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Annual Report 2006 Bendigo Creek Sewer Augmentation Project. Gordon McKern, Coliban Water Chairman, David Bannear, Heritage Victoria, and Geoff Michell, Coliban TABLE OF CONTENTS Water Chief Executive, walk along Bendigo Creek. Chairman & Chief Executive’s Report ...........................2 Profile ........................................................................... 4 Strategic Directions ......................................................6 Securing Water for the Future ..................................... 7 Customers and Service ................................................. 9 Water Resource Management .....................................14 Working with Wastewater .........................................21 Organisational Sustainability .....................................23 Environmental Sustainability ......................................28 Economic Performance ............................................... 32 Statutory Information ..................................................33 Performance Report ....................................................35 Financial Statements ...................................................41 Auditor General’s Report ............................................66 ISO 14001 Lic20398 AS 4801 Lic20179 ISO 9001 Lic8286 Disclosure Index ........................................................ 68 SAI Global SAI Global SAI Global Printed on 55 percent recycled paper, 45% Oxygen bleached virgin fibre. Designed and Printed by Bendigo Modern Press (03) 5447 8811. Photographs by Bendigo Modern Press, Richard Gibbs Photography, The Advertiser (Bendigo) and Coliban Water. PG 1 Coliban Water Annual Report 2005–06 CHAIRMAN & CHIEF EXECUTIVE’S REPORT Two key projects have been fast-tracked to respond to the ongoing drought. A pipeline link from the Goulburn system to Lake Eppalock was chosen as the best solution to obtain water from outside our region. It will cost an estimated $75 M and planning commenced immediately following the project announcement in May. The other key project is a pipeline from the Bendigo Water Reclamation Plant in Epsom to Spring Gully Reservoir which will allow us to use recycled water for public gardens, sporting grounds, rural irrigation and for passing flows to save water currently used from our drinking water supply. The ongoing challenges facing our region are: • the continuing drought; • stresses on the River Murray and its tributaries such as the Coliban, Campaspe and Loddon Rivers, and the likely drying of our catchments with climate change; • accelerating population growth in our major regional centres, particularly along the Calder Corridor and Murray River with new connections continuing at unprecedented levels; and • increasing demands on our water resources associated with regional growth and development. This growth is supported by the Victorian Government through a range of initiatives but in particular from a water perspective through its 2004 White Paper ‘Securing Our Water Future Together’, the ‘Bendigo Regional Action Gordon McKern, Chairman, and Plan’, launched in September 2005, which focuses on Geoff Michell, Chief Executive. Water Policy implementation in our immediate district, and partial funding of the Goulburn Campaspe Link and the Bendigo Recycled Water project. It has again been a year of significant achievements and Customers and Service many challenges. As the impact of ongoing low rainfall Our overall customer satisfaction remained at 95% which continues, we face a growing challenge to provide both was extremely pleasing given ongoing water restrictions short-term and long-term security for our customers. for a significant percentage of our customer base, and the We have adopted many of the initiatives outlined in the various impacts on our customers as a result of our water State Government’s action plan for water reform, Our shortage. Water Our Future. Community awareness of the need to We introduced a stepped tariff pricing system at the start save water is at an all time high, and there is also growing of the financial year and this has been broadly accepted acceptance of the need to make water saving habits a by our customers as a fair and effective way to encourage way of life. conservation. Securing water for the future Using various mechanisms we continued to engage our community. Our community communications program Our water security plan Waterplan 2055 was approved by expanded in early in 2006 and included a variety of the Minister in March 2006 and details how the long term tactics to increase awareness of our plans and actions for sustainability of the region will be achieved from a water water security for our region. perspective. This community endorsed plan takes into consideration: Our extensive program of community consultation over the past year included a series of community workshops • the total water cycle; and focus group meetings with input from our Customer • the social, environmental and economic costs and Consultative Committee, Rural Advisory Committee, and benefits of options; Youth Advisory Council. Community support is central to the success of the Water Security Plan and we will • the financial impacts of options; and continue to engage with our customers and the wider • risk management; including climate change, deviations community during its development and implementation. from predicted population growth, environmental We also continue to raise awareness of sustainable impacts and public health requirements. water use through our school and community education This strategy has four key action areas: urban savings, program. rural savings, greater use of recycled water and sourcing additional supplies. Our focus is now on implementation. Coliban Water Annual Report 2005–06 PG 2 Organisational Sustainability stewardship and minimise adverse environmental impacts. Also this financial year we entered into a During the year we conducted an organisational review Cleaner Production partnership with the EPA to establish and implemented a number of structural changes which Waste Minimisation plans with three companies in the have allowed us to align our structure with our strategic Bendigo Region. plan. To date the changes implemented have proven beneficial in improving business function and efficiencies. Part of planning for our future is to continue to make We thank our skilled, capable and committed staff. better use of what we have. We are making progress on greater use of recycled water to reduce industrial water An Employee Consultative Committee was established usage, to substitute for water used for irrigation and to to improve communication between all levels of staff supplement environmental flows for the long term health and the Board, and to provide an environment for staff of our river systems. Community support for the use of to table workplace issues and provide feedback. The recycled water was demonstrated in our annual Customer Committee is already actively involved in a review of Satisfaction Survey, and two key partnerships were signed Coliban’s performance development and appraisal during the year. One with Bendigo Mining to supply process. Coliban Water with recycled ground water, and the other It is important to acknowledge that our success is with the City of Greater Bendigo to use recycled water on dependent on the support of various stakeholders. parks, gardens and sporting facilities. These include our urban, rural and non-residential Also of note is the success of our Greener Office program. customers, the Victorian Government, various State and Our Bridge Street office in Bendigo has increased paper Commonwealth Agencies, Local Government authorities recycling by 95%, has reduced waste being sent to representing the communities we serve, and various landfill by 85%, and has 98% of general recycling items community and industry groups. being recycled. Partnerships continue to be in an important part of our In the 2005/06 financial year Coliban Water reported a day-to-day operations. The expertise of Campaspe Asset loss of $12.4m. Impacts on our revenue from the drought Management Services (CAMS), Bendigo Water Services, and the revised manner in which our BOOT schemes ETE Coliban and Veolia Water continues to help Coliban must be accounted for were significant factors in the Water deliver excellence in quality water and wastewater result. services. CAMS manage the operations and maintenance of water and wastewater networks including treatment As Coliban faces large capital programs targeted at plants, as well as asset management, information providing water security and recycling, we will be technology and revenue services. This financial year introducing a manageable level of debt to the Balance concludes the third successful year of a 10-year contract. Sheet, consistent with that of an infrastructure business. This is part of our long term financial strategy, and is Occupational Health and Safety has remained a focus monitored by our regulator. and during the year we reported no Work Safe reportable incidents, injury resulting in days lost or lost time due to Coliban Water has paid no dividend during the 2005/06 injuries. Our Safety Management System was certified year, and based on the 2005/06 result, will pay no during the year. dividend in the 2006/07 year. Thank-you to the ongoing commitment of our Board It is a pleasure to present the 2005/06 Annual Report. members. During the year we welcomed Mr David The report is based on the triple bottom line principles
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