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Proposed Sewer Mining Project in Princes Park: [Water Mining Project Facilitation]

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Proposed Sewer Mining Project in Princes Park: [Water Mining Project Facilitation] Page 1 of 7 COUNCIL REPORT Agenda Item 3.2 25 January 2007 PROPOSED SEWER MINING PROJECT IN PRINCES PARK: [WATER MINING PROJECT FACILITATION] Division Assets & Services Presenter Ian Harris, Group Manager Parks and Recreation Purpose 1. To re-affirm Council’s commitment for the proposed Princes Park Water Mining project. Recommendation from Management 2. That Council re-affirm its commitment to the proposed Princes Park Water Mining project to secure recycled water for use in the City’s parks and seek Victorian and Australian Government priority and financial support for the project. Key Issues 3. The current drought and Stage 3 water restrictions have highlighted the need to explore sources of recycled water to drought proof the City’s parks and gardens. The proposed water mining plant in Princes Park has the potential to supply water (when required in summer) to Royal Park (sports fields), Princes Park (including the Carlton Football ground) and Carlton Gardens. The plant also has the potential to be expanded to supply other parks north of the Yarra River including the Fitzroy Gardens, Treasury Gardens and Yarra Park. It also could provide water to the Melbourne Zoo, Melbourne Cemetery and Melbourne University, CSL and Parkville Gardens which could provide a base demand (all year round) for water from the plant. 4. City West Water, the proponent and envisaged operator, in conjunction with the City of Melbourne has confirmed the feasibility of a $30 million fully underground plant in Princes Park. This plant would extract water from the sewer beneath College Crescent and provide treated water to customers such as the City of Melbourne. 5. City West Water applied in 2005 through the State Government, for Federal Government Funding under the Australian Government Water Fund – Water Smart Australia (“AGWF”). It was proposed that the funding for the construction of the plant would be contributed by the Australian Government, Victorian Government and City West Water. The City of Melbourne’s contribution would be to fund reticulation piping and satellite storage tank infrastructure, and the new modified park irrigation system required to irrigate with recycled water. 6. The application for funding was not successful in Round 1 of the AGWF. The understanding is that this project was not submitted by the Victorian Government for Round 2 or Round 3 of the AGWF. Page 2 of 7 7. Council’s initial contribution for Stages 1 - 3 of the reticulation infrastructure to supply water to Royal Park, Princes Park and Carlton Gardens was costed at $1.25 million. However it is estimated that the cost of supplying water to Fitzroy Gardens, Treasury Gardens, Yarra Park and associated ponds and fountains and the installation of new irrigation systems within the parks and gardens could be of the order of $5-$10 million. 8. It is understood that recent discussions involving the Lord Mayor and State Minister for Water have been undertaken to explore funding options for this project. Community Involvement 9. Support of the community is critical for both the construction of the treatment plant in Princes Park and for the use of treated re-cycled water for irrigation of parkland. To ensure that the community is fully informed of this project, a comprehensive community consultation strategy has been undertaken. To date the relevant resident associations have been fully briefed and a general community forum has been held (see Consultation section). Recent interest through the current severe drought and associated water restriction has heightened support of the project. Recycled Water Quality 10. Success of this project depends on the treatment plant producing quality recycled water that is acceptable to the community for use in parkland. Class “A” recycled water is required which meets the Environment Protection Agency and Department of Human Services guidelines for unrestricted use in publicly accessible spaces. The feasibility study indicated that water of this quality would be provided by the proposed plant. Land Tenure & Planning Approvals 11. Council as Committee of Management, in conjunction with the Minister for Planning would be responsible for negotiating and approving a lease (subterranean) for the treatment plant facility in Princes Park and other facilities, e.g. underground tanks in other parks. A maximum 21 year lease can be issued under the Crown Lands Reserves Act without specific legislation. 12. Council as the Responsible Authority under the City of Melbourne Planning Scheme would be responsible for considering and approving the planning permits required for the treatment plant and the storage tanks located in the other parks and gardens. The statutory planning process also would allow for further community input. Financial & Water Purchase Arrangements 13. City of Melbourne and City West Water financial staff have investigated financial modelling scenarios. A long term agreement is proposed to be negotiated by the parties based on the premise that the initial purchase of recycled water used by the City of Melbourne would be at or below the potable water rate (currently 91.3 cents per kilolitre) applicable at the commencement of the scheme. Environmental Approvals 14. Environmental approvals would be issued by the Environment Protection Authority with a pre- requisite endorsement by the Department of Human Services required. Both the Environment Protection Authority and Department of Human Services have been fully involved in the planning of this project. 2 Page 3 of 7 Time Frame 15. Should an application for funding be successful it is expected this would initiate a four year project timeframe for detailed planning and construction as follows: 15.1. a 9-12 month community consultation, approvals and design phase (2007); 15.2. a 12 month treatment plant construction phase (2008); 15.3. an initial water treatment phase – Princes Park Only (2009) – (Stage 1); and 15.4. subsequent stages of increased water treatment, Royal Park (Stage 2), Carlton Gardens (Stage 3) and later Fitzroy Gardens, Treasury and Yarra Park. Relation to Council Policy 16. Council’s Water Management and Conservation Policy “Total WaterMark” calls for an ongoing reduction in consumption of potable water by Council with a target reduction of 40% by 2020. This is to be achieved by reducing total water use, and the substitution of potable water with recycled water. The operation of this plant would make a major contribution towards the target. 17. Council’s Environmental Management Strategy for Parks and Recreation Facilities “Growing Green” - calls for the increase in the use of water products from renewable and alternative sources in the development, refurbishment and management of parks and recreational facilities. Consultation 18. Initial consultation has been undertaken on the project as follows: 18.1. Resident Groups - A briefing of relevant residents associations about the underground treatment plant in Princes Park was held on 26 September 2005. The groups involved were the Parkville Association, Save Princes Park Group, Princes Park Protection Group, Carlton Association and North Carlton Association. Positive feedback was received at this meeting with regard to this proje ct; and 18.2. Community Forum - A Community Forum chaired by Councillor Brindley was held on Monday, 10 October 2005 involving residents from Princes Park, Royal Park and Carlton Garden areas. This forum specifically addressed the issue of the use of recycled water for irrigation of parkland. The feedback indicated general support for the use of recycled water and the associated underground treatment plant. The need for a traffic management plan in order to protect residential areas from increased truck traffic during the construction period of the treatment plant was also identified. 19. Extensive ongoing involvement of the community will continue to be undertaken during the planning and approval process. Specific initiatives will include the preparation of an information brochure, information provided on Council’s website, corporate advertisements in the local papers and further community forums. The community will also have the opportunity to input when Council considers the planning approvals required for the project. 3 Page 4 of 7 Government Relations 20. The State Government’s White Paper on Water released on 23 June 2004 strongly promotes the increased use of recycled water. It also calls for water authorities to be responsible for development of pricing arrangements whic h encourage the efficient use of the most sustainable source of supply of recycled water, and that reflect the principles of user pays, polluter pays and beneficiary pays. 21. The Department of Sustainability and Environment on behalf of the Minister responsible for Crown Land, (Minister for Planning) has been kept informed of this project. Finance 22. Council’s contribution to Stages 1-3 of the project has been costed at $1.25m. This commitment is to provide the reticulation and satellite tanks to supply water to the parks and gardens. Council has not committed to provide any funds to the cost of construction of the plant, but would purchase water at the price of mains water from the operator, City West Water. The 2006/2007 capital budget provides $300,000 towards this project. Legal 23. Whilst no direct legal issues arise from the recommendation, legal advice will be provided as required on matters arising from the project. Sustainability 24. The Treatment Plant’s overall peak capacity would be 700,000 kilolitre/year with an estimated maximum potential demand for all users of 580,000 kilolitre/year. The City of Melbourne’s use, depending on seasonal fluctuations and irrigation system efficiencies, is likely to range from 350- 450,000 kilolitre/year plus the water required for Treasury and Fitzroy Gardens and Yarra Park. Potable water savings in the order of 25 -30 % of the current average annual volume of water used to irrigate Council’s parks (1.2 million kilolitre) are anticipated. 25. A preliminary embodied energy assessment of the proposal has been conducted.
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