EAST GIPPSLAND REGION WATER CORPORATION Annual Report 2007-2008 East Gippsland Water’s Region East Gippsland Water serves a region covering 21,000 square kilometres in the far south east corner of Victoria, with a customer base of 30,741 people. There are 22,816 customers receiving water services and 19,088 receiving wastewater services from the Corporation. East Gippsland Water’s service area extends east from Lindenow and Bairnsdale, through Lakes Entrance to Mallacoota near the New South Wales border and as far north as Dinner Plain in the High Country of the Victorian Alps. Ten separate water supply systems serve the communities of Bairnsdale, Bemm River, Bruthen, Buchan, Cann River, Dinner Plain, Eagle Point, Johnsonville, Lakes Entrance, Lake Tyers Aboriginal Trust, Lake Tyers Beach, Lindenow, Lindenow South, Mallacoota, Marlo, Metung, Newlands Arm, Newmerella, Nicholson, Nowa Nowa, Omeo, Orbost, Paynesville, Raymond Island, Sarsfield, Swan Reach and Swifts Creek. As well, ten individual wastewater systems serve Bairnsdale, Bruthen, Cann River, Dinner Plain, Eagle Point, Johnsonville, Lakes Entrance, Lake Tyers Beach, Lindenow, Mallacoota, Marlo, Metung, Newlands Arm, Nicholson, Omeo, Orbost, Paynesville, Raymond Island and Swan Reach. Cover photograph: The water feature at the entrance to East Gippsland Water’s main office in Bairnsdale recycles water collected from the building’s roof. © State of Victoria, East Gippsland Water Corporation 2008. This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. Printed on recycled paper. AT A GLANCE The Corporation During the reporting period the responsible Ministers were: East Gippsland Region Water Corporation was G The Hon John Thwaites MP, Minister for originally established as East Gippsland Region Water, Environment and Climate Change, Water Authority on 1 January 1995, under the Water from 1 July 2007 to 29 July 2007; Act 1989. It became a Corporation on 1 July 2007. G The Hon John Brumby MP, Minister for It trades as East Gippsland Water. Water, Environment and Climate Change, from 30 July 2007 to 2 August 2007; G The Hon Tim Holding MP, Minister for Water, from 3 August 2007 to 30 June 2008. Contents Page The geographic area covered by the Corporation equates to 10% of the land mass of Victoria and East Gippsland Water’s Region was formerly administered by five Water Boards. Inside front cover In accordance with the Water Act 1989, East Gippsland Water delivers the full range of retail At a Glance 1 water supply functions including water harvesting and storage and urban water supply. It also Vision, Mission and Objectives 2 provides wastewater collection, treatment and recycling services, as well as trade waste services Highlights and Achievements 3 to industrial and commercial customers. G Above, one of the many tours of the Bairnsdale Chairperson’s Report 5 Wastewater Treatment Plant. Corporate Governance 6 Water 2007/08 People and Culture 10 Serviced properties - domestic assessments 19,860 Social Sustainability 16 - non domestic assessments 2,956 Education 22 Volume of water consumed (ML/y) 4,433 Length of water mains (km) 877 Environmental Sustainability 24 Water treatment plants 9 Water Quality 34 Water disinfection plants 17 Asset Management 42 Separate water supply systems 9 Financial Summary 47 Wastewater 2007/08 Serviced properties Other Information 49 - domestic assessments 17,068 Performance Statements 51 - non domestic assessments 2,020 Volume of wastewater Audit Certificate 58-59 collected (ML/y) 2,838 Financial Report 60 Length of sewer mains (km) 576 Wastewater treatment plants 10 Audit Certificate 87-88 Water re-used % 100% Disclosure Index Inside back cover Separate wastewater systems 10 Annual Report 2007-2008 East Gippsland Water 1 VISION, MISSION AND OBJECTIVES East Gippsland Water’s Vision For East Gippsland Water to be recognised as a premier Corporation within the water industry, responsive to the needs of its community, the protection of the environment and the requirements of Government. Our Mission Our core purpose is to ensure that... G Our team provide quality water and wastewater services G Our approach is responsive to customers and the Government G Our operations are cost effective, environmentally sensitive and conducted in a safe and efficient manner G We use sustainable management principles in all our business activities Our Objectives In accordance with the Water Act 1989, East Gippsland Water has the following objectives, which are reflected in its Corporate Plan: G Governance and Regulation We are committed to meeting the requirements of customers, government and stakeholders. G Environmental Sustainability We are committed to environmental sustainability in all aspects of water and wastewater service provision. G Asset Management and Development We are committed to optimising the use of existing physical assets and developing new infrastructure for the delivery of water and wastewater services and emerging requirements. G Management and Operations We are committed to optimising the use of our human, financial and corporate resources. Annual Report 2007-2008 East Gippsland Water 2 HIGHLIGHTS AND ACHIEVEMENTS In its ongoing drive to meet the four key objectives outlined in its Corporate Plan, East Gippsland Water recorded some notable highlights and achievements during the reporting period in the following areas - Addressing bushfires and floods At the start of the year East Gippsland Water staff and contractors continued their efforts to address water quality and supply issues following the drought, bushfires and floods of the previous financial year. Emergency infrastructure, rapidly installed to clean bushfire-affected water from the Mitchell River, proved reliable and paid dividends with secure, high quality drinking water supplies maintained for some 17,000 customers. This success, together with customers’ water saving efforts, enabled any remaining water restrictions to be removed by the Corporation before the end of August 2007. It also meant significantly depleted water storages were replenished in time for the peak summer holiday season. In addition, East Gippsland Water staff, with help from contractors, worked fast to replace some 200 metres of pipeline under the Mitchell River, which was fractured by the force of the floods at the very end of June 2007. This pipeline, serving customers in Lindenow and Lindenow South, was replaced less than a month later. Securing high quality water for small towns East Gippsland Water commissioned three new water treatment plants and a pipeline as part of its commitment to ensure high quality drinking water supplies for the region’s smaller communities. New plants came into full-scale operation at Swifts Creek and Cann River, with the Hon Tim Holding MP, Minister for Water, opening the Buchan Water Treatment Plant and a 17 km pipeline connecting Nowa Nowa to Mitchell River water supplies. These projects marked completion of a $7.7 million program of initiatives, which also included commissioning of a new water treatment plant at Bemm River in 2006/07. Upgrading the Mitchell River supply system... Notable progress was made on a mammoth, $45 million program of works to secure high quality, long term water supplies for some 17,000 customers reliant on the Mitchell River. This is the largest project ever undertaken by the Corporation and takes into account predictions of climate change, with initiatives addressing water treatment, water storage and bulk transfer improvements. Work during the reporting period included completion of the design for a second off-stream water storage at Woodglen, capable of holding some 650 ML of water, with tenders invited for its construction. In addition the design and construct contract for a water treatment plant at Woodglen was tendered and is due to be awarded early in 2008/09. ...and open water storages The Corporation stepped up its program to cover or replace open water storages, recognising the significant benefits to be gained in protecting water quality, and reducing water loss through evaporation and leakage. Pioneering research involving the Corporation and CSIRO had demonstrated how covering open water storage basins dramatically reduced algal blooms and cut evaporation by 90%. Work carried out during the reporting period included installation of a new shadecloth cover over the Lindenow open water storage. On-site work also commenced on a major $1.5 million upgrade, which will include a plastic cover, to the Sunlakes storage, and continued in relation to lining and covering one of the water storages at Wy Yung. Elsewhere, construction work got underway to replace the Eagle Point open water storage, serving the Eagle Point and Paynesville areas, with two large, covered water storage tanks. Annual Report 2007-2008 East Gippsland Water 3 Far reaching Water Plan East Gippsland Water’s Water Plan 2008-2013 was approved by the Essential Services Commission, the water industry regulator, in July 2008 following consultation during the reporting period. It sets out the Corporation’s challenges, objectives, targets and prices for the five year period and, along with the Water Supply Demand Strategy, reiterates East Gippsland Water’s commitment to provide secure, high quality drinking water supplies. The Plan allows for a significant works program totalling some $67 million to upgrade, replace and construct new infrastructure. Successful business The Corporation recorded