Sydney Catchment Authority
Annu a l Repo r t 2004–2005
SCA Head Office, Penrith Hours: 9am to 5pm Sydney Catchment Authority Monday to Friday Level 2, 311 High Street Web: www.sca.nsw.gov.au Penrith NSW 2750 Email: [email protected] PO Box 323 Penrith NSW 2751 Sydney Catchment Authority Phone: +612 4725 2100 1300 SCA GOV ANNUAL REPORT 2004–2005 (1300 722 468) Fax: +612 4732 3666
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About the SCA 1 Letter to the Minister 2 Report from the SCA Chairman 3 Year in Review (Chief Executive/Managing Director) 4 Report from the Board 8
Principal Legislation 11 Visitor Information Field Office Locations Principal Regulations 11 Warragamba Dam Visitor Centre Goulburn Office Our Corporate Governance 11 Phone: (02) 4720 0349 Suite 5, Newo House SCA Board 11 SCA Organisational Structure 14 Hours: 10am to 4pm every day 23-25 Montague Street Key Areas of Performance 15 except Christmas day Goulburn NSW 2580 KRA 1 – Threats to Water 17 and Good Friday Phone: (02) 4823 4200 Quality Minimised Fax: (02) 4822 9422 f How risks to water quality are managed 19 f How the SCA influences land use and All other dams, reservoirs and camping grounds Hours: 8am to 4pm 20 development in the catchments Phone: (02) 4640 1200 Wednesday and Thursday f How the Healthy Catchments 21 Program achieves its goals Hours: 9am to 5pm daily f Rehabilitating derelict mine sites 26 Monday to Friday Operational offices f The role of catchment audits 27 Cordeaux Dam KRA 2 – Sustainable and Reliable 29 Water Supply Emergency Reporting Warragamba Dam f The supply of quality water to customers 31 (24 hours) Kenny Hill f How we managed SCA assets 35 Fires, chemical spills Burrawang f Our commitment to dam safety 36 Phone: (02) 9751 1988 Blue Mountains f Mining beneath SCA infrastructure 38 KRA 3 – Commercial Success 41 Fax: (02) 4842 9402 f How we performed against our financial targets 43 f New financial reporting standards 44 f Best practice procurement 44 f Financial risk management 45 KRA 4 – Building and Sharing Knowledge 47 f How we build and share catchment knowledge 49 f Why we provide grants and incentives 49 f Providing education resources 52 f How we conduct Science and Research 54 KRA 5 – Results Through Relationships 59 f Consultation to make the best decisions 61 f Working across Government 61 f How we keep our stakeholders informed 63 f Customer satisfaction 64 KRA 6 – Dynamic, Supportive Workplace 67 f Our people 69 f Occupational Health, Safety and Rehabilitiation 69 f Development and involvement of our people 70 f Equal Employment Opportunity 72 KRA 7 – Quality Systems and Processes 75 f Achievements in Environmental Performance 77 f Developments in our legislative framework 77 f Process Improvement 79 financials 81 Appendices 119 2004-2005 Annual Report Compliance Checklist 137 Glossary of terms 139 List of contractions 140 designed and Produced by ImpressDesign (02) 9279 0022
Sydney Catchment Authority Annual Report 2004–2005 Sydney Catchment Authority Annual Report 2004–2005
6440-SCA-Cover.indd 2 30/11/05 10:14:07 AM About the SCA The SCA’s current business plan was developed by the Board and Investing in the Catchments SCA Executive, and incorporates the following principles.
This is the sixth annual report of the Sydney Catchment Authority Our Vision (SCA). The report is structured according to the SCA’s Business Plan Healthy catchments, quality water – always 2002–2007 with particular reference to the plan’s seven key result areas (KRAs). The report provides a transparent and accountable Our Role summary of the SCA’s performance. To capture, store and supply quality bulk raw water through The theme of the report is ‘Investing in the Catchments’. This theme responsible management and partnerships with stakeholders highlights the SCA’s investments across all areas of its responsibility Our Key Values to ensure a secure supply of good quality bulk raw water now and in f Being accountable the future. The focus of the SCA’s investments includes the growth and management of SCA assets, operations and people. The theme f Caring for the environment also highlights the value that the SCA places on the partnerships f Behaving ethically it has developed and continues to develop with its broad range of stakeholder groups. f Working together
If you would like to know more about any aspect of this annual report f Acting professionally or wish to provide feedback on how future annual reports could be f Being respectful improved, please contact the SCA’s Publications Officer by emailing [email protected], by telephoning 1300 722 468, or by writing to f Ensuring safety the SCA at PO Box 323, Penrith NSW 2751. Our Key Result Areas This report is available electronically by visiting www.sca.nsw.gov.au f Threats to water quality minimised and as a printed copy by contacting the SCA’s Publications Officer. f Sustainable and reliable water supply The SCA at a Glance f The Sydney Catchment Authority (SCA) was established in 1999 Commercial success under the Sydney Water Catchment Management Act 1998. Its role is f Building and sharing knowledge to protect and enhance the drinking water catchments, to manage f and protect the SCA’s infrastructure works including dams and Results through relationships pipelines, and to supply quality bulk raw water to its customers. f A dynamic and supportive workplace The SCA’s customers include Sydney Water, two local councils and, f Quality systems and processes as at 30 June 2005, sixty retail customers. How We Are Funded The SCA collects water from five primary catchments, which occupy 16,000 square kilometres. The water is stored in a total of 21 dams, SCA activities are funded by the sale of water to Sydney Water with the capacity to hold more than 2.4 million megalitres of water Corporation (Sydney Water) and other customers. (one megalitre is the equivalent of one million litres). Approximately Water prices are determined by the Independent Pricing and 4.2 million people, or about 60 per cent of NSW’s population, Regulatory Tribunal (IPART). consume water supplied by the SCA.
The SCA’s functions and services are diverse and benefit the people of Sydney, Illawarra, Blue Mountains, Southern Highlands and others living within the SCA’s catchments.
Sydney Catchment Authority Annual Report 2004–2005 Investing in the future
Sydney Catchment Authority Annual Report 2004–2005 Report from the SCA Chairman Warragamba dams. The Board has been their continuing efforts and commitment on This is the third year in which the SCA has actively involved in ensuring these key behalf of the SCA and the community examined and measured organisational projects are pursued. it serves. performance against the framework of its Over the year, the Board supervised the The year ahead holds the promise of more Business Plan 2002–2007, developed by development of a new framework for challenges for the SCA – not the least the Board and Executive. The report clearly managing all assets controlled by the SCA. of which is our ongoing contribution to demonstrates that the SCA has continued The framework is designed to ensure that the implementation of the Government’s to build on the solid progress achieved in all decisions about assets are soundly long-term water strategy for Sydney. Our earlier years in managing catchment health based, whether they refer to catchment role in the implementation of Sustaining the and the bulk water supply system. lands, water supply infrastructure, buildings, Catchments, the draft Regional Plan for the Asset management and capital expenditure plant or equipment. Consistent with the drinking water catchments of Sydney and have been central to the Board’s principles of the NSW Government’s Total adjacent regional centres, will also pose performance over the past year and Board Asset Management, the framework links its challenges. decisions about SCA assets to decisions members have provided a wealth of I am confident that the SCA is equipped about SCA services and a comprehensive valuable experience. During 2004–05 the to meet the challenges that lie ahead, and understanding of future demand for those focus has been on the delivery of complex look forward to continuing to work with my services. Central to the new framework are engineering projects and the challenges that Board colleagues, the Executive and staff in the Service Delivery Strategy and the Asset the NSW Government’s Metropolitan Water addressing them. Plan presents for the SCA. Strategy. The latter analyses the condition of current assets and identifies future The three priority areas of the Board’s maintenance and investment strategies. attention during the year were: The Board anticipates that the new f drought management strategies framework will provide a solid base for asset f implementation of aspects of the management and increase transparency for JOHN WHITEHOUSE Chairman Government's long-term plan for urban stakeholders and regulators. water, the Metropolitan Water Plan The framework has produced a simplified, f enhanced asset management clearer capital expenditure program frameworks. for 2005–06 and beyond. Enhanced approaches to project management and The SCA and its Board have worked closely training for key staff will provide the tools to with Sydney Water Corporation and its deliver the outcomes required by the Board. Board in both the strategies for drought management and the implementation of the The Board is confident that these Metropolitan Water Plan. changes will position the SCA to respond to the challenges ahead and meet the The actions of the SCA in progressing expectations of both the Government and access to deep water stored in the community. Warragamba, Nepean and Avon dams, together with significantly elevated water In recognising the significant achievements transfers from the Shoalhaven Catchment of the SCA over the past year, I wish to via Tallowa Dam, have assisted and will acknowledge the efforts of the Board continue to assist in reducing the impact of Members, Chief Executive, Managing the current drought. Director and the Executive. I particularly wish to acknowledge Robert Corben for Putting in place the Metropolitan Water Plan his valuable contribution as a member of involves the SCA in progressing proposals the SCA Board. Robert retired from the to raise Tallowa Dam and provide greater Board in April 2005 and I thank him for his capacity in the transfer arrangements from service. I would also like to thank staff for the Shoalhaven Catchment to Avon and
Sydney Catchment Authority Annual Report 2004–2005 Investing in the future
Year in Review Threats to water quality minimised Sustainable and reliable water supply (Chief Executive/ f The SCA’s Water Quality Risk f The SCA’s response to the challenges Managing Director) Management Framework was finalised in of the Government’s plan for Sydney’s Throughout the year the SCA strengthened June 2005. It brings together strategies water supply has broadened the its ties with key government agencies and and tools to enable a holistic approach focus of our capital works program this has promoted a ‘whole of Government’ to managing risks in the catchments and over the longer term. While effectively response to the challenges of the Sydney’s raw bulk water supply network. maintaining our regular capital works Metropolitan Water Plan. The plan has been program, we achieved significant f We continued to take a strong role in designed to provide Sydney with sustainable progress in key Metropolitan Water facilitating the finalisation ofSustaining and secure supplies of drinking water well Plan engineering projects, including the Catchments, the draft Regional Plan into the future. The collaborative approach to ground water exploration and deep for the drinking water catchments of the Metropolitan Water Plan has assisted us water access within the storages. in harnessing the knowledge and expertise Sydney and adjacent regional centres. f required to implement the key projects we Our analysis of issues raised through Despite another year of severe drought, are responsible for under the plan. the consultation process resulted in we continued to supply customers minor amendments to the draft plan. with the required quantities of bulk raw While the Metropolitan Water Plan is water of a consistently high standard. f important to the SCA’s operations, The Healthy Catchments Program f throughout 2004–05 we continued to continues to guide our investments in the Our assessment of water supply successfully manage the other key areas of catchments. During the year substantial assets continued over the year with our business to meet the obligations of our progress was achieved in key strategies the Asset Improvement and Reliability operating and water management licences. of the program to protect and enhance Program extended to incorporate water quality and catchment health. the civil, mechanical and electrical assets not analysed last year.
f Substantial improvements were made in managing the procurement and maintenance of SCA assets. Improvements included the development of robust and detailed management tools such as a Total Asset Management Framework, an Asset Strategy, and processes for capital works expenditure.
Commercial success
f The SCA responded to IPART’s draft pricing determination with a submission and a supplementary submission. The supplementary submission took into f The SCA’s heightened presence in the account revised capital costs the SCA The SCA continues to mature as an catchments, through the use of aerial will incur as a result of the Metropolitan organisation and has achieved some and boating surveillance operations, Water Plan, and downward projections spectacular results within the seven key has placed us in a better position to of demand for bulk water supplies. result areas of the SCA’s Business Plan detect and manage illegal access and 2002–2007. Achievements for 2004–05 are activity in the catchments, particularly in highlighted below under each of the key critical areas surrounding waterways. result areas.
Sydney Catchment Authority Annual Report 2004–2005 f We adopted the Australian equivalents of 2003–04, helped fast-track work objectives. Projects included pest and the new International Financial Reporting under the Metropolitan Water Plan. weed eradication, erosion control and Standards as required by the Australian other land and water-based activities. Building and sharing knowledge Accounting Standards Board and the f The SCA made grants to other Financial Reporting Council. Adopting f The launch of the SCA’s electronic government agencies for projects that the new standards had a major impact mapping system, ActiveMap, has focused on water quality and catchment on the preparation of the 2006 budget. enabled staff at all SCA sites to health. The projects included funds to interact quickly and efficiently with f By carefully managing expenditure, upgrade sewerage systems, heighten important geographic data relating the SCA was able to meet its budget awareness of the risks that chemicals to our operations, and to print high despite a reduction in revenue as a result can pose to waterways, and train quality, customised maps. The of the drought. The fall in revenue was people in compliance activities. system has improved the efficiency the result of a fall in demand for bulk of our operations and enhanced our f Under the Environmental Education water and an increase in expenditure decision making for the catchments. Coordinating Network of government due to water pumping costs. agencies, the SCA chaired a group f The SCA acknowledges the contribution f Service level agreements were developing a NSW Water Education Plan. that the community makes towards negotiated with Department of Lands protecting catchment lands and f The Board approved the SCA’s new and the Roads and Traffic Authority waterways to improve water quality. This strategic plan for science in June to undertake work throughout year, the SCA granted around $846,500 2005. The plan was developed through the catchments. Another service to individuals and environmental extensive consultation with other level agreement, established with groups to undertake projects aimed professionals and is tailored to the the Department of Commerce in at achieving the SCA’s water quality needs of the SCA’s short and long-term activities in the catchments.
Results through relationships
f We continued to consult with local government and representatives from the environmental, farming and business sectors of the community. Committee agendas focused on SCA operations as they applied to the needs and interests of the different stakeholders groups.
f The SCA had a leadership role in a variety of strategic inter-agency forums that focused on long-term reliability of Sydney’s water supply.
f The community was kept informed about our drought management initiatives and our role in implementing the Government’s Metropolitan Water Plan. Information was delivered through the media, our publications and our website. Visitors to the website more than doubled in the past year and there was particular interest in dam levels.
Sydney Catchment Authority Annual Report 2004–2005 Investing in the future
f Partnerships between the SCA and the f The development of our Business Having established the SCA’s Business Hawkesbury-Nepean and Southern Management System was completed. Plan Working Group during the year, Rivers catchment management The system documents our key the primary initiative for the Group authorities were strengthened through policies and procedures to streamline in 2005–06 will be to develop a new formal agreements. The agreements our business operations and ensure business plan for the period 2007–2012. outlined the roles and responsibilities consistency across the SCA business. The SCA has achieved significant of each of the partners in delivering f The Corporate Program Office was progress under the current business plan catchment management outcomes. established and a standard project and we look forward to the year ahead Dynamic, supportive workplace management methodology developed with enthusiasm and confidence. to improve the management and f The first full cycle of our performance The continued hard work and good outcome of SCA projects. management system was completed. graces of the SCA workforce are The system recognises work f The new leasing regime for our greatly appreciated. We would also contributions by staff and provides properties, developed during the like to acknowledge the support a forum for better communication year, promotes good water quality of the Board and the Minister. between staff and management. through efficient and environmentally sound land management. f Professional development opportunities for staff included participating in the The Year Ahead Graduate Certificate Management Implementing key strategies of the Course for the NSW public sector Government’s Metropolitan Water Plan LISA CORBYN Chief Executive and the Executive Masters Program will continue to be a major focus for the offered by the Australian New SCA in the coming year. Construction Zealand School of Government. will continue on major projects related to f The SCA adopted the Government’s deep-water storages and groundwater Community Language Allowance investigations will proceed. Further Scheme, which encourages staff focus will be on increasing water supply GRAEME HEAD Managing Director with a second language to provide transfers within the water supply system language support for others. and improving environmental flows. This high level of activity will involve substantial f Fitness tests were available to investment of capital and staff resources. staff who fight bushfires or enter confined spaces. Our Health We will continue our commitment to Monitoring and Promotions Program managing and maintaining our assets included an influenza vaccination and to our capital works program. Major program for staff and adjustments projects planned for the coming year include to workstations where necessary overhauling the electrical wiring system to reduce the potential for injury. at Warragamba Dam, constructing new pumping stations at Prospect Reservoir Quality systems and processes and Cascade Dam, and upgrading f The SCA achieved full to high compliance major access roads within SCA lands. for 83 per cent of audited clauses within Ongoing investments in the catchments the SCA’s operating licence. will be influenced by our application of f We maintained the purchase of green the new Water Quality Risk Management power at 10 per cent (excluding Framework. In particular it will inform pumping from the Shoalhaven system). our Healthy Catchments Program which Managing energy focused on reducing has strategies to manage stormwater, the amount of energy used in relation sewage, riparian areas, rural lands and to our normal operations and fleet. compliance matters within the catchments.
Sydney Catchment Authority Annual Report 2004–2005 Sydney Catchment Authority Annual Report 2004–2005 Investing in the future
The impact of the drought on from the drinking water supply. Water from urban water, the Metropolitan Water Plan. the SCA’s operations – a special Tallowa Dam has significantly contributed The plan is critical not only to longer-term report from the SCA Board to the available water supply, with over water supply but also in responding to the Sydney is experiencing one of the worst 120GL of water transferred in 2004–05. This impact of the current drought. The plan droughts on record. The persistent drought represents 23 per cent of the water supplied identifies initiatives required to reduce conditions have been a key focus for the to Sydney Water Corporation in that year. water demand, increase water recycling and secure additional water supplies. Board in guiding the SCA throughout the Work intensified not only in response to past year. day-to-day management in relation to the The SCA plays a pivotal role in securing While the SCA water storages have drought, but also in order to implement the additional water supplies for use continued to decline during the current the Government’s long-term plan for during the drought. It has progressed drought, the decline has been slightly less in 2004–05 than in the previous two years. Movement in combined SCA available water storages We have worked closely with customers and 30 June 2004 – 30 June 2005 across government to plan and manage our 2,600,000 operations in order to maintain a continued Full operating storage supply of good quality raw water to our 2,400,000 customers. The SCA, Sydney Water and 2,200,000 other government agencies have worked 2,000,000 Available storage as at in partnership to plan and implement water 1,800,000 30 June 2004 conservation measures such as the water 1,600,000 38.3% restrictions introduced when the total 1,400,000 55% operating storage water supply system storage levels fell to Megalitres 1,200,000 40 per cent. This planning has included Available storage monitoring community attitudes to water 1,000,000
conservation, water saving behaviour 800,000 and water restrictions. This work revealed 600,000 a high level of community support for 400,000 initiatives to reduce water consumption. As at the year’s end, the community’s 30/04/05 31/05/05 31/08/04 31/10/04 31/12/04 31/03/05 30/06/04 30/11/04 31/07/04 31/01/05 30/06/05 30/09/04 water consumption had fallen by 12 per 28/02/05 cent against the 10 year average. In the previous year, 2003–04, the reduction was 7.4 per cent against the 10 year average.
One of the smaller dams within the supply Available water storage in total systems for 2002–03 system, Tallowa Dam (at the junction of 2,600,000 the Shoalhaven and Kangaroo Rivers) was Full operating storage built to provide emergency supplies of 2,400,000 drinking water for Sydney. Transfers from 2,200,000 Tallowa Dam have occurred during four Available storage 2,000,000 Available storage as at periods since the dam was commissioned 1,800,000 30 June 2003 in 1977. In the present drought the SCA Megalitres commenced transfers in April 2003. 1,600,000 62.2% 1,400,000 Over the past year, the Shoalhaven 1,200,000 Catchment has received considerably more 55% of operating storage rainfall than some of our other catchments. 1,000,000
Had water not been captured and 800,000 transferred to Warragamba, during episodes Jul 02 Aug 02 Sep 02 Oct 02 Nov 02 Dec 02 Jan 03 Feb 03 Mar 03 Apr 03 May 03 Jun 03 of high rainfall, the dam would have overflowed and water would have been lost
Sydney Catchment Authority Annual Report 2004–2005 Available water storage in total systems for 2003–04 The drought has created additional challenges and greater workloads for many 2,600,000 Full operating storage people in the SCA, with increased efforts 2,400,000 to inform the community of the impacts of rainfall events and the government’s 2,200,000 future plans for the water supply. The 2,000,000 Available storage as at Board recognises the dedication and 1,800,000 Available storage 30 June 2004 substantial contribution that the people of Megalitres 1,600,000 47.5% the SCA have made throughout the year. 1,400,000 Over the past year the total amount of 1,200,000 55% of operating storage available water in the combined SCA 1,000,000 storages fell from 47.5 per cent to 38.3 per cent. The level of water fell in most of the 800,000 larger storages, including Warragamba Jul 03 Aug 03 Sep 03 Oct 03 Nov 03 Dec 03 Jan 04 Feb 04 Mar 04 Apr 04 May 04 Jun 04 Dam. Smaller dams, which empty and fill more quickly than the larger storages, recorded some increases in water levels. Available storage at 30 June 2004 and 30 June 2005
90 2004 2005
80
70
60
50
40
30 Available storage (%) Available 20
10
0
Avon Total Cataract Nepean Tallowa Cordeaux Woronora Prospect Warragamba Fitzroy Falls Wingecarribee Blue Mountains projects to access the deep water stored The SCA is also exploring opportunities in Warragamba, Nepean and Avon dams. to secure groundwater sources for use Accessing these reserves will mean an as emergency drought water supplies, additional six months supply will be available with preliminary investigations in the if the present drought persists. In the longer Southern Highlands revealing encouraging term, an additional 30 billion litres of water groundwater supplies. These require will be available for use each year. The deep further studies to determine the extent of water access projects are all well underway the groundwater resource and potential and will be completed in mid-2006, nearly environmental impacts. There are six months ahead of their original schedule. other groundwater sources still being explored. Groundwater will only be considered as an emergency measure to supplement water during drought.
Sydney Catchment Authority Annual Report 2004–2005 Investing in the future
the sca board
John Asquith John Whitehouse, Chairman Robert (Bob) Corben Maggie Deahm
Graeme Head (Managing Director) Kenneth Wheelwright
Kerry Chant Sara Murray
Lisa Corbyn, Deputy Chairman
10 Sydney Catchment Authority Annual Report 2004–2005 Principal Legislation to seek the SCA’s agreement (or both) regarding certain developments. The SCA is constituted under the Sydney The lands adjacent to the SCA’s dams are Water Catchment Management Act 1998 defined as Special Areas. The SWCM Act Our Corporate Governance (the SWCM Act). Our role is to manage and provides for joint management of the SCA’s SCA Board protect the catchment areas and catchment Special Area lands with the National Parks infrastructure works, to supply bulk raw and Wildlife Service (now part of DEC). The SCA Board is appointed by the Minister water, and to regulate certain activities within Plans of management for each Special Area for the Environment according to section or affecting the catchments. must be prepared to maintain ecological 7 of the SWCM Act. Currently, the Board consists of nine members, including the To manage the SCA’s catchment integrity and protect water quality. Current Chairman, who is also appointed by the infrastructure works efficiently, plans are the Special Areas Strategic Plan Minister. The Board includes the SCA’s economically and according to sound of Management, and the Wingecarribee Chief Executive and Managing Director, an commercial principles, the SWCM Act Swamp and Special Areas Strategic Plan elected councillor from a local government provides for financial accountability to of Management. area within the catchments, and a nominee the Treasurer through the Statement Principal Regulations from each of the following key stakeholder of Financial Framework. This includes The SCA regulates access to Special groups: the Nature Conservation Council of a statement of financial purpose, Areas and other areas under SCA control, NSW, and the NSW Farmers Association. provision to pay dividends, tax- and activities that are likely to impact on Collectively, board members have expertise equivalents and guarantee fees. catchment lands and water quality. The in the areas of environmental protection, The SCA has an operating licence, granted SCA’s regulatory tools consist of regulations public health, and other areas that the by the Governor under the SWCM Act. It made under the Sydney Water Catchment Minister considers necessary to enable the sets out the terms and conditions by which Management Act 1998, and planning SCA to realise its objectives. the SCA must provide, construct, operate, instruments made under the Environment The Minister appointed the Board after manage and maintain efficient, coordinated Planning and Assessment Act 1979. nominations for membership were sought and viable systems and services to supply The Sydney Water Catchment Management from qualified people through advertising bulk raw water. The Independent Pricing (General) Regulation 2000 allows the SCA in the regional, metropolitan and national and Regulatory Tribunal (IPART) audits the to regulate access and activities in SCA press. SCA’s performance against the terms and controlled lands and Special Areas. The conditions of the operating licence. In December 2004, the Minister reappointed Sydney Water Catchment Management the existing Board for a further three-year The SCA must comply with a water (Environment Protection) Regulation 2001 term, commencing on 4 March 2005. management licence issued by the allows the SCA to protect water quality Department of Infrastructure, Planning and and manage the catchments by exercising As at 30 June 2005, the Board comprised Natural Resources (DIPNR). The licence certain regulatory functions under the the following members: places conditions on the SCA’s water Protection of the Environment Operations Act f John Whitehouse (Chairman) management, including access to water 1997 relating to non-scheduled premises resources within its area of operations, and and activities. f Lisa Corbyn (Deputy Chairman and the extraction and release of water to rivers Chief Executive – Ex Officio) Under section 117 of the Environmental (environmental flows). Planning and Assessment Act 1979, the SCA f John Asquith The SCA must enter into a Bulk Water influences development and amendment f Kerry Chant Supply Agreement with Sydney Water of local environmental plans to ensure Corporation (Sydney Water) about the that they contain adequate measures to f Maggie Deahm quantity and quality of water it supplies protect catchments and water quality. State f Graeme Head (Managing to Sydney Water. The SCA must also Environment Planning Policy – Protecting Director – Ex Officio) enter into memoranda of understanding Sydney’s Water Supply (SEPP 58), took with the Department of Environment and effect on 1 February 1999. The policy f Sara Murray Conservation (DEC), the Department requires new developments within the f Kenneth Wheelwright of Infrastructure, Planning and Natural catchments to be assessed for potential Resources (DIPNR), and the Department of impacts on water quality. SEPP 58 requires Health (NSW Health). a consent authority to notify the SCA, or
Sydney Catchment Authority Annual Report 2004–2005 11 Investing in the future
Board Members John Asquith Mr Corben is currently a board member of the NSW Legal Aid Commission and John Whitehouse, Chairman John Asquith represents the Nature holds a number of directorships in industry. Conservation Council of NSW on the Board. John Whitehouse has had an extensive He has also acted as administrator for Mr Asquith is Honorary Secretary of the career in law and public service. He is a 10 cooperatives. Prior to entering public Nature Conservation Council, as well as partner with Minter Ellison, where he is practice, Mr Corben held a number of senior Chairman of the Community Environment Practice Head, Planning and Environment financial positions in commerce Network. He has been a trustee of the NSW Law. He is a Fellow in Environmental Studies and industry. at Macquarie University and an Honorary Environmental Trust, and a member of the Professorial Fellow in the School of Law at NSW Bushfire Coordinating Committee. Mr Corben retired from the Board in April 2005. The SCA thanks him for his services. the University of Wollongong. His previous Mr Asquith has recently been appointed positions include: as a board member of the Hunter–Central Maggie Deahm Rivers Catchment Management Authority. f Partner, Dunhill Madden Butler Maggie Deahm has spent most of her f Director, NSW National Parks Mr Asquith holds Bachelor of Engineering working life in the NSW Public Service, and Wildlife Service and Master of Arts degrees, and is a conjoint including nine years with the Ministry for lecturer in the School of Applied Science, the Arts and 12 years with the NSW Agent f Assistant Director, NSW Department Sustainable Resource Management General’s Office, London. of Environment and Planning of the University of Newcastle. Ms Deahm has lived in the Blue Mountains f Director, Sydney Water Corporation. Kerry Chant since 1987 and was elected to the Blue Mountains City Council in 1991. She served Mr Whitehouse holds degrees in Arts Kerry Chant is Director, Public Health as the Federal Member for Macquarie and Law from the University of Sydney, Unit, South Western Sydney Area Health from 1993 to 1996. She served both as Science from Macquarie University, and Service. Her areas of responsibility include a member and Chairman of the Western has a Diploma in Legal Practice from the environmental health and the prevention and Sydney Waste Board from 1996 to 2000. University of Technology, Sydney. control of infectious diseases. Ms Deahm was Deputy Chairman of the Lisa Corbyn, Deputy Chairman Dr Chant holds a Medical Degree and board of the Jenolan Caves Reserve Trust Lisa Corbyn has been the Chief Executive Masters Degrees in Health Administration and an assessor to the Local Government of the SCA since September 2003. She and Public Health. She is a member of the Remuneration Tribunal. is also Director General, Department of Royal Australian College of Physicians, Graeme Head (Managing Director) Environment and Conservation. Ms Corbyn Faculty of Public Health. Graeme Head is the SCA’s Managing held the position of Director General of Dr Chant was Chairman of the Corporate Director and responsible for its day-to- the Environment Protection Authority from Governance Committee from July 2004 to day management. He held the position of November 2000 to September 2003, March 2005 when it was disbanded. having held executive positions within SCA’s Chief Executive from October 2001 the Environment Protection Authority Robert (Bob) Corben to September 2003. Mr Head previously worked for 12 years at the NSW Environment since its inception. She is Secretary of the Robert Corben is a Fellow of the Australian Protection Authority and its predecessor, the Environmental Trust, a commissioner of Society of Certified Public Accountants and State Pollution Control Commission. Over the Murray Darling Basin Commission, a registered company auditor. Mr Corben that time, he held the positions of Assistant and a member of the Council on the Cost has been in public accountancy practice Director General and Director Education and of Government. for some 28 years. The practice specialises Community Programs. Ms Corbyn holds a Bachelor of Arts degree in ongoing financial advisory services and in International Relations, a Masters Degree Mr Corben also acts as consultant to a Before working at the Environment in Public Administration, and undertook a number of state and federal government Protection Authority, Mr Head worked for Fellowship in Environmental Economics departments. Accounting and financial many years in health and human services, at Woodrow Wilson School of Public and services are provided to a diverse client including as an Assistant Director at the International Affairs at Princeton University. base drawn from both the private and public NSW Centre for Education and Information sectors, including funded organisations. on Drugs and Alcohol.
12 Sydney Catchment Authority Annual Report 2004–2005 Sara Murray Board Meetings The first meeting of the Business Plan Working Group was scheduled for July 2005. Sara Murray has been a councillor for The Board meets 11 times a year – from Its members are: John Asquith (Chairman), Wingecarribee Shire Council for 12 years, February to December. When necessary, the Maggie Deahm, John Whitehouse, Sara including four years as mayor and a year Board also considers matters out of session. Murray, Lisa Corbyn, Graeme Head, and as deputy mayor. Until October 2004, Dr In 2004–05, the Board met 12 times. Executive members George Dodds and Murray was President of the NSW Local Standing Committees Barrie Turner. Government Association, having previously held the position of Deputy President. She The Board operated through two standing Audit Committee has also served on a number of inter- committees throughout 2004–05. Before 23 The Audit Committee ensures the government committees and has a strong March 2005, it operated through the Audit effectiveness of the SCA’s internal and interest and involvement in water related and Committee and the Corporate Governance external audit processes and considers environmental issues. Committee. On 23 March 2005, the Board revised its committee structure and now issues raised by the auditors. The committee Dr Murray is a psychologist in private operates through the Audit Committee and is responsible for confirming that the SCA’s practice. She holds a Bachelor of the Business Plan Working Group. accounting policies and principles accord Arts degree from the Australian with the stated financial reporting framework. National University and a Doctorate Corporate Governance Committee It also ensures that the Board is informed in Psychiatry from the University of The Corporate Governance Committee of significant issues raised by the auditors, Sydney. She has held various research ensured that the SCA met all of its statutory management or committee members. and university teaching positions. reporting requirements. It monitored the SCA’s Robert Corben resigned from the Audit performance by overseeing the development Kenneth Wheelwright Committee in April 2005. John Asquith of quarterly reports to the Board on matters resigned from the Audit Committee Kenneth Wheelwright is the NSW Farmers’ including the SCA Business Plan 2002– and Kerry Chant was appointed to it in Association nominee to the Board. 2007, Statement of Financial Framework, May 2005. Mr Wheelwright manages a grazing property and Capital Works Program. in the catchment on the upper reaches of the The Corporate Governance Committee Wollondilly River. He has an active interest in also oversaw the development of quarterly developing sustainable and profitable farm reports to the Board regarding SCA management practices. licences. The reports identified the SCA’s Mr Wheelwright holds a Bachelor of Rural level of compliance with the licences and Science from the University of New England any remedial action taken following audits and is involved with tertiary education of of SCA business. The committee was also agricultural students. More recently, he responsible for developing policies for the obtained a Bachelor of Business from Board to consider. Charles Sturt University, and training in Having established the key governance holistic management. processes, the committee was disbanded Mr Wheelwright has recently been appointed by the Board on 23 March 2005. The as a director to the Hawkesbury-Nepean committee’s audit functions have moved Catchment Management Authority Board. to the Audit Committee and broader governance matters have moved to the Mr Wheelright is also Chairman of the Audit Board. The Board’s Business Plan Working Committee of the Board. Group was established to develop the SCA New Appointment Business Plan 2007–2012.
The Minister appointed Andrew Fletcher to the Board on 5 July 2005. Mr Fletcher has had an extensive public sector career and brings to the Board extensive specialist accounting and business management skills.
Sydney Catchment Authority Annual Report 2004–2005 13 Investing in the future
sca organisational structure
Minister for the Environment • June 2005
Board
Lisa Corbyn Chief Executive
Executive Assistant
Graeme Head Managing Director
Ken Elliot Senior Legal Counsel
Rhonda Wheatley Ian Tanner George Dodds Barrie Turner Andrew Bryan Margaret Brodie Ian Landon-Jones Executive Director General Manager General Manager General Manager Executive Director General Manager Executive Director Finance & Procurement Bulk Water Catchment Operations & Environment & Planning Policy & Governance Corporate & Dam Safety Major Projects Property Services
• Finance • Catchment Operations N/W • Executive Support • Dam Safety • Procurement • Catchment Operations S/E • Policy & Corporate Governance • Mining • Compliance • Regulatory Affairs • Energy Management • Information & Incentives • Economics & • Surveying • Programs Performance Monitoring
• Production S/E • Science & Research • Information Management • Production N/W • Environment & Resource Planning • Quality Management • Operations Improvement • Statutory Planning • Human Resources • Hydrology • Communications • Property Services • Systems Planning • Corporate Administration • Technical Services • Strategic Business Planning • Metropolitan Water Plan
14 Sydney Catchment Authority Annual Report 2004–2005 Key Areas of Performances The SCA continues to measure its performance against the key performance indicators, identified in its business plan. Performance for 2004–05 is highlighted below.
Actual Actual Actual Actual Key Performance Indicators Target 2001–02 2002–03 2003–04 2004–05 Operational Overall compliance with Bulk Water Supply Agreement with Sydney Water (%) 97.9 98.5 94.1 95.8 >95 Health-related compliance with Australian Drinking Water Guidelines (%) 100 100 100 100 100 Interruption to water supply (hours) 0 0 0 0 0 Compliance with Dams Safety Committee requirements and Australian National Committee on Large Dams guidelines (%) 100 100 100 100 100 Operating licence clauses for which there is full to high Not yet compliance (%) 91.5 90 83 available 100 Environmental
Environmental release compliance with Water Management Licence (%) 99.8 99.8 98.6 99.9* 100
$ Catchment management per megalitre of water supplied 38.7 34.7 35.2 42.6** No target
Social
Hours lost to industrial disputes per employee 0 0 0 0 0
Lost time injuries (number) 6 4 8 10 0
Lost time days (number) 241 140.5 79 81.5# 0
Complaints (water supply) from wholesale customers 1 0 0 0 0
Economic
Earnings before interest and tax ($m) 37.9 40.3 37.9 34.0 No target
Return on total assets (%) 5.2 5.6 5.1 4.5 No target
Standard & Poor’s Credit Rating A A A A-*** A
* Target not achieved on one day due to operational error at Tallowa Dam. **The amount for 2004–05 is higher than trend due to the reduction in water demand for the year. *** Rating adjustment in consideration of high levels of future capital expenditure and uncertainty regarding the outcomes of IPART’s review of the SCA’s price path. # Ten days relate to injuries occurring in the previous year. Note: ‘Sydney Catchment Authority has been assigned a qualified rating indication of ‘A-‘ by Standard & Poor’s Rating Services. This is not necessarily the unqualified corporate credit rating that would otherwise apply to Sydney Catchment Authority’ (Standard & Poor’s March 2005).
Sydney Catchment Authority Annual Report 2004–2005 15 Investing in the future – Threats to Water Quality Minimised
So that we continue to meet agreed water quality criteria in the short and long-terms, we will achieve the following outcomes over the period 2002–2007
f Threats to water quality will be identified and mitigated according to risk
f Sewage discharges to catchment waters will be reduced
f The quality of stormwater and other urban run-off will be improved
f The sediment load on catchment waters will be reduced
f The risk of adverse impact of fires on water quality will be reduced
f New development will have a neutral or beneficial impact on water quality
f Storages and infrastructure will be operated to deliver water to agreed quality criteria
f Catchment health will be improved through sustainable land use and vegetation management.
01 KEY RESULT AREA
16 Sydney Catchment Authority Annual Report 2004–2005 Investing in the future – Threats to Water Quality Minimised
So that we continue to meet agreed water quality criteria in the short and long-terms, we will achieve the following outcomes over the period 2002–2007
f Threats to water quality will be identified and mitigated according to risk
f Sewage discharges to catchment waters will be reduced
f The quality of stormwater and other urban run-off will be improved
f The sediment load on catchment waters will be reduced
f The risk of adverse impact of fires on water quality will be reduced
f New development will have a neutral or beneficial impact on water quality
f Storages and infrastructure will be operated to deliver water to agreed quality criteria
f Catchment health will be improved through sustainable land use and vegetation management.
Threats to Water Quality Minimised 01 KEY RESULT AREA
16 Sydney Catchment Authority Annual Report 2004–2005 Sydney Catchment Authority Annual Report 2004–2005 17 18 Sydney Catchment Authority AnnualReport 2004–2005 01 KEY RESULT AREA education, incentivesandcomplianceactivities. health throughplanningcontrols,on-groundworks, The SCAinfluencesandmonitorscatchment works torestorecatchmenthealth. to establishprioritiesandimplement Catchments Program(HCP),areused regional centres,andfortheSCA’sHealthy catchments ofSydneyandadjacent the RegionalPlanfordrinkingwater document, ‘ support toolsdevelopedforthedraft risks theyposetowaterquality. Decision pollution sourcesandassessesthe Risk ManagementFramework identifies and waterstorages.TheWater Quality water qualityoutcomesinthecatchments strategies tosecurecatchmenthealthand approach todetermineappropriate Authority (SCA)istousearisk-based A coreroleoftheSydneyCatchment Sustaining theCatchments , The HCP delivers programs to address sewage, stormwater and other sources of pollution in the catchments, with a focus on sustainable land use and vegetation management. The SCA influences and monitors catchment health through planning controls, funding of on-ground works and education. Measures are often taken in collaboration with other stakeholders who collectively own more than 60 per cent of the land within the catchments. The SCA, in partnership with the National Parks and Wildlife Service (part of the Department of Environment and Conservation (DEC)), protects and manages the Special Areas that surround the water storage dams through measures such as land tenure, regulatory control, and fire, pest and weed management.
The SCA also undertakes preventative strategies such as land use planning and development assessment to manage the impacts of future land uses and catchment activities. Between October 2004 and March 2005, the the SCA and Sydney Water to exhibit The comprehensive package of decision SCA consulted other government agencies transparency in a multi-barrier approach support tools that underpin its catchment and community stakeholder groups on designed to minimise risk to public health programs allows the SCA to ensure that the contents of the draft WQRMF. The final from contamination of drinking water. threats to water quality are minimised. version was completed in June 2005. This is achieved through comprehensive The SCA invested its people and resources strategic management of water quality The WQRMF supports our operations, towards the following achievements in 2004–05. from catchment to consumers’ taps. science program, and developing This approach is consistent with the How Risks to Water Quality rectification action plans (RAPs). It will Australian Drinking Water Guidelines Are Managed be reviewed regularly against catchment relating to catchment management and Using the Water Quality Risk audits and against the RAPs once they system management of public water Management Framework are in place. It will also be reviewed as supplies. Integrating a whole of catchment new catchment information, water quality The Water Quality Risk Management approach with appropriate water delivery research, and water quality guidelines are Framework (WQRMF) is the SCA’s and treatment solutions ensures that our incorporated into the framework. overarching strategy to safeguard the quality valuable water resource is managed in the of the bulk raw water that we supply to our The framework brings together several most cost effective manner possible. customers. The framework identifies and former management plans, including the Initiatives to manage risks in the catchments, assesses risks to bulk raw water quality Pollution Source Risk Management Plan and water storages and delivery system and brings together the strategies and tools the Bulk Raw Water Quality Management include acting to rectify damage to water to manage those risks in our catchments, Plan. The SCA had been using those plans quality as a result of existing development, dams and delivery networks. since the organisation was established developing tools to ensure that future land in 1999. use and development are compatible with The WQRMF complements Sydney good quality bulk water, planning for future Water’s Five Year Drinking Water Quality water supplies, and planning for incident Improvement Plan. Together they enable management.
Sydney Catchment Authority Annual Report 2004–2005 19 Investing in the future – Threats to Water Quality Minimised
the Sydney Water Catchment Management Act 1998 (the SWCM Act), and to prepare some of the elements of that plan. We have continued to lead the project to finalise the draft regional plan on behalf of the Department of Infrastructure, Planning and Natural Resources (DIPNR). The regional plan will replace SEPP 58 and other statutory instruments in the catchments. The plan will also require a long-term approach to rectifying existing water quality problems.
During 2004–05, following exhibition of the draft regional plan, the SCA analysed the issues raised and prepared reports and recommendations to DIPNR. The SCA also supported DIPNR in negotiations Water Quality Risk Management Framework with stakeholder groups to resolve Water quality outcomes are delivered In 2004–05, the SCA assessed more than outstanding matters. The negotiations through the HCP, development application 700 development proposals. In most built on the substantial work undertaken in assessments and reviews of local instances the SCA supports council consent the previous year to identify and address environment plans. Effective management to a development. In other instances it stakeholder issues. The result has been of the water supply storages and delivery recommends amendment to the proposal. some minor amendments to the draft plan system is essential to ensure desired water to accommodate the timelines for review of The SCA joined with Wollondilly Shire quality outcomes. local environmental planning instruments Council during the year to defend an by catchment councils. The amendments This approach to managing risks to water appeal against the refusal of a development also provide additional information about the quality is subject to the SCA’s operating application for a rural residential subdivision purpose of the plan and the effect it will have licence and catchment audits, and to close to Lake Burragorang. The Land and on agriculture in the catchments. ongoing monitoring and reporting on water Environmental Court dismissed the appeal, quality and water quantity. principally on the grounds of the risk posed As at 30 June 2005, DIPNR was finalising to water quality. the report to the Minister for Planning on the InfluencING Land Use and gazettal of the draft plan. Development in the Catchments The SCA began working with local The SCA is required by legislation to provide government to see how its geographic The draft regional plan also contains a number of land use planning services to information system (GIS) tracking and an action plan to implement pro-active ensure that land development does not have assessment support tool, the Development strategies such as incentives, works and an adverse impact on water quality in the Assessment Register, might be used education programs. The rectification catchments. to support local government to assess action planning strategy targets the development in the catchment. adverse impacts of existing development Assessing the Impacts of Development on water quality. Rectification action Guiding Development on Water Quality planning builds on the SCA’s current The SCA must assess proposals referred The SCA advises catchment councils rectification activities under the HCP, to it by local government and other state and other state agencies about new discussed in the next section. agencies, and its own development environmental planning instruments that proposals, according to the provisions of could potentially affect water quality. State Environment Planning Policy 58 (SEPP During 2004–05, the SCA made detailed 58). The SCA advises or directs the referral submissions to Wingecarribee, Wollongong and Kiama councils regarding draft local agency on how the development might be environmental plans. designed and managed to minimise the risk to water quality. The SCA also has a major role to facilitate the introduction of a comprehensive regional plan framework, as required by section 53 of
20 Sydney Catchment Authority Annual Report 2004–2005 Rectifying Adverse Impacts of Existing stormwater improvement projects that most f preparation of environmental impact Development benefit river health and water quality. The statements for new plants at Robertson SCA’s stormwater risk-ranking model was and Taralga, and for upgrades of the The SWCM Act and the draft regional completed in 2004–05. It will be used to Bundanoon and Wallerawang sewage plan both require the SCA to prepare set priorities to help councils with future treatment plants. rectification action plans (RAPs). The RAPs stormwater works. must identify and determine priority actions SCA expenditure for 2004–05 on the to rectify or lessen the adverse impacts Work also continued with DEC-sponsored Accelerated Sewerage Program was of existing development on water quality stormwater extension officers, as councils $5.5 million. The program is scheduled to in the catchments. The RAPS will provide implemented revised stormwater continue through to 2007–08. the strategic framework for the HCP, which management plans. An earlier program to Sewerage infrastructure assessed and will continue to formulate and deliver the assist councils with stormwater improvement reticulation improved detailed work plans for the SCA. projects was finalised during the year with the completion of the Blue Mountains and To reduce sewage overflows from pipes and During 2004–05, the SCA developed Goulburn projects. the risks that they pose to the drinking water a decision support system to identify catchments, the SCA has been working with the sources and locations of priority Managing Sewage local councils to assess the performance of pollutants on the scale of small drainage The Sewage Management Program aims existing sewerage reticulation systems and units. Data sets for 15 different factors to reduce threats to water quality in the to determine the need for work to upgrade are being assessed by experts from the catchments posed by reticulated and on-site the systems. SCA, other government agencies such sewage. This is achieved through a variety as the Department of Environment and During 2004–05, the SCA contributed 50 of initiatives. Conservation (DEC), and external agencies per cent of the cost of council investigations such as the Commonwealth Scientific Fast-track upgrades to sewage treatment of Moss Vale, Berrima and Bundanoon and Industrial Research Organisation infrastructure sewerage reticulation systems. The SCA will (CSIRO) and other collaborative research recommend works to increase capacity and The Accelerated Sewage Program helps centres. The assessments were 75 per cent reduce system overflows. local councils to fast-track upgrades to complete at the end of the financial year. The their sewage treatment infrastructure in In the coming year, Bowral, Bundanoon, next phase of the system’s development will conjunction with the NSW Government’s Lithgow and Wallerawang systems will identify the most cost effective rectification Country Towns Water Supply and Sewerage undergo similar investigations. The councils strategies and the priorities that are not Scheme. In 2004–05, a continuing will use the information to plan and set currently being addressed. partnership with local councils (the owners priorities for sewer refurbishment projects. How the Healthy Catchments of the sewerage schemes), the Department The SCA also contributed $15,000 towards Program Achieves its Goals of Energy, Utilities and Sustainability (DEUS), the cost of refurbishing part of the sewer and the Department of Commerce (DoC) The Healthy Catchments Program system in Goulburn’s central business progressed work on sewerage schemes in 2003–2007 (HCP) sets out the SCA’s key district, and $170,000 toward the cost of the Wingecarribee, Goulburn–Mulwaree, strategies to protect water quality and augmenting a sewage reticulation system Lithgow, Shoalhaven and Upper Lachlan manage catchment health throughout its at Mittagong. area of operations. Key HCP programs local government areas. Risks to water quality from on-site focus on managing stormwater, sewage Progress on the Accelerated Sewerage sewage minmised treatment plants, reticulation and on-site Program in 2004–05 included: sewage systems, riparian zones, hazardous The SCA works with local councils to ensure f extensive work to upgrade and expand chemicals, and several programs to protect that the estimated 18,000 on-site sewage Bowral sewage treatment plant, the Special Areas. disposal systems in the catchments are scheduled for completion in 2005–06 Improving Stormwater Quality effectively managed to minimise risks to f selection of the tender for the upgrade of water quality and enhance catchment health. The Stormwater Program helps councils Lithgow sewage treatment plant in the catchments to better manage The On-site Sewage System Management f assessment of options for a new sewage the quality of stormwater that ends up Program continued to focus on two pilot treatment plant at Kangaroo Valley in waterways. The program focuses on projects throughout 2004–05. One project was in the Blue Mountains Catchment and
Sydney Catchment Authority Annual Report 2004–2005 21 Investing in the future – Threats to Water Quality Minimised
the other in the Wollondilly Catchment. The all riparian vegetation areas throughout Wingecarribee Catchment focus was on each council assessing the the catchments. Mapping has helped A joint initiative with Wingecarribee Shire compliance of on-site sewage systems in identify priorities for riparian restoration and Council and the Hawkesbury-Nepean CMA regard to relevant legislation, guidelines and formulate a dedicated incentives program has continued targeting Salix cinerea willows standards, and taking remedial action where for the work. in the Wingecarribee Catchment. necessary. Risks posed by on-site systems Other riparian work for the year included to waterways were ranked and management Kangaroo River Catchment on-ground work within individual catchments plans were developed to maximise and developing an incentives program The SCA has entered into an agreement connection to reticulated sewerage systems. to be launched in 2005–06 for riparian with the Southern Rivers CMA and The SCA received the final report on the management of entire stream lengths. private landholders to address erosion Blue Mountains project in June 2005. The along Brogers Creek. The re-mediation Coxs River Catchment Wollondilly project has been extended by work will include the relatively new six months, to November 2005, to enable The SCA completed six kilometres of technique of installing engineered log the work to be completed. The SCA has riparian rehabilitation work along Coxs River jams which mimic natural log jams in committed $20,000 to the extension. from Cullenbenbong Creek to Jills Crossing. rivers to redirect water flows and help stabilize stream banks. The work will The program is expected to be available Stage two of the Jenolan Caves riparian take place in 2005–06 at a cost of about to local councils across the catchments project to remove sycamore infestation $200,000. The investment will contribute from September 2005. It will help was completed in partnership with Jenolan to significantly improved water quality. councils assess and better manage Caves Trust. It involved mapping sycamore more than 100 on-site sewage systems infestations in the reserve, treating almost 19 The SCA’s Catchment Protection and (see case study ‘Risk Assessment of hectares of sycamores with herbicide, and Improvement Grants Scheme continues to On-site Sewage System’ in KRA 4). constructing erosion barriers with sycamore deliver riparian outcomes (see KRA 4). trunks. Some of the treated areas have Trialling Ecosystem Services Rehabilitating Land through Catchment been replanted with native species and a Protection Scheme In 2004–05 the SCA prepared to trial monitoring program has been established at an ecosystem services scheme as five erosion control points. The Catchment Protection Scheme is a a cost effective method of making collaborative program to rehabilitate land Tenders have been called for riparian service payments to private landholders within the catchments that can affect water restoration work along one kilometre of for managing their land to improve quality through run-off of suspended solids, Farmers Creek. The work involves treating or water quality. The trial outcomes will nutrients and other pollutants. During removing weeds, erecting riparian fencing enable the cost effectiveness of the 2004–05, the SCA provided $620,000 to and revegetating the SCA’s Cooerwull strategy to be considered as part of a the scheme, with the Hawkesbury-Nepean property downstream of Lithgow. The work private landholder program under the CMA and Southern Rivers CMA contributing will begin in September 2005. Rectification Action Plans (RAPs). $501,500 and $218,500 respectively in cash Werriberri Creek Catchment and resources. Protecting, Conserving and Rehabilitating Riparian Areas The SCA completed weed removal and Collecting Unwanted Household re-vegetation work on private property Chemicals In 2004–05 the Riparian Strategy focused on along Werriberri Creek during the past building an implementation framework for From March to May 2005, the SCA, in year. The work was done in collaboration the next two to three years. The framework collaboration with DEC and local councils, with Wollondilly Shire Council, Landcare was influenced by recent scientific research organised and funded a series of household and the Hawkesbury-Nepean Catchment and contemporary approaches to riparian chemical collections. The collections were Management Authority (CMA). Weeds management across Australia. It was subject free of charge for participating communities. removed were mostly blackberry and to an external review by the Cooperative The five collection points were at Braidwood, Radiata Pines, which were replaced with Research Centre (CRC) for Freshwater Crookwell, Goulburn, Picton and Lithgow to approximately 100 native plants from Ecology, which strongly endorsed the SCA’s target major regional centres. the Wollondilly Shire Council Community approach to ‘protect and conserve first, Nursery. The area will be maintained with Residents were asked, via the media and rehabilitate second’. Achievements under follow-up weed removal work. letterbox drops, to take unwanted chemicals the Riparian Strategy included mapping including paints, gas bottles, batteries,
22 Sydney Catchment Authority Annual Report 2004–2005 motor oils, pool and household chemicals, Forming Relationships with Catchment jointly manages those lands with DEC solvents, pesticides, herbicides and poisons Management Authorities according to the Special Areas Strategic to the collection points. Plan of Management. The arrangement The SCA worked with the CMAs during sets priorities and funds programs The successful program collected a total 2004–05 on SCA programs to protect the that use the strengths of each agency of 18,530 kilograms of chemicals from 367 catchments and enhance water quality. to jointly manage water quality and people. Oil was the most common waste Examples that have been discussed maintain a healthy natural ecosystem. collected (27.7 per cent) followed by paint elsewhere in this section are: (22.8 per cent) and lead-acid batteries (18.5 Apart from the National Parks gazetted f The Catchment Protection Scheme with per cent). Substantial amounts of more lands, Special Areas include lands that Hawkesbury-Nepean CMA and Southern hazardous chemicals were also collected. are owned and managed by the SCA. Rivers CMA The SCA manages the lands in close The SCA invested $125,000 in the chemical f Erosion control at Brogers Creek with collaboration with DEC to ensure that works collection program in 2004–05. The Southern Rivers CMA and landholders programs complement and help each participation rate within the communities agency to meet its statutory responsibilities. was much higher than in 2003–04, due to f Riparian Works on Werriberri Creek with Various programs and projects aim to strong promotion of the scheme. Hawkesbury-Nepean CMA, Wollondilly meet goals of water quality and ecological Shire Council and Landcare Collecting the chemicals prevents them protection. Fire management, weed from being dumped in the catchments and f Willow removal in Wingecarribee control, road and trail maintenance and possibly seeping into the waterways. The Catchment with Hawkesbury-Nepean access control programs are major program helps the SCA protect water quality CMA and Wingecarribee Shire Council. features of the plan. Programs within the and the catchment environment. Special Areas are delivered as part of the SCA Lands Strategy within the HCP.
We expect to continue the program in Protecting Buffer Zones around SCA Wildfire 2005–06 at key catchment sites, and to Dams and Reservoirs It is important to protect Special Areas continue working with DEC to develop other Special Areas against wildfire through planning and projects to protect the catchments from Approximately 3,700 square kilometres maintaining fire trails. By 30 June 2005, the hazardous wastes. of Special Areas lands provide a pristine SCA and DEC were in advanced stages of final buffer for water entering dams and negotiating a service delivery agreement. reservoirs. The lands require rigorous The coordination and funding of seasonal management to protect water quality. fire crew services, valued at $1 million, is an Over 50 per cent of Special Areas lands important part of the agreement. have been gazetted under the National Parks and Wildlife Act 1974. The SCA
Sydney Catchment Authority Annual Report 2004–2005 23 24 Sydney Catchment Authority AnnualReport 2004–2005 01 NSW Police toapprehendoffenders. installed surveillancecamerasinthevalleyandisworkingcloselywith and tyresspreadingweedsthroughthecatchments.TheSCAhas further damagedtheenvironment,withvehicletrackscausingerosion broken SCAgatesanderectedillegalcampsites.Illegalaccesshas compromised waterquality. Trespassers inthevalleyhavefrequently where illegalgrazingandferalpigshavecausedsoilerosion The nextmajorpointofsurveillancewasWollondilly Valley action againsttheoffender. and pollutedrinkingwater. TheSCAhassubsequentlytakenlegal erosion. Therewasthepotentialforsoiltowashintostreams land. Trees hadbeenuprootedleavingthelandvulnerableto soil three kilometreslong,whichhadbeenconstructedthroughcatchment One ofthefirstincidentsobservedwasanillegalroad,approximately which theSCAhassinceactedupon. several incidentsofunauthorisedaccessandotherillegalactivity, operation southandwestofthedam.Thesurveillancedetected crew leftWarragamba Dambyhelicoptertocarryoutasurveillance SCA’s workandsurveillanceofillegalactivities.AnSCA on ahelicoptersurveillancetriptoraisepublicawarenessaboutthe In March2005,theSydneyMorningHeraldaccompaniedSCAofficers increased substantially. protect catchmentlandsandwaterwaysthroughaerialsurveillance function moreeffectively, observinglargeareasofthecatchment SCA officerstomonitorcatchmenthealthandperformtheirregulatory difficult toaccessbyland,isavaluablecompliancetool.Itenables Light planeandhelicoptersurveillance,particularlyinareasthatare Investing inthefuture–ThreatstoWater QualityMinimised in arelativelyshorttime.In2004–05opportunitiesandactionsto KEY RESULT AREA Activity intheCatchments Aerial SurveillanceDetectsIllegal
transporter has been fined $ clean up notice to the landowner for the waste to be removed and the an illegal rubbish dump alongside its banks. The SCA has issued a In another incident, there was a direct threat to a creek posed by the matter. environment protectionlicence,DEChasbeenaskedtoinvestigate a catchmentwaterway. Asthesewagepondisrequiredtohavean algae, hadoverflowedandwaspouringdirectlyinto Farmers Creek, Officers alsonotedthatasewageholdingpond,fullofblue-green of mining sediment had been dumped dangerously close to the river. Patrolling over the area, the crew observed that along with rubbish, piles waterways that flow into Lake Burragorang and Warragamba Dam. Coxs River in the Blue Mountains Catchment is one of the main SCA spent$32,000removingwastefromarounditsgatesandfences. eastern fringeofthecatchment.InJanuaryandFebruary 2005,the hazardous wasteandotherrubbishwerevisibledumpedalongthe Hovering oversuburbanland,burnt-out carsandsubstantialloadsof environmental practices. in thecatchmentsappeartohavehadapositiveimpactonpeople’s undertakes boatpatrolsofLakeBurragorang.IncreasedSCA Along withhelicopterandlightplanesurveillance,theSCAalso allow leading togroundbeingerodedormadebare.Suchconditionscan health. Inparticular, brokenfencesandpoorstockmanagementwere negative effectthatpoorfarmingpracticeswerehavingoncatchment In additiontotheillegalactivity, thesurveillancecrewnoted cryptosporidium totravelfromanimalwasteintowaterways. 1 , 5 00 for transporting the waste to the site. Also under the agreement, the contract trespassing and other illegal activity, which develop detailed contract specifications was let to construct a new fire tower for the were responded to on the ground. More for the second stage of the groundwater Metropolitan Special Areas. than $180,000 was spent to maintain or study. Stage two will involve on-ground establish control points, with considerable and desktop projects that focus on the Other initiatives taken by the SCA to investment in gates, locks and barriers, quantity and quality of the groundwater protect life, property and water quality to prevent illegal access in these areas. and its interrelationships with the swamp against wildfire in 2004–05 included fire ecosystem. A tender process for stage two trail maintenance across seven trails in the In the Warragamba, Metropolitan and of the study is in progress. Work is expected Metropolitan and Woronora Special Areas Woronora Special Areas, the SCA spent to begin in late 2005–06. and 72 kilometres within the Warragamba more than 4,000 hours on weekend and Special Areas. The work included out-of-hours patrols using vehicle, boat and The SCA has negotiated access constructing concrete approaches to stream aerial surveillance. agreements with landholders adjoining crossings and stabilising trail surfaces. By Wingecarribee Swamp. The agreements Wingecarribee Swamp and Special Area 30 June 2005, the fire trail network was in give the SCA permission to cross private good condition. The SCA manages Wingecarribee Swamp land to carry out the weed control and and the surrounding Special Areas groundwater programs. Hazard reduction burns were completed in according to the Wingecarribee Swamp the Metropolitan Catchment at Kangaloon Preventing Water Pollution and Special Areas Plan of Management, and near Cataract Dam. SCA lands in through Compliance adopted by the Minister in 2001. the Blue Mountains and Warragamba Compliance activities in the catchments also catchments, including approximately 200 In June 2005, the Minister approved focused on illegal use of catchment lands kilometres of fire trails in Warragamba, funding of $3.8 million for a four–year and waterways (see Aerial Surveillance case Metropolitan and Woronora Special Areas, weed control program designed for the study). In one incident, Penrith Local Court were slashed for longer-term fire protection. long-term management of willow and imposed a fine of $8,000 for pollution of blackberry infestations at the swamp. The Access and activities waters that flow into Shoalhaven River. The SCA assessed the proposed program for pollution was caused by soil and vegetation The SCA has a regulatory role under the possible impacts on public health and the being pushed into the waterway as a result Sydney Water Catchment Management environment. The health assessment was of illegal tree felling. The size of the fine (General) Regulation 2000 and the carried out in consultation with NSW Health, demonstrates how seriously offences such Sydney Water Catchment Management which was satisfied that the program did not as this are taken. (Environment Protection) Regulation 2001 pose a risk to public health. to protect the catchments. The SCA To implement the environment protection To assess the possible environmental manages regulatory activities through its regulation the SCA builds partnerships impacts, the SCA collated and evaluated compliance strategy. and carries out compliance initiatives in information gathered from environmental the catchments with other regulators, To manage and protect Sydney’s groups and ecological surveys. This allowed including DEC, DIPNR and local councils. drinking water we are vigilant about us to map sensitive areas, including the An important role of the partnerships is preventing potentially harmful activities habitat of threatened species, and buffer to identify gaps in existing programs and occurring in Special Areas. In 2004–05 zones. The extensive approval process for develop joint compliance programs. the SCA developed an access policy the weed control program will ensure that and associated procedures to manage impacts from the program are minimised. The SCA has developed six joint compliance access to the Special Areas. In one initiatives with NSW Police and Fisheries. The main on-ground works will begin enforcement operation targeting illegal Networks with NSW Police and local in October 2005. We expect to achieve access to Special Areas, the SCA issued councils address compliance issues sustainable management of the willow and 12 infringement notices and eight warning such as illegal access, land clearing and blackberry populations by June 2009. letters to 40 people found trespassing. dumping within the catchments. Our The preliminary stages of a study into newly developed compliance support In 2004–05, the SCA undertook aerial the effects of Wingecarribee Swamp on system now manages and stores surveillance operations across the groundwater was completed in 2004–05. compliance information (see KRA 4). Woronora and Metropolitan Special The study identified the sources of water Areas and outer catchment areas. The flowing to and from the peat layers of the surveillance detected numerous incidents of swamp. The SCA used the information to
Sydney Catchment Authority Annual Report 2004–2005 25 Investing in the future – Threats to Water Quality Minimised
The taskforce continued to monitor water Table 1 – Compliance activity over three years quality along Tonalli River at sites around Sydney Water Catchment Management (Environment Protection) Regulation 2000* Yerranderie Derelict Mining Field. Equipment Type 2002–03 2003–04 2004–05 was installed to measure any changes to water quality as a result of the rehabilitation Clean up notices 5 8 19 works at Yerranderie Mining Field. The study Notices (s192) requiring information/documents 2 4 2 has captured some wet-weather events but, because of the continuing low flows Penalty infringement notices 10 7 7 in Tonalli River, more data is needed to Pollution prevention notices 1 – – determine impacts of the mining field. The Court matters – – 1 monitoring will continue into 2005–06.
Littering reports referred to DEC 28 190 154 Old Nattai Township and Nattai * Protection of the Environment Operations Act 1997 In 2004–05, the SCA developed a weed management plan for Old Nattai Township Sydney Water Catchment Management (General) Regulation 2000* and the former Nattai coal mine areas for future rehabilitation works on this Type 2002–03 2003–04 2004–05 priority site. In particular, the plan focuses Penalty infringement notices 69 79 118 on treating Madeira Vine and Tacoma Warning letters 41 69 105 infestations at the Old Nattai Township site.
Prosecution – 1 4 Oakdale * Sydney Water Catchment Management Act 1998 Throughout 2004–05, the SCA and DPI developed and implemented a rehabilitation SCA staff who regularly undertake Rehabilitating Derelict plan for the former Oakdale mine site. The compliance activities have been issued Mine Sites plan will be funded by the DPI Derelict with compliance assistance cards. In The SCA continues to work with other Mine Rehabilitation Fund. The SCA and 2004–05, 12 staff members and 11 DEC government agencies, including DEC DEC continued to investigate illegal waste officers attended training about the general and the Department of Primary Industries dumping on the site. regulation, conducting investigations and (DPI), to safeguard the environment from Woodlawn enforcement. burning coal material, stabilise soil, and Managing compliance through signage control sediment runoff from derelict The SCA is a member of the Annual mines to protect water quality. In 2004–05, Environmental Monitoring Panel, which Signage is essential to manage the Special rehabilitation of derelict mine sites included examines environmental and water issues Areas and other SCA lands. SCA signs work at Yerranderie mining field, the Nattai/ from past mining activities at Woodlawn. help people understand and comply with Oakdale mines, Nattai Bulli Valley 1,2,3 and The new landfill (bioreactor) facility in the regulations about access and use of the Brimstone mines. SCA lands. The SCA is reviewing its former mine void began taking waste regulatory and interpretive signage and, The SCA has committed $12,000 to prepare in 2004–05. Bioreactors maximise the in 2004–05, began implementing a new a rehabilitation plan for an unspecified decomposition of solid waste and collect regulatory signage program starting with highly ranked derelict mine in one of the methane gas to be converted into energy the Blue Mountains. catchments. The mine will be identified and sources such as electricity. We continued the rehabilitation plan prepared in 2005–06. to work with the site owners, the bioreactor Managing SCA Land at Braidwood operator, and other government agencies to Yerranderie Erosion control works valued at $130,000 set priorities to rehabilitate the former mine were undertaken at 20 sites on SCA lands at The SCA is a member of the Yerranderie site to enhance water quality. Braidwood to improve water quality. Other Derelict Mines Rehabilitation Taskforce, land management works on SCA property which also includes DPI, DEC, DIPNR and in the Braidwood area, in 2004–05, included local landholders. The 2004–05 projects at pest, weed and fire management programs. Yerranderie included soil conservation works Fire management focused on completing at all four derelict processing areas. The two hazard reduction programs and a work was funded by the NSW Derelict Mines slashing program. Rehabilitation Fund, administered by DPI.
26 Sydney Catchment Authority Annual Report 2004–2005 The Role of Catchment Audits The SWCM Act requires independent audits of the state of the land that constitutes the SCA’s catchment area to be conducted every two years. The third catchment audit, carried out by DEC in 2003, recommended that the SCA map the health of vegetation along river and creek banks in all the catchments. It also recommended that the SCA conduct further studies on algal blooms that can develop in the dams and affect water quality.
The SCA’s response to these audit recommendations are discussed elsewhere in this section. The SCA’s mapping of all the riparian vegetation throughout the catchments has helped set priorities for riparian works under the HCP. Development of a cyanobacteria (blue-green algae) risk management strategy responds to the presence of algal blooms within our dams. The strategy outlines short, medium and long-term responses to algal blooms and forms part of the Water Quality Risk Management Strategy.
At the time of the 2003 audit, the SCA was implementing initiatives to protect and improve catchment health. Programs such as the HCP, science and research programs, and rectification action planning substantially address many of the issues raised in the audit. Many of the audit recommendations are also being addressed as part of the Metropolitan Water Plan. The 2003 audit report is available at www.sca.nsw.gov.au
By the end of the financial year, the 2005 catchment audit was under way to independently assess catchment health for the current period.
Sydney Catchment Authority Annual Report 2004–2005 27 Investing in the future – Sustainable and Reliable Water Supply
So that the security of supply is assured now and in the long-term, we will achieve the following outcomes over the period 2002–2007
f Catchment strategies will be informed by an understanding of the relationship between catchment activities and yield
f Environmental flows specified in the SCA Water Management Licence will be achieved
f Agreed water deliveries will be met
f An agreed long-term demand management strategy will be in place
f Our dams and delivery systems will be efficient, safe and well maintained
02 KEY RESULT AREA
28 Sydney Catchment Authority Annual Report 2004–2005 SUSTAINABLE AND RELIABLE WATER SUPPLY
Sydney Catchment Authority Annual Report 2004–2005 29 30 Sydney Catchment Authority AnnualReport 2004–2005 02 KEY RESULT AREA SCA’s watersupplyassetsiscriticaltoourrole. The responsibleandinnovativemanagementofthe Metropolitan Water Plan. outcomes soughtbytheNSWGovernment’s delivering projectscentraltoachievingthe The SCAalsoplaysaprominentrolein Shire. Shoalhaven CityandWingecaribee of Sydney, BlueMountains, Illawarra, is thentreatedandusedbythepeople ShireCouncil.Thewater and Wingecarribee to SydneyWater, ShoalhavenCityCouncil reliable suppliesofqualitybulk,rawwater Authority (SCA)istodeliversafeand A coreroleoftheSydneyCatchment The responsible and innovative Deep water storage access downstream environmental releases. As management of the SCA’s water supply project manager, the SCA has coordinated The deep storage projects involve installing assets is critical to our role. Water yield is a range of engineering, hydrological, additional infrastructure and modifying maximised from the existing network of environmental and cultural studies to existing infrastructure to access deep water dams and transfer conduits. The release prepare a comprehensive proposal for storage at three of Sydney’s dams. The of environmental flows downstream of the public comment. SCA will establish outlets at the bottom of dams improves the health of the rivers, and dams to access water below current off-take Stage 1 of the SCA proposal recommends protects the wellbeing of the people and levels. Work to access the deep water also raising Tallowa Dam by seven metres with native animals and plants that depend involves constructing new pumping stations the use of radial gates. The proposal also on them. and pipelines. Projects at Warragamba, includes a fishway to provide passage The SCA invested its people and resources Nepean and Avon dams will increase the for native species, and a multilevel towards the following achievements amount of water that can sustainably be off-take system to improve the quality of in 2004–05. taken out of the dams each year by 30 released water. Stage 2 of the proposal will billion litres. This equates to an extra six concentrate on improving the transfer of The Supply of Quality Water months of supply at current usage levels. water to Avon Dam, via a tunnel system. to Customers An ongoing community consultation The SCA has completed planning for the Implementing the Strategies for process, incorporating feedback from deep storage projects and construction has Sydney’s Water Supply the Shoalhaven River Community begun. The projects will be completed in Reference Group, organisations and In October 2004, the NSW Government mid–2006, months ahead of their original individuals, will assist the SCA to put a final released the Metropolitan Water Plan to scheduled completion times. We have been proposal to Government for approval. secure Sydney’s water supply for the next 25 working closely with the Department of years. The plan includes initiatives to reduce Commerce (DoC) and private contractors for Improved water releases to water demand, increase water recycling, the delivery of the deep storage projects. the environment increase water supplies, and improve the health of Hawkesbury-Nepean and Groundwater investigations Environmental flows are waters that the SCA releases from its dams to mimic Shoalhaven rivers. The SCA has been working with the natural flows and help restore ecological Department of Infrastructure, Planning and As part of the plan, the SCA is implementing processes and biodiversity of water- Natural Resources (DIPNR) and DoC to a series of major projects, which focus on: dependent ecosystems. The flows help investigate whether groundwater could be f to reduce algal blooms and the growth accessing deep water storages in used as an emergency drought contingency of aquatic weeds as well as benefiting Warragamba, Nepean and Avon dams water supply for Sydney. Preliminary native fish and aquatic wildlife. f investigating groundwater as an investigations in the Southern Highlands emergency drought water supply have found encouraging groundwater Under the Metropolitan Water Plan, the supplies and the SCA will carry out further Government will increase environmental f considering options to increase studies to determine the extent of the flows to Upper Nepean, Hawkesbury, Shoalhaven water supply transfers groundwater resources. Groundwater Shoalhaven and Woronora rivers. As f improving environmental flows. investigations will continue in the Southern the first phase of the new environmental Highlands, Warragamba, Megalong Valley, flows program, in average years the SCA The projects contribute to the SCA’s Penrith and Illawarra areas. will release six billion litres of water from role to provide a secure water supply for Avon Dam in the Upper Nepean system Sydney, both during the current drought Water transfers within the supply system specifically for environmental purposes. and in the long term, and to protect the As part of initiatives announced in the Improved outlet works are needed at Avon environment. Most of the work in 2004–05 Metropolitan Water Plan, investigations Dam and at several downstream weirs consisted of planning and documentation to are proceeding on the Shoalhaven to be able to make these environmental support the timely delivery of the projects, Transfers Project. The aim is to optimise releases. That work will be completed as with significant physical groundwater the existing system to increase the water part of the deep storage access project at investigations also carried out. Total supply to Sydney and the Illawarra, and the dam. The SCA has developed various expenditure for the SCA was nearly secure supplies for the Shoalhaven and infrastructure options and will consult with $9 million in 2004–05, with up to $90 million Southern Highlands. The project also DIPNR about the volume and timing of the expenditure forecast for 2005–06. focuses on improving the quality of water releases.
Sydney Catchment Authority Annual Report 2004–2005 31 Investing in the future – Sustainable and Reliable Water Supply
Table 2 – Bulk raw water supplied over five years Falling Dam Levels Customer 2000–01 2001–02 2002–03 2003–04 2004–05 Table 3 indicates water storage levels as at Megalitres Megalitres Megalitres Megalitres Megalitres 30 June 2005. supplied supplied supplied supplied supplied A complete record of the dam levels, since Sydney Water 626,672 625,378 631,395 555,649 518,771 November 2001, is available on the SCA Wingecarribee Shire Council 3,487 3,406 4,186 3,442 3,337 website: www.sca.nsw.gov.au. Updated Shoalhaven City Council 79 82 91 85 74 figures are published online after 3.00pm Direct Users – Upper Canal 190 221 218 209 179 every Thursday. Direct Users – 65 67 74 78 70 As Graph 1 shows, available storage on Warragamba Pipeline 30 June 2004 was 47.5 per cent of capacity. Others 82 55 50 106 42 Available storage on 30 June 2005 was 38.3 TOTAL 630,575 629,209 636,014 559,569 522,473 per cent of capacity – a fall of 9.2 per cent.
The SCA transferred a total of 122,500 Helping other Water Supply Agencies to use at another time. At 30 June 2005, the megalitres of water from Tallowa Dam in the Secure Supply council had the maximum credit of 3,200 Shoalhaven system to the Upper Nepean megalitres of water (approximately three As the drought continued throughout and Warragamba dams during 2004–05. months supply) in Tallowa Dam. Due to 2004–05, the SCA maintained security of Since transfers began in the current drought, this arrangement, which has been in place supply and a high standard of service to a total of 260,000 megalitres has been since November 2003, the council needed its customers. The Illawarra and Woronora transferred in the three years from April 2003 to impose water restrictions in its area of components of the supply network to 30 June 2005. This accounts for 22.7 supply for only a very short period in the presented the greatest challenge as they per cent of water supplied for consumption summer of 2004–05. each have only a single source of supply. during the period. We continued to work closely with Sydney Fish River Graph 2 illustrates how the drought has Water to achieve the SCA’s goals. By The SCA worked with the managers of the affected some catchments more severely convening cross-department drought Fish River Scheme throughout 2004–05 by than others. However all of the catchments teams and adapting operations to meet reducing the amount of water it extracted have experienced the drought’s intensity to deteriorating rainfall conditions, we were from Oberon Dam by 40 per cent of some degree. able to satisfy the requirements of the allocation. This was necessary to ensure the operating licence. secure supply of water to other Fish River Pumping water from the Shoalhaven system Scheme customers, such as Lithgow City imposed significant additional costs on and Oberon Shire. our drought operations. It was necessary Reducing Demand for Bulk Water to invest significant additional staff time to plan and manage our operations in drought The SCA supplied a total of 522,473 conditions. Sydney Water absorbed the megalitres of bulk raw water to its customers additional cost of pumping water higher into during 2004–05. This compared with the Blue Mountains than is necessary under 555,649 megalitres in 2003–04. Reduced non-drought conditions. supply and demand were mainly due to mandatory water restrictions. Of the water Shoalhaven City Council supplied, 99.3 per cent went to Sydney The SCA continued to help Shoalhaven City Water. Shoalhaven City and Wingecarribee Council preserve water supply in Tallowa Shire councils accounted for 0.6 per Dam. Under an arrangement agreed to cent, and the SCA’s 60 retail customers by DIPNR, on days when Shoalhaven City accounted for the rest. Table 2 shows the did not require its full daily allocation of amount of water supplied to SCA customers water from Tallowa Dam (as per the water over the last five years. management licence), the SCA reserved the portion of water not required for the council
32 Sydney Catchment Authority Annual Report 2004–2005 Graph 3 shows the difference between Table 3 – Dam levels as at 30 June 2005 actual rainfall in 2004–05, average rainfall Full Net Net Storage Available Available over the last five years, and typical (median) operating annual annual level storage storage rainfall between 1900 and 2002. The storage change change (m)* (ML) (%) (ML) (m) (ML) comparison clearly shows the effects of the Cataract 94,300 -8.87 36,510 38.7 -3.75 -20,350 drought. Cordeaux 93,640 -7.53 47,190 50.4 -3.31 -17,580 Releasing Water to the Environment Avon 146,700 -8.43 69,000 47.0 -1.04 -8,470 In 2004–05 the SCA met its obligations Nepean 40,810 -5.61 24,210 59.3 -1.20 -3,310 under its water management licence Woronora 71,790 -13.06 34,250 47.7 -7.44 -18,770 regarding supply and release of Warragamba 1,857,000 -20.47 647,190 34.9 -3.81 -172,370 environmental flows to sustain river health. Prospect 8,870 -0.92 4,300 48.5 -0.29 -1,400 Hawkesbury-Nepean River Wingecarribee 24,100 -1.43 18,040 74.9 0.72 2,860 With the introduction of Level 3 water Fitzroy Falls 10,000 -0.34 8,300 83.0 0.71 3,510 restrictions, DIPNR varied relevant clauses Tallowa 35,300 -1.83 21,760 61.6 2.26 15,270 in the SCA’s water management licence to Blue Mountains 2,790 ** 2,309 85.7 ** 190 allow environmental and riparian releases Total 2,385,000 913.140 38.3 -220,420 from all its dams within the Hawkesbury- Nepean Catchment to be halved. Reduced * Metres below full storage level. ** There are five Blue Mountains storages. environmental and riparian flows NOTE: The “full operating storage” for Tallowa Dam refers only to the amount of water in the dam that is (22 megalitres per day) from Warragamba available to be transferred to Sydney and the Illawarra. When full, the dam can hold 90,000 ML but only Dam became effective on 8 June 2005. 35,300 ML is available to be transferred. Other water from Tallowa Dam is provided to Shoalhaven City Council for supply to local communities. Water is also released from the dam as environmental flows for Reduced releases from the Upper Nepean the Shoalhaven River. dams and weirs and Wingecarribee Dam took effect from 21 June 2005.
The variation to the licence requires the Graph 1 – Collective movement of water in all SCA dams: SCA to monitor flows at Yarramundi Bridge 30 June 2004 – 30 June 2005 and release additional volumes of water equivalent to daily demand for Sydney 2,600,000 Full operating storage Water’s North Richmond Water Filtration 2,400,000 Plant when flows fall below the 99th 2,200,000 percentile. This represents a very low flow 2,000,000 rate – one that is exceeded, on average, 1,800,000 99 per cent of the time.
1,600,000 Woronora River 1,400,000 55% operating storage Megalitres Due to the continuing drought and water 1,200,000 Available storage restrictions in 2004–05, DIPNR gave 1,000,000 approval for the SCA to suspend the water
800,000 management licence condition that requires high flow water releases (800 megalitres 600,000 per day for three days each year) from 400,000 Woronora Dam.
Supplying Quality Water to Customers 30/04/05 31/05/05 31/08/04 31/10/04 31/12/04 31/03/05 30/06/04 30/11/04 31/07/04 31/01/05 30/06/05 30/09/04 28/02/05 The SCA continued to supply high quality water to its customers in 2004–05. Bulk raw water deliveries fully complied with the health requirements of our operating licence.
Sydney Catchment Authority Annual Report 2004–2005 33 Investing in the future – Sustainable and Reliable Water Supply
Graph 2 – Catchment rainfall: July 2004 – June 2005 250
200
150 Millimetres 100
50
0
Jul 04 Aug 04 Sep 04 Oct 04 Nov 04 Dec 04 Jan 05 Feb 05 Mar 05 Apr 05 May 05 Jun 05 Warragamba Upper Nepean Shoalhaven Prospect Woronora
Remote sites Graph 3 – Actual, average and typical (median) rainfall The SCA developed software in 2004–05 Actual rainfall (mm) Average rainfall last Long term median that routinely captures rainfall data at all 5 years (mm) rainfall (mm) SCA rainfall stations. The data is automat 1,400 ically transferred by telephone or satellite to 1,200 the system’s database and made available to staff each morning via the SCA intranet. 1,000 Staff can quickly identify critical monitoring 800 stations in need of repair and take action. The software also enables faster operational 600 decision making and reporting. 400 In response to public enquiries, the SCA Millimetres 200 began publishing daily catchment rainfall figures on its website. 0
Warragamba Upper Nepean Woronora Shoalhaven Prospect Selecting the Best Quality Water The SCA’s Reservoir Management System collects data relating to inflows, water Dry and unseasonably warm weather Water quality monitoring quality, water temperature and weather caused algal blooms in the Shoalhaven conditions at Lake Burragorang and The Water Quality Monitoring Program dams. A ‘major incident’ was declared for Prospect Reservoir. The information helps covers catchment streams, dams and the Wingecarribee Reservoir in response to determine the storage level from which supply network. The program contains elevated levels of toxin-producing blue-green water should be drawn to ensure its best details of monitoring sites, monitoring algae. During the incident there were a quality. The system incorporates historical, frequency and water quality parameters to number of stoppages to environmental, current and predicted data. The database be tested for each site. The program brings riparian and operational flows, closely links to models of the dams, which enables together the requirements of the SCA’s monitored by the SCA and DIPNR. The water us to predict the behaviour of the dams and various regulatory agencies, customers and supply to Wingecarribee Shire Council and quality of water several days in advance in staff. Shoalhaven City Council was successfully the event of a flood. The three-year project managed and the water treatment plants The existing water quality monitoring was completed and commissioned in continued to treat the raw water to drinking contract expires in October 2005. As at early 2005. water quality standards. 30 June 2005, the new contract had been advertised for tender.
34 Sydney Catchment Authority Annual Report 2004–2005 Table 4 – Water quality targets and compliance years, 70 of the 101 actions recommended by the studies have been completed. Work Target Actual Actual Actual Actual Actual to complete the outstanding recommended % 2000–01 2001–02 2002–03 2003–04 2004–05 actions will continue in 2005–06. % % % % % Health-related We have also completed a study on 100 100 100 100 100 100 compliance decommissioning and disposing of assets Overall compliance that are surplus to the SCA’s needs. The to bulk water supply > 95 96.1 97.8 98.5 94.1* 95.8 findings of the study will be acted upon in agreement the new financial year. *The below target compliance was due to increased alkalinity and hardness in the water. This was caused by the increased percentage of groundwater inflow to dams as a result of the drought. Investing in Capital Improvements at Warragamba Dam
How We Managed SCA Assets An improved and much more Throughout the year, several major comprehensive contract for civil, mechanical projects have been running concurrently Throughout 2004–05, the SCA improved and electrical maintenance of the SCA’s at Warragamba Dam. This has presented its asset management. Robust and water supply assets formed part of the the SCA with a challenge to guarantee detailed management tools, including tender process in April 2005. The contract and maintain water supply from the Total Asset Management Framework, specifically targets the SCA’s unique Warragamba while all owing contractors Asset Strategy, and processes for capital requirements. The contract is underpinned to continue construction work at many works expenditure, were brought to by improved job plans and preventative locations on and around the dam. The final review stage. Substantial progress maintenance instructions. It also SCA achieved the following outcomes was made to address shortcomings incorporates an enhanced ability to analyse at Warragamba Dam in 2004–05. in asset maintenance processes. and report on performance. Auxiliary spillway gates Steady improvements have been made to Work has begun to substantially upgrade how the SCA manages technical information The design and tender documents to the SCA’s computerised maintenance and asset documents. One improvement upgrade the main spillway drum gate and management information system (known is that drawings, sketches, documents and the four radial gates were finalised. The as MAXIMO) to better support the SCA’s manuals for water supply infrastructure are modifications will provide added security maintenance needs. With an expanding now stored and retrieved electronically. for the gates in the event of extreme floods capital works program, new assets are passing through the spillway. We have also improved the processes constantly being added to the system. This to identify, procure and manage critical increases the demand for maintenance Electrical facilities spare parts to optimise operation and plans and schedules for the items. The design and concept to completely maintenance performance. In 2004–05 All of these initiatives will help the rewire and update the 1950s electrical the SCA developed and trialled intranet– SCA’s drive towards best practice technology were completed. The upgrade based project management procedures asset management. includes replacing power, communications to help acquire assets for water supply and control facilities and introducing infrastructure projects. Ensuring the Reliability of Water Supply electronic security measures. Complex Assets Improving Asset Maintenance technical specifications were developed and The Asset Improvement and Reliability tenders have been called. The Water Services Association of Program was developed in 2002–03 Australia began benchmarking the Outlet valves to progress actions arising from a SCA’s asset management processes comprehensive Failure Modes, Effects and Major progress was made to upgrade the against other Australian and international Criticality Analysis study of the condition of primary outlet valves in the Warragamba water utilities in 2003–04. The process the SCA’s mechanical and electrical assets. Dam valve house. The outlets allow water recognises the SCA’s achievements and to be released for Sydney through the helped identify opportunities to improve The study was extended in 2004–05 to all of Warragamba Pipelines. The new valve asset management. As a result we have the remaining civil, mechanical and electrical arrangement allows us to close off water developed and implemented a corrective assets not covered in the earlier analyses. flow in an emergency and, if necessary, actions program. The asset information gained in the process to control the outflow at a particular flow is being uploaded into MAXIMO. Over two rate. Three of the four valve outlets were
Sydney Catchment Authority Annual Report 2004–2005 35 Investing in the future – Sustainable and Reliable Water Supply
fully upgraded in 2004–05. The whole valve Investing in Other Capital Improvements Upper Cascade deep water upgrade project will be completed one year pumping station Warragamba pipelines safety platforms ahead of schedule. Urgent drought-related works will enable The SCA completed the last of the safety The main butterfly valves were manufactured us to tap into previously inaccessible upgrade works for access to equipment in Germany by Erhard Valves. An SCA low-level storage behind Upper Cascade on the Warragamba Pipelines in May 2005. agent inspected the valves to ensure Dam. The SCA is upgrading the outlet and The work, which cost $2.5 million, has been they met specifications before they were constructing a new pumping station at part of an ongoing program to improve the transported to Australia. The first two valves Upper Cascade to provide an additional safety and welfare of employees in their were airfreighted to Sydney to meet the 600 megalitres of water to the upper Blue daily activities. tight program for shutdown in non-peak Mountains. A contract for the work was let supply time. The total estimated cost of the Prospect raw water pumping station in February 2005. The project is expected to upgrade is $10 million. be completed in late 2005, at an estimated Tenders to construct a new water pumping cost of $2 million. Spillway gate stoplog rails station have closed. The pumping station is designed to transfer up to Roadworks Low water levels due to the drought have 1,400 megalitres of water a day, over a provided the SCA with the opportunity to The SCA has a service level agreement with limited period, from Prospect Reservoir complete long-outstanding upgrade works the Roads and Traffic Authority (RTA) for to Sydney Water’s water filtration plant on the guide rails for the spillway gate maintenance and capital works upgrades to at Prospect. This will make supply more stoplogs on the upstream face of the dam. roads within the catchments, including those flexible during planned or unplanned These rails are substantially under water around the SCA’s dams and other facilities. shutdowns of the Warragamba Pipelines. in normal circumstances. The work was Currently, SCA staff access Pheasants Nest completed in February 2005 for $2.1 million, Work will proceed early in 2005–06 and Weir via a very steep and narrow track, with slightly under budget. should be completed by mid to late 2008. overhanging rocks and dangerous drops Lifts and hoists Tallowa Dam fishway and into Nepean River. The track is part of the multi-level off-take original main road going south from Sydney. The three passenger lifts and two goods Major works are in progress to upgrade the hoists within the dam and valve house The concept design for a fishway over road to improve safety. were upgraded to eliminate safety Tallowa Dam and provision to release hazards associated with the unreliable improved quality water was completed Work has also proceeded on a major and dated equipment, which did not meet by April 2005. A travelling container has upgrade of the access road to Avon Dam contemporary standards. The total cost of been designed to lift migrating fish from to make the road safer for SCA staff and the upgrade was $1.9 million. downstream of the dam up into Lake visitors to the dam. Shoulder widening, Yarrunga, where they can then travel to guardrail installation and signage works Crest crane the upper reaches of Shoalhaven River to were well under way by 30 June 2005. Also, The upgrade of the crest crane on spawn. A multi-level off-take will allow us to planning continued for the upgrade of the Warragamba Dam was completed in selectively withdraw the best quality water access road to Woronora Dam. 2004–05. This massive gantry crane (over from Lake Yarrunga to release downstream The SCA and RTA have developed safety 100 tonnes), which travels along rails on the to enhance environmental conditions. audits and a program of maintenance works crest of the dam, provides the lifting needs Although the concept design is complete, for roads and associated infrastructure for the outlet emergency gate and other construction will be undertaken in within the catchments. All data gathered and crest and spillway facilities. As with several conjunction with the raising of Tallowa Dam schedules will be uploaded to MAXIMO to other capital projects at Warragamba, the as part of the Metropolitan Water Plan. optimise on-going roads management. original technology was outdated, with a The cost will depend on the outcome of lack of spare parts and inherent unreliability. Our Commitment to Dam Safety investigations and a final decision on raising The crane’s life has been extended by at the dam wall. The SCA continued to implement its least 40 years. Total cost of the upgrade five year Dam Safety Management was $1 million. Program in 2004–05 to comply with the NSW Dams Safety Act 1978, NSW Dams Safety Committee requirements, and current
36 Sydney Catchment Authority Annual Report 2004–2005 Table 5 – Capital Works Expenditure for 2004–05 Environmental flows Nepean, Warragamba and Woronora Dams 6,739.87 Access deep storage Warragamba 4,338,686.75 Access deep storage Avon 1,267,673.52 Groundwater investigation 1,082,633.31 Increased Shoalhaven transfers 1,267,277.90 Access deep storage Nepean Dam 798,023.23 Warragamba spillway project 3,449,373.90 Warragamba Dam stopboards 302,086.33 Warragamba Dam stopboards storage 128,000.08 Australian National Committee on Large Warragamba Dam upgrade major outlet valve 5,517,957.15 Dams (ANCOLD) guidelines. All SCA dams Warragamba Dam refurbish stoplogs 1,616,774.74 performed satisfactorily in 2004–05 and no Warragamba electrical upgrade 442,642.82 unusual events or major dam safety issues Warragamba Dam upgrade lifts 547,646.43 were identified. Warragamba crest crane upgrade 1,100,043.96 Warragamba security system 6,964.07 The SCA reviewed and updated surveillance Warragamba Dam access ladders 6,266.66 and monitoring practices at all of its dams. Replace valves & ancillary equipment with surge tank Warragamba Dam 10,782.10 It carried out annual inspections for all Warragamba pipeline upgrade flow control 3,229.64 of its dams prescribed under the Dams Warragamba pipeline fencing 66,781.32 Safety Act. As required by the NSW Dams Warragamba spare pipes & fitting 171,415.74 Safety Committee, the SCA prepared Warragamba pipeline install access platforms 536,466.74 five yearly surveillance reports for Upper Fish River Water Supply Transfer 110,650.25 Cordeaux 2 Dam and Bendeela Pondage. Upper Cascades modifications to outlet 962,885.85 The committee reviewed and accepted the Metropolitan Dams modification for environmental flows 1,682.06 reports as meeting its requirements. Upper Avon installation turbidimeter 41,574.70 Avon & Cordeaux upgrade town water 3,735.58 The Dams Safety Committee requires Weather station upgrade 87,659.66 dam safety emergency plans for certain Cordeaux left abutment stairs & walkway 192,041.53 prescribed dams. The SCA revised and Upper Canal stoplogs and trashracks 132,162.20 updated the emergency plans for the 17 Upper Canal drainage upgrade 1,671.98 dams required by the committee. The Upper Canal fencing 71,712.33 updates incorporated recently amended Prospect raw water pumping station 892,632.95 notification protocols agreed to amongst Prospect Reservoir embankment stabilisation 103,158.06 the emergency management agencies. The Prospect Reservoir upgrade scours 51,880.74 plans were issued for use in late 2004. Prospect Reservoir – clay core water supply 46,852.29 Shoalhaven System upgrade SCADA 338,822.12 We are currently reviewing the safety of Avon Tallowa fishway/offtake 141,073.03 and Nepean dams. This is a requirement of Upgrade reticulation system & fire hydrant 135,851.11 the NSW Dams Safety Committee to ensure Wingecarribee Dam safety upgrade 203,676.28 that dams continue to meet the latest safety Braidwood fencing 148,600.61 requirements. The review is assessing the Upgrade Warragamba catchment roads 175,342.31 integrity of the dams against scenarios Upgrade of Avon tower 30,787.72 involving floods and earthquakes in terms Special Areas fencing 336,269.87 of engineering standards, acceptable risk Infrastructure & regulatory signage 75,103.40 criteria, and dam safety guidelines. We Groundwater monitoring equipment 9,288.67 expect to complete the work in 2005–06. Agument hydro & water quality monitoring 112,150.22 Hydromatic network renewals program 289,990.54 The SCA completed detailed risk Satellite telemetry Lake Burragorang 34,104.02 assessment of Wingecarribee Dam during Dam access road upgrade 1,988,550.08 the year in line with current Australian and Dams water crafts 155,208.85 international best practice. The report was Mini hydro generation 2,999.96 reviewed externally and endorsed by an Site office fitouts 28,348.82 expert panel. Office accommodation Penrith 2 47,216.12 Upgrade dam cottages 3,191.92 In 2004–05, the SCA began a peat Upgrade Braidwood cottages 3,795.00 management options study for Upgrade conference facilities 18,937.99 Wingecarribee Dam. The study, which is part Penrith head office relocation 297,651.81 of an overall safety evaluation of the dam, is Information technology system upgrades 531,514.08 expected to be completed in October 2005. Working plant & equipment and general minor projects 169,939.95 An upgrade of the dam to ensure its long- term safety will begin in 2006. 30,646,168.42
Sydney Catchment Authority Annual Report 2004–2005 37 Investing in the future – Sustainable and Reliable Water Supply
Dam deformation surveys, required by the Influencing Mining in the Catchments mining. In 2004–05, the SCA endorsed NSW Dams Safety Committee, are carried Dendrobium Mine’s asset protection The SCA’s Mining Working Group works out on most SCA dams on a one or two plan and reviewed and recommended with other government agencies and yearly basis. The detailed surveys are amendments to the subsidence the owners of active mines, including conducted by the SCA’s newly established management plans of four other mines. new mines, within the catchments. The internal survey unit. Improved survey purpose is to ensure that all mining The SCA continuously monitors the stability methods have resulted in more consistent related matters are consistent with of SCA infrastructure to determine if and reliable results. government regulations and the outcomes predicted movements are being exceeded The SCA works with national and sought by the SCA’s business plan. and to implement contingency plans if international dam management necessary. During 2004–05, underground In 2004–05 the SCA continued to monitor organisations and technical committees coal mining continued beneath the Cataract mining activities in the catchments in to ensure that SCA practices and Tunnel and alongside the Upper Canal consultation with the Department of Primary procedures are in line with best practice and system. A detailed engineering assessment Industries (DPI). We also helped develop benchmarked against them. of these structures led to extensive conditions for future mining and remediation preventative measures being taken to Mining Beneath SCA proposals. Throughout the year, we also protect them against the potential impacts of Infrastructure worked with stakeholders to encourage and mining. No adverse or unexpected impacts oversee the remediation of watercourses Underground coal mining close to or occurred to SCA’s physical infrastructure that have suffered subsidence damage as a within the catchments has the potential assets throughout the year. to cause ground movement that could result of underground coalmining. SCA monitoring of underground mining damage the SCA’s surface infrastructure. The SCA reviews subsidence during 2004–05 found that subsidence and The SCA works closely with other management plans and asset protection its impacts on SCA infrastructure had been government agencies and the mining plans of collieries to protect SCA within predicted levels. Mining protective industry to avoid or mitigate such impact. assets by mitigating the impacts of
38 Sydney Catchment Authority Annual Report 2004–2005 works, such as stabilisation works in Cataract Tunnel, have ensured that SCA assets continue to perform well during and following mining impacts.
All costs incurred by the SCA associated with mining related activities are reimbursed by the mining industry.
The SCA has made a submission to the review of the Mining Act 1992, based on an appraisal of the DPI – Mineral Resources position paper on amendments to the Act. The outcome of the review of the Act is expected in 2005–06.
In 2004–05, the SCA helped prepare papers and submissions on some key mining environmental issues, including an assessment of possible causes of the collapse of Flatrock Swamp and principles for restoring mining activities in Special Areas.
Sydney Catchment Authority Annual Report 2004–2005 39 Investing in the future – Commercial Success
So that we fulfil our statutory, commercial and contractual obligations we will achieve the following outcomes over the period 2002–2007
f Targets outlined in the Statement of Financial Framework will be met
f Statutory and commercial obligations will be reflected in the actions of all staff
f Asset investments will be based on a sound economic and risk framework
f Risks will be systematically identified, assessed and managed.
03 KEY RESULT AREA
40 Sydney Catchment Authority Annual Report 2004–2005 COMMERCIAL SUCCESS
Sydney Catchment Authority Annual Report 2004–2005 41 42 Sydney Catchment Authority AnnualReport 2004–2005 03 KEY RESULT AREA Program continuedtoimproveover2004–05. The SCA’sdeliveryofitsCapitalExpenditure towards the following achievements in 2004–05 The SCA invested its people and resources within appropriategovernanceframeworks. contingent uponallfinancialactivitiesbeing outcomes. Commercialsuccessis and providingfulldisclosureoffinancial in theStatementofFinancialFramework committed tomeetingthetargetsoutlined The SydneyCatchmentAuthority(SCA)is . How We Performed Against Our Improving Capital Expenditure the $56 million project. Other delays have Financial Targets been experienced in sourcing specialised The SCA’s delivery of its Capital Expenditure equipment and plant. Statement of Financial Framework Program continued to improve over 2004–05 The SCA is a statutory body representing with a 16 per cent increase in expenditure Review of Water Prices over the previous year. This represents the Crown. Its role, objectives, functions The SCA provides bulk raw water supplies an increase of 71 per cent in capital and activities are defined within theSydney as a government monopoly service under expenditure over two years. Water Catchment Management Act 1998. the Independent Pricing and Regulatory Section 34 of the Act states that ‘…the Improved management of the program, Tribunal Act 1992. The prices that the SCA is Board is to prepare a statement of financial in 2004–05, included a revised Total Asset able to charge are determined by IPART. The framework for adoption by the Minister and Management Framework, improved price path sets out prices for water supplied the Treasurer. The statement of financial processes, and a new project management by the SCA to Sydney Water, Shoalhaven framework is to include, but is not limited to: methodology (see KRA 7). These initiatives City Council, Wingecarribee Shire Council a) statement of financial purpose, and build upon and incorporate the outcomes of and the SCA’s retail customers. The five year benchmarking exercises and other internal price path that IPART had determined for the b) provisions for or with respect to the and external reviews. SCA in 2000, expired on 30 June 2005. payment by the Authority [SCA] of dividends, tax-equivalents and guarantee Table 7 shows capital expenditure In November 2004, the SCA made a fees, as respectively defined in the compared to budget over the past five submission to IPART’s review of prices statement of financial framework.’ years. The under-expenditure for 2004–05 charged by metropolitan water agencies. was caused by delays on a number of key This was followed with a supplementary The SCA prepared the 2004–05 statement to projects. Rapidly escalating costs within submission, in March 2005, updating the satisfy section 34 of the Act. the construction industry were reflected capital costs the SCA will incur, particularly Commercial Success Outcomes in higher than planned tender prices on a in implementing its Metropolitan Water Plan number of projects. projects. The SCA Business Plan 2002–2007 and the 2004–05 Statement of Financial Framework The main expenditure shortfall was driven In light of the drought, Sydney Water revised identify the SCA’s financial targets. Table 6 principally by a delay in the start of the downward its water demand forecasts. shows the SCA’s performance in relation to Prospect Raw Water Pumping project. The Accordingly, the SCA adjusted its water commercial success for 2004–05. SCA has now resolved the issues causing demand forecast and included the revised delays and John Holland Pty Ltd was forecasts in the supplementary submission recently awarded the tender to construct to IPART.
Table 6 – Performance in relation to commercial success In June 2005, IPART determined to extend the current price path until 30 September 2004–05 Budget Actual Variance % Variance Reasons for variance 2005 or until it determines a new price path Revenue 130.2 126.2 -4.0 -3% Less than target due to for the SCA. continuation of drought and subsequent lower Updated Credit Rating demand for water Each year, the Government requires Operations/ 74.6 75.8 -1.2 -2% Increased expenses services due to the cost of statutory authorities, such as the SCA, to be expenditure pumping water from the reviewed by Standard and Poor’s as part Shoalhaven system of an overall assessment of the financial Other 29.7 28.1 1.6 5% Lower financing position of the NSW Government. The areas of charges, capital process is designed to improve the financial expenditure expenditure funded and economic performance of government through internal cash businesses. In March 2005, the SCA’s credit Dividend Less than target due 25.5 21.9 -3.6 -14% rating was revised from ‘A’ to ‘A–’ due to and tax to reduced demand equivalent for water and hence the scale of future capital expenditure and expense decreased revenue the uncertainty at the time regarding the outcomes of IPART’s review of the SCA’s Debt to total 28% 25% 3% 11% Lower than target due to value ratio less than forecast debt price path.
Sydney Catchment Authority Annual Report 2004–2005 43 Investing in the future – Commercial Success
Managing Service Level Agreements Table 7 – Capital expenditure over five years Capital 2000–01 2001–02 2002–03 2003–04 2004–05 Service level agreements better enable Expenditure $’000 $’000 $’000 $’000 $’000 government departments to share and Budget 44,355 45,410 $23,571 40,132 48,959** use their expert knowledge. The SCA now has three agreements: with Department of Actual 33,326 16,307 12,776 18,883* 21,885** Commerce (DoC), the Department of Lands, * includes $422,700 for replacement of mobile crane at Warragamba recovered from insurance and the Roads and Traffic Authority (RTA). ** excludes Metropolitan Water Plan The agreements have been used for work throughout the catchments. The SCA uses Projected 2006 Total Revenue electronic systems had been developed to accommodate the new standards without the agreement with DoC to help fast-track Budget 2006 the systems being modified. work under the Metropolitan Water Plan. The Water sales 133.47841 agreements will be reviewed in 2005–06. Ancillary services 0.90259 The major areas where the AEIFRS has impact on the SCA were property, plant and The SCA is currently drafting a similar Interest 0.894 equipment, classification of leases, grants agreement with Conservation Volunteers Australia to carry out catchment restoration Budget 2005 expenditure, employee entitlements, and and regeneration works throughout Water sales 125.459 revaluation of assets to ‘fair value’. The SCA’s asset database is already established the catchments. The agreement will be Ancillary services 3.383 to record both the historic cost and the completed in 2005–06. Interest 1.374 re-valued amount for every asset. Managing Panel Contracts New Financial Reporting This has had a major impact on the Minor Works Panel Standards preparation of the 2006 budget. To help The Minor Works Panel was established in In July 2002, the Australian Accounting prepare the budget and implement 2003–04 to coordinate and procure services Standards Board (AASB) and the Financial the new standards, and to ensure a for work with a value of up to $10,000 (GST Reporting Council announced that from smooth transition to the new standards, excluded). The panel is also used during 1 January 2005 all Australian reporting the SCA developed a comprehensive incidents and emergencies for timely entities must comply with the Australian training program tailored to the specific response to urgent situations. equivalents to the International Financial requirements of the SCA Board, executive, Reporting Standards (AEIFRS) issued by senior management, operational staff and The panel helps us to have work completed the AASB. The objective was for Australia to specialist finance staff. to the required standard by pre-qualified contribute to the development of a single set Best Practice Procurement contractors who have received appropriate of international accounting standards. occupational health and safety inductions. The SCA uses its online purchasing The SCA awarded 282 minor works panel In May 2003, NSW Treasury required all management system, government service contracts in 2004–05. government agencies to comply with the level agreements, and the minor works AEIFRS for reporting periods beginning panel system to continuously improve its Legal Panel on or after 1 January 2005. For the SCA, management of contracts and accounts. The Legal Panel contract was established in the AEIFRS will replace the Australian 2001. An open tender process established Generally Accepted Accounting Principles Managing Procurement online a new panel in 2005. The panel consists of (AGAAP) from 1 July 2005. This means MAXIMO, the SCA’s online asset service providers in the areas of environment the SCA’s 2005–06 financial report will be maintenance procurement, financial fixed and planning, property, work place relations, prepared under the new standards with the asset management, tendering and contract litigation, construction law, and tendering comparative data from 2004–05 being re- management system, was upgraded and procurement. stated in terms of the AEIFRS. in February 2005. This has led to SCA Working with Consultants In May 2004, the SCA engaged financial finances and finance-related activities being managed and reported on more efficiently. advisors KPMG to make a detailed For reporting purposes, a consultant analysis of the SCA’s requirements under is a person or organisation engaged the AEIFRS. The analysis confirmed that under contract, on a temporary basis, the SCA’s finance and finance related to recommend or provide higher level
44 Sydney Catchment Authority Annual Report 2004–2005 Graph 4 – Expenditure budget comparison 2005–2006
35
30 Expenditure Category Budget 2005 Budget 2006 25
20
$Million 15
10
5
0 Budget 2005 26.971 0 5.493 2.004 0.301 16.183 2.411 5.755 7.871 1.907 1.692 0.364 3.595 4.618 10.297 14.123 Budget 2006 30.6 0 6.764 2 0.17 20.825 1.962 6.252 1.375 2.151 1.682 0.383 3.613 4.762 10.175 20.441
Fee Grants Energy Licence Property Materials EmployeeRelated InsuranceClaims Transport Insurance Financing Charges Contractors Information Maintenance Depreciation Administration Consultantcies Management specialist or professional advice to help Internal Audits management make decisions. Generally PricewaterhouseCoopers, the SCA’s internal it is the advisory nature of the work that auditor, completed a comprehensive suite differentiates a consultant from other of audit reviews across SCA business contractors. in 2004–05. The reviews focused on the In 2004–05 the SCA did not engage any following business areas: consultants. f Grants and incentives Financial Risk Management f Financial integrity controls Corporate Risk Management f Property management The SCA uses a range of risk management f approaches across all of its major activities SCA access to DRIVES (RTA) and areas of operation. During 2004–05 we f Taxation – GST continued to implement the SCA’s Corporate f Mining – risk and controls diagnostic Risk Management Plan. The planhelps the SCA to focus on the primary risks associated f Systems assurance testing with our core function to deliver quality bulk f Payroll raw water supplies. The plan also guides decisions about budgeting and capital f Occupational health and safety expenditure planning. f Fleet management. During the year, the SCA participated in a NSW Legislative Assembly Public Accounts Committee Inquiry into risk management in the public sector.
Sydney Catchment Authority Annual Report 2004–2005 45 Investing in the future – Building and Sharing Knowledge
So that decision making by the SCA, other public authorities and the community is based on robust scientific, ecological, socio-economic and financial knowledge and information, we will achieve the following outcomes over the period 2002–2007
f We will put key data sets in place relevant to the SCA’s role
f Our decisions and advocacy will reflect the use of available information and knowledge
f Stakeholders will be able to readily access relevant information and its interpretation
f Communities will be able to access and provide input to our capacity building initiatives
04 KEY RESULT AREA
46 Sydney Catchment Authority Annual Report 2005 BUILDING AND SHARING KNOWLEDGE
Sydney Catchment Authority Annual Report 2005 47 48 Sydney Catchment Authority AnnualReport 2004–2005 04 KEY RESULT AREA The SCAbelievesinlifelonglearning. role effectively. support SCAoperationsandperformour methodologies. We usetheknowledgeto innovative technologies,processesand catchments byresearchinganddeveloping continues toexpanditsknowledgeofthe The SydneyCatchmentAuthority(SCA) Investments in quality partnerships with By June 2004, approximately 200 sets of Providing Grants to Groups various industry and stakeholder groups data were stored within the Geographic Catchment Protection and are vital to the SCA’s achievements of Information System (GIS). In July 2004, the Improvement Grants operations and strategic objectives. These system was upgraded to improve access relationships are a key factor in all of our and use of data would be more readily These grants are offered to community healthy catchment programs. Through available to all authorised staff in central organisations to help with projects that them, we share the knowledge to empower and remote locations. Training to use benefit public land or a number of privately others, particularly those who live and work the corporate GIS is being progressively owned lands. An example of beneficiaries in the catchments, to manage the land implemented, with 50 staff members in 2004–05 was the Windellama Landcare and waterways to promote environmental receiving training in 2004–05. group. The group was given a grant of wellbeing. $7,306 to help rehabilitate a popular The launch of the SCA’s intranet mapping recreation area on the Shoalhaven River. The The value of every dollar the SCA invests system, ActiveMap, was another major project aims to control overuse, which has in stakeholder relationships is multiplied achievement for the year. It has enabled staff caused severe erosion, released sediment through the ‘cash or in-kind’ contributions to access our most frequently used data into the river, and reduced the recreational of others. The result is enhanced water sets quickly and efficiently over the intranet value of the area. quality outcomes for our customers and the and to print high quality maps. environment. Many of the projects identified Weeds Why We Provide Grants in this KRA have outcomes in other parts of and Incentives The SCA also continued to fund the removal the report, particularly in KRAs 1 and 2. The SCA uses grants and incentives to help of major weed infestations at Jenolan Caves The SCA invested its people and resources individuals, groups and other agencies in the Wingecarribee Shire, and at Werriberri towards the following achievements in within the catchments to build and share Creek near Warragamba Dam. The funds 2004–05. knowledge and to undertake work that were approved in previous years (see KRA 1). How We Build and Share enhances catchment health and water Providing Grants to Other Agencies Catchment Knowledge quality. The SCA also sponsors events Accelerated Sewerage Program and activities that promote the growth and Establishing a Catchment sharing of knowledge via the national and This program is a partnership between the Information System international water industries. SCA, Department of Energy, Utilities and The SCA’s Environmental and Access Sustainability (DEUS) and Department of Providing Grants to Individuals Compliance Program is supported by a Commerce (DoC). Managed by DEUS, dedicated catchment information system. Catchment Protection Scheme the program helps local councils in the The system allows us to better manage The Catchment Protection Scheme is a catchments to upgrade their sewage and monitor issues relating to a variety of partnership between the SCA and the treatment infrastructure more quickly than activities across the catchments. Completed Southern Rivers and Hawkesbury-Nepean may otherwise have been possible. In in late 2004, the system was built using catchment managements authorities 2004–05, work progressed on sewerage existing databases. It has enabled us to (CMAs). The scheme helps individual schemes in five local government areas (see streamline the way we capture and report on landholders address severe erosion that KRA 1). The SCA has committed $20 million information, as staff can now rapidly enter continues to affect water quality. Once initial to the program over five years. and access comprehensive catchment and work is completed, education field days Other sewerage works compliance data from a single source. are used to promote achievements to the Work was completed on SCA funded sewer We are exploring opportunities to expand broader surrounding area. gauge and model projects at Moss Vale and the system to support other SCA catchment A review of the scheme in 2004–05 Goulburn (see KRA 1). Other grants were processes such as the evaluation and confirmed that it was addressing the approved for similar work at Bundanoon monitoring of land rehabilitation programs. priorities that the SCA and CMAs had set for – Berrima, Bowral and Lithgow. Accessing Geographic Data land rehabilitation work.
Staff access to the SCA’s geographic data has greatly improved since our Corporate Geodatabase was implemented in 2003–04.
Sydney Catchment Authority Annual Report 2004–2005 49 50 Sydney Catchment Authority AnnualReport 2004–2005 04 engineering andsurveyplansvideofiles. The systemalsolinkstorelatedinformationsuchasphotographs, • ActiveMap allowsusersto: training beganinJuneandwillcontinuethroughtotheendof2005. In May2005,theSCAmadeActiveMapavailabletoallstaff. Staff the organisation. system wasuser-friendly, reliable,andmettheneedsof step inthedevelopmentofActiveMapwasdesignedtoensure application wasthenreleasedtocatchmentoperationsstaff. Each was refinedandphaseoneofActiveMapbecameoperational.The of stafffortestingandfeedback.InJanuary2005,theapplication system wascompletedinNovemberandreleasedtoasmallgroup Development ofActiveMapbeganinJune2004.Aprototypethe user-friendly application. staff surveysandproventechnologywerecombinedtodesigna In early2004,afull-timedeveloperwasemployedandtheresultsof commitment andresourcesneededtodeliverthemappingsystem. the endorsementofcatchmentinformationstrategy, camethe geographic informationinthehandsofthosewhoneededit.With provide staffwithasimpleandquickintranetmappingsystem,putting goals oftheSCA’sgeographicinformationsystems(GIS)unitwasto operations anddecision-makingatalllevels.Oneofthelong-standing The SCAusesgeographicinformationtosupportday-to-day Investing inthefuture–BuildingandSharingKnowledge • • interact withgeographicinformationbyturningdatasetsonandoff, KEY RESULT search againstdatasuchasroads,riversandpropertyboundaries. create customisedmapswithinminutes zooming inandoutonareasofinterest AREA ActiveMap
external stakeholders. with otherSCAbusinesssystemsandprovideaccesstoour long-term, wewillresearchopportunitiestolinkActiveMap geographic dataandagreaterchoiceofmaptemplates.Inthe Planned developmentsforActiveMapincludelinkstomore to develop. ActiveMap hasdemonstrateditssuccessandpotentialforthe afastgrowingbandofusersandpositiveanecdotalfeedback, With through asinglesourceofdata. information sharing,andimprovedsupportfordecision-making Benefits totheSCAincludegreateraccessinformation,better provided toremoteuserswithintheSCA. ActiveMap has proven to be the fastest geographic information system Users atallSCAlocationscanaccessActiveMapviatheintranet. future. Thesystemwasdeliveredontimeandcostunder$100,000
Sydney Catchment Authority Annual Report 2004–2005 51 Investing in the future – Building and Sharing Knowledge
The Greater Southern Regional Illegal Education Community f Responding to telephone and email Dumping Squad enquiries from the community about f Funding and implementing the water quality and quantity issues. Based at Shoalhaven City Council, the mentoring stage of the Education Greater Southern Regional Illegal Dumping for Sustainability Professional f Managing and supporting the Squad completed its first year of activities Development Program for environmental Streamwatch program to actively help in 2004–05. The three–year project is educators in the catchments. school and community members monitor jointly funded with DEC and Shoalhaven, water quality in their local waterways. f Supporting local education providers Eurobadalla and Wingecarribee councils. with expertise and funding. Providers Other Agencies Although the focus is on education and included the Blue Mountains World training, the squad investigated 133 f Training council staff and contractors Heritage Institute and managers of the incidents which resulted in 109 fines. about the best ways to plan, implement, Sustaining Wingecarribee Program. maintain and assess effective sediment Providing Sponsorships f Developing a major science program and erosion controls. Training involved The SCA sponsored three community for teachers and students based on the a series of practical workshops education and water industry conferences new Higher School Certificate syllabus organised in conjunction with Goulburn- that were compatible with the SCA’s areas about drinking water quality. Mulwaree Council (see case study objectives for water quality. A full account The program is a partnership with the – Partnering Local Government for of the SCA grants and sponsorships for NSW Department of Education and Sedimentation and Erosion Control 2004–05 is contained in Appendix 12. Training (DET) and the NSW Science case study in this section). Teachers Association. More than 60 SCA Education Resources Streamwatch teachers attended the pilot professional The SCA Education Strategy 2003–2006 development day at Warragamba and The SCA supports more than 40 active aims to positively influence the behaviour of the SCA and DET are developing an Streamwatch groups who collect water individuals and organisations around water interactive version of the program for quality data from up to 80 sites. Data issues and catchment health. Our education teachers to access on the Internet. gathered is quality assured and feeds into activities work hand-in-hand with other SCA the SCA’s water quality monitoring system. strategies such as compliance, on ground f Hosting more than 8,200 primary Streamwatch groups help their broader works, regulation and incentives. and secondary school students at communities to identify and act on local Warragamba Dam. Excursions focused water quality issues. The SCA believes in ‘lifelong learning’. Our on water quality issues in school science, education programs work with people of geography and environment courses. The SCA congratulates the three SCA- all ages and sections of the catchment sponsored Streamwatch members who communities. The Warragamba Education f Participating in the state-wide received awards and presented papers at Program engages in education activities with Environmental Education the fourth National Waterwatch Conference school students and teachers, mainly on-site Coordinating Network (EECN) of at the University of Melbourne. at Warragamba Dam and increasingly government agencies. online at the SCA website. The Community f Chairing the EECN Water Education Education Program works with adults Group to develop the NSW Water in local communities including farmers, Education Plan. The SCA funded and householders, other government agencies, organised a major stakeholder workshop and local councils. for more than 70 water educators and In 2004–05, SCA education activities program leaders from across the state included work with the following to enable their contribution to the plan. stakeholders: Catchment Communities
f Discussing the latest pathogen research findings and their implications with farmers from Kangaroo Valley.
f Catchment officers working with land owners and other stakeholders on a day-to-day basis.
52 Sydney Catchment Authority Annual Report 2004–2005 04 with legislation. wider rangeofsedimentanderosioncontrolmeasurestocomply sediment pollutionwasacriminaloffence.Aftertheworkshops, on-ground staffattendingtheworkshopwereunawarethatcausing erosion controlmeasures.Beforetheworkshops,43percentof progressively usingtheknowledgegainedandadoptingimproved As the workshops advanced, participants demonstrated that they were own constructionworksandregulatoryresponsibilitiesinthisarea. sediment anderosioncontrols.Thetoolswillassistcouncilswiththeir given practicaltoolstoplan,implement,maintainandassess sediment anderosioncontrolswaterquality. Participants were Local practicalexampleswereusedtoemphasisedirectlinksbetween commonly knownas‘TheBlueBook’. industry guidelinesforbestpracticeinsedimentanderosioncontrol, delivered bytheDepartmentofEnvironmentandConservationusing The pilotsupportedandexpandeduponpreviousworkshops Mulwaree, Palerang andUpperLachlancouncils. crews, planners,engineers,andcompliancestafffromGoulburn- ranged fromprivateearthmovingcontractorsandconsultants,toroad protect waterquality. Stakeholdersparticipatingintheworkshops sediment andnutrientsinwaterwaysassociatedregulationsto erosion control.Thepartnershiparosefrommutualconcernsabout series ofpilotworkshopstoimprovelocalpracticesinsedimentand inpartnershipwithGoulburn-MulwareeCouncil,delivereda The SCA, 70 percentofparticipantsindicatedthatinfuturetheywouldinstalla KEY RESULT AREA to ControlSediment andErosion Working withLocalGovernment
catchment officers. to theon-groundregulationofsedimentanderosioncontrolsby the draftregionalplanandHealthyCatchmentsProgram(HCP) program. TheprogramwilldeliveroutcomesacrosstheSCAfrom government withanongoingsedimentanderosioncontroleducation control andwaterqualityoutcomes.TheSCAwillsupportlocal skills, attitudesandbehaviorforimprovedsedimenterosion workplace supportacrossthecatchmentstoincreaseknowledge, The pilothasconfirmedtheneedforfurthertrainingandongoing developers’ calculationsandcompliance. use theresourcesworkshopshadprovidedtocheckandconfirm format andrecommendations.Theyalsoindicatedthattheywould and sedimentcontrolplansthatwereconsistentwiththeBlueBook developments tohavesoilandwatermanagementplanserosion Participating councilsindicatedthattheywouldrequirenew Sydney Catchment Authority AnnualReport 2004–2005 53
Investing in the future – Building and Sharing Knowledge
How We Conduct Science Table 8 – Collaborative science programs and Research Project Research provider Using Science in the Catchments Pathogens The SCA’s Science Program provides a sound basis to manage the catchments Pathogen budgeting for prioritisation of land uses and make decisions about the supply of and rectification actions to reduce public health risks University of New South Wales quality bulk raw water to our customers. The from pathogens drivers of the program include the Sydney Molecular methods for tracing faecal bacteria and Catchment Management Act 1998 and bacteriophages in the catchment University of New South Wales the SCA’s operating licence, together with Molecular methods for tracing faecal viruses in planning and operational programs that the catchment University of New South Wales require specific, robust scientific knowledge Native animals as potential sources of human as a basis for decision making. pathogens in SCA catchments Macquarie University Strategic (longer-term) research is Prevalence of Cryptosporidium oocysts and anti- generally conducted collaboratively with Crytosporidium antibodies in animals in SCA catchments Macquarie University other government agencies, universities, cooperative research centres (CRCs), Cryptosporidium in the Warragamba catchment: Commonwealth Scientific and Industrial genotypes and cell culture infectivity Macquarie University Research Organisation (CSIRO), and Nutrients, Sediments and Pollutants other national and international research providers. Operational (short-term) Integrated water quality planning – least cost University of Technology Sydney research is usually delivered using in-house pollution control resources and external contractors. Sediment budgeting: Metropolitan catchments University of Wollongong
Tailoring Science to the Catchments Nutrient budgeting: Evaluation and enhancement of tools for nutrient budget construction and The Board endorsed the SCA’s Strategic prioritisation of land uses and abatement actions to Plan for Science in June 2005. The plan, reduce nutrient loadings University of Western Sydney which is strongly aligned to our business Identification of major sediment and nutrient sources in needs and government priorities, directs Sydney’s drinking water catchments CSIRO on-going science and research tailored to our activities. The plan is organised around Climate Variability and Extreme Events five science themes that help protect water Impact on water quality by post-wildfire erosion and quality and support the delivery of the nutrient release CSIRO business plan’s intended outcomes. The themes are: Catastrophic events and holocene sedimentation through the Special Areas Macquarie University f pathogens Climate forecasting – multi-site probabilistic forecasting f nutrients, sediments and pollutants for the SCA water supply catchments and its use in reservoir operations University of New South Wales f climate variability and extreme events Methods of forecasting SCA inflows on multiple f ecology timescales using simple indices of climate University of Newcastle f hydrology.
The strategic plan ensures that research Working with External Researchers reviewed by the SCA to ensure the research projects exchange knowledge using objectives are being met. The Collaborative Research Program appropriate tools such as models, focuses on key science questions best The first round of 14 collaborative research workshops, publications and expert advice. answered through one-on-one collaboration projects began in July 2003. Twelve are with with external providers. The projects, which researchers from NSW universities and two are generally for three years, are continually are with the CSIRO. The SCA fully funds the
54 Sydney Catchment Authority Annual Report 2004–2005 program and has allocated approximately f Impacts of recreational access outcomes of the work will support the $3.5 million to the projects over three years. development of guidelines to minimise This project began in September Expenditure on the program in 2004–05 was the impact of on-site sewage systems 2003 and focuses on the impacts of $978,582. Most of the projects are due to be on water quality in the catchments (see recreational activity on our drinking water completed in 2005–06. ‘Risk Assessment of On-site Sewerage catchments and dams. The principal Systems’ case study). Table 8 identifies the program’s first round objective is to establish an appropriate of collaborative projects. Their outcomes decision making framework and support The Cooperative Research Centre for benefit programs discussed in other systems for water agencies to better Freshwater Ecology manage the sustainability of recreational sections of this report, particularly in relation The SCA has been a member of the CRC for access in their catchments and dams. to KRAs 1 and 2. Freshwater Ecology since 1999. This CRC The final report on the project is due to Under a partnership arrangement, the will cease operating in the first quarter of be completed in late 2005. SCA and the university collaborators have 2005–06. Therefore, in 2004–05 the focus f Source water protection successfully attracted federal research was on transferring knowledge from the funding for six other projects under the This project documents the processes CRC’s research programs to other research Australian Research Council Linkage to protect source water and develop a programs. Five programs of particular Projects Grant Scheme. Two of the projects risk management tool to assist decision importance to the SCA will be delivered in have started and four are expected to begin making. The project will develop a early 2005–06. They are: guideline which can be applied to in 2005–06. f Enhancing the effectiveness of riparian catchments that vary in size, landscape Creating Research Alliances zones in managing water quality and other details. In 2004–05 a draft National and International Alliances manual was prepared for comment by f Catchment drivers of water quality and the key members of the CRC for Water quantity: Key risk management issues The SCA is a member of the Water Services Quality and Treatment. The project Association of Australia and the American f Primers on linking water quality is the basis of the SCA’s Water Risk Water Works Association Research to ecological condition Management Framework (see KRA 1). Foundation (AwwaRF). This allows the SCA f Informed management of water transfers f Iron and manganese in Lake Burragorang to keep abreast of the latest developments to minimise environmental impacts in science and research, and to keep This project started in 2003 and f watch on emerging water quality issues studies the generation, chemistry and Ecological and physical characteristics internationally. The relationships also allow transformation of iron and manganese of the Shoalhaven catchment: towards the SCA to collaborate with the national and in raw water in Lake Burragorang. a conceptual understanding. international water industries on significant In 2004–05 the research focused on The eWater Cooperative Research Centre research projects. characterising natural organic matter in Lake Burragorang and investigating The SCA is a participant in the new eWater The SCA’s membership of the CRC the reaction of ferric iron with the natural CRC, which evolved from the CRC for for Water Quality and Treatment also organic matter in the lake. The outcome Freshwater Ecology and the CRC for provides links to the Global Water of the research will enable the water Catchment Hydrology. The eWater CRC Research Coalition, an international treatment process to cope with high aims to be a national and international research alliance including major research levels of dissolved iron and manganese leader in the development, application agencies in the USA and Europe. in raw water, which cause water and sale of products for integrated water cycle management. During 2004–05 the The Cooperative Research Centre for discolouration in the distribution system. SCA helped establish the eWater CRC’s Water Quality and Treatment f Assessment of on-site sewage structure, draft research program and The SCA has a lead role for the This project, which was completed in proposed products. first three of the following projects December 2004, provided a scientific under the CRC for Water Quality and basis to manage on-site sewage Treatment’s Catchment Program. systems within Sydney’s drinking water catchments and to establish appropriate buffer distances between on-site sewage disposal areas and waterways. The
Sydney Catchment Authority Annual Report 2004–2005 55 Investing in the future – Building and Sharing Knowledge
The American Water Works Association Fate and Transport of Surface Water Research Alliance Programs Research Foundation Pathogens in Watersheds The following table shows the areas of focus The SCA was a major contributor to two This three year project, which had a for each alliance and the SCA’s annual projects on pathogens that were completed budget of more than $1.1 million in cash contribution. Project outcomes benefit many in 2004–05. Projects were funded by the and $2.5 million in kind, focused on the of the programs discussed under KRAs 1 AwwaRF, the CRC for Water Quality and Wingecarribee Catchment. The project has and 2 of this report Treatment, the Water Services Association of improved understanding of the sources, The SCA is investigating potential new Australia and other Australian water utilities. fate and transport of pathogens in water alliances with a number of other CRCs. supply catchments. The project, completed in August 2004, will inform the SCA’s rectification action plans and Healthy Catchments Program.
Table 9 – Research alliance programs Organisation Area of Focus Financial contribution FTE (full time equivalent) per year staff contribution per year
Water Services Association f Drinking water $50,000 Nil of Australia f Wastewater f Catchment management f Asset management and regulation AwwaRF f Drinking water quality $30,000 Nil and treatment f Public health f Catchment management
CRC for Water Quality and f Water treatment and distribution $200,000 1.2 Treatment f Catchments and Reservoirs f Public Health f Water quality frameworks and management
CRC for Freshwater Ecology (to f Ecological drivers $350,000 Nil 30 June 2005) f Catchment and river health f Environmental flows eWater CRC (from 1 July 2005) f Catchment management $350,000 1.6 f Management of surface and groundwater resources f Management of ecosystems
56 Sydney Catchment Authority Annual Report 2004–2005 04 more importantthanbufferdistances.Themainconcernwasthe Results oftheprojectindicatedthatsystemmanagementisgenerally The projectwascompletedinDecember2004.overallbudget scenarios andrecordingtheresults. systems hadonwaterquality. Thiswasachievedbybuildingvarious model assessedtheimpactthatmanagingandmaintainingon-site septic systemsandcatchmentwaterways.Theriskmanagement The researchprojectfocusedonarangeofbufferdistancesbetween systems includedabsorptiontrenchesandamendedsoilmounds. on-site sewagesystems.Various meansofdisposalfromthe the effectivenessofbufferzonesinrelationtoseveraltypes A riskmanagementmodelwasdevelopedtoassessandmonitor to protectwaterquality. the effectivenessofbufferzones,whicharefrequentlyusedasbarriers as awastewaterpurifier, theresearchwastoincludeanassessmentof on-site sewagesystemswithinthecatchments.Assoiloftenfunctions quality. Theresearchwastoprovideascientificbasismanage and Treatment toresearchtheimpactofon-sitesewageonwater South Wales, EcowiseEnvironmentalandtheCRCforWater Quality In July2000,theSCAformedapartnershipwithUniversityofNew waterways. by increasednutrientsandpathogensbeingaddedtothecatchment systems aremanagedtoensurethatwaterqualityisnotdegraded within Sydney’sdrinkingwatercatchments.Itisimportantthatthe There aremorethan18,000on-sitesewagedisposalsystems The SCAcontributed$584,000totheproject. for themodelingandassessmentwasmorethan$1.3million. KEY RESULT AREA Sewage Systems Science andOn-Site
presented theprojectresultstoDEP, theUniversityofMaryland Protection (DEP),inApril2004,arepresentativefromtheSCA By invitationfromtheNewYork DepartmentofEnvironmental Association inMarrakech,Morocco,September2004. audience inaspecialworkshoporganisedbytheInternationalWater Quality andTreatment. Theywerealsopresentedfortheinternational through apathogenroadshow, coordinatedbytheCRCforWater The projectresultswerepresentedinthemajorAustraliancities appropriately tosafeguardwaterquality. is vitaltoensurethaton-sitesystemsaredesignedandused a singlesystemorclusterofon-sitesystems.Stakeholdereducation quality. Thevolumeofdischargeperarealandmayoriginatefrom treated wastewaterdischargedbecomecriticaltoprotectingwater the setbackdistanceandunsaturatedsoildepthvolumeof maintenance. However, ifthepotentialforasystemtofailisnegligible, damage causedbyfailureofon-sitesystemsasaresultinadequate and HealthyCatchmentsProgram(seeKRA1). on waterqualityandtoinformtheSCA’srectificationactionplanning the catchments.Itisbeingusedtoassessimpactofdevelopment impact thatwastewaterfromon-sitesystemshasonwaterqualityin The workishelpingtheSCAtodevelopguidelinesminimise journal papers. seminars. TheprojecthasbeenthesubjectofaPhDthesisand10 also beenpresentedatnationalandinternationalconferences (Baltimore) andtheNorthCarolinaStateUniversity. Theyhave Sydney Catchment Authority AnnualReport 2004–2005
57 Investing in the future – Results through Relationships
So that we collaborate effectively and creatively with our partners, customers and the wider community we will achieve the following outcomes over the period 2002–2007
f Agreed outcomes and targets of joint projects will be achieved
f Customer service agreements will be to the satisfaction of the SCA and our customers
f Relevant decisions and work planning will be informed by community views
f SCA and government partners will have agreed priorities and responsibilities for delivering outcomes
05 KEY RESULT AREA
58 Sydney Catchment Authority Annual Report 2004–2005 RESULTS THROUGH RELATIONSHIPS
Sydney Catchment Authority Annual Report 2004–2005 59 60 Sydney Catchment Authority AnnualReport 2004–2005 05 KEY RESULT AREA achievements ofoperationsandstrategicobjectives. industry andstakeholdergroupsarevitaltotheSCA’s Investments inqualitypartnershipswithvarious towards the following achievements in 2004–05. The SCA invested its people and resources regular contactwithourstakeholders. objectives ofthebusinessplanrequires services toourcustomers.Achievingthese high-quality waterandprovide objective istodeliversustainablesuppliesof of catchmentlandsandwaterways.The responsible environmentalmanagement industry andcommunitygroupstoensure The SCAworkswithvariousgovernment,
Consultation to Make the The two year contract with PENGOs expired Senior staff represent their agencies on Best Decisions in October 2004, but the work continued strategic liaison group committees. until the final report to the SCA was The SCA consults with communities on Subsidence Management Plan submitted on 9 March 2005. its operations either directly or through Review Committee committees that represent their interests. Local Government Expert The SCA is a member of the Subsidence Consulting with stakeholders helps the Reference Panel SCA remain transparent and accountable. Management Plan Review Committee, It also allows individuals and groups with The Local Government Expert Reference established by the Department of Primary special expertise or interest in catchment Panel advises on SCA operations as they Industries (DPI) as part of the new approval management to contribute to our operations. relate to local government. Most of the process for underground mining. The 15 local councils in the catchments are committee first met in September 2004. Regional Consultative Committee represented on the panel, which is chaired Items of interest to the SCA in 2004–05 The Regional Consultative Committee by the SCA. One major focus of the panel in included ‘first workings’ applications of three analyses the SCA’s performance and 2004–05 was the SCA’s role in delivering the new collieries and a proposal to mine in advises us on how we are fulfilling our Metropolitan Water Plan and its implications close proximity to Cataract Dam near Appin obligations under the operating licence. for councils in the catchments. (see KRA 2). The committee includes community The other major focus was the draft regional Water Chief Executive representatives from local environmental plan and SCA initiatives, such as the RAPs Officers Committee groups, business groups, farming interests and the Accelerated Sewerage Program, The SCA’s Chief Executive chairs the Water and customers. which are fundamental to the draft plan and Chief Executives Committee and the SCA’s catchment health. In 2004–05, the committee helped develop Managing Director also attends committee the SCA’s grant conditions for property Working Across Government meetings. The chief executive officers meet owners wanting to undertake healthy The SCA has Memoranda of Understanding several times a year to consider and advise catchment initiatives to improve water (MOUs) with Sydney Water, NSW Health, on matters relating to the management quality. The SCA’s input to developing the the Department of Infrastructure, Planning of NSW water resources. In 2004–05, the Metropolitan Water Plan and the revised and Natural Resources (DIPNR) and committee considered a variety of issues draft regional plan have also benefited from the Department of Environment and of interest to the SCA, including stormwater the committee’s input regarding the various Conservation (DEC). Under each MOU, management, algal management and the needs of interest groups within the agencies have formed ‘strategic liaison Metropolitan Water Plan. The committee the catchments. groups’ to consider issues of common also considered the national scheme to Peak Environment interest, coordinate policy and achieve the rate the water efficiency of appliances in Non-Government Organisations outcomes identified in the SCA business a way similar to current energy rating of plan. The inter-agency strategic liaison appliances. Peak Environment Non-Government groups considered the following matters Organisations (PENGOs) help the SCA Inter-Agency Consultation in 2004–05. to plan its activities in the catchments The SCA has consulted extensively across and comment on programs that are of f risks to drinking water Government during the planning and particular interest to major non-government quality (see KRA 1) delivery phases of the Metropolitan Water conservation groups. f water quality incident scenario Plan projects. We have formed partnerships PENGOs’ contribution in 2004–05 focused outcomes and actions (see KRA 7) with DIPNR and the Department of on the SCA’s Healtlhy Catchments Commerce (DoC) to ensure that the f inter-agency collaborative Program and elements of the developing projects under the plan are comprehensively research program (see KRA 4) regional plan. In particular, PENGOs planned and implemented according to provided feedback on the SCA’s emerging f inter-agency Drinking Water the timeframes set by the Government. Rectification Action Plans (RAPs) and Quality Education Action Plan We are also working with Sydney Water, DPI Strategic Land and Water Capability f progress on the draft regional and NSW Treasury to ensure a ‘whole of Assessments, which will be major features plan for the drinking water government’ approach to delivering the plan. of the regional plan. catchments (see KRA 1)
f SCA’s Special Areas Strategic Plan of Management (see KRA 1).
Sydney Catchment Authority Annual Report 2004–2005 61 62 Sydney Catchment Authority AnnualReport 2004–2005 05 treating largeareasoferosion. that manygainedanewunderstandingaboutthetechnicalitiesof Response tothepresentationswasgenerallypositiveanditclear presentation of the plan to treat a major erosion site on Brogers Creek. AnimportantpartofthenightwasSCA’s newly establishedCMA. works inthelocalareaandtogaininsightactivitiesof night tohearabouttheSCA’sforthcomingincentivesplanforriparian Approximately 15landowners,farmersandresidentsattendedonthe farmers andothermembersoftheKangarooValley community. Catchment ManagementAuthority(CMA)heldaninformationnightfor In June2005,asajointinitiative,theSCAandSouthernRivers Investing inthefuture–ResultsthroughRelationships KEY RESULT AREA the KangarooValley Community Discussing RiparianWorks with Part oftheintentioninpresentingBrogersCreekprojectplan awareness ofriparianandriverhealthissuesinKangarooValley. andtoincreasecommunity the SouthernRiversCMAandSCA, main outcomeofthenightwastohighlightrespectiveroles incentives, particularlyforstockmanagementalongcreeks.The landowners expressedtheirinterestinthenewSCAriparian was toopenuppossibilitiesformoreprojectsinthefuture.Some Water Services Association of Australia The project to transfer more water As the agency responsible for several from Shoalhaven River to the Upper major infrastructure projects under the The SCA’s Managing Director is a board Nepean and Warragamba dams also Metropolitan Water Plan, the SCA is member of the peak body of the Australian generated significant media interest, implementing detailed project–specific urban water industry, the Water Services particularly in local communities. The community consultation and Association of Australia. The board provides interest is likely to continue through communication plans. a forum for debate and to communicate the the life of the project to 2008. industry’s views on issues of importance to Publishing Information the urban water industry. Several major articles appeared in Publications produced by the SCA inform metropolitan newspapers during the year, Catchment Management Authorities the community about our activities, increasing community knowledge about responsibilities and the unique nature of the The NSW Catchment Management water quality issues and the way the SCA lands we manage. The SCA produced the Authorities Act 2003 established 13 manages the drinking water catchment. following new publications 2004–05: catchment management authorities (CMAs) Media relations also play a key role in in NSW. The SCA meets with the CMAs f Annual Report 2003–04 incident management. The SCA worked within its area of operations to develop closely with Sydney Water and NSW Health f Annual Environment Report 2003–04 strategic links, share information, and to develop protocols and communication identify complementary and integrated on- f Water Quality Monitoring Report 2003–04 plans to manage incidents, especially water ground programs to support SCA and CMA quality events. The plans and protocols were f Healthy Catchments Program fact sheets objectives (see KRA 1). tested in a cross-agency incident scenario f Drought Breaking Flood fact sheets In 2004–05, the SCA entered into a exercise. memorandum of understanding with the We continued to raise the level of electronic Managing Public Affairs Hawkesbury-Nepean and Southern Rivers publishing, both on CD Rom and the SCA CMAs. The MoU documents the roles and To maximise the effectiveness of the website. Electronic publishing reduces responsibilities of the SCA and each CMA to Government’s communication strategies, costs, paper use and storage requirements. deliver catchment management outcomes. the SCA continues to work with other All SCA publications are available for water-related agencies to collate and deliver download from the internet. This trend will Building Relationships information to the community. Subjects in continue in the coming year, particularly for The SCA continues to build relationships 2004–05 included drought, water restrictions education resources. with other regulators, including and the Metropolitan Water Plan. All of the SCA’s publications, including DEC, DIPNR, NSW Health and local The public exhibition of the draft regional those published only on the website, are government within the catchments. plan was completed in July 2005. The available on request as a printed copy. How We Keep Our implementation of the associated A full list of publications is featured in Stakeholders Informed communications plan was independently Appendix 22. SCA publications are available Communicating through the Media evaluated against International Association by contacting our offices or by visiting of Public Participation benchmarks in the website at www.sca.nsw.gov.au. Media management is vital to communicate October 2004. It was found that overall the SCA’s role and objectives to the SCA website the consultation process had been ‘highly community. The drought has been a key successful, realistic and achievable’ and The SCA website features information focus for the media in 2004–05. Over the that ‘active engagement with stakeholders about the catchments, including dam levels year, we responded to more than 460 and community was achieved’. We and water transfers, and SCA operations. separate media enquiries, almost double the continue to develop education, training and The website also provides access to SCA number received in the previous year. This communication activities in anticipation of publications and education resources. Dam interest is reflected in the media’s coverage gazettal of the plan. level data is updated weekly and catchment of rainfall, dam levels and drought issues. rainfall data is updated on weekdays. The SCA had a key role in communicating The Metropolitan Water Plan, announced Visitors to the website have more than the Metropolitan Water Plan to the public in October 2004, generated a number of doubled in the past financial year. Table 10 and in developing the inter-agency important media announcements for the shows the number of visitors to the website communications strategy. We also had a key SCA including the construction of deep over the past four years. role in producing the ‘Water for Life’ media storage projects at Warragamba, Nepean advertising campaign and the Water for Life and Avon dams. This announcement website www.waterforlife.nsw.gov.au. resulted in significant broadcast coverage.
Sydney Catchment Authority Annual Report 2004–2005 63 Investing in the future
Table 10 – Website visits Journal of Wildfire published the paper in 2004. At 30 June 2005, the CSIRO reported Year Visits on its website that the paper had been the 2001–02 56,708 most downloaded or requested manuscript 2002–03 64,427 from that journal. The document can be 2003–04 164,331 viewed and downloaded from 2004–05 367,163 www.publish.csiro.au. Where We Need to Improve Photography The SCA received eight official complaints The SCA has commissioned photographic in 2004–05, nine fewer than for the previous shoots to record the progress of major year. One of the complaints was from infrastructure works at Warragamba Dam. an SCA customer and seven were from The photography will continue at significant members of the community. Overall, nine points throughout the works and for other complaints were dealt with during 2004–05, infrastructure projects over the coming year. including one complaint carried forward Customer Satisfaction from the previous year. The complaint The community and our customers have carried forward was from a customer about a variety of interests in our facilities and a penalty infringement notice for a breach of operations and a right to expect the best the Sydney Water Catchment Management possible service the SCA can deliver. The Act (General) Regulation 2000. SCA encourages its customers to comment Seven of the new complaints were resolved about the quality of SCA facilities and and one has been carried forward to 2005–06. operations. The comments are recorded to help us better understand what we are doing well and where we need to improve.
What We are Doing Well
The SCA has received positive responses to many of its activities. In particular, our education program for schools continues to be well received by teachers and students. We have also received positive feedback about the SCA website.
An exchange of information between the SCA and Western Australian Water Corporation, in 2004–05, helped the latter to take measures to reduce the level of damage caused to its catchments by wildfire. The information exchange also contributed to the establishment of a water quality monitoring program by Western Australian Water. The program helped protect the waterways from excessive nutrients and a serious problem with algal bloom.
The CSIRO has acknowledged the merit of the SCA paper, ‘The post-fire measurement of fire severity and intensity in the Christmas 2001 Sydney wildfire’. The International
64 Sydney Catchment Authority Annual Report 2004–2005 Table 11 – Complaints dealt with in 2004–05 Complaint Category Complaints Carried Complaints Received Complaints Dealt with Forward From 2003–04 2004–05 2004–05
Website details 0 1 1
Staff/contractors 0 1 1
Picnic area facilities 0 5 5
Warning letters and fines 1 0 1
Water pressure 0 1 1
TOTAL 1 8 9
Table 12 – Status of complaints received in 2004–05 and their categories
Complaint No. Category Received Resolved Source
4294 Picnic area facilities 19/08/04 08/09/04 Community
4295 Staff/contractors 30/08/04 08/09/04 Community
4296 Picnic area facilities 10/01/05 18/01/05 Community
4297 Picnic area facilities 17/03/05 30/03/05 Community
4298 Water pressure 24/04/05 18/05/05 Customer
4299 Picnic area facilities 20/05/05 Open Community
4300 Website details 14/06/05 14/06/05 Community
4301 Picnic area facilities 21/06/05 30/06/05 Community
Table 13 – Summary of the total complaints received since the method of capture was introduced Category 2001–02 2002–03 2003–04 2004–05 Liability Claims (Damage) 5 2 0 0 Catchment Use (Recreational) 1 1 0 0 Staff/Contractors 1 1 1 1 Flood 0 1 0 0 Picnic Area Facilities 0 1 6 5 Development Application 0 1 0 0 Environment & Heritage 1 0 2 0 Water Continuity 1 0 0 0 Water Billing 1 0 0 0 Water Pressure 0 0 0 1 Tender Process 2 0 0 0 Service Providers (Creditors) 1 0 0 0 Tennant Issue 1 0 0 0 Web Site Details 0 0 1 1 Warning Letters and Fines 0 0 2 0 Noise 0 0 1 0 Other 3 0 4 0 TOTAL 17 7 17 8
Sydney Catchment Authority Annual Report 2004–2005 65 Investing in the future – Dynamic, Supportive Workplace
So that we are able to meet the challenges facing the organisation, both now and in the future, we will achieve the following outcomes over the period 2002–2007
f The SCA will provide a safe, healthy workplace and facilities
f Comprehensive workforce planning and management will support the SCA
f SCA staff will contribute to and work within the business planning framework
f The SCA will be a fair and equitable workplace that reflects our values
06 KEY RESULT AREA
66 Sydney Catchment Authority Annual Report 2004–2005 DYNAMIC, SUPPORTIVE WORKPLACE
Sydney Catchment Authority Annual Report 2004–2005 67 68 Sydney Catchment Authority AnnualReport 2004–2005 06 KEY RESULT AREA Staff arecollectivelytheSCA’smostvaluableasset. achievements in2004–05. resources towardsthefollowing The SCAinvesteditspeopleand contribution towardstheSCA’ssuccess. development andtounderstandtheir progress theirprofessionalandpersonal provides itsstaffwithopportunitiesto and personalarrangements.TheSCA practices tohelpthembalancework are supportedthroughavarietyofwork diversity inallareasofitsbusiness.Staff achieving equitablepracticesandcultural safe andhealthyworkenvironmenton places ahighlevelofimportanceon The SydneyCatchmentAuthority(SCA) Our People practices. The aim is to reduce numbers all of the WorkCover benchmarks. This Staff are collectively the SCA’s most and severity of injuries sustained at SCA resulted in a $50,000 (10 per cent) valuable asset. Flexible work practices for sites. An important component of the work reduction in Workers Compensation staff include part-time work arrangements, was the ongoing review of our OHS&R premiums in addition to the discount working from home, family and community procedures and systems. granted in the previous year. The reduction represented the maximum discount service leave, and carers leave. Training Our People available at that stage. The independent Several policies and procedures relating The SCA conducts several OHS& R training auditors found no significant deficiencies to our staff were developed or revised programs annually. Training programs or issues in our OHS&R systems and during 2004–05. All of the new documents include OH&S awareness, entry into made no significant recommendations incorporated equity standards. New policies confined spaces, first aid, and emergency for improvement. The audit was the third and procedures included: response training. of a series of four audits against the requirements of WorkCover’s recommended f SCA Procedure for Confirmation Consulting with Our People of Staff on Probation OHS&R management system. The OHS&R management structure was Keeping Our Staff Healthy f Procedure for Promotional Appeals reviewed in late 2003–04, with the revised to Government Related Employees structure in place by early 2004–05. The The SCA’s investment in the wellbeing of Appeal Tribunal (GREAT) review covered the OH&S Committee staff is underpinned by its business plan f Job Evaluation Policy and Procedure Charter and processes to manage OH&S objective to maintain a ‘dynamic supportive issues. Improved approaches have led workplace’. f Performance Management to more issues being resolved quickly The Employee Assistance Program provides Policy and Procedure at a local level and fewer matters being staff with confidential and independent f Family and Community Services escalated to the committee. The new professional counselling for personal and (FACS) Leave Procedure committee was elected in June 2004 and will work issues. In July 2004, the SCA engaged continue to operate until June 2006. f Carers Leave Procedure. WorkWise Group Pty Ltd to provide Auditing Our Performance this service. Over 2004–05, WorkWise ‘Plain English’ fact sheets about current counsellors provided more than 50 human resource procedures were The Level 3 WorkCover Premium Discount counselling session for staff members. developed and placed on the intranet with a Scheme audit, conducted in February direct link to the relevant human resources 2005, confirmed that the SCA is achieving policy or procedure.
Criteria were developed to appoint first aid officers based on expressions of interest Graph 5 – Number of injuries to SCA employees resulting in lost time or more from staff and a selection process based on than $500 in cost merit principles. No. of other injuries No. of new lost time No. of new lost time occuring in the month injuries liability accepted injuries pending review Staff were informed of the availability of Deaf resulting in more than $500 in cost and Hearing Impaired Network meetings. The meetings are administered by the 3 Employment Equity and Diversity Division of the Premier’s Department. 2 Occupational Health, Safety and Rehabilitation 1 The safety and wellbeing of staff, contractors Number of New Injuries and other stakeholders visiting SCA sites are crucial to the SCA. Throughout 2004–05 we continued to improve the management
Jul 04 Oct 04 Jan 05 Feb 05 Apr 05 of the SCA’s Occupational Health, Safety Aug 04 Sep 04 Nov 04 Dec 04 Mar 05 May 05 Jun 05 and Rehabilitation (OHS&R) programs and
Sydney Catchment Authority Annual Report 2004–2005 69 Investing in the future – Dynamic, Supportive Workplace
The SCA continued its Health Monitoring to allocate resources and determine Evaluating Job Descriptions and Promotions Program, throughout appropriate budgets for 2005–06. Since June 2004 there has been an 2004–05. Initiatives for the year included: The current SCA business plan is approved format for all new or updated f 70 fitness tests for staff members who approaching the end of its term. A position descriptions. All position descriptions fight bushfires or enter confined spaces comprehensive review of the plan is include generic key accountabilities relating proposed to develop a new business plan to Equal Employment Opportunity (EEO), f pre-employment medical for the period 2007–2012. The SCA expects Ethnic Affairs Priority Statement (EAPS) and screening for 32 new staff to complete the review by October 2006. ethical practices and behaviour according f an influenza vaccination The process will involve the SCA Board, to SCA values, Corporate Governance program available to staff in executive, staff and external stakeholders. Framework and Code of Conduct. time for the 2005 winter Reforming the SCA Award Managing Staff Performance f 20 individual workstations Since September 2003, the SCA and the The STEP management system was assessments and adjustments to unions representing its staff: the Australian introduced in 2004–05 in accordance reduce the potential for injuries. Services Union (ASU) and the Association with the 2004 amendments to the SCA Lost Time Injuries of Professional Engineers, Scientists and 2002 Consolidated Award. The system, Managers, Australia (APESMA), have which links performance to pay, involves In 2004–05, there were 10 injuries that worked to develop a ‘framework of reform’ performance and learning agreements being resulted in either lost time, expenses of to finalise the variation to the SCA Award. established between staff and management more than $500 to the SCA, or both. This The variation was approved by the Industrial as well as reviews and final assessments. To compared with nine such injuries in 2003–04 Relations Commission of NSW on 2 August support the new system, all staff participated and five in 2002–03. As a result of the 10 2004 and includes agreed provisions for the in a series of three training modules linked injuries in 2004–05, the SCA lost a total of following actions: to the system. At the end of the financial 71.5 staff working days. Five of the injuries year, 98 per cent of staff had completed their were finalised by 30 June 2005. Of the f transfer all award staff from the performance and learning agreements and remaining five, two occurred in June 2005. former Integrated Pay Scale (IPS) 78 per cent of staff had completed the mid- to the new grading system There was no dominant category of cycle assessment processes. End of cycle incidents that resulted in injury. The injuries f fully implement the Cullen Egan Dell assessments were due to be completed by were caused by a variety of incidents (CED) Job Evaluation system the end of July 2005. including motor vehicle accidents, and falls f implement the Success Through Additional training for managers and that occurred on the way to or from work Enhanced Performance (STEP) supervisors supported their role to manage or in lunch breaks. As no trend or common management system, with a pay staff performance. cause was identified, no special SCA-wide structure that consists of four programs were introduced in response. Every staff member’s performance steps within each grade agreement includes accountabilities relating During the year, four injuries prevented staff f transfer all senior managers to the award. to the SCA’s requirements regarding staff members from attending work or performing behaviour. The required behaviour focuses their usual duties for a week or more. The SCA has developed a suite of human on Equal Employment Opportunity (EEO), resource policies and procedures to reflect There were no reports by contractors of EAPS, OHS&R and ethical practices in line the changes to the award. serious injuries during the year. with SCA values, its Corporate Governance Consulting with the Unions Framework, and its Code of Conduct. Development and Involvement of Our People The Joint Consultative Committee provides Enhancing the SCA’s Skills Base Planning Our Business a forum for peak level discussion between The SCA continued to implement its the SCA and the ASU and APESMA. Agenda Learning and Development Strategy The SCA’s Business Plan 2002–2007 items in 2004–05 included performance throughout 2004–05, to ensure that staff continues to guide our annual work planning management, the transfer of senior skills are aligned with SCA business needs. and budgeting processes. In 2004–05, the managers from contractual arrangements to SCA developed a corporate schedule of the award, and the appointment of first aid work priorities. Staff from across the SCA officers for the SCA. Several of the agenda contributed to the process. The schedule items are discussed within this KRA. of priorities was used by the SCA executive
70 Sydney Catchment Authority Annual Report 2004–2005 06 largely throughweek-long intensivecoursesacrosstherangeof Governance,was amongstthefirstintakeofstudents.Studywas Simone Greenaway, theSCA’sManager, Policy and Corporate first groupofstudentswillgraduateinOctober2005. change andleadership.Thecoursewasfirstofferedin2003the quantitative andqualitativeanalysis,economics,law, organisational disciplines suchaspublicsectormanagement,policy, The schooloffersanExecutiveMastersProgramdrawingonkey development offuturepublicsectorleaders. management skillsinthepublicsector. Itsagendaistoinvestinthe institution focussedonenhancingthebreadthanddepthofpolicy universities andbusinessschools.Itsvisionistocreateaworld-class is aconsortiumofAustralianandNewZealandgovernments, (ANZSOG) wasestablishedwithAllanFels asitsdean.Theschool In 2003,theAustralianNewZealandSchoolofGovernment Appendix 14. staff participationnumbersarecontainedin of learninganddevelopment,togetherwith and professionaldevelopment.Categories and seminarsavailabletostaffforpersonal SCA madevariouscourses,conferences staff supportinitiativesfortheyear. The their managerialskillsweretwoofourmajor program tohelpstaffdevelopandenhance A revisedorientationprogramanda KEY RESULT AREA Opportunity Professional Development support ofscholarshipfunding.Onestaff their professionaldevelopmentwiththe objectives. Two staffmembersadvanced studies withoutcomescompatibleSCA to 12staffmembersengagedintertiary time andfinancialsupportwereprovided for 98staffmembersduringtheyear. Study temporary appointmenttoahigherposition development opportunitiesthrough The SCAprovidedprofessional her work. She hasmadeanetworkofcontactsthatprovedvaluablein and toanumberofcapitalcitiesinAustraliacompleteherstudies. jurisdictions supportingANZSOG.SimonetravelledtoNewZealand my knowledgeandunderstandingofthepublicsector,’ Simonesaid. ‘Ihavemadelife-longfriendsthroughtheprogramandbroadened seeking furtherdevelopment. public sector. Sherecommendstheexperiencetoothermanagers rewarding becauseitistailoredspecificallytomeettheneedsof Simone reportsthatthemastersprogramhasbeenparticularly Zealand attendingANZSOGsessions. premiers ofVictoriaandQueenslandthePrimeMinisterNew participants. Simonesaysthatthelecturerswereimpressive,with Each jurisdictioninvitedleadersinthepublicsectortospeak Sydney Catchment Authority AnnualReport 2004–2005 Simone Greenaway case study). ‘Professional DevelopmentOpportunity’ New ZealandSchoolofGovernment(See Masters ProgramofferedbytheAustralian sector. TheothercompletedtheExecutive Management CoursefortheNSWpublic to participateintheGraduateCertificate member wasawardedanSCAscholarship
71 Investing in the future – Dynamic, Supportive Workplace
Under the University of Western Sydney’s f two of the nine SCA executive All vacant positions that are open to the industry-based program for undergraduates, members were women. public are advertised via the internet, public the SCA engaged three students for sector notices, JobsNSW, the Sydney f the ASU and APESMA participated in the SCA projects that were aligned to the Morning Herald, the Daily Telegraph and new methodology for job evaluation. business plan and complemented the industry specific web pages, such as students’ studies. f EEO groups were represented on those of the Australian Water Association all job selection committees. and Envirojobs. Supporting the Spokeswomen’s Program f the OH&S Committee represented The SCA continued to advertise internally all work areas and both genders for ‘expressions of interest’ for short-term We continued to support the activities of the vacancies to provide career development Government’s Spokeswomen’s Program by f an SCA staff member was an opportunities to staff and for EEO groups providing regular networking opportunities executive member of Diversity NSW. in particular. Staff are encouraged by for women in the SCA. Initiatives EEO Programs managers and peers to apply for these included information sessions, increased opportunities to expand their knowledge and Spokeswomen literature and coordination of In 2004–05, the SCA continued to participate experience. the Government’s Springboard Program for in the National Resource Cadetship Program women. The SCA made one spokeswoman for Aboriginal and Torres Strait Islanders. The SCA reviewed its recruitment policies and one women’s liaison officer available to One placement was made for the period and the new STEP management system staff during 2004–05. November 2004 to February 2005. incorporates EEO principles.
Equal Employment Opportunity The SCA also provided work experience EEO Training for two students. One was a University of The SCA’s Equity and Diversity Management Training in recruitment and selection Western Sydney undergraduate student and Plan 2004–2006 combines the EEO procedures based on equitable practices the other a school student. Management Plan, Disability Action Plan was offered to staff from across all and the EAPS into one management Disability Action Plan levels and occupation groups. Staff who plan. The combined management plan underwent the training became eligible to Strategies from the Disability Action Plan incorporates initiatives and strategies of the participate on selection panels. business plan. are incorporated into the SCA’s Equity and Diversity Management Plan 2004–06. The SCA’s Induction and Orientation During 2004–05 the SCA: They include ensuring that access to Program continued to include EEO f reviewed and implemented strategies SCA facilities, services and information is principles, awareness, practices and ethics. of the SCA’s Equity and Diversity equitable. Action in 2004–05 focused on STEP training was conducted for all staff Management Plan 2004–06 reviewing physical access to current and during the year and included EEO and planned SCA facilities and services for staff cultural diversity matters within the SCA. f developed a management and and other stakeholders. leadership program incorporating Planned EEO Outcomes Adjustments were made to work the principles of EEO, and The SCA has engaged an external provider arrangements for three staff with permanent workplace cultural diversity to conduct a staff survey in July 2005. The disabilities. Also, staff were informed of f survey will cover all aspects of working prepared to review the SCA’s code of the opportunity to attend deaf and hearing life and be benchmarked across the NSW conduct along with the management impaired network meetings administered by public sector. The results of the survey will of probity and privacy issues, and the Premiers Department. established a training program for staff be presented to all staff and reported in the about their rights and obligations. EEO Recruitment SCA 2005–06 annual report. The SCA will incorporate the survey findings in its next Nine people joined the SCA on secondment Major decision making bodies within planning cycle. the SCA, in 2004–05, either represented from other NSW public sector agencies EEO perspectives or were responsible during 2004–05. All those on secondment New accommodation for the SCA’s head for ensuring that they were considered. In represented EEO groups and contributed office is expected to be available by 2007. particular: to SCA business with their knowledge and Planning will take into account the Australian experience. One female staff member from Standard AS 1428.1 – 2001: Design for the SCA was seconded to another NSW access and mobility. government department.
72 Sydney Catchment Authority Annual Report 2004–2005 Table 14 – External appointments highlighting EEO target groups A. Trends in the Representation of EEO Groups % of Total Staff Actual representation EEO Group Benchmark 2002 2003 2004 2005 or Target Women 50% 35% 38% 38% 37% Aboriginal people and Torres Strait Islanders 2% 0.7% 1.0% 2.1% 2.0% People whose first language was not English 20% 14% 13% 16% 14% People with a disability 12% 5% 4% 4% 3% People with disability requiring work-related adjustment 7% 0.8% 1.0% 1.2% 1.1%
B. Trends in the Distribution of EEO Groups Distribution Index EEO Group Benchmark 2002 2003 2004 2005 or Target Women 100% 84% 87% 88% 86% Aboriginal people and Torres Strait Islanders 100% n/a n/a n/a n/a People whose first language was not English 100% 109% 109% 109% 107% People with a disability 100% n/a n/a n/a n/a People with disability requiring work-related adjustment 100% n/a n/a n/a n/a Notes: 1. Staff numbers are as 30 June. 2. Excludes casual staff. 3. A Distribution Index of 100 indicates that the centre of the distribution of the EEO group access salary levels equivalent to that other. Values less than 100 mean that the EEO group tends to be more concentrated at lower salary levels then is the case of other staff. The more pronounced this tendency is, the lower the index will be. In some case the index may be more then 100,indicating that the EEO group is less concentrated at lower salary levels. The Distribution Index is automatically calculated by the software provided by ODEOPE. 4. The Distribution Index is not calculated where EEO group or non–EEO are less than 20. 5. Given the small number of staff who identify themselves as having a disability, privacy issues make it inappropriate for the SCA to report numbers below 20
Ethnic Affairs Priority Statement Table 15 – Trends in the representation and distribution of EEO groups Category 2002–03 2003–04 2004–05 The SCA recognises that the workforce and the community consist of people who have Number of External Appointments (new employees) 1 53 52 40 a diversity of skills and abilities and who offer a variety of perspectives, opinions and Number of EEO questionnaires received 48 45 33 knowledge. Valuing and drawing on this Women 2 30 21 9 diversity enhances the SCA’s performance Aboriginal and Torres Strait Islanders People 0 3 0 and its ability to respond to the community. from a non-English speaking background 3 The many achievements within the SCA during 2004–05 included provision in the People from a non-English speaking award for the public sector Community 3 7 11 2 background Language Allowance Scheme. The scheme People with a disability 3 7 5 0 encourages staff with a second language People from a racial, ethnic or ethnoreligious minority group 3 4 12 3 to provide language support for internal and external stakeholders, where needed. 1. Reductions have not been made for terminations. Expressions of interest were invited from 2. Percentages based on the number of EEO questionnaires received. staff wishing to participate in the scheme. 3. Category percentages are based on number of EEO questionnaires received.
Sydney Catchment Authority Annual Report 2004–2005 73 Investing in the future – Quality Systems and Processes
So that we get it right the first time we will achieve the following outcomes over the period 2002–2007
f The SCA will comply with relevant statutory and regulatory requirements
f An agreed corporate governance framework will inform decision making within the SCA
f The SCA will consistently apply standardised business processes
07 KEY RESULT AREA
74 Sydney Catchment Authority Annual Report 2004–2005 QUALITY SYSTEMS AND PROCESSES
Sydney Catchment Authority Annual Report 2004–2005 75 The Sydney Catchment Authority (SCA) Achievements in Managing energy focused on reducing Motor Vehicle Fuel continues to develop opportunities Environmental Performance the amount of energy used by our The SCA’s use of motor vehicle fuel to improve the efficiency and operations, fleet and sites. Initiatives Achieving Results through Our increased by 1.4 per cent in 2004–05, effectiveness of its quality systems and extended to requiring contractors to use Environment Plan despite a decrease of 2.6 per cent in the processes to enhance performance the most energy efficient equipment number of SCA motor vehicles for the in all areas of operations. Meeting The SCA continued to implement and available. The SCA’s purchase of ‘green corresponding period. The increase in fuel these obligations requires continued report on its Environment Plan 2000–2005. power’ was maintained at 10 per cent of usage was largely the result of additional support from staff and stakeholders. The plan outlines the SCA’s environmental total consumption (excluding pumping major projects undertaken during the year. policy and identifies its environmental from the Shoalhaven system). The SCA invested its people and objectives, strategies and targets over Building mini hydro electricity plants resources towards the following the life of the plan. Many of the initiatives Consumption achievements in 2004–05. The SCA proposes to build mini hydro that contribute to the plan are reported The SCA used approximately 247,044,867 power plants at five of its dams to harness elsewhere in this annual report. Initiatives kilowatt hours of electrical energy during ‘green’ energy from environmental flows include the Healthy Catchments Program 2004–05. These approximate figures will and operational releases. The ‘green’ (KRA 1), environmental flows (KRA 2), be updated in the Annual Environment electricity attracts a premium of between asset management (KRA 2) and heritage Report 2004–05 upon receipt of final energy $30 and $55 per Megawatt hour depending conservation (Appendix 21). A full account invoices for the 2004–05 period, and adjusted on market conditions and operational of progress against the plan for the past accordingly in the Annual Report 2005–06. year will be reported in the SCA’s Annual and environmental flow requirements. Environment Report 2004–2005. The electrical energy usage during 2004–05 In 2004–05 the SCA finalised a detailed represented an approximate increase of technical feasibility study and a financial As a key activity of the Environment Plan, 9.75 per cent from the previous year. The evaluation of development options for the SCA conducts an internal environmental main source of increased energy mini hydro electricity plants on parts audit program each year to improve the consumption was the transfer of water from of its water supply infrastructure. environmental performance of SCA projects the Shoalhaven system to Warragamba and Developments in Our Legislative and activities. During 2004–05 the SCA Nepean dams because of the drought. Over Framework engaged an external expert to review the the year, approximately 242,000,000 kilowatt audit program and will begin to adopt the hours of electricity were consumed in Sydney Water Catchment Management recommendations of the review in 2005–06. pumping water from Shoalhaven, compared Act 1998 Review Using Energy Efficiently with approximately 220,000,000 kilowatt In 2004–05, the Minister reviewed the In 2004–05 our performance continued to compare hours in 2003–04. Table 16 – Electricity use Sydney Water Catchment Management Act The SCA is committed to the efficient use for the past five years 1998 as required under section 75 of the of energy throughout its operations. The favourably against average benchmarks for other Act. The requirement was for the review Energy Management Plan 2001–2006 is to be undertaken five years from the date government agencies. updated each year to reflect progress of assent of the Act. The purpose was to made in the previous year. In 2004–05 determine whether the policy objectives our performance continued to compare were still valid, and whether the terms of the favourably against average benchmarks for Act were still appropriate for securing those 07 other government agencies.
Table 16 – Electricity use for the past five years Source Kilowatt hours of electricity used (approximate) 2000–01 2001–02 2002–03 2003–04* 2004–05 Office buildings 540,853 626,812 704,206 778,841 712,769
KEY RESULT AREA Public buildings 211,617 215,579 201,103 152,428 163,641 Other facilities 136,320 153429 129,831 145,722 140,768 Water supply infrastructure (including Shoalhaven pumping) 4,932,694 4,395,608 60,388,630 223,993,410 246,006,060 Roadway infrastructure Data not reported 30,950 21,398 21,587 21,629 Total electricity 5,821,484 5,422,378 61,445,165 225,091,988 247,044,867 * Figures for 2003–04 are inconsistent with figures for the 2003–04 annual report due to error caused by use of new software in 2003–04. The figures for 2003–04 have been correctly identified in this report.
76 Sydney Catchment Authority Annual Report 2004–2005 Sydney Catchment Authority Annual Report 2004–2005 77 Achievements in Managing energy focused on reducing Motor Vehicle Fuel Environmental Performance the amount of energy used by our The SCA’s use of motor vehicle fuel operations, fleet and sites. Initiatives Achieving Results through Our increased by 1.4 per cent in 2004–05, extended to requiring contractors to use Environment Plan despite a decrease of 2.6 per cent in the the most energy efficient equipment number of SCA motor vehicles for the The SCA continued to implement and available. The SCA’s purchase of ‘green corresponding period. The increase in fuel report on its Environment Plan 2000–2005. power’ was maintained at 10 per cent of usage was largely the result of additional The plan outlines the SCA’s environmental total consumption (excluding pumping major projects undertaken during the year. policy and identifies its environmental from the Shoalhaven system). objectives, strategies and targets over Building mini hydro electricity plants the life of the plan. Many of the initiatives Consumption The SCA proposes to build mini hydro that contribute to the plan are reported The SCA used approximately 247,044,867 power plants at five of its dams to harness elsewhere in this annual report. Initiatives kilowatt hours of electrical energy during ‘green’ energy from environmental flows include the Healthy Catchments Program 2004–05. These approximate figures will and operational releases. The ‘green’ (KRA 1), environmental flows (KRA 2), be updated in the Annual Environment electricity attracts a premium of between asset management (KRA 2) and heritage Report 2004–05 upon receipt of final energy $30 and $55 per Megawatt hour depending conservation (Appendix 21). A full account invoices for the 2004–05 period, and adjusted on market conditions and operational of progress against the plan for the past accordingly in the Annual Report 2005–06. year will be reported in the SCA’s Annual and environmental flow requirements. Environment Report 2004–2005. The electrical energy usage during 2004–05 In 2004–05 the SCA finalised a detailed represented an approximate increase of technical feasibility study and a financial As a key activity of the Environment Plan, 9.75 per cent from the previous year. The evaluation of development options for the SCA conducts an internal environmental main source of increased energy mini hydro electricity plants on parts audit program each year to improve the consumption was the transfer of water from of its water supply infrastructure. environmental performance of SCA projects the Shoalhaven system to Warragamba and Developments in Our Legislative and activities. During 2004–05 the SCA Nepean dams because of the drought. Over Framework engaged an external expert to review the the year, approximately 242,000,000 kilowatt audit program and will begin to adopt the hours of electricity were consumed in Sydney Water Catchment Management recommendations of the review in 2005–06. pumping water from Shoalhaven, compared Act 1998 Review Using Energy Efficiently with approximately 220,000,000 kilowatt In 2004–05, the Minister reviewed the hours in 2003–04. Table 16 – Electricity use Sydney Water Catchment Management Act The SCA is committed to the efficient use for the past five years 1998 as required under section 75 of the of energy throughout its operations. The Act. The requirement was for the review Energy Management Plan 2001–2006 is to be undertaken five years from the date updated each year to reflect progress of assent of the Act. The purpose was to made in the previous year. In 2004–05 determine whether the policy objectives our performance continued to compare were still valid, and whether the terms of the favourably against average benchmarks for Act were still appropriate for securing those other government agencies.
Table 16 – Electricity use for the past five years Source Kilowatt hours of electricity used (approximate) 2000–01 2001–02 2002–03 2003–04* 2004–05 Office buildings 540,853 626,812 704,206 778,841 712,769 Public buildings 211,617 215,579 201,103 152,428 163,641 Other facilities 136,320 153429 129,831 145,722 140,768 Water supply infrastructure (including Shoalhaven pumping) 4,932,694 4,395,608 60,388,630 223,993,410 246,006,060 Roadway infrastructure Data not reported 30,950 21,398 21,587 21,629 Total electricity 5,821,484 5,422,378 61,445,165 225,091,988 247,044,867 * Figures for 2003–04 are inconsistent with figures for the 2003–04 annual report due to error caused by use of new software in 2003–04. The figures for 2003–04 have been correctly identified in this report.
Sydney Catchment Authority Annual Report 2004–2005 77 Investing in the future – Quality Systems and Processes
Graph 5 – Operating licence compliance over five years
100 Full/High Partial Low Non Compliance Insufficient Information
90
80
70
60
50
40
30
20
10
0 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004
objectives. The Minister’s report was tabled was found to be ‘high’ or ‘full’ in 83 per The Privacy Management Project, approved before both houses of Parliament on cent of audited clauses. There were in June 2005, has allocated funds of 9 December 2004. The review confirmed eight ‘partial-compliances’ and four $75,000 to review and action the SCA’s that the Act’s objectives remained ‘low-compliances’, with no areas of Privacy Management Policy, procedures appropriate. It identified some refinements ‘non-compliance’ identified. The SCA is and related matters. The work is expected to that may enhance the Act’s effectiveness taking action to improve performance in take place in 2005–06. and these are being considered. areas of ‘partial’ and ‘low compliance’. Processing Freedom of Operating Licence Review A comprehensive compliance program Information Requests helps the SCA to monitor and report on The SCA’s operating licence is subject to a The SCA is committed to ensuring that progress against the operating licence. mid-term review and an end-of-term review its decision making remains transparent by IPART to determine whether the licence Protecting Stakeholder Privacy and that members of the community have is fulfilling its objectives. The reviews also access to appropriate documents. Key Working with the community and other cater for any other issues that need to be documents are available through our stakeholders is an important feature of SCA considered. The end-of-term review of the website and communications unit. The SCA operations. Information that individuals and licence is in progress. It is to be completed received one new request for documents organisations supply to the SCA helps us by the end of 2005 to allow for a new under the Freedom of Information Act 1989 to provide superior services, undertake our operating licence to commence on during 2004–05 and the application was regulatory responsibilities and promote 1 January 2006. granted in full. No requests for information a healthy environment now and for the were brought forward from 2003–04 and Operating Licence Audit future. The Privacy and Personal Information no Ministerial Certificates specifying that a Protection Act 1998 ensures that information The annual audit of the SCA’s operating document was restricted were issued. supplied to the SCA is used according to licence reported that, ‘The SCA has strict guidelines. In 2004–05 there were no A full account of Freedom of Information managed its resources to achieve internal reviews conducted under section 53 requests over five years is contained predominately high to full compliance of the Privacy Act. in Appendix 7. with the operating licence.’ Compliance
78 Sydney Catchment Authority Annual Report 2004–2005 Process Improvement Responding to Incidents Managing SCA Property
Developing the Business As in past years, the SCA responded to Accommodation Management System various incidents throughout 2004–05 and The SCA is updating its accommodation all incidents were managed according to The SCA continued to develop its Business management strategy under the the SCA’s incident management process. Management System throughout 2004–05. Government’s Total Asset Management In line with its philosophy of continuous The system caters for all SCA processes guidelines. The update is based on improvement, in 2004–05 the SCA relating to the management of SCA finances, the SCA’s 2003–04 review of its office introduced refresher incident management staff, and operations. One of the main accommodation needs. Work to consolidate training. Fifteen staff members undertook aims of the system is to help implement the SCA’s head office in one building in the refresher training, which is ongoing and strategies within the business plan. Another Penrith continued, with tenders to supply helps staff keep their incident management aim is to apply our business processes office space currently being evaluated. more consistently across the SCA. Over the knowledge and skills current and to respond year, the management system continued to to any incidents efficiently and effectively. The SCA continued working on the proposed building at Warragamba Dam document our key policies and procedures. During the year a communication desktop to accommodate office space and the New policies, procedures and other relevant scenario exercise was conducted between visitors information centre. Work included documents will be added to the system as the SCA, Sydney Water and NSW Health fine-tuning the design of the building they are developed. to further test communication protocols to ensure that energy efficiency and associated with water quality incidents. The Business Management System space requirements are optimised. The The scenario identified a number of framework was finalised in 2004–05. This SCA’s accommodation needs in the opportunities to improve communication paved the way for our intranet site to be Campbelltown area were also explored. re-designed to enable more structured during an incident. Work is being undertaken access to the material published on collaboratively by the three agencies to the site. The re-designed site will be improve communication protocols. launched in September 2005. The intranet continues to be the principal medium through which the SCA communicates its policies and procedures to staff.
Enhancing Project Management
In 2004–05 the SCA established a corporate program office and developed a standard project management methodology to improve the management and outcomes of SCA projects, many of which cost millions of dollars. The first stage of the framework was almost complete by the end of June 2005. The investment to improve project management includes new management methods, guidelines, tools and a project management intranet site for staff. Training packages for staff who manage SCA projects will commence in early 2005–06. The new initiative will increase efficiency and reduce risks associated with project management.
Sydney Catchment Authority Annual Report 2004–2005 79 Investing in the future
Land A strategic information and technology management plan has been drafted for In 2004–05, the SCA began developing new the period 2005–10 to support the SCA’s lease documents and a new leasing regime business plan and operations. More than 40 for its properties with the emphasis on staff contributed to the development of the managing land for good water quality. The Information and Technology Strategic Plan. new arrangement will take effect in 2005–06 when more SCA land in the Braidwood area The year also saw further development will be offered for lease to the public. of the SCA’s capacity for recovery and back-up of data stored on the network. Disposals Standard procedures for responding to The SCA did not dispose of any lands service requests from staff were established during 2003–04. to increase the efficiency of the IT role. A high-speed radio LAN (local area network) Managing Information replaced the existing links between the three and Technology SCA offices in Penrith to increase the data The SCA’s management of information and transfer speed between sites. A new storage technology encompasses the management area network was installed to provide of SCA records, the SCA library and SCA a significant increase in online storage information technology (IT). capacity. Processes to rationalise data storage and prevent duplication of stored Records information are being developed. The SCA completed the planning phase for revised records management to comply with the NSW State Records Act 1998. New processes will manage the SCA’s electronic, paper, video and photographic records and plans. The project is included in the SCA’s Statement of Financial Framework.
The SCA Library
In 2004–05, the SCA streamlined its approval process for purchasing library material and subscribing to journals, newspapers and memberships to professional organisations. In 2005–06, further work will improve staff access to major scientific libraries in Australia and overseas.
Information Technology
Collating multiple sources of information and providing them in a readily accessible format is an important function of the SCA’s IT systems. The purchase of appropriate software and hardware during 2004–05 has strengthened the SCA’s ability to analyse consolidated data and improved the levels of staff access to corporate information through applications such as the Internet, intranet and Citrix.
80 Sydney Catchment Authority Annual Report 2004–2005 Financials
Sydney Catchment Authority Annual Report 2004–2005 81 Investing in the future
82 Sydney Catchment Authority Annual Report 2004–2005 Sydney Catchment Authority Annual Report 2004–2005 83 Investing in the future
84 Sydney Catchment Authority Annual Report 2004–2005 SYDNEY CATCHMENT AUTHORITY STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2005
2005 2004 Note $’000 $’000
Revenues from ordinary activities 2 126,170 125,370 Expenses from ordinary activities, excluding borrowing costs expenses 3 (91,202) (86,309) Borrowing costs expenses 4 (13,127) (13,039)
Surplus from ordinary activities before income tax expense 21,841 26,022
Income tax expense relating to ordinary activities 5(a) (5,977) (7,101)
Surplus from ordinary activities after related income tax expenses 19, 21 15,864 18,921
NON-OWNER TRANSACTION CHANGES IN EQUITY Net Increase in asset revaluation reserve 8, 21 25,265 -
TOTAL REVENUES, EXPENSES AND VALUATION ADJUSTMENTS RECOGNISED DIRECTLY IN EQUITY 21 25,265 -
TOTAL CHANGES IN EQUITY OTHER THAN THOSE RESULTING FROM TRANSACTIONS WITH OWNERS AS OWNERS 21 41,129 18,921
[The accompanying notes form part of these financial statements]
Sydney Catchment Authority Annual Report 2004–2005 85 Investing in the future
SYDNEY CATCHMENT AUTHORITY STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2005 2005 2004 Note $’000 $’000 Current assets Cash assets 6 13,542 31,256 Receivables 7 13,624 13,845 Other assets 9 2773 1,787
Total current assets 29,939 46,888
Non current assets Property, plant and equipment 10 741,280 696,497 Tax asset 4,021 2,343
Total non current assets 745,301 698,840
TOTAL ASSETS 775,240 745,728
Current liabilities Payables 11 35,271 28,340 Interest-bearing liabilities 12(a) 34,912 8,810 Provisions, excluding income tax liabilities 13(a) 18,774 21,226 Tax liabilities 5(b) 844 1,507
Total current liabilities 89,801 59,883
Non current liabilities Interest-bearing liabilities 12(b) 151,073 177,500 Provisions, excluding income tax liabilities 13(b) 7,504 7,820 Tax liabilities 1,031 436
Total non current liabilities 159,608 185,756
TOTAL LIABILITIES 249,409 245,639 NET ASSETS 525,831 500,089
EQUITY Accumulated Funds 21 500,566 500,089 Asset Revaluation Reserve 8, 21 25,265 - TOTAL EQUITY 525,831 500,089
[The accompanying notes form part of these financial statements]
86 Sydney Catchment Authority Annual Report 2004–2005 SYDNEY CATCHMENT AUTHORITY SYDNEY CATCHMENT AUTHORITY STATEMENT OF FINANCIAL POSITION STATEMENT OF CASH FLOW AS AT 30 JUNE 2005 FOR THE YEAR ENDED 30 JUNE 2005 2005 2004 Note $’000 $’000 2005 2004 Current assets Note $’000 $’000 Cash assets 6 13,542 31,256 Receivables 7 13,624 13,845 CASH FLOWS FROM OPERATING ACTIVITIES Other assets 9 2773 1,787 Inflows Cash receipts Sydney Water Corporation 120,387 121,524 Total current assets 29,939 46,888 Cash Receipts Insurance Claims 260 325 Cash receipts other 5,120 7,575 Non current assets Property, plant and equipment 10 741,280 696,497 Interest received 929 1,112 Tax asset 4,021 2,343 126,696 130,536 Outflows Total non current assets 745,301 698,840 Payments to suppliers and employees (74,459) (86,507) Borrowing costs (12,895) (12,998) TOTAL ASSETS 775,240 745,728 Insurance claims expenditure (75) (159) Income tax (7,723) (5,379) Current liabilities Payables 11 35,271 28,340 (95,152) (105,043) Interest-bearing liabilities 12(a) 34,912 8,810 Net cash provided by operating activities 19 31,544 25,493 Provisions, excluding income tax liabilities 13(a) 18,774 21,226 Tax liabilities 5(b) 844 1,507 CASH FLOWS FROM INVESTING ACTIVITIES Inflows Total current liabilities 89,801 59,883 Sale of property, plant and equipment 145 - Outflows Non current liabilities Interest-bearing liabilities 12(b) 151,073 177,500 Purchases of property, plant and equipment (30,725) (18,726) Provisions, excluding income tax liabilities 13(b) 7,504 7,820 Net cash used in investing activities (30,580) (18,726) Tax liabilities 1,031 436 CASH FLOWS FROM FINANCING ACTIVITIES Total non current liabilities 159,608 185,756 Inflows Proceeds from borrowings 13,273 50,453 TOTAL LIABILITIES 249,409 245,639 Outflows NET ASSETS 525,831 500,089 Dividends (18,354) (18,877) Repayment of borrowings (13,597) (38,733) EQUITY Accumulated Funds 21 500,566 500,089 Net cash used in financing activities (18,678) (7,157) Asset Revaluation Reserve 8, 21 25,265 - TOTAL EQUITY 525,831 500,089 Net increase/(decrease) in cash held (17,714) (390) Opening cash and cash equivalents 31,256 31,646 [The accompanying notes form part of these financial statements] CLOSING CASH AND CASH EQUIVALENTS 6 13,542 31,256
[The accompanying notes form part of these financial statements]
Sydney Catchment Authority Annual Report 2004–2005 87 Investing in the future
SYDNEY CATCHMENT AUTHORITY NOTES ACCOMPANYING AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2005
PRINCIPAL ACTIVITIES Sydney Catchment Authority (the SCA) is a NSW statutory body constituted under the Sydney Water Catchment Management Act 1998 (the Act).
The Act conferred and imposed upon the SCA certain functions with respect to the protection and management of certain catchment areas, with respect to the supply of water to Sydney Water Corporation and other bodies, and with respect to other matters; it made provision for the protection of public health and public safety and for the protection of the environment; it made consequential amendments to the Water Board (Corporatisation) Act 1994 and certain other acts. It was assented to on 14 December 1998.
The parts of the Act that concern the setting up of the SCA came into effect on 8 January 1999. The setting up of the SCA was conducted under the auspices of The Cabinet Office and reported in its financial statements for the year 1998-1999 as “Administered Activities”.
The operations of the SCA are not considered to have started until the transfer of assets, liabilities and staff from Sydney Water Corporation. This took place on 2 July 1999.
The Sydney Water Catchment Management Amendment Act 2001 (the Amendment Act) that was passed by the NSW Parliament and received Royal Assent on 25 October 2001 amended the Sydney Water Catchment Management Act 1998. As per s2 of the Amendment Act, the Amendment Act is taken to have commenced on 8 January 1999.
The Amendment Act clarified the financial powers of the SCA by creating a Catchment Management Fund and identifying those items for which the SCA could receive and spend monies. The financial statements referred to in these Notes are the financial statements of the Sydney Catchment Authority Catchment Management Fund.
A further amendment to the Act has been made, known as the Sydney Water Catchment Management Amendment Act 2003 No 70 which received assent and was effective from 20 November 2004. This amendment: x extended the definition of catchment infrastructure works in s3 to include hydro-electric plants or associated infrastructure or works, x Included as special functions in s16 to generate and supply hydro-electricity and undertake any associated activities, whether on the Authority’s own account or with others, and x extended the Payments into Fund in s24B to include any money received by the Authority from the generation and supply of hydro-electricity
This amendment provided for the possibility of the SCA building small hydro-electricity plants as part of its catchment infrastructure works, to generate and supply green power and receive money for the sale of any surplus capacity to the SCA.
As required under s75 of the Act, a full review of the Act must be undertaken five years after the inception of the Act. This review was undertaken in 2004.
88 Sydney Catchment Authority Annual Report 2004–2005 1.STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES a) Reporting Entity
The SCA is a separate reporting entity. There are no entities under its control. b) Basis of Accounting
The SCA’s financial statements are a general financial report which has been prepared on an accrual basis and in accordance with applicable Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board (AASB), Urgent Issues Group (UIG) Consensus Views, and the requirements of the Public Finance and Audit Act 1983 as amended and the Public Finance and Audit Regulation, 2000. Where there are inconsistencies between the above requirements, the legislative provisions have prevailed.
In the absence of a specific Accounting Standard, or other authoritative pronouncement of the AASB or UIG Consensus View, the hierarchy of other pronouncements as outlined in AAS 6 Accounting Policies is considered.
The financial statements are prepared in accordance with the historical cost convention, except for certain non-current assets that are recorded at fair value. All amounts are rounded to the nearest one thousand dollars and are expressed in Australian currency. c) Employee Benefits
(i) Wages and salaries, compensated absences and on-costs
Liabilities for wages, salaries and compensated absences such as annual leave are recognised and measured at their nominal values using the remuneration rate expected to apply at the time of settlement, regardless of whether they are expected to be settled within 12 months of the reporting date.
Unused non-vesting sick leave does not give rise to a liability as it is not considered probable that sick leave taken in the future will be greater than the entitlements accrued in the future.
The outstanding amounts of payroll tax, workers’ compensation insurance premiums and superannuation, which are consequential to employment, are recognised as liabilities and expenses where the employee benefits to which they relate have been recognised.
(ii) Long service leave
Long service leave is measured at its present value in accordance with the requirements of the revised AASB1028 Employee Benefits. In May 2002, the NSW Government Actuary established the present value of long service leave entitlements as at 30 June 2002, using the following methodology:
For each future year the amounts of long service leave entitlements paid in service and on termination of employment were determined assuming rates of taking leave in service, rates of death, disablement, retirement and resignation, and rates of salary escalation. These future cash flows were then converted to a present value by discounting from the expected date of payment to the valuation date at the assumed interest rate. This has determined the total liability for existing employees.
The discount rate has been taken as the market yield on ten year Commonwealth bonds, which is currently about 6.3%. Salary increases have been assumed at a level that is 2.5% below the ten year bond rate.
The Actuary has provided a formula for estimating employee benefits in a three-year cycle. This formula will be applied annually until 30 June 2005.
Sydney Catchment Authority Annual Report 2004–2005 89 Investing in the future
Outstanding amounts for payroll tax, workers compensation insurance premiums and superannuation, which are consequential to employment, have been recognised as liabilities and expenses where the employee entitlements to which they relate have been recognised in accordance with the requirements of the revised standard.
(iii) Superannuation
Calculations in respect of the total liability for superannuation are based on actuarial advice with the exception of the First State Superannuation which is calculated at a percentage of salaries. The superannuation unfunded liability recorded in the Statement of Financial Position is determined as the difference between the gross liability actuarially calculated and the reserve (ie amount funded) in the respective defined benefit schemes. Details of the current status of the defined benefits superannuation funds are provided in Note 16.
d) Insurance
The Insurance Brokers, Marsh Pty. Limited who were appointed in March 2004, have placed the SCA’s insurance coverage with various domestic, London, European and North American Underwriters.
All of the SCA’s insurances were renewed by Marsh Pty Limited as at 31 May 2005 for the year to 31 May 2006, except for workers’ compensation, and provide insurance coverage in relation to the following matters:
x Industrial Special Risks; x Public and Product Liability; x Professional Indemnity; x Directors and Officers Liability and Company Reimbursement including Employment Practices Liability; x Directors and Officers Supplementary Legal Expenses; x Aircraft Non-Owned Liability; x Principal Controlled Liability – (only for contracts entered into prior to 31 May 2003); x Corporate Travel – Personal Accident and Sickness; x Comprehensive Motor Vehicle; x Workers Compensation (ACT, NT, TAS and WA); x Personal Accident Employees and Invitees of the SCA; x Personal Accident Voluntary Workers. x Workers Compensation.
The SCA’s Workers Compensation Insurance has been placed with QBE and was renewed as at 28 March 2005 for a period of one year.
The risks associated with the construction of the Warragamba Dam Auxiliary Spillway (the Spillway) were covered by two stand-alone policies for contract works and principal controlled liability insurance. The contract works insurance expired on 14 June 2005 being the conclusion of the two year defects liability period. The principal controlled liability insurance expired on 1 February 2005. These insurance policies were not renewed. The Spillway is now insured under the Industrial Special Risks policy.
e) Inventories
The SCA has adopted the policy of expensing low value items used in maintenance and the operation of the conference centre at Warragamba Dam. High volume chemicals used in the preliminary treatment of water are also expensed.
f) Investments
Investments comprise funds held with the Treasury Corporation’s “Hour-Glass” Facility. All investments are made in accordance with Part 1, Schedule 4, of the Public Authorities (Financial Arrangements) Act,
90 Sydney Catchment Authority Annual Report 2004–2005 1987 as amended. All investments are recorded at market value. Changes in market value during the reporting period are brought to account in the Statement of Financial Performance. g) Property, plant and equipment
(i) Acquisition and capitalisation
All items of property, plant and equipment are recorded initially at the cost of acquisition. Cost is determined as the fair value of the assets given as consideration plus costs incidental to the acquisition. Items costing $300 or more individually are capitalised.
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition. Fair value means the amount for which an asset could be exchanged between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm's length transaction.
In respect of system assets constructed by the SCA, cost includes materials used in construction, direct labour and an appropriate proportion of overheads. These assets are capitalised as completed assets as they become operational and available for use.
(ii) Asset valuation
Assets valued at $647 million were transferred from Sydney Water Corporation to the SCA on 2 July 1999. The value of $647 million was agreed to by PricewaterhouseCoopers, IPART, and Sydney Water Corporation. The value fell between the historical net book value of $480 million and the revaluation net book value of $1,653 million.
The SCA's asset project involving the determination of asset values on a segmented basis was completed in June 2001. During the 2002 year, a new class of asset was created to cater for the segmentation of Furniture and Fittings from Leasehold Improvements. Asset classes and effective lives based on a condition assessment have been identified, and depreciation rates have been based on the effective life of the respective assets, refer Note 1(i).
The SCA has two classes of physical non-current assets. These are Specialised Assets comprising of facility assets, work in progress, land & buildings, and Non-Specialised Assets comprising of operational equipment, furniture & fittings, motor vehicles, office equipment, computer hardware, office amenities and leasehold improvements.
Each class of physical non-current asset is revalued every five years and with sufficient regularity to ensure that the carrying value of each asset in the class does not differ materially from its fair value at reporting date.
The fair value of specialised assets where a market value could not be established was attributed to facility assets, work in progress, land and buildings in accordance with the requirements of Treasury Policy Paper 03/02. The recoverable amounts test was applied to determine the fair value of this class of assets resulting in a recoverable amount of $718.5 million. The SCA revalued its specialised assets on 1 July 2004 resulting in the creation of an asset revaluation reserve of $25.265 million (refer Notes 8 & 21).
The facility assets were revalued by a specialist independent valuer in conjunction with the Department of Commerce and SCA. The valuation was performed using the Optimised Depreciated Replacement Cost (ODRC) method. This involved establishing the cost of constructing the existing SCA facility assets using current construction costs and yielded a replacement cost of $3,551.624 million (refer Note 10a). This value was then depreciated back to the date the existing asset was originally constructed. The accumulated depreciation was $1,662.911 million. A recoverable amount assessment was then performed using discounted cash flow methodology. A discount rate of 8.04% was used to discount the pre-tax cash flows of SCA over the remaining estimated useful life of the facility assets. This resulted in a reduction in the ODRC value, known as Impairment of $1,218.529 million. The fair value after revaluation on 1 July
Sydney Catchment Authority Annual Report 2004–2005 91 Investing in the future
2004 was determined to be $670.184 million, a net increase of $113.114 million (refer Notes 8 & 21).
The fair value of Work in Progress assets was determined as a percentage of the total value of specialised assets and attributing that percentage to the recoverable amount of $718.5 million. This resulted in Work in Progress assets being impaired by $18.997 million (refer Notes 8 & 21).
The fair value of Land assets was determined as a percentage of the total value of specialised assets and attributing that percentage to the recoverable amount of $718.5 million. This resulted in Land assets being impaired by $66.101 million (refer Notes 8 & 21).
The fair value of Building assets was determined as a percentage of the total value of specialised assets and attributing that percentage to the recoverable amount of $718.5 million. This resulted in Building assets being impaired by $2.751 million (refer Notes 8 & 21).
Non-specialised assets with short useful lives are measured at depreciated historical cost, as a surrogate for fair value.
When revaluing physical non-current assets by reference to current prices for assets newer than those being revalued (adjusted to reflect the present condition of the assets), the gross amount and the related accumulated depreciation are separately restated.
Revaluation increments are credited directly to the asset revaluation reserve, except to the extent that an increment reverses a revaluation decrement in respect of that class of asset previously recognised as an expense in the surplus/deficit, the increment is recognised immediately as revenue in the surplus/deficit.
Revaluation decrements are recognised immediately as expenses in the surplus/deficit, except to the extent that a credit balance exists in the asset revaluation reserve in respect of the same class of assets, they are debited directly to the asset revaluation reserve.
Revaluation increments and decrements are offset against one another within a class of physical non-current assets, but not otherwise.
Where an asset that has been previously revalued is disposed of, any balance remaining in the asset revaluation reserve in respect of that asset is transferred to accumulated funds.
(iii) Assets under construction
Interest costs on borrowings specifically financing assets under construction are capitalised up to the date of completion of each asset to the extent those costs are recoverable.
92 Sydney Catchment Authority Annual Report 2004–2005 (iv) Asset valuation under the historic cost principle
In accordance with AASB116 s77(e), the written down value (WDV) based on the historic cost principle of the SCA’s property, plant and equipment as at 30 June 2005 is shown in the table below:
Property, plant and equipment class Historic Cost WDV @ 30/6/2005 $’000 a) Facility assets 559,571 b) Work in progress at cost 47,731 c) Land 102,456 d) Buildings 4,166 e) Operational equipment 1,796 f) Motor vehicles 222 g) Office equipment 346 h) Computer equipment 282 i) Office amenities 83 j) Furniture & fittings 222 k) Leasehold improvements 103 Total Property, plant and equipment historic cost WDV 716,978 h) Interest Bearing Liabilities
The SCA borrows through the NSW Treasury Corporation in the form of liquid and marketable TCorp stocks. As part of its debt management activities, the SCA buys back its debt and refinances with NSW Treasury Corporation debt. The gains and losses arising from substituting the prepaid debt with new debt are included in the Statement of Financial Performance (refer Note 4). Discount and premium on loans are in the nature of an adjustment to the cost of borrowing. Any discount or premium is amortised over the term of the loans, with the amount applicable to each year being included in the Statement of Financial Performance as part of the SCA's financing charges for that year. The borrowings amount appearing in the Statement of Financial Position is net of amortisation, refer Note 12. i) Depreciation of Non-Current Assets
Depreciation is provided for on a straight-line basis against all depreciable assets so as to write off the depreciable amount of each asset as it is consumed over its useful life to the SCA.
Non-current Asset Classification Life in years Dams 100 to 150 Reservoirs 75 to 100 Canals & tunnels 100 Major pipelines (above ground) 150 Weirs 100 Water mains 50 System buildings 40 to 100 Water pumping stations 45 Water treatment plants 45 Working plant & equipment 2 to 14 Operating equipment 3 to 20 Motor vehicles 7 Office equipment 4 to 10 Computer equipment 5 Furniture and fittings 5 Office amenities 7 to 20 Leasehold improvements Over the remaining period of the lease or life of the improvements whichever is shorter.
Sydney Catchment Authority Annual Report 2004–2005 93 Investing in the future
The segmentation of assets project which was completed in June 2001 showed that the depreciation charge for 1999-2000 was understated by $1.436 million. As required by the Australian Accounting Standards, this additional expense was accounted for over an expected period of benefit, being a five year period. Therefore, in this the final year the depreciation charge will include an additional amount of $0.287 million.
j) Leased Assets
A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of the leased assets, and operating leases under which the lessor effectively retains all such risks and benefits.
Where a non-current asset is acquired by means of a finance lease, the asset is recognised at its fair value at the inception of the lease. The corresponding liability is established at the same amount. Lease payments are allocated between the principal component and the interest expense.
Operating lease payments are charged to the Statement of Financial Performance in the periods in which they are incurred.
k) Maintenance and Repairs
The costs of maintenance and repairs are charged as expenses as incurred except where they relate to the replacement of a component of an asset in which case the costs are capitalised and depreciated.
During the 2005 financial year, the SCA has reviewed its policy and procedures relating to the creation of assets and guidelines for identifying Maintenance Expenditure on assets.
l) Financial Instruments
Financial instruments give rise to positions that are financial assets or liabilities (or equity instruments) of either the SCA or its counterparties. These include Cash, Hour Glass Investment Facilities, Receivables, Bank Overdraft, Payables and Interest Bearing Liabilities. Classes of instruments are recorded at cost and are carried at net fair value.
(i) Cash
Cash comprises cash on hand and bank balances with a commercial bank. Interest has been earned at the prevailing rates.
(ii) Hour-glass investment facilities
The SCA has investments in TCorp's Hour-Glass facilities. The SCA's investments are represented by a number of units of a managed investment pool, with each particular pool having different investment horizons and being comprised of a mix of asset classes appropriate to that investment horizon. TCorp appoints and monitors fund managers and establishes and monitors the application of appropriate investment guidelines.
(iii) Receivables
All trade debtors are recognised as amounts receivable at balance date. Collectability of trade debtors is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off. A provision for doubtful debts is raised when some doubt as to collection exists. The credit risk is the carrying amount (net of any provision for doubtful debts). No interest is earned on trade debtors. The carrying amount approximates net fair value. Sales of bulk water to Sydney Water are made on 21 day terms, all other sales are made on 30 day terms.
(iv) Bank overdraft
The SCA does not have any bank overdraft.
94 Sydney Catchment Authority Annual Report 2004–2005 (v) Payables
Liabilities are recognised for amounts due to be paid in the future for goods and services received, whether or not invoiced. Amounts owing to suppliers (which are unsecured) are settled in accordance with the policy set out by Treasury. If trade terms are not specified, payment is made no later than the end of the month following the month in which an invoice or a statement is received. Government guidelines allow for the Chief Executive or delegate to award interest for late payment.
Interest in the amount of three dollars and forty cents ($3.40) has been awarded in the 2005 year relating to the settlement of accounts outside their payment terms due to the late certification of performance of service on accounts during the January 2005 holiday period.
On 2 June 2003 an electronic procurement system was introduced which has improved the prompt processing of creditors accounts by operational staff when compared to previous years results. The SCA’s creditors payment performance is reviewed by the Executive and Board on a monthly basis to promote continuous improvement within this area.
(vi) Interest bearing liabilities
Details of the SCA's borrowings from the New South Wales Treasury Corporation are disclosed at Note 20. m) Revenue Recognition
Revenue is recognised when the SCA has passed control of, or the right to receive, the goods and services to the buyer, and the amount of revenue can be reliably measured.
(i) Bulk water sales and ancillary services
Revenue from the sale of goods (bulk water) is recognised when the SCA has passed control of the goods to the buyer. Revenue from ancillary services is recognised when there is a valid claim against external parties.
(ii) Investment income
Interest revenue is recognised as it accrues.
(iii) Rent revenue
Rent revenue is recognised in accordance with AAS 17 "Accounting for Leases". n) Taxation
An equivalent or notional income tax is payable to the NSW Government through the Office of State Revenue. Taxation liability is assessed according to the National Tax Equivalent Regime of the NSW Treasury, which proposes as far as practicable the adoption of the Commonwealth Income Tax Assessment Act 1936 (as amended) as the basis for determining taxation liability and, therefore, the adoption of tax-effect accounting, refer Note 5.
Income tax expense is calculated on the operating profit adjusted for permanent differences between taxable income and accounting profit. The tax effect of timing differences, which arise from items being brought to account in different periods for income tax and accounting purposes, is carried forward in the Statement of Financial Position as a future income tax benefit or a provision for deferred income tax. Future income tax benefits are not brought to account unless realisation of the asset is certain.
From 1 July 2001, the State Tax Equivalent Regime was replaced by the National Tax Equivalent Regime (NTER). During the current financial year, the requirements of the NTER prevailed.
Sydney Catchment Authority Annual Report 2004–2005 95 Investing in the future
o) Dividend Payable to State Government
The Dividend payable to the State Government is established in the SCA’s Statement of Financial Framework. The dividend payable to the State Government is negotiated by reference to the after tax earnings of the SCA in the context of the financial health of the SCA and capital expenditure requirements.
The 2004–2005 dividend has been calculated on the basis of 97% of profit after tax, refer Note 13(a).
p) Accounting for Goods and Services Tax
In relation to the Goods and Services Tax (GST), revenues, expenses and assets are recognised net of GST, except where the amount of GST incurred by the SCA as a purchaser is not recoverable from the Australian Taxation Office. In such cases, the GST is recognised as part of the acquisition of an asset or as part of an item of expense. Accrued receivables and payables are stated inclusive of GST.
q) Bushfire Insurance Claim
The SCA suffered losses predominantly to its Warragamba site, during the bushfire incident which occurred in the December 2001/January 2002 period.
Whilst insurance coverage was sufficient to cover the loss of both assets and equipment, additional operating expenditure mainly in the area of additional employee-related and incident management costs which occurred as a result of the declaration of a S44 Incident by the Rural Fire Service, were recovered under the provisions of the Rural Fires Act, 1997.
A summary of the identified financial losses, additional operational costs, plans for reinstatement or replacement of assets and recoverable amounts from both insurance and legislative provisions are shown in Note 14.
During December 2002/January 2003, the SCA responded to the Rural Fire Service for assistance in controlling bushfires within the SCA catchment lands. The SCA did not incur loss of property during these fires. Additional operational expenditure (Incident management and employee–related costs) was incurred as a result of the declaration of two S44 Incidents by the Rural Fire Service relating to these fires. The additional costs were recovered under the provisions of the Rural Fires Act, 1997.
r) Impact of adopting Australian equivalents to International Financial Reporting Standards
The SCA will apply the Australian equivalents to International Financial Reporting Standards (AEIFRS) from 2005-06.
The SCA has established a formal implementation project to assess the impact of transition to AEIFRS and to achieve compliance with AEIFRS reporting. This project, including the training of all staff on the impacts of the changes, is the responsibility of the SCA Executive and all recommendations have been approved by the SCA Board throughout the various phases of this project.
The following strategy has been and continues to be implemented to manage the transition to AEIFRS. The project is achieving its scheduled milestones and SCA is expected to be in a position to comply with the requirements of AEIFRS for the 30 June 2006 financial year.
The AEIFRS implementation project involves the following phases:
x Assessment and planning: This phase involved an analysis of the pending standards to identify the key areas of impact upon accounting policies and procedures. It involved an assessment of new information requirements affecting management information systems as well as the impact on SCA’s business and key processes. During this phase an evaluation of the implications for staff was also undertaken. The completion of this stage resulted in the preparation of a detailed conversion plan. The assessment and planning phase is complete as at 30 June 2005
96 Sydney Catchment Authority Annual Report 2004–2005 x Design: The design phase formulated the changes required to existing accounting policies and procedures, systems and processes in order to transition to AEIFRS. This phase also involved the identification of financial impacts as at the transition date and for subsequent periods. During this phase, SCA also completed training of its management and staff in the new AEIFRS requirements. This phase is complete as at 30 June 2005. x Implementation: The implementation involves preparation of transition date balances, capture of comparative balances and test runs to ensure the policies and processes will work effectively on an ongoing basis. This stage is substantially complete as at 30 June 2005.
Impact of conversion to AEIFRS SCA has determined the key areas where changes in accounting policies are likely to impact the financial report. Some of these impacts arise because AEIFRS requirements are different to existing AASB requirements or Australian Generally Accepted Accounting Practices (A-GAAP). Other impacts are likely to arise from the options in AEIFRS. To ensure consistency at the whole of government level, NSW Treasury has advised agencies of the options that it is likely to mandate for the NSW Public Sector. The impacts disclosed in the following tables reflect Treasury’s likely mandates (referred to as indicative mandates).
These tables reflect management’s best estimates as at the date of preparing the 30 June 2005 financial report of the financial impacts of AEIFRS on SCA’s equity and profit. SCA does not anticipate any material impacts on its cash flows. The actual effects of the transition may differ from the estimated figures contained within these tables because of pending changes to the AEIFRS, including the UIG Interpretations and/or emerging accepted practice in their interpretation and application. SCA’s accounting policy may also be affected by a proposed standard to harmonise accounting standards with Government Finance Statistics (GFS). However, the impact is uncertain because it depends on when this standard is finalised and whether it can be adopted in 2005-06.
Sydney Catchment Authority Annual Report 2004–2005 97 Investing in the future
(i) Reconciliation of key aggregates
Reconciliation of equity under existing Standards (AGAAP) to equity under AEIFRS:
30 June 2005** 1 July 2004* Notes $000 $000 Total equity under AGAAP 525,831 525,354 Adjustments to accumulated funds Effects of valuing assets individually rather than 1 - - by class Grants 2 1,065 6,684 Recognition of major inspection costs 3 - - Recognition of restoration costs 4 (132) (109) Recognition of dismantling obligations 4A (146) (102) Write back of previous revaluations of 5 - - investment properties Derecognition of intangible assets 6 - - Derecognition of capitalised interest 7 - - Defined benefit superannuation adjustment for change in discount rate 8 (8,216) (4,362)
Effect of discounting long-term annual leave 9 202 18 Tax effect adjustment 10 2,413 130 Finance leased assets – depreciation 11 (1,457) - Finance leased assets – interest 11 (109) - Operating lease rental expense 11 1,566 - Adjustments to other reserves Effects of valuing assets individually rather than 1 - - by class Write back of previous revaluations of 5 - - investment properties Derecognition of intangible assets 6 - - Derecognition of capitalised interest 7 - - Tax effect of asset revaluation 10 (7,579) (7,579) Total AIFRS adjustments (12,393) (5,320) Total equity under AEIFRS 513,438 520,034
* adjustments as at the date of transition ** cumulative adjustments as at date of transition plus the year ended 30 June 2005
98 Sydney Catchment Authority Annual Report 2004–2005 Reconciliation of surplus/(deficit) under AGAAP to surplus/(deficit) under AEIFRS:
Year ended 30 June 2005
Notes $’000 Surplus/(deficit) under AGAAP 15,864 Grants 2 (5,619) Major inspection costs 3 - Restoration costs 4 (23) Depreciation on dismantling obligations 4A (31) Finance cost from discounting dismantling obligations 4A (13) Investment properties 5 - Research costs expensed 6 - Borrowing costs expensed 7 - Defined benefit superannuation 8 (3,854) Long term annual leave 9 184 Finance leased assets – depreciation 11 (1,457) Finance leased assets – interest 11 (109) Operating lease rental expense 11 1,566 Income tax expense 10 2,283 Surplus/(deficit) under AEIFRS 8,791
Notes to tables above 1. AASB116 requires for profit entities to recognise revaluation increments and decrements on an individual asset basis rather than class of asset basis. SCA already recognises revaluation increments or decrements on an individual asset basis and accordingly there is no change for the adoption of AEIFRS.
2. SCA has not received revenue grants. Grants are paid by the SCA as part of its business operations. AASB 120 Accounting for Government Grants and Disclosure of Government Assistance requires for-profit entities to recognise grant expense proportionally over a period consistent with the grantee incurring expenditure associated with the grant. This has the effect of delaying expense recognition and increasing prepayments. Under current AGAAP, grants are normally recognised as an expense on a cash basis. The expenditure underlying the grant was incurred by the grantee during the 30 June 2005 financial year. All grants that were in existence at transition date have, therefore, been acquitted and the expense recognised in the 30 June 2005 financial year.
It is possible that AASB 120 may be amended to adopt the approach in AASB 141 Agriculture where grants are recognised as revenue/expense when conditions are satisfied. However, at this stage, the timing and dollar impact of these amendments is uncertain.
3. AASB116 requires major inspection costs to be capitalised. SCA consider that its inspection costs of major assets to be so insignificant that they will continue to be expensed as incurred.
4. AASB137 requires restoration obligations under lease obligations to be provided for over the life of the lease.
Sydney Catchment Authority Annual Report 2004–2005 99 Investing in the future
4A. AASB 116 requires the cost and fair value of property, plant and equipment to be increased to include the present value of the estimated dismantling obligations under lease obligations, where a provision for dismantling costs are recognised under AASB 137 Provisions, Contingent Liabilities and Contingent Assets. These dismantling costs must be depreciated and the unwinding of the provision for dismantling costs must be recognised as a finance expense. This treatment is not required under current AGAAP.
5. Under AASB140 Investment property is required to be measured at fair value. SCA does not currently hold any investment property. Although certain SCA’s properties are leased to third parties, these assets are held as part of SCA’s core operations not for capital appreciation or rental return.
6. AASB138 requires all research costs to be expensed as incurred and restricts the capitalisation of development costs. Current AGAAP permits some research and development costs to be capitalised when certain criteria are met. As a result, some currently recognised intangibles will need to be derecognised. No expenditures that are required to be derecognised under AEIFRS have been capitalised by SCA and accordingly no adjustment is required.
AASB 138 Intangible Assets will also result in certain reclassifications from property, plant and equipment to intangible assets (eg. computer software and easements). The SCA has not capitalised software due to its relatively short effective life and low value.
7. Current AGAAP requires borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset to be capitalised and other borrowing costs to be expensed. SCA has not incurred any borrowing costs on qualifying assets and accordingly no adjustment is required.
8. AASB 119 Employee Benefits requires the defined benefit superannuation obligation to be discounted using the government bond rate as at each reporting date, rather than the long-term expected rate of return on plan assets. The SCA assumes its superannuation obligation which means that the change in discount rate will increase the defined benefit superannuation liability and change the quantum of the superannuation expense.
9. AASB 119 Employee Benefits requires present value measurement for all long-term employee benefits. Current AGAAP provides that wages, salaries, annual leave and sick leave are measured at nominal value in all circumstances. SCA has long-term annual leave benefits and accordingly will measure these benefits at present value, rather than nominal value, thereby decreasing the employee benefits liability and changing the quantum of the annual leave expense.
10. AASB 112 Income Taxes uses a balance sheet approach which requires the differences between the accounting and tax value of assets and liabilities to be recognised as deferred tax assets or liabilities. Current AGAAP uses an operating statement method that accounts for tax by adjusting accounting profit for temporary and permanent differences to derive taxable income. The AASB 112 approach alters the quantum and timing of tax assets and liabilities recognised. In particular, the balance sheet approach results in the recognition of a deferred tax liability in relation to revalued assets that are generally not recognised under current AGAAP. In addition, a deferred tax asset has been recognised in relation to the defined benefit superannuation liability. This also changes the quantum and timing of the tax expense.
11. AASB117 Leasing introduces some further guidance on the classification of leases as either finance or operating. As a consequence, certain computer, motor vehicle and photocopier leases have been reclassified as finance leases on adoption of AEIFRS. At the transition date, finance lease assets and finance lease liabilities of $1.715 million will be recognised. As at 30 June 2005, finance leased assets depreciation expense and finance leased assets interest expenses will increase by $1.457 million and $0.109 million respectively, offset by a reduction in operating lease rental expense.
100 Sydney Catchment Authority Annual Report 2004–2005 (ii) Financial Instruments
In accordance with NSW Treasury’s indicative mandates, SCA will apply the exemption provided in AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards which relates to not applying the requirements of AASB 132 Financial Instruments: Presentation and Disclosures and AASB 139 Financial Instruments: Recognition and Measurement for the financial year ended 30 June 2005. These Standards will apply from 1 July 2005. None of the information provided above includes any impacts for financial instruments. However, when these Standards are applied, they are likely to impact on retained earnings (on first adoption) and the amount and volatility of profit/loss. Further, the impact of these Standards will in part depend on whether the fair value option can or will be mandated consistent with GFS.
Sydney Catchment Authority Annual Report 2004–2005 101 Investing in the future
2. REVENUES FROM ORDINARY ACTIVITIES 2005 2004 $’000 $’000 a) Revenue from Core Activities Bulk Water Sales to Sydney Water Corporation at Fixed Prices 64,392 62,880 Rebate of operating costs allowed to Sydney Water Corporation (1,200) (1,200) Bulk Water Sales to Sydney Water Corporation at Variable Prices 60,307 63,075 Sydney Water Corporation – Water Quality Rebate (3,200) (3,200) Other Bulk Water Sales 585 618 Revenue from Core Activities 120,884 122,173
b) Revenue from other than Core Operating Activities Contracting Out 3,341 713 Rental Income 311 472 Conference Centre hire 129 182 Gross Insurance Recoveries 259 609 Other 317 108 Interest Income 929 1,113 Revenue from other than Core Operating Activities 5,286 3,197
Revenues from Ordinary Activities 126,170 125,370
102 Sydney Catchment Authority Annual Report 2004–2005 3. EXPENSES FROM ORDINARY ACTIVITIES, EXCLUDING BORROWING COSTS EXPENSE
2005 2004 $’000 $’000 a) Employee Related Expenses Salary and Wages (including recreation leave and redundancies) 21,021 19,111 Superannuation (364) 803 Long Service Leave 972 1,020 Workers Compensation Insurance 588 337 Payroll Tax and Fringe Benefits Tax 1,600 1,501 Employee Related Expenses 23,817 22,772
b) Contractors Expenses Agency hire of staff 2,319 2,274 Employment Specialist Services 222 230 Water Quality and Monitoring 6,504 6,808 Environmental Planning and Management 1,911 3,378 Dam Safety and Mining Protection 6,970 842 Operating Licence Compliance - 173 Bulk Water Purchases 1,179 1,305 Integrated Management Systems 245 536 Contractors – general 953 840 Contractors Expenses 20,303 16,386
c) Property and Materials Expenses Repairs and Maintenance – Buildings 848 981 Grounds Maintenance 1,121 1,059 Security 2,131 2,219 Materials 441 404 Rent & Rates 1,250 1,141 Other 13 2 Property and Materials Expenses 5,804 5,806
Sydney Catchment Authority Annual Report 2004–2005 103 Investing in the future
3. EXPENSES FROM ORDINARY ACTIVITIES, EXCLUDING BORROWING COSTS EXPENSE (Continued)
2005 2004 $’000 $’000 d) Other Operating Expenses Advertising 156 747 Auditor’s Remuneration 145 145 Internal & Other Audit Fees 343 170 Insurance Claims Expenditure – Gross 75 159 Committee Fees and Expenses 107 332 Consultancies - 85 Research and Development 1,114 1,138 Energy 360 276 Energy – drought pumping 6,814 6,298 Maintenance on Assets and Equipment 3,003 3,713 Grants and Sponsorships 3,929 3,585 Information Management 2,352 2,096 Insurance Premiums 4,672 5,988 Memberships and Subscriptions 707 742 Telephone and Fax 556 540 Transport 1,391 1,531 Preparation of plans and reports 1,279 745 Printing and Stationery 227 238 Training Courses 411 292 Other 711 825 Other Operating Expenses 28,352 29,645
104 Sydney Catchment Authority Annual Report 2004–2005 3. EXPENSES FROM ORDINARY ACTIVITIES, EXCLUDING BORROWING COSTS EXPENSE (CONTINUED) 2005 2004 $’000 $’000 e) Depreciation Expense Facility Assets 9,842 8,526 Buildings 33 104 Operational Equipment 329 269 Furniture & Fittings 218 252 Motor Vehicles 103 147 Office Equipment 68 71 Computer Hardware 44 74 Office Amenities 12 12 Leasehold Improvements 412 519 Depreciation Expense 11,061 9,974
f) Licence Fees 1,866 1,726
g) Loss on sale/write off on non-current assets (1) -
Expenses from ordinary activities excluding borrowing costs 91,202 86,309 expense
4. BORROWING COSTS EXPENSES 2005 2004 $’000 $’000 Interest Expense 12,487 12,328 Amortisation of premium/discount (297) (273) Interest Differential – Government Guarantee Fee 916 938 Other 21 46 Borrowing Cost Expense 13,127 13,039
Sydney Catchment Authority Annual Report 2004–2005 105 Investing in the future
5. INCOME TAX 2005 2004 $’000 $’000 a) Income Tax Expense Prima Facie Income Tax Expense (30% of profit from ordinary activities) 6,552 7,807 Permanent Differences Prior Year Adjustment - (361) Depreciation on Revaluation 269 - Entertainment 2 - Superannuation Liability (defined benefits) (524) (96) Research & Development Concession (322) (249) Total Income Tax Expense 5,977 7,101
b) Provision for Income Tax Opening Balance of Tax Provision 1,507 (158) Income Tax Provided for the Year 7,021 7,415 Tax Refunds 298 839 Prior year adjustments 39 (370) Payment – Instalments (8,021) (6,219) Provision for Income Tax at Year End 844 1,507
6. CASH ASSETS 2005 2004 $’000 $’000 Cash 7,465 173 TCorp Hour-Glass Facility 6,077 31,083 Cash Assets 13,542 31,256
7. RECEIVABLES 2005 2004 $’000 $’000 Trade Debtors – Net of Provision for Doubtful Debts 10,471 10,526 Other Debtors 3,153 3,319 Receivables 13,624 13,845
8. REVALUATION RESERVE – SPECIALISED ASSETS 2005 2004 $’000 $’000 Revaluation - Facility Assets 113,114 - Impairment – Work in Progress (18,997) - Impairment – Land (66,101) - Impairment – Buildings (2,751) - Revaluation Reserve 25,265 -
106 Sydney Catchment Authority Annual Report 2004–2005 9. OTHER ASSETS 2005 2004 $’000 $’000 Prepaid Superannuation (Note 16) 1,345 581 Insurance Claims 183 282 Prepaid Insurance Premiums 48 594 Other 1,197 330 Other Assets 2,773 1,787
10. PROPERTY, PLANT & EQUIPMENT 2005 2004 $’000 $’000 a) Facility Assets Opening balance at cost 594,069 587,186 Revaluation 2,957,555 - Optimised Replacement Cost 3,551,624 - Depreciation based on Optimised Replacement Cost (1,662,911) - Impairment (1,218,529) - Fair value after revaluation @ 1/7/2004 670,184 587,186 Assets capitalised 11,127 6,440 Asset Replacement re Bush Fires 181 443 Depreciation subsequent to revaluation (9,842) - Accumulated depreciation - (36,999) Fair Value 671,650 557,070
b) Work in Progress Metropolitan Water Plan 8,761 - Warragamba Dam Spillway Upgrade 11,368 7,940 Warragamba Dam General Upgrade 11,917 4,486 Warragamba Pipelines Upgrade 2,075 3,841 Blue Mountains System Upgrade 1,074 88 Metropolitan Dams Upgrade 394 284 Upper Canal Upgrade 73 4,772 Prospect Reservoir Upgrade 2,605 2,525 Shoalhaven System Upgrade 2,372 1,849 Catchments Upgrade 991 430 General Upgrades 6,101 3,230 Impairment (18,997) - Fair Value 28,734 29,445
Sydney Catchment Authority Annual Report 2004–2005 107 Investing in the future
10. PROPERTY, PLANT & EQUIPMENT (Continued) 2005 2004 $’000 $’000 c) Land Opening balance at cost 102,456 102,456 Impairment (66,101) - Fair Value 36,355 102,456
d) Buildings Opening balance at cost 4,775 4,772 Buildings capitalised 7 3 Impairment (2,750) - Accumulated depreciation (545) (512) Fair Value 1,487 4,263
e) Operational Equipment Opening balance at cost 2,014 1,913 Equipment capitalised 788 91 Asset Replacement re: Bush Fires - 9 Accumulated depreciation (1,006) (675) Fair Value 1,796 1,338
f) Motor Vehicles Opening balance at cost 890 890 Accumulated depreciation (523) (420) Disposal of motor vehicles (355) - Depreciation written back 210 - Fair Value 222 470
g) Office Equipment Opening balance at cost 531 434 Office Equipment capitalised 71 97 Accumulated depreciation (256) (188) Fair Value 346 343
108 Sydney Catchment Authority Annual Report 2004–2005 10. PROPERTY, PLANT & EQUIPMENT (Continued) 2005 2004 $’000 $’000 h) Computer Equipment Opening balance at cost 432 432 Computer equipment capitalised 207 - Accumulated depreciation (357) (314) Fair Value 282 118
i) Office Amenities Opening balance at cost 115 96 Office amenities capitalised 11 19 Accumulated depreciation (43) (31) Fair Value 83 84
j) Furniture and Fittings Opening balance at cost 1,198 1,111 Improvements capitalised 15 87 Accumulated depreciation (991) (772) Fair Value 222 426
k) Leasehold Improvements Opening balance at cost 1,779 1,260 Improvements capitalised 31 520 Accumulated depreciation (1,707) (1,296) Fair Value 103 484
Property, Plant and Equipment 741,280 696,497
11. PAYABLES 2005 2004 $’000 $’000 Creditors 11,766 4,998 Accrued charges 22,329 23,112 Accrued salaries, wages and on-costs 1,176 230
Payables 35,271 28,340
Sydney Catchment Authority Annual Report 2004–2005 109 Investing in the future
12. INTEREST-BEARING LIABILITIES 2005 2004 $’000 $’000 a) Short Term Call Loans - 9,164 Fixed Interest Loans (TCorp) 35,462 - Futures (418) (354) Premium / (discount) on loans (132) -
Short Term Interest Bearing Liabilities 34,912 8,810
b) Long Term Fixed Interest Loans (TCorp) 150,191 176,122 Premium/ (discount) on loans 882 1,378
Long Term Interest–Bearing Liabilities 151,073 177,500
Short term debt in the form of call loans has been progressively reduced from an opening balance in 2004 of $9.164 million by the creation of new long term loans. The last remaining call loan of $0.657 million was converted to long term debt in April 2005.
At balance date, one fixed interest loan totalling $35.5 million had a maturity date falling due prior to 30 June 2006. This loan has been included in the 2005 closing balance of short term interest bearing liabilities and reflected in the reduction in long term debt for the 2005 year.
Repayments of existing long term loans totalled $4.045 million during the 2005 year. Four new long term loans with a total face value of $13.576 million were created from a combination of converted short term debt and the prepayment of existing long term loans.
110 Sydney Catchment Authority Annual Report 2004–2005 13. PROVISIONS, EXCLUDING INCOME TAX LIABILITIES 2005 2004 $’000 $’000 a) Current Provisions for Taxes 69 66 Provisions for Dividends 15,387 18,354 Provisions for Employee Benefits 3,318 2,806 Current Provisions, excluding tax liabilities 18,774 21,226 b) Non Current Unfunded Superannuation Liability (Note 16) 2,161 3,143 Provisions for Employee Benefits 5,343 4,677 Non Current Provisions, excluding tax liabilities 7,504 7,820
Aggregate employee benefits and related on-costs Provisions – current 3,318 2,806 Provisions – non-current 7,504 7,820 Accrued salaries, wages and on-costs (Note 11) 1,176 230 11,998 10,856
14. INSURANCE RECOVERIES FROM BUSH FIRES
The Statement of Financial Performance contains gross revenue of $0.259 million ($0.609 million, 2004). It also contains gross operational expenditure of $0.075 million ($0.159 million, 2004) representing the costs of restoration work and excess labour costs in relation to the s44 Rural Fires Act 1997 claims.
$0.181 million ($0.325 million, 2004) represents the funding recovered for the replacement of assets.
The Statement of Financial Position includes fixed assets of $0.633 million ($0.452 million, 2004) within Property, Plant and Equipment.
15. STATEMENT OF OPERATIONS OF SEGMENTS
The economic entity operates predominately in the water industry in the one geographical area of New South Wales in Australia. Its area of operations is wholly within New South Wales.
Sydney Catchment Authority Annual Report 2004–2005 111 Investing in the future
16. SUPERANNUATION
2005 SASS SANCS SSS Total Contributors 52 83 31 83 Pensioners - - 10 10 Deferred Benefits - - 1 1 Pensions Fully Commuted - - 1 1 Monetary Value in $’000 Accrued Liability (5,970) (2,062) (14,347) (22,379) Less Estimated Reserve Account Closing Balance as at 30 June 2005 7,123 2,254 12,186 21,563 Prepaid Contributions as at 30 June 2005 1,153 192 - 1,345 Unfunded Liability as at 30 June 2005 - - (2,161) (2,161)
2004 SASS SANCS SSS Total Contributors 53 87 34 87 Pensioners - - 9 9 Monetary Value in $’000 Accrued Liability (5,637) (1,986) (13,936) (21,559) Less Estimated Reserve Account Closing Balance as at 30 June 2004 6,218 1,943 10,836 18,997 Prepaid Contributions as at 30 June 2004 581 - - 581 Unfunded Liability as at 30 June 2004 - (43) (3,100) (3,143)
The SCA's gross superannuation liability for employees in the above three schemes as at 30 June 2005 was calculated using the assumptions with regard to rates of mortality, resignation, retirement and other demographics as those to be used for the 2003 triennial valuation.
The calculations of SSS, SASS and SANCS liabilities is based on the requirements of AAS25. The financial assumptions that have been applied for the calculations are:
2004 2005 2006 & thereafter
Rate of investment return 7.0 7.0 7.0 Rate of salary increase 4.0 4.0 4.0 Rate of increase in CPI 2.5 2.5 2.5
The assessment is based on membership data as at 31 March 2005 and neither assets nor liabilities have been adjusted to reflect any changes to the SCA since that date.
The summary statement above includes the estimated number of members in each membership category and the net funding position as at 30 June 2005.
The estimated reserve account balance as at 30 June 2005 comprises the actual June 2005 reserve account balance, which includes all transactions for the year (other than June’s interest), plus an estimate of the interest applicable to the reserve for the month of June.
112 Sydney Catchment Authority Annual Report 2004–2005 17. COMMITMENTS
Goods and Services Tax (GST)
All commitments include the Goods and Services Tax (GST) where applicable. The SCA is registered for GST and claims back from the Australian Taxation Office all GST paid on business expenditure as Input Tax Credits. The SCA collects taxes on taxable supplies also where applicable.
a) Capital Commitments 2005 2004 $’000 $’000 Capital commitments contracted for at balance date but not provided for: Not later than 1 year 22,413 12,276 Later than 1 year but not later than 5 years 4,576 4,176
Capital Commitments 26,989 16,452
Contracts relating to the implementation of the state government’s Metropolitan Water Plan were not let as at 30 June 2005. At this stage, it is expected that the contracts for the Deep Storage Projects for Warragamba and Nepean Dams during the 2006 year with the work completed in the 2007.
b) Other Expenditure Commitments 2005 2004 $’000 $’000 Other expenditure commitments contracted for at balance date but not provided for: Not later than 1 year 13,230 22,790 Later than 1 year but not later than 5 years 9,735 14,249
Other Expenditure Commitments 22,965 37,039
c) Lease Commitments 2005 2004 $’000 $’000 Operating lease expenditure contracted for at balance date but not provided for: Not later than 1 year 1,878 2,497 Later than 1 year but not later than 5 years 508 2,350
Lease Commitments 2,386 4,847
Sydney Catchment Authority Annual Report 2004–2005 113 Investing in the future
18. CONTINGENT LIABILITIES
Other than commitments mentioned elsewhere in these notes, the SCA is not aware of any contingent liabilities associated with its operations.
a) Native Title Claims
Two native title claims have been made by the Gundungurra people over lands that are owned by the SCA, or jointly managed by the SCA, in conjunction with the Department of Environment and Conservation (DEC). The claims relate both to lands in the special areas (now owned by DEC) and under the stored waters of Warragamba Dam. Both native title claims have been in the Federal Court for approximately the last five years.
The Gundungurra people have now reduced the size of their claim to a smaller core area, which does not include any land or waters claimed by other native title claimants.
In view of recent concessions made by the Gundungurra People, the Minister responsible for the Department of Lands has advised that he is prepared to enter into negotiations with the applicants for the settlement of the claim on a non-native title basis. It is proposed to settle the applicants' native title claim by way of an Area Indigenous Land Use Agreement (AILUA).
These claims will be settled by administrative means rather than the payment of compensation. The SCA has been requested to make a financial contribution for legal and administrative expenses in order to assist the Gundungurra people to negotiate the AILUA. The negotiation process is ongoing.
b) The Warragamba Dam Auxiliary Spillway Project
i) Folly Creek Claim Abigroup commenced legal proceedings against the SCA in the New South Wales Supreme Court seeking damages to compensate it for the loss that it claims to have suffered as a result of the need to excavate from Folly Creek a significantly greater amount of fill than it had been able to estimate from tender documentation provided to it by Sydney Water Corporation (Sydney Water).
The allegation against Sydney Water/SCA was that it had engaged in misleading and deceptive conduct within the meaning of section 52 of the Trade Practices Act 1974 .
This conduct was that, at the time of tender, Sydney Water/SCA had in its possession, plans that showed the rock levels in Folly Creek, prior to the construction of the Warragamba Dam, to be significantly different to those represented to Abigroup during the tender process. Abigroup claim that those plans ought to have been disclosed to it.
The matter was heard between 17 June 2002 and 12 July 2002 by Mr Morton Rolfe, QC, sitting as a Referee. The Referee delivered his report on 8 August 2002 and recommended in his report, that a verdict be entered in favour of the SCA.
The Referee’s Report was adopted by Mr Justice Nicholas on 23 July 2003. Abigroup filed an appeal against this decision. The appeal was heard on 29 and 30 March 2004.
On 9 August 2004 the Court of Appeal delivered a judgement upholding Abigroup’s appeal. The significant orders made by the Court of Appeal were that the orders made by Justice Nicholas on 23 July 2003 be set aside and that the Referee’s Report be rejected in its entirety.
The SCA sought clarification from the Court of Appeal on what was, in effect, an interpretation of the orders that the court had made. On a worst case scenario the orders would have meant that the Folly Creek litigation would have to be heard from the beginning.
114 Sydney Catchment Authority Annual Report 2004–2005 18. CONTINGENT LIABILITIES (Continued)
The decision of the Court of Appeal on the clarification of the orders that it made on 9 August 2004 was delivered on 15 December 2004. The court “corrected itself” and revoked the order that the report of the Referee should be rejected in full. The substantial orders made by the Court of Appeal were that the orders made by Nicholas J on 23 July 2003 be revoked and that the matter be referred back to the Supreme Court for directions.
The effect of these orders was that the findings of the Referee are preserved however, the adoption application before the Supreme Court has to be reheard.
At a Directions Hearing on 17 December 2004 the court set the matter down for rehearing of the adoption application on 23 May 2005.
Mediation of Abigroup’s claim was attempted on 17 May 2005, before Mr R L Hunter, a former Supreme Court Judge. The mediation proved to be a failure.
The SCA’s exposure in this matter stems from the failure of the two insurance companies, the Reliance and Independent. These companies wrote 40% of the insurance cover in the layer between $15M excess of $5M. A worst case scenario is that the SCA would have to meet 40% of any verdict awarded against it that exceeds the $5M primary layer.
Justice McDougall heard the rehearing of the adoption application of the referees report on 23 May 2005 to 26 May 2005. Judgement in favour of the SCA was handed down on 11 July 2005.
On 28 September 2005 the SCA was informed that Abigroup had appealed against the decision of Justice McDougall. The appeal is listed for call-over on 20 October 2005. On this day it is expected that the court will set a timetable for the future conduct of the matter. ii) Contractual Disputes – Settlement of Claim
The maximum amount able to be recovered by Abigroup, had it succeeded on all aspects of its claim, was estimated to be $8.2M.
In late December 2004 the SCA settled the claim for $2.7M plus GST of $270,000 representing a total settlement of $2,970,000.
Sydney Catchment Authority Annual Report 2004–2005 115 Investing in the future
19. RECONCILIATION OF SURPLUS FROM ORDINARY ACTIVITIES AFTER INCOME TAX TO NET CASH PROVIDED BY OPERATING ACTIVITIES 2005 2004 $’000 $’000 Operating Surplus after Income Tax 15,864 18,921
Add: Non cash items Depreciation and assets written off 11,061 9,974 Assets charged to expenditure - - Add/(Subtract): Net Movement applicable to operating activities Suppliers and Employees 5,593 (4,576) Borrowing costs 232 41 Receivables 540 (589) Income Tax (1,746) 1,722 Net Cash provided by Operating Activities 31,544 25,493
20. FINANCIAL INSTRUMENTS
a) Interest Rate Risk
Interest rate risk is the risk that the value of the financial instrument will fluctuate due to changes in market interest rates. The SCA’s exposure to interest rate risks and the effective interest rates of financial assets and liabilities, both recognised and unrecognised, at the Statement of Financial Position date are as follows:
2005 Non Floating Fixed Rate Fixed Rate Total Annualised Interest Rate <1 Year 1-5 Years >5 Years Client Rtn Bearing Financial $’000 $’000 $’000 $’000 $’000 Assets Cash 4 7,461 - - 7,465 5.29% Treasury - 6,077 - - 6,077 5.77% Corporation Receivables 13,624 - - - 13,624 N/A Total Financial 13,628 13,538 - - 27,166 Assets
Non Fixed Rate Fixed Rate Fixed Rate Total Annualised Interest <1 Year 1-5 Years >5 Years Client Rtn Bearing Financial $’000 $’000 $’000 $’000 $’000 Liabilities Borrowings - 35,462 45,474 104,717 185,653 6.63% (TCorp) Accounts 35,271 - - - 35,271 N/A Payable Total Financial 35,271 35,462 45,474 104,717 220,924 Liabilities
116 Sydney Catchment Authority Annual Report 2004–2005 20. FINANCIAL INSTRUMENTS (Continued)
2004 Non Floating Fixed Rate Fixed Rate Total Annualised Interest Rate <1 Year 1-5 Years >5 Years Client Rtn Bearing Financial $’000 $’000 $’000 $’000 $’000 Assets Cash 4 169 - - 173 5.03% Treasury - 31,083 - - 31,083 5.52% Corporation Receivables 13,845 - - - 13,845 N/A Total Financial 13,849 31,252 - - 45,101 Assets
Non Fixed Rate Fixed Rate Fixed Rate Total Annualised Interest <1 Year 1-5 Years >5 Years Client Rtn Bearing Financial $’000 $’000 $’000 $’000 $’000 Liabilities Borrowings - 9,164 84,981 91,141 185,286 6.56% (TCorp) Accounts 28,340 - - - 28,340 N/A Payable Total Financial 28,340 9,164 84,981 91,141 213,626 Liabilities b) Credit Risk
Credit risk is the risk of financial loss arising from another party to a contract or financial position failing to discharge a financial obligation thereunder. The Sydney Catchment Authority’s maximum exposure to credit risk is represented by the carrying amounts of the financial assets included in the Statement of Financial Position.
Government Other Total
2005 $’000 $’000 $’000 Receivables 13,029 595 13,624
Government Other Total 2004 $’000 $’000 $’000 Receivables 13,306 539 13,845 c) Net Fair Value
All financial instruments are carried at Net Fair Value, the values of which are reported in the Statement of Financial Position.
Sydney Catchment Authority Annual Report 2004–2005 117 Investing in the future
20. FINANCIAL INSTRUMENTS (Continued)
d) Derivatives
The SCA uses TCorp as a Debt Portfolio Manager. TCorp uses a small percentage of loans in Derivatives to maximise the portfolio performance.
2005 Non Interest Bearing Face Value: ($265,014) Coupon: 5.50% Futures Related Futures Position Bought/(sold) Total value Per 0.01% Per 0.01% 30 June 2005 $’000 Risk $ Per Contract Total Risk $ 3 year bonds (108) 10,800 -27.91 3,014.28 10 year bonds (24) 2,400 -80.69 1,936.56
2004 Non Interest Bearing Face Value: $ NIL Coupon -% Futures Related Futures Position Bought/(sold) Total value Per 0.01% Per 0.01% 30 June 04 $’000 Risk $ Per Contract Total Risk $ 3 year bonds - - - - 10 year bonds - - - -
21. ACCUMULATED FUNDS Accumulated Asset Total Equity Funds Revaluation Reserve 2005 2004 2005 2004 2005 2004 $’000 $’000 $’000 $’000 $’000 $’000 Balance at the beginning of the financial year 500,089 499,522 - - 500,089 499,522
Total 500,089 499,522 - - 500,089 499,522 Changes in equity – other than transactions with owners as owners Surplus for the year 15,864 18,921 - - 15,864 18,921 Dividend provided from accumulated funds (15,387) (18,354) - - (15,387) (18,354) Revaluation - Facility Assets - - 113,114 - 113,114 - Impairment – Work in Progress - - (18,997) - (18,997) - Impairment - Land - - (66,101) - (66,101) - Impairment - Buildings - - (2,751) - (2,751) - Total 477 567 25,265 - 25,742 567
Balance at the end of the financial year 500,566 500,089 25,265 - 525,831 500,089
22. POST BALANCE DATE EVENTS
There were no post balance date events, except as stated elsewhere in this report.
(End of Audited Financial Statements)
118 Sydney Catchment Authority Annual Report 2004–2005 Appendices
Appendix 1 – Board Meetings
Table 17- SCA board meeting attendances, 1 July 2004 – 30 June 2005
Board Member Meetings Held During Member’s Term Meetings Attended
John Whitehouse (Chairman) 12 12
Lisa Corbyn 12 11
John Asquith 12 12
Kerry Chant 12 11
Robert Corben * 9 8
Maggie Deahm 12 9
Graeme Head 12 11**
Sara Murray 12 12
Kenneth Wheelwright 12 11
* Board member from July 2004 – April 2005
* *Ian Tanner attended the meeting of 21 October 2004 as relieving Managing Director
Table 18- Corporate Governance Committee meeting attendances: 1 July 2004 – 23 March 2005
Committee Members Meetings Held During Member’s Term Meetings Attended
Kerry Chant (Chairman) 1 1
Maggie Deahm 1 1
Graeme Head 1 1
Sara Murray 1 1
John Whitehouse 1 0
Table 19- Audit Committee meeting attendances: 1 July 2004 – 30 June 2005
Committee Members Meetings Held During Member’s Term Meetings Attended
Kenneth Wheelwright (Chairman) 4 4
John Asquith* 3 2
Kerry Chant** 1 1
Robert Corben*** 3 3
Lisa Corbyn 4 4
Graeme Head 4 3
*Member from July 2004 – May 2005
** Member from May 2005 – present
***Member from July 2004 – April 2005
82 Sydney Catchment Authority Annual Report 2005 Appendix 2 – Qualifications of Executive Members Appendix 4 - Insurance The qualifications and experience of the SCA’s Board and senior The SCA’s insurance policies continued to be placed with various executive combine to enable us to carry out our responsibilities domestic, European and North American underwriters in 2004–05. under the Sydney Water Catchment Management Act 1998, the Most policies fell due for renewal on 31 May 2005. Environment Planning and Assessment Act 1979, and our operating The major insurance policies renewed during 2004–05 were: licence. Industrial Special Risks (Property), Combined Public and Product Members Liability, Professional Indemnity, and Directors and Officers Liability Insurance policies. Margaret Brodie, BA, Dip Social Studies, Dip Strategic Marketing General Manager Corporate & Property Services The insurance coverage has been tailored to meet the SCA’s business and asset management requirements. Andrew Bryan, BA (Hons), MTCP, MPIA Executive Director Policy and Governance For a more comprehensive description of the SCA’s insurance coverage, see page X of the financial section. George Dodds, Dip Civ Eng, M Eng Sc (Env Eng) General Manager, Catchment Operations and Major Projects Appendix 5 - Legal Change
Kenneth Elliott, BA, LLB Sydney Water Catchment Management Act 1998 Senior Legal Counsel During 2004–05 there were no changes to the Sydney Water Ian Landon-Jones, BE (Civil), M Eng Sc Catchment Management Act 1998 or to the regulations made under Executive Director Dam Safety the Act.
Ian Tanner, BSc (Civil Eng) Other Legislation General Manager Bulk Water Workplace Surveillance Act 2005
Barrie Turner, BSc (Hons) (Town Planning), Dip Town Planning, This Act was passed by Parliament on 22 June 2005 and will come MPIA into force on 7 October 2005. The objectives of the Act are to prohibit General Manager Environment and Planning the surveillance by employers of their employees at work without Rhonda Wheatley, BBus (Acc/Law) Grad Cert Pub Sect Mgmt, providing at least 14 days notification prior to commencement of the FCPA, FAICD surveillance. The Act also requires an employer to develop an email Executive Director Finance and Procurement and internet access policy that addresses the employee’s access to the internet and the use of the employer’s email system. Appendix 3 – Principal Legislation & Regulation Environmental Planning and Assessment Amendment Operating Licence (Infrastructure and Other Planning Reform) Act 2005 On 2 July 1999, the Governor of NSW granted the SCA an This Act was passed by Parliament on 9 June 2005 and came operating licence under section 25 of the Sydney Water Catchment into force on 1 August 2005. The Reform Act inserted a new Management Act 1998. The licence was amended under section 27 Part 3A into the Environmental Planning and Assessment Act of the Act, effective 19 April 2000. 1979 which provides for the environmental assessment and Water Management Licence approval of major projects. The objectives of this legislation are to provide a single point of assessment and approval process On 23 April 2001, the Water Administration Ministerial Corporation in those instances where the Planning Minister declares that (the Department of Infrastructure, Planning and Natural Resources a project is a critical infrastructure project essential for the (DIPNR)) granted the SCA a water management licence, pursuant state, for economic, environmental or social reasons. to Part 9 of the Water Act 1912. The licence is for a term of 20 years. It was required to be reviewed within six months of the date of issue and, thereafter, before the end of each five-year period for the term of the licence.
Sydney Catchment Authority Annual Report 2005 83 Appendices
FOI reques ts 2004-2005 Appendix 6 - Current Legal Matters R eques ts 2000-01 2001-02 2002-03 2003-04 2004-05 F O I R eques ts rec eiv ed: In 2004–05, SCA had carriage of the following legal matters. New (including transferred in) 2 1 2 10 1 Brought forward from previous period 0 0 0 0 0 T o ta l to be pro c es s ed 2 1 2 10 1 f Intervention by the SCA in matter of Smith & Sonter versus Completed requests 2 1 2 10 1 Wollondilly Shire Council. The Land and Environment Requests transferred out 0 0 0 0 0 Withdrawn requests 0 0 0 0 0 Court found in favour of the SCA in December 2004 T o ta l pro c es s ed 2 1 2 10 1 U nfinis hed reques ts (c a rried fo rw a rd) 0 0 0 0 0 f Warragamba Dam Auxillary Spillway Project – Contractual R es ults o f F O I reques ts : Disputes Notified to the Superintendent: the matter was Granted in full 2 0 0 4 1 Granted in part 0 1 1 4 0 settled on mutually agreeable terms in December 2004 Refused 0 0 1 2 0 Deferred 0 0 0 0 0 f Gundungurra – Native Title Claim – Land in Special Requests requiring formal consultation 0 1 1 5 3 T o ta l c o ns ulta tio ns 2 2 3 15 4 Areas. At 30 June 2005, the matter was ongoing R eques ts gra nted in pa rt o r refus ed - ba s is o f dis a llo w ing o r res tric ting a c c es s : f Gundungurra Native Title Claim – Land Under Stored Waters s.19 application incomplete. – Warragamba Dam. At 30 June 2005, the matter was ongoing Wrongly directed 0 0 0 1 0 s.22 deposit not paid 0 0 0 1 0 s.25(1)(a1)diversion of resources 0 0 0 0 0 f Warragamba Dam Auxiliary Spillway Project – Folly Creek Claim. s.25(1)(a) exempt 0 1 1 4 0 s.25(1)(b), (c), (d) otherwise unavailable 0 0 0 0 0 At 30 June 2005, the matter was before the court and is ongoing. s.28(1)(b) documents not held 0 0 1 0 0 s.24(2) deemed refused, over 21 days 0 0 0 0 0 Appendix 7 – Freedom of Information s.31(4) released to medical practitioner 0 0 0 0 0 T o ta l 0 1 2 6 0 Freedom of Information (FOI) statistics for 2004–05 are shown below, C o s ts a nd fees o f reques ts pro c es s ed: together with the statistics for the previous four years. Assessed costs $60 $90 $60 $420 $30 Fees received $30 $30 $60 $270* $30 Table 20 – Freedom of information statistics D is c o unts a llo w ed: Public interest 0 0 0 1 0 Financial hardship: pensioner/child 0 0 0 0 0
Financial hardship: non-profit organisation 0 0 0 0 0 T o ta l 0 0 0 1 0 D a ys to pro c es s 0-21 days 2 1 2 4 1 22-35 days 0 0 0 6 0 Over 35 days 0 0 0 0 0 T o ta l pro c es s ed 2 1 2 10 1 P ro c es s ing tim e: 0-10 hours 2 1 2 8 1 11-20 hours 0 0 0 2 0 21-40 hours 0 0 0 0 0 Over 40 hours 0 0 0 0 0 T o ta l pro c es s ed 2 1 2 10 1 R ev iew s a nd a ppea ls fina lis ed: Internal reviews 0 1 0 1 0 Ombudsman's reviews 0 1 0 0 0 Administrative Decisions Tribunal appeals 0 0 0 0 0 Interna l rev iew deta ils - gro unds o n w hic h reques ted U pheld: Access refused 0 0 0 0 0 Exempt matter 0 1 0 1 0 Unreasonable charges 0 0 0 0 0 Charge unreasonably incurred 0 0 0 0 0 T o ta l upheld 0 1 0 1 0 V a ried: Access refused 0 0 0 0 0 Exempt matter 0 0 0 0 0 Unreasonable charges 0 0 0 0 0 Charge unreasonably incurred 0 0 0 0 0 T o ta l v a ried 0 0 0 0 0 T o ta l 0 1 0 1 0 * One applicant failed to pay the initial application fee
84 Sydney Catchment Authority Annual Report 2005 Appendix 8 – Summary of Affairs available for inspection. Copies can also be obtained by contacting Section 1 - Policy Documents the SCA’s FOI Co-ordinator at the address shown below.
Under the Freedom of Information Act 1989, the SCA’s stakeholders, The Statement of Affairs provides information on: including members of the community, are able to have access to f the structure and functions of the SCA information in the following policies and procedures held by the SCA. f the ways in which the functions of the SCA f SCA Business Plan 2002-2007 affect members of the public f Access to Public Information f how the public can participate in the formation of the f Catchment Protection Scheme SCA’s policy and the exercise of the SCA’s functions f Closure of SCA Recreational Areas f the various types of documents usually held by the SCA f Code of Conduct f procedural arrangements for public access to the SCA’s documents f Corporate Incident Management Policy f provision for the amendment of the SCA’s records f Customer Complaints Policy and Procedure concerning the personal affairs of a member of the public. f Cultural Heritage Policy Section 3 – Contact Arrangements f Dealing With Offences Under the Sydney Water All applications for access to documents held by the SCA Catchment Management (General) Regulation 2000 (other than policy documents) should be in writing, accompanied f Energy Management Policy by an application fee of $30 and marked to the attention of the FOI Coordinator. f Environment Plan 2000-2005 The application should be addressed to: f Environment Policy the FOI Coordinator f Environmental Impact Assessment Policy sydney Catchment Authority f Equal Employment Opportunity Management Plan po Box 323 penrith NSW 2751 f Ethnic Affairs Priority Statement Access to policy documents, unless otherwise stated, is free f Expert Reference Panel – Charter and Procedures of charge and access can be arranged by contacting the FOI f Freedom of Information Procedures Coordinator on telephone number 4725 2103, facsimile 4725 2520, by email on [email protected], or in person at the address f Healthy Catchments Program below between 8.30am and 5.00pm, Monday to Friday. f Local Government Reference Panel – Charter and Procedures sydney Catchment Authority f Privacy and Personal Information Policy level 2, 311 High Street penrith NSW 2750 f Privacy Management Plan f Protocol For State Environmental Planning Policy (Sydney Metropolitan Water Supply) 2004 f Regional Consultative Committee – Charter and Procedures f Special Areas Strategic Plan of Management f Wingecarribee Swamp and Special Area Plan of Management
Section 2 – Statement of Affairs
The SCA’s most recent Statement of Affairs is available on the SCA’s website. Copies of the statement are held in the SCA’s library and are
Sydney Catchment Authority Annual Report 2005 85 Appendices
Appendix 9 - Schedule of Charges
Table 21 - SCA pricing schedule 2004–05
Charges for 2004–05 Sydney Water Corporation Fixed availability charge per calendar month $ 5.366 million Volumetric charge per megalitre $ 116.25 Wingecarribee Shire Council Volumetric charge per megalitre $ 105.08
Shoalhaven City Council Volumetric charge per megalitre $ 105.08
Retail Customers Annual service charge (unfiltered water) for connection of nominal diameter: 20mm $ 75.00 25mm $ 117.20 30mm $ 168.75 32mm $ 192.00 40mm $ 300.00 50mm $ 468.75 80mm $ 1,200.00 100mm $ 1,875.00 150mm $ 4,218.75 200mm $ 7,500.00 larger than 200mm (nominal diameter)2 * 75/400 Volumetric charge (unfiltered water – per kilolitre $ 0.754 Volumetric charge (raw water – per kilolitre) $ 0.44
Schedule of Charges for Regulated Water Supply Services for 2005–06 One credit card is used as the corporate credit card with a credit limit of $15,000. All other credit cards have a limit of $2,000. Expenditure On 12 September 2000, IPART determined a medium term price via the corporate credit card occurs through the SCA’s electronic path for the SCA covering the period from 1 October 2000 to procurement system. The SCA limits the establishment of vendor 30 June 2005. In June 2005 IPART determined to extend this price accounts by using corporate credit card facilities. path to cover the period from 1 July 2005 to 30 September 2005. Expenditure on credit cards issued to the executive is certified by the Note: On 2 September 2005, IPART released its final determination of cardholder and independently verified by the cardholder’s supervisor. the SCA’s prices to apply from 1 October 2005 to 30 June 2009. Authorisation of payment is undertaken on a monthly basis by the Appendix 10 - Credit Card Usage - Credit Card Executive Director, Finance and Procurement. Certification During 2004–05 all MasterCard credit card payments were made on The SCA operates MasterCard credit card facilities with Westpac time and no interest charges were incurred. Banking Corporation. The credit card expenditure is paid by electronic funds transfer directly from the SCA’s bank account on the second day of each month. All expenditure is verified by the cardholders (SCA executive) by the fifteenth day of the month, when allocations are made.
86 Sydney Catchment Authority Annual Report 2005 Appendix 11 - Payment of Accounts Payment of Accounts
Table 22 shows the aged analysis of accounts payable as at the end of each quarter of 2004-05. The table shows that with the exception of $6,032 all other accounts payable fall within the 30-day range. The SCA’s target is to settle all accounts payable within 30 days trading terms or in accordance with the terms specified on the vendor’s invoice.
Table 22: Aged analysis accounts payable in dollars at 30 June 2005 Aged Analysis accounts payable in dollars at the end of each Quarter for the 2004-2005 year Quarter Current (ie within Less than 30 days Between 30 and Between 60 and More than due date) Overdue 60 days overdue 90 days overdue 90 days overdue $ $ $ $ $ Sep-04 1,954,234 180,281 512 9,101 0 Dec-04 2,006,681 327,760 457,423 580,942 0 Mar-05 2,124,686 97,244 2,037 760,995 0 Jun-05 11,764,204 2,245 1 6,032 0
Interest Awarded
During the year $3.40 (excluding GST) was incurred on overdue accounts as follows:
Interest incurred on late payment of Cabcharge account $1.18 Interest incurred on Energy Australia account $2.22
Payment Performance for 2004-05
As anticipated, the SCA has continued to improve its payment performance since the introduction of the finance and finance related management systems in 2003.
The SCA has reviewed its creditor payment terms in accordance with payment terms stated on the invoices to ensure consistency. Additionally, the credit master files have been updated in the SCA’s SUN financial management system.
Table 23 - Creditors Payment Summary by Quarter for the year 2004-05 Total Accounts Paid on Time Quarter Target Actual $ Total Amount paid % % $ $ Sep-04 100 95.40 29,766,141 31,194,446 Dec-04 100 96.04 23,489,608 24,459,215 Mar-05 100 86.09 19,486,253 22,634,473 Jun-05 100 92.41 31,028,828 33,576,757
Sydney Catchment Authority Annual Report 2005 87 Appendices
35,000 Figure 8 – Creditors payment summary by dollars 2004-05 by quarter
30,000
25,000
20,000 ($'000's) 15,000
10,000
5,000
Q1 $ Q2 $ Q3 $ Q4 $ 0 - 30 Days Overdue $29,766,141 $23,489,608 $19,486,253 $31,028,828 Between 30 and 60 Days Overdue $1,252,766 $411,278 $984,890 $2,051,449 Between 60 and 90 Days Overdue $136,901 $223,359 $814,081 $50,706 More than 90 Days Overdue $38,638 $334,969 $1,349,249 $445,774 Total $31,194,446.01 $24,459,215.22 $22,634,472.75 $33,576,757.08
120.00% Figure 9 – Creditors payment summary by percentage – 2005 by quarter
100.00%
80.00%
60.00%
40.00%
20.00%
0.00% Q1 Q2 Q3 Q4 Total 2004–05 0 - 30 Days Overdue 95.40% 96.04% 86.09% 92.41% 92.77% Between 30 and 60 Days Overdue 4.01% 1.68% 4.35% 6.11% 4.20% Between 60 and 90 Days Overdue 0.43% 0.91% 3.60% 0.15% 1.10% More than 90 Days Overdue 0.11% 1.37% 5.96% 1.33% 1.94%
88 Sydney Catchment Authority Annual Report 2005 Appendix 12 – SCA Grants
Grants to Individuals Hawkesbury-Nepean CMA - Catchment Protection Scheme $ 434,000 Southern Rivers CMA - Catchment Protection Scheme $ 186,000 Southern Rivers CMA - Erosion Control Project Kangaroo Valley $ 200,000 Sub Total $ 820,000 Grants to Groups (Catchment Protection and Improvement Grants) Krawarree Wild Dog Association $ 1,250 Friends of Indigo Creek $ 10,000 Moss Vale Landcare Group Inc $ 8,000 Windellama Landcare Inc $ 7,306 Sub Total $ 26,556 Grants to Other Agencies Shoalhaven City Council (administrator) Regional Illegal Dumping Squad $ 35,000 National Parks and Wildlife Service $ 2,657,492 Department of Energy, Utilities and Sustainability $ 8,000,000 Environment Protection Agency - Pesticide Awareness Project $ 23,684 Lithgow City Council for Lithgow and Wallerawang Sewerage Collection Systems $ 107,500 Wingecarribee Shire Council for Bowral and Mittagong Sewerage Collection Systems $ 185,000 Wingecarribee Shire Council for Bundanoon and Berrima Sewerage Collection Systems $ 65,000 Wingecarribee Shire Council - Installation of new sewerage system at Oxley Drive $ 170,000 NSW Police - Training $ 3,950 Sub Total $ 11,247,626 Total Grants 2004-2005 $ 12,094,182 Sponsorships Australian Water Association - 2005 Heads of Water & 2006 Waterscape $ 8,500 Major Brisbane Festivals Pty Ltd - 8th International River Symposium $ 8,000 Engineers Australia - 29th Hydrology & Water Resources Symposium $ 5,000 Total Sponsorships 2004-2005 $ 21,500
Sydney Catchment Authority Annual Report 2005 89 Appendices
Appendix 13– Overseas Visits by Staff The Minister approved the following overseas visits for SCA staff members for 2004–05
Name: Christobel Ferguson Dates of visit: 17 – 28 September 2004 Destination: Marrakech, Morocco Event: International Water Association World Water Congress and Exhibition, where Ms Ferguson presented a paper and co-hosted a workshop: ‘Application of Genotyping Methods to Assess Pathogen Risks from Cryptosporidium in Drinking Water Catchments’.
Name: Brian Spies, Manager Science Dates of visit: 8 – 14 October 2004 Destination: Colorado, USA Event: Society of Exploration Geophysicists Annual Meeting of which Dr Spies is the society’s First Vice President.
Name: Ian Landon-Jones, Executive Director, Dam Safety Dates of visit: 30 April 2004 – 15 May 2005 Destination: Tehran, Iran Event: International Commission on Large Dams (ICOLD) 2005 Annual Meeting. Mr Landon-Jones also attended a symposium, workshop and study tour and two ICOLD Technical Committee meetings. Mr Landon-Jones is a member of ICOLD’s technical committees on Seismic Aspects of Dam Design and Dam Surveillance.
Appendix 14 – Training and Development for Staff
Training Staff Numbers Staff Numbers 2003–04 2004–05 Orientation 12 34 Communications 73 24 Computer education 154 192 Engineering/Technical /Para Professional 68 65
Staff relations - general 24 – Staff relations - performance management * –
f STEP – Module 1 253 f STEP – Module 2 242 f STEP – Module 3 f STEP – Module for Managers – 206
Environment 92 105
Incident Management
f AIIMS five-day course 17 14 f AIIMS awareness course 58 11 f AIIMS refresher course – 15
Leadership 3 1 Management 194 175
90 Sydney Catchment Authority Annual Report 2005 Training Staff Numbers Staff Numbers 2003–04 2004–05
Contracts management
f Contract shells 88 1 f Project management 30 4
Office management 1 2 OHS&R 297 259 Operations 227 89 Personal development 9 36 Quality** 10 137 Service: customer complaint – 1 Staff temporary appointments in higher positions 106 98 SCA supported study
f Business related 9 11 f Environment related 3 1 f Public policy related 1 – Total 1,476 1,998
* STEP Performance management program introduced in 2004–05. (See KRA 6.)
**Increase due to introduction of International Financial Reporting Standards in 2004–05. (See KRA 3.)
Appendix 15 - Categories of Staff over Three Years
Ca tegory 2002-03 2003-04 2004-05
Chief Executive * 0 1 1 Managing Director 1 1 1 SCA Executive 1 8 8 8 Contract Staff 2 & 3 39 40 13 Award Staff 207 237 273
Total Numbers 4 & 5 255 286 295
Total FTE Numbers 239.7 266.78 270.94
* Lisa Corbyn was appointed as the SCA's Chief Executive and Graeme Head was appointed Managing Director on 24 September 2003. Chief Executive position not counted in SCA staff numbers.
Footnotes 2002-03 2003-04 2004-05 1 Women in this category 2 2 2 2 Women in this category 9 11 3 3 Temporaries in this category 2 1 1 4 No of employees in this category with an FTE of less than 1 32 41 45 5 FTE equivalent for employees in Footnote 4 16.71 21.78 21.34
Sydney Catchment Authority Annual Report 2005 91 Appendices
Appendix 16 – Significant Committees Established Finalising the negotiation of a new Joint Management or Abolished Agreement and Service Level Agreement between Significant committees are defined as those established by the SCA Department of Environment and Conservation and SCA Board or under memoranda of understanding between the SCA and for the management of the transferred Special Areas other agencies. The SCA’s Corporate Governance Committee was f Continued sound financial management of the SCA abolished on 23 March 2005. The Business Plan Working Group was f Continued high level cooperation with Sydney Water and other established on 23 March 2005. key agencies in managing the response to Sydney’s drought Appendix 17 – Staff Above Senior Executive Service f Delivering effective SCA Board processes, which provide strong Level 5 and timely corporate governance and operational policy guidance. Lisa Corbyn Appendix 18 – Waste Reduction and Purchasing Plan Position Chief Executive Officer Implementation SES Level 8 (as Director General of the Department of Waste Avoidance and Minimisation Environment and Conservation) The SCA promotes the use of electronic documents, double- Remuneration $10,000 sided printing, email and recycled paper. The 2004–05 Ms Corbyn has performed in a satisfactory manner and has: waste audit revealed that since the 2003-04 waste audit the f contributed substantially to the SCA Board SCA had achieved a 16 per cent decrease in the amount deliberations and corporate governance programs of waste being sent to landfill. This included a 23 per cent through the internal Audit Committee decrease in the amount of paper being sent to landfill. f provided strategic positioning to the SCA’s future Purchase of A4 and A3 reams of paper increased by 10 per directions and service delivery including towards the cent over the previous year and the 334 toner cartridges used IPART determination and Metropolitan Water Plan represented a 16 per cent increase on the 287 cartridges f built strong links between the SCA and DEC for used in 2004. In part, the increase in paper and cartridge environment and conservation outcomes use may be attributable to the addition of two printers and Graeme Head increased workload. The SCA is addressing the increase in paper and cartridge use through an environmental awareness Position: Managing Director module, delivered as part of the Orientation Program. SES Level 6 Remuneration $257,000 Resource Recovery An annual performance review was conducted on 3 August 2005 for All SCA staff have access to a paper, cardboard and newspaper the 2004–05 financial year. Key achievements included: recycling service and seven site offices have access to a mixed f Strong leadership in delivering SCA components of the recycling service. All used toner cartridges are returned to the Government’s Metropolitan Water Plan – notably, in accelerated manufacture for reuse. delivery of the SCA’s deep water access projects The annual internal waste audit estimated that 6,319 kilograms of f Successful articulation of the SCA’s funding requirements print material was recovered from SCA offices during 2004–05. through IPARTS pricing determination for the period 2005-2009 Overall, a total of 9,539 kilograms of material was recycled from f Completion of the review of the five year statutory SCA offices. This equated to 228 kilograms of recycled waste per review of the SCA’s enabling legislation, the Sydney staff member. Recycled material included writing paper, newspaper, Water Catchment Management Act 1998 cardboard, glass, aluminium and liquid paper containers. As well, f 100% compliance with health guideline values in the 282 kilograms of organic waste was diverted from landfill through the quality of bulk water supplied to the SCA’s customers SCA’s worm farms. f Strong leadership in delivering the SCA’s conversion Contractors are required to recycle or divert waste wherever possible to the new Australian Equivalent International and ensure that machinery is energy efficient and that waste is Financial Reporting Standards (AEIFRS) recycled at a licenced facility. f Continued building of the SCA’s compliance program
92 Sydney Catchment Authority Annual Report 2005 Graph 10 – Volume and type of waste sent to landfill from SCA audit sites over five years
(kilogram per employee per year) Paper Organic 20 (compostibles) Plastic Glass 15 Other Organic (textiles) 10 Ferrous/Non-ferous
5
0
2000 – 2001 2001 – 2002 2002 – 2003 2003 – 2004 2004 – 2005 kg/emp/year Audit Audit Audit Audit Audit
The use of recycled material The agreement specifies the water quantity and quality criteria for each supply point. It also requires an undertaking by each party It is SCA policy to purchase and use recycled or environmentally to exchange information, billing and payment arrangements. The responsible materials and to promote the use of electronic agreement also provides for charges, and adjustments to charges, documents, double sided printing and email. Approximately 87 per to be made for the supply of water that varies in quality from that cent of the paper we use has a minimum of 60 per cent recycled specified in the agreement. The second review of this agreement was content. In 2004–05, the amount of paper purchased with recycled started towards the end of 2004–05. content increased by 6 per cent. Approximately 97.5 per cent of externally printed documents are printed on paper with a minimum Negotiations regarding supply agreement with Shoalhaven City of 60 per cent recycled content. Reports such as our annual reports Council are continuing albeit at a slower than anticipated pace. and environmental reports are printed on recycled paper and the Appendix 20 – Cost of 2004–05 Annual Report numbers of printed copies have been reduced as the documents are now available electronically. TO BE INSERTED Note how many printed copies and how many CDs this represented. Graph 10 - Volume and type of waste sent to landfill from SCA audit sites over five years
(kilogram per employee per year)
Appendix 19 - Guarantee of Service The SCA and Sydney Water have entered into an agreement for the SCA to supply bulk raw water to Sydney Water, according to section 22 of the Sydney Water Catchment Management Act 1998. The initial agreement between the parties was amended, effective from 21 August 2002. Negotiations to renew the agreement commenced in 2005 and a new agreement will be in place before the current agreement expires in December 2005.
Sydney Catchment Authority Annual Report 2005 93 Appendices
Appendix 21 - Cultural Heritage Assets The SCA is responsible for managing cultural heritage items including dams and associated infrastructure, weirs, homesteads, mining infrastructure, walking tracks, bridges and innumerable sites of significance to Indigenous communities.
The SCA and DEC jointly manage cultural heritage within the Special Areas. The SCA and Sydney Water jointly operate the Historical Research and Archive Facility, which provides an important resource for the agencies and the public.
Table 24 - Listings on draft SCA Heritage and Conservation Register1
Heritage items Condition 2004-20052
A. Engineering Heritage
Warragamba Supply System
Warragamba Dam Good
f Crest gantry crane Good – Major upgrade works completed
f Crest gates Good
f Dam outlets Good – Major upgrade works well advanced
f 18 tonne cableway (Upper Tail Tower) Fair
f Haviland Park, Warragamba Dam Fair Good – Drum and radial gate stop log rails were removed and replaced due to low f Main dam wall water level f Suspension Bridge Poor – Tenders called for its demolition
f Megarrity’s Bridge Good – Structural assessment in progress
f Valve House Good – Undergoing upgrade in conjunction with dam outlet upgrade Good – Substantial safety upgrade completed, with additional access ladders and Warragamba-Prospect Pipelines 1 & 2 platforms provided Warragamba Emergency Scheme
Heritage items Condition 2004-20052 Complete refurbishment under way as part of the Metropolitan Water Plan - f Warragamba Emergency Pumping Station No. 9 Warragamba Deep Storage Recovery Project. Some items retained for heritage purposes f Warragamba Weir Good
Upper Nepean and Woronora Supply Systems
Avon Dam Good – Upgrade of access road ongoing
Cataract Dam Good
Cordeaux Dam Good – Installation of external walkway along wall Poor – The scheme was an 1880s drought system, which was replaced by the Hudson’s Emergency Scheme Upper Canal. It now exists only as a relic wih no operational purpose, and is managed as a ruin. Nepean Dam Good – Cleaning of seepage drains undertaken
Prospect Reservoir and surrounding area Good
94 Sydney Catchment Authority Annual Report 2005 Table 24 - Listings on draft SCA Heritage and Conservation Register1
Heritage items Condition 2004-20052
Prospect Reservoir Valve House Good
Upper Canal System Fair to Good f Broughton’s Pass Weir Good – Refurbished stop logs f Nepean Tunnel Good f Pheasants Nest Weir Good – Refurbished isolating gate. Upgrade of access track ongoing
Upper Cordeaux Dam No. 1 Fair to Good
Upper Cordeaux Dam No. 2 Fair to Good f Cordeaux Manor Good
Woronora Dam Good
Woronora-Penshurst Pipeline Good
Upper Nepean Scheme Compensation Weirs
Brownlow Weir Good
Cobbitty Village Weir Partially demolished
Menangle Weir Good
Mt Hunter Rivulet Weir Good
Thurns Weir Good
Wallacia Weir Good
Blue Mountains Supply System
Cascades dams Good – New pumping station being constructed at Upper Cascades as part of the
Greaves Dam Good
Medlow Bath Dam Good
Woodford Creek Dam Good
B. Historic Buildings
Arnprior Poor to Fair
Barrallier Poor - Post Office and shearing shed fenced. Asset protection zone maintained
Bowmans Hill Fair
Cookanulla Poor to Fair
Glen D’Or Poor to Fair
Joe Deacon’s Hut Poor
Kedumba Slab Hut Fair - Some stabilisation works undertaken. Asset protection zone maintained
Khama Lea Poor to Fair.
La Vista Poor
Sydney Catchment Authority Annual Report 2005 95 Appendices
Table 24 - Listings on draft SCA Heritage and Conservation Register1
Heritage items Condition 2004-20052
Mayfield Fair to Good - Main residence and most outbuildings being used by agricultural
Ooranook Fair
St Senan’s Church Good
Steven’s property ruins Good
Virginia Fair
Walker’s homestead Fair
Windmill Hill Good – Site stabilised in line with Conservation Management Plan
Yerranderie Court House Good
Yerranderie Police Station Good
C. Landscape Items
Wingecarribee Swamp Poor - Natural remediation is occurring with native vegetation stabilising site
Notes 1. Non-indigenous cultural heritage only 2. Condition descriptors:
Good = Currently fit-for-purpose (operational) or generally intact, or both. Fact Sheets Fair = Not currently fit-for-purpose (operational), but stable and requiring only moderate repairs Healthy Catchments program Poor = Not fit-for-purpose (operational), unstable and requiring extensive Drought Breaking Flood restoration works SCA general information series Appendix 22 - SCA Publications Videos The SCA produces brochures, fact sheets, reports and other material, in printed and electronic forms, relating to the SCA and its activities. A Safe Dam – A Sure Supply The material is available by contacting the SCA Publications Officer The Warragamba Story at Level 2, 311 High Street Penrith, or by phoning 02 4725 2516. Warragamba Dam Auxiliary Spillway Publications are also available for downloading from our website Reports www.sca.nsw.gov.au SCA Annual Reports Brochures SCA Annual Environment Reports Dams of Greater Sydney and Surrounds SCA Annual Environment Compliance Reports SCA Annual Water Quality Monitoring Reports Warragamba Annual Reports on Implementation of SASPoM Upper Nepean Annual Report on Implementation of WSSAPoM Shoalhaven Audits of the Hydrological Catchments Managed by the SCA Woronora Blue Mountains Other
How to Make a Complaint or Offer a Compliment SCA Business Plan 2002-2007 Privacy Laws, the Sydney Catchment Authority, and You SCA Environment Plan 2000-2005 Catching the Cleanest Water Energy Management Plan 2001-2006 Special Areas – ‘What you can and can’t do in the Sydney Water Bulk Raw Water Quality Management Plan Supply Catchments’ Special Areas Strategic Plan of Management (SASPoM) – Background
96 Sydney Catchment Authority Annual Report 2005 Special Areas Strategic Plan of Management (SASPoM) Names of significant committees & membership Introduction Wingecarribee Swamp and Special Area Plan of Management Significant committees established (WSSAPoM) or abolished & their functions Introduction, Appendix 16 Sydney Catchment Authority Operating Licence Memoranda of Understanding - NSW Health, EPA, DLWC Sydney Catchment Authority Statement of Affairs Organisation chart indicating Sydney Catchment Authority Summary of Affairs functional responsibilities Introduction Expert Reference Panel – Charter and Procedures Local Government Reference Panel – Charter and Procedures Summary review of operations KRAs 1 – 7 Regional Consultative Committee – Charter and Procedures Legal Change: Acts Hawkesbury-Nepean Experimental Environmental Flow Strategy & subordinate legislation KRA 7, Appendix 5 Pollution Source Risk Management Plan Factors affecting achievement Joint Projects of operational objectives KRA 3 Guide for New Residents – DIPNR and SCA Management & activities of the SCA Introduction, KRAs 1 – 7 Catchment Protection Scheme – DIPNR and SCA Feral Animals – RLPB, NPWS and SCA Research & development KRA 4 Weeds – DIPNR and SCA Number of officers and employees by category Appendix 15
‘Sustaining the Catchments: The Regional Plan for the drinking water Personnel & industrial relations policies & practices KRA 6 catchments of Sydney and adjacent regional centres’ – printed for public exhibition period – DIPNR and SCA. Disability plans KRA 6
2004-2005 Annual Report Compliance Checklist Land disposal KRA 7 This compliance checklist directs the reader to information Publications & other information relating to Treasury and legislative requirements for annual available to public KRA 5, Appendixes 8 and 22 reporting for 2004–05. Details taken to improve performance KRAs 1-7 Annual Reports (Statutory Bodies) Act 1984 Time for payment of accounts Appendix 11 Letter of Submission to the Minister Introduction Risk management & insurance activities KRA 3, Appendix 4 Legal Change - significant judicial decisions Appendix 5 Overseas visits by employees and officers Appendix 13 Budgets KRA 3 Consumer response KRA 5 Financial statements Audited financial statements Guarantee of service Appendix 19 Freedom of information Appendix 7 Ethnic affairs priorities statements and agreements KRA 6 Annual Reports (Statutory Bodies) Regulation 2005 Occupational health and safety KRA 6 Manner and purpose of establishment Inside front cover Budgets KRA 3 Principal legislation Introduction, KRA 7, Appendix 3 Waste Appendix 18 Aims & objectives of the SCA Inside front cover Audited financial statements Audited Financial Statements SCA access & contact details Back cover External costs incurred in the production Names, qualifications & appointment of annual report Appendix 20 of board members & attendance Investment performance Note to financial statements at board meetings Introduction, Appendix 1 Liability management performance Note to financial statements Names, offices & qualifications of senior officers Introduction, Appendix 2 and 17 Performance and numbers of executive officers KRA 6, Appendix 17
Sydney Catchment Authority Annual Report 2005 97 Appendices
Funds granted to non-government Freedom of Information Act 1989, Freedom of Information community organisations KRA 4, Appendix 12 Regulation Freedom of Information Manual
Consultants costing equal Freedom of information KRA 7, Appendix 7 to greater than $30,000 KRA 3 Independent Pricing and Regulatory Tribunal Act 1992 Consultants costing less than $30,000 KRA 3 Implementation of price determination Appendix 9 Major equal employment opportunity outcomes KRA 6 Privacy and Personal Information Protection Act 1998 Major planned EEO outcomes for 2006-07 KRA 6 Privacy management KRA 7 Table of trends in (A) representation Heritage Act 1977 and (B) distribution of EEO groups KRA 6 Cultural heritage assets Appendix 21 Payment of accounts Appendix 11 Note: Where a Treasury or legislative requirement for information Premier’s Memorandum has been duplicated, this checklist identifies the requirement under Funds granted to non-government each heading. community organisations (91-34) KRA 4, Appendix 12
Consultants costing equal to or greater than $30,000 (2002-07) KRA 3
Government energy management policy (98-35) KRA 7
Electronic service delivery (00-12) KRA 5, Appendix 22
Treasury Circular
Equal employment opportunity outcomes (02/17) KRA 6
Major planned EEO outcomes for 2006-07 (02/17) KRA 6
Table of trends in (A) representation and (B) distribution of EEO groups (02/17) KRA 6
Payment of accounts (01/12) Appendix 11
Total external costs incurred in the production of the annual report Appendix 20
Availability of annual report on internet and website (00/16) Inside cover
Investment performance c (01/02) Note to financial statements
Liability management performance (01/02) Note to financial statements
Performance and numbers of executive officers (00/24) KRA 6, Appendix 17
Credit card certification (99/6) Appendix 10
Public Sector Employment and Management Act 2002
Disability plans KRA 6
Disability Services Act 1993
Disability plans KRA 6
98 Sydney Catchment Authority Annual Report 2005 Glossary of Terms
Catchment An area where water is collected by the natural landscape. In a catchment, all rain and runoff water eventually flows into a creek, river, lake or ocean or into the groundwater system
Environmental flows A release of water from dams to provide a flow of water in a river, stream or other natural waterway that mimics natural seasonal flows and restores and maintains the ecology of the waterway.
Land Includes rivers, streams and other watercourses.
Limnology The study of bodies of fresh water with reference to their physical, geographical, biological and other features. Megalitre (ML) Measurement of volume equal to one million litres.
Operating storage The amount of water the SCA can operationally extract from the dams when they are full.
Pathogens Micro-organisms that can be found in water and which can sometimes cause illness in humans.
Raw water Water that has not been subjected to any form of treatment.
Special Areas Land, mostly around drinking water dams, that were originally set aside for the protection of drinking water quality. Water storages The SCA’s dam walls, pumps and other works used for – or with respect to – the extraction and storage of:water in rivers and lakes water occurring naturally on the surface of the ground sub-surface waters Water supply infrastructure Includes the SCA’s dams, pipelines or connected or associated works, and monitoring devices.
Yield The amount of water that can be withdrawn from a reservoir on an ongoing basis with an acceptably small risk of reducing the reservoir storage to zero (Nevada Division of Water Planning USA)
List of Contractions
AEIFRS Australian Equivalent of International Financial Reporting Standards
ANZSOG Australian New Zealand School of Government
APESMA Association of Professional Engineers, Scientists and Managers, Australia
ASU Australian Services Union
AwwaRF American Water Works Association Research Foundation
CMA Catchment Management Authority
CRC Cooperative Research Centre
CSIRO Commonwealth Scientific & Industrial Research Organisation
DEC Department of Environment and Conservation
DIPNR Department of Infrastructure, Planning and Natural Resources
DoC Department of Commerce
DPI Department of Primary Industry
EAPS Ethnic Affairs Priority Statement
EEO Equal Employment Opportunity
Sydney Catchment Authority Annual Report 2005 99 Appendices
GST Goods and Services Tax
HCP Healthy Catchments Program
ICOLD International Commission on Large Dams
IPART Independent Pricing and Regulatory Tribunal
KRA Key Result Area
GIS Geographic Information System
MOU Memorandum of Understanding
OHS&R Occupational Health, Safety and Rehabilitation
PENGOs Peak Environment Non-Government Organisations Committee
RAPs Rectification Action Plans
RLPB Rural Lands Protection Board
RTA Roads and Traffic Authority
SASPoM Special Areas Strategic Plan of Management
SCA Sydney Catchment Authority
SEPP 58 State Environment Planning Policy 58
SWCM Act Sydney Water Catchment Management Act 1998
Sydney Water Sydney Water Corporation
WQRMF Water Quality Risk Management Framework
WSSAPoM Wingecarribee Swamp & Special Area Plan of Management
100 Sydney Catchment Authority Annual Report 2005 Sydney Catchment Authority Annual Report 2005 101