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Annual Report 2007-08

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annual report 2007-08 Established 1950 Gippsland Water received a ‘Bronze Award’ in the prestigious Australasian Reporting Awards for its 2006-07 Annual Report. (03) 5174 0576 2658 IMAGE DIRECT Gippsland Water Hazelwood Road PO BOX 348 Traralgon VIC 3844 FREECALL: 1800 066 401 Facsimile: (03) 5174 0103 Email: [email protected] Website: www.gippswater.com.au ABN 75 830 750 413 GIPPSLAND WATER AT A GLANCE - AS AT 30 JUNE 2008 Water Gippsland Water operates 17 water treatment plants and obtains its water from a variety of sources including reservoirs, surface water and groundwater. Water services include: • 59,822 customers serviced (connected) • 60,201 megalitres of water supplied • 2,009 kilometres of water mains Waste Gippsland Water operates 14 wastewater treatment plants, two ocean outfalls and one prescribed waste management facility. Wastewater services include: • 51,239 customers serviced (connected) • 27,156 megalitres of treated wastewater • 1,496 kilometres of sewer mains Waste materials Gippsland Water operates a prescribed waste management facility known as the Soil and Organic Recycling Facility (SORF) at Dutson Downs which was originally established in 1985 and operates under an approved EPA licence. The wastes managed at the SORF include: • 26,254 tonnes of liquid waste • 2,700 tonnes of solid waste • 4,097 tonnes of biosolids produced from wastewater treatment activities Agribusiness Gippsland Water operates an agribusiness at a range of broad-acre holdings across the region, the largest being an 8,000ha property at Dutson Downs, of which 3,000ha is currently farmed. Operations on the Dutson Downs site include: • 2,637 cattle • 3,092 sheep • 1,401 cattle sold Staff At 30 June 2008, Gippsland Water employed 238 people in 208 full time equivalent roles, which encompassed a variety of management, technical, professional, and operational streams. CONTENTS Part 1: Introduction and overview 4 Part 2: Resource sustainability 12 Part 3: Customers, stakeholders and community 32 Part 4: Governance 44 Part 5: Organisational sustainability 60 Part 6: Risk management 68 Part 7: Financial performance 70 Part 8: Performance report 110 Part 9: Disclosure index 114 Glossary 115 Index 116 2 GIPPSLAND W ATER | ANNUAL REPORT 2006-072007 - 08 GIPPSLAND WATER OPERATIN G AREA A u s t r alia Lake Victoria LOCH SPORT Lake Reeve Lake Coleman GOLDEN BEACH L egen d Latrobe River catchment boundary Gippsland Water operating area GIPPSLAND W ATER | ANNUAL REPORT 2007-08 3 PART 1 INTRODUCTION AND OVERVIEW OUR MISSION PROFILE OF GIPPSLAND WATER To manage the resources in our care in a manner that ensures The Central Gippsland Region Water Corporation, trading as Gippsland’s sustainability and secures social, environmental and Gippsland Water, was constituted on 21 December 1994 under economic benefi ts to our customers, stakeholders and region. the Water Act 1989. OUR VISION During the reporting period the responsible Ministers were: In an increasingly challenging operating environment, Gippsland • the Honorable John Thwaites, Minister for Water, Environment Water will strive for best practice sustainable water and waste and Climate Change from 1 July 2007 to 29 July 2007; management within central Gippsland. • the Honorable John Brumby, Minister for Water, Environment WHAT WE VALUE and Climate Change from 30 July 2007 to 2 August 2007; and Our strategic and operational decisions must refl ect our attitude • the Honorable Tim Holding, Minister for Water from to the community, our products and service delivery, our business 3 August 2007 to 30 June 2008. and to each other. Gippsland Water provides water and wastewater services Our values guide us as we strive to fulfi ll our mission and vision. to customers in the central Gippsland region of Victoria. Its We value and are committed to: geographic region stretches from Drouin in the west, to Stratford • open, ethical and fair conduct; in the east, and from Mirboo North in the south to Rawson and Briagolong in the north. • community engagement and trust; The region supports a population base of approximately 133,500 • safety as our fi rst priority in going about our business; people and services over 59,000 water customers and over • teamwork; 51,000 wastewater customers. Gippsland Water’s customers also include local major industries, seven of which are of state • employee knowledge and capability; and national signifi cance. • innovative solutions; Gippsland Water is the second largest regional water corporation • sustainability; and in Victoria in terms of revenue earned and is the largest in terms • the highest levels of customer satisfaction. of the total volume of water supplied and wastewater collected. It manages 17 water treatment plants, 14 wastewater treatment plants and two ocean outfalls. Gippsland Water provides prescribed solid and liquid waste recovery services at its Soil and Organic Recycling Facility located at Dutson Downs. Gippsland Water is also responsible for an agribusiness enterprise, producing quality beef, wool, feed crops and plantation timber on land primarily utilised for water and wastewater management. Gippsland Water’s statutory functions of water and sewerage are detailed under Parts 8 and 9 of the Water Act 1989. Additional functions relating to acceptance, treatment and disposal of prescribed industrial waste are detailed in Section 122F Division 5, of the Act. 4 GIPPSLAND W ATER | ANNUAL REPORT 2007-08 GIPPSLAND WATER ’S STRATEGIC PLAN Gippsland Water is a key player in the management of natural resources within the region. We acknowledge that the challenges for organisations and individuals involved in sustainable natural resource management are substantial and increasing in complexity and we recognise that our stakeholders and the wider community expect that we will manage our natural resources in the interests of future generations. Accordingly, stakeholders are seeking greater transparency and accountability in our stewardship of these resources. In meeting these challenges Gippsland Water has recognised that: • a suffi cient supply of high-quality water is a prerequisite for a developing and sustainable region; • deterioration of our rivers, wetlands, estuaries, bays, oceans, lakes and fl oodplains also damages our economy and our society; and • the path towards sustainable water and natural resource management means change. Our challenge is to achieve the necessary change, including the way we supply, use and re-use water, through innovation, leadership and collaboration. The Board of Gippsland Water has led the development of a fi ve-year strategic plan that provides the business with clear direction to deliver on a range of objectives that responds to these challenges and meets the needs of customers, stakeholders and the community. Our strategic plan has a strong focus on: 1. Resource Sustainability: Water is a vital element of our natural environment. It sustains all forms of life. Our slogan ‘Our Water, Our Future’ signals our intention to protect and preserve this most precious resource. 2. Customers, Stakeholders and Community: Gippsland Water’s whole of business approach to customer relations refl ects the changing needs and expectations of our customers and stakeholders. We recognise the need to strengthen our engagement with the community so that together we can fi nd new solutions to the region’s challenges. 3. Governance: The Board and our staff are committed to ensuring/achieving a robust corporate governance regime to enable Gippsland Water to satisfy the requirements of all applicable legislation. 4. Organisational Sustainability: Gippsland Water is committed to ensuring the ongoing sustainability of our organisation through continuing investment in our people, our systems and our physical assets. GIPPSLAND W ATER | ANNUAL REPORT 2007-08 5 PART 1 INTRODUCTION AND OVERVIEW This process commenced in July 2007 with the public release of JOINT MESSAGE FROM THE CHAIRPERSON Gippsland Water’s fi ve-year water plan, which was followed by AND ANAGING IRECTOR the ESC’s draft decision in March 2008 and concluded with the M D ESC’s fi nal determination in mid-June 2008. The review process allowed our customers and stakeholders to make comments and The Board and staff at Gippsland Water are pleased to submissions to the ESC about the proposed water plan. present this year’s annual report to our customers, stakeholders and the community. After completion of the review, the ESC confi rmed residential customer tariffs will increase by 71% over the fi ve-year period We are happy to report Gippsland Water received a bronze (excluding CPI increases). award for its 2006-07 annual report from the Australasian Reporting Awards (ARA). These awards give Australian and The tariff increases and schedule of works contained in the plan New Zealand organisations the chance to benchmark their are a result of signifi cant unprecedented capital investment and annual reports against the ARA’s criteria and also recognise other major operational increases to improve service reliability, excellence in annual reporting. water supply security, and ensure the delivery of water and wastewater services to a population base of over 133,500. A signifi cant and very public event for Gippsland Water this year has been the fi nalisation of our 2008-2013 Water Plan and the Following the 2006 drought, the Victorian water industry has been required to adopt a long-term view to water supply management customer tariffs for the next fi ve year period. This approval came
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