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Demand Management for Regional Utilities

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Demand Management for Regional Utilities WATER DIRECTORATE FORUM COFFS HARBOUR Wednesday 9 May 2012 The Lower Macquarie Water Utilities Alliance Learnings from 2008 to the Present Stewart McLeod Director of Technical Services Dubbo City Council and Chair, NSW Water Directorate 1 LMWUA PRESENTATION OUTLINE 1. Background & Development history 2. Structure& Formalisation 3. Objectives 4. Operation & Management 5. Operating Costs 6. Alliance Statistics 7. Achievements to date 8. Best Practice Compliance 9. Future projects 10. Advantages of our approach 2 LMWUA 1. BACKGROUND & DEVELOPMENT HISTORY • Six Councils in the Lower Macquarie Valley came together in early 2008 & agreed to be proactive by developing an Alliance Model – to address the requirements of the Water Inquiry which commenced in late 2007 • Councils involved initially: - Bogan Shire - Cobar Shire - Dubbo City - Narromine Shire - Warren Shire - Wellington Shire • Bourke & Brewarrina subsequently joined in May 2009 3 4 LMWUA • The Alliance covers 18% of the LAND AREA of New South Wales, but • Serves only 3.4% of the WATER CONNECTIONS in non-metropolitan New South Wales 5 LMWUA 2. STRUCTURE & FORMALISATION • Deed of Agreement signed by 6 original Councils on 1 July 2008. A new, more binding, Deed of Agreement has been developed but not executed; pending a decision on the Water Inquiry by State Government • Deed covers: - Vision Statement - Objectives - Work plan (4 Year reviewable) - Term of Agreement – 4 years renewable 6 LMWUA - Structure of Alliance - Access to Property, Data & Records - Intellectual Property - Reporting - Fees & Charges - Termination 7 LMWUA 3. Objectives Overall objective of the Alliance is mutual co- operation - to address short term deficiencies and impediments to achieving “Best Practice” – and to demonstrate long term sustainability. 8 LMWUA SPECIFIC OBJECTIVES are to undertake: a) Resource and staff skill sharing; b) Water resource sharing opportunities c) Peer review of performance and mentoring where appropriate; d) Development of shared best practice; e) Funding of best practice strategies and goals 9 LMWUA 4. OPERATION & MANAGEMENT - Operating under Section 355(d) of the Local Government Act, 1993 - Retention of autonomy of each member Council - Headed by a Management Board which meets bi-annually. - Operational matters dealt with by a Technical Committee which meets bi-monthly and a paid PROJECT OFFICER (Consultant). 10 LMWUA • SPECIAL INTEREST GROUPS Three “Special Interest” Groups (Sub- Committees) formed to further the knowledge sharing and problem solving objectives of the Alliance - A Compliance and Statutory Reporting Group, whose primary function is to work together in developing annual Performance Reports and EPA Licensing Reports - A Works Officers & Supervisors Group, whose functions are to mentor each other, improve operating procedures, implement ADWG Drinking Water Framework (in accordance with the Alliance’s Water Quality Management Plan) & share resources and materials, where possible & appropriate. - A Web Site Development Group Administered by the IT Officer at Narromine Shire Council. The web site is located at www.lmwua.nsw.gov.au 11 LMWUA • Voting Rights - Board has two representatives from each Council (1 Councillor, 1 Senior Staff member) - Equal representation irrespective of Council size. 12 LMWUA 5. OPERATING COSTS - Cost of joint projects is levied on a per connection basis. - Cost of projects for the benefit of one member only is the responsibility of that Council only, but the Alliance will usually bear the cost of preparing a Brief, calling quotes, and assessing quotes received to recommend a successful consultant. - Total operating costs (excluding Projects & special consultancies – which have, to date, been largely financed by Grant funds, are in the order of $90,000 pa (less than 1 senior staff FTE) 13 LMWUA 6. ALLIANCE STATISTICS Size Council W/S Connected Total W & Sge % age Compliance with BPM Criteria Rank Properties 10/11 Revenue (Excl Cap (10/11 Perf. Report) Wks Grants (10/11) Number %age $ Mill % age W/S Sge Comb.W/Sge 1 Dubbo 16,690 60.1 23 62.7 100 100 100 (08/09:100%) 2 Wellington 2,900 10.5 3.8 10.4 100 100 100 (08/09:100%) 3 Cobar 2,260 8.1 1.9 5.2 90 78 84 (08/09:58%) 4 Narromine 2,130 7.7 2.2 6 100 100 100 (08/09:79%) 5 Bourke 1,280 4.6 2 5.4 100 78 89.5 (08/09:46%) 6 Bogan 1,030 3.7 1.4 3.8 100 100 100 (08/09:52%) 7 Warren 960 3.5 1 2.7 100 78 89.5 (08/09:62%) 8 Brewarrina 490 1.8 1.4 3.8 60 57.9 37 (08/09 ;25%) Totals/ Averages For Alliance 27,740 100 36.7 100 93.8 86.1 90 (08/09:65%) Source: “2010/11 NSW Water Supply and Sewerage Benchmarking Report” (NSW Office of Water) 14 LMWUA 7. ACHIEVEMENTS TO DATE • Achievement of 90% overall compliance with Best Practice requirements (from a base of 73% in 2008) • Successful applications for grants totalling $451,800 from DEWHA, under the strengthening Basin Communities Program; to develop regional strategies • Completion of the following Regional Strategic Plans: – IWCM (Evaluation Study) – Demand Management Plan – Drought Management Plan – Drinking Water Quality Management Plan – Stormwater Harvesting Strategy • Collaborative completion of annual Performance Reports • Formation of three working Groups 15 LMWUA • Submissions on water reforms to: – Infrastructure Australia – The Productivity Commission – The National Water Commission • Completed development of a Regional Resource Sharing, Mentoring and Training program (in June 2011), including a Link Document to establish connectivity and resource sharing opportunities with Centroc WUA. • Developed Alliance Policies covering: - Disinfection of potable water supplies - Fluoridation - Asset Management - Pricing • Completed audits of all Alliance member Water Treatment and Sewage Treatment Plants (HWA) 16 LMWUA • Projects to date have been largely funded by Grants The 6 Best Practice Regional Projects cost a total of $529,500 • The cost to LMWUA was $72,500 (rest was Commonwealth Grant). • The overall savings from doing Regional Plans/Strategies were $280,000 (or average of $35,000 per Council) based on estimated consultancy costs of each Council doing independent Plans/Strategies 17 LMWUA Progress with the Joint (LMWUA/CWUA) Resource Sharing, Training & Mentoring With Centroc we have agreed to: • to share all Policy Documents • to consider “do and charge”/ free support from the Alliance to members in need of water and sewer engineering support • form a subcommittee that has carriage of this project • “growing our own” will be a focus where this could include • Tailoring “our training needs”; for example for Water Treatment Operators • Support for trainees in the region • Sponsored scholarships for engineering students including regional work experience rotations 18 LMWUA Joint (LMWUA/CWUA) Resource Sharing, Training & Mentoring (cont’d) Other potential opportunities: • developing a joint Water sampling Policy • procuring joint Asset Valuations (again, buying power of up to 24 LWUs) • developing joint SBPs (as part of IPR) 19 LMWUA 8. BEST PRACTICE COMPLIANCE - Identification of gaps in compliance by member Councils with Best Practice management and documentation completed - Over the last three years, compliance with NSW best practice management requirements, across the Alliance’s 8 Councils, has improved from 66% overall compliance in 2007/08 to 90% compliance in 2010/11 (an improvement of 36.4%). - It is anticipated that 100% compliance will be achieved in 2012/13 20 LMWUA Historic Best Practice Performance Summary Year Water Supply Sewerage Overall 2005/06 65% 51% 59% 2006/07 69% 55% 63% 2007/08 73% 57% 66% 2008/09 86% 72% 80% 2009/10 90% 75% 83% 2010/11 94% 86% 90% 21 LMWUA 100% 90% 80% 70% 60% 50% 40% 30% Water Supply 20% Sew erage 10% Overall 0% 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 22 LMWUA 23 LMWUA Regional Water Quality Management Plan 24 LMWUA 9. FUTURE PROJECTS • Develop a Regional Strategic Business Plan • Develop a Regional Asset Management Plan • Develop a Regional Quality Management Plan • Develop a Regional Environmental Management Plan • Develop a Regional Pricing Policy • Develop a Regional Business Continuity Plan 25 LMWUA 10. ADVANTAGES OF OUR APPROACH • Opportunity to pool resources, reduce duplication and form a common platform to develop initiatives • Staff development • Knowledge & resource sharing • Catchment based approach • Uniformity of approach to resource management • Cost effective delivery of Best Practice 26 LMWUA • Maintenance of community ownership & involvement • Co-operation instead of coercion – members WANT to be involved, they are NOT FORCED to belong • Regional integration, in the true sense of the word 27 LMWUA Thank You 28.
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