Agenda of Water, Waste and Sewer Advisory Committee Meeting

Notice of Meeting

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Water, Waste and Sewer Advisory Committee Meeting

A Water, Waste and Sewer Advisory Committee Meeting of Byron Shire Council will be held as follows:

Venue	Meeting Room 2, Station Street, Mullumbimby
Date	Thursday, 2 March 2017
Time	11.30am

Phil Warner

Acting Director Infrastructure Services I2017/247

Distributed 23/02/17

CONFLICT OF INTERESTS

What is a “Conflict of Interests” - A conflict of interests can be of two types:

Pecuniary - an interest that a person has in a matter because of a reasonable likelihood or expectation of appreciable financial gain or loss to the person or another person with whom the person is associated.

Non-pecuniary – a private or personal interest that a Council official has that does not amount to a pecuniary interest as defined in the Local Government Act (eg. A friendship, membership of an association, society or trade union or involvement or interest in an activity and may include an interest of a financial nature).

Remoteness – a person does not have a pecuniary interest in a matter if the interest is so remote or insignificant that it could not reasonably be regarded as likely to influence any decision the person might make in relation to a matter or if the interest is of a kind specified in Section 448 of the Local Government Act.

Who has a Pecuniary Interest? - a person has a pecuniary interest in a matter if the pecuniary interest is the interest of the person, or another person with whom the person is associated (see below).

Relatives, Partners - a person is taken to have a pecuniary interest in a matter if:

§ The person’s spouse or de facto partner or a relative of the person has a pecuniary interest in the matter, or

§ The person, or a nominee, partners or employer of the person, is a member of a company or other body that has a pecuniary interest in the matter.

N.B. “Relative”, in relation to a person means any of the following:

(a) the parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descends or adopted child of the person or of the person’s spouse;

(b) the spouse or de facto partners of the person or of a person referred to in paragraph (a)

No Interest in the Matter - however, a person is not taken to have a pecuniary interest in a matter:

§ If the person is unaware of the relevant pecuniary interest of the spouse, de facto partner, relative or company or other body, or

§ Just because the person is a member of, or is employed by, the Council.

§ Just because the person is a member of, or a delegate of the Council to, a company or other body that has a pecuniary interest in the matter provided that the person has no beneficial interest in any shares of the company or body.

Disclosure and participation in meetings

§ A Councillor or a member of a Council Committee who has a pecuniary interest in any matter with which the Council is concerned and who is present at a meeting of the Council or Committee at which the matter is being considered must disclose the nature of the interest to the meeting as soon as practicable.

§ The Councillor or member must not be present at, or in sight of, the meeting of the Council or Committee:

(a) at any time during which the matter is being considered or discussed by the Council or Committee, or

(b) at any time during which the Council or Committee is voting on any question in relation to the matter.

No Knowledge - a person does not breach this Clause if the person did not know and could not reasonably be expected to have known that the matter under consideration at the meeting was a matter in which he or she had a pecuniary interest.

Participation in Meetings Despite Pecuniary Interest (S 452 Act)

A Councillor is not prevented from taking part in the consideration or discussion of, or from voting on, any of the matters/questions detailed in Section 452 of the Local Government Act.

Non-pecuniary Interests - Must be disclosed in meetings.

There are a broad range of options available for managing conflicts & the option chosen will depend on an assessment of the circumstances of the matter, the nature of the interest and the significance of the issue being dealt with. Non-pecuniary conflicts of interests must be dealt with in at least one of the following ways:

§ It may be appropriate that no action be taken where the potential for conflict is minimal. However, Councillors should consider providing an explanation of why they consider a conflict does not exist.

§ Limit involvement if practical (eg. Participate in discussion but not in decision making or vice-versa). Care needs to be taken when exercising this option.

§ Remove the source of the conflict (eg. Relinquishing or divesting the personal interest that creates the conflict)

§ Have no involvement by absenting yourself from and not taking part in any debate or voting on the issue as if the provisions in S451 of the Local Government Act apply (particularly if you have a significant non-pecuniary interest)

RECORDING OF VOTING ON PLANNING MATTERS

Clause 375A of the Local Government Act 1993 – Recording of voting on planning matters

(1) In this section, planning decision means a decision made in the exercise of a function of a council under the Environmental Planning and Assessment Act 1979:

(a) including a decision relating to a development application, an environmental planning instrument, a development control plan or a development contribution plan under that Act, but

(b) not including the making of an order under Division 2A of Part 6 of that Act.

(2) The general manager is required to keep a register containing, for each planning decision made at a meeting of the council or a council committee, the names of the councillors who supported the decision and the names of any councillors who opposed (or are taken to have opposed) the decision.

(3) For the purpose of maintaining the register, a division is required to be called whenever a motion for a planning decision is put at a meeting of the council or a council committee.

(4) Each decision recorded in the register is to be described in the register or identified in a manner that enables the description to be obtained from another publicly available document, and is to include the information required by the regulations.

(5) This section extends to a meeting that is closed to the public.

Staff Reports - Infrastructure Services

Report No. 4.1 Resource Recovery Current State of Play

Directorate: Infrastructure Services

Report Author: Lloyd Isaacson, Team Leader Resource Recovery and Quarry

File No: I2016/1256

Theme: Community Infrastructure

Waste and Recycling Services

Summary:

A presentation to advise the Committee of current and recent Resource Recovery projects will be presented to the Committee.

RECOMMENDATION:

That the Water, Sewer and Waste Advisory Committee note the presentation on current and recent Resource Recovery projects.

Attachments:

1 WWSAC December 2016 meeting_ Resource Recovery Branch – Current State of Play PDF, E2016/102564 , page 6⇩

Report

A presentation to advise the Committee of current and recent Resource Recovery projects will be presented to the Committee.

Financial Implications

N/A

Statutory and Policy Compliance Implications

N/A

Report No. 4.2 Ocean Shores to Brunswick Valley STP Transfer Feasibility Study

Directorate: Infrastructure Services

Report Author: Peter Rees, Manager Utilities

File No: I2017/244

Theme: Community Infrastructure

Sewerage Services

Summary:

The existing Ocean Shores STP (OSSTP) was originally built in the 1980s, with the last significant upgrade being in ca. 1995. The capacity of the existing IDEA process has been assessed at around 1.1 ML/d average dry weather flow (ADWF). The current ADWF treated at OSSTP is in the order of 1.3 ML/d, meaning that it is potentially operating slightly over its assessed capacity.

Council commissioned GHD (2014-15) to undertake a planning study to investigate the augmentation requirements for OSSTP. The planning study found that the plant could be upgraded at a cost in the vicinity of $30 Million.

The purpose of this Study was to examine the feasibility of transferring raw wastewater from the Ocean Shores catchment to the Brunswick Valley Sewage Treatment Plant (BVSTP). The ultimate objective of this strategy is to consolidate the treatment of wastewater at BVSTP from the combined catchments of Mullumbimby, Brunswick Heads and Ocean Shores and avoid the required short term upgrade of OSSTP.

The study concluded the Ocean Shores – BVSTP transfer strategy has the potential to reduce the whole of life NPV of the required Ocean Shores STP upgrade project by approximately $12.6 million as well as allowing the construction of the originally proposed wetlands and effluent storage ponds for the Brunswick Valley Sewage Augmentation scheme.

Council engaged MWH to provide an independent Peer review to provide a professional opinion, based on the information provided in the GHD Feasibility Study. The peer review found the study is sound and provides a valid justification that Council should proceed with a planned closure of the OSSTP, transfer the flows to the BVSTP and upgrade BVSTP as required.

RECOMMENDATION:

That the Committee note the report.

Attachments:

1 GHD Finalised Report - Ocean Shores to Brunswick Valley STP Transfer
Feasibility Study Nov 2016, E2016/102321 , page 23 ⇩

2 Finalised Peer Review Report of Ocean Shores to Brunswick Valley STP Transfer Feasibility GHD Report (MWH, Feb 2017), E2017/9096 , page 220⇩

Report

Further to the GHD (2014-15) planning study, Council indicated the need to investigate other alternatives to the augmentation of capacity at OSSTP. Some of the underlying drivers included:

· The significant capital cost of around $30 M for OSSTP upgrade

· Population growth projections

· The Brunswick Valley STP (BVSTP) being located relatively nearby to the OSSTP (less than approximately 3 km) and is the newer of the two plants, having been built in 2009-10.

· Anticipated economies (in both capital and operating costs) can be achieved by consolidating treatment at BVSTP and potentially ceasing (or minimising) operations at OSSTP

· Previous work by Council identified an easement for a pipeline from OSSTP to BVSTP to transfer treated effluent, for water recycling purposes (Council Resolution 06-759) of which only one section of easement remains to be acquired at this point in time.

All of the options proposed for the Ocean Shores- BVSTP transfer offer lower whole-of-life (NPV) costs than the alternative strategy of retaining both STPs and upgrading OSSTP as per a previous planning study for that the Ocean Shores plant.

If the Ocean Shores-BVSTP transfer strategy is be implemented, the biggest opportunity to reduce capital costs (indicatively within the next 20 years) and reduce whole-of-life cost (NPV) comes from deferring the BVSTP capacity augmentation for major process components until no later than 2035-36 (i.e. Option 4 identified in this Study). This Option 4 has the potential to defer up to $22.7 Million in capital (until 2035-36) and reduce NPV by approximately $12.6 Million.

The Peer Review (attached) concluded that the majority of assumptions, approaches, outcomes and conclusions of the GHD Feasibility Study are justified. Whilst some minor discrepancies between the capital cost estimates for BVSTP and OSSTP are noted in the Peer Review, if addressed these will not change the GHD Feasibility Study recommendations.

The Peer Review agrees that the BVSTP upgrade approach is quite conservative, and therefore there is significant potential to defer capital spend at BVSTP and/or optimise the upgrade approach.

Financial Implications

The financial implications of the proposed project are the potential to defer up to $22.7 million in capital expenditure and reduce the Net Present Value of the project by approximately $12.6 million.

Statutory and Policy Compliance Implications

Compliance with EPA licences 784 (Ocean Shores Sewage Treatment system) and 13266 (Brunswick Valley Sewage Treatment System).

Report No. 4.3 Water and Sewer Strategic Business Plan Workshop

Directorate: Infrastructure Services

Report Author: Peter Rees, Manager Utilities

File No: I2017/246

Theme: Community Infrastructure

Sewerage Services

Summary:

At the Water Waste and Sewer Advisory Committee meeting on 1 December 2016 the committee recommended

That in relation to the Strategic Business Plan Water Supply and Sewerage Council notes:

a. that the Water, Waste and Sewer Committee was provided with an overview of the Plan

b. that the Committee will workshop the Strategic Business Plan Water Supply and Sewerage early in 2017

c. that the Plan will be presented to a Councillor Strategic Planning Workshop prior to the Committee workshopping it

The attached powerpoint presentation was shown to the Councillors at the Strategic Planning Workshop held on the 9 February 2017. The presentation is intended to provide an overview of the water and sewerage businesses and the associated Strategic Business Plan.

RECOMMENDATION:

That Council notes the Water, Waste and Sewer Committee were provided with a Water and Sewer Strategic Business Plan presentation.

Attachments:

1 Presentation Water and Sewer Strategic Business Plan, E2017/13319 , page 232 ⇩

Report

Councils that have responsibility for water supply and sewerage infrastructure need to comply with the requirements and timeframes of the NSW Government’s Best-Practice Management of Water Supply and Sewerage Guidelines, 2007. These requirements include:

· Preparing and implementing a 30 year Integrated Water Cycle Management (IWCM) Strategy

· Preparing and implementing a 20-30 year Strategic Business Plan, Financial Plan and associated asset management plans

· Annual Performance Monitoring, including preparing an annual Action Plan to review the council’s performance and to identify and address any areas of under-performance. The review also includes whether the current Typical Residential Bill is in accordance with the projection in the Strategic Business Plan and any proposed corrective action.

The Strategic Business Plan (SBP) addresses 3 elements of the Best-Practice Management of Water Supply and Sewerage Framework [Strategic Business Planning, Pricing and Drought Management].

Demonstrated best-practice management is a pre-requisite for payment of a dividend from the surplus of a local government LWU’s water supply and sewerage businesses.

Some key assumptions in the plan are:

· Byron Bay Sewage Treatment Plant upgrade to 10 ML/day average dry weather flow to commence in 2025.

· Ocean Shores Sewage Treatment Plant to be upgraded by transferring flows to Brunswick Valley Sewage Treatment Plant. This work to commence in 2020.

· The Brunswick Valley Plant be upgraded to accommodate the increased flows. The work to include wetlands and a storm overflow pond.

· The Total Residential Bill for Water Supply be reduced by 1.6% in 2017-18.

· The Total Residential Bill for Sewerage be reduced by 9% in 2017-18.

Financial Implications

Financial sustainability of the water supply and sewerage businesses is verified by the strategic business plan.

There is an opportunity to reduce the Total Residential Bills for both water supply and sewerage.

Statutory and Policy Compliance Implications

Compliance with the NSW Government’s Best-Practice Management of Water Supply and Sewerage Guidelines, 2007.