CENTRAL TABLELANDS Water

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CENTRAL TABLELANDS W a t e r

Business Paper

Ordinary Meeting of Central Tablelands Water

13th June 2012

Molong

Phone: 02 6368 2208 Fax: 02 6368 2451 Email: [email protected] Web: www.ctw.gov.au30 Church Street P.O. Box 61 BLAYNEY NSW 2799

Central Tablelands County Council T/A Central Tablelands Water ABN: 43 721 523 632

7 June 2012

Notice to Members Your attendance is requested at an Ordinary Meeting of Council to be held at the Cabonne Shire Council on Wednesday, 13 June 2012 at 10.30am. Morning tea will be served at 10.00am.

Agenda 1. Public Forum

2. Apologies for non-attendance

3. Leaves of absence granted

4. Confirmation of Minutes - Ordinary Meeting held on 11th April 2012

5. Chairman’s Minute

6. Councillor Representation

7. Notices of Motion

8. Reports of Staff

9. Adjourn Meeting and proceed into Committee of the Whole

10. Resume Ordinary Meeting & Report of Committee of the Whole

11. Next Meeting – Grenfell – 8th August 2012

Yours faithfully

A. Perry General Manager

Ordinary Meeting – 13 June 2012 Page No 1

This is Page No. 1 of the Agenda presented to the Ordinary Meeting of Central Tablelands County Council held at Cabonne Shire Council on 13 June 2012

INDEX OF REPORTS OF THE ORDINARY MEETING OF CENTRAL TABLELANDS WATER

HELD ON WEDNESDAY 13 JUNE 2012

CORPORATE & FINANCIAL SERVICES REPORTS

01 Integrated Planning & Reporting (IP&R) (391) ....................................... 3 02 Budget Review Statement - 31st March 2012 (15) ................................ 6 03 Financial Matters (4) ............................................................................ 15 04 Local Government Remuneration Tribunal (248) ................................. 18 05 Flood Damage to Trunk Mains (395) ................................................... 21 06 Flood Damage Repairs - Emergency Repairs (395) ............................ 30 07 Lake Rowlands - Safety Upgrade Review (94) .................................... 32 08 2010/2011 NSW Water Supply Performance Monitoring Report (217) 34 09 Forests NSW - Corporisation by NSW Government (217) ................... 47 10 National Broadband Network - Site Access Eugowra (124) ................. 52 11 Cabonne Council - Subdivision Development, Manildra (324) ............. 55 12 LGSA 2012 Water Management Conference (9) ................................. 60 13 WBC Alliance - Executive Officer's Report (356) ................................. 61

ENGINEERING & OPERATIONS SERVICES REPORTS

14 Purchase of Plant (87) ......................................................................... 65 15 Maintenance of Council's Systems (105) ............................................. 66 16 Performance of Council's Systems (105) ............................................. 68 17 New Water Services (80) ..................................................................... 70

COMMITTEE REPORTS

18 Water Leakage Account 9057-00000-3 (297) Water Leakage Account 1744-00000-9 (283) ..................................... 71

19 Questions on Notice ............................................................................ 72 20 Proceed to Committee of the Whole .................................................... 73 21 Report of the Committee of the Whole ................................................. 74



01) Integrated Planning & Reporting (IP&R) (391) (Tony Perry)

RECOMMENDATION: 1. That, in accordance with Sections 402-406 of the Local Government Act 1993,

and, following the statutory period of 28 days public display, Council now resolve to adopt the following draft Plans:

a. Delivery Plan 2012–2016 b. Operational Plan 2012–2013 – Part 1 & 2 c. Workforce Management Plan 2012–2016 d. Asset Management Strategy and Plans e. Long Term Financial Plan

REPORT In accordance with the requirements of Section 405 of the Local Government Act, the Draft Operational Plan 2012-2013, Part 1 & 2, together with the Delivery Plan 2012 – 2016, the Workforce Management Plan 2012–2016, the Asset Management Strategy and Plans and the Long Term Financial Plan was placed on public exhibition for a statutory 28-day minimum period. Advertisements were placed in all local and regional newspapers advising that the draft Management Plan was on public exhibition at Council’s office in Blayney and on Council’s website. The advertisements invited members of the public to review the draft Plans and to make written submissions prior to 5 pm on 14 May 2012. As at 5pm on 14 May 2012, Council had received no submissions. If there are no submissions received prior to this meeting, Council can proceed to adopt the Draft Operational Plan 2012-2013, Part 1 & 2, the Delivery Plan 2012 – 2016, the Workforce Management Plan 2012–2016, the Asset Management Strategy and Plans and the Long Term Financial Plan and give approval to the estimates of expenditure and income for the ensuing 12 months.

The draft Operational Plan 2012-2013 provides for an increase in the annual availability charge for a standard 20mm service from $160.00 per year to $200.00 per year, with larger services increasing respectively. Consumption charges are planned to increase by 8% from $1.84 to $1.99, with residential and rural consumers being subject to a 50% increase in the usage charge for consumption in excess of 450 kL per annum. The Section 64 Developer Charge for 2012/2013 has increased to $8,732.00 per ET, whilst the capital contribution charge on existing vacant unconnected land (in-fill blocks) for 2012/2013 has increased to $3,776.00 per ET. The Estimates of Income and Expenditure for 2012/2013, as presented in the draft Operational Plan, are summarised as follows:



Operating Revenue

Availability Charges 1,201,489 Water Sales 2,694,609 User Charges 96,640 Interest 116,800 Other Revenues 300,857 Grants & Subsidies 54,084 Contributions 36,713 Net Gains on Disposal of Assets 26,000 4,527,192

Less: Operating Expenses

Management Expenses 945,656 Supervision & Technical Expenses 220,784 Operational Expenses 1,897,957 Interest 265,640 Depreciation - System Assets 1,608,091 Depreciation - Plant & equipment 187,463 5,125,591 Estimated Operating Result for Period Surplus/(Deficit) (598,399)

Add Expenses not Involving Flow of Funds

Depreciation 1,795,554 1,197,155

Add Non-Operating Revenue

Written-down value of Assets Sold 322,000Grants, Subsidies and Contributions – Capital 138,061Transfer from Reserves 2,532,005 2,992,066

Less Non-Operating Expenditure

Acquisition of Assets 2,880,005 Repayment of Loans 315,017Transfer to Reserves 994,199

Budget Result (Balanced) 0



BUDGET IMPLICATIONS Nil POLICY IMPLICATIONS Nil ATTACHMENTS Nil



02) Budget Review Statement - 31st March 2012 (15) (Gavin Rhodes)

RECOMMENDATION: 1. That the budget review statement for the quarter ended 31st March 2012 be

accepted, and the variations therein be adopted. REPORT The Budget Review Statement (BRS) to 31st March 2012 is presented to Council with a revised estimated deficit of $239,910.00 for the year. This estimated deficit for 2011/2012 represents a further decline from the original budget deficit of $46,509.00. The variances against the December 2011 budget review can be best summarised as follows: Increased Income: Availability Charges (net) $ 1,169 Water Sales – Quandialla $ 5,225 Water Sales – Other $ 6,000 User Charges (net) $ 24,500 Interest – Overdue Accounts $ 1,000 $ 37,894 Reduced Income: Water Sales – Urban & Rural $ 68,359 Water Sales – Cowra Shire $ 20,000 Other Revenues (net) $ 40,196 Grants & Subsidies – Pensioner Rebates $ 2,436 ($130,991) Increased Expenditure: Management Expenses (net) $ 24,425 Lake Rowlands Dam Safety Review $ 2,260 ($ 26,685) Reduced Expenditure: Technical & Supervision Expenses (net) $ 3,000 Operational Expenses – (net) $ 62,313 Mains Extensions – Berrys Rd Grenfell $ 1,163 Transfer to Plant Reserve $ 19,196 $ 85,672

Net Variance to December 2011 Budget Review ($ 34,110) ========

The revised budget forecast deficit is directly attributed to further decreases in water sales over the past 3 months due to continual above average rainfall in the region. It is estimated that there will be a further reduction in consumption by urban and rural customers of approximately 37,152 kilolitres. This equates to an estimated revenue shortfall of $68,359 for the final quarter. There is also an estimated reduction in bulk



water sales to Cowra Shire Council of 18,000 kilolitres, resulting in a further loss of income of approximately $20,000. There is an estimated increase in water sales for Quandialla of $5,225 and water sales ‘Other’ of $6,000 due to an increase in standpipe sales at Blayney and Grenfell for the year. Installations and Private Works revenue is anticipated to increase by $25,000 due to increased installations in the areas of Blayney, Millthorpe, Grenfell and Eugowra; however, this will be offset by an increase in Installations and Private Works expenditure. Management expenses have increased, mainly due to the provision of consultancy services to meet DLG Integrating Planning and Reporting requirements ($5,446); and original budget underestimations for superannuation contributions ($3,612), WBC Alliance ($7,500), meter reading ($4,500) and travelling expenses ($6,500). These increased expenses have been slightly offset by estimated expenditure reductions in printing and stationery ($4,800) and internal audits ($2,000). Technical and Supervision Expenses are estimated to have a net decrease of $3,000 in expenditure for the remainder of the financial year. This is a result of depot expenses increasing by $4,000 and two (2) bottle filling stations totalling $7,000 being deferred to next financial year. It is estimated that operational expenditure for reservoirs maintenance will require additional funding of $3,000 until the end of the financial year. This will be offset by an estimated reduction of expenditure in mains maintenance of $50,000 an overestimation of $8,000 in the original budget for the provision of consultancy services for the Drought Management Plan and $12,500 for the Lake Rowlands Project where consultant Rob Parker provided his services on a pro-bono basis. As reported by the General Manager at the April 2012 Council Meeting, Council suffered severe damage to its trunk mains in six locations on 1 March 2012. The estimated cost of undertaking permanent restoration works to these damaged trunk mains is $500,000. Therefore, as Council is currently ineligible for Natural Disaster Funding, $200,000 for flood restoration works has been included in this BRS to be funded from the Renewals Reserve and $300,000 included in 2012/2013 budget also to be funded from the Renewals Reserves. The IT System Upgrade Project will not be completed this financial year with the balance of funds transferred to next financial year (2012/13). The South Canowindra Mains Replacement Project and the PAC System have both come in under budget with remaining funding returning to the Renewals Reserve.

Report by Responsible Accounting Officer

The following statement is made in accordance with Clause 203(2) of the Local Government (General) Regulations 2005: It is my opinion that the Quarterly Budget Review Statement for Central Tablelands Water for the quarter ended 31 March 2012 indicates that Council’s projected financial position at 30 June 2012 will be satisfactory at year end, having regard to the projected estimates of income and expenditure and the original budgeted income and expenditure.



Gavin Rhodes Responsible Accounting Officer BUDGET IMPLICATIONS Nil POLICY IMPLICATIONS Nil ATTACHMENTS 1 Budget Review Statement to 31st March 2012 6 Pages

ATTACHMENT NO: 1 - BUDGET REVIEW STATEMENT TO 31ST MARCH 2012

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03) Financial Matters (4) (Gavin Rhodes)

RECOMMENDATION: 1. That the information be noted. REPORT Details of all payments made to creditors in the preceding two months are available for inspection at the Blayney office. The Bank Reconciliation, as at 31st May 2012, together with a Statement of Funds Invested, is attached to the business paper. Council’s Petty Cash Book and the Warrant Listing will be tabled on meeting day. As required by Council, the following table details the status of Council’s investments through Lehman Bros at 30th April 2012:

Investment Interest Rate

Above BBSW Call Date Maturity

Date Interest

Paid Face Value

Current % value

Current Value

Aphex (Glenelg AA-) 6.1400% 2.09% 22/06/2009 22/12/2014 Quarterly 50,000 19.07 9,535

MAS (Parkes AA-) 0.0306% -4.02% 20/12/2009 20/06/2015 Quarterly 300,000 0.01 30

ZIRCON (Coolangatta AA) N/A N/A 20/03/2011 20/09/2014 Quarterly 250,000 98.00 245,000

ZIRCON (Miami AA) N/A N/A 20/03/2015 20/03/2017 Quarterly 50,000 100.00 50,000

Omega (Henley AAA) 5.6733% 1.62% 22/06/2012 22/06/2012 Quarterly 200,000 95.00 190,000

Total $850,000 58.18 $494,565

The value of the CDO investments acquired through Lehman’s have increased with the latest valuations received as at 30 April 2012, showing an increase in the total net valuations from $491,020 at 29 February 2012 to $494,565 at 30 April 2012, an increase of $3,545. Valuations are now valued at 58.18% of par value. The class action by a significant number of councils against Lehman Australia has not yet been resolved. However, whilst it is a long drawn out affair, Council’s legal representatives, Piper Alderman, together with litigation funders IMF (Australia) Ltd, are confident of a successful outcome and the best possible return from the investments is received. Whilst Council’s CDO investments are currently well below par value, Council’s remaining investment portfolio of approximately $2.81 million is all capital guaranteed, primarily in term deposits. BUDGET IMPLICATIONS Nil POLICY IMPLICATIONS Nil



ATTACHMENTS 1 Bank Reconcilitation to 31st May 2012 1 Page

ATTACHMENT NO: 1 - BANK RECONCILITATION TO 31ST MAY 2012 ITEM NO: 03




04) Local Government Remuneration Tribunal (248) (Tony Perry)

RECOMMENDATION: 1. That Council endorse its policy of paying the maximum fees to the Chairman and

Members of Central Tablelands County Council, as determined by the Local Government Remuneration Tribunal for Category County Council – Water

REPORT Council has received advice that the Local Government Remuneration Tribunal has delivered its determination in regards to fees payable to councillors and mayors/chairpersons for 2012-2013, increasing fees by 2.5 per cent from 1 July 2012. The determination reads, in part: Accordingly, subject to any successful challenge to the validity of the legislation amending the LG Act , and so far as the Tribunal is aware no such challenge has been lodged, the Tribunal when making a determination must now apply the same public sector wages cap that binds the Industrial Relations Commission. Increases beyond 2.5 per cent per annum can be awarded by the Industrial Relations Commission but subject to the requirement that: “…sufficient employee-related cost savings have been achieved to fully offset the increased employee-related costs.” However no increase beyond 2.5 per cent may be applied by the Tribunal to the minimum and maximum amounts of fees to be paid to Councillors and Mayors, because although section 242A (1) of the LG Act requires the Tribunal to apply the same policies as those of the Industrial Relations Commission, section 242A (2) of the LG Act expressly provides: (2) The policies referred to in subsection (1) do not include any policy that provides for increases in remuneration based on employee-related savings. This intent was confirmed by the Hon. Greg Pearce (Minister for Finance and Services, and Minister for the Illawarra) in the Minister’s Second reading speech: Legislative Council, Parliamentary Debates (Hansard), 22 June 2011 at p. 3101 on the amendments to the Act where he stated; “This bill will extend the Government's public sector wages policy to elected officials, State parliamentarians and local mayors and councillors, senior executives in the public service and statutory office holders. The Government's public sector wages policy is about delivering fair wage increases to hardworking public servants. It is also about ensuring that the State budget can be brought under control. This legislation means that we can get on with the business of delivering the infrastructure and services which this State needs and which its people deserve. Last week this Parliament passed the Industrial Relations Amendment (Public Sector Conditions of Employment) Bill 2011. That legislation requires the Industrial Relations Commission to give effect to the Government's wages policy when making decisions relating to public sector salaries. The reasons that bill was necessary are the very same reasons that it is now appropriate to extend the policy to other office holders who are



paid from the public purse. If the policy is good enough for public servants it is certainly also good enough for senior executives and for elected officials. That is why, for the first time, the Government's wages policy will be formally extended to apply to elected officials and senior bureaucrats. ..Schedule 2 to the bill applies the same policy to elected officials at the local government level, to mayors and councillors. It provides that in future the Local Government Remuneration Tribunal will be required to give effect to the Government wages cap when setting the range of fees for mayors and councillors.” The intent of Parliament is clear. The 2.5 per cent cap on increases is to apply to the minimum and maximum fees that apply to Councillors and Mayors. The effect of the amendments to the LG Act is to remove the Tribunal’s discretion to determine any increase in the minimum and maximum fees beyond 2.5 per cent. A full copy of the Tribunal’s 2011 Annual Review will be tabled at this Council meeting for Councillors information. The following table lists the Tribunal’s determinations for 2012-2013:

Councillor/Member Annual Fee

Mayor/Chairperson Additional Fee*

Minimum Maximum Minimum Maximum

Principal City 23,250 34,100 142,250 187,180

Major City 15,490 25,580 32,940 74,530

Metropolitan Major 15,490 25,580 32,940 74,530

Metropolitan Centre 11,640 21,700 24,700 57,660

Metropolitan 7,740 17,060 16,480 37,230

Regional Rural 7,740 17,060 16,480 37,230

Rural 7,740 10,220 8,220 22,310

County Council – Water 1,540 8,530 3,300 14,000

County Council – Other 1,500 5,100 3,300 9,310

Council’s policy is to pay the maximum fees as determined by the Local Government Remuneration Tribunal. BUDGET IMPLICATIONS Nil POLICY IMPLICATIONS Nil



ATTACHMENTS Nil



05) Flood Damage to Trunk Mains (395) (Tony Perry)

RECOMMENDATION: 1. That the General Manager write to the Premier, Treasurer, Minister for Primary

Industries and local members of parliament expressing Council’s disappointment and dissatisfaction with the decision to rule Council ineligible for Natural Disaster Funding due to the classification of local water utilities as trading undertakings.

REPORT Following the General Manager’s report to the April 2012 Council meeting, Council resolved as follows:

‘That Council endorse the action of the General Manager in his written submissions to the NSW State Government and that the General Manager prepare and submit a late motion to the forthcoming Shires’ Association Conference seeking advocacy of the LGSA for the removal of the “Trading Undertaking” classification of local water utilities.’

Since the April meeting, the General Manager has made a further written submission to the NSW Treasurer and has had a meeting with the Member for Bathurst, Paul Toole MP, who undertook to lobby the Treasurer on Council’s behalf. As well, the General Manager prepared and submitted a motion on behalf of Council to the 2012 Shires Association Conference being held in Sydney on 5/6 June 2012, a copy of which is attached. Unfortunately, all of Council’s submissions have been to no avail and the State Government is maintaining its stance that local government water utilities are ineligible for Natural Disaster Funding due to their classification as ‘Trading Undertakings’. Copies of the various replies to Council’s submissions are attached. This matter was discussed at length at the Centroc board meeting in Crookwell on 24 May and, whilst Council was guaranteed the support of all Centroc council’s when voting on Council’s motion at the Shires Conference, the Centroc executive undertook to raise the matter with Federal Ministers at the forthcoming Australian Council of Local Government Conference in Canberra. BUDGET IMPLICATIONS Nil POLICY IMPLICATIONS Nil



ATTACHMENTS 1 Letter from Andrew Gee MP 1 Page 2 Letter from Andrew Gee MP 1 Page 3 Letter from NSW Premier Barry O'Farrell MP 1 Page 4 Letter from NSW Treasurer Mike Baird MP 1 Page 5 Letter from NSW Parliamentary Secretary for Police and Emergency

Services 1 Page

6 Email from GM to Mike Baird MP 1 Page 7 Motion to 2012 Shires Conference 1 Page

ATTACHMENT NO: 1 - LETTER FROM ANDREW GEE MP ITEM NO: 05


ATTACHMENT NO: 2 - LETTER FROM ANDREW GEE MP ITEM NO: 05


ATTACHMENT NO: 3 - LETTER FROM NSW PREMIER BARRY O'FARRELL MP

ITEM NO: 05


ATTACHMENT NO: 4 - LETTER FROM NSW TREASURER MIKE BAIRD MP

ITEM NO: 05


ATTACHMENT NO: 5 - LETTER FROM NSW PARLIAMENTARY SECRETARY FOR POLICE AND EMERGENCY SERVICES

ITEM NO: 05


ATTACHMENT NO: 6 - EMAIL FROM GM TO MIKE BAIRD MP ITEM NO: 05


ATTACHMENT NO: 7 - MOTION TO 2012 SHIRES CONFERENCE ITEM NO: 05




06) Flood Damage Repairs - Emergency Repairs (395) (Tony Perry)

RECOMMENDATION: 1. That, in accordance with Section 55, (3), (i), (k), Council endorse the action of the

General Manager in engaging contractors, without going to tender, to carry out urgent permanent restoration of trunk mains damaged by floods on 1 March 2012, this action being necessary to ensure the continuing security of the potable water supply to a number of towns and villages within the supply network, thereby preventing a public health risk to those communities.

REPORT As Council is well aware, on the evening of 1 March 2012, there was significant flood damage caused to Council’s trunk mains and Council staff worked tirelessly to effect emergency repairs to restore supply until such time as permanent repairs could be completed. Due to the need to expedite the permanent restoration of these trunk mains in order that there is no threat to the delivery of potable water to a number of villages in Cabonne and Weddin Council areas and to prevent a public health risk to those communities, the General Manager has given authority for the restoration works, which in some instances could be over the tendering threshold of $100,000.00, to be completed without tendering under Section 55, (3), (i) and (k) which reads as follows:

55 What are the requirements for tendering?

(3) This section does not apply to the following contracts: (i) a contract where, because of extenuating circumstances,

remoteness of locality or the unavailability of competitive or reliable tenderers, a council decides by resolution (which states the reasons for the decision) that a satisfactory result would not be achieved by inviting tenders.

(k) a contract made in a case of emergency. For Council to be compliant with Section 55 of the Local Government Act, 1993, it requires Council to decide by resolution that the works need to be carried out without going to tender due to the works being a case of emergency and requiring an urgent response to ensure that there is no threat to the water supply for the residents and commercial businesses in a number of towns and villages within the supply network.

BUDGET IMPLICATIONS A supplementary vote of $200,000 included in March 2012 Budget Review Statement to be funded from reserves and $300,000 included in 2012/2013 budget also to be funded from reserves. POLICY IMPLICATIONS Nil



ATTACHMENTS Nil



07) Lake Rowlands - Safety Upgrade Review (94) (Tony Perry)

RECOMMENDATION: 1. That engineering consultants GHD be appointed to carry out the Lake Rowlands

upgrade options study at a cost of $38,160 (excl. GST) and to carry out a survey required for the development of Concept Design Layouts at an estimated cost of $5,000.

REPORT Councillors would remember that to comply with the requirements of the NSW Dam Safety Committee (DSC), consultants GHD were engaged to carry out a Societal Risk Assessment (SRA) of the existing Lake Rowlands Dam. This assessment (completed in February 2011) was in addition to the Lake Rowlands Dam Safety Review (March 2008), Lake Rowlands Dam Hydrology and Dambreak Study (July 2009) and Lake Rowlands Dam Embankment Stability Analysis (May 2009). As mentioned above, this SRA was required by the DSC to assess whether Lake Rowlands meets the new requirement of being secure in the event of a 1 in 100,000 year flood occurrence. On completion, the SRA found that the Societal Risk is below the DSC’s Limit of Tolerability and is within the ALARP region for which remedial works are to be considered to ensure that the risk is as low as reasonable practicable. In order to lower the risk posed by the dam, it is recommended to undertake an option study for upgrading the dam and evaluate the cost effectiveness of the options using cost to save a statistical life (CSSL) method and other measures in accordance with ANCOLD (Australian National Committee on Large Dams) guidelines. Among the recommended options are:

1. Raise the embankment dam crest by approximately 1.5m, or 2. Construct a wider auxiliary spillway to alleviate the risk posed by an extreme

flood and to prevent overtopping of the embankment dam, which accounts for about 96% of the risk.

Council was advised by DSC that, if they could be provided with a plan that showed a new dam would be built within 10 years, they were prepared to defer any requirements for upgrade works on the existing dam. Unfortunately, as Council is now not able to provide any concrete assurance that a new dam would proceed or even eventuate, Council has no option other than to proceed with upgrading the dam to meet the new safety guidelines and, accordingly, $2,000,000 has been included in the 2012/2013 budget (assuming a 50% subsidy will be received). However, as mentioned above there are two recommended options for the proposed upgrade and the General Manager has sought fee proposals from GHD and the NSW Office of Public Works (PWD) to carry out an options study to assess which is the preferred option and to report back to Council and DSC with their recommendation and full cost estimate. The two (2) fee proposals have been received and the General Manager and Operations Manager have assessed the two proposals and recommend the appointment of GHD to carry out the Lake Rowlands upgrade options study at a cost



of $38,160 (excl. GST) and to carry out a survey required for the development of Concept Design Layouts at an estimated cost of $5,000. BUDGET IMPLICATIONS Included in 2012/2013 budget POLICY IMPLICATIONS Nil ATTACHMENTS Nil



08) 2010/2011 NSW Water Supply Performance Monitoring Report (217) (Tony Perry)

RECOMMENDATION: 1. That the 2010/2011 Water Supply Performance Report for Local Government

Water Utilities be received and noted. REPORT The NSW Office of Water (NOW) has released the 2010/2011 NSW Water Supply and Sewerage Performance Monitoring Report which continues to show that local water utilities are continuing to make good progress in complying with the requirements of the Best-Practice Management of Water Supply and Sewerage Guidelines 2007. The Report will be tabled at this meeting. NOW advise that overall compliance with the 19 requirements of the Best Practice Guidelines is now 86%, compared to 46% six years ago. Compliance with each requirement is a pre-requisite for eligibility for financial assistance towards the capital cost of backlog infrastructure under the Country Towns Water Supply and Sewerage program. Councils are reminded that they are now all expected to have substantially complied with the guidelines. NOW has also sent a copy of Council’s 2010/2011 TBL Performance Report (see attached). As reported last year, Central Tablelands Water has performed well in the 2010/2011 performance reports. The report shows that, in 2010/2011, Council was once again 100% compliant with all requirements of the Best-Practice Guidelines, including full cost recovery. And again, Council ranks fairly highly in other areas of the report when compared against water utilities of similar size and even when compared against the State median. Council’s 2010/2011 TBL Water Supply Performance Report is provided as an attachment to this business paper. BUDGET IMPLICATIONS Nil POLICY IMPLICATIONS Nil



ATTACHMENTS 1 Letter from Garry Hodson Acting Commissioner NOW 2 Pages 2 Sam Samra Email 1 Page 3 TBL Water Supply Performace 2 Pages 4 CTW Water Supply Action Plan 2 Pages 5 TBL Attachments 4 Pages

ATTACHMENT NO: 1 - LETTER FROM GARRY HODSON ACTING COMMISSIONER NOW

ITEM NO: 08


ATTACHMENT NO: 1 - LETTER FROM GARRY HODSON ACTING COMMISSIONER NOW

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ATTACHMENT NO: 2 - SAM SAMRA EMAIL ITEM NO: 08


ATTACHMENT NO: 3 - TBL WATER SUPPLY PERFORMACE ITEM NO: 08


ATTACHMENT NO: 3 - TBL WATER SUPPLY PERFORMACE ITEM NO: 08


ATTACHMENT NO: 4 - CTW WATER SUPPLY ACTION PLAN ITEM NO: 08


ATTACHMENT NO: 4 - CTW WATER SUPPLY ACTION PLAN ITEM NO: 08


ATTACHMENT NO: 5 - TBL ATTACHMENTS ITEM NO: 08










09) Forests NSW - Corporisation by NSW Government (217) (Tony Perry)

RECOMMENDATION: 1. That the information be noted. REPORT Councillors may or not be aware of a media release issued on 9 May 2012 by the Minister for Primary Industries, the Hon. Katrina Hodgkinson MP, advising that the NSW Government will make Forests NSW a state owned corporation. Forests NSW is currently what is called a public trading enterprise (heard that expression before!!!), meaning that it is expected to operate with competitive neutrality while also remaining part of a department through its reporting lines to the Director General of the Department of Primary Industries. The Minister in her media release states that the decision to corporatise reflects the Government’s recognition that there is much room for improving the financial performance of Forests NSW and delivering better returns to the community. The General Manager wonders what next, could it be water utilities? A copy of the full media release and letter for Forests NSW is attached for Councillors information. BUDGET IMPLICATIONS Nil POLICY IMPLICATIONS Nil ATTACHMENTS 1 Letter from Forestry NSW and Media Release 4 Pages

ATTACHMENT NO: 1 - LETTER FROM FORESTRY NSW AND MEDIA RELEASE

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10) National Broadband Network - Site Access Eugowra (124) (Tony Perry)

RECOMMENDATION: 1. That Council endorse the action taken to date by the General Manager in his

communication with the consultants working on behalf of the National Broadband Network.

REPORT On 21 March this year, Council received communication by email from a consultancy advising that they had been engaged by the National Broadband Network (NBN) to identify suitable site locations for the installation of infrastructure required to operate the wireless portion of the NBN project. The communication stated that:

• Preliminary site investigation work had identified Council’s reservoir site in Hill Street Eugowra may be a suitable location to install such infrastructure.

• The design of infrastructure and its exact location within the property had not been determined.

• The infrastructure is likely to comprise of a 40m monopole and associated equipment secured within an area approximately 100m2 in size.eg; 10m x 10m

• A copy of the proposed design, preferred location and proposed commercial lease terms would be provided to Central Tablelands County Council should Council be favourable towards allowing the NBN installation to occur on the land.

The General Manager replied advising that Council was open to the installation of communications infrastructure on Council’s reservoir site in Eugowra as detailed in their email of 21/3/12 and that he was not aware of any potential issues that would deem the land unsuitable for the proposed use. The General Manager also acknowledged that the proposed design, preferred location and proposed lease arrangements would be provided to Council for consideration at a future date. Subsequent to that communication, the General Manager received a further email on 15 May advising that they had received confirmation from the NBN that they had decided to proceed at this stage with an alternate location on a Eugowra property identified as Lot 37 DP 750182 located on the Nanima Road. The consultants noted this property lies adjacent to lots 1/2/3 DP 383826 (see attached) owned by Central Tablelands County Council on which stands a water tank facility and advised that the NBN would be interested to obtain an access dead over these 3 lots in order enter Lot 37 DP 750182 in the most direct way possible. They indicated an offer of $1500 as a one-off payment and a tenure period of 20 years total. Following a discussion with the Chairman, the General Manager advised the consultants that he could not see that Council would have a problem with granting access requested however this would be subject to Council consideration and resolution, which would also hinge on a considerable upgrade of the remuneration



offered. The General Manager advised that negotiations should lean towards starting at a more realistic requirement of $1,500 per year not just a one off payment. No further advice has been received from the consultants at this stage. BUDGET IMPLICATIONS Nil POLICY IMPLICATIONS Nil ATTACHMENTS 1 Location Map 1 Page

ATTACHMENT NO: 1 - LOCATION MAP ITEM NO: 10




11) Cabonne Council - Subdivision Development, Manildra (324) (Tony Perry)

RECOMMENDATION: 1. That Council offer Cabonne Council a two (2) year interest free deferred payment

for Section 64 developer charges on proposed Lots 14, 15, 16 and 17 in Lot 100 DP1110843 Manildra, with conditions in accordance with Council policy but with the need for a bank guarantee being replaced with a written guarantee of payment from Cabonne Council.

REPORT Council has received a letter from Cabonne Council ‘requesting that Cabonne Council be provided with headworks and installation charges on an interest free delayed payment basis for the Manildra subdivision.’ The letter further sought advice as to any incentive programs offered by CTW that may assist Cabonne Council in the timely release of residential allotments at Manildra from the proposed subdivision. Attached to this report are Cabonne Council’s letter and a plan of the two (2) subdivision options being considered by Cabonne Council. The General Manager has had discussions with Cabonne Council’s Design Manager, Mr Jason Theakstone, who has advised that, at this stage, it is only planned to release lots 14, 15, 16 and 17 in order to test the market. The General Manager advised Mr Theakstone that Council would consider Cabonne Council’s request at this Council meeting and advise. Council does have a policy of providing assistance to small developers by way of deferring payment on mains extension and developer charges for a period of two (2) years, interest free, on the condition that payment will be made on the sale of each block and that full payment would be due at the expiration of two (2) years for all remaining unsold blocks. A bank guarantee is also required under the policy. Council could consider extending this policy to Cabonne Council, for Section 64 developer charges only, without the need for a bank guarantee but requesting a guarantee in writing that payment for each block is made when each block is sold and that full payment for unsold blocks would be made at the expiration of the two year period. BUDGET IMPLICATIONS Nil POLICY IMPLICATIONS Nil



ATTACHMENTS 1 Letter from Cabonne Shire Council 2 Pages2 Map of proposed subdivision 1 Page

ATTACHMENT NO: 1 - LETTER FROM CABONNE SHIRE COUNCIL ITEM NO: 11


ATTACHMENT NO: 1 - LETTER FROM CABONNE SHIRE COUNCIL ITEM NO: 11


ATTACHMENT NO: 2 - MAP OF PROPOSED SUBDIVISION ITEM NO: 11




12) LGSA 2012 Water Management Conference (9) (Tony Perry)

RECOMMENDATION: 1. That Council give approval for the Chairman, General Manager, Operations

Manager and any other Councillor to attend the 2012 LGSA Water Management Conference in Wagga Wagga and that Councillors interested in attending should contact the General Manager to arrange registration

REPORT The 2012 LGSA Water Management Conference will be held in Wagga Wagga from Sunday 22 July 2012 to Tuesday 24 July 2012. The Chairman, General Manager and Operations Manager normally attend this Conference and, occasionally in the past another Councillor has attended. As early bird registrations closed on 11 June, the General Manager has, at this stage, registered the Chairman, General Manager and Operations Manager to attend. BUDGET IMPLICATIONS Nil POLICY IMPLICATIONS Nil ATTACHMENTS Nil



13) WBC Alliance - Executive Officer's Report (356) (Donna Galvin)

RECOMMENDATION: 1. That the information be noted. REPORT Report attached. BUDGET IMPLICATIONS Nil POLICY IMPLICATIONS Nil ATTACHMENTS 1 WBC Alliance Executive Officers Report 3 Pages

ATTACHMENT NO: 1 - WBC ALLIANCE EXECUTIVE OFFICERS REPORT

ITEM NO: 13



ITEM NO: 13



ITEM NO: 13




14) Purchase of Plant (87) (Darrell Sligar)

RECOMMENDATION: 1. That Council endorse the action of the Plant Committee. REPORT During the past two months Council purchased three vehicles, and sold three vehicles. Purchases 2 x 2012 Toyota Hilux Cab Chasis 4 x 4 $33,343.00 1 x 2012 Audi Q5 Sedan $54,290.00 Sales April 2012 – May 2012 Plant Sales

Plant Date of Purchase

Purchase Price

(GST exc) KM's (000) Sale Date Depreciation Sale Price

(GST exc) Profit/(Loss)

on sale

Nissan Murano 12/10/2011 $46,046 16 08/05/2012 $5,298 $35,454 ($5,294)

Toyota Hilux Utility 4x4 30/08/2010 $36,376 51 08/05/2012 $12,278 $31,818 $7,083

Toyota Hilux Workmate 29/03/2012 $19,061.00 22 30/05/2012 $8,334 $14,545 $3,818




15) Maintenance of Council's Systems (105) (Darrell Sligar)

RECOMMENDATION: 1. That the information be noted. REPORT a) Meter Reading

Meter reading for the final 2012 quarter commenced 16th April 2012 with Blayney Shire Council Commercial Reads, and was finalised on 8th May 2012 with Trunk Main ‘C’ Rurals. All faulty meters have been replaced.

b) Meter replacement/Service Replacement Program Council Staff have replaced 4 full services and 10 partial services during the past two months.

c) Hydrant/Valve Replacement Hydrant and Valve maintenance was carried out in the following towns and villages over the past two months: Blayney, Carcoar, Mandurama, Lyndhurst, Millthorpe, Canowindra, South Canowindra, Moorbel, Cargo, Cudal, Manildra, Grenfell and Quandialla. New valves were installed in Carcoar Street and Roseberry Place, Blayney. New hydrants were installed in Ewin Street, Blayney and Quarry Road, Moorbel.

d) Reticulation Flushing Town reticulation flushing was carried out in the towns of Canowindra, Moorbel and South Canowindra. Dead ends were flushed in Grenfell and Quandialla.

e) Pump Station Maintenance Pump Station maintenance has been carried out at North Canowindra, with new seals and bearings installed. A new motor was installed on the recycling pump at Blayney Filtration Plan replacing a faulty unit.

f) Reservoir Maintenance The following reservoirs were cleaned during the past two months: Blayney clear water storage, Carcoar clear water storage, Mandurama, Lyndhurst, Moorbel, Canowindra, Carcoar and Millthorpe.

g) Trunk Main Inspections Inspections have been carried out on the following trunk mains: Trunk Main ‘X’ Lake Rowlands to Blayney, Trunk Main ‘A’ Lake Rowlands to Carcoar Filtration Plant, Trunk Main ‘B’ Carcoar Filtration Plant to Mandurama, Trunk Main ‘D’ Carcoar Filtration Plant to Carcoar, Trunk Main ‘C’ Mandurama to Gooloogong. Two new scours were installed replacing faulty units on Trunk Main ‘C’ and Trunk Main ‘X’.

h) Trunk Main Flushing Flushing was carried out on Trunk Main ‘X’ Lake Rowlands to Blayney, Trunk Main ‘A’ Lake Rowlands to Carcoar Filtration Plant, Trunk Main ‘B’ Carcoar



Filtration Plant to Mandurama, Trunk Main ‘C’ Mandurama to Gooloogong, Trunk Main ‘P’ to Trunk Main ‘C’ to Somers, Trunk Main ‘G’ to Trunk Main ‘C’ Lyndhurst.

i) Flood Damage A further 100mm polyethylene line was installed over Jacks Creek near Canowindra. This allowed staff to service all the system with water from Lake Rowlands.

j) Staff Training Two staff members completed stage 1 in a Charles Sturt University Training and Assessment certificate.




16) Performance of Council's Systems (105) (Darrell Sligar)

RECOMMENDATION: 1. That the information be noted. REPORT k) Main breaks

The main failures recorded during the past two months are listed in the table below.

Location Date Size Comment

Canowindra Woodstock Road 14.04.2012 100mm DNR Blayney Carcoar Street 12.04.2012 100mm Leaking bend Cudal Main Street 19.05.2012 100mm Poly Shrinkage

Trunk Main ‘K’ “Moyne Farm” 20.04.2012 225mm Blown Ring Trajere Rural Scheme - - Poly Lines x 6

Nyrang Creek Rural Scheme - - Poly Lines x 4

l) Reservoir Levels Reservoir levels have been maintained at or near 100% of capacity.

m) Service Complaints and Requests A summary of service complaints and requests received for the last two months are as follows: Dirty Water 36 Meter New/Replacement 1 Leaking Meter 14 Leaking Service 0 Low Pressure 0 Main Break 1 Meter Burst 3 Meter not shutting off 3 No Water 2 Quality Complaint 0 Leaking Hydrant 1 Path Cock Failure 1 Main Inspection 1 A further summary detailing all service complaints and requests is enclosed with the business paper.

n) Lake Rowlands The level of Lake Rowlands has fluctuated from 97% to its present level of 92% at 4th June 2012.

BUDGET IMPLICATIONS Nil



POLICY IMPLICATIONS Nil ATTACHMENTS Nil



17) New Water Services (80) (Darrell Sligar)

RECOMMENDATION: 1. That the information be noted. REPORT During the past two months there has been six (6) new water services connected to Council’s mains. BUDGET IMPLICATIONS Nil POLICY IMPLICATIONS Nil ATTACHMENTS Nil



18) Water Leakage Account 9057-00000-3 (297) Water Leakage Account 1744-00000-9 (283)

(Tony Perry)

RECOMMENDATION: 1. That, as these matters deal with items that are subject to the affairs of an

individual, Council consider it in Committee of the Whole and that in terms of Section 10A (2) of the Local Government Act, the press and the public be excluded from the meeting of the Committee of the Whole.

ATTACHMENTS Nil



19) Questions on Notice (Tony Perry)

No questions on notice were received. ATTACHMENTS Nil



20) Proceed to Committee of the Whole (Tony Perry)

RECOMMENDATION: 1. That, as business for the Ordinary Meeting has now concluded, Council proceed

into Committee of the Whole to discuss the items referred to in the report. Council should exclude the press and public at this point, for confidential discussion on the items referred to Committee ATTACHMENTS Nil



21) Report of the Committee of the Whole (Tony Perry)

RECOMMENDATION: 1. That the recommendations of the Committee of the Whole be adopted. ATTACHMENTS Nil

Ordinary Meeting – 11 April 2012 Page No 1

Minutes of the Ordinary Meeting of Central Tablelands Water held at Blayney Shire Council, on Wednesday, 11 April 2012,

commencing at 10.30am Present Cr. John Farr (Chairman) Cabonne Cr. Kevin Duffy Cabonne Cr. Geoffrey McClelland (Deputy Chairman) Weddin Cr. Barry Hinde Weddin Cr. Geoffrey Braddon Blayney Cr. Kevin Radburn Blayney Tony Perry (General Manager) Darrell Sligar (Operations Manager) PUBLIC FORUM There were no persons in attendance at the time set aside for the public forum. APOLOGIES Nil CONFIRMATION OF MINUTES 12/021 RESOLVED:

That the Minutes of the Ordinary Meeting of Central Tablelands Water, held on 15 February 2012, being minute numbers 12/001 to 12/020 inclusive, be confirmed. (Cr. Duffy/Cr. Braddon)

CHAIRMAN’S MINUTE The Chairman stated that he had no minute to be recorded. 01) FINANCIAL MATTERS (4)

12/022 RESOLVED:

That the information be noted. (Cr. Braddon/Cr. Hinde)

02) INTEGRATED PLANNING & REPORTING (IP&R) (391)

12/023 RESOLVED:

1. That council endorses the draft: a. Delivery Plan 2012 – 2016 b. Operational Plan 2012- 2013 – Part 1 & 2 c. Workforce management Plan 2012 – 2016 d. Asset Management Strategy and Plans e. Long Term Financial Plan

This is Page No. 1 of the Minutes of the Ordinary Meeting held 11 April 2012.


To be placed on public display for a period of 28 days. 2. That the CTW Community Strategic Plan be adopted by Council. (Cr. Duffy/Cr. McClelland)

03) LAKE ROWLANDS AUGMENTATION (226)

12/024 RESOLVED:

That Council reiterate its previous resolution to support Centroc with its endeavours to provide water security for the Central West region and commend the General Manager for the content of his letters to the Minister. (Cr. Duffy/Cr. McClelland)

04) OFFICE OPERATING HOURS (84)

12/025 RESOLVED:

That Council formally adopt the administration office operating hours from 9.00am until 4.30pm. (Cr. Radburn/Cr. Braddon)

05) ANNUAL STAFF PICNIC (223)

12/026 RESOLVED:

That approval be given for the closing of Council’s administration office on Friday 11th May 2012 for the occasion of the Annual Award Staff Picnic Day. (Cr. Hinde/Cr. Radburn)

06) WBC ALLIANCE - EXECUTIVE MANAGER'S REPORT (356)

12/027 RESOLVED:

That the information be noted. (Cr. Braddon/Cr. Radburn)

07) FLOOD DAMAGE TO TRUNK MAINS (395)

12/028 RESOLVED:

That Council endorse the action of the General Manager in his written submissions to the NSW State Government and that the General Manager prepare and submit a late motion to the forthcoming Shires’ Association Conference seeking advocacy of the LGSA for the removal of the “Trading Undertaking” classification of local water utilities. (Cr. Duffy/Cr. McClelland)



12/029 RESOLVED: That the General Manager pass on Council’s thanks to the Operational Staff for their efforts during the recent flood damage to Council’s trunk mains and endorse the General Manager’s intentions to have a BBQ at the Canowindra Depot with the Operations staff with a free afternoon. (Cr. Duffy/Cr. Radburn)

08) PURCHASE OF PLANT (87)

12/030 RESOLVED:

That Council endorse the action of the Plant Committee. (Cr. Radburn/Cr. Braddon)

09) MAINTENANCE OF COUNCIL'S SYSTEMS (105)

12/031 RESOLVED:

That the information be noted. (Cr. Radburn/Cr. Braddon)

10) PERFORMANCE OF COUNCIL'S SYSTEMS (105)

12/032 RESOLVED:


11) NEW WATER SERVICES (80)

12/033 RESOLVED:


12) WATER LEAKAGE ACCOUNT 9477-00000-5 (297)

SECTION 64 DEVELOPER CHARGES – REQUEST FOR WAIVER (329)

12/034 RESOLVED: That, as these matters deal with items that are subject to the affairs of an individual, Council consider it in Committee of the Whole and that in terms of Section 10A (2) of the Local Government Act, the press and the public be excluded from the meeting of the Committee of the Whole. (Cr. Duffy/Cr. Hinde)

13) PROCEED TO COMMITTEE OF THE WHOLE

12/035 RESOLVED:

That, as business for the Ordinary Meeting has now concluded, Council proceed into Committee of the Whole to discuss the items referred to in




the report. (Cr. Radburn/Cr. Hinde)

14) REPORT OF THE COMMITTEE OF THE WHOLE

WATER LEAKAGE ACCOUNT 9477-00000-5 (297)

RECOMMENDATION:

That Council grant the consumer a concession of 50% of the consumption charge as recorded on the February 2012 water account. (Cr. McClelland/Cr. Radburn)

SECTION 64 DEVELOPER CHARGES – REQUEST FOR WAIVER (329)

Proceedings in brief:

A motion was moved by Cr. McClelland and seconded by Cr. Hinde, that the Section 64 developer charges be reduced to $10,998 (3 x $3,666) being the equivalent of the capital contribution charge for an infill block. This motion was lost. RECOMMENDATION: That the developer be advised that their request for the waiving of Section 64 developer charges has been declined. (Cr. Radburn/Cr. Braddon)

12/036 RESOLVED:

That the recommendations of the Committee of the Whole be adopted. (Cr. Braddon/Cr. McClelland)

15) 2012 ANNUAL SHIRES’ ASSOCIATION CONFERENCE

12/037 RESOLVED:

That the Chairman, Cr Braddon, Cr Duffy and General Manager be authorised to attend the 2012 Shires’ Association Conference, and the Chairman, Cr Duffy and General Manager be authorised to attend the 2012 ALGA Conference in Canberra. (Cr. Braddon/Cr. McClelland)

Next Meeting: The next meeting of Central Tablelands Water will be held in Molong

on Wednesday, 13 June 2012. There being no further business, the Chairman declared the meeting closed at 12.05pm

Documents

CENTRAL TABLELANDS Water