MINUTES OF THE WORKS AND TECHNICAL SERVICES ......During a recent EPA License audit, concerns over potential contamination was raised. Council officers are in the process of starting

Page 1 of 42 of the Minutes of the Works And Technical Services Committee of the Upper Hunter Shire Council held on Tuesday 13 October 2015

MINUTES OF THE WORKS AND TECHNICAL SERVICES COMMITTEE TUESDAY 13 OCTOBER 2015, 1.00pm

PRESENT: Cr Maurice Collison and Cr Lorna Driscoll. APOLOGIES: Cr Ron Campbell, Cr Deidre Peebles and Mr Waid Crockett (General Manager). IN ATTENDANCE: Mr Alan Fletcher (Director Infrastructure Services), Mr Nick Havyatt (Manager Works Delivery), Mr Jeff Bush (Manager Strategic Assets), Mr Paul Turri (Manager Water Waste), Mr Simon Boulton (Project Manager), Mrs Belinda Olteanu (Infrastructure Support Officer) and Mr John Murray. DECLARATIONS OF INTEREST: Nil


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WORKS & TECHNICAL SERVICES REPORTS ......................................................... 3

WTS.10.1 WORKS PROGRAM - INFRASTRUCTURE SERVICES ..................................................... 3 WTS.10.2 WORKS PROGRAM - INFRASTRUCTURE SERVICES - WATER & SEWER ......................... 8 WTS.10.3 CAPITAL WORKS UPDATE ........................................................................................ 12 WTS.10.4 ABERDEEN JUNIOR CRICKET CLUB - JEFFERSON PARK UPGRADE ............................. 15 WTS.10.5 SCONE TO MURRURUNDI RURAL WATER SUPPLY SCHEME FEASABILITY STUDY

OUTCOME ............................................................................................................... 18 WTS.10.6 SCONE TO MURRURUNDI WATER SUPPLY PIPELINE - COST TO INCREASE PIPE SIZE

TO ALLOW FOR UNEXPECTED FUTURE DEMAND ....................................................... 37

Report To Works And Technical Services Committee 13 October 2015

Infrastructure Services


WORKS & TECHNICAL SERVICES REPORTS

WTS.10.1 WORKS PROGRAM - INFRASTRUCTURE SERVICES

RESPONSIBLE OFFICER: Alan Fletcher - Director Infrastructure Services

AUTHOR: Rayleen Tumbers - Administrative Assistant Casual

PURPOSE

The purpose of the report is to provide an update on works undertaken over the previous month and those planned for the upcoming month.

RECOMMENDATION

That the Committee receive the report and note the information. BACKGROUND

The report includes information on Infrastructure Services works including roads, bridges, and parks.

The report provides information for Councillors and staff to address ratepayer enquiries regarding construction and maintenance works.

REPORT/PROPOSAL

Some of the major construction projects currently under construction are:

Garlands Bridge works are complete. Approaches have commenced and have been delayed due to wet weather.

Hayden Street kerb and gutter works have commenced. Moonan Cutting up hill side works have commenced it is expected that the crew will reach

the top bench this week and then clean up the site ready for drilling contractors.

Works priority has been given to capital works requiring completion. OPTIONS

Nil.

CONSULTATION

Director Infrastructure Services Infrastructure Services Managers Supervisors and Team Leaders STRATEGIC LINKS

a. Community Strategic Plan 2013+

The report addresses the following focus areas and community strategic objectives in accordance with the Community Strategic Plan 2013+.

Focus Area 6 “Maintain and enhance civil infrastructure and community assets to meet the needs of current and future generations” with the following Community Strategic Objectives:




19. Provide for replacement and improvement of community infrastructure through best practise and risk management.

20. Maintain and upgrade the road network, with consideration given to additional sealing only on an economically justifiable basis.

22. Develop economic and intergenerational plans for future infrastructure needs. 23. Advocate, facilitate and provide traffic management and public transport facilities

to meet the needs of the community. b. Delivery Program

The report addresses the following objectives as described in the 2015/16 DPOP. Roads and Bridges – Local & Regional To undertake roads and bridge maintenance and construction works to Council’s standards and specifications so as to improve road safety and minimize future expenses.

c. Other Plans

Implementation of asset management plans. IMPLICATIONS a. Policy and Procedural Implications

Road maintenance guidelines as identified within Asset Plans and Strategic Plans. These guidelines include grading and service frequency based on a variety of factors including vehicle movements, road utilisation etc.

b. Financial Implications

Identified within individual items in the 2015/16 DPOP. c. Legislative Implications

Not applicable. d. Risk Implications

Road and asset inspections are undertaken to mitigate and minimise Council’s risk exposure in these areas.

e. Other Implications

Not applicable. CONCLUSION The updated report is provided as Attachment 1 and details work undertaken over the previous month and works planned for the upcoming month.




ATTACHMENTS

1 Works Completed September/October 2015

RESOLVED that the Committee receive the report and note the information.

Moved: L Driscoll Seconded: M Collison CARRIED

ATTACHMENT NO: 1 - WORKS COMPLETED SEPTEMBER/OCTOBER 2015 ITEM NO: WTS.10.1


Works Completed September 2015 Location Chainage/Details Work Area

Capital Works Moonan Cutting Works on the river side of the road and

cutting side Investigation works completed, contractor finalising design. Earthworks on the Cutting started

Contractor

Garlands Bridge On Stewarts Brook Road - Bridge replacement

Bridge complete approaches are 80% complete. Scone Road construction

Waverley Street upgrade Waverley Street from Gundy Road to Short Street

Rehabilitation of road and replacement kerb and gutter

Scone construction

Aberdeen Skate Park and Tennis Court

Works at Aberdeen Skate park and Tennis Court

Continue with landscaping, tennis court resurfacing Aberdeen

Bell Bridge Approaches Maintenance repair to the approaches of Bell Bridge Hunter Road

Widened approaches, works needs to be sealed. Murrurundi Grader

Haydon Street Kerb and Gutter Adelaide to Polding

Construction of kerb and gutter and pavement works

Kerb and Gutter installed roadworks continueing Scone concrete construction

Sealed road maintenance Maintenance works across the network in reseal areas

Works ongoing All

Ringwood, Wollar Road and Bunnan Road Heavy Patching

Heavy patch works on Ringwood, Wollar and Bunnan Roads

Works completed Merriwa crew

Grading Completed Wollar Maintenance Grading Works Merriwa Settlement Lane Maintenance Grading Works Merriwa Hulks Maintenance Grading Works Merriwa Neverfail Maintenance Grading Works Merriwa Redwell Maintenance Grading Works Merriwa Binks Maintenance Grading Works Merriwa Rothbury Maintenance Grading Works Merriwa Killoe Maintenance Grading Works Merriwa Thompsons Creek Patch Grading Works Scone Upper Dartbrook Patch Grading Works Scone Kars Springs Patch Grading Works Scone Dry Creek Maintenance Grading Works Scone Yarrandi Maintenance Grading Works Scone Bowmans Gully Maintenance Grading Works Scone Back Creek Maintenance Grading Works Scone Kenelea Maintenance Grading Works Scone Glencoe Maintenance Grading Works Scone Common Maintenance Grading Works Scone Waverley Maintenance Grading Works Murrurundi Pages River Road Maintenance Grading Works Murrurundi Branch Creek Maintenance Grading Works Murrurundi Carters Rd Rouchel Maintenance Grading Works Scone

ATTACHMENT NO: 1 - WORKS COMPLETED SEPTEMBER/OCTOBER 2015 ITEM NO: WTS.10.1


Works Planned October 2015

Location Chainage/Details Work Area Capital Works Haydon Street Kerb and Gutter Adelaide to Polding

Construction of kerb and gutter, stormwater pipework and pavement works

Works expected to be completed in October Scone concrete construction

Sealed road maintenance Maintenance works across the network in reseal areas

Works ongoing All

MR105 Moonan Cutting Rock Cutting

Works on constructing access track onto the top section of Moonan cutting

Works are programmed to commence in early September

Scone Maintenance

Waverley Street upgrade Waverley Street from Gundy Road to Short Street

Rehabilitation of road and replacement kerb and gutter

Scone construction

Garlands Bridge On Stewartsbrook Road - Bridge replacement

Bridge complete approaches have commenced and have been delayed due to wet weather.

Scone Road construction

Gundy Road Entrance to town Pipe extensions and headwalls Scone Merriwa Town Heavy patching Merriwa Programmed Grading works

Lettybrook Maintenance Grading Works Merriwa Comiala Maintenance Grading Works Merriwa Kruilaya Maintenance Grading Works Merriwa Willy Wally Maintenance Grading Works Merriwa Wyoming Maintenance Grading Works Merriwa Rosebud Maintenance Grading Works Merriwa Halcombe Maintenance Grading Works Scone Ranch Maintenance Grading Works Scone Leighton Park Maintenance Grading Works Scone Warlands Creek Maintenance Grading Works Murrurundi Haydons Woolshed Maintenance Grading Works Murrurundi Parkins Maintenance Grading Works Murrurundi Maintenance Grading Works Murrurundi




WTS.10.2 WORKS PROGRAM - INFRASTRUCTURE SERVICES - WATER & SEWER


AUTHOR: Paul Turri - Manager Water and Waste

PURPOSE The purpose of the report is to provide an update on works undertaken over the previous month and those planned for the upcoming month.

RECOMMENDATION That the Committee receive the report and note the information.

BACKGROUND The report provides information for Councillors and staff to address ratepayer enquiries regarding construction, maintenance and other activities in the area of Water & Sewer. REPORT/PROPOSAL Progress of major projects is listed in Attachment 1. Planned works are also included in the attachment. The projects currently underway include:

Kingdon Street, Scone between Main and Park Streets. Water Main Replacement. Hill Street, Scone between Kingdon and Liverpool Streets. Water Main Replacement.

An additional required project is soil and ground water monitoring around the Septic dam at the Scone Sewerage Treatment Plant. The Septic dam would be described as a small clay lined dam that receives the waste from septic pump out trucks. During a recent EPA License audit, concerns over potential contamination was raised. Council officers are in the process of starting a soil and ground water monitoring program. The results of the monitoring and EPA’s position will be the subject of a separate report to Council. The following is a list of completed 2014/15 projects where the payment of retention monies have recently been made. The contract between Council and Knock Contracting included a standard clause where money is retained during a defects and liability period after the works have been completed.

Abn – Upp Campbell St Mains Replacement (Graham-Reservoir) Scn – Scott St Mains Replacement (Cooper to Liverpool) Abn – Short St Mains Replacement Mdi – Mayne St (Adelaide to Wilson Memorial Reserve) Mdi – Haydon St – Mains Replacement (Victoria to Adelaide) Mdi – O’Connell St – link Reservoirs to hospital zone




Normal maintenance activities have been carried out as identified within the Delivery Program & Operational Plan (DPOP). OPTIONS Nil. CONSULTATION

Director Infrastructure Services Infrastructure Services Managers Supervisors and Team Leaders

STRATEGIC LINKS a. Community Strategic Plan 2013+ The report addresses the following focus areas and community strategic objectives in accordance with the Community Strategic Plan 2013+. Focus Area 6 “Maintain and enhance civil infrastructure and community assets to meet the needs of current and future generations” with the following Community Strategic Objectives: 19. Provide for replacement and improvement of community infrastructure through best

practice and risk management. 21. Provide secure and potable water supply and sewerage services to meet the demands

of future generations to urban areas of the Shire. 22. Develop economic and intergenerational plans for future infrastructure needs. b. Delivery Program The report addresses the following objectives as described in the 2015/16 DPOP. Water Supplies To provide an adequate and secure potable water supply to recognised standards in defined areas on a cost effective basis. Sewage Services To maintain a sewage system for the transportation and treatment of sewage to licence requirements and encourage appropriate further expansion of services. c. Other Plans Implementation of asset management plans. IMPLICATIONS a. Policy and Procedural Implications Maintenance guidelines as identified within Service Levels, Asset Plans and Strategic Plans.




b. Financial Implications Identified within individual items in the 2015/16 DPOP. c. Legislative Implications Protection of the Environment Operations Act 1997 Water Management Act 2000 Public Health Regulation 2012 d. Risk Implications Maintenance and Capital activities play a vital role in reducing Council’s risk exposure in these areas. e. Other Implications Not applicable. CONCLUSION The updated report is provided as Attachment 1 and details work undertaken over the previous month and works planned for the upcoming month. ATTACHMENTS

1 Water and Sewer - monthly update - October 2015



ATTACHMENT NO: 1 - WATER AND SEWER - MONTHLY UPDATE - OCTOBER 2015 ITEM NO: WTS.10.2


Works Completed September 2015 Location Chainage/Details Work Area

Kingdon St, Scone. Between Main and Park St. Replace 90mm poly (that is through rail ballast) with a 200mm CIDL.

Scone/Aberdeen Water Supply.

Main St, Scone. Between Kingdon and Kelly St Replacement of 100mm dia CI with 150mm M‐PVC main.


Aberdeen, Merriwa, Murrurundi & Scone. Selected sewer mains in the retic system.

Sewer main cleaning (heavy jetting) prior to sewer relining. Sewer

Capital Works in progress Location Chainage/Details Work Area

Hill St, Scone Between Kingdon and Liverpool St Replacement of 100mm dia with 150mm M‐PVC main.


Scone Saleyards. Engage consultant to address water reuse and trade waste issues.

Consultant engaged. Sampling of effluent water in progress. Scone Saleyards.

Capital Works Planned October 2015 Location Chainage/Details Work Area

Aberdeen & Scone Selected sewer mains in the retic system. Sewer main relining Aberdeen and Scone Sewer.

Merriwa. Selected sewer mains in the retic system. Sewer main relining Merriwa Sewer.

Murrurundi. Selected sewer mains in the retic system. Sewer main relining Murrurundi Sewer.




WTS.10.3 CAPITAL WORKS UPDATE


AUTHOR: Rayleen Tumbers - Administrative Assistant Casual

PURPOSE The purpose of this report is to provide an update on capital works projects within the current budgetary period.

RECOMMENDATION That the Committee receive the report and note the information.

BACKGROUND In association with the 2015/16 Delivery Program and Operational Plan, a schedule of the planned capital works has been prepared. Budget holders have been asked to identify when the project is planned to be delivered. REPORT/PROPOSAL The spreadsheet provided under separate cover shows the expenditure up to the end of September 2015, 25% through the 2015/16 financial year. It shows that YTD the program is 37% behind the monthly allocated budget with 11% of the total annual revised budget spent. Key projects being worked on include:

Garlands Bridge construction is completed. Approaches construction is underway and expected to be completed mid October (subject to availability of sealing contractor).

Haydon Street kerb & gutter and stormwater drainage underway. Moonan Cutting up hill side works have commenced it is expected that the crew will

reach the top bench this week and then clean up the site ready for drilling contractors. Kingdon Street, Scone between Main and Park Streets water main replacement. Hill Street, Scone between Kingdon Liverpool Streets water main replacement.

OPTIONS 1. By receiving and noting the capital works update, Council is advised of works progress

and associated works scheduling. 2. Councillors may seek adjustments to works timing and priorities where identified. CONSULTATION

Director Infrastructure Services Manager Works Delivery Manager Strategic Assets Manager Water & Waste




STRATEGIC LINKS a. Community Strategic Plan 2013+

The report addresses the following focus areas and community strategic objectives in accordance with the Community Strategic Plan 2013+. Focus Area 6 “Maintain and enhance civil infrastructure and community assets to meet the needs of current and future generations” with the following Community Strategic Objectives.

19. Provide for replacement and improvement of community infrastructure through

best practice and risk management. 20. Maintain and upgrade the road network, with consideration give to additional

sealing only on an economically justifiable basis. 21. Provide secure and potable water supply and sewerage services to meet the

demands of future generations to urban areas of the Shire. 22. Develop economic and intergenerational plans for future infrastructure needs. 23. Advocate, facilitate and provide traffic management and public transport facilities

to meet the needs of the community. b. Delivery Program

The report addresses the following objectives as described in the 2015/16 DPOP.

Roads and Bridges – Local & Regional To undertake roads and bridge maintenance and construction works to Council’s standards and specifications so as to improve road safety and minimize future expenses.

Water Supplies To provide an adequate and secure potable water supply to recognized standards in defined areas on a cost effective basis. Sewage Services To maintain a sewage system for the transportation and treatment of sewage to license requirements and encourage appropriate further expansion of services.

Fire Services To protect life, property and the environment from the effects of bushfire disasters within the UHSC area.

Stormwater

To provide Stormwater drainage systems to manage flows c. Other Plans

Many projects are identified within Community Plans, Emergency Plans or specific operational plans ie Standards of Fire Cover for Rural Fire Service infrastructure. Council’s Asset Management Plans are also reference documents for the development of the capital works program.




IMPLICATIONS a. Policy and Procedural Implications

Some projects involve grant funds, community donations or use of other funding sources such as R2R funds and s94 contributions. Expenditure of these funds is in accordance with relevant policies and legislative requirements.

b. Financial Implications

All works have been budgeted for in accordance with the Delivery Program and Operational Plan (DPOP) 2015/16.

c. Legislative Implications

Not applicable. d. Risk Implications

The correct planning and completion of capital projects assists Council to mitigate their risk exposure.

e. Other Implications

Not applicable.

CONCLUSION The capital works update report provides Councillors with a review of progress of the 2015/16 financial year capital works.

ATTACHMENTS

Nil.


Moved: M Collison Seconded: L Driscoll CARRIED




WTS.10.4 ABERDEEN JUNIOR CRICKET CLUB - JEFFERSON PARK UPGRADE


AUTHOR: Jeff Bush - Manager Strategic Assets

PURPOSE The purpose of this report is to seek Council’s endorsement in relation to cricket facilities upgrade at Jefferson Park, Aberdeen.

RECOMMENDATION

That Council support the upgrade of cricket facilities at Jefferson Park subject to successful grant applications by the Aberdeen Junior Cricket Club.

BACKGROUND Correspondence has been received from the Aberdeen Junior Cricket Club in relation to upgrading practice nets and resurfacing the cricket pitch at Jefferson Park. REPORT/PROPOSAL The surface of the existing synthetic pitch is in poor condition and requires replacement. The two existing practice nets are inadequate to cater for the current needs of the club, including four junior teams, two senior teams, St Joseph’s High School, Aberdeen Public School and the surrounding Rouchel area, who during the cricket season all use these nets for cricket practice. It is proposed to upgrade these nets and provide two additional nets to cater for this high level of use. The installation of the additional practice wickets will immediately lead to an increase in physical activity through the increased time and space available for social and competitive cricket training. The facility would allow more players to train each evening, increasing club numbers and increasing player retention through a direct pathway from junior to senior cricket.

The total costs of the proposed work is $33,000. The Cricket Club has submitted applications for Stronger Communities grant funding ($15,000) and NSW Cricket ($3,000). The cricket Club has committed available funds of $9,000 towards the upgrade and are applying to Council to fund the residual of $6,000. OPTIONS

Agree to provide a contribution of $6,000 to the cost of works. Decline the request.

CONSULTATION

Director Infrastructure Services Aberdeen Junior Cricket Club




STRATEGIC LINKS a. Community Strategic Plan 2013+

The proposal meets key focus area 6 of the Community Strategic Plan “Maintain and enhance civil infrastructure and community assets to meet the needs of current and future generations”. The upgrade of current practice nets and the provision of two additional practice nets is consistent with the Community Strategic Objective 19, “Provide for replacement and improvement of community infrastructure through best practice and risk management”.

b. Delivery Program

The proposal meets the objectives: To facilitate the provision of recreation and cultural facilities to meet identified community

need and To ensure Upper Hunter Shire residents and visitors have the opportunity to participate

in a diverse range of sporting and recreational pursuits.

c. Other Plans Open Space & Recreation Needs Study – Implementation Plan Item 4.9 – Club development, education and training – inform sporting and community groups of available funding programs and grant funding opportunities to allow groups to become more self-sufficient. Item 5.15 – Maintenance – allocate and annual program for sports facility asset renewal and replacement. IMPLICATIONS a. Policy and Procedural Implications The vision for Council’s open space network is that it promotes a quality, healthy and rural lifestyle by providing a diverse range of sporting and passive recreational pursuits that are accessible to all members of the community. The upgrade and enhancement of cricket facilities at Jefferson Park is fundamental to achieving this vision. b. Financial Implications There is currently no funding set aside for additional cricket net installation at Jefferson Park. The request to fund the residual amount of $6,000 from a total project cost of $33,000 could be met by allocating S94 Open Space contributions or from within current budget allocations. c. Legislative Implications N/A d. Risk Implications N/A




e. Other Implications N/A CONCLUSION

The provision of upgraded and enhanced cricket facilities at Jefferson Park, Aberdeen will contribute to Council’s strategic vision to achieve lifestyle activities that continue to make the Shire a place of envied and sought after community based resources.

ATTACHMENTS

There are no enclosures for this report

RECOMMENDATION TO COUNCIL: That Council support the upgrade of cricket facilities at Jefferson Park subject to successful grant applications by the Aberdeen Junior Cricket Club.





WTS.10.5 SCONE TO MURRURUNDI RURAL WATER SUPPLY SCHEME FEASABILITY STUDY OUTCOME


AUTHOR: Simon Boulton - Project Manager

PURPOSE The purpose of this report is to outline the findings of the Scone to Murrurundi Rural Water Supply Scheme Feasibility Study (the Scheme) and to accept the recommendations made by the study so that the design of the Scone to Murrurundi Water Supply Pipeline (the Pipeline) can be progressed.

RECOMMENDATION That Council:

1. Advise applicants to the Rural Water Supply Scheme that the feasibility study identified that the Scheme is not viable; and

2. Offer potential rural customers along the pipeline route an urban style connection including an outline of the costs to connect.

BACKGROUND Following the successful grant application for the design and construction of a water supply pipeline from Scone to Murrurundi, Council engaged consultant PSI Delta Pty Ltd to determine the feasibility of integrating a Rural Water Supply Scheme into this new pipeline. The Scheme was proposed for rural water users along the Pipeline route. The scheme was required to be financially viable in its own right. To achieve this, the scheme users would have to cover all costs above and beyond what is required to solely supply water to Murrurundi and the villages, as well as ongoing costs for operation and maintenance. As part of the study NSW Public Works (who are preparing the pipeline concept design) were also engaged to undertake hydraulic modelling and prepare capital cost estimates to determine the increase in costs to provide the scheme. REPORT/PROPOSAL Components of the Feasibility Study Initially PSI Delta undertook community consultation to identify rural user demand at varying water prices per megalitre. From the demand study the three scheme models were developed and considered further:

Model 1 - Domestic and Stock (D&S)customers only with water price at $1,000/ML – this option was developed because the small volume of water demanded by D&S would require the least infrastructure cost;




Model 2 – High tariff customers with willingness to pay at $1,600/ML – this option was developed because the high revenue the scheme would generate given some irrigation customers are happy to pay higher tariff to get water delivered; and

Model 3 – all customers with water price at $1,000/ML – this option is also known as Base Case option as all identified customers are included.

PSI Delta then undertook a financial assessment of each Model to determine their financial viability based on a 20 year period.

Outcomes of the Feasibility Study The financial assessment found that each Model was not financially viable as the income collected was not sufficient to cover the costs. During hydraulic modelling of the Scheme it was identified that there may be some excess capacity within the pipeline to supply a small number of rural users without any upgrade in infrastructure being required. Effectively, rural users could access this water provided they pay for connection and the water used. Potential Urban Extension Scheme An alternative scheme was considered to utilise the excess capacity identified in the pipeline. The model for this scheme was based on an extension of the urban scheme, similar to that used between Scone and Aberdeen, whereby users pay the cost of the connection upfront and then pay water consumption tariffs for annual connection and water usage (referred to herein as the Urban Extension Scheme). The tariffs applicable to the Urban Extension Scheme would be the same as those paid in Murrurundi. Council has estimated the connection cost for the Urban Extension Scheme to be $17,000. The current water usage rates for Murrurundi are $2.03 per kL for the first 200kL and $3.07 per kL thereafter. Note that the $17,000 cost is in today’s cost, has no allowance for excavation due to time/inflation and has minimal contingency. As the Urban Extension Scheme is based on utilising excess capacity within the pipeline, there are several limitations that apply to its implementation, as follows:

1. There will need to be excess water available in the pipeline. This will not be confirmed until completion of the concept design;

2. The number of connections would need to be limited so that no infrastructure upgrades are required to provide the rural water. The water flow rate for rural users may depend on the number of connections provided. For example, if there is high demand for connections then the flow rate could be reduced to provide an increased number of connections. Note the maximum flow rate offered would be 0.15L/s;

3. Once the maximum number of connections was reached then no further connections could be offered; and

4. Connections would be integrated into the pipeline during installation and therefore no connections could be offered after installation of the pipeline.

OPTIONS

1. Abandon the Rural Water Supply Scheme altogether. 2. Abandon the Rural Water Supply Scheme and offer an Urban Extension Scheme to rural

users, subject to the limitations listed for this scheme.




CONSULTATION

The Consultation Section is to provide a bullet point listing of who has been consulted when writing the report. This could cover internal or external parties and/or both.

General public through public meetings and call for EOI. General Manager Director Infrastructure Services Manager Water and Waste Manager Economic Development and Tourism Project Manager PSI Delta Pty Ltd NSW Public Works

STRATEGIC LINKS a. Community Strategic Plan 2013+ The project addresses the following focus areas and community strategic objectives in accordance with the Community Strategic Plan 2013+: ECONOMIC

5) Enhance Economic and Employment Opportunities and Promote Development 15. Encourage a diverse economy whilst promoting and preserving our agricultural and equine industries.

6) Maintain and enhance civil infrastructure and community assets to meet the needs of current and future generations:

22. Develop economic and intergenerational plans for future infrastructure needs. CIVIC LEADERSHIP

7) Provide community leadership through open, accountable and efficient governance: 25. Encourage an open and participatory Council, with an emphasis on community engagement, action and response.

b. Delivery Program The project addresses the following Water Services objectives as described in the 2015-16 DPOP:

To provide an adequate and secure potable water supply to recognised standards in defined areas on a cost effective basis.

c. Other Plans N/A IMPLICATIONS a. Policy and Procedural Implications Council’s Water Supply - Policy – Connection to Rural Properties would need to be modified to accommodate the provisions for an Urban Extension Scheme on the Scone to Murrurundi Pipeline.




b. Financial Implications A Rural Water Supply Scheme would not be viable without Council subsidy is therefore not viable. The proposed Urban Extension Scheme would be cost neutral to Council as the cost for connections would be collected upfront and a water usage tariff would cover the ongoing operational and maintenance costs to supply water. If the Rural Water Scheme is abandoned then Council would be able to sell or continue to earn a return on its water access licenses. c. Legislative Implications NIL. d. Risk Implications If Council was to proceed with a Rural Water Supply Scheme then it would be liable to subsidise the shortfall in funding for the scheme. Because of the high pressures in the pipeline, connections for any scheme are required to be built into the pipeline at the time of installation. Therefore, if an Urban Extension Scheme is to be offered, it would have to be offered and accepted prior to detailed design of the pipeline. There would not be an opportunity for Council to offer rural users a connection once the pipeline is installed. e. Other Implications NIL. CONCLUSION A feasibility assessment for the inclusion of a Rural Water Supply Scheme along the Scone to Murrurundi water supply pipeline has found that such a scheme is not financially viable due to the potential income not covering the additional costs to required establish and maintain the scheme. It is recommended that not proceed with establishing a separate Rural Water Supply Scheme. An extension of the urban scheme may be offered to potential rural users along the pipeline as an alternative, provided the limitations of this scheme are complied with. ATTACHMENTS

1 Rural Water Supply Scheme Scone to Murrurundi Pipeline - Feasibility - PSI Delta - Final Report Sept 23




RECOMMENDATION TO COUNCIL:

That Council:

1. Advise applicants to the Rural Water Supply Scheme that the feasibility study identified that the Scheme is not viable; and

2. Offer potential rural customers along the pipeline route an urban style connection including an outline of the costs to connect.

Moved: M Collison Seconded: L Driscoll CARRIED

ATTACHMENT NO: 1 - RURAL WATER SUPPLY SCHEME SCONE TO MURRURUNDI PIPELINE - FEASIBILITY - PSI DELTA - FINAL REPORT SEPT 23

ITEM NO: WTS.10.5


RURAL WATER SCHEME SCONE TO MURRURUNDI PIPELINE UPPER HUNTER SHIRE COUNCIL

REPORT SEPTEMBER 2015


ITEM NO: WTS.10.5


VERSION NO. DATE AUTHOR REVIEWER RELEASE APPROVED

ISSUED TO NO. OF COPIES

1 23/9/15 CL GC GC SB, SC 1

Disclaimer

This document is for the exclusive use of the client for which it was prepared and is not to be relied upon by any other person. Psi-Delta has made every effort to ensure that the information provided is accurate but errors and omissions can occur and circumstances can change from the time that the report or document was prepared. Therefore, except for any liability that cannot be excluded by law, Psi-Delta excludes any liability for loss or damage, direct or indirect, from any person relying (directly or indirectly) on opinions, forecasts, conclusions, recommendations or other information in this report or document.

© Psi-Delta Pty Ltd. 2015

Psi-Delta Pty Ltd 401 Collins St Melbourne VIC 3000

P +613 9093 0000 E [email protected]


ITEM NO: WTS.10.5


1 INTRODUCTION AND EXECUTIVE SUMMARY 4

1.1 INTRODUCTION 4

1.2 EXECUTIVE SUMMARY 4

2 DEMAND ASSESSMENT 6

2.1 DEMAND ASSESSMENT SURVEY 6

2.2 DEMAND ASSESSMENT RESULTS 6

3 FINANCIAL EVALUATION 10

3.1 INTRODUCTION 10

3.2 THE FINANCIAL MODEL 10

3.3 MODEL RESULTS 12

3.4 CONCLUSIONS FINANCIAL EVALUATION 13

4 OPTIONS 14

5 RECOMMENDATIONS 15


ITEM NO: WTS.10.5


1 INTRODUCTION AND EXECUTIVE SUMMARY

1.1 INTRODUCTION

Upper Hunter Shire Council (Council) has been successful in obtaining funding for the construction of the pipeline from Scone to service domestic customers in Murrurundi. Council again looked at the potential to establish a rural water supply scheme using this new pipeline.

For any rural scheme to be established required rural demands be known before the Murrurundi pipeline is designed and built. The total volume of water entitlement held by Council for the rural scheme is 769 Hunter River 1A unit shares (megalitres, [1 megalitre =1,000,000 litres]). The Murrurundi pipeline is likely to follow the New England Highway from Scone to Wrights Road north of Wingen and then the Highway again south of Murrurundi.

The rural scheme will only proceed if there is sufficient acceptable demand contracted from customers prepared to pay annual charges that will support the scheme. Any surplus water shares will be sold.

A demand assessment was designed and conducted by Psi Delta and served as a basis a concept design and costing by Public Works Department (PWD).

Psi Delta performed the financial evaluation of the identified options.

1.2 EXECUTIVE SUMMARY

The rural demand assessment was carried out on the basis of a scheme that would have a separate set of supply conditions better suited to rural customers who may have higher individual volumes of demand but be able to accept relatively lower flow rates.

Demands were presented to Public Works for costing and the result was:

identified small stock and domestic demands of less than 5 megalitre (ML) a year could be accommodated from the pipeline without increasing the size of the pump and pipe infrastructure and the associated significant expense

Larger demands of more than 5 ML required increased sizing of infrastructure

The financial evaluation undertaken by Psi Delta showed that the revenue from tariffs for larger demands fell well short of the revenues required to finance the larger infrastructure

Following these results being provided, a discussion was held with UHSC on the merits of proceeding with a separate rural scheme which, if the larger demands were excluded, would only deliver a small volume of water to a few customers.

The conclusion reached was that it was simpler and easier to manage if an extension of urban supply be offered to those rural customers on the pipeline seeking smaller volumes only. A similar arrangement is understood to apply to other Council customers near Aberdeen.

This option was not costed as part of this project but because it has fewer customer connections, it is expected to have a similar capital cost to Option 1 which dealt with individual demands of less than 5 ML. It may however have possibly lower revenue from tariffs depending on how much water customers use, the level of tariffs and whether any minimum payment is imposed.

The recommendation is that this urban extension scheme be used to supply customers and not a separate rural scheme.


ITEM NO: WTS.10.5


2 DEMAND ASSESSMENT

2.1 DEMAND ASSESSMENT SURVEY

Following meetings and publicity about the potential for a rural scheme to be set up in conjunction with the Murrurundi pipeline, a demand assessment was carried out to assess demand.

This demand assessment used a questionnaire which provided a description of the proposed scheme and a précis of supply conditions. It then sought volume demanded from each customer.

Supply conditions included:

'Take or pay’ contracts, that is water tariffs were fixed each year based on the contracted volume.

Water is to be delivered to a point just within the customers property if the property is within a 10 metres of the trunk pipeline route. The customer will be responsible for the costs associated with reticulating water beyond this point.

Requirement to receive water into on-farm storages.

Based on water demand, Council committed to cost the scheme, and then was to advise customers if the scheme will proceed.

Table 1 Water product described in the demand assessment

Water product Annual volume contracted

Flow-rate maximum

Connection fee and usage tariffs

A. Stock and domestic unlimited access

Up to 5 megalitres

Daily 1% of total volume contracted

Connection fee and usage tariffs as for proposed domestic supply tariffs (approx $1,600/ML pa)

C. Irrigation supplies unlimited access

More than 10 megalitres per supply point

Daily .7% of total volume contracted

Connection fee at cost

Usage tariffs as for domestic supply tariffs

2.2 DEMAND ASSESSMENT RESULTS

2.2.1 TOTAL VOLUME AND LOCATION OF DEMAND

A total number of seventeen customers responded to the survey, with one customer providing no volume of demand. Seven customers require Domestic & Stock supply only, with four wanting 5ML/yr and the other three less than 5ML/yr. For customers who demand water mainly for irrigation purposes, three of them have demands of more than 30ML/year.

The total volume of demand exceeds 196ML per year at the minimum price surveyed which was $600/ML/yr. At $1,000/ML the volume of demand drops to 176ML/yr.

Figure 1 below shows the location of customers identified in the demand assessment. Demands are located between Scone and Wingen with some of the larger volume irrigation demands further west and thus requiring more costly delivery infrastructure than if they were closer to Scone.


ITEM NO: WTS.10.5


2.2.2 DEMAND ASSESSMENT RESULTS

Table 2 Demand survey results, below shows demand at each price.

Table 2 Demand survey results

Annual tariff $ML/yr Demands of <5ML/yr (S&D)

Demands of >5ML/yr (Irrigation)

Total demand (ML)

$600 19 177 196

$800 18 168 186

$1,000 13.5 162.5 176

$1200 7 129 136

$1,400 2 74 76

$1,600 2 46 48

$1,800 1 35 36

$2,000 1 33 34

$2,200 0 2 2


ITEM NO: WTS.10.5


Figure 1 Demand for UHSC Rural Scheme


ITEM NO: WTS.10.5


2.2.3 SENSITIVITY OF DEMAND TO PRICES

The sensitivity of demand to price was assessed at range of prices from $600/ML to $2,000/ML.

Results are presented below:

0

0.5

1

1.5

2

2.5

0

50

100

150

200

250

$600/ML $800/ML $1000/ML $1200/ML $1400/ML $1600/ML $1800/ML $2000/ML

Flow

Rat

e (M

L/da

y)

ML/

year

Toal Volume

Flow rate

Figure 2 Sensitivity of demand to price (Note: Daily flow rate is assumed at 1% of annual entitlement)

Interpretation:

Demand decreases as water prices increase

There is one big drop in demand at water prices exceeding $1,000/ML and another drop in demand at water prices exceeding $1,600/ML.

Using the flow rate assumptions, daily flow rate decreases from 1.76ML/day at $600/ML to 0.31ML/day at $2,000/ML with a loss of ~0.1ML per $100 increase in the volumetric charge on average

Key message:

The maximum gross revenue (volume of water demand times water price) is generated at the water price of $1,000/ML

2.2.4 OPTIONS DEVELOPED

Based on the demand results, three demand options were developed to estimate its financial feasibility. Those options are:

Option 1- D&S customers only with water price at $1,000/ML – this option was developed because the small volume of water demanded by D&S would require the least infrastructure cost

Option 2 – High tariff customers with willingness to pay at $1,600/ML – this option was developed because the high revenue the scheme would generate given some irrigation customers are happy to pay higher tariff to get water delivered

Option 3 – all customers with water price at $1,000/ML – this option is also known as Base Case option as all identified customers are included


ITEM NO: WTS.10.5


3 FINANCIAL EVALUATION

3.1 INTRODUCTION

The objective of the financial analysis is to evaluate the impact of the Rural Water Scheme on the net costs and revenues from the Scone-Murrurundi pipeline system based on the assessed rural demand and PWD provided construction costs based on this demand.

A financial model has been used to simulate the financing and cash flows over the project life which is nominally set at 20 years associated with construction and operation of the three schemes. The model is also used to demonstrate the sensitivities of the various projects to changing conditions and assumptions.

3.2 THE FINANCIAL MODEL

The costs and incomes that have been considered and integrated in the financial model include:

Capital and operating costs

Costs included in the model are all costs associated directly with construction and operation of the project and include:

Capital costs associated with developing the infrastructure for water delivery including costs of pipeline, pumping stations, balance tanks and offtakes as supplied by PWD

Costs of operating and maintaining the infrastructure

Administration and overheads; and

Financing costs on the basis of the project being 100% debt funded

Revenues

Income directly attributable to the water supply infrastructure has been included in the analysis and includes:

Identified volume of water supplied (sold) and number of customers connected

Tariffs based on take or pay contracts set at $1,000/ML for the base case

Connection fees of $2,000 per outlet

Residual value is equal to the NPV of the cash flows for a further 20 years of the project life following the initial 20 year period. However its impact is minimal.

3.2.1 FINANCIAL ASSUMPTIONS

The inputs and assumptions used for the financial model are outlined in Table 3 below:


ITEM NO: WTS.10.5


Table 3 UHSC Rural Scheme options

Item Value Comment

Project term 20 years -

Interest rate (loan) 5.5% Source: NAB Business Options Prime

Project construction Completed in one year -

Contingency construction costs

+15% of total construction cost

Source: NSW Public Works

Administration cost $250/outlet -

Gearing 100% 100% gearing was assumed meaning that all funding will be borrowed at commercial lending rates

Debt term 20 years Equivalent to the assessed project term

Inflation 2.3% Source: The Reserve Bank of Australia

3.2.2 ENGINEERING ASSUMPTIONS

Engineering costs were based on a preliminary evaluation by PWD. It should be noted that the cost for outlets is a broad estimate only, not supported by a detailed build up of costs. This $35,000 per outlet cost may be an over-estimate for the smaller outlets delivering only 2,800 L per day.

For more detailed information on the engineering assumptions please refer to Appendix – RWS Results and Costings provided by the NSW Public Works.

3.2.3 CUSTOMER ASSUMPTIONS

“Take or pay” contracts have been assumed for the financial model such that payment for the annual contracted volume is received regardless of actual deliveries of water. An initial connection fee of $7,000 per connection was assumed to contribute to the cost of connecting individual customers.

3.2.4 DEMAND ASSUMPTIONS

The demand assumptions used in the financial model have been determined on basis of the demand assessment performed by Psi Delta for the Rural Water Scheme.

Three options are summarised in the below table.

Table 4 Options Summary

Scheme Number of connections

Total water to be delivered (ML/year)

Water price ($/ML)

Option 1- D&S only 7 13.5 1,000

Option 2 – High tariff 6 48 1,600

Option 3 – All customers

17 176 1,000


ITEM NO: WTS.10.5


3.2.5 BULK WATER CHARGES

StateWater charges and Department of Natural Resources and Mines charges will apply to water stored in Glenbawn Dam. This is assumed at $4.48/ML and has been escalated on the basis of the expected CPI rate.

It should be noted no charges have been included in the model for infrastructure and energy costs to transport water from Glenbawn to the Scone storage.

3.3 MODEL RESULTS

3.3.1 IDENTIFIED OPTIONS

Table below summarises the results of the preliminary financial analysis.

Table 5 Results of Financial Analysis

Option 1 Option 2 Base Case

Total capital cost (including 15% contingency)

$281,750 $1,744,263 $3,586,160

Annual revenue $13,500 $76,800 $3,586,160

Annual O&M cost $8,335 $17,225 $47,410

NPV 20 Years -$267,750 -$1,732,263 -$3,552,160

NPV per ML delivered -$19,833 -$36,089 -$20,183

3.3.2 PROJECT VIABILITY

The three options have been investigated to examine what parameters would need to be varied to make projects viable>

(a) Minimum volumetric tariff ($/ML/yr) of water to cover all costs and return NPV=0

The volumetric price range used in the financial model has been determined through preliminary discussions with the relevant stakeholders and a range of prices was included in the questionnaire with a maximum price of $2,200/ML with minimal demand at this price.

However without any external contribution to the project, minimum water prices required to ensure the project is viable (20 year NPV greater than or equal to zero) for the various options are presented below:

Option 1 - $3,341/ML



The price customers would need to pay is very high - much higher than prices seen with most other S&D schemes around Australia and prices used in the demand survey. However most of these S&D schemes are adjuncts to irrigation schemes this lowering costs. Tariffs for purpose built schemes tend to be much higher.

The required pricing was performed assuming a constant demand, while from the demand survey results, it is clear demand drops significantly before the tariffs reach $2,000/ML.

(b) Minimum volumetric tariff ($/ML/yr) of water to cover covering operating and financial expenses

The financial model was used to determine the minimum price of water for each of the three options to generate sufficient revenues to cover the operating and financial expenses. In other words, the minimum price required so that the project does not increase debt year


ITEM NO: WTS.10.5


after year. However this does not result in any reduction in the level of debt over the project lifetime.

Results are shown below:




(c) Upfront capital contributions required to produce an NPV=0

Without any additional external contribution, the Rural Water Scheme is not a viable project. Given the tariffs customers said they would pay in the demand survey, the total revenue from tariffs does not cover operating and financing costs, nor does it repay debt. In fact the scheme accumulates debt. Therefore the financial model was used to assess what capital contribution would need be made to allow the project revenues to meet costs.

The minimum external contributions required to make the options viable is set out below:

Option 1 – $267,750

Option 2 – $1,732,263

Option 3 – $3,552,160

(d) Potentially viable option

If engineering and construction costs for outlets can be reduced to $20,000 for each of the seven Stock and Domestic (S&D) outlets, with only S&D outlets and if the water tariffs at the pipeline are $1,600/ML the project is viable with an NPV=$2,000.

One of the guiding principles for the project was that it had to be self-sustaining. Therefore these options are not acceptable given the subsidy required is equal to a minimum of $38,250 per customer for Option 1 and $208,000 for Option 3.

3.4 CONCLUSIONS FINANCIAL EVALUATION

All options investigated would require volumetric water prices well above the expected customers’ capacity to pay

External capital contributions may make the project may allow tariffs to then meet costs.

Presently, Option 1 is the most favoured given its least cost. However for tariffs with this option to meet costs would require that customers to pay tariffs much higher than they have indicated they would pay or a substantial capital contribution.

A further option for which willingness to pay would need to be assessed and more detailed engineering provided is that if the offtake cost was reduced to $20,000 per outlet and water price increased to $1,600/ML, this options would provide a positive NPV


ITEM NO: WTS.10.5


4 OPTIONS

Table 6 Evaluation of Option 1 compared with an urban extension option. The financial analysis indicates that Option 1 is not viable but that other options are less viable.

In light of this information Council is proposed a further options which is to simply extend the urban scheme to rural customers.

Table 6 Option 1 compared with urban expansion option

Criteria Proceed with separate rural scheme using least cost option

Extended urban scheme option

Net cost/revenue for council Limited, may require subsidy Depending on how configured may be cost/revenue neutral, or better

Ease of management by council

Separate scheme so may be more effort than it is worth

Slightly higher meter reading cost but otherwise same as urban supplies. Need to be clear that a one-off offer as later supplies could be more expensive

Economic development Very limited - mostly rural residential enhancement rather than true economic uses

Limited - rural residential enhancement

Fit with urban scheme Entails running two schemes and associated complexity

Can be run with urban scheme


ITEM NO: WTS.10.5


5 RECOMMENDATIONS

Given the requirement that any rural scheme would need to be viable in its own right, it is recommended that council should not proceed with any of the three options.

Based on this there appears to be no basis for establishing a separate rural scheme so it is recommended that council no longer proceeds with this concept.

Council has in at least one other location extended the urban scheme (similar supply conditions and tariffs) to rural areas and this could be a cost effective way of meeting some of the rural demand. It is recommended that Council pursue this further option.




WTS.10.6 SCONE TO MURRURUNDI WATER SUPPLY PIPELINE - COST TO INCREASE PIPE SIZE TO ALLOW FOR UNEXPECTED FUTURE DEMAND


AUTHOR: Simon Boulton - Project Manager

PURPOSE The purpose of this report is to advise Council of the options and associated costs to future proof the Scone to Murrurundi water supply pipeline against any unexpected future increases in town/village water demand and to select an option for proceeding with the pipeline design.

RECOMMENDATION That Council:

1. Accept the growth projections by NSW Public Works adopted for the current pipeline design and continues design and construction of the pipeline by public works as planned.

2. Commit an additional $156,000 to the upfront cost of the pipeline to allow for future capacity.

BACKGROUND The Scone to Murrurundi water supply pipeline is being design to supply water to Murrurundi and the villages of Parkville, Wingen and Blandford based on 30 year average annual connection growth of 0.39%. Councilors have asked what the cost would be to implement measures to “future proof” the pipeline against any unexpected increases in demand, without the need to install a second pipeline. At the Councilor briefing on 28 September 2015, the cost to increase the pipe size by one was presented to Council. i.e. Typically increase the pipe diameter 50mm plus upgrade pumps and balance tanks. The cost was $3.1M, which would need to be funded upfront by Council as the cost to do this is not covered by the current funding. Since this briefing Council staff have worked with the pipeline design consultant (NSW Public Works) to develop a second option which is based around upgrading the current design in the future to increase the flow output through the same sized pipe. REPORT/PROPOSAL Current Design Capacity of the Pipeline

1.35 ML/day (1ML = 1,000,000 Litres) to Murrurundi and Villages Based on an equivalent annual dwelling growth rate of 0.39% over 30 years.




If the Pipeline is increased in size now, what is the additional supply and cost?

Additional 0.48 ML/day (35% increase in supply) Capital cost $3.1M – incurred upfront (22%increase in cost)

If we don’t increase the pipe size now, what could we do in the future to increase supply for unexpected future demands? If the pipeline is not increased in size now, there is the potential to increase the flow in the pipeline in the future without increasing the pipeline size. This could be done by subdividing the two existing pipe segments and installing two additional pumps and balance tanks at these locations. This would halve the elevation each pump is required to pump water allowing them to pump water through the pipe with a much higher velocity. What would be the additional supply and cost if the pipeline is upgraded in the future?

Additional 1.05 ML/day (77% increase in supply) Capital cost $3.6M – incurred in the future when required (based on present value) To allow for these works in the future some works would need to be incorporated into the

current design, including connection points for the future pump stations and increased pump shed sizes to allow for the installation of bigger pumps. The additional upfront cost for this option would be $156,000.

A schematic example the above options is included in the attachment. OPTIONS 1. Council accepts the growth projections adopted for the current pipeline design and

continues design and construction of the pipeline as planned, knowing it can increase the output of the pipeline in the future if required.

2. Council increases the size of the pipe by one size along its full length to allow for an unexpected future increase in town/village water demand.

CONSULTATION

Council Briefing 28 September 2015 Director Infrastructure Services Manager Water and Waste Project Manager Pipeline designer – NSW Public Works

STRATEGIC LINKS a. Community Strategic Plan 2013+ The project addresses the following focus areas and community strategic objectives in accordance with the Community Strategic Plan 2013+: ECONOMIC

6) Maintain and enhance civil infrastructure and community assets to meet the needs of current and future generations:




21. Provide secure potable water supply to meet the demands of future generations to urban areas of the Shire.

CIVIC LEADERSHIP

8) Advocate for the community to other levels of Government and non-government organisation:

28. Advocate to State and Federal Government for a fair and equitable share of fiscal resources and provision of Government services for the community.

b. Delivery Program The project addresses the following Water Services objectives as described in the 2015-16 DPOP:

To provide an adequate and secure potable water supply to recognised standards in defined areas on a cost effective basis.

c. Other Plans NIL. IMPLICATIONS a. Policy and Procedural Implications NIL. b. Financial Implications The additional cost to increase the size of the pipeline now would have to be funded by Council. The cost of this is estimated at $3.1M. If the option to upgrade the pipe flow rate in the future was chosen, then it is recommended that a larger balance tank be installed initially at an additional cost of $58k to Council to prevent the need to fully replace it in the future (total cost $300k if done in future). c. Legislative Implications NIL. d. Risk Implications Upsizing the Pipe Now If the pipeline is upsized now, then there is a risk that the additional capacity may never be utilised, particularly if the currently adopted growth models prove to be correct. Upgrading the Pipe in the Future By installing the pipeline now to meet the current adopted growth model, then the risk of over expenditure is minimal, particularly if the projected growth is not exceeded.




If demands increase in the future, beyond the capacity of the pipeline, then Council may have the opportunity to apply for external funding to cover upgrade costs at that time. This opportunity would be lost if the pipeline is upsized now. e. Other Implications NIL. CONCLUSION Unexpected future demands for water supply in Murrurundi and the villages could be catered for by increasing the size of the pipeline now or by the installation of additional pumps in the future. ATTACHMENTS

1 Scone to Murrurundi Pipeline - Concept Design - WTS Committee - Cost to increase pipe size - Copy

RECOMMENDATION TO COUNCIL:

That Council:

1. Accept the growth projections by NSW Public Works adopted for the current pipeline design and continues design and construction of the pipeline by public works as planned.

2. Commit an additional $156,000 to the upfront cost of the pipeline to allow for future capacity.

Moved: L Driscoll Seconded: M Collison CARRIED THERE BEING NO FURTHER BUSINESS THE MEETING CLOSED AT 2.10PM.

ATTACHMENT NO: 1 - SCONE TO MURRURUNDI PIPELINE - CONCEPT DESIGN - WTS COMMITTEE - COST TO INCREASE PIPE SIZE - COPY

ITEM NO: WTS.10.6


1 SCONE TO MURRURUNDI PIPELINE ‐ COST TO INCREASE PIPE SIZE/CAPACITY

1.1 SUMMARY OF CURRENT CONCEPT DESIGN PIPE AND PUMP SIZES

Balance Tank Scone Parkville Wingen 150kL Blandford Murrurundi

Pump Pump

70kW 50kW

Pipe (mm)

200 150 150 150 150

Design Domestic Supply: 1.35 ML/day ‐ including growth projections

Spare Supply Capacity to Balance Tank: 0.135 ML/day

1.2 COST TO INCREASE PIPE SUPPLY IN THE FUTURE


Pump Pump

100kW 70kW

Pipe (mm)

200 150 150 150 150

Increase in Supply Capacity to Murrurundi: 1.05 ML/day (77% increase)

Upfront Additional Cost: $ 156,000

Additional Future Cost: $ 3,600,000 – based on present value

Advantages Disadvantages Increased supply capacity Ability to cater for an increase in connections at any point along pipe route

Additional capacity only supplied as required

Increased operational/maintenance costs

Council will have to contribute an extra funds upfront

Install additional balance tanks and pumps in the future if required. 110 kW and 100kw pump and 2 x250kL balance

Upgrade pumps during lifecycle replacement (10-20yr cycle) to 110kW and 100kW pump size if supply increase

is required

Install larger balance tank here

upfront

ATTACHMENT NO: 1 - SCONE TO MURRURUNDI PIPELINE - CONCEPT DESIGN - WTS COMMITTEE - COST TO INCREASE PIPE SIZE - COPY

ITEM NO: WTS.10.6


1.3 COST TO INCREASE PIPE SIZE/CAPACITY NOW


Pump Pump

100kW 70kW

Pipe (mm)

250 200 200 200 200

Increase in Supply Capacity to Balance Tank: 0.33 ML/day

Increase in Supply Capacity to Murrurundi: 0.48 ML/day (35% increase)

Additional Cost: $ 3,121,410

Advantages Disadvantages Increased supply capacity Ability to cater for an increase in connections at any point along pipe route

Increased operational/maintenance costs

Additional capacity may not be utilised

Documents

MINUTES OF THE WORKS AND TECHNICAL SERVICES ......During a recent EPA License audit, concerns over potential contamination was raised. Council officers are in the process of starting