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CWMS MANAGEMENT COMMITTEE MEETING 27 OCTOBER 2014

Local Government Association of South Australia ECM 610381

CWMS MANAGEMENT COMMITTEE A G E N D A

27 October 2014 1.30pm

Eyre Peninsula Region Room Local Government House

148 Frome Street, Adelaide

The CWMS Management Committee has been established to: provide support and oversight to the LGA in the management of the:

State Government-subsidised new CWMS construction projects; Federal Government subsidised Wastewater Re-use projects; and the CWMS Advisory Service provided to Councils by the LGA.

determine the terms under which these CWMS projects will be funded and managed, and to provide information regarding these terms to the State Government and the National Water Commission.

consider and respond to any other matter relating to CWMS referred to the Committee by the President of the LGA or the Minister for State/Local Government Relations.

CWMS Management Committee Members present to the Management Committee the interests and views of the Organisations that they represent. Minutes and agendas can be downloaded from www.lga.sa.gov.au/goto/cwms.

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A G E N D A Page

CW271014/1 WELCOME, PRESENT & APOLOGIES

Apologies Received:

Nil.

CW271014/2 MINUTES OF PREVIOUS MEETING

CW271014/2.1 Confirmation of Previous Minutes – 23 June 2014

That the minutes of the meeting held on 23 June 2014 be confirmed as an accurate record.

4

CW271014/2.2 Confirmation of Special Meeting Minutes – 31 July 2014

That the minutes of the special CWMS meeting held on 31 July 2014 be confirmed as an accurate record.

9

CW271014/2.3 Confirmation of Special Meeting Minutes – 15 September 2014

That the minutes of the special CWMS meeting held on 15 September 2014 be confirmed as an accurate record.

11

CW271014/2.4 Business Arising from the Minutes

Program Manager Services – Verbal update by the Chair

That the CWMS Management Committee notes the verbal update.

CW281113/3 CONFIDENTIAL IEMS

CW271014/3.1 New Schemes Progress and Funding Under separate cover

CW281113/4 GENERAL BUSINESS

CW271014/4.1 Report to LGA Board That the CWMS Management Committee notes the report submitted to the September 2014 LGA Board Meeting.

13

CW271014/4.2 ESCOSA issues raised by Councils – Verbal Update by Chair and Program Manager That the CWMS Management Committee requests the Chair to initiate dialogue with ESCOSA as a matter of urgency re simplifying reporting and pricing requirements.

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Page

CW271014/4.3 LGA Forward Budget Estimates – To be tabled That the CWMS Management Committee notes the tabled report.

CW271014/4.4 Current CWMS charges by all Councils – To be tabled That the CWMS Management Committee notes the tabled report.

CW271014/5 ANY OTHER BUSINESS

For discussion

CW271014/6 NEXT MEETING

Next regular meeting to be held at a day and time yet to be determined.

CW271014/7 CLOSE

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1 CWMS Management Committee Meeting Day Month 2013


MINUTES OF THE CWMS MANAGEMENT COMMITTEE MEETING HELD ON MONDAY 23 JUNE 2014 IN THE EYPRE PENINSULA REGION BOARDROOM AT LOCAL GOVERNMENT HOUSE, 148

FROME STREET, ADELAIDE AT 1.30PM

The meeting started at 1.35pm

WELCOME, PRESENT & APOLOGIES CW230614/1 The Chair welcomed members to the meeting. Mr Andrew Haste Director Member Services, LGA (Chair) Mr Mark Goldstone CEO, City of Prospect Mt Russell Peate CEO, Mid Murray Council Mr Martin Allen Department for Water Mr Tony Farror SA Health Mr Richard Gayler Program Manager, GPE Ms Vicky Newton Minutes Secretary, LGA Also in attendance Mr Adam Gray Director Environment, LGA Ms Felicia Whiting GEITS GROUP of Companies Dr Rajesh Nellore GEITS GROUP of Companies Apologies were received/noted from: Mr David Daminato Environment Protection Authority Mr Michael Barry DPTI The Chair welcomed everyone to the meeting and advised the representatives from ESCOSA were an apology. The Chair advised Michael Barry will no longer be a voting member of the committee. The Chair welcomed Felicia Whiting and Raj from GEITS GROUP of Companies to the meeting. Felicia presented to the committee the designs for the Jamestown GEITS system. Felicia advised the technical documentation has been submitted from SA Health for comment/approval.

MINUTES OF PREVIOUS MEETING CW230614/2 Confirmation of Previous Minutes – 17 February 2014 CW230614/2.1 That the minutes of the meeting held on 17 February 2014 be confirmed as an accurate record

RESOLVED

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Business Arising from the Minutes CW230614/2.2 Nil.

VERBAL PROGRESS UPDATES CW230614/3 Address by Felicia Whiting, GEITS Group, Floating Solar Progress CW230614/3.1 That the CWMS Management Committee notes the presentation.

RESOLVED

Felicia & Raj left the meeting at 2.20pm LGA Solar Councils Pilot Project - Jamestown CWMS Floating Solar CW230614/3.1 Adam Gray gave a verbal update to the written report. Adam advised the LGA will contribute $40,000 for this project and is currently in negotiations with Council of where funding will be directed to. The Program Manager advised David Rattley from Northern Areas Council had requested funding assistance for legal costs. Tony Farror advised these are issues with temperature control and with water having to remain in the basin. The system requires approval from SA Health and there are some risks associated. Adam sought guidance from the committee on the reporting function and it was agreed the CWMS Management Committee would regularly ensure internal liaison with Adam as necessary. That the CWMS Management Committee

1. supports the allocation by the LGA of $40,000 from Adam Gray’s Solar Energy fund to the Jamestown Floating Solar project; and

2. expects to receive a 12 month progress update, including a template on key learnings achieved.

RESOLVED

Adam left the meeting at 2.33pm Invited Guest from ESCOSA: Water Pricing and other ESCOSA matters of interest CW230614/3.2 The invited guest from ESCOSA did not attend. The Chair gave a brief statement of current ESCOSA activities of interest to Committee. That the verbal report of the Chair be noted..

RESOLVED

GENERAL BUSINESS CW230614/4

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River Murray Shacks Option Paper - Verbal Report by the Chair CW230614/4.1 Russell Peate declared an interest in the item. The Program Manager provided an update in David Daminato's absence. The Program Manager advised the study has been completed in line with the terms and conditions of the allocation by Committee, and he is satisfied that the recommendations are appropriate to ensure consideration of the broader applicability of the findings across the CWMS Sector. The Program Manager will circulate the full report to the committee via email. That the CWMS Management Committee;

1. notes the verbal report; and 2. defers formal consideration to the next meeting.

RESOLVED

Cities and Towns Project Finalisation - Verbal Report By the Chair CW230614/4.1 The Chair gave a verbal update to the committee and advised the Final Report was recently submitted to Canberra. He advised the individual Council reports are available to the committee via dropbox if needed. The Chair recognises the significant achievement the projects have had and that the great benefit to the sector. That the CWMS Management Committee notes the verbal report.

RESOLVED

EPLGA CWMS Joint Services User Group Establishment Grant CW230614/4.3 The Program Manager gave a brief verbal update to the written report and advised that the proposals by the Eyre Region are in line with the recommendations of the roadshow attended and addressed by himself and the Program Manager on the Eyre Peninsula. That the CWMS Management Committee notes the report and approves the allocation of $17,500 to the EPLGA in accordance with the approved submission from the proponent, on a claim-back basis, subject to all items of expenditure being accepted by the Chair/Program Manager as eligible for establishing the User Group.

RESOLVED

KoM HRAP Validation and Carbon Sequestration Extension CW230614/4.4 The Program Manager gave a brief verbal update to the written report. The committee discussed the need for clear guidelines to the Flinders University of what is to be measured in the study, and that their reporting needs to be clear, concise and relevant to matters of significance to the Sector on carbon sequestration for use across the sector.

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That the CWMS Management Committee notes the report and endorses continuing to support Flinders University to model carbon sequestration at the Kingston on Murray CWMS HRAP disposal site to a maximum of $8,000pa for three years ($24,000 in total).

RESOLVED

New Schemes Progress and Planned Expenditure CW230614/4.5 Russell Peate declared an interest in the item and left the meeting at 3.12pm The Program Manager gave a brief verbal update to the written report and advised that the Subsidy Fund is now oversubscribed by approximately $5,000,000 on present indications. This does not include all eligible projects, but it does include those which have received seed funding from Committee in accordance with their assessed priority in Group A. Martin Allen suggested the committee is verbally updated in more detail on individual schemes at future meetings. The Program Manager reminded Committee Members that no guarantee is given to Seed-funded Councils of receiving construction subsidy funding, and that all recipient Councils are advised in writing that construction subsidy funding is subject to whether there is any uncommitted balance in the Fund at the time. The Committee noted that Truro is an expensive scheme per connection, on the limit of Committee’s nominal criteria of cost per connection. That the CWMS Management Committee:

1. notes the Progress and Planned Expenditure Spreadsheets; and 2. endorses the indicative subsidy allocation of $2.26m to the Truro CWMS.

OTHER BUSINESS CW230614/5 Program Manager Services: Contract Tendering - Verbal Report by the Chair CW230614/5.1 Rick Gayler left the meeting at 2.45pm. The LGA CWMS Chair advised the committee that the LGA has developed a draft Procurement Policy and the Local Government Association will be tendering for the position of CWMS Program Manager. He advised an Request For Tender process will be undertaken and he is happy to accept input from the CWMS Committee and in particular in the tender evaluation process. The Chair advised the Program Managers current contract, due to expire end August 2014, has been extended 3 months and a handover period will be established if the incumbent is not successful, should they wish to tender for the new contract. Mark Goldstone advised he would like to view the tender evaluation criteria and the Chair agreed to circulate the draft document to the committee via email. That the CWMS Management Committee notes the verbal report.

RESOLVED

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Mark Goldstone left the meeting 2.54pm

Rick Gayler returned to the meeting at 2.54pm

The Chair advised he attended the Beachport opening of the CWMS scheme and was very impressed with the presentation by Council.

That the CWMS Management Committee notes the verbal report.

RESOLVED

ANY OTHER BUSINESS CW230614/8 Change in Water Regulations CW230614/8.1 The Committee discussed the Water Regulations that are set to change. Tony Farror advised it would most likely not be implemented for 1 to 2 years. Tony advised a national guideline was released in 2006 and adopted in 2008 and upgrading will need to happen for Council to comply. He also advised there would be a grace period for Councils to upgrade. The committee discussed the upgrade and endorsed it but agreed the State will need to assist with funding. The Committee discussed the Cowell submission and agreed to alert Council on the need to comply with current regulations, and that this will be eligible for inclusion in the subsidy calculation. The Committee discussed the need to look for cost effective measures and a contingency plan will need to be put in place, a new agreement will also need to be formed with State Government.

NEXT MEETING CW230614/9 Next regular meeting to be held at a day and time to be advised at Local Government House, 148 Frome Street, Adelaide.

CLOSE CW230614/10 The meeting was declared closed at 3.26pm.

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ECM 603835

MINUTES OF THE CWMS MANAGEMENT COMMITTEE MEETING HELD ON 31 JULY 2014 IN THE SPENCER GULF ROOM AT LOCAL

GOVERNMENT HOUSE, 148 FROME STREET, ADELAIDE AT 11.00AM

WELCOME, PRESENT & APOLOGIES The Committee agreed for the Program Manager to Chair the meeting in Andrew Haste's absence. The Acting Chair welcomed members to the meeting. Mr Richard Gayler Program Manager, GPE (Acting Chair) Mr Mark Goldstone City of Prospect Mr Martin Allen Department for Water Mr David Daminato Environment Protection Authority Mr Tony Farror SA Health Miss Vicky Newton Minutes Secretary, LGA Also in attendance Mr Michael Meachan GPE Mr Ian Fitzsimons GPE Apologies were noted from Mr Andrew Haste LGA Mr Russell Peate Mid Murray Council

DISCUSSION The Program Manager tabled 3 documents for the committee to discuss. He advised the committee that the SA Water Parity Pricing has now been changed significantly. The Standard Capital Contribution, which was a mandatory parameter in the Committee’s guidelines for subsidy calculations, no longer applies. A policy decision from Committee is required to decide how and when the new SA Water Pricing regime should apply, eg, for projects currently under construction, or only those for which Subsidy Funding Agreements have yet to be signed. As a minimum, the additional draw on the Fund is estimated at over $3 million. This will mean a significant shortfall in funding for the Group A projects of more than $8million ($4.8m before the change in pricing). The CWMS Committee noted the changes in SA Water changes and the effect on the CWMS Wastewater Program and resolved that the 2014/15 SA Water parity pricing be used for determination for subsidy amounts for any project which isn’t yet under construction.

RESOLVED

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ECM 603835

The CWMS Committee resolved to submit a report to the LGA Board seeking approval to start discussion with the Minister for Local Government.

RESOLVED The CWMS Committee queried how Council's will be notified and the Program Manager advised it will be done via the subsidy agreement / Offer & acceptance letter. The CWMS Committee also noted that a meeting with the Minister for Local Government is the first step towards requesting continuation of the Program beyond the ten‐year (current) Agreement, to allow for completion of the Group A projects, highlighting the prior achievements of the CWMS Program over the past 45 years.

The CWMS Committee noted Minister Tom Koutsantonis comments to the ESCOSA Report.

RESOLVED

The CWMS Committee noted the 2013/14 CWMS Funding Letter is still with State Government. Martin Allen advised he has been briefed and is now involved.

RESOLVED

Michael Meachan tabled a document received on the ESCOSA Enquiry of Pricing. The Program Manager advised the Bob Dunstone, from his office is preparing comments on potable water, to add to Michael’s comments on wastewater. The CWMS Committee discussed recommending to ESCOSA changing the terminology of land/property tenants. The CWMS Committee noted the tabled document and verbal updates from the Program Manager’s team and requests the Chair liaise with LGA Director Adam Grey on the issue.

RESOLVED

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ECM 610364

MINUTES OF THE SPECIAL CWMS MANAGEMENT COMMITTEE MEETING HELD ON 15 SEPTEMBER 2014 IN THE EYRE PENINSULA ROOM AT LOCAL

GOVERNMENT HOUSE, 148 FROME STREET, ADELAIDE AT 2.00PM

The meeting opened at 2.04pm.

WELCOME, PRESENT & APOLOGIES The Chair welcomed members to the meeting. Mr Andrew Haste Chair, LGA Mr Mark Goldstone City of Prospect Mr Russell Peate Mid Murray Council (via conference call) Mr David Daminato Environment Protection Authority Mr Tony Farror SA Health Miss Vicky Newton Minutes Secretary, LGA Apologies were noted from Mr Martin Allen Department for Water

DISCUSSION 2013/14 CWMS Funding The Chair advised the committee that a letter has been received from Minister Hunter’s Office confirming the funds for 2013/14 have been released and the appropriate Minister to receive the 2014/15 claim is yet to be determined. The Chair thanked previous CWMS Committee member Mr Michael Barry for his assistance in ensuring the outstanding letter was brought to the attention of the correct Minister. The CWMS Committee noted the letter received from Minister Hunter regarding the funding allocation for 2013/14.

RESOLVED

Cowell CWMS Tender The Chair tabled and spoke to the email received by the committee from the CWMS Program Manager regarding the Cowell CWMS Tender. The Chair highlighted the savings that have been made possible by the Program Managers direct intervention. The CWMS Committee endorses adjustment of the budget for Cowell CWMS to allow for up to $5.9M in total subsidy allocation to the project.

RESOLVED

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ECM 610364

CWMS Program Management Service The Chair advised that 6 complete tenders had been received in response to the call for CWMS Program Management services. The Chair advised the Committee that the Tender Evaluation Panel comprised of himself, Jacques Badenhorst, LGA Procurement and Kelvin Goldstone, Mid Murray Council. The Chair detailed the weighted criteria that were used to evaluate the tenders received. The chair moved that the CWMS Management Committee:

1. accepts the recommendation from the Tender Evaluation Panel in appointing Gayler Professional Services to undertake CWMS Program Management Service from 2014‐2017; and

2. delegates to the CMC Chairperson to work in conjunction with LGA policy to undertake contract negotiations.

RESOLVED

The Chair thanked the Committee for their support and assistance through the tendering process for the CWMS Program Management Service. Meeting closed at 2.22pm

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