Strategic Planning for Water Supply Schemes

STRATEGIC PLANNING FOR WATER

SUPPLY SCHEMES

SEWERAGE DEVELOPMENT SERVICING PLAN

ITERIM UPDATE

PREPARED FOR

ORANGE CITY COUNCIL

NOVEMBER 2012

ST

SEW

STRATEGIC PLANNING FOR WATER SUPPLY SCHEMES

SEWERAGE DEVELOPMENT SERVICING PLAN

INTERIM UPDATE

PREPARED FOR:

ORANGE CITY COUNCIL

NOVEMBER 2012

POSTAL ADDRESS PO BOX 1963 ORANGE NSW 2800 LOCATION 154 PEISLEY STREET ORANGE NSW 2800 TELEPHONE 02 6393 5000 FACSIMILE 02 6393 5050 EMAIL [email protected] WEB SITE WWW.GEOLYSE.COM

mailto:[email protected]

STRATEGIC PLANNING FOR WATER SUPPLY SCHEMES SEWERAGE DEVELOPMENT SERVICING PLAN

ORANGE CITY COUNCIL

212266_REP_001A.DOCX

Report Title: Strategic Planning for Water Supply Schemes

Project: Sewerage Development Servicing Plan

Client: Orange City Council

Report Ref.: 212266_REP_001A.docx

Status: Final

Issued: 6 November 2012

Geolyse Pty Ltd and the authors responsible for the preparation and compilation of this report declare that we do not have, nor expect to have a beneficial interest in the study area of this project and will not benefit from any of the recommendations outlined in this report.

The preparation of this report has been in accordance with the project brief provided by the client and has relied upon the information, data and results provided or collected from the sources and under the conditions outlined in the report.

All information contained within this report is prepared for the exclusive use of Orange City Council to accompany this report for the land described herein and are not to be used for any other purpose or by any other person or entity. No reliance should be placed on the information contained in this report for any purposes apart from those stated therein.

Geolyse Pty Ltd accepts no responsibility for any loss, damage suffered or inconveniences arising from, any person or entity using the plans or information in this study for purposes other than those stated above.


ORANGE CITY COUNCIL


TABLE OF CONTENTS EXECUTIVE SUMMARY.............................................................................................. I

ABBREVIATIONS ....................................................................................................... II

INTRODUCTION ........................................................................................................ 1

1.1 BACKGROUND .................................................................................................................. 1 1.2 SCOPE ............................................................................................................................... 1 1.3 REPORT STRUCTURE ...................................................................................................... 1

METHODOLOGY ....................................................................................................... 2

2.1 WHAT ARE DEVELOPER CHARGES? ............................................................................. 2

2.1.1 THE CAPITAL CHARGE ..................................................................................... 2 2.1.2 THE REDUCTION AMOUNT .............................................................................. 2

2.2 SEWERAGE SYSTEM ....................................................................................................... 3

2.2.1 DESCRIPTION .................................................................................................... 3 2.2.2 GROWTH PROJECTIONS ................................................................................. 3

2.3 LAND USE INFORMATION ................................................................................................ 5 2.4 LEVELS OF SERVICE........................................................................................................ 5 2.5 EXISTING AND FUTURE SEWERAGE COMPONENTS .................................................. 5

2.5.1 EXISTING ASSETS............................................................................................. 5 2.5.2 FUTURE CAPITAL WORKS EXPENDITURE .................................................... 5 2.5.3 SYSTEM CAPACITY ........................................................................................... 6

DEVELOPER CHARGES CALCULATIONS ............................................................. 7

3.1 CALCULATED DEVELOPER CHARGE ............................................................................. 7

3.1.1 CAPITAL CHARGE ............................................................................................. 7 3.1.2 REDUCTION AMOUNT ...................................................................................... 7 3.1.3 CALCULATED DEVELOPER CHARGE ............................................................. 7

3.2 REVIEW .............................................................................................................................. 8 3.3 RETICULATION WORKS ................................................................................................... 8 3.4 ADOPTED DEVELOPER CHARGES ................................................................................. 8 3.5 SUPPORTING DOCUMENTS ............................................................................................ 8

REFERENCES ............................................................................................................ 9

DRAWINGS Drawing 212266_FIG01 – Sewerage Development Servicing Plan

APPENDICES APPENDIX A Sewerage Level of Service

APPENDIX B Capital Charge Calculation

APPENDIX C Capital Works Program

APPENDIX D Reduction Amount Calculations


ORANGE CITY COUNCIL


TABLES Table 2.1 – Orange sewerage major infrastructure................................................................................. 3 Table 2.2 – Orange sewerage DSP growth projections .......................................................................... 4 Table 2.3 – Sewerage system capacity .................................................................................................. 6


ORANGE CITY COUNCIL

PAGE I 212266_REP_001A.DOCX

Executive Summary

This document presents an interim update to Orange City Council’s Sewerage Developer Servicing Plan (DSP). The interim update only covers the Orange DSP area and does not include the Lucknow/Spring Hill service area. A full revision of the Sewerage DSP will be undertaken later in 2012 or early 2013 when new guidelines are expected to be released by the NSW Government. The full update will include the Lucknow/Spring Hill DSP area.

The area covered by this DSP is shown on Drawing 212266_FIG01.

The sewerage developer charge for the DSP area covered by this document is $4,498 per ET (in $21012/2013).

Developer charges relating to this DSP will be reviewed every 5 years. In the period between reviews, developer charges will be adjusted annually on 1 July on the basis of the movements in the CPI for Sydney in the preceding 12 months.

The developer shall be responsible for the full cost of design and construction of sewerage reticulation works within developments including subdivisions.


ORANGE CITY COUNCIL

PAGE II 212266_REP_001A.DOCX

ABBREVIATIONS

BAU Business as usual

D/S Downstream

DEUS Department of Energy, Utilities and Sustainability

DoP Department of Planning

DPWS Department of Public Works and Services

EA Emergency Authorisation issued under Section 22A of the Water Act 1912

ERP Estimated Residential Population

EP Equivalent Person

ET Equivalent Tenement

GL Gigalitre (1,000 megalitres)

ha Hectares

IWCM Integrated Water Cycle Management

kL Kilolitre (1,000 litres)

kWhr Kilowatt hour

L Litre (1,000 millilitres)

LGA Local Government Area

L/s Litres per second

LEP Local Environmental Plan

LWU Local Water Utility

m3/hr Cubic metres per hour

mL Millilitre

ML Megalitre (1 million litres or 1,000 kilolitres)

ML/day Megalitres per day

m Metre

mm Millimetres

NOW NSW Office of Water

NPV Net Present Value

OCC Orange City Council

pa Per annum

REF Review of Environmental Factors

STP Sewage Treatment Plant (works)

TBL Triple bottom line (environmental, social and economic)

TRB Typical Residential Bill

µg/L Micrograms per litre

U/S Upstream

UV Ultraviolet

WFP Water Filtration Plant

WWTP Wastewater Treatment Plant (or STP)


ORANGE CITY COUNCIL

PAGE 1 212266_REP_001A.DOCX

Introduction

1.1 BACKGROUND Section 64 of the Local Government Act, 1993 enables local water utilities (LWUs) to levy developer charges for water, sewerage and stormwater. A Development Servicing Plan (DSP) is a document that details the sewerage development charges to be levied on development areas utilising a LWU’s infrastructure.

The last review of sewerage developer charges was undertaken in 2009 (Worley Parsons, 2009) and resulted in a sewerage developer charge for the Orange DSP area of $3,410 (in $2007/08) per Equivalent Tenement (ET).

This value has been indexed by inflation each year and is currently $3,955 per ET.

The need to review the Sewerage DSP has been triggered by:

• an adjustment to the Orange sewerage DSP area to include development areas in Ploughmans Valley and the southern suburbs; and

• identification of additional capital works required to meet future system loads.

1.2 SCOPE This report presents results of an interim update of the Sewerage DSP and includes the Orange DSP area only. A full revision of the Sewerage DSP will be undertaken later in 2012 or early 2013 when new guidelines are expected to be released by the NSW Government. The full update will include the Lucknow/Spring Hill DSP area.

This DSP document has been prepared in accordance with the Developer Charges Guidelines for Water Supply, Sewerage and Stormwater (Department of Land and Water Conservation, 2002).

This DSP document supersedes any other requirements related to sewerage developer charges for the areas covered by this DSP. This document takes precedence over any of Council’s codes or policies where there are inconsistencies relating to sewerage developer charges.

1.3 REPORT STRUCTURE The DSP is presented in three sections:

• Section 1 provides the DSP background and scope;

• Section 2 outlines the calculation methodology and provides relevant background data; and

• Section 3 summarises the calculated developer charges for the Orange sewerage DSP area.

Technical and supporting information is attached as Appendices.


ORANGE CITY COUNCIL


Methodology

2.1 WHAT ARE DEVELOPER CHARGES? Developer charges are up-front charges levied to recover part of the infrastructure costs incurred in servicing new developments or additional/changes to existing development. Developer charges provide a source of funding for infrastructure required for new urban development.

Developer charges are calculated as follows:

Developer charge = Capital Charge - Reduction Amount (cost of providing asset) (cost recovered through annual bills)

The 2009 DSP (Worley Parsons, 2009) used the following methodology to calculate the sewerage developer charge:

• Capital Charge: Return on Investment (ROI) Factor; and

• Reduction Amount: NPV of Annual Charges.

The same methodology was used for this interim update.

2.1.1 THE CAPITAL CHARGE

The capital cost includes the cost of providing, extending or augmenting assets required, or likely to be required, to provide services to development areas. The capital cost per equivalent tenement (ET) is the value of relevant assets divided by the capacity of these assets (In ETs).

Relevant assets include existing and future assets required to support growth. The capital charge is calculated as follows:

Capital charge = Capital Cost - Return on Investment (ROI) Factor

The capacity of an asset is not fully utilised until sometime after the asset has been commissioned. The Return on Investment (ROI) factor is based on the cost of early investment and recovery of that cost over time. The ROI factor is dependent on the period of take-up of the asset capacity and the rate of return required for the asset.

The capital charge is calculated for each development service area.

2.1.2 THE REDUCTION AMOUNT

Orange City Council (OCC) has adopted the Net Present Value (NPV) of annual bills method for calculation of the reduction amount.

Developer charges cover the capital charge for servicing a development are less the net present value of the net income from annual charges for the development area. The reduction amount represents the NPV of net income (income less recurrent expenditure) from the development.


ORANGE CITY COUNCIL


2.2 SEWERAGE SYSTEM

2.2.1 DESCRIPTION

Orange City Council provides reticulated sewerage services to about 14,640 assessments (2009/10). The area serviced is shown on Drawing 212266_FIG01. Sewage is collected from this area through approximately 400 km of sewer mains and 11 major pump stations.

Sewage is collected and delivered to the Orange Sewage Treatment Plant (STP) which is located to the north-east of the city. The plant processes approximately 3,000 to 4,000 ML annually and has a capacity to service up to 60,000 equivalent persons (EP) with capacity to provide full treatment up to approximately 43.2 ML/day (500 L/s). The treatment plant has been in operation since 1919 with major upgrades undertaken in 1933, 1963, 1987 and 1988, and a refurbishment of the digester taking place in 2004.

Water is tertiary treated and includes biological nutrient removal, chemical dosing for phosphorous removal, and chlorination for disinfection of effluent. The process units utilised include: 2 step screens; an aerated grit chamber and classifier; 4 primary tanks; 4 trickling filters; anoxic tank and aeration tank (with surface aerators), 7 secondary clarifiers, chlorine tank and cascade, 2 storage tanks, dissolved air flotation (DAF) plant and sludge digester. Some aspects of the plant have been designed to provide for the ultimate capacity of Orange (120,000 EP) including the inlet works, control building, chlorination facilities and the trunk mains (WorleyParsons, 2009).

The majority of the treated effluent from the Orange STP is reused under an existing water supply agreement by Cadia Holdings Pty Limited for mineral processing. The agreement commenced in 1997 and is set to continue for the life of the mine. Data for the period 2001 to 2011 shows an average of 72% of the effluent produced over this period was transferred to Cadia Holdings Pty Limited. The annual transfer ranged from 28% to 94% and averaged 8.2 ML/day over this period.

The balance of the treated effluent is discharged under licence to Blackmans Swamp Creek.

Major sewerage infrastructure is listed in Table 2.1.

Table 2.1 – Orange sewerage major infrastructure

Component Quantity

Treatment plant 1

Pump stations 25

Pipes (km) 404

Access chambers 7,503

1 Source: IPWEA (2011)

2.2.2 GROWTH PROJECTIONS

Assessment growth projections for the interim sewerage DSP update have been adopted from analysis carried out for OCC’s Integrated Water Cycle Management (IWCM) Evaluation Study (Geolyse, 2012). Base line assessments in 2012/2013 are:

• Residential 14,860; and

• Non-residential 1,837.

An average growth rate of 0.8% pa was applied. This is the medium growth rate adopted in the IWCM Evaluation Study.

OCC has adopted the assumption that one residential assessment represents one ET and one non-residential assessment represents three ETs. Assessment and ET projections are shown in Table 2.2.


ORANGE CITY COUNCIL


Table 2.2 – Orange sewerage DSP growth projections

Year Assessments1 ETs

Residential Non-residential

Total Residential2 Non-residential3

Total

2011/2012 14742 1822 16564 14742 5466 20208

2012/2013 14860 1837 16697 14860 5510 20370

2013/2014 14979 1851 16830 14979 5554 20533

2014/2015 15099 1866 16965 15099 5598 20697

2015/2016 15219 1881 17100 15219 5643 20862

2016/2017 15341 1896 17237 15341 5688 21029

2017/2018 15464 1911 17375 15464 5734 21198

2018/2019 15588 1927 17514 15588 5780 21367

2019/2020 15712 1942 17654 15712 5826 21538

2020/2021 15838 1957 17795 15838 5872 21710

2021/2022 15965 1973 17938 15965 5919 21884

2022/2023 16092 1989 18081 16092 5967 22059

2023/2024 16221 2005 18226 16221 6014 22236

2024/2025 16351 2021 18372 16351 6063 22414

2025/2026 16482 2037 18519 16482 6111 22593

2026/2027 16614 2053 18667 16614 6160 22774

2027/2028 16747 2070 18816 16747 6209 22956

2028/2029 16881 2086 18967 16881 6259 23139

2029/2030 17016 2103 19119 17016 6309 23325

2030/2031 17152 2120 19271 17152 6359 23511

2031/2032 17289 2137 19426 17289 6410 23699

2032/2033 17427 2154 19581 17427 6462 23889

2033/2034 17567 2171 19738 17567 6513 24080

2034/2035 17707 2188 19896 17707 6565 24273

2035/2036 17849 2206 20055 17849 6618 24467

2036/2037 17992 2224 20215 17992 6671 24662

2037/2038 18136 2241 20377 18136 6724 24860

2038/2039 18281 2259 20540 18281 6778 25059

2039/2040 18427 2277 20704 18427 6832 25259

2040/2041 18574 2296 20870 18574 6887 25461

2041/2042 18723 2314 21037 18723 6942 25665

1 average growth 0.8% pa 2 one residential assessment = one ET 3 one non-residential assessment = 3 ETs


ORANGE CITY COUNCIL


2.3 LAND USE INFORMATION Land use information defining future development areas were adopted from the Orange Local Environmental Plan 2011.

Areas zoned for development over the next 30 years and the anticipated number of allotments are shown on Drawing 212266_FIG01. The total lots available are:

• Years 0 to 20 4,534; and

• Years 20 to 30 4,124.

This shows a total of 8,658 residential allotments are available in the land already zoned for development. This is more than sufficient to cater for the forecast growth of residential assessments over the 30 year planning period.

2.4 LEVELS OF SERVICE Orange City Council sewerage levels of service (LOS) and the proposed performance measures are summarised in Appendix A. The sewerage LOS are the targets that Council aims to achieve and do not represent a formal customer contract.

System design (including capital works) and operation are based on the LOS.

2.5 EXISTING AND FUTURE SEWERAGE COMPONENTS

2.5.1 EXISTING ASSETS

Data for existing assets were taken from the 2009 Sewerage DSP (WorleyParsons, 2009). The 2009 DSP obtained the existing asset information from OCC’s asset database. It includes all collection, transport, pumping and sewerage treatment works assets associated with the existing sewerage system. A list of the existing assets is provided in Appendix B.

2.5.2 FUTURE CAPITAL WORKS EXPENDITURE

OCC’s sewerage capital works program is included in Appendix C. These items are included in the capital charge calculation presented in Appendix B.

Capital works estimated at $85.87 million ($2012/2013) will be required over the next 30 years to provide sewerage services to the Orange DSP area comprising both new works and renewals as follows:

• Level of service works $20.041 million;

• New system assets $15.569 million; and

• Renewals $49.260 million.

The annual sewerage capital works expenditure is shown in Figure 1. The renewals expenditure is excluded from the capital charge calculation. Timing of works and expenditure will be reviewed in conjunction with the Management Plan.

A subsidised scheme refers to improved level of service to existing customers, regardless of whether a subsidy is available.

New system assets are those required to support growth.

Existing cash reserves were applied to some capital items as described in Section 3.


ORANGE CITY COUNCIL


Figure 1: Orange DSP capital works program

2.5.3 SYSTEM CAPACITY

The system capacity was adopted from the 2009 sewerage DSP (WorleyParsons, 2009) as shown in Table 2.3.

Table 2.3 – Sewerage system capacity

System component Overall capacity (ETs)

Sewage Treatment Plant (ultimate capacity 60,000 EP)1 24,000

Collection and transfer system 23,004

1 based on an EP/ET ratio of 2.5

0

1,000

2,000

3,000

4,000

5,000

6,000

2012

/201

3

2013

/201

4

2014

/201

5

2015

/201

6

2016

/201

7

2017

/201

8

2018

/201

9

2019

/202

0

2020

/202

1

2021

/202

2

2022

/202

3

2023

/202

4

2024

/202

5

2025

/202

6

2026

/202

7

2027

/202

8

2028

/202

9

2029

/203

0

2030

/203

1

2031

/203

2

2032

/203

3

2033

/203

4

2034

/203

5

2035

/203

6

2036

/203

7

2037

/203

8

2038

/203

9

2039

/204

0

Tota

l exp

endi

ture

(201

2/20

13 $

'000

)Total Subsidised scheme (ie. LOS) Total New System Assets Total Renewals


ORANGE CITY COUNCIL


Developer Charges Calculations

3.1 CALCULATED DEVELOPER CHARGE

3.1.1 CAPITAL CHARGE

The capital charge was calculated based on the existing and future assets and the ultimate capacity of each sewerage system component as outlined in the 2009 DSP (WorleyParsons, 2009) and described in Section 2.

Council currently has cash reserves in the sewer fund of around $8 million. The capital charge assumed the following capital works would be funded from these reserves:

Sewage Treatment Works

STP3: DAF upgrade $1,200,000 in 2013/2014

STP5: carbon dosing $845,000 in 2014/2015

Sewage Pump Stations

PV1: Sieben Drive pump station $1,000,000 in 2015/2016

PV3: West Ploughmans Valley PS $420,000 in 2012/2013

Rising Mains

SS1: Sewer main upgrade (Autumn St) $1,500,000 in 2016/2017

PV2: Ploughmans Valley Augmentation $500,000 in 2015/2016

PV4: West Ploughmans Valley main $180,000 in 2012/2013

The capital charge calculated from these assumptions is $5,662 per ET (in $21012/2013).

3.1.2 REDUCTION AMOUNT

The NPV of Annual Bills methodology was used to calculate the reduction amount (refer to Appendix D).

The reduction amount for OCC developer charges was calculated as $1,164 per ET (in $21012/2013).

3.1.3 CALCULATED DEVELOPER CHARGE

The calculated sewerage developer charge for the Orange DSP area is $4,498 per ET (in $21012/2013).

This is an increase of around $540 per ET (13.7%) above the existing sewerage developer charge.


ORANGE CITY COUNCIL


3.2 REVIEW Typically developer charges would be reviewed after a period of no more than 5 years. However if it is considered that a new DSP is warranted, a new DSP shall be prepared, exhibited and registered. That is the case for this interim update.

A full revision of the Sewerage DSP (including Lucknow/Spring Hill) will be undertaken later in 2012 or early 2013 when new guidelines are expected to be released by the NSW Government.

In the period between reviews, developer charges will be adjusted annually on 1 July on the basis of the movements in the CPI for Sydney in the preceding 12 months.

3.3 RETICULATION WORKS The developer shall be responsible for the full cost of design and construction of sewerage reticulation works within developments including subdivisions. The design and construction of the works shall be in accordance with Council’s development specifications for sewerage.

3.4 ADOPTED DEVELOPER CHARGES The adopted sewerage developer charge for the Orange DSP area is $4,498 per ET (in $21012/2013).

3.5 SUPPORTING DOCUMENTS The following supporting documents are attached as Appendices:

• Appendix A – OCC sewerage levels of service;

• Appendix B – Capital charge calculation. This document contains details information on existing and future capital items for the sewerage system. It details the timing and uptake of these works and the ROI factor;

• Appendix C – Sewerage capital works program that shows the type and timing of all capital works; and

• Appendix D – calculation of the reduction amount using the NPV method.


ORANGE CITY COUNCIL


References

Department of Land and Water Conservation (2002) Developer Charges Guidelines for Water Supply, Sewerage and Stormwater

Geolyse Pty Ltd (2012) Integrated Water Cycle Management Evaluation Study. Draft for NOW review. Orange City Council

The Institute of Public Works Engineering Australia (2011b) Sewer Asset Management Plan 2012-2022

Worley Parsons (2009) Orange City Council Development Servicing Plans for Sewerage, Sydney, 2000

Drawings

LEGEND:

CAPITAL WORK

NUMBER RESIDENTIAL LOTSAVAILABLE

EXISTING SEWAGE PUMP STATION

PROPOSED SEWAGE PUMP STATION

PROPOSED SEWER RISING MAIN

DSP BOUNDARY

AREA TO BE DEVELOPED 0-20YEARS

AREA TO BE DEVELOPED 20-30YEARS

PS

PS

PS

PS

PS

PS

PS

PS

PS

PS

PS

PS

PS

PS

4124

323

34

240

540

532

184

337

181

135

425450

904

PS

PS

SEWERAGE DEVELOPMENTSERVICING PLANORANGE CITY COUNCIL

ISSUE DATE: 06/11/12 212266_01A_FIG01

182

37

7

30

PSSS8

SS9

PSSS2

SS3

SS5

SS6

SS1

PV5

PSPV3 PV4 STP1-5

532

PV5

Appendix A SEWERAGE LEVEL OF SERVICE

ORANGE SEWERAGE LEVELS OF SERVICE

212266_Appendix A.docx Page 1

Table 1 – Sewerage LOS

Service Standard

Availability of Connection • Connections for domestic sewage should be provided to all houses, units or businesses within the defined service area.

• Acceptance of commercial and industrial wastes (trade waste) should be in accordance with approval conditions for each discharger.

Average System Failures • Controlled, expected (overflow structure) related to rainfall and design: - < 2 times in 1 year on average.

• Controlled, unexpected (flow relief structure): - < once in 5 years.

• Uncontrolled, unexpected: - Private Property: < once per 200 allotments per year. - Public Property: (sensitive areas): < once per 5 years. - Public Property: (elsewhere): < once per 10 km of main per year.

Response Times to System Faults

Response time defined as time to have staff on site to commence rectification of problem after notification by public or own staff. • Priority 1 – defined as major failure to contain sewage within the sewer system or

any problem affecting a critical user at a critical time - 1 hour (working hours) or - 2 hours (after hours)

• Priority 2 – defined as ‘minor failure to contain sewage within the sewer system or any problem affecting a critical user at a non-critical time’. - Response time 3 hours (working hours) or 4 hours (after hours)

• Priority 3 – defined as minor failure to contain sewage affecting a single property or as bad odours - Response time – next working day

Response Times to Customer Complaints & Inquiries of a General Nature

• Defined as a ‘minor operational problem, complaint, or inquiry, which can be dealt with at a time convenient to the customer and the local authority’ (e.g., adjustment of an access chamber or other non-critical structures bill inquiry).

• Response time defined as time to advise customer of intended action. Respond to 95% of written complaints or inquiries within 10 working days.

Odours Not more than 2 incidents per year that result in complaints.

Impact of Sewage Treatment Works on Surrounding Residents

The impact of treatment works on surrounding residents is generally due to noise and odour, both of which are subject to certain minimum standards set by statutory requirements and regulations. • The maximum level of noise should not be more than 5 dB above the background

noise level. • Odour should not be detectable outside Council’s buffer zone around the treatment

works.

Effluent Discharge / Biosolids Management

The minimum performance standards for effluent discharge and sludge management are set by statutory requirements and regulations through licensing.

Source: IPWEA (2011) Table 3.5

ORANGE SEWERAGE LEVELS OF SERVICE

212266_Appendix A.docx Page 2

Table 2 – Sewerage LOS performance measures

Key Performance Measure

Level of Service Performance Measure Performance Target

Environmental standards

Odour: Compliance with minimum standards set by statutory requirements and regulations.

Odour testing and analysis

Not more than 2 incidents per year that result in complaints. Odour at STP should not be detectable outside Council’s buffer zone around the treatment works

Biosolids management: Compliance with minimum performance standards for sludge management are set by statutory requirements and regulations through licensing

Biosolids testing and analysis

100% compliance

Effluent discharge: Compliance with EPA licence conditions

Effluent water quality testing and analysis

100% compliance

Noise Compliance with minimum standards set by statutory requirements and regulations.

The maximum level of noise should not be more than 5 dB above the background noise level.

100% compliance

System capacity Incidence of service malfunction

Frequency of system blockages

Less than 20 blockages annually per 100km of sewer main

Frequency of overflows affecting a single property

No property affected more than twice in 5 years

Reliability and capacity of pump stations

Number of pump station overflows

No more than 2 overflows per year during dry weather

Availability/reliability Minimal disruption to service due to: • Maintenance • Renewal activities • Breakages • Chokes

Planned disruption outage time

Not to last more than 2 hours

Number of unplanned disruptions

No property disrupted more than twice in 5 years nor last longer than 4 hours

Responsiveness Priority 1

Time to have staff on site to commence rectification of problem after notification by public or own staff

1 hour (working hours) or 2 hours (after hours) All response times for overflows to be high priority due to risk of contamination of stormwater harvesting water supply scheme and requirement to stop harvesting immediately

Priority 2 3 hours (working hours) or 4 hours (after hours)

Priority 3 Next working day

Overall customer satisfaction

Customer satisfaction with sewerage services

Percentage of customers rate their satisfaction with the sewerage services as ‘satisfied’ or ‘very satisfied’

90%

Source: Source: IPWEA (2011) Table 3.4

Appendix B CAPITAL CHARGE CALCULATION

Orange City Council Sewerage DSP - Capital Charge Calculation

Discount rate pre 1996 3%

Discount rate post 1996 7%

Calculated total capital charge (12/13 $'000) 133,676$

Total capital charge per ET (12/13 $'000) 5,662$

Orange Development Servicing Plan Area

Asset

Capital

Cost

(06/07 $'000)

Capital

Cost

(12/13 $'000)

Year

Dollars

Capital

Cost

(12/13 $'000)

Year

Commissioned

Effective Year

Commissioned

Present Value

(12/13 $'000)

Year of full

take-up

Years to full

take-up Discount Rate ROI Factor

Capital Charge +

ROI

(12/13 $'000)

Capacity

ETs

Capital Charge

(12/13 $'000)

SEWAGE TREATMENT WORKS

Existing (pre 1996)

STP I - preliminary, IDEA Tanks, sludge lagoons 14,132 16383 2012 16,383 1963 1996 16,383 2042 30 3% 1.49 24,345

STP II - preliminary, IDEA Tanks, sludge lagoons 17,206 19946 2012 19,946 1987 1996 19,946 2042 30 3% 1.49 29,640

Existing (post 1996)

STP III - nutrient removal 7,247 8401 2012 8,401 1997 1997 8,401 2042 30 7% 2.26 18,982

Future

STP3: DAF upgrade 0 2012 0 2013 2013 0 2042 30 7% 2.26 0

STP4: STP Optimisation 5,000 2012 5,000 2019 2019 5,000 2042 24 7% 1.96 9,778

STP5: Carbon dosing 0 2012 0 2014 2014 0 2042 29 7% 2.21 0

TOTAL SEWAGE TREATMENT WORKS 49,731 49,731 49,731 82,746 24,000 3.448

SEWAGE PUMP STATIONS

Existing (pre 1996)

Woodward Street 288 334 2012 334 1975 1975 334 2042 30 3% 1.49 496

March Road 412 478 2012 478 1992 1992 478 2042 30 3% 1.49 710

Mallee Place 288 334 2012 334 1995 1995 334 2042 30 3% 1.49 496

Tip 288 334 2012 334 1996 1996 334 2042 30 3% 1.49 496

Sophie Place 412 478 2012 478 1996 1996 478 2042 30 3% 1.49 710


Reece 137 159 2012 159 1997 1997 159 2042 30 7% 2.26 359

Phillip Street 343 398 2012 398 1998 1998 398 2042 30 7% 2.26 898

Careflight 137 159 2012 159 1999 1999 159 2042 30 7% 2.26 359

North Orange No 2 398 461 2012 461 1999 1999 461 2042 30 7% 2.26 1,042

North Orange No 1 439 509 2012 509 1999 1999 509 2042 30 7% 2.26 1,150

Airport 295 342 2012 342 2000 2000 342 2042 30 7% 2.26 773

Botanic Gardens 137 159 2012 159 2000 2000 159 2042 30 7% 2.26 359

Clinton Street 233 270 2012 270 2002 2002 270 2042 30 7% 2.26 610

Botanic Gardens café 233 270 2012 270 2003 2003 270 2042 30 7% 2.26 610

Gosling Creek House 137 159 2012 159 2003 2003 159 2042 30 7% 2.26 359

Gosling Creek Reserve 137 159 2012 159 2003 2003 159 2042 30 7% 2.26 359

Mitchell Hwy 137 159 2012 159 2004 2004 159 2042 30 7% 2.26 359

Wentworth 137 159 2012 159 2005 2005 159 2042 30 7% 2.26 359

Lake Canobolas 137 159 2012 159 2005 2005 159 2042 30 7% 2.26 359

Beer Rd 412 478 2012 478 2006 2006 478 2042 30 7% 2.26 1,079

Future

SS2: SPS (Land Unit 10) 1,150 2012 1,150 2017 2017 1,150 2042 26 7% 2.05 2,363

SS5: SPS (Land Unit 11) 575 2012 575 2025 2025 575 2043 19 7% 1.72 988

SS8: SPS 3 575 2012 575 2020 2020 575 2044 25 7% 2.00 1,153

PV1: Sieben Drive pump station 0 2012 0 2015 2015 0 2045 30 7% 2.26 0

PV3: West Ploughmans Valley area pump station 0 2012 0 2012 2012 0 2046 30 7% 2.26 0

TOTAL SEWAGE PUMP STATIONS 8,255 8,255 8,255 16,446 23,004 0.715

DSP_base-30 year.xlsx Capital Charge Page 1 of 3

Asset

Capital

Cost

(06/07 $'000)

Capital

Cost

(12/13 $'000)

Year

Dollars

Capital

Cost

(12/13 $'000)

Year

Commissioned

Effective Year

Commissioned

Present Value

(12/13 $'000)

Year of full

take-up

Years to full


Capital Charge +

ROI

(12/13 $'000)

Capacity

ETs

Capital Charge

(12/13 $'000)

SEWER MAINS

Existing (pre 1996)

Existing commissioned 1975 121 140 2012 140 1975 1975 140 2042 30 3% 1.49 208

Existing commissioned 1976 1,296 1,502 2012 1,502 1976 1976 1,502 2042 30 3% 1.49 2,233

Existing commissioned 1977 882 1,022 2012 1,022 1977 1977 1,022 2042 30 3% 1.49 1,519













Existing commissioned 1995 874 1,013 2012 1,013 1995 1995 1,013 2042 30 3% 1.49 1,506







Future

SS1: Sewer main upgrade (Autumn Street vicinity) 0 2012 0 2016 2016 0 2046 30 7% 2.26 0

SS3: Sewer Rising Main (Land Unit 10) 384.1 2012 384 2017 2017 384 2046 30 7% 2.26 868

SS6: Rising Main (Land Unit 11) 345 2012 345 2025 2025 345 2046 22 7% 1.86 641

SS9: Rising Main from SPS 3 345 2012 345 2020 2020 345 2046 27 7% 2.11 726

PV2: Ploughmans Valley Augmentation - Sewer mains upgrade 0 2012 0 2015 2015 0 2046 30 7% 2.26 0

PV4: West Ploughmans Valley area rising main 0 2012 0 2012 2012 0 2046 30 7% 2.26 0

Other minor new system assets 2012 85 2012 85 2012 2012 85 2046 30 7% 2.26 192























Asset

Capital

Cost

(06/07 $'000)

Capital

Cost

(12/13 $'000)

Year

Dollars

Capital

Cost

(12/13 $'000)

Year

Commissioned

Effective Year

Commissioned

Present Value

(12/13 $'000)

Year of full

take-up

Years to full


Capital Charge +

ROI

(12/13 $'000)

Capacity

ETs

Capital Charge

(12/13 $'000)









TOTAL SEWER MAINS 20,838 20,838 20,838 34,485 23,004 1.499


Appendix C CAPITAL WORKS PROGRAM

Sewerage Capital Works

ORANGE CITY COUNCIL SEWERAGE CAPITAL WORKS PROGRAM

Updated 25/09/2012 Type Of Works PV (@ 7%) Total

(Values in 12/13 $'000) LOS Future Work Renewals 2010/2011 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027 2027/2028 2028/2029 2029/2030 2030/2031 2031/2032 2032/2033 2033/2034 2034/2035 2035/2036 2036/2037 2037/2038 2038/2039 2039/2040 2040/2041 2041/2042

Southern Suburb Augmentation

SS1: Sewer main upgrade (Autumn Street vicinity) 100 1,144 1,500 1,500

SS2: SPS (Land Unit 10) 100 713 1,000 1,000

SS3: Sewer Rising Main (Land Unit 10) 100 238 334 334

SS4: Contingency (Land Unit 10) 100 143 200 200

SS5: SPS (Land Unit 11) 100 207 500 500

SS6: Rising Main (Land Unit 11) 100 124 300 300

SS7: Contingency (Land Unit 11) 100 50 120 120

SS8: SPS 3 100 291 500 500

SS9: Rising Main from SPS 3 100 175 300 300

SS10: Contingency SPS 3 100 70 120 120

Ploughmans Valley Augmentation

PV1: Sieben Drive pump station 100 816 1,000 1,000

PV2: Ploughmans Valley Augmentation - Sewer mains upgrade 100 408 500 500

PV3: West Ploughmans Valley area pump station 100 420 420 420

PV4: West Ploughmans Valley rising main 100 180 180 180

PV5: Land purchase for buffer at North Orange PS 100 300 300 300

STP Augmentation

STP1: Land Purchase 100 3,000 3,000 3,000

STP2: STP stormflow diversion/retention 100 2,910 5,000 5,000

STP3: DAF upgrade 100 1,121 1,200 1,200

STP4: STP Optimisation 100 2,404 5,000 2,500 2,500

STP5: Carbon dosing 100 790 845 845

Other Work

O1: Minor works 100 1,129 2,550 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85

O2: Vent removals 100 539 1,241 32 35 40 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

O3: Flow gauges/modelling 100 597 1,350 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45

O4: Environmental upgrades 100 2,656 6,000 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200 200

Renewals

R1: Sewer mains 100 9,294 21,000 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700

R2: Manholes 100 398 900 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30

R3: Orange STP 100 7,435 16,800 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560 560

R4: Sewage Pump Stations 100 1,859 4,200 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140

R5: Spring Hill STP 100 2,217 5,010 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167

Feasibility Studies/Modelling

M1: Feasibility Studies 100 1,992 4,500 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150 150

Total Subsidised scheme (ie. LOS) 11,397 20,041 3,682 385 390 392 392 392 392 392 5,392 392 392 392 392 392 392 392 392 392 392 392 392 392 392 392 392 392 392 392 392 392

Total New System Assets 10,372 16,569 685 1,285 930 1,585 1,585 1,619 85 2,585 1,005 85 85 85 85 1,005 85 85 2,585 85 85 85 85 85 85 85 85 85 85 85 85 85

Total Renewals 21,802 49,260 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642 1,642

CWP TOTAL 43,570 85,870 6,009 3,312 2,962 3,619 3,619 3,653 2,119 4,619 8,039 2,119 2,119 2,119 2,119 3,039 2,119 2,119 4,619 2,119 2,119 2,119 2,119 2,119 2,119 2,119 2,119 2,119 2,119 2,119 2,119 2,119

208103

Geolyse Pty Ltd

Page 1 of 1

DSP_base-30 year.xlsx

Appendix D REDUCTION AMOUNT CALCULATIONS

Orange City Council Sewerage DSP - Reduction Amount Calculation Annual Sewerage Bill 350 $ per ET

Annual growth rate 0.80% pa Annual Sewerage OMA 240 $ per ET

Net Income 110 $ per ET

Assessments ETs

Year Residential

Non-

residential Total Residential

Non-

residential Total

New ETs per

year PV (New ETs)

Cumulative

New ETs

Net Income

from New ETs

PV (Net

Income) from

new ETs

Reduction

Amount

($ per ET)

2011/2012 14742 1822 16564 14742 5466 20208

2012/2013 14860 1837 16697 14860 5510 20370 162 2172 162 18 2530 1164

2013/2014 14979 1851 16830 14979 5554 20533 163 325 36

2014/2015 15099 1866 16965 15099 5598 20697 164 489 54

2015/2016 15219 1881 17100 15219 5643 20862 166 654 72

2016/2017 15341 1896 17237 15341 5688 21029 167 821 90

2017/2018 15464 1911 17375 15464 5734 21198 168 990 109

2018/2019 15588 1927 17514 15588 5780 21367 170 1159 128

2019/2020 15712 1942 17654 15712 5826 21538 171 1330 146

2020/2021 15838 1957 17795 15838 5872 21710 172 1502 165

2021/2022 15965 1973 17938 15965 5919 21884 174 1676 185

2022/2023 16092 1989 18081 16092 5967 22059 175 1851 204

2023/2024 16221 2005 18226 16221 6014 22236 176 2028 223

2024/2025 16351 2021 18372 16351 6063 22414 178 2206 243

2025/2026 16482 2037 18519 16482 6111 22593 179 2385 263

2026/2027 16614 2053 18667 16614 6160 22774 181 2566 283

2027/2028 16747 2070 18816 16747 6209 22956 182 2748 303

2028/2029 16881 2086 18967 16881 6259 23139 184 2931 323

2029/2030 17016 2103 19119 17016 6309 23325 185 3117 343

2030/2031 17152 2120 19271 17152 6359 23511 187 3303 364

2031/2032 17289 2137 19426 17289 6410 23699 188 3491 385

2032/2033 17427 2154 19581 17427 6462 23889 190 3681 405

2033/2034 17567 2171 19738 17567 6513 24080 191 3872 426

2034/2035 17707 2188 19896 17707 6565 24273 193 4065 448

2035/2036 17849 2206 20055 17849 6618 24467 194 4259 469

2036/2037 17992 2224 20215 17992 6671 24662 196 4454 491

2037/2038 18136 2241 20377 18136 6724 24860 197 4652 512

2038/2039 18281 2259 20540 18281 6778 25059 199 4851 534

2039/2040 18427 2277 20704 18427 6832 25259 200 5051 556

2040/2041 18574 2296 20870 18574 6887 25461 202 5253 579

2041/2042 18723 2314 21037 18723 6942 25665 204 5457 601

DSP_base-30 year.xlsx Reduction Amount Page 1 of 1

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