Urban Water Supply

Presentation to Community Consultation 17 January 2012

Session Agenda

Background Overview of urban schemes – towns &

villages Upgrade/renewal works completed Upgrade/renewal works – next 20 Years Options for change

Background - CSC Water Supply Network

•Largest in NSW •Supports human needs •Supports economy •All drinking water pumped from bores •Low number of customers – especially the villages •Extensive recent upgrades •CSC is a Local Water Utility - regulated •CSC consistently supplies safe drinking water to residents

Background – Water Supply Cost

Urban & Rural:

Actual 2008/09

Actual 2009/10

Actual 2010/11

Estimate 2011/12

Operation Expense 839,383 947,526 944,714 982,900

Capital Expense 533,141 185,016 163,584 605,000

TOTAL 1,372,524 1,132,542 1,108,298 1,587,900

Background - Operating costs

New electricity tender contains costs to 7%

Overview – Scheme Assets

Urban Water Supply Hillston Goolgowi/Merriwagga Carrathool

Bores/Water Source 3 2 2

Ancilliary 2

Generators/Telemetry 2 Generators/Telemetry 2 Generators/Telemetry Aerators 2 1 0

Water Mains 21Km 73Km 6.5Km

Water Pumping Stations 3 4 2

Water Reservoirs 2 9 2

Water Treatment Works 2 1 1

Est. Replacement Value (2007) $4,336,547.00 $8,243,983.00 $1,137,423.00

Total $13,717,953.00 Note: 2007 Valuation figures used

2011 Valuation in progress - values known to be higher than 2007

Urban Water Supply (20mm Connections)

HILLSTON GOOLGOWI MERRIWAGGA RANKINS SPRINGS CARRATHOOL

Customers Residential 357 114 25 19 20 Pensioners 100 16 9 18 12 Non Residential 58 29 5 10 4 Non Rateable 9 5 2 2

Total 524 164 39 49 38 Water Usage (kL) Potable -Residential 346 180 270 297 Potable - Pensioners 255 171 236 225 Potable - Non Residential 163 161 1019 354 Potable - Non Rateable 390 59 438 Raw - Residential 152 313 Raw - Pensioners 136 135 Raw - Non Residential 191 113 Raw - Non Rateable 1323 247

Average Bill (20mm Connection) Residential $509.13 $912.68 $850.74 $974.12 $805.82 Pensioner $349.45 $785.11 $731.74 $782.88 $639.43 Non Residential $374.93 $797.79 $1,427.01 $856.82 $868.53 Non Rateable $487.41 $1,445.48 $925.65 $956.80

Cost of operations Hillston

Hillston Water - Total Costs - Last 3 years

Scheme Actual

2008/09 Actual

2009/10 Actual

2010/11 Estimate 2011/12

Operational Costs $195,388 $222,162 $216,360 $238,000 Capital Costs $457,788 $70,077 $26,509 $252,000 TOTAL $653,176 $292,239 $242,869 $490,000

Asset Renewals & Capital projects Hillston

•New bore 4 & Aerodrome PS completed - $752,000 •WTW switchboard upgrade - $75,000 •WTW safety upgrade commenced - $20,000 •New bore 5 commenced – near completion - $150,000 •Commenced fire hydrant replacements - $10,000 •Upgrade radio telemetry •New radio telemetry & internet links Note: CSC successfully obtained $360,000 Drought Relief grant reimbursement 50% cost of Aerodrome PS

Cost of operations Goolgowi

Goolgowi Water - Total Costs - Last 3 years

Scheme Actual

2008/09 Actual

2009/10 Actual

2010/11 Estimate 2011/12

Operational Costs $310,545 $338,751 $353,362 $343,000 Capital Costs $58,840 $36,815 $37,677 $114,000 TOTAL $369,385 $375,566 $391,039 $457,000

Asset Renewals & Capital projects Goolgowi

•Palmyra PS major upgrade - $80,000 •Goolgowi Dam PS – raw water filtration •Goolgowi Dam PS – floating off-takes - $13,000 •Merriwagga aerator bird-proofed - $2,000 •Radio telemetery upgrades at multiple sites

Cost of operations Carrathool

Carrathool Water - Total Costs - Last 3 years

Scheme Actual

2008/09 Actual

2009/10 Actual

2010/11 Estimate 2011/12

Operational Costs $29,867 $48,108 $48,304 $34,350 Capital Costs $235 $10,644 $7,425 $15,000 TOTAL $30,102 $58,752 $55,729 $49,350

Asset Renewals & Capital projects Carrathool

•New bore 2 commissioned into service •New bore pump installed •Safety upgrade to disinfection system •Water conditioning (aerator) trialled •Leak sealing of village storage reservoirs •Installed radio telemetry at bore site •Commissioned new internet remote comms link

20 Year Forward Plan - First 5 years HILLSTON WATER 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 New Assets Hand held meter data logger 20 Hillston WTW remote quality sensing 5 Develop bore 5 150 Water quality(softening) investigation 5 Water softening Hillston WTW 50 Water softening Bore 4 40 Back up generator bore 5 50

Sub Total 180 50 40 0 0 50 Asset replacement Hillston Reservoir: int & ext condition assessment 10

Hillston WTW OH&S & facility upgrade 20 Hillston Reservoir :new ladder 30 Hydrant replacement 10 10 10 10 10 Mains replacement: AC: 118m: 12 12 Mains replacement: 200mm 20 Mains replacement: 150mm 68 Pump replacements Bore 2, 4, 5 , WTW –provision 8 8 3 3

Sub Total 97 50 81 10 13 0 Total Hillston 277 100 121 10 13 0

20 Year Forward Plan - First 5 years

GOOLGOWI / MERRIWAGGA WATER 2011/12

2012/13

2013/14

2014/15

2015/16

2016/17

New Assets Goolgowi:additional potable storage tanks 50 Merriwagga: Additional potable tanks potable: 75 Palintest water analyser 2 Remote water quality sensing: Langtree PS 8 Upgrade gas storage/detection : Langtree PS 5 Water softening: Merriwagga & Goolgowi 50

Sub Total 15 50 0 75 0 50 Asset Replacement Goolgowi: Hydrant replacements 3 3 3 3 3 3 Pump replacement – Langtree PS 15 Pump replacements - provision 4 4 4 4 4 4 Merriwagga: Hydrant replacement 3 3 3 Merriwagga: replace old aerator 75 Upgrade telemetry at Goolgowi Dam PS 3 Goolgowi: Reseal storage tanks 10

Sub Total 23 10 10 22 7 82 Total - Goolgowi 38 60 10 97 7 132

20 Year Forward Plan - First 5 years

CARRATHOOL WATER 2011/12

2012/13

2013/14

2014/15

2015/16

2016/17

New Assets Remote water quality sensing 5 New aerator 40 Water softening treatment 35

Sub Total 5 40 0 35 0 0 Replacement Asset Pump replacements - provision 2 2 2 2 2 2 Replace switchboard 35 Renew disinfection system 3

Sub Total 2 2 2 2 40 2 Total Carrathool 7 42 2 37 32 25

Note: Over the 5 year period $59,000 for communications & telemetry works common to all schemes

20 Year Forward Plan – Major items Yrs 6 - 20

Hillston 2022/23 Replace aerator at WTW $100,000 2028/29 Replace bore 2 90,000 2029/30 Mains replacements 100,000 Goolgowi 2020/21 Extend mains -east 45,000 2021/21 Extend mains – west 135,000 2022/23 Bore pump replacement 15,000 2025/26 Replace Langtree bore 100,000 2025/26 Renew mains Merriwagga 250,000

Carrathool No major planned renewals –mains replacements to commence 2040

Capital works – Urban & Rural

Schemes 2010/11 – 2014/15

2015/16 – 2019/20

2021/22 -2024/25

20025/26 – 2029/310 Total

Hillston 508,000 69,000 125,000 205,000 907,000

Goolgowi 583,000 177,000 765,000 417,000 1,942,000

Carrathool 88,000 51,000 10,000 10,000 159,000

Rankins Springs 929,000 187,000 447,000 41,000 1,604,000

Melbergen 572,000 130,000 51,000 20,000 773,000

20 year Total: $5,385,000

Proposed to use long-term loans to fund these works

End

Options for change

Community Consultation Urban Water Supply

17 January 2012

Options for change

1. Do nothing – keep things as they are 2. Consolidate urban schemes

Options for change 1. Do nothing – keep things as they are

$0.00

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

$1,600.00

Residential Pensioner Non Residential

Non Rateable

Hillston Goolgowi Merriwagga Rankins Springs Carrathool

Average Bill 20mm 2010-2011

Option 1:Do nothing – no change

•The gap between Hillston charges and all villages will increase even further •Funds raised in one scheme must be spent in that scheme •Smaller schemes unable to fund larger capital works e.g. potable water for Rankins Springs •Long pay-back periods for loans by small schemes with high interest cost •Village populations may decline as charges keep going up •Long-term sustainability of some schemes may be threatened

Option 2. Consolidate schemes Five separate schemes become one All customers receive the same benefit of water from

the tap All customer categories pay the same charges All customers share combined costs Monies raised can be directed to highest priority

works when required across the network Better ability to fund major capital works ( like mains

replacements) and better ability to repay loans from larger customer base

Simplifies administration Strong trend over last decade by water utilities and

councils to consolidate

END

Comparison CSC – Griffith CC – Goldenfields Water

CSC GWCC GCC Customers 1034 10500 9900

Length of Mains (Km) 480 1780 500

Staff (FTE) 8 58 33

Customers per Kilometre 2.2 6 20

Staff per Kilometre mains 0.02 0.033 0.7

Customers per staff 130 181 300

Comparison CSC – Griffth CC – Goldenfields Water CSC GWCC GCC

Residential 20mm 150/1.83 123/0.55/1.08 Residential 25 mm 234/1.83 192/0.55/108

Non-residential 20mm 206/1.74 Non-residential 25mm 321/1.74

Rural 20mm 257/1.64 Rural 25mm 402/1.64 Rural 50mm 1287/1.64 Rural 80mm