Board Meeting: 3 - 4 September 2012 Agenda Number: 11 (v) File Reference: EV0016 LORD HOWE ISLAND BOARD Business Paper Issue: Lord Howe Island Wastewater Update. Background: At its May 2008 meeting the Board recognised that septic tank effluent represents a threat to public health and the Island’s World Heritage values. The Board agreed to have all septic tanks removed or upgraded within the next 5 years. During 2009 and 2010 the LHIWMC worked with consultant Worley Parsons to produce a Wastewater Management Strategy Document. In March 2011 the LHIB administration undertook Community Consultation on the preferred options identified in the strategy document with the intention of identifying the community preferred option. The results of the community consultation were presented to the Board at the May 2011 Board meeting. At the May 2011 Board meeting the Board agreed to the following recommendations: 1. That the LHIB accept the community preferred option of an on-site wastewater management strategy for the island. 2. That LHIB Administration undertakes more studies to determine the appropriate effluent quality requirements to be met by these on-site systems. These studies will include: a. Nutrient balancing of island soils to determine the capacity of the soils to accept wastewater; and b. Consultation with Government agencies on requirements for environmental protection. 3. That LHIB investigate proprietary onsite systems that are suitable for dwellings of up to 10 people, including: a. an analysis of what proprietary systems are on the market and what effluent quality they can achieve; b. Cost analysis of various systems based on them meeting these quality standards including life cycle costing; c. Maintenance and operating procedures; and d. Island resources to undertake the maintenance of these systems including training requirements. 4. That LHIB undertake more community consultation to ensure community understanding and support to determine: a. What are the wastewater effluent quality standards to be met by on-site systems? b. Given the wastewater quality standards is there a requirement for a reticulated effluent disposal system? c. How does the community fund any community infrastructure? d. How do leaseholders pay for the upgrades of their systems? 5. LHIB Administration determines any fees and charges to be applied to leaseholders including any penalties for non-complying systems. 6. After completion of the studies and the community consultation LHIB Administration revise the LHI Wastewater Strategy to: a. Identify the effluent quality requirements to be achieved by on-site systems; b. Identify some LHIB preferred proprietary systems that meet the effluent quality requirements; c. Detail the monitoring and testing requirements of the systems; d. Systems servicing more than 10 people (lodges, clusters) need to be design by an appropriately qualified system designer and that the systems are designed to meet the required quality standards 7. That after determination of the wastewater quality requirements, the LHIB Administration write to all leaseholders advising them of the required effluent quality requirements and the time frame for their system to be upgraded to meet this requirement. 8. That the timeframe for upgrading of all systems to meet the requirements of the revised Wastewater Management Strategy remain as June 2013. This date may be reviewed if it is determined that a reticulated effluent disposal system is required. Since the May 2011 Board meeting, the LHIB administration has produced a draft revised Onsite Wastewater Strategy. In March 2012 the LHI Board endorsed this document for consultation purposes. During May 2012 the LHIB Administration issued the draft strategy for community consultation. Every leaseholder was sent a copy of the draft strategy with a coving letter inviting feedback. On 8 June 2012 the consultation period was closed. The LHIB received only 2 written submissions. The LHIB Administration considered the submissions received and prepared a summary of these submissions as well as the LHIB Administration response to the comments. This summary is attached to this paper. Following the consultation process the LHIB Administration made minor modifications to the draft Strategy resulting in a final draft document. A copy of this final draft document is attached for LHI Board review and approval. Subject to LHI Board approval of the final strategy document, the LHIB will write to all leaseholders advising them of the new strategy and their obligations to upgrade their systems to meet the strategy requirements. In addition to the consultation process on the draft strategy the LHIB Administration has over the last few months been undertaking additional works to assist the community with the implementation of the new strategy. As reported in the March 2012 Board update, the LHIB needs to take a leading role in guiding the procurement and selection of wastewater systems. This will assist leaseholders in selecting appropriate systems that achieve the necessary standards. The LHIB Administration will produce site specific design controls that will be available to leaseholders to use when procuring a new system. The LHIB Administration is also developing mapping to help define design parameters for individual on-site systems. This information that will be developed includes updated mapping of: Lease boundaries and building footprints; Site constraints – water courses, wells, significant native vegetation, endangered species habitat areas, flood prone land; Soil types including hydraulic capacity and nutrient sorption capacity; and possible irrigation areas. This work should be complete by December 2012. A separate budget adjustment paper has been submitted to cover the costs of this additional work. The LHIB Administration plans to undertake further community awareness and education activities on the proposed wastewater management strategy subject to the LHI Board approval of the final strategy. In addition to the above activities the LHIB Administration will commence work on a fees and charges regime that will be implemented as at the start of the 2013/14 financial year. The development of the fees and charges will consider the costs of systems, maintenance and monitoring requirements . Program status The date of 2013 for the upgrade of all septic systems is still current. The strategy identifies septic systems as high risk systems and as such a licence to operate valid for 12 months will be issued to those leaseholders requiring them to be upgraded by end 2013. All existing systems will be assessed for risk and Leaseholders notified. Systems will be assessed against the criteria in the risk strategy. All systems will initially be assessed as either high or medium risk until such a time as the leaseholder can demonstrate that the system complies with the requirements of the strategy. Systems identified as medium risk under the strategy will be issued a licence to operate a wastewater system for a period of up to 3 years in order to upgrade their systems to comply with the Wastewater management strategy. All systems will be assessed as part of the annual inspection process (Sept/Oct) and issued a “Licence to operate” (12 month for High Risk or 3 years for Medium Risk) by December 2012. The following program summarises the status of the Wastewater Upgrade program: December 2011 September 2012 December 2011 Current status Complete March 2012 March 2012 complete Activity March 2012 Identification of Preliminary Wastewater Quality requirements and preferred proprietary systems Finalisation of Wastewater Quality Requirements Draft wastewater strategy for LHI Board consideration Community consultation March 2012 March 2012 complete April/May 2012 May/June 2012 September 2012 September 2012 December 2012 End 2013 End 2015 complete LHIB approval of revised Wastewater Strategy Letters sent to Leaseholders re upgrade of systems Site design controls May 2012 Upgrade of all septic systems (High risk) Upgrade of balance of systems (medium risk) End 2013 End 2015 June 2012 active active active active active Recommendation: That the Board: 1. Note the community consultation submissions and LHIB response; and 2. Approve the final LHI On-site Sewage Management Strategy. Prepared By: Nicholas Holt Manager Infrastructure and Engineering Services Endorsed By: Stephen Wills Chief Executive Officer