7 Victorian Desalination Project Community Liaison Group Minutes from Meeting Number 14 on 25 November 2010 Date: Thursday 25 November 2010 Location: Project Community Information Centre, Wonthaggi Present: John Nicol (Chair) Peter Sammut (DSE) Mandi Zonneveldt (DSE ‐ Secretary) Meeka Bailey (DSE) Chloe Munro (AquaSure) John Ridley (AquaSure) Steve Burns (Thiess Degrémont) Serena Middleton (Thiess Degrémont) Karen Lee (Thiess Degrémont) Neville Goodwin (Bass Coast Community Representative) Cr Peter Paul (Bass Coast Shire) Ian Anderson (Cardinia Community Representative) Sonia Rappell (City of Casey) Cameron Tonkin (Thiess Degrémont Nacap) Serena Middleton (Thiess Degrémont) Apologies: Cr Geoff Ablett (City of Casey) Cardinia Shire Council representative to be nominated Chris Herbert (AquaSure) Louisa McPhee (AquaSure) Meeting opened at 10.00am 1. Welcome / Introductions / Apologies The Chair welcomed everyone to the 14th Community Liaison Group (CLG) meeting. He thanked Thiess Degrémont for the use of the information centre. The Chair said the meeting would address the recent industrial matter during the Thiess Degrémont presentation. 2. Minutes of previous meeting Minutes adopted as drafted. 3. DSE update DSE General Manager Peter Sammut provided an update of the team’s activities. About 91 per cent of the 125 landowners subject to the pipeline and/or power supply easement have received advances or settled compensation. Mr Sammut noted recent media articles claiming some landowners were prepared to block access, however, this was retracted by the newspaper in a subsequent edition. Mr Sammut recognised the role of CLG community representatives in assisting to resolve landowner issues. Cr Peter Paul asked why the remaining 9 per cent did not take the option of an advance of compensation given that accepting the advance does not prejudice the final settlement 8 amount. Mr Sammut said generally these landowners had not provided DSE with a counter offer to compare with the compensation offer and noted that DSE paid for the legal and/or valuation advice in order for the landowner to do this. DSE has extended the statutory timeframes for landowners and their legal advisers to submit these claims. Mr Sammut said the Independent Reviewer and Environmental Auditor (IREA) was pleased with how environmental aspects of the project are being managed and asked whether CLG members would like another presentation from IREA auditor Zena Helman next year. CLG members agreed to this. The IREA’s November report had no non‐compliances. Areas for improvement related to provision of reports and verification of marine noise as well as some minor observations. Mr Sammut noted that the revised Environmental Management Plan (EMP) was on the AquaSure website. The EMP has developed further to ensure documentation reflects on ground practices. Mr Sammut said that while an auditor may know that on‐ground practices are correct, they must also be aligned with documentation. Mr Anderson asked how the project met IREA requirements while working in wet conditions on the pipeline and power easement. Mr Burns said Thiess Degrémont worked with the Environment Protection Authority (EPA) to ensure proper discharge of water and the IREA found the team was compliant with requirements of the EPA approved discharge plan. There were previous findings regarding sediment fencing which have been closed out. Mr Burns said the IREA audits were conducted regularly and were very thorough. Action: DSE to invite Zena Helman to present at a future meeting. Mr Sammut described the water quality requirements related to the project following media speculation about E.coli levels in Sydney Water reports. Mr Sammut explained the media reporting resulted from tests for E.coli in Sydney desalination plant water – labs no longer use 0 on reports but rather use less than 1 (< 1). A Sydney Water report failed to use the less than symbol (<), triggering media stories on E.coli levels which broadened to speculation on safety of source water for desalination and the impact of sewage outfalls. Mr Sammut said the Victorian Desalination Project must meet Australian Drinking Water Guidelines and Victorian Safe Drinking Water Act requirements as well as the Project Deed’s water quality parameters. Strict protocols and controls are involved. A lot of research was done on the location of the plant to ensure source water quality. Cr Paul advised he received calls from The Australian regarding this issue, however, his comments were not used. Mr Sammut said reverse osmosis experts state that even if E.coli is present in source water it would not occur at delivery because of the two pass reverse osmosis process and chlorination. Mr Sammut clarified the statement made at the previous CLG meeting regarding prosecution of people arrested for obstructing work on the pipeline. Mr Sammut said the DSE Legal Services’ prosecution team would determine whether charges would be pursued, rather than the DSE Secretary. The prosecutions unit deals with unlawful activity involving wildlife and parks as well as the Water Act. The decision to prosecute follows a set process that includes considering Department of Public Prosecutions guidelines. Cr Paul asked Mr Sammut to explain whether DSE is responsible for all prosecutions relating to the desalination plant. Mr Sammut said Victoria Police has a broader jurisdiction and can act in areas where DSE has no powers. DSE has narrower powers for specific circumstances (in this instance the Water Act). When DSE arrests using its powers it is responsible for the prosecution. When Victoria Police conducts arrests, it is responsible for prosecution. 9 4. Thiess Degrémont presentation Industrial issue Mr Burns made a statement regarding allegations that a security company (ASI) had been engaged to ‘spy’ on workers. Mr Burns said the allegations came as a complete shock to everyone on the project and everyone in the Thiess and Degrémont senior management. He stated that this is not the way that either company does business – it goes entirely against the ethics of both companies. Given the seriousness of these allegations, an immediate investigation was launched by the Thiess Chief Executive Australian Operations and using independent auditors, who worked around the clock to complete the investigation as quickly as possible. The investigation found no evidence of ASI conducting any form of covert electronic surveillance of any person and no evidence of breaches in respect of drugs, theft or inappropriate recruitment practices on the project, or any inappropriate conduct by the unions or their representatives. Mr Burns said that while everyone is relieved with these findings, Thiess and Degrémont senior management remain firm in their view that the engagement of ASI was inappropriate and should not have occurred. The investigation showed that this was a one‐off, isolated incident. The people involved in the decision to engage this company are no longer working on the project. Strong and decisive action has been taken to resolve this issue and restore trust and confidence on site. The Thiess Degrémont Joint Venture remains totally committed to the successful and timely completion of the project. Mr Goodwin asked if there had been much measure of the impact of this issue on the community. Ms Lee said the information centre had not had any questions, however, staff had comments from people they knew. Cr Paul said the incident had resurrected the privacy matter, the ramification being that an issue that was thought to have passed had been raised again. Cr Paul said the project needed to move forward from this negativity because it is part of the community, the workers are part of the community, and the matter should be addressed. Cr Paul said the council had been happy with relationship developed between it and the Project Director for Thiess Degrémont Joint Venture. Mr Anderson thanked DSE for sending information to ensure CLG members were advised. Mr Sammut noted that Supreme Court action related to the project was taken before the industrial issue occurred, and was unrelated to the industrial issue. He advised that a directions hearing would be held on 29 November. This would determine whether the action proceeded. Plant site update Ms Lee said 1900 workers are on site. The intake tunnel is nearly complete with just 40m to go. The outlet tunnel is around 40 per cent complete. There are now 40 dual media pressure filters in place. The seawater lift pump station is forming, with reinforcing steel inside the box cut. More than 11000m² of concrete will be used with walls 1m thick and 20m high. It will house 12 centrifugal pumps that can operate independently, being switched on or off, depending on capacity required. It will be underground, as part of the box cut backfill when the tunnels are completed. Mr Goodwin asked how the tunnelling and risers would connect. Mr Burns said the tunnel, riser and connection operations were independent operations and the riser could be completed before the tunnel. Ms Lee said structural steel and panels are going up for the reverse osmosis building. Inside the building, eight of the first‐pass reverse osmosis racks have been installed. From the jack‐ up‐barge, both intake bases have been installed and drilling and installation of the risers has also taken place. Mr Burns said the barge is expected to move from the intake area around Christmas. He said the 1 0 project is beginning to focus its planning on commissioning activities. The Chair asked if there was any truth to radio claims the project is four to five months behind schedule. Mr Burns said no. Pre‐commissioning is due to start early next year and Thiess Degrémont is confident the plant is on time for commissioning. Mr Sammut said construction programs have contingency built in, with the ability to manage resources and take opportunities to gain time. He advised that AquaSure’s revenue does not start until the project meets requirements. The Chair asked for a detailed site visit with access to more than one vantage point to be included in the February 25 meeting. Action: Thiess Degrémont to arrange February 24 site visit. Plant site update Cameron Tonkin commented on the discussion regarding project progress, noting that there are 23 separate crews working on the pipeline and power supply corridor. Power cable crews can work in wetter conditions because their equipment is lighter than pipeline crews. On the pipeline, Mr Tonkin said nearly 6000 pipes had been delivered to site. About half of the pipeline has been laid, although there is no “halfway point” as crews have worked in different areas. Work is about to start in Berwick at the Melbourne Water connection point. In terms of power supply, Mr Tonkin said conduit laying was well advanced and nearly 40km of cable installed. Use of a slip road to facilitate construction across the Bass Hwy started yesterday (24 November) with the Traffic Management Plan providing for construction to the end of the following week. Casey: Mr Tonkin reported that work had been done with the City of Casey for a Traffic Management Plan for Clairmont Ave to give access to Donnelly Reserve. Residents and the local school had been door knocked to provide advice. Cardinia: Residents on the easement at Main Drain Rd had been doorknocked regarding access for three houses with alternative access provided. There were few other issues in Cardinia Shire, however the team is conscious of dust control on haulage routes that are unsealed. Bass Coast: Turnbull Woolamai Rd and Stewart Rd are of particular note in this area with continuing pavement failure. Works were done last week with monitoring and repair to continue. Mr Tonkin described work at the Booster Pump Station in Cardinia, at the corner of Pound and McCormacks Rd. Construction is well underway, with footings going in. The building will house three pumps to provide greater flow and keep pressure on when flow capacity is greater than 100 gigalitres. The station houses three pumps, two primary and one standby, each weighing 20 tonnes. Combined they are capable of pumping 5000 litres per second. Community consultation on the Booster Pump Station design was undertaken about 6 – 8 months ago with local residents’ views incorporated into the current design, particularly in extending the mounding and including additional vegetation for visual amenity. Mr Goodwin asked for some further details. Mr Tonkin said the building is 8m high, 50m long and 30m wide. In response to a question from Ms Rappell, Mr Tonkin advised that consultation had taken place through Cardinia Township Committee, with City of Casey residents invited to take part, particularly residents of Pound Rd and McCormacks Rd. Feedback from Casey residents indicated that earth mounding on the McCormacks Rd side and vegetation fronting McCormacks Rd would assist visual amenity and provide a noise barrier. 1 1 Mr Sammut said the location had been moved from closer to Cardinia township to the Pound Rd site prior to work commencing on the project. Mr Anderson noted that part of the community’s concern was chemical dosing and transport of chemicals. Mr Sammut advised that the design had changed and that chlorine dosing was no longer part of the Booster Pump Station functions. The entire property has been purchased by DSE, with part leased to AquaSure for the Booster Pump Station. Use of the residual land is yet to be determined. Ms Rappell asked to be advised on decisions regarding the land. Action: Thiess Degrémont Nacap to present on the Booster Pump Station design at next meeting. 5. Community issues Mr Goodwin asked how buried pipe would be repaired if required. Mr Tonkin described the quality assurance process for the pipes. Each pipe is tested at the source of manufacturing and on delivery to site with specialised equipment used to read the condition of the pipe. The next quality check comes with welding to ensure it is to specification and devoid of faults, such as gaps and cracks and secure for the pipe’s 100 year design life. The weld is tested inside and out using pressure tests. Hydro and commissioning testing are then conducted to test the pipe under maximum water pressure. If a problem did occur and repair was required, sections could be isolated by draining water away and earthworks conducted to access the pipe. Mr Goodwin requested an update on the Bass River pipe jack. Mr Tonkin explained that the tunnel boring machine hit a dead tree creating a column in the base of the river which caused water to trickle into the tunnel. There had been no structural failure or geological collapse. Work was progressing well with a crane pad now in place. With appropriate approvals in place, the area is being isolated for repair, with the river flow being maintained via temporary pipes on the river bed while the leak is capped off and closed over. Mr Goodwin asked if a particular Bass Coast landowner’s concerns had been addressed. Mr Tonkin said the landowner’s advisors had indicated they were happy with the research conducted and construction methodology provided and had commented that the effort to date had been very thorough and had gone beyond general requirements. Mr Goodwin encouraged Thiess Degrémont to look more closely at Stewart and Turnbull Woolamai roads, noting that road maintenance on Stewart Rd had not worked and gravel was now needed and that Turnbull Woolamai Rd was in an unsatisfactory condition. He said Eden Rd and other roads around Glen Forbes were standing up well. Mr Goodwin said his involvement with the project had been rewarding and constructive, particularly as issues had matured over time with outcomes delivered to communities. He thanked CLG members for their support. Cr Paul discussed his recent comments regarding his call for a review of Westernport Water and its place in local water management, particularly for guaranteeing supplies for Philip Island. The Chair thanked Cr Paul for his participation in CLG as Mayor for the past 12 months. Ms Rappell said there were no issues from the City of Casey. Mr Anderson said there were no community issues from Cardinia and asked how pipe corrosion was dealt with. Mr Sammut said cathodic protection system was in place. Mr Anderson asked how ocean turbidity impacted water quality and operations. Mr Burns said a key design feature was 1 2 location of the intake structures 4m above the seabed, a level where there is not likely to be any impact from movement of sand and sediment. Tests conducted on water column turbidity by the State and AquaSure over the past two years shows there is no indication of conditions that would require the plant to stop operations. Mr Sammut added that the dual media pressure filters are robust and proven in areas with difficult feedwater quality. Mr Burns said the local ocean water is some of the best available, with Degrémont commenting that it was among the best that they had dealt with in the world. 6. Other business Ms Zonneveldt asked members to raise topics of interest in order to set agendas and guest speakers for meetings in 2011. The Chair confirmed the request for a site inspection on 25 February and Mr Burns offered to organise a presentation on commissioning in March. Action: Thiess Degrémont to organise commissioning presentation in March 2011. The Chair thanked CLG members for their work in 2010 and offered his compliments for the upcoming Christmas season. Cr Paul thanked Mr Nicol for his chairmanship. Meeting closed 11.55am 7. Next meeting To be held on Thursday 20 January 2011 at the City of Casey.