Council Minutes 7th September 2009 40.1 Waste Water Reuse And Lease - Port Elliot Cwms (Confidential) File Ref: Officer (full name): From: Officers Consulted (full name): Strategic Plan Outcome Nbr: Budget Allocation: Chart of Account: Risk Assessment: ESD Impact/Benefit:* Environmental: * Social: * Economic: 9.24.1 GMES – Simon Grenfell Brook Turf – Malcolm Brook GMIP&D – Neville Styan, CWMS Coordinator – Craig Ostigh, DCE – Mike Shelley, GMFCS – Robyn Dunstall 3.3 $92,500 Budget Spent to Date: 813 Job Number: 813649 Nil – Improved use of natural resources Nil Capital investment with return on investment expected within 5 years REPORT Alexandrina Council CWMS plant at Port Elliot receives approximately 140 mega litres of effluent per annum. Council treats the effluent and reuses it in a variety of ways. These include reusing the water on parks and gardens and open space and for irrigation purposes on nearby farm land. To ensure that Council can dispose or reuse its surplus treated waste water in a sustainable and environmentally sensitive manner it is imperative that we have secure arrangements for its disposal. Brook Turf has approached Council to secure a Waste Water Reuse agreement for D Lindholm’s property at Port Elliot. Background Council for some time has disposed of excess effluent water from the CWMS plant at Port Elliot onto Mr D Lindholm’s property on Brickyard Road, Port Elliot. This has been done under a verbal agreement between Neville Styan and Dion Lindholm. This agreement is not binding and the Lindholm family has been reluctant to enter into any long term agreements with Council for they feel that it may jeopardise any future development potential the land has. …cont’d Council Minutes 7th September 2009 40.1 Waste Water Reuse And Lease - Port Elliot CWMS (Confidential) (continued) Council has recently invested funds to install two new waste water reuse schemes to irrigate Commodore Reserve and Continental Park in Port Elliot. Despite this there will still be excess waste water to dispose of. It is important to secure this site for additional disposal for if something was to happen to Mr Lindholm and we were not able to access the site we may have to find alternative locations for disposal. The most likely site would be the Port Elliot Primary School on Cameron Street. To install irrigation into the school oval could cost in excess of $200,000 if approval were granted by DECS. Risks RISK RESULT ACTION TO MITIGATE RISK Access to Lindholm’s property Settlement ponds at capacity Enter into a long term is not available for waste possibly a breach of EPA agreement with Brook Turf water disposal. licence. or Irrigate other open space within Port Elliot. Not enough water for irrigation Dissatisfied community Do not supply water to turf of open space or Port Elliot production. oval. Not enough treated waste Reduction in income from turf Properly manage use of water for turf production production. Longer payback treated waste water. period for capital investment. Options 1. Maintain the status quo. Council would still not have a secure site for disposal of waste water into the future. 2. Investigate and implement irrigation of other open space within Port Elliot. These options include the Port Elliot Primary School which would require DECS approval and possibly treatment of the water to a higher grade that what it is currently. Discussions have been held with Mr Steve Wright from Beyond about reusing the water in their stormwater lagoons but have been rejected due to EPA and Dept Health regulations. 3. Enter into a Waste Water reuse agreement with Brook Turf for the production of turf. The following points cover this option. …cont’d Council Minutes 7th September 2009 40.1 Waste Water Reuse And Lease - Port Elliot CWMS (Confidential) (continued) Option 3 – Waste Water Reuse Agreement with Brook Turf. Council currently have a Lease with Brook Turf for the production of turf on its land at Boettcher Road Middleton. Council also have Waste Water reuse agreements with the Strathalbyn Race Course and the Ness Family in Strathalbyn. To date these agreements have been working well with the Brook Turf lease set to return $100,000 to Council this coming financial year. Under the agreement Council would: Supply Brook Turf with surplus treated waste water to Lot 103 Brickyard Road Port Elliot. Be responsible for all pumping costs, Maintain and replacement of pumps Supply and install the irrigation equipment required at a cost of $45,000. Manage supply of waste water so that the requirements of all parties are met. Under the agreement Brook Turf would: Be responsible for lease payments to D. Lindholm Be responsible for the maintenance and renewal of the irrigation equipment Pay Council 15% of value of turf sold from the Port Elliot site minus the land lease payments. Initial estimates from Brook Turf regarding the return to Council indicate approximately $23,000 per year. This is based on 45 megalitres of water per year. The amount of excess waste water depends on demand and rainfall within the local area. Only excess waste water will be used for turf production with the priority being the irrigation of the Port Elliot Oval and parks and gardens. A detailed irrigation plan for the area will be developed once the subsurface irrigation in Commodore Reserve and Continental Park is complete. A detailed cash flow of the costs of the scheme was circulated and shows that the project will return a profit to Council in year 5. Council’s lawyers Norman Waterhouse who have prepared previous waste water reuse agreements have prepared an agreement which sets out each parties obligations under the agreement. ACF09409 Moved Cr Oliver seconded Cr Davis: 1) That Council make a budget amendment at the first 2009-2010 budget review to reflect the following amendments: a) CWMS Port Elliot Capital -$45,000 b) CWMS Port Elliot Operations -$7,250 …cont’d Council Minutes 7th September 2009 40.1 Waste Water Reuse And Lease - Port Elliot Cwms (Confidential) (continued) c) CWMS Port Elliot Maintenance -$2,000 d) CWMS Port Elliot Income -$2,000 2) That the Mayor and Chief Executive be endorsed to sign and seal the Waste Water Reuse agreement with Brook Turf. 3) That the report remain confidential for a period of twelve (12) months under Section 90 (3)(b)(i) of the Local Government Act 1999. 4) That the minute remain confidential for a period of twelve (12) months under Section 91(7)(b) of the Local Government Act 1999. 5) That Simon Grenfell be the responsible officer to review this item at the end of the confidential period. CARRIED