item 7 melinda pavey mp - kempsey shire council pavey mp member for oxley electorate 10 july 2015 cr...

Melinda Pavey MP MEMBER FOR OXLEY ELECTORATE

10 July 2015

Cr E Campbell Mayor Kempsey Shire Council PO Box 3078 WEST KEMPSEY NSW 2440

Dear Cr Campbell,

Please find attached information regarding the application for funding of eligible projects under the Restart NSW program.

These being for the Bellbrook and Stuarts Point/Grassy Head sewerage schemes.

With best wishes.

Yours sincerely,

Melinda Pa Member for Our Ref: rii

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email [email protected] web www.melindapavey.com.au office 37 Elbow Street, West Kempsey NSW 2440 mail PO Box 3120, West Kempsey NSW 2440

ph 02 6562 6190 fax 02 6563 1355 1 3 melindapaveyMP I 4 OmelindapaveyMP

APPENDIX I Page 5918AUG2015

ITEM 7

itew The Hon Niall Blair MLC Jo Minister for Primary Industries

NSWMinister for Lands and Water GOVERNMENT

BN15/4211

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Mrs Melinda Pavey MP Member for Oxley 37 Elbow Street WEST KEMPSEY NSW 2440

Dear Mr avey

On 6 March 2015, the NSW Government announced $110 million in Restart NSW funding for regional infrastructure projects to go towards clearing a backlog of projects in country towns affected by ongoing water quality and sewerage problems. This Restart funding initiative is part of the $1.25 billion NSW Government Water Security for Regions program

The eligible projects to apply for Restart NSW funding as part of this initiative are those previously remaining in the Country Towns Water Supply and Sewerage Scheme, priorities 4 to 10, including the following projects in your electorate:

Bellbrook sewerage Long Flat Sewerage Stuarts Point/Grassy Head sewerage

Councils will now be invited to submit an application including an updated scope, cost estimate and information about the projects.

The Restart NSW Fund Guidelines are attached for your information. The guidelines and an application form are available from the Infrastructure NSW and NSW Office of Water websites. Applications close on 31 August 2015.

I have asked that Mr Stephen Palmer, NSW Office of Water, be available to assist Councils with their applications. Mr Palmer can be contacted at stephen.palmerdpi.nsw.qov.au or on 02 9842 8511.

You rsa i s i rely

2 JUL 2015

The Hon Niall Blair MLC Minister for Primary Industries Minister for Lands and Water

Ends.

Level 19, 52 Martin Place, Sydney NSW 2000 Phone: (61 2) 8574 7190 Fax: (61 2) 9339 5560 Email: [email protected]


ITEM 7

Restart NSW Water Security for Regions Regional Water and Waste Water Backlog Expression of Interest Guidelines

NSW The new t i s t Rtlirra7yffigidtu f l i e s

inSW Infrastructure New South Wales NOW state of

- - - Office o f Water business


ITEM 7

Water Security for Regions Regional Water and Waste Water Backlog Expression of Interest Guidelines INVITATION RESTART NSW FUND WHO MAY APPLY The NSW Government is inviting -appliudlions-forfunding ( Uril Restart NSW Fund fo r the Regional Wate r and Waste Water Backlog program. A tota l o f $110 mil l ion has been commi t ted t o del iver t h e water and waste water backlog projects.

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W a t e r S e r orRegkoreas veserva t iL , t h e 201445 S t e S.r..;dget This document provides guidelines f o r applicants f o r the allocation of t he $110 million in funding to eligible projects as well as an outline o f the process t o be undertaken f o r the assessment o f applications.

The Restart NSW Fund was set up The eligible projects have Lu iniprove ecoriorniL g rowL i l a rd been nominated b y the NSW product iv i ty in the State and, fo r that Government. purpose, to fund infrastructure projects The Regional Water a n d Waste Water - that will improve, in the case o f the Backlog projects w e r e ident i f ied as Water Security for Regions program, par t o f the Country Towns Water infrastructure required f o r the Supply and Sewerage Program economic competitiveness o f the State, (CTWSSP). including access t o water.

The eligible councils a n d wa te r utilities The Water Security fo r Regions are listed below. The el igible projects Program is t o assist the Government are listed on pages f i ve and six. t o mee t its targets fo r access to and

qual i ty o f potable water. The Regional Wate r and Waste Projects must demonstrate tha t they Water Backlog program is will produce a net economic benefi t managed by the N S W Office of and tha t they meet the objectives o f Water, as per the Country Towns the Program. Water Supply and Sewerage

IMPORTANT MILESTONE 31 August 2015 Expressions o f Interest close.

e councils and water utilities

• Bourke Shire Council

• Brewarrina Shire Council

• Cabonne Council

• Carrathool Shire Council

• Lachlan Shire Council

• Leeton Shire Council

• Liverpool Plains Shire Council

• MidCoast County Council

• Central Darling Shire Council • Mid-Western Regional • Clarence Valley Council

• Cobar Shire Council

• Coolamon Shire Council

• Cowra Shire Council

• Essential Water

• Eurobodalla Shire Council

• Griffith City Council

• Jerilderie Shire Council

• Kempsey Shire Council

Council

• Moree Plains Shire Council

• Murray Shire Council

• Murrumbidgee Shire Council

• Narrabri Shire Council

• Narrandera Shire Council

• Oberon Council

• Port Macquarie-Hastings Council

Program. Please contact: Stephen Palmer 02 9 8 4 2 8511

• Singleton Shire Council

• Tamworth Regional Council

• Upper Hunter Shire Council

• Uralla Shire Council

• Wagga Wagga City Council

• 1Nalgett Shire Council

• Warren Shire Council

• Warrumbungle Shire Council

• Weddin Shire Council

• Wellington Council

• Wentworth Shire Council

• Wingecarribee Shire Council

• Vass Valley Council


ITEM 7

Water Security for Regions Regional Water and Waste Water Backlog Expression of Interest Guidelines FREQUENTLY ASKED R e s t a r t p a r t f u n d i n g H o w w i l l p r o j e c t s b e assessed?

Q U E S T I O N S The Restart NSW Fund will only meet Infrastructure NSW w i l l c a r r y o u t an p a r t o f the capital cost o f the project. initial assessment w i t h assistance

he-w-at-er utIlit-rieeru nci I will-have t e from-t-he-N&/-ef-flee-of-Waterand A r e a l t e rna t i ve p r o j e c t s eligible f o r funding? The eligible projects were submitted b y Councils and included in the CTWSSP program some t ime ago. On ly water supply o r sewerage projects in these towns are eligible t o apply.

provide funding f o r the balance of t h e capital cost and all operations and maintenance costs. The maximum NSW Government contr ibut ion f r o m the Restart NSW Fund is calculated in accordance w i th the CTWSSP rules, which are described below.

In some cases, o ther investments have Step 1 since been made o r superior technical Calculate the "elgible backlog project solutions have been identified. If that cost", which is t he capital cost of is t h e case, the project may not be backlog infrastructure as at1996. required, may require a different amoun t o f funding o r a bet ter solution Step 2 should be submit ted for funding. The NSW Government contr ibut ion is Councils should contac t NSW Off ice then determined according t o the size o f Water to discuss proposed changes o f t he water utility: t o projects as soon as possible. • 50% o f the eligible backlog project

cost fo r small utilities (less than $10 million annual revenue)

• 20% o f the eligible backlog project cost f o r larger utilities (over $10 million annual revenue)

NSW Treasury. This assessment is a g a i n s t the Program Criteria below.

Projects will then be recommended to the NSW Government by Infrastructure NSW, following review b y the Regional Independent Assessment Panel, N S W Of f ice of Water and NSW Treasury. All proposals will need t o demonstrate how they meet the s t a t u t o r y purpose o f the Restart NSW Fund, wh ich is to improve economic g r o w t h and product iv i ty in the state. The Regional Water a n d Waste Water Qual i ty Backlog pro jects were identif ied as par t o f t h e Country Towns Water Supply a n d Sewerage Program. The focus wil l b e o n projects that ensure that t he t a r g e t quality, health and environmental standards are achieved. During the assessment process, Infrastructure NSW has t h e discretion to seek clarif ication o r additional information f rom an applicant.


ITEM 7

Water Security for Regions Regional Water and Waste Water Backlog Expression of Interest Guidelines P r o g r a m Cr i ter ia H o w c a n m y organ isa t ion apply?. o f NSW Off ice o f Water , there will be The projects will be assessed based on Councils should prepare an Expression a process f o r the documen ta t i on of t he Program Criteria listed below: o f Interest f o r each o f the eligible this advice and response t o enquiries

ojects. t o ensure tha t it is a lso m a d e available r 1 Strategic assessment on t h e NSW Office o f Water 's web site. During the assessment process, • The degree tha t the community Infrastructure NSW, acting alone C o n f i d e n t i a l i t y a n d Disclosure is af fected b y sub-standard water

o r f o r the Regional Independent and sewerage system condit ions Appl icants are advised t h a t any Assessment Panel, has the discretion (referring to the qual i ty and informat ion conta ined in the to seek clarif ication o r additional per formance against environmental appl icat ion which is considered information f rom an applicant. standards tha t applied in 1996) confidential must be notified There is a Benef i t Cost Ratio t o Infrastructure N S W w i th an 2 Economic Assessment spreadsheet t o be completed f o r explanation. Summary information

• Demonstrated capacity o f this the economic assessment p a r t o f abou t the project application, investment t o improve economic the application, including whether o r n o t the g rowth and product iv i ty in the Local The pro- fo rma fo r the rest o f the appl icat ion is successful, will be Government Area, the region and /o r Expression o f Interest is attached, posted on Infrastructure NSW's the NSW economy Council should address all t he w e b site and will be used in media

3 Affordability Program Criteria listed above, announcements unless you advise

• Af fordabi l i ty o f the project fo r In order t o ensure that consistent Infrastructure NSW t h a t you d o not

Council, taking into account the information is being provided t o all agree t o its publication.

l i fe-cycle cost impacts, the impact potential applicants, Infrastructure Al l information prov ided in the f o r users and allowing f o r on-going NSW will prov ide a briefing f o r appl ications will be d is t r ibuted to operat ing and maintenance requirements

4 Deliverability

• Demonstrated capaci ty t o deliver t he project th rough robust strategies fo r procurement, project management and risk management

applicants and will nominate one o the r government agencies to assist central po in t o f contact for enquiries, Infrastructure NSW in this assessment. being [email protected]. NSW Off ice ' Except as disclosed, Infrastructure o f Water may also provide local NSW will keep all information assistance i f required, confidential and secure. These Guidelines, the brief ing material A n y request made u n d e r the and all Questions and Answers dur ing Government Information (Public the appl icat ion per iod will b e available Access) A c t 2 0 0 9 fo r access to an on the Infrastructure NSW and NSW application, including information Off ice o f Water's w e b site. marked confidential, will be determined If there is a need f o r appl icants t o in accordance with the Act. discuss projects w i th the local offices

APPENDIX I 418AUG2015

ITEM 7

Water Security for Regions Regional Water and Waste Water Backlog Eligible Projects

Bourke Shire Council

• Bo' irke_Shire Council

Bourke Shire Council

Brevvarrina Shire Council

Cabonne Council

• Carrathool Shire Council

Carrathool Shire Council

Central Darling Shire CoUncil

Clarence Valley Council

Caber Shire Council

Coolamon Shire Council

Cowra Shire Council

Essential Water

Essential Water

Essential Water

Eurobodalla Shire Council





Griff i th City Council

Griff i th City Council•

Griff i th Ci ty Council

Jeri lderie Shire Council

•Kempsey Shire Council

Kempsey Shire Council

Lachlan Shire Council

Lachlan Shire Council

Leeton Shire Council

Liverpool Plains Shire Council

Liverpool Plains Shire Council

MidCoast County Council




Project

Bourke Sewerage Effluent Management

Bourke Water Supply—SludgeAa4agement

Bourke Water Supply Augmentation

Brewarrina Sewerage Effluent & Water Supply Sludge Management

Yeoval Water Supply

Hillston Sewerage

Carrathool Water Supply

Wh i te Cliffs Water Supply

Ulmarra Sewerage

Cobar Water Supply

Ardlethan Sewerage

Cowra Water Supply Sludge Management

Silverton Water Supply

Menindee Water Supply

Broken Hill Sewerage Effluent Management

Congo Sewerage

Nelligen Sewerage

Potato Point Sewerage

Mystery Bay Sewerage

Central Tilba Sewerage

Nericon Sewerage

Lake Wyangan Sewerage

Tharbogang Sewerage

Jerilderie Water Supply Augmentation

Bellbrook Sewerage

Stuarts Point/Grassy Head Sewerage

Lachlan Shire Sewerage Effluent Management

Tottenham Water Supply

Wamoon Sewerage

Wi l l ow Tree Sewerage

Wallabadah Sewerage

Stroud Road Sewerage

North A rm Cove Sewerage

Pindimar Sewerage

A l lwor th Sewerage


ITEM 7

Water Security for Regions Regional Water and Waste Water Backlog Eligible Projects

Ivl idtoast County Council Bundabah Sewerage

MidCoast County-Council N e r o - S e w e r a g e



Mid-Western Regional Council

Moree Plains Shire Council



Murray Shire Council

Murrumbidgee Shire Council

Narrabri Shire Council

Coombe Park Sewerage

Manning District Water Supply Stage 2c (Dam)

Charbon Sewerage

Ashley Water Supply

Biniguy Water Supply

Moree Water Supply Augmentation

E3unnaloo Water Supply

Darl ington Pt Water Supply

Wee Wee Sewerage

Narrandera Shire Council Narrandera Water Supply

Narrandera Shire Council Barellan Sewerage

Oberon Council Oberon Sewerage

Por t Macquarie-Hastings Council Comboyhe Sewerage

Port Macquarie-Hastings Council Long Flat Sewerage

Por t Macqbarie-Hastings Council. Telegraph Point Sewerage r - Singleton Shire Council Camberwell Water Supply

Singleton Shire Council Bulge Water Supply

Tamworth Regional Council Barraba Sewerage

Upper Hunter. Shire Council Cassilis Sewerage

Uralla Shire Council Bundarra Sewerage

Wagga Wagga City Council San Isidore Sewerage:

Walget t Shire Council Cumborah Water Supply

Warren Shire Council Warren Sewerage

Warrumbungle Shire Council Mendooran Sewerage

Warrumbungle Shire Council Dunedoo Sewerage

Warrumbungle Shire Council Coolah Sewerage

Warrumbungle Shire Council Coonabarabran.Sewerage Augmentation

Weddin Shire Council Grenfell Sewerage

Well ington Council Stuart Town Water Supply.-

, Wentwor th Shire Council Wentwor th Shire Sewerage Scheme

Wingecarr ibee Shire Council Yerrinbool Sewerage

Yass Valley Council Binalong Sewerage (Yass Villages)

Yass Valley Council Yass Water Supply - Treatment

Yass Valley Council Bowning Sewerage (Yass Villages)


ITEM 7

Water Security for Regions Water and Waste Water Backlog

Briefing of Applicants

31st July 2015


ITEM 7

Jenny Davis, Executive Director Infrastructure NSW

Chris Hanger, Department of Industry, Regional Development

Stephen Palmer, DPI Water

Wayne Green, Department of Premier & Cabinet

Introduction


ITEM 7

Probity Adviser

Page 3

Integrity and fairness in the process - all meetings are conducted in the presence of the Probity Advisor.

Any issues of a probity nature arising may be raised directly with the Probity Advisor.

Sarah Mullins, OCM

Slides will be made available to all councils

What is said at today’s presentation is for information only – if a participant wishes to rely on something they should confirm it in writing


ITEM 7

Todays Meeting

The purpose of todays meeting is to better inform you of the process

To better describe the material required

The objective is to contribute to the quality of detailed submissions

Today is not part of the assessment process

We ask everyone to keep discussions at todays meeting confidential

All questions and answers from todays session will be made available on the website

Page 4


ITEM 7

Background

39 eligible local water utilitites

Local water utilities are eligible applicants

$110 million available funds

… only if the applications meet assessment criteria

Page 5


ITEM 7

Principles – What is important

1. Country Towns Water Supply and Sewerage Program priorities

2. Affected community: the lack of water quality or sewerage services and standards

3. Alignment with Integrated Water Cycle Management Plan and regional water strategies and plans

4. Project planning, updated cost estimates

5. Affordability of the project and life-cycle cost impacts

Page 6


ITEM 7

1. Country Towns Water Supply and Sewerage Program

Project are the unfunded priorities

For equity, the same rules apply

The fund will meet a portion of the cost of the eligible 1996 backlog components of the project

The portion this cost depends on size of utility

50% for small, <$10m revenue

20% for larger, >$10m revenue

Page 7


ITEM 7

2. Affected Community – Severity of Water Quality

The Strategic Assessment Criteria focus

Is the project still required?

Is the severity of the local conditions the same?

Later investments?

Higher or lower population growth?

What has been the impact of continuing poor quality or lack of service


ITEM 7

3. Alignment with IWCM Plans

Is this clearly a continuing priority?

Well documented in plans and strategies?


ITEM 7

4. Project Plan and Updated Cost Estimates

Focus in the EOI stage is on the costs of the project;

Are any scope, technical options able to be resolved in time?

If yes, are you able to prepare cost estimates?

Be clear about the level of confidence


ITEM 7

5. Affordability and life-cycle costs

Council needs to consider its commitment to co-funding

EOI’s to be signed by General Managers

Be clear about the status at this time and steps to resolve the commitment


ITEM 7

More Questions?

DPI Water will discuss project technical issues with Councils over the EOI period

Infrastructure NSW will also accept questions which must be raised in writing to [email protected]

Please identify questions that you consider unique to your proposal and should remain confidential

Answers to questions will be in writing

Answers (other than confidential project information) will be shared with all applications

If INSW considers that it is not unique and confidential, you may withdraw the question

Please check that we are using the correct email address

Page 12


ITEM 7

mailto:[email protected]

Process Next steps

Expressions of Interest close 31 August 2015

DPI Water will undertake a review of all application material and provides advice to Infrastructure NSW

Regional Independent Assessment Panel reviews projects and makes recommendations to Infrastructure NSW

Infrastructure NSW submits its recommendations for the next stage to the Government

Next Stage will involve economic appraisals and project plans

Page 13


ITEM 7

Confidential Information

All information provided in the application may be distributed to other parties to assist Infrastructure NSW

Identify any information contained in the application which you consider confidential and provide reasons

Any request made under the Government Information (Public Access) Act 2009 for access to an application, including information marked ‘confidential’, will be determined in accordance with the Act

Page 14


ITEM 7

Restart NSW Regional Water and Waste Water Backlog

Question Answer

In relation to ‘Country Towns Water Supply and Sewerage Program’ rules for calculation of the backlog vs growth portions of the project costs, what if the population decreased for the proposed scheme?

If the population has gone down then the backlog component of costs would be the same proportion as originally calculated. Note that the Council contribution doesn’t become less than 50%

In relation to ‘Country Towns Water Supply and Sewerage Program’, The maximum amount that will be subsidized is being increased to there was a maximum subsidised connection cost which was $45,000per ET, to reflect inflation since 2004 when the $30,000 figure originally $30,000. Does this amount apply to the projects to be was introduced. funded in this program?

Does a project have to be delivered by a set date? There is no set timeframe at present. However, we would expect that high priority projects are expected to be finished in 5 years in normal

This question was asked in relation to ‘Project Plan and updated costs circumstances, and certainly to be completed in 10 years if there are estimates’ complex design or environmental issues.

A project is described in Council’s strategic plans as a priority commitment that is expected to be completed in 2022, subject to funding availability. Will that project be considered?

This question was asked in relation to ‘Project Plan and updated costs estimates’

Eligibility for this program is restricted to the 71 projects listed subject to demonstrated ongoing need. If a Council has other projects that it wishes to undertake in preference to the listed project, these will not be considered in this round, but information will be collected to enable a “B” list to be developed. In these cases, Councils should demonstrate that the project is needed and the benefits of bringing delivery forward in the EOI application. Explain what is happening in each town/village, and the funding challenges to Council. .


ITEM 7


If the EOI submissions are for more than $110 million, what is the likelihood of lower grant contributions being offered for each project?

Eligibility for this program is restricted to the 71 projects listed subject to demonstrated ongoing need. The likelihood of the fund being oversubscribed is small. However, if that is the case, the best projects that meet strategic and economic criteria will be selected. It is not proposed that grant amounts will be reduced to meet higher than anticipated demand for funds

Is it possible to get the list containing the ranking of these projects in 2004?

All projects are listed on the website. DPI Water to investigate whether the 2004 ranking is still available and relevant.

Does DPI Water have any further details about the projects in 2004? DPI Water only has limited details. Any Council which does not have a record of their submission to Country Towns Water Supply and Sewerage Program are encouraged to contact their DPI Water regional officer to discuss.

What is the timeline to announce the shortlisted projects? EOI close date is 31 August 2015. Infrastructure NSW expects to be able to make recommendations to the Government in mid-October for shortlisting. The Government will decide the shortlist and when to announce the shortlist and the timeframe for the submission of detailed applications.


ITEM 7


What kind of information about projects does INSW want to know at the EOI stage?

Please complete the Expression of Interest application form/template that is available on the web site. Please focus your answers on the five key issues that have been discussed today:

1. Strategic Assessment - demonstrate that the project is still needed

2. Consistency - demonstrate that the project is aligned to your local plans

3. Economic Assessment – demonstrate that the community is impacted and describe the impact and benefits

4. Affordability - demonstrate that the Council is committed to its funding obligation and that the rate impact has been considered.

5. Deliverability - what is the scope and current cost estimate, be clear about the status of cost estimates

Do Councils that have more than one project need a separate EOI for each projects?

Yes

The guidelines refer to a Benefit Cost Ratio spreadsheet to be completed for the economic assessment part of the application. Is this different to the application form/template on the website?

Yes the template on the website is the Expression of Interest application form.

Completion of the Benefit Cost Ratio spreadsheet is not required at the Expression of Interest Stage, it will be required in the Detailed Application stage.


ITEM 7


What are the factors in the application template? Application form asks for a response to 4 criteria. Please focus your answers on the 5 questions based on the presentation today at the debrief session. The five questions are listed above

If there is no confidentiality in the draft Benefit Cost Ratio spreadsheet, can you put it on the website?

Yes, this is a good suggestion to provide the draft for comment prior to finalization for the Detailed Application Stage

Will any preliminary costs incurred be included in the project costs? Yes

There was one project (Yass Dam) included in the 2004 prioritisation list. Because of the water security needs it has been upgraded and the project is already finished. Is this project eligible?

No, a completed project is not eligible.

If a project will be started before the end of this financial year, is it eligible for approval of funds?

If Council makes INSW aware of those projects, then it can be considered.


ITEM 7

item 7 melinda pavey mp - kempsey shire council pavey mp member for oxley electorate 10 july 2015 cr...

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