mccc agenda - southern rural water · mccc agenda meeting no. 163. 10.00am, tuesday 24 april, 2018...

M C C C A G E N D AMeeting no. 163

10.00am, Tuesday 24 April, 2018 SRW Maffra Office88 Johnson Street, MAFFRA

We acknowledge the Gunaikurnai people, Traditional Owners of this land on which we meet and we pay our respects to their

Elders past and present.

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Our Vision – Boosting Southern Victoria’s food, fibre and regional productivity through outstanding rural water management

Our Goals

For customers

• Great service

• Affordable prices

• More water for production

• Adaptive, efficient and sustainable irrigation districts

For us

• Safe and healthy workplace

• High performing staff

• Financially strong

For all • Environmentally responsible

• Strong relationships

• Safe dams

• Sustainable water systems

Trademark Behaviours

• United

• Customer first

• Ambitious

• Results driven

• Energetic

• Respect

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1 PROGRAM TIME

OPENING 10:00

2 Welcome and apologies

3 Declaration of conflicts of interest

4 Confirmation of minutes – Meeting 162

4.1 Macalister Customer Consultative Committee, Meeting 162 Draft Minutes

5 Business arising from previous meetings

FOR DISCUSSION

6 PRINCIPAL MATTERS

6.1 Chairperson’s report

6.2 Matters referred from the board

6.3 Manager Water Supply East update

6.4 Water trading video

6.5 WaterBid update

6.6 MID dry conditions

6.7 MID2030 update

6.8 Feedback register (relevant to MID)

7. GENERAL BUSINESS

8. FOR NOTING

8.1 Incoming correspondence

8.2 Outgoing correspondence

8.3 Communications report

9 Meeting evaluation

10 Next meeting

MCCC Meeting No. 163 – Tuesday 24 April, 2018

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2. WELCOME AND APOLOGIES; AGENDA LISTING

3. DECLARATION OF CONFLICTS OF INTEREST

4. CONFIRMATION OF MINUTES

RECOMMENDATION

That the committee approves the minutes of the meeting held on Tuesday 27 February, 2018

REPORT

Draft minutes of the MCCC meeting held at Southern Rural Water Maffra office on Tuesday 27 February, 2018, are attached at 4.1.


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4.1 ATTACHMENT 1: CONFIRMATION OF MINUTES – MEETING 162

MACALISTER CUSTOMER CONSULTATIVE COMMITTEE

DRAFT MINUTES of MEETING 162 Held 10.00 a.m. Tuesday 27 February, 2018

At Southern Rural Water, 88 Johnson Street, Maffra PRESENT Mr B Missen (Chair) Mr G Anderson OAM Mr J Forsyth Mrs R Hanratty Mr N Drew

Mr A Clyne Mr S Dwyer Mr J Scicluna Mr M Sellen Mr D Read SRW Representatives Mr T Clapham, Manager Water Supply East Mr G Prior, Operations Supervisor MID Ms Renae Cooke, Executive Services Mr Angus Hume, SRW board APOLOGY Mrs J Howie

2. WELCOME AND APOLOGIES; AGENDA LISTING

A formal apology was received from Jeannette Howie.

3. DECLARATION OF CONFLICTS OF INTEREST

No new conflicts were declared. 4. CONFIRMATION OF MINUTES

That the Committee approved the minutes of the meeting held on Tuesday 19 December 2017 with an amendment to Jim Forsyth’s attendance. Moved: Graeme Anderson Seconded: Steve Dwyer


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5. BUSINESS ARISING FROM PREVIOUS MEETINGS

Nil.

6. PRINCIPAL MATTERS

6.1 CHAIRPERSON’S REPORT

Mr Missen noted the most recent GippsDairy meeting was held at the SRW office and included a presentation from Mr Clapham and a tour of the MID. Great feedback was received from the GippsDairy board about the facilities and the SRW staff.

6.2 MATTERS REFERRED FROM THE BOARD

No items were referred from the Board.

6.3 MANAGER WATER SUPPLY EAST UPDATE

Mr Clapham provided an update, including: Online allocation auctions

We have had three auctions so far this season and all have been successful. Customers across the district are having conversations about water and pricing, so the website is certainly delivering on keeping trading fresh in their minds. No other water corporation does this but some are now making enquiries to try something similar. The next step is getting customers to trade their own water on WaterBid. Anecdotal feedback indicates this is something they are very keen to see happen. ACTION: Mr Prior to bring proposal for customers to trade on WaterBid to April meeting (Prior) MCCC recruitment

We currently have six vacancies – four existing committee members are up for re-election and two vacant seats. Advertising on our website, in the local paper and on social media will commence shortly. Mr Clapham noted that recommendations for appointment will go to the board in June. Main siphon

Repairs have been carried out as per the consultant’s recommendations, with further works currently up for funding for the 2018/19 financial year. Wayne Fleming has moved into a dedicated asset management role and will also be providing a strategic plan for Lifeblood works. We have approval through the Pricing Submission for $80k per annum to be spent on Lifeblood. Water share auction

The auction will be held in the SRW office at 11am tomorrow. We currently have 3-4 registered bidders It was noted that some customers may be waiting to see if low


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reliability is allocated instead of buying water. There are 77 days left of the irrigation season and customers need to know as soon as possible if low will be available. There is 5,700ML left to pay back the Thomson before we can allocate – this will be noted in next week’s weekly snapshot.

ACTION: investigate an indicator in the weekly snapshot and potentially a text message that gives people an idea of how we are tracking with low reliability (Clapham) Water Supply East has traditionally had a predominantly male workforce with only one female until recently. SRW is actively encouraging more diversity as an organization and we now have four females in the workgroup.

6.4 TRANSFER OF WCSC FUNCTIONS

Mr Clapham spoke to the paper, including: There will be a formal induction process and the two committee charters will be integrated into one to cover both areas. We could potentially have a joint meeting as part of the process. Becky Van Baalen will join the MCCC meetings on a regular basis for the salinity discussions. The reports are currently set up for how committee used to run before SRW managed the program and therefore can be streamlined considerably for MCCC consumption. This should not add considerably to any meeting.

MOTION: That the Wellington Community Salinity Committee be dissolved and the functions be integrated into MCCC meetings MOVED: Steve Dwyer SECONDED: Norm Drew

6.5 FEEDBACK REGISTER (RELEVANT TO MID)

• No feedback received since December 2017.

6.6 DEBT REPORT AND WSE DASHBOARD

• The committee noted the debt report and dashboard.

6.7 LAKE WELLINGTON LAND AND WATER MANAGEMENT PLAN

• Cailtin Pilkington and Shayne Haywood from West Gippsland

Catchment Management Authority provided a presentation to the group. A copy was circulated out of session.


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7. GENERAL BUSINESS

Blue Rock releases The group discussed why water is being released from Blue Rock. Mr Clapham noted that water is typically released for environmental purposes or transferred to Lake Narracan for the Latrobe Valley Ski Club events under the Sustainable Water Strategy. Spear point issue from December meeting Mr Drew noted that he would still like some information published in newsletters and media about applying for spear point bore systems. ACTION: Chris Hughes to be invited to do a presentation on groundwater application process (Clapham) Tinamba pipeline contract Tenders have closed. Those contractors who are not part of the shortlisting process have been informed that they have been ‘set aside’ at this stage. ACTION: Mr Clapham to follow up on formal review of balancing storage issues (Clapham)

8. FOR NOTING

a. INCOMING CORRESPONDENCE

• Nil

b. OUTGOING CORRESPONDENCE

• Nil

9. MEETING EVALUATION

10. NEXT MEETING

The next meeting No. 163 of the Macalister Customer Consultative Committee is scheduled for 10.00 am on Tuesday, 24 April 2018, at Southern Rural Water, Maffra.

11. MEETING CLOSE

There being no further business, the meeting closed at 1pm.


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Sept 2016

Oct 2016

Dec 2016

Feb 2017

April 2017

May 2017

July 2017

Sept 2017

Oct 2017

Dec 2017

Feb 2018

Graeme Anderson

Stephen Dwyer Apol

Jeanette Howie Apol Apol

Brad Missen

David Read Apol Apol Apol

Norm Drew

Jason Scicluna Apol Apol Apol Apol

Malcolm Sellen Apol Apol Apol

Jim Forsyth

Alan Clyne

Raelene Hanratty

- Attended Meeting Apol - Notification of apology

Blank - Did not attend


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5. BUSINESS ARISING FROM PREVIOUS MEETINGS

Mtg No.

Agenda Item

Action Item Responsible Officer

Aspirational date

Base date Status

163 6.3 Mr Prior to bring proposal for customers to trade on Waterbid to April meeting

Mr Prior 30 April 2018 30 April 2018

Important

163 6.3 Mr Clapham to investigate an indicator in the weekly snapshot and potentially a text message that gives people an idea of how we are tracking with low reliability

Mr Clapham 30 April 2018 30 May 2018

Important

163 7 Mr Clapham to follow up on formal review of balancing storage issues

Mr Clapham 30 April 2018 30 May 2018

Important

6. PRINCIPAL MATTERS

6.1 CHAIRPERSON’S REPORT

• Mr Missen will provide his report.

6.2 MATTERS REFERRED FROM THE BOARD

• No items referred from the board.

6.3 MANAGER WATER SUPPLY EAST UPDATE

• Mr Clapham will provide an update. 6.4 WATER TRADING VIDEO

• Mr Prior will present a water trading video.

6.5 WATER BID OPTIONS

Item No: 6.5

Subject: Waterbid Customer Access

Action: For noting

Author: Gavin Prior, Operations Supervisor

Date: 16/04/2018

PURPOSE

1. To inform the committee on progress updating Waterbid to allow customer access to buy and sell water and seek guidance as to preferred options.


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RECOMMENDATION: That the committee provides guidance on which option is preferred.

PREVIOUS COMMITTEE CONSIDERATIONS

2. This was an action from the February MCCC meeting 162 regarding trading on Waterbid.

BACKGROUND

3. Over the last three seasons SRW has been conducting online allocation auctions using a platform called Waterbid. Water is sold via a no reserve auction process with the revenue going back to future modernisation projects. There has been a request from the MCCC to investigate how customers could have access to this trading platform and what would be the implications of this for SRW.

REPORT

4. We have recently reviewed and upgraded the Waterbid platform so that registered customers can have the opportunity to buy or sell allocation. This functionality includes the ability to set a reserve or ‘buy it now’ price and set timeframes.

5. These methods of sale provide a true market value for the water, which will be transparent to all registered users. This platform will provide a place for customers (buyers and sellers) to agree a price, but it is important to note that the trade cannot be completed on Waterbid.

6. We have identified that the payment functionality and the ability to schedule the trade in the Water Register is possible, however it would require major changes to the platform and this will not be in this project’s scope.

7. Implementing this change to the platform will also require updated terms of reference, conditions of use of Waterbid and fraud prevention, which will require legal review. We are currently looking to other online trading applications for how they deal with this issue

SRW Involvement

8. There are options for how involved SRW can be in supporting the trading platform for customers, without taking on a brokering role:

9. Option 1

• Similar to WaterMatch, SRW provides the platform and support, without being involved with the payments or processing – except the actual transfer process that we would normally complete.

10. Option 2

• SRW can approve all volumes that are placed by customers to make sure the customer has the water available to sell before the auction.

• Once the auction is completed SRW can make contact with the seller or buyer to provide the Water Register transfer form for completion.

• SRW sends emails to auction winners advising them of the next steps

Budget impact:

11. Option 1, SRW will have ongoing support costs and also admin support, which can currently be completed by existing staffing.


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12. Option 2 requires further platform development costs and legal review, estimated at $10,000.

13. Under option 2, SRW costs could be significant per transfer and this would require extra resources to complete.

Link to strategy:

14. This project links to both more water for production and customer control and convenience.

Risk:

15. This is dependent on the involvement undertaken by SRW; it is preferable to have a simple platform with support to help manage the transfer without taking on a brokering role.

NEXT STEPS

16. Internal SRW review of risk requirements and resourcing required to complete this piece of work including the legal review and consultation with DELWP around legislative requirements.

17. Updating FAQs and user manuals on Waterbid to allow customers to step through the process of buying or selling water without issue.

18. Input from MCCC regarding platform development options and SRW involvement (this meeting).

6.6 MID DRY CONDITIONS

Item No: 6.6

Subject: Dry conditions in MID

Action: For noting

Author: Terry Clapham, Manager Water Supply East.

Date: 17/04/2018

PURPOSE

1. To explore with the committee, whether or not the current dry conditions represent a localised drought in the MID and if a review of our current drought reserve rules is warranted.

RECOMMENDATION: That the committee notes the paper and provides Management with advice and guidance.

PREVIOUS COMMITTEE CONSIDERATIONS

2. Nil.

BACKGROUND

3. Lake Glenmaggie was technically full and spilling on December 2 through to December 15 2017, meaning all usage to that date is considered spill (53GL) and entitlements were reset to allow 100% HRWS allocation from that point.


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4. Since December 2017, we have experienced very low rainfall in the MID and the Lake Glenmaggie catchment.

5. Totals of 110mm have been recorded in the Glenmaggie rain gauge from December 15 to date, which is well below average.

6. Inflows are also at very low levels with streamflows on the upper Macalister below harvestable levels for most of March and to current date.

7. In comparison, we have harvested ~12.3GL this year (since December 15) compared to ~7.5GL last year in the same period.

8. Payback of Thomson water is still occurring to current date and 2.5GL remains to be paid back to the drought reserve.

9. Anecdotal evidence suggests that water is currently trading around $75/ML and as low as $50ML. Water seems to be available to those who need it.

10. Trading of allocation has ramped up in recent weeks, but not in extraordinary numbers or volumes.

11. Currently, 25% of ABAs in the MIA have 0% to 10% remaining allocation, whilst 51% have between 10% and 50% remaining. 10% of ABAs have over 90% remaining.

12. Historically, the last 10 years has been a golden era for allocation and spill entitlement availability.

• In seven of the last 10 seasons, Glenmaggie has spilled in December, providing 100% allocation from that point on.

• Of those seasons, allocations of LRWS have been between 5% and 100%.

DISCUSSION

Comment on current allocation

13. Given we are experiencing very dry conditions since December, our allocation remaining figures show that significant volumes are yet to be used. This evidence seems to suggest that most customers are not in a critical situation in regard to water availability.

14. Anecdotal and evidenced trading activity also suggests that the market for allocation is weak.

Possible actions SRW could take

15. The obvious action to alleviate a drought is to discontinue pay back to the Thomson to expedite LRWS allocation.

16. In practice this season, if we did not pay back the Thomson reserve we used to underwrite the MIA allocation to 100%, we would have been able to announce up to 10% LRWS using all of the reserve – even with low inflows/rainfall.

17. This would leave a deficit in the drought reserve, which, from past experience, we know may not refill quickly depending on conditions through spring.

18. When adjusting the drought reserve rules to include underwriting of MIA allocation up to 100%, we considered this scenario and decided that if we couldn’t pay back the water to the drought reserve in the same season, then the season must be dry enough to warrant that deficit.


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19. We did not consider, however, whether we should discontinue the pay back to expedite LRWS allocation. Nor did we consider using further volumes to create even greater allocations of LRWS.

20. Does the committee think it necessary to review the Thomson drought reserve rules to consider conditions such as we are experiencing now?

21. We could consider:

• Is 100% plus spill entitlement in a single season drought conditions?

• Should low inflows/rainfall after spill period finishes influence our use of the Thomson drought reserve?

• Should heat, wind or other latent conditions be considered in our decision-making processes?

6.7 MID2030 UPDATE

• Geoff Enever will join the meeting to provide an update.

6.8 FEEDBACK REGISTER (RELEVANT TO MID)

From: Ray Smith [mailto:[email protected]] Sent: Wednesday, 4 April 2018 9:35 PM To: Mark Price <[email protected]> Cc: 'Gail Gatt' <[email protected]>; 'Cam Juha' <[email protected]> Subject: Water levels for Ski Events Hi Mark, Just wanted to say a big thanks to you and the crew for giving us such perfect and consistent water levels for our big events at Lake Narracan. As you know, Lake Narracan is a very shallow lake in general, and having the lake sitting at around 68-70% for the duration of the Victorian State Championships through to the Latrobe City International Open with the best skiers in the world attending, allows the club to run two of the biggest events in safe and efficient conditions. We have been complimented on our events by many skiers from all over Victoria and the best in world pushing us to continue running these events. Without this support from SRW, the State Water Minister and especially the crew at Blue Rock, these events just wouldn’t happen, so thanks again and look forward to working with you guys again next season. As a thank you from the club, if any of the guys would like to come down to the club and have ski behind the club boat you will be very welcome. Thanks again and Best Regards Ray Smith Club President Latrobe Valley Water Ski Club 0419 505 254

7. GENERAL BUSINESS

8. FOR NOTING

mailto:[email protected]





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8.1 INCOMING CORRESPONDENCE

• Nil

8.2 OUTGOING CORRESPONDENCE

• Nil

8.3 COMMUNICATIONS REPORT RECOMMENDATION That the committee notes the report. AUTHOR Bernadine Phelan, Communications and Engagement Manager Media • Media release on transport of large pipes and information on logistics for users of local roads

during the stage 2 MID modernisation works this winter. • Media feature on women recently appointed to roles in the field and planning areas –

coincided with social media campaign for International Women’s Day (below) • Media release on successful Permanent water share auction at Maffra office. Publications • MIA newsletter sent out January, including article on the successful take-up of the Water

Share Distribution throughout December and January.

Events and community • Attendance at FarmWorld • Planning is underway for the 2018 Rusty Shovel Golf Day charity fundraiser 25/05/18.

Website • Updates on projects and news post versions of media releases • Promotion of online allocation auctions • Notice of next MID2030 customer meeting for Stage 2 customers • Call for MCCC nominations • Results from permanent water share auction


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Social media • Promotion of online allocation auctions • Campaign to showcase range of women in roles across SRW for International Women’s

Day. These included new MID and EIB staff in the field maintenance and planner roles. It also included quotes from the MCCC Deputy Chair, our Board Chair and Deputy Chair.

• Education program with local primary schools, including Lake Glenmaggie, Cowwarr Weir and channels.

• Social media campaign continuing to widen recruitment and raise awareness of different jobs available at SRW

• CORE4 Grant program information sessions, funded through West Gippsland CMA, includes sharing dairyfarmer stories.

• Farm World attendance • World Water Day • Smarter Irrigation Field Day promotion for AgVic • Dairy Situation and Outlook from Dairy Australia • Cowwarr Weir drone footage • Young Dairy Network promotion • WGCMA Lake Wellington Land and Water Management Plan Case studies • We are continuing work on developing packages (including video) that will include:

• Customer interviews about their modernisation/rationalisation experience • Case studies to show modern irrigation practices on farm • Case studies of farmers involved in trading • Animations explaining water allocation, high and low reliability and spill

9 MEETING EVALUATION

10 NEXT MEETING

The next meeting No. 164 of the Macalister Customer Consultative Committee is scheduled for 10.00 am on Tuesday, 22 May 2018, at Southern Rural Water, Maffra.


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Meeting Date MCCC 162 Tuesday, 27 February 2018

MCCC 163 Tuesday, 24 April 2018

MCCC 164 Tuesday, 22 May 2018

MCCC 165 Tuesday, 24 July 2018 MCCC 166 Tuesday, 25 September 2018

MCCC 167 Tuesday, 23 October 2018

MCCC 168 Tuesday, 18 December 2018

11 MEETING CLOSE

mccc agenda - southern rural water · mccc agenda meeting no. 163. 10.00am, tuesday 24 april, 2018...

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