Now that Braidwood is flushed with funding for the replacement of the sewerage treatment plant, it appears that the sewer charges will only decrease slightly.
At Council last Thursday Mr Jan Esman questioned why charge reductions would not exceed $200. The General Manager Peter Bascomb replied that the "loan component was only one part of the overall cost on which the sewerage charges were based. The on-going operational costs, maintenance, depreciation and administration costs remain regardless of the grant. The community needs to be aware that the grants are only for capital works so if we put in a cheaper system there will not be money left over to put towards on-going operational costs."
Mr Bascomb confirmed later that the original calculation that had shown only a $200 reduction was done "on the basis of a 50% subsidy for only the STP part of the project, not all the other work, pump stations, mains replacement and the like. Further it only takes out the loan repayment component of the annual costs, not the whole cost. Additional annual costs include operation, maintenance and administrative costs plus the depreciation of the asset. Further, the state money comes with the condition that the treated effluent be recycled. This is a good idea which we explored, particularly with the Club, but in the end it was just another cost the community would have had to wear and Council couldn't justify. Now it looks as though the community can now afford it, but it does add to the cost of the whole project to the extent that the State and Federal grants will not now cover the cost of the whole project as currently proposed.
Council is pursuing the details of what exactly the State requires. When we have that information we will be able to rework both the Section 64 and pricing policy documents. I anticipate that the reduction will be greater than the $200 previously advised but I'm not willing at this stage to take a stab at exactly what the figure will be. At this stage I'm thinking that we will delay the reworking of these documents until we see the outcome of the value management workshop from which we may get a different system to the one currently proposed.
Staff are also considering the merits of a single pricing policy across the three systems, as suggested by many in the community. Council has previously considered a single pricing structure inappropriate given the discrepancy between the annual costs of the three sewerage systems. These grants mean that it is possible that the costs will be closer in the future making a single policy possible. There are however other factors to consider such as the rapid growth of Bungendore and the impact that has on developer contributions. Council will need to consider this issue prior to determining its new pricing policies. So, unfortunately, I have to say 'watch this space' as Council works through all the ramifications of the grants."
Council has decided to go ahead with a Value Management Workshop "to examine the options for sewage treatment at Braidwood and to recommend a preferred direction for upgrading of the plant."
The staff recommendation to hold the workshop was nearly lost when Cr Raynolds moved a contrary motion to not hold the workshop.
Cr Raynolds said that the "plant has to last 25 years. Think about what a failure will cost this Council?" On using $30k from the sewer fund to pay for the workshop, Cr Raynolds said that the workshop will cost $300(sic) per ratepayer.
However Crs Harrex and Moore voted to hold the workshop and the decision came down to the Mayor's vote, who said that he had to vote for the workshop as "the community don't trust us. So I'm inclined to support it, I will support it, but have reservations."
Several members of the public gallery had spoken to the item, addressing issues of the workshop, and the future charges to ratepayers.
Judit Kovacs, on behalf of BRASS, asked unsuccessfully for a number of changes be made and sought to clarify if Council was "still committed to an open tender process?" She continued, asking "whether or not Council is seeking to steer the Workshop towards a predetermined outcome?"
The workshop is scheduled for 7 -8 November and will be facilitated by the Australian Centre for Value Management.
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