Ordinary Council Meeting 27 September 2017

7.1 FEASIBILITY STUDY FOR A SEWERAGE SCHEME AT GUNDAROO

SUMMARY
This report provides an update on the investigation of the feasibility of a sewerage scheme at Gundaroo. The
report recommends the draft Gundaroo Sewerage Scheme Options Study be placed on public exhibition.

RECOMMENDATION
That Council:
1. Place the draft Gundaroo Sewerage Scheme Options Study on public exhibition;
2. Hold a community forum to brief the community on the Options Study during the exhibition period;
and
3. Survey the community in the village of Gundaroo to ascertain interest in a sewerage scheme in
Gundaroo.

FINANCIAL IMPLICATIONS
As per Council Resolution 314/2016, subject to agreement being achieved, the cost of undertaking the
Option Study is to be shared on a proportional basis between the proponents of the Kyeema, Faithfull
Street and Coolawin Planning Proposals and Council.
Council allocated $50,000 in the 2017/18 Operational Plan from the Sewer Fund for the purposes of
undertaking this study.
Further discussion on funding options for construction of a sewerage scheme in Gundaroo is included in the
body of this report. For Council to construct a sewerage scheme in Gundaroo, a grant funding contribution is
required.

POLICY & LEGISLATION

Nil.

REPORT
1. Background

The village of Gundaroo does not have a centralised sewerage treatment system. Sewage and treated
effluent is currently managed by on-site treatment systems. These systems require residents to operate and
maintain them.

As listed below three developments are currently proposed surrounding the Gundaroo Village, including the
current status of the development with Council:
Kyeema Planning Proposal endorsed by Council and forwarded to Minister for Planning to request
an amendment to be made to the Yass Valley LEP 2013.
Faithfull Street - Planning Proposal endorsed by Council and forwarded to Minister for Planning to
request an amendment to be made to the Yass Valley LEP 2013.
Coolawin - Consideration of Planning Proposal deferred by Council until a report has been
prepared and submitted examining the options of the location of a STP outside the flood prone land
and with sufficient buffers to existing and proposed housing and with sufficient capacity for the
proposed development, the existing village and any future expansion of the village.

For both the Kyeema and Faithfull Street developments the Department of Planning has required:

5,000m2 minimum lot size with on-site sewage management systems; or

2,000m2 minimum lot size with reticulated sewer.

Two of the three potential developers have proposed various small individual schemes for their
developments. Smaller individual schemes may not allow expansion and connection of other lots. It is

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 Ordinary Council Meeting 27 September 2017
preferable that a whole village solution be determined rather than piecemeal standalone systems for the new
development areas. Such a whole village solution could have an option for onsite systems of existing village
properties to be maintained in the short term, with connection to the scheme at some point in future.

With the aim of consideration of a whole village solution Council resolved at its Ordinary Meeting on 21
December 2016 that:

1. The approach to investigating the options for a reticulated sewer scheme for Gundaroo be endorsed;
2. Subject to an agreement being achieved the cost of undertaking the investigation be shared on a
proportional basis between the proponents of the Kyeema, Faithfull Street and Coolawin Planning
Proposals and Council;
3. Councils proportional cost of the options study be funded from the Sewer Fund Reserve similar to
those previously undertaken for the villages of Binalong, Bowning and Murrumbateman.

2. Gundaroo Sewerage Scheme Options Study

NSW Public Works Advisory was engaged to undertake this Options Study. NSW Public Works Advisory has
vast experience in providing cost effective solutions for sewage management to rural and regional
communities across NSW.

As part of the engagement, NSW Public Works Advisory was asked to examine various options for reticulated
sewerage and sewage treatment, including:

Describing the system in sufficient detail;

Examining the advantages and disadvantages of the system;
Estimation of capital and operating costs; and
Consideration of funding options.

As part of this assessment Public Works Advisory were also asked to assess options proposed by the
developers for sewage management.

The projected population (equivalent tenements) considered as part of the study is summarised below:

Current dwellings = 175

Vacant or potential Lots = 46
Future possible lots from Crown land =6
Lots from Kyeema and Faithfull Street Developments = 120
Lots from Coolawin (subject to planning approval) = 23
TOTAL = 370 ET

Based on this analysis of potential lots, Public Works Advisory was asked to consider a design maximum of
400 ET (equivalent to 1,320 people) as part of the Options Study. Based on this it is noted that any demand
beyond 400 ET would not be able to be accommodated unless the scheme was expanded. Should Council
proceed with a sewerage scheme in Gundaroo guidelines around this requirement of the village to remain
within 400 ET would need to be developed to ensure demand does not exceed the scheme capacity.

The Options Study developed by NSW Public Works Advisory is included in Attachment A.

Within the Options Study three main methods for both collection and transport and sewage treatment and
effluent management were considered. These are outlined below, including the estimated cost and Options
Study recommendation.

Collection and Transport

1. Gravity Sewerage System (similar to Murrumbateman sewerage scheme) - $4,027,257
Summary: Collection system consists of gravity reticulation, pumping stations and rising mains. Sewage
from individual lots flows through gravity mains to a downstream pumping station. It is then
lifted through a pressurised rising main to another gravity main, transfer pumping station or
sewage treatment plant (STP).
Advantages: Low operating costs
Reliability
Suited to terrain of Gundaroo
Well established design standards
Disadvantages: Disturbance during construction

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2. Pressure Sewerage System - $3,958,740

Summary: A pressure system has a grinder pump located inside a holding tank (pump/tank unit) and a
boundary box located at every property. Each residence would have its own pump/tank unit.
The pump unit would typically be located between the house and the existing septic tank
and would intercept the existing household sewer line. At a pre-set level in the tank the
pump activates and any solids are ground and then pumped to the pressure sewerage
reticulation system. The sewer pressure mains would be located in the street and a small
diameter pipeline would connect the pump/tank unit on each property to it.
Advantages: Low capital cost
Suitable in flat, difficult or flood prone terrain, or where rock is present
Minimal disruption during construction
Disadvantages: High operating costs
Implementation and connection can be staged

3. Septic Tank Effluent Pumping System (STEP) or Common Effluent Drainage System - $9,646,945
Summary: These systems entail the retention or a new septic tank for pre-treatment and provision of
either a gravity based reticulation system or a small diameter pressure system with the
provision of a pump at each property for the transport of effluent to a STP for treatment. The
developer of Kyeema is proposing a similar style system.
Advantages: Only effluent requires treatment
Fewer blockages
Minimal disruption during construction, with the exception of installing new septic tanks in
private properties
Disadvantages: High operating costs
Pump out of sewage still required from septic tank
Residents remain responsible for septic tank and its maintenance
Council inspection of septic tanks required

The Options Study recommends the Gravity Sewerage System based on its capital cost being comparable to
other options and the significant operating benefits such a system provides.

Sewage Treatment and Effluent Management

1. Intermittently Decanted Extended Aeration (IDEA) STP with discharge to Yass River or irrigation of pasture
(similar to Yass STP) - $6,495,000
Summary: The IDEA reactor system is the most commonly used secondary biological treatment process
in NSW. IDEA is a modified form of the activated sludge treatment process. An IDEA based
process provides both the functions of a traditional activated sludge treatment process with
aeration and secondary settling within the same tank. The developer of Coolawin is
proposing a variation of this option, including irrigation of pasture, however there are
disadvantages such a system presents outlined in the Options Study.
Advantages: Small footprint
Provides for wet weather flows
Quality of discharge
Working life
Disadvantages: High capital and operating costs
Regular sludge management

2. Oxidation Pond with evaporation or irrigation of pasture (similar to Murrumbateman STP) - $3,900,000
(evaporation) - $4,485,000 (irrigation)
Summary: Oxidation pond based STPs are a simple, generally lower capital and maintenance cost form
of secondary treatment compared to the IDEA process. Oxidation ponds are large, shallow
ponds designed to treat wastewater through the interaction of sunlight, bacteria, and algae.
An area of approximately 1.5 Ha will be required for the oxidation ponds. An additional 12
Ha is required for evaporation ponds, or if irrigation is proposed then an additional 30 Ha is
required.
Advantages: Simplicity
Low capital and operating costs
Desludging only required every 15 years
Disadvantages: Large footprint (land acquisition)
Quality of effluent (in comparison to IDEA STP)

3. Proprietary AdvanTex STP and subsurface irrigation - $5,544,895

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Summary: This option is a scaled up version of the scheme proposed for the Kyeema development.
The sewage system proposed for Kyeema comprises of a STEP system and subsequent
treatment via the proprietary AdvantexTM treatment process by Orenco Systems. It consists
of below ground treatment modules and uses an engineered textile media to treat
wastewater to provide biological treatment. Disinfection is via an artificial UV system and
effluent is disposed of via subsoil irrigation. It is visually unobtrusive and odour free
according to the manufacturer. This system has been used successfully in New Zealand and
for smaller development within Australia. This system could be adopted across the village,
however, a village of the size of Gundaroo, hasnt been sewered in this fashion within
Australia. Such a system is likely to be reliant upon a contractor to operate.
Advantages: Capital cost lower than IDEA STP
Small footprint
Visually unobtrusive (system underground)
Shorter buffer distances possible
Modular (ability to stage)
Disadvantages: Risk as system not used for a village the size of Gundaroo in Australia
Short working life in comparison to other options
Ground water and bore water contamination risk
Resident on-site systems (STEP for solids) operate as well as the STP
Blockage of subsoil irrigation pipework
Wet weather flow storage

The Options Study recommends the Oxidation Pond STP option as it is the lowest capital and operating cost
option and has been used successfully in many locations. Land is required to be sourced however for this
option for either the evaporation pond of irrigation options.

Arising from the Options Study, should Council elect to proceed further with a proposal for a sewerage
scheme in Gundaroo the following investigations need to be carried out for potential STP sites:

Geotechnical Investigation
Ground Water Assessment Study
Environmental Study (REF)

For the STP options where pasture irrigation or subsurface irrigation is proposed, further investigations
would be required due to the potential for contamination of the water bores within the village. This is the
reasoning for the Options Study recommending a Ground Water Assessment Study to occur.

Based on the recommendations of the Options Study with regard to collection and transport from properties
and an STP, the total capital cost for the provision of a sewerage scheme at Gundaroo is estimated to be
$7,927,257.

3. Summary of Financial Analysis

Based on the recommendations of the Options Study outlined above, financial implications for Council and
current and future residents were analysed for the sewerage scheme at Gundaroo. The Options Study
presents the outcome of a long-term (30-year) financial analysis, considering the life-cycle costs of operating
the sewerage scheme and the financial impacts under various capital cost funding scenarios for the scheme.
The funding scenarios for the capital cost of the scheme consider various options in relation to potential
income including grants, upfront payment from existing residents, section 64 payments from new lots
developed and loans. As part of the modelling the impact on annual sewerage rates is also outlined for each
option.

A summary of this analysis is provided below:

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 Ordinary Council Meeting 27 September 2017
Scenario Grant Up-front Sec.64 Required Annual Required Required
payment Payment Borrowing Bill paid Annual Annual
by by New @ 5% p.a. by Bill Bill
existing (Future) interest (2017/18$) (2017/18$)
customers, customers, rate p.a. (for 30 p.a. (for 20
per ET per ET years) years)
Scenario No $23,209 $23,209 $5.5 Gundaroo $710 $710
1 Grant Million customers
only

Scenario No $0 $23,209 $10.43 All $764 $782

1a Grant Million Council
sewerage
customers
including
Gundaroo
Scenario 30% $10,500 $23,209 $5.0 Gundaroo $660 $660
2 Grant Million customers
($2.378 only
Million)

Scenario 30% $0 $23,209 $6.84 All $692 $699

2a Grant Million Council
($2.378 sewerage
Million) customers
including
Gundaroo

Scenario 50% $2,800 $23,209 $3.964 Gundaroo $660 $660

3 Grant Million customers
($3.963 only
Million)

Scenario 50% $0 $23,209 $4.453 All $670 $672

3a Grant Million Council
($3.963 sewerage
Million) customers
including
Gundaroo

Scenario 50% $0 $23,209 $4.453 Gundaroo $845 $845

4 Grant Million customers
($3.963 only
Million)

Scenario 56% $0 $23,209 $3.98 Gundaroo $660 $660

5 Grant Million customers
($4.439 only
Million)

Scenario No $0 $23,209 $11.00 Gundaroo $1,890 $1,890

6 Grant Million customers
only

Reference to Scenario 4 (50% Grant) of the above table to assist in explanation: If there is no upfront
payment by existing Gundaroo village residents, then their annual sewerage rates shall be $845.
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Alternatively, if Council wish to keep the same sewerage rate across the Yass Valley LGA, then all sewerage
rate payers of Yass, Murrumbateman and Gundaroo have to pay an additional ten dollars more as per
Scenario 3a).

Of the scenarios outlined those which do not incur any additional cost to the existing Gundaroo village
residents and the wider community are preferred (scenario 5). Council may consider this further once the
community has been consulted and pending potential opportunities for grant funding.

4. Community Consultation

It is recommended Council place the Options Study on public exhibition until the end of October. As part of
the brief for NSW Public Works Advisory, they are to hold a community forum to provide information to the
community on the Options Study. During the exhibition period it is recommended that this forum occur in
collaboration with Council. A tentative timing for this forum is the third week in October.

This report also recommends that Council staff survey residents in the Gundaroo village to gauge interest in
Council providing a sewerage scheme in Gundaroo.

5. Funding Options

Within the financial analysis of provision of a sewerage scheme in Gundaroo it is clear Council requires a
portion of the construction cost to be grant funded to limit or avoid any impact on existing Gundaroo
residents.

The NSW Government recently announced the $1 billion Safe and Secure Water Program. A sewerage
scheme at Gundaroo is expected to be eligible under the guidelines of this program. The program is
expected to operate over approximately 10 years with Councils able to apply for funding at any time. Under
the program guidelines Yass Valley Council is eligible for up to 50% funding for a project.

At the conclusion of the public exhibition period for the Options Study Council may wish to apply for
funding under this program. A further report will be brought back to Council at the end of the exhibition
period providing further information on the options that are available to Council under this program.

STRATEGIC DIRECTION
Theme 6. Local Infrastructure and Services
Long Term Goal 6.6 - We have appropriate sewerage systems to ensure a safe and healthy
environment
Strategy 6.6.2 - Seek additional State and federal government funding for new or upgraded
reticulated sewerage systems
Strategic Action 6.6.2.1 Lobby for inclusion in State Government sewerage subsidy program for
Bowning and Binalong.

Attachments: A. Gundaroo Sewerage Scheme Options Study (Under Separate Cover)

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