Transcript Client Name Gladstone Regional Council Project Name 1770/Agnes Water Integrated Water Contract Requirements Date 20 July 2008 Gladstone Regional Council 1770/Agnes Water.

Client Name
Gladstone Regional Council
Project Name
1770/Agnes Water Integrated Water
Contract Requirements
Date
20 July 2008
Gladstone Regional Council
1770/Agnes Water
About the presenter
Providing Infrastructure advice in …
PNG
Sri Lanka
Sumatra
Yemen
Namibia
Port Douglas
Townsville
Innisfail
Mission Beach
Mackay
Toowoomba
Warwick
Noosa
Noosa
Redcliffe
BRISBANE
Gold Coast
Parramatta
Mildura
Grampians
Daylesford
Ballarat
Geelong
MELBOURNE
Gladstone Regional Council
1770/Agnes Water
Coffs Harbour
Bega
Wodonga
Gippsland
Introduction
Water and Wastewater Utilities Services Agreement
>
Parties
– Gladstone Regional Council; and
– United Utilities Australia.
>
Purpose
– “The Council proposes to implement the “1770/Agnes Water Integrated Water Project to provide
sufficient good quality water and wastewater services to the townships of 1770 and Agnes Water.”
>
Process:
–
–
–
–
–
–
–
–
–
–
Contract Procurement workshop
Business Case
QTC Financial Modeling
Detailed Options Analysis
Environmental approval
Planning approval
Expression of Interest
Tender
Award subject to limited Condition Precedent (CP)
Modification, funding approval and release of CP
Gladstone Regional Council
1770/Agnes Water
Contract Principals
>
>
Form of Contract :
Term:
>
References Contracts:
>
Aim:
Obligations:
> Design
> Construction
> Operation
> Land
> EPA Licence
> Payment
> Pre-existing Contamination
Gladstone Regional Council
1770/Agnes Water
Fixed Price - Design Build Operate
10 years post Commercial Acceptance
with 5 year extension (20 years)
Wagga, Wodonga, Ballarat (2), Noosa (2),
Central Highlands (3) etc
To engage with a best practice Operator; leverage high standard of
performance; provide price and performance certainty all in an
affordable package (contained water rate increases).
UUA
UUA
UUA
Council
Council
Council
Council
Contract Term
Effective Date
Last Date for Commercial
Acceptance (DfCA)
Expiry of Term
(unless extended)
Contract Term
Operating Term
Design, Construction &
Commissioning
Commencement Date
Gladstone Regional Council
1770/Agnes Water
Option
Extension 1
(5 years)
10th anniversary
of DfCA
Optional
Extension 2
(5 years)
15th anniversary
of DfCA
20th anniversary
of DfCA
Contract Scope
>
>
>
>
>
Operate & maintain Councils existing water & wastewater treatment assets;
Upgrade the existing Lagoon treatment system to ensure the effluent is in compliance
with EPA standards;
Design & Construct the following new assets (Modification);
– Wastewater treatment plant;
– Desalination and bore water treatment plant;
– 1770 Water supply pipes and reservoir;
– 1770 Wastewater reticulation pipes
– Interconnecting pipework to and from water & wastewater assets; and
– Overall SCADA control system.
Operations, maintenance and asset renewal for all water & wastewater treatment
assets for the Contract Term;
Invited Services in Water outside 1770/Agnew Water region.
Gladstone Regional Council
1770/Agnes Water
Contract Responsibilities
>
>
Principal: Council have employed Best Practice Operator to deliver assets and
operate plants and in UUA’s area of responsibility UUA will take the responsibility.
UUA will at its own cost and risk:
–
–
–
–
Design;
Construct;
Operate; and
Repair maintain
each Facility so that it can provide the Services to at least the Quality Standards.
>
Without limitation UUA accepts the risk ….. whether or not this agreement refers …
unless the Council expressly agrees to bear that risk;
>
UUA shall perform the obligations in accordance with the Minimum Standards and this
agreement on the basis of their Submission.
Gladstone Regional Council
1770/Agnes Water
Contract Payment
>
Design & Construct – Fixed Priced Milestone schedule
– Milestone Completion;
– Design Certification;
>
Start-Up Operations - Toll
– Existing Lagoon Toll (Fixed monthly)
– Existing Water Toll (Fixed and Variable).
>
Technical Completion
– Design Certification;
– Compliance Testing;
– Step performance increase
– Toll increases
>
Operations - Toll
– Wastewater Toll (Fixed and Variable);
– Water Toll (Fixed and Variable);
– Asset Replacement (Fixed annual);
– Pre agreed escalation Formula.
Gladstone Regional Council
1770/Agnes Water
Security and Liquidated Damages
>
>
>
>
Warranties attained
Security Deposit
Security reduces following Commercial Acceptance i.e.:
– Commissioning
– Process Stabilisation
– Technical Completion
– 40 day on load wastewater compliance test with 24 hour sampling and continuous
conformity
– 30 day on load water compliance test with 24 hour sampling and continuous conformity
Liquidated Damages
– Desalination Plant
– Wastewater Plant
– 1770 water & wastewater pipelines
Gladstone Regional Council
1770/Agnes Water
Performance and Toll Abatement
>
Technical Completion:
– UUA warrants that Plant will meet new Quality Standards
– The New Toll applies
– Toll abatement applies
– 40 and 30 day performance test to achieve Commercial Acceptance
>
Toll Abatement:
– Pre-determined % reduction in Toll
– Maximum is 20% of monthly Toll
– Abatement is to maximum % for single event
Gladstone Regional Council
1770/Agnes Water
Performance Requirements - Wastewater
Table 3.2 – Reclaimed Water Quality Standards for nutrients
Parameter
Unit
Limit 50% ile
Limit 90% ile
Total Nitrogen
mg/L
Less than 5
Less than 10
Total Phosphorus
mg/L
Less than 1
Less than 2
Table 3.3 – Reclaimed Water Quality Standards for Class A+ Recycled Water
Parameter
Unit
Limit
Limit Type
E coli
Cfu/100mL
Less than 10
Median
BOD5
mg/L
5
Median
Turbidity
NTU
2(5)*
95% ile
SS
mg/L
5
Median
TDS
mg/L
1000
Median
Conductivity
µS/cm
1600
Median
pH
Not applicable
6 – 8.5
Not applicable
Gladstone Regional Council
1770/Agnes Water
1770/Agnes Water
Gladstone Regional Council
10/03/2008
10/12/2007
10/09/2007
10/06/2007
10/03/2007
10/12/2006
10/09/2006
10/06/2006
10/03/2006
10/12/2005
10/09/2005
BOD5
10/06/2005
10/03/2005
10/12/2004
10/09/2004
10/06/2004
10/03/2004
10/12/2003
10/09/2003
10/06/2003
10/03/2003
10/12/2002
10/09/2002
10/06/2002
10/03/2002
10/12/2001
BOD (mg/L)
Performance – Existing Wastewater
BOD
BOD Max
180.00
160.00
140.00
120.00
100.00
80.00
60.00
40.00
20.00
0.00
11
/1
1/
11 2 00
/1
5
2/
11 2 00
/0
5
1/
11 2 00
/0
6
2
11 /2 0
/0 06
3/
11 2 00
/0
6
4/
11 2 00
/0
6
5/
11 2 00
/0
6
6
11 /2 0
0
/0
7/ 6
11 2 00
6
/0
8/
11 2 00
/0
6
9
11 /2 0
/1 06
0/
11 2 00
6
/1
1
11 /2 0
/1 06
2/
11 2 00
/0
6
1/
11 2 00
/0
7
2
11 /2 0
/0 07
3/
11 2 00
/0
7
4/
11 2 00
/0
7
5/
11 2 00
/0
7
6
11 /2 0
/0 07
7/
11 2 00
7
/0
8/
11 2 00
/0
7
9
11 /2 0
/1 07
0/
11 2 00
7
/1
1
11 /2 0
/1 07
2/
11 2 00
/0
7
1/
11 2 00
8
/0
2
11 /2 0
/0 08
3/
11 2 00
/0
8
4/
11 2 00
/0
8
5/
11 2 00
/0
8
6/
20
08
Performance Expectation – Wastewater
Treated Wastewater Biochemical Oxygen Demand
EPA Median Limit
Gladstone Regional Council
1770/Agnes Water
BOD Median Value (mg/L)
9
8
7
6
5
4
3
2
1
0
Performance Requirements - Water
Table 3.3 – Treated Water Quality Specifications Post Technical Completion
Treated Water Quality Parameters
Limit
pH
90 percentile less than 8
100 percentile less than 8.5
100 percentile more than 6.5
TDS
25 percentile less than 350 mg/L
95 percentile less than 465 mg/L
100 percentile less than 500 mg/L
Conductivity
75 percentile less than 850 µS/cm
100 percentile less than 950 µS/cm
Alkalinity (as CaCO3)
50 percentile less than 100 mg/L
95 percentile less than 200 mg/L
Turbidity
50 percentile less than 1 NTU
95 percentile less than 2 NTU
100 percentile less than 5 NTU
True Colour (platinum scale)
50 percentile less than 5 PCU
100 percentile less than 10 PCU
Gladstone Regional Council
1770/Agnes Water
CCPP
95 percentile range between -3 to +0.5 mg/L
100 percentile range between -5 to +0.5mg/L
Performance Requirements - Water
Total Coliforms
100 percentile zero CFU/100mL
E.coli
100 percentile zero CFU/100mL
Free Chlorine (as Cl2)
95 percentile +/- 0.3 of designated set point. Not to fall outside of 0.7 –
2.3mg/L. The Council will advise the set point.
Sodium
75 percentile less than 120 mg/L
95 percentile less than 140 mg/L
100 percentile less than 150 mg/L
Chloride
50 percentile less than 170mg/L
100 percentile less than 220mg/L
Sulphate
100 percentile less than 100mg/L
Iron
50 percentile less than 0.2mg/L
95 percentile less than 0.3mg/L
Manganese
50 percentile less than 0.03mg/L
95 percentile less than 0.1mg/L
Gladstone Regional Council
1770/Agnes Water
Boron
50 percentile less than 1.3 mg/l
95 percentile less than 1.9 mg/l
100 percentile less than 2.0mg/L
Other Health related parameters
As per Australian Drinking Water Guidelines 6, 2004
(See 3.4B Below)
Performance - Existing Water
No.
Sample I.D.
Sample
type
E.coli
(cfu/100ml)
Total
Coliforms
(cfu/100ml)
1
2
3
4
5
6
7
8
9
10
LOR
A/w Trench 2 Trench
A/w Bores
A/w Water Plant
A/w School
A/w Tom Jeffery Park
A/w Reservoir
A/w Beaches of 1770
1770 red Pitt Bores
1770 Red Pitt
1770 Camping Ground
Raw
Raw
Potable
Potable
Potable
Potable
Potable
Raw
Potable
Potable
1
30,000
<1
<1
<1
<1
<1
<1
<1
<1
<1
1
170,000
78
9
11
37
2
2
62
<1
84
HPC
(cfu/ml
at
35oC)
10
3,100
10
10
<10
<10
<10
40
60
10
<10
Dr. Julian Catmull and Dr. Michael ten-Lohuis
Enviro-Check Enterprises Pty Ltd
Friday, 18 April 2008 4:08 PM
Gladstone Regional Council
1770/Agnes Water
Free
Chlorine
(ppm)
pH
*Conductivity
(µS/cm)
*Turbidity
(NTU)
0.01
NA
NA
1.5
1.5
0.6
0.6
1.2
NR
1.2
1.0
0.01
6.27
5.09
7.2
7.2
7.4
7.2
7.2
6.77
7.2
7.2
1
220
110
170
180
190
200
330
370
290
310
0.01
1.08
3.85
3.96
7.95
4.25
3.39
0.02
0.73
0.92
0.44
Water Supply - Trench
“Although raw water that is not currently in use, I think the
result is significant because this potential water source has
levels of E.coli and faecal coliforms similar to
sewage. Perhaps there are dead animals somewhere in this
body of water? I would certainly not recommend using this
water as a source for your potable water plants.”
Dr. Julian Catmull and Dr. Michael ten-Lohuis
Enviro-Check Enterprises Pty Ltd
Friday, 18 April 2008 4:08 PM
Gladstone Regional Council
1770/Agnes Water
Performance Expectation – Water
Riverland Turbidity
100.00%
99.00%
98.00%
% compliance
97.00%
96.00%
95.00%
2003 / 04 2004 / 05 2005 / 06 2006 / 07 2007 / 08
Gladstone Regional Council
1770/Agnes Water
Capital Costs
Project Component
Revised Project
Costs
Subsidy Offer*
Desalination Plant
$24,871,314
$19,948,525
Sewer Treatment
$6,849,110
$3,265,376
Reticulated Water Supply 1770
$1,368,145
$1,270,000
Low Pressure Sewerage
$3,883,800
$1,635,000
Contract Supervision
$2,063,806
$825,523
$718,271
-
$39,754,446
$26,944,424
Supply and Install Sewer Pipe
TOTALS
Normal Qld Position
40%
Outside Queensland
0%
Gladstone Regional Council
1770/Agnes Water
Sources of Capital Funding
>
>
>
>
>
Water Headworks:
Sewer Headworks:
Reserves:
Borrowings:
Subsidy:
$1,367,720
$1,239,660
$882,000
$9,320,642
$26,944,424 (including
developer contribution repayment).
Gladstone Regional Council
1770/Agnes Water
Operating Costs
> Fixed and variable components (Toll).
> Detailed financial model assessed by Queensland Treasury
Corporation.
> Estimated operating cost of the IWS in 2008/09 is $557K,
stepping up to >$1M in 2009/10 as the system comes on-line
and then costs level out.
> Scheme operates at deficit position until about Year 7 when it
returns positive cash flow.
> Deficit funded by borrowing from Council reserves.
Gladstone Regional Council
1770/Agnes Water
Contract Activities – Start Up
Who
Action Required
At least 3 weeks
before the
Commence
ment Date
Operator
Give the Council a written estimate of the quantity of operational
chemicals required so that the Operator can operate and
maintain each existing Facility for the first 4 weeks.
Annex 2 Pt 1
1.6(b)
Prior to the
Commence
ment Date
Operator
Develop a ‘Site Security Plan’ for each Site and take
responsibility for controlling and securing all Sites.
Annex 1 Pt 1
2.20
Prior to the
Commence
ment Date
Operator
Nominate any Contamination identified as a Pre-existing
Contamination.
Annex 1 Pt 2
2.3
Prior to the
Commence
ment Date
Operator
Assess the condition of each Site and prepare and deliver to
Council a ‘Site Condition Report’ including a photographic
record.
Annex 1 Pt 1
2.25
Prior to the
Commence
ment Date
Operator
Provide to the Council:

its 'plant operating procedures';

a planned 'asset management system';

plant 'monitoring' and 'reporting' regimes; and

supply contracts for plant consumables.
Annex 2 Pt 1 2.1
Prior to the
Commence
ment Date
Operator
Appoint and relocate the Operations Manager.
Annex 2 Pt 2
4.1
Date Action
Required
Gladstone Regional Council
1770/Agnes Water
Action Complete
(Enter Date)
Clause
Contract Summary
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Long term Design, Build Operate Contractor
Contract is with the Operator (UUA) not designer or builder
Contract style has been very successful in delivering exceptional outcomes for
Councils (Noosa for example)
Contract is essentially a fixed price contract with pre-agreed escalation clause
Council has engaged Best Practice Operator for services at 1770/Agnes Water with
ability to use these services outside this geographic area
Design & Construction payments are for pre-agreed and delivered milestones
Contract is performance based with payment abatement for non-compliance
Asset life is guaranteed throughout the Term of the Contract
At the end of the Term the Contract provides for managed Handover
High level of State Subsidy
Gladstone Regional Council
1770/Agnes Water
Queensland
Level 13
145 Eagle Street
Brisbane QLD 4000 Australia
t +617 3228 0700
f +617 3228 0799
Victoria
Level 2
164 Flinders Lane
Melbourne VIC 3000 Australia
t +613 8626 9200
f +613 9650 3160
www.perongroup.com.au
Gladstone Regional Council
1770/Agnes Water
Representations and Warranties
>
UUA warrants the design, the construction and the operations;
>
Council does not warrant or represent the Submission, Design Documentation, Works
or Facilities O & M;
>
UUA acknowledges that Council has relied on its representations and warranties.
Gladstone Regional Council
1770/Agnes Water
Risk, Defects and Onus of Proof
>
Sole assumption of Risk:
– Design and Construction
– Operation
UUA
UUA
>
Defects apply to Design as well as Construction:
– To be rectified by UUA at any time
– May or may not be subject to Notification
>
Onus of Proof:
– Onus of proof is on UUA as Agreement assumes guilt until proven innocent
Gladstone Regional Council
1770/Agnes Water
Bore performance
A g n e s W a t e r Su p p l y B o r e s
D e pt h of w a t e r ov e r
p u mp s
14 ( me t r e s )
12
10
P u mp in g R a t e s
8
Bor e 2 - 1. 5 l/ sec
6
Bor e 3 - 3 . 0 l/ sec
4
2
0
1/ 0 6 / 2 0 0 3
3 1/ 0 5 / 2 0 0 4
3 1/ 0 5 / 2 0 0 5
3 1/ 0 5 / 2 0 0 6
3 1/ 0 5 / 2 0 0 7
30/ 05/ 2008
D at e
Gladstone Regional Council
1770/Agnes Water
Bor e 3 - M in imum
Bor e 3 - M aximum
Bor e 6 - M in imum
Bor e 6 - M aximum
Bor e 2 - M in imum
Bor e 2 - M aximum
Contract Activities
Effective Date
Commencement Date
Technical Completion
Commercial
Acceptance
CONTRACT
EXECUTION
DELIVERY
Commencement Date
Activities
Design and
Documentation
Construction
Pre-Commissioning &
Commissioning
Cut-in & Biological
Development
Process
Optimisation
OPERATION
Gladstone Regional Council
1770/Agnes Water
Optional Extension
(5 yrs)
Optional Extension
(5 yrs)
Handback
Secondary
Aceptance Testing
Operations of new
Facilities
Operator takes over operations from Council
Core Term
Aceptance
Testing
Termination