Commission, for setting developer charges in development services schemes It is proposed that a core set of miscellaneous prices will be subject to the
12.6 Form of price control
At this stage, Melbourne Water proposes to use individual price caps for its waterways and drainage, diversions and miscellaneous services over the 2008 regulatory period. This continues the approach used during the 2005 regulatory period and means that each of the prices approved by the Commission will be escalated annually by applying the ‘CPI+X’ formula with no rebalancing between prices within the regulatory period. It will provide customers with certainty regarding the prices they will face in the future.
In addition, Melbourne Water proposes to continue to use the Commission’s drainage pricing principles for its special drainage areas to facilitate the reform of prices for these areas over the 2008 regulatory period. Pricing principles are also recommended for development service schemes and the stormwater quality offsets program.
Waterways Condition
Issue Regulatory Instrument Relevant SOO
Clause Required Standard Business response Key Activities over Water Plan Period
Capital Expenditure ($M) WP Opex Environment Existing Obligations
Managing waterways Water Act, SEPPs (WoV, schedules), Managing Waterways section of the Waterways Operating Charter,
Regional River Health Strategy and Addendum, Melbourne Water Waterways Water Quality Strategy
SOO Part 6, River and Aquifer Health
10-year goal from the Waterways Operating Charter
To have 50% of rivers and creeks in good or excellent condition by 2015 (as measured by the Index of River Condition)
Guided by river health target outcomes set out in the Waterways Operating Charter with priorities set consistent with:
Regional River Health Strategy and Addendum Waterways Water Quality Strategy
River and creek management works to achieve implementation targets and regional programs in the Regional River Health Strategy - Addendum
This includes implementing monitoring, investigation and research programs to determine changes in river health condition over time, provide information for management decisions, track progress towards achieving targets and address gaps in understanding
Implementation targets for the whole of the waterways boundary area include:
Number of rivers with negotiated environmental flow regimes - 12 Number of rivers with improvements made to environmental regimes - 17 Area of streamside land under management agreements - 10km2 Length of streamside land revegetated - 1026km
Number of fish barriers removed - 31
Length of riparian land subject to weed management - 2042km Numbers of plans developed for rivers and creeks of high social value - 15 Rivers where heritage values are protected or improved - 34
Number of plans developed for rivers and creeks of high environmental value - 11 Number of investigations to fill data gaps in rivers or creeks - 55
Number of sites subject to bed and bank stabilisation - 55 Number of IRC reaches with instream habitat reinstated - 12
$77.5M $148.2M New Obligations Managing Environmental Water Reserve Victorian Government's 'Our Water Our Future', Water Resource Management Act (part 2), Managing Environmental Flows section of the Waterways Operating Charter, Regional River Health Strategy, Central Region Sustainable Water Strategy
SOO Part 6, River and Aquifer Health
Long-term aim from the Waterways Operating Charter
Waterways are managed to ensure sufficient environmental flows to support river health and protect beneficial uses
10-year goal from the Waterways Operating Charter
Significant progress is made towards implementing Environmental Water Reserve recommendations of the Central Region Sustainable Water Strategy and Our Water Our Future
Guided by river health target outcomes set out in the Waterways Operating Charter and implement initiatives identified in 'Our Water Our Future' and the Central Region Sustainable Water Strategy
Activities and programs to manage environmental flows in line with Environmental Entitlements and to meet environmental water reserve outcomes and the Waterways Operating Charter performance targets:
Performance targets include:
Complete an environmental flows study for all major rivers and creeks by 2013 (to identify the required environmental water reserve)
Develop and implement a program to improve environmental flows in major rivers and creeks that currently do not meet agreed scientific flow objectives to enhance existing Environmental Water Reserves and build the capacity of water managers to meet their environmental water reserve obligations
$0.7M
$2.9M
Stormwater Quality
Note: Due to the integrated nature of the water quality program, many programs contribute to the achievement of each implementation target
Issue Regulatory Instrument Relevant SOO
Clause Required Standard
Business response set out in… (under review /
development)
Key Activities over Water Plan Period
Capital Expenditure ($M) WP Opex Environment Existing Obligations Managing water quality
SEPPs (Waters of Victoria, Schedule F6 Port Phillip Bay, Schedule F7 Yarra Catchment, Schedule F8 Western Port and Catchment), Regional River Health Strategy and Addendum, Port Phillip Bay Environmental
Management Plan, Yarra River Action Plan, Managing Water Quality section of the Waterways Operating Charter, Melbourne Water Waterways Water Quality Strategy SOO Part 5, Waterways and Drainage Services - Operating Charter
Long-term aim from Waterways Operating Charter
In collaboration with others, to achieve objectives for water quality in accordance with State environmental protection policies and targets set out in the Regional River Health Strategy and Waterways Water Quality Strategy
10-year goal from Waterways Operating Charter
In collaboration with others, protect and improve water quality to significantly counteract the effects of growth in greater Melbourne and achieve a net reduction in loads for the Port Phillip and Westernport region against 2001 levels
Guided by target outcomes set out in the Waterways Operating Charter with priorities set consistent with: Relevant State environment protection policies Regional River Health Strategy and Addendum Waterways Water Quality Strategy
Incorporates new obligations that form part of the Yarra River Action Plan (which includes a Lower Yarra program)
Water quality programs and works to achieve implementation targets set out in the Waterways Water Quality Strategy and Regional River Health Strategy.
This includes implementing monitoring, investigations and research programs to determine changes in water quality and river health condition over time, provide information for management decisions, track progress towards achieving targets and address gaps in understanding
Implementation targets for the whole of the waterways boundary area include:
Planning for Improved Water Quality
Develop a draft Better Bays and Waterways Plan - 2008
Percentage of programs implemented from the Better Bays and Waterways Plan assigned to Melbourne Water - 100%
New or revised State Government requirements for all industrial, commercial, residential development to meet best practice water quality objectives - 2013
Equipping Agencies, Communities and Industry to Manage Water Quality
Number of training modules delivered under the Clearwater program per year with assistance from Melbourne Water - 10
Percentage of councils with improved performance in delivering sustainable urban water management (as measured by the Council Needs Analysis) - 70%
Number of guidelines and/or tools prepared to assist in the application of best practice stormwater management - 6
Number of rain gardens built in the community with support from Melbourne Water - 10,000 (also contributes to the targeted works
program below)
Decrease in number of rivers and creeks where stock access poses a high risk to water quality - demonstrated decrease
Targeted Water Quality Works
Percentage of actions implemented from council Stormwater Management Plans assigned to Melbourne Water - 30%
Reduction of nitrogen loads in urban stormwater by 2010 - 100 tonnes
Annual reduction in nitrogen loads through the establishment of wetlands for the period 2010 to 2013 - 2 tonnes
Monitoring and Research
Percentage of health risk assessments completed for major rivers and creeks with a high level of recreational activity - 100%
Completion date for delivering the faecal investigations program – 2013
$33.9M $50.7M New Obligations Reduction of pollutant loads in addition to Nitrogen
SEPPs, Regional River Health Strategy and Addendum, Yarra River Action Plan, Melbourne Water Waterways Water Quality Strategy, Managing Water Quality section of the Waterways Operating Charter Revised SOO Part 5, Waterways and Drainage Services - Operating Charter
Long-term aim from Waterways Operating Charter
In collaboration with others, to achieve objectives for water quality in accordance with State Environmental Protection Policies and targets set out in the Regional River Health Strategy and Waterways Water Quality Strategy
Guided by target outcomes set out in the Waterways Operating Charter with priorities set consistent with: Relevant State Environment Protection Policies Regional River Health Strategy and Addendum Melbourne Water Waterways Water Quality Strategy
Expansion of load reduction programs and targeted works to include pollutant load sources other than nitrogen to achieve implementation targets set out in the Waterways Water Quality Strategy and Regional River Health Strategy
Implementation targets include:
Equipping Agencies, Communities and Industry to Manage Water Quality
Develop and commence implementation of a land management program to manage run-off in rural areas - 2009
Targeted Water Quality Works
Number of pollution load hotspots addressed - 8
Percentage of local governments that have committed to water sensitive urban design implementation targets for pollutant loads, flow and effective imperviousness - 50%
Monitoring and Research
Number of new monitoring programs to fill knowledge gaps for toxicants and pesticides - 2
$4.4M $30.2M
Melbourne Water's Department of Sustainability and Environment Key Obligations
Waterways Condition
Issue Regulatory Instrument Relevant SOO
Clause Required Standard
Business response set out in… (under review /
development)
Key Activities over Water Plan Period
Capital Expenditure ($M) WP Opex ($M) Environment Existing Obligations
Managing waterways Water Act, SEPPs (WoV, schedules), Managing Waterways section of the Waterways Operating Charter,
Regional River Health Strategy and Addendum, Melbourne Water Waterways Water Quality Strategy
SOO Part 6, River and Aquifer Health
10-year goal from the Waterways Operating Charter
To have 50% of rivers and creeks in good or excellent condition by 2015 (as measured by the Index of River Condition)
Guided by river health target outcomes set out in the Waterways Operating Charter with priorities set consistent with:
Regional River Health Strategy and Addendum Waterways Water Quality Strategy
River and creek management works to achieve implementation targets and regional programs in the Regional River Health Strategy - Addendum
This includes implementing monitoring, investigation and research programs to determine changes in river health condition over time, provide information for management decisions, track progress towards achieving targets and address gaps in understanding
Implementation targets for the whole of the waterways boundary area include:
Number of rivers with negotiated environmental flow regimes - 12 Number of rivers with improvements made to environmental regimes - 17 Area of streamside land under management agreements - 10km2 Length of streamside land revegetated - 1026km
Number of fish barriers removed - 31
Length of riparian land subject to weed management - 2042km Numbers of plans developed for rivers and creeks of high social value - 15 Rivers where heritage values are protected or improved - 34
Number of plans developed for rivers and creeks of high environmental value - 11 Number of investigations to fill data gaps in rivers or creeks - 55
Number of sites subject to bed and bank stabilisation - 55 Number of IRC reaches with instream habitat reinstated - 12
$77.5M $148.2M
Licensing river diversions
Victorian Government's Our Water Our Future, Water Resource Management Act (part 2), Managing Environmental Flows section of the Waterways Operating Charter, Central Region Sustainable Water Strategy, Customer Charter for Diversion Services
SOO Part 6, River and Aquifer Health, Part 5, Metering
Link to Waterways Operating Charter long-term aim and 10-year goal to manage waterways to ensure sufficient environmental flows to support river health and beneficial uses and make significant progress towards implementing Environmental Water Reserve recommendations of the Central Region Sustainable Water Strategy and Our Water Our Future
Guided by target outcomes set out in the Waterways Operating Charter with priorities set consistent with: Irrigation management initiatives identified in Our Water Our Future and the Central Region Sustainable Water Strategy Regional River Health Strategy
Customer Charter for Diversion Services
Diversions will be managed in accordance with rules specified in stream flow management plans, local management rules or drought response plans, and to meet service requirements in Melbourne Water's Customer Charter for Diversion Services
$0.4M $3.3M New Obligations Managing Environmental Water Reserve Victorian Government's 'Our Water Our Future', Water Resource Management Act (part 2), Managing Environmental Flows section of the Waterways Operating Charter, Regional River Health Strategy, Central Region Sustainable Water Strategy
SOO Part 6, River and Aquifer Health
Long-term aim from the Waterways Operating Charter
Waterways are managed to ensure sufficient environmental flows to support river health and protect beneficial uses
10-year goal from the Waterways Operating Charter
Significant progress is made towards implementing Environmental Water Reserve recommendations of the Central Region Sustainable Water Strategy and Our Water Our Future
Guided by river health target outcomes set out in the Waterways Operating Charter and implement initiatives identified in 'Our Water Our Future' and the Central Region Sustainable Water Strategy
Activities and programs to manage environmental flows in line with Environmental Entitlements and to meet environmental water reserve outcomes and the Waterways Operating Charter performance targets:
Performance targets include:
Complete an environmental flows study for all major rivers and creeks by 2013 (to identify the required environmental water reserve)
Develop and implement a program to improve environmental flows in major rivers and creeks that currently do not meet agreed scientific flow objectives to enhance existing Environmental Water Reserves and build the capacity of water managers to meet their environmental water reserve obligations
$0.7M
Drainage and Flood Protection
Issue Regulatory Instrument Relevant SOO
Clause Required Standard
Business response set out in… (under review /
development)
Key Activities over Water Plan Period
Capital Expenditure ($M) WP Opex ($M) Government / shareholder Amended Obligations Floodplain management
Water Act, Flood Management and Drainage section of the Waterways Operating Charter SOO Part 5, Waterways and Drainage Services - Operating Charter
Provide a safe and effective system for dealing with stormwater run-off by operating and maintaining drainage systems, determining how high floodwaters will rise and how far they will extend and developing and implementing plans to minimise flood damage.
Guided by targets and outcomes set out in the Waterways Operating Charter with priorities set consistent with:
Melbourne Water's Asset Management Framework and associated plans, policies and procedures
Program of drainage works, monitoring, mapping and maintenance activities to meet the Waterways Operating Charter performance target of no instances of asset structural failure that results in significant flooding, damage, disruption or personal injury
$75.7M $65.2M
New Obligations
Flood mitigation Water Act, Flood Management and Drainage section of the Waterways Operating Charter, Port Phillip and Westernport Region Flood Management and Drainage Strategy, Auditor General Victoria Report 'Managing Stormwater Flooding Risks in Melbourne' SOO Part 5, Waterways and Drainage Services - Operating Charter
Long-term aim from the Waterways Operating Charter
To minimise all currently known intolerable flooding risks to public health and safety, property and infrastructure and increase community understanding and preparedness for floods
10 year goals from Waterways Operating Charter
Implement flood protection measures to reduce currently known intolerable flood risks by 30% by 2018
Implement a community flood awareness and preparation program
Support the preparation of Municipal Emergency Management Plans to ensure local government and communities have an adequate understanding of flood risks and are well prepared for flood events, and flood mitigation actions are co-ordinated with Melbourne Water
Guided by targets and outcomes set out in the Waterways Operating Charter with priorities set consistent with:
Port Phillip and Westernport Region Flood Management and Drainage Strategy 2005 performance audit of stormwater drainage in Metropolitan Melbourne
Flood protection works and related programs to achieve Waterways Operating Charter goals and performance targets.
This includes implementing rainfall and streamflow monitoring programs, undertaking research to address gaps in understanding and educating the community about flood related issues
Performance targets for the whole of the waterways and drainage boundary area include:
Flood Mitigation
Currently known intolerable flood risks will be reduced by 10% by 2013
Complete knowledge base
Develop and implement a program to undertake local flood extent and tidal mapping
Flood warning system
Initial notification and subsequent forecast information will be provided to the Bureau of Meteorology for all notifiable flooding events on stipulated waterways
Flood awareness and preparation
Develop and implement a flood awareness and preparation program in partnership with VICSES and local governments
All local governments in the Port Phillip & Westernport region will have Flood Management Plans in place by 2013
Stormwater Quality
Note: Due to the integrated nature of the water quality program, many programs contribute to the achievement of each implementation target
Issue Regulatory Instrument Relevant SOO
Clause Required Standard
Business response set out in… (under review /
development)
Key Activities over Water Plan Period
Capital Expenditure ($M) WP Opex ($M) Environment Existing Obligations Managing water quality
SEPPs (Waters of Victoria, Schedule F6 Port Phillip Bay, Schedule F7 Yarra Catchment, Schedule F8 Western Port and Catchment), Regional River Health Strategy and Addendum, Port Phillip Bay Environmental
Management Plan, Yarra River Action Plan, Managing Water Quality section of the Waterways Operating Charter, Melbourne Water Waterways Water Quality Strategy SOO Part 5, Waterways and Drainage Services - Operating Charter
Long-term aim from Waterways Operating Charter
In collaboration with others, to achieve objectives for water quality in accordance with State environmental protection policies and targets set out in the Regional River Health Strategy and Waterways Water Quality Strategy
10-year goal from Waterways Operating Charter
In collaboration with others, protect and improve water quality to significantly counteract the effects of growth in greater Melbourne and achieve a net reduction in loads for the Port Phillip and Westernport region against 2001 levels
Guided by target outcomes set out in the Waterways Operating Charter with priorities set consistent with: Relevant State environment protection policies Regional River Health Strategy and Addendum Waterways Water Quality Strategy
Incorporates new obligations that form part of the Yarra River Action Plan (which includes a Lower Yarra program)
Water quality programs and works to achieve implementation targets set out in the Waterways Water Quality Strategy and Regional River Health Strategy.
This includes implementing monitoring, investigations and research programs to determine changes in water quality and river health condition over time, provide information for management decisions, track progress towards achieving targets and address gaps in understanding
Implementation targets for the whole of the waterways boundary area include:
Planning for Improved Water Quality
Develop a draft Better Bays and Waterways Plan - 2008
Percentage of programs implemented from the Better Bays and Waterways Plan assigned to Melbourne Water - 100%
New or revised State Government requirements for all industrial, commercial, residential development to meet best practice water quality objectives - 2013
Equipping Agencies, Communities and Industry to Manage Water Quality
Number of training modules delivered under the Clearwater program per year with assistance from Melbourne Water - 10
Percentage of councils with improved performance in delivering sustainable urban water management (as measured by the Council Needs Analysis) - 70%
Number of guidelines and/or tools prepared to assist in the application of best practice stormwater management - 6
Number of rain gardens built in the community with support from Melbourne Water - 10,000 (also contributes to the targeted works
program below)
Decrease in number of rivers and creeks where stock access poses a high risk to water quality - demonstrated decrease
Targeted Water Quality Works
Percentage of actions implemented from council Stormwater Management Plans assigned to Melbourne Water - 30%
Reduction of nitrogen loads in urban stormwater by 2010 - 100 tonnes
Annual reduction in nitrogen loads through the establishment of wetlands for the period 2010 to 2013 - 2 tonnes
Monitoring and Research
Percentage of health risk assessments completed for major rivers and creeks with a high level