Rodney Stevens

Disputes over the bulk water supply agreement between Clarence Valley Council and Coffs Harbour City Council have been resolved, with councillors to vote on implementing advisory committees to ensure a new arrangement is established by July.

Since the first bulk water supply agreement was entered into between Coffs Harbour City Council CHCC and the then Lower Clarence County Council in 2004, the arrangement continued until Clarence Valley Council CVC resolved at its February 2021 meeting to revise the agreement when Essential Energy water supply assets at Nymboida were transferred to CVC.

The transfer of Essential Energy assets was completed in July 2021 and since that time negotiations have been held with CHCC regarding the updating of the bulk water supply agreement, which expires in July 2023, to reflect current operational and future capital requirements.

The current bulk water supply agreement did not specify the financial arrangements between the councils, which the revised agreement will detail.

“Due to the increasing cost of electricity, the draft revised agreement proposes different operational arrangements to those specified in the current agreement to minimise pumping costs, which may include increased return flow from CHCC to CVC,” the CVC April meeting agenda states.

“The draft agreement proposes that the financial arrangement for return flow be included in the agreement in addition to the financial arrangements for supply from CVC to CHCC.”

CVC sought advice from Marsdens Law Group regarding the most appropriate governance arrangements for the Regional Water Supply RWS.

“In previous discussions with CHCC, a Section 355 Committee had been suggested as the preferred governance arrangements, but Marsdens has suggested that an advisory committee established within the Agreement, is a more appropriate arrangement,” the CVC April meeting agenda states.

At its December 2022 meeting, CVC resolved to enter into dispute resolution procedures with CHCC regarding the bulk water supply agreement.

Then, at the March CVC meeting, council resolved to defer the matter to enable discussions between CVC and CHCC, which resulted in council including points three to six in the officer’s recommendation councillors will vote on.

“Following correspondence between the two Councils it is considered that the issues in dispute have been concluded and that an updated bulk water supply agreement can be progressed,” the CVC April meeting agenda states.

At the April 18 CVC meeting to be held at the Maclean Chambers, councillors will vote on the officer’s recommendation that council:

1. Note the issues raised with Coffs Harbour City Council in accordance with the dispute resolution procedures of the Bulk Raw Water Supply Agreement are considered to have been concluded.
2. Note the advice from Marsdens Law Group that a formal agreement with Coffs Harbour City Council is the most appropriate governance arrangement for the Regional Water Supply, and
3. Establish a Bulk Raw Water Supply Agreement Advisory Committee (supported by two staff with technical expertise/responsibility for water supply functions), the membership of which is the mayor and a councillor nominated by the Council.
4. Invite Coffs Harbour City Council to nominate its mayor and an elected member and two staff with technical expertise/responsibility for water supply functions to join the Bulk Raw Water Supply Agreement Advisory Committee.
5. Note that the Bulk Raw Water Supply Agreement Advisory Committee has a sunset clause that intends its dissolution by 30 June 2023.
6. Note that the sole purpose of the Bulk Raw Water Supply Agreement Advisory Committee is to consider the draft Bulk Water Supply Agreement inclusions and in a timely manner that supports a recommendation being made to each Council on the final agreement for endorsement by July 2023.

The Independent will report on the result of the vote in the April 25 edition.