an update on the central coast water corporation
DESCRIPTION
An update on the Central Coast Water Corporation. Context to Reform on the Central Coast. 1977 Agreement to share bulk water supply Joint Council & State Government committee State Government reviews Gosford-Wyong Councils’ Water Authority - PowerPoint PPT PresentationTRANSCRIPT
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An update on the
Central Coast Water Corporation
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Context to Reform on the Central Coast
1977 Agreement to share bulk water supply
Joint Council & State Government committee
State Government reviews
1993 Gosford-Wyong Councils’ Water Authority
2004 Government requests review of institutional arrangement
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Review of Institutional Arrangements
• Models for emerging commercial & regulatory expectations
• Councils engaged PwC
• “What was best for community”
• Legally separate corporation– Improve the delivery of water & wastewater services to the community– Enhance the sustainability of the Councils – Create an organisation with focus on commercial & regulatory requirements– Council/community ownership of assets, employment & strategic direction
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Corporate Models
• Corporations under Local Government Act– Subject to Commonwealth Corporations Act– Taxation– Industrial relations
• Statutory corporation– State owned corporation model – Exempt from certain Commonwealth Corporations Act
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Central Coast Water Corporation Act 2006
• Statutory corporation
• Equal social, environmental & commercial objectives
• Owned in equal shares by Councils
• Governed by a majority independent board
• Any profits returned to community through Councils
• Independent price & service level regulation
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Concerns with CCWC Act
• Control over timing of staff & asset transfers
• Scope of asset transfers
• Memorandum of Understanding– Amendments to Act
– Est within 90 days of amendments
– 5 stage approach subject to CBA
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Implementation - Project Dimensions InstitutionalDeveloping legal instruments & a business framework to create a resilient & successful organisation for the community & shareholders
Change Management Winning the hearts & minds of the people, our most valuable assets
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Implementation – Institutional
• Key Instruments– Constitution– Voting Shareholders Agreement– Service Level & Funding Agreement– Joint Works Agreement
• Appointment of Board
• Dissolution of Gosford-Wyong Councils’ Water Authority
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Implementation – Institutional
Cost Benefit Analysis
• Financial implications of Staged vs Full transfer
• Alternative arrangements
• OptionsIntegrated CCWC + Joint Services Business (JSB)
All water & wastewater functions, assets & resources transferred
JSB provides all corporate services to CCWC & Councils
Integrated CCWC (Long term lease) + JSB
Plus Councils lease the assets to the CCWC under a commercial agreement
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Implementation- Change Management
• The Councils’ overall program objectives are:– Maximise benefits for staff, residents & businesses
– Maintain job security & continuity for all permanent Award Staff
– Long term service improvements by changing the way we do business
– To protect & ensure the safety of staff & the community at all times
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Implementation - Change Management
• Cross Council Reference Group
• Staff & union representation
• Communication Strategy
• Road shows
• Intranet
• Transparent & open
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Implementation - Project Governance
• Project Steering Group
• Project Management Office
• Cross Council Working Groups– Water & Sewer– Financial– Information Technology– Human Resources– Fleet
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Current Situation
• IPART Determination
• Independent Local Government Review Panel
• Change of Councils & management
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Observations
• It is HARD!
• Lessons – Agree & understand the intent, purpose & vision
– Agree & commit the resourcing requirements
– Agree the risk appetite & develop a robust business plan for the establishment & delivery of the service
– Agree the most appropriate service delivery model, governance & management structure