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An update on the Central Coast Water Corporation

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

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An update on the Central Coast Water Corporation

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  1. An update on the Central Coast Water Corporation

  2. 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 2004 Government requests review of institutional arrangement

  3. 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

  4. 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

  5. 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

  6. 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

  7. Implementation - Project Dimensions Institutional Developing 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

  8. 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

  9. Implementation – Institutional Cost Benefit Analysis • Financial implications of Staged vs Full transfer • Alternative arrangements • Options Integrated 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

  10. Implementation- Change Management • The Councils’ overallprogram 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

  11. Implementation - Change Management • Cross Council Reference Group • Staff & union representation • Communication Strategy • Road shows • Intranet • Transparent & open

  12. Implementation - Project Governance • Project Steering Group • Project Management Office • Cross Council Working Groups • Water & Sewer • Financial • Information Technology • Human Resources • Fleet

  13. Current Situation • IPART Determination • Independent Local Government Review Panel • Change of Councils & management

  14. 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

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