Melbourne Water Corporate Plan - 2017/18 to 2021/2022
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Melbourne Water Corporate Plan 2017/18 to 2021/2022
Melbourne Water 990 La Trobe Street, Docklands, Vic 3008 PO Box 4342 Melbourne Victoria 3001 Telephone 131 722 Facsimile 03 9679 7099 melbournewater.com.au ISBN 978-1-925541-06-9 © Copyright May 2017 Melbourne Water Corporation. All rights reserved. No part of the document may be reproduced, stored in a retrieval system, photocopied or otherwise dealt with without prior written permission of Melbourne Water Corporation. Disclaimer: This publication may be of assistance to you but Melbourne Water and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication. All actions in this strategy will be delivered subject to funding.
Corporate Plan 2017 to 2022 Melbourne Water 1
Aboriginal Acknowledgement Melbourne Water respectfully acknowledges the Traditional Owners of the land on which we operate and pays our respect to their Elders past and present. We acknowledge Aboriginal and Torres Strait Islander peoples as Australia’s first peoples and as the Traditional Owners and custodians of the land and water on which we rely. We recognise and value the ongoing contribution Melbourne’s Aboriginal and Torres Strait Islander communities and their rich cultures have to the services Melbourne Water provides. We embrace the spirit of reconciliation, working towards the equality of outcomes and ensuring an equal voice. 2 Melbourne Water Corporate Plan 2017 to 2022
Contents
Executive Summary 4
Healthy People 8
Water Supply 9
Sewerage Services 15
Healthy Places 21
Flood Management & Drainage Services 22
Liveability 26
A Water Sensitive City 30
Healthy Environment 34
Healthy Waterways 35
Creating a Sustainable Region 39
Community Engagement 42
Strengthening our business 44
Customer Focus 46
Inspired People 50
Continuous Improvement 56
Financial Sustainability 66
Corporate Plan 2017 to 2022 Melbourne Water 3
Executive summary
Melbourne Water’s vision is to Enhance Life and Liveability for the community of
Melbourne. Over the next five years we will continue to invest in strengthening our
business and deliver on our vision through our three core pillars of Healthy People,
Healthy Places and Healthy Environment.
Key objectives include:
• planning for the future security of water supply and
resource management alongside developing integrated
water management plans to sustainably support
Healthy People Healthy Places Healthy Environment
Melbourne’s population growth
Strengthening the Co-creating the Enhancing the natural
wellbeing of the world’s most desirable environment • making our community more resilient to floods and
community places to live.
managing the impacts of climate change and urban
Figure 1 – Melbourne Water’s Strategic Direction. development through collaborative partnerships and
education
Melbourne Water is owned by the Victorian Government and has • implementing the Healthy Waterways Strategy to protect
provided safe, secure and affordable water services to Melbourne and improve the quality of our waterways and catchments
for over 125 years. As part of our core services, we treat and and enhance biodiversity in an increasingly urbanised region
supply drinking and recycled water, remove and treat most of
• engaging and supporting Aboriginal communities in water
Melbourne’s sewage, manage waterways and oversee major
management and economic inclusion
drainage systems in the Port Phillip and Westernport region.
• continuing to build stronger relationships with our
We are dedicated to delivering high quality services and customers by establishing a more robust approach to
solutions that are financially and environmentally sustainable, relationship management and servicing their needs through
while contributing to Melbourne’s liveability. We build strong the transformation of our digital platforms
relationships with our customers, stakeholders and suppliers in • maintaining the organisation’s financial sustainability and
the community, government and industry. We also care for the providing a cost effective services to customers.
health and wellbeing of our people.
Managing future challenges
Melbourne Water faces a number of challenges in the continued
delivery of our highly valued services. To remain one of the
world’s most liveable cities we need to embrace the challenges of
a growing city, increasing urbanisation, climate change, evolving
customer expectations, and a changing economy.
Melbourne Water’s Corporate Plan 2017-2022 is a five-year plan
that addresses these key challenges and ensures we continue
to be future focused by driving operational innovation and
efficiencies. Our activities over the 2017-18 to 2021-22 planning
period detail the organisation’s long and short term business
objectives.
4 Melbourne Water Corporate Plan 2017 to 2022
Sustainable Development
Goals
Melbourne Water is a signatory to the United Nations
Global Compact, the world’s largest corporate sustainability
initiative, including supporting the United Nations’ Sustainable
Development Goals. These initiatives aim to mobilise efforts
Healthy People Healthy Places Healthy Environment
worldwide to end all forms of poverty, right inequalities and
tackle climate change. Strengthening the Co-creating the Enhancing the natural
wellbeing of the world’s most desirable environment
community places to live.
The Sustainable Development Goals aim to put the world on a
sustainable path by 2030 and have been adopted globally by
193 countries. The vital role of water in creating and delivering
sustainable communities puts Melbourne Water in a key position
to contribute to this global effort.
These goals align closely with Melbourne Water’s Strategic
Direction, particularly Goal 6-Clean Water and Sanitation,
Figure 2 – Alignment of Sustainable Development Goals to
Goal 11-Sustainable Cities and Communities, and Goal 15-
Melbourne Water’s Strategic Direction.
Life on Land.
The interdependent nature of the goals means that by delivering our Strategic Direction, Melbourne Water will also contribute across
all 17 goals.
Creating the world’s most liveable city is a collaborative effort. As such the Sustainable Development Goals will provide us, as well as
our stakeholders and customers, with a common framework to deliver ongoing community wellbeing and a sustainable, well managed
environment for future generations.
Figure 3 – United Nations’ Sustainable Development Goals
Corporate Plan 2017 to 2022 Melbourne Water 5
Healthy people, Healthy places, Healthy environment 6 Melbourne Water Corporate Plan 2017 to 2022
Corporate Plan 2017 to 2022 Melbourne Water 7
Healthy people
Strengthening the wellbeing of the community
Melbourne is a vibrant city of more than four million people. By operational advice on the status of our water supply system. In
2065 the population of Melbourne and the surrounding region the last 12 months we also completed the first of three stages of
is expected to almost double in size, increasing the demand for the $350 million Western Treatment Plant upgrade, which will
water and sewerage treatment. enable it to continue to treat Melbourne’s sewage to the highest
standards expected by the community.
Melbourne Water delivers on its Healthy People pillar by
providing safe, affordable, world-class drinking water and sewage The pressures of population growth and climate change will
treatment. We also protect public health and strengthen the remain a challenge to our organisation. We will continue to
wellbeing of our community. address and manage these challenges by understanding how our
city is changing physically so we can deliver appropriate water
A significant step forward for Victoria’s grid was made when the infrastructure. We are developing a broad range of strategic
59km Melbourne to Geelong pipeline was switched for the first priorities to maximise the water available to the community.
time in April 2016, allowing for the transfer of 6 gigalitres water These include stormwater harvesting, reusing effluent from our
to relive pressure on the region’s water supply. treatment plants for renewable energy, using water from the
Victorian Desalination Plant, increasing connectivity across the
Melbourne Water helped inform the Victorian Government’s water supply system, and improving access to natural spaces and
recent desalinated water order by providing technical and recreational facilities.
8 Melbourne Water Corporate Plan 2017 to 2022Water Supply
As Melbourne grows, the community will continue to receive safe, secure, affordable,
world-class drinking water.
157,000 ha 10 STORAGE
RESERVOIRS 432 GL
PROTECTED TOTAL CAPACITY HIGH QUALIT Y
CATCHMENTS
1812 BILLION D R I N K I N G W AT E R
LITRES
DELIVERED TO CUSTOMERS
IN THE YARRA RANGES AND THE COMMUNITY
14 WAT E R
TREATMENT
PLANTS
38 SERVICE
RESERVOIRS 221 KM AQUEDUCTS
1051 KM WATER MAINS
Safe and secure water supply services are fundamental to life and activities. Water from open catchments is treated through a
liveabilty in Melbourne and the surrounding region. Melbourne sophisticated filtration process. We operate two large filtration
Water manages the sources and wholesale supply of high-quality plants that treat water from open catchments - Winneke Water
drinking water for metropolitan Melbourne. Most of the city’s Treatment Plant and Tarago Water Treatment Plant.
drinking water comes from protected water catchments in the
Yarra Ranges, forested areas located in national parks, and state We use advanced monitoring, filtering and treatment processes
forests. to ensure Melbourne’s drinking water consistently meets the
Australian Drinking Water Guidelines. Over the 2017-18 to 2021-
Water quality 22 planning period, Melbourne Water will continue to monitor,
assess and manage drinking water quality. Key projects include
Melbourne is known to have some of the highest quality drinking $20 million of water quality mechanical and electrical assets
water in the world. Managing water quality to protect public upgrades and a new $40 million ultraviolet disinfection system
health remains a high priority for Melbourne Water. at the Winneke Treatment Plant.
Melbourne is one of the few cities in the world with protected Supply Network
water catchments located in forested areas in the Yarra Ranges.
These native forests filter rainwater as it flows across land into Melbourne has 10 major storage reservoirs. Water from these
creeks, rivers and reservoirs, requiring very little treatment. About reservoirs is distributed across the Melbourne region via large
20 per cent of Melbourne’s water comes from open catchments pipes called distribution mains to smaller service reservoirs.
that contain mixed land uses such as farming and recreational These 38 service reservoirs, situated throughout metropolitan
Corporate Plan 2017 to 2022 Melbourne Water 9Melbourne, provide short-term storage of one to two days to ensure a constant water supply during peak demand periods. Thousands
of mostly underground pipes then carry this water in a web-like network to metropolitan retail water businesses, which supply water to
homes, school and businesses.
Supplying our customers
Melbourne Water supplied 432 gigalitres¹ Water supply forecast over the 2017-18 to 2021-22 planning period²
of high quality drinking water to our retail
customers.
Forecast Water Demand 2017/18 - 2021/22
Western
Water
Yarra Valley
Water
South East
Water
City West
Water
- 100.00 200.00 300.00 400.00 500.00 600.00 700.00 800.00
Volume (GL)
1. Based on 2015-16 retail water consumption
36.9% Yarra Valley Water 160 GL 2. Based on ESC final decision on Melbourne Water’s 2016 Price Submission
35.7% South East Water 154 GL
25.8% City West Water 112 GL
1.3% Western Water 5.6 GL
0.2% Gippsland Water 0.9 GL
0.1% Barwon Water 0.3 GL
Over the 2017-18 to 2021-22 planning period we will continue As part of our commitment to renewable energy initiatives, a
to focus on upgrading and maintaining our supply network to further five new plants were commissioned and added in 2016-17
meet the expectations of Melbourne’s growing population. Key to the existing nine mini hydro-electricity plants for reservoirs
projects include: in Wantirna, Boronia, Dandenong, Mount Waverley and Cardinia
• $47 million to renew water supply aqueducts, improve Creek.
water quality and increase their service life to 150 years
All 14 mini hydro-electricity plants will generate up to 69,600
• $39 million to increase capacity at Winneke Treatment
megawatt hours of electricity per year and offset over 75,800
Plant
tonnes of carbon dioxide emissions annually, which is equivalent
• and $33 million to upgrade the M41 Water Main Alignment to taking more than 29,200 cars off the road.
from Merri Creek in Northcote to Wellington Parade in East
Melbourne. We will continue to explore opportunities to add more hydro-
electric power stations to our operation. For more detail please
Mini hydro-electricity plants refer to Strategic Priority: Carbon Emission Pledge in the Healthy
Environment chapter.
Mini hydro-electricity plants operate throughout Melbourne’s
water supply network. These plants generate renewable energy Victorian Desalination Plant
from the flow and pressure of moving water and feed it back into
the electricity grid. Desalination complements Melbourne’s catchments and
reservoirs by providing a secure, rainfall-independent source of
10 Melbourne Water Corporate Plan 2017 to 2022water for Melbourne. The Victorian Desalination Plant (VDP) The Minister for Water has announced a minimum order of
is capable of supplying up to 150 gigalitres of high quality 15 gigalitres per year from the VDP for the next three years.
drinking water each year, significantly increasing the security Additional water orders will be determined annually over the
of Melbourne’s water supply during periods of low rainfall and 2017-18 to 2021-22 planning period.
mitigating the long-term impacts of climate change.
Water supply pipelines and aqueducts
Retail water area boundary
Water supply catchment area
Water supply storage reservoir
2
1
Water supply 3 5
Western Water 4
6
storage reservoirs: (Sunbury)
1 Greenvale City West Yarra Valley Water
Water 7
2 Yan Yean Western Water
(Melton)
3 Sugarloaf 9
Barwon Water Southern Rural Water
4 Maroondah
8 (Macalister Irrigation District)
5 O’Shannassy Gippsland Water
10
(Neerim South)
6 Upper Yarra
Gippsland Water
7 Thomson (Warragul)
Port Phillip Bay
8 Tarago
South East Water
9 Silvan
Western Port
10 Cardinia
Bass Strait
from Victorian Desalination Plant
Figure 4 – Melbourne’s water supply map.
2017-18 to 2021-22
$4,705M
FORECAST REVENUE FOR WATER SUPPLY SERVICE
$448M
PLANNED CAPITAL EXPENDITURE FOR WATER SUPPLY PROJECTS
17.8% OF MELBOURNE WATER CAPITAL EXPENDITURE
$1,055M
DIRECT OPERATING EXPENDITURE
21.34% OF MELBOURNE WATER’S TOTAL EXPENDITURE
Corporate Plan 2017 to 2022 Melbourne Water 11Capital program
Total planned capital expenditure on water supply projects over the 2017-18 to 2021-22 planning period is $448 million, which
accounts for 17.8 per cent of Melbourne Water’s total capital expenditure.
The water supply capital program is mostly driven by renewals of water transfer pipelines, mechanical and electrical assets as well as
some growth and compliance projects. From 2016-17 to 2018-19 the capital delivery program will focus on maintaining and renewing
pipelines such as the M40 and M41 mains to ensure safe and secure water supply to Melbourne’s inner north and eastern suburbs,
followed by an increase in capital expenditure in 2019-20 for major aqueduct renewals, and capacity upgrades at Winneke Treatment
Plant. This capital expenditure is shown in Figure 5 and key significant projects are detailed in Appendix C.
5 Year Corporate Plan by Product
160.0
Corporate Plan $448M
140.0
120.0
100.0
Nominal $'M
80.0
60.0
40.0
20.0
0.0
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
Figure 5 - Water capital projects for the 2017-18 to 2021-22 planning period.
Revenue and expenditure
Forecast water supply services revenue for the 2017-18 to 2021-22 planning period is $4,705 million while total direct operational
expenditure is forecast at $1,055 million, which accounts for 21.34 per cent of Melbourne Water’s total operating expenditure. Figure
6A and 6B show the breakdown of capital and operational expenditure for water supply.
Labour $115.5M
External Services $138.7M
Materials $32.6M
Compliance $ 71.4M
Information Technology $0.9M
Growth $41.9M
Energy $41.5M
Renewals $273M
Fees and Charges $9.4M
Strategic/Risk Mgt $61.9M
Transport $1.5M
Other $4.9M
Land Tax $49.6M
Victorian Desalination
Plant $660.1M
Figure 6A and 6B - Breakdown of capital and direct operational expenditure for water supply.
12 Melbourne Water Corporate Plan 2017 to 2022Strategic Priority: Melbourne Water’s Drinking Water Quality Strategy
Melbourne Water’s Drinking Water Quality Strategy (DWQS) is a 20 year strategy that outlines how we will continuously
deliver safe drinking water. The strategy is currently being finalised and an implementation plan will be introduced from
mid-2017.
Key focus areas include:
• establishing strategic objectives, levels of service and guiding outcomes
• guiding policy, planning, capital investment, operational improvements and research
• aligning business activities for improved drinking water quality outcomes.
The DWQS implementation plan will ensure Melbourne Water delivers on its commitments under the Healthy People
pillar in the Strategic Direction and the Public Health Policy by ensuring we have continuity of supply and effective source
management. We will also leverage our approach to innovation and our leadership position in the community and industry.
Strategic Priority: Melbourne Water System Strategy
As a growing city with a changing climate, Melbourne faces a number of key challenges to secure water resources for
the city and surrounds. The Melbourne Water System Strategy outlines a portfolio approach to meeting these challenges,
including making the most of the water supply system, using water efficiently, and harvesting diverse sources of water such
as rainwater, stormwater and recycled water – supported by the water grid and the water market.
The strategy identifies a series of key directions and opportunities for Melbourne Water over the next 50 years and is
structured around two key groups of challenges, followed by four portfolio elements to address these challenges as shown
in Figure 7.
Our growing Making the Our changing
Using water Using diverse
and changing most of the water and variable
efficiently sources of water
region supply system climate
Optimising the water grid and market
Figure 7 – How the Melbourne Water System Strategy will address Melbourne’s future water resource management needs.
The Melbourne Water System Strategy also outlines Melbourne Water’s contribution to relevant policy directions set by
Water for Victoria, the Victorian Government’s water plan.
It includes more than 35 actions to help manage the water resource challenges Melbourne faces over the next 50 years.
Although some of these actions will be delivered solely by Melbourne Water, the majority will be delivered in partnership
with our customers and stakeholders.
Corporate Plan 2017 to 2022 Melbourne Water 13Strategic Priority: Melbourne Water System Strategy (cont)
The strategy’s key focus areas and actions for managing Melbourne’s water resources efficiently, securely and affordably are
listed below.
Key Focus Area Key Action Items
Growing and changing region Explore opportunities to use our land to reduce the urban
heat island effect, improve demand forecasts and link core
services across the water cycle.
Changing and variable climate Invest in climate research and operationalise outcomes,
become a net-zero greenhouse gas business and define
climate risks on the environmental values of waterways and
wetlands.
Making the most of the water supply system Update annual operational planning to meet customer
needs, improve transparency and address climate change.
Review the desalinated water order advice development
process, identify potential improvements to the way we
deliver environmental water and drive integration between
water supply system models used by Melbourne Water and
our retail water corporation customers.
Using water efficiently Support the retail water corporations to deliver the Target
155 program, collaborate to deliver research on water
efficiency into the future and periodically review storage
levels and outlook zones. When necessary, implement the
Drought Preparedness Plans for Melbourne.
Using diverse sources of water Collaborate through integrated water management forums
and plans to deliver up to 80 gigalitres/year from diverse
sources by 2065.
Investigate use of diverse water sources to deliver
environmental water and enhance capabilities to model
diverse sources of water.
Optimising the water grid market Support the development of a water grid oversight function.
Identify and evaluate potential long-term options that could
add capacity to the water grid and develop a water resources
information management plan.
14 Melbourne Water Corporate Plan 2017 to 2022Sewerage Services
We will continue to safely treat our sewage to protect public health and enhance
environmental outcomes.
400 KM OF SEWERS
9 SEWAGE
PUMPING
STATIONS
60% SEWAGE
TREATMENT 40%
12
WESTERN EASTERN
AI R T R E AT M E N T
PL ANT
T R E AT M E N T
PL ANT
TREATMENT
FACILITIES WERRIBEE BANGHOLME
Fast, efficient and safe removal of sewage from our houses and businesses is fundamental to a modern city. Sewage is no longer
simply a waste product. In the face of climate change and thanks to new technology, Melbourne Water is turning sewage into valuable
resources such as recycled water and biogas (renewable energy).
Sewage treatment
Melbourne Water’s sewage treatment system consists of two main treatment plants – the Western Treatment Plant in Werribee and
the Eastern Treatment Plant in Bangholme.
Western Treatment Plant
Located in Werribee, the 10,500 hectare Western megawatt hours of renewable electricity every year, which
Treatment Plant (WTP) is the world leader in technical prevents the emissions of 52,800 tonnes of carbon dioxide.
and environmental innovation. It treats approximately 60
per cent of Melbourne’s sewage and produces almost 40 Over the 2017-18 to 2021-22 planning period, a three
gigalitres of recycle water a year. stage investment program will continue at WTP. The $107
million Stage 2 capacity upgrade commenced in 2017 and
It features a system of lagoons that gradually break down includes the installation of a nitrogen removal plant. This
organic matter in water using bacteria. It’s an approach new plant is a technical and environmental innovation
to treatment that is very low in energy consumption and, for WTP as it is designed to be more energy efficient and
when combined with onsite methane power generation and incorporates advanced monitoring and control treatment
the use of recycled water for irrigation, makes WTP one of process.
the lowest cost treatment plants in the world.
Other major WTP investment programs include renewal of
WTP is nearly energy self-sufficient, producing about 70 the activated sludge plant and drying pans.
per cent of its own electricity needs. It generates 48,500
Corporate Plan 2017 to 2022 Melbourne Water 15Eastern Treatment Plant
The Eastern Treatment Plant (ETP) is situated on a 1,100 water produced at ETP and reduced the impact on the
hectare site and treats approximately 40 per cent of local marine environment at Boags Rocks, where treated
Melbourne’s sewage from the south-eastern and eastern water is discharged to the ocean. ETP also uses biogas to
suburbs. power 26 per cent of its electricity needs. The plant’s seven
generators can run solely on biogas or can be supplemented
ETP is known for adopting leading technology which by natural gas as needed. ETP generates 35,600 megawatt
includes an active mechanical and chemical approach to hours of renewable electricity, which prevents the emissions
treat sewage. of 38,800 tonnes of carbon dioxide.
After completing its major upgrade in 2012, ETP is now Over the 2017-18 to 2021-22 planning period, the
Melbourne Water’s most complex and diverse treatment investment program will focus on the renewal of
plants. These works have improved the quality of recycled mechanical and electrical components.
Sewage transfer
In addition to our two treatment plants, Melbourne Water also manages and operates 400 kilometres of large diameter pipes that
convey sewage from our retail water corporation customers to these treatment plants.
Over the 2017-18 to 2021-22 planning period we will continue to make significant investments to reduce sewerage system overflows
and leakage from treatment processes. Key project include $35 million in rehabilitation works for the Hobson Bay and Yarra Crossing
sewerage main pipeline.
Melbourne Water’s sewerage network and treatment plants are shown in Figure 8.
Sewerage transfer pipeline
Sewerage system outlet
Retail Water area boundary
Sewerage treatment plant
Northern Yarra Valley Water
Diversion
Melbourne Sewer
Main Sewer North Yarra East Main
Sewerage pump station: City West North Yarra Main
Water West 3 South
1 Hoppers Crossing Sewer Eastern
Western 2
Trunk
2 Brooklyn Trunk
1 4
3 Kew Hobson
Bay Main Dandenong
4 North Road Valley Trunk
Western 5 7
Treatment Plant 6
5 Mordialloc No. 2 9 South East Water
8
Eastern
6 Mordialloc No. 1 Port Phillip Bay Treatment Plant
7 Mordialloc Wet Weather
8 Bondi Road
ll
tfa
Western Port
Ou
9 Eastern Treatment Plant
rn
s te
Ea
uth
So
Bass Strait
Figure 8 – Melbourne Water’s sewerage network.
16 Melbourne Water Corporate Plan 2017 to 20222017-18 to 2021-22
$2,316M
FORECAST REVENUE FOR SEWERAGE SERVICE
$927M
CAPITAL FOR SEWERAGE PROJECTS
37% OF MELBOURNE WATER’S TOTAL CAPITAL EXPENDITURE
$570M
DIRECT OPERATING EXPENDITURE
11.5% OF MELBOURNE WATER’S TOTAL EXPENDITURE
Capital program
Total planned capital expenditure on sewerage projects over the 2017-18 to 2021-22 planning period is $927 million, which accounts
for 37 per cent of Melbourne Water’s total capital expenditure. The sewerage capital program is mostly driven by renewals and growth
projects. Over 2017-18 to 2018-19 the capital program will focus on WTP capacity upgrades while in 2021-22 the focus will be on
the WTP activated sludge plant upgrade. Capital projects for the 2017-18 to 2021-22 planning period are shown in Figure 9 and key
significant projects are detailed in Appendix C.
5 Year Corporate Plan by Product
300.0
Corporate Plan $927M
250.0
200.0
Nominal $'M
150.0
100.0
50.0
0.0
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
Figure 9 - Key sewerage capital projects for the 2017-18 to 2021-2022 planning period.
Corporate Plan 2017 to 2022 Melbourne Water 17Revenue and expenditure
Forecast sewerage revenue for 2017-18 to 2021-22 planning period is $2,316 million while operational expenditure is $570 million. This
accounts for 11.5 per cent of Melbourne Water’s total operating expenditure. Figures 10A and 10B show the breakdown of capital and
direct operational expenditure for sewerage.
Labour $104.1M
External Services $228.4M
Compliance $157.7M Materials $12M
Growth $229.2M Information Technology $0.8M
Energy $167M
Renewals $435.9M
Strategic/Risk Mgt $104.3M Fees and Charges $17.5M
Transport $2.2M
Other $1.7M
Land Tax $35.8M
Figures 10A and 10B - Breakdown of capital and direct operational expenditure for sewerage.
Strategic Priority: Melbourne Sewerage Strategy
As well as focusing on long-term water resource Environment, Land, Water and Planning (DELWP). The
management, Melbourne Water will continue to protect adaptive planning approach will be used to help develop a
public health and enhance environmental outcomes by robust strategy that addresses a range of strategic issues
treating sewage safely. including waste management, fit-for-purpose water and a
healthy environment.
Stemming from the release of the Victorian Government’s
water plan, Water for Victoria, Melbourne Water will The Melbourne Sewerage Strategy is due to be completed
develop a long-term sewerage strategy by September 2018 by September 2018.
to address climate change and population growth and
reflect the Statement of Obligations.
The main focus of the strategy will be to review
Melbourne’s overall sewerage system including transfer
and treatment as well as its adaptability to the sewage
requirements of a rapidly growing city. The strategy will
also look at how to support the broader community in a
sustainable, fair and cost effective way.
Work on the Melbourne Sewerage Strategy commenced
in January 2017 with a series of workshops with key
stakeholders including metropolitan retail water
corporations, Western Water, Environment Protection
Authority Victoria (EPAV) and the Department of
18 Melbourne Water Corporate Plan 2017 to 2022Strategic Priority: Western Treatment Plant Future Land Use Plan
The Western Treatment Plant treats about half of the long-term economic, social and environmental values
Melbourne’s sewage, providing an essential public health of the Western Treatment Plant for the benefit of the
service. It is a world leader in environmentally sensitive community. The plan also embraces the opportunity
sewage treatment, an internationally recognised haven to add further value by drawing on waste streams to
for wildlife, an environmentally sustainable farm and a recover resources, enhancing renewable energy, building
well-loved site visited by thousands of people each year. on the existing agricultural business and providing more
opportunities for ecotourism and recreation.
The Western Treatment Plant (WTP) Future Land Use Plan is
a plan that Melbourne Water has developed to maximise
An environmentally sustainable
farm that supports sewage
treatment and the biodiversity
conservation values
An internationally recognised
haven for wildlife and unique
endangered species
A world leader in environmentally
friendly sewage treatment
A well loved site visited by
thousands of people each year
Corporate Plan 2017 to 2022 Melbourne Water 19Strategic Priority: Western Treatment Plant Future Land Use Plan (cont.)
Leading the way forward
Over the 2017-18 to 2021-22 planning period, Melbourne Water will continue to develop the site and pursue innovative
technologies that provide financial, social and environmental benefits. Collaboration with others is essential and Melbourne
Water will explore partnerships and business models to develop future projects.
Federation trail
Western Grasslands Werribee
Reserve e
urn
elbo Werribee
To M
Zoo
Outer metropolitan
ring transport corridor
Recycled water Werribee Irrigation
plant expansion District
Werribee
River
AY Park
W
REE
SF Cocoroc
CE
IN
PR Increased treatment
Northern area to cater for future
Grasslands growth, renewable
energy and resource
recovery
Wyndham
Ryan's Harbour
Swamp
Green corridor
may include cycle/
walking paths
Main treatment precinct
including main lagoons, power
generation and biosolids
g
lon
Gee
To
Port
Boat ramp Phillip
Bay
Public access to core precinct for
Kirk Point ecotourism, recreation and
biodiversity conservation facilities.
Avalon airport Significant coastal saltmarsh grows
along the foreshore from the
The Spit Beach Rd boat ramp to The Spit
20 Melbourne Water Corporate Plan 2017 to 2022Healthy places
Co-creating the world’s most desirable places to live
At Melbourne Water we consider that liveability reflects the Climate change is expected to increase flood risks due to more
wellbeing of a community and the many characteristics that frequent intense rainstorms and rising sea levels. It is estimated
make a city a place where people want to live, now and in the that approximately 232,000 properties in our region have a
future. 1 per cent chance of flooding in any given year. The annual
average damage caused by floods in our region is approximately
Melbourne Water is a custodian of over 33,000 hectares of land $400 million and the consequences of floods are serious for
in the Port Phillip and Westernport region and we support our communities living in affected areas.
Healthy Places pillar by managing the impacts of climate change,
protecting the region from floods and facilitating enhanced In 2015-16 we implemented the flood mapping program which is
public access to nature and green spaces. designed to better understand and reduce the effects of floods.
Through this program flood mapping tools have identified the
We enhance Melbourne’s reputation as the ‘world’s most risk of flooding across the region and increased our knowledge
liveability city’ by opening up our land for community use, where of Melbourne’s drainage network. Over the 2017-18 planning
it is safe to do so. A recent example of this work is the role we period, we will continue to focus our efforts in areas of greatest
played in establishing the Greening the Pipeline (GTP) project. risk by investing in new drainage infrastructure. The Flood
GTP was initiated in 2015-16 to revitalise industrial land in Management Strategy will focus on building collaboration
Melbourne’s West into recreational open space and in April 2017 between organisations that contribute to flood management and
we successfully launched the first pilot community parkland help engage the community to build resilience and awareness.
for GTP in Williams Landing. We will continue to reimagine the
remaining sections of the project to transform the GTP into a
natural, vibrant public asset for Melbourne’s west.
Corporate Plan 2017 to 2022 Melbourne Water 21Flood management and drainage services
We will continue to make our region resilient to floods and manage the impacts of
climate change and urban development.
Flooding in our region
The Port Phillip and Westernport region
The region includes almost all of the Port Sunbury
Phillip and Westernport catchments, and Healesville
is home to over four million people.
Legend: Melbourne
Werribee
Stormwater flooding Dandenong
Riverine flooding Port Phillip Bay
Coastal flooding
Geelong
Established urban areas
Growth corridors
Bass Strait
Figure 11 - Flooding in the Port Phillip and Westernport region
Melbourne Water is the floodplain manager for the
Melbourne Water and the VICSES
Port Phillip and Westernport region and we have the
responsibility of identifying and reducing flood risk to
protect the community. Melbourne Water’s 10 year partnership with the VICSES
focuses on developing key information and educational
We work collaboratively with 38 Melbourne metropolitan campaigns to increase flood awareness, preparedness
councils and the Victorian State Emergency Services and support community resilience. Targeted flood
(VICSES) on flood management plans and provide flood education and awareness will continue over the 2017-
advice on new developments and lead projects to address 18 to 2021-22 planning period with regular assessment
existing and future flood risks across Melbourne. of the program effectiveness and community support.
Through our Flood Management Strategy - Port Phillip
and Westernport, we will continue to build our collective
knowledge and capability, drawing on a wide range of flood
management approaches to better address community
concerns, minimise the effects of floods and manage the
challenges of urban growth and climate change. Refer to
Strategic Priority: Flood Management Strategy for more
information.
22 Melbourne Water Corporate Plan 2017 to 2022We help reduce the risk of floods by: Rising sea levels
• maintaining 1618 kilometres of stormwater drains
Rising sea levels are likely to have an impact on flooding in the
• managing and upgrading 230 retarding basin Port Phillip and Westernport region. Melbourne Water is working
• developing flood mapping and modelling with the Victorian Government and local councils to address
rising sea levels through initiatives and research projects such as:
• building new flood protection assets
• sea level rise assessments of developed areas along
• managing waterways to help reduce the impacts of flooding
coastlines
• raising awareness of flood risks and responses through
• the Australian Rainfall and Runoff Review
education programs
• flood modelling around climate change scenarios
• providing data for warning systems
• a business-wide Climate Change Adaptation Strategy.
• assessing and placing conditions on town planning permits.
Council drainage networks MWC drainage network Council boundaries MWC Drainage and Waterway boundaries
Figure 12 - Melbourne Water and council drainage networks
Capital program
Over the 2017-18 to 2021-22 planning period Melbourne Water will continue to minimise the damage caused by floods to our
community through our capital and development planning. Total planned capital expenditure on flood and drainage program is $270
million, which accounts for 10.7 per cent of Melbourne Water’s total capital expenditure. Capital projects for the 2017-18 to 2021-22
planning period are shown in Figure 13 and key significant projects are detailed in Appendix C.
Corporate Plan 2017 to 2022 Melbourne Water 23Figure 13 Figure 14
5 Year Corporate Plan by Product
70.0
Corporate Plan $270M
60.0
50.0
40.0
Nominal $'M
30.0
Compliance $210.2M
20.0
Growth $0M
10.0 Renewals $47.8M
Strategic/Risk Mgt $12.3M
0.0
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
Figure 13 - Key flood capital programs/projects for the 2017-18 to 2021-22 planning period.
Figure 14 - Breakdown for capital expenditure for flood & drainage.
Key flood management and drainage projects:
New flood management strategy
Our new Flood Management Strategy – Port Phillip and Westernport builds on decades of flood management experience and is
aligned with the Victorian Floodplain Management Strategy.
It focuses on building greater collaboration between organisations involved in flood management and is intended to guide
future investment to improve how we manage and reduce flood risks.
Additional investment in drainage infrastructure
Melbourne Water will invest $270 million over the 2017-18 to 2021-22 planning period on drainage infrastructure to reduce
the impacts of flooding on local communities.
Key investment includes:
• Murrumbeena flood mitigation ($38.1 million)
• Retarding basin spillway upgrades ($28.5 million).
24 Melbourne Water Corporate Plan 2017 to 2022New decision-making system to improve flood management
A new Flood Integrated Decision Support System was recently launched to improve decision making around flood
management.
A further $15 million will be invested on flood mapping tools. This will help Melbourne Water provide early and timely
information to the community, emergency services and other stakeholders.
Strategic Priority: Flood Management Strategy
Flood risks have been actively managed in Port Phillip and Westernport for many years. Melbourne Water’s Flood
Management Strategy – Port Phillip and Westernport sets out how we will continue to work with other agencies and the
community to understand, avoid and better manage flood risks. It also outlines how we can support flood emergency
preparation and response, across the Port Phillip and Westernport region.
The flood strategy vision for Port Phillip and Westernport
Together we are aware, responsive and resilient. Communities, business and government understand flooding, plan for
challenges, and take action to manage risks.
Strategic objectives
1. The right information is 2. Flood risks are addressed to 3. Land, water and emergency
available at the right time to reduce impacts and get the best agencies work together to
people who need it. social, economic and environmental manage flooding effectively.
outcomes.
In recent years urban planning and development standards Flood risks are managed by working in areas where the
have been improved to ensure new developments are safe need is greatest and where the benefits of taking action are
from floods and avoid increasing the level of flood waters most cost effective.
on nearby properties.
Through the Flood Management Strategy – Port Phillip and
Flood mapping has also been completed for much of the Westernport, Melbourne Water will use the knowledge and
Port Phillip and Westernport region to understand where experience we have developed over many years to improve
and how often floods may occur, particularly in locations how we work and respond to the future challenges of
where older urban areas were established without climate change and a growing population.
consideration of possible flood risks.
The strategy includes 65 actions to help prioritise and
In areas of new urban development, flood mapping manage current and future flood risks, using the knowledge
information is now used to ensure safe development. It and expertise of all organisations that contribute to
is also used to support flood education, warning systems, managing flood risk. Figure 15 outlines how we will identify
emergency management programs and infrastructure and prioritise flood prone areas and implement the right
improvements. mix of solutions.
Corporate Plan 2017 to 2022 Melbourne Water 25Strategic Priority: Flood Management Strategy
The flood management decision making framework
More information and data will be used to inform the process (e.g. local floods, community needs, costs and benefits and climate change)
Prioritise Assess Prioritise Identify
Develop
and complete flood effects locations best-fit Implementation
options
mapping and risks solution
Community and government input helps inform each step
This diagram shows the decision making framework outlined in the strategy, and how improved information will be used in our processes.
Figure 15 - Flood management decision-making framework.
Liveability benefit of the community. We will also undertake a review of
both of our capital programs to include recreational assessments
on projects to increase community access wherever possible.
Performance targets will be set to measure the community
We will facilitate community access to satisfaction that results from natural and recreational assets
quality open space. situated on Melbourne Water land.
There is strong evidence of a positive relationship between
providing access to safe, green open space and the physical
health and wellbeing of our communities. As Melbourne grows it
is becoming more important to provide opportunities for exercise
such as cycling and walking, community interactions and access
to open outdoor areas.
Recreation occurs on our land in many different forms, from
the reservoir parks (managed by Parks Victoria), formal shared
pathways with management agreements, football ovals
located in retarding basins, BBQ facilities, picnic tables or other
recreational infrastructure constructed on our land as well as
informal walking trails.
Melbourne Water will continue to work collaboratively with
community groups, not-for-profits, and both local and State
government to innovatively use our land and assets for the
26 Melbourne Water Corporate Plan 2017 to 2022Case Study: Our Space, Your Place
Our Space, Your Place is a map-based online application that identifies potential public access to 303,000 hectares of
land managed by Melbourne Water. The app explains details of the availability, size and potential use of our land and
outlines a process for use, with a focus on projects that benefit the community.
The app was tested with customers to ensure it is intuitive and aligned to our Digital Vision of being Safer, Smarter, Faster
and Easier to work with.
Examples of successful projects include:
Use/Activities Status of Application
Community garden run by Hope City Mission. The Lease approved.
community garden aims to help people who struggle to
afford healthy food.
Community garden for youth with disabilities License currently being drafted by Melbourne Water.
Solar powered farm Melbourne Water is currently working with the group Energy
Democracy on finalising lease agreement.
Bee Hive education Lease approved by Melbourne Water. License will be finalised by
2017.
Community garden along the Yarra river for Indigenous Melbourne Water is currently working with the group Yarra Links
revegetation education project on finalising a lease agreement.
Corporate Plan 2017 to 2022 Melbourne Water 27Strategic Priority: Greening the Pipeline Project
The Greening the Pipeline (GTP) project aims to convert 27 kilometres of the heritage-listed decommissioned Main
Outfall Sewer into parkland. Over the next few years the old sewer pipe will be transformed into a vibrant green corridor
that links up communities throughout Melbourne’s west and improve liveability.
The project is a partnership between Melbourne Water, Wyndham City Council, VicRoads and City West Water. It is being
managed by a dedicated project coordinator employed by Wyndham City Council, and co-funded by Melbourne Water
and City West Water. The vision is to create a green public asset that connects communities and provides places for
people to meet, play and relax.
Highlights to date include:
• extensive community and stakeholder consultation
• Williams Landing pilot parkland opened April 2017
• Greening the Pipeline video
Figure 16 - Greening the Pipeline website.
28 Melbourne Water Corporate Plan 2017 to 2022Local residents’ and businesses’ ideas for the future of the pipeline
(121 ideas, 46 supports)
1.8% 1.8%
1.8%
2.4%
2.4%
Active transport infrastructure (27.9%)
Facilities for exercising (13.9%)
Vegetation (13.3%)
3.6%
27.9%
Other (10.9%)
4.2%
Other (Better lighting 7.9%)
Community garden (7.9%)
7.9%
BBQ and picnic areas (4.2%)
Facilities for community events (3.6%)
7.9% Facilities for children (2.4%)
Public art (2.4%)
13.9%
Dog park (1.8%)
10.9% Ponds (1.8%)
13.3% Skate park (1.8%)
Figure 17 - Local ideas for the Greening the Pipeline Project.
Greening the Pipeline five-year priorities Continue to work with key Victorian Government agencies
on projects that could potentially impact the pipeline such
Technical as:
Develop, specific design guidelines and zone master • VicRoads as they develop the Outer Suburban
planning for the pipeline. Arterial Road Project
• Victorian Planning Authority as they develop the East
Funding
Werribee Employment Precinct.
Continue to seek funding for the project including
exploring alternative funding opportunities (i.e. private
Communications and education
funding).
Continue to promote the project, and share lessons
learned with industry.
Consultation
Undertake ongoing consultation with stakeholders such
Research
as local residents, Aboriginal groups and developers, and
Collaborate with CRC for Water Sensitive Cities who want
build on relationships with project partners.
to use the Greening the Pipeline Project as a case study.
Corporate Plan 2017 to 2022 Melbourne Water 29A Water Sensitive City • environmentally: increases the amount of water available
for environmental flows and reduces impacts to the
environment from such things as pollution, stormwater and
Melbourne Water takes an integrated approach to water treated wastewater.
management that brings together all facets of the water cycle
such as water supply, sewerage management, treatment and
The Cooperative Research Centre for Water Sensitive Cities
stormwater – to deliver sustainable benefits for the wider
has established a Water Sensitive Cities (WSC) Index that is
community.
designed to provide a global benchmark against water sensitive
performances and practices. As a result, Melbourne’s WSC index
Diversifying our water services helps strengthen the reliability of
score is 2.5 out 5. To help improve the WSC Index and co-create
water supply through efficient resource use and recovery. Using
the world’s most liveable places, Melbourne Water has set a
alternative water sources to meet demand also makes better
strategic key performance indicator to measure our performance.
use of all the water available to us and saves drinking water for
We are also partnering to deliver innovative solutions in urban
specific purposes where high quality water is needed.
water management such as stormwater capture and urban
Melbourne Water invests in developing alternative sources of
cooling. For more detail refer to Appendix B.
water, primarily through stormwater harvesting and recycling
treated water from sewerage networks.
Stormwater management
We use an integrated water management approach that
Stormwater is rainwater that has fallen onto surfaces such
supports:
as roads or roofs and runs off into the drainage network.
• collaboration with customers and stakeholders to promote
Stormwater harvesting is the collection, accumulation or
new and diverse water resources
treatment of stormwater for reuse.
• integrated water and urban development planning
• finding ways to obtain multiple benefits from our natural Stormwater can be collected and used for many purposes
and built assets including watering sports grounds, parks and gardens, and
• managing the water supply system to meet urban, replenishing wetland habitats.
environmental and agricultural needs Water Sensitive Urban Design (WSUD) is an approach to
planning and designing urban areas that makes use of this
• undertaking long-term planning to address the needs of a
valuable resource and reduces the harm it causes to rivers and
growing population, climate change and variability.
creeks.
Taking a holistic, integrated approach to Melbourne’s water cycle
Melbourne Water is responsible for the licensing of surface
helps in the following ways:
water from some catchments and its own works, which
• socially: provides for public health and safety benefits, includes stormwater licensing to help deliver integrated water
open spaces and sports fields, reduces the urban heat-island management.
effect and improves the resilience of the water supply
system to climate change
• economically: provides affordable services and seeks
opportunities for growth, especially in industry and
agriculture
Case Study: Stormwater Management - Black Forest Road, Werribee
The population of Melbourne is projected to increase from 4.6 million people in 2016 to 6 million people in 2031 and
upwards of 8 million people in 2051. Around 50 per cent of Melbourne’s population growth is expected to occur in
Melbourne’s western suburbs with a projected new 712,000 residents by 2031 alone. With new development comes more
stormwater.
30 Melbourne Water Corporate Plan 2017 to 2022Case Study: Stormwater Management - Black Forest Road, Werribee (cont.)
Water availability is important for the liveability of cities and towns. In addition to meeting our basic drinking water needs
and providing confidence to industry, water is essential for cool, green urban areas. Using diverse water sources will lessen
pressure on drinking water supplies, increase urban water security and help keep our cities and towns liveable through
drought.
Urban development proposed for the Black Forest Road area within the Lollypop Creek catchment is 894 hectares (total
developed area including existing urban area will be 1,216 hectares). The area contains three Precinct Structure Plans. The
key water cycle issue is the effective management of excess stormwater as urban growth proceeds.
Melbourne Water is working with developers, the local council and the retail water company to develop a stormwater
management plan that protects internationally significant habitat from damage by stormwater and makes use of the
alternative water for non-drinking uses such as toilet flushing or irrigation of both private and public open space.
Stormwater flows will be managed through an integrated system that generally maintains flows beyond the precinct
to pre-development levels. The precinct will require a range of constructed open waterways linked to a network of
wetland/retarding basins. These areas could become important and functional parts of the precinct’s open space network,
particularly adjacent to the local town centre. Investigations will take place during 2017-18, with construction likely to
commence in late 2018.
Recycled water A large percentage of recycled water is used on site at both water
treatment plants:
Both of Melbourne’s sewage treatment plants produce Class A
and Class C recycled water for use on site and to supply a range • Eastern Treatment Plant supplies approximately 17,132
of offsite customers. The Western Treatment Plant was the first million litres of recycled water to customers and uses
plant in Victoria to produce the highest recycled class recycled around 9509 million litres on site.
water which is Class A. Class C is treated to a lower standard and • Western Treatment Plant supplies approximately 25,753
has a greater restriction on its uses. Recycled water is typically million litres of recycled water to customers and uses
supplied to offsite customers for: around 19,560 million litres on site.
• irrigating pastures and public open spaces
• intensive agriculture and horticulture
• toilet flushing and garden watering at residential estates
• industrial processes and wash down facilities.
Examples of recycled water use
Werribee Tourist Precinct Werribee Employment Precinct
We provide recycled water to this precinct for a range of We have supplied recycled water to Werribee
landscaping and non-potable purposes. Key customers Employment Precinct since June 2007. A 900-hectare
include Werribee Park Golf Club, Werribee Open Range site, the precinct is home to a number of high profile
Zoo and Werribee Park and Mansion. research and learning institutions.
Corporate Plan 2017 to 2022 Melbourne Water 31Eastern Irrigation Scheme Residential dual pipe supply
More than 80 customers access recycled water through Several housing estates around Cranbourne use a dual
this scheme via recycled water supplier, TopAq, for pipe system to access recycled water for watering
horticulture, open space irrigation and industrial gardens, flushing toilets and watering streetscapes and
processes. open spaces.
2017-18 to 2021-22
$18M
FORECAST REVENUE FOR RECYCLED WATER SERVICES
Capital program
Forecast recycled water revenue for the 2017-18 to 2021-22
planning period is $18 million while operational expenditure
Labour $5.1M
is forecast at $17.5 million. This accounts for 0.4 per cent of External Services $10.9M
Melbourne Water’s total expenditure. Total planned capital Materials $1.1M
expenditure for recycled water services for the period is $5.9
million, with no significant capital works programs planned.
Revenue and expenditure
Figure 18 shows the breakdown of direct operational expenditure Figure 18 – Breakdown of direct operational expenditure for
for recycled water. recycled water.
Strategic Priority: Arden Macaulay Redevelopment
Arden Macaulay is a city-shaping project on the northern featuring a wide variety of well-designed open spaces.
edge of Melbourne’s CBD that will transform the area into Melbourne Water is working closely with the Victorian
one of the best examples of urban regeneration in the Planning Authority and the City of Melbourne to develop
world. and implement a water sensitive strategy for the precinct,
which includes flood mitigation.
By 2051, it is projected that Arden Macaulay will be home
to 27,000 residents, supporting nearly 45,000 jobs and
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