Board Meeting:
3 - 4 September 2012 / Agenda Number:
4 / File Reference:
AD0100

LORD HOWE ISLAND BOARD

Business Paper

Chief Executive Officer Report to September 2012 meeting of the LHI Board

The following briefing provides an overview of key issues managed by the Board during the reporting period, and their status. It is intended that this document be available to the public as part of the minutes of the meeting. Matters which are subject to confidentiality, business in confidence or legal action are shaded and are not included in the public copy of the report.

Number of items excluded from this public edition:

Business & Corporate Service Report

Reason: Business in Confidence

MATTER / STATUS / ACTION REQUIRED BY BOARD AT THIS MEETING
Governance Review / The Hon Murray Gleeson AC has completed a review of governance arrangements on the island. Mr Gleeson visited the island in April and submitted a report to the Premier in June 2012. The Premier is currently considering the report’s recommendations. / For Information
Grant funding / The NSW and Australian Governments have recently announced funding for two of the island’s important environmental projects. The Minister for the Environment, Robyn Parker, has awarded $1.5m million over 3 years to the Board for continuation of the island’s weed eradication program. In July the NSW and Australian Governments jointly announced $9 million funding for the eradication of rodents from the island. / See agenda item 11 (ii)
Chairperson Lord Howe Island Board / The former LHI Board Chair, Mr Alistair Henchman, resigned from role in July 2012. Under the Act the Minister shall appoint a Board member representing the Office of Environment & Heritage and a new Chairperson. The Board acknowledges Mr Henchman’s important contribution to the island. / For information
Category B / The Board was directed by the Minister under section 10 of LHI Act to defer completion of Category B dwelling process until Gleeson governance review was completed. The process is still on hold pending announcement of outcomes by Premier. Progress of the Board’s new policy to guide future dwelling allocations is also on hold. / For Information
Air Service / Transport for NSW recently announced the State Government is calling Expressions of Interest for new air licences to connect Sydney (Kingsford Smith) Airport to regional areas in NSW including Lord Howe Island. Announcement of EOI expected in October 2012. / For information
2011/12 Financial Statements / The Board’s draft 2011/12 financial statements have recorded a Net Operating Result of $2.68 million and Total Comprehensive Income of $8.12 million. The financial statements have been submitted to the Board’s external auditors for endorsement prior tabling in parliament and presentation in Board’s Annual Report. / For information


INFRASTRUCTURE AND ENGINEERING SERVICES

Includes Works, WMF and Electrical units

Works Unit

Building Construction, Maintenance and Management:

·  General maintenance of Board properties ongoing in accordance with the Works Unit Maintenance plan.

·  Minor maintenance has been undertaken on the LHIB Boatshed including protecting exposed electric cables (cables not in the required conduit).

·  The Liquor store shed was lined as per the NSW Food Authority recommendation.

·  Powerhouse Building construction continued (see separate paper)

·  Replaced floor to Phasmid enclosure

·  Slab for new glass crusher installed at WMF

·  Visitor facilities safety audit conducted and identified actions completed.

Wharf

·  Jetty, fenders and handrails checked for loose bolts and fittings.

·  Aluminium steps cleaned with chlorine to remove algae.

Airport

·  Landscaping, grounds maintenance and mowing of the grass apron and parking areas ongoing.

·  Two Bird Strikes reported for the period (Plovers)

·  Bird Hazard Management plan amended and submitted to BAHMC for endorsement.

·  Annual Aerodrome Technical Inspection completed in July, several recommendations not affecting operational status were made, however the survey indicated the Blinky Dune needs to be lowered to bring the takeoff, approach and transition Obstacle Limitation Surface (OLS) into compliance with the Manual of Standards Part 139 as a result a Development Application has been submitted for consideration at the September Board Meeting.

·  Builders arrived on the 28th August to install the new Qantaslink Check-in counter and associated storage facilities.

·  A contract has been awarded to James Thompson for the provision of daily Aerodrome serviceability inspections.

·  2 - yearly Aviation emergency exercise conducted Tuesday 14th August, the exercise WAS carried out to ensure compliance with CASR 139.

Roads, Parks and Visitor Facilities:

·  Mowing and general maintenance of public space and picnic areas ongoing.

·  Mowing plan prepared and under review by LHIB management

·  Ongoing wet weather has resulted in significant damage to roads due to poor subgrade conditions. Additional potholing and resealing has been undertaken however failures continue to occur due to very wet subgrade.

Emergency Management:

·  No incidents reported for the period.

·  Air Ambulance retrievals YTD total 29, the total for calendar year 2011 was 14

General items

·  Telehandler, tractor and elevating work platform competency training undertaken week commencing 24th July.

·  Board personnel assisted with the funeral arrangements for Gary Petherick and Judy Maddrill.

·  Beach nourishment Pinetrees Boatshed to Windy Point undertaken August

Waste Management Facility

·  Wastewater filters cleaned and irrigation lines flushed out

·  Re-use shed cleaned out, loose waste removed

·  Monthly maintenance check performed on all WMF machinery

·  Douse Fire Protection carried the annual fire extinguisher inspection.

·  Accreditation training on Merlo Panoramic completed.

·  JSA’s for WMF daily procedures completed.

·  New interpretive signs for the WMF have been purchased.

·  LHIB field operations 6 monthly OHS risk checklist completed.

·  The annual low season Waste Audit was conducted.

·  WMF staff have been working with some of the larger island businesses to help them reduce the amount of waste they generate (i.e. on site composting, minimize the use of bin liners and staff education).

·  A septic and grease trap year plan has been established and all parties involved with pumping and delivering septic/grease waste have been informed in writing of the arrangements that must be made before delivery.

·  A new vertical feed auger on the VCU have has been installed and the VCU is operating normally again. A new top feed auger was purchased along with the vertical auger; this will be installed when the old one wears out (probable in the near future).

·  The new Andela Glass Crusher has been installed and began operating on 28th July. Between the 28th July and 11th August the crusher operated for approximately 10 hours crushing approximately 12 ton of glass. On the 11th August an electrical fault caused the crusher to stop operating. At the time of this report the SEO is investigating the issue.

·  Total waste volumes received at WMF for 2011/12 are presented below.

Electrical Services Unit

Overview of Activities

·  Routine maintenance on Generating Units 1, 2 and 3 was completed.

·  Routine maintenance on Generating Unit No.1 air circuit breaker was completed.

·  Routine maintenance on Generator No.2, 3 and control board battery chargers was completed.

·  Routine maintenance on Genset 2 and 3 day fuel tanks and pump gear was completed.

·  Routine maintenance Generator 1, 2 &3 battery banks was completed.

·  Routine maintenance on Substations No.6 Middle Beach Road and associated distribution pillars was completed.

·  Supply load surveys were carried out on Substations No. 6 and associated distribution pillars. Distribution pillars were monitored for their voltage levels. All voltage levels in the surveyed areas were within acceptable limits

Information for Board Members

·  Energy demand for the reporting period was 566 400 kWh compared to 585 600 kWh last year. A decrease of 3.27 %

·  Fuel consumption for the reporting period was 145 100 litres compared to 149 200 litres last year. A decrease of 2.74 %.

·  Fuel energy efficiency for the period was 3.90 kWh / litre compared to 3.92 kWh / litre for the same period last year. A decrease of 0.5 %. The Series 60 diesel engines continue to provide excellent fuel efficiency during operation.

·  Maximum demand for the period was 417 kW compared to 465 kW for the same period last year. This maximum demand was recorded at 7.10 pm on 12th June.

·  There were two powerhouse supply interruptions during the period. The first at 1.10 am on 22nd June was caused by a cracked fuel line fitting on Genset 3. This resulted in a loss of supply for approx. 30 minutes whilst the faulty fitting was replaced. The second outage occurred at 8.05 pm on 5th August and was caused by a fuel level shutdown alarm on Genset 1. This resulted in a loss of supply for approx. 7 minutes whilst the shutdown alarm was reset.

·  There were no localized supply interruption during the period.

·  The construction of the new powerhouse is continuing with all major building construction works now being completed. Installation of the new exhaust systems have been completed. Installation of ventilation system wiring is near completion and control room, plant room and partial workshop light and power wiring have also been completed. Work has begun on the installation of the new earthing system for both powerhouse, substations and standby generator installations. The new powerhouse switchboard is due for delivery on 1st September. Once installed this will allow major generator, substation and building wiring service works to be completed.

·  There are presently 279 customers connected to the supply system. Four additional private solar array installations have been installed / commissioned on customer residences. There are now seven installations successfully feeding excess generation back into the island electrical grid in accordance with LHIB policy.

WASTE MANAGEMENT ANNUL REPORT
Summary
WASTE VOLUMES PROCESSED / WASTE VOLUMES EXPORTED / WASTE TRANSPORT
MATERIALS / MATERIALS / MATERIALS / 3.5m3skip / 3m3 skip / 2m3 skip / PALLET / OTHER
RECYCLES / 27 / 0 / 0 / 30 / 6
FOOD/WASTE / 20L/BUCKET / 11480 / FOOD/WASTE / 20L/BUCKET / 0 / BUILDING WASTE / 23 / 0 / 1 / 0 / 0
WEIGHT / 133168 / WEIGHT / 0 / RESIDUAL WASTE / 0 / 57 / 0 / 0 / 0
PAPER/CARD / WEIGHT / 60966 / PAPER/CARD / WEIGHT / 0 / OTHER / 0 / 0 / 0 / 20 / 6
GREENWASTE / M3 / 150 / GREENWASTE / M3 / 0 / TOTAL SKIPS / 50 / 57 / 1 / 50 / 12
GLASS / WEIGHT / 74520 / GLASS / WEIGHT / 12400 / CUBIC METRES / 175 / 171 / 2 / 0 / 0
PLASTIC/RECYCLE / BAILS / 35 / PLASTIC/RECYCLE / BAILS / 35
WEIGHT / 8750 / WEIGHT / 8750
MAGAZINES / BAILS / 845 / MAGAZINES / BAILS / 845
WEIGHT / 2541 / WEIGHT / 2541 / Financial year To 30 June 2012
SCRAP/METAL / WEIGHT / 35610 / SCRAP/METAL / WEIGHT / 35610 / Direct Waste Costs / $ 59,922
ALUMINIUM / WEIGHT / 800 / ALUMINIUM / WEIGHT / 800 / LHIB Operations Costs / $ 283,450 / Sourced from Practical
ENGINE/OIL / LITRES / 4600 / ENGINE/OIL / LITRES / 4600 / Balance cost to LHIB / $ 343,400
TYRES / NUMBER / 2000 / TYRES / NUMBER / 2000
PAINT / WEIGHT / 0 / PAINT / WEIGHT / 0
BATTERIES / WEIGHT / 920 / BATTERIES / WEIGHT / 920 / Waste fees / $ 281,974 / (including levy from Practical)
CHEMICALS / WEIGHT / 920 / CHEMICALS / WEIGHT / 920 / Cost recovery / $ 18,473 / from practical
ST/VINIES/CLOTHS / BAILS / 13 / ST/VINIES/CLOTHS / BAILS / 13 / subtotal / $ 300,447
WASTE/GENERAL / BAILS / 115 / WASTE/GENERAL / BAILS / 115 / Net Impact / -$ 42,953
WEIGHT / 55720 / WEIGHT / 55720
WASTE/BUILDING / WEIGHT / 25440 / WASTE/BUILDING / WEIGHT / 25440
BUILDERS RUBBLE / WEIGHT / 1750 / BUILDERS RUBBLE / WEIGHT / 1750
TREAT/EFFLUENT / LITRES / 282506 / TREAT/EFFLUENT / LITRES / 0
TRANSPORT AND DISPOSAL COST FOR PERIOD / RECYCLE PRODUCTES SOLD
LHI TRANSPORT / $ 7,362.84 / practical / PRODUCT / WEIGHT (t) / RATE PER TONNE / AMOUNT
LHI SEA FREIGHT / $ 19,501.90 / practical / STEEL / 22,953 / varies / $ 1,686
JRR TRANSPORT & Disposal / $ 26,981.76 / practical / MIXED PLASTIC / 7,112 / varies / $ 744
MAGAZINES / 1,369 / varies / $ 65
JR Richards SKIP HIRE / $ 6,075.02 / ALLY/CAN / 800 / varies / $ 320
TOTAL / $ 59,921.52 / BATTERIES / 0 / varies / $ -
COPPER/BRASS / 0 / varies / $ -
GLASS / 0 / varies / $ -
BUILDING WASTE FEES CHARGED / TOTAL FOR RECYCLES / $2,814.15 / (cost recovery)
M3@ $230 / $12,493.18
Whitegoods@ $30 / $1,410.00
mattress@ $20 / $340.00
skip hire@$95.70 / $478.80
TOTAL / $14,721.98

ENVIRONMENT & COMMUNITY DEVELOPMENT

General Policy and Planning

·  Prepare draft development assessment policy and procedures

·  Prepare draft community grants policy

·  Finalise Operations Plan 2011-12