Lismore City councillors are to consider writing off two debts at their ordinary meeting today, including one for more than $300,000 incurred by local dairy co-op Norco.
Staff advice included in this week’s agenda notes say the precedential value of the Norco decision should be carefully considered, ‘given the large sum involved’.
The notes show Norco ‘unintentionally discharged a non-compliant trade waste stream’ from its ice cream factory at 120 Union Street South Lismore between October and December 2023.
The discharge went into the South Lismore Treatment Plant, contaminating ‘all treatment processes’ with milk solids.
But staff say they are seeking approval for the partial writing off of Norco’s trade waste charges for the relevant period to reflect ‘cost recovery’ associated with damages as opposed to ‘punitive charges’.
Norco says council used wrong samples
‘Due to a series of accidental non-compliant events, Norco incurred a total bill of $418,183.58 for the three-month period for both volume and excess mass fees,’ staff detail.
‘Under normal compliant discharge conditions, Norco would have incurred charges of approximately $30,000 over the same period.’
Their report outlines Norco’s request for the council to amend the bill.
‘Norco believed that the trade waste charges were incorrectly assessed by council as a result of a blockage in the council network of sewer assets,’ the report says.
‘Norco’s position is that the blockage caused untreated waste to contaminate treated waste.
‘Council is confident that the metering over this period was accurate and the blockage in the council network did not impact result in the higher concentrations of waste from the facility.’
Staff recommend reducing Norco bill by more than 75%
But staff say they carried out an assessment of charges ‘in consideration of Norco’s proactive efforts to rectify the situation and the primary purpose of council’s trade waste charges being for cost recovery and fairness’.
They have subsequently recommended the council write off outstanding amounts of $318,592.58, noting the concession ‘will adversely impact the Sewer Fund’ but that the fund ‘has the financial capacity to absorb’ the impact.
The adjustment, if approved, will leave Norco with an outstanding balance of $99,590.00 including GST.
Bill relief recommended in response to prolonged water leak
Meanwhile, a separate staff report recommends writing off more than $17,272.74 in excess water consumption charges for a Caniaba Road property.
Staff say the circumstances surrounding a water leak at 41 Caniaba Road were exceptional and largely outside the property owner’s control.
‘Although the leak was technically the homeowner’s responsibility,’ staff note, ‘the service line crossed Council-owned land and several complicating factors prevented timely repairs, including damage caused during the 2022 floods, flood debris deposited on Council land restricting access, and the presence of protected trees within the easement’.
Staff note the council ‘has since provided a permanent solution by relocating the service connection to the property boundary’.
‘In light of these circumstances,’ their report continues, ‘it is recommended Council write off $17,272.74 in excess water consumption charges, leaving a recoverable balance of $10,042.34’.
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