Little Stringybark Creek

Stormwater Tender

Results (Rnd 1)

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Interest and applications

Stormwater Tender results

How was it all done?

What does it mean for the creek?

A total of 303 residents and business expressed an interest in Stormwater Tender, which is 32% of properties within the target catchment.

From the 303 registrations, 102 properties submitted bids requesting a total of $590,000* (see Table 1). The average price requested was $5,786, with a minimum of $100 and a maximum bid of $22,600. Of the 102 bidders, 30 submitted multiple bids, so that a total of 145 separate bids were submitted.

The total number of units of Environmental Benefit (EB) offered for 'sale' via was 129*. This represents approximately 51% of the estimated maximum EB potential of bidding properties (250 Units). The average bid offered 1.27 Units of EB, with the maximum being 5.25 units for a single bid.

	Submitted		Funded
	Total*	Average*	Total	Average
Bids	102	-	56	-
Bid Amount ($)	$590,000	$5,786	$340,584	$5,160
Environmental Benefit	129.07	1.27	100.3	1.7
$ requested/Environmental Benefit	-	$8,054	-	-
Nitrogen capture (kg/year)	18.66	0.18	14.74	0.26
Water Savings (L)	8,480,000	83,140	5,871,000	104,000

Table 1: Summary figures (total and average) for submissions to Stormwater Tender and the successful bids. * Where a bidder submitted more than on bid, only the most cost effective bid was included..

Stormwater Tender results

Close to 55% of the bids submitted to Stormwater Tender were successful. Together, they will share in over $300,000 worth of rebates (see Table 1) and have "sold" over 100 units of Environmental Benefit. The maximum units of Environmental Benefit sold by an individual property was 5.25 units, the smallest being 0.28 units.

The successful bids will save nearly 6 million litres of water a year, and even the smallest property is contributing a saving of 15,000 L/yr. And as a result of these bids, less nitrogen will be entering Port Phillip Bay (around 14 kilograms per).

How was it all done?

1) Running the auction. A full description of how bids were assessed can be found in Question 7 of the the FAQ (click here). In short, bids were assessed and then ranked according to the cost per unit of Environmental Benefit. Bids were also compared to other proposed stormwater treatment works in the catchment.

The auction identified a cost effective rebate price of $2,839 per unit of Environmental Benefit. Paying bids that cost more than this would offer a poor return for investment compared to the other identified stormwater treatments. The 32 bids that cost less than this price were successful. Together they shared in $210,010 worth of rebates and sold 63 units of Environmental Benefit (see Table 2).

	Tender Auction		2nd Round Offers
	Total	Average	Total	Average
Bids	32	-	24	-
Payment Amount ($)	$210,010	$5,000	$130,574	$5,441
Environmental Benefit 'purchased	63.4	1.98	36.8	1.5
Nitrogen captured (kg/year)	9.39	0.29	5.35	0.22
Water Saved (L)	3,859,000	120,590	2,012,000	83,800

Table 2: Summary figures (total and average) for bids funded via the Stormwater Tender auction proper and funded via the 2nd round offers.

2) Second round offers. With a rebate price of $2,839/EB not all of the funding pool was committed at the end of Stormwater Tender auction. Therefore, second round offers were made to priority properties that were unsuccessful in Stormwater Tender. The price offered was $2,839/EB, which was less than they had asked for.

24 properties accepted a reduced price for their proposed works, sharing in over $130,000 worth or rebates and "selling" 36 units of Environmental Benefit.

What does it mean for the creek?

When all works are complete (February 2009), over 5,800,000 litres of water will have been stopped from flowing directly into and damaging Little Stringybark Creek. This is a great start for the rehabilitation of the creek. Unfortunately, this represents less than 5% of all the extra and unwanted water flowing into the creek as stormwater.

So, there is a lot more work to do.

But this does not detract from the effort of what has been, or will be, done. For those properties that were successful, they are collectively treating 14,122m² of impervious (hard) surface. This is 83% of the impervious surfaces present on their properties. This is a very good outcome, and represents good value for money for our investment, which is good for the creek.