130704 FINAL Corporate Business Plan 2013-2017

8/22/2019 130704 FINAL Corporate Business Plan 2013-2017

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2013-2017C O R P O R A T E B U S I N E S S P L A N


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C O N T E N T S

CHIEF EXECUTIVE OFFICERS MESSAGE ................................................................................................. PAGE 03

TERMINOLOGY USED IN THIS DOCUMENT ................................................................................................ PAGE 04

1. CORPORATE BUSINESS PLAN ......................................................................................................... PAGE 04

1.1 STRATEGIC AND BUSINESS PLANNING FRAMEWORK............................................................. PAGE 06

2. OUR STORY .........................................................................................................................................PAGE 07

2.1 HOW WE CAME ABOUT .............................................................................................................. PAGE 07

2.2 WHAT WE DO ..................................................................................................................................... PAGE 07

2.3 KEY CHALLENGES: THE METROPOLITAN REVIEW .................................................................... PAGE 08

3. HOW TO READ THIS DOCUMENT ................................................................................................... PAGE 11

4. KEY FOCUS AREAS ............................................................................................................................ PAGE 12

5. FINANCIAL OVERVIEW ..................................................................................................................... PAGE 25

6. ASSET OVERVIEW .............................................................................................................................. PAGE 29

7. WORKFORCE OVERVIEW ................................................................................................................. PAGE 30

PA G E 02 S M R C C O R P O R A T E B U S I N ES S P L A N


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The Corporate Business Plan (the Plan) details the

actions the Regional Council will undertake, overa our year period to achieve the stakeholders

aspirations and objectives detailed in the Strategic

Community Plan. The Plan will be updated each year

in order to reect evolving conditions.

The SMRC aces signicant challenges in the short

and medium term and has addressed these in the

Plan by:

Placing waste minimisation to landll at the core o

our business.

Delivering waste management solutions that are

eective and efcient.

Identiying partnership opportunities to deliver

waste management solutions.

Working towards solutions that add value to our

residual products

Attracting new customers and partners to optimiseour processing capacity.

Delivering sustainable waste management

solutions in an efcient and eective manner

Reecting the current commercial environment,

and developing the exibility to continually evolve

as conditions change

Understanding and integrating the expectations o

our member councils into a governance structurethat is equitable and representative

Providing our communities with the right level o

knowledge and education so that positive wasteseparation behaviour change happens in the

household

Placing education as a oundation or addressing

all areas o the waste hierarchy paramount in the

reduction o waste to landll and a signicant role

in delivering an efcient operation.

The Plan also ensures there are appropriate key

perormance indicators and measures o success to

report to stakeholders on our annual perormance.

We will continue to improve and enhance our

Regional Resource Recovery Centre (RRRC), so that

it remains a model or other local, regional and state

governments seeking sustainable solutions or waste

management.

Our member local governments who participate in the

RRRC project are recognised by the State as leading

the way in achieving the highest waste recovery andrecycling in local government in the State. As we

divert over 70% o waste rom landll, we are already

achieving the state goal o 65% by 2020.

I look orward to working with our regional local

government partners, community, industry and

government leaders, councillors and sta to achieve

a positive uture or the SMRC and its communities.

MESSAGE FROM THECHIEF EXECUTIVEOFFICER

The Plan also ensures there are

appropriate key perormance

indicators and measures o successto report to stakeholders on our

annual perormance.

Ti m Yo u , Ch i e E xe c u t i ve O i c e r

S M R C C O R P O R A T E B U S I N ES S P L A N PA G E 03


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TERMINOLOGY USED IN THIS DOCUMENT

1. CORPORATE BUSINESS PLAN

AMP........Asset Management Plan

CAG ........Community Advisory Group

CBP .........Corporate Business Plan

C&D ........Construction and Demolition Waste

C&I ..........Commercial and Industrial Waste

DEC .........Department o Environment Conservation

EMS.........Environmental Management System

GWF........Green Waste Facility

LTFP ........Long Term Financial Plan

MRF ........Materials Recovery Facility

MSW.......Municpal Solid Waste

RRRC ......Regional Resource Recovery Centre

SCP .........Strategic Community Plan

SOP.........Standard Operating Procedures

SMRC .....Southern Metropolitan Regional Council

SWMP ....Strategic Waste Management Plan

WCF ........Waste Composting Facility

WFP ........Workorce Plan

The Corporate Business Plan is an internal business planning tool that translates Council priorities into operations

within the resources available. It represents the activation o the Southern Metropolitan Regional Councils (SMRC)

Strategic Community Plan. The Strategic Community Plan articulates long term vision, aspirations, and strategic

priorities o SMRCs key stakeholders. These are reected in the ollowing Vision Statement:

Our Vision

We are leaders in delivering innovative and sustainable waste management solutions

or the beneft o our communities and the environment



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1. CORPORATE BUSINESS PLAN (continued)

1.1 Strategic and Business Planning Framework

All local governments within Western Australia, including Regional Councils, are required to plan or the uture

in accordance with Section 5.56(1) o the Local Government Act 1995 and adopt an Integrated Planning and

Reporting Framework. The diagram opposite depicts this ramework. The table below summarises each o therameworks key compontents:

Component Purpose Our Document

Strategic Community Plan To articulate the long term vision, aspirations and strategiesor member councils and our communities.

Strategic Community Plan 2013-2023

Corporate Business Plan Details the actions the Regional Council will undertake,and resources required, over a fve year period to achievestakeholders aspirations and objectives o the Strategic

Community Plan.The Operational Plan is integrated as the frst year o theCorporate Business Plan.

This Document

Long Term Financial Plan Provides an outline o the fnancial position or SMRC orthe next ten years. It indicates SMRCs long term fnancialsustainability and allows early identifcation o fnancialissues and their longer term impacts.

The Annual Budget is integrated as the frst year o the LongTerm Financial Plan.

SMRC Long Tern Financial Plan 2013-2023

Asset Management Plan Outlines how the SMRCs assets will meet the service

delivery needs o the community into the uture the longterm sustainable management o the assets based on awhole o lie and whole o organisation approach.

SMRC Asset Management Plan 2013-2023

Workorce Plan Outlines the workorce requirements and workorcestrategies or the delivery o the current and utureoperations o SMRC.

SMRC Workorce Plan 2013-2023

Issue Specifc Strategies These are specifc strategies that SMRC has developed torespond specifc issues, or guide SMRCs approach to aprogram o work.

Strategic Waste Management Plan (SWMP)

Community Engagement Strategy

SMRC Marketing Plan

Environmental Management System (EMS)

Establishment Agreement

Project Participants Agreement

Annual Budget The process by which the local government inormsthe community and statutory bodies on its progress indelivering services, projects and other operations to meetthe communitys short term, medium term and long termaspirations.

Annual Budget or the year ended__________ o the Southern MetropolitanRegional Council

Measurement & Reporting The reporting process allows the Regional Council to inormits stakeholders and statutory bodies on its progress in

delivering services, projects and other operations to meetthe short term, medium term and long term aspirations.

Annual Report or the year ended

Operating Licence Report



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Source: Department of Local Government, Integrated Planning and Reporting Guidelines, 2010.

2. OUR STORY

2.1 How we came aboutIn 1991, the local governments o Canning, Cockburn,

East Fremantle, Fremantle, Kwinana, Melville, and

Rockingham came together to orm a regional

approach to waste management. The Councils realised

that an individual approaches or alternative wasteoptions would be too expensive or a single council. A

solution was required or the thousands o tonnes o

waste were being sent direct to landll each year with

little consideration o the uture social, economic, and

environmental implications.

As a result, the Councils ormed the Southern

Metropolitan Regional Council (SMRC) to provide

environmentally sustainable waste management

solutions or the benet o the community andmember councils.

2.2 What we doSouthern Metropolitan Regional Council (SMRC) is a

statutory local government authority representing

local governments in the southern metropolitan area

o Perth. It is responsible or delivering innovative

and sustainable waste management solutions or ourmember local governments.

Our ve member local governments are: City o

Cockburn, Town o East Fremantle, City o Fremantle,

City o Kwinana and City o Melville.

The member local governments have jointly agreed

to establish the regional local government under an

Establishment Agreement and each participant may

participate in regional projects that are governed by

a Participants Project Agreement.

Community Engagement

Measurement and Reporting

Outputs: Plan Monitoring and Annual Reporting

STRATEGIC COMMUNITY PLAN

INFORMING STRATEGIES

Finance

Workorce

Assets

Services

Issue Specic Strategic

Etc.

CORPORATE BUSINESS PLAN

ANNUAL BUDGET



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There are two core projects, being:

1. The Regional Resource Recovery Centre (RRRC)

Project and;

2. The Ofce Accommodation Project.

Both the projects were established through

separate project participants agreements. The City

o Kwinana is not a participant in RRRC project. In

addition to the above two projects, support activities

such as administration, education and research are

also undertaken.

Our Regional Resource Recovery Centre (RRRC)

was the rst o its kind in Western Australia, and

remains a model or other local, regional, and stategovernments seeking sustainable solutions or waste.

We operate a state o the art $100 million Regional

Resource Recovery Centre at Canning Vale where

we run three resource recovery acilities that orm

part o RRRC:

1. Organic waste (household and small garden waste)

is collected using the green top bins, processed

and turned into compost a the Waste Composting

Facility;

2. Paper, plastics, and metals are collected rom

households using the yellow top bins, and are

sorted and recovered in the Materials Recovery

Facility, then sold to domestic and international

markets; and

3. Green waste is collected rom the kerbside o

households, and turned into mulch at the Green

Waste Facility.

The SMRC is committed to assisting the State

Government to work towards achieving its State

Waste Strategy 2012 targets o 50% or Metropolitan

Perth by 2015, and 65% by 2020.

As an organisation, we inject over $20 million per

year into the economy, employ over 65 sta and

provide work or 100 local small businesses and

contractors each month.

2.3 Key Challenges:

The Metropolitan Review

What is the Metro Review?

The Metropolitan Local Government Review Panel

was appointed in June 2011 to examine the current

and anticipated regional, social, environmental and

economic issues aecting, or likely to aect, the growth

o metropolitan Perth in the next 50 years, as well as

current and anticipated national and international

actors. The Panels task was to recommend the

most appropriate local government structures and

governance models or metropolitan Perth.

As part o the Panels ndings, recommendations rom

the report include:

Recommendation 6: The State Government

consider the management o waste treatment

and disposal at a metropolitan-wide scale either

be undertaken by a State authority or through a

partnership with local government.

Recommendation 11: The existing Regional Local

Governments in the metropolitan area be dissolved,

their provisions in the Local Government Act1995 be repealed or the metropolitan area and a

transitional plan or dissolving the existing bodies in

the metropolitan area be developed.

Recommendation 15: A new structure o local

government in metropolitan Perth be created through

specic legislation which reduces the number o local

governments in metropolitan Perth to 12.

The State Government has made no decision on

the Review Panels recommendations. Whateverhappens with the Metro Review, we will continue

to deliver innovative and sustainable waste

management solutions or the benet o our

communities and the environment.

Our Response

The SMRC prepared a submission paper on the

Metropolitan Local Government Review Panels Final

Report.



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1. Introduction

SMRC is an active member o the Municipal Waste

Advisory Council (MWAC) which is a standing

committee o the West Australian Local Government

Association (WALGA) with delegated authority to

represent the Association in all matters relating to

solid waste management. MWACs membership

includes the major Regional Councils (waste

management) and a number o Local Governments.

Our submission should thereore be read in

conjunction with previous MWAC Submissions on the

Metropolitan Local Government Review Panels Issues

Paper, Drat Findings and the Final Report.

Our submission relates specically to

recommendations 6 and 11 o the Metropolitan Local

Government Review Panels Final Report, as these have

the potential to impact signicantly on the SMRCs

waste management activities. It should be noted,

that i the Government implements all o the Panels

recommendations, there will be other implications or

how waste is managed.

2. Current role of Regional Councils

The Panel has observed that each Regional Council

tends to implement a waste treatment solution

or its own region (Final Report, pg 46). It should

be noted that this can be directly attributed to a

dened legislative responsibility or a geographical

area it is not the role o a Regional Council (under

the current structure) to provide services on a wider

scale. However, it should be noted that Regional

Councils do contribute at a much wider scale. The

innovative waste management outcomes thathave been achieved by Regional Councils, in spite

o the numerous challenges associated with the

current structure, should be commended. Increased

involvement by the State Government is welcomed,

particularly in terms o leadership in planning and

providing support and unding or uture waste

management needs.

3. Future challenges

The Panel has not presented any solutions (other than

total dissolution) or the issues acing Regional Councils.

There is a very real possibility that using the Panels

approach will result in a situation where the challenges

experienced in the current structure are simply passed

onto a new entity tasked with waste management.

Should the Government accept the Panelsrecommendation to dissolve Regional Councils, SMRC

supports the Panels suggestion that an independent

commission is established to oversee the transition to

a new entity (Final Report, page 11). The Government

will need to strike a balance between utilising the

current expertise in the sector as well as potential

competing interests i it chooses to develop an

alternative waste management structure in the uture.

4. Impact of the reform process

The current metropolitan local government reorm

process is having an impact on Local Governments

uture planning or waste management. Local

Governments, Regional Councils and the private

sector are understandably unwilling to commit to new

projects with this level o uncertainty.

5. Response to Panel recommendations

Given the complexities and costs associated with

providing best practice waste management outcomesthe SMRC agrees that there is a need or greater

leadership and support by the State Government

in overseeing the structures or waste disposal and

treatment, transport and major planning.

SMRC is o the view that in reaching their

recommendations the Panel has not identied the

current macro waste management landscape in

metropolitan Perth nor properly considered the

implications o a centralised approach. This should be

clearly articulated beore consideration o appropriate

and improved alternatives.

Should the Government choose to alter the waste

management structure in the uture and diminish

the responsibilities o Local Government; appropriate

amendments will need to be made to the Waste

Avoidance and Resource Recovery Act (WARR) 2007.

Currently, Local Government is the only entity with

a dened legislative responsibility or any part o the

waste stream and the WARR Act should be urtheramended to legislate responsibilities or all waste

streams ie MSW, C&I and C&D.



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2. OUR STORY (continued)

Furthermore, any legislative shit in responsibilities

or waste would clearly have an impact on businesses,

consumers and the Western Australian economy,

thus triggering the requirement or a regulatory

impact assessment (Regulatory Impact Assessment

Guidelines), 2010.

SMRC believe there should be three metropolitan

Regional Councils based on shared objectives and

binding commitments with compulsory membership

or the purposes o waste management, collection,

treatment and disposal.

SMRC proposes that Regional Councils are

reconstituted along more appropriate geographicboundaries that reect a north, east and south

metropolitan demarcation. This would allow

or economies o scale to be achieved without

compromising the already high level o service oered

by Local Government in the collection, recycling and

disposal o waste.

Consolidating Regional Councils would better reect

the proposed lower number o Local Governments

and provide greater opportunity to streamline

and rationalise the delivery o best practice waste

management that is consistent with the waste

hierarchy and State Government policy.

Consideration should also be given to employing

more eective governance models or Regional

Councils such as employing the Regional Subsidiaries

or Council Controlled Organisation Models.

Recommendations

1. That there be three metropolitan Regional

Councils based on shared objectives and binding

commitments with compulsory membership or

the purposes o waste management, collection,

treatment and disposal.

2. Metropolitan Regional Councils be reconstituted

and along more appropriate and logical geographic

boundaries that reect a north, east and south

metropolitan demarcation. This would allow

or economies o scale to be achieved without

compromising the already high level o service

oered by Local Government in the collection,

treatment and disposal o waste.

3. Consideration should be given to employing more

eective governance models or Regional Councils

such as employing the Regional Subsidiaries or

Council Controlled Organisation Models.

4. Waste management should be undertaken as a

partnership between Local and State Government

and adequately unded rom the waste levy.

5. Restoration o ull hypothecation o the landll levyor waste minimisation and recycling.



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3. HOW TO READ THIS DOCUMENT

OBJECTIVEKEYP

ERFORMANCEINDICATORS

STRATEGY

ACTION

The ollowing section outlines our three key ocus

areas (as outlined in the Strategic Community Plan).

For each key ocus area we have identied Objectives

(what we aim to achieve). Each objective issupported by one or more Strategies (what we will

do to achieve the objectives). For each Strategy, we

have identied the key projects or programs o work.

To measure i we have succeeded in delivering on

the objectives, we have identied key perormance

indicators that we will measure and report on each

year. In some cases the key perormance indicators

are measures o doing, and in other cases they

are measures o outcomes such as changes in thecommunities perceptions and behaviours.



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4. KEY FOCUS AREAS

What this means

Minimising waste to landll is at the core o our

business.

We deliver waste management solutions that are

eective and efcient.

We identiy partnership opportunities to deliver

waste management solutions.

We work towards solutions that add value to our

residual products.

Where will we be by 2023?

We will be exceeding the State Governments

targets o diversion rom landll.

We will be recognised as leaders in our eld.

We will be nancially sustainable and our acilities

will operate close to capacity.

We will oer an expanded range o services in

waste management.

We will be processing a wide range o waste

types, including e-waste, containers, and

Commercial & Industrial waste.

We will be a recognised knowledge base and

source o expertise in resource recovery and

waste management.

Key Challenges Aecting this Activity Our ability to communicate the environmental

benets o our processing technologies.

Our ability to comply with regulatory obligations.

Our ability to demonstrate our processing costs

are balanced against the environmental benets

gained.

Our Vision We deliver solutions that divert waste rom landll



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Strategies Actions ResponsibilityTimer

2013/14 2014/15

1.1.1 Expanding thesources rom where wereceive recovered material

a. Prepare a Business Case to support the receipt ocommercial waste at the WCF, MRF, GWF acilities

CEO 3

b. Apply or amended licence or WCF and GWF Strategic Projects 3

c. Apply or new operating licence or WCF and GWF Strategic Projects 3

1.1.2 Extending ourservice oering toincorporate a widercatchment area andcouncils

a. Source new MRF, WCF and GWF waste streams romother local governments

CEO 3 3

b. Prepare Feasibility Study on the opportunity or athree bin collection system including the impact onthe customer, member council and SMRC

Strategic Projects 3

1.1.3 Investigating newrecycling opportunitiesto include streams suchas e-waste, public placerecycling and drop oservices or problematicwaste

a. Prepare Feasibility Study on establishing a drop oservice or new recyclables (e.g. containers, e-waste)

Strategic Projects 3

b. Develop a market assessment or reuse/recycling oConstruction and Demolition waste (C&D)

Strategic Projects

1.1.4 Educatingour communitiesto understand theimportance o correctwaste separation

a. Implement the Recycle Right Program to provideconsistent messaging / guidance to communitygroups and stakeholders on correct waste separation

Communications 3 3

b. Promote the Recycle Right Program amongst membercouncils as the regional recycling initiative

Communications 3 3

c. Promote the Recycle Right Program to othercustomers

Communications 3 3

Objective 1.1 We will increase the volume o recyclable and recovered material

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Strategies Actions ResponsibilityTimerame

2013/14 2014/15 2015/1

1.2.1 Expanding theoptions or the sale/reuseo the recovered material

a. Continue to explore sustainable recycling markets Strategic Projects 3 3 3

b. Work with State agencies, local governments, and

commercial waste operators to identiy uses orproblematic materials

Strategic Projects 3 3 3

1.2.2 Educatingour communitiesto understand theimportance o the use orecovered materials

a. Increase the number o tour groups going through theRRRC

Communications 3 3 3

b. Develop an educational module or schools Communications 3

c. Promote the Recycle Right Program Communications 3 3 3


2013/14 2014/15 2015/1

1.3.1 Investigatethe viability o newtechnologies or wasterecovery

a. Evaluate the role o Waste to Energy or residualmaterials

CEO and StrategicProjects

3

b. Develop Future Options Plan or RRRC project CEO 3

c. Work with Federal and State waste agencies,participate on working parties, research options

SMG 3 3 3

1.3.2 Investigate bestuse scenarios or currenttechnology and site

a. Complete nal screen upgrade or WCF Operations 3

b. Evaluate current site potential to provide improvedresource recovery options (1.1.3 & 2.2.3)

Strategic Projects 3 3

Objective 1.2 We will ensure resources recovered are reused

Objective 1.3 We will continue to source and develop innovative options or the recovery o


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Objective Perormance Indicator How it will be measured

Current

perormance

(2012/13)

Objective 1.1

We will increase the volumeo recyclable and recoveredmaterial

a. Waste diverted rom landll(received at RRRC)

Percentage o waste diverted = (1 totalresiduals/total waste processed x 100%)

63%

b. Increase in volume processedthrough RRRC

Volume (Tonnes) o material processed(weighbridge)

107,679t

c. Growth in commercial customerbase

Percentage o annual increase intotal commercial customers tonnageprocessed (weighbridge)

Baseline

13,180t

d. Contamination is reduced in WCFand MRF waste streams collected

Waste audits

% o recyclables in the wrong bin

% o non-recyclable in the yellow bin

43%

6.4%

e. Community understands the

importance o correct separation

Community Attitudes towards Recycling

Survey

TBA

Objective 1.2

We will ensure resourcesrecovered are reused

a. Percentage recovery rate o material Weighbridge data (in and out) 55%

b. The number o people goingthrough the RRRC

Visitor numbers 3,000

c. Increase in trafc o users onRecycle Right website

Number o hits on the Recycle Rightwebsite

3,428

Objective 1.3

We will continue to source anddevelop innovative options orthe recovery o waste

a. Member council and industryperceptions o SMRC as a leader inwaste recovery

Stakeholder survey TBA

Key Perormance Indicators

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What this means

Delivering sustainable waste management

solutions in an efcient and eective manner is

essential to our business.

Our business model must reect the current

commercial environment, and have the exibility

to continually evolve as conditions change.

We must be able to understand and integrate

our expectations o our member councils into

a governance structure that is equitable and

representative.


By 2023 our member councils will be receiving

social and economic dividends or their

investment.

We understand the acceptable level o cost our

member councils are willing to pay, and have

priced our service accordingly.

Our capital investments are efciently utilised

and we are nancially sustainable over the longterm.

Our business model and governance structure is

appropriate to enable the delivery o our services.

Key Challenges Aecting this

Activity

Changes in legislation.

Potential withdrawals rom the SMRC

Establishment Agreement.

Stakeholder support

KEY FOCUS: BUSINESS SUSTAINABILITYOur Vision We have a business model that supports the delivery o long-term

sustainable waste solutions



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Strategies Actions ResponsibilityTime

2013/14 2014/15

2.1.1 Reviewing andimproving our existinggovernance arrangements

a. Facilitate review o SMRC Establishment Agreement CEO 3

b. Prepare a brieng paper on viable alternativecorporate structures CEO 3

2.1.2 Investigatingalternative businessdelivery models to ensureour business practicesare reective o thecommercial environment

a. Conduct a Feasibility Study or establishment o a 2ndwaste treatment acility

Strategic Projects

b. Identiy opportunities and investigate the easibility oPublic-Private-Partnerships and contracts

CEO 3


2013/14 2014/15

2.2.1 Identiying anddelivering processimprovementopportunities

a. Undertake an Operational Process ImprovementReview

Operations 3

b. Maintain Continuous Process Improvement Operations 3 3

c. Develop a plan to monitor the perormance o keymachinery via measuring output volume and inputresource requirements ie electricity, water

Operations 3

2.2.2 Efcient

management o our assets

a. Schedule and deliver an annual maintenance program

or the assets

Operations 3 3

b. Develop and deliver a capital renewal plan as per theasset management and long term nancial plans

Operations 3 3

2.2.3 Investigatingalternative uses or oursite and resources

a. Evaluate current site potential or alternative usesother than resource recovery

Strategic Projects 3 3

Objective 2.1 Our governance model supports an eective and efcient business mo

Objective 2.2 We deliver operational activities efciently

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2013/14 2014/15 2015/1

2.3.1 Engaging withmember councils on aormal regular basis

a. Review o Regional Council Meeting structures Corporate Services 3

b. Implement relevant components o theCommunications Plan

SMG andCommunications

3 3 3

2.3.2 Operating within anappropriate governancestructure

a. Facilitate review o SMRC Establishment Agreement CEO 3

b. Regularly engage member council representatives inormal meetings

Corporate Services 3 3 3


2013/14 2014/15 2015/1

2.4.1 Achieving consensuson existing and uturewaste processing servicesbusiness models

a. Continuously evaluate costing and unding models oreach activity o the business


b. As required, develop Business Plans or new projects Corporate Services 3 3 3

2.4.2 Developing asustainable long termresourcing plan

a. Review the LTFP annually Corporate Services 3 3 3

b. Review AMP annually Operations 3 3 3

c. Integrate the capital works requirements rom theAMP with the LTFP

Corporate Services

3 3 3

d. Implement the Debt Management Strategy andReserve Fund Strategy


Objective 2.3 Our member councils are engaged and support our direction

Objective 2.4 Our Business is nancially viable and sustainable


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2013/14 2014/15

2.5.1 Being a responsibleand considerate employer

a. Review and implement Workorce Plan Corporate Services 3 3

b. Develop and implement a workorce attraction and

retention policy

Corporate Services 3

c. Review and implement Annual Sta Training Programbased on organisational and proessional needs

Corporate Services 3 3

2.5.2 Providing a saeworking environment

a. Implement appropriate workplace training practices Operations 3 3

b. Review the OH&S Guidelines Operations 3

c. Conduct regular workplace saety meetings Operations 3 3

d. Implement behaviour-based saety evaluations inperormance assessments

Corporate Services 3 3

Objective 2.5 We value our human resources

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Current

perormance

(2012/13)201

Objective 2.1

Our governance modelsupports an eective andefcient business model

Amended Establishment Agreement Adoption by member councils

Objective 2.2

We deliver operationalactivities efciently

Plant availability Percentage o material not accepted atRRRC

73% 95

Ratio o planned to unplannedmaintenance

Maintenance Activity Records TBA T

Extent to which assets are beingreplaced as they reach the end o theiruseul lives

Capital Ex on replacement or renewal oassets divided by depreciation expense(expressed as a %)

TBA T

Objective 2.3

Our member councils areengaged and support ourdirection

Member councils supporting ourdirection

Stakeholder Survey TBA T

Objective 2.4

Our Business is nanciallyviable and sustainable

Current Ratio Current liabilities over current assets >1.1 1.1 1

Operating Surplus Ratio Operating Surplus beore depreciationover operating revenue 0- 15

TBA 5

Debt Service Cover Ratio Principal & Interest payment over >2 TBA 1

Asset Renewal Funding Ratio 95-100 TBA 8

Objective 2.5

We value our human resources

Employee satisaction % o employees who express satisactionat the 75% percentile or above in the

employee engagement survey

64 7

Number o lost time incidents (LTI) Number o lost time injuries

Number lost time injuries X 1,000,000 /hours worked

2

18

Employee retention Employee turnover (Employee numbers) 10 1



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What this means Our communities/stakeholders are at the core o

our existence.

Our communities possess the right level o

knowledge and education so that change

happens in the household, at the grassroots o

our society.

Education and environmental stewardship

play a undamental supporting role in all areas

o the waste hierarchy. These are paramount

in the reduction o waste to landll, and play

a signicant role in supporting many o our

operational elements.


We will be leading a regional and metropolitan

approach to education

Our brand is positively recognised by our

communities

We have a positive and ongoing relationship with

our communities and stakeholders

We are the leaders in achieving the Waste

Authoritys targets on diversion rom landll and

resource recovery

Our member councils and others look to us or

guidance and advice in waste education andminimisation practices

Key Challenges Aecting this

Activity

Change in legislation

Changing Federal and State Government policy

Availability o our nancial, physical and human

resources to deliver meaningul education and

behaviour change programs

KEY FOCUS: COMMUNITY & STAKEHOLDERRELATIONSHIPS

Our Vision We support a community o shared responsibility



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2013/14 2014/15 2015/1

3.1.1 Developing andimplementing a successulcommunity educationprogram

a. Implement the Recycle Right Program to provideconsistent messaging / guidance to the community

Communications 3 3

b. Promote the Recycle Right Program amongst membercouncils as the regional recycling initiative


c. Actively pursue unding and partnership opportunitiesor educational programs


3.1.2 Partneringwith complementaryorganisations toacilitate behaviouralchange towards wastemanagement and

resource recovery

a. Integrate waste behaviour change programs withmember councils sustainability strategies


b. Engage with member councils Education Ofcers andCAG


c. Partner with the Waste Wise Schools Programs Communications 3 3 3

d. Develop existing relationships with Waste Authorityand DEC


Objective 3.1 We will reduce the communitys greenhouse gas emissions rom waste throu


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2013/14 2014/15

3.2.1 Engaging with thecommunity

a. Review and implement the Community EngagementPlan

Communications 3 3

b. Review and implement the Recycle Right Program Communications 3 3

c. Continue to work with, and provide support to, theCAG

Communications 3 3

3.2.2 InuencingFederal, State, and LocalGovernments in thedevelopment o regionaland metropolitan wastemanagement policies andlegislation

a. Advocate or enhanced packaging design controls andextended producer responsibility or packaging andproblematic materials

CEO 3 3

b. Advocate or legislation that limits the disposal ounprocessed municipal solid waste(MSW)

CEO 3 3

c. Lobby Federal, State, and Local Government onmatters relating to prevailing council policies

CEO 3 3


2013/14 2014/15

3.3.1 Building a brandidentity that ocuseson sustainable wastesolutions

a. Promote the SMRC brand at public events Communications 3 3

b. Evaluate rebranding the SMRC CEO andCommunications 3

c. Evaluate rebranding the RRRC CEO andCommunications

3

d. Protect and promote the Recycle Right brand Communications 3 3

3.3.2 Clearly articulatingthe environmentalbenets we deliver to thebroader community

a. Promoting the outcomes SMRC achieves throughpublic and corporate communications

Communications 3 3

Objective 3.2 We operate as a relevant and innovative organisation that is responsive

Objective 3.3 Our brand is positively recognised by the community

SMRC

CORPORATEBUSINESSPL

AN

PAG

E23


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Current

perormance

(2012/13)201

Objective 3.1

We will reduce the communitys

greenhouse gas emissions romwaste through behaviouralchange

Develop Recycle Right Plan Adoption o Recycle Right Plan 3

Change in behaviour Community Attitudes Recycling Survey TBA T

Tonnes o greenhouse gas abated Greenhouse Gas Abatement or WCFtonnes o CO2-e per tonne o MSWprocessed

0.46 t CO2-e 0.4CO

Community is aware o their recyclingeects in reducing green house gases

Community Attitudes Recycling Survey TBA T

Objective 3.2

We operate as a relevant andinnovative organisation that isresponsive to the community

Community Feedback Responses < 24 work hours < 24ho

Number o submissions / positionpapers presentations

Records 3

Number o public events & CAGmeetings attended

Records 10 1

Objective 3.3

Our brand is positivelyrecognised by the community

The SMRC brand is positivelyrecognised by our stakeholders

Stakeholder Survey & CommunityAttitudes Recycling Survey

TBA T

The Recycle Right brand is positivelyrecognised

Stakeholder Survey & CommunityAttitudes Recycling Survey

No currentbenchmark

T



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5. FINANCIAL OVERVIEW

Financial Statements 2012/13 2016/17

Key Financial ResultsLong Term Financial Plan

2013/14 2014/15 2015/16 2016/17

Total Operating Revenue 25,782,536 29,428,047 32,806,519 36,922,640

Total Operating Expenditure (beore Depreciation) 24,313,684 26,721,755 29,685,696 32,884,510

Net Operating Surplus (Decit) 1,468,852 2,706,292 3,120,823 4,038,130

Reserves Transer to Reserves 795,087 1,837,229 2,202,909 3,068,531

Reserves Transer rom Reserves 1,650,000 2,475,791 2,456,254 2,480,495

Cash Backed Reserve Fund Balance 1,216,329 577,767 324,422 912,458

Cash at Bank 3,020,027 2,468,870 2,424,975 3,168,860

Outstanding Loans 32,466,304 29,133,992 25,621,241 21,917,913

Net Assets 52,386,028 48,923,127 45,655,314 42,999,857



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5. FINANCIAL OVERVIEW

Statement o Comprehensive Income - By Nature or Type

LONG TERM FINANCIAL PLAN

REVENUE 2013/14 2014/15 2015/16 2016/17

Operating Grants and Contributions 2,398,785 2,224,576 2,114,069 1,996,784

Fees and Charges 23,177,551 27,105,807 30,608,768 34,827,915

Interest Earnings 176,200 66,989 52,240 65,713

Other Revenues 30,000 30,675 31,442 32,228

Total Revenue 25,782,536 29,428,047 32,806,519 36,922,640

EXPENDITURE

Employee Costs 5,552,136 6,362,517 7,356,502 8,237,587

Materials and Contracts 12,096,291 13,179,382 14,665,757 16,6520,200

Utility Charges 2,756,278 3,233,370 3,696,733 4,002,582

Depreciation on Non-Current Assets 5,358,816 5,300,131 5,470,723 5,723,987

Interest Expenses 1,768,703 1,626,748 1,446,309 1,255,732

Insurance cost 2,140,276 2,319,738 2,520,395 2,738,409

Total Expenditure 29,672,400 32,021,886 35,156,419 38,608,497

Net Surplus (Decit) (3,889,964) (2,593,839) (2,349,900) (1,685,857)

Net Surplus beore Depreciation 1,468,852 2,706,292 3,120,823 4,038,130



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5. FINANCIAL OVERVIEW (continued)

Statement o Cash Flows Long Term Financial Plan

Operations - Receipts 2013/14 2014/15 2015/16 2016/17

Operating Grants and Contributions 2,398,785 2,224,576 2,114,069 1,996,784

Fees and Charges 21,046,190 26,792,969 30326,064 34,486,093

Interest earnings 176,200 66,989 52,240 65,713

Other revenues 30,000 30,675 31,442 32,228

Total revenue 23,651,175 29,115,209 32,523,815 36,580,818

Operations - Payments

Employee costs 4,842,696 6,258,968 7,229,494 8,125,003

Materials and contracts 9,513,374 12,881,689 14,301,611 16,265,113

Utility Charges 2,756,278 3,233,370 3,696,733 4,002,582

Interest Expenses 1,768,703 1,626,748 1,446,309 1,255,732

Insurance Cost 2,140,276 2,319,738 2,520,395 2,738,409

Total expenditure 21,021,327 26,320,513 29,194,542 32,386,839

Cash Flow rom Operations 2,629,848 2,794,696 3,329,273 4,193,979

Capital Expenditure (1,600,000) (2,475,791) (2,456,254) (2,480,495)

Cash Flow Towards Investments (1,600,000) (2,475,791) (2,456,254) (2,480,495)

New Loans 1,500,000 - - -

Loan Repayments (2,983,293) (3,332,312) (3,512,751) (3,703,328)

Reimbursements or Loan Repayments 2,259,528 2,463,250 2,594,837 2,733,729

Cash Flow Towards Financing 776,235 (869,062) (917,914) (969,599)

Net Cash Inow / (Outow) 1,806,083 (550,157) (44,895) 743,885

Opening Cash & Cash Equivalents 1,213,944 3,020,027 2,469,870 2,424,975

Closing Cash & Cash Equivalents 3,020.027 2,469,870 2,424,975 3,168,860



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5. FINANCIAL OVERVIEW (continued)

Statement o Financial PositionLong Term Financial Plan

2013/14 2014/15 2015/16 2016/17

Current Assets

Cash and Cash Equivalents 3,020,027 2,469,870 2,424,975 3,168,860

Trade and Receivables 2,131,361 2,444,199 2,726,903 3,068,725

Loan Receivables 4,058,288 3,641,749 3,202,655 2,739,739

Inventories 235,206 256,266 285,167 323,754

Total Current Assets 9,444,882 8,812,084 8,639,700 9,301,078

Non-Current Assets


Property, Plant & Equipment 50,526,997 47,702,657 44,688,189 41,444,696

Total Non-Current Assets 78,935,013 73,194,900 67,106,775 60,622,870

Total Assets 88,379,895 82,006,984 75,746,475 69,923,948

Current Liabilities

Trade and Other Payables 2,818,123 3,136,876 3,529,923 3,953,597

Long-term Borrowings 4,058,288 3,641,749 3,202,655 2,739,739

Provisions 555,214 636,252 735,650 823,759

Total Current Liabilities 7,431,625 7,414,877 7,468,228 7,517,095

Non-Current Liabilities


Provisions 154,226 176,737 204,347 228,822

Total Non-Current Liabilities 28,562,242 25,668,980 22,622,933 19,406,996

Total Liabilities 35,993,867 33,083,857 30,091,161 26,924,091

Net Assets 52,386,028 48,923,127 45,655,314 42,999,857

Total Equity 52,386,028 48,923,127 45,655,314 42,999,857

Retained Surplus 42,913,107 40,088,768 37,074,299 33,830,807

Reserves - Cash Backed 1,216,329 577,767 324,422 912,458

Asset Valuation Reserve 8,256,592 8,256,592 8,256,592 8,256,592

Total Equity 52,386,028 48,923,127 45,655,313 42,999,857



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6. ASSET OVERVIEW

The ollowing provides an outline o the key assets o the SMRC:

Maintenance Program Asset Management Plan

2013/14 2014/15 2015/16 2016/17Booragoon Building 1,500,000 500,000 - -

RRRC Buildings 116,900 122,745 128,882 135,236

RRRC Fixed Plant 3,150,312 3,257,408 3,517,041 3,849,491

RRRC Mobile Plant & Equip 819,688 886,909 936,217 990,691

Total Maintenance Program 4,143,900 4,145,317 4,453,258 4,840,182

Renewals Program Asset Management Plan

2013/14 2014/15 2015/16 2016/17

Booragoon Building

RRRC Buildings

RRRC Fixed Plant 1,281,390 1,509,494 1,645,968 1,665,800

RRRC Mobile Plant & Equip 648,610 466,297 810,286 494,695

Total Renewal Program 1,930,000 1,975,791 2,456,254 2,160,495

New Asset Program Asset Management Plan

2013/14 2014/15 2015/16 2016/17

RRRC Buildings 1,500,000

RRRC Fixed Plant 500,000

RRRC Mobile Plant & Equip

Total New Asset Program 1,500,000 500,000 - -



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7. WORKFORCE OVERVIEW

The ollowing provides an outline o the prole o the workorce o the SMRC:

Strategies to support the Strategic Community Plan and Corporate Business Plan

Being a responsible and considerate employer

a. Develop and implement a workorce attraction and retention policy

b. Review and implement Annual Sta Training Program based on organisational and proessional needs

c. Understand current and uture workorce capability

Chie Executive Ofcer

Community

Engagement Ofcer

Executive Manager

Corporate Services

Executive Manager

Strategic Projects

Executive Manager

RRRC Operations

AdministrativeEnvironmentalFinancial Services

Materials Recovery

Facility

Waste Composting

Facility

Administrative

Services

Asset ManagementGreen Waste

FacilityHuman Resources

Workorce Prole

Employees 75

Administrative 21

Operational 54

Males 73%

Females 27%

English 2nd Language 26%

2012/13 Sta turnover 15%

2012 Employee Satisaction 64%



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Southern Metropolitan Regional Council

Documents

130704 FINAL Corporate Business Plan 2013-2017