2004/2005 EMRC Annual Report

ANNUAL REPORT

Providing a range of services, the EMRC’s operations aregoverned by the Council which consists of two Councillorsand a Deputy from each member Council. The Councilworks through approximately 85 skilled and dedicated staffwho work across six core business areas – Governance andCorporate Services, Waste Management and Engineering,Environmental Services, Regional Development, RiskManagement Services and the Resource Recovery Project.

WHERE WE ARE GOINGThe EMRC’s vision is to be a responsive and innovative

leader in assisting Perth’s Eastern Region to be a great placeto live, work, play and do business.

Our mission is, the EMRC, by partnering with memberCouncils and other stakeholders, facilitates strategies andprovides services for the benefit and sustainability of Perth’sEastern Region.

OUR VALUESEMRC is governed by the values of:

ExcellenceStriving for excellence through the development of

quality and continuous improvement

RecognitionValuing staff in a supportive environment that focuses

on their wellbeing

InnovationFocus on innovative approaches in projects and service

delivery

ResponsivenessDynamic and flexible service delivery

IntegrityAccountability and consistency in all that we do

Leaders ensure that the organisation’s values are createdand sustained by establishing the Council’s strategicdirection and providing an environment that encourages allstaff to reach their potential in achieving the organisationalgoals.

THE REGION WE WORK FORPerth’s Eastern Region, represented by the six member

Councils that comprise the EMRC, stretches from the edgeof the Perth CBD, along the Swan River through urbanresidential, commercial and industrial areas to the scenicSwan Valley and into the forests and prime agricultural landin the Darling Ranges.

Covering approximately one third of the Perthmetropolitan area, the region is home to approximately300,000 people from diverse cultural backgrounds, andwith population growth forecast to be around 8% perannum over the next 10 years, it is also one of the fastestgrowing regions in Western Australia.

This growth has lead to the development of a range ofattractive residential options. With everything from familybased communities through to luxury waterfrontapartments on the Swan River; the region represents a greatplace to live. With world-class wineries, an abundance ofheritage and cultural attractions, and some of the State’smost beautiful national parks and walking trails; the regionalso has lots to see and do.

Home to Western Australia’s major transport hub, theregion hosts both the international and domestic airports,along with major rail and road networks linking WA with theeast coast of Australia. This coupled with the region’sproximity to the CBD, strong service, manufacturing andengineering industries, and affordable commercial andindustrial properties; make it an ideal place in which to dobusiness and invest.

The Eastern Metropolitan Regional Council (EMRC) is a progressive and innovative regional LocalGovernment working on behalf of six member Councils – the Town of Bassendean, City of Bayswater,City of Belmont, Shire of Kalamunda, Shire of Mundaring and City of Swan.

WHO WE ARE

Annual Report 2005 1 Annual Report 20052

0406070709111416192124262733

CEO’S OVERVIEW

ELECTED REPRESENTATIVES

WASTE MANAGEMENT & ENGINEERING

REGIONAL DEVELOPMENT

RESOURCE RECOVERY PROJECT

FIVE YEAR FINANCIAL PLAN

NOTES FOR CONCISE FINANCIAL REPORT

CHAIRMAN’S REPORT

COMMITTEES

GOVERNANCE & CORPORATE SERVICES

ENVIRONMENTAL SERVICES

RISK MANAGEMENT SERVICES

STATUTORY REPORTS

FINANCIAL REPORTS

“I urge you all to experience and explorethe many wonderful places that

Perth's Eastern Region has to offer.”

In the major area of waste management, the EMRCmanaged to divert over 12,000 tonnes of greenwaste fromlandfill. During the year, filling to Stage 10 of our Class IIIcell began, and the design of Stage 2 of the Class IV cell gotunderway. EMRC continues to plan for the future and aspart of this, a large part of Red Hill farm was re-zoned to allow room for future waste management activities. An extensive drilling programme was also commenced to source underground water to give us more informationon the geology of the site.

The Environmental Services Team prepared manysubmissions on environmental initiatives and plans thataffect the region. This work is part of their regionalenvironmental advisory work for all member Councils. A new team of professional staff was also established to progress Natural Resource Management (NRM) activitiesin the Eastern Hills Sub-region.

At the same time, in Risk Management, memberCouncils saw a 15% drop in the number of workerscompensation claims.

Ernst & Young are our managing consultants to help us establish Industry Clusters for Perth’s Eastern Region.Another contract was awarded to the ARRB Group

to develop the strategy for a blueprint for transportinfrastructure in our region. This Integrated TransportStrategy is planned to guide developments for the next 20years. A third contract went to Hassell Pty Ltd. They willdevelop the Swan River Concept Plan and ManagementStrategy. This will continue to improve the environmental,social and economic value of the river to our region.

The major contract in the last year went to Cardno BSDMeinhardt for the Resource Recovery Project. Cardno BSDhave already started the vital process of consulting with thecommunities across all six Councils. Part of the ResourceRecovery Project includes examining the possibilities of aResource Recovery Park at Hazelmere and Council receivedthe report on a study of this aspect of resource recovery.

I’d like to acknowledge the work of former Chairman Cr Elizabeth Taylor. I also want to congratulate theChairmans and deputies of the EMRC committees, to thankall Councillors for their enthusiasm and input at ourmeetings, and a special thanks to the community volunteerswho gave up their valuable time to serve on the EMRC’sWaste Management Community Reference Group.

If you haven’t yet, I urge you all to visit the Perth Tourismwebsite at www.perthtourism.com.au. This fantasticwebsite features advanced search abilities that will helpyou, your friends and visitors to experience and explore the many wonderful places that Perth’s Eastern Region has to offer.

COUNCILLOR JOHN BEATONChairman

Over the last year, the EMRC’s work has continued to focus on achieving sustainable outcomes for theregion in the continued development of its strategic framework. We have implemented an internal auditcommittee, and to show the new change of purpose, the former Image Identity Review Committee is now the Regional Identity Committee.

CHAIRMAN’S REPORT

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“...the organisation continued to deliverand develop its portfolio of services

and regional projects.”

CEO’S OVERVIEW

6 Annual Report 2005

I would like to begin by congratulating everyoneinvolved in the EMRC’s 2004-05 financial year, during which the organisation continued to deliver and develop its portfolio of services and regional projects.

This year’s pleasing results have enabled us to continueon our mission, in partnership with member Councils and other stakeholders, to facilitate strategies and actionsfor the benefit and sustainability of Perth’s Eastern Region.

The key achievements highlighted throughout thisyear’s annual report can be attributed to:

The leadership and guidance provided by Council and committeesWorking in close consultation and partnership with the six member CouncilsRecruiting and retaining experienced and qualified staff at both the Red Hill Waste Management Facilityand Belmont Administration OfficeIntegrating Strategic and Business Plan actions withstaff Personal Commitment Plans to ensure theysupport EMRC’s strategic objectivesImplementing innovative business planning software to improve monitoring and progress reporting tostakeholdersA key focus of the past year has been the ongoing

development of EMRC’s approach to strategic planning. The review of EMRC’s strategic framework culminated in the development of EMRC’s Strategy Map in 2003-04.This map continues to undergo refinement and outlines

EMRC’s key outcomes and outcome objectives, along withthe core processes we will be undertaking to achieve them.We recognise that the only way we can achieve theseoutcomes and objectives is to work in close partnershipwith the six member Councils.

In an effort to strengthen the working relationship we have forged with the member Councils and improvecommunication, in 2004-05 EMRC introduced theproduction of Delegate’s Reports. Delegate’s Reports are produced for each Councillor following EMRC Councilmeetings and provide a summary of key issues andresolutions along with the implications of each decision forthat member Council. The reports also highlight upcomingprojects, activities and initiatives that have an impact on each member Council, along with relevant contactdetails if further information is required. I trust theimplementation of this communication protocol is workingwell and facilitating information exchange with greater ease.

With a new Council appointed in May 2005, I’d like to sincerely thank all Council members, as well as committee members, deputies and officers on the ChiefExecutive Officers Advisory Committee (CEOAC), TechnicalAdvisory Committee (TAC) and Strategic and SecondaryWaste Treatment Committee (SSWTC). In the last two yearsthey have so generously provided their time and energies in making a valued contribution to our activities. In particular I’d like to thank Councillor Elizabeth Taylor for the advice and support she provided me during her termas EMRC Chairman from May 2003 to May 2005.

I also extend my appreciation to the ExecutiveManagement Team for the direction they give me in myposition as Chief Executive Officer. The recent departure of two Executive Managers has provided a timely opportunityto streamline and simplify organisational structure in 2005-06.

Finally, I would like to praise the work of all EMRC staff.Their professionalism, energy and dedication towardsserving the member Councils is most valuable - everyoutcome they work to achieve brings great benefit to residents, businesses and investors in the region.

I look forward to seeing the continued development of EMRC and Perth’s Eastern Region unfold in the comingyears and I hope you do the same.

G.K. WATTERSChief Executive Officer

The EMRC, member Councils and its stakeholders can be proud of the organisation’s achievementsduring the past year and this can be directly attributed to the enthusiasm and support of our Counciland committees, to the energies and motivation of all EMRC staff and to the collaborative efforts of member Council staff.

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COMMITTEES

Annual Report 2005 7

THE CHIEF EXECUTIVE OFFICERSADVISORY COMMITTEE (CEOAC)

The CEOAC was formed to consider matters that have an impact on the member Councils and/or EMRC’sbusiness activities. Consisting of the member Council CEOsand the EMRC CEO, the CEOAC provides recommendationsto the EMRC Council.

THE TECHNICAL ADVISORYCOMMITTEE (TAC)

The TAC consists of an officer from each memberCouncil, the EMRC’s CEO and appointed deputies. The TAC reviews and provides reports on technical matters and recommendations for Council meetings.

THE STRATEGIC AND SECONDARYWASTE TREATMENT COMMITTEE(SSWTC)

The SSWTC is comprised of the members of TAC and a Councillor from each member Council. The SSWTCmeets to review and progress resource recovery activitiesfor the region.

THE REGIONAL IDENTITYCOMMITTEE (RIC)

The RIC consists of one Councillor from each memberCouncil. The RIC meets to review and develop branding for the region. The RIC was previously known as the ImageIdentity Review Committee (IIRC). The name changereflects the amended terms of reference for the committeein overseeing the development of a regional identity.

THE AUDIT COMMITTEE (AC)The AC consists of one Councillor from each member

Council. An Audit Committee was appointed as required bylaw. It guides and assists Council with audits and financialmanagement.

In order to assist with its planning and decision-making, the EMRC Council has appointed five key committees:

ELECTED REPRESENTATIVES

Cr Tina Klein, Town of Bassendean

Cr Michelle Stubbs, Town of Bassendean

Cr Mark Devlin, Town of Bassendean (Deputy)

Cr Lou Magro, City of Bayswater

Cr Barry McKenna, City of Bayswater

Cr Terry Kenyon, City of Bayswater (Deputy)

Cr Glenys Godfrey, City of Belmont

Cr Marion Blair, City of Belmont

Cr Janet Powell, City of Belmont (Deputy)

Cr Elizabeth Taylor, Shire of Kalamunda

Cr Pauline Tonkin, Shire of Kalamunda

Cr Sue Blair, Shire of Kalamunda (Deputy)

Cr John Beaton, Shire of Mundaring (Chairman)

Cr David Lavell, Shire of Mundaring

Cr Tony Cuccaro, Shire of Mundaring (Deputy)

Cr David Fardig, City of Swan (Deputy Chairman)

Cr Todd Jones, City of Swan

Cr Charlie Zannino, City of Swan (Deputy)

EMRC’s Establishment Agreement specifies that two Councillors from each member Council beappointed to the EMRC Council, whilst a third Councillor is appointed to deputise in their absence. At 30 June 2005, the appointed Council members include:


Cr Tina Klein

Cr Terry KenyonDeputy

Cr Glenys Godfrey Cr Marion Blair Cr Janet PowellDeputy

Cr Elizabeth Taylor Cr Pauline Tonkin Cr Sue BlairDeputy

Cr John BeatonChairman

Cr Michelle Stubbs Cr Mark DevlinDeputy

Cr Lou Magro Cr Barry McKenna

Cr David Lavell Cr Tony CuccaroDeputy

Cr David FardigDeputy Chairman

Cr Todd Jones Cr Charlie ZanninoDeputy

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2004-05 HIGHLIGHTS AND ACHIEVEMENTS

A key focus of the Team during the year was the continued development of the EMRC strategicframework, which has been used for the preparation of the organisation’s:

Strategic Plan

Principal Activity Plan

Individual Business Unit Plans

Annual Budget

Strategic and Business Plan actions have beensuccessfully integrated with individual staff PersonalCommitment Plans to ensure that they align with andsupport EMRC’s strategic outcomes and objectives.Innovative business planning software has been utilised toimprove monitoring and progress reporting to stakeholders.

A revised five year financial plan was developed and used as a basis for the preparation and presentation ofthe 2005-06 draft budget.

As part of facilitating continuous organisationalimprovement programmes, three member Councils(Bassendean, Kalamunda and Swan) and the EMRCcompleted a series of Excellence in Local Governmentworkshops that support the adoption of the principlesbehind the Australian Business Excellence Framework.

Corporate Services also played an important role in the promotion of regional initiatives throughout the year.Key projects undertaken include the development of publicrelations opportunities, production of EMRC’s newsletter,compilation of award submissions, and coordination of sponsorship opportunities.

Another successful Community Grants Programme wasconducted in 2004-05 to support community groups in thevicinity of the Red Hill Waste Management Facility. EMRChas provided more than $90,000 to assist a diverse range oflocal community groups since commencing the programmein 1997.

A total of $11,143 was awarded to 13 groups that receivedfunding under the 2004-05 programme:

1st Gidgegannup Scout Group

1st Mundaring Scout Group

East Gidgegannup Volunteer Bush Fire Brigade

Gidgegannup Agricultural Society Inc

Gidgegannup Community Website Inc

Gidgegannup Junior Football Club

Gidgegannup Netball Club

Gidgegannup Parents and Citizens Association

Gidgegannup Playgroup Inc

Gidgegannup Progress Association Inc

Parkerville Childrens Home

Parkerville Volunteer Bush Fire Brigade

Wooroloo Brook Land Conservation District Committee

The continued high standards of the EMRC’s corporategovernance function were further supported with the draftterms of reference for an internal audit committee beingadopted by Council in May 2005. A comprehensivecompliance checklist of the requirements under the LocalGovernment Act was also completed and will beimplemented in the 2005-06 financial year.

RECORDS MANAGEMENTThe EMRC is committed to providing compliant record

keeping practices in accordance with its Record KeepingPlan. In August 2004, EMRC’s Record Keeping Plan wasformally approved by the State Records Commission for aperiod of three years.

Document Manager is EMRC’s primary electronicdocument management system. It was introduced in July2003. Since its inception staff members have saved over40,000 documents into its two repositories.

Records Management Training forms part of theinduction process for all new staff members and thisincludes being informed of their responsibilities for corporate record keeping. The Records Officer alsoprovides a helpdesk for all Document Manager users.

The Governance and Corporate Services Team provides administrative, organisational development,human resources, information technology, financial management and marketing and communicationsupport services to the organisation, and ensure that EMRC’s operations comply with statutoryrequirements.

GOVERNANCE ANDCORPORATE SERVICES


“A key focus of the Team during the yearwas the continued development

of the EMRC's strategic framework.”

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In addition to the day-to-day business of acceptingMunicipal Solid Waste (MSW) from member Councils andcommercial waste from the private sector, a number of initiatives, developed in previous years, have beenmaintained to reduce the environmental impact of wastedisposal and soil contamination.

The greenwaste processing area enabled over 12,000tonnes of greenwaste to be diverted from landfill and workhas continued to develop products that comply withAS4454-2003 (composts, soil conditioners and mulches).

Mulch produced on site has been used to constructcontour banks on the capped areas of Stage 9 of the ClassIII landfill and such contour banks are more effective thanthe clay contour banks previously used.

Trials using compost and clay for broad acre farminghave been initiated and these will continue in 2005-06.

The area licensed by the Department of Environment toundertake soil remediation, provides member Councils andothers in the region with the capacity to remediate acidsulphate soils and other contaminated soils that are capableof being treated.

Contaminated soils that can not be remediatedeconomically will continue to be accepted into the Class IVcell. Material from contaminated sites in Midland and EastPerth were received during the year, enabling remediatedsites to be put to good use.

The concrete encapsulation service was extensivelyused and Red Hill has been featured in the BRITE (BuildingResearch Innovation Technology Environment) Report,

produced by the ‘Cooperative Research Centre forConservation Innovation’, for the work done on materialfrom the Imago site that also won a Case Earth Award.

The collection of household hazardous wastes fromresidents in the region has been expanded as part of theEMRC’s partnership with member Councils in regional wastemanagement projects. Each month, collections areundertaken at one of the member Council depots. This gaveresidents the opportunity to take their householdhazardous materials to their local Council depot twice ayear, rather than put the material in the bin where it maycause harm.

During 2004-05, drumMUSTER collections of farmchemical containers were continued and the School DryCell Battery Collection Programme expanded.

Methane gas collection and electricity generationutilising the gas was also expanded with additional gas wellsinstalled to Stages 8 and 9 of the Class III cells. This led toapproximately 16,500 mega watt hours being supplied to the electricity grid.

Filling to Stage 10 of the Class III cell began during theyear. Work on the design for Stage 2 of the Class IV cell hasbeen undertaken by EMRC staff with the assistance ofspecialist consultants. The cell will incorporate world bestpractice liner, leachate and collection technologies.

Following the re-zoning of a large portion of Red Hillfarm to allow for further waste management activities, anextensive drilling programme was commenced to sourceunderground water and gain more information on thegeology of the site. A report to obtain environmentalapproval to utilise the site has also been commissioned.

The Waste Management and Engineering Team manage and operate the Red Hill Waste ManagementFacility in such a way as to minimise the environmental impacts of waste disposal, minimise the environmental impacts of regional soil contamination and improve member Council and EMRCfinancial viability.

WASTE MANAGEMENT AND ENGINEERING

“A number of initiatives have been maintained to reduce the

environmental impact of waste disposal and soil contamination.”

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“Many projects extend across more than one Council area, allowing

for the sharing of ideas and resources to achieve a common goal.”



During the course of the last year, the Team hasprovided on-going Environmental Officer support formember Councils working on a range of activities related toenvironmental impact assessments, environmentalmanagement plans, advisory committee support andcommunity consultation for environmental activities.

The level of environmental consulting activity hascontinued to expand in the region, as member Councilshave increased interest and involvement in environmentalissues and strategies. The environmental consulting servicehas provided additional resources to assist memberCouncils address environmental management needs in aprofessional and coordinated manner.

As part of its regional environmental advisory role tomember Councils, the Environmental Services Team hasalso prepared submissions on environmental initiatives andstrategies that impact on the region, such as the Draft SwanRegion Strategy for Natural Resource ManagementInvestment Plan, Swan and Canning Rivers Management Bill,Contaminated Sites legislation, Vegetation ClearingRegulations and draft chapters of the StormwaterManagement Manual for Western Australia.

The Environmental Service has continued to provideenvironmental management support for the Red Hill WasteManagement Facility in areas such as waste acceptanceapprovals, compliance reporting, national pollutantinventory, environmental monitoring, rehabilitation and thedevelopment of operating procedures related to theEnvironmental Management System (EMS).

The Team has also been involved in a number ofregional projects on behalf of EMRC member Councils andother Local Governments. Many projects extended acrossmore than one Council area, allowing for the sharing ofideas and resources to achieve a common goal.

In terms of improving air and water quality, the Teamhas been actively working towards this outcome objectivethrough a range of projects.

GREENHOUSE GAS EMISSIONS AND CLIMATE CHANGE

EMRC is also tackling the emerging issue of globalwarming associated with greenhouse gas emissions throughan air quality improvement project, which is aimed at energy efficiency.

The Cities for Climate Protection (CCP) Programme hasresulted in EMRC assisting member Councils to implementtheir corporate greenhouse reduction action plans andeducate residents on practical ways in which they canreduce energy use in the home. The majority of memberCouncils participating in the programme have completedMilestone 5 and are progressing toward the next phase ofthe programme, known as CCP Plus. The EMRC, on behalf ofthe member Councils, also coordinated the preparation ofa funding application entitled “Solar Cities ResidentialProject” that seeks to create a residential renewable energymarketplace in Perth’s Eastern Region.

NATURAL RESOURCE MANAGEMENT PROJECT

The Local Government Natural Resource Management(NRM) Policy Development Project is an example of EMRCusing funding provided by the State Government to workwith Local Governments to improve the health of the SwanRiver and its catchment. In partnership with the Swan RiverTrust, this water quality improvement initiative iscoordinated by EMRC and involves 11 Councils. The projecthas continued to develop the Local Government NRMManual, which incorporates improved environmentalmanagement outcomes in both land use planning andoperational activities.

The Local Government NRM Manual provides tailoredinformation to Local Governments on a range of bestpractice planning and management techniques aimed at reducing nutrient export to the river system. Examples of policies and guidelines developed in the past yearinclude Foreshore Management, Small Rural Properties and Waste Management.

The Environmental Services Team strives for the achievement of measurable and sustainable benefitsthrough developing strong partnerships and building positive working relationships with memberCouncils and other stakeholders.

The Team’s approach to environmental sustainability is supported by key outcome objectives related to improving air and water quality, maintaining regional biodiversity and minimising the environmentalimpact of waste and regional contamination.

ENVIRONMENTAL SERVICES

(continued over page)

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Annual Report 2005

EASTERN HILLS CATCHMENTMANAGEMENT PROGRAMME

The Eastern Hills Catchment Management Programme(EHCMP) is an initiative aimed at improving land and waterquality, and maintaining biodiversity. This demonstratesEMRC’s ability to draw together a range of stakeholders toachieve common outcomes for protecting and managingthe environment.

Due to significant changes over the last 18 months in the way Natural Heritage Trust (NHT) funding isdelivered throughout Australia, and the identification of the EHCMP as a formal Sub-region of the Swan NRMRegion, in 2004-05 the EMRC established a new team of professional staff to progress NRM activities in theEastern Hills Sub-region.

The primary aim of the Eastern Hills Sub-region is todevelop and implement a Sub-regional ImplementationPlan that seeks to meet the objectives and outcomesassociated with the recently accredited Swan RegionStrategy for NRM, prepared by the Swan CatchmentCouncil in consultation with the Swan River Trust, thecommunity and Local Governments.

The new team represents an improved level of serviceto member Councils, through the ongoing placement ofstaff within key Council service areas. In addition, EHCMPis well placed to represent member Council interests andperspectives in regional NRM forums.

Working closely with the Eastern Hills CommunityLandcare network, through six catchment groups and twoLand Conservation District Committees, EHCMPcoordinates a range of activities in partnership with the member Councils. Water, natural diversity andsustainable production are the natural resource focuses of a series of assessment, planning, implementation and monitoring activities. With ongoing funding receivedfrom NHT and assistance provided by the Shires of Kalamunda and Mundaring and the City of Swan, the programme is widely recognised as one of the mostsuccessful in the Swan region.

PERTH BIODIVERSITY PROJECTMaintaining biodiversity is a key focus for a range of

environmental projects in the region and one of EMRC’skey outcome objectives. Perth’s Eastern Region hosts adiverse and unique array of native plants and animals thatcontribute to WA’s south-west being recognised as one ofthe world’s 25 biodiversity hotspots. EMRC and themember Councils are partners in the Perth BiodiversityProject, which is coordinated by the Western AustralianLocal Government Association. The project enhances thecapacity of Local Government to actively protect andmanage our local natural areas and the animals and plantsthat depend upon these ecosystems. The EMRC will beworking with member Councils over the coming years todevelop and implement local biodiversity planningguidelines prepared by the Perth Biodiversity Project.



During the last 12 months, the Regional DevelopmentTeam has continued to concentrate its efforts towardsinitiatives that make Perth’s Eastern Region an ideal business,investment and tourism destination.

INDUSTRY CLUSTERS PROJECTBased on research conducted in recent years, Regional

Development commenced the process of establishingclusters for Perth’s Eastern Region. Two important industrysectors - mining and technology services, and the heavymachinery and equipment manufacturing sector will beengaged in facilitation workshops to establish businessgrowth inhibitors, opportunities for collaboration,employment and training needs, and market developmentopportunities.

Business networks, or industry clusters are groups of similar or related businesses forming networks to worktogether in order to increase competitiveness and accelerate business growth.

Ernst & Young have been appointed as managingconsultants for the Industry Clusters Project with fundingprovided by the Australian Government - the Departmentof Transport and Regional Services through their RegionalPartnerships Programme, the Department of Industry and Resources WA and the six member Councils. The project is also supported by the Chamber of Commerce and Industry WA, the Chamber of Mineralsand Energy and the North East Metropolitan Chamber of Commerce. Key recommendations on the study will beprovided in late 2005.

ADACHI-KU DELEGATIONThe EMRC is committed to developing relationships

with international governments as a way to stimulateeconomic growth and investment opportunities for Perth’sEastern Region.

Local businesses in the region were targeted in late2004 to join EMRC on a trade mission to Adachi-ku, Japanto develop stronger ties and explore new partnerships,

develop new export markets and promote Perth’s EasternRegion as an ideal investment and tourism destination.

While the trade mission did not take place as originallyscheduled, EMRC has since engaged an EconomicAdvisor/Interpreter to undertake a vital projectmanagement role to assist the delegation develop tradeopportunities for its mission to Japan in early 2006.

REGIONAL INTEGRATEDTRANSPORT STRATEGY

A preliminary review of transport infrastructureinitiated by the member Councils, led to the EMRC,member Councils, and the Department of Planning and Infrastructure identifying the need for development of a comprehensive Regional Integrated Transport Strategy.

The Regional Integrated Transport Strategy wasadvertised by public tender in December 2004, with ARRBGroup awarded the contract to develop a strategy, that oncompletion, will provide a ‘blueprint’ for the developmentof transport infrastructure in Perth’s Eastern Region over thenext 20 years.

SWAN RIVER CONCEPT PLAN AND MANAGEMENT STRATEGY

The member Councils recognise the importance of theSwan River as the region’s significant natural asset and wishto develop a strategy to enhance its environmental, socialand economic value to Perth’s Eastern Region. Initialresearch undertaken by EMRC in early 2004 identified arange of sites located within the region that alreadycontribute, or have the potential to contribute, to theseregional values.

EMRC advertised a public tender in February 2005 toengage consultant(s) to assist with developing a concept planfor the Swan River and its environs, in the four Council areasof Bassendean, Bayswater, Belmont and Swan, that will providea shared vision for the Swan River in the region. Hassell Pty Ltdhave been appointed by EMRC to develop the overarchingSwan River Concept Plan and Management Strategy.

The Regional Development team works closely with member Councils and regional stakeholders to:

Encourage economic development in the region

Create new investment opportunities and sustainable economic growth and employment opportunities

Facilitate the growth of tourism development in the region

Increase community participation in arts, culture and recreation opportunities

REGIONAL DEVELOPMENT

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“The Regional Development Teamcontinues to work in responding to the needs of member Councils

and the region...”


RAPIDFacilitated by EMRC, the RAPID (Recreation, Advice,

Promotion and Inclusion for People with Disabilities)Programme came to an end on 30 June 2005. RAPIDdelivered support to people with disabilities residing in theCities of Belmont and Swan, as well as providing generalassistance and advice to 105 residents from other memberCouncil areas.

REGIONAL TOURISM INITIATIVESThe EMRC’s Regional Tourism Strategy entered its

seventh year, and during the year completed many excitinginitiatives that continue to promote Perth’s Eastern Regionas an ideal destination to local residents, and interstate and overseas visitors. Some of the projects undertaken in 2004-05 include:

Progressing towards completion of The Perth Hills and Swan Valley Trails Discovery Guide booklet andwebsite (www.perthtrails.com.au), for their respectivelaunch scheduled in October 2005. The aim of theproject has been to increase visitor numbers andspend in the region, by promoting the 40 or moretrails across three Council areas, and link them directlyto the extensive tourism opportunities available inclose proximity to the trails. The Guide is a majorcollaborative initiative made possible by support and funding from EMRC, Shires of Kalamunda andMundaring, City of Swan, the Department ofConservation and Land Management (CALM),LotteryWest and the Department of Sport andRecreation.

Production of the Annual Events Calendar, whichincludes nature-based recreational and tourismattractions in the region. The size of the calendar andprint run was increased to meet demand from thepublic and to cater for the vast array of events held inthe region.

Updating the Perth Tourism website(www.perthtourism.com.au) with innovativeimprovements that better showcase Perth’s EasternRegion through advanced database search facilities andfree self-managed tourism operator listings, allpresented in an easy-to-use, visually appealing format.

The continued development of an annual visitorresearch programme, with input and advice from keytourism and Council stakeholders.

Increased support for the 33rd Avon Descent byproviding spectator infrastructure and facilitating ajoint application to LotteryWest for funding theCouncils Community and Family Fun Days.

Regional promotion of the sixth Perth’s EasternAutumn Festival programme of events, through anextensive radio and public relations campaign.

EMRC’s continued support for the Swan Valley andEastern Region Visitors Centre, including holding aposition on the Board to provide regional input on abi-monthly basis.

The Tourism Development Team’s continuedinvolvement in the Perth Hills Precinct marketing andpublicity programme in partnership with the Shires ofKalamunda and Mundaring. Although the projectcoordination role was taken over by theImplementation Working Group (IWG) and the newStrategic Marketing Committee, EMRC continues tohave a presence on the IWG.

The Regional Development Team continues to work inresponding to the needs of member Councils and theregion, in implementing the Regional Tourism Strategy andkey regional economic development initiatives.

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During the year the Risk Management Team continuedto supply a range of valuable training and consultingservices to both member and client Councils, as well aswithin the organisation.

While the traditional training courses, such as SafetyInductions, Manual Handling, Chemical Safety and TrafficManagement were offered, two new training options weredeveloped; these being in the area of Risk Management forPublic Events and a formal course for Landcare Volunteers.

Regarding Traffic Management training, EMRC is one offour Registered Training Organisations, which is authorisedby Main Roads WA to deliver the new three-day AdvancedWorksite Traffic Management course. There has been muchdeliberation regarding State based (basic level) trafficmanagement training during the year and the issue is stillunresolved.

The services provided by the Team have facilitated a 15%drop in the number of workers compensation claims for thesix member Councils, as well a substantial drop in claimscosts. For some of the Councils, there has been extensivework carried out on safety systems to prepare theseCouncils for future WorkSafe Award assessments.

The application of broad-spectrum risk managementprinciples amongst the member Councils has been moreevident during the year and this has fostered a heightenedinterest in the development of Risk Registers. Facilitatingthe development of these Registers will continue to be afocus during the 2005-06 year.

With respect to EMRC itself, the Safety AdvisoryCommittee and Risk Management Co-ordinationCommittee have again been instrumental in driving thereduction of risk within the EMRC’s operations. The EMRChad three workers compensation claims for the year,compared to six in 2003-04.

The EMRC Risk Management Safety Handbook wasupdated during the year and continues to be a popular toolused by both member and non-member Councilsthroughout Western Australia. Just under a thousandcopies were sold throughout the year, and these haveproven to be an important element of the inductionprocess for more than 20 Councils.

The EMRC Inter-Council Comparison Schemecontinued to benchmark performance in the area of injuryprevention and fleet accidents. The number of Councilsparticipating in the scheme remains at 17, with a newCouncil scheduled to join the Scheme later in 2005. This Scheme provides Local Government with a valuableyard-stick against which to measure the performance of individual Councils. While not fixing any risk problems,the process has shown itself to be a valuable tool in motivating management to direct more of their time and effort toward risk management matters.

A special project, essentially completed during the year,was the development of a new Occupational Health andSafety (OH&S) Code of Practice for the Waste ManagementAssociation Australia (WA). This required input from all RiskManagement staff and helped to consolidate the expertisethe Service has in this area.

With a staffing level that now offers greaterspecialisation and flexibility for the client base, the comingyear will see services more tailored to meet the specific needs of member Councils and other clients.Other specific new service options will be offered, such as the new mandatory WorkSafe Construction WorkerSafety Training. These services will support more focusedprogrammes, which will result in fewer injuries and reducedaccident costs.

The Risk Management Services Team assists member Councils and other clients to prevent accidents,injuries and losses in their workplaces. It does this by helping to identify risks and develop practicalplans to deal with them. Operating since 1993, the Service delivers safety and risk management trainingcourses as well as providing consultancy services to meet the individual needs of clients. The trainingcourses equip staff with the skills they need to deal with the hazards they face in the workplace, whilstthe Team’s consulting work supports the development of the client’s risk management plans and helpsthem stay abreast of legislative changes and new safety related practices.

RISK MANAGEMENT SERVICES


“The Risk Management Services Teamassists member Councils and other clients to prevent accidents, injuries

and losses in their workplaces.”

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After re-tendering the contract for the Project’sconsultancy services, Council resolved to award thecontract to Cardno BSD Meinhardt Joint Venture in September 2004, with the exception of the contractadministration task which will be re-tendered at a later date.The contract value is between $727,000 and $849,000 (ex GST) depending upon the type of contract for theresource recovery facility.

Cardno BSD Meinhardt commenced work on theconsultancy contract in December 2004. Completion of thevarious tasks is expected to take until 2010-11.

Work completed or underway includes the following:

Development of the Project Management Plan and Project Schedule

Development of the Community ConsultationProgramme

Completion of the six local Community Informationand Feedback sessions

Development of the EMRC Participant ConsultationProgramme

Completion of round one of the member CouncilConsultation Programme

Completion of the Task 2 report – PreliminaryTechnical and Financial Assessment

Commencement of Task 7 – Financial Models

Market research on community attitudes to wastemanagement

Monthly reporting by the consultant

Monthly meetings of the Project Advisory Groupwhich involves the TAC Officers

In order to engage the residents of Perth’s Eastern Regionthrough the Community Consultation Programme, the R-Gang website (www.rgang.org.au) has been updated,information packs prepared, a press release was issuedannouncing the commencement of the consultation process and advertisements were placed in communitynewspapers about the six local Community Information and Feedback Sessions.

The next stage of the Community ConsultationProgramme will be the two regional workshops to be heldin October 2005 and February 2006. These workshops willidentify key issues and concerns, develop evaluation criteriaand weightings, and recommend preferred solutions.

The concept study for a resource recovery park at Hazelmere was finalised during the year and reported tothe SSWTC and Council. The results from this study byEnvision NZ provide important input to the mainconsultancy contract. In May 2005, Envision NZcoordinated a study tour of resource recovery parks in the eastern states of Australia which the ProjectDevelopment Manager attended and reported on to committee and Council.

Other activities completed during the year include:

An audit of the member Council waste stream by Anne Prince Consultants

An audit of the member Council recycling bins by Dallywater Consultants

Continued involvement in the Southern Metropolitan

The Resource Recovery Project Team is working to develop and implement a resource recovery system that recognises the importance of waste minimisation, and maximises social, environmental and economic benefits to the region. The Project’s key objective is to have a fully operational resourcerecovery solution in place by 2010 or sooner which would involve a resource recovery facility and/orresource recovery park.

RESOURCE RECOVERY PROJECT

Annual Report 2005

Regional Council’s Compost Steering committee to oversee the development and marketing of the regional resource recovery centre compost

Continuation of the SSWTC which is involved in the development of the Project and informed of progress in resource recovery activities in Australia and elsewhere

Attendance at the 2004 Waste and RecycleConference

WASTE MANAGEMENT COMMUNITYREFERENCE GROUP

The Waste Management Community Reference Group(WMCRG) has continued to provide input and advice to the EMRC on waste management and waste educationissues. The WMCRG is made up of 13 members of theeastern region community. In the past year a new memberfrom Belmont was appointed to the WMCRG to replace a member who resigned.

During the 2004-05 year, the WMCRG met four timesto provide community feedback on current and futurewaste management projects. Members also participated in:

The 2004 Waste and Recycle Conference

Project briefings by consultants Cardno BSDMeinhardt Joint Venture

Waste education strategy workshop held by Mindarie Regional Council

EMRC waste audit results briefing

The Houghton’s Jazz and Wine Picnic as volunteers to monitor recycling and litter

Two workshops on the proposed regional wasteeducation strategy

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STATUTORY COMPLIANCE RETURNThe Statutory Compliance Return for the period

1 January 2004 to 31 December 2004 was completed and lodged as required. Council was able to advise that it achieved a high level of compliance with all mattersapplicable to EMRC operations.

NATIONAL COMPETITION POLICYThe Competition Principles Agreement (CPA) is a

contractual agreement between the Federal Governmentand all State and Territory Governments. As a result, LocalGovernment is committed to the CPA.

The CPA aims to ensure that all public enterprisesoperate in a transparent manner and in the best interests of the public. Under the CPA public enterprises are requiredto review their operations to ensure they have nocompetitive advantage, or disadvantage, in comparison to the private sector.

The EMRC supports the CPA concept. As such, a costbenefit analysis of our operations was conducted. The analysis concluded that none of our core services –operation of the Red Hill Waste Management Facility,Occupational Health and Safety Services, andEnvironmental Services – should be subject to CompetitiveNeutrality Principles.

Furthermore, the EMRC has not received notificationthat the Australian Bureau of Statistics has classified any ofour operations as either Public Trading or Public FinancialEnterprises.

No allegations of non-compliance with the principleshave been made against the EMRC.

PAYMENTS TO EMPLOYEESThe Local Government (Administration) Regulations

1996 prescribes under s19B that for the purposes of s.5.53(2g)of the Local Government Act 1995, the annual report of a Local Government must contain the followinginformation:

(a) The number of EMRC employees entitled to an annual salary of $100,000 or more 2 staff members

$100,000 – $110,000 $130,000 – $140,000

(b) The number of those employees 1 1with an annual salary entitlement that falls within each band of $10,000 over $100,000

PLAN FOR THE FUTURESection 5.53(2e) of the Local Government Act 1995

requires Local Governments to provide an overview of theplan for the future of the district, made in accordance withs.5.56, including major initiatives that are proposed to commence or to continue in the next financial year.

The Local Government (Administration) Regulations1996, s19C(9) Planning for the future – s.5.56 states that aLocal Government is to ensure that a plan for the future,made in accordance with this regulation, applies in respectof each financial year after the financial year ending 30 June2006. Therefore, EMRC’s Five Year Financial Plan is detailedon the following page to outline the operating income andexpenditure for the period 2004-05 to 2009-10.

STATUTORY REPORTS

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Annual Report 200526

FIVE YEAR FINANCIAL PLAN

BUDGET FORECAST2004/2005 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010

Financial SummaryOperating Income ($10,010,425) ($10,216,940) ($10,597,577) ($10,864,570) ($10,679,425) ($10,986,324) ($11,310,887)Operating Expenditure $10,329,552 $10,341,502 $10,429,799 $10,319,531 $10,204,221 $10,279,606 $10,033,078Normal Operating $319,127 $124,562 ($167,778) ($545,039) ($475,205) ($706,717) ($1,277,809)Result

Other Income ($3,559,496) ($4,420,963) (3,572,977) ($4,012,519) ($3,760,843) ($4,338,797) ($4,033,641)Other Expenditure $1,259,665 $1,889,891 $881,636 $710,677 $781,383 $1,110,943 $1,091,985Change in net assets ($1,980,704) ($2,406,510) ($2,859,119) ($3,846,880) ($3,454,665) ($3,934,571) ($4,219,465)from operations

Capital Expenditure $5,619,400 $3,617,820 $3,835,700 $3,757,500 $1,277,300 $1,558,500 $11,303,000Net Operating and $3,638,696 $1,211,310 $976,581 ($89,380) ($2,177,365) ($2,376,071) $7,083,535Capital Expenditure

Please note that all future year financial details are presented in 2005/2006 values.

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Annual Report 2005 27 28 Annual Report 2005


OPERATING STATEMENTFOR THE YEAR ENDED 30 JUNE 2005

ACTUAL BUDGET ACTUAL2004/2005 2004/2005 2003/2004

$ $ $OPERATING REVENUEGovernance 526,145 548,247 199,117General Purpose Funding 819,036 624,902 673,371Community Amenities 10,123,196 10,250,931 10,313,640Other Property and Services 1,734,028 2,145,841 1,833,234Total Revenue from Ordinary Activities 13,202,405 13,569,921 13,019,362

OPERATING EXPENSESGovernance 1,655,953 1,764,627 1,377,631Community Amenities 6,548,050 7,223,132 6,680,696Other Property and Services 2,321,498 2,570,458 2,021,553Economic Services 28,681 31,000 0Total Expenses from Ordinary Activities 10,554,182 11,589,217 10,079,880 Change in Net Assets from Operations 2,648,223 1,980,704 2,939,482


STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2005

ACTUAL ACTUAL2004/2005 2003/2004

$ $CURRENT ASSETSCash Assets 987,257 1,493,931Investments 15,801,338 12,833,589Receivables 1,187,942 1,092,473Inventory 21,046 18,656Prepayments 20,835 26,291Total Current Assets 18,018,418 15,464,940

CURRENT LIABILITIESPayables 559,177 730,030Provisions 643,306 545,368Interest Bearing Liabilities 284,370 267,318Total Current Liabilities 1,486,853 1,542,716Net Current Assets 16,531,565 13,922,224

NON CURRENT ASSETSLand 5,452,708 4,761,459Buildings 2,656,335 2,867,252Structures 2,399,159 3,177,266Plant 1,572,251 1,530,334Equipment 406,060 410,151Furniture and Fittings 118,780 113,242Work in Progress 126,416 37,282Total Non Current Assets 12,731,709 12,896,986

NON CURRENT LIABILITIESProvisions 809,697 729,487Interest Bearing Liabilities 624,312 908,682Total Non Current Liabilities 1,434,009 1,638,169Net Assets 27,829,265 25,181,041

EQUITYAccumulated Surplus 12,762,031 13,012,023Cash Backed Reserves 14,947,340 12,049,124AAS27 Adjustments 119,894 119,894Total Equity 27,829,265 25,181,041


STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2005

ACTUAL ACTUAL2004/2005 2003/2004

$ $ACCUMULATED SURPLUSBalance at the beginning of the year 13,012,023 11,886,607Change in net assets from operations 2,648,223 2,939,482Transfer from Reserves 1,459,390 3,796,328Transfer to Reserves (4,357,605) (5,610,394)Balance at the end of year 12,762,031 13,012,023

RESERVES - CASH BACKEDBalance at the beginning of the year 12,049,125 10,235,058Amount transferred from accumulated surplus 4,357,605 5,610,394Amount transferred to accumulated surplus (1,459,390) (3,796,328)Balance at the end of the year 14,947,340 12,049,124

AAS27 ADJUSTMENTSBalance at the beginning of the year 119,894 119,894Balance at the end of year 119,894 119,894Total Equity 27,829,265 25,181,041


STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 2005

ACTUAL BUDGET ACTUAL2004/2005 2004/2005 2003/2004

$ $ $CASH FLOWS FROM NORMAL OPERATING Cash receipts in the course of normal operations 10,622,300 10,330,754 10,103,770Cash payments in the course of normal operations (9,092,333) (8,291,129) (7,717,031)Interest receipts - Municipal Cash 132,893 79,671 130,411Interest payments - Loan Ascot Place (69,721) (62,300) (85,750)Net Cash Provided by Normal Operating Activities 1,593,139 2,056,996 2,431,400

CASH FLOWS FROM OTHER OPERATING Resource Recovery

Cash receipts from secondary waste charge 2,366,704 2,080,665 2,089,765Cash receipts from resource recovery project 0 100 12,735Cash payments for resource recovery project (428,847) (667,727) (274,977)Interest receipts - secondary waste restricted 292,195 229,638 165,026

Other ActivitiesInterest receipts - other restricted investments 393,948 315,593 377,934

Net Cash Provided by Other Operating Activities 2,624,000 1,958,269 2,370,483Net Cash Provided by Operating Activities 4,217,139 4,015,265 4,801,883

CASH FLOWS FROM INVESTING ACTIVITIESCash receipts from sale of assets 451,315 933,500 522,682Cash payments for acquisition of assets (1,940,061) (5,619,400) (3,756,199)Net Cash Provided by Investing Activities (1,488,746) (4,685,900) (3,233,517)

CASH FLOWS FROM FINANCE ACTIVITIESCash payments - loan principal repayments (267,318) (267,319) (251,290) Net Cash Used in Financing Activities (267,318) (267,319) (251,290)

SUMMARY OF CASH FLOWSCash at the beginning of the year 14,327,520 14,327,520 13,010,444Net Increase (Decrease) in Cash Held 2,461,075 (937,954) 1,317,076Cash at the end of the year 16,788,595 13,389,566 14,327,520

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OPERATING STATEMENTTotal Operating Revenue of $13,202,405 as at 30 June

2005 is approximately $183,000 greater than the 2003-04actual operating revenue and approximately $368,000below budgeted provisions.

Total Operating Expenses of $10,554,182 areapproximately $474,000 greater than the 2003-04 actualoperating expenses and approximately $1,035,000 belowbudget for 2004-05.

The overall change in net assets resulting fromoperations of $2,648,223 is approximately $291,000 less thanthe level of 2003-04 and approximately $667,000 greaterthan the 2004-05 budget.

STATEMENT OF FINANCIALPOSITION

The value of land as at 30 June 2005 reflects an increaseof approximately $691,000 from the stated value as at 30June 2004. This is predominantly as a result of buffer landpurchased adjoining the Red Hill site.

The value of buildings reflects a decrease ofapproximately $211,000 from the previous year. This isattributable primarily to the depreciation of buildingsduring the year together with the demolition, andsubsequent write-off (approximately $94,000), of the housethat was located at 222 Great Eastern Highway (adjoiningthe EMRC administration building) in preparation for theconstruction of a car parking area.

The value of structures reflects a decrease of approximately $778,000 from the stated value as at 30 June 2004. This is mainly attributable to the written-down (depreciated) value of the Class III Stage 10 and ClassIV waste disposal cells (approximately $637,000). This valueis calculated based on the percentage of usage during the year compared to the total capacity of the wastedisposal cell.

Current liabilities as at 30 June 2005 have decreasedapproximately $56,000 in comparison to the level stated asat 30 June 2004.

Current assets as at 30 June 2005 have increasedapproximately $2,553,000 in comparison to the level statedas at 30 June 2004. This relates to increased cash receiptsfrom operations.

Overall equity has increased during the 2004-05financial year by $2,648,224 to $27,829,265.

STATEMENT OF CASH FLOWS The cash flows used in investing activities for 2004-05

reflects a decrease of approximately $1,816,000 capitalexpenditure from the 2003-04 financial year.

Net Cash provided by Operating Activities of $4,217,139reflects a decrease of $584,744 from the 2003-04 value of$4,801,883.

The overall impact on the cash position at the close ofthe financial year is an increase of $2,461,075 to $16,788,595.This is represented by restricted cash and investments of$15,126,895 and unrestricted cash and investments totalling$1,661,700.

CONCISE FINANCIAL REPORT The concise financial report can not be expected to

provide as full an understanding of the financialperformance, financial position and financing and investingactivities of the EMRC as the full financial report.

Further financial information can be obtained from the full financial report on request to the EMRC.

NOTES FOR CONCISE FINANCIAL REPORT

Annual Report 2005 33 Annual Report 200534Return to Contents

Annual Report 2005

VISION To be a responsive and innovative leader in assisting the EasternMetropolitan Region to be a great place to live, work, play and do business.

MISSION The Eastern Metropolitan Regional Council, by partnering withmember Councils, and other stakeholders, facilitates strategies and actions forthe benefit and sustainability of the region.

www.emrc.org.au

Documents

2004/2005 EMRC Annual Report