CO R P O R AT E B U S I N E S S P L A N

2013-2017

CO 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. 4. 5. 6. 7. HOW TO READ THIS DOCUMENT.................................................................................................... PAGE 11 KEY FOCUS AREAS............................................................................................................................. PAGE 12 FINANCIAL OVERVIEW...................................................................................................................... PAGE 25 ASSET OVERVIEW............................................................................................................................... PAGE 29 WORKFORCE OVERVIEW.................................................................................................................. PAGE 30

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MESSAGE FROM THE CHIEF EXECUTIVE OFFICER

The Corporate Business Plan (the Plan) details the actions the Regional Council will undertake, over a four 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 reflect evolving conditions. The SMRC faces significant challenges in the short and medium term and has addressed these in the Plan by: Placing waste minimisation to landfill at the core of our business. Delivering waste management solutions that are effective and efficient. Identifying partnership opportunities to deliver waste management solutions. Working towards solutions that add value to our residual products Attracting new customers and partners to optimise our processing capacity. Delivering sustainable waste management solutions in an efficient and effective manner
T i m Yo u , C h i e f E x e c u t i v e O f f i c e r

Providing our communities with the right level of knowledge and education so that positive waste separation behaviour change happens in the household Placing education as a foundation for addressing all areas of the waste hierarchy paramount in the reduction of waste to landfill and a significant role in delivering an efficient operation. The Plan also ensures there are appropriate key performance indicators and measures of success to report to stakeholders on our annual performance. We will continue to improve and enhance our Regional Resource Recovery Centre (RRRC), so that it remains a model for other local, regional and state governments seeking sustainable solutions for 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 and recycling in local government in the State. As we divert over 70% of waste from landfill, we are already achieving the state goal of 65% by 2020. I look forward to working with our regional local government partners, community, industry and government leaders, councillors and staff to achieve a positive future for the SMRC and its communities.

The Plan also ensures there are appropriate key performance indicators and measures of success to report to stakeholders on our annual performance.

Reflecting the current commercial environment, and developing the flexibility to continually evolve as conditions change Understanding and integrating the expectations of our member councils into a governance structure that is equitable and representative

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TERMINOLOGY USED IN THIS DOCUMENT

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 of 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......... Workforce Plan

1. CORPORATE BUSINESS 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 of the Southern Metropolitan Regional Councils (SMRC) Strategic Community Plan. The Strategic Community Plan articulates long term vision, aspirations, and strategic priorities of SMRCs key stakeholders. These are reflected in the following Vision Statement:

Our Vision
We are leaders in delivering innovative and sustainable waste management solutions for the benefit of our communities and the environment

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OUR VISION
The delivery of the vision is achieved by undertaking actions across three Key Focus Areas, which are the core components of our business.

NMENT W O R I ED NV E E EL H IV T E D N

AND SUSTAIN E V I AB AT V LE O N W IN A R
Minimising waste to landfill is at the core of our business. Our communities and stakeholders are at the core of our existence. We deliver effective waste management solutions.
nd ll We supp m la ort o r f ac ste om a w

Our communities possess the right level of knowledge and education so that change happens in the household, at the grassroots of our society.

MENT SOLUT I O N AGE S AN F O R EM T ST

div er t

ity un m

deliver solutions th We at

We identify partnership opportunities to deliver waste management solutions.

Resource Recovery

Stakeholder Relationships

Education and environmental stewardship play a fundamental supporting role in all areas of the waste hierarchy.

responsibil ity hared of s

v e a ve r ts ry a b p o l u ti p u sin of u s e so lo n e h at g -te s s m o d el t e w a s t r m sustain a bl

th on e s

We work towards solutions that value add to our residual products.

Business Sustainability

Education is paramount in the reduction of waste to landfill, and play a significant role in supporting many of our operational elements.

The Corporate Business Plan follows these key focus areas that are outlined in the Strategic Community Plan, and details what the Council will do over the next four years to work towards the achievement of stakeholders aspirations and objectives. For each key focus area, the strategies and key actions are outlined. The Corporate Business Plan will drive the operation of the SMRC over the short to medium term (four year period). It will be reviewed annually where a re-prioritisation of activities will take place to ensure that the SMRC has the resources it needs to meet these priorities.
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OF FIT NE BE HE

OUR COM M U N I T IE S A

Delivering sustainable waste management solutions in an efficient and effective manner is essential to our business. Our business model must reflect the current commercial environment.

eh W li de

We must be able to understand and integrate our expectations of our member councils into a governance structure that is equitable and representative.

We must be able to meet our regulatory obligations and ensure that our capital investments are efficiently utilised.

1. CORPORATE BUSINESS PLAN

1.1 Strategic and Business Planning Framework

(continued)

All local governments within Western Australia, including Regional Councils, are required to plan for the future in accordance with Section 5.56(1) of the Local Government Act 1995 and adopt an Integrated Planning and Reporting Framework. The diagram opposite depicts this framework. The table below summarises each of the frameworks key compontents: Component Purpose Our Document

Strategic Community Plan Corporate Business Plan

To articulate the long term vision, aspirations and strategies Strategic Community Plan 2013-2023 for member councils and our communities. Details the actions the Regional Council will undertake, and resources required, over a five year period to achieve stakeholders aspirations and objectives of the Strategic Community Plan. The Operational Plan is integrated as the first year of the Corporate Business Plan. This Document

Long Term Financial Plan

Provides an outline of the financial position for SMRC for the next ten years. It indicates SMRCs long term financial sustainability and allows early identification of financial issues and their longer term impacts. The Annual Budget is integrated as the first year of the Long Term Financial Plan.

SMRC Long Tern Financial Plan 2013-2023

Asset Management Plan

Outlines how the SMRCs assets will meet the service delivery needs of the community into the future the long term sustainable management of the assets based on a whole of life and whole of organisation approach. Outlines the workforce requirements and workforce strategies for the delivery of the current and future operations of SMRC. These are specific strategies that SMRC has developed to respond specific issues, or guide SMRCs approach to a program of work.

SMRC Asset Management Plan 2013-2023

Workforce Plan

SMRC Workforce Plan 2013-2023

Issue Specific Strategies

Strategic Waste Management Plan (SWMP) Community Engagement Strategy SMRC Marketing Plan Environmental Management System (EMS) Establishment Agreement Project Participants Agreement Annual Budget for the year ended __________ of the Southern Metropolitan Regional Council

Annual Budget

The process by which the local government informs the community and statutory bodies on its progress in delivering services, projects and other operations to meet the communitys short term, medium term and long term aspirations.

Measurement & Reporting

The reporting process allows the Regional Council to inform Annual Report for the year ended its stakeholders and statutory bodies on its progress in Operating Licence Report delivering services, projects and other operations to meet the short term, medium term and long term aspirations.

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Community Engagement
STRATEGIC COMMUNITY PLAN

INFORMING STRATEGIES CORPORATE BUSINESS PLAN Finance Workforce Assets Services Issue Specific Strategic ANNUAL BUDGET Etc.

Outputs: Plan Monitoring and Annual Reporting

Measurement and Reporting

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

2. OUR STORY
2.1 How we came about
In 1991, the local governments of Canning, Cockburn, East Fremantle, Fremantle, Kwinana, Melville, and Rockingham came together to form a regional approach to waste management. The Councils realised that an individual approaches for alternative waste options would be too expensive for a single council. A solution was required for the thousands of tonnes of waste were being sent direct to landfill each year with little consideration of the future social, economic, and environmental implications. As a result, the Councils formed the Southern Metropolitan Regional Council (SMRC) to provide environmentally sustainable waste management solutions for the benefit of the community and member councils.

2.2 What we do
Southern Metropolitan Regional Council (SMRC) is a statutory local government authority representing local governments in the southern metropolitan area of Perth. It is responsible for delivering innovative and sustainable waste management solutions for our member local governments. Our five member local governments are: City of Cockburn, Town of East Fremantle, City of Fremantle, City of Kwinana and City of 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.

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There are two core projects, being: 1. The Regional Resource Recovery Centre (RRRC) Project and; 2. The Office Accommodation Project. Both the projects were established through separate project participants agreements. The City of 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 first of its kind in Western Australia, and remains a model for other local, regional, and state governments seeking sustainable solutions for waste. We operate a state of the art $100 million Regional Resource Recovery Centre at Canning Vale where we run three resource recovery facilities that form part of 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 from 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 from the kerbside of 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 of 50% for Metropolitan Perth by 2015, and 65% by 2020. As an organisation, we inject over $20 million per year into the economy, employ over 65 staff and provide work for 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 affecting, or likely to affect, the growth of metropolitan Perth in the next 50 years, as well as current and anticipated national and international factors. The Panels task was to recommend the most appropriate local government structures and governance models for metropolitan Perth. As part of the Panels findings, recommendations from the report include: Recommendation 6: The State Government consider the management of 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 Act 1995 be repealed for the metropolitan area and a transitional plan for dissolving the existing bodies in the metropolitan area be developed. Recommendation 15: A new structure of local government in metropolitan Perth be created through specific legislation which reduces the number of local governments in metropolitan Perth to 12. The State Government has made no decision on the Review Panels recommendations. Whatever happens with the Metro Review, we will continue to deliver innovative and sustainable waste management solutions for the benefit of 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 of the Municipal Waste Advisory Council (MWAC) which is a standing committee of 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 of Local Governments. Our submission should therefore be read in conjunction with previous MWAC Submissions on the Metropolitan Local Government Review Panels Issues Paper, Draft Findings and the Final Report. Our submission relates specifically to recommendations 6 and 11 of the Metropolitan Local Government Review Panels Final Report, as these have the potential to impact significantly on the SMRCs waste management activities. It should be noted, that if the Government implements all of the Panels recommendations, there will be other implications for 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 for its own region (Final Report, pg 46). It should be noted that this can be directly attributed to a defined legislative responsibility for a geographical area it is not the role of 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 that have been achieved by Regional Councils, in spite of the numerous challenges associated with the current structure, should be commended. Increased involvement by the State Government is welcomed, particularly in terms of leadership in planning and providing support and funding for future waste management needs. 3. Future challenges The Panel has not presented any solutions (other than total dissolution) for the issues facing 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 Panels recommendation 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 if it chooses to develop an alternative waste management structure in the future. 4. Impact of the reform process The current metropolitan local government reform process is having an impact on Local Governments future planning for waste management. Local Governments, Regional Councils and the private sector are understandably unwilling to commit to new projects with this level of uncertainty. 5. Response to Panel recommendations Given the complexities and costs associated with providing best practice waste management outcomes the SMRC agrees that there is a need for greater leadership and support by the State Government in overseeing the structures for waste disposal and treatment, transport and major planning. SMRC is of the view that in reaching their recommendations the Panel has not identified the current macro waste management landscape in metropolitan Perth nor properly considered the implications of a centralised approach. This should be clearly articulated before consideration of appropriate and improved alternatives. Should the Government choose to alter the waste management structure in the future and diminish the responsibilities of 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 defined legislative responsibility for any part of the waste stream and the WARR Act should be further amended to legislate responsibilities for all waste streams ie MSW, C&I and C&D.
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2. OUR STORY

(continued)
Recommendations 1. That there be three metropolitan Regional Councils based on shared objectives and binding commitments with compulsory membership for the purposes of waste management, collection, treatment and disposal. 2. Metropolitan Regional Councils be reconstituted and along more appropriate and logical geographic boundaries that reflect a north, east and south metropolitan demarcation. This would allow for economies of scale to be achieved without compromising the already high level of service offered by Local Government in the collection, treatment and disposal of waste. 3. Consideration should be given to employing more effective governance models for 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 funded from the waste levy. 5. Restoration of full hypothecation of the landfill levy for waste minimisation and recycling.

Furthermore, any legislative shift in responsibilities for waste would clearly have an impact on businesses, consumers and the Western Australian economy, thus triggering the requirement for 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 for the purposes of waste management, collection, treatment and disposal. SMRC proposes that Regional Councils are reconstituted along more appropriate geographic boundaries that reflect a north, east and south metropolitan demarcation. This would allow for economies of scale to be achieved without compromising the already high level of service offered by Local Government in the collection, recycling and disposal of waste. Consolidating Regional Councils would better reflect the proposed lower number of Local Governments and provide greater opportunity to streamline and rationalise the delivery of best practice waste management that is consistent with the waste hierarchy and State Government policy. Consideration should also be given to employing more effective governance models for Regional Councils such as employing the Regional Subsidiaries or Council Controlled Organisation Models.

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3. HOW TO READ THIS DOCUMENT

The following section outlines our three key focus areas (as outlined in the Strategic Community Plan). For each key focus area we have identified Objectives (what we aim to achieve). Each objective is supported by one or more Strategies (what we will do to achieve the objectives). For each Strategy, we have identified the key projects or programs of work. To measure if we have succeeded in delivering on the objectives, we have identified key performance indicators that we will measure and report on each year. In some cases the key performance indicators are measures of doing, and in other cases they are measures of outcomes such as changes in the communities perceptions and behaviours.

KEY PERFORMANCE INDICATORS

OBJECTIVE

STRATEGY

ACTION

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4. KEY FOCUS AREAS

Our Vision We deliver solutions that divert waste from landfill What this means
Minimising waste to landfill is at the core of our business. We deliver waste management solutions that are effective and efficient. We identify 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 of diversion from landfill. We will be recognised as leaders in our field. We will be financially sustainable and our facilities will operate close to capacity. We will offer an expanded range of services in waste management. We will be processing a wide range of waste types, including e-waste, containers, and Commercial & Industrial waste. We will be a recognised knowledge base and source of expertise in resource recovery and waste management.

Key Challenges Affecting this Activity

Our ability to communicate the environmental benefits of our processing technologies. Our ability to comply with regulatory obligations. Our ability to demonstrate our processing costs are balanced against the environmental benefits gained.

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Objective 1.1
Strategies

We will increase the volume of recyclable and recovered material

Actions Responsibility
CEO Strategic Projects Strategic Projects CEO Strategic Projects

2013/14

Timeframe 2014/15 2015/16

2016/17

Informing Documents
SMRC Marketing Plan Environmental Management System

1.1.1 Expanding the a. Prepare a Business Case to support the receipt of sources from where we commercial waste at the WCF, MRF, GWF facilities receive recovered material b. Apply for amended licence for WCF and GWF c. Apply for new operating licence for WCF and GWF 1.1.2 Extending our service offering to incorporate a wider catchment area and councils 1.1.3 Investigating new recycling opportunities to include streams such as e-waste, public place recycling and drop off services for problematic waste 1.1.4 Educating our communities to understand the importance of correct waste separation a. Source new MRF, WCF and GWF waste streams from other local governments b. Prepare Feasibility Study on the opportunity for a three bin collection system including the impact on the customer, member council and SMRC a. Prepare Feasibility Study on establishing a drop off service for new recyclables (e.g. containers, e-waste) b. Develop a market assessment for reuse/recycling of Construction and Demolition waste (C&D) a. Implement the Recycle Right Program to provide consistent messaging / guidance to community groups and stakeholders on correct waste separation b. Promote the Recycle Right Program amongst member councils as the regional recycling initiative c. Promote the Recycle Right Program to other customers

3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

Environmental Management System SMRC Marketing Plan State Waste Strategy Waste Authority Business Plan National Waste Policy State Waste Strategy SWMP State Waste Strategy

Strategic Projects

Strategic Projects

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Communications

Community Engagement Plan Recycle Right Plan Community Engagement Plan Recycle Right Plan Community Engagement Plan Recycle Right Plan

Communications

Communications

Objective 1.2
Strategies
1.2.1 Expanding the options for the sale/reuse of the recovered material

We will ensure resources recovered are reused

Actions
a. Continue to explore sustainable recycling markets b. Work with State agencies, local governments, and commercial waste operators to identify uses for problematic materials a. Increase the number of tour groups going through the RRRC b. Develop an educational module for schools

Responsibility
Strategic Projects Strategic Projects

2013/14

Timeframe 2014/15 2015/16

2016/17

Informing Documents
SMRC Marketing Plan State Waste Strategy SWMP Community Engagement Plan Recycle Right Plan Community Engagement Plan Recycle Right Plan

3 3 3

3 3 3 3

3 3 3

3 3 3

1.2.2 Educating our communities to understand the importance of the use of recovered materials

Communications

Communications

c. Promote the Recycle Right Program

Communications

Community Engagement Plan Recycle Right Plan

Objective 1.3
Strategies
1.3.1 Investigate the viability of new technologies for waste recovery

We will continue to source and develop innovative options for the recovery of waste
Actions
a. Evaluate the role of Waste to Energy for residual materials b. Develop Future Options Plan for RRRC project

Responsibility
CEO and Strategic Projects CEO

2013/14

Timeframe 2014/15 2015/16

2016/17

Informing Documents
State Waste Strategy State Agency Reports

3 3 3 3 3 3 3 3 3

Project Participants Agreement AMP National Waste Policy State Waste Strategy SWMP AMP

c. Work with Federal and State waste agencies, participate on working parties, research options 1.3.2 Investigate best use scenarios for current technology and site a. Complete final screen upgrade for WCF b. Evaluate current site potential to provide improved resource recovery options (1.1.3 & 2.2.3)

SMG

Operations Strategic Projects

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AMP

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Key Performance Indicators

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

Performance Indicator
a. Waste diverted from landfill (received at RRRC) b. Increase in volume processed through RRRC c. Growth in commercial customer base d. Contamination is reduced in WCF and MRF waste streams collected

How it will be measured

Percentage of waste diverted = (1 total residuals/total waste processed x 100%) Volume (Tonnes) of material processed (weighbridge) Percentage of annual increase in total commercial customers tonnage processed (weighbridge) Waste audits % of recyclables in the wrong bin % of non-recyclable in the yellow bin

Current performance (2012/13)

63% 107,679t Baseline 13,180t

2013/14
73% 126,505t 16% 15,289t

Timeframe 2014/15 2015/16

73% 139,275t 75% 26,752t 73% 153,829t 49% 39,741t

2016/17
73% 161,634t 16% 45,905t

43% 6.4% TBA 55% 3,000 3,428 TBA

43% 6.4% TBA 57% 5,000 4,000 TBA

42% 6.2% TBA 57% 7,500 5,000 TBA

41% 6.1% TBA 57% 7,500 6,000 TBA

40% 6.0% TBA 57% 10,000 8,000 TBA

e. Community understands the importance of correct separation Objective 1.2

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Community Attitudes towards Recycling Survey

a. Percentage recovery rate of material Weighbridge data (in and out) b. The number of people going through the RRRC c. Increase in traffic of users on Recycle Right website Visitor numbers Number of hits on the Recycle Right website Stakeholder survey

We will ensure resources recovered are reused

Objective 1.3 We will continue to source and develop innovative options for the recovery of waste

a. Member council and industry perceptions of SMRC as a leader in waste recovery

KEY FOCUS: BUSINESS SUSTAINABILITY

Our Vision We have a business model that supports the delivery of long-term sustainable waste solutions What this means
Delivering sustainable waste management solutions in an efficient and effective manner is essential to our business. Our business model must reflect the current commercial environment, and have the flexibility to continually evolve as conditions change. We must be able to understand and integrate our expectations of our member councils into a governance structure that is equitable and representative. Our capital investments are efficiently utilised and we are financially sustainable over the long term. Our business model and governance structure is appropriate to enable the delivery of our services.

Key Challenges Affecting this Activity

Changes in legislation. Potential withdrawals from the SMRC Establishment Agreement. Stakeholder support

Where will we be by 2023?

By 2023 our member councils will be receiving social and economic dividends for their investment. We understand the acceptable level of cost our member councils are willing to pay, and have priced our service accordingly.

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Objective 2.1
Strategies

Our governance model supports an effective and efficient business model

Actions Responsibility
CEO CEO Strategic Projects CEO

2013/14

Timeframe 2014/15 2015/16

2016/17

Informing Documents
Establishment Agreement Local Government Act Local Government Metropolitan Review

2.1.1 Reviewing and a. Facilitate review of SMRC Establishment Agreement improving our existing governance arrangements b. Prepare a briefing paper on viable alternative corporate structures 2.1.2 Investigating alternative business delivery models to ensure our business practices are reflective of the commercial environment a. Conduct a Feasibility Study for establishment of a 2nd waste treatment facility b. Identify opportunities and investigate the feasibility of Public-Private-Partnerships and contracts

3 3 3 3

State Waste Strategy SWMP Risk Management Plan

Objective 2.2
Strategies
2.2.1 Identifying and delivering process improvement opportunities
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We deliver operational activities efficiently

Actions
a. Undertake an Operational Process Improvement Review b. Maintain Continuous Process Improvement c. Develop a plan to monitor the performance of key machinery via measuring output volume and input resource requirements ie electricity, water

Responsibility
Operations Operations Operations

2013/14

Timeframe 2014/15 2015/16

2016/17

Informing Documents
SOP

3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

SOP SOP

2.2.2 Efficient a. Schedule and deliver an annual maintenance program management of our assets for the assets b. Develop and deliver a capital renewal plan as per the asset management and long term financial plans 2.2.3 Investigating alternative uses for our site and resources a. Evaluate current site potential for alternative uses other than resource recovery

Operations Operations Strategic Projects

AMP AMP, LTFP AMP

Objective 2.3
Strategies
2.3.1 Engaging with member councils on a formal regular basis 2.3.2 Operating within an appropriate governance structure

Our member councils are engaged and support our direction

Actions
a. Review of Regional Council Meeting structures b. Implement relevant components of the Communications Plan a. Facilitate review of SMRC Establishment Agreement b. Regularly engage member council representatives in formal meetings

Responsibility
Corporate Services SMG and Communications CEO Corporate Services

2013/14

Timeframe 2014/15 2015/16

2016/17

Informing Documents
Communications Plan

3 3 3 3 3 3 3 3 3 3

Communications Plan Establishment Agreement Local Government Act Local Government Act

Objective 2.4
Strategies
2.4.1 Achieving consensus on existing and future waste processing services business models 2.4.2 Developing a sustainable long term resourcing plan

Our Business is financially viable and sustainable

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Actions
a. Continuously evaluate costing and funding models for each activity of the business b. As required, develop Business Plans for new projects a. b. Review the LTFP annually Review AMP annually

Responsibility
Corporate Services Corporate Services Corporate Services Operations Corporate Services Corporate Services

2013/14

Timeframe 2014/15 2015/16

2016/17

Informing Documents
LTFP LTFP LTFP AMP LTFP LTFP

3 3 3 3 3 3

3 3 3 3 3 3

3 3 3 3 3 3

3 3 3 3 3 3

c. Integrate the capital works requirements from the AMP with the LTFP d. Implement the Debt Management Strategy and Reserve Fund Strategy

Objective 2.5
Strategies
2.5.1 Being a responsible and considerate employer

We value our human resources

Actions
a. Review and implement Workforce Plan b. Develop and implement a workforce attraction and retention policy c. Review and implement Annual Staff Training Program based on organisational and professional needs

Responsibility
Corporate Services Corporate Services Corporate Services Operations Operations Operations Corporate Services

2013/14

Timeframe 2014/15 2015/16

2016/17

Informing Documents
WP WP

3 3 3 3 3 3 3

3 3 3 3

3 3 3 3 3

3 3 3 3

WP WP WP WP WP

2.5.2 Providing a safe working environment

a. Implement appropriate workplace training practices b. Review the OH&S Guidelines c. Conduct regular workplace safety meetings d. Implement behaviour-based safety evaluations in performance assessments

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Key Performance Indicators

Objective
Objective 2.1 Our governance model supports an effective and efficient business model Objective 2.2 We deliver operational activities efficiently Plant availability Ratio of planned to unplanned maintenance Extent to which assets are being replaced as they reach the end of their useful lives Objective 2.3 Our member councils are engaged and support our direction Objective 2.4 Our Business is financially viable and sustainable Member councils supporting our direction Percentage of material not accepted at RRRC Maintenance Activity Records Capital Ex on replacement or renewal of assets divided by depreciation expense (expressed as a %) Stakeholder Survey 73% TBA TBA 95% TBA TBA 95% TBA TBA 95% TBA TBA 95% TBA TBA

Performance Indicator
Amended Establishment Agreement

How it will be measured

Adoption by member councils

Current performance (2012/13)

2013/14

Targets 2014/15 2015/16

2016/17

TBA

TBA

TBA

TBA

TBA

Current Ratio Operating Surplus Ratio Debt Service Cover Ratio Asset Renewal Funding Ratio

Current liabilities over current assets >1.1 Operating Surplus before depreciation over operating revenue 0- 15 Principal & Interest payment over >2 95-100 % of employees who express satisfaction at the 75% percentile or above in the employee engagement survey Number of lost time injuries Number lost time injuries X 1,000,000 / hours worked

1.1 TBA TBA TBA 64

1.1 5.7 1.16 83 70

1.1 9.2 1.37 100 75

1.1 9.5 1.44 100 75

1.2 10.9 1.62 115 80

Objective 2.5 We value our human resources

Employee satisfaction

Number of lost time incidents (LTI)

2 18 10

0 0 10

0 0 10

0 0 10

0 0 10
PA G E 2 0

Employee retention

Employee turnover (Employee numbers)

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KEY FOCUS: COMMUNITY & STAKEHOLDER RELATIONSHIPS

Our Vision We support a community of shared responsibility What this means
Our communities/stakeholders are at the core of our existence. Our communities possess the right level of knowledge and education so that change happens in the household, at the grassroots of our society. Education and environmental stewardship play a fundamental supporting role in all areas of the waste hierarchy. These are paramount in the reduction of waste to landfill, and play a significant role in supporting many of our operational elements.

Where will we be by 2023?

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 from landfill and resource recovery Our member councils and others look to us for guidance and advice in waste education and minimisation practices

Key Challenges Affecting this Activity

Change in legislation Changing Federal and State Government policy Availability of our financial, physical and human resources to deliver meaningful education and behaviour change programs

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PA G E 2 1

Objective 3.1
Strategies

We will reduce the communitys greenhouse gas emissions from waste through behavioural change
Actions Responsibility
Communications

2013/14

Timeframe 2014/15 2015/16

2016/17

Informing Documents
Community Engagement Plan Recycle Right Plan

3.1.1 Developing and a. Implement the Recycle Right Program to provide implementing a successful consistent messaging / guidance to the community community education program b. Promote the Recycle Right Program amongst member councils as the regional recycling initiative

3 3 3 3 3 3 3

3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

Communications

Community Engagement Plan Recycle Right Plan Community Engagement Plan Recycle Right Plan Community Engagement Plan Recycle Right Plan Community Engagement Plan Recycle Right Plan
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c. Actively pursue funding and partnership opportunities Communications for educational programs 3.1.2 Partnering with complementary organisations to facilitate behavioural change towards waste management and resource recovery a. Integrate waste behaviour change programs with member councils sustainability strategies b. Engage with member councils Education Officers and CAG c. Partner with the Waste Wise Schools Programs Communications

Communications

Communications

Community Engagement Plan Recycle Right Plan Recycle Right Plan

d. Develop existing relationships with Waste Authority and DEC

Communications

Objective 3.2
Strategies
3.2.1 Engaging with the community

We operate as a relevant and innovative organisation that is responsive to the community

Actions
a. Review and implement the Community Engagement Plan b. Review and implement the Recycle Right Program c. Continue to work with, and provide support to, the CAG

Responsibility
Communications Communications Communications

2013/14

Timeframe 2014/15 2015/16

2016/17

Informing Documents
Community Engagement Plan Recycle Right Plan Community Engagement Plan Recycle Right Plan National Waste Policy State Waste Strategy National Waste Policy State Waste Strategy National Waste Policy State Waste Strategy

3 3 3 3 3 3

3 3 3 3 3 3

3 3 3 3 3 3

3 3 3 3 3 3

3.2.2 Influencing Federal, State, and Local Governments in the development of regional and metropolitan waste management policies and legislation

a. Advocate for enhanced packaging design controls and extended producer responsibility for packaging and problematic materials b. Advocate for legislation that limits the disposal of unprocessed municipal solid waste(MSW) c. Lobby Federal, State, and Local Government on matters relating to prevailing council policies

CEO

CEO CEO

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Objective 3.3
Strategies
3.3.1 Building a brand identity that focuses on sustainable waste solutions

Our brand is positively recognised by the community

Actions
a. Promote the SMRC brand at public events b. Evaluate rebranding the SMRC c. Evaluate rebranding the RRRC d. Protect and promote the Recycle Right brand

Responsibility
Communications CEO and Communications CEO and Communications Communications Communications

2013/14

Timeframe 2014/15 2015/16

2016/17

Informing Documents
Communications Plan Communications Plan Communications Plan

3 3 3 3 3

3 3

3 3

3 3

Communications Plan Recycle Right Plan Communications Plan

3.3.2 Clearly articulating the environmental benefits we deliver to the broader community

a. Promoting the outcomes SMRC achieves through public and corporate communications

Key Performance Indicators

Objective Performance Indicator How it will be measured
Adoption of Recycle Right Plan Community Attitudes Recycling Survey Greenhouse Gas Abatement for WCF tonnes of CO2-e per tonne of MSW processed Community Attitudes Recycling Survey Responses Records Records Stakeholder Survey & Community Attitudes Recycling Survey Stakeholder Survey & Community Attitudes Recycling Survey TBA 0.46 t CO2-e

Current performance (2012/13)

2013/14

Targets 2014/15 2015/16

2016/17

Objective 3.1 Develop Recycle Right Plan We will reduce the communitys greenhouse gas emissions from Change in behaviour waste through behavioural Tonnes of greenhouse gas abated change

3
TBA 0.45 t CO2-e TBA < 24 work hours 3 10 TBA TBA TBA 0.44 t CO2-e TBA < 24 work hours 3 10 TBA TBA TBA 0.43 t CO2-e TBA < 24 work hours 3 10 TBA TBA TBA 0.42 t CO2-e TBA < 24 work hours 3 10
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Community is aware of their recycling effects in reducing green house gases Objective 3.2 We operate as a relevant and innovative organisation that is responsive to the community Community Feedback Number of submissions / position papers presentations Number of public events & CAG meetings attended Objective 3.3 Our brand is positively recognised by the community The SMRC brand is positively recognised by our stakeholders The Recycle Right brand is positively recognised

TBA < 24 work hours 3 10 TBA No current benchmark

TBA TBA

5. FINANCIAL OVERVIEW
Financial Statements 2012/13 2016/17

Key Financial Results

Total Operating Revenue Total Operating Expenditure (before Depreciation) Net Operating Surplus (Deficit)

2013/14
25,782,536 24,313,684 1,468,852

Long Term Financial Plan 2014/15 2015/16

29,428,047 26,721,755 2,706,292 32,806,519 29,685,696 3,120,823

2016/17
36,922,640 32,884,510 4,038,130

Reserves Transfer to Reserves Reserves Transfer from Reserves Cash Backed Reserve Fund Balance

795,087 1,650,000 1,216,329

1,837,229 2,475,791 577,767

2,202,909 2,456,254 324,422

3,068,531 2,480,495 912,458

Cash at Bank Outstanding Loans Net Assets

3,020,027 32,466,304 52,386,028

2,468,870 29,133,992 48,923,127

2,424,975 25,621,241 45,655,314

3,168,860 21,917,913 42,999,857

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PA G E 2 5

5. FINANCIAL OVERVIEW
Statement of Comprehensive Income - By Nature or Type
REVENUE Operating Grants and Contributions Fees and Charges Interest Earnings Other Revenues Total Revenue EXPENDITURE Employee Costs Materials and Contracts Utility Charges Depreciation on Non-Current Assets Interest Expenses Insurance cost Total Expenditure Net Surplus (Deficit) 5,552,136 12,096,291 2,756,278 5,358,816 1,768,703 2,140,276 29,672,400 (3,889,964) 6,362,517 13,179,382 3,233,370 5,300,131 1,626,748 2,319,738 32,021,886 (2,593,839) 7,356,502 14,665,757 3,696,733 5,470,723 1,446,309 2,520,395 35,156,419 (2,349,900) 8,237,587 16,6520,200 4,002,582 5,723,987 1,255,732 2,738,409 38,608,497 (1,685,857) LONG TERM FINANCIAL PLAN

2013/14
2,398,785 23,177,551 176,200 30,000 25,782,536

2014/15
2,224,576 27,105,807 66,989 30,675 29,428,047

2015/16
2,114,069 30,608,768 52,240 31,442 32,806,519

2016/17
1,996,784 34,827,915 65,713 32,228 36,922,640

Net Surplus before Depreciation

1,468,852

2,706,292

3,120,823

4,038,130

PA G E 2 6

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5. FINANCIAL OVERVIEW
Statement of Cash Flows
Operations - Receipts Operating Grants and Contributions Fees and Charges Interest earnings Other revenues Total revenue Operations - Payments Employee costs Materials and contracts Utility Charges Interest Expenses Insurance Cost Total expenditure Cash Flow from Operations Capital Expenditure Cash Flow Towards Investments New Loans Loan Repayments Reimbursements for Loan Repayments Cash Flow Towards Financing Net Cash Inflow / (Outflow) Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents

(continued)
Long Term Financial Plan 2014/15 2015/16
2,224,576 26,792,969 66,989 30,675 29,115,209 2,114,069 30326,064 52,240 31,442 32,523,815

2013/14
2,398,785 21,046,190 176,200 30,000 23,651,175

2016/17
1,996,784 34,486,093 65,713 32,228 36,580,818

4,842,696 9,513,374 2,756,278 1,768,703 2,140,276 21,021,327 2,629,848 (1,600,000) (1,600,000) 1,500,000 (2,983,293) 2,259,528 776,235 1,806,083 1,213,944 3,020.027

6,258,968 12,881,689 3,233,370 1,626,748 2,319,738 26,320,513 2,794,696 (2,475,791) (2,475,791) (3,332,312) 2,463,250 (869,062) (550,157) 3,020,027 2,469,870

7,229,494 14,301,611 3,696,733 1,446,309 2,520,395 29,194,542 3,329,273 (2,456,254) (2,456,254) (3,512,751) 2,594,837 (917,914) (44,895) 2,469,870 2,424,975

8,125,003 16,265,113 4,002,582 1,255,732 2,738,409 32,386,839 4,193,979 (2,480,495) (2,480,495) (3,703,328) 2,733,729 (969,599) 743,885 2,424,975 3,168,860

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PA G E 2 7

5. FINANCIAL OVERVIEW
Statement of Financial Position
Current Assets Cash and Cash Equivalents Trade and Receivables Loan Receivables Inventories Total Current Assets Non-Current Assets Loan Receivables Property, Plant & Equipment Total Non-Current Assets Total Assets Current Liabilities Trade and Other Payables Long-term Borrowings Provisions Total Current Liabilities Non-Current Liabilities Loan Receivables Provisions Total Non-Current Liabilities Total Liabilities Net Assets Total Equity Retained Surplus Reserves - Cash Backed Asset Valuation Reserve Total Equity

(continued)
Long Term Financial Plan 2014/15 2015/16
2,469,870 2,444,199 3,641,749 256,266 8,812,084 2,424,975 2,726,903 3,202,655 285,167 8,639,700

2013/14
3,020,027 2,131,361 4,058,288 235,206 9,444,882

2016/17
3,168,860 3,068,725 2,739,739 323,754 9,301,078

28,408,016 50,526,997 78,935,013 88,379,895

25,492,243 47,702,657 73,194,900 82,006,984

22,418,586 44,688,189 67,106,775 75,746,475

19,178,174 41,444,696 60,622,870 69,923,948

2,818,123 4,058,288 555,214 7,431,625

3,136,876 3,641,749 636,252 7,414,877

3,529,923 3,202,655 735,650 7,468,228

3,953,597 2,739,739 823,759 7,517,095

28,408,016 154,226 28,562,242 35,993,867 52,386,028 52,386,028 42,913,107 1,216,329 8,256,592 52,386,028

25,492,243 176,737 25,668,980 33,083,857 48,923,127 48,923,127 40,088,768 577,767 8,256,592 48,923,127

22,418,586 204,347 22,622,933 30,091,161 45,655,314 45,655,314 37,074,299 324,422 8,256,592 45,655,313

19,178,174 228,822 19,406,996 26,924,091 42,999,857 42,999,857 33,830,807 912,458 8,256,592 42,999,857

PA G E 2 8

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6. ASSET OVERVIEW
The following provides an outline of the key assets of the SMRC:
Maintenance Program Booragoon Building RRRC Buildings RRRC Fixed Plant RRRC Mobile Plant & Equip Total Maintenance Program Renewals Program Booragoon Building RRRC Buildings RRRC Fixed Plant RRRC Mobile Plant & Equip Total Renewal Program New Asset Program RRRC Buildings RRRC Fixed Plant RRRC Mobile Plant & Equip Total New Asset Program 1,281,390 648,610 1,930,000 1,509,494 466,297 1,975,791 1,645,968 810,286 2,456,254 1,665,800 494,695 2,160,495 2013/14 1,500,000 116,900 3,150,312 819,688 4,143,900 Asset Management Plan 2014/15 2015/16 2016/17 500,000 122,745 128,882 135,236 3,257,408 3,517,041 3,849,491 886,909 936,217 990,691 4,145,317 4,453,258 4,840,182

Asset Management Plan 2013/14 2014/15 2015/16 2016/17

Asset Management Plan 2013/14 2014/15 2015/16 2016/17 1,500,000 500,000 1,500,000 500,000 -

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7. WORKFORCE OVERVIEW
The following provides an outline of the profile of the workforce of the SMRC:

Workforce Profile Employees 75 Administrative Operational Males Females

Chief Executive Officer

21 54 73% 27% 26% 15% 64%

English 2nd Language 2012/13 Staff turnover 2012 Employee Satisfaction

Community Engagement Officer

Executive Manager Corporate Services

Executive Manager Strategic Projects

Executive Manager RRRC Operations

Financial Services

Environmental

Administrative

Administrative Services

Waste Composting Facility

Materials Recovery Facility

Human Resources

Green Waste Facility

Asset Management

Strategies to support the Strategic Community Plan and Corporate Business Plan Being a responsible and considerate employer a. Develop and implement a workforce attraction and retention policy b. Review and implement Annual Staff Training Program based on organisational and professional needs c. Understand current and future workforce capability
PA G E 3 0 S M R C CO R P O R AT E B U S I N E S S P L A N

Southern Metropolitan Regional Council 9 Aldous Place, Booragoon WA 6154 Tel: (08) 9329 2700 Fax: (08) 9330 6788 Web: www.smrc.com.au Email: smrc@smrc.com.au