2006/2007 EMRC Annual Report

06 | 07E A ST E R N M E T RO P O L I TA N R E G I O N A L C O U N C I L

ANNUAL REPORT

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EMRC ANNUAL REPORT 2006/2007 « PREVIOUS

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Providing a range of services, the EMRC’s operations are

governed by a Council consisting of two Councillors and one

deputy from each member Council. The Council works

through approximately 70 skilled and dedicated staff who

work across three core divisions: Waste Management Services,

Regional Services and Corporate Services, as well as a separate

Resource Recovery Project unit.

Where we are going

The EMRC’s vision is to be a responsive and innovative

leader in assisting Perth’s Eastern Region to be a great place to

live, work, play and do business.

Our mission is: the EMRC, by partnering with member

Councils and other stakeholders, facilitates strategies and

provides services for the benefit and sustainability of Perth’s

Eastern Region.

Our values

The EMRC is governed by the values of:

EXCELLENCE

Striving for excellence through the development of quality

and continuous improvement.

RECOGNITION

Valuing staff in a supportive environment that focuses

on their wellbeing.

INNOVATION

Focus on innovative approaches in project and service delivery.

RESPONSIVENESS

Dynamic and flexible service delivery.

INTEGRITY

Accountability and consistency in all that we do.

Leaders ensure that the organisation’s values are created

and sustained by establishing the Council’s strategic direction

and providing an environment that encourages all staff to

reach their potential in achieving the organisational goals.

Advancing Perth’s Eastern Region

Each of the local government areas comprising the EMRC

is remarkable. Each adds something special to the region.

Together, however, as a single entity – a unified region with the

unified banner of ‘Perth’s Eastern Region’ – it is so much more.

Perth’s Eastern Region, stretches from the edge of the

Perth CBD, along the Swan River through urban residential,

commercial and industrial areas, to the Swan Valley’s world-

class wine district and into the forests and prime agricultural

land in the Darling Ranges.

Home to Western Australia’s major transport hub, the

region hosts both the international and domestic airports,

along with major rail and road networks linking Western

Australia with the east coast of Australia. This coupled with

the region’s proximity to the Perth CBD, strong service,

manufacturing and engineering industries, and affordable

commercial and industrial properties, make it an ideal place in

which to do business and invest.

Covering approximately one third of the Perth

metropolitan area, the region is home to approximately

300,000 people from diverse cultural backgrounds.

Together, the EMRC and the member Councils are an

economic, social and environmental force with the strength

to get things done and drive our communities forward.

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

Who We Are

EMRC ANNUAL REPORT 2006/2007 PAGE 1NEXT »

Contents

2 Chairman’s Report

4 Chief Executive Officer’sOverview

6 Organisation Structure

6 Councillor Attendance

7 Committees

7 Elected Representatives

8 Corporate Services

12 Waste ManagementServices

16 Regional Services

ENVIRONMENTAL SERVICES

REGIONAL DEVELOPMENT

RISK MANAGEMENT SERVICES

24 Resource Recovery Project

26 Statutory Reports

28 Five Year Financial Plan

30 Financial Reports

36 Notes for Concise Financial Report

Chairman’s ReportI have great pleasure as Chairman to introduce the EMRC’s 2006/2007 Annual Report.

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The regional identity will be primarily used by the EMRC

to help promote regional projects that it has been

commissioned by Council to coordinate.

Major regional projects the EMRC facilitated during

2006/2007 included:

Hosting and sponsoring the annual WA Visitor Servicing Conference

in the Swan Valley and Perth Hills in November 2006. It was the first

time the WA Visitor Servicing Conference was held in the Perth

metropolitan area and it attracted a record 112 delegates.

Conducting a cycling stakeholder workshop to find out the strength,

position and interest to progress cycling activity in Perth’s Eastern Region.

Producing the 2007 Regional Calendar of Events - distributed

to every resident in Perth’s Eastern Region.

Producing the 2007/2008 Waste & Recycling Guides for each

member Council - also distributed to every resident in Perth’s

Eastern Region.

Developing the Regional Integrated Transport Strategy.

This is a major economic development initiative aimed at increasing

government and private investment in transport infrastructure

in Perth’s Eastern Region.

Developing the Swan and Helena Rivers Management Framework

Study. The study identified a range of planning strategies aimed

at providing guidelines and standards to protect and enhance

the rivers’ values, and guide the development of precinct plans

for those member Councils with foreshore reserves on the river.

Helping member Councils collaborate to promote key events

in the region, including the Avon Descent Family Fun Days

and the Eastern Autumn Festival.

During the last year the EMRC was recognised

for the unique role it plays in facilitating a cooperative

approach among the member Councils, winning three

significant awards:

Gold in the Destination Promotion category

at the 2006 Western Australian Tourism Awards.

Winning the Australian Sister City Association

National Awards in the Commerce/Industry

category for the Belmont/EMRC Adachi Project.

The award recognised the potential for sister city

affiliations to foster trade and commerce.

Gold Certificate of Achievement from WorkSafe Western Australia

for exemplary standards in occupational health and safety.

It certainly has been a year of achievement. I thank the

Chief Executive Officer, Mr Gavin Watters, the Executive

Management Team and their staff for their expertise,

professionalism and commitment to the EMRC, the Councils

and Perth’s Eastern Region. A particular thank you goes

to my fellow Councillors who make my job of Chairman

such a pleasure.

COUNCILLOR JOHN BEATON

Chairman

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Firstly, I am extremely pleased to report that the Regional Identity Project, which the EMRC has beenprogressing for a number of years, came to fruition this year. Council endorsed the name Perth’sEastern Region to be used as a ‘regional identity’ and adopted a regional identity style guide and communications plan.

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Chief Executive Officer’s OverviewThe EMRC is proud to present an annual report that demonstrates how we facilitate strategies and actions for the benefit and sustainability of Perth’s Eastern Region, by partnering with member Councils and other stakeholders.

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The highlights and achievements set out in this year’s

report can be attributed to:

The leadership and guidance provided by our Council and

committees.

The ongoing development of EMRC’s approach to strategic planning.

The member Councils’ enthusiasm to work together and promote this

fantastic region as a great place to live, work, play and do business.

A high standard of accountability and sound governance to ensure

our operations comply with statutory requirements.

The energies and motivation of all EMRC staff.

This year the EMRC made a substantial investment in the

future of waste management in Perth’s Eastern Region.

An $8.5 million major construction project was undertaken

at the Red Hill Waste Management Facility to provide for

additional landfill capacity. The project involved constructing

a new Class II/III cell for commercial and municipal waste,

a new Class IV cell for low hazard contaminated soil,

and two new leachate ponds to provide further capacity

for the storage and treatment of leachate.

The new cells embrace a level of waste management

engineering that is currently unsurpassed in WA and equal to,

or better, than other landfills in the rest of Australia. The

design provides for the ongoing remediation of contaminated

land around the state, ensuring that the contaminated soils

are contained in a properly designed and managed landfill

and that derelict land can be put back into use.

This innovative, environmentally sound approach to waste

management demonstrates that EMRC and the Red Hill Waste

Management Facility is leading the way in best practise

waste management.

During 2006/2007, the EMRC was extremely active

in applying for grants to implement projects on behalf of,

or in collaboration with the member Councils. It is pleasing

to report that the EMRC was successful in obtaining:

$213,993 from Lotterywest for the Gordon Reid Conservation

of Natural Heritage Project aimed at increasing public awareness

of the threat of phytophthora dieback.

$161,046 from Lotterywest to promote community events over

the Multiplex Avon Descent weekend in the Town of Bassendean,

City of Bayswater, City of Belmont, City of Swan, Town of Northam

and Shire of Toodyay.

$44,550 under the Outer Metropolitan Community Fund to carry

out the Catchment Scale Weed Eradication Program in the Shire

of Kalamunda, Shire of Mundaring and City of Swan.

$27,000 from Lotterywest to assist with the production and

distribution of the 10th edition of the Regional Calendar of Events.

The above achievements represent only a small

percentage of what the Council has accomplished in the past

year. They reflect the commitment, vision and hard work

of everyone across the organisation.

My thanks go to all the Councillors, committee members,

the Executive Management Team and staff for their sustained

efforts to deliver the best possible services for the benefit and

sustainability of Perth’s Eastern Region.

I look forward to another exciting and rewarding year

working to achieve our vision for Perth’s Eastern Region.

GAVIN K WATTERS

Chief Executive Officer

EMRC ANNUAL REPORT 2006/2007 PAGE 5

I would like to begin by congratulating everyone who has contributed to the success of the EMRC in the past year, during which time the organisation continued to deliver and develop its portfolio of services and regional projects.

PAGE 6 EMRC ANNUAL REPORT 2006/2007

Finance■ Accounts■ Payroll■ Asset management

Organisational Development■ Human resources management■ Strategic and business planning■ Strategic and business reporting■ Business management system

Compliance■ Statutory compliance■ Financial compliance

Governance and Administration■ Records■ Functions management■ Agendas and minutes■ Contract management■ Council and committee support

Information Services■ Information planning and management■ Information storage and access

Marketing and Communications■ Stakeholder relationship management■ Organisational marketing and communications services■ Online communications

Red Hill Waste Management Facility■ Class I - III waste disposal■ Class IV waste disposal■ Weighbridge operation■ Red Hill administration■ Transfer station■ Recyclables recovery■ Greenwaste composting■ Greenwaste shredding and mulching■ Ferricrete production and sales■ Landfill gas control■ Leachate control and monitoring■ Household hazardous waste collection and disposal■ Dry-cell battery collection programme■ Waste education■ Waste management research

Environmental Services■ Environmental management■ Natural resource management■ Environmental consulting■ Environmental advice and advocacy■ Regional sustainability■ Regional catchment management■ Environmental research

Risk Management Services■ Occupational safety training■ Risk management consulting■ Hazard prevention■ Accident prevention■ Public liability risk surveys■ Workplace safety system audits■ Risk management research

Regional Development■ Economic development■ Regional transport■ Regional employment■ Regional tourism■ Regional information resources■ Regional development advice and advocacy■ Community development■ Regional education■ Regional development research

Chief Executive Officer

GAVIN WATTERS

Resource Recovery Project Development ManagerSTEPHEN FITZPATRICK

Waste Management ServicesExecutive Manager Waste Management ServicesBRIAN JONES

Corporate ServicesExecutive ManagerCorporate ServicesPETER SCHNEIDER

Regional ServicesExecutive Manager Regional Services MICK MCCARTHY

■ Alternative waste disposal methods■ Community education

Organisation Structure


Councillor Attendance

Cr Tina KleinCr Michelle StubbsCr Barry McKennaCr Lou MagroCr Glenys GodfreyCr Marion Blair*Cr Janet Powell**Cr Pauline TonkinCr Elizabeth TaylorCr John BeatonCr David LavellCr David FardigCr Todd Jones

DEPUTY MEMBERS

COUNCILLOR COUNCIL ORDINARYCOUNCIL (9)

REGIONALIDENTITY

COMMITTEE (2)

RESOURCERECOVERY

COMMITTEE (6)

AUDITCOMMITTEE (4)

CEO’S PERFORMANCEREVIEW

COMMITTEE (5)

Cr Mark DevlinCr Terry KenyonCr Sue BlairCr Tony CuccaroCr Charlie Zannino

BassendeanBassendeanBayswaterBayswaterBelmontBelmontBelmont

KalamundaKalamundaMundaringMundaring

SwanSwan

7974605898688

21121

2025313101311

2

1

1

2

2

2

0

1

1

0

0

0

2

5

4

6

35

4

1

2

0

31

4

34

23

2

0

10

21

2

5

5

34

5

0

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21

0

✓ A ✓ A ✓ A ✓ A ✓ A

BassendeanBayswaterKalamundaMundaring

Swan ✓ - Attended meeting A - Apology

* Cr Marion Blair resigned from the EMRC Council on 16/08/2006.

** Cr Janet Powell was appointed to the EMRC Council on 07/09/2006following the resignation of Cr Marion Blair.

At the end of the 2006/2007 financial year, the City of Belmont had not advised the EMRC of a replacement deputy member.

Audit Committee

The Audit Committee consists of one Councillor from

each member Council and was established as required by law.

It guides and assists the Council with audits and financial

management.

Chief Executive Officers Advisory Committee

The Chief Executive Officers Advisory Committee was

formed to consider matters that have an impact on the

member Councils and/or the EMRC’s business activities.

Consisting of the member Councils’ Chief Executive Officers

and the EMRC Chief Executive Officer, the committee

provides recommendations to the EMRC Council.

Chief Executive Officer Performance Review Committee

The Chief Executive Officer Performance Review

Committee consists of five Councillors and meets to review

the Chief Executive Officer’s performance, determine

performance objectives to be met by the Chief Executive

Officer and review the Chief Executive Officer’s remuneration

and contract of employment.

Regional Identity Committee

The Regional Identity Committee consists of one

Councillor from each member Council and oversees the

development of a regional identity.

Resource Recovery Committee

The Resource Recovery Committee is comprised of the

members of the Technical Advisory Committee and a Councillor

from each member Council. The committee meets to review and

progress resource recovery activities for the region.

Technical Advisory Committee

The Technical Advisory Committee consists of an officer

from each member Council, the EMRC’s Chief Executive

Officer and appointed deputies. The committee reviews and

provides reports on technical matters and recommendations

for Council meetings.

EMRC ANNUAL REPORT 2006/2007 PAGE 7

Committees

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

Elected RepresentativesThe EMRC’s Establishment Agreement specifies that two Councillors from each member Council be appointed to the EMRC Council, whilst a third Councillor is appointed to deputise in their absence.At 30 June 2007, the appointed Council members were:

CR TINA KLEINTown of Bassendean

CR MICHELLE STUBBSTown of Bassendean

CR MARK DEVLINTown of Bassendean

(Deputy)

CR LOU MAGROCity of Bayswater

CR BARRY MCKENNACity of Bayswater

CR TERRY KENYONCity of Bayswater

(Deputy)

CR GLENYS GODFREYCity of Belmont

CR JANET POWELLCity of Belmont

CR ELIZABETH TAYLORShire of Kalamunda

CR PAULINE TONKINShire of Kalamunda

CR SUE BLAIRShire of Kalamunda

(Deputy)

CR DAVID LAVELLShire of Mundaring

CR TONY CUCCAROShire of Mundaring

(Deputy)

CR DAVID FARDIGCity of Swan

(EMRC Deputy Chairman)

CR TODD JONESCity of Swan

CR CHARLIE ZANNINOCity of Swan

(Deputy)

CR JOHN BEATONShire of Mundaring(EMRC Chairman)

Corporate ServicesThroughout the year the Corporate Servicesteam provided valuable support to thedivisions and assisted in the delivery ofservices, projects and regional initiatives.


2006/2007 Highlights and Achievements

Administration and Compliance

The Administration and Compliance team continued

to provide day-to-day administration support and assistance

with compliance enquires, including the development and

implementation of automated EMRC corporate templates,

‘how to’ guides and management of statutory registers.

Key administration and compliance activities undertaken

during the year included:

The preparation of the annual statutory compliance return.

The return was completed online for the first time on the

Department of Local Government and Regional Development

website and was submitted to the department in March 2007.

The development of a Purchasing Manual and Purchasing Policy

to incorporate the new Local Government Functions and General

Regulations for providing goods or services. A briefing session

was held to inform all staff of the changes and online training

was provided for staff on how to use the new system.

Coordinating internal functions for the EMRC on-site at Ascot Place

and assisting with major corporate functions at off-site locations,

including the EMRC’s Biennial Cocktail Function in November 2006.

The Administration and Compliance team provided record

keeping in accordance with its Record Keeping Plan. In August

2004, the EMRC’s Record Keeping Plan was formally approved

by the State Records Commission for a period of three years.

A revised Record Keeping Plan will be submitted to the State

Records Office during 2007/2008 taking into account updates

and changes to EMRC’s record keeping systems.

Document Manager, the EMRC’s primary electronic

document management system introduced in July 2003,

has had 60,000 documents saved into its two repositories

by staff since its implementation.

During the year, records management training was

included as part of all new staff members’ induction process

to inform them of their responsibilities in regards to corporate

record keeping. The Records Officer also provided a helpdesk

for Document Manager users.

Financial Management

The Finance team continued to provide financial services to

the organisation, including the core processes of accounts payable

and receivable, payroll processing, assets monitoring, financial

reporting, financial forecasting and general accounting processing.

Key financial activities undertaken during the year included:

The performance of managed funds, which resulted in net returns

higher than general bank term deposit rates, following the

implementation of short-term and long-term investment strategies

in accordance with the Management of Investments Policy.

As a requirement of the Local Government (Financial Management)

Regulations 1996 (Clause 33A), a budget review was required to be

undertaken between 1 January and 31 March 2007. The review of the

EMRC 2006/2007 Annual Financial Budget was undertaken during

March and April 2007 and submitted to Council, via the Audit

Committee, for adoption. The format of the review undertaken

was based on a review by officers of all EMRC accounts (operating

income, operating expenditure and capital expenditure accounts)

within their area of responsibility.

A review of the tonnages budgeted to be received at the Red Hill

Waste Management Facility was undertaken to forecast tonnages

expected to be received by 30 June 2007. These forecasts, when

calculated against the appropriate disposal rates, provided financial

forecasts relating to:

- Base income (including landfill levy) from tonnages analysis- Secondary waste income- Landfill levy expenditure- Waste education charge income- Cell depreciation/usage

The Corporate Services team provides administration and compliance, financial management,information services, marketing and communications, and organisational development support servicesto the organisation and ensure that the EMRC’s operations comply with statutory requirements.



All forecasts, which were an actual review of the budget

provisions set against each account, were then loaded into the

financial management system to provide a more accurate

forecast of the end of year result. These reviewed results also

formed part of future financial reports, including the Five Year

Financial Plan, which was submitted to Council during budget

deliberations and will form the basis of future annual budgets.

Information Services

The information technology asset replacement program

was implemented during the year, and included:

Replacement of nine desktops and five laptops.

Replacement of a database server hosting the EMRC’s core financials,

asset management system and strategic planning system.

Implementation of a server to host the EMRC intranet. This included

the installation of Microsoft Sharepoint Services 3.0 to enable

intranet applications to use workflow and collaboration.

The following programs are currently in progress:The upgrade of Document Manager, the EMRC’s document

management system, to version 10.0.

The integration of financial data from the Arch Weighbridge System

at the Red Hill Waste Management Facility with Synergy Soft,

EMRC’s financial management system.

Corporate Services (continued)


Marketing and Communications

The Marketing and Communications team continued

to provide day-to-day marketing assistance, including

the development of public relations opportunities,

coordination of advertising, production of EMRC’s newsletter

and collateral in accordance with the corporate style guide,

and the review of content and functionality across all four

websites and intranet.

Key marketing activities undertaken during the year included:The development of a regional identity with Council endorsing

the name ‘Perth’s Eastern Region’. A regional identity style guide

and communications plan were adopted in March 2007.

Implementation of the communications plan will commence

following an official launch of the regional identity in July 2007.

Coordination of stakeholder networking events including the EMRC’s

Biennial Cocktail Function in November 2006 and the Red Hill

‘Hole in the Ground’ Celebration in May 2007.

Coordination of monthly EMRC staff information sessions to assist

with continued internal communications.

Development of an intranet for the organisation.

Providing assistance with the production of the 2007/2008 Waste &

Recycling Guides which are distributed to all households in the region

and provide information on the management and disposal of waste.

The EMRC’s Community Grants Program was again

conducted in 2006/2007 to support community groups

in the vicinity of the Red Hill Waste Management Facility.

This year’s successful grant recipients were recognised with

a cheque presentation ceremony at the 2006 Red Hill Open

Day. Under the 2006/2007 program, a total of $13,560

was awarded to 14 community groups:- Gidgegannup Agricultural Society- 1st Mundaring Scout Group- Gidgegannup Netball Club- Gidgegannup Community Website- Gidgegannup Progress Association- Mt Helena Badminton Club- Experience Gidgegannup- Gidgegannup Junior Football Club- Gidgegannup Basketball Club- Parkerville Playgroup- Gidgegannup Football Club- Wooroloo Brook Land Conservation District Committee- Gidgegannup Recreational Club- The Silver Tree Steiner School

Organisational Development

As part of ensuring the organisation remains successful,

sustainable and meets stakeholder expectations, major

improvements to key business processes and systems pursued

over the year included:A major revision of the EMRC Strategic Framework.

Implementation of a staff intranet.

Improved internal reporting functionality using innovative

software solutions.

Research to further improve web-based strategic and business

planning monitoring and reporting.

Executives, managers and staff were surveyed for their

perceptions of the organisation against the revised Australian

Business Excellence Framework. Assessment of the results will be

used in the future to assist in achieving organisational improvements

as part of the annual strategic and business planning process.

Waste Management ServicesThe Red Hill Waste Management Facility is able to minimise the environmental impactof waste disposal, regional soil contaminationand waste management operations.


The team also ensure the Red Hill Waste Management

Facility is operated in such a way as to improve member

Council and EMRC financial viability, undertake research

on waste management issues, encourage utilisation of waste

management by-products, work to improve regional waste

management practices and encourage stakeholder

commitment to waste minimisation.


Red Hill Waste Management Facility

During 2006/2007 the member Council waste disposed

of at the Red Hill Waste Management Facility was identical

(within 40 kilograms) to that disposed of in 2005/2006.

This is not withstanding substantial population growth

in the region. This stability in waste generation from member

Councils was more than matched by growth in commercial

and industrial waste, including waste from the CSBP Cresco

site in Bayswater, and resulted in a 7.8% increase in the total

waste tonnage received. Total income exceeded $13 million

which was 32% up on the budgeted income.

The construction of two new landfill cells for Class II/III

and Class IV waste was commenced in September 2006, with

the excavation and crushing of over 50,000 cubic metres

of lateritic caprock. The work was substantially completed

during the year. The project also included the construction

of two leachate ponds to provide further capacity for the

storage and treatment of leachate from the landfill.

This construction project should provide airspace capacity

until 2011/2012.

The design and construction of the landfill and leachate

ponds incorporated a number of best practice elements,

with both cells at the leading edge of landfill design for the

containment of their respective waste types. The total cost

of construction was $8.5 million and is the largest single

contract entered into by the EMRC. The majority of the design

and contract documentation, and all contract management

was conducted internally by EMRC staff.

The remediation of the CSBP Cresco site also resulted

in the Class IV Stage 1 landfill being substantially filled,

and subsequently rehabilitated, over the course of the year.

Due to the increasing demands on landfill capacity, the Red

Hill Development Plan was progressed in order to provide

direction for the development of future landfill capacity.

An application to excavate in Red Hill Farm, to the east,

was submitted to ensure all the approvals are in place on time.

Greenwaste Processing

The greenwaste processing area enabled over

11,230 tonnes of greenwaste to be diverted from landfill,

and work continued to develop products that comply with

AS4454-2003 (composts, soil conditioners and mulches).

The EMRC worked closely with the City of Bayswater

to ensure that the green waste collected in the City

of Bayswater’s kerbside greenwaste collection service

has minimal contamination. This work resulted in the City

of Bayswater’s “Three Strike” policy which was introduced

at the beginning of July 2007. The material collected from

Bayswater is composted, and new markets were developed

for the composted product. These include application

beneath turf, on-site revegetation, sale to garden centres

for blending to make topsoil and horticulture applications.

Bulk greenwaste collections delivered to the site continued

to be shredded and composted to generate mulch.

The Waste Management Services team provides advice on waste management issues to the memberCouncils. The team is also responsible for the design, documentation and supervision of worksrequired to ensure the Red Hill Waste Management Facility is able to minimise the environmentalimpact of waste disposal, regional soil contamination and waste management operations.



In addition to the ongoing use of the mulch for therehabilitation of capped areas of the landfill, further marketswere developed in the application of the mulch to parks andgardens, soft fall and aesthetics for horse jumping, use for weedsuppression and in catchment group demonstration gardens.

A total of 3,708 tonnes of mulch was sold from the site,representing growth of 46% from the previous year.

Methane Gas Collection

The Landfill Gas & Power electricity generation plant was upgraded during 2006/2007, increasing the capacity of the plant from 2.6 megawatts to 3.6 megawatts. During

this upgrade, the latest monitoring and switching equipmentwas installed, along with replacing the mufflers on the engineexhausts to reduce noise from the plant.

A drilling program was also conducted during the year,with a further 26 gas extraction wells installed on recentlycompleted landfill, bringing the total number of gas extractionwells to 378. As part of the routine maintenance of existingwells, approximately 90 wells were re-drilled to improve theirgas extraction efficiency.

Over the course of the year, 17,741 megawatt hours weregenerated, enough to power 5,400 households.

Waste Management Services (continued)


Mattress and Wood Waste Recycling

During 2006/2007, a portion of the EMRC owned land in Hazelmere was set aside for the receival of mattressesand wood waste recycling, and the necessary contractualarrangements were entered into for the shredding of woodand the purchase of wood chip. Once site works arecompleted, EMRC hopes to establish a long-term relationshipwith The Laminex Group, whereby waste wood will be recycled into particle board. Much of this wood currentlygoes to landfill.

As part of the investigations for the project, the EMRCworked with Ernst & Young to develop a study of wood wastemarkets. This study considered both the volumes and sourcesof waste timber generated in Perth’s Eastern Region, along withthe potential destinations for wood chip.

Similarly, a mattress recycling project will take wastemattresses apart to recover steel, timber and fabric. Eachproduct has an identified market and, in recycling themattresses, operations at Red Hill will be improved..

Household Hazardous Waste Collections

The collection of household hazardous wastes fromresidents in the region continued throughout the year, with a

bi-annual collection at each of the member Council depots. These collections provided residents the opportunity to safely dispose of unwanted paint, motor oil, gas cylinders,computer equipment or dry-cell/automotive batteries ratherthan put the material in the bin where they may cause harm.In addition, residents could dispose of household quantities of a wider range of household chemical waste at the Red HillWaste Management Facility throughout the year, at no charge.

The household hazardous waste program is currently fundedthrough the landfill levy until December 2007. This includes thecost of disposing of collected materials which can not be recycled.

Also during the year, drumMUSTER collections of farmchemical containers continued and the ‘School Dry-cell BatteryCollection Program’ expanded to 18 schools in the region.

On behalf of the member Councils, Waste ManagementServices, were actively involved in the Municipal WasteAdvisory Committee’s Officer Advisory Group, providedcomment on Waste Management Board position papers, were involved in the Zero Waste Plan Working Group with Department of Environment and Conservation personneland presented a submission to the Productivity CommissionInquiry into Waste Management.

Regional ServicesThis division was established in 2005 and comprises Environmental Services,Regional Development and Risk Management Services.


ENVIRONMENTAL SERVICESThe Environmental Services team strives for the

achievement of measurable and sustainable benefits through

developing strong partnerships and building positive working

relationships with member Councils and other stakeholders.

The team’s approach to environmental sustainability

is supported by key outcome objectives related to improving

air and water quality, water conservation, maintaining regional

biodiversity and minimising the environmental impact

of waste and regional contamination.


During the year, the Environmental Services team worked

in a professional and coordinated manner to deliver significant

outcomes in all areas of their operations.

Environmental Management of the Red Hill Waste

Management Facility

The service provided environmental management support

to the Red Hill Waste Management Facility in waste

acceptance approvals, compliance reporting, national

pollutant inventory, environmental monitoring, rehabilitation

and the development of operating procedures in the

Environmental Management System. Additional support was

provided in the development of an Environmental

Management Plan for the Hazelmere Timber Recycling Facility

Environmental Management Manual.

Environmental Officer Services

Environmental Officer support was provided to the Town of Bassendean, Shire of Kalamunda and Shire of Mundaring,working on a range of activities related to environmental impactassessments, environmental management plan developmentand implementation, advisory committee support andcommunity consultation for environmental activities.

The Shires of Kalamunda and Mundaring have

subsequently employed full-time Environmental Officers

and therefore service provision for these Councils has evolved

to provide project officer support roles to assist the member

Councils in developing and delivering strategic projects.

In addition, the EMRC provided Environmental Reserves

Officer and Bushcare Officer services for the Shire of

Kalamunda. As well as Friends Group support and

management planning development and implementation for

reserves, the EMRC Environmental Services team also assisted

the Shire in the development of a draft Friends Group Manual.

Project Officer Roles

Particular highlights during the year included projects

initiated by the member Councils that will provide a sound

strategic basis on which to build effective and sustainable

environmental practices. Projects in this category include:

A State of the Environment reporting process for the

Shire of Mundaring.

A Local Biodiversity Strategy for the Shire of Kalamunda.

Developing a desktop assessment for an Environmental Plan

for the City of Bayswater.

Continuing to implement the Town of Bassendean’s Environment Plan.

Initiating development of a Local Biodiversity Strategy for the

Town of Bassendean, City of Bayswater and City of Belmont.

Developing a draft Private Land Conservation Strategy for the

Shire of Mundaring.

Advice to Member Councils

Advice to member Councils was provided on the

implications for local governments on a range of state

and federal government statutes, policies and initiatives.

These included the Draft State Water Plan, Draft Swan

and Canning Rivers Management Regulations, and Draft

The new structure provides improved efficiency and has facilitated closer working relationshipsbetween the services, with a number of joint initiatives being identified and pursued.



State-wide Policy No 17, the Draft 100-year Biodiversity

Conservation Strategy for Western Australia and the Draft

Healthy Rivers Action Plan. Through this advice, the member

Councils were able to stay up-to-date on regulatory

and policy initiatives that may impact local government.

The EMRC also took a lobbying and advocacy role

in advising the Minister of Environment and relevant state

government agencies on the need for the Western Australian

Government to take a lead role in the delivery of natural

resource management (NRM) in WA.

Perth Solar City Project

The EMRC and the member Councils were part of the

Perth Solar City Consortium seeking funding under

the Australian Government’s Solar Cities Funding Program,

a $75 million initiative in energy efficiency and demand

management, smart metering and distributed solar

technologies across Australia. A detailed business case was

submitted in April 2006.

Major Regional Environmental Projects

The Eastern Hills Catchment Management Program

(EHCMP) is an initiative aimed at improving land quality, water

quality and maintaining biodiversity. The program is a highly

successful partnership between the Shires of Kalamunda

and Mundaring, City of Swan and the EMRC. The program aims

to achieve a coordinated strategic approach to the restoration

of land, bush land and creek lines.

The EHCMP is a sub-region of the Swan natural resource

management region and aims to achieve the relevant

objectives and outcomes set through the Swan Region

Strategy for Natural Resource Management. This is achieved

through the establishment of strong working relationships

with the participating member Councils and supporting

and building community capacity in the Eastern Hills area.

Additionally the EHCMP continued its strong working

partnership with the Swan River Trust, delivering water quality

and community capacity building outcomes.

The EHCMP, in collaboration with community and local

government, secured over $460,000 in external funding

in the 2006/2007 financial year for on-ground projects in the

region. Many projects extended across more than one Council

area and provided opportunities for the sharing of ideas

and resources to achieve a common goal.

Discussions between Environmental Officers across

Australia indicates the level of community involvement

in landcare and bushcare in the Eastern Hills is amongst the

highest levels in Australia. EMRC and member Council staff

have begun documenting the landcare/bushcare engagement

model used in the Eastern Hills to identify success factors

and encourage other regions to build and sustain their

community networks.

The Natural Resource Management Policy Development

Project is a partnership between the Swan River Trust

and local governments. It is coordinated and delivered through

the EMRC, to improve the health of the Swan River and its

catchment. This water quality improvement initiative involves

11 Councils, including all six of EMRC’s member Councils.

The manual, a key deliverable of the project, provides

tailored information to local governments on a range of best

practice planning and management techniques aimed

at reducing nutrient export to the river system. During

the year, a primary focus was on erosion and sediment control

for local government, land developers and builders through

regional forums and training modules. The project also

Regional Services (continued)


led to the development of Guidelines for Small Rural

Properties and a Community-Based Source Controls case

studies paper.

The EMRC is also tackling the emerging issue of global

warming associated with greenhouse gas emissions through

an air quality improvement project aimed at energy efficiency.

Through the Cities for Climate Protection (CCP) Program,

an initiative of the International Council for Local

Environmental Initiatives (ICLEI), the EMRC assisted all the

member Councils and the City of South Perth to implement

their corporate greenhouse action plans and work with

residents on practical ways in which they can reduce home

energy use. The majority of member Councils participating

in the program are progressing toward the phase known

as CCP Plus.

The Water Campaign Program is also an initiative of ICLEI

and uses the same milestone structure as CCP to assist

Councils in addressing water conservation and water quality

issues. The EMRC is currently supporting five member

Councils and the City of South Perth to progress through the

milestone process. All Councils supported by the EMRC

achieved milestone one in 2005/2006, and in 2006/2007

most achieved milestone two (setting targets) and three

(developing action plans for corporate and community

actions). The EMRC has signed a Memorandum

of Understanding with ICLEI, which underpins and reinforces

the regional support role provided to the member Councils

in the delivery of environmental and sustainability outcomes

related to ICLEI initiatives.

In November 2006, the EMRC received funding for

the implementation of a Dieback Communication Plan

for Western Australia. This project is a partnership project with

the Dieback Working Group and the Swan Catchment Council.

The major targets for the project are to develop and pilot

a series of community engagement initiatives using

the community-based social marketing methodology.

The project will include the use of surveys and focus groups

to establish baseline data on behaviour and measure changes

resulting from the pilot’s implementation.

Environmental Management for Ascot Place

Support for the EMRC’s Environmental Policy

Implementation Group, which has responsibility for leadership

and implementing initiatives in sustainable management of the

EMRC’s Ascot Place premises, was continued in 2006/2007.

During the year, the Environmental Policy Implementation

Group continued to address issues related to reducing carbon

emissions from the EMRC car fleet through the Carbon Neutral

Program, as well as recycling, energy efficiency and water

conservation initiatives.

REGIONAL DEVELOPMENT

The role of the Regional Development team is to work

collaboratively with member Councils and regional

stakeholders to:

Encourage sustainable economic development in the region.

Facilitate the growth and promotion of tourism in the region.

Increase community participation in arts, culture and recreation

opportunities.


The Regional Development team continued to

concentrate its efforts towards initiatives that make Perth’s

Eastern Region an attractive business, investment and tourism

destination. Two advisory groups facilitated by the EMRC,

the Economic Development Officers Group and the Visitor

Servicing Advisory Group, proved to be effective

in information exchange amongst member Councils and in the

provision of advice to the EMRC on economic and tourism

development issues.

Industry Clusters Project

Business networks, or ‘industry clusters’, are groups

of similar or related businesses forming networks to work

together in order to increase competitiveness and accelerate

business growth.

Based on research conducted in previous years, the Regional

Development team progressed the establishment of an industry

cluster for Perth’s Eastern Region, focusing on the mining

and technology services, metals fabrication and equipment

manufacturing sectors. Specific issues being considered from

a cluster perspective include the development and retention

of skills, resource sharing, collaborative tendering and strategies

to enhance business growth and sustainability.

The cluster has formalised its structure through the

formation of a cooperative and is known as the Engineering

and Manufacturing Industry Cooperative Limited. Key activities


for the coming year relate to expanding the membership base

(currently 20) and the election of a Board of Directors.

The EMRC will continue to play an administrative and support

role for the cooperative.

Adachi-ku Delegation

The EMRC is committed to developing relationships with

international governments as a way to stimulate economic

growth and investment opportunities for Perth’s Eastern

Region. Following a request from the City of Belmont

to expand their cultural and student exchange sister-city

relationship with the Adachi-ku municipality in Japan into

trade and tourism exchange, the EMRC undertook

a delegation to Japan in early 2006 to establish business

and working relationships and is proposing to send a second

delegation to Adachi in October 2007.

The 2006 delegation resulted in the EMRC being offered

a range of promotional and business exchange opportunities,

with the major opportunity relating to a promotional video

for the Adachi City Vision screen located in a busy railway

station plaza. In early 2007 a film production company

commenced work on the video which will showcase

the tourism assets and experiences available in Perth’s Eastern

Region. The 2007 delegation visit coincides with a major

Adachi festival and will involve promotional activities

and business exchanges related to trade and exports.

Regional Integrated Transport Strategy

The EMRC commissioned the ARRB Group to undertake

the Regional Integrated Transport Strategy, a major economic

development initiative aimed at increasing government

and private investment in transport infrastructure in Perth’s

Eastern Region. The strategy has identified a range of transport

priorities and strategic initiatives that will improve road

and freight networks, encourage public transport, decrease

congestion and enhance safety and access throughout

the region.

The success of the Regional Integrated Transport Strategy

will be largely dependant upon securing federal and state

government funding to progress high priority transport

infrastructure projects and strategies. Negotiations are

currently underway to determine the required implementation

structure to ensure that the recommendations of the strategy

are supported by government and attract the necessary

financial commitments to progress priority transport

infrastructure projects and activities.

Swan and Helena Rivers Management Framework

The member Councils recognise the importance of the

Swan River as one of the region’s most significant natural

assets and are in the process of developing a strategy

and management framework to enhance its environmental,

social and economic value to Perth’s Eastern Region.

Consultants were appointed in February 2005 to undertake

the Swan and Helena Rivers Management Framework study,

which was completed to draft stage in August 2006,

and subject to a three-month public review period concluding

in December 2006. A public submissions report has been

considered by the EMRC and member Councils, with the final

report being prepared based on comments received during

the public review period.

The study identified a range of planning strategies aimed

at providing guidelines and standards for the protection

and enhancement of the rivers’ values, as well as guidance

on the development of precinct plans for those member

Councils with foreshore reserves adjacent to the rivers.



These initiatives include social benefits, environmental values,

cultural and natural heritage, design and development as well

as planning and management strategies. The EMRC

and member Councils will be working with the Swan River

Trust and the Department for Planning and Infrastructure

to implement the planning strategies and precinct plans

identified in the management framework report.

Swan Alliance

The Swan Alliance is a not-for-profit, incorporated body

that has been funded under the Australian Government’s

Career Advice Australia Program to deliver a range

of educational programs across the eastern parts of the Perth

metropolitan area. This includes three district areas known

as Local Community Partnership regions. These educational

initiatives are aimed at supporting young people who

experience difficulties in engaging in the education system

and include structured workplace learning, career

and transition support and the Adopt a School Program.

The EMRC’s Executive Manager Regional Services

is Chairman of the Swan Alliance Board and plays a key role

in assisting the region, which contains 52 high schools

and is the largest Local Community Partnership region in WA.

The partnership is responsible for implementing a range

of career advice initiatives aimed at improved educational,

training and employment outcomes in Perth’s Eastern Region

and surrounding areas.

North East Metropolitan Chamber of Commerce

The EMRC has provided funding support to the North East

Metropolitan Chamber of Commerce (NEMCC) over the last

four years to assist in the establishment of a viable regional

business association. The NEMCC undertakes a key lobbying

and advocacy role at state and federal government levels

and has played a key role in promoting business and economic

development initiatives throughout the region, such as the

‘Jobs Galore’ events.

A review of activities undertaken by the NEMCC has resultedin changes to service provision and strategic focus, with futuresupport for the regional chamber targeted toward specificprojects and outcomes as defined in a revised business plan.

Continued support for the NEMCC will be based on Council endorsement of the outcomes contained in therevised business proposal, which is expected to be completedduring 2007/2008.

Education Retention for Crime Prevention Project

As part of its Youth Strategy, the EMRC provided fundingsupport to the Hills Community Support Group. Funding willbe used to undertake a study investigating the developmentof a model to retain youth in the education system, as a keystrategy to minimise the economic and social impactsassociated with youth crime and antisocial behaviour. Youthcrime and antisocial behaviour costs the communitysignificantly in terms of damage caused by vandalism,restitution costs and security measures.

The study found there is strong anecdotal evidenceindicating that retaining youth in a structured education-based environment, early in adolescence, is a majordeterminant in reducing crime and antisocial behaviour. The study prepared a model that can be used to identify theroles and responsibilities for the various government and community sector organisations involved in this issue.

The model will assist in clarifying the lead agencies andminimising duplication amongst the key target groups requiringsupport. The Education Retention for Crime Prevention Reportwas completed in August 2006 and the EMRC has beenpartnering with the Hills Community Support Group to applyfor external funding and to engage key government agencies to progress implementation of the model.

Regional Tourism Initiatives

The EMRC’s role in promoting Perth’s Eastern Region as a tourism destination was recognised at the 2006 Western Australian Tourism Awards with Gold awarded in theDestination Promotion category.

Activities continue to be guided by the EMRC RegionalTourism Strategy and the following describes the year’s highlights:

VISITOR SERVICING

Perth’s Eastern Region’s two accredited Visitor Centresreceived funding from the EMRC to promote regionalattractions to visitors, staff and volunteers with the aim of dispersing economic and social benefits to businesses and communities throughout the region.

The EMRC and City of Swan co-sponsored the 2006 WAVisitor Servicing Conference, held in Perth’s Eastern Region in November 2006. Attended by Visitor Centre Managers fromaround the state, the conference provided an opportunity to showcase the region’s tourism assets and destinations to an audience that is important for the referral of visitors.


REGIONAL TOURISM PROMOTION AND MARKETING

The EMRC partnered with Tourism WA, Experience Perth,

local tourism associations, visitor centres and member

Councils to collaboratively market Perth’s Eastern Region

through the purchase of advertising and editorial in key media

and consumer publications. Exhibits were also held at the

Perth Royal Agricultural Show, Perth Holiday & Travel Expo,

and Perth Caravan & Camping Show where the Swan Valley

and Perth Hills Trails Discovery Guide and Perth Trails website

(www.perthtrails.com.au) were promoted.

During the year, the future purpose and function

of the regional tourism website (www.perthtourism.com.au)

was reviewed in conjunction with the member Councils

and key industry stakeholders. In 2007/2008 the website will

be redeveloped as a tool for better promotion of the region’s

events and the destination as a whole, rather than operators

who are more aligned with visitor centres.

TOURISM MARKET RESEARCH

The Perth Hills Strategic Marketing Group was supported

by the EMRC to develop a research brief to engage

consultants to research visitor motivation and destination

development challenges for this tourism precinct. The EMRC

commenced investigations into event research tools that

could be applied in Perth’s Eastern Region to determine

economic and social impacts of the significant investment

made by Councils in events.

EVENT DEVELOPMENT AND PROMOTION

The EMRC facilitated collaboration amongst the member

Councils to promote key events in the region, including

the Avon Descent Community and Family Fun Days, and Perth’s

Eastern Autumn Festival.

In 2007, design and content of the Regional Calendar

of Events was revised to give greater prominence to member

Council events. Lotterywest financial support has been

secured which will enable an increased number of calendars

to be produced in 2008 and distributed to businesses,

in addition to households. Enhancements to the Perth Tourism

website (www.perthtourism.com.au) will make the entry

of events easier for event organisers in 2008.

TRAILS PLANNING, DEVELOPMENT AND PROMOTION

The EMRC facilitated the Lotterywest funded Swan River

Trails Planning Project with the Town of Bassendean, City

of Bayswater, City of Belmont and City of Swan. Consultants

identified four priority projects that complete missing links

along the river foreshore trail and have scoped and costed

the necessary works. The report will be finalised in 2008

and its content will support funding applications for trail

development and implementation of the regional recreation

trail recommendations included within the Swan and Helena

Rivers Management Framework Report.

INVESTIGATION OF TOURISM DEVELOPMENT

ISSUES AND OPPORTUNITIES

The EMRC partnered with Experience Perth to assist

in organising and hosting a regional workshop aimed

at informing stakeholders of the ‘Innovative Partnerships

in Food Wine Tourism’ state-wide project. In addition,

the EMRC investigated the potential to grow cycling tourism

and cycling event opportunities in Perth’s Eastern Region.

Priority areas for activity have been identified and the

stakeholders involved will be developing action plans through

a number of working groups comprising of member Council

staff and state-level stakeholder representatives.



RISK MANAGEMENT SERVICES

The Risk Management 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

practical plans to deal with them. Operating since 1993, the Risk

Management Service delivers safety, risk management and traffic

management training courses as well as providing consultancy

services to meet the individual needs of clients. The training

courses equip attendees with the skills they need to deal with

hazards they face in the workplace. The primary focus of the

team’s consulting work supports the development of the client’s

risk management plans and helps them stay abreast of legislative

changes and new safety work practices.


During the year, the Risk Management team continued

to supply a range of valuable training and consulting services

to both member and client Councils, as well as within

the EMRC itself. There was a consolidation in the Risk

Management Service staffing levels in the period, producing a

better balance between demand for services and the available

resources. The service continued to facilitate the efforts

to drive down accident numbers and costs.

Risk Management Training

Traditional training courses such as Safety Inductions,

Manual Handling, Emergency Response for Wardens and Traffic

Management were offered throughout 2006/2007.

As a WorkSafe WA authorised provider of the new Safety

Awareness Training for the Construction Industry, the team

delivered many such courses for local government. Because

of the WorkSafe course, safety training attendances doubled

in the last 12 months. Since the deadline for this mandatory

training has now passed (January 2007), the latter portion of the

year saw a reduced, but still on-going, demand for this service.

In Traffic Management training, the EMRC remains one

of the main four ‘Registered Training Organisations’ authorised

by Main Roads WA to deliver their training requirements.

The EMRC was selected by Main Roads WA to deliver a ‘pilot’

course for the new Traffic Management for Events

certification. There continues to be much debate regarding

the nature of the training and assessment processes for traffic

management training in WA. The changing requirements

have re-absorbed extra resources to ensure the steady supply

of this important local government training requirement.

The services provided by the team have facilitated a 13%

drop in the number of workers compensation claims for the

six member Councils, as well a substantial drop in claims costs.

Risk Management Consulting

During 2006/2007 the EMRC maintained its position

as a member of the Human Resources Panel contract for all

state government agencies.

A notable consulting assignment during the year was to

develop a Business Continuity Plan for the City of Joondalup.

The service has not conducted a study of this size in the past

and it provided an excellent opportunity for local government

to develop expertise in this important corporate governance

related area.

With respect to the EMRC itself, the calibre of the

organisation’s safety management system was acknowledged

by WorkSafe with the EMRC receiving a Gold Award following

a detailed safety systems assessment. The Safety Advisory

Committee and Risk Management Coordination Committee

were again instrumental in driving the reduction of risk within the

EMRC’s operations. The EMRC had five workers compensation

claims and no lost-time injuries for the year. While this was two

claims up on last year, they were all of a minor nature.

Performance Benchmarking

The EMRC Inter-Council Comparison Scheme continued

to benchmark performance in the area of injury prevention

and fleet accidents. The number of Councils participating

in the scheme was 17, with the City of Mandurah joining during

the year. This scheme provides local government with a valuable

yard-stick against which to measure the performance

of individual Councils. While not reducing risk directly,

the process has shown itself to be a valuable tool in motivating

management to commit more of their time and effort to risk

management matters.

Risk Management Publications and Documents

The EMRC Risk Management Safety Handbook was

updated during the year and continues to be a popular tool

used by both member and non-member Councils throughout

Western Australia. Over 850 copies were sold throughout

the year, and the handbook has proven to be an important

element of the induction process for more than 15 Councils.

Resource Recovery ProjectThe Resource Recovery Project team is working to develop and implement a resource recovery system that recognisesthe importance of waste minimisation.



The past year was spent undertaking an intensive review

process to ensure the accuracy of information used in the

financial model and key task reports. This has included a lengthy

review of member Council costs and waste collection data,

several updates of the financial model by project consultants,

Cardno BSD Meinhardt Joint Venture, and input from

the EMRC’s independent consultant, Stevenson Consulting.

Whilst this review has slowed progress on the project,

it has been an important phase and provides the project team

confidence in proceeding to the next stages of the project.

Work completed or progressed in 2006/2007 included:

Reviewing draft reports prepared by Cardno BSD Meinhardt Joint

Venture on-site and technology assessment, waste collection systems,

the financial model and an outline of the Staging of the Facility,

Business Plan and member Council agreements and the Contract

Delivery Mechanism.

Reviewing member Council costs and waste collection data.

Reviewing technology and site option cost assumptions.

Changing the structure of the financial model to a cost-based model.

Conducting additional consultation with the Resource Recovery

Committee on an outline of the project business plan and member

Council agreements and financing options.

Completion of a report on the EMRC community engagement process.

Continuation and growth of the school dry-cell battery collection

program and school tours of the Red Hill Environmental Education Centre.

Development of the 2007/2008 Waste & Recycling Guides, which

were distributed to every household in the region.

Commencing a waste management community information column

in local community newspapers.

Signing of a Memorandum of Understanding with the Packaging

Stewardship Forum of the Australian Food and Grocery Council

to promote recycling at community events in Perth’s Eastern Region.

Committees and Advisory Groups

Meetings of the Project Advisory Group and ResourceRecovery Committee (formerly known as the Strategic and Secondary Waste Treatment Committee) were held in2006/2007 to keep member Council Councillors and officersinformed on the project’s progress.

The Regional Waste Education Steering Group metthroughout the year to consider and implement waste educationinitiatives across Perth’s Eastern Region, in accordance with theEMRC’s Waste Education and Communication Strategy.

The EMRC Resource Recovery Officer Group continued to meet and review the ongoing progress of the ResourceRecovery Project and waste education matters.

Waste Management Community Reference Group

The Waste Management Community Reference Groupcontinued to meet and review critical aspects of the ResourceRecovery Project and the EMRC’s waste education initiatives.In June 2007, a majority of the group completed threeconsecutive terms since its inception in 2002.

Key activities undertaken by the Waste ManagementCommunity Reference Group in 2006/2007 were:

Reviewing and commenting on the EMRC mattress and timber

waste processing project at the Hazelmere facility.

Reviewing and commenting on the development of the 2007/2008

Waste & Recycling Guides.

Participating in the annual Waste and Recycle Conference.

Participating in the development of a Core Volunteer Group to assist

the EMRC promote waste management and recycling in the region.

Commenting on a presentation of the project business plan, member

Council agreements and financing options.

Keeping informed on state government initiatives, including the development

of new legislation on waste management and container deposit systems.

Participating in EMRC functions, including the Red Hill Open Day,

EMRC Biennial Cocktail Function and the official opening of the

new landfill cells at the Red Hill Waste Management Facility.

The Resource Recovery Project team is working to develop and implement a resource recovery system thatrecognises the importance of waste minimisation and maximises social, environmental and economicbenefits for the region. The project’s key objective is to have a fully operational resource recovery solutionin place by 2013 or sooner, which would involve a resource recovery facility and/or resource recovery park.


Statutory ReportsThe Statutory Compliance Return achieved a high level of compliance with all matters applicable to the EMRC’s operations.


Statutory Compliance Return

The Statutory Compliance Return for the period 1 January2006 to 31 December 2006 was completed and lodged as required. Council was able to advise that it achieved a high level of compliance with all matters applicable to the EMRC’s operations.

National Competition Policy

The Competition Principles Agreement (CPA) is a contractualagreement between the federal government and all state and territory governments. As a result, local government is committed to the CPA.

The CPA aims to ensure that all public enterprises operatein a transparent manner and in the best interests of the public.Under the CPA, public enterprises are required to review theiroperations to ensure they have no competitive 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 analysisconcluded that none of our core services – operation of theRed Hill Waste Management Facility, Occupational Health and Safety Services, and Environmental Services – should be subject to Competitive Neutrality Principles.

Furthermore, the EMRC has not received notification thatthe Australian Bureau of Statistics has classified any of ouroperations as either Public Trading or Public Financial Enterprises.

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

Payments to Employees

The ‘Local Government (Administration) Regulations 1996’prescribes under r19B that for the purposes of s.5.53(2)(g) of the ‘Local Government Act 1995’, the annual report of a local government must contain the following information:

Plan for the Future

Section 5.53(2)(e) of the ‘Local Government Act 1995’requires local governments to provide an overview of the planfor the future of the district, made in accordance with s.5.56,including major initiatives that are proposed to commence or to continue in the next financial year.

The ‘Local Government (Administration) Regulations 1996’,r19C(9) Planning for the future – s.5.56 states that a localgovernment is to ensure that a plan for the future, made in accordance with this regulation, applies in respect of eachfinancial year after the financial year ending 30 June 2007.Therefore, the EMRC’s Five Year Financial Plan is detailed on the following page to outline the operating income and expenditure for the period 2006/2007 to 2010/2011.


A) THE NUMBER OF THE EMRC’S EMPLOYEES ENTITLED TO AN ANNUAL SALARY OF $100,000 OR MORE.

5 staff members

B) THE NUMBER OF THOSE EMPLOYEES WITH AN ANNUALSALARY ENTITLEMENT THAT FALLS WITHIN EACH BAND OF $10,000 OVER $100,000.

$100,000 to$109,999

1 staff member

$110000 to$119,999

1 staff member

$120,000 to$129,999

2 staff members

$160,000 to$169,999

1 staff member

Five Year Financial PlanThe Five Year Financial Plan outlines the operating income and expenditure.


FORECAST


FINANCIAL SUMMARY

Operating Income

Operating Expenditure

2007/2008 2008/2009 2009/2010 2010/2011 2011/2012

($22,221,231) ($19,472,609) ($21,504,118) ($23,719,962) ($25,601,219)

$17,872,412 $15,783,226 $17,017,186 $17,015,799 $17,719,409

NORMAL OPERATING RESULT

Other Income

Other Expenditure

($4,348,819) ($3,689,383) ($4,486,932) ($6,704,163) ($7,881,810)

($7,073,125) ($5,974,550) ($6,980,798) ($7,859,179) ($8,753,660)

$2,019,901 $1,123,599 $977,932 $1,197,238 $1,313,308

CHANGE IN NET ASSETS FROM OPERATIONS

Capital Expenditure

($9,402,043) ($8,540,334) ($10,489,798) ($13,366,104) ($15,322,162)

$9,381,930 $2,989,920 $3,032,020 $8,340,631 $11,605,151

NET OPERATING AND CAPITAL EXPENDITURE ($20,113) ($5,550,414) ($7,457,778) ($5,025,473) ($3,717,011)

Current as at the adoption of the 2007/2008 Budget on 30 August 2007.

Please note that all future year expenditure details are presented in 2007/2008 values.


Statement by Responsible EmployeeChief Executive Officer


Independent Audit ReportTo the members of the EMRC

OPERATING EXPENSES

Governance

Community Amenities

Other Property and Services

TOTAL OPERATING EXPENSES

OPERATING SURPLUS

TOTAL OPERATING REVENUE


Income StatementFor the year ended 30 June 2007

OPERATING REVENUE

Governance

General Purpose Funding

ACTUAL2005/2006

$

BUDGET2006/2007

$

ACTUAL2006/2007

$

Community Amenities

Other Property and Services

250,609

1,096,772

13,981,140

1,930,358

17,258,879

573,170

1,367,320

15,368,017

1,486,734

18,795,241

365,711

1,652,746

17,158,162

1,370,466

20,547,085

1,450,204

7,682,676

2,861,374

11,994,254

5,264,625

2,101,073

10,102,349

2,724,614

14,928,036

3,867,205

1,617,948

9,420,962

2,590,000

13,628,910

6,918,175


Balance SheetAs at 30 June 2007

TOTAL CURRENT ASSETS

CURRENT ASSETS

Cash and Cash Equivalents

Trade and Other Receivables

ACTUAL2005/2006

$

ACTUAL2006/2007

$

Inventories

Other Assets

22,440,767

1,759,980

33,456

28,916

24,263,119

24,143,745

2,222,833

14,049

35,620

26,416,247

TOTAL CURRENT LIABILITIES

CURRENT LIABILITIES

Trade and Other Payables

Provisions

Borrowings - Current Portion

759,984

701,309

302,509

1,763,802

2,940,269

782,370

321,804

4,044,443

NET CURRENT ASSETS 22,499,31722,371,804

NET ASSETS 33,093,89040,012,065

TOTAL NON CURRENT ASSETS

NON CURRENT ASSETS

Property, Plant and Equipment

Work in Progress

11,643,138

188,126

11,831,264

14,960,316

3,709,638

18,669,954

TOTAL NON CURRENT LIABILITIES

NON CURRENT LIABILITIES

Provisions

Borrowings - Long Term Portion

914,887

321,804

1,236,691

1,029,693

0

1,029,693

TOTAL EQUITY

EQUITY

Accumulated Surplus

Cash Backed Reserves

14,344,281

18,749,609

33,093,890

22,777,014

17,235,051

40,012,065


Statement of Changes in EquityFor the year ended 30 June 2007

BALANCE AT THE END OF THE YEAR

ACCUMULATED SURPLUS

Balance at the beginning of the year

Change in net assets from operations

ACTUAL2005/2006

$

ACTUAL2006/2007

$

Transfers from Reserves

Transfers to Reserves

12,881,925

5,264,625

2,192,056

(5,994,325)

14,344,281

14,344,281

6,918,175

8,093,035

(6,578,477)

22,777,014

BALANCE AT THE END OF THE YEAR

RESERVES - CASH BACKED

Balance at the beginning of the year

Amount transferred from accumulated surplus

Amount transferred to accumulated surplus

14,947,340

5,994,325

(2,192,056)

18,749,609

18,749,609

6,578,477

(8,093,035)

17,235,051

TOTAL EQUITY 33,093,89040,012,065


Cash Flow StatementFor the year ended 30 June 2007

CASH FLOWS FROM NORMAL OPERATING ACTIVITIES

CASH FLOWS FROM OPERATING ACTIVITIES

Cash receipts in the course of normal operations

Cash payments in the course of normal operations

ACTUAL2005/2006

$

BUDGET2006/2007

$

ACTUAL2006/2007

$

Interest receipts - Municipal Cash

Interest payments - Loan Ascot Place

13,004,092

(9,729,736)

167,918

(52,670)

3,389,604

12,969,549

(11,159,610)

201,987

(34,531)

1,977,395

17,291,410

(11,102,284)

319,667

(34,531)

6,474,262NET CASH PROVIDED BY NORMAL OPERATING ACTIVITIES

CASH FLOWS FROM INVESTING ACTIVITIES

Cash receipts from sale of assets

Cash payments for acquisition of assets

987,732

(1,797,065)

(809,333)

1,627,500

(7,755,996)

(6,128,496)

354,364

(9,122,364)

(8,768,000)NET CASH PROVIDED BY INVESTING ACTIVITIES

SUMMARY OF CASH FLOWS

Cash at the beginning of the year

Net increase (decrease) in cash held

16,788,595

5,652,172

22,440,767

22,440,767

(1,170,372)

21,270,395

22,440,767

1,702,978

24,143,745CASH AT THE END OF THE YEAR

CASH FLOWS FROM FINANCE ACTIVITIES

Cash payments - loan principal repayments (284,370)

(284,370)

(302,509)

(302,509)

(302,508)

(302,508)NET CASH USED IN FINANCING ACTIVITIES

CASH FLOWS FROM OTHER OPERATING ACTIVITIES

RESOURCE RECOVERY

Cash receipts from secondary waste charge

Cash receipts from resource recovery project

Cash payments for resource recovery project

Interest receipts - secondary waste investment

OTHER ACTIVITIES

Interest receipts - other restricted investments

NET CASH PROVIDED BY OTHER OPERATING ACTIVITIES

NET CASH PROVIDED BY OPERATING ACTIVITIES

2,982,189

12,106

(566,878)

484,442

444,412

3,356,271

6,745,875

2,830,873

0

(712,967)

682,644

482,688

3,283,238

5,260,633

3,233,369

15,820

(283,044)

716,284

616,795

4,299,224

10,773,486

Notes for ConciseFinancial Report


Income Statement

Total Operating Revenue of $20,547,085 as at 30 June 2007

is $3,288,206 greater than the 2005/2006 actual operating

revenue and $1,751,844 above budgeted provisions.

Total Operating Expenses of $13,628,910 are $1,634,656

greater than the 2005/2006 actual operating expenses

and approximately $1,299,126 below budget for 2006/2007.

The Operating Surplus resulting from operations

of $6,918,175 is $1,653,550 more than the level of 2005/2006

and $3,050,970 greater than the 2006/2007 budget.

Balance Sheet

Current assets as at 30 June 2007 have increased $2,153,128

in comparison to the level stated as at 30 June 2006.

This relates to increased cash receipts from operations.

Current liabilities as at 30 June 2007 have increased

$2,280,641 in comparison to the level stated as at 30 June 2006.

The value of Cash Backed Reserves has decreased by

$1,514,558 in comparison to the level stated as at 30 June 2007.

This is primarily as a result of the high level of funds utilised

from Reserve funds for capital expenditure during

the 2006/2007 financial year.

Overall equity has increased during the 2006/2007

financial year by $6,918,175 to $40,012,065.

Cash Flow Statement

The cash flows used in investing activities for 2006/2007

reflects an increase of $7,325,299 capital expenditure from

the 2005/2006 financial year.

Net Cash Provided By Operating Activities of $10,773,486

reflects an increase of $4,027,611 from the 2005/2006 value

of $6,745,875.

The overall impact on the cash position at the close

of the financial year is an increase of $1,702,978 to $24,143,745.

This is represented by restricted cash and investments

of $17,575,479 and unrestricted cash and investments totalling

$6,568,266.

Concise Financial Report

The concise financial report cannot be expected

to provide as full an understanding of the financial

performance, financial position and financing and investing

activities of the Eastern Metropolitan Regional Council

as the full financial report.

Further financial information can be obtained from the full

financial report on request to the Eastern Metropolitan

Regional Council.

PAGE 36 EMRC ANNUAL REPORT 2006/2007

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UNDARIINGMU

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MIDLAM LAND

WOORO

CHIDLOW

MT HELENA

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PERTH

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FREMANTLE

KKalaamu

Belmont

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VISION To be a responsive and innovative leader in assisting Perth’s Eastern Region to be a great place

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