operational plan /15 - cairns regional council · operational plan 2014-2015 #4314074v6 page 9 of...

Operational Plan

2014/15

OPERATIONAL PLAN 2014-2015

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1.0 COMMUNITY A vibrant, inclusive and healthy community with access to services and facilities which reflect its unique character, role and needs.

Strategic Action

1.1 A safe, active and healthy community

1.1.1 Support and encourage community safety initiatives including programs to

support road safety on our extensive highway and road network.

1.1.2 Encourage sporting, arts, library and cultural activities including the partnering

and development of infrastructure and programs to support a range of

learning, leisure and recreation programs.

1.1.3 Implement and enforce community health regulations and standards and

delivery a timely and effective response to emerging health issues.

1.2 A community with fair and reasonable access to services

1.2.1 Plan and provide community infrastructure and support services to best meet

community needs.

1.2.2 Encourage cooperation and maximise benefits to all sporting, public and

recreational facilities with region and assist in making these users more self-

sustainable.

1.2.3 Advocate for resource sharing facilities with State and Federal Government

and neighbouring Councils where appropriate.

1.3 A culture, identity and heritage which is valued and enhanced

1.3.1 Encourage well planned and aesthetically pleasing gateways, both public and

private, that enhance our individual communities.

1.3.2 Ensure all public infrastructure recognises independent community identities.

1.3.3 Encourage cultural development and support heritage preservation.

1.3.4 Support emerging and diverse communities by providing flexibility in planning

scheme provisions.


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1.4 An inclusive community which is motivated and involved in a range of social, cultural, recreation and learning activities.

1.4.1 Support cultural agencies and events organisers in coordinating, developing

and improving arts, cultural and recreational events that have the capacity to

enrich our communities.

1.4.2 Support initiatives that enhance education and learning opportunities for the

benefit of communities.

1.4.3 Encourage the participation of volunteers in all community activities.

1.5 An effective disaster management response

1.5.1 Continue to liaise with emergency service providers regarding resource

planning and provision.

1.5.2 Build resilience and capacity in our communities to manage natural or man-

made events and adversity.

1.5.3 Implement responsible Town Planning measure to encourage resilient and

adaptive community housing and infrastructure.

Major Initiatives and Key Operational Activities

• Complete City Centre Alive Lake Street project and commence work on the Shields Street Heart project

• Progress options for a performing arts centre • Delivery of School of Arts – Complete final building design, Museum fit-out design,

assessment of Tender and commencement of construction

• Finalise the new Cairns Regional Planning Scheme • Develop a Strategic Cemeteries Plan • Prepare a streetscape plan for Gordonvale town centre. • Review the Local Disaster Management Plan

• Conduct annual Local Disaster Coordination Centre exercises and training • Facilitate the delivery of disaster preparedness workshops for new residents • Complete community consultation process in accordance with the Referable Dam

Guidelines and Water Supply (Safety and Reliability) Act 2008 and submission of Annual Report for Referrable Dam Emergency Action Plan (EAP)

• Deliver Outcomes from Libraries Strategic Business Plan 2011-2016 • Implement WiFi at six (6) Library branches

• Refurbish of the Gordonvale Library • Construct a commemorative war service memorial at Gordonvale • Deliver Outcomes from Community Development Strategic Plan 2011-2016


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• Commission Cairns Regional Gallery Conservation Management Plan

• Delivery of major public artworks complete: City Centre Alive; Edmonton Leisure Centre • Plan and implement the Cairns Festival • Coordinate 2015 Cairns Children’s Festival • Establish the Punjabi Association at Kendrick Park

• Achieve target of 250 participating clubs in the Go Clubs Partnering Initiative • Implement Healthy Active School Travel (HAST) as a part of the Active Towns Cycling

program • Review Cycling and Walking Strategy implementation • Implement findings of School speed zone review • Complete Drinking Water Quality Management Plan • Deliver Quality Drinking Water in accordance with Australian Drinking Water Guidelines

• Prepare proactive Dengue Management Plan


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2.0 ECONOMY A strong, diversified and sustainable regional economy that supports the growth of new and existing industry and business activities whilst enhancing local lifestyle and providing long term employment opportunities.

Strategic Action

2.1 A diversified and innovative business sector

2.1.1 Develop policies and strategies which focus on enhancing the capacity and

diversity of business and industry to strengthen the region’s competitive

advantage whilst recognising tourism as a key driver of the economy.

2.1.2 Encourage and support the retention of existing industries and the

development of emergent industries and businesses.

2.1.3 Work with regional, state, national and international stakeholders to promote a

strong, resilient and sustainable economy.

2.1.4 Support the provision, uptake and application of the high speed broadband to

strengthen the existing business base and support new areas of economic

activity.

2.2 An economy which supports and facilitates employment opportunities

2.2.1 Promote and support the Tropical North Queensland Regional Economic Plan

by delivering on actions that are the responsibility of local government.

2.2.2 Promote and support initiatives designed to enhance increased local

employment and training opportunities.

2.2.3 Support the development of local industry solutions to workforce demands in

alignment with emerging industries.

2.2.4 Support the development of a work ready, flexible workforce to support the

sustainability of industries and businesses.

2.2.5 Encourage and support businesses to expand or establish in the region.

2.3 Infrastructure and utilities that facilitate and enhance sustainable growth

2.3.1 Develop and implement a priority infrastructure plan and charges schedule

that reflects community expectations of service levels whilst having regard to

the ability to pay.


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2.3.2 Develop partnerships with governments and other stakeholders to enhance

the region’s capacity for ongoing development maintenance of its

infrastructure.

2.3.3 Develop and maintain a quality and efficient infrastructure network, including

road, drainage and water networks.

2.3.4 Develop partnerships with infrastructure providers to ensure access to high

speed broadband.

2.4 An integrated approach to town and regional planning that strengthens local identity and lifestyle

2.4.1 Develop an integrated approach to local planning and infrastructure provision

to reflect current and future needs and aspirations of our communities.

2.4.2 Maintain an awareness of, and respond to, external developments which may

impact upon the region and its communities.

2.4.3 Contribute to and support a regional plan which strives to protect and

enhance the local identity and lifestyle of our communities.

2.5 An attractive place to live, work and visit through the encouragement of investment, development and employment.

2.5.1 Undertake urban planning and design to create an attractive place to live,

work and recreate.

2.5.2 Increase the region’s profile through the support for marketing initiatives,

events and other community based activities which encourage people to visit

and live in our region.

2.5.3 Promote the region’s competitive advantages (location, natural and physical

assets and industry specialisation) to support business and industry

development and investment.

2.5.4 Encouraging and attracting investment to the region to help broaden the

economic base and create new employment opportunities.


• Deliver major projects including City Centre Alive, Moody Creek Detention Basin, Lake Street Connection, Machan’s Beach Rock Wall, Tobruk Pool redevelopment and Shield Street Heart

• Complete Lucky on Lake Campaign to support city traders during re-development of Lake Street

• Develop Strategic Car Parking Strategy


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• Manage Resource and Performance agreement with Tourism Tropical North Queensland

• Coordinate the development and delivery of Sister Cities Youth Ambassador Program • Deliver the TNQ20 Business Excellence and Tropical Innovation Awards

• Undertake revaluation and condition assessment of all Transport Assets • Review and update the CBD and Environs Drainage Management Plan • Undertake design for Esplanade North erosion control works • Complete Cultural Resource Mapping

• Develop a Shared Facilities Usage Agreement in liaison with Education Queensland • Support apprenticeship scheme with the public sector and maintain a minimum of 5

Trainees directly employed across Council • Increase the number of Aboriginal and Torres Strait Islander employees within Council

compared to 3 year average • Provide support for G20 and deliver the Future of Tropical Economies Conference • Continued economic investment through grants and other programmes


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3.0 ENVIRONMENT A sustainable, well managed and healthy environment that provides a balance between built infrastructure and the conservation of our world heritage features and natural and cultural resources.

Strategic Action

3.1 A natural environment that is valued and sustainable

3.1.1 Develop and implement natural resource, pest and waste management plans

that protect and enhance the natural environment.

3.1.2 Encourage best practice management strategies to minimise damage to the

environment from build infrastructure and community activities.

3.1.3 Encourage community involvement in the development and implementation of

natural resource management plans and initiatives.

3.1.4 Partner with other levels of government to realise the maximum benefits to the

community and environment.

3.2 A quality and well planned built environment that meets basic community needs

3.2.1 Promote a built environment that is well planned, energy efficient, caters for

our community and is adaptable to meet the changing needs of future

generations.

3.2.2 Enable, support and manage our built environment so that it enhances the

identity and liveability of the individual communities and reflects the special

character of the region.

3.2.3 Promote well planned and integrated land use and encourage the sympathetic

integration of the built and natural environments to enhance the liveability,

aesthetics and amenity of each area within the regional council area.

3.3 The provision of quality infrastructure that meets the region’s current and future needs.

3.3.1 Ensure a coordinated and integrated approach to infrastructure planning,

implementation and maintenance and renewal.

3.3.2 Establish and maintain integrated asset management systems that enable

adequate recording, maintenance and replacement of community assets

through the delivery of the Corporate Information System (CIS).


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3.3.3 Use financial sustainability principles in planning, funding, creating and

maintaining infrastructure with consideration given to the impacts on future

generations and reported through the annual adoption of the long term

financial forecast.

3.3.4 Ensure land use planning recognises and values quality open space and

recreation areas for both current and future generations.

3.4 An environmentally educated and empowered community

3.4.1 Develop policies that educate and inform the community about the built and

natural environment.

3.4.2 Support and facilitate a range of community awareness activities and

programs that promote the conservation of the region’s natural and built

environment and which encourage sustainable living.

3.5 Ensure climate change impacts on our community, natural and built environment are minimised

3.5.1 Liaise with stakeholders and other levels of government to identify the local

impacts of climate change.

3.5.2 Consider, evaluate and communicate the impacts of climate change on our

communities.


• Commence preparation of the Local Government Infrastructure Plan (PIP) • Complete infrastructure charges audit and review of infrastructure charges agreements • Implement Asset management plans to direct infrastructure renewal programs • Participate in joint Cairns Regional Council/ Transport and Main Roads transport

planning initiatives such as the Northern Access Corridors Study and Smithfield Bypass project

• Review Disability Discrimination Act compliance for Council assets including bus stops and disabled car parking access

• Deliver energy audits to key Council facilities • Review and update the Waste Management Strategy 2010-2015

• Monitor to achieve a kerbside dry recycling rate of at least 60% by 2015 • Monitor to achieve an overall diversion from landfill rate of at least 70% by 2015 • Develop the Copperlode Dam Emergency Action Plan • Finalise Water Security Strategy

• Secure land for difficult to locate sports


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• Develop local parks service levels standards as part of a potential strategy

• Adopt Councils’ Pest Management Plan • Develop and adopt Whitfield Hill Trails Master Plan • Review Council’s Climate Change Strategy • Implement Year 3 of the Waste and Recycling Communication and Education Strategy

• Deliver the Green Thumb program • Deliver the Sustainable Living Expo • Deliver Council’s Community Sustainability Grants • Deliver Council’s State of Environment Report


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4.0 GOVERNANCE An efficient organisation providing best practice service delivery through leadership and policy making and the effective management of people, assets and finances.

Strategic Action

4.1 An innovative, transparent and accountable local government

4.1.1 Provide strategic direction to ensure Council policies are established in a

positive, innovative and transparent manner based on the mission and

principles articulated in the Corporate Plan.

4.1.2 Provide strong organisational leadership and governance that support open,

accountable and transparent decision making.

4.1.3 Develop strategic policies that assist in formulating innovative responses to

the critical issue of long term viability.

4.2 A committed and responsive customer service focus

4.2.1 Provide user-friendly, respectful and proactive customer service delivery.

4.2.2 Ensure the delivery of consistent and timely services to customers through

quality service standards and innovative use of technology.

4.2.3 Develop and implement strategies that are responsive to the community.

4.3 Responsible financial management and efficient operations

4.3.1 Establish, implement and manage long term financial planning strategies to

ensure future sustainability.

4.3.2 Balance financial risks against the requirements and aspirations of our

communities.

4.3.3 Ensure effective financial, asset and risk management practices to ensure the

efficient and accountable delivery of operations.

4.4 A valued work force committed to the region delivering quality services

4.4.1 Establish and implement human resources strategies to become an employer

of choice through promotion of a culture of unification, pride, satisfaction and

wellbeing amongst its workforce.

4.4.2 Encourage and recognise employees who strive for innovative, responsible

and committed performance in undertaking their duties.


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4.4.3 Value the importance of local knowledge, diversity and experiences of

employees in providing optimum service delivery.

4.5 Strong National, State and Regional advocacy

4.5.1 Encourage partnerships within the wider community to identify opportunities

for the enhancement of community wellness, infrastructure and pursuits.

4.5.2 Collaborate with corporate and key regional and community stakeholders to

ensure a unified and effective approach to national, state and regional

advocacy.

4.5.3 Advocate to all levels of Government and relevant industry leaders for the

provision and enhancement of appropriate services and infrastructure within

their jurisdictions.


• Develop and implement 3 year and 10 year Infrastructure Capital Project Plan

• Review Capital Approval Process • Implement the Pulse suite for management of the capital expenditure program • Monitor compliance with Department of Local Government ratios to maintain financial

sustainability. Current financial year and over the ten year model • Retain an unmodified audit opinion on annual financial statements status • Maintain a balanced budget • Achieve a maintained or improved QTC credit outcomes position • Implement Centralised Procurement to major business departments for capital and

operating expenditure • Prepare a rolling-four-quarter procurement forecast • Produce a Community Annual Report

• Implement Shared Service Hub • Monitor Departmental Phone Fox results and overall customer satisfaction through

Voice of Customer Surveys and implement changes

• Monitor CRMs to be actioned within designated date period • Improve Cairns Regional Council website and increase online services through “My

Council Website” and My Council Services project • Implement the Council Information System (CIS) program with the realisation of process

improvements and operational efficiencies • Achieve compliance with Water and Waste Customer Service Standards defined Key

Performance Indicators (see Annual Performance Plan) • Implement vehicle / plant renewal program to ensure efficient operations • Progress development of EBA for September 2015 adoption


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• Develop Internal Communication Strategy

• Implement E-recruitment • Develop Employment Strategy (incorporates First People, Cultural, Equal Employment

Opportunity and Workforce Diversity) • Conduct external bi-annual Workplace Health and Safety Audit • Conduct external bi-annual Employee Opinion Survey • Deliver Cairns Regional Council Annual Training Awards • Complete Leadership training for Managers and Coordinators

• Monitor the coordination of Performance Review and Development Plans • Monitor the average time to fill vacancies • Completion of OHS plan (5 yearly) • Monitor the completion of the Yearly Action Plan (Toolbox Talks, Hazard Inspections,

Internal Audits) • Monitor the employee total turnover • Monitor the reduction in sick leave/carers leave compared to 3 year average • Monitor the reduction in Lost Time Injury Frequency Rate and Lost Time Injury Duration

Rate compared to the 3 year average.

Cairns Regional Council – Water and Waste

Annual Performance Plan for 2014/15 Operational Plan

Document No: 4261048

Version: 5

Adopted:

Contact: Mark Wuth – Coordinator Regulatory and Systems Support

Water and Waste Annual Performance Plan

2014/2015

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Water and Waste’s Mission To deliver quality and reliable water, wastewater and waste services that meet the needs of our community. In all undertakings Water and Waste strives to achieve service provision to the Cairns community in a manner which maximises both Council and community ideals. This is achieved through economic, social and environmental objectives being assessed in all stages of Water and Waste operations from long term planning through to operational delivery.

Water and Waste – Commercial Business Unit This Annual Performance Plan encompasses requirements set in the Local Government Regulation 2012 for Commercial Business Units, as well as requirements for the Annual Report which is prepared in accordance with Division 3 of the Local Government Regulation 2012. Water and Waste includes two commercial business units of Council, those being:

• Water and Wastewater • Waste Services (Cairns Resource Recovery - CRR)

Delegations Water and Waste have a number of delegations covering a variety of legislation. The following table outlines where the delegation for appropriate legislation can be located and the Contracting Delegation Register for Water and Waste. Delegation Description Document Number Water Act 2000 3905815

Plumbing and Drainage Act 2002 3898568

Standard Plumbing and Drainage Regulation 2003 3900716

Local Government Regulation 2012 3897579

Water Supply (Safety and Reliability) Act 2008 3905929

Waste Reduction and Recycling Act 2011 3904432

Contracting Delegation Register for Water and Waste 4129533

Registers The following registers are maintained by Water and Waste;

• Drinking Water Quality Risk Register • Register of Delegations • Register of Benefits (including gifts) • Water and Waste Agenda and

Resolution Register

• Asset Register • Legal Register • Drinking Water Quality High Risk

Stakeholder

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Water and Wastewater

1. Unit Objectives Efficiently and effectively treat water to meet and exceed Australian Drinking Water Guidelines. Provision of quality and reliable water supply from major reservoirs to customer connections.

Provide reliable collection of wastewater from properties and ensure delivery in an environmentally sound manner to the Wastewater Treatment Plants. Efficiently and effectively treat wastewater recovering useable streams for recycled use and limiting discharge to waterways.

2. Nature and Extent of Business Activity To conduct works on water supply intakes, treatment plants, reticulation mains, reservoirs, pumps and residential connections; wastewater stations, collection mains and treatment plants in line with Water and Waste Standard Operating Procedures, industry best practice and Cairns Regional Council’s legislative requirements.

3. Non-Financial Targets: Water and Waste is required under the Water Supply (Safety and Reliability) Act 2008 to implement Customer Service Standards. The standards are reviewed and reported on annually and adopted by Council prior to submission to the Regulator. The 2014/15 Customer Service Standards are currently being reviewed and once adopted by Council shall be made available.

In addition to the Customer Service Standards, Water and Waste have non-financial targets as follows:

• Development of the Water Security Strategy • Continue Water Wise Education Campaign • Develop ongoing condition assessment programs.

4. Major Capital Works Major capital works to be undertaken will be included once the Capital Works Program is approved.

5. Principal Assets: Water and Waste operates eleven water supply schemes. The main water sources are the Copperlode Falls Dam and Behana Creek which supply the area from Gordonvale to Palm Cove. The small southern communities draw water from a number of intakes on local streams. Water and Waste manages six wastewater schemes. The distinct catchment areas within Cairns are serviced by six plants as follows: Marlin Coast, Northern, Southern, Edmonton, Gordonvale and Babinda.

The wastewater treatment plants are a combination of activated sludge and biological treatment processes, with the two larger plants also having membrane filtration processes. The smaller plants treat effluent to a secondary standard, while the larger plants treat to tertiary standards.

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The management of the systems is covered by a development approval issued by the Department of Environment and Heritage Protection.

Principal assets include: Water Supply

Major Water Sources Copperlode Falls Dam (Lake Morris) Behana Creek

Major Water Treatment Plants Freshwater Creek at Tunnel Hill

Kilometres of Water Mains 2081.18km

Water Pump Stations 45

Water Reservoirs 64

Rural Intakes 10

Wastewater

Major Wastewater Treatment Plants 6

Sewerage Pump Stations 188

Kilometres of Sewer Mains 1320km

6. Key Deliverables / Additional Services Water and Waste is responsible for the provision of water services to consumers throughout the Cairns Region, including the following:

• Reticulated treated water services • Planning, design, documentation and construction of water services infrastructure • Demand management services, including meter testing • Water Laboratory • Water reticulation maintenance services • Recreational facilities at Copperlode Dam • Hydraulic information • As constructed information • Development assessment • Reticulated wastewater services including wastewater treatment and by-product disposal • Treated effluent and biosolids for re-use purposes • Planning, design, documentation and construction of wastewater services infrastructure • Trade waste services • Review of plumbing applications • Hydraulic information • As-constructed information • Maintenance of systems

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7. Service Indicators Full details will be provided following adoption of Customer Service Standards which are currently under review. Performance Indicator Performance Measure Target

Wat

er S

uppl

y

1 Total water main breaks (QG4.5 / A8/AS8)

2 Incidence of unplanned interruptions – Water (QG4.7 / C17/CS17)

3 Average response time for water incidents (bursts and leaks) (QG4.8 / -/CS37)

4 Water quality complaints (QG4.10 / C9/CS9)

Sew

erag

e Sy

stem

5 Total sewerage main breaks and chokes (QG4.6 / A14/AS39)

6 Average response time for sewerage incidents (including main breaks and chokes) (QG4.9 / -/CS33)

C

usto

mer

C

ompl

aint

s

1 Total water and sewerage complaints (QG4.11 / C13/CS13)

*Codes relate to Queensland State Government water KPI’s and National Performance Review (NPR) benchmarkings.

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Cairns Resource Recovery

1. Unit Objectives In December 2009 Cairns Regional Council adopted the Waste Management Strategy 2010 – 2015 (the Waste Strategy). The Waste Strategy sets out the principles, objectives, targets, programme areas, and action plans for managing municipal waste up until 2015. It also sets the scene for the management of commercial and industrial waste (CandI) and construction and demolition waste (CandD).

The high level objectives of the Waste Strategy are to:

• Reduce the generation of waste; • Improve awareness of waste as a resource and influence behavioural change; • Improve resource recovery; • Improve recycling and composting; • Improve residual waste treatment and recovery; and • Minimise waste sent to landfill.

Several internal and external drivers will shape the business and operating strategies adopted by CRR over the 2014/2015 financial year.

1.1. Queensland Waste Strategy and Waste Reduction and Recycling Act 2011 Queensland is currently undergoing crucial legislative and strategic reform for waste with the release of the Queensland Waste Reduction and Recycling Strategy 2010-2020 (the Qld Waste Strategy) and associated introduction of the Waste Reduction and Recycling Act 2011 (WRR Act 2011) to implement the Qld Waste Strategy.

1.1.1. The Waste Hierarchy The waste management hierarchy is the key principle for guiding waste and resource management practices.

The hierarchy is a decision-support tool that employs strategies which aim to:

1. Avoid products becoming waste (avoid, reduce and reuse); 2. Find an alternative use for waste (recycle and recover); and 3. Ensure safe and appropriate disposal as a last resort (dispose).

1.1.2. Sustainable Development[ZE1]

Sustainable development involves identifying the balance between economic, social and environmental considerations and is defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.

1.2. Waste Management Strategy (Waste Reduction and Recycling Plan)

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CRR is required to update the existing Waste Strategy in 2014/2015 and establish a 3 year Waste Strategy under the WRR Act 2011. There is also an opportunity to establish the plan on a regional basis, in conjunction with other local governments.

1.3. Increased DEHP Focus on Compliance Legislative changes have been implemented State-wide to reduce departmental red tape and allow DEHP to focus its efforts on compliance. As a result, there will be an increased focus for the foreseeable future on compliance, to ensure that possible harm to the environment from waste management practices are mitigated.

1.4. Regional Growth The Cairns region is predicted to experience significant growth over the next 10 years, as projected by the Queensland Department of Infrastructure and Planning. This growth will have a direct impact on demand for waste services, resulting in a need to increase infrastructure and manage demand.

1.5. Carbon Pricing Mechanism In November 2011, the Federal Government passed the Clean Energy Legislative Package, including the Clean Energy Act 2011 which sets up the structure for a carbon pricing mechanism (CPM) to put a price on carbon pollution. Although CRR will not be a liable entity under the legislation the business is expected to incur a carbon tax liability for waste landfilled in the 2014/2015 financial year from the Advanced Resource Recovery Facility (ARRF) residual waste. Under the current Legislation, from 1 July 2014 the price of an EEU for 2014/2015 will be fixed at $25.40 per tonne. Any changes to the CPM could have a significant impact on the carbon liability passed through to CRR via the ARRF.

1.6. Initiatives to Reduce Greenhouse Gas Emissions from Landfills CRR is investigating initiatives to reduce greenhouse gas emissions from its landfills in line with Council’s Carbon Emissions Reduction Policy. CRR is flaring landfill gas from Portsmith Landfill and is registered as an offsets entity. Further, our gas flare is registered as a project under the Carbon Farming Initiative and will receive Australian Carbon Credit Units for same.

1.7. Environmental Management System (EMS) In order to demonstrate sound environmental performance, CRR will continue to operate in accordance with the environmental management system and embrace the principles of International Standard ISO14001 – Environmental management systems.

1.8. Governance CRR requires business specific full cost pricing, capital and dividend policies and will finalise its quality management systems manual (ISO9001 compliant) in 2014/15.

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1.9 Customers

It is likely that customer expectations will continue to be high. CRR will continue to monitor feedback from residents and business to ensure that the services it provides meet the needs of its customers.

There is a need for ongoing community education to communicate what is involved in the supply of waste and recycling services and their relationship and impact on the safety, quality and quantity of recovered product to market, in particular the ARRF compost and MRF recyclables.

1.10 Workforce Management and Skilling Growth in the Cairns community continues to place demands on almost all resources. CRR will continue to monitor and advocate for sufficient resources to deliver collection, recovery and disposal services in accordance with defined service levels.

2. Nature and Extent of Business Activity Cairns Resource Recovery is part of Council’s Waste and Environment Branch within the Water and Waste Division and is responsible for the collection and recovery of solid waste and recyclables. CRR is a Type 1 Significant Business under the provisions of the Local Government Regulation 2012. The CRR mission statement is:

“To provide cost effective, efficient and sustainable Waste and Environmental Management Services”

The CRR business comprises of the following key business areas: Waste and Recycling Collection (under contract)

• 75,000 weekly waste collections with 50,000 tonnes of waste collected per year • 65,000 fortnightly recycling collections with 12,500 tonnes of recycling collected per year

Transfer Stations • Four (4) transfer stations with 35,000 tonnes of waste received per year

Materials Recovery Facility (MRF) • One (1) MRF with 12,500 tonnes of recycling processed per year

Regional Waste Management (under contract) • One (1) Advanced Resource Recovery Facility (ARRF) with 70,000 tonnes of waste

processed per year Overall 115,000 tonnes per year is received with 65,000 tonnes diverted from landfill (60% diversion rate) and 50,000 tonnes landfilled.

3. Non-Financial Targets: Water and Waste is required under the Water Supply (Safety and Reliability) Act 2008 to implement Customer Service Standards. The standards are reviewed and reported on annually

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and adopted by Council prior to submission to the Regulator. The 2014/15 Customer Service Standards are currently being reviewed and once adopted by Council shall be made available.

In addition to the Customer Service Standards, Water and Waste have non-financial targets relating to Resource Recovery outlined in the Waste Strategy. The high level targets of the Strategy are summarised as follows:

• Restrict growth in waste generation to 2% per annum by 2015; • Achieve a kerbside dry recycling rate of at least 60% by 2015; • Achieve an overall diversion from landfill rate of at least 70% by 2015; • Flexibility for residual waste treatment options and recovery; • Efficient recycling services with increased local markets and demand for recovered

resources; and • Show leadership and coordination in regards to waste management in the region and

provide best value services.

A full copy of the Waste Strategy is available at #2616232.

4. Major Capital Works: Major capital works to be undertaken will be included once the Capital Works Program is approved.

5. Principal Assets: Water and Waste manages a range of solid waste operations, activities and services across the region including kerbside waste and recycling collection contracts, a regional waste management contract (through an Advanced Resource Recovery Facility), a material recovery facility, transfer stations, drop bin sites and landfills. Principal assets include:

Materials Recovery Facility Portsmith

Waste Transfer Stations

Babinda Gordonvale Portsmith Smithfield

Buy Back Shop Portsmith

Landfills (closed)

Portsmith Whiterock Babinda Gordonvale Yorkeys Knob

Waste Treatment and Disposal Contractual arrangement with a commercial entity Sita Environmental Solutions to accept, treat and dispose of all Council waste at an Advanced Resource Recovery Facility

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6. Key Deliverables / Additional Services CRR is responsible primarily for the management of municipal solid waste services (collection, recovery and disposal) to the community, including the following:

• Provision of kerbside waste and recycling collections • Provision of the Transfer Station network • Operation of the Materials Recovery Facility • Contract management including regional ARRF facility • Management and monitoring of closed landfill sites • Management of waste and recycling education campaign

7. Service Indicators Full details will be provided following adoption of Customer Service Standards which are currently under review. Performance Indicator Performance

Measure Target

Effe

ctiv

e C

olle

ctio

n of

R

esid

entia

l Was

te 1 New Bin Delivery

2 Missed services - kerbside waste and recycling

3 Response time to missed services - kerbside waste and recycling

4

Response time to repair/replacement requests - kerbside waste and recycling

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Water and Waste and the Community

Community Service Obligations • Cleanup Australia Day • Free green waste disposal • Copperlode Falls Dam recreation facilities • Provision of Water and Waste marquee for specific events • Developing relationships with Traditional Owners in Water and Waste infrastructure

areas • Dialysis Policy currently being developed • Maintenance of fire hydrants

Cost of, and funding for the Community service obligations Details will be provided once Budget is approved.

Activities Community Service Obligation Description 2014/15

Type 1 Activities Water Service locations - Telstra, etc 84,306 Maintenance of fire hydrants 540,276 Access Charges foregone 429,381 Water charges foregone 1,592,057 Total 2,646,019 Wastewater Service locations - Telstra, etc 90,685 Access Charges foregone 1,021,046 Total 1,111,731 Solid Waste Management Free disposal general waste 560,584 Free disposal vouchers 11,500 Free disposal green waste 307,869 Free Mulch 43,601 Free transportation costs between transfer stations 68,653 Rates based financial assistance 43,812 Schools Recycling 29,921 In Kind Waste and Recycling Collections 4,712 Total 1,070,650

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Policy on the level and quality of service consumers can expect Water and Waste are required to implement Customer Service Standards which documents the level of services to be provided to customers, processes for customer interaction with the provider about such issues as billing, metering and accounts. The implementation of Customer Service Standards ensures continuity of the services supplied to customers. Water and Waste’s Customer Service Standards are currently under review and will be available in July 2014. The current standards can be viewed at #1233797.

Financials

Notional Capital Structure, and treatment of Surpluses Water and Waste includes two wholly owned commercial business units of Council, those being:

• Water and Wastewater • Waste Services (Cairns Resource Recovery)

.

Any surplus earned by a business unit of Council is returned as a dividend to Council. This return is in recognition that business units have been established to further the good governance of the region. Funds earned by Council through dividends are utilised to provide enhanced services and infrastructure to the Cairns region.

Capital Works – expenditure by program

2014/15 FUNDING

PROGRAM PROJECT TOTAL $’000

REVENUE $’000

GRANT FUNDING, DEV CONT, ETC.

$’000

WASTE 921 921 - WASTEWATER 17,383 14,890 2,493 WATER 18,054 15,775 2,279 TOTAL 36,358 31,586 4,772

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2014/2015

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Proposed Major investments

A) Water and Wastewater

Project Completion Date

2014/15 Budget

$’000

SWWTP Dewatering Sys Upgrade 30 Jun 2015 1,500

Managing Contract - Pump Stations 30 Jun 2015 3,930

Kamerunga Pressure Main Upgrade (SPS RL1 to Freshwater Ck) 31 Mar 2015 1,000

SPS RL1/BM1 to FW1 Upgrade Rising Main (Kamerunga Road Pressure Main)

30 Jun 2015 2100

Sewer Main and Manhole Refurbishment 14/15 30 Jun 2015 3,000

Northern Beaches design trunk water mains DN450 - P/Palms to Palm Cove Reservoir (PCW09503, PCW10501 and PCW09807)

31 Dec 2014 1,565

Clifton Beach - Design of 225mm Trunk Main (Evergreen St to Warren Rd) PCW09503, PCW10501 and PCW09807)

31 Dec 2014 1,403

Behana Creek to Edmonton West Pump Station - Upgrade Trunk Main Connection

30 Jun 2015 2,700

Redlynch Reservoir - Planning and Design Dedicated Inlet Main DN225 x 4,280m

30 Sept 2014 1,232

Water - Reticulation Mains 30 Jun 2015 1,920

Water Meter Replacement 30 Jun 2015 1,500

B) Resource Recovery

Project Completion Date

2014/15 Budget

$’000

MRF Surface Water Management 30 Jun 2015 200

MRF Upgrade 30 Jun 2015 325

Smithfield Transfer Station renewal of greenwaste pad / veg pad renewal

31 Mar 2015 100

Smithfield Transfer Station - renewal of metal pad /steel pad (receival area)

30 Jun 2015 100

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2014/2015

#4261048

Outstanding and Proposed Borrowings

For the 14/15 budget financial year it is proposed that the capital works program will be funded through a combination of developer contributions and the future asset sustainability with no plans to increase the current loan balances.

Financial Targets

A) Water and Wastewater

B) Resource Recovery

Performance Measure – Budget to Actual

Target Frequency 2014/15 Budget $’000

Operating Revenue Revenue for department no more than 1% under budget.

Quarterly 113,047

Operating Expenses Expenditure for the department in the range of 0% - 5% under budget.

Quarterly 81,843

Net Operating Result Net result within 3% of budget Quarterly 31,205

Capex 90% of budget spent by year end Quarterly

Performance Measure – Budget to Actual

Target Timing 2014/15 Budget $’000

Operating Revenue Revenue for department no more than 1% under budget.

Quarterly 29,218

Operating Expenses Expenditure for the department in the range of 0% - 5% under budget.

Quarterly 23,960

Net Operating Result Net result within 3% of budget Quarterly 5,258

Capex 90% of budget spent by year end Quarterly

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Document No: 4383941 Version: 1

Annual Performance Plan for 2014/15 – Cairns Works Business Unit

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Contents 1. Introduction .................................................................................................................................... 2

2. Unit’s Objectives ............................................................................................................................. 3

3. Nature and Extent of Business Activity ........................................................................................... 3

4. Unit’s Financial and non-financial performance targets ................................................................. 3

5. Nature and Extent of Community Service Obligations ................................................................... 4

6. Cost of and Funding for Community Service Obligations ............................................................... 4

7. Notional Capital Structure and Treatment of Surpluses ................................................................. 5

8. Unit’s Proposed Major Investments ............................................................................................... 5

9. Unit’s Outstanding, and Proposed Borrowings ............................................................................... 5

10. Unit’s Policy on the level and quality of Service Consumers can expect .................................... 5

11. Delegations ................................................................................................................................. 7

12. Type of Information the Unit Reports to the Local Government ............................................... 7

Cairns Works Annual Performance Plan 2014/2015

1. Introduction Cairns Works (CW) was created as a commercialised business unit of Cairns Regional Council (CRC). Section 175 of the Local Government Regulation 2012 states that the Annual Operational Plan must include an Annual Performance Plan for each commercialized business unit. The Annual Performance Plan must state the following: (a) the unit's objectives; (b) the nature and extent of the significant business activity the unit is to conduct; (c) the unit's financial and non-financial performance targets; (d) the nature and extent of the community service obligations the unit must perform; (e) the cost of, and funding for, the community service obligations; (f) the unit's notional capital structure, and treatment of surpluses; (g) the unit's proposed major investments; (h) the unit's outstanding, and proposed, borrowings; (i) the unit's policy on the level and quality of service consumers can expect; (j) the delegations necessary to allow the unit to exercise autonomy in its commercial activities; (k) the type of information that the unit's reports to the local government must contain.

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2. Unit’s Objectives Cairns Works is committed to being a viable, efficient and effective client focussed business unit. The high level objectives of the Cairns Works business unit are to: • Undertake planned and reactive maintenance on Council’s roads, drains, parks, foreshore and

other infrastructure facilities.

• Delivery of Capital works construction projects including transport and drainage infrastructure, and other civil works.

• Construction work for external clients including the QLD Department of Transport and Main Roads.

3. Nature and Extent of Business Activity The activities of Cairns Works cover the following programs: • Transport

• Drainage

• Parks and Foreshores

• Emergency response to declared natural disaster events.

The service scope provides for the construction, maintenance and operation of the asset classes within those sub-programs. Cairns Works is also a significant service provider in the refurbishment and renewal of assets under the Capital Works Program. A further and very significant advantage of Cairns Works as an internal business provider is its ability to react and support major events or directions that Council determines. In previous years this has manifest itself into the immediate and organised response and recovery to many major disaster events – specifically tropical cyclones and major flooding due to heavy rain events and high tides, which are prevalent in this region. A substantial effort in a rapid recovery from such events is very much due to the existence of this business unit. Cairns Works is also engaged in the provision of civil projects to the private sector marketplace. This further enhances the opportunity to consolidate as a service provider business and provides additional revenue to Council.

4. Unit’s Financial and non-financial performance targets Financial Performance Targets: The following are Cairns Works’ key financial performance targets: • Minimum 5% profit margin from the Council Maintenance Contract.

• Actual expenditure on the Council Maintenance Contract to be within 2% variance from budget for the following activities:

o Transport Infrastructure:

o Kerb and Channel;

o Traffic Facilities;

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o Bridge, Footpath and Transport Facilities Maintenance;

o Underground, Lined and Unlined Drainage;

o Parks maintenance:

o Foreshore Infrastructure Maintenance;

o Street Sweeping.

Section 175 (3) of the Local Government Regulation 2012 states that:

(3) A local government may omit information from the copies of the annual performance plan made available to the public if—

(a) the information is of a commercially sensitive nature to the commercial business unit (b) the information is given to each of the local government's councillors. Hence other financial indicators have not been presented in this Annual Performance Plan but will be provided to Council separately.

Non-Financial Performance Targets: The following are Cairns Works’ key non-financial performance targets: • Horticultural maintenance cycles to be no greater than 8 weeks.

• Street sweeping cycles to be no greater than 15 weeks.

• Customer Response Management (CRM) requests to be processed and finalised in a timely fashion with 90% completed by the target date and 100% completed within 90 days of the target date.

• Minimum 80% completion rate for Workplace Health and Safety - Monthly Action Plans

• Minimum 80% completion rate for Workplace Health and Safety – Rectification Action Plans for low to medium risk items and minimum 100% completion rate for high risk items.

• 95% compliance with Departmental Phone Fox audits

• 75% customer satisfaction through Voice of Customer Surveys.

5. Nature and Extent of Community Service Obligations Section 24 of the Local Government Regulation 2012 defines a community service obligation as “an obligation the local government imposes on a business entity to do something that is not in the commercial interests of the business entity to do”. The Cairns Works business unit is fully reimbursed for all its activities via service contracts with internal and external clients. As such, Cairns Works has no community service obligations as defined by the Regulation.

6. Cost of and Funding for Community Service Obligations There are no community service obligation costs and therefore funding is not required.

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7. Notional Capital Structure and Treatment of Surpluses

Cairns Works is 100% equity funded and all surpluses are returned to Cairns Regional Council via dividend.

8. Unit’s Proposed Major Investments

Cairns Works has no major investments proposed.

9. Unit’s Outstanding, and Proposed Borrowings

Cairns Works has no outstanding or proposed borrowings.

10. Unit’s Policy on the level and quality of Service Consumers can expect

Cairns Works strives to provide a committed and responsive customer service focus through user-friendly, respectful and proactive customer service delivery. The level and quality of service is guided by the timeframes nominated for the various work categories in Council’s Customer Response Management (CRM) system. The timeframes are subject to change but as at June 2014, they were as detailed in the following table:

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CRM Category Description Response Time Days

Road Bridges - Repairs, Maintenance & Cleaning 90 Bus Shelters - Repairs & Maintenance 15 Drainage Easements - Unblocking / Cleaning 20 Drainage Easements - Repairs & Maintenance 90 Drainage Easements - Mowing / Weed Control / Herbicide 40 Flooding Premises 5 Open Drains - Unblocking / Cleaning 20 Open Drains - Repairs & Maintenance 90 Underground Drains - Unblocking / Cleaning 20 Underground Drains - Repairs & Maintenance 90 Footpaths - Repairs / Maintenance & Hazards 20 Footpaths - Cleaning 20 Grass Footpaths - Repairs / Maintenance & Hazards 20 Graffiti Trailer / Non Council Property 5 Kerb & Channel - Repairs / Maintenance & Unblocking 30 Litter Bin - New / Repairs & Maintenance 15 Removal of Dead Animals 2 General Litter 5 Maintenance Central (IP Referral Only) 30 Parks - BBQ - Repairs & Maintenance 10 Parks - Infrastructure / Playground Equipment - Repairs & Maintenance 10 Parks - Taps / Sprinklers / Irrigation - Repairs & Maintenance 5 Parks - Mowing / Weeding & Maintenance 40 Parks - Fallen Branches / Vegetation / Debris Removal 15 Parks - Trees 60 Jetties & Boat Ramps - Repairs & Maintenance 15 Flooding Road - Inspect 5 Roads - Line Marking 15 Roads - Dips / Sunken / Shape Correction 40 Pothole Patching 5 Sealed Roads - Spills 1 Sealed Roads - Sweeping 30 Unsealed Roads - Grading 40 Road Shoulders - Repairs & Maintenance 40 Guide Posts / Guard Rails - Repairs & Maintenance 10 Signs - Repair / Replace 15 Street Landscaping - Repairs & Maintenance 60 Street Trees - Maintenance 60 Public Toilets - Cleaning 5 Graffiti 5

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11. Delegations

Cairns Works have a number of delegations covering a variety of legislation. The following table outlines where the delegation for appropriate legislation can be located:

Delegation Description Document Number

Local Government Act 2009 3897273 Local Government Regulation 2012 3897579 Transport Operations (Road Use Management) Act 1995 3904071 Transport Infrastructure (Busway) Regulation 2002 3902298 Transport Infrastructure (Rail) Regulation 2006 3902484 Transport Operations (Marine Pollution) Act 1995 3904025 Transport Operations (Road Use Management) Act 1995 3904071 Transport Operations (Marine Safety) Regulation 2004 3904059 Transport Operations (Marine Safety) Act 1994 3904051 Environmental Protection Act 1994 3894995 Environmental Protection Regulation 3895115

12. Type of Information the Unit Reports to the Local Government The following information is reported to Council via Quarterly and Annual operational plan reports:

• Profitability on the Council Maintenance Contract.

• Profitability on the Road Maintenance Performance Contract (RMPC) for Department of Transport & Main Roads.

• Profitability on Construction Contracts for external clients.

• Variance of actual expenditure from budgeted expenditure on key activities under the Council Maintenance Contract.

• Statistics on completion rates and times for Customer Response Management (CRM) requests.

Statistics on the actual cycle times for programmed operational maintenance activities are reported via a monthly memorandum to Councillors. The progress of major construction projects is reported to Council via monthly reports.

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