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Cover: Encouraging our community to recycle at the Botanic Gardens, Ashmore.

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Contents 1. Purpose ....................................................................................................................................... 4

1.1 Introduction ........................................................................................................................ 4 1.2 Our commitment ................................................................................................................ 4 1.3 Business objectives ........................................................................................................... 4

2. Significant business activity ...................................................................................................... 4 2.1 Nature of activities ............................................................................................................. 4 2.2 Scope of activities .............................................................................................................. 4

2.2.1 Service areas ........................................................................................................... 4 2.2.2 Waste collections services ........................................................................................ 5 2.2.3 Accepted wastes ...................................................................................................... 5 2.2.4 Waste facility operations ........................................................................................... 5

3. Financial and non-financial performance targets ..................................................................... 5

4. Community service obligations ................................................................................................. 5

5. Draft Capital Structure and Community Returns Policy .......................................................... 6

6. Proposed major investments ..................................................................................................... 6

7. Outstanding and proposed borrowings .................................................................................... 7

8. Customer service standards ...................................................................................................... 7

9. Delegated authorities .................................................................................................................. 7

10. Reporting framework .................................................................................................................. 8

Attachment 1: Controlled waste collection areas ............................................................................ 9

Attachment 2: Current waste and recycling centre network ........................................................ 14

Attachment 3: Key performance indicators ................................................................................... 15

Attachment 4: Delegated authorities .............................................................................................. 16

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1. Purpose

1.1 Introduction Gold Coast Waste Management Services provides customers with solid waste collection and management services in the Gold Coast region and operates as a Commercial Business Unit (CBU) with in the Gold Coast Water and Waste directorate in accordance with the Local Government Regulations 2012 and Council Resolution No. G97.1110.010.

The CBU was established in accordance with Council resolution G97.1110.010 and conducts business by adhering to the key principles of commercialisation, namely having:

• clarity of objectives • management autonomy and authority (governance) • accountability for performance • competitive neutrality.

1.2 Our commitment • our aim is to manage our resources for a sustainable future • our job is to provide safe and reliable water, sewerage and waste services to the people of the Gold Coast to

protect our community’s health and wellbeing and to care for our waterways and catchment areas that supports our City’s lifestyle and prosperity.

1.3 Business objectives • we ensure zero harm – we ensure the health and safety of ourselves, our environment and our community • we strive for satisfied customers – we provide value for money, innovative, customer focused services • we manage finances responsibly – we balance life-cycle costs and service prices, to sustain our City • we provide reliable services – we plan, build, operate, maintain and renew assets prudently and efficiently.

2. Significant business activity

2.1 Nature of activities In accordance with the Waste Reduction and Recycling Act 2011, the primary functions of Gold Coast Waste Management Services are to:

• promote waste avoidance and reduction, and resource recovery and efficiency actions • reduce the consumption of natural resources and minimise the disposal of waste by encouraging waste

avoidance and the recovery, re-use and recycling of waste • minimise the overall impact of waste generation and disposal • ensure a shared responsibility between government, business and industry and the community in waste

management resource recovery • support and implement national frameworks, objectives and priorities for waste management and resource

recovery.

2.2 Scope of activities

2.2.1 Service areas

The City of Gold Coast’s designated Waste Collection Service Area covers all residential properties within the City’s boundary plus non-residential properties within the following waste precincts:

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• Main Beach / Surfers Paradise / Broadbeach • Burleigh Heads Central • Coolangatta Central • Coomera.

The boundary maps for the non-residential waste precincts have been included in Appendix 1. Through these precincts, Council has the ability to levy mandatory waste collection charges on all premises within these areas.

2.2.2 Waste collections services

The City provides residential collection services on a weekly basis for general waste and fortnightly for recycled waste.

Additional services include:

• green waste bin collections • commercial waste management services • annual city-wide kerbside clean-ups for residents.

2.2.3 Accepted wastes

Managed services include: solid wastes, unwanted or discarded solid material generated by domestic, commercial and industrial premises, or construction and demolition activities. These services exclude liquid waste, sewage, sludge, or products from hazardous or toxic waste treatment. Some limited regulated wastes are currently accepted at designated centres under controls imposed by the relevant environmental authorities. These include asbestos, tyres and treated clinical waste.

2.2.4 Waste facility operations

Waste facilities manage solid waste and recyclables delivered to the City’s 12 Waste and Recycling Centres and two active landfills at Reedy Creek and Stapylton. A map of the current waste facility network is included in Appendix 2.

3. Financial and non-financial performance targets Financial performance targets are included within City of Gold Coast’s Annual Plan. Appendix 3 outlines the key performance indicators and targets which Gold Coast Waste Management Services will monitor during the 2017-18 financial year.

Each key performance indicator (KPI) is reviewed quarterly as part of the quarterly business review process. KPI’s are also reviewed on a monthly basis and all indicators are reported annually in the City of Gold Coast’s Annual Report.

4. Community service obligations Section 24 of the Local Government Regulation 2012 defines a Community Service Obligation (CSO) 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.’

A CSO is treated as revenue for the activity of an amount equivalent to the cost of carrying out the obligation less any revenue arising from carrying out the activity.

Gold Coast Waste Management Services has seven endorsed CSOs for the 2017-18 financial year as outlined below:

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Activity CSO Description Amount

Kerbside Collection Biennial kerbside collection program for eligible dwellings within the waste collection areas.

$1,066,000

Refuse Charge Donations Free of charge refuse costs provided to the public $545,375

Street and Park Bin Services Disposal of solid waste from waste bins at nominated City parks, streets, boat ramps and public places.

$494,000

Free Tipping Donations Free of charge refuse costs provided to a range of approved charities and organisations

$473,250

South Stradbroke Island Waste Disposal (Net)

Waste management services provided to South Stradbroke Island.

$436,340

Carcass Collection Collection and disposal of dead animals from roads, reserves and foreshores.

$60,000

Clean-up Australia Day Provision of solid waste collection and disposal services and administrative support for Clean-up Australia Day.

$19,215

5. Draft Capital Structure and Community Returns Policy As a commercialised business unit, Gold Coast Waste Management Services is guided by the Draft Gold Coast Waste Management Services Capital Structure and Community Returns Policy. The objectives of this policy are to:

• enable ‘ring fenced’ accountability for financial management of the business in line with regulatory requirements

• set the financial parameters, including the capital structure and cost of capital within which Gold Coast Waste Management Services operates as a commercial business

• provide an appropriate rate of return to the community for investments (equivalent to an appropriate Weighted Average Cost of Capital)

• assist in providing long term financial sustainability to Gold Coast Waste Management Services by specifying the framework for returns to the community.

All retained surpluses and special dividend payments will also be in accordance with this policy. To satisfy requirements under the National Competition Policy, Gold Coast Waste Management Services provides additional payments to Council in the form of tax equivalents and interest margins to neutralise any competitive concerns with community and stakeholders.

6. Proposed major investments Gold Coast Waste Management Services has procurement authority that operates under the Strategic Contracting Procedures of the Local Government Regulation 2012 [chapter 6 part 2]. For further details on the principles regarding procurement activities, see the Procurement Policy and Contract Manual.

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The following table summarises key major investments proposed for 2017-18. A full list of Waste Management Service’s 2017-18 strategic contracting activities can be found in City Contracting Plan 2017-18.

Project description 2017-18 Base estimate expenses

Construct a facility to assist with treatment of leachate from the City’s landfill sites within the sewerage treatment network.

$700,000

Develop a detailed design and construct an engineered landfill liner system at Reedy Creek landfill.

$500,000

Implement a commercial food collection service to reduce organic waste disposed at City landfills.

$210,000

Develop a detailed concept design incorporating operational and post operational needs for the Stapylton landfill.

$125,000

Perform a market analysis for potential re-use of city generated bio-resource products. The market analysis will inform future planning and investment activities.

$75,000

7. Outstanding and proposed borrowings The projected debt structure for 2017-18 is provided below:

Loan type Opening balance 1 July 2017

Principal repayment

New borrowings

Closing balance 30 June 2018

Loans (external) $86,562,655 ($8,745,247) $3,700,000 $81,517,408

Proposed new external borrowings for 2017-18 are forecast at $3,700,000.

The loan program planned for the 2017-18 financial year is to be adopted as part of Council’s formal budget process. The City will manage the borrowing arrangements through Queensland Treasury Corporation (QTC) as well as budgets for the interest and redemption at an individual account level for Gold Coast Waste Management Services.

8. Customer service standards Gold Coast Waste Management Services strive for customer satisfaction through the provision of quality services. Customers can access information on all waste service offerings online, via the Customer Contact Centre on 1300 GOLDCOAST (1300 465 326) or in person at one of our Customer Service Centres.

9. Delegated authorities Gold Coast Waste Management Services delegated authorities are in accordance with the Local Government Act 2009 (section 257). Delegated authorities for specific staff are set out in Council’s Register of Delegations, held by the Office of the Chief Executive Officer (CEO). The delegations are given to the Director Gold Coast Water and Waste from the CEO to exercise autonomy in Gold Coast Water and Waste’s commercial activities and are noted in Appendix 4 (Delegated authorities).

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10. Reporting framework Gold Coast Waste Management Services performance reporting is via a number of mechanisms.

Figure 1: Gold Coast Waste Management Services reporting framework

external

internal

Framework Performance reports

external

• Environmental Protection Act 1994 and regulations (QLD)

• Local Government Act 2009 and regulations 2012 (QLD)

• National Environment Protection (National Pollutant Inventory) measure 1998 (Cth)

• Petroleum and Gas (Production and Safety) Act 2004 and regulations (QLD)

• Waste Reduction and Recycling Act 2011 and regulations (QLD)

• ERA (Environment Relevant Activities) Environment Report and Licence Returns (annually)

• National Performance Indicator Greenhouse Gas Emissions Report (annually)

• Petroleum and Gas Safety Report (annually) • Queensland Waste Data System (QWDS) Report • Waste and Recycling Activities Report (annually)

to EHP (Department of Environmental and Heritage Protection)

• Waste Disposal and Resource Recovery statistics (quarterly)

internal

• Annual Plan (including City Budget and City Operational Plan) City Plan

• Corporate Policies • Corporate Strategies • Customer Management Framework • Customer Service Charter and Standards • Gold Coast 2022 (Corporate Plan) • Long Term Financial Forecast • Management Plans

• Total Asset Management Plans

• Annual Report • Compliance Report (report currently being developed) • Corporate Scorecard (service ratings against monthly

key performance indicators (KPIs) and financial targets

• Financial Performance Reports (monthly / end of year)

• Gold Coast Water and Waste Committee Reports. (See Committee papers)

• Operational Plan Progress Report (progress of initiatives implemented under the Annual Plan. Includes portfolio delivery plans)

• Organisational Improvement Committee Report (providing activities for management review, achievement performances with customers, compliance, reporting and risk, quality, environment and training)

• State of the Organisation Report

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Attachment 1: Controlled waste collection areas

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N

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Attachment 2: Current waste and recycling centre network

Key community waste and recycling centres landfills

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Attachment 3: Key performance indicators All key performance indicators are reviewed at least quarterly as part of the quarterly business performance reports.

Key performance indicators KPI No. Annual target reference (if any) Industry average

We ensure zero harm

Number of Lost Time Injuries KPI001 <8 N/A

Landfill gas capture efficiency (%) KPI002 >20% N/A

Number of reportable environmental incidents to the regulator KPI003 <5 N/A

Compliance with environmental licences (greater than 99.5% of the time) KPI004 100% N/A

We strive for satisfied customers

Valid litter, odour, dust and noise complaints (number per 1000 households) KPI005 <0.5 N/A

Percentage of customer satisfaction KPI006 >90% N/A

We manage finances responsibly

Percentage of initial capital works program delivered KPI007 Within 10% N/A

Percentage of initial controllable expenditure spent (includes all operating expenses except waste collection payments) KPI008 Within 5% N/A

We deliver reliable services

Percentage of total waste recycled or recovered KPI009 >43.75% 43.5%

Percentage of missed collections from total services KPI010 <0.08% N/A

Number of days landfill or waste and recycling centre closures occurred during normal operational hours KPI011 <12 N/A

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Attachment 4: Delegated authorities DE00585: To determine applications to waive licence registration, application and / or permit fees for charitable

organisations.

DE01407: To decide information as confidential to the Council, to accept information under conditions of confidentiality and to make accessible or disclose information that is confidential.

DE01565: To exercise the powers and functions of the Council to: a. Commence, conduct and resolve;

i. Appeals in the Planning and Environment Court, Court of Appeal and Building and Development Tribunal or Building and Development Committees;

ii. Proceedings in the Planning and Environment Court for enforcement orders (including interim enforcement orders) and declarations;

iii. Proceedings in the Magistrates Court in respect of offences under the Integrated Planning Act 1997 or the Sustainable Planning Act 2009;

b. Advise the divisional councillor of the proceedings.

• DE01566: To exercise the powers and functions of the Council to: a. issuing show cause notices for offences under the Integrated Planning Act 1997 or the Sustainable Planning

Act 2009 b. issuing enforcement notices for offences under the Integrated Planning Act 1997 or the Sustainable Planning

Act 2009 c. issuing informal enforcement.

DE01649: To deal with matters (i.e. approve financial assistance with the cost of cleaning residents' property detrimentally impacted by operations & remediation works) identified in the Cleaning Cost - Home Owner Assistance Payments report on a one off (ex-gratia) basis.

DE02102: To waive the establishment fee for a 360L recycling bin service during promotional periods and whilst undertaking recycling improvement trials.

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