SEPT– OCT 2011
ASSET
MANAGEMENT
IMPLEMENTING
BUSINESS EXCELLENCE
OPTIMISING
MANAGEMENT
SYSTEMS
TRANSFORMING ORGANISATIONAL CULTURE
City of Tea Tree Gully CEO, Dianne Rogowski
lor nt l i c e un lem o C pp Su
THE MAGAZINE FOR SENIOR MANAGERS IN LOCAL GOVERNMENT
CONTENTS
SEPT–OCT 2011
14 NEWS TOP 10 NEWS STORIES.................... 2 NEWS....................................................... 8
ALGA REPORT CAMPAIGNING TO EXTEND ROADS TO RECOVERY By Genia McCaffery, ALGA President......... 11
CEO PROFILE
DARWIN STRIVES FOR IMPROVED FINANCIAL PERFORMANCE
TOWNSVILLE Working to make Townsville
have improved the organisation’s
Queensland’s ‘second capital’................... 54
financial sustainability................................ 36
10 STRATEGIES TO KEEP RISK MANAGEMENT ALIVE
strategies to help keep risk management alive..................................... 38
Eight Local Government Case Studies By Zoe Pattison.............................................22
SENIOR POSITIONS Monitoring the comings and goings
Cover: City of Tea Tree Gully CEO, Dianne Rogowski. Turn to page 14.
of council CEOs........................................ 42
LEGAL BRIEFING UNDERSTANDING MINING AND ENERGY PROJECTS
Publisher: CommStrat
By Patrick Ibbotson, Partner,
Editor: Ben Hutchison
Maddocks................................................. 44
Graphic Designer: Odette Boulton
COUNCILLOR SUPPLEMENT NEWS..................................................... 47
FOCUSING ON INNOVATION TO ENHANCE ASSET MANAGEMENT
TRAINING FOR COUNCILS............... 56
risk management, and governance
City of Tea Tree Gully CEO......................... 14
IMPLEMENTING THE AUSTRALIAN BUSINESS EXCELLENCE FRAMEWORK
PRODUCTS & SERVICES
Tony Harb and Mitchell Morley, audit, specialists from InConsult, provide
................................................................ 18
COUNCIL PROFILE
financial model and initiatives that
Dianne Rogowski,
‘BUSINESS AS USUAL’: LESSONS FROM AUCKLAND’S AMALGAMATION
30
Darwin City Council’s comprehensive
TRANSFORMING TEA TREE GULLY
FEATURES
18
MY VISION
Creative Director: Tim Hartridge Contributors: Rex Pannell, Ben Hutchison, Genia McCaffery, Auckland Council, Zoe Pattison, Patrick Ibbotson, Tony Harb, Mitchell Morley Sales and Marketing: Yuri Mamistvalov Tel: +61 3 8534 5008
to improve asset management through
LEADING THE WAY TO A SUSTAINABLE FUTURE
innovative solutions................................... 25
Wagga Wagga City Council has
Tel: +61 3 8534 5009
implemented initiatives to help the
Email: ruth.spiegel@halledit.com.au
PURSUING SUSTAINABILITY THROUGH IMPROVED ASSET MANAGEMENT PLANNING
council achieve its sustainability goals........ 51
Head office: Lvl 8 574 St Kilda Road, Melbourne VIC 3004
Kangaroo Island Council’s implementation
The mayors of City of Wagga Wagga
of Asset Management Plans...................... 30
and Salisbury lead the way........................ 52
Maroondah City Council identifies ways
Email: yuri@halledit.com.au Subscriptions: Ruth Spiegel
Post: PO Box 6137 St Kilda Road Central, VIC 8008
COUNCIL LEADERS
Tel: +61 3 8534 5000, Fax: +61 3 9530 8911 Webmaster: Madhuraka Godahewa WEB: www.councilmanager.com.au
Sept-Oct 2011 Council Manager | 1
NEWS
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TOP NEWS STORIES
Local government’s thirst for knowledge The sharing between local governments of knowledge about how to improve organisational practices is becoming increasingly active and sophisticated. As the complexity of local government administration increases and the management tactics of council managers become more astute, the thirst for knowledge is becoming greater. This was quite evident at the recent national Benchmarking Best Practice in Local Government Conference, held in Melbourne. Attendees heard from a range of leading councils, with the keenness for knowledge evident from the many eager questions audience members had for presenters. The development of the new Innovation and Knowledge Exchange Network or ‘IKEN’ website is also testament to the continued need by local government leaders to access information about innovation and best practice. Council Manager magazine also assists in the distribution of vital information about leading practices, with this edition providing detailed insight into how councils are improving organisational culture and performance. If you wish to provide suggestions or editorial contributions for future editions of Council Manager, please contact myself on the email address below. Sincerely, Ben Hutchison, EDITOR, Council Manager ben.hutchison@commstrat.com.au 2 | Council Manager Sept-Oct 2011
1 Tool to help assess council financial management Councils around Australia will be able to assess their position relating to asset and financial management with a tool presently being developed.The National Evaluation & Accreditation Tool or Assessment Framework is being developed to evaluate progress by councils in implementing the Local Government and Planning Ministers’ Council National Sustainability Frameworks. The Sustainability Frameworks provide nationally consistent elements for all local government authorities to more sustainably manage their community infrastructure through asset management and financial planning. State and Territory Governments have agreed to facilitate implementation of the frameworks across their councils. The Australian Centre of Excellence for Local Government is developing the national tool, which is proposed as a structured online questionnaire to evaluate progress with implementing elements of the frameworks. The outputs of the questionnaire will enable a council to measure its progress. The ACELG was also in the final stages of developing a Practice Note to assist councils to develop long term financial plans in accordance with the Australian Infrastructure Financial Management Guidelines. A consultation reference group has been set up, consisting of the NSW LG Financial Professionals Group, Local Government Victoria, MAV, FinPro (Vic), Department of Local Government WA, Department of Housing Local Government and Regional Services NT, SA LG Financial Management Group, SA Department of Local Government and Planning, Qld Department of Infrastructure and Planning, WALGA, LGA Tasmania and LGMA.
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ALGA encouraged by response to carbon price concerns
COAG pushing ahead with strategic planning for cities Work commissioned by the Council of Australian Governments (COAG) on capital city strategic planning is scheduled to be completed by the end of 2011. COAG says it views the sustainability and liveability of Australian cities, and issues such as congestion, as significant concerns for the residents of major centres. The council says the states are continuing work designed to improve the future of major cities and the results will be presented to COAG’s next meeting. New South Wales is leading investigations into infrastructure financing delivering better value infrastructure; Victoria is looking at planning controls over Federal Government land, Queensland is heading work on the provision of services and infrastructure to a growing and dispersed population; while the Northern Territory is leading investigations into sustainable development in northern Australia. 4 | Council Manager Sept-Oct 2011
The Federal Government is responsive to the concerns of councils in relation to its carbon pricing initiative, according to the President of the Australian Local Government Association, Genia McCaffery. Cr McCaffery recently met with senior staff of Climate Change Minister, Greg Combet, to discuss concerns including the potential impact on rates and the likely inclusion of relatively small councils under the initiative if it extends to smaller landfills with emissions equal to 10,000 tonnes of CO2. She said the ALGA was assured the expected increases in rates had been factored into broad Treasury modelling and the government’s compensation package for sectors that needed assistance. Rates might have to increase because they are directly attributable to the impacts of a carbon price on council operations. In relation to landfill emissions, Cr McCaffery said the government acknowledged the need to avoid unintended impacts on smaller councils when the main targets of the carbon price scheme were big polluters. Cr McCaffery said she hoped the government would assist small councils if they were caught up in the scheme — the assistance would help them in meeting compliance requirements. She said ALGA was working with state and territory associations to further advise the government on which small councils and landfills might be caught by the scheme before it is finalised through regulation.
4 Councils to have input on Digital Local Government Program Councils and the ICT industry have been called on by the Federal Government to submit their views on draft program guidelines for the Digital Local Government program. The draft guidelines provide information on the purpose and objectives of the program, as well as the process for councils to access the initial funding round. The $17 million Digital Local Government program encourages the development and delivery of online solutions made possible by the National Broadband Network. The potential of NBN-enabled high-speed broadband can be used to improve the quality, availability and speed of local government services. The Digital Local Government program supports the National Digital Economy Strategy’s vision of making Australia one of the world’s leading digital economies by 2020. It will provide funding to local governments representing the first 40 communities to benefit from the NBN. Minister for Broadband, Communications and the Digital Economy, Stephen Conroy, said it was important that relevant parties such as councils, local government associations and the ICT industry had an opportunity to comment on the draft guidelines. Comments on the draft guidelines were able to be submitted by September 9, 2011, to the Department of Broadband, Communications and the Digital Economy via email at digitallocalgov@dbcde.gov.au. To view the draft guidelines or to find out more about the Digital Local Government program visit: www.dbcde.gov.au/digitallocalgov
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Action plan for future of local government in NSW Local government and the New South Wales Government are starting work immediately to refine a draft action plan developed at a conference in Dubbo to discuss the future of local government in the state. The Destination 2036 workshop was held on August 17–18. A steering committee comprising the Local Government and Shires Associations of NSW, Local Government Managers Australia and the NSW Division of Local Government was aiming to have the draft plan distributed to local government during October and to have it ready for implementation by the end of 2011. President of the Local Government Association of NSW, Keith Rhoades, said he was particularly pleased to see the conference highlighted the need for a focus on financial viability for the long-term success of local government. President of the Shires Association of NSW, Ray Donald, said Destination 2036 exceeded expectations of the attendees and the LGSA was looking forward to representing councils on the steering committee to oversee implementation of the action plan. Cr Donald said priority had to be given to a review of the Local Government Act, to clarifying the functions and services provided by councils and to ensuring they were adequately funded and resourced. He said that funding had to include a fixed share of federal tax revenue paid direct to councils.
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Qld floods inquiry
IKEN interactive
looks at council
forum up and running
preparedness Councils in Queensland are affected by 65 of the recommendations contained in the Interim Report of the Queensland Floods Commission of Inquiry. The State Government established the inquiry into the devastating floods in January 2011. The recommendations relating to councils cover areas including disaster frameworks, preparation and planning, and emergency responses. The commission recommended that every local government susceptible to flooding should ensure that, before the next wet season, its local disaster management plan is consistent with the Disaster Management Act 2003; addresses local risks and circumstances, and can be used easily in the event of a disaster. It called on each local government to publish the disaster management plan on its website. The commission said councils should advise the Bureau of Meteorology about any information they possessed about flash flooding or the immediate prospect of such flooding. Councils were also urged to conduct community education programs to provide information on topics including the measures households should take to prepare for flooding. The commission recommended that local governments should consider adopting uniform disaster management software to enable inter-council assistance to be given more easily and effectively, and that deployment of personnel between councils should be facilitated through the Council to Council (C2C) program. The Commission’s final report will be delivered in February 2012. A copy of the Interim Report is available on the Commission’s website www.floodcommission.qld.gov.au
An online, interactive forum — the Innovation and Knowledge Exchange Network or ‘IKEN’— is now live. The IKEN initiative and website is part of Australian Centre of Excellence for Local Government’s ‘Innovation and Best Practice’ Program and is hosted by the University of Canberra. It provides a platform for local government practitioners and researchers to exchange information and ideas, showcase innovation and provide useful links to resources, research opportunities, collaboration and support. One of the main features of IKEN is its eight ‘Communities of Practice’. Each features a Practitioners’ forum, new case studies of innovation and better practice commissioned by ACELG and its partners, resources and events, and access to stories on leading edge and award winning projects and programs. Once registered, council staff will have access to these and other features to help with knowledge exchange within the local government sector, such as links to resources, research opportunities, collaboration and support. Site users are also able to submit policy, program or project initiatives for review or comment by peers and other experts. Visit IKEN at www.iken.net.au.
Sept-Oct 2011 Council Manager | 5
NEWS
8
Low Carbon program for councils expanded Funding for the Low Carbon Communities Program has been expanded by the Federal Government as part of its carbon pricing initiative. Funding for the program was initially $80 million but it has been lifted to $330 million. Councils and community organisations will be eligible to apply for grants to undertake energy efficiency upgrades and retrofits to community facilities such as town halls, stadiums, education facilities and nursing homes. The program includes a system of grants for pilot approaches to help low income households reduce energy costs and a scheme to support low income earners to improve their energy and financial sustainability. Councils will also be eligible to seek funding under the new $10 billion Clean Energy Finance Corporation, which has been established to provide financial support for innovation in renewable energy and other low-pollution technologies. Further information can be found at www.cleanenergyfuture.gov.au. 6 | Council Manager Sept-Oct 2011
9 Commission studies
Councils to fight
impact of council
obesity with $23m
regulation on business
in federal grants
The Productivity Commission’s study into the impacts of local government regulation on business will take 12 months to complete. The commission has received its terms of reference from the Federal Government — it will examine the costs on business of regulation within and between local government jurisdictions. The timeframe for the study includes the release of an issues paper scheduled for early September. Submissions in response to the paper are due by the end of October. A draft report will be produced by the end of February 2012 and the commission’s final report is due to be presented to the Federal Government in July 2012. As part of the study, the Productivity Commission will: – Identify the nature and extent of local government’s regulatory responsibilities where the responsibilities are likely to impose material costs on business, and significant variations in the distribution of these responsibilities between jurisdictions; – Develop indicators and use them to assess whether different regulatory responsibilities, and the way the responsibilities are exercised, have a material effect on the costs of local government regulation on business; and – Identify best practice local government regulatory approaches that have the capacity to reduce unnecessary costs incurred by business, while sustaining good regulatory outcomes. Information on the study can be found at www.pc.gov.au/projects/study/ regulationbenchmarking/localgov.
Thirty-three councils around Australia have been allocated more than $23 million to support campaigns to combat obesity in their communities. Each of the councils will receive a grant of more than $700,000 under phase two of the Federal Government’s Healthy Communities Initiative to run programs to encourage and support people to adopt healthier lifestyles. Federal Health Minister, Nicola Roxon, said 80% of the local governments had overweight and obesity rates above the national average and experienced significant social and economic disadvantage. Ms Roxon said the funding was being targeted where it was most needed because it was important to keep Australians healthy and out of hospital. She said preventive health measures worked and local governments were introducing innovative physical activity and healthy eating programs that made a difference. Under Phase Three of the Healthy Communities Initiative, funding of $566,042 per grant was available for up to an additional 47 local governments for a period of up to 21 months (October 2011–June 2013). The application period for Phase Three grants was open between July 6 and August 19, 2011.
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Linton Pitt Lawyers Pty Ltd Proudly part of The ARMS Group of companies LESSEN THE BURDEN OF RATEPAYERS ALREADY IN abn 58 104 379 482 DIFFICULTY COUNCILS AND RATEPAYERS BENEFIT FROM SUBSTANTIALLY REDUCED OVERDUE RATES COLLECTION COSTS
As previously announced in CM Magazine for Council Managers, Linton Pitt Lawyers are offering NSW Councils an overdue rate collection service that greatly lessens the additional burden of solicitor’s fees on overdue ratepayers. Developed under an innovative new process for collecting outstanding rates, developed with our parent company The ARMS Group Pty Limited, the system has approval from Local Government Procurement. Both councils and defaulting ratepayers will be better off under the system that guarantees a 60% discount on scale costs that currently are born initially by the council and subsequently passed to the debtor. We can provide debt collection services from the initial contact right through the litigation process. Our aim is to ensure all your ratepayers and customers have their accounts settled in a professional manner protecting the council’s good name and rehabilitating your customers to current payers. For those under hardship, our hardship team will professionally manage the accounts under the terms of Council’s guidelines. Linton Pitt has offices in Parramatta, Hornsby and Newcastle For more information please contact Jeffrey Joseph at Linton Pitt Lawyers (02) 9472 7450 | Email jeffrey@lintonpitt.com.au | 117 Pacific Highway Hornsby 2011
NEWS
Local government constitutional recognition panel Two stalwarts of local government lead the sector’s representation on the panel established by the Federal Government to progress the recognition of local government in the Australian Constitution. President of the Australian Local Government Association, Genia McCaffery, and President of the Local Government Association of Queensland, Paul Bell, are part of the 18-member panel that will consult with stakeholder groups and the community on options for recognising local government in the Constitution. The panel will look into the level of support for constitutional recognition and identify possible forms that recognition could take. The outcomes of its consultations will help shape any proposal to put to a referendum. The panel is chaired by former Chief Justice of the New South Wales Supreme Court, James Spigelman. Other members representing local government or who have links to the sector include: – Lisa Scaffidi, the Lord Mayor of Perth; – Jim Soorley, Lord Mayor of Brisbane from 1991 to 2003 and a consultant to governments and business; – Lucy Turnbull, Lord Mayor of Sydney from 2003 to 2004 and Deputy Chair of an advisory panel to the COAG review of capital cities’ strategic planning systems; – Peter Clarke, newly appointed Chair of the Board of the Victorian Urban Renewal Authority and former Melbourne City Councillor; – Jane Prentice, former Brisbane City councillor and Federal MP; – Sid Sidebottom, former Central Coast councillor and Federal MP; and – Professor Graham Sansom, Director of the Australian Centre of Excellence for Local Government and Director of the University of Technology, Sydney, Centre for Local Government. 8 | Council Manager Sept-Oct 2011
The panel will report to the Federal Government by the end of 2011. The government is committed to holding a national referendum on the constitutional recognition of local government during the term of the current government or at the next Federal election.
Outcomes from the roundtable and responses to the LG Indigenous Employment Program Green Paper — Closing the Gap through Place-based Employment — will also inform the development of a White Paper. An interim White Paper is due for completion at the end of 2011.
Councils urged to
Australian councils
strengthen Indigenous look to UK to alleviate employment
skill shortages
Councils around Australia have been urged by the Minister for Indigenous Employment and Economic Development, Mark Arbib, to employ more Indigenous people. Mr Arbib made the call during an address to the National Roundtable on Aboriginal and Torres Strait Islander Employment in Local Government. About 50 representatives from local government, federal and state government and Indigenous employment sectors attended the two-day roundtable to discuss how they could contribute to closing the gap on Indigenous employment. Minister Arbib said the Federal Government was committed to working with councils which are well placed to employ Indigenous Australians, especially in remote and regional areas. He said the Australian Centre of Excellence for Local Government had identified that local councils were facing a crisis in long- term workforce planning due to an ageing workforce and the skills drain from the regions which had been compounded by demand from the mining boom. Mr Arbib said the solution was investing in local Indigenous communities and individuals who could provide those skills in the long term. Roundtable delegates heard about practice models of Indigenous employment and Indigenous employment brokering in councils such as the LGPro award- winning Indigenous Employment Program in Latrobe City Council in Victoria. Since 2003, over 300 Indigenous people have been employed, with an 85–90% retention rate.
Local Government Managers Australia (LGMA) has launched an international recruitment campaign to alleviate the skill shortages that are affecting the local government sector. LGMA National President and CEO of the City of Greater Dandenong, John Bennie, said many Australian government authorities were finding it difficult to recruit talent with the required skills and experience. Cr Bennie said local government was increasingly “making do by hiring staff with skills and experience lower than desired, just to get someone in the seat”. He said ultimately this approach would impact on the sector’s capacity to provide much needed services to communities, particularly in Western Australia and Queensland where councils were exposed to the significant impact of mining activity. The campaign “UK has talent!” was developed by the LGMA following a visit to the UK by national Chief Executive, John Ravlic. Mr Ravlic said UK local government was experiencing difficult times with some eight per cent of staff layoffs expected due to central government expenditure cuts in a move to balance the budget. He said an estimated 200,000 UK local government employees would lose their jobs over the next two to three years. Mr Ravlic said to assist Australian local government with attracting and recruiting the required skills and experience, LGMA had partnered with local government and international recruitment experts, McArthur and WALGA Workplace Solutions. He said more than 20 councils had expressed interest in the international
ABOUT THE CONFERENCE In an increasingly competitive labour market it is imperative that public sector employers implement strategies to position themselves as an employer of choice in order to attract, recruit and retain skilled personnel. The Public Sector Recruitment & Retention Conference 2012 will provide expert advice about how to identify, design and implement successful workforce planning strategies to meet the unique recruitment and retention challenges faced by the public sector. Through the presentation of practical information and case studies, this national conference will provide you, as a HR professional, with the chance to improve your knowledge of how to develop and implement successful recruitment and retention strategies – and ensure that your organisation remains one vital step ahead of the competition. The Public Sector Recruitment & Retention Conference 2012 will also offer a valuable opportunity for HR professionals to network and benchmark with their peers to develop successful strategies to optimise their recruitment and retention processes.
TOPICS MAY INCLUDE • Managing the talent pipeline and succession planning • Competing with the private sector to recruit and retain employees • Using HR metrics to measure and improve recruitment and retention processes • Incorporating private sector techniques into public sector recruitment and retention strategies • Improving recruiting systems • Maintaining diversity and equality in the workplace • Performance management and managing underperformance • Integrating social media into your organisation’s recruitment strategy • Recruiting to address skills shortages
DELEGATE COMMENTS ABOUT THE 2011 CONFERENCE
SPEAKER/PRESENTATION ENQUIRIES:
“Great opportunity to share information, network and realise we are all in the same position and to work together”.
Individuals interested in speaking at the conference are invited to submit abstracts of approximately 100-150 words to:
“Well done – fantastic conference. Great speakers.”
Kim Coverdale, Conference Convenor, PO Box 6137, St Kilda Rd Central 8008
“Excellent practical ideas presented.”
SPONSORSHIP & EXHIBITION
WHO SHOULD ATTEND Public sector professionals who are responsible for, or associated with: Human Resources Recruitment Retention Organisational and Workforce Development People Management
Email: kim.coverdale@commstrat.com.au
This includes but is not limited to: Local Government State Government Federal Government Not-for-profit and charitable organisations Educational institutions Publicly funded utilities
This event will also provide a valuable opportunity for representatives of private industry to become informed of NBN roll-out issues at the local government level, and to engage and network with key representatives of Australia’s local government sector.
Contact Scott McKinnon, Manager - Strategic Business Development Phone: (03) 8534 5018 Fax: (03) 8534 5118 Email: scott.mckinnon@commstrat.com.au
REGISTER INTEREST To register your interest in receiving the full speaking program when available please email kim.coverdale@commstrat.com.au Alternatively, contact Denise McQueen, Conference and Event Manager Phone: +61 3 8534 5050 Fax: +61 3 9530 8911 Email: registration@halledit.com.au
NEWS
recruitment campaign. Over 30 current positions had been identified as not being filled in the following skills shortage areas; planning, engineering, environmental health, building surveying, maternal child health and IT. Councils interested in participating in the international recruitment initiative can register at www.lgma.org.au under the international recruitment tab.
Landmark energy saving deal for regional council Wagga Wagga City Council and Low Carbon Australia have entered into an energy efficiency agreement, the first of its kind for regional Australia and a local government authority.
The agreement will see the council save about $60,000 off its energy bill and avoid over 188 tonnes of CO2-e each year. The project involves the installation of energy efficiency equipment at three key council facilities — the Civic Centre, Civic Theatre and Wagga Wagga Airport. Energy efficiency activities include light and light fitting retrofits, lighting controls and voltage reduction units. Wagga Wagga Mayor, Wayne Geale, said the project strengthened the council’s role as a community leader in improving its greenhouse footprint through smart business management. He said there was a substantial business and community network in the city, and council hoped that by leading the way, others would consider adopting such an innovative greenhouse action. Low Carbon Australia CEO, Meg McDonald, said the project was important for councils and businesses to access expertise and finance to purchase energy
saving equipment. She said it meant local governments and businesses could implement energy equipment, which would save them money and energy.
Renewed focus on customer service at Tweed Shire Tweed Shire Council has launched a revamped customer service system after several months of staff training and development. The council said the new system represented a streamlining of customer interaction involving telephone, face-to-face and electronic communications. Operations now focus on a Contact Centre model, with improvements including customer booths with computer and phone access to assist with detailed and technical queries; and improved to publications.
Sydney, March 7 & 8, 2012 www.lgohs.com.au The national Local Government OHS and Risk Management Conference will be staged at the Novotel Brighton Beach, Sydney, on March 7 & 8 2012. As Australian councils face an increasingly complex risk environment with limited resources, this national event will provide attendees with the latest advice about leading local government risk management and safety practices. This conference will be designed to provide local government senior executives, risk management and OHS coordinators and human resource professionals with information on how to identify, plan and implement OHS and Risk Management strategies that result in safe, productive and consultative workplaces. Case study presentations will cover topics including: • Promoting and encouraging a culture of safety within a council workforce. • Successfully implementing Risk Management frameworks in a local government organisation.
• Reducing premiums and other costs associated with OHS management. • Analysis of emerging legal issues linked to OHS and risk management.
Call for Speakers: To propose a presentation email Conference Director, Ben Hutchison via benh@halledit.com.au General Enquiries: Denise McQueen Conference & Event Manager Phone: (03) 8534 5050 denise.mcqueen@halledit.com.au
10 | Council Manager Sept-Oct 2011
Sponsorship & Exhibition Enquiries: Paul Andrew Exhibition Manager — Hallmark Conferences + Events Ph: (03) 9370 0040 paul.andrew@halledit.com.au
Campaigning for an ongoing Roads to Recovery Program
By Genia McCaffery, ALGA President
I
n July, I wrote to all councils urging them to pass resolutions calling on the Federal Government to increase and extend the Roads to Recovery Program and address the estimated shortfall of investment in local roads. With the Roads to Recovery Program due to end in 2014, I believe it is now time for us to begin our campaign for the Program’s continuation. In the past, we have been very successful in securing two extensions to the Program and an increase in funding, which saw annual allocations rise to $350 million in 2009. By the time the Program ends in 2014, more than $4.5 billion in additional funding will have been provided for local roads. The campaign needs the support of every council as the continuation of Roads to Recovery is not a certainty in the current economic environment and there are sometimes confused and conflicting messages that come from parts of local government. We sent a powerful message to government in 2000 and we need to do that again. I believe our success in the past has come from mounting a strong and united campaign that has sent a clear message to the Federal Government about what local government needs to meet the roads access expectations of its communities and industries. There is no question that local government needs the funding. Research commissioned by ALGA and released at the 2010 National Local Roads and Transport Congress in Bunbury, shows that the annual national shortfall in funding for local roads is about $1.2 billion annually. Our message today is, as it was in 2000, that all councils need support to maintain their road systems. At ALGA we are concerned at suggestions that road funding should be provided only to certain councils on an application basis or that there should be changes in the simple, yet very effective and efficient, administrative arrangements for the Program. Such proposals could cloud our campaign or be used as an excuse for alternative and more complex administrative arrangements. As part of our campaign, we need to emphasise the benefits of the current arrangements and ensure that any new Program continues with administrative arrangements that avoid a web of red tape.
The administrative arrangements for Roads to Recovery give councils certainty of funding for five years and allow them to decide what projects are funded without the need for prior approval of Canberra. The Roads to Recovery Program is the only infrastructure program funded by the Federal Government that does not require detailed application and approval processes by the Federal Minister. To be blunt, the Roads to Recovery administration arrangements are not favoured by the National Audit Office and other parts of the Federal bureaucracy because of the lack of input for individual projects and hence the apparent lack of control. Yet despite several audits by the National Audit Office no major issues have been found with the Program, unlike other Federal Programs. The success of the delivery of the Roads to Recovery program is reflected in the resolution we have asked councils to pass and to forward to the Prime Minister, the Minister for Infrastructure and Transport and their local Federal Member of Parliament. ALGA will be launching local government’s Roads to Recovery campaign at the 2011 National Local Roads and Transport Congress to be held in Mount Gambier from 16–18 November. Our advocacy on this vital issue will be strengthened by a show of unity and it is important that as many councils as possible attend the Congress in Mount Gambier for the launch of the campaign to show local government’s strong support for continuing Roads to Recovery. Councils are encouraged to register for the Congress via the ALGA website and take advantage of our “early bird” registration rates. By working together, I have no doubt that we can deliver a convincing argument and achieve an ongoing Roads to Recovery Program.
Our message today is, as it was in 2000, that all councils need support to maintain their road systems.
Sept-Oct 2011 Council Manager | 11
Resource recovery solutions for local government SITA — the leader in sustainable resource recovery management — is engaging with all major metropolitan councils around Australia to see what partnerships can be developed to advance their resource recovery systems. Simon Lee, General Manager, Strategy and Sustainable Development with SITA, said the engagement process involved introducing the company to councils, sitting down with them and understanding their sustainability goals and aspirations. “Every council has collection and processing contracts for their different bin collections. The lead time on some advanced resource recovery processing tender contracts can be very lengthy (five to six years). We talk with the councils, determine what their needs are and then start to offer solutions.” Mr Lee said SITA’s overarching philosophy was that just about everything — unless hazardous — should be able to be reused, recycled or recovered. “Community expectations are moving towards landfill disposal being short of the best use of resources, but markets must be developed for the extracted resources inherent in these waste streams in parallel to their use as feedstocks.” Mr Lee said SITA was the Australian leader in operating advanced resource
SITA — ResourceCo recovery facility in Adelaide
12 | Council Manager Sept-Oct 2011
recovery technology (ARRT) facilities and had developed two complementary ARRT platforms — the compost producing facility and the alternative fuel producing facility. “The composting advance resource recovery facility can accept and process organics in either the rubbish (red-lidded) bin or in the garden, or even a combined food/garden (green-lidded) bin. These organic feedstocks are then transformed into quality composts for use in home gardens, local sporting fields and even horticulture and agriculture.” Mr Lee said residents purchasing recycled organic products for their gardens and councils using the products to revitalise local sporting ovals and fields created a feedback loop that improved the social amenity of the communities, which generated the waste feedstocks. “This positive engagement process helps to educate residents to do the right thing and place the correct waste in the correct collection bin, while closing the loop on this resource at a local level.” In 2003, SITA produced around 15,000 tonnes of compost nationally. That figure is projected to rise to over 500,000 tonnes in 2011, which makes the company the largest producer of composted products from urban-generated waste streams in Australia. But it doesn’t stop there. Mr Lee said the
residual material left over from the rubbish bin once the organics were separated was a feedstock in itself. This dry, combustible material is ideal for SITA’s alternative fuel-producing ARRT platform, which is showcased by the SITA-ResourceCo recovery facility in Adelaide. “The majority of the material that is left over after you remove the food and grass clippings is mixed plastics, timber and textiles, shoes, clothes, leather and the like, which has a high embedded energy level in it. It is ideal to go to an alternative fuel advance resource recovery facility,” Mr Lee said. “At our Adelaide facility, we can take the combustible feed stock and separate it into its constituent parts. We can then blend and mix back the various components to produce alternative fuels which meet the specific requirements of an existing furnace. “This process engineered fuel (PEF) is a direct replacement for fossil fuels in power stations and cement kilns. From our Adelaide facility, we sell this fuel to companies like Adelaide Brighton Cement (ABC) for use in their cement kiln. ABC has entered into a 15-year supply agreement with us.” Mr Lee said SITA hoped to construct alternative fuel facilities in each Australian capital city based on the success of the Adelaide facility.
SITA — ResourceCo front lift truck
THE FUTURE IS BRIGHT
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CEO PROFILE
Transforming Tea Tree Gully City of Tea Tree Gully CEO, Dianne Rogowski, describes how her council carried out a major review of the organisation and then implemented a raft of changes that have delivered many benefits.
A
After a long career in the banking sector, Dianne Rogowski was appointed CEO of South Australia’s City of Tea Tree Gully in 2009 and quickly embarked on a major review of the organisation’s culture. Armed with a $70 million annual budget and 450 full time equivalent staff, the City of Tea Tree Gully provides services to a residential population of 100,000. In the following edited extract of an interview with Council Manager, Ms Rogowski describes how the review led to a series of major benefits, which have boosted organisational culture, enhanced strategic planning and ensured the delivery of improved customer service.
Council Manager: How did the organisational review commence? DIANNE ROGOWSKI: I’ve come in fresh from the private sector probably with a different focus from your normal (local government) CEO. And one of the things when I took up the role here at Tea Tree Gully in February 2009, was the council placed a rider within my employment contract that I undertake an organisational cultural review within six months. This review was undertaken with immense sensitivity because, as you can imagine, I am not only a new CEO I am new to local government so I worked really hard that first six months trying to get to know the staff. I am a great believer in people. Your people are your best asset and you really have to get in front of your people and try and let them see who you are and that you are very trustworthy and you’re here with the best intentions to make their life better. But also it is not about playing happy families — we have a business here to run. So when I did the review I was aware that, I think a decade before, there had been done some sort of review done here that had traumatised people. So when we undertook the review it was done with a lot of sensitivity with staff and respect for them — some of whom who had worked for council all their lives. So it really wasn’t about coming in and saying the council’s broken, because it wasn’t. It was a really good council but it wasn’t great — and hence had the potential to be great.
How long did the review process take? We started the review in April 2009 so when I came on board in February I had to go through a whole tender process, and we 14 | Council Manager Sept-Oct 2011
started early April with some external consultants that needed to be independent. And we had completed the review by September.
What were the findings of the review? There were five components of the review — one was the organisational culture which the elected members were concerned about. I was concerned about the structure of the organisation. I didn’t believe, even before I got the job, that it was appropriate that (the council) didn’t have any department or portfolio that focused on the future of City of Tea Tree Gully. We also looked at the council’s services to understand what we were delivering was what the residents actually wanted and valued. The fourth one was looking at new business opportunities for council. The fifth component was one that the then executive had thrown in, which was around how good we are in governance. The review, when it was finished in September, had 241 recommendations of which we’ve implemented approximately two-thirds. We have looked at the remaining — some of them are duplicated and we won’t implement them — and there’s probably about a dozen to 20 that we are still implementing, and they’re restricted a little bit by budget constraints.
How did you get staff support and engagement in the process of implementing the review’s recommendations? From the very beginning of the review, staff were really included in this. I’ve never seen the extent of consultation done and I had briefed the consultants that because of that baggage from a decade earlier, it was really important to me that (staff) were part of that review and were really involved in that — that it didn’t just happen to them. So the consultants did a fantastic job of having focus groups, one-on-one sessions with the staff and a lot with our outdoor workers. We ran culture surveys as well. They were all part of the whole review but also part of the solution. The executive team that I had on board at the time, which was the one I inherited, we met with the consultants between half a day and one day per week just to check what was happening, what was the feedback and were the consultants heading in the right direction. So when there were things brought to the table that didn’t sit well with us we were able to address them immediately.
So when the recommendations of the review came out I then ran roadshows across all of the departments and all of the staff within council, and rolled out the recommendations and sought the support of staff because a lot of feedback came through to me from staff like “we’ve all done this before and the report just goes into the bottom drawer” — and I really didn’t want them to think that. And so the first thing that we did, we started at the very top of the organisation and not the bottom, and we restructured the General Managers. They were called General Managers at the time. I deliberately changed the title to Directors because I thought the leadership wasn’t where I wanted it to be, and I wanted Directors who would empower their people, coach their people, and be really thinking strategically.
How many Directors did you end up including in the organisational structure? Well I had four when I got here. The recommendation was that we create new portfolios that meant five Directors, and the fifth portfolio was all about the future. It contained strategic planning, business and economic development, strategic marketing and communications, people and organisational development. So it was one whole portfolio looking at the future.
… it was really important to me that (staff) were part of that review and were really involved.
Photo: Dianne Rogowski, CEO, City of Tea Tree Gully Sept-Oct 2011 Council Manager | 15
CEO PROFILE
There were some pretty deep and meaningful conversations with the General Managers I had at the time who decided not to apply. That was done very respectfully — they understood the leadership I was looking for and the type of leader, and it wasn’t them and they decided to leave. I then went to the market and I employed five new Directors. When you think back now, they are completely different. They’re a mix of private sector and a mix of local government — so a nice smattering. If you count me in that executive team we have three females and three males — a nice gender balance. So the organisation went from being all male to being a gender balance and a nice mix of private sector and public sector, and, at a very strategic level, changed the name to ‘Director’ to clearly emphasise that these people are not going to be in the business — they are going to be directing and showing really strong strategic leadership and coaching. In addition to that we had five new managers which we employed and they were really frontline managers in business and economic development, customer relations, strategic planning, development assessment and community engagement. And those five managers were employed along the lines of improving our communication and our relevancy back to our community. They staked out shopping centres and interviewed people around how well did people think council was doing. And the feedback was that we weren’t relevant to our community. And so these five new frontline managers were about improving that. As you can imagine, one Director and five new managers is a significant spend and I was really heartened, being a brand new CEO to a brand new sector, that the elected members placed their faith in me for that additional spend that was ongoing every year. I think one of the things that I really hold in high regard is the strong leadership from our elected members in supporting the implementation of the review.
Cultural improvement in the organisation was another key aim — how did you try to achieve that? The first six months I said to the Directors — I just want you to spend six months getting to know your people, understand them, look at their strengths and their development needs. What we did as an executive was work furiously behind the scenes, but knowing we had the right structure with the right corporate leaders we then focused — and still are to be perfectly honest — on the systems and frameworks that are clearly lacking I think within local government. I can speak for Tea Tree Gully, but I think councils as a whole are recognised as being relatively good councils but they largely rely on the commitment, the skill and the loyalty of their staff. I don’t think there is any clear infrastructure, or systems and frameworks, that sit behind them. An example of that is the technology: every council has a different technology that doesn’t quite fit the bill. There’s no one system that covers all of local government and provides everything we need. We’re not in competition with each other, so we need to be working more collaboratively CEO to CEO to get a best practice outcome. 16 | Council Manager Sept-Oct 2011
From about mid 2010 I did a lot of work with the elected members around a new strategic plan. Within any large organisation you have a roadmap and we didn’t have one. So externally I worked with the elected members and then brought that feedback in. From then they cast the vision for the city and what they saw as the priorities. Through that new portfolio we completed the new strategic plan, a City Masterplan. In addition to that, internally for the first time ever, we created a new corporate plan. The key result areas, or KPIs, in that plan are aligned to the Business Excellence Framework. The (corporate plan, departmental business plan and employees’ individual performance plans) — those suite of plans were providing to all our staff the direction which the organisation needs to head to fulfil the obligations within our strategic plan. When I talk about the individual performance plan — that is like a performance review. We didn’t have one when I got here. We had a 30 page feel-good motherhood statement that no-one valued. One of the things we did was we went through and we undertook the Human Synergistics LSI surveys in mid 2010. We’ve done that again in mid 2011 and we’ve aligned the cultural results to the Human Synergistics circumplex — and that’s interesting. It’s better than I thought it would be. And this year once we completed the surveys for the second time, our corporate leaders have been more engaged in the process and cognisant of the benefits. We followed up the results with one-on-one coaching from the consultants which my people have told me has been invaluable. So this is them looking at themselves now as corporate leaders, whereas before I think they were in a top-down autocratic management style. We’re now really encouraging them to stand up and be leaders, and that LSI tells them where the gaps are. The other thing we’ve done is we’ve implemented an executive development program for myself and the five directors. And we spend one day a month with an external coach building our resilience and to just ensure that we are all singing with the one voice, that we’re coaching the same, that our expectations of ourselves and each other and our staff are the same. That’s really important that the executive is all aligned and talking the same things and heading in the same direction. We have also made a similar investment in our managers by providing them with a management development program to build their leadership skills.
that executive team… went from being all male to being a gender balance and a nice mix of private sector and public sector
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AMALGAMATION
‘Business as usual’
lessons from Auckland’s amalgamation Staff at the new, integrated Auckland Council had their own Y2K date — Nov. 1, 2010. That was when 8000 employees, who had just the previous week reported to work for eight different councils across the greater Auckland region, turned on their computers to log in under the new entity. Would the combined 3500 computing and software systems fail on the very first day? “There was real trepidation as to whether it would all hang together and some expected there to be major problems,” said Doug McKay, Auckland Council’s Chief Executive. “There was no one employee reporting to the same manager, in the same job or in the same place. As it was we had 500 people turn up to work to discover we didn’t have desks for them! “But we were clear on the Day One ‘must haves’ — technology such as email, security and telephony, along with core business support tools, which ensured our people continued to be paid, were safe and could access intranet. We also needed accounts payable and purchasing to be up and running.” Preparation was the key to ensuring systems didn’t fail that first day and McKay, who paved the way for amalgamation from May 2010 via the Auckland Transition Agency, ensured a comprehensive risk analysis was undertaken well in advance. The agency identified a civil emergency, such as the Christchurch earthquake, and computer problems as the main clear threats to the new entity. The Auckland Council is New Zealand’s first large-scale foray to this type of public governance, although other countries have amalgamated cities into one unitary authority.
Auckland Chief Executive Doug McKay
18 | Council Manager Sept-Oct 2011
Toronto, Luxemburg and Brisbane are among the areas that have undergone a similar transition. The amalgamation aims to bring better decision-making to the region, reduce duplication of services, and engage more effectively with diverse communities. McKay ensured his Executive Leadership Team of nine people were in place one hundred days in advance of November 1 so the initial transition would be as smooth as possible. “Some of us were still in jobs, but we couldn’t have our executive team come in cold on day one. We formulated a very detailed plan to set four core priorities for the first one hundred days of the new governance structure.” The priorities were: 1. Operational stability 2. Effective new governance 3. Deliver new planning regime 4. Begin new culture development The first three took precedence over the fourth priority, given the size and scope of the transition. Auckland covers nearly 500,000 ha — a land mass bigger than some countries. As well as hosting New Zealand’s largest city, much of the Auckland region is rural, making the new Auckland Council the country’s largest rural council. “The amalgamation is the single largest transformation in New Zealand’s corporate history,” said McKay. “We are creating a whole new form of local government in New Zealand with a local body which manages NZ$30 billion in assets and has $3 billion in annual revenue. “It’s a bit like merging Fonterra with Telecom, not only in terms of the number of employees, but also because of the differences of those two businesses,” said Alex Swney of business development group Heart of the City. “If Auckland Council were a listed company, it’d be the country’s largest. And it encompasses areas which have radically different financial and cultural profiles — stretching from rural districts such as Rodney to the heart of the CBD.” The new entity combines four city councils, three district councils and the regional council into one. That includes eight separate district plans and operating models. All while maintaining a “business as usual” shop front for the people of Auckland in the provision of frontline services, said McKay. Fifty-five-year-old McKay has an extensive background leading large corporates on both sides of the Tasman, including senior roles with Carter Holt Harvey, Lion Nathan and Goodman Fielder. Most recently, he served as Chief Executive Officer at Sealord and CEO and Executive Chairman of Independent Liquor.
Auckland streetscape
McKay acknowledges his appointment to the head of the country’s largest public sector body was controversial. “There are a lot of musical chairs in local government with the same names and faces cropping up again and again in different roles. My appointment has caused people to rethink the paradigm; a lot of those in council don’t think they’re in business!” The ongoing work — both from operational and political points of view — is gargantuan for McKay, Auckland Mayor Len Brown, councillors, staff, local boards and new council-controlled organisations (CCOs) Auckland Transport, Waterfront Auckland, Auckland Tourism, Events and Economic Development (ATEED), Watercare Services, Regional Facilities Auckland (RFA), Auckland Council Investments Ltd (ACIL) and Auckland Council Property Ltd (ACPL). On top of the workload is the constant scrutiny and pressure on all involved to demonstrate that the transition will result in value for money for the city’s ratepayers. Some policymakers have suggested that, if this consolidation works in Auckland, then regions such as Wellington or Canterbury may also see their local bodies combine. Some frustrations were bound to occur given Auckland’s local government moved from being organised geographically to one based around function. “Staff are no longer reporting to a manager who is working next door and, for some, this is a huge shift,” said Alan Brookbanks, manager of human resources (HR) for the council. “And there were people who, when they were working in a smaller organisation, could be a very senior manager. Now they’re working for a larger entity, this may no longer be the case.” Brookbanks had handled HR during a complex split of Queensland Rail, which involved an IPO of part of that business, when he got the call from McKay to join the new entity.
The Auckland Council is New Zealand’s first large-scale foray to this type of public governance… The two had worked together at Lion Nathan and shared the view that HR should be set up as a business partner to support senior managers within council. “While HR has the role of setting up transactional centres of excellence, it is also very much the conscience of the organisation,” said Brookbanks. “We are the keeper of the keys of the organisation’s values, and especially in how it treats its people. “The liberating thing about this particular role is that there is no unrealistic pressure to make everything happen tomorrow. It’ll be a long-term project of at least five years to instil things like a cohesive organisational culture.” McKay said staff were often frustrated by his refusal to entertain requests for changes to roles and organisational structure in the first six months. “I became the ‘no man’, but I felt that people needed that time to know the problems with the existing structure before making changes. And operational stability, meaning no disruption to service levels, was our paramount concern.” The main planks needed to develop the new organisation’s culture, which incorporated the best of values and behaviours of the eight legacy councils, were in place from November 1. Induction roadshows were held from October and communication tools, such as staff intranet and weekly chief executive updates, were quickly put in place. Sept-Oct 2011 Council Manager | 19
AMALGAMATION
The legacy councils also did valuable work in preparing employees for the transition ahead and conducted resilience training with their teams. McKay commissioned a major piece of research to identify what values staff wanted to retain and what they wanted to shed, then tested these ideas with a group of 20 from across the business. “What people most wanted to jettison was the infighting that had gone on between the eight councils which had inhibited the progress of Auckland in the past. Previous attempts at informal cooperation had failed to deliver meaningful change; we had to do things differently. Still, it’s fair to say there was a lot more anxiety than there was excitement about potential benefits in those early days.” The executive team developed a set of values, behaviours and capabilities key to shaping the new culture and is now directing investment and people toward achieving them. Success would be the delivery of the highest quality of service from well-trained staff who are happy in their work and environment, said McKay. The values established are: • Pride • Accountability • Respect • Service • Teamwork • Innovation Employees were surveyed on their level of engagement within those first three months, allowing the new organisation to establish benchmarks. Some targets were set such as boosting engagement levels 3% when staff are next surveyed early next year. Responsibility for staff engagement rests collectively with the executive and senior leadership teams, which are tailoring plans to the needs of individual business units. The survey found that most staff were generally happy with their direct managers and the teams they are working in. A percentage of employees were still deciding how they feel about our new organisation, and there was a small percentage who felt disengaged. “People said I was crazy measuring engagement at this early stage and every expectation was that morale was going to be in the toilet,” said McKay. “But results from the survey were better than expected, I think, due to the resilience and tenacity of our staff, along with the patience and forbearance of the people of Auckland.” Also helping morale in those first few months were some early wins. Amongst McKay’s highlights: 1. Savings made: increases to rates were 3.94%, compared with what would have been a 9.3% increase from the legacy councils. The 3.9% increase includes the largest capital investment budget in Auckland’s history of nearly $1.1 billion. 2. “The calibre of management we’ve managed to lure to the new organisation, including top people who would never have been attracted to a career in local government in the past.” 20 | Council Manager Sept-Oct 2011
3. New democratic and commercial structures are in place and operating, comprising: • 170 politicians in new roles. • 27 committees, forums and panels. • An Independent Maori Statutory Board. • 7 service delivery and asset management companies (6 of which are in New Zealand’s top 30 companies in terms of size). • 56 new directors and chairs. All involved are conscious that the retention of frontline staff is critical to both the maintaining of service levels, but also in the realising of future priorities. All personnel, including new councillors and locals boards, undergo a full induction programme so they receive the tools they need to hit the ground running. Key to this is the development of a new dynamic culture amongst the 8000 staff who are housed in more than 77 service facilities and other locations across the region. “The geographic spread of our people is the unfortunate reality of merging eight organisations from every corner of the region. Our service centres still need to be based in local communities. Still, there will be significant rationalisation of legacy council properties and we’re looking for a single building to house our 3000 CBD staff over the next couple of years and consolidate from the nine CBD locations now.” The biggest challenge from the chief executive’s perspective was ensuring that local communities were properly represented, and resourced, in the new governance model via 21 local boards. McKay takes an intense interest in ensuring the boards work well in representing their localities and are not sidelined by the larger council and CCOs. The Auckland Transition Agency went through the council budgets and extracted projects worth about $400 million to hand over to the local boards. The Council’s first full budget this year allowed local boards to initiate and reprioritise projects. “The local boards are key to this whole process and the model is to resource these with planning and regulatory personnel direct from the main body of council,” said McKay. “To allow independent resourcing introduced the risk of 21 local fiefdoms, which was the whole problem of the governance model Auckland Council replaced. Local boards continue to challenge this resourcing model, but we’ve got to a place where there’s a positive, healthy discussion happening.” Another massive programme of work for staff, local boards and councillors alike is to support the development of a raft of statutory plans required. These include the Auckland (Spatial) Plan, which paints a picture of what residents can expect to see in 2041 and is now due for public consultation. Local Board Plans and Funding Agreements have already been adopted; these attracted more than 5000 public submissions. The council is currently designing a high-level Long Term Plan, setting out the activities and priority projects that the council will undertake over the next 10 years and, importantly, how these will be funded.
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Innovation in stormwater management, potable water and wastewater treatment will be examined in the context of the need for councils and authorities to build and maintain infrastructure that is part of a sustainable and integrated water management cycle. Leading strategies for achieving Integrated Water Management in local communities will also be detailed at the conference. With dual conference streams, this event will feature case studies of leading practice, expert analysis and interactive sessions that will stimulate and encourage attendees to examine how practices within their own organisations can be improved. This event is staged by Water Business Australia, producer of the Water Australia Summit and the book Securing Australia’s Water Future. Water Business Australia is a division of CommStrat, which also produces the Australian Road Engineering & Maintenance Conference and Government Sustainability Conference, and publishes titles including Council Manager magazine, Local Government News, ROADS Magazine and EnviroInfo. CALL FOR SPEAKERS: To propose a presentation for this conference, please email a 300-word summary of the presentation to Conference Director, Ben Hutchison via benh@halledit.com.au
For enquiries about Sponsoring or Exhibiting, please contact: Brian Rault National Sales Manager Ph: (03) 8534 5014 E: brian.rault@commstrat.com.au For conference registration and attendance enquiries please contact: Denise McQueen Conference and Event Manager Ph: (03) 8534 5021 E: denise.mcqueen@commstrat. com.au
SPEAKERS SECURED SO FAR INCLUDE: Brenton Curtis, Manager Environmental Sustainability for City of Tea Tree Gully. Sam Samra, Senior Manager, Water Utility Performance, NSW Office of Water. Ben Pohlner, Manager Recycled Water at Wannon Water. Russell Burns, EPO — Sustainability, Bankstown City Council. Phillip Johnstone, Director Water Sensitive Cities Science-Policy Partnership, Monash Centre for Water Sensitive Cities & Department of Sustainability and Environment Office of Water. Anna May, Acting Manager, Renewable Resources, Western Water. John R. Argue, Adjunct Professor of Water Engineering, Urban Water Resources Group, University of South Australia.
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LOCAL GOVERNMENT BUSINESS EXCELLENCE
Implementing The Australian Business Excellence Framework Eight Local Government Case Studies By Zoe Pattison
Background At the Australian Council of Local Government (ACLG) meeting in November 2008, the Prime Minister announced funding support for a Centre of Excellence to showcase innovation and best practice across local government and encourage adoption of innovative practices and solutions. One of the Australian Centre of Excellence for Local Government (ACELG) consortium partners, the UTS: Centre for Local Government is working in partnership with SAI Global (SAI) to review the use of the Australian Business Excellence Framework (BEF) within Australian local government. The ultimate aim of this project is to provide local government with a model which promotes excellence within the sector. The Local Government Business Excellence Network (LGBEN) is a national network of councils who are actively using the BEF, and are interested in building and strengthening its use in the Australian local government sector. A survey of LGBEN councils conducted in 2010 confirmed that the BEF provided a structured process for continuous improvement, a facilitator of better communication, a tool for team building and aligning the organisation to corporate priorities, a catalyst for finding financial savings, and a vehicle for providing access to best practice (ACELG, 2010). However, both LGBEN and SAI are interested in exploring ways that the BEF can be further enhanced and tailored to facilitate broader take up within Australian local government. This review includes the documentation of case studies to inform two significant national project initiatives: 1. Firstly, SAI have commenced a review of the BEF to occur later in 2011. 22 | Council Manager Sept-Oct 2011
hese case studies aim to canvass T the experience, knowledge and opinions of the local government sector to inform that review and tailoring of the BEF to meet local government’s changing needs for continuous improvement; 2. Secondly, ACELG is partnering SAI to develop a detailed implementation guide which will assist the local government sector by outlining the principles and associated practices of the updated BEF. Eight councils throughout Australia were selected. The case study councils are known for being progressive and innovative in their approach to continuous improvement, and they were selected in consultation with SAI and LGBEN. The selected councils represent a cross-section in terms of size, geographic and demographic profiles and include the following organisations: Council
CEO/General Manager
1. Bass Coast Shire Council (VIC)
Allan Bawden
2. City of Marion (SA)
Mark Searle
3. City of Melville (WA)
Shayne Silcox
4. City of Swan (WA)
Mike Foley
5. Hobart City Council (Tas) Nick Heath 6. Port Stephens Council (NSW)
Peter Gesling
7. Warringah Council (NSW)
Rik Hart
8. Yarra Ranges Council (VIC)
Glenn Patterson
The author of this report was Zoe Pattison, Business Excellence Coordinator for Port Stephens Council who was
seconded to the UTS: Centre for Local Government to prepare the case studies. Zoe visited each council and conducted interviews with key staff to obtain their opinions and experiences. Each council was asked a number of questions which included: • What were the drivers behind the decision to implement Business Excellence? • How have you implemented the Business Excellence Framework? What resources and training were required? • What have been the benefits of adopting the BEF? • What are the opportunities for improvement both in relation to the Framework itself and how it could be better utilised within the local government sector? • What were the lessons learnt? Each Council has approached implementation of the framework in a slightly different manner which in very broad terms can be described as follows: 1) Bass Coast Shire Council has developed a Financial Sustainability Framework. This comprehensive tool allows the organisation to identify and prioritise improvement initiatives for the future. The Financial Sustainability Framework is built into the annual planning process and incorporates the Business Excellence Principles. 2)The City of Marion has an improvement philosophy centred on culture, with leadership being the driver for change. The organisation has focused on building the capacity of the managers and people. In recent times the City of Marion has commenced a program to address gaps around its use of information and knowledge as well as process improvement.
The ultimate aim of this project is to provide local government with a model which promotes excellence within the sector.
3) At The City of Melville Business Excellence is one of the five strategic goals of the organisation. The organisation has created individual frameworks around the Categories of the BEF which provides the organisation with a solid approach to setting appropriate goals and ensuring accountability. 4) The City of Swan employs a very measured approach to using the BEF as a driver for the integrated planning process through the development of a Capability Plan. The Capability Plan has a three year focus and largely drives annual planning for the internal service providers. 5) Hobart City Council has a structured improvement program based on scheduled self assessments. The organisation couples the BEF with Quality Assurance, including Certification to ISO9001, to sustain gains made through the application of the Framework. 6) Port Stephens Council uses the approach of "One Council Working Together to do the Right Things the Best Way." The Business Operating System outlines how the organisation does business in relation to each of the categories of the BEF. In recent times its focus is on undertaking a Sustainability Review program aimed at delivering best value to our customers. 7) Warringah Council is focussed on delivering value and maintaining a strong financial position. The organisation has developed a business improvement strategy and uses a number of tools associated with Six Sigma to deliver on this goal. 8) Yarra Ranges Council is relatively new to Business Excellence, however is now using the Framework to build on previous improvement initiatives. The
organisation focus is on Identifying OFI’s and undertaking associated process improvement to address the gaps.
Summary of findings Each of the eight councils is facing a number of common challenges, such as: • State government reform agendas; • Growing community expectations on service standards; • Increasing levels of public scrutiny; • Technology improvements; • Skills shortages; • Rate capping and fiscal constraints; • Complex legislative environment; and • An overall mandate to achieve more with less. The participating councils understand that the Business Excellence Framework can be used to assess and improve any aspect of their organisation including and by no means limited to: • Leadership; • Strategy and planning; • People; • Information and knowledge; • Service delivery, product quality and bottom-line results. There was a collective understanding that: • The improvement journey for each organisation has not been smooth sailing. • A good BEF mentor assists councils to stay on track in difficult times. • Components of the Framework are ambiguous and it should not be used as a prescriptive list. Always ground yourself in the Principles. • Balancing the corporate good with any self interest that can show itself is a significant challenge. Business Excellence
does not in most cases produce short term transformational change.
Similarities and differences in approach
• Whilst these differences in the overall focus exist, there are a number of similarities in terms of implementing the Framework. In each of the case study councils the following were evident: • Genuine commitment from the CEO/ General Manager; • Reference to Business Excellence in the council’s Integrated Planning documents; • Completion of an organisation performance review against the BEF to determine strengths and opportunities for improvement; • Development of strategies to address the gaps; • Use of a number of continuous improvement tools and process improvement methodologies; and • A commitment to using Business Excellence as a long term focus based on universal principles. This said, a number of differences in implementation also exist. Within the case study councils there were variations in the following elements: Methods to undertake organisation performance reviews: The City of Melville undertakes regular assessments against its individual frameworks, and these assessments are facilitated by external consultants. In comparison the City of Hobart uses the Business Excellence Awards process and SAI to assess its organisation. The City of Swan uses a mixture Sept-Oct 2011 Council Manager | 23
LOCAL GOVERNMENT BUSINESS EXCELLENCE
of internal self assessments and externally facilitated Organisational Performance Reviews. Resources to deliver training: Port Stephens Council has employed an internal officer to develop and deliver Business Excellence related programs and associated training. Yarra Ranges complements its in-house learning and development program with an external facilitator employed to provide process improvement training. Interpreting the framework: The City of Marion uses a Five Element implementation model whilst still assessing itself against the seven categories. Hobart City Council has added an additional eighth category. The City of Melville has created its own individual implementation frameworks based on the seven Categories. Referencing the BEF in Integrated Planning documents: The City of Hobart has a model of its eight categories and associated initiatives clearly displayed in their two page pocket-sized plan. The City of Melville, one of its five organisational goals relates to Business Excellence with this clearly articulated to the community and staff. Process improvement methodology: Port Stephens Council uses the Plan-Do-Study-Act model.
Yarra Ranges uses a similar tool called DIAGNOSE. Warringah is moving towards Six Sigma. The City of Swan has a holistic approach to process management using a technical product called 4TQ to support its initiatives.
Next Steps These case studies highlight the benefits for local government in adopting the BEF in assisting them to aspire to excellence. The case studies also demonstrate its use as an organisation development tool which can foster better understanding of key strategic issues and harness the energies and efforts of all staff and managers in identifying and implementing improvements. ACELG will continue to work with SAI Global to review the BEF in order that it might more easily and effectively address issues of significance for local governments in Australia. In particular ACELG will continue to engage with interested councils in its participation in the upcoming review of the BEF, and will seek experiences and examples of good practice in the development of an implementation guide which will be made freely available for all councils.
For a full copy of the report visit www.acelg.org.au
Experts in Local Government recruitment
• • • • • •
Executive and middle management recruitment Performance management of senior staff Staff satisfaction surveys Organisational reviews Remuneration reports Counselling and other support services
24 | Council Manager Sept-Oct 2011
www.lgms.org.au • 02 9242 4142 • wps@lgsa.org.au
ASSET MANAGEMENT
Focusing on Innovation
to enhance asset management What do you do when you identify ways to improve asset management, but there is no software solution in place to cater for your needs? Maroondah City Council faced this dilemma and in response has delivered solutions that will benefit not only the Maroondah community, but those in other local government areas. Maroondah’s focus for its Asset Management System (AMS) implementation and development project is to improve business processes, provide enhanced management of Council’s community assets, and to subsequently deliver a more effective and efficient service to the community. Maroondah has focused on the implementation of innovative solutions, which maximise the organisation’s capital investment associated with the project. Council has invested significant time and effort in association with software providers to develop the integration of Maroondah’s AMS and its corporate Geographical Information System (GIS), IntraMaps. This technology now provides staff with the ability to utilise the GIS system to locate any of Maroondah’s community
assets (i.e. roads, buildings, drainage, parks etc) graphically, and to obtain summary information on the assets from the AMS (via the integration), without having to navigate through the AMS to obtain it. As the majority of Maroondah’s staff have been using the GIS system in some way, shape or form historically, staff are already familiar with its use, and as such, there was very minimal staff training required to facilitate access to the AMS data (such as inspections, work orders, valuations, child assets, etc). Further to the above, Maroondah is currently expanding the use of its GIS system (and the integration with the AMS) to facilitate advanced functionality for staff to use the GIS system in the field (via a live connection through the wireless network
to the Maroondah servers), on mobile computing devices, for the management of works relating to Council’s community assets. This is providing significant improvements to Maroondah’s work management capabilities, as field staff are able to manage all works in the field, without the need to regularly travel to the office. The ability to utilise GIS as a way of accessing AMS data, and to manage works relating to community assets, is considered best practice.
Delivering a corporate Asset Management System
Maroondah Council has historically managed its $1.2 billion community asset portfolio within excel spreadsheets, which created significant inefficiencies, particularly Sept-Oct 2011 Council Manager | 25
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in relation to data management and subsequent reporting. In 2004, Maroondah identified a need for a corporate integrated AMS to facilitate enhanced Total Life Cycle Asset Management (TLCAM) for its community asset portfolio. This position was strongly supported and encouraged by the Victorian Auditor General’s Office, who highlighted concerns for the security and accuracy of the data relating to Maroondah’s asset registers. Maroondah subsequently engaged consultants in 2005 to undertake a detailed needs analysis, to provide recommendations for the direction and resources required to achieve Maroondah’s goal for a corporate AMS. Between 2005 and 2007, Maroondah held a number of internal working group meetings, to discuss the potential business process improvements that could be achieved through the implementation and development of a corporate AMS. All of the internal working group representatives fully embraced the proposed implementation of a corporate AMS, and all identified the significant potential business process improvements for their respective areas of responsibility. It was also recognised that the business process improvements would provide the organisation with the ability to more effectively meet the community’s expectations. More specifically, enhanced TLCAM would translate into improvements to the condition and performance of Council’s community assets, and a subsequent improved level of asset service delivery for the community. In February 2008, Maroondah commenced its implementation of the corporate AMS. A significant amount of time and effort was committed to ensuring the currency, accuracy, and usability of the corporate asset registers, as well as mapping the location of fixed assets graphically in the organisation’s GIS system. Whilst the implementation and development is still ongoing, the AMS has already had significant positive impacts on the organisation and subsequently on the community.
Benefits Maroondah’s AMS implementation and development project is providing, and will 26 | Council Manager Sept-Oct 2011
continue to provide, significant benefits to the organisation and to the community. In particular, the use of the centralised corporate AMS has removed the need to maintain numerous different datasets across the organisation, and, in addition, has made reporting on the status of Maroondah’s community assets much more efficient. The use of the AMS, in conjunction with the sophisticated capabilities of Maroondah’s SMEC Pavement Management System (PMS), has enabled Maroondah to undertake more effective optimised renewal of its community assets, providing significant improvements to their respective condition, performance and subsequent longevity. This was confirmed in a recent SMEC benchmarking report, which compared the road management performance of 33 local government authorities around Australia. Maroondah City Council scored the highest for the overall average condition of its road network, and one of the lowest for the average expenditure per square kilometre of road surface. The use of the GIS functionality (i.e. integrated with the AMS) on mobile computers in the field, has also provided significant improvements to productivity, as staff are able to fully manage their work whilst in the field, without the need to travel back and forth to the office. Whilst the mobile computing capabilities are currently only used by a small portion of field staff, the productivity benefits are already significant. Hence, this will increase with further implementation to the remainder of the field staff crews. The sophisticated capabilities obtained from using the AMS, and the associated integration with GIS, in conjunction with the adoption of a 2.5% infrastructure levy introduced in 2001, provides Maroondah with the ability to undertake effective and efficient TLCAM, to address its ‘renewal gap’, and to ensure the provision of a high level of service to the community. Maroondah identified the need to have the corporate AMS and the GIS systems operating collaboratively, to facilitate maximum usability of the asset data and subsequently the maximum benefit to the organisation and community.
At the time, there was very little development being undertaken on the integration between an AMS and GIS systems, and hence Maroondah initiated partnerships with its AMS provider, Infor, and GIS provider, DMS to investigate opportunities. Both providers were very receptive, and were able to foresee the significant benefits for their clients, and for their respective businesses. In addition, the work that Maroondah initiated, would subsequently be able to be embraced by other LG organisations. In September 2010, Maroondah was invited to present on its AMS project, and the associated innovations, at the Infor Public Sector International user conference in New Zealand. The presentation was extremely well received, and a number of LG organisations within Australia and in New Zealand are now following Maroondah’s path, and are initiating similar AMS and GIS development projects. Over the past two years, Maroondah has provided a number of demonstrations and presentations to various local government organisations, including Frankston, Whitehorse, Darebin, Kingston, and Swan (WA), highlighting the innovative solutions that Maroondah has implemented. Many of these other organisations are monitoring the progress of Maroondah’s AMS implementation and development project very closely, and will more than likely endeavour to adopt similar innovations in the future. Maroondah attends cyclical AMS user group meetings, and provides regular updates to other LG organisations on the progress of its AMS implementation and development project.
Whole of Life Cycle Costs Maroondah’s AMS implementation and development project has provided the organisation with the ability to manage all data relating to its community asset portfolio effectively and efficiently, and as a result, the organisation has been able to significantly improve the accuracy, currency and quality of the data within the central corporate AMS.
The improved data, and the associated improved data management practices, has subsequently facilitated significant improvements to Maroondah’s TLCAM capabilities. In particular, Maroondah is able to quickly access current and accurate asset data, to permit optimised asset decision making. This, coupled with the works management capabilities associated with Maroondah’s AMS, provides the framework for significant improvements to works management practices, which translates into significant time and cost savings for the organisation and the community. Hence, the whole of life cycle costs associated with Maroondah’s community asset portfolio is minimised. The long-term benefits of the above includes enhanced longevity for Maroondah’s community asset portfolio, and associated improvements to the provision of services associated with the assets.
Sustainability Through enhanced TLCAM practices, Maroondah is able to undertake optimised renewal of its community asset portfolio, provide enhanced longevity, and minimise the ongoing life cycle costs. Maroondah has already observed, over time, the benefits of undertaking optimised renewal associated with its road infrastructure, with the network in an overall very good condition, requiring minimal expenditure to maintain it to that condition. This has been achieved from the utilisation of a sophisticated Pavement Management System (SMEC), which assists with optimised decision making, and through the introduction of the 2.5% infrastructure levy in 2001 (to assist in funding Maroondah’s renewal gap). The levy forms part of Maroondah’s Long Term Financial Plan, and assists to ensure the organisation’s long term sustainability. In addition, Maroondah’s cyclical asset condition assessment program provides the organisation with current and accurate data on the overall condition and performance of its community asset portfolio, which facilitates detailed analysis by the organisation’s asset management team of the assets’ useful lives.
Maroondah has used this data on a number of occasions to justify significant increases to asset useful lives, which has been endorsed by the Victorian Auditor General’s Office as best practice. This has also resulted in improved accuracy of reporting associated with the financial position of the community’s asset portfolio within the organisation’s annual reports.
Conclusion What do you do when you identify ways to improve asset management, but there is no software solution in place to cater for your needs? Maroondah City Council faced this dilemma and has created partnerships to deliver solutions that will benefit not only the Maroondah community, but those in other local government areas. The development and implementation of the Asset Management System (AMS) project means Council can more effectively meet the Maroondah community’s expectations in relation to the management of its $1.2 billion asset portfolio. After identifying the benefits which could be achieved by linking Council’s most accessed databases — AMS and GIS — a review of the programming capabilities commenced. Working with software providers, Council has led the way by creating new technology which will significantly improve the efficiency
and effectiveness of day-to-day asset management. The implementation of the project is ongoing, but to date Council has undertaken a refinement of corporate asset registers; customisation of the AMS to suit Council’s business processes; integration with the corporate GIS system; and development of mobile computing capabilities. In addition, Council has interfaced the AMS with a sophisticated report writing package allowing more effective and efficient financial reporting, in accordance with the Victorian Auditor General’s requirements. The integration between the AMS and GIS programs means Council officers no longer need to navigate through the AMS to view and update asset information. Instead officers will have a central access point to information including images, lease agreements, contracts, warranties, maintenance logs, works orders and property alerts. This has provided significant benefits to the organisation. Maroondah’s AMS implementation and development project has resulted in the provision of enhanced Total Life Cycle Asset Management, which has led to improvements in the condition and performance of Council’s community assets. Ultimately, investing the time and resources into improving asset management service delivery is about ensuring our assets can best provide for the community’s future. Article contributed by Maroondah City Council. Sept-Oct 2011 Council Manager | 27
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Asset Management System Implementation Getting the structure and data right Often one of the most underestimated challenges facing any Asset Management System implementation is the correct defining of required data structures and sourcing and cleansing of data. The following is a summary of a paper presented at the recent IPWEA conference by Anthony Monaghan, Manager Asset Management & Maintenance at Wyndham City Council. As the fastest growing municipality in Victoria and the fourth fastest in Australia, adding some 10,000 residents per year, the task facing Wyndham City, in managing the data and processes necessary to cope with the increase in assets; roads, parks, drainage and buildings which are required to support that growth is, at times, an overwhelming one. In 2009, Wyndham City signed with InfoMaster to implement its asset management system — AssetMaster. One of the requirements of the contract was full integration with Council’s existing financial, customer relationship management and geographical information systems. Outlined below are a number of earlier identified truisms, that upon reflection underpinned, to some extent, the success of this project, as well and some key project learning’s around data and data cleansing that such a project can require, when presented with the competing priorities of trying to structure the asset information, clean the data, and implement a fully operational and integrated core system while the asset base continues to grow at a phenomenal rate. Early on in the project Wyndham City identified several truisms that help set the project direction and ultimately contributed to their success: • An acknowledgement that problems with existing data are often underestimated, and not just confined to poor quality; but also include: – data duplication across multiple systems, often created from different sources 28 | Council Manager Sept-Oct 2011
– a lack of synchronisation between data sets resulting in incongruent information – absence of an instilled systematic data management framework increases the likelihood of errors • To have reliable data that enables staff to make informed decisions requires a single source of data that is of high quality and well managed. • The first step of any asset management system implementation should be to gain an understanding of how the software works so as to establish the most appropriate data structure for asset classes.
Project Learnings Do not underestimate the time needed to clean data. The more data you have the greater likelihood it is either flawed or there are pockets of information which do not meet the rules you have developed. There are many tools which can be used to assist with data cleansing, but in the end, time and effort are the keys. Wherever possible use the software to ensure compliance with data structure and integrity; text only fields are essentially “garbage in — garbage out‟, use lookup tables wherever possible. Identify the best known sources for existing data (Finance, GIS, etc) Conduct workshops to gain common agreement among staff of aspects ranging from asset hierarchy to asset data sets to business processes, this will ensure much
greater understanding of asset management across the Council. Put in place rules to enforce required data consistency of any new data capture and entry, this will ensure the relevance of the documented processes in the previous step. When Identifying data sets for an asset make sure you have a real use or need for the data otherwise you will find the data quickly becoming redundant. View the project as an iterative process; develop your system processes and rules in your workshops; revisit and review your decisions and do not be afraid to “not get it right the first time. The numerous workshops to gain common agreement among staff of aspects ranging from asset hierarchy to asset data sets to business processes have contributed to a much greater understanding of asset management across the Council. Wyndham City have successfully implemented AssetMaster. One area of particular complexity was the Roads implementation, which consisted of around 7,500 road segments, totalling some 40,000 plus assets. Queensland Transport of Main Roads is an example of another high volume customer of InfoMaster, using AssetMaster across a state wide deployment, controlling aspects of detailed infrastructure data.
Andrew Szekeras & Andrew Lutterbeck of InfoMaster can be contacted on (02) 9399 6300 or andrew.szekeras@infomaster.com.au or andrew.lutterbeck@infomaster.com.au.
A S S E T M A S T E R T I C K S A L L Y O U R S O L U T I O N D E L I V E RY R E Q U I R E M E N T S
AssetMaster delivers the power of true Asset Infrastructure Management‌ More than just an Asset Register or reporting front end, AssetMaster provides users with a true Enterprise application experience. Data
Asset Registers built on true Life Cycle Asset Management principals Intelligent Asset identification from One central repository GUI Driven Import and Export facilities Unlimited Asset Class Creation Standard Template Selections Full Asset Componentisation relationship linking capability Flexibility to add and record Asset attribute details unique to each environment
Integration
Proven Integration to Third Party Products, providing a single interface user experience Seamless integration to the corporate systems through one interface (Property, GIS, CRM, EDMS, Financials, SCADA etc.) Managed Workflow process integration. AssetMaster’s Mobile workforce solution provides remote seamless integration into the AssetMaster modules and processes, removing reliance on 3rd party products
Financial Reporting and Planning
Best Practice Reporting and Planning (NAMS, AAS, IFRS, IIM Building Regulations) AssetMaster removes reliance on 3rd party reporting tools Provides flexible data output options to MS products Satisfies legislative accounting requirements (AAS, IFRS) Fair Value Depreciation and Future Driven Depreciation Calculations Service Level Prediction and Optimisation AMP reporting requirements based on NAMS guidelines Life Cycle Planning -Cash flow and Annuities Prediction of Building Regulations through true Componentisation of Asset Infrastructure
Implementation and Services
Professional Implementation methodologies, Proven Results, Successful Knowledge Transfer Professional Implementation Services by industry specialists Prince 2 certified, CompTIA trained and accredited professionals
FO R F UR TH E R IN FO RM A TI ON O R TO A RR AN G E A DEM ON S TR A TI ON P L EA S E CO N TA CT U S O N:
www.infomaster.com.au NSW Suite 903, Level 9 , 100 William Street Sydney NSW, 2000 Tel: +61 2 9339 6318
QLD Suite 6, 36 Agnes Street Fortitude Valley QLD, 4006 Tel: +61 7 3250 6100
VIC Level 8, 616 St Kilda Road Melbourne VIC, 3004 Tel: +61 3 9520 7860
NZ Level 27, 188 Quay Street Auckland 1010 Tel: +64 9 363 2990
ASSET MANAGEMENT
Pursuing sustainability through improved asset management planning The implementation of Asset Management Plans has given Kangaroo Island Council a competitive edge when applying for grants and helped the council negotiate its financial sustainability issues.
Kangaroo Island Council is a small council with significant sustainability issues driven by a unique set of challenges: • Large land area — one-third being non-rateable National Park; 1250km of unsealed roads. • Low resident rateable population. • Very high tourist visitor numbers — two-thirds arriving by sea/road. • Wetter climate than much of mainland South Australia. All these challenges impact on all aspects of council operation but no more so than on its road network. The Independent Inquiry into the Sustainability of Councils in Australia in 2005 identified that Kangaroo Island Council was unsustainable. In response the Council, in partnership with the LGA, prepared a document titled the ‘KI Study’, which looked at ways Council could resolve the sustainability issues. Within 11 recommendations made, the key three recommendations were to: • Create in-house efficiencies ensuring legislative compliance. • Obtain another sustainable source of income. • Develop accurate asset management plans (AMPs), enabling development of effective long-term financial plans. To implement the last point, Kangaroo Island Council utilised external service providers to help it construct outline AMPs and undertake the detailed analysis of the data collected internally that determined work programs. 30 | Council Manager Sept-Oct 2011
Council’s own staff collected the data and verified work programs — helping them develop ownership of the programs. Council also consulted experts in their respective fields, such as the SA Department of Transport Energy and Infrastructure (DTEI) to verify the approaches and service levels to ensure they were developed consistently. As a result, the Plans are realistic, validated and considered an integral component of Council business. Kangaroo Island Council precisely understands its financial situation and has been able to confidently discuss a range of potential financial solutions with the State Government. It has also afforded State Government the confidence that investment in Kangaroo Island infrastructure will be managed efficiently and effectively.
Solving the sustainability issues
The process undertaken to examine Kangaroo Island Council’s sustainability issues commenced with Council taking on the challenge and commissioning the KI Study which highlighted the need for significant reform in the way KI Council carried out its operations. The process commenced with “getting our house in order” which included implementing organisational efficiencies and addressing various legislative compliance matters. Council initiated this by commissioning a series of business department reviews aimed at identifying those areas within the business that
needed to change in order that they could meet the needs of the business. The recommendations of these reviews have been integrated into the business with a series of significant business structure and process changes that have started to transform the effectiveness and efficiency in daily operations. Part of this process has been to identify the key skills needed and then get these skills into the business by identifying staff members with potential and then giving them the skills/exposure with aggressive training/ development coupled with a performance management process to monitor progress. In addition, Council has either recruited consultants for short-term, high-impact assignments or specifically recruited for permanent roles. Developing accurate Asset Management Plans (AMPs) has allowed Council to develop a more meaningful Long Term Financial Plan (LTFP), and with Council precisely understanding its financial situation, it has been able to confidently discuss a range of potential financial solutions with the State Government. Some of the outcomes of this process are: • State Government is working with Council and the State Economic Development Board to identify potential solutions. • Success in obtaining $2.6 million through the Infrastructure Employment Program. • Kangaroo Island Community has a far greater understanding of the financial challenges facing Council and has been actively involved through both the
Council employees also have a far greater understanding of the needs of the business and are actively contributing to the continued improvement in business processes. American River boat ramp upgrade on Kangaroo Island
Strategic Planning process and through surveys and community forums. The most positive benefit of this process is that Council and the Community have a full understanding of the financial situation facing Council and what levels of additional revenue Council needs to generate to be sustainable in the long term. The process has also clearly demonstrated that Council’s issues are not those related to inappropriate management but more simply down to a limited capability to generate revenue from our small number of rate-payers in conjunction with a much larger infrastructure base than the average South Australian Council. Add to this the unique challenges facing Kangaroo Island and it is no surprise that Council is not considered financially sustainable. The implementation of AMPs has enabled this to be realized using “science” rather than perception and has allowed both Elected Members and Council staff to prioritise limited funds in the most effective manner. Importantly, Council has been able to discuss solutions with State and Federal Governments from a position of strength knowing that the data is accurate, validated and realistic. Council employees also have a far greater understanding of the needs of the business and are actively contributing to the continued improvement in business processes.
Transferability to other councils The process is totally transferrable and Kangaroo Island Council is playing an active
role in encouraging other councils in its Region (Southern & Hills LGA) to take on the challenge of AMPs. There have been many lessons, however the two main lessons would probably be: • Learn from others — there is no need to reinvent the wheel during this process. This has all been done before and across a wide range of different businesses so there is much that can be learnt from other’s experiences — visit those that have implemented successfully, talk to their service providers and learn. Coopting other authorities who operate in the same area of expertise such as DTEI, Tonkins, Elected Members, Auditors etc. In Kangaroo Island Council’s case the Office of State and Local Government was particularly supportive and provided much-needed guidance to Council’s Finance team during AMP development. The benefits of the relationships developed during this process have impacted far above the operational level — Council’s Senior Management Team now has the ability to discuss its plans and bring the expertise of these groups to bear as it formulates key strategic solutions for Council business. • Do not try to simply outsource it all — the structure of the Plans themselves is fairly standard but the power of the plans lie in the specific detail within. Concentrate your resource here and outsource what else you can. These challenges should definitely be considered as opportunities not road blocks
and working through these by concentrating on the deliverables and the overall objectives is the way that you will succeed.
Sustainable infrastructure management
Kangaroo Island Council’s aim is to renew/ renovate/construct infrastructure, driven by priority that is aimed at producing minimal, ongoing maintenance cost through simple design using quality materials. A specific infrastructure program driven by Council’s Community Camping and Day Visitor Site Strategy has involved the upgrade of approximately 20 sites across Kangaroo Island using these principles. Another specific example of using whole-of-life cost and, as a result, wholeof-life income is the management of sewerage infrastructure through Council’s Community Wastewater Management Schemes (CWMS). Council has determined the whole of life cost, over 50 years, of the schemes across Kangaroo Island and has introduced an annual pricing structure that enables Council to maintain and replace the infrastructure over the whole of life. Council is serious about managing its infrastructure in a sustainable manner and, where possible, has introduced sustainable pricing. Airport and Waste Management are two other areas where significant changes have been made to the council’s operating models to enable the assets to be managed sustainably for the long term. Sept-Oct 2011 Council Manager | 31
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At the time of writing, Council has not yet been able to manage its roads in the same way — the combination of large land area, length and composition of roads, high tourist numbers and higher than average rainfall all limit Council’s ability to deliver sustainable management given the level of revenue it generates. Council’s only solution to this issue — without significant service reductions to its Community — is to identify an additional revenue source to bridge the gap that exists between the need and the current capability to deliver. In the State Budget for 2011–12, The Minister for Transport, Hon. Patrick Conlon MP made the announcement that the Department would be setting aside $2M annually for investment in Kangaroo Island roads on an on-going basis until such time as Council is able to manage their road infrastructure sustainably. This will provide the ability to start upgrading the rural road network to a level that is fit for purpose as well as allow Council to use its existing funding to increase road and vegetation maintenance to maintain roads to an appropriate standard for their traffic type and volumes. In addition to this the formation of a specific body to investigate infrastructure needs of the Island to drive growth in both the tourism and agriculture sectors has been announced with an anticipated budget of $25M over 5 years.
Pursuing financial sustainability The development of accurate, validated and realistic Asset Management Plans together with the resulting long term financial plan has provided Council with an understanding of the actual sustainability challenges of the organisation and the scope of the asset management requirements. The accuracy of the plans has enabled Council to hold meaningful discussions with the State and Federal 32 | Council Manager Sept-Oct 2011
Government on various strategies to develop additional revenue streams and enable Council to bridge the gap between programmed asset management / renewal and its current unsustainable situation. A key component around being able to justify these dialogues with Government has been the need to ensure the organisation is as efficient as possible while continuing to meet its legislative requirements. The continued drive for efficiency has ensured the organisation has been able to attain three consecutive years of Unqualified Audit — these reports have been vital to giving State / Federal Government confidence in Council’s capability to manage its existing business as well as confidence in Council’s capability to take on externally funded infrastructure projects that can help it move towards sustainability. The next phase of the financial and asset management planning process is the collaboration with neighbouring councils to develop strategic alliances across the wide range of asset and financial management services required for effective operation. This has commenced with simple resource sharing and is due to expand in 2011/12 to the development of ongoing asset management plans with coordinated management and works teams delivering prioritised services in a cost effective, efficient manner.
…the implementation of Asset Management Plans has given Kangaroo Island Council a competitive edge… Summary For an identified unsustainable Council, the implementation of Asset Management Plans (AMPs) has given Kangaroo Island Council a competitive edge when applying for grant funding assistance and holding discussions with State Government around strategies to address its sustainability issues. Given the unique circumstances on Kangaroo Island, Council will not be sustainable without sourcing an additional, sustainable source of revenue to support its asset maintenance requirements. Council’s Asset Management Plans have delivered “science” to its prioritisation and decision-making processes at operational and Council level, and have been a significant factor in understanding Council’s financial requirements and driving a meaningful longterm financial planning process that can validate on an ongoing basis Council’s actual spend/revenue.
Article contributed by Kangaroo Island Council. For more information about the council visit www.kangarooisland. sa.gov.au.
LOCAL GOVERNMENT & PUBLIC SECTOR Building Maintenance & Management Conference
Tuesday 29 & Wednesday 30 November 2011 | The Sebel Albert Park, Melbourne www.BuildingMaintenanceConference.com.au
CONFERENCE ANNOUNCEMENT AND INITIAL CALL FOR PAPERS ABOUT THE CONFERENCE: This practical conference will cover all the key issues relating to the maintenance and management of Local Government and Public Sector Buildings. Local Government building portfolios are invariably a mix of small to medium size buildings at multiple sites. Some facilities are complex in regard to the requirements of users and building structures such as libraries or swimming pools. Public Sector building portfolios are similar, but also tend to at times include large CBD office complexes and facilities of national or heritage significance such as Parliament House, Canberra or Flinders Street Railway Station. The conference will have two speaking streams to permit wide coverage of different building types and uses, as well as general issues that will be addressed. The aim of this conference is to provide practical guidance to all delegates that can be immediately used. WHO SHOULD ATTEND: • Building Maintenance Managers and Officers • Facility Managers • Building Asset Managers and Owners • Engineers, Building Surveyors and Consultants CALL FOR PAPERS: Individuals interested in speaking at the conference are invited to submit Synopses of approximately 100-150 words to be submitted by 12 July 2011 to: Scott Matthews – Conference Convenor, PO BOX 84, Hampton Vic 3188 Email: scott.matthews@halledit.com.au REGISTER INTEREST: To register in the conference to receive the full speaking program when available please register on-line at www.BuildingMaintenanceConference.com.au Or contact Denise McQueen – Conference and Event Manager Phone: +61 3 8534 5021 Fax: +61 3 8534 5121 Email: denise.mcqueen@halledit.com.au Our conference venue will have specially discounted rates available for all conference participants. These and other details will be added to the conference website. SPONSORSHIP & EXHIBITION: Contact Scott Matthews – Conference Convenor Phone: +61 3 8534 5004 Fax: +61 3 8534 5104 Email: scott.matthews@halledit.com.au SILVER SPONSOR
PLATINUM SPONSOR
CONFERENCE TOPICS: As a guide topics and papers may be in the following areas, however please submit any topic that you believe is relevant to the conference: Buildings Management › Compliance Management and Monitoring (BCA etc) › Disaster Planning & Recovery Planning › Environmental Management › Asset Management (Life Cycle) › Construction & Defects Period Management › Project Management Building Systems › HVAC › Essential Safety Measures › Fire Systems › Security Systems › Green Buildings › Building Management Systems › Asset Management Systems › Audio Visual Systems Maintenance Delivery & Management › Service Partnering › Models of Service Delivery (inc out-sourcing models) › Tendering for Building Maintenance Services › Value Creation › Probity Arrangements › Client Management Arrangements › Private Sector Funding (PPP’s; BOOT Schemes) › Risk Management › Subcontractor Management › Occupational Health & Safety of Occupants Design, Management & Operation of Specific Building Types (Best Practice) › Libraries › Swimming Pools › Airports › Coastal Buildings › Sports Pavilions › Council Chambers › Performance Spaces – Art Galleries Retrofitting Energy Efficiency Rectifying Building Defects
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ORGANISED BY HALLMARK CONFERENCES + EVENTS www.halledit.com.au
A new generation of card printers for multiple efficiencies Plastic cards are a ubiquitous part of life, and local governments can make the most of the new technology to achieve better security, enhanced community services and improved administrative efficiency. PPC, supplier of plastic card solutions, offers local governments advice and support in using the latest technology to undertake their duty of care and to streamline a range of functions. PPC’s Sales Director, Greg Ducquet, said many local councils don’t realise the full potential of plastic card printers. “Plastic card printers are no longer just about staff ID cards,” he said. “The smart card technology opens up a whole range of possibilities from library cards to key-tags with barcodes for enhanced asset management of fleet vehicles, workshop equipment and chemicals.” “Councils have a duty of care to ensure any staff interacting with the public or using specialised equipment have secure ID. PPC printers are part of secure solutions that can also incorporate different levels of security access for restricted areas. And new ‘Holokote’ technology
34 | Council Manager Sept-Oct 2011
(integral transparent watermarking) gives an even higher level of protection against fraudulent cards.” The cost of card printers has reduced over recent years with the development of technology and it is now very affordable for local governments to have printers at a number of remote locations as well as in the main council offices. That means swimming pools can issue membership cards and works depots can manage their own security. Because the printers interact with council databases through a Windows interface, it is simple for staff to print cards without technical training. The ability to encode and update information on cards opens up new possibilities for rate payer cards and even for creative community relations campaigns that offer discounts or “points” systems for entry to local attractions.
New generation printers In addition to offering the new smart card technology, the latest card printers are faster and more durable than ever. PPC’s ID3100 is a good example of the new generation of printers. It is a perfect solution for all ID applications and allows users to incorporate a standardised or customised Holokote plus photos imported from a database or compatible digital camera. The durable ID3100 provides the ultimate efficiency for highervolume environments with its faster running speeds and lower operating costs. It also features an unbeatable three-year warranty, including the print head. Like all PPC printers, it allows users to produce their own customised designs on a range of coloured stock cards, including gold and silver. Greg Ducquet said that although plastic cards are a relatively small item on the local government shopping list, they can have a disproportionate effect on efficiency. “Card technology has really come into its own and the interface with existing organisational software systems makes many more things possible,” he said. “We are here to help local governments capture the efficiencies and security improvements that can be achieved for a very modest investment.”
Article contributed by PPC Card Solutions. For more details from PPC please phone 1300 651 277 or email sales@ppc.com.au.
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Sept-Oct 2011 Council Manager | 35
MANAGEMENT SYSTEMS
Central Darwin
Darwin strives for improved financial performance Darwin City Council has implemented a comprehensive financial model and array of other initiatives that have improved the organisation’s financial sustainability. DARWIN CITY COUNCIL is committed to providing effective, open and responsible governance through the management of Council’s affairs based on a comprehensive financial strategy, effective risk management practices, and applying a total asset management approach to all council assets for the benefit of Darwin’s community. Some of the initiatives that have been introduced are: • The identification of appropriate financially sustainable key performance indicators and the implementation of a comprehensive long-term financial model; • Identification of a number of areas of inconsistency which led to changes in the rating structure along with development of a social and economic impact statement on the effects of the rating strategy; • Development of Investments and Borrowing Policies in accordance with industry best practice and legislative requirements. In particular, the assessment of risk associated with investments within local government; • The implementation of Control Self Assessments that greatly reduced the requirement and associated expense of recruiting internal audit expertise from outside the organisation. 36 | Council Manager Sept-Oct 2011
Key financial initiatives • Financial Sustainability Review Council recently undertook a review of its financial sustainability. Conducted by Access Economics, the review has led to Council identifying appropriate financially sustainable key performance indicators and the implementation of a comprehensive long-term financial model. • Rating Review Council engaged Access Economics to undertake a review of its rating strategy. The review identified a number of areas of inconsistency which has led to changes in the rating structure along with development of a social and economic impact statement on the effects of the rating strategy. Council currently uses unimproved capital land values for rating and has committed to investigating the possibility of using improved capital land values in the future as a result of this review. • Policy Development Policies relating to the Investments and Borrowing have been developed over the last 12 months in line with industry best practice and legislative requirements. In particular, the assessment of risk associated with investments within local government
has greatly changed as a result of the global financial crisis and as a result, the policy now contains clear controls around the assessment of risk and acceptable investment practices. • Control Self Assessment Council has implemented a control self-assessment program as part of its internal audit program. This program covers all major finance functions and is conducted within existing staff resources. The program is about to be rolled out across the organisation. This has greatly reduced the requirement and associated expense of recruiting internal audit expertise from outside the organisation and helps to up-skill Council employees in this area. Darwin City Council’s Ten Year Financial Plan: • Will achieve long term financial sustainability; • Is based on a robust methodology that recognises financial pressures and risks; • Is intrinsically linked to Council’s Asset Management Plan (by projecting expenditure for future levels of operating, maintenance, depreciation, disposal and renewal costs). • Assesses Current financial performance and position; and • Has the ability to manage unexpected financial requirements and financial risks over the long term.
Transferability to other councils The approaches used by Darwin City Council when completing these initiatives will be available to fellow local government councils upon request plus all prior reports presented to Council and subsequent endorsement of recommendations are publicly available via Darwin City Council’s website — www.darwin.nt.gov.au. In terms of ensuring sound governance and financial responsibility it was crucial for Darwin City Council to undertake these reviews. Based on recent State Sustainability Studies it has been found that local government councils are now facing the renewal of assets that were constructed 30–50 years ago. In addition to this, the projected levels of annual renewal over the next 15 years are almost three times the current level and expenditure on new assets exceeds renewal expenditure. These figures don’t even take into account the current level of infrastructure repair required across Australia due to recent disaster events.
It is local government’s responsibility to ensure long term financial sustainability without unduly burdening our ratepayers with excessive increases. This issue was recognised by former Prime Minister Rudd in 2008. The Prime Minister stated at the Australian Council of Local Government meeting “We must improve asset management and financial management” and advised “Councils that plan and manage their assets effectively are councils that can deliver value for money to their communities”. The independent review of Darwin City Council’s Financial Sustainability provided the following results: • Darwin City Council was at a leading level in Australian local government in its asset management accountability and direction; • Only moderate improvements were identified in relation to our asset lifecycle management; • Darwin City Council is in a financially sustainable position; • Darwin City Council had a relatively low risk operation in terms of financial pressures; • Only minor improvements were identified in regards to financial management processes; and • Minor improvements were needed for Council’s long term financial forecasting. The purposes of implementing a program of Control Self Assessment is to monitor whether the key internal controls within a function, such as Accounts Payable, are operating as intended and on a consistent basis. A review of the process has been undertaken by an independent accounting firm and found to be robust. Based on this quality assurance process, no discrepancies were found and the Internal Audit Committee were satisfied to rely upon the key findings identified by staff. In regards to the Rating Review, a range of considerations were taken into account when designing the optimal architecture of the Council’s rating system; equity, efficiency, simplicity and practicality being among the most important. The review by Access Economics found that Council only needed to consider minor changes to its rating system to better assess ratepayers’ capacity to pay. Article contributed by Darwin City Council. For more information about the council visit www.darwin.nt.gov.au.
Local Government Management Solutions Local Government Management Solutions (LGMS) are the experts in Local Government recruitment providing a dedicated and costeffective service to NSW councils. LGMS understands that recruitment can be difficult for councils, and ensures that the right talent is sourced for their clients. As industry-leading experts in Local Government recruitment and human resources services, LGMS can work with your senior management team to attract, engage and manage the right people.
LGMS offers a range of human resource and employment services including executive and middle management recruitment, performance management, remuneration reports, climate surveys, organisational reviews, leadership development and coaching, counseling and other support services. LGMS has a successful track record in executive recruitment for NSW councils and has managed 50 senior recruitment positions since January 2010.
The LGMS team’s specialist knowledge is valued by its members as doing more than simply referring candidates. LGMS provides the insight and support its clients need to engage the right people, monitor and manage their progress and keep up with industry knowledge. To speak to a consultant, please contact Mark Anderson, Manager, Local Government Management Solutions on (02) 9242 4182 or at mark.anderson@lgsa.org.au Sept-Oct 2011 Council Manager | 37
RISK MANAGEMENT
10
Strategies to keep Risk Management alive
After developing a formal enterprise risk management framework, one of the ongoing challenges is to keep your risk management program up-to-date. Tony Harb and Mitchell Morley, risk management, audit and governance specialists from InConsult, provide a number of strategies to help keep risk management alive. JUST LIKE EVERY OTHER management system, risk management requires ongoing attention at all levels of the organisation. AS/NZS ISO 31000:2009 Risk management — Principles and guidelines certainly provides guidance on ‘what’ organisations should do with respect to monitoring, review and continual improvement, but leaves it up to each organisation to determine ‘how’. So, what do leading organisations do to keep their risk management framework alive?
1 Get sufficient resources
Risk management will require a “minimum” level of activity to keep the framework functioning well. Therefore ensuring the organisation is adequately resourced is essential. Many organisations have one, multitasked risk manager who also undertakes a range of other activities such as insurance claims, quality, compliance or business improvement. These activities all compete with risk management. Two strategies to help “resource up” risk management are to create ‘risk liaison’ roles within business units and, where available, utilise internal auditors to assist in some initiatives like risk workshops and training. Risk management and audit can play ‘tag team’ by aligning some of their activities.
2 Set clear responsibilities
Risk management is only as effective as its weakest link. Therefore, risk management responsibilities should be clearly documented in the organisation’s 38 | Council Manager Sept-Oct 2011
Risk Management (RM) Policy and RM Plan. Ensure the RM Policy and RM Plan are clearly communicated to risk owners.
3 Regular review of risk registers
Risk managers are not solely responsible for managing risk. Ultimately risk owners are responsible for ensuring risks are identified, evaluated and controls or treatment plans are in place. ISO 31000 outlines 11 important principles of effective risk management. One principle states “Risk management is based on the best available information” and another “Risk management is dynamic, iterative and responsive to change”. Therefore a regular review of risk registers and incidents is necessary. These reviews should be conducted on an ongoing basis or as deemed ‘necessary’ by the risk owners particularly after an incident. At minimum, we suggest a formal review no less than twice per year. Logistically, we recommend risk managers conduct one-to-one risk register review sessions with one or two risk owners per month, rather than having to meet all 25 risk owners in the one month!
change context 4 Continually of risk assessments
Risks arise from many sources and can have many and multiple consequences. ISO 31000 recommends periodically reviewing whether the risk management framework is still appropriate, given the organisations’ external and internal context. It is critical that risk profiles be reviewed and enhanced continually with a different context or angle.
Most organisations on a limited budget start with risks that could impact objectives, and then move to process level risks, regulatory risks, stakeholder risks and so on.
risk owners in other 5 Involve department risk workshops
Risk management provides opportunities for organisations to break down departmental communication and process silos within an organisation. We encourage supporting departments such as finance and IT to attend risk workshops of other departments to help them gain a deeper understanding of risks and the importance of financial and system controls in managing those risks.
6
Establishing a Risk Management and/or Audit Committee
Establishing a Risk and/or Audit Committee with independent experts is another way of helping to keep risk management alive. In most organisations, these committees meet from 4 to 6 times per annum.
7 Quarterly newsletter
Risk management practices need to remain “front to mind” not “out of sight, out of mind”! An effective way to maintain a strong risk and governance culture is to publish a quarterly newsletter and send it to all staff. This is an excellent way to update staff on new compliance requirements, potential issues, emerging risks or perhaps a friendly reminder for risk owners to update their risk register. Alternatively, you can incorporate a risk, audit and governance section in a corporate newsletter.
completion dates 8 Track of key activities and report to Audit Committee
Risk management is all about getting things done. For example, doing the risk assessment, completing the treatment plan and investigating the incident. ISO 31000 recommends organisations measure progress against, and deviation from, the risk management plan. Risk managers should report on risks, progress with the risk management plan and how well the risk management policy is being followed. Failure to undertake these activities could result in risks not been adequately managed and exposure to risk events outside the organisation’s risk appetite. Effective monitoring of tasks (both over-due, completed or upcoming) is critical for keeping risk management alive. This is where risk management technology can really add value.
9 Pursue continual improvement
In line with ISO 31000, risk managers should be asking how the risk management framework, policy and plan can be further improved. It is therefore critical that risk managers involve risk owners in continual improvement and refinement of the risk management framework. Risk managers should implement formal feedback mechanisms which could include surveys, questionaries and one-to-one meetings. Attending conferences, extensive reading and networking with other risk managers both within your industry and outside your industry enables risk managers to get new ideas and apply them.
10 Independent review
ISO 31000 recommends a periodic review of the effectiveness of the risk management framework. Ideally the
review should be conducted by a person independent of the framework and should not just be a simple compliance review against the existing framework, but also a benchmark against other organisations and various risk management maturity models.
Bottom line Risk management is not a one-off activity. It is a management system that requires ongoing monitoring, review and ‘tweaking’ to ensure risk management is part of the organisation’s DNA.
Tony Harb & Mitchell Morley can be contacted on 02 9241 1344 or tonyh@inconsult.com.au
Singleton’s new Visitor Information Centre In September 2010 Singleton Council opened their new Visitor Information and Enterprise Centre situated in Townhead Park. The centre has been specifically designed to showcase Singleton, featuring produce and handcrafts from the Hunter region. The highly trained staff offer community and visitor information and service enquiries from information on local attractions through to booking accommodation and tours. The Singleton Visitor Information Centre required two promotional points with in the new Centre. In order to fit in with the clean lines of the interior and the uncluttered look Milestone Solutions was asked to provide a solution to promote Xstrata Coal, a major financial contributor to the Visitor Information and Enterprise Centre construction and a solution to advertise the region and events. A large 42” LCD screen was placed in a prominent position at the end of the
room to promote the region, advertise products displayed in the centre as well as highlight local community events and Hunter Valley Concerts. In the future some airtime will be allocated for advertisements. The content for the screen is scheduled and controlled with Milestone software loaded onto a media player. The management software allows for the content consisting of various formats such as PowerPoint, movies and photos to be scheduled to play at various times throughout the day. The management software can also generate reports on how many times a particular clip is shown. The second solution provided is the Gallery Kiosk for Xstrata Coal. The sleek design and large screen invites you to
make enquiries through the touch screen application. This high definition 32” display allows for easy viewing of pictures and text from any angle. Using the touch screen, visitors can direct their way through the site to view information on the coal industry, which employs 16,000 workers in the Hunter region and the many community projects Xstrata Coal supports.
For more information on Digital Signage Systems call Milestone Solutions Pty Limited on (02) 9418 6733 or email us at sales@milestone.com.au Sept-Oct 2011 Council Manager | 39
Is information overload taking its toll on your employees? The world’s information is doubling every two years, with a colossal 1.8 zettabytes to be created and replicated this year alone. At an enterprise level, this is coupled with the realisation that the promised “paperless office” of the future is turning out to be a myth — and that while the amount of information being stored, shared and accessed electronically is increasing, the amount of paper we’re using is also continuing to grow. This presents a challenge for records managers — how can companies help their employees navigate this increasingly complex landscape of documents in their varied formats, so that they can remain productive? A typical employee could spend between 30–40% of their time looking for information , and this not only impacts employee satisfaction, but the bottom line — even in a relatively small business, that could amount to $507,000 worth of lost time per year. In a recent survey conducted by IDC, it was uncovered that 72% of organisations surveyed relied on saving documents to network drives. Not only is this content not easily shared, it is difficult to index and search. It is also prone to the dangers of version control, with multiple variants of a single document being saved locally by different people throughout a collaboration process. “Investing in an electronic document management system (EDMS) should form an integral part of any business’ records management strategy, so to discover that 40 | Council Manager Sept-Oct 2011
only 9% of companies surveyed had implemented them was a real shock,” said Leon O’Reilly, Office Innovation Manager, Fuji Xerox Australia. “Having a robust EDMS, such as DocuShare, enables document management, collaboration, review and approval, and Web browser access to support information sharing at all points of the enterprise by every knowledge worker.” However, as many records managers have come to realise, the implementation of a document management solution can have its challenges. Records managers cited “uninterested end users” as the number one challenge they face. Therefore, to assist with employee utilisation the solution has to be user-friendly and supported with the appropriate change management during implementation Fuji Xerox have developed a solution, using the humble office multifunction device (MFD) as the “gateway”, Image Gateway for ApeosPort . “We designed Image Gateway to help our customers better manage their information requirements and introduce greater efficiencies in their document intensive processes and workflows,” O’Reilly said. “By managing information from one place, businesses stand to benefit from more sustainable document practices, cost savings and reduced paper wastage. It also promotes data integrity and compliance for document storage and access.” It enables scanning and indexing documents directly from the ApeosPort
MFD into a document management or electronic records system. Currently there are connectors for TRIM, DocuShare, Worksite and SharePoint, with others in development. Users are also able to retrieve, preview and print directly documents stored within the EDMS directly from the MFD. Users have access to “scan to “and “retrieve from” functions with the same permissions and systems rights as if they were using their desktop PC. The scanning functionalities in Image Gateway also include optical character recognition (OCR), meaning documents can be scanned and saved as searchable pdfs, Word documents or another of the 400 compatible file formats. This means a document can be scanned, OCRed and saved directly into an EDMS all at the touch of a button and retrieved without the incumbent license costs for proprietary applications. In the next upgrade, IGA 2.5, set to be released in late 2011, users can also experience the benefits of the latest in environmental technology, with features designed to redirect print to the most sustainable device, enhanced environmental reporting, and a setting that allows the device to “learn” how it is being used, and optimise its power settings accordingly. When coupled with a Fuji Xerox ApeosPort multifunction device Image Gateway, DocuShare provides a complete end-to-end document management solution from a single trusted vendor.
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Sept-Oct 2011 Council Manager | 41
SENIOR POSITIONS
Senior Positions: monitoring the comings and goings of council CEOs New GM for Griffith City Council Griffith City Council has appointed Brett Stonestreet as General Manager to succeed Peter Brooks who resigned earlier this year after seven years in the top job. Mr Brooks left Griffith at the end of June to take up the position of General Manager with Glenorchy City Council in Tasmania. Mr Stonestreet commenced his term with Griffith Council in late August. He has 30 years experience in local government and has spent a significant period of that time as a CEO, Group Manager and General Manager in Moyne, Gunnedah, Cobar and Barraba Shire Councils. Among the list of projects Mr Stonestreet is keen to implement are the Community Strategic Plan and the development of a delivery plan to put in place projects developed from suggestions and feedback received through the recent Growing Griffith 2030 forums.
Campaspe Council reappoints CEO Campaspe Shire Council has voted to reappoint Chief Executive Officer, Keith Baillie, for a further five-year term. Mr Baillie’s new term will commence on September 1, 2011, and conclude at the end of August in 2016. Campaspe’s Mayor, Neil Pankhurst, said the reappointment reflected the council’s confidence in Mr Baillie’s leadership and the outstanding contributions he had made to the shire over the past five years. Cr Pankhurst said as a Certified Practising Accountant, Mr Baillie had 42 | Council Manager Sept-Oct 2011
been the driving force behind organisational reform, introducing council’s Financial Sustainability Review program, which sought to identify and implement initiatives to increase long-term sustainability. He said since Mr Baillie had been CEO, the council had developed a 15-year financial plan, progressively closing its asset renewal funding gap by 1.5% each year and had achieved corporate membership with the Australian Institute of Project Management, only one of four councils in Australia to achieve the status.
Greater Shepparton searching for CEO The City of Greater Shepparton is searching for a Chief Executive Officer to succeed Phil Pearce who is the new General Manager of the City of Newcastle. Mr Pearce left Greater Shepparton in mid-July and council has appointed Julie Salomon as Acting Chief Executive Officer until a new CEO has been chosen. Ms Salomon was appointed the council’s General Manager Community Development in May 2010. Before taking on her role with Greater Shepparton she was the Manager Family and Children’s Services at the City of Yarra for two-and-a-half years.
New CEO for Burnside Council Burnside Council in Adelaide has confirmed Paul Deb as its Chief Executive Officer. Mr Deb had been Acting CEO of the council for 17 months. A statement issued by
Burnside councillors said he had been thrust into the Acting CEO’s role “in the most difficult of circumstances when the former council and Burnside administration were under intense pressure”. The council was the subject of a lengthy inquiry undertaken by former state Auditor-General, Ken MacPherson. Mr MacPherson’s draft report has been sent to the SA Police Commissioner and thousands of documents associated with his investigation are being assessed by the Crown Solicitor’s Office. The councillors’ statement said that Mr Deb had provided strong and essential leadership during the last eight months of the previous council and had impressed the newly elected council with his abilities, knowledge and commitment to the City of Burnside. Since joining council in 2003 as Manager, Development Assessment, he has managed all aspects of the organisation, more recently as General Manager, Planning & Infrastructure and Acting CEO.
Mount Gambier searching for new CEO The City of Mount Gambier in South Australia’s south east is searching for a successor to Greg Muller who is stepping down as Chief Executive Officer towards the end of the year. Mr Muller has worked with the council for about 40 years and, after leaving the CEO’s chair, will undertake some project work for the council as part of his transition into retirement. The council is looking for candidates from the local government and commercial sector to apply for the role.
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Legal briefing
Understanding mining and energy projects By Patrick Ibbotson, Partner, Maddocks Recently there have been many media reports highlighting the tension between mining and resource projects and local communities. Coal seam gas exploration is the most recent example of a long running tension between these projects and the communities in which they need to exist. In the last years of the former Labor Government, mining projects in the Hunter Valley had increasingly attracted attention from communities and green groups as well as from vineyard operators, tourism operators, stud farms and other agricultural users. Often councils are caught in the middle. Councils generally do not have an approval role in relation to major mining and resource projects. They can benefit from the employment that they generate but are answerable to the community. Councils are a legitimate voice in the debate about projects. In this article we explore some of the issues that councils should understand in relation to these projects and the project’s interaction with the community. We do not take a position as to whether council should object to or support a project. Rather, adopting a neutral stance: what are the issues that councils should understand for every project?
Define the project It may sound simple but often people forget to adequately define what the project is. A mining project is not just the mine site. It includes buffer zones and supporting infrastructure. Supporting infrastructure may include roads, power lines, pipelines and processing facilities. When a new project is proposed, it is important to understand what the whole project is.
Understand what the land requirements are
This flows from the project definition. The mining activities would normally 44 | Council Manager Sept-Oct 2011
take place in a mining tenement which is granted by the State Government. The buffer zones would normally be within the mining tenements or within land controlled by the mining company. The supporting infrastructure may, however, be within mining tenements or it might be within public corridors or in easements crossing private land. Depending upon where the supporting infrastructure is located, the council may have a role to play. In particular, placing infrastructure in road corridors, making connections with access roads to road corridors, building flyovers or underpasses etc may require the agreement of council as the owner of a road corridor. Where council holds land as trustee then council’s permission as the trustee may be required to enter the land. Reserves and “community land” need to be carefully identified. It is important for council to identify where the mining activity and supporting infrastructure touches council’s interests.
Understand the process for consent to access council land Council needs to carefully consider what the process is for giving or refusing its consent for access to, for example, a road corridor. Depending upon the jurisdiction and the interests involved, the council may or may not have an unfettered right to grant or refuse access. Generally, even if the council has a right to refuse access, the council needs to consider whether in reality it is going to be able to rely upon that discretion or whether it will come under significant pressure from the mining company, the Minister or the community to grant or deny access. Equally Council needs to be aware that there are often objectors to these
projects and one route for objectors to challenge or delay a project may be to attack council’s decision making process. For example, in New South Wales councils need to consider carefully whether to grant approval under section 138 of the Roads Act 1993 for supporting infrastructure or other developments to facilitate a mine. An opponent of a project might challenge the grant of such an approval in their attempt to delay or defeat the mining operation.
Understand what the restrictions on land access are
Not all land in the mining tenement is available for mining. There are controls in the mining legislation on what land a miner can enter and where they can carry out exploration or other mining works. For some lands the permission of the landowner may be required. Mining legislation normally provides for a dispute resolution procedure through a court or tribunal. Examples of land where access is limited include: • Some agricultural land (for example in New South Wales prime agricultural land); • Land where there are improvements in particular dwellings; and • Lands in ecological reserves, national parks and similar ecologically sensitive sites. Whilst the council may not have an approval role in relation to the project or access to these lands which might be owned by private parties or the State, the council’s local community will often expect the council to have an understanding of what land is or is not available to the mining operators. There are useful websites which include summaries of the entitlement of holders
of a mining tenement to enter land. These include: • NSW — Department of Primary Industries: www.dpi.nsw.gov.au • Queensland — Department of Employment, Economic Development and Innovation (Mining and Safety page): http://mines.industry.qld.gov.au • Victoria — Department of Primary Industries: http://new.dpi.vic.gov.au • Western Australia — Department of Mines and Petroleum: www.dmp.wa.gov.au
Native title and indigenous cultural heritage
Council’s community includes the local aboriginal communities. The grant of mining tenants or the grant of interests in land to enable supporting infrastructure to be constructed and used may affect native title and require compliance with the Native Title Act 1993 (Cth). If council controls land where native title has not been extinguished, this may require that council comply with the Native Title Act ‘future act’ procedures. Further, the community may expect the council to understand the Native Title Act procedures as they relate to other lands within the local council area. Where aboriginal objects and items of cultural heritage may be harmed or destroyed then there are other procedures and approvals that need to be obtained. These processes provide a rich opportunity for objectors to projects which has resulted in them being regarded with some cynicism. However, to the indigenous communities these are extremely valuable rights because they provide an opportunity to protect their cultural heritage.
Understanding implications of water usage
This may require that council think outside its local government area. The catchments and river systems of the country do not respect local government administrative boundaries. Obviously projects in one local government area may affect a catchment which spans a number of local government areas. Plenty has been said in the media about the tension around the competition for water resources. Mine sites can be a
further demand on a scarce resource. The council as a representative of its community has a legitimate voice in this sphere. Further, mining projects and coal seam gas projects in particular may affect water quality. These issues are hotly contested. Councils and representatives of the community also have legitimate voice in the debate about impacts on water quality. Approvals for water works, water abstraction, water use or water pollution may be required and provide a further touchstone for objectors to challenge projects.
Understanding the approval requirements
Council should understand who approves what aspects of the project. Usually the mining activities will be approved at a State level. However, Council may have residual approval roles in relation to planning approvals for supporting infrastructure or processing facilities, access to public utilities, connection to council roadways, management plans and incidental issues which are the subject of conditions in the mining tenements or in planning approvals granted by the State. Councils need to understand what role they are able to play and what roles they want to play in any given project. The council may unavoidably have a role and it will then need to understand how it meets the expectations of its community.
Commonwealth involvement Some projects may be ‘controlled actions’ under the Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act) or require approvals under other Commonwealth legislation such as the Aboriginal and Torres Strait Islander Heritage Protection Act 1984. Typically, under the EPBC Act actions which will require approval include: • Significant impacts on species, ecological communities and habitats listed under the Act; • Significant impacts on the environment of a Commonwealth Place; and • Significant impacts on international migratory species.
The EPBC Act is currently under review (http://www.environment.gov.au/epbc/ review/index.html). If a project is referred under the EPBC Act then the project cannot be commenced until a decision on the referral is made. Referrals are published in on the web (http://www.environment.gov.au/epbc/ notices/index.html). If the Minister decides that the action does require assessment and approval under the EPBC Act then the Minister will decide on an assessment process. Usually this will involve an opportunity for the public to be consulted. In these situations the local council and the community may have opportunities to make submissions to the Commonwealth in relation to the referral or approval process.
Conflicts of interest It follows from the definition of the project that when thinking about a project, councillors in particular need to be aware of the whole project not just the specific mine site or extraction site. This means that the ambit of conflicts of interests (simply in relation to the land affected) is broader than just the mine or extraction site. As always, councils and the council officers need to diligently assess whether there is likely to be a conflict of interest, actual or perceived, and deal with it appropriately. This is particularly important in the context of mining projects where there is a significant amount of objection and where challenges might readily be taken to council’s decisions which are seen as facilitative of a project.
Conclusion Mining projects are often not the subject of council planning approval. Nonetheless councils have a legitimate role to play often in approving supporting infrastructure, permitting access to lands or as a voice in the public consultation. The community has always looked to councils to represent their interests in major projects. The expectations seem to be increasing as there is more tension between resource projects and existing land uses whether agricultural or urban. Sept-Oct 2011 Council Manager | 45
Document automation solutions Like any other business, Local Government must constantly aim to improve its processes and use of technology.
Like any other business, Local Government must constantly aim to improve its processes and use of technology. Implementing improvements in these areas is essential in ensuring that Councils are able to continue to provide a high level service to their constituency. This computerisation of the business workforce has resulted in the use of more and more paper, which seems counter-intuitive. Particularly when considering areas such as environmental sustainability and operational costs within the Local Government entity itself. An increasing number of organisations are implementing Document Automation solutions to combat these specific issues. Redmap’s Document Automation focuses on transactional paper like Vendor Invoices, Sales Orders and Proof of Delivery dockets and where this paper moves around the office as part of the business process. A great example of such a process is in the Accounts 46 | Council Manager Sept-Oct 2011
Payable department with Vendor Invoice processing. Seamless integration into most major ERP systems means that scanned data captured from vendor invoices can be compared to Purchase Orders in the ERP. Those invoices that do not have a PO or do not match a PO are automatically sent into a customised workflow for electronic routing and approval. In most cases implementing Document Automation will increase your finance clerk’s throughput in excess of 100%. Businesses deploying Accounts Payable Automation have noted a reduction of invoice processing time from 23 days to just 5 days¹. There are significant cost benefits to be realized in the digitization of invoices in 2 primary areas: • No more hard copy mailing of documents to and from the branch offices and HQ for approval; and • Electronic workflow means that invoices are now managed centrally and can be automatically escalated if not actioned within a specified time period (i.e. have sat on a manager’s “desk” for too long). This means the issues of being put on credit hold for non-payment of invoices becomes a thing of the past. Not only does Document Automation provide a great opportunity for Local Government entities to reduce operational costs, it also reduces the need for the copious amounts of paper currently being generated. Increasing the environmental sustainability and reducing operational costs are just a couple of the many benefits to be had in the paper-less office. Redmap is well established in the Document Automation market having been in the business for 16 years and with offices in Australia, the Philippines, and the US. As the recipient of the 2005 Australian Exporter of the Year for Information, Communications and Technology Award, Redmap is a well-decorated organization. Their OEM technology has been rebadged by some of the largest technology organizations in the world, including Toshiba and Sharp. Redmap holds regular webinars to help businesses understand the benefits automating paper processes around the ERP system can deliver. To register for the free webinar please go to www.redmap.com/events/ webinars.php and select a webinar in your area.
¹ Automating AP processes through imaging and workflow, PayStream Advisors, Q3 2010.
Councillor Townsville
a city on the rise
MY VISION:
STRIVING FOR A SUSTAINABLE
WAGGA WAGGA
NEWS
COUNCILLOR TRAINING
COUNCIL LEADERS Sept-Oct 2011 Council Manager | 47
COUNCILLOR NEWS
News of September Wollongong beach coast
New Committee of Management for Sea Change Taskforce
ICLEI appoints new Chief Executive ICLEI — Local Government
Mr Brennan worked
for Sustainability — Oceania
extensively in Indonesia, South
The National Sea Change
from Moyne Shire Council (Vic)
has appointed former City
Korea, Vietnam, Taiwan and
Taskforce has a new Committee
was elected and Cr Mendy
of Melbourne councillor
China in support of city and local
of Management to oversee its
Urie from East Gippsland Shire
Martin Brennan as its new
government’s role in promoting
operations until 2013. There were
Council (Vic) was re-elected.
Chief Executive Officer and
and working toward a sustainable
Regional Director.
low carbon future. For the past
15 nominations for the election
Queensland committee
of 12 state representatives to
members are Cr Debbie Blumel
the committee. The poll was
from Sunshine Coast regional
staff member of the ICLEI
Director, has served as ICLEI’s
held in conjunction with the task
Council and Cr Julia Leu from
— Oceania Secretariat in 1998.
Acting CEO.
force annual general meeting in
Cairns Regional Council.
More recently, he was Deputy
Canberra on August 23.
South Australia’s representatives
Mr Brennan was a founding
CEO and responsible for
Two nominations were received
are Cr Pat Chigwidden from the
providing political and partnership
from Queensland, South
City of Victor Harbour and Cr
support to ICLEI campaigns
Australia, Western Australia and
Kym McHugh from Alexandrina
and programs.
Tasmania and those candidates
Council, while Western
were elected to the committee
Australia’s committee members
long association with local
without the need for a ballot.
are Cr Barry Sammels from the
government as an elected
City of Rockingham and Cr David
representative and a professional
Smith from the City of Bunbury.
working in the sector.
Three nominations were received from New South Wales and four from Victoria. Councillor
Cr Fiona Buchan from
Mr Brennan has had a
He served on Melbourne
Dot Holdom from Tweed Shire
Kingborough Council and
City Council for nine years and
Council (NSW) was elected
Cr Jennifer Crawford from
was also the National Facilitator
and Cr Fergus Thomson from
Glamorgan Spring Bay Council
for Regional Cooperation and
Eurobodalla Shire Council (NSW)
are Tasmania’s members on the
Development with the Australian
was re-elected. Cr Jill Parker
Committee of Management.
Local Government Association.
48 | Council Manager Sept-Oct 2011
six months, Bernie Cotter, Board
Martin Brennan
Survey shows challenges ahead for Qld councils Forced amalgamations and increasing costs
Queensland councils achieved an overall
have helped to harden community attitudes
performance rating of 65% this year, down
survey was that the business of governing at
toward local councils, according to Local
from 67% in 2009 and more than 70% in 2007.
all levels, local, state and federal, was getting
Government Association of Queensland President, Paul Bell.
However, the survey also found an
Cr Bell said the messagae from this year’s
harder. He said councils also had to deal
overwhelming majority of respondents —
with the burden of forced amalgamations,
more than 70% — perceived councils to be
which caused a disconnect between them
latest Community Satisfaction Tracking survey
performing well in providing services such
and the community they represented. Cr Bell
contained sobering news for councils and
as libraries and sport and recreation facilities.
said people noticed a change in their local
confirmed the local government sector was
And 73% thought their council rates and
government and a lot of them didn’t like it.
dealing with some of the toughest times it
charges were good or reasonable value for
He said the challenge for councils was to better
had faced in decades. The survey found that
money, up from 66% two years ago.
explain their good work and achievements.
Cr Bell said the results of the LGAQ’s
Recognising life-long service to local government
Regional advisory body holds inaugural meeting
A record three Life Memberships
communities over half a century
A body established to provide
term vision that addressed
to the WA Local Government
of collective service.
independent advice to the Federal
infrastructure requirements in the
Government on emerging regional
decades to come, both regionally
Association were awarded at
Another 50 local government
the recent annual WA Local
members were honoured at
priorities and how best to grow
and nationally. Mr Crean said some
Government Convention.
the convention with an Eminent
regional economies has held its
regions were growing rapidly as
Service Award, Long and
first meeting. The Ministerial
a result of the mining boom while
recognise eminent leadership
Loyal Service Award, or Local
Advisory Council on Regional
others were affected by challenges
and commitment to improving
Government Merit Award.
Australia discussed the
such as the high Australian dollar.
WALGA President, Troy
infrastructure challenge that
He said the council would also
The Life Memberships
local communities.
Pickard, said the annual Local
regions faced and the effect
consider how the government’s
the City of Stirling; Cr Paul Kelly,
Mayor David Boothman from
Government Honours Awards
of the so-called “patchwork
investments in regions could best
Deputy Mayor of the Town of
recognised community
economies” on Australia’s regions.
support regional communities
Claremont and Cr Peter Monagle,
representatives for their
Federal Minister for Regional
President of the Shire of Harvey
willingness to go above and
Australia and Local Government,
were awarded life memberships
beyond the call of duty in making
Simon Crean, said the council
for their contributions to the local
their communities a better place
agreed it was important to
was in Melbourne and it will next
government sector and their local
for everyone.
develop and implement a long-
meet next at a regional location.
to build a sustainable and prosperous future. The council’s inaugural meeting
Sept-Oct 2011 Council Manager | 49
COUNCILLOR NEWS
NSW planning review labelled as ‘major overhaul’
New laws for Qld local government elections
What New South Wales Planning
system and draft legislation —
Council CEOs in Queensland
of having to make decisions about
Minister, Brad Hazzard, described
is expected to take another
will no longer run council
their employer during an election
as the biggest overhaul of the
eight months.
elections — except in exceptional
and having to consider the impact
circumstances — under the
the decision may have on the CEO’s tenure.
state’s planning laws in more
Mr Hazzard said the new
than 30 years is expected to take
laws would provide a framework
provisions of legislation passed
18 months.
for development applications
by State Parliament to streamline
and strategic land use, and
the way local government
amendments clarified councillors’
a Senior Commissioner of the
would provide certainty for
elections are staged.
obligations with respect to
NSW Land and Environment
businesses to invest in New
Court and former State
South Wales.
The review will be chaired by
Environment Minister, Tim
President of the NSW
Elections will be run by
Mr Lucas said other
potential conflicts of interests
the Electoral Commission
by reinstating councillors’ power
of Queensland which is an
to manage their own potential
independent authority.
conflicts of interests. He said
Moore, and a former state Labor
Local Government Association,
Minister, Ron Dyer.
Keith Rhoades, said the review
NSW Local Government
under the amended laws, failure
was long overdue. Cr Rhoades
Minister, Paul Lucas, said the
to adequately manage a conflict
will be a four month listening
said the laws were a complex
Local Government Electoral
of interest by a councillor
and scoping stage, and a green
system of multi-layered plans
Bill 2011 brought four pieces of
would be dealt with through
paper will be prepared in the
and policies with numerous
legislation into one and would
misconduct avenues. The laws
following six months. The Paper
development approval pathways
take the politics out of councils
continued to require councillors
will provide options for the new
and consent bodies. He said
running their own elections. He
who wanted to run as candidates
planning system. A White paper
they were in desperate need
said the legislation would not place
in State Government elections
— outlining the new planning
of an overhaul.
CEOs in the precarious position
to resign from their position.
The initial stage of the review
NATIONAL ECONOMIC DEVELOPMENT CONFERENCE 2011
THE DIGITAL ECONOMY 4–6 October, 2011, Stamford Plaza 150 North Terrace, Adelaide, SA
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• Discover the Future Vision detailing the context of the possibilities that broadband will offer economic development practitioners into the future. • Learn the practical strategic frameworks used successfully by leading international, state, regional and local governments. • Gain valuable insights into how to structure a regional strategy in your location. Guaranteed ‘hands on’ and practical. Speakers including Robert Bell [Co-Founder, Intelligent Communities], Dr Tim Williams [author of the British white paper on the Digital Economy], Dr Helen Thompson, Director Centre for eCommerce and Communications, University of Ballarat, and Geof Heydon of Alcatel-Lucent. The final program can be found at the website. Thursday 6th October 2011 Master Class Workshop Facilitated by Robert Bell Co-founder, Intelligent Communities Post Conference Tours Willunga Site Digital Village and Digital Barossa RDA, Wine Sector http://www.edaustralia.com.au/content.php?id=1083 50 | Council Manager Sept-Oct 2011
MY VISION
Leading the way to a sustainable future Wagga Wagga City Council has implemented a variety of successful initiatives to help the council achieve its sustainability goals , writes the City’s Mayor WAYNE GEALE.
T
HE WAGGA WAGGA city council is a signatory to the Mayors’ Agreement on Climate Change and recognises that wherever possible it will undertake policies and actions that support the abatement of Climate Change. I am pleased to say that since its signing this agreement has been integral to practical
in the community will consider this innovative
assist in reversing the long-term decline
greenhouse action.
in biodiversity so that biodiversity values
Low Carbon Australia CEO Meg McDonald
may be improved or maintained.
said the project was a very important development for Australian local governments and businesses to access expertise and finance to purchase energy saving equipment. Wagga Wagga City Council’s Local
Our Great Green Challenge
initiatives that the council has undertaken to
Environment Plan was the first plan to obtain
Council challenged the Wagga community
meet its requirements and to encourage the
Biodiversity Certification from the New South
to be a part of its Great Green Challenge —
community to do likewise.
Wales Government.
a program that sought a number of
The city library launched a ‘Save Power
Obtaining the biodiversity certificate for the
participants to spend six months working out
Kit’ that contains tools and instructions that
new LEP was a significant achievement and
how they could make their home or business
can help people find ways to save power
will result in areas rezoned for development
more sustainable.
and reduce their power bills — the kit tools
to proceed without the need for threatened
can be used to measure power use from
species assessments.
appliances, find out where energy is being
Across the local government area the
Five families and one business were selected to be a part of the challenge. Each challenger was given $500 to help implement
wasted and learn how to improve efficiency
biodiversity certification allows:
their changes and the group that made the
to save on bills.
• 933 hectares of endangered ecological communities and threatened species habitat, representing 91% of all extant vegetation to be retained with development directed away from these areas through the appropriate zoning. • A further 36 hectares (3% of all extant vegetation) of vegetation to be retained through conditions attached to existing development consents and protection through the development control plan. • All high conservation value areas to be retained. • High conservation value vegetation and habitats will be linked and consolidated into a viable network of reserves and other natural areas.
most significant savings over the six-month
The kits con be borrowed free from any of our 12 regional libraries and this project is about to be adopted state-wide. Wagga Wagga City Council and Low Carbon Australia recently signed a landmark energy efficiency agreement, the first of its kind for regional Australia and a local government authority. The project at the basis of the agreement will see the council save around $60,000 of its energy bill and avoid over 188 tonnes of CO2-e each year. The project involves the installation of energy-efficient equipment at three key council facilities including the council chambers, Theatre and Airport and will include light and light fitting retrofits, lighting controls and voltage reduction units. There is a substantial business and
The most significant value of this
period will receive a full solar kit for their home or building. This has created significant interest and many hundreds of people have attended the workshops held through the challenge period to hear how the participants are doing and to gain practical know ledge of how they can make these savings also. Significant media coverage has also helped focus the community on the outcomes. Council’s sustainability goals are based around many small steps over several projects rather than a huge leap. At all times we are conscious of the need to show an example to the community and encourage them to join us as individuals or a group so that together our community can be much more attuned to our
community network in Wagga Wagga and the
certification is that it offers great opportunities
environment and the reductions we need
council hopes that, by leading the way, others
to put in place planning strategies that will
to make for a sustainable future. Sept-Oct 2011 Council Manager | 51
COUNCIL LEADERS
manufacturing capacity is located in Salisbury, and there is a major transport hub for export businesses. It is an educational city hosting a university and a TAFE college. Cr Aldridge said she first decided to stand for council to give people a better quality of life. “Certainly it’s my goal to have people recognise and value their city, and have them take ownership of it.” She said revitalising Salisbury’s city centre was an integral part of the goal to empower the population. “Salisbury needs to be freshened-up and we need to bring people back into the city to live. Council is working on the Salisbury Town Centre Renewal project at the moment. “It’s developing a plan for rejuvenation of the city centre and council would like to see some major improvements over the next 10 years. “We’ve had consultations with residents who are happy about returning to the centre of Salisbury and we’re looking at the kind of housing they want.” Cr Aldridge said part of the overall redevelopment should be to look at establishing training centres for a key industry sector like mining. Gillian Aldridge
“Centres where mining companies can send their personnel for training and skills development. I’d like to talk with the mining companies about an initiative like that — an initiative that would
Life-long dedication to Salisbury
G
ILLIAN ALDRIDGE IS PASSIONATE about the City of Salisbury and it shows in the way she talks about her commitment to the council and the community she has served for 23 years as a councillor, four of them as Mayor. “I am very privileged to be mayor of this city. Everyone works together as does council; they are dedicated to advancing Salisbury. To work under those circumstances, I have to pinch myself every day,” Cr Aldridge said. “I moved here 45 years ago as a young bride and I think Salisbury
require federal and state government assistance. “The industry training would complement tertiary education at the Salisbury campus of the University of South Australia.” Cr Aldridge said Salisbury had some of the best serviced land in Australia to attract industry. “Salisbury is very well planned; we’ve considered and anticipated our infrastructure and where it needs to go. We have so many opportunities for development.
South Australia has a 30-year strategic plan that focuses on where people live and work, and Salisbury fits comfortably into that plan with regard to employment and housing. We tick all the boxes.
is an absolutely beautiful city. I guess what I love about it most is the enthusiasm and community spirit of the people.” The City of Salisbury is 25 kilometres north of Adelaide and
Cr Aldridge said she would love to see Salisbury be an age friendly
stretches from the beaches at Gulf St Vincent to the Adelaide Hills,
city. “I’ve been told that if you plan for the young, you plan for the
covering an area of 160 square kilometres.
young; but if you plan for the aged, you virtually plan for everyone.
Its jobs growth is about double that of South Australia as a whole and the population of 132,000 is projected to grow to 160,000 in the next 10 to 20 years. Salisbury is home to electronics research and development centres,
“I want our city to provide quality living for people of all ages.” Cr Aldridge said she wanted to continue in local government for as long as possible. “My work in local government is virtually full-time. My husband
has a diverse manufacturing base, exporting businesses, and many
and I run a business in Salisbury and my daughter has filled the void
innovative and entrepreneurial enterprises. About 70% of SA’s
I’ve left because I’m giving my energies to the city every day.”
52 | Council Manager Sept-Oct 2011
Albury: a city of opportunity and sense of community
A
LICE GLACHAN AND HER FAMILY settled in Albury in the 1970s when the Whitlam Government identified Albury-Wodonga as the focus of its decentralisation policy.
The policy was developed as part of Prime Minister, Gough
Whitlam’s, plan to arrest the growth of Australia's large coastal cities by encouraging decentralisation. Alice was six when her parents moved to Albury after life on a farm.
“Ideally, we would like to attract industries that add value to local produce and locally produced components, and then put those goods into the market.” Cr Glachan said two multi-million dollar initiatives were indicative of the city’s growth and vitality. The $50 million Volt Lane development involves the transformation of a car park into cafes, a gourmet fresh food market, the new Albury premises for the Australian Taxation Office and other mixed
She grew up there and is now the Mayor of Albury. Cr Glachan has
use development. The development — to be completed by October
a background in small business, education and defence.
2012 — also includes an upgrade of Volt Lane and Amp Lane.
Following a short service commission as a naval officer, she moved
Albury will also be home to a $65 million regional cancer centre.
to England with her husband. During her eight years in England,
Local and rural patients will benefit from the centre, which will be
Cr Glachan worked as Faculty Registrar at the Southampton Institute.
located at the Albury Campus of Albury-Wodonga Health, formerly
Her two sons were born in Southampton and the family returned to Albury in 2001. “We wanted the family to live in a community that was big enough to provide opportunities, but small enough to retain a sense of community,” Cr Glachan said. She was elected to council in 2004 and is now in her second term. “One of the strengths of our city and our region is the broad spectrum of sectors that make-up our economic base — a mix of industry, retail and government sectors.
Albury Base Hospital. It will include a third linear accelerator for radiation therapy and the existing radiotherapy equipment will be upgraded. Cr Glachan said council wanted to achieve managed population growth in Albury — growth that equated to increased job opportunities in the area. She said the Albury-Wondoga area had a significant multicultural population. That population grew, in part, out of the settlers who made
“That spectrum helped us to ride out the GFC (global financial
Albury home after passing through the former Bonegilla Centre
crisis) and to weather the prolonged drought. Even though the rains
— a so-called “training centre” where non-British migrants were
have returned, the aftermath of the drought is still impacting on the
housed and given courses in English and in Australian customs
rural sector,” Cr Glachan said.
to ease their assimilation.
“We do not want to over-focus on any particular sector as has been the case in some other regional cities. If you are over-exposed in one area, and there is a downturn for whatever reason, it will directly affect you.
Thousands of new settlers passed through the centre which operated from just after World War Two until the end of 1971. Cr Glachan said the area’s growth posed challenges for Albury. She said those challenges came in the form of providing continued infrastructure to meet growth and recognition by the New South Wales Government that Albury was really part of the state. Cr Glachan said there was concern that Albury was “at the end of New South Wales” because of its location on the border with Victoria and the State Government needed to show increased support for the Albury community. Another key challenge facing the city was securing the finance to improve cultural and sporting facilities that were critical to the development of the wider community. “The Albury Regional Art Gallery needs major help to increase the scope of art works and exhibitions it provides for the community. The cultural life of a regional city is key to its ongoing development.” Likewise, Cr Glachan said, the Lavington sports complex needed an injection of millions of dollars to make it a first-class facility. The complex was, until the 1980s, the home of the Lavington
Alice Glachan
Sports Carnival, incorporating the Lavington Gift. The complex was purchased by council in 2009 from the Panthers Entertainment Group. Sept-Oct 2011 Council Manager | 53
COUNCIL PROFILE
Cruise ship in the port of Townsville
Working to make Townsville Queensland’s ‘second capital’
T
Townsville is one of five first release sites across Australia for the National Broadband Network and Cr Tyrell said council was particularly keen to take advantage of the roll out which would see fibre optic connected to about 3,000 homes and business. “We believe that the advent of the NBN will take us to another level. It will be a fantastic opportunity for us to be a drawcard for new businesses and give us a vital edge over other regional areas wwin sectors such as health. “Townsville has the largest public hospital outside Queensland’s south east corner and the largest emergency facility department in the state. We’re hoping the advent of NBN will bring a whole new wave of health professionals to the city and transform the delivery of services like health,” Cr Tyrell said.
OWNSVILLE LIES about half way between the tip of Cape York and Brisbane, and has been dubbed a “second capital city” for Queensland by the state government. The government has released a blueprint for Townsville
The Port of Townsville is a key driver in the city’s development and its operations are being expanded with the development of an $85 million Cruise Terminal. The project involves the reconstruction and extension of the port’s existing berth 10 to accommodate cruise
which Premier, Anna Bligh, said would turbo-charge the city’s
liners and commercial and military shipping. The redevelopment will
economy for the next 20 years and beyond.
cater for thousands of cruise passengers and naval personnel who
The Townsville Futures Plan incorporates elements designed to
visit Townsville each year.
boost future growth and prosperity in the city which is expected to be home to 295,000 people by 2031. It identifies strategies and actions that revolve around government, the economy, industry, defence, education and research. The plan was a key initiative of the state government’s Growth Management Summit held in March 2010. “This is a plan not dictated by government, but developed by city leaders, and it maps out how to capitalise on the tremendous advantages enjoyed by Townsville,” Premier Bligh said when launching the plan. Townsville City Council is lead by Mayor, Les Tyrell, who said the city and the region had benefited for many years because of the breadth and stability of the local economy. “We have about 12 key facets that make up our economy and no one of those facets contributes more than 13% to the overall economy of the city. “The even mix means that if one sector of the economy is in decline for any reason, the other sectors keep us going.” 54 | Council Manager Sept-Oct 2011
Les Tyrell
been revitalised — and identifying whole or
of them from overseas. The futures plan
the project’s construction phase. The jointly
Up to 400 jobs will be created during
sections of government departments suitable
provides for a Douglas Knowledge precinct
funded state-federal construction is due
for moving to Townsville.
which would consolidate the university
to begin in October and the terminal is expected to be operational by mid-2013. Council has contributed $4.8 million to
The city’s CBD has just undergone a $56 million redevelopment — the Flinders Street redevelopment began with the demolition
and Townsville Hospital as a knowledge and health precinct. On a personal note, Cr Tyrell said he was
provide connecting roads as part of the
of the city’s former mall in March 2010 and
an “elder statesman” of local government
development to expand the port’s operations.
opened to the public in mid-August this year.
in the region.
“We have a thriving port that continues
“Where people were put off by the state
He started in local government in 1979
to increase export tonnages each year, and
of the old mall, there is already a new found
and served for many years as Mayor of
we’re looking to the new terminal to expand
enthusiasm and optimism about Flinders Street
Thuringowa before it was amalgamated
the cruise ship industry,” Mayor Tyrell said.
and the future of the CBD,” Cr Tyrell said.
with Townsville in 2008. He has been
“Tourism is an important and growing part
“The new look Flinders Street is the single
mayor of Townsville Regional Council since
of our economic base. Townsville’s weather
biggest milestone in the revitalisation of the
is conducive to tourism with over 300 days
CBD and it sends a very strong message
Cr Tyrell said he was very proud of the
of sunshine each year.”
to potential investors that Townsville is a
Townsville community and the ability of its
confident city with enormous potential.
people to work together.
Cr Tyrell said Townsville’s positioning was a great advantage and would underpin its future economic development. “Townsville is a logistical centre for the mining industry in north and west Queensland and has the potential to
“Despite one of the longest wet seasons in
the amalgamation.
“We’ve witnessed that togetherness
recent memory and the disruption of Cyclone
with the recovery from Cyclone Yasi.
Yasi, the project has come in on budget and
It’s imperative that we co-operate
very close to time.”
because we’re so far from the seat of
Education and defence also underpin
government and we’ve learnt over time
become a major commercial hub and centre
Townsville’s economic development.
that we have to do things for ourselves
of government.
The Lavarack Barracks is one of the largest
despite our ability to partner with Federal
defence force establishments in Australia
and State Governments.”
“We’re very keen to have companies use our city as a distribution base in relation to
and the Queensland Government is looking
large retail operations and also to make it
at making the city a defence hub as
home for state and federal public servants.”
part of the futures plan. The plan calls for
One of the key planks of the Townsville
the establishment of a joint Federal-state-
Futures Plan relates to making the city a
local government body to advise on the
public service hub.
growth of a northern Queensland defence
The decentralisation plank includes locating all public servants within the Townsville region in the CBD — which has
hub in Townsville.
…Townsville is a confident city with enormous potential.
On the education front, James Cook University has about 11,000 students, many
Townsville City Council Facts Councillors: Cr Les Tyrell (Mayor), Cr David Crisafulli (Deputy Mayor),Cr Deanne Bell, Cr Suzanne Blom, Cr Ray Gartrell, Cr Brian Hewett, Cr Jenny Hill, Cr Jenny Lane, Cr Dale Last, Cr Natalie Marr, Cr Tony Parsons, Cr Trevor Roberts, Cr Vern Veitch Residential Population: Approximately 190,000 Suburbs: There are more than 40 suburbs in Townsville including Townsville City, Aitkenvale, Castle, Douglas (home to James Cook University), Garbut, Heatley, and Murray which includes Townsville hospital
Townsville streetscape
the Lavarack Barracks. Website: www.townsville.qld.gov.au Sept-Oct 2011 Council Manager | 55
Occupational Violence Awareness for Councillors Niall Kennedy Mmktg, Government Advisor Professional Development Here is an LG workshop to help you be more prepared for the prevalence of violence in the workplace. Working for the Council and serving the community carries risk of violence. Councillors have been attacked. Local Laws staff get hurt. Library and Recreational staff have recently been in the media with workplace injuries and scars received from violent behaviour. As we know, violence can happen anywhere. Sometimes there are telltale signs that violence is about to occur and sometimes spontaneous violence occurs almost at random. This course gives Councillors and LG Managers and Staff practical psychological tools and tips to use when a situation escalates or when confronting violence. The last module includes strategies to use after a violent incident has occurred. The course also helps to bring participants up to date with existing legislation and legal responsibilities in this area. Occupational Violence Awareness has been designed by an organisational psychologist to assist employees to have a heightened awareness of the potential for violence in the workplace.
This course is a lesson in the psychology of avoiding violence and it is not a self defence course. The course is designed to keep violence at bay and give you psychological response ideas to try and nullify the danger. Key Learning Outcomes Your Occupational Violence Awareness program will provide employees with valuable tools to: Define occupational violence and aggression Build rapport to generate relationships where none exist Discuss workplace bullying Use reflective listening to gain an understanding of others Gain an understanding of emotional intelligence Substitute vocabulary to lessen the tension in a dispute Review existing protocols Identify and label types of occupational violence and aggression Be aware of the relevant legislation and standards that clarify employers’ responsibilities in preventing and managing violence and aggression in the workplace Identify signs that may predispose and trigger violent and aggressive behaviours
Make strategic withdrawals and remain safe Pre assess areas of potential conflict prior to face to face contact Preferred Training Networks has designed and delivered training programs to Councillors and Councils across Australia including: Bass Coast, Boroondara, Brimbank, Caloundra, Casey, Fairfield, Frankston, Glen Innes, Hobsons Bay, Manningham, Gladstone, Maroondah, Nillumbik, Port Phillip, Rockhampton, Scenic Rim, Somerset Regional Sydney, Toowoomba, Wodonga, Whitehorse, Whittlesea. Occupational Violence Awareness Skills for Councillors is a training program delivered by an organisational psychologist. This program can be conducted at your offices anywhere in Australia. The maximum number of participants is 6 but we recommend groups of 3-4. If you can’t get a group size of 3-4 contact our office on 1300 323 752 for some alternatives.
Occupational Violence Awareness for Councillors For further information about ‘Occupational Violence Awareness for Councillors’ Contact Deborah Dear 1300 323 752 or email ddear@preftrain.com
56 | Council Manager Sept-Oct 2011
Public Sector Melbourne Park Function Centre, Melbourne & Olympic Parks
21 & 22 MARCH 2012 www.publicsectorsolutions.com.au The Public Sector Business Solutions Show is for anyone working within the Public Sector who needs to find solutions to enable better delivery of programs and services. What sets this show apart is that all exhibitors and speakers will focus on the unique needs and demands of the public sector professional. The event is dedicated to helping the three tiers of government, and the wider public sector, deliver better public services, more efficiently and effectively. Attendees at The Public Sector Business Solutions Show will:
• Gain advice and direction on how to go about making the changes required • Learn additional skills • Discover services, training and technology to make it happen • See what actually works for other organisations
The Show will feature:
• Extensive exhibition • Free presentations and lectures on key topics and case studies • Free workshops and demonstrations
Who Should Attend:
• Procurement • Administration • Human Resources • Accounting/Finance • Asset Managers • IT • Telecommunications • Business Management • Customer Service • Staff Development
Working In:
• Local Government • State Government • Federal Government • TAFE, Education and Universities • Charities • Not-for-profit Organisations
See and Learn about:
• Public Sector CRM Software and Strategy • Computer Software • Management Solutions • Procurement • Fleet Management • Human Resources • University Courses • Training Services and Courses • Consultancy Services • Office Equipment
To Register for Updates and to attend See www.publicsectorsolutions.com.au Attendance at the Show will be free.
Sponsorship and Exhibition Opportunities/Enquiries Scott McKinnon Manager — Strategic Business Development Phone: (03) 8534 5018 Fax: (03) 9530 8911 Email: scott.mckinnon@commstrat.com.au
General Enquiries Denise McQueen Conference and Event Manager Phone: (03) 8534 5050 Fax: (03) 9530 8911 Email: denise.mcqueen@halledit.com.au