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REPORT

CORPORATE SERVICES
COMMITTEE MEETING
Wednesday 6 August 2003

Council Chambers
1st floor Administration Building
Bloomfield Street Cleveland. Qld 4163
CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

TABLE OF CONTENTS

ITEM SUBJECT PAGE NO

DECLARATION OF OPENING 2

RECORD OF ATTENDANCE AND LEAVE OF ABSENCE 2

MOTION TO ALTER THE ORDER OF BUSINESS 3

1 GENERAL MANAGER CORPORATE SERVICES 4

1.1 NOTICE OF INTENTION TO ACQUIRE VALUELESS LAND -


SCHEDULE 54 4

1.2 ASSET MANAGEMENT POLICY AND STRATEGY 7

1.3 REDLAND SHIRE COUNCIL RISK MANAGEMENT POLICY 10

2 GENERAL MANAGER CUSTOMER SERVICES 14

2.1 EXCHANGE OF LAND - MACLEAY ISLAND 14

2.2 RESUMPTION OF PROPERTY FOR PARK & ROAD


PURPOSES - LOTS 3 & 4 RP216888 16

2.3 RESUMPTION OF PROPERTY FOR PARK (INCIDENTAL TO


CONSERVATION) 17

2.4 RESUMPTION OF PROPERTY FOR PARK PURPOSES -


LOT 25 RP14087 20

CLOSED SESSION 22

2.5 RESUMPTION OF PROPERTY FOR PUBLIC WORKS


(MARINE INFRASTRUCTURE) PURPOSES 22

MEETING CLOSURE 23

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CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

DECLARATION OF OPENING
Cr Newton declared the meeting open at 1.00pm.

RECORD OF ATTENDANCE AND LEAVE OF ABSENCE


Members
Cr D R Newton Chairperson and Councillor Division 1
Cr D H Seccombe Mayor
Cr F G Bradley Councillor Division 2
Cr J G Ross Deputy Mayor and Councillor Division 3
Cr P J Dowling Councillor Division 4
Cr M A Elliott Councillor Division 7
Cr B A Townsend Councillor Division 5
Cr A R Beard Councillor Division 8
Cr R F Bucknall Councillor Division 9

Cr Townsend entered the meeting at 1.01pm


Cr Bradley entered the meeting at 1.02pm
Cr Dowling entered the meeting at 1.08pm
Cr Beard entered the meeting at 1.16pm

Committee Manager

Mr R Turner General Manager Corporate Services

Officers

Mr M Elliott Property Services Manager


Mr G Jensen Manager Performance & Risk
Mr J Hunter Senior Advisor Asset Management

Minutes

Mrs J Parfitt Corporate Meetings & Registers Team

LEAVE OF ABSENCE

Moved by: Cr Elliott


Seconded by: Cr Seccombe

That leave of absence from today’s meeting be granted for Cr Bowler – Councillor
Division 6.

CARRIED

ABSENT

Cr Murray – Councillor Division 10

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CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

MOTION TO ALTER THE ORDER OF BUSINESS


Moved by: Cr Townsend
Seconded by: Cr Ross

That the order of business be altered to discuss items 2.1 and 2.5 after item 1.1.

CARRIED

Cr Townsend left the meeting at 1.14pm

Cr Bucknall left the meeting at 1.46pm

Cr Elliott left the meeting at 1.57pm

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CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

1 GENERAL MANAGER CORPORATE SERVICES

1.1 NOTICE OF INTENTION TO ACQUIRE VALUELESS LAND - SCHEDULE 54


File No: 568/2
Attachment: Valueless Land Schedule 54

Responsible Officer Name: Kerry Phillips


Manager Financial Services
Author Name: Judith Johnstone
Collection Officer

EXECUTIVE SUMMARY
A review of all rate assessments has been carried out. The review has disclosed a
number of assessments where rates remain unpaid for three years or more and the
overdue rates are greater than the Unimproved Capital Value. Attached is a list of these
assessments.

Action should now commence to acquire the land under the appropriate provisions of the
Local Government Act 1993.
PURPOSE
To recover rates and charges on the assessments where rates remain unpaid for three
years or more and the rates are greater than the Unimproved Capital Value in
accordance with sections 997, 998, 1051, 1052, 1053 of the Local Government Act.

BACKGROUND
Rate Notices are issued on a quarterly basis to the owners of these properties. Rates
remain unpaid. Reminder Notices ceased to be issued as they proved to be ineffective
and non productive. Legal action has not been commenced as it is not commercially
viable and is more expensive due to additional costs. Notices of Intention are issued
when rates are three years overdue and rates are more than the Unimproved Capital
Value. Efforts are made to contact owners in the case of return mail, ie tracer letters,
electoral roll checks and white pages checks. Once a Notice has been issued, the
owners have six months to pay the overdue rates.

The Local Government Act 1993 provides Council with the powers pursuant to Chapter
14, Part 4, Division 1, Section 997 to resolve to remove valueless land from Council’s
land record if rates levied on the land by the local government are at least three (3) years
overdue, the overdue rates total more than the Unimproved Capital Value of the land and
the land is considered to be valueless or of so little value that if offered for sale it would
not realise the overdue rates.

At the General Meeting of 25 September 2002 (report to Administrative Approvals


Committee of 17/09/02) it was resolved that the Mayor and Chief Executive Officer be
delegated the authority to sign under Council Seal those transfer documents for land
considered to be valueless, where Council has approved these actions under Section 997
of the Local Government Act 1993. Therefore once Council resolves to remove the
scheduled lands from the land record, in accordance with Section 997, this power can be
exercised.

ISSUES

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CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

Rates are not being paid on these lands and removing them from the land record will
ensure that budget estimates of revenue from rates will be more accurate.

If rates are not paid within the six-month period of the issue date of the Notice, the land is
transferred to Council.

Sale for Overdue Rates action is on hold as directed at commencement of the SMBI
Planning Study. This direction was given to ensure that Council does not sell land for
overdue rates whilst the study is in progress, to prevent land being sold that may
eventually be resumed/acquired by Council as a result of the study. There is also the
consideration that Council may sell land and subsequently not issue a Building Permit to
build on the land.

RELATIONSHIP TO CORPORATE PLAN


The recommendation primarily supports Councils strategic priority to ensure the long-term
financial viability of the Shire and provide public accountability in financial management.

FINANCIAL IMPLICATIONS
If a local government resolves to remove a reference to rateable land from its land record,
the local government must acquire the land under Chapter 14, Part 7 (Recovery of Rates)
Division 4 (Acquisition by local government of valueless land).

Council’s Environmental Protection Area advise that they anticipate an annual outlay of
approximately $2,000.00 will be required to maintain the said land if it is acquired.

CONSULTATION
Consultation has been conducted with the Debtor Management Team Coordinator,
Council’s solicitors, King and Company and the Pollution Prevention Unit for land surveys
(due diligence of care) as laid out in Council’s Contaminated Land Policy.
OPTIONS
PREFERRED
That Council resolve as follows:
1. To remove the scheduled lands from the land record, in accordance with the
provisions of the Local Government Act 1993, Chapter 14, Part 4, Division 1, and
Section 997.

2. Issue Notice of Intention to Acquire Valueless Land to registered proprietors and


encumbrances of the scheduled lands, in accordance with Chapter 14, Part 7,
Division 4, and Section 1052; and

3. That if the amount of rates on the Notices remains unpaid at the end of the statutory
six month period, that Council acquires the land under Chapter 14, Part 7, Division 4,
Section 1053.

ALTERNATIVE
1. Commence legal action to recover overdue amounts. This is usually ineffective and is
more expensive due to additional costs.

2. Attempt to sell the property for arrears of rates. Due to the possibility that building
permits may not be approved, the land is unlikely to sell.

3. Take no action against the defaulting ratepayers. This would adversely impact on the
KPI’s for the Debtor Management area.
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CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

OFFICER’S/COMMITTEE RECOMMENDATION
Moved by: Cr Seccombe
Seconded by: Cr Ross

That Council resolve as follows:


1. To remove the scheduled lands from the land record, in accordance with the
provisions of the Local Government Act 1993, Chapter 14, Part 4, Division 1,
and Section 997;
2. Issue Notices of Intention to Acquire Valueless Land to registered proprietors
and encumbrances of the scheduled lands, in accordance with Chapter 14, Part
7, Division 4, and Section 1052; and
3. That if the amount of rates on the Notices remains unpaid at the end of the
statutory six month period, that Council acquire the land under Chapter 14, Part
7, Division 4, Section 1053.

CARRIED

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REDLAND SHIRE COUNCIL
54

Assess Land Registered Proprietor Description of Land Zoning Area U.C.V. Years Rates Interest Total
No. No. Address on Council & Location M2 $ Overdue To to $
Records 30.06.03 30.06.03

14653 143185 Peter J Tisdale Lot 20 RP 129108 DP 845 700 3 1173.71 350.83 1524.54
Coral D Tisdale 126 High Central Road
36-40 Fox Road Macleay Island
Narre Warrwn North 3804

14989 144393 Mark Tate Lot 18 RP 131135 RA 544 700 3 1601.23 502.63 2103.86
C/- Pearlita Campbell 2 Jordan Street
PO Box 5057 Macleay Island
Somerset NJ 08873
United States of America

16553 138119 Donald R Hawkins Lot 23 RP 118042 RA 620 700 3 1669.96 557.74 2227.70
Unit 2 12 Cathy Street
100 Sun Valley Road Macleay Island
Kin Kora Qld 4680

17878 144533 David E Woodley Lot 22 RP 130224 RA 779 700 3 1669.96 555.56 2225.52
C/- 38 Viscount Drive 9 Devaney Street
Tallai Qld 4213 Macleay Island

23885 157825 Brian E Streater Lot 148 RP 124451 RA 513 2000 4 3649.05 1075.38 4724.43
Jenene M Streater 7 Kennedy Avenue
44 Malvern Street Russell Island
Panania NSW 2213

1
Dated at Cleveland this
6 August 2003
…………………………………………………… ………………………………….
Susan A Rankin - Chief Executive Officer Donald H Seccombe – Mayor
REDLAND SHIRE COUNCIL
54

Assess Land Registered Proprietor Description of Land Zoning Area U.C.V. Years Rates Interest Total
No. No. Address on Council & Location M2 $ Overdue To to $
Records 30.06.03 30.06.03

23987 158167 John E Greig Lot 225 RP 124451 RA 513 2000 4 3874.13 709.68 4583.81
Nathan J Greig 8 Burke Avenue
44 Galeen Drive Russell Island`
Burleigh Waters Qld 4220

23997 158303 Anna-rose Wurfel Lot 278 RP 124451 RA 513 2000 4 3793.98 1231.75 5025.73
456 River Bend Road 19 Cunningham Avenue
Great Falls VA 22066 Russell Island
United States of America

24009 158456 Adrian J Burns Lot 262 RP 124451 RA 513 2000 4 3863.3 1272.35 5135.88
7 Upland Road 51 Cunningham Avenue
Strathmore Vic 3041 Russell Island

24050 158168 Anthony C Tysoe Lot 175 RP 124451 RA 526 2000 4 3580.80 1092.89 4673.69
5/16 Kennedy Street 3 Ash Street
Mackay Qld 4740 Russell Island

24051 158116 Michael J Day Lot 174 RP 124451 RA 521 2000 4 3793.98 1231.66 5025.64
15 Bentham Street 1 Ash Street
Mount Gravatt Qld 4122 Russell Island

24128 158414 David Meneely Lot 386 RP 123998 RA 797 1300 3 3067.90 654.87 3722.77
167 Henson Roaad 31 Bauhinia Drive
Salisbury Qld 4107 Russell Island

2
Dated at Cleveland this
6 August 2003
…………………………………………………… ………………………………….
Susan A Rankin - Chief Executive Officer Donald H Seccombe – Mayor
REDLAND SHIRE COUNCIL
54

Assess Land Registered Proprietor Description of Land Zoning Area U.C.V. Years Rates Interest Total
No. No. Address on Council & Location M2 $ Overdue To to $
Records 30.06.03 30.06.03

24220 158745 Warren J Smith Lot 73 RP 132856 RA 607 1400 3 3154.44 827.83 3982.27
Julie H Smith 77 Glendale Road
15 Hewlings Street Russell Island
Shirley
Christchurch
New Zealand

24228 158848 Kaen M Moleta Lot 29 RP 132855 RA 607 1500 3 2881.41 719.32 3600.73
‘Rock Glen’ Packard Road 143 Glendale Road
SMBI Takaka Russell Island
South Island
New Zealand

24304 159082 Bruce W Evans Lot 117 RP 118722 RA 582 1100 3 2509.50 517.09 3026.59
Paula S Evans 50 Chackill Avenue
SMBI 43 Donegal Crescent Russell Island
Greenswood
Napier
New Zealand

24308 159279 Glen W McStay Lot 112 RP 118722 RA 630 1100 4 3793.98 1243.67 5037.65
Alison C McStay 40 Chackill Avenue
SMBI Churton Park Russell Island
Wellington
New Zealand

3
Dated at Cleveland this
6 August 2003
…………………………………………………… ………………………………….
Susan A Rankin - Chief Executive Officer Donald H Seccombe – Mayor
REDLAND SHIRE COUNCIL
54

Assess Land Registered Proprietor Description of Land Zoning Area U.C.V. Years Rates Interest Total
No. No. Address on Council & Location M2 $ Overdue To to $
Records 30.06.03 30.06.03

24310 159322 Charles E Crombie Lot 110 RP 118722 RA 574 1100 3 2980.93 737.32 3718.25
Lot 8 Old Bangalow Road 36 Chackill Avenue
SMBI Byron Bay NSW 2481 Russell Island

24549 160282 Bradley R Court Lot 257 RP 122551 RA 582 1400 3 2939.42 715.23 3654.65
10 Nimrud Street 24 Cassandra Avenue
SMBI Southport Qld 4215 Russell Island

24727 160434 Vicki M Bennett Lot 218 RP 122549 RA 582 1600 4 2679.50 1099.64 3779.14
33 Highfields Road 12 Victoria Avenue
Highfields Qld 4352 Russell Island

24728 160393 Janette A Lingard Lot 221 RP 122549 RA 584 2000 4 3580.80 1074.37 4655.17
C/- Mrs D Savage 10 Victoria Avenue
SMBI 48 Loop Road Russell Island
Lower Beechmont Qld 4211

25320 157783 John Avramidis Lot 151 RP 133629 RA 546 1300 3 2724.48 612.68 3337.16
21 Percy Street 13 Bangalow Street
SMBI Balwyn Vic 3103 Russell Island

25356 158538 Patrick F Leung as Trustee Lot 45 RP 133628 RA 546 1700 3 3154.43 827.78 3982.21
Ms Kimerley 6 Binburra Street
SMBI 6/26 Amelia Street Russell Island
Coorparoo Qld 4151

4
Dated at Cleveland this
6 August 2003
…………………………………………………… ………………………………….
Susan A Rankin - Chief Executive Officer Donald H Seccombe – Mayor
REDLAND SHIRE COUNCIL
54

Assess Land Registered Proprietor Description of Land Zoning Area U.C.V. Years Rates Interest Total
No. No. Address on Council & Location M2 $ Overdue To to $
Records 30.06.03 30.06.03

25404 158610 Kevin J Blunt Lot 3 RP 133628 RA 612 1200 3 3154.44 827.76 3982.20
State Highway 63 3 Coolabah Street
SMBI RD1 Blenheim Russell Island
New Zealand

25417 158013 Bernard J Van Der Heyden Lot 15 RP 131859 RA 607 1700 3 2939.46 715.38 3654.84
PO Box 78 14 Bilbungra Street
Bondi Junction NSW 1355 Russell Island

25496 158732 Warren D Ryan Lot 66 RP 132856 RA 597 1500 4 3811.42 1235.12 5046.54
97 Coish Avenue 99 South End Road
Benalla Vic 3672 Russell Island

25536 158601 Richard E Walters Lot 122 RP 132856 RA 653 1400 3 2741.10 619.98 3361.08
Ruth Walters 12 Susan Street
10 Killarney Court Russell Island
McGraths Hill NSW 2756

25564 158746 Terence Turton Lot 98 RP 132856 RA 594 1300 3 3154.44 827.71 3982.15
Brian Greaves 3 Lucy Street
54 Beresford Avenue Russell Island
Beresfield NSW 2322

5
Dated at Cleveland this
6 August 2003
…………………………………………………… ………………………………….
Susan A Rankin - Chief Executive Officer Donald H Seccombe – Mayor
REDLAND SHIRE COUNCIL
54

Assess Land Registered Proprietor Description of Land Zoning Area U.C.V. Years Rates Interest Total
No. No. Address on Council & Location M2 $ Overdue To to $
Records 30.06.03 30.06.03

25574 158816 Stuart A Buckland Lot 35 RP 132855 RA 832 1400 3 2939.46 715.34 3654.80
Noelene L Buckland 4 Simpson Drive
SMBI Ponsonby Crest Russell Island
7/1A Picton Street
Ponsonby, Auckland
New Zealand

25623 156191 Peter W Robinson Lot 126 RP 132640 RA 574 1500 3 2724.48 611.93 3336.41
12 O’Sullivan Place 17 Nautilus Parade
Wanneroo WA 6065 Russell Island

25652 156132 Bruce Carter Lot 117 RP 132640 RA 572 1400 3 3039.46 743.09 3782.55
PO Box 1015 6 Phillips Road
Penrith NSW 2751 Russell Island

35170 156894 Katherine S M Locke Lot 52 RP 129103 RA 548 2000 4 3384.06 963.06 4347.12
1A Bates Avenue 38 Waikiki Beach Road
Paddington NSW 2021 Russell Island

35234 155893 Daniel P O’Halloran Lot 86 RP 132640 RA 546 1200 3 2724.48 610.26 3334.74
C/- PO Box 157 5 Lansell Avenue
Cohuna Vic 3568 Russell Island

35248 158937 Paul A Monger Lot 109 RP 124430 RA 592 1100 3 2888.45 560.77 3449.22
C/- Brad Jones 8 Toronardo Drive
SMBI 118 Mountain Street Russell Island
Mount Gravatt Qld 4122
6
Dated at Cleveland this
6 August 2003
…………………………………………………… ………………………………….
Susan A Rankin - Chief Executive Officer Donald H Seccombe – Mayor
REDLAND SHIRE COUNCIL
54

Assess Land Registered Proprietor Description of Land Zoning Area U.C.V. Years Rates Interest Total
No. No. Address on Council & Location M2 $ Overdue To to $
Records 30.06.03 30.06.03

35268 155846 Ronald D Butel Lot 87 RP 132640 RA 546 1100 3 3154.44 826.14 3980.58
19 Timothy Street 3 Lansell Avenue
SMBI Moorooka Qld 4105 Russell Island

35282 159007 Remon Kizana Lot 71 RP 124430 RA 546 1100 3 3154.44 826.10 3980.54
41 Gibbs Street 31 Tall Wood Drive
SMBI Auburn NSW 2144 Russell Island

35494 158801 John W Blaine Lot 11 RP 124430 RA 536 1100 4 3863.53 1270.72 5134.25
Joan B Whittington 86 Glendale Road
SMBI 66-86 Siganton Drive Russell Island
Oxenford Qld 4210

35497 158785 Anthony R Kelly Lot 4 RP 124430 RA 546 1200 3 2806.27 626.40 3432.67
Angela E Kelly 72 Glendale Road
SMBI 51 Langford Drive Russell Island
Kariong NSW 2250

35624 158812 Graeme G Gordon Lot 56 RP 124430 RA 546 1100 3 3154.44 827.04 3981.48
59 Collingwood Drive 29 Shandoss Avenue
SMBI Collingwood Park Qld 4301 Russell Island

36123 157650 Howard J Brown Lot 24 RP 131859 RA 541 1200 3 2724.48 611.08 3335.56
Anne M Brown 19 Yara Street
SMBI PO Box 92 Russell Island
Seymour Vic 3661

7
Dated at Cleveland this
6 August 2003
…………………………………………………… ………………………………….
Susan A Rankin - Chief Executive Officer Donald H Seccombe – Mayor
REDLAND SHIRE COUNCIL
54

Assess Land Registered Proprietor Description of Land Zoning Area U.C.V. Years Rates Interest Total
No. No. Address on Council & Location M2 $ Overdue To to $
Records 30.06.03 30.06.03

36203 156888 Susan C Locke Lot 51 RP 129103 RA 556 2000 4 3384.06 963.16 4347.22
Nicholas C Locke 36 Waikiki Beach Road
1A Bates Avenue Russell Island
Paddington NSW 2021

37489 155714 Belinda Little Lot 328 RP 132642 RA 534 1800 4 3580.80 1091.38 4672.18
Michael A Little 9 Abalone Avenue
SMBI Round Mountain Road Russell Island
Laravale Qld 4285

37770 157902 Gary E Ingle Lot 212 RP 133118 RA 546 1400 3 2939.46 713.62 3653.08
Lot 25 Thompson Road 33 Lagoon Road
SMBI Kallangur Qld 4503 Russell Island

37813 157777 Reginald Walker Lot 235 RP 133118 RA 663 1300 3 3105.12 800.42 3905.54
20 Clipper Street 53 Lagoon Road
Bribie Island Qld 4507 Russell Island

37859 155740 Thomas Dalgas Lot 354 RP 132642 RA 534 1900 4 3743.55 1194.98 4938.53
52 Highcrest Drive 9 Turana Avenue
SMBI Browns Plains Qld 4118 Russell Island

37943 157663 Arthur J Dimond Lot 239 RP 133118 RA 683 1500 3 2956.08 722.47 3678.55
Elfriede Dimond 32 Kirribin Street
27 Anebo Avenue Russell Island
Summerland Point 2259

8
Dated at Cleveland this
6 August 2003
…………………………………………………… ………………………………….
Susan A Rankin - Chief Executive Officer Donald H Seccombe – Mayor
REDLAND SHIRE COUNCIL
54

Assess Land Registered Proprietor Description of Land Zoning Area U.C.V. Years Rates Interest Total
No. No. Address on Council & Location M2 $ Overdue To to $
Records 30.06.03 30.06.03

37964 158682 Romulo L Umali Lot 112 RP 132856 RA 653 1300 3 2549.48 534.53 3084.01
Christy R Umali 51 Simpson Drive
PO Box 976 Russell Island
Mount Gravatt Qld 4122

38006 158565 Winston J R Anspach Lot 88 RP 132856 RA 607 1700 4 3580.80 1092.25 4673.05
Susanne M M Anspach 6 Kay Street
PO Box 395 Russell Island
Kingston-on-Murray 5331

38754 157619 Patricia I A Claridge Lot 221 RP 133118 RA 546 1600 4 3793.98 1230.07 5024.05
8 Gasnier Street 3 Rodds Road
Chuwar Qld 4305 Russell Island

38759 157854 John Niessink Lot 396 RP 133121 RA 559 1100 3 2509.50 515.54 3025.04
Anthony E Lehane 76 Lagoon Road
Beverley C Amott Russell Island
65 Lincoln Road
Essendon Vic 3040

38897 157890 Kenneth P Cox Lot 400 RP 133121 RA 531 1100 3 3124.48 710.98 3835.46
Charlotte N Cox 68 Lagoon Road
35 Crest Street Russell Island
Mount Gravatt Qld 4122

9
Dated at Cleveland this
6 August 2003
…………………………………………………… ………………………………….
Susan A Rankin - Chief Executive Officer Donald H Seccombe – Mayor
REDLAND SHIRE COUNCIL
54

Assess Land Registered Proprietor Description of Land Zoning Area U.C.V. Years Rates Interest Total
No. No. Address on Council & Location M2 $ Overdue To to $
Records 30.06.03 30.06.03

39789 157117 Darren S Zuberman Lot 341 RP 133120 RA 513 1700 4 4544.79 1457.28 6002.07
828 Hamton Street 33 Stradbroke Drive
Brighton Vic 3186 Russell Island

39847 153620 Thomas C Duncan Lot 401 RP 128020 RA 536 1800 4 3580.80 1091.33 4672.13
Dorna K Duncan 65 Cougal Drive
SMBI Avocado Acres Russell Island
PO Box 44
Childers Qld 4660

39965 157039 Robert V Letizia Lot 380 RP 133120 RA 546 1500 4 3580.80 1104.00 4684.80
Theresa M Letizia 8 Boronia Avenue
SMBI 15 Maidstone Avenue Russell Island
Parkwood Qld 4214

40053 157225 Neville G Brennan Lot 346 RP 133120 RA 513 1700 4 3367.62 955.51 4323.13
25 Muirhead Street 43 Stradbroke Drive
Calamvale Qld 4116 Russell Island

40260 158378 John S McGee Lot 139 RP 132856 RA 653 1400 4 3793.98 1231.01 5024.99
Judith E McGee 12 Sonia Street
4/2 Dunlop Court Russell Island
Mermaid Waters Qld 4218

10
Dated at Cleveland this
6 August 2003
…………………………………………………… ………………………………….
Susan A Rankin - Chief Executive Officer Donald H Seccombe – Mayor
REDLAND SHIRE COUNCIL
54

Assess Land Registered Proprietor Description of Land Zoning Area U.C.V. Years Rates Interest Total
No. No. Address on Council & Location M2 $ Overdue To to $
Records 30.06.03 30.06.03

40291 151744 Ian Skelton Lot 190 RP 124437 RA 548 1900 4 3892.08 1288.76 5180.84
Unit 5 53 Woodlands Circuit
72 Primrose Parade Russell Island
Wynnum West Qld 4178

40596 157162 Kathryn G Langley Lot 343 RP 133120 RA 513 1700 4 4007.14 1381.47 5388.61
Margaret A Langley 37 Stradbroke Drive
6 Franklin Street Russell Island
Nundah Qld 4012

40963 157099 George Vassilopoulos Lot 340 RP 133120 RA 513 1700 4 4057.14 1387.30 5444.44
Anastasia Vassilopoulos 31 Stradbroke Drive
PO Box 1458 Russell Island
Doncaster East Vic 3109

41976 157393 Ram Gopal Lot 321 RP 129107 RA 549 2000 4 3863.36 1270.55 5133.91
3 Wayne Place 7 Shore Street
Mt Roskill Russell Island
Auckland
New Zealand

44149 158852 Karen M Moleta Lot 28 RP 132855 RA 604 1400 3 2881.41 717.84 3599.25
“Rock Glen” Packard Road 145 Glendale Road
SMBI Takaka Russell Island
South Island
New Zealand

11
Dated at Cleveland this
6 August 2003
…………………………………………………… ………………………………….
Susan A Rankin - Chief Executive Officer Donald H Seccombe – Mayor
REDLAND SHIRE COUNCIL
54

Assess Land Registered Proprietor Description of Land Zoning Area U.C.V. Years Rates Interest Total
No. No. Address on Council & Location M2 $ Overdue To to $
Records 30.06.03 30.06.03

44686 159456 Christopher Holt Lot 132 RP 118722 RA 597 1800 4 3580.79 1090.98 4671.77
Katrina Smith 5 Loowa Avenue
SMBI 121 Snapper Street Russell Island
Scarness Qld 4655

46305 156638 Supranee Pareeya Lot 147 RP 132794 RA 546 1100 4 2684.63 1098.90 3783.53
63 Kingston Street 3 Teemangum Drive
Haberfield NSW 2045 Russell Island

46835 156511 Steven R Smith Lot 236 RP 132795 RA 546 1800 4 3793.98 1229.56 5023.54
3 Coronation Grove 14 Tomewin Road
SMBI Cambridge Gardens 2747 Russell Island

46902 151535 Tropical Resource Lot 136 RP 124437 RA 546 1800 4 3793.98 992.23 4786.21
Management Pty Ltd 24 Romford Crescent
SMBI C/- Mr G C Gibson Russell Island
PO Box 228
Clifton Beach Qld 4879

47258 156548 Keun I Son Lot 366 RP 132796 RA 584 2000 4 4488.98 1404.72 5893.70
Young R Son 9 Medika Drive
11 Orange Street Russell Island
Hurstville NSW 2220

12
Dated at Cleveland this
6 August 2003
…………………………………………………… ………………………………….
Susan A Rankin - Chief Executive Officer Donald H Seccombe – Mayor
REDLAND SHIRE COUNCIL
54

Assess Land Registered Proprietor Description of Land Zoning Area U.C.V. Years Rates Interest Total
No. No. Address on Council & Location M2 $ Overdue To to $
Records 30.06.03 30.06.03

49275 157709 Steven Z Slezak jnr Lot 127 RP 133117 RA 546 1100 4 3619.04 1108.24 4727.28
Steven Slezak 35 Karangi Drive
SMBI Unit 2 Russell Island
223 Balwyn Road
Balwyn North Vic 3104

49712 157625 Mark E Dorrington Lot 129 RP 133118 RA 546 1400 4 3277.31 785. 4062.31
37 Tudor Street 3 Pennies Road
SMBI Bourke NSW 2840 Russell Island

49721 157526 Raewyn J Paris Lot 131 RP 133118 RA 546 1400 4 3616.30 1106.28 4722.58
Martin R Paris 7 Pennies Road
SMBI 20 Mary Street Russell Island
Port Chalmers
Dunedin Otago
New Zaland

49865 157034 Joo H Lim Lot 92 RP 129105 RA 556 2000 4 3881.62 1281.87 5163.49
Peng S Ho 51 Rumbin Street
30 Jalan Emos Urai Russell Island
Singapore
Total: $282,649.41

13
Dated at Cleveland this
6 August 2003
…………………………………………………… ………………………………….
Susan A Rankin - Chief Executive Officer Donald H Seccombe – Mayor
CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

1.2 ASSET MANAGEMENT POLICY AND STRATEGY


File No: 2528
Attachment: Policy & Strategy Document
Responsible Officer Name: Greg Jensen
Manager Performance and Risk
Author Name: John Hunter
Senior Adviser Asset Management Coordination

EXECUTIVE SUMMARY
The policy and strategy supports a Total Asset Management (TAM) approach to
managing Redland Shire Council’s non-current assets. This report recommends the
adoption of the policy and strategy. The requirement for the policy and strategy has
arisen from the need to implement a strategic approach to asset management to allow
Council to better manage risk and obtain efficiencies that allow enhanced value for
money in the delivery of services. The benefits of having this strategy are:

• Integrates consistent asset management practices within the lifecycle of an asset.


• Encourages efficiencies in asset management techniques.
• Allows open and accountable practices.
• Facilitates the process to extract fuller cost recoveries for assets.
• Aligns and provides a balancing mechanism between the service levels required and
the asset’s capacities.
• Focuses on the maintenance of existing assets rather than acquiring new assets, and
• Condenses several existing guidelines on asset management into one strategy.

The Performance and Risk Group within Council has developed this strategy. Comments
received have been discussed with the Groups that may be affected by this policy.

The benefits of the policy and strategy are:

• Optimising processes for asset creation, operation, maintenance and disposal and to
facilitate the continuous improvement of asset management practices.
• Undertaking long term planning for assets in consideration of the benefits and costs to
the present and future community and their ability to pay.
• Pricing services to reflect their full value, including asset-holding costs.
• Improving the reporting ability on asset management, and
• Focusing on the areas of inefficiencies, capacities and addressing the high cost and
high risk elements within an asset lifecycle.

This report recommends that Council adopts policy POL-2528.


PURPOSE
The purpose of this report is to recommend that Council adopt policy, POL-2528 Asset
Management and Asset Management Strategy.

Page 7
CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

BACKGROUND
• It is recognised in industry and Government the development of asset management
strategies provides enhanced opportunities to deliver improved efficiencies.
• The Group Manager, Performance and Risk recognised the need to adopt a
consistent approach to asset management in consultation with other managers. He
facilitated the preparation of the plan and supported the consultation with other
Groups in developing individual asset management plans.
• Under the Policy Review Schedule, the Asset Management Policy was listed for
development, and
• Many SE Queensland Councils have commenced and are using similar asset
management strategies.

ISSUES
Type of Strategy chosen for the size of the organisation
The asset lifecycle approach strategy was chosen for RSC. This allows for cost and
efficiency issues to be reviewed at various stages for an asset’s lifecycle. These stages
are acquisition, operations, maintenance and disposal.

Simplicity of being able to oversee asset management strategies


The four stages of the asset lifecycle are distinct and in some cases managed by different
Groups. This will allow a focus to be directed to each lifecycle segment and facilitate
interaction among the Groups to enhance the overall management for assets.

Implementation and Rollout


• The asset management plan has been discussed widely with the major Groups in
RSC. An overarching framework for the TAM Plan will be developed by the
Performance & Risk Management Group and individual Groups will prepare their own
plans that focus upon the issues they face.
• The integration of training requirements as well as WH&S and risk management
principles will be imbedded in the TAM plan and the individual asset management
plans will need to address all issues in a holistic approach.

Acceptance of the Total Asset Management Plan across all Groups


It is widely acknowledged by the major asset owners and maintainers in RSC that the
adoption of a TAM Plan is essential. RSC has approximately $1.25 billion in non-current
assets. The cost of owning and maintaining this asset base is significant and the
implementation of commercially accepted business principles is required.

Redland Water and Waste have prepared a Total Asset Management Plan & Strategic
Asset Management Plan for their Group. While this is a quality document, the TAM Plan
is more specific to asset management. Accordingly, the TAM Plan will be adopted utilising
the principles in the document via a lifecycle approach to asset management.

RELATIONSHIP TO CORPORATE PLAN


This policy supports Council’s Corporate Plan 2002-2006 Financial Management
objective 2.1 “To manage the corporate assets that support the operational objectives of
the organisation”. This primarily supports Council’s strategic priority to ensure the long-
term financial viability of the Shire and provide public accountability in financial
management.

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CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

FINANCIAL IMPLICATIONS
There will be additional resources redeployed to prepare the asset management plans,
but overall there will be no initial major cost impacts. Dependent upon the strategies that
will be adopted by Groups, there may be additional costs of implementation. This will be
an important role for each Group to assess and to determine the cost impacts via a cost-
benefit analysis. It is recognised that improved asset management and planning
enhances maintenance procedures and leads to improved asset utilisation that in turn
reduces costs and minimises the need for capital expenditure.

CONSULTATION
The following Groups have been consulted - Owners of significant business activities,
Redland Water and Waste, Corporate Asset Management, Operations & Maintenance
Group, Organisational Planning Group, Community & Social Planning, Information
Management, Infrastructure Development and members of Financial Services Group.
OPTIONS
PREFERRED
That Council resolve to adopt:

1. Policy document Corporate POL-2528 Asset Management; and

2. The Asset Management Strategy.

ALTERNATIVE
That Council does not adopt the Total Asset Management Plan and each Group prepares
their own plan that is not coordinated centrally.

OFFICER’S/COMMITTEE RECOMMENDATION
Moved by: Cr Seccombe
Seconded by: Cr Ross

That Council resolve to adopt:


1. Policy document Corporate POL-2528 Asset Management; and
2. The Asset Management Strategy.

CARRIED

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Corporate POL-2528
Asset Management

Head of Power
This policy supports Council’s Corporate Plan 2002-2006 Financial Management,
objective 2.1 “To manage the corporate assets that support the operational
objectives of the organisation”; and The Local Government Finance Standards 1994
relating to asset management.

Policy Objective
To manage the assets of Redland Shire Council on behalf of our community to meet
the present and plan for future service levels in a cost-effective manner.

Policy Statement
Council is committed to:
1. Developing Total Asset Management and Group Asset Management Plans to
optimise processes for asset creation, operation, maintenance and disposal, and
to facilitate the continuous improvement of asset management practices.
2. Creating or acquiring assets where the need is greatest and where the need
cannot be met by existing facilities or other service providers.
3. Implementing a lifecycle approach to all asset management decisions to manage,
report performance and to account for costs and benefits over the asset’s life.
4. Undertaking long term planning for assets in consideration of the benefits and
costs to the present and future community and their ability to pay.
5. Engaging the community in decisions to create significant community assets.
6. Providing training and resources to adequately manage assets and to comply
with legislative requirements including Occupational Health and Safety.
7. Pricing services to reflect their full value, including asset-holding costs.
8. Fulfilling the guidelines contained in the attached Asset Management Strategy.

Approved: Issue Date:


Edition:
Revision Status:
Page: 1 of 1
ASSET MANAGEMENT
STRATEGY

Page 1
Page 2
TABLE OF CONTENTS

1. INTRODUCTION.......................................................................................4
2. THE ASSET LIFE CYCLE ........................................................................4
2.1 Asset Planning .....................................................................................6
2.2 Asset Creation / Acquisition ...............................................................7
2.3 Asset Operations .................................................................................8
2.4 Asset Maintenance...............................................................................8
2.5 Asset Condition / Performance...........................................................9
2.6 Asset Rehabilitation / Replacement .................................................10
2.7 Asset Disposal / Rationalisation.......................................................11
2.8 Financial Management.......................................................................11
3.0 AUDIT AND REVIEW ..........................................................................15
4.0 RISK MANAGEMENT .........................................................................16
5.0 TOTAL ASSET MANAGEMENT PLANS ............................................16
6.0 DATA MANAGEMENT ........................................................................17
7.0 ASSET GROUPS AND RESPONSIBILITIES......................................18

Page 3
1. INTRODUCTION

An asset can be generalised as something owned and/or maintained by Council that


is expected to provide benefits to the community for a period in excess of 12 months
its date of purchase, construction or on maintenance date.

Local Government is guided by specific legislation that focuses on asset


management and the Local Government Finance Standards 1994 stipulates how
councils are to manage their assets. Non compliance with the Standard would result
in an audit qualification to financial statements. Compliance with the Standard should
be the minimum level of asset management. Council should introduce practices to
demonstrate it exercises duty of care in all asset management activities.

Redland Shire Council (RSC) has recognised the significance of asset management
through its Corporate Plan. Under the strategic priority “Financial Management’,
objective 2.1 states, “To manage the corporate assets that support the operational
objectives of the organisation.” In addition, a Program has been developed named
“Asset Management” which is described – “Develop and implement plans and
programs for asset creation, operation, maintenance, replacement, disposal and
performance monitoring to ensure the desired level of service and other operational
objectives are achieved at optimum cost.”

The development of an Asset Management Strategy is the key to managing assets


throughout the lifecycle from acquisition to disposal. It is part of an overall framework
for managing assets that includes an Asset Management Policy, Asset Management
Strategy, Total Asset Management Plan and individual Asset Management Plans.

With the implementation of this strategy, Council will be in a position to develop and
implement a Total Asset Management Plan and individual Asset Management Plans.

Asset management requires RSC to shift its focus to funding services and facilities
that are sustainable in the long term. This shift requires a more rational approach to
capital acquisition and renewal and the adoption of a risk - management approach to
asset management and the need for business driven maintenance.

A number of steps must be undertaken if asset management is to be a valuable tool


and to form the basis for the Asset Management Strategy for RSC. The steps occur
in logical sequence and failure to undertake any step may result in poor decision
making and sub-optimal performance of the asset and service delivery or adverse
cost impacts. RSC will use the “Asset Life Cycle” approach as a basis for its
approach to asset management.

2. THE ASSET LIFE CYCLE

This considers all management options and strategies as part of the asset life cycle.

To effectively manage and make decisions about assets, the asset life cycle
approach must be used. This will ensure that all available information and financial
implications are understood and considered, and that the longer-term or whole of life
asset cost and management implications can be realised rather than focusing on the
short term cost and implications of the creation/acquisition of the asset alone.

Page 4
ASSET LIFE CYCLE

Community Community
Demand
Demand Asset
Processes

Asset
Knowledge
Asset Planning Asset
(Section 2.1) Systems

Asset Management Audit / Asset Creation


Review / Acquisition
(Section 2.9) (Section 2.2)

Financial
Management Asset
(Section 2 8) Operations
Minimised (Section 2.3)
Lifecycle
Costs

Asset Disposal /
Rationalisation Asset
(Section 2.7) Maintenance
(Section 2.4)

Asset Rehabilitation /
Replacement Asset Condition /
(Section 2.6) Performance
(Section 2 5)

Community Community
Demand Demand

Total Asset Management Plan


(Section 5.0)

Page 5
The life cycle based asset management strategy for RSC is detailed below and
outlines Council’s overall system for managing the assets it holds on behalf of the
community. This strategy will be supported by the attached policy.

2.1 Asset Planning

The goal of asset management is to meet the required level of service in the most
cost-effective way. In this process, Asset Planning is fundamental to the effective
management of assets, as it is the first phase in the asset’s life cycle. It is also an
area where the greatest impact on the life cycle costs for an asset can be minimised.

Asset Planning involves confirming the service that is required by the customer and
ensuring that the proposed asset is the most effective solution to meet the
customer’s needs.

Needs Analysis
Assets should be created only where there is sufficient community demand to
warrant their creation or upgrade. The process for identifying this need will vary
depending on the asset to be created. At one end of the spectrum it may involve the
physical demand placed on the asset eg flow rates that require the upgrade or
creation of a new asset to meet the demand and anticipated demand based on
population projections. At the other end of the spectrum there may be a need to seek
community views about their requirements for assets such as sporting fields, libraries
and cultural facilities. Valid statistical techniques would be required in this type of
information gathering to ensure the need identified is not biased by the sampling
technique or lobbying processes.

Whatever process is used for identifying demand, it must be documented and


capable of rigorous evaluation. This enables comparisons to be made between
assets for future planning processes.

Levels of Service
Demand and customer expectations will provide the basis for levels of service
required from the assets. Much work has already been done in identifying levels of
service through the Corporate Plan and a range of customer surveys. These sources
should be used when identifying levels of service.

The Service Level Agreement process should be used to determine the level of
service the organisation is to provide to the community. This will assist in determining
if there is a need for additional or upgrading of assets to meet the service demand. A
robust review of these documents annually will ensure current information is
available to determine service levels. The Annual Performance Plan for the business
units will also provide for the documentation of service standards.

Examination of all Alternatives


As part of the planning approach, alternatives to asset creation must be considered.
This may be the augmentation of existing assets to meet the new service demand
rather than creating a new asset. It may include demand management practices,
sharing of facilities within Redland or by other levels of government or private sector,
or the use of regional facilities not located within Redland. These will need to be
documented as part of any proposal.

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Additionally, non-infrastructure solutions should be investigated.

Asset planning will be undertaken to ensure that Council has as a minimum a ten
(10) year forecast of its infrastructure requirements.

2.2 Asset Creation / Acquisition

Asset creation/acquisition is recognised when the outlay for the provision or


improvement to an asset can reasonably be expected to provide benefits beyond the
year of outlay. The main reasons for creating an asset are to satisfy or, where
necessary, improve the level of service; provide for new demand from users; or to
provide a commercial return.

Traditionally, the organisation has focused on preliminary costs of asset creation or


acquisition only. However the inclusion of new and contributed assets into the asset
portfolio increases the demand on the maintenance budget, if not immediately then at
some time in the future. It is therefore necessary to evaluate those full life cycle costs
as well.

Cost Projection
Full statements on life cycle costs should be undertaken as part of the evaluation of
asset creation or acquisition. As such, the following costs should be projected:
• Preliminary investigation and feasibility study costs
• Design and construction costs/acquisition costs
• Operating costs
• Recurrent maintenance costs
• Rehabilitation and renewal costs
• Ultimate replacement costs
• Disposal costs
• Depreciation costs*
• Cost of capital
• Risk abatement costs
• Income generating potential (Fees, charges grants etc.)

*Depreciation is a non-cash cost and care must be taken as the cash cost is already
incorporated into the up-front acquisition costs.

To take account of the time value of money, consideration should be given to costing
the asset over its lifecycle via an NPV analysis.

As well as the costs, the expected useful life associated with each component cost
should be stated. The assessment of useful life and associated costs should be
considered to individual component level where those components might be
reasonably expected to generate a need for capital investment sometime in the
future. This enables “whole of life” costs to be determined for the asset. Improved
revenues or longer-term reductions in cost from asset expenditure should be
documented for consideration.

Page 7
All assets will be managed by RSC from a lifecycle perspective. Costs should also
include the assessment of environmental and social costs associated with the asset
and not just the financial costs. These “costs” should be documented. Not all costs
can be quantified financially. In such cases, the advantages and disadvantages
should be documented.

Project Management Approach


Project management is the preferred method for managing asset creation or
upgrading. This process will facilitate clear outcomes, timeframes and costs to be
stated and forms the basis for budget decision making required for funding the asset.
The detail required to manage the project will vary depending on complexity and
more complex projects will require a detailed analysis to allow decisions to be made.

Evaluation of Projects
The RSC ten-year capital works process that is used to develop the annual budget is
the appropriate method to evaluate the various asset creation and upgrade projects
for budget and resource allocation purposes. This will occur on an annual basis with
a rolling ten-year program being developed. New proposals should be evaluated
against all proposals contained in the current ten-year capital works program listing
to ensure that the program remains current and relevant to community needs.

Asset creation and/or acquisition must consider the best use of available funding;
property and other resources, with a view to maximising the value the community
receives through their use.

2.3 Asset Operations

Asset operations refer to the day-to-day running and availability of the asset. It
considers working hours, cleaning, and qualifications needed for operation, energy
management, programming of down time, etc. It refers primarily to dynamic assets
such as motor vehicles, plant, machinery and equipment but can provide information
on strategies for all asset operations. For the short-lived dynamic class of assets, the
operational and upkeep costs (including recurrent maintenance expenditure)
represent a significant proportion of the total life cycle costs. Therefore, the day-to-
day efficiencies with which operations are carried out are critically important in
minimising the overall life cycle cost of the asset.

The operations costs must be factored into the total asset management plan. They
will be budgeted for annually. Implementing efficiencies in asset operations is the
responsibility of the asset agents. Benchmarking against similar assets internally and
with other service providers will assist in this process.

2.4 Asset Maintenance

Maintenance functions include any work undertaken on an asset that preserves its
material and/or safe condition and to ensure it provides service potential for at least
the extent of its useful life.

To achieve this, the developed maintenance regime needs to be both regular and
appropriate. Implementation of a structured maintenance plan can lower the long-
term total life cycle costs of an asset and thereby greatly increase the efficiency of its

Page 8
performance. It can improve public perception of the organisation’s service and
safety standards. Maintenance planning and application also helps to preserve an
asset’s value.

Development of Maintenance Plans


A method of changing the organisation from reactive maintenance to a more pro-
active mind-frame is through the development of ongoing maintenance plans. To
assist with the implementation and updating of these plans, condition inspections will
be required. Some may be annual, others more frequent and some at longer
intervals.

These will need to be scheduled based on the asset class and also an assessment of
the risks associated with that asset not being adequately maintained. The Total Asset
Management Plan (TAMP) will be used as a basis for scheduling condition
inspections.

Asset maintenance should be based on a cost benefit approach to ensure that the
asset is meeting service requirements without excessive maintenance expenses. The
level of maintenance priority should be reflected by the asset’s ability to deliver on
the organisations strategic priorities and customer service standards. The effects of
failure due to inadequate maintenance must be considered when prioritising
maintenance budgets and programs amongst all asset classes.

Maintenance Types
There are two types of maintenance that must be considered. Planned maintenance
that includes preventive, predictive, servicing and corrective maintenance and
Unplanned maintenance that may includes repair, redesign and modification.

RSC will develop planned maintenance programs for all its asset classes. It will use
these to establish budgets for maintenance on an annual basis. Funding for
unplanned maintenance will also be required on an annual basis.

Software Tools
The use of software tools will be required to assist in maintenance planning. The
asset management software systems in use by RSC will be reviewed to establish
their capability for this purpose. RSC will also devote resources to maintenance
planning to ensure the planned maintenance is performed and cost effective.

2.5 Asset Condition / Performance

All management decisions regarding maintenance, rehabilitation, renewal and


service delivery revolve around the condition and performance of assets. Having a
clear knowledge of these aspects will limit Council’s exposure to business risks and
potential loss of service potential caused by premature failure of assets. It will also
allow for timely application of maintenance to be undertaken.

Condition and Performance Monitoring


By undertaking regular condition and performance monitoring exercises, life cycle
strategies including maintenance and/or rehabilitation options can be determined,
updated and refined. Ultimately, replacement programs can be more accurately
predicted and planned.

Page 9
If failure is imminent, asset managers will have had sufficient time to look at options
other than replacement. Additionally they will be able to manage the failure and
minimise some of the consequences. The performance of assets is closely aligned to
the level of service provided to customers and this can generally be measured in
terms of reliability, availability, capacity and meeting customer demands and needs.

Developing Key Performance Indicators


Key performance indicators are required for each asset class. Reporting against
indicators on a regular basis will improve the decision-making for the asset and it is
more transparent and accountable and visible to the community. Indicators should
cover the asset’s:

• Capacity or utilisation
• Levels of service
• Condition or mortality
• Costs

Establish Systems and Techniques


To assist in condition based assessment or performance, the organisation will
establish systems and techniques to enable reliable comparisons to be made among
similar asset classes. This may involve scientific testing methods or visual
assessment by trained and competent staff. The assessment processes and
standards used will be documented as part of the total asset management plan for
each class of assets.

Benchmarking of assets with similar service providers is seen as a potential method


of moving towards better practices in asset management.

State and Federal Requirements


RSC will need to be aware of any requirements from state or federal governments
that require assessment of its assets in accordance with specified requirements to
obtain future funding. Those RSC staff responsible for obtaining this funding will need
to ensure the organisation is not disadvantaged by any changes in current practices.

2.6 Asset Rehabilitation / Replacement

Decisions taken to rehabilitate/ replace assets are usually associated with potentially
large investments by Council. This is generally because the assets have become
uneconomical to own and operate in their existing state. The measure that indicates
rehabilitation or replacement is their degree of failure to deliver the services in the
manner set down for them.

Asset renewal and rehabilitation refers to capital activities associated with assets that
have been identified through a strategic planning process as requiring a change to
ensure effective service delivery.

Risk Management
Arguably, the most important aspect here is the ability to understand the different
failure modes that each asset may suffer, and then predict when each of these is
likely to take place. Therefore risk management processes should form the
preliminary study of any assets likely to be considered within this plan.

Page 10
It is through the business risk assessment that Council will be better able to assess
the relative merits of, and therefore optimise the decision making process with regard
to the various strategies available through this plan.

Process of Review
As there are limited funds for rehabilitation or replacement, each proposal will be
subject to the same review as if it were for the creation of an asset and will thus have
to compete on its merits. The ten-year capital works budget process will be the way
in which this process is managed. In cases where it is identified assets are to be
replaced, the written down value of those assets should be budgeted as a write-off in
the profit and loss account.

2.7 Asset Disposal / Rationalisation

Asset disposal terminates the use and control of a particular asset, but may generate
the need for a replacement to support the continuing delivery of a service. Decisions
to dispose of an asset require thorough examination and economic appraisal.

Context for Decision Making


Like acquisition decisions, disposals should be undertaken within an integrated
planning framework that takes account of service delivery needs, corporate
objectives, financial and budgetary constraints and the Council’s overall resource
allocation objectives.

Any such decisions must be made in consideration of the Corporate Plan and service
delivery needs of the community.

Options to consider, includes alternative methods of service delivery through other


RSC facilities, providers, levels of government or the private sector. This should
include consideration of regional facilities.

Performance Monitoring
Performance monitoring forms an important part of the decision-making process.
Where assets are under utilised or under performing, an assessment must be made
about continuing to fund the asset.

Where an asset is under utilised, then prior to any decision to construct another
similar asset, the potential for using the existing under utilised asset should be
considered.

2.8 Financial Management

Accurate recording, valuation and reporting procedures are needed so that decisions
to modify, rehabilitate, find alternative use for, or dispose of an asset can be soundly
based. Council Service Areas, if they are to be properly accountable for the
operation, maintenance and financial performance of the assets and services that
they are delivering, must be able to make informed decisions about those assets.
Although some information has to be kept to meet the statutory requirements,
additional data is required as part of good asset management practice.

Page 11
2.8.1 Definition of a Financial Asset

Accountants define an asset as being “ future economic benefits expected from


resources controlled by an entity as a result of past transactions”.

A future economic benefit is defined as the capacity of a thing to provide benefits that
satisfy human wants and needs. Such capacity is seen as service potential.

Ownership and or responsibility for maintenance generally imply control.

The cost of assets constructed or purchased is capitalised. This means that the cost
is set-aside in the balance sheet as opposed to being expensed in the Operating
Statement. When the cost of an asset is capitalised, it is written off against revenue
over a period of time representing the useful life of the asset. This is the period of
time over which the benefit is expected to continue. The write off of this periodic cost
is the depreciation expense of the asset.

2.8.2 Capitalisation Vs Operational Expenditure


Council expenditure is either capital (an asset) or operational. The expense
associated with capital expenditure is deferred and written off over a number of years
(ie. depreciation) whilst operational expenditure is written off in the year it is incurred.
Therefore, it is important that consideration be given to the question of whether
expenditure is capital or operational. Guidelines to assist in determining what
constitutes capital expenditure are available from Financial Services and will be
available in the total Asset Management Plan. Further definitions of capital and
operational expenses will be undertaken to improve categorising costs.

2.8.3 Asset Valuation


Asset values are required to support external financial reporting requirements. In
accordance with AASB 1041 and Finance Standards, assets are required to be
valued at “Fair Value”. Fair Value is defined in AASB 1041 as “the amount for which
an asset could be exchanged, or a liability settled, between knowledgable, willing
parties in an arm’s length transaction”.

Asset Revaluations

The concept of “Fair Value” requires assets to be valued at their current cost.
Therefore, assets must be revalued on a regular basis. As AASB 1041 states “where
a class of non-current assets is measured on the fair value basis, the frequency of
revaluations depends on the frequency and materiality of changes in the fair value of
the assets within that class of non-current assets”. An action plan of when
revaluations need to be undertaken is a logical extension of this requirement. Timing
of the revaluations must allow sufficient time for the information to be entered into the
following year’s budget.

Valuation can also be used for:

• Determining appropriate pricing and funding levels


• Insurance
• Benchmarking
• Asset Management decision making
• Estimating Depreciation

Page 12
Detailed asset information is captured within the supporting databases such as
Maximo and SMEC that are rolled up into Finance One as a total asset value. There
should be regular reconciliations between Finance One and the supporting
databases used to manage the assets, eg Maximo, SMEC, MEX and Fleet Manager.

2.8.4 Depreciation
For accounting purposes, depreciation is a systematic write off of the cost of the
asset over the period in which the benefits of the asset are to be provided.

RSC has traditionally used the straight-line depreciation method based upon useful
lives of assets with no allowance for residual balances in this calculation at present.
This method assumes that assets wear out uniformly over the life of the asset.
Depreciation has historically been calculated over the useful life of the asset-:

Annual Depreciation = Cost of the asset ÷ useful life of asset.

However, Finance Standards have recently changed to allow organisations to select


more appropriate methods to measure the consumption of service potential of the
asset. Condition based depreciation measures the loss of predicted service potential
(consumption) of that asset from year to year. This method would appear a more
appropriate method to record depreciation according to the accretive declining
condition of RSC’s assets and must be reviewed in more detail. This method may
entail significant costs, particularly in collecting the appropriate data and needs to be
further examined for each asset category. Residual balances should also be
considered on a category by category basis.

RSC will review its depreciation methodologies for each class of assets within the
Total Asset Management Plan.

2.8.5 Capital Works / Contributed Assets


The majority of RSC’s new assets or additions to existing assets are constructed
from capital works. A significant portion also comes from contributed assets in the
form of sub-division development (e.g. Roads and Wastewater).

A capital works project may be comprised of a number of assets and is important


from the asset accounting and management perspective, that Council has clear
policies for what constitutes an asset unit. Upon completing a capital works project,
assets are separately identified, and features including costing, useful lives, location,
and the general ledger linkages are assigned. This is the process of capitalising the
asset (or creating the asset / assets in the database).

Until the project is completed for accounting purposes we refer to the accumulating
cost of the project as “work in progress”.

2.8.6 Capitalisation
This is the process of recording the asset in the asset register and accounts of RSC’s
financial management system Finance One. In the case of some databases (SMEC
and MAXIMO), summary accounts exist in Finance One and the bulk of the asset
detail is in the subsidiary databases.

The recording of asset creation is the responsibility of Financial Services. Asset


owners are required to provide information in order to capitalise the asset and / or set

Page 13
up the relevant database’s equipment screen. Procedures to facilitate asset additions
will be implemented in conjunction with user groups.

2.8.7 Long-Term Financial Plans


Each asset class or significant asset will have a long-term financial plans developed
for it. This will include:

! creation and acquisition costs


! finance costs where borrowing is used to fund the asset
! operations costs
! maintenance costs
! refurbishment/renewal costs
! replacement costs
! disposal costs
! depreciation costs
! rate of return required (financial and non-financial) for each class of assets

The plan will be for the life of the asset and include any revenues the asset produces.
They will be updated annually. All costs for the provision of an asset should be
recovered from users of the services that require asset provision. Where there is no
opportunity for direct cost recovery or the Council determines not to fully recover
costs from users, then the balance of the costs must be subsidised from general rate
revenue sources. A clear decision on cost recovery should be made in each
instance.

2.8.8 Asset Classification and the nature of assets in RSC


Accounting Standards require that assets be classified (or grouped), in accordance
with generally accepted accounting principles. Asset grouping is based on like
function or type.

Council has adopted the following asset financial classifications:

♦ Land and Other Improvements


• Land
• Land Improvements

♦ Building
• Buildings
• Other structures

♦ Plant and Equipment


• Plant & Machinery
• Miscellaneous plant & Equipment
• Office Equipment and Furniture
• Fixtures and Fittings
• Computer Hardware
• Computer Software

♦ Other
• Library books (a networked asset)
• Heritage and Arts (a networked asset)
• Bins (a networked asset)

Page 14
♦ Infrastructure Assets
• Parks
• Water
• Wastewater
• Roads
• Stormwater
• Other infrastructure

The asset control account number links financial classification to the general ledger.
The total dollar value of the asset control in the general ledger will equal the total
value of all the assets of that class in the assets register.

Assets can be grouped for any number of reasons in addition to financial


classification and there need not be any relationship between groupings.

Nature of Assets in RSC

Group or Category Examples of Assets

Redland Water Water treatment plants, dams, lagoons,


bores, reservoirs, pumping stations,
buildings, water mains and meters
Redland Waste Waste water treatment plants, pumping
stations, wastewater and effluent mains,
maintenance holes
Roads and drainage Pavement, seal, kerb and channel,
round-about, car parks, fencing, open
drains, headwalls, catchpits, box culverts
and pipes
Parks Paths, playground equipment, sporing
facilities, shelter
Other Internal roads, boat ramps, streetscapes,
seawalls, bridges, bikeways

3.0 AUDIT AND REVIEW

The implementation of an asset management system must be subject to audit and


review. RSC manages significant assets ($1.25 Billion as at 30 June 2002) on behalf
of the community. Audit and review ensures we meet our due diligence requirements.

The audit should be undertaken annually on part of the asset management system
and for a sample of assets. The purpose of the audit is to ensure compliance with the
systems and processes and also the accuracy and validity of the information
contained in the asset management plans, asset register and other data
management systems.

As part of the annual audit program, RSC will establish a rolling audit for all assets
with a representative sample being audited each year. This process will also involve
an assessment of the risk associated with each asset.

Page 15
The Internal Auditor’s Annual Audit program should be used for this purpose.

4.0 RISK MANAGEMENT

Each area responsible for the asset (asset owner) will be required to manage the risk
associated with the asset. A risk management approach consistent with AS
4360:1999 must be used to determine the risks of the asset. Risk management
should commence at the asset planning stage to identify the risks associated with
owning the asset at each phase of the asset’s life cycle to allow risks to be managed.

There may be a reduction in the risk facing the organisation through the creation or
upgrading of the asset. These should also be identified.

Risk Treatment Plans


Where risks are identified, appropriate treatment plans will need to be developed as
part of the management of the asset.
As part of risk assessment, consideration must be made of the risks associated with
the failure of the asset. If significant, an immediate response plan to secure the asset
and prevent any further loss or injury, a business continuity plan to restore basic
service provision, and a disaster recovery plan for full restoration, will be required.

Insurance
Insurance will be arranged for all assets under Council’s Insurance Program. The
Asset Register forms the basis for assets covered by the insurance. Premiums for
the insurance will be recovered from the areas managing the assets. Any losses from
insurance claims will also be recovered from the asset owner or tenant depending on
the nature of the loss.

5.0 TOTAL ASSET MANAGEMENT PLANS

RSC will develop an overarching total asset management plan (TAMP) and the
individual groups will develop Group plans to cover the major assets and asset
systems that are managed.

Redland Water & Waste have a statutory requirement to develop Total Management
Plans and Strategic Asset Management Plans. It is noted this plan is a complying
document required to meet obligations under various Acts. It will not substitute for the
RSC’s TAMP. For example, the RW&W Plan will require additional asset dedicated
information including forward financial figures and tables, benchmarking, capacity,
training, WH&S, maintenance processes and the use of Maximo. There must be a
focus on the management of capacity and maintenance of existing assets.

The RW&W plan is an excellent start, and all Groups will need to comply fully with
the TAMP for assets under their control. The TAMP will set out the requirements for
all asset management plans that need to be developed. General statements common
to all assets may be made by the TAMP to enable consistency in the processes and
administration in the management of all assets.

Page 16
The TAMP will include specific requirements for:

• Service Standards
• Financial Management
• Asset Demand
• Infrastructure Planning
• Asset Evaluation and Renewal
• Maintenance
• Resource Management
• Quality Management
• Loss of Assets
• Purchasing Procedure
• Operating Plans
• Asset Design
• Risk Management
• Asset Performance
• Information Management
• Prioritised List of Actions

6.0 DATA MANAGEMENT

A data management system should be maintained with information relating to all


aspects of asset management. The main software RSC uses is MAXIMO and SMEC,
as this will provide for the majority of functionality required. Other software will be
required to support asset management decisions ranging from a Financial
Management Information System, field data capture tools, other organisational
databases such as MEX, CROW and ESRI GIS plus a 10 yr capital works database.
The previous Asset Improvement Project Team has done considerable work in
detailing Council’s systems, their interdependencies and issues to be addressed to
better manage data about assets.

Capability Review
A review of RSC’s data management capability for its assets needs to be
undertaken. Comparisons to other systems must be considered. The elimination of
multiple systems and duplicated data must be a feature of the review. The review
would be undertaken by RSC using its IM Steering Committee to manage the
process in accordance with corporate priorities.

Any such review must consider a system with the following features:

• Asset register
• Asset accounting
• Maintenance management
• Contract management

Page 17
• Job/resource management inventory control
• Condition monitoring
• Predictive modelling
• Risk assessment
• Lifecycle costing
• Treatment options and costs
• Works planning
• Optimised decision making
• Interfacing and data import/export

Grouping of Assets
Assets will be recorded in a hierarchy to allow assets to be grouped functionally, eg.
stormwater, parks and recreation assets. The assets that make up these groupings
will be individually recorded against an RSC standardised classification system.

Data Accuracy
Fundamentally, data accuracy and currency rests with the asset owner and tenant.

Data Audits
Periodic audits of data will be required to ensure that it complies with any corporate
policies or procedures and to ensure its accuracy.

7.0 ASSET GROUPS AND RESPONSIBILITIES

There are four main roles for asset management within RSC. These are the asset
manager, owner, agent and tenant.

There is currently no one area or individual performing the role of asset manager.
This places Council at significant risk as there is no overall management of assets by
the organisation. The current ad hoc approach has led to significant problems with
asset management and identified by the external auditor as an issue to be
addressed.

The various roles are described below.

• Asset Manager - represents Council’s proprietary interest in assets & focuses on


managing Council’s Balance Sheet including identifying an appropriate return on
assets. The manager would be responsible for coordinating the management of
all of Council’s assets by the asset owners and tenants. This would include
compliance with the Asset Management Policy and Strategy, facilitating
development of TAMP’s/ asset management plans, ensuring regular reporting on
asset performance and consolidating this information for executive management
& Council.

RSC currently has no such position.

• Asset Owner – Holds the asset on behalf of RSC. This position is responsible for
ensuring the overall management of the asset and its continued ability to deliver
services to the required standard to the community. Determining the future
development or disposal of the asset rests with this position. This position is also

Page 18
responsible for capital works programming, budgeting and construction. From a
financial perspective, costs such as depreciation and finance costs are assigned
against the owner. Maintenance costs are also transferred to the owner.

• Asset Agent – This position maintains the asset on behalf of the owner to deliver
services to the community. They are responsible for maintenance of the asset at
its current level so that the service delivery aspects are not diminished and the
value of the asset is maintained.

• Asset Tenant - This position occupies the asset and coordinates activities by the
community that occur within the asset. The tenant may use the agent to provide
services so that they are able to conduct their activities. The agent and tenant
may be the same in some instances.

7.1 Asset Owners and Agent/Tenants

Due to the complexity of the organisation, a number of groups have been identified to
develop and implement Asset Management Plans based on the asset.

NOTE: The following list does not directly mirror the Asset Classification used by
RSC. Redland Water & Waste are managing their assets (Water, Sewer & Waste)
outside of this strategy although they are required to comply with Redland Shire
Council’s Asset Management Policy.

Page 19
Asset Group Name Asset Types Include Asset Owner Asset Agent/ Tenant
Buildings (including Administration, Depots, Amenities Manager Manager Corporate Asset
fittings and fit-out) Corporate Asset Management
Management
Caravan Parks Land, Buildings, Sites, Roads Manager Manager Customer & Community
Customer & Services
Community
Services
Cemeteries Land, Buildings, Roads Manager Manager Customer & Community
Customer & Services
Community
Services
Child Care Building, Furniture, Play Equipment Manager Manager Customer & Community
Customer & Services
Community
Services
Respite Care Facilities Buildings, Furniture, Equipment Manager Manager Customer & Community
Customer & Services
Community
Services
Computer Hardware and PC’s, servers, cable networks, Manager Manager Information Management
Software software Information
Management
Land Unimproved Land, commercial Manager Land Manager Corporate Asset
buildings Use Planning Management
Community Facilities Community buildings Manager Social & Manager Customer & Community
Community Services
Planning
Parks Sporting Facilities and sports fields Community and Manager Operations &
Social Planning Maintenance
Parks (Other) Open Space, Play Equipment, Manager Manager Operations &
Bushland, Environmental Land Environmental Maintenance
Management
Plant & Equipment Fleet, Mobile Plant, Small Plant Manager Manager Corporate Asset
Corporate Asset Management
Management
Quarry Land, Buildings, Fixed and Mobile Manager Manager Operations &
Plant, Roads, Stockpiles Operations & Maintenance
Maintenance
Roads Pavements, Kerbing, Footpaths, Manager Manager Operations &
Bridges Infrastructure Maintenance
Development
Stormwater Underground network system, open Manager Manager Operations &
drainage, canals, Stormwater Quality Infrastructure Maintenance
Devices, Retention Basins Development
Library Books (Networked Books, audio-visual, etc Manager Manager Customer & Community
Asset) Customer & Services
Community
Services
Heritage & Art Paintings, sculpture, artefacts, Manager Manager Customer & Community
museum Customer & Services
Community
Services
Water Land, Dams, Reservoirs, Buildings General Manager General Manager, Redland Water
Redland Water & & Waste
Waste
Land, Disposal Sites, Buildings General Manager General Manager Redland Water
Wastewater Redland Water & & Waste
Waste
Bins (Networked Asset) Refuse & recycling bins for domestic General Manager General Manager Redland Water
collection services Redland Water & & Waste
Waste
Waste Land, Disposal Sites, Buildings General Manager General Manager, Redland Water
Redland Water & & Waste
Waste

Page 20
CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

1.3 REDLAND SHIRE COUNCIL RISK MANAGEMENT POLICY


File: 2485/1
Attachment: Risk Management Policy and Strategy
Responsible Officer Name: Greg Jensen
Manager Performance and Risk
Author Name: Greg Jensen
Manager Performance and Risk

EXECUTIVE SUMMARY
Redland Shire Council operates in an environment where we are exposed to risks on a
continual basis. Processes and systems have been developed over a number of years
through the necessity to manage risks in our operations and decisions. This has largely
occurred on a case by case basis.

To improve our business practices and assist in reducing our risk exposure, Council
needs to systematically manage its risks across its full range of functions. To assist in this
process a policy has been developed that will provide guidance to management and staff
in managing the risks they face. A supporting strategy has also been developed to
provide more detailed guidance as part of an implementation process for the policy.

By coordinating the approach Council improves its opportunities to minimise its


exposures and identify improvement opportunities in its business.

The aims behind introducing Risk Management into Council are threefold:

1. To provide an assurance that the organisation has identified its highest-risk exposures
and has taken steps to properly manage these.

2. To ensure that Council’s corporate planning processes include a focus on areas


where risk management is needed.

3. To establish a process across Redland Shire Council that will integrate the various
risk control measures that Council already has.

By adopting the attached policy and supporting strategy, Council is able to give direction
to staff about how it intends to manage risks.
PURPOSE
The purpose of this report is to recommend that Council adopt Corporate policy, POL-
2701 Risk Management and Risk Management Strategy.

BACKGROUND
Risk is inherent in everything the Redland Shire Council does. In many of Council’s
activities, it is something that we currently manage and control in a variety of ways.
However we do not have a formalised, integrated and visible process to identify risk
exposures across all our activities and to provide us with an assurance that these
exposures are adequately controlled and any gaps are rectified.

Our aim is to achieve best practice in controlling all the risks to which the Redland Shire
Council is exposed. We will achieve this by identifying our priority exposures, addressing
these, incorporating appropriate risk management strategies, risk improvements and

Page 10
CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

contingency planning into our business, monitoring and reviewing ongoing risk to account
for changes in our operations and to enable us to make well-informed decisions on risk
controls.

As the first step of this process, this document outlines the framework for Council’s risk
management. Within this framework, training will provide appropriate tools and practices
for the effective management of risks. The next step will be to build on this framework to
further develop risk management plans for service units and contracted services. Our
challenge is to incorporate risk management into our culture, our everyday business
operations and those of our contractors and business partners.

The Australian Standard 4360 Risk Management is an internationally recognised method


of managing risk. Besides providing tools to assess risk it requires that an organisation
adopt an over arching policy about how it intends to manage risk. Additionally the
Queensland Audit Office has recommended that while Redland Shire Council has many
practices in place to assist it manage its risks it does not have an adopted risk
management policy that provides guidance to the organisation.

ISSUES
Risk is defined as “the chance of something happening that will have an impact upon the
objectives of an organisation. It is measured in terms of consequences and likelihood.”
(AS4360:1999) Risk is usually construed to be negative (i.e. adverse), but it can provide
opportunities for an organisation as well. Risk is inherent in the functions and activities of
Council and its service providers. As the consequences of an adverse event may include
an inability to meet ratepayer and customer requirements, financial loss, organisational or
political embarrassment, operational disruption, legal problems, and so forth, it is
important that management policies, procedures and practices are in place to minimise
Council’s exposure to risk.

Risk Management involves adopting and applying a systematic process to identify,


analyse, evaluate, treat and monitor risk so that it is reduced and maintained within an
acceptable level. Risk Management is a business tool and a part of “good management”
and good planning processes.

The process follows that of the recent Australian Standard on risk management (AS
4360).

Its elements are:

• Establishing the organisational context in which the risk occurs


• Identify the various risks
• Analyse the risks in terms of consequence & likelihood and the existing controls in
place to manage those risks
• Evaluate the risks against the organisational criteria and determine what risks will be
treated or accepted
• Treat the risks through acceptance & ongoing surveillance or developing &
implementing action plans to treat the risk
• Monitor & review the risks and the system in which they are managed
• Ensure communication & consultation occur throughout the process with
stakeholders.

Page 11
CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

Risk Management will assist us to achieve Council’s corporate objectives by:

• Integrating the various risk control measures that Council currently uses into one
holistic view of what Council is doing to minimise its risk exposures. This single view
will show priorities and any gaps that need to be addressed.
• Implementing a visible, formalised and consistent process for managing Council’s
exposures to risk, thereby supporting continuous improvement in Council’s programs
and providing an assurance of more effective outcomes;
• Incorporating identified risk management solutions into planning and administrative
processes resulting in more structured, accountable and effective business planning
and project management;
• Building on existing risk management strategies such as administrative, engineering,
contractual, safety and quality management controls; and
• Encouraging staff and managers to think about risk, and risk management, in their
day to day work, in program, contractor and project management, and in forward
planning activities.

Risk Management will be applied to all Redland Shire Council activities, including those
delivered on Council’s behalf by external service providers and project contractors. This
will help to:

• Ensure that the quality and reliability of services and other program outputs are of a
very high standard;
• Ensure services meet requirements and are delivered within cost and schedule;
• Protect employees, property, information and all other assets; and
• Comply with all legal requirements relative to areas of risk.

RELATIONSHIP TO CORPORATE PLAN


The recommendation primarily supports Council’s strategic priority to effective leadership
through accountable and ethical standards of behaviour.

The adoption of the Risk Management Policy also shows that leadership to the
community in the way we manage our business in their best interests.

FINANCIAL IMPLICATIONS
There are no direct financial implications from adopting this policy. The implementation of
the policy should lead to cost savings in the longer term by reducing Council’s level of
exposure to the risks. Action plans developed out of assessing the risks may require
resources and funds to address the risk. These would be documented and either funded
through existing budgets or form the basis of a budget submission for approval by Council
as part o the usual budget development process.

CONSULTATION
The Risk Management Policy and Strategy was provided to all Groups for comment. The
strategy was approved in principle by the Executive Leadership Group in December
2002. It has also been provided to the Queensland Audit Office as part of their
assessment of how Redland Shire Council manages its risks.

The Policy and Strategy received favourable comment and support from all parties
consulted.

Page 12
CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

OPTIONS
PREFERRED
That Council resolve to adopt:

1. Policy document Corporate POL-2701 Risk Management; and

2. The Risk Management Strategy.

ALTERNATIVE
That Council does not adopt the Corporate POL-2701, Risk Management and the Risk
Management Strategy and each Group manages their risks in an uncoordinated manner.

OFFICER’S/COMMITTEE RECOMMENDATION
Moved by: Cr Elliott
Seconded by: Cr Seccombe

That Council resolve to adopt:


1. Policy document Corporate POL-2701 Risk Management; and
2. The Risk Management Strategy.

CARRIED

Page 13
Corporate POL- 2701

Risk Management

Head of Power
This policy supports Council’s Corporate Plan 2002-2006, strategic priority
“Organisational Leadership”, and objective 1.2 “To ensure that our resources are
used to deliver continuous improvement and best value to the community”.

It also supports requirements of our statutory obligations that Council adopts an


overall policy that demonstrates its commitment to risk management

Policy Objective
To protect Council and its employees against foreseeable risks through developing a
culture of risk awareness, plans that reduce our risk exposure and systems that
provide information to assist in informed decision making.

Policy Statement
Council is committed to:

1. Promoting a culture of awareness and active management of risks


2. Providing regular education of its staff in risk management practices
3. Using generally accepted best practice for managing its risks
4. Regular assessment of its exposure and development of plans to reduce its level
of risk
5. Prioritisation of risks so that resources can be devoted to managing high priority
risks
6. Regular monitoring of its risk management plans to ensure that they are achieved
7. Provision of information and reports to decision-makers so that they are able to
make informed decisions
8. Requiring all staff and stakeholders to assume responsibility for managing risks
within their own areas
9. Developing systems that continually improve our ability to manage risks and
reduce our exposure.

Approved: Issue Date:


Edition:
Revision Status:
Page: 1 of 1
RISK MANAGEMENT
STRATEGY
TABLE OF CONTENTS

EXECUTIVE SUMMARY......................................................................... 4

1. INTRODUCTION ............................................................................. 5
1.1 Purpose Of This Document.......................................................................... 5

1.2 Aims of Risk Management at Redland Shire Council .................................. 5

2. CONTEXT AND BACKGROUND ................................................... 5


2.1 What Is Risk Management?......................................................................... 5

2.2 Why Introduce Risk Management Into Redland Shire Council? .................. 6

3. RISK MANAGEMENT AT REDLAND SHIRE COUNCIL ............... 8


3.1 Concept and Goal........................................................................................ 8

3.2 End Result ................................................................................................... 9

3.3 Approach ................................................................................................... 10

3.4 Element 1: Awareness Training ................................................................. 12

3.5 Element 2: Assessment Framework .......................................................... 13

3.6 Element 3: Assurance................................................................................ 15

4. DEVELOPMENT AND IMPLEMENTATION ................................. 16


4.1 Approach ................................................................................................... 16

4.2 Timeframe.................................................................................................. 17

4.3 Cost Implications ....................................................................................... 17


EXECUTIVE SUMMARY

Risk is inherent in everything the Redland Shire Council does. In many of


Council’s activities, it is something that we currently manage and control in a
variety of ways. However we do not have a formalised, integrated and visible
process to identify risk exposures across all our activities and to provide us
with an assurance that these exposures are adequately controlled and any
gaps are rectified.

Our aim is to achieve best practice in controlling all the risks to which the
Redland Shire Council is exposed. We will achieve this by identifying our
priority exposures, addressing these, incorporating appropriate risk
management strategies, risk improvements and contingency planning into our
business, monitoring and reviewing ongoing risk to account for changes in our
operations and to enable us to make well-informed decisions on risk controls.

As the first step of this process, this document outlines the framework for
Council’s risk management. Within this framework, training will provide
appropriate tools and practices for the effective management of risks. The
next step will be to build on this framework to further develop risk
management plans for service units and contracted services. Our challenge
is to incorporate risk management into our culture, our everyday business
operations and those of our contractors and business partners.

Page 4
1. INTRODUCTION

1.1 Purpose Of This Document

The purpose of this document is to set out a direction for ensuring that Risk
Management is considered and included in the business and operations of Redland
Shire Council (the “Council”), and guidelines for its implementation.

1.2 Aims of Risk Management at Redland Shire Council

The aims behind introducing Risk Management into Council are threefold:

• To provide an assurance that the organisation has identified its highest-risk


exposures and has taken steps to properly manage these.

• To ensure that Council’s corporate planning processes include a focus on areas


where risk management is needed.

• To establish a process across Redland Shire Council that will integrate the
various risk control measures that Council already has.

2. CONTEXT AND BACKGROUND

2.1 What Is Risk Management?

Risk is defined as “the chance of something happening that will have an impact upon
the objectives of an organisation. It is measured in terms of consequences and
likelihood.” (AS4360:1999) Risk is usually construed to be negative (i.e. adverse), but
it can provide opportunities for an organisation as well. Risk is inherent in the
functions and activities of Council and its service providers. As the consequences of
an adverse event may include an inability to meet ratepayer and customer
requirements, financial loss, organisational or political embarrassment, operational
disruption, legal problems, and so forth, it is important that management policies,
procedures and practices are in place to minimise Council’s exposure to risk.

Risk Management involves adopting and applying a systematic process to identify,


analyse, evaluate, treat and monitor risk so that it is reduced and maintained within
an acceptable level. Risk Management is a business tool and a part of “good
management” and good planning processes.

Page 5
It is said that “Management” may be defined as the process of planning, organising,
leading and controlling the resources and activities of an organisation in order to fulfil
its objectives most cost-effectively. Whereas “Risk Management” is the process of
making and carrying out decisions that will minimise the adverse effects of accidental
losses upon an organisation.

The process follows that of the recent Australian Standard on risk management (AS
4360).

Its elements are:

• Establishing the organisational context in which the risk occurs


• Identify the various risks
• Analyse the risks in terms of consequence & likelihood and the existing
controls in place to manage those risks
• Evaluate the risks against the organisational criteria and determine what
risks will be treated or accepted
• Treat the risks through acceptance & ongoing surveillance or developing
& implementing action plans to treat the risk
• Monitor & review the risks and the system in which they are managed
• Ensure communication & consultation occur throughout the process with
stakeholders

2.2 Why Introduce Risk Management Into Redland Shire


Council?

Risk Management will assist us to achieve Council’s corporate objectives by:

! Integrating the various risk control measures that Council currently uses into one
holistic view of what Council is doing to minimise its risk exposures. This single
view will show priorities and any gaps that need to be addressed.

! Implementing a visible, formalised and consistent process for managing Council’s


exposures to risk, thereby supporting continuous improvement in Council’s
programs and providing an assurance of more effective outcomes;

! Incorporating identified risk management solutions into planning and


administrative processes resulting in more structured, accountable and effective
business planning and project management;

! Building on existing risk management strategies such as administrative,


engineering, contractual, safety and quality management controls; and

! Encouraging staff and managers to think about risk, and risk management, in
their day to day work, in program, contractor and project management, and in
forward planning activities.

Page 6
Council’s main risk mitigation strategies to date have included administrative,
contractual, technical, safety and management controls as a part of business and
program activities - for example:

! Financial and personnel delegations and authorisations;


! Reconciliations of data;
! Detailed tender specifications, evaluations and selection of tenderers;
! Detailed standards, engineering checks, tests and quality assurance;
! Reporting, review and analysis;
! Oversight and supervision of contractors;
! Policy and procedure manuals and guidelines;
! Training and development;
! Safety for employees, contractors and the public using tools like maintaining a
state of readiness to achieve a rating of at least 75% under the Queensland
Division of Workplace Health & Safety’s Tri-Safe Audit requirements;
! Physical controls such as security systems and fire protection measures;
! Contractual arrangements which include indemnities, insurances and the like;
! Contingency planning;
! Internal Audit;
! Commenced development of an Integrated Management System.

Council now seeks to formalise existing administrative and management controls and
risk mitigation strategies, and relate them to our planning processes to develop a
more rigorous, measurable and integrated risk management framework across all
programs and projects.

Risk Management will be applied to all Redland Shire Council activities, including
those delivered on Council’s behalf by external service providers and project
contractors. This will help to:

! Ensure that the quality and reliability of services and other program outputs are of
a very high standard;

! Ensure services meet requirements and are delivered within cost and schedule;

! Protect employees, property, information and all other assets; and

! Comply with all legal requirements relative to areas of risk.

Page 7
3. RISK MANAGEMENT AT REDLAND SHIRE COUNCIL

3.1 Concept and Goal

Risk Management should be made up of three complementary elements:

• Awareness element: development of training programs to provide Council


personnel with awareness, understanding and appreciation of risk exposures, risk
controls and risk management processes applicable to our activities.

• Assessment element: development of specific information and tools to help


with the identification, analysis, evaluation and treatment of risks.

• Assurance element: efficient monitoring and reporting procedures through


Council’s organisational structure to provide its executive management with
assurance that major risk exposures have been identified and that risk
management strategies are in place or being actioned through corporate and
program management plans.

These three elements comprise a “triple A” framework (“Awareness-Assessment-


Assurance”) and one that we can promote to service providers and contractors as a
specification or goal for them to achieve. To this end, the achievement of satisfactory
training, risk assessment and assurance reporting will provide Redland Shire Council
with a “triple A” risk management performance or assurance rating from its
contractors in particular. This will be a way of helping to get best value for its
ratepayers.

Risk Management is thus goal-oriented. The target goal is “A-A-A” for achievement of
“awareness-assessment-assurance” requirements as outlined below. It is intended
that risk management will be specifically used to assist in development of Council’s
Corporate Plan and Operational Plans. The goal will be for Council and each of its
Service Units to achieve a “A-A-A” rating for its risk management efforts.

AWARENESS
ASSESSMENT
ASSURANCE

Page 8
3.2 End Result

The end result of risk management is to provide Council executive with a regular
profile report of the status of risk controls across the organisation and an
assessment/assurance report of its major risks.

Risk Management Report to


Process as per Executive
CORPORATE AS4360 Management
Annual Review of and Finance &
Corporate Risk Performance
Register Management
Committee

Risk Management
Process as per Report to
Executive
OPERATIONAL AS4360
Management
Annual Review of and Finance &
Corporate Risk Performance
Register Management
Committee
Risk Management
POLICY Process as per Report to
AS4360 Executive
Report identifies the Management
risks of the policy prior and Finance &
to decision Performance
Management
Committee

Risk Management Report to


Process as per
ACTIVITY AS4360
Senior
Management
Annual Review of
Risk Register

Risk Management Report to


Process as per AS4360 Project
PROJECT Project Risk Register Manager
and Risk Management
Plan

Risk Management Report to


DECISION Process as per decision maker
ANALYSIS AS4360
Informs reporting to
Council for decision

Page 9
INTEGRATION OF RISK AND PERFORMANCE MANAGEMENT

To achieve the maximum benefit through its risk management activities, Council will
use both a risk management framework and a performance management framework.
Each framework has a dependency on the other. There are clear overlaps in both
frameworks. These are represented in the diagram below. Council’s risks can be
reduced by better managing its performance and its performance can be improved by
better managing its risks. There are synergies between both frameworks that need to
be taken advantage of.

Performance Mgmt Framework Risk Mgmt Framework

Community Plan Risk Management Policy


Report to Community SOER
Strategic Risk Review
Corporate Plan
Annual Report Operational Risk Review
Qtrly Report
Qtrly Resident update Activity Risk Assessments
PMC

Project Reporting Policy Management Strategy

Operational Plan WH&S / ENV / Quality Ctee


Qtrly Report SLA’s
Documentation
Qtrly Report
Compliance Program Business Manual
Monthly exception report Customer Complaints Procedures WH&S Policy
Audits Work instructions
Customer Survey Business Process IMS
Community Surveys Performance Reporting
Project Management
Business Continuity Planning
Audit Committee
Process Evaluation
Qtrly budget review
Monthly budget review Risk Management Tri-Safe WH&S Audit
Business Improvement
Framework Internal Audit Preparedness
Initiatives
AQC - Guided Self Assessment
(benchmarking) Staff Recruitment & Selection Process
Staff Induction & Training Program Performance Mngt Framework
Employment Medicals
EOY Financial Report QAO
Self insurance (Redland Work Cover)
Customer Complaints
Mgmt System
Educational Assistance Program Workplace Rehabilitation Program (+EAP)
Contract Mgmt
Internal Management Process System Public, property & Professional liability insurance
- annual appraisal
- counselling
HR Policies - EEO, Workplace Harassment,
Grievance Process etc
Staff Performance Management Process
- annual appraisal Counter Disaster
- counselling

3.3 Approach

Council will achieve the above requirements by:

" Using the risk management process in AS4360 for assessment of:

# Strategic (Corporate);
# Operational (Program);
# Activity (Service Unit);
# Project;
# Policy; and
# Decision analysis

functions within Redland Shire Council.

Page 10
" Documentation of risks will form a Risk Register which is open to review and
updating, and provides a record should personnel change. Risk information will
be filtered to focus on only those risk exposures that are significant and relevant
to providing assurance.

" A documented Risk Register and a Risk Management Plan from contractors for
service-critical projects.

" Risk management will be incorporated into all Service Unit Business Plans and
SLA’s.

" Risk management will be incorporated into all Staff Appraisal documents with
varying degrees of accountability according to management responsibility.

" Developing a contract management system that ensures risks are addressed at
all stages of the contract processes.

" Monitoring and reviewing risk in external services and where appropriate,
providing input to contractors’ risk management processes;

" Incorporating risk management strategies, particularly action plans arising from
the Risk Registers, into Council’s broader business and corporate planning
processes, and if necessary budget processes;

" Periodic and mandatory reviewing and updating of the Risk Registers to account
for changes in risks and related issues;

" Targeting Risk Management as a corporate training issue for Council in 2002 and
beyond.

" Providing a safe work environment for its employees, contractors and members
of the public. It will be active in the pursuit of workplace health and safety
initiatives. Resourcing of workplace health and safety will be provided to ensure
that Council meets its statutory obligations and minimises workplace injuries and
incidents.

" Using its own workers compensation insurer, Redland Workcover, to manage
injury claims against Council. Redland Workcover has been established to deal
with claims expeditiously and fairly so that the interests of both the employee and
the organisation are balanced. Redland Workcover will meet its statutory
obligations and continue to improve its operations to ensure it maintains its self-
insurance status. Further Redland Workcover has been established to meet
Council’s long term interests by gaining sufficient funds in reserves to meet all its
compensation payments and operational costs and minimise the ongoing cost to
the Council. It has been established with its own budget and staff so that all costs
are transparent.

Page 11
" Maintaining adequate insurance cover. Where risks are such that they have
potentially a high financial impact on the organisation, insurance cover is
arranged to transfer some financial risk to the insurer. Insurance is but one tool
available in the Risk Management process and Council will balance insurance
with all other preventative measures rather than simply relying on insurance to
manage its risks. Insurance is maintained for, including but not limited to, public
and products liability, professional indemnity, property, personal accident, fidelity
guarantee and motor vehicles. Insurance is sourced from wherever Council is
best able to purchase it and on the best terms available for Council.

" Management systems are seen as a means of managing Council’s risks, through
properly developed and documented methods of performing work. Compliance
with these management systems will not only improve quality and consistency of
our products and services, but also reduce the likelihood of inappropriate actions
by staff. Supporting documents such as policies and guidelines and checklists will
be used to convey the requirements of our systems to staff.

" Regular reviews of its Business Continuity Plan (BCP) will be undertaken to
maintain its currency and adequacy. This will involve desktop review with the
business process owner and testing of the plan. The process for undertaken this
exercise will be documented in the BCP.

" Other supporting activities have been identified in the diagram above. These are
developed and managed by various parts of the organisation. While some do not
have a primary risks management focus, they contribute to Council’s operations
with a net result of improved risk management.

3.4 Element 1: Awareness Training

To ensure the successful implementation of risk management throughout Council,


appropriate training in risk management will be provided to staff and managers. The
Risk and Liability Services Manager will prepare a training schedule for the 2002 &
2003 calendar years.

Training content will encompass the risk management process, application of risk
assessment tools, assistance with identification and analysis of Council’s risk
exposures, risk profile and assurance reporting.

Page 12
3.5 Element 2: Assessment Framework

Risk assessment comprises a hierarchical process to apply at the levels as illustrated


in Figure 2 below.

High-level issues that


affect the sustainability of
CORPORATE the organisation or its
ability to deliver on its
corporate objectives

Medium-level issues that


affect the viability of the
OPERATIONAL program management
and delivery that have
corporate implications

ACTIVITY Issues that affect the


service unit

Issues that affect the


PROJECT outcome of a project

Issues that are likely to


POLICY arise as a result of
implementing or not
implementing a policy

Impacts that may


DECISION arise as a result of the
ANALYSIS decision

Figure 2. Risk Management process to apply to levels, as shown above

(a) At Corporate and Operational Level

The Council will establish a corporate Risk Register compiled from a consolidation of
the Strategic Risks and Operational Risks. Strategic Risks will be identified through
analysis of the Corporate Plan and what can impede the organisation from its
successful delivery. Operational Risks will be identified through analysis of the risks
facing middle management in delivering the Operating Plan effectively. These are
primarily focused on the achievement of the desired outcomes of the organisation.

Page 13
(b) At Activity Level

The assessment of risks that are likely to impact upon the day to day operations of
the Service Units and the staff within them is to be assessed. The information will be
captured in a Risk Register and Risk Management Plan for use by staff in the Unit
and associated Group. Activity level risks will be identified and subsequently
analysed by reference to the business plans and the products and services delivered
by the Service Unit. These are primarily focused on the achievement of the desired
outputs of the organisation.

(c) At Project Level

At project level, the risk assessment process is to follow the elements and
procedures outlined in the “Project Management Framework” within the Integrated
Management System (IMS). This details the process to be undertaken.

The deliverable from the risk management process applied at project level is a Risk
Register and a Risk Management Plan for the project. The Risk Register documents
the identification, analysis, and assessment of risks and the Risk Management Plan
summarises planned and actual risk controls and measures. The format for these is
contained in the IMS Project Management Framework”

The format of the Risk Register and the Risk Management Plan will be progressively
refined with Council service units and key service providers to ensure a brief and
efficient process that fits within current quality and contractual assurances.

(d) At Policy Level

At policy level the risk management process will be used to ensure that the full
implications of implementing a policy or not implementing a policy are established
prior to Council making a decision on the policy. The process to be followed is
detailed in the Policy Management Strategy.

(e) At Decision analysis Level

At decision level the purpose of the risk arrangement process is to ensure that all
risks have been investigated as part of the information used in making the decision.
This will ensure that a fully informed decision is made and the necessary contingency
plans have been developed as part of the decision implementation process. The
process for undertaking this process is detailed in the “Decision Making Framework”
which will be developed at a future date.

Page 14
3.6 Element 3: Assurance

(a) Responsibilities and Carriage of Risk Management

All staff are responsible for managing risk within their area of responsibility for
promoting the application of risk management by contractors, and assisting with the
identification of global or broadly based risks that could impact on Council as a
whole.

Specific details of accountabilities are contained in the IMS.

The Performance and Risk Management Group of Redland Shire Council is


responsible for:

! Coordinating the regular formal updating of Strategic & Operational Risk


Registers and Risk Management Plans and compiling a master set;

! Maintaining corporate risk and risk control information;

! Analysis and reporting;

! Ensuring appropriate linkages to Council’s business and corporate planning


processes, and where necessary, to budget processes;

! Providing training in risk management techniques and systems;

! In consultation with management set risk reduction targets across all


Departments and levels within Council;

! Providing advice to management and staff on new and emerging issues;

! Managing Redland Workcover on behalf of Council to process workers


compensation claims;

! Manage Council’s insurance portfolio and claims made against Council;

! Represent Council at industry forums, conferences and workshops;

Additional areas that should be addressed, but are not possible due to
resourcing constraints include:

! Ensuring that all relevant risk areas are considered including those emanating
from the services of external providers and contractors;

! Providing advice to management and staff in conducting complex risk


assessments and in identifying and implementing risk control measures;

! Conducting periodic audits/reviews of risk management procedures and practices


across all Departments and levels within Council to ensure compliance with the
risk management framework;

Page 15
! Increasing the level of assistance to managers and staff in undertaking risk
assessments. Currently there is limited ability to do this function and the volume
of requests is increasing continually;

! Developing incentives to recognise risk management excellence in Council


through monitoring performance and publicly recognising individuals,
Department, Groups and Units who perform above expectation;

(b) Reviews

The Risk Registers will be formally reviewed and updated annually as a part of our
corporate planning process, although more regular reviews and updates by service
unit, contract and program managers are encouraged in accordance with any
significant changes to activities or appointments.

It is anticipated that these formal reviews will be concurrent with, and part of, the
business and budget planning process because of the complementary nature of the
two processes.

These formal annual reviews will include:

! A summary ranking of risks by overall rating level to identify all “high” and
“medium” level risks across Council as a whole to ensure that all are accounted
for in Council’s broader planning and reviewing processes of its services.

! High level Risks are reviewed and Control Measures reassessed in accordance
statutory requirements with the view to eliminating or reducing the risk.

! A statement of Council’s performance over the previous twelve months showing


the reduction in risk and the improvements made in risk controls.

4. DEVELOPMENT AND IMPLEMENTATION

4.1 Approach

This document presents the concept and key elements for Council’s Risk
Management in terms of an overarching framework or guidelines.

The achievement of a “triple A rating” for risk management is a goal for Redland
Shire Council. The “A-A-A” is achieved when training has been completed by all
relevant personnel, when assessment of all critical programs and risk exposures has
been concluded, and when assurance reports have been submitted from key
contractors and all Service Unit operations.

The Performance and Risk Management Group will assist with the development of
the content of training programs; the refinement of risk assessment tools; the
preparation of risk registers and assurance reports.

Page 16
4.2 Timeframe

The proposed timeframe for development and implementation of risk management


within Redland Shire Council is outlined as follows:

• Direction issued to Executive Management Team Completed June 2000


and agreed

• Training
• Prepare initial training program for workshop Completed March 2001
participants

• Initial risk management planning sessions Completed December 2000

• Risk Assessment training workshops Completed June 2001


(selected staff)

• Prepare & complete initial Risk Assessments Completed January 2002


and Profiles

• Incorporate Risk Assessments into corporate Completed December 2001


planning process

• Review initial outcomes & prepare risk management Completed October 2002
program refinements

• Develop Risk Management Training Schedule for September 2003


2003 & 2004 calendar years

• Develop Incentive Scheme proposal to reward December 2003


excellence in and promote Risk Management within Council

• Business Continuity Plan Update December 2002 & 2003

• Develop Risk Reduction Targets December 2003

4.3 Cost Implications

The development of Council’s risk management systems and processes has been
budgeted in the Performance and Risk Management Group for development of the
Strategic and Operational Risk Register, the purchase of software specific for
management information about risk and for the ongoing management of risk.

Redland Workcover has its own budget for its operations, including compensation
payments and management, rehabilitation and administrative costs.

The workplace health and safety functions performed by Council are budgeted within
the Human Resources Group and include management, administrative, rehabilitation
and preventative program costs.

Page 17
Other costs associated with the management of risk are carried across the
organisation, through the wages and salaries budgets of those areas participating in
the assessment of risks and actions that result from those assessments. As risk
management is an essential element of managing Council these costs cannot be
separated from costs of running the organisation.

For risk management to be effectively implemented in RSC does require additional


resourcing. As this is relatively new in local government and Redlands (apart from
work place health and safety) there is the initial system development, training and
assistance for managers and staff that is required to make progress at a satisfactory
rate. It is suggested that a position be appointed for a 3-year period to assist in this
initial development phase. This would also include additional support for work place
health and safety initiatives and compliance audits of our systems to ensure we are
able to maintain our self-insurance status for Redland Workcover. The loss of our
self-insurance status would be a considerable cost increase to the organisation of
many times the salary cost of the position.

As risk management inevitably results a reduced waste of valuable resources and


the improved allocation of productive resources time spent in identifying and reducing
or eliminating risk more than recovers the costs associated with its implementation. It
is from this perspective that it could be held that a quality risk management program
is not only cost neutral to the organisation but ultimately will result in substantial
savings.

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CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

2 GENERAL MANAGER CUSTOMER SERVICES

2.1 EXCHANGE OF LAND - MACLEAY ISLAND


File No: P144161
Attachments: Locality Map
Responsible Officer Name: Brian Lewis
Manager Corporate Asset Management
Author Name: Merv Elliott
Property Services Manager

EXECUTIVE SUMMARY
In 2001, Council exchanged a block of land in its ownership at Michael Street, Macleay
Island for a block of land in Aruma Street, Macleay Island that was required for drainage
purposes. The exchange was completed on an equal value basis and subsequently
Council became owner of Lot 800 on SP100579 and Lot 76 on RP130224 situated in
Michael Street, Macleay Island transferred to the previous owner of Lot 800.

Recently a building application has been submitted to build a dwelling on Lot 76. Soil
assessment reports were carried out and, as a consequence, the allotment was
considered unsuitable for building because of the large area of land that was required for
the drainage trenches. It should be noted that at the time of the original transfer, the site
drainage would have been approved in accordance with existing standards. The present
day drainage standards stipulated by the Queensland Government – Standard
15/47/2000 require larger drainage trenches which renders the site unsuitable for building
purposes.
PURPOSE
The purpose of this report is to recommend that Lot 76 be purchased by Council at fair
market value, or that approval be granted to exchange a Council block, that is suitable for
building, on an equal value basis.

BACKGROUND
Discussions have been held with the owners, who appear at this stage, to be inclined to a
land exchange on an equal value basis if it can be arranged. Several blocks have
already been identified as suitable for a land exchange and investigations are now
proceeding to assess the suitability of the lots for building purposes.

ISSUES
If Council approves the exchange, approval from the relevant Minister will be required.
Previous applications to the Minister have been approved without exception.

RELATIONSHIP TO CORPORATE PLAN


One of the objectives of Council’s Corporate Plan is to manage the corporate assets of
the Council that support the operational objectives of the organisation. An exchange of
land on an equal value basis as per this recommendation supports this theme.

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CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

FINANCIAL IMPLICATIONS
Funds are provided in SMBI roadworks budget for purchase. No funds, except
administration costs, will be involved in exchange.

CONSULTATION
Consultation has taken place with the property owners who appear, at this stage, to be
inclined to a land exchange on an equal value basis if it can be arranged.
OPTIONS

PREFERRED
1. To grant approval to negotiate the purchase of Lot 76 on RP130224 at fair market
value or exchange the subject lot for a Council allotment of equal value.

2. That the Mayor and Chief Executive Officer be authorised to sign and seal all
documentation relating thereto.

ALTERNATIVE
That Council take no action to purchase or exchange the subject allotment.

OFFICER’S/COMMITTEE RECOMMENDATION
Moved by: Cr Townsend
Seconded by: Cr Elliott

That Council resolve as follows:


1. To grant approval to negotiate the purchase of Lot 76 on RP130224 at fair
market value or exchange the subject lot for a Council allotment of equal
value.
2. That the Mayor and Chief Executive Officer be authorised to sign and seal all
documentation relating thereto.

CARRIED

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Corporate Services EXCHANGE OF LAND - MACLEAY ISLAND
Description: Locality Map Attachment

Attachment: Page 1 of 1
CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

2.2 RESUMPTION OF PROPERTY FOR PARK & ROAD PURPOSES - LOTS 3 & 4
RP216888
File No: P-107449
Attachment: Extract Planning & Policy Report 9 October
2002
Locality Map

Responsible Officer Name: Brian Lewis


Manager Corporate Asset Management
Author Name: Merv Elliott
Property Services Manager

EXECUTIVE SUMMARY
At its General meeting held on 16 October 2002, Council resolved to resume Lots 3 & 4
RP216888 for park and road purposes.

No objection has been received from the property owners to the proposal to resume the
subject land.

It is recommended that Council continue with resumption action to acquire Lots 3 & 4 on
RP216888 for park and road purposes.
PURPOSE
In accordance with the provisions of the Acquisition of Land Act 1967, Council is required
to resolve to continue with resumption action.

BACKGROUND
There is an area of land east of the Railway at Wellington Point and bounded by Station
Street, Hilliards Creek and Duncan Street, which Council has been buying back for many
years. The area is low lying, zoned Drainage Problem and is generally unserviced. At
the General Meeting on 16 October 2002, Council resolved as follows:

1. “That pursuant to Section 5(1)(b) of the Acquisition of Land Act 1967 Council
resolves to:

a) Resume Lots 3 & 4 on RP216888 for Park and Road Purposes; and
b) Resume Lots 25, 31 & 34 on RP124087 for Park Purposes.

2. That Council approve in principle the opening of a new 18m wide road reserve
along the eastern side of the Railway between Station Street and Duncan
Street, Wellington Point.

3. That Council approve the placement of fill for this proposed road.”

It has always been Council’s intention never to build this section of Station Street, Lang
Street, Duncan Street and Noel Street. This area is difficult to service, low lying, next to a
RAMSAR site and ideal for use by the Public as a park. There are now only 5 lots (4
owners) that are still in private ownership. It is now time to resume these lots so that
action can be taken to formalise the park and carry out road closures.

ISSUES

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CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

Noel Street is flat low lying and subject to flooding and bisects the proposed parkland.

From an environmental point of view and for the benefit of maximising the park it would
be much better to replace Noel Street Road Reserve with a road reserve, which runs
immediately adjacent to the railway reserve.

Consequently when resuming Lots 3 and 4 on RP216888, the purpose for resumption
would be for both park and road purposes.

There are only 5 privately owned allotments in this area that are not Council owned.
Resumption action has previously been recommended over the 5 allotments (which
include the 2 subject allotments) and a future submission will be made to Council in
respect to the other 3 allotments.

RELATIONSHIP TO CORPORATE PLAN


The recommendation primarily supports Council’s strategic priority to provide and
maintain water, waste services, roads, drainage & support the provision of transport and
waterways infrastructure to sustain our community.

FINANCIAL IMPLICATIONS
Environmental Management Group has included resumption cost in 2003/2004 Budget.

CONSULTATION
The property owners were contacted by correspondence and no objection has been
received to the proposal to resume the subject land.
OPTIONS

PREFERRED
1. That Council resolve to continue with resumption action to acquire Lots 3 & 4 on
RP216888 for park and road purposes.

2. That the Mayor and Chief Executive Officer be authorised to sign and seal all
documentation.
ALTERNATIVE
That Council discontinue resumption action.

OFFICER’S/COMMITTEE RECOMMENDATION
Moved by: Cr Ross
Seconded by: Cr Beard

1. That Council resolve to continue with resumption action to acquire Lots 3 & 4
on RP216888 for park and road purposes.
2. That the Mayor and Chief Executive Officer be authorised to sign and seal all
documentation.

CARRIED

RESUMPTION OF PROPERTY FOR PARK (INCIDENTAL TO CONSERVATION)


File No: P-304216

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Corporate Services RESUMPTION OF PROPERTY FOR PARK &
Description: Planning & Policy Report of 9/10/02 ROAD PURPOSES – LOTS 3 & 4 RP216888
Attachment

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Attachment

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Description: Planning & Policy report 9/10/02 ROAD PURPOSES – LOTS 3 & 4 RP216888
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Description: Planning & Policy report 9/10/02 ROAD PURPOSES – LOTS 3 & 4 RP216888
Attachment

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Description: Planning & Policy report 9/10/02 ROAD PURPOSES – LOTS 3 & 4 RP216888
Attachment

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Description: Planning & Policy report 9/10/02 ROAD PURPOSES – LOTS 3 & 4 RP216888
Attachment

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CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

Attachments: Council Resolution of 12 March 2003


Locality Map
Responsible Officer Name: Brian Lewis
Manager Corporate Asset Management
Author Name: Merv Elliott
Property Services Manager

EXECUTIVE SUMMARY
At its meeting held on 12 March 2003 Council resolved to resume property situated at 1
Waterside Drive, Macleay Island, described as Lot 7 on SP132706 for park (incidental to
conservation).

A Notice of Resumption was issued to the property owner on 12 May 2003 and a further
resolution from Council is required before the second stage resumption notice is issued.

It is recommended that Council continue with resumption action to acquire Lot 7 on


SP132706 for park (incidental to conservation).
PURPOSE
The purpose of this report is to obtain Council approval to continue with resumption action
to acquire Lot 7 on SP132706 for park (incidental to conservation).

BACKGROUND
Council received an application to erect a dwelling house on 1 Waterside Drive, Macleay
Island (Lot 7 on SP132706) on 6 August 2002. Council subsequently approved this
application subject to conditions.

ISSUES
The subject lot is identified for compulsory acquisition (conservation) in accordance with
the revised Conservation Acquisition Strategy for the Southern Moreton Bay Islands
adopted by Council 18 December 2002. This nomination was based on the
understanding that no dwelling house had been erected on the site. Recent field
inspections by Council’s building officers confirmed that building works have not
commenced on this site. A comprehensive search has confirmed that there are no other
cases where a planning approval has previously been granted since May 2002 and the
site has been included for compulsory acquisition within the Revised CAS.

No formal objection to the resumption has been made. Correspondence has been
received which relates to compensation issues, which will be addressed when resumption
has been proclaimed in the government gazette.

RELATIONSHIP TO CORPORATE PLAN


The SMBI Local Area Plan and SMBI Conservation Strategy are major projects and
contribute to the achievement of both the Corporate Plan and the Islands vision as
expressed in the SMBIPLUS.

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CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

FINANCIAL IMPLICATIONS
The Revised CAS will be funded through appropriate budget allocations. A three-year
implementation program was endorsed by Council as part of the current 2002/2003
financial year budget.

CONSULTATION
A Notice of Resumption was issued to the property owner on 12 May 2003. No formal
objection to the resumption has been made. Correspondence has been received which
relates to compensation issues, which will be addressed when resumption has been
proclaimed in the government gazette.
OPTIONS

PREFERRED
1. That Council resolve to continue with resumption action to acquire Lot 7 on SP132706
for park (incidental to conservation).

2. That the Mayor and Chief Executive Officer be authorised to sign and seal all
documentation relating to this matter.

ALTERNATIVE
That resumption action be discontinued.

OFFICER’S/COMMITTEE RECOMMENDATION
Moved by: Cr Beard
Seconded by: Cr Ross

1. That Council resolve to continue with resumption action to acquire Lot 7 on


SP132706 for park (incidental to conservation).
2. That the Mayor and Chief Executive Officer be authorised to sign and seal all
documentation relating to this matter.

CARRIED

Cr Bradley requested that his vote be recorded in the NEGATIVE.

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Corporate Services RESUMPTION OF PROPERTY FOR PARK
Description: Locality Map (INCIDENTAL TO CONSERVATION)
Attachment

Attachment: Page 1 of 1
Corporate Services RESUMPTION OF PROPERTY FOR PARK
Description: Council Resolution of 12 March 2003 (INCIDENTAL TO CONSERVATION)
Attachment

Attachment: Page 1 of 1
CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

2.4 RESUMPTION OF PROPERTY FOR PARK PURPOSES - LOT 25 RP14087


File No: P-107810
Attachments: Locality Map
Responsible Officer Name: Brian Lewis
Manager Corporate Asset Management
Author Name: Merv Elliott
Property Services Manager

EXECUTIVE SUMMARY
At its General meeting held on 16 October 2002 Council resolved to resume for park
purposes Lot 25 on RP14087.

No objection has been received from the property owner to the proposal to resume the
subject land.

It is recommended that Council continue with resumption action to acquire Lot 25 on


RP14087 for park purposes.
PURPOSE
In accordance with the provisions of the Acquisition of Land Act 1967, Council is required
to resolve to continue with resumption action.

BACKGROUND
There is an area of land east of the Railway at Wellington Point and bounded by Station
Street, Hilliards Creek and Duncan Street, which Council has been buying back for many
years. The area is low lying, zoned Drainage Problem and is generally unserviced. At
the General Meeting on 16 October 2002, Council resolved as follows:

1. “That pursuant to Section 5(1)(b) of the Acquisition of Land Act 1967 Council
resolves to:

a) Resume Lots 3 & 4 on RP216888 for Park and Road Purposes; and
b) Resume Lots 25, 31 & 34 on RP124087 for Park Purposes.

2. That Council approve in principle the opening of a new 18m wide road reserve
along the eastern side of the Railway between Station Street and Duncan
Street, Wellington Point.

3. That Council approve the placement of fill for this proposed road.”

ISSUES
It has always been Council’s intention never to build this section of Station Street, Lang
Street, Duncan Street and Noel Street. This area is difficult to service, low lying, next to a
RAMSAR site and ideal for use by the Public as a park. There are now only 5 lots (4
owners) that are still in private ownership. It is now time to resume these lots so that
action can be taken to formalise the park and carry out road closures.

The subject allotment is one of 5 allotments in this area that is not in Council ownership.
Action to resume the 4 other allotments has been previously approved by Council. As
Council has received no objection to the resumption, Council is required to authorise that

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CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

resumption action continue in accordance with the provisions of the Acquisition of Land
Act 1967.

RELATIONSHIP TO CORPORATE PLAN


The recommendation primarily supports Council’s strategic priority to provide and
maintain water, waste services, roads, drainage & support the provision of transport and
waterways infrastructure to sustain our community.

FINANCIAL IMPLICATIONS
Environmental Management Group has included resumption cost in 2003/2004 Budget.

CONSULTATION
The property owners were contacted by correspondence and no objection has been
received to the proposal to resume the subject land.
OPTIONS

PREFERRED
1. That Council resolve to continue with resumption action to acquire Lot 25 on RP14087
for park purposes.

2. That the Mayor and Chief Executive Officer be authorised to sign and seal all
documentation.

ALTERNATIVE
That Council discontinue resumption action.

OFFICER’S/COMMITTEE RECOMMENDATION
Moved by: Cr Bradley
Seconded by: Cr Seccombe

1. That Council resolve to continue with resumption action to acquire Lot 25


RP14087 for park purposes.
2. That the Mayor and Chief Executive Officer be authorised to sign and seal all
documentation.

CARRIED

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Corporate Services RESUMPTION OF PROPERTY FOR PARK
Description: Locality Map PURPOSES – LOT 25 RP14087
Attachment

Attachment: Page 1 of 1
CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

CLOSED SESSION
Moved by: Cr Seccombe
Seconded by: Cr Ross

That the meeting be closed to the public to discuss the following item pursuant to Section
463 (1) of the Local Government Act 1993:

The reason that is applicable in this instance is as follows:

(h) other business for which a public discussion would be likely to prejudice
the interests of the local government or someone else, or enable a person
to gain a financial advantage.

• Resumption of Property for Public works (Marine Infrastructure) Purposes.

CARRIED

MOTION TO REOPEN MEETING

Moved by: Cr Seccombe


Seconded by: Cr Ross

That the meeting be again opened to the public.

CARRIED

2.5 RESUMPTION OF PROPERTY FOR PUBLIC WORKS (MARINE INFRASTRUCTURE)


PURPOSES

File No: P.145619


Responsible Officer Name: Brian Lewis
Manager Corporate Asset Management
Author Name: Merv Elliott
Property Services Manager

EXECUTIVE SUMMARY
At its General Meeting held on 31 October 2001, Council approved the resumption of
14 Russell Terrace, Macleay Island for Marine Infrastructure purposes.

Council identified the land as suitable for the future expansion of the car parking area and
Council resumed the land on 13 June 2003. The owner subsequently submitted a claim
for compensation. The claimants have now offered to settle the matter.

It is recommended that council grant approval for the settlement of the compensation
claim.

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CORPORATE SERVICES COMMITTEE REPORT 06 AUGUST 2003

COMMITTEE RECOMMENDATION
Moved by: Cr Seccombe
Seconded by: Cr Ross

That Council resolve as follows:

1. That Council grant approval for the settlement of the compensation claim in
respect to the subject allotment in the amount discussed in closed session and
outlined in Confidential Report dated 28 July 2003 entitled, Resumption of
Property for Public Works (Marine Infrastructure) Purposes.

2. That the Mayor and Chief Executive Officer be authorised to sign and seal all
documentation relating to this matter.

CARRIED

MEETING CLOSURE
The meeting closed at 2.06pm.

Page 23

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