2016-03-07 General Committee - Item 2 - Waste Management PBA Final Report - ATTACHMENT 1

Business Profile Summary
Area                  Outcome
Business Functions    The major services provided by the business include:
                       Waste collection and transport including commercial and domestic
                         waste, recycling, and green garden waste.
                       Operation of the Eumundi Road landfill for waste disposal and
                         resource recovery activities.
                       Operation of the Cooroy and Pomona waste transfer stations.
                       Waste management and waste minimisation promotional activities.
Business Structure     The business resides within Council’s Community Services
and Governance           directorate).
                       The Waste and Environmental Health Manager is responsible for
                         the waste management operations across the shire and directly
                         reports to the Director Community Services.
                       The business is operating under an interim Full Cost Pricing (FCP)
                         business model.
Personnel              The business employs 8.6 full time equivalent staff in the
                         management and administration, collection and disposal functions.
Support Services       The business currently utilises a number of support services from
                         Council via internal service arrangements and is charged a
                         calculated percentage (based on expenditure) of corporate
                         overhead costs to represent payment for these services.
Assets                 The current value of assets utilised by the business is $18.2 million,
                         with a replacement cost of $22.2 million.
                       The business does not own any significant assets for collection
                         services, as they are provided under contract.
Revenue and            Waste utility charges account for $10.9 million (or 81%) of operating
Expenditure              revenue for the business. Fees and charges account for a further
                         $2.3 million, with internal sales ($194k) and Community Service
                         Obligations ($82k) accounting for the remainder of operating
                         revenues.
                       Total operating expenses for the business in 2015/16 are $11
                         million. Significant expenditure items include materials and services
                         of $8.2 million, employee costs of $0.6 million, depreciation costs of
                         $0.5 million and corporate overhead costs of $1.1 million.
Competition and        Collection services in the shire are generally non-competitive in
Pricing                  nature, with the business providing a monopoly service for all
                         standard general waste and recycling bin collections in accordance
                         with the provisions contained in the Local Government Act 1993.
                       The business also levies commercial charges for the disposal of
                         waste at the landfill and transfer stations. Charges are levied for
                         domestic and green waste, as well as compacted and loose
                         commercial waste (with charges based on a per vehicle or load
                         basis).


Consultation Process
   A limited consultation program was undertaken to inform the community of the PBA process
    given the level of reform already applied to the business, and previous PBA undertaken by
    Sunshine Coast Regional Council in 2010 that included an extensive consultation process.
   The PBA process was announced on Council’s internet site with a corresponding media
    release (appearing in the local media) announcing the PBA and seeking community input. A
    copy of the PBA Information Paper was also made available for download on Council’s internet

Waste Management Public Benefit Assessment                                                  Page 3