STATE ROAD FUNDS TO LOCAL GOVERNMENT ADVISORY COMMITTEE MINUTES (Meeting 01/2016) Held at WALGA on Wednesday, 23rd March 2016 10:05am Committee Members Present: Mr D Morgan Cr L Craigie Ms R Burges Cr K Chappel Cr J Brown Mr A Vuletta Mr D Snook Mr J Anderson Mr M Cammack

MRWA WALGA WALGA WALGA WALGA WALGA MRWA MRWA MRWA

(A/Chair)

(for J Erceg)

Others in Attendance: Mr I Duncan Mr K Pethick Mr M Hoare Mr S Purdy

WALGA MRWA MRWA IPWEA

Mr S Troughton Mr J Erceg

MRWA MRWA

(Secretariat) (Observer)

Apologies:

1.

WELCOME AND APOLOGIES The Chairman welcomed the Committee members.

2.

CORRESPONDENCE The Committee noted the 1 item of correspondence, an email sent out to Regional Road Group Secretariat following the SAC decision from the 10 December 2016 meeting concerning the operation of the Supplementary Fund to be circulated to their Regional Road Groups and Local Governments.

3.

MINUTES OF PREVIOUS MEETINGS (04 2015) The minutes of the Meeting number 04/2015, held on 10 December 2015, as attached to the Agenda were accepted as a true record of proceedings.

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4.

BUSINESS ARISING FROM PREVIOUS MEETINGS

4.1

Summary of Outstanding Actions Summary of Actions (from the meeting of 10 December 2015) Action Required

Reference

Item/Officer

Current Status

Due Date

04/2015-1

5.4 WALGA (ID)

Review the definition of commodity routes provided in the Commodity Route Supplementary Fund Application Guidelines before submissions are called for 2017/18 (before June 2016)

In progress

29/07/16 meeting

4/2015-2

8.2 MRWA (MC)

Investigate previous Local Government’s claims for similar type of reimbursement approved under the SFFA and if Dalwallinu’s claim is consistent submit a recommendation to SAC for out of session approval

Complete Dalwallinu claim not supported

March 2016 meeting

4/2015-3

8.2 MRWA (MC)

Review SFAA procedures to align with WANDRAA and advise RRG of changes to be implemented. For WANDRRA declared events claims for 100% of opening up costs considered ineligible by WANDRRA will not be eligible for reimbursement under the SFAA as this was not the intent of the fund.

Complete Refer Item 2.1 correspondence out

March 2016 meeting

4/2015-4

10.2 MRWA (DM)

Doug Morgan to organise a short presentation for the next SAC meeting on revised classification criteria, principles and what this means for the future road network

Complete Presentation delivered

March 2016 meeting

4/2015-5

13.2 MRWA (DM)

Doug Morgan to commence a discussion with Ian Duncan regarding fatal crash investigations on Local Roads

Complete

March 2016 meeting

4/2015-6

13.2 WALGA (ID)

Ian Duncan to advise the suitability for WALGA delegates of either Wednesday, 23 March 2016 or Thursday, 24 March 2016 as the preferred change of date for the SAC meeting set down for 31 March 2016

Complete

Before March 2016 meeting

4/2014-10

4 MRWA (MC & ID)

Out of session discussion reviewing the current management structure in SRFLGA Procedures and prepare a presentation on the proposed new structure clarifying accountabilities and responsibilities

In progress – Maurice to discuss with Ian

26/08/15 meeting

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5. 5.1

LOCAL GOVERNMENT ROADS PROGRAM

Expenditure Profile YTD 2015/16 - State Road Funs to Local Government Agreement program The Committee noted the report on the Summary of State Funding on Local Roads for the period as at 29th February 2016. 2015/16 Budget Expenditure AFYE Over/(Under)

$178.562 m (including funds carried forward from 2014/15) $105.201 m $183.532 m $ 4.970 m (over expenditure)

The anticipated $4.97m over expenditure represents around 2.7% of the total program budget resulting from predominantly over programming State Initiatives by Main Roads. The risk of an anticipated $4.97m over expenditure can be managed internally within the total program. Maurice Cammack observed that over expenditure predictions have softened from around $7.5m in January to $4.97m in February and are becoming less optimistic and more realistic as to what can be actually achieved the further we progress towards the end of financial year. It was further noted that compared to the same period last year the expenditure for 2015/16 is in a similar position in terms of percentage of expenditure achieved. Maurice Cammack advised that Road Project Grants (RPG) probably have the highest level of risk of the sub programs particularly in the Metropolitan area of the $80m RPG $26m is sitting in the Metropolitan area where a number of projects have either no claims to date or have only claimed the 1st 40% while only 40% of projects have claimed the full 100%.  Action 01/2016-1: Provide a list of all Metropolitan RPG projects where 0% has been claimed for 2015/16. Shane Purdy advised that the Metropolitan Technical Groups meet in April and the Elected Members meet in May and each council provides an expenditure update through the Main Roads Secretariat and on the Agenda for the May meeting is the recommendation that all councils claim the 1st 40% for 2016/17 RPG by December as endorsed by SAC. The low expenditure rate (29.3%) in the bridge works category for 66.7% of the year complete was queried to which Maurice Cammack responded that he was comfortable this program would meet expenditure targets by 30 June 2016. 5.2

ROMAN II (2014/15 Annual Report) The Committee noted the report included in the agenda. The current ROMAN II support contract ends in June 2016 and from Wednesday, 1 June 2016 the software will be supplied, supported and training delivered directly by the system developer, RAMM Software. In July 2016 RAMM Software will invoice all Local Governments directly for the annual Asset Management subscription renewal fees. As a result of the introduction of Local Government subscription fees the ROMAN ll Grant funded by the State Road Funds to Local Government Agreement will no longer be required for next year’s budget. 70 Local Governments had their data exported from ROMAN ll to IRIS over an 8 month period so all assets are captured in the system improving data quality for reporting purposes. 3 of 10

 Action 01/2016-2: Add a new classification to the annual Regional Road Group KPI Report to summarise local government ROMAN ll data updated in IRIS that year. 5.3

MINDER (Financial Report) The Committee noted the report included in the agenda. Continuing engagement with key stakeholders regarding cost recovery for extraordinary freight tasks. A Supreme Court decision in February upheld Shire of Harvey’s legal capacity to recover road wear costs. Jeff Anderson queried how the Shire of Harvey arrived at their figure used to recover costs.  Action 01/2016-3: Ian Duncan to provide a copy of the User Guide applied by the Shire of Harvey to calculate an amount for recovering road wear costs for Jeff Anderson. An advisory group to provide advice and input to the WA Bicycle Network Implementation Plan has been established.

6.

STATE BLACK SPOT PROGRAM

6.1

Summary and Financial Reports The Committee noted the Summary and Financial Reports for the period - 2015/16 (as at 29/02/16) Overall  Total expenditure was $12.48 million (46.9% of the current budget which incl $6.59 million in carryovers). State  Current expenditure is $5.02m (43%)  AFYE predicts a $1.49 million overspend Local  Current expenditure is $7.46m (49.9%).  AFYE predicts a $0.59 million underspend General Discussion  State AFYE numbers look good for now but historically there are always concerns about being overly optimistic. $8 million in funds to be spent by 30 June which appears ambitious.  Local Roads has $ 7 million in funds to be spent by 30 June which if realised would be a very good outcome. Last year at the same time AFYE’s predicted a $0.90 million underspend that that became a $5.0 million by 30 June 2015.  History suggests a softening of expenditure predictions from this point on but it appears we will be in a better position come 30 June compared to the same time last year.

6.2

State Black Spot Program 2016/17 The project fund applications recommended for the 2016/17 program were discussed in some detail particularly in relation to the number of reserve projects and those areas that have no or very few project nominations. It was noted that 5 Regional Road Groups have reserve projects over the indicative allocation to bring on board if there are project delivery delays in other areas also there are a number of projects that have been staged to improve delivery performance. Metropolitan have $2 million in reserve projects.

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It was noted that Gascoyne have no project nominations. Ian Duncan advised that the technical capacity to put forward Black Spot project nominations was not available in this area and other regions had voiced similar concerns.  Action 01/2016-4: Ian Duncan will follow up, collect information and prepare a summary of the issues involved for those Local Governments requiring additional support in preparing project submissions for discussion at the next meeting. A query was raised in relation to the description of a new project in the Shire of Northam Great Eastern Highway (GEH)/Bedford Street/Tame Road/Keane Street/Berry Brow Road SLK 69.75 - 70.20 (page 3 of 3) as GEH is not a local road?  Subsequent to the meeting - It has been confirmed that this is a description issue only as this project located within the townsite of Bakers Hill is to widen/improve/modify parking, footpath, and turning movements in site streets along GEH.  Action 01/2016-6: Doug Morgan requested a list of all State Black Spot projects created more than two years ago that have still not been completed The Committee endorsed the 2016/17 program included in the agenda  Action 01/2016-7: Maurice Cammack to send request to the Local Governments to claim initial 40% before end of the financial year to help increase 2015/16 expenditure 7.

AUSTRALIAN GOVERNMENT BLACK SPOT PROGRAM

7.1

Summary and Financial Reports The Committee noted the Summary and Financial Reports for the period - 2015/16 (as at 29/02/16) National & State  Total expenditure was $0.46 million (25.3%) of the current budget which incl $0.00 million in carryovers). Local  Total expenditure was $10.25 million (47.6% of the current budget which incl $3.11 million in carryovers). General Discussion  The Australian Government provides 100% for projects at no cost to Local Governments and for this period 2015/16 WA received an extra $10.975m funding for projects in addition to its standard allocation of $6.585m per annum.  The Metropolitan Region comprises 60%of the program so delivery performance needs to be monitored.

8.

SUPPLEMENTARY FUND

8.1

The Committee noted the attached summaries. This report shows the running total paid out of the Supplementary Fund with $4,853,343 drawn down in 2015/16 approved by SAC. There were no draw downs on the Fund between the 10 December 2015 and the 23 March 2016 SAC meetings.

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9

REGIONAL ROAD GROUP ATTENDANCE The Committee noted the report attached to the Agenda. 7 of the 10 Regional Road Groups met in the period from January to 21 March 2016. A Regional Road Group Chairs Workshop was held on Thursday, 11 February and Ian Duncan talked across the nine major discussion points in the report with spotlight on access to gravel, high level of awareness of budget management and multi-year planning. Ian Duncan also noted that this workshop is planned to be held again in 6 months’ time in August. . Anthony Vuletta commented that it would be worthwhile for the Metropolitan Region Workshop including sub group chairs.

10.

ROAD CLASSIFICATION REVIEW

10.1

Classifications & Proclamations The Committee noted the attached table of classifications and proclamation actions. Doug Morgan advised that there are 4 current classification actions, nil proclamations and nil deletions in line with the pending completion of the Future State Roads project. There are still a number of proclamation actions ongoing due to Gateway and other ongoing major roadworks projects.

10.2

Future State Roads Project Doug Morgan advised that the latest meeting of the Future State Roads Project Working Group was held yesterday 22 March 2016.

10.3

Future State Roads Project – Revised Classifications & Principles Presentation Doug Morgan advised that the process has not been signed off yet and spoke to a map handout identifying 50 urban roads for consideration as possible future state roads as at February 2016. There are 2 stages involved first of which is Urban being undertaken currently with Rural to follow afterwards that has yet to commence and has no timeframe at present. The Main Roads Act is being updated so this is a good time to review road classifications as the last review was undertaken in the early 1990’s. The intent is to bring a strategic purpose to classification criteria. The current Act does not have a modern aspect e.g. major traffic route or major freight route. It is projected that if the roads under review go through the existing number of State roads will double It was asked if economic hubs were considered in the process and Doug Morgan advised that the method was limited to the official government position. As the process was not yet formal and the underpinning documents were not yet in the public domain it was asked how Local Government would be engaged in the process?  Action 01/2016-8: Doug Morgan agreed to the development of a consultation plan with Local Government. The general consensus among the Local Government committee members was that they only had a limited understanding of the issues involved.

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Shane Purdy advised that Paul Fourie from the Working Group had provided a briefing outlining the process and the integrated plan from the 3 government transport agencies.  Action 01/2016-9: Ian Duncan agreed to arrange a separate meeting to brief Local Government members outlining the Future State Roads process and integrated plan. 11

STATE ROAD FUNDS TO LOCAL GOVERNMENT AGREEMENT

11.1

Timeline for New SRFLG Agreement – Review and Development Maurice Cammack distributed a summary page of the report that provides a snapshot of road related expenditure by jurisdictions. The key point from the report excerpt showed that in regards to State funding to Local Roads network both WA and NSW had high proportions compared to the other states that had a lower level of funding contribution per kilometre of local road. Maurice Cammack advised that Ian Duncan had only just received a copy of the report. Ian Duncan replied that his initial thoughts were that the report highlights that the definition of a State and Local Road varies between State jurisdictions. WALGA will now read the document, develop a strategy forward as there appears to be a high risk for Local Government and stay engaged in the process as the Agreement is reviewed over the next 2 years.  Action 01/2016-10: Maurice Cammack to organise a meeting with Ian Duncan to discuss the report in more detail. Next for Main Roads will be to meet with Treasury to ascertain what information Treasury are requesting to feed back to Government.

11.2

Metropolitan Local Roads Program Manager (MLRPM) Members endorsed the principal of engaging a MLRPM. This submission follows on from a WALGA workshop held at the end of last year to look at ideas to improve project delivery performance in the Metropolitan area one of which was a centralised Program Management approach. Ian Duncan prepared an outline document for a Metropolitan Local Roads Program Manager (MLRPM) position role where the objective was to develop, implement and manage the function of Program Management reporting to SAC through Main Roads’ Executive Director Metropolitan and Southern Regions (EDMSR). Maurice Cammack then produced the position paper to submit to SAC for endorsement. The MLRPM will engage Local Governments, work with technical sub groups, recommend delivery of projects in the program and identify where risks are in project delivery that will allow early recommendations to SAC through EDMSR to strengthen and achieve required expenditure/delivery outcomes. Discussion was held around the process to engage a MLRPM through select tender on a performance basis as it was felt this may be too restrictive and a more open tender may attract other potential candidates.

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 Action 01/2016-11: It was agreed that out of session there should be further consultation on the procurement process and reporting structure criteria. 12

HEAVY VEHICLE ISSUES

12.1

Over Size Over Mass Unit, National Heavy Vehicle Regulator and Harvest Management Scheme Route Assessments are still a major issue with 365 still pending in the Main Roads Wheatbelt Region. The Main Roads Wheatbelt Regional Office has assigned additional resources to assessments and has engaged a consultant to assist in conducting some priority route assessments. All assessments still need to be approved by Heavy Vehicle Services.

13

EXCHANGE OF INFORMATION / GENERAL BUSINESS

13.1

2016 WA Transport and Roads Forum Ian Duncan thanked Main Roads senior staff for attending the Forum held on Friday, 12 February 2016 at El Caballo Resort and engaging with industry.

13.2

General Business Karen Chappel inquired about a CBH report to remove 102 sites over the next 3 to 5 years. Des Snook responded that Main Roads had not seen the document but when approved by the CBH Board the report should be released so there can be no briefings or decisions until then. Anthony Vuletta inquired about the South East Metropolitan Zone re an integrated transport strategy plan and starting a discussion. Doug Morgan advised that there is a draft plan due in the next 4 weeks and it will be a government decision as to what action they then take e.g. starts a robust discussion.

14

NEXT MEETING To be held at Main Roads at 10am on Friday, 29th July 2016.

15

MEETING CLOSE There being no further business the meeting closed at 11:50am.

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APPENDIX A Action List Summary of Actions (from the meeting of 23 March 2016) Action Required

Reference

Item/Officer

01/2016-1

5.1 MRWA (MC)

Provide a list of all Metropolitan RPG projects where 0% has been claimed for 2015/16

01/2016-2

5.2 WALGA (ID)

01/2016-3

Current Status

Due Date

New

29/07/16 Meeting

Add a new classification to the annual Regional Road Group KPI Report to summarise local government ROMAN ll data updated in IRIS that year

Will be included in next Annual Report

25/11/16 Meeting

5.3 WALGA (ID)

Provide a copy of the User Guide applied by the Shire of Harvey to calculate an amount for recovering road wear costs for Jeff Anderson

New

30/04/16

01/2016-4

6.2 WALGA (ID)

Follow up, collect information and prepare a summary of the issues involved for Local Governments requiring additional support in preparing Black Spot project submissions

New

29/07/16 Meeting

01/2016-6

6.2 MRWA (MC)

Compile a list of all State Black Spot projects created more than two years ago that have still not been completed

New

29/07/16 Meeting

01/2016-7

6.2 MRWA (MC)

With SAC endorsement of the 2016/17 State Blackspot program, send request to the Local Governments to claim initial 40% before end of the financial year to help increase 2015/16 expenditure.

New

29/07/16 Meeting

01/2016-8

10.3 MRWA (DM)

Develop a consultation plan with Local Government in regards to the Future State Roads Project

New

29/07/16 Meeting

01/2016-9

10.3 WALGA (ID)

Arrange a separate meeting to brief Local Government members outlining the Future State Roads process and integrated plan

New

29/07/16 Meeting

01/2016-10

11.1 MRWA (MC)

Organise a meeting with Ian Duncan to discuss the KPMG report in more detail

New

29/07/16 Meeting

01/2016-11

11.2 MRWA (MC)

There should be further consultation on the procurement and reporting criteria for assessment of candidates for MLRPM

New

Out of session

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04/2015-1

5.4 WALGA (ID)

Review the definition of commodity routes provided in the Commodity Route Supplementary Fund Application Guidelines before submissions are called for 2017/18 (before June 2016)

Ongoing

29/07/16 meeting

4/2015-3

8.2 MRWA (MC)

Review SFAA procedures to align with WANDRAA and advise RRG of changes to be implemented (complete). Main Roads’ website procedures still to be updated for consistency with email advice sent out (outstanding).

Ongoing

29/07/16 meeting

4/2014-10

4 MRWA (MC & ID)

In progress – Maurice to discuss with Ian

26/08/15 meeting

Out of session discussion reviewing the current management structure in SRFLGA Procedures and prepare a presentation on the proposed new structure clarifying accountabilities and responsibilities

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