Mt Hotham Alpine Resort Management Board Annual Report 2006— 2007

Prepared By: Mount Hotham Alpine Resort Management PO Box 188, Bright Victoria 3741 Phone: (03) 5759 3550 Fax: (03) 5759 3693 www.mthotham.com.au

3 Letter to the Minister

The Honorable Gavin Jennings Minister for Environment and Climate Change PO Box 500 East Melbourne Victoria 3002

Dear Minister,

2006/2007 Annual Report

The Mount Hotham Resort Management Board is pleased to present the annual report for 2006/2007, which includes statements of the Board’s performance and operations. It also includes the statement of accounts for the period 1st November 2006 to 31st October 2007 in accordance with Section 46-50 of the Financial Management Act 1994. The report is submitted to you for tabling in Parliament.

On behalf of the Board, management and staff, we would like to extend our appreciation for the support given to us by you and your staff and the staff of the Coasts, Alps and Recreation branch of the Department of Sustainability and Environment.

We look forward to working together in the future to realise our goals and aspirations.

Yours sincerely,

Geoff Provis Jim Atteridge CHAIRMAN CHIEF EXECUTIVE OFFICER

4 Contents

OVERVIEW Who are we 6 Mt Hotham—Our History 8 Key Performance Indicators/Financial Summary 9 Chairman’s Report 10 Chief Executive Officer’s Report 12 Mt Hotham Board 14

WORKFORCE AND ORGANISATIONAL DEVELOPMENT Organisational Structure 16 Mt Hotham Management Team 17 Resort Management Staff 18

CORPORATE SERVICES Corporate Governance 20

PUBLIC ACCESS, SAFETY AND EDUCATION Risk and Emergency Management 24 Skier Safety 25 Resort and Customer Services 26

MARKETING General Marketing 28 Communication 30

LAND MANAGEMENT AND ENVIRONMENTAL SERVICES Contract Administration 32 Business Development 33 Capital Works 34 Environmental Management 35

UTILITIES Sewage Treatment and Potable Waster 40 Solid Waste Management 41

BUSINESS UNDERTAKINGS Gas Operations 42 Ovens Alpine Nursery 43

FINANCIAL MANAGEMENT 44

APPENDICES Appendix One—Disclosure Index 60

5 Overview Who Are We

Our Mission: To manage the Mt Hotham Alpine Resort in a manner that is environmentally sustainable and economically viable for the social benefit of current and future generations.

THE BOARD’S OBJECTIVES Climate Change Our Strategic imperatives are to: Mt Hotham will remain strongly committed to a snow tourism in- • Be Solvent dustry and proactively plan for the impacts of climate change. • Be Legal Mount Hotham will remain viable for snow based recreation until at Be Safe • least 2020. Investment at Mount Hotham is already focusing on • Focus on Core Business broader bi-season (white and green) recreational opportunities. • Deliver Customer Satisfaction Resort Use and Visitation • Deliver Contemporary Infrastructure • Deliver Contemporary Services Mt Hotham provides the highest quality winter alpine experience in Australia. We facilitate safe access to our alpine environment for • Grow recreational use through both the winter and non winter seasons. • Deliver an Ethical Organisation Mt Hotham has experienced significant growth over the past two • Deliver a Performing Organisation decades; contrary to stagnant trends in this industry. Such sub- So that we: “Grow the common wealth of Victoria by stantial growth in visitation requires significant additional develop- the optimal management of the Crown Asset”. The ment of infrastructure, accommodation and skiing services. vision driving the Board’s agenda is clear and challeng- Development of Mt Hotham ing: “High on Hotham—Australia’s Premier Alpine Re- sort Destination.” Mt Hotham will continue to enhance the visitor experience by providing an attractive, ecologically sustainable mountain village that Underpinned by a focus on customer service and has local character and a distinct sense of place in the landscape. effective communication, the Board achieved this mission through quality services to: Design guidelines and the Alpine Resorts Planning Scheme are identified as key tools to improve the urban design of the resort. • The Crown Planning scheme amendments to the Mt Hotham section of the • Our Environment Planning Scheme has seen significant private investment in the • Our Customers Resort.

• Our Property Vibrant Mt Hotham

• Our Stakeholders, Investors and Developers Mt Hotham will be a vibrant economic entity making a strong con- • Our Corporate Performance tribution to Victoria and our local region.

The following six broad issues have been identified to Mt Hotham is a major contrubutor to the regional communities of help realise the vision. Detailed challenges, future op- providing both employment and financial benefits. It generates portunities and actions have been identified for each substantial commercial activity in sub alpine towns throughout the statement of strategic direction. year.

6 Our Vision: High On Hotham………….Australia’s Alpine Destination

Public Access, Safety and Education Environmental Management Operational services of the workshop, fleet management and All current and future management and development of Mt maintenance, transport, car parking and traffic control, snow Hotham will seek to be undertaken within an ecologically sus- clearing, cross country and skifield safety. Public infrastruc- tainable framework. ture, visitor safety, resort entry, snowmaking contribution, to- Mt Hotham’s Environmental Management Plan which in addi- bogganing, insurance (public liability), plant/vehicle workshop tion to flora, fauna, pest and weed management programs, is (part). strengthened by the adoption of the EPA Victoria’s Ecological Management of land stability is a specific program developed Footprint methodology and the inclusion of water conservation as a consequence of the Snowy Mountains Engineering Cor- program, will help move the resort towards sustainability. The poration (SMEC) Geotechnical and Land Stability Study of Mt Mt Hotham Alpine Resort has also invested in a sustainable Hotham in 1999. future by acquisition of the Alpine Nursery to ensure the future supply of plant stock for all of the alpine resorts. The Board has worked over the past four years to reduce the number of “very high” and “high” risk sites and has received Stewardship of Mt Hotham $2.943m of state government funding. The Board will work The Board actively embraces the stewardship role it holds at with State Government to secure appropriate funding for risk Mt Hotham and will work co-operatively with our local alpine management programs. Work done to date has been re- and sub-alpine communities. ported on separately each year to the state government in accounting for the grant funds allocated. The relationship with surrounding land managers will be strengthened to recognise synergistic relationships and maxi- A separate risk management assessment and geotech grant mize the diversity of experiences available to visitors. Indige- application is made under separate cover directly to DSE. nous Australians will be consulted as part of the planning proc- Corporate Services esses. Opportunities also exist for further co-operation between each resort. Compliance with State and Federal government legislation, regulation or policy, obliging the Board to act in a particular NATURE AND SCOPE OF ACTIVITIES way, or discharge a particular duty, or carry out a particular The Board is charged with the delivery of the following six core function, or exercise a duty of care. Ensure timely advice and services necessary to maintain the ongoing daily viability of the administrative services to the Board, contract administration, resort. and risk management.

Utilities Accounting, cashflow management, budgeting and reporting, internal audit control for insurance, resort entry, financial pro- Water, sewerage, solid waste, stormwater, car parks and roads bity and asset management. (overnight), insurance (assets), building maintenance, depreciation (part), plant/vehicle workshop (part) in compliance with Organisational development, OH&S, Workcover, human re- relevant legislation, in particular the Gas Safety Act, Safe source management, emergency management, records man- Drinking Water Act, SEPP Waters of Victoria and Road Man- agement, information technology, administrative systems and agement Act. process.

Land Management and Environmental Services Business Undertakings

Land use planning, monitoring and reporting, resort develop- Gas Supply ment compliance, property management, environmental man- To manage a LPG system incorporating a bulk gas storage agement, nursery, public health food and safety, training and and high pressured reticulation throughout the village in a safe capital works. and effective manner.

Marketing Alpine Nursery To operate a nursery facility that provides high quality alpine Marketing, business development, communications, public plants including grass, shrubs, herbs and trees to support all relations and information services. Alpine Resorts and National Parks where rehabilitation work is required.

7 Overview Mt Hotham—Our History

OUR HISTORY In 1962 the Department of Crown Lands and Survey assumed responsibility for Mount Hotham and appointed the European history begins in 1854 when Baron Sir Ferdi- Committee of Management who co-ordinated crown allot- nand von Muller first explored the slopes and named it ments subdivisions and provided services such as drinking after Governor Hotham. Graziers commenced stock water and limited electricity. During it’s 21-year tenure, the movement between Cobungra and the Ovens and Kiewa village Management Committee encouraged development Valleys. Grazing interest was soon followed by miners and most of the club lodges were built. In this period the Zoo looking for gold. Cart transport system was set up to ameliorate the effects of ribbon development along the top of a ridge. By 1965 there Rough tracks were created to give access to mines or to were 3 other tow ropes in addition to the Blue Ribbon Tow move stock. After a short period they also gave access to when the first chairlift , the Playground Chair was installed. tourists interested in seeing natural attractions including Mt Feathertop, Mt Loch and Mt Blowhard. Settlement be- In 1983 the Alpine Resorts Act was passed by State Gov- gan in 1863 when the first regular accommodation was ernment creating the Alpine Resorts Commission (ARC) to established at St Bernard by Mother Morrell, later becom- manage all Victorian Alpine Resorts. During the existence of ing known as "The St Bernard Hospice". Unfortunately, it the ARC a significant contribution to the development of burned down in the 1939 fires. A plaque near the Great Mount Hotham was made through the provision of adequate Alpine Road and Dargo Road Junction commemorates sewerage reticulation and treatment, reticulated electricity the spot. Mother Johnson Flat is named after the woman and gas and later the connection of the resort to the State who ran a wine shanty there. Grid. Water supply and treatment processes were upgraded, extensions were made to the car parking areas In 1874, Mt Hotham was visited by Governor Bowen and many of which were sealed, the Hull Bridge was built over his wife, and the area known as "Diamantina Springs" was the Alpine Road which was finally sealed between Harriet- named. 640 hectares was set aside for public usage and ville and Omeo. In this period bed development was signifi- the public encouraged to use the area as a holiday desti- cant, including growth at nearby Dinner Plain Village only nation. The desire of devotees to the new sport of skiing 10kms away. At the time the resort was growing quickly with led to increased demand for accommodation on Hotham the opening of 130 rooms in the Arlberg Inn in 1983. The not only for convenience but to provide shelter from ex- Lift Company established it’s own ski school and hire. More treme weather. lifts were installed including the Heavenly Valley Chair in In 1925 a cottage built of stone by Italian masons was 1987 and Village Chair in 1993. In 1988 Hotham Central christened "Hotham Heights". The cottage accommodated was linked to White Crystal to provide Ticket sales, Ski about 20 people including Bill Spargo, Country Roads School and Hire operations. Board patrolman, who was responsible for managing an In 1995 the Schumanns’s sold Ski Tows Ltd to BCR Man- improved Alpine Road between Harrietville and Omeo. agement who further developed the resort including the ad- The original cottage existed on the south side of the sad- dition of new ski terrain and the Orchard, Keogh’s and Got- dle between Mt Hotham and Mt Higginbotham until it was cha chairs in 1997 and the 53 chalet development of burnt in the 1939 bushfires. Hotham Heights. By Ministerial request in 1933 the Railways Department During the mid 1990s the ARC developed a much stronger took over management of Hotham Heights from Country commitment to the environment and in 1997 adopted the Roads Board. The railways were expanding throughout resort's first Environmental Management Plan. In April 1998 the State and promoted remote areas as destinations to the ARC was disaggregated and separate management encourage patronage. Victorian Railways played a part in boards created for individual Resorts. Mount Hotham Alpine the development of Hotham as an adjunct to its manage- Resort Management Board assumed it’s current responsibil- ment of the Chalet on Mt Buffalo. During the 30’s runs ity for management of the resort. In 2004 MFS Ltd acquired such as Varsity Drag and Blue Ribbon were cleared and the lift company. In 2006, the State Government, Resort areas such as Mary’s Slide named after an Australian Management Board and Skiing Company began an $8.4m Women's Champion. The Ski Club of Victoria was formed project to recycle waste water for snowmaking. and State and National ski championships were periodi- cally conducted on Hotham.

Rapid change occurred during the late 40’s to create an alpine recreational area to meet growing interest in snow sports. The first Club was approved for construction in 1944 by the Alpine Club of Victoria and soon after other lodges followed including Wangaratta Ski Club (1946), Edelweiss Ski Club (1947) and University Ski Club (1948).

Apart from the erection of clubs, emergency radio communications were installed and in 1951 a group of committed skiers constructed Hotham’s first ski tow. Beds at Hotham had grown from 27 at the end of the war to 115. Hotham commenced to become a “resort”.

8 Overview Key Performance Indicators / Financial Summary

2003/2004 2004/2005 2005/2006 2006/2007 KEY PERFORMANCE INDICATORS Actual Actual Actual Actual Customer Service Total Visitor Days 352,320 349,839 297,949 361,783 Market Share (Victorian majors visitor days) 28% 30% 32% 26% Accident Rate/’000 visitor days (Hotham Historical average) 1.85 1.35 1.33 1.37 Operations Property Revenue/FECA $42.82 $45.54 $46.22 $49.24 Infrastructure and Admin Costs/FECA $33.74 $40.70 $47.18 $50.07 Village, Visitor and Marketing costs/Visitor Day $8.18 $7.63 $8.88 $8.04 Resort Investment Value of private investment p.a $4.4m $9.0m $8.8m $1.5m Total Village Size (FECA*) 77,450 78,723 79,091 81,424 Total CAPEX (‘000) $1,567 $1.4m $6,264 $4,877 Environmental Management Potable Water Quality (Compliance with Australian Drinking Water Guidelines) 98% 93.5% 100% 98%

Waste Water Quality (Compliance with EPA Licence Limits) 80% 75% 98% 91% Solid Waste—kgs per visitor day (EPA Land Fill Levy) *connected value 4.31 5.53 7.3 2.95

Financial Outstanding Debtors as % of revenue 10% 9.6% 11.3% 5.87% Closing cash (‘000) $1,503 $1,301 $971 $1,609 Operating Cash Flow/Total Assets 2.1% 2.1% 2.8% 3.5% Current Assets/Current Liabilities 1.13 2.03 1.30 1.65 *FECA—Fully enclosed covered area (m2)

FINANCIAL REVIEW OF OPERATIONS AND FINANCIAL CONDITION The financial result for the year under review benefited from good winter visitation, higher site valuations and a contribution to the Water Recycling Project from MHSC of $2,090,000 which was treated as other revenue. On the expenditure side, higher operating costs were driven by snow conditions and costs associated with property matters, in particular preliminary costs associated with the New Hotham proposal. In addition the snowmaking plant and equipment portion of the Water Trust Recycling Project, valued at $1,163,713, was transferred to the Mount Hotham Skiing Company at the end of the year.

A financial summary of the year 2007 in comparison to the previous five years is included in the table below.

FINANCIAL SUMMARY

Date Revenue Expenditure

Site Annual Capital Visitors Grants Other Total Operating Depreciation Finance Support Total Net Rental Service Ingoings Sources Revenue Expenses Expenses Payments Expenditure Operating Charges Result 2003 964 2,157 184 1,822 1,220 1,244 7,591 4,806 433 96 219 5,554 2,037 ($’000) 2004 969 2,328 384 1,962 201 1,329 7,173 5,769 499 83 105 6,456 717 ($‘000) 2005 1,220 2,364 437 1,820 25 1,367 7,233 6,110 576 56 135 6,877 356 ($’000) 2006 1,096 2,559 456 1,587 2 1,446 7,146 5,792 584 0 150 6,526 620 ($’000) 2007 1,210 2,799 182 1,967 5 3,514 9,678 7,515 643 94 180 8,432 1,246 ($’000)

9 Overview Chairman’s Report

Geoff Provis

Chairman Water Bombing helicopter refilling from Loch Dam

Welcome to the 2006/7 Mount Hotham Alpine Resort Ministerial Changes Management’s Annual Report. The Board remains committed to the aspirations set out in the Alpine Resorts July saw a new Minister appointed after the resignation of 2020 strategy and the Mount Hotham Strategic Manage- Premier Bracks and Minister Thwaites from public office. ment Plan and has set an agenda to manage this Crown The Board had worked closely with Minister Thwaites, es- asset to its optimal potential. Six programs have been pecially in relation to the ongoing Water Trust Project, and identified with achievable actions for each including Utili- we wish to thank both Minister Thwaites and Premier ties, Public Access, Safety and Education, Corporate Bracks for their considerable support of the Board and Services, Land Management and Environmental Ser- wish them well in their future endeavors. The Hon John vices, Marketing and Business Undertakings (Gas sup- Brumby was appointed as Premier and the Hon Gavin ply and Nursery). These programs flow from the Alpine Jennings as Minister for Environment and Climate Change. Reform Package announced by the Minister on 16th Oc- The Board looks forward to working with Minister Jennings tober 2005 and our Annual Report reflects upon our and Minister Holding in securing a better future for Hotham. achievements in these six actions to date.

Appointment of a new Board This year began with the early threat of bushfires in the surrounding national park impacting on the day to day 2007 also saw the end of the current three year term for operations of the resort in December. April saw the end the Board. A new Board was appointed in April. Myself, of the current three year term of the Board and the an- Tim Piper, Helen Moran, Rod Sloan and Wayne Talbot nouncement of a new Board including two new mem- were reinstated and we extend a warm welcome to Debbie bers. The winter season started with good early winter Goodin and Nicole Feeney. Debbie comes from a strong snow conditions and it was encouraging to note visitor financial background and Nicole is a construction lawyer. numbers for the 2007 season reflected a regained confi- They have already provided a fresh perspective and new dence in snow conditions after the disappointing 2006 season.

ideas. I must give a special thank you to the departing The jointly funded $8.4m project between the Victo- members Annelies Zirknitzer and Helen Hughes for rian State Government, Mount Hotham Skiing Com- their tireless efforts and outstanding contributions to the pany and Mount Hotham Resort Management Board Board during their terms. is an example of the Board’s commitment to the environment and providing a sustainable future for Water Trust Project the Mount Hotham Resort. Once again, congratula- Construction of Stage Two of the Water Trust project tions must go to Tom Pelly (Project Manager) and began during the summer period. In addition to the his staff for their outstanding efforts in completing 27ML capacity Loch Dam constructed the previous the project to date. year, works began on the upgrade of the sewerage Hotham Village Redevelopment treatment plant and construction of the pipeline connecting the sewerage treatment plant and dam. The Amendment C17 to the Alpine Resorts Planning Loch Dam provided Mount Hotham Skiing Company Scheme resulted in the opportunity for redevelop- with the ability to make 177,977 cubic meters of snow ment of a vibrant village heart for Mount Hotham. during the winter season. The installation of snowmak- Negotiations between developers and the Resort ing guns in the Heavenly Valley area during the 2007/8 Management Board are continuing including the summer will enable Mount Hotham Resort to provide a proposal of the realignment of the Great Alpine more diverse skiing experience for a longer period to Road and the construction of “Bale”, featuring 44 our visitors. luxury apartments, retail outlets, restaurants and

bars.

Stakeholder Communications

The Board remains committed to improving communications with our stakeholders. The annual stakeholders meeting was held in March 2007 at Holmes- glen TAFE in Melbourne and specific topics covered included resort operations, the future Hotham Vil- lage redevelopment and the Amendment C17 to the Planning Scheme, other upcoming developments, the Water Trust project and the viability of the resort.

December 2006 saw Mount Hotham once again threatened by bushfires. Resort Management implemented a communication network via email and the website advising our stakeholders of current conditions.

Acknowledgements

Finally, I would like to acknowledge the tremendous Works in progress to upgrade Sewerage Treatment Plant efforts of Jim Atteridge and the staff of the Mount Hotham Resort Management Board over the past year. A marvellous effort was contributed not only by the permanent core staff but all the seasonal staff who provide dedicated services during the winter months.

Geoff Provis Chairman Resort Management staff working on construction of the pipeline Mt Hotham Alpine Resort Management Board

11 Overview CEO’s Report

The Water Trust Project is nearing completion and once again credit must go to Tom Pelly for all his work to date on delivering this outstanding project.

Investment in the resort remains strong with a new 20 lot subdivision of freehold land within the village hub producing strong sales.

A New Board

It is with great appreciation that I acknowledge the work of our previous Board members and extend a warm welcome to Nicole Feeney and Debbie Goodin. I would like to thank Annelies Zirknitzer and Helen Hughes for their work and their commitment to the Board.

Water Trust Project

The second stage of the Water Trust Project began with the upgrading of the Sewerage Treatment Plant and the laying of pipelines connecting the plant with the Loch Dam constructed the previous summer. I would like to pay tribute to the capability of the Resort Management staff under the management of Tom Pelly in delivering this project to date. The concept, design, contract administration and implementation of this magnificent project was all completed in house, for which all staff involved should be very proud.

The Loch Dam constructed the previous year proved its worth on several fronts, providing water for water bombing helicopters fighting the fires in the surrounding national park as well as providing Mount Hotham Skiing Company with the capability to make 177,977 cubic meters of snow. Summer 07/08 will see Mount Hotham Skiing Company lay snow making pipelines and install- Jim Atteridge ing guns over the Heavenly Valley area increasing the Chief Executive Officer snowmaking area from 17 hectares to 25 hectares and further expanding the viability of the resort.

I have pleasure in presenting the Mount Hotham Alpine Resort Management Board Annual Report for 2006/7. Re- sort Management has focused on delivering year round services strongly centered on customer satisfaction. The Board recognises that the key to the growth of the resort stems from perception of value for our customers. I would like to take this opportunity to thank our staff for their many efforts above and beyond their regular duties in providing these services.

2007 proved to be an eventful and successful year for Mount Hotham Resort Management Board with a new Board appointed in April and a new Minister announced in July. Operationally, bushfires interrupted our summer works program and winter proved busy with strong visitation numbers.

The challenging 2006 season left financial constraints for ongoing works during 2007. The threat of bushfires once again further compounded the problem. Operations during the fire period were slowed if not completely suspended as staff attended to personal commitments off the mountain. I would like to particularly thank Larry Doyle and Greg Works at the Sewerage Treatment Plant continue O’Donohue for their dedicated work throughout the resort

during this period.

Capital Works A number of club lodges completed renovations during With the exception of the Water Trust Project, limited capi- the summer and the Board developed a colour palette tal works were completed during the summer of 2006/2007 complimenting the natural surroundings to assist in reno- due to tight budget constraints. The bushfires also put fur- vations and construction of new dwellings. ther strain on limited funding with the Board investing almost $20,000 in fire fighting equipment. The investment of Winter Visitation new equipment and the implementation of fire management The 2007 season provided excellent snow conditions plans now sees the resort in a much stronger position to early on in the season, with the Heavenly Valley chairlift face such future threats. Other CAPEX works included con- operational from late June, providing a variety of ski-able tributing to the rebuild of the Silver Brumby Hut, the urban terrain in time for the July school holidays. The resort design project at the Big D, office renovations and the pur- had a new record of visitor days totaling 361,783 which chase of fleet vehicles including a new snowmobile. was also an increase of 21% on 2006. Visitor numbers Planning and Development for the 2007 season totaled 135,582 an increase of 33%

to 2006.

Marketing and Communications

The second year of the Mountain Fresh Festival proved extremely successful. In showcasing the Board’s commitment to a vibrant year round resort, our Marketing Manager is working on creating further festivals during the summer and winter months.

The Board remains committed to providing up to date communications to stakeholders and customers via established networks such as the website, briefing meetings and talks and information packs to schools and other groups.

Search and Rescue

I am pleased to report there were no major search and Rebuilding the Silver Brumby Hut rescue events during the year. Our dedicated team of Strong interest in investment in Mount Hotham continues. ski patrollers work tirelessly each year to ensure the A 20 lot subdivision of free hold land at Mount Hotham was safety of visitors to the resort. Resort Management approved with construction of new dwellings due to begin would also like to thank Hotham Police, Bright SES and next year. Construction of the Higgi Drive Apartments and the CFA for their help during the year. Ultima 2 was completed. A planning permit for the upgrade Acknowledgements and construction of the Three Huts Walk was lodged. This walk will enhance the summer visitor experience of the I would like to thank our major sponsors Ford and other resort showcasing important ecological and historical sites key sponsors particularly K2, Bolle, Skins, Rud Chains, of significance perhaps overlooked by the winter visitor. ANZ and Edge FM.

I would like to congratulate the Resort Management The planning department is working closely with DSE in team for a year of achievement and consolidation. As achieving this project. always I am grateful for the contributions of our seasonal staff during the winter months and look forward to their return next season. I must acknowledge the work of management and staff, they continue to build our valuable stakeholder relationships and exceed customer expectations for consistent, quality service.

Jim Atteridge Chief Executive Officer

Construction of the new Higgi Drive Apartments Mount Hotham Alpine Resort Management Board

13 Overview Mount Hotham Board

The Alpine Resorts (Management) Act 1997 (the Act) came into force on 30 April 1998 when the responsibility for the day-to-day management of the Mount Hotham Alpine Resort was transferred to the Mount Hotham Alpine Resort Management Board.

Dates Geoff Helen Tim Rod Helen Wayne Annelies Debbie Nicole Provis Hughes Piper Sloan Moran Talbot Zirknitzer Goodin Feeney

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July 07 √ √ √ √ √ √ √

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Terms of Reference Audit Sub Committee

In 1999 the Audit Sub Committee adopted the principles of The Audit Committees: Best Practice Guide. In 2001 the Audit Sub Committee assumed responsibility of the additional portfolio of Risk Management and Occupational Health and Safety. Nicole Feeney and Wayne Talbot are independent members of the Audit Sub Committee.

Terms of Reference Remuneration Sub Committee 1. To determine employment policy and monitor within Government Business Enterprise and other applicable Government Guidelines. 2. To ensure probity in matters pertaining to all remuneration issues and Human Resources management. 3. To research/review and recommend to the Board the remuneration of the CEO. 4. Approve remuneration packages and appointments of direct reports to the CEO. 5. To develop and monitor the performance review of the CEO. 6. To develop in association with the CEO the performance review process of the CFO. 7. To monitor all Board staff appointments consistent with the organisational structure and within the total salary budget approved by the Board. 8. To consult with CEO in reference to Board staff remuneration and ongoing performance reviews.

14 Overview Mount Hotham Board

Geoff Provis (Chairman)

Currently a solicitor working in insurance law at Russell Kennedy. Geoff is the President of the Law Institute of Victoria as well as a Sessional Commissioner of the Victorian Commission for Gambling Regulation, and is a member of the Alpine Resorts Co-Ordinating Council. He sits on the Victorian Council of Law Reporting and the Supreme Court of Victoria Board of Examiners. Geoff was for many years a board member of the Lord Mayors Charitable Fund and the Law Aid Committee which provides funding for worthy litigation which could not otherwise proceed. Geoff is an avid skier who learnt to ski at Mt Hotham many years ago.

Debbie Goodin (Deputy Chairperson)

Debbie has an Economics Degree, is a Chartered Accountant, is a Leadership Victoria fellow and qualified Com- pany Secretary. She has held senior finance, project delivery and general administrative positions in both the public and private sectors and is employed as an executive in a leading public company. Debbie is a director of Aged Care Services and a member of the Finance and Investment Committee for Breast Cancer Network of Aus- tralia. Debbie and her family are keen skiers.

Helen Moran

Helen has been associated with Mt Hotham since 1985 and currently is the Group General Manager for Australian Alpine Enterprises Pty Ltd (AAE) Property Division. Helen has played a key role in development projects undertaken by AAE at the resort since 1995 providing invaluable experience in the areas of planning, administration and management. She brings a high level of marketing, organisational and communication skills and experience in resort management and development of business initiatives to the Board.

Tim Piper

Tim is the Victorian Director of the Australian Industry Group which is one of the most influential industry associa- tions in the country. He is a lawyer and former journalist and holds a Master of Business Administration. Tim is also Chairman of the Industry Capability Network and the VLESC Manufacturing Skills and Training Taskforce and also sits on the Microsurgery Foundation Board. Tim is a passionate proponent of Mt Hotham and has sat on the Mt Hotham Resort Management Board for the past six years.

Rod Sloan

Rod had extensive experience in engineering and planning for both local government and private business. He has run his own consulting engineering firm for the past 12 years. His previous work with local government provides a strong understanding of the challenges in providing services to a community on a daily basis. He has been skiing for the past 13 years predominately at Mount Hotham with his keen skiing family.

Wayne Talbot

Wayne is a retired partner of PricewaterhouseCoopers consulting practice. He is currently the Managing Director of a management consulting practice which specialises in helping enterprises achieve their growth objectives. He has a long association with Mt Hotham being a founding member and currently Life Member of Gravbrot Ski Club, and is currently Chairman of Lawlers Apartments Pty Ltd, the holding company for Lawlers Apartments. Along with his broad knowledge of Hotham and its needs, Wayne brings to the role of Board member extensive commercial and financial experience, gained across a wide variety of private and public sector enterprises.

Nicole Feeney

Nicole is a construction lawyer at Lander & Rogers. She is a Law Institute of Victoria representative on the Su- preme Court Rules Committee and on the County Court Building Cases Users Group. She has previous board experience having been on the Board of UFS Dispensaries Ltd, a not for profit company which owns and operates a number of pharmacies in and around Ballarat in western Victoria for 6 years. Nicole learnt to ski at Hotham 6 years ago. A regular visitor ever since, she recently became a member of Anton Huette.

15 Workforce & Organisational Development Organisational Structure

Objective To ensure: that the Board organise its human resources in a way that will deliver the most effective service to the community, whilst recognising it’s obligations to staff.

So that: organisational development, OH&S, Workcover, human resource management, emergency management, records management, administrative systems and processes all receive effective ongoing management.

ORGANISATIONAL STRUCTURE In carrying out its functions and powers, each Board acts on behalf of the Crown (S35). A Board may employ any persons it considers necessary for the purposes of the Act (S44).

The obligations placed on the Board are discharged with the creation of an administrative organisation with appropriate structure, systems, procedures, processes, and staffed by qualified and competent staff willing and capable of executing the Board’s directions.

The Board appoints the CEO and on advice from the CEO, adopts a corporate structure. The Board delegates to the CEO such authority and power as is necessary for him to staff the organisation and manage the resources made available in the annual budget process to agreed outcomes.

The Board has adopted the following organisation structure:

BOARD

Jim Atteridge Chief Executive Officer

Jessica Rose Renee Cole Gerry Connell Nicole Epema Tom Pelly Ian Young Paul Flint Rob Wesley Manager, Manager, Chief Financial Manager, Manager Manager, IT Manager, Land Manager, Capital Marketing Administration and Officer Operations Environmental & Management Works Human Resources Technical Services

Liza Coventry Mel Williams Shane Scott Gordon Thomas Kevin Raymond Shirley Sizeland Office Accountant Workshop Project Admin IT Tech Officer Property Coordinator Manager Officer Officer

Roger Packham Manager Waste Georgina Kerry Andrew Keily Water Boardman Kondraschek Mechanic Admin Finance Bev Lawrence Assistant Officer Environmental Officer Shannan White Greg O’Donohue Larry Doyle Admin Grooming and Director Ski Patrol Assistant Trails Operator

Gavin Moody Richard Paschke Senior Plant Op- Manager Solid erator Waste Operations Steve Gribble Plant Operator

Annie Marlow Nursery Supervisor

Yvette Hind Nursery Attendant

Regina Losch Nursery Attendant

Rebecca Read Nursery Attendant

Philip Horner Nursery Attendant 16 Workforce & Organisational Development Mount Hotham Management Team

Gerry Connell Jim Atteridge Renee Cole Chief Chief Executive Manager, Financial Officer Administra- Officer tion

Ian Young Paul Flint Rob Wesley Jessica Rose Tom Pelly Nicole Epema Manager, Manager, Manager, Manager, Manager, Manager, IT Land Capital Works Marketing Tech. Serv. & Operations Management Environment

Jim Atteridge — CHIEF EXECUTIVE OFFICER Appointed in this position in 1998. Holds a Masters Degree in Environmental Planning and has had an extensive career in local government with a focus in the areas of Recreation Planning and general management. His diverse experience has been built upon working with Melbourne City Council, Brisbane City Council and as CEO, Hervey Bay City Council in Queensland.

Gerry Connell — CHIEF FINANCIAL OFFICER Appointed in this position in 2001. As a Certified Practicing Accountant (CPA) Gerry’s experience has been built working on company security for the Victorian Hospitals Association, Plan International and in the tourism industry in Queensland. Responsible for accounting, cash flow management, budgeting and reporting, internal audit, insurance, financial probity, asset management and risk management.

Renee Cole — MANAGER, ADMINISTRATION AND HUMAN RESOURCES Appointed in this position in March 2006. Started her career with Mt Hotham in 2003 as Office Coordinator and moved into the position of Office Manager in 2004. Previous experience 11 years in administration and office management. Responsible for human resources, corporate governance, board services, emergency management, OH&S, records management and administrative systems and process. Also responsible for assisting the CEO as Executive Officer.

Ian Young—MANAGER, IT Appointed in this position in 1999. Started his career with Mt Hotham in 1996 as a Projects Officer. Holds a Graduate Diploma in Information Technology and Associate Diploma in Electrical Engineering. Responsible for information technology, organisational communications and RMB electrical services compliance.

Paul Flint—MANAGER, LAND MANAGEMENT Appointed in this position in 2006. Previously Senior Regional Planner with Department of Sustainability and Environment. Previous experience 25 years local government dealing in areas of health, building, planning, community services and contract management. Responsible for Planning, Property Development, Capital Ingoings, FECA data, Property Management, Licences, Environmental Health Services and Building Services

Rob Wesley—MANAGER, CAPITAL WORKS Appointed in this position in 2005. Previously Capital Works and Project Officer since 2000. Over 30 years of Hotham and Alpine experience in structural engineering, architectural and engineering drafting, shop detail drafting, project management and contract administration. Registered Building Practitioner. Responsible for capital works, building maintenance and community facilities.

Jessica Rose—MANAGER, MARKETING Appointed in this position in 2006. Started her career with Mt Hotham in 2004 in Marketing and Special Projects. Holds a Degree in Business and Degree in Arts. Responsible for festival and event management, stakeholder communications, grant procurement, public relations, media, sponsorship management and research.

Tom Pelly — MANAGER, TECHNICAL SERVICES AND ENVIRONMENT Appointed to this position in November 2005 previously Manager Resort Operations from 1998. A keen skier who lives in Bright with his family, Tom has an in depth knowledge in all aspects of the Resort’s infrastructure systems. He possesses a strong technical background equipping him with the necessary skills to manage key infrastructure systems. Tom is an experienced project manager and has undertaken environmental studies that complement his role in the organisation. Responsible for environmental management, water, sewage, drainage, Solid waste disposal, road management, Geotech, Nursery, Watertrust Project, Ski Patrol and gas.

Nicole Epema—MANAGER, OPERATIONS Appointed to this position in November 2005. Started her career with Mt Hotham in 1986 as a storeperson and moving into the position of Traffic and Transport Manager in 1999. Responsible for supervision of traffic and transport, gate entry, garbage collection, grooming, workshop and fleet management.

17 Workforce & Organisational Development Resort Management Staff

MANAGEMENT AND STAFF TRAINING AND DEVELOPMENT

The day to day running of the organisation is undertaken Mt Hotham Resort Management encourage the training by the Chief Executive Officer and a small year round and development of our staff through work related work force, which is supplemented by seasonal staff and training and external study. volunteer ski patrollers. All staff are employed under the Staff Induction Program Mount Hotham Resort Management Certified Agreement 2005. The staff induction program is a compulsory program that is attended by all new employees and provides an WORKFORCE DATA overall induction into employment with MHARMB. A full review of this induction program will take place over the Workforce 2006 2007 2007-2008 summer with a new program to be adopted (F = Female M = Male) for the 2008 season.

Management / Administration 8F/6M 9F/8M Other Training

2006-2007 was an extremely productive year in training Resort Operations 2F/8M 6M/6F with staff attending the following courses: • First Aid Level II • Risk Management KEY STAFFING EVENTS OF 2006/2007 • Emergency & Recovery Management • Appointment of Shane Scott from mechanic to • Avalanche Training Workshop Manager (replacement position) • Explosives Training

• Spotters Course • Appointment of Andrew Keily to mechanic (replacement position)

18 Workforce & Organisational Development Resort Management Staff

Ski Patrol

Bill Barker SEASONAL STAFF David Chlebna Operations Christian Corscadden

David Abbott Ian Crawford Joseph Bastida Rob Davey Eric Beney Larry Doyle Troy Benson James Elder Glen Billman Allen Feore John Carey Mark Fordyce-Burke Adam Clarke Wayne Handley Robyn Cook Lauren Konik Gary Coombe Peter Mack John Corbett Dan Mills (USA) Graeme Couch Natascha Pritchard Shannon Elliott Gary Puddy Eileen Ferguson Fran Richards Neil Harrington Paul Rosevear Bill Hayes Victoria Schmidt Josie Hendrix Hamish Sutherland John Hill Simon Taylor EQUAL EMPLOYMENT OPPORTUNITY Ron Jamieson Ski Patrol Volunteers Anne Johnson The Board is an equal opportunity employer and all ap- Kirk Amos Graham Johnson pointments and promotions are merit based and based on Peter Blake Len Kilpatrick the principles of the Public Administration Act 2004. The Simon Brand Peter Leighton Staff Development and Training program continued this Keith Brandenberger Ian “Macca” McIntyre year again identifying areas for development and en- Alexander Coleman Eddie Maguire hancement of skill levels. Simon Dodd Kevin Mock INDUSTRIAL RELATIONS John Dorward Ed Nolle Nick Fenwick Michael O’Reilly There were no industrial disputes during the reporting Libby Fox Noel Paten period. The current EBA agreement was negotiated for a Inga Gilchrist Graham Payne 3 year period and is due to expire in 2008. The Board will Joseph Gunn Jeremy Reynolds begin negotiations on a new EBA in 2008. As part of the Simon Harrod Donald Rupp induction process prior to winter, all seasonal staff receive Tony Hart Evelyn Rupp a full briefing on the Agreement with no issues being re- Barrie Heard Colin Sedgman ported. Damian Lindau Allan Spence OCCUPATIONAL HEALTH AND SAFETY Tim Martin Neil Stevenson Brendan Moore Deborah Stoddart OH&S is a significant component of our Risk Management Brett Norris Robert Studd policy and MHARMB is totally committed to establishing a Randy Reusch Nigel Sutton healthy and safe work environment for our staff, contrac- Leslie Roberts Stuart Swann tors and visitors by: Matthew Sexton Chris Taylor John Steen • Encouraging individuals to practice work safety by Trevor Taylor Malcolm Styles providing information, instruction and training Brian “Butch” Thomas Joel Templar Kenneth Topfer • Provide safe plant and systems of work Andrew Tucker Joy Young Jim Vavaroutsos • Ensure compliance with legislative requirements and Lilly Vavaroutsos current industry standards. David Wilson Occupational Health and Safety Committee The OH&S Committee meets on a regular basis and has been actively engaged in:

• Writing policy and procedures, including management and action plans

• Conducting workplace inspections

• Conducting training sessions

• Reviewing the OH&S Management System

19 Corporate Services Corporate Governance

Objective To ensure: compliance with State and Federal Government Legislation, regulation or policy, obliging the Board to act in a particular way, or discharge a particular duty, or carry out a particular function, or exercise a duty of care.

So that: the Board can provide effective and consistent governance functions, maintain planning systems and ensure compliance with reporting requirements to deliver an ethical and performing organisation providing customer satisfaction, infrastructure and services.

Mount Hotham has a long and rich history. Originally ROLE OF THE BOARD gazetted as a public recreation reserve in 1874, Mt The Mount Hotham Alpine Resort Management Board consists Hotham has been managed in the public interest by a of seven members appointed by the Minister for Environment variety of formal structures. and Climate Change. Board appointments are skills based, with experience in the areas of business, tourism or marketing. The Created pursuant to the 1998 Alpine Resorts role of the Board is to manage the operational and business (Management) Act 1997, the current management aspects of Mt Hotham. structure comprises an independent skills based Board appointed by the Hon John Thwaites MP Minister for The inaugural Board officially took over control of the Resort on Environment, Water and Climate Change and reporting April 30, 1998. Prior to this all Alpine Resorts were managed directly thereto. collectively under the jurisdiction of The Alpine Resorts Com- mission. Board members are appointed for a maximum term of An Alpine Resorts Co-Ordinating Council (ARCC) was three years. also established at this time, and this Council provides policy advice to the Minister. The relationship of the FUNCTIONS OF THE BOARD Minister, the Alpine Resorts Co-Ordinating Council and Section 38 of the Act specifies the functions of the Board: the Resort Management Boards is shown below. aa) to plan for the development, promotion, management and use, of each such alpine resort in accordance with the ob- LEGISLATIVE BASE ject of this Act The Alpine Resorts (Management) Act 1997 (the Act) ab) to- came into force on 30 April 1998 when the (i) develop and promote; or responsibility for the day-to-day management of the (ii) facilitate the development or promotion by Mount Hotham Alpine Resort was transferred to the others of the use of each such alpine resort Mount Hotham Alpine Resort Management Board (the in accordance with the object of this Act; Board). The legislation also created the Alpine Resorts ac) to manage each such alpine resort in accordance with the Coordinating Council (ARCC) which acts as the forum object of this Act; and advisor to the Minister on common Resort or ad) to contribute to the development of the Alpine Resorts alpine tourism issues. Strategic Plan and other strategic planning for alpine resorts as a whole; ae) to undertake research into alpine resort issues; af) to contribute to and support the operation of the Council; ag) to prepare and implement a Strategic Management Plan for each such resort; ah) to expend or apply revenue of the Board in accordance with a direction of the Minister under section 36(1A). a) To act as a committee of management of any Crown land deemed to be permanently reserved under the Crown Land (Reserves ) Act 1978 in the Resort; b) To contribute, together with Tourism Victoria, established under the Tourism Victoria Act 1992, and the Council, to the overall promotion of Alpine Resorts;

c) To develop a tourism and marketing strategy and to pro- ESTABLISHMENT OF BOARDS mote the Resort; The Mount Hotham Alpine Resort Management Board d) To provide services in the nature of: garbage disposal, is established by the Minister under Part 4 Section 34 sewerage, drainage, roads, transport, gas, water supply, of the Act, and under this section the Board: electricity and fire protection for the resort and to charge contributions for the provision of those services; is a body corporate with perpetual succession; e) To collect fees prescribed by the regulations for the resort; has a common seal; f) To attract investment for the improvement of the Resort in may sue or be sued in its corporate name; respect of which the Board is established; may acquire, hold and dispose of real and g) To carry out any other function conferred on the Board by personal property; this or any other Act. has all the rights and liabilities of a body 20 corporate. Corporate Services Corporate Governance

FREEDOM OF INFORMATION The Mt Hotham Alpine Resort is considered to be a ‘Government Agency’ under the terms of the Freedom of In- formation Act 1982. Accordingly, it is required to comply with the procedures that have been prescribed under which members of the public may gain access to information held by agencies.

A decision to release information is made by either the Princi- pal Officer or an Authorised Officer. The MHARMB has determined that the Authorised Officer for the Resort is the Man- ager, Human Resources. One request was made in 2006-07 for information under the Freedom of Information Act 1982 for a fee of $22.00. The request was reviewed by the Board and treated to comply with the Act. CONSULTANCIES

The Freedom Of Information Officer: There were 9 consultancies engaged by the Board during Miss Renee Cole, Manager Administration and Human this financial year. The total cost of all consultancies Resources amounted to $104,539. There were no consultancies in PO Box 188, Bright 3741 excess of $100,000.

Ph: 03 57593550 Fax: 57593693 COMMUNITY AREAS Email: [email protected] Cultural Diversity RELEVANT INFORMATION In line with the government’s multicultural policy, the Board The following is retained by the accountable officer and is has maintained the signage systems which use graphic available to the relevant Minister, Members of Parliament and symbols to advise Resort users of important features about the public on request: Resort use. This has been particularly appropriate in alert- FRD 22 Statement of Availability of other information ing non-English speaking visitors to the existence of safety • Statement declaring pecuniary interests completed by all hazards and to any limitations on the use of particular ar- relevant officers eas within the resort.

• Details of publications produced and where available Women

• Details of changes in prices, fees, charges, rates and lev- In line with the Government’s Office of Women’s Policy, the ies Board has appointed three female senior managers and a • Details of any major external reviews number of full and part time female employees. The Board • Details of major research and development activities is committed to providing equal opportunity advancement • Details of overseas visits for all employees and has adopted a recruitment structure • Details of major promotional, public relations and market- based on a merit based selection process. The Board is ing activities also committed and will continue to facilitate where possible work and family responsibilities for all employees. • Details of assessments and measures undertaken to improve occupational health and safety of employees Youth

• General statement on industrial relations and details of In line with the Government’s vision for young people, the time lost through industrial accidents and disputes Board employees a work experience youth every season • Major committees sponsored, purposes of committees and actively encourages participation by the Alpine Leader- and achievements. ship School. MHARMB also provides regular environmental and safety student talks throughout the winter sea- NATIONAL COMPETITION POLICY son. The Board is one of six independent Alpine Resort Manage- ment Boards within Victoria. It has established its own pricing Indigenous Affairs regime within the ceiling prescribed by the Alpine Resort The MHRMB is committed to working closely with the local (Management) Regulations 1998. Indigenous community in developing partnerships to The Board, as the independent manager of the resort’s as- achieve Aboriginal aspirations for land, culture, heritage, sets, purchases services and goods in line with Government family and community. The Board liaises with various lead- Purchasing Board’s guidelines. ers and councils in both capital works and planning projects within the resort. There is also an opportunity to explore the The Mt Hotham Resort Management Board complies with the development of Indigenous cultural tourism through inter- Governments policies for National Competition Policy. pretation of walks and sites. We look forward to working MAJOR CONTRACTS closely with the Mt Hotham Indigenous community on our

The Board did not enter into any contracts greater than $10 future projects. million during the reporting period.

21 Corporate Services Corporate Governance

WHISTLEBLOWERS PROTECTION ACT 2001 A disclosure about improper conduct or detrimental The Mt Hotham Alpine Resort Management Board is action by Mt Hotham Alpine Resort Management Board, subject to the Whistleblowers Protection Act 2001 or its employees, may also be made directly to the which encourages and facilitates disclosures of Ombudsman: improper conduct by public officers and public bodies and provides protection for persons who make those • The Ombudsman Victoria disclosures and to persons who may suffer reprisals in Level 22, 459 Collins Street, Melbourne 3000 relation to those disclosures, and for matters disclosed (DX 210174) to be properly investigated and dealt with. Internet: www.ombudsman.vic.gov.au Email: [email protected] Mt Hotham Alpine Resort Management Board is Ph: 03 96136222, Toll Free: 1800 806 314 committed to the aims and objectives of the Ombudsman: Dr Barry Perry Ph:03 96136202 Whistleblowers Protection Act 2001 and values integrity and accountability in its administrative and The Protected Disclosure Coordinator is responsible for management practices. It fully supports the processes the following: of disclosure that reveal corrupt conduct, • Receive all disclosures forwarded from the mismanagement of public resources or conduct protected disclosure officers involving a substantial risk to public health and safety, • Receive all phone calls, emails and letters from or the environment. members of the public or employees seeking to Mt Hotham Alpine Resort Management Board has make a disclosure developed a system, based on guidelines issued by the • Impartially assess each disclosure to determine Ombudsman, to deal with disclosures of improper whether it is a public interest disclosure; conduct or detrimental action by the Mt Hotham Alpine • Refer all public interest disclosures to the Resort Management Board or its employees. The Ombudsman detailed procedures have been communicated to all • Be responsible for carrying out, or appointing an employees and Board members. A copy of the investigator to carry out, an investigation referred to procedures is available for public inspection at Mt the public body by the Ombudsman Hotham Alpine Resort Management Board’s offices, • Be responsible for overseeing and coordinating an Great Alpine Road, Mt Hotham, Victoria. investigation where an investigator has been appointed Disclosures of improper conduct or detrimental action • Appoint a welfare manager to support the by Mt Hotham Alpine Resort Management Board, or its whistleblower and to protect him or her from any employees, may be made to the following: reprisals The Protected Disclosure Coordinator: • Advise the whistleblower of the progress of an Miss Renee Cole, Manager Administration and investigation into the disclosed matter Human Resources • Establish and manage a confidential filing system PO Box 188, Bright 3741 • Collate and publish statistics on disclosures made Ph: 03 57593550 Fax: 57593693 • Take all necessary steps to ensure the identity of Email: [email protected] the whistleblower and the identity of the person who

is the subject of the disclosure are kept confidential All correspondence, phone calls and emails from • Liaise with the Chief Executive Officer of the public internal or external whistleblowers will be referred to body. the Protected Disclosure Coordinator.

Report of Disclosures to 31 October 2007 No Of Types of Disclosures Disclosures

• Disclosures made to MHARMB during 2006-07 nil -

• Disclosures referred by MHARMB to the Ombudsman for determination as to whether nil - they are public interest.

• Disclosed matters referred to MHARMB by the Ombudsman nil -

• Disclosed matters referred by MHARMB to the Ombudsman for investigation nil -

• Investigations of disclosed matters taken over by the Ombudsman from MHARMB nil -

• Requests made under Section 74 to the Ombudsman to investigate disclosed matters nil -

• Disclosed matters that MHARMB has declined to investigate nil -

• Disclosed matters that were substantiated upon investigation and the action taken on nil - completion of the investigation

• Recommendations made by the Ombudsman that relate to MHARMB nil - 22 Corporate Services Corporate Governance

FAIR TRADING ACT From the 1st June 2004 new regulations under the Fair Trading Act came into effect.

The Fair Trading (Recreational Services) Regulations 2004 make it possible for suppliers of recreational services to obtain consent from customers to waive their rights under the Act, including their right to take legal action against the supplier if they die or are injured while using the services.

In compliance with the Fair Trading (Recreational Services) Regulations 2004 Mt Hotham Alpine Resort Management has installed warning signs at both ticket STATUTORY REPORTING gates to alert visitors to the fact that they are being asked to agree to waive their rights under the Fair Trading Act. Corporate Plan

PRIVACY ACT Section 53 of the Alpine Resorts (Management) Act 1997 The Federal Government introduced the Privacy (Private requires the Board to prepare an annual Corporate Plan. Sector) Amendment Act 2000 which amends the Privacy The Corporate Plan must be approved by the Minister Act 1988. The main aim of this legislation, which came each year. into effect on 21st December 2001, is to give more control over the way private organisations collect, use, disclose The Corporate Plan must include: and store information. 1. A statement of corporate intent in accordance with

Mt Hotham Alpine Resort Management prides itself in Section 54 of the Act handling personal information with extreme care and 2. A Business Plan containing the information re- diligence. In order to comply with the Privacy (Private quired by the Minister Sector) Amendment Act, Mt Hotham Alpine Resort Management has adopted a MHARMB Privacy Policy that 3. Estimates of the receipts and expenditure of the is implemented at all times. Board for the period of the plan.

The Business Plan is also developed on an annual basis to specify the annual objectives of the Board and to measure the performance of the organisation against the objectives identified within the Corporate Plan.

The Board has identified and has structured its Corporate Plan on a set of core responsibilities. These are: • Utilities • Financial Management • Public Access, Safety and Education • Corporate Services • Environmental Management • Marketing • Business Undertakings

The Corporate Plan for 2006–2007 and the annual Business Plan were submitted to the Minister in February 2007.

Annual Report

Section 53A of the Financial Management Act 1994 requires the Board to prepare an annual report. The annual report must be approved by the Minister each year

The Annual Report must include: A) Reports of operations and financial statements of those departments or public bodies or both B) A report of operations and financial statements consolidating information provided by those departments or public bodies or both.

The Annual Report 2005/2006 was submitted to the Minister in February 2007.

23 Public Access, Safety and Education Risk & Emergency Management

Objective To ensure: a consistent and regular delivery of operational services such as transport, car parking and traffic control, snow clearing, cross country and skifield safety

So that: the resort can offer the highest quality alpine experience to our customers, stakeholders, investors and developers to continue growth in visitation and investment.

RISK MANAGEMENT ♦ An earth reinforced retaining wall and associated The Mt Hotham Alpine Resort Management Board is commit- water main relocation at the Arlberg ted to operational safety within the workplace and believes ♦ Relocation of the potable water pump station that sound risk management practices are key elements to ♦ Surface water drainage along the GAR, Davenport achieving this end. Track and Blue Ribbon Trail

The MHARMB has implemented a Risk Management Strat- ♦ Rework Slatey cutting batter egy which aims to bring a comprehensive and cohesive struc- ♦ Slalom Gully monitoring ture to the management of risk within the Resort and a Risk ♦ Geotech Management Management Committee has been formed to implement the Geotechnical / engineering consultants have reviewed high framework necessary to comply with the VMIA Act 1996. and very high hazard sites and assisted the RMB with engi- The Risk Management Committee have developed a risk neering design and certification of remedial works as well as register and risk treatment plans and have been instrumental providing post evaluation reports. in maintaining our VMIA rating. Through amendment C7 to the Planning Scheme the RMB is GEOTECHNICAL RISK MANAGEMENT PROGRAM now the referral authority for geotechnical and land stability

The State Government (DNRE) commissioned a Resort wide issues in relation to planning permits. Geotechnical Stability Review in 1998. Snowy Mountains EMERGENCY MANAGEMENT Engineering Cooperation (SMEC) undertook this review and The Mt Hotham Resort Emergency Management Plan, as the final report was published in April 2000. required under the Emergency Management Act 1986 con- The land stability risk analysis was based on a comprehen- tinues to develop thereby meeting the needs of the Mt sive assessment undertaken by SMEC who assessed all Hotham community. lease hold sites, ski field, public land, roads and infrastructure The Resort Emergency Management Committee (REMC) within the Alpine Resort. conducts formal meetings twice a year and assists with the The Report provided a risk assessment for each site which planning and coordination of emergency services for both was based on Australian Standard 4360.1995 “Risk Manage- response and recovery within the Resort. ment”. The risk assessment considered the following land The Committee comprises MHARMB staff, Victoria Police, features: Victorian State Emergency Service, Country Fire Authority, ♦ Natural Shallow landslides Department of Human Services, Resort stakeholders and ♦ Slope angle and shape other agencies as required. ♦ Site geology including material strength and thickness ♦ Concentration of surface and ground water In conjunction with the Alpine Shire (Dinner Plain EMP) and ♦ Evidence of instability the Committee of the Mt Hotham Airport EMP, the Mt Hotham Resort EMP Committee have signed a Memo of ♦ Rock Fall Orientation of defects system Understanding (MOU) for the sharing of resources for both ♦ Modification by fill and cut into slope response and recovery during an emergency. The likelihood of slope failure at any site is “the combination Training Exercises of the relative frequency of slope failure indicated by the as- The Board conducted a training exercise at the sewerage sessment of site features and the basic frequency of failure in farm in September 2007. The scenario involved two workers the resort area indicated by records of significant events”. In involved in an accident in the blower room with smoke and summary the “evaluation of the level of risk is based on a fire and was attended by the CFA to extradite the workers combination of the assessed level of likelihood and conse- and attended the fire. Ski Patrol was involved to administer quences”. first aid and Police attend the scene to offer crowd control. The Resort Management Board (RMB) worked closely with The exercise was a success and congratulations to everyone DNRE and site holders to develop a prioritized mitigation involved. strategy to manage sites with high and very high hazard rat- REMP Audit ing. The program of works commenced immediately and In 2005-2006 the Board appointed a consultant to review and funding has been provided through annual service agree- update the Emergency Management Plan. The plan was ments with DNRE and more recently DSE. sent for Audit in November 2006 and was successfully The mitigation works program has been managed by the adopted. RMB and annual reports provided to the Department. The A review of the plan will take place in 2009 while the Emer- total expenditure to date is $3,123,440. The major projects gency Management Plan will be updated annually. have included: 24 Public Access, Safety and Education Skier Safety

SKIER SAFETY ing the message of safety in the snow and on the slopes, and also The season started off with some very good early snow falls to provide information about the resort and services provided. which continued through June and July. The Summit and There were no major searches this year and only one avalanche Big D areas were the first to open on the opening weekend control morning. with 20cm of snow on the ground. Progressive falls saw the entire resort open by early July with some of the busiest The exchange program with Keystone in Colorado is providing periods for the patrol being mid July to early August. both patrols with an exchange of ideas and giving the patrollers an opportunity to gain experience outside their home resort. Significant snow falls did not occur from August to Septem- ber and saw areas shut down progressively due to low snow Patrol members attended the Ski Patrol Vertical Rescue workshop cover. The first being Blue Ribbon in mid August and then held at Falls Creek. This is a workshop organized by the Victorian Gotcha, Orchard/Keogh in early September. Heavenly Val- Police Search and Rescue unit to train patrollers in the activities ley lift continued until mid September. The Drift, Summit, and legislation pertaining to high angle and ice rescue. This is a Village loop and Big D areas continued until the end of the great benefit to patrols in that it fosters a camaraderie between groups and provides a consistency in training. season.

The season had approximately 1167 lifted days, over a sea- The New Zealand Avalanche Safety Management Course - Level son of 113 days. Night ski had 27 nights. Total snow accu- 1 conducted by Otago Polytechnic and held at Temple Basin was mulation for the season was 279cm with the maximum attended by members of the Hotham patrol again this year. The depth reached being 140cm on 6 August. course provides the opportunity for patrollers to gain knowledge of avalanche activities, prediction and safe rescue of avalanche Snowmaking had a significant impact on the season and situations. assisted with the opening of lifts on time for the opening weekend. The Australian Ski Patrol Association National Patrol on snow test was conducted at Mt Buller and three patrollers attended with two The resort had approximately 360,000 visitor days this year passing. which is an increase in previous years. Ski patrol call out and medical centre figures did not show any great rise, in The lift company instituted early lift opening of Heavenly Valley at fact the figures paralleled an average over previous good 7:30am on Wednesday to Sunday, for most of the season, and years. This could be attributed to the fact that the entire re- many riders took advantage this. The events run at Hotham this sort was open for a long period of time and riders were not year had the lift open even earlier on selected days with some congested in a particular area. 6:00am starts for many weeks. The Events calendar was once again full this year included Masters Racing, FIS Racing, Interser- It became apparent early in the season that an increased vices Races, Police Games, various events for the Interschools presence was required on the hill to educate riders and slow championships, a Billabong event and various evening events on people down. A mountain awareness program was instituted the Rail Park on the Basin. The annual cross country Pub to Pub and several people were employed casually to provide edu- was well attended this year and the patrol provided a presence. cation on the slopes to riders at various times of the day. The patrol had a presence at all the events from early starts to This appeared to reduce the incidence of unruly behavior; finish, the patrol day beginning at 5am for weather observations several people had lift privileges removed for varying through to 10pm with night ski. lengths of time. Ski Patrol staffing was 20 paid, 27 volunteers and a number of The ski patrol attended to 925 callouts this year of which trainees. Paid patrol shifts were 1156 and volunteer shifts 242. 521 were sent to the Medical Centre. The patrol continued Last year was a poor snow year and little on slope training was to provide the same services as previous years. The gather- conducted, this had a significant effect on all patrollers especially ing and dissemination of weather and slope information for the trainees, the trainee program was extended by another year the snow reporting team, patrollers commencing at 5am. and most completed the training this year. It is important to main- The information is sent to lodges, business houses and tain a high standard within the patrol and training of all patrollers many media outlets. Talks to school groups and other inter- provides that forum. ested parties is a valuable means of education and reinforc-

snow depth

250

2004 2000

200

2002 2003 2001 150 2000 2007 2003 2001 10 yr av 2004 100 2005 2005 2006 2002 10 yr av 2007

50 2006

0 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 0 0 0 0 0 0 0 0 0 0 00 00 00 00 0 00 0 00 00 0 2 20 /2 2 2 /2 /20 /20 /2 /2 6/2 6/2 7/ 8/2 8/2 9 9 0/2 /0 /0 /06/ /07 /07/ /07/ /0 /08 /0 /09 /09 /1 9/06/200 0 7/0 1 8 4 1/0 8/0 6 16 23 3 14 2 2 11 18/08/200 25 15/09/200 22 29 wk 25 Public Access, Safety and Education Resort and Customer Services

WORKSHOP The summer started for the Workshop with maintenance and Resort Services Comparative Costs breakdown repairs to plant and equipment being used for the Cost Centre 2007 2006 2005 2004 pipeline/sewerage treatment upgrade facility. All essential Potable Water equipment was kept running without major delays keeping $ / FECA 2.10 2.61 2.45 2.09 downtime to a minimum, important considering the fine dead- Sewerage line given to finish the projects before the commencement of the winter season. $ / FECA 2.44 3.25 3.58 3.11 Solid Waste Other summer works included routine servicing, repairs and $ / FECA 2.95 4.04 3.40 2.92 rebuilds to all fleet vehicles and stationary plant. Considering Ski Patrol the size of the workload and limited manpower available this $ / Visitor Days 1.15 1.15 1.11 1.31 was a major exercise. Staff were constantly called upon for Village Transport various breakdowns and servicing of vehicles being used. $ / Visitor Days 0.78 0.99 0.77 0.84 The Nov/Dec 2006 fires caused a major disruption to the nor- Snow Clearing mal servicing and repair schedule. Pumps and mounting $ / Visitor Days 0.47 0.43 0.38 0.40 frames for firefighting tanks had to be manufactured and modified to fit different vehicles as well as ensuring existing firefighting equipment was ready for immediate use. This ef- TRAFFIC AND TRANSPORT MANAGEMENT fort ensured Resort Management has the equipment capacity Transit Operations consists of the Village Transport System for any future threat by bushfires, with the added bonus of and daily parking functions. The transport system is operated having plant that can be used for track maintenance and wa- between 6.30AM and 3.00AM, seven days a week during the ter cartage when required. winter season by 22 staff. Transit staff provide parking control within the village as well as liaise and support stakeholders Buses took the majority of the workload, requiring detailed and business operators with other functions of resort opera- repairs and overhauling. Nigel Sutton, initially employed as a tions. bus driver for winter 2007, assisted the Workshop in this and other tasks, ensuring they passed their annual Accredited Resort Management has a fleet of seven 70 passenger Mer- safety inspection with minimal faults detected. cedes urban transit buses providing customer transport within the village. Due to the layout of the resort and the extreme Unfortunately, Bruce Jobbins the workshop manager handed weather conditions village transport operates 20.5 hrs per day, in his notice. Bruce was an asset to the RMB, bringing with longer than any other ski resort in Australia. Management him invaluable experience from many years spent in the snow endeavor to service each stop within the village every 10 min- industry in Australia and overseas and brought forward many utes. new procedures and innovations to the organisation. He has gone to Albury to be closer to his family and to start a new A seventh bus was purchased in 2007 to provide assistance challenge as Workshop Manager for a prominent trucking and back up to the balance of the fleet during peak times in company in a new facility. The Board wish him luck in his the morning and afternoon, reflecting an increase in customer future achievements and appreciate the time he has spent in visitation. With seven buses turning, a full bus leaves Stop 1 every 7-8 minutes during peak periods. our organisation.

Shane Scott, who has been working as senior mechanic with Staff come from a wide background and are employed on the the RMB since 2000 took on the role of Workshop manager basis of their work and life experience. A customer service with the vacant position of Mechanic taking five weeks to fill background and good inter-personal skills is highly regarded. by Andrew Keily. Andrew hails from Corowa and has a previ- In 2007 seven new seasonal staff complimented the fifteen ous employment background working with assorted plant and staff returning from previous seasons. All staff are required the equipment. His competence, easy going nature and enthusi- have a Medium Rigid licence and Taxi Directorate Drivers asm for working in such a uniquely located workshop has Accreditation. New drivers must successfully complete a com- made him an invaluable addition to the organization. pulsory 4 day Hazardous Area Driving Authority conducted in June by National Industrial Skills Training (Wodonga Special note should be given to the people that helped Shane T.A.F.E.). All participants completed the course achieving a during the transition time and into the season, namely Nigel high standard. Several long term seasonal employees also Sutton and Noel Patton. Their efforts were greatly appreci- completed their 6 year refresher course as required by Vic ated in keeping things afloat. Roads regulations. A Parking Regulation Enforcement Officer

Downtime was kept to a minimum through the season by the was employed to monitor and enforce the parking regulations. addition of a new Mercedes bus, used on a regular basis to Overall compliance with parking and resort entry regulations replace buses that were being serviced or requiring repairs. continues to improve assisting the safe and efficient function- The bus had been bought for emergency spares, but was in ing of resort. good enough condition to warrant refurbishing to be used No major accidents or major breakdowns occurred this season within the resort. reflecting the skill levels of drivers and the high level of main-

New vehicles purchased for the season included a 4 Stroke tenance provided by the workshop mechanics. The Board snowmobile for Ski Patrol, which replaced a long term ma- would like to express their appreciation for the work performed chine, and a Landcruiser Troop Carrier to add to our light by drivers, car park attendants and supervisors/managers this season. fleet.

26 Public Access, Safety and Education Resort and Customer Services

CROSS COUNTRY SKIING GATE ENTRY Early snow and cold temperatures held great promise for It was pleasing to see the snowfalls this season at Mt. season 2007 although accumulations were not sufficient Hotham were far better than season 2006 and this for extensive grooming until the third week of June. By the was reflected by the many positive attitudes and com- start of the July School Holidays much work had been ments of our visitors, upon their arrival at our gate done to clear low and broken limbs from the trails and to entry points this season. The 2007 MHRMB gate solve recurring drainage issues. Skiing conditions were entry crew who most capably staffed both the Buck- excellent, largely due to the high snow quality and timely land Gap & Mother Johnson’s ticket boxes warmly snowmobile packing of the early snow. welcomed the many families, individuals, school groups and private charter groups who chose to enjoy The intensity of works on the Sewage Treatment Plant and the vast array of facilities that the Mt. Hotham resort Water Recycling pipeline over summer meant that little provided during season 2007. was achieved on the trails pre snow until assistant groomer Noel Paten returned in May. A concerted effort The large majority of visitors experienced a very mini- was required to get the trails into shape and through the mal wait when entering the alpine resort this season, season many trees were brought down by wind or the thanks to our computerised ticketing system which weight of snow and ice adding to the workload. The issue again provided a very high level of efficiency, com- of post 2003 fire damaged trees continues to present prob- bined with the valued experience of the gate staff who lems and will do so until it is adequately dealt with. attend the Mt. Hotham resort entry points around the clock. Events on the trails were run comparatively easily due to the good early snow falls and timely efforts to compact and The visitor services provided at the gate cannot be maintain a base. The main exception was the Winter Tri- achieved without the help of many others. The ongo- athlon which was transferred from Dinner Plain to the Wire ing support received from MHRMB management, Plain trails in September. The trail for the ski leg was con- resort operations, IT & administration staff, village structed largely by shovelling and/or carrying a lot of snow traffic & transport staff, together with Stadelmann with a snowmobile trailer and the event was conducted on Enterprises staff, who provided this season’s road white strips of snow flanked by the green of spring. snow clearing services, was warmly appreciated by all gate entry staff. Poor snowfalls in the latter half of the season saw snow levels dropping in August and disappearing from the worst The Board would like to express their thanks to the of the problem areas very quickly, once again highlighting following staff members for their valuable contribu- areas in need of improvement. tions during season 2007: Ian McIntyre, Glenn Bill- man, Eileen Ferguson, Bill Hayes, Josie Hendrix, Ron On the positive side temporary snow fence at the RMB Jamieson, Kevin Mock, Evelyn Rupp, Robert Studd workshop trapped a metre of snow overnight on one occa- and Joy Young. sion and assisted in maintaining snow cover in our oversnow operations area for longer than otherwise might VISITATION have been possible. Construction of further snow fencing Visitors during the 2007 winter ski season totaled in appropriate areas would further improve the usability of 135,582 an increase of 33% to 2006. Winter visitor the trails in future. days totaled 361,783 an increase of 21% to 2006.

Grooming operations for season 2007 were close to aver- Number of winter visitors 1998-2007 age with the Kässbohrer PB100 clocking up 550hrs and the snowmobiles being used extensively both early and late in the season. Speedo cable failures on two machines 2007 2006 meant that accurate use data is unavailable for the snow- 2005 mobiles. 2004 2003 SNOW CLEARING 2002 2001 To ensure safe access to village roads and carparks at all 2000 times, Mt Hotham Resort Management ensures that im- 1999 mediately after snow falls, extensive clearing operations 1998 70000 80000 90000 10000 110 0 0 0 12 0 0 0 13000 14000 150000 16000 170000 begin. 0 0 0 0 0

The VicRoads appointed contractors, “Stadelman”, were Number of Visitor Days 1998 - 2007 responsible for maintenance and snow clearing of the Great Alpine Road carriageway from Harrietville to Omeo.

Stadelman had no difficulties maintaining access to the 2007 Resort this season. During the 2007 winter season, our 2006 snow clearers devoted 1,537 hours to clearing operations. 2005 2004 CUSTOMER FEEDBACK 2003 2002 Mt Hotham Alpine Resort Management’s main aim is to 2001 2000 continually improve the services we provide to visitors so 19 9 9 that we can maintain a high quality customer service 19 9 8 quality. To achieve this objective we ensure that all ques- tions and complaints are attended to promptly. 27 Marketing General Marketing

Objective To ensure: That marketing, business development, communications, public relations and information services are provided to visitors and stakeholders including identifying new tourism and event activities

So that: the resort maintains a vibrant economy, encouraging development as an all season resort and provides a range of accurate information through effective communication using all mediums.

REGIONAL MARKETING

The Board continues to participate in regional marketing campaigns through local and regional tourism bodies. Jes- sica Rose represents the Board on the Great Alpine Road Committee and is a long standing member of the regional tourism group Alpine Region Tourism (ART), an organisation that aims to promote the alpine region as an all year round holiday destination.

BART

Mt Hotham Resort Management is continued to be repre- sented by Jim Atteridge and Helen Moran on the Board of Alpine Region Tourism (BART), a partnership with Tourism Victoria and other representatives from participating Victo- rian Alpine Resorts.

Board member Helen Moran’s role on BART also has her involved with the North East Victorian Tourism as the BART representative and Chairperson.

Jessica Rose represents the Board on the BART marketing committee. The objectives of the BART marketing program for 2007 were to increase brand awareness amongst new skiers in Victoria and South Australia, to target regular skiers with a competitive price offer in Queensland and West- ern Australia, to enter into the international market and to implement new marketing campaigns through advanced technology to appeal to the NEO market.

EVENTS

Mountain Fresh Festival

As the snow fell on Victoria’s High Country, visitors experienced a six-day winter festival of delicious regional food and exciting cool climate wines from the spectacular Alpine Valleys.

The festival, this year in its second year, was developed and implemented by the Mountain Fresh Committee, a partnership of Alpine Valley Vignerons and Mount Hotham Resort Management.

A diverse program of individual events were held at venues at Mount Hotham Alpine Resort and Dinner Plain Al- pine Resort.

28 Marketing General Marketing

Highlights of the festival included the Gala Opening BBQ with Other Upcoming Events cruisey blues at the Snowbird Inn on Thursday 12 July, featur- The Resort Management Board is working with Dinner ing gourmet bbq delights and music with Lee Rosser. Regional Plain and the local community to create more festivals chefs Joy Young, Patrick Heanue and Michael Ryan each con- and events at Mt Hotham. A particular focus is on the ducted a masterclass at various venues during the festival, all summer season, with events such as road biking events, free of charge. The main feature of the program was the Taste food and wine festivals, mountain biking events, music Alpine Tour on Saturday 14 July where the flavours of the Al- and special interest weekends such as four wheel driving pine Valleys congregated at Hotham Central from 3-6pm. Visi- and vintage car rallies. Summer 2007 saw some of these tors were able to sample their way around the region and meet events start to take shape and they will be even bigger some of the passionate winemakers and food producers. and better in coming years. Other events included Alpine Pizza with Alpine Merlot at Dinner Plain Hotel, a winemakers dinner at Zirkys, Strike Gold at AJs, wine tasting at Brandy Creek, foodie film nights at the DP On- sen and Spa and a European Feast at Crystal Creek.

SPONSORSHIP The Board would like to thank the following companies for their continual support:

Ford, K2, Bolle, Skins, Rud Chains, ANZ and Edge FM.

Pizza Making at the General

29 Marketing Communications

VISITOR COMMUNICATION STAKEHOLDER COMMUNICATION

A number of established communication channels with Website—an important communication tool, our website our stakeholders were successfully utilised in 2006- has continued to improve over the year to help better 2007. inform our visitors. The new format this year made the website not only easier to navigate, but more compre- Executive Briefings—now held annually in February, hensive and visually pleasing. executive briefings for head lessees have proven to Out and About—a daily report on the daily events be a successful stakeholder communication tool. Lodge Manager’s Meetings—held at the beginning of Information Pack—the info pack provides all visitors with the season to provide lodge managers with impor- up to date information for the winter season. tant information. Stakeholder Meetings—held regularly over the year. Ski Patrol Talks—provided throughout the winter season. These are conducted by both the Resort Manage- ment Board and the Mt Hotham Skiing Company for Environmental Talks—provided throughout the year to different reasons over the year. schools and organised groups. Website—an important communication tool, our web- PUBLICATIONS PRODUCED site provides regular stakeholder updates. Hotham Times—a weekly newsletter providing up to ♦ Annual Report date information on news and events during the ♦ Corporate Plan white season. This newsletter is provided monthly ♦ Mt Hotham Village Guide in the green season and provides departmental updates, stakeholder and visitor notices and much ♦ Mt Hotham Cross Country Guide more.

COMMUNICATIONS MODEL

GOVERNMENT Ministers, Ministerial Staff, Senior Department Executives

RESORT MANAGEMENT BOARD

External Industry Key Influences Investors Customers Lobby Resort Business D.S.E. Lessees Overnight Groups Management Travel Agents E.P.A. Developers Day V.S.A. Staff Suppliers C.M.A.’s Builders Dinner Plain V.N.P.A. Retailers Parks Vic Estate agents Chamber Vic Roads Fin. Institute Comm. Lic. operators H.S.A.

Information Consistent Information sessions and customer sessions and meetings as satisfaction meetings as requested and survey. requested and required on an on an issue by issue by issue To Board via issue basis basis. RMB staff report. To Board via To Board via RMB staff RMB staff report. report. ‘Current Tools’ used as appropriate.

30 Marketing Communication

WEBSITE The Board’s online presence, www.mthotham.com.au, has INFORMATION TECHNOLOGY again shown consistent growth in visitation, as has been the The IT Manager is responsible for a number of key areas: case over the last 7 years. Proving the value of a well de- signed, constructed and maintained website. With over 2 mil- ♦ The Boards website www.mthotham.com.au lion visitors (2,030,240 + add 10% for caching) during the re- ♦ Gate entry ticketing system porting period, this represents an increase in traffic of almost ♦ Administration networks 30% over the previous year, demonstrating that the fresh design of the website was appreciated by our online visitors. This ♦ Programming and maintenance of control/ also reinforces the status of www.mthotham.com.au as the monitoring equipment and software for utility ser- number one point of contact for online information about the Mt vices (gas, potable water, wastewater) Hotham Alpine Resort. ♦ IT hardware/software acquisitions

Statistics for www.mthotham.com.au : ♦ Telecommunication services ♦ Data security ♦ 2,030, 240 visitors (add 10% for caching) ♦ IT Helpdesk support for all RMB staff ♦ Highest single day winter visitation – 21,555 Tuesday th ♦ Electricity supply contracts June 27 2007 – (record single day visitation) ♦ 53 days with visitation over 10 000 (39% Increase) Further development of ProVenueMax, the gate entry ticket- ♦ Highest visitation for a single week – 106, 230 1st July – ing, and the Financial Management Software package, 7th July 2007 - (record single week visitation) CivicView have continued throughout the year. The installa- ♦ 12 weeks with visitation over 50 000 tion of the Scada and control systems for the Ultra-filtration ♦ over 430 000 snow reports emailed during the 2007 ski Plant (part of the Water Trust Project) and the upgrade of season the Sewerage Treatment Plant created many exciting challenges for the IT department. Although through the contin- ♦ over 63 000 newsletters emailed during the 2007 ski ued dedication and commitment of the IT staff, all existing season and new systems continued to operate at a high level of ♦ more than 21 000 Calendar Alerts emailed over the reliability, with very few problems experienced, causing little reporting period. or no interruption to the Board’s service delivery.

Visitation to www.mthotham.com.au

400000 350000 2001/2 300000 2002/3 250000 2003/4 200000 2004/5 150000 2005/6 100000 2006/7 50000 0 July May April June March August October January February November December September

Again, most of the figures quoted above have increased dra- matically from the previous year, for example total visits up by almost 30%, days with visitation over 10 000 up by 39%, single day and week visitation records set, more snow reports, more newsletters, more calendar alerts, the list goes on and on.

In the 8th year of a very successful partnership with our web designers, GoCreative, and a fresh look website for season 2007, continued additions/enhancements/features, visitors to www.mthotham.com.au have continued to enjoy an improved interface, enhancing their online experience and providing them with greater, timely and more accurate information before arriving at the resort.

The website also provides an exceptionally useful tool for communication with Mt Hotham resort businesses, stakeholders and staff. Areas such as Stakeholder info, Property, News and Publications provide great mechanism for general information dissemination. 31 Land Management & Environmental Services Contract Administration

BUILDING SERVICES ENVIRONMENTAL HEALTH SERVICES

The Mount Hotham Resort Management Board (RMB) This is now the 9th year that Indigo Shire Council has provided En- has a responsibility under s. 212 of the Building Act vironmental Health Services to Mount Hotham.

1994 to administer the provisions of the Act, the Build- Food Premises ing Regulations 2006 and the Building Code of Austra- Over the 2007 season we registered 21 food premises operating at lia 2006 within its jurisdictional boundaries. The Resort Mt Hotham. Each of these premises was inspected on at least two fully coplied with the provisions of the Building Act this occasions. These premises were inspected to ensure they complied financial year. with the Food Act, 1984 and the Tobacco Act, 1987. Food premises

Historically, the Resort Management Board has en- inspections focused on aspects such as construction and cleanli- gaged the services of the Alpine Shire Council Munici- ness of the buildings including ensuring that ceilings, walls, work pal Building Surveyor (MBS) to fulfill its obligations areas, hand-wash basins, cooking equipment, cool room equip- under the legislation. This arrangement has continued ment, garbage area’s, toilets and all other fixtures were all of a hygi- over the past 12 months with respect to the inspection enic and sound standard. Hygiene and food handling procedures of buildings for compliance with relevant building and were also monitored and advice provided on food safety plans and fire safety regulations. temperature control, etc.

As was the case in previous years, a letter to all lease Tobacco Act Compliance holders was sent prior to the commencement of the Tobacco compliance for food premises involves having the correct 2007 ski season requesting that contact be made with signage displayed, correct facings of cigarette packaging, and no the MBS to arrange a suitable time for a fire safety unauthorised advertising or illegal sales to minors. This year with audit to be undertaken. A number of inspections were changes to legislation there were issues relating to new smoking undertaken as a result of this process although clearly, restrictions in enclosed places. There were a number of new staff the response rate is disappointing given the importance members whom were unaware of Victorian State legislative require- of this matter. Pleasingly, the Mount Hotham Ski Com- ments. Information and advice was provided to these staff and the pany (MHSC) took the opportunity to have all of the general public in order to encourage compliance. buildings under their direct responsibility inspected and Accommodation the rectification of the issues identified for the most All accommodation facilities that have paying guests or cater for part, occurred immediately. members of the public who are not members of the group or club

It is noted that there were no recorded incidents of an that operates the building are required to register with Council under in-building fire threat to life or property. the provisions of the Health (Prescribed Accommodation) Regula-

tions 1990. For the 2007 season there were a total of 50 accommo- The regulatory requirements in relation to exit signage, dation facilities registered and inspected. Accommodation facilities exit door furniture and the installation of a compliant were inspected for their maintenance of construction conditions smoke detection and alarm system, continually surface such as ceilings, walls and floors to ensure they are of satisfactory during audits and arguably there may be some benefit condition. Toilets and shower facilities were also inspected to en- in holding an information session for lease holders spe- sure that there were enough facilities to accommodate the patrons. cifically on these issues. In addition laundry, bed linen and bins were also inspected.

In this regard, the MBS, at the invitation of the Hotham Rooms are also measured to ensure that they are of legal size and Ski Association, attended their Annual General Meeting over crowding does not occur. The regulations require such rooms in December 2006 and gave a presentation on the is- to be of specific size for the number of patrons they accommodate. sue of the retro fitting of fire sprinkler systems as out- Throughout the season the majority of accommodation facilities lined in the Building Regulations 2006. As a conse- inspected were found to be satisfactory although three lodges were quence of this event, many lodge managers have sub- below the required standards and action will be taken to raise the sequently arranged for an inspection of their building standard in these accommodation facilities. and a more formal report on the issue. Hair Dressers, Beauty Parlours, and similar establishments The approach of the 2007 ski season saw some signifi- The Health (Infectious Disease) Regulations, 2001 control potential cant new building development occur at Mount infectious diseases that may occur in the above premises. These Hotham. A new apartment complex was constructed at regulations set out the requirements that proprietors of premises the Pearce Site and a large dwelling at the Ultima Site registered under the Health Act, 1958 must observe. All premises in Higgi Drive. The DSE constructed a new fire lookout are required to be maintained in a clean hygienic manner. For the tower at the Summit and a number of minor apartment 2007 season there was only 1 premises registered under the Health alterations and refurbishments were also completed (Infectious Disease) Regulations, 2001. This premises was visited over the summer. The Resort Management Board also through out the season and complied with the regulations. constructed a sewerage treatment plant off Davenport Drive. Infectious Disease Upon request by the Manager an inspection of the Big D Child Care facility was carried out at the start of the season to review the measures she had introduced to prevent outbreaks of infectious disease. A thorough inspection was undertaken and advice provided to the Manager on measures to employ to reduce the possibility of infec-

tious disease outbreaks at the facility. No infectious disease outbreaks were encountered this season at the childcare centre and the Manager and staff should be congratulated on their efforts. Also no other reports of incidents of infectious disease at Mt Hotham were received. 32

Land Management & Environmental Services Business Development

PROPERTY MANAGEMENT

With the increase of visitations to Mt Hotham over the past 12 months, many ski lodges are undertaking to refurbish and up grade their facilities to take advantage of the increased patronage. This is reflected in lessees taking a great interest in new leased terms and the future of the Resort. To assist the refurbishment the RMB has introduced a preferred colour palette. During the past 12 months property management has been active in support- ing the lessees in the transition to the new Alpine Standard Lease.

LEASING

There are still a small number of Lessees on overholding and there has been a concerted effort by the property management to renew these Clubs Leases. The team has also undertaken to be available to provide awareness session to Clubs on the New Leasing Policy and its implemen- The New Higgi Drive Apartments tation.

SUB LEASING ACTIVITY

With 56 transfers of sub lease within the Resort it demon- strates the continued interest in property ownership at Mt Hotham.

Land Manager Paul Flint consulting with DSE on the Three Huts Walk

PLANNING

With the approval of Planning Scheme Amendment C17 to the Alpine Resorts Planning Scheme there has been strong activity to implement the Certification of the Com- prehensive Development Plan for the New Hotham Vil- lage. The proposed Great Alpine Road realignment was certified to be compliant with the Comprehensive Devel- opment Plan this year. In support of the New Hotham Village Development the Free Hold Site was granted planning approved for a 20 Lot subdivision.

Planning approval for amended plans were also granted for Pearce 2001, Ultima Numbers 2, 4, and 5. An application for a Planning Permit for the Three Huts Walk was lodged this year. As this new track will involve the removal and rehabilitation of Native Vegetation with very high conservation values, the Resort is working very closely with the Department of Sustainability and Environ- The New Ultima 2 with a covering of snow ment to achieve a high quality outcome to enhance the walk and the visitor experience.

33 Land Management & Environmental Services Capital Works

MAJOR CAPITAL WORKS 2006-2007

For this reporting period the major focus of the Boards capital works program was stage two of the Wastewater Reuse and Water Conservation Project. However the Board also completed several small capital projects, upgraded IT equipment and invested in several items of mobile plant.

Silver Brumby Hut

Works at the Big D

Rubbish and recycling hutches As part of an ongoing program new rubbish and recycling hutches were constructed and installed in various locations around the resort.

Fire fighting equipment December 2006 saw a series of bush fires burning in the vicinity of the Resort. To ensure adequate protection the Prefab of the new Silver Brumby Hut in Sale Board invested $20,000 in fire fighting equipment including pumps, hoses and slip on units to fit a range of vehi- The original hut was constructed as a temporary film prop cles. The slip on units included 6000 litre, 4000 litre and in March 1992, for the feature film “The Silver Brumby” 400 litre capacity tanks. based on the book of the same name written by Elyne Defibrillators Mitchell. The old hut was dilapidated to the point of col- The ski patrol upgraded 2 old defibrillator units with up to lapse. The project was inspired by Rotary group from Sale date models to ensure a better service and reliability for with the Board providing some materials and assisting with potential patients. logistics. The total cost of capital works other than the Water Recy- The new hut was prefabricated at Sale and transported to cling Project was $254,000. Mt Hotham. The group cleared the site of debris and the prefabricated components were air lifted to the site minimis- ing environmental impacts. The new hut consists of a steel Looking SE from the Hotham Village in Jan 2007 frame and is clad using materials recycled from the old hut. The new hut retains the rustic nature of the original hut. Acknowledgment must go to the Sale Rotary Club who donated many hours to this project which included design, site preparation, transportation and site construction works. This was a community project supported by the Board.

Urban design at the Big D The bulk of this project was constructed during the previous reporting period. The Board undertook stormwater drainage works valued at $21,000. These works were necessary to facilitate appropriate stormwater management at the site. The area was sheeted with 20 mm aggregate.

Office renovations Renovations valued at $27,000 were completed on the Technical Services side of the Resort Management Office located in the village, for the new Land Manager and his assistant.

34 Land Management & Environmental Services Environmental Services

Objective To ensure: services including land use planning, resort development compliance, property management, environmental management, public health food and safety, the nursery and capital works are delivered providing effective land care

So that: activities, development and maintenance protects, conserves and enhances the natural ecological systems and visual amenity of the surrounding areas.

VICTORIAN WATER TRUST PROJECT

♦ To achieve EPA and DHS accreditation for Introduction the reuse of Class A water at the Resort. The Mt Hotham Wastewater Reuse & Water Conservation ♦ Eliminate cross catchment transfer of water Project (the Project) was developed to mitigate issues asso- diverted from Swindlers Creek, best practice ciated with the discharge of secondary treated effluent into returns treated water to its original source. the Dargo River catchment including meeting statutory compliance standards and to provide agreed service levels to Note1 - The multi barrier approach adopted for this stakeholders and customers. project will provide a minimum log 7 reduction for virus and Protoxa removal. The components involved The Project partners are Victorian Water Trust (VWT), Mt in the process are: Hotham Skiing Company (MHSC) and Mt Hotham Resort Management Board (RMB). A key factor in the successful Virus Pro- delivery of this project was the cooperative nature of the toza relationship between MHSC and the RMB, both parties en- Biological treatment Log 2 Log tered into this project with commitment and enthusiasm to 0 focus on the common goals which were detailed in the pro- Ultra filtration Log 3 Log ject documentation. 3 This iconic project provides infrastructure that will meet the Ultra Violet disinfection Nil Log future demands of the resort and also provides excellent 3 environmental outcomes. The Board would like to thank the Sodium Hypochlorite Log 2 Log Victorian Water Trust for their support with this project and 0

also thank the Mt Hotham Skiing Company for their coop- Redundancy built into the treatment train ensures a erative approach to delivering key components of the pro- robust system, meeting environmental and health ject. standards.

The project consists of five key work packages that form a totally integrated water treatment and recycling system for the Mt Hotham Resort. The individual components have a high degree of interdependency to achieve the broad project objectives. The key work packages are:

♦ Completion of augmentation works to improve operation and reliability of the existing activated sludge treatment plant, so as to produce high quality feed water for ultra filtration process. ♦ Construction of all the necessary infrastructure to polish secondary treated effluent and consistently produce Class A water suitable for recycling within the Resort. ♦ Construction of a 27 Mega Litre storage reservoir situated on the site of the Mt Loch Car Park. Project Objectives ♦ Construction of a 3.9 Km water transfer pipe- ♦ To provide a multi barrier treatment train that will line, connecting the treatment facility to the meet EPA and DHS standards for Class A Water. storage reservoir located at Mt Loch Car ♦ The process is managed through a Hazard Analysis Park; and construction of a reticulation pipe- and Critical Control Point (HACCP) management line to reticulate Class A water throughout the plan. Hotham Village for toilet flushing. This will ♦ To remove discharge of secondary effluent from allow Class A water to be connected to new Dargo River catchment and reduce impacts on local developments and progressively connected to aquatic environment. 35 Land Management & Environmental Services Environmental Management

Construction at the sewerage treatment plant constructed. Preliminary civil works were completed at the sewerage treatment plant site including construction of two concrete tanks, stormwater systems and fill compac- tion of existing site in preparation for site works.

Stage 2 Construction works commenced in late October 2006, due to bush fires in December, work was postponed until January. The key focus was construction of the pipeline, two teams constructed 3,000 metres of pipelines including 150mm DICL pressure rising main and 150mm DICL reticulation main. The augmentation of the existing activated sludge treatment plant included construction of a 450 cubic metre bioreactor tank; construction of a 450 square metre shed to house the ultra filtration plant and associated chemical storage. The complex also included a new electrical sub station and control room.

lodges that are undergoing major refurbishment. The ultra filtration plant was based on a design and a con-

♦ Construction of a pump station at the reservoir and struction contract awarded to Tenix Alliance; site estab- a pipeline to cross connect Class A water to the lishment occurred in Early March 2007 and the physical existing snowmaking system. This is a key ele- construction of the plant was completed in April. The elec- ment of the project as it allows Class A water to be trical / mechanical commissioning was a complex process and was completed in May. substituted for river water which reduces bulk diversion requirements and also meets a key EPA The commissioning, testing and verification of the Ultra objective which is to remove point discharge to Filtration (UF) plant was conducted through July and Au- waterways and develop water recycling options gust. This involved operating the UF plant in a continuous that allow disposal of Class A water to land rather mode to confirm that all equipment was operating within than directly into waterways. specified parameters and making fine adjustments to control systems, chemical dosing rates and establishing back

Project Partners & Financials flushing parameters. Training of RMB staff was conducted Funding for the project is based on a public / private partner- in conjunction with this process. ship. The Project partners contributed: This commissioning process was suspended in Mid Au- ♦ Victorian Water Trust (VWT) $4.18m gust when it became evident that feed water quality was ♦ Mt Hotham Skiing Company (MHSC) $2.09m not within specification for the membranes i.e. suspended ♦ Mt Hotham Resort Management Board (RMB) solids levels were often greater than 20 mg/l. However we $2.09m did achieve all the key commissioning goals in so far as

The current projection is that the final project cost will be 3 - physical operation of the plant and construction comple- 4 % over the budgeted cost. tion was granted on 6th October 2007.

The Business Case includes financial modelling to deter- In hindsight we believe that the key reason for the ele- mine the financial impact on the Board’s business and the vated suspended solids in the feed water was due to in- overall financial viability of the project. This process was adequate detention time within the activated sludge plant, conducted in conjunction with Treasury Corporation Victoria which lead to poor settling within the clarifier. This prob- (TCV). The results of this analysis show that the Project is affordable throughout its intended 20-year lifecycle. Project affordability will be met from the Board’s operating sur- pluses, which in turn will be underwritten by a 3.5% levy on service charges, increases in resort patronage and recurrent cost minimisation. A secured fixed term loan for the full RMB contribution was secured from TCV with a period interest period rate of 6.06%.

Project Delivery The project was announced by the Minister for Environment on the 10th July 2005 with work commencing in October 2005. Final verification of the plant operation will be undertaken during the 2008 ski season.

Stage 1 During the construction season 2005 / 2006 the storage reservoir was constructed, snow making cross connect was completed and the water transfer pipeline construction was commenced, with the first 1500 metres of pipeline being Laying the pipelines in the Davenport Village

36 Land Management & Environmental Services Environmental Management

lem will be rectified when the new bioreactor is commis- The ultra filtration plant is based on equipment manufac- sioned for the 2008 ski season. tured by Koch Membranes. The Mt Hotham plant has two trains each comprising of 8 membrane cartridges and Other compounding issues may have been due to storm- associated pump and control systems. The Koch mem- water infiltration into the sewer system causing hydraulic brane’s are configured to operate in a non recirculation overload and cooling of mixed liquor which may have mode with 5 – 10 % bleed to remove gross retentate reduced biological activity during these events. The RMB which is then pumped to head of works and reprocessed. has a recurrent scheduled maintenance program for rein- The daily design capacity of the ultra filtration plant is ap- statement of sewers to reduce stormwater infiltration. proximately 1,500,000 litres which allows for future resort Stage 3 expansion. The final construction program involves works to com- Ultra filtration was chosen as it provides the best compro- plete the pipeline and outstanding augmentation works at mise between providing an effective barrier to remove the sewerage treatment plant. These works include in- pathogens and viruses and producing a retentate stream stallation of aeration diffusers and upgrade of blower that can be managed on site. The pore size of the hollow controls, upgrade of the mixed liquor pipe lines modifica- fibre membranes is nominally 0.01 micron. tions to flow path through out the activated sludge plant. Installation and commissioning of the clear water lift Inside-Out Filtration pumps and control systems that transfer Class A water to The flow of feed water is the storage reservoir. from the inside of the fibre through the fibre The final commissioning and verification of the ultra filtra- wall to the outside of the tion plant will be completed once the activated sludge fibre. Since debris is plant is producing sufficient quantity of secondary effluent deposited on the inside (feed water), we anticipate that this could be as early as surface and not trapped Easter but more likely during the early weeks of winter within the membrane, it when load is more consistent i.e. daily volumes allow can be readily lifted off continuous operation of the ultra filtration plant. the membrane and Synopsis of Ultra Filtration washed out the ends of the fibre when the membranes are backflushed. Koch Membrane Sys- tems manufactures hollow fibre membranes used for ultrafiltration from polysul- fone, a material that has been used in potable water treatment systems around the world for more than a decade. These durable fibres are resistant to chemical oxidation and can tolerate a broad pH range, providing a wealth of alternatives when it is time for membrane cleaning. Be- cause the inside to outside flow path is clearly defined, chemicals can be circulated at high velocity over and around the build-up of debris to quickly and effectively clean the fibres.

Production • Feed water enters one end of the cartridge and flows, under pressure, through the length of the fibre, exiting the opposite end as retentate. • 95% of the feed water becomes clean water as it passes through the wall of the fibre and enters the center collection tube as filtered water or permeate. • The retentate amounts to about 5% of the feed water and carries away suspended solids. • Permeate simultaneously exits both the top and bottom of the cartridge through the permeate collection tube.

Backflush • Roughly once an hour the system goes off-line for a few minutes to backflush the fibres. • Flow is reversed and stored permeate, entering from the outside, is pumped through the fibres. • As permeate passes through the walls of the fibres it lifts debris off the inner surfaces and flushes it out the top and bottom of the fibres.

37 Land Management & Environmental Services Environmental Management

ENVIRONMENTAL PLANNING

Environmental Management Plan Adopted in 1998, the Environmental Management Plan (EMP) forms the backbone of the Board’s environmental management system. The EMP has proved to be the appropriate foundation from which to manage the resort’s natural assets whilst facilitating sustainable development.

Approaching its eighth year of implementation, work has begun in reviewing the plan to meet the increased emphasis on sound environmental practice in the Alps.

BUSHFIRES The first week of December saw the resort once again come under the threat of bushfires from the surrounding National Park, interrupting the normal day to day operations of the resort. Work on upgrading the sewerage treatment plant was halted due to staff’s commitments to their personal assets. The Board purchased nearly $20,000 worth of new Revegetation work on Mother J’s slope firefighting equipment such as hoses, tanks and pumps and implemented parts of the Fire Management Plan. Remaining REVEGETATION AND WEED CONTROL staff worked readying equipment and creating fire breaks around assets in the resort. The summer of 06/07 began with revegetation works to the 950m2 area of the Mother J’s slope to the Loch Dam where Communications expert and ex-Board Member Drew Lean the Class A water pipe was laid. This was a combined pro- assisted the Marketing Department to establish a communi- ject funded and staffed by Resort Management and Mount cations centre sending out daily e-mail and website alerts to Hotham Skiing Company. stakeholders and the local community. Information was received from the fire control centres in Gippsland and the Cross drains on the slope were extended and improved, North East. Local police, CFA and DSE also used the RMB native grass sods were repositioned and dug in and holes as a communications tool, distributing up to date information filled. Seed free straw was spread and covered with biode- to all on-mountain staff, residents and volunteers. gradable jute netting. 2,600 locally sourced native shrubs were planted, wetting agents applied and an irrigation sys- The new Loch Dam provided water to DSE helicopters to st tem fed by Loch Dam established as the summer promised fight the local fires and December 31 saw heavy water to be exceedingly dry. Weeds were monitored and treated bombing activity using the resorts water resources. Due to and futher planting and weed monitoring will occur in 2008. the efforts of DSE and CFA personnal the fire was contained within the National Park and did not cross the resort bound- Revegetation staff also contributed in December towards the village fire plan as fires threatened. ary. By early January, the threat had subsided and normal resort operations resumed. As construction of the Water Trust Project was completed, revegetation works took place in the following areas: • between Arrabri and Swindlers Lodge—340 shrubs planted • from the sewerage farm along the track to below Eiger Lodge—880 shrubs planted • a section of the CSIR Track from GAR down to opposite the CSIR Lodge—600 shrubs planted • a section of the line through Davenport Village past Jack Frost—290 grasses and ground covers planted • from Ormond Lodge to just below Higgi Drive—410 shrubs planted.

Work was completed at the Ultima 2 site where a stormwater pipe was extended. Straw was laid and over 400 shrubs planted.

The on-going weed eradication program continued. Twiggy Mullein and Yarrow along the Great Alpine Road plus some individual blackberry bushes as well as Apple and Willow were treated. Soft Rush in drain lines continues to be a Dec 2006 looking back over Mt Loch from Hotham village problem and will be the target of further works especially on the Sewerage Track.

38 Land Management & Environmental Services Environmental Management

Other future works planned include planting on the Dam levels on the un-burnt eastern slopes of Mt Higginbotham walls, Mother J’s slope, Mother J’s Return and along the have been higher than on the western slopes. In 2006 the CSIR track. Further planting needs to be completed on the number of Burramys recorded on the eastern slopes re- edge of the waterline from Eiger Ski Club towards the Sewer- mained high, and for the first time since the 2003 fires, age Farm. As work is completed at the Sewerage Farm, population levels on the western slopes outnumbered the revegetation work will begin. eastern slopes. It is believed vegetation regeneration in burnt areas will influence the availability of protective cover, Rabbit proofing revegetation works between Arrabri and Swindlers Ski Clubs food and nest sites that will lead to further changes in the population structure.

At Mt Little Higginbotham, current findings show unusually higher levels of male possums than females in 2004 and 2005. This situation is unusual and suggests the structure of the current population has changed since the fires. A similar situation was noted at Mt Higginbotham and resulted in the Resort Management Board constructing the “Tunnel of Love” in 1985. Since the installation of the tunnel the Burramys population has overcome this “social dis- function”. The Resort Management Board will investigate the possibility of further such measures to create a similar link between habitat areas left separated and fragmented from the fires and the Great Alpine Road at Mt Little Higginbotham.

Key findings of the report were: ♦ A total of 24 adult female and 73 adult male Burramys were detected after 1520 trap nights in the Mt Higginbotham and Mt Little Higginbotham area. WILDLIFE MANAGEMENT ♦ Population estimates recorded from the westerm side of Mt Higginbotham rose from 2005 and were close to pre Mountain Pigmy Possum (Burramys Parvus) fire averages. For the third year running, the population estimates calculated for the eastern slopes for Mt In November 2006, Mount Hotham Resort Management Higginbotham were almost double that of the pre fire Board and the Department of Sustainability and Environment average. commissioned wildlife biologist Dean Heinz to undertake a trapping program to assess the population status of the en- ♦ A relatively high number of Burramys individuals were dangered Mountain Pigmy Possum (Burramys parvus) within recorded at multiple trap sites: 12 had moved between the resort. the western and eastern slopes of Mt Higginbotham and 3 were recorded at sites both above and below the The Mountain Pigmy Possum or Burramys is the only mam- “Tunnel of Love”. mal restricted to the alpine and sub-alpine areas of mainland Australia. Currently, three distinct genetically regional popu- Much of the habitat of the Burramys at Mt Hotham is lo- lations are recognised, Mt Kosciuszko National Park, Mt Bo- cated within the village and ski field infrastructure. Mount gong to Mt Higginbotham (located within the Mt Hotham Re- Hotham Resort Management Board remains committed to sort) and Mt Buller. Substantial colonies occur within the protecting and conserving the Burramys and their habitats resort, in particular at Mt Higginbotham and Mt Little within the resort and will revise the suggested management techniques suggested by the report. Higginbotham. Their main habitat is basalt boulderfield and associated heath vegetation above 1400 metres elevation. Predator Control Program

This investigation fulfilled an important component of the Mount Hotham Resort Management Board continues to overall monitoring done within Victoria following the 2003 support the Predator Control Program conducted by Parks Victoria and DSE. A baiting program is aimed at controlling fires and aimed to provide the Resort Management Board ® with information on the current status of Burramys and pro- foxes by the use of DeFox poison baits in the resort and vide further recommendations to assist with management surrounding Alpine National Park to protect the Mountain and conservation of this endangered species. Trapping was Pigmy Possum population. completed by Dean using the Elliott trap in locations on Mt Higginbotham and Mt Little Higginbotham. Traps were ENVIRONMENTAL EDUCATION checked daily and captured Pigmy Possums were weighed, During the past year the Board has been proactive in bring- sexed and new animals fitted with an individually numbered ing greater environmental awareness to the wider commu- stainless steel ear tag before being released at their point of nity through the following initiatives: capture. • Development of Environmental guidelines for construction and maintenance works 15% of the area surveyed on the western slopes of Mt • Environmental page on the Board Website Higginbotham was burnt in 2003. Since the fires, population

39 Utilities Sewage Treatment and Potable Water

Objective To ensure: delivery of quality and reliable utility services including water, sewerage, solid waste, drainage, car parks and roads, insurance (assets), and building maintenance

So that: the needs of the customer are met providing both the Board and the resorts success.

POTABLE WATER SEWAGE TREATMENT

The Mt Hotham Alpine Resort Management Board The treatment capacity of Mt Hotham Waste Water Treatment provided a total of 90 megalitres of potable water Plant has been compromised for several years, this has meant to our customers under our bulk diversion licence. variable effluent quality being discharged on occasions; the pri- mary cause of this situation has been too short a detention time It is interesting to note that Stream flows in Swin- during peak periods. This has been exacerbated by stormwater dlers Creek are higher in 2007 than 2006. The infiltration during peak rain events further reducing detention time average stream flows from 2000 to 2006 is 3,020 through hydraulic overloading. MG/L annually. Up until late August 2007 total stream flow was 1,638 MG/L. The 2007 ski season resulted in record sewerage flows into the plant and on several days the peak flow reached over 1,000,000 The resort management achieved 98% compliance litres. for drinking water quality as regulated by Dept of Human Services, Public Health. As a result of the augmentation works conducted in conjunction with the Water Recycling Project these underlying problems have One e.coli organism per 100ml was detected in the been rectified. An additional bioreactor has been constructed, sample taken from a sampling tap within our U V upgraded control systems have been installed, chemical dosing disinfection building in late September. Samples systems have been installed, and these upgrades will provide taken on the same day from our reticulation sys- longer detention time and better control of the biological process. tem within the resort showed no e. coli. This results in consistent effluent quality, reduced nutrient levels Due to the busy summer construction program the and overall more efficient plant operation. new potable water pump station was not fully com- Perhaps the most significant sewerage upgrade will be final commissioned. missioning of the Ultra filtration plant, this will allow advanced The pumps in the original pump station had bear- tertiary treatment of all the of the Resorts effluent. The only ex- ings replaced to ensure their smooth ongoing op- ception to this may occur when the UF plant is on by pass due to eration. These maintenance procedures are under- excessive storm water infiltration. taken by RMB staff who have extensive knowledge The construction of the new bioreactor tank provides approxi- of this infrastructure componentry. mately 40 % increase in overall capacity which will provide a rea- Overall the supply and distribution of the potable sonable buffer for stormwater infiltration. As future Resort devel- water on the mountain in 2007 was successfully opment occurs further tankage space will be required. undertaken. The Board has implemented an ongoing maintenance program to upgrade the sewer system and reduce stormwater infiltration. This included the servicing of a number of sewerage pump stations within the Resort which are now fully operational.

Full compliance with our discharge license was not achieved in 2007. The license has four parameters with which the RMB must comply. They are BOD (Biological Oxygen Demand), suspended solids, e coli and pH. Due to the commissioning of the ultra filtration unit the existing biological treatment processes were at times compromised. Con- sequently individual license parameters were affected. These anomalies were not uniformly evident in all laboratory analysis results.

The Board is confident that when all the capital improvements have been completed and final commissioning of the ultra filtration plant is achieved, the feed water quality (secondary effluent) will be of a consistent standard suitable for efficient operation of New tanks at the sewerage treatment plant the ultra filtration plant. This will allow the Board to consistently meet EPA licence requirements.

40 Utilities Solid Waste Management

GARBAGE AND RECYCLING COLLECTION

The winter 2007 saw early snow falls which provided a good snow cover throughout the season, record visitor numbers and increased amounts of recycling and a decrease of waste to landfill.

Education is a valuable tool to increase recycling and reduce waste to landfill and littering. A number of solid waste briefings were held within the Resort Management and the Skiing Com- pany staff inductions with great success. Previously badly presented garbage from staff accommodation was much improved with more and cleaner recyclables. It proved more difficult to reach smaller operators and their staff. ‘Talking Garbage’, a weekly article in the ‘Hotham Times’ with educa- tional content was aimed at lodge managers and operators. An Education Plan is being prepared by the Solid Waste Man- ager.

David Abbot, Ed Nolle and Jeremy Reynolds provided a reliable garbage collection service during the winter season. The Board currently has the following plant for garbage services: The 6X6 Landcruiser and trailer combination is used to Ski-Dozer transfer recyclables from Hotham to Dinner Plain. From Toyota Landcruiser 6X6 there the unsorted and un-compacted recyclables are Twin axle trailer transferred to Omeo by a contractor at the cost of $10 Compactor truck per m3. Alpina Sherpa A trailer swap with the contractor this season saved a

lot of time and manual handling.

Waste to landfill and recycling Areas of improvement are required in managed apartments, public concourses and public place recycling. 2500 New litter hot spots have been identified at the Ski- School meeting place out side of Hotham Central, the 2000 loading station at the bottom of the summit lift and in lost airspace @ the transit lounge. The hot spots will be equipped with 1500 Cobungra landfill public place recycling bins for the season 2008.

Compacted 1000 LITTER recyclables The Litter Management Program is part of the Boards 500 ongoing commitment to our alpine environment and protecting the water catchment areas fed by the resort. 0 Litter officers reported a successful winter campaign. 02 03 04 05 06 07 /20 /20 /20 /20 /20 /20 Cigarette butts are especially damaging due to toxins 01 02 03 04 05 06 leaked into the water. Once again our officers ap- 20 20 20 20 20 20 proached people distributing complimentary personal “butt bins” and generally spreading the environmental message. Stations comprising a rubbish bin, recycled The amount of waste to landfill decreased significantly in the bin and butt bin were installed at each bus stop and financial year 2006/07. throughout the resort and were well used.

Recycling and waste by financial year Trends show much of the litter collected in the resort is from between bus stops along the Great Alpine Road presumably as “happy patrons” leave bars at night and lost air- walk home. Education has not proved effective in solv- space @ ing this problem and officers are looking at alternative Cobungra Compacted % recov- solutions including extra bin placement.

landfill recyclables ered The ski school muster area is proving to be another 2001/2002 1430 334.4 19 area of high litter collection. Mount Hotham Skiing 2002/2003 1410 524.15 27 Company have been approached regarding further bin 2003/2004 1380 675.95 33 placement. Officers have also approached the Skiing Company regarding promoting the litter message via 2004/2005 2200 504.35 19 “Snow TV” and signage at the bottom of lifts and on lift 2005/2006 1731 569.8 25 towers. 2006/2007 965 613.8 39 41 Business Undertakings Gas Operations

Objective To ensure: management of a LPG Gas system incorporating a bulk gas storage and high pressured reticulation throughout the village in a safe and effective manner

So that: compliance with regulations is met, the operation is cost effective and a reliable supply is available at the best price to lessees.

GAS MANAGEMENT

The Board continued to upgrade and provide new gas infrastructure this financial year 2006/2007. A new service connection was provided to the upgraded sewage treatment plant to service the new Ultra Filtration building.

The Board continued with new LPG mains installation in conjunction with the snowmaking and waste water project along the Playground trail from the Basin to Sun Run. This main will eventually service developments at the Loch Car Park area.

LPG use has varied, the 8 year average consumption is 776 tonne. The 2000 consumption skews the result due to an early cold snow season. Overall there is a slight tend away from LPG, supported by anecdotal evidence where customers have installed all electric heating. The Board will monitor this situation and Energy Safe Victoria conducted an annual audit of the evaluate options to grow market share in future years. lpg system and a revised Safety Case has been pro- LPG propane continues to be a clean efficient and cost duced in 2007 effective energy source. Regular maintenance works on the lpg system continue A system review has been conducted by GHD to deter- annually, including; cathodic protection survey, lpg leak mine existing system capacity and future loads given survey, regular servicing of tank components and con- the new developments proposed for the resort. A ten- tinuation of the ten year regulator and metre change der document is to be released in the new year for the over program.

supply and transport of LPG to the resort. The advent of new developments in the village will see an increase of service to apartments and buildings.

Year Litres Year Tonnes Tonnes Average Average Average

Cost annual winter $ per Litre $ per KG $ per GJ

2000 1731055 $677,561 938 781 $0.3680 $0.7215 $15.9139

2001 1474556 $608,712 757 599 $0.4099 $0.8038 $17.7287

2002 1476688 $593,988 753 622 $0.4023 $0.7889 $17.3994

2003 1529817 $518,910 780 622 $0.3391 $0.6650 $14.6664

2004 1536007 $573,544 783 647 $0.3734 $0.7323 $16.1522

2005 1470627 $667,967 748 613 $0.4558 $0.8938 $19.7137

2006 1424804 $691,939 724 585 $0.4865 $0.9577 $21.1231

2007 1417583 $719,258 728 570 $0.5073 $0.9876 $21.7826

42 Business Undertakings Victorian Alps Nursery

Objective To ensure: Operation of a nursery facility that provides high quality alpine plants including grasses, shrubs, herbs and trees to support all Alpine Resorts and National Parks

So that: there is an ongoing supply of these native plants for revegetation works related to development and fire.

Victorian Alps Nursery

In July 2005, the then Minister for Environment, John Thwaites announced the Mount Hotham Resort Manage- ment Board would acquire the Ovens Alpine Nursery from the Department of Sustainability and Environment. The Alpine Resorts 2020 strategy cites the alpine resort management board’s are responsible for rehabilitating degraded areas and improving the management of ski field areas to enhance, protect and restore vegetation communities. With no commercial nurseries supplying plants indigenous to the alpine regions, the Board realised the importance of the nursery to provide reliable quantities of a diverse species of plants for revegetation and rehabilitation projects. The nursery, now known as Nursery Manager Annie Marlow at the nursery in Ovens the Victorian Alps Nursery, is located between Bright and Myrtleford and production under the last 2 and a half years of Board management has seen the nursery grow threefold. Ongoing research by staff will ensure further species are obtainable and a better understanding of plant growth and development for successful regeneration is available.

Mount Hotham Resort Management and the Mount Hotham Skiing Company currently source all plants, shrubs and grasses for revegetation works from the Vic- torian Alps Nursery. Other current work underway includes propagation of 15,000 plants annually for Mount Buller and 1,500 Poa tube stock annually for Perisher Blue. 2008 will see the first harvest of Poa seed for Per- behalf of Parks Victoria. Parks Vic and the Bogong High isher Blue from the nursery. Other propagation work in Plains Restoration Alliance have also commissioned the progress includes plants for fire recovery within Mount nursery to grow wetland species for the restoration of Al- Buffalo National Park and the Alpine National Park on pine wetlands. More recently, as a result of a request from Parks and Wildlife Service NSW, the nursery has taken on a contract to grow a large number of plants for the restoration of an old sewage pondage site at Smiggins Holes. The propagation will be over the next 2 to 3 years.

Plant material used for propagation must be taken from the alpine area it is intended to be used for. This is referred to as provenance specific and requires the nursery staff to develop a wide knowledge of a range of plants as well as the aspects and altitudes they grow. Staff must also have an understanding of the various methods of seed and plant material collection. Currently, the nursery employs 3 part time staff, all with skills in handling alpine plant species. Management and staff of the nursery would like to thank Bev Lawrence, the Board’s Environ- ment Officer for the invaluable assistance she provides with her expertise of the alpine area.

43 Financial Management Letter from the Auditor General

44 Financial Management Letter from the Auditor General

45 Financial Management

MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD OPERATING STATEMENT FOR THE YEAR ENDED 31 OCTOBER 2007

Note 2007 2006 $$

Revenue

Government Contributions 4,808 2,000 Rendering of Services 7,184,829 6,693,394 Contribution to Water Recycling Project 2,090,000 - Interest 68,250 92,287 Other Revenue 329,596 358,454 2 9,677,483 7,146,135

Expenses

Infrastructure services 1,688,925 1,727,270 Village operations 1,004,487 839,370 Visitor services 1,478,842 1,411,644 Administration 2,388,013 2,048,305 Marketing 425,759 394,979 Board costs 188,087 104,231 Borrowing costs 93,837 - Water Recycling Project - Transfer of Snowmaking Plant and Equipment 1,163,713 - Total Expenses 3 8,431,663 6,525,799

Net Result for the Reporting Period 1,245,820 620,336

Net Increase in Asset Revaluation Reserve 29,229,650 -

Total Revenues, Expenses and Revaluation Recognised in Equity 29,229,650 -

Total changes in equity other than those resulting from transactions with the 30,475,470 620,336 Victorian State Government in its capacity as owner

The above Operating Statement should be read in conjunction with the accompanying notes.

46 Financial Management

MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD BALANCE SHEET AS AT 31 OCTOBER 2007

Note 2007 2006 $$ ASSETS

Current Assets Cash assets 4,20 1,609,014 970,849 Receivables 5,20 568,234 869,677 Inventories 6 184,024 181,414 Prepayments 130,723 122,962 Total Current Assets 2,491,995 2,144,902

Non-Current Assets Property, Plant & Equipment 7 87,058,515 54,758,778 Total Non Current Assets 87,058,515 54,758,778 TOTAL ASSETS 89,550,510 56,903,680

LIABILITIES Current Liabilities Payables 8,20 870,115 1,170,127 Provisions 9 637,280 539,373 Total Current Liabilities 1,507,395 1,709,500

Non-Current Liabilities Treasury Corporation of Victoria 2,090,000 - Provisions 9 20,827 15,857 Total Non-Current Liabilities 2,110,827 15,857 TOTAL LIABILITIES 3,618,222 1,725,357

NET ASSETS 85,932,288 55,178,323

EQUITY Contributed Capital 10.2,21 31,468,328 31,189,888 Asset Revaluation Reserve 10.3 48,860,895 19,631,245 Accumulated Earnings 10.1 5,603,010 4,357,190 TOTAL EQUITY 10.4 85,932,233 55,178,323

The above Balance Sheet should be read in conjunction with the accompanying notes.

47 Financial Management

MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 OCTOBER 2007

Note 2007 2006 $$ Total Equity

Total equity at the beginning of the financial year 55,178,323 50,179,987

Net Result for the period 30,475,470 620,336

Transactions with the Victorian State Government: Equity contributions 278,440 4,378,000

Total equity at the end of the financial year 10 85,932,233 55,178,323

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

48 Financial Management

MOUNT HOTHAM ALPINE RESORT MANAGEMENT BOARD CASH FLOW STATEMENT FOR THE YEAR ENDED 31 OCTOBER 2007

Note 2007 2006 $$

Cash Flows from Operating Activities

Receipts from Government 4,808 2,000 Receipts from other entities 9,903,258 7,111,385 Payments to suppliers and employees (6,735,892) (5,604,955) Interest received 68,250 92,287 Interest paid (93,837) -

Net Cash provided by Operating Activities 11 3,146,587 1,600,717

Cash Flows from Investing Activities Payments for property, plant & equipment (4,876,862) (6,309,789) Proceeds from sale of non-current assets - - Net Cash used in Investing Activities (4,876,862) (6,309,789)

Cash Flows from Financing Activities Capital contribution 278,440 4,378,000 Borrowings from Treasury Corporation Victoria 2,090,000 - Net Cash provided by Financing Activities 2,368,440 4,378,000

Net Increase/(Decrease) in Cash Held 638,165 (331,072)

Cash at the beginning of the Financial Year 970,849 1,301,921

Cash at the end of the Financial Year 4 1,609,014 970,849

The above Cash Flow Statement should be read in conjunction with the accompanying notes.

49 Financial Management

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2007

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements consist of an Operating Statement, Balance Sheet,Statement of Changes in Equity, Cash Flow Statement and notes accompanying the financial statements. The general purpose financial report complies with the requirements of Australian equivalents to International Financial Reporting Standards (A-IFRS), other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the requirements of the Financial Management Act (1994) and applicable ministerial directions.

The accounting policies set out below have been consistently applied to all years presented. The Board has taken the exemption available under AASB 1 to only apply AASB 132 Financial Instruments: Presentation and AASB 139 Financial Instruments: Recognition and Measurement from 1 January 2005.

The financial report has been prepared on an accrual basis and going concern basis, using the historical cost convention, except for certain assets which, as noted, have been shown at valuation.

The reporting period covered in the financial statements is 1 November 2006 to 31 October 2007.

The following is a summary of the material accounting policies adopted by the Board in the preparation of the financial report. The policies have been applied, unless otherwise stated.

a) Classification between current and non current In the determination of whether an asset is current or non-current, consideration is given to the time when each asset or liability is expected to be realised or paid.The asset or liability is classified as current if it is expected to be realised or settled within the next twelve months, or cannot be unconditionally deferred by the Board.

b) Basis of preparation These financial statements are the first Mt Hotham Alpine Resort Management Board financial statements to be prepared in accordance with A-IFRS. AASB 1: First Time Adoption of Australian Equivalents to International Reporting Standards has been applied in preparing these financial statements.

Under A-IFRS, there are requirements that apply specifically to not-for-profit entities that are not consistent with IFRS requirements. The Board has determined it does not have profit generation as a prime objective. Consequently, where appropriate, the Board has elected to apply options and exemptions within the A-IFRS that are applicable to not-for-profit entities.

c) Critical accounting estimates The preparation of these financial statements in conformity with A-IFRS required management to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources.The estimates and associated assumptions are based on experience and various other factors that are believed to be reasonable under the circumstance, the result of which form the basis of making the judgements. Actual results may differ from these estimates. It also required management to exercise its judgement in the process of applying the Board's accounting policies. The estimates and underlying assumptions are reviewed on an ongoing basis.

d) Investments Investments are brought to account at cost with interest revenue recognised in the operating statement when it is earned. All investments expected to be disposed of within 12 months of balance date are classified as current assets and all others are classified as non-current assets.

e) Inventories Inventories comprise stores and materials used in the construction of new works and for the repair and maintenance of existing assets. All inventories are valued at the lower of cost and net realisable value.

f) Revenue Recognition Revenue is brought to account when services have been provided or when a rate/tariff is fixed for service charges levied under Section 13 of the Alpine Resorts (Management) Act 1997.

Site rental is recognised under the terms and conditions of each lease and in accordance with the Board's role as a committee of management of Crown Lands under Section 38 of the Alpine Resorts (Management) Act 1997.

Grants and contributions for capital works from all sources are recognised as operating revenue in accordance with AASB 1004. Any grants and contributions received from the Victorian State Government that are deemed as being in the nature of owner's contributions are accounted for as Equity - Contributed Capital, in accordance with UIG 1038 Contributions by Owners Made to Wholly Owned Public Sector Entities.

Contributions recognised as revenue in 2007 amounted to $2,094,080 (2006 $2,000).

g) Receivables Debtors are carried at amounts due. Where necessary interest is charged on overdue debts at the rate of 12% per annum. The Board's stated terms in respect of amounts receivable are payment in full within 30 days.

Bad and Doubtful Debts A provision is made for any doubtful debts, based on a review of all outstanding receivables at balance date. Bad debts are written off in the period in which they are identified. The Board considered that no provision was necessary for bad or doubtful debts as at 31 October 2007. (2006- nil) 50 Financial Management

h) Employee Benefits Employee Benefits In accordance with AASB 119 "Employee Benefits", liabilities for wages and salaries, including non monetary benefits and annual leave entitlements which are expected to be settled within 12 months of the reporting date are measured using remuneration rates expected to apply when the obligation is settled.

Long Service Leave Unconditional vested long service leave representing over 5 years continuous service is disclosed as a current liability, even when the Board does not expect to settle the liability within 12 months as it will not have the right to defer the settlement of the entitlement should an employee take leave within 12 months. Long service leave expected to be paid within 12 months has been measured at nominal value, and long service leave expected to be paid after 12 months has been measured at present value.

Performance Payments Performance payments for the Board's Executive Officers are based on a percentage of the annual salary package provided under their employment contract and is measured as the amounts accrued under the contracts at balance date. These are recognised as a liability.

Superannuation The Board contributes to several Victorian Government superannuation plans. Contributions are charged against income when they are made. Further information is set out in Note 18.

Employee Oncosts Employee benefit oncosts, including payroll tax, are recognised and included in employee benefit liabilities and costs when the employee benefits to which they relate are recognised as liabilities. i) Property, Plant and Equipment Acquisition Fixed assets include land, buildings, infrastructure, plant, equipment, furniture and motor vehicles. Items with a cost or value in excess of $1,000 and a useful life to the Board of more than one year are capitalised. All other assets acquired are expensed.

Fixed assets are brought to account at acquisition cost or in the case of assets acquired at no cost, at a fair value determined by the Board in conjunction with the grantor, at the date they are acquired.

Valuation of Fixed Assets Excluding Land No fixed asset is held at an amount which will exceed its recoverable amount.

Subsequent to the initial recognition as assets, non-current physical assets, other than plant and equipment are measured at fair value. Plant and equipment are measured at cost. Revaluations are made with sufficient regularity to ensure that the carrying amount of each asset does not differ materially from its fair value at the reporting date. Values are assessed annually and supplemented by independent assessments, at least every three years. Land, buildings were revalued by the Valuer - General as at 31 October 2007 at fair value.

Revaluation increments are credited to a revaluation reserve and decrements are recognised as an expense in the operating statement. To the extent that a revaluation decrement reverses a revaluation increment previously credited to and still included in the balance of the asset revaluation reserve, the decrement is debited directly to that reserve up to the value of that prior increment.

Valuation of Land The reported value of the Board's land assets have been determined by the Office of the Valuer-General using the "site value" methodology defined in the Valuation of Land Act 1960.

Under "site value" concepts the value is determined by referring to the market value of the freehold property assuming it is vacant but could be developed in accordance with the current planning scheme to its highest and best use, but having regard to all surrounding facilities both of a beneficial and detrimental nature. As the Board's land is primarily Crown land, occupancy to site holders is provided through the granting of leases over individual sites. As a result of the trading of these leases from one Lessee to another, the value of the Board's land includes both the Board's interest ( as Lessor) in the Crown's leasehold land and the Lessee's interest.

Under fair value the Board's interest in the Crown's leasehold land is measured as the Lessor's interest using Present Value (NPV) calculations based on the income and land values for the period of the individual leases using a discount rate of 8 percent obtained from comparable financial market evidence. Broad area land values have been applied to the other areas of the Board's controlled area based on comparable sales evidence methodology. The addition of these values represents the fair value of the land assets under the Board's control. The figures do not include any improvement values. The revaluation was performed by the Valuer-General Victoria.

Depreciation of Non-Current Assets Depreciation is calculated on a straight line basis to write off the cost or revalued amount of each non-current asset item (excluding land) over its expected useful life to the Board. Additions to non-current assets in the financial year are depreciated from their respective dates of acquisition.

Estimates of remaining useful lives of all non-current asset items are made on a regular basis with an annual review of all major non-current assets.

Depreciation rates currently applied to each class of asset are as follows:

Buildings 2.5% Infrastructure Assets 1.25% to 10% Plant & Equipment 5% to 20% 51 The above rates have remained unchanged from the previous year. Financial Management

i) Property, Plant and Equipment cont.

Impairment of assets Assets are assessed in the normal course of operations for indicators of impairment, except for: - financial Assets - inventories - non-current assets held for sale

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount.Where an asset's carrying amount exceeds its recoverable amount, the difference is written off by a charge to the Operating Statement, except to the extent that the write-down can be debited to an asset revaluation reserve amount applicable to that class of asset.

The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash inflows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of a loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made.

An impairment loss on a revalued asset is credited directly to equity under the heading Revaluation reserve. However, to the extent that an impairment loss on the same class of asset was previuosly recognised in the Operating Statement, a reversal of that impairment loss is also recognised in the Operating Statement.

In the Boards view, asset values do not exceed their recoverable amount from their continued use and their subsequent disposal and as such, no adjustment to these values was made in the reporting period. j) Payables Liabilities are recognised for amounts to be paid in the future for goods or services received, whether or not billed to the Board. The carrying amount of accounts payable approximates net fair value. k) Cash Flow Statement For the purpose of the cash flow statement, cash includes cash on hand, cash at bank and "highly liquid investments" net of any bank overdraft. Cash at the end of the financial year as shown in the cash flow statement is reconciled to the related items in the balance sheet.(see note 4) l) Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST is not recoverable from the Australian Taxation Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense.

Receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or current liability in the balance sheet.

Cash flows arising from operating activities are disclosed in the cash flow statement on a gross basis - i.e. inclusive of GST. The GST component of cashflows arising from investing and financing activities which is recoverable or payable to the taxation authority is classified as operating cash flows. m) Contributed Capital The Financial Reporting Directions under the Financial Management Act 1994 provides that transfers of net assets are to be designated as Contributed Capital. During the year the Department of Sustainability and Environment transferred $278,440 to the Board designated as Contributed Capital. n) Leases A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non - current assets, and operating leases under which the lessor effectively retains substantially all such risks and benefit.

Operating leases are charged to the operating statement in the period in which they are incurred, as this represents the pattern of benefits derived from the leased assets.

The Board has no finance leases. o) Rounding Unless otherwise stated, amounts are rounded to the nearest dollar.

52 Financial Management

2007 2006 $$

NOTE 2 Revenue Revenue Revenue from Government Government grants 4,808 2,000

Service and site fees Site rental 1,210,576 1,096,116 Service charges 2,798,879 2,558,628 Capital development ingoings 182,006 454,688 Gas trading operations 936,593 939,381 5,128,054 5,048,813

Contributions Mt Hotham Ski Company Pty Ltd contribution to the Water Trust Recycling Project 2,090,000 -

Other charges Gate entry 1,966,505 1,586,859 Horticultural supplies 90,270 57,722 Other Revenue 329,596 358,454 2,386,371 2,003,035

Interest 68,250 92,287

9,677,483 7,146,135

NOTE 3 Expenses Included in Expenses are :

Depreciation charge for the period :

Buildings 71,195 71,155 Infrastructure 346,854 341,171 Plant, equipment and motor vehicles 225,013 171,368 643,062 583,694

Employee Benefits Expense Salaries,wages and other oncosts 2,371,767 2,229,107 Superannuation 435,060 215,112 2,806,827 2,444,219

Maintenance 323,017 426,085

Audit Fees Victorian Auditor - General's Office 16,610 15,000 Internal Auditor 21,713 16,500 38,323 31,500

NOTE 4 Cash Assets 2007 2006 $$ Cash at bank and on hand 1,609,014 970,849 1,609,014 970,849

NOTE 5 Receivables

Current Trade debtors 568,234 869,677 Less provision for doubtful debts - - 568,234 869,677

Where necessary interest is charged on overdue debts at the rate of 12% per annum.The carrying -value of debtors approximates fair value.

All debtors have been reviewed by management at period end and no debts are considered doubtful.

53 Financial Management

NOTE 6 Inventories 2007 2006 $$

Current Fuel 7,008 12,961 Gas 44,935 27,747 Inventory 132,081 140,706 184,024 181,414

NOTE 7 Property, Plant & Equipment Land At Valuation 31 October 2007 59,467,865 - At Valuation 31 October 2004 - 31,589,500 59,467,865 31,589,500

Buildings At Valuation 31 October 2007 5,474,000 - At Valuation 31 October 2004 - 4,308,000 Less accumulated depreciation - (138,327) 5,474,000 4,169,673 At Cost 296 25,711 Less accumulated depreciation (32) (1,210) 264 24,501 5,474,264 4,194,174

Infrastructure At Valuation 31 October 2004 10,838,867 10,838,867 Less accumulated depreciation (992,911) (624,410) 9,845,956 10,214,457 At Cost 2,006,349 1,899,408 Less accumulated depreciation (41,040) (62,687) 1,965,309 1,836,721 11,811,265 12,051,178

Plant, Equipment & Motor Vehicles At Cost 1,891,541 1,703,139 Less accumulated depreciation (891,230) (666,217) 1,000,311 1,036,922 Capital Works in Progress 9,304,810 5,887,004 Total 87,058,515 54,758,778

Note 7.1: Property, Plant and Equipment

Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current financial year are set out below. 2007 Carrying Depreciation Carrying amount amount at Additions Revaluation Transfers Expense at end of year start of year Land 31,589,500 27,878,365 59,467,865 Buildings 4,194,174 1,351,285 (71,195) 5,474,264 Infrastructure Assets 12,051,178 106,941 (346,854) 11,811,265 Plant & Equipment 1,036,922 188,402 (225,013) 1,000,311 Capital Works in Progress 5,887,004 4,581,519 (1,163,713) 9,304,810 54,758,778 4,876,862 29,229,650 (1,163,713) (643,062) 87,058,515

Note 7.2: Property, Plant and Equipment

In accordance with the Water Recycling Project Memorandum of Understanding, snowmaking assets worth $1,163,713 were transferred to MHSC Pty Ltd. No other asset disposals occurred in the reporting period. NOTE 8 Payables Trade creditors 509,541 923,648 Other creditors 360,574 246,479 870,115 1,170,127

All trade and other creditors are non-interest bearing. The carrying amount of creditors approximates fair value.

NOTE 9 Provisions

Current Employee entitlements: Long service leave 306,538 206,896 Annual leave 301,210 302,385 Accrued time 29,532 30,092 637,280 539,373

Non-Current Employee entitlements: Long service leave 20,827 15,857 20,827 15,857

54 Financial Management

NOTE 10 Equity 2007 2006 $$ 10.1 Accumulated Earnings Balance at start of year 4,357,190 3,736,854 Result for the Reporting period 1,245,820 620,336 Balance at end of year 5,603,010 4,357,190

10.2 Contributed Capital Balance at start of year 31,189,888 26,811,888 Capital contributions 278,440 4,378,000 Balance at end of year 31,468,328 31,189,888

An amount of $23,345,009 represents the capital portion of the contribution received from the Alpine Resorts Commission as at 30 April 1998. This amount is included in the total contributed capital at 31 October 2007.

Accumulated Earnings as at 31 October 2001 amounting to $1,637,471 was transferred to Contributed Capital in accordance with the then applicable accounting standards AFRB 39 and AFRB 40 (Note 10 ).

In addition, transfers of $6,257,415 since 2001 plus $278,440 this year were received from the Department of Sustainability and Environment and in accordance with the Financial Reporting Direction NO. 2A (FRD 2A ) these amounts were designated as an addition to Contributed Capital.

10.3 Asset Revaluation Reserve Balance at start of year 19,631,245 19,631,245 Net Increment on Revaluation 29,229,650 - Balance at end of year 48,860,895 19,631,245

10.4 Movements in Equity Balance at start of year 55,178,323 50,179,987 Total changes in equity recognised in the operating statement 30,475,470 620,336 Capital contributions 278,440 4,378,000 Balance at end of year 85,932,233 55,178,323

Reconciliation of results to net cash inflow from NOTE 11 operating activities Net Results for the period 1,245,820 620,336

Depreciation 643,062 583,694 Water Recycling Project - Transfer of Snowmaking Plant and Equipment 1,163,713 -

Change in operating assets and liabilities : Decrease/(increase) in receivables 301,443 (180,760) Decrease/(increase) in inventories (2,610) 240,297 Decrease/(increase) in prepayments (7,761) 63,600 Increase/(decrease) in payables (414,107) 175,434 Increase/(decrease) in accrued expenditure 114,150 46,247 Increase/(decrease) in employee entitlements 102,877 51,869 Net Cash Inflow from operating activities 3,146,587 1,600,717

NOTE 12 Financing Arrangements The Mount Hotham Alpine Resort Management Board has no access to any pre-arranged finance facilities.

NOTE 13 Capital Commitments During 2006 the Board signed contracts for the construction of assets associated with the water re use project including the construction of Loch reservoir,additional snowmaking capacity and an upgraded water treatment plant. As at the end of October 2007 the water treatment plant and associated works were in progress. The commitment to complete the balance of the project is $305,000.(2006- $2,090,000)

55 Financial Management

NOTE 14 Lease Commitments At balance date the Board had the following obligation under operating leases: 2007 2006 $$ Not later than one year 155,227 131,195 Later than one year but not later than five years 236,033 223,427 391,260 354,622

Note 15 Future Lease Rent Revenue The Board acting as a Committee of Management under section 38 of the Alpine Resorts (Management) Act 1997, manages 80 Crown leases with site holders. The leases cover periods up to 99 years with expected rent revenue from these leases within the next year of $1,203,200

The Gross amount of leased assets at reporting date 37,174,676 33,146,000

Lease commitments receivable at reporting date nil nil

Not later than one year 1,203,200 1,178,840 Later than one year but not later than five years 4,812,800 4,715,360 Later than five years 31,395,859 32,198,902

NOTE 16 Contingent Assets and Liabilities

Native Title

a) A Native Title claim in relation to Mount Hotham remains unresolved at reporting date. As the claim is yet to be resolved any potential liability is unclear.

b) There are no other contingent liabilities or outstanding claims as at 31 October 2007.

NOTE 17 Superannuation Contributions The Board contributes in respect of its employees to the following superannuation schemes:

Government Superannuation Office - New/Revised Schemes VicSuper Pty Ltd - VicSuper Scheme Government Superannuation Office - State Employees Retirement Benefits Scheme

Contribution details are shown in the following table:

Type of Scheme Rate 2007 2006 %$ $

Government Superannuation Office (Defined Benefits) 9-9.7 17,718 7,388 New/Revised Scheme

VicSuper Pty Ltd (Accumulated Benefits) 9 232,316 180,895 VicSuper Scheme

Government Superannuation Office (Defined Benefits) 12.8 12,344 5,134 (SERBS)

Other (Accumulated Benefits) 9 172,682 21,695

Total contributions to all Funds 435,060 215,112

At reporting date there were outstanding contributions of $5,771 (2006 $nil) payable to the above funds. No loans have been made to the Board from this fund.

There were no unfunded liabilities in regard to the Board's membership of defined benefit superannuation schemes.

56 Financial Management

NOTE 18 Responsible Persons Related Disclosures Responsible Persons The names of persons who were Responsible Persons during the financial year were: Responsible Minister John Thwaites, MP, Minister for Environment ( Resignation effective from 27 July, 2007) Gavin Jennings, MP Minister for Environment and Climate Change (Appointment effective from 3 August, 2007) Board Geoffrey Provis, Chairman of the Board Helen Hughes, Board Member, Deputy Chair (Resignation effective from 28 April 2007). Debbie Goodin, Board Member, Deputy Chair (Appointment effective from 29 April 2007). Annelies Zirknitzer,Board Member (Resignation effective from 28 April 2007). Helen Moran, Board Member Nicole Feeney Board Member, (Appointment effective from 29 April 2007). Roderick Sloan, Board Member Timothy Piper, Board Member Wayne Talbot, Board Member Accountable Officer Jim Atteridge, Chief Executive Officer

Remuneration of Responsible Persons Remuneration received, or due and receivable from the Board in connection with the management of the Board for the financial period ended 31 October 2007 was $302,511 (2006 - $240,813)

The number of Responsible Persons whose remuneration from the Board was within the specified bands are as follows: 2007 2006 No. No. $0 - $9,999 6 6 $10,000 - $19,999 1 1 $180,000 - $189,999 1 $200,000 - $219,999 1 88 The relevant Minister's remuneration is reported separately in the financial statements of the Department of Premier & Cabinet.

Retirement Benefits of Responsible Persons There were no retirement benefits paid by the Board in connection with the retirement of Responsible Persons of the Board during the financial year.

Loans At 31 October 2007 there were no loans in existence that have been made, guaranteed or secured by the Board to a Responsible Person of the Board or a related party of a Responsible Person.(2006 - nil)

NOTE 19 Related Party Disclosures (cont) Other transactions:

Ms. Helen Moran is the Group General Manager, Property Division of Australian Alpine Enterprises Pty Ltd, the parent company of MHSC Pty Ltd, which has dealings with the Mount Hotham Alpine Resort Management Board. All transactions are conducted on an arms length commercial basis between the two organisations and during the year the Board paid $331,536 to MHSC.

At reporting date the Mount Hotham Skiing Company Pty Ltd owed $163,332 to the Board, being unpaid amounts for annual transport levy, gas, annual service charges and site rental.

57 Financial Management

NOTE 20 Financial Instruments (A) Interest Rate Risk Exposure

The Mount Hotham Alpine Resort Management Board's exposure to interest rate risk and the effective weighted average interest rate for classes of financial assets and financial liabilities is set out below:

Weighted Average 1 Year More Than Floating Non-Interest 2007 Note Interest Rate or Less 5 Years Interest Bearing Total $$ $ $ $ Financial Assets Cash 4 4.08% 1,609,014 1,609,014 Receivables 5 568,234 568,234 - - 1,609,014 568,234 2,177,248

Financial Liabilities

Accounts Payable 8 870,115 870,115 Variable Rate Borrowings - TCV 6.58% 2,090,000 2,090,000 - 2,090,000 - 870,115 2,960,115

Weighted Average 1 Year Over 1 Year More than Non-Interest 2006 Note Interest Rate or Less to 5 Years 5 Years Bearing Total $$ $ $ $ Financial Assets Cash 4 3.87% 970,849 970,849 Receivables 5 869,677 869,677 - - 970,849 869,677 1,840,526

Financial Liabilities

Accounts Payable 8 - 1,170,127 1,170,127 - - - 1,170,127 1,170,127

(B) Credit Risk Exposures

The credit risk on financial assets of the Mount Hotham Alpine Resort Management Board which have been recognised on the balance sheet is the carrying amount, net of any provision for doubtful debts.

The Board's maximum exposure to credit risk at reporting date in respect to financial assets is limited to the carrying amount in the balance sheet.

The carrying amounts of accounts receivable and accounts payable approximate their fair value.

NOTE 21 Contributed Capital

On 29 April 1998 the Alpine Resorts Commission was dissolved and seven (7) bodies were established in its place, one of these bodies being the Mt Hotham Alpine Resort Management Board.

The equity from the Alpine Resorts Commission was allocated to the newly formed bodies by the Minister for Conservation and Land Management pursuant to Section 59 of the Alpine Resorts (Management) Act 1997. The allocation received from the Alpine Resorts Commission included revenue and capital items.

CERTIFICATION OF FINANCIAL REPORT

In our opinion, the financial report of the Mount Hotham Alpine Resort Management Board, comprising the Operating Statement,Balance Sheet, Statement of Changes in Equity and Cash Flow Statement and notes to and forming part of the financial statements, for the year ended 31 October 2007:

(a) Present fairly the financial transactions of the Mount Hotham Alpine Resort Management Board during the year ended 31 October 2007 and its financial position as at 31 October 2007; and

(b) Have been prepared in accordance with Standing Direction 4.2 of the Financial Management Act 1994 , applicable Financial Reporting Directions, Australian accounting standards and other mandatory professional reporting requirements.

At the date of signing we are not aware of any circumstances which would render any particulars included in the report to be misleading or inaccurate.

Geoffrey Provis CHAIRMAN / /

JIM ATTERIDGE CHIEF EXECUTIVE OFFICER / /

59 Appendices Appendix One: Disclosure Index

The 2006/07 Annual Report of the Mt Hotham Alpine Resort Management Board is prepared in accordance with all relevant Victorian legislation. This index has been prepared to facilitate identification of the authorities’ compliance with statutory disclosure requirements.

Legislation Requirement Page Ref

22A Manner of establishment and the relevant Ministers 20

22A Objectives, functions, powers and duties 6, 20

22A Nature and range of services provided 7

22A Organisational structure, names and functional areas of responsibility of senior officers 16, 17

22A Names of board members 14, 15

22A Statement of workforce data for current and previous financial year 18

22A Merit and equity 19

15A Executive officer disclosures 57

22A 5 year summary of the financial results 9

22A Significant changes in financial position during the year 9

22A Objectives and performance against objectives 9

22A Major changes or factors affecting performance 9, 10, 12

22A Subsequent events which will affect operations in future years NONE

22A Details of consultancies > $100,000 and total No. and cost < $100,000 21

12A Disclosure of major contracts 21

22A Application and operation of FOI Act 1982 21

22A Application and operation of the Whistleblowers Protection Act 2001 22

22A Compliance with building and maintenance provisions of Building Act 1993 32

22A Statement on NCP 21

22A OHS 19

10 Disclosure index 60

22A Statement of availability of other information 21

Legislation Requirement Page Ref

FINANCIAL STATEMENTS

Financial Statements required under Part 7 of the FMA

SD4.2(f) Model Financial Report N/A

SD4.2(b) Operating Statement 46

SD4.2(b) Balance Sheet 47

SD4.2(a) Statement of Recognised Income and Expense 46

SD4.2(b) Cash Flow Statement 49

SD4.2(c) Accountable Officer Declaration 57

SD4.2(c) Compliance with Australian Accounting Standards and other authoritative 50 pronouncements

SD4.2(c) Compliance with Ministerial Directions 50

SD4.2(d) Rounding of Amounts 52

Other Disclosures in notes to the financial statements

FRD9A Departmental disclosure of administered assets and liabilities NIL

FRD11 Disclosure of ex-gratia payments NIL

FRD21A Responsible person and executive officer disclosures 57