2014/15 Annual Report
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2014/15 ANNUAL REPORT In accordance with the Financial Management Act 1994, we are pleased to present the Mount Hotham Resort Management Board’s Annual Report for the year ending 31st October 2015. Deborah Spring | Chairperson Mount Hotham Resort Management Board 13th January 2016 Jon Hutchins | Chief Executive Officer Mount Hotham Resort Management Board 13th January 2016 2 MT HOTHAM RESORT MANAGEMENT BOARD 2014-2015 ANNUAL REPORT INTRODUCTION 4 OUR YEAR ROUND RESORT 37 Chair’s report 4 Visitor services 37 Chief Executive Officer’s report 5 Resort entry and parking 37 Board members 6 Marketing and customer services 37 Website 38 ABOUT THE RESORT 9 Communications and publications 38 Our history 9 Events 38 Our vision and mission 10 Regional marketing 39 Our strategy 10 Strategic partners 39 Nature and scope of activities 11 Walking trails 39 Financial summary 12 Key performance indicators 14 OUR ENVIRONMENT ON THE RIDGE 40 Sustainability 40 OUR CUSTOMER AND Threatened species and COMMUNITY FOCUS 18 biodiversity conservation 41 Our human resources and Environmental programs 41 organisational development 18 Environmental education 41 Organisational structure 19 Victorian Alps Nursery 42 Ski patrol and skier safety 20 Our strategic partnerships 42 Snow play 22 Cross-country skiing 22 OUR CORPORATE GOVERNANCE 43 Transit operations 23 Information and communication systems 43 Emergency management 43 OUR SERVICES 24 Community areas 44 Utilities 24 Risk management 44 Potable water 24 Statutory reporting 45 Wastewater 25 Solid waste management 26 INDEPENDENT AUDITOR’S REPORT 47 Gas operations 27 Asset management 28 FINANCIAL STATEMENTS 49 Geotechnical program 28 Capital works 29 DISCLOSURE INDEX 82 Fleet maintenance 30 OUR DEVELOPER SERVICES 31 Master Plan 31 Growth Development Plan 31 Native vegetation 32 Bushfire management 32 Leasing 33 Building services 33 Property sales 34 Statutory planning 35 Environmental health services 36 ANNUAL REPORT 2014/15 3 INTRODUCTION CHAIR’S REPORT It has been an exciting year for us with welcoming These include: ENVIRONMENTAL MANAGEMENT PLAN Jon Hutchins as our new CEO in January 2015. • Australia’s only Pygmy Possum Love Tunnel, Late this year we adopted our new Environmental It was sad to say goodbye to our long-standing • The Swindlers Valley pipeline project to protect Management Plan, which addresses six key issues: CEO Jim Atteridge, and we wish him well with his the resort’s major water course, and new endeavours. 1. Landfill operations – impacts on surface • The wastewater treatment project, which and groundwater, Jon has been involved in the Victorian Alpine provides Class A water for the snowmaking 2. Diesel fuel consumption, Region since 1998 with roles at Mt Buller, Mt system. Stirling and as Mt Hotham Resort Management 3. Climate change impacts, Board’s former Chief Financial Officer (2008- DEVELOPMENT GROWTH PLAN 4. Greenhouse gas emissions, 2013). Jon hit the ground running with his 5. Biodiversity conservation and threatened The Mt Hotham Development Growth Plan (Plan) approach to engage stakeholders and work species, and together to build the Mt Hotham brand. sets out a strategy for the physical (property) development of the Mt Hotham Resort. This 6. Cultural heritage. Winter season 2015 saw snowmaking put to good development is focussed upon the five-year A calendar of activities has been set to begin use, allowing there to be three lifts operating period commencing mid-2015. The document addressing these issues. over opening weekend. Natural snow fell in early builds upon the strategic planning, master July, kicking off what turned out to be a season planning and market research work previously MASTER PLAN to remember. Temperatures stayed low through undertaken by the Mt Hotham Resort Management August and September keeping snow on the Board (MHRMB) and several other Mt Hotham The purpose of the Master Plan is to facilitate ground until the very end of the season. stakeholders. smoother development approval but also to align the community with the strategic direction of the OUR UNIQUE MOUNTAIN It communicates priority property development resort. We believe the best way to develop the related activities to be undertaken to contribute resort is through alignment of all our stakeholders Mt Hotham is internationally recognised as one of to the success of all resort and Mt Hotham region around a common, collective purpose. the top 25 skiing mountains in the world and one stakeholders. of the top five cycling hill climbs in the world. The Our stakeholders include the Mt Hotham following attributes make Mt Hotham unique: Property development is one of many factors that community, our Indigenous owners the will contribute to the sustainable success of Mt • It is the highest alpine village in Australia, Gunaikurnai and the adjoining communities along Hotham. It is prompted by and responds to a wide the Great Alpine Road including Dinner Plain, • It has spectacular 360 degree views, range of interrelated factors including visitation Harrietville and Bright (Alpine Shire), Omeo, Swifts • It has the most challenging terrain in Australia, and occupancy levels, branding, marketing, Creek and Ensay (East Gippsland Shire), and • Its topography, with the Great Dividing Range, cultural dynamics, physical constraints, product adjoining land managers. and offering, existing conditions and competing forces. The Plan references a mix of non-property The Master Plan was presented to the Minister in • The Great Alpine Road is one of only two Great activities that we will undertake in order to September 2015. roads in Australia. stimulate future property, infrastructure and built- While the remote and high altitude location may form requirements. have impeded development in the past, there have been tremendous innovations in the past 15 years Deborah Spring | Chairperson to overcome these challenges while ensuring the Mount Hotham Resort Management Board marvellous natural environment is retained. 4 MT HOTHAM RESORT MANAGEMENT BOARD CEO’S REPORT It has been a privilege to spend this year as the This approach was demonstrated in We achieved best practise levels for our financial incoming Chief Executive Officer with such support several of the key achievements for the year, audit and compliance, gas safety, Environment from Mt Hotham stakeholders and the resort which include: Protection Authority (EPA), Department of Health management staff and Board members. • Completing stage 2 of the Swindlers Valley and Human Services (DHHS), Emergency and Bushfire Management Plans, and a Victorian A large part of my career has involved working in the project; ahead of schedule and below budget, Auditor-General’s Office (VAGO) audit found mutual/co-operative financial sector, where smaller • Opening the Brabralung Trail with the MHRMB had a healthy operating surplus and was industry participants can compete successfully Gunaikurnai, our Indigenous land owners, in a strong financial position. against much larger players when they are prepared Parks Victoria and Dinner Plain/Alpine Shire, to co-operate and work together. We are in a similar • Establishing Australia’s first roundshot camera, Our 2016 budget has set annual service charges at a position at Mt Hotham where we compete not only minimal two per cent increase and maintained resort • Installing new entrance signage, bus stop on the mountain but also against other Australian pricing at similar rates to 2015 where possible. designs and sealing our road verges, mountains, island resorts, football, overseas snow Upcoming exciting challenges and opportunities: and mountain experiences and the beach in summer. • Reducing confusions and delays on the Great Alpine Road during extreme winter periods, • The construction of major facilities and car I have been overwhelmed by the enthusiasm • Accommodating record numbers of vehicles parks at the Asgaard and Tantani sites, and co-operation we have received from the Mt within the resort on two weekends of the • A $4.4 million investment by the Mt Hotham Hotham community and surrounds since I started season, Skiing Company in snowmaking for the in January 2015. Mt Hotham Resort Management Summit, Imagine and Canyon areas of Board (MHRMB) has laid the foundation for • Recording average visitation levels despite no Heavenly Valley, this co-operation in recent times with forums natural snowfalls during the peak July school to develop the resort’s Strategic Management holiday period, • The redesign of the Hotham Central and Plan and Master Plan. The Consultative Forum • Establishing the foundation for the Hotham Corral car park areas for safer pedestrian and has provided invaluable feedback and input Auto Corsa event despite not being able to hold vehicle flows, on providing more effective Board services for the event in 2015, • Opportunities for re-opening the Hotham leaseholders, commercial operators, surrounding • Continuing our native revegetation program in Airport for commercial flights from Adelaide, communities and most importantly guests. the resort with a record 60,000 native plants Melbourne and Sydney, We had record numbers attend our stakeholder produced by our Alpine Nursery, • Further design and consultation on the Falls forum at the MCG in May 2015, and our marketing • Trialling new hard waste collection and to Hotham Alpine Crossing as one of four meetings with commercial operators in August processing including organic waste recycling, iconic walks to attract summer trekkers from domestic and international