2015-03-31 Planning & Organisation Committee Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                        31 MARCH 2015


Procurement
Council has provided an invitation to quote to four (4) suitably qualified suppliers, with
submissions due on Thursday 26 March 2015. The firm pricing received from suppliers will be
entered into the cost benefit analysis model to confirm the suitability of capital investment in PFC
at these sites. Given the timing of Council meetings and the logistics of procuring and installing
the PFC equipment and then securing the subsidies available (ending 30 June 2015), it was
deemed prudent to provide this report to the 31 March 2015 committee meeting for
consideration.

Previous Council Consideration
Nil

Finance & Risk
A decision is expected shortly by the regulator regarding the Energex regulatory pricing proposal.
If the regulator dismisses the proposal there is no need for Council to invest in power factor
correction for the purpose of mitigating cost impacts. However, it is reasonable to consider this
unlikely particularly in the context of the detailed funding and reward programme already put in
place and operational by Energex.

Obviously any move to proceed with the purchase and installation of PFC equipment would need
to balance the risk around the regulators decision and also the lapse of the subsidy program
(although the loss of $5k in subsidy would not result in any changes in NPV outcomes that would
alter the decision to invest). It will be prudent to wait until the decision by the regulator is made
before commencing with any investment commitment.

In terms of the funding of the PFC equipment should the project proceed, the expenditure would
be considered capital in nature, and if approved would need to be sourced in the 3rd quarter
budget review.

Consultation

External Consultation - Community & Stakeholder
Energex representative in demand management delivery
Council’s current large site electricity retailer
Robyn Barrett (consultant).

Internal Consultation
Manager Procurement / Fleet

Departments/Sections Consulted:

      Community Services                                Planning & Infrastructure
      Disaster Management & Public Order                Building & Plumbing Services
      Waste & Environmental Health                      DA Planning
      Community Facilities                              Strategic Land Use Planning
      Cultural Facilities                               Asset Design & Investigations
                                                        Asset Planning
                                                        Civil Operations
                                                        Environment

      Executive Office                          x       Corporate Services
      Community Engagement                              Finance
      Customer Service                                  ICT
      Executive Support                             x   Procurement & Fleet
      Governance                                        Property & Facilities
      Human Resources                                   Revenue Services



                                                                                          Page 13 of 53