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2021-04-06 Services and Organisation Committee Meeting Agenda
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AGENDA
Services & Organisation
Committee Meeting
Tuesday, 6 April 2021
commencing at 1.30pm
Council Chambers, 9 Pelican Street, Tewantin
Committee: Crs Joe Jurisevic (Chair), Amelia Lorentson, Clare Stewart, Frank Wilkie
“Noosa Shire – different by nature”
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Section 2
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
TABLE OF CONTENTS
ITEM PAGE
1 ATTENDANCE & APOLOGIES 3
2 CONFIRMATION OF MINUTES 3
3 PRESENTATIONS 3
4 DEPUTATIONS 3
5 REPORTS FOR CONSIDERATION OF THE COMMITTEE 4
1 PARK ROAD TEMPORARY PATH UPGRADE FURTHER INFORMATION 4
2 TENDERER FINANCIAL CAPACITY ASSESSMENT POLICY AND GUIDELINE 7
6 REPORTS FOR NOTING BY THE COMMITTEE 17
3 WASTE MANAGEMENT - 6 MONTHLY REPORT JULY TO DECEMBER 2020 17
7 CLOSED SESSION 27
Page 2 of 27
Section 3
SERVICES & ORGANISATION COMMITTEE MEETING REPORT 06 APRIL 2021
1 ATTENDANCE & APOLOGIES
2 CONFIRMATION OF MINUTES
The Minutes of the Services & Organisation Committee Meeting held on 9 March 2021 be
received and confirmed.
3 PRESENTATIONS
Nil.
4 DEPUTATIONS
Nil.
Page 3 of 27
Section 4
SERVICES & ORGANISATION COMMITTEE MEETING REPORT 06 APRIL 2021
5 REPORTS FOR CONSIDERATION OF THE COMMITTEE
1 PARK ROAD TEMPORARY PATH UPGRADE FURTHER INFORMATION
Author Special Projects Coordinator, Adam Britton
Infrastructure Department
Index ECM / Streets (T1) / Park Road
ECM / Projects (T1) / Noosa Heads - Park Road boardwalk design -
CAP.WORK – 500043
ECM / Subject / Roads Management / Maintenance
Attachments Nil.
EXECUTIVE SUMMARY
Not applicable
RECOMMENDATION
That Council note the report by the Special Projects Coordinator to the Services & Organisation
Committee Meeting dated 6 April 2021, providing further design information and approve an
upgrade to the temporary path constructed as part of the previously completed Park Road
Boardwalk project to a permanent pathway, with funding to be sourced when available at a future
budget review.
REPORT
At the Ordinary Meeting dated 15 October 2020, Council sought further information from the
Infrastructure Department Design Team in relation to the following:
1. The design standards;
2. The relevance of the temporary path to the local footpath network.
1. Design standards
The temporary path was constructed within Park Road road reserve to facilitate pedestrian access
to the Noosa National Park during construction of the Park Road Boardwalk between April and
November 2018 with a design life to reach to the end of the two-year defect liability period. Given
the original temporary intentions for the path, steep terrain and vegetation, the path was designed
to minimise earthworks and clearing whilst also minimising costs.
It was determined that Australian Standard AS2156 Class 3 track provided sufficient allowances
to deal with the steep terrain and reducing impact to the environment yet meet a recognised
standard.
In considering the path beyond the original two-year asset life, the engineering design and footpath
standard has been reviewed as per below.
a. Engineering design
With the original intention of a short asset life and minimal impact on the environment, the footpath
was designed by consulting engineers with sandbag batter protection in lieu of concrete footings,
fibre reinforcement in lieu of steel reinforcement and timber handrails. Following an engineering
review of the original temporary path design it has been determined that by upgrading the batter
protection and replacing the timber handrails with aluminium this would allow an engineering
certified design life for 15 years and may extend the asset life by up to 25 years.
Page 4 of 27
Section 5
SERVICES & ORGANISATION COMMITTEE MEETING REPORT 06 APRIL 2021
b. Footpath standards
Council constructs footpaths across the shire in varying terrain. In places of steep and challenging
terrain it is common that not all paths meet full accessibility standards. The Park Road temporary
path is an example where full accessibility was not achieved due to overriding objectives of
preserving the natural environment and minimising cost whilst providing necessary public access.
Australian Standards AS2156 – Class 3 Track allows organisations such as Council to meet a
standard for design and construction yet recognises challenges of terrain and environment.
Elements of the Park Road temporary path that highlight the difference between a fully accessible
path and that of AS2156 Class 3 Track include use of stairs, slopes exceeding 1 in 14 and the
absence of pram ramps.
It is not intended that the temporary path be a major facility and that the environment be protected.
Given this, it is proposed the above design elements are not upgraded beyond AS2156 Class 3
Track standard.
2. The relevance of the temporary path to the local footpath network
In considering the wider footpath network, information was sought from the draft Noosa Council
Walking and Cycling Strategy. Whilst the strategy is in draft, this section of Park Road is classified
as a pedestrian recreation corridor and a principal recreational cycle route. Based on the draft
network design standards for a pedestrian recreation corridor where customer requests have been
received to retain the path and where there are reduced safety crossing points to the path on the
northern side, it is considered that a path is required on both sides. This assessment supports the
recommendation to retain the temporary path.
3. Additional relevant information – unapproved works in road reserve
Unapproved works have been identified in the road reserve beside the private property at 60 Park
Road. This is the same section of road reserve where Council has constructed the temporary path
considered by this report. Council are in receipt of complaints seeking removal of the unapproved
works within public road reserve. As a result, a number of areas of Council including Parks,
Development Assessment and Local Laws are currently in consultation regarding the unapproved
works.
Previous Council Consideration
Ordinary Meeting 15 October 2020, Item 4, Page 12
That Council note the report by the Project Manager - Transport Innovation to the Services &
Organisation Committee Meeting dated 6 October 2020 and defer consideration of the matter until
the November round of meetings to seek further information from the Design Team.
Finance
As per the 15 October 2020 report, the recommended option of upgrading the temporary path is
quoted at a cost of $103,000. These costs exclude project staff attendance which is estimated at
approximately $2,000.
It is acknowledged that Council is currently delivering a significant capital works program, with
further significant programs of work proposed for at least the next 2 financial years in Council’s
draft 10 year capital works plan. As such it is proposed that this non urgent project be referred to
a future budget review to determine if funding can be made available from other project savings or
existing program timing.
Page 5 of 27
Section 6
SERVICES & ORGANISATION COMMITTEE MEETING REPORT 06 APRIL 2021
Risks & Opportunities
The recommended option risks and opportunities are detailed below:
Risks (Cons)
Cost, although lower cost compared to full removal.
Ongoing asset management.
Community concerns from adjacent property.
That funding is not sourced resulting in delays to carrying out works.
Delays to the works results in the existing path deteriorating.
Some localised areas may require removal and replacement over the next 25 years due to
impacts of trees adjacent the path.
Opportunities (Pros)
Provides broader local community access.
Alternative pedestrian access in event of maintenance activities on the new boardwalk.
Alternative pedestrian access in event of damage and repairs from storms.
Access for weed control within road reserve.
Protects concrete path to extend asset life.
More permanent handrail for safety and aesthetic.
Meets recognised path standard.
Allows asset to be used permanently with lower risk.
Consultation
External Consultation - Community & Stakeholder
Email correspondence with owner of 60 Park Road regarding the delay of the Council report due
to information being sought on the unapproved works.
Internal Consultation
Civil Operations
Development assessment
Local Laws
Design
Corporate Services
Departments/Sections Consulted:
Chief Executive Officer x Community Services x Corporate Services
Executive Officer x Director x Director
Executive Support Community Development Financial Services
Community Facilities ICT
Libraries & Galleries Procurement & Fleet
x Local Laws Property
Waste & Environmental Health Revenue Services
Executive Services x Environment & Sustainable Development x Infrastructure Services
Director Director x Director
Community Engagement Building & Plumbing Services Asset Management
Customer Service x Development Assessment Buildings and Facilities
Governance Economic Development x Civil Operations
People and Culture Environmental Services Disaster Management
Strategic Land Use Planning x Infrastructure Planning,
Design and Delivery
Page 6 of 27
Section 7
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
2 TENDERER FINANCIAL CAPACITY ASSESSMENT POLICY AND GUIDELINE
Author Director Corporate Services, Michael Shave
Corporate Services Department
Index ECM/ 69.05 - Corporate Services
Attachments 1. Financial Capacity Assessment Process Policy
2. Financial Capacity Assessment Process Policy Guideline
EXECUTIVE SUMMARY
Not applicable.
RECOMMENDATION
That Council note the report by the Director Corporate Services to the Services & Organisation
Committee Meeting dated 6 April 2021 and:
A. Adopt the Tenderer Financial Capacity Assessment Process Policy provided as Attachment 1
to the report;
B. Adopt the Tenderer Financial Capacity Assessment Process Policy Guideline provided as
Attachment 2 to the report; and
C. Note that where the policy and guideline is applied to specific future tenders, the potential
impacts on the number of tender submissions received will be monitored over the next 12-24
months to determine any compliance challenges particularly for small local contractors.
REPORT
Examples of recent insolvencies involving companies engaged by local governments to deliver
infrastructure projects has highlighted the need for the establishment of, and compliance with, a
process within Council to ensure appropriate financial capacity assessments and other relevant
checks occur as part of tender evaluations.
The policy and its associated guideline provided as attachments to this report outlines the process
by which financial capacity assessments are triggered, including the methodology to be employed
as part of the tender evaluation stage (including quantitative and qualitative information
requirements), as well as due diligence checks throughout the delivery stage of a project.
The policy outlines a number of guiding principles to inform the tenderer financial capacity
assessment process which have been summarised below:
1. Financial capacity assessments are only one measure used to mitigate contractor insolvency
risk.
2. The level of financial capacity assessment should be proportionate to the project risk.
3. Financial capacity assessments are based on historical financial performance, Council must
also be satisfied that the tenderer is likely to remain financially viable for the life of the proposed
contract.
4. A point in time assessment of viability can only screen out identified high risk tenderers, and is
not a substitute for sound project planning and contract management.
5. Tender documents should specify the required documentation from tenderers to enable
Council to undertake the financial capacity assessment.
6. Financial ratios can be calculated to assess a tenderer's profitability, liquidity and financial
stability. Other qualitative information can also be sourced and analysed to determine going
concern risk.
Page 7 of 27
Section 8
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
7. The adoption of a tenderer financial capacity assessment policy will not transfer any
responsibility or damages to Council should an insolvency event arise.
Compliance with the policy and guideline by Council officers will assist in ensuring that suppliers
engaged to deliver projects via a tender process are identified (based on available information) to
have the financial capacity to remain solvent and meet contractual obligations, including where
applicable payments to sub-contractors, throughout the duration of the contract period.
The requirement for tenderers to provide additional information as part of tender submissions will
place an additional administration requirement on those entities, and may possibly result in tender
responses not being provided (particularly small local contractors). The potential impacts on the
number of tender submissions received by category will be monitored over the next 12-24 months
to determine any potential compliance challenges - particularly for small local contractors.
Previous Council Consideration
Nil.
Finance
The application of the policy and guideline will result in additional costs where financial capacity
assessments are outsourced to experienced finance/economic consultants.
Risks & Opportunities
Risks
Reputation – Council risks reputational damage should potentially avoidable contracted company
insolvencies result in project delivery delays, additional costs and sub-contractor losses.
Financial – Insolvencies on Council projects result in legal and other potential costs associated with
retendering and delivering an impacted project.
Opportunities
The application of a financial capacity assessment policy and guideline for tenderers will assist in
minimising (but not eliminating) the likelihood of an insolvency on a Council project.
Consultation
External Consultation - Community & Stakeholder
Nil.
Internal Consultation
Executive Team
Procurement Manager
Infrastructure Planning, Design and Delivery Branch
Departments/Sections Consulted:
x Chief Executive Officer x Community Services x Corporate Services
Executive Officer x Director x Director
Executive Support Community Development x Financial Services
Community Facilities ICT
Libraries & Galleries x Procurement & Fleet
Local Laws Property
Waste & Environmental Health Revenue Services
x Executive Services Environment & Sustainable Development x Infrastructure Services
x Director Director Director
Community Engagement Building & Plumbing Services Asset Management
Customer Service Development Assessment Buildings and Facilities
x Governance Economic Development Civil Operations
People and Culture Environmental Services Disaster Management
Strategic Land Use Planning x Infrastructure Planning,
Design and Delivery
Page 8 of 27
Section 9
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
ATTACHMENT 1
Page 9 of 27
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
ATTACHMENT 1
MEN. Council Policy
L_@ | COUNCII TENDERER FINANCIAL
Corporate Plan Reference: Excellence as a Council
Endorsed by Council: <Insert Date of Ordinary Meeting >
Policy Author: Director Corporste Services
O
POLICY BACKGROUND
Council is committed to ensuring thst suppliers engaged to deliver projects via a tender process
have the financis!l capacity to remain solvent and meet contractual obligations, including where
applicable payments to sub-contractors, throughout the duration of the contract period.
Examples of building industry insolvencies have highlighted the need for the establishment of, and
compliance with, & process within Council to ensure appropriate financial capacity assessments and
other relevant checks occur ss part of tender evaluations. This will ensure that risk mitigation occurs
to avoid any financial and reputstions! impairment that eventustes as a result of the financial failure
of a Council contracted supplier.
This policy and its associated guideline will outline the process by which financial capacity
assessments are triggered, including the methodology to be employed as part of the tender
evaluation stage (including quantitative and qualitstive information requirements), as well as due
diligence checks throughout the delivery stage of a project.
COUNCIL POLICY
Guiding Principles
1. Financial capacity assessments are one of a range of measures designed to reduce contractor
insolvency nsk [email protected]. The requirements for 4 financial capacity sssessment should be considered when planning &
tender. The process for the assessment of financial capacity should be proportionate to the risk
of the project.
3. While the information provided for financial capacity sssessments is based on historical financial
performance, which can only give current or short term future likelihoods based on current known
issues and situations, Council must be satisfied that based on that information the tenderer is
likely to remain financially viable for the life of the proposed contract.
4. A tenderer's financial capacity can rapidly deteriorate or improve with changes to the economic
and operating environment. As such it should be recognised that 8 point in time assessment of
viability can only screen out high risk tenderers, and is not a substitute for sound project planning
and contract management
5. Atender process will include 8 mechanism to assess a tenderer's financial capacity to complete
& project and allow the exclusion of tenderers that are considered an unacceptable risk of
Page 1
Page 9 of 27Section 10
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
Page 10 of 27
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
ORGANISATIONAL POLICY - PROCUREMENT FINANCIAL CAPACITY ASSESSMENT PROCESS
insolvency. The tender documentation should also specify the documents to be provided by
tenderers to enable Council to undertake the financial capacity assessment.
6. Finsncial ststements can be analysed to provide insight into s tenderer's financial stability. A
range of financial ratios can be used to assess a tenderer's profitability, liquidity and financial
stability. Other qualitative information can also be sourced and analysed to determine going
concern risk (including director and company credit checks).
7. Contractors have legal requirements to trade whilst solvent. This policy and its contents will not
transfer any responsibility or damages to Council should an insolvency event arise for a supplier
whilst contractually engaged with Council.
Tender Financial Capacity Assessment
To ensure efficiency is maximised snd costs minimised a risk based approach will be applied to
determine when tenderer financial sssessments are required. This spproach will include the
application of project categories and financial thresholds to determine if an assessment process will
be triggered in s tendered amount. The Tenderer Financial Capacity Assessment Process Policy
Guideline will include the relevant project categories and financial thresholds for reference.
lf the category financial threshold is triggered by © tendered value a shortlisted tenderer will be
required to provide the appropriate information to allow & financial capacity assessment to occur.
In Some specific instances the application of the category financial threshold may not be considered
appropriate or achieve the desired outcome. In these instances the Director Corporate Services will
be consulted and will approve any specific exceptions.
Information Requirements
Procurement tender documentation, in accordance with Council's procurement process conditions,
will clearly specify that if shortlisted, 8 tenderer agrees to provide documentation that is required to
undertake a financial capacity assessment.
Where tenderers are identified ss having a short financial history [i.e. less than 2 financial years).
limited financial! information will be available which could reduce the ability to undertake = robust
financial capacity assessment. In these situations the Tenderer Financial Capacity Assessment
Process Policy Guideline will outline the alternative information to be requested to undertake the
assessment and manage risk.
Should the requested information not be provided by s tenderer or be incomplete, the tender
submission may be deemed non-conforming and the tender may not be considered further.
Assessment Method
Specific criteria and indicators (as identified in the Tenderer Financial Capacity Assessment Process
Policy Guideline) will be assessed with support from Corporste Services as part of the financial
capacity sssessment.
lf required, additions! assessment information may be required which may involve discussions with
the preferred tenderer directors, financial advisers, bankers or 8 parent company (if applicable}. This
may provide additions! informstion to sallow consideration regarding the management of financial
capacity nsk and the final scoring outcomes.
An overall score per tenderer will be calculated by Corporate Services utilising the methodology
contained in Tenderer Financial Capacity Assessment Policy Guideline. An overall score per
Page 2
Page 10 of 27Section 11
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
Page 11 of 27
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
ORGANISATIONAL POLICY - PROCUREMENT FINANCIAL CAPACITY ASSES 3MENT PROCESS
tenderer will be provided to the tender evaluation panel for inclusion ss part of the financial capability
weighting included in the overall tenderer scoring assessment.
Project Delivery
During the project delivery stage of & contract appropriate consideration will be given to measures
required to effectively manage risk where contractors sre engaging sub-contractors. This may
include the verification of statutory declarations made by contractors relating to payments made to
sub-contractors, and / or the establishment of project trust bank accounts for higher value projects.
These messures will be considered on 8 case by case basis and agreed in advance of project
commencement between Corporate Services and the relevant project manager.
ROLES AND RESPONSIBILITIES
The Financial Services branch will provide support in undertaking / overseeing financial capacity
assessments and providing final financial capability scores to the tender evaluation panel.
The Director Corporate Services will assess the draft financial capacity assessment and endorse
the provision of final scoring to the tender evaluation panel.
The CEO and Directors sre responsible for ensuring compliance with this policy and ensuring
accurate and reliable information is provided to Council for effective decision making.
The Procurement branch will ensure thst sppropriste information is included in tender
documentation to allow Council (or 4 third party engaged by Council) to undertake financial capacity
assessments. Additionally, the Procurement Branch will provide advice in regards to how the
outcomes of the financial assessment are considered as part of the overall tender evaluation and
reported to Council for tender sward.
Project managers will undertake the mecessary due diligence checks throughout the delivery of 6
project (particularly where sub-contractors are engaged) to monitor and manage any emergent
financial capacity risk.
RELEVANT LEGISLATION
Financia! Sustainability Policy
Local Government Act 2009
Local Government Regulation 2012
Vercion control
Vercion Rescon/ Trigger Change (Yi) Endorsed! Reviewed by Oste
Page 3
Page 11 of 27Section 12
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
Attachment 2
Page 12 of 27
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
Attachment 2
| @ NOOSA Policy Guideline
_( p | COUNCIL TENDERER FINANCIAL
Corporate Plan Reference: Excellence as a Council
Guideline Owner and Department: Director Corporste Services
C
GUIDELINE BACKGROUND
The Tenderer Financial Capacity Assessment Guideline is a supporting document for the Tenderer
Financial Capecity Assessment Process Policy and details the triggers to determine if a financial
capacity assessment is required, and the assessment process to be followed once 8 specific
assessment type is triggered.
ORGANISATION GUIDELINE
Tender Financial Assessment
Assessment Thresholds
Financia! thresholds for triggering an assessment will differ based on the relevant category of project
which reflects the perceived risk associated with each category.
Threshold
Capital Contracts - Busdings > $500,000
Capital Contracts - Other > $1,000,000
Capital and Operational Contracts - ICT > $500,000
Operational Contracts - Other > $1,000,000
lf the category threshold is triggered by the estimsted contract value (based on budget) a tenderer
will be required to provide the appropriate information és part of s tender response to allow a financial
capacity / qoing concem assessment to occur.
information Requirements
Procurement tender documentstion will clearly specify the information s tenderer must provide to
undertake a financial capacity assessment. The following documentation will be requested:
Previous 4 years Audited Financial Statements including notes*
Previous 4 years Audit Opinions™
Current Bank Statements to Assess Liquidity
Solicitors Representation Letter
Details of Executive Indust (perience
Details of Corporate Indust (perience
Details of Staffing Levels and Turnover Rate for Previous 3 Years
* Anvnimum of 2 years required to undertake a valki assessment
“If not included in with the Financlal Statements
Page 1
Page 12 of 27Section 13
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
Page 13 of 27
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
POLICY GUIDELINE - TENDERER FINANCIAL CAPACITY A&S SE 8 SMENT
Where tenderers are identified as having a short financial history (i.e. less than 2 financial years).
limited financial informstion will be available which would reduce the ability to undertake @ robust
financial capacity / going concern assessment. In this instance, preferred tenderers will be required
to provide the following information for analysis:
Available Audited Financial Statements
Available Audit Opinions*
Bank Statements to Assess Current Liquidity
Any Parent Company or Investor Guarantee’s
Financial Statements of Parent Company / Investor
Solicitors Representation Letter
Organisation Structure including Staffing Numbers
Details of Corporate and Executive Industry Experience
* f not induced with the Financia! Statements
Should the requested informstion not be provided or be considered incomplete, the tender
submission may be deemed non-conforming and, if so the tender may not be considered further.
Assessment Method
The following criteria and indicators will be assessed with support from Corporate Services as part
of the financial capacity assessment.
| Quantitative Criteria sf Indicators,
Financial Sustainability Revenue
Revenue Growth
Earnings Before Interest and Tax (EBIT}
EBIT Growth
Profit Margin
Dividend Payout Ratio
Sustainable Growth
Asset Turnover
Working Capital / Liquidity Working Capital Ratio
Net Debt to Equity
Interest Cover
Qualitative Criteria jindicators CCCs
Credit Review Credit Appraisal
Failure Risk
Late Payment Risk
Court Actions
Other (information to support Solicitors Representation Letter
credit review assessment) Staffing levels
Details of Corporate and Executive Industry
Experience
An overall score will be calculated by Corporate Services utilising the following methodology.
Criteria / Indicator | C*Cfinition |S Tarmet | Weighting
Financial Evaluation (50% of Total)
Profitability/Sustainability| ss C“‘(RNCSS (36.36% |
value
4.55%
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Page 13 of 27Section 14
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
Page 14 of 27
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
POLICY GUIDELINE - TENDERER FINANCIAL CAPACITY AS BSE 8 SMENT
Criteria / Indicator | CO efinition |S Tarmet___| Weighting |
EBIT (earnings before Operating revenue less operating } posite | 4.55% |
interest and tax) expenditure exc. interest positive .aae
EBIT Growth Annual growth in EBIT 4.55%
Profit Margin EBIT divided by operating revenue 4.55%
Dividend Payout Ratio dividends <= 100% 4.55%
Sustainable Growth Retained earnings divided by equity 4.55%
Working CapitaliLiquidity | id,
Working Capital Ratio Current assets divided by current 2415 4.55%
liabilities
Net Debt to Equity Debt | less cash holdings, divided by 4.55%
EBIT divided by interest expense 4.55%
Credit Review (30% of Total)
ProfitabilityiSustainability| | 50.00%
Level of risk for the company as
Credit Appraisal assessed by a credit risk assessment 17.50%
agency
Relative credit risk based on financial
. Relative risk based on late account
the entity
The calculsted overall scores per tenderer will be provided to the tender evalustion panel for
inclusion 35 part of the financial capability weighting included im the overall tenderer scoring
assessment
ROLES AND RESPONSIBILITIES
The Financial Services branch will provide support in undertaking financial capacity assessments
and making sppropriste recommendations.
The Director Corporate Services will oversee the financial capacity assessment process.
The CEO and Directors sre responsible for ensuring compliance with this policy and ensuring
accurste and reliable information is provided to Council for effective decision making.
The Procurement branch will ensure thst sppropriste information is imcluded in tender
documentation to sllow Council (or 8 third party engaged by Council) to undertake financial capacity
assessments. Additionally, the Procurement Branch will provide sdvice in regards to how the
outcomes of the financial sssessment is included as part of the overall tender evaluation.
Project managers will undertake the necessary due diligence checks throughout the delivery of 6
project (particularly where sub-contractors sre engaged) to manage any unforeseen financial
capacity risk that may eventuate.
Page 3
Page 14 of 27Section 15
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
Page 15 of 27
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
POLICY GUBDELINE - TENDERER FINANCIAL CAPACITY ASSESSMENT
RELEVANT LEGISLATION
Financia! Sustainability Policy
Local Government Act 2009
Loca! Government Regulation 20172
Building Industry Faimess (Security of Payment) Act 2017
Indicators and Definitions
[Criteria&Indicator | Definition
Revenue Company revenue is expected at 5 times the project value
to demonstrate company size and capacity to manage
multiple projects.
Revenue Growth Positive annual growth is expected im core operational
revenues.
EBIT (Performance and Growth) EBIT is defined as operating revenue less operating
expenditure, excluding interest and taxation (i.e. net profit
before income tax plus gross interest expense). Positive
EBIT performance and growth is expected.
Profit Margin (Profitability %) The operating sales margin identifies the extent to which
sales are translated into profits. The higher the ratio, the
more efficient the company is in turning sales into profits.
The operating sales margin is determined by dividing EBIT
by sales revenue. A minimum operating sales margin of
5% should be expected.
Dividend Payout Ratio The dividend payout ratio reflects the proportion of after-
tax profits paid out in dividends. The higher the ratio, the
more profits are paid a5 dividends to shareholders rather
than held as retained earnings within the company.
Sustainable Growth The sustainable growth rate is a measure of how much a
company can grow its revenue without requiring access to
additional funds (Le. via reductions im cash holdings,
additional debt, additional equity raising, improved
profitability or reduced dividend payout ratio), and is
calculated as the extent of retained income divided by
opening equity.
Asset Turnover Asset turnover compares the ratio of revenue to total net
assets (i.e. the extent of capital tied up in the operational
balance sheet). As the asset turnover ratio increases,
capital is freed up to grow the business, reduce debt or
increase returns to shareholders. A consistently low or
reducing asset turnover ratio could be a reflection of such
things as poor asset management policies, deciining cash
flows or declining sales.
Working Capital Ratio The working capital ratio indicates whether a company has
enough short-term assets to cover its short-term debt.
Anything below 1 indicates negative working capital, while
3 score between 1 and 2 is considered efficient.
Net Debt to Equity Ratio The net debt to equity ratio identifies a company’s reliance
on debt as 3 means of financing, and is defined as net
debt divided by total equity.
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Page 15 of 27Section 16
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
Page 16 of 27
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
POLICY GUIDELINE - TENDERER FINANCIAL CAPACITY ASSESSMENT
Interest Cover Interest cover is defined as EBIT divided by interest
expense, and measures the coverage of debt servicing
costs by profits. The higher the ratio, the better the
company is positioned in meeting its ongoing interest
payments.
PCREDIT REVIEW
Credit Appraisal This is the assessed level of credit isk attached to the
company, as provided by an appropriate extemal agency
(e.g. illion, Dun & Bradstreet).
Failure Risk This is the assessed relative level of risk attached to the
company based on distress probability, as provided by an
appropriate external agency (e.g. illion, Dun & Bradstreet).
Late Payment Risk This is the assessed relative level of risk attached to the
company in regards to late payment probability, as
provided by an appropriate external agency (e.¢. illion,
Dun & Bradstreet).
against the company and/or its directors.
executive level of the company.
company.
Staffing Levels Observed appropriate levels of staffing within the company
to satisfactorily undertake the services required under the
contract.
POTHER
Letters the company.
Version control:
Version Reason/ Trigger Change (Y/N) Endorsed/ Reviewed by Date
1.0 Create new DOMMYYY
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Page 16 of 27Section 17
SERVICES & ORGANISATION COMMITTEE MEETING AGENDA 6 APRIL 2021
6 REPORTS FOR NOTING BY THE COMMITTEE
3 WASTE MANAGEMENT - 6 MONTHLY REPORT JULY TO DECEMBER 2020
Author Waste Coordinator, Ian Florence
Community Services Department
Index ECM/ Branch Management – Community Services
Attachments Nil
EXECUTIVE SUMMARY
Not applicable.
RECOMMENDATION
That Council note the report by the Waste Coordinator to the Services and Organisation Committee
Meeting 6 April 2021, providing an update on the activities of the Waste section for July - December
2020/21.
REPORT
The purpose of this report is to advise Council of waste management activities over the first six
months of the 2020/21 financial year. The Waste section is responsible for:
development and implementation of waste management strategies;
delivery of waste, garden and recycling collection services for Noosa residents and
businesses;
holding tank collection services;
operation of the Eumundi Rd Landfill and Resource Recovery Facility;
operation of Pomona and Cooroy Waste Transfer Stations;
waste education.
1. FINANCE
Under National Competition Policy, the Waste Business Unit is required to operate under full cost
pricing principles and to make a return on the investment in the business to Council.
Waste Management July – December 2020
2020-21 2020-21 2020-21 %
Statement of Income and Expenses Current YTD YTD Current YTD
Budget Budget Actuals Budget Variance
Total Revenue 17,230,421 8,510,882 9,202,195 53.4% 691,313
Total Expenditure 14,481,321 7,114,910 7,140,679 49.3% (25,769)
Net Result - Surplus/(Deficit) 2,749,099 1,395,972 2,061,516 665,543
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2020-21 2020-21 2020-21 %
Statement of Income and Expenses Current YTD YTD Current YTD
Budget Budget Actuals Budget Variance
Total Revenue 17,230,421 8,510,882 9,202,195 53.4% 691,313
Direct Costs (Controllable)
Employee Benefits 931,511 464,547 452,470 48.6% 12,078
Finance Costs 206,100 103,050 103,121 50.0% (71)
Materials & Services 9,795,130 4,773,023 4,812,651 49.1% (39,629)
Other Expenses 328 164 529 161.3% (365)
Subtotal Direct Costs (Controllable) 10,933,069 5,340,784 5,368,771 49.1% (27,988)
Operating Surplus/Deficit 6,297,351 3,170,098 3,833,423 719,300
Indirect Costs (Corporate)
Depreciation & Amortization 805,772 402,886 402,886 50.0% 0
Internal Charges 1,664,996 832,498 830,280 49.9% 2,218
Competitive Neutrality 1,077,484 538,742 538,742 50.0% 0
Subtotal Indirect Costs (Corporate) 3,548,252 1,774,126 1,771,908 49.9% 2,218
Net Result - Surplus/(Deficit) 2,749,099 1,395,972 2,061,516 665,543
Waste Management - FY20/21 YTD Decemeber 2020
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
Total Revenue Total Expenditure Net Result - Surplus/(Deficit)
2020-21 2020-21
YTD YTD
Budget Actuals
Budget Commentary
For the six-month period to December 2020 the Waste Management Team delivered an operating
surplus of $2,061,516 which is $665,543 favourable to budget. Revenues were above budget
$691,313 due to higher:
rates revenues of $398,417 due to conservative budget modelling:
landfill fees of $215,352 due to higher volumes: and
temporary waste services of $74,519.
Expenses year-to-date are in line with budget.
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2. CAPITAL WORKS
Council’s consulting engineering firm, ATC Williams, has been engaged to provide a masterplan to
guide the development of the Eumundi Rd site and this has informed the 10-year waste capital works
program. Key projects to deliver the master plan include:
Update and implementation of the stormwater management plan;
Upgrade and installation of a new outbound weighbridge and gatehouse to improve safety and
prevent queuing of traffic on Eumundi-Noosa Road;
Expansion of cells 1.1 and 2.2 at the southern end of site to utilise unused areas and maximise
the life of the landfill;
Final capping of cell 1.1 to meet state and environmental legal obligations, reduce the potential
of contamination of groundwater and surrounding waterways, reduce the production of
leachate to be managed onsite and ensure maximum efficiency of methane capture to reduce
emissions in alignment with Councils ZEN target;
Design of cells 2.3 and 2.4 in preparation for waste disposal when current cells are full;
Potential expansion of the resource recovery area to adhere to safety obligations and increase
the recovery of materials therefore reducing waste sent to landfill in alignment with national
targets
Sealing of the staff carpark to reduce dust impacts and prevent dirty water runoff into adjacent
waterways.
Additional to this, a new waste disposal area is being constructed in the Noosa Woods to facilitate
the servicing of Hastings Street and reduce impacts on residents and visitors to the area.
3. CUSTOMERS
Service Requests for Waste – Total 2,684
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The service request process for the Waste Section received a significant upgrade during the period
with many requests now being generated online. The change was part of the ongoing implementation
of improved services from Council’s ICT provider. The change in the service request process initially
brought with it some challenges related to automation of requests and a timely follow up with
customers. This led to a few customer complaints and an additional workload on the Waste Section
that needed to be addressed over this period. Waste staff are currently working though solutions that
will ultimately lead to a more streamlined and efficient system for customers.
Collection Services
Waste bins collected weekly
Recycling and Green Waste bins collected fortnightly
Type of bin service 31-Dec-2018 31-Dec-2019 31-Dec-2020
Refuse bins
140ltr 126 237 237
240ltr 30,284 30,328 29,834
360ltr 176 414 503
1100ltr 373 386 354
Recycling bins
240ltr 25,510 25,715 25,560
360ltr 295 376 495
1100ltr 332 250 258
Green Garden bins
240ltr 14,727 14,842 15,024
360ltr 689 854 1050
1100ltr 0 5 14
Bulk Refuse bins
1 cubic metre 23 22 34
1.5 cubic metre 199 198 173
2 cubic metre 24 26 25
3 cubic metre 230 216 226
Compactor bins 2 2 2
Cardboard only bins
1100 litre 0 87 88.5
3 cubic metre 0 5 9.5
4.5 cubic metre 0 1 1
The drop in bin numbers for latest period is due to reduced service levels during the Covid pandemic.
Customers using Council’s three waste sites
Transactions Eumundi Road Cooroy Pomona
Six monthly average 2014-19 55,588 2,459 2,723
July - December 2020 73,187 3,455 3,136
This illustrates the additional number of customers using the site over the reporting period.
Transactions have been growing year on year, however the latest reporting period showed a
significant spike. This is attributed to additional domestic users during the Covid period.
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Material Received at Eumundi Road Resource Recovery Centre and Landfill
The above chart illustrates the amount of waste received at the facility and the amount that goes to
landfill. The chart above, which incorporates the reporting period, does not show any particular trend.
The period was dominated by the Covid pandemic and therefore it is impossible to reliably compare
the data against previous years. Trends in waste prior to Covid show that Noosa Council is
consistently recycling more waste material each year, however amounts of waste entering the facility
are also consistently increasing.
Diversion rates for material entering the Eumundi Road Facility: July – December 2020.
Type of waste On-site diversion rate Qld Govt diversion from
landfill targets - 2025
Municipal Solid Waste 22%* 55%
Commercial & Industrial 48%* 65%
Construction and Demolition 99% 75%
Total 45% 65%
*This figure does not include yellow top bin recyclables which go directly offsite to a recovery facility.
Resource Recovery – Material recovered in tonnes (major categories)
Type of material July – Dec 2019 July – Dec 2020
Recyclables (yellow top bins) 3,682.68 3,048.86
Garden 7,550.32 8,633.22
Concrete 2,945.72 6,641.14
Metal 1,359.04 1,382.26
Timber 568.80 744.00
Cardboard 237.40 264.74
Batteries 15.56 9.57
E-Waste 61.50 33.28
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WASTE EDUCATION
The waste education program was significantly impacted by Covid-19 however staff continued to
deliver waste reduction and recycling programs through available mediums.
Schools program
Recycling and waste education talks and workshops have been given to eight different schools and
kindergartens in the Noosa Shire from July 2020 - December 2020.
The ‘Ed Shed’ Waste education building was officially opened in November 2020 by Councillors
Wilkie and Jurisevic. This has improved our ability to offer a professional and engaging education
program.
Breakdown of Waste Education Initiatives
School talks and landfill visits Recycling and waste education talks, workshops and visits
to The Ed Shed have been given to eight different schools
and kindies in the Noosa Shire.
Recycling and waste education talks and Engaged with over 860 students and members of the
workshops community.
The Men’s Shed Worked with the Men’s Shed to create an interactive
conveyer belt the students could use at the Ed Shed made
out of 100% recycled material.
Fit out of the education building “The Ed Councillors Frank Wilkie and Joe Jurisevic officially opened
Shed” at the landfill and Official opening Nov the “The Ed Shed” with 3 grade 1 students from Tewantin
2020 Primary School
Facebook posts Weekly “Waste Free Friday” - 33 Facebook posts, reaching
over 110,252 people. Campaigns included Plastic Free
July, Waste Free Friday, National Recycling Week (NRW),
soft plastic and reducing waste over Christmas.
Plastic Free July Weekly Facebook posts on ways to reduce plastic usage.
National Recycling week November 2020 Due to Covid this year we ran two composting workshops,
at The Veggie Village at Peregian Beach and the
Community Permaculture Gardens at Cooroy these were
both booked out with 25 people at each workshop.
Composting trial with Monty Sep 2020 Trialling “Monty” an innovative composting probe that has
sensors to measure moisture, oxygen and carbon levels in
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a compost bin, Monty messages saying if the compost
needs more carbon, water or turning. We are trialling
“Monty” with the Veggie Village, Cooroy Permaculture
Community gardens and two schools Pomona and Kin Kin
Primary. Composting workshops were given to the groups
and schools prior to the trial beginning.
New recycling and waste stickers New recycling and waste stickers on all waste and
recycling bins in Noosa
Bin covers at events Bin covers were still used at the events that occurred
during Covid, e.g. Noosa Car Show,
Composting workshop at the Veggie Village
4. ENVIRONMENTAL
Landfill Gas Volumes by Month Jul 2020 – December 2020
Monthly Volume of Landfill Gas
Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20
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Waste to Landfill vs Estimated Emissions
Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20
Emissions (T CO2e) Waste to Landfill (T)
*Methane tonnages cannot be specified due to confidentiality requirements from Council’s contractor.
Council officers worked with Cleanaway and the landfill gas contractor (LMS) to ensure interim
landform was reached at cell 2.2 allowing for the installation of the ring main and additional vertical
wells in early 2021.
Quarterly onsite meetings between Council officers, LMS and Council’s ZEN representatives have
continued. Current trends in gas volume, operational status of wells, future plans for the gas network
and heat mapping areas of landfill with good/poor gas capture are analysed to direct increased future
volume of methane capture. As a result in March 2021 an additional 11 gas wells were installed. It
is anticipated that this will significantly increase landfill gas capture.
Environmental Compliance
A total of 661mm of rainfall was recorded at the Landfill throughout the reporting period. No major
environmental incidents occurred as a result of the wet weather events and no releases of nutrients
or leachate were observed.
Jul - Dec 2020 Total Rainfall (mm)
300
250
200
150
100
50
0
Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20
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The following notifications were made to the Department of Environment and Science in the reporting
period:
Date Incident Actions/Comments
14 October Total Suspended Visual inspections were undertaken to assess whether any
2020 Solids Compliance signs of environmental harm were present. The Department
Limit exceedance of Environment and Science was notified. No further action
following 80mm of was required and this matter was closed without any
intense rainfall enforcement action.
30 November Total Suspended Visual inspections were undertaken post rainfall event to
2020 Solids Compliance assess whether any sediment deposits on vegetation and/or
Limit exceedance signs of environmental harm were present. Drains were
following 118mm of cleaned of accumulated sediment and the fore-bay of the
rainfall over 4 days High Efficiency Sediment basin was cleaned out. The
Department of Environment and Science was notified. No
further action was required and this matter was closed
without any enforcement action.
No actual or potential environmental harm from landfilling operations was recorded during the
reporting period. Internal monthly environmental inspections continue to be conducted by Council’s
Environment Officer.
Environmental works within the upcoming 6 months include:
Installation of the ring main on cell 2.2 and additional vertical wells for methane collection
(completed).
Design and installation of the new stormwater management plan and associated
environmental surveys and impact assessments.
Lake MacDonald offsets review and management assessment.
Revision of the site Environmental Management Plan in conjunction with Cleanaway.
Application for an amendment to the environmental authority for a second discharge location
and associated works.
Collaboration with Sunshine Coast University and the University of Georgia in regard to
potential new technologies for leachate and waste management strategies.
A review and ongoing monitoring in accordance with the Receiving Environment Monitoring
Program.
Illegal dumping
Waste officers issued 17 Penalty Infringement Notices (PINS) totalling $15,131 for dumping
offences. Twelve of these PINS were for volumes of under 240 litres and five PINS were for
volumes above 240 litres, but below 2500 litres.
The camera surveillance program has continued at known hotspots and opportunistic dumping
spots. Waste Section applied for and was successful in obtaining a grant of $50,000 for
improved illegal dumping surveillance. This grant program has funded additional surveillance
cameras and an elevated work platform for camera placement.
5. PEOPLE
The Manager of Waste and Environmental Health retired in December 2020 and a new
Manager will be recruited in 2021.
The Waste Section gained approval to expand the Environmental Officer position from a
0.5FTE to permanent full time.
6. FUTURE PLANNING AND A LONG TERM STRATEGY FOR WASTE
The last few years has seen the Waste Section face and overcome some significant challenges.
These include:
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Maintaining a critical community and public health service to every member of the Noosa
Community during the global Covid pandemic. This was achieved with no loss in service
delivery or standard, at a time when waste sites were busier than ever before as many
residents used the lockdown as an opportunity to have a clean out and dispose of unwanted
items. The waste team continued to work in close partnership with our contractor Cleanaway
throughout this period and acknowledge their critical role and continuing standard of service in
spite of the pandemic.
The implementation of a mandated garden waste collection service throughout the Shire.
Noosa is currently the first and only Council in Queensland to have taken this important step
in waste reduction.
The implementation of the Queensland Government Waste Levy. There has been significant
additional administration involved in accounting for the waste streams, maintaining
transactions, collecting the levy fees and reporting to the Queensland Government. This work
been absorbed within the small Waste team. The Waste Section currently collects and
redistributes well over 3 million dollars in levy revenue each year.
The landfill is Council’s biggest emitter of greenhouse gases. ZEN targets set by Noosa
Council present major challenges and opportunities for the Waste Section to reduce organic
waste to landfill and optimise methane capture from waste already deposited over recent
decades.
The long term Manager of the Waste Section (43 years) retired in late 2020.
Long Term Strategy
The Waste Section is in the process of drafting a long-term strategy for waste management in Noosa.
This is being done in collaboration with one of Australia’s leading consultants in the waste field, Mike
Ritchie and Associates. Over the next six months the following work will be completed:
Two Council workshops and a detailed options report on the future delivery of bulk waste
‘Kerbside’ collection will be provided for Council consideration.
The community and key stakeholders will be engaged and consulted with during the production
of a draft strategy to manage waste in Noosa over the next 10-20 years. The strategy will
consider:
o The circular economy and optimising waste reduction and recycling.
o Meeting Council’s ZEN targets
o Future collection service options
o Organic waste collection and processing
o Optimising the Eumundi Road facility to become a regional resource recovery hub
o Waste education and behaviour change within the community
Workshops will be conducted with Councillor and key staff on the waste strategy and the
outcomes of the community engagement
The finalised strategy will be presented to Council for consideration and endorsement.
Previous Council Consideration
The Waste Section generally provides a six monthly update report to Council on the activities of the
Waste Section.
Risks & Opportunities
The Waste sector is currently facing significant challenges and the need for change, brought about
by:
Bans on exporting waste overseas
Increased focus on waste management from the public
State and federal government waste reduction and recycling targets
Emission reduction targets set locally and internationally
Escalating landfill levies
Reduction in available landfill space
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In Queensland, Noosa Council is already leading the way on meeting these challenges and now has
the opportunity to continue to forge ahead. The forthcoming strategy development is critical in this
process.
Consultation
External Consultation - Community & Stakeholder
Primary stakeholders over the six-month period have included:
Cleanaway
Unitywater
LMS
Moreton Bay Regional Council
Sunshine Coast Regional Council
Wide Bay Burnett Regional Organisation of Councils (WBBROC)
Queensland Government - Department of Environment and Science
Noosa Biosphere Foundation
Hastings Street Association
Tourism Noosa
Internal Consultation
Departments/Sections Consulted:
Chief Executive Officer X Community Services X Corporate Services
Executive Officer X Director Director
Executive Support Community Development X Financial Services
Community Facilities ICT
Libraries & Galleries Procurement & Fleet
Local Laws Property
X Waste & Environmental Health Revenue Services
Executive Services X Environment & Sustainable Development Infrastructure Services
Director Director Director
Community Engagement Building & Plumbing Services Asset Management
Customer Service Development Assessment Buildings and Facilities
Governance Economic Development Civil Operations
People and Culture X Environmental Services Disaster Management
Strategic Land Use Planning Infrastructure Planning,
Design and Delivery
7 CLOSED SESSION
Nil.
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