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                      AGENDA


        General Committee
            Meeting


                 Monday, 4 May 2015

                   commencing at 10am
        Council Chambers, 9 Pelican Street, Tewantin



Committee:   Crs Frank Wilkie (Chair), Bob Abbot, Sandy Bolton,
             Joe Jurisevic, Frank Pardon, Noel Playford, Tony Wellington
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2015-05-04 Attachment 1 to Item 1 General Committee Agenda - MCU14 0009 Referral Agency Response(PDF, 2MB).pdf · 1.6 MB (small file)

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Section 2

GENERAL COMMITTEE MEETING AGENDA                                                                     4 MAY 2015


TABLE OF CONTENTS

ITEM                                                                                                      PAGE

ATTENDANCE & APOLOGIES                                                                                         -

PRESENTATIONS                                                                                                  -

ITEMS REFERRED FROM INFRASTRUCTURE & SERVICES COMMITTEE                                                       2

11     POMONA COORAN RUGBY LEAGUE CLUB LIGHTS
       (Previously distributed in Infrastructure & Services Committee Agenda, Page 70)
       Reason for referral: Infrastructure & Services Committee disagree with recommendation.

12     FESTIVE SEASON EVENTS GRANTS POLICY
       (Previously distributed in Infrastructure & Services Committee Agenda, Page 74)
       Reason for referral: Infrastructure & Services Committee suggest a change to the policy wording.


ITEMS REFERRED FROM PLANNING & ORGANISATION COMMITTEE                                                         2

3      DEVELOPMENT APPLICATION FOR MATERIAL CHANGE OF USE FOR A
       MIXED USE DEVELOPMENT (SERVICE STATION, SHOP, FAST FOOD
       RESTAURANT, CAR WASH, SELF STORAGE FACILITY AND TOURIST PARK)
       AT 125 MYALL STREET COOROY MCU14/0056
       (Previously distributed in Planning & Organisation Committee Agenda, Page 8)
       Reason for referral: Significance of the issue.

4      MATERIAL CHANGE OF USE APPLICATION FOR AN INDUSTRIAL BUSINESS
       TYPE 2 (PRODUCTION, ALTERATION REPACKAGING & REPAIRING SITUATED
       AT 1 FACTORY ST POMONA MCU14/0009
       (Previously distributed in Planning & Organisation Committee Agenda, Page 38)
       Reason for referral: Cr Wellington requested a further report regarding Condition 22.

18     NOOSA BIOSPHERE RESERVE FUNDING ARRANGEMENTS - REVISED
       FUNDING DEED
       (Previously distributed in Planning & Organisation Committee Agenda, Page 147)
       Reason for referral: Cr Pardon requested the report be referred to the General Committee due to
       significance of issue.


REPORTS DIRECT TO GENERAL COMMITTEE                                                                           3
1      FURTHER REPORT - MATERIAL CHANGE OF USE APPLICATION FOR AN
       INDUSTRIAL BUSINESS TYPE 2 (PRODUCTION, ALTERATION, REPACKAGING
       & REPAIRING) SITUATED AT 1 FACTORY STREET POMONA - MCU14/0009                                           3
2      NOOSA WATERS - BUILDING ENFORCEMENT                                                                     8
3      CONTRACT 1415T008 - DAINTREE ESTATE FLOOD MITIGATION STAGE 2
       CONSTRUCTION                                                                                          10
4      UPDATE ON TOURISM AND PROPOSED FUNDING AGREEMENT WITH
       TOURISM NOOSA                                                                                         14

CLOSED SESSION                                                                                           -


                                                                                                    Page 2 of 18

Section 3

GENERAL COMMITTEE MEETING AGENDA                                                                           4 MAY 2015


REPORTS DIRECT TO GENERAL COMMITTEE


1                        FURTHER REPORT - MATERIAL CHANGE OF USE APPLICATION FOR AN
                         INDUSTRIAL BUSINESS TYPE 2 (PRODUCTION, ALTERATION, REPACKAGING &
                         REPAIRING) SITUATED AT 1 FACTORY STREET POMONA - MCU14/0009
DOCUMENT INFORM AT ION




Author                              Development Planner, Jack Lewis
                                    Planning & Infrastructure Department

Index                               ECM /Application / MCU14/0009

Attachments                         1.   Referral Agency Response & Conditions (full attachment provided separately)
                                    2.   Referral Agency Approval Plan


RECOMMENDATION
That Council note the report by the Development Planner to the Planning and Organisation
Committee dated 28 April 2015 and the further report to the General Committee Meeting dated 4
May 2015 regarding Application No. MCU14/0009 for a Development Permit for an Industrial
Business Type 2 (Production, alteration, repackaging & repairing) situated at 1 Factory Street,
Pomona and approve the application in accordance with the conditions contained in the Planning
and Organisation Agenda dated 28 April 2015.



REPORT
A report on a Material Change of Use application for an Industrial Business Type 2 (Production,
alteration, repackaging & repairing) was considered by the Planning & Organisation Committee
on 28 April 2015 and was subsequently referred to the General Committee Meeting. During the
course of discussions at the Planning & Organisation Committee, Councillors requested further
details on access to the site and traffic safety.

Traffic
The Department of Transport & Main Roads (TMR) is a concurrence agency for the application,
as the site has frontage to Factory and Hill Streets, which are both State Controlled Roads. The
State Assessment & Referral Agency (SARA) coordinates the responses from the various
government agencies and provided a response to the application on the 11 February 2015. The
response requires conditions be attached to the development permit and is included as
Attachments 1 & 2.

In summary, the concurrence agency conditions require the development to be carried out in
accordance with the following requirements:

                       Road access locations limited to the existing driveway along Factory Street and adjacent to
                         the northern lot boundary along Hill Street.
                       The road access location at Factory Street is restricted to an entry left-in and right-in
                         arrangement only.
                       Entry only signage and line markings on the Factory Street entry.
                       Entry/exit signage and line markings on the Hill Street entry.
                       Appropriate driveway widths to accommodate heavy vehicles.
                       A pedestrian footpath, verge and kerb and channelling along the entire frontage of the site
                         connecting to the existing adjoining footpaths.


                                                                                                          Page 3 of 18

Section 4

GENERAL COMMITTEE MEETING AGENDA                                                     4 MAY 2015


These conditions have been required by the concurrence agency to ensure the design of any
road access maintains the safety and efficiency of the state controlled road.

Council’s codes and polices also require the development to provide suitable frontage works and
safe access to the site. Conditions 22 – 24 & 30 of the recommendation address the necessary
improvement and/or modifications to the frontages. These conditions are consistent with the
concurrence agency response. The proposed conditions are outlined below:
      External Works
22.   The frontages to Factory and Hill Streets must be upgraded. The works must be
      undertaken in accordance with an Operational Works approval and must include in
      particular:
      a.   Construction of kerb and channeling (or other suitable surface drainage) and
           underground stormwater drainage to the development site only;
      b.   Widening and sealing of the existing road pavement where necessary;
      c.   Construction of a pedestrian footpath in accordance with the conditions of this
           Decision Notice;
      d.   Removal of any redundant property accesses and reinstatement of the kerb, footpath
           and verge area to match the balance of the site frontage, including the provision of
           topsoil and turf where the existing verge is grassed;
      e.   Removal of any existing private infrastructure (garden beds etc) located within the
           existing and proposed road reserve;
      f.   Truncation of the existing property boundary at the intersection of Factory Street and
           Hill Street. The extent of the truncation must be sufficient to provide for a minimum
           4m wide verge between the property boundary and the new kerb line; and
      g.   Installation of street lighting where necessary.
      This condition is imposed pursuant to s665 of the Sustainable Planning Act 2009 being
      non-trunk infrastructure.
      Site Access and Driveways
23.   A sealed access driveway must be provided from Factory and Hill Streets to all parking and
      maneuvering areas of the development. The works must be undertaken in accordance with
      an Operational Works approval and must include driveway crossovers generally in
      accordance with IPWEAQ standard drawing SEQ R-051 Type B.
24.   Approval from the Department of Transport and Main Roads for the final design of the site
      access, driveway and frontage works must be submitted in writing to Council prior to the
      issue of any Development Permit for Operational Works.
30.   A 2m wide concrete footpath shall be provided within the road verge for the entire length of
      the site’s frontages to Factory Street and Hill Street. The works must be undertaken in
      accordance with an Operational Works approval.
      This condition is imposed pursuant to s665 of the Sustainable Planning Act 2009 being
      non-trunk infrastructure.

The recommended conditions will significantly improve the existing road traffic situation and
provide a safe traffic environment for users of the development and the general public. No further
conditions are recommended.

Internal Consultation

The application was forwarded to the Coordinator Engineering Assessment.


                                                                                    Page 4 of 18

Section 5

GENERAL COMMITTEE MEETING AGENDA                                            4 MAY 2015


Departments/Sections Consulted:

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

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




                                                                            Page 5 of 18

Section 6

GENERAL COMMITTEE MEETING AGENDA      4 MAY 2015



                                   Attachment 1




                                     Page 6 of 18

GENERAL COMMITTEE MEETING AGENDA                                                           4 MAY 2015

                                                                                       Attachment 1

                                                                     nga  .
                                                                    cae “ay
                                                                    4 a
                                                                    Queensland
                                                                    Government
                                                                    Depor nent of
                                                                    Sate Development,
                                                                    Infrastructure and Planaing
              SARA reference: SDA-0214-008136
              Applicant reference: 52312
              Counc reference: MCU 14/0009
               11 February 2015
              Noosa Shire Council
              PO Box 141
               TEWANTIN QLD 4565
              Dear Jack Lewis
              Concurrence agency response—with conditions
               1 Factory Street - Pomona, Noosa Shire Council QLD 4568
              (Lot 20 SP194118)
              (Given under section 285 of the Sustainable Planning Act 2009)
              The referral agency maternal for the development application was received by the
               Department of State Development, Infrastructure and Planning under section 272 of the
               Sustainable Planning Act 2009 (the act) on 14 February 2014. The amended
               acknowledgement notice was received on 18 November 2014.
              Applicant details
              Applicant name:         Keith & Christina Rolton
              Applicant contact details: c/- Murray & Associates PO
                                      Box 246 NAMBOUR QLD
                                       4560
              Site details
              Street address:          1 Factory Street, Pomona
              Real property description: Lot 20 SP194118
              Local government area:  Noosa Shire Council
               Application details
              Proposed development:    Development Permit for Matenal Change of Use —
                                       Industrial business Type 2

               Paget                                                            SEC North Region
                                                                           Level 8, Mike Ahern Buliding
                                                                                  12 First Avenue
                                                                                   PO Box 1125
                                                                           MAROOCHYDORE GLD 4558

                                                                                           Page 6 of 18

Section 7

GENERAL COMMITTEE MEETING AGENDA   4 MAY 2015




                                                  Attachment 2




                                   Page 7 of 18

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                                                                                                                                        Page 7 of 18

Section 8

GENERAL COMMITTEE MEETING AGENDA                                                           4 MAY 2015



2                        NOOSA WATERS - BUILDING ENFORCEMENT
DOCUMENT INFORM AT ION




Author                           Building and Plumbing Services Officer, Rob Wibrow
                                 Planning & Infrastructure Department

Index                            ECM / Subject / Plumbing Management/Legislation / Noosa Waters
                                 Building Enforcement

Attachments                      Nil


EXECUTIVE SUMMARY
Not applicable.

RECOMMENDATION
That Council note the report by the Building and Plumbing Services Officer to the General
Committee Meeting dated 4 May 2015 concerning building matters within Noosa Waters Estate.


REPORT
The purpose of this report is to provide Council with a briefing on recent enforcement orders
issued against a premises within Noosa Waters estate.

Background
Over the past 6 months the Noosa Waters Residents Association (the Association) has been
pro-actively reviewing and informing Council of any new building work carried out within the canal
setback. The Association is concerned that property owners, landscapers, builders and the like
are often constructing building work within 4.5m of the revetment wall without first obtaining the
necessary development approvals. The building works of concern include cut, fill, retaining
structures and hard landscaping.
On 28 January 2015 Building and Plumbing Services received a complaint from the Association
regarding building work at 27 Shorehaven Drive. The property was inspected and it was
confirmed that cut, fill and retaining work had begun within the canal setback area without the
necessary development approval.
An Enforcement Notice was issued which required all assessable building work to cease until a
development approval authorised the work.
Appeal
Pacific BCQ on behalf of the owners lodged an appeal to the Building Development Dispute
Resolution Committees (BDDRC) against the issuing of the Enforcement Notice. The appellant
argued that the Noosa Plan provisions for Noosa Waters Estate do not have legal grounds to
apply. The BDDRC set a hearing date for 23 March 2015.
Council response
In response to this appeal, Building and Plumbing Services staff prepared a brief for the hearing
outlining the grounds for issuing the enforcement notice. This brief was also referred to Council’s
solicitor Wakefield Sykes for review, which provided confirmation of and support for Council’s
position.




                                                                                          Page 8 of 18

Section 9

GENERAL COMMITTEE MEETING AGENDA                                                  4 MAY 2015


Noosa Waters Association
Building and Plumbing Services extended an invitation to the Noosa Waters Residents
Association to also submit to the BDDRC prior to the hearing, which they did identifying their
concerns.
Consideration of the appeal
The BDDRC appeal hearing was held on site (27 Shorehaven Dr) on Monday 23 March 2015
with the BDDRC decision handed down on 20 April 2015. The BDDRC decision upheld the
Enforcement Notice issued by Council.
Building Certifiers Pacific BCQ have since advised that they will lodge the necessary
Development Application in accordance with the Enforcement Notice.
The successful outcome of this hearing means that Council staff are able to continue to uphold
the Noosa Waters Estate Provisions in the Planning Scheme to maintain the flood detention and
amenity functions of the estate.
Review of the Noosa Plan
During the course of this appeal and preparation of Council’s response, a number of anomalies
with the Noosa Plan, Noosa Waters Estate - Special Provisions have become apparent. Although
the anomalies did not affect the course or outcome of this appeal, a notation of them was made
and brought to the attention of Strategic Land Use Planning for consideration as part of the
review of the Noosa Planning Scheme.
Finance & Risk
Nil
Consultation
Internal Consultation
Development Approval Planning
Strategic Planning
External Consultation
      Wakefield Sykes, Solicitor
      Noosa Waters Residents Association.

Departments/Sections Consulted:

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

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




                                                                                  Page 9 of 18

Section 10

GENERAL COMMITTEE MEETING AGENDA                                                               4 MAY 2015


3                        CONTRACT 1415T008 - DAINTREE ESTATE FLOOD MITIGATION STAGE 2
                         CONSTRUCTION
DOCUMENT INFORM AT ION




Author                          Project Manager, Adam Britton
                                Planning & Infrastructure Department

Index                           Projects(T1) \ Daintree Estate – Flood Mitigation Plan
                                Subject \ Flood Management \ Flood Mitigation

Attachments                     1.   Golf Course Drive, Tewantin – Overall Works Plan


RECOMMENDATION
That Council note the report by the Project Manager to the General Committee Meeting dated
4 May 2015 and award Contract 1415T008 Daintree Estate Flood Mitigation Stage 2
Construction to Hutchinson Builders for the lump sum amount of $1,116,558.85 and that the
additional budget required as identified in the report be referred to the next Quarterly Budget
Review.


REPORT
Noosa Council previously constructed stage 1 clearing and earthworks for the Daintree Estate
Flood Mitigation in December 2014 as part of an overall solution to mitigate flooding to over 40
homes. The stage 1 works were completed ahead of the wet weather associated with cyclone
Marcia and proved beneficial.

This proposed contract comprises the stage 2 works which includes the major elements of
drainage and concrete bund walls which will complete the project. Refer Attachment 1.

In developing a procurement strategy for the stage 2 works it was considered beneficial to utilise
the existing panel of providers purchasing arrangement to allow expediting of the procurement
process rather than the more lengthy option of an open public tender. Five appropriately skilled
contractors were contacted and subsequently provided with tender documents.

Upon close of tenders, only one submission was received as follows:

Contractor                                                                    Tendered Price
Palmgrove Holdings Trading As Carruthers Contracting                          $1,278,356.91 (Excl. GST)
Aspect Contractors                                                            Sub contracted to Carruthers
Hall Contracting                                                              Did not tender
Shadforths Civil Engineering Contractors Pty ltd                              Did not tender
Doval Constructions                                                           Did not tender


A follow up with three contractors as to the reason for not providing a submission was that the
works were considered complex and that the works were not able to be accommodated within
their existing commitments.

As the tender received from Carruthers was considered significantly over the consultants
estimate of $940,000 and therefore not competitive, Council staff sought to issue the tender
documents to a further three contractors from the existing panel of providers purchasing
arrangement.



                                                                                             Page 10 of 18

Section 11

GENERAL COMMITTEE MEETING AGENDA                                                        4 MAY 2015


Upon close of tenders, a further tender submission was received as follows:

Contractor                                                   Tendered Price
Hutchinson Builders                                          $1,131,558.85
Delaney Constructions                                        Did not tender
JMAC                                                         Did not tender

All three contractors showed initial interest, however, following a more detailed review of the
documentation, two of the three contractors withdrew from making a submission. The reasons
were similar to the initial tender in that the works did not fit within existing commitments ahead of
the end of financial year.

A post tender comparison of the consultant’s estimate and Hutchinson Builders price indicates
that the cost for works is well aligned with the estimate however the contractor has priced in
higher preliminaries and overheads for dealing with the constraints of constructing within the
residential area. Post tender discussions have identified items within the contractor’s allowances
that may be negotiated during the contract with an initial $15,000 saving offered.

Hutchinson Builders comprehensively addressed the requirements set out in the tender
specification. On this basis, the evaluation team considers the offer from Hutchinson Builders Pty
Ltd to be most advantageous to Council.

Pending approval from Council to award the contract, it is understood that that the preferred
contractor, Hutchinson Builders will be able to commence onsite within 48hours. The duration of
the project is estimated at 11 weeks, weather permitting and unforeseen delays.

Previous Council Consideration

Nil

Finance & Risk

Noosa Council’s budget for Shire Wide Flood Mitigation is $2,802,970. The budget component
for the Daintree Estate Flood Mitigation project was $1,295,000 based on an estimate developed
at early concept development in March 2014.

A breakdown of the contract and other costs compared with the project budget as a component
of the total budget is shown below;


Shire Wide Flood Mitigation (Daintree Estate component)

Hutchinson Contract Price             $1,116,558.85 (Price reflects initial negotiated savings)
Contingency 5%                        $55,827.94
Staff allocation                      $7,500
Design engineer attendance            $5,250
Superintendent                        $7,500
Cost to date (Stage 1)                $250,000
SUBTOTAL                              $1,442,636.79

Budget component                      $1,295,000.00

NET    Shortfall                      -$147,636.79 (say $150,000)




                                                                                      Page 11 of 18

Section 12

GENERAL COMMITTEE MEETING AGENDA                                                         4 MAY 2015


The shortfall is proposed to be submitted to Budget Review 4. The shortfall will be minimised as
much as possible during the contract by avoiding variations and seeking of savings where
possible.

The difficulty in obtaining competitive submissions has delayed the overall project by over 1
month which will impact on meeting the 30 June 2015 timeline for the grant acquittal. To mitigate
and risk to the funding, Council staff will seek an extension from the grant administrator.

As the project is to be constructed within a residential area, there is a risk that the residents will
be affected as a result of noise and inconvenience. This will be mitigated by constructing the
works over a short project duration using numerous work teams.

Consultation

External Consultation - Community & Stakeholder

Council staff previously consulted with the Daintree Estate community at a presentation to
residents on 2 July 2014. Subsequent to the community presentation, Council staff carried out
letter box drops and attended residents homes and phone enquiries. An additional letter box drop
will occur ahead of the proposed contract.

Internal Consultation

Council’s Procurement and Contracts Officer and Workplace Health & Safety Officer have been
involved during the tender process.

Departments/Sections Consulted:

x   Community Services                          x   Planning & Infrastructure
    Disaster Management & Public Order              Building & Plumbing Services
    Waste & Environmental Health                    DA Planning
    Community Facilities                            Strategic Land Use Planning
    Cultural Facilities                         x   Asset Design & Investigations
                                                    Asset Planning
                                                x   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 12 of 18

Section 13

GENERAL COMMITTEE MEETING AGENDA    4 MAY 2015



                                                   Attachment 1




                                   Page 13 of 18

GENERAL COMMITTEE MEETING AGENDA                                                                                                      4 MAY 2015

                                                                                                                                                                           Attachment 1
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  Document Set ID: 19854362
  Version: 1, Version Date: 19/01/2015
                                                                                                                                   Page 13 of 18

Section 14

GENERAL COMMITTEE MEETING AGENDA                                                             4 MAY 2015



4                        UPDATE ON TOURISM AND PROPOSED FUNDING AGREEMENT WITH TOURISM
                         NOOSA
DOCUMENT INFORM AT ION




Author                          Chief Executive Officer, Brett de Chastel
                                Executive Office

Index                           ECM/ Subject/ Tourism Noosa

Attachments                     Nil


EXECUTIVE SUMMARY
Not applicable.

RECOMMENDATION
That Council note the report by the Chief Executive Officer to the General Committee Meeting
dated 4 May 2015 and authorise the Chief Executive Officer to enter into a 2 year funding
agreement with Tourism Noosa in accordance with the proposed terms and conditions outlined in
the report.


REPORT
The purpose of this report is to provide the Council with an update on issues associated with
tourism and in particular, some tourism related governance issues, the role of Tourism Noosa,
the role of Sunshine Coast Destination Limited (SCDL) and proposed ongoing funding
arrangements via Council’s Tourism Levy.

Background

Council has had in place a Tourism Levy for nearly 15 years. The levy was requested by the
tourism industry to assist in funding tourism related operations with a particular focus on
marketing, visitor information centres, member development programs etc. The purpose of the
levy has not varied significantly over the years but the methodology used to determine which
ratepayers pay the levy has changed with the Sunshine Coast Council applying a uniform
methodology across the region during the amalgamation period. There has been no change to
that approach since de-amalgamation.

The total amount collected by the Tourism Levy is $2.516 million each year. The levy applies to
ratepayers as follows:

                                                           Cents per dollar of
                                                                                 Minimum
Description of Land                                         Rateable Value
                                                                                 (annual)
                                                               (annual)
A. Transitory Accommodation - Urban                              0.2272           $60.00
B. Transitory Accommodation - Rural                              0.1704           $60.00
C. Commercial and Industrial - Urban                             0.1136           $60.00
D. Commercial and Industrial - Rural                             0.0852           $60.00
E. Iconic Tourism                                                0.2272           $60.00




                                                                                            Page 14 of 18

Section 15

GENERAL COMMITTEE MEETING AGENDA                                                       4 MAY 2015


Tourism Governance

Across Queensland, there are thirteen (13) Regional Tourism Organisations (RTOs) which have
a responsibility to promote tourism on a regional basis. These RTOs work with Tourism and
Events Queensland (TEQ) and receive some core base funding (approximately $300,000) but
are eligible to compete for other TEQ funding.

On the Sunshine Coast, Sunshine Coast Destination Limited (SCDL) has been the RTO since
2009. Its area of responsibility covers the local government areas of Gympie, Noosa and the
Sunshine Coast. SCDL is a company established and owned by the Sunshine Coast Regional
Council (SCRC).

At a local level are local tourism organisations (LTOs). Tourism Noosa is the LTO for the Noosa
Shire area. Tourism Noosa is an industry based organisation that focuses on marketing of
tourism in Noosa. It administers a significant portion of the current tourism levy.

At Gympie, the LTO is Destination Gympie Region (DGR). Gympie does not have a tourism levy
and the LTO is funded directly by Council.

Within the Sunshine Coast area, SCDL effectively acts as the LTO for many areas including
operation of Visitor Information Centres but there are also a number of local tourism associations
that undertake marketing / promotion of local areas.

Tourism Noosa Relationship

Since our Council’s re-establishment, we have developed a very close working relationship with
Tourism Noosa. Cr Frank Wilkie is Council’s representative on the Tourism Noosa Board. The
Mayor and CEO have met regularly with the Tourism Noosa Chairperson (Steve McPharlin) and
CEO (Damien Massingham).

Our Council has worked co-operatively with Tourism Noosa on a number of issues including:
 Support for the Welcome to Noosa initiative with approximately 100 staff (so far) having
   undertaken the Welcome to Noosa training program developed by Tourism Noosa;
 Close liaison regarding relevant grant programs with Tourism Noosa funding a range of
   tourism / event type programs and Council funding a range of community based event
   programs. There is co-ordination between respective staff regarding applications and funding
   where there is a cross-over of applications/events; and
 Attendance at Tourism Noosa networking nights to discuss issues with members of the
   Noosa Tourism industry.

There is an excellent working relationship at an organisational and CEO level between Tourism
Noosa and Noosa Council. The two CEOs meet on a regular basis.

Tourism Noosa adopt a Sustainable Destination Action Plan (SDAP) on a 3 year rolling basis
which sets their strategic goals for marketing and promotion of Noosa as a tourism destination.
The current SDAP expires in 2016. Tourism Noosa also have an annual business plan which
sets more detailed actions to be undertaken in each year. To some extent, those documents
reflect the Corporate Plan / Operational Plan approach that local governments use.

The CEO has been working with Tourism Noosa to help define the right marketing strategy for
the future. The focus should be on low volume / high value markets that add additional economic
value to the Noosa economy. In practical terms, this means that the marketing focus for Tourism
Noosa should be on interstate and overseas markets. Ultimately, the value of the tourism
industry rests on its capacity to add to the GRP (gross regional product i.e. the total value of the
Noosa economy) rather than simply focussing on the number of visitors who come to Noosa.
                                                                                     Page 15 of 18

Section 16

GENERAL COMMITTEE MEETING AGENDA                                                       4 MAY 2015


Previous Funding Arrangements

Noosa Council inherited a number of funding arrangements as a result of the de-amalgamation
process. These arrangements were negotiated by the Transfer Manager but were disputed by
SCRC and subsequently referred to the Minister for adjudication (which found in Noosa Council’s
favour).

For the 2014/15 financial year, the Tourism Levy was allocated as follows:

Issue                                                                               Amount

Commitment to pre-existing sponsorship agreement with Ironman Australia for Noosa      $270K
Triathlon

Amount to be paid to SCDL under pre-existing agreement                                 $500K

Amount provided to Tourism Noosa under pre-existing agreement                         $1.746M

TOTAL LEVY AMOUNT                                                                     $2.516M

(Note that the amount actually collected each year varies slightly as short term holiday
accommodation rental properties are either removed or added to the market and the amount
distributed also varies after accounting for Council’s costs in managing and collecting the
Tourism Levy).

The 2015 calendar year is the final year of the pre-existing sponsorship agreement with Ironman
Australia for Noosa Triathlon. This agreement is directly between Council (originally entered into
by SCRC for a 5 year term) and Ironman Australia.

The Council has also given notice to SCDL that the pre-existing agreement with that organisation
will expire on 30 June 2015 and that any future funding for the RTO should occur via Tourism
Noosa based on identified regional projects that can be undertaken jointly and that will benefit the
region including Noosa.

Proposed Terms and Conditions of a Funding Agreement with Tourism Noosa

It is opportune to review the funding arrangements with Tourism Noosa given the upcoming
expiry of the Noosa Triathlon funding agreement and the proposal to have Tourism Noosa deal
directly with SCDL on regional tourism marketing and projects. A longer term agreement will also
provide Tourism Noosa with more certainty with their forward planning as their funding in future
years is defined (they currently only have a year to year arrangement in place).

The Mayor, Cr Wilkie and the CEO met with the Tourism Noosa Chairperson and CEO earlier
this year to discuss a new funding agreement. The two CEOs have been developing a funding
agreement and the principles that would underpin that agreement.

The proposed terms and conditions of a proposed funding agreement are as follows:
 2 year term commencing on 1 July 2015.
 In 2015, Council will complete its obligation to fund the Noosa Triathlon. Following 2015, any
   future funding of the Noosa Triathlon will be undertaken via Tourism Noosa. Tourism Noosa
   already fund all other events that have a tourism impact and bring the Triathlon under a
   similar arrangement would be more consistent.
 Funding previously provided directly from Noosa Council to SCDL will now be provided to
   Tourism Noosa with Tourism Noosa having an obligation to work directly with SCDL to
   develop regional tourism projects that have a benefit to the Noosa and regional tourism
   industry.
                                                                                     Page 16 of 18

Section 17

GENERAL COMMITTEE MEETING AGENDA                                                       4 MAY 2015


 Tourism Noosa will be obliged to establish a Marketing Contingency Reserve to ensure that
   they have reserve funds to undertake any urgent marketing that may be required as a result
   of an unforeseen downturn (e.g. Pilots’ strike type scenario). Tourism Noosa must establish
   that Marketing Contingency Reserve by 30 June 2016 and maintain that reserve to at least
   $350,000.
 Tourism Noosa must meet certain expenditure benchmarks in undertaking their activities.
   For example, specific funding parameters are proposed which ensure that Tourism Noosa do
   not spend too much on administration and membership development (e.g. no more than
   15%) while maintaining marketing activities (no less than 70%) and industry development and
   sustainability (no less than 10%).
 Tourism Noosa will consult with Council in the development of its next SDAP and will also
   provide a copy of its annual business plan to Council each year for comment prior to its
   adoption. Tourism Noosa will provide activity reports each 6 months including KPIs (yet to be
   finalised but to focus on the contribution to the Noosa economy rather the number of visitors).
 Tourism Noosa to acknowledge that Council is undertaking a trial of Electric Buses and
   following that trial, a decision in relation to Electric Buses may be made during the life of the
   funding agreement. Tourism Noosa and the Council acknowledge that while no decision has
   been made about funding of any ongoing operation, it is possible that some funding may be
   drawn from the Tourism Levy given the nature of use and the potential value to the Noosa
   tourism brand and its use by visitors. The funding agreement will acknowledge that Noosa
   Council will retain the right to vary the amount of the Tourism Levy to Tourism Noosa but it
   will consult and give least 12 months’ notice if there is to be any change to the levy amount
   provided by Council to Tourism Noosa.
 Due to the fact that there is no certainty yet about whether the electric bus solution will be an
   ongoing service after the trial and whether or not there will be any funding contribution to any
   ongoing electric bus operations, it is proposed that the funding agreement with Tourism
   Noosa only be for two years. Once there is more certainty about the electric bus issue, a
   longer term funding agreement (up to four years) can be considered.
 Tourism Noosa will be responsible for funding of tourism related events and Noosa Council
   will be responsible for funding community related events. Where events have a dual purpose,
   the Council and Tourism Noosa will liaise regarding funding.

Previous Council Consideration

Nil.

Finance & Risk

The Council collects $2.516M via the Tourism Levy each year. This is a significant investment of
ratepayer funds into the tourism industry which supports the growth of the Noosa economy.


Consultation

External Consultation - Community & Stakeholder

There has been significant consultation with the CEO of Tourism Noosa in relation to the
proposed 2 year funding arrangements.

Internal Consultation

Director Corporate Services
Cr Wilkie as the Council’s representative on Tourism Noosa


                                                                                     Page 17 of 18

Section 18

GENERAL COMMITTEE MEETING AGENDA                                              4 MAY 2015


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

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




                                                                             Page 18 of 18

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