2019-06-11 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                    11 JUNE 2019


       $9.7 million for significant business activities; and
       $340,000 for Code of Competitive Conduct business activities.
2.       Application to Identified Business Activities for the 2019/20 Financial Year
Two of Council’s activities have been identified as competitive in nature that meet the criteria and
relevant threshold levels for identification as business activities. The activities that have been
identified and reform levels to apply (based on the estimated annualised budgeted expenditure)
are:
 Business Activity               Expenditure                Reform Level
 Waste Management                $12.0 million              Significant
 Holiday Parks                   $1.8 million               Code of Competitive Conduct
Note: annualised expenditure for significant activities includes total operating expenses less depreciation less
competitive neutrality costs plus interest and loan redemption. Expenditure for code of competitive conduct activities
includes total operating expenses plus interest.

Previous Council Consideration
Council has adopted NCP reforms to the Waste Management and Holiday Parks business
activities since 2014.
Finance
The financial implications of NCP reforms primarily revolve around pricing strategies for full cost
recovery, which includes a return on investment component. In addition, there is an
administrative effort in ensuring ongoing competitive neutrality compliance (i.e. budget
preparation, reporting, full cost pricing modelling).
Risks & Opportunities
Failure to appropriately review and apply competition reforms annually is a breach of the Local
Government Act 2009, and could also potentially result in competitive neutrality complaints
should appropriate adjustments not be incorporated into business activity pricing decisions.
Consultation
External Consultation - Community & Stakeholder
Council has referenced the latest advice received from by the Department of Local Government,
Racing and Multicultural Affairs in relation to expenditure thresholds.
Internal Consultation
Nil.
Departments/Sections Consulted:
       Chief Executive Officer         Community Services                           X   Corporate Services
       Executive Officer               Director                                     X   Director
       Executive Support               Community Development                        X   Financial Services
                                       Community Facilities                             ICT
                                       Libraries & Galleries                            Procurement & Fleet
                                       Local Laws                                       Property
                                       Waste & Environmental Health                     Revenue Services

       Executive Services              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              Environmental Services                           Disaster Management
                                       Strategic Land Use Planning                      Infrastructure Planning,
                                                                                        Design and Delivery




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