2016-07-12 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                       12 JULY 2016


     An inspection of the Noosa Heads Bus Station which is also on the same bus route revealed
     a much simpler site for incorporation of the bus charging infrastructure. Consequently, the
     Transit Centre application was cancelled and resubmitted for Noosa Heads Bus Station on
     3 June 2016.
d.   In anticipation of seeking support from Energex due to this project being an Australian first,
     a letter was sent from Mayor Tony Wellington to the Energex CEO on 7 June 2016 requesting
     fast-tracking of the applications, in order to meet the proposed timings for the trial. A positive
     response from the Energex CEO was received on 16 June 2016 with a commitment to
     support working with Noosa Council to progress the project.
e.   Energex assessment of the applications formally commenced on 22 June 2016. Advice to
     date from Energex staff is that the applications have been fast tracked and are at the detailed
     planning phase.
f.   As part of the Energex assessment, Energex have requested detailed information on the
     electric bus charging specifications. The purpose of requesting the information is to
     determine the design of the pad mount transformer required at each site, and to ensure the
     power drawn by the charging stations does not affect the quality of electricity in the area.
g.   On 29 June 2016, Higer Bus & Coach Australia CEO travelled to meet with the bus charging
     design engineers in China, with the aim of confirming the bus charging stations are able to
     meet Energex requirements. The outcome of these meetings is expected on 5 July 2016
     ahead of an onsite meeting on 6 July 2016, which will then in turn allow Energex to progress
     the design of the pad mount transformers and other network changes.
h.   Given the bus charging stations will require pad mount transformers and other network
     changes, Council will seek to negotiate with Energex for the most cost effective and
     advantageous outcome for the trial. It is proposed that given the costs are likely to be high
     and the trial duration only 6 months, a lease of the Energex infrastructure may be the most
     advantageous option. The outcome of these negotiations will be part of a future report to
     Council regarding the project.
i.   Energex have advised that any infrastructure works will have a 26 week lead time. This
     places any installation no sooner than early January 2017. This timing accords with the bus
     manufacture and delivery timetable which would occur no earlier than the end of January as
     described in more detail below.

2.   Negotiations

Council and Higer Bus & Coach have had ongoing negotiations regarding the lease agreement for
the delivery of the buses, and Council’s request for contract performance security in the form of
bank guarantees. An update on these is provided below.

a.   Programme

With the aim of all outstanding items being resolved to Council’s satisfaction and a lease
agreement signed during the week of 11-17 July, bus delivery is expected to take 28 weeks (7
months) arriving approximately the 16-20 January 2017. Subject to no further extensions, the six-
month trial would conclude on 30 June 2017.

Key dates during the trial period include:
   Last week of Xmas School Holidays (Qld) 16– 23 Jan 2017.
   Australia Day 26 January 2016
   Easter School Holidays (Qld) 31 March – 18 April 2017
   Easter week-end 14-17 April 2017
   Proposed Free Holiday Buses 8 – 17 April 2017


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