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2015-10-19 General Committee Agenda
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AGENDA
General Committee
Meeting
Monday, 19 October 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
“Engagement with our community to protect and enhance our lifestyle”
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Section 2
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
TABLE OF CONTENTS
ITEM PAGE
ATTENDANCE & APOLOGIES -
PRESENTATIONS -
ITEMS REFERRED FROM INFRASTRUCTURE & SERVICES COMMITTEE -
ITEMS REFERRED FROM PLANNING & ORGANISATION COMMITTEE -
1 STATE PLANNING REFORM - DRAFT PLANNING BILLS 2
(Previously distributed in Planning & Organisation Committee Agenda, Page 3)
Reason for referral – P&O Committee suggest a number of changes to the
recommendation. A revised recommendation will be presented to the General
Committee for consideration.
2 DEVELOPMENT APPLICATION FOR MATERIAL CHANGE OF USE FOR A 2
DETACHED HOUSE AT 38 PARK CRESCENT, SUNSHINE BEACH - MCU15/0070
(Previously distributed in Planning & Organisation Committee Agenda, Page 21)
Reason for referral – Cr Wellington disagreed with the Recommendation.
REPORTS DIRECT TO GENERAL COMMITTEE 3
1 1516T017 DR PAGES ROAD AND KINMOND CREEK ROAD UPGRADE,
CONSTRUCTION - TENDER ACCEPTANCE 3
2 SEPTEMBER2015 FINANCIAL PERFORMANCE REPORT 8
3 NOOSA BIOSPHERE RESERVE FOUNDATION GRANT PROCESS 14
CLOSED SESSION -
Page 2 of 18
Section 3
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
REPORTS DIRECT TO GENERAL COMMITTEE
1 1516T017 DR PAGES ROAD AND KINMOND CREEK ROAD UPGRADE,
CONSTRUCTION - TENDER ACCEPTANCE
Author Infrastructure Planning & Design Manager, Nicholas Wellwood
Planning & Infrastructure Department
Index ECM\Projects (T1)\Dr Pages Rd & Kinmond Ck Rd Construction-Cap.
Work 500544
ECM\Subject\Road Construction
Attachments 1. Tender Assessment
EXECUTIVE SUMMARY
This report provides a recommendation for the appointment of the preferred civil contractor for
the construction of Dr Pages Road. It also provides an update of the design and environmental
issues that have occurred following the report to Infrastructure & Services Committee dated 18
August 2015.
RECOMMENDATION
That Council note the report by the Infrastructure Planning & Design Manager to the General
Committee Meeting dated 19 October 2015 and:
A. Award tender 1516T017 Dr Pages Road and Kinmond Creek Road Upgrade - Construction
to Shadforths Pty Ltd for the lump sum price of $4,659,830 (excluding GST) subject to
satisfactorily responding to Council’s request for tender clarification;
B. Allocate an additional $800,000 from Council’s infrastructure renewal budget allocation for
the renewal of culverts along Dr Pages Road in the second quarter budget review; and
C. Delegate authority to the Chief Executive Officer to make a determination on any remaining
issues requiring clarification.
REPORT
The sealing this section of Dr Pages Road and Kinmond Creek Road will complete a missing link
in the tourist road network of Noosa Shire. It will also resolve some existing road issues such as
poor geometric and surface conditions and a very low flood immunity.
The new design, will create two sealed 3.5 metre traffic lanes on an 8.5m formation and has a
design speed of 60-80km/hr, with a flood immunity generally correlating with a 10 year
recurrence interval event.
The design presented to Council is a significant improvement on the previous Sunshine Coast
Regional Council draft design concept, which had no improvement in flood immunity and culvert
renewals, and would not have added any value to the existing road network.
Page 3 of 18
Section 4
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
1. Design
The in-house detailed design, review and documentation of Dr Pages Road, with assistance from
specialist consultants includes:
Provision for floodway sections at two major waterways to cater for flood flows over the
road.
Provision for inlet and outlet works for the culverts to be mostly contained within the road
reserve, with a major exception being the large culverts on Kinmond Creek Road.
Confirmation that downstream property owners support the works being carried out in their
property to ensure the drainage system operates effectively.
Provision for retention of vegetation where possible (a walk-through of the project was
carried out recently to fine tune vegetation issues, the road design and culvert locations).
2. Construction Management and Inspections
Contract administration will be carried out on a collaborative basis between Council and a private
contractor, GHD. GHD have been engaged to provide superintendent and quality assurance
services, whilst Council staff will carry out management, engineering certification, inspections
and contract administration of the project.
3. Tender Process
A request for quote under LocalBuy BUS 242-1013 was distributed via vendor panel to all Tier 1
Department of Transport and Main Roads prequalified contractors on Wednesday 9 September
2015 with a quote period of 21 days which closed on Wednesday 30 September 2015. Two
conforming tenders were received.
4. Design Issues
a. Optic Fibre Telstra Cable
The road alignment has been designed to avoid major lengths of cable relocation of the
commercial optic fibre Telstra cable, except around new culvert excavations.
b. Sourcing of Road Pavement and Embankment Fill Materials
Options for the supply of crushed rock from Ringtail Quarry were included in the tender in order
to offer an alternative to potential tenderers to minimise material and haulage costs and impacts
of haulage trucks.
This option included the supply of sub-base crushed rock from the quarry, as well as bulk fill for
embankment earthworks, with alternatives from contractors still able to be considered.
Two alternative pavement options were also included, together with an option for a cement
treated Ringtail Quarry material as an alternative top-course crushed rock.
c. Artificially Elevated Flood Levels due to an existing embankment in private property
No further action has been taken to date regarding the existing embankment in private property
which has caused artificially elevated flood levels. This matter will be followed up separately.
Page 4 of 18
Section 5
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
d. Kinmond Creek Road Culvert
The eastern branch culvert on Kinmond Creek Road will require temporary strengthening to cater
for construction vehicles. This temporary work is currently under design. Full replacement of the
culvert will be proposed for Council’s 2016/17 works programme.
e. Flood Risk/Contingencies
The risk likelihood of flooding in the construction phase is moderate, however the consequences
could be high with regard to timing and consequential impacts on the construction work schedule.
f. Environmental
GHD have been engaged by Council to provide assistance with the submission of a species
management plan and design of culvert works in accordance with the Nature Conservation Act
1992. These costs are included in the revised budget.
5. Tender Assessment
The tender evaluation panel undertook an assessment of the two conforming tender submissions
from
1) Shadforths Civil Pty Ltd; and
2) Sunstate Group Pty Ltd (SGQ).
The tenders were evaluated using the following criteria:
Capability and resourcing
Track Record
Methodology
Quality
Safety
Environment sustainability
Contribution to local economy
Price
The tendered price from Shadforths Pty Ltd of $4,659,830 excluding GST is extremely close to
the lower bound pre-tender estimate of $4,745,000 and represents a very competitive price
particularly in the current South East Queensland civil construction market, which is locally
showing signs of no shortage of work for projects of this scale.
Following the evaluation of the tender submissions, issuing further requests for information, and
undertaking tender interviews, the evaluation team considers the tender from Shadforths Pty Ltd
to be most advantageous to Council and presents the best value for money.
Shadforths are preferred due to their capability in terms of technical skill, level of resourcing,
approach to collaboration and commitment to deliver the project within the required 24 weeks.
6. Programme & Next Steps
Due to the need to move quickly in order to meet construction timelines, it is recommended that
following the General Committee consideration of the tender report, staff be authorised to move
to contract award immediately.
A revised program based on this anticipated award date has been requested from Shadforth’s to
facilitate early establishment works and possession of the site.
Page 5 of 18
Section 6
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
Previous Council Consideration
Ordinary Meeting, 27 August 2105, Item 3, Page 4
That Council note the report by the Acting Design Services Team Leader to the Infrastructure &
Services Committee Meeting dated 18 August 2015 providing an update on the progress of the
planning and design for the upgrade of the unsealed section of Dr Pages Road and Kinmond
Creek Road
Finance & Risk
The current adopted budget for the construction of Dr Pages Road is $4.7 million. This is
consistent with the tender price from the preferred tenderer. The revised budget for Dr Pages
Road being prepared for Budget Review 2 is:
Construction phase budget estimate
Superintendent Costs $100,000
Environment Work (estimate) $100,000
Other - Temporary culvert works, etc. $50,000
Staff costs (estimate) $100,000
Risk based cost contingency $200,000
Council/GHD construction estimate (high bound) $4,950,000
(Includes $1 million of culvert renewals )
Estimated Total Construction budget (2015/16) $5,500,000
Council currently has an adopted capital works budget of $3.9 million for emergent renewals
works. It is appropriate that the additional $800,000 be funded from this allocation for the culvert
renewals, resulting in no additional cash flow requirement for the additional funds.
External Consultation - Community & Stakeholder
Council officers are meeting with property owners to discuss works within private properties
including culvert inlet and outlet works, driveways, fence relocation, tree removals and
earthworks. The road has been designed to fit within the existing road reserve.
The proposed major culverts on Dr Pages Road all discharge onto a single property (341 Dr
Pages Road). The property owners have been co-operative in contributing to the location and
design of the culverts together with any required outlet works.
All the property owners are supportive of the road upgrade.
Internal Consultation
Finance, Procurement, Environment, Civil Operations and Asset Planning Teams.
Departments/Sections Consulted:
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
X Asset Planning
X Civil Operations
Environment
X
X Executive Office X Corporate Services
X Community Engagement X Finance
Customer Service ICT
Executive Support X Procurement & Fleet
Governance Property & Facilities
Human Resources Revenue Services
Page 6 of 18
Section 7
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
Page 7 of 18
Final Evaluation
Weighted Attribute Evaluation Spreadsheet
ContractNo; |_1816T017_
Rea |Dr Pages Road : \d Kinmond Creek Road Construction
ees [Upgrade
cai —_—_| ae
No. |NAME OF TENDERER lexcl of GS a
1([SGQPytte C—C“‘“CC*dSCC#S4, 758,333} ‘ * 2 = a 2 « " a ~
2 [Shadforths Civil Engineering i ($4,659,630) ae = 7 = = a
3L _ _ i= at} The ratings:
4L AE =i} +0 (zero) = Unacceptable a fail for that criteria and extreme risk
SSS SS +20 (twenty) = Very Poor — the content of the submission for that criteria is of a low standard and high risk
6] lL a * 40 (forty) = Poor - the content of the submission for that criteria is unimpressive and poses a moderate risk
a ie i +60 (sixty) = Good ~ the content of the submission for that criteria is meritable and will need to be monitored if awarded
et on a += 80 (eighty) = Very Good - the content of the submission for that criteria is of a high standard and advantageous
rere eee ny] + 100 (one-hundred) = Exceptonal - the content of the submission for that criteria is flawless / outstanding and most advantageous
77 ——===a=a=aaz- ===
11 a =f Once all the data is entered the resultant scores based on the price and non price elements are automatically calculated for you
121 of: =]
13 | |
141 tL |
a
NON-CONFORMING TENDERS Number of Tenders Evaluated
r [Do not evaluate
1 2
— Shadforths Civil
mecemeemcseaenes | ions vs" | ce | "so | as |
DESCRIPTION Resultant Resultant
Probity Plan Criteria exactly +
Total Technical Score po AS
Normalised Technical Score (Tn) Lt TS
PART - Price element | soar id | Oenaigeerinn —|
hinnerir LL |
|Average Fees (Pav) $2.00... $4,709,082
Price Score 99 101
Normalised Price Score (Pn) 98 100
ghted Price Score (P
ments
OTHER DETAILS
Assesment panel member 1 Nicholas Wellwoc
Assesment panel member 2 \da to
Assesment panel member 3 Craig Eldridge
Assesment panel member 4 Rod W ns
Assesment panel member 5 Mike Bryett (GH D)
Assesment panel member 6 Cncl WH&S Off _ The Contract Administrator confirms the above weightings
QBSA LICENCE CHECKED (if applicable) Contract Administrator's signature: = __
15167017 - Evaluation Workbook Alternative B pavement Moy Pocket PANEL (2).xIsx Page 1 14/10/2015
Page 7 of 18Section 8
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
2 SEPTEMBER2015 FINANCIAL PERFORMANCE REPORT
DOCUMENT INFORM AT ION
Author Manager Financial Services, Wayne Jensen
Corporate Services Department
Index ECM / Subject / 22.09 – Monthly Exception Report
Attachments 1. Statement of Comprehensive Income
2. Statement of Financial Position
EXECUTIVE SUMMARY
Year to date operating financial performance to the end of September 2015 is favourable
compared to year to date budget forecasts. The current budget also reflects the operating and
capital carryovers approved at the Ordinary Meeting held on the 27 August 2015. A quarterly
budget review will now be undertaken as per procedure to address required variations to the
budget based on the first quarter performance and to account for other required changes that
have emerged since the adoption of the original budget and carryovers. At this stage there does
not appear any significant items that will impact on the projected year end operating surplus.
Financial Performance Summary
Current YTD Actual Variance Variance Status
YTD $m $m YTD
Budget %
$m
Recurrent Revenue $38.2 $38.7 $0.5 1.3% On track
Recurrent Expense $22.6 $21.6 $1.0 4.4% On track
Net Capital Revenue $0.8 $0.8 $0.0 0% On track
Capital Expenditure $4.9 $2.8 $2.1 42% Watch
Financial statements including Statement of Comprehensive Income and Statement of Financial
Position are included as attachments for information of Council.
Figure 1: Actual Performance Compared to YTD Budget
$45
$40
$35
$30
$25
$20
$15
$10
$5
$-
YTD Budget ($m) YTD Actual ($m)
Operating Revenue Operating Expenditure
Page 8 of 18
Section 9
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee
Meeting dated 19 October 2015 providing the September 2015 monthly financial performance
report for the 2015/16 financial year.
REPORT
Recurrent Revenue
Council has received 44% ($38.7m) of its recurrent revenue budget of $87.3 million as at the end
of September 2015 with the majority of income ($30m) related to the first half-yearly levy of rates
and utility charges. Commentary on each recurrent revenue type is provided below:
Rates and Levies – $30.2m (50%) of the annual budget of $60.5m has been recorded.
Fees and Charges – Fees and charges earned ($2.5m) totals 52% of the full year budget
(compared to the YTD benchmark of 25%) due primarily to the issuing of annual dog
registration fees and also licences and permits. There are a number of fee areas that are
marginally above budget, and the full-year forecast will be reviewed as part of the
September quarter budget review.
Interest Received – Currently 2.7% above forecast levels due to higher cash balances than
originally estimated.
Dividend and Tax – Dividends and the payment of tax equivalent from Unitywater are in
line with budget forecasts.
Other Revenue – Generally in accordance with budget predictions, though all variances will
be investigated as part of the September quarter budget review.
Grants and Subsidies – Overall receipts for operational grants are in accordance with
budgeted levels.
Figure 2: Recurrent Revenue Position by Type (Excluding Rates)
$3
$3
YTD Budget ($m)
$2
YTD Actual ($m)
$2
$1
$1
$0
Other
Fees
Grants
Dividend
Tax
Interest
Recurrent Expenditure
Operating expenditure of $21.6 million is currently 24% of the full year budget spend with a
positive YTD variance of $1m or 4%. The favourable budget variance relates to under
expenditure to date in materials and services. Detailed commentary for significant items appears
below.
Page 9 of 18
Section 10
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
Employee Costs – Actuals of $6.7m against the YTD budget of $6.7m and equates to 24%
of the full year budget.
Materials and Services – 26% of budget ($10.1m) has been expended compared to the
budget of $11.7m. Some variances relate to unexpended levy funds, but all operational
areas will be reviewed in the quarterly budget review.
Finance Costs – generally in accordance with budget, though the year-end forecast for
merchant fees will be reviewed.
Depreciation expenses are currently running in accordance with budget forecasts.
Other Expenses – generally in accordance with budget.
Figure 3: Recurrent Expenditure Position by Type
$12
$10
YTD Budget ($m)
$8 YTD Actual ($m)
$6
$4
$2
$0
Finance Costs
Materials
Depreciation
Employees
Other
Capital Revenue
Included in these reporting lines are cash contributions from developers ($0.4 million), together
with $0.4 million received for transport infrastructure capital grant funding.
Capital Works Program
Capital expenditure (excluding commitments) is $2.8 million against the full-year budget of $31.3
million. Works scheduling is now complete and will continue to be refined each month to ensure
budget performance can be reported accurately. Detailed discussion of progress in the delivery
of the capital works program is provided quarterly to the Infrastructure and Services Committee.
Cash Management and Investment Performance
Council funds are invested in accordance with the adopted Investment Policy. Total cash on
hand as at 30 September 2015 was $70.3 million. The cash balance includes constrained
funding carried forward for capital projects still under construction, plus unspent funds from
special rates and levies.
Council’s investment portfolio is balanced across a number of agencies, as shown in the graph
on the left. The graph on the right shows the current risk profile using industry credit ratings.
Page 10 of 18
Section 11
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
Bendigo
Suncorp 6%
8% A2
A1 6%
Westpac 9%
6%
QTC A1+
44% (QTC)
44%
NAB A1+
26% (Other)
41%
CBA
10%
The actual interest revenue for the month was $158,494 with a weighted average yield of 2.58%
against the industry benchmark (Bloomberg AusBond Bank Bill Index) of 2.14%. It is noted that
current investment rates are marginally below original estimates for this period, however interest
revenue remains ahead of budget forecasts due to more funds available for investment.
Previous Council Consideration
Nil
Finance & Risk
Figures shown in the Statement of Financial Position are interim only pending finalisation of the
annual financial audit by the Queensland Audit Office, which is currently being finalised.
Consultation
External Consultation - Community & Stakeholder
Nil
Internal Consultation
All areas of Council are consulted as part of the regular monitoring of budget performance.
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 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 11 of 18
Section 12
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
Page 12 of 18
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
Noosa Council
Statement of Comprehensive Income
For the Year Ended 30 June 2016
As at 30-Sep-2015
Current Current
Budget Budget Actual Percentage
2016 YTD YTD Annual Budget
$ $ $ %
Revenue
Recurrent Revenue
Rates, levies and charges 60,463,174 30,231,587 30,208,602 50%
Fees and charges 4,807,279 2,132,381 2,481,133 52%
Dividend income 1,925,140 - 42 0%
Interest received 4,568,059 1,181,474 1,213,694 27%
Tax equivalents 1,088,812 250,124 290,124 23%
Sale of Goods and Major Services 7,274,896 1,764,975 1,843,488 25%
Sale of Contract & Recoverable Works 15,364 3,841 (8,961) -98%
Rental & Lease Income 1,173,953 271,469 244,837 21%
Other income 598,949 139,300 231,047 39%
Grants, subsidies, contributions and donations 5,394,440 2,188,868 2,195,265 41%
87,310,066 38,164,018 38,659,272 44%
Expenses
Recurrent Expenses
Employee benefits 27,654,844 6,669,650 6,660,533 24%
Materials and services 39,112,272 11,074,631 10,071,877 26%
Finance costs 2,686,315 665,329 687,122 26%
Depreciation and amortisation 16,630,163 4,157,541 4,157,541 25%
Other expenses 121,828 32,929 32,540 27%
86,205,421 22,600,079 21,609,613 25%
Operating Result 1,104,644 15,563,939 17,049,658
Capital Revenue
Capital contributions and donations 1,606,029 401,507 405,748 25%
Grants, subsidies, contributions and donations 2,072,221 416,170 430,768 21%
Other capital revenue - - 3,601
Capital Expenses
Capital Expenses - - -
Net Result 4,782,895 16,381,616 17,889,776
Other Comprehensive Income
Increase / (decrease) in asset revaluation surplus - - -
Other Comprehensive Income - - -
Total Other Comprehensive Income - - -
Total Comprehensive Income 4,782,895 16,381,616 17,889,776
Page 12 of 18Section 13
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
Page 13 of 18
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
Current Assets
Cash and cash equivalents 36,419,641 67,851,412 50,891,174
Trade and other receivables 8,059,528 7,138,673 5,794,388
Inventories 104,038 99,796 104,038
Other current assets 657,006 1,444,431 3,097,262
45,240,213 76,534,312 59,886,862
Non Current Assets held for sale - - -
Total Current Assets 45,240,213 76,534,312 59,886,862
Non Current Assets
Trade and other receivables 49,217,517 49,217,517 49,217,517
Other non current Assets - - -
Investments 60,978,225 60,978,425 60,978,225
Investment property 3,831,234 3,831,234 3,831,234
Property, plant and equipment 923,900,425 885,794,938 887,078,579
Intangible assets 2,798,146 2,650,224 2,701,457
Total Non Current Assets 1,040,725,547 1,002,472,338 1,003,807,012
Total Assets 1,085,965,760 1,079,006,649 1,063,693,873
Current Liabilities
Trade and other payables 4,300,687 7,846,044 8,100,893
Borrowings 2,854,619 758,668 2,633,065
Provisions 5,013,310 4,100,327 4,114,390
Other 380,497 648,806 1,082,497
Total Current Liabilities 12,549,113 13,353,845 15,930,844
Non Current Liabilities
Trade and other payables - - -
Borrowings 35,247,498 36,747,480 36,747,480
Provisions 8,210,644 8,194,924 8,194,924
Total Non Current Liabilities 43,458,142 44,942,404 44,942,404
Total Liabilities 56,007,255 58,296,249 60,873,248
Net Community Assets 1,029,958,505 1,020,710,400 1,002,820,625
Community Equity
Asset Revaluation Surplus 36,519,656 14,334,106 14,334,106
Retained Surplus / (Defeciency) - - -
Shire Capital 993,438,849 973,851,849 973,851,849
Current Year Net Earnings - 32,524,445 14,634,670
Total Community Equity 1,029,958,505 1,020,710,400 1,002,820,625
Page 13 of 18Section 14
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
3 NOOSA BIOSPHERE RESERVE FOUNDATION GRANT PROCESS
CUMENT INF ORM ATION
Author Chief Executive Officer, Brett de Chastel
Executive Office
Index ECM/Subject/39.23 Noosa Biosphere Reserve Foundation - Management
Attachments Nil
EXECUTIVE SUMMARY
Not applicable
RECOMMENDATION
That Council note the report by the Chief Executive Officer to the General Committee Meeting
dated 19 October 2015 and advise the Noosa Biosphere Reserve Foundation Board that Council
A. Supports the Board considering expressions of interest that have been submitted to the
Noosa Biosphere Reserve Foundation as part of their grant process, where those
expressions of interest relate to potential projects that require funding beyond 30 June
2016;
B. Notes that the Board cannot provide final approval for any multi-year projects until it
receives Council’s approval pursuant to section 4.2 of the Funding Deed and requests the
Board to seek that approval in due course; and
C. Will consider funding for future financial years for the Noosa Biosphere Reserve
Foundation as part of the Council’s annual budget process in accordance with the funding
agreement.
REPORT
Introduction
As Council would be aware, it has provided funding to the Noosa Biosphere Reserve Foundation
(NBRF) in accordance with a funding deed entered into between Council and NBRF. The
funding deed runs until 30 June 2018.
The funding provided in the 2015/16 financial year is in accordance with section 4.1 (c) of that
funding deed namely:-
(a) $250,000 (excluding GST) payable to the NBRF Public Trust from the Environment Levy
for projects that conserve and/or improve biodiversity in the Noosa Shire and have tangible
and measurable outcomes;
(b) $80,000 (excluding GST) – payable to NBRF Public Trust for economic projects consistent
with the purposes of the Trust.
Prior to 30 June 2014, the Council also paid $40,000 to NBRF for start-up operational expenses
in accordance with the terms of the funding deed. The Council also pays $140,000 in the
2015/16 financial year for operational funding.
Under the funding deed, the funding for each of the subsequent years (2016/17 and 2017/18) will
be negotiated on an annual basis between the Council and NBRF. Those negotiations include a
requirement for NBRF to present details of its funding requirements to be considered as part of
Council’s annual budget process.
Page 14 of 18
Section 15
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
NBRF EOI Process
NBRF is currently undertaking an Expression of Interest (EOI) process for projects that will
advance the purposes of the trust. NBRF have advised that they are using a two tier process for
determining projects that could be funded. The first stage is to call for EOIs for potential projects.
That has occurred and the NBRF Board is currently assessing those EOIs.
The second stage of the NBRF process (which is about to occur) is for the NBRF Board to invite
those applicants who have projects which best meet the purposes of the trust to work up their
EOIs into detailed projects. The Board would then consider those detailed projects for funding
and the projects can commence if approved by the NBRF Board.
Multi-Year Proposals
The Chairperson of NBRF has written to the CEO advising that they have received a number of
EOIs which warrant further consideration by the NBRF Board but that these projects span a
number of years beyond the current financial year. Some of these projects also have significant
funding commitments but the EOIs appear to be worthy of further consideration by the NBRF
Board.
As such, the NBRF Board has a dilemma. They would like to consider these EOIs further but
need clarity in relation to whether they can commit to projects that have a financial component
beyond 30 June 2016. They are also seeking clarity about whether a financial commitment to
significant projects will impact on their capacity to undertake other projects in the future.
Dealing with each of these issues in turn:-
1. Multi-Year Funding – The funding deed between NBRF and Council recognises that this
may occur. Clause 4.2 of the funding deed provides as follows:-
“Before NBRF commits to any purchase, contract, undertaking or activity that has financial
commitments beyond the period of approved funding and for which purchase, contract,
undertaking or activity NBRF will require Council funding, NBRF must apply for and obtain
approval from Council’s Chief Executive Officer or his or her delegate prior to NBRF
making the commitment.”.
At this stage, Council is not being asked to pre-approve funding for future years. NBRF is
simply seeking Council’s views on whether it would countenance NBRF continuing to
explore proposed multi-year projects.
If not, NBRF could not ask any applicants who have relevant multi-year EOIs to further
refine those projects for formal consideration by the NRF Board as the Board could not
commit future funding beyond 30 June 2016.
Conversely, if the Council would consider this “in principle”, then the NBRF Board may ask
these applicants in their EOI process to develop their proposals further for formal
consideration by the NBRF Board. In that circumstance, and if the NBRF wished to
approve these particular projects, then the matter would be referred back to Council in a
future round of Council meetings for final consideration of committing future funding
(pursuant to section 4.2 of the funding deed) with full details of the proposed projects being
provided to Council at that stage.
My advice is that the Council should agree to advise the NBRF Board that it can proceed to
consider these multi-year projects submitted under the EOI process. This would allow
those projects to be fully developed and assessed by the NBRF Board. If after considering
those, the NBRF wishes to approve those multi-year projects, it would need to provide the
Council with full details so the Council can consider whether or not it will provide formal and
final approval under section 4.2 of the funding deed. That decision will be Council’s alone
under section 4.2 of the funding deed. Depending on timing, such a decision would likely
be referred to the November or December round of Council meetings.
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Section 16
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
2. Funding Commitment – The second element of the request from NBRF relates to the
process by which future funding to the NBRF is decided by Council. The NBRF Board has
asked whether the Council would consider funding over and above funding that will be
available from Council in the future as the NBRF Board would presumably be reluctant to
commit all future funding just to these multi-year projects. In other words, the Board is
probably concerned that if it ultimately approves some major multi-year projects, will this
absorb a lot of its future funding and limit its opportunities to fund other projects that may
emerge in that period.
This raises some issues for consideration by Council:-
Under the funding deed, the Council agreed to pay the amounts set out in section 4.1
(c) in the 2015/16 financial year.
The amounts to be paid in future years are not prescribed.
The funding deed sets out a process for determining funding in future financial years
through to 30 June 2018.
That process requires the NBRF Board to provide Council with an indicative budget
and submit it to Council for review as part of the Council’s annual budget process.
The funding for each subsequent financial year is then negotiated between the
Council and the NBRF through the Council budget process.
Just because the Council provided $250,000 (from the environmental levy) and
$80,000 (for economic projects consistent with the purposes of the Trust) in 2015/16
does not mean that such amounts must be applied in the future. It is up to the
Council each year to determine how much to apply.
Presumably, the Council will examine the program proposed by the NBRF Board
each year in determining the amount of funding to allocate. This consideration would
take into account the proposed program and projects put forward by the NBRF at that
time and could consider funding already committed in future years (if that is ultimately
approved by Council).
My advice to Council is that Council could not at this stage commit to guaranteeing that it will
fund additional amounts to the NBRF for future years. That should occur through the process set
out in the funding agreement and form part of Council’s overall budget deliberations. At that
time, the Council can consider the context of its own budget and the details put forward by the
Board at that stage of its proposed program for the relevant financial year.
About the Multi-Year EOI Proposals
There were a number of multi-year projects submitted under the EOI process to the NBRF.
There are some in particular that the NBRF Board may wish to progress subject to “in principle”
agreement from the Council for them to consider multi-year projects.
The three EOIs all relate to the Noosa River. The EOIs relate to:-
1. Further development of the Oyster Reef Project – focus on the lower reaches of the river
2. Development of the science behind a Prawn Restoration Project – focus on the middle
reaches of the river
3. Catchment management in the Kin Kin Creek - focus on the upper reaches of the river and
including a LiDAR project identifying sediment issues.
The intention of this report is not to set out details of those EOIs. They are matters currently
before the NBRF Board and are yet to be made public through that process. If those EOIs are
developed further into projects that the NBRF Board recommend, full details would be provided
to Council at that stage so that the Council can consider any request from NBRF for multi-year
funding.
The NBRF Board has advised that these applications would involve financial and in kind support
from other parties in addition to Council. Based on advice from NBRF Board, the financial and in
kind support contribution from other parties to these projects is approximately $309,000pa for 3
years. The amount of funding being sought through the NBRF is $142,000pa for 3 years. This
may change as the EOIs are worked up into detailed projects.
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Section 17
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
Previous Council Consideration
Ordinary Meeting 12 March 2015 Item 3, Page 10
NOOSA BIOSPHERE RESERVE MANAGEMENT – FUNDING ARRANGEMENTS AND LEASE
OF DOONELLA HOUSE
That Council note the report by the Executive Officer to the Planning & Organisation Committee
Meeting dated 3 March 2015 and the further report to the General Committee Meeting dated 9
March 2015 and:
A. Agree to enter into a funding deed with the Noosa Biosphere Reserve Foundation Ltd as
provided in Attachment 1 to the report to Planning & Organisation Committee dated 3
March 2015 with the following changes:
1. Clause 4.1 Payments
Amend clause 4.1 b) ii) to read “$250,000 (excluding GST) – payable to the NBRF
Public Trust from the Environment Levy for projects that conserve and/or improve
biodiversity in the Noosa Shire and have tangible and measurable outcomes”.
Amend clause 4.1 b) iii) to read “$80,000 (excluding GST) – payable to the NBRF
Public Trust for economic projects consistent with the purposes of the Trust.
2. Clause 6.2 Repayment of Funding
Amend as outlined in the further report to General Committee dated 9 March 2015.
B. Authorise the Chief Executive Officer to make minor alterations to the Deed, as may be
necessary, and enter into a formal agreement with the Foundation;
C. Agree in principle to a one-off contribution of $10,000 being for the establishment and initial
operating costs of a community based incorporated association that is aligned with the
purposes of the Noosa Biosphere Reserve Trust, subject to no membership fees being
charged until after the second annual general meeting;
D. Apply the exception to the requirement for tendering under Section 236(1)(b)(ii) of the Local
Government Regulation 2012 for the occupancy of part of Council owned premises located
on Lot 1, RP96529 at 52 Doonella Street, Tewantin as the proposed lease is to a not for
profit community organisation; and
E. Authorise the Chief Executive Officer to enter into negotiations with the Noosa Biosphere
Reserve Foundation Ltd and finalise a lease for part of Council owned premises located on
Lot 1, RP96529 at 52 Doonella Street, Tewantin, for a period of 3 years, with a 3 year
option.
Ordinary Meeting 7 May 2015, Item 4, Page 12
NOOSA BIOSPHERE RESERVE FUNDING ARRANGEMENTS - REVISED FUNDING DEED
That Council note the report by the Executive Officer to the Planning & Organisation Committee
meeting dated 28 April 2016 and:
A. Agree to the revisions made to the draft funding deed between Council and the Noosa
Biosphere Foundation Ltd as detailed in Attachment 1 to the report; and
B. Authorise the Chief Executive Officer to amend Clause 4 – Payments to provide for the
project funding under Clauses 4.21 B ii) and iii) to be paid after 30 June 2015 and to
finalise the arrangements.
Page 17 of 18
Section 18
GENERAL COMMITTEE MEETING AGENDA 19 OCTOBER 2015
Finance & Risk
Details of budget issues are outlined in the report. The risk if Council does not approve the
request by the NBRF Board for them to consider EOIs that have multi-year components is that
potentially good projects cannot be considered by the NBRF Board because they go beyond 30
June 2015. The Council will have the final say on those multi-year projects when the NBRF
Board seeks final approval from the Council.
Consultation
External Consultation - Community & Stakeholder
Chairperson of the NBRF Board – Mr Scott Williams
Internal Consultation
Nil
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 Corporate Services
Community Engagement Finance
Customer Service ICT
x Executive Support Procurement & Fleet
Governance Property & Facilities
Human Resources Revenue Services
Page 18 of 18