2022-09-12 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                         12 SEPTEMBER 2022


   innovation/continuous improvement initiatives relating to technology and other
   improvements. Given the nature of the service SLSQ provided satisfactory responses to
   address environmental and sustainability initiatives and it is noted SLSQ has identified this
   criteria as a focus for further development.

   7.    Options
   There are a number of options available to Council regarding lifeguard service levels for the
   new agreement. The options, and opportunities and risks associated with each are outlined
   below.
   Option 1 – Indexation of agreement to Fair Work Commission wage rises and no
   change to service levels – agreement value $1,567,667
   Council enters into an agreement with SLSQ with annual increases indexed to Fair Work
   Commission wage rises and equipment/consumables linked to CPI and no change to service
   levels
   This option involves Council entering into an agreement with SLSQ for the provision of
   lifeguard services with no change to existing service levels and annual increases indexed to
   Fair Work Commission wage rises (labour component) and CPI for equipment/consumables
   Opportunities
      Price increase of $24,670 (comprising increase to equipment and consumables cost
       only) more than current agreement value.
      Negligible impact to ratepayers.
      Addresses SLSQ concerns regarding indexation to Fair Work Commissions to manage
       enterprise risk.
   Risks
        No increase to service levels to improve service.
        Does not address potential future service level risk factors.

   Option 2 – Indexation of agreement to CPI and no change to service levels – agreement
   value $1,677,677
   Council enters into an agreement with SLSQ with annual increases indexed to CPI and no
   change to service levels
   This option involves Council entering into an agreement with SLSQ for the provision of
   lifeguard services with no change to existing service levels and annual increases indexed to
   CPI for both labour and equipment/consumables (current agreement status)
   Opportunities
      Price increase of $134,670 or 9% (comprising $110,000 impact of SLSQ hourly rate
       increases and $24,670 increase to equipment and consumables) more than current
       agreement value.
      Reduced impact to ratepayers compared to other options.
      CPI is the indexation method utilised under current agreement and is familiar to
       Council.
   Risks
        No increase to service levels to improve service.
        Does not address SLSQ concerns regarding indexation to Fair Work Commissions to
         manage enterprise risk.
        Does not address potential future service level risk factors.




                                                                                 Page 47 of 85