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2016-06-13 General Committee Agenda
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AGENDA
General Committee
Meeting
Monday, 13 June 2016
commencing at 10am
Council Chambers, 9 Pelican Street, Tewantin
Committee: Crs Frank Wilkie (Chair), Jess Glasgow, Ingrid Jackson,
Joe Jurisevic, Frank Pardon, Brian Stockwell, Tony Wellington
“Engagement with our community to protect and enhance our lifestyle”
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Section 2
GENERAL COMMITTEE MEETING AGENDA 13 JUNE 2016
TABLE OF CONTENTS
ITEM PAGE
ATTENDANCE & APOLOGIES -
PRESENTATIONS -
ITEMS REFERRED FROM PLANNING & ENVIRONMENT COMMITTEE
1 FURTHER REPORT – DEVELOPMENT APPLICATION FOR MATERIAL CHANGE
OF USE – ENTERTAINMENT & DINING BUSINESS TYPE 1 – FOOD &
BEVERAGES SITUATED AT 2 BOTTLEBRUSH AVENUE, NOOSA HEADS –
MCU15/0086 -
(Planning & Environment Committee Agenda, 7 June 2016, Item 1, Page 3)
Reason for referral: Cr Wilkie disagrees with some conditions of the approval
recommendation
2 PLANNING STUDY ON AGRICULTURE AND AGRICULTURAL LAND -
(Refer Planning & Environment Committee Agenda, 7 June 2016, Item 5, Page 57)
Reason for referral: Cr Stockwell requests amendments to the draft study
ITEMS REFERRED FROM SERVICES & ORGANISATION COMMITTEE
3 2016-17 COMMUNITY GRANTS FUNDING – FESTIVE, ALLIANCE, PROJECT AND
REGIONAL ARTS DEVELOPMENT FUND (RADF) -
(Services & Organisation Committee Agenda, 7 June 2016, Item 1, Page 3)
Reason for referral: Cr Pardon disagrees with the recommendation
REPORTS DIRECT TO GENERAL COMMITTEE 3
4 FINANCIAL PERFORMANCE REPORT - MAY 2016 3
5 CONTRACT LBNA01 "LIQUID WASTE" 10
CLOSED SESSION -
Page 2 of 12
Section 3
GENERAL COMMITTEE MEETING AGENDA 13 JUNE 2016
REPORTS DIRECT TO GENERAL COMMITTEE
4 FINANCIAL PERFORMANCE REPORT - MAY 2016
DOCUMENT INFORM AT ION
Author Acting Manager Financial Services, Megan Macmichael
Corporate Services Department
Index ECM / Subject / 22.09 – Monthly Financial Performance Report
Attachments 1. Statement of Comprehensive Income
2. Statement of Financial Position
EXECUTIVE SUMMARY
Overall 2015/16 financial performance for the 11 months to 31 May 2015 shows a positive year-
to-date variance against budget, with both operating revenue and expenditure above and below
budget respectively. Current YTD budget figures now reflect adjustments approved by Council as
part of budget review 4.
Given Council’s prudent budgeting approach a reasonable operating surplus above that budgeted
is expected at the end of the financial year without compromising service levels. Current financial
performance demonstrates Council’s compliance with its financial sustainability policy and will
ensure that at year end all 3 key financial ratios are within target levels set by the state government.
Financial Performance Summary to 31 May 2016
Current YTD Actual Variance Variance Status
YTD $m $m YTD
Budget %
$m
Recurrent Revenue $84.9 $86.7 $1.8 2.1% On track
Recurrent Expense $75.9 $73.5 $2.4 3.2% On track
Capital Revenue $7.3 $7.0 $0.2 3.2% On track
Capital Expenditure $31.7 $26.0 $5.7 18% On track
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
$100
$90
$80
$70
$60
$50
$40
$30
$20
$10
$-
YTD Budget ($m) YTD Actual ($m)
Operating Revenue Operating Expenditure
Page 3 of 12
Section 4
GENERAL COMMITTEE MEETING AGENDA 13 JUNE 2016
RECOMMENDATION
That Council note the report by the Acting Manager Financial Services to the General Committee
Meeting dated 13 June 2016 providing the May YTD monthly financial performance report for the
2015/16 financial year.
REPORT
Recurrent Revenue (YTD Benchmark 92%)
Council has received 98% ($86.7 million) of its recurrent revenue budget of $88 million as at the
end of May 2016. Commentary on each recurrent revenue type is provided below:
Rates and Levies – $60.6m (100%) of the annual budget of $60.5m has been recorded.
General rates are slightly below full year budget with waste collection charges above budget.
Fees and Charges – Fees and charges earned ($5.4m) totals 106% of the revised full year
forecast. Planning, development, parking fees, land use permits, and property searches fees
continue to exceed current YTD budgets.
Interest Received – Currently 8.2% above YTD forecast levels due to additional interest made
on cash due to spending timing issues.
Dividend and Tax – Dividends and the payment of tax equivalent from Unitywater are in line
with budget forecasts.
Other Revenue – holiday park fees, rental income, and waste disposal fees continue to be
above budget, with sale of recyclable materials (concrete and scrap metal) below budget. Sale
of quarry products for material used in the construction of Dr Pages Road has contributed to
the overall variance ($284k), offset by an increase in operational costs (cost of goods sold –
COGS in materials and services expenditure).
Grants and Subsidies – Receipts for operational grants are generally tracking in accordance
with adjustments to the revised budget forecast.
Figure 2: Recurrent Revenue Position by Type (Excluding Rates)
$12.0
YTD Budget ($m)
$10.0
YTD Actual ($m)
$8.0
$6.0
$4.0
$2.0
$0.0
Other
Fees
Grants
Dividend
Tax
Interest
Page 4 of 12
Section 5
GENERAL COMMITTEE MEETING AGENDA 13 JUNE 2016
Recurrent Expenditure (YTD Benchmark 92%)
Operating expenditure is currently 84% of the full year budget forecast. Detailed commentary for
significant items appears below.
Employee Costs – Actuals of $24.3m against the YTD budget of $24.6m and equates to 88%
of the full year budget. Whilst the total is within the budget, this is actually represented by a
range of minor variances across operational areas, including allocation of wages to capital
projects, costs for labour hire staff to cover short term vacancies in critical operational areas,
and staff training, which will continue to be monitored.
Materials and Services – $31.3m (78%) of the full year budget has been expended compared
to the YTD budget of $33.5m. Variances relate to under-expenditure against contract services,
maintenance, and special levies ($407k). Specifically, there is under-expenditure against
buildings and facilities maintenance ($73k), and savings against fleet operations associated
with fuel costs and lease and insurance costs ($366k); Waste operations are currently running
under original forecasts ($506k).
Finance Costs – generally in accordance with budget.
Depreciation expenses are currently running in accordance with budget forecasts, with minor
adjustments anticipated for assets sold through the year.
Other Expenses – generally in accordance with budget.
Figure 3: Recurrent Expenditure Position by Type
$40
$35
YTD Budget ($m)
$30
YTD Actual ($m)
$25
$20
$15
$10
$5
$0
Finance Costs
Materials
Depreciation
Employees
Other
Capital Revenue
YTD capital revenue of $7.0 million received includes $2.4 million cash contributions from
developers, together with $4.6 million received as grant funding towards capital projects.
Capital Works Program
Actual capital expenditure (excluding commitments) is $26.0 million against the current full-year
budget of $35.6 million. Committed expenditure totals a further $3.5 million bringing the total of
actual and committed funds to $29.5 million (83% of the total program). Detailed discussion of
progress in the delivery of the capital works program is provided through a separate report by the
Infrastructure Planning & Design Manager.
Page 5 of 12
Section 6
GENERAL COMMITTEE MEETING AGENDA 13 JUNE 2016
Cash Management and Investment Performance
Council funds are invested in accordance with the adopted Investment Policy. Total cash on hand
at the end of May was $60.3 million.
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.
Suncorp Bendigo A1
3% 7% 3%
A2
Westpac
7%
7%
A1+
QTC (QTC)
48% 48%
NAB A1+
23% (Other)
42%
CBA
12%
The actual interest revenue for the month was $151,439 with a weighted average yield of 3.05%
against the industry benchmark (Bloomberg AusBond Bank Bill Index) of 2.29%.
Previous Council Consideration
Nil
Finance & Risk
Monthly financial performance is monitored across all operational areas to ensure Council’s
forecast operating result is achieved and that forecast sustainability ratios are met.
Consultation
External Consultation - Community & Stakeholder
Nil
Internal Consultation
All areas of Council are consulted as part of the regular monitoring of budget performance.
Page 6 of 12
Section 7
GENERAL COMMITTEE MEETING AGENDA 13 JUNE 2016
Departments/Sections Consulted:
x Chief Executive Officer x Community Services x Corporate Services
Executive Officer to the Mayor & CEO Community Facilities x Financial Services
Executive Support Community Development ICT
Libraries & Galleries Procurement & Fleet
Local Laws Property & Facilities
Waste & Environmental Health Revenue Services
x Executive Office x Planning & Infrastructure
Community Engagement Building & Plumbing Services
Customer Service Civil Operations
Economic Development Infrastructure Planning & Design
Governance Planning & Environment
Human Resources Strategic Land Use Planning
Sustainability
Page 7 of 12
Section 8
GENERAL COMMITTEE MEETING AGENDA 13 JUNE 2016
ATTACHMENT 1
Page 8 of 12
GENERAL COMMITTEE MEETING AGENDA 13 JUNE 2016
: ATTACHMENT 1
Noosa Council
Statement of Comprehensive Income
For the Year Ended 30 June 2016
As at 31-May-2016
Current Current
Budget Budget Actual Percentage
2016 YTD YTD Annual Budget
$ $ $ %
Revenue
Recurrent Revenue
Rates, levies and charges 60,463,174 60,463,174 60,592,282 100%
Fees and charges 5,062,480 4,845,943 5,357,322 106%
Dividend income 1,925,140 847,366 847,366 44%
Interest received 4,568,059 3,771,999 4,083,846 89%
Tax equivalents 1,088,812 985,937 985,937 91%
Sale of Goods and Major Services 7,467,019 7,008,524 7,401,444 99%
Sale of Contract & Recoverable Works 15,364 14,084 (8,078) -53%
Rental & Lease Income 1,193,953 1,101,600 1,146,256 96%
Other income 768,408 695,357 1,209,843 157%
Grants, subsidies, contributions and donations 5,656,814 5,119,530 5,129,959 91%
88,209,224 84,853,512 86,746,177 98%
Expenses
Recurrent Expenses
Employee benefits 27,611,129 24,637,862 24,298,898 88%
Materials and services 40,214,614 33,513,863 31,347,227 78%
Finance costs 2,686,315 2,439,539 2,437,025 91%
Depreciation and amortisation 16,630,163 15,244,316 15,292,013 92%
Other expenses 105,993 96,535 105,455 99%
87,248,214 75,932,114 73,480,618 84%
Operating Result 961,011 8,921,398 13,265,558
Capital Revenue
Capital contributions and donations 2,556,631 2,492,834 2,432,648 95%
Grants, subsidies, contributions and donations 4,760,113 4,760,113 4,588,040 96%
Other capital revenue - - -
Total Capital Revenue 7,316,744 7,252,947 7,020,688
Page 8 of 12Section 9
GENERAL COMMITTEE MEETING AGENDA 13 JUNE 2016
ATTACHMENT 2
Page 9 of 12
GENERAL COMMITTEE MEETING AGENDA 13 JUNE 2016
ATTACHMENT 2
Noosa Council
Statement of Financial Position
For the Year Ended 30 June 2016
As at 31-May-2016
Consolidated
“2016YearEnds—“‘S™SOSC;™~™~*~*~*~*~C~C™COCOOOOOOOO™O™~™OCOCOCS
Forecast 2016 YTD 2015
Note $ $ $
Current Assets
Cash and cash equivalents 34,793,450 59,670,594 50,891,174
Trade and other receivables 8,111,648 6,590,327 5,794,388
Inventories 104,038 128,288 104,038
Other current assets 657,006 583,722 3,097,262
43,666,142 66,972,931 59,886,862
Non Current Assets held for sale - - -
Total Current Assets 43,666,142 66,972,931 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 927,977,315 896,935,123 887,078,579
Intangible assets 2,978,146 2,612,929 2,701,457
Total Non Current Assets 1,044,982,437 1,013,575,228 1,003,807,012
Total Assets 1,088,648,579 1,080,548,158 1,063,693,873
Current Liabilities
Trade and other payables 4,382,135 4,613,272 8,100,894
Borrowings 2,854,619 2,677,453 2,633,065
Provisions 5,013,310 5,813,193 4,114,390
Other 380,497 2,744,372 1,082,497
Total Current Liabilities 12,630,561 15,848,291 15,930,845
Non Current Liabilities
Trade and other payables - - -
Borrowings 35,247,498 33,892,480 36,747,480
Provisions 8,210,644 8,239,918 8,194,924
Total Non Current Liabilities 43,458,142 42,132,398 44,942,404
Total Liabilities 56,088,703 57,980,689 60,873,249
Net Community Assets 1,032,559,876 1,022,567,469 1,002,820,624
Community Equity
Asset Revaluation Surplus 36,519,656 14,334,106 14,334,106
Retained Surplus / (Defeciency) - - -
Shire Capital 996,040,220 988,486,518 973,851,849
Current Year Net Earnings - 19,746,844 14,634,670
Total Community Equity 1,032,559,876 1,022,567,469 1,002,820,625
Page 9 of 12Section 10
GENERAL COMMITTEE MEETING AGENDA 13 JUNE 2016
5 CONTRACT LBNA01 "LIQUID WASTE"
DOCUMENT INFORM AT ION
Author Acting Manager Waste and Environmental Health, Ian Florence
Community Services Department
Index ECM/ Tender LBNA01/1516T090 Liquid Waste Collection Services
Attachments Nil
EXECUTIVE SUMMARY
Nil.
RECOMMENDATION
That Council note the report by the Acting Manager Waste and Environmental Health to the
General Committee meeting dated 13 June 2016 and:
A. Award Local Buy Contract LBNA01 “Liquid Waste Collection Services”, to Sutton’s Cleaning
Service for the value of $342,000; and
B. Award Local Buy Contract LBNA01for an initial contract period of 2 years, with the option to
extend for two (2) period/s of up to twelve (12) months.
REPORT
The specification to supply liquid waste collection services within the Shire is a two (2) separable
portion contract.
Separable portion A is for residential/commercial properties where holding and multi-purpose
tanks (effluent) are connected to their sanitary drainage system.
Separable portion B is for Noosa North Shore and Boreen Point camping grounds for septic
and chemical waste/residue; and the 90,000 litre holding tank on the corner of Louis Bazzo
Drive and Laguna Street, Boreen Point.
The incumbent contractor is Sutton’s Cleaning Service (QLD) Pty Ltd. Due to the pending expiry
of the current contract ITQ 1314Q16 and the value of the future contract, a tender was called in
compliance with Council’s Procurement Policy for the future supply of liquid waste collection
services within the Noosa Council area.
Tender Process
A Request for Tender (RFT) was advertised on 7 May 2016 with the RFT closing on 31 May 2016.
Tenders Received
Two (2) tenders were received from suitably qualified companies as detailed below:
1 Sutton’s Cleaning Service
2 AusWaste Environmental Pty Ltd t/as Waste Trans
Page 10 of 12
Section 11
GENERAL COMMITTEE MEETING AGENDA 13 JUNE 2016
Tender Evaluation
Tenders were assessed in accordance with the “Evaluation and Probity Plan Liquid Waste
Collection Services” by two (2) members of the Waste Management Section, one (1) member from
Local Buy, and one (1) member from Planning and Infrastructure. The Noosa Council Workplace
Health and Safety Advisor reviewed all WH&S requirements and documentation.
The following evaluation criteria as used:
Policies
Capability & Experience
Local Content
Pricing.
The highest scoring tender was received from the incumbent contractor Sutton’s Cleaning Service
who scored highest in both the price and non-price evaluation criteria.
Sutton’s Cleaning are a locally owned family operated business located in Cooroy. They have the
capability and capacity to service local businesses and residents within Noosa. Sutton’s also has
a known and respected performance record through past contracts with Noosa Council.
A full copy of the tender evaluation report has been provided in the Councillors Room.
Previous Council Consideration
Nil.
Finance & Risk
At present Council have seventy-seven (77) residential, commercial properties and five (5) Public
amenities that require servicing. A large number of these are currently on a cyclic service frequency
which may range from six (6) to sixteen (16) weekly prior to requiring service.
Separable Portion B is an unknown financial value, with holiday numbers and the waste generated
being the dependant factor. The fluctuation in volumes of effluent generated within peak holiday
periods at Boreen Point are likely to affect service requirements for the holding tank.
There is some unknown financial risk associated with the annual increase in fees and charges for
the disposal of transported liquid waste set by Unitywater.
When the tender documents were prepared the total number of properties and their respective
service frequency was presented and tenderers have priced on this information. Fluctuations in
these current total numbers may occur during the term of Contract.
The value of the contract for the initial two year period is $342,000.
Consultation
External Consultation - Community & Stakeholder
The tender documents and tender process was completed in consultation and in partnership with
Local Buy.
Page 11 of 12
Section 12
GENERAL COMMITTEE MEETING AGENDA 13 JUNE 2016
Internal Consultation
The tender assessment team comprised of the following Council staff:
A/Manager of Waste and Environmental Health.
Waste Management Officer.
Project Manager, Planning and Infrastructure.
Workplace Health Safety Advisor.
The following Departments/Sections were consulted during the tender process.
Departments/Sections Consulted:
Chief Executive Officer X Community Services X Corporate Services
Executive Officer to the Mayor & CEO Community Facilities X Financial Services
Executive Support Community Development ICT
Libraries & Galleries X Procurement & Fleet
Local Laws Property & Facilities
X Waste & Environmental Health Revenue Services
X Executive Office X Planning & Infrastructure
Community Engagement Building & Plumbing Services
Customer Service Civil Operations
Economic Development Infrastructure Planning & Design
Governance Planning & Environment
X Human Resources Strategic Land Use Planning
Sustainability
Page 12 of 12