2021-02-09 Services & Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                               9 FEBRUARY 2021


Finance
There is sufficient budget allocation within the current capital works program for the
recommended option. $700,000 is allocated in the Capital Works 2020/21 program to fund the
Mobile Library replacement project. Market research and detailed project scoping have estimated
a total capital project budget of approximately $630,000 is required for the proposed hybrid
model covering the new vehicle, kiosks, kiosk shelters, utilities, new signage and ancillary project
costs. The project would be expended over two financial years through to 21/22 and would be
profiled once the major tender processes were complete.
There may not be sufficient funding for an electric vehicle option as part of Option 3 however
both the economic and technical feasibility need to be investigated through the procurement
processes.
There is not sufficient funding in the current capital works budget allocation to implement Option
2 which would require the construction of a new semi-trailer vehicle ($1.2m capital purchase
cost) and other ancillary capital costs particularly if new stops had to be established where
existing stops could not be accessed e.g. Peregian Beach.

The current annual operational budget for the mobile library is $329,274.

   Financial Statement     2020/21 Operating Expenses

Employee Costs                       $130,556

Fleet Costs                          $138,024

Internal Charges                     $39,094

Materials & Services                 $21,600

There is sufficient funding in the 2020/21 Libraries operational budget to fund the continuing
operation of Mobile Library Services to June 2021 and it is proposed to include the same amount
in the draft 21/22 budget to cover the remaining operation of the existing model and the
commencement of the new model. Based on market research it is likely that the new model will
realise a saving in annual operational costs particularly in fleet costs. Once the final operational
budget of the new model is determined through the procurement processes, the revised budget
will be included in the 2021/22 budget review processes.
Provided the Mobile Library can continue safely in service, Council aims for this vehicle to remain
operational until late 2021 when the alternate model of service is ready to launch. If safety issues
arise with the Mobile Library rendering it inoperable, the issues would need to be resolved or if it
wasn’t financially prudent to undertake the repairs the Mobile Library may need to be retired
early. Fleet are working to ensure work is undertaken to maintain the vehicle to achieve the late
2021 target.

Risks & Opportunities
The 2018 Reforms to the National Heavy Vehicle Register Chain of Responsibility Laws place
significant accountability and responsibility on Council to ensure the safety of the operators and
risks are adequately managed. Replacing the service with a similar sized vehicle would mean it
remains very challenging for Council to comply with these legislative requirements.
If Council does not progress a replacement plan for the current Mobile Library, there will be no
outreach library service at the end of 2021. As the service is highly valued in the community,
cessation of services would negatively impact on community members and generate high levels
of complaint.
However, the recommended model will provide Council with the unique opportunity to reshape
delivery of outreach library services through innovative technologies and vehicles with renewable
energy powered options.

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