2018-06-27 Special Meeting Agenda

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       ATTACHMENT 4

        UPDATED PROJECT RISK REGISTER: YUROL AND RINGTAIL FOREST PROPOSAL DATE OF REVIEW 1 JUNE 2018
Risk   Description of Risk and impact on project                       Main               Existing Controls                                                                                                                                                      Consequence level Likelihood                Risk rating           Risk               Date of            Future treatment required / Action items                                                                                                  Expected timeline for   Risk owner
No.    (Insert description of identified risk, triggers, cause and     Consequence        (briefly outline existing controls currently in place to mitigate risk (if any))                                                                                       (identify using matrix level                (enter rating using   movement           previous           (briefly outline future treatment to reduce risk (if any) to an acceptable level) and identify expectations that treatment will have on   future treatment/ or    (identify position within branch
       potential impact on project objectives. Consider also risk of   Category                                                                                                                                                                                  for existing controls)   (identify using    the matrix by         (movement in       review             risk)                                                                                                                                     next review             responsible for managing risk
       failing to pursue an identified opportunity, if any)                                                                                                                                                                                                                               matrix for         reviewing             risk rating from                                                                                                                                                                                        and treatment)
                                                                       (select for
                                                                       identified risk)                                                                                                                                                                                                   existing controls) consequence x         previous
                                                                                                                                                                                                                                                                                                             likelihood)
                                                                                                                                                                                                                                                                                                                                   review)

  1    Political will at the State Government level                    Project            Risk that if project momentum is not maintained issues may arise that impact State Government's ability and willingness to proceed. Also, significant delay            Medium                   Possible           M53                   Decrease                      Oct-17 Continue to progress all aspects of the project in Council's control / responsibilities to ensure Council is ready to                      Jul-18                  Council / CEO
       resulting in delay                                              deliverables       may also reduce will of HQP.                                                                                                                                                                                                                                                  proceed as soon as possible.
       Delay associated with internal progress and
       approvals at the State Govt level could negatively                                                                                                                                                                                                                                                                                                                The signing of the formal MOU in October 2017 provides some security for the project (whilst acknowledging it is
       impact the will of project parties.                                                                                                                                                                                                                                                                                                                               not legally binding).

       Risk that long delay could impact on grant funding                                                                                                                                                                                                                                                                                                                The sooner parties can sign off a Funding Deed and make media releases the more difficult it will be from a
       opportunties if independent parties are ready to go.                                                                                                                                                                                                                                                                                                              political perspective for any Govt to stop the project.




  2    Financial risks associated with reliance on NPA      Financial                     Risks associated with this component of the agreement have been identified and included in financial modelling scenarios. Financial analysis of NPA                    Major                    Possible           H73                   No change                     Oct-17 Confirmation from NPA that its members are formally on-board with the project would provide some comfort that                              Jul-18                  Project Group
       for future funding                                                                 financial statements have been undertaken, which indicate contributions beyond the initial $500K are not assured.                                                                                                                                                             the organisation is committed to the long term nature of this project, which will utilise a significant portion of its
       Inherent risks with entering into agreement with NFP                                                                                                                                                                                                                                                                                                             finances.
       organisation that is high value and extends over                                   Formal draft funding agreement has been drafted by Council's Lawyers for assessment. Despite this, Council must be aware that when signing off this project
       multiple financial years.                                                          that financial contributions of NPA beyond the initial $500K to the State are not certain and options for Council to enforce funding agreement are limited.                                                                                                                    Application to be lodged for State Treasurer approval for Council to enter into an agreement with NPA (Statutory
                                                                                                                                                                                                                                                                                                                                                                         Bodies Finanancil Arrangements Act - Type 1 Financial Arrangement) through the the State Department of
                                                                                          Approval is also required from the State Treasurer under the Statutory Bodies Financial Arrangements Act for Council to enter into the agreement with NPA.                                                                                                                     Infrastructure, Local Government and Planning.



  3    Failure to address Native Title implications and                Project            Legal advice has confirmed that Native Title is not extinguished over the project area. Accordingly, it is consider that the area will form part of regional           Medium                   Possible           M52                   No change                     Oct-17 Future discussions with Indigenous Groups and State Departments required to determine desired use for the site Ongoing                                             Project Group and
       other future land use matters including failure to              deliverables       Indigenous Land Use Agreement negotiations. These are not considered to be high impact on the area.                                                                                                                                                                           once protected. E.g. Mountain Biking, Indigenous Food trails etc.                                                                                                  Transition Committee
       identify opportunities to promote responsible
       community use of the area                                                                                                                                                                                                                                                                                                                                         PEO to liaise with National Parks re future recreational use particularly in relation to Noosa Trail network and
       Failure to identify and promote opportunities for                                                                                                                                                                                                                                                                                                                 Noosa Bird Trail.
       responsible Community Use of the project area
       reduce value to the Community of the project                                                                                                                                                                                                                                                                                                                      Draft management plan for site will need to be developed and should involve community consultation etc. and
                                                                                                                                                                                                                                                                                                                                                                         link with Council's Sport and Recreation Plan.




  4    Risk of cost shifting from State Government to                  Financial /        From negotiations undertaken between State, Council, NPA and HQP it is confirmed that but for the financial contribution of Council and NPA for the project            Medium                   Possible           M52                   Decrease                      Oct-17 Education to the community via media release etc. if formal signoff is obtain to proceed should be undertaken to                           Ongoing                 Project Group
       Council or perceptions of cost shifting - Given                 Reputational       the project would not proceed.                                                                                                                                                                                                                                                counter any negative perceptions.
       that the ultimate aim of the project is for project land
       to be transferred to National Park there is a risk of                              The project accelerates the protection of the land, which otherwise may not be protected for a significant amount of time.
       the perception that Council via taking on the
       responsibility for rehabilitation is cost shifting by the
       State Government to support its National Park
       Strategy.



  5    Physical Environmental Risks impacting on                       Environmental      Risk of bushfires, drought, pest etc. could impact significantly on Council's Rehab timeline and effectiveness. Limited controls available to reduce this risk         Medium                   Possible           M52                   Decrease                      Oct-17 Ensure fire trails are maintained throughout life of the project and rehab is monitored closely to maximise                                Ongoing                 Environmental Services/
       Council's Rehab                                                                    however, it should be noted for completeness. Considered that Council's active rehab obligations end at 5 years after becoming trustee.                                                                                                                                       environmental benefits.                                                                                                                                            Parks and Natural Areas.

       Risk of environmental factors on rehab component                                   Also considered that such events are part of the natural cycle and difficult to avoid.
       timelines.




  6    Desired Koala Outcomes associated with the                      Environmental /    Initial investigation indicate that project area is in the regional Koala corridor and interest on funds held in trust for 5 years will be utilised for Koala projects in Medium                Possible           M52                   No change                     Oct-17 It is considered important that Koala research projects are commenced early in the project so that benefits can                            Ongoing                 Principal Environment
       Project are not achieved                                        Reputational       the area.                                                                                                                                                                                                                                                                     be realised as soon as possible.                                                                                                                                   Officer / Transition
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Committee
       Given the Koala focus of this project there is a high                                                                                                                                                                                                                                                                                                             Noted that the State has proposed to utilise interest earned on partner funds held in trust to be used only for
       reputational risk for project parties if Koala's are not                                                                                                                                                                                                                                                                                                          Koala related grant projects in the Noosa area.
       benefited by the rehab and protection of the land.
                                                                                                                                                                                                                                                                                                                                                                        Education component with respect to management community expectations is also important. Note that the
  7    Internal Resources Required to manage addition Financial                           It is anticipated that unplanned management events will occur such as indiscriminate access, camping, bushfire and rubbish disposal which will all place               Medium                   Possible           M52                   No change                     Oct-17 Ongoing monitoring once tenure transitions.                                                                                                Ongoing                 Project Group
       Conservation Park by Council are underestimated                                    additional responsibilities on environment services/natural areas staff. However, impact on Environmental Team and Parks and Natural Areas have been
       Failing to accurately identify impact of managing the                              included in Council's costs estimates peer reviewed by LandCare and included in financial modelling. Local laws have confirmed limited impact on                                                                                                                               Additional plannning required from Environmental Services Team to ensure resrouces and capacity is in place to
       project area on the Environment and Parks and                                      resources as a result of expanding area of responsibility to include the additional area within responsibility.                                                                                                                                                                participate in transition committee and associated matters durign 18/19. Needs to be included in branch plan etc.
       Natural Areas teams could put pressure on current
       capacity, which may lead to request for further
       resources.

  8    Council and NPA reputational risks                                                 Political nous and management from CEO and Council regarding managing community expectations and setting up clear boundaries regarding extent of                       Medium                   Possible           M52                   No change                     Oct-17 Appropriate media statements pending project proceeding.                                                                                   Nov-17                  CEO/Council
       Political / Reputational Risk associated with Noosa                                project parties responsibilities and relationship of transactions.
       Council being part of a significant multi party
       agreement with Noosa Parks Association, which                                      Formal MOU and subsequent agreements will be transparent and available for publication.
       involves significant long term commitment.




  9    Confidentiality / Media Attention                                                  It was agreed at meeting at DEHP on 9 June 2017 that no parties would contact the media until further notice. State Government would coordinate a draft                Medium                   Possible           M52                   No change                     Oct-17 Project Parties and State Government to prepare media release in due course in accordance with agreed MOU                                  Sep-17                  CEO/Council/Officers
       Given the large number of parties involved (some                                   media release in due course to be signed off by all project parties before release.                                                                                                                                                                                           and agreement                                                                                                                                                      involved in the project
       with Commercial Interests) and the large number of
       people/stakeholders who this project could impact on                               Initial Council approval meeting is being held confidentially.
       it is important that media is not informed about the
       project until such time that parties are in some sort of
 10    Failure to identify opportunities to reduce rehab Financial /                      Council Project team and Transition Committee must explore opportunities to reduce costs further.                                                                      Medium                   Possible           M52                   Decrease                      Oct-17 Opportunities to reduce costs must continued to be explored throughout the project. Further research re Carbon                             Ongoing                 Project Group
       costs and maximise value of the project                  Reputational                                                                                                                                                                                                                                                                                            offset opportunities, third party not for profit assistance e.g. land care, green army etc., Koala sanctuaries.
       Risk of not identifying/exploring opportunities to                                 Council must ensure that opportunities to reduce rehab costs are explored well in advance of commence formal rehabilitation e.g. environmental grants, good
       reduce rehab costs to Council through the life of the                              Corporate Citizen projects etc.                                                                                                                                                                                                                                                Future federal funding opportunities may be available such as under 20 Million Trees program.
       project leads to negative financial consequences.
                                                                                          Initial investigations have been undertaken with respect to potential carbon and environmental offset opportunities for the project.




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Page 37 of 65