2018-06-27 Special Meeting Agenda

 11   Inadequate Concept selection                                Financial /    Confirmation that project aligns with Council's Corporate Plan Theme - The Noosa Environment -" Our Environment is protected, enhanced and valued by our Medium           Unlikely   M48   Decrease   Oct-17 Once project details have been finalised and approved by Council and project parties have finalised MOU,           Nov-17      Project Group
      Risk that initial pre-feasibility and feasibility stages of Reputational   Community" "The Noosa Natural Environment is protected and enhanced".                                                                                                                                        announcements can be made to the public highlight the environmental significance and value of this project in
      the project were not adequately investigated, which                                                                                                                                                                                                                                     accordance with agreed project protocols.
      may lead to the organisation becoming bound to a                           Extensive research has been undertaken by a number of project parties to ensure that Project concept aligns with desired outcomes - permanent protection
      long term project that may not be aligned to strategy                      of the project area into National Park for Community benefit. Investigations include;
      and produce desired outcomes. (risk include,
      financial, reputational)                                                   1. Recommendations from the DEHP regarding the natural values and existing uses of Ringtail and Yurol State Forests.
                                                                                 2. Preliminary guidelines developed by DEHP for restoring plantation areas of Yurol and Ringtail State Forests.
                                                                                 3. Environmental Reports from DEHP of project area confirming the environmental value of the project area if protected.
                                                                                 4. Internal Council analysis by Environmental Officers and Parks and Natural Areas Coordinator also confirm the environmental value and significance of the
                                                                                 project.
                                                                                 5. Environment Levy Working Group have confirmed the environmental merits of the project.

                                                                                 The above investigations confirm that the project from an environmental perspective would align to the objectives of the Environment Levy Policy and
                                                                                 Council's Environmental Strategic Values.

                                                                                 Project of regional significance - linking the National Park Corridor. In terms of financial, environmental and community value - the vast size of the project
                                                                                 area that would be protected as part of the project is much greater than recent acquisitions under the environment levy of Johns' landing (40Ha) $2.2M and
                                                                                 Franz Land (80ha) $2.7M. Project area - PLA 1,482 HA and State Forest 1,100HA to transition to National Park. End game is that project area is permanently
                                                                                 protected under National Park. Total cost to be divided between State, Council and NPA to pay HQP to walk away from all plantations in the area within 5
                                                                                 years is $3.5M. Cost comparisons of this project with previous per HA acquisitions under the Environment levy indicate this project provides great value for
                                                                                 use of the environment levy in terms of the amount of land permanently protected against costs.

                                                                                 But for this project, 2409Ha of land with regional National Park connectivity would remain exposed to future logging for a significant amount of time.




 12   Project fails to meet community expectations - As Reputational                                                                                                                                                                              Medium   Unlikely   M48   Decrease   Oct-17                                                                                                                    Dec-17      Principal Environment
      this is a new project concept in respect of use of                                                                                                                                                                                                                                                                                                                                                                     Officer.
      Environment Levy Funding there is the possibility                          Preliminary project briefings have been presented to environmental levy working group, LT and Council. Council has included 'Pursue potential Yurol and                                                        Education component regarding rehab and management plan for the area will need to be developed in due
      that project outcomes will not meet community                              Ringtail Forest Environmental Project' in the 17/18 Operational Plan.                                                                                                                                          course should project proceed.
      expectations.
                                                                                 It is noted that project aligns with Council's sustainability principles, particularly in terms of environmental opportunities. Acknowledge that the Noosa
                                                                                 Community is in favour of environmental protection of the Region given its environmental, community and economic benefits.




 13   Tenure pathways and certainty for project parties Financial / Project      Legal advice has been obtained from both Council's Lawyers and Crown Law, which have confirmed transactional documents can be drafted that are                   Medium   Unlikely   M48   Decrease   Oct-17 Formally signing of MOU by parties and subsequent binding Legal agreement (including NPA funding agreement) Nov-17             CEO/Principal
      cannot be obtained                                   Deliverables          enforceable and will protect various parties interests. At the end of the day, if Council's tenure requirements are not by the sunset date, which is set at 7                                                needs to be approved and signed off before funds are transferred.                                                              Environment
      Failure to obtain binding and enforceable agreement,                       years, contribution funds will be returned to Council.                                                                                                                                                                                                                                                                                      Officer/Governance
      which suits all parties interest could result in                                                                                                                                                                                                                                                                                                                                                                       Advisor
      significant financial loss and reputational damage.                        Whilst funds would be returned to Council, significant resources invested in the project in terms of staff etc. would not be recouped.




 14   Financial modelling for rehabilitation                 Project             Principal Environment Officer and other Team members have undertaken investigations in respect of future environmental rehabilitation for the site based on Medium        Possible   M32   Decrease   Oct-17                                                                                                                    Nov-17      Principal Environment
      It is critical that data provided to inform financial  deliverables /      site inspections, comparable national examples, liaising with relevant experts and State Departments. DEHP studies can be used to inform estimates.                                                            There is reasonable assurance based on Council's Due Diligence, LandCare Peer Review and information from                    Officer.
      modelling is accurate and research based. Failing to Finance /                                                                                                                                                                                                                            State that rehab estimates are reliable.
      have accurate data may result in significant financial Reputational        Council has engaged Landcare to conduct a peer review of the Principal Environment Officer's rehab assessments to provide assurance on estimated rehab
      costs and reputational damage to Council.                                  funding contributions put forward by Council.                                                                                                                                                                  Additional control will be to ensure that formal legal agreement caps Council's rehab requirements at 5 years.

                                                                                 Obligations have also been included in the draft MOU that Council's active rehab obligations and responsibilities cease at 5 years as Trustee of Conservation
                                                                                 Park.




                                                                                                                                                                                                                                                                                       Oct-17
Completed by - Project Group, 1 June 2018




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