2018-06-27 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                                  27 JUNE 2018


     Scenarios                              Present Value Cost          Cost Per Ratepayer
     Base case (natural regeneration)       $1,880,422                  $62.06
     Assisted regeneration                  $2,137,470                  $70.55
     Reconstruction                         $3,374,609                  $111.38

     Note 1:   Represents the total potential costs over the 5-year rehabilitation period.
     Note 2:   For modelling purposes, the additional contribution by NPA towards rehabilitation (up to
               $125,000 p.a. for 5 years totalling $625,000 plus inflation) has been excluded. The
               payment of these funds by NPA would reduce the above costs by the equivalent
               contribution over the 5-year period for each scenario.
     Note 3:   For modelling purposes, potential grant funds to undertake remediation have been
               excluded. Any grant funds received would reduce the above costs. Landcare have already
               sourced one significant grant.
     Note 4:   The cost per ratepayer is the total cost over 5 years, not the annual cost and represents
               the worst case scenario given notes 2 and 3 above.

   A management plan will be required for the rehabilitation of the lands within the proposed
     Conservation Park and that will be one of the issues managed through the Transition
     Committee as proposed in the MOU and reaffirmed in the State Deed (refer Schedule 3).
     There are also practical issues that will need to be addressed by the Transition Committee
     such as an area of immature pine trees on the eastern edge of Ringtail block that will not
     be of merchantable quality within the 5-year time frame.
   It is also likely that HQP may finish their harvest of their pine (particularly at Yurol) before
     the 5-year timeframe. HQP harvest operations will be within the planted pine areas and not
     any pine wildings that have emerged in fallow or buffer areas. HQP and Council have
     discussed how Council may wish to access some of the existing PLA areas in the first 5
     years (particularly the recently fallow PLA pine areas) in the event that we are able to
     secure external funding for rehabilitation works thereby reducing the rehabilitation costs. It
     was agreed that these matters can be managed through the Transition Committee process.

4.   Project benefits
     An assessment of the environmental values of the Yurol and Ringtail Forests was provided
     in the report to Council dated 13 October, 2017. In summary, the conservation and
     protection of the Yurol and Ringtail Forests will help protect significant Endangered and Of
     Concern Regional Ecosystems and a number of specific threatened fauna and flora
     species. Rehabilitating the former pine plantation will reinstate vegetation to help support
     the local threatened koala population and provide additional habitat for a diverse range of
     flora and fauna species.



5.   Financial Contribution by NPA
   NPA have agreed to fund one-third of the acquisition costs and also to make a contribution
     towards the rehabilitation of the PLA pine area once Council becomes trustee of the
     Conservation Park.
   They propose to provide this funding over a period of time. For the acquisition component,
     they will provide $541,666 upon the signing of the agreement payable direct to DES with
     Council to pay the balance to DES on their behalf in the sum of $625,000. This amount is
     repayable by NPA in five instalments of $125,000 per year commencing 12 months after
     the date of signing of the State Deed.




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