2018-06-27 Special Meeting Agenda

SPECIAL MEETING AGENDA                                                             27 JUNE 2018


It is expected that some technical sub-groups will also be necessary to plan and advise on
matters such as the management plan development and the rehabilitation component of the
project. The CEO will determine Council’s representatives on any such groups.


Previous Council Consideration
Special Meeting 13 October, 2017 page 3, item 1
That Council note the report by the Chief Executive Officer to the Special Meeting dated 13
October 2017 and the further report by the Chief Executive Officer to the Special Meeting dated
13 October 2017 containing updated information regarding a proposed hinterland environmental
conservation project and:
A.   Note the proposed environmental benefits, risks and costs associated with the proposed
     project; and
B.   Approve the project “in principle” and authorise the Chief Executive Officer to proceed with
     the Approved Actions as set out in the further report.

Finance
As advised in the report to Council dated 13 October, 2017 Financial modelling has been
completed in accordance with Council’s ‘Use of Project Decision Framework Toolkit’
Organisational Policy to ensure that an informed decision can be made relating to the potential
significant ongoing investment of ratepayer funds in this project.

It is proposed that the full cost of the project will be funded from a combination of 2018/19
Environment Levy revenue and restricted cash reserve funds. Council can comfortably fund the
project from the Environment Levy fund and provision has been made in the modelling for a
range of contingency situations.

Risks - Financial
As with any major project there are risks associated with this proposal. The current risk register
updated June 2018 is provided at Attachment 4.
A summary of the key risks is outline below:
   One of the main risks is if the State does not honour the commitment to convert the PLA
     areas to protected tenure status of Conservation Park. The State Deed provides that the
     contributions by Council and NPA will be held in a Treasury Account and are not to be
     drawn by DES until the Conservation Park tenure has been put in place over the pine
     harvest areas. If this has not occurred within seven (7) years after signing of the State
     Deed, the monies are to be returned to both parties. In the meantime, interest on those
     funds will be applied to Koala conservation projects in the Noosa Shire with the State
     required to consult with Noosa Council in identifying appropriate projects.
   NPA’s funding obligations under this project will be a large impost on that organisation’s
     finances for a number of years. An analysis of NPA’s audited financial statements for the
     last three financial years has been undertaken by the CEO as part of the due diligence
     process and it is clear that they can contribute the initial sum of $541,666 but that future
     income is largely reliant on revenue from two current leases from the State. A reduction in
     either of those revenue streams is a potential risk.
   The arrangement with NPA is subject to approval by the Treasurer under the Statutory
     Bodies Financial Arrangements Act & Regulations. This risk is quite low given the State is
     a party to the overall project. This risk will also be managed by waiting for SBFA approval
     before the agreements are signed.


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