2017-02-16 Ordinary Meeting Agenda

ORDINARY MEETING AGENDA                                                        16 FEBRUARY 2017


Finance & Risk

Budget

Council has allocated the following funds in the 2016/17 capital budget for the first stage of the
Rufous St Master Plan project:

Design and development             $90,939
Digital Hub construction        $1,000,000
Civil works                       $955,000
Total                           $2,045,939

A 2017/18 capital budget for approximately $2 million will be submitted for consideration to
complete the construction of the Digital Hub (given the timing of construction across financial
years), with $1 million of the cost funded by the already approved State Government LGIP grant.

Financial implications of the BBRF funding request

The current quantity surveyor’s cost to expand the Digital Hub complex, relocate the Peregian
Community House and complete the landscaping works for Peregian Green is estimated at
$4.9 million, which brings the total estimated cost to construct the approved Master Plan works to
$9 million (excluding land purchase and design costs.)

The Rufous St Civil works of $955,000 are ineligible for BBRF funding which brings the estimated
costs of eligible capital works to approximately $8 million. It is therefore proposed to seek funding
from the BBRF for $4 million (i.e. 50% of the eligible costs).

Given that the State Government grant can be counted towards Council’s 50% contribution to the
project, and if successful with its $4 million BBRF funding application, Council would need to
provide an estimated 2018/19 capital budget of $5 million (with $4 million funded by BBRF and
the balance of $1 million funded by Council) to meet its obligations under the BBRF grant.

Risk

The timing of the delivery of the master plan will need to be reconsidered should Council be
unsuccessful with the BBRF funding application given the financial implications for the general
rate.

Consultation

External Consultation - Community & Stakeholder

Darrell Edwards, CEO, Regional Development Australia, Sunshine Coast Inc
Graham Lukins Partnership Pty Ltd Quantity Surveyors

Internal Consultation

Rufous St Project Control Group
Cr Frank Wilkie
Director Community Services
Director Corporate Services
Procurement and Fleet Manager
Economic Development Manager
Project Manager, Planning and Infrastructure
Property Advisor


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