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2021-02-04 Special Meeting Agenda
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AGENDA
Special Meeting
Thursday, 4 February 2021
commencing at 9.30am
Council Chambers, 9 Pelican Street, Tewantin
Crs Clare Stewart (Chair), Karen Finzel, Joe Jurisevic, Amelia Lorentson,
Brian Stockwell, Tom Wegener, Frank Wilkie
“Noosa Shire – different by nature”
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Section 2
SPECIAL MEETING AGENDA 4 FEBRUARY 2021
TABLE OF CONTENTS
ITEM PAGE
ATTENDANCE & APOLOGIES -
REPORTS 3
1 2021/22 NOOSA COUNCIL BUDGET – SCENE SETTING 3
2 1920T138 DESIGN, CONSTRUCT AND MAINTAIN HINTERLAND ADVENTURE
PLAYGROUND CONTRACT AWARD 5
MEETING CLOSURE -
Page 2 of 11
Section 3
SPECIAL MEETING AGENDA 4 FEBRUARY 2021
REPORTS
1 2021/22 NOOSA COUNCIL BUDGET – SCENE SETTING
Author Director Corporate Services, Michael Shave
Corporate Services Department
Index ECM/ 69.05 – Corporate Services
Attachments Nil
EXECUTIVE SUMMARY
Not applicable.
RECOMMENDATION
That Council note the report by the Director Corporate Services to the Special Meeting dated 4
February 2021 and note the presentations provided at the meeting by the Chief Executive Officer
and Director Corporate Services that set the scene for the beginning of the 2021/22 Council budget
process.
REPORT
Under sections 104 and 107A of the Local Government Act 2009 and section 170 of the Local
Government Regulation 2012, Council is required to adopt, for each financial year, after 31 May
before the financial year and before 1 August in the financial year, a budget and revenue statement.
Council’s budget process runs from November through to June each year and is a significant
annual project for Council, requiring considerable organisational and Councillor input to ensure
that budget decisions align with Corporate Plan objectives, Operational Plan targets and Financial
Sustainability Policy requirements.
As part of the annual budget process the Chief Executive Officer and key staff provide a scene
setting overview for Councillors that provides context for future important budget decision making.
Given the implications of COVID-19 on Council’s 2020/21 budget and potential implications for the
2021/22 budget, and as part of Council’s commencement of its 2021/22 budget engagement
process, the scene setting presentation will be considered as part of the Special Meeting and live
streamed for resident and ratepayer benefit.
Previous Council Consideration
Nil.
Finance
Nil.
Page 3 of 11
Section 4
SPECIAL MEETING AGENDA 4 FEBRUARY 2021
Risks & Opportunities
Risks
Reputational – Council has progressed down the path of consultation on future Council budgets.
Community trust will likely be eroded should Council determine to abandon future budget
consultation.
Priorities – Engagement processes with the community can achieve sub optimal outcomes and
priority misalignment should wide engagement not occur as intended.
Opportunities
A budget consultation process is an opportunity to understand the spending priorities of our
community and ensures that effective engagement continues to retain community confidence in
Council processes and decision making.
Consultation
External Consultation - Community & Stakeholder
Nil.
Internal Consultation
Chief Executive Officer.
Departments/Sections Consulted:
X Chief Executive Officer Community Services X Corporate Services
Executive Officer Director X Director
Executive Support Community Development Financial Services
Community Facilities ICT
Libraries & Galleries Procurement & Fleet
Local Laws Property
Waste & Environmental Health Revenue Services
Executive Services Environment & Sustainable Development Infrastructure Services
Director Director Director
Community Engagement Building & Plumbing Services Asset Management
Customer Service Development Assessment Buildings and Facilities
Governance Economic Development Civil Operations
People and Culture Environmental Services Disaster Management
Strategic Land Use Planning Infrastructure Planning,
Design and Delivery
Page 4 of 11
Section 5
SPECIAL MEETING AGENDA 4 FEBRUARY 2021
2 1920T138 DESIGN, CONSTRUCT AND MAINTAIN HINTERLAND ADVENTURE
PLAYGROUND CONTRACT AWARD
Author Project Officer, Paul Brennan
Infrastructure Services Department
Index ECM / Projects & Contracts (T1) / 1920T138 Design, Construct and Maintain
Hinterland Adventure Playground Contract Award / Council Reports
ECM / Subject / Contracting / Parks & Reserves
Attachments Nil
EXECUTIVE SUMMARY
Not applicable.
RECOMMENDATION
That Council note the report by the Project Officer to the Special Meeting dated 4 February 2021
and award a tender for the Design, Construction and Maintenance of the Hinterland Adventure
Playground to Aspect Contractors for the lump sum price of $3,761,256.59 excluding GST.
REPORT
1. Tender Background and Procurement Process adopted for Project Delivery of the
Hinterland Adventure Playground
The project scope, design and operational costs for the Hinterland Adventure Playground were all
assessed as high-risk from the perspective of receiving pricing from suitably experienced
contractors that would meet the available budget, as well as defining reasonable ongoing costs for
maintaining the site once it is opened (refer discussion in previous Council Report from August
2019). Project staff, in conjunction with Procurement staff and Council-appointed legal consultants,
subsequently developed a procurement model for the project delivery which sought to minimise
Council’s financial risk and provide maximum flexibility when finalising costs and contract
negotiation.
The following process was adopted:
Step 1. Request for Expression of Interest (EOI) in accordance with the Local Government Act
2009 via the Vendorpanel Marketplace system from the marketplace for the project
delivery (approved by Council in August 2019);
Step 2. Develop a select tender list of appropriately qualified tenderers following the EOI
evaluation;
Step 3. Request for Design Construction Maintenance (DCM) Tender in accordance with the
Local Government Act 2009 via the Vendorpanel Marketplace system from the select
list of tenderers;
Step 4. Select a preferred contractor following the Tender assessment;
Step 5. Award an Early Contractor Involvement (ECI) contract with preferred DCM contractor
to finalise scope and price;
Step 6. Accept final scope and price and closeout the ECI contract;
Step 7. Council awards DCM Tender to preferred contractor based on final scope and price
(this report).
Page 5 of 11
Section 6
SPECIAL MEETING AGENDA 4 FEBRUARY 2021
2. Early Contractor Involvement (ECI) process
Whilst the above process is broadly familiar under current Council procurement procedures, the
ECI process is relatively new. It was added as an additional step for contractually allowing formal
negotiations to occur with a preferred tenderer, in the event the initial pricing exceeded the budget.
The process adopts an open-book approach, with all elements of the design, scope and pricing up
for review. The intent is to seek, prior to awarding the construction contract, a level of contractor
involvement such that they work closely with Council and the lead design consultants in order to
finalise a scope of works that suits the available budget, still meets Council’s intentions for the
project, and leverages the preferred contractor’s expertise and experience on projects of this
nature. There is an added advantage in building an ongoing relationship with the contractor and
agreeing on key elements for the project delivery prior to construction award, helping to promote a
deeper understanding of the delivery requirements from all contractual parties.
It is important to note that no commitment is made on either party for awarding the subsequent
construction contract, and that the process may end at any stage without prejudice and cost or
damages claims if negotiations cannot be finalised. Also, by adding responsibility for design
completion into the follow-up contract, it commits the contractor into documenting the final scope
of works for the revised price.
3. Select Design, Construction and Maintenance (DCM) Tender
A select list of six (6) tenderers were invited to submit tenders for the DCM, following an Expression
of Interest process that received nine (9) submissions. The invitation to tender was released via
VendorPanel on 21 February 2020. The tender closed on 15 April 2020 which was an extension to
the original closing date - this was granted by Council following feedback that tenderers were
struggling to compile timely submissions due to operational impacts from the initial lockdown of
COVID-19. Three (3) conforming tenders were received.
The tender evaluation panel undertook an assessment of the tender submissions from the following
respondents, which are listed in alphabetical order:
1) Aspect Contractors;
2) Naturform Pty Ltd;
3) Eureka Landscapes Pty Ltd.
The tenders were evaluated using the following criteria:
• Design and Construct Capabilities and Experience;
• Stakeholder Engagement;
• Quality Management Systems;
• Workplace Health and Safety Systems;
• Local Economy, and;
• Price.
The three selected DCM tender prices initially submitted were $5,349,313.11 (Aspect Contractors),
$6,004,397.38 (Naturform Pty Ltd) and $6,516,795.26 (Eureka Landscapes Pty Ltd) excluding
GST.
Page 6 of 11
Section 7
SPECIAL MEETING AGENDA 4 FEBRUARY 2021
4. Design, Construction and Maintenance (DCM) Tender Assessment and Early
Contractor Involvement (ECI) Award
The tender evaluation team finalised their tender evaluations using the above criteria and following
further clarifications with Aspect Contractors, they were subsequently awarded an ECI contract to
review the scope and pricing. The tender submission from Aspect Contractors was the most
favourable as they have significant previous experience with construction of similar projects, a
strong track record with Council, are highly capable, and have the necessary resources to meet
Council’s program to complete these works by December 2021. Encouragingly, they also have
experience with the ECI process, having undertaken the same process on similar projects.
The ECI process was undertaken with Aspect Contractors from July 2020 through to December,
with Aspect Contractors submitting a final price of $3,761,256.59 excluding GST. Council considers
this price offers the best value for money against the revised scope of works.
5. Development Applications and Approval Conditions
Council approved Development Applications (DAs) for the playground site (MCU20/0013) and
adjacent Lower Mill area carpark (MCU20/0012) at its Special Meeting on 27 January 2021. A
number of conditions were imposed on the approvals which project staff are working through, in
order to assess the impact of these on the current scope and budget along with the appropriate
actions that will need to be taken in finalising the construction scope of works and associated costs.
It should be assumed a number of elements will require some additional funding that has yet to be
identified.
6. Programme and Next Steps
Pending Council approval, Aspect Contractors have indicatively proposed a construction schedule
that completes the site by December 2021, inclusive of initial design activities, wet weather
allowances, and lead times for supply of certain items and defects rectification. There is a targeted
commencement of works in March-April 2021 with practical completion to be achieved at the
beginning of December 2021. It should be noted that this schedule is yet to be finalised and is
subject to a number of factors, including design finalisation, final assessment on the development
application approval conditions, grant-funding requirements and materials/stock availability (refer
Risks and Opportunities below).
7. Construction Management and Inspections
Under the Design-Construct delivery model, Council will maintain the overall project management
role. This will be supported by Council’s Contracts and Project Superintendent. Specialist
architectural and engineering consultants, appointed by the contractor, will progressively inspect
the works to ensure project objectives and approval conditions are met. In addition some specific
plumbing elements will be inspected by Council staff as part of the regulatory approvals process
required under the Plumbing Act.
Previous Council Consideration
Ordinary Meeting Minutes, 15 August 2019, Item 8, Page 15
That Council note the report by the Project Officer to the General Committee Meeting dated 12
August 2019 regarding the proposed Hinterland Playground at Cooroy and:
A. Note the general project update; and
B. Note the specific updates to the capital and operating cost estimates.
C. Make the Cooroy Hinterland Playground Economic and Financial Analysis available to the
public on Council’s website.
Page 7 of 11
Section 8
SPECIAL MEETING AGENDA 4 FEBRUARY 2021
Ordinary Meeting Minutes, 15 August 2019, Item 9, Page 15
That Council note the report by the Project Officer to the General Committee Meeting dated 12
August 2019 and authorise staff to call for Expressions of Interest for the Design, Construction and
Maintenance of the Cooroy Hinterland Playground.
Special Meeting Minutes, 27 January 2021, Item 2, Page 2
That Council note the report by the Coordinator Planning to the Special Meeting dated 27 January
2021 regarding Application No. MCU20/0012 for a Development Permit for Material Change of Use
- Transport - Type 2 Car Park situated at 4-8 Lower Mill Road, Cooroy and MCU20/0013 for a
Development Permit for Material Change of Use – Open Space Type 1 Sport and Recreation
(Playground) at 1, 3 and 9 Maple Street, Cooroy and:
A. Approve Applications MCU20/0012 and MCU20/0013 in accordance with the conditions
contained in the Special Meeting Minutes dated 27 January 2021.
B. Note the report is provided in accordance with Section 63(5) of the Planning Act 2016.
Finance
A BR2 budget of $739,554.00 excluding GST has been allocated for the 2020/21 financial year,
with the balance of funds to be allocated in 2021/22 under the 10-year Capital Works Program.
Note that this does not include funding for delivering the Maple Street car-parking and pedestrian
street improvements – this is funded as a separate project in the current capital works program
(refer discussion below).
Item Cost ex GST Comments
Design + Construction $3,761,256.59 Based on outcomes from Early Contractor Involvement
Contract with Maintenance process
provisions
Contingency (10%) $ 376,126.00 This level of contingency is appropriate for the type of
construction and covers unforeseen issues onsite and
during the delivery of the contract
QLeave (0.575%) $ 29,900.00 Based on full project estimated cost for playground
($5.2M) – refer Council Report August 2019
TOTAL $4,167,282.59
The contingency noted above is for the construction contract only and does not cover the potential
additional costs discussed in Section 5 above or in ‘Risks and Opportunities’ below.
Total project costs have continued to be refined since the last Update Report issued to Council in
August 2019. The latest estimate is as follows:
ESTIMATE Cost ex GST Comments
DCM Contract $4,167,282.59 As above
Maple Street Carpark and Raised $ 517,647.00 Latest Estimate January 2021
Crossing costs
Costs to June 2020 $ 637,000.00 Costs related to Planning, Design,
Approvals and Procurement in years
2015-2020
Other identified remaining costs for $ 656,976.45 Refer discussion below
additional works
TOTAL PROJECT ESTIMATE $5,978,906.00
Revenue LGGSP Grant-funding $2,788,770.60 To be expended by December 2021
TOTAL COSTS COUNCIL $3,190,135.40
Page 8 of 11
Section 9
SPECIAL MEETING AGENDA 4 FEBRUARY 2021
The related project Cooroy Maple Street carpark and raised pedestrian crossing will be the subject
of a separate tender report to Council shortly. The current estimate for this project, inclusive of
services relocation and installation, and contingencies, is $517,647.00 excluding GST.
Identified remaining cost estimates for additional works and unforeseen items include the following:
• Purchase of Road Reserve land from State Government at playground site
• Additional requirements as a result of the DA approval conditions – mainly associated with
flood management and environmental improvements, along with some site-specific signage,
• Services relocations (water mains),
• Early tree and plants procurement,
• Allowance for temporary shade structures after research and feedback into recent
playground constructions in SE Qld (these are to remain in place until the tree canopy
matures), and
• Contaminated Land management.
Risks & Opportunities
Finance risks include:
• Cost of construction exceeding budget. The ECI process has alleviated the majority of
concerns that future construction costs may exceed the budget allocation. Nevertheless, this
will be carefully managed throughout the construction period by utilising the Project Control
Group and Budget approval processes. Opportunities for additional funding through other
upcoming grant-funding rounds are also being investigated by project staff and
representatives from Finance.
• Development Application (DA) approval conditions. The conditions included in the DA
approval will impose a number of additional costs to the project that were not originally
foreseen. Some anticipated items were allowed for in the most current scope of works but a
few remain to be determined. The budget will continue to be finalised in the coming weeks
as each condition is assessed and quantified.
• Client request for scope changes. This will be mitigated through Project Control Group
management and limitation of client requested scope variations.
• Latent conditions. Typically a geotechnical risk, extensive previous investigations have
mitigated much of this risk. There is some residual risk associated with unforeseen
conditions, given the industrial history of the site and potential hidden defects that will be
carefully monitored.
• Variation risks. This has been partly mitigated through the lump sum construction
procurement method with further mitigation through using an ECI process and post-tender
clarifications, tying Aspect Contractors firmly into the scope of works.
• Contingency amount being insufficient. This risk has to an extent been mitigated through the
ECI process, along with the risk profile adopted for this type of project informing an
appropriate allocation of contingency level.
Time risks include:
• Wet weather delays. Construction during the typically dry season aims to mitigate this. Some
wet-weather day allocations have been built into the programme, given the current La Nina
weather pattern.
• Delays in obtaining final approvals. These have been built into the pre-construction program.
• Delays from equipment suppliers. Some equipment is required to be sourced from interstate
and possibly overseas and may experience delays. The contractor has factored this into their
construction program.
Page 9 of 11
Section 10
SPECIAL MEETING AGENDA 4 FEBRUARY 2021
• Grant-funding mandated schedule. The current Local Government and Grants Subsidies
Program (LGGSP) requires construction completion by end-of-December 2021. Whilst this
has been factored into the current construction schedule, the programme will be monitored
to ensure compliance is maintained, with any potential requests for variation to the schedule
identified well in advance.
Safety Risks;
• Aspect Contractors will be appointed as the Principal Contractor and responsible for
Workplace Health and Safety of the construction site. Prior to construction commencing,
workplace health and safety and pedestrian and traffic management plans will be required
to be submitted to Council for approval. Council will undertake regular audits on contractor
compliance with these approved plans throughout construction.
Scope and Quality Risk;
• The risk of meeting project objectives will be managed through Council staff reviews
supported by specialist consultants who developed the performance specifications.
• Quality requirements. Given the high quality expectations for much of the finished play-
spaces and outdoor areas, a dedicated Council project officer will be assigned to monitor
and direct the contractor specifically on issues of quality and compliance.
• Public Art. The rationalisation of the delivery cost and scope of works that occurred during
the ECI process resulted in reducing or removing a number of non-essential design elements
that were included in the original scope of works. However, budget allocations for
incorporating art into the site was defunded, which may not suit the vision for the site given
the ‘iconic’ nature of the brief. Whilst the overall project design remains reasonably intact, it
is hoped an alternative source of funding may reinstate many of these elements prior to
construction completion, with artwork a priority if this occurs.
Resource Risk;
• Aspect Contractors have nominated a highly capable team for this project limiting the
resourcing risks to this project. The addition of external architectural and engineering
consultants, mitigates the resourcing risk from Council.
• Council are currently resourcing additional staff to the Infrastructure Planning, Design and
Delivery section which will help ensure sufficient project management time and attention is
given to the project in the 2020/21 and 2021/22 financial years.
Consultation
External Consultation - Community & Stakeholder
External Reference Group:
• Cooroy Futures Group
• Cooroy Area Resident’s Association
Internal Consultation
Chief Executive Officer, Community Services, Corporate Services, Environment & Sustainable
Development, and Infrastructure Services.
Page 10 of 11
Section 11
SPECIAL MEETING AGENDA 4 FEBRUARY 2021
Departments/Sections Consulted:
X Chief Executive Officer X Community Services X Corporate Services
Executive Officer Director X Director
Executive Support Community Development X Financial Services
Community Facilities ICT
Libraries & Galleries X Procurement & Fleet
Local Laws X Property
Waste & Environmental Health Revenue Services
Executive Services X Environment & Sustainable Development X Infrastructure Services
Director Director X Director
Community Engagement X Building & Plumbing Services Asset Management
Customer Service X Development Assessment X Buildings and Facilities
Governance Economic Development Civil Operations
People and Culture X Environmental Services Disaster Management
Strategic Land Use Planning X Infrastructure Planning,
Design and Delivery
Page 11 of 11