2017-03-07 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                   7 MARCH 2017


smaller business activity when implementing the Competitive Code of Conduct. The announced
expenditure thresholds applicable for the 2017/18 financial year are as follows:

•       $9.35 million for significant business activities; and
•        $328,000 for Code of Competitive Conduct business activities.

2. Application to Identified Business Activities for 2017/18

Two of Council’s activities have been identified as competitive in nature that meet the criteria and
relevant threshold levels for identification as business activities. The activities that have been
identified and reform levels to apply (based on the estimated annualised budgeted expenditure)
are:

    Business Activity            Expenditure                 Reform Level
    Waste Management             $10.5 million               Significant
    Holiday Parks                $1.6 million                Code of Competitive Conduct
Note: annualised expenditure for significant activities includes total operating expenses less depreciation less
competitive neutrality costs plus interest and loan redemption. Expenditure for code of competitive conduct activities
includes total operating expenses plus interest.

Previous Council Consideration

Council has adopted NCP reforms to the Waste Management and Holiday Parks business
activities since de-amalgamation in 2014.

Finance & Risk

Finance - Financing implications primarily revolve around the administrative effort in ensuring
ongoing competitive neutrality compliance (i.e. budget preparation, reporting, full cost pricing
modelling).

Risk - Failure to appropriately review and apply competition reforms annually is a breach of the
Local Government Act 2009, and could also potentially result in competitive neutrality complaints
should appropriate adjustments not be incorporated into business activity pricing decisions.

Consultation
External Consultation - Community & Stakeholder
Nil
Internal Consultation
Nil
Departments/Sections Consulted:

      Chief Executive Officer                    Community Services                      Corporate Services
      Executive Officer to the Mayor & CEO       Community Facilities                    Financial Services
      Executive Support                          Community Development                   ICT
                                                 Libraries & Galleries                   Procurement & Fleet
                                                 Local Laws                              Property & Facilities
                                                 Waste & Environmental Health            Revenue Services

      Executive Office                           Planning & Infrastructure
      Community Engagement                       Building & Plumbing Services
      Customer Service                           Civil Operations
      Economic Development                       Infrastructure Planning & Design
      Governance                                 Planning & Environment
      Human Resources                            Strategic Land Use Planning
      Sustainability


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