2018-01-15 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                15 JANUARY 2018


Finance
Council has allocated a total of $265,652 in the 2017/18 Capital Works budget for the Carbon
Reduction Plan (Building & Facilities).

This budget is sufficient for the design, installation and project management of the four solar
systems as outlined below:

Item                          Size of system    Cost (excl. GST)
                                        (KW)

Noosa Aquatic Centre                     99.6            $93,891.05
Noosaville Depot                         48.5            $51,981.29   Solar supply and installation,
                                                                      net of Small Technology
The J                                    49.8            $51,981.29   Certificate rebates
The Leisure Centre                       21.6            $22,262.62
ERM Power Management                                     $33,017.45
Fee (15% of contracted                                                Project management fee
solar price)
Total                                                   $253,133.70


Risks & Opportunities
Financial risks
 The price of the Small Technology Certificates (STCs) reduces over the schedule of the
    project. This is mitigated as the supplier has provided fixed lump sum pricing for the contract
    which negates any impact of changes in pricing to the STCs.
 Costs related to the network conditions with Energex. All costs associated with ensuring
    zero export and grid connection costs with Energex have been included in the delivered cost.
 Variation risks. The suppliers visited all sites, and recommended appropriately sized solar
    systems for each site. This has been included in the lump sum price.
 The performance of the solar systems is sub-optimal exposing the Council to on-going
    electricity costs from the consumption of grid supplies electricity. This risk has been
    mitigated as the supplier has offered a performance guarantee on output of 90% for 3 years.
 The stated warranties for the equipment and installation are not supported. This risk is
    minimal as ERM is responsible for all warranties under the contract.

Time risks
 This project is not time critical, however significant delays will maintain the Council’s reliance
   for the supply of 100% of its electricity from the grid, thereby delaying the expected savings
   from generating its renewable energy.
 Wet weather delays. The installation program has been developed based on the previous
   experience of the supplier and has included contingency for weather.
 Delays from unexpected site conditions such as roof or electrical deficiencies. This risk has
   been minimised by suppliers visiting and inspecting each of the sites. A full structural
   assessment will be undertaken on award of the contract.




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