2014-01-13 Deamalgamation Report Attachment

2.4.3 De-amalgamation Cost Procedure

The Local Government (De-amalgamation Implementation) Regulation 2013 sets out the basis for
calculating the cost of De-amalgamation and is supported by the De-amalgamation Transfer
Methodology.

The de-amalgamation costs of a new local government are a debt payable by the new Noosa
Council; however in the period leading up to changeover day, the Sunshine Coast Council was
responsible for payment of all de-amalgamation costs on behalf of the new Noosa Council for
which they will be reimbursed. Sunshine Coast Council CEO must ensure detailed records are
kept in relation to all de-amalgamation costs paid.

De-amalgamation outgoings incurred by the new Noosa Council are primarily made up of
implementation and due diligence costs, community and staff engagement and information,
communication and technology expenses, and the cost to purchase any equipment and plant that
is required to maintain service deliver standards:

    the fees and allowances of the Transfer Manager.
    any civil liability that attaches to the State under section 17(2) of the LDIR.
    the remuneration and other costs associated with the employees made available by the
     continuing local government to the Transfer Manager for the new local government.
    the cost identified in the Transfer Methodology.
    any costs decided by the Transfer Committee and/or the Minister.

A working capital facility was established with the approval of the Department of Local
Government, Community Recovery & Resilience to enable the new Noosa Council to repay the
cost of de-amalgamation to the continuing Sunshine Coast Council. This facility became available
at 1 January 2014 and must be discharge by 31 December 2014.

De-amalgamation Cost Procedures were developed to manage the identification and approval of
de-amalgamation costs. These procedures identified two key principles that would be applied to
decision making:

    not a dollar more, not a dollar less and the
    but for test

All work/projects were scoped and approved by the Transfer Committee. Sunshine Coast Council
Chief Executive Officer determined the nature and level of resources to be allocated to each body
of work – for example staff time, consultants, contractors, service providers, equipment; and these
cost would be put to the transfer committee for approval. Staff time was recorded on a dedicated
time sheet and where possible linked to items in the Transfer Action Plan.

Regular meetings of the De-amalgamation Project Team are held to review all de-amalgamation
costs claimed and identify allowable costs for approval and disputed costs for consideration and
clarification - by the Transfer Committee at its monthly meeting.      A de-amalgamation cost
statement is prepared monthly for sign off by the Sunshine Coast Chief Executive Officer and the
Transfer Manager and provided to the Director General, Department of Local Government,
Community Recovery and Resilience.




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