2014-01-13 Deamalgamation Report Attachment

Page 31 of 95

at       sg) |     Ph es   4                                      ie       ri     =     i       =
Sunshine Coast                            De-amalgamation Cost Procedure
 a)         =
Council

           Tire OCS nrvat ipctude details of al approved De-amalganation costs parc, The OOS must
           be certified by both the CCEO and Transfer Manager and provided fo the Director-General
           no later than seven days after ihe end of each calendar month,”

Our Principles
In the Sunshine Coast Regional Council De-amalgamation process, we will apply two principles in
relation io De-amalgamation costs.
Principle 1 - "Nota Dollar More, Not a Dollar Less”
This principle recognises that:-
    *  the ratepayers of the remaining Sunshine Coast Regional Council should not be required to
       subsidise the establishment of the néw Noosa Shire Council. In other words, all costs incurred
       by the Sunshine Coast Regional Council directly related to the De-amalgamatian within the
       regulations and transfer methodology, should be recovered as De-amalgamation costs, and
    *  (the ratepayers of ihe new Noosa Shire Council should not have to pay unreasonable costs
       associated with the De-amalgamation process. in other words, every effort should be made to
       keep De-amalgamation costs as low as possible during the Be-amalgamation implementation
       process.

As such, the De-amalgamation costs process will be focused on ensuring thal the correct costs of De-
amalgamation are recorded and processed.
Principle 2 -— The “But For" Test
This principlé will ba used by the Transfer Committee to determing if a cost incurred is in fact a De-
amalgamation cost. The fast to be used by the Transfer Committee is as follows:-
“Would [hig activity have been required and therefore the cosf incurred but for the De-amal/gamatan
process?”
Applying this principle, costs associated with any activity that has been undertaken by the Sunshine
Coast Regional Council which would mot otherwise have been required but for the De-amalgamation
process, will be considered as a De-amalgamation cost.     To support this principle, a number of
examples are provided:-
Example 1-a Council manager allends a regular management meeting held on a weekly basis. As the
De-amaljamation is 4 major issue, this matter is discussed at that regular weekly meeting. This would
not be a De-amalgamation cost because that management meeting would have been held regardless
of whether or not the amalgamation was occurring. Management time in attending thal meeting is neta
De-amalgamation cost
Example 2 - 4 staff member is requested to review a list of Council plant and equipment in order to
identify which plant and equipment should be allocated to each of the two Councils based on the
transfer methodology. The time of that staff member to underdake thet task woukd be a De-
amalgamation cos! because thal aclivily would nol have been underlaken bul for the De-amalgamation
process, The same result would apply if that staff member was required to work overtime to complete
this additional task.

Example 3 — a staff member of SCRC is seconded to work for the Transfer Manager to assist with the
implementation of the de-amalgamation. All of tha costs of that staff member will ba De-amalgamation
costs while working for ihe Transfer Manager on the de-amalgamation.

                                                                                    PUuYye ol VI 7JV