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2021-07-12 General Committee Meeting Agenda
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AGENDA
General
Committee Meeting
Monday, 12 July 2021
commencing at 10am
Council Chambers, 9 Pelican Street, Tewantin
Committee: Crs Frank Wilkie (Chair), Karen Finzel, Joe Jurisevic, Amelia
Lorentson, Clare Stewart, Brian Stockwell, Tom Wegener
“Noosa Shire – different by nature”
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Section 2
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
TABLE OF CONTENTS
ITEM PAGE
1 ATTENDANCE & APOLOGIES 3
2 CONFIRMATION OF MINUTES 3
3 PRESENTATIONS 3
4 DEPUTATIONS 3
5 ITEMS REFERRED FROM COMMITTEES 3
1 MCU19/0119.02 OTHER CHANGE TO A DEVELOPMENT APPROVAL FOR A
MATERIAL CHANGE OF USE FOR MULTIPLE HOUSING - TYPE 2 DUPLEX
AND SHORT-TERM ACCOMMODATION AND OPERATIONAL WORKS
(DRAINAGE WORK, STORMWATER, EARTHWORKS, LANDSCAPING,
CARPARKING & ACCESS) 2 NOLA STREET, NOOSAVILLE 3
2 RAP21/0016 APPLICATION FOR A REFERRAL AGENCY RESPONSE FOR A
DWELLING HOUSE (FILLING BEYOND 3M OF THE FOOTPRINT OF
BUILDING) AT 11 CHURCH ST, POMONA 3
3 MCU20/0149 APPLICATION FOR MATERIAL CHANGE OF USE FOR SHORT-
TERM ACCOMMODATION AT 29 FERGUSON ST, SUNSHINE BEACH 3
4 MCU15/0069.01 OTHER CHANGE TO A DEVELOPMENT APPROVAL FOR A
MATERIAL CHANGE OF USE FOR MULTIPLE HOUSING - TYPE 2 DUPLEX
AND SHORT-TERM ACCOMMODATION AT 1/39 DUKE STREET, SUNSHINE
BEACH 3
5 NOOSA CYCLING AND WALKING STRATEGY AND IMPLEMENTATION PLAN
ENDORSEMENT 3
6 REPORTS DIRECT TO GENERAL COMMITTEE 4
6 MCU21/0046 – APPLICATION FOR A MATERIAL CHANGE OF USE – SHORT-
TERM ACCOMMODATION AT 2 LOWRY ST, PEREGIAN BEACH 4
7 T000042 – TEWANTIN BYPASS STAGE 1 – WATERMAIN RELOCATION 17
8 TOURISM FUNDING AGREEMENT REVIEW PROCESS 24
7 CLOSED SESSION 28
Page 2 of 28
Section 3
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
1 ATTENDANCE & APOLOGIES
2 CONFIRMATION OF MINUTES
The Minutes of the General Committee Meeting held on 14 June 2021 be received and
confirmed.
3 PRESENTATIONS
Nil.
4 DEPUTATIONS
Nil.
5 ITEMS REFERRED FROM COMMITTEES
PLANNING & ENVIRONMENT COMMITTEE
1 MCU19/0119.02 OTHER CHANGE TO A DEVELOPMENT APPROVAL FOR A
MATERIAL CHANGE OF USE FOR MULTIPLE HOUSING - TYPE 2 DUPLEX AND
SHORT-TERM ACCOMMODATION AND OPERATIONAL WORKS (DRAINAGE
WORK, STORMWATER, EARTHWORKS, LANDSCAPING, CARPARKING &
ACCESS) 2 NOLA STREET, NOOSAVILLE
(Planning & Environment Committee Agenda, 6 July 2021, Item 1, Page 4)
Reason for referral – significance of the issue.
2 RAP21/0016 APPLICATION FOR A REFERRAL AGENCY RESPONSE FOR A
DWELLING HOUSE (FILLING BEYOND 3M OF THE FOOTPRINT OF BUILDING) AT
11 CHURCH ST, POMONA
(Planning & Environment Committee Agenda, 6 July 2021, Item 2, Page 22)
Reason for referral – for further consideration.
3 MCU20/0149 APPLICATION FOR MATERIAL CHANGE OF USE FOR SHORT-TERM
ACCOMMODATION AT 29 FERGUSON ST, SUNSHINE BEACH
((Planning & Environment Committee Agenda, 6 July 2021, Item 3, Page 35)
Reason for referral – significance of the issue.
4 MCU15/0069.01 OTHER CHANGE TO A DEVELOPMENT APPROVAL FOR A
MATERIAL CHANGE OF USE FOR MULTIPLE HOUSING - TYPE 2 DUPLEX AND
SHORT-TERM ACCOMMODATION AT 1/39 DUKE STREET, SUNSHINE BEACH
(Planning & Environment Committee Agenda, 6 July 2021, Item 3, Page 60)
Reason for referral – significance of the issue.
SERVICES & ORGANISATION COMMITTEE
5 NOOSA CYCLING AND WALKING STRATEGY AND IMPLEMENTATION PLAN
ENDORSEMENT
(Services & Organisation Committee Agenda, 6 July 2021, Item 11, Page 28)
Reason for referral – significance of the issue.
Page 3 of 28
Section 4
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
6 REPORTS DIRECT TO GENERAL COMMITTEE
6 MCU21/0046 – APPLICATION FOR A MATERIAL CHANGE OF USE – SHORT-TERM
ACCOMMODATION AT 2 LOWRY ST, PEREGIAN BEACH
Author Development Planner, Blake Coulston
Environment and Sustainable Development Department
Index ECM / Application / MCU21/0046
Attachments 1. Floor Plans
APPLICATION DETAILS
Applicant Kathryn Elisabeth Payne TTE
Simon Alan Payne TTE
Proposal Material Change of Use - Short-term accommodation
Properly Made Date 18 March 2021
Information Request Date Not applicable
Information Response Date Not applicable
Decision Due Date 9 July 2021
Number of Submissions Eighty-six (86)
PROPERTY DETAILS
Property Address 2 Lowry St Peregian Beach Qld 4573
RP Description Lot 15 P 93124
Land Area 607.0000 m²
Existing Use of Land Dwelling House
STATUTORY DETAILS
SEQRP Designation Urban Footprint
Zone Medium Density Residential Zone
Precinct Not applicable
Local Plan Area Coastal Communities
Overlays Acid Sulfate Soils (Above 5 metres AHD to 20 metres AHD); and
Bushfire Hazard (Potential Impact Buffer).
(Not Applicable)
Assessment Type Impact
RECOMMENDATION
That Council note the report by the Development Planner to the General Committee Meeting
dated 12 July 2021 regarding Application No. MCU21/0046 for a Development Permit for
Material Change of Use - Short-term Accommodation situated at 2 Lowry St Peregian Beach
and:
Page 4 of 28
Section 5
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
A. Refuse the application in accordance with the following conditions:
1. The proposal is not consistent with 3.2.4 Housing to meet diverse needs of the
community and 3.3.3 Housing Choice (n) of the Strategic Framework, as increased
visitor accommodation is not sought or needed for the area and visitor
accommodation will further erode the permanent housing in the area, impacting
permanent resident amenity.
2. The proposal is not consistent with 7.2.6.2 Purpose and Overall Outcome (2)(o)
and Performance Outcome PO1, PO2 & PO15 of the Coastal Communities Local
Plan Code as:
i. The extent of visitor accommodation has started to erode the available
supply of permanent housing in the local plan area.
ii. The proposal seeks to establish a short-term accommodation in an area
which is predominantly permanent residential dwellings; and
iii. Additional visitor accommodation in the area is likely to result in detrimental
impacts on the residential neighbourhood and amenity of permanent
residents.
3. The proposal is not consistent with 9.3.5.2 Purpose and Overall Outcomes (1) and
(2)(f) of the Visitor Accommodation Code as:
i. The proposed visitor accommodation is not appropriately located in Peregian
Beach being in an area that is predominantly home to permanent residents
and consequently does not integrate well into the area.
ii. The proposed visitor accommodation is likely to detract from the amenity
enjoyed by residents given resident’s reasonable expectations for the area.
4. The proposal is not consistent with 6.3.2.2 Purpose and Overall Outcomes (2)(a)
and (h) of the Medium Density Residential Zone Code as:
i. The proposal seeks to establish a new short-term visitor accommodation
facility within a dwelling and is not located within a well-established resort or
holiday units.
ii. There are a number of sites advertised as being available for visitor
accommodation in the immediate neighbourhood and zoned medium density
residential.
5. There is no need for additional short term accommodation in the area.
B. Note the report is provided in accordance with Section 63(5) of the Planning Act 2016.
REPORT
1. PROPOSAL
The application is seeking to obtain a Development Permit for Material Change of Use – Short-
term Accommodation for 2 Lowry Street, Peregian Beach formally known as Lot 15 of P93124.
The development consists of repurposing the existing two storey dwelling house for Short-term
Accommodation, with no additions or alterations to the building itself. The key components of
the use are:
The Short-term Accommodation use will utilise 4 bedrooms;
Two (2) persons per bedroom, and eight (8) in total;
A local property manager will oversee the letting, management and maintenance of the
premises;
Page 5 of 28
Section 6
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
Management of the property will be in line with Noosa Council Local Laws regulations
for short-term rental properties;
A Code of Conduct and Management Agreement will be provided to all guests;
All guests must agree to the rules of the property at the time of booking;
The 2 bay garage and associated driveway is provided to guests for parking;
No events, weddings, parties, or the like are to occur on the premises;
The alfresco and pool are located at the rear of the property and screened from view by
existing landscaping and fencing;
The property is fully fenced and landscaped.
Figure 1 – Locality
Page 6 of 28
Section 7
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
Figure 2 – Floor Plan
2. SITE DETAILS
2.1. Background
A Private Building Certifier has approved the dwelling house on the 9 June 2006. The dwelling
house contains: 4 bedrooms, 2 bay garage, study room, dining room, living room, home
theatre, kitchen, and an alfresco area.
A copy of the approved site plan is detailed below:
Page 7 of 28
Section 8
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
Figure 3 – Site Plan
2.2. Site Description
The subject site is located on the corner of Lowry St and David Low Way, gaining vehicle
access from Lowry Street.
The four bedrooms are located on the top floor whilst the garage, living and dining areas are
located on the ground floor of the premises.
Private open spaces associated with the dwelling house are located at the rear of the property
(opposite to the Lowry Street frontage).
2.3. Surrounding Land Uses
The subject site has two adjoining neighbours: 4 Lowry Street & 53 Kestrel Crescent, both of
which are used as Dwelling Houses. The site is also in proximity to the following holiday
accommodation (located on the other side of David Low Way): Peregian Court, Beachcomber
Peregian Beach, Hideaway Noosa Men’s Only Beach resort, Glen Eden Beach Resort, and
The Retreat Beach Houses.
Page 8 of 28
Section 9
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
Figure 8 - Zone Map, with the area zoned Medium Density Residential shown in darker pink
3. ASSESSMENT
3.1. Instruments for Statutory Assessment
Under the Planning Act 2016 the application must be assessed against each of the following
statutory planning instruments to the extent they are relevant to the development:
State Planning Policy;
South East Queensland Regional Plan;
Planning Regulation 2017;
Noosa Plan 2020.
Page 9 of 28
Section 10
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
3.2. State and Other Statutory Instruments
State Planning Policy
Noosa Plan 2020 is generally consistent with the State Planning Policy July 2017 (SPP) and
the SPP raises no further issues relevant to the proposed development.
South East Queensland (SEQ) Regional Plan
The site is located within the Urban Footprint of the SEQ Regional Plan. The proposal is
consistent with the regional policies of the SEQ Regional Plan.
Planning Regulation 2017
The proposal is for an urban activity within the Urban Footprint and is consistent with the
assessment benchmarks contained in the Planning Regulation 2017 for the SEQ Region.
3.3. Statutory Instruments – Planning Scheme
The application must be assessed against the entire Noosa Plan 2020 to the extent the
provisions are relevant to the development.
Strategic Framework
The Noosa Plan 2020 includes Strategic Outcomes which seek that neighbourhoods of
permanent housing are protected from short term visitor accommodation that would impact on
the amenity enjoyed by residents. The planning scheme also seeks to protect areas for visitor
accommodation with a range of accommodation styles envisaged to support the local tourism
industry.
The strategic intent outlines that tourism is a key sector of the Noosa economy and will
continue to be so into the future. Key visitor areas includes: Hastings Street, Gympie Terrace,
Noosa River, Tewantin Marina, Noosa National Park, Sunshine Beach, Peregian Beach,
Noosa North Shore and the Hinterland. While sustainable tourism is supported as an ongoing
economic driver, the planning scheme identifies that encouraging and developing new priority
sectors is required to develop an economy less reliant on tourism and population driven
industries.
Growing of the economy is not a ‘development at all cost’ scenario but rather a dedicated plan
to grow the value of priority industry sectors, support the social and environmental values of
the community, and enhance quality of life.
The proposed short term accommodation supports the strategic intent of Noosa’s tourism by
providing an alternative form of visitor accommodation to resort, motel development etc.
However, the characteristic of the surrounding area is predominately residential with a sense
of community. The short-term accommodation cannot be located in such a neighbourhood
without degrading the amenity enjoyed by residents, as the characteristic of the neighbourhood
contributes to the amenity.
Locality Provisions
The subject site is located in the Coastal Communities Local Plan Area and is zoned Medium
Density Residential. The proposed use is identified as a consistent use with the zone and is
required to follow an impact assessable application process.
The Medium Density Residential Zone Code, the Coastal Communities Local Plan Code and
Visitor Accommodation Code include provisions which address the potential impacts of short
term accommodation. The relevant provision are:
Coastal Communities Local Plan Code
7.2.6.2 Purpose and Overall Outcomes
(m) Sites identified for tourist accommodation are retained and developed for that
use to maintain a diversity and choice of visitor accommodation and affordability
in the local plan area.
Page 10 of 28
Section 11
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
(o) Development in the Medium Density Housing zones accommodates a greater
diversity in housing types including dual occupancies, multiple dwellings,
retirement facilities and residential care facilities.
PO1
Development enhances the role of the coastal communities as a beachside residential area
which also include a considerable amount of visitor accommodation.
PO2
Development contributes to the lifestyle and amenity of residents and visitors in the coastal
communities.
PO14
Development provides a diversity of types and styles of visitor accommodation to cater for a
range of visitor experiences in close proximity to key tourist areas.
PO15
Visitor accommodation is not be located in areas which are predominantly permanent
residential dwellings
Medium Density Residential Zone code
6.3.2.2 Purpose and Overall Outcomes
(a) Medium density residential neighbourhoods are predominantly home to
permanent residents.
(h) Short-term visitor accommodation is predominately provided through well-
established resorts and holiday units.
6.3.2.3 Assessment Criteria
AO6.2
Short-term accommodation does not:
a. constitute a party house;
b. create noise that would unreasonably impact on the residential amenity enjoyed by the
adjoining or surrounding properties.
PO6
Visitor accommodation is limited to formats compatible with the character and use of the area
so as not to cause unreasonable loss of residential amenity, having regard to:
a. the privacy of residents on the subject property or adjoining properties;
b. any likely increase in noise to adjoining properties;
c. the scale of the use and its compatibility with the character and uses within the property
or surrounding area;
d. retention of the primary residential function of an area;
e. the residential function and arrangement of common property;
f. the impact on the safety and efficiency of the local road network;
g. the impact of waste storage areas on the visual amenity of the area;
h. the location of waste storage areas in relation to sensitive land uses; and
i. any impact on shared vehicular access or parking.
Visitor Accommodation Code
9.3.5.2 Purpose and Overall Outcomes
(b) Visitor accommodation offers a wide range of experiences for guests both in coastal
areas and in the hinterland;
Page 11 of 28
Section 12
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
(f) Visitor accommodation located near permanent residents does not detract from the
amenity enjoyed by residents;
(j) Visitor accommodation provides for a wide range of visitors.
PO3
Development has a scale and density that is compatible with the intent of the zone and the
preferred character for the local area in which it is located.
PO4
Visitor accommodation is located such that it preserves the safety of guests and does not
impact on the function of infrastructure including:
(a) the major road network;
(b) the North Coast railway line;
(c) existing and future electricity supply infrastructure; and
(d) water supply and waste water treatment.
PO12
Sufficient on-site car parking is provided to accommodate the number and type of vehicles
likely to be generated by the visitor accommodation having regard to the number of guests,
staff or visitors.
PO25
Short-term accommodation in a single dwelling is limited to formats compatible with the
character and use of the area so as not to cause unreasonable loss of residential amenity,
having regard to:
(a) the privacy of residents on the subject property or adjoining properties;
(b) any likely increase in noise to adjoining properties;
(c) the scale of the use and its compatibility with the character and uses within the property
or surrounding area;
(d) retention of the primary residential function of an area;
(e) the impact on the safety and efficiency of the local road network;
(f) the impact of waste storage areas on the visual amenity of the area or sensitive land
uses; and
(g) any impact on shared vehicular access or parking.
Officer Assessment:
The planning scheme priorities the preservation of areas which are predominantly permanent
residential dwellings and seeks to protect the amenity of surrounding residential areas from
the impacts of short-term accommodation.
The following image details the location of holiday letting facilities in the medium density
residential zone.
Page 12 of 28
Section 13
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
Figure 9 Location of holiday accommodation properties within Medium Density Residential
Whilst acknowledging that there are a quite a number of holiday letting premises in the
surrounding neighbourhood of medium density residential zone, there are slightly more
permanent residential dwellings. Within the surrounding area it is also noted that a number of
visitor accommodation facilities are located within Peregian Beach locale but located opposite
the site in David Low Way.
It is acknowledged that the use of the premises for short term accommodation has the potential
to have a significant impact on the amenity of the surrounding residential area. These impacts
are often attributed to noise, car parking and waste disposal. The requirement for a
development application for short term accommodation provides the opportunity to regulate
the use of the site so as to mitigate these potential impacts.
The proposed subject site is situated away from the bulk of the holiday letting premises within
the medium density residential zone and across David Low Way from the resorts, and the
location of the subject site is adjacent and leads into areas of low density residential which are
used predominately for permanent residential dwellings. PO15 of the Coastal Communities
Local Plan Code, requires that visitor accommodation is not located in areas which are
predominantly permanent residential dwellings.
Page 13 of 28
Section 14
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
Overall Outcome (2)(o) of the Coastal Communities Local Plan Code states: Development in
the Medium Density Housing zones accommodates a greater diversity in housing types
including dual occupancies, multiple dwellings, retirement facilities and residential care
facilities. The code does not envisage the extent of visitor accommodation in the medium
density residential zone, as currently exists and there is no demonstrated need for additional
short term accommodation in the area.
4. CONSULTATION
4.1. Referral Agencies
Not applicable
4.2. Internal Council Referrals
Not applicable
4.3. Public Notification
The application was publicly notified for fifteen (15) business days in accordance with the
Planning Act 2016. 86 properly made submissions were received, all raising objection to the
proposal. The following table provides a summary and assessment of the issues raised by
submitters.
Matters Raised Comments
Concerns for vehicle safety at The proposed use has a limit to the amount of
intersection of David Low Way and persons staying on site (2 persons per bedroom, 8 in
Lowry Street total) and will not have any significant impacts on the
intersection.
Car parking congestion in Lowry Street The proposed development can provide for 2 covered
and Kestrel Crescent car parking spaces and 2 uncovered in the driveway.
As the proposed use is only 4 bedrooms, the provided
on-site car parking is likely sufficient and meets the
scheme’s requirements for car parking.
Short-term Accommodation increases Agreed, it is likely that at times there will be more cars
the amount of vehicles entering and coming and going from the property then if used as a
exiting of the property dwelling house.
Noise The noise could be regulated with the code of conduct
and property management conditions. Outdoor
entertainment areas could be restricted to minimise
noise at night.
Subject site is in close proximity to a This is not a valid development assessment issue as it
school bus route. (Concern for safety of relies on the hypothetical scenario of guests
children from strangers) committing criminal actions.
Break down of the sense of community / This concern is raised through the assessment of
Ruining the village environment PO15 of the Coastal Communities Local Plan Code:
Visitor Accommodation is not be located in areas
which are predominantly permanent residential
dwellings.
Parties Were the application to be approved, the property
would not be permitted to be used regularly for parties
as this is a separately defined use.
Reducing values of residential properties Monetary concerns are not a Planning matter.
Current lack of long term rental It is acknowledged short term accommodation utilises
properties housing supply which could be used for other
purposes and has the potential to impact on rent
prices of the remaining housing stock.
Page 14 of 28
Section 15
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
Figure 10 – Submission Locations
5. CONCLUSION & REASONS FOR DECISION
The application seeks to use a dwelling house for short-term accommodation purpose. The
dwelling house is located on the corner of David Low Way and Lowry Street. The planning
scheme seeks to prioritise the preservation of medium density residential neighbourhoods for
predominantly permanent residential dwellings and seeks to protect the amenity of surrounding
residential areas from the impacts of short-term accommodation. Whilst acknowledging that
short-term accommodation has been identified as a consistent use within the applicable zone,
the subject site is located within the Coastal Communities area, under which the Noosa Plan
provisions require that visitor accommodation is not located in areas which are predominantly
permanent residential dwellings. As such, the proposal does not comply with a number of
provisions of the Noosa Plan 2020. Additional visitor accommodation is not needed in the area
and is likely to further erode the residential amenity for permanent residents in the area.
Accordingly, the application is recommended for refusal.
Departments/Sections Consulted:
Chief Executive Officer Community Services Corporate Services
Executive Officer Community Development Financial Services
Executive Support Community Facilities ICT
Libraries & Galleries Procurement & Fleet
Local Laws Property
Waste & Environmental Health Revenue Services
Executive Services x Environment & Sustainable Development Infrastructure Services
Community Engagement Building & Plumbing Services Asset Management
Customer Service x 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 15 of 28
Section 16
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
Page 16 of 28
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
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Page 16 of 28Section 17
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
7 T000042 – TEWANTIN BYPASS STAGE 1 – WATERMAIN RELOCATION
Author Designer Capital Works, Aiden Flannery
Infrastructure Services Department
Index ECM/ Project and Contract/ T000042 Tewantin Bypass Stage 1 –
Watermain Relocation
ECM/ Projects (T1) / Tewantin Bypass – Beckmans Rd – CAP.WORK –
100970
ECM/ Subject/Contract/Road Construction
Attachments 1. Evaluation Spreadsheet
EXECUTIVE SUMMARY
This report provides a tender evaluation summary and recommendation for the tender award
in favour of the preferred contractor M&K Pipelines (QLD) Pty Ltd to carry out the Tewantin
Bypass Stage 1 Watermain Relocation. This follows a public tender with seven respondents
providing compliant submissions for Council to assess.
The tender price is under budget with the cost for the watermain relocation fully funded by the
Department of Transport and Main Roads under a Funding Agreement, with no funding
required by Council.
RECOMMENDATION
That Council note the report by the Designer Capital Works to the General Committee Meeting
dated 12 July 2021 and
A. Award Contract T000042 for the construction of the Tewantin Bypass Stage 1 –
Watermain Relocation works to M&K Pipelines Pty Ltd for the lump sum price of
$554,795 excluding GST;
B. Approve expenditure under this Contract up to $767,480 excluding GST, including
contingency spend.
REPORT
1. Project Background
The delivery of the Tewantin Bypass Stage 1 – Beckmans Road and Cooroy-Noosa Road
Intersection Upgrade (upgrade) is funded by Transport and Main Roads (TMR) under
Funding Agreements for the design phase and for construction executed by TMR and
Council.
Through the Funding Agreement it was agreed for Council to undertake the delivery including
the design development.
In general, the scope of the upgrade includes:
Project Management of the design, early works and construction phases.
Design development including all necessary approvals.
Design, coordination, liaison with relevant Authorities and the delivery of early works
packages including the watermain relocation.
The upgrade of the existing T-intersection to a dual-lane roundabout with the ability to
tie-in with future staging including the proposed Beckmans Road Duplication.
All required works including but not limited to earthworks, drainage, pavements, UP
relocations, electrical and landscaping.
Page 17 of 28
Section 18
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
Early works requirements have been introduced to the delivery methodology to compress the
overall delivery program by enabling relocations to occur concurrently with the design
development. Other benefits include reducing the risk of authority interfacing with the main
contractor (such as Energex and UnityWater) and having the ability to deliver authority
relocation using specialist contractor’s, reducing risk of program and cost.
The project consists of the following stages with the current status noted:
Cost
Stage Description Timing Status (%)
to Date
Planning & detailed design Mar 2020 –
Planning & Design 90% $410,000
including approvals Jul 2021
Implementation Internal costs including Mar 2020 –
10% $50,000
Costs consultants Jun 2022
Clearing Works May 2021 100% $70,000
Energex relocation June 2021 100% $120,000
Early Works
Jul 2021 – This For
Trunk Watermain
Sep 2021 contract approval
Construction –
All remaining works to Oct 2021 – To be
Main Civil Contract Design
complete the upgrade Jun 2022 tendered
(Future Works)
Total to date $650,000
2. Budget
The overall budget for this project, under TMR’s Funding Agreement, is as follows:
Amount (Excl.
Summary Financial Details
GST)
Funding Agreement – Detailed Design Stage $600,000
Funding Agreement – Construction Stage (Council’s Implementation
$485,000
Costs)
Funding Agreement – Construction Stage
$6,980,000
(see breakdown below)
Clearing $80,000
Energex relocation $313,500
Trunk Watermain (This Contract) $767,480
Main civil works $5,334,020
Funding Agreement – TMR Costs $100,000
Approved Variations $0
Contingency $1,645,000
TOTAL $9,810,000
Page 18 of 28
Section 19
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
Under the terms of the Funding Agreement, amounts exceeding the budget items requires
TMR approval to use the contingency. Under this Contract, any amount exceeding $767,480
requires TMR approval to access additional funds within the Contingency amount of
$1,645,000.
3. Tender Process
Due to the budget for the watermain relocation works being greater than $200,000, staff
prepared and called for public tenders in accordance with the Local Government Act 2009.
Tender T000042 was released via VendorPanel on 17 May 2021, and advertised in Noosa
Today on 21 May 2021. The tender closed on 15 June 2021 with seven (7) conforming
submissions received.
4. Tender Assessment
The tender evaluation panel undertook an assessment of the following conforming tender
submissions, listed in alphabetical order:
Diona Pty Ltd
Dormway Pty Ltd
GCE Contractors Pty Ltd
M&K Pipelines (QLD) Pty Ltd
Offaly Civil Pty Ltd
SGQ Pty Ltd
Silverstrand Development Pty Ltd
One additional submission was received and assessed as non-conforming and was not
considered.
The conforming tenderers were evaluated using the following evaluation criteria and
weightings:
Evaluation Criteria Weightings
Price 30%
Capability & Resourcing 15%
Contract Experience & Capacity 15%
Methodology 20%
Quality 10%
Health & Safety 5%
Contribution to Local Economy 5%
Note: Attachment 1 presents the evaluation outcome of the conforming submissions against
the above criteria.
The tender evaluation panel completed the evaluation process and considered M&K Pipelines
(QLD) Pty Ltd to be the most advantageous to Council, presenting the best value for money.
M&K Pipelines (QLD) Pty Ltd tender submission is most favourable based on their tender
demonstrating the following:
High level of experience and capability to construct trunk watermains for water
authorities, such as UnityWater.
A detailed methodology demonstrating their understanding of the scope.
Resourcing to commence as soon as awarded.
An advantageous program to complete work in a timely manner to enable the main civil
contract to commence as planned.
Certified Quality System.
Page 19 of 28
Section 20
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
Certified Workplace Health and Safety systems.
Overall best value for money benefit for Council.
5. Program & Next Steps
M&K Pipelines (QLD) Pty Ltd propose to commence procurement immediately in July with
Practical Completion towards the end of September 2021 inclusive of a wet weather allowance.
M&K Pipelines (QLD) Pty Ltd program duration is 10 weeks.
6. Construction Management & Inspections
The current delivery model has Council in the project management and Superintendent roles.
Council resourcing to support the project are in place with specialist consultants available to
provide technical advice and inspections if necessary.
Previous Council Consideration
Nil.
Finance
The estimated construction cost is fully funded by TMR under the Funding Agreement and
there will be no requirement to cashflow the costs.
As per the milestone payments nominated in the Funding Agreement, the first milestone
payment of $1.493M (ex GST) has been invoiced and will be paid to Council prior to the first
payment claim by the proposed contractor.
The total construction cost estimate is as follows:
Item Budget (Excl. GST)
M&K Pipelines (QLD) Pty Ltd (This contract) $554,795
Engineering consultants (if required, refer below)
Callaghan & Toth (engineering / designer) $5,000
Native Foresters (Fauna) $5,000
Archeo (Cultural Heritage) $10,000
Plant, equipment & labour (significant tree retention) $5,000
SUB-TOTAL $579,795
Budget $767,480
REMAINING BUDGET – Contingency Against Original Estimate
$187,685
under the Funding Agreement
Risks & Opportunities
Finance Risks Mitigation
Final contract value exceeds budget. Risk partly mitigated by a lumpsum contract.
Contingency using the original estimate under the
Funding Agreement is at 24% or $187,685. Under
the Funding Agreement, overall project contingency
(an additional $1.65M) is available if required
subject to TMR approval.
Page 20 of 28
Section 21
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
Time (program) risks Mitigation
Delays due to UnityWater live connection M&K Pipelines (QLD) Pt Ltd scope is to submit the
works (UnityWater self-performs live Private Works Application within 10 business days
connections as required by their policy and from Contract Award, which provides UnityWater as
conditions). much time as possible to plan and resource their
scope for live connections.
M&K Pipelines (QLD) Pty Ltd scope is to procure all
materials to avoid risk of material supply issues for
live connection works.
M&K Pipelines (QLD) Pty Ltd is highly skilled in
constructing watermains and have extensive
experience working for water authorities including
UnityWater and understands their requirements.
Delays affecting the main civil contract. M&K Pipeline (QLD) Pty Ltd) program was the
shortest duration compared with all other tenderers.
Using the tender program submitted, the current
float until the watermain contract affects the main
civil contract is in the order of 4 weeks.
M&K Pipelines (QLD) Pty Ltd can add additional
resources if required should the program require
acceleration or mitigation of delays.
Safety Risks Mitigation
M&K Pipelines (Qld) Pty Ltd fails to ensure M&K Pipelines (QLD) Pty Ltd will be appointed as
the work is conducted safely and in the Principal Contractor responsible for workplace
accordance with minimum standards. health & safety for the site.
Prior to commencement of construction, M&K
Pipelines (QLD) Pty Ltd management plans, Safe
Work Method Statements, Job Hazard Analysis (or
similar) and other documentation will be submitted,
reviewed, and accepted by Council.
Council will undertake surveillance, regular safety
audits and inspections throughout the construction
period.
Scope & Quality Risk Mitigation
The Contractor fails to construct the scope of M&K Pipelines (QLD) Pty Ltd is highly skilled with
work to the minimum standard. constructing watermains and have extensive
experience working for water authorities.
The quality of workmanship in the field will be
monitored with regular Council surveillance with
availability of technical support from the
engineering consultant if required.
UnityWater requires M&K Pipelines (QLD) Pty Ltd
to submit quality documentation, test reports etc
prior to undertaking live connections and all quality
documentation needs to be submitted prior to
Practical completion achieved.
Page 21 of 28
Section 22
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
Resource Risk Mitigation
Scope, quality, safety, and program are M&K Pipelines (QLD) Pty Ltd) have nominated a
affected due to resource shortages. highly capable team for this project and can add
additional and appropriately skilled resources as
required.
Council have added an external resource (Capital
Works Consultant) who has been procured as a
dedicated resource to provide project management,
surveillance, and contract administration support.
Council can engage the engineering consultant
responsible for the design to attend inspections if
required.
Council can utilise internal resources to attend
inspections or assist with documentation if required.
Consultation
External Consultation - Community & Stakeholder
Roadpro have been engaged to provide community and stakeholder communication support.
Early works (including the watermain relocation) have been communicated since the initial
stages of the final design process, updating the community and stakeholders about upcoming
activities and their impacts. Communication material includes project newsletters, Facebook
posts and stakeholder emails.
Further communication activities are planned in conjunction with TMR to coincide with the
contract award to M&K Pipelines (QLD) Pty Ltd and the completion of the detailed design.
Separate consultation has been made with TMR (party to the Funding Agreement) regarding
this tender, program, and budget.
Internal Consultation
Corporate Services (Procurement)
Infrastructure Services (Infrastructure Planning, Design and Delivery)
Departments/Sections Consulted:
Chief Executive Officer Community Services x Corporate Services
Executive Support Director Director
Community Development Financial Services
Community Facilities Fleet
Libraries & Galleries ICT
Local Laws x Procurement
Waste & Environmental Health Property
Revenue Services
Executive Services Environment & Sustainable Development x 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 x Infrastructure Planning,
Design and Delivery
Page 22 of 28
Section 23
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
Page 23 of 28
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
NOOSA SHIRE COUNCIL —_ Weighted Attribute Evaluation Spreadsheet - Final Evaluation ATTACHMENT 1
Peewee Yemrrtipeineetiwnemanteeron |
(Conforming Tenders Only) {excl of GST)
1
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3
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5
6
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1 2 3 4 5 6 7
Py isd ra | Ofer cnteey tet | evctopmene | Dione Pryted | Dormmay Pry Ld |
spatisyanesorcng | tse | | soso | wo | so | oo | om | ss | ex | wo | so | oo | uso | os | 27s |
fonractapevience Bcapecty | asx | wo | zo | so | 750 | so | 750 | 7m | sso | as | 67 | 10 | 500 | oo | 2350 |
Metrodstosy | me || sso | sr | tao | strs | cas | oe | seo | a | rao | oa | rao | oe | 2720 |
cusey Tm | co | mm | rm | os | cso | co | so | o | cm | oo | soo | co | so |
fcsnwaseey || | tm | | as | ms | ame | ms | ae | os | ae | | a0 | © | 355 |
Contitutontotecsitconomy ||? | as | sy | ees | 2 | om | ss | 20 | 2 | tos | oe | am | ov | aes |
Feet Tectnicatscore | me | ots, | ws |e | ease | sass | sono | ss
rotal Fees (Pc) 30% $589,466 $649,200 $709,586 $923,920 $999,453
erage Fees (PAV) $e $740,224
Price Score ee
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Page 23 of 28Section 24
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
8 TOURISM FUNDING AGREEMENT REVIEW PROCESS
Author Chief Executive Officer, Brett de Chastel
CEO’s Office
Index ECM/ Subject/ Tourism
Attachments Nil
EXECUTIVE SUMMARY
Nil.
RECOMMENDATION
That Council note the report by the Chief Executive Officer to the General Committee Meeting
dated 12 July 2021 and note that the CEO will work through a review process with Tourism
Noosa with the intent of finalising a new Funding Agreement for consideration by Council by
the end of 2021 noting that any new agreement will not commence until 1 July 2022.
REPORT
The purpose of this report is to put in place a process to review and develop a new funding
agreement between Noosa Council and Tourism Noosa. This report will set out the background
and history of funding agreements between the two organisations and a suggested process
and timing for the development of a new funding agreement. The current funding agreement
expires on 30 June 2022.
1. Background and History of Funding Agreements between Noosa Council and
Tourism Noosa
Tourism Noosa and Noosa Council entered into their first funding agreement in 2000/01,
shortly after the establishment of Tourism Noosa. That organisation was established in 2000
jointly by the tourism sector and Council to take the lead on marketing and promotion of the
Noosa region and ongoing development of the Noosa brand. Council assisted in the
establishment of the Constitution for Tourism Noosa which was based on a representation
model.
During the 2000’s Council and Tourism Noosa had a series of funding agreements setting out
how the funds were to be used. Tourism Noosa acted as the Local Tourism Organisation
(LTO) and has become recognised as one of Australia’s premier LTO’s. (The Regional
Tourism Organisation (RTO) for the broader Sunshine Coast region is Visit Sunshine Coast
which covers the Sunshine Coast Council, Noosa Council and Gympie Council areas.)
During the amalgamation years, Tourism Noosa continued to operate under the Sunshine
Coast Regional Council with funding provided via a formal agreement.
At de-amalgamation in 2014, Noosa Council inherited a number of agreements from the
Sunshine Coast Regional Council (SCRC), namely:-
A funding agreement between Council and Tourism Noosa for funding of $1,745,928 pa
to undertake marketing and tourism promotion for the Noosa area;
A funding agreement between Council and Sunshine Coast Destinations Limited (SCDL)
(now called Visit Sunshine Coast) as the RTO for funding of $500,000 pa to support
regional tourism marketing; and
A funding agreement between Council and Ironman Australia for funding of $270,000 pa
as sponsorship of the Noosa Triathlon.
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Section 25
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
The above agreements were entered into by SCRC prior to amalgamation and effectively
transferred to Noosa Council on de-amalgamation on 1 January 2014.
On 1 July 2015, Noosa Council terminated the RTO funding agreement with SCDL and at that
time, Council and Tourism Noosa entered into a new 2 year funding agreement that added an
extra $500,000 of funding to Tourism Noosa to their previous funding level. This agreement
allowed Tourism Noosa to determine the extent of funding they wished to allocate to regional
tourism opportunities and projects via the RTO.
Also, at the end of the 2015 calendar year, the sponsorship agreement with Ironman Australia
concluded and the $270,000 triathlon sponsorship funding was allocated to Tourism Noosa
from 2016 for Tourism Noosa to liaise directly with Ironman Australia to determine sponsorship
arrangements for the Noosa Triathlon.
On 1 July 2017, Noosa Council entered into a further agreement with Tourism Noosa for
funding. This was a 3 year agreement with a two year option (which was subsequently
exercised) and expires on 30 June 2022. The key elements of this agreement were:-
Total annual funding of $2.52M was provided and the term of the funding agreement was
linked to the then Noosa Tourism Strategy 2017-22 (hence the total 5 year term).
The funding agreement provided that the annual funding could not be reduced, thus
providing certainty of funding for Tourism Noosa to allow for multi-year planning.
The agreement required Tourism Noosa to maintain a marketing cash contingency of
$350,000. Essentially, this was to ensure that Tourism Noosa maintained a cash reserve
in its bank account that could be used in the case of an unforeseen event. Potential
examples that were given at the time included a pilot strike, weed infestation on main
beach, major weather events etc. As it turned out, a worldwide pandemic was the trigger
for that contingency reserve being accessed in 2020. In hindsight, including this
requirement in the 2017 agreement at that time was a good initiative.
Improved reporting requirements including:
Providing an annual report (including a copy of the audited financial statements) to
Council by 30 November each year. These are reported to Council each year to
ensure that these are a matter of public record.
Providing an annual Business Plan to Council by 15 March each year. These
Business Plans include detailed financial information including a statement of
comprehensive income, statement of financial position and statement of cash flows
and key performance measures that link to the Tourism Strategy Noosa 2017–
2022.
Twice a year (in February and August) Tourism Noosa were required to present to
Councillors on their progress in relation to their activities, KPIs, financial progress
and generally to keep the Councillors informed about Tourism Noosa’s activities.
This has generally been undertaken over the life of the agreement except for some
periods during the pandemic.
Over the life of the 2017-2022 agreement, $12.6M of funding has been allocated to Tourism
Noosa making this one of Council’s most significant financial agreements.
2. Proposed Timing and Process for finalising a new Funding Agreement
The current funding agreement expires on 30 June 2022. Tourism Noosa have expressed a
desire to finalise a new agreement as soon as practical. This certainly makes sense as it
provides funding certainty for forward planning in future years for both Council and Tourism
Noosa.
The proposed process to negotiate a new agreement is as follows:
Timing – it is anticipated that a new funding agreement could be agreed to between
Page 25 of 28
Section 26
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
Council and Tourism Noosa by December 2021. This would provide a 6 month lead time
before the agreement commenced which would assist both Council and Tourism Noosa
in planning for future budgets. The new agreement needs to be adopted by both Council
and the Tourism Noosa board.
Key Funding agreement issues - there are a range of issues to be negotiated in the
funding agreement but like any funding agreement, the two key issues are (i) amount of
the proposed funding and (ii) term of the agreement. There will also be other terms and
conditions but these are, inevitably, some of the key matters to be determined.
Opportunities – there is opportunity to improve some of the performance measures and
reporting compared to the current agreement. This would represent an ongoing maturing
of the relationship between Tourism Noosa and Council and support enhancement of
transparency for the funding agreement.
Transparency – both Tourism Noosa and Council have expressed a desire to make this
process and funding as transparent as possible. Opportunities to enhance this
transparency will be explored as part of this process.
Legal review - there will need to be time for both Tourism Noosa and Council to have the
draft funding deed reviewed by their respective lawyers before the document is
presented for consideration by both the Tourism Noosa Board and Council.
Good Governance and financial management - this funding agreement represents one
of the most significant financial commitments that the Council makes given the total value
over the life of the funding agreement. The current agreement involved a total payment
of $12.6M from Council to Tourism Noosa over the life of that agreement. Both Tourism
Noosa and Council share a desire for good governance and strong financial
management associated with the expenditure of these funds. To support this, it is
proposed that:
Council, in conjunction with Tourism Noosa re-look at the current governance
model that has been in place for 20 years to see whether it needs to be updated.
Previous discussions with the chair of Tourism Noosa indicates that Tourism
Noosa is looking at this issue already. The governance arrangement are based
on the Constitution which is largely unchanged from 2000. A review should be
undertaken to look at the governance arrangements to make sure that they are
“future fit”.
Council, in conjunction with Tourism Noosa undertake a review the internal
financial management processes to ensure that appropriate controls are in place.
As indicated above, this agreement involves considerable funding and Council
(and Tourism Noosa) need to be certain that good internal controls are in place to
manage this.
In short, these reviews are designed to ensure that Council and Tourism Noosa
have comfort that the right governance and financial controls are in place so that
public funds are well managed.
Previous Council Consideration
Ordinary Meeting, 7 May 2015, Item 8, Page 10
That Council note the report by the Chief Executive Officer to the General Committee Meeting
dated 4 May 2015 and authorise the Chief Executive Officer to enter into a 2 year funding
agreement with Tourism Noosa in accordance with the proposed terms and conditions outlined
in the report.
Ordinary Meeting, 7 August 2017, Item 3 Page 7
That Council note the report by the Chief Executive Officer to the Services and Organisation
Committee Meeting dated 8 August 2017 and authorise the Chief Executive Officer to enter
Page 26 of 28
Section 27
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
into a Funding Agreement with Tourism Noosa generally in accordance with the terms and
conditions set out in the draft Funding Agreement provided at Attachment 1 to the report.
Ordinary Meeting 19 March 2020 (Mayoral Minute), Item 1 Page 3
That in relation to the Coronavirus (COVID-19) Pandemic, Council:
A. ….
B. Approve the request by Tourism Noosa for it to access the Marketing Contingency
Reserve in accordance with section 7 of the Funding Agreement between Noosa Council
and Tourism Noosa, noting that Tourism Noosa will determine the timing and approach
of future marketing in consultation with the tourism sector and Council.
Finance
There is no cost in the development of this new agreement. However, as noted in the report,
there is considerable annual funding provided to Tourism Noosa for promotional activities. That
funding is currently set at $2.52M pa which is included in the 2021/22 Council budget.
Risks & Opportunities
Council has recently been through a process to develop a new agreement with the Noosa
Biosphere Reserve Foundation (NBRF) that addresses funding, KPIs, ongoing working
relationships etc. There is an opportunity that such an agreement may provide a good basis
for the types of issues that need to be addressed in the new agreement with Tourism Noosa.
Council and Tourism Noosa have always had a strong working relationship. This new funding
agreement is an opportunity to work closely together to maintain Noosa’s position as a leading
tourism destination.
The expenditure of significant public funds on an activity obviously requires good governance
and financial management practices in place. The renewal of this agreement is an opportunity
to re-look at the governance and financial controls to ensure that public funds are well
managed. This can be done in conjunction with Tourism Noosa.
Consultation
External Consultation - Community & Stakeholder
Chairperson of Tourism Noosa
CEO of Tourism Noosa
Internal Consultation
Departments/Sections Consulted:
x Chief Executive Officer Community Services Corporate Services
Executive Support Director Director
Community Development Financial Services
Community Facilities Fleet
Libraries & Galleries ICT
Local Laws Procurement
Waste & Environmental Health Property
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 27 of 28
Section 28
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
7 CLOSED SESSION
Nil.
Page 28 of 28
GENERAL COMMITTEE MEETING AGENDA 12 JULY 2021
7 CLOSED SESSION
Nil.
Page 28 of 28