2014-02-25 Planning & Organisation Committee Meeting Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                              25 FEBRUARY 2014


RECOMMENDATION

That Council note the report from the Co-ordinator Procurement and Fleet to the Planning &
Organisation Committee dated 25 February 2014 regarding progress to date with the review of
leased vehicles transferred as part of the de-amalgamation process.



BACKGROUND INFORMATION
As part of the de-amalgamation process a number of Sunshine Coast Regional Council (SCRC)
leased vehicles were required to be transferred to Noosa Council according to a methodology for
the allocation of plant and equipment agreed by the Transfer Committee.

The methodology effectively stated that vehicles would transfer with the respective employee
identified to transition back to Noosa Council. A significant number of vehicles surplus to
Council’s needs were transferred, and given the significant annual costs of operating these
vehicles a review commenced immediately after 1 January 2014 to rationalise the number of
vehicles required to deliver operational services going forward.

PREVIOUS COUNCIL CONSIDERATION
Nil.

REPORT

1.     Vehicles Numbers Pre Amalgamation
Prior to amalgamation Noosa Council had a fleet of approximately 115 light vehicles. Of this fleet
approximately 20 vehicles were utilised by water and sewerage (17) and building certification (3)
operations. Assuming these services were not provided by Council as is currently the case, the
vehicle fleet prior to amalgamation was approximately 95 vehicles.
2.     Vehicles Transferred
SCRC originally identified 124 leased vehicles to transfer to Noosa Council. Following review and
negotiation the final number of leased vehicles to transfer was reduced to 109. It should be noted
that former SCRC Councillors Green and Wellington elected to purchase their vehicles that were
on the transfer list, rather than allow Noosa to take on the ongoing liabilities for these vehicles.

The table below provides a breakdown of the leased vehicles that transferred by type, and also
includes the estimated annual cost to operate the vehicles (includes fuel, lease cost, insurance,
FBT costs).

 Vehicle Type         Number       Annual        Annual
                                   Cost*         Cost    /
                                                 Vehicle
 Sedan                1            $13,659       $13,659
 Wagons               36           $566,911      $15,748
 Hatch                4            $51,067       $12,767
 Utes 4x2             23           $271,330      $11,797
 Utes 4x4             38           $521,098      $13,713
 Vans                 6            $77,129       $12,855
 Truck                1            $37,304       $37,304

 Total                109          $1,538,498 $14,115
* Includes FBT



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