2014-01-13 Item 6.3 Appendices 1-5

to reduced throughput. The landfill will readily accommodate waste from both the Proponent
Council and Remaining Council for a further 20 years with enough land for future expansion.
QTC has assumed that this arrangement will be agreed between the Proponent Council and
Remaining Council and negotiated on commercial terms (including a margin for risk). QTC
has not reflected this arrangement in the forecast of the Proponent Council as this would
involve detailed analysis of the Waste business.

Collection

Existing Council will call for tenders for regional waste collection in November 2012. This
contract will be awarded in April 2013 and commence in July 2014 for seven years. The tender
is likely to proceed on the basis that the contract can be separated upon de-amalgamation.
SCRC has advised that the existing arrangements will need to be extended for up to two years
while finalising the terms of this contract and will involve an increase in annual costs of
approximately 5 to 10 per cent. QTC has included the cost of extending the contract within
the materials and services costs of the Proponent Council in FY2015 and FY2016.

Materials recycling

A tender is underway based on a single regional re-cycling facility. The contract allows for
transport out of the region to a new bulk haul recycling transfer facility. The Proponent
Council could participate in the arrangement or transport out of the region (to Gympie, Wide
Bay or Petrie). QTC has not allowed for any additional costs.

4.1.3 Airport

The Proponent Council will have no involvement in the ownership or management of the
airport following de-amalgamation.

4.1.4 Maroochydore Principal Activity Centre

The Proponent Council will have no involvement in the ownership or management of the
PAC for the region following de-amalgamation.

4.1.5 Caloundra South Urban Development Area

The Proponent Council will have no involvement in the ownership or management of the
Caloundra South Urban Development Area following de-amalgamation.


4.2      Financial analysis
QTC derived a set of financial forecasts for the Proponent Council after considering the
financial information provided by the Existing Council and the Proponent Council.




De-amalgamation Analysis of Sunshine Coast Regional Council                                Page 22