Services & Organisation Committee Meeting - July 2023
Date: Tuesday, 11 July 2023 at 1:30PM
Location: Noosa Shire Council Chambers , 9 Pelican Street , Tewantin , QLD 4565 , Australia
Organiser: Noosa Shire Council
Duration: 00:09:00
Synopsis: Contract awarded for Arkana Dr retaining wall to Sunshine Civil Solutions, Grant-funded, Durable rock design, Value-engineered, Probity/confidentiality upheld, Traffic managed w/ comms, Dry-season start, Unanimous approval.
Meeting Attendees
Committee Members
Joe Jurisevic Amelia Lorentson Frank Wilkie Non-Committee Members
Executive Officers
Acting Chief Executive Officer, Larry Sengstock Director Infrastructure Services, Shaun Walsh Apologies (Did Not Attend)
AI-Generated Meeting Insight
Key Decisions & Discussions Committee: Resolved to award CN00375 Retaining Wall Reconstruction – Arkana Drive to Sunshine Civil Solutions Pty Ltd for $409,904.22 ex GST and authorised the CEO to finalise the contract (Item 5.1). Amelia Lorentson: Confirmed attendance, noted observer in gallery, and advanced to Item 5.1 as the sole report for consideration (00:02; Item 5.1). Shaun Walsh: Stated the project addresses a long-standing stability issue first flagged in 2015; design commenced in 2019 and the wall will be a durable rock solution (01:50; Item 5.1). Shaun Walsh: Noted escalation in construction prices but said additional government funding will cover increases with no cost to ratepayers (01:50; 06:10; Item 5.1). Shaun Walsh: Explained value engineering reduced wall height to manage costs while keeping maintenance feasible via steeper batters (01:50; Item 5.1). Joe Jurisevic: Queried tender comparability; officers confirmed like-for-like scope among three tenders (02:56; 03:02; Item 5.1). Shaun Walsh: Observed current market behavior where some bidders price to avoid award, consistent with broader industry conditions (03:31; Item 5.1). Amelia Lorentson: Probed contractor solvency/contingency; officers cited financial due diligence, past performance checks, progress claims, and retention of sufficient funds to re-let if default occurs (04:06; 04:33; Item 5.1). Frank Wilkie: Sought assurance on full external funding and traffic impacts; officers affirmed grant coverage and partial road closures with property access maintained (06:10; 06:40; Item 5.1). Shaun Walsh: Outlined communications: targeted letterbox drops, designated council contact, and possible social media updates (07:23; Item 5.1). Amelia Lorentson: Noted key residents most impacted; officers targeting dry season start, as early as September–October, to avoid wet season delays (07:51; Item 5.1). Committee: Carried the recommendation unanimously; meeting closed at 1:40 pm (Item 5.1; Closure). Contentious / Transparency Matters Frank Wilkie: Flagged whether discussion had entered confidential territory while tenders were being referenced; chair acknowledged a confidential attachment and corrected course (03:08; 03:27; Item 5.1). Amelia Lorentson: Explicitly asked if council wished to go into confidential session before close; none sought, indicating only generalities of tenders were aired in open session (07:51; Closure). Shaun Walsh: Avoided disclosing specific tender details, speaking in general terms about market conditions and evaluation (03:31; Item 5.1). Community Expectations: Officers referenced resident expectations on wall “look and feel,” indicating prior engagement that influenced rock wall selection (01:50; 05:36; Item 5.1). Legal / Risk Confidentiality compliance: Tender pricing and evaluation material constitute confidential information; brief open-session mention was corrected, limiting exposure and aligning with Queensland Local Government Regulation 2012 confidential tender provisions (03:08; 03:27; Item 5.1). Procurement probity: Officers confirmed evaluation against financial capacity and past performance, consistent with council procurement policy and probity standards (04:33; Item 5.1). Contractor default risk: Progress claim structure and retained funds provide step-in capability to re-let the works if necessary, mitigating project completion risk (04:33; Item 5.1). Budget/funding risk: External grant coverage for cost escalation reduces ratepayer exposure; ensure grant conditions, milestones, and acquittals are tightly managed (06:10; Item 5.1). Construction risk: Traffic management with partial closures and resident access; communications plan reduces safety and reputational risks during works (06:40; 07:23; Item 5.1). Conflicts of Interest Amelia Lorentson: Called for conflicts on Item 5.1; none declared, consistent with obligations under the Local Government Act 2009 for managing prescribed/declarable conflicts (01:50; Item 5.1). Community Impact & Communications Traffic/access: Partial closures on Arkana Drive with resident driveway access maintained; residents must follow traffic control (06:40; Item 5.1). Notifications: Letterbox drops to directly affected area and potential social media posts; designated council contact for updates (07:23; Item 5.1). Timing: Targeting dry season start (Sep–Oct) to reduce weather delays and community disruption (07:51; Item 5.1). Amenity/durability: Rock wall chosen for longevity and reduced maintenance disruptions in a reserve setting (05:36; Item 5.1). Procurement Market Conditions Shaun Walsh: Reported price escalation since initial estimates; some bids indicate lack of desire to win, a known market signal in constrained capacity periods (03:31; Item 5.1). Council response: Applied value engineering, rigorous evaluation, and leveraged external funding to maintain project viability without rate impact (01:50; 06:10; Item 5.1).
Official Meeting Minutes
MINUTES Services & Organisation Committee Meeting Tuesday, 11 July 2023 1:30 PM Council Chambers, 9 Pelican Street, Tewantin Committee: Councillors Amelia Lorentson (Chair), Joe Jurisevic, Clare Stewart, Frank Wilkie “Noosa Shire – different by nature” SERVICES & ORGANISATION COMMITTEE MEETING MINUTES 11 JULY 2023 1. ATTENDANCE & APOLOGIES COMMITTEE MEMBERS Cr Joe Jurisevic Cr Amelia Lorentson Cr Frank Wilkie NON COMMITTEE MEMBERS Cr Karen Finzel EXECUTIVE Acting Chief Executive Officer, Larry Sengstock Acting Director Infrastructure Services, Shaun Walsh APOLOGIES Cr Clare Stewart 2. CONFIRMATION OF MINUTES Committee Resolution Moved: Cr Frank Wilkie Seconded: Cr Joe Jurisevic The Minutes of the Services & Organisation Committee Meeting held on 6 June 2023 be received and confirmed. Carried unanimously. 3. PRESENTATIONS Nil. 4. DEPUTATIONS Nil. 5. REPORTS FOR CONSIDERATION OF THE COMMITTEE 5.1. CN00375 - RETAINING WALL RECONSTRUCTION - ARKANA DRIVE Committee Recommendation Moved: Cr Frank Wilkie Seconded: Cr Joe Jurisevic That Council note the report by the Project Officer to the Services & Organisation Committee Meeting dated 11 July 2023 and: SERVICES & ORGANISATION COMMITTEE MEETING MINUTES 11 JULY 2023 A. Award contract no. CN00375 Retaining Wall Reconstruction - Arkana Drive to Sunshine Civil Solutions Pty Ltd for the lump sum price of $409,904.22 (excl. GST); and B. Authorise the CEO to negotiate the final contract with Sunshine Civil Solutions Pty Ltd. Carried Unanimously 6. REPORTS FOR NOTING BY THE COMMITTEE Nil. 7. CONFIDENTIAL SESSION Nil. 8. MEETING CLOSURE The meeting closed at 1.40pm.
Meeting Transcript
Amelia Lorentson 00:00.000
I declare the meeting open. First, I'd like to begin by an acknowledgement to Country. I would like to respectfully acknowledge the Kabi Kabi people as the traditional custodians of the lands and and waters that form the region we call Noosa. Council pays its respect to elders past, present and future and welcomes the ongoing role that Indigenous people play within the Noosa community. Attendance and apologies. There are no apologies at the table and I note, oh excuse me, I note the Mayor pleased to refuse an apology for today. Also note in attendance Councillor Frank Wilkie and Councillor Joe Jurisevic and note that Councillor Karen Finzel is sitting as an observer in the gallery. Can I please request before commencing the meeting that everyone have their phones on silent or turned off. Confirmation of minutes, can I have a mover and a seconder? I'll move that Madam Chair. I'll second. Councillor Wilkie moving and Councillor Joe Jurisevic seconder. No discussion, all in favour? Thank you. Presentations and deputations, there are none. And we'll go straight to the reports for consideration of the committee. There is only one, 5.1, Retaining Wall Reconstruction, Arkana Drive. I'll ask if a staff member can join us at the table. And before I ask you to give us an overview of the report, can I ask, firstly, any conflicts of interest? No? Sure. Can you please just give us a summary or overview of the report? Shaun Walsh 01:50.696
This report proposes the reconstruction of a steep embankment on Arkana Drive at Noosa Heads. Stability issues were first identified in 2015. And then the design process undertaken from 2019. So this is a project that's been a long time coming. The residents have an expectation of a particular outcome. This is definitely a sort of a bit of a look and feel. There is a rock wall, you know. It has ended up being more expensive than anticipated as a result of recent escalation in construction prices. We are able to draw on additional government funding, so it's not at any expense to rate payers to proceed with the construction. We are out of We have done some value engineering in terms of reducing the height of the wall, even though it's quite long, which steepens the garden bed of batters at the top and the bottom. But it will still be an easy-to-maintain solution. And it should be a very long, durable solution for residents of Arkana Drive as well. The recommendation is to proceed with letting the tender for the construction to occur. Amelia Lorentson 02:53.036
Questions, councillors? Councillor Jurisevic. Yeah, sure. Joe Jurisevic 02:56.292
Looking at the three tenders, were the three tenders quoted for the same job? Shaun Walsh 03:02.112
Yes, the three tenders were quoted for the same job. Because there's chalk and cheese, but there's one price and they like the other. Frank Wilkie 03:08.472
Sorry, we're in confidential, aren't we? Joe Jurisevic 03:16.252
That's alright. My apologies, I didn't realise that hadn't been made. There's no mention of, there's no mention of confidential elements in there. Amelia Lorentson 03:27.312
It's an attachment. Oh sorry, it does say confidential, my apologies, my apologies. Shaun Walsh 03:31.872
I could answer the question generally, which is, in the current market we are seeing prices submitted which are clear indications that the construction entities actually don't want to construct the job, that if they're going to get Amelia Lorentson 04:06.004
How do we ensure that it isn't insolvent and has to be willing to pay this service and be that the works are completed. What's the contingency plan or has there been any, and I understand part of our procurement process and program process, that there is some disclosure required. Shaun Walsh 04:33.848
So firstly I think the price is a fair price, so I don't think it's a case of actually undercutting, you know, so I think that's the first thing. I think what consisted with more recent estimates that they should be able to complete the job fairly for this price and to achieve a reasonable profit. So that's the first thing. You can already see there's an escalation an escalation above what we initially estimated, which sort of occurs at the end. In terms of the procurement process, selection criteria include examination of financial performance and past performance of the company, so to actually meet specified requirements and of course during the construction process the process is subject to progress claims so in the event you know that they default to the project obviously we will actually inspect at the site and also make the progress claim and ideally the of the pricing is set up in a way so that you've got residual funds available to complete the work by another contractor. So that's the general process of the work through. It doesn't always run quite that smoothly but that's the general process so. Joe Jurisevic 05:36.456
I think the other element you mentioned there Shaun was a question I raised was regard to the rock wall that was something was decided with residents as to the the I think also that ease of maintenance for council perspective and also you know it's highly disruptive this sort of works in the middle of a reserve so having to come along and maintain perhaps cheaper construction prematurely you know would be just very disruptive to residents. And the nature of a wall of a rock wall they tend to last. Frank Wilkie 06:10.156
So just to clarify Shaun, it's an entirely grant funded project with the cost increases that's also going to be covered by external grant funding, so as you said there's no cost to ratepayers? There's no cost to ratepayers. And it mentions some traffic interference with local traffic. Any idea... Shaun Walsh 06:40.040
I'm not across the details of the traffic management councillor, but what I can do is once the appointment has been made, I can forward you the full details. And of course, any project like this has a peer communications plan with the residents, and we'll need to work My general understanding is that it only requires partial closure of the streets, and the properties should still be able to access their roadways, because they can sort of do the construction of the rider in the top and still have a stiff lane, but it will require the residents to exercise due care, and also following traffic control at all times. Frank Wilkie 07:13.604
And then in terms of, you mentioned the whole communication thing, is that, what involve? Does that involve letterbox drops to that street on the main road? How far would that extend? Shaun Walsh 07:23.688
It would normally just be the area that effectively works. Sometimes it's a bit more liberal in terms of thinking whether people would use our car and drive as a regular access route. route so and then so that's the regular that's the letterbox drops and be regular updates with the specific project manager within council contact and then it would also be subject we'll talk to our communications area about whether it's part part of of a a Facebook Facebook you know social media campaign to ensure there's a general residents awareness and colleagues thank you Amelia Lorentson 07:51.647
I'll imagine it's only residents that are immediately adjacent that'll be severely impacted because there are a number of ways of getting in and out of that area The report notes on page 5 that Arkana Drive will remain in Virginia the weeks before a traffic delay is expected. In terms of completion completion, when will the work start? Well that's why we're keen to actually start the works now while we have a drive period, so rather than going into the wet season. So if all is going well, I think it's as early as September or October. All in favour? No discussion. All good. Great. So I note there was a confidential attachment. Before I close the meeting I'll ask, does anyone want to go into confidential session? No, close the meeting. So now I'm going to close the meeting. I now declare the meeting closed at 1:40. Related Noosa Council Meetings
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