Services & Organisation Committee Meeting - November 2023
Date: Tuesday, 7 November 2023 at 1:30PM
Location: Noosa Shire Council Chambers , 9 Pelican Street , Tewantin , QLD 4565 , Australia
Organiser: Noosa Shire Council
Duration: 00:21:52
Synopsis: Lease renewal: One-year for Sunrise Shops tenant balancing equity and stability, Capital program pressures prompt deferrals and controlled overruns, Grant caution and workforce planning emphasized.
Meeting Attendees
Committee Members
Amelia Lorentson Joe Jurisevic Frank Wilkie Executive Officers
Acting Chief Executive Officer Larry Sengstock Acting Director Infrastructure Services Shaun Walsh Director Corporate Services Trent Grauf Apologies (Did Not Attend)
AI-Generated Meeting Insight
Key Decisions & Discussions Amelia Lorentson: Opened meeting; noted no public attendance and an apology from Mayor Clare Stewart (00:00; Minutes 1, Apologies). Committee: Confirmed prior minutes unanimously (00:28; Minutes 2). Shop 6, Sunrise Shops: One-year lease renewal to Cartor Pty Ltd approved, commencing 28 Apr 2024; tender exemption under Local Government Regulation s236(1)(c)(iii) for existing tenant (5.1; Minutes 5.1). Robyn Mercer: Rationale: multiple “moving pieces” at centre (new anchor IGA, Shop 7 Butchers of Noosa fit-out, roof/guttering works) and nearby aged care build; short term provides operational stability before setting future leasing strategy (01:41–03:35; Minutes 5.1). Frank Wilkie: Queried why not a longer term for “excellent” tenants; officer confirmed tenant accepted the 1-year term to April 2025 (02:46–05:17; Minutes 5.1). Joe Jurisevic: Sought context on typical tenures; officer: anchors longer, new butcher 5-year base; bakeries typically 3–5 years, but balancing market equity and stability presently (05:24–06:15; Minutes 5.1). Amelia Lorentson: Asked about construction impacts/parking; officer: some challenges managed collaboratively; no concessions planned; footfall steady and up post‑IGA per smart meters and IoT counters (06:19–07:19; 07:32–08:20; Minutes 5.1). Capital Program: Committee noted status report for 2023/24 as at 30 Sep 2023 (Item 6.1; Minutes 6.1). Officer summary: $51.3m capital program ($19.5m carry forwards); Infrastructure $43.3m; $7.7m spent (15%) + $8.7m commitments; reseals $1.4m of $5m; 74 multi-year projects; Disaster Recovery now >$100m running in parallel; grants $10.7m (09:25–10:58; Minutes 6.1). Shaun Walsh: Sector-wide constraints (resourcing, costs) evidenced by Brisbane budget trim and PM’s Queensland project scoping announcements; Noosa experiencing cost overruns (Edward Park, SEMP/Dog Beach Sand Nourishment, VHF) but funding reallocated to “do the job properly” (12:51–15:26; Minutes 6.1). Shaun Walsh: BR2 will propose deferrals to match deliverability; “green/yellow/red” list approach to set expectations; three‑year workforce plan underway due to persistent scale; carryovers jumped to $19m—signalling capacity strain (13:46–15:26; Minutes 6.1). Councillors: Emphasised prioritising scope clarity, realistic cost estimates, and quality over trying to do too much (16:41–17:24; Minutes 6.1). Grant funding posture: Caution urged—delivery requires internal resourcing often not budgeted; avoid chasing grants without capacity (17:26–18:32; Minutes 6.1). Resourcing updates: Design Coordinator hired (enabling Noosa Junction master planning); acting manager in place; transport/traffic coordinator outcome pending to tackle backlog (19:00–19:39; Minutes 6.1). Sundial Park: Pump track widely praised; draft master plan includes more shade, paths, furniture; project bid intended for future years (19:39–20:44; Minutes 6.1). Contentious / Transparency Matters Amelia Lorentson: Noted absence of public/deputations; meeting proceeded without community input (00:00; Minutes 4). Robyn Mercer: Lease term shortened versus typical 3–5 years; justified as balancing market equity obligations and centre stability amidst concurrent changes (04:42–05:15; Minutes 5.1). Councillors/Officers: Candid acknowledgement of delivery slippage, cost overruns, and upcoming deferrals to maintain quality and budget integrity (13:46–17:24; Minutes 6.1). Report format: Commended for clarity and project-by-project status visibility, aiding oversight (11:20–11:56; Minutes 6.1). Legal / Risk Lease compliance: Renewal relies on Local Government Regulation 2012 (Qld) s236(1)(c)(iii) tender exemption for existing tenant—minimises probity risk if strictly confined to 12 months and current lessee (Minutes 5.1). Market equity: Officer flagged duty to equitably offer space to market under Local Government Act/Regulation; short term mitigates risk of bypassing competitive process (04:42–05:15; Minutes 5.1). Program risk: Rising carryovers and sector capacity constraints elevate delivery and reputational risk; BR2 deferrals and workforce plan are prudent risk treatments (13:46–15:26; Minutes 6.1). Financial control: Explicit acceptance of targeted cost overruns (Edward Park, SEMP, VHF) with reallocation signals controlled variance; ensure Council resolutions/documented variations to meet Qld procurement governance (12:51–15:26; Minutes 6.1). Grant risk: Hidden staffing costs can render grants net-negative; adopting capacity-first screening aligns with sound financial management and statutory obligation to achieve value for money (17:26–18:32; Minutes 6.1). Environmental Concerns Shaun Walsh: SEMP/Dog Beach Sand Nourishment funded sufficiently to meet scope/quality; indicates proactive coastal asset resilience investment (14:42–15:26; Minutes 6.1). Sundial Park: Future amenities (shade/paths) planned via master plan—improves heat resilience and accessibility while staging delivery responsibly (20:17–20:44; Minutes 6.1). Planning and Master Planning Noosa Junction: Master planning initiated after filling Design Coordinator role; engagement with traders planned—supports centre revitalisation with stakeholder input (19:00–19:39; Minutes 6.1). Sunrise Shops tenancy mix: Short lease horizon allows assessment post‑IGA and Shop 7 butcher fit‑out; future leasing strategy to reflect community needs and market conditions (01:41–04:13; Minutes 5.1). Infrastructure and Disaster Recovery Delivery Program scale: Capital $51.3m plus Disaster Recovery >$100m in parallel; 62 active projects supported by team with 74 multi-year items—capacity pressure evident (09:25–10:58; Minutes 6.1). External environment: Hot construction market easing but still constraining delivery; impacts mirrored across SEQ and all government tiers, with Olympics pipeline intensifying demand (11:56–16:16; Minutes 6.1). Governance improvements: New project initiation docs to strengthen time/resource/cost programming and forecasting before budget adoption (17:04–17:24; Minutes 6.1). Community interface: Construction‑related parking pressures around Sunrise managed with aged care builders; footfall stable/increasing, supporting business continuity (06:19–08:20; Minutes 5.1).
Official Meeting Minutes
MINUTES Services & Organisation Committee Meeting Tuesday, 7 November 2023 1:30 PM Council Chambers, 9 Pelican Street, Tewantin Committee: Crs Amelia Lorentson (Chair), Joe Jurisevic, Clare Stewart, Frank Wilkie “Noosa Shire – different by nature” SERVICES & ORGANISATION COMMITTEE MEETING MINUTES 7 NOVEMBER 2023 1. ATTENDANCE & APOLOGIES COMMITTEE MEMBERS Cr Amelia Lorentson (Chair) Cr Joe Jurisevic Cr Frank Wilkie NON COMMITTEE MEMBERS Nil EXECUTIVE Acting Chief Executive Officer Larry Sengstock Acting Director Infrastructure Services Shaun Walsh Director Corporate Services Trent Grauf 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 10 October 2023 be received and confirmed. Carried unanimously. 3. PRESENTATIONS Nil. 4. DEPUTATIONS Nil. 5. REPORTS FOR CONSIDERATION OF THE COMMITTEE 5.1. SUNRISE SHOPS - SHOP 6 LEASE RENEWAL Committee Recommendation Moved: Cr Frank Wilkie Seconded: Cr Joe Jurisevic That Council note the report by the Property Advisor - Commercial Property to the Services & Organisation Committee Meeting dated 7 November 2023: A. Approve the lease renewal to Cartor Pty Ltd for Shop 6, Sunrise Shops for twelve (12) months commencing 28 April 2024. SERVICES & ORGANISATION COMMITTEE MEETING MINUTES 7 NOVEMBER 2023 B. Apply the exception to the requirement for tendering of the lease under Section 236 (1) (c) (iii) of the Local Government Regulation as the lease renewal is to the existing tenant. Carried unanimously. 6. REPORTS FOR NOTING BY THE COMMITTEE 6.1. CAPITAL PROGRAM 2023/24 DELIVERY STATUS Committee Recommendation Moved: Cr Joe Jurisevic Seconded: Cr Frank Wilkie That Council note the report by the Acting Infrastructure Planning, Design & Delivery Manager to the Services & Organisation Committee Meeting dated 7 November 2023 providing an update on the delivery of the 23/24 Capital Program as at 30 September 2023. Carried unanimously. 7. CONFIDENTIAL SESSION Nil. 8. MEETING CLOSURE The meeting closed at 1.54pm
Meeting Transcript
Amelia Lorentson 00:00.000
Services & Organisation Committee Meeting, Melbourne Cup Tuesday, the 7th of November, and the time is now 1:30 pm. I declare the meeting open, and I'd like to start with an Acknowledgement of Country. I would like to respectfully acknowledge the Kabi Kabi People as the Traditional Custodians of the lands 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. Welcome Councillor Wilkie, welcome Councillor Joe Jurisevic, and Acting CEO Larry Sengstock. There is an apology from the Mayor, Clare Stewart. I note that there's no other Councillor in attendance today, and no one in the gallery. So I'll start with confirmation of minutes. Can thank you, Councillor Wilkie. And a seconder? No discussion, all in favour? Thank you. Presentations and deputations? There are none, so let's go straight to reports for consideration of the committee. 5.1 Sunrise Shops, Shop 6 Police. Welcome Robyn Mercer to the desk. Firstly, any conflicts of interest? No. And Trent, welcome and Robyn. I'll start just by asking, can you first just give us a summary or an overview of the report in front of us? Certainly, and good afternoon. Shop Robyn Mercer 01:43.398
The report in front of you today is seeking a one-year extension to an existing lease at Sunrise Shops, particularly in relation to shop 6, which is a bakery and cafe retail outlet. The current lease ends in April next year and we're seeking for a one-year extension. The reason for this is that over the past year at Sunrise Shops, we've had quite a few moving pieces, so to speak. We've had a new anchor tenancy established within the centre. Number of small capital projects. We have Shop 7 currently being fit out for a new retail offering and we've had the roof and guttering replacement ongoing, which has been quite a big piece of capital work. In light of that, we're looking to gain a period of operational stability, which will also give us some time to consider the future leasing strategy and tenancy offering at the site. Thank you. Why only one year? Again, I still don't understand they've been good tenants. Yes, they've been excellent tenants. And why are you opting for a one year extension rather than the five years like they've had in the past? Certainly. There's a number of reasons there. This lease extension will take them through to April 2025. So it is still quite a future looking period of time from present. We're looking to see how the IGA stabilises and we've got a Butchers of Noosa going in Shop 7 and we've also got the aged care opening up. So this isn't a process to cease the current kind of offering that we have. It's just probably letting the dust settle a little so that we consider what the future options are what the community needs are in the future. So to give the Council and the leaseholder more flexibility. That's right. I think we've got a great community and retail offering at the Sunrise Shops so it's not a matter of looking to change that up. It's probably just securing some time to consider what the next 10 years looks like there. Thank you. Joe Jurisevic 04:06.430
As far as I'm aware, there has been a bakery there for a long time. Wilkie, why would we want to retain a bakery at the shopping centre for a longer term than the short-term lease? Secondly, are we doing some sort of a review of the overall tenancy makeup that may lead into this, or with regard to why we're not extending this beyond a year? Robyn Mercer 04:42.645
There's no strategic focus on looking at something different into the future. I think what we're trying to do is strike a balance between our to comply with the Local Government Act and regulation about equitably offering spaces out to the market, whilst also retaining good retail product offering that we've got at the Sunrise Shops. So in light of that and the moving pieces that we've had the last year this seems to strike a balance. Are the tenants happy with that? Yes the tenants have accepted in writing that they'll enter into another year period through to April 2025. Thank you. Joe Jurisevic 05:24.229
Under normal circumstances what sort of lease arrangement would we be offering a tenant at the shopping centre? Robyn Mercer 05:31.452
What's a typical tenancy arrangement? The IGA or the chemist? IGA is probably a little bit unique in that it's an anchor tenancy so it's got a much longer tenure to it. The Butchers of Noosa lease that we recently entered into was a five-year initial base period. It. But I know it's probably one that I would want to discuss with Colliers around bakery offerings and typically what they go they got to market with. But absolutely, you'd be looking at a minimum of three years and then probably something up to five so that it's got enough weight in it for a business to be interested in outlaying anything up front and also longer term enough that it allows get established. Amelia Lorentson 06:19.587
In terms of impact on the adjoining construction, has it been a little bad for business? Robyn Mercer 06:29.200
There's been a few challenges along the way just in terms of the parking requirements during a construction period but we're managing that as best we can so working collaboratively with the aged care site and their builders to manage it yeah it's there's been a few challenges this year. Amelia Lorentson 06:51.634
In terms of concessions so we're allowing a 12 month extension to lease. Are there any concessions given that there is these challenges with the construction site adjoining the precinct, the shopping precinct? Robyn Mercer 07:11.904
Not at this stage. Concessions aren't on the cards for us. Amelia Lorentson 07:17.113
Sorry, that was my original question. How is business? Is the workers helping the business, not only being good for business? Yeah, look, I think Robyn Mercer 07:32.393
I can't speak to the individual shops and what their patronage is like. I know from the smart meters that we have set up every day between 1100 and 13 unique individuals visit the shopping centre each day and we know that we've got an IoT there that measures visitation and that's been a steady trend across the year and increased after the IGA started trading so I think that patronage levels and trading I would be comfortable saying that it seems to be performing well. Challenges like car parking for people who want to utilise the shops and go there that's all there's a little bit of back and forth there but we've been able to manage that fairly well this year so overall I wouldn't say impact no. Amelia Lorentson 08:25.218
Someone who frequents the shopping centre a bit Robin and maybe it's just the times that I go in and out it's parking's good. Okay thank you for the feedback. Great any more questions Councillor? No, thank you. Frank Wilkie 08:40.990
Happy to. Can I have a move please? Second I think you all in favour of a discussion. Thank you, Robyn. Amelia Lorentson 08:57.195
Okay now we'll go to report number, oh sorry the report's been noted by the committee. 6.1 Capital Program 2023/24 Delivery Status and welcome Shaun and Mel to the table. Mel, hey Shaun. Again can I ask if you could just give us a summary or overview of the report. Thank you. Mel 09:25.721
So this provides a status update on the capital works program as at the 30th of September. The total budget provision for capital works program is $51.3 million of that carry forwards were $19.5 million. The infrastructure team is responsible for $43.3 of that with the remaining $8 million relevant to community projects, fleet and other sort of projects like that. The disaster recovery program is now in excess of $100 million and is being undertaken in parallel to the capital works program at 30th of September, Council had expended $7 million, which is 15% of budget, and had another $8.7 million in commitments. The hot construction industry, which we've been experiencing few years, is noted to be improving, but continues to provide constraints to delivery of projects. The road reseal program has expended $1.4 of the $5 million budget, and our grant funding revenue is $10.7 of the $51.3 million. Design team are providing support to 62 projects, with a combined design and construction value of around $18.5 million, and the planning team are working on roughly $1.7 million worth of projects, which have a construction value in the future of over $55 million. There are currently 74 multi-year projects in the capital works program. Amelia Lorentson 11:05.028
That's a lot of money and programs and works and projects that are on the run it's yeah Mel 11:13.798
It is, it's a large program and it's exciting to be working with such large figures and involved projects for the community. Joe Jurisevic 11:27.270
I'm going to be playing a bit of catch up with regard to some of the projects but also getting lot of work done for the community. I think that's being acknowledged and appreciated with out there. I just want to say thank you for the format of this report is in the listing of the projects and their status there. I think that's actually a good overview of easily understood overview of the status of all the projects at this point in time. Thank you. Amelia Lorentson 11:55.495
Questions, Councillor Lorentson? Thank you, Madam Chair. Frank Wilkie 11:58.935
Yeah, like $51 million capital works program and that's not even to mention the $100 million disaster recovery. Program is running in parallel to these. So that's quite an accomplishment for the team to be overseeing and ultimately responsible for a program that massive. You mentioned the supply chain issues, the availability of staff, the over inflated costs, positions being. Unfilled. Well my question is how widespread are these challenges for other councils and also the construction industry generally and what are more Noosa specific problems if you can separate them out. Mel 12:49.062
I might defer to Shaun on that one. Shaun Walsh 12:51.156
If you refer to recent announcements by the Lord Mayor of Brisbane City Council who slashed their budget by 10% to be able to bring the program in on budget and more recent announcements of the Prime Minister about needing to you know reduce the scope of Queensland infrastructure projects is a good example that it's very widespread. Our colleagues in other local governments in South East Queensland are having exactly the same problems of resourcing staff and also being able to you know contain costs within reasonable parameters. You see in the number of briefings we've already had with Councillors and the Capital Works Executive about refining our program this year and some of the approaches we've taken on like Ed Webb Park you know that we've had significant cost overruns but we've committed the finances to be able to do the job properly. Also on the SEMP or the Dog Beach sand nourishment you know to redirect funds to actually and also on the VHF project. Now as part of BR2 business review, budget 2 we'll be coming back to Council with a landing on where you we're know, where it may at with the budgets need to be done and where what programs it may need other deferred to next financial year. Which is not necessarily a bad thing because we'll probably extend a lot of the budget but we don't have the resources in the budget to achieve the full list. And if you remember the briefings the we've had with you about the green list, the yellow list. Red it's going to be a further update on that so the Councillors have confidence and clarity about what we can deliver this year. In parallel to that sort of project programming through the Acting CEO, we're doing quite a substantial workforce planning process at the moment. Because these, the scale of our capital works program is not just confined to this year, our forecast for at least the next three years indicate this an ongoing scale at the same level. And, we're not resourced to be able to deliver this continuing scale. And if you look at our carryover budget, it's gone from 2 million up to 7 million and up to 19 million this financial year, which indicates we're not getting through the work. So we're preparing for a new initiative about how we resource infrastructure planning better for at least the next three financial years and that'll be considered as part of council's 24/25 budget process. Frank Wilkie 15:06.471
I want to thank you and your staff for being so upfront about the delivery challenges that we face and just laying it all on the line because that's reality and the open reporting has been very helpful for us to get our heads around what difficulties Shaun Walsh 15:25.156
To be a position where we're not delivering everything over budget. We're delivering the most important projects to Council to a good quality. That's probably my own personal view is that let's do it properly and get them to do it, you know, and some of the perhaps the less urgent things. Can wait until we've actually got the budget to do it properly again. Frank Wilkie 15:44.101
Very hard working team. Joe Jurisevic 15:46.041
It's clear the challenges that have come post COVID, the supply chains through COVID and post COVID are still struggling to arrange. The three levels of government all trying to deliver the large programs. Array of projects with an Olympics in the wind, the next 10 years are going to be challenging in trying to deliver capital work. Clearly it was across all those levels as a result of the number of major projects. Shaun Walsh 16:15.919
Mel, did you have anything to add to that statement? You know you're in the thick of it. Mel 16:20.219
I would definitely agree with the resourcing side of things and I think that allowing a little bit more flexibility with next year to have those most important or critical projects to Council, time and resourcing to be done to the top quality, I think it's going to provide a big benefit to the community. Frank Wilkie 16:41.952
So do the job, do it well, rather than try to do too much. Shaun Walsh 16:45.112
I think it's doing you so that's, you know, we're not talking about gold plating, that, but doing it to, you know, community and Council expectations, but also clearly articulating the scope of the work and the cost of the project before we commence the project as opposed to following it as a short form. And it's fair because Mel and Devon have been involved in a whole new process of project initiation documents. That put a lot more effort into programming, both time, resources and also costing, so that as we start planning for next year's financial budget, we've got even further improved confidence in the financial forecasting. Amelia Lorentson 17:24.523
Some more realistic cost estimates. And in terms of resourcing, interesting what you said actually got broadcast to forecast the resourcing because if we don't have the manpower we can't take up the jobs. And is that possibly like one of the learnings, you know, we've had these rivers of gold with grant funding. If they continue, would we change the approach for taking the grant funding? Would we be looking at, you I mean, know, I less, believe, not jump on everything, understanding these challenges? Shaun Walsh 18:01.646
Yeah, I think the key issue with grant funding is that, you know, it looks so shiny and this thing, but you also require resources to deliver it. And often you can have a grant, let's say half a million dollars, but you need to invest $200,000 in staff and time to actually deliver it, and you haven't have a budgeted for that. So, and I think it's about that when we're assessing grant fundings, and our program funding overall, that we've got the resourcing appropriately calculated in that we can deliver it. Amelia Lorentson 18:27.189
Terms of stump mill, what is the standpoint really like in infrastructure? Shaun Walsh 18:32.939
It's quite challenging. I think it's a fair point to say that at the moment. So, you know, when you're working on projects where you've got cost overruns and competing resources, then there's also a lot of employers at the moment jostling, you know, for new employees, it's a challenging space to be in at the moment, Amelia Lorentson 18:53.409
And in terms of key positions, are they all filled or are they equity-seeking Shaun Walsh 19:00.683
So we have successfully recruited the design coordinator role with Mitchell Allen starting recently and as a result we've been able to initiate the, that's right, the Noosa Junction master planning process that we've engaged with traders so start that project. We have acting manager of infrastructure planning, design and development, Michael Balestra, so who's doing great guns because that position was vacant for some time while the incumbent was on extended leave and I hope to be able to announce an outcome for the transport and traffic coordinator in the near future which will actually be able to give us, what's the word, legs on our, you know, backlog. Of transport and traffic projects. Amelia Lorentson 19:40.567
More question before we move. In Sundial Park, first of all, what a huge success, like seriously huge success. I hear from hinterland to Coast, people just travel, it's just a destination. Question is, are there plans to put in a shade or provide toilets at Sundial Park? Is that something that you guys are looking at doing? Deferred to Shaun, yeah? So the project was-- well, this is for this one. Did- Do you know that? No, I'll leave that one with you, thanks. The project manager. It gets asked when I'm at the park. I've only been asked for other picking time. Shaun Walsh 20:23.548
The pump track has actually developed draft master plan, including additional shelter and pathways and furniture and the like, and undertaken some focused consultation about that with our parks department, with the view to actually do project BID, so for future years. Amelia Lorentson 20:42.118
Thank you. Can I go to the next one, please? No. and seconder, Councillor Wilkie. Anyone wants to speak to the motion in front? Joe Jurisevic 20:55.263
Keep on doing a great job. Just acknowledge the difficult circumstances. Thank you very much. I pass on those regards. Thank you. Keep smiling. Amelia Lorentson 21:08.389
And let's keep telling our story. I'm going to keep a copy of this because we need to have a book or something in place so we can just pull out and just say this is what Council does every single day. Exactly. Wonderful. Thank you. Called the vote Amelia, I haven't all in favour please, unanimously. Excellent. There's no confidential session and I declare the meeting closed five minutes before the Melbourne Cup. Frank Wilkie 21:47.394
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