Services & Organisation Committee Meeting, 7 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)
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 00:00.180
Organisation Meeting, Melbourne Cup Tuesday, the 7th of November, and the time is now 1.30. I declare the meeting open, and I'd like to start with an Acknowledgement to 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 I'll move believe I have a mover? Thank you, Councillor Wilkie. And a seconder? No discussion, all in favour? Thank you. Presentations and deputations? There are no presentations and deputations. So let's go straight to reports for consideration of the committee. 5.1 Sunrise Shops, 6. Please. And I welcome Robyn Mercer to the desk. Firstly, any conflicts of interest? No. And Trent, welcome Trent 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? Robyn Mercer 01:42.041
Certainly, and good afternoon. 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 café 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. We've had a 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. Frank Wilkie 02:48.901
Why only one year? Again, I still don't understand why. 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? Robyn Mercer 03:01.820
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 seven 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 and what the community needs. In the future. Frank Wilkie 03:41.217
So to give the Council and the leaseholder more flexibility. Robyn Mercer 03:47.302
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 04:06.791
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 04:43.068
No, 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 obligations to comply with the Local Government Act and regulation about equitably offering spaces out to the market, whilst also retaining a 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 05:24.044
Under normal circumstances what sort of lease arrangement would we be offering a tenant at the shopping centre? What's a typical tenancy arrangement? The IGA or the chemist? Robyn Mercer 05:37.432
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. Initial base period. But I know it's probably one that I would want to discuss with colleagues around bakery offerings and typically what they go to market with. 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. Learning longer term enough that it allows for a business to get established. Amelia Lorentson 06:20.368
In terms of impact on the adjoining construction, has it been a little bad for business? Robyn Mercer 06:29.681
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 06:52.744
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 07:12.710
Not at this stage. Concessions aren't on the cards for us. Amelia Lorentson 07:16.292
No sorry, that was my original question. How is business? Is the workers helping the business, not only being good for business? Robyn Mercer 07:31.375
Yeah, look, I think 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 that we have 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 08:25.720
Someone who frequents the shopping centre a bit Robyn 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 08:40.537
Happy to. Okay can I have a move please? Amelia Lorentson 08:45.515
Second I think you all in favour of a discussion. Thank you Robyn, thank you Trent. Frank Wilkie 08:51.446
Thank you Robyn. Amelia Lorentson 08:57.575
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 09:27.253
So this provides a status update on the capital works program as at the 30th of September. The total budget provision for the 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 in to the to works the program. At 30th of September, Council had expended $7.7 million, which is 15% of the capital works program 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. The 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. And are currently 74 multi-year projects in the capital works program. Amelia Lorentson 11:09.479
And works and projects that are on the run it's yeah it Mel 11:13.761
Is, 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 11:27.040
Yeah, uh, I'm playing a bit of catch up with regard to some of the projects, but also getting a lot of work done for the community. I think that's being acknowledged and appreciated with some of the projects 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 readable and easily understood overview of the status of all the projects at this point in time. Thank you. Questions, Councillor Lorentson? Thank you, Madam Chair. Frank Wilkie 11:59.376
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 as well. 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. 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 12:49.836
Might defer to Shaun on that one. Shaun Walsh 12:51.678
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 reduce the scope of Queensland infrastructure projects is a good example that it's very widely 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 there's 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 also on the VHF project. Now as part of BR2, business review, Budget Review 2, we'll be coming back to Council with a landing on where we're at with the budgets and what programs may need other programs you know where it may need to be 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 we've had with you about the green list the yellow red list 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 um 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 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 will be considered as part of council's 24/25 budget process. Frank Wilkie 15:06.925
I want to thank you and your staff for being so upfront about the delivery challenges that we face. Just laying it all on the line because that's the reality and the open reporting has been very helpful for us to get our heads around what difficulties lie ahead. Shaun Walsh 15:24.566
Think we 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. Some, perhaps the less urgent things can wait until we've actually got the budget to do it properly again. Very very hard working team. Joe Jurisevic 15:46.302
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 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. That we're on the go. Shaun Walsh 16:15.979
Mel, did you have anything to add to that statement? You know you're in the thick of it. Mel 16:19.835
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 gonna provide a big benefit to the community Frank Wilkie 16:42.345
So do the job do it well rather than try to do too much Shaun Walsh 16:45.629
I think it's doing the job brief you know to scope so to that's you know we're not talking about gold plating we're not talking about that but doing it to you know community and Council expectations Joe Jurisevic 16:56.181
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 Shaun Walsh 17:03.744
It's feb's Mel and Devon have been involved in a whole new 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 some more realistic cost estimates Amelia Lorentson 17:27.358
Yeah and in terms of resourcing interesting you said we've got a 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 we've taken with grant would funding? We are be we looking at you know less like jump on everything understanding these challenges Shaun Walsh 18:01.812
Yeah I think the key issue with grant funding is that time you know 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 two hundred thousand staff and time and to actually deliver it and you haven't budgeted for that. So and I think it's about that when we're assessing grant Bunnings and when we're assessing our program funding overall that we've got the resourcing appropriately calculated in that we can deliver it. Amelia Lorentson 18:27.052
Terms of un-staffing role, what is this going to look like in the infrastructure? Shaun Walsh 18:33.199
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 it's a and then there's also a lot of employees employers at the moment who are jostling you know for new employees it's a challenging space to be in at the moment Amelia Lorentson 18:54.462
In terms of key positions are they all filled? The equity-seeking positions. Shaun Walsh 19:01.124
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 and we're engaged with the Noosa Junction traders so we've been able to an 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. Amelia Lorentson 19:38.261
Of transport and traffic projects one more question before we move. In Sundial Park, first of all, what a huge success, like seriously huge success. 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? Shaun Walsh 20:09.354
I'm not to Shaun yeah so um the project was for this one yeah um Amelia Lorentson 20:16.288
No, leave that one with you. The project manager it gets asked when I'm at the park. Shaun Walsh 20:20.574
I've only been asked for other picking time. The project manager for the um the pump track has actually developed a draft master plan including additional shelter and pathways and furniture and the like and undertaken some focus consultation about that with our parks department with the view to actually do a project bid so for future years. Amelia Lorentson 20:45.664
You. Joe and seconder, Councillor Wilkie. Anyone wants to speak to the motion in front? Joe Jurisevic 20:55.893
Keep on doing a great job. Thank you. Very much. I'll pass on those regards. Keep smiling help it Amelia Lorentson 21:08.950
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 the Council does every single day. Sorry? Have you called the provider? Sorry. All in favour please, unanimously. Excellent. There's no confidential session and I declare the meeting closed five minutes before the Melbourne Cup. 1:53 PM well done Madam Chair. Related Noosa Council Meetings
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