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 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
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 pays its respect to Elders past, present and future and welcomes the ongoing role that Indigenous people play within the Noosa community. Welcome Councillor Wilkie, welcome Councillor Joe Jurisevic and Acting CEO Larry Sengstock. There is an apology from the Mayor. Clare Stewart and I note that there is no other councillor in attendance today and no one in the gallery. So I'll start with confirmation of minutes. I'll move the motion. Can I have a mover? Thank you. Councillor Wilkie in a seconder. No discussion or 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, shop 6 lease. And I welcome Robyn Mercer to the desk. Firstly, any conflicts of interest? No. And Trent, welcome Trent and Robin. 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 01:41.737
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 cafe retail outlet. The current 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 we've had a number of small capital projects. We have shop seven 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. Fantastic. Amelia Lorentson 02:40.933
I'll throw it to the councillors. Anyone have any questions for Robyn or Trent? Thank you, Madam Chair. Frank Wilkie 02:46.573
Robyn, why only one ear? 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 03:01.595
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 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 and 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 what the next 10 years looks like there thank you Joe Jurisevic 04:13.889
The question I've got for Councillor Wilkie is why would we want to retain a bakery at the shopping centre for a longer term than the short-term lease? Secondly is, are we doing some sort of a review of the overall tenancy make-up that may lead into this or with regard to why we're not extending this beyond a year? Robyn Mercer 04:42.504
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. Frank Wilkie 05:15.300
Are the tenants happy with that? Robyn Mercer 05:17.040
Yes, the tenants have accepted in writing that they'll enter into another year period through to April 2025. Thank you. Joe Jurisevic 05:24.220
Under normal circumstances, what sort of lease arrangement would we be offering a tenant at the shopping centre? What's a typical tenancy arrangement? Certainly. The IGA or the chemist or any of those? IGA is probably a little bit unique in it's got a much longer tenure to it. that it's an anchor tenancy. The Butchers of Noosa lease that we recently entered into was a five year initial base period. But I know it's probably one that I would want to discuss discuss with colliers around bakery offerings and typically what they go 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 in outlaying anything up front and also longer term enough that it allows for a business to get established. Amelia Lorentson 06:19.641
In terms of impact on the adjoining construction, has it been a little bad for business? Robyn Mercer 06:29.161
There's been a few challenges along the way just in terms of the parking, 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, there's been a few challenges this year. Amelia Lorentson 06:51.607
In terms of concessions, so we're allowing a 12 month extension to the existing lease. to the existing lease. Are there any concessions given that there is these challenges with the construction site adjoining the shopping precinct? Robyn Mercer 07:11.849
Not at this stage concessions. concessions aren't on the cards for us, no. Not that you could actually be drawing in workers. Amelia Lorentson 07:19.812
Sorry, that was my original question. How is business, is the workers helping the business? Normally they're good for businesses. Yeah, look I think Robyn Mercer 07:32.395
I can't speak to the individual jobs and what their patronage is like. I know from the smart meters that we have set up up that we have every day between 1113 unique individuals visit the shopping centre each day and we know that we've got an IOT counter there that measures visitation and that's been established 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. Amelia Lorentson 08:20.084
Overall I wouldn't say an impact, no. Someone who frequents the shopping centre a bit often and maybe it's just the times that I go in and out, it's a parking school. Robyn Mercer 08:34.235
Okay, thank you for the feedback. Great. Any more questions, Amelia Lorentson 08:39.015
Councillor? No, thank you. Great. Happy to. Okay, can I have a move, please? Happy to move it, Chair. Second, I thank you all in favour of the discussion. Thank you, Robyn. Frank Wilkie 08:53.846
Thanks. Amelia Lorentson 08:57.366
Okay, now we'll go to report number... Oh, sorry. The report's been noted by the committee. 6.1, the capital program, 2023-24, delivery status. And welcome, Shaun and Mel to the table. Okay, Again, can I ask if you could just give us a summary or a view of the report? Thank you. SPEAKER_01 09:25.708
That's not a problem. So, this provides a status update on the capital works program is 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 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 $7.7 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 over the last 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 five million dollar budget and our grant funding revenue is 10.7 of the 51.3 million. The 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 dollars worth of projects which have a construction value in the future of over 55 million and there are currently 74 multi-year projects in the capital works program. Amelia Lorentson 10:58.813
How do you feel, Mel, throwing those numbers around? Like 74 million, 51 million, like that's a lot of money and a lot of programs and works and projects that are on the run. SPEAKER_01 11:12.456
It 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 11:20.976
I don't know about you, but I like throwing those sort of numbers around. 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 these easily Easily understood overview of the status of all the projects at this point in time. Thank you. Amelia Lorentson 11:56.109
Questions? Thank you, Madam Chair. Yeah, like $51 million capital works program. 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. 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. SPEAKER_01 12:49.226
I might defer to Shaun on that one. Shaun Walsh 12:51.106
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 Projects is a good example that it's very widespread. Our colleagues in other local governments in southeast Queensland are having exactly the same problems of resourcing staff and also being able to, you know, contain cost within reasonable parameters. You'll see in the number of briefings we've already had with councillors and the capital works executive about refining program this year and some of the approaches we've taken on like Edward 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 do the job properly and also on the VHF project. Now as part of BR2 business review Business budget review two, 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 that may need to be deferred to next financial year, which is not necessarily a bad thing because we'll probably expend 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. yellow list and the 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 the scale of our capital works program is not just confined to not just confined to this year a forecast for at least the next three years indicate this an ongoing scale at the same level and and we're not resourced to be able to deliver this continuing scale if you look at our carryover budget it's gone from two million up to seven million and up to 19 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 three financial years and that will be considered as part of Council's 24/25 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 the reality and the the open reporting has been very helpful for us to get our heads around what what difficulties lay ahead I think I think we just want to be a position where we're not delivering everything over budget we're delivering the 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 perhaps the less urgent things can wait until we've actually got the budget to do it properly. Frank Wilkie 15:43.948
It's a very hard working team. Joe Jurisevic 15:46.008
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, you know, the next 10 years are going to be challenging in trying to deliver capital work, you know, clearly across all those levels as a result of the number of major projects. Shaun Walsh 16:16.318
Mel, did you have anything to add to that statement? You know, you're in the thick of it. SPEAKER_01 16:20.298
I would definitely agree with the resourcing side of things and I think that allowing a little bit more flexibility with 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 16:41.845
So do the job, do it well. than try to do too much. I think it's doing the job to brief, you know, to scope. So that's, you know, we're not talking about goal planning, we're not talking about that, but doing it to, you know, community and council expectations. Joe Jurisevic 16:55.296
But also clearly articulating the scope of the work the scope of the work and the cost of the project before we commence the project as opposed to at the end, it's a short form. Shaun Walsh 17:04.267
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. Frank Wilkie 17:24.250
Some more realistic cost estimates. Amelia Lorentson 17:26.850
And in terms of resourcing, interesting what you've said. We've actually got to forecast the resourcing because... we don't have the manpower, we can't take up more jobs. And is that possibly one of the learnings? You know, we've had these riddles of gold with grant funding. If they continue, would we would we change the approach we're taking with grant funding? Would we be looking at, you know, less, not jump on everything, and understanding these challenges? Shaun Walsh 18:01.580
Yeah, I think the key issue with grant funding is 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 two hundred thousand staff and time to actually deliver it, and you haven't budgeted for that. So, and budgeted for that. And I think it's about that when we're assessing grant fundings 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 18:30.561
The standpoint like in infrastructure? Shaun Walsh 18:32.861
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 an And then there's also a lot of 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 18:53.880
And in terms of key positions, are they all filled? are they making equity-seeking positions? Shaun Walsh 19:00.811
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 will engage with the Noosa Junction traders. So we've been able to start that project. We have 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 Legs on our, you know, backlog of transport and traffic projects. Joe Jurisevic 19:39.977
One 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? Shaun Walsh 20:11.143
Deferred to Walsh for this one. No, Amelia Lorentson 20:16.243
I'll leave that one with you. Shaun Walsh 20:17.803
The project manager... Amelia Lorentson 20:19.403
It gets asked when I'm at the park. I've only been asked another 15 times. Shaun Walsh 20:24.303
The project manager for the pump track is actually developed pump track is actually developed in 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. Thank you. Amelia Lorentson 20:44.085
Can I have a mover, please? seconders, Councillor Wilkie, anyone wants to speak to the motion in front of us? No. Keep on doing your great job. Just acknowledge the difficult circumstances. Joe Jurisevic 20:59.239
Thank you, thank you very much. I pass on those regards, thank you. Facilitating all the capital projects for Frank Manning. Frank Wilkie 21:05.559
Keep smiling. Amelia Lorentson 21:06.999
She can't help 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. Wonderful. Thank you. There's no confidential session and I declare the meeting closed five minutes before the Melbourne Cup. Related Noosa Council Meetings
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