Adopted Report Governance Administration & Finance Committee … · 2019. 6. 23. · 712th Council Meeting 16 February 2016 3 Governance Administration & Finance Committee Meeting

712

Adopted Report of the

Governance Administration & Finance Committee Meeting

held

Thursday 11 February 2016

at

9am

City of Gold Coast Council Chambers 135 Bundall Road Surfers Paradise

712th Council Meeting 16 February 2016 2 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report

Index

Adopted Report

Governance Administration & Finance Committee Meeting

Thursday, 11 February 2016

Item Direct. File Page Subject

1 OS LG314/411/15/040(P3) 5 Contract No. LG314/411/15/040 - Collection And Recycling Of Scrap Metal

2 OS LG314/411/16/018(P2) 11 Contract No. LG314/411/16/018 - Supply And Delivery Of Various Pesticides And Herbicides

3 OS CM787/790/07/07(P1) 21 Sole And Specialised Supplier List Addition

4 OS LG314/765/15/003(P1) 26 Contract No. LG314/690/16/052 – Preferred Supplier Arrangement For Sewer Maintenance Hole Condition Assessment And Contract No. LG314/765/15/003 – Register Of Pre-Qualified Suppliers For Sewer Maintenance Hole Refurbishment

5 OS LG314/1211/16/055(P1) 38 Contract No. LG314/1211/16/055 - Design And Construction Of Stage 1 Of The Long Term Recycled Water Release Plan

6 OS LG314/1185/16/009(P1) 43 Contract No. LG314/1185/16/009 - Council Chambers Audio Visual Upgrade/Replacement

7 OS PN212765/856(P2) 49 Proposed Sale Of Council Lots - Hutchinson Street, Burleigh Heads

8 OCEO FN334/375/17(P1) 53 December 2015 Monthly Financial Report

9 OCEO LG115/1215/01/2015(P1) 63 Governance Administration And Finance Committee Action List And Forward Planning Schedule

10 OCEO LG113/641/04/04(P5) 64 Value For Money Plan Program 2016

11 OCEO LG449/756/04/01(P1) 112 State Of The Organisation Report (As At 30 June 2015)

12 OS RV36/188/-(P14) 160 2015-16 Quarter Two Report - Rates And Water Debt Management

13 OS FN338/74/-(P52) 172 Report On 12 Month Trial Of Credit Card Payments To Trust Items

General Business

14 CS FN334/375/02(P41) 178 International Women’s Day

Closed Session

13 OCEO 179 CEO Briefing

KEY:

OCEO - Office of the Chief Executive Officer CI - City Infrastructure GCW - Gold Coast Water CS - Community Services OS - Organisational Services EDMP - Economic Development & Major Projects PE - Planning & Environment

712th Council Meeting 16 February 2016 3 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ADOPTED BY COUNCIL 16 FEBRUARY 2016 RESOLUTION G16.0216.014 moved Cr Owen-Jones seconded Cr Tozer That the Report of the Governance, Administration & Finance Committee Recommendations of Thursday, 11 February 2016, numbered GA16.0211.001 to GA16.0211.014, be adopted.

CARRIED UNANIMOUSLY ATTENDANCE Cr W M A Owen-Jones (Chairperson) Cr G M Tozer Cr C M Caldwell Cr T C Gilmore Cr D M Crichlow Cr A J D Bell Cr G J Betts Visitor Cr P A Taylor Mr D R Dickson Chief Executive Officer Mr A J McCabe Chief Operating Officer Mr G Potter Director Organisational Services Mr P Morichovitis Chief Procurement Officer (part) Mr L Jackson Acting Executive Coordinator Revenue Services (part) Mr M Harvey Manager Office of the Chief Executive Officer (part) APOLOGY / LEAVE OF ABSENCE PROCEDURAL MOTION moved Cr Crichlow seconded Cr Tozer That the apology of Cr Gilmore be noted.

CARRIED PRESENTATIONS Nil

712th Council Meeting 16 February 2016 4 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report The information below is extracted from the Procurement Policy and Guidelines. Refer to the Policy and Guidelines for complete details.

QUOTATIONS TO LOCAL BUSINESSES FOR CONTRACTS WORTH LESS THAN $200,000 (EXCLUDING GST)

If the best value pricing submission is not from a Gold Coast business or business with a branch office on the Gold Coast and there is a Gold Coast business or business with a branch office on the Gold Coast directly employing a minimum of 10 FTEs with a pricing submission within:

30 per cent of the best value pricing submission for quotations up to $50,000, 25 per cent of the best value pricing submission for quotations between $50,000 and

$100,000, 20 per cent of the best value pricing submission for quotations between $100,000 and

$200,000,

then the Gold Coast business or business with a branch office on the Gold Coast directly employing a minimum of 10 FTEs submission will be deemed to be more advantageous and this supplier chosen.

TENDERS FOR CONTRACTS WORTH MORE THAN $200,000 (EXCLUDING GST)

Local Content Scoring for Tenders Weighting % Score Description

15 100% 15 Developing or established Gold Coast business

15 80% 12 Branch office on the Gold Coast directly employing a minimum of 10 FTEs

15 60% 9 Branch office on the Gold Coast, established for a minimum of six months, directly employing less than 10 FTEs

15 27% 4 Adjacent local government (Logan, Scenic Rim, Redland or Tweed Shire) business

15 13% 2 Queensland business 15 7% 1 Interstate business 15 0% 0 Overseas business

Gold Coast Business Excellence Awards Scoring for Tenders Weighting % Score Description

2 100% 2 A winner of the Gold Coast Business Awards within the past 4 calendar years

2 50% 1 A finalist of the Gold Coast Business Awards within the past 4 calendar years

2 0% 0 All other businesses Where a tenderer has qualified for the Gold Coast Business Excellence Awards’ Hall of Fame and as a result is not eligible to enter the annual awards, this tenderer will score full points (i.e. 2 out of 2).

TENDERS LEADING TO CONTRACTS WITH AN ANNUAL VALUE BETWEEN $200,000 AND $1,000,000 (EXCLUDING GST)

Council will provide a 15 per cent pricing advantage to Gold Coast businesses or businesses with a branch office on the Gold Coast directly employing a minimum of 10 FTEs.

712th Council Meeting 16 February 2016 5 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 1 ORGANISATIONAL SERVICES CONTRACT NO. LG314/411/15/040 – COLLECTION AND RECYCLING OF SCRAP METAL LG314/411/15/040(P1) 1 BASIS FOR CONFIDENTIALITY

Not applicable.

2 EXECUTIVE SUMMARY

Not applicable.

3 PURPOSE OF REPORT

This report seeks approval to establish a preferred supplier arrangement LG314/411/15/040 for the collection and recycling of scrap metal for a period of three years with two by one year extension options.

4 PREVIOUS RESOLUTIONS

Not applicable.

5 DISCUSSION The Council of the City of Gold Coast (Council) requires the ongoing collection and recycling of scrap metal for beneficial reuse from Council’s waste and recycling centres, depots and treatment plants. Council has an existing contract in place for the collection and recycling of scrap metal with OneSteel Recycling Pty Ltd which is due to expire on 31 March 2016. Council has again determined that the most advantageous and operationally suitable method of delivering this service is to establish a preferred supplier arrangement. Tenders were invited by advertising in the Gold Coast Bulletin, LG Tender Box and the City of Gold Coast websites on 3 October 2015. The tender period closed on 28 October 2015. The tender included both ferrous scrap metal and non-ferrous scrap metal. Due to a change in the tender specifications, all tenderers who submitted a tender were in accordance with Section 228(7) of the Local Government Regulations 2012 invited on 3 December 2015 to submit a revised offer in order to take into consideration changes in evaluation criteria, the validity period and pricing model. The Section 228(7) revised tender submissions were received on 10 December 2015. The following tenders were received.

SELECT

1 Qld Metal Recyclers Pty Ltd (t/a Qld Metal Recyclers Pty Ltd)

2 ASM Recycling Pty Ltd atf The Adrian Fuller Trust (t/a ASM Recycling Pty Ltd)

3 Oxley Truck Parts Pty Ltd (t/a Raw Metal Corp)

4 Recyclers Australia Pty Ltd

5 Sims Group Australia Holdings Limited (t/a SimsMetal Management)

712th Council Meeting 16 February 2016 6 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 1 (Continued) CONTRACT NO. LG314/411/15/040 – COLLECTION AND RECYCLING OF SCRAP METAL LG314/411/15/040(P1) The tender process was considered to be sufficiently extensive to have attracted competitive interest from the market. The tenders were evaluated using a three gate evaluation process incorporating the evaluation criteria that formed part of the Invitation to Offer documents. Evaluations were undertaken by three officers of Council, and the result was reviewed and verified independently by an officer from within the Chief Procurement Office. The names of the evaluation team and the scoring matrix with assigned weightings are on file for reference. The first gate of the evaluation process was removed via the Section 228(7) process and all tenderers that submitted an offer progressed to Gate 2. The second gate of the evaluation process considered the evaluation of the following scoring criteria and determined those suppliers deemed capable of meeting Council’s requirements. Demonstrated reporting ability. Methodology. Availability of plant and equipment. Relevant experience. Documented WHS management system. Documented QA system. Documented environmental management system. Local Business and Industry. Gold Coast Business Excellence Awards. The resultant aggregated scores were as follows.

SELECT

Evaluation Score

(without Local

Content)

Local Business

and Industry

Gold Coast

Business Awards

Evaluation Score

(with Local Content)

(out of 83) (out of 15) (out of 2) (out of 100%)


59% 9% 0% 68%


50% 15% 0% 65%

3 ASM Recycling Pty Ltd atf The Adrian Fuller Trust (t/a ASM Recycling Pty Ltd)

33% 15% 0% 48%

4 Recyclers Australia Pty Ltd 30% 15% 0% 45%

5 Oxley Truck Parts Pty Ltd (t/a Raw Metal Corp)

36% 2% 0% 38%

The first two tenderers scored sufficiently in the evaluation of their capability and were determined as suppliers capable of meeting Council’s requirements. As a result, these tenderers were moved through to the third evaluation gate.

712th Council Meeting 16 February 2016 7 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 1 (Continued) CONTRACT NO. LG314/411/15/040 – COLLECTION AND RECYCLING OF SCRAP METAL LG314/411/15/040(P1) The third gate of the evaluation process considered the value for money of those tenderers who are considered capable, based on the greatest tendered revenue forecast amount for the categories. The total revenue forecast amounts are listed below.

Tenderers

Local Business

and Industry

Gold Coast

Business Awards

Total revenue forecast (excl. GST) for three

years*


15% 0% $ 2,409,608


9% 0% $ 1,461,261

Council’s estimate was: $ 3,454,230

*Rise and fall applied to the fixed cost component. The tenderer who submitted the highest revenue forecast amount is considered capable of undertaking the works and reflects the offer most advantageous to Council. Revenue is less than estimated due to recent global reductions of steel prices. Qld Metal Recyclers Pty Ltd (t/a Qld Metal Recyclers Pty Ltd) have satisfied the evaluation team of their clear understanding of the scope of work, that this is not at variance with the requirements of the Invitation to Offer document and has also satisfied the evaluation team as to their ability to complete this contract in addition to their current contractual commitments. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN

The project is aligned with the following theme, outcome and signature actions of the City Vision and Gold Coast 2020.

Theme 1 – The best place to live and visit Outcome: What we want to see by 2020

1.3 We have sustainable solid and liquid waste disposal. We innovate to maximise recycling and reduce waste.

Signature action: Key programs of work Establish waste diversion programs for priority green waste, organic material, food waste, plastics, timber and wood waste, metals and construction waste.

Supporting the Delivery of Gold Coast 2020 B We manage the city responsibly Signature action: Key programs of work

Deliver a wide range of high quality services to the gold Coast Community (as identified in the annual Operational Plan), including services from the two commercialised business units: o Manage waste to avoid or minimise adverse impact on the environment while

improving the quality of life for residents and visitors.

712th Council Meeting 16 February 2016 8 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 1 (Continued) CONTRACT NO. LG314/411/15/040 – COLLECTION AND RECYCLING OF SCRAP METAL LG314/411/15/040(P1) Appendix 2 Commercialised Business Unit – Gold Coast Waste Management Significant business activity:

Gold Coast Waste Management is responsible for the provision of waste management services to customers throughout the city. This covers the following core service: o Ensuring compliance with all appropriate standards and procedures for the

storage, transport, treatment and disposal of contract solid waste. 7 COMMONWEALTH GAMES IMPACT Not applicable. 8 FUNDING AND RESOURCING REQUIREMENTS Budget/Funding Considerations The estimated total revenue over the contract period is forecast to be $2,409,608 to be allocated to Responsibility Centre CS4700 as shown below. Budget/ Cost Centre

Description Revenue Forecast Allocation for three

years (excl. GST)

CS4700O004/1000695

Waste Management Disposal – Transfer Stations Operations

$ 2,409,608

Total forecast revenue: $ 2,409,608 Costs for Capital Works and Service Proposals Not applicable. In accordance with the budget review guidelines the following circumstances require referral to the Special Budget Committee Not applicable. People and Culture No extra staff will be required for this project. 9 RISK MANAGEMENT The project risks have been identified and relevant mitigation measures applied. The risk assessment is on file for reference. 10 STATUTORY MATTERS The tender process has been carried out in accordance with the Local Government Regulation 2012 which requires adherence to sound contracting principles. These principles are defined in Section 104(3) of the Local Government Act 2009 and are as follows.

712th Council Meeting 16 February 2016 9 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 1 (Continued) CONTRACT NO. LG314/411/15/040 – COLLECTION AND RECYCLING OF SCRAP METAL LG314/411/15/040(P1) Value for money. Open and effective competition. The development of competitive local business and industry. Environmental protection. Ethical behaviour and fair dealing. These principles form part of the Invitation to Offer process and are reinforced within the evaluation criteria as appropriate. Section 233 of the Local Government Regulation 2012 provides for the creation of a preferred supplier arrangement for the supply of particular goods or services. 11 COUNCIL POLICIES The tender process has been carried out in accordance with the requirements of Council’s Procurement Policy and Standards. 12 DELEGATIONS Not applicable. 13 COORDINATION & CONSULTATION The following internal and external stakeholders have been involved / participated in the proposal to date. Name and/or Title of the Stakeholder Consulted

Directorate or Organisation

Is the Stakeholder Satisfied With Content of Report and Recommendations

Acting Executive Coordinator Source to Contract J Maloney

Organisational Services Yes

Source to Contract Coordinator L Gaspar


Director Community Services

Community Services Yes

Manager Waste & Resources Management


Senior Coordinator Waste Operations & Infrastructure S Cantrill


Senior Contracts Officer Waste Operations B Van Den Heuvel


Right to Information (RTI) and Information Privacy (IP) Legislation 2009 The RTI/IP considerations are as follows: Not applicable.

712th Council Meeting 16 February 2016 10 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 1 (Continued) CONTRACT NO. LG314/411/15/040 – COLLECTION AND RECYCLING OF SCRAP METAL LG314/411/15/040(P1) 14 STAKEHOLDER IMPACTS

External / community stakeholder Impacts

No adverse impacts are expected to be experienced by external / community stakeholders during the undertaking of this work. Benefits include beneficial reuse of scrap metal, which reduces the impact on the environment as less waste is disposed in the landfill.

Internal (Organisational) Stakeholder Impacts

Not applicable.

15 TIMING

The anticipated contract start date is 1 April 2016. 16 CONCLUSION The recommended tenderer is experienced in the type of work to be undertaken. The evaluation of the tenders received indicates that the tender submitted by Qld Metal Recyclers Pty Ltd (t/a Qld Metal Recyclers Pty Ltd) is the one most advantageous to Council and should be recommended for acceptance for a period of three years with two by one year extension options. 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Council accepts the tender submitted by Qld Metal Recyclers Pty Ltd (t/a Qld

Metal Recyclers Pty Ltd) for the anticipated revenue amount of $2,409,608 (excl GST) in respect of Contract No. LG314/411/15/040 for Collection and Recycling of Scrap Metal for three years with two by one year extension options.

2 That it be noted that revenue collected under this contract will be allocated to Budget Centre CS4700O004.

Author: Authorised by:

Debbie Gist Glen Potter Procurement Contracts Officer Director Organisational Services 21 January 2016

TRACKS REF #53531049 COMMITTEE RECOMMENDATION GA16.0211.001 moved Cr Caldwell seconded Cr Bell 1 That Council accepts the tender submitted by Qld Metal Recyclers Pty Ltd (t/a

Qld Metal Recyclers Pty Ltd) for the anticipated revenue amount of $2,409,608 (excl GST) in respect of Contract No. LG314/411/15/040 for Collection and Recycling of Scrap Metal for three years with two by one year extension options.

2 That it be noted that revenue collected under this contract will be allocated to Budget Centre CS4700O004.

CARRIED

712th Council Meeting 16 February 2016 11 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 2 ORGANISATIONAL SERVICES CONTRACT NO. LG314/411/16/018 – SUPPLY AND DELIVERY OF VARIOUS PESTICIDES AND HERBICIDES LG314/411/16/018(P2) 1 BASIS FOR CONFIDENTIALITY Not applicable. 2 EXECUTIVE SUMMARY Not applicable. 3 PURPOSE OF REPORT This report seeks approval to establish preferred supplier arrangement LG314/411/16/018 for the supply and delivery of various pesticides and herbicides for a period of three years with two by one year extension options. 4 PREVIOUS RESOLUTIONS Not applicable. 5 DISCUSSION The Council of the City of Gold Coast (Council) requires the ongoing supply and delivery of pesticides to control pests that are of public health significance, are vectors of disease or that impact on human lifestyle. The herbicides are used to control pest plants that threaten the City's natural environment. Council has existing contracts in place for the supply and delivery of various pesticides and herbicides with Globe Australia Pty Ltd, Garrards Pty Ltd and Pacific Biologics Pty Limited which expire on 31 March 2016. Council has again determined that the most advantageous and operationally suitable method of delivering the service is to establish a preferred supplier arrangement, funded by a budget extending beyond one financial year. Tenders were invited by advertising in the Gold Coast Bulletin, LG Tender Box and the City of Gold Coast websites on 14 November 2015. The tender period closed on 9 December 2015. The tender comprised two separable portions as follows. Separable Portion 1: Pesticides. Separable Portion 2: Herbicides.

The following tenders were received.

712th Council Meeting 16 February 2016 12 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 2 (Continued) CONTRACT NO. LG314/411/16/018 – SUPPLY AND DELIVERY OF VARIOUS PESTICIDES AND HERBICIDES LG314/411/16/018(P2)

Tenderers Separable Portion

1 Garrards Pty Ltd SP1 and SP2

2 Globe Australia Pty Ltd SP1 and SP2

3 Pacific Biologics Pty Limited SP1

4 Amgrow Pty Ltd SP2

As the work involved is highly specialised, a limited response was anticipated from the market. The tenders were evaluated using a three gate evaluation process incorporating the evaluation criteria that formed part of the Invitation to Offer documents. Evaluations were undertaken by three officers of Council, and the result was reviewed and verified independently by an officer from within the Chief Procurement Office. The names of the evaluation team and the scoring matrix with assigned weightings are on file for reference. The first gate of the evaluation process considered the evaluation of the following specific mandatory criteria.

Australian Pesticides and Veterinary Medicines Authority registered products. Documented quality assurance system. Documented Work Health and Safety management system. The first gate of the evaluation process found all offers to be conforming to the mandatory requirements of Council’s Invitation to Offer documents. The second gate of the evaluation process considered the evaluation of the following scoring criteria and determined those suppliers deemed capable of meeting Council’s requirements.

Experience. After sales service/training. Local Business and Industry. Gold Coast Business Excellence Awards. The resultant aggregated scores were as follows.

Separable Portion 1: Pesticides

Tenderers

Evaluation Score

(without Local

Content)

Local Business

and Industry

Gold Coast

Business Awards

Evaluation Score



1 Garrards Pty Ltd 55 12 0 67%

2 Globe Australia Pty Ltd 55 12 0 67%

3 Pacific Biologics Pty Limited 55 2 0 57%

712th Council Meeting 16 February 2016 13 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 2 (Continued) CONTRACT NO. LG314/411/16/018 – SUPPLY AND DELIVERY OF VARIOUS PESTICIDES AND HERBICIDES LG314/411/16/018(P2) Separable Portion 2: Herbicides

Tenderers

Evaluation Score

(without Local

Content)

Local Business

and Industry

Gold Coast

Business Awards

Evaluation Score



1 Garrards Pty Ltd 55 12 0 67%

2 Globe Australia Pty Ltd 55 12 0 67%

3 Amgrow Pty Ltd 44 12 0 56%

All tenderers for both separable portions scored sufficiently in the evaluation of their capability and were determined as suppliers capable of meeting Council’s requirements. As a result, these tenderers were moved through to the third evaluation gate. The third gate of the evaluation process considered the value for money of those tenderers who are considered capable, based on the total tendered amount. This tender comprised numerous individual herbicide and pesticide line items on a schedule of rates basis. In order to maximise value for money, individual line items were split across suppliers, based on lowest tendered prices (except for where the pricing advantage was applied to the local suppliers under Council’s ‘buy-local’ policy. For items that are required in large volumes, a primary and a secondary supplier have been recommended for award. As an outcome of the overall evaluation process on an item by item basis for Separable Portion 1, it is recommended that Council awards the items as follows.

Tenderer Separable Portion 1 Pesticides individual items

recommended for award*

Garrards Pty Ltd

Primary Supplier for pay items 1.02, 1.04, 1.07, 1.09, 1.15, 1.17, 1.19, 1.21, 1.23, 1.25, 1.27, 1.29, 1.31, 1.33, 1.37, 1.39, 1.41, 1.45, 1.49, 1.51, 1.53, 1.55, 1.57, 1.59, 1.63, 1.69

Secondary Supplier for pay item 1.12

Globe Australia Pty Ltd Primary Supplier for pay items 1.12, 1.35, 1.62, 1.65, 1.68


Pacific Biologics Pty Limited Primary Supplier for pay items 1.05, 1.13, 1.47

Secondary Supplier for pay item 1.03 (1.03 is the specified product, 1.04 is the alternate equivalent product)

*An odd numbered pay item represents the specified product. An even numbered pay item represents an alternative, equivalent product. Under the tender conditions tenderers were able to offer alternative products.

For items where Pacific Biologics Pty Limited were recommended Primary Supply, Pacific Biologics Pty Limited were the only tenderer for these items. As a result, local pricing advantage is not applicable.

712th Council Meeting 16 February 2016 14 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 2 (Continued) CONTRACT NO. LG314/411/16/018 – SUPPLY AND DELIVERY OF VARIOUS PESTICIDES AND HERBICIDES LG314/411/16/018(P2) The costs of the recommended tendered items to be accepted for this portion are listed below.

Separable Portion 1: Pesticides

Tenderers

Local Business

and Industry

Gold Coast

Business Awards

Total Amount (excl. GST) for three years*

1 Garrards Pty Ltd 12% 0% $ 1,388,694

2 Globe Australia Pty Ltd 12% 0% $ 477,553

3 Pacific Biologics Pty Limited 2% 0% $ 122,928

Total combined cost for proposed new contract $ 1,989,177

Council’s estimate was: $ 2,315,915

*With rise and fall As an outcome of the overall evaluation process on an item by item basis for Separable Portion 2, it is recommended that Council awards the items as follows.

Tenderer Separable Portion 2 Herbicides individual items recommended for award

Amgrow Pty Ltd Pay items, 2.25, 2.27, 2.29

Garrards Pty Ltd Pay items, 2.01, 2.07, 2.09, 2.35, 2.38

Globe Australia Pty Ltd Pay items, 2.02, 2.04, 2.05, 2.10, 2.12, 2.14, 2.16, 2.17, 2.19, 2.21, 2.23, 2.25, 2.31 2.33, 2.40

The costs of the recommended tendered items to be accepted for this portion are listed below. Separable Portion 2: Herbicides

Tenderers

Local Business

and Industry

Gold Coast

Business Awards

Total Amount (excl. GST) for three years*

1 Garrards Pty Ltd 12% 0% $ 11,019

2 Amgrow Pty Ltd 12% 0% $ 14,828

3 Globe Australia Pty Ltd 12% 0% $ 56,320

Total combined cost for proposed new contract $ 82,167

Council’s estimate was: $ 88,900

*With rise and fall

712th Council Meeting 16 February 2016 15 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 2 (Continued) CONTRACT NO. LG314/411/16/018 – SUPPLY AND DELIVERY OF VARIOUS PESTICIDES AND HERBICIDES LG314/411/16/018(P2) Garrards Pty Ltd, Globe Australia Pty Ltd and Pacific Biologics Pty Limited for Separable Portion 1 and Garrards Pty Ltd, Globe Australia Pty Ltd and Amgrow Pty Ltd for Separable Portion 2 have satisfied the evaluation team of their clear understanding of the scope of work, that this is not at variance with the requirements of the Invitation to Offer document and have also satisfied the evaluation team as to their ability to complete this contract in addition to their current contractual commitments. The Contract requires the appointment of a primary and secondary supplier for the products listed against pay items 1.02, 1.03 (1.04 is the alternate equivalent product) and 1.12 to enable the city to progress its work efficiently and in a timely manner, particularly when the primary contractor cannot supply one-off large volume orders of these products. This contract is a preferred supplier arrangement. When required, product will be ordered from the successful supplier for that particular product. When ordering products listed against pay items 1.02, 1.03 (1.04 is the alternate equivalent product) and 1.12 the primary supplier will be requested to supply the product. In the instances where the one-off order is of a large volume and the primary supplier cannot supply the entire volume, then the secondary supplier will be requested to supply the remainder volume of the product. This provides the most advantageous outcome to Council in utilising this arrangement. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN The project is aligned with the following themes, outcomes and signature actions of the City Vision and Gold Coast 2020. Theme 1 – The best place to live and visit

Outcomes: What we want to see by 2020 1.2 We live in balance with nature We manage quality rural and urban living while looking after the future of the city’s rainforest, bushland, waterways and open space.

Signature actions: Key programs of work Implement the Pest Management Plan to protect local ecosystems and increase native vegetation cover.

Supporting the Delivery of Gold Coast 2020

B We manage the city responsibly

Signature actions: Key programs of work Manage the short and long-term financial sustainability of the city through prudent financial management and ensuring value for money.

7 COMMONWEALTH GAMES IMPACT Not applicable.

712th Council Meeting 16 February 2016 16 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 2 (Continued) CONTRACT NO. LG314/411/16/018 – SUPPLY AND DELIVERY OF VARIOUS PESTICIDES AND HERBICIDES LG314/411/16/018(P2) 8 FUNDING AND RESOURCING REQUIREMENTS Budget/Funding Considerations The estimated contract cost for this arrangement per financial year is summarised below.

Estimated Cost for Financial Years Duration Estimate

(excl. GST)

2015-16 3 months $ 165,888

2016-17 12 months $ 670,187*

2017-18 12 months $ 696,995*

2018-19 9 months $ 538,273*

Total Cost: $ 2,071,343*

* Rise and fall applies after year 1 The funding for the work will come from individual projects within Responsibility Centre 4820 and Budget Centre 4820O001. Sufficient funds remain in the Responsibility Centre and Budget Centre mentioned above for the 2015-16 financial year to provide these services for this financial year. Similar budgets will be submitted by the Asset Custodian to Council for approval, for each of the subsequent three financial years. This arrangement is a Schedule of Rates contract for three years. Payments will be made to the Supplier based on the rates offered, multiplied by the actual quantum of product supplied. For the purposes of obtaining competitive offers and evaluating these equitably, estimates were given of the volumes of product likely to be ordered over the period of the contract. Costs for Capital Works and Service Proposals Not applicable. In accordance with the budget review guidelines the following circumstances require referral to the Special Budget Committee Not applicable. People and Culture No extra staff will be required for this project. 9 RISK MANAGEMENT The project risks have been identified and relevant mitigation measures applied. The risk assessment is on file for reference.

712th Council Meeting 16 February 2016 17 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 2 (Continued) CONTRACT NO. LG314/411/16/018 – SUPPLY AND DELIVERY OF VARIOUS PESTICIDES AND HERBICIDES LG314/411/16/018(P2) 10 STATUTORY MATTERS The tender process has been carried out in accordance with the Local Government Regulation 2012 which requires adherence to sound contracting principles. These principles are defined in Section 104(3) of the Local Government Act 2009 and are as follows. Value for money. Open and effective competition. The development of competitive local business and industry. Environmental protection. Ethical behaviour and fair dealing. These principles form part of the Invitation to Offer process and are reinforced within the evaluation criteria as appropriate. Section 233 of the Local Government Regulation 2012 provides for the creation of a preferred supplier arrangement for the supply of particular goods or services. 11 COUNCIL POLICIES The tender process has been carried out in accordance with the requirements of Council’s Procurement Policy and Standards. 12 DELEGATIONS

Not applicable.

13 COORDINATION & CONSULTATION The following internal and external stakeholders have been involved / participated in the proposal to date.

Name and/or Title of the Stakeholder Consulted



Acting Executive Coordinator Source to Contract J Maloney


Source to Contract Coordinator L Gaspar


Director Community Services


Manager Waste & Resources Management


Coordinator Pest Management


Operations Officer South M Farrelly


Right to Information (RTI) and Information Privacy (IP) Legislation 2009

Not applicable.

712th Council Meeting 16 February 2016 18 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 2 (Continued) CONTRACT NO. LG314/411/16/018 – SUPPLY AND DELIVERY OF VARIOUS PESTICIDES AND HERBICIDES LG314/411/16/018(P2) 14 STAKEHOLDER IMPACTS External / community stakeholder Impacts No adverse impacts are expected to be experienced by external / community stakeholders during the undertaking of this work. Benefits include the provision of highly efficient control programs operating within budget parameters and meeting community expectations. Internal (Organisational) Stakeholder Impacts Not applicable. 15 TIMING The anticipated contract start date is 1 April 2016. 16 CONCLUSION The recommended tenderers are experienced in the type of work to be undertaken. The evaluation of the tenders received indicates that the tenders submitted by Garrards Pty Ltd, Globe Australia Pty Ltd, and Pacific Biologics Pty Ltd for Separable Portion 1 and Globe Australia Pty Ltd, Garrards Pty Ltd, and Amgrow Pty Ltd for Separable Portion 2 are the ones most advantageous to Council and should be recommended for acceptance for the applicable items within the separable portions for a period of three years with two by one year extension options. 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Council accepts the Schedule of Rates (excluding GST) tenders submitted, with

rise and fall, to establish preferred supplier arrangement LG314/411/16/018 for the supply and delivery of various pesticides and herbicides for a period of three years with two by one year extension options as follows:

Separable Portion 1: Pesticides Tenderer

Primary Supplier for pay items, 1.02, 1.04, 1.07, 1.09, 1.15, 1.17, 1.19, 1.21, 1.23, 1.25, 1.27, 1.29, 1.31, 1.33, 1.37, 1.39, 1.41, 1.45, 1.49, 1.51, 1.53, 1.55, 1.57, 1.59, 1.63, 1.69


Garrards Pty Ltd

Primary Supplier for pay items, 1.12, 1.35, 1.62, 1.65, 1.68

Secondary supplier pay item 1.02 Globe Australia Pty Ltd

Primary Supplier pay items, 1.05, 1.13, 1.47

Secondary supplier pay item 1.03 Pacific Biologics Pty Limited

712th Council Meeting 16 February 2016 19 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 2 (Continued) CONTRACT NO. LG314/411/16/018 – SUPPLY AND DELIVERY OF VARIOUS PESTICIDES AND HERBICIDES LG314/411/16/018(P2)

Separable Portion 2: Herbicides Tenderer

Pay items, 2.25, 2.27, 2.29 Amgrow Pty ltd

Pay items, 2.01, 2.07, 2.09, 2.35, 2.38 Garrards Pty Ltd

Pay items, 2.02, 2.04, 2.05, 2.10, 2.12, 2.14, 2.16, 2.17, 2.19, 2.21, 2.23, 2.25, 2.31 2.33, 2.40

Globe Australia Pty Ltd

2 That it be noted that the contract will require funding over four financial years. A

budget has been approved for the 2015-16 financial year and funds are available in Responsibility Centre 4820 and Budget Centre 4820O001. Similar budgets will be submitted by the Asset Custodian for approval for the three subsequent financial years. The total expenditure over the contract period is anticipated to be $ 2,071,343.


Judy Davidson Glen Potter Procurement Contracts Officer Director Organisational Services 23 December 2015

TRACKS REF 52383093

712th Council Meeting 16 February 2016 20 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 2 (Continued) CONTRACT NO. LG314/411/16/018 – SUPPLY AND DELIVERY OF VARIOUS PESTICIDES AND HERBICIDES LG314/411/16/018(P2) COMMITTEE RECOMMENDATION GA16.0211.002 moved Cr Crichlow seconded Cr Tozer 1 That Council accepts the Schedule of Rates (excluding GST) tenders submitted,

with rise and fall, to establish preferred supplier arrangement LG314/411/16/018 for the supply and delivery of various pesticides and herbicides for a period of three years with two by one year extension options as follows:

Separable Portion 1: Pesticides Tenderer

Primary Supplier for pay items, 1.02, 1.04, 1.07, 1.09, 1.15, 1.17, 1.19, 1.21, 1.23, 1.25, 1.27, 1.29, 1.31, 1.33, 1.37, 1.39, 1.41, 1.45, 1.49, 1.51, 1.53, 1.55, 1.57, 1.59, 1.63, 1.69


Garrards Pty Ltd

Primary Supplier for pay items, 1.12, 1.35, 1.62, 1.65, 1.68

Secondary supplier pay item 1.02 Globe Australia Pty Ltd

Primary Supplier pay items, 1.05, 1.13, 1.47

Secondary supplier pay item 1.03 Pacific Biologics Pty Limited

Separable Portion 2: Herbicides Tenderer

Pay items, 2.25, 2.27, 2.29 Amgrow Pty ltd

Pay items, 2.01, 2.07, 2.09, 2.35, 2.38 Garrards Pty Ltd

Pay items, 2.02, 2.04, 2.05, 2.10, 2.12, 2.14, 2.16, 2.17, 2.19, 2.21, 2.23, 2.25, 2.31 2.33, 2.40

Globe Australia Pty Ltd

2 That it be noted that the contract will require funding over four financial years. A budget has been approved for the 2015-16 financial year and funds are available in Responsibility Centre 4820 and Budget Centre 4820O001. Similar budgets will be submitted by the Asset Custodian for approval for the three subsequent financial years. The total expenditure over the contract period is anticipated to be $ 2,071,343.

CARRIED

712th Council Meeting 16 February 2016 21 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 3 ORGANISATIONAL SERVICES 2015-16 SOLE AND SPECIALISED SUPPLIER LIST ADDITION CM787/790/07/07(P1) Refer 1 page attachment A

1 BASIS FOR CONFIDENTIALITY

Not applicable.

2 EXECUTIVE SUMMARY

Not applicable.

3 PURPOSE OF REPORT This report seeks approval in accordance with section 235(a) and (b) of the Local Government Regulation 2012, that due to the specialised or confidential nature of the services being sought, that it would be impractical or disadvantageous for Council to invite quotations or tenders to include this addition to the 2015-16 Sole and Specialised Suppliers List. 4 PREVIOUS RESOLUTIONS Ex. Council Minute Number G15.0626.018: 1 That Council accepts that the nature of the services being sought in Attachment A are

of a sole, specialised or confidential nature and it would be impractical or disadvantageous for Council to first invite quotes or tenders.

2 That the Sole and Specialised Suppliers List in Attachment A be approved effective from 1 July 2015 to 30 June 2016.”

5 DISCUSSION Sections 235(a) and (b) of the Local Government Regulation 2012 allows Council to enter into a medium-sized or large-sized contractual arrangement without first inviting written quotes or tenders if Council resolves it is satisfied that there is only one supplier who is reasonably available (i.e. sole supplier), or that because of the specialised or confidential nature of the services that are being sought it would be impractical or disadvantageous to invite quotes or tenders (i.e. specialised supplier). The existing 2015-16 Sole and Specialised Supplier list enables Council an efficient and effective way, within the 2015-16 financial year, to procure identified goods and/or services that have a limited supply market or where Council is required to replace parts for an existing asset or to enable continuity of services without having to invite quotes or tenders. This reduces the administrative cost to Council, as well as potential costs to suppliers who would be tendering or quoting needlessly. Suppliers on the list are still required to demonstrate value for money and agree to appropriate contractual terms with Council prior to the supply of goods and services Since adoption of the 2015-16 Sole and Specialised Supplier list an additional sole or specialist supplier or service required for the a business area has been identified and is listed in Attachment A. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN The project is aligned with the following theme, outcome and signature action of the City Vision and Gold Coast 2020.

712th Council Meeting 16 February 2016 22 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 3 (Continued) 2015-16 SOLE AND SPECIALISED SUPPLIER LIST ADDITION CM787/790/07/07(P1) Supporting the Delivery of Gold Coast 2020 A We plan for the future of the city Signature actions: Key programs of work

Develop and implement long-term plans working with key partners, including Gold Coast 2020 (Corporate Plan), the City Plan 2015 and corporate strategies.

Supporting the Delivery of Gold Coast 2020 B We manage the city responsibly Outcome: Our stewardship of the city provides value for money for ratepayers 7 COMMONWEALTH GAMES IMPACT This project has the following direct connection to the 2018 Commonwealth Games (GC2018): The supplier noted in Attachment A of this item has a direct connection to the

Commonwealth Games. 8 FUNDING AND RESOURCING REQUIREMENTS Budget/Funding Considerations Most of the goods and/or services to be ordered from sole and/or specialised suppliers cannot be defined with any certainty ahead of the actual need and the funding for the specialised services will come from approved capital and/or operational budgets across Council Directorates. In accordance with the budget review guidelines the following circumstances require referral to the Special Budget Committee Not applicable. People and Culture The following extra staff will be required for this contract. No extra staff will be required for this project. 9 RISK MANAGEMENT Not applicable 10 STATUTORY MATTERS The review of the additions to the specialised and sole suppliers has been carried out in accordance with section 235 of the Local Government Regulation 2012 which allows Council to enter into a medium or large sized contractual arrangement without first inviting written quotes or tenders if:

712th Council Meeting 16 February 2016 23 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 3 (Continued) 2015-16 SOLE AND SPECIALISED SUPPLIER LIST ADDITION CM787/790/07/07(P1) (a) the local government resolves it is satisfied that there is only one supplier who is

reasonably available; or

(b) the local government resolves that because of the specialised or confidential nature of the services that are being sought it would be impractical or disadvantageous to invite quotes or tenders.

11 COUNCIL POLICIES The procurement process has been carried out in accordance with the requirements of Council’s Procurement Policy and Standards. 12 DELEGATIONS

Not applicable. 13 COORDINATION & CONSULTATION The following internal and external stakeholders have been involved / participated in the proposal to date.




Chief Procurement Officer Organisational Services Yes A/Executive Coordinator Source to Contract


Coordinator Commonwealth Games Procurement


Executive Coordinator Commonwealth Games

Economic Development and Major Projects

Consulted

Executive Coordinator Strategic Operations

City Infrastructure Yes

Right to Information (RTI) and Information Privacy (IP) Legislation 2009 Not applicable. 14 STAKEHOLDER IMPACTS


The following perceived external / community stakeholder impacts have been considered and have been addressed.

Reduction in tendering/quoting costs to potential suppliers.

Internal (Organisational) Stakeholder Impacts The following perceived internal (organisational) stakeholder impacts have been considered, and have been addressed. Opportunity for knowledge transfer to Council staff creating a significant asset to

Council. Reduction in administrative costs to Council.

712th Council Meeting 16 February 2016 24 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 3 (Continued) 2015-16 SOLE AND SPECIALISED SUPPLIER LIST ADDITION CM787/790/07/07(P1) 15 TIMING The use of additions to the 2015-16 Sole and Specialised Supplier List will be effective when resolved by Council. 16 CONCLUSION It is recommended that Council approves the use of section 235(a) and (b) of the Local Government Regulation 2012, to add or amend the approved 2015-16 Sole and Specialised Suppliers List with the supplier listed in Attachment A. The Sole and Specialised Supplier List enables Council an efficient and effective way to procure identified goods and/or services that have a limited supply market or where Council is required to replace parts for an existing asset or to enable continuity of services without having to invite quotes or tenders. This reduces the administrative cost to Council, as well as potential costs to suppliers who would be tendering or quoting needlessly. 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Council accepts that the nature of the services being sought in Attachment A are

of a specialised nature and it would be impractical or disadvantageous to Council to first invite quotes or tenders.

2 That the approved 2015-16 Sole and Specialised Suppliers List be amended to add the supplier listed in Attachment A


Jodie Hely Glen Potter Coordinator Commonwealth Games Procurement

Director Organisational Services

18 January 2016

TRACKS REF: 53492749 COMMITTEE RECOMMENDATION GA16.0211.003 moved Cr Crichlow seconded Cr Tozer 1 That Council accepts that the nature of the services being sought in

Attachment A are of a specialised nature and it would be impractical or disadvantageous to Council to first invite quotes or tenders.

2 That the approved 2015-16 Sole and Specialised Suppliers List be amended to add the supplier listed in Attachment A

CARRIED

712th Council Meeting 16 February 2016 25 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 3 (Continued) 2015-16 SOLE AND SPECIALISED SUPPLIER LIST ADDITION CM787/790/07/07(P1)

Attachment A

Specialised Suppliers

SOLE AND SPECIALISED SUPPLIER LIST ADDITION SUPPLIER BACKGROUND SOLE/SPECIALISED SUPPLIER STATUS FOR THE

PURPOSE OF (ONLY): Foamhand Limited (Auckland and London)

Extensive experience in event planning and delivery with an emphasis on transport management with key strategic roles for the 2012 London Olympic and Paralympic Games, 2014 Glasgow Commonwealth Games, and more recently operational readiness for the 2015 Rugby World Cup. Global supplier with specialised management experience in the delivery of transport readiness for major events who will work with Council officers to impart specialist advice and assistance for the transport functional area readiness assessment for the Commonwealth Games 2018™ utilising learnings from previous global events.

To develop and implement a testing and readiness program for GC2018, focussing on the Transport Control Centre, Venue Precinct Operations and the interface between the Transport Functional Area and other relevant areas (e.g. City Operations and Security).

712th Council Meeting 16 February 2016 26 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 4 ORGANISATIONAL SERVICES CONTRACT NO. LG314/690/16/052 – PREFERRED SUPPLIER ARRANGEMENT FOR SEWER MAINTENANCE HOLE CONDITION ASSESSMENT AND CONTRACT NO. LG314/765/15/003 – REGISTER OF PRE-QUALIFIED SUPPLIERS FOR SEWER MAINTENANCE HOLE REFURBISHMENT LG314/690/16/052, LG314/765/15/003 1 BASIS FOR CONFIDENTIALITY

Not applicable.

2 EXECUTIVE SUMMARY

Not applicable.

3 PURPOSE OF REPORT

This report seeks approval to establish:

preferred supplier arrangement LG314/690/16/052 for sewer maintenance hole condition assessments for a period of three years with two by one year extension options, and

register of prequalified suppliers LG314/765/15/003 for sewer maintenance hole refurbishment for a period of three years with two by one year extension options.

Due to these requirements all being part of the ongoing sewer maintenance hole refurbishment program, these contracts and two benchmark projects were combined in a single tender process to provide operational efficiencies through the documentation, invitation and evaluation process. 4 PREVIOUS RESOLUTIONS Not applicable. 5 DISCUSSION The Council of the City of Gold Coast (Council) Gold Coast Water Directorate requires the services of suitably qualified, experienced and competent contractors to undertake the assessment and refurbishment of sewer maintenance holes across the City of Gold Coast. Council has determined that the most advantageous and operationally suitable method of delivering the services is to establish a preferred supplier arrangement for maintenance hole condition assessments and a register of pre-qualified suppliers for maintenance hole refurbishments, funded by a budget extending beyond one financial year. Tenders were invited by advertising in the Gold Coast Bulletin, LG Tender Box and the City of Gold Coast websites on 21 November 2015. The tender period closed on 15 December 2015. The tender comprised four separable portions as follows. Separable Portion 1 (SP1) – Preferred Supplier Arrangement for Sewer Maintenance

Hole Condition Assessment Separable Portion 2 (SP2) – Register of Pre-qualified Suppliers for Sewer

Maintenance Hole Refurbishment Separable Portion 3 (SP3) – Benchmark Package 1 Sewer Maintenance Hole

Refurbishment. (SP3 has been awarded under delegated authority and is not a subject of this Agenda Report).

712th Council Meeting 16 February 2016 27 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 4 (Continued) CONTRACT NO. LG314/690/16/052 – PREFERRED SUPPLIER ARRANGEMENT FOR SEWER MAINTENANCE HOLE CONDITION ASSESSMENT AND CONTRACT NO. LG314/765/15/003 – REGISTER OF PRE-QUALIFIED SUPPLIERS FOR SEWER MAINTENANCE HOLE REFURBISHMENT LG314/690/16/052, LG314/765/15/003 Separable Portion 4 (SP4) – Benchmark Package 2 Sewer Maintenance Hole

Refurbishment (SP4 has been awarded under delegated authority and is not a subject of this Agenda Report).

Under SP1 (preferred supplier arrangement), Council will issue packages of work to the preferred supplier as and when the need arises with the total cost of each package based on the preferred supplier’s awarded schedule of rates. For the register of pre-qualified suppliers under SP2, Council will prepare packages of work with project specific specifications to be issued to all the members of the register to provide a quotation. The most advantageous offer to Council will be selected. The pre-determined evaluation criteria used to award SP3 and SP4 benchmark packages by delegated authority was also used to determine which suppliers would be recommended for inclusion on the SP2 register. The following tenders were received.

Tenders Separable Portion

1 Christopher Contracting Pty Ltd as Trustee for the Christopher Contracting Trust

1,2,3,4

2 Monadelphous Engineering Pty Ltd 2,3,4

3 NTS Group Pty Ltd 1,2,3,4

4 Red & White Group Pty Ltd 2,3,4

5 Waste Water Lining Systems Pty Ltd 2,3

6 Asset Mapping Services Pty Ltd as Trustee for Tansley Family Trust

1

7 Independent Sewer Consulting Services Pty Ltd 1

8 JDP Applications Pty Ltd 1

9 Jefnel Pty Ltd as Trustee for Rayner Family Trust 1

The tenders were evaluated using a three gate evaluation process incorporating the evaluation criteria that formed part of the Invitation to Offer documents. Evaluations were undertaken by four officers of Council and the result was reviewed and verified independently by an officer from within the Chief Procurement Office. The names of the evaluation team and the scoring matrix with assigned weightings are on file for reference. The first gate of the evaluation process considered the evaluation of the following specific mandatory criteria.

712th Council Meeting 16 February 2016 28 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 4 (Continued) CONTRACT NO. LG314/690/16/052 – PREFERRED SUPPLIER ARRANGEMENT FOR SEWER MAINTENANCE HOLE CONDITION ASSESSMENT AND CONTRACT NO. LG314/765/15/003 – REGISTER OF PRE-QUALIFIED SUPPLIERS FOR SEWER MAINTENANCE HOLE REFURBISHMENT LG314/690/16/052, LG314/765/15/003 SP1: Documented quality assurance (QA) system. Documented Work Health and Safety (WHS) management system. SP2: Documented quality assurance (QA) system. Documented Work Health and Safety (WHS) management system. Documented environmental management system (EMS). Confined space certification. The first gate of the evaluation process found all offers to be conforming to the mandatory requirements of Council’s Invitation to Offer documents. The second gate of the evaluation process considered the evaluation of the following scoring criteria and determined those suppliers deemed capable of meeting Council’s requirements. SP1: WHS, QA systems. Capability. Relevant experience. Methodology and programming of works. Local Business and Industry. Gold Coast Business Excellence Awards. SP2: WHS, QA and EMS systems. Capability. Relevant experience. Methodology. Programming of works. Local Business and Industry. Gold Coast Business Excellence Awards. The resultant aggregated scores were as follows:

712th Council Meeting 16 February 2016 29 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 4 (Continued) CONTRACT NO. LG314/690/16/052 – PREFERRED SUPPLIER ARRANGEMENT FOR SEWER MAINTENANCE HOLE CONDITION ASSESSMENT AND CONTRACT NO. LG314/765/15/003 – REGISTER OF PRE-QUALIFIED SUPPLIERS FOR SEWER MAINTENANCE HOLE REFURBISHMENT LG314/690/16/052, LG314/765/15/003 Separable Portion 1: Preferred Supplier Arrangement for Sewer Maintenance Hole Condition Assessment

Tenderers

Evaluation Score

(without Local

Content)

Local Business

and Industry

Gold Coast

Business Awards

Evaluation Score




68 15 0 83%

2 NTS Group Pty Ltd 37 15 0 52%

3 Jefnel Pty Ltd as Trustee for Rayner Family Trust

35 15 0 50%


32 15 0 47%

5 Independent Sewer Consulting Services Pty Ltd

44 1 0 45%

6 JDP Applications Pty Ltd 40 2 0 42%

Asset Mapping Services Pty Ltd as Trustee for Tansley Family Trust scored sufficiently in the evaluation of their capability and was determined as a supplier capable of meeting Council’s requirements. As a result, this tenderer was moved through to the third evaluation gate. Separable Portion 2: Register of Pre-qualified Suppliers for Sewer Maintenance Hole Refurbishment

Tenderers

Evaluation Score

(without Local

Content)

Local Business

and Industry

Gold Coast

Business Awards

Evaluation Score




57 15 0 72%

2 Monadelphous Engineering Pty Ltd

68 2 0 70%

3 NTS Group Pty Ltd 43 15 0 58%

4 Waste Water Lining Systems Pty Ltd

30 15 0 45%

5 Red & White Group Pty Ltd 27 15 0 42%

712th Council Meeting 16 February 2016 30 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 4 (Continued) CONTRACT NO. LG314/690/16/052 – PREFERRED SUPPLIER ARRANGEMENT FOR SEWER MAINTENANCE HOLE CONDITION ASSESSMENT AND CONTRACT NO. LG314/765/15/003 – REGISTER OF PRE-QUALIFIED SUPPLIERS FOR SEWER MAINTENANCE HOLE REFURBISHMENT LG314/690/16/052, LG314/765/15/003 The first three tenderers scored sufficiently in the evaluation of their capability and were determined as suppliers capable of meeting Council’s requirements. As a result, these tenderers were moved through to the third evaluation gate. The third gate of the evaluation process considered the value for money of those tenderers who are considered capable, based on the total tendered amount. The total amounts received are listed below. Separable Portion 1: Preferred Supplier Arrangement for Sewer Maintenance Hole Condition Assessment

Tenderers

Local Business

and Industry

Gold Coast

Business Awards

Total Tendered Amounts per financial

year based on Schedule of Rates* (excl. GST)


15 0 $ 87,700.00

Council’s estimate per financial year was: $ 150,000.00

*Without rise and fall Asset Mapping Services Pty Ltd as Trustee for Tansley Family Trust is considered capable of undertaking the works and reflects the tender for SP1 most advantageous to Council. Asset Mapping Services Pty Ltd as Trustee for Tansley Family Trust has satisfied the evaluation team of their clear understanding of the scope of work, that this is not at variance with the requirements of the Invitation to Offer document and has also satisfied the evaluation team as to their ability to complete this contract in addition to their current contractual commitments. Separable Portion 2: Register of Pre-qualified Suppliers for Sewer Maintenance Hole Refurbishment

Tenderers

Local Business

and Industry

Gold Coast

Business Awards

Total Lump Sum

Amount for SP3 (excl.

GST)

Total Lump Sum

Amount for SP4 (excl.

GST)

Total Lump Sum Amounts

for SP3 and SP4

combined (excl. GST)

1 NTS Group Pty Ltd 15 0 $ 630,560.00 $ 447,700.00 $ 1,078,260.00

2

Christopher Contracting Pty Ltd as Trustee for the Christopher Contracting Trust

15 0

$ 699,887.10 $ 531,350.60 $ 1,231,237.70

3 Monadelphous Engineering Pty Ltd

2 0 $ 889,195.02 $ 517,845.38 $ 1,407,040.40

Council’s estimate for SP3 and SP4 was:

$ 700,000.00 $ 400,000.00 $ 1,100,000.00

712th Council Meeting 16 February 2016 31 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 4 (Continued) CONTRACT NO. LG314/690/16/052 – PREFERRED SUPPLIER ARRANGEMENT FOR SEWER MAINTENANCE HOLE CONDITION ASSESSMENT AND CONTRACT NO. LG314/765/15/003 – REGISTER OF PRE-QUALIFIED SUPPLIERS FOR SEWER MAINTENANCE HOLE REFURBISHMENT LG314/690/16/052, LG314/765/15/003 All three tenderers for SP2 are considered capable of undertaking the works and reflect the tenders that are most advantageous to Council. These tenderers have satisfied the evaluation team of their clear understanding of the scope of work, that this is not at variance with the requirements of the Invitation to Offer document and have also satisfied the evaluation team as to their ability to complete works under SP2 in addition to their current contractual commitments. This contract is a register of pre-qualified suppliers. As and when the need arises for the work to be undertaken and if not included in the contract documentation, Council will prepare project specific specifications. This provides the most advantageous outcome to Council in utilising this arrangement. Tenders received for SP2 formed the basis for award of SP3 and SP4. SP3 Benchmark Package 1 was awarded under delegation to NTS Group Pty Ltd for

the lump sum price of $630,560.00. SP4 Benchmark Package 2 was awarded under delegation to NTS Group Pty Ltd for

the lump sum price of $447,700.00. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN The project is aligned with the following themes, outcomes and signature actions of the City Vision and Gold Coast 2020. Supporting the delivery of Gold Coast 2020 B We manage the city responsibly Signature actions: Key programs of work

Provide reliable water, recycled water and sewerage treatment plant services, promote water efficiency and tackle water waste by reducing water leakage and improving customer awareness of smart water use. Manage the maintenance, renewal and delivery infrastructure for the city through the Total Asset Management Plan and the Capital Works program.

7 COMMONWEALTH GAMES IMPACT Not applicable. 8 FUNDING AND RESOURCING REQUIREMENTS Budget/Funding Considerations Separable Portion 1: Preferred Supplier Arrangement for Sewer Maintenance Hole Condition Assessment The estimated contract cost for this work is summarised as follows.

712th Council Meeting 16 February 2016 32 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 4 (Continued) CONTRACT NO. LG314/690/16/052 – PREFERRED SUPPLIER ARRANGEMENT FOR SEWER MAINTENANCE HOLE CONDITION ASSESSMENT AND CONTRACT NO. LG314/765/15/003 – REGISTER OF PRE-QUALIFIED SUPPLIERS FOR SEWER MAINTENANCE HOLE REFURBISHMENT LG314/690/16/052, LG314/765/15/003


(excl. GST)

2015-16 4 months $ 40,000.00

2016-17 12 months $ 87,700.00

2017-18 12 months $ 87,700.00

2018-19 8 months $ 60,000.00

Total Cost: $ 275,400.00

Sufficient funds remain in the Budget Centre GW2030002 and Cost Centre 1010039 for the 2015-16 financial year to provide these services for this financial year. Similar budgets will be submitted by the Asset Custodian to Council for approval, for each of the subsequent financial years. This arrangement is a Schedule of Rates contract for three years. Payments will be made to the Contractor based on the rates offered multiplied by the actual quantum of work undertaken. For the purposes of obtaining competitive offers and evaluating these equitably, estimates were given of the volumes of work likely to be ordered for one year of the contract. Costs for Capital Works and Service Proposals Separable Portion 2: Register of Pre-qualified Suppliers for Sewer Maintenance Hole Refurbishment If the offers of NTS Group Pty Ltd, Christopher Contracting Pty Ltd as Trustee for the Christopher Contracting Trust and Monadelphous Engineering Pty Ltd were to be accepted for this separable portion of the contract, the total allocation required for this work over the three year period spanning financial years 2015-16 to 2018-19 is summarised as follows.

Item Estimate (excl. GST)

Contract Cost: $ 3,277,000.00

Internal Costs

Project Management $ 131,000.00

Investigations / non-briefed work $ 22,000.00

Contract administration $ 131,000.00

Indirect project provisional amount (contingency) $ 437,000.00

Procurement $ 11,000.00

Contract Superintendency $ 131,000.00

Fees and approvals $ 11,000.00

Outsourced services $ 88,000.00

Service alterations $ 131,000.00

Total Costs: $ 4,370,000.00

712th Council Meeting 16 February 2016 33 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 4 (Continued) CONTRACT NO. LG314/690/16/052 – PREFERRED SUPPLIER ARRANGEMENT FOR SEWER MAINTENANCE HOLE CONDITION ASSESSMENT AND CONTRACT NO. LG314/765/15/003 – REGISTER OF PRE-QUALIFIED SUPPLIERS FOR SEWER MAINTENANCE HOLE REFURBISHMENT LG314/690/16/052, LG314/765/15/003 Expenditure by financial year is estimated as follows:


(excl. GST)

2015-16 4 months $ 220,000.00

2016-17 12 months $ 1,600,000.00

2017-18 12 months $ 1,450,000.00

2018-19 8 months $ 1,100,000.00

Total Cost: $ 4,370,000.00

The amount approved in the Four Year Capital Works Program by Service 2015-16 to 2018-19 (adopted 16 June 2015) budget document, as amended by G15.0626.004 for this project is as follows. Financial Year

Cost Centre

WBS Description Estimate (excl. GST)

2015-16 1010188 71251 Maintenance hole refurbishments

$ 1,600,000.00*


$ 1,600,000.00


$ 1,450,000.00


$1,450,000.00

Total Funding Available: $ 6,100,000.00 *Budget committed under SP3 and SP4 The total estimated contract cost including contingencies is less than the budget-approved amount. SP2 is a register of pre-qualified suppliers. SP3 and SP4 Benchmark Packages were provided for the purposes of obtaining competitive tenders and evaluating these equitably. During the SP2 contract period, quotes will be sought based on the actual quantum of work required with payments made to the contractor on a Lump Sum basis. In accordance with the budget review guidelines the following circumstances require referral to the Special Budget Committee Not applicable. People and Culture

No extra staff will be required for this contract.

712th Council Meeting 16 February 2016 34 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 4 (Continued) CONTRACT NO. LG314/690/16/052 – PREFERRED SUPPLIER ARRANGEMENT FOR SEWER MAINTENANCE HOLE CONDITION ASSESSMENT AND CONTRACT NO. LG314/765/15/003 – REGISTER OF PRE-QUALIFIED SUPPLIERS FOR SEWER MAINTENANCE HOLE REFURBISHMENT LG314/690/16/052, LG314/765/15/003 9 RISK MANAGEMENT

The project risks have been identified and relevant mitigation measures applied. The risk assessment is on file for reference. 10 STATUTORY MATTERS

The tender process has been carried out in accordance with the Local Government Regulation 2012 which requires adherence to sound contracting principles. These principles are defined in Section 104(3) of the Local Government Act 2009 and are as follows.

Value for money. Open and effective competition. The development of competitive local business and industry. Environmental protection. Ethical behaviour and fair dealing. These principles form part of the tender process and are reinforced within the tender evaluation criteria as appropriate. Separable Portion 1: Preferred Supplier Arrangement for Sewer Maintenance Hole Condition Assessment Section 233 of the Local Government Regulation 2012 provides for the creation of a preferred supplier arrangement for the supply of particular goods or services. Separable Portion 2: Register of Pre-qualified Suppliers for Sewer Maintenance Hole Refurbishment Section 232 of the Local Government Regulation 2012 provides for the creation of a register of pre-qualified suppliers of particular goods or services. Council may then select a member from this register. 11 COUNCIL POLICIES

The tender process has been carried out in accordance with the requirements of Council’s Procurement Policy and Standards. 12 DELEGATIONS

Not applicable. 13 COORDINATION & CONSULTATION

The following internal and external stakeholders have been involved / participated in the proposal to date.

712th Council Meeting 16 February 2016 35 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 4 (Continued) CONTRACT NO. LG314/690/16/052 – PREFERRED SUPPLIER ARRANGEMENT FOR SEWER MAINTENANCE HOLE CONDITION ASSESSMENT AND CONTRACT NO. LG314/765/15/003 – REGISTER OF PRE-QUALIFIED SUPPLIERS FOR SEWER MAINTENANCE HOLE REFURBISHMENT LG314/690/16/052, LG314/765/15/003 Name and/or Title of the Stakeholder Consulted



A/Executive Coordinator Source to Contract Jodie Maloney


A/Coordinator Source to Contract Matthew Farrow


Manager Asset Solutions Gold Coast Water Yes Executive Coordinator, Project Specification and Delivery Phil Selmes

Gold Coast Water Yes

Coordinator Project Specification and Delivery Ian Gilbert


Senior Project Manager Wilfried Beerman


Right to Information (RTI) and Information Privacy (IP) Legislation 2009 Not applicable.

14 STAKEHOLDER IMPACTS


No adverse impacts are expected to be experienced by external / community stakeholders during the undertaking of this work. Benefits include improved sewer network and infrastructure resulting in reduced emergency works and less disruption to the public.

Internal (Organisational) Stakeholder Impacts

Not applicable.

15 TIMING The anticipated contract start date for SP1 and SP2 is two weeks after approval by Council. 16 CONCLUSION Separable Portion 1: Preferred Supplier Arrangement for Sewer Maintenance Hole Condition Assessment The recommended tenderer is experienced in the type of work to be undertaken. The evaluation of the tenders received indicates that the offer submitted by Asset Mapping Services Pty Ltd as Trustee for Tansley Family Trust is the one most advantageous to Council and should be recommended for acceptance.

712th Council Meeting 16 February 2016 36 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 4 (Continued) CONTRACT NO. LG314/690/16/052 – PREFERRED SUPPLIER ARRANGEMENT FOR SEWER MAINTENANCE HOLE CONDITION ASSESSMENT AND CONTRACT NO. LG314/765/15/003 – REGISTER OF PRE-QUALIFIED SUPPLIERS FOR SEWER MAINTENANCE HOLE REFURBISHMENT LG314/690/16/052, LG314/765/15/003 Separable Portion 2: Register of Pre-qualified Suppliers for Sewer Maintenance Hole Refurbishment The recommended tenderers are experienced in the type of work to be undertaken. The evaluation of the tenders received indicates that the offers submitted by NTS Group Pty Ltd, Christopher Contracting Pty Ltd as Trustee for the Christopher Contracting Trust and Monadelphous Engineering Pty Ltd are the ones most advantageous to Council and should be recommended for acceptance. 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Council accepts the schedule of rates (excluding GST) submitted by Asset

Mapping Services Pty Ltd as Trustee for Tansley Family Trust without rise and fall, to establish LG314/690/16/052 - Preferred Supplier Arrangement for Sewer Maintenance Hole Condition Assessment for a period of three years with two by one year extension options.

2 That Council accepts the tenders submitted from the following to serve on the register of prequalified suppliers for LG314/765/15/003 - Register of Prequalified Suppliers for Sewer Maintenance Hole Refurbishment for a period of three years with two by one year extension options.

Separable Portion 2 - Register of Pre-qualified Suppliers for Sewer Maintenance Hole Refurbishment

NTS Group Pty Ltd Christopher Contracting Pty Ltd as

Trustee for the Christopher Contracting Trust

Monadelphous Engineering Pty Ltd

3 That it be noted that contract LG314/690/16/052 - Preferred Supplier Arrangement for Sewer Maintenance Hole Condition Assessment will require funding over four financial years. A budget has been approved for the current financial year and funds are available in Budget Centre GW2030002 and Cost Centre 1010039. Budgets will be submitted by the Asset Custodian for approval for the subsequent financial years.

4 That it be noted that contract LG314/765/15/003 - Register of Pre-qualified Suppliers for Sewer Maintenance Hole Refurbishment will require funding over four financial years. A budget has been approved for the current financial year and funds are available in the Water and Sewage Infrastructure Reserve to cover funding required for the 2016-17 to 2018-19 financial years.


Aidan Heading Glen Potter Senior Procurement Contracts Officer Director Organisational Services 14 January 2015

TRACKS REF: #52876338

712th Council Meeting 16 February 2016 37 Governance Administration & Finance Committee Meeting 11 February 2016 Adopted Report ITEM 4 (Continued) CONTRACT NO. LG314/690/16/052 – PREFERRED SUPPLIER ARRANGEMENT FOR SEWER MAINTENANCE HOLE CONDITION ASSESSMENT AND CONTRACT NO. LG314/765/15/003 – REGISTER OF PRE-QUALIFIED SUPPLIERS FOR SEWER MAINTENANCE HOLE REFURBISHMENT LG314/690/16/052, LG314/765/15/003 COMMITTEE RECOMMENDATION GA16.0211.004 moved Cr Owen-Jones seconded Cr Tozer 1 That Council accepts the schedule of rates (excluding GST) submitted by Asset

Mapping Services Pty Ltd as Trustee for Tansley Family Trust without rise and fall, to establish LG314/690/16/052 - Preferred Supplier Arrangement for Sewer Maintenance Hole Condition Assessment for a period of three years with two by one year extension options.

2 That Council accepts the tenders submitted from the following to serve on the register of prequalified suppliers for LG314/765/15/003 - Register of Prequalified Suppliers for Sewer Maintenance Hole Refurbishment for a period of three years with two by one year extension options.

Separable Portion 2 - Register of Pre-qualified Suppliers for Sewer Maintenance Hole Refurbishment

NTS Group Pty Ltd Christopher Contracting Pty Ltd as

Trustee for the Christopher Contracting Trust

Monadelphous Engineering Pty Ltd

3 That it be noted that contract LG314/690/16/052 - Preferred Supplier Arrangement for Sewer Maintenance Hole Condition Assessment will require funding over four financial years. A budget has been approved for the current financial year and funds are available in Budget Centre GW2030002 and Cost Centre 1010039. Budgets will be submitted by the Asset Custodian for approval for the subsequent financial years.

4 That it be noted that contract LG314/765/15/003 - Register of Pre-qualified Suppliers for Sewer Maintenance Hole Refurbishment will require funding over four financial years. A budget has been approved for the current financial year and funds are available in the Water and Sewage Infrastructure Reserve to cover funding required for the 2016-17 to 2018-19 financial years.

CARRIED


ITEM 5 ORGANISATIONAL SERVICES CONTRACT NO. LG314/1211/16/055 – DESIGN AND CONSTRUCTION OF STAGE 1 OF THE LONG TERM RECYCLED WATER RELEASE PLAN LG314/1211/16/055 1 BASIS FOR CONFIDENTIALITY Not applicable. 2 EXECUTIVE SUMMARY Not applicable. 3 PURPOSE OF REPORT This report seeks approval in accordance with section 228(3) of the Local Government Regulation 2012 to invite expressions of interest before inviting written tenders for contract LG314/1211/16/055 for design and construction of Stage 1 of the Long Term Recycled Water Release Plan. 4 PREVIOUS RESOLUTIONS Ex. Minute Number G15.0728.008 (in part):

2. Council notes progress on investigations associated with the long term recycled water release project.

3. Council endorses the proposed plan for a long term recycled water release for

commencement of negotiations with the Environmental Regulator.

4. Stage 1 of the “Long Term Recycled Water Release Plan” commencing 2015-16 (Project Number 70443) which is fully funded from existing reserves.

5 DISCUSSION Since July 2015 when the Council of the City of Gold Coast (Council) endorsed the proposed plan for the Long Term Recycled Water Release, the project team have been preparing project management documentation that includes a project delivery plan outlining the preferred delivery method. A vital component of this has included engagement with the supply market canvasing a number of contract options with potential offerors, where the project scope, timeframe and risks have been discussed. The market research was undertaken in November 2015 by staff from Gold Coast Water and the Chief Procurement Office and involved telephone conferences or face-to-face meetings with 11 separate entities. A copy of the document titled “Sourcing Options Analysis and Recommendation” is on file. As a result of this market research, Council has determined that in terms of section 228(3) of the Local Government Regulation 2012, the most advantageous and operationally suitable method of delivering these works (ie. the preferred procurement option) is to engage an external contractor by first inviting expressions of interest before inviting tenders. An expression of interest is in the public interest for the following reasons.

Ensures the time invested by Council and the supply market is optimised because

only companies deemed capable of submitting genuinely competitive offers will be invited to participate in the more detailed subsequent tender process.


ITEM 5 (Continued) CONTRACT NO. LG314/1211/16/055 – DESIGN AND CONSTRUCTION OF STAGE 1 OF THE LONG TERM RECYCLED WATER RELEASE PLAN LG314/1211/16/055 Assists in finalising a procurement strategy that will facilitate the delivery of the

requirements and reduce the cost and risk of the overall project by:

- Identifying the structure of the market and how best to approach it from a contractual perspective

- Assessing the level of competition and the behaviour of the supply market

- Highlighting risks via potential risk workshops with shortlisted tenderers to price out or share risk

- identifying opportunities and potential alternative options prior to contractually committing to a final tender process.

Therefore, in accordance with section 228(3) of the Local Government Regulation 2012, approval is sought to invite expressions of interest before inviting written tenders for contract LG314/1211/16/055 for design and construction of Stage 1 of the Long Term Recycled Water Release Plan. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN The project is aligned with the following theme and outcome of the City Vision and Gold Coast 2020. Theme 1 – The best place to live and visit Outcomes: What we want to see by 2020

1.3 We have sustainable solid and liquid waste disposal

Signature actions: Key programs of work Design and construct a long term release system for excess recycled water for the City.

7 COMMONWEALTH GAMES IMPACT The proposed long term release plan projects that no construction activity associated with the Seaway release will be undertaken in close proximity to the Games occurring. Stage 1 construction works will be commenced in 2016-17 and Stage 2 construction works will commence in 2019-20. 8 FUNDING AND RESOURCING REQUIREMENTS Budget/Funding Considerations Not applicable. Costs for Capital Works and Service Proposals At the end of the 2014-15 financial year, Gold Coast Water had a capital reserve sufficient to cover immediate expenditure for this project.


ITEM 5 (Continued) CONTRACT NO. LG314/1211/16/055 – DESIGN AND CONSTRUCTION OF STAGE 1 OF THE LONG TERM RECYCLED WATER RELEASE PLAN LG314/1211/16/055 People and Culture An additional full time employee has recently been appointed and assigned to this project to assist the project team. The position was not a new position but was previously unoccupied and is contained within Gold Coast Water’s Asset Solutions branch structure as part of the capital project delivery team. 9 RISK MANAGEMENT The proposed project addresses the existing corporate risk No. CO000501 “seaway recycled water release exceeds capacity causing adverse environmental harm”. Other project risks have been identified and relevant mitigation measures applied. The risk assessment is on file for reference. 10 STATUTORY MATTERS The expression of interest and subsequent tender process is to be carried out in accordance with the Local Government Regulation 2012 which requires adherence to sound contracting principles. These principles are defined in Section 104(3) of the Local Government Act 2009 and are as follows. Value for money. Open and effective competition. The development of competitive local business and industry. Environmental protection. Ethical behaviour and fair dealing. These principles form part of the Invitation to Offer process and are reinforced within the evaluation criteria as appropriate. Section 228(3), (5) and (6) of the Local Government Regulation 2012 provides, that if in the public interest, to invite expressions of interest before inviting written tenders, and record the reasons for making the resolution. 11 COUNCIL POLICIES The expression of interest and subsequent tender process is to be carried out in accordance with the requirements of Council’s Procurement Policy and Standards. 12 DELEGATIONS Not applicable. 13 COORDINATION & CONSULTATION The following internal and external stakeholders have been involved / participated in the proposal to date.


ITEM 5 (Continued) CONTRACT NO. LG314/1211/16/055 – DESIGN AND CONSTRUCTION OF STAGE 1 OF THE LONG TERM RECYCLED WATER RELEASE PLAN LG314/1211/16/055 Name and/or Title of the Stakeholder Consulted



Director Gold Coast Water Gold Coast Water Yes Manager Asset Solutions Gold Coast Water Yes Coordinator Project Specification and Delivery Mark Herrmann


Chief Procurement Officer Organisational Services Yes Acting Executive Coordinator Source to Contract Jodie Maloney


Right to Information (RTI) and Information Privacy (IP) Legislation 2009 Not applicable. 14 STAKEHOLDER IMPACTS External / community stakeholder Impacts An extensive Communications Plan has been developed that identifies key community stakeholders including recreational divers, boaters etc. and includes an action plan regarding consultation and stakeholder interactions. Internal (Organisational) Stakeholder Impacts Ongoing coordination and consultation occurs with officers from Economic Development and Major Projects associated with any potential development activity within proximity to the Seaway release. The Communications Plan also covers impacts on internal stakeholders. 15 TIMING The anticipated time frames are: Expression of interest to be advertised in May 2016. Expression of interest submissions close in June 2016. Tenders proposed to be invited in August 2016. Proposed contract award November 2016. 16 CONCLUSION It is recommended that it is in the public interest and the most advantageous outcome for Council to invite expressions of interests for design and construction of Stage 1 of the Long Term Recycled Water Release Plan before inviting written tenders.


ITEM 5 (Continued) CONTRACT NO. LG314/1211/16/055 – DESIGN AND CONSTRUCTION OF STAGE 1 OF THE LONG TERM RECYCLED WATER RELEASE PLAN LG314/1211/16/055 17 RECOMMENDATION It is recommended that Council resolves as follows: That it is in the public interest to invite expressions of interest for design and construction of Stage 1 of the Long Term Recycled Water Release Plan (LG314/1211/16/055) prior to inviting written tenders. Author: Authorised by:

Jodie Maloney Glen Potter Procurement Contracts Officer Director Organisational Services 27 January 2016 #52854997

COMMITTEE RECOMMENDATION GA16.0211.005 moved Cr Owen-Jones seconded Cr Crichlow That it is in the public interest to invite expressions of interest for design and construction of Stage 1 of the Long Term Recycled Water Release Plan (LG314/1211/16/055) prior to inviting written tenders.

CARRIED


ITEM 6 ORGANISATIONAL SERVICES CONTRACT NO. LG314/1185/16/009 - COUNCIL CHAMBERS AUDIO VISUAL UPGRADE / REPLACEMENT LG314/1185/16/009(P1) 1 BASIS FOR CONFIDENTIALITY Not applicable. 2 EXECUTIVE SUMMARY Not applicable. 3 PURPOSE OF REPORT This report seeks approval, in accordance with section 230(1) of the Local Government Regulation 2012 to prepare and adopt a Tender Consideration Plan to establish contract LG314/1185/16/009 to provide an upgrade / replacement of the Audio Visual (AV) equipment in Council Chambers and related support for three years. 4 PREVIOUS RESOLUTIONS Not applicable. 5 DISCUSSION Council Chambers provides a platform to present the City of Gold Coast to its ratepayers and residents, as well as to the wider world. The AV system supports the professionalism of this platform. To ensure the reliability of the AV system moving forward, an upgrade / replacement of a number of components of the system, including ongoing support is required.

This work would also provide an opportunity to update the current system (it was last upgraded in 2008) with the latest secure technologies for presentation; providing convenience, ease of use, and interoperability with newer technologies including wireless presentation from any wireless enabled device and support for multi-media-rich video presentations and collaboration, enabling the inclusion of domestic or overseas meeting participants in recordings / streaming / videoconferencing / collaboration.

The current system and proposed upgrade can be explained as follows.

5.1 Current System The system is utilised to record Council meetings, provide audio in Chamber (including

public gallery and other rooms), provide external live streaming via Council’s website and provide audio for presentations and events in the foyer and forecourt.

The equipment is an analogue system, about 12 years old, and consists of a mix of old and outdated technology. The system is starting to show signs of malfunction from time to time and the vendor has advised that the risk of failure will increase over time and cannot predict when the system might fail.

The system is audio, not visual and unsuited for video conferencing. The current equipment (analogue) can’t integrate with newer digital equipment for

recording / videoconferencing and has reached an age where it is unsupportable (i.e. similar to an 11 year old TV, it has all analogue ports / inputs and can’t connect to newer digital equipment / technology).

The regularity and severity of system malfunctions is increasing.


ITEM 6 (Continued) CONTRACT NO. LG314/1185/16/009 - COUNCIL CHAMBERS AUDIO VISUAL UPGRADE / REPLACEMENT LG314/1185/16/009(P1) The risk of not upgrading the system would mean failure during a Council/Committee

meeting resulting in the loss of recording, live streaming via Council’s website, audio in the Council Chambers, public gallery and other rooms. If the system were to fail this would also impact the ability to hold functions, events, ceremonies in the Chambers foyer and forecourt due to the audio, microphone system being out of order.

it is increasingly more difficult to source analogue parts to fix malfunctions in a timely manner.

5.2 Upgrade

To upgrade the system from analogue to the latest digital technology Upgrade will provide reliability and ensure that members of public and media etc. can

access the meetings via external live streaming or attending the public gallery. To provide full video conferencing capacity that includes three high definition cameras. The proposed upgrade from analogue to digital provides an opportunity to update the

current system (last upgraded 2008) with some of the latest technologies for presentation, providing convenience, ease of use, and inter-operability with new technologies. This requires the LCD monitors, control panels, projectors, additional provisions for better sound, and back room equipment to be upgraded / replaced.

To provide additional ceiling speakers and an enhanced amplifier to improve the quality of sound within the Chambers.

To provide two 65in LED Panels to replace the current floor television to provide the Mayor, CEO and Directors with an enhanced view of the minutes and presentations. The current television, which was a work around, has become a Workplace Health and Safety hazard.

To provide a wireless collaboration solution for any laptop or mobile device to project their presentations onto the Council meeting screens.

5.3 Procurement process

As the upcoming Council election provides an extended recess period, it was considered opportune to implement the system during this period. As a tender process would not meet the required timeline for the implementation window, an Invitation to Quote process was used instead and issued to three prospective suppliers. Prestige AV Solutions (local) Video Pro Pty Ltd (Brisbane, with an established branch office on the Gold Coast) Pro AV Solutions (Brisbane). The Invitation to Quote was issued on 12 January 2016 and closed 22 January 2016. Only one offer was received from Video Pro Pty Ltd. The offers were evaluated using a three gate evaluation process incorporating the evaluation criteria that formed part of the Invitation to Quote documents. Evaluations were undertaken by three officers of Council. The first gate of the evaluation process considered the evaluation of the following specific mandatory criteria. GST registration. ABN registration.

The quotation conformed to the mandatory criteria.


ITEM 6 (Continued) CONTRACT NO. LG314/1185/16/009 - COUNCIL CHAMBERS AUDIO VISUAL UPGRADE / REPLACEMENT LG314/1185/16/009(P1) The second gate of the evaluation process considered the evaluation of the following capability criteria. Relevant experience. Requirements. Methodology and timing. Local Business and Industry. Gold Coast Business Excellence Awards.

The three Council Officers reviewed the quotation and found it met or exceeded the capability criteria in all cases. Additionally Video Pro has an established branch office on the Gold Coast. The third gate of the evaluation process considered the value for money of those offerors who are considered capable. The total amount received is listed below.

Offeror Local Business

and Industry Gold Coast

Business AwardsTotal (exc GST) for

three years

1 Video Pro Pty Ltd 9 0 $ 278,215

Council’s estimate was: $ 250,000

Video Pro is considered capable of undertaking the works and the quotation reflects an offer advantageous to Council and has satisfied the evaluation team of their clear understanding of the scope of work. A purchase order for the purchase was issued to Video Pro Pty Ltd for the work on 2 February 2016. As a quotation process was used for this engagement instead of a tender process, approval is sought, in accordance with section 230(1) of the Local Government Regulation 2012 to prepare and adopt a Tender Consideration Plan to establish contract LG314/1185/16/009 to provide an upgrade / replacement of the Audio Visual (AV) equipment in Council Chambers and related support for three years. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN 1.5 - We are an active digital city. 7 COMMONWEALTH GAMES IMPACT

Not applicable.

8 FUNDING AND RESOURCING REQUIREMENTS The estimated contract cost for this work is summarised as follows.

2015/16 2016/17 2017/18 Total Chambers AV Upgrade / Replacement

$259,855 $259,855

Ongoing Support $6,120 $6,120 $6,120 $18,360Total $265,975 $6,120 $6,120 $278,215

Funding is from Responsibility Centre CG5810.


ITEM 6 (Continued) CONTRACT NO. LG314/1185/16/009 - COUNCIL CHAMBERS AUDIO VISUAL UPGRADE / REPLACEMENT LG314/1185/16/009(P1) People and Culture

No extra staff will be required for this contract. 9 RISK MANAGEMENT

There is an increasing risk of the current technology failing either intermittently or permanently. The risk of the works disrupting Council business has been mitigated by being carried out during the Council recess in March 2016. 10 STATUTORY MATTERS

Section 230(1) of the Local Government Regulation 2012 allows Council to enter into a contract without first inviting tenders if Council -

(a) decides, by resolution, to prepare a quote or tender consideration plan; and (b) prepares and adopts the plan.

A quote or tender consideration plan is a document stating—

(a) the objectives of the plan; and (b) how the objectives are to be achieved; and (c) how the achievement of the objectives will be measured; and (d) any alternative ways of achieving the objectives, and why the alternative ways

were not adopted; and (e) the proposed terms of the contract for the goods or services; and (f) a risk analysis of the market from which the goods or services are to be

obtained.

11 COUNCIL POLICIES The process has been carried out in accordance with the requirements of Council’s Procurement Policy and Standards. 12 DELEGATIONS The CEO has delegation to adopt a tender consideration plan. 13 COORDINATION & CONSULTATION The following internal and external stakeholders have been involved / participated in the proposal to date. Name and/or Title of the Stakeholder Consulted



Manager Council Support

Office of the Chief Executive Office

Yes

Coordinator Network Services Organisational Services

Yes

Coordinator Procurement Contracts – David McMath

Organisational Services

Yes


ITEM 6 (Continued) CONTRACT NO. LG314/1185/16/009 - COUNCIL CHAMBERS AUDIO VISUAL UPGRADE / REPLACEMENT LG314/1185/16/009(P1) Right to Information (RTI) and Information Privacy (IP) Legislation 2009

Not applicable.

14 STAKEHOLDER IMPACTS There is an increasing risk of the current technology failing either intermittently or permanently. The risk of the works disrupting Council business has been mitigated by being carried out during the Council recess in March 2016. 15 TIMING The anticipated contract start date is 14 March 2016 and the work should be completed in two weeks. 16 CONCLUSION The recommended offeror is experienced in the type of work to be undertaken. It is recommended that Council approves the use of section 230(1) of the Local Government Regulation 2012 to prepare and adopt a tender consideration plan to award contract LG314/1185/16/009 to include the upgrade / replacement of the AV equipment in Council Chambers and the subsequent maintenance for three years. 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That a tender consideration plan be prepared and adopted to establish contract

LG314/1185/16/009 to provide an upgrade / replacement of the Audio Visual (AV) equipment in Council Chambers and related support for three years.

2 That the Chief Executive Officer be delegated authority to finalise and adopt the tender consideration plan, which will eventuate in a contract with Video Pro Pty Ltd for a period of three years.

3 That it be noted that the contract will require funding over three financial years. A budget has been approved for the 2015-16 financial year and funds are available in Responsibility Centre CG5810. Budgets will be submitted by the Asset Custodian for approval for the two subsequent financial years. The total expenditure over the contract period is anticipated to be $278,215.


David McMath Coordinator Procurement Contracts

Glen Potter Director Organisational Services

29 January 2016

TRACKS REF: #53596710


ITEM 6 (Continued) CONTRACT NO. LG314/1185/16/009 - COUNCIL CHAMBERS AUDIO VISUAL UPGRADE / REPLACEMENT LG314/1185/16/009(P1) COMMITTEE RECOMMENDATION GA16.0211.006 moved Cr Crichlow seconded Cr Bell 1 That a tender consideration plan be prepared and adopted to establish contract

LG314/1185/16/009 to provide an upgrade / replacement of the Audio Visual (AV) equipment in Council Chambers and related support for three years.

2 That the Chief Executive Officer be delegated authority to finalise and adopt the tender consideration plan, which will eventuate in a contract with Video Pro Pty Ltd for a period of three years.

3 That it be noted that the contract will require funding over three financial years. A budget has been approved for the 2015-16 financial year and funds are available in Responsibility Centre CG5810. Budgets will be submitted by the Asset Custodian for approval for the two subsequent financial years. The total expenditure over the contract period is anticipated to be $278,215.

CARRIED


ITEM 7 ORGANISATIONAL SERVICES PROPOSED SALE OF COUNCIL LOTS – HUTCHINSON STREET, BURLEIGH HEADS PN212765/856(P2) Refer 1 page attachment 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT For Council to note that surplus parcels of Council freehold land have been identified at Hutchinson Street, Burleigh Heads and to seek a Council resolution to now sell the parcels via a public tender. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION The City holds freehold ownership of Lot 107 on RP910906 at Hutchinson Street, Burleigh Heads. The site has a total area of 19.8ha and is primarily used for waste management purposes as part of the Reedy Creek Waste and Recycling Centre. Lot 107 on RP910906 is a single lot as surveyed but comprises of three (3) separate parcels in that the main area of the parcel which is used for waste management purposes has an area of 19.13ha while two (2) other severance parcels have a combined area of 6,674m2. Those severance parcels are excess to the City’s needs and have been subject to preliminary actions to achieve a Reconfiguration of a Lot so that proposed Lots 2 (1,386m2), 3 (2,440m2) and 4 (2,848m2) on the proposed plan at the attachment can be separately titled. Historically, Lot 107 lay in private ownership until acquisition by Council in 2009 as an extension to the then existing City landfill site to the immediate west. The severance parcels now proposed for disposal are effectively a by-product of that acquisition, that is, not needed for waste purposes but part of the acquisition secured at the time. Subject to finalisation of the reconfiguration action, it is proposed that the lots be put to public tender. Each of the proposed lots are vacant and marketing advice suggests that the lots will be readily saleable in the current market. Indicative sale prices are noted on files held by the Property Services Branch. The lots lie in the high impact industry zone code under the City Plan and as part of the tender process, care will be taken to encourage appropriate outcomes on the respective lots to support the intent of the zone. Likewise, this will lessen if not negate in full the potential for any conflicts between end users of the sale lots and adjacent/nearby users, including that of the City as operator of the waste facility to the immediate north. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN 2.4 We are a city with a strong and globally competitive business environment Our city is an exciting place to do business.


ITEM 7 (Continued) PROPOSED SALE OF COUNCIL LOTS – HUTCHINSON STREET, BURLEIGH HEADS PN212765/856(P2) 7 COMMONWEALTH GAMES IMPACT Not applicable. 8 FUNDING AND RESOURCING REQUIREMENTS Consistent with a number of other more recent resolutions of Council, the proceeds of sale for the subject lots will, with adoption of the recommendations in this report, be transferred to the Cultural Precinct Reserve. 9 RISK MANAGEMENT Not applicable. 10 STATUTORY MATTERS The sale of surplus City lands will proceed by way of public auction consistent with the provisions of the Local Government Regulation. 11 COUNCIL POLICIES Not applicable. 12 DELEGATIONS Not applicable. 13 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted


Is the Stakeholder Satisfied With Content of Report and Recommendations (Yes/No) (comment as appropriate)

Waste and Resource Management Branch- Manager Matt Fraser

Community Services Yes- Waste and Resource Management Branch have identified the subject parcels as surplus to operational needs.

14 STAKEHOLDER IMPACTS Not applicable. 15 TIMING Implementation of the resolutions in this report will proceed immediately upon adoption with the prospect of the sales being finalised by mid-2016. 16 CONCLUSION Subject to the finalisation of reconfiguration/titling matters, three (3) separate lots of freehold land at Hutchinson Street, Burleigh Heads which are surplus to City needs will be available for sale via public tender.


ITEM 7 (Continued) PROPOSED SALE OF COUNCIL LOTS – HUTCHINSON STREET, BURLEIGH HEADS PN212765/856(P2) The resolution of the recommendations in this report will allow the parcels to be put to public tender as required by the Local Government Regulation. 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Council note that Lots 2, 3 & 4 on the proposed plan at the attachment are surplus

to the City’s needs and as a consequence the lots be put to public tender and be disposed of.

2 That the net proceeds of sale of the subject lots once received be transferred to the Cultural Precinct Reserve via the next budget review.


Brendan Madden Glen Potter Manager, Property Services Director, Organisational Services 13 January 2016

#56463840

COMMITTEE RECOMMENDATION GA16.0211.007 moved Cr Crichlow seconded Cr Owen-Jones 1 That Council note that Lots 2, 3 & 4 on the proposed plan at the attachment are

surplus to the City’s needs and as a consequence the lots be put to public tender and be disposed of.

2 That the net proceeds of sale of the subject lots once received be transferred to the Cultural Precinct Reserve via the next budget review.

CARRIED UNANIMOUSLY


ITEM 7 (Continued) PROPOSED SALE OF COUNCIL LOTS – HUTCHINSON STREET, BURLEIGH HEADS PN212765/856(P2)

Attachment 1


ITEM 8 OFFICE OF THE CHIEF EXECUTIVE OFFICER DECEMBER 2015 MONTHLY FINANCIAL REPORT FN334/375/17(P1) Refer Attachment 1: 2015-16 Special Purpose Statement of Income and Expenditure and

Special Purpose Statement of Financial Position – December 2015

1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT The Local Government Act 2009 and the Local Government Regulation 2012 require the Chief Executive Officer to present a financial report to Council on a monthly basis. The attached report is provided to Council in accordance with the above statutory requirements for December 2015. 4 PREVIOUS RESOLUTIONS

Not Applicable. 5 DISCUSSION Monthly financial reporting to Council is specified under section 204 of the Local Government Regulation 2012. It requires the Chief Executive Officer to present a financial report to Council on a monthly basis, stating the progress that has been made in relation to the local government’s budget. To aid in understanding the budget to actual position a Special Purpose Statement of Income and Expenditure and Special Purpose Statement of Financial Position are provided in Attachment 1. The purpose of each statement is summarised below:

2015-16 Special Purpose Statement of Income and Expenditure - The Statement of Income and Expenditure measures Council’s performance over the year and includes all sources of income and all operating expenses. A favourable net result indicates Council is increasing its community equity, i.e. net accumulated financial worth. Combined Statements of Income and Expenditure for Gold Coast Water, Waste Management, Tourist Parks and Other Council Activities are also provided in Attachment 1.

2015-16 Special Purpose Statement of Financial Position - The Statement of Financial Position sets out Council’s net accumulated financial worth at a point in time. It shows the assets that Council holds as well as liabilities or claims against these assets.

These special purpose financial statements are prepared for Council in satisfaction of the statutory requirement noted above. They are extracted directly from the financial system after each month is closed, so the amounts shown in the report reflect unaudited account balances. On rare occasions the report may reflect an adjusted amount, where material errors or omissions in the financial system are known and quantifiable. 2015-16 Basis of Reporting & Trend Analysis

The budget figures presented in this report as at 31 December 2015 are based on the 2015-16 September Budget Review position, as at the time of writing this report, the December Budget Review had not been adopted.


ITEM 8 (Continued) DECEMBER 2015 MONTHLY FINANCIAL REPORT FN334/375/17(P1)

As part of the monthly reporting process, Directorates are requested to identify significant budget trends. A trend is generally caused by an external influence generally beyond Council’s control (e.g. legislative, economic/financial markets, weather, etc.) and could potentially result in a variation to the level of service provided by Council. Budget variations are considered in the quarterly budget review process. The following trends were included in the December Budget Review as budget variations.

It should be noted that the above trends have been included in the December Budget Review.

2015-16 Year to Date Progress and Comparative Analysis

Progress against capital and operating budgets can be expressed in a series of high level indicators as provided below. These indicators show that revenue and expenditure are generally within expectations at this point in the financial year.

When reviewing the budget to actual position on the statements it should be noted that Council’s budget is prepared on an annual basis, whereas actual figures are presented on a progressive monthly basis. Pro rata comparisons may not be appropriate because actual results may not occur evenly throughout the year, for example when they are influenced by seasonality or when works / programs are ahead of or behind schedule, or progress at a rate which is not uniform throughout the year. Such timing variances do not indicate a need for budget adjustment. Examples of variances which should be addressed through budget adjustments are:

o planning variances where the intended program / outputs have changed;

o cost/efficiency variances, such as savings or over-expenditure, that will not be absorbed within the budget area

o price variances, where the price of inputs changed.

2015-16 Statement of Income and Expenditure - Major Budget Trends Budget Trend$m

( ) = FavourableGold Coast WaterDeveloper Contributions - development activity across the City continues to be very high. Year to date receipts total $39.6 million against the full year budget of $30.0 million. An adjustment of $20 million is included in the December 2015 Budget Review and the trends will continue to be monitored with the possibility of a further adjustment in the March 2016 Budget Review.

($20,000,000)

Organisational ServicesProperty Transfer Fee Revenue An increasing trend in search requests assumes there will be an increase in property sales and subsequently, an increase in the property transfer fee revenue from existing $1.3 million to adjusted $1.6 million.

($270,000)

Customer Contact Searches Revenue An increasing trend in search requests will increase the property searches fee revenue from existing $1.7 million to adjusted $2.4 million.

($650,375)

Planning & EnvironmentFees & Charges: High levels of development activity across the City are continuing, with revenue now almost $9.5 million above the initial budget projection of $19.9 million. High receipts are predominantly in the Plumbing & Drainage, Planning Assessment MCU, which continue to result in substantially higher workloads in these area. This situation is under notice and continues to be closely monitored, pending implementation of the new City Plan. Budget projections for revenue, together with submissions for additional resourcing of $1 million has been submitted as part of the December budget review.

($8,500,000)

Office of the Chief Executive Officer Treasury - this cash balance has remained higher than expected this financial year, increasing from $585m on 30 June to $771m on 26 November 2015. Cash is likely to drop a little leading up to the next rating period, but it seems the average monthly balance will remain high for the whole financial year. The revised estimated average monthly balance is around $700m and the average interest rate has been revised down from 3.0% to 2.9%, giving total project investment income of $20m. The cash balance has been boosted by higher than expected receipts for infrastructure charges ($45m has been received to the end of October 2015 against a full year budget of $39.2m, with these funds being held in reserve) and the retention of budget surpluses in reserves for Commonwealth Games, Water & Sewerage Infrastructure and for projects such as Light Rail Stage 2 and Cultural Precinct Stage 1. It is proposed to increase investment income by $4m in the December 2015 Budget Review.

($4,000,000)



The graphs presented below attempt to take seasonality of budget expenditure into account by comparing actual expenditure and revenue for the year to date to a Previous Year Pattern (shown in the graphs as “Previous”).

o The Previous Year Pattern percentage shows the percentage of last year’s total expenditure that had been spent at the corresponding time last year

o The Previous Year Pattern amount applies this percentage to the current year’s budget to estimate what this year’s expenditure would be if the current year’s budget were spent at the same rate as the previous year’s actual expenditure

Previous Year Pattern for revenue is a similar calculation based on revenue received at the corresponding time last year. Where material and classified as a trend, an explanation of the comparative movement is shown in the table “2015-16 Statement of Income and Expenditure – Major Budget Trends.” OPERATING EXPENDITURE

The graph provides a comparison of year to date actual operating expenditure to budget (including reprovisions) for December 2015.

Council has spent $404.7 million from an operating expense budget of $870.9 million in 2015-16. This represents 46.5% expended at 50.0% of the year elapsed.

By comparison 50.3% of the previous year’s actual expenditure had been spent at the end of December 2014.

CAPITAL EXPENDITURE

The capital expenditure graph shows a comparison of budget (plus commitments) to actual expenditure for capital works in 2015-16. At the end of December $104.4 million ($161.6 million inclusive of commitments) had been spent from a total capital budget of $363.9 million. This represents 28.7% (44.4% inclusive of commitments) of the total budget with 50.0% of the year elapsed. By comparison 23.4% of the capital budget had been spent at the end of December 2014. Commitments relate to both current year and reprovided projects from 2014-15.

Expense - Operating 2015 - 2016 Budget = $871M

46.5%

50.3%

- 200 400 600 800

Budget

Actual

Previous

Millions

Operating Expenditure - Budget v Actual (excl depreciation)

Expense - Capital 2015 - 2016 Budget = $364M

23.4%

0 100 200 300 400

Last Yr Budget

Last Yr Actual

Millions

2014-15 Capital Expenditure - Budget v Actual

28.7% 44.4%

0 100 200 300 400

Budget

Actual +Commitments

Millions

2015-16 Capital Expenditure - Budget v Actual + Commitments


ITEM 8 (Continued) DECEMBER 2015 MONTHLY FINANCIAL REPORT FN334/375/17(P1) OPERATING REVENUES

The graphs below present Council’s major sources of operating revenue. They show the actual year to date performance compared with total year budget and budget trend.

Fees and Charges

Fees and charges (excluding Private Works and Water and Waste Water Fees) were $53.9 million, which is 62.6% of the budget of $86.2 million as at the end of December (50.0% of year elapsed). By comparison, 48.1% of last year’s total fees and charges revenue had been achieved by the end of December. The Fees & Charges Income budget was reviewed in the December Budget Review due to higher than anticipated Development Application fees.

Rates and Utility Charges

The amount of rates and utility charges brought to account as at the end of December 2015 was $505.3 million, which is 49.2% of the total budget of $1,027.2 million. This amount comprises Gold Coast Water rates, which are recognised on a progressive monthly basis, and Council rates, which are recognised when billed. By comparison, 49.1% of last year’s total rates and utility charges revenue had been achieved by the end of December 2014.

Interest Income

Interest income at the end of December was $13.6 million, which is 71.0%, of the budget of $19.1 million. By comparison, 48.7% of last year’s total interest revenue had been received by the end of December. The Interest Income budget was reviewed in the December Budget Review due to higher than anticipated opening cash balances.

Revenue - Fees & Charges 2015 - 2016 Budget = $86M

62.6%

48.1%

0 20 40 60 80

Budget

Actual

Previous

Millions

Fees & Charges Income - Budget v Actual

Revenue - Rates and Utility Charges 2015 - 2016 Budget = $1027M

49.2%

49.1%

0 200 400 600 800 1,000

Budget

Actual

Previous

Millions

Rate Revenue - Budget v Actual

Revenue - Interest Income 2015 - 2016 Budget = $19M

71.0%

48.7%

0 10 20

Budget

Actual

Previous

Millions

Interest Income - Budget v Actual


ITEM 8 (Continued) DECEMBER 2015 MONTHLY FINANCIAL REPORT FN334/375/17(P1) 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Not Applicable. 7 COMMONWEALTH GAMES IMPACT Not Applicable. 8 FUNDING AND RESOURCING REQUIREMENTS Not Applicable. 9 RISK MANAGEMENT Not Applicable. 10 STATUTORY MATTERS The December 2015 Monthly Financial Report is presented to Council in accordance with the Local Government Act 2009 and the Local Government Regulation 2012. 11 COUNCIL POLICIES Not Applicable. 12 DELEGATIONS Not Applicable. 13 COORDINATION & CONSULTATION The December 2015 Monthly Financial Report has been developed in consultation with Directorate staff where applicable.


Directorate Is the Stakeholder Satisfied With Content of Report and Recommendations (Yes/No) (comment as appropriate)

John Blair, Manager Corporate Finance OCEO Yes

Marilyn Hildebrandt, Executive Coordinator Directorate Finances

OCEO Yes

Julie Brooks, Executive Coordinator Directorate Finances

OCEO Yes

Alex Rummery, Executive Coordinator Directorate Finances

OCEO Yes


ITEM 8 (Continued) DECEMBER 2015 MONTHLY FINANCIAL REPORT FN334/375/17(P1) 14 STAKEHOLDER IMPACTS Not Applicable. 15 TIMING Not Applicable. 16 CONCLUSION The presentation of the attached special purpose (unaudited) reports, 2015-16 Statement of Income and Expenditure and Statement of Financial Position, satisfies legislative financial reporting requirements for December 2015. The high level indicators show that revenue and expenditure are generally within expectations at this point in the financial year. 17 RECOMMENDATION It is recommended that Council resolves as follows: That Council note the Special Purpose 2015-16 Statement of Income and Expenditure and Statement of Financial Position as presented for December 2015. Author: Authorised by:

John Jackson Joe McCabe Corporate Management Accountant Chief Operating Officer 22 January 2015 COMMITTEE RECOMMENDATION GA16.0211.008 moved Cr Crichlow seconded Cr Tozer That Council note the Special Purpose 2015-16 Statement of Income and Expenditure and Statement of Financial Position as presented for December 2015.

CARRIED



Attachment 1

REVISED BUDGET

1

ACTUALREVISED BUDGET

1


1


1


1

ACTUAL

REVENUERATES & UTILITY CHARGES - - (71,466) (36,189) (452,965) (227,638) (502,730) (241,457) (1,027,160) (505,284) 6

RATES DISCOUNTS & REMISSIONS - - 0 0 0 0 45,716 22,447 45,716 22,447RATE LEVY CHARGES FOR THIRD PARTIES - - - - - - 0 0 0 0FEES AND CHARGES (16,772) (8,849) (8,845) (4,715) (4,063) (2,143) (60,733) (40,358) (90,414) (56,066)INTEREST REVENUE - - (133) (117) (10,783) (7,630) (8,195) (5,827) (19,110) (13,575) 6

GAIN/LOSS ON SALE OF ASSETS 0 0 0 0 5,000 0 (772) (1,091) 4,228 (1,091)CONTRIBUTION & DONATIONS REVENUE - - (348) (349) 4 (50,102) (39,563) 4 (117,299) (37,522) 4 (167,750) (77,434) 4

GRANTS & SUBSIDIES REVENUE - - 0 0 0 0 (42,300) (26,213) (42,300) (26,213)OTHER REVENUE (652) (361) 2 (43) (4) (42) (59) (18,234) (9,581) (18,970) (10,005)

TOTAL REVENUE (17,424) (9,210) (80,834) (41,375) (512,954) (277,034) (704,549) (339,601) (1,315,761) (667,220)

EXPENSESEMPLOYEE COSTS 637 335 8,114 3,790 44,268 20,286 280,381 145,102 333,399 169,514MATERIALS AND SERVICES 12,503 6,261 84,542 38,145 384,282 182,906 279,871 58,138 761,198 285,449DEPRECIATION & AMORTISATION 1,381 901 2,243 3,841 90,500 45,558 168,109 87,157 262,233 137,457FINANCE COSTS 0 5 3 0 0 0 0 47,175 24,508 47,175 24,514OTHER EXPENSES 4,388 2,017 1,023 488 13,909 1,963 118,829 41,155 138,149 45,623CAPITALISED EXPENSES (3,418) (940) (24,706) (5,379) (57,102) (19,113) (278,649) (60,906) (363,875) (86,338)

TOTAL EXPENSES 15,490 8,579 71,216 40,885 475,858 231,601 615,715 295,154 1,178,279 576,220

NET RESULT (1,934) (630) (9,618) (490) (37,096) (45,434) (88,834) (44,447) (137,483) (91,000)

1

2

3

4

5

6

This amount comprises Gold Coast Water rates, which are recognised on a progressive monthly basis, and Council rates, which are recognised when billed.

Revised Budget figures are based on latest adopted Budget Review (at date of Monthly Financial Report).

Interest revenue comprises earnings based off a higher than estimated cash balances.

Finance Costs includes credit card surcharges.

Other Revenue is mostly Canteen Revenue and "Revenue Default". The latter is the account to which revenue is posted before being allocated to the appropriate account by journal. It usually contains receipts for the last several days of the month.

Contributions and Donations Revenue comprises capital revenues from cash contributions and contributed assets. Contributed assets, which are generally the larger of the two items, are brought to account at the end of the financial year and have no effect on cash.

TOURIST PARKS

General explanations of the above line items can be found in Appendix 1

WASTE MANAGEMENT WATER OTHER ACTIVITIES CITY OF GOLD COAST

SPECIAL PURPOSE FINANCIAL STATEMENT (UNAUDITED)COMBINING STATEMENT OF INCOME AND EXPENDITURE FOR CITY OF GOLD COAST

FOR THE PERIOD ENDED 31 DECEMBER 2015

GOLD COAST GOLD COAST

(in thousands of dollars)

GOLD COAST



REVISED BUDGET ACTUAL

ASSETSCURRENT ASSETS

CASH ASSETS 498,597 676,880 1

CURRENT RECEIVABLES 121,694 134,142 2

INVENTORIES 2,456 2,462PREPAYMENTS 698 100CLEARING ACCOUNTS 0 164 3

623,446 813,748

NON CURRENT ASSETSOTHER FINANCIAL ASSETS 1,150 1,150 4

PROPERTY, PLANT AND EQUIPMENT 13,364,520 12,749,188ASSETS UNDER CONSTRUCTION 0 347,780 5

13,365,670 13,098,118

TOTAL ASSETS 13,989,116 13,911,866

LIABILITIESCURRENT LIABILITIES

CURRENT PAYABLES (62,724) (42,653)UNEARNED REVENUE (1,558) (1,624) 6

CURRENT EMPLOYEE BENEFITS (25,055) (21,079)CURRENT BORROWINGS (68,399) (61,181)CLEARING ACCOUNTS 0 27 3

(157,737) (126,510)

NON CURRENT LIABILITIESNON CURRENT EMPLOYEE BENEFITS (51,775) (55,673)NON CURRENT BORROWINGS (679,670) (676,449)

(731,445) (732,123)

TOTAL LIABILITIES (889,183) (858,633)NET COMMUNITY ASSETS 13,099,933 13,053,233

COMMUNITY EQUITYRETAINED CAPITAL 7,943,028 7,886,082RESERVES 5,156,905 5,167,152 7

TOTAL COMMUNITY EQUITY 13,099,933 13,053,233

1

2

3

4

5

6

7 Reserves includes Asset Revaluation Surplus and Cash Reserves .

(in thousands of dollars)

SPECIAL PURPOSE FINANCIAL STATEMENT (UNAUDITED)

The balance of Assets Under Construction is the accumulated expenditure on capital assets that have not yet been completed and added to Property, Plant and Equipment.

STATEMENT OF FINANCIAL POSITION FOR CITY OF GOLD COAST AS AT 31 DECEMBER 2015

Clearing Accounts comprise a number of accounts used to hold balances which are cleared periodically thoughout the year, including credit cards, payroll related items and debtor refunds.

Other Financial Assets are Council's investments in Gold Coast City Council Insurance Co Ltd and SEQ Regional Recreational Facilities Pty Ltd.

Current Receivables includes balances of outstanding invoices and accruals for water rates. It is usually highest after rate notices are issued (July, October, January and April).

Cash Assets include investments. The balance is usually highest after the close of the discount period for Rates (August and February) and Water (July, October, January and April). The balance also represents an increase in cash reserves attributable to Gold Coast Water and the Commonthwealth Games.

General explanations of line items can be found in Appendix 1.

Unearned Revenue includes water rates which have been billed but are treated as unearned and recognised as revenue progressively throughout the year. They will be reduced by year end.



APPENDIX 1 – Explanation of Financial Statement Items This appendix is a general explanation of Council’s revenues, costs, assets and liabilities to aid in understanding the budget to actual comparison in the monthly financial report.

STATEMENT OF INCOME AND EXPENDITURE BY SIGNIFICANT ACTIVITIES

REVENUE FROM ORDINARY ACTIVITIES

Rates and Utility Charges

Rate revenue for Council will mainly be recorded in July and January upon the issue of rate notices. Rate Revenue for Gold Coast Water is accounted for on an accrual basis throughout the year.

Rates Discount and Remissions

Discount is recorded as an expense at the time of payment and will mainly increase in July / August and January / February as rates are paid. However, remission is provided at the time of rate issue and will mainly increase in July and January.

Fees and Charges The pattern of revenue for fees and charges reflects a mixture of billing cycles and seasonal variations. For example, licensing and other charges are mainly billed in the first quarter of the financial year, whereas development assessment receipts may follow building and economic trends.

Gain/Loss on Sale A gain or loss on sale arises when Council assets are disposed of or sold at a value that varies from their book value.

Interest Revenue Interest earned varies according to the cash balances available for investment throughout the year.

Contributions and Donations

This line includes capital revenues from cash contributions and contributed assets. Contributed assets generally account for more than half of this budget which are a ‘book entry’ only and are brought to account through year-end processes.

Grants and Subsidies

Subsidies are mainly received for specific capital projects after stages of completion are reached.

Other Revenue Other revenue comprises miscellaneous relatively small amounts of revenue that don’t fit into the major categories. It includes Reimbursements and Recoveries, and Rental and Lease Revenue.

EXPENSES FROM ORDINARY ACTIVITIES

Employee Costs The total expenditure on labour, including remuneration and benefits, as well as other employee-related costs such as superannuation, payroll tax and workers compensation.

Materials and Services

Where totals are shown for individual business units, the expenditure on materials and services includes internal transactions.

Depreciation and Amortisation

Non-cash expense that estimates the use and ‘wear and tear’ of non-current assets such as plant, equipment and infrastructure.

Finance Costs Interest on loans, and bank charges.

Other Expenses Other expenses comprises miscellaneous expenses that don’t fit into the major categories. It includes contributions and donations, write offs, insurance premiums and external audit fees.



Capitalised Expenses

This line shows how much of the employee costs and materials and services are used in construction / purchase or major renewal of assets. The budget reflects the total expenditure identified in the Four Year Capital Works Program.

Net Result for Period

This line represents the budgeted increase in community equity to be retained at year end. This is used to fund new capital works and for loan redemption. Transfers to and from capital reserves are made as appropriate.

STATEMENT OF FINANCIAL POSITION

Current assets The cash and cash equivalents that are currently held. The budget shows the budgeted closing balance at the end of the financial year. The actual cash balance will vary significantly throughout the year as rate receipts, loans and major payments are processed. Cash investment is managed by Council’s Treasury Section.

Non Current Assets The budgeted value of property, plant and equipment and infrastructure assets, at year end, including land, roads, water and sewerage infrastructure after depreciation, renewals, new capital works, contributed assets and revaluations are accounted for.

Current Liabilities The present obligations, arising in the past, that Council has to make payments for within the next financial year. The budget shows the expected balance of these liabilities at the end of the financial year. This includes accounts payable and provisions for employee entitlements to annual and long service leave. It also includes the expected commitment to pay loan redemption in the next financial year.

Non-Current Liabilities

The expected balance, at year end, of provisions for employee entitlements and debt that is not required to be paid within the next financial year.

Community Equity Retained equity includes City Capital and any Surplus / Deficit. Reserves include cash-backed reserves representing infrastructure charges and asset revaluation reserves which record the valuation adjustments to Council’s existing non-current assets.


ITEM 9 OFFICE OF THE CHIEF EXECUTIVE OFFICER GOVERNANCE ADMINISTRATION AND FINANCE COMMITTEE ACTION LIST AND FORWARD PLANNING SCHEDULE LG115/1215/01/2016(P1) Item Action Officer &/or

Branch Action/Previous Resolution

(713) Governance, Administration and Finance Committee 3 March 2016

Broadbeach Alliance Ltd – Bi-annual Performance Review

Executive Services Includes Presentation

Surfers Paradise Alliance Ltd – Bi-annual Performance Review


Connecting Southern Gold Coast Ltd – Bi-annual Performance Review


Gold Coast Arts Centre Pty Ltd – Bi-annual Performance Review


Addition to the 2015-16 Sole and Specialised Supplier List

Procurement

LG314/690/15/018 – Cleaning of Waterways And Boat Ramps

Procurement

Contract No. LG314/411/16/003 - Citywide Managed Hygiene Services

Procurement

Contract No. LG314/765/15/002 – Register of Pre-Qualified Suppliers for Design and Installation Services for Intelligent Transport Systems Infrastructure

Procurement

Contract No. LG314/254/15/078 Modernisation of Lifts at Waterside and Karp Court Buildings

Procurement

Contract No. LG314/690/15/022 Ground Maintenance Services for Cemeteries

Procurement

Design Supply and Installation of Heating Ventilation and Airconditioning HVAC Plant and Equipment

Procurement

Provision of Street Sweeping Services Procurement

Reactive Maintenance for Irrigation Services Procurement

Landfill Gas Management Works at Suntown Procurement Confidential Report

RECOMMENDATION

It is recommended that Council resolves as follows:

That the list of proposed Agenda Items for the Governance, Administration and Finance Committee be noted.

Authorised by:

Joe McCabe Chief Operating Officer

TRACKS REF: # 44941331

COMMITTEE RECOMMENDATION GA16.0211.009 moved Cr Owen-Jones seconded Cr Caldwell

That the list of proposed Agenda Items for the Governance, Administration and Finance Committee be noted, subject to the reports of external entities not including presentations.

CARRIED


ITEM 10 OFFICE OF THE CHIEF EXECUTIVE OFFICER VALUE FOR MONEY PLAN PROGRAM 2016 LG113/641/04/04(P5) Attachment A – Value for Money Acquittal for 2015 Attachment B – Value for Money Schedule for 2016 Attachment C - Better Councils, Better Communities Flyer Attachment D - City of Gold Coast, Value for Money Framework 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT To provide an acquittal against the Value for Money Plan for 2015 and outline the 2016 Value for Money Plan. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION 5.1 Background Council has had an annual Value for Money Plan since 04/05. The format of the Value for Money Plan is based on the AT Kearney methodology and incorporates the following categories:

Service Delivery Strategy Governance and Structure Delivery Model Revenue Assets Procurement

The Plan defines Value for Money as: Cost Savings

Bankable financial benefits - those which result in actual operating or capital budget reductions

Efficiency gains – for example, a task taking less time to complete resulting in an increased service level

Avoided costs – ensuring that a projected future increase in costs for a particular activity does not actually occur

Observable Benefits

Improved customer service – for example, improved correspondence response time

Improved business outcomes (environmental, social, economic) – for example, greater patronage of the Arts Centre per dollar of subsidy

Mitigation of risk – for example, greater insurance cover for the same cost of premium


ITEM 10 (Continued) VALUE FOR MONEY PLAN PROGRAM 2016 LG113/641/04/04(P5) 5.2 Key results for 2015 (Refer Attachment A) The following is a brief summary of some actions progressed or final results achieved in 2015, for each of the six categories. These are more fully outlined in Attachment A: 1) Service Strategy

Council ceased both school and public immunisation clinic programs from 31

December 2015, achieving a saving of $56,166 in 2015 with an ongoing annual saving of $115,000.

2) Governance & Structure

The review of the former Engineering Services Directorate and implementation of the

new City Infrastructure Directorate structure delivered recurrent savings totalling approximately $1.6 million.

3) Delivery Model

Tenders relating to the ICT Service Transformation Program which entails a major outsourcing model were awarded.

Twenty-one new online Smartforms were released in 2015 including Direct Debit requests, Dog Registration, Change of Details, Community Centre Booking Requests and Online Payments.

Self-service rates and water billing information was expanded to allow customers to

access their up to date account balances through mobile devices. 4) Revenue

Reduction in end of year debtor balances (True overdue) to $4.45 million as at 31/12/15.

5) Assets

$1.5 million from the sale of surplus land assets was achieved.

Energy Management Program –

- Electricity category management (daily operational activity) has resulted in savings of $1,127,225.

- Electricity consumption mitigation initiatives in Administration buildings have yielded a cost avoidance of $65,497.

6) Procurement

Gross Procurement savings of $32.98 million were achieved.

The Procurement Review was commenced.


ITEM 10 (Continued) VALUE FOR MONEY PLAN PROGRAM 2016 LG113/641/04/04(P5) 5.3 Proposed Key Areas for Action for 2016 (Refer Attachment B) The following are examples of actions to be progressed in 2016:

1) ICT Service Transformation Program implementation.

2) Water Efficiency (The next step) – The establishment of a “Network Monitoring” team within Gold Coast Water which is anticipated to bring substantial benefits in targeted reduction of both leakage losses and inflow and infiltration. Water leakage losses currently cost approximately $16 million in bulk water costs per annum. It is estimated that a targeted leakage management program could achieve savings of approximately $5.5 million over 10 years.

3) Commonwealth Games - Continue to explore commercial advertising.

4) Expansion of GPS technology in vehicles – Continued roll out and instillation of GPS devices in the City motorised vehicles. Instillation due for completion in July 2016.

5) Sourcing Strategy Review – The merging of Gold Coast Water and Waste and Resources Management will create an opportunity for potential changes to business planning and service delivery models. A significant review of the sourcing strategy for Water and Waste functions is being conducted.

This review will be conducted over the next eight months, with recommendations arising from the review to be brought to the new Council in late 2016.

6) Ongoing initiatives relating to the Energy Management Program.

7) Smart Water Network - Investigations will be undertaken into the potential implementation of data loggers and communication modems onto existing water meters.

8) Development and implementation of the Sustainable Pavement Management Plan (SPMP) ensuring sustainable and economically viable management of the City’s road pavement assets.

9) Complete the review of Council’s procurement model.

10) Continued rollout of land asset disposal. 5.4 LGAQ – Better Councils, Better Communities Project In late 2014, The Local Government Association of Queensland (LGAQ) launched a productivity and performance project named Better Councils Better Communities (Refer Attachment C). The project aims to encourage Queensland councils to provide value for money and better connect with their communities by using a range of data to benchmark their performance against other councils and the local government sector as a whole. One facet of the project was for councils to share their stories of improved performance with the community via a case study. A total of 77 Queensland councils submitted case studies. The City of Gold Coast’s provided one on our annual Value for Money Framework (Refer Attachment D).


ITEM 10 (Continued) VALUE FOR MONEY PLAN PROGRAM 2016 LG113/641/04/04(P5) 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Manage the short and long-term financial sustainability of the city through prudent financial management and ensuring value for money. 7 COMMONWEALTH GAMES IMPACT

Not Applicable. 8 FUNDING AND RESOURCING REQUIREMENTS

Not Applicable. 9 RISK MANAGEMENT

Not Applicable. 10 STATUTORY MATTERS

Not Applicable. 11 COUNCIL POLICIES

Not Applicable. 12 DELEGATIONS

Not Applicable. 13 COORDINATION & CONSULTATION

Various officers have been consulted to provide input into the report. 14 STAKEHOLDER IMPACTS

Not Applicable.

15 TIMING

Not Applicable. 16 CONCLUSION The City program to deliver better value for money outcomes is outlined in the report. The program includes initiatives providing value for money via customer service improvements, business efficiency, risk mitigation and cost savings. During 2015 a wide range of value for money initiatives were progressed. The following are some 2015 results:

A review of the structure and operating model of the Engineering Services Directorate (now City Infrastructure Directorate) delivered recent savings totalling $1.6 million.

A reduction in outstanding debts $4.45 million was realised.

Procurement savings of $32.98 million.


ITEM 10 (Continued) VALUE FOR MONEY PLAN PROGRAM 2016 LG113/641/04/04(P5)

Sale of land assets delivered $1.5 million. Ceased both school and public immunisation clinics.

Reduction in energy consumption has achieved cost avoidance of $1.26 million in

2015.

Crass cutting, landscape and weed control saving of $907,000 achieved.

Electricity category management has resulted in $1.7 million in savings. The 2016 program will encompass, inter alia, the following:

• ICT Service Transformation Program implementation

• Commercial Advertising on Council land

• Digital Assets – monetisation of Council’s key digital assets

• Water Efficiency (the next step) – Establishment of a “Network Monitoring” team

• Continued roll out and instillation of GPS devices in the City motorised vehicles

• A significant review of the sourcing strategy for the city water and waste functions

being conducted by Price Waterhouse Coopers

• Review of Council’s Procurement model

• Electricity Management Plan implementation

17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That the Value for Money Program acquittal be noted.

2 That the Value for Money Plan for 2016 be noted. Author Authorised by:

Ross Giudice Dale Dickson Executive Officer Chief Executive Officer 3 February 2016

TRACKS REF: 52876636 COMMITTEE RECOMMENDATION GA16.0211.010 moved Cr Owen-Jones seconded Cr Caldwell 1 That the Value for Money Program acquittal be noted.

2 That the Value for Money Plan for 2016 be noted.

CARRIED

Acquittal for 2015

Attachment A

712th Council Meeting 16 February 2016 Governance Administration & Finance Committee Meeting 11 February 2016

69 Adopted Report

iSPOT:#53466050 v7 - VALUE FOR MONEY ACQUITTAL 2015 Page 2 of 27

Table of Contents 1. Service Strategy .................................................................................................................................................................................................................................... 4

1.1. Immunisation ............................................................................................................................................................................................................................. 4

2. Governance ........................................................................................................................................................................................................................................... 5

2.1. City Infrastructure ...................................................................................................................................................................................................................... 5

2.2. Executive Contracts ................................................................................................................................................................................................................... 6

3. Service Delivery Model ........................................................................................................................................................................................................................ 7

3.1. ICT Service Transformation program ........................................................................................................................................................................................ 7

3.2 Grass Cutting…………………………………………………………………………………………………………………………………………………………………. 8

3.3. Modern Award .................................................................................................................................................................................................................... ……8

3.4. Project COBI .............................................................................................................................................................................................................................. 9

3.5. Scientific Services Review ....................................................................................................................................................................................................... 11

4. Revenue ............................................................................................................................................................................................................................................... 12

4.1. Whole of City Parking .............................................................................................................................................................................................................. 12

4.2. Southport and Nerang Employee Parking Arrangements ....................................................................................................................................................... 12

4.3. Debtor Management ................................................................................................................................................................................................................ 13

4.4. Advertising ............................................................................................................................................................................................................................... 13

4.5. Waste Management ................................................................................................................................................................................................................. 14

4.6. Advertising ............................................................................................................................................................................................................................... 15

4.7. Commonwealth Games ........................................................................................................................................................................................................... 15

4.8. Recycled Water ....................................................................................................................................................................................................................... 16

5. Assets .................................................................................................................................................................................................................................................. 17

5.1. Staff Accommodation ............................................................................................................................................................................................................... 17

5.2. Land Assets ............................................................................................................................................................................................................................. 18

5.3. GPS Fleet Optimisation Audit .................................................................................................................................................................................................. 19

5.4. Electricity Management ........................................................................................................................................................................................................... 20

5.5. Recycled Water ....................................................................................................................................................................................................................... 21

5.6. Water Efficiency ....................................................................................................................................................................................................................... 22

6. Procurement ........................................................................................................................................................................................................................................ 25


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6.1. General .................................................................................................................................................................................................................................... 25

6.2. Procurement Review ............................................................................................................................................................................................................... 26


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1. Service Strategy What services will deliver the City Vision

1. Service Strategy Activity Status: Activity Progress as at 31 December 2015

Result: at 31 December 2015

1.1. Immunisation A further report addressing both school based immunisation and public vaccination program.

Initiative Closed

Highlights to Date:

The City’s school based immunisation and public vaccination programs ceased on 31 December 2015 (G15.0402.013).

Queensland Health’s Gold Coast Public Health Unit has taken over the provision of the above immunisation services from 1 January 2016.

Council has donated some of its immunisation equipment and provided the use of some community venues free of charge to assist GCPHU in the provision of the 2016 immunisation programs.

Bankable Financial Savings

Recurrent savings include labour and vehicle costs:

$56,166 for 2015-16 $115,000 approximately per annum

ongoing


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2. Governance Optimally controlled and organised

2. Governance Activity Status: Activity Progress as at

31 December 2015 Result: as at 31 December 2015

2.1. City Infrastructure

Directorate Review and implementation to determine whether current structure and operating model are appropriate to meet contemporary expectations of infrastructure planning, delivery and management, and service delivery.

Initiative Closed

The project closed on 30 June 2015

Highlights to Date:

Report, including recommendations, presented and adopted by Council on 17 February 2015 (G15.0217.025), with the new City Infrastructure directorate ‘go-live’ as at 1 May.


$1.66 million approximately.

The savings are a mix of recurrent savings as:

$895,000 OPEX $774,000 CAPEX

Efficiency Gains

This initiative improved business management processes, integrated planning effort and governance mechanisms, resulting in increased certainty and completion of programmed capital works.


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2. Governance Activity Status: Activity Progress as at


2.2. Executive Contracts

Review of Executive Contract Terms.

Highlights to Date:

For the standard executive contract of employment, sick leave entitlement was reduced from 15 to 10 days per annum.

Further, all new employees to Council will accrue 8.66 weeks of long service leave after 10 years of service (as opposed to 13 weeks of leave).

Avoided Costs (2015-16)

The annual increase for each new employee or contract was reduced from 2.5% to 2%


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3. Service Delivery Model Efficient delivery of services

3. Service Delivery Model Activity Status: Activity Progress as at


3.1. ICT Service Transformation program

1. Implementation of Managed Services.

2. Detailed design of the Local Government Platform (LGP).

Initiative Continuing in 2016

Highlights to Date:

The outcome of the evaluation and negotiation process was presented to and approved by Council. Infor Global Solutions was awarded the LGP

contract Digital Sense Holdings was awarded the Data

Centre Relocation contract and Fujitsu was awarded the Managed Services

contract

Design and transition activities have commenced for all contracts and will continue through 2015/16 with LGP continuing through 2016/17.

The program will:

deliver $28M in savings over 12 years

bring 2 international companies to the City

transform our customer experience revolutionise the way our workforce

delivers services mitigate various corporate risks,

e.g. legacy applications


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3.2. Grass Cutting

Review of existing contracts.

Initiative Closed

Highlights to Date:

Continuous improvements activities are ongoing e.g.; trial of an alternate delivery strategy to achieve further savings in one area with potential to expand model to all zones in future if successful

One to one contractor to supervisor ratio generating superior management and clarity of direction to contractors

Grass weed and landscape services now provided by the one contractor as opposed to multiple


The new contracts started in the 2nd quarter of this financial year. The following recurrent savings were achieved:

$750k per annum mowing $157k per annum landscape and

weed control

3.3. Modern Award

Certified Agreement 2015.


Highlights to Date:

The Queensland Industrial Relations Commission’s Full Bench decision to maintain one local government award has been appealed by the Qld Government and various unions to the President of the QIRC.

A decision is expected to be handed down within the month.

Due to the ongoing uncertainty, a 12 month extension of the current Certified Agreement was approved in 2015.

Initiative remains on hold until a decision on the Appeal.


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3.4. Project COBI

(Customer Orientated Business Improvement)

Ongoing transformation of the customer experience by improving end to end processes and opening new channels to allow customers to interact with Council electronically.

Initiative Closed

COBI Steering Group officially closed the project as of 30/06/15.

Highlights to Date:

As a result of the COBI program finishing the Customer Contact Branch focused on a new initiative titled “Customer Contact Improvement Program”. This is a program of work with the following agreed outcomes:

reducing customer effort channel shift delivering efficiency for our

ratepayers consistency and accuracy of service across all

channels City wide customer-centric focus delivering effective solutions to our customers

through continuous improvement engaged and flexible workforce

5 Key Areas are:

1. Customer Service Centre operating hours/operational efficiencies

Improved Customer Service

Although closed in mid July 15, benefits from a customer perspective are ongoing as a result of 14-15 activity.

1. Customer Service Centre Since December 2015 an additional

30 existing employees now leverage off the latest Telephony platform technology and respond to customers via the phone queue.

Standard opening hours have been introduced (8.15am to 4.30pm) across the nine centres.


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2. Website improvements

3. Media Centre

4. Online Growth

5. Customer Satisfaction

2. Website improvements The most popular pages are more

easily accessible, with a notable increase in visits to the Parks and recreation landing pages

New content pages have already received a high number of page views

There has been a decline in visits to the Payments page.

3. Media Centre This site has received

approximately 20,000 page views since its launch.

4. Online Growth About 12,000 reports have been

processed via the app since its launch over two years ago which has been downloaded more than 7000 times

Online form usage continued to grow with online payment arrangement functionality remaining a popular channel of choice.

5. Customer Satisfaction Approximately 90% of Customers

that participated in the after call survey rated their satisfaction with the consultant they spoke to as either "Excellent" / Good”


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3.5. Scientific Services Review

Review the delivery model of Scientific Services, GCW.


Highlights to Date:

The lab has a mandate to become contestable in the market.

New test introduced to the market in the period Jun – Sep 2015:

Five Inductively Coupled Plasma Mass Spectrometry (ICP) elements and

Total Organic Carbon (TOC). New tests were developed for some customers,

e.g., fuel fingerprinting.

Bankable Financial Savings (Revenue)

New/improved services supported the following growth in revenue depicted by calendar year:

Sulfur, arsenic, silicon, and selenium Cost of testing in 2014 = $9k.

(External testing) Actual revenue = $4,686 (Internal testing 2nd half of 2015). Total Organic Carbon Coast of testing 2014 = $16k (External testing) Actual revenue = $1,122 (Internal testing from Nov 2015). This is a new test with no

accreditation received yet From Jul - Dec revenue $7k.

Improved Customer Service/ Improved Business Outcomes

Working with Trade Waste to identify customers that require testing of discharges.


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4. Revenue What to fairly charge and how best to collect it

4. Revenue Activity Status: Activity Progress as at 31 December 2015

Result: as at 31 December 2015

4.1. Whole of City Parking

City Parking Plan - review of whole of City parking to determine most appropriate management regime for on and off street parking in key centres across the city.


Highlights to Date:

This Activity is in progress including pilots for local plans on responsive pricing that have now commenced.

The delayed launch will mean benefits will not be able to be assessed and measured until mid to late 2016. Due to the nature of the activity and need to consider seasonal trend data, the benefits will be reviewed at 6 month and 12 month periods from the launch date.

Initiative in Progress

4.2. Bundall, Southport and Nerang Employee Parking Arrangements

Review of car parking arrangements for employees based at Nerang and Southport.

Initiative Closed

This initiative is now complete and will not be continuing in 2016

Highlights to Date:

The review of car parking arrangements was completed in 2015, with Council deciding that no charge would be made for staff parking at Southport, and Nerang.

A review of parking charges for staff in the Bundall/Evandale precinct resulted in reduced charges being implemented.

The lower charges need to be retained despite the FBT liability no longer existing due to the requirement to manage parking demand in the precinct – part of the solution being the ongoing Gold Coast Turf Club Park and Ride free shuttle bus service for employees.


The parking arrangements continue to provide a small surplus - $53,000 to 31 December.

The surplus for the 2015-16 financial year ($106,000) will be allocated towards improved employee facilities (e.g. fit-out of the new gym at Karp Court).


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4.3. Debtor Management

Continuing focus on reducing rate and water debt.


Highlights to Date:

The initiatives already introduced continue to show benefits, with a further reduction in the debtor balance as at 31 December 2015.

Further analysis is being undertaken on the logistics of introducing water restriction devices as a debt recovery mechanism for unpaid water charges.


The outstanding debtor balance has been further reduced in 2015 by $4.45 million.

Comparison of Outstanding Balances at 31 December

Year Rates Water Total Arrears%

14/15 $29,754,707 $26,218,873 $55,973,580 8.50%

15/16 $30,042,142 $21,478,824 $51,520,966 8.34%

4.4. Advertising

Commercial advertising on Council land, buildings and facilities.


Highlights to Date:

Following approval by Council for limited advertising in a number of areas (some billboards, litterbins and at the Bruce Bishop car park). an expression of Interest process has been conducted.

A total of 8 expressions of interest have been received, across all of the advertising opportunities.

The EOI’s are being evaluated by a panel, with recommendations to be made in early 2016.

Initiative in Progress


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4.5. Waste Management

Waste Management Business Efficiency Project.


Highlights to Date:

Successful launch of online application forms to enable credit card payment for certain waste and recycling services.

Online application forms for waste and recycling services are being utilised extensively with over 1000 received in the first three weeks of January alone.

The unrated property review has successfully rated a further 297 customers in the second quarter. Every property within the waste collection area is required to pay a waste utility charge.

Active measures to expand the commercial customer base are proceeding with a total of 71 new customers in the second quarter.

A process for selling crushed concrete has been established. Test results and product classifications will soon be received from City Infrastructure. This will enable active marketing of this product and potential use internally leading to reduced expenditure on materials.

Improved Customer Service The online application is

progressively reducing the number of additional rates notices required to be issued.

Bankable Financial Savings (Revenue) The unrated property review

results in properties paying the annual waste utility charge of $260.30. An estimated $240,000 in additional revenue will be achieved over the next financial year.

The minimum additional revenue resulting from these commercial services in the past quarter is approximately $20,000.


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4.6. Advertising

Monetisation of Digital Assets.

Highlights to Date:

Ongoing discussions with the Bureau of Meteorology (BOM) (an agency used as a case study in the research for the Monetisation of Council Website pilot) have identified advancements in the area of programmatic advertising and an opportunity to partner with BOM in a ‘whole of government’ framework for monetisation.

Initiative in progress

4.7. Commonwealth Games

Council resolution to explore commercial advertising for its assets for the purposes of offsetting the financial contribution to the games.


Highlights to Date:

GOLDOC’s Sponsorship sales team is canvassing opportunities to include City of Gold Coast assets in GC2018 sponsorship proposals where appropriate.

Potential opportunities for GC2018 sponsors and the Health and Knowledge precinct have also been discussed in 2015 and will be further developed in 2016.

The bundling of CGC’s future requirements in its light vehicle fleet has been further developed between GOLDOC and CGC and has been included in discussions with potential sponsors. It is hoped that GOLDOC will be able to finalise its discussions in this category in the first 1/4 of 2016.



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4.8. Recycled Water

Continuation of recycled water reuse and the identification of future opportunities of mutual benefit to potential customers and the City.


Highlights to Date:

Working to expand reuse in the northern cane land. Looking at feasibility of supplying recycled water to trial

blueberry farms. Progressing provision of recycled water to the Parklands

regional park. When Parklands regional park is connected it is expected to save 22ML/year of potable water, which is approx. $84,000 per annum.

The registration of interest remains open for application and is available on the City’s website.



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5. Assets Ensure effective use of assets and alignment with vision

5. Assets Activity Status: Activity Progress as at 31 December 2015


5.1. Staff Accommodation

Continuing consolidation of staff at Waterside, Karp Court and Nerang Administration Centres.

Initiative Closed

Highlights to Date:

The planned relocation of Council staff from the Surfers Paradise Administration Centre was completed in December 2015.

The Customer service counter opened on 4 January.


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5.2. Land Assets

Review land assets to be immediately endorsed for future disposal.


Land asset sales will continue in 2016

Highlights to Date:

Property status:

1. Thornton Street Surfers Paradise Contracted (conditional) – to settle

September 2016 pending issue of MCU

2. Pimpama Awaits tender in 2017

3. Carrara

Site under contract to settle March 2016 Site tender finalised and sale contract being

negotiated

4. Burleigh Heads ROL approved – tender March

5. Balance Disposal Sites Await adoption of new Planning Scheme

after which disposal processes will commence with progressive revenues 2016/17

Current contracts to be finalised are estimated at $3,550,000.



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5.3. GPS Fleet Optimisation Audit

Expansion of GPS technology.


Highlights to Date:

The implementation is a concurrent three-phased implementation consisting of installation, training and process establishment. The implementation is anticipated to be completed by 31 July 2016.

As at 31 December, two directorates (Gold Coast Water and Community Services) had all vehicles installed with GPS tracking accounting for a third of all scheduled installations.


As installation is scheduled for completion in July 2016, it is anticipated that benefits will begin to be realised in late 2016.


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5.4. Electricity Management

Ongoing initiatives relating to the City’s expenditure on energy.


Highlights to Date:

1. Implementation of initiatives to reduce energy consumption in Council Administration buildings.

1. Waterside East & West 2. Nerang 3. Karp Court

2. Scrutiny of billing and access by Asset Custodian

of their Assets in SAP has resulted in better monitoring of accounts and avoidance of ongoing unidentified errors.

3. Reconciliation of accounts due to bill errors, tariff changes and transfer corrections reimbursement by the previous contractor.

4. The Gold Coast Transit Centre change over to

LED lighting produces a recurrent saving. 5. Network cost review resulting in a reduction to

network charges for streetlights.


1. OS Admin buildings achieved: an annual reduction in consumption

of 277312kWh (3.9% reduction) and a cost avoidance of

2015-16 as at 31.12.15 = $47,697 per annum.

Installation of energy efficient hand dryers in Waterside East and West in place of paper towels. Estimated net operating saving of $17,800 per annum.

2. Continued surveillance of accounts by the Energy Management Officer and Asset Custodians has resulted in: savings of $11,875/month (annual

cost savings of $142,500) per annum ongoing.

3. Reimbursement in a single refund of $275,955.

4. The implementation of LED lighting is on target to achieve a: 20% cost avoidance (produces the

saving of $22,500 per annum) and a failure rate of <1%. 5. The estimated cost savings on network charges of $1,550,000 annually is on target to be achieved with monthly savings in the last 6 months being average. $130,000.


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6. Power Factor Correction Device construction at all large sites commissioning to be completed by April 2016.

6. Power Factor Correction savings are estimated at a combined $20,000 / month and will be confirmed post installation for each large site in May 2016.

5.5. Recycled Water

Closure of the Pimpama Coomera Class A+ Recycled Water Scheme – Transition Plan implementation.

Highlights to Date:

All activities and tasks are on track to achieve suspension of the Pimpama Coomera Class A+ Recycled Water Scheme (supply switch) by December 2016.

Savings to be realised when the scheme has transitioned to potable supply.


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5.6. Water Efficiency

Further activities to drive water efficiency with regards to City assets.


Highlights to Date:

Highlights of the wider water efficiency and unaccounted for water use program over the second half of 2015 include:

Identification of a cross connection between the domestic service and unmetered fire service at Allamanda Private Hospital.

Identification through field investigations of 12 fire services previously not captured in the water billing system. Capture of these connections also allows effective asset management, and mitigation of water theft and illegal use risk.

Identification of unmetered service to a marina.

Savings in consumption charges still to be determined once a daily usage pattern has been established.

Identification of 47 meters servicing Council parks, beach showers, toilet blocks and community centres.


$250,000 approx per annum in water

consumption revenue from Allamanda Private Hospital cross connection

$18,000 approx per annum in service

charge revenue by the capture of fire services identified

$1,500 per annum in lost service charge revenue from identification of unmetered service to marina.

Efficiency Gains

Identification of Council meters will assist in reducing unaccounted water and will provide water consumption data to the asset owner for improved efficiencies and early concealed leak detection.


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Seqwater Demand Validation Study has continued through the second half of 2015, with the project continuing for approximately another 18 month period. This has provided a trial of meter loggers and cloud based data storage for monitoring of residential customers water consumption and robustness and reliability of available logging equipment. Current and evolving smart water metering systems and solutions typically include logging functions and data exchange processes via cloud-based services. As part of the City’s metering direction, it is likely that these technologies will be applied more widely in the City to gain the benefits of this technology for both customers and the City.

Minimum night flow alarms have identified 3 concealed leaks located at volunteer properties.

Two additional loggers have been installed at

commercial properties as a separate trial for meters that are difficult to access and monitor water consumption. Customer to be provided their own login.

Assessment of the data for the first twelve

months will be completed in 2015/16 with a report to follow.

Trialling these technologies allows the City to test the capabilities of them in a local context on a smaller scale. This can confirm the benefits of a roll-out of the technology before the City commits to a larger program and associated costs.


$3,000 per quarter approx in concealed leak remissions applications from identification of leaks.

Improved Customer Service

Customer able to monitor their own water consumption where previously only limited access to their water meter was available.

Provision of previously unavailable real time water consumption data to assist in future planning.


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Automatic Meter Reading (AMR) Audits - Savings

Further Audits of AMR systems have been completed. A database of AMR systems has now been

created capturing the type of system and system componentry to increase repair efficiencies.

The retail section of the Hilton complex has been fully repaired and is operational.

A package of 12 UTL/Utility systems has been scoped and ready to go to market pending the outcome of the sub-meter batch investigation.

Initiatives Under Development:

AMR Specifications Following examination of the available AMR systems and specifications research, a detailed project brief was prepared and approved for a pilot study which aims to resolve current impediments to adoption of improved AMR technology, and investigate equipment, installation and commissioning, operational and maintenance requirements, billing and data reliability and opportunities for improved customer service. The project will be delivered over financial years 2016-17 and 2017-18.

Efficiency Gains

An asset register for AMR systems has been developed allowing improved asset data and repair works on the same types of systems to be packaged together to reduce maintenance costs.


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6. Procurement How best to leverage and negotiate with suppliers

6. Procurement Activity Status: Activity Progress as at 31 December 2015


6.1. General

Continuous Improvement.


Highlights to Date:

For 2015-16 a budget underpinning Procurement Savings Target was set at $4.5M

Main areas of savings:

$13.4M for GCW going into the GCW Infrastructure Reserve

$4.6M going against the budget underpinning. $2.7M for Waste Services going to the Waste

Services Infrastructure Reserve


Procurement savings achieved are

$24.9M YTD for the financial year 1 Jul 2015 to 31 Dec 2015.

$32.98M for the full calendar year 01 Jan – 31 Dec 2015.

Procurement Savings Targets

Year Target Actual Saving

10-11 $ 4,447,408 $ 4,953,324

11-12 $ 7,385,798 $ 13,065,559

12-13 $ 8,222,719 $ 12,417,364

13-14 $ 6,551,240 $ 15,876,330

14-15 $ 6,500,000 $ 16,770,779

15-16 $ 4,500,000 $ 24,900,000

(to date)


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6. Procurement Activity Status: Activity Progress as at 31 December 2015


6.2. Procurement Review

Undertake a review of Council’s procurement model.


Highlights to Date:

The Strategic Review of Procurement at the City of Gold Coast is now underway.

Infosys Portland has been appointed as the Procurement Consultants to undertake the review for Council.

A Project Management Plan and the Project Management Group (PMG) have been established.

Infosys Portland have already held initial meetings with Councillors, and meetings with management and key staff are scheduled for January 2016.

High level indicative timing of phases (at this point in time) are:

Phase 1 Current State Analysis: January to February 2016 Phase 2 Improvement Options Development April to May 2016



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iSPOT:#52871296 v5 - VALUE FOR MONEY SCHEDULE 2016 Page 1 of 12

Schedule for 2016

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Table of Contents Page

1. Strategy…………………………………………………………………………………………………………………………………………………..3

2. Governance…………………………………………………………………………………………………………………………………………….. 4 1. Immediate Injury Management (Return to Work)………………………………………………………………………………………………………………………….4

3. Service Delivery Model………………………………………………………………………………………………………………………………. 5 1. ICT Managed Services………………………………………………………………………………………………………………………………………………………. 5

2. Local Government Platform……………………………………………………………………………………………………………………………………………….... 5

3. Support Services Review……………………………………………………………………………………………………………………………………………….…… 5

4. Grass Cutting (New Delivery Model – Cemeteries)………………………………………………………………………………………………………………….…... 5

5. Grass Cutting (Review of existing contracts)…………………………………………………………………………………………………………………………..…. 6

6. Modern Award………………………………………………………………………………………………………………………………………………………….…….. 6

7. Scientific Services Review...………………………………………………………………………………………………………………………………………….….…. 6

8. Sourcing Strategy Review……………………………………………………………………………………………………………………………………………….….. 7

4. Revenue………………………………………………………………………………………………………………………………………………… 8 1. Whole of City Parking…………………………………………………………………………………………………………………………………………………….….. 8

2. Advertising……………………………………………………………………………………………………………………………………………………………….….... 8

3. Waste Management.…………………………………………………...…………………………………………………………………………………………............... 8

4. Commonwealth Games………………………………………………………………………………………………………………………………………………….…...8

5. Assets…………………………………………………………………………………………………………………………………………………… 9 1. Land Assets……………………………………………………………………………………………………………………………………………………………………9

2. GPS Fleet Optimisation Audit...……………………………………………………………………………………………………………………………………….….....9

3. Electricity Management...…………………………………………………………………………………………………………...……………………………………..... 9

4. Recycled Water………………………………………………………………………………………………………………………………………………………….….. 10

5. Water Efficiency…………………………………………………………………………...………………………………………………………………………………... 10

6. Sustainable Pavement Management Plan (SPMP)……………………………………………………………………………………………………………………...10

6. Procurement……………………………………………………………………………………………………………………………………………11 1. Procurement Review…………………………………………………………………………………………………………………………………………………….…..11


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1. Service Strategy What services will deliver the City Vision

Service Strategy Activity Description

Nil


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2. Governance Optimally controlled and organised

Governance & Structure

Activity Description

1. Immediate Injury Management (Return to Work)

Increased focus on Immediate Injury Management to result in earlier return to work of workers

Program will commence in February 2016.

Targeted bankable savings within a 3 year period:

Reduce sick leave taken by 15%, resulting in a recurrent saving of approximately $1m Reduce days lost associated with workers’ compensation claims by 30%, resulting in an ongoing saving of

approximately $700,000


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3. Service Delivery Model Efficient delivery of services

Delivery Model Activity Description

1. ICT Managed Services

Transition to the managed service provider

First wave of the transformation services commenced

Contracts have been signed with Fujitsu Australia to deliver a range of ICT services, beginning with the transition of existing services in the first half of 2016. By year end, the first wave of transforming some services is scheduled to commence with the existing cloud ready servers and storage to Contractor supplied cloud services.

2. Local Government Platform

Implementation of the Local Government Platform during 2016

Implementation and Rollout of the Local Government Platform.

3. Support Services Review

Preliminary feasibility review of the Service Delivery Model for a range of services:

Stores (subject to the outcome of the depot review)

Accounts Payable/Purchasing (subject to the Procurement Review findings)

Depot review

The review of some procurement functions will be determined by the outcome of the procurement review currently underway. The depot review will provide the City with a short to medium term view of the size and location of depots needed to meet the demand of service delivery functions. The stores function and location(s) will be dependent on the depot review recommendations.

4. Grass Cutting Review of existing delivery model – grass cutting at cemeteries

There has been a subsequent review of maintenance delivery in cemeteries whereby the work is proposed to be undertaken through a Social Procurement Contract.

Contract has been prepared and is currently advertised.

Tenders close on 27 January 2016 with an anticipated commencement in April 2016.


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5. Grass Cutting Review of existing contracts

Council has recently conducted a successful tender of the revised and reduced number of zones, now comprising of 9 instead of 37.

Evaluation of these tenders is underway.

A new Grounds Maintenance contract has been developed to facilitate the separation of the DTMR maintenance including weed treatment and landscape activities. The Grounds Maintenance Contract will have separable portions comprising holistic green and growing maintenance activities for DTMR; Light Rail corridor; GCW and general landscaping (new & maintenance). Tender has been advertised and is awaiting finalisation.

6. Modern Award Certified Agreement 2016 TBC - awaiting outcome of appeals of Modern Award – changes to the Industrial Relations Act 1999 (Qld) have resulted in a temporary suspension of negotiations.

7. Scientific Services Review

Review the delivery model of Scientific Services, GCW

Key activities under the commercialisation implementation plan include:

1. Enhance Revenue (June 2015–Sept 2016), Algae, ICP, TOC testing brought in-house and NATA accredited by Q4 2015. Cryptosporidium and Giardia NATA accredited by Q4 2015. Target local market sectors in City of Gold Coast then expand outwards Identify four products for commercialisation

Q3 2015 - Q3 2016

2. Undertake cost efficiency review (June 2015–Sept 2016) Review process has been initiated

3. Develop contestability strategy (Oct 2016–Jan2018)


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8. Sourcing Strategy Review

The merging of Gold Coast Water and Waste and Resources Management will create an opportunity for potential changes to business planning and service delivery models. A significant review of the sourcing strategy for the City Water and Waste functions is being conducted.

Price Waterhouse Coopers has been engaged to conduct the review, which will consider current arrangements, potential sourcing models, and provision of corporate support services and opportunities for joint management. The review will involve the examination of alternative sourcing models and their application in Australia and overseas and will identify organisational principles and value drivers for the water and waste management functions. It will also review the market to identify potential service providers able to meet the City’s requirements in these services.

This review will be conducted over the next eight months, with recommendations arising from the review to be brought to the new Council in late 2016.


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4. Revenue What to fairly charge and how best to collect it

Revenue Activity Description

1. Whole of City Parking

City Parking Plan - review of whole of City parking to determine most appropriate management regime for on and off street parking in key centres across the city

Parking-In-Centre Scheme (PICS) which includes demand responsive pricing and local parking reinvestment were launched in October 2015.

2. Advertising Commercial advertising on Council land, buildings and facilities

An expression of Interest process is being conducted for a range of advertising opportunities, including some Council land and facilities’ such as the Bruce Bishop Carpark and public litter bins.

3. Waste Management

Waste Management Business Efficiency Project

The project will primarily focus on identifying un-rated properties being provided with a waste collection service and active marketing of our commercial waste collection services to expand the City’s customer base.

4. Commonwealth Games

Explore commercial advertising for its assets for the purposes of offsetting the financial contribution to the games

Sports Marketing and Management (SMAM) have commenced to include City assets in early discussions with potential Games sponsors. Two assets have received favourable feedback from potential sponsors. . Opportunities associated with these assets will be progressed over the coming months. As engagement with other potential GC2018 sponsors broadens, including Presenting Partners, there may be other opportunities with these and other City assets.


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5. Assets Ensure effective use of assets and alignment with vision

Assets Activity Description

1. Land Assets Review land assets to be endorsed for future disposal

Continue reviewing the City property portfolio to optimise holdings through disposal of surplus assets.

2. GPS Fleet Optimisation Audit

Expansion of GPS technology Continued roll out and installation of GPS devices in the City motorised fleet to enable accurate analysis and better utilisation of assets.

3. Electricity Management

Ongoing initiatives relating to the City’s expenditure on energy

Energy Management Strategic Plan – To provide a strategic long term corporate direction for energy management that provides a focus point for future investigation and implementation opportunities.

Energy Management Action Plan – Deliver energy cost savings across the organisation through improved practices and management activities

Initiatives Under Development:

Reduction of hours of operation to Rate 3 Park Lighting to 244 Parks require necessary changes to the light fittings

Full implementation to reduce the hours of operation to Rate 3 park lighting would achieve a savings of: $150,000 which will be reinvested to install LED lights for further savings.

Investigation of peak load at depots This has identified opportunities for installation of solar systems to manage peak load consumption. Currently seeking quotes for the installation of solar at Miami and Carrara Depots and expect that to be complete

in the current financial year. The Carrara and Miami solar project will see both sites become positive generators of electricity, i.e. they will generate more than they use

The annual cost avoidance for the depots (excl. Carrara) is approx. $30,000 combined.

Install a 100kW solar system plus lithium battery at Carrara Depot.

A pilot project is being investigated

The cost of the project is $185,000 with a payback period of 6.3 years. Savings in year 1 is approx. $22,000 with annual incremental increases. Concept phase of the Street Light project (bulk roll out of LED lights) is completed.

It is now in planning phase with the overall project timeframe estimated to complete in 2020 (which includes the final rollout of LED lighting).


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Assets Activity Description

The potential annual saving: Is approx. $4M in 2020 onwards (with no capital outlay by Council (valued by Energex at $16M)). This is subject

to ongoing discussion with LGAQ and Energex.

4. Recycled Water Closure of the Pimpama Coomera Class A+ Recycled Water Scheme – Transition Plan implementation

To achieve suspension of the Pimpama Coomera Class A+ Recycled Water Scheme (supply switch) by December 2016.

5. Water Efficiency Further activities to drive water efficiency with regards to City assets

1. SEQWater Demand Validation Study

GCW are currently partnering with SEQWater in a three year demand validation study. Sixty-two properties in the City are being logged to better understand water demand profiles and smart metering potential at an individual property level. SEQWater contributed the funding for the logging devices at properties, and Council is funding the management of the data.

The logging equipment provides consumption data to a “portal” accessible by GCW with the capability to place alerts, alarms and create key specific amounts (graphs/charts) on customer use. A number of water leaks have already been found through the system on the volunteer properties.

2. AMR Audits

Audits were performed on Automatic Meter Reading (AMR) systems at three major customer sites. The audits examined ongoing performance of the systems and to better identify poor performing equipment to inform GCW specifications for future AMR systems.

3. AMR specifications research

Improved GCW AMR specifications and applying new innovations can reduce maintenance costs and reduce potential revenue-related risks for Council and customers. AMR specification research has continued to examine current specifications, testing and future directions being applied by other utilities to avoid Council costs associated with conducting such research and testing in isolation.

6. Sustainable Pavement Management Plan (SPMP)

Development and implementation of the Sustainable Pavement Management Plan (SPMP) is a priority initiative for City Assets to minimise whole of life costs. The ultimate objective of the SPMP is to ensure sustainable and economically viable management of the City’s road pavement assets

The draft plan is complete and currently under review. Implementation of the key activities is in progress.

It is anticipated that implementation will be completed by December 2016.

6.


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6. Procurement How best to leverage and negotiate with suppliers

Procurement Activity Description

1. Procurement Review

Undertake a review of Council’s procurement model.

Initial planning activities for the Strategic Review of Procurement project have been completed. Project governance arrangements have been established and a project scope document has been released to potential consultants as part of a request for quotation (RFQ) process. Once consultants have been appointed in early FY2015, further detailed planning will be conducted with the review expected to be completed by December 2015.


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107 Adopted Report



Attachment C





Attachment D




ITEM 11 OFFICE OF THE CHIEF EXECUTIVE OFFICER STATE OF THE ORGANISATION REPORT (AS AT 30 JUNE 2015) LG449/756/04/01(P1) Refer attachment 1 1 BASIS FOR CONFIDENTIALITY 1.1 It is recommended that this report be considered in Closed Session pursuant to

section 275 (1) of the Local Government Regulation 2012 for the reason that the matter involves industrial matters affecting employees.

1.2 That the report and attachments be deemed non confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171(3) and 200(5) of the Local Government Act 2009.

2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT The State of the Organisation Report (SOOR) provides Council with a review of performance in specified key areas, including some that extend beyond simply organisational performance (e.g. Financial management). This report is presented by the CEO to Council annually as part of the commitment to good management and corporate governance. It is not required as part of any statutory obligations. 4 PREVIOUS RESOLUTIONS Ex minute GA14.1127.008 1 That the report and attachments be deemed non confidential except for those parts

deemed by the Chief Executive Officer to remain confidential in accordance with sections 171(3) and 200(5) of the Local Government Act 2009.

2 That Council note the State of the Organisation Report (30 June 2014). 5 DISCUSSION The State of the Organisation Report (SOOR) provides a review of organisational trends and performance as at 30 June 2015. The following is a summary of key aspects.

Customer contact

Customer enquiries increased by approximately 500,000 (15 per cent) to 3.7 million

70% of enquiries were web based

Over 60 per cent of customers accessed the website from mobile devices

Smartform usage increased significantly to 66,142 from 16,844


ITEM 11 (Continued) STATE OF THE ORGANISATION REPORT (AS AT 30 JUNE 2015) LG449/756/04/01(P1)

Development assessment

Planning applications increased by 22 per cent and building applications by 28 per cent

93 per cent of decisions were made within Integrated Development Assessment System (IDAS) timeframes

People management

Employee turnover rate remains relatively low at 6.8%

REDACTED

Work Health and Safety

REDACTED

Revenue

REDACTED

Corporate Reputation

173 Administrative Action complaints were received, compared with 160 in 2013-14. During the year 177 Administrative Action complaints were finalised and 19 were outstanding at 30 June 2015

For the fifth consecutive year there were no findings of maladministration by the Queensland Ombudsman

Financial Management

A ‘technical’ operating deficit of $18.4 million was recorded in 2014-15, resulting in an Operating Surplus Ratio of -1.6%, continuing the improving trend in operating results (previous year -5.4%). The 2014-15 ratio, when using Council’s Asset Management Plans to calculate depreciation was 12.6%, which is above the benchmark (0 -10%).

The Asset renewal funding result was 100% in 2014-15 indicating that Council is adequately providing for asset renewals in the long term financial plan. The Asset consumption ratio of 72% indicates that Council assets are still in relatively new condition

The Debt Service Ratio of 2.9% confirms that Council is sitting comfortably above the minimum target, indicating that debt commitments can be met

Over the last five years, the Independent Auditor has consistently provided the opinion that the financial statements present a true and fair view in accordance with the prescribed accounting standards. This audit opinion has been confirmed again for 2014-15.



6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Gold Coast 2020 B – We manage the city responsibly – our stewardship of the city provides value for money for ratepayers. 7 COMMONWEALTH GAMES IMPACT

Not applicable.

8 FUNDING AND RESOURCING REQUIREMENTS

This report has been produced using existing internal resources.

9 RISK MANAGEMENT

Not applicable.

10 STATUTORY MATTERS

Not applicable.

11 COUNCIL POLICIES

Not applicable.

12 DELEGATIONS

Not applicable.

13 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted



Manager Customer Contact Organisational Services Yes Executive Coordinator Planning Assessment

Planning and Environment Yes

Manager People and Culture Organisational Services Yes Manager Corporate Safety and Risk

Office of the CEO Yes

Manager Executive Services Office of the CEO Yes Chief Procurement Officer Organisational Services Yes Executive Coordinator Revenue Services


Manager Internal Audit Office of the CEO Yes Manager Corporate Communication


Executive Coordinator Financial Strategy and Development




14 STAKEHOLDER IMPACTS Internal stakeholders have provided a significant contribution to the development of this report through provision and analysis of data and supporting commentary. 15 TIMING Not applicable. 16 CONCLUSION The State of the Organisation Report for 2014-15 highlights a number of positive trends in results:

customers are embracing on-line services, with 70% of enquiries now web-based and significant increase in the use of on-line smartforms

a continuing reduction in rate arrears as a result of a structured approach to recovery

The report also highlights a number of challenges which are being addressed, including:

managing increasing numbers of customer telephone enquiries, despite the growth of on-line channels

responding to an ageing workforce, with 25.7% of City employees aged 55 or over

A range of benchmark performance measures comparing the City’s performance indicate that the City:

has significantly lower staff turnover rate than the Queensland Public Service

has a lower average working days lost due to workers compensation claims, and a lower average cost of claim than the industry average

operates within key financial benchmarks, including:

o Net Financial Liabilities Ratio o Leverage Ratio o Adjusted Operating Surplus Ratio o Debt Service Coverage o Asset Renewal Funding ratio

17 RECOMMENDATION It is recommended that Council resolves as follows:

1 That the report and attachments be deemed non confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171(3) and 200(5) of the Local Government Act 2009.

2 That Council note the State of the Organisation Report as at 30 June 2015. Author: Approved by:

Mark Harvey Dale Dickson Manager Executive Services Chief Executive Officer 27 January 2016 #51795968


ITEM 11 (Continued) STATE OF THE ORGANISATION REPORT (AS AT 30 JUNE 2015) LG449/756/04/01(P1) COMMITTEE RECOMMENDATION GA16.0211.011 moved Cr Crichlow seconded Cr Tozer 1 That the report and attachments be deemed non confidential except for those

parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171(3) and 200(5) of the Local Government Act 2009.

2 That Council note the State of the Organisation Report as at 30 June 2015.

CARRIED

30 June 2015 iSpot #49132618

State of the Organisation Report

2014 - 2015


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State of the Organisation Report

Contents

1. EXECUTIVE SUMMARY....................................................................................................................... 4

1.1 Customer contact ............................................................................................................................ 4

1.2 Development assessment ........................................................................................................... 4

1.3 People management ................................................................................................................... 4

1.4 Work Health and Safety .............................................................................................................. 4

1.5 Entertainment and hospitality ...................................................................................................... 4

1.6. Corporate Travel ............................................................................................................................. 4

1.7 Revenue ...................................................................................................................................... 5

1.8 Corporate Reputation .................................................................................................................. 5

1.9 Financial Management ................................................................................................................ 5

2. CUSTOMER CONTACT ....................................................................................................................... 6

2.1 Enquiries by channel ................................................................................................................... 6

2.2 Customer contact enquiries ........................................................................................................ 7

2.3 Contact centre enquiries ............................................................................................................. 8

2.4 Performance overview ................................................................................................................ 8

2.5 Customer service enquiry type .................................................................................................... 9

2.6 Website volumes ....................................................................................................................... 10

2.7 Customer satisfaction ................................................................................................................ 10

2.8 Quality ....................................................................................................................................... 11

3. DEVELOPMENT ASSESSMENT ....................................................................................................... 12

3.1 Planning and building applications ............................................................................................ 12

3.2 Planning assessment timeframes ............................................................................................. 12

3.3 RiskSmart applications .............................................................................................................. 13

4. PEOPLE MANAGEMENT ..................................................................................................................... 14

4.1 Full time equivalent positions ................................................................................................... 14

4.2 Gender ........................................................................................................................................... 14

4.3 Age profile ..................................................................................................................................... 15

4.4 Employee turnover ........................................................................................................................ 15

4.5 Personal leave ............................................................................................................................... 16

4.6 Employment status of officers returning from maternity leave .................................................. 17

4.7 Excess accrued leave .................................................................................................................. 18

4.8 Overtime hours expenditure ...................................................................................................... 19

5. WORK HEALTH AND SAFETY ......................................................................................................... 20

5.1 Reported work health and safety incidents ............................................................................... 20

6. ENTERTAINMENT AND HOSPITALITY ............................................................................................ 27

6.1 Expenditure by directorate ........................................................................................................ 27

7. CORPORATE TRAVEL ...................................................................................................................... 28


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8. REVENUE ........................................................................................................................................... 29

8.1 Debtor portfolio to water and rate accounts .............................................................................. 29

8.2 Combined aged debtors ............................................................................................................ 29

8.3 Recovery Profile (water and rates) ............................................................................................ 30

8.4 Recent True Overdue Per Cent ................................................................................................ 32

8.5 Infrastructure charges ................................................................................................................... 32

9. ENTERPRISE RISK MANAGEMENT ................................................................................................. 33

10. BUSINESS CONTINUITY ................................................................................................................... 34

11. CORPORATE REPUTATION ................................................................................................................. 35

11.1 Administrative Action Complaints .............................................................................................. 35

11.2 Queensland Ombudsman Reviews ........................................................................................... 36

11.3 Internal Audit Report ................................................................................................................. 36

11.4 Media Sentiment ....................................................................................................................... 36

12. FINANCIAL MANAGEMENT .............................................................................................................. 38

12.1 Financial Ratios ......................................................................................................................... 38

12.2 Annual Revenue Forgone ........................................................................................................... 40

13. ANNEXURES ...................................................................................................................................... 41

13.1 Annex A - Benchmarking Summary .......................................................................................... 41


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1. EXECUTIVE SUMMARY

The State of the Organisation Report (SOOR) provides an analysis of organisational performance in key management areas supporting effective corporate governance.

The following is a summary of the key trends over the financial year.

1.1 Customer contact

Customer enquiries increased by approximately 500,000 (15 per cent) to 3.7 million

Seventy per cent of enquiries were web based, with significant activity associated with on-line services, including payments

Over 60 per cent of customers accessed the website from mobile devices

Smartform usage increased significantly to 66,142 from 16,844

Rates and Water enquiries have increased significantly over the last 2 years as a result of quarterly billing

1.2 Development assessment

Planning applications increased by 22 per cent and building applications by 28 per cent

93 per cent of decisions were made within Integrated Development Assessment System (IDAS) timeframes

The percentage of assessments made under RiskSmart increased from 25 per cent to 28 per cent

1.3 People management

Employee turnover rate remains relatively low at 6.8%

Excess annual leave has remained static

REDACTED

1.4 Work Health and Safety

REDACTED

Accepted lost time injury claims decreased slightly to 267

The average number of work days lost remained relatively constant at 40.5, compared to the industry average of 45.6.

1.5 Entertainment and hospitality

REDACTED

1.6. Corporate Travel

REDACTED


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1.7 Revenue

REDACTED

1.8 Corporate Reputation

173 Administrative Action complaints were received, compared with 160 in 2013-14. During the year 177 Administrative Action complaints were finalised and 19 were outstanding at 30 June 2015

142,169 Penalty Infringement Notices were issued; 15,756 review requests were received, resulting in 4,343 waivers

15 complaints were referred to the Energy and Water Ombudsman and 14 were finalised by 30 June 2014

for the fifth consecutive year there were no findings of maladministration against the City by the Queensland Ombudsman

51 per cent of media reports were favourable in 2014-15. Most broadcasts related to civic projects and events

1.9 Financial Management

A ‘technical’ operating deficit of $18.4 million was recorded in 2014-15, continuing the improving trend in ‘technical’ operating results

The Net Financial Liabilities ratio was well under the maximum benchmark in 2014-15 at 15.8%, confirming that Council and has the capacity to comfortably fund liabilities

The Asset renewal funding result was 100% in 2014-15 indicating that Council is adequately providing for asset renewals in the long term financial plan. The Asset consumption ratio of 72% indicates that Councils assets are still in relatively new condition

The Debt Service Ratio of 2.9% confirms that Council is sitting comfortably above the minimum target indicating debt commitments can be met

Over the last five years, the Independent Auditor has consistently provided the opinion that the financial statements present a true and fair view in accordance with the prescribed accounting standards. This audit opinion has been confirmed again for 2014-15.


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2. Customer contact

2.1 Enquiries by channel

Table 1: All customer contact enquiries by communication channel

Channel 2012-13 2013-14 2014-15 Telephone 362,728 398,064 419,465Switchboard 239,770 226,823 213,216Face to Face 96,397 119,058 122,631Receipting 84,191 94,012 97,789Email / Letter / Mobile App 47,921 50,918 57,913Web 1,948,333 2,235,133 2,654,053Smart forms / Online Account Balances N/A 16,844 66,142Online Payment Arrangements N/A 8,455 13,087Searches 35,835 48,736 51,221Total 2,815,175 3,198,043 3,695,517

Overall customer contact enquiries increased by 15 percent from 2013-14 to 2014-15. The highest volume of growth occurred via online channels (54 per cent). There were also increased telephone enquiries and face to face customer service centre enquiries. The number of enquiries peaked in April as a result of water billing. Email and Mobile application channels increased by 13 per cent due to the introduction of the Report a Problem (RAP) online form launched in December 2014 and the expansion of Mobile app services. Website traffic continues to increase and was up by 18 per cent in 2014-15. SmartForm usage continued to grow with the release of the following additional SmartForms during 2014-15: Food Safety Supervisor Nomination Direct Debit Request Direct Debit Change Request Development Application Payment Arrangements Fixed Food Premises Advertising Devices Replacement cat or dog registration tag Animal registration - change of details PIN Objection Form Temporary banner advertisement licence Refund of cat or dog registration fees Temporary Food Premises Use of Council Controlled Land – Events Private Certifier Private Certifier Correspondence Plumbing Inspections Report a Problem (RAP) Community Centre Booking Request Online Payment Dog Registration Property search demand increased by more than 2,400 from 2013-14 to 2014-15.


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2.2 Customer contact enquiries

Table 2: Customer Contact enquiries by type of enquiry

Enquiry type 2012-13 2013-14 2014-15

City Parking 33,099 30,304 32,658

Maintenance Services 48,599 43,260 41,484

Community Venues and Parks and Recreational Services

27,869 25,556 21,991

Animal Management 25,921 28,597 31,594

Health and Regulatory Services 52,771 52,260 53,174

Revenue Services (Rates/Water) 125,900 175,283 200,235

Water Service 108,539 60,634 62,033

Building Plumbing & Drainage 26,543 48,015 58,168

Payments 84,191 94,021 97,789

Planning & Environment, Transport and Development Applications

22,695 32,287 29,945

Waste 9,131 38,466 50,328

Other 20,303 16,279 13,082

Total 585,561 644,962 692,481 Note -changes in data collection: In 2012-13, P&E, Plumbing & Drainage, and Waste were centralised to Customer Contact throughout the year, so the volume only represents a partial period In 2012-13, Rates and Water enquiries were received in separate queues, however from 2013-14 onwards, Rates & Water billing enquiries were received via the “Revenue Services” queue, and the Water service enquiries were received via the “Water Service” queue. Animal Management enquiries increased by 10 per cent as a result of the recommencement of the Animal Management door knock. Barking Dog issues reported via the Report a Problem (RAP) also contributed to the increase. Building Plumbing & Drainage enquiries have increased by over 10,000 since 2013-14. Maintenance Services requests decreased by 1,776, as Council staff can now raise notifications directly in SAP rather than via Customer Contact. Enquiries about Waste Management increased by 30 per cent due to Green Waste Bin service delays associated with the change of contractor. As a result, there were limited contractor resources available to respond to Customer Contact Consultants who were following up customer enquiries. This created a backlog in customer response times (both voice and email) and increased calls to the contact centre.


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2.3 Contact centre enquiries

Table 3: Contact Centre enquiries

Enquiry type 2012-13 2013-14 2014-15

Animal Management 19643 20893 21996

City Development 22518 43216 51182

City Parking 24969 22501 25879

Community Venues 9396 9746 8772

Environmental Health Compliance 15260 14411 15047

Licensing and Approvals 19410 21480 20197

Local Law 14563 10583 15169

Maintenance Services 47057 42152 40476

Parks and Recreational Services 12626 10816 8422

Water Service 93452 46680 40827

Waste Management 9131 48709 50434

Other 4091 4043 2479

Revenue Services (Rates/Water) 113165 159134 179312

Total 405,281 454,364 480,192 Note -changes in data collection: In 2012-13, City Development and Waste were centralised to Customer Contact throughout the year, so the volume only represents a partial period In 2012-13, Rates and Water enquiries were received in separate queues, however from 2013-14 onwards, Rates & Water billing enquiries were received via the “Revenue Services” queue, and the Water service enquiries were received via the “Water Service” queue. City Development call and email volume (which includes Plumbing & Drainage and Development Compliance) increased by 18 percent during 2014-15. City Parking call volume increased by 15 percent during 2014-15. Enquiries were mainly in relation to the new parking meters. Enquiries about Parks and Recreational Services reduced due to recorded voice announcements advising customers that park bookings can be made online. The 12 per cent decrease in Water Service enquiries is attributed to lower wait times in the Contact Centre.

2.4 Performance overview

Table 4: Contact Centre calls, speed of answer and grade of service

2013-14 2014-15

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Calls offered 151,409 91,702 139,031 92,023 127,419 106,692 125,938 102,914

Calls answered 124,821 84,494 108,756 79,993 117,838 99,733 109,271 92,623

Calls abandoned 26,588 7,208 30,275 12,030 9,581 6,959 16,557 10,222Average speed of answer (minutes and seconds)

3:39 1:28 2:39 1:29 1:37 1:14 3:19 2:33

Grade of service 34.24% 54.11% 39.74% 54.52% 56.36% 61.24% 31.02% 38.12% Note: Calls abandoned are calls where the customer hangs up before being answered Grade of Service (GOS) is a universal Contact Centre measurement used to determine the staffing required at any given time to answer calls within an agreed target. Our target is 80 per cent of calls answered within 50 seconds, however this outcome is dependant mostly on customer demand, and staffing available to handle that customer demand.


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The number of calls abandoned by the Contact Centre during the fourth quarter of 2014-15 (10,222) decreased by 15 per cent compared to the same period in 2013-14. This is attributed to the use of temporary agency employees to help support the impact of increased enquiries relating to quarterly water billing. On average, the speed of answer decreased during 2014-15. Quarterly fluctuations in answering speed are attributed to staffing variations. Table 5: Switchboard calls and speed of answer

2013-14 2014-15

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Calls Offered 65,964 52,722 59,455 52,768 57,664 50,598 57,507 51,635

Calls Answered 64,265 51,923 58,775 52,160 56,195 49,580 56,550 50,880

Calls Abandoned 230 195 190 214 709 606 569 503

Average Handling Time 0:27 0:27 0:28 0:23 0:22 0:23 0:23 0:22

Answer within 10 secs 89% 89% 88% 87% 87% 87% 86% 85%

Answer within 20 secs 8% 8% 9% 9% 8% 9% 9% 10%

Answer more than 20 secs 3% 3% 3% 4% 5% 4% 5% 5% The total number of calls to the Switchboard during 2014-15 (217,404) decreased by 13,505, or 6 per cent since 2013-14. This is attributed to improved Contact Centre performance resulting in less repeat calls. The total number of abandoned calls was higher than for 2013-14 but decreased during the year.

2.5 Customer service enquiry type

Table 6: Customer Service enquiries Enquiry Type 2012-2013 2013-14 2014-15

Animal Management 6,331 7,704 9,598

AMS Building and Plumbing Applications

9,132 8,536 10,117

AMS Town Planning Applications 6,646 5,257 4,979Building 1,818 2,578 3,590City Parking 8,246 7,803 6,779

Community Venues and Parks and Recreational Services

5,865 4,994 4,797

Health and Regulatory Services 3,390 3,064 3,339Maintenance Services 1,570 1,108 1,008Planning & Environment 5,644 18,493 14,849Plumbing and Drainage 2,266 2,221 3,396Revenue Services (Rates) 13,818 15,696 17,921Water Enquiries 16,493 14,445 21,015Other Council Enquiries / Issues 8,514 5,881 5,397Non Council Enquiries / Issues 7,060 6,355 5,206Total 96,793 104,135 111,991

Note: Where possible, the enquiry types reported for Customer Service have been aligned to the enquiry types for the Contact Centre, however due to the scope of services provided at the Customer Service centres, there are some differences in categories. The number of enquiries at the Customer Service centres increased during 2014-15. In particular:

Animal registration enquiries increased by 1,894 since 2014-15. Rates and Water enquiries, combined, increased by 8,795 primarily due to the introduction of the

quarterly water billing.


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2.6 Website volumes

Table 7: Number of City Internet page views

2012-13 2013-14 2014-15

Library Services 583253 650640 666650

Home Page 410703 390113 366757

City jobs 230040 197092 183078

Search 139984 131881 121754

Contact us 109670 129610 137373

Payments 43039 100647 127595

Other 431644 638691 1050846

Total 1,948,333 2,238,674 2,654,053 Website traffic continued to grow primarily due to the increase online services, particularly payments. Over 60 per cent of customers accessed the website from mobile devices.

2.7 Customer satisfaction

Table 8a: Contact Centre customer satisfaction – survey used up until 30/9/14

Rating 2013-14 2014-15

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1: Firstly, we would like to know if your call today was resolved to your satisfaction? Yes 97% 98% 98% 98% 97% No 3% 2% 2% 2% 3% Q2: On a scale of one to five, where one is very satisfied and five is very dissatisfied, how satisfied would you say you are with the consultant you just spoke to? 1. Highly satisfied 84% 84% 85% 84% 85% 2. Satisfied 6% 7% 6% 6% 6% 3. Neutral 1% 2% 1% 1% 2% 4. Dissatisfied 2% 2% 2% 2% 2% 5. Highly dissatisfied 7% 5% 5% 6% 6% Q3: On a scale of one to five, where one is very satisfied and five is very dissatisfied, please tell us how satisfied you are with the overall customer service experience of Gold Coast City Council? 1. Highly satisfied 72% 77% 74% 79% 79% 2. Satisfied 14% 14% 15% 13% 13% 3. Neutral 8% 5% 7% 4% 4% 4. Dissatisfied 3% 2% 2% 2% 2% 5. Highly dissatisfied 3% 2% 2% 2% 2%


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Table 8b: Contact Centre customer satisfaction – survey used after 1/10/15

Rating 2013-14 2014-15

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1: Firstly, we would like to know if your call today was resolved or handled to your satisfaction? Yes 81% 77% 80%No 10% 12% 9%Too Early To Tell 9% 12% 11%Q2: How satisfied are you with the consultant you just spoke to? On a scale of 1 to 5 enter a number using your telepad where 1 is excellent and 5 is disappointing. 1. Excellent 77% 75% 76%2. Good 9% 8% 10%3. Average 3% 4% 3%4. Fair 2% 3% 2%5. Disappointing 9% 10% 8%Q3: How would you rate overall customer service experience with City of Gold Coast? On a scale of 1 to 5 enter a number using your telepad where 1 is excellent and 5 is disappointing. 1. Excellent 58% 55% 56%2. Good 20% 19% 18%3. Average 8% 9% 10%4. Fair 3% 4% 4%5. Disappointing 11% 13% 12%

In September 2014 the contract with the Customer Satisfaction Survey vendor was not renewed, as the capability to deliver this survey will be incorporated into the new Customer Contact telephony platform. An alternative survey is now in use and results between the old survey and new survey cannot be directly compared. The new survey results from Q2 to Q3 and Q4 I 2014-15, show a small decline in customer satisfaction against all three categories, with feedback from customers indicating that wait times for the Contact Centre was the main factor.

2.8 Quality

Table 9a: Contact Centre quality – evaluation model used up until 31/12/14

2013-14 2014-15

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

87% 87% 91% 92% 86% 92%

Table 9b: Contact Centre quality - evaluation model used after 1/1/15

2014-15 2014-15

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

85% 82%

In January 2015 a new Quality Management Framework and scoring criteria was introduced for phone call quality and email evaluations. The new framework is weighted more heavily than the previous approach and also has stretched customer contact consultant KPI’s.


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3. Development assessment

3.1 Planning and building applications

Table 10: Planning Applications received

Application Type 2012-13 2013-14 2014-15

Material Change Of Use 847 1108 1,549

Reconfiguration of a Lot 253 328 370

Operational Works 1,837 2,072 2,421

Management Plans 96 83 111

Survey Plans 300 338 417

Miscellaneous 206 834 947

Total 3,539 4,763 5,815

In 2014-15 there was a 22 per cent increase in the number of development applications (material change of use and reconfiguration of a lot) received and an increase in the number of associated and related applications for management plans, survey plans and other miscellaneous applications.

Table 11: Building Applications received

Application Type 2012-13 2013-14 2014-15

Amended Plans 247 331 311

Demolition 199 223 232

Duplex 155 176 271

House 1,872 2,418 3,321

Miscellaneous Building 677 853 1,071

Multi-unit Dwelling 50 58 81

Outbuilding 1,120 1,276 1,021

Plumbing and Drainage 2,926 3,646 5,008

Pool/Spa 760 1,062 1,307

Preliminary Approval 2,362 2,927 3,979

Shop Fit Out 258 313 411

Unit Residential 15 10 17

Total 10,641 13,293 17,030

Building Applications increased by 28 per cent, with over 3,700 submissions more than the previous year.

3.2 Planning assessment timeframes

Table 12: Acknowledgements, requests and decisions processed within IDAS timeframes

Procedure 2012-13 2013-14 2014-15

Acknowledgement notices issued within IDAS timeframes 97% 96% 95%

Information requests completed within IDAS timeframes 94% 92% 92%

Decision within IDAS timeframes 97% 97% 93%

There was a decrease in the percentage of Acknowledgement Notices, whilst information requests remained the same. Decisions within IDAS timeframes fell by 4 per cent, but remained high at 93 per cent.


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3.3 RiskSmart applications

Table 13: RiskSmart Assessments

2012-13 2013-14 2014-15

MCU/ROL applications received 552 700 879

Number assessed under RiskSmart 98 (18%) 177 (25%) 246 (28%)

RiskSmart has proven to be successful with a continuing increase in the number of applications received. .


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4. PEOPLE MANAGEMENT

4.1 Full time equivalent positions

Table 14: Full time equivalent positions

REDACTED

REDACTED

4.2 Gender

Table 15: Organisational gender profile

30-Jun-13 30-Jun-14 30-Jun-15 Female 37.7% 36.6% 37.0%

Male 62.3% 63.4% 63.0%*Permanent employees only Table 16: Executive employee* gender profile

30-Jun-13 30-Jun-14 30-Jun-15 Female 29% 25% 27.2%

Male 71% 75% 72.8%*Employees on executive contracts Table 17: Directorate gender profile 30 June 2015

Community

Services EDMP City

Infrastructure Gold Coast

Water Office of

CEO Organisational

Services Planning and Environment

Female 46.2% 75.0% 15.0% 21.5% 71.3% 47.8% 46.8%

Male 53.8% 25.0% 85.0% 78.5% 28.7% 52.2% 53.2%*Permanent employees only Table 18: Gender profile comparison (rounded figures) 30 June 2015 Industry Overall Female

(%) Overall Male

(%) Executive Female

(%) Executive Male

(%) City of Gold Coast 37 63 27 72Queensland Public Service 65 35 32 68Australian Public Service 58 42 - -

There has been 3 per cent decrease in the ratio of female to male staff over the previous three year period. For executive level of staff, there was a 2.2 per cent increase in the ratio of females to males compared with 2013-14.


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4.3 Age profile

Table 19: Employees aged 55 years and over by directorate

Directorate

30-Jun-13 30-Jun-14 30-Jun-15Number

% 55 years+

Number% 55

years+

Number % 55

years+ 55-64 years

65 years +

55-64 years

65 years +

55-64 years

65 years+

City Infrastructure 251 37 27.5% 262 38 28.2% 198 21 25.0% Community Services 146 20 23.9% 147 21 24.5% 156 28 26.2% EDMP 6 9.2% 8 13.1% 10 1 16.2% Gold Coast Water 89 15 27.0% 88 15 28.3% 94 13 29.5% Office of CEO 40 3 20.9% 35 3 19.9% 34 6 21.3% Organisational Services

90 10 20.3% 82 5 19.7% 150 15 28.1%

Planning and Environment

72 9 22.9% 58 10 22.3% 56 14 22.7%

TOTAL 694 94 24.3% 680 92 24.8% 698 98 25.7% *Permanent employees only Table 20: Employees aged 55 years + comparison 30 June 2015 Industry Employees aged 50

years + (%) Employees aged 55 years + (%)

City of Gold Coast 40.2% 25.7%

Queensland Public Service - 20.5%

Australian Public Service 31.4% -

The City has a higher representation of employees over 55 years of age compared with the Queensland Public Service, and a significantly higher percentage of employees over 50 years compared with the Australian Public Service.

4.4 Employee turnover

Table 21: Permanent employee turnover rate

2012 -13 2013-14 2014-15

Turnover rate (%) 6.2 6.0 6.8 *Permanent employees only

Table 22: Permanent employee turnover rate by directorate 1 July 2014 to 30 June 2015 Directorate Turnover rate (%) City Infrastructure 9.3 Community Services 4.5 EDMP 4.5 Gold Coast Water 6.0 Office of CEO 10.0 Organisational Services 6.3 Planning and Environment 4.9

Table 23: Employee turnover over by industry sector 1 July 2014 to 30 June 2015 Industry Turnover rate (%)City of Gold Coast 6.8 Queensland Public Service 11.5 Australian Public Service -

The turnover rate for the City was consistently low over the last three years. A larger number of redundancies as a result of organisational change has resulted in a marginal increase during 2014-15 however the overall turnover rate remains significantly less than that of the Queensland Public Service.


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4.5 Personal leave

The following provides a summary of personal leave statistics. Personal leave includes sick leave, family leave, compassionate leave, pupil free days and sick leave with no pay.

REDACTED

Note: Total leave divided by total FTE.

REDACTED

Note: Average personal leave per FTE may be inflated as a result of staff on longer term leave.

REDACTED


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REDACTED

REDACTED

4.6 Employment status of officers returning from maternity leave

Table No.: Number of officers returned from maternity leave by employment status 1 July 2014 to 30 June 2015

Directorate Full time

returning to part time

Full time returning to

full time

Part time returning to

part time

Terminated at end of leave

Total

City Infrastructure 2 1 3 Community Services 8 1 9 EDMP 2 2 Gold Coast Water 6 2 2 10 Office of CEO 3 3 Organisational Services 4 2 1 4 11 Planning and Environment 5 2 1 8 TOTAL 30 8 1 7 46


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4.7 Excess accrued leave

The following tables provide a summary of excess accrued leave at 9 July 2015. Excess accrued leave includes: excess annual leave (greater than two years of accrual) banked RDOs greater than five days standby leave (leave provided to employees who are on call on a public holiday), and; time in lieu accrued more than three months prior REDACTED

REDACTED

The overall excess annual leave liability figures remained fairly static during 2013-14 and 2014-15. However the number of people with net excess annual leave balances, after taking into account future booked leave, has increased from 152 last year to 176 this year. 39 of these employees are on part time hours and a number of these people will be in excess due to moving from full time to part time hours in situations such as returning from maternity leave.


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4.8 Overtime hours expenditure

The overtime hours' expenditure includes labour cost payments in respect of general overtime. This data does not include allowances, penalties, higher duties allowance, and casual labour costs.

REDACTED

REDACTED

REDACTED

The 2014-15 overtime expenditure is the lowest in four years and more than $1.6M less than 2013-14. The significant reduction in overtime expenditure is attributed to less significant incidents and weather events during the period, as well as targeted initiatives such as the implementation of the Fatigue Management Policy and the continuing review of workforce management activities such as rostering.


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5. WORK HEALTH AND SAFETY

5.1 Reported work health and safety incidents

REDACTED

REDACTED

Incidents by type

Table 34 lists all incidents reported by type.

REDACTED


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REDACTED injury up from 31 per cent to 33 per cent

REDACTED

The number of near hit or injury incident record count decreased in 2014-15. The Fleet Branch moved to Organisational Services in May 2015, which is reflected in Organisation Services increase in incidents. There was a decrease in injury incident records from Community Services.

Injury or illness type

REDACTED

* Prior to the introduction of HandS (December 2013) this data was not available.

REDACTED


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Injuries by location on body

REDACTED

* Prior to the introduction of HandS (December 2013) this data was not available.

REDACTED


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Injuries or illness by nature of injury or illness

REDACTED

* Prior to the introduction of HandS (December 2013) this data was not available. REDACTED


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Injuries or illness by mechanism

REDACTED

* Prior to the introduction of HandS (December 2013) this data was not available REDACTED


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5.2 Workers Compensation Data

REDACTED

The number of claims registered remained relatively consistent with previous years.

Table 41: Days lost by directorate at 30 June 2015

Directorate Number of compensable days lost

2012-13 2013-2014 2014-15

Community Services 1,324 2,533 1399

EDMP 0 0 8

City Infrastructure 2,840 4,017 1876

Gold Coast Water 257 194 218

OCEO 37 27 0

Organisational Services 840 79 769

Planning and Environment 515 377 145

Total 5,813 7,326 4416

It should be noted that days lost will increase until all claims are closed. Table 42: Cost of claims by directorate at 30 June 2015

Directorate Accepted cost of claims ($)

2012-13 2013-14 2014-15

Community Services $485,821 $1,020,470 $505,527

EDMP 0 0 $6070

City Infrastructure $1,670,199 $1,660,606 $691,640

Gold Coast Water $179,327 $162,296 $89,650

OCEO $34,589 35,565 $3281

Organisational Services $310,023 $40,750 $301,857

Planning and Environment $131,506 $141,839 $87,367

Total $2,811,464 $3,061,525 $1,685,395

It should be noted that costs will increase until all claims are closed. Only approximately 50 per cent of costs are incurred in the first year following an injury.


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Council continues to perform well in rehabilitation with better than state average return to work outcomes reflected in lower claims cost.

REDACTED


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6. ENTERTAINMENT AND HOSPITALITY

6.1 Expenditure by directorate

REDACTED

REDACTED


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7. CORPORATE TRAVEL

REDACTED

*Figures exclude external guests

REDACTED

REDACTED

REDACTED


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8. REVENUE

8.1 Debtor portfolio to water and rate accounts

REDACTED

REDACTED

8.2 Combined aged debtors

REDACTED


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8.3 Recovery Profile (water and rates)

REDACTED

Advanced recovery 3,738 2,946 $17,473,629 $14,453,137 3,492 2,799 $12,469,987 $10,296,070 7,230 5,745 $29,943,616 $24,749,207


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REDACTED

Pensioners unrecoverable 305 237 $775,004 $606,473 389 278 $978,268 $889,476 694 515 $1,753,272 $1,495,949

Payment arrangement 4,996 3,973 $6,872,309 $5,354,252 5,334 5,369 $4,965,795 $5,150,207 10,330 9,342 $11,838,104 $10,504,459

Below advanced Recovery 830 338 $995,488 $313,935 1,276 2,757 $692,333 $1,387,399 2,106 3,095 $1,687,821 $1,701,334

Withhold recovery action 237 69 $1,573,614 $883,664 132 61 $480,311 $294,419 369 130 $2,053,925 $1,178,083

Other 6,368 4,617 $10,216,415 $7,158,324 7,131 8,465 $7,116,707 $7,721,501 13,499 13,082 $17,333,122 $14,879,825

Grand total 18,193 14,704 $40,956,053 $30,953,612 15,484 18,789 $24,750,482 $23,613,398 33,677 33,493 $65,706,535 $54,567,011

Note: The data shown in the Recovery Profile does not match other data quoted by Revenue Services. This is because the data is specific to the date the report was run.

REDACTED

.

.


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8.4 Recent True Overdue Per Cent

REDACTED

There is a continuing downward trend in the True Overdue percent demonstrating that current recovery processes are being effective. 8.5 Infrastructure charges

Table 52: Infrastructure charges

Status 1 January to 30 June 2014 1 July to 31 December 2014 1 January to 30 June 2015

# of

Accounts

$

% # of

Accounts $ % # of

Accounts

$

%

Paid 31 $1,348,961.61 19.92 35 $1,251,571.96 18.5 34 $1,035,611.18 15.3

Payment Arrangement

6

$258,577.25

3.82 10 $330,090.26 4.8

7

$208,369.65

3.1

Initial Recovery

21

$4,168,615.23

61.55 6 $2,930,416.28 43.3

10

$1,579,506.00

23.3

Advanced Recovery

1

$6,327.19

0.09 3 $316,411.05 4.7

2

$261,023.19

3.9

External Legal 1 $87,914.11 1.30 2 $99,524.28 1.5 1 $44,000.00 0.6

Pending Legal 1 $6,431.75 0.09 4 $715,543.29 10.5 6 $2,515,047.10 37.1

Charges Withdrawn

10

$896,400.00

13.23 11 $1,129,670.02 16.7

11

$1,129,670.02

16.7

Total 71 $6,773,227.14 100 71 $6,773,227.14 100 71 $6,773,227.14 100

It is possible that in 2015-16 a number of ratepayers will opt to defer payment of the infrastructure charges, as this type of charge has now been incorporated in the Deferral of Rates Policy.


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9. Enterprise risk management

Table 53: Corporate Risks 31 December 2014 30 June 2015

Directorate Corporate

Risk

Current Risk Level Controls Mitigations

Corporate Risk

Controls Mitigations

Extreme High Med Low Extreme High Med Low

Community Services

4 0 2 2

0 34 11 2 0 2 0 0 22 11

EDMP 3 1 2 0 0 14 6 4 0 2 2 0 35 11

City Infrastructure 2 0 2 0 0 22 10 3 1 2 0 0 16 4

Gold Coast Water 1 0 1 0 0 13 1 1 0 1 0 0 13 2

Office of CEO 9 0 9 0 0 104 39 9 0 9 0 0 104 38


1 0 1 0

0 8 5 1 0 1 0 0 7 5

Planning and Environment

1 1 0 0

0 5 17 1 1 0 0 0 16 2

TOTAL 21 2 17 2 0 200 89 21 2 17 2 0 213 73

The number of Corporate Risks did not vary and the overall number rated extreme, high, medium or low did not incur any adjustments. The two risks extreme risks are Commonwealth Games 2018 and Local Government Infrastructure Plan.

The statistics identified an increase of 6 per cent in the number of controls identified and there was a slight decrease in the number of identified mitigation, which represents a reduction of 18 per cent. This was due to a number of mitigations completed and now forming a control or additional controls identified. This was evident in risk “A Local Government Infrastructure Plan (LGIP) is not prepared in accordance with Statutory Guideline 03/14 resulting in City wide impacts on the infrastructure planning, funding and charging framework” which had only identified five controls in the December 2014 period where as in the June 2015 period there were 16 listed controls. The majority of the increase was due to mitigations being formed as a control from 17 by the December period to two by the June 2015. No other significant changes were recorded.


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10. Business Continuity

Table 54: Number of Business Continuity Plans, Critical Operations and Accountable Persons by Directorate

Directorate

30-Jun-14 30-June-15

BCPs Critical

Operations Accountable

Persons BCPs

Critical Operations

Accountable Persons

Community Services 11 23 4 4 7 2

EDMP 2 2 2 0 0 0

City Infrastructure 9 29 5 5 15 2

Gold Coast Water 1 4 1 1 4 1

Office of CEO 2 2 2 4 7 3

Organisational Services 8 26 4 7 27 6

Planning and Environment 2 3 2 2 3 2

TOTAL 35 89 20 23 63 16

* Note: The Internal Incident Management Plan within the Office of CEO has been included in these statistics

Business Continuity Management underwent its scheduled desktop reviews during 1 January to 30 June 2015. As part of the City Infrastructure review, a number of BCP’s, Critical Operations and Accountable Persons were realigned across Council.

Overall the total number of BCP’s and Critical Operations has not varied and the number of BCP’s per programs has not altered during the year.


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11. CORPORATE REPUTATION

11.1 Administrative Action Complaints

Table 55: Administrative Action Complaints received, 1 July 2014 to 30 June 2015

Directorate Complaints received

2012-13 2013-14 2014-15

Community Services 69 90 83

EDMP 22 27 20

City Infrastructure 30 10 10

OCEO 14 12 30

Organisational Services 13 2 19

Planning and Environment 6 12 11

Gold Coast Water* 0 0 0

Total 164 160 173

* Note: GCW complaints may also be managed via the Water Ombudsman or Revenue Services if they are billing related.

The increase in the number of complaints is due to the improved compliance with the requirement to register complaints and to distinguish complaints from requests for service, expressions of opinion, requests for information etc.

Table 56:Administrative Action Complaints finalised, 1 July 2014 to 30 June 2015

Directorate

Complaints status (number)

Complaints outstanding at

30/6/14

Complaints received

Complaints finalised


30/6/15

Community Services 9 83 87 5

EDMP 1 20 19 2

City Infrastructure 1 10 11 0

Gold Coast Water 0 0 0 0

OCEO 5 30 32 3

Organisational Services 4 19 19 4

Planning and Environment 3 11 9 5

Total 23 173 177 19

The number of complaints dealt with by the OCEO is reflective of an increase in complex complaints received. A complaint may be considered complex if it involves numerous Directorates, has significant process or cost implications, is of a sensitive nature, or needs to be referred to the CEO. Table 57: Penalty Infringement Notices, 1 July 2014 to 30 June 2015

Type of notice PIN Review requests (number)

Number of PIN’s issued 2014-15

PIN review requests

PIN’s Involving officer

complaints

Resulting in waiver of PIN

Local Law 401 59 1 23

Animal Management 1,622 271 0 72

Environmental Health 870 21 0 1

City Parking 139,276 15,405 0 4,247

Total 142,169 15,756 1 4,343


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Privacy complaints

Table 58: Privacy complaints finalised at 30 June 2015

Directorate

Complaints status (number)


30/6/14

Complaints received

Complaints finalised

Complaints outstanding

at 30/6/15

Privacy complaints 0 6 5 1

During 2014-15 there were no complaints referred to the Information Commissioner for review.

Energy and Water Ombudsman

Table 59: Energy and Water Ombudsman complaints, 1 July 2014 to 30 June 2015

Type Number of complaints

Outstanding at 30/6/2014

Received 1/7/14 to 30/6/15

Finalised by 30/6/15

Outstanding at 30/6/15

Refer to higher level 0 15 14 1

Notice of investigation 0 5 5 0

11.2 Queensland Ombudsman Reviews

2014/15 represents the fifth consecutive year that there have been no findings of maladministration against the City of Gold Coast by the Queensland Ombudsman.

11.3 Internal Audit Report

Table 60: Completion of prior years’ audit recommendations

Audit recommendations complete (%)

2010 2011 2012 2013 2014 2015

At June 2015 98 98 93 90 38 2

At June 2014 94 97 86 68 20

At June 2013 83 83 71 16

At June 2012 62 50 10

At June 2011 40 28

Management progress in implementing agreed audit recommendations during the period has been adequate, with progress regularly monitored by Internal Audit and reported to the CEO and Audit Committee.

11.4 Media Sentiment

Table 61: Press only Favourable and unfavourable media reports

2013-14 2014-15

Type of report Volume % Volume Volume % Volume

Favourable 876 46% 1,019 51%

Unfavourable 766 40% 153 9%

Neutral 268 14% 772 40%


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Table 62: Main focus of press coverage, 1 July 2014 to 30 June 2015

Focus area Number of reports % of reports Average

FavourabilityFavourable Neutral Unfavourable %Favourable %Neutral %Unfavourable

Civic projects and events

165 111 14 57% 38% 5% 54.6

More local jobs 291 200 32 56% 38% 6% 55.2

Safer suburbs 134 109 17 52% 42% 6% 54.3

City leadership 162 157 36 46% 44% 10% 52.9

Connected communities

116 99 12 51% 44% 5% 53.2

Lower rates 52 17 17 60% 20% 20% 53.2

Better transport 101 63 15 56% 35% 9% 54.2

Total 1,021 756 143 53.9

Table 63: Broadcasts (radio and TV) by focus area

Focus area Number of broadcasts

2013-14 Number of broadcasts

2014-15

Civic projects and events 760 362

More local jobs 591 764

Safer suburbs 581 607

Connected communities 256 364

Better transport 210 310

City leadership 173 301

Lower rates 151 160

Total 2,722 2,868

Electronic media (broadcast) increased in 2014-15 due to improved processes within Corporate Communication allowing the branch to provide more audio/video files for the FM stations and commercial television.

Channel Nine, given its dedicated Gold Coast bureau, led the way with volume of television coverage.

Press coverage across electronic and press was dominated by Local Jobs and City Leadership.

For 1 July 2014 to 30 June 2015 there was a 2 per cent decrease in City Reputation sentiment tracking (56 per cent city favourability rating now at 54 per cent), recorded via iSentia. This is due to commentary from media and city leaders on the State election issues, held in early 2015. Elections, whether local, State or Federal, have an impact on favourability sentiment.


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12. FINANCIAL MANAGEMENT

12.1 Financial Ratios

Table 67: Prescribed Financial Sustainability Ratios

Ratio Target 2012-13 2013-14 2014-15

Operating surplus ratio (%) 0% - 10% (11.2) (5.4) (1.6)

Operating surplus ratio (%) *

(AMPs) 0% - 10% 5.7 10.3

12.6

Net financial liabilities (%) <60% 41.5 35.3 15.8

Asset sustainability (%)

(Depreciation) >90% 24.0 47.5

34.8

Asset sustainability (%) * (AMPs)

>90% 69.9 133.9 105

Leverage (%) <60% 45.6 41.1 15.9

Adjusted Operating Surplus (%) >16% 13.3 19.0 21.6

Debt Service Coverage (times) >2.2 2.1 2.6 2.9

Asset Renewal Funding (%) >90% 100

Asset Consumption (%) 40% - 80% 72 71 72

*Calculated using renewal expenditure from the Asset Management Plan rather than accounting depreciation

Operating surplus ratio

For 2014-15, an operating deficit of $18.4 million was recorded. This continues the trend of improving operating results and therefore, the Operating Surplus Ratio. This result should reduce the five year trend of operating deficits to above -10%, thereby removing Council from the ‘higher risk’ category imposed by the Queensland Audit Office.

Operating surplus ratio (AMPs)

This ratio is the same calculation as the Operating Surplus Ratio except that depreciation expense is replaced with the required renewal expenditure as calculated in Council’s Asset Management Plans. The positive result indicates that Council is raising sufficient revenue to cover operational costs as well as contributing to the capital works program.

Net financial liabilities ratio

This ratio indicates the extent to which we are capable of funding liabilities serviced by our operating revenues. In the context of a household budget, this ratio would indicate whether a homeowner's annual salary plus savings could repay the mortgage and all other debt, assuming no money was spent on anything else during the year. A value of less than 60 per cent indicates that we have the capacity to comfortably fund our liabilities. Council is well under the maximum benchmark.

Asset sustainability ratio

The Asset Sustainability ratio provides an approximation of the extent to which the infrastructure assets managed by Council are being replaced as they reach the end of their useful lives. The accuracy of the ratio is dependent on how well straight-line depreciation represents the decline in condition of assets. The result of this ratio is well under benchmark. However, Council does not rely on this ratio as Asset Management Plans are maintained for each class of infrastructure asset to provide the level of renewals required to keep assets in a condition that maintains accepted service levels.

Asset consumption ratio

This ratio gives an indication of the ‘as new’ value remaining in Council’s infrastructure assets. A result of 72% indicates Council’s assets are still in relatively new condition. This helps to explain why required renewal expenditure in the AMP’s is well below straight line depreciation expense.


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Asset renewal funding ratio

The Asset Renewal Funding ratio is a forward looking ratio comparing forecasted renewal expenditure to the required renewals in the Asset Management Plan. A result of 100% indicates that Council is adequately providing for asset renewals in the long term financial plan.

Leverage ratio

The Leverage ratio measures Council’s ability to cover debt repayments over the long-term. Council is sitting comfortably above the minimum target indicating debt commitments can be met.

Adjusted operating surplus ratio

This ratio the same calculation as the Operating Surplus ratio except that depreciation expense has been removed from the operating result to avoid the ratio outcome being clouded by accounting depreciation. Council is sitting comfortably above the minimum target set by QTC. This is an indication that sufficient operating revenue is being raised to meet expenses.

Debt service coverage

The Debt Service ratio measures Council’s ability to cover debt repayments in the short-term. Council is sitting comfortably above the minimum target indicating debt commitments can be met.

Independent Auditor’s Report

Each year the Queensland Audit Office (QAO) audits the financial report of GCCC and provides an opinion – the Independent Auditor’s Report - as to whether the financial report is free from material misstatement.

Over the last five years, the Independent Auditor has consistently provided the opinion that the financial statements present a true and fair view in accordance with the prescribed accounting standards.

The 2014-15 audit has now been finalised, in which the above opinion is again confirmed.


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12.2 Annual Revenue Forgone

REDACTED

REDACTED


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13. Annexures

13.1 Annex A - Benchmarking Summary

This section provides a summary of the benchmarking information included within this report.

Customer Contact

Table 4: Number of Contact Centre calls, speed of answer and grade of service

2013-14 2014-15

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Calls offered 151,409 91,702 139,031 92,023 127,419 106,692 125,938 102,914

Calls answered 124,821 84,494 108,756 79,993 117,838 99,733 109,271 92,623

Calls abandoned 26,588 7,208 30,275 12,030 9,581 6,959 16,557 10,222Average speed of answer (minutes and seconds)

3:39 1:28 2:39 1:29 1:37 1:14 3:19 2:33

Grade of service 34.24% 54.11% 39.74% 54.52% 56.36% 61.24% 31.02% 38.12% Note: Calls abandoned are calls where the customer hangs up before being answered Grade of Service (GOS) is a universal Contact Centre measurement used to determine the staffing required at any given time to answer calls within an agreed target. Our target is 80 per cent of calls answered within 50 seconds, however this outcome is dependant mostly on customer demand, and staffing available to handle that customer demand.

People Management

a) Gender

Table 15: Gender profile comparison (rounded figures) 30 June 2015 Industry Overall Female

(%) Overall Male

(%) Executive Female

(%) Executive Male

(%) City of Gold Coast 37 63 27 72Queensland Public Service 65 35 32 68Australian Public Service 58 42 - -

b) Age

Table 20: Employees aged 55 years + comparison 30 June 2015 Industry Employees aged 50 years +

(%) Employees aged 55 years + (%)

City of Gold Coast 40.2% 25.7%

Queensland Public Service - 20.5%

Australian Public Service 31.4% -

c) Turnover

Table 23: Employee turnover over by industry sector 1 July 2014 to 30 June 2015 Industry Turnover rate (%)City of Gold Coast 6.8 Queensland Public Service 11.5 Australian Public Service -


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d) Personal leave taken

REDACTED

Work health and safety

a) Average work days lost

REDACTED


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ITEM 12 ORGANISATIONAL SERVICES 2015-16 QUARTER TWO REPORT – RATES AND WATER DEBT MANAGEMENT RV36/188/-(P14) Refer Confidential Attachments 1 - 4 1 BASIS FOR CONFIDENTIALITY 1.1 I recommend that this report be considered in Closed Session pursuant to section

275 (1) of the Local Government Regulation 2012 for the reason that the matter involves:

(h) other business for which a public discussion would be likely to prejudice the interests of the local government or someone else, or enable a person to gain a financial advantage.

2 EXECUTIVE SUMMARY

Not Applicable. 3 PURPOSE OF REPORT This report provides Council with an update of the arrears position of the rates, water and sundry debtor portfolios as at 31 December 2015. It also provides an update of the progress in regard to the debt recovery initiatives currently being trialled but not yet finalised. 4 PREVIOUS RESOLUTIONS

Ex Council Meeting Minute No.GA13.0829.001 (part)

“4 That an outbound dialling service be implemented to contact ratepayers with overdue rates.

8 That a quarterly report be brought to Council through the Governance and Finance Committee regarding outstanding rates.”

Ex Council Meeting Minute No GA14.0501.010 (part)

“4 That Council note that the target percentage for rate arrears to June 2014 is 5.8% and that the target for rate arrears for June 2015 should be below 4%.”

Ex Council Meeting Minute No GA15.0226.006 (part)

“4 That, in accordance with S234 of the Local Government Regulations 2012 Exception for FLA arrangement), Propel Services be engaged until 30 June 2017 to provide outbound debtor contact services conditional upon contract negotiations that are satisfactory to the Chief Executive Officer. 5 That a procurement process be initiated for Debt Recovery Specialist services in

relation to overdue rate and water debt.

6 That the Debt Recovery Specialist trial continue with the current provider until a contract/s for Debt Recovery Specialist Services is in effect.

8 That further information in regard to water flow restriction devices is presented to Council as part of the 4th Quarter Debtor Management report.”


ITEM 12 (Continued) 2015-16 QUARTER TWO REPORT – RATES AND WATER DEBT MANAGEMENT RV36/188/-(P14) 5 DISCUSSION

5.1 Current State

The trialled debt recovery initiatives of the engagement of Debt Recovery specialists and potential use of water flow restriction devices are those initiatives not yet fully implemented.

The operational aspect of the trial of Debt Recovery specialists has concluded successfully. The engagement of service providers is with the Chief Procurement Office to manage the process to engage service providers who can deliver the best value for money level of service.

5.1.1 Rate and Water Arrears As at 31 December 2015, Council finished the quarter with $51.5m unpaid in relation to rates and water accounts. This data shows a reduction of $4.4m to the arrears when compared to 2014-15. The True Arrears percentage also showed a small reduction when compared to the same period last year.

Comparison of Outstanding Balances

as at 31 December

Year Rates Water Total Arrears %

2014-15 $29,754,707 $26,218,873 $55,973,580 8.77%

2015-16 $30,042,142 $21,478,824 $51,520,966 8.34%

The total outstanding in relation to water accounts has significantly reduced when compared to this time last year ($21.4m down from $26.2m). 2014-15 witnessed the move away from half yearly billing to quarterly. The first bill that issued on the quarterly cycle (July 2014) contained two quarters of consumption charges (quarters 3 & 4 from January to June 2014) to accommodate the transition from half yearly billing. The water levies billing as at the end of quarter 2 for last financial totalled $296.5m while for the current year the total of $222.9m has been billed.

$29,754,707 $30,042,142

$26,218,873 $21,478,824

$0

$20,000,000

$40,000,000

$60,000,000

2014‐15 2015‐16

Amount Outstanding as at 31 December

Rates Water


ITEM 12 (Continued) 2015-16 QUARTER TWO REPORT – RATES AND WATER DEBT MANAGEMENT RV36/188/-(P14) A dissection of the Recovery Profile (attachment 2) shows more accounts are at a more advanced recovery step than this time last year. The number of accounts at legal action has dropped however those subject to Sale of Land action has increased greatly. The profile shows a more rapid advancement through the recovery steps this year when compared to last. REDACTED Payment Arrangements were again offered to customers who encountered financial difficulty and were unable remit full payment by the due date. The graphs below show the number and value of payment arrangements for rates and water debtors for the second quarter of this and last financial year.

While the overall number and value of accounts entered into payment arrangements during the second quarter of this financial year reduced when compared to the same period last financial year(-8% in numbers and -21% in value), both the number and value of the rate accounts in payment arrangements increased (15% number and 6% value). The substantial drop for water debtors together with the reduction in water arrears indicates that the introduction of quarterly water billing has had an impact in relation to water accounts being paid by the due date. The graph below shows the comparisons.

3,172 3,650

9,158 7,515

‐

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2014 2015

Number of 2nd Quarter Payment Arrangements

Rates Water

$10,633,279

$6,928,020

$5,430,127 $5,774,858

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

2014 2015

Value ($) of 2nd QuarterPayment Arrangements

Rates Water


ITEM 12 (Continued) 2015-16 QUARTER TWO REPORT – RATES AND WATER DEBT MANAGEMENT RV36/188/-(P14)

5.1.2 Sale of Land

Recently, Council resolved to undertake Sale of Land action on approximately 550 eligible properties. Action in accordance with this resolution has commenced. Arrears in excess of $7.5m are associated with these properties. Service of the Notices of Intention to Sell has been attempted to all debtors. There are still a number of notices that have not been served at the time of writing this report. The date of service will act as the commencement date for the 3 month period during which Council is unable to take Sale of Land action. Following the expiry of the initial 3 month period, Council must take the necessary sale of land action during the next 3 month period. Of the 550 properties resolved, a total of 172 have been withdrawn from the action as payment in full has now been received. An amount in excess of $1.7m has been recovered. 5.1.3 Accounts Receivable - Sundry Debts Sundry debts do not have the security of rates and charges in that the debts are not a debt on the land. As a consequence, taking the appropriate recovery action as soon as possible is an important factor in protecting Council’s revenue. The total amount owing in the Sundry Debtor portfolio has reduced considerably from the previous quarter. As at 30 September, backflow prevention licence accounts had just been issued. The majority of the backflow prevention licence accounts have now been paid which has contributed to the significant reduction in the amount outstanding. The table below shows the aging of the amounts currently outstanding as well as those of the previous quarter together with their proportion of the total outstanding.

15.1%

‐17.9%

‐8.1%

6.3%

‐34.8%

‐20.9%

‐40%

‐30%

‐20%

‐10%

0%

10%

20%

Rates Water Total

Payment Arrangement Variances 2014 to 2015 2nd Quarter

Number Value



SD Accounts as at 31/12/15 SD Accounts as at 30/09/15

Age Number Value % Number Value % Current - not yet due 565 $632,153 16% 4,563 $2,078,854 25% 0-30 Days 475 $1,437,346 36% 725 $3,319,389 40% 30-60 Days 97 $182,708 5% 118 $564,366 7% 60-90 Days 239 $616,374 15% 69 $552,925 7% 90+ Days 862 $1,153,388 29% 1,027 $1,769,314 21%

Total 2,238 $4,021,969 100% 6,502 $8,284,848 100%

Confidential Attachment 3 shows the accounts that remain unpaid for a period greater than 90 days and have a balance greater than $50,000. REDACTED 5.1.4 Accounts Receivable - Sundry Debt Write-offs

The Debt Recovery Policy states that "where it is determined, to the satisfaction of the Director Organisational Services that a debt is irrecoverable or uneconomical to recover, the debt will be written-off. Debts have been written-off in accordance with the above delegated authority. Debts written-off under the delegated authority for the period 1 October to 31 December 2015 are contained in confidential attachment 4. 5.2 Debt Recovery Trials 5.2.1 Engagement of Debt Recovery Specialists In accordance with Council's decision, discussions are ongoing with the Chief Procurement Office in regard the best way to manage this procurement activity. Initially, this activity was to be included as a segment of the tender recently awarded in respect of the panel arrangement for legal services. However, it was considered more beneficial to conduct a stand-alone tender. In order to minimise confusion, it was determined to finalise the legal services tender before placing the debt recovery tender to market. The tender is due to be called shortly. Council’s decision allows for a temporary extension of this service with the current provider until such time as a new contract is in place.


ITEM 12 (Continued) 2015-16 QUARTER TWO REPORT – RATES AND WATER DEBT MANAGEMENT RV36/188/-(P14) 5.2.2 Water Flow Restriction Devices

Discussions are currently underway with Gold Coast Water regarding the trial of restricting water supply as a debt recovery method. Gold Coast Water is currently developing the process related to the physical installation and removal of restriction devices and this process will accompany the Revenue Services administrative activities related to customer notifications. It is expected that the physical trial will commence after 1 July 2016. Reports on the trial will be included in subsequent quarterly reports. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Theme Supporting the delivery of the Gold Coast 2020 B We manage the city responsibly Our stewardship of the city provides value for money for ratepayers 7 COMMONWEALTH GAMES IMPACT

Not applicable

8 FUNDING AND RESOURCING REQUIREMENTS

Within existing approved budget. 9 RISK MANAGEMENT With regard to the water flow restriction device trial, it is proposed that suitably qualified officers operate in pairs when undertaking the installation and removal of water flow restriction devices to minimise risk of damage to person or property. As part of the review process, consideration will be given to the use of external resources should it be determined to continue with this activity. 10 STATUTORY MATTERS The Water and Sewerage Services Code for Small Customers in Southeast Queensland governs the use of water restriction devices for small customers. Other relevant legislation is the Local Government Regulation. 11 COUNCIL POLICIES

Debt Recovery Policy 12 DELEGATIONS

No additional delegations are required 13 COORDINATION & CONSULTATION In the table below, identify how internal and external stakeholders have been involved / participated in the proposal to date and the outcome of that participation.


ITEM 12 (Continued) 2015-16 QUARTER TWO REPORT – RATES AND WATER DEBT MANAGEMENT RV36/188/-(P14) Name and/or Title of the Stakeholder Consulted



Karen O’Brien Manager Business Performance

Gold Coast Water

Yes

Al Whyte Manager Customer Engagement

Gold Coast Water

Yes

Bridget Hollindale A/Coordinator Receivables Management


Yes

Emily Barker A/Supervisor Debtor Management


Yes

14 STAKEHOLDER IMPACTS All rate, water and sundry debtors who fail to make arrangements to satisfy their debt with Council will be pursued in a more expeditious manner. It is anticipated that this action will result in reduction of Council’s arrears position. This would be determined by the end of year arrears percentage.

15 TIMING

Not applicable

16 CONCLUSION Debt recovery action continues in accordance with the adopted Policy. The Sale of Land action commenced recently is expected to realise a significant reduction in the rate and water debt portfolio. Action to advance both the trial of water flow restriction devices and the selection of preferred suppliers of debt recovery services will continue in the forthcoming quarter. 17 RECOMMENDATION It is recommended that Council resolves as follows:

1 That the report and attachments be deemed non-confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2 That Council note that the rate and water arrears position as at 31 December 2015 totals $51.5m which is a reduction of $4.45m (or 4.9%) when compared to the same period in the previous financial year.

3 That Council note the position of outstanding Accounts Receivable (sundry debtors) debts as at 31 December 2015.

4 That Council note the Accounts Receivable (sundry debtors) debts written off for the quarter.

Author

Authorised by:

Leigh Jackson Glen Potter A/Executive Coordinator Revenue Services Director Organisational Services


ITEM 12 (Continued) 2015-16 QUARTER TWO REPORT – RATES AND WATER DEBT MANAGEMENT RV36/188/-(P14) COMMITTEE RECOMMENDATION GA16.0211.012 moved Cr Crichlow seconded Cr Bell 1 That the report and attachments be deemed non-confidential except for those

parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2 That Council note that the rate and water arrears position as at 31 December 2015 totals $51.5m which is a reduction of $4.45m (or 4.9%) when compared to the same period in the previous financial year.

3 That Council note the position of outstanding Accounts Receivable (sundry debtors) debts as at 31 December 2015.

4 That Council note the Accounts Receivable (sundry debtors) debts written off for the quarter.

CARRIED



Attachment 1



Attachment 2

REDACTED



Attachment 3

REDACTED



Attachment 4 REDACTED


ITEM 13 ORGANISATIONAL SERVICES DIRECTORATE REPORT ON 12 MONTH TRIAL OF CREDIT CARD PAYMENTS TO TRUST ITEMS FN338/74/- (P52) 1 BASIS FOR CONFIDENTIALITY 1.1 I recommend that this report be considered in Closed Session pursuant to section

275 (1) of the Local Government Regulation 2012 for the reason that the matter involves other business for which a public discussion would be likely to prejudice the interests of the local government or someone else, or enable a person to gain a financial advantage.

1.2 I recommend that the report be deemed non confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT This report is provided to update Council on the recently completed 12 month trial of the use of credit cards for bonds and developer contributions. 4 PREVIOUS RESOLUTIONS FA98.0716.007 (Part only)

“3 That payment via EFTPOS (credit card) be made available for all Council’s fees and charges (excluding bonds and developer contributions).

G13.0415.002 (Part only)

“1 That Council endorse the transferring of the cost of merchant fees to customers who utilise credit card facilities to make payments to Council, effective from 1 May 2013.”

GA15.0129.010 (Parts 4 and 5).

4 That Council implements a 12 month trial of the use of credit cards for payment of bonds and developer contributions up to the value of $10,000 exclusive of the applicable merchant service fee which is recoverable from the customer (option 4b).

5 A report of the acceptance and usage of credit card payments for bonds and developer contributions be presented to Council as soon as practicable after the conclusion of the trial.


ITEM 13 (Continued) REPORT ON 12 MONTH TRIAL OF CREDIT CARD PAYMENTS TO TRUST ITEMS FN338/74/- (P52) 5 DISCUSSION In January 2015, Council agreed to trial the acceptance of credit cards as a method of tendering payments up to a maximum of $10,000 for trust related activities e.g. bonds and developer contributions. Since the trial commenced, there have been 204 payments totalling $360,216 relating to bonds or developer contributions where the payment has been tendered by credit card. The graph below shows the number of payments received by credit card and split by the amount.

It is interesting to note that 15 payments greater than the $10,000 maximum have been processed during the trial. A review of the majority of these has found that multiple allocations of amounts < $10,000 has been made on a single receipt to multiple trust fund destinations. It should be noted that during this period there were another 617 payments > $10,000 totalling $131.6m. Of these, 20% related to payments between $10k and $20k. A further 33% of these payments related to those between $20k and $50k. The graph below shows this dissection.

< $100, 57, 28%

$100 to $250, 26, 13%

$250 to $500, 25, 12%

$500 to $1,000, 13, 6%

$1,000 to $2,500, 43, 21%

$2,500 to $5,000, 14, 7%

$5,000 to $10,000, 11, 6% >

$10,000, 15, 7%

Number of Trust Payments by Credit Card


ITEM 13 (Continued) REPORT ON 12 MONTH TRIAL OF CREDIT CARD PAYMENTS TO TRUST ITEMS FN338/74/- (P52) CONFIDENTIAL

As the merchant service fee applicable to credit card payments is recovered at the time of payment, the costs associated with processing these transactions are minimal. REDACTED Consultation with various business areas of Council has occurred seeking their views regarding the trial. Only positive feedback has been received regarding the continuation of the service. There was also a request to increase the maximum amount to $100,000. REDACTED 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND OPERATIONAL PLAN We manage the city responsibly Improve customer access to routine, publicly available information online and

availability of on-line services. 7 COMMONWEALTH GAMES IMPACT Not applicable

$10k to $20k, 123 , 20%

$20k to $50k, 204 , 33%

$50k to $75k, 49 , 8%

$75k to $100k, 31 , 5%

$100k to

$150k, 43 , 7%

$150k to $200k, 23 , 4%

> $200k, 144 , 23%

Number of Non Credit Card Payments to Trust Items

> $10,000


ITEM 13 (Continued) REPORT ON 12 MONTH TRIAL OF CREDIT CARD PAYMENTS TO TRUST ITEMS FN338/74/- (P52) CONFIDENTIAL 8 FUNDING AND RESOURCING REQUIREMENTS

Budget/Funding Considerations

No additional operating funding is required – see Section 9 below for risk impacts.

Costs for Capital Works and Service Proposals

Not applicable

People and Culture

Not applicable

9 RISK MANAGEMENT REDACTED he mitigation strategy for the trial was to set a maximum of $10,000. REDACTED 10 STATUTORY MATTERS All relevant requirements of the Payment Cards Industry Data Security Standards have been taken into consideration in compiling this report. 11 COUNCIL POLICIES Not applicable 12 DELEGATIONS DE00987 To determine the acceptance of bank bonds up to the value of $2 million for

uncompleted works bonds provided that there is a concurrent undertaking not to settle or occupy prior to issuance of the Certificate of Classification.

DE00988 To determine the acceptance of a bank bond for a performance bond provided that there is a current bond agreement.

DE01592 To determine the acceptance of bank bonds up to the value of $500,000 for uncompleted works bonds provided that there is a concurrent undertaking not to settle or occupy prior to issuance of the Certificate of Classification. From CEO Sub delegation of 987 Sub delegation of 987 ($2m) - Refer 1593 for $100,000.


ITEM 13 (Continued) REPORT ON 12 MONTH TRIAL OF CREDIT CARD PAYMENTS TO TRUST ITEMS FN338/74/- (P52) CONFIDENTIAL DE01593 To determine the acceptance of bank bonds up to the value of $100,000 for

uncompleted works bonds provided that there is a concurrent undertaking not to settle or occupy prior to issuance of the Certificate of Classification. From CEO Sub delegation of 987 Sub delegation of 987 ($2m) - Refer 1592 for $500,000.

13 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted

Directorate or Organisation Is the Stakeholder Satisfied With Content of Report and Recommendations (Yes/No) (comment as appropriate)

Alisha Swain, Manager City Development

Planning & Environment Yes

Ross Larsen, Infrastructure Planning Coordinator

Planning & Environment Yes

John Kearney, Principal Project Officer


Ross Greenwood, Executive Coordinator Parks


Kylie Rollings, A/Financial Control Support Officer


14 STAKEHOLDER IMPACTS External / community stakeholder Impacts

All credit card payments – including those for bonds and developer contributions - will see the recovery of the Merchant Service Fee (MSF) based on the amount paid – currently 0.6% (i.e. $0.60 for each $100).

The implementation of the appropriate Smartform has facilitated the option to pay by credit card or BPAY.

BPAY offers customers the ability to make payments (by debit card only) direct to the City online using their own financial institution’s BPAY facility.

Customer Service Centres may also accept credit card payments for bonds and developer contributions

Internal (Organisational) Stakeholder Impacts The trial appears to have been well received with over 200 payments being made

during the trial. REDACTED 15 TIMING Any amendments should be made as soon as practicable.


ITEM 13 (Continued) REPORT ON 12 MONTH TRIAL OF CREDIT CARD PAYMENTS TO TRUST ITEMS FN338/74/- (P52) CONFIDENTIAL 16 CONCLUSION The trial period for accepting bonds and developer contributions has now concluded. Over 200 payments totalling over $360,000 have been received REDACTED During the trial, a further 617 payments ($131.6m) were received in regard to payments in excess of $10,000. Over half of these payments (53%) were between $10k - $50k. Increasing the maximum threshold for credit card payments to the recommended $50,000 would provide an additional service option to customers. REDACTED The expanded range of payment methods options has caused minimal disruption to Council’s operations and has provided customers a better customer service. A range of businesses within Council impacted by this payment option have provided positive feedback regarding the continuation of this service and the summarised information is contained in the recommendation. 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That the report and attachments be deemed non-confidential except for those parts

deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2 That Council note the results of the trial.

3 That Council extends the use of credit cards for the payment of bonds and developer contributions up to the value of $50,000 exclusive of the applicable of the merchant service fee which is recoverable from the customer at the time of payment.


Leigh Jackson Glen Potter A/Executive Coordinator Revenue Services Director Organisational Services 29 January 2016

TRACKS REF: 53559141


ITEM 13 (Continued) REPORT ON 12 MONTH TRIAL OF CREDIT CARD PAYMENTS TO TRUST ITEMS FN338/74/- (P52) COMMITTEE RECOMMENDATION GA16.0211.013 moved Cr Owen-Jones seconded Cr Tozer 1 That the report and attachments be deemed non-confidential except for those

parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2 That Council note the results of the trial.

3 That Council extends the use of credit cards for the payment of bonds and developer contributions up to the value of $50,000 exclusive of the applicable of the merchant service fee which is recoverable from the customer at the time of payment.

4 That should a call back amount in excessive of $10,000 occur, the use of credit cards for payment of bonds and developer contributions be immediately reduced to $10,000, and that a report be brought to the next available Governance Administration & Finance Committee Meeting.

CARRIED ITEM 14 GENERAL BUSINESS INTERNATIONAL WOMEN’S DAY FN334/375/02(P41) COMMITTEE RECOMMENDATION GA16.0211.014 moved Cr Bell seconded Cr Crichlow That Council should provide a stage at a cost of $697.50 for International Women’s Day at Via Roma Park, Isle of Capri, on 13 March 2016, a free event open to the public. Funding to be taken from unallocated funds in the Division 7 Local Area Works Budget.

CARRIED


ITEM 15 GENERAL BUSINESS CEO Briefing CLOSED SESSION LOCAL GOVERNMENT ACT 2009 AND SUPPORTING REGULATIONS PROCEDURAL MOTION moved Cr Caldwell seconded Cr Crichlow That the Committee move into Closed Session pursuant to section 275 (1) of the Local Government Regulation 2012, for the consideration of the following item for the reason shown:-

Item Subject Reason

15 CEO Briefing Prejudicial matter

CARRIED

PROCEDURAL MOTION moved Cr Tozer seconded Cr Bell That the Committee move into Open Session.

CARRIED There being no further business the meeting closed at 9.37am.


These Pages

Numbered 1 to 180

Constitute The Report Of The Meeting

Of The Governance Administration & Finance Committee

Held Thursday, 11 February 2016

Documents

Adopted Report Governance Administration & Finance Committee … · 2019. 6. 23. · 712th Council Meeting 16 February 2016 3 Governance Administration & Finance Committee Meeting