Water, Waste and Energy Committee€¦ · That the Report of the Water, Waste and Energy Committee Meeting of Wednesday 22 July 2020, covered by Recommendations numbered WWE20.0722.001

791 Adopted Report

of the

Water, Waste and Energy Committee Meeting

held on

Wednesday 22 July 2020 at

9 am

City of Gold Coast Council Chambers 135 Bundall Road Surfers Paradise

791st Council Meeting 28 July 2020 2 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report

Index 791 Adopted Report

Water, Waste and Energy Committee Meeting Wednesday 22 July 2020

Item Direct. File Page Subject

1 WW CM787/788/06/01(P1) 5 Water, Waste and Energy Committee Forward Planning Schedule

2 WW WSS1125/1227/02(P1) 8 Water and Waste Annual Register of Council Directions

3 WW FN334/252/20(P6) 10 Water and Sewerage Services Financial Performance as at 31 May 2020

4 WW FN334/252/20(P6) 38 Waste Services Financial Performance as at 31 May 2020

Closed Session

5 WW WSS1125(P1) 54 Update on Utility Service Provision Transformation Program – Local Government Platform Stage Three

6 WW LG314/1211/20/047(P1) 65 LG314/1211/20/047 Design Development and Construction of Coombabah Sewage Treatment Plant Stage 6 Upgrade

7# WW HL323/-/-(P7) 76 Waste Management Land Requirements

General Business

# Officer’s recommendation changed at Committee Meeting. KEY: OCEO - Office of the Chief Executive Officer OCOO Office of the Chief Operating Officer EPE - Economy, Planning and Environment OS - Organisational Services LC - Lifestyle and Community TI - Transport and Infrastructure WW - Water and Waste

791st Council Meeting 28 July 2020 3 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ADOPTION BY COUNCIL 28 JULY 2020 RESOLUTION G20.0728.020 moved Cr O’Neill seconded Cr Hammel That the Report of the Water, Waste and Energy Committee Meeting of Wednesday 22 July 2020, covered by Recommendations numbered WWE20.0722.001 to WWE20.0722.007, be adopted with the exception of Recommendation Number WWE20.0722.003 which was specifically resolved.

CARRIED ATTENDANCE Cr G O’Neill (Chairperson) Cr M Hammel Cr PJ Young Cr R Bayldon-Lumsden (absent from meeting 11:30am to 11:33am) Cr R La Castra (absent from meeting 9:45am to 9:54am) (left the meeting 10:15am) Cr G Tozer Cr D McDonald Cr C Caldwell (Visitor) (left the meeting 9:57am) Cr D Gates (Visitor) (absent from meeting 9:10am to 9:15am) Cr Owen-Jones (Visitor) (absent from meeting 11:01am to 11:03 and 11:25am to 11:39am) Cr B Patterson (Visitor) (absent from meeting 11:10am to 11:14am and 11:58am to 12:13pm) Cr PC Young (Visitor) Mr D Dickson (Visitor) (CEO) Mr P Heaton Director Water and Waste Mr R Packer Manager Strategy and Innovation Ms K Baker Manager Service Sustainability Mr C Owen Manager Customer Engagement Ms K O’Brien Manager Business Performance Mr H Ryan Coordinator Rating and Billing APOLOGY / LEAVE OF ABSENCE Nil PRESENTATIONS City-wide Organic Services Roadmap Mr Rod Packer Manger Strategy and Innovation Customer Hardship and Assistance Programs Mr Chris Owen Manager Customer Engagement

791st Council Meeting 28 July 2020 4 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report The information below is extracted from the Procurement Policy and Contract Manual. Refer to the Procurement Policy and Contract Manual for complete details.

Local benefits Business categorisation for local business

For the purposes of competitive local business and industry, businesses supplying Council have been categorised as shown in Table 1 following.

Table 1: Business categorisation for competitive local business and industry

Category Description

A Gold Coast based business

B South East Queensland and Tweed Shire business

C Queensland business

D Australian business

E Overseas business

Applying the local benefit weightings

For contracts where the expected worth is greater than $250,000 where competitive offers are mandatory a minimum of 20 per cent weighting will be included in Council’s capability scoring evaluation criteria. This percentage can be increased in line with the market conditions and procurement strategy developed.

Each procurement activity should consider the opportunity for local benefits as part of the sourcing strategy to identify any opportunity to benefit the local economy.

The local benefits capability score is an aggregated score based on the benefits that can be realised for local suppliers and the local economy. Measures for local benefit:

· Locally sourced services, manufactured or sourced goods · Local employment and local subcontracting · Local growth and development:

o Skills transfer, technology transfer, research and development transfer o Investment in local training, apprenticeships, trainee opportunities,

certifications and capability o Consortiums, joint ventures or strategic partnering with local firms o Participation in the Gold Coast Business Excellence awards and other

industry awards o Commitment to community and social development initiatives o Provision of new local jobs and career development opportunities

Procurement is to be consulted where other local benefit measures are considered with regard to the sourcing strategy developed. Local benefit weighting is determined in parallel with other selection criteria. The measures are scored and averaged to give a total local benefits score. All contracting activity must reflect the most advantageous outcome for local businesses and the local economy.

791st Council Meeting 28 July 2020 5 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 1 WATER AND WASTE WATER, WASTE AND ENERGY COMMITTEE ACTION LIST AND FORWARD PLANNING SCHEDULE CM787/788/06/01(P1)

Proposed Date Subject Action Officers Action

August 2020 Green Waste Management

August 2020 Implementation of a Food Organics Garden Organics (FOGO) Service

Mairead Lenihan/Toni Lee/ Rod Packer

August 2020 Commercial Food Waste Service Mairead Lenihan Rod Packer

August 2020

Review of Kerbside Bin Service Area Sam Atkinson/ Rod Packer

That a review of the kerbside bin service area particularly focusing on unserviced rural residential lots outside of the declared waste collection area be completed and brought back to a future committee meeting.

Petition – Extension of Waste Collection Service in Mudgeeraba (response will be included in “Review of Kerbside Bin Service Area” Agenda Item)

Petition submitted to 789 Council meeting held 27 May 2020. Resolution: G20.0527.035.0527.035 That the above Petition be received and referred to the appropriate committee for consideration and report to Council.

August 2020 Coomera Shores Water and Sewerage Services

Christian Truscott/ Mark Johnson

August 2020 Resource Recovery Services Update Rod Packer

791st Council Meeting 28 July 2020 6 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 1 (Continued) WATER, WASTE AND ENERGY COMMITTEE ACTION LIST AND FORWARD PLANNING SCHEDULE CM787/790/06/01(P1)

Proposed Date Subject Action Officers Action

August 2020

Customer Hardship and Assistance Programs and Related Matters Recommendation: WW18.0823.005 Recommendation: WW19.0429.006

Chris Owen That the Director Water and Waste investigate, along with the rest of Council, the potential framework for improving Customer. Hardship and Assistance Programs. Revised Water and Sewerage Leakage Remission Policy to be brought to Council.

August 2020 Bulky Kerbside Fees and Charges Karen O’Brien That Council note that prior to commencement of charging non-compliant use of bulky kerbside service, a further report will be tabled outlining the fees and charges for inclusion in the 2020-21 Register of Fees and Charges.

September 2020

Waste and Recycling Centres Operational Improvements (operations and access) Council Resolution: G19.0730.023

Mairead Lenihan / Rod Packer

4 A comprehensive communication plan will be developed and brought back to Committee for endorsement outlining the impact of the State Government Waste Levy on the costs and operations of WRCs, and the potential benefits to the City from improved recycling, environmental and operational outcomes.

5 That a further non-confidential report regarding the capital and regulatory options for the Helensvale, Currumbin and Jacobs Well WRCs be brought directly to Council.

RECOMMENDATION It is recommended that Council resolve as follows: That the Action List and Forward Planning Schedule for Water, Waste and Energy Committee be noted. Authorised by: Paul Heaton iSPOT#75297798 Director Water and Waste

791st Council Meeting 28 July 2020 7 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 1 (Continued) WATER, WASTE AND ENERGY COMMITTEE ACTION LIST AND FORWARD PLANNING SCHEDULE CM787/790/06/01(P1) COMMITTEE RECOMMENDATION WWE20.0722.001 moved Cr Tozer seconded Cr PJ Young That the Action List and Forward Planning Schedule for Water, Waste and Energy Committee be noted.

CARRIED

791st Council Meeting 28 July 2020 8 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 2 WATER AND WASTE WATER AND WASTE ANNUAL REGISTER OF COUNCIL DIRECTIONS WSS1125/1227/02(P1)

STANDING AGENDA ITEM: Committee Recommendation: WS14.0430.007 / Council Resolution: G14.0506.025 “That Gold Coast Water establish a standing item on the Water Services Committee Agenda which is a register (and thus an agreed record) of any “directions” that Council gives Gold Coast Water for reporting in the annual operations report.” That is: - a resolution that goes against or substantially modifies the recommendations of the Officers and;

- has a (or potential to have a) material/commercial impact on the business unit. Council Meeting

Council Resolution

Description 2018-19 final

2019-20

That the adopted infrastructure charges are adjusted so that there is a 100% discount for family accommodation dwellings of 100m2 GFA or less for any approvals issued on or after 1 July 2014 through the remainder of this Council’s term. Permanent changes to Adopted Infrastructure Charges Resolution (AICR):

1. Existing building: no infrastructure charges levied for any change in non-residential land use (ongoing).

2. Expansion: for non-residential land uses, up to an additional 50 per cent of GFA or a maximum of 500m², whichever is the lower, will be exempt from infrastructure charges (ongoing).

3. Family accommodation: no charge for family accommodation dwellings of 100m² GFA or less. Family accommodation dwellings greater than 100m² GFA will be charged at 40 per cent of the relevant AICR charge (ongoing).

771 G19.0326.022 4. Not-for-profit community groups: rebates for the water and wastewater networks will be restored, following the return of responsibility to the City (ongoing). Recommendation: WW19.0321.002

$76,473.78

791st Council Meeting 28 July 2020 9 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 2 (Continued) WATER AND WASTE ANNUAL REGISTER OF COUNCIL DIRECTIONS WSS1125/1227/02(P1) RECOMMENDATION It is recommended that Council resolve as follows: That the Water and Waste Annual Register of Council Directions be noted. Authorised by: Paul Heaton iSPOT#43956542 Director Water and Waste COMMITTEE RECOMMENDATION WWE20.0722.002 moved Cr Tozer seconded Cr PJ Young That the Water and Waste Annual Register of Council Directions be noted.

CARRIED

791st Council Meeting 28 July 2020 10 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 WATER AND WASTE WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) Attachment 1: Detailed Income Statement Attachment 2: Concealed Leakage >$10,000 CONFIDENTIAL 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT This report presents the Water, Waste and Energy Committee with the Water and Sewerage Services 2019-20 financial performance as at 31 May 2020. Comparisons are against Council’s March 2020 budget review. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION 5.1 High Level Financial Summary

Table 1 – Water and Sewerage Services - Year to Date Financial Summary

Table 1 presents the financial position for Water and Sewerage Services as at 31 May as 2.0% or $4.95 million below forecast. This is predominantly the result of operating revenue being $8.16 million (1.6%) below forecast.

Actual Revised Budget Var Var

Initial Budget

Revised Budget

31 May 2020 ($M) ($M) ($M) % ($M) ($M)Operating Revenue 493.45 501.61 (8.16) (1.6%) 539.29 545.79Flow -Dependent Expenditure 198.43 201.40 2.97 1.5% 210.00 218.08Operating Revenue net of Flow Dependent Expenditure 295.02 300.21 (5.19) (1.7%) 329.29 327.71Gross Margin 0.64 0.64 0.65 0.64

Total Controllable Operating Expenditure 107.09 105.84 (1.25) (1.2%) 116.94 116.13

Loss on Sale of Assets 2.77 4.17 1.40 33.4% 5.00 5.00

Net Profit before Capital Revenu 185.16 190.20 (5.04) (2.7%) 207.35 206.58

Total Capital Revenue 63.56 63.47 0.09 0.1% 70.00 70.00

EBITDA 248.72 253.67 (4.95) (2.0%) 277.35 276.58

Year to Date Full YearWater & Sewerage Services Financial Summary

791st Council Meeting 28 July 2020 11 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) This is partially offset by: § Flow-dependent expenditure being $2.97 million (1.5%) below forecast, and § Loss on sale of assets being $1.40 million (33.4%) below forecast. Major variances will be discussed in the following paragraphs with a detailed Income Statement contained in Attachment 3.1 to the report. 5.2 Operating Revenue ($8.16 million Unfavourable) 5.2.1 Rates Revenue Financial Summary ($8.91 million Unfavourable)

Table 2 – Water and Sewer Rates Revenue Forecast

Utility Rates revenue is $8.91 million (1.8%) below forecast, with access charges being $2.78 million (1.2%) below forecast and usage charges revenue being $6.13 million (2.4%) below forecast. Access Charges § Year-to-date water access charges revenue recorded is $0.06 million (0.1%) below

forecast. Total water service connections at 31 May 2020 are 269,184, an increase of 1.1% in connections since 30 June 2019.

§ Year-to-date sewerage access charges revenue recorded is $2.84 million (1.7%)

below forecast. Total sewerage service connections at 31 May 2020 are 253,632 representing an increase of 1.2% in connections since 30 June 2019 compared to a forecast increase in connections of 1.7%.

Water & Sewerage Rates Revenue

Actual Revised Budget Var Var

Initial Budget

Revised Budget

31 May 2020 ($M) ($M) ($M) % ($M) ($M)Access Charges

Water 63.72 63.66 0.06 0.1% 69.39 69.39Sew age 165.80 168.64 (2.84) (1.7%) 183.84 183.84

Total Access Charges 229.52 232.30 (2.78) (1.2%) 253.23 253.23

Usage Charges RevenueWater - gross 216.91 220.43 (3.52) (1.6%) 230.14 238.56Sew age - gross 34.95 37.55 (2.60) (6.9%) 40.01 41.58Non Drinking Water 1.12 1.00 0.12 12.0% 1.17 1.08Less: Concealed Leakage (1.97) (1.84) (0.13) (7.4%) (2.50) (2.00)

Total Usage Charges Revenue 251.01 257.14 (6.13) (2.4%) 268.82 279.22

Total Rates Revenue 480.53 489.44 (8.91) (1.8%) 522.05 532.45

Full YearYear to Date

791st Council Meeting 28 July 2020 12 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) Usage Charges Revenue Total Usage Charges revenue is recorded at $6.13 million (2.4%) below forecast as at 31 May 2020. § Year-to-date water usage revenue is below forecast by $3.52 million or 1.6%. The

decrease in usage revenue is due to a 1.4% decrease in demand for the year, as outlined in Section 5.3 below.

§ Year-to-date sewage volumetric revenue is below forecast by $2.60 million or 6.9%.

Due to COVID-19 there has been a significant reduction in non-residential customer water demand which flows directly through to a reduction in sewer volumetric charges.

5.2.2 Other Operating Revenue ($0.77 million Favourable) Other operating revenue is $0.77 million (6.3%) above forecast. Favourable variances include: § Interesting on outstanding rates $0.31 million above forecast due to higher levels of

outstanding accounts. A reduction was taken up in the March budget review as a result of COVID-19 relief package, however higher levels of outstanding accounts that have not entered into payment arrangements have contributed to greater than forecast interest revenue.

§ State Government Contribution towards assets in conflict of $0.29 million. Funding received related to Southport-Burleigh Road and Olsen Avenue and Hope Island Road intersection projects.

§ Other Contribution of $0.12 million as a result of winding up the Alliance Bank account from Coombabah Sewage Treatment Plant Stage 5 Upgrade (project was completed in 2015).

5.3 Flow Dependent Expenditure ($2.97 million Favourable) Bulk Water Purchases ($2.83 million Favourable) Bulk water purchases for the month of May 2020 were below forecast by 222 ML (4.1%), and are 858 ML (1.4%) below forecast on a year to date basis. The decrease in May is due to the impact of COVID-19. With the Government enforced shut downs, there was: § decreased consumption from the tourism sector. § decreased consumption from the non-residential sectors with business closures. § increased consumption from the residential sectors as more people working from

home and increased hand washing. Rainfall for May was 26% of the long term average, with 25.2 mm recorded at the Gold Coast Seaway. Year to date rainfall is 119% of the long term average with 1,363 mm recorded at the Gold Coast Seaway, predominantly over the December to March period.

791st Council Meeting 28 July 2020 13 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) Graph 1 compares water supplied versus the demand forecast adopted for revised budget. Rainfall recorded for the month is also incorporated.

Graph 1 - Analysis of Water Supplied versus Demand Forecast

Electricity ($0.12 million Favourable) Electricity expenses are $0.12 million or 1.1% below forecast. Electricity demand is below forecast at the sewage treatment plants due to drier weather conditions, partially offset by higher than forecast demand within the sewer network. Biosolids Disposal ($0.14 million Unfavourable) Biosolids disposal costs are $0.14 million or 3.3% higher than forecast. Coombabah STP is above forecast due to wet weather conditions over the third quarter resulting in higher tonnages of biosolids being removed. With the wet weather conditions sludge drying beds at the Coombabah STP not being fully utilised, resulting in increased moisture content and a higher mass of biosolids requiring removal from site. The full extent was not known at the time the March Budget review was completed. Chemicals ($0.17 million Favourable) Chemical costs are $0.17 million or 4.8% lower than forecast. Main driver for this favourable variance is the cost of magnesium hydroxide within the sewer network with a new contract being entered into with a lower price.

791st Council Meeting 28 July 2020 14 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) 5.4 Controllable Expenditure ($1.25 million Unfavourable) At a whole of business unit level, Controllable Expenses are $1.25 million (1.2%) above forecast. Major contributing factors to this variance are discussed below. Employee Expenses ($0.16 million Favourable) Employee expenses are $0.16 million or 0.3% below forecast. Operating projects employee expenses are $0.13 million below forecast, delays in the Customer Interruption Network Tool as a result of contractor resourcing issues contributes to the majority of the variance. Materials and Services ($0.49 million Favourable) Materials and services are $0.49 million or 1.8% below forecast due to: § Sewer pump station maintenance actual costs recorded against Fleet and Plant

rather than services, where it was budgeted. § Catchment management operation, water testing and monitoring are below forecast

and items of expenditure are captured against consultants rather than services. § Contribution toward corporate communication support to be processed in June. § Director’s Office safety expenditure is below forecast. This is partially offset by above forecast: § Water and sewer reticulation maintenance cost increased due to increased third party

recoverable works costs and capital items processed through maintenance work orders. A review of the maintenance costs has been performed to identify any capital items and these will be transferred in June. Following this correction it is expected that the water and sewer reticulation maintenance costs shall be in line with forecast.

§ Treatment plant maintenance costs are above forecast. These costs are being reviewed to identify any items which are capital in nature. Appropriate adjustment will be processed in June.

Fleet and Plant ($1.11 million Unfavourable) Fleet and plant is $1.11 million or 14.4% unfavourable. Main contributors are: · Water and sewer reticulation maintenance is above forecast due to the impact of the

wet weather event in the third quarter and an increase in recoverable works as a result of damage to infrastructure by third parties. At the time of preparing the March budget review the extent of the impact on maintenance costs was not known.

· Coombabah STP maintenance costs are above forecast due to equipment costs relating to storm flow lagoon cleanouts.

· Sewer pump station is above forecast due to the impact of the wet weather event in the third quarter of the financial year.

Sewage Treatment Charge ($0.19 million Favourable) Sewage treatment charge is $0.19 million or 5.6% favourable. An allowance of $0.25 million has been provided for exceeding effluent quality and volume limits for treatment of sewage at the Beenleigh STP as part of the Service Level Agreement with Logan City Council. To date over limit charges incurred continue to be lower than forecast.

791st Council Meeting 28 July 2020 15 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) Other Expenditure ($0.56 million Unfavourable) Other expenditure is $0.56 million or 24.5% unfavourable. The majority of the expenditure relates to prior year expenditure that had been written off by Corporate Finance. Upon further investigation, it has been found that costs were incorrectly written off and will be correctly accounted for in June. Consultants ($0.37 million Unfavourable) Consultants are $0.37 million or 13.5% above forecast mainly due to: § Director’s office expenditure on program management and major contracts being

above forecast due to bringing forward of works into 2019-20 as a result of COVID-19.

§ Community partnership expenditure budgeted for as material and services, however costs have been charged against consultants.

5.5 Loss on Asset Disposal ($1.39 million Favourable) Historically there is an increase in asset processing and recognition of asset disposals at the end of the financial year for inclusion in statutory accounts. It is anticipated that this will occur again this financial year and expenditure should come in close to forecast.

791st Council Meeting 28 July 2020 16 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) 5.6 Capital Revenue ($0.01 million Favourable) Developer (cash) contributions are $0.43 million or 1.1% above forecast. Developer contributions are dependent on the level of development activity across the City which fluctuates both across financial years and during the year. Contributed assets are $0.35 million or 1.6% below forecast. Processing of assets increases in the last quarter of the financial year. Similar to developer contributions, contributed assets are dependent on the level of development activity across the City which fluctuates over the year. 5.7 Community Returns Income Tax ($2.18 million Unfavourable) Water and Sewerage Services is a commercialised business unit subject to the Local Government Taxation Equivalents Regime (LGTER). As part of this regime, a Pay As You Go (PAYG) Instalment Activity Statement must be prepared and submitted on a monthly basis, with payment of a PAYG instalment to Council. The current instalment rate as issued by our tax assessors is 6.86%. The instalment rate is applied to total revenue generated to derive the amount of PAYG tax payable each month. At year end, a final taxation return will be prepared, based upon taxable income and utilising the company taxation rate of 30% to calculate total taxation payable for the year. Relevant adjustments will be made to record this annual tax liability to Council. 5.8 Capital Program 5.8.1 Capital Expenditure

The initial and September revised Water and Sewerage Services capital program consisted of 80 projects totalling $147.91 million. The revised budget following the December budget review was $129.21 million comprising of 84 projects. Following the March 2020 budget review, the program reduced to $111.42 million comprising 88 projects.

Table 3 – Capital Expenditure ($‘000’s)

Year to date capital expenditure of $96.02 million represents a variance of 6% below the year to date forecast of $102.65 million.

Product

Actual Expenditure

($M)

RevisedForecast

($M)

Variance($M)

Variance%

Revised Budget Q3

($M)

Revised Budget Q2

($M)

Revised Budget Q1

($M)

InitialBudget

($M)

Sewerage 77.09 83.46 6.36 8% 90.05 103.99 125.36 130.30

Water 18.84 19.11 0.26 1% 21.30 25.13 22.47 17.53

Corporate 0.08 0.08 (0.00) (1%) 0.08 0.08 0.08 0.08

Total Capital 96.02 102.65 6.63 6% 111.43 129.21 147.91 147.91

Water and Sewerage Services Capital Expenditureas at 31 May 2020

Year to Date Full Year

791st Council Meeting 28 July 2020 17 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) Product Variances Sewerage The sewerage program is $6.36 million (8%) below forecast. The following projects are the main contributors to this variance: § Long Term Recycled Water Release Stage 1: $2.95 million below forecast. This

project is below forecast as the marine crossings and connections were slower than originally expected. The approved budget is expected to be fully expended by 30 June 2020.

§ SPS CO13 Vacuum Upgrade: $1.08 million below forecast. This project is below forecast due to a longer than expected design period. This delay is not expected to significantly impact the completion of the project as scheduled in 2020-21.

§ STP Process Tank Renewals 2018-2022: $0.91 million below forecast. This

project is below forecast due to delays experienced during design. Some construction works are expected to carry over into 2020-21.

§ Sewer Pressure Main Renewals 2020-2021: $0.38 million below forecast. This

project is below forecast due to a conflict with construction works and approvals related to the Recycled Water Network Expansion project. Works on a sewer main at Santa Barbara Road have been deferred to 2020-21 to be constructed concurrently with the recycled water main in the same corridor.

Water The water program is $0.26 million (1%) below forecast. The following project is the main contributor to this variance. § Water Analyser System Improvements 2019-20: $0.45 million below forecast. This

project is below forecast due to delays in finalisation of the contract for the purchase and maintenance of the new analysers. This project will carry over into 2020-21.

791st Council Meeting 28 July 2020 18 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) 5.8.2 Status Update – Major Investments Long Term Recycled Water Release Stage 1 Project scope and budget The City’s existing excess recycled water release system at the Seaway is nearing capacity. The Long Term Recycled Water Release Plan aims to provide a city wide solution to cater for excess recycled water to support continued growth and economic development of the City. Stage 1 consists of infrastructure upgrades that increase capacity and allow incremental staging of the ultimate solution to cater for both average and peak recycled water release for the whole of the City. The revised budget for 2019-20 is $36.9 million. Achievements for May § The tunnel boring machine reached the exit shaft on South Stradbroke Island on

27 May – a major milestone for the project after tunnelling 1380m from Quota Park, Biggera Waters.

§ The Nerang River crossing was successfully installed between Waterways Drive, Main Beach and Winchester Street, Southport after a significant exercise including pulling the pipeline through the Broadwater.

Major issues § Although the tunnel boring machine has reached the exit shaft on South Stradbroke

Island, the cause of the cracked pipes is still under investigation and the notice of possible latent condition received from the contractor is yet to be resolved.

Financial Performance

Forecast ($) 36,386,917 Budget ($) 97,190,386

Expenditure ($) 33,438,502 ITD Expenditure ($) 77,675,888

Variance ($) 2,948,415 Remaining ($) 19,514,498

Variance (%) 8% Remaining (%) 20%

Year to Date Whole Project

791st Council Meeting 28 July 2020 19 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) Pimpama to Coombabah Sewage Treatment Plant Release Main Project scope and budget This project includes the design and construction of the first stage of pipeline augmentation works required to transfer excess recycled water from Pimpama Sewage Treatment Plant to Coombabah Sewage Treatment Plant. The proposed infrastructure includes a new 1.67km pipeline from Coombabah Creek to the storage lagoons at the Coombabah Sewage Treatment Plant. The revised budget for 2019-20 is $3.14 million. Achievements for May § Successfully completed connections in three locations. § Reinstatement and defect resolution completed. § Testing confirmed specified concrete strength has been achieved. Major issues § Connection misalignment of 100mm was rectified using a modified fitting. Financial Performance

Forecast ($) 3,096,372 Budget ($) 4,775,510


Variance ($) 56,924 Remaining ($) 100,552


Whole ProjectYear to Date

791st Council Meeting 28 July 2020 20 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) Sandy Creek Industrial Precinct Sewer Project scope and budget This project consists of the construction of approximately 4km of new gravity mains, two new Sewerage Pump Stations at Greyhound Road and Burnside Road, and approximately 1km of new rising mains located in the Stapylton Catchment Area as identified through the Local Government Infrastructure Planning (LGIP) process. The revised budget for 2019-20 is $5.23 million. Achievements for May § Project is ahead of schedule and reinstatement has commenced. § Construction of gravity lines and pressure mains is reaching completion. § Switchboard factory acceptance testing completed. § Civil works at sewerage pumping stations DA11 and DA12 85% complete.

Major issues § Contractor management has been challenging, particularly around contractor

requested variations. Financial Performance

Forecast ($) 4,475,721 Budget ($) 8,655,120


Variance ($) (602,549) Remaining ($) 2,255,730

Variance (%) (13%) Remaining (%) 26%


791st Council Meeting 28 July 2020 21 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) Coombabah Sewage Treatment Plant Stage 6 Upgrade Project scope and budget This project involves the upgrade of Coombabah Sewage Treatment Plant to provide additional treatment capacity to cater for growth and to meet licence requirements. The preferred Stage 6 option involves approximately 120,000 Equivalent Person (EP) augmentation utilising existing biological nutrient removal technology. This includes a new Preliminary Treatment Facility (PTF), new bioreactor and associated clarifiers, disinfection system, waste sludge thickening and dewatering and associated ancillary and support facilities. The revised budget for 2019-20 is $4.48 million. Achievements for May § Technical and commercial evaluation of short listed tenderers is 95% complete. § Construction contract award is anticipated to occur late July 2020.

Major issues No major issues. Financial Performance

Forecast ($) 3,856,023 Budget ($) 144,964,997


Variance ($) 120,556 Remaining ($) 139,897,782



791st Council Meeting 28 July 2020 22 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6)

Pimpama STP Stage 2 Works Project scope and budget This project involves the construction of the Pimpama Sewage Treatment Plant Stage 2 works to accommodate for an additional 71,300 EP growth in the Pimpama Catchment and diverted Stapylton Catchment area as identified through the LGIP process. The major elements of the recommended Stage 2 upgrade includes; inlet works expansion, full phosphorus and nitrogen removal (BNR) activated sludge process, sludge handling upgrade, tertiary treatment to maintain existing water quality and recycled water pump station upgrade. The revised budget for 2019-20 is $1.84 million. Achievements for May § Preliminary design and contract documentation 95% complete. Major issues No major issues. Financial Performance

Forecast ($) 1,688,643 Budget ($) 90,560,767


Variance ($) (179,557) Remaining ($) 88,648,800

Variance (%) (11%) Remaining (%) 98%


791st Council Meeting 28 July 2020 23 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) Elanora STP Digester A and Sludge Heater Refurbishment Project scope and budget This project includes the refurbishment of digester A and replacement of gas pipework, railings, roof seal and digester heaters at Elanora Sewage Treatment Plant (STP) including cleaning and opportunistic replacement of internal mechanical, electrical and civil components. The revised budget for 2019-20 is $4.13 million. Achievements for May § All internal refurbishment of the digester completed. § Replacement Fibre Reinforced Plastic (FRP) roof installed onto the digester. § Electrical switchboard extension completed and electrical works including installation

of cabling of pumps and fabrication and installation of new switchboard ongoing. Major issues No major issues. Financial Performance

Forecast ($) 3,771,095 Budget ($) 6,234,915





791st Council Meeting 28 July 2020 24 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) Long Term Recycled Water Release Elanora Project scope and budget The City’s existing excess recycled water release system at the Seaway is nearing capacity. The Long Term Recycled Water Release Plan aims to provide a city wide solution to cater for excess recycled water to support continued growth and economic development of the City. The Elanora component consists of pump station and pipeline upgrades from the Elanora Sewage Treatment Plant. The revised budget for 2019-20 is $1.05 million. Achievements for May § Tender evaluation continued. Final round of clarifications and invitation to better offer

have been communicated.

Major issues No major issues. Financial Performance

Forecast ($) 884,757 Budget ($) 10,660,599

Expenditure ($) 734,531 ITD Expenditure ($) 995,130




791st Council Meeting 28 July 2020 25 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) 5.9 Other Financial Activities 5.9.1 Community Service Obligations

In accordance with Sections 23 and 24 of the Local Government Regulation 2012:

…The cost of carrying out community service obligations, less any revenue received from performing the obligations must be treated as revenue for the significant business activity. {Section 23} (and) …A community service obligation is an obligation the local government imposes on a business entity to do something that is not in the commercial interests of the business entity to do.

5.9.1.1 Community Service Obligations – Catchment Management Unit Catchment Management Unit protects human health in recreational waters by monitoring the state of the City’s water environments and providing rapid reporting of the health status of primary contact recreation areas. It supports the maintenance of legislated environmental values in the City’s water environments through catchment planning and the implementation of appropriate environmental restoration actions. From 2019-20 financial year, these activities are funded by a combination of a Community Service Obligation (CSO) and the Water and Sewerage Services’ general operating budget. At adoption of Council’s initial budget, the total value of the CSO is $2,116,993 comprising “Catchment Activities” and “SLA for Corporate Services”, as shown in Table 4. This value remains unchanged. The remaining activities outlined in Table 4 are those funded from the Water and Sewerage Services’ general operating budget. CSO Catchment Management activities are progressing in line with expectations. Water and Waste funded activities are below forecast with the main contributors to this under spend being watersafe monitoring and investigation and laboratory testing services.

Table 4 – Catchment Management Unit ($‘000’s)

Catchment Management Unit - Operational

Initial Budget ($)

Revised Budget ($)

YTD Actuals ($)

Spent (%)

Catchment Activities 1,581 1,581 1,438 91.0%SLA for Corporate Services 536 536 492 91.7%Subtotal CSO Funded 2,117 2,117 1,930 91.2%CMU Operations 1,366 1,384 1,099 79.4%Healthy Waterways Contribution 321 321 289 90.2%WaterSafe Monitoring & Investigations 150 70 27 38.2%Laboratory Testing Services 588 518 233 45.1%Community Action Support 193 193 172 89.0%Water Cycle Implementation 107 22 24 110.5%Subtotal Water and Sewerage Funded 2,725 2,507 1,845 73.6%Total 4,842 4,624 3,775 81.6%

791st Council Meeting 28 July 2020 26 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) 5.9.1.2 Community Service Obligations – Energy Management Unit On 1 February 2020, the Energy Management Unit was transferred to the Water and Waste Directorate to combine all of the City’s Essential Services in the one Directorate. The Unit is responsible for the management of electricity across Council, which includes connections, billing and delivery of renewable energy capital works at City facilities.

The following table is a high level overview of the Energy Management Unit budget and performance to date.

Table 5 – Energy Management Unit ($‘000’s)

Energy management operating position is lower than forecast partially due to the electricity charges accrual being higher than the final actual demand. Appropriate adjust will occur in June. Funding for the Capital Program is sourced from the City’s Investment Vehicle and the increase in the revised budget is due to carry over funding drawn down and unspent from prior years. A review of the Unit’s Business model and cost recovery framework methodology is currently underway. Any changes to the model will be implemented in the 2020-21 financial year.

Energy Management Unit - Operational Initial Budget ($)

Revised Budget ($)

YTD Budget ($)

YTD Actuals ($)

Spent (%)

Electricity Charges 0 15,313 14,037 14,124 92.2%Electricity Recoupment 0 (18,483) (16,942) (16,714) 90.4%Labour 678 678 625 621 91.7%Administration 177 399 365 305 76.5%Total 854 (2,093) (1,914) (1,663) 79.5%

Energy Management Unit - Capital Initial Budget ($)

Revised Budget ($)

YTD Budget ($)

YTD Actuals ($)

Spent (%)

60024 - Street Lighting Pilot Project, Surfers P 0 476 436 102 21.5%60025 - Solar Gener Project, GC Aquatic Centre 0 0 0 0 0.0%60026 - Energy Gen Infrast Comm Venues 258 640 586 155 24.3%60027 - Energy Gen Infrast Sport Clubs 0 160 146 5 3.4%60028 - Energy Gen Infrast GC Aquatic Centre 0 349 320 0 0.0%60029 - Energy Gen Infrast Aquatic Centres 657 1,083 992 9 0.8%60030 - Energy Gen Infrast Libraries 948 1,345 1,233 15 1.1%60031 - Energy Gen Infrast Amenities 400 910 834 3 0.3%60032 - Energy Gen Infrast OS Admin Sites 285 1,268 1,162 193 15.2%60033 - Energy Gen Infrast Depots 285 891 817 4 0.4%60086 - Energy Gen GC Sports & Leisure Carrara 0 700 642 1 0.1%60000 - Robina Auditorium 0 40 37 9 22.0%60034 - Energy Gen Infrast LED 110 279 255 43 15.4%60035 - Energy Gen Infrast GC Aquatic Heat Pump 0 750 688 173 23.1%60082 - Lighting Replacement - Miami Pool 0 0 0 0 0.0%60085 - Energy Mitigation - Batteries 400 400 367 136 34.1%60089 - GC Sports & Leisure Ctr - AC EMU 0 0 0 49 0.0%60090 - Nerang Aquatic Ctr Renew pool heat pumps 0 0 0 7 0.0%60091 - Miami AC Renew pool heat pumps 0 0 0 0 0.0%60092 - Palm Beach AC Renew pool heat pumps 0 106 97 0 0.5%Total Expenditure 3,344 9,395 8,612 906 9.6%Capital Funding (1,081) (5,945) (5,945) 0 0.0%Net Capital Expenditure 2,263 3,450 2,667 906 26.3%

Total Energy Management Unit 3,117 1,357 753 (758) (55.8%)

791st Council Meeting 28 July 2020 27 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) Commencing in 2020-21 financial year, a separate financial report will be tabled outlining the operations and performance of the Unit. 5.9.1.3 Community Service Obligations – Infrastructure Charges Waivers Detailed information is not currently available with regard to the permanent discounting of infrastructure charges for “existing buildings”, “expansion” and “family accommodation” development applications. For the 2019-20 year to date, no foregone revenue in the form of waived infrastructure charges under the City’s Non-Profit Community Group Rebate system has been identified. 5.9.2 Water and Sewage Leakage Relief The objective of this policy is to ensure uniform and transparent application of relief from water consumption charges and sewage volumetric charges in cases of proven concealed leakage. Revenue Services administers the Policy on behalf of the City. Table 5 provides summary level detail of the leakage remissions approved to 31 May 2020. A total of 351 approvals were processed during the month of May, with paid remissions totalling $0.23 million. For the year to date, there are twenty one remissions greater than $10,000 which total $0.35 million or 17.6% of total remissions. Details of those remissions are contained within [Confidential] Attachment 3.2. The initial annual budget for concealed leakage remissions was $2.50 million and was reduced at the March budget review to $2.00 million. Remissions paid to May 2020 are 7.4% above forecast. With the introduction of rolling billing, we are receiving on average between 250-300 applications per month. There were resourcing and processing constraints within Revenue Services which resulted in a decline in the number of approvals processed between October and February. These constraints have been addressed and applications in the backlog are being processed.

Table 5 – Summary of Concealed Leakage Remissions

MonthNumber

of Approvals

Total Leak Volume (kl)

Average Loss per

Account (kl)

Water Remission

Value ($'000)

Sewer Remission

Value ($'000)

Total Remission

Value ($'000)

Jul-19 210 71,965 343 119 29 149 Aug-19 345 136,128 395 245 61 306 Sep-19 273 109,869 402 176 47 223 Oct-19 184 69,380 377 121 30 152 Nov-19 148 49,094 332 88 25 114 Dec-19 111 34,961 315 59 40 99 Jan-20 159 50,759 319 88 52 140 Feb-20 178 39,104 220 73 25 99 Mar-20 223 83,705 375 134 64 198 Apr-20 316 121,536 385 249 15 264 May-20 351 106,972 305 203 30 233 Total 2,498 873,473 350 1,556 418 1,974 Budget provided for year 1,500 500 2,000 Proportion of budget approved to date 103.7% 83.7% 98.7%

791st Council Meeting 28 July 2020 28 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) Table 6 illustrates that 87.5% of applications approved to date relate to residential customers, representing 56.0% of the value of remissions provided.

Table 6 – Summary of Concealed Leakage Remissions by Customer Type and Product

Graph 2, depicts the value of remissions provided over the past six years, compared to the value provided to date for 2019-20. Resourcing issues significantly impacted the processing of remission applications in 2015-16, which is the main driver for the very low value processed in that year. The 2019-20 year represents the first year of rolling billing. The policy is due for renewal and will be presented to Council this year.

Graph 2 – Concealed Leakage Remissions Paid

Customer Type Total Leak

# % Volume (kl)

Water ($'000)

Sewer ($'000)

Total ($'000) %

Residential Customers Owner Occupied premises 1,622 64.9% 394,132 892 892 45.2% Rental/Tourist Rental premises 563 22.5% 155,134 213 213 10.8%Total Residential Customers 2,185 87.5% 549,266 1,105 - 1,105 56.0%Non-Residential Customers 313 12.5% 324,187 451 418 869 44.0%

2,498 100.0% 873,453 1,556 418 1,974 100.0%Proportion of Total Remissions 78.8% 21.2%

Approvals Value of Remissions Provided

791st Council Meeting 28 July 2020 29 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) 5.10 Future Budgetary Trends As outlined in the report, the only significant budgetary trend is in relation to reduced demand. This has an impact on: § Reduced Bulk Water Purchases § Reduced Water Usage Revenue § Reduced Sewer Volumetric Revenue. The impact of COVID-19 on Water and Sewerage Service financial position is continually being monitored. Any significant impacts have been highlighted within the report. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Not Applicable. 7 FUNDING AND RESOURCING REQUIREMENTS Not Applicable. 8 RISK MANAGEMENT The following risk assessment applies to this report: Risk Number Description

Risk No. CO000435

Failure to achieve a sustainable long term financial position leading to negative impacts on Council’s ability to deliver on its key focus area commitments.

9 STATUTORY MATTERS Not Applicable. 10 COUNCIL POLICIES The following policies have been taken into account when preparing this report: § Gold Coast Water Capital Structure and Community Returns Policy. § Revenue Policy. § City of Gold Coast Budget Review Policy. § Water and Sewage Leakage Relief Policy. 11 DELEGATIONS Not Applicable.

791st Council Meeting 28 July 2020 30 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) 12 COORDINATION AND 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)

Stephen Mollard Coordinator Financial Management

Office of the OCOO Yes

13 STAKEHOLDER IMPACTS Not Applicable. 14 TIMING Not Applicable. 15 CONCLUSION Water and Sewerage Services Earnings before Interest and Tax (EBIT) for the period to 31 May 2020 is 2.6% or $4.24 million below forecast. This is predominantly the result of operating revenue being $8.16 million (1.6%) below forecast. This is partially offset by: § Flow-dependent expenditure being $2.97 million (1.5%) below forecast, and § Loss on sale of assets being $1.40 million (33.4%) below forecast. Water and sewerage services continued to operate as normal through the COVID-19 crisis. To date there has been only minor impacts on operations such as: § Decrease in customer water demand. Reduced demand impacts on both bulk water

purchases and usage revenue. Further there has been an adjustment in the residential vs non-residential consumption split (increase in residential and decrease non- residential).

§ Increase in customer payment arrangement being entered into (hardship). § Delays in capital expenditure due to resource (people and equipment) constraints. Performance is continually monitored to ensure that controllable expenditure is minimised. This is achieved through rigorous internal processes which include the detailed review of all projects to ensure that only prudent and efficient expenditure is incurred.

791st Council Meeting 28 July 2020 31 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) 16 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Attachment 2 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 notes the Water and Sewerage Services Monthly Financial Report for the period ended 31 May 2020.

Author: Authorised by: Karen O’Brien Paul Heaton Manager Business Performance Director Water and Waste 15 June 2020 TRACKS REF: #76647394

Conflict of Interest – Cr Gates Pursuant to section 175E(2) of the Local Government Act 2009, I would like to inform the meeting that I have a personal interest in this matter, which I recognise may be a real or perceived conflict of interest the particulars of which are as follows: The nature of the interest is: Receipt of Donation The name of the person or entity is: Rayjon Properties The nature of the relationship is: Donor The value and date of the donations are: $2500 18 September 2015

$2500 4 October 2016 The nature of the other person’s interest in the matter is: The donor is mentioned on Page 33 of the confidential attachment. I will now leave and stay away from the meeting so that the matter may be discussed and voted on in my absence. Cr Gates left the meeting.

791st Council Meeting 28 July 2020 32 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) Conflict of Interest – Cr Owen-Jones Pursuant to section 175E(2) of the Local Government Act 2009, I would like to inform the meeting that I have a personal interest in this matter, which I recognise may be a real or perceived conflict of interest the particulars of which are as follows: The nature of the interest is: Receipt of Donation The name of the person or entity is: Rayjon Properties The nature of the relationship is: Donor The value and date of the donations are: $10,000 October 2011 The nature of the other person’s interest in the matter is: The donor is mentioned on Page 33 of the confidential attachment. I will now leave and stay away from the meeting so that the matter may be discussed and voted on in my absence. Cr Owen-Jones left the meeting.

Committee Recommendation Adopted at Council 28 July 2020 COMMITTEE RECOMMENDATION WWE20.0722.003 moved Cr Hammel seconded Cr La Castra 1 That Attachment 2 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.


CARRIED

Cr Gates and Cr Owen-Jones were absent for the vote. Cr Gates and Cr Owen-Jones returned to the meeting.

791st Council Meeting 28 July 2020 33 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6)

Council Meeting 28 July 2020

RESOLUTION G20.0728.019 moved Cr Tozer seconded Cr PJ Young That Committee Recommendation WWE20.0722.003 be adopted as printed which reads as follows:- 1 That Attachment 2 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.


CARRIED Cr Vorster voted in the positive. Cr Owen-Jones and Cr Gates were absent for discussion and voting on this matter. Cr Owen-Jones and Cr Gates returned to the room.


Attachment 3.1 Financial Management Report – 31 May 2020

Full YearAct Revised

BudgetVar Var Initial

BudgetRevised Budget

31 May 2020 $000's $000's $000's % $000's $000'sRevenueAccess Charges 229,511 232,302 (2,791) (1.2%) 253,231 253,231Usage Charges Revenue 252,976 258,983 (6,007) (2.3%) 271,313 281,214Less: Concealed Leakage (1,974) (1,838) (136) (7.4%) (2,500) (2,000)Interest on Outstanding Rates 1,798 1,492 306 20.5% 1,858 1,628Interest on Investments 6,298 6,298 - 0.0% 11,177 6,870Fees and Charges 4,841 4,376 465 10.6% 4,214 4,845Total Operating Revenue 493,449 501,613 (8,164) (1.6%) 539,293 545,787Operating ExpenditureFLOW-DEPENDENT EXPENDITUREBulk Water Purchases 179,882 182,711 2,829 1.5% 189,846 197,630Electricity 10,719 10,834 115 1.1% 11,643 11,823Biosolids Disposal 4,449 4,307 (142) (3.3%) 4,657 4,757Chemicals 3,380 3,550 170 4.8% 3,853 3,873Total Flow-Dependent Expenditure

198,430 201,401 2,971 1.5% 209,999 218,083

Operating Revenue net of Flow-dependent Expenditure

295,020 300,212 (5,193) (1.7%) 329,293 327,704

Gross Margin 0.6 0.6 0.6 0.6

CONTROLLABLE EXPENDITUREEmployee Expenses 46,991 47,152 160 0.3% 51,946 51,062Materials and Services 25,727 26,212 485 1.8% 29,686 29,197Council Corporate SLAs 18,738 18,738 (0) (0.0%) 20,441 20,441Internal Directorate SLA (4,220) (4,220) - 0.0% (4,603) (4,603)Fleet and Plant 8,881 7,762 (1,119) (14.4%) 8,523 8,478Sew age Treatment Charge 3,289 3,483 194 5.6% 4,550 3,800Insurance Premiums 1,703 1,703 (0) (0.0%) 1,858 1,858Other Expenditure 2,861 2,298 (563) (24.5%) 1,800 2,500Consultants 3,076 2,710 (365) (13.5%) 2,598 3,260Regulatory Expenses 41 0 (41) 0.0% 143 143Total Controllable Expenditure 107,086 105,837 (1,249) (1.2%) 116,940 116,134Total Operating Expenditure 305,516 307,238 1,722 0.6% 326,939 334,217

Loss on Sale of Assets 2,773 4,167 1,393 33.4% 5,000 5,000

Net Profit before Capital Revenue 185,160 190,208 (5,048) (2.7%) 207,353 206,570

Capital RevenueDevelopers Contributions 41,684 41,250 434 1.1% 40,000 45,000Contributions and Donations Received 1 0 1 0.0% 0 0Contributed Assets 21,876 22,222 (346) (1.6%) 30,000 25,000Total Capital Revenue 63,561 63,472 88 0.1% 70,000 70,000

EBITDA 248,721 253,681 (4,960) (2.0%) 277,353 276,570

Depreciation 90,951 91,667 716 0.8% 95,500 100,000

EBIT 157,770 162,014 (4,244) (2.6%) 181,853 176,570Interest Expense (QTC Loan) 2,020 2,020 (0) (0.0%) 2,204 2,204Interest Margin Expense 808 808 0 0.0% 881 881Shareholder Interest Expense 81,422 81,422 - 0.0% 88,824 88,824Income Tax Equivalents 36,447 34,268 (2,178) (6.4%) 35,793 37,250NPAT 37,073 43,496 (6,422) (14.8%) 54,151 47,410

Contribution - Whole of City projects

12,833 12,833 0 0.0% 22,000 14,000

Retained earnings impact after participation return

24,240 30,662 (6,422) (20.9%) 32,151 33,410

Year to DateWater & Sewerage Services Income Statement


Attachment 3.2 (pages 35 - 37) has been redacted due to confidential content.


ITEM 4 WATER AND WASTE WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) Attachment 1: Detailed Income Statement 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT This report presents the Water, Waste and Energy Committee with Waste Services 2019-20 financial performance as at 31 May 2020. Comparisons are against Council’s March 2020 budget review. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION 5.1 High Level Financial Summary

Table 1 - Waste Services - Year to Date Financial Summary

Table 1 presents the financial position for Waste Services as at 31 May 2020 as $1.49 million (5.2%) above forecast. This is the result of: § Operating revenue being $1.86 million (1.9%) ahead of forecast. § Operating expenditure being $0.05 million (0.1%) ahead of forecast. Loss on sale of assets was not included in revised budget and $0.32 million relates to:

§ A parcel of land resumed by the Department of Transport and Main Roads for road

widening. § A pump on the Stapylton landfill, which has been disposed of. § Disposal of pavement, kerb and channel at the closed Pimpama Transfer Station. Major variances will be discussed in the following paragraphs with a detailed Income Statement contained in Attachment 4.1 to the report.

ActualRevised Budget Var Var

Initial Budget

Revised Budget

31 May 2020 $M $M $M % $M $MOperating Revenue 102.35 100.49 1.86 1.9% 116.36 110.08

Operating Expenses 71.79 71.74 (0.05) (0.1%) 88.06 81.57

Total Operating Profit 30.56 28.75 1.81 6.3% 28.30 28.51

Loss on Sale of Assets 0.32 0.00 (0.32) 0.0% 0.00 0.00

EBITDA 30.24 28.75 1.49 5.2% 28.30 28.51

Year to Date Full YearWaste Services Financial Summary


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) 5.2 Operating Revenue ($1.86 million favourable) Operating revenue is $1.86 million ahead of forecast and is influenced by the following: § Gate Fees ($1.16 million favourable): The increased revenue is as a result of:

· Revenue received from the City’s Transport and Infrastructure (T&I)

Directorate, is higher than forecast. The budget was increased in March to account for higher volumes, however revenue is still exceeding forecast due to increased maintenance and capital activity across the City.

· Waste Collection revenue for the City’s buildings and services is higher than forecast. An adjustment was made in the March Budget Review due to COVID-19, however most services were reduced and not cancelled as was originally forecast.

· Higher than forecast commercial customer revenue. The revenue budget was

reduced during the year due to a competitor opening up near the Stapylton Landfill, reducing volumes taken at the Landfill. However, the volume reduction has not been as significant as forecasted.

§ Waste Levy Receipts ($0.25 million favourable): Revenue received from City

activities (external to the Water and Waste) are tracking ahead of forecast. This is primarily in relation to higher volumes received from T&I, as outlined above.

§ Fees and Charges ($0.21 million favourable): This variance relates to revenue received for the Right for Service payments from JJ Richards for new kerbside bins. This budget is difficult to estimate and is impacted by the ability to reuse bins obtained following promotions. The majority of the variance is due to the replacement of 360L waste bins which historically were not budgeted for due to maturity of data. With improvements in this space, it will be accounted for in future budget review.

§ Recycling Revenue (0.27 million favourable): This variance predominately relates to revenue from:

· Scrap steel sales. As a result of COVID-19 events the commodity price for scrap metal has dropped and the budget was adjusted by $0.5 million; however Municipal Solid Waste (MSW) volumes were higher than forecast.

· Container Refund Scheme. Revenue relating to the October – December 2019 period was higher than anticipated. Forecasting this revenue stream has been difficult due to challenges in obtaining the data from the service provider.


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) 5.2.1 Number of Waste Collection Bins in Service Table 2 presents the number of waste collection bins in service as at 31 May 2020. A customer may have multiple services of a bin on a weekly basis. As a result of COVID-19 event many Commercial Customers suspended their services, however in most cases the bin/s remained onsite, resulting in only a minor decrease in the number of bins in service. Where a customer has requested to suspend their services, appropriate adjustments to accounts have been made, and if requested, a refund provided.

Table 2 - Waste Collection Bins in Service

Waste collection bins Bins in service as at 31/05/2020

Bins in service as at 30/06/19

Bin increase\ (decrease) %

General waste (weekly)Domestic w heelie bins 195,492 193,369 2,123 1.1%Commercial w heelie bins 7,069 7,192 (123) -1.7%Bulk bins (domestic and commercial) 3,083 3,012 71 2.4%Total weekly general waste services 205,644 203,573 2,071 1.0%Recyclable waste (weekly) Commercial w heelie bins 396 423 (27) -6.4%Bulk bins (domestic and commercial) 1,678 1,608 70 4.4%Total w eekly recyclable w aste services 2,074 2,031 43 2.1%Recyclable waste (fortnightly)Domestic w heelie bins 187,775 185,271 2,504 1.4%Commercial w heelie bins 2,693 2,589 104 4.0%Total fortnightly recyclable waste services 190,468 187,860 2,608 1.4%Other (fortnightly)Green w aste 39,461 30,841 8,620 27.9%Total fortnightly other services 39,461 30,841 8,620 27.9%Food waste (weekly)Bulk bins (domestic and commercial) 40 45 (5) -11.1%

Year to Date


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6)

5.3 Operating Expenditure ($0.05 million unfavourable) At a whole business unit level, operating expenses are $0.05 million (0.1%) above forecast. Major contributors to this variance are discussed below.

§ Materials and Services ($0.20 million favourable): This variance predominantly

relates to Concrete Crushing. The previous contract expired in December 2019 and a new tender is due to be awarded in June with work set to resume immediately.

§ Waste Collection Payments ($0.59 million favourable): This variance relates to the Bulky Kerbside Collection service. The new ‘on-demand’ service commenced in January 2020, with approximately 8,000 customers taking up the offer. There are approximately 2,500 customers yet to complete the full cycle of service (delivery of Flexiskip and subsequent collection of bag) due to supply chain issues, which has resulted in a backlog of services as the Flexiskip has been unable to be provided.

§ Waste Levy Payments ($0.45 million unfavourable): Waste Levy payment is the net of monthly Waste Levy Payment to the State Government and Waste Levy Up Front Payment (Rebate) received from the State Government for Municipal Solid Waste (MSW). A full reconciliation of the waste levy payments will be completed as part of end of year activities.

§ Fleet and Plant ($0.24 million unfavourable): This variance is driven by pricing changes applied by the City’s Fleet and Plant business. Water and Waste continues to work with the City’s Fleet and Plant branch to realise efficiencies through truck movements and plant operations to ensure that costs are minimised by operational areas.

§ Employee Expenses ($0.25 million unfavourable): This variance relates to labour

costs across the Waste and Recycling Centres. The sites run on limited staff, and it is difficult to estimate the cost of contingent labour during the year.

5.4 Capital Program The initial and September revised Waste Services capital program consisted of 15 projects totalling $13.48 million. The revised budget following the December budget review was $11.97m comprising of 14 projects. Following the March 2020 budget review, the program reduced to $9.10 million comprising 14 projects.

Table 3 – Capital Expenditure ($ Million)

ProductActual

Expenditure ($M)

RevisedForecast

($M)

Variance($M)

Variance%

Revised Budget Q3

($M)

Revised Budget Q2

($M)

Revised Budget Q1

($M)

InitialBudget ($M)

Landfills 4.13 5.45 1.32 24% 6.80 7.68 8.93 9.47

Waste and Recycling Centres 1.24 1.76 0.52 29% 2.30 4.29 4.55 4.01

Total Capital 5.37 7.21 1.84 25% 9.10 11.97 13.48 13.48

Full Year

Waste Services Capital Expenditureas at 31 May 2020

Year to Date


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) Year to date capital expenditure of $5.37 million represents a variance 25% below the year to date forecast of $7.21 million. The following projects are the main contributors to the variance: § Reedy Creek Landfill Cell 3 and 4: $0.46 million below forecast. This project is

behind forecast due to the re-establishment of the contractor to site following the finalisation of the revised scope of works. Whilst the project has been significantly delayed, construction works recommenced on site in April 2020, and it is anticipated that the allocated budget will be fully expended this financial year. The project will continue into 2020-21with project completion scheduled for August 2020.

§ Suntown Landfill EPO Mitigation: $0.33 million below forecast. This project is

behind forecast due to delays with development of the final scope for delivery. Some construction works will carry over into 2020-21.

§ Reedy Creek Landfill Sewer Connection: $0.29 million below forecast. This

project is behind forecast as a result of delays relating to manufacture and supply of the package pump station.

5.5 Status Updates - Major Investments The following major investments have been identified for delivery in 2019-20. 5.5.1 Reedy Creek Landfill Cells 3 and 4 Program scope and budget The Environmental Authority for the Reedy Creek Landfill requires that all landfill cells have an appropriately designed and constructed landfill liner system to provide adequate protection against possible environmental impacts such as contamination of local ground water by landfill leachate. This project involves staged construction of cells 3 and 4 at Reedy Creek landfill including bulk earthworks, liner system and associated leachate drainage system. The revised budget for 2019-20 is $3.68 million. Achievements for May § Earthworks on the floor of cells 3 and 4, northern and eastern batter slopes and

access road continues. § Dewatering and desilting of the sediment pond completed. § Delivery of geosynthetic clay liner.

Major Issues § Some minor rain events resulting in construction delays.




5.5.2 Stapylton Landfill Main Access Upgrade Program scope and budget A Master Plan for Stapylton Landfill was developed in 2017-18 which included recommendations to reconfigure the access road network and to replace the existing wheel wash system. This project involves upgrading the site entry road infrastructure at Stapylton Landfill, including the installation of a new wheel wash to enable improved traffic management and compliance with environmental regulations. The revised budget for 2019-20 is $0.77 million. Achievements for May § Detailed design continued, incorporating stakeholder comments and requests.

Major Issues § Design changes identified during the detailed design of the wheel wash facility to

incorporate operational requirements will lead to variations to the project budget. These are being worked through by the project delivery team.


Forecast ($) 2,749,088 Budget ($) 5,612,393





Forecast ($) 768,000 Budget ($) 3,670,215

Expenditure ($) 705,458 ITD Expenditure ($) 2,456,673





ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) 5.5.3 Waste and Recycling Centre Bin Bay Upgrades Program scope and budget This project involves the upgrade of bin bays at Helensvale to address operational and safety concerns. The program of works aims to eliminate manual handling issues associated with the current configuration of bin flaps, minimise the risk of damage to bin bay infrastructure and streamline the delivery and removal of bulk bins within the facilities. The revised budget for 2019-20 is $0.71m with only Helensvale being delivered this financial year. Achievements for May § Construction works commenced on site. § Upgrades to bin bays 9, 10 and 11 have been completed.

Major Issues No major issues. Financial Performance

Forecast ($) 402,702 Budget ($) 3,332,482






ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) 5.5.4 Waste and Recycling Centres and Landfills CCTV Renewal Program scope and budget This project proposes to renew and upgrade the CCTV, bodycams and communications network at all Waste and Recycling Centres (WRCs) and landfill weighbridges to improve safety, security, and operational outcomes. The revised budget for 2019-20 is $0.15 million. Achievements for May § Works to audit WRC and landfill assets continue, to ensure asset registers accurately

reflect the assets installed at each site.

Major Issues § Delays due to COVID-19 have resulted in a realignment of schedule and budget, with

the deferral of construction works to 2020-21.


Forecast ($) 130,837 Budget ($) 1,811,321






ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) 5.5.5 Reedy Creek Landfill Sewer Connection Program scope and budget This project proposes to provide a permanent solution to managing the leachate from the Reedy Creek Landfill as a prudent alternative to the current costs of leachate transport by tanker trucks and off-site treatment. The design and construction of the sewerage infrastructure will transfer the leachate from the Reedy Creek Landfill to the sewerage network. The revised budget for 2019-20 is $1.30 million. Achievements for May § Pipe laying and manhole construction is ahead of schedule.

Major Issues § Delays are being experienced relating to the manufacture and supply of the package

pump station. Financial Performance

Forecast ($) 1,141,102 Budget ($) 1,408,695


Variance ($) 285,806 Remaining ($) 444,705




ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) 5.5.6 Stapylton Landfill Sediment Basin Program scope and budget This project involves the design of a stormwater sedimentation basin to ensure the existing stormwater infrastructure at Stapylton landfill is capable of managing stormwater runoff from disturbed areas of the landfill so as to comply with the facility's Environmental Authority. Construction related to this project will be undertaken with the construction of cells 7 and 8 at Stapylton landfill. The revised budget for design works in 2019-20 is $0.10 million. Achievements for May § Detailed design works are 90% complete, with final completion expected in June

2020.

Major Issues No major issues.


Forecast ($) 100,000 Budget ($) 4,035,095






ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) 5.6 Community Returns 5.6.1 Income Tax ($2.90 million Unfavourable) Waste Services is a commercialised business unit subject to the Local Government Taxation Equivalents Regime (LGTER). As part of this regime, a PAYG Instalment Activity Statement must be prepared and submitted on a monthly basis, with payment of a PAYG instalment to Council. The current instalment rate as issued by our tax assessors is 7.32%.The instalment rate is applied to total revenue generated to derive the amount of PAYG tax payable each month. At year end, a final taxation return will be prepared, based upon taxable income and utilising the company taxation rate of 30% to calculate total taxation payable for the year. Relevant adjustments will be made to record this annual tax liability to Council. 5.7 Community Service Obligations In accordance with Sections 23 and 24 of the Local Government Regulation 2012:

…The cost of carrying out community service obligations, less any revenue received from performing the obligations must be treated as revenue for the significant business activity. {Section 23} (and)

…A community service obligation is an obligation the local government imposes on a business entity to do something that is not in the commercial interests of the business entity to do.

Table 4 provides a summary of the Community Service Obligations (CSO) currently provided within Waste Services, together with the annual expenditure budget and actual year-to-date expenses incurred for delivery of those CSOs. Revenue for these CSOs is recognised on a monthly basis throughout the year, with revenue recognised to May of $2.79 million.



Table 4 – Community Service Obligations - 2019-20 financial year

5.8 Future Budgetary Trends There are no significant future budgetary trends that will impact on financial performance. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Not Applicable. 7 FUNDING AND RESOURCING REQUIREMENTS Not Applicable. 8 RISK MANAGEMENT The following risk assessment applies to this report: Risk Number Description

Risk No. CO000435

Failure to achieve a sustainable long term financial position leading to negative impacts on Council’s ability to deliver on its key focus area commitments.


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) 9 STATUTORY MATTERS Not Applicable. 10 COUNCIL POLICIES § Debt Policy. § Revenue Policy. § City of Gold Coast Budget Review Policy.

11 DELEGATIONS Not Applicable. 12 COORDINATION AND CONSULTATION

Name and/or Title of the Stakeholder Consulted



Victoria Clancy – Senior Management Accountant Office of the COO Yes

13 STAKEHOLDER IMPACTS Not Applicable. 14 TIMING Not Applicable. 15 CONCLUSION Water and Waste actively monitors performance to ensure its operations are undertaken in the most effective and efficient manner possible to provide value for money to the Customers of the City. This is achieved through rigorous internal processes which include detailed review of all projects to ensure only prudent and efficient expenditure is incurred. Waste Services’ Earnings before Interest and Tax (EBIT) for the period to 31 May 2020 is $23.8 million and $0.29 million (1.2%) ahead of forecast, due to operating revenue being slightly ahead of forecast. Waste services continued to operate through the COVID-19 crisis, with only moderate changes to Waste and Recycling Centres’ operations, resulting in minimal impacts to the financial performance.


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2020 FN334/252/20(P6) 16 RECOMMENDATION It is recommended that Council resolves as follows: That Council notes the Waste Services Monthly Financial Report for the period ended 31 May 2020. Author: Authorised by: Karen O’Brien Paul Heaton Manager Business Performance Director Water and Waste 15 June 2020 TRACKS REF: #76647622 COMMITTEE RECOMMENDATION WWE20.0722.004 moved Cr Tozer seconded Cr PJ Young That Council notes the Waste Services Monthly Financial Report for the period ended 31 May 2020.

CARRIED


Attachment 4.1

Detailed Financial Management Report – 31 May 2020

Full Year

Actual Revised Budget

Var Var Initial Budget

Revised Budget

31 May 2020 $'000 $'000 $'000 % $'000 $'000RevenueWaste Utility Rate Revenue 80,092 80,186 (94) (0.1%) 87,433 87,340Waste Levy Receipts 5,185 4,941 245 5.0% 10,196 5,538Gate Fees 8,483 7,328 1,156 15.8% 9,248 8,294Recycling Revenue 2,857 2,586 271 10.5% 3,094 3,044Fees and Charges 1,154 944 210 22.2% 1,096 1,030Community Service Obligations 2,794 2,794 0 0.0% 3,706 3,048Interest on Outstanding Rates 269 176 93 52.6% 250 192Interest on Investments 666 666 - 0.0% 932 726Contributions & Donations Revenue 394 410 (16) (3.8%) 410 410Other Operating Income 460 460 0 0.0% 0 460Total Operating Revenue 102,353 100,489 1,864 1.9% 116,364 110,082

Operating ExpensesEmployee Expenses 8,166 7,919 (247) (3.1%) 7,765 8,582Materials and Services 12,402 12,603 200 1.6% 15,010 14,210Waste Levy Payments 458 8 (450) (5,372.7%) 9,211 1,896Council Corporate SLAs 2,999 2,999 (0) (0.0%) 3,271 3,271Protective Services SLA 725 728 3 0.5% 756 794Internal Directorate SLA 4,220 4,220 0 0.0% 4,603 4,603Waste Collection Payments 27,100 27,688 588 2.1% 30,539 30,956Fleet and Plant 12,006 11,767 (238) (2.0%) 13,422 12,822Consultants 699 852 153 17.9% 763 1,211Electricity 173 137 (36) (26.5%) 149 149Insurance Premiums 68 68 (0) (0.0%) 74 74Other Expenditure 2,773 2,750 (23) (0.8%) 2,500 3,000Total Operating Expenses 71,788 71,738 (50) (0.1%) 88,063 81,569

Total Operating Profit 30,565 28,752 1,814 6.3% 28,302 28,513

Loss on Sale of Assets 317 0 (317) 0.0% 0 0

EBITDA 30,249 28,752 1,497 5.2% 28,302 28,513

Depreciation 6,434 5,225 (1,209) (23.1%) 8,600 5,700

EBIT 23,815 23,527 288 1.2% 19,702 22,813Interest Expense (QTC Loan) 3,210 3,210 (0) (0.0%) 3,660 3,502Interest Margin Expense 117 117 (0) (0.0%) 128 128Income Tax Equivalents 8,526 5,621 (2,905) (51.7%) 5,977 6,088NPAT 11,961 14,578 (2,617) (17.9%) 9,937 13,095

Participation Return 7,050 7,050 0 0.0% 7,691 7,691

Retained Earnings 4,911 7,528 (2,617) (34.8%) 2,245 5,404

Waste ServicesFinancial Management Report

Year to Date


CLOSED SESSION LOCAL GOVERNMENT ACT 2009 AND SUPPORTING REGULATIONS PROCEDURAL MOTION moved Cr La Castra seconded Cr McDonald 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/s for the reason/s shown:-

Item Subject Reason

5

Update on Utility Service Provision Transformation Program – Local Government Platform Stage Three

Contractual / Financial Advantage

6

LG314/1211/20/047 Design Development and Construction of Coombabah Sewage Treatment Plant Stage 6 Upgrade

Involves contracts proposed to be made

7 Waste Management Land Requirements Contractual / Financial Advantage

CARRIED

PROCEDURAL MOTION moved Cr PJ Young seconded Cr Tozer That the Committee move into Open Session.

CARRIED Following resumption into Open Session, Item Numbers 5 to 7 were moved and carried as shown on the following pages.


ITEM 5 WATER AND WASTE UPDATE ON UTILITY SERVICE PROVISION TRANSFORMATION PROGRAM – LOCAL GOVERNMENT PLATFORM STAGE THREE WSS1125(P1) Refer 2 page attachment - Known challenges with existing systems 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:

(a) the local government’s budget; or (b) contracts proposed to be made by it; or (c) 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/attachment 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 purpose of this report is to provide an update on the Local Government Platform Stage Three which incorporates the Utility Service Provision (USP) Transformation Program. 4 PREVIOUS RESOLUTIONS COMMITTEE RECOMMENDATION WW19.1203.008 (in part) 2 That Council note that Infor Cloud Suite, which includes Infor Public Sector (IPS),

remains the preferred option for Utility Billing and Meter Management due to reasons outlined in this report.

3 That Council note that the replacement of Trade Waste Management Information System, Solid Waste Management Information System and Expansion of Single View of Customer will be incorporated into the scope of work as outlined in this report.

4 That Council note that contractual arrangements are still being finalised and the City will only proceed with implementation following successful negotiation and approval of Statement of Work (including Price), agreed Program and City costs.

5 That Council note that a further report will be presented to Council once the Statement of Work, Price and Program costs have been finalised.

6 That Council note that the matter has been referred to the City’s Internal Auditor for review as part of the current year’s program.


ITEM 5 (Continued) UPDATE ON UTILITY SERVICE PROVISION TRANSFORMATION PROGRAM – LOCAL GOVERNMENT PLATFORM STAGE THREE WSS1125(P1) Committee Recommendation WW18.0320.005 (in part) 2 That Council note that a decision on LGP Stage Three is deferred until February 2019

due to items outlined in this report.

3 That Council note that a Business Case will be bought back to Water and Waste Committee in late 2018 on the preferred approach for LGP Stage Three.

Committee Recommendation GA16.0721.003 (in part) 2 That Council notes that the refreshed business case of July, 2016 (Attachment 2)

reveals an equivalent forecast net investment outcome when compared to the October, 2015 business case.

3 That Council note that the implementation schedule has altered due the 2018 Commonwealth Games stability period.

4 That having regard to the revised and improved contract terms referred to in the report, Council approves to vary contract LG314/1185/15/007 - Local Government Platform (LGP) to take up the first five year extension period, increasing the contract operational term from 10 years to 15 years, with a subsequent extension option for a further period of up to five years.

5 That a refreshed ICT Transformation Program Business Case be presented to Council prior to the commencement of the implementation of the IPS utility billing and water meter management system.

5 DISCUSSION 5.1 Background Council’s Local Government Platform (LGP) ICT project was awarded to Infor Global Solutions Pty Ltd (Infor) in October 2015. The project was awarded based on an integrated Pathway - Infor Public Sector (IPS) solution incorporating the following modules:

Module Product Property Pathway Rates and Billing Pathway Inspections Pathway Licensing Pathway Applications Pathway Water Billing IPS Water Meter Management IPS


ITEM 5 (Continued) UPDATE ON UTILITY SERVICE PROVISION TRANSFORMATION PROGRAM – LOCAL GOVERNMENT PLATFORM STAGE THREE WSS1125(P1) The project was initially scheduled to be delivered in two stages. Subsequently, due to the separation of the Utility functionality into a distinct phase to be delivered post Commonwealth Games, the project was re-scheduled to be delivered in three Stages: § Stage One – Design (completed February 2016); § Stage Two – Pathway Implementation (substantially completed July 2018); and § Stage Three – IPS Implementation.

XxxREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx § Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx § Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx § Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Xxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Water and Waste utilised the delay in Stage Three implementation to establish the Utility Service Provision (USP) Transformation Program, further refine scope (and include Wastedge replacement and expansion of single view of customer into scope), develop “journey” maps and user stories, complete LEAN reviews to streamline business processes based around functionality of the solution and engaged with other Utilities using the solution. In December 2019, a report was tabled at the Water and Waste Committee reconfirming that IPS remained the preferred solution, however was still subject to finalisation of the Statement of Work and pricing negotiation. Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxx

Table 1: Redacted due to confidential content.

Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx


ITEM 5 (Continued) UPDATE ON UTILITY SERVICE PROVISION TRANSFORMATION PROGRAM – LOCAL GOVERNMENT PLATFORM STAGE THREE WSS1125(P1) 5.2 Current Situation In February 2020, Water and Waste identified several key risks from both a City and Vendor perspective which had the potential to impact the successful delivery of the planned Utility Service Provision (USP) Transformation Program. An alternate plan, Utility Billing Systems Stabilisation (UBSS), was developed in parallel to Infor negotiations to be enacted if key risks were realised. This would ensure that the City could continue to issue Utility charges (worth approximately $600 million annually). XxREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 5.3 Goals The initial goals for implementation of LGP Stage Three remain unchanged, namely: § Ageing and inflexible technology: The systems involved in the billing and

management of Utility Services are Grange Water, Wastedge and the Trade Waste Information Management System (TWIMS). The City’s versions of these products are end of life and will not be supported beyond 2021 without significant upgrade. Attachment A provides an overview of the known challenges.

§ Inefficient processes: Current processes to support Utility billing and management are inefficient and require review and streamlining as they are built around inflexible technology.

§ Poor customer experience: The City’s service offering is out of step with other Utilities and currently below customer expectations in terms of customer experience.

§ Inability to readily respond to business changes: There are challenges in easily responding and adapting to changes, including in legislation such as the introduction of the State Government Waste Levy.

At the highest level, the goal is to ensure Water and Waste utility charges continue to be issued to customers using stable and supported systems.


ITEM 5 (Continued) UPDATE ON UTILITY SERVICE PROVISION TRANSFORMATION PROGRAM – LOCAL GOVERNMENT PLATFORM STAGE THREE WSS1125(P1) 5.4 Options There are three options to meet these goals: § Option 1 – Do Nothing: No further investment is made into existing systems involved

in the billing and management of Utility Services. § Option 2 – Proceed with Utility Billing Systems Stabilisation Program and not proceed

with IPS at this time. § Option 3 – Proceed with Utility Service Provision Transformation Program: Continue

with IPS as part of the USP Program as soon as practicable post COVID-19. Analysis Option 1 is not a viable option and not considered further. Existing billing systems will not be supported after xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Option 2 involves proceeding with Utility Billing Systems Stabilisation Program (UBSS). The scope of the UBSS Program involves: § XREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

§ Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

§ Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

§ Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Option 3 however also requires Option 2 to be undertaken due to: § REDACTEDDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

x xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

§ Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx It is therefore recommended to proceed with UBSS and not continue with IPS at this time. XREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxx


ITEM 5 (Continued) UPDATE ON UTILITY SERVICE PROVISION TRANSFORMATION PROGRAM – LOCAL GOVERNMENT PLATFORM STAGE THREE WSS1125(P1) While Option 2 is lower cost and will provide a stabilised system, the benefits forecast to be realised through the implementation of LGP Stage Three will not be realised. These benefits include: § Customer portal for Utility Services § On line service requests § Workflow management for Utility Services § Efficient and flexible billing options § Meter Asset Management. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Supporting the delivery of Gold Coast 2022: B – We Manage the City Responsibly The UBSS Program will ensure that existing systems that bill and manage Utility revenue are stabilised. 7 FUNDING AND RESOURCING REQUIREMENTS Budget/Funding Considerations As part of the 2020-21 budget, Water and Waste have included $5 million for the Utility Billing Systems Stabilisation Program as part of Cost Centre 1010530 and project number 89328. People and Culture A detailed resourcing plan has been prepared to support the delivery of the Utility Billing System Stabilisation Program. Nine new Above Approved Staff Establishment (AASE) positions will be required during the life of the Program and two existing AASE positions will require extension. These positions have all been accounted for within the Program Budget. 8 RISK MANAGEMENT The implementation of the recommended Option mitigates the following risks: § Corporate risk CO000523 – ICT legacy systems leading to business and service

failure. § WW Directorate Risk CO000535 – Business IT systems do not effectively or

efficiently support the provision of water, sewage and solid waste products and services.

A detailed Program Risk Register has been developed to manage risks through the delivery of the Program.


ITEM 5 (Continued) UPDATE ON UTILITY SERVICE PROVISION TRANSFORMATION PROGRAM – LOCAL GOVERNMENT PLATFORM STAGE THREE WSS1125(P1) 9 STATUTORY MATTERS As Commercial Business Units Gold Coast Water and Gold Coast Waste Management are subject to economic regulation, Water and Waste ensures that all business investments are ‘prudent and efficient’. These costs include both internal Council and external Vendor costs. 10 COUNCIL POLICIES Not Applicable. 11 DELEGATIONS Not Applicable. 12 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted



Glen Potter – Director Organisational Services

Organisational Services Yes

Cath Drinkwater – Acting Chief Information Officer


Chris Owen – Manager Customer Engagement

Water and Waste Yes

John Blair – Manager Corporate Finance

Office of the Chief Operating Officer

Yes

Karen Farquhar – Acting Management Corporate Assurance


Yes

Bryan Abel – Senior Lawyer Office of the Chief Operating Officer

Yes

Sue Hunter – Executive Coordinator Data Intelligence


Leigh Jackson – Acting Executive Coordinator Revenue Services


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


ITEM 5 (Continued) UPDATE ON UTILITY SERVICE PROVISION TRANSFORMATION PROGRAM – LOCAL GOVERNMENT PLATFORM STAGE THREE WSS1125(P1) 13 STAKEHOLDER IMPACTS External / community stakeholder Impacts As the UBSS Program is to stabilise existing systems, there will be minimal benefit to Customer Services. However, there may be opportunities with the Wastedge upgrade to utilise enhanced customer features. XxREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Internal (Organisational) Stakeholder Impacts Areas that will be impacted by the UBSS Program include teams from within Water and Waste and Organisational Services Directorates. Where there are changes to existing processes or systems, engagement and training will be managed through Organisation Change Management (OCM) activities. A detailed OCM plan will be developed to ensure impacted staff are fully engaged during the Program. As part of the work that was undertaken in USP program there were numerous process improvement opportunities available that were system agnostic. These improvements will be implemented in parallel to the UBSS Program. 14 TIMING The Utility Billing Systems Stabilisation Program will commence on 1 July 2020 and will cover two financial years. The Program will provide stability of existing systems for at least five years. During this time, a new long-term Utility Billing solution will be investigated. 15 CONCLUSION Water and Waste has invested significantly, both from a time and cost perspective, in preparation for implementation of Local Government Platform (LGP) Stage Three. Implementation of Infor Public Service (IPS) as part of LGP Stage Three was previously identified as the preferred solution for water billing, meter management, solid and trade waste management at xxxxxxxxxxxxxxxxxxxxxxxx XxREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx To address this risk identified by the City, an alternate plan – Utility Billing System Stabilisation (UBSSS) Program was developed. This Program will focus on stabilising existing solutions xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxx


ITEM 5 (Continued) UPDATE ON UTILITY SERVICE PROVISION TRANSFORMATION PROGRAM – LOCAL GOVERNMENT PLATFORM STAGE THREE WSS1125(P1) 16 RECOMMENDATION It is recommended that Council resolves as follows: 1 That the report/attachment 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 update and strategy for progressing Utility Billing services at this time.

Author: Authorised by: Karen O’Brien Paul Heaton Manager Business Performance Director Water and Waste 16 June 2020 TRACKS REF: 76714694 COMMITTEE RECOMMENDATION WWE20.0722.005 moved Cr Hammel seconded Cr Tozer 1 That the report/attachment 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 update and strategy for progressing Utility Billing services at this time.

CARRIED


Attachment 5.1 Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxx XxREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxx XxREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx


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ITEM 6 WATER AND WASTE CONTRACT NO. LG314/1211/20/047 – DESIGN DEVELOPMENT AND CONSTRUCTION OF COOMBABAH SEWAGE TREATMENT PLANT STAGE 6 UPGRADE LG314/1211/20/047(P1) Refer 1 page attachment – Coombabah STP Stage 6 - Master Plan Site Layout (iSPOT #74617684) 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 contracts proposed to be made by it.

1.2 I recommend that the report/attachment 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 seeks approval to accept significant contract LG314/1211/20/047 to undertake design development and construction of the Coombabah Sewage Treatment Plant (STP) Stage 6 upgrade. 4 PREVIOUS RESOLUTIONS EX Min. WW19.1024.003 (in part)

“1 That the report/attachment 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 status of the Coombabah Sewage Treatment Plant Stage 6 Upgrade and Pimpama Sewage Treatment Plant Stage 2 Upgrade.“

5 DISCUSSION 5.1 Background The Coombabah STP is the largest of the four STPs in the City, servicing an equivalent population (EP) of approximately 330,000 or 50% of the City’s sewage. The 2017 Business Case for the Coombabah STP Upgrade completed a capacity assessment of the STP and identified that the treatment plant would be at, or near capacity within the next few years.


ITEM 6 (Continued) CONTRACT NO. LG314/1211/20/047 – DESIGN DEVELOPMENT AND CONSTRUCTION OF COOMBABAH SEWAGE TREATMENT PLANT STAGE 6 UPGRADE LG314/1211/20/047(P1) In 2019, a review of the 2017 Business Case was completed and concluded that the Stage 6 augmentation should be increased from 70,000 EP to 120,000 EP. This was on the basis of significantly increased projected development and population within the catchment over the next 10 years. The current growth projections indicate that this additional capacity will be required at the Coombabah STP by mid-2022 (i.e. over 10 years after the completion of Stage 5). Initial concept designs highlighted the need to duplicate the preliminary treatment facilities (PTF) for the Coombabah STP Stage 6 expansion. This was prudent to enable the PTF for the existing plant (which was originally constructed in the 1970’s) to be taken offline for an extended period of time for significant maintenance and refurbishment. The PTF for the Stage 6 Project has been increased to 250,000 EP accordingly. In terms of the Procurement Policy and Contract Manual Council resolved under the City Contracting Plan 2018-19 Ex-Minute No. G18.0621.050 and Ex-Minute No WW19.1024.003, that it would be in the public interest to invite Expressions of interest (EOI) before inviting written offers. EOIs were invited by advertising in the Gold Coast Bulletin, Courier Mail and The Australian and LG Tender Box on 22 June 2019. The EOI offer period closed on 24 July 2019. The EOI process was considered to be sufficiently extensive to have attracted competitive interest from the market. The following five companies submitted an EOI

Company/s Name 1 BMD Industrial/Clough - Joint Venture (JV) 2 Haslin Constructions/Pensar Water - JV 3 John Holland Pty Ltd 4 Lendlease Engineering Pty Ltd 5 UGL Engineering Pty Ltd

The EOI submissions were evaluated using the following mandatory criteria that formed part of the documentation: § current third party accredited company Occupational Health and Safety Management

System (OHSMS) in accordance with AS/NZS 4801:2001 and/or OHSAS 18001:2007 § current third party accredited company Quality Management System (QMS) certified

to AS/NZ ISO 9001:2000 § current third party accredited company Energy Management System (EMS) in

accordance with AS/NZS ISO 14001:2004.


ITEM 6 (Continued) CONTRACT NO. LG314/1211/20/047 – DESIGN DEVELOPMENT AND CONSTRUCTION OF COOMBABAH SEWAGE TREATMENT PLANT STAGE 6 UPGRADE LG314/1211/20/047(P1) The second gate of the evaluation process considered the evaluation of the following capability scoring criteria and determined those suppliers capable of meeting Council’s requirements: § Local Content (the EOI documents requested detail on how they would maximise

local content in the delivery of the Project) § Project Appreciation § Company Experience § Capability of Personnel § Project Management Systems.

Evaluations were undertaken by three officers of Council, attended by three technical reviewers and the result was further reviewed and verified independently by an externally engaged probity advisor (Charles Kendall Australia Pty Ltd). The names of the evaluation team and the scoring matrix with assigned weightings are on file for reference. The following submissions were shortlisted to progress to the Select Tender Phase. Company Name

1 John Holland Pty Ltd 2 Lendlease Engineering Pty Ltd 3 UGL Engineering Pty Ltd

5.2 Current situation The second stage of the procurement process was to undertake an Early Contractor Involvement (ECI) phase to finalise the preliminary design, technical specifications and contract documents. Two technical workshops and one commercial workshop were completed with each of the companies to facilitate the development of the final Tender documents and clarify what alternatives to the confirming design might be acceptable. Invitations to Offer (Tenders) were subsequently invited from the shortlisted companies on 13 December 2019. The Tender period closed on 25 March 2020. Tenders were received from all of the shortlisted Companies. 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 five officers of Council, attended by three observers and the result was reviewed and verified independently by an officer from City Procurement and an externally engaged probity advisor (Charles Kendall Australia Pty Ltd). The names of the evaluation team and the scoring matrix with assigned weightings are on file for reference.


ITEM 6 (Continued) CONTRACT NO. LG314/1211/20/047 – DESIGN DEVELOPMENT AND CONSTRUCTION OF COOMBABAH SEWAGE TREATMENT PLANT STAGE 6 UPGRADE LG314/1211/20/047(P1) 5.3 Goals The goal of the Coombabah STP Stage 6 Upgrade project is to deliver the necessary capacity increase required to meet the future development of the City while ensuring the Environmental Authority (EA) licence requirements are met. 5.4 Options In order to meet the Goals, a number of assessments were undertaken including the following:

§ Alternative treatment technologies and business case validation in the approved 2019 Business Case Validation and Master Plan Update Report.

§ Alternative staging strategies were analysed against the works proposed in the Assessment of Alternative Staging Strategy to Including Primary Sedimentation.

The results of the assessments confirmed the Stage 6 Upgrade scope of works are the optimum solution. 5.5 Analysis The first gate of the evaluation process was evaluated as part of the EOI stage. The second gate of the evaluation process considered the evaluation of the following capability scoring criteria and determined those Tenderers capable of meeting Council’s requirements. § Team Capability and Cohesion § Project Delivery and Execution § Technical Design § Materials, Equipment, and Products. The resultant aggregated scores were as follows.

Tenderer Evaluation

Score (out of 100%)

1 John Holland Pty Ltd Xxx

2 Lendlease Engineering Pty Ltd Xxx

3 UGL Engineering Pty Ltd Xxx All Tenderers scored sufficiently in the evaluation of their capability and were determined as capable of meeting Council’s requirements. As a result, these Tenderers were moved through to the third evaluation gate.


ITEM 6 (Continued) CONTRACT NO. LG314/1211/20/047 – DESIGN DEVELOPMENT AND CONSTRUCTION OF COOMBABAH SEWAGE TREATMENT PLANT STAGE 6 UPGRADE LG314/1211/20/047(P1) The third gate of the evaluation process considered the evaluation of value for money in order to select the most advantageous offer. The tenderers were further shortlisted to two, John Holland Pty Ltd and Lendlease Engineering Pty Ltd. UGL Engineering Pty Ltd were not progressed based on the risk of the solution and the price consideration. The original tendered and final negotiated prices are listed below:

Tenderer Original Tendered Price (excl. GST)

Final Negotiated Price

(excl. GST)* 1 Lendlease Engineering Pty Ltd XxREDACTEDxxx $ 132,168,303.00

2 John Holland Pty Ltd** Xxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxx

3 UGL Engineering Pty Ltd Xxxxxxxxxxxxxxxx Xxx

Council’s estimate was: $132,626,864.00 * Final Negotiated Price inclusive of scope corrected price adjustments, negotiations, and COVID-19 allowance. ** Subject to rise and fall for internationally procured equipment Based on this assessment, the Lendlease Engineering Pty Ltd offer is considered the best value to Council. The design and execution team proposed is capable and has a clear understanding of the scope of work and is not at variance with the requirements of the Invitation to Offer document. Lendlease Engineering Pty Ltd 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 contracting strategy for the STP Upgrade Program was adopted by Council as a proposed significant contract under the City Contracting Plan 2018-19 (EX Min. G18.0621.050), as follows.

Ref. Purpose

Alignment to Corporate Strategies,

Operational and Corporate Plans

Sourcing Method

Contract Type*

Estimated Value of

Contract(s)

Capex/ Opex

Expected Contract

Duration + Extension Option(s)

Expected time to market

(financial year)

Budget Centre

Recommendation

A10588

Design and upgrade to Pimpama sewer treatment plant stage 2 works - Pimpama catchment area*

Invitation to Offer, Significant Contract

(iv)

$190,000,000

Capex

15 months

Q4 18/19

Recommendation to enter into the arrangement be brought back to Council for consideration

* Within the Q4 acquittal process the budget for the Pimpama Sewer Treatment Plant Stage 2 works was increased to $190 million to make provision to include the Coombabah Sewage Treatment Plant Stage 6 Upgrade into a single activity. Unfortunately the title was not updated at the time.


ITEM 6 (Continued) CONTRACT NO. LG314/1211/20/047 – DESIGN DEVELOPMENT AND CONSTRUCTION OF COOMBABAH SEWAGE TREATMENT PLANT STAGE 6 UPGRADE LG314/1211/20/047(P1) 7 FUNDING AND RESOURCING REQUIREMENTS Costs for Capital Works and Service Proposals The Design Development and Construction Coombabah STP Stage 6 Upgrade has a current estimated contract value of $132.2 million. REDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxx The current approved 2020-21 Budget and Ten Year Capital Works Program, including amounts spent to date is shown in the following table:

2017-18 Actuals

2018-19 Actuals

2019-20 Q3

Revised Budget

2020-21 Budget

2021-22 Budget

2022-23 Budget TOTAL

Xxxxxxx Xxxxxxxxxx Xxxxxxxxxx Xxxxxxxxxxx Xxxxxxxxxxx Xxxxxxxxxx Xxxxxxxxxxx

People and Culture Resources to manage this project will be sourced from existing staff supplemented by contingent labour and external resources via the Principal’s Engineer under Contract LG314/621/19/150, which specifically included the requirement for resources throughout the design, construction and commissioning phases of the project. 8 RISK MANAGEMENT The Coombabah STP Stage 6 Upgrade has a project Risk Register which identifies potential risks and outlines suggested strategies to mitigate these risks. The Risk Register is in line with Council policy and will be maintained throughout the life of the project. Any major risks identified will be elevated to the project Steering Committee for consideration. The key critical risks potentially leading to cost increases, reputation impact/s or delay to completion include: § XREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx § Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx § Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Xxxxxxxxxxxxxxxxxxxxxxxx § Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx § Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx


ITEM 6 (Continued) CONTRACT NO. LG314/1211/20/047 – DESIGN DEVELOPMENT AND CONSTRUCTION OF COOMBABAH SEWAGE TREATMENT PLANT STAGE 6 UPGRADE LG314/1211/20/047(P1) 9 STATUTORY MATTERS The Invitation to Offer 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 221(1) of the Local Government Regulation 2012 provides that a local government must make a Significant Contracting Plan for each significant contract before the contract starts for any activity identified in the annual contracting plan as a significant contract. 10 COUNCIL POLICIES The Invitation to Offer process has been carried out in accordance with the requirements of Council’s Procurement Policy and Contract Manual. 11 DELEGATIONS Not Applicable.


ITEM 6 (Continued) CONTRACT NO. LG314/1211/20/047 – DESIGN DEVELOPMENT AND CONSTRUCTION OF COOMBABAH SEWAGE TREATMENT PLANT STAGE 6 UPGRADE LG314/1211/20/047(P1) 12 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


Is the Stakeholder Satisfied With Content of Report and Recommendations

Director Water and Waste Yes Executive Coordinator Major STP Upgrades

Water and Waste Yes

Chief Procurement Officer Organisational Services Yes Executive Coordinator Category and Relationship Management, City Procurement


Coordinator Category and Relationship Management, City Procurement


13 STAKEHOLDER IMPACTS The works are confined to the Coombabah STP site however there are a large number of light and heavy vehicle movements required to complete the works. The Animal Welfare League adjacent to the Coombabah STP site off Shelter Road may be inconvenienced due to the number of additional light and heavy vehicle movements along Shelter Road, particularly between September 2020 and February 2021. The closest residences are approximately 1.2km from the site. Construction noise modelling, particularly during the foundation/piling works has been completed and demonstrates minimal potential for impact. All reasonable measures will be implemented to minimise construction noise and vibration during this phase of construction. A detailed list of impacted stakeholders and mitigations will be developed prior to construction and will be included in the project Communication and Engagement Plan.


ITEM 6 (Continued) CONTRACT NO. LG314/1211/20/047 – DESIGN DEVELOPMENT AND CONSTRUCTION OF COOMBABAH SEWAGE TREATMENT PLANT STAGE 6 UPGRADE LG314/1211/20/047(P1) 14 TIMING The following table outlines key project dates.

Item or Activity Planned Date/s Contract award Aug 2020

Detailed design Aug 20 – Dec 20 Foundation including piling Sept 20 – Dec 20 Bioreactor – civil, mechanical and electrical works Jan 21 – Dec 21

Mechanical Completion Apr 2022 Commissioning Apr 22 – Jul 22

Practical Completion Jul 22 Approval of the award of the Coombabah STP Stage 6 Upgrade in July 2020 is critical to accommodate the expected growth projections and associated capacity requirements by mid-2022 to avoid potential Environmental Approval licence breaches. 15 CONCLUSION The Coombabah STP Stage 6 Upgrade project is to deliver an additional 120,000 equivalent persons capacity increase required to meet the future development of the City while ensuring the Environmental Authority licence requirements are met. The procurement process undertaken to determine the recommended Tenderer was in accordance with Council’s approved Procurement Policy and Contract Manual. The recommended Tenderer is experienced in the type of work to be undertaken. The evaluation of the Tenders received indicates that the submission by Lendlease Engineering Pty Ltd is the one most advantageous to Council and should be recommended for acceptance.


ITEM 6 (Continued) CONTRACT NO. LG314/1211/20/047 – DESIGN DEVELOPMENT AND CONSTRUCTION OF COOMBABAH SEWAGE TREATMENT PLANT STAGE 6 UPGRADE LG314/1211/20/047(P1) 16 RECOMMENDATION It is recommended that Council resolves as follows. 1 That the report/attachment be deemed non-confidential except for those parts deemed


2 That Council accepts the lump sum offer submitted by Lendlease Engineering Pty Ltd for the total amount of $ 132,168,303.00 (excluding GST), without rise and fall, in respect of significant contract LG314/1211/20/047 for Design Development and Construction of Coombabah Sewage Treatment Plant Stage 6 Upgrade.

3 That it be noted that the contract will require funding over three financial years. A budget of $68,121,250 has been approved for the current financial year and funds are available in the Water and Sewerage Infrastructure Reserve to cover the future amount of $71,035,500 in the 2021-22 and 2022-23 financial years. The total expenditure required to service the commitment the contract gives rise to, is anticipated to be $144,964,997 with funding allocated from Budget and Cost Centre GW2020C002 WBS71149.

Author: Authorised by: Christian Truscott Paul Heaton Manager Asset Solutions 26 July 2020

Director Water and Waste

iSPOT # 76646345

COMMITTEE RECOMMENDATION WWE20.0722.006 moved Cr O’Neill seconded Cr PJ Young 1 That the report/attachment be deemed non-confidential except for those parts


2 That Council accepts the lump sum offer submitted by Lendlease Engineering Pty Ltd for the total amount of $ 132,168,303.00 (excluding GST), without rise and fall, in respect of significant contract LG314/1211/20/047 for Design Development and Construction of Coombabah Sewage Treatment Plant Stage 6 Upgrade.

3 That it be noted that the contract will require funding over three financial years. A budget of $68,121,250 has been approved for the current financial year and funds are available in the Water and Sewerage Infrastructure Reserve to cover the future amount of $71,035,500 in the 2021-22 and 2022-23 financial years. The total expenditure required to service the commitment the contract gives rise to, is anticipated to be $144,964,997 with funding allocated from Budget and Cost Centre GW2020C002 WBS71149.

CARRIED

791st Council Meeting 28 July 2020 75 Water, Waste and Energy Committee Meeting 22 July 2020 Adopted Report page


ITEM 7 WATER AND WASTE WASTE MANAGEMENT LAND REQUIREMENTS HL323/-/-(P7) Refer 23 page attachment 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.

1.2 I recommend that the report/attachment 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 purpose of this report is to review current and future land holdings within the Waste Service business to ensure operational requirements, customer service and financial sustainability. 4 PREVIOUS RESOLUTIONS Ex-Minute G13.0514.007 refers (in part)

2 That based on the analysis of the presented in this report, it is recommended that Council adopt the following:

d That the Suntown WRC be closed to the public each Monday to Friday from 1 July 2013, other than on public holidays and during the Christmas holiday period and fully closed to the public upon completion of upgrades to Helensvale Waste and Recycling Centre.

Ex-Minute G09.1026.014 refers (in part)

2. That normal landfilling operations and activity at Suntown Landfill cease on 31 December 2010…

5. That from 1 January 2011, the ongoing acceptance of green waste and demolition waste will be continued for the purpose of resource recovery and recycling.

7. That the Suntown landfill site will continue to operate as a waste management facility incorporating a waste transfer station, or a recycling and/or recovery facility.


ITEM 7 (Continued) WASTE MANAGEMENT LAND REQUIREMENTS HL323/-/-(P7) 5 DISCUSSION 5.1 Background

The Waste Management business is custodian of a number of land parcels worth around xxxxx. These parcels include existing operational sites, retired operational sites (potentially available for transfer or disposal) and planned future operational sites. A full list of current land holdings is in Attachment A. 5.2 Current Situation Current key Waste Management land related issues include:

· Potential loss of large areas for the Molendinar site due to construction of the “Coomera Connector” xxREDACTEDxxxxxxxxxxxxxxxxx.

· Potential re-activation of the existing xxxxxxx site for resource recovery activities such as a green waste pad or future Materials Recycling Facility (Refer Attachment C).

· Progress on previously approved land purchases xxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxxxx.

· Development of the Coomera Waste and Recycling Centre in conjunction with consideration of the broader Council Coomera Depot (Refer Attachment E).

· Securing of potential future landfill sites within the City based on quarry / extractive

industries xxxxxxxxxxxxxxxxxxx.

· Waste Management land being utilised by other directorates for storage and other activities.

5.3 Options The planned resumption of the waste management land in Molendinar leaves a significant gap in waste facility planning and development. The existing xxxxxxxxxxxxxxxxxxxx extractive industry sites offer potential alternative opportunities xxxxxxxxxxxxxxxxxxxxxxxx for waste facility development, both in the short and longer term. XxREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx


ITEM 7 (Continued) WASTE MANAGEMENT LAND REQUIREMENTS HL323/-/-(P7) CONFIDENTIAL Master planning is underway for the Coomera Waste and Recycling Centre (WRC). Concurrent consideration is also being given to the future development of the Council Depot on adjacent land. Timely planning of facilities is required to ensure development of the WRC to meet increasing demands in the northern part of the City. XREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Securing of a number of potential future landfill sites is critical for ongoing affordable waste management for the City. Identification of potential quarry sites has been undertaken xxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. Under the current Solid Waste Strategy 2024, there is a performance criteria based on identifying landfill capacity for greater than a 10 year time horizon. Given the limited opportunities and long-term nature of quarrying, it is recommended that identification, planning and securing of future Waste Management sites be extended to a 50 year time horizon. There remains potential for a “regional” waste disposal solution and potential transport of wastes out of the city for treatment and/or disposal. While this remains an option for the city, transportation costs (for example to Ipswich) and ultimate treatment and/or disposal will be at a significant cost and it is prudent that the City retains a range of viable cost-effective local alternatives. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN The proposed arrangements will contribute to the outcomes of the Solid Waste Strategy 2024, and achievement of Gold Coast 2022. Under the Corporate Plan this aligns to: § 1.3 We manage our resources for a sustainable future – we innovate to protect our

water resources, maximise recycling and reduce waste, with a proposed increase in recycling from 40% to 54% by 2024.


ITEM 7 (Continued) WASTE MANAGEMENT LAND REQUIREMENTS HL323/-/-(P7) 7 FUNDING AND RESOURCING REQUIREMENTS Budget/Funding Considerations Land purchases or development of water and waste facilities occurs through revenue, reserves and loan funding. Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx XREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Both reserves are available to the Directorate. Land purchase xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx will be funded initially by Water and Sewerage Business through its infrastructure reserves xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. The capital funding will be transferred and reconciled at a later date. Compensation by Department of Transport and Main Roads for the resumption of the Molendinar site, along with potential sale xxxxxxxxxxxxxxxxxxxxxxxxxx may assist to offset the potential costs of other land purchases in the short-medium term. Waste also has a number of minor land holdings (associated with closed facilities) which are also available for transfer of custodianship or disposal. Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Costs for Capital Works and Service Proposals Costs for capital works associated with land purchases are subject to standard Council business case and budget provisions. The current Waste Services ten year capital works program has forecast an $80m investment spread evenly over the 2028-29 and 2029-30 financial years for potential land purchases. People and Culture Not Applicable.


ITEM 7 (Continued) WASTE MANAGEMENT LAND REQUIREMENTS HL323/-/-(P7) 8 RISK MANAGEMENT The report addresses the following Directorate and Corporate risk mitigations:

Risk Number

Risk Title and Mitigation(s)

161 Inadequate approved land resources for waste management purposes leading to increased capital and operational costs.

· Control CN000503: Waste reduction and resource recovery programs. · Control CN002114: Best practice in waste facility operations and

management. · Action CM001700: Introduction of incentives to encourage the reduction of

waste and more recycling. · Action CM001701: Review site management practices to identify further

improvements.

CO000531 Inadequate planning for water, sewerage and solid waste asset renewals and new growth planning.

· Control CN001188: Strategic Planning

CO000696 The State Government Waste Levy places significant additional costs on the Council operations and delivery of new, and maintenance of, community infrastructure and services.

· Control CN002335: Delivery of waste recovery improvement initiatives under the City’s Waste Strategy and additional initiatives to recover materials and extend life of the City’s landfills.

· Action CM001931: Continued delivery of waste recovery improvement initiatives under the City’s Waste Strategy and additional initiatives to recover materials and extend life of the City’s landfills.


ITEM 7 (Continued) WASTE MANAGEMENT LAND REQUIREMENTS HL323/-/-(P7) 9 STATUTORY MATTERS All waste transfer facilities receiving over 11,000 tonne or 11,000 cubic metres of waste material per annum are required to have an Environmental Authority from 1 July 2019 with a 12 month transition period which expires 1 July 2020. All landfill sites are required to have an Environmental Authority. XREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Under current legislation, there are no Developer Contributions levied nor therefore available for funding of Waste Services headworks or “trunk” infrastructure. This appears anomalous compared with other essential services infrastructure. 10 COUNCIL POLICIES Not Applicable. 11 DELEGATIONS Not Applicable.


ITEM 7 (Continued) WASTE MANAGEMENT LAND REQUIREMENTS HL323/-/-(P7) 12 COORDINATION & CONSULTATION The table below identifies internal and external stakeholders that have been involved and or have participated in the proposal to date and the outcome of that participation. Name and/or Title of the Stakeholder Consulted


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

Karen O’Brien, Manager Business Performance

Water and Waste Yes

Chris Hocking, Manager System Control

Water and Waste Yes

Rod Packer, Acting Manager Strategy and Innovation

Water and Waste Yes

Ross McInnes Manager Property Services


Amanda Sheers, Manager City Planning

Economy, Planning and Environment

Yes

Mick Moran, Manager City Development

Economy, Planning and Environment

Yes

Donna Pistol, Senior Lawyer


No feedback received

Ron Jacobs, Manager Parks & Recreation Services

Lifestyle and Community No – xxxREDACTEDxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxx

Dean Gutteridge, Manager Fleet

Organisational Services No feedback received

Matthew Hulse, Manager Infrastructure Delivery

Transport and Infrastructure Yes


ITEM 7 (Continued) WASTE MANAGEMENT LAND REQUIREMENTS HL323/-/-(P7) 13 STAKEHOLDER IMPACTS External / community stakeholder Impacts External / community stakeholder impacts may include:

· Residential and commercial establishments living immediately adjacent to xxxxxxx Xxxxxxxxxxx proposed xxxxxxx facility.

· XREDACTEDxxxxxxxxx xxxxxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxxxx xxxxxxxxxxx · Xxxxxxxxxxxxxxxxx

A comprehensive community engagement plan will be developed prior to activation of any activities xxxxxxxxxxxxxxxxxxx. Xxxxxxxxxx are actively engaged in operational planning on an ongoing basis. XREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Internal (Organisational) Stakeholder Impacts Internal impacted stakeholders may include:

· Landfill and Waste and Recycling Centre Operations · Fleet Transfer Truck Operations (Organisational Services) · Transport and Infrastructure (storage of materials from Infrastructure Delivery and

City Cleaning activities) · Parks and Recreational Services (Lifestyle and Community)

A comprehensive engagement plan will need to be developed. The affected Directorate/s may need to also undertake a land requirements assessment and acquisition. 14 TIMING Management of land acquisition and retirement from Waste Management activities is an ongoing process. The timing of the identified land proposals outlined in this Report are planned to be advanced and resolved as soon as possible.


ITEM 7 (Continued) WASTE MANAGEMENT LAND REQUIREMENTS HL323/-/-(P7) 15 CONCLUSION The potential loss of large areas for the planned Molendinar Waste Precinct due to construction of the Coomera Connector has trigged consideration of a range of land related options for ongoing Waste Management Services including:

· Potential re-activation of the existing xxxxxxx site for resource recovery activities. · Development of the xxREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx in conjunction

with consideration of the broader Coomera Depot. · Securing of potential future landfill sites based on existing xxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxxxxxxxxxxx A range of actions are proposed to address and progress the issues outlined above. A key consideration is the identification, securing and staged development of a range of potential waste management sites to ensure long-term sustainable waste and recycling management services for the city. 16 RECOMMENDATION It is recommended that Council resolves as follows: 1 That the report/attachment be deemed non-confidential except for those parts deemed


2 That Council notes the attached report. 3 That Council endorses the development of an appropriate stakeholder consultation and

engagement program for potentialxREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx for materials recycling.

4 That Council supports the adoption of a 50 year planning horizon, for the identification and securing of suitable large and long term waste management locations across the City.

5 That Council supports the proactive pursuit of potential future waste management locations as identified in Attachment F of this Report.

Author: Authorised by: Kathy Baker Paul Heaton Manager Service Sustainability Director Water and Waste 3 July 2020 TRACKS REF: #76540707


ITEM 7 (Continued) WASTE MANAGEMENT LAND REQUIREMENTS HL323/-/-(P7) Changed Recommendation COMMITTEE RECOMMENDATION WWE20.0722.007 moved Cr PJ Young seconded Cr Hammel 1 That the report/attachment be deemed non-confidential except for those parts


2 That Council notes the attached report. 3 That Council endorses the development of an appropriate stakeholder

consultation and engagement program for potential materials recycling opportunities.

4 That Council supports the adoption of a 50 year planning horizon, for the identification and securing of suitable large and long term waste management locations across the City.

5 That Council supports the proactive pursuit of potential future waste management locations as identified in Attachment F of this Report.

6 That a report comes back to Council on this matter by March 2021.

CARRIED


Attachment 7.1 Attachment A: Existing Waste Services Land Holdings* Address Facility Disposal 16 Rossmanns Road, Stapylton Stapylton Landfill No 96 Rossmans Road, Stapylton Stapylton Landfill No 32 Rossmans Road, Stapylton Stapylton Landfill No Rossmans Road, Stapylton Stapylton Landfill No 50 Quarry Road, Stapylton Stapylton Landfill No Old Coast Road, Nerang Molendinar WRC No Old Coach Road, Nerang Molendinar WRC No 1 Matilda Road, Nerang Molendinar WRC No 2 Matilda Road, Nerang Molendinar WRC No 287 Mudgeeraba Road, Mudgeeraba Mudgeeraba WRC No 119 Pimpama Jacobs Well Road, Pimpama Pimpama WRC To be transferred to

Lifestyle and Community as parkland.

Old Pacific Highway, Pimpama Future Coomera WRC No Boowaggan Road, Merrimac Merrimac WRC No 89Hutchinson Street, Burleigh Heads Reedy Creek Landfill No 45 Hutchinson Street, Burleigh Heads Reedy Creek WRC No 4 Boyd Street, Bilinga Tugun Landfill No Captain Cook Drive, Arundel Suntown Landfill No Currumbin Creek Road, Currumbin Valley Currumbin WRC No 70 Helensvale Road, Helensvale Helensvale WRC No *Note: This does not include waste facilities held on land under State Government lease.


Attachment 7.2 Attachment B: Molendinar Waste Precinct Background A map of existing land parcels within the Molendinar precinct is in Figure B.1. Eastern land parcels are utilized for existing waste management activities including:

· Endeavour resource recovery area · Council waste and recycling centre · Council green waste pad · Council recycled metal pad · Council landfill (suspended operations) · Council transfer station where Council waste collection trucks transfer waste to larger

RORO (roll on roll off) waste bins for transport to landfill · Council depot leased to JJ Richards & Sons Pty Ltd as part of the Waste Collections

Contract A number of the land portions utilized by Council for the above activities are State Government leasehold. Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx


Figure B.1: Existing Molendinar Land Parcels


Western land portions have been preserved for future waste management and processing purposes. The western Molendinar land portions are bisected by the heavy rail corridor. A number of the existing western areas are currently utilized (with agreement from Waste Operations) by Transport and Infrastructure for bulk materials handling and management. Future facilities potentially planned for this site included:

· Council waste transfer station. · Council depot leased for future Waste Collections Contract (existing depot is at

capacity and land area required for alternative activities). · Material recycling facility. · Complimentary (private) recycling activities.

Figure B.2 indicates preliminary concept layout plans for these areas xxxxxxxxxxxxxxx xxxREDACTEDxxxxxxxxxxxxxxxx Figure B.2 Redacted due to confidential content.

Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Current Situation Recent xxxxxxxxxxxx advice from Department of Transport and Main Roads (TMR) has indicated that the land portion to the east of the heavy rail corridor will be xxxxxxxxxxxx subsumed by the proposed Coomera Connector and associated works. Xxxxxxxxxxxxxxx xREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. This would negate the planned waste facility development, necessitating identification of alternative land parcels and location of facilities. The area impacted includes the existing land parcels west of the heavy rail line currently utilized by Transport and Infrastructure.


Figure B.3 Redacted due to confidential content.

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Attachment 7.3

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Figure C.1: Redacted due to confidential content.

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Attachment 7.4

XxREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Figure D.1: Redacted due to confidential content.

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Attachment 7.5

ATTACHMENT E – Coomera Facility Background The City historically secured a portion of land opposite the existing Council Coomera Depot for the development of a new Waste and Recycling Centre (WRC) to service growth in the northern part of the city. An aerial photo of the site is contained in Figure E.1. The existing site (marked in red) is not ideal for a WRC primarily due to its close proximity to residential dwellings (on the other side of the heavy rail track) and its generally flat topography (WRC generally benefit from a sloping site which allows development of grade separated operations for public vehicles and heavy haulage trucks).

Figure E.1: Original Site Proposed for Coomera WRC

As a result of existing site constraints, Stage 1 of the Coomera WRC was developed approximately 18 months ago (via a green waste pad) constructed between the existing Council Depot facilities and the “Slideways Go Karting World” The carting track is located on Council owned land and operates via a monthly renewable lease.


Current Situation Current visitor rates to the Helensvale WRC are at approximately 147% of design capacity. Development of the Coomera WRC is therefore proposed within the next two years. As noted, Stage 1 has been developed on the Depot site and preliminary planning is underway for the conjunctive development of both sites. An MCU for utilization of the Depot Site for waste purposes may take up to six months for approval. Resolution of the development of Council land within this precinct in an integrated manner is required to ensure timely development of the Coomera WRC. Xxxxxxxxxxxxxxxxxxxxxxxxx xREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Design is currently proposed in 2020-21.


Attachment 7.6

ATTACHMENT F – Potential Future Landfill Sites Background The City has two active landfills at Reedy Creek and Stapylton. Landfill life calculations are undertaken on a quarterly basis using land surface survey data and compared with established Master Plans. Based on most recent data, assuming a population growth in alignment with Queensland Government Statistician’s Office projections (average of 2.1% per annum to 2041) and Queensland per capita waste generation rate 0.6% (Australian National Waste Report 2016) Stapylton landfill is estimated to have approximately 20 years capacity; and Reedy Creek landfill is estimated to have approximately 21 years capacity. Currently non-putrescible waste is delivered to Reedy Creek, while putrescible wastes (household collections) are taken to Stapylton Landfill. Capacity calculations are highly dynamic and results may vary considerably based on:

· Diversion of wastes from Landfill (such as green or organic wastes) as a result of introduction of the State Government landfill levy.

· The impact of potential natural disasters within the city i.e. a large flood or cyclone event is likely to absorb potentially 2-3 years of landfill capacity.

· Effectiveness of operations at existing landfills including: waste compaction; minimization of landfill earth capping; and re-configuration of existing landfill cells.

· Investment and implementation of advanced waste disposal options such as a waste to energy (incineration) plant.

Council’s current performance indicator (outlined in the Solid Waste Strategy 2024) for landfill operations is to have more than 10 years capacity. Current Situation A recent scoping exercise was undertaken to identify potential future landfill opportunities within the city based on existing extractive industry locations. Xxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Scoping of these locations have identified that the majority of potential sites are projected to have quarrying lifetime of greater than 50 years with some estimated past 65 years. Xxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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XREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx XxREDACTEDxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx The current analysis has shown that Council’s existing performance criteria outlining a 10 year planning horizon is manifestly inadequate for identification, securing and implementation of alternative waste disposal locations. It is therefore proposed that this planning horizon be extended to 50 years. The current analysis does not consider the potential for a “regional” waste disposal solution and potential transport of wastes out of the city for treatment and/or disposal. While this remains an option for the city, transportation costs (for example to Ipswich) and ultimate treatment and/or disposal will be at a significant cost and it is prudent that the City retains a range of viable cost-effective alternatives. It is also noteworthy that either an advanced waste treatment facility or a bulk waste haulage transfer station will require a large and isolated operations area, for which an old Quarry site would provide an equally attractive alternative to landfilling.


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Figure F.1: Redacted due to confidential content.


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There being no further business the meeting closed at 12:22pm


These Pages

Numbered 1 to 117

Constitute The Adopted Report Of The Meeting

Of The Water, Waste and Energy

Held Wednesday 22 July 2020

Documents

Water, Waste and Energy Committee€¦ · That the Report of the Water, Waste and Energy Committee Meeting of Wednesday 22 July 2020, covered by Recommendations numbered WWE20.0722.001