IPSWICH
CITY
COUNCIL
AGENDA
of the
Economic Development Committee
Held in the Council Chambers
2nd floor – Council Administration Building
45 Roderick Street
IPSWICH QLD 4305
On Tuesday, 14 May 2019
At 8:30 AM
IPSWICH
CITY
COUNCIL
AGENDA
of the
Economic Development Committee
Held in the Council Chambers
2nd floor – Council Administration Building
45 Roderick Street
IPSWICH QLD 4305
On Tuesday, 14 May 2019
At 8:30 AM
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MEMBERS OF THE Economic Development Committee |
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Interim Administrator Greg Chemello (Chairperson) |
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Economic Development Committee Meeting Agenda |
14 May 2019 |
Economic Development Committee AGENDA
8:30 AM on Tuesday, 14 May 2019
Council Chambers
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Item No. |
Item Title |
Page No. |
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1 |
Statutory Expression of Interest for partners of Fire Station 101 |
7 |
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2 |
Wind-Up of Ipswich City Properties Pty Ltd |
12 |
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3 |
**Ipswich Central Program Report No. 11 to 16 April 2019 |
20 |
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4 |
**Nicholas Street and Union Place - Landscaping and Services Completion Works - Nicholas Street - Ipswich Central |
29 |
** Item includes confidential papers
Economic Development Committee NO. 5
14 May 2019
AGENDA
1. Statutory Expression of Interest for partners of Fire Station 101
With reference to a report concerning a proposed statutory Expressions of Interest seeking to establish partners of Fire Station 101.
Recommendation
That the Interim Administrator of Ipswich City Council resolve:
A. That Council (Interim Administrator of Ipswich City Council) resolve that it is satisfied that the calling of Expressions of Interest under section 228(5) of the Local Government Regulation 2012, as detailed in the report by the Project Manager (Fire Station 101) dated 1 May 2019, is in the public interest for the following reason:
It will allow Council to identify potential contractors who are serious contenders for the provision of products and services that will improve or enhance knowledge and skills to build innovation capability without putting all contenders to the expense of preparing a full tender response in the initial stages.
B. That Council (Interim Administrator of Ipswich City Council) resolve to invite Expressions of Interest under section 228(5) of the Local Government Regulation 2012, as detailed in the report by the Project Manager (Fire Station 101) dated 1 May 2019, for products and services that will improve or enhance knowledge and skills to build innovation capability.
2. Wind-Up of Ipswich City Properties Pty Ltd
With reference to a report concerning the progress of the winding-up of Ipswich City Properties Pty Ltd (ICP), a 100% owned entity of Ipswich City Council (Council), as per the formal plan which was tabled by the Chief Operating Officer Finance and Corporate Services at the Project Steering Committee meeting held on 8 April 2019. The wind-up plan is to have current ICP assets, licences, leases, intellectual property and operations transferred and incorporated into Council by 30 June 2019. The final deregistration process is then scheduled to occur from July to December 2019.
Recommendation
That the report be received and the contents noted.
3. **Ipswich Central Program Report No. 11 to 16 April 2019
With reference to a report concerning a monthly update for the Ipswich Central Program of Works.
Recommendation
That the report on the Ipswich Central Program Report No. 11 effective to 16 April 2019 be received and the contents noted.
4. **Nicholas Street and Union Place - Landscaping and Services Completion Works - Nicholas Street - Ipswich Central
With reference to a report concerning the delivery of the remaining scope (yet to be awarded) of construction works (“Remainder Works”) within Nicholas Street and Union Place, for Nicholas St – Ipswich Central, which includes the completion of all construction works above pavement level.
Recommendation
That the Interim Administrator of Ipswich City Council resolve:
A. That Council (Interim Administrator of Ipswich City Council) resolve it is satisfied under section 235(a) of the Local Government Regulation 2012 (Regulation) that the exemption under s235(a) of the Regulation applies and that J. MAC Constructions Pty Ltd is the only supplier reasonably available to it to provide Landscaping and Services Completion Works for Nicholas Street and Union Place for the following reason:
Allows project delivery timeframes to be achieved, provides opportunity for savings through economies of scale with the Contractor, and mitigates interface risks both on site and with design documentation.
B. That Council (Interim Administrator of Ipswich City Council) approve a variation to Contract No. 13139 with J. MAC Constructions Pty Ltd for the provision of Landscaping and Services Completion Works as set out in Attachments 1 and 2.
C. That the Chief Executive Officer be authorised to administer contract variations for the Design and Construction of Ipswich City Mall Upgrade Nicholas St and Union Pl, Contract No. 13139 and to do any other acts necessary to implement Council’s decision in accordance with section 13(3)(c) of the Local Government Act 2009.
** Item includes confidential papers
and any other items as considered necessary.
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Economic Development Committee Meeting Agenda |
14 May 2019 |
ITEM: 1
SUBJECT: Statutory Expression of Interest for partners of Fire Station 101
AUTHOR: Project Manager (Fire Station - Secondment)
DATE: 1 May 2019
This is a report concerning a proposed statutory Expressions of Interest seeking to establish partners of Fire Station 101.
Since opening in March 2016, Fire Station 101 (FS101) has operated as a membership based start-up incubator, co-working space and events facility. FS101 has worked with over 180 start-up businesses who have secured over $600,000 in initial investment, spawned 15 new companies and the hub has hosted over 150 events.
In 2018 the ownership and operations of FS101 were transferred wholly to Council from Ipswich City Developments and Ipswich City Enterprises. The transfer and integration of FS101 into Council’s Office of Economic Development has maximised Council’s investment and resources in the delivery of innovation, business accelerator, technology and smart city activities delivering increased economic, workforce and community outcomes.
As we look to the future of FS101, a review of community needs, market factors and operating models has lead the team to explore alternative ways to deliver relevant products and services through FS101 as a centre of excellence that grows knowledge, encourages collaboration and develops skills to drive social and economic outcomes for Ipswich.
Consequently an expression of interest for FS101 partners is recommended, seeking proposals from organisations to deliver products and services that will improve and enhance community knowledge and skills to build innovation capability.
That the Interim Administrator of Ipswich City Council resolve:
A. That Council (Interim Administrator of Ipswich City Council) resolve that it is satisfied that the calling of Expressions of Interest under section 228(5) of the Local Government Regulation 2012, as detailed in the report by the Project Manager (Fire Station 101) dated 1 May 2019, is in the public interest for the following reason:
It will allow Council to identify potential contractors who are serious contenders for the provision of products and services that will improve or enhance knowledge and skills to build innovation capability without putting all contenders to the expense of preparing a full tender response in the initial stages.
B. That Council (Interim Administrator of Ipswich City Council) resolve to invite Expressions of Interest under section 228(5) of the Local Government Regulation 2012, as detailed in the report by the Project Manager (Fire Station 101) dated 1 May 2019, for products and services that will improve or enhance knowledge and skills to build innovation capability.
There are no related party matters associated with this report.
Strengthening our local economy and building prosperity
FS101 has developed into a significant regional hub for collaboration and innovation, building community capability and opportunity. It is a key civic asset that continues to facilitate objectives and outcomes prioritised in the Advance Ipswich Plan and the Economic and Workforce Development Plan, such as:
· Lead an innovation and digital technology agenda enabling new ways to working and living and be recognised as a national centre for smart city research, development and solutions
· Strengthen and diversify the local digital economy
· Drive the enhancement of existing industries and the emergence of new industries to create a diversified economy and economic prosperity
· Enable business diversification, adapting and responding to technological advances and creating an attractive economic environment for business investment
FS101 stands as a unique offering in the market, as an established and mature innovation hub FS101 has strong brand awareness in the start-up, business and government communities and has achieved momentum and organic growth.
However, it is recognised that for FS101 to continually improve its community value it must look for more effective ways to generate relevant outputs and outcomes. An evidence-based approach to the products and services has been developed as well as a strengthening and enhancement of these through a partnership approach.
Due to the niche market in which many capable providers already operate and rather than functioning in competition with existing private sector specialists, mutually beneficial partnership arrangements may offer an opportunity to leverage industry experience and generate the most cost effective and successful outcome.
Consequently a Request for Expressions of Interest (EOI) to partner with FS101 has been developed. The EOI will seek proposals from organisations to partner with FS101 with the intent to deliver products and services that will improve or enhance knowledge and skills to build innovation capability.
Through the EOI, partner proposals will be sought for the following:
· Management or co-management of the daily operations of the facility; and/or
· Development, delivery and/or coordination of products and services such as programs, activities, and events focused on knowledge and skill and capability development of FS101 members and the community; and/or
· Leveraging of their existing networks, partnerships and industry knowledge for the benefit of FS101 and broader community; and/or
· Raising the profile of and promote FS101 to industry, business and the community; and/or
· Identifying and pursuing alternative funding opportunities.
Proposals can cover one, several or all of the key programs as indicated above. A variety of operating and commercial models will also be considered. Additional projects may be added from time to time by mutual agreement. Additional projects may be proposed by either Council or the chosen partner(s). Proponents may provide information in their proposals on recommended projects that could support Council’s agenda for FS101.
In addition to improving or enhancing knowledge and skills to build capability, the objectives sought through this EOI and ultimately the delivery of appropriate partnerships include:
a) Solving local business problems and identify new market opportunities; and/or
b) Generating projects that provide social value; and/or
c) Creating jobs and generating economic value; and/or
d) Generating new revenue streams for FS101 with a long-term goal of financial sustainability; and/or
e) Increasing return on investment for ratepayers; and/or
f) Positioning Ipswich as an innovative community; and/or
g) Allowing council to increase its community advocacy role.
To deliver the EOI current labour resources are deemed sufficient. Additional materials and services budget will be required to enter into any appropriately determined partnership arrangement, however this allowance has been proposed in 2019-2020 budget considerations.
The major risks and proposed solutions associated with the proposed EOI are outlined below:
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Risk |
Category |
Rating |
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Don’t receive quality responses |
Supply |
High |
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Receive responses that do not provide value for money |
Finance and Economic |
Medium |
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Overall Rating: |
High |
To reduce the above risks occurring a desktop analysis of potential respondents will be conducted and these respondents may be directly informed of when the EOI will be released if deemed appropriate.
The major risks and proposed solutions associated with not approving the proposed EOI are outlined below:
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Risk |
Category |
Rating |
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Continue to deliver current products and services |
Finance and Economic |
High |
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Overall Rating: |
High |
The outcome of continuing to deliver current products and services is the missed opportunity to leverage the existing position of FS101 to deliver social and economic outcomes for Ipswich.
This report and its recommendations are consistent with the following legislative provisions:
Local Government Act 2009
The key stakeholders are Economic Development and Marketing Department staff and have thus been consulted in relation to the proposed EOI.
Fire Station 101 builds the capability to innovate through being a centre of excellence that grows knowledge, encourages collaboration and develops skills to drive social and economic outcomes for Ipswich. It has been recognised through a review process that for Fire Station 101 to achieve its full potential and thus deliver social and economic outcomes for Ipswich, the products and services currently being offered require improvement. An evidence-based approach to the products and services has been developed as well as a strengthening and enhancement of these through a partnership approach.
Consequently an EOI to partner with Fire Station 101 has been developed. The purpose of the proposed EOI is to seek proposals from organisations to partner with Fire Station 101 with the intent to deliver products and services that will improve or enhance knowledge and skills to build innovation capability.
Jodie Welsh
Project Manager (Fire Station - Secondment)
I concur with the recommendations contained in this report.
Paul Massingham
Economic Development Manager
I concur with the recommendations contained in this report.
Ben Pole
Chief Operating Officer (Economic Development and Marketing)
“Together, we proudly enhance the quality of life for our community”
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Economic Development Committee Meeting Agenda |
14 May 2019 |
ITEM: 2
SUBJECT: Wind-Up of Ipswich City Properties Pty Ltd
AUTHOR: Commercial Asset Manager
DATE: 26 April 2019
This is a report concerning the progress of the winding-up of Ipswich City Properties Pty Ltd (ICP), a 100% owned entity of Ipswich City Council (Council), as per the formal plan which was tabled by the Chief Operating Officer Finance and Corporate Services at the Project Steering Committee meeting held on 8 April 2019. The wind-up plan is to have current ICP assets, licences, leases, intellectual property and operations transferred and incorporated into Council by 30 June 2019. The final deregistration process is then scheduled to occur from July to December 2019.
That the report be received and the contents noted.
Ipswich City Council
McGrath Nicol
Clayton Utz
King and Wood Mallesons
Managing growth and delivering key infrastructure
At the meeting of the Board of ICP on 17 April 2019, the Board resolved that a report be prepared for the next meeting of Ipswich City Council in relation to the current engagement of ICP and ICC personnel with McGrath Nicol and Clayton Utz for the coordination of all activities and processes directed at achieving a final winding up of ICP by 30 June 2019. The information in this report should be read in conjunction with the “Ipswich City Council – Ipswich City Properties Pty Ltd Transition Plan Status Update” from McGrath Nicol dated 23 April 2019 which appears as Attachment 1.
Clayton Utz were engaged by ICP on 23 April 2019 to advise on and carry out all legal requirements associated with ICP’s involvement in the winding-up process. This includes arranging for the following:
1. Transfer of freehold land
2. Transfer of leasehold – 2 Bell St
3. Queensland Rail (QR) option
4. Infrastructure credits
5. Intellectual property
6. Deed of release of ICP from Council to forgive debt at the end of the above processes and before liquidation/de-registration of ICP.
In addition to the ongoing interaction between ICP and Council personnel with Clayton Utz, McGrath Nicol and King and Wood Mallesons (the latter two acting under instructions from Council), JLL Advisory Services were commissioned by ICP on 18 April 2019 to undertake a new valuation of the ICP owned property assets in advance of the planned transfer of these assets to Council. McGrath Nicol are actively assisting the winding-up process in having already finalised the action plan and schedule to enable the facilitation and monitoring of targeted deliverables and timeframes. King and Wood Mallesons have been engaged by Council to provide an independent review of Clayton Utz documents, with Council and McGrath Nicol managing this process to ensure that no duplication of legal matters or conflicting advice occurs. ICP understands that King and Wood Mallesons will be providing Council with stamp duty advice regarding corporate reorganisation and that they will prepare and lodge an exemption request with the Office of State Revenue on Council’s behalf. Council’s Finance team and McGrath Nicol have had discussions regarding the loan account depending on asset values, and other balance sheet items (e.g. debtors / creditors).
Other activities being covered by the various teams involved from these organisations include the following:
1. Asset Register
2. Leases and Licences register (tenants)
3. Supplier/Consultants associated with Nicholas St – Ipswich Central redevelopment
4. Suppliers – Operational and services
5. Confirmation of title searches (which have already been undertaken)
Further to the above, a meeting on 8 May 2019 has been scheduled with Council’s General Counsel and City Solicitor, by ICP and Council Finance personnel involved in the winding-up process, to progress matters involving the assignment and subsequent management of current ICP leases/licences once the property assets have been transferred into Council ownership, along with the novation of relevant ICP contracts across to Council. Also to be discussed at this meeting will be the establishment of an internal plan to deal with any procurement issues arising as and from the date of transfer of assets from ICP to Council and Council’s management as and from that transfer date.
Other activities currently being pursued in relation to the winding-up process include:
1. Engagement with QR on the 2 Bell St lease and the remaining Ellenborough St purchase option.
2. Location of securities and BG’s for contractors Hutchinson, JMac and James Trowse.
3. Follow up by Ranbury with Council P&D on available Infrastructure credits for the Project.
4. A review of all ICP records to identify all consultancy engagements and tax invoices for both the Project and for property management operational and services requirements.
5. The integration of seconded ICP staff back to Council and the cancellation of relevant secondment agreements.
A Scope and Fee Estimate received from Clayton Utz for an amount of $33,500 was formally approved by the Board of ICP on 18 April 2019 to cover ICP’s legal requirements involved with the winding-up process of ICP by 30 June 2019 at its cost. All other ICP generated resourcing related to the winding-up process is being handled in-house by ICC personnel seconded to ICP. The involvement of McGrath Nicol and King and Wood Mallesons with the winding-up process are under separate terms of engagement issued by Council as previously authorised by the Chief Operating Officer Finance and Corporate Services and are estimated to be around $60,000 to $80,000.
There are no risk management implications associated with this report.
This report and its recommendations are consistent with the following legislative provisions:
Local Government Act 2009
No community consultation is required for this report.
This report provides confirmation that the ongoing and active management process between the relevant parties involved, which is focussed on achieving a final winding up of ICP by 30 June 2019, remains on schedule as at 24 April 2019. With approximately two months to run prior to the required completion deadline being reached, it is the view of all parties involved that the required outcome is achievable by that date, utilising the combined resources currently dedicated to the task.
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1. |
Transition Plan Status Update - McGrath Nicol ⇩ |
Steve Bannister-Tyrrell
Commercial Asset Manager
I concur with the recommendations contained in this report.
Andrew Knight
Chief Operating Officer (Finance and Corporate Services)
“Together, we proudly enhance the quality of life for our community”
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Economic Development Committee Meeting Agenda |
14 May 2019 |
ITEM: 3
SUBJECT: Ipswich Central Program Report No. 11 to 16 April 2019
AUTHOR: Business Support Officer
DATE: 2 May 2019
This is a report concerning a monthly update for the Ipswich Central Program of Works.
That the report on the Ipswich Central Program Report No. 11 effective to 16 April 2019 be received and the contents noted.
Program Management Partner, Ranbury Management Group – for the Ipswich CBD Transformation Project.
Strengthening our local economy and building prosperity
This report includes Monthly Program Report No. 11 for Ipswich Central effective to 16 April 2019. It is to inform the Committee of the progress of the redevelopment works, including status of design, procurement, programme, potential risks with related mitigation strategies, etc.
Not applicable
Not applicable
This report and its recommendations are consistent with the following legislative provisions:
Local Government Act 2009
Not applicable
This report is provided as a monthly update on the Ipswich Central Program of Works.
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1. |
Summary Report No 11 to 16 April 2019 ⇩ |
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CONFIDENTIAL |
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2. |
Nicole Denman
Business Support Officer
I concur with the recommendations contained in this report.
Sean Madigan
Chief Operating Officer (Health, Security and Regulatory Services)
“Together, we proudly enhance the quality of life for our community”
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Economic Development Committee Meeting Agenda |
14 May 2019 |
ITEM: 4
SUBJECT: Nicholas Street and Union Place - Landscaping and Services Completion Works - Nicholas Street - Ipswich Central
AUTHOR: Project Accountant
DATE: 7 May 2019
This is a report concerning the delivery of the remaining scope (yet to be awarded) of construction works (“Remainder Works”) within Nicholas Street and Union Place, for Nicholas St – Ipswich Central, which includes the completion of all construction works above pavement level.
That the Interim Administrator of Ipswich City Council resolve:
A. That Council (Interim Administrator of Ipswich City Council) resolve it is satisfied under section 235(a) of the Local Government Regulation 2012 (Regulation) that the exemption under s235(a) of the Regulation applies and that J. MAC Constructions Pty Ltd is the only supplier reasonably available to it to provide Landscaping and Services Completion Works for Nicholas Street and Union Place for the following reason:
Allows project delivery timeframes to be achieved, provides opportunity for savings through economies of scale with the Contractor, and mitigates interface risks both on site and with design documentation.
B. That Council (Interim Administrator of Ipswich City Council) approve a variation to Contract No. 13139 with J. MAC Constructions Pty Ltd for the provision of Landscaping and Services Completion Works as set out in Attachments 1 and 2.
C. That the Chief Executive Officer be authorised to administer contract variations for the Design and Construction of Ipswich City Mall Upgrade Nicholas St and Union Pl, Contract No. 13139 and to do any other acts necessary to implement Council’s decision in accordance with section 13(3)(c) of the Local Government Act 2009.
JMAC Constructions Pty Ltd
Strengthening our local economy and building prosperity
Ipswich City Council (ICC) called open public tenders for the Design and Construction of Nicholas Street and Union Place in April 2018. J MAC Constructions Pty Ltd (JMAC) was successful and was appointed as the Principal Contractor in November 2018.
The scope of works awarded under the contract included for the full design of all works within Nicholas Street and Union Place, but construction of part only of the full scope of works. The Remainder Works was to be awarded as a separate contract following the completion of JMAC’s contract.
As part of the tender process currently underway for the Administration Building, Library, Civic Space and Carpark refurbishment works (Main Contract), a Separable Portion (SP5) has been included for the completion of the Remainder Works. The Remainder Works has been included in the current tender for the Main Contract as a provisional sum.
Two options have been identified for the delivery of the Remainder Works:
· Remainder Works are delivered by the Main Contractor
· Remainder Works are delivered by JMAC as a variation to their existing Contract
A Strategic Procurement Plan has been prepared and is attached to this report, detailing its objectives and how they will be achieved and measured, with option identification and analysis.
Rider Levett Bucknall (RLB) has reviewed the JMAC variation and have endorsed the proposed construction costs proposed by JMAC. It should be noted that the proposal includes a market-tested provisional sum for electrical work that will be competitively tendered by JMAC.
FINANCIAL/RESOURCE IMPLICATIONS
A detailed comparison of tender price vs existing provisional sum is included in Attachment 2. Resource costs of delivering the works are included in the Tender sum. Existing project resources will be utilised to manage the Contractor.
Identification of key risks are included in Attachments 1 and 2. Management of such risks are in accordance with ICC’s Risk Management Framework and guidelines, as stated in the CBD Transformation Project Program Management Plan.
This recommendation is being made to reduce the probability of scope-gaps and design conflicts for this work which is linked to JMAC’s current scope. Furthermore, we anticipate JMAC will be more flexible with regard to incorporating any changes to scope or program that may arise in finalizing the timing of this work.
This report and its recommendations are consistent with the following legislative provisions:
Local Government Act 2009
This is a scope of work within the overall Program of Works for Nicholas St – Ipswich Central, and as such does not require any additional specific community consultation as this has been undertaken as part of the overall Program of Works.
It should be highlighted that JMAC currently have an established relationship with adjacent stakeholders and we recommend maintaining continuity in this relationship.
It is recommended Council resolve to adopt the Strategic Procurement Plan and engage JMAC to deliver the Remainder Works as a variation to their existing Contract.
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1. |
Strategic Procurement Plan ⇩ |
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CONFIDENTIAL |
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2. |
Brett Edmunds
Project Accountant
I concur with the recommendations contained in this report.
Sean Madigan
Chief Operating Officer (Health, Security and Regulatory Services)
“Together, we proudly enhance the quality of life for our community”
