IPSWICH
CITY
COUNCIL
AGENDA
of the
Governance Committee
Held in the Council Chambers
2nd floor – Council Administration Building
45 Roderick Street
IPSWICH QLD 4305
On Tuesday, 13 August 2019
At 12.30 pm or within any period of time up to a maximum of 10 minutes after the conclusion of the Environment Committee.
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MEMBERS OF THE Governance Committee |
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Interim Administrator Greg Chemello (Chairperson) |
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Governance Committee Meeting Agenda |
13 August 2019 |
Governance Committee AGENDA
12.30 pm or within any period of time up to a maximum
of
10 minutes after the conclusion of the Environment Committee, on Tuesday, 13 August
2019
Council Chambers
|
Item No. |
Item Title |
Page No. |
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1 |
Corporate Services Operational Report |
10 |
|
2 |
Review of Delegations to Chief Executive Officer |
34 |
|
3 |
Proposed Complaints Management Framework |
77 |
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4 |
Monthly Performance Report - June 2019 |
110 |
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5 |
Overdue Rates and Charges April to June 2019 Qtr |
118 |
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6 |
Current Situation of Legal Services under Whole of Government and Local Buy arrangements |
122 |
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7 |
Current situation of Library Resources under Local Buy arrangement |
126 |
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8 |
Microsoft Enterprise Agreement and Server Cloud Enrolment Contract - 3 Years |
130 |
** Item includes confidential papers
Governance Committee NO. 8
13 August 2019
AGENDA
1. Corporate Services Operational Report
This is a report concerning the operational performance and key activities undertaken by the Corporate Services Department for the period of 31 May 2019 to 31 July 2019.
Recommendation
That the report be received and the contents noted.
2. Review of Delegations to Chief Executive Officer
This is a report concerning the ongoing review of delegations to the Chief Executive Officer (CEO) and a proposal to repeal some delegations which relate to operational matters.
Recommendation
That the Interim Administrator of Ipswich City Council resolve:
A. That the delegation titled “Adoption and/or Amendment of Position Outlines” be repealed.
B. That the delegation titled “Amendment of Department structures and descriptions” be repealed
C. That the delegation titled “Assess and Accept Quotes – Standard Desktop Operating Environment” be repealed.
D. That the delegation titled “Changing Domestic Refuse and Recycling Service Collection Days” be repealed.
E. That the delegation titled “Council Business Opportunities with Ipswich City Enterprises Pty Ltd” be repealed.
F. That the delegation titled “Designate the Gallery and Exhibition Names of Ipswich Art Gallery” be repealed.
G. That the delegation titled “Entertainment and other incurred Business Expenses” be repealed.
H. That the delegation titled “Federal Award Performance Appraisal System” be repealed.
I. That the delegation “Negotiation of Term Contracts in Relation to the Restructure of Strategic and Business Services Branch” be repealed.
J. That the delegation titled “Pre-Placement Medical Policy” be repealed.
K. That the delegation titled “Reimbursement of Interview Expenses Policy” be repealed.
L. That the delegation titled “Request to Adopt and/or Alter Customer Request Types and Due Dates” be repealed.
M. That the delegation titled “Safe City Monitoring Function” be repealed.
N. That the delegation titled “Exercise the powers of Council under the Local Government Act 2009” be amended as detailed in Attachment 15.
O. That the delegation titled “Exercise the powers of Council under the Local Government Regulation 2012” be amended as detailed in Attachment 16.
3. Proposed Complaints Management Framework
This is a report concerning the adoption of a new Complaints Management Framework, a deliverable of Transformation Project #6 “Complaints Management Framework”.
Recommendation
That the Interim Administrator of Ipswich City Council resolve:
That Council (Interim Administrator of Ipswich City Council) adopt the Complaints Management Framework as outlined in Attachment 1.
4. Monthly Performance Report - June 2019
This is a report concerning Council performance for the period ending 30 June 2019, submitted in accordance with Section 204 of the Local Government Regulation 2012.
Recommendation
That the report be received and the contents noted.
5. Overdue Rates and Charges April to June 2019 Qtr
This is a report concerning rate arrears and rate collection statistics for the period April - June 2019.
Recommendation
That the report be received and the contents noted.
6. Current Situation of Legal Services under Whole of Government and Local Buy arrangements
This is a report concerning a refresh of the Legal Services engagements under the Whole of Government and Local Buy arrangements currently being utilised by Ipswich City Council.
In 2017 Council undertook a procurement process to establish a panel of legal service providers accessing the Whole of Government and Local Buy Panels. Each engagement under the panel is managed through Legal Services branch and appropriately authorised.
Following a recent review of the panel arrangements detailed below; based on expenditure to date and forecast over the remaining time of the contracts, the total forecast expenditure for legal services provided by all providers on the panel is approximately $4 million.
Accordingly, Council approval is sought to continue the engagements of providers under the existing Whole of Government and Local Buy panels.
Recommendation
That the Interim Administrator of Ipswich City Council resolve:
A. That the Interim Administrator of Ipswich City Council (“Council”) resolve that Council continue the engagement of external legal service providers from the existing Whole of Government and Local Buy arrangements noting the estimated financial expenditure as outlined in the report by the Senior Procurement Officer dated 22 July 2019.
B. That the Chief Executive Officer be authorised to negotiate and finalise the terms of the appointment to be executed by Council and to do any other acts necessary to implement Council’s decision in accordance with section 13(3) of the Local Government Act 2009.
7. Current situation of Library Resources under Local Buy arrangement
This is a report concerning increased financial approval for Library Resources under the Local Buy arrangement currently being utilised by Ipswich City Council.
In 2016 Council undertook a procurement process to appoint James Bennett Pty Ltd for the provision of Library resources through the Local Buy arrangement. At the time of the initial procurement process, the estimated total expenditure over the contract period was less than $2 million and accordingly the Chief Executive Officer executed the arrangement.
Following a recent review of the arrangement detailed below in the report, it was identified that as the resources for the new Springfield Library and the likely requirements for the new Rosewood library have or will be procured through the arrangement, the expenditure to date and forecast over the remaining time of the contract is estimated to be approximately $3 million in total.
Accordingly, Council approval is sought to continue the engagement of James Bennett Pty Ltd under the Local Buy arrangement.
Recommendation
That the Interim Administrator of Ipswich City Council resolve:
A. That the Interim Administrator of Ipswich City Council (“Council”) resolve that Council continue the engagement of Library Resources BUS255-0116 (James Bennett Pty Ltd) from the existing Local Buy arrangement noting the estimated financial expenditure as outlined in the report Senior Procurement Officer dated 22 July 2019.
B. That the Chief Executive Officer be authorised to negotiate and finalise the terms of the appointment to be executed by Council and to do any other acts necessary to implement Council’s decision in accordance with section 13(3) of the Local Government Act 2009.
8. Microsoft Enterprise Agreement and Server Cloud Enrolment Contract - 3 Years
This is a report concerning the Microsoft Enterprise Agreement (EA) and Server Cloud Enrolment (SCE) contract renewal.
Council’s current licencing arrangement for Microsoft EA (Enterprise Agreement) and SCE (Server and Cloud Enrolment) was due to expire on 31 July 2019. A provisional extension has been provided until 31 August 2019.
Recommendation
That the Interim Administrator of Ipswich City Council resolve:
A. That Council (Interim Administrator of Ipswich City Council) resolve to enter into a contract with Data#3 under Local Buy contract 274, for three (3) years for the Microsoft EA and SCE renewal with the M365 with Profiled user option In accordance with section 234 of the Local Government Regulation 2012.
B. That the Chief Executive Officer be authorised to negotiate and finalise the terms of the contract to be executed by Council and to do any other acts necessary to implement Council’s decision in accordance with section 13(3) of the Local Government Act 2009.
** Item includes confidential papers
and any other items as considered necessary.
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Governance Committee Meeting Agenda |
13 August 2019 |
ITEM: 1
SUBJECT: Corporate Services Operational Report
AUTHOR: Acting Executive Support and Research Officer
DATE: 31 July 2019
This is a report concerning the operational performance and key activities undertaken by the Corporate Services Department for the period of 31 May 2019 to 31 July 2019.
That the report be received and the contents noted.
There are no related parties associated with this report.
Listening, leading and financial management
The Corporate Services Department comprises of Legal and Governance, Finance, Information Communication and Technology (ICT), Procurement, and People and Culture. Attachment 1 outlines the operational performance and key activities of each of these branches within the Corporate Services Department.
There are no financial or resourcing implications associated with this report.
There are no risk management implications associated with this report.
Not applicable
The contents of this report did not require any community consultation.
The Corporate Services operational report provides an overview of the performance and key activities undertaken by the department for the period of 31 May to 31 July 2019.
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1. |
Corporate Services Operational Performance and Key
Activities Report ⇩ |
Erin Smith
Acting Executive Support and Research Officer
I concur with the recommendations contained in this report.
Andrew Knight
General Manager - Corporate Services
“Together, we proudly enhance the quality of life for our community”
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Meeting Agenda |
13 August 2019 |
ITEM: 2
SUBJECT: Review of Delegations to Chief Executive Officer
AUTHOR: Project Officer
DATE: 15 July 2019
This is a report concerning the ongoing review of delegations to the Chief Executive Officer (CEO) and a proposal to repeal some delegations which relate to operational matters.
That the Interim Administrator of Ipswich City Council resolve:
A. That the delegation titled “Adoption and/or Amendment of Position Outlines” be repealed.
B. That the delegation titled “Amendment of Department structures and descriptions” be repealed
C. That the delegation titled “Assess and Accept Quotes – Standard Desktop Operating Environment” be repealed.
D. That the delegation titled “Changing Domestic Refuse and Recycling Service Collection Days” be repealed.
E. That the delegation titled “Council Business Opportunities with Ipswich City Enterprises Pty Ltd” be repealed.
F. That the delegation titled “Designate the Gallery and Exhibition Names of Ipswich Art Gallery” be repealed.
G. That the delegation titled “Entertainment and other incurred Business Expenses” be repealed.
H. That the delegation titled “Federal Award Performance Appraisal System” be repealed.
I. That the delegation “Negotiation of Term Contracts in Relation to the Restructure of Strategic and Business Services Branch” be repealed.
J. That the delegation titled “Pre-Placement Medical Policy” be repealed.
K. That the delegation titled “Reimbursement of Interview Expenses Policy” be repealed.
L. That the delegation titled “Request to Adopt and/or Alter Customer Request Types and Due Dates” be repealed.
M. That the delegation titled “Safe City Monitoring Function” be repealed.
N. That the delegation titled “Exercise the powers of Council under the Local Government Act 2009” be amended as detailed in Attachment 15.
O. That the delegation titled “Exercise the powers of Council under the Local Government Regulation 2012” be amended as detailed in Attachment 16.
There are no related party matters associated with this report.
Listening, leading and financial management
Local governments are required to make numerous decisions every day to properly discharge their powers and responsibilities.
To enable local governments to focus on strategic issues, reduce the amount of meeting time required and address circumstances in which the majority of councillors must leave a council meeting due to a material personal interest or conflict of interest, local governments can delegate many of those decisions by resolution.
Section 257 of the Local Government Act 2009 (the Act) allows local governments to delegate their powers by resolution to the CEO. As part of the ongoing review of council’s delegations it has been identified there are 13 delegations to the CEO which can be repealed as they relate to operational matters. Section 13 (3) of the Act provides the CEO with the power to make these decisions without an Instrument of Delegation being required (refer Attachment 1). The below table details each delegation with a brief history and reason for the proposed repeal.
To ensure that the operations of Council are not restricted in any way by the repeal of these delegations it is proposed to also amend the delegations to the CEO under the Act and the Local Government Regulation 2012 (the Regulation) to remove the restrictions on the powers which have been delegated. This would ensure that all powers contained in the Act and Regulation are able to be delegated to the CEO without conditions, negating the need for Councillor consultation prior to exercising the power. The proposed changes to these delegations are shown in track changes in Attachments 15 and 16. The updated delegations have been transposed to the new delegation template and are shown in Attachments 17 and 18.
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Title of Delegation |
Reason for Repeal |
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Adoption and/or Amendment of Position Outlines |
The delegation was originally adopted in 1998 and places a restriction on the CEO to prevent the creation of a new position or determine if a position is redundant. This is an operational matter which is covered under Section 13(3) of the Local Government Act 2009 |
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Amendment of Department structures and descriptions |
The delegation was originally adopted in 1998 and places a restriction on the CEO to prevent the creation of additional positions. This is an operational matter which is covered under Section 13(3) of the Local Government Act 2009 |
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Assess and Accept Quotes - Standard Desktop Operating Environment |
The delegation was originally adopted in May 1998 and provided the power to assess and accept quotes for the design and implementation of a standard desktop operating environment. This is an operational matter which is covered under Section 13(3) of the Local Government Act 2009 |
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Changing Domestic Refuse and Recycling Service Collection Days |
The delegation was originally adopted in 2002 and places consultation restrictions on the CEO. This is an operational matter which is covered under Section 13(3) of the Local Government Act 2009 |
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Council Business Opportunities with Ipswich City Enterprises Pty Ltd |
The delegation provides the power to enter into an arrangement with Ipswich City Enterprises Pty Ltd. As this company no longer exists the delegation is no longer required |
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Designate the Gallery and Exhibition Names of Ipswich Art Gallery |
The delegation was originally adopted in October 1999 with an amendment made in June 2008. The Art Gallery no longer has corporate sponsors. This is an operational matter which is covered under Section 13(3) of the Local Government Act 2009 |
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Entertainment and other incurred Business Expenses |
This delegation was originally adopted in November 2000. Employees should not be incurring these costs on personal credit cards or income. Any entertainment expenses or business expenses which are unable to be paid via invoice should be placed on a Council credit card |
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Federal Award Performance Appraisal System |
The delegation was originally adopted in 2004. This is an operational matter which is covered under Section 13(3) of the Local Government Act 2009 |
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Negotiation Of Term Contracts In Relation To The Restructure Of Strategic And Business Services Branch |
The delegation was originally adopted in December 2003 and relates to the creation Services Queensland (Peak) |
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Pre-Placement Medical Policy |
The delegation was originally adopted in June 1996 and provides the power to implement a policy relating to operational matters. As this is an operational matter it is covered under Section 13(3) of the Local Government Act 2009 |
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Reimbursement Of Interview Expenses Policy |
The delegation was originally adopted in June 1996 and provides the power to implement a policy relating to operational matters. As this is an operational matter it is covered under Section 13(3) of the Local Government Act 2009 |
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Request To Adopt And/Or Alter Customer Request Types And Due Dates |
The delegation was originally adopted in July 2003 and relates to the use of Pathway Customer Service. This is an operational matter which is covered under Section 13(3) of the Local Government Act 2009 |
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Safe City Monitoring Function |
This delegation was originally adopted in October 1995. Any release of information from Safe City video footage is governed by the Information Privacy Act 2009 and Right to Information Act 2009 |
There are no resourcing or budget implications as a result of this report.
The delegations which are the subject of this report are related to operational decisions, the responsibility of the CEO as per section 13(3) of the Act. The Delegations also place restrictions on the CEO or require consultation with Councillors before a decision can be made. This could be viewed as Councillors having influence or providing direction to Council staff over operational matters of Council. Repealing these delegations mitigates such a risk.
This report and its recommendations are consistent with the following legislative provisions:
Local Government Act 2009.
The contents of this report did not require any community consultation.
As part of the ongoing review of Council’s delegations and sub-delegations it has been identified that there are 13 delegations which are no longer required and can be repealed. Amendments are also being proposed to the delegation to the CEO for the Local Government Act 2009 and the Local Government Regulation 2012.
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1. |
Section 13(3) Local Government Act 2009 ⇩ |
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2. |
Adoption And/Or Amendment of Position Outlines ⇩ |
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3. |
Amendment of Department Structures and Descriptions ⇩ |
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4. |
Assess and Accept Quotes - Standard Desktop Operating
Environment ⇩ |
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5. |
Changing Domestic Refuse and Recycling Service Collection
Days ⇩ |
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6. |
Council Business Opportunities With Ipswich City
Enterprises Pty Ltd ⇩ |
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7. |
Designate the Gallery and Exhibition Names of Ipswich Art
Gallery ⇩ |
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8. |
Entertainment and Other Incurred Business Expenses ⇩ |
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9. |
Federal Award Performance Appraisal System ⇩ |
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10. |
Negotiation of term Contracts in relation to the
Restructure of Strategic and Business Services Branch ⇩ |
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11. |
Pre-Placement Medical Policy ⇩ |
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12. |
Reimbursement of Interview Expenses Policy ⇩ |
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13. |
Request to Alter And/Or Adopt Customer Request Due Dates ⇩ |
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14. |
Safe City Monitoring Function ⇩ |
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15. |
Track Changes - Local Government Act 2009 ⇩ |
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16. |
Track Changes - Local Government Regulation 2012 ⇩ |
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17. |
DRAFT - Delegation to CEO - Local Government Act 2009 ⇩ |
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18. |
DRAFT - Delegation to CEO - Local Government Regulation
2012 ⇩ |
Alisha Campbell
Project Officer
I concur with the recommendations contained in this report.
Angela Harms
Corporate Governance Manager
I concur with the recommendations contained in this report.
Tony Dunleavy
Acting General Counsel and City Solicitor
I concur with the recommendations contained in this report.
Andrew Knight
General Manager - Corporate Services
“Together, we proudly enhance the quality of life for our community”
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Governance Committee Meeting Agenda |
13 August 2019 |
Item 2 / Attachment 1.
Extract from the Local Government Act 2009
Part 1 Local governments and their constitution, responsibilities and powers
s13 Responsibilities of local government employees
(1) All employees of a local government have the same responsibilities, but the chief executive officer has some extra responsibilities.
(2) All employees have the following responsibilities—
(a) implementing the policies and priorities of the local government in a way that promotes—
(i) the effective, efficient and economical management of public resources; and
(ii) excellence in service delivery; and
(iii) continual improvement;
(b) carrying out their duties in a way that ensures the local government—
(i) discharges its responsibilities under this Act; and
(ii) complies with all laws that apply to local governments; and
(iii) achieves its corporate plan;
(c) providing sound and impartial advice to the local government;
(d) carrying out their duties impartially and with integrity;
(e) ensuring the employee’s personal conduct does not reflect adversely on the reputation of the local government;
(f) improving all aspects of the employee’s work performance;
(g) observing all laws relating to their employment;
(h) observing the ethics principles under the Public Sector Ethics Act 1994, section 4;
(i) complying with a code of conduct under the Public Sector Ethics Act 1994.
(3) The chief executive officer has the following extra responsibilities—
(a) managing the local government in a way that promotes—
(i) the effective, efficient and economical management of public resources; and
(ii) excellence in service delivery; and
(iii) continual improvement;
(b) managing the other local government employees through management practices that—
(i) promote equal employment opportunities; and
(ii) are responsive to the local government’s policies and priorities;
(c) establishing and implementing goals and practices in accordance with the policies and priorities of the local government;
(d) establishing and implementing practices about access and equity to ensure that members of the community have access to—
(i) local government programs; and
(ii) appropriate avenues for reviewing local government decisions;
(e) the safe custody of—
(i) all records about the proceedings, accounts or transactions of the local government or its committees; and
(ii) all documents owned or held by the local government;
(f) complying with requests from councillors under section 170A—
(i) for advice to assist the councillor carry out his or her role as a councillor; or
(ii) for information, that the local government has access to, relating to the local government.
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Meeting Agenda |
13 August 2019 |
ITEM: 3
SUBJECT: Proposed Complaints Management Framework
AUTHOR: Corporate Governance Manager
DATE: 16 July 2019
This is a report concerning the adoption of a new Complaints Management Framework, a deliverable of Transformation Project #6 “Complaints Management Framework”.
That the Interim Administrator of Ipswich City Council resolve:
That Council (Interim Administrator of Ipswich City Council) adopt the Complaints Management Framework as outlined in Attachment 1.
Listening, leading and financial management
Transformation Project #6 has been formed to ensure a best practice, legislatively compliant and transparent whole of Council approach to formal complaints made against Council as a result of dissatisfaction with services provided or a failure to provide a service.
It was also identified that the process for complaints and reports of wrongdoing against Council or staff, including allegations of fraud, corrupt conduct and public interest disclosure needed to be reviewed and streamlined to ensure transparency and good governance.
The draft Complaints Management Framework (refer Attachment 1) will form part of Council’s customer services and governance arrangements and is underpinned by the Local Government Act 2009 principles of transparency, effective processes, decision making in the public interest and demonstrates good governance of and by local government.
Whilst the adoption of the Complaints Management Framework does not, in itself, hold any financial implications, there is a requirement to increase the number of staff within the Complaints Management team to ensure that the area is appropriately resourced. The Corporate Services Department has made some appropriate budget arrangements to manage this increase in staff.
Ipswich City Council (Council) has a responsibility to the community to ensure that it has appropriate processes in place to ensure a consistent and better practice approach to the management of complaints.
The Complaints Management Framework will provide clear guidelines to identify, capture, report and proactively act on complaints management data and trends.
Without a Head of Power document in place to drive better practice, Council will fail to meet its legislative obligations, with a flow on effect of failing to build trust and confidence across staff and customers in the complaints management process.
This report and its recommendations are consistent with the following legislative provisions:
Local Government Act 2009
Local Government Regulation 2012
As part of the Transformation Project #6 project schedule, the team will engage with Council’s People and Culture Training Team to assist with the roll-out of appropriate staff training.
In addition to this, a communication plan, targeting both staff and the community will be formulated to ensure that all stakeholders feel supported to bring forward complaints for review and action as appropriate.
In line with Council’s commitment to provide enhanced service to the community, Transformation Project #6 was formed to address shortfalls in Council’s existing Complaints Management practices. The project team has created a new Complaints Management Framework which will provide clear, concise guidelines to support Council’s commitment to the formulation of a better way forward to manage complaints both internally and externally.
This process will not only meet Council’s commitment to good governance for the City of Ipswich but will allow Council to monitor and recognise trends through this process to allow Council to take a more pro-active approach to its service to the community.
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1. |
Draft Complaints Management Framework ⇩ |
Angela Harms
Corporate Governance Manager
I concur with the recommendations contained in this report.
Tony Dunleavy
Acting General Counsel and City Solicitor
I concur with the recommendations contained in this report.
Andrew Knight
General Manager - Corporate Services
“Together, we proudly enhance the quality of life for our community”
|
Governance Committee Meeting Agenda |
13 August 2019 |
ITEM: 4
SUBJECT: Monthly Performance Report - June 2019
AUTHOR: Finance Manager
DATE: 29 July 2019
This is a report concerning Council performance for the period ending 30 June 2019, submitted in accordance with Section 204 of the Local Government Regulation 2012.
That the report be received and the contents noted.
There are no related party matters associated with this report.
Strengthening our local economy and building prosperity
The attached report shows the financial results for whole of council and the Departments for YTD June. Whilst the overall net operating results (excluding capital revenue) was in line with budget with a surplus of $15.2m, operating revenue and expenses were above budget by approx. $7m.
Commentary and analysis of the results is included in the attached report. The majority of additional expenditure relates to various one-off transactions processed as part of the end of financial year closure and accruals and non-cash transactions in relation to the wind-up of Ipswich City Properties Pty Ltd including:
· $2.9m for the write off of the ICP loan as per Council's resolution in June 2019 which was in excess of the impairment taken as part of the 2018 financial statements
· $1.9m end of year employee expenses accrual for 4 days per QAO recommendations last year versus the traditionally budgeted 52 week pay periods. This is an adjustment in the current year to more correctly report costs as a corresponding accrual was not taken in the previous financial year.
· Additional EBA payments during the year as well as the recalculation of annual and long service leave provisions as part of the year end closure (reflecting decreases in bond rate and forward EBA increases) through the new eHub system has been posted to employee expenses totally approximately $1m.
As part of the finalisation of the financial statements for audit, the finance team is assessing any further accounting adjustments required as a result of events occurring just before or after the year end close which would impact the Net Result for the year.
There are no specific financial implications as a result of this report.
The implications of the financial results YTD will be monitored by management and any changes or risks to Council’s forecast position will be considered as part of Council’s budget amendments.
This report and its recommendations are consistent with the following legislative provisions:
Local Government Regulation 2012
The contents of this report did not require any community consultation.
The monthly performance report for June 2019 is included at Attachment 1.
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1. |
Monthly Performance Report - June 19 ⇩ |
Jeffrey Keech
Finance Manager
I concur with the recommendations contained in this report.
Andrew Knight
General Manager - Corporate Services
“Together, we proudly enhance the quality of life for our community”
|
Governance Committee Meeting Agenda |
13 August 2019 |
ITEM: 5
SUBJECT: Overdue Rates and Charges April to June 2019 Qtr
AUTHOR: Recoveries Manager
DATE: 10 July 2019
This is a report concerning rate arrears and rate collection statistics for the period April - June 2019.
RECOMMENDATION:
That the report be received and the contents noted.
reLATED PARTIES
There are no related party issues concerning this report.
Purpose of Report/Background
Overdue Rates & Charges:
Following the completion of the April-June 2019 rating period, the approximate balance of overdue rates and charges was $5,614,100 or 2.42% of the total rates. This represents a decrease in outstanding balances of $294,418 or 0.17% from the previous quarter.
Overdue Rates & Charges:
|
|
Yearly Levies |
Arrears $ End of quarter |
Arrears% |
Total Assessments |
Assessments in Arrears End of quarter |
% in Arrears |
|
June 2015 |
$175,942,886 |
$2,764,243 |
1.57 |
72,515 |
4,949 |
6.82 |
|
June 2016 |
$189,635,715 |
$3,034,312 |
1.60 |
75,207 |
5,090 |
6.77 |
|
June 2017 |
$205,419,598 |
$3,680,474 |
1.79 |
78,689 |
6,067 |
7.71 |
|
June 2018 |
$218,794,862 |
$4,929,782 |
2.25 |
82,232 |
6,089 |
7.40 |
|
Sept 2018 |
$222,098,438 |
$4,853,110 |
2.19 |
82,961 |
6,333 |
7.63 |
|
Dec 2018 |
$225,808,112 |
$5,690,022 |
2.52 |
83,416 |
6,802 |
8.15 |
|
Mar 2019 |
$228,341,889 |
$5,908,518 |
2.59 |
84,033 |
6,294 |
7.49 |
|
June 2019 |
$231,646,878 |
$5,614,100 |
2.42 |
84,911 |
7,355 |
8.66 |
The current rates arrears exceeding target are impacted by the following:
1. Two properties have substantial arrears and are in dispute with Council. The rates arrears associated with these two properties represents 0.67% of the total yearly levies and account for 28% of the total rate arrears.
2. Since mid-2017, predominantly due to these two substantial properties transitioning from a regularly paid to an unpaid status, the percentage of accounts in arrears has deteriorated. If the two properties were removed from the rate arrears calculation, Council’s performance for the quarter would be 1.75% (leading practice for local government recoveries).
Background to the two remaining properties with substantial arrears:
· The two properties (represented as black in the graph) are the subject of a dispute between Council and the owners regarding the rates categories levied. Progress in resolving these disputes is expected to be made over the next 12 months.
· A further two properties (previously represented by blue in the graph) have now been finalised with all arrears paid this past Quarter.
Arrears - Number of Assessments:
At the end of the April-June 2019 quarter, 7355 assessments remained in arrears. Of these, 6290 or 85% of assessments held balances outstanding of less than $1000, including 3523 or 48% with outstanding balances of less than $100.00.
Reminder Letters:
|
Quarter |
Reminder letters |
$ |
Second letter |
$ |
|
April - June 2015 |
8,634 |
$5,117,628 |
3,888 |
$2,320,978 |
|
April - June 2016 |
9,776 |
$5,767,789 |
4,247 |
$2,375,731 |
|
April-June 2017 |
11,102 |
$6,214,851 |
4,950 |
$3,023,858 |
|
April-June 2018 |
10,264 |
$6,566,455 |
5,561 |
$4,505,858 |
|
July-September 2018 |
12,022 |
$7,703,705 |
5,008 |
$3,568,896 |
|
October-December 2018 |
11,559 |
$7,492,422 |
4,919 |
$3,293,516 |
|
January-March 2019 |
11,184 |
$7,633,245 |
4,882 |
$3,451,631 |
|
April-June 2019 |
11,387 |
7,346,791 |
5,921 |
$4,208,937 |
Legal Actions undertaken to recover Rates:
The following actions were commenced, or finalised on behalf of Council during the April-June quarter 2019:
|
Action |
Number |
Value |
|
New Claims Filed |
80 |
$236,531 |
|
Filed Claims Paid in full prior to Judgement |
26 |
$77,036 |
|
Defences Lodged |
1 |
$2,371 |
|
Defences Resolved |
0 |
$0 |
|
Defences under Legal Dept Control |
5 |
$450,000 |
|
Judgments Granted |
13 |
$93,927 |
|
Sale of Land Resolutions |
0 |
$0 |
|
Rates paid prior to Auction during the quarter |
3 |
$29,660 |
|
Properties Auctioned |
0 |
0 |
|
Properties Sold at Auction |
0 |
0 |
|
Properties purchased by Council at Auction |
0 |
0 |
Legal/Policy Basis
This report and its recommendations are consistent with the following legislative provisions:
Local Government Regulation 2012
Conclusion
The target arrears percentage rate of 2.00% was exceeded by 0.42%, due largely to the impact of two properties with substantial rates arrears mentioned above.
Planned Actions
· Continue to apply collection strategies to non-owner occupied properties i.e. companies, trusts, vacant land, investment properties.
· Continue to apply collection strategies to habitual defaulters.
· Continued close maintenance of payment plans and escalation of breaches.
· Continued drive to liaise with banks and finance providers for payments in full.
Glen Wilson
Recoveries Manager
I concur with the recommendations contained in this report.
Jeffrey Keech
Finance Manager
I concur with the recommendations contained in this report.
Andrew Knight
General Manager - Corporate Services
“Together, we proudly enhance the quality of life for our community”
|
Governance Committee Meeting Agenda |
13 August 2019 |
ITEM: 6
SUBJECT: Current Situation of Legal Services under Whole of Government and Local Buy arrangements
AUTHOR: Senior Procurement Officer
DATE: 22 July 2019
Executive Summary
This is a report concerning a refresh of the Legal Services engagements under the Whole of Government and Local Buy arrangements currently being utilised by Ipswich City Council.
In 2017 Council undertook a procurement process to establish a panel of legal service providers accessing the Whole of Government and Local Buy Panels. Each engagement under the panel is managed through Legal Services branch and appropriately authorised.
Following a recent review of the panel arrangements detailed below; based on expenditure to date and forecast over the remaining time of the contracts, the total forecast expenditure for legal services provided by all providers on the panel is approximately $4 million.
Accordingly, Council approval is sought to continue the engagements of providers under the existing Whole of Government and Local Buy panels.
Recommendation/s
That the Interim Administrator of Ipswich City Council resolve:
A. That the Interim Administrator of Ipswich City Council (“Council”) resolve that Council continue the engagement of external legal service providers from the existing Whole of Government and Local Buy arrangements noting the estimated financial expenditure as outlined in the report by the Senior Procurement Officer dated 22 July 2019.
B. That the Chief Executive Officer be authorised to negotiate and finalise the terms of the appointment to be executed by Council and to do any other acts necessary to implement Council’s decision in accordance with section 13(3) of the Local Government Act 2009.
RELATED PARTIES
The legal services providers are as currently listed on the Whole of Government and Local Buy Arrangements
Advance Ipswich Theme Linkage
Listening, leading and financial management
Purpose of Report/Background
Ipswich City Council has an established in-house Legal Team (Legal and Governance Branch within the Corporate Services Department) to provide advice and facilitate the provision of legal services to Council. The in-house Legal Team has five (5) in-house Lawyers and one (1) Para-legal who provide the core legal services for Council. When additional resources and expertise are required, external legal firms are engaged to provide these legal services.
The Legal and Governance Branch is responsible for coordinating, instructing, managing and supervising the legal work undertaken by Law Firms engaged by Council, including monitoring the quality of work and the services provided, payment of related invoices and managing any performance issues which may arise. Prior to 2017 Council implemented its own approved Preferred Supplier Arrangement (PSA) which was utilised by the then Legal Services branch on behalf of all departments throughout Council.
However early in 2017 Corporate Procurement and Legal Branch, as part of the procurement strategy, identified the Whole of Government and Local Buy arrangements had established contracts with various and different suppliers, which had been developed from a public tender process. In accordance with the Local Government Regulation, Council was able to ascertain that the sound contracting principles were considered during the evaluation processes undertaken by both the State Government and Local Buy. Council identified from the two arrangements in place that there were several suppliers on each arrangement who provided legal services to Council.
Also as part of the market analysis that was undertaken at the time by Corporate Procurement, it was clearly evident that the legal services industry had price pressures for external legal work as their clients had increased demands for value for money and were expanding their use of small to mid-tier firms. Therefore, Council’s view at that time was that it would not be in the best interests of Council to approach the market, given that there were two sufficient arrangements established with clear pricing schedules and suppliers that could support Council in our service requirements.
Council entered into the Whole of Government arrangement for Legal Services until 31/03/2020 which is the expiry date of the arrangement. Similarly, Council entered into the Local Buy Legal Services arrangement in June 2017 until 31/05/2022 which is the expiry date of the arrangement. Due to the increased level of expenditure that was not foreseen at time of opting into these arrangements, it is now necessary as part of our refresh process to also ensure the necessary and appropriate financial approvals are obtained.
Financial/RESOURCE IMPLICATIONS
The estimated value of all legal services engagements under these arrangements in its entirety based on expenditure to date and forecast requirements, since Councils initial opt in commencement date, is approximately $4 million.
RISK MANAGEMENT IMPLICATIONS
A risk analysis has been undertaken in relation to this report, with all potential risks assessed and identified between low and not applicable.
Legal/Policy Basis
This report and its recommendations are consistent with the following legislative provisions:
Local Government Act 2009
Local Government Regulation 2012
For Local Buy arrangements - Pursuant to section 234 of the Local Government Regulation 2012 – A local government may enter into a contract for goods and services without first inviting written quotes or tenders if the contract is entered into under an LGA arrangement.
For Whole of Government arrangements - Pursuant to section 235 (f) of the Local Government Regulation 2012 – A local government may enter into a medium-sized contractual arrangement or large-sized contractual arrangement without first inviting written quotes or tenders if – the contract is made with , or under an arrangement with a government agency.
COMMUNITY and OTHER CONSULTATION
Legal and Governance Branch is the major stakeholder and has been consulted regarding this refresh process.
Conclusion
· It is recommended that Council continue the current engagement for Legal Services under the Whole of Government arrangement
· It is recommended that Council continue the current engagement for Legal Services under the Local Buy arrangement
· It is recommended that the CEO sign the letters of engagements to the listed suppliers for the supply of Legal Services to Council.
Wanda Schoenfisch
Senior Procurement Officer
I concur with the recommendations contained in this report.
Barbara Clarke
Procurement Manager
I concur with the recommendations contained in this report.
Jeffrey Keech
Finance Manager
I concur with the recommendations contained in this report.
Andrew Knight
General Manager - Corporate Services
“Together, we proudly enhance the quality of life for our community”
|
Governance Committee Meeting Agenda |
13 August 2019 |
ITEM: 7
SUBJECT: Current situation of Library Resources under Local Buy arrangement
AUTHOR: Senior Procurement Officer
DATE: 22 July 2019
This is a report concerning increased financial approval for Library Resources under the Local Buy arrangement currently being utilised by Ipswich City Council.
In 2016 Council undertook a procurement process to appoint James Bennett Pty Ltd for the provision of Library resources through the Local Buy arrangement. At the time of the initial procurement process, the estimated total expenditure over the contract period was less than $2 million and accordingly the Chief Executive Officer executed the arrangement.
Following a recent review of the arrangement detailed below in the report, it was identified that as the resources for the new Springfield Library and the likely requirements for the new Rosewood library have or will be procured through the arrangement, the expenditure to date and forecast over the remaining time of the contract is estimated to be approximately $3 million in total.
Accordingly, Council approval is sought to continue the engagement of James Bennett Pty Ltd under the Local Buy arrangement.
That the Interim Administrator of Ipswich City Council resolve:
A. That the Interim Administrator of Ipswich City Council (“Council”) resolve that Council continue the engagement of Library Resources BUS255-0116 (James Bennett Pty Ltd) from the existing Local Buy arrangement noting the estimated financial expenditure as outlined in the report Senior Procurement Officer dated 22 July 2019.
B. That the Chief Executive Officer be authorised to negotiate and finalise the terms of the appointment to be executed by Council and to do any other acts necessary to implement Council’s decision in accordance with section 13(3) of the Local Government Act 2009.
James Bennett Pty Ltd
Listening, leading and financial management
In August 2016 Corporate Procurement and the Library Branch, as part of the procurement strategy, identified Local Buy had established contracts with various suppliers which was developed from a public tender process. In accordance with the Local Government Regulation 2012, Council was able to ascertain that the sound contracting principles were considered during the evaluation processes undertaken by Local Buy.
Request for Quotes were sent to several Suppliers under Local Buy’s Library Resources arrangement for the supply of Library Books to Council’s Libraries. James Bennett responded with the most competitively priced response.
Council engaged James Bennett under Local Buy arrangement BUS255-0116 Library Resources to purchase books in accordance with the Local Government Regulation 2012, Section 234: Exception for LGA arrangement.
The CEO at the time endorsed the engagement as this was within his delegation.
After this was implemented, procurement activities identified the requirement for other resources such as, but not limited to, DVD’s and Music CD’s, press readers and more. Council sent out another Request for Quote to the Suppliers on Local Buy arrangement BUS255-0116 Library Resources and again James Bennett returned the most competitive submission.
Council’s Library and Corporate Procurement staff worked together ensuring best procurement practices and due diligence was followed.
The Local Buy term for this arrangement was up to 17 November 2018 with two twelve month extension options. Local Buy have extended this arrangement to 18 November 2020. Council executed an agreement with James Bennett for that term under the Local Buy terms and conditions.
Spend for this arrangement was initially predicted to be approximately $470,000 per annum.
The scope increased considerably with the Library taking full advantage of the Library Resources category which includes the supply of books, audio-visual and multi-media products, online goods and more. The Library, at the time of original engagement, did not plan for the supply including initial stocking of the Springfield Library and ongoing supply. Due to the increased level of expenditure that was not foreseen at time of opting into this arrangement and due to the expenditure going over the approved financial delegation it is now necessary to ensure the necessary and appropriate financial approvals are obtained.
There is no additional resourcing or budgeting implications. The operational costs associated with the provision of goods and services is an existing item within the Library Branch’s operational budget. The estimated value of this arrangement in its entirety based on expenditure to date and forecast requirements, since Councils initial opt in commencement date, is approximately $3 million.
A risk analysis has been undertaken in relation to this report, with all potential risks assessed and identified between low and not applicable.
This report and its recommendations are consistent with the following legislative provisions:
Local Government Act 2009
Local Government Regulation 2012
Library Services Branch is the major stakeholder and has been consulted regarding this additional financial approval process.
· It is recommended that Council continue the current engagement for Library Resources under the Local Buy arrangement
· It is recommended that the CEO sign the letters of engagements to James Bennett for the supply of Library Resources to Council.
Wanda Schoenfisch
Senior Procurement Officer
I concur with the recommendations contained in this report.
Barbara Clarke
Procurement Manager
I concur with the recommendations contained in this report.
Jeffrey Keech
Finance Manager
I concur with the recommendations contained in this report.
Andrew Knight
General Manager - Corporate Services
“Together, we proudly enhance the quality of life for our community”
|
Governance Committee Meeting Agenda |
13 August 2019 |
ITEM: 8
SUBJECT: Microsoft Enterprise Agreement and Server Cloud Enrolment Contract - 3 Years
AUTHOR: Interim Information and Communications Management and Support Manager
DATE: 30 July 2019
Executive Summary
This is a report concerning the Microsoft Enterprise Agreement (EA) and Server Cloud Enrolment (SCE) contract renewal.
Council’s current licencing arrangement for Microsoft EA (Enterprise Agreement) and SCE (Server and Cloud Enrolment) was due to expire on 31 July 2019. A provisional extension has been provided until 31 August 2019.
Recommendation/s
That the Interim Administrator of Ipswich City Council resolve:
A. That Council (Interim Administrator of Ipswich City Council) resolve to enter into a contract with Data#3 under Local Buy contract 274, for three (3) years for the Microsoft EA and SCE renewal with the M365 with Profiled user option In accordance with section 234 of the Local Government Regulation 2012.
B. That the Chief Executive Officer be authorised to negotiate and finalise the terms of the contract to be executed by Council and to do any other acts necessary to implement Council’s decision in accordance with section 13(3) of the Local Government Act 2009.
RELATED PARTIES
Supplier: Data#3 Limited
Advance Ipswich Theme Linkage
Listening, leading and financial management
Purpose of Report/Background
In reviewing the current options available, in line with the proposed ICT Strategy and forward technology planning, significant effort in investigating current options available to best support Council’s current state and future direction has been made. As the agreement is a three (3) year agreement, and there is not the option to change the model without potential significant financial impacts in the 3 year contract term, all options available have been reviewed.
There were 4 options presented for the Ipswich City Council Microsoft licencing renewal agreement.
- Like for Like on Premise Renewal
- M365 Cloud renewal
- M365 Cloud with Profiled Users
- O365 Cloud renewal
Like for Like on Premise Renewal + SCE
|
Details |
Amount |
|
Initial Year 1 amount |
$591,882.60 |
|
Skype for Business voice licences when go live |
$119,269.50 |
|
TOTAL – Year 1 |
$711,152.10 |
|
Optional extra – if transition to Office 365 in 3 year contract term, Office 365 licencing will need to be added |
$389,795.00 |
|
Potential cost impact per year |
$1,100,947.10 |
Note – Allows for access to on premise licencing and current SCE arrangement, including upgrades, but to upgrade or move to Office 365 within the 3 year contract period would increase the cost to over ~$1.1million/year under this arrangement.
M365 Cloud renewal + SCE
|
Details |
Amount |
|
Initial Year 1 amount |
$739,862.20 |
|
TOTAL – Year 1 |
$739,862.20 |
|
|
|
|
Optional variation – Price for M365 E5 - includes SfB Voice, ATP and Power BI. Refer to M365 Feature tab for full list |
$1,113,700.00 |
Note – M365 licencing allows for access to current on premise arrangement, and Office 365.
M365 Cloud with Profiled Users + SCE
|
Details |
Amount |
|
Initial Year 1 amount |
$662,236.41 |
|
TOTAL – Year 1 |
$662,236.41 |
Note – M365 licencing allows for access to current on premise arrangement, including upgrades, while supporting a technology shift to Office 365 within the 3 year contract arrangement. Profiled user option has allowed a reviewed version of licencing for a number of field based staff that do not currently have a device that touches the network. Access to SharePoint, printing and skype for business has been included in the reviewed licencing for these users.
O365 Cloud Renewal + SCE
|
Details |
Amount |
|
Initial Year 1 amount |
$680,072.10 |
|
TOTAL – Year 1 – see note below outlining risk |
$680,072.10 |
Note – Would be able to continue to access on premise licencing, but not upgrade anything past the current version, which creates a risk for Council being on unsupported versions.
Summary
|
Details |
Amount – Year 1 |
|
Option 1 - Like for Like on Premise Renewal + SCE (no allowance for O365) |
$711,152.10 |
|
Option 2 - M365 Cloud renewal + SCE |
$739,862.20 |
|
Option 3 - M365 Cloud with Profiled Users + SCE |
$662,236.41 |
|
Option 4 - O365 Cloud Renewal + SCE (no upgrades for on premise versions, creating a risk for Council) |
$680,072.10 |
Recommended option is Option 3, as it reduces the risk for Council of the current on premise arrangement, ensuring access to upgrades remain available, while supporting potential technology changes with Office 365 in the next 3 years. The cost analysis also supports Option 3.
Exclusions
The licencing model above is based on E3 licencing. To have full access to Power BI, the E5 licencing is required, and this is at an additional cost of $450,000/year to Council, on top of Option 3 below ($1,113,700/year total). The use of Power BI as an analytics tool will be reviewed in more depth as part of the ICT Strategy for Council.
A subscription to Power BI under the E3 licencing model is available at the following levels
1) Power BI Pro - $220/user/year. Ie – 50 users to develop reports that can be shared would be at a cost of $11,000/year
2) Power BI Enterprise - $49.50/user/year. 200 users reviewing dashboards that have been shared (ie. Managers) would be a cost of $9,900/year
Library public machines will be quoted separately, as are under an Education licencing model.
Financial/RESOURCE IMPLICATIONS
There are no resourcing or budgeting implications. The operational costs associated with agreement of this recommendation is >$2million over a three (3) year term. This is an existing item within the ICT operational budget.
RISK MANAGEMENT IMPLICATIONS
A risk analysis has been undertaken in relation to this report, with potential risks assessed identified as medium, due to the requirement for this licencing. Risk is associated with the cost of the engagement, not the product, or requirement.
Legal/Policy Basis
This report and its recommendations are consistent with the following legislative provisions:
Local Government Regulation 2012
COMMUNITY and OTHER CONSULTATION
The contents of this report did not require any community consultation.
Conclusion
To support the current state and potential future technology direction for Ipswich City Council, the recommended licencing options is M365 with Profiled users. This model supports the current on premise and SCE licencing, while also planning for the transition to Office 365 within the 3 year contract term. The profiled user option allows for a reduced licence option that still supports the operational functions for the relevant staff members.
In accordance with section 234 of the Local Government Regulation 2012 to apply for a three (3) year term, for which Council approval is sought to proceed with the renewal of the Microsoft EA and SCE.
Attachments and Confidential Background Papers
|
1. |
Quote for Microsoft EA and SCE ⇩ |
|
2. |
ICC EA Renewal BoM ⇩ |
Tony Welsh
Interim Information and Communications Management and Support Manager
I concur with the recommendations contained in this report.
Andrew Knight
General Manager - Corporate Services
“Together, we proudly enhance the quality of life for our community”
