IPSWICH

CITY

COUNCIL

 

 

AGENDA

 

 

of the

 

 

Council Ordinary Meeting

 

 

 

Held in the Council Chambers

2nd floor – Council Administration Building

45 Roderick Street

IPSWICH QLD 4305

 

 

On Tuesday, 10 December 2019

at 9:00 am

 


Council

Meeting Agenda

10 December

2019

 

BUSINESS

A.           OPENING OF MEETING:

B.           WELCOME TO COUNTRY OR ACKNOWLEDGEMENT OF COUNTRY:

C.           OPENING PRAYER:

D.           ATTENDANCES INCLUDING APOLOGIES AND LEAVE OF ABSENCE:

E.           CONDOLENCES:

F.            TRIBUTES:

Vote of thanks to the Interim Management Committee

G.           PRESENTATION OF PETITIONS:

H.           PRESENTATIONS AND DEPUTATIONS:

I.            CONFIRMATION OF MINUTES:

1.    Ipswich City Council - Minutes of Meeting of 19 November 2019..................... 5

J.            MAYORAL MINUTE:

K.           DECLARATIONS OF INTEREST IN MATTERS ON THE AGENDA:

The Interim Administrator made declarations of interest in the following committee:

-          Economic Development Committee – Items 2, 3, 4, 5 and 6

 

The Interim Administrator has proposed declarations of interest in the following Officer’s Report:

-            Project Management Services - Commonwealth Hotel and Retail Components Nicholas Street - Ipswich Central

L.            BUSINESS OUTSTANDING – MATTERS LYING ON THE TABLE TO BE DEALT WITH: 

M.          RECEPTION AND CONSIDERATION OF COMMITTEE REPORTS:

2.    Economic Development Committee's Report.................................................. 13

3.    Growth and Infrastructure Committee's Report.............................................. 19

4.    Communities Committee's Report................................................................... 23

5.    Environment Committee's Report.................................................................... 25

6.    Governance Committee's Report..................................................................... 27  

 

 

N.           OFFICERS' REPORTS:

·     Adoption of Meeting Conduct Policy and Public Participation at Council Ordinary Meetings Policy................................................................................................. 39

·     Acquisition of Land for Road Purposes Redbank Plains Road Stage 3.............. 63

·     Acquisition of Land for Road Purposes part of 14 William Street Blackstone. 71

·     Brisbane Lions Stadium Funding Agreement.................................................... 75

·     Budget Amendment - December 2019............................................................. 97

·     Delegation of Council Powers and Functions to Chief Executive Officer....... 145

·     Project Management Services - Commonwealth Hotel and Retail Components Nicholas Street - Ipswich Central................................................................................... 159

O.           NOTICES OF MOTION:

P.           QUESTIONS ON NOTICE:  

--ooOOoo--


Council

Meeting Agenda

10 December

2019

 

Unconfirmed Minutes of Council Ordinary Meeting

19 November 2019

Held in the Council Chambers, Administration Building

45 Roderick Street, Ipswich

The meeting commenced at 9.00 am

Pursuant to section 8.4.5 of Council’s Meeting Procedures Policy, the Interim Administrator invited the Interim Management Committee being Jan Taylor, Simone Webbe, Robert Jones, Stan Gallo and Steve Greenwood to address the Council on any matters before it.

 

The Interim Administrator advised that he is bound to declare Conflict of Interests and potential Conflict of Interests and that the members of the Interim Management Committee are not legally bound, however in accordance with the Interim Management Committee Charter they will also declare Conflict of Interests and potential Conflict of Interests.

 

ATTENDANCE AT COMMENCEMENT

Greg Chemello (Interim Administrator)

INTERIM MANAGEMENT COMMITTEE

Jan Taylor, Simone Webbe, Robert Jones, Stan Gallo and Steve Greenwood

WELCOME TO COUNTRY OR ACKNOWLEDGEMENT OF COUNTRY

Ipswich City Council respectfully acknowledges the Traditional Owners as custodians of the land upon which we meet. We pay our respects to their elders, past, present and emerging, as the keepers of the traditions, cultures and stories of a proud people.

OPENING PRAYER

Greg Chemello (Interim Administrator)

Let us in silence pray or reflect upon our responsibilities to the people of Ipswich.

We meet today to serve our community, to use our resources wisely and well, to represent all members of our community fairly and to make decisions that promote the common good.

APOLOGIES AND LEAVE OF ABSENCE

Nil

 

Confirmation of Minutes

 

Confirmation of Minutes of Ordinary Meeting

The Interim Administrator of the Ipswich City Council resolves:

That the Minutes of the Ordinary Meeting held on 28 October 2019 be confirmed.

The motion was put and carried.

 

Declarations of Interest in matters on the agenda

DECLARATIONS

The Interim Administrator declared interests in the following matters:

GROWTH AND INFRASTRUCTURE COMMITTEE

CONFLICT OF INTEREST

ITEM 4

Item 4 titled Proposed Amendment to Delegation – Exercise the Powers of Council under the Economic Development Act 2012.

 

The nature of the perceived interest is that he was formerly the General Manager of Economic Development Queensland which is the agency responsible for the Priority Development Area for Ripley.

 

As there is no personal or financial benefit to the Interim Administrator and the nature of the report being an amendment necessary because of a recent legislative amendment, he would participate in the meeting in relation to the matter.

 

Reception and Consideration of Committee Reports

 

Economic Development Committee

The Interim Administrator of the Ipswich City Council resolves:

That the Economic Development Committee Report No. 2019(11) of 12 November 2019 be received and adopted.

 

DISCUSSION

In relation to Item 2 titled City of Ipswich Business Visit to Japan and Taiwan, the Interim Administrator reiterated the comments he made at committee, both in November and April 2019, in relation to the Sister City relationships and the visit to Nerima, Tokyo, Nantou, Hsinchu and Taipei. He stated that as Interim Administrator he does not feel it is his role to adversely impact on long term Sister City relationships or create any new Sister City relationships. He further stated that he felt it was a matter for elected representation to determine and therefore in his view it is important that Ipswich honours its relationship with Nerima and attends the milestone 25 year anniversary of the Sister City relationship.

The motion was put and carried.

 

Growth and Infrastructure Committee

The Interim Administrator of the Ipswich City Council resolves:

That the Growth and Infrastructure Committee Report No. 2019(11) of 12 November 2019 be received and adopted.

CONFLICT OF INTEREST ITEM 4

The Interim Administrator informed the meeting that he has, or could reasonably be taken to have a perceived conflict of interest in Item 4 titled Proposed Amendment to Delegation – Exercise the Powers of Council under the Economic Development Act 2012.

 

The nature of the perceived interest is that he was formerly the General Manager of Economic Development Queensland.

 

The Interim Administrator confirmed that, as there is no personal or financial benefit to the Interim Administrator and the nature of the report being an amendment necessary because of a recent legislative amendment, he would participate in the meeting in relation to the matter.

 

DISCUSSION

The Interim Administrator commented on the following Items:

 

Item 1 titled Long Term Infrastructure Strategy, Framework and Asset Management Plans in that a significant amount of work went into the long term infrastructure planning and the asset planning framework for council and that at committee he had thanked officers for their role in the preparation of the framework. The Interim Administrator thanked officers again for their work stating that it was an excellent basis for long term infrastructure planning linked to Council’s long term financial plan.

 

Item 2 titled City of Ipswich Car Parking Pricing Strategy – in that Council will now undertake meaningful public engagement program to determine the communities’ views in relation to the draft strategy. The Interim Administrator stated that a lot of technical analysis went into the car parking strategy and one of the most regular comments from the public is car parking, particularly in the Ipswich central area.

 

Item 8 titled Review of Several School Zones Across the City - The Interim Administrator stated that it is important that he reiterates the process that was undertaken at committee where officers presented a very good technical report applying the State Government’s rules and guidelines on whether the school zones should be declared outside two particular schools and continue in a third.

 

He stated that the committee’s formal recommendation  is different to the officers’ recommendation in two cases and that it was the appropriate process Council needed to go through and that the officers did the appropriate technical report.

 

The Interim Administrator stated that in deciding this matter he took on board the broader community and school issues and queried the impact of installing school zones on traffic flow, volumes and congestion and on balancing all that out determined that Council should introduce school zones in the two areas identified.

 

He thanked the officers for the report and stated the he would not have suggested for a minute that they should have changed their technical recommendation.

The motion was put and carried.

 

Communities Committee

The Interim Administrator of the Ipswich City Council resolves:

That the Communities Committee Report No. 2019(11) of 12 November 2019 be received and adopted.

The motion was put and carried.

 

Environment Committee

The Interim Administrator of the Ipswich City Council resolves:

That the Environment Committee Report No. 2019(11) of 12 November 2019 be received and adopted.

The motion was put and carried.

 

Governance Committee

The Interim Administrator of the Ipswich City Council resolves:

That the Governance Committee Report No. 2019(11) of 12 November 2019 be received and adopted.

DISCUSSION

The Interim Administrator commented on the following Items:

Items 1, 2 and 3 in relation to the Review of Policies with the repeal of a number of old policies and the replacement with a lesser number of contemporary policies. He stated that Council commenced this reform 12 months ago and it is now coming to fruition. He thanked all staff involved in the review of these policies.

 

Item 9 titled Sale of Land for Overdue Rates and Charges – the Interim Administrator acknowledged that this is a difficult issue and acknowledged that in the confidential papers attached to the officer’s report there was significant background information on the amount of communication and engagement that had occurred with the owners of the properties and that this process really is a last resort.

 

He thanked officers for their diligence in reporting the details of the interactions with owners and the intent to have the rates paid without resorting to the sale of land but that this was now the action Council needed to take.

The motion was put and carried.

 

Officers’ Reports

 

Queensland Audit Office Final Managment Reports 2018-2019

The Interim Administrator of the Ipswich City Council resolves:

A.           That the 2018-2019 final management report for Ipswich City Council as detailed in Attachment 1 of the report by the Principal Financial Accountant dated 5 November 2019 be received and noted.

B.           That the 2018-2019 final management report for Ipswich City Properties Pty Ltd as detailed in Attachment 2 of the report by the Principal Financial Accountant dated 5 November 2019 be received and noted.

C.           That the 2018-2019 final management report for Ipswich City Enterprises Pty Ltd and Ipswich City Enterprises Investments Pty Ltd as detailed in Attachment 3 of the report by the Principal Financial Accountant dated 5 November 2019 be received and noted.

D.           That the 2018-2019 final management report for Ipswich City Developments Pty Ltd as detailed in Attachment 4 of the report by the Principal Financial Accountant dated 5 November 2019 be received and noted.

DISCUSSION

The Interim Administrator noted the Queensland Audit Office reports in relation to the companies owned by Council relating to developments and that the reports which are public really echo the fact that these companies have effectively closed down. He thanked staff for their work, particularly Ipswich City Properties in having the companies at a point where they may not be legally closed yet but were operationally closed by 30 June this year.

The motion was put and carried.

 

Contract for Telecommunication Services

The Interim Administrator of the Ipswich City Council resolves:

A.           That Council (Interim Administrator of Ipswich City Council), in accordance with section 234 of the Local Government Regulation 2012 (exception for LGA arrangement), approve for the provision of Telecommunication Services with Telstra Corporate Limited via Local Buy Contract NPN 1.18. 

B.           That Council (Interim Administrator of Ipswich City Council) enter into a contract for the provision of Telecommunication Services via Local Buy contract NPN 1.18 with Telstra Corporate Limited for a period 3 years.

C.           That the Chief Executive Officer be authorised to negotiate and finalise the terms of the contract and to do any other acts necessary to implement Council’s decision in accordance with section 13(3) of the Local Government Act 2009.

DISCUSSION

The Interim Administrator outlined that it was agreed at the Governance Committee that this report would be brought to Council. He stated that after reading the report and additional documentation that was presented to Council in terms of looking at options and implications, that he is now comfortable with the recommendation.

The motion was put and carried.

 

Report - Audit and Risk Management Committee No. 2019(05) of 6 November 2019

The Interim Administrator of the Ipswich City Council resolves:

A.           That the report of the Audit and Risk Management Committee No. 2019(05) of 6 November 2019, be received and the recommendations contained therein, be adopted.

B.           That the 2020 planned agenda for the Audit and Risk Management Committee be adopted.

C.           That Council endorse the request for quotation process for the engagement of a qualified valuer for five (5) years to perform asset revaluation services as outlined in the report by the Principal Financial Accountant dated 30 October 2019.

D.           That the Audit and Risk Management Committee Charter as detailed in Attachment 2 (Attachment 1.6.2) of the Officer’s Report, be adopted.

E.           That the proposed Internal Audit Charter as detailed in Attachment 2 (Attachment 1.9.2) of the Officer’s Report, be adopted.

DISCUSSION

The Interim Administrator invited comments from the Interim Management Committee:

 

Robert Jones stated that the focus of the Audit and Risk Management Committee is to make sure that it has the appropriate systems, processes and controls in place that underlie the strategic risks of the organisation. He stated that this is the focus going forward and that he thinks council is in good shape for the next year.

 

The Interim Administrator thanked Robert Jones and Stan Gallo for their work with the Audit and Risk Management Committee. He stated that he has spent some time talking to other councils in South East Queensland on a number of matters over the last few months including Audit and Risk Committee roles and charters. He commented that thanks to the advice and assistance of Rob and Stan that he feels Ipswich is heading in the direction to be leading edge in this area given the issues across South East Queensland.

The motion was put and carried.

 


MEETING CLOSED

The meeting closed at 9.14 am.

“These minutes are subject to confirmation at the next scheduled Council Ordinary Meeting”

 

 


Council

Meeting Agenda

10 December

2019

 

Economic Development Committee NO. 2019(12)

 

3 December 2019

 

Report of the Economic Development Committee

 for the Council

MEMBER’S ATTENDANCE:              Greg Chemello (Interim Administrator)

 

INTERIM MANAGEMENT

COMMITTEE ATTENDANCE:            Jan Taylor, Simone Webbe, Robert Jones, Stan Gallo and Steve Greenwood

 

Pursuant to section 8.4.5 of Council’s Meeting Procedures Policy, the Interim Administrator invited the Interim Management Committee being Jan Taylor, Simone Webbe, Robert Jones, Stan Gallo and Steve Greenwood to address the Economic Development Committee on any matters before it.

 

The Interim Administrator advised that he is bound to declare Conflict of Interests and potential Conflict of Interests and that the members of the Interim Management Committee are not legally bound, however in accordance with the Interim Management Committee Charter they will also declare Conflict of Interests and potential Conflict of Interests

1.           Council Brand Relationship Spectrum

This is a report concerning the relationship of council brands.

In July 2019, council adopted an update to its City of Ipswich logo, making it a cleaner and more contemporary design.

That report also highlighted a greater inconsistency in the array of council sub-brands which over time have developed customised or distinctly different identities from the council master brand.

This report recommends a clear direction for the relationship of council brands following a review of local government examples and advertising industry practices.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

A.           That a Branded House framework for all council owned facilities and primarily council operations and services, be adopted.  

B.           That the application of the logo and Brand House be specified as part of a council style guide to be approved by the Chief Executive Officer.

 

 

2.           Ipswich Central Redevelopment Governance

This is a report concerning the governance arrangements for the Ipswich Central Redevelopment Project.

This report recommends that Council adopt a governance structure for the project which includes a Retail Precinct sub-project steering committee with a remunerated independent Chairperson with relevant commercial, retail development and operations experience.

The proposed governance structure is designed to ensure that the Ipswich Central redevelopment is delivered in a transparent, effective and efficient manner to enable the project to achieve the objective of an activated and commercially successful central business district.

 

The Interim Administrator informed the meeting that he has, or could reasonably be taken to have a perceived conflict of interest in Item 2 titled Ipswich Central Redevelopment Governance.

 

The nature of the perceived interest is that Ranbury Management Group is the primary consultant for the CBD Redevelopment and from 2008 to 2012 he was an employee and was a director and part owner of Ranbury but has no current working relationship with the company.

The Interim Administrator confirmed that, as there is no personal or financial benefit to the Interim Administrator, he would participate in the meeting in relation to the matter.

 

Stan Gallo from the Interim Management Committee informed the meeting that for the purpose of transparency he has, or could reasonably be taken to have a perceived conflict of interest in Item 2 titled Ipswich Central Redevelopment Governance.

 

The nature of the perceived interest is that he is a partner at KPMG, who have undertaken a financial analysis of a development and divestment strategy for retail and commercial assets.

 

Stan Gallo confirmed that, as there is no personal or financial benefit to him and he would not be party to any analysis undertaken by KPMG, he would participate in the meeting in relation to the matter.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

A.           That Council adopt the proposed governance structure for the delivery of the Ipswich Central redevelopment project as detailed in this report.

B.           That Council approve the draft Terms of Reference for the Retail Sub-Project Steering Committee, as attached to this report.

The Interim Administrator commented that delivery of retail, commercial and entertainment development by a local government was a classic example of a project that should be delivered through a council owned company as the expertise required for property development was generally outside the scope of most councillors.  However, given the history of Ipswich City Council’s controlled entities, he was not inclined to recommend establishment of such a company.  He said the proposed governance arrangements were the next best option available to enable future elected representatives to make decisions on commercial arrangements negotiated and endorsed through the expert Retail Sub-Project Steering Committee.

 

 

3.           Tender Consideration Plan Approval - Retail Project Audit Consultants

This is a report concerning a proposed Tender Consideration Plan for the engagement of design audit consultants for the retail works within the Nicholas Street - Ipswich Central project (the Retail Project).

 

The Interim Administrator informed the meeting that he has, or could reasonably be taken to have a perceived conflict of interest in Item 3 titled Tender Consideration Plan Approval – Retail Project Audit Consultants.

 

The nature of the perceived interest is that Ranbury Management Group is the primary consultant for the CBD Redevelopment and from 2008 to 2012 he was an employee and was a director and part owner of Ranbury but has no current working relationship with the company.

The Interim Administrator confirmed that, as there is no personal or financial benefit to the Interim Administrator, he would participate in the meeting in relation to the matter.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

A.           That a Tender Consideration Plan be prepared in accordance with section 230(1)(a) of the Local Government Regulation 2012 (Qld) to engage design audit consultants for the Nicholas Street – Ipswich Central project.

B.           That the Tender Consideration Plan as outlined in the report by the General Manager – Coordination and Performance dated 22 November 2019, in accordance with section 230(1)(b) of the Local Government Regulation 2012 for the engagement of design audit consultants for the Nicholas Street – Ipswich Central Retail Project, be adopted.

C.           That the Chief Executive Officer be authorised to negotiate and finalise the terms of the retail project variations to be executed on behalf of 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.

 


The confidential papers associated with Item 4 are confidential as they include budget expenditure figures and contractual information which is commercial in-confidence.

4.           Tender Consideration Plan - Principal Contractor for Commonwealth Hotel Reconstruction Work

This is a report concerning the procurement process for the Principal Contractor for the reconstruction of the Commonwealth Hotel.  This report recommends that competitive tenders be invited from a list of suitably qualified Contractors drawn from the Expression of Interest (EOI) process completed in 2017 for this same purpose. Due to the time elapsed since this initial EOI process, the list be supplemented if required with other suitably qualified Contractors currently available for the work.

Section 230 of the Local Government Regulation 2012 allows a local government to enter into medium and large contractual agreements, without first inviting written quotes or tenders, through the preparation and adoption of a Tender Consideration Plan (TCP).  The TCP provides the information required to comply with the regulation and to justify the use of the plan as an effective and appropriate alternative to seeking quotes or to calling for open tenders.  The scope of services to which the TCP relates is:

·    Principal Contractor for the Commonwealth Hotel Reconstruction Work.

 

The Interim Administrator informed the meeting that he has, or could reasonably be taken to have a perceived conflict of interest in Item 4 titled Tender Consideration Plan – Principal Contractor for Commonwealth Hotel Reconstruction Work.

 

The nature of the perceived interest is that Ranbury Management Group is the primary consultant for the CBD Redevelopment and from 2008 to 2012 he was an employee and was a director and part owner of Ranbury but has no current working relationship with the company.

The Interim Administrator confirmed that, as there is no personal or financial benefit to the Interim Administrator, he would participate in the meeting in relation to the matter.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

A.           That a Tender Consideration Plan be prepared in accordance with section 230 (1)(a) of the Local Government Regulation 2012 (Qld) for the Principal Contractor for Commonwealth Hotel Reconstruction Work, as outlined in the report by the General Manager – Coordination and Performance dated 25 November 2019.

B.           That in accordance with section 230(1)(b) of the Local Government Regulation 2012, the Tender Consideration Plan for the Principal Contractor for Commonwealth Hotel Reconstruction Work, be adopted.

C.           That the Chief Executive Officer be authorised to negotiate and finalise the terms of the contracts 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.

 

 

The confidential papers associated with Item 5 are confidential as they include detailed financial information in relation to contractural and payment arrangements with a number of sub-contractors which is commercial in-confidence.

5.           Ipswich Central Program Report No. 17 to 16 October 2019 and Report No. 18 to 15 November 2019

This is a report concerning a monthly update for the Ipswich Central Program of Works.

 

The Interim Administrator informed the meeting that he has, or could reasonably be taken to have a perceived conflict of interest in Item 5 titled Ipswich Central Program Report No. 17 to 16 October 2019 and Report No. 18 to 15 November 2019.

 

The nature of the perceived interest is that Ranbury Management Group is the primary consultant for the CBD Redevelopment and from 2008 to 2012 he was an employee and was a director and part owner of Ranbury but has no current working relationship with the company.

The Interim Administrator confirmed that, as there is no personal or financial benefit to the Interim Administrator, he would participate in the meeting in relation to the matter.

Recommendation

That the report on the Ipswich Central Program Report No. 17 effective to 16 October 2019 and Report No. 18 effective 15 November 2019 be received and the contents noted.

 

 

The confidential papers associated with Item 6 are confidential as they include budget expenditure figures and contractual information which is commercial in-confidence.

6.           Tender Consideration Plan Approval - Retail Construction - Nicholas Street - Ipswich Central

This is a report concerning a proposed Tender Consideration Plan for the provision of construction work associated with the retail areas within Nicholas Street - Ipswich Central project (i.e. the Retail Project).

 

The Interim Administrator informed the meeting that he has, or could reasonably be taken to have a perceived conflict of interest in Item 6 titled Tender Consideration Plan Approval – Retail Construction – Nicholas Street – Ipswich Central.

 

The nature of the perceived interest is that Ranbury Management Group is the primary consultant for the CBD Redevelopment and from 2008 to 2012 he was an employee and was a director and part owner of Ranbury but has no current working relationship with the company.

The Interim Administrator confirmed that, as there is no personal or financial benefit to the Interim Administrator, he would participate in the meeting in relation to the matter.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

A.           That the Tender Consideration Plan for the procurement of the Nicholas Street Ipswich Central Retail Project construction work to be awarded as a variation to the civic project D&C contract, as outlined in the report by the General Manager, Coordination and Performance dated 12 November 2019, be adopted by Council in accordance with section 230(1)(b) of the Local Government Regulation 2012.

 

B.           That the Chief Executive Officer be authorised to negotiate and finalise the terms of the Retail Project variation to be executed on behalf of 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.

 

The Interim Administrator noted that three quarters of the retail construction work value would be delivered by subcontractors through a competitive tender process, with full council visibility, and that the remaining quarter would be construction management costs under relatively low margin and overhead arrangements compared to conventional industry benchmarks.

 

 PROCEDURAL MOTIONS AND FORMAL MATTERS

The meeting commenced at 8.32am.

The meeting closed at 8.58 am.

 

 

 

 


Council

Meeting Agenda

10 December

2019

 

Growth and Infrastructure Committee NO. 2019(12)

 

3 December 2019

 

Report of the Growth and Infrastructure Committee

 for the Council

MEMBER’S ATTENDANCE:                  Greg Chemello (Interim Administrator)

 

INTERIM MANAGEMENT

COMMITTEE ATTENDANCE:               Jan Taylor, Simone Webbe, Robert Jones, Stan Gallo and Steve Greenwood

Pursuant to section 8.4.5 of Council’s Meeting Procedures Policy, the Interim Administrator invited the Interim Management Committee being Jan Taylor, Simone Webbe, Robert Jones, Stan Gallo and Steve Greenwood to address the Growth and Infrastructure Committee on any matters before it.

The Interim Administrator advised that he is bound to declare Conflict of Interests and potential Conflict of Interests and that the members of the Interim Management Committee are not legally bound, however in accordance with the Interim Management Committee Charter they will also declare Conflict of Interests and potential Conflict of Interests.

1.           Development application recommendation - Lot 73 Rhondda Road, New Chum - 2491/2018/MCU

This is a report concerning an application seeking approval for a Material Change of Use -  Special Industry (Waste recycling and reprocessing – waste transfer station, crushing, milling or grinding), Caretakers Residence and Environmentally Relevant Activities (ERA33, ERA54(1) and ERA62(1)(a)) at Lot 73 Rhondda Road, New Chum. 

The subject application requires review by Committee and determination by full Council in accordance with the Framework for Development Applications and Related Activities Policy as more than 20 properly made submissions objecting to the proposed development were received.

The Independent Decision Review Panel (IDRP) has been established to review development applications that are Sensitive Development Matters (as defined within the Framework for Development Applications and Related Activities Policy).  One example of a Sensitive Development Matter is a development application which receives 50 or more submissions objecting to the proposal during the public notification period.  Whilst this development application received 52 properly made submissions, it is noted that the majority of these were in relation to the
co-generation waste to energy plant which was originally proposed by the applicant.  As a result of concerns raised by Council in an information request and also submissions received during the public notification period, the applicant chose to amend the development application to remove the co-generation waste to energy plant.  As a result of the change, this application is not considered to be a Sensitive Development Matter and therefore the application does not require review by IDRP prior to being referred to Committee for review.

The proposed development has been assessed with regard to the applicable assessment benchmarks.  The proposed development generally complies with the assessment benchmarks or can be conditioned to comply as outlined in the attached Statement of Reasons.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

 

A.           That Council (Interim Administrator of Ipswich City Council) resolve to approve development application no. 2491/2018/MCU subject to conditions in accordance with section 60 of the Planning Act 2016.

B.           That the Chief Executive Officer be authorised to negotiate and impose relevant conditions, make all relevant decisions and provide all relevant notices to finalise the approval process and to do any other acts necessary to implement Council’s decision in accordance with section 13(3) of the Local Government Act 2009.

 

 

2.           Amendment to Framework for Development Applications and Related Activities Policy

This is a report concerning an amendment to the Framework for Development Applications and Related Activities Policy. The amendment relates to the circumstances which a Variation Request must be decided by Council. It is proposed to remove the requirement for all Variation Requests to be decided by Council. It is expected that Variation Requests of a significant scale, scope or sensitivity can be decided by Council if determined necessary by the Chief Executive Officer.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

That the Framework for Development Applications and Related Activities Policy be amended in accordance with Attachment 1.

 

The Interim Administrator commented that, when the Framework was initially adopted by Council some months ago, he acknowledged that it was possible that some minor amendments would be needed after a few months of practical experience working with the  Framework.

 

 

3.           Court Action Status Report

This is a report concerning a status update with respect to current court actions associated with development planning related matters including one other significant matter of dispute that the Planning and Regulatory Services Department is currently involved with.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

              That the report be received and the contents noted.

 

 

4.           Exercise of Delegation

This is a report concerning applications that have been determined by delegated authority for the period 31 October 2019 to 21 November 2019.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

              That the report be received and the contents noted.

 

 

 PROCEDURAL MOTIONS AND FORMAL MATTERS

The meeting commenced at 9.06am.

The meeting closed at 9.13am.

 

 

 

 


Council

Meeting Agenda

10 December

2019

 

Communities Committee NO. 2019(12)

 

3 December 2019

 

Report of the Communities Committee

 for the Council

MEMBER’S ATTENDANCE:                  Greg Chemello (Interim Administrator)

 

INTERIM MANAGEMENT

COMMITTEE ATTENDANCE:               Jan Taylor, Simone Webbe, Robert Jones, Stan Gallo and Steve Greenwood

Pursuant to section 8.4.5 of Council’s Meeting Procedures Policy, the Interim Administrator invited the Interim Management Committee being Jan Taylor, Simone Webbe, Robert Jones, Stan Gallo and Steve Greenwood to address the Communities Committee on any matters before it.

 

The Interim Administrator advised that he is bound to declare Conflict of Interests and potential Conflict of Interests and that the members of the Interim Management Committee are not legally bound, however in accordance with the Interim Management Committee Charter they will also declare Conflict of Interests and potential Conflict of Interests.

The confidential papers associated with Item 1 are confidential as they include commercial in-confidence information.

1.           City Heart Cabs Program

This is a report concerning the City Heart Cabs Program (the Program). The Program was established by council in 2010  in response to a council 2010-2011 budget speech announcement to trial a subsidised transport service in Ipswich for eligible community members in receipt of an Australian Government Pension. The Program was developed to support a sector of the community that may experience social isolation or limited access to transport.

In 2018, a committee report was presented to council recommending a significant review of the Program to explore its purpose, benchmark it against other Local Government Areas, consider equity of access and to increase efficiency.

The purpose of this report is to detail the review of the Program that has been undertaken, outline the current concerns and provide recommendations for the long-term sustainability of the Program.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

A.           That the previous decision of Council, as per Item No. 1 of the Policy and Administration Board No. 2010(09) of 23 November 2010 – City Management and Finance Committee No. 2010(12) of 30 November 2010 and adopted at the Council Ordinary meeting of 7 December 2010, be repealed (Attachment 1).

B.           That the previous decision of Council, as per Item No. 9 of the Economic Development and Sustainability Committee No. 2011(05) of 10 May 2011 and adopted at the Council Ordinary meeting of 17 May 2011, be repealed
(Attachment 2).

C.           That the previous decision of Council, as per Item No. 3 of the Youth and Seniors Committee No. 2013(08) of 12 August 2013 and adopted at the Council Ordinary Meeting of 19 August 2013, be repealed (Attachment 3).

D.           That the previous decision of Council, as per Item No. 2 of the Youth and Seniors Committee No. 2014(06) of 19 June 2014 and adopted at the Council Ordinary Meeting of 26 June 2014, be repealed (Attachment 4).

E.           That the previous decision of Council, as per Item No. 3 of the Youth and Seniors Committee No. 2015(12) of 23 November 2015 and adopted at the Council Ordinary Meeting of 1 December 2015, be repealed (Attachment 5).

F.            That a clear operating model based on community needs and council objectives with specifications for the potential tender of services for the Program be developed and presented to a future meeting of the Communities Committee.

G.           That following the repeal of previous council decisions, the Program be endorsed to continue under current arrangements as an interim measure pending the replacement of those arrangements following an open and transparent tender process.

H.           That a further report outlining legal advice on the risks associated with operating outside of a contract be submitted to the Council Ordinary meeting scheduled for 28 January 2019.

 

PROCEDURAL MOTIONS AND FORMAL MATTERS

The meeting commenced at 9.14 am.

The meeting closed at 9.19 am.

 

 

 

 


Council

Meeting Agenda

10 December

2019

 

Environment Committee NO. 2019(12)

 

3 December 2019

 

Report of the Environment Committee

 for the Council

MEMBER’S ATTENDANCE:                  Greg Chemello (Interim Administrator)

 

INTERIM MANAGEMENT

COMMITTEE ATTENDANCE:               Jan Taylor, Simone Webbe, Robert Jones, Stan Gallo and Steve Greenwood

 

Pursuant to section 8.4.5 of Council’s Meeting Procedures Policy, the Interim Administrator invited the Interim Management Committee being Jan Taylor, Simone Webbe, Robert Jones, Stan Gallo and Steve Greenwood to address the Environment Committee on any matters before it.

 

The Interim Administrator advised that he is bound to declare Conflict of Interests and potential Conflict of Interests and that the members of the Interim Management Committee are not legally bound, however in accordance with the Interim Management Committee Charter they will also declare Conflict of Interests and potential Conflict of Interests.

1.           Natural Area Network Fire Management Program Update

This is a report concerning an update on the current Natural Area Network Fire Management Program.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

That the report be received and the contents noted.

The Interim Administrator queried whether residents should just be advised on the outcome of the Management Program or whether there should be a community engagement process undertaken.

Jan Taylor from the Interim Management Committee stated that it would be nice to undertake a proper community consultation process however given the timeframes she was not sure that this would be possible.

The Planning Officer (Natural Environment) stated that several other bodies hold a lot of community workshops however the consultation that Council generally undertakes is with those residents that live directly adjacent to these specific areas.

The Interim Administrator requested officers to consider reviewing the Natural Area Network Fire Management Program as part of the budget process for February 2020.

Jan Taylor suggested that it may be useful to have a timeline every year in March/April where council could seek community comment with a view to completing a final review in July/August.

 

PROCEDURAL MOTIONS AND FORMAL MATTERS

The meeting commenced at 9.20 am.

The meeting closed at 9.31 am.

 

 

 

 


Council

Meeting Agenda

10 December

2019

 

Governance Committee NO. 2019(12)

 

3 December 2019

 

Report of the Governance Committee

 for the Council

MEMBER’S ATTENDANCE:                  Greg Chemello (Interim Administrator)

 

INTERIM MANAGEMENT

COMMITTEE ATTENDANCE:               Jan Taylor, Simone Webbe, Robert Jones, Stan Gallo and Steve Greenwood

 

Pursuant to section 8.4.5 of Council’s Meeting Procedures Policy, the Interim Administrator invited the Interim Management Committee being Jan Taylor, Simone Webbe, Robert Jones, Stan Gallo and Steve Greenwood to address the Governance Committee on any matters before it.

 

The Interim Administrator advised that he is bound to declare Conflict of Interests and potential Conflict of Interests and that the members of the Interim Management Committee are not legally bound, however in accordance with the Interim Management Committee Charter they will also declare Conflict of Interests and potential Conflict of Interests.

1.           Operational Plan 2019-2020 Quarter One (Q1) Performance

This is a report concerning an assessment of Ipswich City Council’s progress towards implementing the 2019-2020 Operational Plan. Presented is the quarter one data provided by Departmental representatives.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

              That the report be received and the contents noted.

 

 

2.           Amendments to the 2019-2020 Operational Plan

Council has a legislative obligation to prepare an annual report and publically report on it quarterly. As a result of undertaking the quarter 1 report (Jul to Sep) a number of items were identified as being core business, were duplicates or won’t be completed in the year. The 2019-2020 Operational Plan has been amended to remove these items so that clear and accurate reporting for the operational plan can occur for the remainder of the financial year (quarters 2, 3 and 4). This report is seeking the adoption of the amended 2019-2020 Operational Plan.

 

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

              That the amended 2019-2020 Operational Plan be adopted.

 

 

3.           Review of Policies - Infrastructure and Environment Department

This is a report concerning governance documents relating to the Infrastructure and Environment Department (IED) that were outlined in the report by the Policy Officer at the Council Ordinary meeting of 16 July 2019.  In order to meet the new requirements of Council’s Policy and Procedure Framework, changes are required to governance documents and are now to be presented for repeal.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

A.           That the policy titled “Master Planning of Open Space”, be repealed.

B.           That the policy titled “Community Facility Name Signs”, be repealed.

C.           That the policy titled “Application of No Stopping Devices”, be repealed.

 

 

4.           Review of Policies - Community, Cultural and Economic Development

This is a report concerning a review of policies in relation to the functions of the Community, Cultural and Economic Development Department undertaken in accordance with council’s Policy and Procedure Management Framework adopted by Council on 16 July 2019.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

A.           That the policies detailed in Table 1, be repealed.

B.           That the amended policies detailed in Table 2, be adopted.

C.           That the new policy detailed in Table, 3 be adopted.

 

 

TABLE 1 – Policies to be repealed

Name of Policy

Adopted at Council

Attachment Number

Ipswich Outdoor/Nature-Based Recreation Policy

28 June 2016

1

Skate and BMX Facilities Policy

29 November 2016

2

Sport, Recreation and Physical Activity Policy

21 May 2013

3

Multi-Use Sport and Recreation Facilities Policy

23 April 2013

4

Requests to Purchase a City of Ipswich Logo Flag Policy

21 February 2012

5

Sponsorship of Promotional Street Banners Policy

8 November 2012

6

Installation of Claude Identilite Signage Policy

14 November 2017

7

TABLE 2 – Amended Policies

Name of Policy

Adopted at Council

Attachment Number

Community Donations Policy - Current

29 January 2019

8

Community Donations Policy - Proposed

 

9

Bursaries, Scholarship and Other Funding for Community Purposes Policy - Current

26 June 2018

10

Bursaries, Scholarship and Other Funding for Community Purposes Policy - Proposed

 

11

Community Engagement Policy - Current

1 December 2015

12

Community Engagement Policy - Proposed

 

13

TABLE 3 – New Policies

Name of Policy

Attachment Number

Active City Policy

14

 

The Interim Administrator stated that Council needs to be cognisant of the fact of how the repealing of these policies may look to the community and that it will be important to inform the community of the process and framework; that operational matters are managed as Procedures and Directives approved by the Chief Executive Officer, not policies by elected councillors.

 

 

5.           Review of Policies - Legal and Governance Branch, Corporate Services

This is a report concerning the review of policies relating to the functions of the Legal and Governance Branch, Corporate Services, undertaken in accordance with Council’s Policy and Procedure Management Framework adopted by Council on
16 July 2019.

 

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

A.           That the policies detailed in Table 1, be repealed.

B.           That the policy detailed in Table 2, be adopted.

TABLE 1 – Policies to be repealed

Policy

Rationale for Decision

Attachment

General Donations to the Ipswich City Council Staff Social Club

This policy was initially adopted in 2004 to provide support to the workforce to foster strong working relationships through opportunities for social interaction.  Over the years Council has taken a broader approach to employee well-being and has put in place programs that provide greater health and networking opportunities. Therefore, it is considered that this policy can now be repealed as it no longer relevant.  

1

Key to the City Policy

These policies have been merged into a new policy entitled Keys to the City and Freedom of Entry Policy.  These honours are both symbolic in nature and can be dealt with under the same policy. 

2

Freedom of Entry Policy

3

Hardship Property Acquisition Policy

This policy has been replaced by the Early Property Acquisition Policy which was adopted by Council on 29 October 2019.

4

TABLE 2 – New policy

Policy

Rationale

Attachment

Keys to the City and Freedom of Entry Policy

This policy details Council’s commitment to conferring appropriate honours to individuals who meet the policy criteria as well as a symbolic honour for a military unit.  This policy will replace the two (2) separate policies as detailed in table 1.

5

 

6.           Fraud and Corruption Control Policy

This is a report concerning the adoption of the Fraud and Corruption Control Policy a deliverable of Transformation Project 7 – Risk Management.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

That the policy titled "Fraud and Corruption Control Policy" as detailed in Attachment 1 to the report by the Governance Manager dated 21 November 2019, be adopted.

Simone Webbe from the Interim Management Committee commented that it will be important moving forward that staff and councillors understand there is not just a policy in place but that there is a zero tolerance of fraud and corruption and that training and capability building across council will form part of a transformation beyond what a policy document can do.

 

 

7.           Media Policy

This is a report concerning a Media Policy which outlines the expectations of elected representatives and staff of the organisation when dealing with the media, and when managing and preparing content for owned channels.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

A.           That the policy titled “Media Policy, as outlined in Attachment 1, be adopted.

B.           That the procedure titled “Media and Communications Procedure” as outlined in Attachment 2, be noted.

C.           That the Media Policy be submitted to committee within three months (prior to the end of June 2020) of the newly elected council for review.

The Interim Administrator suggested that this policy be workshopped with the incoming councillors to ensure it meets the needs of elected representatives.

Simone Webbe from the Interim Management Committee raised a concern with this suggestion stating that maybe the review could be confined to council and media outlets as a policy determination.

The Interim Administrator initially suggested that a review be undertaken with the new councillors within six months however subsequently agreed with Jan Taylor that the review should be within three months of the newly elected council.

 

 

8.           Local Law Making Process Policy

This is a report concerning the presentation of Council’s Local Law Making Process Policy in the new policy template for adoption. There is no change to the policy or its intent – only readjustment to fit the new template.  It identifies the new policy owner and author, Corporate Services, as a result of the recent organisational restructure.   It has also been identified that a superseded policy relating to making and reviewing local laws needs to be repealed. This report is part of the deliverable for Business Transformation Project 9 (Policies, Procedures and Local Laws).

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

A.           That the policy titled “Local Law Making Process Policy” as detailed in Attachment 1, be repealed.

B.           That the policy titled “Making and Reviewing Local Laws and Subordinate Local Laws” as detailed in Attachment 2, be repealed. 

C.           That the policy titled “Local Law Making Process Policy as detailed in Attachment 3, be adopted.

 

 

9.           Quote Consideration Plan for .ID Profile

This is a report concerning a Quote or Tender Consideration plan to support the renewal of Ipswich City Council’s subscription to online demographic and economic analytics tool, .id Profile.  This report has jointly been prepared by the Corporate Planning section (product owner/user) and the ICT Business Support section (where budget resides).

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

A.           That Council (Interim Administrator of Ipswich City Council) resolve to prepare a Quote or Tender Consideration Plan for .id Profile in accordance with section 230(1) (a) of the Local Government Regulation 2012.

B.           That Council (Interim Administrator of Ipswich City Council) resolve to adopt the Quote or Tender Consideration Plan for .id Profile as outlined in the report by the Senior Social Policy Analyst dated 8 November 2019, in accordance with section 230(1)(b) of the Local Government Regulation 2012.

C.           That Council (Interim Administrator of Ipswich City Council) resolve to enter into a contract with I.D. Consulting Pty Ltd for a Demographic Information System on the terms described in the report by the Senior Social Policy Analyst dated 8 November 2019 for a period of 4 years, to bring the contract terms in line with Local Government Elections.

D.           That the Chief Executive Officer be authorised to negotiate and finalise the terms of the contract with I.D. Consulting Pty Ltd 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.

 

10.         Changes to Fees and Charges arising from Local Laws review

This is a report concerning proposed changes to Council’s Register of Fees and Charges arising from the recent Local Laws review.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

 

That the 2019-2020 Register of Fees and Charges be amended, as detailed in Attachment 1, and adopted with effect from 10 December 2019.

 

 

11.         Monthly Performance Report - October 2019

This is a report concerning Council performance for the period ending 31 October 2019, submitted in accordance with section 204 of the Local Government Regulation 2012.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

That the report be received and the contents noted.

Steve Greenwood from the Interim Management Committee suggested that it may be useful to invite Queensland Treasury Corporation to provide quarterly updates to council.

 

 

12.         Quote Consideration Plan - Cohga (Weave) Spatial Software Agreement

This is a report concerning a Quote Consideration Plan to identify providers that have been classified as a sole or unique provider to Council.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

A.           That Council (Interim Administrator of Ipswich City Council) resolve to prepare a Quote Consideration Plan for Cohga (Weave) spatial software suite in accordance with section 230(1)(a) of the Local Government Regulation 2012.

B.           That Council (Interim Administrator of Ipswich City Council) resolve to adopt the Quote Consideration Plan for Cohga (weave) spatial software suite as outlined in the report by the Interim ICT Manager dated 22 November 2019 in accordance with section 230(1)(b) of the Local Government Regulation 2012.

C.           That Council (Interim Administrator of Ipswich City Council) resolve to enter into a contract with Cohga P/L for the provision of the Weave application on the terms described in the report by the Interim ICT Manager dated 22 November 2019.

D.           That the Chief Executive Officer be authorised to negotiate and finalise the terms of the contract with Cohga P/L 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.

 

13.         Review of Policies - Infrastructure and Environment Department

This is a report concerning a review of policies relating to Council’s management of Council Fleet Assets. This review was undertaken in accordance with Council’s Policy and Procedure Framework adopted by Council on 16 July 2019.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

That the policies detailed in Table 1, be repealed.

TABLE 1 – Policies to be repealed

Name of Policy

Adopted at Council

Attachment Number

Ipswich City Council Light Vehicle Policy

19 July 2006

1

Private Use of Councils Motor Vehicles Policy

28 July 2015

2

Motor Vehicle Fleet – Replacement of Vehicles Policy

19 May 1999

3

 

14.         Updated Terms of Reference for Council's Standing Committees

This is a report concerning an updated Terms of Reference (TOR) for Council’s Standing Committees. The Terms of Reference was first submitted to Council in October 2018 and then again in November 2018. Since that time consultation has been undertaken with the Executive Leadership Team and the Interim Management Committee. As a result of the consultation a suggested updated TOR (to replace the five current Terms of Reference for each of the committees) has been prepared for consideration.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

That an amended Terms of Reference for Council’s standing committees, as detailed in Attachment 2, be adopted, replacing the five current Terms of Reference for each of the standing committees.

 

 

 

15.         Review of Policies - Corporate Services Department

This is a report concerning the review of policies relating to the functions of the Legal and Governance and Finance Branches of the Corporate Services Department, undertaken in accordance with Council’s Policy and Procedure Management Framework adopted by Council on 16 July 2019.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

A.           That the amended policies detailed in Table 1 be adopted.

B.           That the policies detailed in Table 2, be adopted.

C.           That the policies detailed in Table 3, be repealed.

TABLE 1 – Amended policies

Policy

Rationale for Decision

Attachment

Record Keeping Policy

The current Record Keeping Policy was adopted at Council on 4 December 2018.  A review of the document has been undertaken with the current policy being transferred to the new template.  The only additional information required to be completed was Clause 8 - Monitoring and Evaluation which is required to place the policy in line with the new template requirements.

Current – 1

Amended - 2

Public Interest Disclosure Policy

The current Public Interest Disclosure Policy was adopted at Council on 21 May 2019.  A review of the document has been undertaken while being transferred to the new policy template.  The only additional information required to be completed was Clause 8 – Monitoring and Evaluation which is required to place the policy in line with the new template requirements.

Current – 3

Amended - 4

Confidentiality Policy

The current Confidentiality Policy was adopted at Council on in 2016.  The policy has been reviewed and placed on the new template.   The only additional information required to be completed was Clause 8 – Monitoring and Evaluation which is required to place the policy in line with the new template requirements.

Current – 5

Amended - 6

Rates Concession Policy

The attached updates for the existing Rates Concession Policy and Pensioner Remission of Rates Policy are intended to:

1)      bring these policies into line with Council new policy format; and

2)      includes some minor edits to:

a)  reflect the requirements for the new policy format;

b) update legislative and organisational references; and

c) specifically remove references related to prior consultation with Councillors (Rates Concession Policy only).

Current 7

Amended 8

Pensioner Remission of Rates Policy

Current 9

Amended 10

 

TABLE 2 – New policies

Policy

Rationale for Decision

Attachment

Information Systems Security (InfoSec) Policy

With this policy, Council seeks to establish and maintain an Information Security Management System (ISMS) that provides for appropriate security and confidentiality of information, information systems, applications and networks owned, leased or operated by all Council users, operations and entities as required to address corporate risks and to satisfy regulatory requirements.

This policy was presented to the ICT Steering Committee on 25 November 2019 and received its endorsement.

11


Reward for Information Offered by Council Policy

The Reward for Information on Illegal Dumping, Vandalism and Theft Policy has been re-written and re-titled.  The current policy allows for residents to provide information to Council on an ad hoc basis and then apply for consideration of payment of a reward.  The new policy removes this option.  The decision to offer a reward for information will be made by Council following the submission of a committee report by the relevant Department recommending the offer of a reward via public notice.  The policy highlights that the offer of a reward is at Council’s discretion.

It is considered that this approach will formalise the process and will provide transparency and accountability around the use of public monies for the provision of rewards. 

12

 

TABLE 3 – Policy to be repealed

Policy

Rationale for Decision

Attachment

Reward for Information on Illegal Dumping, Vandalism and Theft Policy

This policy is to be replaced with the Reward for Information Offered by Council Policy.

13

 

 

16.         Review of Policies - People and Culture Branch, Corporate Services

This is a report concerning the review of policies relating to the functions of the People and Culture Branch, Corporate Services, undertaken in accordance with Council’s Policy and Procedure Management Framework adopted by Council on
16 July 2019.

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

A.           That the policies detailed in Table 1, be repealed.

B.           That the policies detailed in Table 2, be adopted.

TABLE 1 – Policies to be repealed

Policy

Rationale for Decision

Attachment

Reimbursement of Interview Expenses Policy

To be repealed and will be replaced by the Administrative Directive ‘Reimbursement of Interview Expenses’. The replacement to an Administrative Directive was endorsed by ELT on 14 November 2019.

1

Removal Expenses Policy

To be repealed and will be replaced by the Administrative Directive ‘Removal Expenses’. The replacement to an Administrative Directive was endorsed by ELT on 14 November 2019.

2

Council Name Badge Policy

To be repealed and will be replaced by the Administrative Directive ‘Council Name Badge’. The replacement to an Administrative Directive was endorsed by ELT on 14 November 2019.

3

Christmas Leave Policy

To be repealed and will be replaced by the Administrative Directive ‘Christmas Closure’. The renaming and replacement to an Administrative Directive was endorsed by ELT on 14 November 2019.

 

4

Smoke Free Workplace Policy

To be repealed and will be replaced by the Administrative Directive ‘Smoke Free Workplace’. The replacement to an Administrative Directive was endorsed by ELT on 14 November 2019.

5

Council Corporate Uniform (Non-Compulsory) Office Based Staff Policy

This policy is proposed to be repealed and replaced by a re-written Administrative Directive. The replacement to an Administrative Directive was endorsed by ELT on 21 November 2019.

6

Determination of Department Structures, Descriptions and Position

Outlines Policy

 

This policy is proposed to be repealed and replaced by a re-written Administrative Directive. The replacement to an Administrative Directive was endorsed by ELT on 21 November 2019.

7

Re-Employment of Employees Who Have Received a Termination Payment Under the Terms of the Redundancy Provisions of Council's Enterprise Bargaining Agreement Policy

This policy is proposed to be repealed and replaced by a re-written and renamed Administrative Directive. The existing title of this policy is too large and the current name has been referenced in the statement of the re-developed administrative directive. The renaming and replacement to an Administrative Directive was endorsed by ELT on 21 November 2019.

8

Working with Children Policy

It is proposed to repeal this existing policy as it is outdated and does not satisfy current legislation. It will be replaced by a policy in new format and will keep the same name. The replacement to an updated policy was endorsed by ELT on 21 November 2019.

9

TABLE 2 – New policies

Policy

Rationale for Decision

Attachment

Working with Children Policy

It is proposed to repeal this existing policy as it is outdated and does not satisfy current legislation. It will be replaced by a policy in new format and will keep the same name. Refer to attachment 9 in regards to ELT endorsement provided.

10

The Interim Administrator thanked all staff involved in the review of policies in such a short timeframe.

 

 

 PROCEDURAL MOTIONS AND FORMAL MATTERS

The meeting commenced at 9.47 am.

The meeting closed at 10.18 am.

 

 

 

       


Council

Meeting Agenda

10 December

2019

 

Doc ID No: A5925283

 

ITEM:            N.1

SUBJECT:      Adoption of Meeting Conduct Policy and Public Participation at Council Ordinary Meetings Policy

AUTHOR:      Committee Manager

DATE:            27 November 2019

 

 

Executive Summary

This is a report concerning the adoption of a proposed Meeting Conduct Policy which is a requirement under the Local Government Act 2009, the adoption of a proposed Public Participation at Council Ordinary Meetings Policy and a minor amendment to the Meetings Procedures Policy.

These policies will finalise the Councillor Integrity Policy Package which consist of the Meetings Procedures Policy and the Investigations Policy which were adopted by Council in September 2019.

Recommendation/s

That the Interim Administrator of Ipswich City Council resolve:

A.           That the policy titled “Meeting Conduct Policy” as detailed in Attachment 1, be adopted.

B.           That the policy titled “Public Participation at Council Ordinary Meetings” as detailed in Attachment 2, be adopted.

C.           That the Meetings Procedure Policy, under section 8.4.3 Order of Business, be amended by the incorporation of the following business item:

·    Public Participation

and the amendment of the Business Outstanding business item to also include the words “including conduct matters”.

RELATED PARTIES

There are no related parties to this report.

Advance Ipswich Theme

Listening, leading and financial management

Purpose of Report/Background

Section 150G of the Local Government Act 2009 states that a Local Government must either adopt the model procedures published by the department’s chief executive or prepare and adopt another procedure for the conduct of its meetings and meetings of its committees.

This policy has been prepared in accordance with the model procedures for how the chairperson of a local government meeting may deal with a councillor’s unsuitable meeting conduct and how the suspected inappropriate conduct of a councillor, referred to the local government by the assessor, must be dealt with at a local government meeting. General conduct during meetings together with Conflicts of Interest and Material Personal Interests are also covered under this policy.

It has also been identified that public participation at Council’s Ordinary Meetings would also be beneficial for residents and ratepayers of the City of Ipswich to provide an avenue to present views and issues of a strategic nature, directly to Councillors, in a public forum.

In order to incorporate the public participation and meeting conduct into Council’s order of business the Meetings Procedures Policy will need to be amended to reflect these processes.

The proposed amendment to the Meetings Procedure Policy incorporating Public Participation and Meeting Conduct is highlighted below:

8.4.3      Unless otherwise altered, the order of business for an ordinary meeting shall be as follows:

·   Opening of meeting

·   Welcome to country or acknowledgement of country

·   Opening Prayer

·   Attendances including apologies and leave of absence

·   Condolences

·   Tributes

·   Presentation of petitions

·   Presentations and deputations

·   Public Participation

·   Confirmation of Minutes

·   Mayoral Minute

·   Declaration of Interests in matters on the agenda

·   Business Outstanding – including conduct matters and matters lying on the table to be dealt with

·   Reception and consideration of committee reports

·   Officers Reports

·   Notices of Motion

·   Questions on notice

Legal/Policy Basis

This report and its recommendations are consistent with the following legislative provisions:

Local Government Act 2009

RISK MANAGEMENT IMPLICATIONS

Under section 150G of the Local Government Act 2009, Council is required to adopt a policy that details the procedures for the conduct of its meetings and meetings of its committees.  By not adopting the Meeting Conduct Policy Council is at risk of being in contravention of its legislative obligations.

Financial/RESOURCE IMPLICATIONS

There are no financial/resource implications associated with this report.

COMMUNITY and OTHER CONSULTATION

The Manager, Executive Services, the Chief Executive Officer and the Interim Administrator have been consulted during preparation of these policies.

Conclusion

The Meeting Conduct Policy has been prepared in accordance with section 150G of the Local Government Act 2009 which states that a local government must either adopt the model procedures or prepare and adopt other procedures for the conduct of its meetings and meetings of its committees.

The Public Participation at Council Ordinary Meetings Policy provides an avenue for community members to interact with Council at its meetings.

Attachments and Confidential Background Papers

 

1.

Meeting Conduct Policy

2.

Public Participation at Council Ordinary Meetings Policy

3.

Public Participation at Council Ordinary Meetings Application Form

 

Vicki Lukritz

Committee Manager

I concur with the recommendations contained in this report.

Wade Wilson

Manager Executive Services

I concur with the recommendations contained in this report.

Angela Harms

Corporate Governance 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”


Council

Meeting Agenda

10 December

2019

Item N.1 / Attachment 1.

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Council

Meeting Agenda

10 December

2019

Item N.1 / Attachment 2.

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Council

Meeting Agenda

10 December

2019

Item N.1 / Attachment 3.

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Council

Meeting Agenda

10 December

2019

 

Doc ID No: A5921944

 

ITEM:            N.2

SUBJECT:      Acquisition of Land for Road Purposes Redbank Plains Road Stage 3

AUTHOR:      Senior Property Officer

DATE:            25 November 2019

 

 

Executive Summary

This is a report concerning the acquisition of land for road purposes for the Redbank Plains Road Stage 3 Project. (The Project).

RECOMMENDATION

That the Interim Administrator of Ipswich City Council resolve:

A.           That Council (Interim Administrator of Ipswich City Council) having duly considered this report dated 25 November 2019, be of the opinion that the following properties (shown in Attachment 1-3) (“the land”) be required for acquisition for road purposes:

Part of Lot 35 RP135047, 2 Shannon Street Redbank Plains;

Part of Lot 8 RP856263, 204-206 Redbank Plains Road Bellbird Park; and

Part of Lot 1 RP119577, 208-210 Redbank Plains Road Bellbird Park.

B.           That Council (Interim Administrator of Ipswich City Council) exercise its power as a “Constructing Authority” under the Acquisition of Land Act 1967 and acquire the land, (as described in Recommendation A of this report dated 25 November 2019) for road purposes.

C.           That the Chief Executive Officer be authorised to negotiate compensation and perform any other matters, arising out of the Acquisition Land Act 1967 or otherwise, and to do any other acts necessary to implement Council’s decision to acquire this land in accordance with section 13 (3) of the Local Government Act 2019.

 

RELATED PARTIES

There are no related parties arising as a direct result of this report.

Advance Ipswich Theme

Managing growth and delivering key infrastructure

Purpose of Report/Background

The City of Ipswich Transport Plan (iGO), identifies the need to upgrade Redbank Plains Road between Keidges Road and Kruger Parade to four lanes to meet population growth in the area and the associated travel demands. The road is also identified as a principal cycle route within Council’s iGO Active Transport Action Plan and the Department of Transport and Main Roads SEQ Principal Cycle Network Plan 2016.

Council’s 10 Year Transport Infrastructure Investment Plan has this section of Redbank Plains Road (referred to as Stage 3 of an upgrading strategy) listed for construction to occur in 2018-2019 and 2019-2020.

The project involves the upgrade of Redbank Plains Road between Keidges Road and Kruger Parade (a length of approximately 1.5km), and the extension of Jansen Street through to Johnston Street (a length of approximately 100m). 

The road will be upgraded to a 4 lane divided carriageway, with 2.0m wide on road cycle lanes (from face of kerb), a 3.0m wide shared use pathway within the western verge, and 1.5m wide pathway within the eastern verge.

Due to the changes in levels between the existing roundabout (Redbank Plains Road and Kruger Parade), the road and footpath levels will typically be lowered in the vicinity of the properties to be acquired.

The required land from part of 2 Shannon Street Redbank Plains is required to relocate an existing bus stop to allow for the shared pathway. 

The required land from part of 204-206 and part of 208-210 Redbank Plains Road Bellbird Park is required to provide safe sight distances to the intersection at Redbank Plains Road and Kruger Parade.

Legal/Policy Basis

 

This report and its recommendations are consistent with the following legislative provisions:

Local Government Act 2009 + Acquisition of Land Act 1967

RISK MANAGEMENT IMPLICATIONS

The risk of not resolving to acquire the land will create a safety risk in that the sight distance requirements under the road design standards would not be met. Also due to the proposed new road alignment, the footpath would have to be constructed almost on the current property boundary.

The project is also subject to external grant funding including Roads to Recovery fund. If the property acquisitions didn’t proceed, the project cannot commence and our obligations under the terms of the funding would not be met.

Financial/RESOURCE IMPLICATIONS

Expenses relating to the resumption of land by agreement will form part of the project budget from the Capital Project Funding for 2019-2020, 2020-2021 and 2021-2022 budget.

External funding for the project has also been granted from the Roads to Recovery fund as well as the Transport Infrastructure Development Scheme (TIDS).   It is noted that this funding is only for the project works and not associated with the acquisition of land.

If an agreement cannot be reached with the property owner and the property is resumed by Gazettal Notice, expenses relating to Land Court proceedings will also form part of the project budget.

COMMUNITY and OTHER CONSULTATION

Internally a number of areas have been involved as part of the design reviews including:

·    Transport Planning, Traffic, Technical Services, Construction, Electrical, Asset Management and Arborists.

A series of community consultation sessions have been held in the Town Square Redbank Plains Shopping Centre between 12 and 17 July 2018 with the purpose of raising awareness of the project and to seek community feedback on the concept design before the progression to details design phase.

Now that the project has reached finalised design the affected property owners have been consulted with on the proposed acquisition of land for road purposes.  Meetings were held with the owners to discuss the proposed road upgrade project in September 2019.

Consultation with the property owners has thus far been very positive and they have been receptive to Council’s project and its requirement for the acquisition of part of their land.  Compensation is to be determined by a market valuation and negotiations with the property owner will occur in due course.

Conclusion

It is recommended that Council proceed with the compulsory acquisition of land over the following properties as a “Constructing Authority” under the Acquisition of Land Act 1967:

·    Part of Lot 35 RP135047, 2 Shannon Street Redbank Plains;

·    Part of Lot 8 RP856263, 204-206 Redbank Plains Road Bellbird Park; and

·    Part of Lot 1 RP119577, 208-210 Redbank Plains Road Bellbird Park.

 

In the first instance, Council will make all reasonable attempts to negotiate by agreement with the property owners when issuing the notice of intention to resume (NIR).  Therefore, Council will seek to compulsory acquire by way of resumption agreement with the property owners, however if this is unsuccessful, Council will exercise its power under the Acquisition of Land Act 1967 and make application to the relevant Minister for the land to be taken.

 

Attachments and Confidential Background Papers

 

1.

Acquisition Plan Part of 2 Shannon Street Redbank Plains

2.

Acquisition Plan Part of 204-206 Redbank Plains Road Bellbird Park

3.

Acquisition Plan Part of 208-210 Redbank Plains Road Bellbird Park

 

Alicia Rieck

Senior Property Officer

I concur with the recommendations contained in this report.

Brett McGrath

Principal Property 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”


Council

Meeting Agenda

10 December

2019

Item N.2 / Attachment 1.

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Council

Meeting Agenda

10 December

2019

Item N.2 / Attachment 2.

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Council

Meeting Agenda

10 December

2019

Item N.2 / Attachment 3.

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Council

Meeting Agenda

10 December

2019

 

Doc ID No: A5924548

 

ITEM:            N.3

SUBJECT:      Acquisition of Land for Road Purposes part of 14 William Street Blackstone

AUTHOR:      Senior Property Officer

DATE:            26 November 2019

 

 

Executive Summary

This is a report concerning the acquisition of land for road purposes for the new kerb and channel to William Street and sections of Charlotte Street Blackstone.

RECOMMENDATION

That the Interim Administrator of Ipswich City Council resolve:

A.           That Council (Interim Administrator of Ipswich City Council) having duly considered this report dated 26 November 2019, be of the opinion that the following property (shown in Attachment 1) (“the land”) be required for acquisition for road purposes:

Part of Lot 25 RP110739, 14 William Street Blackstone;

B.           That Council (Interim Administrator of Ipswich City Council) acquire the land by agreement, (as described in Recommendation A of this report dated 26 November 2019) for road purposes.

C.           That the Chief Executive Officer be authorised to negotiate compensation and perform any other matters, arising out of the Acquisition Land Act 1967 or otherwise, and to do any other acts necessary to implement Council’s decision to acquire this land in accordance with section 13 (3) of the Local Government Act 2019.

 

RELATED PARTIES

There are no related parties arising as a direct result of this report.

Advance Ipswich Theme

Managing growth and delivering key infrastructure

Purpose of Report/Background

The William Street KC Project is part of the Accelerated Kerb and Channel subprogram which was created to install kerb and channel in streets where none existed.

During the design phase the following was established:

·    The cadastral boundary for the property was closer to the road pavement than the existing property fencing;

·    The proposed kerb alignment is around 1m off the cadastral boundary;

·    The existing property fencing is at minimum 2.7m from the proposed back of kerb alignment; and

·    Safe passage of pedestrians is provided by ensuring the verge width by road dedication to the fence line.

The requirement for property acquisition was identified at the initial concept review.

Legal/Policy Basis

 

This report and its recommendations are consistent with the following legislative provisions:

Local Government Act 2009 + Acquisition of Land Act 1967

RISK MANAGEMENT IMPLICATIONS

The risk of not resolving to acquire the land will create a risk to Council not completing the planned kerb and channel project.

This project ties in with other planned intersection upgrade works at Mary Street and William Street intersection nearby.

Financial/RESOURCE IMPLICATIONS

Expenses relating to the acquisition will form part of the project budget from the Accelerated Kerb and Channel subprogram.

COMMUNITY and OTHER CONSULTATION

Internal consultation was sought during the concept of this project.

This project did not involve any community consultation as it is affecting one property owned by the State Government.  The affected property owner is Queensland Housing Commission and Property Services Team on behalf of Council will be undertaking all associated contact and negotiations to achieve an agreement for the acquisition of land for road purposes.

Conclusion

It is recommended that Council proceed with the acquisition of land for road purposes over the following property:

·    Part of Lot 25 RP110739, 14 William Street Blackstone

The Council will make all reasonable attempts to negotiate by agreement. However if unsuccessful the Council cannot exercise its powers under the Acquisition of Land Act 1967 as it is unable to compulsorily acquire from a State Government Department.

Attachments and Confidential Background Papers

 

1.

Acquisition Plan Part of 14 William Street Blackstone

 

Alicia Rieck

Senior Property Officer

I concur with the recommendations contained in this report.

Brett McGrath

Principal Property 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”


Council

Meeting Agenda

10 December

2019

Item N.3 / Attachment 1.

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Council

Meeting Agenda

10 December

2019

 

Doc ID No: A5933668

 

ITEM:            N.4

SUBJECT:      Brisbane Lions Stadium Funding Agreement

AUTHOR:      General Manager - Coordination and Performance

DATE:            2 December 2019

 

 

Executive Summary

This is a report concerning Ipswich City Council’s funding of the stadium and training facility to be constructed by the Brisbane Lions at Springfield. The stadium and training facility is being constructed by the Lions but will be owned by Ipswich City Council and leased to the Brisbane Lions.

In 2017, Council signed a non-binding heads of agreement (HOA) with the Brisbane Lions which included a commitment for Council to provide funds towards the construction of the stadium project in the amount of approximately $12 million dollars.

Council has since entered into negotiations with the Brisbane Lions in relation to Council’s overall financial contribution to the project. These negotiations have included the possible embellishment by the Brisbane Lions of an additional local sportsground for community use, adjacent to the Lions stadium.

The purpose of this report is to seek approval from Council to proceed with the funding as stipulated in this report and to enable the Chief Executive Officer to finalise the negotiations with the Brisbane Lions and execute a binding funding agreement between the two parties

Recommendation/s

That the Interim Administrator of Ipswich City Council resolve:

A.           That Council (Interim Administrator of Ipswich City Council) enter into a contract with the Brisbane Lions in accordance with the funding arrangements specified in this report.

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

Brisbane Bear-Fitzroy Football Club Ltd, trading as the Brisbane Lions

Springfield City Group (formerly Springfield Land Corporation)

There are no known conflicts of interest in relation to this report.

Advance Ipswich Theme

Managing growth and delivering key infrastructure

Purpose of Report/Background

 

On the 10th of October 2017, Council entered into a non-binding Heads of Agreement (HOA) with the Brisbane Bear-Fitzroy Football Club Ltd, trading as the Brisbane Lions and the Australian Football League (AFL), for the development of the Springfield Central Northern Sporting Fields including a community AFL stadium with spectator facilities and the Lions high performance training and administration centre. A copy of the HOA is attached to this report (Attachment 1).  This replaced an earlier MOU prepared in 2014 that addressed substantially the same matters.


The primary lot for the Lions stadium is described as Development Area 22A - 60 Springfield Greenbank Arterial, Springfield Central. The Lions stadium and associated training and administration buildings will be constructed on this lot.

 

There is also an additional lot adjacent to DA 22A which is described as Development Area 22B – 60 Springfield Greenbank Arterial, Springfield Central. This land is also cited in the MOU and is intended to be used as community sporting fields but will be leased to, and embellished by, the Brisbane Lions.

 

Attachment 2 depicts DA 22A and DA 22B.


In the HOA, Council committed to provide the Lions with the funds required to be spent by Springfield Land Corporation (now Springfield City Group SCG) under existing development approval conditions for embellishment of the site, amounting to approximately $12 million.

 

Council has since calculated the SCG embellishment contribution for DA 22A and DA 22B to be actually a total of $10,609,373.60 based on a Citywide Sportsground value under the Local Government Infrastructure Plan (LGIP).

 

In 2014, Council advised SCG via formal correspondence that due to the realignment by Council of Eden Station Drive, they were required to deliver 1 less field between DA’s 22A and 22B. Council have been in negotiations with SCG as to the amount that should be deducted from the $10,609,373 for the removal of 1 field. The reduction in 1 field under the LGIP rate is calculated at $820,089. This would in effect reduce the SCG contribution down to $9,789,284.

 

In 2017, Council agreed to move SCG’s requirement to deliver 8 courts on DA22A and DA22B and instead required them to be delivered on Development Areas 16 and 17 (Southern Sportsfields). The amount of this embellishment reduction is calculated by Council to be $521,866.32.

 

In summary, Council calculates a total reduction of $1,563,109.18 from SCG’s total original embellishment contribution for DA’s 22A and 22B. This means that SCG’s total embellishment contribution equals $9,046,264.42.

 

The following table summarises these calculations:

 

LGIP SOW Construction rate (2015)

8,532,450.00

Plus 4% Contingency

8,873,748.00

Plus 12% On costs

9,938,597.76

x1.03 (2016 Indexation)

10,236,755.69

x1.0364 (2017 to 2019 Indexation)

10,609,373.60

2019 / 2020 Citywide Sportsground Value

10,609,373.60

Minus 8 x Courts (2018/19 SCG Figure - DA16/17) x 1.03

(indexation to 19/20 financial year)

521,866.32

Minus 1 Field (2018/19 SCG Figure DA16/17) x 1.03

(indexation to 19/20 financial year)

820,089

 

Sub Total

1,341,955.32

Plus 4% Contingency

1,395,633.20

Plus 12% On Costs

1,563,109.18

SCG Embellishment Contribution Value

9,046,264.42

 

Following these calculations, Council has considered its position in relation to the funding to be provided to the Brisbane Lions, as stated in the HOA. Council has identified that there

is a significant shortfall between Council’s indicative contribution under the HOA ($12m) and the amount of SCG’s embellishment contribution value of $9,046,264.42.

 

Given that the Council decisions to allow for the removal of 1 field and 8 courts from the SCG contribution were made independent to the HOA with Brisbane Lions, it is considered inequitable and unethical that Brisbane Lions should be required to meet the shortfall created by Council’s separate decisions with SCG.  It is therefore recommended that Council consider contributing these reduction amounts in addition to the SCG contribution amount.

 

This would mean an additional Council contribution of a total of $1,563,109.18 which would bring Council’s total contribution to the stadium project to $10,609,373.60.

 

Brisbane Lions have requested that Council consider providing Brisbane Lions with early access to Development Area 22B to enable Brisbane Lions to develop the community sports facilities earlier – and to a higher standard – than Council would normally have done.  This would require Council providing Brisbane Lions with the embellishment funds mandated under the Springfield Infrastructure Agreement to be spent by Council to embellish the site to a local sportsground standard.

 

It would cost Council a total of $2,991,051.42 to embellish DA 22B under the LGIP rates to a local sportsground standard. This amount does not allow for the provision of a club house. A club house is estimated to cost a further approximately $1,500,000.

 

The calculations for Council’s cost to embellish DA 22B to a local sportsground standard are contained in the following table.

 

LGIP SOW Construction rate (2015)

$ 2,405,514.00

Plus 4% Contingency

$ 2,501,734.56

Plus 12% On costs

$ 2,801,942.71

x1.03 (2016 Indexation)

$ 2,886,000.99

x1.0364 (2017 to 2019 Indexation)

$ 2,991,051.42

2019 Local Sportsground Value

$  2,991,051.42

 

Brisbane Lions have advised that if Council provides them with an additional $2,991,051.42 as part of the funding arrangement for the stadium project, they will embellish DA 22B to the standard required by Council and in addition, will construct a community sports clubhouse and install field lighting. Brisbane Lions would then lease this field from Council to be used by the Lions for some training and on game days for warm up, but will predominantly be used by local sporting groups.

 

Council does not currently have the embellishment of DA 22B in its forward capital project planning or long term financial forecast.

 

If Council were to approve this additional contribution to the Brisbane Lions project under a funding agreement, the total Council contribution to the project would be $13,600,425. This would have the added community benefit of an enhanced outcome for the local sportsground on DA 22B in terms of standard and timing.

Under the HOA, Council previously provided the Lions with a non-binding commitment to contribute approximately $12 million to the project which only included the development of DA 22A for the stadium and training facility.

If Council were to agree to contribute the $13,600,425 to the project, the community will also get a local sportsground constructed with a clubhouse and lighting, to a standard far higher than Council would eventually deliver on its own. This is considered to be a positive outcome for Council and the community.

Legal/Policy Basis

This report and its recommendations are consistent with the following legislative provisions:

Local Government Act 2009

RISK MANAGEMENT IMPLICATIONS

 

Providing the additional funds to the Lions to embellish DA 22B creates a possible risk that the Lions could fail to fulfil their obligations under the funding agreement and the local sportsground will not be constructed. In this event, the funding deed will stipulate that the Lions must embellish DA 22B to the required standard by a specified timeframe of 4 years and that failure to meet this deadline will result in the Lions have to refund the additional contribution to Council. The risks associated with this aspect of the proposed agreement can be somewhat mitigated by a legally drafted and specific funding agreement between Council and the Lions.

Financial/RESOURCE IMPLICATIONS

The proposed funding agreement will result in Council providing the Lions with an additional total amount of $4,554,160 on top of the SCG contribution.

This amount, if approved, can be spread over multiple financial years.

COMMUNITY and OTHER CONSULTATION

Council’s Infrastructure and Environment Department have been consulted in relation to this report, and they have advised that they are supportive of the funding to be provided to the Brisbane Lions for the embellishment of 22B due to the need for sports ground for the community in the greater Springfield area.

Council’s Finance team have been consulted in relation to this report and they have advised that they are able to accommodate this in Council’s long term financial forecast under the proviso that the funds are provided to Brisbane Lions over multiple financial years.

There has been no community consultation in relation to this report however the Brisbane Lions have been conducting consultation with the community in relation to their project.

Conclusion

It is recommended that in the interests of enabling the Lions to construct the stadium and training facility, which will be owned by Council, that Council contribute the additional funds specified in this report to the project.

This ensures that Council honour its original non-binding commitment under the heads of agreement and also results in the construction of a local sportsground with a clubhouse and lighting for the local community to use. The construction of the local sportsground would be delivered under this agreement earlier, and to a far better standard, than if Council were to undertake the embellishment itself.

Attachments and Confidential Background Papers

 

1.

Heads of Agreement

2.

Development Area 22A and 22B (Northern)

 

Sean Madigan

General Manager - Coordination and Performance

I concur with the recommendations contained in this report.

Greg Chemello

Interim Administrator

 

“Together, we proudly enhance the quality of life for our community”


Council

Meeting Agenda

10 December

2019

Item N.4 / Attachment 1.

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Council

Meeting Agenda

10 December

2019

Item N.4 / Attachment 2.


Council

Meeting Agenda

10 December

2019

 

Doc ID No: A5932709

 

ITEM:            N.5

SUBJECT:      Budget Amendment - December 2019

AUTHOR:      Treasury Accounting Manager

DATE:            1 December 2019

 

 

Executive Summary

This is a report concerning an amendment of the 2019‑2020 Budget and Long Term Financial Forecast (LTFF), submitted in accordance with Section 170(3) of the Local Government Regulation 2012.

Recommendation/s

That the Interim Administrator of Ipswich City Council resolve:

A.           That the amended 2019‑2020 Budget and Long Term Financial Forecast, as detailed in Attachments 1, 2 and 3 of the report by the Treasury Accounting Manager dated 1 December 2019, be adopted.

 

B.           That the amended Debt Policy, as detailed in Attachment 4 to the report by the Treasury Accounting Manager dated 1 December 2019, be adopted.

RELATED PARTIES

There are no related party matters that are directly associated with this report.

However, the provision of the amended budget detailed in this report provides Council with the financial capacity to engage with suppliers and contractors to deliver on the retail precincts of the Nicholas Street Development.  The details of which have been the subject of prior reports to Council.

Advance Ipswich Theme

Listening, leading and financial management

Purpose of Report/Background

There are three main areas of focus as part of this budget amendment.  The first being an update of the audited financial results for 2018‑2019 and consequential impacts on the Statement of Financial Position for the budget and forecast periods.  Secondly, an update of key assumptions related to interest revenue, interest expense and the Waste Management Utility Charges.  The third relates to the retail precincts of the Nicholas Street Development.

These amendments are outlined in the following sub-sections, with the financial impacts outlined in the FINANCIAL/RESOURCES IMPLICATIONS section of this report. 

Update due to 2018‑2019 Actuals

There are number of changes that flow into the Statement of Financial Position as a result of updating the Budget and LTFF with the 2018‑2019 audited financial results.  These changes are generally consequential in nature such as movements in accounts receivable and accounts payable, accrued developer refunds, accrued State Government waste levy and disposal of land held for resale.

Interest Revenue

Due to the actual results for 2018‑2019, the average cash balance for 2019‑2020 is now forecast to be higher than that which was forecast in the adopted budget.  Following cuts by the RBA to the official cash rate during the first half of the 2019‑2020 financial year, the revised estimates also include a 50 basis point downgrade on the interest rate forecast.  This has resulted in a reduction in interest revenue of $614,000 for 2019‑2020 as well as reductions during the forecast period 2020‑2021 through 2028‑2029.

Interest Expense

The interest rates on the $101 million of new loans borrowed at the end of 2018‑2019 were on average 114 basis points lower than forecast in the 2019‑2020 Budget.  This has resulted in a reduction of approximately $1.1 million for 2019‑2020.  The interest outlook has for the forecast period has also been downgraded based on current interest rates and their likely movement in the short to medium term.

Waste Management Utility Charges

As highlighted in Council’s monthly financial reporting a forecasting error was included the Waste Management Utility Charges, specifically the revenue from the household waste service (wheelie bin charge).  Accordingly the budget amendment includes a reduction in utility charges of $1 million.

Retail Precincts of the Nicholas Street Development

This budget amendment includes changes to reflect the strategy and investment proposals as outlined in several prior reports concerning the retail precincts of the Nicholas Street Development (the prior reports):

1)    The report to the Council meeting of 28 October 2019, concerning the Retail Property Strategy Ipswich Central; and

2)    The report to the Economic Development Committee of 3 December 2019, concerning the Tender Consideration Plan Approval – Retail Construction – Nicholas Street – Ipswich Central.

In summary the strategy outlined in these prior reports is based on the detailed business case prepared by KPMG and supporting cost and valuation assumptions.

The financial impacts outlined in this report related to the retail precincts of the Nicholas Street Development are based on an accounting analysis of those assumptions and supporting costs and may result in different financial outcomes than those contained in the KPMG business case which is on a project feasibility basis.

This report addresses the financial considerations of the proposed retail precinct development but does not seek to further analyse or comment on the other corporate and community objectives identified in the prior reports.

The development of the Commonwealth Hotel, Venue, Eats, and Metro B retail precincts is being considered in conjunction with the Civic, Library and Administration Building components of the Nicholas Street Development. The proposal includes the development (construction and fitout), leasing of tenancies and subsequent disposal of these assets.

The budget amendment includes $43.6 million for construction and fitout (capital lease incentives) of these retail precincts during 2019‑2020 and 2020‑2021, with $34.9 million, or approximately 80%, to be funded from additional borrowings over the same period.  Due to the timing of project expenditure in 2018‑2019, the unspent project allocations have been rolled into 2020‑2021.

To maximise leasing potential, the scheduling of construction activities is timed to coincide with the planned completion of the relevant stages of the Civic, Library and Administration Building construction activities.

The intended disposal of the resulting retail assets will be subject to appropriate disposal processes in accordance with the requirements of the Local Government Act 2009.  These disposals are planned for approximately two years post construction with the intent of maximising the disposal value of the assets in the open market.

On the basis of the intention to only hold these retail assets for a period of approximately two years post construction, it is intended that the additional borrowings will on an interest only basis or through a working capital facility, with the principal repayment made from the sale proceeds of the retail assets.

These additional borrowings will require an amendment to the 2019‑2020 Debt Policy.  Attachment 4 details the proposed amendments to the Debt Policy to reflect these additional borrowings and a minor change to permit borrowings on an interest only basis.

The modelling undertaken by the Finance Branch has been incorporated into the amended 2019‑2020 Budget and LTFF.  The key assumptions of the prior reports that are most likely to influence the financial viability of developing the retail precincts are:

a)    Construction costs, rental revenues and ongoing operating costs can be managed and delivered in line with the projects forecast;

b)    Additional borrowings are on an interest only basis with the principal repayment made from the sale proceeds of the retail assets;

c)    That the retail precincts will be fully tenanted (100% occupancy) within two years following the completion of construction; and

d)    That a take-out party can be found and the retail assets disposed on the open market at their forecast value.

On the premise that these key assumptions i.e. build, achieve 100% tenancy and sale after two years can be achieved, the financial modelling suggests that the development of the retail precincts will generate a positive cash flow as the land component is already a sunk cost that was incurred in prior years.  However on sale of the retail assets, the existing land value and construction costs will be written-off as part of the disposal resulting in a loss on sale of approximately $8.0 million.

Alternative Modelled Scenario

The Finance Branch has also modelled an alternative scenario where these key assumptions are not achieved, principally the 100% tenancy and the successful disposal of the retail assets.

The alternative scenario has been modelled to assess the financial impacts of not achieving the key assumptions of the primary scenario and includes the following alternative assumptions:

a)    Construction costs, rental revenues and ongoing operating costs can be managed and delivered in line with the projects forecast (an increase in capital and operating costs was considered for this scenario but was not modelled as these costs can be relatively controlled by Council and are unlikely to significantly impact financial outcomes);

b)    Additional borrowings are on a standard principal and interest repayment basis over 15 years (in line with usual Council borrowings);

c)    That the retail precincts can only be tenanted to 50% occupancy following the completion of construction and remain at that 50% level for the remainder of the forecast period; and

d)    That a take-out party cannot be found, resulting in the retails assets continuing to remain in Council’s ownership.

Under this scenario, at 50% occupancy the rental revenue should be able to cover operational costs plus interest costs while still achieving a small operating cash surplus.  However at 50% occupancy the rental revenues will not be able to fund the likely depreciation/impairment or the principal repayments on the additional borrowings.

The impact on total community equity over the ten years of the LTFF is estimated to be a reduction of $18.5 million while total cash would be reduced by approximately $27.9 million.

Under this scenario a reduction of available cash will impact Council’s ability to fund other capital programs or services currently included in the Budget and LTFF.


 

Legal/Policy Basis

This report and its recommendations are consistent with the following legislative provisions:

Local Government Regulation 2012
Debt Policy (subject to proposed amendments)

RISK MANAGEMENT IMPLICATIONS

Retail Precincts of the Nicholas Street Development

Financial risks faced by Council as a result of the strategy to investment in the retail precincts will be impacted by:

·     Any variations to construction, development and leasing costs;

·     Rental returns less than those identified through market sounding and forecast in the KPMG business case;

·     Tenancy take-up rates are slow and required levels tenancy are not achieved;

·     Successfully attracting a takeout party or parties and timing of sales;

·     Market remains unsure about the commercial viability of the precincts and this results in a lower sale price.

Council’s commitment to the success of the Nicholas Street Development through ongoing involvement and activation of the Civic precinct will be a key factor in the success of the investment and disposal strategy for the retail precincts.

The Finance Branch have not modelled all the various combination of the scenarios outlined in these risks.  However, the alternative scenario that has been modelled is considered to represent a significant divergence away from the primary scenario and strategy outlined in the KPMG business case, to sufficiently quantify the ongoing financial impacts of these risks.

The alternative scenario has modelled the key risk that Council is unable to achieve the required level of tenancy to prove the commercial viability of the retail assets.  This subsequently does not create sufficient value to attract external investment through the sale of the retail assets.  Council would therefore continue to hold the retail assets and fund the associated debt related to the construction and development costs.

However, the decision to follow the investment strategy for the retail precincts is not based solely on financial outcomes.  As outlined in the prior report (Retail Property Strategy Ipswich Central), not investing in these retail precincts at this time would seriously impact the ability of Council to achieve its other objectives in relation to the revitalisation of the Nicholas Street precinct.

The investment and disposal strategy as presented in the KPMG business case is based on market sounding as well as independent valuations and financial analysis.


 

Interest only Borrowings

The draw down and repayment of the additional borrowings on an interest only basis is subject to the approval of the Queensland Treasury Corporation (QTC) and the Queensland Government through the Department of Local Government, Racing and Multicultural Affairs (DLGRMA).

Financial/RESOURCE IMPLICATIONS

Waste Management Utility Charges

The reduction of utility charge revenue by $1 million in 2019‑2020 has flow on effects in the remaining forecast years of the LTFF and impacts revenues, operating surpluses and cashflows by approximately $13 million over the ten years of the LTFF.  This impact will need to be monitored during the second half of the 2019‑2020 Budget period and further considered in the development of the 2020‑2021 Budget and LTFF.

Retail Precincts of the Nicholas Street Development

For 2019‑2020, the financial impacts relate to the additional $20.1 million of capital expenditure and $16.1 million of borrowings.  The remaining $23.5 million of capital expenditure and $18.8 million of borrowings are allocated to 2020‑2021.

From 2020‑2021 through 2022‑2023 the rental income and operating costs as well as the related interest expense increases as the projected tenancies increase.  These revenues and expenses cease in 2022‑2023 when it is estimated that the retail assets will be sold for $50 million and the interest only debt is repaid.  2022‑2023 also includes a forecast loss on disposal of $8.0 million which takes into consideration the existing accounting value of the land related to the retail assets and construction costs.

Operating Surplus

The changes proposed in this budget amendment results in a reduction of the operating surplus for 2019‑2020 of $488,000 to forecast surplus of $2.7 million.

Operating Revenue

Operating revenue has been forecast to reduce by approximately $1.6 million due to the adjustments outlined below:

•     Waste Management Utility Charge revenue reduced by $1.0 million; and

•     Interest revenue is reduced by of $614,000 due to the combination of movements in the average cash balance across 2019‑2020 and a reduction in the expected interest rate for the remainder of 2019‑2020.

Operating Expenses

Operating expenses have been forecast to decrease by a $1.1 million due lower than forecast interest rates on the 2018‑2019 new borrowings.  There is also a minor change to depreciation of $10,000.

Capital Expenditure

A total of $43.6 million of capital expenditure has been added the budget and forecast period ($20.1 million in 2019‑2020 and $23.5 million in 2020‑2021) which aligns with the proposals for the retail precincts of the Nicholas Street Development.

Cashflow

The overall change to the forecast end of period cash balance for 2019‑2020 is an increase of $21.2 million.  It is the net of a $36.5 million increase due a change in the opening cash balance for 2019‑2020, a $15.3 million decrease due to the reduction in accrued payables as well as the other budget amendments outlined in this report.

COMMUNITY and OTHER CONSULTATION

The specific contents of this budget amendment report have not been the subject of community consultation, however community engagement in general has occurred in relation to the Nicholas Street Development.

The details of the amended budget as outlined in this report have been gathered and forecast in consultation with those departmental areas having operational responsibility for those components of the budget: the Coordination and Performance Department relating to the retail precincts of the Nicholas Street Development; and the Infrastructure and Environment Department relating to the Waste Management Utility Charges.

Conclusion

This budget amendment has been prepared to incorporate consequential impacts of audited financial results for 2018‑2019, changes to key assumptions related to interest revenue, interest expense and the Waste Management Utility Charges as well as incorporating Council investment in the retail precincts of the Nicholas Street Development into Council’s Budget and Long Term Financial Forecast.

As required by section 169 of the Local Government Regulation 2012, the proposed amended Budget documents including the Long Term Financial Forecast, Council’s Revenue Policy, Revenue statement and revised Debt Policy are attached (Attachments 1, 2, 3 and 4) .  There are no changes to the Revenue Policy and Revenue Statement compared to the documents adopted in Council’s annual 2019‑2020 Budget (noting that the Revenue Policy and Revenue Statement have been maintained in their formats as contained in the 2019‑2020 Budget).

 

Attachments and Confidential Background Papers

 

1.

Amended 2019-2020 Budget and Long Term Financial Forecast

2.

2019-2020 Revenue Policy

3.

2019-2020 Revenue Statement

4.

Amended 2019-2020 Debt Policy

 

Paul Mollenhauer

Treasury Accounting 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”


Council

Meeting Agenda

10 December

2019

Item N.5 / Attachment 1.

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Council

Meeting Agenda

10 December

2019

Item N.5 / Attachment 2.

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Council

Meeting Agenda

10 December

2019

Item N.5 / Attachment 3.

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Council

Meeting Agenda

10 December

2019

Item N.5 / Attachment 4.

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Council

Meeting Agenda

10 December

2019

 

Doc ID No: A5904398

 

ITEM:            N.6

SUBJECT:      Delegation of Council Powers and Functions to Chief Executive Officer

AUTHOR:      Project Officer

DATE:            3 December 2019

 

 

Executive Summary

This is a report concerning the review and repeal of the current delegation instruments (powers and functions) from Council to the Chief Executive Officer (CEO) and the adoption of a new Instrument of Delegation of powers and functions from Council to the CEO.

Recommendation/s

That the Interim Administrator of Ipswich City Council resolve:

A.           That the Interim Administrator of Ipswich City Council repeal all the instruments of delegation from Council to the Chief Executive Officer as detailed in Attachment 1 of this report dated 3 December 2019.

 

B.           That the Interim Administrator of Ipswich City Council delegate all of the powers or functions of the Ipswich City Council to the Chief Executive Officer in accordance with Delegation Instrument LGD-2019-1(including attached schedule of powers (Attachment 3)), as detailed in Attachment 2 of this report dated 3 December 2019.

RELATED PARTIES

There are no related party matters associated with this report.

Advance Ipswich Theme

Listening, leading and financial management

Purpose of Report/Background

Local governments are required to make numerous decisions every day to properly discharge their powers and functions under the various local government acts which Council administer and enforce.

In order that a local government is able to focus on strategic issues and reduce the administrative burden, from making all decisions for Council, under the relevant legislation which it administers and enforces, it is critical that a local government must lawfully delegate Council’s powers and functions to Council’s CEO. This process allows Council to operate its administrative operations efficiently and effectively. The delegation of powers and functions, from Council to the CEO, reduces the requirement for Council itself to make every decision, impacting on Council and avoids the necessity for Council to make all decisions which need to be made, operationally on a daily basis by Council’s administration.    

Section 257 of the Local Government Act 2009 (”LGA”) provides the head of power to local governments to delegate their powers and functions, by resolution, to the CEO.  As part of the ongoing review of council’s delegations and as a result of Transformational Project (TP11) Council engaged an external legal provider to review all of Council’s instruments of delegation from Council to the CEO and Council’s register of delegations. The Legal provider has completed a lengthy and detailed review of Council’s delegation instruments and drafted a new Instrument of Delegation containing a schedule of all powers, under the relevant legislation, to be administered by Council. The new instrument of delegation from Council to the CEO satisfies the requirements of s257 of the Local Government Act 2009, for the delegation of Council powers and functions.   The new instrument and schedule of powers are contained in Attachment 2 to this report.

The single delegation instrument (with schedule of all powers, under all acts of parliament and subordinate legislation in Queensland) administered by Council is drafted in a way to enable the effective preparation of the delegations’ register, which will be publicly available on line and provide transparency of the process and the appropriate Council delegation of powers from Council to the CEO and the sub-delegations from the CEO to council officers.

The instrument of delegation of power from Council to the CEO identifies when  a local government or the CEO are acting as the delegator or sub-delegator, and in situations where it relates to delegated state government powers, directly delegated from the Minister to Council, under the relevant state act.  As an example the Minister for Economic Development Queensland under the Economic Development Act 2012 attaches appropriate conditions to the delegation of powers (as the delegator), when MEDQ delegates its powers and functions to Council. These powers are now included in LGD 2019-1 the new delegation instrument (attachment 2)

It was identified as part of Council’s review of its delegation instruments and framework, that the relevant legislative scheme (Local Government Act 2009 and Local Government Regulation 2012 (“LGR”) requires the identification of the provisions (sections, chapters/divisions) of various acts, administered by local governments, which are being delegated by the Interim Administrator to the CEO. 

The only current delegation instrument from Council to the chief executive officer which will currently remain in its current format is the instrument from Council to the CEO, in relation to the repealed Sustainable Planning Act 2009.  Whilst Council no longer make decisions in accordance with this Act, out of an abundance of caution it will remain until the 12 monthly review of all delegations.

The relevant delegated powers contained in the new local laws which were adopted at the November 2019 Council meeting have been included in the delegation instrument.

Legal/Policy Basis

This report and its recommendations are consistent with the following legislative provisions:

Local Government Act 2009

RISK MANAGEMENT IMPLICATIONS

The current existing instruments of delegation from Council to the CEO must meet the legal requirements under the LGA and LGR.  In order that a delegation of power is to be effective under s257 of the LGA it must relevantly contain, for the purpose of section 260(1) of the LGA, the particulars prescribed under section 305(1) of the LGR.  The delegation instrument must contain a description of the powers delegated and the provisions (sections) under one of the local government acts, permitting or requiring the exercise of the powers.

It is important that the relevant section (provision, chapter or division) of the act or sub-ordinate legislation that is being delegated, be specifically referred to, and to whom the power is being delegated.

A number of the existing instruments of delegation contained a number of substantial errors and inconsistencies and were not current.  Whilst it is almost impossible to be correct in all the circumstances, especially where there is uncertainty in the legislative framework, the current delegation instruments (LGD-2019-1), from Council to the CEO is up-to-date and all powers are lawfully described and delegated.  The new instrument of delegation of powers from Council to the CEO will allow the preparation of an efficient delegation register and the ability to amend the instrument and delegations register, when amendments and legislative change is made.

The current delegation instruments from Council to the CEO only apply conditions where the State have delegated the powers and require the delegation to be the subject of conditions. The delegation instruments which are to be repealed did on occasion, contain conditions which required consultation. The new instrument of delegation has no such restrictions from Council to the CEO, except where necessary, but conditions will be applied to the instruments of sub-delegation from the CEO to council officers as part of better governance.

An administrative directive is currently being prepared to incorporate the process of delegating new functions or powers to ensure a quality assurance process is in place, to minimise the risk and awareness of new legislative changes.

Financial/RESOURCE IMPLICATIONS

There are no resourcing or budget implications as a result of this report.

COMMUNITY and OTHER CONSULTATION

The contents of this report did not require any community consultation.

Conclusion

As part of Transformational Project #11 and the ongoing review of council’s delegations it is proposed to repeal the current delegation instruments from Council to the CEO and adopt a new delegation instrument identifying individually all the legislative powers and functions that Council administers.

Attachments and Confidential Background Papers

 

1.

Current delegations to CEO

2.

Instrument of Delegation to CEO

3.

Schedule (under separate cover)  

 

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

Manager Legal and Governance (General Counsel)

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”


Council

Meeting Agenda

10 December

2019

Item N.6 / Attachment 1.

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Council

Meeting Agenda

10 December

2019

Item N.6 / Attachment 2.

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Council

Meeting Agenda

10 December

2019

 

Doc ID No: A5934421

 

ITEM:            N.7

SUBJECT:      Project Management Services - Commonwealth Hotel and Retail Components Nicholas Street - Ipswich Central

AUTHOR:      Project Manager

DATE:            2 December 2019

 

 

Executive Summary

This is a report concerning the provision of program management services for the delivery of the Commonwealth Hotel and the Retail components of the Nicholas St – Ipswich Central Project (Project).  The report is seeking approval from Council for a variation to Council contract No. 13908 with Ranbury Management Group Pty Ltd (Ranbury) for a fixed management fee for Ranbury to project manage delivery of the Commonwealth Hotel (Package 3) and Retail (Package 4) components of the Project.

Recommendation/s

 

That the Interim Administrator of Ipswich City Council resolve:

 

A.         That Council (Interim Administrator of Ipswich City Council) approve a variation to Contract No. 13908 with Ranbury Management Group Pty Ltd for the provision of Program Management Services for Package 3 (Commonwealth Hotel) and Package 4 (Retail) as outlined in confidential Attachment 3.

B.         That the Chief Executive Officer be authorised to negotiate and finalise any amendments or variations to the terms of the Contract No. 13908 executed by Council and to do any other act necessary to implement Council’s decision in accordance with section 13(3) of the Local Government Act 2009.

RELATED PARTIES

Ranbury Management Group Pty Ltd (Program Management Partner).

 

The Interim Administrator informs that he has, or could reasonably be taken to have a perceived conflict of interest in this report titled Project Management Services – Retail Component Nicholas St - Ipswich Central.  The nature of the perceived interest is that Ranbury is the primary consultant for the CBD redevelopment and from 2008 to 2012 he was an employee and was a director and part owner of Ranbury but has had no association with the company since then other than through his current role.

Advance Ipswich Theme

Strengthening our local economy and building prosperity

Purpose of Report/Background

The purpose of this report is to seek approval for a variation to Council Contract No. 13908 with Ranbury for the provision of program management services for the delivery of the Commonwealth Hotel and the Retail components of the Nicholas St – Ipswich Central Project (Project).   

In 2016, Ranbury was engaged following an open public tender process as the Program Management Partner and entered into a Management Services Agreement (MSA) with Ipswich City Properties Pty Ltd (ICP).  By resolution of Council on 27 June 2019, this MSA was novated to council as part of the process to transition ICP’s activities to council to allow Ranbury to continue to deliver Program Management Services to the Project.

 

The MSA includes a schedule of rates for Ranbury to provide various roles to undertake typical project delivery services.  The term of the MSA is 36 months, with the option for the parties to extend for a further 12 months with the initial three-year term expiring in April 2020.  It will be necessary to modify the terms and conditions of this contract to allow its extension to encompass the remaining works on the Project.

The MSA terms include Ranbury’s original tender proposal which included the ability for the parties to agree to fixed fees as appropriate for a particular scope of works when the scope and duration can be adequately described.  The project has four main components (packages of work):

·     Package 1 - Ipswich Central Civic Project (Administration Building, Library, Civic Space and Car Park);

·     Package 2 - Nicholas Street/Union Place upgrade (new pavement, roadway, in-ground services, paving and landscaping);

·     Package 3 - Commonwealth Hotel (deconstruction, stabilisation and reestablishment of the building structure);

·     Package 4 - Retail precinct (design, tendering, refurbishment and fit-out of existing tenancies and buildings – the Venue, EATS and Metro B).

 

It was always Council’s intention where possible, to secure a fixed fee arrangement for the above four work packages to achieve value for money and control risk for Ipswich ratepayers.  Following a Council decision on 28 October 2019, fixed fee arrangements are currently in place for Packages 1 and 2. 

 

Given the history of Ranbury’s involvement in CBD redevelopment, there are considerable advantages to Council in seeking a variation to Ranbury’s existing engagement for fixed fees for program management services for Packages 3 and 4, these include: 

 

·    Maintaining the intellectual knowledge on the Project due to longstanding involvement; and

 

·    A single point of responsibility for the project management of design and management of construction works in a confined area of the CBD.

 

Ranbury’s fee proposal dated 17 October 2019 (refer confidential Attachment 4) detailed fixed fee submissions for each of the packages.  The fixed price fee for the Commonwealth Hotel (Package 3) being $208,120 (ex GST) and for the Retail project (Package 4) $1,203,060 (ex GST).  A detailed assessment of Ranbury’s fee proposal is included in confidential Attachment 3. 

Independent Third-Party Reviews

Quantity Surveyor

Independent quantity surveyor, Rider Levett Bucknall (RLB) performed a fee/rate benchmarking and advice exercise of Ranbury’s proposals for Packages 3 and 4 with their conclusions detailed in confidential Attachments 5 and 6.  The two reports prepared by RLB addressed the following:

·    Comparison of applicable Ranbury’s proposed hourly rates against standard current industry market rates; and

·    Comparison of proposed fees for Packages 3 and 4 against projects of a similar nature.

Fees proposed for Packages 3 and 4 fell within or extremely close to the standard market range.

Probity Advisor

Independent probity consultant, Argyle Corporate Advisers, performed a review to confirm that the process to negotiate project management services for Packages 3 and 4 was consistent with:

·    Council’s procurement principles;

·    The existing MSA; and

·    Adheres to the sound contracting principles as set out in Section 104(3) of the Local Government Act 2009.

A probity statement is included in Attachment 1, with a more detailed probity review report included in confidential Attachment 2 – both of which confirm compliance.

Legal/Policy Basis

 

This report and its recommendations are consistent with the following legislative provisions:

Local Government Act 2009

RISK MANAGEMENT IMPLICATIONS

Failure to secure the contractual variation may impact delivery costs in relation to the program management services being provided by Ranbury.  If Ranbury were to continue under the MSA, there is a risk that Council would be unable to accurately control related costs over the duration of the project. 

There are no identified risks to Council’s reputation by approving the contract variation proposed as due diligence has been conducted to ensure value for money and sound contracting principles.

Financial/RESOURCE IMPLICATIONS

 

Converting to the fixed fee provides Council with budgetary certainty in relation to the delivery of the program management services being provided by Ranbury for Packages 3 and 4.

 

The funding for the Commonwealth Hotel and the Retail components of the Nicholas St –

Ipswich Central Project is the subject of a separate report to Council.

COMMUNITY and OTHER CONSULTATION

This report follows ongoing consultation with the Project Steering Committee and relevant internal stakeholders including Council’s finance team.

No community consultation was required in relation to this matter.

Conclusion

Awarding of a fixed fee variation for Packages 3 and 4 of the Nicholas St – Ipswich Central Project will provide Council with certainty in the scope and financial impact of services being provided by Ranbury and will ensure that the maintenance of intellectual property and knowledge for the project.  Reports provided by independent consultants have confirmed the procurement process followed with this engagement is acceptable and that the fee proposal will ensure value for money to Council.

Attachments and Confidential Background Papers

 

1.

Probity Review Statement

 

 

 

CONFIDENTIAL

2.

Probity Review Report  

3.

Fee Proposal Assessment  

4.

Ranbury Fee Proposal 17 October 2019  

5.

Quantity Surveyor Report - Rate Benchmarking  

6.

Quantity Seurveyor Report - Awnings and Retail Fees Benchmarking  

 

Greg Thomas

Project Manager

I concur with the recommendations contained in this report.

Sean Madigan

General Manager - Coordination and Performance

 

“Together, we proudly enhance the quality of life for our community”


Council

Meeting Agenda

10 December

2019

Item N.7 / Attachment 1.

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