Agenda of Governance and Transparency Committee

Governance and Transparency Committee

Meeting Agenda

5 May

2022

Governance and Transparency Committee AGENDA

10 minutes after the conclusion of the Growth, Infrastructure and Waste Committee on Thursday, 5 May 2022

Council Chambers

Item No.	Item Title	Page No.
	Welcome to Country or Acknowledgment of Country
	Declarations of Interest
	Business Outstanding
	Confirmation of Minutes
1	Confirmation of Minutes of the Governance and Transparency Committee No. 2022(03) of 7 April 2022	7
	Officers’ Reports
2	Quarter 3 - Operational Plan 2021-2022 Quarterly Performance	12
3	Quarterly Reports to the Department of State Development, Infrastructure, Local Government and Planning	56
4	**Appointment of Urban Utilities Board Member	79
5	**Procurement: 18397 Supply & Delivery of Six (6) Waste Collection / Compaction Trucks	83
	Notices of Motion
	Matters Arising

** Item includes confidential papers

Governance and Transparency Committee NO. 4

5 May 2022

AGENDA

Welcome to Country or Acknowledgement of Country

DECLARATIONS OF INTEREST IN MATTERS ON THE AGENDA

BUSINESS OUTSTANDING

Confirmation of Minutes

1. Confirmation of Minutes of the Governance and Transparency Committee No. 2022(03) of 7 April 2022

Recommendation

That the Minutes of the Meeting held on 7 April 2022 be confirmed.

Officers’ Reports

2. Quarter 3 - Operational Plan 2021-2022 Quarterly Performance

This is a report concerning an assessment of Ipswich City Council’s progress towards implementation of the 2021-2022 Operational Plan with notable achievements that have occurred during quarter three (Q3) (January to March 2022). Departmental representatives have provided the presented Q3 data.

Recommendation

That the report be received and the contents noted.

3. Quarterly Reports to the Department of State Development, Infrastructure, Local Government and Planning

This is a report concerning a request received by the Mayor (on behalf of Council) from the Director-General, Department of State Development, Infrastructure, Local Government and Planning (DSDILGP) for Council to provide a series of quarterly performance reports through to the quarter ending 30 June 2022.

This is the fourth of the quarterly reports for consideration by the Governance and Transparency Committee and relates to the period January – March 2022. This quarterly report also addresses the recent further request of 21 April 2022 from the Director-General (Attachment 1) concerning the recent change to Council’s Media and Corporate Communication Policy. Endorsement of this quarterly report is sought, with the Mayor to send a letter and the quarterly report to the Director-General.

As noted above, Council’s obligation to provide quarterly performance reporting ends on 30 June 2022. This quarter’s letter seeks direction from the Director-General on concluding this reporting requirement.

Recommendation

That Committee endorse the draft letter and quarterly performance reports (January – March 2022) set out in Attachments 2-7.

4. **Appointment of Urban Utilities Board Member

This is a report concerning the proposed appointment of Gerard Pender to the Board of Urban Utilities.

Recommendation

A. That Council endorse the appointment of Gerard Pender as a Board member of Urban Utilities, effective from 1 July 2022, for a term of three (3) years, expiring
30 June 2025.

B. That the Chief Executive Officer be authorised to sign an Instrument of Appointment of Board Member of Urban Utilities and to do any other acts necessary to implement Council’s decision in accordance with section 13(3) of the Local Government Act 2009.

5. **Procurement: 18397 Supply & Delivery of Six (6) Waste Collection / Compaction Trucks

This is a report concerning the recommendation to award a contract for the supply and delivery of six (6) side loading waste collection and compaction trucks to be utilised by Ipswich Waste Services.

A request for quotation was released under the LGA arrangement for the Supply of Trucks (Cab Chassis) – LGA arrangement reference NPN04.13, to Volvo Group Australia Pty Ltd who were the successful supplier following RFQ 16421 for the replacement of the first eighteen (18) side loading waste collection and compaction trucks in November 2021. This procurement 18397 leveraged the extensive evaluation process and outcomes from 16421 ensuring fleet consistency and value for money.

Recommendation

A. That pursuant to Section 234 of the Local Government Regulation 2012 (Regulation), Council utilise LGA Arrangement NPN04.13 for the supply of Trucks (Cab Chassis) by Local Buy Pty Ltd, for the provision of the supply and delivery of six (6) side loading waste collection and compaction trucks (Council file reference number 18397), with Volvo Group Australia Pty Ltd (T/A Volvo Commercial Vehicles) (Supplier) who is a party to the LGA Arrangement.

B. That under the LGA Arrangement with the Supplier, the approximate purchase price is $2,869,220.00 excluding GST over the entire term, the end date of the initial term being 30 September 2023, with no current options for extension.

C. That Council may enter into ancillary contractual arrangements with the Supplier, as allowed for by the LGA Arrangement.

D. That pursuant to Section 257(1)(b) of the Local Government Act 2009, Council resolve to delegate to the Chief Executive Officer the power to take “contractual action” pursuant to section 238 of the Regulation, in order to implement Council’s decision.

NOTICES OF MOTION

MATTERS ARISING

Governance and Transparency Committee

Meeting Agenda

5 May

2022

Governance and Transparency Committee NO. 2022(03)

7 April 2022

Minutes

COUNCILLORS’ ATTENDANCE: Councillor Jacob Madsen (Chairperson); Councillors Russell Milligan (Deputy Chairperson), Mayor Teresa Harding and Kate Kunzelmann

COUNCILLORS’ APOLOGIES: Councillor Marnie Doyle and Deputy Mayor Nicole Jonic

OFFICERS’ ATTENDANCE: Acting Chief Executive Officer (Peter Tabulo), Acting General Manager Corporate Services (Jeff Keech), Acting General Manager Planning and Regulatory Services (Brett Davey), General Manager Infrastructure and Environment (Sean Madigan), Chief of Staff – Office of the Mayor (Melissa Fitzgerald), Senior Policy and Communications Officer (David Shaw), Manager Community and Cultural Services (Don Stewart), Senior Digital Media and Content Officer (Jodie Richter), Manager, Procurement (Richard White), Acting Engagement Manager (Melanie Rippon) and Theatre Technician (Harrison Cate)

Leave of Absence - Deputy Mayor Nicole Jonic AND COUNCILLOR MARNIE DOYLE

RECOMMENDATION

Moved by Councillor Jacob Madsen:

Seconded by Councillor Kate Kunzelmann:

That a leave of absence be granted for Deputy Mayor Nicole Jonic and Councillor Marnie Doyle.

AFFIRMATIVE NEGATIVE

Councillors: Councillors:

Madsen Nil

Milligan

Harding

Kunzelmann

The motion was put and carried.

WELCOME TO COUNTRY/ACKNOWLEDGEMENT OF COUNTRY

Councillor Jacob Madsen delivered the Acknowledgement of Country.

DECLARATIONS OF INTEREST IN MATTERS ON THE AGENDA

Nil

BUSINESS OUTSTANDING

Nil

Confirmation of Minutes

1. Confirmation of Minutes of the Governance and Transparency Committee No. 2022(02) of 10 March 2022

RECOMMENDATION

Moved by Councillor Kate Kunzelmann:

Seconded by Councillor Russell Milligan:

That the minutes of the Governance and Transparency Committee held on 10 March 2022 be confirmed.

AFFIRMATIVE NEGATIVE

Councillors: Councillors:

Madsen Nil

Milligan

Harding

Kunzelmann

The motion was put and carried.

Officers’ Reports

2. Online Community Engagement Platform - Extension to Contract 12873

This is a report seeking a Council Resolution by Ipswich City Council (Council) to undertake a direct engagement with Harvest Digital Planning Pty Ltd. It is proposed to extend the current contract by a further three (3) years on a 1+1+1 arrangement, for the continuation of the “HIVE” online Community Engagement Platform which enables Council’s Shape Your Ipswich website, whilst a review is undertaken over the next 12 to 24 months. The “HIVE” online Community Engagement Platform (Shape Your Ipswich website) has been used by the Media and Communications Branch, Coordination and Performance Department since 2019 and is the key tool to provide online engagement opportunities for the Ipswich community. The current contract with Harvest Digital Planning expires on 27 June 2022.

RECOMMENDATION

Moved by Mayor Teresa Harding:

Seconded by Councillor Kate Kunzelmann:

A. That pursuant to Section 235(b) of the Local Government Regulation 2012 (Regulation), Council resolve that the exception applies because of the specialised AND/OR confidential nature of the services that are sought and it would be impractical AND/OR disadvantageous to invite quotes OR tenders for the provision of the “HIVE” online Community Engagement Platform, which enables Council’s Shape Your Ipswich website.

B. That Council enter into a contractual arrangement (Council file reference number 12873 with Harvest Digital Planning Pty Ltd, at an approximate purchase price of $100,000.00 excluding GST over the entire term, being an initial term of one (1) year, with options for extension at the discretion of Council (as purchaser), of an additional two (2) X one (1) year terms.

AFFIRMATIVE NEGATIVE

Councillors: Councillors:

Madsen Nil

Milligan

Harding

Kunzelmann

The motion was put and carried.

3. Proposed Fees and Charges to apply from 1 July 2022

This is a report concerning the annual review of Ipswich City Council’s (Council) proposed commercial and cost recovery fees and charges, and the recommended pricing to commence with effect 1 July 2022.

RECOMMENDATION

Moved by Councillor Russell Milligan:

Seconded by Councillor Kate Kunzelmann:

That the proposed 2022-2023 Fees and Charges, as detailed in Attachment 1, be adopted with an effective date of 1 July 2022.

AFFIRMATIVE NEGATIVE

Councillors: Councillors:

Madsen Nil

Milligan

Harding

Kunzelmann

The motion was put and carried.

4. ExtenSion of membership to Audit and Risk Management Committee - final four year term

Dr Annette Quayle was appointed to the Audit and Risk Management Committee in 2018 for a four-year term with a further possible four-year extension. Dr Quayle has been a valued member of the Committee and adds experience and expertise to the Committee. The request is for Council to support the extension

RECOMMENDATION

Moved by Councillor Kate Kunzelmann:

Seconded by Councillor Russell Milligan:

That Council approve the final four-year extension of the membership of Dr Annette Quayle to the Audit and Risk Management Committee to end in March 2026.

AFFIRMATIVE NEGATIVE

Councillors: Councillors:

Madsen Nil

Milligan

Harding

Kunzelmann

The motion was put and carried.

NOTICES OF MOTION

Nil

MATTERS ARISING

Nil

PROCEDURAL MOTIONS AND FORMAL MATTERS

The meeting commenced at 9.30 am.

The meeting closed at 9.54 am.

Governance and Transparency Committee

Meeting Agenda

5 May

2022

Doc ID No: A8008148

ITEM: 2

SUBJECT: Quarter 3 - Operational Plan 2021-2022 Quarterly Performance

AUTHOR: Social Data Officer

DATE: 14 April 2022

Executive Summary

Recommendation/s

That the report be received and the contents noted.

RELATED PARTIES

There are no party matters associated with this report.

ifuture Theme

A Trusted and Leading Organisation

Purpose of Report/Background

The 2021-2022 Operational Plan was formally adopted by Council on 30 June 2021. Section 174 of the Local Government Regulation 2012 states the Chief Executive Officer must present to the local government a written assessment of progress towards implementation of the Operational Plan at a minimum of quarterly intervals.

An assessment of council’s progress during Q3, being 1 January to 31 March 2022, has been prepared from commentary provided by the responsible officers and is contained in Attachment 1. Council’s Finance Branch provides to council a separate report with high-level details on the financial performance. A full report of performance against the 2021-2022 Operational Plan will be included in council’s Annual Report and will be presented at the conclusion of the 2021-2022 financial year.

The Performance Branch (Coordination and Performance) recently implemented the Business Planning and Reporting Operating Model project that included an assessment of current maturity and to build on quality of good business practices for the new Corporate Plan (iFuture).

With the iFuture launch on 1 July 2021, and a new Annual Plan format, the timing provided an opportunity to review the current quarterly reporting model to improve on consistency and quality of information with a change in approach to data collection and reporting style.

This included the amendment of status options to show deliverable status alongside budget status for the quarter and changes to reporting at risk items. To enhance customer readability of the Q3 report, the summary for items showing risk has been incorporated into the quarterly update comment for the relevant deliverables, and there is no separate Risk Report included as an attachment with the quarterly reports for 2021-2022 financial year.

The table below provides a snapshot of the current positioning of each deliverable against the stated target. To clarify the progress statements used in the table, please refer to the legend also included below:

Deliverable status	Number	%
On Track	43	76%
Needs Attention	6	11%
At Risk	0	0%
Other	5	9%
Complete	2	4%
Total	56	100%

Deliverable status legend
On Track	This status represents activity which is delivering as planned.
Needs Attention	This status represents activity which is no longer delivering as scheduled however is not yet At Risk.
At Risk	This status represents activity which is at risk of not being completed by EOFY or not achieving its targeted outcome.
Other	This status represents activity which is outside the standard status indicators. Reasons for use of this status include items that are amended, discontinued, scheduled to start in a later quarter, deferred, may have no available reporting.
Complete	This status represents activity which has been completed and has achieved the targeted outcome.

Budget status	Number	%
On Track	33	59%
Under / Over	13	23%
Other	8	14%
No Budget Allocated	2	4%
Total	56	100%

Budget status legend
On Track	This status represents budget activity that is delivering as planned.
Under / Over	This status represents budget activity that is delivering over or under planned budget allocation.
Other	This status represents activity which is outside the standard status indicators. Reasons for this status may include items of expenditure which are completed, delayed, deferred or future scheduled.
No Budget Allocated	This status represents activity which has no budget allocation.

Section 174 of the Local Government Regulation 2012 states that a local government may, by resolution, amend its annual operational plan at any time before the end of the financial year.

For ongoing reporting purposes, the amendments to the Operational Plan as a result of changes in quarter 1 are listed below.

The item listed as Continue planning for the new Planning Scheme and Local Government Infrastructure Plan has been split into two independent projects and now appears as:

Continue planning for the Ipswich Planning Scheme

Continue planning for the Local Government Infrastructure Plan.

The project listed as Effective Asset Management Plan – preparation for implementation phase is a new addition due to its significance to council operations.

There were no amendments made in quarter 2 or quarter 3.

Legal/Policy Basis

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

Local Government Regulation 2012

RISK MANAGEMENT IMPLICATIONS

Section 174 of the Local Government Regulation 2012 states that the Chief Executive Officer must present to the local government a written assessment of progress towards implementation of the Operational Plan at a minimum of quarterly intervals.

The highest risk is political/reputational should council fail to meet the mandated deadline for adoption of the Operational Plan Quarterly Report.

HUMAN RIGHTS IMPLICATIONS

HUMAN RIGHTS IMPACTS

RECEIVE AND NOTE REPORT

The Recommendation states that the report be received and the contents noted. The decision to receive and note the report does not limit human rights. Therefore, the decision is compatible with human rights.

Financial/RESOURCE IMPLICATIONS

There are no financial or resource implications for this report.

COMMUNITY and OTHER CONSULTATION

The content of this report has been developed from commentary provided by each department. This information provides an update on council’s progress towards achieving the objectives of council’s Operational Plan 2021-2022 and presents notable achievements during Q3.

Conclusion

This is a report concerning an assessment of Ipswich City Council’s progress towards implementation of the Operational Plan 2021-2022 and notable achievements that have occurred during the quarter. Q3 data as provided by departmental representatives is presented. A full assessment of the Operational Plan 2021-2022 will be included in council’s Annual Report that will be presented later in the year.

Attachments and Confidential Background Papers

1.	Q3 Operational Plan ⇩

Josh Mallet

Social Data Officer

I concur with the recommendations contained in this report.

Anna Payne

Acting Manager, Performance

I concur with the recommendations contained in this report.

Maree Walker

Acting General Manager Coordination and Performance

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

Governance and Transparency Committee

Meeting Agenda

5 May

2022

Doc ID No: A8013440

ITEM: 3

SUBJECT: Quarterly Reports to the Department of State Development, Infrastructure, Local Government and Planning

AUTHOR: Acting Manager, Performance

DATE: 20 April 2022

Executive Summary

Recommendation/s

That Committee endorse the draft letter and quarterly performance reports (January – March 2022) set out in Attachments 2-7.

RELATED PARTIES

There is no potential, perceived or actual conflicts of interest to disclose.

ifuture Theme

A Trusted and Leading Organisation

Purpose of Report/Background

The Director-General, DSDILGP wrote to Mayor Harding on 6 April 2021 and advised of his decision to not reappoint Mr Steve Greenwood as Advisor to Ipswich City Council for a further period. Mr Greenwood had been appointed to the role of Advisor for an initial period of twelve (12) months. The initial period ended on 12 April 2021.

However, under section 115 of the Local Government Act 2009, the Director-General, DSDILGP, Mr Damien Walker, requested that up to 30 June 2022, the Council provides him with quarterly reports on the performance of Council including the following matters:

· progress of the People and Culture Strategic Plan developed during Mr Greg Chemello’s period of interim administration.

· implementation of any outstanding issues from Mr Chemello’s final Vision 2020 which he understood to be: Procurement; ICT and Knowledge Management; and People and Culture.

· results from the Council’s Pulse staff survey results and any actions being implemented to address issues of concern identified through that survey.

· any significant changes to governance policies and processes and the rationale for such changes.

· any significant issues relating to senior staff changes; and

· any issues which may identify corruption risks.

The progress reports have been collated for the period of January to March 2022 for each item identified above (Attachments 3-7). These progress reports have been adopted as the standard for the series of quarterly reports to the Director-General, DSDILGP up until 30 June 2022.

Legal/Policy Basis

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

Local Government Act 2009

Local Government Regulation 2012

Public Sector Ethics Act 2004

Industrial Relations Act 2016

Crime and Corruption Act 2001

RISK MANAGEMENT IMPLICATIONS

There has been significant investment in good corporate governance and risk management both during the period of Interim Administration of Ipswich City Council and since the return of the elected representatives in April 2020. Council has implemented an Enterprise Risk Management Framework and has developed and is implementing a Five-Year Risk Maturity Roadmap to continue to mature its approach to identifying and managing risks.

HUMAN RIGHTS IMPLICATIONS

HUMAN RIGHTS IMPACTS

NON-DISCRETIONARY DECISION

The Recommendation of this report arises from a requirement under section 115 of the Local Government Act 2009 that allows for the monitoring of a local government’s performance and do not impact individuals. Therefore, the decision will not be unlawful under the Human Rights Act 2019.

Financial/RESOURCE IMPLICATIONS

The collation of the quarterly performance reports has been undertaken by the Enterprise Program Management Office (ePMO) of Council within the existing resource allocation and has been given priority over other responsibilities given the legislative obligation. All future performance reports will continue to be coordinated by the ePMO up until 30 June 2022.

COMMUNITY and OTHER CONSULTATION

The Performance Reports have been coordinated by the ePMO with input and content verified by the relevant officers identified in the reports. Consultation on the draft letter and progress reports has also occurred with the Office of the Chief Executive Officer and the Officer of the Mayor.

Conclusion

The Director-General, DSDILGP has requested council provide a series of quarterly reports up until 30 June 2022. The proposed cover letter and January – March 2022 quarterly reports are set out in Attachments 2 to 7.

Attachments and Confidential Background Papers

1.	Request from Director-General regarding Media and Corporate Communications Policy ⇩
2.	DG Letter - Draft Cover Letter, January to March 2022 ⇩
3.	DG Letter - Project Status - People and Culture, January to March 2022 ⇩
4.	DG Letter - Project Status - Information Knowledge Management, January to March 2022 ⇩
5.	DG Letter - Project Status - Policy and Procedure Change, January to March 2022 ⇩
6.	DG Letter - Project Status - Fraud and Corruption Control, January to March 2022 ⇩
7.	DG Letter - Project Status - ICT Strategy, January to March 2022 ⇩

Anna Payne

Acting Manager, Performance

I concur with the recommendations contained in this report.

Maree Walker

Acting General Manager Coordination and Performance

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

Governance and Transparency Committee

Meeting Agenda

5 May

2022

Doc ID No: A8014941

ITEM: 4

SUBJECT: Appointment of Urban Utilities Board Member

AUTHOR: Project Manager

DATE: 22 April 2022

Executive Summary

This is a report concerning the proposed appointment of Gerard Pender to the Board of Urban Utilities.

Recommendation/s

A. That Council endorse the appointment of Gerard Pender as a Board member of Urban Utilities, effective from 1 July 2022, for a term of three (3) years, expiring 30 June 2025.

RELATED PARTIES

The Central SEQ Distributor-Retailer Authority trading as Urban Utilities and its five Participating Local Governments:

· Brisbane City Council

· Ipswich City Council

· Lockyer Valley Regional Council

· Scenic Rim Regional Council

· Somerset Regional Council

ifuture Theme

Vibrant and Growing

Purpose of Report/Background

The South-East Queensland Water (Distribution and Retail Restructuring) Act 2009 required the Central SEQ Distributor-Retailer Authority (trading as Urban Utilities) to enter into a Participation Agreement (the Agreement) with its five shareholding local governments (the Participants). Urban Utilities is governed by an independent Board with eight independent directors appointed by the Participants. The Agreement details amongst other matters, the Board’s role, its composition and the process for appointing and reappointing Board directors. The Participation Rights were determined on each Participant’s contributed regulatory asset base at the time of Urban Utilities’ creation in 2010 are detailed below:

Participant	Participation Right %	Participation Type #
Brisbane City Council	85.007%	Majority
Ipswich City Council	12.222%	Minority
Scenic Rim Regional Council	1.042%	Minority
Lockyer Valley Regional Council	0.903%	Minority
Somerset Regional Council	0.826%	Minority

# Majority Participant means a Participant holding more than 50% of Participation Rights and a Minority Participant means a Participant other than a Majority Participant.

Under the Agreement, a Special Majority of Participants in favour of a decision is defined as:

a) if there is a Majority Participant:

i. The Majority Participant; and

ii. 50% of the Minority Participants; or

b) If there is no Majority Participant, 75% of the Minority Participants.

A Special Majority of Participants is required for a director’s appointment. At a Special Meeting of Participants in 2016, a process for future appointments/reappointments to the Board of Urban Utilities was agreed (refer Confidential Attachment 1).

Council received correspondence from Urban Utilities dated 11 April 2022 (refer Confidential Attachment 2) regarding a proposed appointment to the Board to replace Kathy Hirschfeld who retired on 31 December 2021. Urban Utilities provided have the curriculum vitae for the proposed candidate (refer Confidential Attachment 3). To maintain the Board’s membership at the required level and skill set moving forward, Council is required to consider the following:

· Appoint Gerard Pender, effective from 1 July 2022, for a term of three (3) years, expiring 30 June 2025.

Urban Utilities have confirmed that Brisbane City Council and Lockyer Valley, Scenic Rim and Somerset Regional Councils will also be considering this appointment. The Instrument of Appointment to be executed by each of the Participants is included for reference as Confidential Attachment 4. Confidential Attachment 5 details the current Urban Utilities Board composition, each directors’ tenure and the proposed appointment and subsequent expiry date.

Legal/Policy Basis

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

South-East Queensland Water (Distribution and Retail Restructuring) Act 2009 (Qld)

RISK MANAGEMENT IMPLICATIONS

There are no risk management implications associated with this report.

HUMAN RIGHTS IMPLICATIONS

HUMAN RIGHTS IMPACTS
OTHER DECISION
(a) What is the Act/Decision being made?	Recommendation A relates to Council endorsing the appointment of a director to the Board of Urban Utilities.
(b) What human rights are affected?	No human rights are affected by this decision.
(c) How are the human rights limited?	Not applicable.
(d) Is there a good reason for limiting the relevant rights? Is the limitation fair and reasonable?	Not applicable.
(e) Conclusion	The decision is consistent with human rights.

Financial/RESOURCE IMPLICATIONS

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

COMMUNITY and OTHER CONSULTATION

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

Conclusion

Urban Utilities have proposed Gerard Pender be appointed as a director for a three-year term commencing 1 July 2022.

Attachments and Confidential Background Papers

	CONFIDENTIAL
1.	Urban Utilities Board Appointment Protocol
2.	Urban Utilities Correspondence 11.4.22 - re Board Appointment
3.	Gerard Pender CV
5.	Instrument of Appointment
4.	Urban Utilities Board Membership Status 5.5.22

Greg Thomas

Project Manager

I concur with the recommendations contained in this report.

Graeme Martin

Acting General Manager, Infrastructure and Environment

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

Governance and Transparency Committee

Meeting Agenda

5 May

2022

Doc ID No: A7999010

ITEM: 5

SUBJECT: Procurement: 18397 Supply & Delivery of Six (6) Waste Collection / Compaction Trucks

AUTHOR: Category Specialist

DATE: 11 April 2022

Executive Summary

This is a report concerning the recommendation to award a contract for the supply and delivery of six (6) side loading waste collection and compaction trucks to be utilised by Ipswich Waste Services.

RECOMMENDATION

A. That pursuant to Section 234 of the Local Government Regulation 2012 (Regulation), Council utilise LGA Arrangement NPN04.13 for the supply of Trucks (Cab Chassis) by Local Buy Pty Ltd, for the provision of the supply and delivery of six (6) side loading waste collection and compaction trucks (Council file reference number 18397), with Volvo Group Australia Pty Ltd (T/A Volvo Commercial Vehicles) (Supplier) who is a party to the LGA Arrangement.

B. That under the LGA Arrangement with the Supplier, the approximate purchase price is $2,869,220.00 excluding GST over the entire term, the end date of the initial term being 30 September 2023, with no current options for extension.

C. That Council may enter into ancillary contractual arrangements with the Supplier, as allowed for by the LGA Arrangement.

RELATED PARTIES

No conflict-of-interest declarations in relation to the proposed recommendations have been made during this procurement activity. The related party for the supply and delivery of eighteen (18) side loading waste collection and compaction trucks is Volvo Group Australia Pty Ltd (T/A Volvo Commercial Vehicles - ABN 27 000 761 259).

ifuture Theme

Natural and Sustainable

Purpose of Report/Background

The purpose of this report is to seek Council endorsement of the recommendations. An approved Strategy and Evaluation Plan (STEP) established the strategy to take the Request for Quotation (RFQ) to the market, further details on the strategy for this procurement are available in Confidential Attachment 2: 18397 – Strategy and Evaluation Plan (STEP).

Council currently has twenty-four (24) side lift waste collection and compaction trucks. Based on a 72-month lifespan, these collections (side lift) and compaction trucks are reaching their operational lifespan limit. Recent condition assessments on the current fleet of side lift waste trucks have deemed some of these units to be in poor condition.

Resultant from RFQ 16421 Council currently has eighteen (18) Volvo cab-chassis trucks (with Superior Pak compaction bodies) on order. Council released RFQ 16421 for the Supply & Delivery of Waste Collection / Compaction Trucks, to all Pre-Qualified Suppliers under Contract number NPN04.13, via VendorPanel (VP254349) on Tuesday 20 July 2021 with a closing date of Tuesday 17 August 2021 at 02:00 PM. Contract number NPN04.13 is for the Supply of New Trucks to Australian Local Governments.

Under RFQ 16421, Council Officers thoroughly evaluated eight vehicle offerings. A Recommendation to Award to Volvo Group Australia Pty Ltd was prepared by the evaluation panel and endorsed by the Growth Infrastructure and Waste Committee 4 November 2021. Council leveraged that evaluation for this procurement for the replacement of the last six (6) remaining assets from the current fleet. Benefits of this strategy are further detailed in section 2.2 of Confidential Attachment 1: 18397 – Recommendation to Award.

Legal/Policy Basis

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

Local Government Regulation 2012

RISK MANAGEMENT IMPLICATIONS

In the absence of ordered / replacement side lift waste collection and compaction trucks, the following risks may present:

· Potential unreliability of an aging fleet of kerbside (side lift) waste collection and compaction vehicles,

· Potential unavailability of kerbside (side lift) waste collection and compaction vehicles, resulting in missed residential waste collection services or increased missed bin service rate on high demand days of service,

· Potential for health and regulatory implications if there is an inability of Council to fulfill, in full, its legal requirements to collect and manage waste.

HUMAN RIGHTS IMPLICATIONS

HUMAN RIGHTS IMPACTS
OTHER DECISION
(a) What is the Act/Decision being made?	The decision to enter into a contractual arrangement.
(b) What human rights are affected?	No human rights are affected as the contract is with a Proprietary Limited Company.
(c) How are the human rights limited?	Not applicable.
(d) Is there a good reason for limiting the relevant rights? Is the limitation fair and reasonable?	Not applicable.
(e) Conclusion	The decision is consistent with human rights.

Financial/RESOURCE IMPLICATIONS

The financial implications (cost to Council to procure the goods / vehicles) for the intended order of six (6) side load waste collection and compaction trucks is $2,869,220.00 excluding GST. Budget / funding allocation has been confirmed within the Infrastructure and Environment’s Waste Truck Capital Replacement program, it is likely the delivery of these assets will be either the end of financial year 2022-2023 or start of financial year 2023-2024.

In reference to resource implications, it is important to note the effects of COVID-19 have had and continue to significantly affect the supply chain specific to the supply of trucks to the Australian market. Lead times are considerable (potentially fifteen (15) months) however business continuity is maintained due to the availability and utilisation of current assets, until the supply and delivery of ordered replacement assets.

COMMUNITY and OTHER CONSULTATION

There was no community consultation. Significant internal stakeholder consultation occurred at various stages throughout the procurement involving multiple Branches and Departments across Council as noted in the attachment.

Conclusion

It was determined by the Evaluation Panel that the proposed vehicles (six (6) Volvo cab-chassis with Superior Pak compaction bodies) are consistent with Volvo Group Australia Pty Ltd previous submission (RFQ16421) noting the price increase as detailed in section 3 of Confidential Attachment 1: 18397 – Recommendation to Award.

The evaluation panel unanimously recommend VOLVO GROUP AUSTRALIA PTY LTD, as the successful offeror for this RFQ, and that the supply and delivery contract for these Volvo cab-chassis (with Superior Pak bodies) should be awarded to VOLVO GROUP AUSTRALIA PTY LTD.

Attachments and Confidential Background Papers

	CONFIDENTIAL
1.	18397 - Recommendation to Award
2.	18397 - Strategy and Evaluation Plan (STEP)

Cory Cavanagh

Category Specialist

I concur with the recommendations contained in this report.

Juliana Jarvis

Goods and Services Category Manager

I concur with the recommendations contained in this report.

Richard White

Manager, Procurement

I concur with the recommendations contained in this report.

David McAlister

Resource Recovery Manager

I concur with the recommendations contained in this report.

Brett McGrath

Manager, Asset Services

I concur with the recommendations contained in this report.

Graeme Martin

Manager, Capital Program Delivery

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