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Vision Inspired by lifestyle. Driven by Opportunity

697

Adopted Report of the

Engineering Water & Transport Committee Meeting

held

Tuesday, 28 April 2015 at

09:00 am

Gold Coast City Council Chambers 135 Bundall Road Surfers Paradise

697th Council Meeting 5 May 2015 2 Engineering Water & Transport Committee Meeting 28 April 2015 Adopted Report

Index 697 Adopted Report

Engineering Water & Transport Committee Meeting Tuesday, 28 April 2015

9.00am

Item Direct. File Page Subject

1 ES LG115/1294/01/2015(P1) 4 Engineering Services Action List And Forward Planning Schedule

2 ES FN334/375/01(P12) 6 2014-15 Capital Works Program – Approvals And Notation

3 ES FN334/375/02(P31) 33 2014-15 Local Area Works Program – Additions

4# ES WF70/16/-(P2) 39 Grand Canal Dredging

5 ES TT1017/113/12(P3) 44 Cost Sharing Agreement TMR And CGC Maudsland Road

6 ES RD109320/46/01/01(P1) 51 Christensen Road South, Stapylton – Revesting

7 GCW CM787/788/06/01(P1) 65 Gold Coast Water Action List And Forward Planning Schedule

8 GCW WSS1125/1227/02(P1) 67 Gold Coast Water Annual Register Of Council Directions

9 GCW FN334/252/15(P6) 69 Gold Coast Water Financial Performance As At 28 February 2015

Closed Session

10 GCW WSS382/343/02/06(P1) 93 Stapylton Sewerage Catchment Servicing Strategy

Open Session

General Business

11 ES FN334/375/02(P31) 102 Street Furniture And Landscape Upgrades For Chirn Park City Making Places Project

#Officer’s Recommendation changed at Committee KEY: OCEO - Office of the Chief Executive Officer CMS - Community Services GCW - Gold Coast Water EDMP - Economic Development & Major Projects OS - Organisational Services ES - Engineering Services PE - Planning & Environment

697th Council Meeting 5 May 2015 3 Engineering Water & Transport Committee Meeting 28 April 2015 Adopted Report ADOPTION BY COUNCIL 5 MAY 2015 ADOPTION OF THE ENGINEERING, WATER & TRANSPORT COMMITTEE REPORT RESOLUTION G15.0505.010 Moved Cr Taylor Seconded Cr Tozer That the Report of the Engineering, Water & Transport Committee Meeting of Tuesday, 28 April 2015, covered by Recommendations numbered EWT15.0428.001 to EWT15.0428.011, be adopted.

CARRIED ATTENDANCE Cr P A Taylor Chairperson Cr D M Crichlow Cr D I McDonald Cr D Gates Cr T C Gilmore Cr W M A Owen-Jones Cr C M Caldwell Cr M Grummitt (Visitor) Mr A Twine Director Engineering Services Mr R Went Manager Operational Strategy, Gold Coast Water - Proxy for P Heaton APOLOGIES / LEAVE OF ABSENCE PROCEDURAL MOTION moved Cr Caldwell seconded Cr McDonald That the apologies for Cr Robbins be noted.

CARRIED PRESENTATIONS Nil


ITEM 1 ENGINEERING SERVICES ENGINEERING SERVICES ACTION LIST AND FORWARD PLANNING SCHEDULE LG115/1294/01/2015(P1)

ENGINEERING, WATER & TRANSPORT COMMITTEE

Item Action Officer Action/Previous Resolution

Engineering, Water & Transport Committee Meeting (all meetings)

Action List and Forward Planning Schedule Alton Twine – Director Engineering Services

Standing Item

2014-15 Capital Works Program - Approvals & Notations

YSK Perera - Projects Report to every meeting round.

2014-15 Local Area Works Program – Additions YSK Perera - Projects Report to every meeting round. 2014-15 Local Area Works Program - Minor Works YSK Perera - Projects Report to every meeting round.

(698) City Infrastructure & Water Committee Meeting – 7 May 2015

Countdown Timers at Traffic Signals

Brigid Kudzius – Transport & Traffic

Update to Council on proposed installation of pedestrian countdown timers at traffic signals

Transport System Health Check Report Robert Mitchell - Transport & Traffic

Report to Council on metrics and performance of the City's transport system.

Coastal Program Update – Palm Beach Shoreline Project and Seawalls

Mark Ash – Assets Report completed. With DES for review. RD 26/3/15

(699) City Infrastructure & Water Committee Meeting – 21 May 2015

Public Urination Problems within the Surfers Paradise Precinct

Jim Bowden – Assets Report to be presented.

City Infrastructure & Water Committee Meeting – July 2015

Release Draft Surf Management Plan for Public Consultation Purpose

Tim Evans - Assets Place Draft Surf Management Plan out for a period of Public Consultation.


ITEM 1 (Continued) ENGINEERING SERVICES ACTION LIST AND FORWARD PLANNING SCHEDULE LG115/1294/01/2015(P1) Item Action Officer Action/Previous Resolution

City Infrastructure & Water Committee Meeting – August 2015

Trial Commercial Use of Various Council Boating Facilities (Ex ES13.0530.004/G13.0611.014)

John Zawadzki – Assets (5) That a report be presented to Council in August 2015, via the Engineering Water & Transport Committee, on a proposed fee structure for commercial use to apply from 1 September 2015.

City Infrastructure & Water Committee Meeting – November 2015

Adopt Final Surf Management Plan Tim Evans - Assets To consider public comment and to adopt a Final Surf Management Plan

RECOMMENDATION It is recommended that Council resolves as follows: That the Engineering Services Directorate Action List and Forward Planning Schedule for the Engineering, Water & Transport Committee be noted.

Authorised by: Alton Twine iSPOT#47189512 Director Engineering Services COMMITTEE RECOMMENDATION EWT15.0428.001 moved Cr Caldwell seconded Cr McDonald That the Engineering Services Directorate Action List and Forward Planning Schedule for the Engineering, Water & Transport Committee be noted.

CARRIED


ITEM 2 PROJECTS BRANCH 2014-15 CAPITAL WORKS PROGRAM – APPROVALS AND NOTATION FN334/375/01(P12) Refer 24 page attachment 1 BASIS FOR CONFIDENTIALITY

1.1 I recommend that Attachment 2.2 of this report be considered in Closed Session pursuant to section 275 (1) of the Local Government Regulation 2012 for the reason that the matter involves the local government’s budget.

1.2 I recommend that Attachment 2.2 be deemed a confidential document in accordance

with sections 171 (3) and 200 (5) of the Local Government Act 2009 and that the documents remain confidential unless Council decides otherwise by resolution.

2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT To advise Council of projects that are issued for construction having final estimates within the preliminary allocation. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION Attachment 2.1 lists details of internal delivery documents which have been prepared for projects approved in the City’s 2014-15 Capital Works Program. The Attachment is presented for Council’s notation and approval and details projects under the preliminary funding allocation. Internal delivery documents are issued for construction as soon as they are available. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN These projects satisfy the following: 1.0 The best place to live and visit

1.4 We have fast, frequent and reliable public transport. We can get around the city easily and cheaply.

2.0 Prosperity built on a strong diverse economy 2.3 We have infrastructure that supports productivity and growth. We have connected and vibrant economic precincts.

3.0 People contribute to a strong community spirit

3.6 We are an active community. We enjoy the city and its enviable climate.


ITEM 2 (Continued) 2014-15 CAPITAL WORKS PROGRAM – APPROVALS AND NOTATION FN334/375/01(P12) 7 COMMONWEALTH GAMES IMPACT Not Applicable. 8 FUNDING AND RESOURCING REQUIREMENTS Funds are available within the relevant budgets to cater for construction of the works listed in this report. 9 RISK MANAGEMENT Engineering Services’ project teams will mitigate risk through project development and delivery phases in accordance with the risk management procedure 6-3 which is aligned with the Risk Management Standards AS/NZS 31000:2009.

10 STATUTORY MATTERS Not Applicable. 11 COUNCIL POLICIES Not Applicable. 12 DELEGATIONS Not Applicable. 13 COORDINATION & CONSULTATION Name and Title of the Stakeholder Consulted

Directorate or Organisation

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

Mark Ash, Manager Assets Engineering Services Yes Cr D Gates Division 1 Councillor Cr W Owen-Jones Division 2 Councillor Cr M Grummitt Division 4 Councillor Cr T Gilmore Division 5 Councillor Cr AJD Bell Division 7 Councillor Cr R La Castra Division 8 Councillor Cr G Tozer Division 9 Councillor Cr P Taylor Division 10 Councillor Cr J Grew Division 11 Councillor Cr G Betts Division 12 Councillor Cr D McDonald Division 13 Councillor Cr C Robbins Division 14 Councillor

B Castelijn, Project Officer Engineering Services Yes


ITEM 2 (Continued) 2014-15 CAPITAL WORKS PROGRAM – APPROVALS AND NOTATION FN334/375/01(P12) Name and Title of the Stakeholder Consulted



M Jaric, Project Manager Engineering Services Yes S Joshi, Project Officer Engineering Services Yes G Miller, Senior Project Manager

Engineering Services Yes

M Monkman, Project Officer Engineering Services Yes S Hammill, Project Manager Engineering Services Yes T Lama, Senior Project Manager


B Darveniza, Project Manager Engineering Services Yes 14 STAKEHOLDER IMPACTS The community, ratepayers and visitors to the Gold Coast will benefit from the new and improved facilities funded from Whole of City or Local Area Works Programs as listed in Attachment 2.1. 15 TIMING Projects listed in this report are included in Construction Programs for implementation in conjunction with other priority works. 16 CONCLUSION Not Applicable.


ITEM 2 (Continued) 2014-15 CAPITAL WORKS PROGRAM – APPROVALS AND NOTATION FN334/375/01(P12) 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Attachment 2.2 be deemed a confidential document in accordance with sections

171 (3) and 200 (5) of the Local Government Act 2009 and that the attachment remain confidential unless Council decides otherwise by resolution.

2 That Council notes internal delivery documents listed in Attachment 2.1 for project

estimates within the preliminary allocation are issued for construction as soon as they are available.

Author: Authorised by: YSK Perera Alton Twine Executive Coordinator Transport and Local Area Works (LAW)

Director Engineering Services

7 April 2015 iSPOT: # 48407639 & Att: # 48407753 & # 48876727 COMMITTEE RECOMMENDATION EWT15.0428.002 moved Cr Caldwell seconded Cr McDonald 1 That Attachment 2.2 be deemed a confidential document in accordance with

sections 171 (3) and 200 (5) of the Local Government Act 2009 and that the attachment remain confidential unless Council decides otherwise by resolution.

2 That Council notes internal delivery documents listed in Attachment 2.1 for

project estimates within the preliminary allocation are issued for construction as soon as they are available.

CARRIED


Attachment 2.1

ENGINEERING SERVICES – APPROVALS AND NOTATIONS

(Final Estimates within Preliminary Allocations - Documents Issued for Construction)

PROJECT MANAGER

DIV FUNDING SOURCE

PROJ NO

LOCATION DESCRIPTION PRELIMINARY ALLOCATION $

FINAL ESTIMATE $

B. Castelijn 1 LAW 25639 Depot Road, Pimpama Remove existing seat and install a solar powered bus shelter on the existing concrete waiting area 90m north of Pimpama Jacobs Well Road, eastern side.

13,900 13,900

M. Jaric 1 WOC 50221 Stanmore Road, Yatala Major Roadworks. Widen 83m of the existing left lane and 67m of the right lane on the northern side of the existing roundabout between the railway line and the Old Pacific Highway. The works include the installation of stormwater pipes and headwalls and street lighting, the construction of 2 x gully pits, 2 x manholes, 145m of kerb, 88m x 2.5m wide concrete path and 384m² of road pavement with an asphalt wearing surface.

435,000 435,000

S. Joshi 4 LAW 25622 Taylor Street, Biggera Waters

Construct 74m x 1.5m wide concrete path. Reconstruct 2 x pedestrian access ramps and a total of 116m² of driveways from Marine Parade to Back Street, northern side.

45,000 43,000

B. Castelijn 5 LAW 25627 McKenzie Drive, Highland Park

Remove the bus stop seat and upgrade the existing bus stop by constructing an additional 10m² concrete waiting area and installing a solar powered bus stop shelter adjacent to #17.

22,500 20,900

G. Miller 5 WOC 03903 Tuggeranong Avenue, Pacific Pines

Disability access. Construct 2 x pedestrian access ramps and 16m x 2m wide concrete path north of the roundabout with Victoria Avenue.

33,800 33,800


ENGINEERING SERVICES – APPROVALS AND NOTATIONS (Final Estimates within Preliminary Allocations -

Documents Issued for Construction) PROJECT MANAGER

DIV FUNDING SOURCE

PROJ NO


FINAL ESTIMATE $

Universal Street, Oxenford

Construct 2 x pedestrian access ramps and 10m x 2m wide concrete path including 12m² of concrete infill for the pedestrian access through the existing traffic island at the intersection with Binstead Way.

M. Monkman 5 WOC 04028 Archipelago Street / Hotham Street / Penrhyn Street, Pacific Pines

Disability access. Construct 2 x pedestrian access ramps and 3 x pedestrian accesses through the existing traffic islands including 40m² of concrete infill. Reconstruct 6 x pedestrian access ramps and 27m x 2m wide concrete path to the four legs of the roundabout.

59,000 59,000

M. Jaric 5 WOC 03613 Yarrimbah Drive, Nerang

Road reconstruction. Yalkuri Drive to Yarrowee Drive. Reconstruct 9,560m² of pavement with an asphalt wearing surface including 9,560m of underlying two-coat seal and the installation of 13 x bike safe gully grates.

940,000 940,000

B. Castelijn 5 WOC and LAW

04049 Archipelago Street, Pacific Pines

Disability access. Construct 2 x pedestrian access ramps and access through the existing traffic island including 6m x 2m wide concrete path and the installation of 10m of barrier fencing. Funding Summary WOC $13,000 LAW $1,000

14,000 14,000

G. Miller 7 LAW 25482 Lambros Drive, Construct 406m x 1.5m wide concreted path 147,000 147,000




DIV FUNDING SOURCE

PROJ NO


FINAL ESTIMATE $

Benowa including the reconstruction of 8 x pedestrian access ramps and a total of 180m² of concrete driveways and the adjustment of 7 x service authority assets from Benowa Road to Maryann Street, east side.

M. Monkman 8 WOC 50237 Nerang Broadbeach Road, Nerang

Bus stop upgrade. Demolish and remove the existing seat and concrete slab. Construct a 28m² concrete waiting area and 6m x 1.5m wide concrete path. Reconstruct 10m of barrier kerb and install a solar powered bus shelter adjacent to #40.

67,000 67,000

G. Miller 10 LAW 25637 Surf Parade, Broadbeach

Provide vehicle access through the existing island between Victoria Avenue and Charles Avenue adjacent to the Sofitel entrance. The work includes 14m² x 200mm thick concrete infill, 11m of barrier kerb and 2 x stainless steel removable bollards.

13,500 13,500

B. Castelijn 11 WOC 03852 Robina Town Centre Drive, Robina

Disability access. Install 22m x 0.6m wide tactiles including saw-cutting and traffic control at the entry to the Robina Town Centre adjacent to the post office.

7,800 7,800

S. Hammill 13 WOC 04045 The Esplanade, Palm Beach

Beaches and Waterways The construction of approximately 123m of seawall between Twenty Seventh Avenue the rear of #1477 Gold Coast Highway. Stage 1 works Construction of the seawall

Stage 1, 2014-15 $600,000




DIV FUNDING SOURCE

PROJ NO


FINAL ESTIMATE $

Stage 2 works All pavement and restoration activities The full scope of works includes the excavation of 5,600m³ of sand, the placement of 2,464m³ of rock, the placement of 2,337m² of geo-fabric and dewatering. The reconstruction of 627m² of the road pavement with an asphalt wearing surface, the construction of 246m of edge restraint, 70m² of concrete driveways and 66m of kerb. The installation of 317m of subsurface drains and 360m of dune fencing. The replacement of the beach shower and the adjustment of service authority assets.

Stage 2, 2015-16

$496,000 (Proposed future

funding)

Total = $1,096,000

$1,096,000

T. Lama 14 WOC 03514 Crest Drive, Currumbin Stormwater drainage catchment facility. Carryout 25m of pipe anchoring to an exposed 300mm diameter stormwater pipe located on a steep slope covered with dense native trees between #23 and #53.

49,000 49,000

M. Jaric 14 WOC 03979 Griffith Street, Coolangatta

Road reconstruction. McLean Street to Clarke Street. Remove 6,300m² of pavement wearing surface at varying depths and place 2,220t of asphalt pavement including 6,300m of underlying two-coat seal and the adjustment of service authority assets.

763,000 763,000

B. Darvenzia 2, 5,

WOC 03916

Stormwater drainage catchment facility.

151,000 149,000




DIV FUNDING SOURCE

PROJ NO


FINAL ESTIMATE $

9, 10, 11, 12, 13 & 14

Helensvale Road, Helensvale Intersection of Bermuda and Rudd Street, Broadbeach Waters Regency Place, Mudgeeraba Bermuda Street, Burleigh Waters

Upgrade of stormwater inlet structures across the City. Break up and remove existing 450 dia. concrete headwall. Install new 525 diameter (dia) precast headwall on 450 dia pipe. Reshape, reinstate, topsoil & turf to existing ground headwall to match existing. Install 1 x log barrier fencing posts & rails and Install new safety grate (525 dia headwall). Break up and remove existing 450 dia. concrete headwall. Install new 450 dia precast headwall on 375 dia pipe. Reshape, reinstate, topsoil and turf to existing ground headwall to match existing and Install new safety grate (450 dia headwall). Break up and remove existing 450 dia. concrete headwall. Install new 525 dia precast headwall on 450 dia pipe. Reshape, reinstate, topsoil and turf to existing ground headwall to match existing and Install new safety grate (525 dia headwall). Break up and remove existing 450 dia. concrete headwall. Install new 450 dia precast headwall on 375 dia pipe. Reshape, reinstate, topsoil and turf to




DIV FUNDING SOURCE

PROJ NO


FINAL ESTIMATE $

Reedy Creek Road, Varsity Lakes West Burleigh Road, Burleigh Heads Banksiadale Close, Elanora

existing ground headwall to match existing and Install new safety grate (450 dia headwall). Break up and remove existing 450 dia. concrete headwall. Install new 450 dia precast headwall on 375 dia pipe. Reshape, reinstate, topsoil and turf to existing ground headwall to match existing and Install new safety grate (450 dia headwall). Break up and remove existing 375 dia. concrete headwall. Install new 450 dia precast headwall on 375 dia pipe. Reshape, reinstate, topsoil and turf to existing ground headwall to match existing and Install new safety grate (450 dia headwall). Break up and remove existing 525 dia. concrete headwall. Install new 600 dia precast headwall on 525 dia pipe. Supply & place Concrete N25 shotcrete including SL71 reinforcement to batter adjacent to newly installed headwall. Reshape, reinstate, topsoil and turf to existing ground headwall to match existing. Reinstate timber post and rail fence (in Council Park Reserve). Survey of existing property boundaries prior to works and Install new safety grate (600 dia headwall).




DIV FUNDING SOURCE

PROJ NO


FINAL ESTIMATE $

Bienvenue Drive, Currumbin Waters Aldgate Crescent, Pacific Pines

Break up and remove existing 375 dia. concrete headwall. Install new 450 dia precast headwall on 375 dia pipe. Reshape, reinstate, topsoil and turf to existing ground headwall to match existing. Install new safety grate (450 dia headwall). Install two 2000 x 1000 x 300mm deep reno mattress. Reshape rock open drain. Extend existing 1050 dia RCP, break up and remove existing headwall and re-profile batter. Install 2 x 1800 fence and lockable gate. Install new dome top cover and 4 x new safety grates. Install reinforced concrete base slab, roof slab, walls and access walkway and stairs.

iSPOT: # 48407753 Sufficient funds are available for construction of the above.


ITEM 3 PROJECTS BRANCH 2014-15 LOCAL AREA WORKS PROGRAM – ADDITIONS FN334/375/02(P31) Refer 3 page attachment 1 BASIS FOR CONFIDENTIALITY

1.1 I recommend that Attachment 3.2 of this report be considered in Closed Session pursuant to section 275 (1) of the Local Government Regulation 2012 for the reason that the matter involves the local government’s budget.

1.2 I recommend that Attachment 3.2 be deemed a confidential document in accordance

with sections 171 (3) and 200 (5) of the Local Government Act 2009 and that the documents remain confidential unless Council decides otherwise by resolution.

2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT The purpose of this report is for Council to approve additions to the 2014-15 Local Area Works Program as detailed in Attachment 3.1. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION Councillors in conjunction with City officers have suggested that the projects in Attachment 3.1 be added to the 2014-15 Local Area Works Program. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN These projects satisfy the following: 4.0 The best place to live and visit

1.4 We have fast, frequent and reliable public transport. We can get around the city easily and cheaply.

5.0 Prosperity built on a strong diverse economy 2.3 We have infrastructure that supports productivity and growth. We have connected and vibrant economic precincts.

6.0 People contribute to a strong community spirit

3.6 We are an active community. We enjoy the city and its enviable climate.

7 COMMONWEALTH GAMES IMPACT Not applicable.


ITEM 3 (Continued) 2013-14 LOCAL AREA WORKS PROGRAM – ADDITIONS FN334/375/02(P31)

Identify any GC2018 legacy impacts (positive or negative) this proposal will have on

the city or the community Contact the Commonwealth Games Unit to discuss if required 8 FUNDING AND RESOURCING REQUIREMENTS Funds are available within the various Local Area Works allocations to carry out the works as indicated in Attachment 3.1 within the 2014-15 financial year. Details of the additional annual operational/maintenance costs, estimated new/upgrade and renewal costs and estimated useful life of the new assets created are shown in Attachment 3.1. The new/upgrade cost is the cost to create or upgrade the asset. The renewal cost is the cost to renew the asset in today’s dollars and includes disposal costs and design costs as required at the end of the asset’s estimated useful life. The works proposed in this report can be maintained and operated adequately based on the current 10 year financial plan's growth factors and maintenance budgets. 9 RISK MANAGEMENT Engineering Services’ project teams will mitigate risk through project development and delivery phases in accordance with the risk management procedure 6-3 which is aligned with the Risk Management Standards AS/NZS 31000:2009.

10 STATUTORY MATTERS Not Applicable. 11 COUNCIL POLICIES Divisional Program Policy (iSPOT #22891397) which is currently under review. 12 DELEGATIONS Not Applicable. 13 COORDINATION & CONSULTATION Name and Title of the Stakeholder Consulted



Mark Ash, Manager Assets Engineering Services Yes Cr W Owen-Jones Division 2 Councillor Cr D McDonald Division 13 Councillor I Lockhart, Technical Officer Lighting


B Castelijn, Project Officer Engineering Services Yes D Bruen, Senior Project Manager



ITEM 3 (Continued) 2014-15 LOCAL AREA WORKS PROGRAM – ADDITIONS FN334/375/02(P31) 14 STAKEHOLDER IMPACTS The community, ratepayers and visitors to the Gold Coast will benefit from the new and improved facilities funded from the Local Area Works Program as listed in Attachment 3.1. 15 TIMING Projects listed with “TBA” will be added to the Local Area Works Program once formally approved by Council and included in Design/Construction Programs for implementation in conjunction with other priority works. 16 CONCLUSION The proposed additions to the Local Area Works and Services Program as suggested by divisional councillors in conjunction with City officers are listed in Attachment 3.1. It is recommended that Council approve the additions in order that they can be implemented as soon as practicable. 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Attachment 3.2 be deemed a confidential document in accordance with sections

171 (3) and 200 (5) of the Local Government Act 2009 and that the attachment remain confidential unless Council decides otherwise by resolution.

2 That the additions listed in Attachment 3.1 be approved for the 2014-15 Local Area

Works Program. Author: Authorised by: YSK Perera Alton Twine Executive Coordinator Transport and Local Area Works (LAW)

Director Engineering Services

7 April 2015 iSPOT:# 48407186 Att: # 48407352 & # 48876180 COMMITTEE RECOMMENDATION EWT15.0428.003 moved Cr Caldwell seconded Cr McDonald 1 That Attachment 3.2 be deemed a confidential document in accordance with

sections 171 (3) and 200 (5) of the Local Government Act 2009 and that the attachment remain confidential unless Council decides otherwise by resolution.

2 That the additions listed in Attachment 3.1 be approved for the 2014-15 Local

Area Works Program. CARRIED


Attachment 3.1

ENGINEERING SERVICES – ADDITIONS

Project

Manager

Div

Project

No

Location

Description

Proposed Local Area Works Allocation

New / Upgrade. Preliminary

Estimated Capital costs

$

Additional

Annual Operations & Maintenance

Costs $

Estimate

Useful Life Years

Future

Renewal Costs

I. Lockhart (CR248634) DEL1239

2 25643 Maui Crescent, Oxenford

Installation of a streetlight shield adjacent to #12.

162 N/A N/A N/A

B. Castelijn (CR244202)

2 25638 Cobb & Co Drive, Oxenford

Construct a 26m x 2m wide and 80m x 1.5m wide concrete path including 2 x pedestrian access ramps. The works are from Cobb & Co Park to the existing on Maudsland Drive, western side.

30,900 Minimal 50 30,900

D. Bruen (CR241846)

13 TBA Luzon Parade, Palm Beach

Demolish the existing traffic island and construct a new 14m traffic island with concrete infill including linemarking, signage and tactiles at the eastern side of the intersection with Sarawak Avenue.

14,800 Minimal 15 14,800

iSPOT:# 48407352


ITEM 4 ASSETS BRANCH GRAND CANAL DREDGING WF70/16/-(P2) Refer 1 page attachment 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT To present an update on dredging of the Grand Canal, Biggera Waters. 4 PREVIOUS RESOLUTIONS Ex Minute No. EWT15.0305.009: “That Engineering Services brings back to Committee a report on the history and future dredging schedule of the Grand Canal opposite Harbour Town.” 5 DISCUSSION On 17 March 2015 Council resolved that Engineering Services bring back to the Engineering Water and Transport Committee a report on the history and future dredging schedule of the Grand Canal opposite Harbour Town (refer ex Minute EWT15.0305.009). The Grand Canal is located within Biggera Waters between Biggera Creek and the Runaway Islands canal estate (refer to Attachment 4.1). The Grand Canal is bounded by Limetree Parade, Oxley Drive, Anchorage Way and Harbour Side Court. The first section of the Grand Canal was developed by Lewiac Pty Ltd in 1995 (approximately) and the canal was developed in stages over recent decades. There is some detached and higher density housing fronting the canal and some remaining areas of future developable land. Midway along the Grand Canal a channel has been constructed by developers to the west under Oxley Drive to establish access for vessels to the Harbour Quays estate. This channel was constructed along the existing flowpath / watercourse for the Biggera Creek floodplain catchment. Vessels leaving the Harbour Quays estate travelling under Oxley Drive can:

a) turn to the south to travel along Biggera Creek to the Broadwater at Land’s end; or b) turn to the north to travel through Runaway Island Canal Estate to the Broadwater

passing by the Runaway Bay Shopping Village. This is the preferred route due to better canal depths and higher bridge clearances.

Upstream land owners are concerned that the depth of water available within the Grand Canal restricts the size of vessels that can navigate the channel, particularly during low tide periods. There is also concern that additional dredging of the Grand Canal is necessary to mitigate flooding. The dredging of the Grand Canal has been the subject of numerous studies and Council reports. Information from these studies and reports includes: • the Grand Canal was constructed by developers


ITEM 4 (Continued) GRAND CANAL DREDGING WF70/16/-(P2) • the canal was designed at 76 m wide with a bed level of RL -2.460 m AHD • in the late 1990’s, the City de-silted the southern part of the canal (south from the

Harbour Quays Estate entrance) • in 2013, flood modelling confirmed that the existing siltation levels in the Grand Canal

creates a flood impact of 1-3 mm • additional dredging of the canal is not required for flood mitigation purposes. • the cost to dredge the canal to a design profile of -2.46 m AHD bed level across the

whole canal width to original design exceeds $2 Million (depending on the spoil disposal method used)

• a desktop survey of vessels in 2013 using the upper waterways in Biggera Waters showed that the majority of moored vessels are less than 12 m in length for which a canal depth of below -2.0m AHD and a navigation channel width of 14 m would be acceptable.

Proposed Service Level for Grand Canal Dredging The proposed level of maintenance dredging of the Grand Canal will maintain a 14 m wide navigation channel below -2.0 m AHD with 1:4 edge slopes located centrally within the canal. The proposed canal profile will be provided between the Harbour Quays Estate entrance north to Limetree Parade (refer Attachment 4.1). The proposed service level will commence late in 2015 and can be delivered within the allocation for dredging within SAP Function ES2550O006. The recommended pattern for dredging involves a dredging campaign once every six years at a cost of $60,000. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN City Vision and Gold Coast 2020 Our City Vision “Inspired by lifestyle. Driven by opportunity.” has three themes: place, prosperity and people. The Gold Coast 2020 plan is structure around these themes, and identifies what we need to do between now and 2020 to work towards the city vision. 1.1 Our city provides a choice of liveable places. We want to see by 2020 that we can choose diverse lifestyles and housing options from rural to city living including waterfront lifestyles. Key programs of work include dredging for appropriate waterways infrastructure and facilities for residents of waterfront neighbourhoods that will be measured as an ‘appealing environment’. We manage the city responsibly In supporting the delivery of Gold Coast 2020 we manage the city responsibly. Our stewardship of the city’s waterways provides value for money for ratepayers. Key programs of work will manage the maintenance, renewal and delivery of dredging programs for the City’s waterways through the Waterways Asset Management Plan and the forward Capital Works program. An appropriate plan for dredging of waterways will achieve short and long-term financial sustainability of the City through prudent financial management and ensuring value for money.


ITEM 4 (Continued) GRAND CANAL DREDGING WF70/16/-(P2) 7 COMMONWEALTH GAMES IMPACT The appeal of the Gold Coast’s distinctive waterfront character and lifestyles for waterfront living is of interest to those participating and watching the 2018 Commonwealth Games. 8 FUNDING AND RESOURCING REQUIREMENTS Adequate funding to undertake the proposed dredging service level for the Grand Canal is included within the allocation for tidal waterways operations within SAP Budget Centre ES2550O006 Tidal Waterways Operations. The 2014-15 allocation for dredging of City canals is $2,897,800 within cost centre 1003207 and the estimated cost of the proposed maintenance dredging is $60,000 per campaign (ie once every six years). 9 RISK MANAGEMENT The City’s Workplace, Health and Safety Policy Statement must be complied with and dredging maintenance risks will be managed through existing risk mitigation procedures within Engineering Services. 10 STATUTORY MATTERS The Coastal Protection and Management Act 1995 obliges local governments to provide maintenance services for canals within their area. Providing the recommended maintenance dredging for Grand Canal can proceed in 2015 within the existing approvals for City maintenance works. 11 COUNCIL POLICIES Not applicable. 12 DELEGATIONS Not Applicable. 13 COORDINATION & CONSULTATION Not Applicable. 14 STAKEHOLDER IMPACTS Waterfront Residents near Grand Canal The recommended maintenance dredging programs will provide a reasonable level of navigation access to canal front properties. 15 TIMING The proposed dredging for the Grand Canal will be undertaken once every six years with the initial dredging event scheduled for completion by December 2015.


ITEM 4 (Continued) GRAND CANAL DREDGING WF70/16/-(P2) 16 CONCLUSION Council resolved that a report be presented on the history and future dredging schedule of the Grand Canal (refer ex Minute EWT15.0305.009). There is concern that existing siltation levels within the Grand Canal restricts the size of vessels that can navigate to the Harbour Quays Estate and may contribute to local flooding. A Flood Study in 2013 showed that the siltation levels in the Grand Canal had minimal impact on flooding (1 to 3 mm). Dredging works for flood mitigation purposes are not warranted at this time. The proposed level of dredging service will maintain a 14 metre width navigation channel centrally located within the Grand Canal with 1:4 edge slopes to below -2.0m AHD. The proposed service level is to be delivered within the available allocation for dredging within Cost Centre 1003207 (Canal Dredging) within SAP budget ES2550O006 (Tidal Waterways Operations). It is envisaged that the Grand Canal will need to be dredged once every six years at a cost of $60,000 per campaign. 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Council notes the contents of this report.

Author: Authorised by: John Zawadzki Alton Twine Coastal Asset Engineer Director Engineering Services 24 March 2015 iSpot #48210000 v5

Changed recommendation COMMITTEE RECOMMENDATION EWT15.0428.004 moved Cr Gates seconded Cr McDonald That this Item be deferred until after the planning committee considers the new flood model, with a further report to City Infrastructure and Water Committee to include this information and the consultant’s report to be tabled by Cr Grummitt. CARRIED UNANIMOUSLY


Attachment 4.1 GRAND CANAL LOCALITY PLAN

LEGEND

Proposed Dredge Area


ITEM 5 TRANSPORT & TRAFFIC BRANCH COST SHARING AGREEMENT BETWEEN CITY OF GOLD COAST AND THE DEPARTMENT OF TRANSPORT AND MAIN ROADS TO CONSTRUCT A PATH ON MAUDSLAND ROAD, MAUDSLAND/OXENFORD TT1017/113/12(P3) Refer 1 page attachment 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT The purpose of this report is to seek Council endorsement to enter into a cost sharing agreement with The Department of Transport and Main Roads to construct a path on Maudsland Road (State-controlled road) between Riverstone Crossing and Killarney Court, Maudsland/Oxenford. 4 PREVIOUS RESOLUTIONS ES14.0522.004 (22 May 2014) "That the Director Engineering Services bring back a report regarding cost sharing for footpaths and other ancillary works in Main Roads controlled corridors." G14.0819.013 (19 August 2014) 1 That Council notes that ‘cost sharing arrangements’ with respect to road works on

State-controlled roads may be requested to be entered into by the State from time-to-time but such arrangements will be brought before Council to be considered on a case-by-case basis paying particular attention to short and long term cost-benefit assessment.

2 That Council does not endorse the Local Government Association’s negotiated

agreement with the State government on ‘cost sharing responsibilities for works on State-controlled roads.

3 That the Director Engineering Services formally requests the Deputy Director-

General, Department of Transport and Main Roads to:

a) include cycling and pedestrian facilities in all State transport projects within the City of Gold Coast;

b) develop guidelines under the Active Transport Plan that clarifies the provision of

pedestrian facilities on the city’s road network, including State-controlled roads. 5 DISCUSSION At present, pedestrians and cyclists are walking along the road shoulder of Maudsland Road between Riverstone Crossing and Killarney Court to access key destinations. A significant amount of residential development has been constructed in recent years to the west, south-west and east of Maudsland Road with further development underway to the south-east.


ITEM 5 (Continued) COST SHARING AGREEMENT BETWEEN CITY OF GOLD COAST AND THE DEPARTMENT OF TRANSPORT AND MAIN ROADS TO CONSTRUCT A PATH ON MAUDSLAND ROAD, MAUDSLAND/OXENFORD TT1017/113/12(P3) A service station and shopping centre has also recently been completed on Maudsland Road just north of Killarney Court. This has resulted in an increase in the number of people walking and cycling to the local shops and services. Council has received numerous requests from the local community between 2013 and 2015 for a path between Riverstone Crossing and Killarney Court. Transport and Traffic officers have undertaken site investigations and identified a safety issue with people walking along the road shoulder and uneven verge. The worn track on the western verge also suggests a significant level of foot traffic. Given the number of users and increasing number of vehicles using Maudsland Road, it has been identified that a path is highly desirable to complete the link between the existing path at the intersection of Riverstone Crossing and Maudsland Road and the existing path on Killarney Court. This path will provide a safer facility for pedestrians and cyclists travelling between residential developments and key destinations such as shops, restaurants and a school bus stop and prevent pedestrians and novice cyclists from having to share the busy road carriageway with general motor traffic. There are no known development proposals on the lands fronting Maudsland Road in this location. Maudsland Road is a State-controlled road. Council resolved in August 2014 to consider entering into cost sharing arrangements with the State Government on a case by case basis. Transport and Traffic officers have discussed a potential cost sharing arrangement with the Department of Transport and Main Roads (TMR), who have agreed to contribute 50% of the cost to survey, design and construct approximately 220 metres of 2 metre wide shared path along Maudsland Road (between Kleinschmidt Road (unformed) and the Riverstone Crossing / Maudsland Road intersection). An additional section of path, approximately 130 metres in length is required along Killarney Court in front of the Coomera Tavern to link to the path on the eastern side, located at the front of the Maudsland Village shopping centre on the corner of Killarney Court and Maudsland Road. As Killarney Court is a Council road, the City would need to fund this section of path. The project will be delivered by Council (see attached map of proposed works). TMR have confirmed that their contribution can be paid as a lump sum and will include reasonable allowances for contingencies and administrative overheads. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Cost sharing with the State Government to construct footpaths within the State-controlled road corridor contributes to a number of themes and outcomes within the Council’s Corporate Plan, including: 1 Place Sharing the cost of developing the City’s transport network will assist in developing an integrated transport system in a smart, connected City, through a program of transport improvements including walking networks.


ITEM 5 (Continued) COST SHARING AGREEMENT BETWEEN CITY OF GOLD COAST AND THE DEPARTMENT OF TRANSPORT AND MAIN ROADS TO CONSTRUCT A PATH ON MAUDSLAND ROAD, MAUDSLAND/OXENFORD TT1017/113/12(P3)

2 Prosperity Sharing the cost of developing the City’s transport infrastructure network will assist in supporting productivity and growth. 3 People Sharing the cost of developing the City’s transport network will assist with encouraging active travel. This will be achieved through the planning, development and implementation of a Pedestrian and Cycle Plan for the city. 7 COMMONWEALTH GAMES IMPACT Nil. 8 FUNDING AND RESOURCING REQUIREMENTS Budget/Funding Considerations A high level cost estimate for the project has been developed by Projects Branch in the Engineering Services Directorate. The project includes survey, detailed design and construction and is estimated to cost $270,000 including contingencies. The cost to Council to design and construct the project is estimated at $185,000. Of this, $40,000 has been allocated by Division 2 and Division 5 from their respective Local Area Works (LAW) budgets. This leaves $145,000 to be funded by Council. The contribution from TMR for the works on the State-controlled road is estimated at $85,000. Table 1 below shows the estimated funding required from Council, Division 2 and Division 5 LAW and TMR to complete the entire project. Table 1: Proposed cost sharing arrangements for the Maudsland Road shared path.

Funding Source Maudsland Road Killarney Court Total

City of Gold Coast $65,000 $80,000 $145,000

Division 2 LAW Nil $20,000 $20,000

Division 5 LAW $20,000 Nil $20,000

TMR $85,000 Nil $85,000

Total $270,000 The LAW allocation of $40,000 will fund survey and detailed design in the 2014-15 financial year. Funding is available in the Active Transport Infrastructure program (ES3460C002) to complete detailed design this financial year if required. An allocation to construct the project will be listed for consideration under 50113 Local Active Transport Links in the 2015-16 Active Transport Infrastructure program. The project will be managed and delivered using existing staff and resources within the Transport and Traffic Branch.


ITEM 5 (Continued) COST SHARING AGREEMENT BETWEEN CITY OF GOLD COAST AND THE DEPARTMENT OF TRANSPORT AND MAIN ROADS TO CONSTRUCT A PATH ON MAUDSLAND ROAD, MAUDSLAND/OXENFORD TT1017/113/12(P3) 9 RISK MANAGEMENT Transport and Traffic officers have worked closely with TMR to address safety for active transport users on State-controlled roads. Although Council does not universally endorse the Local Government agreement on cost sharing based on responsibilities within State-controlled roads, officers were authorised under point one of the Council decision on 19 August 2014 to discuss projects on a case by case basis. An agreement has now been reached on the first project to be considered by Council and the State Government on a case by case basis. This shared path project at Maudsland Road, Maudsland/Oxenford will significantly improve safety, as well as delivering an important link in the City’s active transport network. If this agreement is not endorsed by Council, the opportunity to cost share in the construction of a path on Maudsland Road will be lost. This may impact on future discussions regarding delivery of active transport infrastructure on State-controlled roads which will reduce the community’s ability to choose to walk and cycle instead of drive. This opportunity to partner with the State Government supports the objectives of the Gold Coast City Transport Strategy 2031 and contributes to improved transport infrastructure and transport choices for the community. 10 STATUTORY MATTERS Nil. 11 COUNCIL POLICIES Nil.

12 DELEGATIONS Nil. 13 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted



Alton Twine, Director Engineering Services


Ken Deutscher, Manager Transport and Traffic Branch


Craig Wallace, Executive Coordinator Transport Planning and Policy


Tracy Clark, Coordinator Active Transport



ITEM 5 (Continued) COST SHARING AGREEMENT BETWEEN CITY OF GOLD COAST AND THE DEPARTMENT OF TRANSPORT AND MAIN ROADS TO CONSTRUCT A PATH ON MAUDSLAND ROAD, MAUDSLAND/OXENFORD TT1017/113/12(P3) Jack Donaghey Manager Network Planning and Performance South Coast Region

Department of Transport and Main Roads

Yes

Sanjay Ram District Director South Coast Region

Department of Transport and Main Roads

Yes

Councillor Gilmore City of Gold Coast Division 5 Yes Councillor Owen-Jones City of Gold Coast Division 2 Yes 14 STAKEHOLDER IMPACTS In accordance with the External Communication Policy, Corporate Communication staff should be consulted on potential positive and negative impacts prior to this report going forward. External / community stakeholder Impacts The community will benefit from the construction of a path along Maudsland Road as this will provide a safer facility for pedestrians and cyclists travelling between the residential developments west and east of Maudsland Road and key destinations such as shops, restaurants and a school bus stop. 15 TIMING It is proposed to commence survey and detailed design in the 2014-15 financial year. This phase of the project can be funded through contributions from Division 2 and Division 5 LAW and 50109 Major Bikeways Forward Planning within the Active Transport Infrastructure program (ES3460C002) if required. An allocation to construct the project will be listed for consideration under 50113 Local Active Transport Links in the 2015-16 Active Transport Infrastructure program. 16 CONCLUSION Primarily this is a local access issue: A path is highly desirable on the western side of Maudsland Road between Riverstone Crossing and Killarney Court at Maudsland/Oxenford to provide a safer facility for pedestrians and cyclists and complete a 350 metre vital link in the City’s active transport network. Transport and Traffic officers have discussed a potential cost sharing arrangement with TMR, who have agreed to contribute 50% of the cost to construct a 2 metre wide shared path along Maudsland Road. This will be complemented by work by the City on Killarney Court. For a cost of $185,000 (which includes $40,000 funding from Division 2 and Division 5 LAW) the City will obtain long term safety and accessibility benefits. Council is proposing to undertake survey and design in 2014-15 and construction in 2015-16 following approval of the Active Transport Infrastructure program.


ITEM 5 (Continued) COST SHARING AGREEMENT BETWEEN CITY OF GOLD COAST AND THE DEPARTMENT OF TRANSPORT AND MAIN ROADS TO CONSTRUCT A PATH ON MAUDSLAND ROAD, MAUDSLAND/OXENFORD TT1017/113/12(P3) 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Council endorses a cost sharing agreement with The Department of Transport

and Main Roads to construct a path on Maudsland Road which is a State-controlled road between Riverstone Crossing and Killarney Court, Maudsland/Oxenford as indicated in Table 1 of the report, on the basis that each party bears 50% of the total cost of the section of path along the State-controlled road.

2 That Council approves the allocation of $20,000 from the 2014-15 Division 2 and Division 5 Local Area Works entitlement in support of the shared path project along Maudsland Road and Killarney Court.

Author: Authorised by: Tracy Clark Alton Twine Coordinator Active Transport Director Engineering Services 23 March 2015 iSPOT: #48112439-v2 plus Attachment #48896982 COMMITTEE RECOMMENDATION EWT15.0428.005 moved Cr Owen-Jones seconded Cr Gilmore 1 That Council endorses a cost sharing agreement with The Department of

Transport and Main Roads to construct a path on Maudsland Road which is a State-controlled road between Riverstone Crossing and Killarney Court, Maudsland/Oxenford as indicated in Table 1 of the report, on the basis that each party bears 50% of the total cost of the section of path along the State-controlled road.

2 That Council approves the allocation of $20,000 from the 2014-15 Division 2 and Division 5 Local Area Works entitlement in support of the shared path project along Maudsland Road and Killarney Court.

CARRIED UNANIMOUSLY


Notes: 1. Advise project mgr of start / finish dates. 2. Compulsory pre-start meeting required. 3. Construction to be in accordance with Land

Development Guidelines.

Reduce width of footpath to 1.5m (distance between property boundary and invert) and maintain 1.5m width to kerb ramp, approx. 46m. Four offset boundary points required from survey.

Install 90° parking bays using 115m of type ‘A’ barrier kerb.

Construct 100mm thick reinforced 2m wide concrete footpath approx 220 l/m.

Property Boundary issues to be resolved with bottleshop and Tavern.

N

Maudsland Road, Maudsland Footpath Construction Project No CR242332 Sketch 1 of 1 Sketched by: B. Castelijn Date: 26 November 2014

Construct 100mm thick reinforced 2m wide concrete footpath approx 130 l/m. Three offset boundary points required from survey.

Install stormwater pipes to open drain to allow path over.

If tree trimming or removal required on rural road, permission to be obtained from Assets.

Install Kerb Ramps (7 of).

ATTACHMENT 1


ITEM 6 TRANSPORT & TRAFFIC BRANCH CHRISTENSEN ROAD SOUTH, STAPYLTON – REVESTING RD109320/46/01/01(P1) Refer 6 page attachment 1 BASIS FOR CONFIDENTIALITY Not applicable. 2 EXECUTIVE SUMMARY Not applicable. 3 PURPOSE OF REPORT To obtain Council approval to revest ownership of land compulsorily acquired by the City and acquire a separate portion of land associated with proposed roadworks for a new road link on Christensen Road, Stapylton between Burnside Road and Stapylton-Jacobs Well Road, Stapylton. Refer to attachment 6.1 for locality plan. To obtain Council endorsement to revest 749 m2 of land compulsorily acquired from 9 Christensen Road South Stapylton (Lot 6 on SP149146) following compulsory acquisition pursuant to Section 17 of the Acquisition of Land Act 1967. To obtain Council endorsement to acquire 28 m2 of private land from 9 Christensen Road South Stapylton (Lot 6 SP260824) for Christensen Road South road upgrade works. 4 PREVIOUS RESOLUTIONS Ex Minute ES10.1006.008 of Wednesday, 6 October, 2010 1 That the concept design presented within the Christensen Road – Stapylton – Road

Connection Planning Report (CRPR) be endorsed as the basis for future detailed design, allocation of funding for delivering improvements, land acquisition requirements, the conditioning of development approvals occurring along the corridor and completion of the road works on the south side of Sandy Creek.

2 That a copy of the CRPR be implemented through the development assessment and

approval process. 3 That negotiations be initiated with landowners seeking to reduce the area of

acquisition, if earth batters, beyond the minimum width of the road reserve are retained in private property. In such circumstances, batters would be of maintainable grade and revegetated as part of the construction works.

4 That Council commence the compulsory acquisition of the privately owned land

subject to detailed survey, as detailed in this report and shown in Attachment 8.1 – 8.7 for road purposes.

5 That Council serve a Notice of Intention to Resume the land in Recommendation 4 in

accordance with Section 7 of the Acquisition of Land Act 1967.


ITEM 6 (Continued) CHRISTENSEN ROAD SOUTH, STAPYLTON – REVESTING RD109320/46/01/01(P1) 6 That Council subsequently considers any objections as a result of Recommendation

4 above, in accordance with Section 8 of the Acquisition of Lands Act 1967, and provided that there are no objections, Council applies to the Minister for the Department of the Environment and Resource management for the resumption of land in accordance with the provisions of the Acquisition of Land Act 1967.

7 That the reasonable costs of survey, valuation fees, legal costs, registration stamp

duty and any other fees connected with the resumption and issue of a copy of the Certificate of Title be at Council’s expense.

5 DISCUSSION The proposed Christensen Road corridor connects Burnside Road and Stapylton-Jacobs Well Road, Stapylton. Currently Christensen Road consists of a constructed northern section (2.15 km) and a partially constructed southern section (0.175 km) separated by an unconstructed and partially constructed section (0.500 km) crossing Sandy Creek. The Christensen Road – Stapylton – Road Connection Planning Report (CRPR) contained concept designs to deliver a road upgrade to connect the northern and southern sections of Christensen Road across Sandy Creek. Land acquisition was completed based on concept designs and in accordance with ES10.1006.008. On the 20 December 2013, 908 square metres of land was compulsorily acquired from 9 Christensen Road South (cancelling Lot 6 on SP149146). The resumed area comprised of two strips of land located on both sides of Christensen Road South. The area was subsequently dedicated as road on the 24 March 2014. The land compulsorily acquired from Lot 6 SP149146 in accordance with the 2008 Council decision was: Western side of Christensen Road South 749 square metres Eastern side of Christensen Road South 159 square metres Total land previously acquired 908 square metres

Changes to the detailed design in accordance with the previous Council decision have resulted in a shift of the road to the east. This means that only 159 square metres from the eastern side of Christensen Road South is required. Refer to attachment 6.2 and attachment 6.3 showing the previous approved land acquisition and the proposed survey plan for Lot 6 on SP260824 respectively. The modification to the road design to the east also requires the acquisition of an additional 28 square metres of private land from the eastern side of 9 Christensen Road South (Lot 6 SP260824) reducing the total land requirement for this project. The previous resumption of 159 square metres of land was previously acquired from the eastern side of the road in December 2013. The total area of land required on the eastern side of the road as a consequence of the change in road design is 187 square metres. Additional land required after proposed revestment and acquisition actions Western side of Christensen Road South 0 square metres Eastern side of Christensen Road South 28 square metres Total land to be acquired 28 square metres


ITEM 6 (Continued) CHRISTENSEN ROAD SOUTH, STAPYLTON – REVESTING RD109320/46/01/01(P1) Negotiations were undertaken with the land owner’s solicitor and agreement has been reached with the land owners to:

• revest 749 square metres of land located on the western side of Christensen Road South into lot 6 SP260824 (will be new survey plan on revestment)

• acquire an additional 28 square metres of private land on the eastern side of Christensen Road South from Lot 6 SP260824.

Upon completion of these actions the total land area acquired from the land owners will be 187 square metres (of which 159m2 has been acquired previously). The benefits of these actions are:

• less disturbance to the land owners property

• less compensation payable to the land owners

• a safer road alignment that better meets current design standards. Following the owner’s acceptance to the revestment of 749m² resumed from Lot 6 on SP149146 (western side of Christensen Road South) and opened as road a survey was undertaken by Council to excise the 749m² from road reserve so that a Deed of Grant (Freehold Title) could be issued in the name of the Council. The property description resulting from this survey was Lot 1 on SP272911. A Deed of Grant has been issued for this property and it is currently owned by the Council of the City of Gold Coast. The processes of revestment and acquisition to achieve the new road alignment are as follows.

• A permanent road closure application to the Department of Natural Resources and Mines for the 749 square metres of road area located on the western side of Christensen Road South. An offer from the Department of Natural Resources and Mines to permanently close 749 square metres of road was received on the 21 November 2014. The 749m² area of road is now permanently closed with a Deed of Grant issued in the Name of Council of the City of Gold Coast.

• Revesting of the road area back to the land owners pursuant to Section 17 of the

Acquisition of Land Act 1967. The land owners have agreed to the revesting of 749 square metres of land.

• The amalgamation of Lot 1 on SP272911 with Lot 6 on SP260824. The survey for this amalgamation has been completed and the amalgamated parcel is described as Lot 6 on SP272912 attachment 6.4.

• Section 15 agreement to be drafted and executed pursuant to the Acquisition of Land

Act 1967 for the acquisition of the additional 28 square metres of land on the eastern side of the road. The land owners have agreed to the acquisition of an additional 28 square metres of land.

• Compensation claim to be settled. A compensation claim has not been received.


ITEM 6 (Continued) CHRISTENSEN ROAD SOUTH, STAPYLTON – REVESTING RD109320/46/01/01(P1) Table A – Land to be acquired Land Owner Real Property Description Land Area Required Freehold owner Part of Lot 6 SP260824 28 square metres Upon endorsement by Council Resolution the matter can be completed and compensation settled. 6 ALIGNMENT TO CORPORATE PLAN, COPORATE STRATEGIES AND

OPERATIONAL PLAN This agenda satisfies the following organisational objectives. Key focus area 3 - A city connecting people and places. We have integrated, accessible transport networks that connect people and places, locally, regionally and internationally.

• 3.1 – There is a choice of transport systems serving the city. • 3.2 – Public transport and other environmentally friendly modes of travel are attractive

and desirable for people to use. • 3.3 – The transport network is well maintained and meets relevant safety standards.

Gold Coast City Transport Strategy 2013 Theme 18 Plan, invest in and manage the road network to provide a match between the transport function of each road with the places it goes and the users who need priority

• 18.3 In conjunction with developers, construct new road links generally in accordance with the Priority Infrastructure Plan Part 8.

7 COMMONWEALTH GAMES IMPACT Nil. 8 FUNDING AND RESOURCING REQUIREMENTS The project is currently listed for construction in the current four years capital works program and is due to commence in 2015-2016. Funding will be made available for the land acquisition from the Major Roadworks Program ES3460 C004. 9 RISK MANAGEMENT The designer’s risk assessment included in the CRPR has continued through the detailed design stage of the project. Identified risks will be reviewed, monitored and mitigated as appropriate at each stage of the project. 10 STATUTORY MATTERS 10.1 Indigenous Cultural Heritage Interest The Aboriginal Cultural Heritage Act 2003 requires the protection of any cultural heritage artefacts found in or around a construction zone.


ITEM 6 (Continued) CHRISTENSEN ROAD SOUTH, STAPYLTON – REVESTING RD109320/46/01/01(P1) There may be indigenous cultural materials present within the project area. The proposed roadwork has been assessed as a Category 5 activity. The activity has a high risk that it could harm aboriginal cultural heritage material. The work should be undertaken with the duty of care as defined in the guidelines gazetted with the Aboriginal Cultural Heritage Act 2003. 10.2 European Cultural Heritage Issues There are no known European cultural heritage issues on the project area. 10.3 Vegetation Management Issues Vegetation Management was addressed as part of the Christensen Road – Stapylton – Road Connection Planning Report (CRPR) and in the subsequent detailed design stage. 11 COUNCIL POLICIES Not applicable. 12 DELEGATIONS Not applicable. 13 COORDINATION & CONSULTATION The following internal and external stakeholders have been consulted with during preparation of this report. Name and title of the stake holder consulted

Directorate or organisation

Is the stakeholder satisfied with content of report and recommendations (Yes/No)

Ken Deutscher, Manager Transport & Traffic


Craig Wallace, Executive Coordinator Transport Planning & Policy


Brett Bass, Acting Coordinator Transport Infrastructure


Chris Walker, Transport Infrastructure Engineer


Brendan Madden, Manager Property Services

Organisational Services Yes

Senior Property Officer Property Services



ITEM 6 (Continued) CHRISTENSEN ROAD SOUTH, STAPYLTON – REVESTING RD109320/46/01/01(P1) 14 STAKEHOLDER IMPACTS The proposed upgrade to Christensen Road will:

• provide a strategic link between Stapylton-Jacobs Well Road and Burnside Road • improve road connectivity generally in the Stapylton area • reduce impact on private property • reduce compensation payable.

15 TIMING The upgrade to this section of Christensen Road is proposed to be undertaken in two stages within proposed modifications to the four year capital works program for 2015-16 and 2017-18. These works will be coordinated with the construction of Burnside Stage 1 to gain construction efficiencies. This timeframe is dependent upon funding being made available in future budgets. 16 CONCLUSION The Christensen Road, Stapylton road connection project involves the upgrading of Christensen Road and construction of a new crossing over Sandy Creek to provide an alternative access link between Stapylton-Jacobs Well Road and Burnside Road. The detailed design and survey phase of this project has been completed. Following the acquisition of land from Lot 6 on SP149146 in 2013 it was identified that the amount of land acquired could have signification impacts on the private land owners and therefore it is proposed to revest land resumed on the western side of Christensen Road South back to the land owners. The modification in road design has required the acquisition of an additional 28 square metres of private land from Lot 6 SP260824 located on the eastern side of Christensen Road South. Upon completion of the revestment of 749 square metres of land on the western side of Christensen Road South and the acquisition of 28 square metres from the eastern side of Christensen Road South all identified land acquisition requirements are complete. 17 RECOMMENDATION It is recommended that Council resolves as follows:

1 That Council authorises the revestment of 749 square metres of land previously acquired compulsorily from 9 Christensen Road South, Stapylton (Lot 6 SP149146) to the land owners at the time of the acquisition pursuant to Section 17 of the Acquisition of Land Act 1967 as identified on Survey Plan SP260824 and attachment 6.2.

2 That Council authorises the amalgamation of Lot 1 on SP272911 with Lot 6 on SP260824 and registration of survey plan (Lot 6 on SP272912) with the Department of Natural Resources and Mines.


ITEM 6 (Continued) CHRISTENSEN ROAD SOUTH, STAPYLTON – REVESTING RD109320/46/01/01(P1)

3 That Council authorises negotiation of an agreement with the land owners to acquire an additional 28 square metres of land located on the eastern side of Christensen Road South as identified in Table A and attachment 6.3 of this report under Section 15 of the Acquisition of Land Act 1967.

4 That, should negotiations for agreement be unsuccessful, the City serves a Notice of Intention to Resume the land in recommendation 3 in accordance with Section 7 of the Acquisition of Land Act 1967.

5 That the City subsequently considers any objections as a result of recommendation 4 above, in accordance with section 8 of the Acquisition of Land Act 1967 and provided that there are no objections, the City applies to the Minister for the Department of Natural Resources and Mines for the resumption of land in accordance with the provisions of the Acquisition of Land Act 1967.

6 That the reasonable costs of survey, valuation fees, legal costs, registration, stamp duty and any other fees connected with the revestment and acquisition and issue of a copy of the Certificates of Title be at the City’s expense.

7 The restoration of area affected by the resumption will be carried out at the City’s expense including reinstatement of fences, driveways, stabilisation of disturbed ground surfaces and other structures as deemed appropriate.

Author:

Authorised by:

Christopher Walker Alton Twine Transport Infrastructure Engineer Director Engineering Services 24 February 2014 iSPOT: #35886519-v12 + Attachments #48126396, #47976779, #47977346, #48907168 COMMITTEE RECOMMENDATION EWT15.0428.006 moved Cr Gates seconded Cr Owen-Jones 1 That Council authorises the revestment of 749 square metres of land previously

acquired compulsorily from 9 Christensen Road South, Stapylton (Lot 6 SP149146) to the land owners at the time of the acquisition pursuant to Section 17 of the Acquisition of Land Act 1967 as identified on Survey Plan SP260824 and attachment 6.2.

2 That Council authorises the amalgamation of Lot 1 on SP272911 with Lot 6 on SP260824 and registration of survey plan (Lot 6 on SP272912) with the Department of Natural Resources and Mines.

3 That Council authorises negotiation of an agreement with the land owners to acquire an additional 28 square metres of land located on the eastern side of Christensen Road South as identified in Table A and attachment 6.3 of this report under Section 15 of the Acquisition of Land Act 1967.

4 That, should negotiations for agreement be unsuccessful, the City serves a Notice of Intention to Resume the land in recommendation 3 in accordance with Section 7 of the Acquisition of Land Act 1967.

5 That the City subsequently considers any objections as a result of recommendation 4 above, in accordance with section 8 of the Acquisition of Land Act 1967 and provided that there are no objections, the City applies to the Minister for the Department of Natural Resources and Mines for the resumption of land in accordance with the provisions of the Acquisition of Land Act 1967.


ITEM 6 (Continued) CHRISTENSEN ROAD SOUTH, STAPYLTON – REVESTING RD109320/46/01/01(P1)

6 That the reasonable costs of survey, valuation fees, legal costs, registration, stamp duty and any other fees connected with the revestment and acquisition and issue of a copy of the Certificates of Title be at the City’s expense.

7 The restoration of area affected by the resumption will be carried out at the City’s expense including reinstatement of fences, driveways, stabilisation of disturbed ground surfaces and other structures as deemed appropriate.

CARRIED UNANIMOUSLY


Attachment 6.1


Attachment 6.2


Attachment 6.3


Attachment 6.4


ITEM 7 GOLD COAST WATER GOLD COAST WATER ACTION LIST AND FORWARD PLANNING SCHEDULE CM787/788/06/01(P1)

ENGINEERING, WATER & TRANSPORT COMMITTEE 2015

STANDING AGENDA ITEMS

Document Number

Subject Action Officers

Action

#37409759

Gold Coast Water - Action List and Forward Planning Schedule Recommendation: WS12.0912.004 Resolution: G12.0914.028

Paul Heaton Standing Agenda Item

#43956542

Annual Register of Council Directions Recommendation: WS14.0430.007 Resolution: G14.0506.025

Paul Heaton

Standing Agenda Item

Proposed Date


Action

To be confirmed

Long Term Recycled Water Release Staging Options Update Recommendation: WS13.0911.006 Resolution: G13.0917.024

Kathy Baker

June 2015 Transition Plan for Decommissioning of Class A+ recycled water supply – Update No. 3 Recommendation: WS14.0219.001 Resolution: G14.0225.017

Kim Evans / Kathy Baker

That Council formally seeks approval from the Minister of Planning that section MP4.2 of the Queensland Development Code for a supplementary water supply scheme is mandatory in the dual reticulation scheme area to maintain current water network operations.

That as part of the Transition Plan consideration be given to an appropriate price path for potable water to affected residents.


ITEM 7 (Continued) GOLD COAST WATER ACTION LIST AND FORWARD PLANNING SCHEDULE CM787/788/06/01(P1) Proposed Date


Action

August 2015 Scientific Services Delivery Model – Implementation Plan Recommendation: EWT14.0904.007 Resolution: G14.0916.013

Brad Dowling That the Director Gold Coast Water reports back to Council in August 2015 on progress associated with the proposed implementation plan. Confidential Report

To be confirmed

Request for permanent water supply for Cobaki Estate development Recommendation: EWT14.1204.008 Resolution: G14.1212.006

Kathy Baker That a report be brought back to Council before any final agreement is entered into. The outcome must be in the best interests of the rate payers of the City of Gold Coast.

RECOMMENDATION It is recommended that Council resolve as follows: That the Gold Coast Water Action List and Forward Planning Schedule for Engineering, Water & Transport Committee be noted. Authorised by:

Paul Heaton Director Gold Coast Water iSPOT#37409759

COMMITTEE RECOMMENDATION EWT15.0428.007 moved Cr Caldwell seconded Cr McDonald That the Gold Coast Water Action List and Forward Planning Schedule for Engineering, Water & Transport Committee be noted.

CARRIED


ITEM 8 GOLD COAST WATER GOLD COAST WATER ANNUAL REGISTER OF COUNCIL DIRECTIONS WSS1125/1227/02(P1)

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

• a resolution that goes against or substantially modifies the recommendations of the Officers and; • has a (or potential to have a) material/commercial impact on the business unit. Council Meeting

Council Resolution

Description 2013-14 Total

2014-15 Progressive

686 G14.0916.004 That the adopted infrastructure charges are adjusted so that there is a 100% discount for family accommodation dwellings of 100m2 GFA or less for any approvals issued on or after 1 July 2014 through the remainder of this Council’s term. Permanent changes to Adopted Infrastructure Charges Resolution (AICR):

TBA

TBA

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

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

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

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


ITEM 8 (Continued) GOLD COAST WATER ANNUAL REGISTER OF COUNCIL DIRECTIONS WSS1125/1227/02(P1) RECOMMENDATION It is recommended that Council resolve as follows: That the Gold Coast Water Annual Register of Council Directions be noted. Authorised by: Paul Heaton Director Gold Coast Water iSPOT#43956542 COMMITTEE RECOMMENDATION EWT15.0428.008 moved Cr Caldwell seconded Cr McDonald That the Gold Coast Water Annual Register of Council Directions be noted.

CARRIED


ITEM 9 GOLD COAST WATER GOLD COAST WATER FINANCIAL PERFORMANCE AS AT 28 FEBRUARY 2015 FN334/252/15(P6) Attachment 1 – Detailed Income Statement Attachment 2 – Concealed Leakage Remissions > $10,000 – CONFIDENTIAL 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT The purpose of this report is to provide the Engineering Water and Transport Committee with an update of Gold Coast Water’s (GCW) financial performance as at 28 February 2015. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION 5.1 High Level Financial Summary

Table 1 - Gold Coast Water - Year to Date Financial Summary

Table 1 above shows GCW’s financial position as at 28 February is currently 5% or $7.33m above forecast. The major contributing factors to this are favourable variances in:

• Capital revenue – ahead of forecast $8.45m • Flow dependant expenditure – below forecast $4.96m • Controllable operating expenditure – below forecast $0.77m

This is offset by Operating Revenue being $6.85m below forecast. Major variances will be discussed in the following paragraphs with a detailed Income Statement contained within Attachment 1 to the report.

Gold Coast Water Financial Summary

Actual Initial Budget

Revised Budget Var Var

Initial Budget

Revised Budget

Month ended 28 February 2015 $000's $000's $000's $000's % $000's $000'sOperating Revenue 303,569 309,854 310,417 (6,848) (2) 463,533 463,875Flow -Dependant Expenditure 114,146 120,312 119,107 4,961 4 178,724 177,010Operating Revenue net of Flow Dependant Expenditure 189,422 189,542 191,310 (1,888) (1) 284,809 286,865Gross Margin 0.7 0.6 0.6 0.7 0.7

Total Controllable Operating Expenditure 62,866 67,808 63,634 768 1 101,713 101,092Loss on Sale of Assets 0 3,333 0 0 0 5,000 5,000

Net Profit before Capital Revenue 126,556 118,401 127,676 (1,120) (1) 178,096 180,773

Total Capital Revenue 25,961 27,128 17,507 8,454 48 40,500 45,500

EBITDA 152,518 145,529 145,183 7,335 5 218,596 226,273

Year to Date Full Year


ITEM 9 (Continued) GOLD COAST WATER FINANCIAL PERFORMANCE AS AT 28 FEBRUARY 2015 FN334/252/15(P6) 5.2 Operating Revenue ($6.85m Unfavourable) 5.2.1 Rates Revenue Forecast ($6.96m Unfavourable)

Table 2 – Water and Sewer Rates Revenue Forecast

Volumetric Revenue Water consumption is $8.08m (6%) below forecast. The major factor contributing to the variance is reduced water demand as a result of significant rainfall during December to February. Sewage volumetric revenue is $0.70m below forecast. The major factor influencing this revenue stream is:

• Reduced water demand – sewage volumetric revenue is a function of water consumption, adjusted for a customer’s applicable discharge factor. Accordingly, reductions in water consumption have a flow-on impact to reduce sewage volumetric revenues.

GCW has revised the City’s demand forecast for the 2014-15 year. It is now anticipated that the full year demand will be approximately 56,474 ML which represents a 4.9% (2,913 ML) reduction on the initial demand forecast for the year. This equates to a $9.6m reduction in volumetric water revenue and a $0.34m reduction in sewage volumetric revenue. The revised demand projection was undertaken at the end of February 2015. With continued wet weather throughout March and early April, a further downward trend in demand could be experienced.

Gold Coast Water Rates RevenueActual Initial

BudgetRevised Budget Var Var

Initial Budget

Revised Budget

Month ended 28 February 2015 $000's $000's $000's $000's % $000's $000'sService Charges

Water 41,713 40,714 40,714 999 2 61,410 61,410Sew erage 109,475 108,798 108,798 677 1 164,103 164,103

Total Service Charges 151,188 149,512 149,512 1,676 1 225,513 225,513Less: Concealed LeakageVolumetric Charges

Water 125,344 133,259 133,424 (8,080) (6) 197,750 197,750Sew age 21,409 22,508 22,122 (713) (3) 33,400 32,700Recycled Class A 498 337 337 161 48 500 500

Total Volumetric Charges 147,251 156,104 155,883 (8,632) (6) 231,650 230,950

Total Rates Revenue 298,439 305,616 305,395 (6,956) (2) 457,163 456,463

Full YearYear to Date


ITEM 9 (Continued) GOLD COAST WATER FINANCIAL PERFORMANCE AS AT 28 FEBRUARY 2015 FN334/252/15(P6) 5.2.2 Other Operating Revenue ($0.11m Favourable) Interest Revenue ($0.08m Favourable) The number of accounts falling into arrears has trended downward, however there remains a significant level of ‘core debt’, much of which was transferred back from Allconnex Water, and, if payment arrangements are not in place, this ‘core debt’ accrues interest. 5.3 Flow Dependant Expenditure ($4.96m Favourable) Bulk Water Purchases ($4.85m Favourable)

Graph 1 Analysis of Water Supplied versus Demand Forecast

ML supplied as invoiced by the SEQ Water Grid Manager.

The above graphical representation depicts year-to-date water supplied and the 2014-15 demand forecast, as submitted to the State Government, compared with last year’s month-by-month water supplied. As reflected above, Bulk Water Purchases for the month of February 2015 are 10% below forecast at 4,252 ML. Rainfall for February 2015 was 181% of the LTA of 191mm with 345.2mm recorded at the Gold Coast Seaway. In comparison with previous years this was the wettest February since 2010. For the year to February 2015, Bulk Water Purchases are 4.60% below forecast at 38,258 ML, compared to a forecast of 40,019 ML. As noted previously, the demand forecast for 2014-15 has been revised to 56,474 ML. This represents an anticipated reduction in Bulk Water Purchases of $7.91m which will be recognised as part of the March budget review.

0

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Water Supplied* vs Demand Forecast 2014-15TotalInvoiced(ML)2014-15TotalForecast(ML)2013-14TotalInvoiced(ML)2013-14Rainfall(mm)

2014-15Rainfall(mm)


ITEM 9 (Continued) GOLD COAST WATER FINANCIAL PERFORMANCE AS AT 28 FEBRUARY 2015 FN334/252/15(P6) Biosolids Disposal ($0.13m Favourable) Biosolids removal costs are calculated on weight and can be significantly affected by weather conditions. A dry spring allowed the Coombabah STP to fully utilise its drying beds, lowering moisture content and reducing weight, therefore lowering the cost of removal. However, higher than anticipated rainfall in December to February mean the current favourable variance is expect to slightly decrease. A $0.05m reduction in Biosolids removal has been proposed as part of the March budget review. 5.4 Controllable Expenditure ($0.77m Favourable) Services ($0.32m Favourable) On a year to date basis, services are approximately 3% below projections. This current underspend is expected to be taken up over the remainder of the year, particularly in light of increased corrective maintenance occurring as a result of recent heavy rainfall. Consultants ($0.33m Favourable) It is proposed this budget will be reduced by $0.25m as part of the March budget review, as funding for the GCW Water and Sewerage Asset Revaluation and GCW Operational Efficiency Review has been deferred to later years. Regulatory Expenses ($0.07m Favourable) Regulatory expenses incorporate payments to Queensland Competition Authority (QCA) and other licence and audit fees. QCA has advised their annual fee will be $270,000, rather than the $485,000 originally advised. This budget will be amended as part of the March budget review.


ITEM 9 (Continued) GOLD COAST WATER FINANCIAL PERFORMANCE AS AT 28 FEBRUARY 2015 FN334/252/15(P6) 5.5 Loss on Sale of Assets Asset transaction processing was placed on hold, pending a decision regarding possible conversion to an “Income Approach” valuation methodology for water and sewerage infrastructure asset values. It has now been determined that this changed valuation methodology will not be implemented during the current financial year. This issue will be reconsidered for adoption at the time the next asset revaluation is required (year ended 30 June 2017). In the interim, work is progressing on process mapping for asset transaction processing under the new ERP2 system. This process development is nearing finalisation and asset transaction processing will be progressed to meet year-end deadlines. 5.6 Capital Revenue ($8.45m Favourable) The 2014-15 Developer Contributions forecast was increased to $25m as part of the September budget review. Receipts continue to exceed projections with actual receipts to February now exceeding the full year budget. A further budget increase of $5m will be reflected in the March budget review, taking total budget to $30m for 2014-15. No Contributed Assets have been recognised to date. The potential asset valuation methodology change mentioned above impacted recognition of contributed assets this financial year and the budget was re-scheduled to reflect this. Processing of contributed assets in the financial asset register is expected to commence shortly. 5.7 Community Returns Income Tax ($0.04m Favourable) Gold Coast Water is subject to the Local Government Taxation Equivalents Regime (LGTER). As part of this regime, GCW is required to prepare and submit a PAYG Instalment Activity Statement and pay a PAYG instalment each month. The PAYG instalment rate currently applicable to GCW (as issued by the Taxation Assessor) is 3.41%. This percentage is applied to total revenue generated by GCW to derive the amount of PAYG tax payable. The taxation expense recorded to date represents the total of the PAYG instalments calculated for the first eight months of the financial year. At year end a final taxation estimate will be prepared, based upon GCW’s taxable income and utilising the company taxation rate of 30% to calculate total taxation payable for the year and relevant adjustments will be made to record GCW’s full annual tax liability to Council.


ITEM 9 (Continued) GOLD COAST WATER FINANCIAL PERFORMANCE AS AT 28 FEBRUARY 2015 FN334/252/15(P6) 5.8 Capital Program 5.8.1 Capital Expenditure

The 2014-15 GCW initial capital program consisted of 75 projects totalling $44.66m. In December 2014 GCW held its quarterly Business Performance Review at which time project managers updated project estimates and monthly forecasts, enabling reporting on the progress of projects. The December forecast resulted in a further budget reduction of $1.98m, or 5% from the budget adopted in September.

Table 3 - Capital Expenditure

Year to date capital expenditure of $16.85m represents a variance of 18% against the $20.66m forecast. Product Variances Water The water program is $1.32 (21%) below forecast. The following projects are the main contributors to this variance: • Water SCADA Upgrade - $0.86 below forecast. Delays were experienced with delivery

of Milestone 1 (Site Investigation and System Planning), originally forecast for completion in November, and delivered in December. This in turn delayed delivery of Milestone 2 (Network and Hardware / Software Specifications) which was forecast for delivery in December and is not yet complete. The contractor has commenced the engineering component of Milestone 3. The schedule will be readjusted to ensure the project completion date is met and the budget will be reduced accordingly at the March budget review.

• View Street Water Main replacement - $0.18m below forecast. Latent conditions

including the excavation of rock and re-alignment of the proposed main due to a clash with an unknown thrust block on the existing main, have contributed to delays of approximately three months. Construction is expected to reach completion in April 2015.

Product

Actual Expenditure

($000's)

Revised Budget

($000's)Variance

$Variance

%Initial Budget

($000's)

Q1 Revised Budget ($000's)

Q2 Revised Budget

($000's)Water 5,042 6,361 1,319 21% 8,182 10,087 11,471 Sewerage 9,677 11,665 1,988 17% 33,097 26,613 23,052 Recycled Water 170 521 351 67% 672 894 1,086 Noncore Water 1,957 2,067 109 5% 2,585 2,585 2,585 Corporate - 50 50 100% 120 120 120 Total Capital 16,846 20,663 3,817 18% 44,656 40,299 38,314

Full year

Gold Coast Water Capital Expenditureas at 28 February 2015

Year to Date


ITEM 9 (Continued) GOLD COAST WATER FINANCIAL PERFORMANCE AS AT 28 FEBRUARY 2015 FN334/252/15(P6) • Water Main Replacement Project - $0.13m below forecast. 23 sites are scheduled for

completion this financial year. Designs are completed for all 23 sites. Construction has reached completion at 17 sites. Two sites are currently under construction and construction on the remaining four sites will be completed this financial year.

• Asset Conflict - $0.10m below forecast. Commencement of works was delayed due to finalisation of internal approvals. Works will commence in March and it is expected that the project will be completed this financial year.

Sewerage The sewerage program is $1.99m (17%) below forecast. The following projects are the main contributors to this variance: • Darlington Drive to Peachey Road Gravity Sewer Main, Yatala Project - $0.48m

below forecast. Works are being undertaken by the developer’s contractor under an Infrastructure Agreement. Minor delays in awarding the contract impacted upon site establishment and commencement of construction. Construction has now commenced and it is expected that the full budget allocation will be expended this financial year.

• Gravity Main Rehabilitation and Replacement Project - $0.44m below forecast.

Delivery contract for this project was awarded in February and the first package of works commenced late February. A further package has been prepared to go out to the market in March 2015. The budget will be reduced in the March budget review to reflect the delayed contract award.

• SPS Mechanical and Electrical Equipment Minor Renewals 2014-15 - $0.32 below

forecast. Delays were experienced in December and January due to supplier closures. Replacement pumps and air conditioning units are expected to be installed in March. The project is anticipated to be back on track by the end of March.

• Maintenance Hole Rehabilitation Project 2014-15 - $0.30m below forecast. Delays were experienced with the award of the Minor Civil Works contract which impacted delivery of the proposed scope. The budget was adjusted in the December budget review and will be adjusted further in the March budget review.

• Long Term Seaway Release - $0.26 below forecast. Finalisation of the Staging

Solutions Study final report, cost estimates and business case, have taken longer than expected. Budget reductions and program adjustments will be made at the March review to reflect the project status.

• Hope Island Road Sewerage Parallel 375mm Rising Main Upgrade of PS OX9 - $0.16m below forecast. Latent conditions with respect to existing sewer rising mains and the need for design revisions for connection details have contributed to delays in commissioning of works scheduled for December 2014. Wet weather in January 2015 further delayed commissioning works. Commissioning requires the shutdown of a significant rising main, however sewage flows during wet weather are too great to permit the required shutdowns. These delays have impacted the project cash flow. Project works are expected to be completed by April 2015.


ITEM 9 (Continued) GOLD COAST WATER FINANCIAL PERFORMANCE AS AT 28 FEBRUARY 2015 FN334/252/15(P6) Noncore Water This program is $0.11m (5%) below forecast. The meter connection program is marginally below forecast, however, this portfolio is anticipated to finish on budget at year end. 5.8.2 Status Update – Major Capital Projects • Long Term Seaway Release Project scope and budget GCW’s existing excess recycled water release system is nearing capacity. A range of short term options to increase system capacity have been investigated and, where feasible, implemented. A long term solution is required to be operational by 2018 to support continued population growth within the City. An options assessment process has been undertaken to identify and develop a long term recycled water release solution (in both average dry weather flow and peak wet weather flow conditions) for the City of Gold Coast until 2061. Environmental monitoring, marine modelling, the Coombabah to Seaway feasibility study, independent peer review of key project milestones and procurement planning all commenced in 2013-14 to support future stages of the long term release plan. Initial budget approved for the 2014-15 year was $2.0m. Budget reductions totalling $0.7m have been approved at budget reviews to date due to continued planning in 2014-15 in pursuit of a staging solution that will potentially reduce and defer capital expenditure on this project. Achievements for February • Staging Solutions Study – Hyder Consulting have completed and submitted four of the

five summary reports. The remainder are due by April 2015.

• Baseline Water Quality Monitoring – eight months of sampling has been successfully completed by Griffith University.

• Hydrodynamic Modelling – DHI Pty Ltd have submitted their final report to GCW on

combined northern and southern recycled water releases.

Major issues • Finalisation of the Staging Solutions Study final report, cost estimates and business case,

have taken longer than anticipated. A budget reduction will be sought at the March review to reflect the project status.

Financial Performance

Forecast ($) 739,968 Budget ($) 158,400,498 Expenditure ($) 483,739 ITD Expenditure ($) 1,284,237 Variance ($) 256,229 Remaining ($) 157,116,261 Variance (%) 35% Remaining (%) 99%

Year to Date Whole Project


ITEM 9 (Continued) GOLD COAST WATER FINANCIAL PERFORMANCE AS AT 28 FEBRUARY 2015 FN334/252/15(P6) • Merrimac West Wastewater Augmentation Stage 2 Project scope and budget By adopting a traditional approach of upgrading assets on a “just in time” basis, this project aims to upgrade the sewerage collection network in the Merrimac West catchment to cater for growth and replacement of ageing infrastructure. A detailed scoping study, completed by consultants Aurecon Australia and Worley Parsons, included a catchment master plan and concept designs for the required infrastructure upgrades with a forecast project value of $33m over three years. Initial budget approved for the 2014-15 year was $5.0m. A budget reduction of $2.5m was approved as part of the September budget review due to forecast delays to the construction of the major works. A further reduction of $0.2m was approved following the December budget review. Achievements for February • Construction is nearing completion on Emergency Storages and Minor Works by JFM

Contracting. Forecast completion is March 2015 with six of the seven sites completed. • Detailed design of major pump stations and pipelines by Parsons Brinkerhoff is being

finalised with all deliverables reviewed by GCW. Procurement documentation is now being prepared for this project.

Major issues

• Change in State Government plus an objection by one property owner is likely to delay

formal registration of easements, with subsequent impacts on procurement and construction phases.

• Some variations are expected on detailed design commission with Parsons Brinckerhoff

as this contract nears completion.

Financial Performance:

Forecast ($) 1,104,726 Budget ($) 35,092,507 Expenditure ($) 1,144,550 ITD Expenditure ($) 4,007,057 Variance ($) 39,824- Remaining ($) 31,085,450 Variance (%) -4% Remaining (%) 89%



ITEM 9 (Continued) GOLD COAST WATER FINANCIAL PERFORMANCE AS AT 28 FEBRUARY 2015 FN334/252/15(P6)

• Hope Island Road Sewerage Parallel 375mm Rising Main Upgrade of SPS OX9 Project scope and budget GCW has been examining ways to increase the capacity of sewerage services in the Hope Island area to service growth, in particular Hope Island itself. Consultants Worley Parsons recommended augmentations of the Hope Island Road rising main downstream of sewerage pump station OX9. Construction involves the parallel augmentation of around 650m of DN375 sewer rising main downstream of SPS OX9, along Hope Island Road, ending on the upstream side of Robinson Creek Bridge and another short section starting from OX9 wet well and ending at the median strip. This project also includes upgrading the pump station with the installation of a new pump. Achievements for February • Additional works were commenced to ensure that network changes do not adversely

impact private pump stations.

Major issues • Wet weather continues to delay final commissioning activities. Project completion has

been delayed with completion expected in April. Financial Performance

Forecast ($) 846,459 Budget ($) 1,121,512 Expenditure ($) 686,758 ITD Expenditure ($) 958,270 Variance ($) 159,701 Remaining ($) 163,242 Variance (%) 19% Remaining (%) 15%




• Maudsland Water Main Augmentation Project scope and budget The original scope of this project involved the construction of a new reservoir. Subsequent investigations during the concept design phase revealed that a more cost effective solution would achieve the desired outcome. The project now involves the construction of multiple new potable water mains (approximately 1000m x 375mm and 300m x 150mm), one new pump station and three pressure reducing valves to cater for future growth and fire fighting demand in the Maudsland area. Initial budget for 2014-15 was $0.9m. A budget reduction of $0.2m was approved as part of the September budget review due to completing construction works ahead of schedule in the 2013-14 financial year and hence not requiring that funding in 2014-15. Achievements for February • Approval of variation to install a control valve at the pump station. There is an eight week

lead time on delivery of the valve, therefore the work will be completed in May.

• All other project works are complete.

Major issues Nil Financial Performance

Forecast ($) 729,100 Budget ($) 1,998,923 Expenditure ($) 714,840 ITD Expenditure ($) 1,984,663 Variance ($) 14,260 Remaining ($) 14,260 Variance (%) 2% Remaining (%) 1%




• Refurbishment of Process Tanks at Elanora and Coombabah Sewage Treatment

Plants Project scope and budget This project involves the refurbishment of six process tanks and three pumping stations at Elanora Sewage Treatment Plant (STP) and Coombabah STP, including process tank structures, mechanical and electrical components. The assets will be replaced / renewed to “as new” condition in order to comply with operational safety standards and Department of Environment and Heritage Protection (DEHP) licences. This project will be part of an ongoing program of refurbishments, based on findings from the annual condition inspection. Initial budget for 2014-15 was $2.65m. A budget reduction of $1.5m was processed as part of the September budget review due to delays in the award of a construction contract and constraints with works required to be undertaken outside peak summer flow periods. A further reduction of $0.7m was approved following the December budget review due to continued delays with the finalisation of a suitable procurement strategy. Award of the construction contract is expected to occur in 2014-15 with works commencing in 2015-16. Achievements for February

• Tenders were advertised in February, with submissions closing in April.

• Emptying of facilities is planned for inspection by potential tenderers. Major issues • Attracting sufficient relevantly skilled and resourced contractors to ensure competitive

tenders are received. Financial Performance

Forecast ($) 80,963 Budget ($) 7,483,007 Expenditure ($) 78,799 ITD Expenditure ($) 165,806 Variance ($) 2,164 Remaining ($) 7,317,201 Variance (%) 3% Remaining (%) 98%

Whole ProjectYear to Date


ITEM 9 (Continued) GOLD COAST WATER FINANCIAL PERFORMANCE AS AT 28 FEBRUARY 2015 FN334/252/15(P6) • Darlington Drive to Peachy Road Gravity Sewer Main Project scope and budget The Darlington Drive to Peachy Road Gravity Sewer Main involves the construction of approximately 1,500 metres of 450mm and 500 metres of 375mm diameter gravity trunk sewer. The developer, Hanwell Pty Ltd, entered into an Infrastructure Agreement (IA) during Quarter 4, 2013-14 to construct a ‘works contribution’ gravity trunk sewer, as a pre-condition to develop the land. The IA requires the developer to construct the gravity trunk sewer from the subject land to the existing 500mm diameter trunk sewer on the south side of Darlington Drive, a distance of approximately two kilometres, through twelve properties which also stand to benefit from the trunk sewer. The developer undertook to fund and build the trunk sewer with associated refunds for that work. GCW (including Planning & Environment) has agreed in principle to the route of the trunk sewer, subject to surveys, easements, and final design being completed by the developer’s consultant. Initial budget approved for the 2014-15 year was $3.0m. Achievements for February • Completion of construction of 336m of DN525 sewer main.

• Installation of 80m of DN450 sewer main by horizontal directional drilling and pipe

jacking.

• Construction is in progress with minor wet weather interruptions. Major issues • Nil


Forecast ($) 1,091,582 Budget ($) 4,662,925 Expenditure ($) 611,317 ITD Expenditure ($) 719,242 Variance ($) 480,265 Remaining ($) 3,943,683 Variance (%) 44% Remaining (%) 85%



ITEM 9 (Continued) GOLD COAST WATER FINANCIAL PERFORMANCE AS AT 28 FEBRUARY 2015 FN334/252/15(P6) • Water SCADA Upgrade Project scope and budget This project is aimed at replacing the existing Radtel water SCADA (supervisory control and data acquisition) system with a new system of greater functionality and capacity to allow further expansion of the potable water network in the future. Included in the scope of the project is the change from analogue to digital radio network (telemetry). SCADA is a system operating with coded signals over communication channels to provide control of remote equipment. Moving from Radtel to a contemporary system will give Council the technology to be able to monitor real time data and better manipulate historical data for scheduling maintenance more efficiently and planning timely replacement of assets. As a result of better management of the asset base, service levels will improve with less downtime due to failures and prior warning of potential pressure reduction in catchments. Initial budget for 2014-15 was $0.75m. A budget increase of $1.0m was approved as part of the September budget review due to the preferred tender price exceeding the original project estimate. Achievements for February

• The contractor (Schneider Electric) have completed the following:

o SCADA servers order placed. Estimated delivery date is early April. o Radio Network Design finalised. o Trio Q radio issues have been resolved. Firmware released.

Major issues • Delivery of the first third of the sites has been deferred to next financial year. A budget

reduction will be sought at the March budget review to reflect this.


Forecast ($) 1,311,453 Budget ($) 2,544,982 Expenditure ($) 452,307 ITD Expenditure ($) 527,549 Variance ($) 859,146 Remaining ($) 2,017,433 Variance (%) 66% Remaining (%) 79%



ITEM 9 (Continued) GOLD COAST WATER FINANCIAL PERFORMANCE AS AT 28 FEBRUARY 2015 FN334/252/15(P6) 5.9 Other Financial Activities 5.9.1 Community Service Obligations

In accordance with Sections 23 and 24 of the Local Government Regulation 2012: …The cost of carrying out community service obligations, less any revenue received from performing the obligations must be treated as revenue for the significant business activity. {Section 23} (and)

…A community service obligation is an obligation the local government imposes on a business entity to do something that is not in the commercial interests of the business entity to do. Example of a community service obligation – giving a price concession to a particular group of customers, including pensioners, seniors and students {Section 24} To date, no Community Service Obligations have been recorded within GCW’s accounts. No information is yet available with regard to the permanent discounting of infrastructure charges for “existing buildings”, “expansion” and “family accommodation” development applications. For the 2014-15 year to date, a total of $8,859 has been provided as a CSO in the form of waived infrastructure charges under the City’s Non-Profit Community Group Rebate system. 5.9.2 Water and Sewage Leakage Relief

The objective of this policy is to ensure a uniform and transparent application of relief from water consumption charges and sewage volumetric charges in cases of proven concealed leakage. As part of the December budget review the sewer remissions forecast was revised from $0.8m to $1.5m. Revenue Services continues to administer the Policy. The table below provides summary level detail of the leakage remissions approved for the period to February 2015. A total of 189 approvals were processed for the month of February, with remissions totalling $0.12 million for the month.

Table 4 – Summary of Concealed Leakage Remissions

Month Number of Approvals

Total Leak Volume (kl)

Average Loss per Account (kl)

Water Remission

Value ($)

Sewer Remission

Value ($)

Total Remission

Value ($)Jul-14 319 121,180 380 180,432 114,524 294,956

Aug-14 218 156,321 717 219,675 241,463 461,139 Sep-14 376 196,535 523 276,848 168,076 444,924 Oct-14 228 130,380 572 213,728 109,768 323,495 Nov-14 362 123,149 340 204,111 20,286 224,397 Dec-14 287 118,655 413 195,414 94,477 289,891 Jan-15 163 72,979 448 112,533 37,632 150,165 Feb-15 189 65,044 344 94,773 20,365 115,138

Total 2,142 984,243 459 1,497,515 806,590 2,304,105 Budget provided for year 2,700,000$ 1,500,000$ 4,200,000$ Proportion of budget approved to date 55.5% 53.8% 54.9%


ITEM 9 (Continued) GOLD COAST WATER FINANCIAL PERFORMANCE AS AT 28 FEBRUARY 2015 FN334/252/15(P6) As illustrated in Table 5 (below), 82% of applications approved to date are for residential customers, however by value, residential customers represent only 40% of the value of remissions provided for the year to date. Non-residential customers, whilst representing only 18% of the volume of applications approved, account for 60% ($1.39m) of the total value of remissions provided to date.

Table 5 – Summary of Concealed Leakage Remissions by Customer Type and Product

Table 6 (below), depicts the value of remissions provided in 2013-14 and 2014-15 (to date), together with a comparison of the number of applications processed each month.

Table 6 – Comparison of Concealed Leakage Remissions to prior year

The total quantity of remission applications processed to February 2015 is 15% higher than the same period last year and the total amount of remissions provided is 6% lower. The value of water remissions processed to February is approximately 23% lower than the value processed for the same period last year. A reduction in water remissions was anticipated as a result of the policy changes adopted by Council, which took effect 1 January 2014. The value of sewage remissions continues to exceed last year’s totals, with applications processed to February 2015 being 66% higher than the value of remissions processed for the same period last year. Of the remissions provided to customers, 30 customers have received remissions in excess of $10,000 each. These 30 remissions total $0.73m, which represents 32% of the total remissions provided. A listing of all properties that have received remissions in excess of $10,000 is provided at Confidential Attachment 2.

Customer Type Approvals Value of Remissions Provided# % Water ($) Sewer ($) Total ($) %

Residential CustomersOw ner Occupied premises 1,316 61% 738,864 - 738,864 32%Rental / Tourist Rental premises 442 21% 176,591 - 176,591 8%

Total Residential Customers 1,758 82% 915,455 - 915,455 40%Non-Residential Customers 384 18% 582,060 806,590 1,388,650 60%

2,142 100% 1,497,515 806,590 2,304,105 100%Proportion of Total Remission 65% 35%

Applications Cumulative TotalsProcessed July Aug Sept Oct Nov Dec Jan Feb2013-14 186 313 531 777 1,168 1,560 1,725 1,860 2014-15 319 537 913 1,141 1,503 1,790 1,953 2,142 % Increase 72% 72% 72% 47% 29% 15% 13% 15%

Remissions Cumulative TotalsProvided ($'000) July Aug Sept Oct Nov Dec Jan Feb13-14 Water 339.98 496.59 699.20 909.20 1,263.56 1,693.14 1,856.64 1,954.52 13-14 Sewer 15.58 100.05 205.48 270.38 347.99 416.24 475.03 487.25 Total 2013-14 355.57 596.64 904.67 1,179.59 1,611.56 2,109.38 2,331.67 2,441.77 14-15 Water 180.43 400.11 676.96 890.68 1,094.79 1,290.21 1,402.74 1,497.51 14-15 Sewer 114.52 355.99 524.06 633.83 654.12 748.59 786.23 806.59 Total 2014-15 294.96 756.09 1,201.02 1,524.51 1,748.91 2,038.80 2,188.97 2,304.11 % Movement -17% 27% 33% 29% 9% -3% -6% -6%


ITEM 9 (Continued) GOLD COAST WATER FINANCIAL PERFORMANCE AS AT 28 FEBRUARY 2015 FN334/252/15(P6) 5.9.3 Procurement Savings The table below reflects procurement savings that have been identified by the Chief Procurement Office on behalf of GCW for the period to February 2015. Procurement savings for January and February 2015 will be processed as part of the March budget review. All other procurement savings are incorporated in the current revised budget.

Table 7 – Summary of Procurement Savings

GCW’s budget process incorporates a total review of all capital works estimates, addressing actual contract costs. Accordingly, identified procurement savings are captured through this separate review process, rather than being specifically identified as procurement savings in the capital budget review. Capital procurement savings are recognised through the transfer to reserve. 5.10 Future Budgetary Trends Volumetric Revenue, Bulk Water Purchases and GCW Profit GCW has revised demand projections at the end of February 2015, in light of higher than anticipated rainfall which had occurred to that time. Changes in demand will impact on volumetric water and sewage revenue, bulk water purchases and subsequently flow through to GCW’s overall profit. The impacts of the revised demand forecast will be addressed as part of the March budget review. Since the demand forecast revision was undertaken, further substantial rainfall has occurred throughout March and early April. Should wet weather continue, there could be a further downward trend in water consumption. Capital Program Following a complete review of GCW’s proposed capital expenditure program, including review of delivery timeframes, an overall increase of $1.32m in anticipated capital expenditure for the 2014-15 year has been identified. This overall increase will be reflected in the March 2015 budget review. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Not Applicable.

Procurement Savings ($'m) July Aug Sept Oct Nov Dec Jan Feb Total

Operational 1.58 0.02 0.02 0.69 0.04 0.16 0.15 0.03 2.69

Capital 0.46 1.04 0.01 0.20 0.20 0.19 0.33 0.25 2.68

Total 2.04 1.06 0.03 0.89 0.24 0.35 0.48 0.28 5.37

Recoverable 0.002 0.005 0.005 0.007 0.061 0.004 0.08

Where operational procurement savings relate to Private or Recoverable Works, these savings are not reflected in budgetary movements.



Risk Number Description

Risk No. CO000435

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

7 COMMONWEALTH GAMES IMPACT There are no identified connections to the 2018 Commonwealth Games (GC2018). 8 FUNDING AND RESOURCING REQUIREMENTS Not Applicable. 9 RISK MANAGEMENT The following risk assessment applies to this report: 10 STATUTORY MATTERS Not Applicable. 11 COUNCIL POLICIES Gold Coast Water Capital Structure and Community Returns Policy Revenue Policy Gold Coast City Council Budget Review Policy 12 DELEGATIONS Not Applicable. 13 COORDINATION AND CONSULTATION

Name and/or Title of the Stakeholder Consulted



Peter Morichivitis Acting Director

Organisational Services

Yes

Cassandra Kenyon, Executive Coordinator Revenue Services


Marilyn Hildebrandt, Executive Coordinator Directorate Finances

Office of the CEO Yes

14 STAKEHOLDER IMPACTS Not Applicable.


ITEM 9 (Continued) GOLD COAST WATER FINANCIAL PERFORMANCE AS AT 28 FEBRUARY 2015 FN334/252/15(P6) 15 TIMING Not Applicable. 16 CONCLUSION GCW’s Earnings before Interest and Tax (EBIT) for the period to 28 February is currently 9% or $7.48m ahead of forecast. Major factors contributing to this result are:

• Depreciation – $0.15m favourable • Capital Revenues – $8.45m favourable • Flow-dependant expenses - $4.96m favourable • Controllable expenses - $0.77m favourable • Operating Revenues – ($6.85m) unfavourable

GCW continues to monitor performance and ensure controllable expenditure is minimised. This is achieved through rigorous internal processes which include detailed review of all projects to ensure only prudent and efficient expenditure is incurred. 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That attachment 2 be deemed a confidential document in accordance with sections

171 (3) and 200 (5) of the Local Government Act 2009 and that the document remain confidential unless Council decides otherwise by resolution.

2 That Council note the Gold Coast Water Monthly Financial Report for the period ended 28 February 2015.

Author: Authorised by: Karen O’Brien Paul Heaton Manager Business Performance Director Gold Coast Water 8 April 2015 TRACKS REF: #48179765 COMMITTEE RECOMMENDATION EWT15.0428.009 moved Cr Gilmore seconded Cr McDonald 1 That attachment 2 be deemed a confidential document in accordance with

sections 171 (3) and 200 (5) of the Local Government Act 2009 and that the document remain confidential unless Council decides otherwise by resolution.

2 That Council note the Gold Coast Water Monthly Financial Report for the period ended 28 February 2015.

CARRIED UNANIMOUSLY


Attachment 9.1 Detailed Income Statement

Full YearAct Initial

BudgetRevised Budget

Var Var Initial Budget

Revised Budget

Month ended 28 February 2015 $000's $000's $000's $000's % $000's $000'sRevenueService Charges 151,188 149,511 149,511 1,677 1 225,513 225,513Volumetric Charges 149,556 158,462 158,462 (8,906) (6) 235,150 235,150Less: Concealed Leakage (2,304) (2,359) (2,580) 276 11 (3,500) (4,200)Fees and Charges 3,541 3,355 3,516 25 1 5,040 5,412Interest Revenue 1,588 885 1,508 80 5 1,330 2,000Total Operating Revenue 303,569 309,854 310,417 (6,848) (2) 463,533 463,875Operating ExpenditureFLOW-DEPENDANT EXPENDITUREBulk Water Purchases 103,800 108,653 108,653 4,853 4 161,235 161,235Electricity 6,210 7,007 6,147 (63) (1) 10,510 9,204Biosolids Disposal 2,337 2,440 2,467 130 5 3,660 3,700Chemicals 1,799 2,212 1,840 41 2 3,319 2,871Total Flow-Dependant Expenditure

114,146 120,312 119,107 4,961 4 178,724 177,010

Operating Revenue net of Flow-Dependant Expenditure

189,422 189,542 191,310 (1,888) (1) 284,809 286,865

Gross Margin 0.7 0.6 0.6 0.7 0.7

CONTROLLABLE EXPENDITUREEmployee Expenses 26,294 26,897 26,432 138 1 40,345 39,825Services 12,116 13,606 12,433 317 3 20,409 20,756Consultants 184 1,543 509 325 64 2,315 2,029Materials 3,208 3,267 3,128 (80) (3) 4,900 4,752Council Corporate SLAs 13,190 13,190 13,190 (0) (0) 19,785 19,785Council Fleet and Plant 2,949 2,898 2,955 6 0 4,347 4,328Sew age Treatment Charge 2,152 2,138 2,138 (14) (1) 3,208 3,208Insurance Premiums 1,576 1,576 1,576 0 0 2,364 2,364Regulatory Expenses 205 360 273 68 25 540 545Other Expenditure 992 2,333 1,000 8 1 3,500 3,500Total Controllable Expenditure 62,866 67,808 63,634 768 1 101,713 101,092Total Operating Expenditure 177,012 188,120 182,741 5,729 3 280,437 278,102

Loss on Sale of Assets 0 3,333 0 0 0 5,000 5,000

Net Profit before Capital Revenue 126,556 118,401 127,676 (1,120) (1) 178,096 180,773

Capital RevenueDevelopers Contributions 25,638 13,315 17,179 8,459 49 20,000 25,000Contributions and Donations Received 323 333 328 (5) (1) 500 500Contributed Assets 0 13,480 0 0 0 20,000 20,000Total Capital Revenue 25,961 27,128 17,507 8,454 48 40,500 45,500

EBITDA 152,518 145,529 145,183 7,335 5 218,596 226,273

Depreciation 59,853 70,000 59,997 144 0 105,000 90,500

EBIT 92,665 75,529 85,186 7,479 9 113,596 135,773Interest Expense (QTC Loan) 2,370 2,370 2,370 (0) (0) 3,555 3,556Interest Margin Expense 588 588 588 0 0 881 881Shareholder Interest Expense 53,582 53,582 53,582 (0) (0) 80,374 80,374Income Tax Equivalents 10,055 9,685 10,092 37 0 19,293 24,012NPAT 26,069 9,304 18,554 7,515 41 9,493 26,950

Participation Return 0 0 0 0 0 0 0

Retained earnings impact after participation return

26,069 9,304 18,554 7,515 41 9,493 26,950

Year to DateGold Coast Water Income Statement

695th Council Meeting 17 March 2015 92 Engineering Water & Transport Committee Meeting 5 March 2015 Adopted Report

CLOSED SESSION LOCAL GOVERNMENT ACT 2009 AND SUPPORTING REGULATIONS PROCEDURAL MOTION moved Cr Owen-Jones seconded Cr Gilmore That the Committee move into Closed Session pursuant to section 275(1) of the Local Government Regulation 2012, for the consideration of the following item/s for the reason/s shown:-

Item Subject Reason

10 Stapylton Sewerage Catchment Servicing Strategy Contract proposed to be made by it.

CARRIED

PROCEDURAL MOTION moved Cr Owen-Jones seconded Cr Gilmore That the Committee move into Open Session.

CARRIED Following resumption into Open Session, Recommendation No EWT15.0428.010 was moved and carried as shown on the following pages.


ITEM 10 (Continued) STAPYLTON SEWERAGE CATCHMENT SERVICE LEVEL AGREEMENT WSS382/343/02/06(P1) CONFIDENTIAL COMMITTEE RECOMMENDATION EWT15.0428.010 moved Cr Owen-Jones seconded Cr Gilmore 1 That the report/attachment be deemed a confidential document and be treated as

such in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009 and that the document remain confidential unless Council decides otherwise by resolution.

2 That Council endorse the extension of sewage treatment services for the Stapylton Sewerage Catchment at the Beenleigh Sewage Treatment Plant in accordance with the proposed Service Level Agreement with Logan City Council at Attachment A.

3 That the Director Gold Coast Water be delegated the power to sign the SLA at Attachment A.

CARRIED UNANIMOUSLY


ITEM 11 GENERAL BUSINESS STREET FURNITURE AND LANDSCAPE UPGRADES FOR CHIRN PARK CITY MAKING PLACES PROJECT FN334/375/02(P31) COMMITTEE RECOMMENDATION EWT15.0428.011 moved Cr Crichlow seconded Cr Gates That $50,000 be allocated from Division 6 2014-15 Local Area Works for the Chirn Park City Making Places project to undertake street furniture and landscape upgrades to the strip shops located on Musgrave Avenue, Chirn Park (between Brooke and Kerr Avenue - CR243917) CARRIED UNANIMOUSLY There being no further business the meeting closed at 9.27am.


These Pages

Numbered 1 to 103

Constitute The Adopted Report Of The Meeting

Of The Engineering Water & Transport Committee

Held Tuesday, 28 April 2015