final minutes - mackay council · the purpose of this report is to propose an extension of time for...

FINAL MINUTES

22 May 2013

FINAL MINUTES WEDNESDAY 22 MAY 2013

MIN/22.05.2013 FOLIO 27555

Table of Contents

Folio Date Particulars 27556 22.03.2013 Ordinary Meeting Minutes 27582 30.04.2013 Executive Financial Performance Report to 30 April 2013 27628 30.04.2013 Corporate Services Monthly Review - April 2013 27642 30.04.2013 Water Services Monthly Review - April 2013 27673 30.04.2013 Waste Services Monthly Review - April 2013 27690 22.05.2013 Councillors Portfolio Appointments and Committee

Representation

Declaration of Potential Conflict of Interest

Nil.


MIN/22.05.2013 FOLIO 27556

ORDINARY MEETING MINUTES

1. ATTENDANCE:

Her Worship the Mayor, Cr D T Comerford (Chairperson), Crs K J Casey, C J Bonanno, L G Bonaventura, F A Gilbert, A N Jones, T A Morgan, D J Perkins, P F Steindl, and R D Walker were in attendance at the commencement of the meeting. Also present was Mr B Omundson (Chief Executive Officer) and Mrs M Iliffe (Minute Secretary).

The meeting commenced at 10.00 am.

2. ABSENT ON COUNCIL BUSINESS:

Nil

3. APOLOGIES:

Cr G J Martin

4. CONDOLENCES:

5. CONFIRMATION OF MINUTES:

5.1 ORDINARY MEETING MINUTES 15 MAY 2013

THAT the Minutes of the Ordinary Meeting held on 15 May 2013 be confirmed.

Moved Cr Casey Seconded Cr Jones

CARRIED

6. BUSINESS ARISING OUT OF MINUTES OF PREVIOUS MEETING:

Nil


MIN/22.05.2013 FOLIO 27557

7. MAYORAL MINUTES:

Nil

8. CORRESPONDENCE AND OFFICERS’ REPORTS:

8.1 EXECUTIVE FINANCIAL PERFORMANCE REPORT TO 30 APRIL 2013

Author Director Corporate Services

Purpose

To present the Executive Financial Performance Report to 30 April 2013.

Background/Discussion

As at 30 April 2013 Council's Operating Revenue totalled $264,246,812 and Operating Expenditure totalled $247,425,847. Total Capital Expenditure including NDRRA equals $146,524,213. Operating revenue is above budget on a pro-rata basis. A brief comment on each component follows:

Rates and Utility Charges - apart from Water, where the second billing is yet to occur the annual budget has been achieved or exceeded.

Fees and Charges - annual budget has been exceeded largely through annual fees and

increased demand for services such as bulk water sales and plumbing inspections.

Sales - Contract and Recoverable Work - above budget predominately due to water and sewerage recoverable works.

Grants and Subsidies - below budget due to the timing of receipt of large NDRRA

grants, these are dependent on the completion of projects. Also below budget due to the timing receipt of the Financial Assistance Grant and community grants.

Interest Earned - well above budget due to interest earned on reserve funds held, offset

by transfers to reserves, to assist in retaining the purchasing power of reserve funds.

Other Revenue - slightly below budget at this stage due to lease fees and MECC income being less than anticipated.

Operating expenditure is slightly above budget on a pro-rata basis. Comments are:

Employee costs - slightly below budget due to some vacancies.

Goods and services - below budget due to the timing of large contract payments.


MIN/22.05.2013 FOLIO 27558

Finance costs - below YTD budget due to the timing of the quarterly loan payment.

Other expenses - well above budget due to the timing of annual insurance premiums,

and legal expenses being higher than anticipated. Capital expenditure excluding committals is currently at 56% (74% excluding NDRRA) on annual budget which includes the 2011/2012 carryovers. It is noted however that if non-cash contributions and loan repayments are also excluded, the actual capital delivery is approximately 54%. It should be noted that figures provided are accurate as at the date of publication. Figures reported are cumulative year to date which may include adjustments for revenue or expenses accrued to prior accounting periods. Depreciation estimates for the month are based on a percentage of the annual budget until the final calculations are undertaken at year end.

Consultation and Communication

Management Team.

Resource Implications

Nil.

Risk Management Implications

Nil.

Conclusion

Overall figures indicate that Council is tracking close to budget on a pro-rata basis, whilst noting the timing differences mentioned above. The timing of capital delivery continues to lag behind year to date estimates.

Officer's Recommendation

THAT the Executive Financial Performance Report to 30 April 2013 be received. Council Resolution

THAT the Officer's Recommendation be adopted. Moved Cr Walker Seconded Cr Bonanno

CARRIED


MIN/22.05.2013 FOLIO 27559

8.2 CORPORATE SERVICES MONTHLY REVIEW APRIL 2013

Author Director Corporate Services

Purpose

To review the attached Corporate Services Monthly Review for April 2013.


THAT the Corporate Services Monthly Review for April 2013 be received. Council Resolution

THAT the Officer's Recommendation be adopted. Moved Cr Walker Seconded Cr Perkins

CARRIED

8.3 EXTENSION OF APPOINTMENT FOR EXTERNAL MEMBERS OF AUDIT ADVISORY COMMITTEE

Author Executive Manager Governance & Finance

Purpose

The purpose of this report is to propose an extension of time for the current external members of Mackay Regional Council's Audit Advisory Committee.


Under section 105(2) of the Local Government Act, Mackay Regional Council is required to have established an Audit Committee. The Local Government Regulation 2012 stipulates that the Audit Advisory Committee must consist of at least three (3) and no more than six (6) members, and include two (2), but no more than two (2), Councillors appointed by the Local Government. There must also be at least one (1) member who has significant experience and skills in financial matters. The Chief Executive Officer cannot be a member of the Audit Committee but can attend meetings of the committee. The current Audit Advisory Committee was formed in January 2011, with the external members being appointed for an initial period of two years. The current external members are Mr Hayden Wright, Mr Mark Bushell and Mr Roy Peterson. At the last Audit Advisory Committee meeting it was suggested that the current term of the external members be extended to June 2013, and that expressions of interest be re-advertised for the period post June 2013.


MIN/22.05.2013 FOLIO 27560


Audit Advisory Committee and Chief Executive Officer.


Nil - Budget currently exists. The meeting fees are currently set at $1,500 per meeting with reasonable expenses also reimbursed. These fees are due to be reviewed.


Nil

Conclusion

It is recommended that Council extend the appointment of the external members of the Audit Advisory Committee to 30 June 2013.

It is also recommended that Council call expressions of interest from suitably qualified persons to fill 'external member' positions of the Audit Committee.


THAT Council extend the appointment of Mr Hayden Wright, Mr Mark Bushell, and Mr Roy Peterson as independent members of the Audit Advisory Committee to 30 June 2013. AND THAT Council call expressions of interest from suitably qualified persons to fill 'external member' positions of the Audit Committee.

Council Resolution

THAT the Officer's Recommendation be adopted. Moved Cr Walker Seconded Cr Gilbert

CARRIED


MIN/22.05.2013 FOLIO 27561

8.4 WATER & WASTE SERVICES MONTHLY REVIEWS - APRIL 2013

Author Director Water & Waste Services

Purpose

To provide Council with Water & Waste Services Monthly Reviews for the period ending 30 April 2013.


THAT the Monthly Performance Reviews be received.

Council Resolution

THAT the Officer's Recommendation be adopted. Moved Cr Gilbert Seconded Cr Bonaventura

CARRIED

8.5 COUNCILLOR PORTFOLIO APPOINTMENTS AND COMMITTEE REPRESENTATION

Author Chief Executive Officer

Purpose

At the Ordinary Meeting of 6 June 2012 it was recommended that in 12 months time a review be undertaken of the allocation of Councillor Portfolio Areas to differing aspects of Council services, and also to review the appointment of Councillors to different Rural Portfolio Areas.


The appointment of Portfolio Areas for Councillors enables specific concentrated interest to be given to different aspects of services delivered by Council. As a large Regional Council, it is very difficult for all Councillors to be across every aspect of each operation of Council. By the allocation of a Portfolio Area, it enables Councillors to focus interest in certain aspects and in doing so be able to provide a better standard of information and service to residents. Under such an arrangement, residents are still able to contact any Councillor with any issue, however those Councillors holding the particular Portfolio related to the matter are better positioned to provide an immediate and informed response. Presently Councillors hold the following Portfolio Areas –


MIN/22.05.2013 FOLIO 27562

Councillor Portfolio Area

Mayor Cr Deirdre Comerford Emergency Management

Cr Alison Jones Community Development & Libraries Cr Chris Bonanno Festival, Events & The Arts Cr Ross Walker Finance & Technology Cr Theresa Morgan Parks & Environment Cr Dave Perkins Planning & Development Deputy Mayor Cr Kevin Casey Roads & Drainage Cr Paul Steindl Sports, Recreation & Facilities Cr Greg Martin Tourism & Economic Development Cr Laurence Bonaventura Waste, Health & Regulatory Cr Frank Gilbert Water & Sewerage

Under the Portfolio Area system, Councillors are able to better concentrate on specific Rural geographical areas and build up an experience and knowledge base of these areas. Like the Portfolio Area system, residents from any Rural area are able to contact any Councillor with any issue, however those Councillors appointed to their geographical area are better positioned to provide an immediate and informed response. The present Councillor for each Rural Portfolio Area is –

Councillor Rural Portfolio Area

Cr Alison Jones Yalboroo North (Bloomsbury/Midge Point) Cr Chris Bonanno South of Sarina (Armstrongs Beach, Koumala, Swayneville,

Sarina Range) Cr Ross Walker Marian/Mirani Cr Theresa Morgan Calen/Kuttabul/Seaforth and beaches/Hampden Cr Dave Perkins Upper Pioneer Valley (Gargett to Eungella) Deputy Mayor Cr Kevin Casey

Homebush, Eton and McEwans Beach

Cr Paul Steindl Sarina Beaches Cr Greg Martin Sarina Urban Cr Laurence Bonaventura Farleigh/Habana/The Leap Cr Frank Gilbert Walkerston, Alexandra, Pleystowe, Greenmount, Wallingford

Councillors also discussed changes to Committee Representation. An amended list is attached to this report.


Mayor and Councillors.


NIL.


MIN/22.05.2013 FOLIO 27563


NIL.

Conclusion

Councillors have discussed the matter and concluded that they will remain in their current Portfolio Areas and Rural Portfolio Areas as allocated until 30 June 2014. Adoption of these Portfolio allocations is recommended.


THAT Councillors remain in the following Portfolio Areas and Rural Portfolio Areas until 30 June 2014, at which time the situation will be reviewed –

Councillor Portfolio Area

Mayor Cr Deirdre Comerford Emergency Management

Cr Alison Jones Community Development & Libraries Cr Chris Bonanno Festival, Events & The Arts Cr Ross Walker Finance & Technology Cr Theresa Morgan Parks & Environment Cr Dave Perkins Planning & Development Deputy Mayor Cr Kevin Casey Roads & Drainage Cr Paul Steindl Sports, Recreation & Facilities Cr Greg Martin Tourism & Economic Development Cr Laurence Bonaventura Waste, Health & Regulatory Cr Frank Gilbert Water & Sewerage

Councillor Rural Portfolio Area

Cr Alison Jones Yalboroo North (Bloomsbury/Midge Point) Cr Chris Bonanno South of Sarina (Armstrongs Beach, Koumala,

Swayneville, Sarina Range) Cr Ross Walker Marian/Mirani Cr Theresa Morgan Calen/Kuttabul/Seaforth and beaches/Hampden Cr Dave Perkins Upper Pioneer Valley (Gargett to Eungella) Deputy Mayor Cr Kevin Casey

Homebush, Eton and McEwans Beach

Cr Paul Steindl Sarina Beaches Cr Greg Martin Sarina Urban Cr Laurence Bonaventura

Farleigh/Habana/The Leap

Cr Frank Gilbert Walkerston, Alexandra, Pleystowe, Greenmount, Wallingford

AND THAT the changes to the Committee Representation attached be adopted.


MIN/22.05.2013 FOLIO 27564

Council Resolution

THAT the Officer's Recommendation be adopted. Moved Cr Casey Seconded Cr Bonanno

CARRIED

9. CONSIDERATION OF COMMITTEE REPORTS:

Nil

10. RECEIPT OF PETITIONS:

Nil

11. TENDERS:

11.1 TENDER: MRC 2013-056 PROVISION OF AQUATIC FACILITIES MANAGEMENT - PIONEER AND MEMORIAL SWIM CENTRES

Author Manager Recreation Services

Purpose

To present to Council for approval, tenders submitted for MRC 2013-056 Provision of Aquatic Facilities Management- Pioneer and Memorial Swim Centres.


Mackay Regional Council's adopted OSSR Strategy 2010 - 2016 acts as the principal document for the direction and development of aquatics, open spaces, sports and recreation. Councillors have been informed on the background and progress of this strategy in Council briefings held in August and September 2012. In accordance with outcomes of these briefings, Council determined to progress on the strategy's recommendations to ensure the needs and expectations of the Mackay regional community are met and to support the future planning and development of aquatic facilities. One of the recommendations relates to exploring market opportunities and inviting expressions of interest for a professional, experienced aquatic facility operator(s) to manage one, several or all of Council's pools. Consequently, on the 26th September 2012 Council resolved to call expressions of interest from professional, experienced aquatic facility operator(s) to manage the Memorial and Pioneer


MIN/22.05.2013 FOLIO 27565

Swim Centres in accordance with now superseded Section 177(3) of the Local Government (Finance, Plans and Reporting) Regulation 2010. Expressions of interest were called on 6th October 2012, via Council’s website and advertised in the Daily Mercury and Courier Mail with the intention of forming a shortlisted panel of providers from which tenders may be sought. On the 30th January 2013 Council resolved THAT the following respondents be shortlisted in response to MRC 2013-040 Request for Expressions of Interest – Management of Mackay Regional Councils Aquatic Facilities – Pioneer and Memorial Swim Centres with the intention of calling tenders in accordance with section 228 (6a) of the Local Government Regulation 2012.

BlueFit Leisure Pty Ltd Casa Leisure Lane 4 Aquatics Mr Matthew Kent The Young Men’s Christian Association of Brisbane (YMCA)

Tenders were invited from the shortlisted panel on the 16th February 2013 via Council’s website for the Provision of Aquatic Facilities Management- Pioneer and Memorial Swim Centres. During the tender period correspondence was received from Mr Matthew Kent on 8th March 2013 advising of a change to his trading name to LTS Leisure Pty Ltd. The following submissions were received by the closing date 19th March 2013:

Casa Leisure Lane 4 Aquatics LTS Leisure Pty Ltd (Mr Matthew Kent)

An initial compliance check was conducted by the Evaluation Panel on 18th March 2013 to identify submissions that were non-conforming with the immediate requirements of the Request for Tender (RFT). This included compliance with contractual requirements and provision of requested information.

All submissions were progressed through to the tender criteria assessment on the basis that all terms and conditions and mandatory requirements of the RFT had been met.

During the evaluation, tenderers were assessed against the nominated in the RFT evaluation criteria. The weighting attributed to each criteria was:

a) Price and Value - 30% b) Key personnel skills and experience - 20% c) Tenderers’ level of vision, additional services offered and innovation - 20% d) Demonstrated ability to safely and professionally manage Aquatic Facilities - 20% e) Local Content - 10%


MIN/22.05.2013 FOLIO 27566

After the initial evaluation meeting, a Tender Information Request 1 (TIR) was issued to CASA Leisure Pty Ltd and LTS Leisure Pty Ltd requesting clarification of information included in their tender in regards to transition plans and qualitative criteria.

TIR 2 was issued to LTS Leisure Pty Ltd in regards to the confirmation of pricing under the two payment schedules included in the RFT.

All responses were received within the required timeframes. The annual lease fee/payment submitted by each tenderer are listed below.

Tenderer Annual Lease payment for

Pioneer and Memorial Swim Centres (Excluding GST)

Casa Leisure 845,000.00 Lane 4 Aquatics 220,000.00 LTS Leisure Pty Ltd (Mr Matthew Kent)

- 50,000.00

In addition to the provisions allowed for inclusion and exclusions of operational expenditure stipulated in the RFT, it was evidenced during the assessment of the pricing submitted that additional pricing qualifications were included within in a number of submissions. CASA Leisure's tender price was subject to increases in lease amount payable based on the Australian Bureau of Statistics Consumer Price Index (CPI), insurance premium increases and also if previous years entrance figures used within the RFT for information purposes were not maintained. Lane 4 Aquatics' tender allowed for a reduction from the first years lease from $220,000 per annum to $200,000 excluding GST for subsequent years of the term of the lease. LTS Leisure Pty Ltd's tender was based upon an annual payment to Council with no qualifications or provisions for reduction in annual lease payment. In addition to the annual lease payments options were included in both Lane 4 Aquatics and LTS Leisure Pty Ltd's tender for capital contributions for future infrastructure at the Pioneer Swim Centre.

Following a second evaluation on 8th April 2013 a meeting was requested with LTS Leisure Pty Ltd on the 24th April 2013, as allowed under the Conditions of Tender to confirm the information supplied in their tender.

At the completion of the evaluation the panel considered the offer from LTS Leisure Pty Ltd (Mr Matthew Kent) not only satisfied the required experience, demonstrated vision and strategic view in offering the services but also provided the best commercial return due to income being generated from these facilities which off-sets against the on-going operational costs not covered by the lease.


MIN/22.05.2013 FOLIO 27567


Council has been informed on the background and progress associated with the OSSR Strategy 2010 – 2016 in Council briefings held in August and September 2012. In addition, Council was briefed in regards to the REOI submissions on 5th December 2012 and details of the tender submissions on 1st May 2013. Council aquatic staff were informed about calling expressions of interest prior to the 26th September 2012 report coming to Council and have continuously been updated about the REOI process through various communications. Outcomes of the 1st May 2013 briefing to Council were specifically discussed with Recreation Services program staff on Friday 3 May at Pioneer Swim Centre, involving Portfolio Councillor Sport, Recreation and Facilities, Director Community Services, Manager Recreation Services and United Voice Union Organiser. Aquatic staff were also sent a letter on 13th May 2013 stating Council's desire to continue with processes to adopt the change from in-house management to outsourcing in the public interest, including appointment of the successful contractor. Relevant unions have been notified throughout the process as per the terms of reference of the Mackay Regional Council Certified Agreement 2011. A letter was sent to relevant unions on 13th May 2013 highlighting Council's desire to contract out the management of Memorial and Pioneer Swim Centres, including measures put in place to minimise adverse effects of the change on employees. Extensive communication also took place with the Director Community Services.

The evaluation of the tenders was conducted by:

Director Community Services Manager Recreation Services Manager Procurement and Plant


Council's total subsidy required to manage Memorial and Pioneer Swim Centres through LTS Leisure Pty Ltd will be reduced by approximately $400,000 per annum based on 12/13 financial year income/expenditure under the lease management model.


Local governments manage aquatic facilities through various management models, including direct council management and lease management. It is not uncommon for local government to change management models over time and even revert to previous models to meet particular objectives. Although both models have potential advantages and disadvantages, Council becomes more removed from the control of day-to-day operation of the facility, including programming, recruitment and overall quality control.

Conclusion

That awarding the contract to LTS Leisure Pty Ltd represents the most advantageous outcome to Mackay Regional Council based on the ability to perform the services requested and the demonstrated value for money.


MIN/22.05.2013 FOLIO 27568


THAT the tender submitted by LTS Leisure Pty Ltd of $50,000 (Excluding GST) per annum payable to Council be accepted for MRC 2013-056 Provision of Aquatic Facilities Management - Pioneer and Memorial Swim Centres for a lease term of five (5) years with options for Council to extend the Term twice for up to two years at a time and one additional term for one year, on the same terms.

Council Resolution

THAT the Officer's Recommendation be adopted. Moved Cr Steindl Seconded Cr Morgan

CARRIED

11.2 MRC 2013-045 PROVISION OF DEBT MANAGEMENT SERVICES

File No MRC 2013-045 Provision of Debt Management Services Author Manager Financial Services

Purpose

To present to Council for approval, tenders submitted for MRC 2013-045 Provision of Debt Management Services.


Council is seeking the services of a suitably resourced and experienced company to act on the behalf of the Council in relation to the collection of outstanding rates and charges and sundry debtors. Council collects approximately $198.8 million in rates revenue from 49,500 rating assessments. Rates are levied half yearly in August and February of each financial year. Approximately 38,500 water consumption accounts are issued on the same assessments in late October and late April. All notices are due 30 days after the issue date. The rates collection cycle is based around the due date of the rate levies. Approximately one week after the due date a reminder notice is issued to any ratepayer who has not paid or made an arrangement to pay their rates, requesting payment within 14 days. If no response is received an assessment is made and accounts showing a balance above a nominated value each half year, are selected and handed to collection agents for further action. A small number of sundry debtors and unpaid licence fees are also referred on an ad-hoc basis.


MIN/22.05.2013 FOLIO 27569

In the 2011-2012 financial year 3,664 assessments were referred to our collection agents for further action. Of these, 884 had legal action commenced with 149 proceeding to judgement and 92 of these having enforcement action taken to finalise the legal actions. Tenders were invited on the 23rd February 2013, via Council’s website and advertised locally in the Daily Mercury for the Provision of Debt Management Services. The following submissions were received by the closing date 19th March 2013: Austral Mercantile Collections Australian Receivables Ltd Collection House Limited Dun & Bradstreet (Australia) Pty Ltd Hemming + Hart Lawyers Integrity Debt Management Pty Ltd Jones Heard King Lawyers Pty Ltd Macrossan & Amiet Pty Ltd Propel Partnerships Recoveries and Reconstruction (Aust) Pty Ltd Results Legal Pty Ltd Robinson Locke Litigation Lawyers Pty Ltd Rostron Carlyle Solicitors An initial compliance check was conducted by the Evaluation Panel on 28th March 2013 to identify submissions that were non-conforming with the immediate requirements of the Request for Tender (RFT). This included compliance with contractual requirements and provision of requested information. All submissions were progressed through to the qualitative criteria assessment on the basis that all terms and conditions and mandatory requirements of the RFT had been met. During the evaluation, tenderers were assessed against the nominated qualitative criteria. The weighting attributed to each qualitative criteria was: Relevant Experience - 25% Key personnel skills and experience - 25% Tenderers’ Resources - 20% Demonstrated Understanding - 20% Local Content - 10% After the initial evaluation meeting, a Tender Information Request (TIR) was issued to Recoveries and Reconstruction (Aust) Pty Ltd requesting they provide further details in relation to their Qualitative Criteria to enable evaluation of their submission. Additional TIR’s were issued to Australian Receivables Ltd, Collection House Limited, Integrity Debt Management Pty Ltd, Propel Partnerships and Recoveries and Reconstruction (Aust) Pty Ltd clarifying pricing schedule details.


MIN/22.05.2013 FOLIO 27570

The Evaluation Panel were required to consider the structure of this tender in relation to the fees associated with legal action being a recoverable cost to Council, as per the court nominated fee scale. The pricing comparison was prepared utilising the submitted prices from each tenderer. Tenderers provided a price on a per service basis. To enable comparison on an annual basis the 2012 calendar years actual referral data was used as this represents the most current available data. Where pricing was omitted within the Pricing Schedule - General or Costs on the Sale of Parcels for Overdue Rates Schedule, the highest tendered price were applied. As a result of the above application Hemming & Hart received the lowest price score, closely followed by Recoveries and Reconstruction, Australian Receivables Limited and Collection House.

Hemming & Hart have applied a rebate to Council of 25% of the applicable Magistrates Court Scale which provides a saving to Council. The company however scored the lowest on the quality scale due to the debt management function of their business being a new enterprise. Reference is made to the previous debt management function that was operated under their services, however this has previously been sold and they are now re-establishing their operations. Key personnel detail provided are for high level legal services with reference to only one collection staff included. At the completion of the evaluation process, the respondents with the highest combined quality/price scores based on their demonstrated vast experiences servicing Local Government Authorities were Collection House Limited. In addition, Collection House Limited further demonstrated a comprehensive understanding of Council's requirements having previously serviced Mackay Regional Council and has a dedicated in-house legal department to service their debt management functions. Their submission outlines highly skilled and experienced staff which demonstrates the ability to ensure resources are always available to service Council's requirements. Collection House Limited currently provide debt management services to Mackay Regional Council's largest neighbouring Councils in Townsville City and Rockhampton Regional Council.


The evaluation of the tenders was conducted by: Revenue Services Coordinator – Financial Services Senior Revenue Officer – Financial Services Contracts Officer – Procurement and Plant


Nil within current budget limits and costs are generally recoverable.


Nil


MIN/22.05.2013 FOLIO 27571

Conclusion

That awarding the contract MRC 2013-045 Provision of Debt Management Services to Collection House Limited for the period of two (2) years with the option of a one (1) year extension, represents the most advantageous outcome to Mackay Regional Council based on the ability to perform the works requested and the demonstrated value for money.


THAT the schedule of rates tender submitted by Collection House Limited be accepted for the provision of MRC 2013-045 Provision of Debt Management Services for the term of two (2) years with the option of a one (1) year extension.

Council Resolution

THAT the Officer's Recommendation be adopted. Moved Cr Walker Seconded Cr Morgan

CARRIED

11.3 MRC 2013-008 SHAKESPEARE STREET REHABILITATION

File No MRC 2013-008 Shakespeare Street Rehabilitation Author Manager Civil Projects

Purpose

To present to Council for approval, tenders submitted for the road rehabilitation contract MRC 2013-008 Shakespeare Street Rehabilitation.


Mackay Regional Council is seeking to undertake road rehabilitation works on a section of Shakespeare Street, from Grant to Porter Streets in Mackay. This project was initiated approximately 18 months ago in order to address the issue of pavement deterioration resulting from the extreme weather events. This initial planning involved extensive consultation prior to the finalisation of the detailed design plans. Tenders were invited on the 16th February 2013, via Council’s website and advertised locally in the Daily Mercury. The following submissions were received by the closing time of 10.00am 26th March 2013: a) BMD Urban Pty Ltd b) Colemans Group (Aust) Pty Ltd


MIN/22.05.2013 FOLIO 27572

c) Doval Constructions (Qld) Pty Ltd d) Epoca Constructions Pty Ltd e) Shamrock Civil Engineering Pty Ltd f) Vassallo Constructions Pty Ltd g) Winslow Constructors Pty Ltd An initial compliance check was conducted by the Evaluation Panel on 4th April 2013 to identify submissions that were non-conforming with the immediate requirements of the Request for Tender (RFT). This included compliance with contractual requirements and provision of requested information. Tender Information Requests (TIR's) were issued to Shamrock Civil Engineering Pty Ltd, Colemans Group (Aust) Pty Ltd and Winslow Constructors Pty Ltd seeking clarification on pricing within their submitted Schedule of Rates Pricing. All other submissions were progressed through to the qualitative criteria assessment on the basis that all terms and conditions and mandatory requirements of the RFT had been met. During the evaluation, tenderers were assessed against the nominated qualitative criteria. The weighting attributed to each qualitative criteria was: a) Relevant Experience 15% b) Key personnel skills and experience 15% c) Demonstrated Understanding 20% d) Tenderers' Price 40% e) Local Content 10% The tendered Schedule of Rates Prices are listed below, excluding GST: BMD Urban Pty Ltd $7,378,190.29 Colemans Group (Aust) Pty Ltd $5,942,235.00 Doval Constructions (Qld) Pty Ltd $7,452,475.00 Epoca Constructions Pty Ltd $8,588,438.00 Shamrock Civil Engineering Pty Ltd $6,805,388.00 Vassallo Constructions Pty Ltd $8,961,157.22 Winslow Constructors Pty Ltd $6,276,611.00 The qualitative criteria assessment was carried out by the Evaluation Panel on 18th April 2013, with the Evaluation Panel scoring the tenders according to the evaluation matrix. All applicants were assessed against the qualitative selection criteria. Specific criteria were weighted according to their importance as perceived and agreed by the Evaluation Panel. Relative weightings were published within the RFT. A further Tender Information Request was issued to Winslow Constructors Pty Ltd to clarify details contained in their submission. The TIR response was received and considered by the evaluation panel.


MIN/22.05.2013 FOLIO 27573

A key evaluation Criteria relates to previous experience and demonstrated understanding. The evidence provided by the cheapest tenderer, Colemans Group (Aust) Pty Ltd, of relevant experience and demonstrated understanding of the project was rated lower when compared to others tenderers due to limited projects which demonstrate their experience in managing complex civil project of a similar nature. In particular their work item for management of traffic within the schedule was considered abnormally low when compared with other tenderers. Winslow Constructors Pty Ltd's submission, demonstrated a comprehensive understanding of Council’s requirements. This coupled with their extensive previous experiences on projects of a similar nature and projects with an extremely large emphasis on managing high volumes of traffic, lead the Evaluation Panel to a decision that awarding the contract to Winslow Constructors Pty Ltd would provide council with the most advantageous outcome in terms of proven quality of works and reducing councils potential level of risk.


The evaluation of the tenders was conducted by:

Technical Officer – Civil Projects Manager – Civil Projects Contracts Officer – Procurement and Plant Council officers have undertaken intensive consultation during the various phases of the project. The initial consultation related to development of the concept and design with subsequent phases related to development of conditions for traffic management during construction. On appointment of a contractor the intention is to work with the contractor on their traffic management and works construction program and then to re visit the directly affected stakeholders prior to construction works commencing. Regular updates will also be provided to directly affect stakeholders and the wider community through a variety of mechanisms.


MRC 2013-008 Shakespeare Street Rehabilitation

Expenses

Description Amount $ Notes

Expenditure to Date 11/12 & 12/13

74,265.84 Design and geotechnical works

Commitments 12/13 11,445.07 Contract Price 6,276,611 Winslow Constructors Pty Ltd Contingency 630,000 Allow approx10% of contract price Below the line cost 600,000 Services, materials, design and Geotechnical. Contract Administration 300,000


MIN/22.05.2013 FOLIO 27574

Cost to Complete 7,892,322 Rounded

Budget Description Amount $ Notes

NDRRA eligible amount 4,488,792This amount represents the evaluated NDRRA eligible items based on the tendered amounts

NDRRA portion of eligible contingency 380,000 Assumed based on the ratio of project cost eligibility

Capital 11/12 250,000.00 Rates Allocation Capital 12/13 500,000.00 Rates Allocation

Capital 13/14 250,000.00Rates budget allocation transferred to Capital Improvements Reserve in September 2012 Budget Review to be re-budgeted in 13/14

Complimentary Funding 398,000Original approval was for $1,398,000 which included the $1M Capital.

Total Budget 6,266,792

BALANCE (1,625,530) Deficit

In order to meet the additional costs associated with this very significant project, funding will need to be provided from within the existing Capital Works Program for 2013/14. The issues that have been considered in determining which 2013/14 project to defer includes project timing, preliminary service relocations required, finalisation of funding models and engagement with stakeholders and also the question of funds required. As such, it is proposed to defer the Malcomson Street and Greenfields Boulevard intersection works where Council's contribution of $2 Million was to be funded in 2013/14. It is proposed that $1,700,000 be allocated to the Shakespeare Street rehabilitation project and the remaining $300,000 be retained for the Malcomson Street and Greenfields Boulevard intersection in order to facilitate finalisation of the detailed design and initiate some service relocation works.


There are a number of risks for Council for this project. Currently there is a potential funding shortfall of $1.6M. A significant portion of this relates to lining of the old Brick drain that is to be lined in conjunction with the road project. The road cannot be constructed without first lining the drain as it will likely be damaged by construction equipment. Currently under the guidelines this drain lining is not eligible and would not receive funding from NDRRA. Councils NDRRA personnel are discussing this issue with the QRA with the aim of seeking an exemption on the grounds that the road rehabilitation cannot occur unless the drain is lined. Should this exemption request be denied Council will be required to fund the drain lining. This would require the re-prioritisation of funding in 2013/14 as outlined previously in this report. The selected contractor has not worked for Council previously but has extensive experience in major projects in South East Queensland and also interstate. Based on the past experience and proposed personnel the contractor should have the capacity and skill set to undertake the works successfully.


MIN/22.05.2013 FOLIO 27575

Conclusion

That awarding the contract to Winslow Constructors Pty Ltd represents the most advantageous outcome and demonstrated value for money to Mackay Regional Council based on their demonstrated understanding of Council’s requirements, their experience, capacity and resources to provide the services to the specified quantity and quality as specified in the RFT.


1. THAT the re-measurable schedule of rates tender submitted by Winslow Constructors Pty Ltd of $6,276,611.00 (excluding GST) be accepted for the provision of MRC 2013-008 Shakespeare Street Rehabilitation.

2. THAT the funds required to complete the project be made available within the

2013/14 Capital Works Program by deferring a major proportion of the Malcomson Street and Greenfields Boulevard intersection upgrade (ie: $1,700,000).

Council Resolution

THAT the Officer's Recommendation be adopted. Moved Cr Casey Seconded Cr Perkins

CARRIED

12. CONSIDERATION OF NOTIFIED MOTIONS

Nil

13. LATE BUSINESS:

13.1 WAVERLEY CREEK REST AREA

Cr Bonanno advised the 3 day event being held at the Waverley Creek Rest Area by RAAG, Councils and the State members will conclude today. Over the 3 day event community people, RAAG staff and Councillors assisted in interviewing and conducting surveys of heavy vehicle drivers using this rest area.

13.2 MACKAY NORTH TREATMENT PLANT

Cr Gilbert advised that there was an illegal dumping of oil and grease into the sewage system which as caused issues with the Mackay North Treatment Plant processing ability. Staff have been able to track the contaminants back to the Harbour area and Council will be further investigating this matter. If the offenders can be ascertained Council will look at prosecution,


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as not only has this illegal dumping caused damaged the environment and the sewage system there have been costs to ratepayers.

13.3 COUNCILLORS 1ST ANNIVERSARY

The current Council celebrated its first anniversary with several first time Councillors and some Councillors from the previous Councils acknowledging their first year serving the Mackay Region. Cr Steindl also advised the Mayor was celebrating her 15th year of service with Council this week.

13.4 ROUND 3 RDA FUNDING - EDWARD LLOYD PARK

Funding has been approved under Council's Regional Development Australia Round 3 application (through the Department of Regional Australia, Local Govt, Arts & Sports). This will be used for the construction of new playground facilities and associated infrastructure along the riverfront at Edward Lloyd Park located in the town of Marian. This will provide the community of Marian and surrounding towns with a much needed social facility to serve the lifestyle needs of the communities.

13.5 WEEKEND EVENTS

Mackay Amateur Racing Day

On Saturday 25 May 2013 the Mackay Amateur Racing will celebrate 100 years of racing. Annual Greenmount Heritage Fair On Sunday 26 May 2013 Greenmount will again be hosting the Annual Greenmount Heritage Fair which is free entry and fun for all the family. Citizenship Ceremony The largest citizenship ceremony on record will be held on Sunday at the Greenmount Heritage Fair with 174 new citizens taking part in the ceremony.


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Relay for Life The Relay for Life will be holding their event this week-end at Slade Point and will be celebrating their 10th birthday for this very worthwhile event.

13.6 MAYORS 2013 CHARITY BALL

The Mayors 2013 Charity Ball organised by the Rotary Club Sunrise raised approximately $42,000 for charity and Council acknowledged the success of this event.

14. PUBLIC PARTICIPATION:

Mrs Mavis Coxon of Walkerston expressed her concern that the consultants Council used to determine if fluoride should be added to the drinking water all had their own agenda. Another concern Mrs Coxon raised was the recent incident which occurred at the water treatment plant resulting in fluoride being unable to be added to the drinking water due to mechanical failure and the destruction of evidence. The Mayor addressed Mrs Coxon's concern in relation to impartial consulting by stating Council had spoken to a number of people in relation to this and they were all listed in the Council Report for Mrs Coxon to view if she wished. The Director of Water & Waste Services advised Mrs Coxon that all evidence gathered in relation to the recent event at the Water Treatment Plant was under the control of Council and the investigation was still ongoing.

15. CONFIDENTIAL REPORTS

Nil

16. MEETING CLOSURE

The meeting closed at 10.39 am.

17. FOR INFORMATION ONLY

17.1 DEVELOPMENT APPLICATION INFORMATION - 06.05.13 TO 12.05.13

For Council Information Only - No Decision Required.


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Development Applications Received

App no Code / Impact

Address Applicant Description Officer

CA-2007-435

16 Martin Street, NORTH MACKAY

Kristian R Foxon

Request to Extend Currency Period - Combined Application for a Material Change of Use (2 Dwelling Houses on Lots less than 450m2) AND a Reconfiguration of 1 Lot to create 2 Urban Residential Lots (superseded planning scheme)

Josephine McCann

CON-2013-110

25 Schooner Avenue, SHOAL POINT

Jeffrey J Mitchell

Building Work - Boundary Setback for Residential Shed

Andrea McPherson

CON-2013-111

29 McCarthy Street, HAY POINT

Kerryn G Johnston

Building Work - Residential Storage Shed - 50% Site Coverage

Helle Jorgensen Smith

CON-2013-112

29 Leslie Street, SARINA

Heinz W Iwanow

Building Work - Boundary Setback for Carport Helle Jorgensen Smith

CON-2013-113

29 Logan Crescent, ERAKALA

Gavin L Shailer Building Work - Boudnary Setback for Water Tanks

Josephine McCann

CON-2013-114

22 Melba Street, ARMSTRONG BEACH

Chris Vandyke Designs

Building Work - Boundary Setback for Dwelling House

Josephine McCann

CON-2013-115

39 Headland Drive, HALIDAY BAY

Narellan Pools Mackay

Building Work - Boundary Setback for Pool Fence

Darryl Bibay

MCUC-2013-17

Code 33 Warilla View, BLACKS BEACH

McLynskey Planners Pty Ltd

Request for a Permissible Change - Dual Occupancy

Andrea McPherson

MCUI-2013-158

Impact 261 Nebo Road, WEST MACKAY

PK Murphy Pty Ltd and Rok Properties Pty Ltd

Multiple Dwelling Units (8) Kathryn Goodman

MCUI-2013-159

Impact 42 Campwin Beach Road, CAMPWIN BEACH

Saildane Pty Ltd

Accommodation Village (Caravan Park) Julie Brook

ROLC-2011-205

Code 38-40 Downie Avenue, BUCASIA

Mark Seymour Request for plans to be considered 'generally in accordance' - 1 Rural Lot into 28 Lots

Julie Brook

ROLC-2011-309

Code 923 Stockroute Road, GREENMOUNT

Darren J North Request for plans to be considered 'Generally in Accordance' - Boundary Realignment 3 Rural Lots into 3 Rural Lots

Julie Brook

ROLC-2013-146

Code 241 Sugarshed Road, ERAKALA

Damien Raines 1 Rural Lot into 2 Lots Kathryn Goodman

ROLC-2013-160

Code 25 Forgan Street, NORTH MACKAY

Frances M Tugai

1 Urban Residential Lot into 2 Lots Josephine McCann

Development Applications Entering Decision Making Period

App Number


MCUC-2013-110

Code 287 Nebo Road WEST MACKAY

Julie M Laird and Stuart A Laird

Material Change of Use - Warehouse and Car Repair Workshop

Brogan Jones

MCUC-2013-110

Code 287 Nebo Road WEST MACKAY

Julie M Laird and Stuart A Laird

Material Change of Use - Warehouse and Car Repair Workshop

Brogan Jones

MCUC-2013-115

Code 6 David Muir Street SLADE POINT

National Masonry Pty Ltd

General Industry (Concrete Block Construction Facility)

Matthew Ingram

MCUC-2013-132

Code 46 Gateway Drive PAGET

Pengelly Developments Pty Ltd

General Industry (Modular Housing Construction)

Matthew Ingram


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App Number


MCUC-2013-148

Code 158 Horse & Jockey Road RACECOURSE

Joanne I Stewart Dwelling House (Flood and Inundation Overlay) and Residential Storage Shed (Non-compliance with the applicable code)

Andrea McPherson

MCUC-2013-149

Code 64 Makybe Diva Drive OORALEA

Sandsky Developments

Dual Occupancy Matthew Ingram

MCUC-2013-150

Code 25 Florence Street EIMEO

David Reid Homes Mackay

Dwelling House (Steep Land Overlay) Josephine McCann

MCUI-2013-102

Impact 7 Webb Court RURAL VIEW


Multiple Dwelling Units (3) Matthew Ingram

MCUI-2013-80

Impact 65 Rasmussen Avenue HAY POINT


Dual Occupancy Josephine McCann

ROLC-2011-309A

Code 923 Stockroute Road GREENMOUNT

Darren J North Request for plans to be considered 'Generally in Accordance' - Boundary Realignment 3 Rural Lots into 3 Rural Lots

Julie Brook

ROLC-2012-169

Code 93226 Bruce Highway CHELONA

Ross W Lemberg Boundary Realignment 2 Rural Lots into 2 Lots

Brogan Jones

ROLC-2013-156

Code 46 Palm Ridge Drive RICHMOND

Gillian Camilleri 1 Rural Residential Lot into 2 Lots Julie Brook

ROLC-2013-52

Code 174 Habana Wharf Road HABANA

Joseph Abela and Philippa M Abela

Boundary Realignment - 4 Rural Lots into 3 Lots

Brogan Jones

Development Applications Finalised

App No Code /

Impact Location Applicant Description Officer

Approved Subject to Conditions CAC-ASPA-2012/341

Ko Huna Resort 116 Shoal Point Road BUCASIA QLD 4750

Pioneer Projects No. 1 Pty Ltd and McGrath Developments (Kohuna) Pty Ltd

Combined Application - Material Change of Use (49 Multiple Dwelling Units/61 keys) & Reconfiguration of a Lot (3 Special Activities (Tourism) Lots into 49 Lots)

Brogan Jones

CON-ASPA-2013/103

15 Stephanie Court GLENELLA QLD 4740

Development Certification

Boundary Setback for Dwelling House Kathryn Goodman

CON-ASPA-2013/105

6 Hart Street SOUTH MACKAY QLD 4740

Coastal Building Approval Service

Building Work - Boundary Setback for Carport

Josephine McCann

CON-ASPA-2013/106

1 Atherton Street SARINA QLD 4737

Coastal Building Approval Service

Building Work - Boundary Setback for House

Andrea McPherson

CON-ASPA-2013/95

19 Kataryn AvenueGRASSTREE BEACH QLD 4740

Warde Builders Pty Ltd

Building Work - Boundary Setback for Carport

Helle Jorgensen Smith

MCUC-ASPA-2012/428

Code 19-23 Interlink Court PAGET QLD 4740

Jason J Mordey Transport Depot Brogan Jones

MCUC-ASPA-2013/121

Code 80-94 Kellys RoadWALKERSTON QLD 4751


Dual Occupancy Darryl Bibay

MCUC-ASPA-2013/126

Code 14 Queen Street NORTH MACKAY QLD 4740

Weber Builders Dwelling House (Flood & Inundation Overlay)

Andrea McPherson

MCUC-ASPA-2013/144

Code 1 Eales Road RURAL VIEW QLD 4740

Stuart A Niven and Angela B Niven

Dual Occupancy Andrea McPherson

MCUC-ASPA-2013/90

Code 9 Sunrise Place BLACKS BEACH QLD 4740

Don Woods Homes

Dwelling House (Steep land Overlay) Julie Brook


MIN/22.05.2013 FOLIO 27580

App No Code / Impact

Location Applicant Description Officer

MCUI-ASPA-2012/427

Impact 16 Stayts Road MARIAN QLD 4753

Peter Town Homes

Multiple Dwelling Units (4) submitted - Preliminary Approval only granted for (3) units.

Darryl Bibay

ROLC-ASPA-2011/276

Code L 12 Rosewood Drive RURAL VIEW QLD 4740

Xcel Properties Pty Ltd

1 Urban Expansion/Open Space Lot into 2

Julie Brook

ROLC-ASPA-2013/134

Code L 3 Beaconsfield Road East ANDERGROVE QLD 4740

Andergrove Lakes Pty Ltd

Boundary Realignment 2 Lots into 2 Lots Julie Brook

ROLC-ASPA-2013/85

Code 274 Bridge Road WEST MACKAY QLD 4740

Conrad A Hope and Sherilyn Barnes

1 Higher Density Residential Lot into 2 Lots

Kathryn Goodman

Relevant Period Extended

MCUCD-IDAS-2007/524A

Code 21 Malcomson Street NORTH MACKAY QLD 4740

Addenbrooke Pty Ltd

Request to Change an Existing Approval - Permissible Change - Material Change of Use - 53 Multiple Dwelling Units - Extension of Relevant Period by 4 Years

Kathryn Goodman

Confirmed on Wednesday 5 June 2013

………………………………………

MAYOR


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APPENDIX / ATTACHMENTS


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final minutes - mackay council · the purpose of this report is to propose an extension of time for...

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