Paul SlaterChief Executive Officer

Summary

• Profit generated since inception

• TER paid to R & D Fund

• Bonuses & grants to members

• Earnings retained

• # We estimate savings of more than $200 M to Councils since • inception in 1984• # No SA Council lost money as a result of the recent collapse of the CDO investment

product

92 Million

25 Million

52 Million

15 Million

Local Government Corporate Services

(LGCS Pty Ltd)

January 2009

WHO IS LGCS?

• LGCS Pty Ltd – shareholders LGFA & LGA

• Managing Director: Paul Slater

• Board consists of LGFA/LGA/Council Reps (6 members)

• Chair is Tony Pederick (LGFA Board Rep)

LGCS STAFF

• Paul Slater – Managing Director

• John Fisher – Manager - Procurement

• Di Harris – Project Coordinator

• Karren Smith – Admin/Finance Officer

LGCS OBJECTIVES• Identify, develop and deliver value-added services to

Local Government – innovative business solutions for Local Government

• Establish and maintain a formal arrangement (MOU) with the State Government that enables Local Government to access the benefits derived from across government procurement contracts (eg electricity, fuel and car hire).

• Facilitate collaboration on strategic contracts between Councils (eg Records Management – EDRMS)

• Shared Services Projects in conjunction with LGA and Councils.

• Review of all current contracts• Management of any issues arising from

current contracts• Survey of Councils to ensure relevance prior

to undertaking any tendering process• Analyse results of surveys and formulate

future projects• Intensive Council visit program

CURRENT ADMINISTRATIVE UNDERTAKINGS

CURRENT PRODUCTS & SERVICES• After Hours Contact Centre - RAA• Fleet Management/Novated Leases/Salary Packaging –

EPAC/CarFleet• Microsoft Software Agreement – Data#3• Corporate Wardrobe including workwear/footwear –

Yakka/Stylecorp• Telecommunications Contract• Conference Management – Roads & Works – to be held in

Clare on 27/28 August 2009• SA Local Government Directory

CURRENT PRODUCTS & SERVICES• Procurement Support Service – contracting and

tendering service via LGCS staff• Diesel Fuel Rebate Reviews - $400K returned to

Councils so far• Employee Benefits Program – EPAC – (Shell fuel card

and entertainment card)• Across State Government Below 160 Electricity• LGCS Above 160 Electricity• Across State Government Fuel• Across State Government Car Hire• Energy Audits - EnvironArc

CURRENT PRODUCTS & SERVICES• Telecommunication Account Audits• Telstra Telephony Rates for Regional Councils• Procurement Guide to be managed by LGCS• Lost/Found Dog system – Onkaparinga Council • EDRMS – Group of Councils working to take-up option –

LGCS Secretariat role• Eastern Region Procurement Group – Secretariat to

Group• National Procurement Network Member• Debt Collection Services (currently under tender)

NEW PROJECTS FOR CONSIDERATION

• Bulk Paint supplies• Top 10 Chemicals – per LGA WCS• Trucks - PreQualification• Large Plant - PreQualification• Small Plant – Mowers, Chain Saws etc – Panel Contract• Equipment Hire – Panel Contract• Linemarking Services – Panel Contract• Street & Road Signs (re-tender)• Temp Staff & Recruitment Services• Legal Consultants• Carbon Footprint Audits – in conjunction with LGA• Corporate Governance

- Consulting- Performance Reviews- Training

FUTURE DIRECTIONS

• SHARED SERVICES – working with LGA to investigate opportunities for Councils to share resources

• Council Surveys re various projects to ensure relevance to Council requirements

• Continue to manage current and future contracts to ensure KPIs maintained

• Undertake tender process to increase products and services offered to Councils which offer value for money and meet probity requirements

THANK YOU