agenda - central highlands region...2016/10/11 · 006 - agenda - finance and infrastructure...

AGENDA

FINANCE AND INFRASTRUCTURE STANDING COMMITTEE MEETINGTuesday 11 October 2016

Meeting to be held in the Central Highlands Regional Council Chambers, Emerald OfficeCommencing at 9.00am

INDEX OF CONTENTS

PRESENT........................................................................................................................................................2APOLOGIES ...................................................................................................................................................2LEAVE OF ABSENCE....................................................................................................................................2CONFIRMATION OF MINUTES OF PREVIOUS MEETING ..........................................................................2Finance and Infrastructure Standing Committee Meeting - 13 September 2016 ............................................2BUSINESS ARISING OUT OF MINUTES ......................................................................................................2REVIEW OF OUTSTANDING MEETING ACTIONS ......................................................................................2MATERIAL PERSONAL INTEREST, CONFLICT OF INTEREST, PERSONAL GIFTS AND BENEFITS ....2PETITION (TO BE TABLED) ..........................................................................................................................2CORPORATE SERVICES ..............................................................................................................................9Sale of Land - Rate Arrears.............................................................................................................................9Local Preference Policy Review....................................................................................................................11COMMERCIAL SERVICES...........................................................................................................................21State Infrastructure Fund - Maturing the Infrastructure Pipeline Program.....................................................21Arena Digital ..................................................................................................................................................39Emerald Airport Hangar and Office Building..................................................................................................43GENERAL BUSINESS..................................................................................................................................46

006 - Agenda - Finance and Infrastructure Standing Committee - 11 October 2016 -

PRESENT

APOLOGIES

LEAVE OF ABSENCE

CONFIRMATION OF MINUTES OF PREVIOUS MEETINGFinance And Infrastructure Standing Committee Meeting - 13 September 2016

BUSINESS ARISING OUT OF MINUTES

REVIEW OF OUTSTANDING MEETING ACTIONS

MATERIAL PERSONAL INTEREST, CONFLICT OF INTEREST, PERSONAL GIFTS AND BENEFITS

PETITION (TO BE TABLED)

Finance and Infrastructure Standing Committee MeetingFinance and Infrastructure Standing Committee MeetingFinance and Infrastructure Standing Committee MeetingFinance and Infrastructure Standing Committee Meeting

MINUTESMINUTESMINUTESMINUTES

Meeting held in the Blackwater Civic Centre, Blain Street, Blackwater

Tuesday 13 September 2016

Commenced at 9.00am


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CENTRAL HIGHLANDS REGIONAL COUNCIL

FINANCE AND INFRASTRUCTURE STANDING COMMITTEE MEETING

TUESDAY 13 SEPTEMBER 2016

MINUTES CONTENTS

PRESENT .................................................................................................................................................... 3

APOLOGIES ................................................................................................................................................ 3

LEAVE OF ABSENCE ................................................................................................................................. 3

CONFIRMATION OF MINUTES OF PREVIOUS MEETING ......................................................................... 3

Finance & Infrastructure Standing Committee Meeting - 15 August 2016 ..................................................... 3

Conflict of Interest, Personal Gifts and Benefits ...................................................................................... 4

COMMUNITIES’ SECTION .......................................................................................................................... 4

Expression Of Interest - Lease And Operation Of The New Blackwater Aquatic Centre ............................... 4

Proposed Amendment To Fees And Charges Livestock Sales At Council Facilities Other Than Saleyards .. 4

GENERAL BUSINESS ................................................................................................................................. 5

Central Highlands Regional Council Strategic Documents Register.............................................................. 5

CLOSED SESSION ...................................................................................................................................... 5

Central Highlands Regional Council Financial Contribution To Blackwater Rolleston Road .......................... 5

CLOSURE OF MEETING ............................................................................................................................. 6


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MINUTES – FINANCE AND INFRASTRUCTURE STANDING COMMITTEE MEETING – TUESDAY 13 SEPTEMBER 2016 – PAGE 3

MINUTES – FINANCE AND INFRASTRUCTURE STANDING COMMITTEE MEETING HELD AT 9.00AM TUESDAY 13 SEPTEMBER 2016 IN THE BLACKWATER CIVIC CENTRE, BLAIN STREET, BLACKWATER PRESENT Councillors Councillor (Crs) G. Godwin-Smith (Deputy Mayor / Chair), K. Hayes (Mayor), Councillors (Crs) C. Brimblecombe, M. Daniels, G. Nixon and C. Rolfe. Officers Chief Executive Officer S. Mason, General Manager Corporate Services J. Bradshaw, General Manager Infrastructure and Utilities G. Joubert, General Manager Commercial Services M. Webster, Coordinator Communications A. Ferris, Minute Secretary K. Stephenson Observers APOLOGIES Councillor D. Lacey, General Manager Communities B. Duke LEAVE OF ABSENCE Resolution:

Cr M. Daniels moved and seconded by Cr K. Hayes “That a leave of absence be granted for Cr D. Lacey for meeting of the 13 September 2016”. FISC 2016 / 09 / 13 / 01 Carried (5-0) CONFIRMATION OF MINUTES OF PREVIOUS MEETING Finance & Infrastructure Standing Committee Meeting - 15 August 2016

Resolution:

Cr C. Rolfe moved and seconded by Cr K. Hayes “That the minutes of the previous Finance and Infrastructure Standing Committee Meeting held on 15 August 2016 be confirmed subject to the following amendment to resolution FISC 2016 / 08 / 15 / 003 Nogoa Newsagency item, being changed to ‘one’ car park not ‘two’.”

Nogoa Newsagency - Restricted Parking Signs Resolution:

Cr C. Rolfe moved and seconded by Cr K. Hayes “That the Central Highlands Regional Council Finance and Infrastructure Standing Committee approve the installation of ‘Five Minute Parking’ signs immediately outside of the Nogoa Newsagency for one parking space only without any commitment to enforcement.”

FISC 2016 / 09 / 13 / 02 Carried (5-0)


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Business Arising Out Of Minutes Nil Outstanding Meeting Actions Nil Conflict of Interest, Personal Gifts and Benefits Nil

COMMUNITIES’ SECTION Expression Of Interest - Lease And Operation Of The New Blackwater Aquatic Centre Executive summary: This report discusses project procurement options to support the management of the new Blackwater Aquatic Centre. Specifically this report considers the option to call for Expressions of Interest as a pre-cursor to a Request for Tender process. Resolution:

Cr C. Rolfe moved and seconded by Cr C. Brimblecombe “That pursuant to section 228 of the Local Government Regulation 2012 Central Highlands Regional Council invite expressions of interest (EOI) from suitably qualified persons for the management of the new Blackwater Aquatic Centre.” FISC 2016 / 09 / 13 / 03 Carried (5-0) Proposed Amendment To Fees And Charges Livestock Sales At Council Facilities Other Than Saleyards Cr K. Hayes declared a real conflict of interest in this matter (as defined in section 173 of the Local Government Act 2009) due to being the Proprietor of Emerald Land and Cattle Company and proposed to exclude himself from the meeting while this matter is debated and the vote is taken. Attendance:

Cr K. Hayes left the meeting at 9.15am. Executive summary: Central Highlands Regional Council provides a number of facilities that are available for hire for Livestock sales. The hire of these facilities is undertaken on a commercial basis. This report proposes to amend the Fees and Charges for the 2016/2017 Financial Year to standardise fees for this purpose across all facilities, to improve consistency and simplify hire fees at these facilities. Resolution:

Cr Rolfe moved and seconded by Cr C Brimblecombe “That Central Highlands Regional Council resolves to:

1. Amend the Fees and Charges for the 2016/2017 Financial Year to include a commercial fee of $1,000.00 (GST inclusive) for the hire of Council facilities, excluding Saleyards, for Livestock Sales; and

2. Review this charge and methodology for the 2017/18 Financial Year Fees and Charges.” FISC 2016 / 09 / 13 / 04 Carried (4-0)


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Attendance:

Cr K. Hayes returned to the meeting at 9.26am.

GENERAL BUSINESS (Verbal matters raised by Councillors either as a question, acknowledgement and or additional follow-up by officers)

Central Highlands Regional Council Strategic Documents Register It was agreed that the Committee review the following plans/ documents at future Finance and Infrastructure Committee meetings:

1. Waste Management Strategy including Asset Management Plan 2. Geographic Information System Strategy 3. Water Asset Replacement / upgrade Program 4. Sewerage Asset Replacement / upgrade Program

Inland Queensland Road Action Plan (IQRAP) Cr C Rolfe raised for discussion the continued membership and support of the Inland Queensland Road Action Plan. Council agreed to continue the current membership. Attendance:

L. Lankowski, M Webster and A Ferris left the meeting at 9.48am

CLOSED SESSION Into Closed Session Resolution:

Cr M Daniels moved and seconded by Cr C Brimblecombe “That Council close its meeting to the public in accordance with Section 275 (1)(c) of the Local Government Regulation 2012 that Council staff involved in the closed discussions remain in the room.” FISC 2016 / 09 / 13 / 05 Carried (5-0) The meeting was closed at 9.48am. Central Highlands Regional Council Financial Contribution To Blackwater Rolleston Road Executive summary: Central Highlands Regional Council considered options for sealing the remaining 7.8 kilometres of the

Blackwater - Rolleston Road.

Resolution:

Cr C. Rolfe moved and seconded by Cr C. Brimblecombe “That the Central Highlands Regional Council allocate $600,000 in Council funding to commence works on the 7.8 kilometre section of the Blackwater -

Rolleston Road.

FISC 2016 / 09 / 13 / 06 Carried (5-0)


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Out of Closed Session Resolution:

Cr C. Rolfe moved and seconded by Cr C. Daniels “That the meeting now be re-opened to the public.” FISC 2016 / 09 / 13 / 07 Carried (5-0) The meeting was re-opened at 10.01am

CLOSURE OF MEETING There being no further business, the Chair closed the meeting at 10.04am. CONFIRMED CHAIR DATE


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CORPORATE SERVICES

Sale Of Land - Rate Arrears

Finance and Infrastructure Standing Committee Meeting

11 October 2016

SF:JB Information Report

EXECUTIVE SUMMARY:

The purpose of this report is to provide information to Council about the process to be undertaken prior to the final sale of land for overdue rates and to also provide information about the level of outstanding rates which may be eligible for sale in accordance with the Local Government Regulation 2012.

DETAILS

Council’s Rates and Charges Collection Policy sets out the process that Council will undertake when collecting overdue debts. While recovering rates through issuing reminder notices and progressing to court proceedings will remain the initial first stages in the recovery of outstanding debts, properties with rates and charges that are overdue generally for at least three (3) years may be eligible for sale with the proceeds used to pay outstanding rates. Some exceptions exist to this timeframe for commercial vacant land and mining claims.

Council cannot start or continue any court proceedings to recover the overdue rates or charges if it resolves to sell the land. The total Rates and Charges in arrears (excluding 1st levy issue of 2016) as at 30th September is $6 million. An analysis of the age of this debt has identified that amounts overdue by 3 years or more include 133 properties with a total debt of $1.9 million. This represents 32% of the total arrears. The ten properties with the greatest outstanding debts total $447,000.

Analysis of Arrears by Township as at 31st August 2016

The process for the sale of land must be in accordance with the Local Government Regulation 2012. Generally this requires the following steps.

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1. Where rates are overdue for greater than three years, Council may, by resolution, decide to sell the land. While not required, generally it is good practice to issue the ratepayers a warning of the intention for Council to commence action that may result in the sale of land.

2. Once a resolution is passed, Council must issue a “Notice of Intention to Sell” to all interested parties to the property.

3. Following the issue of the ‘Notice of Intention to Sell’, the interested parties are given three (3) months to pay the overdue rates or charges in full.

4. Should the amount remain outstanding at the end of three (3) months, Council must start the procedures for selling the land within six (6) months after the Notice of Intention to sell is served. At any time through the process to sell, the Council must stop the process should the amount of overdue rate or charges and all expenses that the Council has incurred in attempting to sell the land be paid in full.

5. Council must first offer the land for sale by auction. It must prepare an auction notice stating the time and place of the auction and a full description of the land. An auction notice must be given within the legislated timeframe to all parties who were served a ‘Notice of Intention to sell” and who have not since settled their account. Council must advertise the auction notice in a newspaper that has a circulation in the local government area, display the auction notice in its public office and display the notice in a conspicuous place on the land, if it is not in a remote location or difficult to access.

6. The local government must set a reserve price for the auction that is at least -

a. The market value of the land; orb. The higher of the following:

i. The amount of overdue rates and chargesii. The value of the land.

If the reserve price is not reached at the auction, the Council may enter into negotiations with the highest bidder at the auction to sell the land by agreement at a price above the highest bid at the auction. If the highest bidder at the auction does not agree to buy the land, the land is taken to have been sold to the local government for the reserve price.

While 133 properties currently have outstanding rates of greater than 3 years and may be eligible to progress through to the sale of land, officers will recommend approximately six to ten of these properties that are spread across the region, for a resolution to progress to sale of land at Council’s meeting on the 25th October 2016. Officers will then progressively recommend further properties for a resolution over future months.

ATTACHMENTS:

Nil

Shelly FoggManager Finance

Jason BradshawGeneral Manager Corporate Services

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Local Preference Policy Review


11 October 2016

SF:JB

EXECUTIVE SUMMARY:

The Local Preference Policy provides consistent direction and guidance to support economic activity within the Central Highlands Region. The aim of this policy is to find the right balance between supporting local businesses and providing value for money for all ratepayers within Central Highlands Region.

The policy provides for preference to be given to suppliers within the Central Highlands Region, as well as a further preference on a locality basis for suppliers within the vicinity in which the work is being performed. With increasing interactions with local business and the challenges in the national and local economies the policy provides a basis upon which to address current business practices and to create an environment where the support for local communities is reinforced.

RECOMMENDATION:

That Central Highlands Regional Council adopt the Local Preference Procurement Policy as presented.

INTRODUCTION

The current Local Preference Policy is scheduled for renewal by 01 November 2016. Over recent months Council has discussed options for modifying Council’s Local Preference Policy to enhance support for economic activity with the Central Highlands Region. The Local Preference Policy tabled provides enhanced options for targeting suppliers within a locality within the region and providing a greater support for local businesses with respect to medium sized contract works.

BACKGROUND:

Council’s current Local Preference Policy was adopted in October 2014. The proposed policy as tabled updates the current local preference policy by applying further options and adjusted weightings to the current policy criteria.

Over the last few months development work has been undertaken to enhance the usability of the Central Supplier Register Software. These enhancements include:

The ability to have a weighting included with the evaluation of quotations to provide preference to suppliers within that localised area of the Central Highlands Region

The development and enhancement of standard templates to improve the ease and effectiveness of creating quotations from a council administrative perspective and the ease of responding from a suppliers perspective

Reporting to improve the ability to analyse and report on local content and local spend outcomes

These changes to the 360 Central Supplier Register are available to be rolled out once the local preference policy has been adopted, and further engagement with a sample of suppliers has been undertaken. The updates have streamlined the work required by the evaluators and will improve audit controls by creating a more consistent evaluation process that determines the successful contractor.

Regular monthly dashboard reporting that shows local spend as a percentage of total spend within the entire region and within each locality of the region has been developed. This will also allow Council to measure the effectiveness of changes made to the local preference policy.

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While this policy determines the criteria for the evaluation of quotes and tenders with respect to a local policy preference, Council will continue to work to increase interaction with local suppliers and improve the flow of information and knowledge throughout the region. Training Council staff to assist suppliers to quickly and easily sign-up to the Central Supplier Register and to accurately target the relevant panels for those suppliers will ensure suppliers are informed in relation to the contracts that they are interested in.

A guide to “Doing Business with Council” has been developed which is to be available on Council’s website as well as linked to other websites such as CHDC and the Department of State Development. The availability and feedback from these forms of documentation will form the basis of a resource pack being developed and to further strengthen the engagement of suppliers with supplier information evenings to be scheduled when the suite of changes are finalised.

COMMENT:

Three key modifications have been made to the updated Local Preference Policy. These changes are intended to increase the amount of contracts sourced locally and to distribute work broadly across the Central Highlands Region. These modifications include:

1. The definition and weighting for local suppliers2. Level of Weighting by value of contract3. Inclusion of a requirement for a local content component in all contracts greater than $200,000

1. Definition and Weighting for Local Suppliers. The current local preference policy provides a 100% weighting for all local business with the Central Highlands Regional area with lower weightings for those entirely or partially outside the region. Table 1 below shows the weighting included in the current local preference policy.

Table 1

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To facilitate Council’s desire to distribute work across the region, the updated local preference policy provides a higher weighting to those suppliers registered in the vicinity in which the work is being performed. An example of this is detailed in table 2 below.

Table 2

Registered and operates in the locality of the work being contracted 100%of local contentRegistered and operates locally within the Central Highlands Region 50% of local content Registered external to the region - employs more than 50% of personnel locally 40% of local contentRegistered externally - employs 20-50% of personnel locally 30% of local contentRegistered externally - employs less than 20% of personnel locally 20% of local contentRegistered externally - employs from Central West Queensland region 10% of local content0 Other 00% of local content

Example of Local Content Scoring

This means that while local contractors/suppliers will be provided an advantage when work is situated within their locality, they will also be disadvantaged when work is situated away from their locality.

2. Level of weighting by Value of Contract. The current local preference policy includes a 20% weighting for contracts under $15,000, a 5% weighting for contracts between $15,000 and $200,000 and an optional weighting of up to 5% for contracts greater than $200,000. It is important to note that this weighting is not a weighting on the price of the goods but a percentage of the total weighting score of 100% for the evaluation.

The scaling within the proposed local preference policy is noted in Table 3 below.

Table 3Contract Value Proposed Local Preference

Weighting

<$15,000 20%$15,000 to $100,000 10%$100,000 to $200,000 5%Above $200,000 Up to 5%

For information details of percentage and dollar spend by contract value is provided in Table 4 below. These values have been considered in determining the weighting applied in the local preference policy.

Table 4

2015-2016

Cumulative no of Purchase orders raised

Cumulative $ value of Purchase Orders Raised

Total PO's <$500 50.5% 2.5%Total PO's $500-$1,000k 67.0% 5.3%Total PO's $1,000-$5,000k 88.1% 16.6%Total PO's $5,000-$7,500k 91.8% 21.8%Total PO's $7,500-$10,000k 93.5% 25.2%Total PO's $10,000-$15,000k 95.5% 30.8%Total PO's $15,000-$30,000k 97.7% 41.8%Total PO's $30,000-$50,000k 98.7% 50.3%Total PO's $50,000-$75,000k 99.1% 56.3%Total PO's $75,000-$100,000k 99.4% 61.7%Total PO's $100,000-$150,000k 99.7% 70.4%Total PO's $150,000-$200,000k 99.8% 74.7%Total PO's >$200,000k 100.0% 100.0%

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3. Inclusion of requirement for a local content component in all contracts greater than $200,000. Within their tender responses contractors/suppliers must give a commitment to spend 20% of their tender price in the local region and demonstrate how this will be achieved.

CONSIDERATIONS: (Compliance/Risk Management)

Statutory:Council's procurement practices must comply with the sound contracting principles set out in Section 104 of the Local Government Act 2009. These sound contracting principles are:

(a) Value for money(b) Open and effective competition(c) The development of competitive local business and industry(d) Environmental protection(e) Ethical behaviour and fair dealing

The local preference policy sets out Council’s approach to the development of a competitive local business and industry, while giving proper regard to all the principles and in particular, value for money and open and effective competition.

Policy:The Local Preference Policy will support the content of Council’s adopted Procurement Policy.

Financial: (Including whole of life costs where applicable)By applying a weighting to local content, and to localities within the region, the ultimate price paid will often be impacted, resulting in a reduced amount of deliverables or alternatively the need to increase the budget allocation to deliver the same program. The aim of this policy is towards finding the right balance between providing work for local businesses and the value for money of individual contracts.

Social:Overall the implementation of the local preference policy is expected to have positive impacts on the economic activity within the region both through maintaining spend within the region and encouraging a broader range of spend to localities across the region.

Corporate Plan:Key Priority 3 – supporting our local economyKey Priority 6 – Strong Governance

RISK MANAGEMENT ASSESSMENT:This risk management analysis pertains to the context of Council supporting the recommendation and implementing same.

Operational:A key operational consideration is the potential to increase the cost of procurement and the complexity of the administration of the content of the local preference policy. While the potential to increase the cost of procurement across Council remains, the operational complexity is being managed by weightings assigned to each supplier through Council’s Central Supplier Register.

Strategic:Council has the opportunity through the implementation of a sound Local Preference Policy to improve relationships with local industry and to assist with the development of industry within the region.

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Reputation:Council’s reputation will be enhanced by ensuring the right balance between supporting our local economy and targeting the development of local industry, while still obtaining value for money for the region's ratepayers.

Project:The implementation of the Local Preference Policy will begin a schedule of training first internally with Council staff and secondly across the region with local suppliers.

Political:There is risk that the policy may not be well received by both suppliers outside of the Central Highlands Region as well as suppliers within the region that may perceive they will be disadvantaged by the implementation of a locality weighting within the region. What this may mean for example, is where work is based in Capella, the Capella business is provided an advantage for this job, that same business however may be seen at a disadvantage for work based in Emerald.

Environmental:It is critical that Council has an understanding of the impact of the local economy on the environment and is able to be responsive and flexible to changes in that environment within policy making decisions.

CONSULTATION / ENGAGEMENT:

Consultation has been undertaken with officers across Council to ensure the Local Preference Policy as tabled is expected to provide the intended outcome of encouraging local business as well providing value for money for ratepayers.

Consultation with the community is planned to obtain feedback on the effectiveness of the local policy preference and to ensure the community has an understanding of the requirements for doing business with Council. Once sought, the local preference policy will be updated as required and presented to Council for further consideration.

WHOLE OF LIFE:

Local preference policy is expected to increase whole of life cost impacts on council’s budget however numerous benefits are expected to result from encouraging spend and enhancing the performance of local businesses.

OPTIONS:

1. Leave the policy as it is in the current format with no change to the definition of local suppliers based on the proximity of the supplier to the project

2. Remove the local preference policy and base procurement decisions on alternative weighting that provide benefits to the Central Highland Region.

3. Increase or decrease the level of weightings within the local preference policy.

CONCLUSION:

The updated local preference policy seeks to find a balance between supporting the local economy, providing value for money and ensuring open and effective competition both within and outside of the region. It is recommended that the updated Local Preference Policy be adopted.

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ATTACHMENTS:

Local Preference Policy

Shelly FoggManager Finance

Jason BradshawGeneral Manager Corporate Services

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Adoption Date: 13th August, 2014 Revokes: N/A

Amended Date: 21 July 2014 Review Date: 1st August, 2015

Local Preference Policy Page 1 of 4

COUNCIL POLICY

Local Preference

POLICY NUMBER: DEPARTMENT: Corporate Services

EFFECTIVE DATE: October 2016 UNIT: Finance

1.0 Purpose and Scope

The policy's purpose and scope is to provide consistent direction and guidance to all officers when undertaking procurement activities in line with the sound contracting principles included in the Local Government Act 2009:

• value for money; • open and effective competition; • the development of competitive local business and industry; • environmental protection; and • ethical behaviour and fair dealing.

2.0 Reference

Local Government Act 2009 Local Government Regulation 2012 Trade Practices Act 1974 Competition and Consumer Act 2010 Employee Code of Conduct CHRC Procurement Guideline CHRC Procurement Manual

3.0 Definitions

CEO shall mean Chief Executive Officer - a person who holds an appointment under section 194 of the Local Government Act 2009. This includes a person acting in this position CHRC shall mean Central Highlands Regional Council Council shall mean Central Highlands Regional Council Employee shall mean a Local Government Employee, including:

a. the Chief Executive Officer; or b. a person holding an appointment under section 196 of the Local Government Act 2009

Local shall mean an entity or individual physically located within the Central Highlands Regional Council boundaries. Registered Business shall mean a company or entity as defined by the Australian Securities and Investment Commission (ASIC) and that also appears as “Active” in the ASIC Business Name Register and as amended from time to time.

Central/West Queensland shall mean the broader region outside of the Central Highlands Regional Council boundaries. Councils which fall under this region are Banana Shire Council, Barcaldine Regional Council, Blackall-Tambo Regional Council, Gladstone Regional Council, Isaac Regional


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Adoption Date: 8th October, 2014 Revokes: N/A

Amended Date: N/A Review Date: 1st November, 2016


Council, Livingstone Regional Council, Mackay Regional Council, Maranoa Regional Council, Murweh Regional Council, and Rockhampton Regional Council. The Act shall mean the Local Government Act 2009 (as amended)

The Regulation shall mean the Local Government Regulation 2012 (as amended)

Whole of Life Cost (WoL) shall mean the total of all costs over the life of the good/service/work (i.e. acquisition, maintenance and disposal costs)

4.0 Policy Statement

Council is committed to the principle of the development of competitive local business and industry when entering into:

• contracts for the supply of goods or services; • contracts for the carrying out of works; and • the disposal of assets.

For this purpose, if an expression of interest, tender or quotation is evaluated and all things being equal it is Council’s preference to purchase locally. That is, a local preference evaluation/selection criteria with a weighting of not more than 20% (of the evaluation/selection criteria total) will be utilised in the evaluation process, and where other selection criteria are evaluated equally then; Council may accept a tender submission or offer from a local supplier in preference to a comparable tender submission or offer from a non-local supplier even if the tender submission or offer from the non-local supplier has been assessed as more favourable in terms of one or more of the assessment criteria applied (including, but not limited to, price), so long as the overall differences are not substantial, and so long as it is clear that the selected local supplier can meet Council’s requirements at an acceptably high standard which is generally comparable to that of other offers.

4.1 Local Preference/Content Evaluation and Weighting Criteria

Local preference is not simply a price benefit to a local supplier, (e.g. where their price is 20% higher than a competitor’s price), but rather a quantitative measurement that can be utilised in recognition of the physical presence of the supplier in the Central Highlands Council area, as well as the demonstrated and/or actual accompanying social and economic benefits that this provides to Council, such as:

• creation of new and/or maintenance of existing local employment opportunities; • more responsive and readily available servicing support; • closer and more convenient communication regarding progress, performance and

measurement to enable effective and efficient contract administration and management; • encouragement for the relocation of established businesses from outside the region to

physically enter, establish and maintain a physical presence ongoing in the region; • to assist businesses to become sustainable and ongoing; • to assist local businesses to remain competitive; • support for economic growth within the local area; and • returning value-added benefits to Council and its ratepayers from the associated local

commercial transactions.

Therefore, in this policy statement, a “local supplier” is a supplier that:

• is beneficially owned and operated by persons who are residents of the local government area of Council and pay rates; or

• is a registered business or individual that has its principal place of business within the Local Government area of Council; or otherwise

• has a place of business within the Local Government area of Council which solely or primarily employs persons who are residents or ratepayers of the Local Government area of Council.


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Council’s preference is to purchase locally and as such will apply up to a 20% weighting to all offers received in response to its expressions of interest, quotations and Tenders where the offer is able to demonstrate some form of “local” economic benefit. Where the total contract value is between $1 and less than $15,000 in a financial year, all offers shall have a 20% weighting applied to the relevant qualitative criteria when undertaking a comparative analysis of the offers. Where the total contract value is between $15,001 and less than $100,000 in a financial year, all offers shall have a 10% weighting applied to the relevant qualitative criteria when undertaking a comparative analysis of the offers. Where the total contract value is between $100,001 and less than $200,000 in a financial year, all offers shall have a 5% weighting applied to the relevant qualitative criteria when undertaking a comparative analysis of the offers. Where the total contract value will be in excess of $200,000 in a financial year, all offers will be treated in accordance with the identified evaluation criteria and weighting detailed in Council’s published invitation document taking into consideration the procurement context, although the weighting should not exceed a maximum of 5%. Tenders greater than $200,000 will where practical, have a demonstrated local content of 20% by the tenderer in their submission. To facilitate Council’s desire to distribute work across the region, Council will assign a higher weighting

to those contractors/suppliers registered in the vicinity in which the work is being performed.

When evaluating offers the following ratings are to be applied:

Definition Scoring Supporting Business

Business is registered and operated in the locality the work is being performed, pays rates or leases a business premises and employs locals within that locality of Central Highlands Region.

100% Economic and social benefits remain within the specific locality of the Central Highlands Region.

Business is registered and operated in the Central Highlands Regional Council area, however outside of the locality the work is being performed, pays rates or leases a business premises and employs locals within Central Highlands Regional Council boundaries.

50% Economic and social benefits remain within the Central Highlands Regional Council area.

Business is registered outside Central Highlands Regional Council boundaries and employs greater than 50% of its workforce in Central Highlands Regional Council boundaries.

40% Significant contribution and commitment being demonstrated and being realised in the Central Highlands Regional Council area.

Business is registered outside Central Highlands Regional Council boundaries and employs between 50% and 20% of its workforce in Central Highlands Regional Council boundaries.

30% Economic and social benefits realised through the employment of locally based staff.

Business is registered outside Central Highlands Regional Council boundaries and employs a locally based workforce from within the Central Highlands Regional Council boundaries of less than 20%.

20% Economic and social benefits realised through the employment of locally based staff.

Business is registered outside Central Highlands Regional Council boundaries and is within the Central/West Queensland Region. The business employs a locally based workforce from within the greater Central Highlands Regional Council and/or Central/West Queensland region.

10% Significant contribution and commitment being demonstrated across the broader Central/West Queensland area.

Other 0% External to Central Queensland Region


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5.0 Policy Review

All policies will be reviewed at least bi-annually or when any of the following evaluations occur:

• Changes in relevant legislation, regulations, standards and/or Council policies or directives; and

• Other circumstances as determined from time-to-time by the Chief Executive Officer or through a resolution of Council.

This policy is nominated to be reviewed on or before 1 November, 2017.


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COMMERCIAL SERVICES

State Infrastructure Fund - Maturing The Infrastructure Pipeline Program


11 October 2016

KS:MW

EXECUTIVE SUMMARY:

The release of the Maturing the Infrastructure Pipeline Program was announced by the Honourable Jackie Trad MP, Deputy Premier and Minister for Infrastructure, Local Government and Planning on 9 September 2016 with total funding of $20 million which forms part of the $2 billion State Infrastructure Fund. The program is to fast track early stages of the infrastructure project pipeline by developing strategic assessments and preliminary evaluations for projects to assess the potential viability and feasibility of each proposal. New proposals from local government have been requested, with a closing date of 21 October 2016. A number of projects have been identified for Council's consideration to be submitted under this funding opportunity.

RECOMMENDATION:

That Central Highlands Regional Council endorse the following projects for submission under the Maturing the Infrastructure Pipeline Program:

Emerald Saleyards Improvements (including Draft Area, Double Decker Ramp, Tick Clearing Holding Area and Dump Ramp) – identified to improve workplace health and safety outcomes and increased cattle processing with commencement of tick clearing operations;

Emerald Entertainment, Events and Evacuation Centre – development and construction of a multi-purpose facility ;

Yamala Feeder Road - intermodal hub needs a major improvement in the feeder network south of Yamala to ensure transport costs are reduced to the minimum; and

Bedford Weir Crossing - investigate options to reduce the average annual time of closure of the Blackwater – Cooroorah Road’s crossing of the Mackenzie River.

INTRODUCTION

Council received a letter announcing the Maturing the Infrastructure Pipeline Program, dated 19 September 2016, from the Director-General, Department of Infrastructure, Local Government and Planning (attached). The program will involve moderated assessment and prioritisation processes through two branches of work:

Rapid assessment: working with industry to rapidly assess the viability and feasibility of proposals and future opportunities identified in the State Infrastructure Plan.

Early stage assessment: working with local government to assess the potential of infrastructure proposals to support those that increase economic productivity and enhance liveability in Queensland's regions.

Council is invited to submit new infrastructure proposals for early stage assessment under the program.

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The early stage assessment aims to:

Fund early stage assessments (strategic assessment of service requirements and preliminary evaluation) of local government infrastructure priorities;

Develop documentation to support investment decisions; Provide a consistent approach to proposal development; and Limit the administrative burden of local government participation in the program.

This funding program provides an opportunity for Council to progress endorsed projects, which are at infancy stage. Should the nominated projects be successful the Maturing the Infrastructure Pipeline Program will assist to bring the identified projects to 'investment ready' status in preparation for other funding opportunities. Selected proposal will be funded through pre-business case work in line with the project assessment framework and the Queensland Treasury Corporation project decision framework.

BACKGROUND:

The State Infrastructure Plan (SIP) was released in March 2016. It outlines the Queensland Government’s commitment to addressing infrastructure needs across the state in a timely, sensible and cost effective way while working within a fiscally constrained environment. The State Infrastructure Fund (SIF) supports implementation of the SIP – facilitating the delivery of the infrastructure that Queensland needs to drive economic growth and jobs across the state. The $20 million Maturing the Infrastructure Pipeline Program, established under the SIF, aims to provide early assessment of proposals that will progress through to the next stages of the infrastructure pipeline. The program was developed to help identify a pipeline of robust projects and enable them to be matured from conceptually good ideas into proposals supported by solid evidence and sound strategic thinking, and to consider projects at an early stage that would be suited to further investment.

COMMENT:

Projects put forward for early stage assessment should: Be within early stages of project planning i.e. strategic assessment of service requirements and

preliminary evaluation; Align with local government, regional or state priorities; Leverage or unlock economic productivity or enhance liveability; and Not be currently funded or progressed through another Queensland Government initiative.

Preference will be given to proposals that: Align with the SIP; Address identified productivity and liveability needs; and Attract new or alternate funding sources.

Ineligible proposals for funding include proposals that: Already have an identified funding source; Are at the business case stage of planning or beyond; and Are based outside Queensland.

The identified projects for Council's endorsement are all at early project phase, ideas and concepts that require further time and financial commitment to progress the respective projects through to feasibility readiness. The Maturing the Infrastructure Pipeline Program provides an ideal funding source to assist Council with progressing these projects.

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The projects identified for Council's consideration are as follows:

Emerald Saleyards Improvements – a culmination of projects to improve workplace health and safety outcomes, as well as, anticipated growth in cattle process numbers through tick clearing facilities now provided at the saleyards. The improvement projects being draft area, double decker ramp, holding yard for cattle awaiting tick clearing and dump ramp.

Emerald Entertainment, Events and Evacuation Centre – facility concept design and planning following donation of land to Council.

Yamala Feed Road - the intermodal hub needs a major improvement in the feeder network south of Yamala to ensure transport costs are reduced to the minimum. The Yamala Intermodal Hub will, at maximum effectiveness, have significant benefits in cost and safety for other users of the Capricorn Highway. The study will identify those works that give the best benefit/cost.

Bedford Weir Crossing - investigate options to reduce the average annual time of closure of the Blackwater – Cooroorah Road’s crossing of the Mackenzie River. The current crossing has seen vehicles swept downstream and regional freight (the crossing is at the boundary of Central Highlands and Isaac Regional Councils) disrupted. The study will identify those works that give the best benefit/cost.


Statutory:All projects are at concept selection or pre-feasibility stage; therefore may require statutory approvals as they move through the project planning phase.

Policy: Not applicable. Financial: (Including whole of life costs where applicable)

Not yet available – projects are at concept selection or pre-feasibility stage; and do not have an identified funding source at this stage.

Social: Not applicable.

Corporate Plan:Building and Maintaining Quality InfrastructureEconomic Development


Operational:There will be an impact if the project/s are successful; however the guidelines state that were a proposal is successful, the Department of Infrastructure, Local Government and Planning will engage professional service providers to prepare early stage assessment documentation, in line with the project assessment framework and in collaboration with proposal applicants. Upon finalisation of the assessment, all documentation will be provided to the local government.

Strategic:The projects are subject to normal statutory approvals.

Reputation:There is positive impact for Council’s reputation if support for these projects can be secured.

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Project:The projects are at concept selection or pre-feasibility stage.

Political:Council will benefit from securing Government support for these projects.

Environmental:The identification of any environmental impacts of the various projects would be identified through the feasibility and business cases phases.


Council staff will work with Central Highlands Development Corporation and relevant Departmental staff to complete the required submission paperwork.

WHOLE OF LIFE: Not applicable at this stage of project feasibility.

OPTIONS:

Not applicable.

CONCLUSION:

The following projects are proposed for submission under the Maturing the Infrastructure Pipeline Program. This program provides Council with an excellent opportunity to develop the approved projects to an investment ready status:

Emerald Saleyards Improvements (including Draft Area, Double Decker Ramp, Tick Clearing Holding Area and Dump Ramp);

Emerald Entertainment, Events and Evacuation Centre; Yamala Feeder Road; and Bedford Weir Crossing

ATTACHMENTS:

1. Letter dated 19 September 2016 – Director-General, Department of Infrastructure, Local Government and Planning.

2. Submission Guideline for Local Government

Kymberlee SeniorCentral Highlands Development Corporation

Michelle WebsterGeneral Manager Commercial Services

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Our ref: DGBN16/1300

19 September 2016 Mr Scott Mason Chief Executive Officer Central Highlands Regional Council PO Box 21 EMERALD QLD 4720 Dear Mr Mason The State Infrastructure Fund $20 million Maturing the Infrastructure Pipeline Program is designed to fast track the early stages of the infrastructure pipeline program. To achieve this, the program will work through two concurrent activities (early stage and rapid assessments) to assess the potential viability and feasibility of each proposal. The first activity, a rapid assessment, focuses on working closely with key stakeholders and industry to undertake rapid assessments that will determine project maturity and strategic alignment. Initially the program will target proposals raised through consultation and future opportunities identified in the State Infrastructure Plan Part B that are currently without a funding stream and at varying levels of maturity. For suitable projects an investment prospectus will be developed. The prospectus will provide a useful snapshot of the project and inform discussions with investors in infrastructure. The second activity, an early stage assessment, focuses on working with local government to provide an initial assessment of new infrastructure proposals for the purpose of selecting proposals that are suitable for progression. The selected proposals will be funded through pre-business case work in line with the project assessment framework and the Queensland Treasury Corporation project decision framework for local government leaders. Funding has been allocated to progress proposals raised by local government with the objective of increasing economic productivity and enhancing liveability in Queensland’s regions. The Department of Infrastructure, Local Government and Planning (the department) will collaborate with local government to progress assessments of infrastructure proposals that meet identified criteria. As a local government organisation eligible to participate in the early stage assessment we invite submissions of new infrastructure proposals. Guidelines (including a submission template) for providing an infrastructure proposal submission for evaluation under an early stage assessment are attached. Please read these guidelines carefully before submitting an application.


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Applications can be submitted via email by Friday, 21 October 2016 at [email protected] or by post to Mr Darren Nightingale, Director, Infrastructure Policy and Planning, Department of Infrastructure, Local Government and Planning, PO Box 15009, City East Qld 4002. If you require further information, I encourage you to contact Mr Nightingale on 3452 7682 or by email at [email protected]. Yours sincerely Frankie Carroll Director-General Enc


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Maturing the Infrastructure Pipeline Program

Submission guidelines for local government

September 2016


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Submission guidelines for local government - ii -

© State of Queensland, September 2016. Published by the Department of Infrastructure, Local Government and Planning, 100 George Street, Brisbane Qld 4000, Australia.

Licence: This work is licensed under the Creative Commons CC BY 4.0 Australia Licence. In essence, you are free to copy and distribute this material in any format, as long as you attribute the work to the State Of Queensland (Department of Infrastructure, Local Government and Planning) and indicate if any changes have been made. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.

Attribution: The State of Queensland, Department of Infrastructure, Local Government and Planning. The Queensland Government supports and encourages the dissemination and exchange of information. However, copyright protects this publication. The State of Queensland has no objection to this material being reproduced, made available online or electronically but only if it is recognised as the owner of the copyright and this material remains unaltered.

The Queensland Government is committed to providing accessible services to Queenslanders of all cultural and linguistic backgrounds. If you have difficulty understanding this publication and need a translator, please call the Translating and Interpreting Service (TIS National) on 131 450 and ask them to telephone the Queensland Department of Infrastructure, Local Government, and Planning on 13 QGOV (13 74 68).

Disclaimer: While every care has been taken in preparing this publication, the State of Queensland accepts no responsibility for decisions or actions taken as a result of any data, information, statement or advice, expressed or implied, contained within. To the best of our knowledge, the content was correct at the time of publishing.


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Submission guidelines for local government - iii -

Contents

Introduction ................................................................................................................. 2

Purpose ........................................................................................................................ 2

Background .................................................................................................................. 2

Early stage assessment ............................................................................................. 3

Benefits ........................................................................................................................ 3

Proposal identification and selection ............................................................................. 3

Eligibility criteria ..................................................................................................... 3

Ineligible proposals ................................................................................................ 4

Approach ..................................................................................................................... 4

Submission ............................................................................................................ 4

Appendix 1 – Submission template ........................................................................... 5


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Submission guidelines for local government - 2 -

Introduction

Purpose

The purpose of the Maturing the Infrastructure Pipeline Program – Submission

guidelines for local government is to:

describe the aims and benefits of the program

communicate key activities during the process

outline the requirements for a local government early stage assessment submission

provide a submission template.

Background

The State Infrastructure Plan (SIP) was released in March 2016. It outlines the Queensland Government’s commitment to addressing infrastructure needs across the state in a timely, sensible and cost effective way while working within a fiscally constrained environment. The State Infrastructure Fund (SIF) supports implementation of the SIP – facilitating the delivery of the infrastructure that Queensland needs to drive economic growth and jobs across the state. The $20 million Maturing the Infrastructure Pipeline Program, established under the SIF, aims to provide early assessment of proposals that will progress through to the next stages of the infrastructure pipeline. The program was developed to help identify a pipeline of robust projects and enable them to be matured from conceptually good ideas into proposals supported by solid evidence and sound strategic thinking, and to consider projects at an early stage that would be suited to further investment. There are two concurrent activities within the program:

1. Rapid assessment – focus on working with industry to rapidly assess up to 236 projects (proposals raised through consultation and future opportunities) identified in the SIP.

2. Early stage assessment – focus on working with local government to identify infrastructure needs and progress assessments of proposals, in-line with the project assessment framework, to enable future investment (the focus of this guideline).


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The Queensland Government project assessment framework provides tools and techniques to assess projects throughout the project lifecycle – from initial concept to benefits realisation. The first two stages identified in the framework are the:

1. strategic assessment of service requirements (identify the need)

2. preliminary evaluation (develop and assess options).

Further information regarding the framework can be found on Queensland Treasury’s website. Previous identification of opportunities or proposals does not exclude local government from submitting new proposals as part of the early stage assessment activity covered under this guideline.

Early stage assessment

Benefits

The early stage assessment aims to:

fund early stage assessments (strategic assessment of service requirements and

preliminary evaluation) of local government infrastructure priorities

develop documentation to support investment decisions

provide a consistent approach to proposal development

limit the administrative burden of local government participation in the program.

Proposal identification and selection

The Queensland Government is committed to supporting infrastructure proposals that will have long-term benefits for the community. The proposals identified through this process will be funded through early stage assessments for progression along the infrastructure pipeline. Proposals that will require an investment of greater than $50 million will use the Building Queensland frameworks, as applicable. For this reason there are a number of criteria that each proposal must meet and there are some proposals that will be ineligible for funding.

Eligibility criteria

Assessment of proposals will take into account the following criteria. The proposal should:

be within early stages of project planning i.e. strategic assessment of service

requirements and preliminary evaluation

align with local government, regional or state priorities

leverage or unlock economic productivity or enhance liveability

not be currently funded or progressed through another Queensland Government

initiative.


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Preference will be given to proposals that:

align with the SIP

address identified productivity and liveability needs

attract new or alternate funding sources.

Ineligible proposals

Ineligible proposals for funding include proposals that:

already have an identified funding source

are at the business case stage of planning or beyond

are based outside Queensland.

Approach

The early stage assessment process invites local governments to submit proposals for consideration. Submissions can be provided in one of two ways:

by completing the submission template provided in Appendix 1; or

by completing the concept selection and pre-feasibility stages of the project decision framework developed by Queensland Treasury Corporation.

The Queensland Treasury Corporation developed the project decision framework for local government leaders. The framework aligns with the requirements of the project assessment framework and aims to provide an overarching system through which decision making for new projects can be disciplined, robust and in the best interests of the community. The framework provides a staged approach that enables local government to assess the appropriateness of a project proposal before moving forward, specifically the first two stages:

1. concept selection (community need and rationale)

2. pre-feasibility (is this the best option).

Further information regarding the framework can be found on Queensland Treasury Corporation website. Proposals will be assessed and moderated prior to a recommendation being made to the Deputy Premier. Where a proposal is successful, the Department of Infrastructure, Local Government and Planning will engage professional service providers to prepare early stage assessment documentation, in-line with the project assessment framework and in collaboration with proposal applicants. Upon finalisation of the assessment, all documentation will be provided to the local government.

Submission

Local government will be invited to submit proposals using the submission template provided in Appendix 1, or via documentation from the project decision framework. If clarification of any point in the submission is required, the project team will communicate with the key contact as identified in the submission.


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Appendix 1 – Submission template


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Maturing the Infrastructure Pipeline Program - Submission guidelines for local government Expression of Interest

[Insert new proposal name]

Submitted by [insert local government]

[Insert date]


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Cover letter [Insert date]

Director, Infrastructure Innovation and Practice

Department of Infrastructure, Local Government and Planning

PO Box 15009

City East Queensland 4002

Dear Sir/Madam

Proposal submission – [insert proposal name]

Yours sincerely

[Name]

[Details]


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Local government details

Local government details

Local government name:

Key contact

Name

Role

Phone

Email

What is your infrastructure proposal?

Proposal details

Name

Location

Geocode (latitude and longitude)

Asset class

(Tick as appropriate)

☐ Arts, Culture and Recreation

☐ Cross-government

☐ Digital

☐ Education and Training

☐ Energy

☐ Health

☐ Justice and Public Safety

☐ Social Housing

☐ Transport

☐ Water

☐ Other (please provide)

__________________________________________________

How does the proposal align with

local government, regional or state

government priorities?

Has an investment strategy been

developed that would enable the

proposal to proceed?

(If yes, please provide details)


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Background

Background

How was this proposal identified as

a priority/project for local

government?

Has any form of initial

planning/investigation been

undertaken in relation to this

proposal?

(If yes, please provide a summary

of work completed)

Has investment/support been

sought previously for this proposal?

(If yes, please provide details of

submission or discussion)

Issue/challenge

Issue/ challenge

What is the infrastructure

issue/challenge the proposal will

address?

(If more than one issue/challenge

please identify each clearly)

Outline the impacts that will occur if

the infrastructure issue/ challenge

are not addressed?

(Quantify where possible and

provide for each identified problem)


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Potential solutions

Potential solutions

Is there an identified solution?

(If yes, please provide details)

Have alternate solutions been

considered? If so, why are they

not suitable?

Is the proposal being addressed

by another Queensland

Government initiative?

Benefits

Benefits

What benefits will the proposal

bring to the community (including

to liveability and economic

productivity)?

Will the proposal attract further

investment in the region?

(If yes, please describe)


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Arena Digital


11 October 2016

AE:MW

EXECUTIVE SUMMARY:

Arena Digital Production Pty Ltd have approached Emerald Saleyards to promote the installation of SaleYard Television, digital information screens for Saleyards. SaleYard Television provides a free digital information screen to be located at the saleyards, which provides personalised content and real-time messaging. The installation and maintenance of the information system is at no cost to Council and the digital medium is funded through local business sponsorship and advertising.

RECOMMENDATION:

That Central Highlands Regional Council support the installation of SaleYard Television at the Emerald Saleyards at no cost to Council.

INTRODUCTION

Arena Digital Production Pty Ltd have contacted the Emerald Saleyards in regard to using their television technology to aid in the marketing of local businesses and to livestream saleyards information to patrons during livestock sales. It is indicated that the cost of this technology is without fee to Council, with revenue derived from local business sponsorship and advertising which supports the cost of installation and maintenance of the system. The technology can provide custom designed information, instant messages, local weather reports and live news updates. The provision of Arena Digital technology provides another mechanism for saleyard patrons to receive immediate information in regard to livestock and saleyard information. Arena Digital technology has been introduced to saleyards throughout Australia since February 2016 with positive feedback and support. It has the support from Australian Livestock Markets Association and Meat and Livestock Association with both Associations providing content for saleyards to displayed through this television medium. The content includes market updates and news, industry information and biosecurity information etc. Arena Digital technology also allows for real time messaging for Saleyards staff to display important messages throughout the sale day.

BACKGROUND:

Emerald Saleyards generally provides opportunity for fixed advertising and event advertising such as bull sales etc. There is currently no provision for digital advertising and the offering from Arena Digital provides another medium for local businesses to advertise to saleyard patrons.

Arena Digital is an Australian owned company operating since 2009. The company was foundered by former England soccer player Paul Stewart and Carl Rogers. Carl has over 20 years’ experience in the digital advertising industry, specialising in digital-out-of-home systems and place based advertising networks. Arena Digital utilises the power of in-house television systems for target advertising. They launched their first network in 2009 supplying Stratco with an in-store television network across all their branches. The television system was designed to increase sales of Stratco’s products and services by promoting them on-screen to customers in store.

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With the successful outcome from the Stratco network Arena Digital then secured agreements with other Australian Building and Hardware centres to provide them with similar systems including Home Timber, Mitre10, Dahlsens and K&D Warehouse where they are still operating in today.

COMMENT:

The provision of this digital information service, at no cost to Council, provides an additional electronic medium to provide information to saleyard patrons on a real-time basis. Indications are that the television would be installed within the canteen area. However, request has been made for consideration of installation of a digital screen within the saleyard complex for easier access to patrons.

Arena Digital have installed SaleYard television at various saleyards throughout Australia and in Queensland at Silverdale, Nebo, Sarina, Beaudesert and Dalby.

A copy of SaleYard Television brochure is attached. Arena Digital website is http://www.arenadigital.com.au


Statutory:Not applicable.

Policy:Not applicable.

Financial: (Including whole of life costs where application)The advertising strategy comes to no cost to the Council. Costs for installation and maintenance of the system are derived from local business sponsorship and advertising.

Social:The use of this digital medium provides a real-time information source to keep saleyard patrons informed of Emerald saleyard information and activities.

Corporate Plan:Supporting our local economy.


Operational:The Emerald Saleyard will need to ensure information is kept up to date. Any operational risk in respect to advertising will be a matter between Arena Digital and the business advertiser. However, Council will need to ensure the advertising is appropriate.

Strategic:This technology has the potential to reach a greater audience and is a great opportunity for local businesses to market themselves in a cost effective and modern user friendly manner.

Reputation:This type of advertising is not new and is offered through other business operations. Council will need to ensure that the advertising is appropriate and that real-time message is accurate and up to date.

Project:No risk identified.

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Political:Council needs to ensure that the advertising is appropriate.

Environmental:No risk identified.


No engagement with Saleyard patrons has occurred to date. Discussion has occurred with Forbes Saleyards and they are very supportive of the benefit this system provides to its saleyard facility and patrons.

CONCLUSION:

This technology has the potential to be beneficial for the Emerald Saleyards as well as the local business that get involved with the marketing strategy. The ability to provide real-time information will be beneficial to saleyard patrons. SaleYard Television also provides the Emerald Saleyards with another communication medium to its stakeholders.

ATTACHMENTS:

SaleYard TV Brochurehttp://www.arenadigital.com.au

Andrew EatonCoordinator Saleyards


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Emerald Airport Hangar And Office Building


11 October 2016

DV:MWInformation Report

EXECUTIVE SUMMARY:

Following the liquidation of Advanced Aviation Group Pty Ltd, Council has exercised its rights as lessor due to default of lease and claimed ownership of fixtures on airport land, being hangar and demountable office building at the Emerald Airport. Council took possession of the buildings on 1 July 2016. To maximise the best leasing opportunities for these buildings, it is desirable that some improvement works are undertaken to assist in attracting desirable aviation operators and enhance Council's ability to attract commercial rents. The information in the report is provided for the purpose of informing Council in regard to potential additional budget allocation required for Emerald Airport in the 2016/17 budget and which will form part of the impending budget review process.

DETAILS:

Council will be aware of information provided previously in regard to the liquidation of Advanced Aviation Group Pty Ltd and Council taking possession of the buildings/fixtures on its airport land.

Council has commissioned independent valuations of buildings for Council's asset register and lease opportunities – on an 'as is' basis and refurbished basis. The valuation information is not to hand at the time of preparing this report, but the information should be to hand prior to the Finance and Infrastructure Committee meeting.

This information is being provided to the Finance and Infrastructure Committee, should it be determined to refurbish the buildings to maximise leasing opportunity, so that Councillors have information in regard to any request for financial appropriation within 2016/17 budget review 1 considerations.

REMEDIAL WORK REQUIRE TO OPTIMISE RENTAL RETURN

RUBBISH REMOVAL Old tyres 44 gallon drums Old pallet of batteries Broken furniture Archive documents, books, manuals and broken furniture Old car

TOTAL = (TBA) To be undertaken internally by Council staff

HANGAR: Full internal professional clean = $1,200 Full builders inspection = $1,500 Full electrical inspection = $1,200 Electrical work to be undertaken to separate the single electricity source and create two (2)

separate meters for the front office building and the hangar = $2,000 Hangar toilets – the hangar has no toilet facilities or internal plumbing. A recommendation is to

construct dual toilets = $40,000

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Kitchen/kitchenette. The hangar has no kitchen facility or internal taps/plumbing. To put in a kitchen with plumbing = $20,000

Signage removal from high parts of the external hangar = $1,100 Full pest control = $900 Property valuation = $750 Legal/lease costs for new tenants = $3,000 Replace building and window locks = $700 Paint internal offices. Very basic tidy up = $2,400 Security camera installation for airport operations monitoring of building = $3,800

TOTAL = $78,550 (excl. GST)

FRONT OFFICE BUILDING: All floor carpet replaced with basic covering = $2,500 Full pest control = $500 Full internal clean = $1,200 Full building inspection = $1,500 Full electrical inspection = $1,200 New hot water system. The Liquidator sold the hot water system that was part of the building =

$1,500 Paint interior and exterior, basic tidy up = $4,500 Legal/lease costs for new tenants = $1,500 Replace building and window locks = $400 Full property valuation = $750 Security camera installation for airport operations monitoring of building = $3,800 Toilet repairs. Both the main toilet and rear building toilet require replacement = $1,500 The kitchen has deteriorated and is mostly irreparable. Basic replacement = $8,000 The air-conditioning units require servicing and possibly up to four (4) require replacement = $6,000 Tiling is required around kitchen and both toilets. Basic tidy up = $1,900

TOTAL = $ 36,750 (excl. GST)

EXTERIOR: Realign the boundary fence around the front office building. Changes are required so that the

building becomes a landside building and no longer an airside building. This will separate it from the Hangar. Changes will also be required to airport TSP and maps as per OTS regulations = $2,500

Create a small footpath from the road to office front door, WHS = $1,500

TOTAL = $4,000 (excl. GST)

GRAND TOTAL OF ENTIRE PROJECT = $119,300 (excl. GST)

Funds for remedial works will be identified within Council's 2016/17 budget review 1 considerations and it will be proposed that any funds required be provided from Airport reserve fund.

LEASING OPPORTUNITIES

It is desirable that a similar type business is attracted to lease the hangar, that provides for aircraft servicing and which provides local job opportunity. A number of enquiries have been made in regard to the facilities.

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ATTACHMENTS:

Nil

David VossManager Airport


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GENERAL BUSINESS

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