Agenda: Date€¦ · 2016/17 QUARTERLY PROGRESS REPORT SEPTEMBER 2016 AGAINST GOAL 10 - WORKING...

Agenda: Corporate & Works Committee

Date: Monday 7 November 2016

Time: 6.00pm

Co

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Outline of Meeting Protocol & Procedure:

The Chairperson will call the Meeting to order and ask the Committee/Staff to present apologies or late

correspondence.

The Chairperson will commence the Order of Business as shown in the Index to the Agenda.

At the beginning of each item the Chairperson will ask whether a member(s) of the public wish to address the

Committee.

If person(s) wish to address the Committee, they are allowed four (4) minutes in which to do so. Please direct

comments to the issues at hand.

If there are persons representing both sides of a matter (eg applicant/objector), the person(s) against the

recommendation speak first.

At the conclusion of the allotted four (4) minutes, the speaker resumes his/her seat and takes no further part in

the debate unless specifically called to do so by the Chairperson.

If there is more than one (1) person wishing to address the Committee from the same side of the debate, the

Chairperson will request that where possible a spokesperson be nominated to represent the parties.

The Chairperson has the discretion whether to continue to accept speakers from the floor.

After considering any submissions the Committee will debate the matter (if necessary), and arrive at a

recommendation (R items which proceed to Full Council) or a resolution (D items for which the Committee has

delegated authority).

Recommendation only to the Full Council:

Such matters as are specified in Section 377 of the Local Government Act and within the ambit of the

Committee considerations.

The voting of money for expenditure on works, services and operations.

Rates, Fees and Charges.

Donations

Matters which involve broad strategic or policy initiatives within responsibilities of the Committee.

Matters not within the specified functions of the Committee.

Asset Rationalisation.

Corporate Operations:-

- Statutory Reporting;

- Adoption of Council's Community Strategic Plan, Delivery Program and Operational Plan;

- Delegations; and

- Policies.

Tenders as per Regulation requirements.

Leases required to be determined by Full Council by specific legislative requirements

Matters reserved by individual Councillors in accordance with any Council policy on "safeguards" and

substantive changes.

Delegated Authority:

General financial and corporate management of the Council, except those specifically excluded by statute, by

Council direction or delegated specifically to another Committee.

Note: This not to limit the discretions of nominated staff members exercising Delegated Authorities granted by

the Council.

Statutory reviews of Council's Delivery Program and Operational Plan;

Finance Regulations, including:-

- Authorisation of expenditures within budgetary provisions where not delegated;

- Quarterly review of Budget Review Statements;

- Quarterly and other reports on Works and Services provision; and

- Writing off of rates, fees and charges because of non-rateability, bad debts, and impracticality of

collection.

Auditing.

Property Management.

Asset Management.

Works and Services - Monitoring and Implementations.

Legal Matters and Legal Register.

Parks and Reserves Management.

Infrastructure Management, Design and Investigation.

To require such investigations, reports or actions as considered necessary in respect of matters contained within

the Business Agenda (and as may be limited by specific Council resolution).

Confirmation of the Minutes of its Meetings.

Any other matter falling within the responsibility of the Corporate & Works Committee and not restricted by the

Local Government Act or required to be a Recommendation to Full Council as listed above.

Committee Membership: 7 Councillors

Quorum: The quorum for a Committee meeting is 4 Councillors.

Woollahra Municipal Council

Corporate & Works Committee Agenda 7 November 2016


Notice of Meeting

2 November 2016

To: Her Worship the Mayor, Councillor Toni Zeltzer ex-officio

Councillors Peter Cavanagh (Chair)

Greg Levenston

Andrew Petrie

Deborah Thomas

Susan Wynne (Deputy)

Jeff Zulman

Dear Councillors

Corporate & Works Committee – 7 November 2016

In accordance with the provisions of the Local Government Act 1993, I request your attendance at

Council’s Corporate & Works Committee meeting to be held in the Council Chambers, 536

New South Head Road, Double Bay, on Monday 7 November 2016 at 6.00pm.

Gary James

General Manager



Meeting Agenda

Item Subject Page

1. Leave of Absence and Apologies

2. Late Correspondence

3. Declarations of Interest

Items to be Decided by this Committee using its Delegated Authority

D1 Confirmation of Minutes of Meeting held on 24 October 2016 - 16/152623 .............. 7

D2 Delivery Program 2013 to 2017 and Operational Plan 2016/17 Quarterly

Progress Report September 2016 against Goal 10 - Working together and Goal

11 - A well managed Council (FY230) - 16/130495 ................................................... 9

D3 Capital Works Program - Quarterly Progress Report September 2016 (FY230-

02) - 16/151430 .......................................................................................................... 39

Items to be Submitted to the Council for Decision with Recommendations from this

Committee

R1 Tender SC3595 Rose Bay Pedestrian Trail Stage 2 - 16/146153 .............................. 79

R2 Tender SC3593 Suffolk Street Footpath Upgrade - 16/147012 ................................. 85

R3 2016/17 Budget Review for the Quarter Ended

30 September 2016 - 16/142040 ................................................................................ 91



Item No. D1

Item No: D1 Delegated to Committee

Subject: CONFIRMATION OF MINUTES OF MEETING HELD ON 24

OCTOBER 2016

Author: Sue O'Connor, Secretarial Support - Governance

File No: 16/152623

Reason for Report: The Minutes of the Corporate & Works Committee of 24 October 2016

were previously circulated. In accordance with the guidelines for

Committees’ operations it is now necessary that those Minutes be

formally taken as read and confirmed.

Recommendation:

That the Minutes of the Corporate & Works Committee Meeting of 24 October 2016 be taken as

read and confirmed.



Item No. D2


Subject:

DELIVERY PROGRAM 2013 TO 2017 AND OPERATIONAL PLAN

2016/17 QUARTERLY PROGRESS REPORT SEPTEMBER 2016

AGAINST GOAL 10 - WORKING TOGETHER AND GOAL 11 - A

WELL MANAGED COUNCIL (FY230)

Author: Don Johnston, Chief Financial Officer

Approver: Stephen Dunshea, Director - Corporate Services

File No: 16/130495

Reason for Report: To review the status of the Priorities and Actions in Council’s Delivery

Program 2013 to 2017 and Operational Plan 2015/16 as at 30 September

2016.

Recommendation:

THAT the September 2016 Quarterly Progress Report on Goal 10 (Working together) and Goal 11

(A well-managed Council) of Council’s Delivery Program 2013 to 2017 and Operational Plan

2016/17 be received and noted.

Background

Council adopted its Delivery Program 2013 to 2017 and Operational Plan 2016/17 (DPOP) in June

2016 in accordance with the Integrated Planning and Reporting (IPR) Legislation for NSW Local

Government. The Delivery Program and Operational Plan are two of the key strategic planning

documents that comprise Council’s IPR Framework.

It is a requirement under the IPR Legislation that Council report on the progress of its Delivery

Program at least every six months. In response to this requirement, and in order to ensure that

Council’s reporting to the community is transparent, timely and manageable under the legislation,

progress reports on the DPOP are presented to Council quarterly for the periods ending 30

September, 31 December, 31 March and 30 June each year.

The framework for quarterly progress reports is consistent with the structure of the Delivery

Program and Operational Plan which have been developed around the following interrelated themes

and supporting goals:

Theme: Community well-being Goal 1: A connected and harmonious community

Goal 2: A supported community

Goal 3: A creative and vibrant community

Theme: Quality places and spaces Goal 4: Well planned neighbourhoods

Goal 5: Liveable places

Goal 6: Getting around

Theme: A healthy environment Goal 7: Protecting our environment

Goal 8: Sustainable use of resources

Theme: Local prosperity

Goal 9: Community focused economic development

Theme: Community leadership and participation

Goal 10: Working together

Goal 11: A well-managed Council



Item No. D2

Council’s Quarterly DPOP Progress Report for the period to 30 September 2016 for Goals 10 and

11, being the goals most relevant to the Corporate and Works Committee, is provided as

Annexure 1.

Progress comments for all DPOP Actions are provided in the tables of Annexure 1. Council

officers provide updates on these comments on an ongoing basis for internal management purposes,

with the comments collated at the end of the quarter for reporting to Council and the community.

A tick in the final column of the tables in Annexure 1 headed “Updated Comments” indicates that

the comments relating to that action have been updated since the previous quarterly report to

Council. The purpose of the tick is to enable Councillors and other readers of the report to easily

identify where an action status has been updated.

Statistics summarising the status of DPOP Actions are included in the introductory pages of

Annexure 1.

Adopted Notices of Motion (NOM):-

To assist with tracking progress in relation to Corporate & Works (C&W) NOM, Annexure 2 to the

Quarterly Progress Report provides progress comments specifically for all C&W NOM.

In keeping with good corporate governance practices, the Corporate & Works Committee will track

the progress of all NOM through Annexures 2, 3 and 4 with separate reports presented to the

Community & Environment Committee (31 October 2016) and Urban Planning Committee (31

October 2016) to track NOM relevant to those Committees.

The following table presents a summary of the status of all NOM as at 30 September 2016:-

Corporate

& Works

Committee

Community

&

Environment

Committee

Urban

Planning

Committee

TOTAL

Total NOM at 30 June 2016 3 5 3 11

New NOM – September Quarter 5 1 2 8

Total NOM at 30 September 2016 8 6 5 19

Less Reported as Completed (2) (0) (0) (2)

Total outstanding as at 30 September 2016 6 6 5 17

Reported as ‘In Progress’ 5 6 1 12

Reported as ‘Not commenced’ 1 0 4 5

Conclusion

It is recommended that the September 2016 Quarterly Progress Report against Goal 10 (Working

together) and Goal 11 (A well-managed Council) of Council’s Delivery Program 2013 to 2017 and

Operational Plan 2016/17, be received and noted.

Annexures

1. DPOP Quarterly Report - Corporate & Works - September 2016 ⇩

2. Notices of Motion (NOM) Status Report as at 30 September 2016 (C&W). ⇩

3. Notices of Motion (NOM) Status Report as at 30 September 2016 (C&E) ⇩

4. Notices of Motion (NOM) Status Report as at 30 September 2016 (UP) ⇩



Annexure 1 DPOP Quarterly Report - Corporate & Works - September 2016



Annexure 2 Notices of Motion (NOM) Status Report as at 30 September 2016

(C&W).




(C&E)




(UP)



Item No. D3


Subject: CAPITAL WORKS PROGRAM - QUARTERLY PROGRESS

REPORT SEPTEMBER 2016 (FY230-02)

Author: Don Johnston, Chief Financial Officer

Approver: Tom O'Hanlon, Director - Technical Services

File No: 16/151430

Reason for Report: To provide the Committee with an update on the status of projects in the

2016/17 Capital Works Program, for the quarter ended 30 September 2016

Recommendation:

THAT the Capital Works Program – Quarterly Progress Report for the quarter ended 30 September

be received and noted.

Background:

As part of Council’s quarterly reporting under Council’s Integrated Planning and Reporting

Framework, this report is presented to the Corporate & Works Committee detailing the status of

projects in the Capital Works Program.

Consistent with the approach adopted for quarterly reporting on the Priorities and Actions contained

in Council’s Delivery Program and Operational Plan, the Capital Works Program Status Report is

presented by Theme, Goal, Strategy and Priority. Specific projects supporting the Priority are then

listed in the table under the heading “Actions”.

A tick in the final column headed “Updated Comments” indicates the comments relating to that

action have been updated since the previous quarterly report to Council. The purpose of the tick is

to enable Councillors and other readers of the report to easily identify where an action status has

been updated.

The Capital Works Program Status Report for the period ended 30 September 2016 is attached as

Annexure 1. It includes, in the introductory pages, a snapshot of the Capital Works Program with a

high level summary according to project status including a comparison from last quarter, Budget,

Actual and Budget Remaining, statistics and charts.

Over-expended projects, showing a negative amount in the Budget Remaining column, have been

addressed and recommended for funding in the September Budget Review unless otherwise noted

in the progress comments. Conclusion:

It is recommended the September 2016 Quarterly Capital Works Program Progress Report be

received and noted.

Annexures

1. Quarterly Report - Capital Works Program - September 2016 ⇩



Annexure 1 Quarterly Report - Capital Works Program - September 2016



Item No. R1

Item No: R1 Recommendation to Council

Subject: TENDER SC3595 ROSE BAY PEDESTRIAN TRAIL STAGE 2

Author: Rod Ward, Project Manager Open Space

Approvers: Tom O'Hanlon, Director - Technical Services

Richard Ladlow, Acting Manager - Capital Projects

File No: 16/146153

Reason for Report: To recommend to Council the acceptance of a tender

Recommendation:

A. THAT Council enter into a Contract with Stateline Asphalt Pty Ltd for the Rose Bay Pedestrian

Trail Stage 2 - for $286,286.00 (excluding GST).

B. THAT successful and unsuccessful tenderers be advised accordingly.

Background:

The Rose Bay Pedestrian Trail has been developed following the adoption of the Woollahra Bicycle

Strategy in 2009 to implement the recommendations contained in the strategy for safe, practical

cycling routes in the Woollahra LGA.

Stage 1 is completed and delivered an off road pathway along Old South Head Road from

O’Sullivan road to Newcastle Street, Rose Bay creating a safe off road shared pedestrian / cycle

pathway.

Tender SC3595 is for Stage 2 construction of the Rose Bay Pedestrian Trail – a shared pedestrian /

cycle pathway at Newcastle Street, between Old South Head Road and Norwich Lane. This is listed

as a critical link in the Woollahra Bicycle Strategy connecting Old South Head Road to the Rose

Bay shopping area on New South Head Road.

Stage 2 construction of the Rose Bay Pedestrian Trail is primarily an off road pathway 2.5metres

wide, 525 metres in length and constructed on the road verge of Newcastle Street between Old

South Head Road and Norwich Lane.

The project will also see:

A central pedestrian refuge will be constructed in Newcastle Street adjacent to Albemarle

Street to assist pedestrians crossing the road at this point. Kerb ramps will be constructed on

both sides of the road to facilitate prams, wheelchairs and mobility scooters. This work is

funded from the Traffic Infrastructure Budget.

The widening of the verge at no’s 45 & 47 Newcastle Street, near Norwich Lane, to facilitate

the new shared path.

The retention of existing trees in front of no’s 45 and 47 Newcastle Street.

The reconstruction and extension of the driveways of no’s 45 and 47 Newcastle Street from

the property line to the new kerb line.



Item No. R1

The retention of existing pedestrian pathway from Norwich Lane along the properties

frontage. This will avoid possible conflict with cyclists and passers-by with residents

accessing their property by utilising the existing pathway as a separate path to access their

property.

Provide additional understory planting around the trees in the new garden beds.

The area of works is shown in the following aerial photograph,

Invitation to Tender

Tender SC3595 Rose Bay Pedestrian Trail Stage 2 was advertised in the Tenders section of the Sydney

Morning Herald commencing on Tuesday 13 September 2016 and in the Wentworth Courier on

Wednesday 14 September 2016.

A Pre-Tender meeting was held on 28 September 2016 at 11.00am. All tenderers who had

registered their interest in the tender were invited to attend. Questions raised by tenderers were

answered and a record of the questions and answers was circulated to all tenderers who attended,

and was placed on Council’s tender website for those who were unable to attend but had registered

for the tender documents.

Tenders for this project closed at 2.30pm on Thursday 6 October 2016. A total of eight (8) tenders were

received prior to the closing date and time.

Area of Works



Item No. R1

All the tenders received by the closing date and time are listed in Table 1:

Table 1

TENDERER

Mansour Paving Pty Ltd

Stateline Asphalt Pty Ltd

OC Civil Pty Ltd

Melhamcorp Pty Ltd

KK Consultants Pty Ltd

Roadlink Asphalt Pty Ltd

Mack Civil Pty Ltd

Ally Property Pty Ltd

Tender Assessment

The tender assessment panel comprised David Byatt Purchasing Coordinator, as the convenor and

independent member of the tender panel, Caitlin Moffat, Team Leader as the Commissioning Officer

and Rod Ward the Project Manager for the delivery of the Project.

Council has resolved that a probity adviser should be included during the tender assessment stage for

high risk, high value or sensitive projects. This contract was not deemed to meet this definition and it

was agreed that a probity adviser should not be included in the tender process.

Prior to the closing date, on 6 October 2016 the tender panel agreed on the following weightings that

would be used against the advertised selection criteria:

Cost and Pricing 45%

Demonstrated experience and capacity 25%

Program & Methodology 15%

Management systems (OHS, quality & environment) 10%

Duration of Works 5%

The tender panel carried out an initial evaluation of the tenders and deemed all complying.

Tenders deemed conforming and their lump sum prices are listed in Table 2:

Table 2

TENDERER Lump sum tender

price (excl GST)

Duration (weeks)

Mansour Paving Pty Ltd $367,290.73 9

Stateline Asphalt Pty Ltd $286,286.00 6

OC Civil Pty Ltd $388,655.00 8

Melhamcorp Pty Ltd $513,179.50 6

KK Consultants Pty Ltd $344,315.00 8

Roadlink Asphalt Pty Ltd $239,748.00 3

Mack Civil Pty Ltd $362,600.29 8

Ally Property Pty Ltd $327,398.00 5

The tenders were assessed in accordance with the selection criteria stated in the tender documents.



Item No. R1

The tenders were given a preliminary score on each item of the selection criteria, which resulted in a

total score out of 100. Tenderers were ranked in accordance with their scores.

Assessment of highest ranked tenderers

Table 3 shows the scores and rankings of all tenders considered.

Table 3.

CRITERIA

TENDERER

(ranked by total score) D

emon

stra

ted

Exp

erie

nce

an

d

Cap

ab

ilit

y (

25%

)

Pro

gra

m a

nd

Met

hod

olo

gy

(15%

)

Du

rati

on

of

Work

s (5

%)

Qu

ali

ty

Man

agem

ent

Syst

ems

(10%

)

Su

b T

ota

l N

on

Pri

cin

g C

rite

ria

Cost

an

d P

rici

ng

(45%

)

TO

TA

L S

CO

RE

(100%

)

Stateline Asphalt Pty Ltd 15.63 15.00 2.50 7.50 40.63 37.68 78.31

KK Consultants Pty Ltd 15.63 15.00 1.88 9.38 41.89 31.33 73.22

Mack Civil Pty Ltd 15.63 15.00 1.88 10.00 42.51 29.75 72.26

Roadlink Asphalt Pty Ltd 11.72 2.50 5.00 7.50 26.72 45.00 71.72

Ally Property Pty Ltd 11.72 6.25 3.00 7.50 28.47 32.95 61.42

Mansour Paving Pty Ltd 14.84 8.75 1.67 6.25 31.51 29.37 60.88

Melhamcorp Pty Ltd 13.28 15.00 2.50 5.63 36.41 21.02 57.43

OC Civil Pty Ltd 14.06 6.25 1.88 4.38 26.57 27.76 54.33

1. Cost and Pricing: the lowest price is deemed to achieve 100% of the score for this criterion. The lowest price is

divided by the other tenderers’ prices to give their respective scores as percentages.

2. Demonstrated Experience and Capability: Information was requested pertaining to size and value of past works,

types of works performed and complexity of past works. From this information the tender panel assessed the level

of demonstrated experience for each tenderer

3. Program & Methodology: Information was requested pertaining to project program, construction management

plan, traffic management plan and environmental management plan. From the information received the evaluation

panel assessed the contractor’s ability to sequentially carry out the works.

4. Management Systems (OHS, Environmental and Quality): Assessment of Quality, Environment controls and OH

& S, scored according to comprehensiveness of documentation and evidence of it being applied to past projects.

The highest scores were allocated for systems with independent accreditation

5. Duration of Works: The shortest time is deemed to achieve 100% of the score for this criterion. The shortest time

is divided by other tenderer’s times to give their respective scores as percentages

Comment

The two highest scoring tenders are Stateline Asphalt Pty Ltd and KK Consultants Pty Ltd.

The following is a brief summary of each of these tenders’ submissions.

1. Stateline Asphalt Pty Ltd

Stateline Asphalt Pty Ltd tendered the second lowest lump sum price ($286,286.00) to undertake the

works and received a high score for the non-pricing criteria (40.63) and the highest overall score.

Stateline Asphalt achieved this by having a professionally qualified management team and well-

documented quality management systems to ensure all Work Health and Safety, Environment and

Quality Assurance controls are adequately addressed during construction.



Item No. R1

Stateline Asphalt Pty Ltd is a medium sized civil construction company that has good experience

civil works across the local government sector. They specialise in road infrastructure works and are

well known to Council having recently completing several projects for Woollahra Council including

upgrades to Clarendon Street and Vaucluse Road – Vaucluse. Both of these recent jobs were

successfully delivered to a very high quality and so it is with confidence that they can be engaged to

successfully undertake this project.

2. KK Consultants Pty Ltd

KK Consultants Pty Ltd submitted the forth lowest lump sum price ($344,315) and with their third

party accreditation for OH &S, Environmental management and Quality management systems, as

well with a professional approach to the program and methodology greatly assisted their overall

score to a ranking of second.

KK Consultants have completed projects for a range of local government bodies, including

Woollahra Council and are well regarded. However on this occasion their price of $344,315 is

$58,029 higher than Stateline Asphalt Pty Ltd and is considered to be financially not competitive.

Therefore KK Consultants Pty Ltd was not considered further.

Tender Assessment Panel Opinion

The tender panel is of the opinion that the tender of Stateline Asphalt Pty Ltd is the most

advantageous to Council in terms of value for money, quality of work, competency and the ability

to complete the works within an acceptable time frame.

Identification of Income & Expenditure:

All figures below exclude GST.

The budget for this project is Open Space and Trees – Parks and Reserves – 01079 and Engineering

Services – Traffic infrastructure – 01183.

The total budget allocation for this project was $ 280,000. To date approximately $18,000.00 has

been spent on survey, consultation, detailed design and project management. Therefore the

remaining available budget is approximately $262,000. The preferred tenderer’s lump sum price for

this project is $286,286. The estimated remaining project cost is $ 290,000 which includes civil

works, project management and contingencies.

Further funds are to be drawn from Stage 3 Rose Bay Pedestrian Trail and reported in the December

quarterly review.

Conclusion:

The tender panel recommends that Council enter into a Contract with Stateline Asphalt Pty Ltd for

Rose Bay Pedestrian Trail Stage 2 – for the sum of $286,286.00 (excluding GST).

Annexures

Nil



Item No. R2


Subject: TENDER SC3593 SUFFOLK STREET FOOTPATH UPGRADE

Author: Rod Ward, Project Manager Open Space

Approvers: Tom O'Hanlon, Director - Technical Services

Richard Ladlow, Acting Manager - Capital Projects

File No: 16/147012

Reason for Report: To recommend to Council the acceptance of a tender

Recommendation:

A. THAT Council enter into a Contract with Mack Civil Pty Ltd for Suffolk Street, Paddington –

Footpath Upgrade Project for the sum of $267,135.60 (excluding GST).

B. THAT successful and unsuccessful tenderers be advised accordingly

Background:

As part of our infrastructure renewal strategy, the footpath in Suffolk Street, Paddington was

identified as requiring renewal and upgrade due to the significant impact tree roots have had on the

footpath area. The project is included in the 2016/17 Capital Works Programs.

A resident consultation survey was conducted to determine residents’ preference for footpath

paving type and options for tree replacements.

The majority consensus resulting from the public consultation process was to proceed with

removing existing trees and replacement with a more suitable tree species more appropriately

spaced with Paddington mix concrete paving to replace the existing asphalt.

The scope of works developed following public consultation includes:

Demolition of existing footpath pavement and garden beds.

Replacement of stormwater pipes from property to kerb.

Construction of new concrete paving with Paddington mix concrete.

Construction of garden beds and tree pits with structural soils to aid in the establishment of

new mature street trees.

A separate Council tree contractor will remove the existing trees and install the new trees and

manage their establishment in conjunction with Open Space and Trees staff. This work is not part of

this tender. The area of works is shown in the following aerial photograph:



Item No. R2

Invitation to Tender

Tender SC3593 for Suffolk Street Paddington Footpath Upgrade Project was advertised in the

Tenders section of the Sydney Morning Herald commencing on Tuesday 13 September 2016, and in

the Wentworth Courier on Wednesday 14 September 2016. The tender was also available through

Council’s tender website.

A Pre-Tender meeting was held on 28 September 2016 at 10.00am. All tenderers who had

registered their interest in the tender were invited to attend. Questions raised by tenderers were

answered and a record of the questions and answers was circulated to all tenderers who attended,

and was placed on Council’s tender website for those who were unable to attend but had registered

for the tender documents.

Four addendums to the tender were also issued to the attendees and posted on Council’s tender

website.

Tenders for this project closed at 2.30pm on Thursday 6 October 2016. A total of ten (10) tenders

were received prior to the closing date and time. All the tenders received by the closing date and

time are listed in Table 1:

Table 1

Mack Civil Pty Ltd

Roadlink Asphalt Pty Ltd

Mansour Paving Pty Ltd

KK Consultants Pty Ltd

Starcon Group Pty Ltd

Melhamcorp Pty Ltd

OC Civil Pty Ltd

Urban Civil Projects Pty Ltd

Stateline Asphalt Pty Ltd

State Civil Pty Ltd

Area of Works



Item No. R2

The tender assessment panel comprised David Byatt, Purchasing Coordinator as the convenor and

independent member of the tender panel, Yasas De Silva, Team Leader Infrastructure Assets as the

Commissioning Officer and Rod Ward, Project Manager for the delivery of the Project.

Council has resolved that a probity adviser should be included during the tender assessment stage

for high risk, high value or sensitive projects. This contract was deemed to not meet this definition

and it was agreed that a probity adviser should not be included in the tender process.

Prior to the closing date, the tender panel agreed on the following weightings that would be used

against the advertised selection criteria:

Cost and Pricing 45%

Demonstrated experience and capacity 25%

Program and methodology 15%

Quality Management (OHS, quality & environment) 10%

Duration of works 5%

One tender was deemed non-conforming due to incomplete documentation and rejected for further

assessment. All other tenders received were deemed conforming and their lump sum prices and

duration of works are listed in Table 2:

Table 2

TENDERER Lump Sum Tender

Price (excl GST)

Duration

Mack Civil Pty Ltd $ 267,135.60 8 weeks

Roadlink Asphalt Pty Ltd $ 230,650.00 6 weeks

Mansour Paving Pty Ltd $ 284,571.14 9 weeks

KK Consultants Pty Ltd $ 380,277.50 6 weeks

Melhamcorp Pty Ltd $ 363,246.00 8 weeks

OC Civil Pty Ltd $ 314,230.00 8 weeks

Urban Civil Projects Pty Ltd $ 277,475.00 8 weeks

Stateline Asphalt Pty Ltd $ 259,452.00 7 weeks

State Civil Pty Ltd $ 251,917.00 4 weeks

The tenders were assessed in accordance with the selection criteria stated in the tender documents.

The tenders were given a preliminary score on each item of the selection criteria, which resulted in

a total score out of 100. Tenderers were ranked in accordance with their scores.

Post-Tender Interviews were not required as the two highest ranked tenderers are either known to

Council, having completed similar works in the recent past or have come highly recommended by

all referees contacted.

Assessment of highest ranked tenderers

Table 3 shows the scores and rankings of all tenders considered.



Item No. R2

Table 3

CRITERIA

TENDERER

(ranked by total score)

Dem

on

stra

ted

Exp

erie

nce

an

d

Cap

ab

ilit

y (

25%

)

Pro

gra

m a

nd

Met

hod

olo

gy

(15%

)

Du

rati

on

of

Work

s (5

%)

Qu

ali

ty

Man

agem

ent

Syst

ems

(10%

)

Su

b T

ota

l N

on

Pri

cin

g C

rite

ria

Cost

an

d P

rici

ng

(45%

)

TO

TA

L S

CO

RE

(100%

)

Mack Civil Pty Ltd 15.63 15.00 2.50 10.00 43.13 38.85 81.98

Stateline Asphalt Pty Ltd 14.84 11.25 2.86 7.50 36.45 40.00 76.45

KK Consultants Pty Ltd 15.63 15.00 3.33 9.38 43.34 27.29 70.63

Roadlink Asphalt Pty Ltd 11.72 2.50 3.33 7.50 25.05 45.00 70.05

State Civil Pty Ltd 10.94 2.60 5.00 6.88 25.42 41.20 66.62

Mansour Paving Pty Ltd 14.84 6.25 2.22 6.25 29.56 36.47 66.03

Urban Civil Pty Ltd 13.28 6.25 2.50 6.25 28.28 37.41 65.69

Melhamcorp Pty Ltd 13.28 15.00 2.50 5.63 36.41 28.57 64.98

OC Civil Pty Ltd 14.06 6.25 1.88 4.38 26.57 33.03 59.60

1. Cost and Pricing: the lowest price is deemed to achieve 100% of the score for this criterion. The lowest price is

divided by the other tenderers’ prices to give their respective scores as percentages.

2. Demonstrated Experience and Capability: Information was requested pertaining to size and value of past works,

types of works performed and complexity of past works. From this information the tender panel assessed the level

of demonstrated experience for each tenderer

3. Program & Methodology: Information was requested pertaining to project program, construction management

plan, traffic management plan and environmental management plan. From the information received the evaluation

panel assessed the contractor’s ability to sequentially carry out the works.

4. Management Systems (OHS, Environmental and Quality): Assessment of Quality, Environment controls and OH

& S, scored according to comprehensiveness of documentation and evidence of it being applied to past projects.

The highest scores were allocated for systems with independent accreditation

5. Duration of Works: The shortest time is deemed to achieve 100% of the score for this criterion. The shortest time

is divided by other tenderer’s times to give their respective scores as percentages

Comment

The two highest scoring tenders are Mack Civil Pty Ltd and Stateline Asphalt Pty Ltd. Both of these

companies submitted competitive tenders. The following is a brief summary of each of these

tenderers’ submissions

1. Mack Civil Pty Ltd

Mack Civil Pty Ltd submitted a lump sum price of $ 267,135.60 and scored highest in both the non-

price criteria 43.13 / 45 and overall score of 81.98 / 100. Mack Civil have a highly developed

management system and have achieved third party (National) accreditation to ensure that all Work

Health and Safety, Environment and Quality Assurance controls are properly addressed during

construction.

Mack Civil have a professionally qualified management team and the stated duration of works of

eight (8) weeks is considered realistic and achievable. Mack Civil is a well-established company,

although not previously contracted by Woollahra Council, they have been engaged by several local

governments including Waverley Council, Willoughby City Council City and Botany Bay Council

among others, to undertake projects of a similar nature.



Item No. R2

All contacted local government referees have provided very positive recommendations for Mack

Civil Pty Ltd and the quality of their work. It was also commented on that Mack Civil Pty Ltd are

very good at liaising with residents, an important aspect of the proposed works. This, along with the

detailed well thought out program and methodology submitted, gives confidence that the project

will be managed professionally to produce a high quality result.

2. Stateline Asphalt Pty Ltd

Stateline Asphalt Pty is a very capable construction company known to Council having completed a

number of projects for Woollahra Council recently. Stateline Asphalt Pty Ltd achieved the second

highest score 76.45 / 100 with a competitive tendered price of $259,452.00. Where they did not

score as well is with the non-price criteria (36.45 / 45) where their Quality Management systems do

not meet third party accreditation compared to Mack Civil Pty Ltd.

Although a capable contractor on this occasion considering the overall score and other project

recommendations Stateline Asphalt Pty Ltd was not considered further.

Community Consultation on the Concept Design

In May 2016 staff undertook a consultation process. A community survey form asked residents for

their preference between 2 options. Option A: Retention of some trees and footpaths in asphalt due

to the existing mature tree roots. Option B: Removal of all the trees as a complete renewal and

opportunity to standardise planting spacing and replace footpath with Paddington mix concrete.

26 residents voted for option B with 5 residents voting for option A. This is a strong result which

allowed for an option B design to be produced.

During the consultation process some residents expressed some views on tree species, often

opposing. The conclusion of this journey is as per the original consultation. That is Buckinghamia

cellsissima and Tristaniopsis laurina 'Luscious' will be the new species as per the Street Tree Master

Plan.

The proposed replacement tree species have been specified by our Arboriculture team who have

considered the area and the Council Street Tree Master Plan. A copy of this Master Plan is available

on Council’s website.

Tender Assessment Panel Opinion

The tender panel is of the opinion that the tender of Mack Civil Pty Ltd with a submitted price of

$ 267,135.60 (excluding GST) is the most advantageous to Council in terms of value for money,

quality of work and the ability to complete the works within an acceptable time frame.

Identification of Income & Expenditure:

All figures below exclude GST.

The budget for this project is from Engineering Services – Infrastructure Renewal – 01116.

The preferred tenderer’s lump sum price for this project is $267,136.



Item No. R2

Open Space and Tree works are estimated at $70,000 which includes tree removal, stump grinding,

supply of new species, planting and establishment.

The estimated project cost is $350,000 which includes civil works, tree replacement, project

management and contingencies.

Due to insufficient funds allocated to the project, funds will be sourced from the savings of other

Infrastructure Renewal Capital works projects. These changes will be made as part of the quarterly

budget review process.

Conclusion:

The tender panel recommends that Council enter into a Contract with Mack Civil Pty Ltd for

Suffolk Street, Paddington Footpath Upgrade Project – for the sum of $267,135.60 (excluding

GST).

Annexures

Nil



Item No. R3


Subject: 2016/17 BUDGET REVIEW FOR THE QUARTER ENDED

30 SEPTEMBER 2016

Author: Trang Banfield, Team Leader Financial Operations

Approvers: Don Johnston, Chief Financial Officer

Stephen Dunshea, Director - Corporate Services

Gary James, General Manager

File No: 16/142040

Reason for Report: To report on the review of the 2016/17 Budget for the quarter ended

30 September 2016

Recommendation:

A. THAT the report on the Budget Review for the quarter ended 30 September 2016

be received and noted.

B. THAT Council note the statement from Council’s Responsible Accounting Officer that

Council’s projected financial position at 30 June 2017, based on the forecasts outlined in this

report, will remain sound.

C. THAT the recommended variations to the 2016/17 budget outlined in the report be adopted.

Background:

The requirement for a quarterly review of the budget arises from Clause 203 of the Local

Government (General) Regulation 2005. It requires the responsible accounting officer of a Council

prepare and submit to the Council a budget review statement that shows, by reference to the

estimates of income and expenditure set out in the Operational Plan that the Council has adopted for

the relevant year, a revised estimate of the income and expenditure for that year. A budget review

statement must include or be accompanied by:

(a) a report as to whether or not the responsible accounting officer believes that the statement

indicates that the financial position of the council is satisfactory, having regard to the original

estimates of income and expenditure, and;

(b) if that position is unsatisfactory, recommendations for remedial action.

The Quarterly Budget Review takes into consideration the quarterly reviews of actions and

priorities in Council’s Delivery Program and Operational Plan. These reviews are presented by

relevant Goals to the Community & Environment, Urban Planning and Corporate & Works

Committees.

The Quarterly Budget Review report includes the statements required under the Office of Local

Government’s Quarterly Budget Review Statement (QBRS) Guidelines, being:



Item No. R3

Income and Expenses Statement (contained in the body of the report – page 4)

Capital Budget (contained in the body of the report – page 13)

Cash and Investments position (contained in the body of the report – page 19)

Key Performance Indicators (see Overall Financial Position – pages 2-3)

Contracts and Other Expenses (Annexure 4 )

In addition to these Statements, the Committee also receives a Balance Sheet forecast to 30 June

2017 (Annexure 1).

Discussion:

Overall Financial Position

The September 2016 quarterly review forecasts an increase in Council’s working funds position for

2016/17 of $11,823 which comprises the original budget surplus including rollovers of $366 and a

surplus at this review of $11,457. This forecast movement in Council’s 2016/17 working funds

position is outlined in the following table:

Budget Result

(Surplus) / Deficit

$

Original 2016/17 Budget (366)

September 2016 Review (11,457)

Forecast to 30 June 2017 (11,823)

The revised forecast movement in working funds will result in a Working Funds balance of

$2,831,605 at 30 June 2017. At this level it will be remain above Council’s benchmark level

(Arrears of Rates + Inventory) of $2,336,227.

A summary of major or notable budget variations proposed in the September Review is provided

below while full details of the recommended variations giving rise to the change in working funds

are provided later in the report.

Budget Variations

(Favourable)/U

nfavourable

$

Emergency Works arising from June storms:

Northland Rd Embankment Stabilisation

RMS grant funding

Transfer from Revotes & Rollovers Reserve

Transfer from Open Space & Community Facilities Reserve

400,000

(128,200)

(219,850)

(51,950)

Dumaresq Seawall Reconstruction

Transfer from E&IRL Reserve

299,098

(258,076)

Watsons Bay Seawall Reconstruction

RMS grant funding

Transfer from s94A

Transfer from Revotes & Rollovers Reserve

246,489

(29,205)

(200,795)

(16,489)



Item No. R3

Kiaora Place Library Post Completion Additional Works

Kiaora Place Library New Signage (Council Resolution)

Kiaora Place Commercial Lobby Door

Recovered Costs for Commercial Lobby Door

Transfer from Kiaora Reserve

Transfer from Property Reserve

297,240

42,000

40,000

(30,000)

(307,240)

(42,000)

Election Expenses

Transfer from Election Reserve

(362,500)

362,500

NSW Fire Brigades Contribution

NSW State Emergency Services Contribution

(237,636)

4,768

Street Lighting Charges (135,000)

Kiaora Place Net Changes

Transfer to Kiaora Place Reserve

(110,848)

110,848

McGarvie Street Footpath Reconstruction 100,000

The main variations presented in the September Review are a total of $1,024k in expenditure

relating to work undertaken arising from the June storms. In addition to the three capital projects

outlined above, a further $79k has been included in the operating budget for works associated with

the storms. Through a combination of deferring other projects, use of reserves and grant funding

this work has been fully funded in the Budget Review.

It is disappointing that Council could only secure $157k in grant funding from the RMS for these

works. In this regard, grant funding enquiries and applications have been made to the Office of

Emergency Response (OER), NSW Public Works, NSW Roads and Maritime Services (RMS) and

Office of Environment and Heritage (OEH).

To date, the following grants or “grant commitments” have provided to Council which has assisted

in progressing the repair and reconstruction of the damaged infrastructure, such as design work and

preliminary road works:

a. Northland Road (RMS Funding to repair the Road Component of the project) - $128,200

b. Marine Parade, Watsons Bay (RMS have committed to provide funds to repair the Road

Component of the project) - $29,205

NSW Public Works have advised that the damaged seawalls and embankment would be ineligible

for funding.

The OEH has advised that recent changes have been made to the Coastal Zone funding process

which requires projects to be identified in a Coastal Zone Management Plan which has been signed

off by the Minister for Environment. The Woollahra Coastal Zone Management Plan is scheduled

for completion in 2018.

A number of other Councils have also indicated that their storm emergency funding applications

have been unsuccessful.

Council staff will continue to explore grant funding opportunities.

Other major variations include:



Item No. R3

Deferral of the budgeted September 2016 local government election with funding being

returned to the Election Reserve

Additional works to be completed at Kiaora Place

Overall savings in Council’s Emergency Management Contribution

In accordance with the Office of Local Government Council Decision Making During Merger

Proposal Periods Guidelines, any proposed budget variations over the guideline limit will be

advertised and public comments invited.

The recommended variations to the 2016/17 Budget for the September quarter see the unrestricted

current ratio forecast remain unchanged at 2.25:1.

The unrestricted current ratio is used to assess the adequacy of working capital and the ability to

satisfy obligations in the short term for the unrestricted activities of Council. Financial health

checks indicate the ratio should not fall below 1.5:1 on an ongoing basis. Council’s forecast ratio of

2.25:1 remains sound.

Overall, based on projected levels of restricted cash and liquidity, and having regard to the

projected estimates of income and expenditure, Council’s Responsible Accounting Officer advises

that Council’s projected financial position at 30 June 2017 remains sound.



Item No. R3

Income & Expenses Budget Review Statement

The Income & Expenses Budget Review Statement presents a revised forecast operating result for

2016/17 of $2,565,836, an improvement arising from this review of $896,530 due largely to the

favourable income variations noted later in this report.

A reconciliation between the working funds movement and operating result is provided with the

Income & Expenses Statement above.

Details of recommended changes to operating income and expenses are provided below.

Woollahra Council

Budget review for the quarter ended 30 September 2016

Income & Expenses

ORIGINAL Approved Changes

Recommended

changes PROJECTED

16/17

Budget

(000's)

Revotes

(000s)

Sept

Review

(000's)

Dec

Review

(000's)

Mar

Review

(000's)

REVISED

Budget

(000's)

for Council

Resolution

(000's)

year end

result

16/17

(000's)

ACTUAL

YTD

(000's)

% of

REVISED

Budget

Income

Rates & Annual Charges 51,388 0 0 0 0 51,388 0 51,388 51,744 100.7%

Fees & Charges 10,660 0 0 0 0 10,660 109 10,769 3,355 31.5%

Interest 1,906 0 0 0 0 1,906 4 1,910 50 2.6%

Grants & Contributions 3,161 57 0 0 0 3,218 56 3,275 452 14.0%

Capital Grants & Contributions 3,240 703 0 0 0 3,943 391 4,334 713 18.1%

Other Revenue 22,648 0 0 0 0 22,648 243 22,891 5,447 24.1%

Other Income

Net Gain/(Loss) on Sale of Assets -1,614 46 0 0 0 -1,568 61 -1,507 -78 5.0%

Total Income from continuing

operations

91,389 806 0 0 0 92,194 865 93,060 61,683 66.9%

Expenses

Employee Costs 38,516 0 0 0 0 38,516 93 38,609 9,547 24.8%

Materials & Contracts 16,587 758 0 0 0 17,345 704 18,049 5,373 31.0%

Borrowing Costs 3,462 0 0 0 0 3,462 0 3,462 755 21.8%

Depreciation 12,658 0 0 0 0 12,658 0 12,658 3,319 26.2%

Other Costs 18,519 25 0 0 0 18,544 -828 17,716 6,215 33.5%

Total Expenses from continuing

operations

89,742 783 0 0 0 90,525 -31 90,494 25,208 27.8%

Net Operating Result from

continuing operations

1,646 23 0 0 0 1,669 897 2,566 36,475

Net Operating Result before capital

movements

20 -726 0 0 0 -705 444 -262 35,840

Working Funds Reconciliation:

Net Operating Result from continuing operations 897

LESS: Forecast increase in Capital Expenditure -1,258

Transfers to Reserve from Operating -52

Transfers to Reserve from Capital -25

Reduction in utilisation of Reserves -403

ADD:

Transfers from Reserves for Operating 155

Transfers from Reserves for Capital 698

Working Funds Movement 11

Notes:

ORIGINAL Budget +/- approved budget changes in previous quarters = REVISED Budget

REVISED Budget +/- recommended changes this quarter = PROJECTED year end result



Item No. R3

Details of Recommended Changes

The following table details, by Division and Manager, the variations recommended in the Income &

Expenses Budget Review Statement.

Item

Variation

Comment

(Favourable)/

Unfavourable

$’000

OPERATING BUDGET

COMMUNITY SERVICES:

Director Community Services (101):

- Printing & Stationery

(4)

Budget transfer to Library Lending

Services

Library Services (104):

- Salaries & Wages

- Overtime

- Penalty Rates

- Material Goods & Services

- Recurrent Contract Cleaning

- Equipment Purchases < $3k

- Furniture & Fittings < $3k

- Printing & Stationery

55

1

9

(20)

37

6

10

4

Additional budget required to cover;

casual staff to catalogue Local History

digitised material $20k, casual staff during

the weekend & busy periods $37k &

casual staff assisting with cultural

exhibitions $8k. Increases partially offset

by budget transfer from Material Goods &

Services ($20k) and budget transfer from

Cultural Development.

Additional cleaning required.

Additional budget required to replace

damaged items due to usage & additional

signage for the Library.

Additional budget required to replace

damaged items due to usage

Budget transfer from Director Community

Services as printing is now done at the

Library.

Family & Community Development (105):


- Section 356 Donations

- Preschool Fees

- Preschool Subsidy

(9)

3

56

(56)

Budget transfer to Placemaking for Taste

Orange & Fusion Fiveways.

Increase budget per Council Resolution

for additional support to REELise.

Fee reduction due to new funding formula

offset by expected increase in subsidy.

Cultural Development (105):

- Sponsorships Sculpture Prize

- Sculpture Prize Ticket Sales


3

3

(8)

Loss of gold sponsor.

Ticket sales less than budgeted.

Budget transfer to Library Admin

Collection Support.



Item No. R3

Item

Variation

Comment

(Favourable)/

Unfavourable

$’000

Small variations within Community Services: 1

Total variation for Community Services:

91

CORPORATE SERVICES:

Business Assurance & Risk Management (202):

- Self Funded Claims Council’s

Property

- Claims Recovery Council’s Property

- Legal Expenses Public Liability

- Self Funded Claims Tree Root

Private

- Workers Compensation Insurance

Premium Top Up

10

(10)

20

(20)

2

Additional budget required offset by

recoveries.

Budget increase required due to personal

injury litigated claims to be offset from

savings from Self-Funded Claims budget.

Additional budget required.

Governance (203):

- Election Expenses

- Transfer from Election Reserve

- Members Fees

(363)

363

(28)

Election deferred till September 2017.

Reserve funding returned to reserve.

Revised budget to reflect fewer

Councillors in office than budgeted

Finance (205):

- NSW Fire Brigades Contribution

- NSW State Emergency Services

Contribution

- Fringe Benefits Tax

(238)

5

50

Revised budget according to Annual

Assessment Notice received in July 2016.

Additional budget required for housing

benefits.

Organisational Development & Human Resources

(206)

- General Consultants

(3)

Software enhancements not proceeding.

Information Technology (207):

- Recruitment

- Salaries & Wages

- Sundry Income

- Internal Plant Charge

7

(7)

(5)

1

Budget savings in Salaries & Wages from

vacant position to cover recruitment cost

of new staff.

Temporary parking permits sold higher

than budgeted.

Net change to plant item.

Small variations within Corporate Services: 0

Total variation for Corporate Services: (216)



Item No. R3

Item

Variation

Comment

(Favourable)/

Unfavourable

$’000

TECHNICAL SERVICES: Engineering Services (302):

- Crane Permits

- Work Zones Charges

- Builders Road Restoration Charges

- General Contracts

- Internal Plant Charges

- Street Lighting Charges

(60)

(70)

(30)

10

2

(135)

Various income budgets revised based on

current trend.

Budget revised to reflect additional costs

relating to revised increase in income for

Builders Road Restoration Charges $20k

which is offset by budget not required for

South Street pump hire ($10k).

Net changes to various plant items.

Budget revised based on current trend.

Open Space and Trees (304):

- Recovered Costs

- Paid Maternity Leave

- Temporary Staff

- Salary & Wages

- General Contracts

- transfer from E&IRL

- Internal Plant Charges

- Recovered Costs

(5)

5

31

(14)

20

(10)

2

(1)

Paid Parental Leave expected from

Centrelink. Budget added to Paid

Maternity Leave.

Temporary staffing required to cover

vacant position & staff on leave. Partially

offset by savings from vacant position.

Additional budgets for WSUD

maintenance $10k, verge mowing $5k &

Cooper Park cleaning $5k. Budget and

funding transfer from Water Sensitive

Urban Design project.

Net changes to various plant items

Higher than budgeted.

Property and Projects (306):

- Recurrent Contracts

- Electricity Charges

- Legal Expenses

- Transfer from Reserve


- Road Leases

- Interest on Overdue Charges

67

(58)

25

(25)

(13)

(40)

(4)

Various changes with the major change

being additional budget required for

Double Bay Library $61k. Partially offset

by budget transfers from Electricity

Charges as Library outgoings are

recharged from Kiaora Place.

Secure Parking litigation to be finalised,

budget is only estimate based on current

actual, funded from Judgement/Legal

Costs Reserve.

Savings identified in various areas.

New license agreement for Guilfoyle

Avenue road reserve.

Interest on back rental charges.



Item No. R3

Item

Variation

Comment

(Favourable)/

Unfavourable

$’000

- Kiaora Place Budget Changes

- Transfer to Kiaora Reserve

- Kiosk Leases

- Parks & Reserves Leases

- Sportfield Building Leases

- Council Building Leases

- Tax Contribution Other

- General Contracts

(111)

111

7

24

5

(11)

7

15

Various changes & movements in the

Kiaora Place Budget resulted in a net

surplus of ($111k) with the major change

being the addition of turnover rent for a

tenant of ($140k) and credit given to two

tenants due to tenancy delays $25k.

Transfer to Kiaora Reserve $111k.

Various budgets revised to reflect changes

in income expected.

Parking space levy higher than budgeted.

Additional budget required for building

maintenance contracts

Civil Operations (307):

- DWM Budget Changes

- Temporary staff

- General Contracts Habour Facilities


0

38

79

14

Various internal plant charges required

additional budget of $59k, offset by a

reduced Transfer to DWM Reserve

($59k).

Budget required to cover staff on leave &

vacant positon to be recruited.

Additional budget to cover urgent repairs

to Yarranabbe Park wharf, replace shark

net at Parsley Bay & repairs to Watsons

Bay Baths due to storm damage.


Small variations within Technical Services: (4)

Total variation for Technical Services: (129)

PLANNING and DEVELOPMENT:

Strategic Planning (402):


- Transfer from Revotes & Rollovers

Reserve

- Salaries & Wages


100

(40)

(40)

2

Heritage consultant required to cover

vacant position $60k, partially offset by

savings in Salaries & Wages ($40k).

Additional consultant budget required for

Edgecliff Commercial Centre Study $40k,

offset by Transfer from Revotes &

Rollovers Reserve ($40k).

Net changes to plant items.

Development Control (404):

- Pre Lodgement Advice Fee

- Application Review Fees

- Development Application

Replacement

- Recovered Costs

(10)

(3)

(10)

(2)

Various budgets revised to reflect current

trend.



Item No. R3

Item

Variation

Comment

(Favourable)/

Unfavourable

$’000

Compliance (406):

- Hoarding Application

- Penalties

- Construction Certificates

- Building Certificates

- Swimming Pool Act Application

- Recovered Costs

- Paid Maternity Leave

- Temporary Staff

- Salaries & Wages


(25)

(50)

8

20

20

(9)

9

36

(14)

3

Various budgets revised to reflect current

trend.

Paid Parental Leave from Centrelink.

Budget added to Paid Maternity Leave.

Temporary staff to cover vacant position

and staff on leave. Partly offset by savings

in Salaries & Wages


Placemaking (407):



25

9

Additional budget required for Digital

City Guides contract.

Budget transfer from Community

Development for Taste Orange & Fusion

Fiveways.

Small variations within Planning and Development:

0

Total variation for Planning and Development: 29

GENERAL MANAGER:

General Manager (501):

- Legal Expenses

= Transfer from Reserve

- Other Expenses

90

(90)

15

Budgets added for appeal against the

proposed amalgamation. Legal expenses

to be funded from the Future

Judgement/Legal Costs Reserve.

Communications (503):

- Salaries & Wages


- Consultants


33

11

(3)

4

Staff returning to full time hours.

Promotional materials.

Savings identified

Net changes to plant item.

Small variations within General Manager: 0

Total variation for General Manager: 60

Total Variance in Operating Budget (164)



Item No. R3

Capital Budget Review Statement

The Capital Budget Review Statement below presents recommended changes to both capital

expenditure and capital funding. The total increase in capital expenditure arising from

recommended changes is $1,283k which is offset by a total funding increase of ($1,130k).

A Capital Expenditure Reconciliation table and details of changes are provided below.

Capital Expenditure Reconciliation

Budget Review

September 16

$’000

Net Increase in Capital Expenditure 1,283

Net Increase in Capital Funding (1,130)

Net increase in funding from general revenue required 153


Recommended

changes PROJECTED

15/16

Budget

(000's)

Revotes

(000's)

Sept

Review

(000's)

Dec

Review

(000's)

March

Review

(000's)

REVISED

Budget

(000's) Changes

year end

result

15/16

(000's)

ACTUAL

YTD

15/16

(000's)

% of

REVISED

Budget

Capital Funding

Rates and other untied funding -4,766 0 0 0 0 -4,766 -153 -4,919 -4,879 102.4

Capital Grants & Contributions -1,440 -703 0 0 0 -2,143 -391 -2,534 -348 16.3

Transfer from Property Reserve -300 -1,532 0 0 0 -1,832 -40 -1,872 -120 6.5

Transfer from Property Reserve-9A Cooper Park -3,590 -1,418 0 0 0 -5,008 -40 -5,048 -103 2.1

Transfer from Kiaora Reserve -214 0 0 0 0 -214 16 -198 -4 1.8

Transfer from Section 94A Levies -2,120 -1,081 0 0 0 -3,201 29 -3,172 -480 15.0

T/fr from Environmental & Infrastructure Levy -3,715 -1,420 0 0 0 -5,135 -20 -5,156 -877 17.1

T/fr from Stormwater management Charge -495 0 0 0 0 -495 0 -495 -70 14.2

T/fer from Preschool Reserve 0 0 0 0 0 0 -4 -4 0 100.0

Transfer from Computer Reserve -80 -16 0 0 0 -96 0 -96 0 0.0

Transfer from General Reserve -425 0 0 0 0 -425 0 -425 0 0.0

Transfer from Grant Reserve 0 -188 0 0 0 -188 0 -188 -120 64.0

Transfer from Section 94 0 -167 0 0 0 -167 -220 -387 -2 1.4

Transfer from Kiaora Place Reserve 0 -98 0 0 0 -98 -307 -406 0 0.0

Transfer from DWM Reserve -571 0 0 0 0 -571 -15 -587 0 0.0

T/fer from Revotes/Rollovers Reserve 0 -2,457 0 0 0 -2,457 -45 -2,502 -393 16.0

Computer Equipment Sales 0 -35 0 0 0 -35 0 -35 0 0.0

Recovered Costs 0 0 0 0 0 0 -30 -30 0 100.0

Passenger Vehicles Sales -768 0 0 0 0 -768 -61 -829 -227 29.6

Light Commercial Vehicle Sales -60 -11 0 0 0 -71 0 -71 -16 21.9

Heavy Vehicles Sales -155 0 0 0 0 -155 0 -155 0 0.0

Misc.Plant/Equip Sales -16 0 0 0 0 -16 0 -16 -3 19.6

Total Capital Funding -18,714 -9,126 0 0 0 -27,841 -1,283 -29,123 -7,643 27.5

Capital Expenditure

Business Centres Capital 55 0 0 0 0 55 0 55 0 0.0

Depot & Waste Services Capital 285 0 0 0 0 285 0 285 46 16.1

Traffic Infrastructure 670 602 0 0 0 1,272 0 1,272 340 26.7

Flood Plain Management 130 75 0 0 0 205 0 205 5 2.4

Open Space Project Management 150 0 0 0 0 150 0 150 6 4.3

Parks & Reserves 2,380 2,544 0 0 0 4,924 0 4,924 667 13.5

Playgrounds 160 152 0 0 0 312 54 366 234 75.0

Sportsfields 95 21 0 0 0 116 0 116 4 3.5

Streetscapes 1,050 818 0 0 0 1,868 -230 1,638 294 15.7

Infrastructure Renewal Program 6,583 2,326 0 0 0 8,909 982 9,891 3,033 34.0

Environmental Works Program 316 45 0 0 0 361 -10 351 49 13.5

Stormwater Levy Works 480 0 0 0 0 480 0 480 160 33.4

Computers & Office Equipment 112 837 0 0 0 949 10 959 584 61.6

Commercial/Leased Properties 205 0 0 0 0 205 38 243 153 74.8

Investment Properties 214 0 0 0 0 214 -6 208 0 0.0

Kiaora Lands Lease Incentives (Capital) 78 0 0 0 0 78 0 78 0 0.0

Parks / Ovals Buildings 95 272 0 0 0 367 0 367 1 0.3

Kiaora Place 0 612 0 0 0 612 377 989 0 0.0

Council Offices 175 202 0 0 0 377 -16 361 91 24.2

Community Facilities 198 82 0 0 0 280 -5 274 28 10.1

Library Buildings 840 0 0 0 0 840 0 840 54 6.4

Car Parks 1,790 444 0 0 0 2,234 -10 2,224 102 4.6

Library General 371 48 0 0 0 419 0 419 287 68.6

Library - Paddington 98 18 0 0 0 116 0 116 89 76.6

Plant Replacement Program 2,186 31 0 0 0 2,217 100 2,316 1,415 63.8

Total Capital Expenditure 18,714 9,126 0 0 0 27,841 1,283 29,123 7,643 27.5

Woollahra Council

Budget Review for the quarter ended 30 September 2016

Capital Budget



Item No. R3

Details of Recommended Changes

The following table details by Division and Manager the variations recommended in the Capital

Budget Review Statement.

Item

Variation

(Favourable)/

Unfavourable

$’000 Comment

CAPITAL BUDGET

CORPORATE SERVICES:

Information Technology

0 Various completed projects requiring additional

funding of $10k, offset by Transfer from Revote &

Rollovers Reserve ($10k).

TECHNICAL SERVICES:

Engineering Services &

Infrastructure Renewal Program

130

Project variations and transfers include the

following:

▪ Active Transport Funding grants approved

($170k), budgets added to

- Paddington Street $20k

- Minor Works $25k

- Wallaroy Rd $25k

- Edgecliff Rd $25k

- NSH Rd Victoria Rd to Norwich Rd

Stage 4 $75k

▪ Projects with savings identified or deferred to

offset emergency works & projects overspent:

- Parking Meters Upgrade, savings

identified ($17k)

- NSH Rd Streetscape Upgrade Stage 3

Project deferred ($230k)

- Bell St, project deferred ($210k)

- Underwood St, project split into 2

Stages ($100k)

- Rosemont Ave, savings identified ($40k)

▪ Emergency works projects to be partially funded

from projects deferred & savings identified:

- Northland Road embankment

Stabilisation $400k

- Dumaresq Reserve seawall

Reconstruction $299k

- Watsons Bay Seawall reconstruction

$246k

▪ Projects added or in progress requiring

additional budgets:

- McGarvie St footpath reconstruction

added $100k

- Rosemont Ave Stage 2 $38k

- Lyne Park Seawall stage 3 $29k

▪ Projects with practical completion requiring

additional budgets:

- Village High Rd Stage 2 & 3 $33k

- Ocean St at Jersey Rd $16k

- Clarendon St $16k

▪ Emergency works grant funding from RMS,

Northland Road ($128k) and Watsons Bay

($29k)



Item No. R3

Item

Variation

(Favourable)/

Unfavourable

$’000 Comment

Engineering Services &

Infrastructure Renewal Program cont’d

▪ S94 funding provided to Parking Meters upgrade

per legal advice to free up Revote & Rollovers

Reserve funding to partially fund emergency

works seawall reconstruction ($220k)

▪ Additional transfer from Revote & Rollovers

Reserve ($21k)

▪ Transfer from Open Space & Community

Facility Reserve to fund Northland Road ($52k),

noting the works form part of Cooper Park.

▪ Additional transfer from E&IRL Reserve ($30k)

Also, a number of Traffic related capital works

projects have been deferred due to further traffic

investigations. Budgets from these projects will be

reallocated to other high priority projects as

identified in the Woollahra Traffic Strategy or by the

Traffic Committee. For example, the Darling Point

Road refuge island project has been deferred in

favour of a higher priority refuge island in Newcastle

Street to be completed as part of Rose Bay

Pedestrian Trail.

Open Space and Trees 0 Project variations and transfers include the

following:

▪ Contribution received for Playgrounds Replace

Existing ($54k), increase budget by $54k

▪ Budget transfer between Rose Bay Pedestrian

Trail Stage 2 & Stage 3 $40k, transfer funding

accordingly ($40k).

A number of other minor reallocations have been

made between projects.

Property and Projects

0

Project variations and transfers include the

following:

▪ Budget consolidation between Rose Bay

Carpark Design & Redevelopment $444k and

funding ($444k)

▪ Kiaora Place new rapid roller door required for

loading dock $44k, contribution received

($10k), funding from Kiaora Reserve ($34k)

▪ Additional budget required for Redleaf Kiosk

roof upgrade $38k, funding from Revote &

Rollovers Reserve ($14k) and other minor

savings ($24k)

▪ Kiaora Place fire mimic & Christmas decoration

projects not proceeding as advised by Brookfield

($50k), return funding from Kiaora Reserve

$50k

▪ Kiaora Place project variations as follows;

- Kiaora Lands Library Post completion

Additional works $297k, funding from

Kiaora Reserve ($297k)

- Kiaora Library new signage per

Council Resolution $42k, transfer from

Property Reserve ($42k)

- Kiaora Lands Commercial Lobby door

$40k, funding from tenant’s

Contribution ($30k) and transfer from

Kiaora Reserve ($10k)



Item No. R3

Item

Variation

(Favourable)/

Unfavourable

$’000 Comment

Property and Projects cont’d

- Various Kiaora Place budget

movements with zero net change.

A number of other minor reallocations have been

made between projects.

Civil Operations

23 A net deficit resulted from plant/vehicles purchased

and plant/vehicles sold with the major change being

an addition to fleet $28k

Environmental Works Program

0 Budget transfer from Water Sensitive Urban Design

($10k) to WSUD Maintenance in operating budget,

transfer funding accordingly $10k.

Total Variance in Capital Funds 153

TOTAL CHANGE IN WORKING

FUNDS (11)

In addition to the Income and Expenses and Capital Budget Review Statements above, Council’s

Balance Sheet and Reserve levels summarise the results of the budget review and appear as

Annexures 1 and 2 respectively. Annexure 3 provides a report of the proposed variations to

forecasts by Manager and Cost Centre.



Item No. R3

Cash and Investments Budget Review Statement

The Cash and Investments Budget Review Statement combines Council’s restricted cash reserves

with total cash and investments from the Balance Sheet to show any impact on unrestricted

available cash.

The Cash and Investments Budget Review Statement shown below carries the net total of

recommended changes to the Budget through to the Unrestricted and Available Cash Balances. It

also shows the various movements in restricted cash recommended in the Budget Review.

As reported to the Corporate & Works Committee on 24 October 2016, Council’s total investment

portfolio was invested in accordance with Council’s Investment Policy and the bank reconciliation

to 30 September 2016 had been completed.

Woollahra Council

Budget review for the quarter ended 30 September 2016

Cash & Investments


Recommended

changes PROJECTED

16/17

Budget

(000's)

Revotes

(000s)

Sept

Review

(000's)

Dec

Review

(000's)

March

Review

(000's)

REVISED

Budget

(000's)

for Council

Resolution

(000's)

year end

result

15/16

(000's)

ACTUAL

YTD

(000's)

Unrestricted 2,118 0 0 0 0 2,118 11 2,130 9,472

Externally Restricted

Section 94 Contributions 2,044 -167 0 0 0 1,877 -220 1,657 1,987

Section 94A Contributions 1,910 -1,085 0 0 0 826 29 855 2,240

Unexpended Grants 231 -194 0 0 0 37 0 37 111

Environmental & Infrastructure Levy 1,335 -1,456 0 0 0 -121 -30 -151 2,182

Stormwater Levy -10 0 0 0 0 -10 0 -10 131

Domestic Waste 2,430 0 0 0 0 2,430 -74 2,355 1,703

Total Externally Restricted 7,941 -2,902 0 0 0 5,039 -295 4,744 8,355

Internally Restricted

Employee Leave Entitlements 2,585 0 0 0 0 2,585 0 2,585 2,585

Plant Replacement 270 0 0 0 0 270 25 295 270

Insurance 834 0 0 0 0 834 0 834 927

Computer 186 -16 0 0 0 170 0 170 266

Election 0 0 0 0 0 0 363 363 263

Deposits 14,277 0 0 0 0 14,277 0 14,277 14,277

Kindergarten 230 0 0 0 0 230 -4 227 226

Property 23,032 -1,736 0 0 0 21,296 -40 21,256 20,912

Open Space & Community Facilities 5,398 -1,418 0 0 0 3,981 -40 3,941 8,886

Kiaora Place Reserve 2,023 -98 0 0 0 1,925 -180 1,744 579

Loan Funds 4 0 0 0 0 4 0 4 4

Revotes & Rollovers 2,963 -2,878 0 0 0 85 -85 0 2,554

Oxford Street 250 0 0 0 0 250 0 250 250

Open Space Projects 275 0 0 0 0 275 0 275 700

Property Development 174 -55 0 0 0 119 0 119 174

Future Judgement Costs 1,800 0 0 0 0 1,800 -115 1,685 1,800

General Reserve 6,973 0 0 0 0 6,973 0 6,973 28

Total Internally Restricted 61,276 -6,202 0 0 0 55,074 -78 54,996 54,701

Total Restricted 69,216 -9,104 0 0 0 60,113 -373 59,740 63,055

Total cash and investments 71,334 -9,104 0 0 0 62,231 -361 61,869 72,527

Available Cash 2,118 0 0 0 0 2,118 11 2,130 9,472

Notes:

The available cash position excludes restricted funds. External restrictions are funds that must be spent for a specific purpose and cannot be used by

Council for general operations. Internal restrictions are funds that Council has determined will be used for a specific future purpose.

ORIGINAL Budget + /- approved budget changes in previous quarters = REVISED Budget

REVISED Budget + / - recommended changes this quarter = PROJECTED year end result



Item No. R3

Budget Review Contracts and Other Expenses Statement

The Budget Review Contracts and Other Expenses Statement require Council to disclose

‘Contracts’ and ‘Consultancy and Legal Expenses’ as part of the Quarterly Budget Review.

Councillors are currently made aware of tenders of $120,000 or more. This statement makes

Councillors aware of other contracts that meet the reporting guidelines.

As per requirements set out by the Office of Local Government, the Contracts disclosure includes:

Contracts that were entered into during the quarter under review but have not been fully

performed or completed; and

Have a value equal to or more than $50,000, (or, 1% of Council’s estimated income from

continuing operations).

Contracts for employment and contracts entered into from Council’s “preferred contracts list” are

not included.

The consultancy and legal expenses disclosure shows year to date budget and year to date

expenditure for these items.

Annexure 4 provides the Budget Review Contracts and Other Expenses Statement as required by

the Guidelines.

Conclusion:

The September 2016 quarterly review forecasts an increase in Council’s working funds position for

2016/17 of $11,823 which comprises the original budget surplus including rollovers of $366 and a

surplus at this review of $11,457.

Following the review of the estimates of expenditure and income made in the original budget, the

Income and Expenses Statement shows an increase in our operating result of $896,530.

The Capital Budget Review Statement shows an increase in capital expenditure of $1,282,727 and a

corresponding increase in funding of $1,129,475. Changes giving rise to these variations have been

detailed in the report.

The Balance Sheet (Annexure 1) shows liquidity at 2.25:1 with working funds position at

$2,831,605.

Having regard to the original estimates of income and expenditure, and the proposed variations, the

projected restricted cash levels and liquidity position indicate that Council’s overall financial

position will remain sound at 30 June 2017.

Annexures

1. Forecast Balance Sheet for the year ending 30 June 2017 ⇩

2. Forecast 30 June 2017 Reserve Levels as at 30 September 2016 ⇩

3. Revised Forecasts of Expenditure and Income by Manager and Cost Centre ⇩



Item No. R3

4. Budget Review Contracts and Other Expenses Statement ⇩



Annexure 1 Forecast Balance Sheet for the year ending 30 June 2017



Annexure 2 Forecast 30 June 2017 Reserve Levels as at 30 September 2016



Annexure 3 Revised Forecasts of Expenditure and Income by Manager and Cost

Centre



Annexure 4 Budget Review Contracts and Other Expenses Statement



Political Donations – matters to be considered by Councillors at Meetings

Action Declare a significant non-pecuniary conflict of

interest, absent yourself from the meeting and take no further part in the debate or vote on the matter

(Code of Conduct Cl 4.16(b))

Action

Consider appropriate action required. This could include limiting involvement by:

1. participating in discussion but not in decision making (vote), 2. participating in decision making (vote) but not in the discussion

3. not participating in the discussion or decision making (vote)

4. removing the source of the conflict

Do you believe the political contribution creates a significant non-pecuniary conflict of interest

for you?

(Code of Conduct Cl 4.23)

Action Declare a significant non-

pecuniary conflict of interest, absent yourself from the meeting

and take no further part in the debate or vote on the matter

(Code of Conduct Cl 4.16(b))

Staff to record decision process (motions/amendments) and Division of votes for the determinative resolution or recommendation in the

meeting minutes.

Matter before Committee or

Council Meeting

Did the applicant, owner (if not the applicant) or someone close

to the applicant make a donation in excess of $1,000 that directly benefited your

election campaign? (Code of Conduct Cl 4.21)

Is the matter before the meeting a Planning Matter?

Action

Participate in debate and vote on the matter

Did the applicant or someone close to the applicant make a donation less than $1,000 that directly benefited your election

campaign?

(Code of Conduct Cl 4.2)

Staff to record decision process (motions/amendments) and Division of votes for the determinative resolution or recommendation in the

meeting minutes.

No

No No

No

Yes

Yes Yes

Yes

Yes

Agenda: Date€¦ · 2016/17 QUARTERLY PROGRESS REPORT SEPTEMBER 2016 AGAINST GOAL 10 - WORKING...

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