gold coast water and waste committee · 2019. 6. 23. · gold coast water and waste committee...

739 Adopted Report

of the

Gold Coast Water and Waste Committee Meeting

held on

Wednesday 19 July 2017 at

2 pm

City of Gold Coast Council Chambers 135 Bundall Road Surfers Paradise

739th Council Meeting 25 July 2017 2 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report

Index 739 Adopted Report

Gold Coast Water and Waste Committee Meeting Wednesday 19 July 2017

Item Direct. File Page Subject

1 GCWW CM787/788/06/01(P1) 4 Gold Coast Water and Waste Committee Action List and Forward Planning Schedule

2 GCWW WSS1125/1227/02(P1) 8 Gold Coast Water and Waste Annual Register of Council Directions

3 GCWW FN334/252/17(P6) 10 Water and Sewerage Services Financial Performance as at 31 May 2017

4 GCWW FN334/252/17(P6) 35 Waste Services Financial Performance as at 31 May 2017

5 GCWW CM787/790/03/06/03(P1) 54 Lease of a portion of the Merrimac Waste and Recycling Centre Site to Currumbin Wildlife Sanctuary

6 GCWW WF16/22/-(P1) 62 Logan-Albert Catchment Action Plan 2017-2020

Closed Session

7 GCWW WSS1125/1229/01(P1) 102 Scientific Services Delivery Model – Implementation Plan

General Business

KEY: OCEO - Office of the Chief Executive Officer GCWW - Gold Coast Water & Waste CI - City Infrastructure OCOO - Office of the Chief Operating Officer CS - Community Services OS - Organisational Services EDMP - Economic Development & Major Projects PE - Planning & Environment

739th Council Meeting 25 July 2017 3 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ADOPTION BY COUNCIL 25 JULY 2017 RESOLUTION G17.0725.018 moved Cr Taylor seconded Cr Boulton That the Report of the Gold Coast Water and Waste Committee’s Wednesday 19 July 2017, numbered WW17.0719.001 to WW17.0719.007, be adopted.

CARRIED

ATTENDANCE Cr P Taylor (Chairperson) Cr K Boulton Cr R La Castra Cr PJ Young Cr G Tozer Cr PC Young Cr G O’Neill Cr Owen-Jones (Visitor) Mr P Heaton Director Gold Coast Water and Waste PRESENTATIONS

739th Council Meeting 25 July 2017 4 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 1 GOLD COAST WATER AND WASTE GOLD COAST WATER AND WASTE COMMITTEE ACTION LIST AND FORWARD PLANNING SCHEDULE CM787/788/06/01(P1)

Proposed Date

Subject Action Officers

Action

August 2017 Customer Satisfaction Survey Carley Freeman

GCWW conducts a customer satisfaction survey every 2-3 years.

August 2017 Presentation: Recycled Water Master Plan

Kathy Baker

Sept/October Site Tour Wendy Nelson Potential for site tours on Wednesday 27 September and/or Wednesday 11 October 2017.

November 2017

Recycled Water Master Plan and Pricing Principles Recommendation: WW17.0315.006

Kevin Page / Anthony Ottaway

Council notes that a detailed master plan and program for the potential recycled water system upgrades will be brought back to Council in late 2017.

December 2017

Improved Control and Access to Waste and Recycling Facilities Resolution: G17.0621.014

Matt Fraser 6 That Council endorses assessment of potential electronic access control at Council’s waste and recycling facilities, with a report to be presented by the end of 2017 on a proposed approach.

7 That Council endorses assessment for potential improved control of inappropriate behaviours and issue of infringement notices at waste and recycling centres, with a report to be presented by the end of 2017 on a proposed approach.

June 2018 Improved Control and Access to Waste and Recycling Facilities Resolution: G17.0621.014

Matt Fraser 2 That Council endorses assessment of the potential for designation of waste and recycling centres into domestic waste only, and full waste facilities, with a report to be presented on the proposal by the end of 2017-18 financial year.


Proposed Date


Action

To be confirmed

Metering and Leakage Recommendation: WW16.0720.004

Scott Emmonds

Council notes that further consideration is being given to residential meter location and other issues to support ongoing development of Council’s Concealed Leakage Remission Policy, which will be brought to Council at a later date.

To be confirmed

Extension of the Green Waste Collection Area Recommendation: WW16.0817.005

Mairead Lenihan

2. That the residential green waste collection service is continued within Urban Areas with consideration for expansion to City Wide residential green waste collection deferred for consideration subject to the following:

a) The number of rural residential properties in the designated waste collection area registering interest in the green waste collection service reaches 1,385 properties or at least 10 per cent of rural residential properties; and

b) The number of green waste collection services and the number of rural residential properties in the designated waste collection area that register interest in a service, reaches a combined total of 25,001.

3. That the Director Gold Coast Water provides communication materials for the use of Councillors for the purpose of promoting the service and the preparation of advertising within future rates and water notices.

739th Council Meeting 25 July 2017 6 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 1 (Continued) GOLD COAST WATER AND WASTE COMMITTEE ACTION LIST AND FORWARD PLANNING SCHEDULE CM787/788/06/01(P1)

Proposed Date


Action

To be confirmed

Overview of Measures to Mitigate the Impact of Plastic Waste on the Marine Environment Recommendation: WW16.1109.005

Joshua Evans 1. That Council undertake a marine debris data analysis of the materials collected through the City’s canal cleaning program. The results of this analysis will determine the following:

a) Whether a targeted public awareness through education is likely to be effective;

b) Identification of the number of additional Stormwater Quality Improvement Devices required to be retrofitted into the existing stormwater network.

c) Improve the collaboration of volunteer groups to ensure their efforts are effective in reducing marine debris.

3. That consideration at a more appropriate time is given to the provision of a green waste collection service to all residents to reduce the impact of illegal dumping of green waste (which comprises of over 70% of collected materials) into the City’s Canals. 4. That a Litter and Illegal Dumping Management Plan is developed by Environmental Health, Compliance and Lifeguard Services (in accordance with the Solid Waste Strategy 2024). 5. That Council investigate feasibility of a further roll-out of drinking water refill stations to reduce the need for residents and visitors to purchase bottled water and the resulting litter.


Proposed Date


Action

December 2018

Alternate Billing Options for Water and Sewerage Utility Charges

Recommendation: WW17.0426.006

Anthony Ottaway

2 That in view of the benefits to customers, Council endorses a future transition to rolling billing for water and sewerage utility charges with both fixed and variable charges billed in arrears.

3 The proposed future transition to rolling billing to be scheduled to align with the establishment of a new utility billing system.

4 That a report to be provided back to Council by December 2018 providing details of on the proposed transition plan.

RECOMMENDATION It is recommended that Council resolve as follows: That the Action List and Forward Planning Schedule for Gold Coast Water and Waste Committee be noted.

Authorised by: Paul Heaton iSPOT#37409759 Director Gold Coast Water and Waste COMMITTEE RECOMMENDATION WW17.0719.001 moved Cr PJ Young seconded Cr Tozer That the Action List and Forward Planning Schedule for Gold Coast Water and Waste Committee be noted.

CARRIED

739th Council Meeting 25 July 2017 8 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 2 GOLD COAST WATER AND WASTE GOLD COAST WATER AND WASTE ANNUAL REGISTER OF COUNCIL DIRECTIONS WSS1125/1227/02(P1)

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

- has a (or potential to have a) material/commercial impact on the business unit. Council Meeting

Council Resolution

Description 2016-17 Progressive

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

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

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

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

4. Not-for-profit community groups: rebates for the water and wastewater networks will be restored, following the return of responsibility to the City (ongoing). Recommendation: WW16.0601.003 Resolution: G16.0607.013

$181,612

739th Council Meeting 25 July 2017 9 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 2 (Continued) GOLD COAST WATER AND WASTE ANNUAL REGISTER OF COUNCIL DIRECTIONS WSS1125/1227/02(P1) RECOMMENDATION It is recommended that Council resolve as follows: That the Gold Coast Water and Waste Annual Register of Council Directions be noted. Authorised by: Paul Heaton iSPOT#43956542 Director Gold Coast Water and Waste COMMITTEE RECOMMENDATION WW17.0719.002 moved Cr PJ Young seconded Cr Tozer That the Gold Coast Water and Waste Annual Register of Council Directions be noted.

CARRIED

739th Council Meeting 25 July 2017 10 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 GOLD COAST WATER AND WASTE WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) Attachment 1: Detailed Income Statement Attachment 2: Concealed Leakage Remissions > $10,000 - CONFIDENTIAL 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT The purpose of this report is to provide the Gold Coast Water and Waste Committee with an update of Water and Sewerage Services financial performance as at 31 May 2017. Comparisons are against Council’s March 2017 Review Adopted Budget. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION 5.1 High Level Financial Summary

Table 1 – Water & Sewerage Services - Year to Date Financial Summary

Table 1 above shows the financial position for Water and Sewerage Services as at 31 May is 6.0% or $16.34 million above forecast. Main contributing factors to this favourable variance are:

· Operating revenue – above forecast $12.79 million · Capital revenue – above forecast $7.99 million

This is partially offset by flow-dependant expenditure being above forecast by $5.16 million.

Actual Revised Budget Var Var

Initial Budget

Revised Budget

Month ended 31 May 2017 ($M) ($M) ($M) % ($M) ($M)Operating Revenue 465.13 452.34 12.79 2.8% 488.59 491.75Flow -Dependant Expenditure 173.72 168.57 (5.16) (3.1%) 178.37 182.69Operating Revenue net of Flow Dependant Expenditure 291.40 283.77 7.63 2.7% 310.23 309.06Gross Margin 0.66 0.66 0.67 0.66

Total Controllable Operating Expenditure 94.73 96.31 1.58 1.6% 101.96 105.55

Loss on Sale of Assets 4.61 3.75 (0.86) (23.0%) 5.00 5.00

Net Profit before Capital Revenue 192.07 183.71 8.35 4.5% 203.26 198.51

Total Capital Revenue 95.35 87.36 7.99 9.1% 55.50 95.29

EBITDA 287.41 271.07 16.34 6.0% 258.76 293.80

Year to Date Full YearWater & Sewerage Services Financial Summary

739th Council Meeting 25 July 2017 11 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) Major variances will be discussed in the following paragraphs with a detailed Income Statement contained in Attachment 1 to the report. 5.2 Operating Revenue ($12.79 million Favourable) 5.2.1 Rates Revenue Financial Summary ($12.71 million Favourable)

Table 2 – Water and Sewer Rates Revenue Forecast

Rates revenue is $12.71 million higher than the revised budget, with services charges being above forecast by $2.49 million (1.2%) and volumetric charges being greater than forecast by $10.23 million (4.6%). Service Charges

· Year-to-date water service charges are $1.69 million ahead of forecast due to higher number of connections. Total water service connections at 31 May 2017 are 252,508.

· Year-to-date sewerage service charges are $0.80 million ahead of forecast due to higher number of connections. Total sewerage service connections at 31 May 2017 are 240,511.

Water & Sewerage Rates RevenueActual Revised

Budget Var VarInitial

BudgetRevised Budget

Month ended 31 May 2017 ($M) ($M) ($M) % ($M) ($M)Service Charges

Water 60.28 58.58 1.69 2.9% 63.88 63.88Sew erage 157.73 156.94 0.80 0.5% 171.15 171.15

Total Service Charges 218.01 215.52 2.49 1.2% 235.03 235.03

Volumetric ChargesWater - gross 199.31 192.60 6.71 3.5% 206.21 208.69Sew erage - gross 36.01 32.29 3.72 11.5% 35.55 34.99Recycled Class A 0.78 0.68 0.10 14.7% 0.74 0.74Less: Concealed Leakage (2.15) (1.85) (0.30) (16.4%) (2.00) (2.00)

Total Volumetric Charges 233.96 223.73 10.23 4.6% 240.50 242.41

Total Rates Revenue 451.97 439.25 12.71 2.9% 475.53 477.44

Full YearYear to Date

739th Council Meeting 25 July 2017 12 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) Volumetric Charges Volumetric charges are reflective of higher than forecast:

· Water volumetric charges of $6.71 million. Billable demand for the year to date is 1,750ML greater than the revised budget, after accounting for non-revenue water. Billable demand in May was 101ML higher than the revised demand forecast.

· Sewage volumetric charges of $3.72 million. Sewage volumetric revenue is ahead of forecast due to higher billable water demand.

· Recycled Class A+ volumetric charges of $0.10 million. · Concealed leakage remissions of $0.30 million. Concealed leakage remissions are

discussed further in Section 5.9.2. Customer volumetric demand is impacted by weather conditions, in particular temperature and rainfall.

· For the July 2016 to May 2017 period, the average maximum temperature has been

slightly higher than the long term average by 0.5 - 2.0 degrees Celsius. For the month of May 2017 temperature and rainfall have been equal to or marginally above long term averages.

· Actual rainfall for the July 2016 to May 2017 period of 882mm, recorded at the Gold Coast Seaway, was 65% of the long term average of 1,351mm. For the month of May 2017, 77.8mm of rainfall was recorded at the Gold Coast Seaway, 60% of the long term average of 128.9mm.

5.2.2 Other Operating Revenue ($0.07 million Favourable) Major variances include:

· Fees and charges are $0.17 million above forecast due to higher than forecast internal and external demand for laboratory services.

· Interest on outstanding rates is $0.10 million below forecast due to lower value of outstanding water rates.

739th Council Meeting 25 July 2017 13 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 5.3 Flow Dependant Expenditure ($5.16 million Unfavourable) Bulk Water Purchases ($5.25 million Unfavourable)

The actual bulk water demands for the year to May 2017 is 1,899ML higher than forecast. As outlined in section 5.2.1, for the period of July 2016 to May 2017, the City has experienced hotter and drier weather conditions which impacts on customer demand and flows through to increased bulk water purchases.

The below graphical representation depicts year-to-date water supplied, the 2016-17 (initial) demand forecast as included in the initial Adopted Budget, the revised demand forecast, as amended in the March 2017 budget review, and for comparative purposes, last year’s month-by-month water supplied. Rainfall recorded each month for both years is also incorporated. As outlined in Graph 2 below, actual demand was significantly greater than forecast demand for the months of February and March 2017. Actual results for May 2017 were in line with revised forecast.

Graph 2 Analysis of Water Supplied versus Demand Forecast

Electricity ($0.18 million Unfavourable) Electricity expenditure is $0.18 million or 2.0% above forecast due to increased consumption at water pump stations, resulting from higher water volumes consumed across the City.

739th Council Meeting 25 July 2017 14 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) Biosolids Disposal ($0.32 million Favourable) Biosolids disposal costs are $0.39 million or 9.1% below forecast. With the hotter and drier weather conditions, sludge drying beds at the Coombabah treatment plant have been fully utilised, drying biosolids to over 20% instead of the average 12%. This results in a lower mass of biosolids requiring removal from site. 5.4 Controllable Expenditure ($1.58 million Favourable) At a whole of business unit level, Controllable Expenses are $1.58 million (1.6%) below year to date forecast. Variances at individual line item level will be further explained below. Employee Expenses ($1.43 million Favourable) Employee expenses are $1.43 million or 3.3% below forecast. Favourable variance is due to a combination of work order activity being appropriately allocated to capital projects and vacancies across the business. Services ($0.52 million Favourable) Services are $0.52 million or 2.8% below forecast, with the major influencing factors being:

· telecommunication costs being invoiced by the provider up to February as a result of reporting issues. Costs were not accrued due to uncertainty around value.

· decommissioning costs as part of capital work projects not yet incurred. Materials ($0.54 million Favourable) Materials are $0.54 million or 9.3% below forecast due to the work order activity being appropriately allocated to capital projects and lower than anticipated expenditure on reactive water and sewer reticulation maintenance. Council Fleet and Plant ($0.21 million Unfavourable) Council fleet and plant is $0.21 million or 5.3% above forecast due to actual costs for short-term plant hire being costed here, when provided via the City’s Fleet and Plant Services. The budget allocation for short-term plant hire is included in the Services line item. Other Expenditure ($0.73 million Unfavourable) Other expenditure is $0.73 million or 53.3% above forecast. An extensive review of capital work in progress was undertaken prior to the water and sewerage infrastructure assets revaluation currently being undertaken. Costs that do not meet capitalisation requirements have been recognised as an expense. As a result of that review, $0.73 million of prior year expenditure has been expensed.

739th Council Meeting 25 July 2017 15 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 5.5 Loss on Sale of Assets ($0.86 million Unfavourable) A significant level of asset processing was completed during the third quarter, prior to the revaluation of water and sewerage infrastructure assets. Once the revaluation is finalised, it is anticipation further recognition of loss on asset disposals will be recognised prior to year end. 5.6 Capital Revenue ($7.99 million Favourable) · Developer (cash) contributions are $0.78 million or 1.6% ahead of forecast. · Contributed assets are $7.07 million or 19.3% ahead of forecast. This favourable variance reflects the high level of development activity occurring across the City. The processing of contributed assets for April and May has not yet occurred with resources focussed on finalising the revaluation of water and sewerage infrastructure assets. Processing will reoccur after the revaluation has been finalised. It is anticipated that capital revenue will have a full year favourable variance in the order of $10 million to $20 million. 5.7 Community Returns Income Tax ($2.59 million Favourable) Water and Sewerage Services is a commercialised business unit subject to the Local Government Taxation Equivalents Regime (LGTER). As part of this regime, a PAYG Instalment Activity Statement must be prepared and submitted on a monthly basis, with payment a PAYG instalment. Current instalment rate as issued by our tax assessors is 7.91%. The instalment rate is applied to total revenue generated to derive the amount of PAYG tax payable each month. Taxation expense recorded to date represents the total of PAYG instalments calculated for the first eleven months of the financial year, based upon revenue recognised for the period. At year end, a final taxation return will be prepared, based upon taxable income and utilising the company taxation rate of 30% to calculate total taxation payable for the year. Relevant adjustments will be made to record this annual tax liability to Council.

739th Council Meeting 25 July 2017 16 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 5.8 Capital Program 5.8.1 Capital Expenditure

The Water and Sewerage Services initial capital program consisted of 55 projects totalling $71.95 million. Adjustments following quarterly budget reviews have increased the program to 100 projects totalling $72.15 million.

Table 3 – Capital Expenditure ($‘000’s)

Year to date capital expenditure of $55.89 million represents a variance of 11% below the year to date forecast of $62.91 million. Product Variances Sewerage The sewerage program is $5.2 million (10.6%) below forecast. The following projects are the main contributors to the variance:

· Commonwealth Games Western Force Main Duplication to Coombabah Sewage

Treatment Plant (STP) - $0.90 million below forecast. This project is tracking below forecast due to site delays following the severe weather event in late March which caused significant site flooding resulting in suspension of works. Limited construction works recommenced late in April 2017, however further site flooding affected the site until mid-May. The project will carry over into the early part of 2017-18 financial year.

· Sewer Pump Station (SPS) Emergency Storage Augmentations - $0.84 million

below forecast. This project is tracking below forecast due issues related to the severe weather event in March, construction delays at W52 SPS and late delivery of pipe for A4 SPS. In addition, some pipes were found to have defects to the internal liner and required repairs.

· Gravity Main Asset Renewals Program - $0.71 million below forecast. This project is

tracking below forecast due to delays with the Department of Transport and Main Roads (DTMR) contractor impacting on the various rehabilitation works. In addition, there was a reduction in scope to be delivered, following completion of the condition assessments.

ProductActual

Expenditure ($M)

Revised Forecast ($M)

Variance($M)

Variance%

Initial Budget ($M)

Q1 Revised Budget ($000's)



Sewerage 43.88 49.08 5.20 10.6% 60.83 58.84 58.52 55.61

Water 9.62 11.09 1.47 13.3% 7.44 11.49 12.01 13.16

Noncore Water 2.32 2.65 0.33 12.6% 3.62 3.78 3.06 2.93

Recycled Water 0.00 0.00 0.00 - 0.00 0.64 0.64 0.00

Corporate 0.07 0.09 0.02 - 0.07 0.09 0.34 0.45

Total Capital 55.89 62.91 7.02 11.2% 71.96 74.84 74.57 72.15

Water and Sewerage Services Capital Expenditureas at 31 May 2017

Year to Date Full Year

739th Council Meeting 25 July 2017 17 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) · Merrimac West Sewer Augmentations - $0.69 million below forecast. This project is

tracking below forecast due to delays in commissioning the remaining pump stations subsequent to delays in the completion of the pipelines. These pump stations have now been commissioned. The project is still expected to be completed by 30 June 2017.

· Sewage Treatment Plant Mechanical Electrical Renewals 2016-17 - $0.33 million

below forecast. This project is tracking below forecast due to the SCADA upgrade works at Coombabah STP being delayed following a decision to change the delivery mechanism to take advantage of project efficiencies. Works are expected to be completed within the approved budget by 30 June 2017.

· UAS Gravity Sewer Reline Rectification - $ 0.33 million below forecast. This project

is tracking below forecast as some relining works originally scheduled for May were deferred into June 2017 due to the recent wet weather events. Works are expected to be completed in the first week of July 2017.

· Sewer Rising Main Renewals 2016-17 - $ $0.31 million below forecast. This project is

tracking below forecast due to delays in delivery of customised fabricated fittings and the nomination of operationally suitable timing for shutdown of the sewer main for construction and commissioning of new fittings. Works are expected to be completed in October 2017.

Water The Water program is $1.47 million (13.3%) below forecast. The following projects are the main contributors to the variance: · Reservoir Priority Roof - $0.80 million below forecast. This project is tracking below

forecast due to delays following a change of survey methodology. Design delays have further delayed construction. This project will continue into 2017-18 as per the original project schedule.

· Hydrant Replacements 2016-17 - $0.48 million below forecast. This project is tracking below forecast due to a change in delivery mechanism and award to a suitable contractor. Renewal works have recommenced however the full budget allocation is not expected to be expended by 30 June 2017. It is estimated that $0.50 million of these works will carry over into 2017-18.

Non-Core Water The non-core water program is $0.33 million (12.6%) below forecast due to transitional arrangements associated with the commencement of the Holistic Metering Contract (HMC) and delays in replacement of several large meters being delivered through the Minor Civil Works Contract.

739th Council Meeting 25 July 2017 18 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6)

5.8.2 Status Update – Major Capital Projects Merrimac West Sewer Augmentation

Project scope and budget By adopting a traditional approach of upgrading assets on a “just in time” basis, this project aims to upgrade the sewerage collection network in the Merrimac West catchment to cater for both growth and replacement of ageing infrastructure. The detailed scoping study completed by consultants included catchment master planning and concept designs for the required infrastructure upgrades with a forecast project value of $34.8 million over four years (finishing in 2016-17). Due to contract prices being lower than estimates, the forecast project value has reduced to $26.5 million. Initial budget approved for the 2016-17 financial year was $13.9 million however due to more works being completed in 2015-16 than budgeted for, the budget was reduced by $2.4 million at the September budget review. An additional $0.10 million was included in the March budget review to cover costs anticipated to completion. The project completion remains scheduled in 2016-17 financial year. Achievements for May

· Commissioning of all three sewerage pumping station (SPS) and upgraded network

completed. · Decommissioning of redundant assets is in progress.

Major issues · No significant issues. Financial Performance

Forecast ($) 11,600,000 Budget ($) 24,200,852

Expenditure ($) 10,907,441 ITD Expenditure ($) 23,508,293

Variance ($) 692,559 Remaining ($) 692,559

Variance (%) 6% Remaining (%) 3%

Year to Date Whole Project


Commonwealth Games Western Force Main Duplication to Coombabah Sewage Treatment Plant Project scope and budget This project involves upgrade of the last section of the Western Force Main from sewerage pumping station D57 to Coombabah Sewage Treatment Plant and is designed to cater for projected growth within the Coombabah sewerage catchment. The detailed design work was completed in 2014-15 however ongoing issues with environmental studies and approvals delayed the overall project schedule. The construction contract was awarded in April 2016 with construction anticipated to reach completion in early 2017. Initial budget approval for 2016-17 was $7.52 million, however following budget reviews throughout the financial year the budget has been adjusted to $6.42 million. The project is now expected to carry over into the first quarter of 2017-18. Achievements for May · Limited construction works recommenced late in April following site flooding resulting

from the severe weather event in March. · Continuation of works on the valve pit and preparation for final connections were carried

out.

Major issues · Wet weather events in late March caused significant site flooding which delayed works in

April and May.

Financial Performance

Forecast ($) 6,302,438 Budget ($) 7,065,409


Variance ($) 903,963 Remaining ($) 1,021,526



739th Council Meeting 25 July 2017 20 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) Sewerage Pumping Station Emergency Storage Augmentations Project scope and budget The Sewerage Pumping Station (SPS) Emergency Storage Augmentation project entails the detailed design and construction to upgrade 22 SPSs in the Stapylton, Helensvale, Pimpama, Coombabah and Merrimac East catchments and the Carrara Sports Precinct. These works are required to mitigate deficiencies of emergency storage to deal with emergent situations such as power and pump failure and to provide adequate storage capacities to cater for projected growth over the next 50 years. The initial budget for 2016-17 was $4.36 million. Due to amendments to the delivery plan some works have been deferred to 2017-18 and as a result the 2016-17 budget was reduced to $2.025 million in the March budget review. Achievements for May · Site possession for additional two sites (B37 and SS6 sewerage pump stations) passed

to contractor.

Major issues · Redesign for sewerage pump station A56 following updates to the sewerage network

model. A new overflow pipe is required rather than construction of an emergency storage. · Inspection of pipes at manufacturer’s factory revealed defects to internal polyethylene

liners which required repair, resulting in time delays.


Forecast ($) 1,280,457 Budget ($) 5,409,046

Expenditure ($) 437,032 ITD Expenditure ($) 798,078




739th Council Meeting 25 July 2017 21 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) Long Term Recycled Water Release Project scope and budget The City’s existing excess recycled water release system at the Seaway is nearing capacity. The aim of this project is to plan and deliver a long term recycled water release solution. This is the largest project within GCWW. A Long Term Recycled Water Release Staging Plan was adopted by Council in August 2015 which is based on options to stage construction and minimise capital expenditure in the immediate future by optimising existing infrastructure and deferring implementation of the ultimate recycled water release solution. Initial budget approval for 2016-17 is $4.0 million. The current budget of $4.0 million was reviewed at the March 2017 budget review after receipt of Design and Construct tenders and a $1.5 million reduction was requested to accommodate a revised marine construction works program. Achievements for May

· Following successful negotiations an Early Works Agreement has been reached with a

preferred tenderer in advance of an award of the full contract. The Early Works Agreement consists of two parts; progression of regulatory approvals and review of hydraulic design model. It is expected to be completed by mid-July 2017 with the aim of reducing risks identified by the tenderer on the above tasks before both parties enter into the full contract.

Major issues · The revised delivery program will reduce project risks associated with a compressed

construction schedule for the marine works before the Commonwealth Games blackout period with only a minor delay to overall project timing.


Forecast ($) 1,620,349 Budget ($) 74,000,000





739th Council Meeting 25 July 2017 22 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) Coombabah Sewage Treatment Plant Screening Grit Removal Upgrade 2014-16 Project scope and budget This project replaces and upgrades the existing grit and screening conveyor system incorporating enclosed automatic bins and grit classifiers in the Preliminary Treatment Facility building at the Coombabah Sewage Treatment Plant and addresses regulatory, safety and asset renewal requirements. Construction commenced in August 2016 and is scheduled for completion in 2016-17. Initial budget for 2016-17 was $3.15 million however, following budget reviews through the financial year the budget was adjusted to $3.43 million. Achievements for May · One switchboard has been delivered to site and installation has commenced.

Major issues No major issues identified.


Forecast ($) 3,022,409 Budget ($) 3,673,342


Variance ($) 50,452 Remaining ($) 453,043



739th Council Meeting 25 July 2017 23 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) Refurbishment of Process Tanks at Elanora and Coombabah Sewage Treatment Plants Project scope and budget This project involves the refurbishment of six process tanks and three pumping facilities at Elanora and Coombabah Sewage Treatment Plants (STP) including process tank structures and mechanical and electrical components. The assets will be replaced or renewed to “as new” condition in order to comply with operational safety standards and Department of Environment and Heritage Protection (DEHP) licence requirements. This is a three year program totalling $7.5 million. The construction contract was awarded to Aquatec Maxcon Pty Ltd on 30 June 2015. The need to ensure the treatment plants continue to operate effectively throughout construction adds significant complexity to this project. Initial budget for 2016-17 was $2.9 million with the revised budget now being $3.3 million following reviews throughout the year. Completion of works expected in the 2017-18 financial year. Achievements for May · Coombabah Sewage Treatment Plant – Bioreactor E

- Completion of central walkway light poles and painting of gearboxes.

· Elanora Sewage Treatment Plant:

- Work is progressing on the Dissolved Air Floatation Tank. - Work is progressing on the Return Activated Sludge Pump Station No 1. - Secondary clarifiers A and B defects work identified and scheduled for completion

during June 2017.

Major issues Whilst 2016-17 expenditure will exceed the current approved financial year budget the total multi-year project is still expected to be completed within total project budget allocation.


Forecast ($) 3,180,000 Budget ($) 7,354,175


Variance ($) (346,929) Remaining ($) 23,071

Variance (%) (11%) Remaining (%) 0%


739th Council Meeting 25 July 2017 24 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 5.9 Other Financial Activities 5.9.1 Community Service Obligations

In accordance with Sections 23 and 24 of the Local Government Regulation 2012: …The cost of carrying out community service obligations, less any revenue received from performing the obligations must be treated as revenue for the significant business activity. {Section 23} (and) …A community service obligation is an obligation the local government imposes on a business entity to do something that is not in the commercial interests of the business entity to do. Example of a community service obligation – giving a price concession to a particular group of customers, including pensioners, seniors and students {Section 24} 5.9.1.1 Community Service Obligations – Infrastructure Charges Waivers Detailed information is not currently reported with regard to the permanent discounting of infrastructure charges for “existing buildings”, “expansion” and “family accommodation” development applications. For the 2016-17 year to date, foregone revenue of $181,612 in the form of waived infrastructure charges under the City’s Non-Profit Community Group Rebate system has been identified. 5.9.1.2 Community Service Obligations – Catchment Management Unit The Catchment Management Unit transferred to Gold Coast Water and Waste, effective 1 July 2016. This activity protects human health in recreational waters by monitoring the state of the City’s water environments and providing rapid reporting of the health status of primary contact recreation areas. It supports the maintenance of legislated environmental values in the City’s water environments through catchment and stormwater planning and implementation of appropriate environmental restoration actions. These activities are funded by way of a Community Service Obligation (CSO). At adoption of Council’s initial budget, the total value of this CSO is $4,143,655. The total value of the CSO including funding re-provided from 2015-16 was increased to $4,616,942 in the September budget review. As shown in Table 4 (below), operational business as usual activities for the Catchment Management Unit are continuing, with expenditure for those activities at 31 May 2017 being slightly below budget.


Table 4 – Summary of Catchment Management Unit – Operational Expenses

Projects that have been identified within the Capital Budget Centre for Catchment Management are detailed in Table 5 (below). The main focus of these projects is to mitigate water quality, environmental and ecological impacts on waterways throughout the City. The major project being undertaken is to provide foreshore stabilisation around the lake within Damian Leeding Memorial Park. This project will continue into the 2017-18 financial year and budget of $850,000 was re-provided at the March 2017 budget review for this purpose

Table 5 – Summary of Catchment Management Unit – Capital Projects

Initial Budget ($)

Revised Budget ($)

YTD Actuals ($)

Spent (%)

CMU Operations 1,362,490 1,362,242 1,395,458 102.4%

Catchment Activities 159,100 117,090 38,047 32.5%

Healthy Waterways Contribution 290,800 332,800 290,817 87.4%

WaterSafe Monitoring & Investigations 367,890 567,890 387,002 68.1%

Laboratory Testing Services 475,900 475,900 457,331 96.1%

Non-Capped Capital 3,267 0.0%

Water Cycle Implementation 107,100 105,461 104,638 99.2%

SLA for Corporate Services 258,000 258,000 236,500 91.7%3,021,280 3,219,383 2,913,061 90.5%

Catchment Management Unit - Operational

Initial Budget ($)

Revised Budget ($)

YTD Actuals ($)

Spent (%)

30097 Coolangatta Creek 41,000 0 0 0.0%30260 Lakes and Wetlands. 102,500 143,500 37,371 26.0%

Sub-Total 143,500 143,500 37,371 26.0%30177 Flat Rock Creek 51,250 0 0 0.0%30324 Nerang River 0 51,250 14,014 27.3%

Sub-Total 51,250 51,250 14,014 27.3%30103 Coombabah Creek 51,250 0 0 0.0%30108 Coomera River Management 61,500 0 0 0.0%30126 Currumbin Creek Management 66,625 0 0 0.0%30272 Loders/Biggera Creek Rehab 30,750 0 0 0.0%30286 McCoys Creek 61,500 0 0 0.0%30357 Pimpama River 51,250 0 0 0.0%30404 Channel Stability 471,500 162,309 211,164 130.1%30450 Sandy Creek 51,250 0 0 0.0%30452 Scientific Equipment 20,500 20,500 8,517 41.5%30512 Tallebudgera Creek 61,500 0 0 0.0%71330 Damian Leeding Foreshore Stabilisation 0 170,000 181,707 106.9%

Sub-Total 927,625 352,809 401,388 113.8%1,122,375 547,559 452,773 82.7%

Catchment Management Unit - Capital

739th Council Meeting 25 July 2017 26 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 5.9.2 Water and Sewage Leakage Relief

The objective of this policy is to ensure uniform and transparent application of relief from water consumption charges and sewage volumetric charges in cases of proven concealed leakage. Revenue Services administers the Policy on behalf of the City. The table below provides summary level detail of the leakage remissions approved to 31 May 2017. A total of 219 approvals were processed during the month of May, with remissions totalling $0.24 million paid. Year to date remissions are 107.4% of the full year budget, currently exceeding the annual budget by $0.15 million.

Table 6 – Summary of Concealed Leakage Remissions

As illustrated in Table 7 (below), 86.4% of applications approved to date are for residential customers, which by value, represents 51.7% of remissions provided. Non-residential customers represent 13.6% of the quantity of applications approved and account for 48.3% of the total value of remissions provided.

Table 7 – Summary of Concealed Leakage Remissions by Customer Type and Product

Table 8 (below), depicts the value of remissions provided in 2016-17 (to date), compared to the past three financial years, together with a comparison of the number of applications processed each month. Key points to note:

· Total quantity of remission applications processed to May 2017 is 22.1% higher than the same period last year; with total value of remissions provided 53.6% higher. Reduced staffing levels last year resulted in delays in processing. With virtually a full staffing contingent this year, applications are able to be processed in a more timely fashion.

Month Number of Approvals

Total Leak Volume (kl)

Average Loss per Account (kl)

Water Remission Value

($'000)

Sewer Remission Value

($'000)

Total Remission Value

($'000)Jul-16 145 50,764 350 89,896 4,348 94,244

Aug-16 348 151,821 436 240,069 62,037 302,106 Sep-16 409 156,160 382 251,381 56,822 308,203 Oct-16 253 105,419 417 171,477 22,490 193,967 Nov-16 359 126,025 351 219,180 43,334 262,514 Dec-16 102 48,836 479 51,913 104,216 156,130 Jan-17 177 62,925 356 103,051 37,705 140,756 Feb-17 201 74,109 369 125,834 32,914 158,748 Mar-17 256 104,187 407 141,015 49,794 190,809 Apr-17 201 66,327 330 92,180 5,852 98,032

May-17 219 101,999 466 162,476 80,827 243,302 Total 2,670 1,048,572 392.72 1,648,472 500,339 2,148,811 Budget provided for year 1,442,000 558,000 2,000,000 Proportion of budget approved to date 114.3% 89.7% 107.4%

Customer Type Total Leak

# % Volume (kl) Water ($'000)

Sewer ($'000)

Total ($'000) %

Residential Customers Owner Occupied premises 1,687 63.2% 417,583 880,218 880,218 41.0% Rental/Tourist Rental premises 621 23.3% 215,294 230,764 230,764 10.7%Total Residential Customers 2,308 86.4% 632,877 1,110,982 1,110,982 51.7%Non-Residential Customers 362 13.6% 415,695 537,490 500,339 1,037,829 48.3%

2,670 100.0% 1,048,572 1,648,472 500,339 2,148,811 100.0%Proportion of Total Remissions 76.7% 23.3%

Approvals Value of Remissions Provided


· Value of the water remissions component to May 2017 is 67% higher than for the

same period last year, 24% above the year to date budget.

· Value of the sewer remissions component to May 2017 is 21% higher than for the same period last year, and 3% below year to date budget.

· The average remission for a residential customer is $491 (last year: $418), while the average remission for a non-residential customer is $2,947 (last year: $2,039).

Table 8 – Comparison of Concealed Leakage Remissions to prior years

5.9.3 Procurement Savings Procurement savings have been identified by the Office of the Chief Procurement Officer (OCPO) for water and sewerage services for the months of July 2016 to February 2017. Operational procurement savings for July to February have been included in budget reviews throughout the year.

Table 9 – Procurement Savings identified by OCPO- 2016-17 financial year

Gold Coast Water and Waste’s budget process incorporates a total review of all capital works estimates, addressing actual contract costs. Accordingly, identified procurement savings are captured through this separate review process, rather than being specifically identified as procurement savings in the capital budget review. Procurement savings are recognised through a transfer to the Water and Sewerage Infrastructure Reserve.

Applications Cumulative TotalsProcessed July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June2013-14 186 313 531 777 1,168 1,560 1,725 1,860 2,035 2,454 2,869 3,129 2014-15 319 537 913 1,141 1,503 1,790 1,953 2,142 2,365 2,615 2,826 3,005 2015-16 124 345 597 786 967 1,109 1,299 1,437 1,674 1,895 2,187 2,411 2016-17 145 493 902 1,155 1,514 1,616 1,793 1,994 2,250 2,451 2,670 % Movement 16.9% 42.9% 51.1% 46.9% 56.6% 45.7% 38.0% 38.8% 34.4% 29.3% 22.1% (100.0%)

Remissions Cumulative Totals

Provided ($'000) July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June13-14 Water 340 497 699 909 1,264 1,693 1,857 1,955 2,195 2,525 2,903 3,126 13-14 Sewer 16 100 205 270 348 416 475 487 521 594 804 988 Total 2013-14 356 597 905 1,180 1,612 2,109 2,332 2,442 2,716 3,119 3,706 4,114 14-15 Water 180 400 677 891 1,095 1,290 1,403 1,498 1,645 1,773 1,897 2,005 14-15 Sewer 115 356 524 634 654 749 786 807 907 930 995 1,080 Total 2014-15 295 756 1,201 1,525 1,749 2,039 2,189 2,304 2,552 2,704 2,892 3,085 15-16 Water 56 129 237 337 425 498 580 667 783 883 986 1,130 15-16 Sewer 15 38 76 126 159 193 220 248 270 371 413 453 Total 2015-16 72 167 313 464 584 691 800 915 1,053 1,254 1,399 1,583 16-17 Water 90 330 581 753 972 1,024 1,127 1,253 1,394 1,486 1,648 16-17 Sewer 4 66 123 146 189 293 331 364 414 420 500 Total 2016-17 94 396 705 899 1,161 1,317 1,458 1,617 1,807 1,906 2,149 - % Movement(16-17 vs 15-16) 31.3% 136.9% 125.3% 93.8% 98.8% 90.6% 82.2% 76.8% 71.6% 51.9% 53.6% (100.0%)

Procurement Savings ($'m)

July Aug Sept Oct Nov Dec Jan Feb Total Removed in September

Removed in December

Removed in March

Total Procuremen

Operational 0.32 0.19 0.56 0.31 0.12 0.17 0.05 0.14 1.85 0.51 0.98 0.35 1.85 Capital 2.52 0.26 1.58 0.55 0.59 1.18 0.02 0.29 6.99 2.78 2.72 1.49 6.99

2.84 0.45 2.13 0.86 0.71 1.35 0.06 0.42 8.84 3.29 3.70 1.84 8.84

Recoverable 0.00 0.01 0.00 0.00 0.00 0.02 0.00 0.00 0.06

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

739th Council Meeting 25 July 2017 28 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 5.10 Future Budgetary Trends

· Contributed Assets: Contributed Assets processed to May 2017 total $43.7 million which exceeds full year revised forecast of $40.0 million. This revenue is contingent on development activity with further contributed assets expected to be recognised during the remainder of the year.

· Bulk Water Purchases and Volumetric Revenue. Year to date bulk water demand

has exceeded forecast by 1,899ML. This has resulted in additional volumetric revenue of $10.5 million and additional bulk water purchases of $5.3 million.

6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Not Applicable. 7 GOLD COAST 2018 COMMONWEALTH GAMES™ IMPACT There are no identified connections to the 2018 Commonwealth Games (GC2018). 8 FUNDING AND RESOURCING REQUIREMENTS Not Applicable. 9 RISK MANAGEMENT The following risk assessment applies to this report: Risk Number Description

Risk No. CO000435

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

10 STATUTORY MATTERS Not Applicable.

739th Council Meeting 25 July 2017 29 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 11 COUNCIL POLICIES The following policies have been taken into account when preparing this report: § Gold Coast Water Capital Structure and Community Returns Policy § Revenue Policy § City of Gold Coast Budget Review Policy § Water and Sewage Leakage Relief Policy. 12 DELEGATIONS Not Applicable. 13 COORDINATION AND CONSULTATION

Name and/or Title of the Stakeholder Consulted

Directorate or Organisation

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

Marilyn Hildebrandt Executive Coordinator Directorate Finances

Office of the CEO Yes

14 STAKEHOLDER IMPACTS Not Applicable. 15 TIMING Not Applicable. 16 CONCLUSION Water and Sewerage Services Earnings before Interest and Tax (EBIT) for the period to 31 May 2017 is 8.3% or $15.53 million above forecast. Major factor contributing to this result is:

· Operating revenue – above forecast $12.79 million · Capital revenue – above forecast $7.99 million.

This is partially offset by flow-dependant expenditure being above forecast by $5.16 million. Performance will continue to be monitored to ensure controllable expenditure is minimised. This is achieved through rigorous internal processes which include detailed review of all projects to ensure only prudent and efficient expenditure is incurred.

739th Council Meeting 25 July 2017 30 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 3 (Continued) WATER AND SEWERAGE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That attachment 3.2 be deemed a confidential document in accordance with sections

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

2 That Council notes the Water and Sewerage Services Monthly Financial Report for the

period ended 31 May 2017. Author: Authorised by: Karen O’Brien Paul Heaton Manager Business Performance Director Gold Coast Water and Waste 14 June 2017 TRACKS REF: #62286998 COMMITTEE RECOMMENDATION WW17.0719.003 moved Cr O’Neill seconded Cr Boulton 1 That attachment 3.2 be deemed a confidential document in accordance with

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

2 That Council notes the Water and Sewerage Services Monthly Financial Report for the period ended 31 May 2017.

CARRIED


Attachment 3.1

Financial Management Report – 31 May 2017

Full YearAct Revised

BudgetVar Var Initial

BudgetRevised Budget

Month ended 31 May 2017 $000's $000's $000's % $000's $000'sRevenueService Charges 218,008 215,522 2,487 1.2% 235,025 235,025Volumetric Charges 236,109 225,578 10,531 4.7% 242,500 244,414Less: Concealed Leakage (2,149) (1,846) (303) (16.4%) (2,000) (2,000)Interest on Outstanding Rates 1,504 1,604 (100) (6.3%) 1,750 1,750Interest on Investments 7,003 7,003 0 0.0% 6,530 7,630Fees and Charges 4,654 4,481 173 3.9% 4,788 4,935Total Operating Revenue 465,129 452,342 12,788 2.8% 488,593 491,754Operating ExpenditureFLOW-DEPENDANT EXPENDITUREBulk Water Purchases 158,378 153,124 (5,254) (3.4%) 161,605 165,842Electricity 9,180 8,998 (183) (2.0%) 9,852 9,816Biosolids Disposal 3,225 3,547 322 9.1% 3,870 3,870Chemicals 2,941 2,898 (43) (1.5%) 3,041 3,162Total Flow-Dependant Expenditure

173,724 168,568 (5,157) (3.1%) 178,367 182,690

Operating Revenue net of Flow-Dependant Expenditure

291,405 283,774 7,631 2.7% 310,226 309,064

Gross Margin 0.7 0.7 0.7 0.7

CONTROLLABLE EXPENDITUREEmployee Expenses 42,393 43,821 1,428 3.3% 44,378 47,540Services 17,721 18,238 517 2.8% 19,477 20,347Council Corporate SLAs 17,390 17,390 (0) (0.0%) 19,871 18,971Materials 5,253 5,790 537 9.3% 6,130 6,355Council Fleet and Plant 4,082 3,876 (206) (5.3%) 4,189 4,239Sew age Treatment Charge 3,044 3,071 27 0.9% 3,351 3,350Insurance Premiums 1,692 1,692 0 0.0% 1,975 1,846Other Expenditure 2,108 1,375 (733) (53.3%) 1,500 1,500Consultants 1,008 973 (35) (3.6%) 845 1,312Regulatory Expenses 37 85 47 55.8% 249 93Total Controllable Expenditure 94,728 96,311 1,583 1.6% 101,963 105,552Total Operating Expenditure 268,453 264,878 (3,574) (1.3%) 280,330 288,242

Loss on Sale of Assets 4,611 3,750 (861) (23.0%) 5,000 5,000

Net Profit before Capital Revenue 192,066 183,713 8,353 4.5% 203,263 198,512

Capital RevenueDevelopers Contributions 51,200 50,416 784 1.6% 40,000 55,000Contributions and Donations Received 414 275 139 50.4% 500 286Contributed Assets 43,733 36,667 7,066 19.3% 15,000 40,000Total Capital Revenue 95,346 87,358 7,988 9.1% 55,500 95,286

EBITDA 287,412 271,071 16,341 6.0% 258,763 293,797

Depreciation 85,146 84,330 (816) (1.0%) 92,000 92,000

EBIT 202,266 186,741 15,525 8.3% 166,763 201,797Interest Expense (QTC Loan) 2,810 2,810 (0) (0.0%) 3,065 3,065Interest Margin Expense 808 808 (0) (0.0%) 881 881Shareholder Interest Expense 73,676 73,673 (3) (0.0%) 80,374 80,374Income Tax Equivalents 35,616 38,202 2,587 6.8% 38,605 41,675NPAT 89,357 71,248 18,109 25.4% 43,838 75,802

Participation Return 0 0 0 0.0% 0 0

Retained earnings impact after participation return

89,357 71,248 18,109 25.4% 43,838 75,802

Year to DateWater & Sewerage Services Income Statement


ITEM 4 GOLD COAST WATER AND WASTE WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) Attachment 1: Detailed Income Statement 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT The purpose of this report is to provide the Gold Coast Water and Waste Committee with an update of Waste Services financial performance as at 31 May 2017. Comparisons are against the March 2017 Review Adopted Budget. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION 5.1 High Level Financial Summary

Table 1 - Waste Services - Year to Date Financial Summary

Table 1 above shows Waste Services financial position as at 31 May is $4.1 million (12.9%) ahead of forecast with Operating Revenue being $2.0 million ahead of forecast and Operating Expenses being $2.1 million below forecast. Significant variances will be discussed in the following paragraphs with a detailed Income Statement contained in Attachment 1 to the report.

ActualRevised Budget Var Var

Initial Budget

Revised Budget

Period ended 31 May 2017 $M $M $M % $M $MOperating Revenue 94.0 92.1 2.0 2.1 96.8 100.2

Operating Expenses 58.6 60.7 2.1 3.4 64.5 68.9

Total Operating Profit 35.4 31.3 4.1 12.9 32.3 31.3

Loss on Sale of Assets 0.0 0.0 0.0 0.0 0.0 0.0

EBITDA 35.4 31.3 4.1 12.9 32.3 31.3

Year to Date Full YearWaste Services Financial Summary


ITEM 4 (Continued) GOLD COAST WATER AND WASTE WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 5.2 Operating Revenue ($2.0 million Favourable) Operating revenue is $2.0m ahead of forecast and is influenced by the following:

· Waste Utility Rate Revenue - $1.06 million favourable: The waste utility rate revenue received for the year is slightly ahead of forecast, influenced by additional temporary services being requested by customers.

· Refuse tipping fees - $0.52 million favourable: Refuse tipping fees are ahead of

forecast due to higher disposals at City facilities by external customers.

· Fees and charges - $0.16 million favourable: Fees and charges revenue is ahead of forecast predominantly due to the right for service payments being received on new/replacement bins coming into service. The additional revenue is consistent with new/replacement bins purchased during the year.

Table 2 shows the total number of bins at as 31 May 2017 and the growth this financial year.

Table 2 - Waste Collection Services

5.3 Operating Expenditure ($2.1 million Favourable) At a whole business unit level, operating expenses are $2.1 million (3.4%) below year to date forecast. Variances at individual line item level are further explained below.

Waste collection binsBins in

service as at 30/05/2017

Bins in service as at 30/06/16

Bin increase\ (decrease) %

General waste (weekly)Domestic wheelie bins 185,855 181,956 3,899 2.1%Commercial wheelie bins 7,009 6,937 72 1.0%Bulk bins (dommestic and commercial) 2,845 2,783 62 2.2%Total weekly general waste services 195,709 191,676 4,033 2.1%Recyclable waste (weekly) Commercial wheelie bins 342 329 13 4.0%Bulk bins (dommestic and commercial) 1,470 1,367 103 7.5%Total weekly recyclable waste services 1,812 1,696 116 6.8%Recyclable waste (fortnightly)Domestic wheelie bins 177,511 173,436 4,075 2.3%Commercial wheelie bins 2,394 2,320 74 3.2%Total forntightly recyclable waste services 179,905 175,756 4,149 2.4%Other (fortnightly)Green waste 23,404 19,655 3,749 19.1%Total forntightly other services 23,404 19,655 3,749 19.1%

Year to Date


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6)

5.3.1 Employee Expenses ($0.1 million Unfavourable) Employee expenses are $0.1 million or 1.4% above forecast. This is mainly due to overtime costs at the landfill operations and the transfer stations being higher than forecast. The higher than forecast overtime is reflective of both an increase in customer usage of the facilities and staff vacancies. 5.3.2 Materials ($0.2 million Unfavourable) Materials expenses are $0.2 million or 8.6% above forecast. This is due to a both a budget allocation issue where materials expenditure was included within the services budget and increased fuel costs at the Stapylton Landfill to remove a significant volume of waste water following ex cyclone Debbie. 5.3.3 Services ($1.9 million Favourable) Major contributors to this variance include:

a. Leachate Removal - $0.5 million below forecast. The removal of leachate from the Stapylton landfill site is $0.5 million below forecast due to lower volume of leachate removed from the site. For comparative purposes, volume removed is 37% lower than the same period last financial year.

b. Waste Reduction Program - $0.5 million below forecast. As reported in previous

reports, there have been issues with the Contractor for the collection of green waste. These issues have been resolved and it is anticipated that full year expenditure will align with the forecast. In addition lower expenditure has been incurred on concrete crushing at Stapylton Landfill due to the contractor being placed in liquidation. A stockpile of concrete waste is being maintained on site however and it is difficult to quantify at this point in time the costs to have this crushed.

c. E-waste and hazardous waste - $0.3 million below forecast. This forecast incorporated funding that has not been incurred for the extension of the Household Hazardous Waste program to the Reedy Creek and Molendinar facilities. The implementation of this program is being considered as part of overall review of the City’s waste and recycling centres. The introduction of the product stewardship scheme for the disposal of paint has also influenced the lower than forecast expenditure.

d. Landfill Capping and Rehabilitation – $0.3 million below forecast. Total project

expenditure is in line with forecast however the current result is reflective of an incorrect allocation of actual expenditure against the Council fleet and plant category.

e. Recycling Promotions – $0.2 million below forecast. Lower expenditure has been

incurred this year reflective of this year’s focus being on planning future promotional activities to enhance strategic outcomes.


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 5.3.4 Waste Collection Payments ($0.4 million Favourable) Waste collection payments are below forecast by $0.4 million or 1.5%. This is due to lower general waste collection costs partially offset by higher than forecast kerbside collection costs. General waste collection costs are below forecast mainly due to the budget phasing of waste collection costs. 5.3.5 Consultants ($0.1 million Favourable) Consultants are $0.1 million or 13% below forecast. Expenditure on Landfill Planning is in line with forecast, however are being allocated against the Services category. 5.4 Capital Program The 2016-17 Waste Services initial capital program consisted of 25 projects totalling $11.44 million. The inclusion of Reprovisions increased the initial budget to $18.39 million. Following the September budget review and the reallocation of several projects that were operational in nature, the capital program was revised to 19 projects totalling $14.23 million. Further reductions were actioned at both the December 2016 and March 2017 budget reviews resulting in a revised budget of $3.10 million.

Table 3 – Capital Expenditure ($ Million) Year to date expenditure of $1.73 million represents a variance of 37% below the year to date forecast.

Actual Expenditure YTD Budget Variance Variance Q3 Revised

BudgetQ2 Revised

BudgetQ1 Revised

Budget Initial Budget

($M) ($M) ($M) % ($M) ($M) ($M) ($M)

Landfills 1.21 1.81 (0.59) (32.9%) 2.02 7.93 11.32 7.23

Waste and Recycling Centres 0.52 0.94 (0.42) (44.8%) 1.07 0.80 1.87 2.03

Waste Collection (0.00) - (0.00) - - - 0.62 1.76

Fleet and Plant - - - - - 0.42 0.42 0.42

Total Capital 1.73 2.75 (1.02) (37.0%) 3.10 9.15 14.23 11.44

PROGRAM

Waste Management Capital Expenditureas at 31 May 2017

Year to Date Full Year


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 5.4.1 Landfills Program This program contains capital investments associated with the establishment and operation of landfill sites across the City. The major projects identified within this program in the 2016-17 initial budget are:

Table 4 – Landfills Capital Program ($ Million) The landfills program is $0.59 million (32.4%) below forecast. The following projects are the main contributors to the variance: · Reedy Creek Landfill Site Improvements - $0.19 million below forecast. Works have

commenced with approximately half the program to be completed by 30 June 2017. Supplier delays will result in remaining packages of work to be finalised early in the first quarter of 2017-18. A budget request will be made at the September budget review accordingly.

· Refuse Disposal – Emergent - $0.18 million below forecast. Works have recommenced in May following wet weather delays with planned works delivered by 30 June 2017.

· Stapylton Landfill Site Improvements - $0.11 million below forecast. There are

seven packages of work within this program, four of which are underway, one completed and two in the procurement phase. Whilst significant progress has been made since detailed scope was defined in April, some works will carry over into the 2017-18 financial year.


BudgetQ2 Revised

BudgetQ1 Revised


($M) ($M) ($M) % ($M) ($M) ($M) ($M)

Development / Extension of Landfill Facilities

Landfill Property Development (Reedy Creek) - - - - - - 3.00 3.00

Landfill Cell Extensions 0.88 0.83 0.05 5.9% 0.83 0.72 1.10 -

Total - Development / Extension 0.88 0.83 0.05 5.9% 0.83 0.72 4.10 3.00

Other Landfill Requirements

Suntown Closure - - - - - 5.80 5.80 -

Refuse Disposal - emergent 0.22 0.40 (0.18) (44.2%) 0.47 0.47 0.47 0.47

Forward Planning & Design - - - - - - - 0.21

Environmental Network Monitoring - - - - - 0.20 0.20 0.20

Other 0.12 0.58 (0.46) (79.8%) 0.70 0.74 0.74 0.32

Total - Other Landfill Requirements 0.34 0.97 (0.64) (65.2%) 1.17 7.21 7.21 1.20

Capping and Remediation of Landfill Sites

Tugun Landfill - - - - - - - 1.90

Reedy Creek Landfill - - - - - - - 0.60

Stapylton Landfill - - - - - - - 0.53

Other - - - - - - - -

Total - Capping and Remediation - - - - - - - 3.03

Total Landfills 1.22 1.81 (0.59) (32.4%) 2.00 7.93 11.31 7.23

LANDFILLS



· Landfill Minor Renewals 2016-17 - $0.09 million below forecast. The program has

been reduced as a result of the recent wet weather. Works unable to be completed this financial year will continue in the 2017-18 year with an appropriate budget request at the September budget review.

5.4.2 Waste and Recycling Centres Program This program contains investments associated with the establishment and operation of Waste and Recycling Centres across the City. The major project identified within this program is the Coomera Waste and Recycling Centre with an approved initial budget of $1.0 million. The budget for this project was reduced to zero at the March budget review pending the finalisation and approval of the Business Case.

Table 5 – Waste and Recycling Centres Program ($ Million) The waste and recycling centres program is $0.42 million (44.8%) below forecast. The following projects are the main contributors to the variance: · Purchase of new RORO bins - $0.20 million below forecast. This project is tracking

below forecast due to delays in the delivery of RORO bins, however it is still anticipated that the project will be completed by 30 June 2017.

· Transfer Station Plant and Equipment - $0.07 million below forecast. This project is tracking below forecast due to delays in the delivery of cardboard compactors. The compactors are expected to be delivered in June and the project will be completed by 30 June 2017.

· Transfer Station Minor Civil Works 2016-17 - $0.14 million below forecast. This

project is tracking below forecast due to delays in the installation of solar panels and bin flap prototypes. The installation of the solar panels is progressing with expected completion by 30 June 2017. The bin flap prototypes are expected to be installed in July 2017.


BudgetQ2 Revised

BudgetQ1 Revised


($M) ($M) ($M) % ($M) ($M) ($M) ($M)

Coomera Transfer Station - - - - - 0.23 1.00 1.00

RORO Bins 0.20 0.39 (0.20) (50.3%) 0.47 0.18 0.16 0.11

Forward Planning and Design 0.00 - 0.00 - - - - 0.21

Other 0.32 0.55 (0.22) (41.0%) 0.61 0.40 0.71 0.71

Total Transfer Stations 0.52 0.94 (0.42) (44.8%) 1.07 0.81 1.87 2.03

WASTE AND RECYCLING CENTRES



5.4.3 Waste Collection Program This program initially contained three projects associated with waste collection across the City with a budget of $1.77 million. It has since been identified that these projects are operational in nature and appropriate budget movements have been made.

Table 6 – Waste Collection Capital Portfolio ($ Million)

5.5 Status Updates - Major Investments The following major investments were identified in Waste Management Annual Performance Plan for implementation during 2016-17. 5.5.1 Capping and Remediation works at Landfills - $0.05 million below forecast Program scope and budget The City is responsible for utilising, managing and monitoring a total of seven landfill sites with two active sites at Stapylton and Reedy Creek. In relation to landfill operations, the City:

· segregates its landfill sites into engineered cells · ensures additional cells are created ready for use once the existing operational cell is

filled to capacity · progressively caps and remediates filled cells to meet both regulatory environmental

conditions and reduce water infiltration and leachate generation. Current status

· Stapylton Landfill ($0.06 million below forecast): Delays have been experienced due to the March severe wet weather event. Consolidation of the work program has been undertaken with the transport of clay capping material re-commencing and major works scheduled for June 2017.

· Reedy Creek Landfill: Minimal works were required on this site this financial year with budget adjustments made accordingly.

· Tugun Landfill: Project deferred until 2017-18 pending negotiated assessment of the best ultimate use of the site.


BudgetQ2 Revised

BudgetQ1 Revised

BudgetInitial

Budget

($M) ($M) ($M) % ($M) ($M) ($M) ($M)

Refuse / Recycling Bins - - - - - - - 1.12

Hardware / Software - Waste Collection - - - - - - - 0.62

Waste Service Area Extensions - - - - - - - 0.03

Total Waste Collection - - - 0.00 - - - 1.77

WASTE COLLECTION


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) Major Issues No major issues identified. Financial Performance

Table 7 – Capping & Remediation Works 2016-17 5.5.2 Resource Recovery (Waste Reduction Program) - $0.69 below forecast Program scope and budget City of Gold Coast supports a waste management system that operates on the principles of waste hierarchy. Recycling and recovery are two of the easiest alternatives to landfill disposal and they represent the majority of actions in the City’s Solid Waste Strategy 2024. This includes recycling of clean, separated, high-value materials (such as metals, plastics and concrete), recovering nutrients from organic wastes (to create composts and fertilisers) and potential energy production from waste materials. The aim of this program is to promote reuse and recycling of these products thereby reducing waste to landfill. The major waste streams targeted in this program are concrete and greenwaste however other construction and demolition wastes are also reprocessed. Greenwaste is reused through two main programs; mulching and re-use on-site and transported off-site for composting. The amount of green waste presented at the Waste and Recycling Centre (WRC) varies with the prevailing weather conditions. Concrete is stockpiled and crushed on site at the City’s landfills. Currently the majority of this material is re-used on-site, however opportunities for sale of this product are under investigation. As per Solid Waste Strategy 2024, the total waste resource recovery (recovered or recycled) target for 2016-17 is 42.5%, with a domestic waste recovery target of 32%. Current Status

· Total waste resource recovery achieved for the year to date is better than target by 2.5% at 45%.

· Domestic waste resource recovery is currently 26%, 6% lower than the target of 32%.


BudgetQ2 Revised

BudgetQ1 Revised

BudgetInitial

Budget

($M) ($M) ($M) % ($M) ($M) ($M) ($M)

Tugun Landfill - - - - - 1.93 1.93 1.00

Reedy Creek Landfill 0.01 0.01 (0.00) (0.0%) 0.01 0.01 0.60 0.60

Stapylton Landfill 0.53 0.57 (0.05) (8.0%) 0.57 0.53 0.53 0.53

Total Transfer Stations 0.53 0.58 (0.05) (7.9%) 0.58 2.47 3.06 2.13

CAPPING & REMEDIATION


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) Major Issues

· Council’s Greenwaste recycling contractor has failed to achieve its specified service levels and as such a significant volume of greenwaste remains on site. Recent discussions with the contractor have established a service plan to bring this work on track by the end of June 2017.

· Council’s concrete crushing contractor has advised it is now in voluntary liquidation

and as such will not perform any further works for Council. Consequently a new procurement arrangement needs to be implemented. Stockpiled concrete product will now need to be processed in 2017-18. This will likely result in an underspend this financial year and a request for additional funds at the 2017-18 September budget review.


Actual Expenditure

YTD Budget Variance Variance Q3 Revised

BudgetQ2 Revised

BudgetQ1 Revised

BudgetInitial

Budget

($M) ($M) ($M) % ($M) ($M) ($M) ($M)

Waste Reduction Program 2.17 2.85 (0.69) (24.1%) 3.08 3.08 2.75 2.77

Total 2.17 2.85 (0.69) (24.1%) 3.08 3.08 2.75 2.77


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 5.5.3 Purchase of Waste and Recycling Bins - $0.02 million below forecast Program scope and budget As part of Waste Services’ business as usual operation of the City’s domestic and residential waste collection services, a substantial cost is incurred each year for the acquisition and repair of refuse and recycled (wheelie) bins. Included in section 5.2 is a summary of the current waste collection services provided. Current Status · There were a total of 816 additional bins in service for the month comprising of:

· general waste – 350 · recyclable waste – 244 · green waste – 222.

· The provision of wheelie bins to customers is progressing within contractual timeframes. Major Issues No major issues identified. Financial Performance

Actual Expenditure


BudgetQ2 Revised

BudgetQ1 Revised

BudgetInitial

Budget

($M) ($M) ($M) % ($M) ($M) ($M) ($M)

Purchase of Waste and Recycling Bins 1.43 1.45 (0.02) (1.2%) 1.62 1.12 1.12 1.12

Total 1.43 1.45 (0.02) (1.2%) 1.62 1.12 1.12 1.12


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 5.5.4 Kerbside Clean-up - $0.08 million above forecast Program scope and budget During Council’s 2016-17 budget deliberations it was determined that a kerbside clean up service would be provided for the entire City over a two year period. This service was provided to Divisions 1 to 7 in the 2016-17 financial year. Divisions 8 to 14 will receive service in the 2017-18 financial year. This program provides residents the opportunity to have unwanted items removed (free of charge) that may be difficult to dispose of via other mechanisms. Current Status The kerbside clean-up program for:

· Divisions 8 to 14 scheduled for 2017-18 · Division 6 scheduled for 2017-18 funded by divisional funds · The 2017-18 schedule has been finalised and circulated to Councillors · No issues reported by Councillors in relation to the schedule.

Major Issues No major issues identified. Financial Performance

Actual Expenditure


BudgetQ2 Revised

BudgetQ1 Revised

BudgetInitial

Budget

($M) ($M) ($M) % ($M) ($M) ($M) ($M)

Kerbside Collection 1.18 1.10 0.08 7.5% 1.10 1.10 1.10 1.10

Total 1.18 1.10 0.08 7.5% 1.10 1.10 1.10 1.10


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 5.5.5 Solid Waste Strategy Implementation - $0.11 million below forecast Program scope and budget The Solid Waste Strategy 2024 was endorsed by Council in September 2015. The Strategy provides a framework for the City to develop a more sustainable and integrated approach to solid waste management. The Strategy is for nine years and is a legislative requirement under the Waste Reduction and Recycling Act 2011 (s 121). The annual program of work contributes to achieving the four important Strategy outcomes:

· The City and community actively practise waste avoidance and other positive waste behaviours.

· Waste re-use, recycling and resource recovery opportunities are maximised prior to landfill disposal.

· Our capacity to manage future waste is secured. · Solid waste management has minimal negative impact on our environment and public

health.

Current Status

· Waste and Recycling Centre (WRC) Review - Network Efficiency review contract awarded to Arcadis, inception meeting held

and site visits conducted in May. - Implementation of Wayfinding recommendations for Helensvale are underway.

· Assessment of Organic Waste Program - Progressing specification for the Advanced Waste Treatment Technology review. - Discussions with local composting company to process commercial food waste

trial. - Marketing material being developed.

· Commercial Food Waste Service: - Marketing and communication plan and project plan drafted with first draft of

marketing material received. - Project plan drafted. - Research requirements for bin line. - Pricing model being developed.

· Waste and Recycling Centre programs:

- Marketing and education plan developed and awaiting approval.

· Organic Waste Programs: - 360L recycling bin marketing and education plan drafted and awaiting approval.



Major Issues Delays in the Waste and Recycling Centre Review will result in carry over to next financial year. Financial Performance

5.5.6 Coomera Transfer Station Design – Budget reduced to zero Program scope and budget Waste Services has been implementing a facility rationalisation program over the past few years resulting in the closure of six facilities, the upgrade of one facility and the establishment of one new facility. A potential need for a new facility at Coomera has been identified, based upon analysis of:

· current visitations throughout the transfer station network · population projections throughout the City, and · available capacity at existing facilities.

Funding was provided in the 2016-17 budget to further investigate and design this facility. The budget was reduced to nil at the March 2017 budget review to facilitate the finalisation of the Business Case. Current Status

· Planning for project has been included in the overall network review which is currently underway.

Major Issues No major issues identified. Financial Performance

Actual Expenditure


BudgetQ2 Revised

BudgetQ1 Revised

BudgetInitial

Budget

($M) ($M) ($M) % ($M) ($M) ($M) ($M)

Waste Strategy Implementation 0.17 0.16 0.01 9.6% 0.17 0.68 0.68 0.52

Recycling Promotions 0.32 0.45 (0.13) (28.1%) 0.45 0.51 0.51 0.56

Total 0.49 0.61 (0.11) (18.4%) 0.62 1.19 1.20 1.08

Actual Expenditure


BudgetQ2 Revised

BudgetQ1 Revised

BudgetInitial

Budget

($M) ($M) ($M) % ($M) ($M) ($M) ($M)

Coomera Transfer Station Design and Construct - - - - - 0.23 1.00 1.00

Total 0.00 0.00 0.00 - - 0.23 1.00 1.00


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 5.6 Community Returns 5.6.1 Income Tax ($0.5 million Favourable) Waste Services is subject to the Local Government Taxation Equivalents Regime (LGTER). As part of this regime, a PAYG Instalment Activity Statement must be prepared and submitted on a monthly basis, with payment of a PAYG instalment. Our current instalment rate issued by our tax assessors is 7.18%. The instalment rate is applied to total revenue generated to derive the amount of PAYG tax payable each month. Taxation expense recorded to date represents the total of PAYG instalments calculated for the first eleven months of the financial year, based upon revenue recognised for the period. At year end, a final taxation return will be prepared, based upon Waste Services taxable income and utilising the company taxation rate of 30% to calculate total taxation payable for the year. Relevant adjustments will be made to record Waste Services annual tax liability to Council. 5.7 Procurement Savings The table below reflects procurement savings that have been identified by the Office of the Chief Procurement Officer (OCPO) on behalf of Waste Services for the months of July 2016 to February 2017.

Table 8 – Procurement Savings identified by OCPO- 2016-17 financial year

Gold Coast Water and Waste’s budget process incorporates a total review of all capital works estimates, addressing actual contract costs. Accordingly, identified procurement savings are captured through this separate review process, rather than being specifically identified as procurement savings in the capital budget review. Procurement savings are recognised through the transfer to the Waste Management Reserve.

Procurement Savings ($'m)

July Aug Sept Oct Nov Dec Jan Feb Total Removed in

Removed in

Removed in March

Total Procureme

Operational 0.03 0.02 0.01 0.01 0.01 0.01 0.01 0.17 0.28 0.05 0.03 0.20 0.28 Recoverable - - - - - - - - - - - - - Capital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.00 0.00 0.01

0.03 0.02 0.01 0.01 0.01 0.02 0.01 0.17 0.29 0.05 0.04 0.20 0.29


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 5.8 Community Service Obligations

In accordance with Sections 23 and 24 of the Local Government Regulation 2012: …The cost of carrying out community service obligations, less any revenue received from performing the obligations must be treated as revenue for the significant business activity. {Section 23} (and) …A community service obligation is an obligation the local government imposes on a business entity to do something that is not in the commercial interests of the business entity to do. Example of a community service obligation – giving a price concession to a particular group of customers, including pensioners, seniors and students {Section 24} Table 9 (below) provides a summary of the Community Service Obligations (CSO) currently provided within Waste Services, together with the annual expenditure budget and actual year-to-date expenses incurred for delivery of those CSOs. Revenue for these CSOs is recognised on a monthly basis throughout the year, with revenue recognised to May of $2.66 million, as reflected in Attachment 1. It is noted that the inclusion of the Disaster Management item relates to waiver of tipping fees for clean-up after the recent severe weather event. As at 31 May 2017, total costs of $0.05 million had been recorded.

Table 9 – Community Service Obligations - 2016-17 financial year

Community Service Obligation

InitialBudget

2016-17 ($M)

RevisedBudget

2016-17 ($M)

YTD Actual Exp ($M) % of Budget Comment

Refuse Charge Donations 0.535 0.535 0.527 98%

Free Tipping Donations 0.464 0.464 0.351 76%

Kerbside Collection 1.100 1.100 1.182 107%

Disaster Management 0.000 - 0.050 0%

Stradbroke Island Waste Disposal 0.383 0.383 0.406 106%

Clean-Up Australia Day 0.019 0.019 0.015 80% Clean Up Australia Day 2016-17 complete.

Carcass Collection 0.059 0.059 0.053 91%

Street and Park Bin Services 0.484 0.344 0.308 90%

3.043 2.903 2.893 100%

Steet and Park Bin collection services tracking in line with forecast.

Rates notices issued twice per annum, application of Donations aligns with rating timeframes.

Kerbside collection 2016-17 program complete.

Stradbroke island waste volumes are higher than forecast.

Charitable organisations level of refuse tipping is lower than expected at this stage of the year.

Carcass collection services tracking in line with forecast.

Clean Up following March / April 2017 severe weather event.



5.9 Future Budgetary Trends

· Assets Under Construction: A review of work in progress (WIP) has been undertaken to ensure that only expenditure that meets accounting standards is recorded. A total of $0.87 million has been identified as non capitalisable and will be expensed during June 2017.

6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND OPERATIONAL PLAN

Not Applicable. 7 GOLD COAST 2018 COMMONWEALTH GAMES IMPACT There are no identified connections to the 2018 Commonwealth Games (GC2018). 8 FUNDING AND RESOURCING REQUIREMENTS Not Applicable. 9 RISK MANAGEMENT The following risk assessment applies to this report: Risk Number Description

Risk No. CO000435

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

10 STATUTORY MATTERS Not Applicable. 11 COUNCIL POLICIES § Debt Policy § Revenue Policy § City of Gold Coast Budget Review Policy 12 DELEGATIONS Not Applicable.


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 13 COORDINATION AND CONSULTATION




Marilyn Hildebrandt Executive Coordinator Directorate Finances

Office of the CEO Yes

14 STAKEHOLDER IMPACTS Not Applicable. 15 TIMING Not Applicable. 16 CONCLUSION Gold Coast Water and Waste (GCWW) Directorate was formed on 1 July 2016, combining Water, Sewerage and Waste services for the City. As a result of the integration, a full review of the financial structures, including systems and processes, is being undertaken throughout this financial year. Waste Services Earnings before Interest and Tax (EBIT) for the period to 31 May 2017 is $4.1 million ahead of forecast. This is due to a combination of above forecast operating revenue and below forecast operating expenses. Gold Coast Water and Waste will monitor performance to ensure its operations are undertaken in the most effective and efficient manner possible to provide value for money to the ratepayers of the City. This is achieved through rigorous internal processes which include detailed review of all projects to ensure only prudent and efficient expenditure is incurred.


ITEM 4 (Continued) WASTE SERVICES FINANCIAL PERFORMANCE AS AT 31 MAY 2017 FN334/252/17(P6) 17 RECOMMENDATION It is recommended that Council resolves as follows: That Council notes the Waste Services Monthly Financial Report for the period ended 31 May 2017.

Author: Authorised by: Karen O’Brien Paul Heaton Manager Business Performance Director Gold Coast Water and Waste 14 June 2017 TRACKS REF: #62286315 COMMITTEE RECOMMENDATION WW17.0719.004 moved Cr Boulton seconded Cr PJ Young That Council notes the Waste Services Monthly Financial Report for the period ended 31 May 2017.

CARRIED UNANIMOUSLY


Attachment 4.1

Detailed Financial Management Report – 31 May 2017

Full Year

Actual Revised Budget

Var Var Initial Budget

Revised Budget

Period ended 31 May 2017 $'000 $'000 $'000 % $'000 $'000RevenueWaste Utility Rate Revenue 71,356 70,300 1,056 1.5% 74,881 76,595Refuse Tipping Fees 7,561 7,036 524 7.5% 7,456 7,456Recycling Revenue 1,020 925 94 10.2% 1,010 1,010Fees and Charges 1,555 1,396 159 11.4% 1,028 1,523Internal Tipping Charges 8,332 8,332 (1) (0.0%) 8,363 9,067Community Service Obligations 2,661 2,661 0 0.0% 3,043 2,903Interest on Outstanding Rates 178 126 52 41.5% 137 137Interest on Investments 474 474 - 0.0% 0 517Grants & Subsidies Revenue 30 0 30 0.0% 0 97Contributions & Donations Revenue 863 774 88 11.4% 845 845Other Operating Income 3 40 (37) (93.6%) 43 43Total Operating Revenue 94,032 92,065 1,967 2.1% 96,806 100,192

Operating ExpensesEmployee Expenses 8,545 8,424 (121) (1.4%) 8,813 9,130Materials 1,896 1,745 (151) (8.6%) 936 1,940Services 11,609 13,557 1,948 14.4% 15,778 17,639Council Corporate SLA 2,320 2,320 (0) (0.0%) 2,531 2,531Waste Collection Payments 24,361 24,741 380 1.5% 25,264 26,713Council Fleet & Plant 7,650 7,582 (68) (0.9%) 8,325 8,321Other Expenditure 1,280 1,264 (16) (1.3%) 1,379 1,379Consultants 820 945 125 13.2% 1,282 1,086Electricity 157 150 (7) (4.5%) 155 155Total Operating Expenses 58,638 60,728 2,090 3.4% 64,464 68,894

Total Operating Profit 35,394 31,337 4,057 12.9% 32,342 31,298

Loss on Sale of Assets - 0 - 0.0% 0 0

EBITDA 35,394 31,337 4,057 12.9% 32,342 31,298

Depreciation 8,091 8,164 73 0.9% 2,243 8,906

EBIT 27,303 23,173 4,130 17.8% 30,099 22,392Interest Expense (QTC Loan) 4,206 4,205 (0) (0.0%) 5,140 4,588Interest Margin Expense 192 192 (0) (0.0%) 209 209Income Tax Equivalents 5,655 6,114 459 7.5% 5,810 6,669NPAT 17,251 12,662 4,589 36.2% 18,940 10,926

Dividend 7,050 7,050 (0) (0.0%) 7,691 7,691

Retained Earnings 10,201 5,612 4,589 81.8% 11,249 3,234

Waste ServicesFinancial Management

Report

Year to Date


ITEM 5 GOLD COAST WATER AND WASTE LEASE OF A PORTION OF THE MERRIMAC WASTE AND RECYCLING CENTRE SITE TO CURRUMBIN WILDLIFE SANCTUARY CM787/790/03/06/03(P1) Refer 2 page attachment 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT The purpose of this report is to seek Council’s endorsement that Gold Coast Water and Waste enter into a partnership with the Currumbin Wildlife Sanctuary for the lease of land adjacent to the Merrimac Waste and Recycling Centre and Sewage Treatment Plant for the purpose of growing eucalypts to feed koalas which are cared for in the Currumbin Wildlife Hospital. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION Background Gold Coast Water and Waste (GCWW) were recently approached by Currumbin Wildlife Sanctuary (CWS) regarding the utilisation of land adjacent to the Merrimac Waste and Recycling Centre (WRC) and Sewage Treatment Plant (STP) for eucalypt plantation activities. The CWS is currently experiencing a surge in the number of koalas requiring treatment in their hospital. Over the previous year the hospital has treated 400 koalas, this compares with 10 years ago where the hospital treated less than 30 koalas per year. In order to feed injured koalas CWS maintain a number of eucalypt plantations. Current Situation

GCWW currently hosts a plantation at the Merrimac Waste and Recycling Centre site, however this as a result of a previous informal arrangement, and existing trees require removal and replanting due to their age. CWS have approached GCWW to replace existing trees and potentially extend the plantation area. The CWS is seeking an additional 20 acres in addition to replanting their current plantation, to allow the planting of an additional 16,000 trees within the next 12 months and 25,000 trees over the next two years. Objectives The following objectives are considered desirable:

1. Support the CWS in its care for injured koalas on the Gold Coast. 2. Ensure Council land is available for development and expansion of existing facilities

and services.


ITEM 5 (Continued) LEASE OF A PORTION OF THE MERRIMAC WASTE AND RECYCLING CENTRE SITE TO CURRUMBIN WILDLIFE SANCTUARY CM787/790/03/06/03(P1)

3. Ensure productive use of existing Council land which is compatible with proximity to the existing WRC and STP.

4. Ensure appropriate agreements for leasing of land adjacent to the existing WRC and STP are in place.

Options

The Merrimac Waste and Recycling Centre is located on Lot 300 SP235726, Boowaggan Road, Merrimac. The site is 138,000m2 which currently includes the following uses:

· Waste and Recycling Centre – approximately 14,100m2 · Parks – approximately 3,000m2 · Natural Areas Management Offices – approximately 2,300m2 · Currumbin Wildlife Sanctuary Hospital Plantation – approximately 79,000m2.

The site map in Appendix A contains more detail. The southern portion of the site is subject to flooding and is within the STP buffer zone (refer to Appendix B).

Identified options for use of the site include:

1. Utilisation for expansion of waste management or sewage treatment purposes; 2. The Currumbin Wildlife Sanctuary expands its existing eucalypt plantation on the site;

or 3. The site is utilised for alternative purposes.

Analysis Option 1 – Utilise for expansion of Waste Management or Sewage Treatment purposes A future expansion of the existing WRC would occur in the northern portion of the site immediately adjacent to the existing WRC (refer Appendix A). Sufficient land exists within the current STP boundary for development envisaged over the next 20 years. Hence while some land is required for expansion of existing facilities, the majority of land is available for alternative uses compatible with proximity to the existing facilities. Option 2 – Expanding the existing CWS eucalypt plantation The CWS plantation has occupied a large portion of the Merrimac Waste and Recycling Centre site for over 20 years without impact on existing operations. The existing and new plantation will make use of irrigation (recycled) water from the adjacent STP. This option provides significant community benefit which is compatible with existing land uses and would also provide the added benefit of additional visual screening of the STP from Robina Parkway. It is considered that there will be no disadvantage to GCWW based on renewed use of the existing tree plantation and extension of the same in the southern portion of the site.


ITEM 5 (Continued) LEASE OF A PORTION OF THE MERRIMAC WASTE AND RECYCLING CENTRE SITE TO CURRUMBIN WILDLIFE SANCTUARY CM787/790/03/06/03(P1) Option 3 – Use of the site for alternative purposes Whilst it is possible that the site could be used for alternative purposes, these options are limited for the following reasons:

· The site is subject to approximately 0.5m of flooding; · The southern access road to the site would require improvements if it were to be

frequently trafficked; · No building or facilities exist (power, water, sewerage); and · As noted previously, it is within the buffer zone for the adjacent STP.

Due to the current access, existing use, proximity to the WRC and STP and flood levels, CWS access and use for a tree plantation is considered to be the most suitable use of the site. It is recommended a lease agreement (under typical community use terms for 15 years) be entered into with CWS for the use of the Merrimac Waste and Recycling Centre site and expansion into the southern portion of the site (north of the STP access road). A 15 year lease is necessary to allow maturity and harvesting of trees prior to decline and potential (under a future lease) replanting. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN This proposal supports to the Corporate Plan in the following area:

o 1.2 We live in balance with nature – We manage quality rural and urban living while looking after the future of the city’s rainforest, bushland, waterways and open space.

This proposal also supports the Nature Conservation Strategy:

o Nature conservation is achieved through partnerships that promote, research, invest in, and coordinate the management of the city’s biodiversity

7 GOLD COAST 2018 COMMONWEALTH GAMES IMPACT Not Applicable. 8 FUNDING AND RESOURCING REQUIREMENTS Budget/Funding Considerations § CWS will be responsible for all site works and agreed rectification upon

expiry/surrender of a lease. § All tree planting/harvesting and ongoing maintenance will be the responsibility of

CWS.


ITEM 5 (Continued) LEASE OF A PORTION OF THE MERRIMAC WASTE AND RECYCLING CENTRE SITE TO CURRUMBIN WILDLIFE SANCTUARY CM787/790/03/06/03(P1) Costs for Capital Works and Service Proposals § Gold Coast Water and Waste will provide recycled water connections and metering at

the boundary to the tree lot. § It is proposed that Council accept a “peppercorn” rent and provide recycled water at

no cost as a Community Service Obligation. 9 RISK MANAGEMENT The potential future expansion of the WRC in the northern portion of the site will be included in the formal lease agreement. CWS is aware of this requirement. 10 STATUTORY MATTERS As Currumbin Wildlife Sanctuary meets the definition of a ‘community organisation’ in the Local Government Regulation at Section 236(1)(b), Council can resolve to authorise the Chief Executive Officer (via the Manager Property Services) to grant a lease subject to terms without recourse to a public tender process. A Recycled Water Management Plan (RWMP) is required by CWS under the Water Supply (Safety and Reliability) Act 2008. 11 COUNCIL POLICIES The City Plan defines a one kilometre buffer zone around the Merrimac Sewage Treatment Plant which restricts development based on assessment of odour impacts for sensitive receptors. The proposed land lease area falls within the current buffer zone (refer Attachment B). Very limited and/or low level development is generally approved within close proximity to a STP, provided performance outcomes can be demonstrated. The majority of land in the current proposed use is further than 500 metres from the inlet works of the STP which is the main odour source. 12 DELEGATIONS The Chief Executive Officer has appropriate delegations to enter into a land lease arrangements. The Director Gold Coast Water and Waste has appropriate delegations to enter into a recycled water supply agreement.


ITEM 5 (Continued) LEASE OF A PORTION OF THE MERRIMAC WASTE AND RECYCLING CENTRE SITE TO CURRUMBIN WILDLIFE SANCTUARY CM787/790/03/06/03(P1) 13 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted

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

Mathew Fraser Gold Coast Water and Waste Yes Brendan Madden Organisational Services Yes Ron Jacobs Community Services Yes, provided the plantation

only extends as far as the STP access road.

Mairead Lenihan Gold Coast Water and Waste Yes Kevin Quantick Gold Coast Water and Waste Yes Right to Information (RTI) and Information Privacy (IP) Legislation 2009 Not Applicable. 14 STAKEHOLDER IMPACTS External / community stakeholder Impacts § Beneficial impacts will accrue to the CWS as it expands the area utilised on the site for

the eucalypt plantation. § Detrimental impacts on external stakeholders are not applicable or foreseen at this

point in the project. Internal (Organisational) Stakeholder Impacts § Impacts upon the Central Park project will be minimised by limiting the extent of the

plantation to the STP access road.

15 TIMING This proposal will come into effect as soon as lease terms are agreed upon with Currumbin Wildlife Sanctuary. It will take two to three years before new eucalypts are large enough to harvest branches from. 16 CONCLUSION The southern portion of the Merrimac Waste and Recycling Centre site has a number of limitations including access, flood levels, existing use and inclusion within the buffer zone to the Merrimac Sewage Treatment Plant. It is considered that the most suitable and productive use of the site is to allow the Currumbin Wildlife Sanctuary to renew and expand the existing eucalypt plantation. It is proposed a formal lease agreement of 15 years be entered into with Currumbin Wildlife Sanctuary.


ITEM 5 (Continued) LEASE OF A PORTION OF THE MERRIMAC WASTE AND RECYCLING CENTRE SITE TO CURRUMBIN WILDLIFE SANCTUARY CM787/790/03/06/03(P1) 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That the Chief Executive Officer (via Manager Property Services) be delegated the

power to finalise negotiations with Currumbin Wildlife Sanctuary for the grant of a land lease on terms satisfactory to the Chief Executive Officer to facilitate the koala eucalypt plantation outlined in this report.

2 That Council notes its support of Currumbin Wildlife Sanctuary and this project is an

exercise of its beneficial enterprise powers pursuant to s.40 of the Local Government Act 2009.

Author: Authorised by: Joshua Evans Executive Coordinator Environment and Catchment Management

Paul Heaton Director Gold Coast Water and Waste

22 June 2017 TRACKS REF: #62281696

COMMITTEE RECOMMENDATION WW17.0719.005 moved Cr PJ Young seconded Cr O’Neill 1 That the Chief Executive Officer (via Manager Property Services) be delegated

the power to finalise negotiations with Currumbin Wildlife Sanctuary for the grant of a land lease on terms satisfactory to the Chief Executive Officer to facilitate the koala eucalypt plantation outlined in this report.

2 That Council notes its support of Currumbin Wildlife Sanctuary and this project

is an exercise of its beneficial enterprise powers pursuant to s.40 of the Local Government Act 2009.

CARRIED UNANIMOUSLY


Attachment 5.1

Appendix A – Merrimac Waste and Recycle Centre Site


Attachment 5.2

Appendix B – Merrimac Sewage Treatment Plant Buffer Zone


ITEM 6 GOLD COAST WATER AND WASTE LOGAN-ALBERT CATCHMENT ACTION PLAN 2017-2020 WF16/22/-(P1) Refer 35 page attachment 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT To obtain Council in principle support of the Logan-Albert Catchment Action Plan 2017-2020. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION

Background

The Resilient Rivers Initiative is a collaboration between the South East Queensland Council of Mayors (SEQ CoM), Queensland Government, Seqwater, Healthy Land and Water, SEQ Catchments, Unitywater and Queensland Urban Utilities with the aim of improving the health of SEQ’s waterways. The Resilient Rivers Initiative provides a coordinated approach to catchment management to ensure economic, social and environmental health of waterways across state and local government agencies, water utilities, regional partners and the community.

A series of Catchment Action Plans (CAPs) which deliver a coordinated program of works will be developed to achieve the goals of the Resilient Rivers Initiative. The Logan Albert Catchment Action Plan (2017-2020) has been produced as part of this program.

Current Situation

The Logan-Albert CAP was completed in January by a project team consisting of representatives from City of Gold Coast, Logan City Council, Redland City Council, Scenic Rim Regional Council, Seqwater, Queensland Departments of Natural Resources and Mines and Environment and Heritage Protection, Healthy land and Water and Queensland Urban Utilities.

The plan provides information on the historical, geological and planning background of the catchment and proposes a range of on-ground actions along with policy and planning actions across the Logan Albert catchment. Attachment 1 outlines the proposed Action Plan and details potential impacts on City of Gold Coast.


ITEM 6 (Continued) LOGAN-ALBERT CATCHMENT ACTION PLAN 2017-2020 WF16/22/-(P1)

Options

The Logan-Albert CAP has a number of on-ground, policy and planning actions (as detailed in Attachment 1) which benefit the catchment, and the City. The majority of the actions proposed within the City’s boundaries do not constitute additional activities for Council, rather they are a continuation of on-going priorities. As such the Logan-Albert CAP fits within the City’s existing plans and provides external validation and support of existing programs.

There are a number of options for the City’s involvement in the Logan-Albert Catchment Action Plan 2017-2020, as follows:

· Do nothing – do not provide any support or funding of the Logan-Albert CAP. · Endorse and provide funding to SEQ CoM to support the implementation of the

Logan-Albert CAP. · Support in principle and continue to deliver already approved actions within the

Logan-Albert CAP that are of benefit to the City.

Analysis

Do Nothing

Implementation of the Logan-Albert CAP will improve the health of receiving waters of Southern Moreton Bay and the northern Broadwater. The Logan-Albert CAP not only provides regional validation, support and awareness of the proactive management actions being undertaken by the City as part of the City’s Albert River Catchment Rehabilitation Program (Investment Program Business Performance Date 13.1.17 iSpot 59029623. As such, the “do nothing” option is of not advantageous to the City.

Full Support and Funding Provided for Works Outside the Gold Coast

Fully endorsing the Logan-Albert CAP and providing funding to support its implementation would provide a strong regional commitment by the City to coordinated catchment management through the SEQ CoM Resilient Rivers framework. It is not anticipated however, that this would provide any significant advantage to the City, beyond what has already committed to under the Albert River Catchment Rehabilitation Program. It is noted that requests for both endorsement and funding of the Logan-Albert CAP have been made by the SEQ CoM.

In-principle Support Without Additional Funding

Supporting the Logan-Albert CAP in principle, but without funding, provides an active demonstration that the City is committed to regional collaboration for catchment management under the CoM Resilient Rivers framework. However this does not commit the City to investing in catchment actions outside of the Gold Coast local government area. Furthermore, the Logan-Albert CAP actions identified within the Gold Coast local government area are in line with the City’s Albert River Catchment Rehabilitation Program. Therefore, this approach enables the City to contribute to the Resilient Rivers Logan-Albert CAP through provision of in-kind support and direct funding of actions that are a priority for the City’s own catchment management program.


ITEM 6 (Continued) LOGAN-ALBERT CATCHMENT ACTION PLAN 2017-2020 WF16/22/-(P1)

Recommendation

It is proposed that the Logan-Albert Catchment Action Plan 2017-2020 be supported in principle by Council. The acceptance of the document would enable the City to benefit from being part of a regional strategy whilst continuing with business as usual.

6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND OPERATIONAL PLAN

The recommended option aligns with Corporate Plan 2020:

o 1.2 We live in balance with nature- We manage quality rural and urban living while looking after the future of the city’s rainforest, bushland, waterways and open space

7 GOLD COAST 2018 COMMONWEALTH GAMES IMPACT Not Applicable. 8 FUNDING AND RESOURCING REQUIREMENTS No additional funding is sought at this stage. Should further analysis of the Luscombe Weir determine that removal is the most appropriate course of action (as discussed within the CAP), separate consideration will be sought from Council for this action at this stage. Costs for Capital Works and Service Proposals Not Applicable. People and Culture Not Applicable. 9 RISK MANAGEMENT The following Corporate Risk has been identified. It is likely that this Corporate Risk will be reduced/mitigated by the proposed in-principle support of the Logan-Albert CAP.

Risk Number

Risk Name Control Number

Control Name

CO000426 Federal and State Government funding not optimised resulting in the inability to provide the necessary infrastructure and services.

CN001665 List of priority projects to advocate to the State and Federal Government via the Council of Mayors (#4276715 2014-2025) - milestone checks (annually).


ITEM 6 (Continued) LOGAN-ALBERT CATCHMENT ACTION PLAN 2017-2020 WF16/22/-(P1) 10 STATUTORY MATTERS Not Applicable. 11 COUNCIL POLICIES Not Applicable. 12 DELEGATIONS Not Applicable. 13 COORDINATION & CONSULTATION Name and/or Title of the Stakeholder Consulted



Darren Ford- Coordinator Lakes and Waterways

City Infrastructure Yes

Paul Cockbain – Natural Areas Restoration Officer

Community Services Yes

Iain Jamieson – Senior Pest Management Specialist

Community Services Yes

Motiul Md Kabir – Senior Hydraulic Engineer

Planning and Environment Yes

Sharon Dyer – Environmental Planner

Planning and Environment Yes

14 STAKEHOLDER IMPACTS Not Applicable. 15 TIMING Not Applicable. 16 CONCLUSION The South East Queensland Council of Mayors has, via the Resilient River Initiative, produced the Logan-Albert Catchment Action Plan (2017-2020). This document provides current and historical information on the Logan and Albert River catchment. The document also provides information on current issues and proposes action items to ensure economic, social and environmental health of the Logan-Albert catchment and receiving waters. Providing in-principal support of this plan (without funding) would provide benefits to the City through external validation and support for on-going programs, which are currently in progress within the City, and an impetus for actions by external parties that would benefit Gold Coast waterways and the Broadwater.


ITEM 6 (Continued) LOGAN-ALBERT CATCHMENT ACTION PLAN 2017-2020 WF16/22/-(P1) 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 Council provides in-principle support for the delivery of the Logan-Albert Catchment

Action Plan (2017-2020). 2 That no additional funds, outside of those outlined in the City’s approved Albert River

Catchment Rehabilitation Program, are provided via the Resilient Rivers Initiative for the delivery of actions contained in the Logan-Albert Catchment Action Plan.

Author: Authorised by: Roslynne O’Connell Paul Heaton Catchment Management Officer Director Gold Coast Water and Waste 12 April 2017 TRACKS REF: 61865030 COMMITTEE RECOMMENDATION WW17.0719.006 moved Cr PJ Young seconded Cr Tozer 1 Council provides in-principle support for the delivery of the Logan-Albert

Catchment Action Plan (2017-2020).

2 That no additional funds, outside of those outlined in the City’s approved Albert River Catchment Rehabilitation Program, are provided via the Resilient Rivers Initiative for the delivery of actions contained in the Logan-Albert Catchment Action Plan.

CARRIED


Attachment 6.1 ATTACHMENT 1: Logan-Albert Catchment Plan on-ground actions impacts Logan-Albert on-ground actions Regional

level measures of

success

City of Gold Coast impact

Improve capacity to implement and ensure compliance of existing requirements for erosion and sediment control on construction sites by establishing a targeted 10 year program for the high growth areas.

Four on-ground works completed

Six industry best management practice projects implemented

While there has been no City areas identified as part of this action it may potentially affect the Yatala industrial areas. This action would also align with the Total Water Cycle Management Plan’s goals and objectives.

Within the context of a coordinated engagement program, work with landholders to protect and maintain riparian areas of high value and enhance those with a high risk in the priority investment areas.

Planned under the Albert River Catchment Rehabilitation Program (Investment Program Business Performance Date 13.1.17 iSpot 59029623). Expected to be completed on a rolling basis between 2017-2022.

Kooralbyn, Rathdowney and broader Canungra water supply offtake to reduce contaminants by exclusion of stock, waste management and riparian protection.

No impact, proposed action outside of the Gold Coast.

Develop a continuous Albert River riparian corridor between Cedar Creek and the Stanmore Road Bridge through a targeted program of weed management, riparian planting and landowner engagement, with an initial focus on key Council and State assets.

Planned under the Albert River Catchment Rehabilitation Program (Investment Program Business Performance Date 13.1.17 iSpot 59029623). Expected to be completed on a rolling basis between 2017-2022.

Prepare a coordinated and strategic weed and pest control plan that includes: a sustained funding model; improved weed and pest mapping and data collection to determine high priority sites; coordinated biocontrol releases; and community led actions.

Currently delivered in City areas by Pest Management. The City’s program is explicitly mentioned in the associated technical document.

Remove Luscombe Weir to improve fisheries outcomes.

Feasibility studies are currently underway as part of the Albert River Catchment Rehabilitation Program (Investment Program Business Performance Date 13.1.17 iSpot 59029623).


Logan-Albert on-ground actions Regional level

measures of success


Quantify the effect of sediment on fisheries and recreation values in the Logan River estuary to determine quantity of investment required and provide a strong evidence base for investment.

Minimal impact. CSIRO is the lead agency in the Logan estuary with a long established monitoring program. It currently manages the area under the Terrestrial Ecosystem Research Network (TERN) program (http://www.supersites.net.au/supersites/seqp). It would be expected that any sedimentation quantification would be conducted by this agency. Outcomes from this quantification would be expected to flow out of an update of the CAP post 2020.

Investigate the establishment of Soil Conservation Project Areas under the Soil Conservation Act 1986 for high risk erosion areas.


Encourage land use in the mid and upper catchment to be matched to land use suitability by mapping Agricultural Land Use Class C (pasture) and D (not suitable for agriculture).


Establish a specific mechanism to strengthen existing institutional arrangements to ensure developments within water supply buffer areas comply with the outcomes and measures within the Seqwater Development Guidelines: Development Guidelines for Water Quality Management in Drinking Water Catchments 2012.

The State Government requires Local Government planning schemes reflect these guidelines. This has been adopted as part of the City Plan under the Water Resource Area overlay code.

Clarify jurisdiction, thresholds and compliance performance for environmental relevant activities associated with animal-based farming and industry within the Rathdowney, Kooralbyn, Canungra and Cedar Grove WTP offtake zones


Investigate options to minimise the impacts of the disposal of spent chicken farm litter on horticultural and turf farms within the


http://www.tern.org.au/

http://www.tern.org.au/

http://www.supersites.net.au/supersites/seqp


Logan-Albert on-ground actions Regional level

measures of success


Rathdowney, Kooralbyn and Cedar Grove WTP offtake zones.

Prepare a recreation management plan for the Albert River catchment, which includes investigating options to improve management of camping sites upstream of the Canungra water supply offtake.

Potential impact. If a whole of catchment approach is taken (rather than a focus on Canungra) this will include City areas. However, it would be assumed that the cost of such a plan would be minimal. If such a catchment wide plan were to be prepared it would be expected that the delivery agency would be Healthy Land and Water (previously Healthy Waterways and SEQ Catchments).

Improve landholder management of the riparian zone by clarifying the rights and responsibilities of landholders.

Planned under the Albert River Catchment Rehabilitation Program (Investment Program Business Performance Date 13.1.17 iSpot 59029623). A number of educational brochures are planned for completion in 2017-2018 which will assist in addressing this action.

Consider including the core bushland and linkages in the middle to upper catchment as Matters of Local Significance within the new Scenic Rim Regional Council Planning Scheme.


Logan Water Business and Logan Water Infrastructure Branches will identify opportunities to incorporate water quality offsets schemes into their effluent management strategy in order to perform bank rehabilitation within the Logan-Albert catchment.



Attachment 6.2 ATTACHMENT 2: Logan Albert Catchment Action Plan 2017-2020


ITEM 7 GOLD COAST WATER AND WASTE SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) 1 BASIS FOR CONFIDENTIALITY 1.1 I recommend that this report be considered in Closed Session pursuant to section

275 (1) of the Local Government Regulation 2012 for the reason that the matter involves

(h) other business for which a public discussion would be likely to prejudice the

interests of the local government or someone else, or enable a person to gain a financial advantage.

1.2 I recommend that the report be deemed non-confidential except for those parts

deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT This report provides Council with an update of Scientific Services’ progress against the implementation plan to transition the business to full contestability. 4 PREVIOUS RESOLUTIONS Committee Recommendation WW16.0720.005 Resolution G16.0726.022 1 That the report be deemed a confidential document and be treated as such in

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

2 That Council notes progress on the Implementation Plan to transition Scientific Services business unit to a contestable model.

3 That the Director Gold Coast Water report back to Council in July 2017 on progress associated with the Scientific Services Implementation Plan.

Committee Recommendation CIW15.0903.001 Resolution G15.0911.009 1 That the report/attachment be deemed a confidential document and be treated as

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

2 That Council endorse the Implementation Plan contained in Attachment 10.1 to transition Scientific Services business unit to a contestable model.

739th Council Meeting 25 July 2017 103 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 7 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) 3 That the Director Gold Coast Water report back to Council in May 2016 on progress

associated with the proposed implementation plan. Committee Recommendation EWT14.0904.007 Resolution G14.0916.013 1 That the report be deemed a confidential document and be treated as such in


2 That Council notes the implementation plan to transition the business strategy of the Scientific Services business unit from status quo to a contestable model over a three to four year time frame.

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

Committee Recommendation WS14.0528.007 Resolution G14.0603.017 1 That the report be deemed a confidential document and be treated as such in


2 Endorse the recommendation to transition the business strategy of the Scientific Services business unit from status quo to a contestable model. Gold Coast Water to provide an additional report on the strategy to achieve that, within three months.

3 That the Director GCW report back to Council in July 2015 on progress associated with the proposed implementation plan.

5 DISCUSSION 5.1 BACKGROUND Scientific Services is a section within the Gold Coast Water and Waste Directorate that provides laboratory services to Council and external customers. The services provided to these customers include:

· sample collection · laboratory testing and analysis; and · reporting of test results.

Historically, Scientific Services has operated according to an annual budget aligned to workloads defined by the activities of the wider Gold Coast Water and Waste Directorate as its principal customer.

739th Council Meeting 25 July 2017 104 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 7 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) In 2014, the Scientific Services business model and performance was independently reviewed. The review results indicated that the Council of the City of Gold Coast (the City) needed to modify the operation of Scientific Services to improve the financial performance of the business. Based on the review findings and associated drivers, Council resolved (G14.0603.017) to transition Scientific Services to full contestability. Recommendation EWT14.0904.007 proposed an Implementation Plan to achieve contestability over a three-year period. The Implementation Plan included six monthly progress reporting to Council. In addition to providing Council with visibility of progress against the implementation plan, this reporting allows periodic assessment of laboratory service delivery options with consideration of current and emerging market and business conditions. 5.2 CURRENT SITUATION Progress against the contestability Implementation Plan and related recent achievements can be grouped into the following categories:

· Revenue growth · Organisational efficiencies · Operational efficiencies · Service scope enhancement.

5.2.1 Revenue Growth An objective within Scientific Services’ Business Plan is continued revenue growth. The approaches that have been applied to enhance revenue during the period include:

· increasing and upselling services to existing customers · gaining new external customers · developing new tests to broaden Scientific Services’ service options; and · performing tests that were previously subcontracted to other laboratories, thereby

gaining “lost” revenue. The budget revenue figure for 2016-17 for external testing for Scientific Services was

The majority of the external sales are from testing services provided to businesses located on the Gold Coast, with approximately of the external revenue generated from cash sales from individual Gold Coast residents and businesses requesting one-off testing for a wide range of applications. A further in revenue was generated from testing services provided to Gold Coast Water and Waste and City of Gold Coast Council services. This internal revenue was

the budget value A significant portion of this additional revenue was the result of preparations for the Commonwealth Games. The overall Scientific Services 2016-17 revenue of was budget

739th Council Meeting 25 July 2017 105 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 7 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) The table below shows a comparison of the financial performance from the FY14 base year to FY17. In FY14, internal revenue accounted for of the total and external revenue for

. In FY17, internal revenue accounted for of the total revenue and internal revenue accounted for .

Financial Year Internal Revenue External Revenue Total Revenue 2014 2017

5.2.2 Organisational efficiencies There are currently full-time equivalent positions allocated to Scientific Services. Officers in these positons operate in the Scientific Services laboratory which is located in the Smart Water Research Centre building on the Griffith University, Gold Coast campus. Scientific Services have completed staffing changes designed to improve the quality and efficiency of laboratory operations. The changes focused on supporting and developing the core revenue-generating functions in the chemistry and microbiology sections. Three administrative non-revenue generating roles were redesigned into laboratory-based revenue generating roles providing testing services. A direct labour cost saving of approximately

was achieved as a result of these changes

These changes also supported improvements in testing data integrity processes to ensure that high quality and reliable data is provided for drinking water, non-drinking water, wastewater, and environmental water testing. The new staff that have been recruited into the business as part of these changes have brought new skills to the business. They have also assisted with widening the business’ product range and generating external revenue. Overall, these changes have enabled Scientific Services to progress towards a contestable position when competing with commercial laboratories to win additional revenue. It is anticipated that further changes to increase the efficiency of the operations will be implemented in the future as part of continuous improvement. 5.2.3 Operational efficiencies The Implementation Plan included a review of Scientific Services’ operations to identify those parts of the business that could be performed more efficiently. One area identified to gain operational savings was the replacement of the unsupported Laboratory Information Management System (LIMS) software package that was approximately 20 years old, with a modern and supported cloud-based LIMS.

739th Council Meeting 25 July 2017 106 Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 7 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) Following a commercial tender process, the propriety solution was purchased. Implementation of the new software system was completed in March 2017, with associated data transition and processing tasks continuing into June 2017. QLIMS is now being used by Scientific Services to streamline reporting processes to achieve operational efficiencies and savings from reducing the number of labour hours and unnecessary manual steps in the old reporting process. Annual savings of approximately have been targeted. Capabilities and benefits that the transition to has brought to Scientific Services include:

· Digitising previously manual-based processes, with the ability to directly export laboratory test data from analytical machines to . This supersedes laborious manual transfer of data.

· Improving data integrity through eliminating human errors, such as transcription errors and inefficiencies from proofreading, that was inherent in the old LIMS processes.

· Improving customer experience, with customers now having the ability to access their data directly from on demand via an internet portal.

· Allowing more efficient access and sharing of data across Council and externally (with appropriate and required levels of security in place).

· Enabling greater adaptability of Scientific Services to changes in legislation or testing standards more easily and more rapidly.

Another area where operational efficiencies have progressed is in testing instrumentation, with the following high-volume analytical instruments purchased:

· a PerkinElmer Inductively Coupled Plasma Spectrometer (ICP) used to detect cationic species (metals); and

· a Lachat Series 800 Flow Injection Analyser (FIA) used to detect anionic species. Both machines are state-of-the-art, and offer operational advantages in being able to run 24/7 using robotic sample input with much faster turnaround rates. The FIA will also be used to offer the detection of cyanide as a new test. The ICP will be safer than the older equipment it is replacing, which used an argon gas torch operating at over 1000 °C. The new ICP operates at much lower temperatures. The ICP will offer new testing for uranium and tin in addition to a range of other metals. The new ICP also uses fewer consumables and so will cheaper to run than the machine it replaces. 5.2.4 Service scope enhancement Scientific Services ongoing service scope enhancement has recently focused on preparations for the Commonwealth Games (GC2018) and expanding the test suite offered to customers.


ITEM 7 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) Scientific Services has been actively involved in developing test methods for use in water screening for GC2018. Across the period of the GC2018, Scientific Services will provide high-precision high-volume testing. This will be performed with a same-day turnaround time from sampling to result notification to Gold Coast Water and Waste to external organisations. Testing must be performed with 100% accuracy and at zero failure rates. Scientific Services has developed an advanced analytical chemical water quality suite to monitor potable, waste, and recreational waters for Gold Coast Water and Waste during GC2018. Scientific Services is supplying sampling services to 18 designated potable water sites supplied by Gold Coast Water and Waste located throughout the main GC2018 tourist areas. In addition, an emergency and out of hours sampling service will also be available throughout the GC2018 period. Scientific Services are now accredited for Cryptosporidium and Giardia analysis, and are one of only six laboratories in Australia, and the only one in Queensland, that can perform this test. This accreditation is essential to investigate public health incidents regarding the reporting of these parasites in drinking water supplies, source waters, and swimming pools. A reduction in turnaround times of 30% for Pseudomonas aeruginosa and heterotrophic colony counts was achieved by developing a new method, allowing for more samples to be produced quicker, and expanding the operational window to carry out these tests. Another new test in the process of being brought to market is Legionella in water samples. The target market will be to help Gold Coast healthcare facilities (e.g. aged care) meet the recently introduced state and national guidelines for Legionella. Other potential customers will be in monitoring of spa and swimming pools waters and air-conditioning cooling towers. The chemistry team is investigating technology developed at Griffith University in the rapid detection of biochemical oxygen demand. This is a water quality test that usually takes five days to complete. The new method uses an electrochemical technique that claims to require only around an hour to perform. This is being developed as part of a testing suite for Direct Toxicity that will be useful for assessing environmental impacts of waste waters in Gold Coast rivers and oceans. Griffith University can monitor species for specific toxicological effects. In addition, both Griffith University and the University of Queensland have developed methods that can perform extreme low (nanogram)-level quantification of chemical indicators for assessment of water samples. The microbiology section is evaluating the real-time quantitative polymerase chain reaction (qPCR) technique for potable and environmental water sample analysis. qPCR uses DNA and gene specific probes labelled with a fluorescent marker to amplify the DNA molecules of an organism of interest (e.g. E. coli). This can then quantify the bacteria in a short period of time. As the DNA amplifies, the fluorescent marker shows the progress of the amplification in real time. This method promises to quantify bacteria on the same day as sample delivery, surpassing traditional culturing techniques that require a minimum of 22 hours. It is hoped that qPCR will provide an early warning of public health risk while conventional culturing confirms the result.


ITEM 7 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) The microbiology section is also evaluating adenosine triphosphate (ATP) probes as a rapid method to measure actively growing microorganisms in water. The probes may be a useful diagnostic tool as a general water quality indicator, in that they will detect all viable organisms, including bacteria, yeasts, moulds, protozoa, and algae. These probes may provide an early warning of a potential water quality or operational issues for Gold Coast Water and Waste arising from factors such as biofilms containing bacteria and protozoa, which can shield pathogens from the chlorine used to disinfect drinking water systems. If successful, ATP probes may replace the existing heterotrophic plate count tests, which currently take 48 hours. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Corporate Plan - What we want to see by 2020:

2.1 Our city is innovative and grows successful businesses: We have knowledge-based, start-up and entrepreneurial businesses.

7 GOLD COAST 2018 COMMONWEALTH GAMES IMPACT Scientific Services has been actively involved in preparing sampling and testing arrangements to monitor potable, sewage, and recreational waters for GC2018. Across the stand-up to stand-down periods of GC2018, Scientific Services will provide high-precision high-volume testing with a same-day turnaround time. 8 FUNDING AND RESOURCING REQUIREMENTS Budget/Funding Considerations Any additional funding required associated with the contestability Implementation Plan will be met from existing budgets and savings from improved business efficiencies within Scientific Services. People and Culture Scientific Services have completed staffing changes designed to improve the quality and efficiency of laboratory operations. 9 RISK MANAGEMENT There are no direct links to currently identified Corporate or Directorate risks. 10 STATUTORY MATTERS Not Applicable. 11 COUNCIL POLICIES Not Applicable.

739th Council Meeting 25 July 2017 109Gold Coast Water and Waste Committee Meeting 19 July 2017 Adopted Report ITEM 7 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) 12 DELEGATIONS Not Applicable. 13 COORDINATION & CONSULTATION




Chris Owen, Acting Manager Customer Engagement

Gold Coast Water and Waste Yes

14 STAKEHOLDER IMPACTS External/community stakeholder impacts A number of external Scientific Services customers were contacted as part of the initial review. No immediate impact on these customers is expected as a result of this plan. Internal (organisational) stakeholder impacts Internal communication/change management has occurred and will continue to occur with Scientific Services staff as part of this structure review. 15 TIMING The milestones achieved are in accordance with the milestones outlined in the Scientific Services contestability Implementation Plan. The focus of activities over the next 12 months will be to consolidate and embed the gains from the existing initiatives, focusing on service provision throughout GC2018. A further update will be provided at the end of the 2017-18 financial year. 16 CONCLUSIONS The business strategy and associated Implementation Plan towards Scientific Services being a contestable business has progressed. The key achievements in the reporting period include:

· Revenue growth has been achieved via existing and new customers and new service offerings.

· Organisational efficiencies have continued via staffing changes that have focused on moving positions to revenue generating functions.

· Operational efficiencies and improved customer service has been implemented via the implementation of and exchanging older testing instruments with high-volume analytical instruments.

· Service scope enhancement has been achieved through preparations for GC2018 and additional test suites available to customers.


ITEM 7 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That the report be deemed non-confidential except for those parts deemed by the Chief

Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.


3 That the Director Gold Coast Water and Waste report back to Council in July 2018 on progress associated with the Scientific Services Implementation Plan.

Author: Authorised by: Tim Beales Paul Heaton Executive Coordinator for Laboratory Commercialisation

Director Gold Coast Water and Waste

6 July 2017 6 July 2017 TRACKS REF: #62652546 COMMITTEE RECOMMENDATION WW17.0719.007 moved Cr PJ Young seconded Cr O’Neill 1 That the report be deemed non-confidential except for those parts deemed by the

Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.


3 That the Director Gold Coast Water and Waste report back to Council in July 2018 on progress associated with the Scientific Services Implementation Plan.

CARRIED UNANIMOUSLY

There being no further business the meeting closed at 2.18pm.


These Pages

Numbered 1 to 1111

Constitute The Adopted Report Of The Meeting

Of The Gold Coast Water and Waste Committee

Held Wednesday 19 July 2017

gold coast water and waste committee · 2019. 6. 23. · gold coast water and waste committee...

Documents