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766 Adopted Report

of the

Water and Waste Committee Meeting

held on

Tuesday 4 December 2018 at

10 am

City of Gold Coast Council Chambers 135 Bundall Road Surfers Paradise

766th Council Meeting 7 December 2018 2 Water And Waste Committee Meeting 4 December 2018 Adopted Report

Index 766 Adopted Report

Water and Waste Committee Meeting Tuesday 4 December 2018

PRESENTATION: Future of Waste

Item Direct. File Page Subject

1

WW CM787/788/06/01(P1) 11 Water and Waste Committee Action List and Forward Planning Schedule

2

WW WSS1125/1227/02(P1) 14 Water and Waste Annual Register of Council Directions

3

WW WSS1125/1229/(P1) 17 Scientific Services Delivery Model – Implementation Plan

General Business

KEY: OCEO - Office of the Chief Executive Officer OCOO Office of the Chief Operating Officer EPE - Economy, Planning and Environment OS - Organisational Services LC - Lifestyle and Community TI - Transport and Infrastructure WW - Water and Waste

766th Council Meeting 7 December 2018 3 Water And Waste Committee Meeting 4 December 2018 Adopted Report ADOPTION BY COUNCIL 7 December 2018 RESOLUTION G18.1207.013 moved Cr Boulton seconded Cr O’Neill That the Report of the Water & Waste Committee’s Recommendations of Tuesday 4 December 2018, numbered WW18.1204.001 to WW18.1204.003, be adopted.

CARRIED UNANIMOUSLY

ATTENDANCE Cr K Boulton (Chairperson) Cr R La Castra Cr PJ Young Cr G Tozer Cr PC Young Cr W Owen-Jones Visitor Mr P Heaton Director Water and Waste APOLOGY / LEAVE OF ABSENCE PROCEDURAL MOTION moved Cr PJ Young seconded Cr PC Young That the apology of Cr P Taylor be noted. CARRIED PRESENTATIONS Future of Waste – Paul Heaton – Director Water and Waste

766th Council Meeting 7 December 2018 11 Water And Waste Committee Meeting 4 December 2018 Adopted Report ITEM 1 WATER AND WASTE WATER AND WASTE COMMITTEE ACTION LIST AND FORWARD PLANNING SCHEDULE CM787/788/06/01(P1)

Proposed Date Subject Action Officers

Action

January 2019 Improved Control and Access to Waste and Recycling Centres Recommendation: WW18.0125.008

Mairead Lenihan/ Chris Owen

2 That Council notes a further report will be provided in late 2018 on the preferred method for control of access and use at waste and recycling facilities.

January 2019 Waste Disposal Levy Mitigation Strategy

Josh Evans

January 2019 Catchment Management Community Partnerships Framework Recommendation: WW17.1205.003

Joshua Evans / Kathy Baker

That Council notes the framework will be developed in conjunction with and align to the current Water Strategy (under development) which recognises Community partnerships as a key objective.

January 2019 Local Government Platform Stage Three Recommendation: WW18.0320.005

Karen O’Brien 2 That Council note that a decision on LGP Stage Three is deferred until February 2019 due to items outlined in this report.

3 That Council note that a Business Case will be bought back to Water and Waste Committee in late 2018 on the preferred approach for LGP Stage Three.

January 2019 Introduction of Commercial Food Waste Pilot Recommendation: WW18.0320.003


That a report brought back to Council on the outcome of the trial.

January 2019 2017 Customer Satisfaction Survey Recommendation: WW18.0823.006

Carley Freeman/ Chris Owen

That the Director prepare a report for the public related to the customer satisfaction survey.

766th Council Meeting 7 December 2018 12 Water And Waste Committee Meeting 4 December 2018 Adopted Report ITEM 1 (Continued) WATER AND WASTE WATER AND WASTE COMMITTEE ACTION LIST AND FORWARD PLANNING SCHEDULE CM787/788/06/01(P1)

Proposed Date Subject Action Officers

Action

January 2019 Smart Metering of Community Title Scheme (units and complexes).

Scott Emmonds/ Chris Owen

January 2019

Implementing a City Wide Food Organics, Green Organics (FOGO) service


That a report addressing FOGO recovery including anticipated implementation as part of Solid Waste Strategy 2024.

February 2019 Project update Long Term Recycled Water Release Plan

Mark Herrmann/ Brett Lawrence

Approx. March 2019

Customer Hardship and Assistance Programs Recommendation: WW18.0823.005

Chris Owen That the Director Water and Waste investigate, along with the rest of Council, the potential framework for improving Customer Hardship and Assistance Programs.

Approx. Feb/March 2019

Water and Sewerage Asset Management Recommendation: WW18.0823.007

Marc Avery/ Karen O’Brien

That a report regarding private Water and Sewerage Asset Management be prepared and returned to Water and Waste committee for review.

766th Council Meeting 7 December 2018 13 Water And Waste Committee Meeting 4 December 2018 Adopted Report ITEM 1 (Continued) WATER AND WASTE WATER AND WASTE COMMITTEE ACTION LIST AND FORWARD PLANNING SCHEDULE CM787/788/06/01(P1) RECOMMENDATION It is recommended that Council resolve as follows: That the Action List and Forward Planning Schedule for Water and Waste Committee be noted. Authorised by: Paul Heaton iSPOT#37409759 Director Water and Waste COMMITTEE RECOMMENDATION WW18.1204.001 moved Cr Tozer seconded Cr PC Young That the Action List and Forward Planning Schedule for Water and Waste Committee be noted.

CARRIED UNANIMOUSLY

766th Council Meeting 7 December 2018 14 Water And Waste Committee Meeting 4 December 2018 Adopted Report ITEM 2 WATER AND WASTE 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 2017-18

2018-19 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):

Nil Nil to date

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: WW16.12.05.003 Resolution: G16.1207.018

766th Council Meeting 7 December 2018 15 Water And Waste Committee Meeting 4 December 2018 Adopted Report ITEM 2 (Continued) WATER AND WASTE ANNUAL REGISTER OF COUNCIL DIRECTIONS WSS1125/1227/02(P1) RECOMMENDATION It is recommended that Council resolve as follows: That the Water and Waste Annual Register of Council Directions be noted. Authorised by: Paul Heaton iSPOT#43956542 Director Water and Waste COMMITTEE RECOMMENDATION WW18.1204.002 moved Cr Tozer seconded Cr PC Young That the Water and Waste Annual Register of Council Directions be noted.

CARRIED UNANIMOUSLY


ITEM 3 WATER AND WASTE SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) Refer 45 page attachment 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/attachment 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 initiated in 2015 to transition the business to full contestability. 4 PREVIOUS RESOLUTIONS 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.

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 and Waste report back to Council in July 2018 on progress associated with the Scientific Services Implementation Plan.

CARRIED UNANIMOUSLY 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.


ITEM 3 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) 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 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. 1 That Council endorse the Implementation Plan contained in Attachment 10.1 to

transition Scientific Services business unit to a contestable model. 2 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. Base budget reviews (Item 32, 20 November 2012) Council requested that “Potential contracting out of NATA (Laboratory Services) be considered”. 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.


ITEM 3 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) 5 DISCUSSION Background Scientific Services is a section within the Water and Waste Directorate that provides the following services to both Council and external customers:

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

Historically, Scientific Services has operated within a fixed annual budget designed to deliver regulatory data defined by the operations of the Water and Waste Directorate (Scientific Services’ principal customer), and in addition, to provide data to other (external and Council) customers throughout the Gold Coast region. In 2009, Scientific Services relocated from the Coombabah Sewage Treatment Plant to new purpose-built facilities located in the Smart Water Research Centre (SWRC) on the Gold Coast Griffith University campus. Scientific Services is located on the ground floor of the SWRC in an area of approximately 1,000 square metres that has fully dedicated laboratory services suitable for chemical and biological testing. The Scientific Services business model and performance was reviewed in 2014 by an independent consultant (Jacobs), who indicated that Council needed to modify the operations 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 (2015 to 2018). Over this period, six-monthly progress reports have been provided to Council showing progress against the Implementation Plan. The Implementation Plan period is now complete and this report provides an overview of the achievements between 2015 and 2018, and provides a recommendation on the next stage of contestability. Current Situation Water and Waste is now at the end of the original three-year period of the contestability Implementation Plan. The eighteen members of Scientific Services are still located within the SWRC. REDACTED XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX


ITEM 3 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) Scientific Services is the only dedicated water testing laboratory on the Gold Coast. Commercial competitor laboratories are all located in Brisbane. The Tweed Heads Council laboratory also competes for business located on the Gold Coast. Key performance figures for Scientific Services include:

· 220 customers serviced annually; · 110,000 water quality tests performed annually; · 150 different analytes able to be tested for; and · 3000 hours annually collecting samples.

A summary of the achievements of the Implementation Plan towards contestability is given below. Goals The Jacobs report forecasted falling revenue and increasing costs for Scientific Services, and predicted that the business unit would be operating at a loss unless steps were taken to either increase revenue or decrease costs or both. The Implementation Plan had four goals to achieve contestability:

· Grow revenue. · Optimise the structure of the business unit. · Identify and implement operational efficiencies. · Broaden the scope of services offered to customers.

Revenue Strategies implemented to increase revenue within Scientific Services were: (i) increasing sales and upselling services to existing customers, (ii) gaining new external customers, (iii) developing new tests to broaden Scientific Services’ service options and, (iv) performing tests that were previously subcontracted to other laboratories. Figure X presents the increase in revenue from the period of the Jacobs report to 2018. REDACTED XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX


ITEM 3 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1)

Figure X

The proportion in revenue sources for Scientific Services is REDACTED xxxxxxxxxxxxxxxxxx xxxxxxx external sales from businesses located on the Gold Coast. Xxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx There has been an increase in the proportion of external revenue over the contestability period. The Table below shows a comparison of the financial performance from the financial year 2014 base year through to financial years 2017 and 2018. REDACTED xxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxx

TABLE xREDACTED xxxxxxxxxxxxxxxx xxxxxxxxxxxxx xxxx xxxxxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxxxxxxx xxxx xxxxxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxxxxxxx xxxx xxxxxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxxxxxxx

Organisation Changes In the Implementation Plan period, Scientific Services improved the quality and efficiency of its laboratory operations by restructuring. The changes focused on supporting and developing the core revenue-generating functions in the chemistry and microbiology sections.

REDACTED


ITEM 3 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) Three administrative non-revenue generating roles were redesigned into laboratory-based revenue generating roles providing testing services to customers. Efficiencies gained from the introduction of the new laboratory management software (QLIMS) package enabled the transfer of a further administration role out of Scientific Services. A major change was the reassigning of the sampling team to the Product Quality business group. This made sense because the majority of time and resources of the sampling team are spent on servicing the drinking water and sewerage treatment plant teams’ needs. These changes also supported operational improvements in the integrity of test data to ensure that high quality and reliable data is provided for drinking water, non-drinking water, sewage, and environmental water testing. The new staff recruited as part of these changes brought new skills to the business, and they contributed to widening the business’ product range and generating external revenue.

Figure X 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. Figure REDACTED XXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXX

REDACTED



Figure X

Figure X shows a quantitative measure of an improvement in quality that has occurred in the Implementation Plan period. As part of its quality accreditation from the National Association of Testing Authorities (NATA), Scientific Services participates in monthly blind round-robin proficiency testing on samples provided by a third party. The accuracy of the results is measured using statistical analysis, and a result that falls outside this measure is determined to be an “outlier”. The target for Scientific Services is zero outliers. REDACTED XXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX 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 (QLIMS). Operational efficiency was also increased from increasing equipment utilisation and targeting labour from the restructure discussed above. REDACTED XXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

REDACTED



Figure X

The propriety QLIMS solution was purchased following a commercial tender process. 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. REDACTED XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Service Scope Enhancement Throughout the Implementation Plan period, Scientific Services have continued to develop new testing methods that can be performed in-house to gain extra revenue. This includes gaining NATA accreditation for tests that were previously sent to third party external laboratories, and NATA accreditation for new tests that enhance the scope of testing for internal and external customers. The tests and revenue for the chemistry and microbiological teams are shown in the tables below. Note that not all the tests were developed at the beginning of the contestability period, with some only recently being developed. REDACTED XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Chemistry The chemistry tests focussed on increasing the number of metals that can be analysed using the new inductively coupled mass spectrometer and other instrumentation purchased to investigate carbon species in water. Scientific Services developed a rapid water screening test methodology for use in GC2018 to help identify if any of the Chemicals of Concern (as identified by Australian National Security) had entered the water supply during the games period. This required same-day turnaround time from sampling to result notification. The test suite was used to monitor drinking and recreational waters during GC2018.

REDACTED



TABLE REDACTED XXXXXXXXXXXXXX XXXXXXXXXX

Microbiology The microbiology team have focussed on developing new and rapid identification and enumeration technologies. In an Australian first, Scientific Services is now accredited for testing for the pathogenic Cryptosporidium and Giardia protozoa using the USEPA 1623.1 method. This accreditation is essential for investigating public health incidents concerning these parasites in drinking water supplies, source waters, and swimming pools. The microbiology team also developed a new agar method that reduces in turnaround times by 30% for Pseudomonas aeruginosa and heterotrophic colony counts, which is of direct benefit for the Council’s Community Services team in monitoring the public swimming pools on the Gold Coast. Another new test reintroduced by the microbiology team is Legionella, where the target market is Gold Coast healthcare facilities to meet new state and national guidelines for Legionella.

TABLE REDACTED XXXXXXXXXXXXXXXXXX XXXXXXXXX

The microbiology team are also heavily involved in supporting Water and Waste’s Catchment Management Team in identifying algal blooms for the toxic blue-green algae and testing environmental waters for E. coli and enterococci bacteria. Two new methods are under development by the microbiology team. Real-time quantitative polymerase chain reaction (qPCR) for potable and environmental water analysis using gene-specific probes labelled with a fluorescent marker to amplify the DNA molecules of an organism of interest (e.g. E. coli) aims to quantify bacteria on the same day as sampling, versus the traditional next day culturing method now used.


ITEM 3 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) The microbiology section is also evaluating adenosine triphosphate (ATP) probes as a rapid general water quality indicator. These probes may provide an early warning of a potential water quality or operational issues for Water and Waste. Potential Future Commercialisation Options A draft Business Plan for Scientific Services for the period out to 2029 is attached to this report. This Business Plan outlines four possible commercial options for the way forward for Scientific Services: Option 1 is REDACTED xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Option 2 is REDACTED xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Option 3 is REDACTED xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Option 4 is REDACTED xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx


ITEM 3 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) Analysis The above commercial options were analysed using a scoring framework that was assessed on each option’s advantages and disadvantages in terms of its potential impact, as shown in the Table below.

High Impact Medium Impact Low Impact Advantage Scored a “3” Scored a “2’ Scored a “1” Disadvantage Scored a “-3” Scored a “-2” Scored a “-1”

The scoring for the advantages and disadvantages of each Option is tabulated below:

TABLE REDACTED

TABLE REDACTED

TABLE REDACTED

TABLE REDACTED


ITEM 3 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) REDACTED xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

TABLE REDACTED XXXXXXXXXXXXXXX XXXXXX XXXXX

Based on the above scores Option 4 was identified as the most attractive option for the next phase of contestability. An indicative roadmap from 2019 to 2029 (when the current SWRC lease arrangement expires) is shown below.

Any potentially mutually beneficial commercial partnership would be subject to normal procurement processes and approvals. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Corporate Plan - What we want to see by 2022:

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

7 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.

REDACTED


ITEM 3 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) People and Culture Scientific Services have progressed staffing changes designed to improve the quality and efficiency of laboratory operations. Other opportunities may arise for staff movements from future efficiency savings. 8 RISK MANAGEMENT There are no direct links to currently identified Corporate or Directorate risks. 9 STATUTORY MATTERS Not Applicable. 10 COUNCIL POLICIES Not Applicable. 11 DELEGATIONS Not Applicable. 12 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)

Chris Owen, Manager Customer Engagement Water and Waste Yes

Karen O’Brien, Manager Business Performance Water and Waste Yes

13 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.


ITEM 3 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) 14 TIMING The milestones achieved are in accordance with the milestones outlined in the Scientific Services contestability Implementation Plan. REDACTED XXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX 15 CONCLUSION Scientific Services have completed a three-year plan to move the business to a contestable model. The Implementation Plan had four goals to achieve contestability: (i) grow revenue, (ii) optimise the structure of the business unit, (iii) identify and implement operational efficiencies, and (iv) broaden the scope of services offered to our customers. Revenue increased REDACTED XX from the base year of 2014. New tests were introduced to the market, XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXX Scientific Services has improved the quality and efficiency of its laboratory operations by restructuring and focussing on supporting and developing the core revenue-generating functions. REDACTED XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXX The number of proficiency outliers has decreased by an order of magnitude, XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXX A new LIMS system has targetted annual savings of XXXXXXXXXXXXXX XXXX. Scientific Services is now an attractive partner or investment vehicle, with a solid capital base, developed workforce, a track record of developing new products and a solid revenue stream. It is also housed in state-of-the-art laboratories XXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXX REDACTED XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX


ITEM 3 (Continued) SCIENTIFIC SERVICES DELIVERY MODEL – IMPLEMENTATION PLAN WSS1125/1229(P1) 16 RECOMMENDATION It is recommended that Council resolves as follows: 1 That the report/attachment 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 Council endorses Scientific Services to seek a potential partner to co-locate within the Smart Water Research Centre, with the intent of establishing a mutually beneficial commercial partnership.

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

Director Water and Waste

12 November 2018 TRACKS REF: 72139969 COMMITTEE RECOMMENDATION WW18.1204.003 moved Cr Tozer seconded Cr PC Young 1 That the report/attachment 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 Council endorses Scientific Services to seek a potential partner to co-locate within the Smart Water Research Centre, with the intent of establishing a mutually beneficial commercial partnership.

CARRIED UNANIMOUSLY

There being no further business the meeting closed at 10.53am.


Attachment 3.1 (pages 31 – 74) has been redacted due to confidential content.


These Pages

Numbered 1 to 75

Constitute The Adopted Report Of The Meeting

Of The Water and Waste Committee

Held Tuesday 04 December 2018

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