777 events tourism and governance committee 8 august 2019 ...€¦ · mr g mather acting director...

777 Adopted Report

of the

Events Tourism and Governance Committee Meeting

held

Thursday 8 August 2019 at

2pm

City of Gold Coast Council Chambers 135 Bundall Road Surfers Paradise

777th Council Meeting 13 August 2019 2 Events Tourism And Governance Committee Meeting 8 August 2019 Adopted Report

Index Adopted Report

Events Tourism and Governance Committee Meeting Thursday 8 August 2019

Item Direct. File Page Subject

1 OCOO LG115/1355/01/2019(P1) 5 Events Tourism And Governance Committee Action List And Forward Planning Schedule

2 OCOO LG115/1190/02/19/CF(P3) 7 Audit Committee Meeting – 22 July 2019

3 OS LG314/1185/19/040(P1) 17 Contract No LG314/1185/19/040 - Provision Of Microsoft Enterprise Agreement (EA) Licencing And Services 2019

Closed Session

4 OCOO CS105/274/2019(P1) 23 Gold Coast 600 - Withdrawn

OCEO Strategic Land Acquisition - Presentation Only

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

777th Council Meeting 13 August 2019 3 Events Tourism And Governance Committee Meeting 8 August 2019 Adopted Report ADOPTED BY COUNCIL 13 AUGUST 2019 RESOLUTION G19.0813.001 moved Cr PC Young seconded Cr Boulton That the Report of the Events, Tourism and Governance Committee Recommendations of Thursday, 8 August 2019, numbered ETG19.0808.001 to ETG19.0808.003, be adopted.

CARRIED UNANIMOUSLY ATTENDANCE Cr P C Young A/Chairperson left the room at 2.19pm, returned at 2.25pm Cr D Gates A/Chairperson during Cr PC Young’s absence Cr W M A Owen-Jones Cr K L Boulton Cr P A Taylor Cr D I McDonald Cr G M O'Neill Cr C Caldwell visitor – left 2.40pm Cr Baildon visitor – arrived 2.08pm Mr D R Dickson Chief Executive Officer Mr A J McCabe Chief Operating Officer Mr G Mather Acting Director Organisational Services APOLOGY / LEAVE OF ABSENCE PROCEDURAL MOTION moved Cr Boulton seconded Cr McDonald That the apology of Cr La Castra be noted.

CARRIED PRESENTATIONS Confidential Strategic Land Acquisition Mr D R Dickson, Chief Executive Officer 2pm

777th Council Meeting 13 August 2019 4 Events Tourism And Governance Committee Meeting 8 August 2019 Adopted Report The information below is extracted from the Procurement Policy and Contract Manual. Refer to the Procurement Policy and Contract Manual for complete details. Applying the Local Business Pricing Advantage If the best value pricing offer is from a Category A, B or C business (refer Table 1 below) then this offer is regarded as the most advantageous. For contracts where quotations are sought (generally with an expected worth less than $250,000), if the best value pricing offer is from a Category D, E, F or G business, but a pricing offer from a Category A or B business is within: • 30 per cent of the best value pricing offer for contracts less than $50,000 • 25 per cent of the best value pricing offer for contracts between $50,000 and $100,000 • 20 per cent of the best value pricing offer for contracts between $100,000 and $250,000. then the offer from the Category A or B business will be regarded as the most advantageous. Invitations to offer (tenders) are generally utilised for contract greater than $250,000. For contracts where invitations to offer are utilised with an expected worth less than $1,000,000 per annum; if the best value pricing offer is from a Category D, E, F or G business, but a pricing offer from a Category A or B business is within 15 per cent of the best value pricing offer, then the offer from the Category A or B business will be regarded as the most advantageous. Applying the Local Business Weightings Local Content Scoring A 15 per cent weighting related to the business locality will be included in Council’s capability scoring evaluation criteria, allocated as shown in Table 1 following. Table 1 Category Score Description

A 15% Developing or established Gold Coast business B 12% Branch office on the Gold Coast directly employing a minimum of 10

FTEs (not contractors) C 9% Branch office on the Gold Coast, established for a minimum of six

months, directly employing less than 10 FTEs (not contractors) D 4% Adjacent local government (Logan, Scenic Rim, Redland or Tweed

Shire) business E 2% Queensland business F 1% Interstate business G 0% Overseas business

Gold Coast Awards Scoring A two per cent weighting related to Gold Coast Awards will be included in Council’s capability scoring evaluation criteria, allocated as shown in Table 2 following. Table 2

Score Description

2% A winner of the Gold Coast Business Excellence Award, Gold Coast Young Entrepreneurs Award or Gold Coast Women in Business Award within the past 4 calendar years

1% A winner of a monthly Gold Coast Business Award, or finalist in the Gold Coast Young Entrepreneurs Awards or Gold Coast Women in Business Awards within the past 4 calendar years

0% All other businesses

777th Council Meeting 13 August 2019 5 Events Tourism And Governance Committee Meeting 8 August 2019 Adopted Report ITEM 1 OFFICE OF THE CHIEF OPERATING OFFICER EVENTS TOURISM AND GOVERNANCE COMMITTEE ACTION LIST AND FORWARD PLANNING SCHEDULE LG115/1328/01/2019(P1) Item Action Officer &/or

Branch Action/Previous Resolution

(778) Events, Tourism and Governance Committee 22 August 2019 Management of Gold Coast Tourist Parks Lifestyle & Community City Contracting Plan 2018-19 Quarterly Acquittal – April 2019 to June 2019

Organisational Services

Council Freehold Lt 6 on RP 844070 – Remembrance Drive, Surfers Paradise – Further Dealing With The Site


History and Future Dealing with Council Freehold Lot 6 on RP 138987


Coolangatta Gold Office of the Chief Operating Officer

Corporate Policy Portfolio Report 1 January – 30 June 2019

Office of the Chief Operating Officer

Strategic Land Acquisition Office of the Chief Executive Officer

Confidential Report

(779) Events, Tourism and Governance Committee 17 September 2019 Audit Committee Meeting – 26/8/2019 Office of the Chief Executive

Officer

City Operational Plan 2018-19 and Gold Coast 2022 Performance Report – Quarter 4

Office of the Chief Operating Officer

Make Regulated Parking (Amendment) Subordinate Local Law (No.1) 2019

Lifestyle & Community

Fleet Review Organisational Services Confidential Presentation Only

(780) Events, Tourism and Governance Committee 10 October 2019

Audit Committee Meeting 23 September 2019 Office of the Chief Executive Officer

HOTA Gold Coast Pty Ltd Bi-Annual Performance Report

Office of the Chief Executive Officer

Includes Presentation

Make Jetties and Boat Ramp (Amendment) Subordinate Local Law (No.1) 2019

Lifestyle & Community

(781) Events, Tourism and Governance Committee 24 October 2019

2018-19 Annual Report Office of the Chief Operating Officer

Connecting Southern Gold Coast Ltd Bi-Annual Performance Report



Broadbeach Alliance Ltd Bi-Annual Performance Report



Surfers Paradise Alliance Ltd Bi-Annual Performance Report



(782) Events, Tourism and Governance Committee 7 November 2019 HOTA Gold Coast Pty Ltd – Bi-Annual Performance Report



Corporate Structure Report Office of the Chief Executive Officer

Confidential Report

777th Council Meeting 13 August 2019 6 Events Tourism And Governance Committee Meeting 8 August 2019 Adopted Report ITEM 1 (Continued) EVENTS TOURISM AND GOVERNANCE COMMITTEE ACTION LIST AND FORWARD PLANNING SCHEDULE LG115/1328/01/2019(P1) Item Action Officer &/or

Branch Action/Previous Resolution

(783) Events, Tourism and Governance Committee 21 November 2019

Audit Committee Chair’s Annual Report Office of the Chief Executive Officer


RECOMMENDATION It is recommended that Council resolves as follows: That the list of proposed Agenda Items for the Events, Tourism and Governance Committee be noted. Authorised by: Joe McCabe TRACKS REF: # 54648256 Chief Operating Officer COMMITTEE RECOMMENDATION ETG19.0808.001 moved Cr Owen-Jones seconded Cr O'Neill That the list of proposed Agenda Items for the Events, Tourism and Governance Committee be noted.

CARRIED


ITEM 2 OFFICE OF THE CHIEF EXECUTIVE OFFICER AUDIT COMMITTEE MEETING – 22 JULY 2019 LG115/1190/02/19/CF(P3) 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT To present to Council the Audit Committee’s recommendations arising from its general meeting held on 22 July 2019. 4 PREVIOUS RESOLUTIONS ETG19.0521.004 (in part)

“That Council adopt the recommendations of the Audit Committee determined at its meeting held on 25 February 2019 as follows:”

5 DISCUSSION The Audit Committee (AC) met on 22 July 2019 to review and discuss a range of update reports since the last meeting in May 2019 in line with the Audit Committee Charter.

The following reports/updates were provided by executive officers for review and consideration by committee members:

Member declarations and other position disclosures were reviewed and updated.

Action requests from prior meetings were reviewed and discussed.

Quarterly update on major organisational activities and challenges by the Chief Executive Officer, covering: Light Rail 3A, Sale of Transit Centre/Bruce Bishop Car Park, Cultural Precinct, Insurances – Councillors and Officers, Major Events Corporation – Gold Coast, Fleet Review, Titans Community Club proposition , Carrara land purchase proposition, Olympic bid, Gold Coast Turf Club, ICT Portfolio, Customer Strategy, Divisional boundaries, Council election costs, Belcarra legislation, Energy Management, Digital assets, Oceanside Cruise Ship Terminal, Major Tourism Investment Proposition;

Pathway to SAP financial reconciliation update provided senior officers from Revenue Services Branch;

Active infrastructure charges progress update discussed with officers from Economy, Planning and Environment directorate;

Financial management update by the Manager Corporate Finance and senior officers, in particular the major site revaluations update;

Land Asset Revaluations update for the year ending 30 June 2019 by the Manager Property Services;

Asset Management Update by the Manager Corporate Asset Management;

Legal and insurance matters update provided by the City Solicitor;

WHS performance report and recommendations by the Manager Corporate Safety and Risk;


ITEM 2 (Continued) AUDIT COMMITTEE MEETING – 22 JULY 2019 LG115/1190/02/19/CF(P3)

Quarterly internal audit progress report by the Acting Manager Corporate Assurance

and the final internal audit reports;

Internal Audit Plan 2019-20;

Audit Committee Policy and Charter review;

Audit Committee forward schedule and meeting dates for the remainder of 2019.

The meeting was also attended (in part) by representatives from the Queensland Audit Office (QAO) who discussed the matters noted in the QAO briefing paper including: Status of Milestones and deliverables;

Final Interim Management Letter 2018-19;

Recent reports to Parliament and sector related topical news;

Progress on other current Performance Audits.

The committee's specific recommendations resulting from their consideration of the above matters are included in the recommendations section of this report for resolution by Council. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN The Audit Committee supports achievement of the following Corporate Plan 2020 outcomes:

We Manage the City Responsibly.

Our stewardship of the city provides value for money for ratepayers.

Program: Manage the short and long-term financial sustainability of the city through prudent financial management and ensuring value for money.

Program: Managing risk exposure faced by the City of Gold Coast, including ensuring a safe working environment and that “Work Health and Safety is everyone’s business”.

7 FUNDING AND RESOURCING REQUIREMENTS Budget/Funding Considerations Funding for the operation of Council's Audit Committee was approved within

Responsibility Centre CE8120 – Corporate Assurance, Budget Centre CE8120O008 - Audit Committee.

Costs for Capital Works and Service Proposals Not Applicable.

In accordance with the budget review guidelines the following circumstances require referral to the Special Budget Committee Not Applicable.

People and Culture

Not Applicable.


ITEM 2 (Continued) AUDIT COMMITTEE MEETING – 22 JULY 2019 LG115/1190/02/19/CF(P3) 8 RISK MANAGEMENT Council's audit committee promotes good corporate governance through the provision of independent assurance, oversight and advice to Council and the Chief Executive Officer on matters relating to risk management, internal control, governance, compliance, audit and financial reporting. 9 STATUTORY MATTERS Local Government Act 2009 Local Government Regulation 2012 10 COUNCIL POLICIES Audit Committee Policy and Charter Internal Audit Policy and Charter 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)

Bill Turner Audit Committee Chair

External Independent Member

Yes – recommendations only

Dale Dickson CEO Yes 13 STAKEHOLDER IMPACTS Directors and Council officers may need to respond to information requests from the Audit Committee as a result of this meeting. 14 TIMING This report is being provided to the next available Council meeting following the Audit Committee meeting as required by legislation. 15 CONCLUSION This written report of the deliberations and recommendations of the Audit Committee from its meeting of 22 July 2019 is provided to Council in accordance with section 211(1)(c) of the Local Government Regulation 2012 for adoption. As evidenced by the specific recommendations contained in this report, committee members have reviewed and considered a wide range of reports and engaged in robust discussions with Council management, internal auditors and external auditors, across a range of matters. The detailed recommendations of the committee are included in this report for the consideration of Council, and incorporate specific recommendations on matters where the Audit Committee members felt Council may appreciate additional comment.



16 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Council adopt the recommendations of the Audit Committee determined at

its meeting held on 22 July 2019 General Meeting as follows: AC19.0722.001 – Member Declarations and Other Position Disclosures a The Audit Committee confirms the completeness and accuracy of the Register of

Other Positions held by Independent External Audit Committee members subject to the update provided by Mitchell Petrie.

AC19. 0722.002 – Minutes of Previous Audit Committee Meeting b The Audit Committee notes that the recommendations of its meeting held on 22

May 2019 will be reported to the Events, Tourism and Governance Committee meeting on 25 July 2019 and Council’s subsequent meeting to be held on 30 July 2019.

AC19.0722.003 – Audit Committee Action Requests Register Update c The Audit Committee notes the update on action requests arising from prior

committee meetings.

d The Audit Committee noted advice that a Controlled Entity Policy is not planned to be available until September 2020 however considers that preparation of this Policy should be completed by December 2019.

e The Audit Committee notes that material relating to Rates and Charges Debt Write-offs will be circulated out of session.

AC19.0722.004 – CEO Current and Emerging Issues Update f The Audit Committee notes the update from the CEO, covering:

i Light Rail 3A

ii Sale of Transit Centre/Bruce Bishop Car Park

iii Cultural Precinct

iv Insurances – Councillors and Officers

v Major Events Corporation – Gold Coast

vi Fleet Review

vii Titans Community Club proposition

viii Strategic Land Acquisition

ix Olympic bid

x Gold Coast Turf Club

xi ICT Portfolio

xii Customer Strategy

xiii Divisional boundaries, Council election costs

xiv Belcarra legislation

xv Energy Management



xvi Digital assets

xvii Oceanside Cruise Ship Terminal

xviii Major Tourism Investment Proposition

AC19. 722.005 – Qld Audit Office Briefing – External Audit Update g The Audit Committee notes the update from the Queensland Audit Office on

external audit related matters incorporating: i QAO briefing paper – 22 July 2019 ii Interim Management Letter 2018-19

AC19. 722.006 – 2018-19 Interim Management Letter h The Audit Committee notes the QAO Interim Management Report for 2018-19 to

be tabled at Council meeting #776 on 30 July 2019. i The Audit Committee requested Corporate Finance to resolve with QAO whether

the identification of incorrect timing of recognition of contributed assets by the QAO as a Significant Deficiency is correct.

AC19.0722.007 – Financial Management update j The Audit Committee notes the Quarterly Financial Management update from the

Manager Corporate Finance.

AC19.0722.008 – Pathway-SAP Financial Reconciliation Update k The Audit Committee notes the latest update provided for the remaining

outstanding Pathway-SAP reconciliation issues. l That a further update be provided to the Audit Committee to deliver the outcome

of the review by the independent financial expert.

AC19.0722.009 – Active Infrastructure Charges Update m Audit Committee notes the analysis and update of the status of the review of

active infrastructure charges. n The Audit Committee recommends that further sampling of Category 2 properties

be undertaken to provide further assurance concerning the absence of charges payable.

AC19.0722.010 – 2018-19 Land Revaluations o Audit Committee notes the report on Land Asset Revaluations for the year ending

30 June 2019 by the Manager Property Services. p The Audit Committee recommends that the use of alternative valuation services

be considered for future valuation work.

AC19.0722.011 – Asset Management Update q The Audit Committee notes the Asset Management Update report. r That the Manager Corporate Asset Management provide an Asset Management

Update report to the Audit Committee (tentatively July 2020).

AC19.0722.012 – Work Health and Safety Performance Report s The Audit Committee note the WHS performance report and recommendations.



AC19.0722.013 - Legal and Insurance Matters Update t The Audit Committee notes the update from the City Solicitor in relation to legal

and insurance matters.

AC19.0722.014 – Internal Audit Progress Report u The Audit Committee notes the Internal Audit Update Report presented by the

Acting Manager Corporate Assurance. v The Audit Committee notes that the Internal Audit Unit is developing an updated

tracking system for monitoring of outstanding audit recommendations.

AC19.0722.015 – Finalised Internal Audit Reports w The Audit Committee notes the provision of 2018-19 Internal Audit Executive

Summary Reports covering: i Digital City Program – Data Governance Review ii Recruitment in Libraries iii Connecting Southern Gold Coast Financial Review iv IT General Controls – Pathway v Audit Action update report @ 30 June 2019 vi SAP GRC (Advisory) vii Online Timesheeting Project (Advisory) viii Active Infrastructure Charges business process review (Advisory) ix Fleet review (Advisory) x Payroll Email scam - Controls Review

AC19.0722.016 – Annual Internal Audit Plan Adoption 2019-20 x The Audit Committee endorses the 2019-20 Internal Audit Plan presented by the

Acting Manager Corporate Assurance.

AC19.0722.017– Policy Review - Audit Committee Charter y The Audit Committee notes that a further revised version incorporating proposed

changes to the Audit Committee Charter as discussed and agreed by members at the meeting, will be presented to the August meeting of the Committee for consideration

AC19.0722.018 – Audit Committee 2019 Meeting Dates and Forward Schedule z The Audit Committee notes the proposed Audit Committee meeting dates for the

remainder of calendar year 2019. aa The Audit Committee endorses meeting dates for the first half of 2020 being

brought forward as proposed to facilitate audit planning and activities. bb That the Audit Committee notes the Audit Committee Forward Schedule of

standing and specifically requested reports expected at future meetings.

AC19.0722.019 – Supplementary Information cc The Audit Committee notes the supplementary and background information

supplied relating to the annual planning deliberations of the committee. Author: Authorised by: Karen Farquhar Dale Dickson Acting Manager Corporate Assurance Chief Executive Officer 30 July 2019 # 74056634


ITEM 2 (Continued) AUDIT COMMITTEE MEETING – 22 JULY 2019 LG115/1190/02/19/CF(P3) CLOSED SESSION LOCAL GOVERNMENT ACT 2009 AND SUPPORTING REGULATIONS PROCEDURAL MOTION moved Cr Gates seconded Cr Taylor That the Committee move into Closed Session pursuant to section 275 (1) of the Local Government Regulation 2012, for the consideration of the following item for the reason shown:-

Item Subject Reason

2 Audit Committee Meeting – 22 July 2019 Prejudicial Matter

CARRIED

PROCEDURAL MOTION moved Cr Owen-Jones seconded Cr Taylor That the Committee move into Open Session.

CARRIED Following resumption into Open Session, Item 2 was moved and carried as shown on the following pages.


ITEM 2 (Continued) AUDIT COMMITTEE MEETING – 22 JULY 2019 LG115/1190/02/19/CF(P3) COMMITTEE RECOMMENDATION ETG19.0808.002 moved Cr Owen-Jones seconded Cr O'Neill 1 That Council adopt the recommendations of the Audit Committee determined at

its meeting held on 22 July 2019 General Meeting as follows: AC19.0722.001 – Member Declarations and Other Position Disclosures a The Audit Committee confirms the completeness and accuracy of the Register of

Other Positions held by Independent External Audit Committee members subject to the update provided by Mitchell Petrie.

AC19. 0722.002 – Minutes of Previous Audit Committee Meeting b The Audit Committee notes that the recommendations of its meeting held on 22

May 2019 will be reported to the Events, Tourism and Governance Committee meeting on 25 July 2019 and Council’s subsequent meeting to be held on 30 July 2019.

AC19.0722.003 – Audit Committee Action Requests Register Update c The Audit Committee notes the update on action requests arising from prior

committee meetings.

d The Audit Committee noted advice that a Controlled Entity Policy is not planned to be available until September 2020 however considers that preparation of this Policy should be completed by December 2019.

e The Audit Committee notes that material relating to Rates and Charges Debt Write-offs will be circulated out of session.

AC19.0722.004 – CEO Current and Emerging Issues Update f The Audit Committee notes the update from the CEO, covering:

i Light Rail 3A

ii Sale of Transit Centre/Bruce Bishop Car Park

iii Cultural Precinct

iv Insurances – Councillors and Officers

v Major Events Corporation – Gold Coast

vi Fleet Review

vii Titans Community Club proposition

viii Strategic Land Acquisition

ix Olympic bid

x Gold Coast Turf Club

xi ICT Portfolio

xii Customer Strategy

xiii Divisional boundaries, Council election costs

xiv Belcarra legislation

xv Energy Management

xvi Digital assets



xvii Oceanside Cruise Ship Terminal

xviii Major Tourism Investment Proposition

AC19. 722.005 – Qld Audit Office Briefing – External Audit Update g The Audit Committee notes the update from the Queensland Audit Office on

external audit related matters incorporating:

i QAO briefing paper – 22 July 2019

ii Interim Management Letter 2018-19

AC19. 722.006 – 2018-19 Interim Management Letter h The Audit Committee notes the QAO Interim Management Report for 2018-19 to

be tabled at Council meeting #776 on 30 July 2019.

i The Audit Committee requested Corporate Finance to resolve with QAO whether the identification of incorrect timing of recognition of contributed assets by the QAO as a Significant Deficiency is correct.

AC19.0722.007 – Financial Management update j The Audit Committee notes the Quarterly Financial Management update from the

Manager Corporate Finance.

AC19.0722.008 – Pathway-SAP Financial Reconciliation Update k The Audit Committee notes the latest update provided for the remaining

outstanding Pathway-SAP reconciliation issues.

l That a further update be provided to the Audit Committee to deliver the outcome of the review by the independent financial expert.

AC19.0722.009 – Active Infrastructure Charges Update m Audit Committee notes the analysis and update of the status of the review of

active infrastructure charges.

n The Audit Committee recommends that further sampling of Category 2 properties be undertaken to provide further assurance concerning the absence of charges payable.

AC19.0722.010 – 2018-19 Land Revaluations o Audit Committee notes the report on Land Asset Revaluations for the year ending

30 June 2019 by the Manager Property Services.

p The Audit Committee recommends that the use of alternative valuation services be considered for future valuation work.

AC19.0722.011 – Asset Management Update q The Audit Committee notes the Asset Management Update report.

r That the Manager Corporate Asset Management provide an Asset Management Update report to the Audit Committee (tentatively July 2020).

AC19.0722.012 – Work Health and Safety Performance Report s The Audit Committee note the WHS performance report and recommendations.



AC19.0722.013 - Legal and Insurance Matters Update t The Audit Committee notes the update from the City Solicitor in relation to legal

and insurance matters.

AC19.0722.014 – Internal Audit Progress Report u The Audit Committee notes the Internal Audit Update Report presented by the


v The Audit Committee notes that the Internal Audit Unit is developing an updated tracking system for monitoring of outstanding audit recommendations.

AC19.0722.015 – Finalised Internal Audit Reports w The Audit Committee notes the provision of 2018-19 Internal Audit Executive

Summary Reports covering:

i Digital City Program – Data Governance Review

ii Recruitment in Libraries

iii Connecting Southern Gold Coast Financial Review

iv IT General Controls – Pathway

v Audit Action update report @ 30 June 2019

vi SAP GRC (Advisory)

vii Online Timesheeting Project (Advisory)

viii Active Infrastructure Charges business process review (Advisory)

ix Fleet review (Advisory)

x Payroll Email scam - Controls Review

AC19.0722.016 – Annual Internal Audit Plan Adoption 2019-20 x The Audit Committee endorses the 2019-20 Internal Audit Plan presented by the


AC19.0722.017– Policy Review - Audit Committee Charter y The Audit Committee notes that a further revised version incorporating proposed

changes to the Audit Committee Charter as discussed and agreed by members at the meeting, will be presented to the August meeting of the Committee for consideration

AC19.0722.018 – Audit Committee 2019 Meeting Dates and Forward Schedule z The Audit Committee notes the proposed Audit Committee meeting dates for the

remainder of calendar year 2019.

aa The Audit Committee endorses meeting dates for the first half of 2020 being brought forward as proposed to facilitate audit planning and activities.

bb That the Audit Committee notes the Audit Committee Forward Schedule of standing and specifically requested reports expected at future meetings.

AC19.0722.019 – Supplementary Information cc The Audit Committee notes the supplementary and background information

supplied relating to the annual planning deliberations of the committee.

CARRIED


ITEM- 3 ORGANISATIONAL SERVICES CONTRACT NO LG314/1185/19/040 –PROVISION OF MICROSOFT ENTERPRISE AGREEMENT (EA) LICENCING AND SERVICES 2019 LG314/1185/19/040(P1) 1 BASIS FOR CONFIDENTIALITY Not applicable. 2 EXECUTIVE SUMMARY Not applicable. 3 PURPOSE OF REPORT This report seeks approval to enter into contractual arrangement LG314/1185/19/040 for the continued provision of Microsoft Enterprise Agreement (EA) Licencing and Services for a period of three (3) years with Insight Enterprises Australia Pty Ltd. 4 PREVIOUS RESOLUTIONS Ex Minute G19.0613.050/ETG19.0606.006 (in part):

4 That Council resolves that the suppliers included in Attachment 2 are either sole source or single source suppliers as nominated.

5 That Council adopts the amended City Contracting Plan 2018-19.

5 DISCUSSION The Council of the City of Gold Coast (Council) has a strategic commitment to Microsoft products in order to conduct its day-to-day business operations, in support of its ratepayers and visitors. The wide global adoption of those Microsoft products and solutions means Council simplifies it’s interactions with third parties through the use of the same products and solutions. Council has an existing arrangement in place for Microsoft EA Licencing and Services with Insight Enterprises Australia Pty Ltd which is due to expire on 30 September 2019. The current service has been of a very high quality and this has been validated by responsiveness and alignment in meeting the contracted Service Level targets, over the past three years. In June 2019, Council resolved to support a single source sourcing strategy from a government arrangement for Microsoft EA Licencing and Services with Insight Enterprises Australia Pty Ltd (G19.0613.050). This approved procurement approach has been identified as the most suitable model to support the achievement of value for money through economies of scale and aggregation of government demand value for money outcomes, reduce project risk, meet critical milestones and improve the efficiency of procurement processes. Market analysis undertaken, shows that due to the State Government requirements and volumes being significantly greater than the City of Gold Coast, it has access to more competitive licencing rates under the State Government master agreements. Leveraging off the Queensland Whole of Government Standing Offer Arrangement will yield significant savings for Council. Savings of around $3.3 million have been estimated over the three year period of the contract as shown below, which will not be likely if an alternate sourcing strategy is chosen.


ITEM- 3 (Continued) CONTRACT NO LG314/1185/19/040 –PROVISION OF MICROSOFT ENTERPRISE AGREEMENT (EA) LICENCING AND SERVICES 2019 LG314/1185/19/040(P1) Financial Year

Description Anticipated Contract Spend based on Whole of Government Rates

Estimated spend based on the current contract rates

Year 1 Provision of Microsoft EA Licencing and Services

$3,033,804.17 $3,943,945.42


$3,883,804.17 $5,048,945.42


$4,083,804.17 $5,308,945.42

Total $11,001,412.51

$14,301,836.26

Total Savings (3 years) $3,300,423.75

It is therefore recommended that Council enters into an agreement with Insight Enterprises Australia Pty Ltd under the Queensland Whole of Government Standing Offer Arrangement, providing a flexible licensing model that allows Council to continue with on premise infrastructure while transitioning to subscription licensing with the option to move to cloud-based licensing in the future. 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN This requirement was adopted by Council as a proposed contract and sourcing method under the City Contracting Plan 2018-19 (G19.0613.050), as follows.

7 FUNDING AND RESOURCING REQUIREMENTS The estimated contract value of the Microsoft EA Licencing and Services for the proposed three (3) year contract term is $11,001,412. An operational recurrent budget is allocated for the Microsoft EA Licencing and Services requirement within Budget Centre OS7530O012, with funding of $11,001,412 in the 2019-20, 2020-21 and 2021-22 financial years.

Ref. Purpose Alignment to Corporate Strategies,

Operational and Corporate Plans

Sourcing Method Contract Type*

**Estimated Value of

Contract(s)

Expected Contract

Duration + Extension Option(s)

Expected time to market

(financial year)

A11254 Microsoft EA 2019 Single Source from a government/LGAQ arrangement

(iv)S $12,100,000 3 years (1 year)

Q4


ITEM- 3 (Continued) CONTRACT NO LG314/1185/19/040 –PROVISION OF MICROSOFT ENTERPRISE AGREEMENT (EA) LICENCING AND SERVICES 2019 LG314/1185/19/040(P1) Financial Year

Budget/ Cost Centre

WBS Description Contract Estimate (excl. GST)

2019-20 OS7530O012 1008507 •Enterprise Agreement Subscription •Server and Cloud Enrolment

$3,033,804


$3,883,804


$4,083,804

Total Estimate and Funding Available: $11,001,412

People and Culture No extra staff will be required for this project. 8 RISK MANAGEMENT The project risks have been identified and relevant mitigation measures applied. The risk assessment is on file for reference. 9 STATUTORY MATTERS The process has been carried out in accordance with the Local Government Regulation 2012 which requires adherence to sound contracting principles. These principles are defined in Section 104(3) of the Local Government Act 2009 and are as follows. Value for money. Open and effective competition. The development of competitive local business and industry. Environmental protection. Ethical behaviour and fair dealing.

Under the Strategic Contracting Procedures, a local government must make and adopt a Contract Manual (section 222 Local Government Regulation 2012). A Contract Manual is a document that sets out the procedures for how the local government is to carry out all contracts. The City of Gold Coast’s Contract Manual defines where Council may enter into a contract without first inviting competitive offers. 10 COUNCIL POLICIES The proposed approach is consistent with the Procurement Policy and Contract Manual.


ITEM- 3 (Continued) CONTRACT NO LG314/1185/19/040 –PROVISION OF MICROSOFT ENTERPRISE AGREEMENT (EA) LICENCING AND SERVICES 2019 LG314/1185/19/040(P1) 11 DELEGATIONS Not applicable. 12 COORDINATION & CONSULTATION The Microsoft EA Licencing and Services requirements have been developed in consultation with a range of City Branches to ensure service standards and procedures align with operating requirements. 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)

Acting Chief Information Officer Peter Morichovitis

Organisational Services - BITS

Yes

Executive Coordinator Information Solutions Angus Barr


Yes

Coordinator Service Performance & Integration Scott Smith


Yes

Senior Lawyer Bryan Abel

Office of the Chief Operating Officer – Legal Services

Consulted

Coordinator Category & Relationship Management James Powell

Organisational Services – City Procurement

Yes

Procurement Representative Anthony Seaniger

Organisational Services – City Procurement

Yes

13 STAKEHOLDER IMPACTS Not applicable.

14 TIMING The anticipated contract commencement date is 1 October 2019. 15 CONCLUSION The Microsoft EA Licencing and Services provider is a Microsoft Licencing Service Provider (LSP) and experienced in providing a flexible licensing model that allows Council to continue with on premise infrastructure while transitioning to subscription licensing with the option to move to cloud-based licensing in the future. It is recommended that Council enters into contractual arrangement LG314/1185/19/040 for the provision of Microsoft EA Licencing and Services with Insight Enterprises Australia Pty Ltd for a period of three (3) years.


ITEM- 3 (Continued) CONTRACT NO LG314/1185/19/040 –PROVISION OF MICROSOFT ENTERPRISE AGREEMENT (EA) LICENCING AND SERVICES 2019 LG314/1185/19/040(P1) 16 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Council enters into contractual arrangement LG314/1185/19/040 for the provision

of Microsoft EA Licencing and Services with Insight Enterprises Australia Pty Ltd for a period of 3 years.

2 That Council notes that the anticipated contract value is $11,001,412.51. A budget for 2019-20 has been approved and funds are available in Budget Centre OS7530O012. Recurrent budgets will be submitted by the Asset Custodian for approval for the subsequent financial years of the contract.

Author:

Authorised by:

Steve Hinde Grant Mather Executive Coordinator Business Engagement

Acting Director Organisational Services

29 July 2019 Doc #73907744 COMMITTEE RECOMMENDATION ETG19.0808.003 moved Cr Owen-Jones seconded Cr O'Neill 1 That Council enters into contractual arrangement LG314/1185/19/040 for the

provision of Microsoft EA Licencing and Services with Insight Enterprises Australia Pty Ltd for a period of 3 years.

2 That Council notes that the anticipated contract value is $11,001,412.51. A budget for 2019-20 has been approved and funds are available in Budget Centre OS7530O012. Recurrent budgets will be submitted by the Asset Custodian for approval for the subsequent financial years of the contract.

CARRIED


CLOSED SESSION LOCAL GOVERNMENT ACT 2009 AND SUPPORTING REGULATIONS PROCEDURAL MOTION moved Cr Taylor seconded Cr Boulton That the Committee move into Closed Session pursuant to section 275 (1) of the Local Government Regulation 2012, for the consideration of the following item for the reason shown:-

Item Subject Reason

Strategic Land Acquisition – Presentation Only Prejudicial Matter

CARRIED

PROCEDURAL MOTION moved Cr Owen-Jones seconded Cr Boulton That the Committee move into Open Session.

CARRIED


ITEM 4 OFFICE OF THE CHIEF OPERATING OFFICER GOLD COAST 600 CS105/274/02/2019(P1) REPORT CONFIDENTIAL The matter was withdrawn. There being no further business the meeting closed at 3.11pm.


These Pages

Numbered 1 to 24

Constitute The Adopted Report Of The Meeting

Of The Events Tourism and Governance Committee

Held Thursday 8 August 2019

777 events tourism and governance committee 8 august 2019 ...€¦ · mr g mather acting director...

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