agenda: corporate & works committee date: monday 17 august ... · woollahra municipal council...

Agenda: Corporate & Works Committee

Date: Monday 17 August 2015

Time: 6.00pm

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Outline of Meeting Protocol & Procedure: The Chairperson will call the Meeting to order and ask the Committee/Staff to present apologies or late

correspondence. The Chairperson will commence the Order of Business as shown in the Index to the Agenda. At the beginning of each item the Chairperson will ask whether a member(s) of the public wish to address the

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

comments to the issues at hand. If there are persons representing both sides of a matter (eg applicant/objector), the person(s) against the

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

the debate unless specifically called to do so by the Chairperson. If there is more than one (1) person wishing to address the Committee from the same side of the debate, the

Chairperson will request that where possible a spokesperson be nominated to represent the parties. The Chairperson has the discretion whether to continue to accept speakers from the floor. After considering any submissions the Committee will debate the matter (if necessary), and arrive at a

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

Recommendation only to the Full Council: Such matters as are specified in Section 377 of the Local Government Act and within the ambit of the

Committee considerations. The voting of money for expenditure on works, services and operations. Rates, Fees and Charges. Donations Matters which involve broad strategic or policy initiatives within responsibilities of the Committee. Matters not within the specified functions of the Committee. Asset Rationalisation. Corporate Operations:-

- Statutory Reporting; - Adoption of Council's Community Strategic Plan, Delivery Program and Operational Plan; - Delegations; and - Policies.

Tenders as per Regulation requirements. Leases required to be determined by Full Council by specific legislative requirements Matters reserved by individual Councillors in accordance with any Council policy on "safeguards" and

substantive changes.

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

Council direction or delegated specifically to another Committee. Note: This not to limit the discretions of nominated staff members exercising Delegated Authorities granted by

the Council. Statutory reviews of Council's Delivery Program and Operational Plan; Finance Regulations, including:-

- Authorisation of expenditures within budgetary provisions where not delegated; - Quarterly review of Budget Review Statements; - Quarterly and other reports on Works and Services provision; and - Writing off of rates, fees and charges because of non-rateability, bad debts, and impracticality of

collection. Auditing. Property Management. Asset Management. Works and Services - Monitoring and Implementations. Legal Matters and Legal Register. Parks and Reserves Management. Infrastructure Management, Design and Investigation. To require such investigations, reports or actions as considered necessary in respect of matters contained within

the Business Agenda (and as may be limited by specific Council resolution). Confirmation of the Minutes of its Meetings. Any other matter falling within the responsibility of the Corporate & Works Committee and not restricted by the

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

Committee Membership: 7 Councillors Quorum: The quorum for a Committee meeting is 4 Councillors.

Woollahra Municipal Council Corporate & Works Committee Agenda 17 August 2015

Woollahra Municipal Council

Notice of Meeting

13 August 2015 To: Her Worship the Mayor, Councillor Toni Zeltzer ex-officio

Councillors Deborah Thomas (Chair) Peter Cavanagh Andrew Petrie Matthew Robertson Susan Wynne Jeff Zulman (Deputy Chair)

Dear Councillors

Corporate & Works Committee – 17 August 2015 In accordance with the provisions of the Local Government Act 1993, I request your attendance at Council’s Corporate & Works Committee meeting to be held in the Council Chambers, 536 New South Head Road, Double Bay, on Monday 17 August 2015 at 6.00pm. Gary James General Manager


Meeting Agenda Item Subject Page 1. Leave of Absence and Apologies 2. Late Correspondence 3. Declarations of Interest

Items to be Decided by this Committee using its Delegated Authority

D1 Confirmation of Minutes of Meeting held on 3 August 2015 ..................................... 1 D2 Monthly Financial Report - July 2015 ......................................................................... 3 D3 Delivery Program 2013 to 2017 & Operational Plan 2014/15 (DPOP) Quarterly

Progress Report June 2015 against Goal 10 - Working Together and Goal 11 - A Well Managed Council (FY230) ............................................................................ 13

D4 Council business/commercial centre cleaning service ............................................... 49

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

R1 Capital Works Program Status Report - June 2015 including 2014/15 Budget Revotes & Rollovers (FY230) .................................................................................. 55

R2 Tender SC2797 Village High Road, Vaucluse - Civil Infrastructure Works ........... 107 R3 TenderSC2852 New South Head Road, Vaucluse Public Domain Works .............. 113 R4 Tender SC2868 Rose Bay Pedestrian Cycle Shared Path Project ........................... 119


Item No. D1 Page 1

Item No: D1 Delegated to Committee

Subject: CONFIRMATION OF MINUTES OF MEETING HELD ON 3 AUGUST 2015

Author: Sue O’Connor File No: 15/109545 Reason for Report: The Minutes of the Corporate & Works Committee of 3 August 2015

were previously circulated. In accordance with the guidelines for Committees’ operations it is now necessary that those Minutes be formally taken as read and confirmed.

Recommendation: THAT the Minutes of the Corporate & Works Committee Meeting of 3 August 2015 be taken as read and confirmed.


Item No. D2 Page 3


Subject: MONTHLY FINANCIAL REPORT - JULY 2015

Author: Don Johnston, Chief Financial Officer Approver: Stephen Dunshea, Director - Corporate Services File No: 15/108845 Reason for Report: To present the monthly financial report for July 2015 Recommendation: A. Receive and note the Monthly Financial Report – July 2015. B. Note that Council’s 12 months weighted average return on its direct investment portfolio of

3.01% exceeds the July 2015 benchmark 90 day term deposit index of 2.46%.

C. Note that the total interest earned for year to date July 2015 of $218k exceeds the 2015/16 Budget of $211k.

1. Background: Clause 212 of the Local Government (General) Regulation 2005 requires the responsible accounting officer (Council’s Chief Financial Officer) to provide the Council with a monthly report setting out details of all money that the Council has invested. The Monthly Financial Report for July 2015 is submitted to the Committee for consideration and includes the following: Investment Transactions for the Month Summary of Receipts, Payments and Bank Balance Summary of Investments Details of Investment Portfolio Statement of Investment Policy Compliance Charts:

Weighted Average Maturity and Weighted Average Returns Weighted Average Returns v Australian 90 day Term Deposit Index Actual Interest Earned v Original Budget & Revised Forecast Maturity Profile Chart

Movements in Book Value of Investments


Item No. D2 Page 4

2. Investment Transactions for the Month Date Transaction Description Amount ($) 30 Jun Book Value of Investments Held 93,592,794.55 20 Jul Maturity Bankwest, 31 days @ 2.40% (4,000,000.00) 20 Jul Purchase St George Bank, 182 days @ 2.85% 4,000,000.00 30 Jul Maturity Bendigo Bank, 365 days @ 3.65% (1,000,000.00) 31 Jul Maturity Bendigo Bank, 365 days @ 3.65% (1,000,000.00) Various Net Movement Net Movement in Online Savings Cash Accounts (1,598,320.84)

Various Net Movement Net Movement in UBS Cash Management Trust Account (Coupon payments + UBS interest + Deposits– UBS Fees)

8,237.84

Net Change in Portfolio (3,590,083.00) 31 Jul Book Value of Investments Held 90,002,711.55

Commentary: There was minimal investment activity during the month with three deposit maturities totalling $6m of which $4m was reinvested. 3. Investment Working Party Update In relation to the Lehman matter, there are no further updates. The liquidators had indicated that they may declare an interim dividend during August. Further updates in relation to the Lehman matter will be provided as they come to hand. 4. Investment Policy Review Council has received a portfolio analysis report from its investment advisor, CPG Research & Advisory. Work on a report back to the Corporate & Works Committee is well advanced. There are a number of opportunities available to Council to improve its investment returns that would require changes to the current Investment Policy to take advantage of them. It is anticipated the report on the review of the Investment Policy will be presented to the next Corporate & Works Committee meeting with Andrew Vallner in attendance.


Item No. D2 Page 5

5. Summary of Receipts, Payments and Bank Balance:

Commentary: This statement presents Council’s bank reconciliation as at 31 July 2015. The top ten receipt and payment items are provided in the report. Excluding investment transactions, payments exceeded receipts for the month by some $3.5m which is a normal trend for a non-rates instalment month. It should also be noted that we had significant periodic payments during July including insurance renewals ($1.5m) and statutory contributions and grant payments ($840k).

Cash Book Balance as at 30 June, 2015 76,872.90

Receipts

Rates 1,731,858.72

Investment Maturities 6,000,000.00

Transfers In from At Call Accounts 8,640,000.00

Other 5,109,391.19

Total Receipts 21,481,249.91

Description Amount

Capital Grants - General 803,359.00

Sundry Debtors 719,430.60

Parking Fines 515,865.06

Traffic Route Lighting Subsidy 350,000.00

Kiaora Lands Rental Income (net) 350,000.00

Deposits & Bonds 346,234.98

GST Refund 264,693.00

Trade Waste Debtors 190,432.76

S.94A Contributions 185,217.30

Parking Meter Charges 171,037.95

Payments - Cheque

Cheque Payments -840,345.84

Cancelled Cheques 48,136.30

Total Cheque Payments for period -792,209.54

Cheque No Cheque Date Payee Description Amount

222633 30/07/2015 Waverley Municipal Council Alexandria Facility operating costs Jan-May'15 -151,051.86

222459 9/07/2015 Starcon Group Pty Limited Gen works - Union and Underwood Sts., -47,817.30

222398 2/07/2015 AGL Sydney Street lighting - May'15 -45,089.27

222608 30/07/2015 AGL Sydney Street lighting - Jun'15 -44,940.61

222546 23/07/2015 Gordon Institute of TAFE Training of staff - Cert 4 in Civil Construction -25,305.00

222504 16/07/2015 GL and HL Sturgess Consulting fees -21,450.00

222407 2/07/2015 Public Works - Manly Hydraulics Laboratory Gen works - Caledonian Road -18,893.60

222506 16/07/2015 HealthbyDesign Health by Design staff presentation -18,098.85

222445 2/07/2015 Telstra Integrity Services Gen works - William St., -17,581.74

222491 16/07/2015 Austral Monsoon Door Services Gen works - Quarry St Depot -14,714.70

Payments - EFT

EFT Payments -6,635,526.00

Returned EFTs

Total EFT Payments for period -6,635,526.00

Reference EFT Date Payee Description Amount

50230 9/07/2015 Statewide Mutual Insurance renewals - Public Liab, Property, M Veh -1,462,790.19

50433 23/07/2015 Ministry for Police & Emergency Services Statutory contribution - Fire & Rescue NSW - 1st qtr -609,226.05

50310 16/07/2015 Holdsworth St Community Centre Grant funding - 1st qtr -231,325.61

50367 16/07/2015 United Resource Management Group Pty Ltd Recycling contract - Jun'15 -206,150.14

50354 16/07/2015 SUEZ Environment Recycling & Waste Recov Tipping charges 1-16/6 -199,520.51

50499 30/07/2015 Bucher Municipal Pty Ltd Fleet purchases -199,260.94

50440 23/07/2015 SUEZ Environment Recycling & Waste Tipping charges 17-30/6 -168,488.89

50282 16/07/2015 Civil Works (NSW) Pty Ltd Gen works - William St., -167,663.45

50138 2/07/2015 SUEZ Environment Recycling & Waste Recov Tipping charges 19-31/5 -164,445.64

50512 30/07/2015 State Debt Recovery Office Infringement processing fees - Jun'15 -89,313.60

Payments - Direct Debits From Bank A/c

Payroll -2,160,441.03

PAYG Tax -731,632.00

Bank Charges -19,016.48

Investment Purchases -4,000,000.00

Transfers to At Call Accounts -7,010,000.00

Credit Cards -6,855.46

Councillors' fees -25,182.63

Total Direct Debits for period -13,953,127.60

Total Payments -21,380,863.14

Cash Book Balance as at 31 July 2015 177,259.67

Unpresented Cheques No of Cheques: 169 Value: 338,530.58

Outstanding Deposits & Miscellaneous Items 581,360.86

Reconciled Cash Book Balance as at 31 July 2015 1,097,151.11

Bank A/c Balance as at 31 July 2015 1,097,151.11

Unpresented Cheques > $30,000.00

Cheque No. Cheque Date Payee Description Amount

222608 30/07/2015 AGL Street lighting - Jun'15 44,940.61

222633 30/07/2015 Waverley Municipal Council Alexandria Facility operating costs Jan-May'15 151,051.86


Item No. D2 Page 6

6. Investment Portfolio as at 31 July 2015:

.

INVESTMENTS AS AT 31 JULY 2015 31/07/2015

CATEGORY

FACE

VALUE

$

BOOK VALUE

$

1. LEHMAN BROTHERS (formerly Grange Securities Ltd)

Funds previously under management 60,060 60,060

2. OAKVALE CAPITAL Limited

Funds previously under management 1,000,000 640,500

RATING CATEGORY

PURCHASE

DATE

MATURITY

DATE

TOTAL

TERM

(DAYS)

REMAINING

DAYS TO

MATURITY %

FACE

VALUE

$

BOOK VALUE

$

GOV'T

GUARANTEE

3. WMC DIRECT INVESTMENTS

TERM DEPOSITS: (in order of M aturity)

ST GEORGE

TERM DEPOSIT 9/10/2014 5/08/2015 300 5 3.48 2,000,000 2,000,000 #

AM P BANK

TERM DEPOSIT 11/11/2014 10/08/2015 272 10 3.50 2,000,000 2,000,000 #

ANZ BANK

TERM DEPOSIT 18/03/2015 17/08/2015 152 17 2.89 4,000,000 4,000,000 #

NATIONAL AUSTRALIA BANK

TERM DEPOSIT 2/06/2015 31/08/2015 90 31 2.90 4,000,000 4,000,000 #

ANZ BANK

TERM DEPOSIT 23/06/2015 21/09/2015 90 52 2.75 1,000,000 1,000,000 #

SUNCORP

TERM DEPOSIT 23/06/2015 21/09/2015 90 52 2.90 1,000,000 1,000,000 #

ANZ BANK

TERM DEPOSIT 26/09/2014 28/09/2015 367 59 3.51 2,000,000 2,000,000 #

ANZ BANK

TERM DEPOSIT 2/06/2015 30/10/2015 150 91 2.81 1,000,000 1,000,000 #

SUNCORP

TERM DEPOSIT 2/06/2015 30/10/2015 150 91 2.95 1,000,000 1,000,000 #


TERM DEPOSIT 7/11/2014 6/11/2015 364 98 3.55 2,000,000 2,000,000 #

ANZ BANK

TERM DEPOSIT 7/11/2014 6/11/2015 364 98 3.47 3,000,000 3,000,000 #

ST GEORGE

TERM DEPOSIT 21/05/2015 17/11/2015 180 109 2.71 4,000,000 4,000,000 #


TERM DEPOSIT 21/05/2015 17/12/2015 210 139 2.93 4,000,000 4,000,000 #

ANZ BANK

TERM DEPOSIT 21/05/2015 17/12/2015 210 139 2.80 6,000,000 6,000,000 #

COM M ONWEALTH BANK

FLOATING RATE NOTE** 5/03/2012 24/12/2015 1389 146 4.09 1,000,000 1,000,000 #


TERM DEPOSIT 13/01/2015 8/01/2016 360 161 3.56 2,000,000 2,000,000 #


TERM DEPOSIT 18/05/2015 13/01/2016 240 166 2.93 5,000,000 5,000,000 #

ANZ BANK

TERM DEPOSIT 18/05/2015 13/01/2016 240 166 2.81 2,000,000 2,000,000 #

ST GEORGE

TERM DEPOSIT 20/07/2015 18/01/2016 182 171 2.85 4,000,000 4,000,000 #

ING DIRECT

TERM DEPOSIT 10/02/2015 5/02/2016 360 189 3.00 1,000,000 1,000,000 #

ING DIRECTTERM DEPOSIT 10/02/2015 5/02/2016 360 189 3.00 1,000,000 1,000,000 #

BANKWEST

TERM DEPOSIT 26/06/2015 22/03/2016 270 235 2.90 7,000,000 7,000,000 #

ST GEORGE

TERM DEPOSIT 27/04/2015 26/04/2016 365 270 2.80 3,000,000 3,000,000 #


TERM DEPOSIT 26/06/2015 23/05/2016 332 297 2.98 2,000,000 2,000,000 #

ST GEORGE

TERM DEPOSIT 23/06/2015 22/06/2016 365 327 2.74 1,000,000 1,000,000 #

ANZ BANK

TERM DEPOSIT 23/06/2015 22/06/2016 365 327 2.84 1,000,000 1,000,000 #


TERM DEPOSIT 23/06/2015 22/06/2016 365 327 2.98 4,000,000 4,000,000 #

AT CALL:

COM M ONWEALTH BANK

ONLINE SAVER A/C 1.95/1.85 16,204,485 16,204,485 #

AMP BANK

31DAY NOTICE ACCT 2.70 2,047,667 2,047,667

ANZ BANK

11AM CALL ACCT 2.00 50,000 50,000 #

Total WMC Direct Investments 89,302,152 89,302,152

Weighted Average Days to Maturity of WMC Direct Investments 149.93

Weighted Average Return of WMC Direct Investments 3.01

PORTFOLIO TOTALS 90,362,212 90,002,712

# Covered under Council's Investment Policy

* Government Guaranteed deposits have been rated AAA

** BBSW + 1.05%p.a.

I hereby certify that the above investments have been made in accordance w ith Section 625 of the Local Government Act 1993,

Clause 212 of the Local Government (General) Regulation 2005 and Council's investment policy.

D. Johnston

CHIEF FINANCIAL OFFICER


Item No. D2 Page 7

The Commonwealth Bank currently exceeds the 25% threshold due to the requirement to have $12m readily available for the settlement due on our Alexandria Integrated Facility.


Item No. D2 Page 8

Commentary: The weighted average dropped by 17 days between June and July with the bulk of our portfolio moving closer to maturity and the only investment for the month placed on terms less than those of the maturity it replaced.

Commentary:

With minimal movements in the portfolio the weighted average return remained almost unchanged from the month before.

152

127 114 115

162

131 124 121

96

70

151 167

150

0

20

40

60

80

100

120

140

160

180

Days

Weighted Average Days to Maturity

3.603.49 3.45 3.47

3.51 3.513.46

3.38

3.20 3.12 3.13

3.00 3.01

2.70

2.80

2.90

3.00

3.10

3.20

3.30

3.40

3.50

3.60

3.70

% R

etu

rn

Weighted Average Return


Item No. D2 Page 9

Commentary: This chart tracks Council’s weighted average return on its direct investment portfolio against a 90 day term deposit index. There was virtually no movement in either the Council or TD Index during July.

Commentary: At this early part of the year the Actual v. Budget chart includes the Original Budget and Actuals only. The total accrued interest for year-to-date July 2015 of $218k is ahead of our original budget of $211k for the same period.

3.60 3.49 3.45 3.47 3.51 3.51 3.46 3.38 3.20 3.12 3.13 3.00 3.01

3.14 3.12 3.11 3.10 3.09 3.08 3.072.83 2.70 2.62 2.48 2.47 2.46

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

% R

etu

rn

Weighted Average Return v TD Index

Council TD Index

218

211410

564723

8741,032

1,188

1,330

1,484

1,6331,781

1,932

0

500

1,000

1,500

2,000

2,500

Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun

Actual Interest Earned v Original Budget$'000

Actual Original Budget


Item No. D2 Page 10

Maturity Range $M Invested % of Portfolio < 90 days 34.30 38.41

90 - 180 days 35.00 39.19 181 - 270 days 12.00 13.44 271 - 365 days 8.00 8.96

1 - 2 years 0.00 0.0 2 - 3 years 0.00 0.0 3 -5 years 0.00 0.0

89.30 100.0 Commentary: The chart and table reflect Council’s position of generally rolling short term investments.

< 90 days, $34.3m, 38.41%

90-180 days, $35.00m, 39.19%

181 - 270 days, $12.00m, 13.44%

271 - 365 days, $8.00m, 8.96%

1 - 2 YEARS, $0.0m, 0.0%

2 - 3 YEARS,$ 0m, 0.%

3 -5 YEARS, $0m, 0%

Direct Investment Maturities


Item No. D2 Page 11

7. Movement in Book Value (Fair Value) of Investments:

Commentary: The table above details any movements in Council’s portfolio formerly managed by Lehman Brothers and Oakvale Capital along with Council’s direct investment floating rate note. It typically includes the maturity or sale of securities, quarterly coupon payments and fair value (market) adjustments. It will also include small payments of interest earned on Council’s cash management accounts and the deduction of fees associated with Council’s safe custody arrangements. All coupons due for July were received. Annexures Nil

Formerly managed by Lehman Brothers

Date Description Securities

UBS Cash Management

TrustTotal

Book Value30/06/2015 Balance brought forward 51,822.15 51,822.1515/07/2015 CBA FRN - quarterly interest 8,300.00 60,122.1520/07/2015 UBS Fee - Jun'14 management fee (62.16) 60,059.99

0.00 60,059.99

Formerly managed by Oakvale Capital

SecuritiesBlackrock

Managed FundTotal

Book Value30/06/2015 Balance brought forward 640,500.00 640,500.00

640,500.00

640,500.00 0.00

Direct InvestmentsSecurities Total

30/06/2015 Balance brought forward 1,000,000.00 1,000,000.00

1,000,000.00


Item No. D3 Page 13


Subject:

DELIVERY PROGRAM 2013 TO 2017 & OPERATIONAL PLAN 2014/15 (DPOP) QUARTERLY PROGRESS REPORT JUNE 2015 AGAINST GOAL 10 - WORKING TOGETHER AND GOAL 11 - A WELL MANAGED COUNCIL (FY230)

Author: Michelle Phair, Team Leader Corporate & Financial Planning Approvers: Stephen Dunshea, Director - Corporate Services

Tom O'Hanlon, Director - Technical Services File No: 15/93366 Reason for Report: To review the status of the Priorities and Actions in Council’s Delivery

Program 2013 to 2017 and Operational Plan 2014/15 for the three months ending 30 June 2015.

Recommendation: THAT the June 2015 Quarterly Progress Report on Goal 10 (Working together) and Goal 11 (A well-managed Council) of Council’s Delivery Program 2013 to 2017 and Operational Plan 2014/15 be received and noted. Background: Council adopted its Delivery Program 2013 to 2017 and Operational Plan 2014/15 (DPOP) in June 2014 in accordance with the Integrated Planning and Reporting (IPR) Legislation for NSW Local Government. The Delivery Program and Operational Plan are two of the key strategic planning documents that comprise Council’s IPR Framework. It is a requirement under the IPR Legislation that Council report on the progress of its Delivery Program at least every six months. In response to this requirement, and in order to ensure that Council’s reporting to the community is transparent, timely and manageable under the legislation, progress reports on the DPOP are presented to Council quarterly for the periods ending 30 September, 31 December, 31 March and 30 June each year. The framework for quarterly progress reports is consistent with the structure of the Delivery Program and Operational Plan which have been developed around the following interrelated themes and supporting goals: Theme: Community well-being Goal 1: A connected and harmonious community. Goal 2: A supported community. Goal 3: A creative and vibrant community. Theme: Quality places and spaces Goal 4: Well planned neighbourhoods. Goal 5: Liveable places. Goal 6: Getting around. Theme: A healthy environment Goal 7: Protecting our environment. Goal 8: Sustainable use of resources.


Item No. D3 Page 14

Theme: Local prosperity Goal 9: Community focused economic development. Theme: Community leadership and participation Goal 10: Working together. Goal 11: A well-managed Council. Council’s Quarterly DPOP Progress Report for the period 1 April to 30 June 2015 for Goals 10 and 11, being the goals most relevant to the Corporate and Works Committee, is provided as Annexure 1. Progress comments for all DPOP Actions are provided in the tables of Annexure 1. Council officers provide updates on these comments on an ongoing basis for internal management purposes, with the comments collated at the end of the quarter for reporting to Council and the community. A tick in the final column of the tables in Annexure 1 headed “Updated Comments” indicates that the comments relating to that action have been updated since the previous quarterly report to Council. The purpose of the tick is to enable Councillors and other readers of the report to easily identify where an action status has been updated. The Corporate & Works Committee has also previously requested that statistics be included in the Quarterly Progress Reports summarising the status of DPOP Actions. The Committee will note the inclusion of this information in the introductory pages of Annexure 1. Adopted notices of motion and other decisions of the Council: As previously reported to Council, adopted Notices of Motion (NOM) and other decisions of the Council which are strategic and/or project based are included as additional actions in the DPOP and reported on through the Quarterly Progress Report. To further assist with tracking progress in relation to NOM, Annexure 2 to the Quarterly Progress Report provides progress comments specifically for all NOM. In keeping with good corporate governance practices, the Corporate & Works Committee will track the progress of all NOM through Annexure 2 with separate reports being presented to the Community & Environment Committee and Urban Planning Committee to track relevant NOM. The following table presents a summary of the status of all NOM as at 30 June 2015: Corporate

& Works Committee

Community & Environment Committee

Urban Planning

Committee

TOTAL

Total NOM at 31 March 2015 4 4 6 14 Less Reported as Completed (0) (0) (0) (0) Reported as ‘In Progress’ 4 4 6 14 New NOM – June Quarter 6 2 1 9 Total NOM at 30 June 2015 10 6 7 23 Less Reported as Completed (4) (1) (1) (6) Reported as ‘In Progress’ 6 5 6 17


Item No. D3 Page 15

2014/15 DPOP Year-end progress statistics: The Corporate & Works Committee may also wish to note the following information regarding the status of Actions at 30 June 2015 across all Goals in the 2014/15 DPOP. A total of 136 Actions were reported to the various Committees during 2014/15. The following chart presents the status of Actions as at 30 June 2015.

63% of DPOP Actions for all Committees were completed or still in progress; 33% noted as ongoing; and 4% not commenced.

Actions which were in progress and/or not commenced as at 30 June 2015 will be carried forward into the 2015/16 financial year and will be identified in the first quarter reporting to the respective Committees for the 2015/16 financial year. Conclusion: It is recommended that the June 2015 Quarterly Progress Report against Goal 10 (Working together) and Goal 11 (A well-managed Council) of Council’s Delivery Program 2013 to 2017 and Operational Plan 2014/15, be received and noted. Annexures 1. DPOP Quarterly Progress Report June 2015 for Goal 10 (Working Together) and Goal

11 (A well-managed council)

2. Notice of Motion Status Report - June 2015

44%

19%

33%

4%

DPOP Action Status as at 30 June 2015

Completed

In Progress

Ongoing

Deferred

Not Commenced


Annexure 1 DPOP Quarterly Progress Report June 2015 for Goal 10 (Working Together) and Goal 11 (A well-managed council)

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Annexure 2 Notice of Motion Status Report - June 2015 Page 35


Item No. D4 Page 49


Subject: COUNCIL BUSINESS/COMMERCIAL CENTRE CLEANING SERVICE

Author: Mark Ramsay, Manager - Civil Operations Approver: Tom O'Hanlon, Director - Technical Services File No: 15/66069 Reason for Report: Respond to a resolution of Council Recommendation: THAT Council continues to undertake the street cleaning and business centre functions using in house staff and seek to undertake the improvements to the existing service identified by Abraxa Management Consulting to ensure our current service is maintained at optimal levels. Background: Resolution from 14 October 2013: 1. That a preliminary internal report be prepared, as a matter of urgency, and provided to the

appropriate committee, investigating the potential to outsource Council’s business/commercial centre cleaning service to a professional cleaning company, the report should contain the following: (a) the feasibility of outsourcing said service. (b) the potential benefit to the community and Council’s commercial areas including a cost

benefit analysis of outsourcing the service. (c) the short term costs associated with outsourcing this service. (d) the long term costs saving associated with the outsourcing of this service. (e) establishing a quality level of service for what is currently provided for cleaning in

those business areas to establish a baseline service level. 2. That the report is to provide data around the current service levels council provides,

including quality and service standards, intervention levels, frequency of service, current costs attributable to the in-house service, the feasibility of outsourcing the service, and a comparison of service standards against like services in other council areas.

Proposal: As part of Technical Services ongoing program of operational review, management decided the questions being asked by the NOM should be considered as part of a broader review of the Business Centre and Street Cleaning operations. Although the NOM specifically referred only to business centre cleaning, it was decided that as the business centres cleaning and general street cleaning functions are so closely related and intertwined, that the review and this report should consider both. In 2014 Council employed the services of Abraxa Management Consulting (‘the Consultant’) to compare: The current operation to identify the service levels, frequency and standard of work and

establish a baseline service level Benchmark the service against external service providers


Item No. D4 Page 50

Identify the costs and benefits to the Council and the community of outsourcing the services provided

Identify opportunities for improvement Current Operations Business Centres Our Business Centre teams consist of 21 staff and are currently responsible for providing the following services: Cleaning of all business centres and open carparks, including the road carriage, kerb and

gutter and footpaths Twice daily emptying and cleaning of all public litter bins within the business centres,

residential streets and parks. Removal of posters within business centres Cleaning of bus shelters and street furniture Repair and maintenance of street furniture and footpaths within business centres Cleaning and raking of beaches and promenades Graffiti removal Emptying and cleaning cigarette butt out bins Hard rubbish collection Maintenance of planter boxes Actioning customer requests The Consultant’s report rated the performance of both the Business Centres and Street Cleaning sections against the following key indicators; Work and resource planning Productivity Team supervisor/manager Cleaning methods Technology and equipment Service standards Overall Within the Business Centres, three of these indicators were rated as requiring minimal adjustment and three as good performance

The man impediment to the effectiveness of this service was identified as being the resources required to maintain the increase in the number of public place litter bins and the increase in paved business centre areas such as Edgecliff Rd Edgecliff, Kiaora Lands and William Street Paddington. Street Cleaning Our Street Cleaning teams consist of 18 staff and are responsible for providing the following services Cleaning of all residential streets, laneways and walkways Collection of hard rubbish Cleaning of jetties and slipways Remove posters Actioning Customer requests


Item No. D4 Page 51

The Consultant's report rated the performance of the Street Cleaning section as one good performance, four as requiring minimal improvement and two as requiring improvement. The main impediment to this service was identified as the need to transfer resources from street cleaning duties to hard rubbish collection on Mondays, Tuesdays and regularly on Wednesdays. The recommendations for the operational improvement in the Business Centres and Street Cleaning operations are under consideration by management. Feasibility and Costs of Outsourcing The report has identified that there is not a highly identified market capability for street cleaning services due to the limited number of Councils that tender out these services. The early experience with market testing of street cleaning was in Melbourne during the early years of competitive tendering from around 1995 to 1998. The City of Melbourne is the only Council to have continued with the tendering of its CBD and residential street cleaning. In NSW, the only Council to consider the whole of service contracting is the City of Sydney. This service has been competitively tendered on at least three occasions and each time the in-house team have been successful. There are a small number of Councils that use external contractors for special events, or limited cleaning runs based on hourly rate or per clean rates. There are typically two types of contracts that are considered for street cleaning services: Output based performance contracts where the Council determines a standard of service

levels, with the tenderer expected to develop a works program, resource model and frequency to meet the required standard.

Input based resource contracts where the focus is on using the contractor’s resources to meet the works program developed by the Council. The tenderer will then provide the resources at an agreed schedule of rates.

Both of these contracts provide a different risk profile to Council and will potentially involve different organisations to carry out the works. In benchmarking the costs of our in-house service against the market using an input based contract, the following assumptions have been made: A standard 6 hour productive day which equates to 1,440 hours per year All equipment is of a comparable standard to WMC Rates are based on a large mechanical street sweeper Pricing by companies reflects normal market conditions

Annual Costs Benchmark $ Woollahra Council $

Labour 72,700 75,000 Plant/running Costs 72,300 59,500

Corporate Costs @ 10% 14,500 13,500 Profit @ 7% 11,200 0

Total 170,700 148,000 Unit based on 1,440

hours 119.00 103.00


Item No. D4 Page 52

In benchmarking the costs of our in-house service against the market using an output based contract, the following assumptions have been made: The cleaning method is delivering an effective outcome for Council and based on the

consultants experience they have assessed this as being in line with industry best practice. All equipment is new or comparable with that currently used by WMC No provision for WMC staff redundancy is made within these costings Staff costs are based on current enterprise agreements

Business Centre Cleaning Annual Costs Benchmark $ Woollahra Council $

Labour 1,825,200 1,882,9000 Plant/Running Costs 758,000 631,7000

Corporate costs @10% 258,3000 251,5000 Profit @7% 198,9000 0

Total 3,040,4000 2,776,1000

Residential Street Cleaning Annual Costs Benchmark $ Woollahra Council $

Labour 1,228,6000 1,419,500 Plant/Running Costs 1,128,8000 940,6000

Corporate costs @10% 235,700 236,000 Profit @7% 181,500 0

Total 2,774,6000 2,596,100 The consultants have also assessed the short term cost of the tender preparation and negotiations at $105,000 - $150,000 in the first 6 months and the long term recurrent costs of employing a Contract Manager to supervise the contract at $100,000. Additional funds for the works requested that are variations to the original contract should be allocated at $200,000 per annum. Redundancy payments to the affected staff will depend on the length of service for each staff member, but will be in the vicinity of $2.9m. It is noted that this figure reflects the long term employment of many of the staff. Conclusion: The report from the Consultant has identified that there is little scope for the introduction of outsourcing all the functions that are carried out by our Business Centre and Street Cleaning teams. It has also identified that the service level currently provided is both equivalent to anything that the private sector could provide and also at comparable if not reduced costs. The staff involved in this service are also regularly called on to complete works outside of their normal day to day functions such as cleaning up after events such as the City to Surf, storm clean up and backfilling for critical functions such as waste collection. The additional costs involved in making these existing staff redundant and the variations to the contract that would be incurred due to these extra works would significantly increase the costs of outsourcing this function.


Item No. D4 Page 53

It is recommended that Council does not outsource this function but undertakes the improvements to the existing service identified by the Consultant to ensure our current service is maintained at optimal levels. Annexures Nil


Item No. R1 Page 55

Item No: R1 Recommendation to Council

Subject: CAPITAL WORKS PROGRAM STATUS REPORT - JUNE 2015 INCLUDING 2014/15 BUDGET REVOTES & ROLLOVERS (FY230)

Authors: Michelle Phair, Team Leader Corporate & Financial Planning Trang Banfield, Team Leader Financial Operations

Approvers: Stephen Dunshea, Director - Corporate Services Don Johnston, Chief Financial Officer

File No: 15/93424 Reason for Report: To provide the Committee with an update on the status of projects in the

2014/15 Capital Works Program and to report on the 2014/15 Budget revotes and rollovers.

Recommendation: A. The Quarterly Progress Report – Capital Works Program for June 2015 be received and noted. B. The Items identified as “Recommended for Revote” in Annexures 1 and 2 be revoted into the

2015/16 Budget. 1. Background: As part of Council’s quarterly reporting under the Integrated Planning and Reporting Framework this report is presented to the Corporate & Works Committee detailing the status of projects in the Capital Works Program. Councillors will note that, consistent with the approach adopted for quarterly reporting on the Priorities and Actions contained in Council’s Delivery Program and Operational Plan, the Capital Works Program Status Report is also presented by Theme, Goal, Strategy and Priority. Specific projects supporting the Priority are then listed in the table under the heading of “Actions”. Also consistent with the format of quarterly reporting on the Priorities and Actions, the report contains a column headed “Updated Comment”. As can be seen some actions have a tick which appears in this column to indicate that the comments relating to that particular project have been updated since the previous quarterly report. This will enable Councillors and other readers of the report to easily identify where a project’s status has been updated. The Capital Works Program Status Report to the end of June 2015 report shows the current status of capital works projects, provides additional progress comments, identifies those projects either rolled over into 2015/16 or recommended for revote, and further provides a comparison of expenditure to date against the total project budget to the end of the June quarter. As a brief explanation of the rollovers and revotes process; Council adopts an annual budget for the provision of works and services and the delivery of projects each year. At the end of each year the votes of expenditure lapse, except as provided in Clause 211 of the Local Government (General) Regulation 2005, whereby:


Item No. R1 Page 56

(3) All such approvals and votes lapse at the end of a council’s financial year. However, this subclause does not apply to approvals and votes relating to: (a) work carried out or started, or contracted to be carried out, for the council, or (b) any service provided, or contracted to be provided, for the council, or (c) goods or materials provided, or contracted to be provided, for the council, or (d) facilities provided or started, or contracted to be provided, for the council,

before the end of the year concerned, or to the payment of remuneration to members of the council’s staff.

There are instances where projects are commenced toward the end of a financial year but not completed. Where this is the case the budget allocation remaining can be rolled into the new financial year for the completion of the project. As the Regulation does not require these amounts to be revoted, this has been done administratively. Where the project has not been commenced Council is required to formally revote the budget allocation into the new financial year budget. Expenditure relating to the 2014/15 financial year has been finalised. This report makes a recommendation to revote budget allocations into the 2015/16 Budget for projects not commenced at 30 June 2015. Discussion: CAPITAL WORKS PROGRAM: The Capital Works Program Status Report for the end of June 2015 is attached as ANNEXURE 2. Summary of Capital Works Program Rollovers and Revotes The table below summarises the rollovers and revotes from the Capital Works Program by Goal and Strategy.

2014/15 Budget

$

2014/15 Actual

$

2014/15 Budget

Remaining $

2014/15 Roll-overs

$

Completed or In

Progress At 30 June

$

%

Revotes Recom-mended

$

A liveable place 5.1 Enhance local community, cultural and recreation facilities to become more attractive, integrated, safe and accessible

482,649 166,970 315,679 277,027 474,649 98 8,000

5.3 Provide attractive, accessible, connected and safe parks, sportsgrounds, beaches and other public spaces

2,243,055 1,050,291 1,192,764 1,014,631 2,194,655 98 40,000

5.6 Reduce impacts of local flooding and improve floodplain risk management

698,878 477,079 221,799 240,2991 698,878 100

5.7 Renew and upgrade infrastructure including roads, footpaths, stormwater drains and seawalls

6,467,962 3,830,406 2,637,556 2,642,917 6,467,962 100


Item No. R1 Page 57

2014/15 Budget

$

2014/15 Actual

$

2014/15 Budget

Remaining $

2014/15 Roll-overs

$

Completed or In

Progress At 30 June

$

%


$

Moving around 6.1 Facilitate a network of accessible and safe transport options

955,997 534,958 421,039 411,685 955,997 100

6.2 Improve the management of public parking on-street and off-street

144,500 135,348 9,152 0 144,500 100

Protecting our environment 7.1 Protect natural landscapes, systems and biodiversity.

277,036 189,921 87,115 70,594 277,036 100

Sustainable use of resources 8.1 Reduce greenhouse gas emissions and ecological footprint

11,660 6,491 5,169 5,169 11,660 100

8.3 Encourage and assist our community to be leaders in waste management and resource recycling.

334,973 132,165 202,808 78,1762 334,973 100

Community focused economic development 9.3 Maintain a high quality public domain to support and promote local business

2,427,126 2,047,281 379,845 376,311 2,427,126 100

A well managed Council 11.4 Maintain Council’s strong financial position 24,298,360 14,570,182 9,728,178 9,675,119 24,283,360 100 15,000

11.5 Deliver high quality services that meet customer expectations

810,388 137,008 673,380 0 150,388 19 660,0003

11.6 Minimise risk for Council and the community. 7,210 7,210 0 0 7,210 100

39,159,794 23,285,310 15,874,484 14,791,928 38,428,394 98 723,000 1The amount by which the Rollover exceeds Budget Remaining is covered in other Strategies. 2 The amount by which the Rollover is less than Budget Remaining is due to funding allocated to other projects in Operating Budget & Operating Capital Budget. 3 The revote amount of $660k comprises $400k server implementation pending new Double Bay Library, $160k telephone system replacement and $100k fibre link from Council Chambers to Hugh Latimer Centre. In summary, 98% of capital projects (in dollar values) were completed or in progress at 30 June 2015. This represents a slight reduction from the 99.8% result achieved last year and is due to the timing of the related information technology projects referenced in footnote 3 above. Funding for projects in progress at 30 June 2015 has been rolled forward into the 2015/16 Budget. Any Reserve funding for projects completed for less than budgeted has been returned to the respective Reserves at year end. The Capital Works Program revotes and rollovers totalling $15,514,928 are funded from the following sources:


Item No. R1 Page 58

Source

Amount $

Grants 831,905 Environmental & Infrastructure Renewal Levy Reserve 1,945,756 Section 94A 624,520 General Reserve 231,500 Property Reserve 5,062,873 Unexpended Loans 4,777,582 Revotes & Rollovers Reserve 481,243 Section 94 31,272 Other Reserves & Contribution 55,301 Working Funds 1,472,976 15,514,928

OPERATING AND OPERATING CAPITAL BUDGETS: There were also a number of operating budget projects and operating capital replacements not completed as at 30 June 2015 which also require rolling over or revoting. Details of these items are provided in ANNEXURE 1. The table below summarises the specific budget provisions for the rollovers and revotes from the Operating and Operating Capital Budgets.

2014/15 Budget

$

2014/15 Actual

$

2014/15 Budget

Remaining $

2014/15 Roll-overs

$


$ Community Services 837,552 597,717 239,835 239,835 Corporate Services 340,100 266,721 73,379 27,416 22,500 Technical Services 1,929,666 899,503 1,030,163 926,223 44,162 Planning & Development 280,000 6,050 273,950 93,950 180,000 General Manager 115,000 56,600 58,400 13,400 45,000 3,502,318 1,826,591 1,675,727 1,300,824 291,662

The Operating and Operating Capital Budgets revotes and rollovers totalling $1,592,486 are funded from the following sources:

Source

Amount $

Grants 34,204 Reserves 786,496 Plant & Vehicle Sales 142,987 Working Funds 628,799 1,592,486


Item No. R1 Page 59

Conclusion: The status of each of the projects in Council’s 2014/15 Capital Works Program has been updated by the relevant Manager with details provided for the information of the Committee in ANNEXURE 2. At the end of each financial year the budget provisions for projects that have not commenced, or are not contracted to commence, lapse. The budget provisions for these projects are required to be revoted into the new financial year budget, by resolution of Council. Budget provisions for projects in progress at 30 June 2015 do not lapse and, therefore, have been rolled into the new financial year administratively. Notations of the budget allocations rolled over and recommendations for revote into the 2015/16 Budget have also been highlighted in ANNEXURE 2. Overall 98% of the Capital Works Program (in dollar values) was completed or in progress at 30 June 2015. The report also details a number of projects recommended for revote in both the Operating and Operating Capital Budgets. Details of these rollovers plus the revote recommendations are provided in ANNEXURE 1. It is recommended that the Items identified as “Recommended for Revote” in ANNEXURE 1 and ANNEXURE 2 be revoted into the 2015/16 Budget. Annexures 1. 2014-15 Operating and Operating Capital Budgets Rollovers & Revotes

2. Capital Works Program 2014-15 - June 2015 Quarter including rollovers revotes


Annexure 1 2014-15 Operating and Operating Capital Budgets Rollovers & Revotes

Page 60



Page 61



Page 62


Annexure 2 Capital Works Program 2014-15 - June 2015 Quarter including rollovers revotes

Page 63



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Item No. R2 Page 107


Subject: TENDER SC2797 VILLAGE HIGH ROAD, VAUCLUSE - CIVIL INFRASTRUCTURE WORKS.

Author: Sam Badalati, Project Manager - Civil Works Approvers: Jake Matuzic, Manager - Capital Projects

Tom O'Hanlon, Director - Technical Services File No: 15/106161 Reason for Report: To recommend to Council the acceptance of a tender Recommendation: A. THAT Council enter into a Contract with Citywide Civil Engineering (NSW) Pty Ltd for the

Village High Road, Vaucluse – Infrastructure Works Project for the sum of $421,220.56 (excluding GST) plus any provisional costs.

B. THAT successful and unsuccessful tenderers be advised accordingly. Background Council included the reconstruction of Cambridge Avenue and Village High Road between Kings Road and 27 Village High Road, Vaucluse as part of its Capital Works Program. The area of works to be carried out under this contract is shown on the aerial photograph below:

Aerial showing Cambridge Avenue and Village High Road, Vaucluse.

Work Area



Works to be constructed under the Contract include an upgrade to the existing stormwater system in Village High Road and Cambridge Avenue which will convey stormwater to the existing stormwater outlet in Parsley Bay at Hopetoun Avenue. The stormwater upgrade works were identified as part of a flood study and provide further improvements that alleviate the flooding experienced in large rainfall events in the lower parts of the catchment, particularly in The Crescent, Vaucluse. In addition to the stormwater upgrade works, the contract also includes road pavement milling, excavation and correction and repair, removal, replacement of sections of kerb and gutter, construction of sections of concrete footpaths, driveways and kerb ramps, relocation of Telstra pits as necessary and adjustment of services covers to suit new footpath and road pavement levels. Invitation to Tender Tender No. SC2797 for reconstruction work in Village High Road, Vaucluse was first advertised in the Tenders section of the Sydney Morning Herald commencing on Tuesday 30 June 2015, and in the Wentworth Courier on Wednesday 1 July 2015. A pre-tender meeting was held on Wednesday 15 July 2015. All tenderers who had registered their interest in the tender were invited to attend. Questions raised by tenderers were answered and a record of the questions and answers was circulated to all tenderers who attended, or who registered on Council’s website. Tenders for this project closed at 2:30pm on Thursday 23 July 2015. Seven (7) tenders were received by the closing date and time. No late tenders were received. Table 1 TENDERER Citywide Civil Engineering (NSW) Pty Ltd Starcon Group Pty Ltd Downer EDI Works Stateline Asphalt Pty Ltd Northshore Paving Civil Works (NSW) Pty Ltd Civeco Pty Ltd

Tender Assessment The tender assessment panel comprised Mr David Byatt as the convenor and independent member of the tender panel, Mr Michael Casteleyn as the Commissioning Officer, and Mr Sam Badalati as the Project Manager. Council has resolved that a probity adviser should be included during the tender assessment stage for high risk, high value or sensitive projects. This project was deemed not to require a probity adviser. Prior to the tender closing date, the tender panel agreed on the following weightings that would be used against the advertised selection criteria:



Cost and Pricing 45% Demonstrated experience and capacity 25% Program and methodology 15% Management systems (OHS, quality and environment) 10% Duration of works 5%

The tender panel carried out an initial evaluation of the tenders and deemed all tenders to be complying. The cost of the tenders is provided in Table 2 below. The tenderers added the provisional amount schedule pricing to their lump sum tender price, which does not form part of the lump sum price. The price shown in Table 2 does not include provisional amount pricing. Table 2 – Tenderers and Prices

TENDERER LUMP SUM

TENDER PRICE (ex GST)

TIME

(Weeks)

Citywide Civil Engineering (NSW) Pty Ltd $421,220.56 10 Starcon Group Pty Ltd $486,962 15 Downer EDI Works $571,476.95 15 Stateline Asphalt Pty Ltd $559,348 10 North Shore Paving Pty Ltd $602,557.65 16 Civil Works (NSW) Pty Ltd $525,270 16 Civeco Pty Ltd $669,410 10

The tenders were assessed in accordance with the selection criteria stated in the tender documents. Clarification was sought on matters that were found to be unclear or incomplete in one or more tenders. The tenders were given a preliminary score on each item of the selection criteria, which resulted in a total score out of 100. Tenderers were ranked in accordance with their scores. The final scores and rankings are shown in table 3.



Table 3 - Assessment of highest ranked tenderers

CRITERIA

TENDERER

Dem

onst

rate

d E

xper

ienc

e an

d C

apab

ility

(25%

)

Prog

ram

and

m

etho

dolo

gy (1

5%)

Man

agem

ent S

yste

ms

(OH

& S

, E

nvir

onm

enta

l and

Q

ualit

y) (1

0%)

Dur

atio

n of

Wor

ks

(5%

)

Sub

Tot

al N

on P

rici

ng

Cri

teri

a

Cos

t and

Pri

cing

(4

5%)

T

OT

AL

SC

OR

E

(100

%)

Citywide Civil Engineering (NSW) Pty Ltd 21.88 15 8.75 5 50.63 45 95.63 Starcon Group Pty Ltd 17.19 13.75 7.50 3.33 41.77 38.92 80.69 Downer EDI Works 21.09 12.50 10 3.33 46.92 33.17 80.09 Stateline Asphalt Pty Ltd 17.97 15 7.50 5 45.47 33.89 79.36 North Shore Paving Pty Ltd 21.88 8.75 9.38 3.13 43.14 31.46 74.60 Civil Works (NSW) Pty Ltd 20.31 6.25 7.50 3.13 37.19 36.09 73.28 Civeco Pty Ltd 7.03 0 5.63 5 17.66 28.32 45.98

Note: a score of 0 is given where no information is provided. 1. Cost and Pricing: the lowest price is deemed to achieve 100% of the score for this criterion. The lowest price is

divided by the other tenderers’ prices to give their respective scores as percentages. 2. Demonstrated Experience and Capability: Information was requested pertaining to size and value of past works,

types of works performed and complexity of past works. From this information the tender panel assessed the level of demonstrated experience for each tenderer

3. Program & Methodology: Information was requested pertaining to project program, construction management plan, traffic management plan and environmental management plan. From the information received the evaluation panel assessed the contractor’s ability to sequentially carry out the works.

4. Management Systems (OHS, Environmental and Quality): Assessment of Quality, Environment controls and OH & S, scored according to comprehensiveness of documentation and evidence of it being applied to past projects. The highest scores were allocated for systems with independent accreditation

5. Duration of Works: The shortest time is deemed to achieve 100% of the score for this criterion. The shortest time is divided by other tenderer’s times to give their respective scores as percentages

Comment The two highest scoring tenders are Citywide Civil Engineering (NSW) Pty Ltd and Starcon Group Pty Ltd. Both of these companies submitted competitive quotations. Both of these contractors are known to Council having previously completed projects for Council. As such no post-tender interviews were required. 1. Citywide Civil Engineering (NSW) Pty Ltd Citywide Civil Engineering (NSW) Pty Ltd tendered the best lump sum price to undertake the works. They also scored best on non-pricing selection criteria, provided the shortest time to undertake the work and their provisional rate for excavating in rock was less than the second highest scoring tenderer. Citywide Civil Engineering (NSW) Pty Ltd is a small civil construction company that has good experience in this type of works across the local government sector. Citywide Civil Engineering (NSW) Pty Ltd have predominantly completed civil construction works, and have previously completed similar works for Woollahra Municipal Council at Forrest Road, Double Bay. They are currently undertaking work for Council in Salisbury Road, Rose Bay.



Citywide Civil Engineering (NSW) Pty Ltd scored equal highest for the program and methodology, and submitted a duration of works of 10 weeks, which was considered well thought out and achievable. They have a well-documented quality management system including independent accreditation that ensure that all Work Health and Safety, Environment and Quality Assurance controls are adequately addressed during construction. Starcon Group Pty Ltd Starcon Group Pty Ltd is a new company just registered this year with 6 full time employees. Starcon Group Pty Ltd was established by Tower Group Project Pty Ltd as its subsidiary. Tower Group Project Pty Ltd was formed in 2007. It now has 25 full and part time staff with an average annual turnover of $5M. Starcon Group’s Pty Ltd managing director and project manager has over 10 years’ experience working as a project manager for Civil Construction Pty Ltd and Kingston Industries, two larger civil engineering contractors operating in Sydney. The price submitted by Starcon Group Pty Ltd was on this occasion too high to consider further. Identification of Income and Expenditure: All figures below exclude GST. The total budget allocation for this project is $530,287. To date $40,666 has been spent on survey and design, project management and tendering. The remaining available budget is approximately $490,000. The preferred tenderer’s lump sum price for this project is $421,220.56. The total anticipated funding required for this project is estimated to be $451.220.56. This includes $30,000 for provisional amounts including any rock excavation required and potential costs associated with adjustments to Telstra pits and other services and project management costs. There are sufficient funds to cover the cost of construction at the highest ranked tenderer’s price, plus any additional project costs. Conclusion The tender panel recommends that Council enter into a Contract with Citywide Civil Engineering (NSW) Pty Ltd for the Village High Road, Vaucluse – Infrastructure Works Project for the sum of $421,220.56 (excluding GST) plus any provisional costs. Annexures Nil




Subject: TENDERSC2852 NEW SOUTH HEAD ROAD, VAUCLUSE PUBLIC DOMAIN WORKS.

Author: Sam Badalati, Project Manager - Civil Works Approvers: Jake Matuzic, Manager - Capital Projects

Tom O'Hanlon, Director - Technical Services File No: 15/106170 Reason for Report: To recommend to Council the acceptance of a tender. Recommendation: A. THAT Council enter into a Contract with KK Civil Engineering Pty Ltd for the New South

Head Road, Edgecliff – Public Domain Works Project for the sum of $215,750 (excluding GST) plus any provisional costs

B. THAT successful and unsuccessful tenderers be notified. Background Council has included the reconstruction of New South Head Road between Ocean Avenue and Darling Point Road, Edgecliff as part of its Capital Works Program. The area of works to be carried out under this contract is shown on the aerial photograph below:

Aerial showing New South Head Road, Edgecliff.

Work Area



Works to be constructed under the Contract include the upgrade of the footpath in the business centre opposite the Edgecliff Centre from concrete paths to clay pavers which match the pattern and colour that has been adopted for the business centre area. Works also include the construction of road pavement work on part of the road shoulder, sections of kerb & gutter reconstruction, reconstruction of driveways and adjustment to service lids and boxes as required. Invitation to Tender Tender SC2852 for reconstruction work in New South Head Road, Edgecliff was first advertised in the Tenders section of the Sydney Morning Herald commencing on Tuesday 16 June 2015, and in the Wentworth Courier on Wednesday 17 June 2015. A pre-tender meeting was held on Wednesday 1 July 2015. All tenderers who had registered their interest in the tender were invited to attend. Questions raised by tenderers were answered and a record of the questions and answers was circulated to all tenderers who attended, or who registered on Council’s website. Tenders for this project closed at 2:30pm on Thursday 9 July 2015. Seven (7) tenders were received by the closing date and time. No late tenders were received. Table 1 TENDERER Ally Civil Mansour Paving (Aust.) Pty Ltd KK Civil Engineering Stateline Asphalt Pty Ltd Civil Works (NSW) Pty Ltd Starcon Group Pty Ltd Pave-Link Pty Ltd

Tender Assessment The tender assessment panel comprised Mr David Byatt as the convenor and independent member of the tender panel, Mr Michael Casteleyn as the Commissioning Officer, and Mr Sam Badalati as the Project Manager. Council has resolved that a probity adviser should be included during the tender assessment stage for high risk, high value or sensitive projects. This project was deemed not to require a probity adviser. Prior to the tender closing date, the tender panel agreed on the following weightings that would be used against the advertised selection criteria:

Cost and Pricing 45% Demonstrated experience and capacity 25% Program and methodology 15% Management systems (OHS, quality and environment) 10% Duration of works 5%



The tender panel carried out an initial evaluation of the tenders and deemed all tenders to be complying. The cost of the tenders is provided in Table 2 below. The tenderers added the provisional amount schedule pricing to their lump sum tender price, which does not form part of the lump sum price. The price shown in Table 2 does not include provisional amount pricing. Table 2 – Tenderers and Prices

TENDERER LUMP SUM

TENDER PRICE (ex GST)

TIME

(Weeks)

Ally Civil $198,440 5 Mansour Paving (Aust.) Pty Ltd $210,788.39 8 KK Civil Engineering Pty Ltd $215,750 6 Stateline Asphalt Pty Ltd $225,332 5 Civil Works (NSW) Pty Ltd $238,275 9 Starcon Group Pty Ltd $256,737 13 Pave-Link Pty Ltd $278,330 12

The tenders were assessed in accordance with the selection criteria stated in the tender documents. Clarification was sought on matters that were found to be unclear or incomplete in one or more tenders. The tenders were given a preliminary score on each item of the selection criteria, which resulted in a total score out of 100. Tenderers were ranked in accordance with their scores. Final scores and rankings are shown in table 3. Table 3 - Assessment of highest ranked tenderers

CRITERIA

TENDERER

Dem

onst

rate

d E

xper

ienc

e an

d C

apab

ility

(25%

)

Prog

ram

and

m

etho

dolo

gy (1

5%)

Man

agem

ent S

yste

ms

(OH

& S

, E

nvir

onm

enta

l and

Q

ualit

y) (1

0%)

Dur

atio

n of

Wor

ks

(5%

)

Sub

Tot

al N

on P

rici

ng

Cri

teri

a

Cos

t and

Pri

cing

(4

5%)

T

OT

AL

SC

OR

E

(100

%)

KK Civil Engineering Pty Ltd 23.44 15 9.38 4.17 51.99 41.39 93.38 Mansour Paving (Aust.) Pty Ltd 18.75 12.5 7.50 3.13 41.88 42.36 84.24 Stateline Asphalt Pty Ltd 17.19 13.75 7.50 5 43.44 39.63 83.07 Civil Works (NSW) Pty Ltd 20.31 8.75 7.50 2.78 39.34 37.48 76.82 Starcon Group Pty Ltd 17.19 13.75 7.50 1.92 40.36 34.78 75.14 Pave-Link Pty Ltd 21.09 10 7.50 2.08 40.67 32.08 72.75 Ally Civil 11.72 0 2.50 5 19.22 45 64.22



1. Cost and Pricing: the lowest price is deemed to achieve 100% of the score for this criterion. The lowest price is divided by the other tenderers’ prices to give their respective scores as percentages.

2. Demonstrated Experience and Capability: Information was requested pertaining to size and value of past works, types of works performed and complexity of past works. From this information the tender panel assessed the level of demonstrated experience for each tenderer




Comment The two highest scoring tenders are KK Civil Engineering Pty Ltd and Mansour Paving (Aust) Pty Ltd. Both of these companies submitted competitive quotations. 1. KK Civil Engineering Pty Ltd KK Civil Engineering Pty Ltd is a small civil engineering company established in 2001 primarily to cater for civil infrastructure works for local councils, state government authorities and utility authorities. KK Civil Engineering Pty Ltd have undertaken civil engineering and construction projects in the public area and private area such as earthwork operations, road and pavement construction, kerb and gutter works, sewer and stormwater drainage works. They have a road-works and drainage division, a landscaping & paving division, a footpath construction division and a maintenance & restorations division. KK Civil Engineering Pty Ltd is ISO 14001 compliant for Environmental Management Systems, ISO 9001- 2008 for Quality Management systems and NSW Government – OHS Management Systems Guidelines compliant and accredited with Sydney Water Corporation. KK Civil Engineering Pty Ltd have completed projects for a number of Councils including Randwick Council, Hurstville Council, Sutherland Council and Canterbury Council. On all of these projects they have shown good standard of workmanship and quality, and are very aware of safety issues on the worksite. KK Civil Engineering Pty Ltd has also successfully completed road infrastructure works at Vaucluse Road, Vaucluse in 2013 for Council and Military Road Watsons Bay in 2014. KK Civil Engineering Pty Ltd are also a preferred contractor on Council’s Minor Works Contract and have carried out various civil infrastructure works in the municipality. The tender panel considered that KK Civil Engineering Pty Ltd has sufficient capacity to undertake the works and have good understanding of traffic and pedestrian management required for the works. KK Civil Engineering Pty Ltd has demonstrated that they are a capable contractor, completing projects they have been awarded on time, on budget and they have demonstrated good communication and interaction with the residents around the work sites. KK Civil Engineering Pty Ltd indicated that they can commence works on site early September 2015.



2. Mansour Paving (Aust) Pty Ltd Mansour Paving (Aust) Pty Ltd is a small paving company branching out to carry out smaller civil engineering works. The company has not been previously used by Council. Mansour Paving (Aust) Pty Ltd did not score has high as K K Civil Engineering Pty Ltd and while their price is approximately $5,000 lower than K K Civil Engineering’s Pty Ltd price their non pricing score was lower but more importantly their time to carry out the work of 8 weeks was 2 weeks more than K K Civil Engineering’s Pty Ltd time at 6 weeks. The tender panel considered time to be an important factor in the award of this work as it is important to minimise the disruption to the businesses and pedestrians on such a highly utilised section of New South Head Road located opposite Edgecliff Train Station and bus nodes. On this basis, Mansour Paving (Aust) Pty Ltd was not considered further. Identification of Income and Expenditure: All figures below exclude GST. The total budget allocation for this project is $333,359. To date approximately $7,626 has been spent on survey and design and project management. The remaining available budget is approximately $325,000. The preferred tenderer’s lump sum price for this project is $215,750. The total anticipated funding required for this project is estimated to be $270,750. This includes $55,000 for the supply and delivery of pavers, project management and other provisional items such as the adjustments to Telstra pits and other services. There are sufficient funds to cover the cost of construction at the highest ranked tenderer’s price, plus additional project costs. Conclusion The tender panel recommends that Council enter into a Contract with KK Civil Engineering Pty Ltd for the New South Head Road, Edgecliff – Public Domain Works Project for the sum of $215,750 (excluding GST) plus any provisional costs. Annexures Nil




Subject: TENDER SC2868 ROSE BAY PEDESTRIAN CYCLE SHARED PATH PROJECT

Author: Rod Ward, Project Manager Open Space Approvers: Jake Matuzic, Manager - Capital Projects

Tom O'Hanlon, Director - Technical Services File No: 15/108325 Reason for Report: To award Tender SC2868 for construction of the Rose Bay Pedestrian

Cycle Shared Path Recommendation: A. THAT Council enter into a Contract with Citywide Civil Engineering Pty Ltd for the Rose

Bay Pedestrian Cycle Shared Path Project for the sum of $325,156.12 (excluding GST). B. THAT successful and unsuccessful tenderers be advised accordingly. 1. Background: Council has included the construction of a pedestrian cycle shared pathway along Old South Head Road between O’Sullivan Road and Newcastle Street, Rose Bay as part of its Open Space Capital Works Program for 2015-16. The area of works to be carried out under this contract is shown on the aerial photo below: Location Map and Aerial Photograph

AREA OF WORKS

NEWCASTLE ST

OLD SOUTH HEAD RD

O’SULLIVAN RD

ROYAL SYDNEY GOLF CLUB



2. Proposal: Works to be constructed under the Contract include 825metres of a 2.5metre wide off road shared cycleway along Old South Head Rd Rose Bay, from O'Sullivan Rd to Newcastle Street. The pathway will be constructed of porous asphaltic concrete to allow rain water to permeate through the surface to feed tree roots along the route. Works also include the reconstruction of the Newcastle Street/Old South Head Road intersection to remove the traffic island and realign the Old South Head Road kerb across the existing traffic lane into Newcastle Street to create an acute angle at the road junction forcing traffic to slow down entering Newcastle Street making it safer for pedestrians and/or cyclists crossing there. This will involve road pavement reconstruction, kerb and gutter construction and adjustments to service lids and boxes as required. The Traffic Committee reviewed and approved the proposed design in their meeting of 9 February 2015. 3. Consultation: Under the Woollahra Bicycle Strategy 2009 the route was included in the cycle route network so it is consistent with regional bicycle network planning. During the development of the Woollahra Bicycle Strategy extensive consultation was conducted with local schools and cycling group BIKEast as well as observational counts of cyclists using the route. The route is also identified and included under the Woollahra Park Plan of Management 2013 through which community consultation was extensively undertaken. As part of the development of Rose Bay Pedestrian Trail (RBPT) the proposed route was identified as a heavily used route by pedestrians. As it was identified that despite its heavy use there was no formal path existing so a business case was developed and approved by management for a formal pathway to be constructed under the 2015-16 Open Space Capital Works program. 4. Invitation to Tender Tender SC2868 for the Rose Bay Pedestrian Cycle Shared Path was advertised in the Tenders section of the Sydney Morning Herald commencing on Tuesday 23 June 2015 and in the Wentworth Courier on Wednesday 24 June 2015. A Pre-Tender meeting was held on 8 July 2015 at 10.30am. All tenderers who had registered their interest in the tender were invited to attend. Questions raised by tenderers were answered and a record of the questions and answers was circulated to all tenderers who attended, or who were unable to attend but registered their wish to receive information. Two Addenda’s to the tender was also issued to the attendees and posted on Council’s tender website.

Tenders for this project closed at 2.30pm on Wednesday 15 July. A total of seven tenders were received prior to the closing date and time. All the tenders received by the closing date and time are listed in Table 1:



Table 1 TENDERER Citywide Civil Engineering (NSW) Pty Ltd KK Consultants Pty Ltd T/A KK Civil Engineering Civil Works (NSW) Pty Ltd Collective Civil Pty Ltd Platinum Civil Pty Ltd Ally Property Services Pty Ltd T/A Ally Civil Starcon Group Pty Ltd

5. Tender Assessment The tender assessment panel comprised David Byatt - Purchasing Coordinator, as the convenor and independent member of the tender panel, Caitlin Moffatt - Team Leader Open Space & Rec Planning Officer, the Commissioning Officer, Rod Ward - Project Manager for the delivery of the Project. Council has resolved that a probity adviser should be included during the tender assessment stage for high risk, high value or sensitive projects. This contract was deemed to meet this definition and it was agreed that a probity adviser should be included in the tender process. Ailsa Crammond, Governance Services Coordinator, acted as Probity Adviser. Prior to the closing date, on Wednesday 15 July the tender panel agreed on the following weightings that would be used against the advertised selection criteria: Cost and Pricing 45% Demonstrated experience and capacity 20% Program and methodology 15% Management systems (OHS, quality & environment) 10% Duration of works 10% The tender panel carried out an initial evaluation of the tenders and deemed no tenders to be non-conforming. The tenders deemed conforming and their lump sum prices are listed in Table 2: (Please see next page) Table 2 TENDERER

Lump sum tender price (excl GST)

Time (weeks)

Citywide Civil Engineering (NSW) Pty Ltd $325,156.12 9 weeks KK Civil Engineering $521,533.00 8 weeks Civil Works (NSW) Pty Ltd $548,545.50 10 weeks Collective Civil Pty Ltd $493,409.68 7 weeks Platinum Civil Pty Ltd $694,926.00 12 weeks Ally Civil $447,564.00 8 weeks Starcon Group Pty Ltd $646,608.00 27 weeks



The tenders were assessed in accordance with the selection criteria stated in the tender documents. The tenders were given a preliminary score on each item of the selection criteria, which resulted in a total score out of 100. Tenderers were ranked in accordance with their scores. Final scores and rankings are shown in Table 3. 6. Assessment of highest ranked tenderers Table 3 shows the scores and rankings of all tenders considered. (Please see next page) Table 3

CRITERIA

TENDERER (ranked by total score)

Dem

onst

rate

d E

xper

ienc

e an

d C

apab

ility

(20%

)

Prog

ram

and

m

etho

dolo

gy (1

5%)

Man

agem

ent S

yste

ms

(OH

& S

, E

nvir

onm

enta

l and

Q

ualit

y) (1

0%)

Dur

atio

n of

Wor

ks

(10%

)

Sub

Tot

al N

on

Pric

ing

Cri

teri

a

Cos

t and

Pri

cing

(4

5%)

T

OT

AL

SC

OR

E

(100

%)

Citywide Civil Engineering (NSW) Pty Ltd

15.63 15.00 8.75 8.89 48.27 45 93.27

KK Civil Engineering 13.13 12.50 8.75 10.00 44.38 40.19 84.57 Ally Civil 16.25 0.00 9.38 10.00 35.63 32.69 68.32 Civil Works (NSW) Pty Ltd 16.25 6.25 9.38 8.00 39.88 25.96 65.84 Collective Civil Pty Ltd 13.75 7.50 8.13 8.75 38.13 24.11 62.24 Starcon Group Pty Ltd 13.75 11.25 7.50 2.96 35.46 22.63 58.09 Platinum Civil Pty Ltd 11.88 6.25 6.25 6.67 31.05 21.06 52.11

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

divided by the other tenderers’ prices to give their respective scores as percentages. 2. Demonstrated Experience and Capability: Information was requested pertaining to size and value of past works,

types of works performed and complexity of past works. From this information the tender panel assessed the level of demonstrated experience for each tenderer






7. Comment The two highest scoring tenders are Citywide Civil Engineering (NSW) Pty Ltd and KK Civil Engineering. Both these companies are known to Council having previously completed works for Council. As such no post tender interviews were deemed necessary.

1. Citywide Civil Engineering (NSW) Pty Ltd This company is a small civil engineering company known to Council having successfully complete previous projects and are currently undertaking a civil works project for Council at Salisbury Road. The company is pre-qualified with a number other Councils including Marrickville, Parramatta, Kogarah, Sutherland and Canterbury as well as Roads and Maritime Services, Shell Aviation and Sydney Airport Corporation. Citywide Engineering submitted the lowest price, has a well-documented quality management systems meeting ISO/AS 9001: AS 9001:2000 Quality Management Systems; ISO/AS 14001:1996 Environmental Management Systems and ISO/AS 4801:2001 Occupational & Safety Management Systems and are RMS accredited. The company has both a civil works division and plant hire division so are well resourced. The tender panel considered that Citywide Engineering have sufficient capacity to undertake the works and have a good understanding of the traffic and pedestrian management required for the works. Citywide Engineering has demonstrated that they are a capable contractor completing projects they have been awarded on time and on budget. They have also demonstrated good communication and interaction abilities with Council staff as well as residents. With total project duration of nine weeks it is one week longer than that offered by the other leading tenderer however Citywide clarify this by indicating actual on site works duration is eight weeks, equal to that of the shortest duration offered. Citywide Engineering has indicated that they would be able to undertake the works commencing in September if required with sufficient resources to meet the needs of the project.

2. KK Consultants Pty Ltd T/A KK Civil Engineering

KK Civil Engineering is also a small civil engineering company known to Council having undertaken many civil engineering projects for Council including infrastructure works at Vaucluse Road, Vaucluse in 2013 and Military Road Watsons Bay in 2014 among others. KK Civil Engineering is also a preferred contractor on Council’s Minor Works Contract. They are well known to Council and are considered very capable and could very ably undertake the project in the same time frame as Citywide. Although they have demonstrated they are a very capable contractor this tenderer did not score as highly as Citywide being marked down due to a significant difference in price of $196,376 and not providing the same level of detail regarding the program and methodology for the project compared to Citywide.



8. Tender Assessment Panel Opinion The tender panel is of the opinion that the tender of Citywide Civil Engineering (NSW) Pty Ltd is the most advantageous to Council in terms of value for money, quality of work and the ability to complete the works within an acceptable time frame. 9. Identification of Income & Expenditure: The total budget allocation for this project is $375,000. To date approximately $7,613 has been spent on survey and design and project management. The remaining available budget is approximately $367,000 The preferred tenderer’s lump sum price for this project is $325,156.12 The total anticipated funding required for this project is estimated to be approximately $350,000. This includes approximately $25,000 for project management and other provisional items such as the adjustments to Telstra pits and other services. There are sufficient funds to cover the cost of construction at the highest ranked tenderer’s price, plus additional project costs. 10. Conclusion: The tender panel recommends that Council enter into a Contract with Citywide Civil Engineering (NSW) Pty Ltd for Rose Bay Pedestrian Cycle Shared Path Project for the sum of $325,156.12 (excluding GST). Annexures Nil


Page 125

Political Donations – matters to be considered by Councillors at Meetings

Action Declare a significant non-pecuniary conflict of

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

(Code of Conduct Cl 4.16(b))

Action

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

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

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

4. removing the source of the conflict

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

for you?

(Code of Conduct Cl 4.23)

Action Declare a significant non-

pecuniary conflict of interest, absent yourself from the meeting

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

(Code of Conduct Cl 4.16(b))

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

meeting minutes.

Matter before Committee or

Council Meeting

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

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

election campaign? (Code of Conduct Cl 4.21)

Is the matter before the meeting a Planning Matter?

Action

Participate in debate and vote on the matter

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

campaign?

(Code of Conduct Cl 4.2)

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

meeting minutes.

No

No No

No

Yes

Yes Yes

Yes

Yes

agenda: corporate & works committee date: monday 17 august ... · woollahra municipal council...

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