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FOI 067 1213 Serial 1

590 Orrong Road, Annadale 3143 Tet: +61 392483100 POBox 2500 Fax: +6139248 3096 Malvem VIC 3144 Auslralia Web: www.skmconsuililg.Q)I1I

Paige Davis National Property Manager Defence Support Group Department of Defence 26 Brindabella Circuit Brindabella Park ACT 2600

4 April 2008 Defence In"oice Ltlrl.doc

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Dear Paige

Review of Avalon Airport Major Development Plan

Please find attached a progress invoice for work undertaken on the above project to date. If you have any queries, please contact me on telephone (03) 9248 3062.

Regards

Phone: (03) 92483062

Fax: (03) 9248 3631

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SKM Ms P lige Davis National Property Manager Defence Support Group Department of Defenca 26 Brindab&11a Circuit Brtndabella Park ACT %600

AttentiOn: Ms paige Davia

ASN 37 001 Q14 095 Ter: +()1 391483100 Fax: +() 1 3 9248 30DO Web: www.&lUneonsull!ll\l.cam

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SB022963, 04-Apr-08 S818436

Your Ref:

ofAvalon Airport Major Development Plan AUS AU$

profeuronar "",!ce II! connec\lol! with the abOlle prolrcs

Budget. SKM Proposal dated MlIrch;.;2i008

Cliant~ptance. 11/0312008 ii

SIage 1 Project Inception

Slaga 2 - Review of Draft Major DeveloPment Plan (and 8540dated doa.llnenl.$) (25%)

Slage 2a Slakeholder consultation -lIItIaling sHendance and travel I (fee vsriation)

Total GST Exclualve

SKM Project Manllger-W-Ph:+f13 92483082.

PleaM II1ak8 dlnlCl efT peymenlS 10 tII8 IoIIo";np .eeount: WCStpae Bank. SL L'IOnaras Bnlnm (NSW), 85B: 032.2\17, _nl No.: 20-1187 P1eau amaH your remilUlnCO aG..tce to .rGakln.com.... lIt'd qoJOI611la irr;aIce nulllbef. AlI8ma1Maly. you cen send .. paymenl'" 1M acld_,;above lind qual. III. Invaicanllmbef.orFA)(IO+111200282521. Thankyou.

TtIftmI of Paymetll: Paymomi irt iIoII. an or Win,., lIIe due dale of III. irNoII;e wl\ich i. fou""" dayS a!\ef !he dale of 15_. No St......enl will be "'sued, Intern! II pay8l>lB on o..1'dII

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Australian Government Purchase Order Department or Derence ABN: 68 706 814312

Vendor: 1042081 SINCLAIR KNIGHT MERZ DEFENCE P/L PO Box 2500 MALVERN VIC 3144

ABN: 37001024095

Tel: 03 9248 3334 Fax: 03 9500 1180

Date : 27 Mar 2008 Order No! 4500639405

Your Reference: IQuotation No: Approvod By: Suzene Cohen Contact: Jaz Nikolic Area: CSIG-ID Email: JAZ.NIKOLlC@DEFENCE.GOV.AU Tel: 02 6268532 Fax: Payment Terms:

Net 30 Days FOB Point:

Note: The order total Is Inclusive of GST where applicable. TOTAL PRICE(AUD): Itl-

AVALON A!RPORT DEFENCE PROPOSAL.

AMENDED ON 08.05.2008.

CONTACT OFFICER: MS PAIGE DAVIS (DPLA) TEL: 02 6266 6506

Thill order is

00001 AVALON AIRPORT DEFENCE PROPOSAL Qty. conversion: I VAL = I VAL GST @ 10.00% Delivery date; 30 JUN 2008

Delivery Schedule: Date 30 Jun 2008 30 Jun 2008

~ __~~______________________T_O_T_A_L L_IN_E_I_T_E_M_P_R_I_C_E_(A_U_D_):____~~

Page lof :

Please Deliver to: PAIGE DAVIS PH: 02 62668506 DEPARTMENT OF DEFENCE ***TO BE ADVISED*** CANBERRA ACT 2600

Direct Invoices to: COMPLEX PROCUREM ENT CELL BMFR BP-ICO,",,", DEPARTMENT OF DEFENCE CANBERRA ACT 2600

Re\'ised 19 Feb 2008

...

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.;-. GENERAL CONDITIONS OF CONTRACT FOR THE SUPPLY OF GOODS AND SERVICES -,1. Contract FormaUon: If the Purchase Order and Contract for the Supply of Goods and Services (Purchase Order) is Issued following a Request for Quotation where the Contractor has offered to supply the Goods or Services in accordance with these General Conditions of Contract for the Supplv of Goods and Services (the General Conditions), the issuing of this Purchase Order by the Commonwealth constitutes acceptance of that offer and creates a contract between the Commonwealth and the Contractor (the Contract).

In all other circumstances, if the Commonwealth issues a Purchase Order under the General Conditions and the Contractor does not within 7 days of the issue of the Purchase Order notify the Commonwealth of its non-acceptance, then the Contractor will be deemed to have acceRted the General Conditions, and a legally binding Contract will be formed UP9n the expiration of the 7 days.lhe Contractor will also be deemed 10 have accepted the General Conditions upon delivery of the Goods or Services and a legally binding contract will be formed on that date. Any alternative terms and conditions by the Contractor will be of no effect.

The Contract consists of:

The Purchase Order;

The General Conditions; and Any special conditions issued and attached by the Commonwealth (Special Conditions).

In the event of any inconsistency belvieen the General Conditions and any Special Conditions, the Special Conditions shall prevail.

2. Existing Contracts and Standing Offers: If the Purchase Order is issued unoer the terms of a standing offer or under the terms of an existing contrad, the terms of that standing offer or existing contract shall prevail. Any Special Conditions issued by the Commonwealth

~hall take precedence over both the terms of the standing offer and an .xisting contract.

3. Changes to the Contract: Changes to the Contract must be in writing and signed by both parties.

4. Price Basis: The Contract price is firm and must include customs dulY (unless spE1cificali)' exemp!), packaging, marking, handlil',lg, freight and delivery (Free-in-Store), Insurance. Goods and Services Tax (GST) (if applicable), and any other applicable costs and charges.

The Contractor Is entitled to recover from the Commonwealth the amount of any GST payable on taxable supplies, within the meaning of the GST Act, provided under this Contrad.

5. Invoices and Payment of Accounts: The Commonwealth's standard terms of payment are 30 days from acceptance of the Goods or Services or receipt of a correctly rendered inVOice, whichever is the latter. This may be varied where the Commonwealth accepts a discount offered by the Contractor for earlier paYl!lent, or where payment by Defence Purchasing Card is offered by the Commonwealth and preferred by the Contractor.

The Contractor must issue the Commonwealth with a valid tax invoice in accordance with A New Tax System (GoodS and Services Tax) Act 1999 (the GST Act).

The invoice must include !he PUrchase Order number, name and --Rhone number of the Contact Officer and satisfactory evidence that

,I ~e Goods or Services listed in the Invoice have been accepted by the , rommonwealth.

- 6. Perfonnance of the Contract: The Contractor must deliver the Goods andprovide the Services at the time and place speCified in the Contract. The Contractor must ensure that the Goods and Services comply with these General Conditions and any Special Conditions attached by the Commonwealth.

If the Goods are damaged, faulty or do not fullY comply wilh this Contract, the Commonwealth may, by notice, require the Contractor to make good or Goods at no additional cost to the CommonwealthJ, removal and incidental costs. The Contractor has.30 the date of the notice to comply.

If there is a defect In performance of the Services or they are incomplete, the Commonwealth may. by notice, ~uire the Contractor to remedy the defed in performance, complete the Services. or re~o the Services at no additional cost to the Commonwealth. The Contractor has 30 days from the date of the notice to comply.

7. WarranUes: The Contractor warrants that all Goods will be new and acomply with the highest relevant commercially' accepted standards and be lit for purpose unless varied by a Special Condition.

The Contractor warrants that It will render the Services with due skill and care. and that materialS supplied in connection with the Services will be fit for purpose.

The warranty commences on the day of delivery or acce~tance of Goods and Services, whichever occurs lasl. II snail be valid for 90 days or the length of the Contractor or Manufacturer's standard warranty ~liod. whichever is the longer. The conditions and peliod for completing warranty work are the same as for the remedial work in ClauseS.

8. Termination: The Commonwealth may terminate the Contract in whole or in part when the Conlractor: has not remedied a breach within the lime specified in the notice of breach; becomes bankrupt or insolvent; or is unable to complete the Contract.

9. Intellectual Property: The Contractor grants to the Commonwealth a royalty-free, irrevocable. perpetual, licence to use any Intellectual Propeny associated with the Goods and Services for any purpose within the power of the Commonwealth with respect to the defence of the Commonwealth and includes purposes that are necessary or incidental to that purpose.

10. Inspection and Source Quality Assurance: The Commonwealth Representative may perform: Quality audits and quality surveillance as defined in ASlNZ ISO 9OO0:200f of the quafily system and/or the productiOn processes; and/or - Quality inspections of the completed Goods and Services before acceptance.

11. Commonwealth Access: The Contractor must provide the authorised Commonwealth representatives with full and free access to its premises and work areas. and all documentation appropriate to assess compliance wlth this Contract.

The Contractor must. at its own expense provide all reasonable facilities and assistance that the Commonwealth representatives may require for the purposes of this clause.

The identification and classification of in-confidence information will be determined on a case-by-case basis, by agreement between the Commonwealth and the Contractor. Any agreed in-confidence items will be detailed under the Special Conditions attachment.

12_ Assignment/Subcontracting: The Contractor must obtain the prior written approval of the Commonwealth to assign or subcontract the Contract or any I'8rt thereof. Approval to assign or subcontract shall not relieve the Contractor from any of il$ obligations under the Co'!tract, or impose any tiability upon the Commonwealth to an assignee or a subcontractor.

13. Titre, Acceptance and Risk: Title to the Goods vests in the Commonwealth on acceptance by the Commonwealth. The risk of any loss or damage to the Goods remains with the Contractor until deliVery to the Commonwealth in accordance with the Contrad.

14. Notices: All notices, requests. variations, and other communications by either party are to be in writing and delivered promptly to the Contact Officer.

15. LIability: The liability of a party to the other party for breach of this Contrad, or In tort, or for any other common law or statutory cause of action arising out of the operation of the Contract, shall be determined under the relevant law in Australia that Is recognised and would be applied by the High Court of Australia.

18. Indemnity: The Contractor must indemnify the Commonwealth. its officers. employees and agents against any liability, loss, damage costs (incluein9 the cost of any settlement and legal costs and et

Sinclair Knight Men 590 Orrong Road. Armadale VIC 3143 POBox 2500 Malvern. Vic 3144 Austra~a

ABN 37 001 024 095 Tel: +61 392463100 Fax: +61392463000 Web: WoNw.skmconsulUng.com

Tax Invoice

randum of Fees Ms Paige Davis 56023092 Nationat Property Manage 2 Defence Support Group 3O-Apr..()8 Department of DefenCCl SB10436-.26 Brindabella Circuit Your Ref: Brlndabella Park ACT 24100

AttentiOn: MI Paige Davll DUll Date: 14-May.()B

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SKM Project Manager Ph;+613 9248 3062.

Please make dtea E.FT payments 10 the IdIClWlng account Westpac Banlc, St. I.eollOll'dS Branch (NSW). IlSB: 032291, Accoum No.: 20-1161. Please

emal your reminance ad.nce 10 ar@a"tII.coft1.auandquotethe invoice number. 1III....liv8ly. you can send It paymenllo the ad

Davis, Paige MISS

From:

Sent: Thursday, 27 March 2008 13:34

To: Davis, Paige MISS

Cc:

Subject: Avalon MOP Review

Attachments: Avalon MOP Review Program.doc

Hi Paige

Further to our meeting yesterday. please find attached a program for our key tasks. Note that we are available to attend the meeting next Thursday 3 Any time after 12.30 would be fine with us asm. Our proposal originally allowed for the meeting in Canberra, but given the nu'iiiber'OT issues being raised and stakeholders and be fadlitating, we think it is appropriate for myself to a~d capture all the sues. would involve a fee variation of approximatery~ for my time and Melb to Canberra flights.

I also wanted to confinn as discussed, some items of further information we are seeking as follows:

Airport Master Plan - / Environment Strategy _/ t Copies of title plans and/or survey plans Larger/dearer site plan defining leased area Australian Noise Exposure Forecast Map Aora, Fauna, Habitat Hectare Assessment referenced in the MD'l\,

I will await your response to confirm the meeting time and fee variation.

Regards

590 Orion9 Road Armadale VIC 3143 Australia Tel: +6' 39248 3656 Fax: +61 392483631

Sinclair Knight Merz ac:hll!lvl!I outstanding ellen! suc:c:ess For further informalion. visit our websile www.$~g.com

~ Pleas~ consider t~ ~nlfjrQnment bdont printing this ~'mQiI

SKM is committed to working with its clients to deliver a sustainable future for all. Please consider the environment before printing this email. Notice - This message contains confidential infonnation intended only for the exclusive use of the addressee named above. No confidentiality is waived or lost by any mistaken transmission to you. If you have received this message in error please delete the document and notify us immediately. Any opinion, text, documentation or attachment received is valid as at the date of issue only. The recipient is responsible for reviewing the status of the transferred infonnation and should advise us

27/03/2008

http:www.$~g.com

Avalon MDP Review Work Program

Week 1 1 2 3 4 5 6 7 Key Tasks Project Inception and teleconference

26.3.08

Site inspection and Council visit (view tile)

28.3.08

Information review and analysis . ':::::'

Inter-agency meeting '3.4.08 '~J!

Report preparation '" -.1. . , Delivery of draft report ~ ..~

Defence review and comment

Delivery of final report 5.5.084.

NOTE: Expiry dale for 90 days to approve the MDP is 255.08

-.. JL .;

Minutes

SKM

Purpose of Meeting Avalon Airport

Major Development Plan Key Issues Discussion

Project Avalon Airport MDP Project No SB184356

Place of Meeting Department of Defence

26 Brindabella Circuit

Canberra Airport

DatelTime 3rd April 2008

1.30 - 4.00pm

Prepared By Phone No 0392483656

Present Michael Healy. Assistant ::;ecrE~tarv.r:.:r.I Property Services

(AQIS)Paige Davis. Property Manager.

Defence Chris Murphy, Dept of Environment.

. Water, Heritage and the Arts Stephen Borthwick, Dept of Transport(DEWHA) and Regional Services (DOT ARS)

Sinclair Knight Merz John Tanti, Manager Aviation. Australian Federal Police (AFP)

Sinclair Knight Angela Black, Director Passenger Clearance, Australian Customs Service (ACS) Justin Vavrina. Dept of Immigration

and Citizenship (DIAC) Nicholas Brady. Airport Operations, Australian Customs Service (ACS) Samuel Lucas. Office of Transport

SeCUrity (OTS)Brendan Atkinson. Australian Customs Service (ACS) John Gray. Office of Transport

Security (OTS) Tina Hutchison, Australian Quarantine Inspection Service (AQIS)

Apologies Mark WalliS. AFP James Collett. OTS

Julie Stelzer. ACS

llteml Diseu~ion 1) Welcome

Michael Healy (Dept of Defence) welcomed the group to the meeting and advised that tihe purpose of the meeting is to obtain whole of Government feedback on the proposed Major Development Plan submitted by Avalon Airport Australia (AM) for Avalon Airport. He advised that he has overall respo~slbility for managing leases for the Dept. of Defence.

Mrchael advised that the Dept of Defence were keen to obtain feedback from

SINCLAIR KNIGHT MEAl

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C:\TempIlECACHE\TemporOly Intemet Fiies\OLK665\Avalon Meeting Minutes v1.doc PAGE 1

approval process was similar to the provisions of the Airports Act 1996

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1 April200B

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Iiteml Di~c~ssion other government agencies due to concern thai approval of the MOP would be

interpreted by AM as defacto "whole of Government" endorsement of Avalon

Airport's international opera1ion.

2) Overview of Avalon Airport Major Development Plan (MOP)

~ (SKM) provided an overview of the Avalon Airport Major

Development Plan document and supporting plans.

3) Approval process required under lease agreement

(SKM) provided an overview of the approval process for a 'evisloioment Plan under the lease agreement. She advised that the

4) Preliminary key issuos

(SKM) provided an overview of the key issues arising from assessment of the MOP. ~ advised that the MOP

lacked detail and contained uncertainty regarding proposed infrastructure and

requirements of border protection agencies.

The development presenls a range of issues that have not been addressed in

any detail in the MOP encompassing environmental. traffic and noise exposure

issues.

The group raised issues aboullhe resourcing of airport border protection and

the lack of "whole of govemment" approval processes for new and expanding

airports across Australia. The group also discussed the issue of resourcing for

new airporls and advised thai ACS is funded according to the arrival number of

passengers and other agencies are funded through more standard budget

allocation processes. Agencies advised that resources would need to be

diverted from other border security activities to fund border security activities at

new and expanding airporls.

The Passenger Facilitation Taskforce was established in 2005 for border

protection agencies (0 meet with industry to discuss passenger services.

There is no whole of government interagency strategy for new airports. It was

noted that the issues associated with emerging airporls are cUlTBntly being

looked at separately. Stephen Borthwick advised that a Joint Submission to the

Prime Minister is being prepared by ACS to make recommendations regarding

resourcing of border protection agencies for new and emerging airports.

The group also noted that the Airport Operators Guide provides guidelines for infrastructure needs at airporls.

5) Key agency issues regarding the MOP

~ (SKM) facilitated round table discussions with the agencies

~ssues regarding the MOp.

She requested feedback on the standard of information supplied, whether the

agency had given approval to the plans and completed discussions and

whether the plans had been changed in response to any feedback provided by

(he agency.

Issues raised during this discussion by each agency are as follows:

ACS (Angela Black): A joint submission is being prepared seeking decisions regarding funding

the resourcing of border protection agencies. This is likely to be a long

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1 April 2008

.... .... process, but there may be some progress by late June. Services are delivered under a policy of competitive neutrality. There is no established process for RPT flights. There Is no business case for international services provided in the MOP. Information about the number of flights per day is constantly changing which has.imptications for resourcing. terminal design and infrastructure

required and ACS requirements for simultaneous processing.

There is concern that the proposal might extend to other airlines. Movement of cargo is still at the preliminary stages of discussion with Avalon. Requirements and performance standards for cargo need to be mel Adequate provision for clearance of cargo at the first point of arrival is required.

r--.. ACS has not provided agreement to the proposal at this stage, they have I only provided feedback to Avalon.

ACIS (Tina Hutchison)

Funding is not linked to increased passenger numbers. so resources have to be shared acrOSS airports. (ie. a reduction in numbers at Melbourne Airport may be needed to resource Avalon). Resourcing is seen as a significant issue.

The MOP has not been endorsed by ACtS. but there have been discussions with Avalon and feedback provided particularly regarding terminal design.

Avalon has stated there would not be cargo, but it is considered that there is likely to be some based on the currenL AJr Asia X flights to the Gold Coast which brings some cargo.

Further clarification regarding the frequency of flights. cargo, waste is required to confirm the terminal design and facilities needed to process passengers, cargo and waste.

ACtS and ACS discussed having seen a tater version of the plan included in the MDP.

DIAC (Juslin Varvina):

Similar resourcing issues expressed - funding nollinked to increased passenger numbers.

No accurate information regarding a business case for the international terminal has been provided.

Need to know what passenger composition to expect from the proposed flights as this influences resources and infrastructure required.

OIAC officers need to be located with easy access between departures and arrivals and have access to customs area.

No endorsement of the plans has been provided.

AFP (John Tanti):

The model of policing at Avalon has not been determined. It has not been detennined by AFP whether 'unified policing models' would be required at Avalon .. This needs to be determined by the National Security Committee of Cabinet.

There are cost issues associated with this and different level of resources required.

Some of the existing empty buildings are not considered adequate. Purpose buill accommodation is needed, separate from the terminal environment.

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6) Key Issues Summary

~ (SKM) provided a summary of key issues arising from the

~sues raised were:

Resourcing of border protection agencies Absence of clear "whole of governmenr policy to approve expansions to

existing airports to provide international services and new inlemalional

airports.

Lack of detailed plans and details and some inconsistency in plans and

details provided 10 various agencies.

Lack of final approval from agencies.

7) Next steps

Paige Davis (Dept. Defence) advised that SKM will prepare a written report

recommending how the department should address the MOP.

~(SKM) advised Ihat SKM may contact meeting participants 10

~rther followin~ Ihe meetln~.

Dept of Defence will prepare a Ministerial Briefing advising the Minister for

Defence how 10 respond 10 the Major Development Plan.

Actions AriSing from Meeting

Written feedbac.k from each agency regarding the MOP to be provided to Paige 18 April 2008 Davis (Opt Defence).

Angela Black to confirm the dale and version number of the plans received by 18 April 2008 customs

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Page 2 of2 ,.

(SKM)

IJrnhnc:::U - Assessment of Draft MOP for Avalon Airport

Importance: High

Dear Paige

Further 10 your discussions with ~yesterday, please find attached our fee proposal to assess the draft major dev.nt pla~port. If you would like to discuss this further please do not hesitate to contact ~ on (03) 9246 3062.

Regards

-~Strategl~ 590 Orrong Road Arrnadale VIC 3143 Australia

Tel: +61 3 9248 3656

Fax: +61 39248 3631

Email: '

Sinclair Knight Merz.. achieve outstanding client 8uccess

For further Information, visit our website www.skmconsultlng.com

rIJ Please consider the environment before printing this e-moil

SKM is committed to working with its clients to deliver a sustainable future for all. Please consider the environment before printing this e-mail. Notice - This message contains confidential information intended only for the exclusive use of the addressee named above. No confidentiality is waived or lost by any mistaken transmission to you. If you have received this message in error please delete the document and notifY us immediately. r Any opinion, text, documentation or attachment received is valid as at the date of issue only. The recipient is responsible for reviewing the status of the transferred information and should advise us immediately upon receipt of any discrepancy. All email sent to SKM will be intercepted, screened and filtered by SKM or its approved Service Providers.

11/03/2008

http:www.skmconsultlng.com

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Sincl~ir Knight Marz I 590 Otrang Roa(.1, Annadale 3143 Tel: -+9139248 3100

PO Box 2500 / / Fax: -+91 392483095 Malvern VIC 3144 Ausb'aliB Web: ~.skmconsulting com

Paige Davis

National Property Manager

Defence Support Group

Department ofDefence

26 Brindabella Circuit

Canberra Airport

ACT 2600

6 March 2008 Avalon Airport Defence Proposal.doc

SBP8:!68

Dear Paige

'.

Fee Proposal- Assessment of Draft Major Development Plan for Avalon Airport

Thank you for the opportuniry to provide a fee proposal for assessment of the draft major

development plan (MDP) for Avalon Airport. Further to our discussions yesterday, SKM is

pleased to provide the following proposal.

Introduction

Avalon Airport is located approximately 55 km from the Melbourne CBD and situated on

Commonwealth land managed by the Department ofDefence. The airport is currently leased

by Linfox for a tenn of 50 years.

We understand that Linfox in accordance with its lease agreement with the Department of

Defence has recently prepared a draft MDP for the development of an international tenninal at

Avalon and that the Department of Defence under the same lease agreement is required to

decide whether or not to approve the MDP within 90 days. Depending on the lease a1:,'Teement,

we note that a draft MDP may not be applicable in this case since Avalon is not considered a

core regulated airport as defined under the Airports Act 1996. If this is the case, then the

proposed international tenninal development may require approval under the Environment

Protection and Biodiveristy Consen1atio1J Act 1999 should the action be likely to have a

significant impact on the environment as Avalon airport is Commonwealth land.

Methodology

SKM propose to undertake the project in the following stages.

Stage 1 -Projecllnceplion

An inception meeting will be conducted via tele-conference with Defence to con finn

reporting arrangements, discuss preliminary concerns or issues regarding the MDP and

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Oepartment of Defence

Fee Proposal. Assessment 01 OevelopmentApplication lor an Inlema~aI Terminal III Avalon Aiport ~ Marm2008

SKM

obtain all background information including a copy of the draft MDP, supporting

documentation (eg. correspondence from state and local government) and the lease

agreement between Defence and Linfox, the Avalon Airport Masterplan and Environment

Strategy.

A site inspection will be undertaken to gain an understanding of the physical aspects of

the airport property and surrounding land use context.

Stage 2 - Review ofDraft Major De"elopment Plan

The lease between Linfox and the Department of Defence will be reviewed to identify the

obligations that Linfox has to Defence under the terms of the lease with regard to

development on the site. Particuiar note will be taken of any legislative requirements

under the 'ease as they effect both parties.,

The relevant planning and policy frameworks will be reviewed to delennine their possible

influence on the development parameters for the site. Potential triggers under the

Environment Protection and Biodiversity Conservation Act 1999 will also be reviewed.

The draft MDP will be reviewed against the relevant planning and policy requirements,

obligations under the current lease, the Master Plan and Environment Strategy objectives

and relevant provisions of the Airports Act 1996. We intend to use Division 4 of the

Airports Act 1996 as a strategic framework to guide assessment of the MDP.

Stage 20 - Stakeholder Consultation

It is understood that the MDP will be referred to relevant stakeholders for comment. Any

f' stakeholder comments or feedback received by the Department of Defence will be reviewed and incorporated into the report as appropriate.

Further phone discussions with State and local government will be undertaken as

necessary to obtai'n their point of view regarding the proposed development and any

relevant planning and policy documents.

SKM will attend a meeting in Canberra 10 further discuss concerns raised ~y the

stakeholders prior to completion of the draft report.

Stage 3 - Report Preparation

A meeting via teleconference will be held with the Defence project manager to discuss

findings of the review and proposed structure of the draft report.

A draft report (of no more than 50 pages) will be prepared, outlining the aspects of the

MDP that are satisfactory and those that arc deficient.

The report will be finalised upon receipt ofcomments from Defence on the draft report.

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Fee Proposal Asseswent of Deva!opment AppIicalioo for an Intematimal Terminal at Ayalon Airpo1 4 March 2008

Timeframe for Delivcrables

SKM wilJ submit the draft report (one hard copy and one electronic in PDF fonnat) to Defence

within 30 business days of project inception. A final report (one hard copy and one electronic

in PDF fonnat) will be submitted to Defence within 5 business days of receiving Defence

comments on the draft report from Defence.

F ees/Personnel

Our fee for undertaking this work is $29,950 (excl. GST). These costs are based on the hourly

rates of our project team members provided below .

. m.

Project Director

Technical Reviewer 47G Senior Strategic Planner Strategic Land Use Planner

Any variation to the scope of works will be negotiated based on the above hourly rates. SKM

will keep Defence regularly infonned as to the progress of our work and ifit becomes

necessary to exceed the estimated fee. we will not proceed without first seeking prior written

approval from Defence.

III is SKM's Natjon~l Manager, Defence Environment. He has experience as a Project Director or Manager in over 120 Defence projects. His experience with Defence spans nearly

35 years. As a fanner Anny Officer (Royal Australian Annoured Corps)lfiIhas extensive

knowledge ofcurrent equipment, facilities and training areas. mils a qualified

Environmental auditor. III has experience working within the aviation environment having worked On the Sydney 2nd Airport Project, RAAF Scheq,>er, and the joint user airports at

RAAF Tindal and RAAF Williamstown. As Project Director, IIIwill retain corporate responsibility to ensure SKM delivers to Defence's complete satisfaction.

_ a senior consultant with over 25 years experience in providing environmental

planning and management services and has qualifications in engineering, science, safety and

IQw. is a fonner miHtary engineer and environmental advisor to the Chiefof the

Australian Army_has previously worked in the public sector and was involved for

several years in the administration of the Environment Protection and Biodiversity The SKN bg~ radt mart Ga regisleted Ir.!IOO 1I1ild< of SiIlCIai, K/I~ Mea I'\y UtI. 1:\S8AP\Propasals\SBP8268IProposB1 Manageme!lMva1oo Aitpa't Defence Propc$aI.doc

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Department of De~re

Fee Proposal A$~meot of Development Application lor an International Terminal at Avafon AiipOO 4March 2008

Conservation Act 1999 (EPBC Act)_ knowledge and understanding oflhe EPBC Act

will be sought by the project team members as required for this project. m.also has

considerable experience with the Airports Act 1996 and has been involved in reviewing and

preparing Major Development Plans for over a decade.

~as over 13 years experience as a stannory planner, strategic planner and planning manager for Local and State Government in Australia and New Zealand. m.. has had extensive experience developing and analysing local and state government planning policies

and preparing strategic land use planning studies and planning pennit applications.

~ has a strong understanding ofcurrent issues facing Australian airports and has undertaken planning work on large-scale retail development, master planning of towns and

sites and preparing and analysing local planning policy. While WOrking for the Victorian State

Governmen_ was responsible for providing advice to Government regarding the

strengths and weaknesses of structure plans for activity centres and housing strategies. In this

role, her advice led to improved planning outcomes for several major and principal activity

centres in metropolitan ~ also has prepared several rural land use strategies

assessing the compatibility of rural land use activities with critical infrastructure such as

airports. be closely involved in review and analysis of the MDP and associated

documents.

~ has extensive experience as a statutory and strategic planner within State Government,

Local Government, and as a consultant. In her previous role as a consultan_provided

ongoing planning advice to Australia Pacific Airports Melbourne in relation to proposals on

airport land and the revised Airport Environs Overlay for Melbourne Airport.

~as particular experience in site assessment, land use studies, development approvals processes, planning scheme review, amendment and interpretation. As a land use planner,

~ is responsible for the delivery of strategic planning advice, advocacy, research and

assessment work to support SKM internal and external clients. ~ will provide support in

day to day management of the project, review and analysis of the MDP and associated

documents and report writing.

The SIletecl tracIe 111M< of Sinclair Kni;hl1.Ierz Ply Ud.

l:\SBAPIProposal$\SBPS261l\Proposal Managemeot\Avalon AIrport Defenre Proposal.doc page 4

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SliM

[lep2ttmenlof Defence

Fee Propo68l. As.sessment ofDevelopment Application lor an International T~inal at Ave/on AiI)Xll1 4March 2008

Project Assumptions and Exclusions

Our successful delivery of the project is based on the following assumptions:

This assessment is not a major review to the Federal Court.

Should it become necessary to undertake further discussions, consultation, site inspections

or assessment work, a variation to. the scope of works wiII be negoliate~ based on the

above/agreed hourly rates.

Allowance is made for regular discussions via telephone and email with the Defence

project manager throughout the project.

Defence will provide (l) consolidated set ofcomments on the draft report for SKM to

undertake amendments. Additional comments received after receipt of the consolidated

Defence comments will be subject to a variation of fees.

Allowance is made for one (I) revision of the draft report by Defence prior to fmalisation.

However no allowance is made for a fonnal presentation of the final report.

Allowance is made for one site visit and one return flight from Melbourne to Canberra for

one person.

Allowance is made for a review ofcomments from up to 8 agencies or stakeholders. Allowance is made for telephone discussions with Council and the Department of Plarming and Community Development. . No allowance has been made to analyse the potential for a significant impact on the environment in the context of the Environment Protection and Biodiversity Conservation

Act 1999.

No allowance has been made for technical assessments such as flora and fauna, eultural heritage management or traffic and transport. SKM has the capacity to provide such

technical advice if required, subject to a variation of fees.

No allowance has been made for obtaining legal advice or instructing legal counsel. SKM can identify the Jegal advice required and instruct independent legal counsel subject to a variation of fees.

The enclosed SKM standard tenns and conditions are proposed as a basis for undertaking

this work. However if required, we are prepared to diseuss alternative consultancy terms.

The SKIll logo trade m.n Is a registtrad trade mIIrt or Blndair Kr>iOhl Merz Ply W 1.ISBAP\PrqlOsalslS8P8268\ProposaI ManagementVlvalon Airport Deftnee PIoposI!/.

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Department 01 Defence

tee Proposal A.$$eS$/TIenl rJ O~t~ca!iQ'l b' an 'ntemabal Tenninal at AvalQ'I Airport Marcil 2003

SKM

] f you bave any queries or would Iik.e to discuss this proposal further, please do not hesitate to

contact me.

Yours sincerely

Team uader Planning Services Phone: (03) 9248 3062

Encl.l

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Terms of Agreement for Professional Services 1. Sinelair Knight Merz Ply Limited (Con,ulfanl) The Consultant shall hold public liability iMur.mce. sball provide to the Client the professional services profcssiol1lll indemnity insu~ncc and workers (Services) for lhe Projo::t being undertaken by the compensDlion insurance in respect of the provision oC Client (Projeel) descn"bed in the accompanying letter the Services under I his Agreement. and as prescribed by Ihese Terms or Agreement 7. Copyrighl in oil drawing5, reports, specifications, (Agreement).

bills o( quantity. calcullltions, software, models. 2. In providing the Services. the Consullanl shall source code and object code and olher documents exercise the degree or skill, eare and diligence provided by the Consultant in eonnection with the normally exereised by professionals in similar Project shall remain the property oflhe Consultant. circumstallees. S. Subject 10 clause 9 the Clienl elolle shall have 0 3. The Client shall provide 10 the Consultant briding licence to use the documents referred to in clause 7 lind all information concerning the Client's for the purpose or complding the Project. but the requirements for Ihc Project. Client shall not use. or make copies of. such

documents in connection with any work not included4. The Client shall pay to the Consultant the Fee and in the Project.the Rcitnbulliable Expenses as set oul in the

accompanying leUer. 9. If the Client is in breach of any obligation:llio make II payment 10 the Consultant, the Consullan! mayS. Alimonies payahle by Ihe Client to the Consultant revoke the licence referred 10 in clause 8 and theshall be paid within 14 days of invoice. Monies not Client shall dlCll cause to be returned to thepllid within that period shall attract interest from the Consullant all documents referred to in clause 8, anddate of invoice until payment at the rate or the current all copies thereof. CBA COlpOr.1te Overdraft Refcn:ru:e Rate plus 2%,

calculaled on daily overdue balances. 10. The Client shall ensure, lO the eXlenl reasonably possible, that lhe Consultant's input into the Project is6. To the muimum extent permitted by law; duly recognised in any publiCity 1n8lcriul generated by(a) the Consultant's liability to the C1ienl arising out the Client in respecl of the Project.

of or in connection with this Agreement (including the performance or non performance of 11. Any dispute belween the Client and the the Services), whether under the law of contract, Consultant shall firsl be the subject of mediation in tort (including negligence), in equity, under provided thet this provision shall not prtvel1t the statute or otherwise shall be limiled in aggregate Consultant from inslituting legal action at.any lime to to 5300,000. recover moneys owing by the Client 10 the

(b) the Consultant is not liable to Ihe Client in respect Consultant..

of any consequenlial or indirect loss or damages 12. Tbe Clienl may terminate its obligations under (including 10$$ of profits or business opportunity this agreemenl: or paymenl of liquidated sums or damages under (8) in the event o( substantial breach by Ihe any other agreement): Consultant of iLl obtigution:ll hereunder, which

(c) The Consultant shall be deemed (0 have been breach has nOI been remedied within 30 days ofdischarged from all liabiliry in respect of the wrilten notice frOID the Client to the Consultant Services. whether under contract, in tort requiring the breach 10 be remedied; or

"- (including negligence). in equity, under stalute or (b) upon giving the ConsLlltant 60 days written nOliceotherwise, on tbe el(piration of 3 years from the of its intention to do so.completion of the Services;

(d) If find 10 the eXlent that any of this clause Is void 13. The Cl)IlSultant may suspend or terminate ilS as a Jesuit ofsection 68 of the Trade Practices Act obligations under this Agreement: 1974 (Cth) tben the Consultant's liability for (a) in the event of: breach of a condition or warranty is limited to; (i) monies paYllble 10 Ille Consu1(anl hereunder (0 the supplying or Ihe n::levant Services being oUIstanding for more than 28 days;

again; or (ii) other substantial bn:ach by the Client of its (ii) the payment of tbe cost of having the obligations hereunder, which breach has not

Services 5ul'l'tied ogain. been remedied within 30 days of written notice from the Consultant to the Client

The Consullanl's liability to the Clienl for any IOS5 or requiring the breach to be remedied; or domage, including a claim for damages for a breach of (b) upon giving the Client 60 days ...rillen notice of the Agreo:ment by the Consultant shall be reduced to its intention to do so: or the extent thal an act or omission or the Clien! or its (e) if the Client is insolvent. employees, agents or consultants oonlributed 10 the 14. T erminetion shall be wilhoul prejudice to any1055 or damage. The Client will indemnify the claim which either party may have against the othet in COllSl.lltant against all claims. ooslS, suilS and respect of any breach of the terms of Ihe Agreemenldemands by third parties arising in re~t of the which occvrnxl prior to the date of lermin~tion. Services.

15. !(the Consullanl oonsidelll illlppmprietc to do so, il may with lbe Clienl's prior approval. which shllil

Form No.:40J37AIJ.DOC Slnelalr Knight Men Ply ltd Rev Oct os PAGE 1 of 2

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not Ix: unreasonably withheld. engage another consultant 10 assist the Consultant in specialist areas. The Client accepts responsibility ror al/ ,nonies payable to such other consultant

16. Neither party may assign, transfer or sublet any obligation under this Agreemenl willmut the written consenl or the olher. Unless slaled in writing 10 the contrary, no assignment, transfer or sublening shall release the assignor from any obligation under this Agreement.

17. The Client acknowledges lhat. unll:ss agreed otherwise, the provision of Serviees by the Consultant for the Project is not given on IIIl exclusive basis.

18.Fees and disbursements are ellelusive of any Goods and Services Tax. whether levied on inputs 10 the Services. or on the Services. Any such Goods and Services Tax costs shall be to the Client's account .

19. The ConsulLl'lnt !)hall in no circurnsl~Cli have any liabilily. howsoever caused, due to claims, loss or damages lUSOCiatcd with asheslOS, loic mould or terrorism.

Form No.:40337AU.DOC: Sinclair Knight Merz PlY Ltd RevOct05 PAGE2of2

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Agenda

SliM

Purpose of Meeting Avalon Airport Major Development Plan Key Issues Discussion

Project Avalon Airport MDP Project No SB18435

Place of Meeting Department of Defence DatelTfme 3rd April 2008

26 Brindabella Circuit 1.30 - 4.00pm

Canberra Airport

Time.

J) Welcome (Paige Davis, Defence) 1.30 - 1.35

1.35 - 1.45 SKM)

2) Overview of Avalon Airport MOP submitted to Defence

Nole: Please bring a copy ofthe MDP as a reference.

3) Approval process required under lease agreement A7F 1.45 -1.50 SKM)

Allac!rment: S.8/3 ofLease Agreement

SKM) 1.50 - 2.003) Preliminary identification of key issues.

Information gaps

Agency consultation requirements

Technical issues

4) Key agency issues regarding MOP - round table discussion with input 2.00- 3.40 required from:

Australian Federal Police

Australian Customs Service

Depanment of lmmigration and Citizenship

Department of lnfrastructure. Transport, Regional Development and

Local Government

Office ofTransport Security

Australian Quarantine and Inspection Service

Department of Environment. Water, Heritage and the Arts.

Attachment: Letter dated 5 December 2oo8/i'om Australian Customs

~ervice

SKM) 3.40 - 3.505} Key Issues Summary

6} Next steps in consideration ofMDP (Paige Davis, Defence) 3.50-4.00

SINCLAIR KNIGHT MERZ

The SKM logo trade mark Is a registered Ii.ade mark of Sinclair Knight Merz Ply lid.

C:\Temp\IECACHE\Temporary InlSmet Flles\OLK665\Avalcn Meetirlg Agenda.doc PAGE 1

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http:3.50-4.00http:2.00-3.40

FOI 067 121: Serial 2

Avalon Airport

Major Development Plan

International Passenger Terminal

February 2008

Introduction

Avalon Airport is situated 55 kilometres from Melbourne and 18 kilometres from GeeJong.

Established in 1952 for Australian aerospace defence purposes, Avalon Airport has played a leading role in Australia's aviation industry for over 50 years.

In February 1997, the Commonwealth of Australia privatized Avalon AillJort. Since that time, the airport has been leased by Avalon AiqJort Australia Pty Ltd (AAA). AAA is owned by the Linfux Group ofCompanies.

Over the past decade, Avalon has established itself as 8 B747 aircraft maintenance facility, a location fur international airfreight, a base for jet pilot training. a site fur international airshows and domestic passenger flight services.

These domestic flight services commenced on the 1st June 2004. Linfox. in conjunction with Jetstar Airlines, invested in a high risk commercial venture to commence domestic passenger flight services :from Avalon Airport.

Since that time, over 2.8 million passengers have used Avalon Airport for domestic flight services en-route to Avalon, Sydney, Adelaide, Brisbane and Perth

This has brought hundreds of thousands ofnew tourists to the Geelong and Western Victorian Regions. Tens of millions of dollars of new economic activity has occurred, supporting the many hundreds ofsman and family owned businesses in those areas. .

The activity also hIlS provided flight services closer to residents in the western regions of MeJboume. The Avalon initiative has also offered low cost flight services to a new market segment. l()f'Al of all passengers who flew from Avalon during the first three years of operation had not been on an aircraft befure, clearly indicating that Avalon now provides services to an Australian demographic that had not been well ~erviced in the past.

Linfux and Jetstar's initiatives have created an additional 140 employment positions on Avalon Airport, bringing total airport employment to approximately 1,300; a near ten-fuld increase since 1997.

Linfux consider that the most important benefit of this octivity is simply thot of competitiDn.. Prior to June 2004, Tullamarine Airport heJd a complete monopoly on jet passenger RPT flight services into Victoria. Linfox's investments in domestic passenger tenninal infrastructure at Avalon Airport have provided airlines with alternatives, created competition and in the process delivered financial savings to the consumer.

Linfox now seeks to create additional competition via the establishment of an International Passenger Terminal

AAA is expanding these activities to encompass international passenger flight services. To do this, new investment in an international passenger terminal is required. This MOP document outlines the proposed international passenger teminal, its scope and the consultation process required as part ofits formation.

2

Major Development PJan Requirement

Pursuant to Clause 8.13 ofthe Lease between the Conunonwealth of Australia and AAA, the Lessee must prepare a Major Development Plan in some circumstances. More specifically, in accordance with Clause 8.14, a Major Development Plan is required for a development that is carried out at the airport and consists of

Constnlcling a building that is wholly or principally for t.rse as a passenger terminal, where the building sgross floor space is greater than 300 square metres.

Contents of Major DeveJopment Plan

Subject to Clause 8.16 of the Lease between the Commonwealth of Australia and AAA, a Major Development Plan must address:

I. The Lessee's objective ror the development;

2. The Lessee's assessment of the extent to which the future needs of users of the Airport will be met by the development;

3. A detailed outline ofthe development;

4. Ifa Master Plan for the Airport is in force then whether or not the development is consistent with the Master Plan;

5. If the development coukl affect noise exposure levels at the Airport then the effect that the development would be likely to have on those levels;

6. An outline of the approvals that the Lessee, or any other person, has sought, is seeking or proposes to seek in respect ofelements ofthe development;

1. The lessee's assessment of the environmental impacts that might reasonably be expected to be associated with the development; and

8. Such matters (if any) as are reasonably required by the Lessor.

Lease Clause 8.16.3 further requires that the MOP must address the extent (if any) of consistency with the State Planning Scheme surro\U1ding the airport, whilst Lease Clause 8.18.1 requires that the Lessee must consult with the Local Government, the State of Victoria and may consult with any other relevant person.

This MDP addresses these matters.

Public Comment

Lease Clause 8.11 specifies that the Lessee must publish a notice in a newspaper circulating in the State of Victoria stating (among other things) that a draft version of the MOP has been prepared.

3

This advertisement was published in Australia's largest sel1ing newspaper, the Herald Sw (daily circulation 550,000), on the 19th November 2007.

In attempting to gain public interest, Linfox simultaneously issued a press release. Thi concept headlined Melboumes 6.0Opm Channel 9 News on the 18th November 2007. whic1 was viewed by 513,000 people. On the 19th November 2007, two articles were written abou the project in the Herald Sun, one article was published in the Age newspaper, and a fron page story on the Geelong Advertiser was published. Further radio announcements wen made on Bay FM news, 3A W news. K Rock News.

No objections, public responses or community angst ofany kind was recorded, or received, ai a result ofthe publicity surrounding the contents of the MDP. In a further attempt to receive I response from the Public, Linfox again advertised in the Herald Swz on the 31 s1 January 200! advising that the MDP was still on public display until the 16th February 2008.

Notwithstanding the pUblicity and advertising, at the conclusion of the 90 day MOP publi( o consultation process, no responses from the public were received. 1. The Lessee's Objective for the DeVelopment

The Lessee's objective for the development is to enable commencement of Intemationa Passenger Flight Services at Avalon Airport.

AAA believes a commercial opportunity exists to pursue international passenger fligh' services, particularly with the emergence of new Long Haul Low Cost Carriers (LHLCC) iI the Asia Pacific Region.

AM considers that international LHLCC prospects into and from Australia, especially te Malaysia, Hong Kong, China, India, Vietnam, Thailand and New Zealand, require the establishment ofa new Low Cost International Passenger Terminal AAA is knowledgeable and skilled in the provision of Low Cost Carrier fucilities in the domestic market, and seeks t( continue this success by taking a similar approach in the interni;ltional market.

r 2. The Lesseets Assessment of the Extent to which the Future Needs of Users of the Premises wUl be met by the Development:

The development is intended for new users of the airport; currently there are no internationa passenger airlines or international passengers using the airport. The size of the terminal hal been configured for our estimate and predictions of future international passenger numbers.

This passenger teoninal is designed to accommodate up to 2 million annual passenge: movements. However, depending on aircrafl scheduling and growth, building extensionl could be required over the next decade to accommodate passenger activity. Based on theS4 assumptions, Linfox considers that the future needs of international travellers and airlines 0 the Airport for the next ten years will be met by the development.

AAA anticipates that between 180,000 - 230,000 passengers could use the facility in the firs year, and possibly 230,000 - 500,000 passenger movements in the second year.

During the third to six years of operation, it is estimated that between 500,000 to one million annual passenger movements could be experienced. By years six to ten, up to two million annual passenger movements could be achieved.

However, it is important to emphasise that the aViation industry is besieged with many chalJenges and risks. [ncidences of international conflict, war, terrorism and influenza and economic fluctuations in oil prices, currency, economic growth. labour costs and security - all impact on international passenger forecast. The estimates of passenger movements stated are forecasts, and can be severely compromised inJhe above mentioned circumstances.

3. A Detailed Outline or the De,'elopment

AAA proposes to establish an international passenger terminal, plus additional outside areas for baggage handling fucilities.

The international terminal will encompass an entrance foyer, and appropriate facilities for passenger security screening. customs and passport contro I, quarantine services and passenger lounges, retai1 and cafe amenities.

The proposed international passenger terminal will be located east 0 f the existing Domestic Terminal.

Location ofthe Proposed International Passenger Terminal (as approximately indicated by the blue circle)

5

The present use of the area is predominately a bitumen road and associated unpaved road reserve and degraded grass and graveL The proposed terminal will be constructed generally on this road and the surrounding area, and an upgraded road access wiU be used.

The building will be approximately 7,800 square metres in size, with additional areas for baggage handling. and ownings. The size hos been determined by assessing and meeting the requirements of border agencies, including Australian Customs, Immigration and AQIS, in conjunction with AAA 's estimate ofpassenger movements as outlined in this document.

r

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The design architect's impression oftbe Terminal entrance and Jat;ade.

The International Passenger Terminal design is oUl1ined in further detail in Attachment A of this Major Development Plan.

On the assumption that this MOP is approved, it is anticipoted thot the Internotionol Passenger Terminal will commence construction in March 2008 and be completed by March 2009.

4. Whether or not the Development is Consistent with the Master Plan

This MOP and its pro(XJsed international passenger tenninal concept is consistent with the 2001 Master PIon. The Avalon Airpon Master Plan provides for a new passenger terminal in the location proposed under this MOP.

6

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Location ofProposed Ne\v Passenger Temlinal, as specifi~ in the Master Plan.

Extract from Avalon A Ilpart Master Plol! December 200/

More particularly. the extract from the Avalon Airport Master Phm outlines the locution ofthe new Terminal, as highlighted in shaded pink above.

S. The Development's Affect on the Noise Exposure Levels at the airport

The construction of the tenninal itselfwi1l not create any significant additional noise, and will not affect the forecast noise exposure levels ofthe airport.

In some circuJnstances, the introduction of additional flights can mean that an airport's Aircruft Noise Exposure Forecasts (ANEF) can be affected, but not in this case.

The airport's May 1999 ANEF was calculated on 45,250 anllual movements, or approximately ] 24 per day. At prcscnt, an avcrogc of41 movcments pcr day is cxpcricnccd, significantly below the expected forecast of 124 per day. This has largely occurred due to the virtual collapse of jet pilot training movements. AAA also note that the extremely loud RAAF Boeing 707 is no longer in operation, but was used in the calculated ANEF in J999. 1n comparison, the type of aircraft used for passenger operations are quieter than the then projected aircraft.

Initially. with this international passenger teonina] completed, it is anticipated that the number ofaircrnft movements pcr day will increase by two. With one million passengers, the number ofaircraft movements will increase by around ten.

Therefore, in conclusion, the proposed international terminal developlilent, and its associoted aircraft activities will not affect the noise exposure levels at Avalon Airport.

7

6. An Outline of the Approvals that the Lessee, or any Other Person, has Sought, is Seeking or Proposes to Seek in Respect of Elements of tbe Development

Linfux has a Planning Permit No. 666f2007IA issued by the City of Greater Geelong, dated the ]J1h February 2008, which allows: Construction of an International Tenninal (Avalon Airport) nnd Ancillary use ofRetail Premises (under 1,000 square metres) in accordance with the Endorsed Plans.

On approval of this plan, an application wilJ be made to the National Passenger and Processing Committee to grant appropriate status to Avalon Airport for international passenger flights.

As part ofthis development proposal, Linfox has briefed and consulted with., and continues to brief and consuh, various Commonwealth Agencies including the Department of Defence, the former and present Department ofTransport, the Civil Aviation Safety Authority, Airservices Australia, The Office of Airspace Regulation (pertaining to Air Traffic Contro)), Australian Customs. Office of Transport Security, Department of Immigration & Citizenship and the r Australian Quarantine and Inspection Services and the Department of Environment, Water, Heritage and the Arts.

These included various correspondence including meetings on and with:

Date COllsultatiollS

141b March 2007 the Civil Aviation Safety Authority 14Lh March 2007 Minister Vaile's Office 14Lh March 2007 Airservices Australia l71b May 2007 Australian Customs 17th May 2007 Australian Quarantine and Inspection Services 12Lh June 2007 Department 0 f Defence 12d, June 2007 Department of Immigration & Citizenship 121h June 2007 Australian Customs 3mSeptember 2007 Australian Customs 61h September 2007 Department ofTransport & Office ofTransport Security 17Lh October 2007 Australian Customs t7Lh October 2007 Australian Quarantine and Inspection Services 171h October 2007 Department of Immigration & Citizenship I 71h October 2007 Department ofTransport 14lh December 2007 Australian Customs l41l1 December 2007 Australian Quarantine and Inspection Services 14111 December 2007 Australian Customs 14lh December 2007 Australian Customs

During the preparation of these plans, Linfux representatives have also inspected Customs. AQIS, Security and Immigration facilities and infrastructure at Adelaide, Newcastle and Perth Airports whilst similarly viewing &.cilities in the United States.

In addition to this MDP approval application, Linfox representatives seek to finalise other necessary arrangements including air-rights, and Australian Agency Charges.

8

7. TIle Lessee's Assessment of the Environmental Impacts that Might Reasonably be Expected to be Associated with the Development

AAA considers that no significant environmental impacts are expected to be associated with the development.

The proposed International Terminal will be located on an area which has been used as an access road to the existing tenninal for many years.

To ensure that surrounding areas did not suffer significant environmental negative impacts, AAA engaged Brett Lane and Associates Ply Ltd to undertake a Flora, Fauoa and Habitat Hectare Assessment. The report was issued in December 2006, and did not identify any significant flora, fauna or habitat in the area where the new International Terminal will be constructed.

A brieCmg on the International Passenger Terminal and the presentation of this MOP was provided to the Department of Environment. Water, Heritage and the Arts on the ] 4th December 2007.

8. Such other matters, ifany, as are reasonably required by the Lessor

No other matters have been reasonably required by the Lessor.

9. Consistency with Planning Schemes Surrounding the Premises

The objective and proposal addressed by this MDP is consistent with the City of Greater Geelong Planning Scheme. The City of Greater Geelong is very supportive ofestab lishing an International Passenger Terminal and has issued a Planning Pennit fur the development. This Planning Permit is enclosed as Attaclunent C.

10. Summal), ofViclVs Expressed by the Victorian and Local Government

AAA has conducted consultation with the Victorian and Local Governments regarding the introduction ofInternational Passenger Services into Avalon Airport.

The City of Greater Geelong is fully supportive of the concept, and in addition to issuing a Planning Permit for the International Termina~ has written numerous letters of support. These letters are attached and include:

A letter from Mayor 0 fthe City ofGreater Geelong dated the 4th September 2007 stating:

"Council consider that the establishment of these flights would be a significant boost to Geelong and 'we are very supportive ofthe concept ..... and

..We look forward to the commencement of this project which will be a tremendous opportunityfor this region. ..

More recently, on the 2]51 February 2008, Ms Kay Rundle, Chief Executive of the City of Greater Geelong wrote:

9

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"This week; you will have received an amended planning permit for your International Passenger Terminal application at Avalon Airport. In addition to that permit, I wish to e~press Council's broader support and enthusiasmfor this proposedproject." nnd

"Council therefore views your new plans to commence Internationalfllght services into this region with equal enthusiasm. We consider that internationalfllghts will assist Infurther enhancing the international status ofthe City ofGreater Geelong whilst also creating significant employment and social benefits.

"Good luck with this project and be assured ofour support. "

The Victorian Govenunent has also expressed their support for the International Passenger Terminal. 'This support is more indicatively outlined in a Jetter from the Victorian Minister for Industry and Trade, The Hon. Thco Theophanous. This correspondence includes the Ministerial statements: "The Victorian Government supports your efforts 10 develop international capabilities at Avalon" and "We look forward to new International air services arising from your investment. which we believe will enhance tourism for the Geelong region as well as the resl ofVictoria ".

Ms Genevieve Overall, the Genera] Manager of the Office of Planning and Urban Design in the Victorian Government wrote "The Department Is strongly supportive ofthe future growth ofaviation activities aJ Avalon Airport and accordingly, we support Cow1cil's facilitation of any new airport-related permit applicatiorufor this site. "

These letters of support. and others. are included as Attachment D.

11. Consultation by AAA with Other Relevant Persons

All Customs, AQIS and Border Agency specifications have been incorporated into the design of the T euninal in accordance with tlle information provided to Linfox on the 15th August 2007 and as specified in the enclosed Attachment B.

10

Attachment A

(' Avalon International Passenger Terminal

Proposed Plans

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Attachment B

Avalon International Passenger Terminal

Border Agency Accommodation

& Infrastructure Requiren1ents, as Provided by

Australian Customs on 15th August 2007

12

Australian Government

Australian Customs Service

Customs House 5 Constitution Avenue CIVIC ACT 2600

15 August 2007

Mr Justin Giddings

Operations Manager

Avalon and Essendon Airport

Essendon Airport pty ltd

Level 1

250 English Street

Essendon Airport 3041

VICTORIA

Dear Mr Giddings

Avalon Airport Application for International Status

I refer to your meetings with the Commonwealth border agencies. Australian Customs (Customs). Australian Quarantine and Inspection Service (AQIS) and Department of Immigration and Citizenship (DIAC), in June 2007, seeking advice regarding Unfox plans for Avalon Airport to be upgraded to an international Airport. I apologise for the time taken to respond to your application. However this has been unavoidable due to related but separate considerations of policy concerning border agency accommodation at airports by the Passenger Facilitation Taskforce.

r The border agencies consider the proposal to upgrade Avalon Airport requires further detail to enable consideration of the viability of the project. Importantly. to assist in the consideration of the proposal you have been advised that a business case should be presented. which outlines plans for establishing an international passenger processing capability appropriate to the services proposed. While I understand that you are seeking some indication of border processing costs for Avalon airport, an estimation of costs will be clearer fallowing receipt of the business case incorporating proposed passenger numbers and growth.

As agreed, to assist with the preparation of the business case, the border agencies have Jointly prepared an indicative guide which details infrastructure reqUirements based on the figures provided verbally to border agencies in June, that is, one flight a day, four flights a week, a maximum of 390 passengers per flight with no simultaneous processing. Border agencies will be required to review infrastructure requirements in light of any sIgnificant changes to these figures.

protecting our borders

As we have discussed, it is not simple to find the appropriate balance between offering Linfox the assistance it needs to mount a successful intemational operation and ensuring that the border agencies are able to adequately carry out the entirety of the border protection roles expected by the AUstralian community in a fiscally responsible manner. I trust that the provision of basic infrastructure requirements will assist you in formulating your business case.

We look forward to receiVIng1he business case from Linfox and meanwhile please do not hesitate to contact me. or Meera Mathai (02-6275 6365), if you have any queries.

Yours sincerely

Craig Sommerville National Manager Passenger Operations Australian Customs Service

"') ""')IHDICATIVE GUIDI! ONLY

Agenr.y

~~

OoHNAOI S

AQIS

AQIS/Cust oms

Customs

Cu,tcms

Customs

DtAC

CIO

DIAC

Customs

olAC DIAC

DIAC

DIAC ~~

Custom$lA QIS

Border Agency Accommodation and Infrastructure Requirements at Avalon Airport

Roomnnfralllructurl N"Mbor R.qulred Purpose Ideal Location SpeciHcaUol'Isft.qulred Slu(aqml

EntrVControl~~'~:!t!"~~~;.I;lii."~~~i

) ")

INtIICATlVE GUIDe ONLY

CUstoms Dog Resp~e Room t

AQtS Oog RespIte Room 1

CUstoms Cog Storage Room 1

AQIS Dog SIOtage Room 1

Cuslans Access to Baggage Conveyel1l

AOIS Aocess to CCTV Images t

Cusloms Cusloms Control Room 1

~~~~ SecondsI)' Inspection~._ ,

CustDms Marshall Point 1

AQIS Gate Risk Assessment (RAe) Point 1

CustomslA Queuing Area (Customs Marshal CIS point to baggage inspection)

Cwtoms X-ray (Customs) 1

CUstoms Baggage Inspecllon BenchesIX-ray benches 2

ClOSe to baggage coledion and Positive pressure venlilatlon, vinyl noor, hand basin wllh hollcold

Rest areas ror Customs dogs (In cages) lavar aClion laps, big enough 10 accommodate 2 dogs In cages,inspectlon areas video monitoring cameras linked 10 II recoiver in Customs office

Close 10 baggage collecllon and Positive pressure ventUation, vlnyt floor. hand basfn wfll1 hollcold

Rest areu for ACIS dogs (In cages) l!Wer action taps, big enough to accommodate 2 dogs i'I cages,inspection areas video moniloring cameru linked to a receiver In ACIS office

---------

Room Co slore dog consumables as well as Close 10 Dog Respi!e Room Small &\orlgl room ror cons:umables and ualni'lg materials wllI1

trailing aids shelving.

Room ID store dog consumables as well as Close 10 Dog Resp~e Room Small storage room for consumables and tralni'lg materials wllI1

training aids shelving.

To anow Customs dogs access to baggage for Before baggage delvery 10 passengers. Area along baggage fillS to enabte safe examinalion or baggage by examination purposes. Customs dogs and handlers.

For monitoring passenger processing and baggage collection areas for Queue managemenl Access te CCTV Images in ACrS office CCTV monllors and resource allocation

High SeaJrily room wilh suffieient space for CCTV monlrors 10 Room for monitoring of Customs CCTV It the Adjacent to Admin office. enable surveillance of passengers rrom amVII to kerbslde. airport and for control of operational staff. WorkstaUons will be required ror staff. Customs 10 provide monitors

and other equipment. ~~~~w..~~w.m-"""I:~;.,\I*";l,i;{j;.1;~{.,~isX$,it:~"~~~~FjI

) ')II/DICATlVIE GUIOEOIjLY -

Customs Space belween Baggage Inspection 2Benches

AQIS Baggage Inspection BenchesIX-ray 6benches

AQIS Space between Baggage Inspection IBenches

Cust\ml$ Inlerview Room 2

Cusloms Controned TtlI1e1 1

Customs ToolRoom 1

Customs Technkal Enrninallon Room 1

Customs Duty Collection Counter , CustomsiA Firearm Oischarge Room 1rep

AQlSICusl Storage Room ,

omslOlAC

AQIS X-ray (QuarantIne)

AQIS Treatment Itoam 1

To minimise passenger congeslion and {or smooth Baggage insfleelion area passenger Oow.

To inspect items declared 10 Quaranline Baggage inspeCllon area

To minimise f/ilIJSengercongestion lind Baggage insped/on area

Room for inleNlewing passentJers. Baggage InspecHon area

Room to perform personal searches of passengers Baggage inspecllon areaand/or their baggage

Room to enable examInation of baggage and ether passenger belongings Baggage inspection !tlla

Room fOt forensic examination of equipment Bal1g8ge inspection areaincludina PCs !!lnd mobile phones Counter for staff to c:ollecl customs Duly parcab!e

! by Incom!na oassenaers Baggage inSlleclion area

Slorege of airport consumables including IPCIOPC

Passenger dearanca may be requIred in the Baggage InspectIon areafuture

A separate room fOt the Cfeaning and disinfecting elasll' to baggage inspection area of ilems of quamnllne eanc:em whl1e passengers walt.

Adequate spacini'll:Jetween baggage inspection benches 10 ensure smooth passenger now. Could PMlllibly shared with AQIS The number or benches 10 acoommodale anliclpated peak arrival numbers. Height. lenglh. ana width alllS des!!;n Iayt)UI 10 accommod:ala AQIS baggage ifl$peclion process and to meet OH&S considerations. Bulll to AQIS s~cificaliQns stainle:;.!} Sleel benchlops. straight benches lockable cupboards. draW$ under bl!tichto2s. l!ghlilJll 600 LUX.

Incline on benches (enlry and exit) 10 reduce manual handling.

X-rev to be slIPIllied bv AQIS. Dala and pOWer DOle 10 each insoeclion and x-rav bench Adequate spacing between baggage inspection benches to ensure smootI'! passenoar lIow.

Room 10 have sufficient space to have desk and mallS fOf intel'lliewing passengers. Interview room willl c:omprete privacy including acoustical reting. Side room 10 hOlne /I con!roOed loilet

Room requires bench fDr staff 10 examine b~ggage wilh possible use of small hand tools and vit.e etc inclJding 1001 storoge space undemeath benctt

Room requires workstation antf are" for analysis. equipmenl

Counter area which needs to he'll' secure slorage for cash and ~miled access fur non counler staff and eubnC.

Room wllh IIhelving

Appropriate infrastructure 10 accommodate ACIS J[r~)' facillies in the ruture

51alntess Steellrough, stainless splashback$. the sinks must be Iilrge enough to accommodate cleaning orlarge objects similar to saddles. IndU!uial flexible s.pray noules with hot and cord water lever aellon tlll2l!l adegual& venlUatiOn. Trougn to drain to selliing lank. benches to be wide sel. stainless sleel. ~ightlng to be 600 LUX at 900 mm from Door. lockable ClJDboards under sinks. A separate stainless steel arealwash bay for cleaning large Items such as bic:ycle,t, camping equipment sumas pliJ$lic lenlll. (a horll.Dl'l\a1 rod across"'e trough to hllng '!lams sud'! as tents 10 hose down with water). Vinyl flooring - surlates which can be easily cleaned and disinfected.

Benches in trealmenl rooms musl be wide sel and stainless steel.

lNorCATIVE GUIOEONI.Y PlIlla30!6

'") )INOICAllVi, GUICE ONt..Y

I\,;usloms office Including Execlllills offices (Airport Manager, Duty Manager)

for AQIS management

IA.d!nini .. lralinn area ror staff

IOIAC 1~pe!Vl~arfm!nager.. . 12 IAdministrallve/operatlOnal workspace

24 AdmlniSlialiveJoperat~-:-ion-a-:l-WO--:rks-pa-ce-----trr.;~~~~~~~~:i;;;:;:---~~~~~~~~~~~~~'-:-:--::-:;----'~~-:--~

RODm (general purpose)

Detained Goods Room

Server Room

SelverRoom

d~~s~serv.room 10

meeting of staff.

for stafl

ForgeneRlI office admrn supplieS indudlng pholocopier/prinler/paper etc

slore clell~ning supplies.

:;lore nixed detained goods

To slore seIzed detained goods Jor treatment

communIcations/server

ISenarala room with an admin office; must be air c:ondllionlld

INDICATIYE GUICE! ONLY Plge" 0/6

') INIlICATIVe GlJID! ONLY ')

AQIS/Cust A well signposted shopfront fadlily to accommodate IT data and

Pubfic EnqulrieslShopfronl 1 pubnc enquiries accessible 10 public, arrivals level phone lines and C8bllng for workstations. IT. data and phone lines oms 10 meet iI!le~requlremenlS

CustomsfA First Aid Room 1 Room ror sId! or Inju

J -;INDICATIV! GUiOE ONI.Y

I ~-

DIAC

Customs

DIAC

DIAC

DIAC

DIAC

DIAC

DIAC

DIAC DIAC

DIAC 'fi;q~~~

Customs

Customs

Customs

Customs

CustomsiA QISlDtAC

~~

AQtS

AOIS

Customs

Customs DIAC DIAC

Staff Toilet (female) 5 not reqUired If able to reacfdy access other staff toilets

WeU signpcsted office I counter, abte 10 accommodate up 10 four

TRS Booth 1 Office I counter for payment of TRS refunds 10 Beyond Outwards Immi9raDon Clearance Customs st::lffwllh separate IT facilities for each staffmember, Also. eligible travellers (Primary Line) and Security ScreenlnQ Queuing facilities I space for passengers. SecurUy screen between

staff and passenge~ may also ba required.

Open plan office area with 2 1 12 Administralivefoperational wor1cspace Must be in operation area/dose proximity Specifications to be provided following cotlsuHalion with liIout

wllr1cstallol'lS to \he prlmal'llllle architeCl prior to desilln commencemenl

Document Examination Bench Area 1 5 Must be In operation area/dose proximity SpeCifications to be provided fOlooMng consultaUon with liIoul

to Ihe primary nne architect prior to desfQn commencement Resources area (printer, scanner, 1 5 Admwlistrati\IeJcperationat workspace

Must be in operation areafdoS8 proximity Specifications to be provided following COI'Isuttalion with fitout forms storaae) to the primary line ardlltect prior to desiQn commencement

Crlet1t Walling Area 1 5 Waiting area for clients while inquiries are taking Contiguous with IntervIew and holding Specifications to be provided following oonsuHation with litaut

!!lace rooms archited prior to desion commencement.

Holding Room 1 12 Room for holding del8inees Must be in proximity to the Inwa(l~s Specifications to be provided following coosull::ltion with fitout Iprimar'lJine - architectllnor to deskl n commencement

Unisex aent To~et 1 5 Adjacent 10 the Interview and holding Specifications 10 De provided following consultation with f,tout room architect prior to desiQn commencement

Passenger Baggage Storage Room 1 10 Specllications to be provided following consultation with maut architect ~riorto design commencement.

Over.1I Circulation Space 66 Exam/PC centrol &\alion klr 1 5

Optional depending on distance of DIAC office space from primary departUfBS conlfol fine Other~~""J.',j!'~~l:f~~~~Iilii!!,w,;~~Jl:n'.!:!iI:~J,.~~,;1I)~~~~';"~:ik.~~~iW,.~m-i':~~~

.A.ttachment C I

Avalon International Passenger Tenninal r I

I

City of Greater Geelong Planning Pennit

r

13

. ...,: :;; :r ~..;. em OF CItE.ATYR!: .....:::::c:=;I'

GEELONG PO SOX 104 TELEPHONE 03 5227 0270 GEfLONG 3220 AUSTRALIA FACSiMILE 03 S2:Ci 027i ox 22063 GERONG wwwgeeiOOillllSlr.llia.c.cm,au

Linfox Properties Avalon 13 February 2008 Locked Bag 9 LARA VIC 3212

PI: 296579 PP: 666f2007/A

Dear Sir/Madam

Re: Planning Permit Application No.: 666/2007/A

Address: 250 Beach Road, Lara r Proposal: Construction Of International Terminal (Avalon Airport) and

ancflllary use of retail premises (under 1000sqm)

I refer to the above application to amend a Planning Permit and wish to ad~ise that under authority delegated by the Responsible Authority, your application for the abovementioned proposal in accordance with the plans submitted has been considered.

After due consideration, it was resolved to grant an Amended Planning Permit.

Please find enclosed e copy of llle Amended Planning Permit.

Should you require any further information please cantad Greg Hayes on 52270455.

Yours sincerely

MELISSA MCBRIDE STATUTORY PLANNING CO-ORDINATOR

STATUTORY PLANNING 131 MYERS STREET, GEELONG

ATTACHMENT

PLSL074

Page 1 of 3

Permit No. 666/2007/APLANNING Planning Scheme Greater Geelong ,Planning PERMIT Scheme Responsible Authority

Greater Geelong City Co~ncll

ADDRESSOFTHELAND 250 BEACH ROAD, LARA

THE PERMIT ALLOWS CONSTRUCTION OF INTERNATIONAL TERMINAL (AVALON AIRPORn AND ANCILLIARY USE OF RETAIL PREMISES (UNDER 1000SQM) IN ACCORDANCE WITH THE ENDORSED PLANS

THE FOLLOWING CONDITIONS APPLY TO THIS PERMIT: r 1. Before the developmen~ starts, amended plans to the satisfaction of the Responsible

Authority must be submitted to and approved by the Responsible Authority. When approved, the plans will be endorsed and will then form part of the permit. The plans must be drawn to scale with dimensions and three copies must be provided. The plans must be generally in accordance with the plans submitted with the application but modified to show: a) Internal layout of :the Terminal setting out all levels and uses, particularly any

retail uses proposed.

b) Show retail uses covering no greater than 1000sqm of ihe entire site.

c) A complete set of elevation drawings d) Layout of the proposed extension to the car park and any changes to access.

e) Landscaping treatment for the terminal and proposed car parking extension.

f) Engineering details of the proposed apron extension g) Details of advertising to be displayed showing specifications and siting

h) Any comments or requirements of the Civil Aviation Authority, Australian Customs Service and the Department of SustainabiUty and Environment to the satisfaction of the Responsible Authority.

2. The development as shown on the endorsed plan(s) must not be altered without the written consent of the Responsible Authority.

3. 'Not more than 1000sqm of leasable floor area within the entire site is to be used for retail premises, to the satisfaction of the Responsible Authority.

4. Prior to the commencement of the development hereby approved, engineer designed drainage plans to the satisfaction of the Responsible Authority must be submitted to and approved by the Responsible Authority. These plans must show pits and pipe sizes, finished surface and existing surface levels, creation of appropriate easements and connection to the existing council drainage network to the satisfaction of the Responsible Authority.

Signature of the Date Issued: 2 July, 2007 Responsible Authority:

Planning and Environment Regulations 1986 Form 4

Page 2 of 3 CONDITIONS OF PLANNING PERMIT NUMBER 666/2007/A CONTINUED

5. Prior to the commencement of the use of the new Terminal, drainage must be constructed in accordance with the approved drainage plans to the satisfaction of the Responsible Authority.

6. The site must be drained to the satisfaction of the Responsible Authority and no storm water. sullage, sewerage or polluted drarnage may drain or discharge from the land to adjoining properties. Note: All stormwater must be discharged to the nominated point approved by the Responsible Authority, to the satisfaction of the Responsible ~~~ .

7. Before the occupation of the new Terminal, theareas set aside in the extension of the car park for the pai1

Page 3 of 3 CONDITIONS OF PLANNING PERMIT NUMBER 666/2007/A CONTINLIED

THIS PERMIT HAS BEEN AMENDED AS FOL.lOWS:

IDate of amendment I Brief descriptlon of amendment

13 February 2008 The permit has been amended to allow:

A change to the permit deSCription to include a retail premises use (under the maximum 1000sqrn).

A new condition 1(b) to reflect the above.

An Increase In the building footprint (from 5200sqm to 7715sqm).

A new condition requiring no larger than 1000sqm of leasable floor area floor for the entire site to be used for retail premises.

r Note: Under Part 4, Division 1A of the Plannin