Agenda of Ordinary Meeting - 8 March 2017...Mar 08, 2017 · Operating Expenditure of $48.9M is...

AGENDA

of the

ORDINARY MEETING

CHAIRMAN: Cr MW Curran (Mayor)

Held in the Boardroom

Town Hall

2 Caledonian Hill

Gympie Qld 4570

On Wednesday, 08 March 2017

At 9am

The Corporate Plan 2014-2019 provides a clear framework and direction in relation to

Council's vision, purpose, values and key strategic objectives.

Our vision for the Gympie region is to be the natural choice to live, work and play.

Our purpose is to actively serve our community and plan for the future of the region.

Through our values we are:

Accountable

We take responsibility for our actions, we will be accessible and fair.

Consistent

Our actions will reflect Council's guidelines and practices at all times.

Appreciative

We value the opportunities we have, and look for the best in our people,

our organisation and our community.

Communicative:

We will keep people informed, consult with the community and actively

listen to and respond to their input.

Respectful:

We treat people with dignity, courtesy and respect.

We recognise and support everyone's contributions.

Council's activities are aimed at achieving our vision and are focused into the following

five key strategic themes/objectives:

Infrastructure Planned, connected and safe

Economic development Vibrant, strong and resilient

Governance Cohesive, responsible and transparent

Environment Sustainable, managed and healthy

Social wellbeing Active, diverse, creative and empowered

The above framework informs Council's decision making and guides our organisational

management and operational activities.

Ordinary Meeting Agenda 8 March 2017 1

Gympie Regional Council

Gympie Regional Council ORDINARY

Mayor MW Curran (Chairman),

Crs MA McDonald, GC Hartwig, MS Gear, DW Dodt, DH Stewart, HT Smerdon,

WR Leitch and JK Cochrane

CONTENTS:

DISCLOSURE OF INTERESTS BY COUNCILLORS ............................................................................... 2

SECTION 1: OPEN WITH PRAYER .................................................................................................. 2

SECTION 2: APOLOGIES / LEAVE OF ABSENCE ............................................................................ 2

SECTION 3: CONFIRMATION OF MINUTES .................................................................................. 2

SECTION 4: PETITIONS ................................................................................................................... 2

SECTION 5: PLANNING AND DEVELOPMENT .............................................................................. 2

SECTION 6: CORPORATE AND COMMUNITY SERVICES ............................................................. 3

6.1 JANUARY MONTHLY FINANCIAL REPORT .................................................................................................................................. 3

SECTION 7: OFFICE OF THE CEO .................................................................................................... 6

7.1 SECOND QUARTER UPDATE - OPERATIONAL PLAN 2016-2017 .......................................................................................... 6

7.2 REVIEW OF AUDIT AND RISK MANAGEMENT COMMITTEE CHARTER ..................................................................................... 8

7.3 REPORT FROM AUDIT AND RISK MANAGEMENT COMMITTEE - FEBRUARY 2017 MEETING ............................................ 10

7.4 NOTIFIED MOTION - MARY VALLEY RATTLER ........................................................................................................................ 12

SECTION 8: INFRASTRUCTURE SERVICES ................................................................................... 14

SECTION 9: IN COMMITTEE ......................................................................................................... 15

9.1 JOINT PROCUREMENT OF LANDFILL ENVIRONMENTAL MONITORING SERVICES FOR WASTE MANAGEMENT

FACILITIES ..................................................................................................................................................................................... 15

9.2 GYMPIE WATER ALLOCATION AND WATER SECURITY ........................................................................................................... 16

SECTION 10: ATTACHMENTS......................................................................................................... 17

6.1 JANUARY MONTHLY FINANCIAL REPORT

ATTACHMENT 1 JANUARY 2017 MONTHLY FINANCIAL REPORT .............................................................................. 18

7.1 SECOND QUARTER UPDATE - OPERATIONAL PLAN 2016-2017

ATTACHMENT 1 SECOND QUARTER PERFORMANCE REPORT - OPERATIONAL PLAN 2016-2017 ...................... 27

ATTACHMENT 2 ACTIVITIES UPDATE - SECOND QUARTER OPERATIONAL PLAN 2016-2017.............................. 41

7.2 REVIEW OF AUDIT AND RISK MANAGEMENT COMMITTEE CHARTER

ATTACHMENT 1 AUDIT AND RISK MANAGEMENT COMMITTEE CHARTER ............................................................... 59



DISCLOSURE OF INTERESTS BY COUNCILLORS

SECTION 1: OPEN WITH PRAYER

A prayer for the advancement of the region and the true welfare of its people.

One Minute’s silence for family and friends of deceased residents of the

region.

SECTION 2: APOLOGIES / LEAVE OF ABSENCE

SECTION 3: CONFIRMATION OF MINUTES

RECOMMENDATION

That the Minutes of the Gympie Regional Council Ordinary Meeting held

on 15 February 2017 be taken as read and confirmed.

SECTION 4: PETITIONS

SECTION 5: PLANNING AND DEVELOPMENT



SECTION 6: CORPORATE AND COMMUNITY SERVICES

6.1 January Monthly Financial Report

PORTFOLIO: Governance, Finance, Disaster Management

DIRECTORATE: Corporate and Community Services

DOC ID:

LINKS TO CORPORATE/OPERATIONAL PLAN

STRATEGIC THEMES:

3. Governance - cohesive, responsible and transparent

1. BACKGROUND AND PREVIOUS COUNCIL CONSIDERATION

Council’s financial report as at 31 January 2017 is provided for Council’s

information.

The January 2017 financial statements provide a comparison of actual results

to the first budget review adopted on 7 December 2016 (Council Minute

Number M19/12/16).

Council, at its meeting of 14 February 2017 adopted the 2016/2017 Second

Budget Review, as presented within the report titled ‘2016/2017 Second

Budget Review’ (Council Minute Number M07/02/17).

2. REPORT

Operating Revenue of $45.9M is $0.4M below budget

Operating Expenditure of $48.9M is $4.5M below budget

Operating Surplus (deficit) of ($2.9M) is $4M above budget

Capital Income of $4.0M is $3.5M below budget

Net Surplus of $1.0M is $0.5M above budget

The variance for the January year to date operating revenue is primarily as a

result of timing delays in processing waste management revenue transactions

and the significantly higher than anticipated take up of the rates discount by

ratepayers for the first rates run.

The positive variance for January’s operating expenditure is primarily due to:

• Favourable weather conditions which have reduced maintenance costs for

Infrastructure Services activities, especially parks and reserves,

• Depot shut down over the Christmas/New Year period, resulting January

being a shorter than average working month, and



• The timing of operational project expenditure not being linear in nature, i.e.

there can be gaps between planning and completion stages. It is forecast that

the costs of these projects will be fully expended by 30 June 2017.

Capital Income received to the 31 January 2016 is under budget due to delays

in the receipt of grant and subsidy funding from Federal and State

departments. Approximately $4.2M in capital subsidies have been received by

Council in the 2 months since 31 December 2016.

In conjunction with the role out of our new financial management reporting

module, Financial Services will continue to work with Council Directorates to

adjust the monthly budgets so that they better reflect the timing of

transactions, therefore providing more valid comparisons.

The Statement of Financial Position as at 31 January 2017 compares the

Council’s Assets, Liabilities and Community Equity position to the previous

financial year, for the same period, being January 2016. Overall results are

tracking as expected.

The Investment Report as at 31 January 2017 compares the Council’s invested

funds to the previous financial year. This comparison shows the Council

currently has $56.8M invested, compared with $75.6M at this time last

financial year. The reduction in investments primarily reflects the use of cash

to fund the Aquatic Centre in lieu of borrowings as initially indicated in the

budget. The cash position is further impacted by the drop in revenue as noted

above. The majority of funds are held with the Queensland Treasury

Corporation and receive an interest rate return of approximately 2.6%.

The Rate Collection Report as at 31 January 2017 compares the Council’s Rate

collection to the previous financial year (January 2016). Currently the rates

arrears is 15.36% (compared with 19.59% in January 2016). The resulting

decrease in arrears primarily reflects the 10% discount available to ratepayers

for the first half rate notice in 2016/17 compared to 5% discount for the same

period in 2015/16. A better picture will be available after the second half

yearly rating period in February 2017 where the removal of the credit card

surcharge is also likely to have a positive impact.

The Capital Budget Year to Date Report (by Directorate and by Asset Type)

and the associated graphs show that as at 31 January 2017, $30M of Council’s

capital works program was financially committed/expended against a budget

forecast of $32.6M. This variance is consistent with expenditure on capital

projects which tends to be somewhat lower in the initial planning and design

phases.

3. BUDGET IMPLICATIONS

There are no significant budget implications stemming from the January

transactions



4. POLICY IMPLICATIONS

Monthly management reporting and quarterly forecasts are in line with

Council policy and the Local Government Act 2009.

5. CONSULTATION

Consultation has occurred with all Managers, Directors and the Chief Executive

Officer.

6. CONCLUSION

Council’s financial statements for the month ending 31 January 2017 provide a

comparison of actual results to the first quarter budget review adopted by

Council (Council Minute Number M19/12/16).

ATTACHMENTS

⇩1. January 2017 Monthly Financial Report

RECOMMENDATION

That the financial statements "as attached" for the period ended

31 January 2017 be noted.



SECTION 7: OFFICE OF THE CEO

7.1 Second Quarter Update - Operational Plan 2016-2017


DIRECTORATE: Office of the CEO

DOC ID:


STRATEGIC THEMES:

1. Infrastructure - planned, connected and safe

2. Economic development - vibrant, strong and resilient


4. Environment - sustainable, managed and healthy

5. Social wellbeing - active, diverse, creative and empowered


Council is required to prepare and adopt an annual operational plan for each

financial year period that is consistent with its 5-year corporate plan and

annual budget. The Operational Plan 2016-2017 was adopted by Council on

6 July 2016 via Minute M12/07/16.

The Local Government Regulation 2012 requires that the Chief Executive

Officer present Council with a written assessment on a quarterly basis of

progress being made by the local government in implementing its annual

operational plan. Council last reviewed its progress in implementing the

operational plan in November 2016 via Minute M13/11/16.

This second quarter update report covers the period from 1 October 2016

through 31 December 2016.

2. REPORT

The Local Government Act 2009 (Act) prescribes ensuring the local

government achieves its corporate plan as a key responsibility for all

Councillors. Employees must also carry out their duties under the Act in a way

that ensures the local government achieves its corporate plan.

With the activities in the operational plan being aligned directly to the

corporate plan strategies, actions and outcomes, the quarterly performance

update reports on the operational plan are a strong indicator of progress

being made by Council toward achieving its corporate plan.

The Operational Plan 2016-2017 directly links 107 activities planned across the

financial year period to the 31 five year actions identified in the Corporate Plan

2014-2019. These activities and actions further align to the 17 strategies and



five key strategic themes that form the overall framework for both corporate

and operational plans.

The Second Quarter Performance Report (refer attached) highlights that at the

end of the period, 83 per cent of the operational activities referred to above

have been reported as being either ‘on track’ as planned, or ‘complete’. Nine

percent of activities recorded a status of ‘delayed/ revised’ with the remaining

eight per cent of activities being reported as ‘to be commenced’. Fifteen per

cent of activities have been identified as being complete as at the end of the

first quarter.

Where activities have been shown as ‘delayed/revised’, or ‘to be commenced’,

relevant commentary has been included in the Activities Update Second

Quarter Report to support that status. (Refer attached)

It should be noted that various activities with a status of ‘to be commenced’

have been identified in the Operational Plan as having target completion dates

beyond the Second Quarter. In a number of cases work on those activities has

been scheduled to commence in subsequent quarters.

The Second Quarter Performance Report highlights that overall Council is on

track to achieve the various performance targets it has set within its annual

operational plan.


Council’s operational plan must be consistent with its annual budget and

corporate plan.


The operational plan helps guide policy development and implementation

across the financial year period based on the vision and key strategic

objectives outlined in Council’s 5-year corporate plan.

5. CONSULTATION

Office of the CEO

All directorates

6. CONCLUSION

Council is required to review progress being made toward the implementation

of its annual operational plan on a quarterly basis. The Second Quarter

Performance Report highlights that Council is currently on track to achieve the

performance targets set within its operational plan.

ATTACHMENTS

⇩1. Second Quarter Performance Report - Operational Plan 2016-2017

⇩2. Activities Update - Second Quarter Operational Plan 2016-2017

RECOMMENDATION

That the Second Quarter Performance Report on the Operational Plan

2016-2017, as presented, be received.



7.2 Review of Audit and Risk Management Committee Charter



DOC ID:


STRATEGIC THEMES:



The Audit and Risk Management Committee (ARMC) is required to review its

Charter at least annually to ensure that it remains consistent with legislation

and Council’s objectives and responsibilities.

A review of the Charter was considered at the February 2017 meeting of the

ARMC.

Council last reviewed the Charter in April 2016 via resolution M08/04/16.

2. REPORT

The ARMC has recently reviewed its Charter with a number of amendments

being recommended for Council’s consideration.

The lack of a formal Code of Conduct for the independent members of the

ARMC had been raised. Councillor members of the Committee are obliged to

act at all times within their legislative roles, responsibilities and obligations

under the Local Government Act 2009, and in line with Council’s Councillor

Code of Conduct. Neither of the above covers the expected conduct of

independent members of the ARMC. Council’s Staff Code of Conduct also

does not directly apply to the independent Committee members.

Following a review of how these matters are being dealt with at various

Queensland councils, a number of amendments are proposed resulting in

additional sections being added to the Charter as below:

- Code of Conduct

- Confidentiality

- Privacy

The important area of dealing with Conflicts of Interest was already catered for

in the existing version of the Charter. That section has been maintained

without amendment and grouped together with the three new items above.

The inclusion of additional documents listed under the ‘Supporting

Documents’ heading on page 8, and a minor rewording of the second



sentence under the heading of ‘Authority’ on page 3 round out the proposed

amendments recently considered and endorsed by the ARMC.

It is considered that the proposed amendments to the Charter address an

identified gap under current documentation in formalising an expected Code

of Conduct covering all members of the ARMC. The above approach is in line

with that being taken by a number of Queensland councils.

Any changes to the ARMC Charter must be adopted by Council resolution.


There are no budget implications associated with the proposed amendments

to the Charter.


The proposed amendments strengthen Council’s policy in relation to the

conduct of its ARMC.

5. CONSULTATION

ARMC

CEO

Manager Governance

General review of the approach taken by various Queensland local

governments in relation to this matter

6. CONCLUSION

Following a review of the ARMC Charter, a number of amendments have been

proposed as highlighted throughout this report. The ARMC endorsed the

amendments at its February 2017 meeting for Council’s further consideration.

The amendments seek to formalise Council’s position on the expected

conduct of all Committee members in undertaking their important role as part

of the ARMC.

ATTACHMENTS

⇩1. Audit and Risk Management Committee Charter

RECOMMENDATION

That the amended Charter of the Audit and Risk Management Committee,

as presented, be adopted.



7.3 Report from Audit and Risk Management Committee - February 2017

Meeting



DOC ID:


STRATEGIC THEMES:



Section 211 (1)(c) of the Local Government Regulation 2012 requires that the

Audit and Risk Management Committee (Committee) is to provide a written

report to the local government about the matters reviewed, including any

recommendations resulting from same, as soon as practicable following each

meeting held by the Committee.

Council last considered an update from the Committee in December 2016 to

which Minute M12/12/16 refers.

The Committee held its most recent meeting on 15 February 2017.

2. REPORT

A full agenda of items (178 pages) was considered by the Committee at its

15 February 2017 meeting which included the following significant matters:

(1) Self-Assessment Performance Review of the Committee based on

Queensland Treasury template guidelines

(2) Implementation update on Council’s Related Party Disclosure Policy

(3) Implementation update on Council’s Fraud Corruption Prevention and

Control Plan

(4) Review of the Committee Charter to cover code of conduct related

matters for independent and Councillor members

(5) Asset Valuation Strategy

(6) Update on filling the vacant Internal Auditor position

(7) Queensland Audit Office Financial Audit Survey

(8) Risk Management Framework, Register and Control Activities

(9) Proposed audits on systems relating to the protection of threatened

species, and procurement

(10) Establishment of an Issues Register for monitoring the resolution of

matters raised by, and brought before the Committee as relevant to

its Charter

The Committee has recommended that a number of amendments be made to

its Charter with a view to formalising an expected code of conduct for all



Committee members. This matter will be dealt with as a separate item on the

meeting agenda.

Education and training requirements were further considered in response to

the ongoing complex nature of matters the Committee is required to deal with

as part of its Charter and legislative role. The Committee is recommending to

Council that all Councillors, and independent members of the Committee, who

have not already done so, undertake the Australian Institute of Company

Directors (AICD) course.


Training costs for the AICD course, if approved, would form part of annual

Budget considerations.


Amendments have been recommended to the Committee’s Charter aimed at

strengthening Council’s policy for the governance of the Committee.

5. CONSULTATION

Audit and Risk Management Committee

CEO

6. CONCLUSION

The Committee continues to operate effectively in its independent oversight

role to the extent prescribed within the legislation and the Committee’s

Charter. A significant number of matters were considered by the Committee at

its February 2017 meeting as detailed within this report.

RECOMMENDATION

That:

1 The report from the Audit and Risk Management Committee on

its 15 February 2017 meeting be received and noted.

2 All Councillors, and independent members of the Audit and Risk

Management Committee, who have not already done so,

undertake the Australian Institute of Company Directors course.



7.4 Notified Motion - Mary Valley Rattler

PORTFOLIO: Economic Development


DOC ID:


STRATEGIC THEMES:

2. Economic development - vibrant, strong and resilient

1. REPORT

Cr Daryl Dodt has given notice of the following proposed motion:

Now that the Mary Valley Rattler is to be returning, I would like to move:

1. That council in conjunction with the Rattler Railway Company and the

Gympie and District Historical society investigate the possibilities of greater

integration of the Rattler with the Gold Mining Museum and the possible

development of new attractions and experiences at and around the museum.

2. That as part of the investigation, the following be considered,

- Development of an overarching plan for the Gold Mining Museum Precinct

including Tourist access from Monkland Station to the Gympie Gold Mining

Museum and the Development of a historical underground gold mining

experience.

- Investigation of the involvement of mining engineering students and

academics in the development of this as an ongoing university project.

- Restoration and use of other heritage mining buildings around the museum

precinct.

-Facilitation of the development of a tourist 'package' incorporating the Rattler

and Museum experience as well as the Scottish mine site and the retort house.

-Greater council involvement in improving the Gold Mining Museum experience

through consultation with volunteers and stake holders.

3. That the outstanding work of the Gympie and District Historical Society in

developing the Mining Museum be acknowledged.



MOTION

That:

1. That council staff in conjunction with the Rattler Railway company

and the Gympie and District Historical society investigate the

possibilities of greater integration of the Rattler with the Gold

Mining Museum and the possible development of new attractions

and experiences at and around the museum.

2. That as part of the investigation, the following be considered,

- Development of an overarching plan for the Gold Mining Museum

Precinct including Tourist access from Monkland Station to the

Gympie Gold Mining Museum and the Development of a historical

underground gold mining experience.

- Investigation of the involvement of mining engineering students

and academics in the development of this as an ongoing

university project.

- Restoration and use of other heritage mining buildings around the

museum precinct.

- Facilitation of the development of a tourist 'package'

incorporating the Rattler and Museum experience as well as the

Scottish mine site and the retort house.

- Greater council involvement in improving the Gold Mining

Museum experience through consultation with volunteers and

stake holders.

3. That the outstanding work of the Gympie and District Historical

Society in developing the Mining Museum be acknowledged.



SECTION 8: INFRASTRUCTURE SERVICES



SECTION 9: IN COMMITTEE

9.1 Joint procurement of landfill environmental monitoring services for

waste management facilities

PORTFOLIO: Water and Sewerage and Waste Management

DIRECTORATE: Infrastructure Services

DOC ID:

This item is in-committee in accordance with s275(1)(e) of the Local

Government Regulation 2012 - contracts proposed to be made by it.



9.2 Gympie Water Allocation and Water Security

PORTFOLIO: Water and Sewerage and Waste Management


DOC ID:

This item is in-committee in accordance with s275(1)(h) of the Local

Government Regulation 2012 - business for which a public discussion would

be likely to prejudice the interests of the local government or someone else, or

enable a person to gain a financial advantage.



SECTION 10: ATTACHMENTS

6.1 January Monthly Financial Report

ATTACHMENT 1 JANUARY 2017 MONTHLY FINANCIAL REPORT ...................................... 18

7.1 Second Quarter Update - Operational Plan 2016-2017

ATTACHMENT 1 SECOND QUARTER PERFORMANCE REPORT - OPERATIONAL

PLAN 2016-2017 ...................................................................................... 27

ATTACHMENT 2 ACTIVITIES UPDATE - SECOND QUARTER OPERATIONAL PLAN

2016-2017 ................................................................................................. 41

7.2 Review of Audit and Risk Management Committee Charter

ATTACHMENT 1 AUDIT AND RISK MANAGEMENT COMMITTEE CHARTER ........................ 59


Item 6.1 January Monthly Financial Report

Attachment 1 January 2017 Monthly Financial Report



Item 7.1 Second Quarter Update - Operational Plan 2016-2017

Attachment 1 Second Quarter Performance Report - Operational Plan 2016-2017




Attachment 2 Activities Update - Second Quarter Operational Plan 2016-2017



Item 7.2 Review of Audit and Risk Management Committee Charter

Attachment 1 Audit and Risk Management Committee Charter


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