AGENDA


Assets and Infrastructure Committee

 

Monday, 09 December 2019

7.00pm

 

Dragon Room, First Floor,

Georges River Civic Centre

Hurstville

 

 

 

 

 

 

 

 

 

 

 


Georges River Council – Assets and Infrastructure Committee Meeting -  Monday, 9 December 2019                     Page 2

 

          Assets and Infrastructure Committee Meeting

ORDER OF BUSINESS

 

1.      Opening

2.      Acknowledgement of Country

3.      Apologies / Leave of Absence

4.      Notice of Webcasting

5.      Disclosures of Interest

6.      Public Forum

7.      Confirmation of Minutes of Previous Meeting  

MINUTES: Assets and Infrastructure Committee - 11 November 2019

8.      Committee Reports

ASS039-19        Georges River Traffic Advisory Committee Meeting - 3 December 2019

(Report by Coordinator Traffic & Transport)............................................................... 3

ASS040-19        Ken Rosewall Tennis Centre Operational Management Services Agreement

(Report by Manager Premium Facilities)................................................................. 10

ASS041-19        T19/017  Tender for the Construction of Penshurst Park Sporting Hub - Stage 2

(Report by Manager, Project Delivery)...................................................................... 13

ASS042-19        Statutory Processes and Indicative Timeline for the Development of a New Regional Aquatic Facility in Georges River

(Report by Manager, Project Delivery)...................................................................... 17

ASS043-19        Netstrata Jubilee Stadium Cleaning and Waste Management Services T19/019

(Report by Manager Premium Facilities)................................................................. 28  

 

 


Georges River Council – Assets and Infrastructure Committee Meeting -  Monday, 9 December 2019                     Page 3

Committee Reports

Item:                   ASS039-19        Georges River Traffic Advisory Committee Meeting - 3 December 2019 

Author:              Coordinator Traffic & Transport

Directorate:      Assets and Infrastructure

Matter Type:     Committee Reports

 

 

 

Recommendation:

That the recommendations contained within the minutes of the Georges River Traffic Advisory Committee Meeting held on 3 December 2019 be adopted by Council.

 

Executive Summary

1.      The Minutes of the Georges River Traffic Advisory Committee Meeting held on 3 December 2019 are submitted to the Assets and Infrastructure Committee for consideration and to Council for adoption.

 

Background

2.      The Traffic Advisory Committee Meeting of 3 December 2019 was held at Georges River Civic Centre commencing at 10.00am.

 

Financial Implications

3.      Budget allocation

 

a.      RMS Traffic Facilities Grant            $400,000

b.      Bus Stop Upgrade Program            $60,000

 

4.      Balance to date

 

a.      RMS Traffic Facilities Grant            $280,000

b.      Bus Stop Upgrade Program            $60,000

 

5.      Estimated cost of works recommended by the Traffic Advisory Committee Meeting of 3 December is $28,400.  Dissection: $24,400 to be allocated from the RMS Traffic Facilities Grant and $4,000 to be allocated from the Events Budget for the Magic of Christmas and Australia Day events at Carss Bush Park.

 

 

File Reference

D19/284020

 

 

ATTACHMENTS

Attachment 1

Minutes - Traffic Committee 3 December 2019

 


Georges River Council -         Assets and Infrastructure Committee Meeting - Monday, 9 December 2019

ASS039-19             Georges River Traffic Advisory Committee Meeting - 3 December 2019

[Appendix 1]          Minutes - Traffic Committee 3 December 2019

 

 

Page 9

 

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Georges River Council – Assets and Infrastructure Committee Meeting -  Monday, 9 December 2019                     Page 12

Item:                   ASS040-19        Ken Rosewall Tennis Centre Operational Management Services Agreement 

Author:              Manager Premium Facilities

Directorate:      Assets and Infrastructure

Matter Type:     Committee Reports

 

 

 

Recommendation:

That Council extends the Management Agreement for Ken Rosewall Tennis Centre to Evolution Tennis for a further period of three (3) years to 1 September 2022 in accordance with the original contract.

 

 

Executive Summary

1.      This report is presented to Council to seek approval to exercise a three (3) year option with Evolution Tennis for the management of the Ken Rosewall Tennis Centre.

Background

2.      Council at its meeting on 1 August 2016 resolved to award the Management Agreement for a Ken Rosewall Tennis Centre to Evolution Tennis.

3.      This agreement includes three plus three (3+3) year extension options that rest with Council to authorise.

Evolution Tennis – Performance

4.      Evolution Tennis is a company operated by Sandor Platthy that manages the Ken Rosewall Tennis Centre.

Prior to 2016, Evolution Tennis has a history of managing the centre since 2012.

The following account is provided by Evolution Tennis in regard to the operations of the centre over the first three year period of their management agreement:-

Over the last three years the participation at the centre has grown and maximised by organised programs that cater for diverse age groups and standards of players to become one of the busiest eight court tennis centres in Sydney.

Programs and court usage at the Ken Rosewall Tennis Centre

School term coaching:

5.      Group classes for kids are run weekdays in the afternoon/evenings and on Saturday mornings. The centre has multiple classes running at the same time, and have only stopped building on these numbers to allow for casual court hire.

Evolution Tennis hold advanced squads for our tournament players/ higher level juniors 4 nights a week and have our Elite group on Tuesday nights for our best juniors, some of which have completed high school and are still attending.

School sessions are arranged with Oatley West Public school, Penshurst Marist brothers, GRC Penshurst Girls and GRC Peakhurst. Inter district trials are also held at the Ken Rosewall Tennis Centre.

Private tuition is available 7 days a week for both adults and kids.

On Monday and Wednesday mornings the centre arranges adult social coaching groups with between 6 and 16 adults attending each class.

On weeknights the centre hosts 3 adult group classes. 1 women’s class and 2 unisex classes.

Holiday Tennis Programs:

6.      Four day tennis camps are held every school holiday. These camps are a great success and accommodate between 70 and 120 kids attending each holiday. The most recent camp in October 2019 was our largest ever with 130 kids attending per day. Ken Rosewall has attended the tennis camps on several occasions. He has been kind enough to talk to the kids about their tennis, answer questions about his tennis career, sign prizes and take pictures with the kids.

Smaller squad camps are also held in the second week of holidays for tournament players. This is limited as the ladies competitions also run in the second week of holidays.

Junior Competitions:

7.      The Ken Rosewall Tennis Centre has a Thursday Junior competition that is designed to get students ready for the ISLTA (St George Sutherland Area) competitions, inter district tennis, Tennis Australia tournaments.

The centre holds 8 ISLTA Saturday morning junior competitions teams and also exclusively hold the Premier Grade (formally called A1). The top grade has been held exclusively at the Ken Rosewall Tennis Centre for over 10 years.

Courts are allocated each January for a Tennis Australia knock out tournament.

Adult Competitions:

8.      Evolution Tennis is a long-term supporter of the ISLTA (St George Sutherland Area) competitions and have a strong showing of teams in the Wednesday night mixed, Tuesday and Thursday Morning Ladies, Saturday Afternoon Mixed competitions and the Sunday Morning Competition/Wanganui Cup.

Court Hire:

9.      There is a strong base of permanent bookings, groups that have been with the centre for up to 40 years.

Tennis groups such as the Revesby workers social Tennis club use the venue weekly for tennis and social dinners.

Long term Tennis families book courts and make use of the BBQs and play areas.

Along with this there is a good showing of casual court hire which has increased over the last three years.

Community programs:

10.    The centre often sponsor students for Duke of Edinburgh Award.

Evolution Tennis regularly donate racquets/tennis equipment, Tennis Camp vouchers or Court Hire Vouchers to local schools.

The company is registered with the Active Kids Program and the majority of juniors have taken up this government initiative and partially paid for their tennis tuition using these vouchers.

 

 

Other Centre Activity:

11.    The club house is regularly utilised for children’s parties and special occasions that often provides exposure to new clients and introduces new members of the of the community to tennis.

The retail shop provides services such as sale of tennis equipment, racquet re-stringing/re-gripping and beverages available for sale to patrons.

Conclusion

12.    The Ken Rosewall Tennis Centre is well utilised by Evolution Tennis across all sectors of the tennis community, and the attention by Evolution Tennis to maintenance and WHS issues on the site, reveal responsible stewardship of Council’s asset. There has been no known issue in relation to the operational management of the centre over the last three years.

Financial Implications

13.    No budget impact for this report.

Risk Implications

14.    No risks identified.

 

Community Engagement

15.     There is no community engagement required.

 

File Reference

17/653

 

 

 

  


Georges River Council – Assets and Infrastructure Committee Meeting -  Monday, 9 December 2019                     Page 16

Item:                   ASS041-19        T19/017  Tender for the Construction of Penshurst Park Sporting Hub - Stage 2 

Author:              Manager, Project Delivery

Directorate:      Assets and Infrastructure

Matter Type:     Committee Reports

 

 

 

Recommendation:

(a)     That under Section 178 (1) (a) of the Local Government (General) Regulation 2005, Council accept the tender that is recommended for T19/017 Construction of Penshurst Park Sporting Hub – Stage 2 as outlined in the confidential attachment.

(b)     That the General Manager be authorised to sign the contracts with the preferred Principal Contractor on behalf of Council.

(c)     That Council inform the unsuccessful Tenderers of the resolution.

 

 

Executive Summary

1.      The purpose of this report is to advise Council of the results of the tender process completed in accordance with Part 3, Division 1, Section 55 and Section 377 of the Local Government Act 1993, for T19/017 Construction of Penshurst Park Sporting Hub – Stage 2 and to seek resolution from Council on entering into a Contract with a successful Tenderer to appoint as the Principal Contractor to carry out the proposed contract works.

2.      This report explains the background for Council to decide if it wishes to enter into a contract with the entity recommended as the Principal Contractor. The report details the tender process supporting the recommendation for Council’s consideration, with the confidential matters being contained within the confidential attachments.

Background

3.      In late 2015, the former Hurstville City Council adopted the Penshurst Park Plan of Management including detailed Master Plan for the site.  Key elements in the park:

·        Indoor cricket centre

·        Youth facility

·        Synthetic field and grandstand

·        Expansion to Hurstville Aquatic Leisure Centre to include additional multipurpose courts

·        Relocated children’s playground

·        Outdoor gym equipment

·        Passive recreation spaces

 

4.      The park would create a Sporting Hub within the region to accommodate both passive and active recreation.

5.      In December 2015, Council appointed Baker Kavanagh Architects Pty Ltd the Contract for the Architectural Services for the Penshurst Park Sporting Hub.  The project was then divided into three (3) stages which included:

a.   Stage 1 – Construction of Indoor Cricket Centre

b.   Stage 2 – Synthetic Field, Grandstand, Youth Facility and open space elements

c.   Stage 3 – Expansion to Hurstville Aquatic Leisure Centre.

6.      In May 2018 Georges River Council received a $1,000,000.00 Commonwealth Community Development Grant to support and assist Council in the construction and delivery of the synthetic football field which is a component of the project.

7.      A development application was lodged for the Stages 2 and 3 of the Penshurst Park Master Plan and the consent was granted by the South Sydney Planning Panel on 13 March 2018.

8.      The key features of Stage 2 Penshurst Park Sport Hub Project:

a.   Youth Centre and Multipurpose Court

b.   Grandstand

c.   Outdoor Gym Equipment

d.   Male, female and accessible amenities and change rooms

e.   Synthetic sports field with hydraulic cricket wicket

f.    Car park upgrade.

 

9.      Due to the large scale of the project, Georges River Council engaged Norton Rose Fullbright lawyers to develop the Construction Contract and act as Probity Advisor for this tender.

 

10.    The Director Business and Corporate Services appointed a Tender Evaluation Committee for the tender prior to advertising, and all tender documentation was reviewed by the Manager Project Delivery prior to issuing. 

 

11.    Tender documentation included:

a.   RFT T19/017 – Construction of Penshurst Park Sporting Hub Stage 2

b.   General Conditions of Contract Incorporating AS4000-1997 (as amended)

c.   Approved Development Consent and Construction Certificates (and approved plans)

d.   Detailed Architectural, Electrical, Structural, Mechanical, Acoustic, Landscape plans and specifications for the facility

e.   Bill of Quantities for the Tender

f.    Addendum 1-9

 

12.    The Tender Evaluation Committee determined the Tender Evaluation Criteria prior to advertising of the tender.  The essential criteria and mandatory criteria was determined as follows:

 

Essential Criteria

a.      Best value for money:

i.   Lump Sum price and trades break-up prices;

ii.  Schedule of hourly rates; and

iii. Financial standing and position of the Tenderer.

b.   Demonstrated capacity and technical ability to carry out the works under the Contract:

i.   Specific experience and expertise in design and construct contracts;

ii.  company profile; current commitments for main and sub-contractors;

iii. proven capacity to meet deadline; and

iv. plant and equipment available to complete the works.

c.       Demonstrated managerial and technical capability, qualifications, experience:

i.  quality experience and  quality references of the Tenderer;

ii. nominated site personnel CVs and previous work history; and

iii.   nominated sub-contractors CVs and previous work history with the Tenderer.

d.      Capacity to achieve the program:

i.   program shows critical paths and detailed tasks required to achieve deliverables for the project; and

ii.  sequencing of the works.

e.      Proposed methodology:

i.   traffic and  pedestrian  management plan; and

ii.  storage of materials and disposal of waste (including potential asbestos).

f.       Demonstrated capacity to fulfil the WHS and environmental requirements including insurances.

         

Mandatory Criteria

a.     Insurances:

          i.               Public Liability min. $20M

          ii.              Workers Compensation

          iii.             Comprehensive Vehicle(s) Insurance.

b.     Compliance with quality assurance standards and systems of quality assurance.

c.      Degree of compliance with Work Health & Safety requirements.

d.     Conformity and compliance of the Tenderer’s submission with the RFT.

 

13.    One hundred (100) Requests for Information and nine (9) Addendas were issued during the tender period.

14.    T19/017 Construction of Penshurst Park Sporting Hub Stage 2 was advertised in the Sydney Morning Herald and Tenderlink on 17 September 2019, 18 September and 21 September 2019. 

 

TENDERS RECEIVED

15.    Council’s Tender Opening Committee (TOC) then proceeded to open the tender boxes in accordance with the Council’s Procedure for Opening of Tenders in the presence of the Independent Observer.  Firstly the Council’s physical Tender Box located at the Council’s Foyer was opened and the tenders received were recorded. There were no Tenderers present at the opening of the physical Tender Box.  There were no tenders received in the physical Tender Box.

16.    The Tender Opening Committee then opened the secure electronic tender boxes: www.tenderlink/georgesriver.com.au and Council’s electronic tender box, tenders@georgesriver.nsw.gov.au.

 

17.    The six (6) tender submissions were received as follows.

a.   ADCO Constructions Pty Ltd

b.   Degnan Constructions Pty Ltd

c.   J&CG Constructions Pty Ltd

d.   Lanskey Constructions Pty Ltd

e.   Lloyd Group Pty Ltd

f.    Project Coordination (Aust) Pty Ltd

 

18.    There were no late tenders and all tenders received met the requirements for submission of tenders as set out in the Request for Tender.

 

19.    As at Close of Business on 12 November 2019 all tenders recorded in the Council’s Document Management System (TRIM) by the Records Department.

 

20.    The Tender Evaluation Committee met to review and accept the Tender Evaluation Plan; understand the evaluation process including methodology and, sign the Conflicts of Interest Declarations having made aware of the identities of the Tenderers.

 

21.    The Tender Evaluation Committee then proceeded to assess and evaluate the tenders against the evaluation criteria stated in the Request for Tender and in accordance with the Tender Evaluation Plan.

 

22.    That under Section 178 (1) (a) of the Local Government (General) Regulation 2005, Council accept the tender that is recommended for T19/017 Construction of Penshurst Park Sporting Hub – Stage 2 as outlined in the confidential attachment

 

Financial Implications

23.    Within budget allocation.

 

Risk Implications

24.    Operational risk/s identified and management process applied.

 

Community Engagement

 

25.    Community engagement was conducted as part of the Plan of Management and Master Plan process for Penshurst Park and during the statutory approval process.

 

 

File Reference

D19/279720

T19/017

 

 

ATTACHMENTS

Attachment 1

Confidential Attachment A - T19/017 Construction of Penshurst Park Sporting Hub Stage 2 - published in separate document (Confidential)

Attachment 2

Confidential Attachment B - T19-017 - Penshurst Park Stage 2 Construction - Tender Assessment Summary -  Final - published in separate document (Confidential)

 


Georges River Council – Assets and Infrastructure Committee Meeting -  Monday, 9 December 2019                     Page 27

Item:                   ASS042-19        Statutory Processes and Indicative Timeline for the Development of a New Regional Aquatic Facility in Georges River 

Author:              Manager, Project Delivery

Directorate:      Assets and Infrastructure

Matter Type:     Committee Reports

 

 

 

Recommendation:

(a)     That Council acknowledges its statutory obligations pursuant to Section 8A and 8B of the NSW Local Government Act 1993 on the management of lands and other assets and the principles of sound financial management as detailed in the report.

 

(b)     That Council acknowledges its statutory obligations under the Capital Expenditure Guidelines issued by the NSW Department of Local Government pursuant to section 23A of the Local Government Act 1993, that require councils to consider the full range of project alternatives, options and site locations as part of the preparation of a preliminary business plan for capital projects in excess of $10 million. 

 

(c)     That Council note that it does not currently meet the loan approval criteria of NSW Treasury (TCORP) (financial operating performance ratio) to qualify for a loan.

 

 

Executive Summary

1.      This report presents the expected timeline for site investigations, feasibility studies; business case preparation and decision making that must take place in accordance with the NSW Office of Local Government Capital Expenditure Guidelines (2010) and Council’s legal obligations pursuant to section 8A and section 8B of the Local Government Act 1993.

2.      This information is provided following the resolution of Council on 25 November 2019 that the General Manager provide a comprehensive report detailing the required processes and timeframes to complete the preparation of all documentation, concept plans, development applications, tenders, community consultation and the business case associated with a regional aquatic facility project.

3.      This report also presents a short summary of recent similar regional aquatic facility development timelines and costs for comparison.

 

Background

4.      The report to Council on 26 August 2019 on the Structural Assessment of the Kogarah War Memorial Pool presented a detailed summary of the engineering assessments undertaken on the pool and the NSW Environment Protection Authority and NSW Health directives that lead to Council’s decision to close the pool.

Capital Expenditure Guidelines

5.      The report also outlined the statutory processes that Council was obligated to follow in accordance with the Guidelines issued by the NSW Department of Local Government in 2010 pursuant to section 23A of the Local Government Act 1993 (the Act) relating to capital expenditure on projects.

6.      The overriding principles of the Guidelines are accountability and prudent financial management of council resources.

7.      In summary, the Guidelines state that before a council undertakes a capital expenditure project in excess of $10 million, a preliminary business case must be prepared to determine whether the proposal is necessary, consistent with Council’s community strategic plan, delivery program and operational plans, offers value for money and that the council has the capacity to deliver and maintain their current and future community services in the long term.

8.      A council must demonstrate that its decision to carry out the capital expenditure is based on sound strategic and financial planning, supported by valid data and research and that it reflects the views, priorities and objectives of the broader community.

9.      Councils are required to prepare a preliminary business case for each Council project to which these Guidelines apply. It is also appropriate to prepare a preliminary business case for any project assessed or considered as high risk.

10.    The preliminary business case describes all of the following relevant to the alternative proposals:

·        The high level objectives for the project

·        the risks

·        sustainability issues

·        costs

·        benefits

·        as well as identify any assumptions on which the proposal(s) are based.

11.    Cost estimates should be reasonably reliable but not to the level of accuracy as required in the capital expenditure review. The more accurate the costing is, the more useful it will be for the decision making process.

12.    It is expected that the cost estimate in the preliminary business case be within 15% of the project’s final cost. The ongoing costs relating to the capital works project (i.e., lifecycle costs), should also be identified.

13.    The amount of detail in the preliminary business case should reflect the proposed project’s scale, cost and risk.

14.    The governance model and internal controls, which will be utilised to manage project risks and assist the successful completion of the project, should also be identified. For example, preliminary business cases should include information relating to the project’s Steering Committee, Project Team, monitoring and review systems and if necessary, Probity Advisor and internal audit program.

15.    The preliminary business case should be supported by evidence and evaluate the service needs, options and implementation of the proposal.

16.    The evidence must be based on quantitative and qualitative data, use established methodologies that assess costs and benefits and link resources to services and results via evidence based results logic. It is important that any assumptions on which supporting data is based are clearly identified.

17.    Once a council is satisfied that sufficient information and evidence has been provided in the preliminary business case and has resolved to continue with the project, a Capital Expenditure Review should be prepared.

NSW Local Government Act 1993

18.    Council also needs to to ensure that it complies with section 8B of the Act - Principles of sound financial management and in particular section 8B(d)(ii):

 

(a)     Council spending should be responsible and sustainable, aligning general revenue and expenses.

(b)     Councils should invest in responsible and sustainable infrastructure for the benefit of the local community.

(c)     Councils should have effective financial and asset management, including sound policies and processes for the following:

(i)      performance management and reporting,

(ii)     asset maintenance and enhancement,

(iii)    funding decisions,

(iv)    risk management practices.

(d)     Councils should have regard to achieving intergenerational equity, including ensuring the following:

(i) policy decisions are made after considering their financial effects on future generations,

(ii) the current generation funds the cost of its services.        

19.    The August 2019 report to Council also outlined the site investigations, studies and next steps that needed to be taken, in order for Council to gather the necessary information to make a justifiable decision in accordance with the NSW Government Capital Expenditure Guidelines on the ultimate location for a third regional aquatic facility within the Georges River local government area.

 

20.    The report noted that if the Regional Aquatic Facility Site Suitability and Feasibility Study (from hereon in referred to as the Regional Aquatic Facility Study) determined that a new aquatic leisure centre with Olympic sized swimming pool, children’s pool, water play and splash pad area as well as other modern community facilities such as a gym and crèche and wellness centre was needed in the area, that the expected cost for this kind of facility would be between $40 to $50 million. 

 

21.    Accordingly, the report advised that to comply with the statutory obligations of the Department of Local Government Capital Expenditure Guidelines, an evidence based business case would be required before any decision could be made on the future of a regional aquatic facility. 

 

Capital Expenditure Process

22.    Table 1 below outlines the steps that need to be taken in order to comply with the statutory process and enable Council to make an informed decision on the construction (or otherwise) of a new aquatic facility.

 

 

Table 1.  Background, Statutory Processes and Timeline for Procurement of a New Regional Aquatic Facility and Compliance with NSW Government Guidelines

 

Project Stage/Action

Report/Study/Action

Timeframe for Completion

 

1.

Kogarah Council commences annual monitoring of ground subsidence at Kogarah War Memorial Pool

Not reported to Council

1989

2.

Kogarah Council commences monitoring of water usage at Kogarah War Memorial Pool

Not reported to Council

2011

3.

Kogarah Council commissions Pool Structure and Equipment Condition Assessment Report for Kogarah War Memorial Pool

Not reported to Council

2011

4.

Georges River Council commissions Building Asset Condition Assessment reports on all Aquatic Facilities (Cardno Engineering) in 2016

Report to Council

February 2017

5.

Aquatic Facilities Strategy to be developed (incorporated into the Open Space, Recreation and Community Facilities Strategy)

Resolution of Council

February 2017

6.

Precinct Masterplan and Plan of Management for Carss Park Sport and Recreation Precinct comprising Todd Park to be prepared. (Not funded in 2018/19 budget due to other priorities)

Resolution of Council

November 2017

7.

Regional Aquatic Feasibility and Site Suitability Study to be commenced upon completion of Open Space, Recreation and Community Facilities Strategy

Resolution of Council

May 2018

8.

Precinct Master Plan and Plan of Management for Carss Park Sport and Recreation Precinct comprising Todd Park commences.

Resolution of Council (2019/20 Budget)

July 2019

9.

Kogarah War Memorial Pool closed due to ongoing pollution of Georges River

NSW EPA Direction to cease polluting waters

July 2019

10.

Structural, geotechnical and contamination reports commissioned for Kogarah War Memorial Pool site

Independent reports

July 2019

11.

Structural engineering report on the Kogarah War Memorial Pool (Geoff Ninnes Fong & Partners Pty Ltd)

Reported to Council

August 2019

12.

Community Needs Analysis undertaken (Open Space, Recreation and Community Facilities Strategy 2019-2036)

Resolution of Council (adoption of the Open Space, Recreation and Community Facilities Strategy 2019-2036)

August 2019

13.

Draft Regional Aquatic Facility Site  Suitability and Feasibility Study report to Council for approval to exhibit

Report to Council

December 2019

14.

Public exhibition and community engagement on the draft Regional Aquatic Feasibility Study commences

Draft Study

 

February – March 2020

15.

CRITICAL BUSINESS DECISION

Consideration of Special Rates Variation and minimum rate harmonisation and application to IPART for approval

 

 

Council Report

 

February 2020

16.

Project Control Group established (senior officers group)

 

February 2020

17.

Draft Carss Bush Reserve and Todd Park Plan of Management and Master Plan report to Council for approval to exhibit

Report to Council

February 2020 (estimate)

18.

Draft Netstrata Jubilee Stadium Master Plan report to Council for approval to exhibit

Report to Council

February 2020 (estimate)

19.

Draft s7.11 and s7.12 Developer Contribution Plans report to Council for approval to exhibit

Report to Council

March 2020

20.

Final Regional Aquatic Feasibility Study report to Council for adoption

Report to Council

April/May 2020 (estimate)

21.

CRITICAL BUSINESS DECISION

Decision on whether to proceed to prepare a Preliminary Business Case

 

 

Report to Council (to proceed and allocate funding)

 

April/May 2020 (estimate)

22.

Appointment of Project Steering Committee as specified in Capital Expenditure Guidelines 2010 and allocation of $1.5 million project planning budget

Report to Council

April/May 2020

23.

Officers commence work on potential sources of capital funding:

1.   Loan and grant(s)

2.   Grant(s) and Council funding

3.   100% Council funding

4.   Developer contributions

 

 

May 2020

24.

Final Netstrata Jubilee Stadium Master Plan report to Council for adoption

Report to Council

May 2020

25.

Draft s.11/ s7.12 Developer Contribution Plans report to Council for adoption

Report to Council

June 2020

26.

Adoption of 2020/21 Budget

Report to Council

June 2020

27.

CRITICAL BUSINESS DECISION

Preliminary Business Plan report to Council and decision to proceed with the project

 

 

Report to Council

 

July 2020 (estimate)

28.

Preparation of tender documentation for project experts and consultants:

·    Architectural Designs

·    Quantity Surveyor

·    Business Planning and Cost Management/probity advisor

Tender documents

July-August 2020

29.

Draft Plan of Management and Master Plan for Carss Bush Reserve and Todd Park report to Council for adoption

Report to Council

August 2020

30.

Tenders issued and evaluated

Project experts and consultants

August - October 2020

31.

Tenders reported to Council to engage project contractors and experts

Report to Council

November 2020

32.

Concept design development commences

Consultants

November 2020

33.

Community consultation on concept design options

Public exhibition

April – May 2021

34.

CRITICAL BUSINESS DECISION

Report to Council for endorsement of final concept design and updated cost plan and Final Business Case. Council decision to proceed and obtain additional funding required as estimated in the business case to construct a regional aquatic facility

 

Report to Council

June – July 2021

35.

Preparation of detailed designs 60% and updated costing

12 months for design preparation by project experts/consultants

July 2021

37.

Preparation of detailed designs 75% and updated costing

 

 

38.

Preparation of detailed designs 90% and updated costing

 

 

39.

Preparation of detailed designs 100% and updated costing

 

 

40.

Development Application (DA) documentation preparation

Project experts and consultants

July 2022

41.

DA lodged for regional aquatic facility/community consultation

 

August – September 2022

42.

DA assessed by independent planning consultant and reported to the Southern Sydney District Planning Panel

Independent planning consultant

September – November 2022 (estimate)

43.

CRITICAL BUSINESS DECISION

DA for aquatic facility receives development approval from Southern Sydney District Planning Panel

 

 

November 2022 (estimate)

44.

Final Business Case and Capital Expenditure Review submitted to NSW Office of Local Government (and NSW Treasury (TCORP) and Infrastructure NSW if loan or grant funding is proposed to be obtained)

Review by NSW Office of Local Government, NSW Treasury (TCORP) and Infrastructure NSW

January 2023

45.

CRITICAL BUSINESS DECISION

Loan or grant funding approved by TCORP and/or Infrastructure NSW

 

 

 

March 2023

46.

Tenders issued for construction of the regional aquatic facility

 

March – April 2023 (8 weeks)

47.

Tenders close and evaluated

 

April – May 2023

48.

Report to Council to appoint recommended contractor

Report to Council

June 2023

49.

Construction of regional aquatic facility commences

 

July 2023

50.

Construction of regional aquatic facility completed

 

July 2025

Immediate Next Steps

23.    Community consultation on the Regional Aquatic Facility Site Suitability and Feasibility Study is expected to occur in early 2020 subject to endorsement by Council in December 2019.

 

Potential Funding Sources

24.    In order to fund the proposed $50 million project, Council could explore the following funding options in isolation or in combination. All options have specific restrictions or limits in funding a $50 million project.

·        Grant funding

·        Loan

·        Special Rate or Special Rate Variation

·        Internally or Externally Restricted Reserves

 

Grant Funding

25.    If grant funding is sought, funding is normally required to be matched on a 50/50 basis by Council. Should the funding be provided by NSW Treasury, the project may be subject to an Infrastructure NSW Investor Assurance gateway review and potentially a Design for Excellence Process.

26.    Future rounds of The Greater Sydney Sports Fund are likely to be announced early in 2020. A maximum of $5 million dollars can be applied for grant funding.  If funding is to be sought under this program an expression of interest (EOI) must first be lodged.

27.    If an EOI is successful, the applicant will be requested to formally submit a detailed application (project plan and budget) or a business case, based on the known scope of the project. 

28.    At the business case stage, evidence of an approved or lodged Development Application is required to demonstrate the readiness of the project.

 

TCORP Loan 

29.    The NSW Government provide loans to Local Government via TCORP. The loans must be for a minimum of 3 years and maximum of 20 years, solely for infrastructure and can be fixed amortising loan with annual, semi or quarter instalments.

30.    Based on cash rates in November 2019, TCORP advised the following indicative amortising loan options:

Term (years)

Indicative Rate

Amount

Annual Repayment

Total Interest

Total Principal and Interest

20

2.46%

$30,000,000

$1,908,000

$8,160,000

$38,160,000

20

2.46%

$50,000,000

$3,180,000

$13,600,000

$63,600,000

 

31.    In order for a council to be approved for a TCORP loan, it must meet the following criteria:

·        It cannot have greater than 30% of its investment portfolio in BBB or unrated investments; and

·        It must meet the Office of Local Government Financial Ratios.

32.    In terms of the first point, Council has less than 30% of its investment in BBB or unrated investments. 

33.    The Office of Local Government Financial Ratios are outlined below with Council’s performance for the 2018/19 financial year. As highlighted in the table, based on Council’s current service portfolio it does not meet the operating performance ratio. This is an on-going issue that was highlighted in Council’s Long Term Financial Plan and is the indicator supporting the current need for Council to seek a Special Rate Variation.

 

 

 

 

 

 

 

Table 2.  Office of Local Government Financial Ratios

 

Indicator 2019

Prior Period 2018

Benchmark

Within Benchmark Yes/No

Operating performance ratio

(2.90)%

(2.57)%

>0.00%

No

Own source operating revenue ratio

72.46%

78.49%

>60.00%

Yes

Unrestricted current ratio

3.65x

3.86x

>1.50x

Yes

Debt service cover ratio

27.32x

25.82x

>2.00x

Yes

Rates, annual charges, interest and extra charges outstanding percentage

3.11%

3.00%

<5.00%

Yes

Cash expense cover ratio

10.66 mths

10.88 mths

>3.00 mths

Yes

34.    These ratios do not illustrate Council’s position if it were to seek a $30 million or $50 million loan.

Special Rate or Special Rate Variation (SRV)

35.    A special rate is in addition to the normal ordinary rate charged on a ratepayer’s annual notice. Special rates are a means to clearly outline a specific rate for a specific project.

 

Table 3.  Special Rate Variation

 

Total Principal and Interest

Annual Impact on Ratepayers from a Special Rate

20 year loan of $30 million*

$38,160,000

$36 additional rates

20 year loan of $50 million*

$63,600,000

$60 additional rates

*These scenarios are based on the average annual amount of 53,000 residential rateable properties.

36.    The scenarios outlined above would be in addition to the current proposed SRV, as the proposed SRV due to be considered by Council in February 2020, is based on 10.6% increase ($7.5 million) and Council identifying $12 million in savings or additional revenue to correct the operating performance ratio and other financial challenges highlighted in the Long Term Financial Plan.

Internally or Externally Restricted Reserves

37.    As at 30 June 2019, Council has a total of $165 million in restricted reserves. This is split with internal restricted reserves having a balance of $61 million and the externally restricted reserves having a balance of $104 million. As the name reflects, these reserves are restricted by external legislation or internal policies to fund specific projects.

38.    In all scenarios the generation of cash and the correction of Council’s operating performance ratio are essential, in terms of either the repayment of a loan, grant funding or Council reserves.

 

 

Case Studies from Other Local Government Areas

39.    The table below provides a comparison of similar aquatic leisure centre projects and funding sources in other Local Government areas.

Table 4.  Comparison of Recent Aquatic Facility Developments, Project Value and Funding Source

Year

Council

Facility

Project Value

Local Govt Funding

Federal Govt Funding

State  Govt Funding

2017

Hume City

Splash Aqua Park and Leisure Centre

$45.0 m

$32.8m

$9.2m

$3.0m

2018

Parramatta Pool

Parramatta Pool redevelopment

$77.0m

$38.5m

$0

$38.5m

2018#

Eurobodalla

Batemans Bay Aquatic Centre

$67.0m

$15.0m

$25.0m

$26.m

2019#

Hills Shire

Waves Aquatic Leisure Centre

$62.0m

$0

$0

$0

(application for $5m grant lodged GGSF*)

2019#

Camden

Oran Park Leisure Centre

$45m

$0

$0

$0

(application for $5m grant lodged GGSF*)

Source: Otium Planning Group Pty Ltd.        # Still in design stage     *Greater Sydney Sports Fund

 

Financial Implications

40.    A budget of $1,500,000 will be required to be allocated in the 2020/21 financial year for the establishment of a Project Control Group and the preparation of the Preliminary Business Plan, and if a decision is made to proceed, the remaining funding will be put towards the preparation of the necessary Business Plan and Capital Expenditure Review for the project.

41.    In all funding scenarios the generation of cash and the correction of Council’s operating performance ratio are essential, in terms of either the repayment of a loan, grant funding or internal borrowing from any Council reserves where such borrowing is permitted to occur.

 

 

Risk Implications

42.    Financial sustainability strategic risk has been identified.

43.    Based on Council’s adopted 10 year Long Term Financial Plan, if any of the critical    decision steps outlined above are made without consideration of the existing financial challenges faced by Council, Council runs the risk of further declining its immediate financial outlook and contravening sections 8A and 8B of the Act.

44.    This is due to the fact that, without capital grants and contributions, Council is in an operating deficit and this is forecast to continue and worsen due to the impending loss of the former Hurstville Council SRV. 

45.    If Council was to incorporate the repayment of a loan for the new aquatic facility (estimated to be between $2 - $3 million per year) and the likely annual operating loss (estimated to be in excess of $1 million for the first 3-5 years) into our current forecast it would worsen the existing financial position of Council.

46.    The financial sustainability strategic risk identified can be mitigated by ensuring Council is aware of its legislative responsibilities for sound financial management and by clearly highlighting the critical decision stages and their impact on Council’s financial sustainability at each step of the process.

47.    The recommendation for Council to establish a Project Steering Group will assist in ensuring adherence to legislative obligations, project management principles, timeframes and communication to relevant stakeholders at the critical decision making stages of any project.

 

 

Community Engagement

48. Community engagement will be conducted as outlined in this report.

 

File Reference

D19/279511

 

 

 

  


Georges River Council – Assets and Infrastructure Committee Meeting -  Monday, 9 December 2019                     Page 30

Item:                   ASS043-19        Netstrata Jubilee Stadium Cleaning and Waste Management Services T19/019 

Author:              Manager Premium Facilities and Executive Services Officer

Directorate:      Assets and Infrastructure

Matter Type:     Committee Reports

 

 

 

Recommendation:

(a)     That under Section 178 (1) (a) of the Local Government (General ) Regulation 2005, Council accept the tender that is recommended for T19/019 Netstrata Jubilee Stadium Cleaning and Waste Management Services as outlined in the confidential attachment.

(b)     That the General Manager be authorised to sign the Contract with the preferred tenderer on behalf of Council.

(c)     That Council inform the unsuccessful Tenderers of the resolution.

 

 

Executive Summary

1.      The purpose of this report is to advise Council of the results of the tender process       completed in accordance with Part 3, Division 1, Section 55 and Section 377 of the Local        Government Act 1993, for the T19/019 Netstrata Jubilee Stadium Cleaning and Waste Management Services tender and to seek a resolution from Council to enter into a     Contract with the successful Tenderer to provide the Cleaning and Waste Management     Services at Netstrata Jubilee Stadium.

2.      This report explains the background for Council to decide if it wishes to enter into a    Contract with the entity recommended as the successful Tenderer. The report details the          tender process supporting the recommendation for Council’s consideration, with the          confidential matters being contained in the confidential attachments.

 

Background

3.      The Director Assets and Infrastructure appointed a Tender Evaluation Committee for the    Tender prior to advertising and all tender documentation was reviewed by the         Procurement Team and the Manager, Premium Facilities prior to issuing.

4.      Tender documentation included:

a.      RFT T19/019 – Services Agreement;

b.      Conditions of Tendering;

c.       Returnable Schedules; and

d.      Scope of Services.

 

5.      The Tender Evaluation Committee determined the Tender Evaluation Criteria prior to           advertising of the tender. The essential criteria and mandatory criteria was determined as   follows:

 

Essential Criteria

a.      Best Value for Money – Tenderer’s Schedule of Rates

b.      Financial stability and capability to deliver the cleaning and waste management

                    services

c.      Capability, experience and depth of experienced and qualified key personnel to deliver the required range of services including experience in providing cleaning and waste management services at major events and similar sporting stadiums and/or entertainment venues

d.      Waste management operation, recycling and other measures to reduce

                    environmental impact

 

Mandatory Criteria:

Insurances:

a.      Public Liability min. $20M

b.      Professional Indemnity Insurance – minimum of $10 million

c.       Workers Compensation – minimum requirements by law

 

Other:

d.      WH&S Information

e.      Environmental Management Information

f.       Quality Management Information

g.      Presentation of Tender

h.      Conformity with tender submission requirements

 

6.      T19/019 Netstrata Jubilee Stadium Cleaning and Waste Management Tender was      advertised in the Sydney Morning Herald on 10, 11 and 14 September 2019 and posted on     Tenderlink on 10 September 2019.

7.      The tender closed on Tuesday 15 October 2019 at 11.00am in the presence of the Tender Opening Committee. Eleven (11) tenders were received via Tenderlink from the following          companies:

(a)     CE Eventcorp Pty Ltd

(b)     Facilities First Australia Pty Ltd

(c)     IK Facility Services Pty Ltd

(d)     Majestic Commercial Pty Ltd

(e)     MSR Services Australia

(f)      Principal Asset Services Pty Ltd

(g)     Progress Facility Management Pty Ltd

(h)     Quayclean

(i)      Service Master Solutions

(j)      SKG Cleaning Services Pty Ltd

(k)     Solo Services Group Australia Pty Ltd

 

8.      The Tender Evaluation Committee individually assessed the submissions and met on 24   and 31 October 2019 and 6 November 2019, to review the tenders and to seek       clarifications. Details of the Tender Evaluation Committee and these meetings are        provided in the confidential attachment.

9.      The Tender Evaluation Committee completed the tender assessment and evaluation           process and identified a tender that is most advantageous to Council, having regard for all      the criteria.

10.    The Tender Evaluation Committee recommends that under Section 178 (1) (a) of the Local           Government (General) Regulation 2005, Council accepts the tender identified as the preferred Contractor as outlined in the confidential report.

Financial Implications

11.    No budget impact for this report.

Risk Implications

12.    No risks identified.

Community Engagement

13.    Community engagement is not required.

 

File Reference

D19/291380

 

 

 

ATTACHMENTS

Attachment 1

Assessment Worksheet - T19-019  Netstrata Jubilee Stadium Cleaning and Waste Management Services - Confidential Attachment (Confidential)

Attachment 2

T19-019 Confidential Report - Cleaning and Waste Management - Netstrata Jubilee Stadium - 2 (Confidential)