Proof_CouncilAgenda_Coverpage_Template_Governance

 

 

 

 

 

 

BRIEFING PAPERS

FOR ELECTED MEMBERS’

BRIEFING SESSION

 

Draft Only

 

 

 

 

 

to be held at

the Council Chambers, Civic Centre, 23 Dundebar Road, Wanneroo

on 14 August, 2018 commencing at 6.00pm


 

 

 

Briefing Papers for Tuesday 14 August, 2018

 

 

 

 

CONTENTS

 

Item  5_____ Late Reports_ 1

5.1                         Service Delivery Review - Waste Services  1

5.2                         Wanneroo Aquamotion Indoor Pools Retiling Project  55

 


Late Items Agenda

Item  5      Late Reports

5.1    Service Delivery Review - Waste Services

File Ref:                                              34461 – 18/290968

Responsible Officer:                           Director Assets

Disclosure of Interest:                         Nil

Attachments:                                       3         

 

Issue

To consider the City’s Service Delivery Review of Waste Services.

Background

The City of Wanneroo provides a comprehensive waste management service comprising:

 

·      the collection of domestic and co-mingled recyclable waste;

·      the collection of bulk junk/greens waste;

·      the collection of illegal dumping, waste at community facilities, parks and reserves, City’s premises and bus stops; and

·      the provision of a green waste drop-off facility for residents of both the Cities of Wanneroo and Joondalup, at Motivation Drive, Wangara.

 

The City has recently undertaken a full review of all waste management services to identify any opportunities that have the potential to provide best value and service to the City’s ratepayers, are able to cope with projected population growth and can provide the most sustainable outcomes when dealing with the City’s waste materials; all in line with Western Australian State Waste Strategy and the City’s Strategic Waste Management Plan.

Detail

In line with the aims, principles and criteria defined in the Australian Centre of Excellence for Local Government’s (ACELG) manual on service delivery reviews, Administration has undertaken a Service Delivery Review of all waste management operations/services delivered to the City’s residents.

 

The aims and guiding principles are:

 

Aims:

·        Understanding service levels;

·        New ways of doing things – alternative ways of delivery – innovation;

·        Better align community priorities, service levels and costs;

·        Build capacity for the future;

·        Understanding what the customer values;

·        Strategic alignment; and

·        Financial sustainability

 

Guiding Principles:

·        Equitable service provision across the City;

·        Strong community and stakeholder engagement – building knowledge and transparency;

·        Focusing not just on economy and efficiency but also effective provision of services; and

·        Local employment

 

At the start of the Service Delivery Review of Waste Services, it became evident that the number, level of interconnectedness and complexity of options available to the City would require a two stage review process to ensure optimum results;

·     Stage One would involve a review of the potential waste management options that are available to the City within the Western Australian market, and

 

·     Stage Two would attempt to identify all available service delivery options and overlay these over the waste management solutions identified during Stage One, and advise on the best potential options(s) for the City.

 

Both stages involved the development and assessment of waste management options against a multi assessment criterion, extensive financial assessments, consideration of the community survey results and consultation with several stakeholders and Elected Members.

 

On 6 March 2018, Council considered Item No AS04-03/18: Better Bins Program Application at its Ordinary Council Meeting, and resolved in part to:

 

‘4.       NOTES that the Director Assets will present to Council the outcome of the Waste Service Review by mid-2018 which will provide strategic direction on the preferred service model for waste and which will have a direct bearing on this application.’

 

Refer Attachment 1 for the Service Delivery Review Report, written in line with the aforementioned ACELG manual, which discusses the Service Delivery Review process, findings and outcomes, and provides a strategic direction on the preferred waste management; service delivery model for the City and a direction on the Better Bins Program.

Consultation

Numerous internal stakeholders have been involved in the identification and development of the options assessed as part of the Service Delivery Review, as have external parties from other local governments and waste industry companies in Western Australia, and further afield.

 

Internal consultation and auditing has also occurred on the financial models created to allow a comparison of costs of all identified waste management and service delivery options.

Comment

Waste Services’ Service Delivery Review has been complex in nature due to a number of points; such as

 

·        the need for community acceptance;

·        the need to identify efficient and cost effective solutions;

·        the need to meet the requirements of the waste hierarchy, the availability of market options and associated information;

 

·        the City’s obligations as a member of Mindarie Regional Council (MRC); and

·        other associated considerations.

The approach to undertake this review in two stages was considered appropriate, and one which ensured that the City identified the best possible, and available, waste management options prior to undertaking a detailed analysis of the available service delivery options.

 

As discussed previously, Stage One of the process identified all viable waste management options for the City’s waste, in line with the City’s Strategic Waste Management Plan, and following an extensive investigation in to what could be available from the resource recovery industry within WA.

 

Stage Two of the process has sought to integrate the best possible waste management and service delivery options available within the boundaries of the City, now and into the future, and subject to decision by Council, offers the opportunity for the City to implement a Transition Plan, that can provide State-leading services to residents over a period of time, refer Attachment 2. The responses received for the community survey, refer Attachment 3, undertaken during Stage Two, were key in informing the development of the options proposed in the Transition Plan.

 

The Transition Plan offers the opportunity for residents to become more responsible for their own wastes as cost effectively, sustainably and close to home as possible. By doing so the City aims to provide the best value to its community and take advantage of the City’s natural opportunities, available land, growth potential and lack of current infrastructure, community organisations, etc. The outcomes from the Review process highlight that implementing the Transition Plan will result in a considerable improvement in recycling performance for the City, allowing it to exceed the State Government’s resource recovery target, ie 65% by 2020.

 

It is important to note that employing the most effective resource recovery methodologies generally has the effect of reducing disposal costs, as the intrinsic value of these resources is maintained by recycling them and offsets any disposal costs.

 

The options proposed in the draft Transition Plan need further development and consideration of several variables including, but not limited to, the impact on the community, change management, resources, approvals, costs and sources of funding, etc. It is proposed that the details of each of these options, as developed, will be presented to Council for consideration and decision.

 

The Chief Executive Officer of the Mindarie Regional Council (MRC) has commenced discussions with the member councils’ Chief Executive Officers on MRC’s strategic direction.  As the City’s waste service delivery outcomes may impact these discussions, it is therefore proposed that the Chief Executive Officer is authorised to share the Review outcomes and commence discussions with MRC.

 

Better Bins Program

In the report to Council on 6 March 2018, AS04-03/18: Better Bins Program Application, the following list of implications was presented requiring consideration prior to any decision being made on the implementation of the Better Bins Program by the City:

·        Capital investment to procure bins; and the roll-out resources and costs;

·        Ongoing operational costs;

·        Compliance with the Better Bins program’s strict funding conditions and KPIs, as non-compliance will result in the City not receiving the funding;

·        Impact on the MRC gate fee and the operation of the RRF due to the potentially reduced concentration of organic waste delivered to MRC’s RRF or the overall volume to the Landfill site;

·        City’s contractual obligations under the contract with RRF;

·        Other MRC member councils’ intention to divert waste from MRC’s Landfill and/or the RRF, and its impact on the City;

·        The cost of service and its pay back through the cost saving from the diversion of waste from the MRC’s landfill and/or RRF;

·        Number of dwellings which could be considered for the provision of three bins, including potential opt –in/opt-out option; and

·        The householder participation rates as the amount of waste collected through the third bin will be dependent on the appropriate waste being placed in the respective bins.

All of the above individual variables have been included in the overall Service Delivery Review and have been assessed alongside many others which became apparent during the process, and have helped formulate the development of the draft Transition Plan. In effect, Council’s endorsement of the draft Transition Plan also provides, in principal, support for the roll out of a three bin kerbside collection system throughout the City; the format of which will be discussed in a subsequent Business Case to be presented to Council.

 

Accordingly, and subject to Council’s endorsement of the proposed Transition Plan, and the roll-out of a Three Bin System for the separate collection of organic wastes, it is also proposed that the City makes an application for funding through the Waste Authority’s Better Bins Funding Program, as resolved on 6 March 2018. This has the potential to provide the City with over $2M of funding through landfill levy funds from the State Government’s WARR Account.

 

The application deadline for Better Bins funding is 31 December 2018. When an application is formally received, a Funding Agreement is drawn up by the Waste Authority and forwarded to the Minister for the Environment for approval. It is likely to be a 8 – 12 week period from lodging an application to receiving the Funding Agreement. The payment of the first third can be expected around one month later; the second milestone payment is expected up to six months after all bins have been delivered to households and the final payment is due 12 months later; once proof of compliance with the agreed KPIs is provided to the Waste Authority.

 

Subject to Council’s further consideration and decision of the Better Bins Program, the City expects to roll-out a third bin to residents at some point during 2019/2020..

 

Yellow-Bin Recycling Materials

The draft Transition Plan does not propose any waste management changes for recyclable materials as the City currently has a contract in place with Cleanaway until 30 November 2019.

 

It is proposed that the City prepares itself to secure a provider of recycling services post November 2019, within the boundaries of the City of Wanneroo, as per the assumptions of the Service Delivery Review. To do so, it is therefore important that the City commence discussions with other local governments, including MRC, to ascertain whether there is interest in aggregating the tonnage of recyclable materials between interested parties, to maximise potential contractual outcomes.

 

To this end, it is proposed that the Chief Executive Officer commence discussions with the City’s previous recycling contract partners, the Cities of Joondalup and Swan, to determine their level of interest, as well as with the MRC, and report back to Council on the outcome of these discussions.

Statutory Compliance

The Waste Avoidance and Resource Recovery Act 2007 (WARR Act) confers on the Minister for the Environment the ability to require any local government to provide waste services to its community in line with the State Waste Strategy.

 

This review seeks to identify the best possible future waste management options for the City in line with the State Waste Strategy.

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

 “3     Environment (Natural)

3.3    Reduce, Reuse, Recycle, Waste

3.3.2  Foster a partnership with community and industry to reduce waste

Risk Management Considerations

Risk Title

Risk Rating

CO-021 Competitive Service Costing

High

Accountability

Action Planning Option

Director Community & Place

Manage

 

Risk Title

Risk Rating

CO-022 Environmental Management

High

Accountability

Action Planning Option

Director Planning & Sustainability

Manage

 

Risk Title

Risk Rating

ST-G09 Long Term Financial Planning

Moderate

Accountability

Action Planning Option

Director Corporate Strategy & Performance

Manage

 

The above risks relating to the issue contained within this report have been identified and considered within the City’s Strategic and Corporate risk registers. Action plans have been developed to manage these risks to support existing management systems.

Policy Implications

The City’s Waste Management Services Policy defines the level of waste management service to be delivered to the community.

Financial Implications

A financial model was developed by comparing Business-As-Usual operating costs with projected costs from the numerous options identified through the Service Delivery review process, and based on information sourced from proponents within the waste management industry and neighbouring local governments.

 

The model allows the City to compare the impact of the proposed waste management and service delivery options identified at current prices. The model does not take into account the City’s projected growth, as this would be identical for all options; nor does it attempt to forecast future prices in the waste management industry, as this is almost impossible given the dynamic nature of the waste management industry. The financial model does however seek to compare the City’s current budgeted costs with the forecasted costs of the options identified, should they be applied in the 2018/2019 financial year. In doing so, it has been identified that the City’s overall waste management costs, and therefore the waste charge to residents, has the potential to improve as the City moves towards its proposed final waste management and service delivery state.

 

All new capital requirements associated with the options developed are not currently included in the City’s long Term Financial Plan (LTFP). However savings expected within the options brought forward mean that operational costs in the longer term are covered within the LTFP. These will be further detailed as the options identified in the draft Transition Plan are developed and business cases presented to Council for consideration and decision.

 

For the Better Bins Program, the initial funding to procure new bins and roll out the program is estimated to be in the order of $10M, assuming full compliance with the Better Bins model. The City has the opportunity to gain up to $30 for each third bin provided per household, in the roll out of a three bin system throughout the community; this equates to around $2.1M in funding.

 

Subject to Council’s decision on the recommendations made in this report, the funding will be required in 2019/2020 and is currently not listed in LTFP. It is proposed to fund this requirement from Waste Reserve. However, the grant funding will not be received in 2019/2020 as it is subject to the successful roll-out of the program and meeting the KPIs, and will be received in the Waste Reserve. The net financial impact of this program is estimated to be $7.9M, which will be recovered through the savings in the ongoing operational costs, the exact quantum of which, inclusive of MRC cost impacts, will be determined in the business case for the roll out of the Better bins Program.

Voting Requirements

Simple Majority

 

Recommendation

That Council :-

1.       RECEIVES the “Waste Services Service Delivery Review 2018 – Report”;

2.       ENDORSES the implementation of the Draft “Waste Services Service Delivery Review 2018 – Transition Plan”;

3.       ENDORSES the City’s application for funding through the Better Bins Kerbside Collection Program;

4.       AUTHORISES the Chief Executive Officer to commence discussions with the Mindarie Regional Council relating to the impact of the City’s Waste Delivery Review outcomes on the Mindarie Regional Council’s strategic direction, and

5.       REQUESTS the Chief Executive Officer to commence discussions with other local governments on the possibility of aggregating Recycling tonnages for a waste management facility to process these materials within the City of Wanneroo.Attachments:

1.

Waste Service Review - Report

18/318118

 

2.

Waste Services Service Delivery Review 2018 - Transition Plan (Draft)

18/310401

 

3.

City of Wanneroo Waste Services Service Delivery Review Survey 2018

18/252709

 

 


CITY OF WANNEROO Late Items Agenda OF Elected Members' Briefing Session 14 August, 2018                      7

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CITY OF WANNEROO Late Items Agenda OF Elected Members' Briefing Session 14 August, 2018        55

5.2    Wanneroo Aquamotion Indoor Pools Retiling Project

File Ref:                                              33104 – 18/323919

Responsible Officer:                           Director Community and Place

Disclosure of Interest:                         Nil

Attachments:                                       2         

 

Issue

To consider delegation of authority to the Chief Executive Officer to determine and award Tender No. 18179 for pool re-tiling works for Wanneroo Aquamotion.

Background

Aquamotion is the City’s indoor aquatic facility which was constructed in 1990 and underwent re-development in 2007/08. Post re-development, the facilities provided at Aquamotion includes the following (Attachment 1):

 

·        Indoor heated 8 lane, 25m lap pool;

·        Indoor heated leisure pool;

·        Program (hydrotherapy) pool;

·        Spa and sauna;

·        Outdoor water playground and splash pad;

·        Outdoor deep water pool;

·        Gymnasium and Group Fitness room;

·        Crèche; and

·        Café.

 

In its current form, Aquamotion attracts approximately 300,000 visitations per annum and an average of 1,400 swim school enrolments per term. Aquamotion also caters for a number of key stakeholders include the Department of Education term based swimming lessons and the Aqua Attack Swimming Club.

 

Since late 2017 Aquamotion has experienced increasingly significant tile delamination on the pool basin of the main indoor lap pool, the indoor leisure pool, the spa, indoor program pool (hydrotherapy pool) and the outdoor deep water pool. The retiling of the program/hydrotherapy pool was completed in February 2018 and the retiling project for the outdoor pool has been included within the scope of works for the indoor pool retiling project.

 

In respect to the indoor pools, an allowance of $50,000 (PR-SP204) was made within the 2017/18 Capital Works budget to undertake the following works:

 

·        Investigate existing pool tile delamination in the main lap pool, leisure pool and spa;

·        Advise on cause of pool tile delamination and extent of the issue in respect to potential impact on pool basin and associated infrastructure;

·        Development of appropriate technical specification and scope of works to address the issues identified within each pool;

·        Assistance with tender assessment;

·        Implementation of a Quality Assurance system monitoring of the retiling works;

·        Inspection during progress of the retiling works and at completion of works;

·        Contract Administration.

The investigation, undertaken by specialist Aquatic Engineers, Geoff Ninnes Fong and Partners Ltd (GNFP), found that the cause of the tile delamination of the indoor pools was due to the same reasons as those identified in relation to the outdoor and program/hydrotherapy pools, which were:

 

·        Delamination was at the tile-adhesive barrier;

·        No back-buttering appeared to be present on delaminated tiles; and

·        No twisting of tiles appeared to have occurred to spread the adhesive evenly between tile and concrete shell, resulting in a less than minimum 80% coverage of adhesive.

 

Consequently the sum of $814,245 (PR-4150) was approved within the 2018/19 budget for the completion of these retiling works.

 

Administration has previously advised Elected Members of the tile delamination issue, proposed scope of works and timeframes via email correspondence on 7 March and 23 April 2018. This included advice regarding the need to shut down the pools in May 2018 for core sampling of the pool basins and an indicative project timeframe to undertake the retiling works of 16 weeks from July 2018.

Detail

Tender 18179 for pool re-tiling works for Wanneroo Aquamotion was advertised on 14 July 2018 and closed on 3 August 2018. 

 

Essential details of the proposed contract are as follows:

 

Item

Detail

Contract Form

Major Works – AS4000

Contract Type

Lump Sum

Contract Duration

160 days construction plus 12 months Defects Liability Period

Commencement Date

2 weeks after receipt of Letter of Award

Expiry Date

12 months after Practical Completion

Extension Permitted

No

Rise and Fall

Does not apply

 

Administration is currently undertaking the tender assessment, with a view of having this process completed as soon as possible. Tender assessment is likely to be completed by 23 August 2018 after completing the necessary financial risk assessments and reference checking on the preferred tenderer. The tender recommendation is therefore likely to be ready for Council’s consideration after the Ordinary Council Meeting to be held on 21 August 2018.

 

It is estimated that the overall cost of the project will be $1,454,110 inclusive of the tender sum, project management fees and contingencies. The project scope will include the following:

 

·        Retiling of the main lap pool, leisure pool, spa pool and outdoor pool;

·        Main pool and leisure pool break out and repair of designated areas of the concrete pool shell above the water line; and

·        Replacement of designated areas of existing pool concourse tiling.

 

Consultation

Consultation with customers and key stakeholders has been ongoing since the initial need for the re-tiling of the indoor pools and subsequent shutdown was identified. This has been undertaken via the City’s social media, web site and direct messaging within the centre. In addition to this, Administration has been in communication with the Department of Education (School Swimming Lessons), Aqua Attack Swimming Club and Aquamotion Swim School customers.

 

Consultation with key stakeholders will continue throughout the project planning and implementation phases, to enable a timely transition back into the centre post the completion of the re-tiling works.

Comment

As noted above, the preliminary project schedule was based on 16 week project duration, with an expected project commencement from July 2018. Based on the tender process, it is expected that the project will commence on 3 September 2018 and be completed in November 2018 based on contract finalisation in August 2018 (noting the tender process was delayed as a result of the core sampling of the pool shells and the subsequent scientific analysis).

 

The CEO has delegated authority to determine and award tenders up to a maximum of $1M. As the tenders under consideration for Tender 18179 are valued above $1M, Administration seeks Council’s delegation of authority to determine and award Tender 18179, subject to Council’s decisions in respect to the other recommendations made within this report. This will enable the project timeframes to be met, which will achieve the overall aim of project completion by December 2018, in preparation for the 2018/19 summer season. Delay of the tender award to the September meeting of Council will mean the project will not be completed within the required timeframe, impacting on the availability of the facility at the commencement of the coming summer season.

 

In previous discussions regarding the project, Elected Members had also requested that consideration be given to the provision of an access ramp for the main pool to facilitate improved access. Currently access is limited to the standard in-built steps or lift chair.

 

Administration sought advice from Geoff Ninnes Fong and Partners who have considered relevant standards in terms of disability access, building code and aquatic code requirements. The advice received was that the provision of the access ramp would result in the loss of one lane from the existing 8 lane lap pool (noting lane space is currently at capacity during peak times). Placing the ramp in the concourse would severely reduce the concourse access around the pool, making the area unsafe. In addition to this there is major pool reticulation under the concourse slabs which would require relocation and rebuilding if this option was pursed. Based on this advice, Administration has not pursed this option further, rather has purchased a set of “drop in” steps as an alternative means to offer improved access to customers. These will be put into use shortly, once relevant task procedures have been completed and staff training undertaken.

 

A preliminary concept for the access ramp has been included in (Attachment 2).

Statutory Compliance

Tenders were invited in accordance with the requirements of Section 3.57 of the Local Government Act 1995. The tendering procedures and evaluation complied with the requirements of Part 4 of the Local Government (Functions and General) Regulations 1996.

 

 

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2017 – 2027:

 “1     Society

1.1    Healthy and Active People

1.1.1  Create opportunities that encourage community wellbeing and active and healthy lifestyles

Risk Management Considerations

Risk Title

Risk Rating

Purchasing

Moderate

Accountability

Action Planning Option

Executive Management Team

Manage

 

Risk Title

Risk Rating

Contract Management

Moderate

Accountability

Action Planning Option

Executive Management Team

Manage

 

Risk Title

Risk Rating

Financial Management

Moderate

Accountability

Action Planning Option

Executive Management Team

Manage

 

The above risks relating to the issue contained within this report has been identified and considered within the City’s corporate risk register. Action plans have been developed to manage this risk to improve the existing management systems.

Policy Implications

Tenders were invited in accordance with the requirements of the City’s Purchasing Policy.

Financial Implications

Funding of $814,245 has been allocated to the project via PR- 4150 in the approved 2018/19 budget. As noted within this report, the likely total project cost as a result of the outcomes of the tender process is approximately $1,454,110. It is intended to address the budget shortfall for the project as a part of the Financial Management Report which is expected to be reported to Council in September 2018.

Voting Requirements

Absolute Majority

 

 

 

 

Recommendation

That Council:-

 

1.         NOTES that a project budget adjustment from $814,245 to an estimated $1,454,110 will be required and undertaken as a part of the Financial Management Report which is expected to be reported to Council in September 2018;

 

2.         That Council DELEGATES, BY ABSOLUTE MAJORITY to the Chief Executive Officer, the authority to DETERMINE and ACCEPT Tender No. 18179 for Pool Re-tiling Works for Wanneroo Aquamotion;

3.         NOTES that the implementation of the retiling works will require the outdoor pool and the indoor pool hall (inclusive of the indoor lap pool, main pool, spa and concourse areas) at Wanneroo Aquamotion to be closed for a period of approximately 16 weeks within an anticipated commencement date of 3 September 2018; and

4.         NOTES that Administration continues to consult with Wanneroo Aquamotion’s customers, the Department of Education and Aqua Attack Swimming Club in respect to the shutdown period.

 

 

Attachments:

1.

Floor Plan Layout

18/232720

 

2.

Main Pool Access Ramp - Preliminary Concept

18/325347

 

 

 


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