Description: Maranoa Logo Process

Late Items

ATTACHMENTS Paper

 

General Meeting

 

Wednesday 14 May 2014

 

Roma Administration Centre

 

NOTICE OF MEETING

 

Date: 3 June 2014

 

Mayor:                                                   Councillor R S Loughnan

 

Deputy Mayor:                                        Councillor W S Wason

Councillors:                                            Councillor J L Chambers

                                                              Councillor R J Denton

                                                              Councillor P J Flynn

                                                              Councillor W M Newman

                                                              Councillor C J O’Neil

                                                              Councillor M L Price

                                                              Councillor D J Schefe

 

Chief Executive Officer:                          Ms Julie Reitano

 

Senior Management:                               Mr Cameron Castles (Director Infrastructure Services)

                                                              Mr Rob Hayward (Director Development, Facilities & Environmental Services)

                                                              Ms Sharon Frank (Director Corporate, Community & Commercial Services)

 

Officers:                                                 Ms Jane Frith (Coordinator Corporate Communications)

 

Please find attached agenda for the General Meeting to be held at the Roma Administration Centre on May 14, 2014 at 9.00am.

Julie Reitano

Chief Executive Officer

 


Maranoa Regional Council

    

General Meeting -  14 May 2014

TABLE OF CONTENTS

Item       Subject

No

  

 

L.1         Third Quarter Budget Review 2013/14

              Attachment :           Summary Third Quarter Budget Review 2013-14v2............................ 2

 

L.2         Revenue Policy 2014/15

              Attachment :           Revised Revenue Policy 2014/15....................................................... 16

 

L.3      Register of General Cost-Recovery Fees and Commercial Charges 2014/15

              Attachment 1:        Legislative Provisions for Cost-recovery fees and Commercial charges 2014/15............................................................................................................. 22

              Attachment 2:        Travel Radius Map.............................................................................. 23

              Attachment 3:        Legislative Provisions Fees and Charges........................................... 24

              Attachment 4:        Consolidated Fees  Charges 2014-15 Final........................................ 25

              Attachment 5:        RSMS application - 2013 14............................................................... 49

 

L.5         Santos Pipeline Easement - GLNG CRWP Loop

              Attachment 1:        Deed of Easement.............................................................................. 50

              Attachment 2:        Map Showing Easement Area............................................................ 69

              Attachment 3:        Correspondence from Santos............................................................. 70

 

L.6      Submission to Federal Government's Inquiry into Australia's Trade and Investment Relationships with Countries of the Middle East

              Attachment :           MRC Submission to Federal Government Inquiry - Trade and Investment Relationships with Countries of the Middle East (15 May 2014)........ 71

 

L.8         Procurement Policy

              Attachment :           Draft Procurement Policy................................................................... 73   

 


Attachment 1

Summary Third Quarter Budget Review 2013-14v2

 















Attachment 1

Revised Revenue Policy 2014/15

 

Purpose

 

To comply with the requirements of Chapter 4, Part 1 and Part 2 of the Local Government Act 2009 and Section 169 (2) (c) and Section 193 of the Local Government Regulation 2012 by setting out:

 

(a)     the principles which Council will apply during the 2014/15 financial year for:

 

§  levying rates and charges;

§  granting concessions for rates and charges;

§  the recovery of unpaid rates and charges;

§  cost-recovery fees and methods;

 

(b)     the purpose of the concessions; and

 

(c)     the extent to which physical and social infrastructure costs for a new development are to be funded by charges for the development.

 

 

Scope

 

The Revenue Policy applies to revenue raised by rates, utility charges and fees and charges.

 

This policy applies to the making, levying, recovery and concessions for rates and utility charges and the setting of regulatory and commercial fees and charges for Council.

 

 

Definitions

 

Council

Maranoa Regional Council

Act

Local Government Act 2009

Pensioner

a person who is the holder of a pensioner concession card issued by the department of the Commonwealth responsible for administering the Social Security Act 1991 (Cwlth) or the Veterans’ Entitlement Act 1986 (Cwlth).

Regulation

Local Government Regulation 2012

 

All other definitions are as per the Local Government Act 2009 and the Local Government Regulation 2012.

 

1.         Details

 

1.1    Introduction

In accordance with the provisions of the Local Government Act 2009 and Local Government Regulation 2012, Council is required to prepare and adopt by resolution a Revenue Policy.

 

 

Council’s Revenue Policy is based on the following principles:

(a)     Fairness & Equity – by ensuring the consistent application of lawful rating and charging principles without bias;

(b)     Transparency - by communicating the Council’s charging processes and each ratepayer’s responsibility under the rating system;

 

(c)     Efficiency - by having a rating regime that is cost effective to administer;

(d)     Sustainability – to support the financial strategies for the delivery of infrastructure and services identified in Council’s short, medium and long term planning.

(e)     Flexibility within agreed parameters - by providing payment arrangements to assist ratepayers in meeting their rate commitments

Council will apply these principles when:

§  Making rates and charges;

§  Levying rates and charges;

§  Recovering rates and charges;

§  Granting and administering rates and charges concessions;

§  Charging for local government services and facilities;

§  Charging for business activities (subject to the National Competition Policy);

§  Funding Council infrastructure.

 

1.2    Making and Levying of Rates and Charges

Council’s application of the above principles in making and levying of Rates and Charges for the 2014/15 financial year are detailed as follows:

1.2.1 General Rates

General rates are set each year to assist Council in raising sufficient revenue to provide services to the community (exclusive of water, sewerage and cleansing/waste management utilities).

 

Council recognises that different categories of land use will generate different needs and requirements for Council services and facilities.  Council also recognises that it will incur a different level of resources expenditure to provide the necessary services and facilities and therefore has opted for a system of differential General Rating to meet its needs.

 

 

 

4.2.1.1        Differential General Rates

 

Council considers that the use of differential general rates allows the following factors to be taken into account in determining how the general rate revenue is to be raised which would not be possible if only one general rate were adopted:

 

(a)     the relative effects of various land uses on the requirements for, level of, and the cost of providing Council facilities and services;

(b)     movements and variations in the Unimproved Capital Value (UCV) both within categories and between categories of land use which affect the level of rates and issues such as ‘fairness’ and ‘equity’;

(c)     location and access to services; and

(d)     amount of the Unimproved Capital Value (UCV) and the rate payable.

 

To ensure that owners of land across all differential categories contribute equitably to the cost of common services, Council will apply a minimum rate to each differential rating category.

 

 

1.2.2 Utility Charges – Water, Sewerage and Waste Management Services

 

In general, Council will be guided by the principle of user pays in the making of charges that relate to the provision of water, sewerage and waste management services. 

 

Wherever possible, those receiving the benefits of a utility service will pay for the service received through the relevant utility charge.  Council will annually review its utility charges and other fees for service to ensure that revenues are meeting intended program goals and are keeping pace with the cost of providing the service.

 

1.2.3 Special and Separate Rates and Charges

 

Council may consider levying special and separate rates and charges when appropriate, to recover the costs associated with a particular service, project or facility that provides direct or additional benefit to the ratepayers or class of ratepayer.

 

 

4.3     Granting of Rebates and Concessions

4.3.1 Guiding Principles

In accordance with Chapter 4 Part 10 of the Local Government Regulation 2012 Council may grant a concession for rates and charges.  In exercising these concession powers Council will be guided by the principles of equity and transparency by:

§  Applying the same treatment to ratepayers with similar circumstances;

§  Making clear the requirements necessary to receive concessions;

 

Consideration may be given by Council to granting a class concession in the event that all or part of the local government area is declared a natural disaster area by the State Government.

 

4.3.2 The Purpose of Concessions

In accordance with Section 120 (1) of the Local Government Regulation 2012, Council may grant a concession in 2014/15 for the owner categories, or in some circumstances occupier categories, and properties used for the listed purposes. 

 

(a)     Pensioner Concession

          Eligible pensioners as defined in Schedule 8 of the Local Government Regulation 2012 may be granted a concession on general rates.

 

(b)     Non-Profit Community Organisation Concession

          In accordance with Section 120 (1) (b) of the Local Government Regulation 2012, a concession may be granted if Council is satisfied that the land is used for community purposes and is operated on a not-for-profit basis. 

 

          The purpose of these concessions is to encourage and support certain not-for-profit and charitable organisations where the land use is considered to contribute to the health and well being of the community and the social enrichment of residents.

 

(c)     Hardship Concession

          Council may grant a concession where it can demonstrate that the payment of the rates or charges will cause extreme hardship to the land owner.

 

(d)     Other Concessions

          Council will receive and consider applications from ratepayers where Council is satisfied that the application meets the eligibility criteria as provided for in Section 120 (1) of the Local Government Regulation 2012. Applications for concessions under this section will be considered and determined by Council on a case by case basis. 

 

1.4    Recovery of Unpaid Amounts of Rates and Charges

 

Council will exercise its rates recovery powers pursuant to the provisions of Chapter 4 Part 12 of the Local Government Regulation 2012 in order to reduce the overall rate burden on ratepayers, and will be guided by the principles of:

§  Fairness & Equity - by treating all ratepayers in similar circumstances in the same manner; and by making every attempt to follow-up on outstanding rates and charges prior to taking legal action;

§  Transparency – by making clear the obligations of ratepayers and the processes used by Council in assisting them meet their obligations;

§  Efficiency – by making the process used to recover outstanding rates and charges simple to administer and cost-effective.

§  Flexibility – by providing ratepayers with a number of options to meet their rate obligations.

4.5.    Charges for Local Government Services and Facilities

With the exception of fees and charges associated with Council’s Business Activities, there are broadly two types of fees and charges:

 4.5.1 Cost Recovery (‘Regulatory’) Fees and Charges (s97 of the Local Government Act 2009)

These are fees under a local law or a resolution, which involve:

(a)     an application for the issue or renewal of a licence, permit, registration or other approval under a Local Government Act (an application fee); or

(b)     recording a change of ownership of land; or

(c)     giving information kept under a Local Government Act;

A cost recovery fee must not be more than the cost to Council of taking the action for which the fee is charged.

Whilst Council notes that, pursuant to Section 97 of the Local Government Act 2009, it may introduce a tax component into a regulatory fee in order to achieve a social or other objective, it is not Council’s intention to encompass a tax in any regulatory fee.  Accordingly, Council will not recover more than the cost of administering the regulatory regime.

4.5.2  Other (‘Commercial’) Fees & Charges

Council will apply, as a minimum and as far as practicable, the principle of full cost recovery (including overheads) in setting charges for services and facilities, including community or non-profit organisations.

Council may give consideration to charging at less than the full cost of the service / facility when it considers it appropriate to do so in order to achieve social, economic or environmental goals. 

When the service or facility supplied is of a commercial nature, then Council will give consideration to including a ‘return on investment’ element in the charge.  Such consideration will be made on a case by case basis.

4.6     Fees & Charges for Business Activities (Subject to National Competition Policy)

          In setting charges for a business under National Competition Policy reforms, Council’s pricing strategy will apply full cost pricing principles whilst also meeting other economic, efficiency and social objectives.  Full cost pricing means that on average, prices should fully recover all the relevant costs of supplying a product or service including:

(a)     direct costs;

(b)     indirect non-capital costs;

(c)     capital costs (includes return on capital, interest payments, debt guarantee fees and return of capital (depreciation));

(d)     tax equivalent adjustments; and

(e)     other competitive neutrality adjustments.

Council may decide to apply charges at less than full cost pricing in order to achieve social, economic, environmental or other objective.  In making any such decision the reason for the decision will be clearly set out in the resolution together with the estimated amount of revenue to be foregone in the subject year.

When any such decision is applied to a Commercialised Business Unit, the direction to the Commercialised Business Unit will be recognised as a ‘community service obligation’ and a subsidy shall be paid to the Commercialised Business Unit and that subsidy shall be recognised in the accounts of the Commercialised Business Unit.

4.7       Funding of New Development

            To minimise the impact of physical and social infrastructure charges on the efficiency of the local economy Council will be guided by the principle of user pays in the making of physical and social infrastructure charges for new development, to the extent permissible by law.  Council may depart from applying this principle if it is determined by Council that it is in the community interest to do so.

 

Special Provisions

 

N/A

 

Related Policies and Legislation

 

Local Government Act 2009

Local Government Regulation 2012

 

Associated Documents

 

Revenue Statement 2014/15

Fees and Charges Register 2014/15

 

 

 

 

 


Attachment 1

Legislative Provisions for Cost-recovery fees and Commercial charges 2014/15

 

Attachment 2 – Legislative Provisions for Cost-recovery fees and Commercial charges 2013/14

 

97 Cost-recovery fees

 

(1) A local government may, under a local law or a resolution, fix a cost-recovery fee.

 

(2) A cost-recovery fee is a fee for—

 

(a) an application for the issue or renewal of a licence, permit, registration or other approval under a Local Government Act (an application fee); or

 

(b) recording a change of ownership of land; or

 

(c) giving information kept under a Local Government Act; or

(d) seizing property or animals under a Local Government Act; or

(e) the performance of another responsibility imposed on the local government under the Building Act or the Plumbing and Drainage Act.

 

(3) A local law or resolution for subsection (2)(d) or (e) must state—

 

(a) the person liable to pay the cost-recovery fee; and

 

(b) the time within which the fee must be paid.

 

(4) A cost-recovery fee must not be more than the cost to the local government of taking the action for which the fee is charged.

 

(5) However, an application fee may also include a tax—

 

(a)  in the circumstances and for a purpose prescribed under a regulation; and

 

(b) if the local government decides, by resolution, that the purpose of the tax benefits its local government area.

(6) The local law or resolution that fixes an application fee that includes a tax must state the amount, and the purpose, of the tax.

 

(7) If an application fee that includes a tax is payable in relation to land, the tax applies only in relation to land that is rateable land.

 

(8) A local government may fix a cost-recovery fee by resolution even if the fee had previously been fixed by a local law


Attachment 2

Travel Radius Map

 


Attachment 3

Legislative Provisions Fees and Charges

 


Attachment 4

Consolidated Fees  Charges 2014-15 Final

 

























Attachment 5

RSMS application - 2013 14

 


Attachment 1

Deed of Easement

 




















Attachment 2

Map Showing Easement Area

 


Attachment 3

Correspondence from Santos

 


Attachment 1

MRC Submission to Federal Government Inquiry - Trade and Investment Relationships with Countries of the Middle East (15 May 2014)

 

 

Enquiries:  Ryan Gittins

Phone:     4624 0769 (Direct) or

                 1300 007 662 (via Customer Service)

Our Refs:  D14/25162; D14/32228

 

 

15 May 2014

 

 

By Email

Committee Secretary

Joint Standing Committee on Foreign Affairs,

Defence and Trade

Canberra, ACT 2600

jscfadt@aph.gov.au

 

Attention:  Mr Andrew Dawson

 

 

Dear Sir

 

Inquiry into Australia’s Trade and Investment Relationships with Countries of the Middle East

 

The Maranoa Regional Council (MRC) welcomes the Federal Government’s Inquiry into Trade and Investment with the Middle East. The Free Trade Agreement (FTA) that is currently under negotiation with the Gulf Cooperation Council (GCC) has the potential to increase demand for Australian products, such as goat meat, in the Middle Eastern market.

 

The MRC is located approximately 6 hours west of Brisbane, in southeast Queensland. The region is comprised of ten townships and numerous gazetted localities throughout the 58,711 km2 Local Government Area (LGA). As of 30 June 2013, the region was home to approximately 13,710 residents and 4,665 non-resident workers. In addition to the local Coal-Seam Gas (CSG) industry, the agricultural sector is a driver of economic growth and employment in the Maranoa, accounting for approximately 20% of the workforce and 50% of registered businesses.

 

MRC suggests that the agricultural industry should diversify into new product offerings, to satisfy the demand of GCC members. Middle Eastern countries, such as Bahrain, United Arab Emirates, Saudi Arabia, and Qatar are amongst the highest importers of goat meat in the world. The abolition of trade barriers will increase the competitiveness of Australia’s goat meat products, which is currently an underdeveloped industry. ABS data indicates that live goat exports and meat products contribute only $9 Million and $79 Million (gross value) to the national economy respectively, regardless of the high global demand for this product. Australia is the largest exporter of goat meat; however, our national production only accounts for 0.3% of global demand. MRC suggests that goat production is a sector of importance, and should be developed with view to increasing exports into both the Middle East and China.  

 

 

The Maranoa region is positioned to support the construction and operation of a multi-purpose meat processing facility, capitalising on its close proximity to significant cattle and goat herds. In 2011/12, the Border Rivers–Maranoa Natural Resource Management (NRM) region was home to approximately 1,170,000 head of meat cattle (9.8% of QLD total), with 312,574 head sold at the Roma Saleyards over the same period.

 

In addition to meat cattle, farms in the Maranoa, and surrounding regions of Western NSW and Southwest QLD, account for approximately 57% of the national goat herd. A goat processing plant exists in Charleville (southwest QLD); however, anecdotal reports indicate that this facility may not have the capacity to increase its production rate. Given Roma’s (and the MRC) close proximity to goat and cattle farms, it is speculated that the construction of a multi-purpose meat processing facility would result in the following benefits:

 

 

·    Developing an industry that will support increased local employment. The Queensland Government’s Queensland Plan targets increased regional population growth in the state (plans indicate that approximately 50% of the state’s population will reside out of SE Qld by 2043).

·    Increasing the production (and export) of goat meat to cater for the Chinese and Middle Eastern markets (the biggest markets for goat meat exports)

·    Reduce transportation costs for local primary producers by locating a processing facility in a regional area. Farmer’s competitiveness and sustainability may be improved, thus reducing their reliance on government subsidies in times of drought.

Council requests the Federal Government’s support to commission a feasibility study into the construction of a multi-purpose meat processing facility (goat, cattle & sheep) in Roma. It is proposed that the expenses associated with the study are split directly between Council and the Federal Government, at a cost of approximately $75,000 each.

 

Thank-you for your consideration of MRC’s submission. If you have any further queries, please contact Council’s representative, Ryan Gittins, Specialist – Business Development, on one of the numbers listed above

 

Yours faithfully

 

 

 

Julie Reitano

Chief Executive Officer


Attachment 1

Draft Procurement Policy

 

1.         Purpose and Objective

The purpose of the Maranoa Regional Council’s (Council) Procurement Policy is to set down key principles and outline Council’s framework for conducting Procurement and Contracting Activities in a manner that complies with the applicable laws, including Local Government Act 2009 (QLD) (LGA 2009) and Local Government Regulations 2012 (QLD) (LGR 2012).

 

Council’s procurement activities aim to deliver excellence in procurement outcomes for Council and the community by:

 

§ promoting value for value for money with probity and accountability; and

 

§ providing reasonable opportunity for competitive local businesses that comply with relevant legislation to supply to Council; and

 

§ facilitating the procurement of goods and services in the most timely and cost effective manner; and

 

§ ensuring that all procurement activities are carried out in a professional manner and that all Council officers responsible for purchasing goods and services are adequately trained and have a clear understanding of the procurement processes, as well as their meaning and intent.

2.         Scope

This policy and associated documents apply to the procurement of all goods, equipment, and related services, building and civil construction contracts and services contracts (including maintenance) and the disposal of assets by Council as defined in the LGA 2009 and LGR 2012.

3.         Definitions

Contract

means a contract (including purchase order and purchase card transactions) for:

 

(a)  the supply of goods or services; or

(b)  the carrying out of work; or

(c)  the disposal of valuable non-current assets.

 

In this instance, the term does not include a contract of employment between Council and a Local Government Employee.

 

Genuine Emergency

includes:

(a)  any time that the Local Disaster Coordinator is performing a function under the Disaster Management Act 2003; or

 

(b)  any time an event occurs resulting in actual or likely loss of life or serious injury to person/s and where action from Council may prevent or reduce the actual or likely loss of life or serious injury to person/s, or aid and assist in response to the event; or

 

(c)  any time an event occurs resulting in actual or likely serious damage to property and where action from Council may prevent or reduce the actual or likely serious damage, or aid and assist in response to the event.

 

Government Agency

means:

(a) the State, a government entity, a corporatised business entity or another local government; or

(b) another Australian government or an entity of another Australian government; or

(c) a local government of another State.

Low-Value Contractual Arrangement

is a contractual arrangement with a supplier that is expected to be worth, exclusive of GST, less than $15,000 in a financial year.

Large-Value Contractual Arrangement

is a contractual arrangement with a supplier that is expected to be worth, exclusive of GST, $200,000 or more in a financial year.

 

Note:  The expected value of a contractual arrangement with a supplier for a financial year is the total expected value of all of the local government’s

contracts, in the financial year, with the supplier for goods and services of a similar type – rather than an individual transaction.

 

LGA Arrangement

means a pre-qualified supplier register that has been entered into with Local-Buy.

 

Medium-Value Contractual Arrangement

is a contractual arrangement with a supplier that is expected to be worth, exclusive of GST, $15,000 or more but less than $200,000 in a financial year.

 

Note:  The expected value of a contractual arrangement with a supplier for a financial year is the total expected value of all of the local government’s

contracts, in the financial year, with the supplier for goods and services of a similar type – rather than an individual transaction.

 

Probity

is the evidence of ethical behaviour in a particular process.

 

Procurement

is the entire process by which all classes of resources (human, material, facilities and services) are obtained. This can include the functions of planning, design, standards determination, specification writing, selection of suppliers, financing, contract administration, disposals and other related functions.

 

Purchasing

is the acquisition process for goods, services and capital projects through purchasing, leasing and licensing.

 

Supplier

means an enterprise known to be capable of supplying required goods and/or services. It includes manufacturers, stockists, resellers, merchants, distributors, consultants and contractors.

 

Valuable Non-Current Asset

means land or another non-current asset that has a value equal to or more than the limit set by Council.  For all other non-current assets excluding land, the limit set by Council cannot be more than $5,000 for plant and equipment; and $10,000 for other non-current assets.

 


 

4.         Details

4.1       Key Document Relationships

The Procurement Policy has the following relationships to other key strategic and administrative Financial Management documents:

 

Local Government Act 2009 (Qld)

Local Government Regulation 2012 (Qld)

 

 
 

 

 

 

 

 


                                                                                         

Corporate Plan

 

(Actions to be achieved in the short to medium term

i.e. within 5 years)

 

 
Flowchart: Document: Maranoa Regional Council Procurement Policy 

(Adopted by Council)

Design and Implementation of Organisational Processes and Procedures

 

(Approved by CEO)

 
 

 

 


                                                           

                    

Guides Development

 
 

 


                                                                             

 


                       

Operational Plan

(Work Program)

 

(Actions to be achieved in the short  term

i.e. within the next year)

 

 
                                   

 

 

 

 

 

 

 



4.2       Procurement Principles

Council will conduct its Procurement and Contracting Activities in a manner that ensures its financial sustainability by establishing a procurement management system based on the following “sound contracting principles”:

4.2.1   Value for Money (LGR 2012, s. 198.)

PRINCIPLE 1:

We drive value for money in our procurement of goods and services including construction contracts”

 

 

The concept of value for money is not restricted to the price of the goods, services or works.  Council will consider a number of factors when assessing value for money including but not limited to:

 

i.    contribution to the advancement of Council’s priorities;

 

ii.    fitness for purpose, quality, services and support;

 

iii.   whole-of-life costs, including costs of acquiring, using, maintaining and disposal;

 

iv.  internal administration costs;

 

v.   risk exposure; and

 

vi.  the value of any associated environmental benefits.

 

4.2.2   Open and Effective Competition (LGR 2012, s. 198.)

PRINCIPLE 2:

We use organisational [procurement] process and work together as ‘one Council’, across Directorate and Department boundaries, to achieve savings and benefits through open and effective competition

 

 

 

 


All Procurement and Contracting Activities will be conducted by Council using an open and competitive process.  Open and effective competition will be achieved by ensuring that:

 

i.    procurement procedures and processes are transparent and minimise subjectivity;

 

ii.    prospective suppliers are given fair and equitable consideration; and

 

iii.   evaluation of offers is undertaken in accordance with legislation, procedures and evaluation criteria applicable to the quote or tender document.


 

4.2.3   Development of Competitive Local Business and Industry (LGR 2012, s. 198.)

 

PRINCIPLE 3:

 

We seek and implement identified opportunities to achieve ‘more with less’ through the development of competitive local business and industry, innovate service delivery and enhanced capability and performance”

 

 

 

 

 

Council encourages the development of competitive local businesses within the Maranoa Region, and will endeavour to promote and support competitive local industry in its Procurement and Contracting Activities.

 

When price, performance, quality and suitability and other evaluation criteria are comparable, Council may also consider the following factors when conducting its Procurement and Contracting Activities:

 

i.    creation of local employment opportunities;

 

ii.    economic growth within the local area; and

 

iii.   readily available servicing support.

 

 

4.2.4   Environmental Protection (LGR 2012, s. 198.) and Workplace Safety

 


PRINCIPLE 4:

 

We use organisational [procurement] processes to advance Council’s environmental and safety objectives and support long-term wellbeing of our employees and community

 

 


Council will seek to complement its broader environmental and safety commitments and initiatives through its Procurement and Contracting Activities. 

 

Whilst conducting Procurement and Contracting Activities, Council will:

 

i.    promote the purchase of environmentally friendly and safe goods and services that satisfy the value for money criteria; and

 

ii.    foster the development of products and processes of low environmental impact; and

 

iii.   consider the safety record of prospective Suppliers and their ongoing commitment to a safe workplace.


 

 

4.2.5   Ethical Behaviour and Fair Dealing (LGR 2012, s. 198.)

 

PRINCIPLE 5:

 

We build the confidence of stakeholders and the community in Council’s [procurement] management through integrity, accountability, ethical behaviour and fair dealing

 

 


Council will conduct its Procurement and Contracting Activities with impartiality, fairness, independence, openness, and integrity to ensure probity, transparency and accountability for its procurement outcomes.  Council will promote ethical and fair dealing by:

 

i.    ensuring legislative and policy compliance in Procurement and Contracting Activities;

 

ii.    ensuring compliance with Employee and Councillor Codes of Conduct and the Public Sector Ethics Act 1994;

 

iii.   creating and maintaining a robust and effective procurement process that operates in a mature probity environment; and

 

iv.  identifying and managing possible, real or perceived conflicts of interest between Council, its Local Government Employees and prospective or existing Suppliers.

 

4.3       Responsibility

This policy applies to all Local Government Employees or elected members of Council, who undertake any part of the Procurement and Contracting Activities on behalf of Council.  It is the responsibility of the Local Government Employee or elected member of Council to understand the meaning and intent of this policy.

4.3.1   Limitation on Non-Council Employees involved in Procurement Activities

Persons engaged in contracts for services with Council, such as consultants and project managers are not authorised to initiate any procurement process, or contract on behalf of Council.

However, persons engaged by Council on Service Contracts or Consultancy Agreements, or particular external subject matter experts, may be invited to form part of evaluation panels and provide advice and expertise during the procurement process, however they cannot initiate or undertake any activity that binds Council in contract.


 

4.4       Entering into Contracts - Procurement and Contracting Activities

4.4.1   Application to Council Contracting

Unless one of the exceptions outlined in 4.5 applies, Council will conduct its Procurement and Contracting Activities, having regard to the procurement principles (Section 4.2), in the following manner:

Contract Type

Legislative Requirement

Low-Value Contractual Arrangements

Worth less than $15,000 (GST exclusive)

Council will implement an appropriate and effective internal procurement process (see Procurement Manual), having appropriate regard to the procurement principles, for contractual arrangements worth less than the $15,000 (GST exclusive) threshold. 

Medium-Sized Contractual Arrangements

$15,000 to $200,000 (GST exclusive)

LGR 2012, s. 225.

Council will not enter into a medium-sized contractual arrangement, without first inviting written quotes for the Contract from at least 3 persons the Council considers can meet the Council’s requirements at competitive prices.

Council may decide not to accept any of the quotes it receives.

Council may decide to invite written tenders for medium sized contractual arrangements if the contract is high risk or complex in nature.

Large-Sized Contractual Arrangements

$200,000 + (GST exclusive)

LGR 2012, s. 226.

Council will not enter into a large-sized contractual arrangement without first,

(a)   inviting written tenders; or

(b)   inviting expressions of interest (EOI) before considering whether to invite written tenders, where Council decides (by resolution) that it would be in the public interest to invite expressions of interest before inviting written tenders.

Where Council invites an EOI before considering whether to invite written tenders, Council may prepare a short-list from respondents to the invitation to EOI and invite written tenders from the shortlist.

Council may decide not to accept any of the tenders it receives.


 

 


Contract for Disposal of a Valuable Non-Current Asset

All land (regardless of value), plant and equipment - $5,000, or any other non-current valuable asset - $10,000

Council will not enter into a Contract for the disposal of a Valuable Non-Current Asset without first:

(a)  inviting written tenders; or

(b)  inviting expressions of interest (EOI) before considering whether to invite written tenders; or

(c)  offering the Valuable Non-Current Asset for sale by auction.

4.5       Exceptions for Medium-Sized and Large-Sized Contractual Arrangements

The LGR 2012 provides a number of exceptions when Council may enter into medium-sized and large-sized contractual arrangements for the supply of good and services.  Those exceptions and circumstances under which they may be exercised are as follows:

Quote or Tender Consideration Plan

LGR 2012, s. 230

Council decides by resolution to prepare a Quote or Tender Consideration Plan and then later adopts the plan.

A quote or tender consideration plan is a document stating—

(a) the objectives of the plan; and

 

(b) how the objectives are to be achieved; and

 

(c) how the achievement of the objectives will be measured; and

 

(d) any alternative ways of achieving the objectives, and

why the alternative ways were not adopted; and

 

(e) the proposed terms of the contract for the goods or

services; and

 

(f) a risk analysis of the market from which the goods or

services are to be obtained.

Approved Contractor List

LGR 2012, s. 231

[Two Step Process – Expressions of Interest to establish an approved contractor list, then for each project, a decision on who will be invited to provide a price]

An approved contractor list is a list of persons who the local government considers to be appropriately qualified to provide the services.  

 

The local government must put together the approved contractor list by inviting expressions of interest advertised in the local newspaper for at least 21 days and making a selection having regard to sound contracting principles.      For each project, and having regard to the sound contracting principles, Council may enter into a Contract directly with a Supplier on the Approved Contractor List without first inviting quotes or tenders from other Suppliers on the approved contractor list. 

 

Register of Pre-Qualified Suppliers (RPQS)

LGR 2012, s. 232.

 

[Single Step Process – Capability & Price Established by Tender].

A local government may establish a register of pre-qualified suppliers of particular goods or services only if—

 

(a) the preparation and evaluation of invitations every time

the goods or services are needed would be costly; or

 

(b) the capability or financial capacity of the supplier of the

goods or services is critical; or

 

(c) the supply of the goods or services involves significant

security considerations; or

 

(d) a precondition of an offer to contract for the goods or

services is compliance with particular standards or

conditions set by the local government; or

 

(e) the ability of local business to supply the goods or services needs to be discovered or developed.

 

A pre-qualified supplier is a supplier who has been assessed by the local government as having the technical, financial and managerial capability necessary to perform contracts on time and in accordance with agreed requirements.

 

The local government must call tenders advertised in the local newspaper for at least 21 days and make a selection having regard to sound contracting principles.

 

For each project, and having regard to the sound contracting principles, Council may place a purchase order directly with a supplier on a register of pre-qualified suppliers without first inviting quotes from other persons on the register of pre-qualified suppliers.  

 

Preferred Supplier Arrangement (PSA)

LGR 2012, s. 233.

A local government may enter into a Preferred Supplier Arrangement for goods or services if a local government—

(a) needs the goods or services—

(i) in large volumes; or

(ii) frequently; and

 

(b) is able to obtain better value for money by accumulating the demand for the goods or services; and

 

(c) is able to describe the goods or services in terms that would be well understood in the relevant industry.

 

The local government must call tenders advertised in the local newspaper for at least 21 days, advise the terms of the Preferred Supplier Arrangement (including ability to cancel in the case of poor performance of the supplier) and make a selection having regard to sound contracting principles.

 

A Preferred Supplier Arrangement may be entered into for a term of more than 2 years (including extensions) only if the local government is satisfied the longer term will result in better value for the local government.

 


Local Government Association Arrangement

LGR 2012, s. 234.

The Contract entered into under an LGA Arrangement.

Sole Supplier

LGR 2012, s. 235(a).

Council resolves it is satisfied that there is only one supplier who is reasonably available.

Specialised Supplier

LGR 2012, s. 235(b).

Council resolves that, because of the specialised or confidential nature of the services that are sought, it would be impractical or disadvantageous for Council to invite quotes or tenders.

Genuine Emergency

LGR 2012, s. 235(c).

Where a genuine emergency exists (see Section 3).

Auction Purchase

LGR 2012, s. 235(d).

The Contract is for the purchase of goods and is made by auction.

Second-Hand Goods

LGR 2012, s. 235(e).

The Contract is for the purchase of second-hand goods.

Government Agency

LGR 2012, s. 235(f).

The Contract is made with, or under an arrangement with a government agency.

4.6       Exceptions for Disposal of Valuable Non-Current Assets

Exceptions for valuable non-current asset disposal other than by tender or auction can only be exercised if the valuable non-current asset:

(a)  was previously offered for sale by tender or auction and was not sold;

(b)  is sold for more than the highest tender or auction bid that was received;

(c)  is disposed of to a government agency; or

(d)  is disposed of to a community organisation.

4.7       Other Legislative Obligations

4.7.1   Powers to Delegate

Council may delegate, by resolution, a power under the LGA 2009 or another Act to the Chief Executive Officer (CEO).  The Council may not delegate a power that an Act states must be exercised by resolution.

Under Section 238 of the LGR 2012, Council delegates the CEO power related to make, amend or discharge a contract for Council under the following provisions:

(a)  where expenditure has been provided for in Council’s budget for that financial year; or

(b)  the contractual action is taken because of a genuine emergency; and

(c)  where purchasing arrangements have been established.

4.7.2   Procurement and Contracting Activity Delegation

The CEO is authorised to enter into contractual arrangements on behalf of Council within the expenditure delegation.  Delegations are recorded in the Register of Delegations contained electronically in Authority.

Other Local Government Employees can only enter into contracts (including Purchase Orders) on behalf of Council if:

(a)  the employee has been granted financial delegation by the CEO; and

(b)  it is in accordance with the delegation threshold granted by the CEO; and

(c)  the contractual action is taken because of a genuine emergency.

4.7.3   Procurement Policy Maintenance and Review

It is the responsibility of the CEO to monitor the adequacy of this policy. This policy will be formally reviewed by Council annually to ensure continued suitability.

 

5.         Related Policies and Legislation

 

                        Local Government Act 2009 (Qld)

            Local Government Regulation 2012 (Qld)

            Statutory Bodies Financial Arrangements Act 1982 (Qld)

            Public Sector Ethics Act 1994 (Qld)

            Disaster Management Act 2003 (Qld)

                        Quality Management Policy

            Workplace Health and Safety Policy

            Environmental Management Policy

 


 

6.         Associated Documents

 

            Maranoa Regional Council’s Corporate Plan

            Annual Operational Plan (Work Program)

            Employees’ Code of Conduct

            Councillors’ Code of Conduct

            Procurement Manual

            Council’s Delegation Register

            Quality, Safety & Environment Management System Documents

            Queensland Procurement Policy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

            _____________________________                                                  __________________________

            MAYOR                                                                                              CHIEF EXECUTIVE OFFICER

 

            Date: ____/____/____                                                             Date: ____/____/____