NAMBUCCA SHIRE COUNCIL

 

 

Ordinary Council Meeting - 27 February 2014

 

LATE AGENDA                                                                                        Page

 

 

 

   

9        General Manager Report

9.9     Bowraville Off River Water Storage - Extension for Insurance for Works and Public Liability. 2

10      Assistant General Manager Corporate Services Report

10.7   Donations Program (Section 356) 2014/2015 - Bowraville War Memorial Refurbishment........ 4    

 

 

 

 

 

 


      


Ordinary Council Meeting                                                                                              27 February 2014

General Manager's Report

ITEM 9.9      SF1669            270214         Bowraville Off River Water Storage - Extension for Insurance for Works and Public Liability

 

AUTHOR/ENQUIRIES:    Michael Coulter, General Manager         

 

Summary:

 

A summary is not required.

 

 

Recommendation:

 

1.       That Council note the acceptance of the pro-rata extensions for contract works material           damage and public liability insurances for the Bowraville Off River Water Storage.

 

2.       That Council note the extenuating circumstances for not going to tender on the insurance           policies being that NSW Public Works arranged for the brokering of the original policies;           that the extensions are pro-rata the original policies; and that given the on-going delays in           achieving practical completion of the dam it would be difficult, if not impossible, to go           through a tender process for the insurance extensions.

 

 

OPTIONS:

 

There are no feasible options.

 

DISCUSSION:

 

On behalf of Council, NSW Public Works negotiated insurance policies for contract works material damage and public liability for the Bowraville Off River Water Storage.  The premium for both polices was $517,655 and they commenced on 10 August 2012 for a term of 61 weeks – ending on 10 October 2013, the expected practical completion date for the dam.

 

NSW Public Works have negotiated two pro-rata extensions to the policies.  The first extension from 11 October 2013 through to 28 February 2014, a period of 20 weeks with a premium for both policies of $173,800 and the second extension for a period of 17 weeks from 1 March 2014 to 30 June 2014 with a premium for both policies of $149,925.

 

Neither of the premiums for the two extensions has been paid for and to ensure continuing insurance coverage it is now critical that they be paid.  Accordingly following discussions with Mr Kevin Plummer of NSW Public Works, the General Manager and the Mayor, arrangements were made on 25 February for the invoices to be paid.

 

Section 55 of the NSW Local Government Act requires that Council go to tender for any contracts with a value of more than $150,000.  However the tendering requirement is not applicable if:

 

“(i) a contract where, because of extenuating circumstances, remoteness of locality or the unavailability of competitive or reliable tenderers, a council decides by resolution (which states the reasons for the decision) that a satisfactory result would not be achieved by inviting tenders”

 

Given that NSW Public Works arrange for the brokering of insurance for all major NSW public works at very attractive rates and that the policy extensions are pro-rata the original premium, there is no prospect that Council would achieve a reduced premium through a tender process.  Unfortunately the on-going delays in achieving the practical completion of the dam mean that it is difficult, if not impossible, to go through a tender process for the insurance extensions.

 

Mr Plummer did enquire about a reduced premium for the second extension on the basis that the wall was coming out of the ground and there was less risk.  However the insurers have advised that whilst the risk is less there is more infrastructure to damage.

 

Council will recall from the commencement of the contract that the original tender documents and costings provided for an insurance excess of $25,000 per event.  However just prior to signing the contracts, it was advised that NSW Public Works had only been able to secure an insurance policy with an excess of $200,000 per event.  A number of options for dealing with the additional insurance excess were considered and in the end it was agreed to a variation to the contract to pay Haslin Constructions Pty Ltd an additional $700,000 to accept all of the additional risk associated with the increased excess.  The NSW Public Works will need to negotiate with Haslin Constructions in relation to the excess for these insurance extensions.

 

CONSULTATION:

 

There has been consultation with Mr Kevin Plummer from NSW Public Works.

 

SUSTAINABILITY ASSESSMENT:

 

Environment

 

There are no implications for the environment.

 

Social

 

There are no social implications.

 

Economic

 

There are no economic implications.

 

Risk

 

There are considerable insurance risks, particularly with the potential for damage and delay to the contract works.

 

FINANCIAL IMPLICATIONS:

 

Direct and indirect impact on current and future budgets

 

The additional insurance premiums will cost Council $323,725 with any additional excess to be negotiated with Haslin Constructions.  Council has made a submission to the Minister for Primary Industries, the Hon Katrina Hodgkinson seeking additional funding under the Country Towns Water Supply Program towards the unforeseen additional work in the core trench and associated delay costs.  The additional insurance costs should be part of that claim.

 

Source of fund and any variance to working funds

 

The budget of the dam will need to be carefully managed towards practical completion to ensure Council has sufficient funds in hand to pay the final claims.

 

Service level changes and resourcing/staff implications

 

There are no service level implications.

 

Attachments:

There are no attachments for this report.  


Ordinary Council Meeting                                                                                              27 February 2014

Assistant General Manager Corporate Services Report

ITEM 10.7    SF25                270214         Donations Program (Section 356) 2014/2015 - Bowraville War Memorial Refurbishment

 

AUTHOR/ENQUIRIES:    Colleen Henry, Grants and Contributions Officer         

 

Summary:

 

Council financial and in-kind support for the refurbishment of the Bowraville War Memorial in High Street has been sought from the Bowraville and District Sub-branch of the RSL. An amount of $1,000 will go toward the total cost of the project and the in-kind work will be the removal and transfer of the existing concrete surround, which is estimated at $2,200. Due to the timing of the project and other grant applications, the organisation requires confirmation outside the current round of the Donations Program. The request of $1,000 is in keeping with the amounts awarded under last year’s program.

 

 

Recommendation:

 

That Council approve a $1,000 donation from the Section 356 allocation and that arrangements be made to carry out the in-kind work in association with other Council work in the area. 

 

 

OPTIONS:

 

That Council not approve the donation and in-kind support.

 

DISCUSSION

 

The Sub-Branch has been successful in their application for funding for the project under the NSW war memorial program, however the amount will not meet the full cost of the project. The contribution of $1,000 and in-kind work from the Council will enable the project to go ahead.

 

Council last year agreed to waive the development application fees ($2,330) for the development of the new Macksville War Memorial.

 

CONSULTATION:

 

General Manager

Assistant General Manager Engineering Services

 

SUSTAINABILITY ASSESSMENT:

 

Environment

 

There are no environmental impacts associated with this report.

 

Social

 

With the celebration of the Anzac Centenary in 2015, the community will benefit from the improved Memorial.

 

Economic

 

There are no economic impacts associated with this report.

 

Risk

 

There are no risks associated with this report.

 

FINANCIAL IMPLICATIONS:

 

Direct and indirect impact on current and future budgets

 

The in-kind work has been estimated at $2,200. The work should be carried out in conjunction with other Council work in the area so that work is done in the most cost-effective manner.

 

Source of fund and any variance to working funds

 

$1,000 will be taken from the Section 356 funds as established by Council.

 

Service level changes and resourcing/staff implications

 

No change or implications.

 

Attachments:

There are no attachments for this report.