AGENDA                                                                                                   Page


1        General Manager Report

12.3   Section 94 Developer Contributions - Community Facilities and Open Space Contribution Plan 2008

2        Director Environment and Planning Report

12.2   40 Rural-Residential Lot Quota - Ballot

3        Director Engineering Services Report

12.4   Procurement Policies and Procedures - Resubmitted

12.1   Councillors Induction - Tour of Facilities



Starts 8.30am








Item No

08.45 - 9.15

Item 1(a)





9.15 - 9.30

Item 1(b)

Dam - Site Inspection & address by GHD




9.45 - 10.15

Item 1(c)

Nambucca Heads STP




10.20 - 10.40

Morning Tea




10.40 - 11.00

Item 1(d) Nambucca Heads Library




11.45 - 12.20

Item 1(e) Works Depot






Committee Room



1.00 pm

Rural Residential Lot Ballot




1.30 -1.45 pm

Bruce Potts--Section 94





1.45 - 2.15 pm

Policy Review - Procurement







Works Inspection Committee

15 October 2008

General Manager's Report

ITEM 12.3    SF544              151008         Section 94 Developer Contributions - Community Facilities and Open Space Contribution Plan 2008


AUTHOR/ENQUIRIES:     Bruce Potts, Section 94 Co-ordinator         




At Councils Ordinary Meeting of 3 July 2008 it was resolved to endorse the Draft Community Facilities and Open Space Developer Contribution Plan 2008 and place it on public exhibition in accordance with the provisions of the Environmental Planning and Assessment Regulation 2000. The public exhibition of the draft plan is now finished and this Report details outcomes and submissions received from the public.






1        That Council adopt the Draft Nambucca Shire Community Facilities and Open Space Contribution Plan 2008.


2        That Councils decision be publicly notified in the Nambucca Guardian at the earliest opportunity.


3        That the Contribution Plan commence from the date Council’s decision is publicly notified in the Guardian.






Council may decide not to adopt the Contribution Plan.





Contribution Plan Objectives


The format of the 2008 contribution plan follows the guidelines set down by the Department of Planning (2005) and clearly sets out the principles by which Council will collect and use monetary contributions collected under section 94.


The 2008 contribution plan has the objectives of:

(a)  identifying community infrastructure to be provided through the use of developer contributions collected under the previous plan

(b)  identifying community infrastructure to be provided through the use of future contributions collected under this plan

(c)  authorising Council to use previously collected funds on equivalent projects of a section 94 purpose where the original project is no longer required or is no longer appropriate to the community need

(d)  being reviewed and amended, where required, on completion of Community Facility and Infrastructure Needs Study so as to accurately meet future demand.


Public Exhibition and Consultation

Copies of the Draft Plan were distributed to senior Council officers for comment.


External consultation was undertaken through the public exhibition of the Draft Contribution Plan at Councils Administrative Centre Macksville, and Nambucca Heads Public Library. Notice of the Public Exhibition was advertised in The Guardian newspaper.


Internal Consultation: No submissions on the Draft Plan were received.


External Consultation:

A total of eight (8) submissions were received. Of the submissions seven (7) were received by due date and time and one (1) was received after the exhibition period had closed.


All eight submissions received have been considered.


Summary of Submissions Received


Submissions were received from:


§ The Coordinator, Nambucca Valley Neighbourhood Centre

§ Mr Ted Loury

§ Nambucca Heads Community Action Group

§ The Outreach Coordinator’ Macksville Campus, TAFE NSW North Coast Campus

§ AH & SM Rapley

§ Mr Chris Hewgill

§ Councillor Michael Moran

§ Councillor Rhonda Hoban


Overall the submissions indicated support for the Draft contribution plan.


Two detailed submissions expressed possible ambiguities within Part A and Part B of the plan, concerning the administration and operation of the contribution plan.


A general response to these is provided below:


§ The Draft Contribution Plan was prepared using the Practice Notes and Guidelines issued by the NSW Department of Planning 2005 for the preparation of Developer Contribution Plans. The draft was prepared paying heed to proposed changes in the Legislation which at the time of this Report have yet to be proclaimed.


§ Developer contributions are authorised to be levied, or demanded, as a condition of consent under s.94 of the Environmental Planning and Assessment Act, hence the contribution plan is commonly referred to as a Section 94 Plan. Any reference to section 93 of the Act within the plan only refers to the authority of Council to enter into a voluntary planning agreement in conjunction with, or as an alternative to, an applicant making a cash contribution under the section 94 plan.


§ There is no Legislative requirement to make any further reference to section 93.


§ Similarly the contribution plan has been drafted with the clear intention to explain as cogently as possible the foundations and methodology supporting the calculation of base contribution rates, the nexus relating to assigned projects and expenditure of previously collected contributions as required by the Act and attendant EP&A Regulation 2005.


§ All statistical data cited within the plan is publicly available from the Australian Bureau of Statistics and is referenced to the 2006 Census for statistical catchments within the Nambucca Shire Local Government Area.


§ The Works Program, detailing expenditure and project type was prepared by the Director Engineering,  Director Environmental Planning and Manager Finance, in conjunction with the Developer Contributions Project Coordinator.





The Draft Community Facilities and Open Space Contribution Plan 2008 has been placed on public exhibition and the community has been provided with the opportunity to participate in the planning process. Interested organisations and individuals have provided valuable input through the submissions, with the majority of those received indicating overall support for the contribution plan.





Discussed in Report







No significant issues identified.




New facilities for recreational use.  Section 94 Plans form an important strategic tool for Council and as such provide long term sustainability of infrastructure and facility delivery.




Section 94 Plans generates income as a result of development and the associated additional needs.




The timing of delivery of projects is subject to the level of development activity.





Direct and indirect impact on current and future budgets


Section 94 developer contributions represent a significant income stream for Council. As such this plan offers considerable financial and resource benefits over the immediate and mid term.


Source of fund and any variance to working funds


The funds to be applied to this plan have already been accumulated.




Contribution Plans and Submissions to be Circularised.


Works Inspection Committee

15 October 2008

Director Environment & Planning's Report

ITEM 12.2    SF1175            151008         40 Rural-Residential Lot Quota - Ballot


AUTHOR/ENQUIRIES:     Greg Meyers, Director Environment and Planning         




In accordance with Council’s resolution from the 2 October 2008 Ordinary meeting, the drawing of the 40 rural-residential lots is scheduled to take place at this General Purpose Committee meeting commencing at 1.00 pm.





1          That Council proceed with the ballot for the 40 rural-residential lots in accordance with Council’s resolution from Council’s 2 October 2008 Ordinary Meeting.


2          That all successful persons drawn in the ballot be advised of their draw and what they now have to do to lodge their application.


3          That all unsuccessful persons be advised and their order of draw.





Council has already resolved to proceed with the ballot and other than not proceeding, there are no real other alternatives.





Council established criteria for the allocation of the 40 rural-residential lots provided by the Department of Planning through an Interim Quota at its 5 June 2008 Council meeting. This criteria was subsequently reviewed and amended at Council’s 3 July 2008 meeting following the Public meeting on the Draft Rural-Residential Land Release Strategy in Macksville on 1 July 2008.


Expressions of Interest were called through public advertisements in the Guardian News (17 & 31 July, 14 & 28 August 2008), the Midcoast Observer (14 & 28 July, 11 & 25 August 2008), The Happynings (21 July, 4 & 18 August 2008), it was also included in the newsletter that was sent out with every 2008/09 rate notice and placed on Council’s Website. The EOI’s closed at close of business on Monday 1 September 2008, with 64 EOI’s being received. (Cover sheet for each EOI is circularised)


Acknowledgement letters was sent to each EOI received whether compliant or not.


Each EOI was allocated a consecutive number as they were received and registered through Council’s electronic document management system (TRIM), starting with the number 1.


A full list of all EOI’s received with their allocated receipt numbers, whether compliant or not, was prepared and placed in the Foyer of Council’s Administration Building at 44 Princess Street Macksville on Wednesday 3 September 2008.


Any EOI that did not comply with the above criteria has been identified and excluded from the ballot with the person/s lodging the EOI advised in writing outlining the reason why they have been excluded. There were 4 EOI’s that did not comply with the above criteria, two were within the identified Yellow on the map in the Draft Rural-Residential Land Release Strategy and two were excluded as they did not comply with the existing holding criteria. In this case 4 EOI’s were submitted over 4 lots being two existing holdings.


A breakdown of the EOI’s:


22 EOI’s seeking only one additional lot                              (  22        additional lots in total)

  2 EOI’s seeking two additional lots                                   (    4        additional lots in total)

36 EOI’s seeking the maximum 3 additional lots                  (108         additional lots in total)


Total additional Lots = 134





Department of Planning

General Manager







There is no environmental impact due to this report.




The allocation of an interim Quota of 40 lots will provide some opportunity for development of rural-residential land.




There is no economic impact due to this report.




There are several risks with only an Interim lot quota, which will only see 40 new lots created, where it has been demonstrated that landowner interest exceeds the 40 lots available. No doubt some landowners will be disappointed with the ballot result.





Direct and indirect impact on current and future budgets


There are no direct and indirect costs with this report.


Source of fund and any variance to working funds


There are no variations required with this report.




Please see circularised documents of all Expressions of Interest Received




Works Inspection Committee - 15 October 2008

40 Rural-Residential Lot Quota - Ballot

Attachment 1

Please see circularised documents of all Expressions of Interest Received






Placeholder for Attachment 1




40 Rural-Residential Lot Quota - Ballot




Please see circularised documents of all Expressions of Interest Received





Works Inspection Committee

15 October 2008

Director of Engineering Services Report

ITEM 12.4    SF265              151008         Procurement Policies and Procedures - Resubmitted


AUTHOR/ENQUIRIES:     Noel Chapman, Manager Civil Works         




As part of an ongoing review of Council Policies and working towards better practice, two new policies and a procurement procedures manual have been prepared.


The draft policy – Procurement of Goods and Services and the Procurement Procedures Manual have been amended to expand on the clauses relating to sustainable purchasing, complaints and risk.





That Council adopt the following:


·           Policy - Procurement of Goods and Services

·           Policy - Council Purchasing Cards

·           Procurement Procedures Manual






Not adopt the polices and manual.





There has been no comprehensive review of Council’s Purchasing/Procurement policies and procedures for some considerable time.  The attached documents have been prepared to facilitate the procurement process and provide guidelines for all departments to follow.


The Department of Local Government Auditor also identified a need to improve Council’s ordering and purchasing procedures (Rec 17 & 18) and these documents address his recommendations.





General Manager

Director Engineering Services

Director Environment and Planning

Manager Financial Services







The policy and manual identify environmental issues as evaluation criteria and environmental sustainability is identified in the policy philosophy.


A commitment to the principles of the NSW Local Government Sustainable Choice Programs is also made in the policy.





There are no social impacts.




Provides a framework for competitive tenders and quotations leading to the most cost effective procurement choices.  Whole of Life assessment will result in the lowest long term cost impact.




The adoption of purchasing guidelines should minimise the possibility of inappropriate procurement activities.





Direct and indirect impact on current and future budgets


There could be some direct or indirect impacts on current and future budgets due to higher costs of recycled products.


Source of fund and any variance to working funds


There is no risk.




2610/2008 - POLICY  DRAFT - Procurement of Goods and Services

3 Pages


2676/2008 - POLICY  DRAFT- Council Purchasing Cards

4 Pages


3569/2008 - DRAFT - Procurement Procedures Manual

32 Pages



Works Inspection Committee - 15 October 2008

Procurement Policies and Procedures - Resubmitted

Attachment 1

2610/2008 - POLICY  DRAFT - Procurement of Goods and Services

















Last reviewed: 




1.0     Policy objective


To establish the administrative framework required for the implementation of Council's procurement arrangements as follow:


·             To facilitate the procurement of goods and services in the most timely, cost effective and environmentally sustainable manner

·             To ensure Nambucca Shire Council meets its Legal and Statutory obligations

·             To ensure all purchasing activities are carried out in a professional manner

·             To ensure all delegated officers have a clear understanding of their responsibilities

·             To allow flexibility to departments provided that all activities are completed within Council's guidelines, instructions and Legal obligations and approved Budget allocations

·             That all practices and procedures regardless of the size of the transaction be open and transparent and able to withstand public scrutiny.



2.0     Related legislation and documents


Local Government Act 1993

Local Government (General) Tendering Regulation 2005

NSC Procurement Procedures Manual

NSC Policy—Council Purchasing Cards



3.0       Policy Philosophy


Council requires a large volume of materials, works, goods and services to meet its functional needs.  The purpose of this document is to define the policies by which these requirements can be fulfilled.


This policy is designed to ensure expenditure is applied efficiently and effectively in line with council’s overall Mission.  To attain this goal, the parameters are defined in this policy, within which all goods, works and services must be obtained:


·     Open and effective competition

·     Council recognises the need to support local businesses when appropriate

·     Techniques designed to obtain the best prices/value available will be applied

·           Potential suppliers will be given fair and equitable consideration for each tender or quotation submitted

·     Environmental sustainability

·     Risk management.






4.0     Policy statement


All general purchasing, tenders and quotations shall be conducted in accordance with Council's Procurement Policy, Procurement Procedures Manual and other instructions as issued by the General Manager.



5.0     Responsibilities


Council's Procurement Policy together with its Procurement Procedures Manual clearly defines purchasing authorities, responsibilities and guidance for all staff at Council.



6.0     Tenders


It is the responsibility of staff involved in the tendering process to carry out the process in accordance with the Local Government (General) Tendering Regulation 2005 and subsequent updates, and the tendering procedures set out in Nambucca Shire Council's Procurement Procedures Manual.



7.0     Quotations


Quotations shall be sought as per the requirements set out in the Procurement Procedures Manual.


7.1     Tender and Quotation Evaluation


Tenders and quotations shall be evaluated in a transparent manner on the basis of quality, suitability of goods for the purpose for which they are intended, service, sustainability, trading terms, timely delivery, and whole of life price.  Where all of these factors have been considered and are equal, and a local supplier (Nambucca Shire Council Local Government area) has submitted a quotation, the local supplier shall be given preference.



8.0     Purchasing of Recycled Products


Council is committed to the principles of the NSW Local Government Sustainable Choice program.




Wherever possible, Council employees and contractors will pursue the following goals and adhere to the specified objectives when purchasing products and services (noting that these impacts should be considered during the entire life cycle of the product, ie the production, distribution, usage and end of life stages):


·              Minimise Unnecessary Purchasing – only purchase when a product or service is necessary.

·              Minimise Waste – purchase in accordance with avoid, reduce, reuse and recycle strategies.

·              Save Water and Energy –purchase products that save energy and/or water.

·              Minimise Pollution – avoid purchasing products that pollute soils, air or waterways.

·              Non-Toxic – avoid purchasing hazardous chemicals that may be harmful to human health or ecosystems.

·              Greenhouse Benefits – purchase products that reduce greenhouse gas emissions.

·              Biodiversity & Habitat Protection – purchase in accordance with biodiversity and conservation objectives.

·              Value for Money – purchase for best value for money in the long term.




Council’s objectives through sustainable purchasing are to:


·              Eliminate unnecessary inefficiency, waste and expenditure.

·              Contribute to the combined purchasing power of local government to further stimulate demand for sustainable products, including materials collected through Council’s kerbside collection.

·              Advance sustainability by participating in “closing the life-cycle loop”.

·              Increase awareness about the range and quality of products available.

·              Deliver Council’s commitments in relation to ecologically sustainable development (ESD) and other environmental and social objectives.

·              Play a leadership role in advancing long-term social and environmental sustainability.



9.0     Hunter Councils Inc (Regional Procurement)


Council supports the Memorandum of Agreement between Member Councils and Hunter Council's Inc (Regional Procurement).



10.0   Other Contracts


Council recognises the NSW State Government contracts and contracts available through Local Government Purchasing (LGP) and Strategic Purchasing (formally MAPS).



11.0   Purchasing Cards


Procedures and agreement relating to issue and use of a Purchasing Card use are set out in Council's policy—Council Purchasing Cards.



12.0   Risk Management


All suppliers, where applicable, must comply with current Environmental, Occupational Health & Safety & Workers’ Compensation legislative requirements and regulations and shall effect and maintain appropriate insurance policies.


Purchasing decisions are to include compliance with these requirements.



13.0   Complaints from Third Parties


Any complaint received regarding Council’s procurement process shall in the first instance be immediately referred to the General Manager.  All such complaints to remain strictly confidential until fully investigated by the General Manager.


Subject to the General Manager’s findings the following action may apply:


·         Advise the complainant that no breach of policy has been substantiated

·         In the event of a minor breach reprimand the person at fault and reinforce Council’s procedures

·                 For suspected major breaches the General Manager may refer the matter to ICAC and/or the Department of Local Government

·         A confirmed major breach would result in activation of Council’s disciplinary policy



14.0      This policy replaces the following policies:


·         Plant – Tenders and New Purchases Proference to Local Vehicle Suppliers

·         Plant – Tenders and New Purchases “Open” Tendering and Quotations

·         Accounting and Finance Creditors Orders and Payments




Works Inspection Committee - 15 October 2008

Procurement Policies and Procedures - Resubmitted

Attachment 2

2676/2008 - POLICY  DRAFT- Council Purchasing Cards


















Last reviewed: 




1.0     Policy objective


·     Streamline the current order process in respect of small value local procurements. 


·     Promote workplace efficiency by empowering staff to purchase direct from preferred local suppliers.


·     Reduction in administration costs in respect of small value local procurements.


·     Free up Council's purchasing staff to enable them to focus on procurements strategy.



2.0     Related legislation


Local Government Code of Accounting Practice and Financial Reporting.


3.0       Definitions


A Purchasing Card is a bank credit card or store card used for smaller, miscellaneous purchases.


The Purchasing Coordinator is an employee with the responsibility of overseeing the use of the Purchasing Card.


Council’s Allocation Number is the job number as identified in the Fujitsu Administration System.



4.0     Policy statement


Council purchase cards will be issued to authorised employees to enable them to purchase small value goods and services direct from participating local suppliers.  The cards will be subject to a monetary limitation of $500.00 per invoice and will only be accepted by suppliers within the Nambucca Shire who have entered into an agreement with Council.


The Local Government Code of Accounting Practice and Financial Reporting provides (Accounting Records 11.3.3(b)) "Council must not enter into a contract for the acquisition and services without an approved order except under the following circumstances:  contract resulting from credit/procurement cards which have been approved by Council and are within its authorised terms and conditions".



5        Card Procedures


Conditions applying to purchasing card purchases


·     Are the Goods available from the Council Store?


If the goods are held as an inventory item and it is not impractical because of distance, time or other constraints, you should obtain the item through the Council Store rather than use the purchase card.


·     Does the purchase exceed my delegated card limit for the amount of expenditure?


It is the cardholder's responsibility to ensure purchases are within the limits of delegated authority as defined by the General Manager and noted on the employee's purchase card ($500.00 per invoice).


The monetary limit on the card refers to the maximum value of goods to be acquired on a per invoice basis.  Cardholders are prohibited from splitting purchases for the purpose of acquiring goods and services above the cardholder's maximum limit. 


·     Participating suppliers


The purchasing card may be used only at participating suppliers, the list of suppliers (Suppliers Listing attached) will be maintained and reviewed on a regular basis by the Purchasing Coordinator.


·     Cards are assigned to employee


The cards will be issued to individual employees who are to assume responsibility for the card's security and usage.  Card rights are non transferable, should work practices indicate that additional cards be required, application should be made in accordance with the policy.


·     Personal use


The card is for official Council business only and may not be used for personal items under any circumstances.  Breaches of this will constitute disciplinary action in accordance with Council's policies and Code of Conduct.


·     Card information


The following information will be recorded on the Council purchase card:


   -   Employee Name

   -   Employee Number

   -   Employee Signature

   -   Employee designated purchase limit.


·     Information to be recorded on purchase


Employees using purchase cards will ensure that the following information is provided to the supplier:


   -   Purchase card is to be produced as authority to purchase

      -   Employee is to provide Council's allocation number in respect of the items purchased, the

          allocation number is to be recorded on the suppliers invoice/tax invoice.  Separate invoices/tax

          invoices are required for each allocation.

      -   Employee is to sign the supplier's tax invoice and record their employee number on the

          invoice/tax invoice

      -   Suppliers shall ensure that the above information is provided and that the total value of the

          purchase is less than the monetary limits as recorded on the employee's purchase card

      -   Suppliers shall retain the authorised supplier invoice/tax invoice and shall attach them to the

          supplier statement

      -   Suppliers have the right to refuse supply where the above requirements are not met.


·     Card cancellation


Cancellation of a purchasing card will occur when the:


   -   Cardholder changes job function within Council

   -   Cardholder terminates employment with Council

   -   Cardholder has not adhered to set procedures

   -   Card is no longer required

   -   Card is misused.


Upon cancellation the purchase cards are to be returned to Council's Purchasing Coordinator, the Purchase Coordinator shall:


   -   Cancel the card

   -   Update the Purchase Card Register to record the card cancellation.



6        Account Payment


·     Council shall maintain a separate Account with suppliers in respect of the purchase card transaction

·     Supplier shall forward statements and supporting tax invoices within seven (7) days of the end of the preceding month to Council for payment on the last Thursday of the month

·     Council's Purchasing Coordinator shall check the statement and authorise payment of the accounts.  The Purchasing Coordinator in authorising the account shall ensure:


-   all supporting documentation is duly signed by the Council employee

   -   invoices are within the monetary limits assigned by the cardholder

   -   purchases are ones reasonably expected to be made on behalf of Council

      -   Purchasing Coordinator may seek the concurrence of the employee's supervisor when

          conducting an audit of card usage.


·     Council undertakes to pay all invoices for goods purchased using Council's purchase card and duly authorised by the Council employee's signature.



7        Purchasing card application


Application for a purchase card shall be made on the Council "Purchase Card Application Form".  The criteria and procedure for the assessment and issue of the purchase card is set out below:


·     Proposed Cardholder


-   Demonstrate to his/her supervisor how the provision of purchasing cards will improve and

    simplify the purchasing procedure for the work area defined by the proposed cardholder

-   Complete the application form and obtain approval of the Supervisor and Director

-   Forward these forms to the Purchasing Coordinator

-   The issue of the card to the employee will serve as a delegated authority to acquire goods and

    services on behalf of Council subject to the monetary limitations as set out on the card.


·     Supervisor


-   Must approve the issue of the card and verify the monetary limit in respect of the card. 

    The maximum monetary limit per invoice shall be $500.00.

-   Must accept responsibility for the correct use of the purchasing card and ensure its security

    at all times.


·     Purchasing Coordinator


-   Will check that the proposed cardholder has been authorised and that mandatory forms have

     been completed

-   Arrangements for the issue of the card.  Cards will be handed personally to those persons

    applying for the purchasing card.  The Purchasing Coordinator shall instruct the cardholder on

    the use of the card and ensure the cardholder signs for the card.



8        Supplier Agreement


Supplier Agreement setting out the provisions as outlined under the policy for acceptance of the Council Purchase Cards will be required.



9        List of Suppliers



·     Mitre 10, Macksville

·     Tinks

·     Norco

·     Macksville Paint Barn

·     Harris Hire

·     Sable Engineering

·     Nambucca Plumbing

·     Nambucca Building hardware

·     M & H Webb Pty Ltd

·     Repco

·     Others as authorised by the General Manager.



10      History


Information received from Kempsey Shire Council expenditure patterns reveals that some 65% of local invoices processed by Council were for value under $250.00, considerable administration work is involved in processing these orders.  It is expected that the same trend would apply to Nambucca Shire Council.





Works Inspection Committee - 15 October 2008

Procurement Policies and Procedures - Resubmitted

Attachment 3

3569/2008 - DRAFT - Procurement Procedures Manual



























Prepared By:

Department Engineering Services

Mr N Chapman



Effective From







Works Inspection Committee - 15 October 2008

Procurement Policies and Procedures - Resubmitted

Attachment 3

3569/2008 - DRAFT - Procurement Procedures Manual









3.1        Responsibility for the Purchasing and Supply Function.. 1

3.2        Role and Responsibility of Users. 2

3.3        The "Value for Money" Concept and Relationships with Suppliers. 2

3.4        Conflicts of Interest and Personal Behaviour.. 2

3.5        Delegated Authority.. 2

3.5.1.     GM Authority. 2

3.5.2.     Financial delegation. 3

3.6        Goods and Services Tax (GST) 3

3.7        Risk Management.. 3

3.8        Whole of Life Costing (Capital Purchases) 3

3.9        Environmental Principles. 4

3.10       Buy Recycled Products and Services. 4


4.1        General Procedure. 5

4.2        Contracts Exempt from the Tendering Process. 6

4.3        Preferred Supplier Contacts. 7

4.4        Emergency Purchases. 7

4.5        Petty Cash.. 7

4.6        Contractors Weekly Timesheets. 8

4.7        Credit Card.. 8

5      TENDERS. 8

5.1        Tender Procedure. 9

5.2        Tender Evaluation.. 10

5.3        Evaluation Criteria.. 10

5.4        Local Preference. 11


6.1        Determining the need to engage a consultant.. 11

6.2        Planning the project and the engagement.. 11

6.3        Developing the specification and conditions of engagement.. 12

6.4        Inviting and receiving bids. 12

6.5        Selecting a consultant.. 12

6.6        Engaging a selected consultant.. 12

6.7        Managing the project and the consultant.. 12

6.8        Evaluating the performance. 13

6.9        Guidelines for developing a consultancy brief. 13

6.10       Contents of a Consultancy Brief. 13

6.10.1        Introduction. 13

6.10.2        Regional Characteristics. 13

6.10.3        Discussion. 13

6.10.4        Objective. 13

6.10.5        Scope of Works. 13

6.10.6        Deliverables. 14

6.10.7        Format of Consultancy Report 14

6.10.8        Timing. 14

6.10.9        Supporting Information. 14

6.10.10      Methodology / Approach. 14

6.10.11      Agreement 14

6.10.12      Statement of Business Ethics. 14

6.10.13      Payment and Fees. 14

6.10.14      Insurances and GST. 14

6.10.15      Selection Criteria. 15

6.10.16      Submission Details. 15

6.10.17      Ownership and Copyright 15

6.10.18      Termination. 15

6.11       Consultancy Agreement.. 15

6.12       Legislation and Council Policies to be observed by Consultants. 15

7      QUOTATIONS. 16


8.1        State Government Contract (Smartbuy) 16

8.2        Hunter Councils (Regional Procurement) 16

8.3        Local Government Purchasing (LGP) 16

8.4        Strategic Purchasing (formally MAPS) 16

9      ORDERING.. 17

9.1        Requisitions, Requisitioning and Authorisation.. 17

9.2        Completion of a Purchase Requisition for General Purchases. 17

9.3        Completion of a Purchase Requisition for Direct Orders (eg verbal confirmation orders) 17

9.4        Authorities to Requisition Goods and Services. 18

9.5        Things to Remember.. 18

9.6        Delivery Address. 18

9.7        Miscellaneous Purchases. 18

9.8        Purchasing of Materials Already Kept as Inventory.. 19

9.9        Outstanding Order Reports. 19

9.10       Returning of Goods to Suppliers: 19

9.11       Cancellation of Purchase Orders. 19

10     Payment. 20

10.1       Payment of all invoices/accounts will be made within 30 days of statement.. 20

10.2       General. 20

10.3       Purchase Order/Invoice Price Adjustments. 21



13     APPENDIX A. 22

Tender Evaluation Sample Form... 22

14     APPENDIX B - Whole of Life Costing - New Earthmoving Equipment/Plant. 25






Works Inspection Committee - 15 October 2008

Procurement Policies and Procedures - Resubmitted

Attachment 3

3569/2008 - DRAFT - Procurement Procedures Manual




The document details Council’s purchasing supply and payment systems and provides guidelines for:


a          the requisitioning and authorising function to ensure all personnel are aware of their responsibilities in respect of the ordering/purchasing of goods or services on behalf of the organisation.

b          a recognition of value for money as the prime purchasing objective and adoption of a principle of open and effective competition:

c          to establish a purchasing function which provides both accountability for purchasing and flexibility in obtaining alternatives for goods and services from suppliers given current resources available.

d          to provide and communicate all personnel with a set of clear guidelines in respect to the purchasing of all goods and services on behalf of the organisation.

e          to ensure all personnel are aware of their respective responsibilities in relation to the receipt of goods and services delivered to the organisation.

f           establishment of the most beneficial payment procedures on behalf of the organisation with regard to customer relations and agreed cash flows to provide all personnel with a set of clear guidelines in respect to the payment of invoices for all goods and services obtained on behalf of the organisation.


In proposing these guidelines it has been recognised that there is a need to maintain integrity in the Purchasing Supply and Payment system and overall confidence within it. The proposed guidelines incorporate existing principles of ethics, fairness and opportunities to compete for the organisation’s business. But greater emphasis should be laid on the major objective of Purchasing Supply and Payments which is to support the "organisation’s programs by achieving value for money in acquiring goods and services in the most effective and efficient manner given current resources available”.



Nambucca Shire Council does not operate a Centralised Purchasing System. The responsibility of purchasing within Nambucca Shire Council rests with each Department or individuals within the various sections of Council. The only centralised purchasing within Nambucca Shire Council is purchase of ‘stock’ items with responsibility resting with the storekeeper.



3.1     Responsibility for the Purchasing and Supply Function


The responsibility for the purchasing and supply function within Nambucca Shire Council lies with each department and individual officers within the various operational sections of Council.


In exercising their responsibilities employees granted authority to undertake purchasing and supply functions must address the following in the exercise of their duties:


·        efficient use of resources

·        improved relationships with suppliers and subsequent long term savings

·        ensure dealings with suppliers and service providers are conducted in a professional manner

·        ensure the application of consistent and standard policies and practices in dealing with suppliers and service providers

·        time and cost savings for Council staff

·        true ‘value for money’ and actual real cost savings for Council.


3.2     Role and Responsibility of Users


Users of the purchasing and supply system shall ensure that:


·        they comply with all established purchasing and supply policies and procedures

·        all requests for a purchase will be accompanied by a properly completed and authorised requisition

·        there are funds available prior to requesting quotations/tenders or submitting a request for purchase

·        work closely with storekeepers to establish realistic yet cost efficient stock levels

·        have the necessary delegated authority to expend funds as detailed on the request for purchase (ie both in monetary and product/service terms).


3.3     The "Value for Money" Concept and Relationships with Suppliers


·           Put simply the "value for money" concept means that in sourcing and ordering goods and services Council should not look at price alone as the principle determinate of purchasing decisions. Instead it should look at minimising whole of life cost. This involves an analysis of suitability of the product for Council's requirements and specifications, its quality and durability. It should be "fit for purpose".

·           Environment issues are taken into consideration.

·           It is essential to develop and maintain good business relations between Council and its suppliers and service providers.

·           Ensuring all supplier representatives are given a full, fair, prompt and courteous hearing.

·           Keeping open and fair competition amongst potential suppliers and service providers.

·           Ensuring specifications are fair, accurate and clear.

·           Maintaining consistent buying policies and principles.

·           Observing strict truthfulness in all transactions.

·           Ensuring that the integrity of Council's purchasing staff is not compromised through any conflict of interests.

·           Risk management issues are addressed.


3.4     Conflicts of Interest and Personal Behaviour


Council has formally adopted the (Code of Conduct) for Local Government. In exercising their authority in respect of Council's purchasing and supply functions, staff must ensure they do not breach the Code, particularly in the following areas:


·           conflict and disclosure of interest

·           personal benefit (personal purchases for employees by the Council are prohibited except a purchase under a salary sacrifice agreement.)

·           personal behaviour (Council employees are also prohibited from using Council's name or the employee's position to obtain special consideration in personal purchases)

·           no Council employee having responsibility for any purchasing transaction, shall solicit, accept or agree to accept from any supplier, or his representative, money, services, goods or anything of more than token or nominal value.


3.5     Delegated Authority


In order for staff to carry out their responsibilities effectively, they must be able to exercise appropriate authority to purchase goods and services for their area of responsibility. It is Council's responsibility to ensure staff are delegated appropriate authority in line with their level of responsibility and accountability.


Such authority should be limited according to the following criteria:

3.5.1  GM Authority

·           At his discretion, the General Manager may further delegate his authority with in the limits

·           All delegated authority shall be recorded in the register of delegations

·           Any delegation authorisation and associated purchasing invitation threshold shall be appropriate for the level of judgement expected of individual officers

3.5.2  Financial delegation


·           Shall be limited to the authorised signatories within the following parameters.


3.6     Goods and Services Tax (GST)


The GST was introduced on 1July 2000 and Council's activities are subject to the GST legislative requirements. All purchases made by Council will require payment of the GST. However Council will generally be able to claim back the GST paid as Input Tax Credits except where the service is "Input Taxed".


The current ordering system requires that all orders be written out for the GST inclusive price.


The GST legislation requires that all invoices for a taxable supply contain the following information:



Invoices for less than $50

No additional information.


Invoices for less than $1000

The words "Tax Invoice", the ABN and name or trading name of the supplier, the name and address of the recipient, the date of issue of the invoice, a description of the goods and/or services provided, the amount charged - GST inclusive.


For invoices $1000 or more

As above in (2) but also the name and address or ABN of the recipient (ie Council) and the quantity or volume supplied.


All invoices

Must be made out to Nambucca Shire Council.


Note that for a mixed supply of GST free and taxable supplies, the invoice must identify the GST separately against the taxable supply.


Where an ABN is absent from any invoice supplied for payment Council will be obliged to deduct 48.5% withholding tax from any supply including goods and services and remit that tax to the Australian Taxation Office.


Council does not have to deduct the withholding tax for failure to quote an ABN in the following situations:


·           The whole of the payment is exempt income of the supplier (ie the supplier is a charity).

·           The creditor/supplier (payee) has made a written signed statement that the supply is private or domestic in nature, or relates to a hobby. If this statement is received and Council has reasonable grounds to believe the statement is false, Council will still withhold (ATO fact sheet nat 3067).


3.7     Risk Management


·           All suppliers and service providers, where applicable, must comply with current Environmental, Occupational Health and Safety and Workers Compensation legislative requirements and regulations and shall effect and maintain appropriate insurance policies. For further information relating to Risk Management issues, please refer to council’s policies and procedures as listed:


·           Hired Plant and Equipment Risk Assessment Policy

·           Safe Use and Operation of Plant Policy

·           Managing Contractor OHS Risks Procedure

·           Pre Purchases Assessment Procedure


3.8     Whole of Life Costing (Capital Purchases)


A decision to purchase a Capital Item should be made in accordance with an existing budget allocation. Consideration must also be given to the ongoing annual costs for operation, maintenance and disposal costs to determine if sufficient funds are available for these items. The following table highlights the significant increase in annual costs for a relatively small capital purchase. This annual service cost calculation should be made for all capital acquisitions









$ 8,000





$  640

8% pa



$  800

10 years



$ 7,600

/ annum



$  500

/ annum



$  100

$1k over 10 yrs


$ 8,000

$ 9,640

$13.20 per use

If used twice per day on average



Note:       A separate WOL calculation applies for Major Plant Purchases and an example is provided in Appendix B.



3.9     Sustainable Purchasing Policy Principles


3.9.1  Purchasing Goals


              Whenever possible, Nambucca Shire Council employees and contractors will pursue the following goals and adhere to the specified objectives when purchasing products and services (nothing that these impacts should be considered during the entire life cycle of the product, ie the production, distribution, usage and end of life stages.


·         Minimise Unnecessary Purchasing – only purchase when a product or service is necessary.

·         Minimise Waste – purchase in accordance with avoid, reduce, reuse and recycle strategies.

·         Save Water and Energy – purchase products that save energy and/or water.

·         Minimise Pollution – avoid purchasing products that pollute soils, air or water ways.

·         Non Toxic – avoid purchasing hazardous chemicals that may be harmful to human health or ecosystems.

·         Greenhouse Benefits – purchase products that reduce greenhouse gas emissions.

·         Biodiversity & Habitat Protection – purchase in accordance with biodiversity and conservation objectives.

·         Value for Money – purchase for best value for money in the long term.


3.9.2  Objectives


          Nambucca Shire Council’s objectives through sustainable purchasing are to:


·         Eliminate unnecessary inefficiency, waste and expenditure.

·         Contribute to the combined purchasing power of local government to further stimulate demand for sustainable products, including materials collected through Council’s kerbside collection.

·         Advance sustainability by participating in “closing the life-cycle loop”.

·         Increase awareness about the range and quality of products available.

·         Deliver Council’s commitments in relation to ecologically sustainable development (ESD) and other environmental and social objectives.

·         Play a leadership role in advancing long term social and environmental sustainability.

·         Support local businesses and organisations.

3.9.3  Actions


          To achieve the above objectives, Nambucca Shire Council will:


·         Nominate a staff member as the key contact on sustainable purchasing issues.

·         Establish a sustainable purchasing team (or refer to an existing team already operating within Council) to coordinate, develop and implement this policy.

·         Ensure that sustainable purchasing goals and objectives (above) are incorporated into Council’s purchasing policies and processes.

·         Ensure that staff are fully informed about the benefits of sustainable purchasing.

·         Develop documentation to assist Council staff involved in purchasing to comply with Council’s policy for sustainable purchasing (the Sustainable Choice program will be assisting by providing templates and guidance).

·         Establish a system to monitor and report on the scope and level of sustainable purchasing.

·         Council participation in the Sustainable Choice annual reporting questionnaire to record the scope and level of sustainable purchasing taking place in NSW local government.

·         Include relevant specifications tender documentation and require Council’s contractors and consultants to comply with this policy (the Sustainable Choice Program will be assisting by providing templates and guidance).

·         Participate in the Sustainable Choice program to facilitate sustainable purchasing in local government through staff peer education and information sharing.



3.10   Buy Recycled Products and Services




The purpose of the above Sustainable Choice policy clauses is to provide a purchasing framework that will advance the sustainable use of resources.


Nambucca Shire Council will demonstrate to the community that the purchasing decisions of our employees can improve markets for recycled content products, enhance environmental quality, be resource responsible and contribute to progress toward sustainability.


Council is a participant in the Sustainable Choice and Cities for Climate Change programs to demonstrate its commitment to environmentally sustainable purchasing.




Post-consumer is material generated by households or by commercial, industrial and institutional facilities in their role as end users of the product, which can no longer be used for its intended purpose. This includes returns of material from the distribution chain.


Pre-consumer is material diverted from the waste stream during the manufacturing process. Excluded is re-utilisation of materials such as rework, regrind or scrap generated in a process and capable of being reclaimed within the same process that generated it.


Practicable means satisfactory in performance and available at a reasonable cost.   


Recycled materials are those that have been reprocessed from recovered (reclaimed) material by means of a manufacturing process and made into a final product or into a component for incorporation into a product.


Recycled content products are made from materials that have been recovered, processed and used as a raw material for the manufacture of a useful new product through a commercial process. These products will contain a specified percentage of material that would otherwise have been disposed of as waste.


Re-manufacture means to renew or restore a used product into its original form or into a useful new product through a commercial process.


Sustainable use of resources is use that meets the present needs of the user while also taking into account external and future costs, including costs to the environment, human health and depletion of resources.


Value for money is the identification and inclusion of all direct and indirect costs associated with a particular product or material. This includes the initial cost of purchase, length of warranty, cost of operating the product, anticipated maintenance and repair, and the direct and indirect costs (or financial return) associated with disposal or removal of the product at the end of its useful life.



4.1     General Procedure


Contracts in excess of $150,000


When goods and services with a value greater than $150,000 are being purchased proceed to tender.


Formal tenders are to be invited either by public advertisement in accordance with Section 55 of the Act, or from persons short listed as a result of a public advertisement for expressions of interest in accordance with Clauses 166-169 Division 2, Part 7 of the Local Government (General) Regulation 2005.


Such tenders shall be submitted to Council, together with a recommendation from the Council Officer calling tenders. Alternatively, these recommendations may be from another Officer if specifically approved by the respective Director or the General Manager.


When goods and services with a value less then $150,000 are being purchased the following should occur:


STEP 1                 Decide if the supply is to go to tender


YES             Purchase in accordance with the Local Government Act and Tendering Regulations


Is the supply available under Government Contract?


YES             Purchase goods and services via the issue of Council approved order


Is the acquisition available under a Council approved pre-qualified supply agreement?


YES             Purchase goods and services via the issue of a Council approved order


NO              Purchase in accordance with Step 2 guidelines



STEP 2             If the value of the supply is between $100,001 and $150,000 and falls within limits of delegated authority - proceed to quotations.


Contracts between $100,001 and $150,000


At least three (3) written quotations are to be obtained and the most advantageous to Council shall be selected. The most appropriate quotation may be selected by the General Manager or the relevant Director or Operation Manager. Alternatively, if specifically approved by the respective Director or the General Manager the selection may be made by another Unit Manger. All purchases for capital works or tendered out maintenance over $100,000 must be reported to Council for information.


If the value of the supply is between $20,001 - $100,000


YES             Proceed to quotation


Contracts between $20,001 - $100,000


At least three (3) written quotations are to be obtained and the most advantageous to Council shall be selected. The General Manager, the respective Director, the respective Unit Manager, or other Authorised Officer as determined in writing by the General Manager from time to time, may select the most appropriate quotation.


NO              Purchase in accordance with Step 3 Guidelines



STEP 3             If the value of the supply is between $2,000 and $20,000 proceed to quotation.


Contracts between $2,001 and $20,000


At least two (2) quotations (for construction and related works) are to be obtained and the most advantageous to Council shall be selected. The General Manager, the respective Director, the respective Unit Manager, or other Authorised Officer as determined in writing by the General Manager from time to time, may select the most appropriate quotation.


Verbal quotations may be obtained with confirmation in writing within 7 days.


Contracts between $1 and $2000


Officers with appropriate purchasing delegations are granted discretional authority to purchase goods or services up to a value of $2,000. The officers are required to observe the Local Government Act 1993 in connection with purchasing principles and those guidelines utilised for purchases of a larger nature.


If the supply is less then $500 and the purchase is from a local, endorsed, supplier proceed to purchase using a Purchase Card in accordance with an approved delegation.


4.2     Contracts Exempt from the Tendering Process


1        It should always be remembered that when entering into contracts for any purpose whatsoever, Council has a two-fold obligation.

2        The first is the responsibility to enter into contracts which on a view of all the circumstances, appear to Council to be the most advantageous.

3        The second is the element of public accountability. This means that although Council is not obliged to follow any set procedures in respect of a contract exempt from the tendering process, it is still obliged to adopt procedures which are reasonable in the circumstances and which are perceived by the public as reasonable.

4        Contract Exemptions (Section 55 (3) Local Government Act 1993):

5        a contract entered into by a council with the Crown (whether in right of the Commonwealth, New South Wales or any other State or a Territory), a Minister of the Crown or a statutory body representing the Crown.

6        a contract entered into by a council with another council.

7        a contract for the purchase or sale by a council of land.

8        a contract for the leasing of land by the council.

9        a contract for purchase or sale by a council at public auction.

10      a contract for the purchase of goods, materials or services specified by the State Contracts Control Board or the Department of Administrative Services of the Commonwealth, made with a person so specified, during a period so specified and at a rate not exceeding the rate so specified.

11      a contract for the employment of a person as an employee of the council.

12      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.

13      contract for which, because of provisions made by or under another Act, a council is exempt from the requirement to invite a tender.

14      a contract made in a case of emergency.

15      a contract involving an estimated expenditure or receipt of an amount of less than $100,000 or such other amount as may be prescribed by the regulations.

16      requirements may not be divided into several smaller lots for the purpose of bringing each purchase below the tender threshold limit.


4.3     Preferred Supplier Contacts


1        The term Preferred Supplier refers to suppliers of which goods or services are commonly used by the Organisation and are sourced and analysed by the relevant department to include goods or services that the organisation will purchase from over a period of time.

2        Types of goods or services that may come under the Preferred Suppliers agreements are bituminous products, gravels, concrete, precast concrete products, soil, spare parts, electrical services, building services, bricklaying, concreting, tiling, office equipment, sand, hardware, stationery etc. Professional services such as legal opinions, surveys, sustenance etc will be excluded.

3        These agreements once established will ensure that the operating department still has flexibility to obtain goods or services.

4        Orders may be placed by authorised staff with any one of the preferred suppliers from the listings supplied for goods or services that are required.

5        Under these agreements the detailed process of requisitioning and authorisation procedure still have to be carried out as stated in the relevant requisitioning and authorisation procedures and the written quotation procedures.

6        If for any reason user departments do not wish to use these agreements then they must put their Purchase Requisition (PR) through the system where it will be processed as a general purchase as detailed earlier.


4.4     Emergency Purchases


1        In cases of emergency a contract may be awarded or an order placed, without competitive prices being sought and normal purchasing procedures complied with.

2        An emergency may exist when a breakdown in machinery and/or threatened termination of essential services, including maintenance and repair, or a dangerous condition develops, or when supplies/materials are needed for immediate use in work which may vitally affect the safety, health or welfare of the public.

3        When an emergency develops during normal office hours a written explanation of the circumstances of the emergency shall accompany the purchase requisition and details:

·        the nature of the emergency

·        the estimated cost of the service/goods required

·        the supplier who will likely receive the order

4        If an emergency occurs outside normal business hours the department concerned may purchase directly the required goods/services.

5        The department shall whenever practicable, secure competitive bids and place the order with the lowest responsible supplier.


4.5     Petty Cash


The following procedures must be followed when obtaining petty cash:


·           petty cash limit is $50/transaction.

·           petty cash will only be issued when a receipt for the expense is obtained.

·           a petty cash docket must be attached to the receipt and detail

Ø  date

Ø  correct job number

Ø  description of goods

Ø  signature

·           the petty cash custodian is to update the petty cash records on a fortnightly basis

·           these requirements can only be varied with prior consent of the Finance Manager or Accountant.


4.6     Contractors Invoices


·           These are authorised by the supervisor responsible and endorsed for payment by the relevant manager.

·           The documents are forwarded to the Accounts Payable Section for data entry processing and payment. An example of the Contractors Invoice is provided in Appendix C.


4.7     Credit Card


Sometimes it is necessary to make a purchase by credit card. This may be in the case of booking flights or purchasing publications off the internet.


The General Manager has a corporate credit card for use by Council staff.


To use the corporate credit card:


·           Complete the appropriate “Credit Cards Payment Form” available from the creditors clerk. This includes authorisation by a member of staff with the appropriate delegated authority

·           Organise for your Group Secretary to make the credit card purchase for you. This is necessary as the Group Secretary is the holder of the credit card details

·           Once the payment has been made ensure that you have a copy of the TAX INVOICE for the purchase

·           Attach the TAX INVOICE to the completed Credit Card Payments Form and return to the creditors clerk

5       TENDERS


For contracts in excess of $150,000, formal tenders are to be invited by public advertisement in accordance with Section 55 of the Local Government Act 1993 and the Local Government Tendering Guidelines. Such tenders will be submitted to Council together with a recommendation from the Council Officer or Evaluating Committee calling tenders.


If a Government contract already exists for the Goods or Services in question, then it is at council’s discretion whether it wishes to tender separately or simply use the Government contract already in place.


The tendering methods available to councils under the Regulation are open tenders and selective tenders.


Open Tenders


Clause 167 of the Regulation outlines the provisions for open tender. Open tenders are invited by public advertisement with no restriction placed on who may submit a tender. Tenderers should be required to demonstrate in their submissions that they have the necessary skills, resources, experience, and financial capacity to carry out the work, and that their tender meets the requirements for the request for tender.


Open tenders are usually used for:


·           The supply of goods and services

·           Property purchase or disposal

·           Most civil engineering projects

·           Minor building works


They may also be used where it is inefficient to establish recognised contractor lists through selective tender.


Selective Tender


Section 55(4) of the Act and clauses 168 and 169 of the Regulation outline the provisions for two types of selective tendering:


·           Those invited by expressions of interest through public advertisement

·           Those invited from a councils list of recognised contractors which has been prepared following public advertisement.


Selective tender lists of recognised contractors are often established where:


·           There is a continuing workload in a particular category of work

·           This workload justifies the cost of setting up and maintaining the list

·           In some case, where innovative solutions are sought

·           Government funded works require the use of Pre Qualified Contractors.


Overall management of the selective tender list system should be designed to give a fair distribution of opportunities to all recognised contractors over time. However, the contractor’s past performance is a prime consideration. Other factors that may be taken into account include the location of the work, special requirements of the work, skill level of the contractor and commitments of the contractor.


5.1     Tender Procedure


Council has adopted “Tenderlink” as its preferred system for the management of tenders, Expressions of Interest, major quotations anticipated to be in excess of $150,000 all annual quotations or tenders Aand any other quotation deemed appropriate.

1        The relevant department shall prepare the Tender or Expression of Interest document which is then processed in accordance with the current Tenderlink procedures.

2        The deadline for lodgement of advertisements will be in accordance with the current advertising procedure timetable and as arranged by Tenderlink.

3        It is the responsibility of the relevant department to prepare Tender or Expression of Interest documentation/specifications and to ensure all tender documents are in accordance with the Local Government Act 1993 prior to the advertisement appearing on the website and in the newspapers. Tender documentation shall be made available only from the relevant department. A list will be maintained of the names of companies to whom a tender specification was issued.

4        The closing date for all tenders shall be clearly indicated. Advertisements are to be placed in the Nambucca Valley Guardian News and the Coffs Harbour Advocate in the tenders column and the Sydney Morning Herald (where relevant) on the following Tuesday in the Local Government Tenders column.

5        Where tender advertisements are being placed by consultants the same procedure as outlined above shall apply. The consultants should therefore submit a draft advertisement through the supervising department for their approval and placement.

6        Council is only able to accept electronic submissions via the formal tendering web site. No email submissions are allowed due to a lack of sophisticated encryption software. Tenderers need to be registered on Councils tendering web site and to have downloaded the original tender documents in order to be able to upload an electronic submission. Submissions uploaded electronically are stored until the closing time and ate, upon which time a set of electronic keys is automatically emailed to the Manager Financial Services or the Purchasing Officer. This ensures that the submission is unable to be intercepted and interfered with by any person.

7        Alternatively tenders are to be in sealed envelopes suitably endorsed and placed in the tender box located at Council's Administration Centre, 44 Princess Street, Macksville NSW 2447, prior to the closing time. Tenders received by the Records Section shall show on the envelope the time and date received and be placed in the Tenders Box by Records Section personnel.

8        Where tenders are received before the closing time by way of facsimile or other means the formal tender documents are to be lodged with Council within a reasonable time and must be shown to have been delivered to a post office or delivery company prior to the closing time. The facsimile is to show details ie proof of consignment prior to the closing time.

9        Late tenders will be accepted but will not be considered.

At the time specified for the close of tenders the appropriate officer will remove the envelopes containing the tenders from the Council tender box and open them in the presence of:

·           at least two persons designated by the General Manager, and

·           tenderers and members of the public attending the opening

11      Members of the public who attend opening of tenders for a proposed contract are entitled, on request, to be informed as to whether the Council has received a particular tender and the number of tenders received and is not entitled to receive any other information about the tenders.

12      As soon as practicable after opening of tenders the appropriate officer of the Council will:

·           prepare a list specifying all tenders ranked in alphabetical order.

13      Following registration, the tenders and schedule shall be referred to the Records Section for filing into TRIM then to the responsible department for evaluation and report to Council. Where new assets are being created the evaluation report shall include a Whole of Life Cost (WOL) assessment in order to identify the ongoing operating costs to be allocated. The letter of acceptance to the successful tenderer shall include Council's official order number.

14      All correspondence to the successful and unsuccessful tenderers will be issued by the relevant department as well, displaying in a conspicuous place a notice specifying the name of the successful tenderer and the amount of the successful tender and if none of the tenderers were accepted, a notice to the effect.

15      Two (2) copies of the contract documents shall be prepared by the responsible department and forwarded to the Contractor for signature and then forwarded to Records Manager for attachment of Council's official seal. The documents shall then be forwarded, by Records Manager, to the General Manager’s office for sealing and signing by two Councillors.


5.2     Tender Evaluation


A tender evaluation committee will be formed to evaluate all tender responses. For common use period contracts for the supply of goods and services, the evaluation committee will consist of the following representatives:


·           1 x Strategic Procurement Manager (or Purchasing Officer)

·           1 x Officer responsible for tender lodgement

·           1 x Project Manager


For all other tenders, an evaluation committee is still to be formed and should consist of at least 3 x representatives, led by the head of the department responsible for calling for the particular tender. The department head will choose whom the evaluation committee representatives should be, dependant on the type of goods and services tendered for. It is imperative that the evaluation committee remain representative of the entire council and that the Strategic Procurement Manager be present as one of the committee representatives. There can be more than 3 x representatives on any evaluation committee as long as there are an odd number of committee members.


5.3     Evaluation Criteria


Below are the general key areas to be taken into consideration when evaluating a tender:


·           Whole of Life costs / value for money

·           Track record of Company (general reputation for work competence, delivery services etc)

·           Technical expertise (credentials of key personnel, systems and techniques, depth and nature of support

·           Time performance (ability to provide goods or services on time)

·           Price (type of fee, contingencies, terms and conditions)

·           Enhancement of the capabilities of local business (goods/services) supplied locally, skills/knowledge transfer to local firms)

·           Environmental goods or services purchased are to be of a standard that ensures harmful effects to the environment are minimized. Where economical, preference is to be given to the supply of goods that:

·           Use recycled materials

·           Innovation offered

·           Tenderers performance in OH and S workplace and industrial relations and environmental management practices an performance

·           Quality offered

·           Goods and services encompass Ecologically Sustainable Development (ESD) guidelines

·           Any Pre-qualification from another Government Department.

·           Please note that each individual tender may include its own set of evaluation criteria. The above points are simply the typical factors to be considered when evaluating a tender. Normally no more than 5 or 6 factors will be considered. Normally no more than 5 or 6 factors will be considered. See Appendix A for a sample tender evaluation form.

·           Tenders will be assessed on the basis of Council’s Value Selection System whereby tenders are scored against a list of assessment criteria. These criteria will be weighted and the individual scores summed to give an overall value for each quote. The tender with the highest value becomes the recommended tender. Clarification and additional information may be sought from Contractors in order to ascertain an appropriate score against each criteria.


5.4     Local Preference


The Business Address criteria shall be given a weighting of 10%. A local business address will receive the maximum score for this criterion. The weighting of other criteria shall not be disclosed to contractors.


A local business address is defined as one that is operating within the Nambucca Shire Council area and which maintains a locally staffed company office within the Nambucca Shire.


In the case of a non local supplier/contractor using local subcontractors, the score for the local business address criterion is on a pro-rata basis in proportion to the quoted cost which relates to local subcontractors.



The following points are a guide as to what to consider when appointing a consultant and should be used by Council Officers as justification for wishing to appoint a consultant.


6.1     Determining the need to engage a consultant


The following points should be taken into account when considering the need for the engagement of a consultant:


·           The need for expertise not available in-house

·           The lack of appropriate Council staff or time availability;

·           The contribution the consultancy may make to Councils aims and objectives;

·           That this one particular problem or issue will be the sole focus of the consultancy;

·           An estimate of cost.


The use of consultants in no way removes Councils responsibility for ensuring successful outcomes of the various projects for which consultants are engaged. Close and effective supervision of a consultancy is essential.


Probity and accountability are to be of paramount importance at all stages before, during and after the consultancy period. All consultants are to sign a declaration stating that they have read and clearly understand their obligations under Council's Statement of Business Ethics.


6.2     Planning the project and the engagement


Effective and sound planning at the outset will help ensure successful, cost effective outcomes for consultancy projects. The degree of detail will vary from project to project, but Council Officers involved in engaging consultants should ensure that there is a detailed project plan, specified intended outcomes, a project budget and effective project management. All consultancies will be subject to the formal signing of a consultancy agreement as detailed in section


6.3     Developing the specification and conditions of engagement


The key consideration when preparing documentation for consultants is the achievement of the projects outcomes including best value. This must be achieved in a proper and impartial manner, which will stand up to scrutiny.


Invitations to bid should include information about the task/s and detailed information about the selection process including the selection criteria. The selection criteria should be established in advance in all cases.


For further information on how to develop a comprehensive brief for a consultancy, please refer to Section 8 below.


6.4     Inviting and receiving bids


The estimated value of the consultancy will determine what process is to be followed in actually appointing the consultant. Please refer to Section 4 above for guidance in this matter. It is important to ensure that sufficient time is allowed for consultancies to fully develop their submissions. An unduly short tender period can lead to weak competition, poorly prepared proposals and an inadequate understanding of the engagement requirements.


The same conditions must apply to all consultancies and the same opportunities for obtaining information should be available to all consultancies. All consultancies must be informed of any changes to the conditions of the specification or other information changes, which occur after the invitations are issued and before the closing date. These additional changes to specifications etc become part of the formal quotation and or tender documents issued by Council.


For more detailed information relating to the security of submissions and late submissions, please refer to Section 5 of these guidelines.


6.5     Selecting a consultant


All submissions should be evaluated in a consistent manner against the pre-determined criteria. People who have the relevant skills and knowledge appropriate to the nature of the consultancy should perform the evaluation.


For more detailed information relating the selection of a successful consultancy, please refer to Section 5 of these guidelines.


6.6     Engaging a selected consultant


Following formal approval to appoint a consultant, a formal letter of engagement together with a contract document (if deemed necessary) should be forwarded to the consultancy. Depending on the complexity and value of the project, it may be prudent to obtain legal advice in relation to the contract.


The letter of engagement and or contract should include the following information:


·           The requirements as set out in the original specification;

·           Any specific proposals set out in the winning submission;

·           The content of any subsequent correspondence or negotiations;

·           The indemnity, insurance and any other requirements which may need to be fulfilled and

·           Any other matter that requires special mention.


The letter of engagement and or contract should be capable legally, financially and operationally of protecting Council's interests.


6.7     Managing the project and the consultant


It is essential in the protection of Councils interests that the appointed consultancy is effectively managed by Council Officers. This is important in that it protects against poor or misdirected work on the part of the consultant and allows for early intervention to rectify such situations.


6.8     Evaluating the performance


Post-completion evaluation of projects is critical to ensure that lessons can be learnt and experiences applied in the future to other projects or consultancies. In particular, valuable lessons can be learnt from the most successful and the least successful projects.


If evaluating the consultant’s performance, the following should be taken into account:


·           Quality of work;

·           Timeliness;

·           Final cost compared to budget;

·           Methodology;

·           Working relationships and

·           Other factors that may be relevant.


6.9     Guidelines for developing a consultancy brief


The following guidelines are provided as a form of template for Council Officers responsible for developing Consultancy Briefs. It is an attempt to bring some consistency to the development of Consultancy Briefs across Council.


6.10   Contents of a Consultancy Brief


The overriding aim of a consultancy brief is to give prospective consultants as much information as possible relating to the specific project at hand, including some general background information on Council and the Local Government Area (LGA).

6.10.1 Introduction

The introduction should state briefly and clearly the purpose of the consultancy and the reasons why this consultancy is required. The introduction acts as brief summary of the requirements of the consultancy brief.

6.10.2 Regional Characteristics

It is important to include some general facts and figures pertaining to the Nambucca Shire Council LGA, including other LGA areas if relevant and appropriate. This should include general information about the location of the LGA, the population and general economic information etc.

6.10.3 Discussion

This section of the brief should begin to expand on the information contained in the introduction. The Discussion should focus on the background information relating to the consultancy brief and the reason a consultancy brief is required for this specific project.

6.10.4 Objective

This is one of the most critical aspects of any consultancy brief; it should detail succinctly Council's key objective for the particular consultancy brief and why a consultant is required to perform these documented tasks.

6.10.5 Scope of Works

This is also one of the most critical aspects of any consultancy brief. The scope of works is where Council sets out the details of the works to be performed by the consultancy. The scope of works is the critical aspect of the brief that all consultancy submissions will be measured against. Council has a responsibility to ensure that as much information as is known at the time is provided to the consultancies so that they can submit a comprehensive submission addressing Council's requirements. An inadequate scope of works can result in sub-standard consultancy submissions and perhaps more importantly an underestimation of the cost of such a consultancy, which can lead to additional unbudgeted costs to Council.

6.10.6 Deliverables

These are the key tasks that need to be delivered as a minimum to achieve the project objectives and scope of works and to satisfy the requirements of the brief. The deliverables should be clearly stated so that there is no confusion or possible alternative interpretation by the consultants or Council staff – ultimately this is how the consultancy will be measured in relation to its success or otherwise.

6.10.7 Format of Consultancy Report

Always ensure that you detail in the brief exactly how many copies of the consultancy report you require and in what format you may need them delivered in. Generally you would ask for multiple copies of the report, in line with the number of people assessing the report – or at a minimum, two copies, one for the review panel and one for the Records Section to put on file. Also detail whether you require an electronic version of the brief as well. This may be useful if you need to include some details of this report into future Council reports or further reports to senior management etc.

6.10.8 Timing

It is important that Council detail clearly the anticipated timelines appropriate to the particular consultancy brief as this allows the consultants to be fully informed as to the expectations of Council.

6.10.9 Supporting Information

This is where Council provides additional information that is deemed important so that the consultants can prepare a full and detailed submission based on as many facts as possible. This may include copies of various Council plans, reports and policies etc.

6.10.10        Methodology / Approach

Council requires all consultants to detail the methodology and approach they will take to achieve the objectives of the brief. Ideally consultants should provide other reference sites where similar work has been completed with similar methodologies.

6.10.11        Agreement

This simply states whom the formal agreement will be between; generally directly between Council and the consultancy, however there may be occasions where the agreement is between several Councils and the consultancy etc.

6.10.12        Statement of Business Ethics

A mandatory requirement for inclusion in all consultancy briefs is reference to Council's Statement of Business Ethics. All consultants are to receive a copy of this document when they are sent the consultancy brief. All consultants will be required to sign a declaration that states that they have read and understand the content and meaning of the Statement of Business Ethics. The Statement outlines the ethical standards of behaviour that Council expects from Council Staff, plus all suppliers, contractors and consultants and gives instruction to both Council staff and consultants on how to report any breaches of this Statement of Business Ethics.

6.10.13        Payment and Fees

Council needs to state clearly how payment will be made under the ensuing consultancy agreement. Generally this will be by lump sum payments inclusive of all professional fees, related expenses and disbursements, often based on the achievement of set milestones. It is advised that for the protection of Council and of ratepayer funds, that payment should be linked to satisfactory completion of draft plans and milestones along the way; this protects Council from continuing to engage a consultancy that is not performing to the standard required for the project.

6.10.14        Insurances and GST

All consultants are required to have an Australian Business Number (ABN) and to be registered for GST. In addition to this, all consultants will be required to hold Professional Indemnity Insurance to the value of five (5) million dollars and Public Liability Insurance of between five (5) million and ten (10) million dollars. The successful consultants will be required to produce documentary evidence of such policies with the interests of Council suitably endorsed.

6.10.15        Selection Criteria

It is essential that all consultancy briefs include the criteria by which consultancies will be evaluated and selected for the job. The evaluation criteria may be different for each brief, but below are listed some of the most common criteria that can be used – these are examples only:


·           Price competitiveness;

·           Experience in similar projects;

·           Methodology proposed;

·           Timing and completion of the project;

·           Conformance with Council requirements, ie insurances, Statement of Business Ethics etc.

6.10.16        Submission Details

It needs to be clearly stated in the brief when submissions are due and where they are to be sent. For further details on acceptance of submissions and in particular the acceptance or otherwise of late submissions, please refer to Council's formal Tendering Policy, which documents the procedures and standards relating to acceptance of offers.

6.10.17        Ownership and Copyright

It needs to be clearly stated that ownership and copyright will be vested in Council at all times and that distribution of the report or study are only to occur with the written approval and authority of Council. Copyright shall remain with Council for all data supplied for the purpose of the consultancy.

6.10.18        Termination

The consultancy brief needs to clearly state how and when termination of the consultancy may occur. Generally termination would occur due to non-performance or the inability to meet set deadlines and all matters relating to the termination of a consultant needs to be in writing.


6.11   Consultancy Agreement


Once an evaluation panel has selected the successful consultant and the matter has been reported to Council (if over $150,000), a formal Consultancy Agreement should be entered into.


Generally, this formal agreement simply states the deliverables of the consultancy, plus the general terms of the engagement and is to be co-signed by Council and the successful consultancy. You must make reference in this formal agreement to the original submission and any subsequent communication between Council and the consultancy, this then means that the original submission forms the basis for the engagement of the consultant along with the formal agreement.


As an option to drafting your own formal consultancy agreement, Council Officers can access and utilise “Annexure A – General Conditions of Contract for Engagement of Consultants” from the Australian Standard – AS4122-2000. This document covers all the requirements for a formal Consultancy Agreement.


6.12   Legislation and Council Policies to be observed by Consultants


All consultants are to comply with relevant legislation and Council polices. Where relevant, the particular legislation or policy/policies should be highlighted in the project brief that is to be provided to the consultant. Examples of these documents are:


·           Council’s Statement of Business Ethics

·           Council’s Code of Conduct

·           Council’s Purchasing Policy

·           Council’s Tendering Policy

·           Relevant OH&S Legislation and Council policies

·           Council’s Environmental Policies

·           Staff and Consultant Access to Private Property Policy

·           Access to Private Property Procedure



Council Specification

Quotes shall be called based upon the requirements as detailed in Council’s quotation specification.


Submission of Quotations

At least seven (7) days notice is to be given for the supply of quotations, unless deemed urgent by the Department Director.


Quotations for goods and services may be forwarded by fax, email or in written form so as to reach the responsible officer by the closing time specified in the quotation specification.



For goods and services greater than $20,000 a formal assessment of quotations is to be undertaken having regard to the criteria identified in Section 5 Tenders. Consideration must also be given to WOL costs where a new asset is being created.


Acceptance of Quotations

Quotations are to be evaluated by the Council Officer responsible for the quotation.


A record of the quotations is to be recorded on the Council document management system (TRIM).


Successful and unsuccessful firms/persons submitting quotations are to be notified as soon as possible after acceptance. The issue of a Council Order will constitute acceptance of a quotation.



Council has access to a number of independent purchasing organisations. Use of these organisations meets Councils obligations under the Local Government Act 1993.


8.1     State Government Contract (Smartbuy)


The Department of Commerce has a range of pre approved contracts for a wide range of products and services. Council can avail itself of these contracts without going through the normal tendering procedures detailed previously. No tender evaluation is required although a comparison with other tenders (see 8.2 and 8.3 below) can be carried out.


Participation is optional.


8.2     Hunter Councils (Regional Procurement)


Hunter Councils organises tenders for members of the Mid North Coast Strategic Alliance-Purchasing.


Individual councils may opt in or out of each tender until such time as a tender is accepted. The tender evaluation is undertaken by a committee of members from the participating councils.


Once a tender has been accepted participation is mandatory.


8.3     Local Government Purchasing (LGP)


LGP has been created as a business venture under the auspices of the Local Government and Shire Association (LGSA). It is the only other accredited supplier (other than the Department of Commerce) that enables Council to purchase directly from pre approved contracts. No additional tender evaluation is required.


Participation is optional.


8.4     Strategic Purchasing (formally MAPS)


Similar to LGP and based on a system developed in Victoria.

9       ORDERING


Council utilises tear out style Purchase Requisition books. These books enable requisitions, general orders and confirmation orders to be made on the one type of document.


9.1     Requisitions, Requisitioning and Authorisation


A Purchase Requisition (PR) is a notice of intent for an order to be placed normally by purchasing staff. It is an internal document only.


A Purchase Requisition can also show whether or not the goods or services have been verbally ordered by ticking the confirmation question yes or no. If yes, the purchasing staff process the purchase requisition into the system. If no, the purchasing staff proceed to raise an official purchase order.


A Purchase Order is a notice of goods ordered and is an external document.


Official Order is Nambucca Shire Council’s Purchase Order.


A By Pass Requisition is a statement authorising miscellaneous purchases made without an Official Order.


The current purchase requisition form consists of two (2) parts, the original goes to the Finance Section and the duplicate is kept as a book copy.


It is imperative that a purchase requisition be correctly completed when members of staff incur expenditure on behalf of Council for goods and services, (except where stated otherwise in this document).


The purchase requisition is the "original" source document therefore it must contain all relevant information vital to assist purchasing staff to efficiently service the request.


9.2     Completion of a Purchase Requisition for General Purchases


Complete details of:


·           department ordering

·           supplier name, address, phone number and contact name

·           name of person requiring goods/service

·           date

·           preferred delivery date

·           quantities required

·           description of goods or services (attach any additional information necessary)

·           price or estimated cost you the requisitioner wish to spend

·           requisitioner’s signature

·           confirm fund allocation (job number)

·           obtain authorisation using correct responsible officers signature and code

·           forward purchasing requisition to Finance/Store

·           if Creditor does not exist forward a new Creditor request form (Appendix D) to the Creditors Clerk


9.3     Completion of a Purchase Requisition for Direct Orders (eg verbal confirmation orders)


Same procedures as above only add the following information:


·           tick yes for verbal confirmation

·           mark the requisition that the goods/service is received

·           forward book to Finance Section


NB: Any purchase requisition that is deficient in any of the above details will be returned to the requisitioner.


9.4     Authorities to Requisition Goods and Services


Who is a Requisitioning Officer?

A Requisitioning Officer shall mean any employee of the Council requisitioning or ordering goods and services for the purpose of carrying on the functions of Council.


Who is an Authorising Officer?

An Authorising Officer shall mean any employee of the Council with delegated authority to approve requisitions or orders which are a disbursement of Council expenditure.


9.5     Things to Remember


Placement of orders should be restricted to items relating to your particular department only. Where items are being funded from another department, the authority of that department must be obtained on the requisition.


It is the responsibility of the Finance Section to ensure that the authorisation on requisitions received complies with Council's "Schedule of Authorised Signatories covering Requisitions for Goods and Services".


A list of all delegated signatories and associated delegated authority for each Department/Section is available from the Finance Section.


NB: Requisitions that are signed by a non-authorised signatory will not be processed.


9.6     Delivery Address


The delivery address for all goods or services will be at either:


·           Works Depot (Stores Section), Gumma Road, Macksville NSW 2447

·           Office, 44 Princess Street, Macksville NSW 2447


Where goods or services are arranged at other locations (example stockpile, library etc) it should be clearly stated on the Purchase Requisition.


9.7     Miscellaneous Purchases


Miscellaneous purchases are goods or services such as:


·           telephone accounts

·           power accounts

·           land and water accounts

·           freight where not specified on PR

·           credit card payments

·           reimbursements

·           labour hire

·           contributions from Council


It is recommended that these types of requests be treated differently to the procedures detailed previously. Due to the fact that these requests are of an uncertain or infrequent type encountered by the organisation, payment is not handled by the computerised order system.


Any goods or services required by an individual within the Organisation which are not detailed above should be the subject of a PR.


Invoices in respect to the Miscellaneous Purchases, must be accompanied by a By-Pass requisition. These requisitions are available from the Senior Creditors Clerk and must be completed by the Authorising Officer responsible for the expenditure against respective job numbers. As with a normal P.R. form the By-Pass requisition must be completed correctly and once this has been done it will be processed by the Senior Creditors Clerk for payment. All requests for payment MUST have sufficient support documentation to enable payment.

9.8     Purchasing of Materials Already Kept as Inventory


Authorising officers must make every effort to use goods kept as inventory before committing expenditure to outside sources for similar or identical goods.


To identify what is kept as inventory, please contact the storekeeper who can advise on quantities and pricing information.


9.9     Outstanding Order Reports


These reports highlight to each individual authorising goods or services that have been ordered and are still outstanding within Council's On-Line Orders system.


These reports are distributed regularly and must be actioned immediately by ticking or crossing in the schedule provided on the report whether or not the order is still current, partly completed, totally completed, or has to be deleted. These reports are to be forwarded to the Finance Section for processing.


Where authorising officers know whether goods or services are received prior to the outstanding order reports being issued, they should inform the Stores or Finance Section immediately so that the payment process is started.


9.10   Returning of Goods to Suppliers:


Due to:


·           incorrectly supplied;

·           damaged;

·           oversupplied, etc.


The procedure to follow for the above will be:


·           Stores Section is notified immediately if the goods have to be returned by the Authorising Officer or the requisitioner, quoting order number, supplier if known, type of goods, quantity, reason for their return, where the goods may be collected and if replacement goods are needed.

·           Stores will make out relevant paper work and advise the supplier of the pending return of goods at the same time requesting that the correct goods be supplied.

·           Stores will send a copy of the Advice Note document to (a) the supplier and (b) the Finance Section advising both parties of the return of goods and subsequent credits etc to be arranged relating to the purchase order.


9.11   Cancellation of Purchase Orders


Where any purchase orders need to be cancelled for what ever reason the procedure is as follows:


Finance Section is notified immediately by the requisitioner or Authorising Officer that an order is to be cancelled, quoting order number, supplier and the goods/services that are required to be cancelled.


The requisitioner is to contact the supplier both verbally and by official letter stating the reasons for cancellation.


Finance Section will arrange to delete the computerised order from the on line order system and have all relevant documentation marked accordingly.



The following procedure must be adopted to provide a consistent payment process within the Organisation :


10.1   Payment of all invoices/accounts will be made within 30 days of statement


Currently payments take place on Thursdays, either by EFT or cheque. The closing time for each weeks payment cycle is 12.00 noon on the preceding Wednesday. Therefore all paperwork is required to be signed, authorised and completed and in the accounts payable department by this time to ensure that it can be processed the following day. It is the responsibility of the person requesting payment that all paperwork be completed as required and authorised by the appropriate member of staff. If payment cannot be made on the Thursday as requested, it will be made on Thursday of the following week.


If payment is being made to a new supplier, then it is the responsibility of the initiating officer to provide all the relevant details required for accounts payable to create a new supplier record in the system. These details include, supplier name; supplier address; contract name and details; and most importantly their ABN. In all circumstances council officers must endeavour to use suppliers who have an Australian Business Number (ABN) and have advised bank details and an email address for payment notification..


The New Creditor Request form is provided as Appendix D.


10.2   General


No orders are to be placed with suppliers without an official purchase order being supplied by council first. All suppliers are instructed not to supply goods unless they make reference to an official Nambucca Shire Council purchase order number. If a supplier supplies goods without a purchase order number, and produces an invoice to council without reference to an official purchase order number, then council reserves the right to refuse payment for those goods or services.


Under no circumstances are requisition numbers to be substituted or used as official purchase orders.


Payment outside of these guidelines will be processed ONLY at the discretion of the Senior Creditors Clerk. Under no circumstances are payment commitments to be made by staff of this Organisation to any outside agency or individual without the express prior knowledge and agreement of the Senior Creditors Clerk.


Payments will not be processed which have not been the subject of a computerised order and authorised purchase requisition, except generally in the circumstances outlined in the section -above titled Miscellaneous Purchases, including items such as power, water, telephone, sustenance, freight, legal opinions, donations, reimbursement and Councillors.


Items such as conference fees, travelling, accommodation, training costs, course fees and the like are to be the subject of a purchase requisition and must be completed and authorised in advance of the time and date payment is required.


Requests for payment of accounts before Council receives any benefit from that payment should be kept to an absolute minimum when dealing with non-governmental organisations, eg. conference registration, licences, fees etc. The Authorising Officer should be satisfied that the payment being made is to a reputable company and that there is no likelihood of Council not receiving benefit of the payment. The Authorising Officer shall be responsible to ensure that the benefit of the payment is received.


Any variations exceeding $100 or are greater than 5% between estimated or quoted prices on Purchase Requisitions and the invoiced prices on statements/invoices will be investigated, negotiated and examined by the Finance Section and referred to the authorising officer to ensure that suppliers commitments in respect to quoted prices, fixed prices and discounts for this Organisation are met, and similarly to ensure that committed costs within the financial and costing systems are realistic.


Progress payments of all major contracts shall be entered into Council’s contract register. A copy of the contract (or extract) shall be recorded in the contracts register. Where an agreement to pay by progress payments is made it shall be made in writing and a copy forwarded to Finance for recording in the contracts register.


10.3   Purchase Order/Invoice Price Adjustments


In the event that the price on a purchase order does not match the price on the invoice the following procedure will apply.


If the difference per line item is $100 or less or within 5% the adjustment will reflect the invoice price. The Accounts Payable Section has authority to adjust prices up to $100 per line item, or by amounts within 5% of the line item value.


If the difference is greater than 5% or $100 the order and invoice are both referred to the relevant Authorising Officer.


The buyer concerned will investigate the variation and either adjust the order to match the invoice and initial the change or reject the variation and request the Accounts Payable Section to pay the invoice as per the order price.


If the invoice shows an item not appearing on the order, the order and invoice are both referred to the Authorising Officer.



Goods or materials that are found to be obsolete or surplus to Council’s requirements may be disposed of in the following manner:


Goods with an expected value of less than $1000 may be disposed of in the most appropriate manner with the authorisation of the General Manager. Goods may be disposed of by means of quotation, or auction


Goods with an expected value greater than $1000 may be disposed of by either a trade-in, public auction or by tenders advertised in a newspaper circulating in the local area with a minimum of twenty-one (21) days from the advertisement to the closing of tenders.


Council staff and their immediate family, residing at the employees place of residence, are prohibited from purchasing any surplus council goods or materials.



·           Code of Conduct

·           List of Delegations

·           Policy - Procurement of Goods and Services

·           Policy - Council Purchasing Cards

·           Local Government (General) Regulation 2005

·           Local Government Act 1993

·           Freedom of Information Act 1989

·           Privacy and Personal Information Protection Act 1998

·           Trade Practices Act 1974

·           State Records Act 1998

·           Occupational Health and Safety Act 2000



Works Inspection Committee - 15 October 2008

Procurement Policies and Procedures - Resubmitted

Attachment 3

3569/2008 - DRAFT - Procurement Procedures Manual




Tender Evaluation Sample Form


Tenders will be evaluated using a weighted score analysis. Example Weighting Criteria and Weightings for a major plant item are as follows:


Weighted Criteria

















Tendered price offer (WOL)










Operational requirements










Mechanical assessment










Warranty Service and parts






























Local Preference










Total Score









Score %






To obtain the percentage score divide the total score by 5  Score %=(W x S) ¸ 5

The Weighting Score (S) will be determined by allocating points on a scale of 1 to 5 with 1 the lowest score and 5 the best score. Assessment items for each criteria are as follows:


Tendered Price (WOL)



NPV Factor

(A) $




Tendered price





Trade in





Nett Change over





Annual costs          (1)




































Total Annual Cost $






Total Expenditure $






Score out of 5







NPV = Net Present Value and is used to calculate the “time value of money” ie a dollar today is worth less next year and even less the year after. NPV factors in this example are based on an opportunity cost of 6.5%.


The assessment will be based on a 6 year machine life. The score out of 5 will be calculated as (the lowest Whole of Life (WOL) cost ¸ each suppliers WOL cost) x 5.


Operational Assessment








Entry and exit (Occupational Health and Safety)






Seating position and controls






Turning Circle






Noise in the cabin






Daily service points












Operating Warning System






Total Score


Maximum Score is 35 ie 7 items assessed x 5

Score out of 5

= 5/35

= 0.71


Mechanical Assessment














Brake type






Hydraulic system






Blade Circle Operation












Gross Weight






Access for routine service






Total Score


Maximum Score is 35 ie 7 items assessed x 5

Score out of 5


= 2.14


Warranty, Service and Support Assessment








Length of warranty






Costs of extended warranty






Parts support local






Service support local






Contract maintenance offer






After hours call out






Total Score


Maximum Score is 30 ie 6 items assessed x 5

Score out of 5


= 2.67


Environmental Assessment








Total CO2 output






Environmental Assessment of Supplier






Oil change intervals






Particulate Matter PM10






Total Hydrocarbons THC






Oxides of Nitrogen Nox






Use parts made from recycled material






Use plastics that are suitable recycling






Total Score


Max Assessment = 40

Score out of 5




Assessment allocated on a 1-5 basis where 1 is non compliant and 5 is high compliance.










Testimonial 1


















Total Score


Maximum Score = No of testimonials x 5

Score out of 5


= 0


Local Preference




Manufactured in Nambucca Shire Council Area



Manufactured in NSW, Distributed in Nambucca Shire



Manufactured in NSW, Distributed in NSW



Manufactured in Australia, Distributed in Nambucca Shire



All other options



Works Inspection Committee - 15 October 2008

Procurement Policies and Procedures - Resubmitted

Attachment 3

3569/2008 - DRAFT - Procurement Procedures Manual


14       APPENDIX B - Whole of Life Costing - New Earthmoving Equipment/Plant







900 hrs








Fleet Value



Fixed Costs



Depot Commercial Value





Fixed Dep x Machine Value

Depot Administration Cost



Opportunity Costs


Opp % x 50% Machine Value

Machine Value excl GST



Vehicle Registration



Machine Life - years






Anticipated Machine Usage hrs/annum





10% x (Machine Cost/Fleet Value) x Depot Commercial Value

Fuel Consumption litre/hr





(Machine Cost/Fleet Value) x Depot Admin Cost

Fuel Price $/litre



Total Fixed Costs



Annual Ave Maintenance over ? Years






Tyres Cost



Variable Costs



Tyres to be Replaced every ? hours






Number of Tyres on Machine





(Purchase Cost - Anticipated Trade Value)/Machine Life

Oil Capacity litres






Oil Change Frequency hrs






Oil Consumption litres/1000hrs



Repairs and Maintenance



Oil Price $/litre



Risk Allowance



Fixed Depreciation



Total Variable Costs



Resale Value at 6 Years






Opportunity Costs



Annual Costs



Risk Allowance - 54.62%









Fixed Costs


Highest of Fixed and Variable




Variable Costs


Excl Fixed Depreciation




Total Annual Costs


Excl Variable Depreciation










Charge Out Rate








Replacement Reserve








Operational Cost Recovery








Total Hire











Works Inspection Committee - 15 October 2008

Procurement Policies and Procedures - Resubmitted

Attachment 3

3569/2008 - DRAFT - Procurement Procedures Manual




Works Inspection Committee - 15 October 2008

Procurement Policies and Procedures - Resubmitted

Attachment 3

3569/2008 - DRAFT - Procurement Procedures Manual





NAME:  _____________________________________________________________________


ADDRESS: __________________________________________________________________









ABN NO:   _______________________________________________________


PHONE:    _______________________________________________________


FAX:       _______________________________________________________


EMAIL:    ________________________________________________________





BSB:  _ _ _ - _ _ _    ACCOUNT NO:  ________________________________


ACCOUNT NAME:  __________________________________________________





ADDRESS:  _________________________________________________________________






PHONE NO: _________________________   FAX NO: ______________________


MOBILE NO: ________________________  CONTACT: _____________________


EMAIL ADDRESS: _____________________________________________________



REQUESTED BY:  _____________________________________________________



Works Inspection Committee

15 October 2008

Director of Engineering Services Report

ITEM 12.1    SF1064            151008         Councillors Induction - Tour of Facilities


AUTHOR/ENQUIRIES:     Bruce Redman, Director Engineering Services         




The last phase of the Councillor Induction process is an inspection of some of Council’s key facilities.


During the morning of Wednesday 15 October 2008 the following sites will be visited:


·              Water Supply Borefield

·              Site of proposed Off-Stream Water Storage

·              Nambucca Heads Sewerage Treatment Plant

·              Nambucca Heads Library

·              Council Works Depot.





That the inspection of facilities be noted.






No relevant options.





Five key sites were selected for inspection based on providing an overview of the broad range of Council responsibilities and those where considerable expenditure will occur over the next few years.