9.3 Works Reports - Shire of York · 2017-03-28 · MINUTES – ORDINARY COUNCIL MEETING 20 DECEMBER, 2010 3 9. OFFICER’S REPORTS 9.3 WORKS REPORTS 9.3.1 Road Seal Tenders 10/11

9.3 Works Reports

MINUTES – ORDINARY COUNCIL MEETING 20 DECEMBER, 2010 2


9. OFFICER’S REPORTS9.3 WORKS REPORTS9.3.1 Road Seal Tenders 10/11

FILE NO: AS.TEN.25COUNCIL DATE: 20 December 2010REPORT DATE: 13 December 2010LOCATION/ADDRESS: Whole of ShireAPPLICANT: TenderersSENIOR OFFICER: Ray Hooper CEOREPORTING OFFICER: Mike Gill / Geoff CrossingDISCLOSURE OF INTEREST: NilAPPENDICES: NilDOCUMENTS TABLED: Nil

Summary:Council undertakes programmed sealing of roads across the municipality and requires sealingservices from a qualified contractor to complete these works. To this end, Council called fortenders in November 2010. This report summarises the tender submissions and recommendsone contractor to be engaged for road sealing works.

Background:The previous road sealing contract expired in mid 2010. The tender process for the currentcontract commenced in November 2010 and tenders closed on 6th December 2010.

Tenders were received from: Bitumen Surfacing Boral Asphalt (WA) Fulton Hogan (Pioneer) RNR Contracting

All tenders were considered to have satisfied the following qualitative criteria as specified in thetender:

Relevant experience Key Personnel skills and experience Tenderer’s resources Demonstrated understanding of the requirements of the contract.

Prices submitted by the tenderers were:

BitumenSurfacing

Boral FultonHogan

RNR

Primer coat costper litre incl. aggr.

3.00 2.68 3.02 2.90 – 5.40 *

Final seal cost perlitre incl. aggr.

3.25 3.22 2.85 3.35

Total estimatedcontract cost

338,125 325,650 308,965 365,505 *

RNR costs vary on Primer seals depending on quantity of works done, more work/jobs done atone time - lower cost but a small job is higher cost.


All the above tenderer costs include the supply of aggregate.

Considering the variety of tenders submitted it is recommended that Fulton Hogan be awardedthe Sealing Tender for 2010/11 as they appear to provide best value to Council. They havesubmitted the lowest price.

Consultation:The tender was advertised in the West Australian in accordance with the requirements of theLocal Government Act 1995.

Statutory Environment:Local Government Act 1995Local Government (Functions and General) Regulations 1996

Policy Implications:Nil

Financial Implications:Sealing costs are included within works estimates for Councils 2010/11 budget.

Shire of York to provide traffic management as per tender document.

Strategic Implications:Nil

Voting Requirements:Absolute Majority Required: Yes

Site Inspection:Site Inspection Undertaken: Not applicable

Triple bottom Line Assessment:Economic Implications:Road sealing and resealing are part of the capital investment and asset management to enablethe Shire of York to provide economic benefit through a functional transport network.

Social Implications:Safer and better driving conditions improve transport access across the community.

Environmental Implications:All sealing works are undertaken in accordance with relevant environmental controls.

Comment:The recommended tenderer seems to have a satisfactory standard.

RESOLUTION181210

Moved: Cr Lawrance Seconded: Cr Hooper

“That Council:

Accepts the tender from “Fulton Hogan” to meet the specifications of ‘Tender 1-10/11Supply, Spray and Cover (including aggregate) at an estimated total cost of $308,965subject to negotiations on areas to be sealed”

CARRIED: 5/0


9.4 Finance Reports



9. OFFICER’S REPORTS9.4 FINANCE REPORTS9.4.1 Monthly Financial Reports – November 2010

FILE NO: FI.FRPCOUNCIL DATE: 20 December 2010REPORT DATE: 2 December 2010LOCATION/ADDRESS: Not ApplicableAPPLICANT: Not ApplicableSENIOR OFFICER: Ray Hooper, CEOREPORTING OFFICER: Tabitha Bateman, Administration OfficerDISCLOSURE OF INTEREST: NilAPPENDICES: Yes – Appendix A as detailed in SummaryDOCUMENTS TABLED: No

Summary:The Financial Report for the period ending 30 November 2010 is hereby presented for theconsideration of the Council.

Appendix A includes the following: Bank Account Reconciliations Cheque drawings on the Municipal Account EFT drawings on the Municipal Account Cheque drawings on the Trust Account Reserve Accounts Balances Summary Payroll Direct Debits Summary Corporate Credit Card Summary Fuel Card Summary

Consultation:Nil.

Statutory Environment:Local Government Act 1995 (As Amended).Local Government (Financial Management) Regulations 1996 (As Amended).

Policy Implications:Nil.

Financial Implications:The following information provides balances for key financial areas for the Shire of York’sfinancial position as at 30 November 2010;

Sundry Creditors as per General Ledger $ 846.92Sundry Debtors as per General Ledger $ 451,301.76Unpaid rates and services current year (paid in advance inc. ESL) $ 1,423,276.55Unpaid rates and services previous years (inc. ESL) $ 292,238.27


Voting Requirements:Absolute Majority Required: No



Triple bottom Line Assessment:Economic Implications:A zero balance or surplus end of year financial position will increase community confidence andcohesion and provide an opportunity for improved community benefits in future years.

Social Implications:Not applicable.

Environmental Implications:Not applicable.

RESOLUTION191210

Moved: Cr Scott Seconded: Cr Lawrance

“That Council:

Receive the Monthly Financial Report for November and ratify payments drawnfrom the Municipal and Trust accounts for the period ending 30 November 2010:

VOUCHER AMOUNTMUNICIPAL FUNDCheque Payments 29161-29227 $ 93,487.06Electronic Funds Payments 7375-7517 $ 360,347.61Direct Debits Payroll $ 154,418.75Bank Fees $ 3,117.58Corporate Cards $ 2,208.51Shell Cards $ 449.20TOTAL $ 614,028.71

TRUST FUNDCheque Payments 3749-3768 $ 16,443.67Direct Debits Licensing $ 127,838.65TOTAL $ 144,282.32

TOTAL DISBURSEMENTS $ 758,311.03”

CARRIED: 5/0

Note to this itemThe Chief Executive Officer has delegated authority under Delegation DE1 (Council Meeting21 September 2009) to make payments from the Municipal and Trust accounts.


9.4.1APPENDIX A

























9. OFFICER’S REPORTS9.4 FINANCE REPORTS9.4.2 Meet With Auditors - Annually

FILE: FI.FRP.4COMMITTEE DATE: 24 November 2010COUNCIL DATE: 20 December 2010REPORT DATE: 29 October 2010LOCATION/ADDRESS: N/AREPORTING OFFICER: Tyhscha Cochrane, Acting DCEOSENIOR OFFICER: Ray Hooper, CEODISCLOSURE OF INTEREST: NoAPPENDICES: Appendix A – Fee ScheduleDOCUMENTS TABLED: Nil

Summary:Pursuant to Section 7.12A(2) there is a requirement that the Auditor meets with the LocalGovernment once in every year.

This provision was a requirement listed in the Audit Specifications and confirmed in the proposalreceived from Council’s Auditors, Macri Partners.

Accordingly the Auditor has been invited to meet with the Committee Members.

Background:Terry Tan from Macri Partners advised that he accepted the invitation to attend the AuditCommittee on the 24th November 2010.

Consultation:Ray Hooper - Chief Executive OfficerTerry Tan - Macri PartnersFrancis Mammone – City of Canning

Statutory Environment:Local Government Act 1995 (as amended)Financial Management Regulations 1996

Policy Implications:Nil.

Financial Implications:Nil at this time. For future attendance at the Audit Committee a fee schedule is attached andlabeled Appendix A.

Strategic Implications:Nil.



Triple bottom Line Assessment:Economic Implications:Nil


Social Implications:Nil

Environmental Implications:Nil

Comment:That this report be received.

RESOLUTION201210

Moved: Cr Lawrance Seconded: Cr Scott

“That it be noted that the Shires Auditor Macri Partners attended the Audit Committeemeeting held on the 24th November 2010 to meet statutory requirements.”

AUDIT COMMITTEE RECOMMENDATION TO COUNCIL:

“That it be noted that the Shires Auditor Macri Partners attended the Audit Committeemeeting held on the 24th November 2010 to meet statutory requirements.”

CARRIED: 5/0

Councillors wish to pass on a vote of thanks to Frances at the City of Canning.


ITEM 9.4.2APPENDIX A



9. OFFICER’S REPORTS9.4 FINANCE REPORTS9.4.3 Interim Audit

FILE: FI.FRP.4COMMITTEE DATE: 24 November 2010COUNCIL DATE: 20 December 2010REPORT DATE: 29 October 2010LOCATION/ADDRESS: N/AAPPLICANT: N/ASENIOR OFFICER: Ray Hooper CEOREPORTING OFFICER: Tyhscha Cochrane, A/DCEODISCLOSURE OF INTEREST: NilAPPENDICES: A - Interim Audit ReportDOCUMENTS TABLED: Investment Policy and Operational Guidelines

Summary:Council’s auditors Macri Partners completed an interim audit of the Shire’s accounts for the2009/10 financial year earlier this year and provided an interim report. As part of the processthey sought staff comment to their findings and presented a letter that includes theirfindings/recommendations and the staff response. This report deals with that letter and providesrecommendations in response to the auditors’ comments.

Background:The Local Government Act and Regulations provide for the accounts and annual financial reportto be audited each year. As part of the process it is usual for the auditors to conduct an interimaudit in which they examine the accounts, checking transactions and the Council’s financialprocesses to ensure they are in accordance with accounting standards, local governmentregulations and reflect good practice to minimise the risk of inappropriate or illegal practicesoccurring.

The interim report provides the opportunity for changes to be implemented or explanation givenprior to the final audit taking place. With the final audit the Auditor will give an audit reportoutlining the scope of the audit and an opinion as to the validity of the accounts and whetherthey comply with accounting requirements and organisations as well as a management letteroutlining any unresolved issues, concerns or improvements that can be made. Copies of theAuditor’s management letter and the detail of any actions taken in response are forwarded tothe Department.

Consultation:Macri Partners

Statutory Environment:Local Government Act 1995, Local Government (Financial Management) Regulations 1996,Local Government (Audit) Regulations 1996.


Financial Implications:Nil





Triple bottom Line Assessment:Economic Implications:Not Applicable

Social Implications:Not Applicable

Environmental Implications:Not Applicable

Comment:From the Auditor’s interim report a number of the matters raised were minor procedural mattersthat have been addressed by changing the procedures and practices to comply with theAuditor’s suggestions.

Items warranting further comment include:

Investment of Funds;Development of Policies – Back-up Facilities, Authority for changes and responsibilities,Password Security, Contingency and disaster recovery plan and IT equipment purchases.

In regards to the investment of funds the following was recommended by Macri Partners:

“Even though your current policy states you can have a maximum of 100% in a AAAinstitution it doesn’t state anything in regards to maximum direct investment, basicallymeaning what’s the maximum the Shire can place with one bank. I have attached the WALocal Government’s Investment Guidelines and you will see on pg15 that the suggestedmaximum is 45%. This is a good policy to have as it diversifies your portfolio andreduces your risk.” Please note that the Investment Guidelines are tabled.


RESOLUTION211210


“That:

(i) the Audit Committee receives the interim audit report; and

(ii) Requests the Deputy CEO to prepare suitable policies and to amend the Policyregarding Investment of Council’s funds with the aim of presentingrecommended policies and amendments to the Ordinary Council to be held inFebruary 2011.”

AUDIT COMMITTEE RECOMMENDATION TO COUNCIL:

“That:

(i) the Audit Committee receives the interim audit report; and

(ii) Requests the Deputy CEO to prepare suitable policies and to amend the Policyregarding Investment of Council’s funds with the aim of presenting recommendedpolicies and amendments to the Ordinary Council to be held in February 2011.”

Notes:

Disaster Recovery Plan to be considered by Council as an individual or a regionalproject.

All measurement ratios are within the recommended ranges.

Asset registers to be fully updated as part of the Asset Management Planning.

Infrastructure assets to be divided into individual locations e.g. parks to be usedseparately.”

CARRIED: 5/0



We carried out an interim audit of the Council for the year ended 30 June 2010.

Our interim audit covered a review of the accounting and internal control procedures in

operation, as well as testing of transactions, in the following areas:

Purchases

Payments and Creditors

Rate Receipts and Rate Debtors

Receipts and Sundry Debtors

Payroll

General Accounting and Computer Environment

Registers (Tender Register and Register of Financial Interests)

Our review also covered an examination of some compliance matters, which are required under

the Local Government Act 1995 (as amended) and Financial Management Regulations 1996.

Please note that our examination of internal controls was carried out for audit purposes

designed primarily for the purpose of expressing an opinion on the financial statements of the

Shire of York.

The following matters were noted and are brought to your attention.

PURCHASING AND PAYMENTS

As part of our audit, we carried out a review of the purchasing and payments system. Our audit

procedures have been designed to determine appropriate means for selecting items for testing

so as to gather sufficient appropriate audit evidence to meet the objectives of the audit

procedures. Our audit procedures have been designed to also determine whether purchases of

goods/services were in accordance with Council’s purchasing policy.

Generally the controls surrounding purchases, creditors and payments are appropriate to meet

the Council’s requirements.

However, the following matter was noted as requiring attention:

(i) In a number of instances, purchase orders did not contain quantity or price for purchase ofgoods/services.

As auditors, we are concerned about the legal liability to the Shire should any disputearise over a supply of goods/services.

ITEM 9.4.3APPENDIX A


We recommend that purchase orders with all the details should be forwarded to the suppliers to

confirm the contractual obligation between the Council and suppliers to supply goods/services at

the agreed quantity, quoted price, etc and to avoid future disputes due to misunderstanding of

supply details.

This was reported in our previous management letter dated 14 December 2009.

Management Comments:

This matter was raised at the staff meeting held on 18 May 2010 and discussed. Whenplacing an order, at least two phone quotes are required for purchases up to $1,000 andthree written quotes for purchases from $1001 - $99,999. The phone quotes are to bewritten down on a form (available from admin office) and to be placed with the order. Ifthe supplier is on the WALGA preferred list, it should be noted on the order and youwon’t need to go through the process. Depending on the value the process will change.

(ii) There was a number of instances noted where quotation details were not filed with theinvoice, purchase order and payment voucher.

We recommend that details of verbal and written quotations be filed with the invoice, purchaseorder and payment voucher.

This matter was also reported in our previous management letter dated 14 December 2009.


Will be implemented.

RECEIPTS

(i) We reviewed the daily “Cash receipting bank deposit listing” reports, daily “Muni and Trust

listing” reports and “Daily balance sheet” reports prepared by the Customer Service Officers.

The Customer Service Officers sign off these reports to ensure that the totals are balanced.

However, we noted the reports are not reviewed by an independent senior officer to ensure

that the process has been properly performed.

We recommend a senior officer independent of the cashiering function reviews and initials thereport as evidence of the review.


Changes to be implemented.

(ii) Cancelled/voided receipts are also listed in the daily “Cash receipting bank deposit listing”reports. However, there is no evidence of a review by a senior officer independent ofcashiering function. Cancelled receipts can be used to cover up misappropriation or cashdiscrepancies.

We recommend that all daily “Cash receipting bank deposit listing” reports be reviewed andinitialled by a senior officer independent of cashiering function to indicate that these reports areaccurate and all cancelled receipts have been appropriately authorised.



Changes to be implemented.

(iii) At the time of the visit we observed that daily cash and cheques received were kept in acash box and stored in the records room. However the records room is accessible to all staffmembers during the day. This lack of security may lead to opportunities for misappropriationof cash.

We recommend that a separate secure safe be used with access limited to authorisedpersonnel only.


Noted and management will address this issue.

PAYROLL

We examined the payroll system of the council. In general the system in place appears to beoperating satisfactorily.

However, we noted an instance where a staff member staff had been under paid since his lastpay review on the 27th August 2007 to the date of our audit visit.


Not approved by the CEO due to performance issues. These are still being resolved.

INVESTMENT OF FUNDS

We conducted a review of the investment of funds by the Shire of York at the time of our audit

visit.

An investment policy exists, which provides general guidelines as to the levels of risk and

exposure for the various types of investments that can be placed. Our review of the Council’s

policy indicates that the policy has been prepared to ensure that all investments are made in

accordance with:

Local Government Act 1995 - Section 6.14; The Trustees Act 1962 – Part III Investments; Local Government (Financial Management) Regulations 1996 – Regulation 19, 28 and

49 Australian Accounting Standards.

The Council manages its own investments. All investments placed appears to be appropriately

documented, authorised and correctly recorded in the Council’s Investment Register.

The following matter was noted and is brought to your attention.

The current investment policy of the Council is silence on the maximum surplus funds it can

invest with any one institution at a time.


The Council may wish to consider adopting the Department of Local Government Investment

Guidelines limit of 45% as the maximum level of funds that can be invested with any one

financial institution at a time. This will ensure a diversified portfolio and spread the risk cross a

number of financial institutions.


Note audit comments. Management will address this issue and if required changes to the

present policy will be presented to the Council for approval.

COMPUTER ENVIRONMENT

We discussed with the staff about the general controls operating at Shire of York. Generally, the

controls appear to be satisfactory.

The following matters were noted during our review:

(i) We noted that the Council does not have a formal IT Policy and Procedure in place. We

recommend that formal written procedures addressing the responsibilities, system

security and efficient utilisation of IT equipment (software and hardware) by the

organisation be concluded.

We believe the procedures and policies, among other things, should address the

following issues:

Back-up facilities

Authority for changes and responsibilities Password security Contingency and disaster recovery plan IT equipment purchases

(ii) Shire of York does not have a documented and tested disaster recovery plan to provide

continuity of data processing operations in the event of a major disaster or business

disruption.

We recommend that the Council develop a disaster recovery plan and the plan be tested

periodically and updated as changes occur.


For (i) & (ii) above –

Management will consider developing policies in these areas.

We thank your staff for the assistance provided during the audit. Should you have any queries

with respect to the above or any other matters please do not hesitate to contact our office.


9. OFFICER’S REPORTS9.4 FINANCE REPORTS9.4.4 Netball Courts Tender 04-1011

FILE NO: AS.TEN.24COUNCIL DATE: 20 December 2010REPORT DATE: 14 December 2010LOCATION/ADDRESS: Forrest Oval Sports PrecinctAPPLICANT: TenderersSENIOR OFFICER: Ray Hooper CEOREPORTING OFFICER: Gail MaziukDISCLOSURE OF INTEREST: Cr Walters - ProximityAPPENDICES: NilDOCUMENTS TABLED: Nil

Summary:Tenders were called for the design and construction of 3 acrylic surface netball courts includingline marking, netball posts and rings Tenders were also requested for laying electrical cablingfor lights to be installed in the future. Tender period opened on 24 November 2010 and closedon 8 December 2010.

Background:The design and construction of 3 netball courts with cabling for future lights forms part of stage 2of the redevelopment of Forrest Oval Sports Precinct. A total of 5 tenders were received forconsideration.

Tenders were received from the following companies: Hutch Contracting - Netball Courts only Morley Electrical - Cabling only West Coast Synthetic Surfaces - Netball Courts only Tiger Turf – Netball Courts only Sports Surfaces – Netball Courts and Cabling

All tenders were conforming and satisfied the qualitative criteria as specified in the tenderdocument

Relevant experience Key Personnel skills and experience Resources Demonstrated understanding of the requirements of the contract

Prices submitted by tender were:

Hutch Contracting - Courts only $ 126,665.00Morley Electrical - Cabling only $ 22,120.00West Coast Synthetic Surfaces – Courts only $ 121,080.00Tiger Turf - Courts only $ 126,870.00Sports Surfaces - Courts $ 125,285.00Sports Surfaces - Cabling $ 22,120.00

Consultation:Consultation with several sport surface suppliers has been undertaken since the inception of theproject. Consultation has also been ongoing with Netball WA, the governing body for Netball, toensure all standards for construction would be satisfied.


The tender was advertised in the West Australian newspaper in accordance with therequirements of the Local Government Act 1995

Statutory Environment:Local Government Tender Regulations


Financial Implications:Budget provisions have been made in 2010/11 to meet construction costs incurred in thisfinancial year. This is supported by a grant from CSRFF totalling $47,154

Strategic Implications:Key Result Area –To enhance sport and recreational opportunities for all Shire of Yorkresidents, particularly young people

Voting Requirements:Absolute Majority Required: Yes


Triple bottom Line Assessment:Economic Implications:The greatly improved facility will enable a significant increase in competitive and social netball inYork, it will also assist in attracting regional and other competitions and carnivals as well as theopportunity to attract a high standard of coaching and development clinics to York.

Social Implications:The competition standard facility will benefit the community through ease of access andproviding a community focal point. The YDHS and local netball clubs will gain significant benefitwith the addition of one extra court, enabling expansion of existing competitions and introductionof new competitions.

Environmental Implications:Drainage and other environmental issues will be dealt with in the construction process.

Comment:This project will meet a community need identified over a number of years by providing highquality shared facilities for the benefit of community members and sporting groups.


Cr Walters declared an Interest Affecting Impartiality to this item and left the room at 4.03pm

RESOLUTION221210


“That Council:

1. Accept the tender of Tiger Turf for the design and construction of 3 acrylic surfacenetball courts to be located at the Forrest Oval Sports Precinct York for the contractamount of $126,870.00 exclusive of GST.

2. Accept the tender of Morley Electrical for the design and laying of cabling for futurelights on the netball courts for the contract amount of $22,120.00exclusive of GST.

Giving a net tender price of $ 148,990.00 exclusive of GST.

3. Authorise the Chief Executive Officer to enter into contract agreements with thesuccessful tenderers for the design and construction of 3 netball courts and cablingfor future lights at the Forrest Oval Sports Precinct.”

CARRIED: 4/0

Cr Walters returned to the room at 4.04pm.



9.5 Confidential Reports

9.5.1 Australia Day Awards

RESOLUTION231210

Moved: Cr Randell Seconded: Cr Scott

“That Council:

Go ‘Into Committee’ to consider the Confidential Report at 4.15pm”.

CARRIED: 5/0

RESOLUTION241210

Moved: Cr Randell Seconded: Cr Scott

“That Council:

(1) receive the Notes from the York Honours Reference for the Meeting held on the13th December, 2010;

(2) endorse the recommendations from the York Honours Reference Group for theJunior Sports Star of the Year Award and the Senior Sports Star of the YearAward, for the Year 2010;

(3) endorse the recommendations from the York Honours Reference Group for theUnder 25 Citizen of the Year Award; Community Group or Event Award and SeniorCitizen of the Year Award;

CARRIED: 5/0

RESOLUTION251210

Moved: Cr Scott Seconded: Cr Randell

“That Council:

Come ‘Out of Committee’ at 4.17pm”.CARRIED: 5/0



9.6 Late Reports



10. NEXT MEETING

RESOLUTION261210


“That Council:

hold the next Ordinary Meeting of the Council on February 21, 2011 at 3.00pm inthe Lesser Hall, York”

CARRIED: 5/0

11. CLOSURE

Cr Hooper thanked all for their attendance and declared the meeting closed at 4.17pm.

Documents

9.3 Works Reports - Shire of York · 2017-03-28 · MINUTES – ORDINARY COUNCIL MEETING 20 DECEMBER, 2010 3 9. OFFICER’S REPORTS 9.3 WORKS REPORTS 9.3.1 Road Seal Tenders 10/11