144 ORDINARY MEETING 9 26 SEPTEMBER 2018 CHIEF EXECUTIVE OFFICER'S STRATEGIC MONTHLY REPORT John Andrejic | 1/3/37 | #4439510v47 RECOMMENDATION: 1. That Council notes the report. 2. That delegated authority be given to the CEO to approve applications for incoming minor grant rounds capped at $50K per application with subsequent reporting to Council of the application details and results. EXECUTIVE SUMMARY: The report for this period continues to highlight that Council has performed very well and reflects a commitment from the executive and the staff to deliver on the range of matters outlined in Council’s Corporate Plan and the 2018/19 Budget. REPORT 1CURRENT SIGNIFICANT ISSUES EBA The Single Bargaining Unit (SBU) comprising of management and nine unions have been negotiating in good faith since 13 June 2017. Despite the willingness of all parties to negotiate a new certified agreement, Management and the Unions are yet to reach position whereby an offer (in the form of a new agreement) can go to the staff for a vote. Council has made six (6) wage offers to the SBU. Unions have rejected all offers presented on behalf of their members. Given the refusal of Unions to allow any of Council’s six offers to proceed to a vote of employees, Council resolved on 24 April 2018 to: x Provide employees with an administrative pay increase (to base rates) of 2.25% back paid to 1 July 2017 – this change to base rates and back payment has been paid; and x Provide employees with an administrative pay increase (to base rates) of 2.0% or CPI, whichever is the highest from 1 July 2018 – base rates will change by 2.0% effective 1 July 2018 given CPI was 1.7%. Agenda – Ordinary Meeting 26 September 2018 #5865383 145 To date, unions have taken industrial action on 19th April 2018 and again during the period of 10th and 13th of August 2018. Following the SBU meeting on the 30 August 2018, an application for a scope order with the Queensland Industrial Relations Commission has now been made by 7 of the 9 Unions. The purpose of that application is to break up the currently proposed single agreement into two separate agreements. The Order seeks to separate those employees covered by Stream B and C of the Local Government Industry Award – State 2017, predominately the outdoor workforce. Management is unable to commit to future meetings due to the uncertainty now existing as to the nature and structure of the agreement(s) being negotiated. Council will oppose the making of such an order, however if it is made, the currently proposed single agreement will cease to exist in that form, and there is therefore little purpose in continuing to negotiate as to its terms. Accordingly, until further notice, no future meeting dates will be set. 2. MAJOR KEY PERFORMANCE INDICATORS FINANCE Council’s operating position at month end is a $4.1M surplus, $3.4M favourable to Council’s 2018/19 Budget. This favourable variance is driven mostly by less than anticipated materials and services ($2.5M), employee benefits ($464K), as well as greater than anticipated fees and charges ($372K) and miscellaneous revenue ($283K). This is offset by less than anticipated rates and utility charges revenue ($64K) and grant, subsidies and contributions ($58K) year to date. EMPLOYEES Council’s employee number as at 12 September 2018 was 1,222, of which 1,007 are full-time permanent. Turnover rate is currently tracking at 9.56%, which is slightly below the KPI of 10% (this figure is based on full time permanent/part time permanent staff and does not include casual, temporary or agency staff). Council’s Lost Time Injury Rate (LTIFR) of 13.28 is lower than the three-year average of 21.36 The Lost Time Injury Duration Rate (LTIDR) of 20.50 is lower than the three-year average of 36.25 Councils Days Lost due to injury for the financial year to 1 September 2018 of 102 days is lower than the three-year average of 250 days. Agenda – Ordinary Meeting 26 September 2018 #5865383 146 CAPITAL The 2018/19 Capital Works Summary report is tabled on a monthly basis. Each department and the relevant committee would have discussed and reviewed this at the relevant workshop. As at the end of August 2018, Council has spent approximately 14.67% of the capital budget with expenditure totalling $24.3M. Year To Date Year to Date Full Year Department Actual Budget Budget $000 $000 $000 Human Resources 8 - 200 Finance 694 1,014 9,868 Planning and Environment 56 280 1,450 Community, Sport & Cultural Services 11,543 13,786 49,186 Infrastructure Services 6,390 12,095 53,580 Cairns Water 5,595 8,393 51,193 Cairns Resource Recovery 33 39 305 TOTAL 24,319 35,607 165,782 3. RISK AND COMPLIANCE UPDATE Update on Risk and Compliance Management Council’s Risk Management Framework was reported through the Audit Committee held on the 31 July 2018. A full review of all risks and their associated treatment plans has been undertaken. The Corporate Risk Register has been updated. 4. GRANT FUNDING Minor Grants From time to time the opportunity arises to apply for small grants with relatively short application periods. It is proposed to give delegated authority to the CEO to approve minor grant applications up to an individual limit of $50K. A rolling register of applications approved under this delegation will be capture in the CEO’s subsequent monthly report. Recent examples include the State Library of Queensland Tech Savvy Seniors program for 2018/19 which opened on the 20 August and closed on the 14 September and is capped at $15K. To ensure that Council could assess this funding an application has already been submitted. Similarly, the Disability Access funding for 2018/19 has recently opened. Whilst initial consideration was given to a lesser cap, in order to efficiently handle funding sources like the gambling benefit fund a cap of $50K is recommended. Agenda – Ordinary Meeting 26 September 2018 #5865383 147 This is capped at $50K per application and officers are investigating portable beach matting to complement the recent works at Yorkeys Knob as one of the first applications for 18/19 funding pool. All applications would need to be within approved budget and resourcing. Agenda – Ordinary Meeting 26 September 2018 #5865383 148 Grant Status APPLICATIONS PENDING DECISION Grant Body Application Grant Value Grant Id Grant Name Grant Body Name Grant Status Dept Type Type Date ($000) Regional Growth Fund – Cairns Gallery Dept of Infrastructure and Regional 1197 Capital Federal Application 27/4/2018 13,267 CS&CS Precinct Development Building Our Regions (BOR) Round 4 - Dept of State Development Manufacturing 1203 Capital State Application 25/5/2018 3,000 W&W Cairns Material Recovery Facility Infrastructure & Planning Heavy Vehicle Program R6 - HVSPP6 - Dept of Infrastructure and Regional 1211 Capital Federal Application 29/03/2018 514 IS Hartley Street Development Heavy Vehicle Program R6 - HVSPP6 - Dept of Infrastructure and Regional 1212 Capital Federal Application 29/03/2018 236 IS Buchan St Development Heavy Vehicle Program R6 - HVSPP6 - Dept of Infrastructure and Regional 1213 Capital Federal Application 29/03/2018 458 IS Links Drive Development Innovation & Improvement Fund Round 2 Dept of State Development Manufacturing 1228 - LG Planning & Development Shared Operating State Application 27/07/2018 97 P&E Infrastructure & Planning Services Toolkit Building Our Regions Round 4 - MMP Dept of State Development Manufacturing 1230 Capital State Application 25/05/2018 650 CS&CS Back of House Infrastructure & Planning Cairns Gallery Precinct - Arts QLD 1232 Arts Queensland Capital State Application 2/5/2018 13,267 Executive Funding Smart Cities & Suburbs Program Round 2 1240 Dept Industry, Innovation & Science Capital Federal Application 2/6/2018 250 IS - Smart Urban Irrigation Project 2019/2020 Black Spot Program - Road 1244 Dept Transport & Main Roads Capital Federal Application 4/7/2018 495 IS Widening for Cycling Safety (Stage 2) 2019/2020 Black Spot Program - 1245 Dept Transport & Main Roads Capital Federal Application 6/7/2018 372 IS Roundabout Upgrades (Cycling) 2019/2020 Black Spot Program - 1246 Signalisation of Florence/Lake St Dept Transport & Main Roads Capital Federal Application 6/7/2018 1,000 IS Intersection 1251 Tech Savy Seniors 2018-19 State Library of Queensland Operating State Application 11/9/2018 15 CS&CS Agenda – Ordinary Meeting 26 September 2018 #5865383 149 Grant Body Application Grant Value Grant Id Grant Name Grant Body Name Grant Status Dept Type Type Date ($000) Innovation & Improvement Fund Round 2 Dept of State Development Manufacturing 1252 Operating State Application 27/07/2018 105 P&E - Designing for Density in the Tropics Infrastructure & Planning Successful / Active Grants Body Grant Grant Value Grant Id Grant Name Grant Body Name Grant Type Department Type Status ($000) 997 RADF Grant Arts Queensland Operating State Active 90 CS&CS 1016 First Five Forever - Best Start Family Literacy State Library of Queensland Operating State Active 702 CS&CS 1032 Community Partnerships Funding Program Mission Australia Operating Other Active 266 CS&CS 1047 Building our Regions - Collins Avenue Bridge Dept of Transport & Main Roads Capital State Active 1,500 IS Cycle Network Local Government Grants 1049 Program - Freshwater to Redlynch Cycle Link Dept of Transport & Main Roads Capital State Active 475 CS&CS Design and Construction Cycleway - Palm Cove/Trinity Bch (Design 1050 Dept of Transport & Main Roads Capital State Active 100 CS&CS only) - Cycle Network Dept of Infrastructure Local Government and 1052