Minutes (Open Portion)

Finance and Governance Committee Meeting

Page 2

10/12/2019

Minutes (Open Portion)

Finance and Governance Committee Meeting

Page 14

10/12/2019

THOMAS

The minutes of the Open Portion of the Finance and Governance Committee meeting held on Tuesday, 12 November 2019 and the Special Finance and Governance Committee meeting held on Monday, 2 December 2019, be confirmed as an accurate record. 

MOTION CARRIED

VOTING RECORD

6.1      City of Hobart Multi-Storey Car Parks - Removal of Early Bird Parking

SEXTON

That the recommendation contained in the report of the Manager City Parking and the Director City Innovation of 4 December 2019, be adopted.

MOTION CARRIED

VOTING RECORD

COMMITTEE RESOLUTION:

That early bird parking be reduced over the six-month period from 1 January to 30 June 2020 and completely removed from the Hobart Central and Centrepoint Car Parks from 1 July 2020.

6.2      Outstanding Long Term Parking Permit Debts as at
30 November 2019

DEPUTY LORD MAYOR BURNET

That the recommendation contained in the memorandum of the Manager Finance and the Deputy General Manager of 5 December 2019, be adopted.

MOTION CARRIED

VOTING RECORD

COMMITTEE RESOLUTION:

That the information contained in the memorandum of the Manager Finance and the Deputy General Manager of 5 December 2019 titled “Outstanding Long Term Parking Permit Debts as at 30 November 2019” be received and noted.

6.3      Procurement - Quotation Exemption Report

THOMAS

That the recommendation contained in the report of the Group Manager Rates & Procurement and the Deputy General Manager of 5 December 2019, be adopted.

MOTION CARRIED

VOTING RECORD

COMMITTEE RESOLUTION:

That:   1.    The Finance and Governance Committee receive and note the report titled ‘Procurement – Quotation Exemption Report’.

2.    The Committee note the exemption granted from the requirement to seek 3 written quotations for the period 1 July to 30 September 2019. 

7.1      Solar Panels

DENISON

That in accordance with Council’s policy, the following Notice of Motion which was adopted by the Finance and Governance Committee at its meeting of 10 December 2019, be considered by the Council, as amended by the insertion of the words (including an external audit) after the word prepared in the first line of the motion.

MOTION CARRIED

VOTING RECORD

COMMITTEE RESOLUTION:

Motion:

“That a report be prepared (including an external audit) to review the ongoing environmental and financial case for continuing with the program of installing solar panels on Council buildings that was commenced in 2016, given the increasing proportion of renewable energy generation in Tasmania and technological advances in other sectors such as transport over the past three years.”

Rationale:

“In June, 2016, the Finance Committee and subsequently Council supported a motion to install solar panels on several Council buildings. The motion proposed the following installations:

The total cost for the program was estimated at $571,400 and an annual saving of $82,500 was projected, delivering a payback period of 7 years, with an asset life of 25 years. The saving in grid electricity consumption was estimated at 450,000 kWh per year “equivalent to a reduction in greenhouse gas emissions of 100 tonnes CO₂ equivalent per annum”.

In 2017, an application was approved by the City Planning Committee and subsequently by Council for the installation of 88 x 290W array of panels to the annex of Town Hall (50 Macquarie St) at a cost of $2892. In December 2018, the Planning Committee approved an application for 42 x 310W array of panels to the upper level of the Town Hall Argyle wing at a cost of $13,000 and 108 x 310 panels at City Hall at a cost of $25,000. In July 2019, the Planning Committee and subsequently Council approved the installation of 85 x 310W solar panels at Mawson Pavilion at a cost of $3000. This application was described as being part of the solar panel installation program, however this location was not identified in the 2016 motion.

These applications were for Development Approval and no further financial or emission reduction information was required or provided to support the applications. Most solar panel arrays have been installed without requiring Planning approval.

The 2018-19 Annual Report states that $355,866 was spent from 6/9/2018 to 31/1/2019 for “P18/90 Solar supply and installation on Council buildings”. Capital Work in Progress for “Solar Array Installations on Council Buildings” was reported to be $628,000 for 2018-19 and $570,000 for 2017-18. $168,000 is currently committed for “Solar Systems Supply and Installation”.

The 2018-19 Annual Report states that Capital Work in Progress for “Solar Array Installations on Council Buildings” was $433,000 in 2016-17 and $570,000 in 2017-18 but does not identify any contracts.

The 2016-17 Annual Report states that $460,200 was spent from 7/10/2016 to 30/6/2017 for “P16/49 Solar systems supply and installation on City buildings”. This report noted that the DKHAC system had been expanded to 402 kW (34% larger than proposed in the 2016 program). Capital Work in Progress for “Solar Array Installations on Council Buildings” was reported to be $433,000 for 2016-17.

Spending on solar panel installation since the approval of the program in 2016 has been well beyond the initial value approved by Council, and is still ongoing.

When the program was approved in 2016, it was expected that the solar panels would save 11 to 25 cents per kWh with the sale of renewable energy certificates contributing to the expected savings.

Although there is likely to be savings in operating costs from generating energy from solar panels compared to purchasing power from the grid, the panels need to be depreciated, interest on loans needs to be paid and there may be maintenance and eventually disposal costs. It is probable that the financial case for installing solar panels has changed over the past three years.

Around 91% of power generated in Tasmania is from renewable sources (wind and hydro) and the state is on track to achieve 100% renewable by 2022. Due to the state’s high proportion of renewable energy generation, the emission reductions from installing solar arrays in Tasmania is lower than what was projected in 2016 using a standardised greenhouse gas emissions coefficient.

The initially projected 450,000 kWh of saved power at a cost of $571,400 is equivalent to around 18 tonnes of CO₂-e per year in emissions using recent Tasmanian data, rather than the reported 100 tonnes, representing 9 houses rather than 50. From 2022, there will be no relative reduction in GHG (greenhouse gas) emissions at all from solar panel energy generation.

Although additional solar power generation could supplement Council’s self sufficiency in emergency situations, it already has significant generator and existing solar generation capacity to sustain essential operations.

There are alternative investments than can be made to reduce emissions or achieve other environmental and financial benefits. For example, transport contributes a significant proportion of Tasmania’s GHG emissions, and transport technology has evolved significantly since 2016. The Council manages a significant fleet of vehicles and plant, and has a large workforce travelling to and from work each day. With the GHG emission reductions from solar panels in Tasmania approaching zero, a review of Council’s solar panel installation program is needed.”

https://www.energy.gov.au/publications/australian-energy-update-2018

http://www.dpac.tas.gov.au/__data/assets/pdf_file/0005/473774/Tasmanian_Greenhouse_Gas_Emissions_Report_2017.pdf

The General Manager reports:

“In line with the Council’s policy in relation to Notices of Motion, I advise that the matter is considered to be within the jurisdiction of the Hobart City Council as it relates to the supply of energy to Council buildings.”

8.1      Committee Actions - Status Report

DEPUTY LORD MAYOR BURNET

That the information be received and noted.

MOTION CARRIED

VOTING RECORD

That the information be received and noted.

MOTION CARRIED

VOTING RECORD

10.1    Alderman Briscoe - Expressions of Interest - Condell Place Carpark

Question:    Could the General Manager please provide an update in regards to the Expression of Interest process in relation to Condell Place and the future of the carpark?

Answer:       The General Manager advised that correspondence has been distributed to the traders and residents in North Hobart, a copy of which was recently distributed to Elected Members via the Hub.

The General Manager further advised that Consultants were being engaged to develop a ‘Place Vision’ for the North Hobart retail and restaurant strip along Elizabeth Street.  It is anticipated that this will be completed by mid- April 2020, although the Condell Place component will be expedited for consideration of the Council as soon as practicable.

10.2    Alderman Behrakis - Council Meeting Costs

Question:    Could the General Manager please provide the average cost of conducting a Council meeting, with the estimation to include the cost incurred for staff to draft and prepare reports for the consideration of a Council Committee and Council, together with supporting the meetings?

Answer:       The General Manager took the question on notice.