Please note:  These minutes are yet to be confirmed as a true record of proceedings

CITY OF BUSSELTON

MINUTES FOR THE Council  MEETING HELD ON 25 June 2014

TABLE OF CONTENTS

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

1....... Declaration of Opening and Announcement of Visitors. 3

2....... Attendance. 3

3....... Prayer. 3

4....... Public Question Time. 4

Response to Previous Questions Taken on Notice. 4

Nil 4

Public Question Time. 4

5....... Announcements Without Discussion.. 4

Announcements by the Presiding Member. 4

Announcements by other Members at the invitation of the Presiding Member. 4

6....... Application for Leave of Absence. 4

7....... Petitions and Presentations. 4

8....... Disclosure Of Interests. 4

9....... Confirmation and Receipt Of Minutes. 5

Previous Council Meetings. 5

9.1          Minutes of the Council  held on 28 May 2014. 5

Committee Meetings. 5

9.2          Minutes of a Meeting of the Meelup Regional Park Management Committee held 13 May 2014. 5

9.3          Minutes of a Meeting of the Finance Committee held 5 June 2014. 5

Items Brought Forward and Adoption by Exception Resolution.. 6

Items Brought Forward For Discussion. 6

Nil 6

En Bloc Motion. 6

10..... Reports of Committee. 8

10.1        Finance Committee - 5/06/2014 - FINANCIAL ACTIVITY STATEMENTS - PERIOD ENDING 30 APRIL 2014. 8

10.2        Finance Committee - 5/06/2014 - LIST OF PAYMENTS MADE – APRIL 2014. 15

10.3        Finance Committee - 5/06/2014 - ASSET MANAGEMENT PLANS. 17

6....... Planning and Development Services Report. 26

Nil

12..... Engineering and Work Services Report. 27

12.1        REGIONAL STRATEGIC WASTE MANAGEMENT PLAN.. 27

12.2        ADDENDUM TO SCHEDULE OF FEES AND CHARGES. 33

12.3        AWARD OF TENDER RFT06/14 PROVISION OF GREEEN WASTE PROCESSING AND RECYCLING   37

8....... Community and Commercial Services Report. 41

13.1        DUNSBOROUGH FORESHORE CAFÉ AND/OR KIOSK:  STRATEGIC REVIEW OF ALTERNATIVE SITES. 41

13.2        REQUEST FROM ST JOHN AMBULANCE TO LEASE A PORTION OF LOT 434 MOLLOY STREET BUSSELTON.. 48

9....... Finance and Corporate Services Report. 54

14.1        PROPOSED DIFFERENTIAL RATES IN THE DOLLAR AND ASSOCIATED MINIMUM PAYMENTS - 2014/15 FINANCIAL YEAR. 54

14.2        DRAFT CITY OF BUSSELTON CORPORATE BUSINESS PLAN 2014/15 - 2017/18. 58

10..... Chief Executive Officer's Report. 65

15.1        COUNCILLORS' INFORMATION BULLETIN.. 65

10.4        Policy and Legislation Committee - 19/06/2014 - REVIEW OF DELEGATIONS. 70

15.2        PROPOSED AGREEMENT TO PROCEED WITH NEW CONCEPT FOR 'RAILWAY HOUSE' AT BUSSELTON FORESHORE. 81

11..... Motions of which Previous Notice has been Given.. 86

16.1        LOCATION OF SOUTH WEST INSTITUTE OF TECHNOLOGY CAMPUS. 86

16.2        REQUEST FOR REPORT ON PROVISIONS RELATING TO RELOCATED DWELLINGS IN PORT GEOGRAPHE. 87

12..... Confidential Reports. 88

17.1        Finance Committee - 5/06/2014 - VACATING OCCUPIER – UNIT PAYOUT. 88

13..... Questions from Members. 89

19..... Public Question Time. 89

20..... Next Meeting Date. 89

14..... Closure. 89

 


Council                                                                                      3                                                                         25 June 2014

MINUTES

 

MINUTES OF A Meeting of the Busselton City Council HELD IN the Council Chambers, Administration Building, Southern Drive, Busselton, ON 25 June 2014 AT 5.30pm.

 

1.               Declaration of Opening and Announcement of Visitors

The Presiding Member open the meeting at 5.30pm.

2.               Attendance

Presiding Member:

Members:

 

Cr Ian Stubbs           Mayor

Cr Grant Henley

Cr John McCallum

Cr Tom Tuffin

Cr Gordon Bleechmore

Cr Rob Bennett

Cr Jenny Green

Cr Terry Best

 

Officers:

 

Mr Mike Archer, Chief Executive Officer

Mr Oliver Darby, Director, Engineering and Works Services

Mr Paul Needham, Director, Planning and Development Services

Mrs Naomi Searle, Director, Community and Commercial Services

Ms Sarah Pierson, A/Director, Finance and Corporate Services

Miss Lynley Rich, Manager, Governance Services

Mrs Katie Banks, Administration Officer, Governance

 

Apologies

 

Nil

 

Approved Leave of Absence

 

Cr Coralie Tarbotton

 

Media:

 

“Busselton-Dunsborough Times”

“Busselton-Dunsborough Mail”

 

Public:

 

3

3.               Prayer

The prayer was delivered by Reverend Desiree Snyman form St Georges Anglican Church, Dunsborough.

4.               Public Question Time

Response to Previous Questions Taken on Notice 

Nil

Public Question Time

Mr David Couch asked the Council to consider delaying consideration of Item 15.2 of the agenda - 15.2      Proposed Agreement to Proceed with New Concept for 'Railway House' at Busselton Foreshore until a thorough revisit and costing of utilising the the Jetty Point Tower for the co-habitation of GBTA and BJECA is carried out.

 

Response, Presiding Member:

The Presiding Member informed Mr Couch that the Item would be considered by Council at the meeting.

5.               Announcements Without Discussion

Announcements by the Presiding Member

                   Announcements by other Members at the invitation of the Presiding Member

 

Nil

6.               Application for Leave of Absence

                          C1406/145   Moved Councillor T Best, seconded Councillor Rob Bennett:

 

That leave of absence be granted to Councillor Jenny Green for the 27 August 2014Council meeting.

carried 8/0

7.               Petitions and Presentations

 

Nil  

8.               Disclosure Of Interests

The Mayor noted that a declaration of impartiality interest had been received from:

 

·         Cr John McCallum in relation to Agenda Item 13.2 - Request from St John Ambulance to Lease a Portion of Lot 434 Molloy Street Busselton

 

The Mayor advised that in accordance with the Local Government (Rules of Conduct) Regulations 2007 this declaration would be read out immediately before Item 13.2 was discussed.


 

9.               Confirmation and Receipt Of Minutes 

Previous Council Meetings

9.1             Minutes of the Council  held on 28 May 2014

Officer Recommendation and Council Decision

C1406/146    Moved Councillor G Bleechmore, seconded Councillor G Henley

That the Minutes of the Council  Meeting held 28 May 2014 be confirmed as a true and correct record.

CARRIED 8/0

 

Committee Meetings

9.2             Minutes of a Meeting of the Meelup Regional Park Management Committee held 13 May 2014

 

Officer Recommendation and Council Decision

C1406/147    Moved Councillor J McCallum, seconded Councillor G Henley

 

1)        That the minutes of a meeting of the Meelup Regional Park Management Committee held on 13 May 2014 be received.

 

2)        That the Council notes the outcomes of the Meelup Regional Park Management Committee meeting held on 13 May 2014 being:

           

a)    The Committee approved the use of Meelup Regional Park on 19 July 2014, for the Great Adventure Challenge event in accordance with the Meelup Regional Park General Event Conditions for the kayak leg of the challenge, from Eagle Bay, through Meelup Park to Dunsborough, however, did not approve the use of the unauthorised trail from Bunker Bay to Eagle Bay.

 

b)    The Committee received the Environment Officers Report.

 

CARRIED 8/0

 

Attachments

Attachment a   Published Under Separate Cover Minutes of Meelup Committee Meeting 13 May 2014

 

9.3             Minutes of a Meeting of the Finance Committee held 5 June 2014

 

Officer Recommendation and Council Decision

C1406/148    Moved Councillor J McCallum, seconded Councillor G Henley

 

1)        That the minutes of a meeting of the Finance Committee held on 5 June 2014 be received.

 

2)        That the Council notes the outcomes of the Finance Committee meeting held on 5 June 2014 being:

 

a)    The Committee noted the Information Bulletin – April 2014

b)    The Financial Activity Statements – Period Ending 30 April 2014 Item is presented for Council consideration at Item 10.1 of this agenda.

c)    The List of Payments Made – April 2014 Item is presented for Council consideration at Item 10.2 of this agenda.

d)    The Financial Activity Statements – Period Ending 30 April 2014 Item is presented for Council consideration at Item 10.3 of this agenda.

e)    The Asset Management Plans Item is presented for Council consideration at Item 10.4 of this agenda.

f)     The Vacating Occupier – Unit Payout Confidential Item is presented for Council consideration at Item 17.1 of this agenda.

CARRIED 8/0

 

 

Items Brought Forward and Adoption by Exception Resolution

At this juncture the Mayor advised the meeting that with the exception of the items identified to be withdrawn for discussion, that the remaining reports, including the Committee and Officer Recommendations, will be adopted en bloc.

Items Brought Forward For Discussion

Nil

En Bloc Motion

10.1        Finance Committee - 5/06/2014 - FINANCIAL ACTIVITY STATEMENTS - PERIOD ENDING 30 APRIL 2014

10.2        Finance Committee - 5/06/2014 - LIST OF PAYMENTS MADE – APRIL 2014

10.3        Finance Committee - 5/06/2014 - ASSET MANAGEMENT PLANS

12.1        REGIONAL STRATEGIC WASTE MANAGEMENT PLAN

12.3        AWARD OF TENDER RFT06/14 PROVISION OF GREEEN WASTE PROCESSING AND RECYCLING

13.1        DUNSBOROUGH FORESHORE CAFÉ AND/OR KIOSK:  STRATEGIC REVIEW OF ALTERNATIVE SITES

14.1        PROPOSED DIFFERENTIAL RATES IN THE DOLLAR AND ASSOCIATED MINIMUM PAYMENTS - 2014/15 FINANCIAL YEAR

15.1        Councillors' Information Bulletin

 

Officer Recommendation and Council Decision

C1406/149    Moved Councillor G Henley, seconded Councillor J Green

 

That the Committee and Officer Recommendations in relation to the following agenda items be carried en bloc:

10.1        Finance Committee - 5/06/2014 - FINANCIAL ACTIVITY STATEMENTS - PERIOD ENDING 30 APRIL 2014

10.2        Finance Committee - 5/06/2014 - LIST OF PAYMENTS MADE – APRIL 2014

10.3        Finance Committee - 5/06/2014 - ASSET MANAGEMENT PLANS

12.1        REGIONAL STRATEGIC WASTE MANAGEMENT PLAN

12.3        AWARD OF TENDER RFT06/14 PROVISION OF GREEEN WASTE PROCESSING AND RECYCLING

13.1        DUNSBOROUGH FORESHORE CAFÉ AND/OR KIOSK:  STRATEGIC REVIEW OF ALTERNATIVE SITES

14.1        PROPOSED DIFFERENTIAL RATES IN THE DOLLAR AND ASSOCIATED MINIMUM PAYMENTS - 2014/15 FINANCIAL YEAR

15.1        Councillors' Information Bulletin

 

CARRIED 8/0

EN BLOC

 


Council                                                                                      9                                                                         25 June 2014

10.             Reports of Committee

10.1           Finance Committee - 5/06/2014 - FINANCIAL ACTIVITY STATEMENTS - PERIOD ENDING 30 APRIL 2014

SUBJECT INDEX:

Budget Planning and Reporting

STRATEGIC OBJECTIVE:

An organisation that is managed effectively and achieves positive outcomes for the community.

BUSINESS UNIT:

Finance and Information Technology

ACTIVITY UNIT:

Finance & Information Technology

REPORTING OFFICER:

A/Director, Finance and Corporate Services - Darren Whitby

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Matthew Smith

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Financial Activity Statements - Period Ending 30 April 2014   

 

This item was considered by the Finance Committee at its meeting on 5 June 2014, the recommendations from which have been included in this report. 

 

PRÉCIS

 

Pursuant to Section 6.4 of the Local Government Act (‘the Act’) and Regulation 34(4) of the Local Government (Financial Management) Regulations (‘the Regulations’), a local government is to prepare, on a monthly basis, a statement of financial activity that reports on the City’s financial performance in relation to its adopted/ amended budget.

 

This report has been compiled to fulfil the statutory reporting requirements of the Act and associated Regulations, whilst also providing the Council with an overview of the City’s financial performance on a year to date basis for the period ending 30 April 2014.

 

 

BACKGROUND

 

The Regulations detail the form and manner in which financial activity statements are to be presented to the Council on a monthly basis; and are to include the following:

 

§ Annual budget estimates

§ Budget estimates to the end of the month in which the statement relates

§ Actual amounts of revenue and expenditure to the end of the month in which the statement relates

§ Material variances between budget estimates and actual revenue/ expenditure/ (including an explanation of any material variances)

§ The net current assets at the end of the month to which the statement relates (including an explanation of the composition of the net current position)

 

Additionally, and pursuant to Regulation 34(5) of the Regulations, a local government is required to adopt a material variance reporting threshold in each financial year. At its meeting of 22 July 2013, the Council adopted (C1307/185) the following material variance reporting threshold for the 2013/14 financial year:

 

That pursuant to Regulation 34(5) of the Local Government (Financial Management) Regulations, the Council adopts a material variance reporting threshold with respect to financial activity statement reporting for the 2013/14 financial year to comprise variances equal to or greater than 10% of the year to date budget amount as detailed in the Income Statement by Nature and Type/ Statement of Financial Activity report, however variances due to timing differences and/ or seasonal adjustments are to be reported on a quarterly basis.  

STATUTORY ENVIRONMENT

 

Section 6.4 of the Local Government Act and Regulation 34 of the Local Government (Financial Management) Regulations detail the form and manner in which a local government is to prepare financial activity statements.    

 

RELEVANT PLANS AND POLICIES

 

NA.

 

FINANCIAL IMPLICATIONS

 

Any financial implications are detailed within the context of this report.

 

STRATEGIC COMMUNITY OBJECTIVES

 

This matter principally aligns with Key Goal Area 6 – ‘Open and Collaborative Leadership’ and more specifically Community Objective 6.3 - ‘An organisation that is managed effectively and achieves positive outcomes for the community’. The achievement of the above is underpinned by the Council strategy to ‘ensure the long term financial sustainability of Council through effective financial management’.

 

RISK ASSESSMENT

 

Risk assessments have been previously completed in relation to a number of ‘higher level’ financial matters, including timely and accurate financial reporting to enable the Council to make fully informed financial decisions. The completion of the monthly Financial Activity Statement report is a treatment/ control that assists in addressing this risk.   

 

CONSULTATION

 

NA.

 

OFFICER COMMENT

 

In order to fulfil statutory reporting requirements, and to provide the Council with a synopsis of the City’s overall financial performance on a year to date basis, the following financial reports are attached hereto:

 

§ Statement of Financial Activity

This report provides details of the City’s operating revenues and expenditures on a year to date basis, by nature and type (i.e. description). The report has been further extrapolated to include details of non-cash adjustments and capital revenues and expenditures, to identify the City’s net current position; which reconciles with that reflected in the associated Net Current Position report.

 

§ Net Current Position

This report provides details of the composition of the net current asset position on a year to date basis, and reconciles with the net current position as per the Statement of Financial Activity.

 

§ Capital Acquisition Report

This report provides year to date budget performance (by line item) in respect of the following capital expenditure activities: 

o Land and Buildings

o Plant and Equipment

o Furniture and Equipment

o Infrastructure

 

§ Reserve Movements Report

This report provides summary details of transfers to and from reserve funds, and also associated interest earnings on reserve funds, on a year to date basis. 

 

§ Reserve Transfers to Municipal Fund

This report provides specific detail in respect of expenditures being funded from reserves.  

 

Additional reports and/ or charts are also provided to further supplement the information comprised within the statutory financial reports.

 

COMMENTS ON FINANCIAL ACTIVITY TO 30 APRIL 2014

 

Operating Activity

 

§ Operating Revenue

 

As at 30 April 2014, there is a variance of -1.3% in total operating revenue, with the following categories exceeding the 10% material variance threshold:  

 

Description

Variance

%

Variance

$000’s

Operating Grants, Subsidies and Contributions

+44%

+$1,197

Other Revenue

+57%

+$208

Non-Operating Grants, Subsidies and Contributions

-38%

-$3,406

Profit on Asset Disposal

-74%

-$41

 

A summary of the above variances is provided as follows:

 

Operating Grants, Subsidies and Contributions (YTD Variance: +$1,197K)

The current variance is primarily attributable to:

§ The reimbursement of approximately $825K in relation to storm damage clean-up costs (January 2013 - $107K and September 2013 - $718K). However, this revenue is significantly offset by the additional costs associated with the September 2013 clean-up.

§ The earlier than projected raising of an invoice for $335K to the Busselton Jetty Environment and Conservation Association Inc. (BJECA) for the balance of the 2013/14 Jetty licence fee.        

§ A budget timing difference of -$160K in relation to grant funding for the Women’s Refuge; resulting from delays associated with this matter.  

 

Other Revenue (YTD variance: +$208K)

The current variance is primarily attributable to:

§ Recyclables revenue is presently $50K above year to date budget estimates, with this principally due to the transfer of longstanding Trust funds held for recycling purposes.  

§ Sundry Income is presently $42K above year to date budget estimates, however the current balance is primarily due to ‘non-cash’ accounting entries (e.g. bringing the value of trade-in’s to account etc.).

§ Collective fines and penalties revenue is presently $30K above year to date budget estimates, albeit the variance is largely impacted by current budget timing differences (e.g. Bushfire fines)      

§ Unbudgeted Long Service Leave contributions from other local government authorities totalling $41K have been received, although this revenue is offset through employee costs.

§ Registration fees totalling $31K, relating to the Local Government CEO Conference. The adopted budget did not include an allocation for this revenue item.     

 

Non-Operating Grants, Subsidies and Contributions (YTD Variance: -$3,406K)

The current variance is primarily attributable to:

§ The unbudgeted recognition of Bushfire Service donated assets totalling $925K

§ The receipt of additional developer contribution funds of approximately $1.2M (above YTD budget estimates), albeit these funds are transferred to Restricted Assets upon receipt.

§ A collective year to date budget variance of approximately -$5.6M in respect of government grant funding, relating to projects such as the Busselton Regional Airport (-$890K), the Engineering capital works program (-$1.1M) and the Busselton Foreshore project (-$4.3M). In several instances, the respective grants have not been approved and consequently, the associated capital expenditures will not be incurred.  

 

Profit on Asset Disposal (YTD Variance: -$41K)

This (accounting) variance is directly related to the year to date performance in the ‘Plant and Equipment’ capital expenditure classification.   

  

§   Operating Expenditure

 

As at 30 April 2014, there is a variance of -2.5% in total operating expenditure, with the following categories exceeding the 10% material variance threshold:  

 

Description

Variance

%

Variance

$000’s

Other Expenditure

-23%

-$654

Allocations

+10%

+$134

Interest Expenses

-48%

-$169

Loss on Asset Disposals

-50%

-$85

 

A summary of the above variances is provided as follows:

 

Other Expenditure (YTD Variance: - $654K)

The current variance is primarily attributable to:

§ Donations, contributions and sponsorships expenditure is presently $347K below YTD budget estimates.

§ Collective Members’ related expenditure is presently $39K below YTD budget estimates.

§ Regional Development Strategies expenditure is presently $55K below YTD budget estimates.

§ Collective valuation expenditure is presently $87K below YTD budget estimates.

§ Community consultation related expenditure is presently $30K below YTD budget estimates.

 

Allocations (YTD Variance: +$134K)

The current (accounting) variance is primarily due to timing differences. Whilst the majority of individual allocations are administration based (and clear each month), this activity also includes plant and overhead related allocations. Due to the nature of these line items, the activity reflects as a net offset against operating expenditure, in recognition of those expenses that are of a capital nature (and need to be recognised accordingly). The present variance is reflective of the increased level of capital works activities being undertaken prior to winter.                  

 

Interest Expenses (YTD Variance: -$169K)

The current variance is primarily due to the delay in the drawdown of budgeted new loan facilities, with the variance further impacted by only a portion of two budgeted loans either drawn, or proposed to be drawn, this financial year.  In terms of the Annual Budget Review, it was projected that budget savings of approximately $173K would be achieved in this activity by financial year end, excluding reserve funded loan repayments. This estimate remains relevant.         

 

Loss on Asset Disposals (YTD Variance: - $85K)

As with the ‘Profit on Asset Disposal’ operating revenue category, this (accounting) variance is directly related to the year to date performance in the ‘Plant and Equipment’ capital expenditure classification.   

 

Capital Activity

 

§  Capital Revenue

 

As at 30 April 2014, there is a variance of -50% in total capital revenue, with the following categories exceeding the 10% material variance threshold:  

 

Description

Variance

%

Variance

$000’s

Proceeds from the Sale of Assets

-60%

-$460

Proceeds from New Loans

-85%

-$6,300

Transfers from Restricted Assets

-82%

-$2,977

Transfers from Reserves

+293%

+$3,245

 

A summary of the above variances is provided as follows:

 

Proceeds from the Sale of Assets (YTD Variance: -$460K)

This variance is directly impacted by the current performance in the ‘Plant and Equipment’ capital expenditure classification. With plant acquisitions approximately $1.9M (or 49%) below year to date budget estimates, the revenue associated with budgeted plant disposals/ trade-in’s is also well below year to date budget estimates.       

 

Proceeds from New Loans (YTD Variance: -$6,300K)

In terms of the amended budget, the following loan facilities were budgeted to have been drawn by the end of March 2014:

 

Description

Amount

$M

Land Acquisition for Parking

$2.2

Geographe Leisure Centre (GLC) Extensions

$1.2

Busselton Foreshore

- Active Playing Fields ($1.1M)

- Tennis/ Croquet Club Infrastructure ($2.1M)

- Brown Street Extension ($0.8M)

$4.0

TOTAL

$7.4

 

At this juncture, only $1.1M of the ‘Land Acquisition for Parking’ loan has been drawn. The GLC extensions loan ($1.2M), the Active Playing Fields component of the Busselton Foreshore loan ($1.1M), and also the Airport jet refuelling loan ($350K), are all projected to be drawn prior to the end of May 2014.        

 

Transfers from Restricted Assets (YTD Variance: - $2,977K)

This budget comprises a range of matters including the transfer of:

 

§ cash in lieu of parking (land acquisitions)

§ unspent loan funds (geothermal project)

§ unspent grant funding (for a range of projects)

§ contributions to works as identified in the adopted budget   

 

Whilst the year to date actual includes approximately $300K in the repayment of (unbudgeted) bonds and deposits, other transfers are now being undertaken wherever possible, to assist in funding operational cash-flow requirements.      

 

Transfers from Reserves (YTD Variance: +$3,245K)

This variance is primarily attributable to the earlier than projected transfer of funds (to recoup associated expenditures incurred), to assist in funding the City’s operational cash-flow requirements.          

 

§   Capital Expenditure

 

As at 30 April 2014, there is a variance of -33% in total capital expenditure, with the following categories exceeding the 10% material variance threshold: 

 

Description

Variance

%

Variance

$000’s

Land and Buildings

-46%

-$4,624

Plant and Equipment

-49%

-$1,899

Infrastructure

-50%

-$10,747

Total Loan Repayments – Principal

-25%

-$204

Transfers to Restricted Assets

+977%

+$3,159

 

The attachments to this report include detailed listings of the following capital expenditure (project) items, to assist in reviewing specific variances:

§ Land and Buildings

§ Plant and Equipment

§ Furniture and Equipment

§ Infrastructure

 

In respect of the other classifications, an overview of the year to date financial performance is provided as follows:

 

Total Loan Repayments – Principal (YTD Variance: - $204K)

This variance mirrors the ‘Interest Expenses’ operating expenditure variance, albeit this activity refers to principal repayments. In terms of the Annual Budget Review, it was projected that budget savings of approximately $138K would be achieved in this activity by financial year end, excluding reserve funded loan repayments. This estimate remains relevant.    

 

Transfers to Restricted Assets (YTD Variance: +$3,159K)

The annual budget in any year is based on a conservative estimate of contribution funds that may be received, plus an estimated transfer of Aged Housing funds. The current favourable variance is primarily due to the receipt of contribution monies of approximately $1.2M (initially brought to account via the non-operating grants, subsidies and contributions operating revenue category), along with bond and deposit receipts of approximately $1.9M (for which no annual budget allocation is made). It is important to note however that performance in this activity does not directly impact on the City’s overall annual closing position, as revenue received is quarantined to equity.  

 

BUDGET VARIATIONS AND OTHER ‘KNOWNS’

 

NA.

 

CONCLUSION

 

In terms of the Annual Budget Review, completed as at 28 February 2014, a surplus closing position of approximately $330K was projected as at 30 June 2014 (excluding any re-list items). Notwithstanding this, the Net Current Position as at 30 April 2014 ($4.9M) is some $3.6M less than the 30 April 2013 position, in which a closing surplus position of $1.7M was achieved at financial year end. Whilst acknowledging that the Net Current Position is impacted by many factors, and fluctuates significantly towards financial year end, the comparative differential has nonetheless flagged an increased necessity to closely monitor financial performance over the remainder of the current financial year.

 

OPTIONS

 

The Council may determine not to receive the statutory financial activity statement reports.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

NA.

 

Comittee Recommendation and Council Decision

C1406/150    Moved Councillor G Henley, seconded Councillor J Green

 

That the Council receives the statutory financial activity statement reports for the period ending 30 April 2014, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations.

CARRIED 8/0

eN bloc

 


Council                                                                                      15                                                                      25 June 2014

10.2           Finance Committee - 5/06/2014 - LIST OF PAYMENTS MADE – APRIL 2014

SUBJECT INDEX:

Financial Operations

STRATEGIC OBJECTIVE:

An organisation that is managed effectively and achieves positive outcomes for the community.

BUSINESS UNIT:

Finance and Information Technology

ACTIVITY UNIT:

Finance and Information Technology

REPORTING OFFICER:

A/Director, Finance and Corporate Services - Darren Whitby

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Matthew Smith

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   List of Payments Made - April 2014   

 

This item was considered by the Finance Committee at its meeting on 5 June 2014, the recommendations from which have been included in this report. 

 

PRÉCIS

 

This report provides details of payments made from the City’s bank accounts for the month of April 2014, for noting by the Council and recording in the Council Minutes.

 

 

BACKGROUND

 

The Local Government (Financial Management) Regulations require that when the Council has delegated authority to the Chief Executive Officer to make payments from the City’s bank accounts, that a list of payments made is prepared each month for presentation to, and noting by, the Council.

 

STATUTORY ENVIRONMENT

 

Section 6.10 of the Local Government Act and more specifically, Regulation 13 of the Local Government (Financial Management) Regulations; refer to the requirement for a listing of payments made each month to be presented to the Council. 

 

RELEVANT PLANS AND POLICIES

 

NA.

 

FINANCIAL IMPLICATIONS

 

NA.

 

STRATEGIC COMMUNITY OBJECTIVES

 

This matter principally aligns with Key Goal Area 6 – ‘Open and Collaborative Leadership’ and more specifically Community Objective 6.3 - ‘An organisation that is managed effectively and achieves positive outcomes for the community’.

 

RISK ASSESSMENT

 

NA.

 

CONSULTATION

 

NA.

 

OFFICER COMMENT

 

NA.

 

CONCLUSION

 

NA.

 

OPTIONS

 

NA.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

NA.

 

 

Committee Recommendation and Council Decision

C1406/151    Moved Councillor G Henley, seconded Councillor J Green

 

That the Council notes the payment of voucher numbers M108433 – M108668, EF033748 – EF034227, T007075 – T007079, and DD002163 – DD002184, together totalling $5,047,457.38.

 

CARRIED 8/0

EN BLOC

 


Council                                                                                      17                                                                      25 June 2014

10.3           Finance Committee - 5/06/2014 - ASSET MANAGEMENT PLANS

SUBJECT INDEX:

Asset Management

STRATEGIC OBJECTIVE:

Infrastructure assets are well maintained and responsibly managed to provide for future generations.

BUSINESS UNIT:

Engineering and Facilities Services

ACTIVITY UNIT:

Asset Management

REPORTING OFFICER:

Asset Coordinator - Dan Hall

AUTHORISING OFFICER:

Director, Engineering and Works Services - Oliver Darby

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Drainage Asset Management Plan

Attachment b    Footpaths and Cycleways Management Plan  

 

This item was considered by the Finance Committee at its meeting on 5 June 2014, the recommendations from which have been included in this report. 

 

PRÉCIS

 

The purpose of this report is to present for adoption the Footpaths and Cycle Ways Asset Management Plan (FCAMP) and Drainage Asset Management Plan (DAMP).

 

This report recommends that the Council adopts the asset management plans for footpaths, cycle ways and drainage.

 

 

BACKGROUND

 

In June 2013, the Council adopted a suite of corporate planning documents in order to comply with the State Governments Integrated Planning Framework. These documents were; a Strategic Community Plan and a Corporate Business Plan, supported and informed by key resourcing and informing plans, namely Asset Management Plans, a Long Term Financial Plan and a Workforce Plan.  Falling out of such planning each year will be each local government’s Annual Budget.  This framework is commonly referred to as Integrated Planning.

 

Under the guidance of the framework, asset management plans are required to be formulated outlining relevant information about each asset class such as location, size, value, condition and timing and cost of replacements/renewals of existing infrastructure.

 

Whilst these asset management plans are ultimately required to be completed for all City infrastructure assets, it is being done in a staged manner, starting with the major asset classes first.  Plans for Roads, Buildings and Parks and Gardens were adopted in June 2013 and the DAMP and FCAMP have been developed in 2014, and are presented within this report for adoption.

 

STATUTORY ENVIRONMENT

 

The Local Government Act 1995 S5.56 (1) requires the Local Government to develop a “plan for the future” and further detail in relation to this requirement is provided in regulation 19 of the Local Government (Administration) Regulations. The Local Government is required to have a corporate business plan linking to long term financial planning that integrates asset management, workforce planning and specific council plans (informing strategies) with a strategic plan.

 


 

RELEVANT PLANS AND POLICIES

 

The data from Asset Management Plans is incorporated into the Long Term Financial Plan and in this way informs the Corporate Business Plan and Annual Budget.

 

FINANCIAL IMPLICATIONS

 

The plans provide the Council with information pertaining to any “funding gaps” that may exist within the relevant asset category. i.e. situations whereby what has been spent historically is less than what is required into the future.

 

Expenditure was also scrutinised in terms of the amount being spent historically on renewing the existing assets as opposed to new and upgraded assets. Renewal of existing assets is critical in ensuring the maximum life is achieved from the assets in the most cost effective manner.

 

No immediate backlog of required renewals for drains or paths and cycle ways has been identified at this stage. Recommendations have been made within the plans around the need to increase renewal expenditure on historical levels and also review maintenance activities in the short term.

 

The long term perspective for these assets is that as each respective asset network ages, the renewal requirements will increase; the main consideration for the Council here is when to start putting money away to fund these large future spikes.

 

At what point in time is it incumbent on the Council to set funds aside for expenditure required in thirty years’ time, when there is no current large backlog of works?.

 

There is a balance needed between providing the assets for the ratepayers of today as well as providing surety for the rate payers of tomorrow. The recommendations made within the plans aim to achieve a balance between the funding requirements of today and tomorrow.

 

Drainage

 

The current LTFP 2015/16 – 2023/24 contains  allocated funds to the renewal of the drainage network. This amount allocated equated to an average yearly amount of $353,245 over ten years (2015/16 – 2023/24.

This amount of $332,900 equates to 0.55% per year of the current estimated replacement cost of the drainage network (currently estimated at $60,354,884). It is important that these funds remain allocated to drainage renewal – either through annual yearly expenditure or placement in a reserve for future identified projects.

As more research is undertaken and more is known about the current state of the drainage network, and more importantly; the costs associated with any large scale renewal, then it is likely that the City will be required to direct more funds to drainage renewal.

Whilst no recommendations for increased funding are made within the DAMP, it is perhaps prudent to note that future revisions are likely to recommend an increase in expenditure for drainage assets.

Any increase in expenditure though, will only be effective with a clear idea on how and where to spend it – especially in terms of large scale expenditure.

As an example (and purely for illustration purposes) an increase of renewal expenditure to between 1-2% of the current estimated replacement value ($60,354,884), would increase the average annual expenditure to between $600,000 and $1,200,000 per annum. An extra $270,000 - $870,000 over and above what’s currently allocated with the LTFP.

Based on the estimated age of the pipes and the Estimated Useful Life (EUL) of eighty years; the first renewal based on age would be 2040. The replacement cost of these assets would be $1.09M (in 2014 dollars). Although this figure is only an estimate, it does give an indication that any condition related failures of a network or catchment level are unlikely between now and the short-medium term.

Based on the condition assessments undertaken thus far, more immediate issues would revolve around increasing scheduled maintenance and dealing with isolated structural and serviceability issues. This should be combined within ongoing research and planning to ensure any large capital expenditure is undertaken in an effective manner.

The Cities financial obligations towards the drainage network will increase as times goes on and the network ages. With this in mind, it is important to put mechanisms in place now to ensure a large backlog of works doesn’t develop over time.

These mechanisms would include an increase in scheduled maintenance activities such as pipe jetting and vacuuming as well as more detailed stormwater management planning. It should be noted however, that renewal of high priority areas will still be required to be undertaken in conjunction with this additional research.

Footpaths and Cycle Ways

The current LTFP 2015/16 – 2023/24 contains allocated funds for footpaths and cycle ways construction. This amount allocated equated to an average yearly amount of $697,064 over ten years (2015/16 – 2023/24).  Of this amount $284,966 p.a. was to be allocated to footpath construction and $412,098 p.a. was for cycle ways construction. This amount of $697,064 is 2% of the current replacement cost of footpaths and cycle ways - $31,790,343.

The modelling undertaken within the FCAMP has not shown any additional funding required over and above what is allocated within the LTFP. It has however, highlighted the need to increase historical levels of renewal over time, within these existing expenditure levels.

Historically, (based on average 2008/09 -2011/12) the City has spent around 15% of its annual footpaths and Cycle Ways budget on renewal of existing footpaths. While this low percentage can be attributed to the overall age of the network, it needs to be increased over time to ensure the overall longevity of this existing network.

Within the first ten years (2014/15 – 2023/24)   of the FCAMP the renewal funding required is an average of around $11,000 p.a. This increases significantly over years eleven to twenty (2024/25 – 2034/35) to around $895,000 p.a. This equates to an average yearly total of $452,592 for the first twenty years of the plan. (2014/15 – 2034/35)

The FCAMP recommends that the renewal percentage be increased over time to meet the existing and predicted renewal requirements.

Planning for footpaths and cycle ways also includes a requirement for new construction. This is to link strategic footpaths together and also provides and also provides new or upgraded paths for areas which have narrow or no paths.

An estimate of potential expenditure for new footpaths is $7.5M and cycle ways is
$9.2M. These are broad estimates based on all possible paths. These figures could be further refined and prioritised; however are an indication of the demand for new paths and cycle ways within the district.

Construction of new paths and cycle ways is currently managed through prioritisation of the above lists within each year’s available budgets.

For these new paths to be achieved over a twenty year period, an average yearly amount required would be $375,000 p.a. for footpaths and $460,000 p.a. for cycle ways. Bearing in mind that the current yearly average within the LTFP is $827,716 (extrapolated over twenty years), a balance needs to be found to manage the network within existing expenditure levels.

Although there is no immediate “backlog” of works identified for footpaths, there are some large spikes in expenditure from year 30 onwards. These spikes are caused by large amounts of footpath being constructed at around the same time, being of similar current condition and as a result, being due for replacement at around the same time (i.e. Provence, Vasse Newtown). This increases the average renewal funding required to cover the next fifty years of footpath renewal to $1,342,637 over 50 years.

Bearing in mind that the overall fifty year average based on the extrapolation of the current LTFP figures is approx. $1.4M, then the continuation of the current allocation of funds would sufficiently cover the cost of the required renewals. It should be noted here though, that this does not cover the construction of any new footpaths or cycle ways.

The following, are potential options for the ongoing management of the paths and cycle ways network; considering the implications of building new paths also.

 

Scenario 1 - Fund fifty year renewal requirements of footpaths and cycle ways, with ongoing amount allocated with LTFP.

 

This option will present well in terms of the Cities ongoing asset management sustainability including ratios for asset renewal. The downside of this option is that no (or extremely minimal) new paths will be able to be built using these funds.

 

Scenario 1

          Ave p.a.
         $

Footpath Renewal 1-50 years

1,342,637

Ave Amount Allocated within LTFP

1,400,106

 

Scenario 2 - All new paths and cycle ways are built over the next twenty years using the funds allocated within the LTFP.

 

This will provide some vital linkages within the network as well as allow for older areas subject to infill housing to be upgraded and improved. This option will not allow for renewal to take place over the first twenty years. At the conclusion of the twenty years there will be a backlog of works for footpath and cycle way renewal of $16.7M. As an example of the extent of this backlog, the Council would need to implement a one off rate increase now of approx. 2-2.5% (based on 2014/15 draft budget base rate of $35.2M) for the renewal requirements over the first twenty years.

 

 

 

Scenario 2

          Ave p.a.
         $

New Paths and Cycle Ways 1-20 years

835,000

Ave Amount Allocated within LTFP

827,000

 

Scenario 3 –The renewal requirements over the first twenty years be funded through the LTFP allocation and the balance remaining each year be used for construction of new paths.

                                                                                                              

This option will allow for a balance of new and renewal, however it will also create a backlog of $7.5M after twenty years. This would equate to a on off rate increase now of 1-1.25% (based on 2014/15 draft budget base rate of $35.2M). proposed new paths would have to be further prioritised under this option also.

 

Although an increase in funding is an option to eliminate the expected renewal backlog resulting from this option (at the conclusion of twenty years). A more prudent approach in the short term may be a full review of the existing network to determine if there are any opportunities for rationalisation which could result in cost-saving in the future.

 

The results of this review could be presented to the Council before the next full review of the PCAMP due in 2016/17 – or at Councils earliest convenience if need be.

 

The recommended for these scenarios is number three.

 

Scenario 3

          Ave p.a.
         $

Renewal Paths and Cycle Ways 1-20

452,683

Ave Amount Allocated within LTFP 1-20

827,000

new Paths and Cycle Ways 1-20

375,033

 

STRATEGIC COMMUNITY OBJECTIVES

 

This matter principally aligns with Key Goal Area 2 – ‘Well Planned, Vibrant and Active Place’ and more specifically Community Objective 2.3 ‐ ‘Infrastructure assets that are well maintained and responsibly managed to provide for future generations’.

 

RISK ASSESSMENT

 

An assessment of the potential implications of not implementing the officer recommendation and

adopting the asset management plans has been undertaken using the City’s risk assessment framework.

The table below shows identified risks where the residual risk, once controls have been identified, as ‘medium’ or greater;

 

Risk

Controls

Consequence

Likelihood

Risk Level

Increase in asset Funding Gaps

Reduced levels of service

Financial

Operations

Likely

Major

 

CONSULTATION

 

Nil.

 


 

OFFICER COMMENT

 

Core and Advanced Asset Management

 

The asset management plans are prepared in the context of core asset management working towards advanced asset management planning. The initial plans have been undertaken to meet minimum organisational and legislative requirements for financial planning and reporting. This is referred to as the “core” approach and provides basic technical management outputs such as statements on current levels of service, forward replacement programmes and associated cash flow projections based on historical performance.

 

Advanced asset management involves engaging with the community to discuss and agree on alternative levels of service, applying analysis to individual assets and implementation of improvements identified in core planning.

 

Some elements of advanced asset management have been able to be incorporated in this initial process, such as discussion on alternative levels of service and applying analysis to individual assets.

 

Scope of Plans

 

The DAMP and FCAMP have been developed through a combination of desktop analysis, condition assessments on-site and staff knowledge and are building blocks for the ongoing management of the assets.

Condition assessments for footpaths and cycle ways were undertaken through a combination of on-site assessments and also use of the high speed video data that was captured for roads in 2013/14. This has saved significant amounts of time and made further use of the video data for roads.

Due to the difficult and expensive nature of detailed condition assessment of stormwater drainage infrastructure, Works and Design staff were consulted initially to determine any known areas of service deficiency. This was followed with drainage camera inspections of selected known problem areas.

This allowed the vast experience and knowledge of staff to be captured within the plan

These discussions also raised some interesting points regarding what level and type of detail should be contained within the DAMP.

Renewal / upgrade of drainage is not as simple as replacing like for like as whole of network considerations are needed when drainage works are undertaken. Unlike most other infrastructure assets such as roads and footpaths any changes made to one or more points in a drainage area can have a direct and significant effect of other drainage within the catchment or sub-catchment.

Stormwater management should consider issues at catchment and sub catchment level, rather than focussing on site level only.

Increasing pipe size and capacity in one area to solve a problem can cause coping issues for other smaller sized drainage down the line. Without a holistic approach, drainage renewal undertaken in isolation may be simply moving the problem from one area to another and creating larger problems along the way.


 

Opportunities for further investigation will also need to consider factors such as;

·    The need to have a disconnect between direct flow of stormwater at site into a natural water body, allowing time for filtration of pollutants to occur.

·    Rainfall has the potential to recharge the superficial aquifer, however an increase in impervious areas through urban development means less infiltration. Undeveloped catchments can absorb up to 90% of precipitation, whereas in built up areas, infiltration can be as little as 10% (ECITALC, 2002)

·    Traditional drainage systems have been designed to minimise local flooding by providing a quick path for run-off to waterways or basins. However solving the initial problem of moving the water away quickly can have negative impacts at an environmental level.

·    A shift from the traditional thinking of stormwater being seen as a waste product with a cost, to a resource with a value as discussed within the stormwater management manual.

Five Year Prioritised Project Lists

 

Drainage

 

Although it has been stated within this Asset Management Plan that more research is needed to determine the ultimate long term renewal plan for drainage. It should also be acknowledged that certain renewal / upgrade projects are needed now to ensure that critical issues are being addressed in a timely manner.

 

It is envisaged that the areas identified within the DAMP will be assessed and rectified where practicable over the next five years. This list of priorities will no doubt evolve in line with our knowledge and understanding of the drainage network; however it provides a good starting point for knowing where the immediate priorities lie.

 

Footpaths

 

The FCAMP includes an overall list of paths that will require renewal within the first twenty years of the plan. The list is prioritised in order of when the paths are due for renewal and will be a guiding document for the annual budget deliberations.

 

Levels of Service

 

The asset management plans have been prepared in the context of maintaining the existing assets at the current level of service to the community and have also made recommendations where gaps exist between current and required levels of service.  Required levels are dictated by industry and legislative standards and/or staff knowledge and expertise of best practice.

 

Maintenance Schedules

 

Based on the current age and condition of the networks it would be extremely beneficial to implement a review of the current frequency and type of scheduled maintenance activities. This would identify any possible improvements that could be made in the scheduled maintenance of the assets. This would in turn assist in prolonging the useful lives of the assets.

For all drains, footpaths and cycle ways, existing maintenance expenditure patterns will need to be measured against what’s required into the future. This will provide an insight into whether any changes to the types of maintenance being undertaken can be funded from within the existing maintenance expenditure; or alternatively, if additional funding is required over and above what is currently being spent. 

 

Maintenance schedules should also dictate service standards based on each path or drains relative importance within the network, these service standards should be tied to a cost and balanced against both existing and proposed budgets (scenario modelling). This will allow the Council (and ultimately the community) to make informed decisions about the standard they would like for upkeep of the asset; and their willingness and/or ability to pay for it.

 

CONCLUSION

 

The asset management plans are one part of the overall integrated planning process and provide a valuable link between the day to day management of the assets and the long term planning documents relating to these assets.

 

They are prepared in the context of continuous improvements and as such are subject to review and update to ensure their currency. They provide detailed information at a point in time and set the framework for ongoing effective management of infrastructure assets at the City of Busselton.

 

The assessment undertaken within the Asset Management Plans has not shown any current backlog of renewal works for drainage, footpaths or cycle ways. What is has shown however, is the need for dealing with the here and now, whilst at the same time reviewing, researching and planning for the future.

 

As more research is undertaken and more is known about the current state of the drainage network, and more importantly; the costs associated with any large scale renewal, then it is likely that the City will be required to direct more funds to renewal, or undertake rationalisation where practicable.

 

The footpath and cycle ways network needs to be managed with a balance of renewal and new as well as ongoing review of the existing networks. This will allow the City to determine if there are any options for rationalisation within the networks.

 

The Asset Management Plans for drains, footpaths and cycle ways provide a good initial snap shot of the state of the respective networks. They will require review and update over time to ensure the Cities current and future renewal obligations are being captured and catered for.

 

OPTIONS

 

Council could choose not to adopt the asset management plans at this juncture; however this may hinder the City’s integrated planning compliance.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

The implementation of the Asset Management Plans would be effective immediately upon adoption of the officer’s recommendation.

 

OFFICER RECOMMENDATION

 

That the Council:

 

1.         adopts the individual asset management plans for Drainage and Footpaths and Cycle Ways.

 

2.            endorses the development of a Policy detailing the mechanics of administering and accounting for the funding for Drainage, Footpaths and Cycle Ways. and subsequent expenditure.

 

 Note: The Committee felt that it was necessary to provide clarity in relation to the specific items included in the policy and that a funding model be incorporated to address any potential funding gaps associated with repairs required (in the future) for new footpaths within the City.

 

 

Committee Recommendation and Council Decision

C1406/152    Moved Councillor G Henley, seconded Councillor J Green

 

That the Council:

 

1.         adopts the individual asset management plans for Drainage and Footpaths and Cycle Ways.

 

2.            endorses the development of a Policy (to be presented to Council prior to 31 December 2014) that provides a framework for the ongoing provision of Footpaths and Cycle Ways.  The policy is to include:

·    Details of the overall funds required to be directed towards footpaths and cycle ways over a period of 50 years;

·    The intended split between new and renewal expenditure and timeframes around the construction of the current prioritised list of new footpaths and cycle ways;

·    Identification of any future funding gaps (caused by spikes in expenditure); and

·    Details of how any future funding gaps will be met.

CARRIED 8/0

EN BLOC

  


Council                                                                                      25                                                                      25 June 2014

6.               Planning and Development Services Report

Nil


Council                                                                                      27                                                                      25 June 2014

12.             Engineering and Work Services Report

12.1           REGIONAL STRATEGIC WASTE MANAGEMENT PLAN

SUBJECT INDEX:

Waste

STRATEGIC OBJECTIVE:

Infrastructure assets are well maintained and responsibly managed to provide for future generations.

BUSINESS UNIT:

Operations Services

ACTIVITY UNIT:

Waste Management

REPORTING OFFICER:

Waste Coordinator - Vitor Martins

AUTHORISING OFFICER:

Director, Engineering and Works Services - Oliver Darby

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Strategic Waste Management Plan   

  

 

PRÉCIS

 

A scoping study for a regional (shared) landfill facility between the Shire of Augusta Margaret River and City of Busselton was prepared in early 2013. A working group has been designated by CapeROC, among other tasks, to seek funding under the Regional Funding Program for waste infrastructure to develop under a regional arrangement.

 

The application for waste infrastructure funding under the Regional Funding Program requires that the regional group lodges a Strategic Waste Management Plan with the Department of Environment Regulation, after endorsement by all Councils involved.

 

The purpose of the current report is threefold: (1) to endorse Vidler Rd. as the preferred landfill site for further development, while securing Ridge Rd. as a strategic prospective waste site for the long term; (2) to endorse the Capes Region Strategic Waste Management Plan (Attachment A) that will provide direction for new waste management infrastructure and services in the region for the period 2016-2020 and is a requirement for obtaining funding under the Regional Funding Program and (3) to approve submission for $6.9 million waste infrastructure funding application under the Regional Funding Program.

 

 

BACKGROUND

 

CapeROC resolved at the July, 2013 meeting to endorse, among other items, further investigation and progression of a regional landfill facility and that a Regional Landfill Working Group be formed comprising key officers from both Local Governments.  It also endorsed staff to seek external funding to assist with the next stage of works.

 

The major existing funding program is the Regional Funding Program (RFP). This is a five year funding program that supports regional groups of local governments across Western Australia in the implementation of Strategic Waste Management Plan priorities.

 

The Waste Authority is a statutory body comprising five members appointed by the Governor on the recommendation of the Minister for Environment and is responsible for managing the Regional Funding Program.

 

In December 2013, the Capes Regional Group comprised of the City of Busselton and the Shire of Augusta-Margaret River was registered with the Waste Authority as the first step towards a possible funding application under the RFP.

 

CapeROC resolved at the January 2014 meeting to seek funding from the Waste Authority in the current funding round of the RFP to undertake a Strategic Waste Management Plan for the Capes region, that will provide a direction in regards to waste infrastructure and combined waste initiatives to increase diversion from landfill in the region

 

At the same meeting, a preferred regional site identified as Ridge Road was endorsed, subject to further investigation and to the de-proclamation of the site as part of the Margaret River public drinking water source areas (PDWSA). The geotechnical survey undertaken during March-April 2014 concluded that the shallow groundwater would determine significant development costs as a waste landfill due to the special engineering requirements associated with this particular site. However, Ridge Rd. is still needed as it provides an important option as a future strategic site, and City officers are continuing to work with the Department of Parks and Wildlife to acquire the land.

 

In March 2014 a funding contract agreement was signed between the Waste Authority and the City of Busselton as the leading local government of the regional group to support the development and endorsement of the regional Strategic Waste Management Plan.

 

In the meantime, given the possibility of expansion of the existing Vidler Rd. site, CapeROC resolved at the May 2014 meeting, to progress further study of this site as a regional landfill. The regional group was also discussed at this meeting, and while the Shire of Augusta-Margaret River was intent on finalising their own waste management strategy with a consultant prior to committing to a regional strategy, City of Busselton officials were given the task of preparing a regional waste strategy for endorsement by both Councils, should the Shire of Augusta-Margaret River support the regional arrangement in due course.

 

This report supports the Council decision for endorsing the Capes Region Strategic Waste Management Plan which includes a set of proposed projects to submit to the Waste Authority for funding under the RFP.

 

STATUTORY ENVIRONMENT

 

The provision of waste management services by Local Government is regulated by the Health Act 1911 and Part 6, Division 1 of Waste Avoidance and Resource Recovery Act 2007 (WARR Act), according to which a local government may provide, or enter into a contract for the provision on its behalf of, waste services.

 

RELEVANT PLANS AND POLICIES

 

The City does not have a specific policy relating to any regional waste management arrangement.

 

FINANCIAL IMPLICATIONS

 

One of the key benefits in a regional waste initiative is the potential to gain substantial funding from the Waste Authority both in terms of formative documentation and strategies and development of infrastructure.

 

The Waste Authority provides ongoing funding for Regional Council Groups (RCGs) of two or more local government authorities working together who wish to prepare, review or update Strategic Waste Management Plans. The Regional Funding Program utilises funds available from the Western Australian Government’s Waste Avoidance and Resource Recovery Account (WARR Account) that is administered under the Waste Avoidance and Resource Recovery Act 2007 (WARR Act).

 

If the strategy is endorsed by both Councils and the Department of Environment Regulation and the proposed projects are deemed as eligible by the Waste Authority, these projects may be funded under the RFP. This is a competitive bid funding stage where RCGs will compete for funds for projects which demonstrate best value for money and alignment with State’s waste diversion targets, meaning that funding is not guaranteed at the outset.

 

Also, according to the program guidelines, a minimum cash contribution of 20% of the cost of the project would still be required from RCGs and cccording to RFP guidelines preference will be given to projects that contribute above the minimum (20%) contribution.

 

Overall regional investment projects proposed in the Strategic Waste Management Plan are as follows:

 

Strategic projects

Capital

($)

New best practice regional landfill (cells 1 to 5 at Vidler Rd.)

8,500,000

Community Recycling and Waste Transfer Station at Rendezvous Rd.

1,855,000

Community Recycling and Waste Transfer Station at Davis Rd.

1,875,000

Construction and demolition waste recycling plant (impact crusher and jaw crusher excavator)

1,200,000

Garden composting/worm farming (composting bins and mobile garbage bin audit)

140,000

Cardboard sorting plant (power connection, excavator grabber attachment, baler, bins and shed)

185,000

TOTAL

13,755,000

 

To improve the chances of obtaining funding it is proposed that the CapeROC RCG will seek funding of up to 50% from the Waste Authority for each of the above mentioned projects, amounting to a total of $6.9million.

 

According to the program guidelines all projects funded through the regional Funding Program must be fully implemented, funds expended and final reports submitted by 31 March 2016, meaning that the bulk of the capital outlays would need to be incurred during 2014-2015.

 

Additional estimated labour requirements for the City of Busselton in accordance with the proposed projects would be as follows:

 

Strategic projects

FTE

Cost

(additional)

($ per annum)

New best practice regional landfill (cells 1 to 5 at Vidler Rd.)

0

0

Community Recycling and Waste Transfer Station at Rendezvous Rd.

1.5

90,000

Construction and demolition waste recycling plant (impact crusher and jaw crusher excavator)

0.5

30,000

Garden composting/worm farming (composting bins and mobile garbage bin audit)

0

0

Cardboard sorting plant (power connection, excavator grabber attachment, baler, bins and shed)

1

60,000

TOTAL

3

180,000

 

The Governance model for a regional arrangement is not yet finalised. Therefore, a long term services provision contract between the City of Busselton and the Shire of Augusta-Margaret River is still required.

 

STRATEGIC COMMUNITY OBJECTIVES

 

The City’s 2013 Strategic Community Plan identifies one of its key goal areas as “Cared For and Enhanced Environment”, under which it supports the development and implementation of a strategy for the responsible provision of waste management services.

RISK ASSESSMENT

 

If the Strategic Waste Management Plan is endorsed and funding is approved, the major risk associated is the inherent risk of a partnership with the Shire of Augusta-Margaret River, including the possibility of not continuing with the commitment once the funds have been allocated and/or projects have been initiated.

 

To reduce this risk a long-term contract agreement needs to be put in place specifying the rights and responsibilities of each Regional Council Group member and committing to a long term mutually agreed cooperation scheme.

 

Another relevant risk is the possibility of the Waste authority will approve funding for some but not all projects, and that the major project – the regional waste landfill – would not get the funding requested. This risk, however, would still make the funding submission successful, if only in part.

 

CONSULTATION

 

The Shire of Augusta-Margaret River was consulted in relationship to the Strategic Waste Management Plan. Although that document has not been before the Council it is expected that the Shire will endorse it so that it will be submitted under the RFP as a regional cooperation project.

 

OFFICER COMMENT

 

The attached Capes Region Strategic Waste Management Plan presents the strategic regional projects to be submitted for the period 2016-2020. It was initiated having in mind the shared need to pool the resources of both of CAPEROC’s member in order to work towards achieving the State’s recycling targets.

The document develops the applicable strategic framework from the requirements set forth by National and State policy and regulations as well as relevant local policies.

A shared vision of the waste challenges, now and in the future, was established. Together with the strategic principles and an assessment of the relevant regional context in terms of demographics, waste production dynamics and review of current infrastructure and services, that Vision supports a set of options for waste reduction, management and disposal.

Given all that foundational background, the region’s strategic waste management plan was formulated so as to include the regional priorities and related strategic objectives. Regional priorities and strategic objectives identified were as follows:

Regional priorities

Strategic objectives

Adopting regional recycling and resource recovery solutions in line with sustainable waste management practices, working towards State waste recycling targets;

 

·      Improve recycling and resource recovery in line with State recycling targets and best practice guidelines, thus reducing reliance on landfill for waste disposal (waste diversion), community, C&D, green waste/organics

Engaging the regional economy in waste avoidance, reuse and recycling.

 

·      Engage local/regional recycling companies and charities in waste avoidance, reuse and recycling.

Implementing best practice and continuous improvement of waste management infrastructure and operations across the region.

·      Secure best practice waste transfer and disposal infrastructure for residual waste well into the future.

·      Improve efficiency of waste management operations, in line with intended service levels.

·      Improve waste management information for decision-making.

 


 

Empowering and engaging the Community in waste avoidance and recycling.

·      Improve community education, engagement and participation.

From the regional priorities and strategic objectives identified, and based on the review of current services and an assessment of available recycling and disposal options, a set of key projects was selected. These are the strategic projects referred to above (Financial Implications section).

In summary, the Capes Region Strategic Waste Management Plan proposes a focus on the development of a best practice strategic waste landfill site at Vidler Rd. (on existing City land) with a lifetime in excess of 20 years to operate on a regional basis, as well as two best practice community recycling and transfer station sites and recycling projects to divert construction and demolition waste, cardboard and organic waste from landfill, in line with the Waste Authority’s targets.

The Strategic Waste Management Plan also provides guidance for further development in the future, giving consideration to projects based on energy recovery and recycling of organic waste beyond 2020.

The potential to gain substantial funding from the Waste Authority is the major driver to prepare a Regional Council Group submission under CapeROCin accordance with the proposed strategy.

The Shire of Augusta-Margaret River is expected to endorse the regional Strategic Waste Management Plan and related Regional Investment Plan. However, the Regional Council Group governance model, as well as service levels and financial arrangements (gate fee) still need to be defined and agreed upon on a long term contract concerning the regional waste partnership under CapeROC.

Should the Shire of Augusta-Margaret River reconsider and not endorse the regional Strategic Waste Management Plan, endorsement by the City of Busselton is still proposed and the application for funding would be submitted to the Waste Authority by the City of Busselton alone, with the appropriate adjustments (i.e. dropping the transfer station and community drop-off centre at Davis Rd. as one of the strategic projects).

 

CONCLUSION

 

A Regional Council Group application for funding under the Regional Funding Program would yield the best chance to get funding for waste management projects in line with the State’s Waste Authority targets. This requires endorsement of a regional strategic waste management plan by both Councils and by the Department of Environment Regulation and needs to be submitted by 27/6/2014 to the Waste Authority.

 

The attached Capes Region Strategic Waste Management Plan provides an appropriate foundation for the development of regional waste services and infrastructure for the period 2016-2020 and sets the general guidelines for further development beyond that period.

 

OPTIONS

 

The Council might decide not to pursue the regional strategy, in which case it would forgo the opportunity to submit an application for regional funding worth $6.9 million for the region, for a total capital outlay of $13.8 million.

 

The Council might decide to amend the regional strategic waste management plan, in which case there would be a risk of not having it submitted within the applicable deadline of 27/6/2014.

 


 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

The following implementation timeline is proposed:

 

Council endorsement....................................................................................................... 25/6/2014

Submission to Waste Authority......................................................................................... 27/6/2014

Funding contract signed.................................................................................................... 31/7/2014

Design tenders issued....................................................................................................... 15/8/2014

Design tenders awarded................................................................................................... 15/9/2014

Construction tenders issued............................................................................................ 31/10/2014

Construction tenders awarded........................................................................................ 24/12/2014

All projects to be completed and funds expended............................................................ 18/12/2015

 

 

Officer Recommendation and Council Decision

C1406/153    Moved Councillor G Henley, seconded Councillor J Green

 

That the Council:

 

1)    adopts Vidler Road as the preferred site for waste landfill development, while securing Ridge Rd. as a strategic prospective waste site for the long term;

 

2)    endorses the Capes Region Strategic Waste Management Plan 2016-2020;

 

3)    seeks $6.9 million worth of funding for waste infrastructure for the region by submitting an application during the current funding period under the Regional Funding Program, in cooperation with the Shire of Augusta-Margaret River.

CARRIED 8/0

en bloc

 


Council                                                                                      33                                                                      25 June 2014

12.2           ADDENDUM TO SCHEDULE OF FEES AND CHARGES

SUBJECT INDEX:

Operations Services

STRATEGIC OBJECTIVE:

An organisation that is managed effectively and achieves positive outcomes for the community.

BUSINESS UNIT:

Operations Services

ACTIVITY UNIT:

Waste Management

REPORTING OFFICER:

Waste Coordinator - Vitor Martins

AUTHORISING OFFICER:

Director, Engineering and Works Services - Oliver Darby

VOTING REQUIREMENT:

Absolute Majority

ATTACHMENTS:

Nil

  

PRÉCIS

 

The schedule of fees and charges for the 2014-15 financial year was approved by Council on 28 May 2014. This included new fees for domestic Sorted and Unsorted Waste at the Busselton Transfer Station and Dunsborough Waste Facility, to provide residents with a financial incentive to recycle as much of their waste as possible.  Unfortunately, fees for commercial Sorted and Unsorted Waste were omitted from the schedule.  The proposed commercial fees are presented here for Council’s consideration, in alignment with the domestic fee proposal.

 

 

BACKGROUND

 

Section 6.16 of the Local Government Act (the “Act”) states that a local government may impose and recover a fee or charge for any goods or services it provides or proposes to provide, other than a service for which a service charge is imposed.

 

Section 6.17 of the Act further states that in determining the amount of a fee or charge for goods and services, a local government is to take into consideration the following factors:

 

a)    The cost to the local government of provide the service or goods

b)    The importance of the service or goods to the community; and

c)    The price at which the service or goods could be provided by an alternative provider

 

Section 6.18 of the Act clarifies that if the amount of any fee or charge is determined under another written law, then a local government may not charge a fee that is inconsistent with that law.

 

The above matters have been considered as part of the annual fees and charges review.

 

Up to and including the 2013-14 financial year, the Council’s fees and charges for waste disposal included a fee for domestic Contaminated Green Waste (green waste mixed with other waste).  This fee was $16.00 for a small trailer of waste and $30.00 for a large trailer of waste, whereas the fee for domestic General Waste was $6.00 for a small trailer and $12.00 for a large trailer.  The purpose of the Contaminated Green Waste fee was to encourage residents to separate their green waste from other waste, and to minimise waste to landfill.

 

In practice, this amounts to incorporating both landfill airspace scarcity and the externality of the environmental impact of organics in landfill (odour, leachate and landfill gas generation) in the pricing signal associated with green waste disposal. In turn, this is in line with the widely accepted polluter-pays principle and the use of economic instruments in environmental policy and regulation to promote environmentally responsible behaviours, by incorporating external (societal) cost into private (individual) decision-making.

 

As such, in drawing up the proposed schedule of fees for 2014-15, officers recommended that the principle of the Contaminated Green Waste fee be broadened to include all recycled material in general waste, in order to give an incentive to recycle on a larger scale.  The fees for domestic General Waste of $6.00 and $12.00 have been retained but have been redefined as Sorted General Waste (i.e. waste containing no recyclable material), while new fees for Unsorted General Waste (instead of Contaminated Green Waste, and containing material which could be recycled) have been introduced, these being $20.00 for a small trailer and $40.00 for a large trailer.

 

However, these new fees, ratified by Council on 28 May 2014, are for domestic waste only.  The purpose of this report is to propose fees for commercial waste (Sorted and Unsorted) in line with the increases in domestic waste (Sorted and Unsorted).

 

It is proposed:

 

a)    to retain the fee for General Commercial Waste as $11.00 (small trailer) and $22.00 (large trailer) and

b)    to redefine the Commercial Waste fee as Sorted Commercial Waste, and

c)    to introduce new fees for Unsorted Commercial Waste, these being $25.00 (small trailer) and $50.00 (large trailer).

 

STATUTORY ENVIRONMENT

 

Sections 6.16 – 6.19 of the Act refer to the imposition, setting the level of, and associated administrative matters pertaining to fees and charges.  The requirement to review fees and charges on an annual basis is detailed within Regulation5 of the Local Government (Financial Management) Regulations. 

 

RELEVANT PLANS AND POLICIES

 

The Council’s endorsed Long Term Financial Plan reflects an annual increase in Fees and Charges revenue of 4.2% (the 10 year average Local Government Cost Index).  However, these new fees for Unsorted Waste are much larger than the 4.2% increase because they represent a whole new pricing strategy approach to give financial incentives to residents and businesses to recycle their waste.  The new fees for Unsorted Waste are, in general, about three times as great as the fees for Sorted Waste (which are unchanged from last year’s fees for General Waste).

 

FINANCIAL IMPLICATIONS

 

In terms of the Council’s currently adopted budget, revenue from fees and charges (excluding waste collection charges) equates to approximately 21% of budgeted rates revenue and 13% of total operating revenue (excluding non-operating grants).  As such, fees and charges form an integral component of the City’s overall revenue base. The previous fees for Contaminated Green Waste were applied sparingly and represented only a fraction of one per cent of the revenue accrued by waste disposal fees and charges.  At the time of writing this report it is unknown to what extent the new fees for Unsorted Waste will have on altering behaviour in the community when it comes to disposing of waste and the extent to which total revenue and average revenue per customer will change.

 

STRATEGIC COMMUNITY OBJECTIVES

 

The schedule of fees and charges adopted by the Council encompasses “whole of organisation” activities.  As such, all Key Goal Areas within the Council’s Strategic Community Plan 2013 are in some way impacted. More specifically however, this matter aligns with Key Goal Area 6 – “Open and Collaborative Leadership” and particularly Community Objective 6.3 – “An organisation that is managed effectively and achieves positive outcomes for the community”.

 

RISK ASSESSMENT

 

There are several risks that the Council needs to be mindful of when reviewing its schedule of fees and charges.

 

The major risk of the Council approving this proposal is that commercial operators will divert their waste streams from the City’s disposal facilities altogether.

 

Currently, revenue from charges to private operators at the waste facilities is around $1.23 million ($1.1 million at Dunsborough Waste Facility and $130,000 at Busselton Transfer Station).

 

The proposed decision may theoretically result in a net reduction in revenue. But since it will affect only waste loads transported in trailer and not high tonnage trucks, no significant revenue loss is expected.

 

CONSULTATION

 

No consultation was undertaken.

 

As part of the review process, consultation may occur with other local government authorities, in addition to a review of prices offered by alternative service providers (pursuant to Section 6.17 of the Act).

 

OFFICER COMMENT

 

The fees for commercial Unsorted Waste are higher than those for domestic Unsorted Waste, in keeping with the previously established fees for General (Sorted) Waste.  While still reasonable, the new fees represent a strong incentive for businesses to recycle and are, therefore, proposed for adoption.

 

CONCLUSION

 

The new fees for Sorted and Unsorted Waste are intended to reduce waste to landfill, and will send a strong signal to the community (both domestic and commercial) that it pays to recycle.

 

OPTIONS

 

The Finance Committee may determine to recommend amendments to proposed Fees and Charges as it deems appropriate, including the decision not to revise Commercial rates in accordance with this proposal, in which case commercial users disposing of unsorted waste would be favoured in comparison to domestic users.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

While the schedule of Fees and Charges passed by Council on 28 May 2014 will come into effect on 1 July 2014, a seven-day period of advertising is required in order for this new fee to take effect.  Consequently, if these new fees for commercial Sorted and Unsorted Waste are passed by Council on 25 June 2014 and they are advertised the following week, they will come into effect on 9 July 2014.

 

 

 

OFFICER RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That the Council:

 

1.         Endorses the addenda to Fees and Charges with respect to the new fees for commercial Sorted and Unsorted Waste being introduced on 2 July 2014, as follows:

 

DESCRIPTION

ADOPTED FEE

2013/14

(Exc. GST)

DRAFT FEE

2014/15

(Exc. GST)

DRAFT FEE

2014/15

(Inc. GST)

Commercial General Waste (6x4 trailer)

$11.00

N/A

N/A

Commercial General Waste (Over 6x4)

$22.00

N/A

N/A

Commercial General Waste (Sorted and Separated, 6x4 trailer)

N/A

$10.00

$11.00

Commercial General Waste (Sorted and Separated, Over 6x4 trailer)

N/A

$20.00

$22.00

Commercial General Waste (Unsorted, Containing Recyclables, 6x4 trailer)

N/A

$22.73

$25.00

Commercial General Waste (Unsorted, Containing Recyclables, Over 6x4)

N/A

$45.45

$50.00

 


Council                                                                                      37                                                                      25 June 2014

12.3           AWARD OF TENDER RFT06/14 PROVISION OF GREEEN WASTE PROCESSING AND RECYCLING

SUBJECT INDEX:

RFT06/14

STRATEGIC OBJECTIVE:

Environment and climate change risks and impacts are understood and managed.

BUSINESS UNIT:

Operations Services

ACTIVITY UNIT:

Waste Management

REPORTING OFFICER:

Waste Coordinator - Vitor Martins

AUTHORISING OFFICER:

Director, Engineering and Works Services - Oliver Darby

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Confidential Tender Evaluation   

  

PRÉCIS

 

The Council is requested to consider the tenders received in response to Request for Tender RFT06/14 – Provision of Green Waste Processing and Recycling Services.  The purpose of this report is to obtain the Council’s consent to award Tender – RFT06/14 to Geospread in accordance with the Tender Evaluation Panel recommendation.

 

 

BACKGROUND

 

RFT06/14 specified the requirements of the City and invited suitably experienced Respondents to submit bids to enter into a Contract for the Provision of Green Waste Processing within the City of Busselton for a period of five (5) years with the option of a one (1) year extension, at the absolute discretion of the City, and under the same terms and conditions as for the original term.

 

Two (2) submissions were received in response to this Request for Tender.  Submissions were received from Geospread (who are based in the City of Busselton) and Western Tree Recyclers (who are based in Perth).

 

Both submissions addressed Option A, which was compulsory, providing prices for the downsizing and grinding of green waste at the City’s waste facilities and other selected locations. 

 

The tender also provided an opportunity for submissions for the composting of green waste at the City’s waste facilities by a licensed composter (Option B), and a further option (Option C) for the processing of green waste at a licensed composting facility.  Neither Option B nor Option C was fulfilled by either submission.

 

The review process of both submissions for RFT06/14 has been completed by the Tender Evaluation Panel that comprised the following City Officers: -

·    Vitor Martins                    Waste Coordinator

·    Allan Miller                        Waste Management Officer

·    Mark Tyler             Contracts & Tendering Officer

 

STATUTORY ENVIRONMENT

 

Part 4 (Tenders) of the Local Government (Functions and General) Regulations 1996 apply.  Tenders are to be publicly invited according to the requirements of the Division before a local government enters into a contract for another person to supply goods or services if the consideration under the contract is, or is expected to be, more, or worth more, than $100 000.

 


 

RELEVANT PLANS AND POLICIES

 

The following Council policies have relevance to the Tender process:

 

Policy 239 – Purchasing:

The procurement process complies with this policy.

 

Policy 049/1 – Regional Price Preference:

The Regional Price Preference was applied to this tender.

 

Policy 031 – Tender Selection Criteria:

The procurement process complies with this policy.

 

FINANCIAL IMPLICATIONS

 

The cost of services within this tender are provided for in capital works and operational budgets for each financial year.  Purchasing under this contract will be in accordance with these adopted budgets.

 

In addition, the tendered price is fixed over the contract duration (2014-2019). There will be no CPI increase as the tender outlines it is a fixed price.

 

The previous tender for processing green waste at the waste facilities, from 2010-2013, was awarded to Perth-based Grass Growers, at rates of $5.00 (ex GST) to process mulch (flat rate, no CPI increase).

 

The equivalent CPI increase for 7 years (4 year since the last tender date plus 3 years to mid 2014-2019 period of the current tender, which is the appropriate time frame for the purpose of comparison with the new contract fixed price) would be:

 

$ 5.00 x (1.035)7 = $6.36 per cubic metre (ex. GST)

 

In addition, the last similar services (in March this year) were provided by Geospread at an average spot rate of $ 9.34 per cubic metre.

 

A reasonable price range for the service would, thus, be somewhere between $6.36 (long term contract) and $9.34 (spot rate).

 

Proposed unit price under the current tender is $7.00 (ex. GST), which is well within that range and, in fact, closer to the lower bound, as expected. The new tender price is thus well within the acceptable market price range.

 

In any event, application of appropriate selection criteria to the tender has contributed to ensuring that tenderers are offering the “best value” with respect to the supply of services is highlighted via the tender assessment process.

 

STRATEGIC COMMUNITY OBJECTIVES

 

Key Goal Area 5:                  Cared For and Enhanced Environment.

 

Community Objective 5.3:            Environment and climate change risks and impacts are understood and managed.


 

RISK ASSESSMENT

 

The key risk identified is that the City is not able to have its green waste processed in a timely manner by Geospread (for example due to lack of inventory or in the event of the insolvency of Geospread). This could result in the City being required to retender for the supply of green waste processing, which could result in a large stockpile of green waste at the City’s waste facilities and the potential to run out of space for storing green waste while the tender process is being conducted again.

 

The risk has been categorised as an M9 risk (an unlikely risk, which could have a moderate operational consequence).  This risk has been assessed as unlikely to occur because Geospread is a well-established company with a sound financial position (which has been independently assessed by Geospread’s accountants). Geospread demonstrated in its tender that it has sufficient inventory to fulfil the requirements of the tender, that it has the financial capacity to fulfil the contract, and that the risk of insolvency is low.

 

If Geospread is unable to fulfil the requirements of the tender, there may be an opportunity to source the supply of green waste processing from an alternative supplier such as Western Tree Recyclers.

 

CONSULTATION

 

The request for tender was publicly advertised in The West Australian.

 

OFFICER COMMENT

 

As part of the tender evaluation process an initial compliance check was conducted to identify submissions that were non-conforming with the immediate requirements of the RFT.  This included compliance with contractual requirements and provision of requested information (clarification of mobilisation and demobilisation costs, and confirmation of the ability to process green waste within one month of being awarded the tender).  Both tender submissions were found to be compliant with the specified requirements.

 

The assessments of the tenders were based on the following Qualitative Criteria as included in the Request for Tender Document:

 

·    Relevant Experience: 10% - a review of relevant work experience, including relevant referees.

·    Key Personnel Skills and Experience: 10% - qualifications and experience of key operators.

·    Tenderer’s Resources: 10% - detailing the company’s ability to fulfil the contract requirements.

 

The Tendered price was given the following weighting and has been assessed in conjunction with the Qualitative Criteria.

 

·    Tendered Price: 70%

 

When combining the tendered price in conjunction with the qualitative criteria detailed in Part 6 – Tenderer’s Offer, the submission from Geospread represented the best value for money for the City of Busselton.

 

The summary of the tender valuation is as presented in attachment.

 

It should be noted that the Regional Price Preference broadened the gap, but did not change the outcome, between Geospread and Western Tree Recyclers  in the recommendation to award the tender to Geospread.  The financial analysis of the tender over the full five-year period of the contract resulted in Geospread (a City of Busselton-based business) being awarded the maximum deduction allowable of $50,000, thereby giving it a significant advantage over the tender offer from Western Tree Recyclers.

 

CONCLUSION

 

This report seeks the Council’s endorsement of the officer’s recommendation to award the Contract to Geospread.  The Company’s submission represents the best value for money for the City of Busselton and clearly demonstrates the Company’s ability to fulfil the contract requirements to an acceptable City standard and at a competitive industry price.

 

OPTIONS

 

The Council could decide not to award the contract, in which case green waste would have to be stockpiled until further decision. This is not recommended, as large stockpiles of green waste represent a significant fire hazard, and stockpiling capacity is now close to the limit.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

The award of the tender to the successful tenderer can be announced immediately after the Council has endorsed the officer’s recommendation. The successful tenderer will receive formal written notification within seven (7) days of the decision being handed down.  The unsuccessful tenderer will also be notified in this time.

 

 

OFFICER RECOMMENDATION

 

That the Council:

 

Award the Contract resulting from RFT06/14 – “Provision of Green Waste Processing and Recycling Services” to Geospread in accordance with the terms and conditions contained within the tender for a period of five (5) years from the date of award, with the option of a one (1) year extension.

 

  


Council                                                                                      41                                                                      25 June 2014

7.               Community and Commercial Services Report

13.1           DUNSBOROUGH FORESHORE CAFÉ AND/OR KIOSK:  STRATEGIC REVIEW OF ALTERNATIVE SITES

SUBJECT INDEX:

Dunsborough Foreshore Concept Plan

STRATEGIC OBJECTIVE:

A City of shared, vibrant and well planned places that provide for diverse activity and strengthen our social connections.

BUSINESS UNIT:

Commercial Services

ACTIVITY UNIT:

Commercial Services

REPORTING OFFICER:

Economic and Business Development Coordinator - Jon Berry

AUTHORISING OFFICER:

Director, Community and Commercial Services - Naomi Searle

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Summary of Public Comments  

Attachment b    Proposed Containment Zone for Cafe / Kiosk  

  

PRÉCIS

 

At its 12 March 2014 meeting, Council resolved (C1403/055) to support for the purposes of community consultation, a proposed containment zone on the Dunsborough foreshore (‘A Class’ Reserve Number R22965), for potential future commercial development of a café and/or kiosk up to 150m2 plus 50m2 alfresco area. The resolution resulted from a strategic review of alternative sites for a café and/or kiosk conducted by the City of Busselton in consultation with the Dunsborough Yallingup Chamber of Commerce and the Dunsborough and Districts Progress Association.

 

Council also resolved that if the community is generally supportive of the proposed site and use that it would seek registrations of interest from the private sector to develop a café and/or kiosk that meets evaluation criteria adopted at the 12 March 2014 meeting.

 

This report outlines the results of public consultation on use of the proposed containment zone for a café and/or kiosk.  Based on the public comments received, it is recommended that the Council endorses the nominated containment zone (as shown at Attachment B) for a café and/or kiosk on the Dunsborough foreshore (‘A Class’ Reserve Number R22965), with a potential building footprint of 150sqm plus an alfresco area of 50sqm.  The report also recommends Council authorise the CEO to write to the Minister for Lands requesting an amendment to the management order to provide the City with the power to lease a portion of ‘A Class’ Reserve Number R22965.  It also recommends the City contiguously advertise for preliminary registrations of interest from the private sector to lease a portion of ‘A Class’ Reserve Number R22965 for the purposes of establishing a commercial café and/or kiosk.

 

 

BACKGROUND

 

In January 2010 (C1001/018), Council endorsed ‘in principle’, the Dunsborough Foreshore Concept Plan initiated by the Dunsborough Yallingup Chamber of Commerce and Industry (DYCCI) as a master plan for redeveloping the Dunsborough foreshore, being ‘A Class’ Reserve, (Number R22965) located at the  junction of Dunn Bay Rd and Geographe Bay Rd.  The original master plan included a café to the east of the redevelopment area at the site of the existing ablution block and car-park.

 

On 13 June 2012 (C1206/144) Council further considered the concept of establishing a café and/or kiosk  on  the  foreshore  and  unanimously  resolved  to  endorse,  in  principle,  two  sites  for  the development of a café or kiosk and to advertise for Expressions of Interest for development, prior to making any further determinations.  

 

In October 2012, an Expressions of Interest (EoI) document was issued and advertised widely for three months. The advertising resulted in no submissions for the site located at the ablution block/car park (to the east of the redevelopment area) and three submissions for a development near the junction of Dunn Bay Road and Geographe Bay Rd. All concepts were greater than 150m2 (as was initially recommended in the EoI document as a guide). Two of the respondents subsequently withdrew, citing concerns about seasonality (increasing commercial risk), building costs and commitment to their existing undertakings).  Council subsequently selected a preferred proponent to develop a concept for a café and/or kiosk.

 

In November 2013 public submissions on the preferred proponents’ concept were sought and considered by Council, with the matter being highly contentious, particularly in relation to the proposed site being within the newly turfed redevelopment area and the size of the proposal considered too large. On 27 November 2013 Council resolved (C1311/307), that there be no commercial development on any of the identified sites on the Dunsborough foreshore between Dunn Bay Road and Chester Way and that the City not proceed with any further concepts at that stage.

 

In early 2014, the City of Busselton conducted a strategic review of alternative sites to locate a café/kiosk on the Dunsborough foreshore.  The review was undertaken in consultation with the Dunsborough Yallingup Chamber of Commerce and Industry Inc and the Dunsborough and Districts Progress Association Inc.  In conducting the review, the following criteria were considered in order to identify a ‘containment zone’ shown at Attachment B:

•          Adequate Space

•          Risk of Erosion       

•          Risk of Inundation

•          Impact on utility services

•          Parking availability

•          Indigenous Heritage

•          Removal of Vegetation

•          Impact on community recreational space

•          Low impact on view corridors

•          Views of the bay (likely impacts on commercial success / appeal)

 

At its 12 March 2014 meeting, Council resolved (C1403/055) to:

 

1.             Support, for the purposes of community consultation, the proposed containment zone (refer Attachment B to this Agenda report) for potential lease for commercial development of a café and/or kiosk up to 150m2 plus up to 50m2 alfresco area and seeks:

 

a.                  public comments on the containment zones for use as a commercial café and/or kiosk, and if the Council forms the opinion that the community is supportive of the site and its proposed use;

b.                 registrations of interest (RoI) from the private sector to develop a café and/or kiosk for further consideration by Council.

 

 

2.             Endorses the evaluation criteria to assess proposals received through the RoI process if undertaken as:

 

1.    Physical planning and urban design

§ The height of proposed café and/or kiosk buildings is single storey

§ Building covered area limited to 150m2 and up to 50m2 of alfresco area

§ Structures to be open and visually permeable

§ Location to be within the containment zones

§ Suitable building materials and colours that reflect the natural environment of the site

§ No walls, gates or fences dividing individual buildings or areas

§ Retains the ambience of the Dunsborough foreshore

§ Buildings/Development are ‘complementary’ and ‘sympathetic’ to Dunsborough’s heritage, history and culture

 

2.    Environmentally Sustainable Design

§ The design of buildings to incorporate mitigation measures to avoid flooding and avoid or mitigate adverse impacts from coastal erosion

§ Environmentally sustainable building principles would be viewed favourably

§ Using natural, durable materials to cope with the natural environment

§ Restrict removal of native vegetation [(e.g. WA Peppermints (Agonis flexuosa) and Rottnest Teatree (Melaleuca lanceolata)]

§ Revegetating areas (where vegetation is removed) with native vegetation

§ Consideration of the principles of sustainability

 

3.    Public interest

§ Acknowledgement that all future commercial development on the foreshore will be on a leasehold basis (not freehold), so the land remains at all times in public ownership.

§ Initial lease length for a café style building to a maximum of 20 years, with negotiation possible for a further option

 

STATUTORY ENVIRONMENT

 

The following statutory requirements are relevant in considering this matter.

 

Land Administration Act 1997

 

The containment zone is located on Crown land being an ‘A’ Class reserve (Reserve 22965) which is vested with the City for the purposes of ‘Camping and Recreation’, without the power to lease. The Department of Lands has previously advised that dependent upon the final size, design and impact of the proposal on the overall reserve, there may or may not be a requirement to excise land from the Reserve to facilitate a café development. A smaller scale café up to 150m2 (that has a lesser impact on the Reserve) is unlikely to require an excision of land and may be leased to a proponent upon the approval of the Minister for Lands and an amendment to the management order to afford the power to lease.

 

Local Government Act 1995

 

Section 3.58 (2) states that a local government can dispose of property to the highest bidder at public auction, or to the person at public tender. Section 3.58 (3, 4) allows for the disposal of property other than by public auction or by tender.  It requires Council to give local public notice of its intention to dispose of the property, and consider any submissions which are received within the specified period.  Should Council resolve to proceed with facilitating a café/kiosk development on the Dunsborough foreshore, any future lease of a portion of Reserve 22965 will require a separate Council report to be prepared and observation of the requirements of Section 3.58 of the Act.

 

City of Busselton Town Planning Scheme (TPS No 20)

 

Rezoning of the zone identified in this report is not necessary for compliance with TPS No 20. Should Council support the future development of a café/kiosk, the site (excised or not excised) would be leased and used for a single purpose, 'cafe' or 'kiosk'. Development requirements including any additional parking requirements would be dealt with at a later stage of the process through a development approval and / or conditions on the lease as required.

 

RELEVANT PLANS AND POLICIES

 

The following plans and policies are relevant in considering this matter.

 

State Planning Policy 2.6, State Coastal Planning (SPP2.6) (Western Australian Planning Commission)

 

The Western Australian Planning Commission (WAPC) State Planning Policy 2.6, State Coastal Planning (SPP2.6) provides guidance on determining setbacks. The City of Busselton has previously engaged consultants to prepare the City of Busselton Coastal Erosion and Inundation Analysis. The Consultants have modelled the coastal erosion and inundation impacts to the year 2100 based on a low, medium and high climate change scenario. This identifies those areas that may be unsuitable for increases in density or further development due to coastal erosion in combination with elevated sea levels. Areas where upgrade/modification of existing coastal protection structures/systems or new coastal protection structures/systems will be required to protect existing public infrastructure, other than boat ramps, jetties and other marine infrastructure are also identified. Based on the information supplied from the above study, the City subsequently commissioned a Coastal Engineering Assessment of the Dunsborough foreshore. The seawall and coastal works were undertaken consistent with this study and considered adequate to provide protection for an estimated time frame of approximately 20 years with regular reviews and monitoring underway. Should Council resolve to proceed with considering a café development, a formal assessment of a future endorsed concept will be sought from relevant agencies including the Department of Lands, Department of Planning and Department of Transport

 

Dunsborough Foreshore Management Plan (2009)

 

The Dunsborough Foreshore Management Plan (DFMP) documents both the  current state and values and provides generic principles and specific actions and recommendations in order to guide future management of the Dunsborough Foreshore Reserves. Should Council resolve to proceed with facilitating the café development and seek an amendment to the management plan after community consultation on a new concept, the management plan will need to be updated to reflect the new foreshore improvements at the foot of Dunn Bay Road.

 

Aboriginal Heritage Survey for the Proposed Landscape Enhancements to Dugalup  Brook, Dunsborough Foreshore and Seymour Park (2007)

 

This report identifies the area between the foreshore redevelopment area and the toilet block/car park as former campsites for the Roelands Aboriginal Mission and recommends the area be registered under Section 5(b) and 5(c) of the West Australian Aboriginal Heritage Act (1972) as sites of historical significance in association with the connection that the land has with members of the ‘stolen generation’. For this reason, any sites between the south eastern edge of the foreshore redevelopment (not landscaped) and the existing car park and toilet block were not considered as suitable in the strategic review of alternative sites.

 

FINANCIAL IMPLICATIONS

 

Financial implications to the Council directly arising from this report relate to the cost of promoting the commercial opportunity through a registration of interest process, the cost of seeking public comment by advertising/displays and staff time incurred in managing and facilitating the project.  These costs are incorporated into the 2013/14 budget and draft 2014/15 budget.  Should Council elect to proceed with facilitating a café development and seek power to lease the Reserve from the Minister for Lands, negotiated revenue by a stepped lease payment from the proponent is proposed, should commercial interest materialize.  The Department of Lands has previously advised that any proceeds from the lease will be required to be reinvested into future management, maintenance and improvements to Reserve R22965, including coastal management.

 

There may be future financial implications for the City, should Council consider making improvements to public infrastructure in recognition of Dunsborough’s growth and specific demand generated by the café and/or kiosk proposal.  For example, additional car-parking bays could be built on Geographe Bay Road continuing south-east from the toilet block area, or a newly sealed, formed and extended car park could be constructed at the toilet-block site. Should this be required, the cost would be approximately $100,000 to create an additional nine (9) bays along Geographe Bay Road and formalise 16 bays at the toilet block site, without removing trees. A contribution to this cost may be sought from the proponent and/or use of the ground lease payments placed in a financial reserve specifically for this purpose and combined with municipal funds recognising broader public benefit of foreshore car-parking.

 

There are no anticipated additional costs to Council for the provision of infrastructure services (power, water, telecommunications) as a result of locating the café/kiosk within the proposed containment zone.  There may be a need to extend deep sewerage depending on the nature of the proposal.

 

STRATEGIC COMMUNITY OBJECTIVES

 

This item aligns with the following City of Busselton Key Goal Areas identified in the 2013 Strategic Community Plan:

 

             Key Goal Area 2:

Well-planned vibrant and active places: An attractive city offering great places and facilities promoting an enjoyable and enriched lifestyle.

2.1        A City where the community has access to quality cultural, recreation, leisure facilities and Services

2.2        A City of shared, vibrant and well planned places that provide for diverse activity and strengthen our social connections

Key Goal Area 3:

Robust local economy: A strong local economy that sustains existing and attracts new business, industry and employment opportunities.

3.1        A strong innovative and diversified economy that attracts people to live, work, invest and visit

3.2        A City recognised for its high quality events and year round tourist offerings

3.3        A community where local business is supported

 

RISK ASSESSMENT

 

Should Council elect to continue the facilitation of a café on the Dunsborough foreshore, the following risks have previously been identified.

 

Risk

Controls

Consequence

Likelihood

Risk Rating

Inundation of potential future café building resulting from storm surge

Require the building floor level to elevated above the natural ground level. 

Major

Unlikely

High

Litigation against the City resulting from flooding

Transfer risk to the proponent through lease of land instrument and requirement for building insurances

Major

Unlikely

High

CONSULTATION

 

As a result of the 12 March 2014 Council resolution (C1403/055), public submissions were invited during the period 9 April 2014 to 30 April 2014 using the following communications to invite comment:

 

·    City of Busselton website (online survey and downloadable survey form);

·    Press releases published in local newspapers;

·    Radio interview on ABC encouraging comment;

·    Liaison and meetings with stakeholder community groups (DYCCI, DDPA and DCALC);

·    Personal correspondence to nearby residents on Geographe Bay Road;

·    Advertisements in print media using Council for the Community page;

·    Information pack for public display available at the two libraries and the City of Busselton Administration reception; and,

·    Two examples of a 150sqm building footprint were marked out on-site with pegs and tape within the proposed containment zone shown at Attachment B of this report

 

153 submissions were received and provided a direct response to the question posed …”I support a cafe/kiosk (footprint up to 150sqm with additional alfresco area up to 50sqm) in the containment zone identified”.  (The map at Attachment B of this report was used to assist respondents identify the location of the containment zone)

 

91 respondents answered ‘Yes’ and 62 respondents answered ‘No’.  This equates to 60% of respondents supporting use of the containment zone for a café/kiosk and 40% not supporting such use.

 

Some of the more dominant concerns expressed included:

 

·    Lack of parking causing congestion on Geographe Bay Road

·    the containment zone generally being low-lying and possibly subject to flooding as it is close to the beach

·    Size, some concerned 150sqm was too small for a functional café, while others didn’t want a building too large on the foreshore reserve

·    Visual amenity, there was concern expressed that an organic design is needed to fit the natural environment

 

OFFICER COMMENT

 

Public submissions have demonstrated majority support for use of the containment zone shown at Attachment B as a suitable location for a café and/or kiosk of 150sqm plus 50sqm alfresco.  Although the survey resulted in majority support (60%), there remains a high level of opposition (40%).  Notwithstanding there remains opposition, many of the concerns expressed during the public consultation process relate to issues that may be dealt with by adherence to the evaluation criteria adopted by Council at the 12 March 2014 meeting (refer above).  For example, environmental issues such as the location being within a foreshore reserve subject to inundation may be dealt with by elevating any built form from the natural ground level.  Other environmental issues including removal of native vegetation may be mitigated by revegetation measures imposed as a condition of development.  It is reasonable to expect locating a café/kiosk on the Dunsborough foreshore will directly result in an increase in demand for car-parking.  Accordingly, Council may wish to consider expanding and/or improving the existing car-park and/or the number of bays on Geographe Bay road.  Moreover, a financial contribution to these works may be sought from the proponent as part of future negotiations, should Council elect to continue facilitating a café development.

 


 

CONCLUSION

 

This report has outlined the results of public consultation on use of a proposed containment zone on the Dunsborough foreshore (‘A Class’ Reserve Number R22965), for use as a café and/or kiosk with a building footprint of 150sqm plus an alfresco area of 50sqm.  Based on the public comments received, it recommends the Council proceed to advertising for preliminary registrations of interest (RoI) from the private sector to establish a commercial café and/or kiosk using evaluation criteria for physical planning and urban design, environmentally sustainable design and public interest requirements, as outlined in this report.  Should there be commercial interest emanating from the RoI process that meets the evaluation criteria, shortlisted respondents be invited to proceed to submit more detailed proposals for Council and community consideration.

 

OPTIONS

 

Council may elect:

1.    not to continue to facilitate development of a commercial café/kiosk development on the Dunsborough foreshore (‘A Class’ Reserve Number R22965), and within the vicinity of the redevelopment area;

2.    Commence due diligence on an alternative location for a foreshore café, for example at Old Dunsborough in accordance with several public submissions received

 

TIMELINE FOR IMPLEMENTATION OF RECOMMENDATION

 

Should Council support the Officer Recommendation, staff would invite preliminary registrations of interest for a café and/or kiosk development from August 2014, contiguously seeking power to lease ‘A Class’ Reserve Number R22965 from the Minister for Lands.

 

Subject to all statutory approvals being received, the City would then seek further detailed submissions from a shortlist of respondent to the RoI process and select a ‘preferred proponent’ to develop a detailed concept for further consideration by Council in late 2014.

 

OFFICER RECOMMENDATION

 

That the Council:

 

1.         Acknowledges public submissions received on the nominated containment zone for a café          and/or kiosk on the Dunsborough foreshore (‘A Class’ Reserve Number R22965), with a potential building footprint of 150sqm plus an alfresco area of 50sqm;

 

2.         Endorses the nominated containment zone, as shown at Attachment B, for a café and/or             kiosk on the Dunsborough foreshore (‘A Class’ Reserve Number R22965), with a potential         building footprint of 150sqm plus an alfresco area of 50sqm;

 

3.            Writes to the Minister for Lands requesting an amendment to the management order to provide the City with the power to lease on the nominated containment zone (‘A Class’ Reserve Number R22965), as shown at Attachment B;

 

4.         Seeks preliminary registrations of interest (RoI) from the private sector to lease a portion of     ‘A Class’ Reserve Number R22965, within the containment zone shown at Attachment B, for         a café/kiosk development, whilst contiguously seeking power to lease the Reserve in           accordance with (3) above.

 


Council                                                                                      49                                                                      25 June 2014

13.2           REQUEST FROM ST JOHN AMBULANCE TO LEASE A PORTION OF LOT 434 MOLLOY STREET BUSSELTON

SUBJECT INDEX:

Agreements / Contracts

STRATEGIC OBJECTIVE:

A community where people feel safe, empowered, included and enjoy a sense of good health and wellbeing.

BUSINESS UNIT:

Commercial Services

ACTIVITY UNIT:

Commercial Services

REPORTING OFFICER:

Economic and Business Development Coordinator - Jon Berry

AUTHORISING OFFICER:

Director, Community and Commercial Services - Naomi Searle

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Site Proposed St John Ambulance Sub-Centre

Attachment b    Letter of Request from St John Ambulance   

  

 

PRÉCIS

 

St John Ambulance Western Australia Ltd (St John) urgently requires land for a new ambulance sub-centre and first aid training facility.  St John approached the City of Busselton in mid-2013, to assist it identify a suitable site within close proximity of the Busselton CBD and has expressed interest in land adjoining Causeway Road.  More recently, St John has expressed specific interest in a portion of Lot 434 Molloy Street (cnr of Causeway Rd), which is Crown land vested with the City of Busselton with the power to lease.  St John has a long term objective to have a portion of Lot 434 Molloy Street excised to enable a Management Order to be issued directly from the Minister for Lands.

 

In 2012, the City wrote to the Public Transport Authority of Western Australia (PTAWA) seeking management control of the railway reserve on Causeway Road, however the City has only been able to secure a ‘Licence to Occupy’ agreement.  This licence enables the City to offer continuity of the reserve to accommodate community activities such as the Railway Hall, Girl Guides Hall and Scouts Hall but is not a permanent arrangement and is not conducive to significant infrastructure improvements.

 

This report recommends Council offer a peppercorn lease of a portion of Lot 434 Molloy Street, Busselton to St John to meet its need to establish a new ambulance sub-centre and in recognition of it being an important community service with an urgent need to relocate from its existing premises adjacent to the old hospital.  Further, the report recommends that the CEO continue to advocate to the Member for Vasse and the Minister for Transport for the PTAWA to relinquish management control of the surrounding railway reserves and to seek the Minister for Lands to vest these railway reserves to the City of Busselton.

 

 

BACKGROUND

 

The City has held discussions with St John to assist it in acquiring suitable land in Busselton for a new sub-centre and first aid training facility, including an option to lease a portion of Lot 434 (Reserve 43859) Molloy Street, Busselton (corner of Causeway Road marked by a star on Attachment A).  This land adjoins the railway corridor [Reserve 2238 (Lot 36), Reserve 2236, (Lots 37 – 41), Reserve 2237 (Lot 43), Reserve 6333 (Lots 44–48) and Reserve 3370 (Lot 435)] as shown in Attachment A, which the City is seeking the vesting of from the Minister for Lands.  Lot 434 Molloy Street is Crown land currently vested to the City of Busselton with power to lease.

 

St John has considered a number of options near the new hospital site however its activities are defined in the town planning scheme as “transport depot”.  Most of the land around the hospital including the Bussell Highway is zoned residential which does not permit this use.  Alternative options would be a site in the central business district or the industrial area which is financially challenging for St John, being a not for profit organisation.  The City of Busselton has a Management Order over Lot 434 (Reserve 43859) with designated purpose currently ‘Aquatic Centre’ (it was once the preferred location for a leisure centre which was subsequently built adjacent to Queen Elizabeth Avenue).  Discussions with St John has deemed this land suitable for the proposed sub-centre given it is strategically located to the main population centre of Busselton and has good access to Bussell Highway.  City officers are currently in discussions with the Department of Lands to have the purpose of the land changed to ‘Recreation,Emergency Services and Community Purposes’.

 

The City has indicated to St John its willingness to relinquish the management order over a portion of Reserve 43859, should it secure the management order over the nearby railway reserve land, adjacent to the City administration building.  This will allow the City to continue to promote the use of the land as a ‘community hub’ and allow for the future widening of Causeway Road.  In 2012, the City wrote to the PTAWA seeking management control of the railway reserve on Causeway Road (particularly Lots 40 and 41 as shown in Attachment A).  The PTAWA advised that as the Reserve still contains a gazetted railway line they would not be prepared to relinquish it because the decision had not been made to discontinue the use of the line.  Subsequently, the City entered into a ‘Licence to Occupy’ agreement to enable continuity of use of the reserve to accommodate community uses including the Railway Hall, Girl Guides Hall and Scouts Hall.

 

City officers continue to work with the Member for Vasse to have the PTA relinquish Reserve 2238 (Lot 36), Reserve 2236, (Lots 37 – 41), Reserve 2237 (Lot 43), Reserve 6333 (Lots 44–48) and Reserve 3370 (Lot 435) and to have the Minister for Lands issue a management order over the land directly to the City of Busselton.  Should this proposal be successful, the Council may then be in a position to relinquish the management order over a portion of Lot 434 Molloy Street, allowing St John to secure long term tenure over the land.

 

STATUTORY ENVIRONMENT

 

When disposing of property whether by sale, lease or other means, a Local Government is bound by the requirements of section 3.58 of the Local Government Act. However 3.58 (5) (d) provides exemptions to this process under Regulation 30 (2) (b) (i) & (ii) of the Local Government (Functions & General) Regulations.

 

This section states “disposal of land to incorporated bodies with objects of benevolent, cultural, educational or similar nature and the members of which are not entitled to receive any pecuniary profit from the body transactions, are exempt from the advertising and tender requirements of section 3.58 of the Local Government Act.”  St John is an entity to which this exemption applies.

 

The land requested by St John is located on Lot 434 (Reserve 43859), Molloy Street, Busselton.  The reserve is vested with the City for the designated purpose of “Aquatic Centre” with the power to lease or licence for any term not exceeding 21 years.

 

The PTAWA is the responsible agency for Reserve 2238 (Lot 36), Reserve 2236, (Lots 37 – 41), Reserve 2237 (Lot 43), Reserve 6333 (Lots 44 – 48) and Reserve 3370 (Lot 435). All of this land is reserved for “Railway Purposes” as the land contains gazetted railway line.

 

Section 15 of the Public Transport Authority Act 2003 gives the PTAWA the powers, among other things, to grant licences in relation to Crown Land.

 

RELEVANT PLANS AND POLICIES

 

Town Planning Scheme cited as the Shire of Busselton District Town Planning Scheme No 20.


 

FINANCIAL IMPLICATIONS

 

The rent charged to community and sporting groups for leased City land and/or buildings is $200.00 per annum (inclusive GST), as per the Council adopted 2014/15 Schedule of Fees and Charges.

 

The premises are to be built, managed and maintained at the cost of St John.  There should be no financial implications to the City in this regard.

 

St John will also be requested to meet the cost of surveys and processing fees involved in lease documentation.

 

STRATEGIC COMMUNITY OBJECTIVES

 

This item aligns with the following City of Busselton Key Goal Areas identified in the 2013 Strategic

Community Plan:

 

Key Goal Area 1:

Caring and inclusive community:  A welcoming, inclusive, healthy and capable community that provides accessible services for all residents.

 

1.1.1      A community where people feel safe, empowered, included and enjoy a sense of good health and wellbeing

1.1.2      A community that supports healthy, active ageing and other services to enhance quality of life as we age

 

Council has adopted specific strategies to:

§   Advocate with State and Federal Government for the adequate provision of community services to meet the needs of future population growth

§   Support and assist community organisations to provide services to the community, with special focus on the needs of seniors, young people, families and the disadvantaged

§   Work with key partners and the community to lobby for effective health and medical services for the district

 

RISK ASSESSMENT

 

The following risks rated ‘high’ have been identified in preparing this report.

 

Risk

Controls

Consequence

Likelihood

Risk Level

REPUTATION

If St John is unable to secure tenure of the site then they are unlikely to invest in the required infrastructure, potentially resulting in Busselton not having a fully serviced sub-station.

The City support St John in its request to lease the Molloy Street site and continues to be open to assessing alternative sites if requested by St John.

 

City officers to keep the Member for Vasse informed of the project to help gain political support for longer term arrangements

Moderate

 

 

 

 

 

 

 

 

 

Moderate

Likely

 

 

 

 

 

 

 

 

 

Likely

High (H17)

 

 

 

 

 

 

 

 

 

High (H17)

 

CONSULTATION

 

Discussions have been held between St John, Property and Development division based in Perth, and the City of Busselton’s Planning Directorate in regards to having a portion of Lot 434 Molloy Street, Busselton, excised and returned to the State of Western Australia for a subsequent Management Order to be granted to St John for the purposes of ambulance and first aid services.

 

The Hon Troy Buswell MLA has written to the Minister for Transport the Hon Dean Nalder MLA to gain support to have the PTA relinquish its management of the overall railway reserve.

 

City officers have held initial discussions with the Department for Lands regarding the change of purpose of Lot 434 Molloy Street from Aquatic Centre to Recreation, Emergency and Community Services.  The Regional Manager has also been briefed regarding the longer term proposal to relinquish a portion of Lot 434 Molloy Street in exchange for a management order over the adjacent railway reserve to facilitate a community services precinct on Causeway Road near the CBD, and to allow for the future widening of Causeway Road.

 

OFFICER COMMENT

 

The provision of quality emergency services, patient transfers and first-aid training facilities in Busselton is a high priority for the community and the service provider St John.  The existing building is located adjacent to the new Busselton Health Campus (currently under construction) and is an ageing facility not ideally suitable for the contemporary range of first-aid training and emergency service functions St John provide.

 

St John has written to the City of Busselton (see Attachment B) seeking to enter into a peppercorn lease of a portion (approximately 6000m2) of Lot 434 Molloy Street for a period of 21 years for the purpose of establishing a new ambulance, patient transfer and first aid service.  Moreover, St John seeks to secure this land on a more permanent basis from the State of Western Australia by way of a direct management order.  In order to facilitate this request, the City would need to relinquish its management order over a portion of Lot 434 Molloy Street.  Officers recommend Council do not relinquish its current management control (with the power to lease) of a valuable land asset, unless the State of WA provides alternative land in return for the relinquishment.  Council has previously expressed interest in securing long term tenure over the surrounding railway reserves on Causeway Road for the purposes of establishing a community services precinct and for widening of Causeway Road.  Officers are recommending a portion of Lot 434 only be relinquished in exchange for control over the surrounding railway reserves and in the interim, enter a peppercorn lease of the land.

 

CONCLUSION

 

This report recommends Council offer a peppercorn lease of a portion of Lot 434 Molloy Street to St John to meet its immediate need to establish a new ambulance sub-centre in Busselton.  It also recommends Council authorize the CEO to continue to advocate to the Member for Vasse and the Minister for Transport for the PTAWA to relinquish management control of the surrounding railway reserves and to seek the Minister for Lands to vest these railway reserves to the City of Busselton so it can create a community services hub near the City administration building and additionally, to provide land for future widening of Causeway road.  Should these negotiations be successful, it is recommended Council relinquish a portion of Lot 434 Molloy Street back to the State of WA for it to consider the issue of a management order direct to St John to give it greater security in the long term.

 

The rent charged to community and sporting groups will be $200.00 per annum inclusive of GST and would apply to the St John lease should Council support the Officer recommendation.

 

OPTIONS

 

Council may elect to:

 

·    Treat St John as it would a commercial entity and let it pursue commercial opportunities to purchase land within the City at market value.

 

·    Identify another parcel of land which is City controlled with the appropriate zoning requirements, with appropriate access and egress for ambulance traffic.

 

·    Excise a portion of Lot 434 Molloy Street and support St John to gain a direct management order from the State of WA without successfully negotiating an outcome from PTAWA to have control of the adjacent land on Causeway road.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Timelines will be determined by the process involved in changes to the purpose of the land and will to an extent be controlled by external parties.  If St John accepts an offer to lease a portion of the Lot 434 Molloy Street, the purpose of the Reserve would need to be amended.  The current purpose is ‘Aquatic Centre’ and to undertake a reserve amendment (to Recreation, Emergency Services and Community Purposes) the Department of Land’s advice is that the process may take up to three months.

 

OFFICER RECOMMENDATION

 

That the Council:

 

1.         Subject to the consent of the Minister for Lands, authorises the CEO to enter into a lease            agreement with St John for a portion of Lot 434 Molloy Street (Reserve 43859) as indicated in             Attachment B (proposed land parcel location and dimensions to be confirmed) and subject to   the following:

 

a.      The lease shall be consistent with the City’s standard community and sporting group lease       agreement;

 

b.     St John are to survey the portion of the site it requires, at its expense, and submit to the City of Busselton;

 

c.      The term of the lease to be 21 years, commencing on the date of execution;

 

d.     The annual rent to be $200.00 inclusive of GST with CPI rent reviews to be conducted on each anniversary date; and

 

e.     All costs for the preparation of the lease, zoning and change of titles, application and    processing fees, to be met by the Lessee

 

2.         2.         That the CEO write to the Department of Lands requesting alteration of the purpose of the         Management Order for Lot 434 (Reserve 43859 ) Molloy Street, Busselton from the purpose        ‘Aquatic Centre’ to the purpose ‘Recreation, Emergency Services and Community Purposes’

 

1.         3.         Authorises the CEO to continue to advocate to the Member for Vasse and the Minister for          Transport for the PTAWA to relinquish management control of Reserve 2238 (Lot 36),        Reserve 2236,         (Lots 37 – 41), Reserve 2237 (Lot 43), Reserve 6333 (Lots 44 – 48) and    Reserve 3370           (Lot 435) as shown in Attachment A and to seek the Minister for Lands to           vest these reserves to the City of Busselton

 

2.         4.         Should Recommendation 3 above be successful, Council supports a portion of Lot 434      Molloy Street (Reserve 43859) to be relinquished back to the State of WA and supports the           Minister for Lands to issue a management order directly to St John to afford it greater long   term security of the land for its proposed ambulance sub-centre and first-aid training             operations.

 

  


Council                                                                                      53                                                                      25 June 2014

8.               Finance and Corporate Services Report

14.1           PROPOSED DIFFERENTIAL RATES IN THE DOLLAR AND ASSOCIATED MINIMUM PAYMENTS - 2014/15 FINANCIAL YEAR

SUBJECT INDEX:

Differential Rates

STRATEGIC OBJECTIVE:

An organisation that is managed effectively and achieves positive outcomes for the community.

BUSINESS UNIT:

Finance and Information Technology

ACTIVITY UNIT:

Finance

REPORTING OFFICER:

A/Director, Finance and Corporate Services - Darren Whitby

AUTHORISING OFFICER:

Chief Executive Officer - Mike Archer

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Nil

  

PRÉCIS

 

In accordance with Section 6.36 of the Local Government Act (‘the Act’), where a local government intends to impose differential rates, or a minimum payment applying to a differential rate category, it is required to give local public notice of its intention to do so. The public notice is to invite submissions to the proposal for a period of not less than twenty one (21) days. The Council is required to consider any submissions received prior to it formally imposing the proposed differential rates in the dollar and associated minimum payments, with or without modification.

 

As it is intended that differential rates will be imposed as part of the Council’s 2014/15 annual budget, this report seeks the Council's endorsement to provide public notice of the proposed differential rates in the dollar and associated minimum payments as recommended in this report.

 

 

BACKGROUND

 

Pursuant to Section 6.33 of the Act, a local government may determine to impose differential rates according to a range of characteristics, including the purpose for which land is zoned, the purpose for which land is held or used, or whether the land is vacant land.  As part of its 2013/14 adopted budget, the Council imposed differential rates and associated minimum payments in line with the above characteristics. A synopsis of the currently adopted differential rating categories is provided as follows:

      

Gross Rental Value (GRV)

 

§ Industrial/ Commercial (Improved)

This differential rating category is reflective of the additional rates levied to assist in funding tourism and marketing activities throughout the district.  

 

§ Industrial/ Commercial (Vacant Land)

Whilst also contributing to the funding of tourism and marketing activities, a lower rate in the dollar applies to this category, to assist in tempering the impacts of the comparatively higher vacant land valuations (as compared to improved properties). 

 

Unimproved Valuation (UV)

 

§ UV Rural

This differential rating category acknowledges the higher comparative valuations within the unimproved land use category, and typically relates to non-income earning properties used or held for residential purposes.     

§ UV Commercial

This differential rating category is cognisant of the associated land use, which typically relates to commercial activities not defined as being of a primary production nature.

 

In addition to the above differential rates, the Council has general rates for both the GRV and UV components, which have historically been assigned to the Residential (GRV) and Primary Production (UV) categories.   

 

It is proposed that the prevailing differential and general rating categories will be maintained as part of the 2014/15 annual budget.

 

With regards to the rates in the dollar and associated minimum payments proposed to be imposed in 2014/15, these have been predicated on a general rate increase of 5.25%, coupled with a further 1% increase in the industrial/ commercial zone groups; for tourism and marketing activities. These increases are in line with the Council’s currently endorsed Long Term Financial Plan. 

 

STATUTORY ENVIRONMENT

 

Sections 6.25 to 6.82 of the Act refer to rates and service charges. However, this report more specifically refers to the following sections of the Act;   

 

§ Section 6.33 - Differential general rates

§ Section 6.35 - Minimum payment

§ Section 6.36 - Local government to give notice of certain rates 

 

RELEVANT PLANS AND POLICIES

 

The Council’s Rating Policy (236) states that the Council supports the use of differential rating as a tool in which to realise equitable rating.

 

FINANCIAL IMPLICATIONS

 

The Council’s currently endorsed (C1306/144) Long Term Financial Plan includes a general rate increase of 5.25% in the 2014/15 financial year. In addition to a general rate increase of 3% (based on the 10 year rolling average Consumer Price Index), a further 1% is earmarked for road asset management plan funding purposes, with a further 1.25% to assist in funding loan repayments associated with the construction of the Civic and Administration Centre.

 

At its meeting of 14 May 2014, the Council supported (C1405/125) a further increase of 1% in respect of the differential rate for tourism and marketing activities.   

 

The 2014/15 draft annual budget has been developed in line with the aforementioned rating determinations.            

 

STRATEGIC COMMUNITY OBJECTIVES

 

This matter principally aligns with Key Goal Area 6 – ‘Open and Collaborative Leadership’ and more specifically Community Objective 6.3 - ‘An organisation that is managed effectively and achieves positive outcomes for the community’.

 

RISK ASSESSMENT

 

Not applicable.

CONSULTATION

 

Not applicable.

 

OFFICER COMMENT

 

The differential rates in the dollar and associated minimum repayments, as recommended for endorsement for public notice purposes, have been predicated on the Council’s currently endorsed Long Term Financial Plan, with this methodology reaffirmed as part of the 2014/15 draft budget workshops. The further increase of 1% for tourism and marketing activities has also recently been supported by the Council.      

 

Whilst rate modelling has been undertaken using the above parameters, it is important to note that properties valued at unimproved value (UV) are subject to an annual valuation, whereas gross rental valuations (GRV) are conducted every three years. Accordingly, the rate increases on individual properties within the UV land use groups may vary from the general 5.25% increase; albeit the collective value of rates levied within each land use group will generally increase by this percentage.                

 

It is also worthy of noting that Section 6.33 (Differential rates) and Section 6.35 (Minimum payment) of the Act require that certain ratios be complied with in respect of, amongst others, differential rating comparatives, general minimum payments and the number of properties subject to minimum payments. These matters have also been required to be considered as part of the rates modelling process.

 

In accordance with Section 6.36 of the Act (Local government to give notice of certain rates), public notice is required to be given where a local government intends to impose differential rates, or a minimum payment applying to a differential rate category. The public notice is to invite submissions to the proposal for a period of not less than twenty one (21) days. The Council is required to consider any submissions received prior to it formally imposing the proposed differential rates in the dollar and associated minimum payments, with or without modification. As in previous years, and unless circumstances require otherwise, it is proposed that any submissions received will be presented to the Council at which time it formally considers its 2014/15 annual budget.   

 

Whilst not required to do so, it is proposed that in addition to the differential rates in the dollar and associated minimum payments, that the Council also gives public notice of the general rates in the dollar and associated minimum payments. This is simply to provide ratepayers with additional comparative data.            

 

CONCLUSION

 

The proposed differential rates in the dollar and associated minimum payments are analogous with related Council determinations, and as such, are recommended for endorsement for public notice purposes. Notwithstanding this however, the Council may determine to amend the advertised rates in the dollar and/or associated minimum payments at which time it formally adopts its budget, without the need for further public notice. Should this occur, the reasons for not adopting the advertised rates in the dollar and/ or associated minimum payments are required to be disclosed in the Annual Budget and also as part of the rates notice; pursuant to Regulations 23(b) and 56(4)(b) of the Local Government( Financial Management) Regulations.

 

OPTIONS

 

The Council may determine to amend the proposed differential rates in the dollar and associated minimum payments as recommended in this report. In doing so however, the Council would need to be mindful of the requirements of Sections 6.33 and 6.35 of the Act. 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Consequent to the Council’s determination in this matter, public notice will be given as soon as practicable thereafter.

 

OFFICER RECOMMENDATION

 

That the Council endorses the following differential rates in the dollar and associated minimum payments, and general rates in the dollar and associated minimum payments, proposed to be imposed for the 2014/15 financial year, for public notice purposes:

 

Description

Rate in the $

Minimum Payment

Differential Rates

 

 

GRV - Industrial/ Commercial (Improved)

9.9795c

$1,010

GRV - Industrial/ Commercial (Vacant Land)

9.4828c

$1,010

UV  - Rural

0.3341c

$1,010

UV  - Commercial

0.6569c

$1,010

General Rates

 

 

GRV – Residential (Improved and Vacant Land)

8.9174c

$1,010

UV – Primary Production

0.3608c

$1,010

 


Council                                                                                      57                                                                      25 June 2014

14.2           DRAFT CITY OF BUSSELTON CORPORATE BUSINESS PLAN 2014/15 - 2017/18

SUBJECT INDEX:

Corporate Business Plan

STRATEGIC OBJECTIVE:

An organisation that is managed effectively and achieves positive outcomes for the community.

BUSINESS UNIT:

Corporate Services

ACTIVITY UNIT:

Organisational Development

REPORTING OFFICER:

Manager, Corporate Services - Sarah Pierson

AUTHORISING OFFICER:

A/Director, Finance and Corporate Services - Darren Whitby

VOTING REQUIREMENT:

Absolute Majority

ATTACHMENTS:

Attachment a   Draft Corporate Business Plan 2014/15 - 2017/18  

  

 

PRÉCIS

 

This report presents the attached draft City of Busselton Corporate Business Plan 2014/2015 - 2017/18 (Attachment A) and seeks Council’s approval and formal adoption of the Plan. 

 

 

BACKGROUND

 

On 26 August 2012 the Minister for Local Government introduced regulations establishing new requirements for the Plan for the Future under the Local Government Act 1995.  Under these regulations, all Local Government Authorities are required to have a Strategic Community Plan spanning a minimum ten year period and a Corporate Business Plan, spanning a four year period.

 

Following a community consultation exercise the City of Busselton adopted its Strategic Community Plan 2013 on 27 February 2013, setting the strategic direction for the activities and initiatives for the next 10 years.  Adoption of the City’s first and current Corporate Business Plan for years 2013/2014 - 2016/2017 then followed, with the plan being developed following extensive consultation internally and with Council to ensure that the services we provide are adequately reflected in the plan and that the actions are those which the Council sees as a priority for the organisation in the next four years. Both the Strategic Community Plan 2013 and Corporate Business Plan 2013/2014 – 2016/2017 are supported and informed by the City’s Asset Management Plans, Long Term Financial Plan 2013/14 – 2022/2023 and Workforce Plan 2013.  Our Annual Budget is aligned to year one of the Corporate Business Plan.  This set of plans and their integration with each other is commonly referred to as integrated planning.

 

There are three standards for measuring a local government’s integrated planning performance, basic, intermediate and advanced.  The legislation requires that at the very least, the basic standard must be met.  The intermediate and advanced standards demonstrate the higher levels to which local governments should aspire as they mature and improve their planning practices.  At this point, the City of Busselton has successfully achieved the basic standard.  Formal feedback in relation to the City’s integrated planning performance and progress towards meeting higher standards has not to date been received from the Department of Local Government and Communities (the Department) however the City is continually seeking ways to improve its integrated planning.  

 

As per the regulations, the City’s Corporate Business Plan is reviewed annually.  The Strategic Community Plan is reviewed every 2 years with a full review being undertaken every 4 years.  Accordingly it is anticipated that the Corporate Business Plan review, although undertaken every year, will be more comprehensive in nature in years where the Strategic Community Plan has been reviewed.  In other years the review process should be relatively straight forward; confirming that service delivery remains current, reviewing progress against priority actions and confirming actions scheduled for the new four year period of the plan, noting that years two to four of the current plan becomes years one to three of the new plan and year four (being year five of the Long Term Financial Plan) is added.

 

STATUTORY ENVIRONMENT

 

Section 5.56 of the Local Government Act 1995 (the Act) requires a local government to plan for the future of the district and to ensure that any such plans are in accordance with regulatory requirements.  Regulation 19(D)(A) of the Local Government (Administration) Regulations 1996 (the Regulations) require the development of a Corporate Business Plan which relates to the whole of the district over a term of at least four financial years.  The regulations also require that the Corporate Business Plan to:

 

(1)    Set out the local government’s priorities for dealing with the objectives and aspirations of the community as reflected in the Strategic Community Plan;

 

(2)    Govern the local government’s internal business planning by ensuring that any priorities referred to in the Corporate Business Plan are within the capacity of the local government’s resources; and

 

(3)    Develop and integrate matters relating to any Asset Management Plans, Workforce Planning and the local government’s Long Term Financial Plan. 

 

Regulation 19(D)(A) also requires that the Corporate Business Plan is adopted by an Absolute Majority decision of the Council and that the Corporate Business Plan is reviewed each year.

 

RELEVANT PLANS AND POLICIES

 

The adoption of the City of Busselton Corporate Business Plan 2014/15 – 2017/2018 is consistent with the requirements of the City’s current Strategic Planning Policy 242, noting that a review of Policy 242 is scheduled for completion during 2014/15 to ensure it aligns and reflects current legislative requirements for integrated planning.

 

The Department’s Integrated Planning and Reporting Advisory Standard sets out basic, intermediate and advanced standards for each of the components of the integrated planning process.  Currently, the City satisfies the basic standards and partially meets the intermediate standard.  However, the Department strongly encourages all local governments to aim to continually improve their integrated planning and strive towards intermediate and advanced standard. 

 

The basic standard for a Corporate Business Plan is met when:

 

·        A Council has, by 30 June 2013 or earlier, adopted a Corporate Business Plan that meets all of the listed regulatory requirements;

 

·        The current year of the Corporate Business Plan establishes the current Annual Budget; and

·        The local government also has in place:

-        a workforce plan that meets the basic standard;

-        asset management key performance indicators that meet the basic standard; and

-        a long term financial plan.

 

The intermediate standard for a Corporate Business Plan is met when:

 

·        The Corporate Business Plan meets the basic standards

·        Resourcing components (e.g. workforce plan, asset management plan, long term financial plan) have been integrated to drive activities/service delivery

·        The workforce plan has been developed to an intermediate standard

·        Asset key performance indicators meet advanced standards

·        Financial management key performance indicators meet basic standards

 

FINANCIAL IMPLICATIONS

 

The financial implications of the Corporate Business Plan are reflected in the current 2013/2014 - 2016/2017 Long Term Financial Plan, with the Long Term Financial Plan resourcing all of the services and actions detailed in the Corporate Business Plan.  Some of the more significant infrastructure projects will be substantially delivered utilising borrowings, noting that the City has significant borrowing capacity. Other projects and activities will rely to varying degrees on grant or other external funding such as State and Federal government funding.  Where this is the case it has been indicated in the plan.  

 

The City is currently in the process of reviewing its adopted Long Term Financial Plan with the revised plan expected to reflect some changes to funding allocations for key projects such as the redevelopment of the Busselton Foreshore and redevelopment of the City’s Civic and Administration Centre.  The need to further rationalise costs associated with workforce growth has also been identified, although this is not expected to impact on the City’s ability to deliver services or achieve its priority actions.  Importantly all of the actions identified in this Corporate Business Plan will continue to be resourced within the revised Long Term Financial Plan, with no significant changes anticipated in terms of delivering priority actions. 

 

STRATEGIC COMMUNITY OBJECTIVES

 

As the Regulations require the Corporate Business Plan to set out the local government’s priorities for dealing with the objectives and aspirations of the community in a manner consistent with the Strategic Community Plan for the district, there is an obvious close relationship between the City’s proposed Corporate Business Plan and the City of Busselton Strategic Community Plan 2013.  Indeed, the Corporate Business Plan is the means by which the City proposes to carry out its role in delivering upon the community’s aspirations as reflected in the Strategic Community Plan 2013.

 

The adoption of the draft Corporate Business Plan links to the key goal area “Open and Collaborative Leadership” and Community Objective 6.3 – “An organisation that is managed effectively achieves positive outcomes for the community”. 

 

RISK ASSESSMENT

 

There is always the potential for non-delivery of services or actions referred to in the Corporate Business Plan.  However, the risk is relatively low, given that the plan reflects existing services and actions itemised in each section of the plan and have been incorporated into the costings of the Long Term Financial Plan 2013/2014 – 2022/2023 and also considered in the current work being done to review the Long Term Financial Plan.  Actions dependent on external funding are denoted as such in the Corporate Business Plan to ensure transparency and accountability.

 

CONSULTATION

 

The Corporate Business Plan directs the internal operations of the City and there is no necessity for it to be subject to external consultation.  In keeping with the current Corporate Business Plan, the draft Plan continues to strongly reflect and link to the aspirations of the community as expressed in the City of Busselton Strategic Community Plan 2013.  Noting also that we are entering only the second year of the plan and the priority actions have not changed significantly from those adopted in 2013. 

OFFICER COMMENT

 

As per the requirements of the Regulations and the Department’s advisory standard it is essential that the Corporate Business Plan strongly reflects the Strategic Community Plan 2013, and integrates all relevant information contained in the Long Term Financial Plan, the Workforce Plan and any asset management plans that have been prepared for the City.  Officers believe that the City of Busselton Corporate Business Plan 2014/2015 – 2017/2018 achieves all of these outcomes.

 

The draft Corporate Business Plan outlines all of the services that Council delivers to the community, together with the priority corporate actions that the City intends to complete over the next four years.  These services and actions have been allocated to the most appropriate key goal area contained in the Strategic Community Plan 2013.  While a number of services and actions could link to more than one key goal area; the linking of services and actions on a “best fit” basis, as is the case with the currently adopted Corporate Business Plan has been maintained.  The plan also references a link for each of the Corporate Business Plan actions to one or more Council strategies in the Strategic Community Plan.

 

As discussed in Financial Implications section of this report all of the services and actions referred to in the Corporate Business Plan are funded in the currently adopted Long Term Financial Plan.  Where actions are dependent upon external funding, it is indicated in the “External/Grant Funding” column within the plan.  A summary excerpt of the Long Term Financial Plan is included at pages 23 and 24 of the Corporate Business Plan.  The section titled Resourcing our Corporate Business Plan (page 21) provides a detailed explanation of the process followed to ensure that the commitments within the plan are funded and that they will continue to be funded within the revised Long Term Financial Plan currently being prepared. 

 

The Resourcing our Corporate Business Plan section contains reference to the City’s Workforce Plan and Asset Management Plans and the process for incorporating the information from these plans into the Long Term Financial Plan.  In instances where asset management plans have been adopted by Council, the Corporate Business Plan addresses the maintenance and management of these assets as a service or a required action as appropriate.  Completed asset management plans are specifically referenced in the Corporate Business Plan under the section relating to informing policies or plans.  The continuing requirement to develop asset management plans for asset classes not yet covered by a plan is also included in the proposed Corporate Business Plan as an action.

 

The detail of the Corporate Business Plan is found in each of the sections titled Key Goal Area.  Each key goal area describes the desired Strategic Community Plan outcome and the three community objectives of each key goal area.  In response the relevant City services and priority action items which aim to further those objectives are listed. 

 

The Corporate Business Plan 2014/2015 – 2017/2018 largely reflects the continuation of initiatives commenced in the current Corporate Business Plan 2013/2014 – 2016/2017 and maintains the City’s commitment to the progression of significant projects; namely expansion of the Busselton Regional Airport as a regional priority project, redevelopment of the Busselton Foreshore as a local priority project and redevelopment of the City’s Civic and Administration Centre as a project of organisational importance.  Additionally there remains an action in relation to a Performing Arts / Convention Centre which is to progress the business case for the design and development of a performing arts space / convention centre.  In the event however that the Multi-Functional Civic Centre component of the Civic and Administration Centre redevelopment proceeds then it will be progressed and reported on under this action.  

 

As part of the review process some new actions have been incorporated into the plan and others have been amended in response to progress and changes occurring over the previous twelve months.  Some actions completed during 2013/2014 have been deleted.  In each instance, care has been taken to ensure that the actions align with and further aid in achievement of the community’s objectives.  Additionally any amendments have been cross checked against the City’s resourcing documents to ensure they can be appropriately resourced.

 

Following are the additional and significantly amended actions in each key goal area, noting that other actions have had minor amendments made so that they better reflect the proposed detail of the action.  Where the change has not impacted on the intent of the action the change has not been listed below.  

 

Key Goal Area 1: Caring and Inclusive Community

No new actions or amendments

 

Key Goal Area 2: Well Planned, Vibrant and Active Places

Action

Responsibility

Informing Policy or Plan

External/
Grant Funding

14/15

 

15/16

16/17

17/18

Tennis/Croquet Facilities (new)

Work with relevant sporting groups to progress the relocation and development of tennis/croquet facilities in accordance with the Master Plan

Community / Major Projects

 

Busselton Foreshore Master Plan

 

Yes

 

X

 

X

 

X

 

X

Settlement Art Project (amended: previously Cultural Initiatives)

Continue to progress the Busselton Settlement Art Project to recognise and celebrate the region’s cultural heritage and activate the Cultural Precinct.

Community

Social and

Ageing Plan/

Local Cultural Planning Strategy

Yes

 

X

 

X

 

X

 

Busselton Foreshore Redevelopment (amended and replaces separate sub-actions Queen Street Upgrade and Interpretive Precinct)

Complete the Busselton Foreshore Redevelopment in accordance with the Master Plan

Major Projects

 

Busselton Foreshore Master Plan

 

Yes

 

X

 

X

 

X

 

X

 

Key Goal Area 3: Robust Local Economy

Action

Responsibility

Informing Policy or Plan

External/
Grant Funding

14/15

 

15/16

16/17

17/18

International Relationships (amended and split into two actions - also see new action in Key Goal Area 6 Cultural Development)

Encourage relationships with  international communities for the economic benefit of our community

Governance

 

 

 

X

 

X

 

X

 

X

Marine Berthing Facility  (amended: previously Marine Tourism Strategy)

Plan for and implement a marine berthing facility to cater for cruise ship and commercial marine operators, further activating the region’s tourism industry

Commercial

 

 

 

 

 

X

 

 

 

Regional Development (new)

Progress regional development strategies to facilitate economic opportunities and benefits for the district

Commercial

Capes Region Economic Development Strategy

 

 

X

 

X

 

X

 

X

 


 

Key Goal Area 4:  Connected City

Action

Responsibility

Informing Policy or Plan

External/Grant Funding

14/15

 

15/16

16/17

17/18

Busselton Traffic Study (amended: previously Major Road Construction Proposal)

Finalise a plan for the funding and construction of a new access point into Busselton as per the  recommendations of the Busselton Alternative Access Traffic Study

Engineering

 

Busselton Alternative Access Traffic Study

 

 

Yes

 

X

 

 

 

Busselton Regional Airport Expansion Stage 2

(amended: previously part 2 of Busselton Regional Airport expansion)

Subject to the outcome of the Busselton Regional Airport business case and the provision of external funding progress with Stage 2 expansion of the airport to provide for interstate flights

Commercial

 

Busselton Regional Airport Master Plan

 

Yes

 

X

 

X

 

X

 

X

Busselton Regional Airport Expansion Stage 2b

(amended: previously part 3 of Busselton Regional Airport expansion)

Continue to lobby the Federal and State government in relation to airport expansion  Stage 2b resulting in the capacity for international flights

Commercial

Busselton Regional Airport Master Plan

 

 

X

 

X

 

X

 

X

 

Key Goal Area 5:  Cared for and Enhanced Environment

Action

Responsibility

Informing Policy or Plan

External/Grant Funding

14/15

 

15/16

16/17

17/18

Port Geographe Development (amended)

Further refine the new development deed for Port Geographe dependent upon negotiations with the State and a potential new developer (if one is found)

Corporate

 

 

 

 

 

 

X

 

X

 

 

Port Geographe Coastal / Water Management

(amended)

Finalise a new Waterway Management deed under the State in relation to Port Geographe and put in place appropriate audit processes

Corporate

 

 

 

 

 

X

 

 

 

 

 

 

Vidler Road Water facility Expansion (new)

Plan for and progress the expansion of the Vidler Road Waste Facility

Operations

 

 

Yes

 

X

 

X

 

X

 

X

Meelup Regional Park (amended to replace separate actions Meelup Regional Park – Meelup Beach and Meelup Regional Park – Coastal Nodes)

Progressively implement the Meelup Beach Master Plan and Coastal Nodes Plan

Environment

 

 

 

X

 

X

 

X

 

X

Energy Action Plan (new)

Continue to implement and review the Busselton Energy Action Plan

Environment

 

Energy Action Plan

 

 

X

 

X


X

 

X

 


 

Key Goal Area 6:  Cared for and Enhanced Environment

Action

Responsibility

Informing Policy or Plan

External/Grant Funding

14/15

 

15/16

16/17

17/18

Cultural Development (new)

Continue our sister city relationship with Sugito to foster understanding between both communities and the peoples of Australia and Japan

Governance

 

 

 

X

 

X


X

 

X

Contracts Register (new)

Implement a City contract register to assist in effective and timely contract management

 

Corporate

 

 

 

X

 

 

 

 

The final section of the Corporate Business Plan relates to measuring our progress against the actions listed in the Corporate Business Plan, in addition to our progress regarding ongoing service delivery and operational effectiveness. To facilitate this, it is proposed that Council adopt as part of the Corporate Business Plan 21 key performance indicators (KPIs).  The KPIs reflect the same KPIs currently being reported on however it is recommended that the KPI in relation to staff satisfaction be removed.  The current KPI requires the improvement in overall staff satisfaction to be reported annually as per the annual employee survey however the City does not currently conduct an annual employee survey.  Instead it is recommended that Council consider staff satisfaction as a KPI to be allocated to the CEO from time to time as it deems appropriate. 

 

CONCLUSION

 

The City of Busselton Corporate Business Plan 2014/2015 -2017/2018 is a key component of the integrated planning requirements of the Department of Local Government and Communities.  It is believed that the Corporate Business Plan 2014/2015 – 2017/2018 successfully integrates all relevant information from the City’s current Long Term Financial Plan; together with the City’s existing asset management plans and the Workforce Plan 2013.  The draft Corporate Business Plan meets all of the regulatory requirements and provides a strong basis for the City to deliver upon the wishes of the community outlined in the City of Busselton Strategic Community Plan 2013. 

 

OPTION

 

The Council may choose to alter any of the components or wording of the proposed City of Busselton Corporate Business Plan 2014/2015-2017/2018 as it sees fit.

 

TIMELINE FOR IMPLEMENTATION OF RECOMMENDATION

 

The City of Busselton Corporate Business Plan 2014/2015 – 2017/2018 will be effective from 1 July 2014 with the services and actions contained within the Plan to be implemented over the four year life of the Plan, as identified, and the plan to be reviewed annually 

 

 

OFFICER RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That the Council:

 

1.    Adopts the Corporate Business Plan 2014/15 – 2017/18 in the form attached to this report.

 

  


Council                                                                                      65                                                                      25 June 2014

9.               Chief Executive Officer's Report

15.1           COUNCILLORS' INFORMATION BULLETIN

SUBJECT INDEX:

Councillors' Information

STRATEGIC OBJECTIVE:

Governance systems that deliver responsible, ethical and accountable decision-making.

BUSINESS UNIT:

Executive Services

ACTIVITY UNIT:

Governance Services

REPORTING OFFICER:

Reporting Officers - Various .

AUTHORISING OFFICER:

Chief Executive Officer - Mike Archer

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Letter to Economic Regulation Authority – Royalties for Regions

Attachment b    Thankyou Letter from Geographe Primary School  

Attachment c    Letter of Appreciation from City of Joondalup

Attachment d   Busselton Jetty Reference Group Meeting Minutes - 8 May 2014  

Attachment e    Urban Art Project - Dunsborough Artificial Reef  

Attachment f    Planning Applications Received  

Attachment g   Planning Applications Determined  

Attachment h   State Administrative Tribunal Appeals Involving City of Busselton   

  

 

PRÉCIS

 

This report provides an overview of a range of information that is considered appropriate to be formally presented to the Council for its receipt and noting.  The information is provided in order to ensure that each Councillor, and the Council, is being kept fully informed, while also acknowledging that these are matters that will also be of interest to the community.

 

Any matter that is raised in this report as a result of incoming correspondence is to be dealt with as normal business correspondence, but is presented in this bulletin for the information of the Council and the community.

 

 

INFORMATION BULLETIN

15.1.1    Letter to Economic Regulation Authority – Royalties for Regions

 

Attachment A is correspondence from the City to the Economic Regulation Authority in relation to recommendation 4 of the draft report on the inquiry to Microeconomic Reform in WA - to repeal the Royalties for Regions legislation.

15.1.2    Thank you letter from Geographe Primary School - Assistance and contribution toward National Walk to School Day

 

Attachment B is a copy of correspondence from Amber Lane, Health Education Coordinator at Geographe Primary School, thanking the City for its contribution towards National Walk to School Day.

15.1.3    Thank you Letter from City of Joonadalup

 

Attachment C is a copy of correspondence received from Gary Hunt, CEO, City of Joondalup thanking the City for the generous hospitality offered during a visit on Friday 16 May 2014.

15.1.4    Busselton Jetty Reference Group Meeting 8 May 2014 - Minutes

 

A meeting of the Busselton Jetty Advisory Committee was held on 8 May 2014. The meeting minutes are provided at Attachment D.

15.1.5    Department Circular - Consultation Paper on the Review of the Caravan Parks and Camping Grounds Act 1995

 

A Department Circular regarding the Consultation Paper on the Review of the Caravan Parks and Camping Grounds Act 1995 was received from Jennifer Matthews, Director General, Department of Local Government and Communities on 30 May 2014:

 

“CIRCULAR NO 19-2014

COMMENTS SOUGHT – CONSULTATION PAPER ON THE REVIEW OF THE CARAVAN PARKS AND CAMPING GROUNDS ACT 1995

I am pleased to announce that, as part of implementing Recommendation One of the Western Australian Caravan and Camping Action Plan 2013-2018, the Department of Local Government and Communities has released a consultation paper to facilitate the development of new caravan parks and camping grounds legislation.

 

The State Government proposes to develop the new legislation to replace the existing Caravan Parks and Camping Grounds Act 1995. The overarching objectives are to provide a legislative framework which meets the needs of consumers, operators and regulating authorities, reduces red tape and safeguards the health and safety of everyone.

 

The Department urges you to provide comments on Consultation Paper ‘Proposal for Caravan Parks and Camping Grounds Legislation’.

 

A promotional flyer has also been produced to raise awareness of the consultation period which runs from 30 May until 1 September 2014. It would be greatly appreciated if you could distribute or display the flyer to assist in the public consultation process.

 

The consultation paper, a feedback form to assist with preparation of submissions and the flyer can be found on the Department’s website at: www.dlgc.wa.gov.au/CPCG-Consultation-Paper.

A hardcopy of the consultation paper and flyer will also be posted to all local governments. If you have any queries, please contact Ms Hui Zhang, Principal Policy Officer, on telephone (08) 6552 1562 or via email: caravan@dlgc.wa.gov.au Submissions close on Monday, 1 September 2014.”

15.1.6    Urban Art Project – Dunsborough Artificial Reef

 

Information relating to the Urban Art Project – Dunsborough Artificial Reef is provided at

Attachment E.

15.1.7    Local Government Financial Assistance Grants - Commonwealth Budget Impact

 

The Correspondence below has been received from Ross Earnshaw, Manager, Reform Implementation, Department of Local Government and Communities on 16 May 2014:

 

“To all local governments,

  

Local Government Financial Assistance Grants - Commonwealth Budget Impact

 

On 13 May 2014, the Commonwealth Government made several announcements in the Budget that will impact upon Financial Assistance Grants (FAGs) for Western Australia.

 INDEXATION PAUSE

 

The annual increase to the National funding pool for General Purpose Grants and Local Road Grants is calculated by indexing the previous year’s funding pool with the following formula:

 

Population of Australia

X

CPI Number

Previous Population of Australia

Previous CPI Number

 

This indexation formula will not be applied to the National FAGs pool for the next 3 financial years (2014/15, 2015/16 & 2016/17).

 

The Commonwealth has factored in small increases to the General Purpose Grants for WA over these 3 years. The Commonwealth has also factored in a small increase to the Local Road Grants in 2014/15 due to the balancing of the 2013/14 grant pool. There will be no increases in Local Road Grants in the following 2 years. The reason is that there are 2 steps in the calculation of each grant pool, the indexation of the National FAGs pool, and secondly the split up of the National FAGs pool among the States and Territories.

 

The Local Road Grant pool is split on the basis of fixed historic shares, of which WA receives 15.29%. The General Purpose pool is split on a per capita basis, so the faster growing States such as WA will receive an increasing share of the General Purpose pool for the next three years.

 

The breakdown for WA is as follows:

 

 

2013/14

2014/15

Increase

Increase

General Purpose

170,188,704

173,467,865

3,279,161

1.93%

Local Roads

106,956,275

107,463,450

507,175

0.47%

 

2014/15

2015/16

Increase

Increase

General Purpose

173,467,865

176,054,668

2,586,803

1.49%

Local Roads

107,463,450

107,463,450

0

0.00%

 

2015/16

2016/17

Increase

Increase

General Purpose

176,054,668

178,618,195

2,563,527

1.46%

Local Roads

107,463,450

107,463,450

0

0.00%

 

Please note that these figures are notional only, and will vary (up or down) once the Commonwealth Treasurer calculates the final grants for 2013/14. The above forward estimates will be adjusted accordingly.

 

ADVANCE PAYMENT

 

Since 2009/10, the Commonwealth Government has made advance payments of FAGs. This will not apply in 2014/15. Please ensure that you do not factor in any advance payments when calculating your 2014/15 budget.

 

If you have any queries please contact James Harmer on (08) 6552 1588 or grant.commission@dlgc.wa.gov.au.”


 

15.1.8    Recreational Boating Facilities Scheme: Round 19 Application for Funding — Port Geographe Marine Structures Plan

 

The Correspondence below has been received from Dean Nalder MLA, Minister for Transport on 4 June 2014:

 

“I am pleased to advise that a grant of $45,000 has been approved for the above project, subject to several conditions.

 

The Department of Transport (DoT) will administer the grant on my behalf, monitoring the project's progress and your compliance with the conditions.

 

The grant is subject to a funding agreement being executed and returned to the Recreational Boating Facilities Scheme (RBFS) Grants Officer within two months of the date on the agreement's covering letter, or such later date as agreed in writing by DoT's Director Maritime Planning. If this condition is not met, my approval for this grant will lapse. The funding agreement will be sent to you by DoT.

 

The grant is also subject to all of the conditions in the agreement, including that specific to this project:

1. DoT Fremantle approves the scope of the planning study before commencement.

2. Resulting planning documents are provided to DoT in electronic format.

 

I look forward to hearing that this project has been successfully completed. Should you have any queries, please contact the RBFS Grants Officer on 9435 7513 or at rbfs@transport.wa.gov.au.”

15.1.9    Current Active Tenders

 

Creation Date: 05/06/14

 

RFT05/14       Supply and Delivery of Horticultural, Landscaping, Revegetation and Turf Services

The City of Busselton invited tenders for the Supply and Delivery of Horticultural, Landscaping, Revegetation and Turf Services. The City of Busselton intends to appoint a panel of contractors for providing the goods and services specified in the request for tender. The contract will run for a period of two (2) years with two (2) one (1) year extensions, exercisable at the City’s discretion. The tender was advertised on 12 April 2014 and closed on 29 April 2014. The City received fifteen (15) submissions. Council approved the award of tender panel contracts to the recommended contractors at its meeting on 28 May 2014. The contracts were awarded shortly afterwards with a commencement date of 8 July 2014.

 

RFT06/14       Green Waste Processing

The City of Busselton invited tenders for Green Waste Processing, either at the City’s waste processing sites or at a local third party waste processing site. The contract will run for five (5) years with a one (1) year extension, exercisable at the City’s discretion. The tender was advertised on 19 April 2014 and closed on 7 May 2014. The City received two submissions, which are currently being evaluated. The contract value is estimated to be approximately $625,000 over five years and accordingly, a report to council for consideration, and if thought fit approval, of the recommendation of the evaluation panel. It is currently anticipated that consideration of this contract award will be included in the council meeting on 25 June, with the contract start date on or about 1 July.

 

RFT07/14       Quarry Products

The City of Busselton invited tenders for the supply of Quarry products. The City intends to appoint a panel of contractors. This request for tender combines two current tender contracts – Quarry Products and Supply of Gravel Course Base Material, therefore although it is anticipated that the contract will commence on or about 1 August 2014, materials covered by the current Quarry products tender contract will not be purchased under RFT07/14 until the current Quarry products contract expires on 1 October 2014. The panel contracts will run until 30 July 2017 with the option of two (2) one (1) year extensions. The tender was advertised on 17 May and closed on 3 June 2014. The City received five submissions which are currently being evaluated. It is anticipated that a report to Council recommending preferred contractors to be appointed to the panel will be presented for consideration by Council at the meeting on 9 July.

15.1.10           Planning & Development Services Statistics

 

Planning Applications

 

Attachment F (PDS1) is a report detailing all Planning Applications received by the City between 01 and 30 May, 2014.  Fifty nine formal applications were received during this period.

 

Attachment G (PDS2) is a report detailing all Planning Applications determined by the City between 01 and 30 May, 2014.  A total of fifty five applications (including subdivision referrals) were determined by the City during this period with all approved / supported.

15.1.11           State Administrative Tribunal (SAT) Appeals

 

Attachment H (PDS3) is a list showing the current status of State Administrative Tribunal Appeals involving the City of Busselton as at 30 May, 2014.

 

OFFICER RECOMMENDATION

That the items from the Councillors’ Information Bulletin be noted:

·    15.1.1   Letter to Economic Regulation Authority – Royalties for Regions

·    15.1.2   Thank you letter from Geographe Primary School - Assistance and contribution toward National Walk to School Day

·    15.1.3   Thank you Letter from City of Joonadalup

·    15.1.4   Busselton Jetty Reference Group Meeting 8 May 2014 - Minutes

·    15.1.5   Department Circular - Consultation Paper on the Review of the Caravan Parks and Camping Grounds Act 1995

·    15.1.6   Urban Art Project – Dunsborough Artificial Reef

·    15.1.7   Local Government Financial Assistance Grants - Commonwealth Budget Impact

·    15.1.8   Recreational Boating Facilities Scheme: Round 19 Application for Funding — Port Geographe Marine Structures Plan

·    15.1.9   Current Active Tenders

·    15.1.10 Planning & Development Services Statistics

·    15.1.11 State Administrative Tribunal (SAT) Appeals

 

 

 


Council                                                                                      69                                                                      25 June 2014

10.4           Policy and Legislation Committee - 19/06/2014 - REVIEW OF DELEGATIONS

SUBJECT INDEX:

Authorised Delegation of Power / Authority

STRATEGIC OBJECTIVE:

Governance systems that deliver responsible, ethical and accountable decision-making.

BUSINESS UNIT:

Governance Services

ACTIVITY UNIT:

Governance

REPORTING OFFICER:

Manager, Governance Services - Lynley Rich

AUTHORISING OFFICER:

Chief Executive Officer - Mike Archer

VOTING REQUIREMENT:

Absolute Majority

ATTACHMENTS:

Attachment a   Existing Local Government Act Delegations to CEO and Committees  

 

This item was considered by the Policy and Legislation Committee at its meeting on 19 June 2014, the recommendations from which have been included in this report. 

 

It is presented as a late report for the 25 June 2014 Council meeting to complete the required statutory review.

 

PRÉCIS

 

The Local Government Act 1995 requires delegations made under that Act to be reviewed by the delegator at least once each financial year.  This review is to fulfil that requirement for the 2013/2014 financial year.  This report is presented for the Council to determine whether or not to continue the delegations in their current form.  Minor changes are recommended to the conditions on the delegation that enables the CEO to consider claims against the local government, and the conditions relating to the donations and sponsorships fund, however, no other changes are otherwise recommended.

 

The reason that no other changes are recommended is that the delegations have been refined over the past seven years since they were developed using the Department of Local Government’s (still current) Guideline Relating to Delegations.   They are considered to continue to provide an appropriate level of decision-making power to the CEO and Committees and are closely examined during any compliance audit.

 

 

BACKGROUND

 

Council has the ability to delegate the exercise of powers and discharge of duties to its Chief Executive Officer or to Committees.  Delegations are required to be reviewed by the delegator (in this case the Council) at least once every financial year. 

 

STATUTORY ENVIRONMENT

 

Section 5.42 of the Local Government Act 1995 provides the Council with the ability to delegate powers and duties to its CEO.  This review is to comply with the requirements of Section 5.46 of the Act.  Some powers and duties cannot be delegated in accordance with Section 5.43 of the Act, such as matters that require an absolute majority decision of the Council. 

 

Section 5.16 of the Act provides the ability for powers and duties to be delegated to Committees.  This review is to comply with the requirements of Section 5.18 of the Act.

 

All delegations must be contained in a register, which is a public document. Wherever a decision is made under delegated authority, records of the decision must be kept in accordance with the Local Government (Administration) Regulations 1996.

 

RELEVANT PLANS AND POLICIES

 

No implications applicable to the review of delegations, while noting that several of the powers and duties delegated need to be carried out in accordance with applicable policy provisions.

 

FINANCIAL IMPLICATIONS

 

Nil, other than utilising delegated authority creates organisational efficiencies.  Without a system of delegated authority in place, a significant number of day-to-day local government decisions would have to be referred to the Council as agenda reports.

 

STRATEGIC COMMUNITY OBJECTIVES

 

Delegations enable officers to carry out some of the powers and duties of the local government (the Council) which reduces the volume of matters being referred to Council for a decision.  This can effectively reduce the turnaround time for some matters and enables the Council to use its time to undertake its more strategic role.

 

This contributes to the Strategic Community Objective of Governance systems that deliver responsible, ethical and accountable decision-making.  It also provides for efficient and effective decision-making practices leading to a better use of limited resources.

 

RISK ASSESSMENT

 

Not required for a review undertaken in accordance with statutory requirements.

 

CONSULTATION

 

The current delegations were developed in accordance with the Department of Local Government's Delegations guidelines, which remain current, some years ago and have been continually refined ever since.

 

OFFICER COMMENT

 

There are a wide range of powers and duties delegated to the CEO in accordance with the powers provided by Sections 5.42(1)(a) and (b) of the Local Government Act 1995.  These are largely recommended to continue unchanged, with the exception of updating the conditions on the delegations relating to Claims Against the Local Government and the Donations and Sponsorships Fund.  The following table provides an overview of the current delegations and an explanation, where necessary, of the powers exercised by the CEO.  The conditions relating to 6E and 10A are recommended to be updated. 

 

3A

Legislative Function

To determine applications received by the City in accordance with any Local Law and to enforce the provisions of Local Laws.

 

3B

Executive Function

To determine applications received by the City to access, use or otherwise conduct activities on land or property.

 

3D

Notices Requiring Things to be Done

To exercise the powers and discharge the duties of the local government under Section 3.25(1), 3.26(2) and 3.26(3).

This provides for the ability to require actions from an owner or occupier relating to unsightly land, overgrown vegetation, rubbish etc.

3E

General Procedure for Entering Property

To authorise persons on behalf of the local government for the purposes of discharging the duties under Section 3.31(2).

A person requires authorisation in order to enter property.  This enables the CEO to authorise others instead of requiring Council approval.

3F

Power to Remove and Impound

To authorise employees on behalf of the local government for the purposes of discharging the duties under Section 3.39 and 3.40A(1).

A person requires authorisation in order to impound vehicles etc.  This enables the CEO to authorise others instead of requiring Council approval.

3G

Disposing of Uncollected Goods

To exercise the powers and discharge the duties of the local government under Section 3.47(2) and 3.47(2a).

Enables the CEO to dispose of impounded goods when not collected in a specified time, including vehicles.

3H

Thoroughfare Closure

To exercise the powers and discharge the duties of the local government under Section 3.50(1), 3.50(1a), 3.50(4), 3.50(6) and 3.50A.

Enables the CEO to require the closure of roads.

3J

Inviting and Awarding Tenders

To publicly invite tenders by determining the written criteria for deciding which tender should be accepted and to award tenders with a contract value up to $300,000, subject to conditions.

 

3K

Acquiring and Disposing of Property

To exercise the powers and discharge the duties of the local government under Sections 3.58(2) and 3.58(3) and acquire property on the local government's behalf.  The value of the property shall not exceed $100,000.

Enables the CEO to dispose of property of the local government of relatively low value and may include goods surplus to requirements, such as plant, office furniture etc.

5A

Provision of Urgent Legal Services

To provide authorisation in accordance with Council policy “Legal Representation for Council members and employees” for urgent legal services to a maximum value of $10,000.

 

5B

Directions Regarding Unauthorised Development

To give directions in relation to unauthorised development and to authorise any action available to the responsible authority under the Planning and Development Act 2005. 

 

6A

Payments from Municipal Fund

To exercise the powers and discharge the duties of the local government in accordance with regulation 12 of the Local Government (Financial Management) Regulations 1996.

Enables the payment of creditors without specific Council approval.  All payments made must be reported to Council.

6B

Power to Defer, Grant Discounts, Waive or Write Off Debts

To exercise the powers and discharge the duties of the local government under Sections 6.12(1)(b), 6.12(1)(c) and 6.12(3) of the Local Government Act 1995.

Enables the CEO to deal with minor fee waivers and concessions and debt write-off requirements, to a maximum of $2000.

6C

Rates and Service Charges

To exercise the powers and discharge the duties of the local government under Section 6.49, 6.50(1), 6.50(2), 6.56(1), 6.60(2), 6.60(3), 6.60(4), 6.64(1), 6.64(3), 6.71(1), 6.74(1), 6.76(4), 6.76(5), schedule 6.2 clause 1(1) and schedule 6.3 clauses 1(4) and 4(1).

Enables the CEO to determine due dates for rates and to take recovery action for unpaid rates.

6D

Investment

To invest surplus funds in accordance with the Direct Investments section of the Council's investment policy. 

Enables funds to be invested by the CEO as set out in the Council policy.

6E

Payments from Sponsorship and Donations Fund

To determine the allocation of donations and sponsorships from the fund established for this purpose.

This delegation currently requires that individual payments do not exceed $500.  It is proposed that this is changed to not generally exceed $500, however, can be approved at a higher amount following consultation with the Finance Committee.

9A

Appointment of Authorised Persons

To authorise persons, or classes of persons, on behalf of the local government for the purposes of performing particular functions in accordance with Section 9.10(1) and 9.10(2) of the Local Government Act 1995.

A person requires authorisation in order to take enforcement actions.  This enables the CEO to authorise others instead of requiring Council approval.

9B

Authorising Common Seal

To authorise the affixing of the Common Seal of the City to a document that needs the City's Common Seal to be legally effective.

While the CEO can authorise the affixing of the Common Seal so Council approval is not required, it is also necessary for the document to be signed by the Mayor.

10A

Claims Against the Local Government

To consider claims against the local government for damage to property and either accept or deny liability.

This delegation currently has a $300 limit.  It is proposed that this is increased to $500 to match the City’s insurance premium excess amount.

 

With regard to delegation 6E, the delegation currently states that any approved sponsorship donation is not to exceed $500.  However, there have been times when a larger amount has been considered appropriate and the matter is discussed with the Finance Committee.  It is proposed that the conditions are updated to enable the approval to proceed without the need for a report to Council.

 

Existing delegation 10A relating to Claims Against the Local Government currently only enables a payment of $300 if the CEO accepts liability.  This delegation is typically used for small claims accompanied by a waiver and it is considered appropriate to increase the limit to $500 to align with the City’s insurance premium excess amount.

 

All other delegations are recommended to continue unchanged.  This report also seeks to review the delegations that the Council has made to Committees.  No changes are recommended.

 

3I

Meelup Regional Park Management Committee

To exercise the powers and discharge the duties of the local government under Section 3.54(1) of the Local Government Act 1995 as they relate specifically to Meelup Regional Park, in accordance with the City's Strategic Plan, Park's management plan and Council's budget.

6F

Busselton Settlement Art Project Steering Committee

To approve the disbursement of funds as approved by the Council in its annual budget for the purpose of raising funds for the project.

7A

Audit Committee

To meet with the auditor on behalf of the local government in accordance with the requirements of Section 7.12A(2).

 

CONCLUSION

 

The existing delegations have served the organisation well and provide a sufficient level of authority to the CEO and Committees to enable timely consideration of day to day local government matters.  It is recommended that all existing delegations are continued, subject to the minor changes recommended.

 

OPTIONS

 

The Council may decide that it requires more or less powers and duties to be delegated to the CEO or Committees, or that it wishes to place additional conditions on any of the delegations.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Any determinations on the delegations will be effective immediately the Council's decision is made.

 

OFFICER RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That the Council, having conducted the statutory annual review of delegations made under the Local Government Act 1995:

 

1.    delegates to the CEO of the City of Busselton in accordance with Section 5.42(1)(a) and (b) of the Local Government Act 1995 the following powers and duties:

 

3A

Legislative Function

To determine applications received by the City in accordance with a Local Law made by the City of Busselton in accordance with Subdivision 2 of Division 2 of Part 3 of the Local Government Act 1995 and to enforce the provisions of those local laws and to otherwise exercise the powers and discharge the duties of the local government under those local laws.

3B

Executive Function

To determine applications received by the City to access, use or otherwise conduct activities on land or property that is owned by or vested with the City of Busselton.

3D

Notices Requiring Things to be Done

To exercise the powers and discharge the duties of the local government under Section 3.25(1), 3.26(2) and 3.26(3) of the Local Government Act 1995.

3E

General Procedure for Entering Property

To authorise persons on behalf of the local government for the purposes of discharging the duties under Section 3.31(2) of the Local Government Act 1995.

3F

Power to Remove and Impound

To authorise employees on behalf of the local government for the purposes of discharging the duties under Section 3.39 and 3.40A(1) of the Local Government Act 1995.

3G

Disposing of Uncollected Goods

To exercise the powers and discharge the duties of the local government under Section 3.47(2) and 3.47(2a) of the Local Government Act 1995.

3H

Thoroughfare Closure

To exercise the powers and discharge the duties of the local government under Section 3.50(1), 3.50(1a), 3.50(4), 3.50(6) and 3.50A of the Local Government Act 1995 and regulation 6(3) of the Local Government (Functions and General) Regulations 1996.

3J

Inviting Tenders and Choice of Tender

To exercise the powers and discharge the duties of the local government under Regulation 14 of the Local Government (Functions and General) Regulations to publicly invite tenders by determining the written criteria for deciding which tender should be accepted.

To exercise the powers and discharge the duties of the local government under Regulation 18 of the Local Government (Functions and General) Regulations relating to Choice of Tender.

Conditions

The delegation is subject to:

a)         Utilising the standard selection criteria as per Policy 031;

b)        Following the City’s operational practice utilising tender evaluation processes and documentation developed by WALGA;

c)         Compliance with the requirements of the City’s Purchasing Policy as it relates to tendering; and

d)        Acceptance of a tender is not to exceed a contract value of $300,000.

3K

Acquiring and Disposing of Property

To exercise the powers and discharge the duties of the local government under Sections 3.58(2) and 3.58(3) of the Local Government Act 1995, and further to acquire property on the local government's behalf. 

Conditions

The value of the property shall not exceed $100,000 in accordance with Section 5.43(d) of the Local Government Act 1995.

5A

Provision of Urgent Legal Services

To provide authorisation in accordance with Council policy "Legal Representation for Council members and employees" for urgent legal services to a maximum of $10,000. 

Conditions

The determination must be made in accordance with the provisions of the Council policy "Legal Representation for Council members and employees".

5B

Directions Regarding Unauthorised Development

To give directions in relation to unauthorised development and to authorise any action available to the responsible authority under the Planning and Development Act 2005 incidental to such written direction. 

6A

Payments from Municipal Fund

To exercise the powers and discharge the duties of the local government in accordance with regulation 12 of the Local Government (Financial Management) Regulations 1996, in relation to Section 6.10 of the Local Government Act 1995.

6B

Power to Defer, Grant Discounts, Waive or Write Off Debts

To exercise the powers and discharge the duties of the local government under Sections 6.12(1)(b), 6.12(1)(c) and 6.12(3) of the Local Government Act 1995.

Conditions

Any waiver or granting of a concession shall only be for up to $2000 and considered solely on its merits; and any debt write off approved shall be less than $1000 if it is more than 12 months old or less than $200 if it is between 90 days and 12 months old.

6C

Rates and Service Charges

To exercise the powers and discharge the duties of the local government under Section 6.49, 6.50(1), 6.50(2), 6.56(1), 6.60(2), 6.60(3), 6.60(4), 6.64(1), 6.64(3), 6.71(1), 6.74(1), 6.76(4), 6.76(5), schedule 6.2 clause 1(1) and schedule 6.3 clauses 1(4) and 4(1) of the Local Government Act 1995.

Conditions

The delegation shall be exercised within the limitations identified in delegation LGA 3K regarding the value of property.

6D

Investment

To invest surplus funds in accordance with the Direct Investments section of the Council's investment policy. 

Conditions

Council approval is required for any investment in Managed Investments.

6E

Payments from Sponsorship and Donations Fund

To determine the allocation of donations and sponsorships from the fund established for this purpose in accordance with the Council's tiered funding scheme.

Conditions

Individual payments from this fund are generally not to exceed $500, however, can be approved where consultation with the Finance Committee has first occurred.

9A

Appointment of Authorised Persons

To authorise persons, or classes of persons, on behalf of the local government for the purposes of performing particular functions in accordance with Section 9.10(1) and 9.10(2) of the Local Government Act 1995.

9B

Authorising Common Seal

To authorise the affixing of the Common Seal of the City to a document that needs the City's Common Seal to be legally effective and that is in one or more of the following categories -

1.            documents required to satisfy conditions of subdivision and/or development approval;

2.            documents required to effect the transfer of land as part of a settlement transaction (sale and purchase);

3.            documents required to secure the repayment of a loan granted by the City, a loan granted to the City by a third party and/or to secure the pre-funding of infrastructure works by the City;

4.            documents required to effect the grant of leasehold interests in the land either by the City to a third party, or by a third party to the City;

5.            documents required to effect the grant of a licence either by the City to a third party, or by a third party to the City;

6.            documents required to effect the subdivision of land, including the strata titling of land;

7.            documents which are capable of registration and/or lodgement at Landgate (WA Land Titles office); and

8.            documents that are necessary or appropriate to enable a CEO to carry out his functions under any written law.


Conditions

The document must not be inconsistent with a Council policy or resolution.  While the CEO can authorise the affixing of the Common Seal to a document as classified, it is noted that it is also necessary for the document to be signed by both the Mayor and the CEO (or a senior employee authorised by the CEO).

10A

Claims Against the Local Government

To consider claims against the local government for damage to property and either accept or deny liability.

Conditions

The claim shall not exceed $500.  Payment up to $500 is able to be made upon receipt of a release form.

 

2.    delegates to Committees in accordance with Section 5.16 of the Local Government Act 1995 the following powers and duties: 

 

3I

Meelup Regional Park Management Committee

To exercise the powers and discharge the duties of the local government under Section 3.54(1) of the Local Government Act 1995 as they relate specifically to Meelup Regional Park, in accordance with the City's Strategic Plan, Park's management plan and Council's budget.

Conditions

Normal maintenance and servicing (eg. building maintenance and operations, maintenance of grassed areas and surrounds, rubbish removal, etc) of the coastal foreshore recreation areas at the localities of Eagle Bay, Meelup Beach and Castle Rock are to be undertaken by the City; and all law enforcement (eg bush fire control, litter control, etc) is to be exercised by the City's Ranger and Fire Services.

6F

Busselton Settlement Art Project Steering Committee

To approve the disbursement of funds as approved by the Council in its annual budget for the purpose of raising funds for the project.

Conditions

The budget provided by the Council is to be used for fundraising events and initiatives, including the marketing and promotion of such events and initiatives.

7A

Audit Committee

To meet with the auditor on behalf of the local government in accordance with the requirements of Section 7.12A(2) of the Local Government Act 1995.

 

 

Note:  The Committee made a minor change to the conditions on Delegation 6E to clarify when payments of sponsorship can exceed $500.

 

 

COMMITTEE RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That the Council, having conducted the statutory annual review of delegations made under the Local Government Act 1995:

 

1.    delegates to the CEO of the City of Busselton in accordance with Section 5.42(1)(a) and (b) of the Local Government Act 1995 the following powers and duties:

 

3A

Legislative Function

To determine applications received by the City in accordance with a Local Law made by the City of Busselton in accordance with Subdivision 2 of Division 2 of Part 3 of the Local Government Act 1995 and to enforce the provisions of those local laws and to otherwise exercise the powers and discharge the duties of the local government under those local laws.

3B

Executive Function

To determine applications received by the City to access, use or otherwise conduct activities on land or property that is owned by or vested with the City of Busselton.

3D

Notices Requiring Things to be Done

To exercise the powers and discharge the duties of the local government under Section 3.25(1), 3.26(2) and 3.26(3) of the Local Government Act 1995.

3E

General Procedure for Entering Property

To authorise persons on behalf of the local government for the purposes of discharging the duties under Section 3.31(2) of the Local Government Act 1995.

3F

Power to Remove and Impound

To authorise employees on behalf of the local government for the purposes of discharging the duties under Section 3.39 and 3.40A(1) of the Local Government Act 1995.

3G

Disposing of Uncollected Goods

To exercise the powers and discharge the duties of the local government under Section 3.47(2) and 3.47(2a) of the Local Government Act 1995.

3H

Thoroughfare Closure

To exercise the powers and discharge the duties of the local government under Section 3.50(1), 3.50(1a), 3.50(4), 3.50(6) and 3.50A of the Local Government Act 1995 and regulation 6(3) of the Local Government (Functions and General) Regulations 1996.

3J

Inviting Tenders and Choice of Tender

To exercise the powers and discharge the duties of the local government under Regulation 14 of the Local Government (Functions and General) Regulations to publicly invite tenders by determining the written criteria for deciding which tender should be accepted.

To exercise the powers and discharge the duties of the local government under Regulation 18 of the Local Government (Functions and General) Regulations relating to Choice of Tender.

Conditions

The delegation is subject to:

a)         Utilising the standard selection criteria as per Policy 031;

b)        Following the City’s operational practice utilising tender evaluation processes and documentation developed by WALGA;

c)         Compliance with the requirements of the City’s Purchasing Policy as it relates to tendering; and

d)        Acceptance of a tender is not to exceed a contract value of $300,000.

3K

Acquiring and Disposing of Property

To exercise the powers and discharge the duties of the local government under Sections 3.58(2) and 3.58(3) of the Local Government Act 1995, and further to acquire property on the local government's behalf. 

Conditions

The value of the property shall not exceed $100,000 in accordance with Section 5.43(d) of the Local Government Act 1995.

5A

Provision of Urgent Legal Services

To provide authorisation in accordance with Council policy "Legal Representation for Council members and employees" for urgent legal services to a maximum of $10,000. 

Conditions

The determination must be made in accordance with the provisions of the Council policy "Legal Representation for Council members and employees".

5B

Directions Regarding Unauthorised Development

To give directions in relation to unauthorised development and to authorise any action available to the responsible authority under the Planning and Development Act 2005 incidental to such written direction. 

6A

Payments from Municipal Fund

To exercise the powers and discharge the duties of the local government in accordance with regulation 12 of the Local Government (Financial Management) Regulations 1996, in relation to Section 6.10 of the Local Government Act 1995.

6B

Power to Defer, Grant Discounts, Waive or Write Off Debts

To exercise the powers and discharge the duties of the local government under Sections 6.12(1)(b), 6.12(1)(c) and 6.12(3) of the Local Government Act 1995.

Conditions

Any waiver or granting of a concession shall only be for up to $2000 and considered solely on its merits; and any debt write off approved shall be less than $1000 if it is more than 12 months old or less than $200 if it is between 90 days and 12 months old.

6C

Rates and Service Charges

To exercise the powers and discharge the duties of the local government under Section 6.49, 6.50(1), 6.50(2), 6.56(1), 6.60(2), 6.60(3), 6.60(4), 6.64(1), 6.64(3), 6.71(1), 6.74(1), 6.76(4), 6.76(5), schedule 6.2 clause 1(1) and schedule 6.3 clauses 1(4) and 4(1) of the Local Government Act 1995.

Conditions

The delegation shall be exercised within the limitations identified in delegation LGA 3K regarding the value of property.

6D

Investment

To invest surplus funds in accordance with the Direct Investments section of the Council's investment policy. 

Conditions

Council approval is required for any investment in Managed Investments.

6E

Payments from Sponsorship and Donations Fund

To determine the allocation of donations and sponsorships from the fund established for this purpose in accordance with the Council's tiered funding scheme.

Conditions

Individual payments from this fund are not to exceed $500 unless consultation with the Finance Committee has first occurred.

9A

Appointment of Authorised Persons

To authorise persons, or classes of persons, on behalf of the local government for the purposes of performing particular functions in accordance with Section 9.10(1) and 9.10(2) of the Local Government Act 1995.

9B

Authorising Common Seal

To authorise the affixing of the Common Seal of the City to a document that needs the City's Common Seal to be legally effective and that is in one or more of the following categories -

1.            documents required to satisfy conditions of subdivision and/or development approval;

2.            documents required to effect the transfer of land as part of a settlement transaction (sale and purchase);

3.            documents required to secure the repayment of a loan granted by the City, a loan granted to the City by a third party and/or to secure the pre-funding of infrastructure works by the City;

4.            documents required to effect the grant of leasehold interests in the land either by the City to a third party, or by a third party to the City;

5.            documents required to effect the grant of a licence either by the City to a third party, or by a third party to the City;

6.            documents required to effect the subdivision of land, including the strata titling of land;

7.            documents which are capable of registration and/or lodgement at Landgate (WA Land Titles office); and

8.            documents that are necessary or appropriate to enable a CEO to carry out his functions under any written law.


Conditions

The document must not be inconsistent with a Council policy or resolution.  While the CEO can authorise the affixing of the Common Seal to a document as classified, it is noted that it is also necessary for the document to be signed by both the Mayor and the CEO (or a senior employee authorised by the CEO).

10A

Claims Against the Local Government

To consider claims against the local government for damage to property and either accept or deny liability.

Conditions

The claim shall not exceed $500.  Payment up to $500 is able to be made upon receipt of a release form.

 

2.    delegates to Committees in accordance with Section 5.16 of the Local Government Act 1995 the following powers and duties: 

 

3I

Meelup Regional Park Management Committee

To exercise the powers and discharge the duties of the local government under Section 3.54(1) of the Local Government Act 1995 as they relate specifically to Meelup Regional Park, in accordance with the City's Strategic Plan, Park's management plan and Council's budget.

Conditions

Normal maintenance and servicing (eg. building maintenance and operations, maintenance of grassed areas and surrounds, rubbish removal, etc) of the coastal foreshore recreation areas at the localities of Eagle Bay, Meelup Beach and Castle Rock are to be undertaken by the City; and all law enforcement (eg bush fire control, litter control, etc) is to be exercised by the City's Ranger and Fire Services.

6F

Busselton Settlement Art Project Steering Committee

To approve the disbursement of funds as approved by the Council in its annual budget for the purpose of raising funds for the project.

Conditions

The budget provided by the Council is to be used for fundraising events and initiatives, including the marketing and promotion of such events and initiatives.

7A

Audit Committee

To meet with the auditor on behalf of the local government in accordance with the requirements of Section 7.12A(2) of the Local Government Act 1995.

 

 

   


 

15.2           PROPOSED AGREEMENT TO PROCEED WITH NEW CONCEPT FOR 'RAILWAY HOUSE' AT BUSSELTON FORESHORE

SUBJECT INDEX:

Busselton Foreshore: Railway House

STRATEGIC OBJECTIVE:

A City where the community has access to quality cultural, recreation, leisure facilities and services.

BUSINESS UNIT:

Governance Services

ACTIVITY UNIT:

Major Projects

REPORTING OFFICER:

Manager, Governance Services - Lynley Rich

Manager, Major Projects - Paul Crewe

AUTHORISING OFFICER:

Chief Executive Officer - Mike Archer

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Preliminary Concept Design Railway House

Attachment b    Opinion of Probable Cost Railway House  

  

 

PRÉCIS

 

It is proposed that the City of Busselton proceeds with the development of formal agreements with the Busselton Jetty Environment and Conservation Association (BJECA) and the Geographe Bay Tourism Association (GBTA) to achieve the construction of ‘Railway House’ at the Busselton Foreshore.  The City has received advice of in-principle support for the proposal to relocate the old Busselton Railway Station, currently located at Rotary Park, to the Busselton Foreshore from both BJECA and GBTA.  The old railway station would form the basis of a newly constructed Railway House and would provide the City, BJECA and GBTA with a co-located key presence on the Busselton Foreshore.

 

 

BACKGROUND

 

The construction of a ‘Railway House’ on the Busselton Foreshore has been proposed since the inception of the Busselton Foreshore Master Plan, with the concept originally being developed through the Busselton Foreshore Working Group after BJECA identified a need for additional space to support the operations of the jetty and the jetty train.  One of the key uses of the proposed facility was to house the jetty train, while also providing a space to celebrate the heritage of the jetty and other historical aspects of the District.  This included a home for the recently restored Ballaarat engine, recognition of the timber industry and its links to the ‘port’ of Busselton Jetty, and the concept of commencing the Rails to Trails project from Railway House.

 

Original concept plans identified a two-storey development approaching a cost of $4-5 million including exhibition areas, museum, interpretive and function spaces.  Since that time, the concept has been refined to ensure its affordability, appropriate use of the space provided and opportunities for multi-use proposals.  More recently, negotiations began to include GBTA requirements in the concept after GBTA identified a desire to remain on the foreshore after a successful trial from a temporary foreshore location.  A number of designs, management models and conditions within existing agreements have been negotiated recently with both BJECA and GBTA and both organisations have now provided in-principle agreement to the proposal that is outlined in this report.

 

STATUTORY ENVIRONMENT

 

The proposed location for the construction of Railway House forms part of Reserve 38558, with the Reserve purpose being ‘Public Recreation’ within the ‘Special Purpose (Busselton Foreshore)’ zone.  This proposal is consistent with the purpose of the Reserve and the City has existing power to lease.  No further statutory processes will therefore be required to secure the land for this development.

RELEVANT PLANS AND POLICIES

 

The Busselton Foreshore Master Plan (BFMP) was developed with provision for Railway House to be located south of the existing Goose, but north of the spine road so as to avoid complications of the railway line crossing the spine road.  This proposal is in keeping with the BFMP.

 

FINANCIAL IMPLICATIONS

 

An opinion of probable cost (OPC) for the relocation of the old Busselton Railway Station and the construction of ancillary buildings, storage areas and a train tunnel has been developed by the City’s Major Projects team responsible for the proposed design.  The total project cost is in the vicinity of $2 million to $2.2 million, dependent on the final design of the areas to be occupied by BJECA.  The costs for which the City would be responsible under the proposed agreement between the City, BJECA and GBTA amount to $1.125 million.  $1 million has already been identified in the City’s draft 2014/15 budget for this purpose as a transfer from the Infrastructure Development Reserve.  It is proposed that $125,000 be further allocated in the 2014/15 budget from the Building Reserve.

 

The OPC is based on a preliminary design that may be further refined to ensure BJECA’s requirements are accommodated.  It is however noted that the agreement that is currently under negotiation would see BJECA paying for those areas of the building to be provided for their purposes.  Therefore any increase or decrease to floor space or other changes in these areas would only impact on the portion payable by BJECA.  The City will include in the proposed agreements that BJECA’s contribution would be the actual cost of the section of the building for BJECA’s use and would be confirmed through the competitive tender and contract award process, subject to the tenders being no more than 10% higher than final project estimate. 

 

The financial model for this project does not require an upfront capital contribution from GBTA.  The GBTA will instead return the building previously utilised as the Visitors’ Centre on Peel Terrace to the ownership of the City at no cost to the City.  While located on City land, the lease agreement for the land requires the payment to GBTA a sum equivalent to the market value of the building upon any determination that the lease not be renewed.  This payment from the City will not be required under the current proposal.  It is considered the Peel Terrace centre will be a valuable addition to the City’s property portfolio and would provide the opportunity for the City to utilise the building as alternative accommodation for City staff during any redevelopment of the City’s administrative facilities.

 

STRATEGIC COMMUNITY OBJECTIVES

 

Enhancing our foreshores and reserves to provide a place where people can come together and engage in a range of social and recreational activity is a key strategy to deliver the Community’s objective of being a City where the community has access to quality cultural, recreation, leisure facilities and services, as outlined in the Strategic Community Plan. 

 

RISK ASSESSMENT

 

Risk

Controls

Consequence

Likelihood

Risk Level

Investing resources into the project without final formal agreement

Interim Memorandum of Understanding capturing the intent of all parties

Minor

Unlikely

Low (after the application of controls)

 


 

CONSULTATION

 

The concept plans have been discussed with both GBTA and BJECA over a period of time.  At this stage, the proposal for the City, BJECA and GBTA to build and manage a Railway House at Busselton Foreshore has been supported in-principle by the Board of GBTA, as advised on 16 June 2014.  The GBTA has advised the City that the foreshore location, together with the heritage of the Old Railway Station and associated interpretive space, will provide a drawcard for visitors and assist the GBTA to continue to provide quality visitor servicing, and grow the contribution tourism makes to the local community.

 

BJECA’s executive committee has agreed in-principle to the proposal put forward by the City, however, the proposal will also need to be considered at a general meeting of the association proposed for early July.  The outcomes of this report will therefore be subject to the final approval of BJECA after the conduct of the next general meeting.

 

However, BJECA’s executive committee advised the City on 13 June, 2014, that the executive committee agreed in-principle and would progress discussion on the proposal, subject to consideration of some additions to the proposed building and other design considerations.  These matters have been further discussed with BJECA but are still subject to finalisation.  This is the reason for the project being identified as between $2 million and $2.2 million as discussed in the report.

 

OFFICER COMMENT

 

The proposal was presented by the City to BJECA and GBTA earlier in June, with the City looking to fast-track the proposal to an MOU stage to enable formal negotiations to continue as soon as possible.  This is presented as a late report to the 25 June 2014 Council meeting to enable this to occur as soon after BJECA’s general meeting as possible, subject to confirmation of BJECA’s in-principle support.

 

The proposal was presented to GBTA in the following terms and the in-principle support was provided without change.

 

1.      For provision of approximately 120m² indoor visitor servicing space/retail in relocated old Railway Station (no capital funding required by GBTA). City receives Peel Terrace visitor centre in exchange. ie upon moving in or sooner (by agreement). Long term lease provided free of charge – 21 yr.

 

2.      City to provide basic fit out of their space, GBTA responsible for soft furnishings etc.

 

3.      That GBTA be responsible for the day to day management of the Interpretive Space and for the bookings.

 

4.      For private use outside normal opening hours or via special arrangement for exhibitions, GBTA be provided access to Interpretive space on an advanced booking arrangement (as per BJECA, Community and City) for functions etc on cost recovery basis.

 

5.      City would be responsible for the curatorial management of the interior of the Interpretive Space and for any City exhibitions.

 

6.      City would meet outgoings of Interpretive space however would seek a part contribution to cleaning of the ablution area (which will be used by GBTA, staff and the public).

 

7.      GBTA responsible for outgoings on “Old Railway Station” such as cleaning, power and water and general building maintenance and City responsible for structural maintenance issues.

 

8.      City would also insure the Building, GBTA would be responsible for insurance of contents and other fittings.

 

The proposal was presented to BJECA and has been agreed to in-principle subject to further layout and design discussions, which will determine the final cost estimate.

 

1.      That the City would be willing to renegotiate Jetty Management Licence to provide greater tenure and more favourable annual licence terms to BJECA, on the basis of a modest fixed percentage increase per annum (say CPI minus 1%) with an agreed share of Jetty Entry fee turnover above an agreed threshold amount that is achieved in any particular 12 month period, ie linked to activity and seasonal factors.

 

2.      That BJECA be given a long term lease over their space in Railway House (free of charge) - 21 yr (to be agreed).

 

3.      That BJECA contribute the capital funding cost of the Railway Tunnel section, administration space, workshop, storage space (as per design of BJECA’s area requirement subject to competitive tendering).

 

4.      That BJECA meet all outgoings of their executive space in Railway House (specifically metred), cleaning, power, water and insurance.

 

5.      For private use outside normal opening hours or via special arrangement for exhibitions, BJECA be provided access to Interpretive space on an advanced booking arrangement (as per GBTA, community and City) for functions etc on cost recovery basis.

 

6.      That the City would enable BJECA to have the Interpretive collection relocated to the Interpretive Space in Railway House (subject to specialist curatorial advice) to enable BJECA to free up space in the Interpretive Centre for either additional merchandise or other activities (to be agreed upon).

 

The City’s space would provide a home for the Ballaarat engine, interpretive display area, public toilets and function space.  It is noted that the OPC does not provide for curatorial services for the interpretive spaces and it is considered that some grant funding could be sought for this (eg National Trust with the Rails to Trails link) and this will need to be further investigated by relevant City staff.

 

It is now proposed that, subject to further approval from BJECA following the general meeting, the City initiates Memorandums of Understanding with both BJECA and GBTA to secure commitment for the project to enable design and construction to proceed while formal leases, licences and required changes to existing agreements are developed.

 

The project management of design and construction of the building will be undertaken internally by the City’s Major Projects team.  Greg Hood, who is a member of the City’s Assets Team, has undertaken the preliminary design work and will continue with the project by secondment to the Major Projects Team as required.   As flagged earlier, the final design and therefore final estimated cost will need to be finalised with BJECA.  However, the current preliminary design and OPC have been attached to this report.    While much of the work will be undertaken internally by City of Busselton officers, it is noted that the requirement for certain professional fees, an example being structural engineering requirements, has been built into the OPC. 

 

In addition to the matters currently covered off in the proposals that have already been put to BJECA and GBTA for consideration, the following matters will need to be addressed in the MOUs and future agreements:

·    Ownership of the shed that currently houses the jetty train to return to the City for relocation and site reparation;

·    Consideration of providing options on the 21 year leases, say three seven year options;

·    Terms of the licence agreement for the Busselton Jetty with BJECA relating to potentially capping any CPI increase applied to BJECA’s contribution; and

·    Capping of the cost of construction to BJECA as being within 10% higher than the final OPC.

 

CONCLUSION

 

The current plan is considered a good balance of affordability of co-location of facilities to add value to the Busselton Foreshore experience.  The opportunity to utilise and highlight the old Busselton Railway Station in the design has been well received.  It is recommended that the intentions of the City, BJECA and GBTA are now encapsulated in Memorandums of Understanding to provide for the advancement of the project.

 

OPTIONS

 

The Council may determine not to proceed with the construction of Railway House.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

It is proposed that Memorandums of Understanding would be completed as soon as possible with all parties to enable the project to proceed with surety.  It is considered that this will take approximately six weeks.

 

OFFICER RECOMMENDATION

 

That the Council:

 

1.    Endorses the City preparing and entering into a Memorandum of Understanding with the Busselton Jetty Environment and Conservation Association (BJECA) outlining an agreement to proceed with the construction of Railway House on the Busselton Foreshore, subject to the outcomes of BJECA’s general meeting in July.

 

2.    Endorses the City preparing and entering into a Memorandum of Understanding with the Geographe Bay Tourism Association  (GBTA) outlining an agreement to proceed with the construction of Railway House on the Busselton Foreshore.

 

3.    Subject to the MOUs above, endorses the drafting of the necessary leases and licences and proposed changes to any existing agreements to facilitate this proposal.

 

4.    Provides for an additional inclusion of a transfer of $125,000 from the Building Reserve to the Railway House project in the 2014/15 draft budget.

 

  


Council                                                                                      85                                                                      25 June 2014

10.             Motions of which Previous Notice has been Given

16.1           LOCATION OF SOUTH WEST INSTITUTE OF TECHNOLOGY CAMPUS 

 

 

Councillor Grant Henley has given notice that at the Council meeting on 25 June 2014, he will move the following motion:

 

 

MOTION

 

That the Council endorses the location of Vasse as the preferred site for the proposed new South West Institute of Technology (SWIT) campus.

 

 

 

REASON

 

The reason for the notice of motion is to support the independent consultant’s recommendation of Vasse as being the best location for a proposed new SWIT campus. The issue of other tertiary institutional interest can be addressed, when and if it becomes evident, by all the stakeholders.  This motion can serve to focus lobbying on government to deliver this infrastructure in as short a timeframe as possible.

 

CEO COMMENT

 

The motion is consistent with the Officer Recommendation from when the matter was previously considered by the Council.

 

 


Council                                                                                      87                                                                      25 June 2014

16.2           REQUEST FOR REPORT ON PROVISIONS RELATING TO RELOCATED DWELLINGS IN PORT GEOGRAPHE

 

 

Councillor Gordon Bleechmore has given notice that at the Council meeting on 25 June 2014, he will move the following motion:

 

 

MOTION

 

That the Council requests the CEO to investigate and report to Council by the end of 2014 on possible legislative changes that could enable the City of Busselton to place controls on relocated dwellings in Port Geographe through the inclusion of provisions in the town planning scheme, or otherwise.

 

 

 

REASONS

 

The City is in receipt of requests from Port Geographe residents to place controls on relocated dwellings.  It has been considered that this may require change to the State Planning legislation to enable this to occur.  This should be thoroughly investigated and appropriately reported upon to enable Council to make an informed decision about the matter of relocated dwellings and to develop an appropriate course of action.

 

CEO COMMENT

 

Not required.

 

    


Council                                                                                      87                                                                      25 June 2014

11.             Confidential Reports  

 

The reports listed below are of a confidential nature, in accordance with section 5.23(2) of the Local Government Act 1995. These reports have been provided to Councillors, the Chief Executive Officer and Directors only.

RECOMMENDATION

 

That the meeting is closed to members of the public to discuss the following items which are confidential for the reasons as shown.

17.1           Finance Committee - 5/06/2014 - VACATING OCCUPIER – UNIT PAYOUT

This report contains information of a confidential nature in accordance with Section 5.23(2(e)(iii) of the Local Government Act 1995, as it contains information relating to a matter that if disclosed, would reveal  information about the business, professional, commercial or financial affairs of a person, where the information is held by, or is about, a person other than the local government

 

17.1           Finance Committee - 5/06/2014 - VACATING OCCUPIER – UNIT PAYOUT

SUBJECT INDEX:

Agreements/ Contracts

STRATEGIC OBJECTIVE:

Infrastructure assets are well maintained and responsibly managed to provide for future generations.

BUSINESS UNIT:

Corporate Services

ACTIVITY UNIT:

Finance and Corporate Services

REPORTING OFFICER:

Property and Corporate Compliance Coordinator - Sharon Woodford-Jones

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Matthew Smith

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Map of Reserve 3702  

This item is confidential in accordance with section 5.23(2) (e)(iii) of the Local Government Act 1995, as it contains information relating to a matter that if disclosed, would reveal  information about the business, professional, commercial or financial affairs of a person, where the information is held by, or is about, a person other than the local government.

 

This item was considered by the Finance Committee at its meeting on 5 June 2014, the recommendations from which have been included in this report. 

 

COMMITTEE RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That the Council:

1.            Authorise a payment from the Municipal Fund Account of approximately $53,000 to the vacating occupant of Unit 33 Winderlup Court.

 

2.            Authorise the CEO to enter into a Residential Tenancy Agreement for a fixed term of 12 months, for Unit 33 Winderlup Court, West Street, Busselton for use by persons aged 55 years and over at the current market rent. 

 

3.            Requests an update report in respect of negotiations with the Department of Lands relating to Reserve 3702 be provided to the Council prior to 31 December 2014.   

 

  

12.             Questions from Members

Nil

19.             Public Question Time

Nil

20.             Next Meeting Date

Wednesday, 9 July 2014

13.             Closure

The meeting closed at 6.25pm.

 

 

 

 

 

 

 

THESE MINUTES CONSISTING OF PAGES 1 TO 89 WERE CONFIRMED AS A TRUE AND CORRECT RECORD ON Wednesday, 9 July 2014.

 

 

DATE:_________________              PRESIDING MEMBER:        _________________________