COB-RGB

 

 

 

 

 

Council Agenda

 

 

 

22 March 2017

 

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 22 March 2017

 

 

 

TO:                  THE MAYOR AND COUNCILLORS

 

 

NOTICE is given that a meeting of the Council will be held in the Meeting Room One, Community Resource Centre, 21 Cammilleri Street, Busselton on Wednesday, 22 March 2017, commencing at 5.30pm.

 

Your attendance is respectfully requested.

 

 

 

Mike Archer

 

CHIEF EXECUTIVE OFFICER

 

10 March 2017


CITY OF BUSSELTON

Agenda FOR THE Council MEETING TO BE HELD ON 22 March 2017

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

1....... Declaration of Opening and Announcement of Visitors. 5

2....... Attendance. 5

3....... Prayer. 5

4....... Public Question Time. 5

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

6....... Application for Leave of Absence. 5

7....... Petitions and Presentations. 5

8....... Disclosure Of Interests. 5

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

Previous Council Meetings. 5

9.1          Minutes of the Council Meeting held 8 March 2017. 5

Committee Meetings. 6

9.2          Minutes of the Capes Region Organisation of Councils (CapeROC) Meeting held 17 February 2017. 6

9.3          Minutes of the Finance Committee Meeting held 2 March 2017. 6

9.4          Minutes of the Audit Committee Meeting held 2 March 2017. 6

10..... Reports of Committee. 7

10.1        Finance Committee - 2/03/2017 - LIST OF PAYMENTS MADE - JANUARY 2017. 7

10.2        Finance Committee - 2/03/2017 - FINANCIAL ACTIVITY STATEMENTS - PERIOD ENDING 31 JANUARY 2017. 28

10.3        Finance Committee - 2/03/2017 - BUDGET AMENDMENT REQUEST. 49

10.4        Audit Committee - 2/03/2017 - COMPLIANCE AUDIT RETURN.. 56

11..... Planning and Development Services Report. 68

11.1        PUBLIC HEALTH ACT 2016 AUTHORISATIONS. 68

12..... Engineering and Works Services Report. 68

13..... Community and Commercial Services Report. 68

13.1        BUSSELTON FORESHORE REDEVELOPMENT: LEASE OF LOT 561 ON DEPOSITED PLAN 409945, CROWN LAND TITLE VOLUME 3167 FOLIO 934 (FAMILY RESTAURANT; MICROBREWERY, AND FUNCTION CENTRE). 68

13.2        CSRFF SMALL GRANTS ROUND APPLICATION SUMMER. 76

14..... Finance and Corporate Services Report. 107

15..... Chief Executive Officer's Report. 107

15.1        COUNCILLORS' INFORMATION BULLETIN.. 107

16..... Motions of which Previous Notice has been Given.. 119

17..... Confidential Reports. 119

18..... Questions from Members. 119

19..... Public Question Time. 119

20..... Next Meeting Date. 119

21..... Closure. 119

 


Council                                                                                      5                                                                     22 March 2017

 

1.               Declaration of Opening and Announcement of Visitors

2.               Attendance 

Apologies

Approved Leave of Absence

 

Nil

3.               Prayer

The Prayer will be delivered by Pastor Nigel Wittwer of Hope Christian Church.

4.               Public Question Time

Response to Previous Questions Taken on Notice 

 

Nil

Public Question Time

5.               Announcements Without Discussion

Announcements by the Presiding Member 

Announcements by other Members at the invitation of the Presiding Member

6.               Application for Leave of Absence

7.               Petitions and Presentations 

8.               Disclosure Of Interests

9.               Confirmation and Receipt Of Minutes 

Previous Council Meetings

9.1             Minutes of the Council Meeting held 8 March 2017

Recommendation

That the Minutes of the Council Meeting held 8 March 2017 be confirmed as a true and correct record.

 


 

Committee Meetings

9.2             Minutes of the Capes Region Organisation of Councils (CapeROC) Meeting held 17 February 2017

RECOMMENDATION

 

1)    That the minutes of the Capes Region Organisation of Councils (CapeROC) Meeting held 17 February 2017 be received.

 

2)    That the Council notes the outcomes from the Capes Region Organisation of Councils (CapeROC) Meeting held 17 February 2017 being:

 

a)    CapeROC gives in principle support for $30,000 to be allocated from next year’s budget to employ a suitably qualified consultant to prepare a Capes Regional Trails Strategy and $15,000 from each Council’s budget.

 

b)    The general discussion items are noted.

 

9.3             Minutes of the Finance Committee Meeting held 2 March 2017

RECOMMENDATION

 

1)    That the minutes of the Finance Committee Meeting held 2 March 2017 be received.

 

2)    That the Council notes the outcomes from the Finance Committee Meeting held 2 March 2017 being:

 

a)    The Finance Committee Information Bulletin - January 2017 item is noted.

 

b)    The List of Payments Made - January 2017 item is presented for Council consideration at item 10.1 of this agenda.

 

c)    The Financial Activity Statements - Period Ending 31 January 2017 item is presented for Council consideration at item 10.2 of this agenda.

 

d)    The Budget Amendment Request item is presented for Council consideration at item 10.3 of this agenda.

 

9.4             Minutes of the Audit Committee Meeting held 2 March 2017

RECOMMENDATION

 

1)    That the minutes of the Audit Committee Meeting held 2 March 2017 be received.

 

2)    That the Council notes the outcomes from the Audit Committee Meeting held 2 March 2017 being:

 

a)    The Compliance Audit Return item is presented for Council consideration at item 10.4 of this agenda.

 

b)    The Conduct of Meeting with Auditor item is noted.

 

10.             Reports of Committee

10.1           Finance Committee - 2/03/2017 - LIST OF PAYMENTS MADE - JANUARY 2017

SUBJECT INDEX:

Financial Operations

STRATEGIC OBJECTIVE:

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

BUSINESS UNIT:

Financial Services

ACTIVITY UNIT:

Finance

REPORTING OFFICER:

Strategic Financial Plan Accountant - Stuart Wells

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Cliff Frewing

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   List of Payments - January 2017  

 

This item was considered by the Finance Committee at its meeting on 2 March 2017, 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 January 2017, 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, 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.

 

Long-term Financial Plan 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 OFFICER RECOMMENDATION

 

That the Council notes payment of voucher numbers M113836  – M113936, EF050224 – EF050645,  T007311 – T007315, and DD002982 – DD003008; together totaling  $5,840,590.71.

 


Council

27

22 March 2017

10.1

Attachment a

List of Payments - January 2017

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Council                                                                                      34                                                                  22 March 2017

10.2           Finance Committee - 2/03/2017 - FINANCIAL ACTIVITY STATEMENTS - PERIOD ENDING 31 JANUARY 2017

SUBJECT INDEX:

Budget Planning and Reporting

STRATEGIC OBJECTIVE:

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

BUSINESS UNIT:

Financial Services

ACTIVITY UNIT:

Financial Services

REPORTING OFFICER:

Strategic Financial Plan Accountant - Stuart Wells

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Cliff Frewing

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Financial Activity Statements - January 2017

Attachment b    Investment Report - January 2017  

 

This item was considered by the Finance Committee at its meeting on 2 March 2017, 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 31 January 2017.

 

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 21 July 2016, the Council adopted (C1607/160) the following material variance reporting threshold for the 2016/17 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 2016/17 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

 

Not applicable.

 

FINANCIAL IMPLICATIONS

 

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

 

Long-term Financial Plan Implications

 

As above.

 

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 control that assists in addressing this risk.   

 

CONSULTATION

 

Not applicable

 

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 full year 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 full year basis, and reconciles with the net current position as per the Statement of Financial Activity.

 


 

§   Capital Acquisition Report

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

·   Land and Buildings

·   Plant and Equipment

·   Furniture and Equipment

·   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 full year basis. 

 

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

 

COMMENTS ON FINANCIAL ACTIVITY TO 31 JANUARY 2017

 

Operating Activity

 

§   Operating Revenue

 

As at 31 January 2017, there is a variance of -1.51% (-$970K) in total operating revenue, with the following categories exceeding the 10% material variance threshold:  

 

Description

Variance

%

Variance

$000’s

Other Revenue

+31%

+$62

Interest Earnings

+34%

+$561

Non-Operating Grants Subsidies and Contributions

-27%

-$1,697

Profit on Asset Disposals

+72%

+$8

 

Other Revenue (+$62K)

·    Milne Street Pavillion is +$29k ahead of budget.  This is actually a capital grant that will be journaled across in February to Non-Operating Grants, Subsidies and Contributions against where the budget sits.  This is timing in nature only.

·    Parking Control is ahead of year to date budget by +$16k.  This variance has increased by 1k over December, continues to track ahead of budget and is indicative of a permanent difference.

·    Animal Control is unfavourable against budget by -$10k.  This variance has been fluctuating on a month to month basis and is likely timing in nature.

·    Busselton Transfer Station and Dunsborough Waste Facility are favourable against budget by +$14k.  This is due to sales of scrap and recyclable materials currently trending ahead of budget.  Any variance is transferred to waste reserve at the end of the year with no impact to overall municipal surplus/(deficit) position.

·    Sale of Artworks +$2k.  These amounts result in a liability and expense being paid at a later date to the artist concerned.  Therefore timing difference only

·    Receipts of unbudgeted long service leave amounting to +$16k.  The amount will be offset by a corresponding expenditure amount at the time the leave is taken, therefore no impact to the overall surplus/(deficit) position.

·    Busselton and Dunsborough Cemeteries currently +$3k ahead of budget due to sale of memorialisation stock.  This is expected to be a timing difference only.

·    Public Relations sale of number plates are +$2k ahead of budget.  Based on the current trend it is likely this will exceed budget for the full year.

·    NCC Standpipe is -$7k behind budget due to sale of water because of a timing difference.  The budget assumed monthly receipts however they will be received bi-annually.

·    Other Law, Order and Public Safety, local government act fines and costs is trending below budget by -$7k.  Likely to not meet full year budget targets based on actuals to date.

·    Fire Prevention Bush Fire Act Fines and Costs is currently trending -$6k below budget.  Based on this current trend it’s unlikely the full year $45k budget target will be met.

 

Interest Earnings (+$561K)

·    Interest on municipal funds +$28k.

·    Interest on reserve funds +$101k.

·    Interest on restricted funds +$377k.

·    Late payment interest on rates +$55k.

 

Non-Operating Grants, Subsidies and Contributions (-$1,697K)

·    There are a number of items that make up the current year to date variance.  All variances are timing related except:

Foreshore East Youth Precinct (Skate Park & Adventure Playground).  An accrual was raised for a Lotterywest grant in the 2015/16 financial year equal to $613k.  In the 2016/17 financial year only $480k has been received.  This leaves a current budget shortfall of $133k.  The shortfall is subject to ongoing discussions between the City of Busselton and Lotterywest.

 

Profit on Asset Disposals (+$8K)

·    Sales of the CEO’s Toyota Prado +$12k.   It was budgeted to be sold at its book value but +$12k more than budget was received.

·    Fibreglass Water Leeder Tank +4k.  This was an insurance receipt received equal to the replacement value of the tank broken, resulting in a profit on sale of +$4k.

·    Offset against this is the sale of a number of items which are yet to occur or items that were budgeted to be sold at a profit and ended up being sold at a loss amounting to -$8k. 

 

§   Operating Expenditure

 

As at 31 January 2017, there is a variance of +4% (+$1,475K) in total operating expenditure, with the following categories exceeding the 10% material variance threshold:  

 

Description

Variance

%

Variance

$000’s

Materials and Contracts

+16%

+$1,382

Utilities

+23%

+$314

Other Expenditure

+20%

+$371

Allocations

-13%

-$146

Loss on Asset Disposals

-1,672%

-$101

 

Materials and Contracts (+$1,382K)

·    By directorate, materials and contracts is showing the following variances at 31 January 2017;

Engineering and Works Services +$677k

Community and Commercial Services +$422k

Finance and Corporate Services +$83K    

Planning and Development Services +$24k

Executive Services +$71K

·    From a natural account perspective the variances are predominantly attributable to contractors +$485k, Consultants +$565k and Fuels, Oils and Grease +$49k.  Of those variances it is only Fuel, Oils and Grease that is likely to result in a permanent difference for the full year at this stage if fuel prices remain stable at current levels.  This variance has however continued to reduce over January.

 

Utilities (+$314K)

·    The predominant variance for utilities relates to water +$153k and electricity +$146k.  This variance is a timing variance related to the irregular way in which water and electricity invoices are received.

 

Allocations (-$146K)

·    This activity incorporates numerous internal accounting allocations. The first component is Activity Based Costing (ABC) allocations where allocations are based on actual costs.  The second component is the overhead allocations whereby the monthly charges are based on budget.  The  -$146k variance is timing variance that reflects an under allocation at 31 January 2017.  It is expected this will correct by end of the financial year.

 

Loss on Asset Disposals (-$101K)

·    The loss on asset disposals relates to numerous items of plant and equipment sold in the first seven months of the financial year.  The loss represents the difference between the book value of the assets and the amounts received in cash for those assets sold.  The variance of -$101k is mostly considered permanent as it relates to items that were either budgeted to be sold at a profit or smaller items that were not budgeted to be sold.

 

Capital Activity

 

§   Capital Revenue

 

As at 31 January 2017, there is a variance of -36% (-$15,381K) in total capital revenue, with the following categories exceeding the 10% material variance threshold:  

 

Description

Variance

%

Variance

$000’s

Transfer from Reserves

-20%

-$3,650

Transfer from Restricted Assets

-55%

-$11,564

Proceeds from Sale of Assets

-53%

-$161

Self-Supporting Loans

-13%

-$6k

 

Transfer from Reserves (-$3,650K)

·    Timing difference relating to use of the Civic and Administration Centre Construction Reserve       (-$5,400K).  Offset by an increase in use of Infrastructure Asset Renewal Reserve (+$2,000k) for the same period.  These are both timing in nature only.

·    Community Development contribution reserve (-$250K).  Budget included $250k spent on Milne Street Pavilion in November which has not yet occurred.  This is timing in nature only and will correct by June 2017.

 

Transfer from Restricted Assets (-$11,564K)

·    Timing difference relating to use of Airport and Foreshore grants -$18,000k and -$3,000k relating to the foreshore works.  No impact to net current position.

·    Movement of Community and Rec Facilities +$7,323k, Vasse Diversion Drain +$383k, Drainage held in Restricted Assets +$211k, Aged Housing +$846k from restricted assets into reserves.  These movements were budgeted to occur in June 2017 but have occurred in October and are timing in nature only.  No impact to net current position.

·    Bonds and Deposits (+$671k) not budgeted.  Timing in nature only as held on behalf of other entities and individuals.

 

Proceeds from Sale of Assets (-$161K)

·    Proceeds from sale of assets, includes timing differences of -$206k and permanent differences of +$45k.  Of the permanent differences, +$12k relates to additional funds received for sale of Toyota Prado, +$12k insurance refund for fibreglass water tank, +$9k for Kawasaki Mule and  the remainder being a number of smaller plant items or differences in budgeted proceeds and actuals proceeds received.

 

§   Capital Expenditure

 

As at 31 January 2017, there is a variance of 39% (+$31,311K) in total capital expenditure, with the following categories exceeding the 10% material variance threshold: 

 

Description

Variance

%

Variance

$000’s

Land and Buildings

+40%

+$7,028

Plant and Equipment

+48%

+$662

Furniture and Equipment

+79%

+$1,017

Infrastructure

+72%

+$27,152

Transfers to Restricted Assets

-516%

-$3,737

 

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

 

All capital expenditure variances are considered to be a timing adjustment at this time, with no impact expected against the net current position.

 

Transfers to Restricted Assets (-$3,737K)

The transfers to restricted assets budget comprises an estimation of funds that could potentially be received during the financial year, primarily from developer contributions. Due to the nature of the category, the annual budget allocation is spread evenly throughout the financial year. The performance in this activity does not have any direct impact on the surplus/deficit position, as whilst recognised as operating revenue upon receipt, these funds are subsequently quarantined to restricted assets, essentially offsetting the initial transaction. Furthermore, the transfers to restricted assets category also include the payment of bonds and deposits, where no specific budget allocation is made for these funds.  

 

The unfavourable financial year to date variance of -$3,737k is primarily attributable to the receipt of Cash in Lieu – Parking -$80k, Bonds and Deposit -$173k receipt of interest in excess of budget attributable to the airport grant -$400k and Unspent Loan funds -$3,028k.

 

Investment Report

 

Pursuant to the Council’s Investment Policy, a report is to be provided to the Council on a monthly basis, detailing the investment portfolio in terms of performance and counterparty percentage exposure of total portfolio. The report is also to provide details of investment income earned against budget, whilst confirming compliance of the portfolio with legislative and policy limits.

 

As at 31 January 2017, the value of the City’s invested funds totalled $119.3M, decreasing from $121.4M as at 1st January. The decrease is due to funds being used for operational purposes, including the Admin Building redevelopment and other major projects. 

During the month of January $6.0M in term deposit funds matured with the deposits closed to meet operational cash requirements.

 

The balance of the 11am account (an intermediary account which offers immediate access to the funds compared to the term deposits and a higher rate of return compared to the cheque account) increased by $3.0M with the funds being held to meet future operational cash requirements.

 

The RBA left official rates on hold during January and February with future rate movements are unclear at this stage.

 

Please refer to Attachment B for further information.

 

CONCLUSION

 

As at 31 January 2017, the City’s financial performance is considered satisfactory.  Whilst current variances exist in some operational areas, these are primarily due to timing differences, and if not timing are not material in nature or are transactions that have no direct impact on the Net Current Position. Trends identified that could lead to permanent differences will continue to be monitored in future periods to ensure corrective action is taken in a timely manner if required.

 

Whilst acknowledging capital is presently tracking below year to date budget estimates, this is also seen to be attributable to timing differences at this time.  There continues to be no indication at this time of any material cost overruns on any capital items in this year’s budget.

 

OPTIONS

 

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

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Reports are received as at the date of the relevant Council meeting

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

 

That the Council receives the statutory financial activity statement reports for the period ending 31 January 2017, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations.

 


Council

46

22 March 2017

10.2

Attachment a

Financial Activity Statements - January 2017

 


 


 


 


 


 


 


 


 


 


 


 



Council

48

22 March 2017

10.2

Attachment b

Investment Report - January 2017

 


Council                                                                                      54                                                                  22 March 2017

10.3           Finance Committee - 2/03/2017 - BUDGET AMENDMENT REQUEST

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 Corporate Services

ACTIVITY UNIT:

Corporate and Financial Services

REPORTING OFFICER:

Manager Financial Services - Kim Dolzadelli

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Cliff Frewing

VOTING REQUIREMENT:

Absolute Majority

ATTACHMENTS:

Attachment a   Schedule of Requested Budget Amendments March 2017  

 

This item was considered by the Finance Committee at its meeting on 2 March 2017, the recommendations from which have been included in this report. 

 

PRÉCIS

 

This report seeks recommendation of the Finance Committee to Council for the approval of budget amendments as detailed in the attached “Appendix A Schedule of Requested Budget Amendments”. Adoption of the Officers recommendation will result in an Amended Budgeted Surplus Position of $0.

 

BACKGROUND

 

Council adopted its 2016/2017 Municipal Budget on Thursday 21 July 2016 with a balanced Budget position.  On 14 December 2016 Council considered amendments to the Adopted Budget and by Absolute Majority resolved to accept numerous amendments which resulted in an Adopted Surplus position of $70,982.

 

Council is now being asked to consider Budget Amendments for the following Key Areas/Projects:

 

1.   “Busselton Foreshore Site 3 Carpark” project

 

Background

 

Council received a briefing on 8 February 2017 with respect to the “Busselton Foreshore Site 3 Carpark” project with a proposal to bring forward through central works items due to the pending jetty precinct works removing the carpark from this area and the need to replace this carpark space at foreshore.  Council was provided two options for consideration, the first being a traditional kerbed and asphalted carpark and the second being an unreinforced grassed surface.

  

Planned Expenditure Items

 

Preliminary costings have been undertaken on the various options available and the amount of $350,000 is sought to undertake the “Busselton Foreshore Site 3 Carpark” project.  It is proposed that this expenditure be funded by:

 

Use of current Surplus Funds                                                                      $70,982

Transfer from the “Community Facilities – Busselton Reserve”    $180,000

Transfer from the “Infrastructure Development Reserve”              $99,018

Total      $350,000

 

This amount will allow for all options to be finalised with detailed designs, should the full amount not be required than a reduction of the Transfer from the “Infrastructure Development Reserve” would occur. Please note costings of the 8 February 2017 briefing did not include funds for carpark lighting or landscaping surrounding the carpark.

 

Proposed Outcome

 

Provision of additional car parking to facilitate completion of the Busselton foreshore project, by bringing forward this component of works which has previously been identified for construction in the 2017/18 Budget LTFP.

 

2.   “Closed Circuit Television” project

 

Background

 

With the completion of the Skate Park at the Busselton Foreshore Youth area, it has been noted there is an increase in antisocial behavior. As part of the management strategy officers have investigated the use of a Closed Circuit Television (CCTV/Web Cams) implementation to assist as a deterrent and capturing visual record of behaviors/crimes. On Wednesday 22 February Council received a briefing on the potential implementation of a CCTV/Web Cams across the East side of the Foreshore, detailing the type of systems and cost of each section.

 

During the briefing Councilors indicated they are supportive of a staged approach with the first stage including the Skate Park and Busselton Police Station components, totaling $62,900.

  

Planned Expenditure Items

 

To enable the first phase of CCTV deployment capable of integrated expansion into the future where the City sees fit, officers have determined the following items will need to be implemented:

 

Item

Description

Account

Amount

Skate Park CCTV

Purchase, installation and configuration of Skate Park CCTV/Web Cams system

220-10250-7743-0000

$53,000

BSN Police Station

Purchase, installation and configuration of Busselton Police Station CCTV monitoring system.

220-10250-7743-0000

$9,900

 

It is proposed that this expenditure be funded by:

 

Transfer from the “Corporate IT System Program Reserve”           $62,900

Total      $62,900

 

Proposed Outcome

 

The implementation of a CCTV/Web Cams system at the Skate Park and installing a monitoring station at the Busselton Police Station can assist with the management of opportunistic crimes and general antisocial behavior.

 

3.   “Contribution Busselton Rotary Club heritage trail” project

 

Background

 

In February 2017, The Rotary Club presented to Council a proposal for heritage trail project, commencing at the Busselton foreshore and encompassing twenty (20) significant heritage listed places / buildings of significance in Busselton.

 

The Rotary Club would like to commence this project in April 2017, which includes the collection and collation of historical stories and photographs and the design, development and installation of interpretative signage and large plaques.

Due to its historical significance, the City would like to contribute towards the project and as such it is proposed that a budget amendment be created within the 2016/17 budget to meet the tight timeframes of project development.

 

This item simply is requesting that $7,000 be reallocated from “City's Youth Services - fit out for the Busselton Youth and Communities Activities building” to “Contribution Busselton Rotary Club heritage trail” project; this will have no impact on the Municipal Budget.

  

Planned Expenditure Items

 

Cash contribution to the Busselton Rotary Club to undertake the “heritage trail” project as described above.

 

It is proposed that this expenditure be funded by:

 

A $7,000 funding allocation has been identified in the 2016/17 budget that will not be spent this financial year.  These monies were originally allocated as part of the City's 2016/17 Community bids scheme to the City's Youth Services as a means to provide some fit out for the Busselton Youth and Communities Activities building. As the building will not be completed until late in 2017, these funds can be reallocated as part of the 2017/18 budget development process.

 

Proposed Outcome

 

The Heritage Trail project consists of the collection and collation of historical stories and photographs and the design, development and installation of interpretative signage and large plaques.

 

4.   “Time to Play” project

 

Background

 

The purpose of the grant is for the City of Busselton to facilitate the ‘Time to Play” is an Early Years program specifically targeted to the 5 key development domains of the Australian Early Development Census (AEDC). Funding of $15,000 has been secured through the Department of Local Government and Communities for Program resources/materials, equipment hire, advertising and marketing and facilitation

  

Planned Expenditure Items

 

Time to Play program will be implemented via a series of events specifically targeting the Early Years sector (0-6yrs olds) in the Capes region. The program incorporates events and new initiatives to support parents and care givers of children aged 0-6yrs whilst bringing together service providers, agencies and support groups.

 

Proposed Outcome

 

The objective of the program is to collaborate in the development and implementation of a community plan that strategically provides a vision and direction for early years’ service delivery within our community for 12 months and into the future. It is hoped that the initiative and networks established will remain beyond the tenure of the project, supported by the Capes Early Years Network and local governments.

 

STATUTORY ENVIRONMENT

 

Section 6.8 of the Local Government Act refers to expenditure from the municipal fund that is not included in the annual budget. In the context of this report, where no budget allocation exists, expenditure is not to be incurred until such time as it is authorised in advance, by an absolute majority decision of the Council.

 

RELEVANT PLANS AND POLICIES

 

There are multiple Plans and Policies that support the proposed Budget Amendments.

 

FINANCIAL IMPLICATIONS

 

Budget amendments being sought will result in a decrease of Budget Surplus from $70,982 to $0.

 

Long-term Financial Plan Implications

 

The Foreshore Car Park project that is the subject of the requested Budget Amendment is currently included in Councils Draft Long Term Financial Plan which was the subject of a workshop with Council held 14 February 2017.  Acceptance to bring forward this project will result in amendment to this plan.

 

STRATEGIC COMMUNITY OBJECTIVES

 

Well Planned, Vibrant and Active Places

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

 

Open and Collaborative Leadership

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

 

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

 

RISK ASSESSMENT

 

There is a risk to the City, as there is with all projects undertaken, that the final cost could exceed budget. If this looks to be the case Council will be notified so a suitable offset / project scope back can be identified.

 

CONSULTATION

 

Council received a briefing on 8 February 2017 with respect to the” Busselton Foreshore Site 3 Carpark” project.  Council was provided two options for consideration, the first being a traditional kerbed and asphalted carpark and the second being an unreinforced grassed surface.

 

The following guidance was given to Officers with respect to this project:

 

The site 3 carpark to be predominately constructed in a traditional method, being kerbed and asphalted with the southern section to be trialled as a grassed carpark subject to cost benefits being determined. Design to be finalised and signed off by the CEO.

 

On Wednesday 22 February Council received a briefing on the potential implementation of a CCTV across the East side of the Foreshore, detailing the type of systems and cost of each section.

 

During the briefing Councilors indicated they are supportive of a staged approach with the first stage including the Skate Park and Busselton Police Station components, totaling $62,900.

 

OFFICER COMMENT

 

The Officer commends these requested Budget Amendments to the Finance Committee for consideration and recommendation to Council.

 

CONCLUSION

 

Council’s approval is sought to amend the budget as per the details contained in this report. Upon approval the proposed works will be planned, organised and completed, where works are unable to be completed in the current financial year appropriate carryovers will be included in the Draft 2017/2018 Municipal Budget.

 

OPTIONS

 

The Council could decide not to go ahead with any or all of the proposed budget amendment requests.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Should the Officer Recommendation be endorsed, the associated budget amendment will be processed within a month of being approved.

 

OFFICER RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That the Finance Committee recommends to Council endorsement of the Appendix A Schedule of Requested Budget Amendments, resulting in an Amended Budgeted Surplus Position of $0.

 

Note:                 Councillor Bleechmore proposed an Alternative Recommendation for Committee consideration that would fund the $99,018 from the “City Car Parking and Access Reserve” as opposed to the “Infrastructure Development Reserve” as recommended by the Officer.

 

 

COMMITTEE RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That the Finance Committee recommends to Council endorsement of the Schedule of Requested Budget Amendments, resulting in an Amended Budgeted Surplus Position of $0.

 

 

 

 



Council

55

22 March 2017

10.3

Attachment a

Schedule of Requested Budget Amendments March 2017

 


Council                                                                                      58                                                                  22 March 2017

10.4           Audit Committee - 2/03/2017 - COMPLIANCE AUDIT RETURN

SUBJECT INDEX:

Reporting and Compliance

STRATEGIC OBJECTIVE:

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

BUSINESS UNIT:

Finance and Corporate Services

ACTIVITY UNIT:

Governance Services

REPORTING OFFICER:

Manager Financial Services - Kim Dolzadelli

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Cliff Frewing

VOTING REQUIREMENT:

Absolute Majority

ATTACHMENTS:

Attachment a   Compliance Audit Return 2016  

 

This item was considered by the Audit Committee at its meeting on 2 March 2017, the recommendations from which have been included in this report. 

 

PRÉCIS

 

The Compliance Audit Return (CAR) relating to the activities of the City of Busselton during 2016 has been completed. The return is a statutory obligation and covers a range of requirements under the Local Government Act 1995 and various Regulations.

 

The completed Compliance Audit Return is attached to this report for the consideration of the Council. The return is recommended for adoption, after which it will be forwarded to the Department of Local Government and Communities as required by the 31 March 2017.

 

BACKGROUND

 

The Department of Local Government and Communities (DLGC) has made available the 2016 Compliance Audit Return (CAR) for completion.

 

The Local Government Act 1995 Section 7.13 requires a Local Government to complete the Compliance Audit Return in the form specified by the DLGC and return by 31 March.

 

STATUTORY ENVIRONMENT

 

Local Government Act 1995

Local Government (Audit) Regulations 1996 Regulations 13, 14 and 15.

 

14.          Compliance audits by local governments

 

(1)          A local government is to carry out a compliance audit for the period 1 January to 31 December in each year.

 

(2)          After carrying out a compliance audit the local government is to prepare a compliance audit return in a form approved by the Minister.

 

(3A)       The local government’s audit committee is to review the compliance audit return and is to report to the council the results of that review.

 

(3)          After the audit committee has reported to the council under sub regulation (3A), the compliance audit return is to be —

 

(a)          presented to the council at a meeting of the council; and

 

(b)          adopted by the council; and

 

            (c)        recorded in the minutes of the meeting at which it is adopted.

 

15.          Compliance audit return, certified copy of etc. to be given to Executive Director

               

(1)          After the compliance audit return has been presented to the council in with regulation 14(3) a certified copy of the return together with —

 

(a)  a copy of the relevant section of the minutes referred to in regulation 14(3)(c); and

 

(bany additional information explaining or qualifying the compliance audit, is to be submitted to the Executive Director by 31 March next following the period to which the return relates.

 

(2)          In this regulation — certified in relation to a compliance audit return means signed by —

 

(a)          the mayor or president; and

 

                (b)          the CEO.

               

RELEVANT PLANS AND POLICIES

 

N/A

 

FINANCIAL IMPLICATIONS

 

Nil

 

Long-term Financial Plan Implications

 

Nil

 

STRATEGIC COMMUNITY OBJECTIVES

 

The compliance assessment is one of the mechanisms that enables the organisation to ensure that it has governance systems that deliver responsible, ethical and accountable decision-making.

 

RISK ASSESSMENT

 

The whole process of the compliance assessment is about identifying risks to the organisation where non-compliant activities have potentially occurred.

 

CONSULTATION

 

The questions listed in the compliance return provided by the Department of Local Government and Communities have been responded to by designated council staff responsible for the actions required to comply with the appropriate legislation.

 


 

OFFICER COMMENT

 

The attached Compliance Audit Return demonstrates that the organisation has a good understanding of statutory requirements and has applied the correct interpretation to these requirements. The return covered the organisation’s processes and records relating to:

 

Area of Compliance

# Questions

Commercial Enterprises by Local Governments

5

Delegation of Power / Duty

13

Disclosure of Interest

16

Disposal of Property

2

Elections

1

Finance

14

Local Government Employees

5

Official Conduct

6

Tenders for Providing Goods and Services

25

Total

87

 

The Authorising Officer notes 100% compliance with respect to the Compliance Audit Return 2016 which is similar to previous years where compliance returns have had a high degree of compliance.

 

CONCLUSION

 

It is recommended that the Council adopt the return for submission to the Department of Local Government and Communities.

 

OPTIONS

 

The option that would be available to the Council in order to comply with the requirement to lodge the return with the Department of Local Government and Communities by the end of March would be to query any of the responses provided and recommend a different response to the Department prior to adopting the return for submission.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

The certified return must be lodged with the Department of Local Government and Communities by 31 March 2017.

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That the Audit Committee, having reviewed the 2016 Compliance Audit Return, noting 100% compliance, recommends to Council that it adopts the Compliance Audit Return 2016 and authorises the Mayor and Chief Executive Officer to sign the joint certificate.

 


Council

67

22 March 2017

10.4

Attachment a

Compliance Audit Return 2016

 


 


 


 


 


 


 


 


 

 


Council                                                                                      75                                                                  22 March 2017

11.             Planning and Development Services Report

11.1           PUBLIC HEALTH ACT 2016 AUTHORISATIONS

SUBJECT INDEX:

Authorised Delegation of Power/Authority

STRATEGIC OBJECTIVE:

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

BUSINESS UNIT:

Environmental Services

ACTIVITY UNIT:

Environmental Health

REPORTING OFFICER:

Environmental Health Coordinator - Dimity Hargrave

AUTHORISING OFFICER:

Director, Planning and Development Services - Paul Needham

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Nil

This report will be published on Monday, 13 March 2017.

12.             Engineering and Works Services Report

Nil

13.             Community and Commercial Services Report

13.1           BUSSELTON FORESHORE REDEVELOPMENT: LEASE OF LOT 561 ON DEPOSITED PLAN 409945, CROWN LAND TITLE VOLUME 3167 FOLIO 934 (FAMILY RESTAURANT; MICROBREWERY, AND FUNCTION CENTRE)

SUBJECT INDEX:

Busselton Foreshore Redevelopment

STRATEGIC OBJECTIVE:

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

BUSINESS UNIT:

Commercial Services

ACTIVITY UNIT:

Economic and Business Development

REPORTING OFFICER:

Economic and Business Development Coordinator - Jon Berry

AUTHORISING OFFICER:

Director, Community and Commercial Services - Naomi Searle

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Nil

  

PRÉCIS

 

This report recommends Council delegates authority to the CEO to finalise terms and conditions and execute a sub-lease between the City of Busselton and Geographe Bay Brewing Company Pty Ltd, for Lot 561 on Deposited Plan 409945 (Crown Land Title Volume 3167 Folio 934). The purpose of the proposed sub-lease is to facilitate a privately funded commercial hospitality development on Crown land, in accordance with the Busselton Foreshore Master Plan and Development Guide Plan adopted by Council (C1602/031) on 24 February 2016.

 

BACKGROUND

 

Following a publicly advertised Expressions of Interest (EoI) process seeking interest in ground leases of proposed commercial sites on the Busselton foreshore, Officers have progressed negotiations with Council-nominated ‘preferred proponents’ Credaro Holdings Pty Ltd (ACN 154 831 302) to develop a family restaurant/microbrewery/function centre and cellar door/tourist orientated retail service. 

 

Credaro Holdings Pty Ltd has also established a separate legal entity (Geographe Bay Brewing Company Pty Ltd: ABN 69 169 450 088) to enter contracts with the City of Busselton and to manage the proposed enterprise.

Since early 2015, Officers have worked with the proponents on a draft Development Agreement, which has had several design iterations that have been modified contiguously with amendments to the Busselton Foreshore Master Plan adopted on 24 February 2016. On 10 August 2016, Council considered proposed commercial arrangements to facilitate the development along with a revised architectural design concept and resolved (C1608/207) the following:

 

1)    Extends Credaro Holdings Pty Ltd (ACN 154 831 302), as ‘preferred proponent’ up to 10 August 2017, to progress commercial development of the site notated ‘Family Restaurant’ in Attachment A to the report;

 

2)    Endorses the draft architectural design concept (as shown in Attachment B to the report) as the guide for further design development of the proposed family restaurant/microbrewery/function centre;

 

3)    Delegates authority for the CEO to enter into a Development Agreement with Geographe Bay Brewing Company Pty Ltd (ABN: 69 169 450 088) on the terms and conditions outlined in the report;

 

4)    Authorises the CEO to advertise an intended disposition of property transaction, being a 1,881m2 portion of Reserve 38588 (proposed Lot 561), by leasehold in accordance with Section 3.58 (and, if applicable, Section 3.59) of the Local Government Act 1995 and presents a further report to Council following the closure for public submissions;

 

5)    Delegates to the CEO the power to negotiate and authorises the CEO to enter into a new head lease with the Minister for Lands in relation to a portion of Reserve 38558 (proposed Lot 561 approximately 1,881m2) to accommodate the proposed restaurant/microbrewery/function centre/cellar door development, on the terms and conditions outlined in this report.

 

This report documents the negotiations between the CEO and the proponents and seeks a Council resolution to dispose of Crown land property by means of a 50 year lease in accordance with statutory requirements of s3.58 of the Local Government Act 1995.

 

STATUTORY ENVIRONMENT

 

Local Government Act 1995

·    In accordance with s9.49B of the Local Government Act 1995, ‘Contract Formalities’, the Council is required to give authority to make, vary or discharge a contract, effectively binding the local government and other parties to the contract. This report identifies the proposed parties to a future contract and recommends the CEO be authorised to negotiate and enter a Development Agreement and Sub-Lease with Geographe Bay Brewing Company (ABN: 69 169 450 088).

 

·    Subsection 3 of s3.58 of the Local Government Act 1995, states that before agreeing to dispose of property, the local government is required to:

 

(a) give local public notice of the proposed disposition by:

­  describing the property concerned;

­  giving details of the proposed disposition (including names of the parties concerned; the consideration to be received by the local government and the market value of the disposition); and,

­  inviting submissions to be made to the local government before a date to be specified in the notice, being a date not less than 2 weeks after the notice is first given

 

(b) consider any submissions made to it before the date specified in the notice and, if its decision is made by the council or a committee, the decision and the reasons for it are recorded in the minutes of the meeting at which the decision was made.

 

The following proposal was advertised on 18 January 2017 in a local newspaper circulating throughout the district inviting submissions to be made, of which none where received:

 

1.            Description of Property

 

(a)  Property: A 1,842m2 portion of Lot 561 (a 1,881m2 parcel of land on Deposited Plan 409945 (currently in Order for Dealings with Landgate) and located on Foreshore Parade, Busselton Western Australia 6280.

 

(b)  Permitted Use: Family restaurant; Microbrewery; Function centre and Cellar door/regional merchandise outlet.

 

(c)   Background: The proposed sub-lease is consistent with the land uses identified in the Busselton Foreshore Master Plan adopted by Council on 24 February 2016 and the Development Guide Plan approved by the Western Australian Planning Commission on 14 April 2016.

 

2.            Details of Disposition

 

(a)  Names of Parties: Sub-Lessor (City of Busselton). Sub-Lessee (Geographe Bay Brewing Company Pty Ltd)

 

(b)  Consideration: The proposed rent to be paid by the Sub-Lessee:

Year 1                                            $1 (one dollar) + GST

Year 2                                            $41,310 + GST

Year 3                                            $63,204 + GST

Year 4                                            $85,957 + GST

Year 5 (and onwards)             Previous year’s rent adjusted by CPI with market rent reviews to be undertaken on the 6th anniversary of the Sublease Commencement Date and every five years thereafter.

 

(c)   Lease Term: 50 years (an initial period of 25 years with an option to renew for a further 25 years)

 

(d)  Market Rent Value: $81,000 per annum (exclusive of GST and outgoings) as determined by a valuation dated 30 November 2016.

 

City of Busselton Town Planning Scheme

An application for development approval has been lodged by the proponent and has been assessed by the City’s planning department. A conditional Development Approval has been granted to the proponent under delegated authority to the Chief Executive Officer.

 

Land Administration Act 1997

The location of the proposed restaurant/microbrewery/function centre and cellar door is Lot 561 on Deposited Plan 409945, Crown Land Title Volume 3167 Folio 934 requiring compliance with the Land Administration Act 1997, including a Head Lease and approval of sub-lease terms and conditions by the Minister for Lands. The Minister for Lands has offered the City of Busselton an Option to Head Lease the Crown land for a term of up to 50 years with powers to sub-lease. The Option is valid for a 2-year period and is proposed to be exercised at the time of execution of the sub-lease once all conditions precedent are met (including a building permit and liquor licence), so that the lease terms (50 years) commence contiguously.

 

Liquor Control Act 1988.

A liquor licensing application will need to be approved by the Department of Racing, Gaming and Liquor in accordance with Liquor Control Act 1988. The proponent is well advanced in seeking a licence likely to be submitted in early March and its approval is a condition precedent before the proposed sub-lease can commence.

 

RELEVANT PLANS AND POLICIES

 

Busselton Foreshore Master Plan (BFMP)

The BFMP is a strategic document that provides detailed guidance for the planning and development of the Busselton Foreshore extending between King Street and Ford Road. The proposal for a restaurant/microbrewery/cellar door and function centre is consistent with the land uses identified in the BFMP. Council adopted a revised BFMP at its 24 February 2016 meeting (C1602/031).

 

Development Guide Plan (DGP)

The DGP incorporates statutory controls relating to land use, building heights and floor areas that reflect the BFMP. The DGP is not proposed to incorporate controls relating to more detailed design elements, relying on the BFMP and subsequent documents providing guidance on these matters. The DGP states the following for the subject site:

 

·    Development Location:                                 Tavern/Restaurant/Shop

·    Storeys:                                                               Two

·    Max. height from natural ground level:   10.2m

·    Max. building Ground Floor area:              1700m2 (the proposed building area is 1,235m2 including public toilets integrated into the structure but excluded from the leased area)

 

The City’s planning department has assessed an Application for Development Approval (DA16/0970) and issued a decision for conditional approval to the proponent.

 

Leases of City Land and Buildings (Policy 248)

The purpose of this policy is to provide a framework and methodology to facilitate responsible and effective utilisation of City owned and controlled land and buildings in a consistent manner that achieves maximum community benefit. The policy states that when assessing a report to lease public land for commercial use, Council should give regard to the following factors including, but not limited to:

 

·    Attracting investment and enhancement of an amenity (e.g. Busselton and Dunsborough foreshores);

·    Creation of employment;

·    Promotion of tourism;

·    Economic return; and

·    Impacts on social, economic and environmental outcomes

 

The policy also states that the term and rent (and other payments) will be negotiated on a case by case basis for commercial leases.

 

FINANCIAL IMPLICATIONS

 

Should Council resolve to enter into the Option to Lease Crown land with the Minister for Lands, there will be an option fee of $500 payable by the City to the Department of Lands. There will also be annual fee of $1,000pa to the Department of Lands, which will be budgeted in the Finance and Corporate Services (Property management) budget from 2017/18 onward.

 

Should Council resolve to enter into a sub-lease with Geographe Bay Brewing Company, as per the terms of a Development Agreement to sub-lease, annual revenue of ~$81,000 plus CPI will be achieved per annum plus market rent review adjustments (in full by year four due to a stepped up approach to rent). This is calculated on a ground lease area of ~1,840m2 (excludes 40.52m2 of public toilets excised from the Head lease area of 1,881m2) multiplied by an independent valuation amount of $44 per sqm which was provided to the City on 30 November 2016. 

 

Lease revenues will be directed to the foreshore preservation/maintenance, resulting in a reduced reliance on municipal revenue to fund the Council’s commitment to the foreshore maintenance.           

Officers have also negotiated a City contribution of $120,000 (50% payment on commencement of construction and 50% on completion) for the provision of public toilets within the main building with external access. These funds will be sourced from the Major Projects budget in 2017/18 and 2017/19. It is estimated annual cleaning of the public toilets will be approximately $24k per annum to be budgeted in the Facilities Management budget from 2018/19 onward.

 

Long-term Financial Plan Implications

 

The proposed annual expenditure on the Head Lease and revenue streams from the sub-lease are captured in the Long Term Financial plan.

 

STRATEGIC COMMUNITY OBJECTIVES

 

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 adopt the Officer Recommendation, there are no residual risks rated as medium or high as these risks have been mitigated through provisions within the Agreement to sub-lease effectively transferring these risks to the proponent. These include, for example:

 

·    Not completing the building: A performance bond of $250,000 is payable to the City upon commencement of the lease, which will enable site remediation should the building be only partially completed;

·    A Bank Guarantee is payable to the City for any breaches of lease conditions and to cover any outstanding amounts payable;

·    Public Liability Insurance of $20m is required to protect against claims of personal injury or property damage as a result of business activities;

·    Building maintenance: Clauses have been added to the sub-lease requiring internal and external conditions of the building to be well maintained; and,

·    Opening hours: Given the strategic location of the site on the foreshore within a highly visited tourist precinct, minimum trading hours (10 hours per day, 7 days per week) have been specified in the sub-lease.

 

In addition, a Development Approval (DA16/0970) issued under delegated authority to the CEO has included conditions to ensure that prior to construction works commencing, the building meets the requirements of the City’s planning policies and a range of other planning matters including, but not limited to, (landscaping, signage, materials, bin storage, servicing areas, fire tanks, public art, floor levels, stormwater management etc) and that the building shall be substantially commenced within two years.

 

CONSULTATION

 

Council has previously sought public submissions on the proposed restaurant/microbrewery/function centre/cellar door documented in previous Council Agenda reports (23/07/14 Council meeting). The dominant issues raised have been addressed as follows;

 

·    Liquor Licensed premises: the venue has been designed as family orientated restaurant, with alfresco space and reflects functionality of similar venues popular with families throughout the Capes region;

·    Parking: the revised BFMP has created additional car-parking bays to the south of the venue and the City is negotiating a contribution of $200,000 to foreshore parking as part of the sub-lease conditions. Additional parking using Hotel Site 3 on the master plan is being considered  by Council,

·    Size of the building footprint: The revised concept has progressively reduced in size as follows:

 

­  Prior to consultation: Lease area 2,100m2 (1,700m2 building plus 400m2 alfresco)

­  Following consultation: Lease are reduced to 1,881m2 (1,509m2 building; 333m2 alfresco, 39m2 public toilets)

­  Development application dimensions: [Ground floor (1,021m2); ground floor public ablutions (40.52m2); covered ground floor alfresco (135.79m2); ground floor entry (38m2) reducing ground floor covered areas to 1,235m2. The remaining areas of the proposed 1,881m2 leased area are landscaped alfresco (468m2) and hard areas.

 

As described above in the section ‘Statutory Environment’, Council has most recently (January 2017) invited public submissions in accordance with disposition of property requirements and received no submissions.

 

Regular briefings and liaison has been undertaken with the Regional Manager (South West) of the Department of Lands with regard to head lease and sub leasing arrangements of the Crown land with a new Lot 561 created in late February 2017.

 


 

OFFICER COMMENT

 

The Busselton foreshore redevelopment project seeks to activate the foreshore with community and recreation facilities, cafes, restaurants, tourism accommodation and entertainment to transform the Jetty precinct onto a major tourism hub for the South West.

 

The Busselton Foreshore Master Plan and Development Guide Plan have been progressively conceptualized and amended by Council over several years in response to community feedback and a publicly advertised invitation for expressions of interest in commercial development.

 

Officers have been negotiating with a ‘preferred proponent’ Credaro Holdings Pty Ltd to develop a two-storey family restaurant, microbrewery, function centre and cellar door facility on a recently excised parcel of land Crown land, which is proposed to be leased to the Council by the Minister for Lands. Council has previously resolved (C1608/207) to authorise the CEO to finalise a Head Lease with the Minister and an ‘Option to Head Lease’ is anticipated to be executed in mid-March 2017.

 

Officers are concluding negotiations with the proponent on a draft Agreement to sub-lease, which will include (but not limited to) clauses relating to the following matters:

 

·    Rights of First Refusal at the expiry of the lease term;

·    A mutually acceptable Bank Guarantee for breaches and amounts payable;

·    Performance Bond for security to complete the works (proposed $250k);

·    Developer contribution to car-parking (proposed $200k ex-gst) to be paid over a negotiated period and directed to improvements to foreshore public car-parking;

·    A Council contribution of $120k (payable over two financial years) to public toilets built within the structure and to the City’s specifications and ongoing maintenance by the City of Busselton;

·    A protection of line of sight from the premises, limiting future permanent obstructive vegetation and buildings/structures with an agreed zone;

·    Public Liability Insurance ($20m);

·    Repainting every seven years; and,

·    Minimum Trading Hours 10 per day,7 days per week, year round (except Christmas Day, ANZAC Day, Good Friday)

 

CONCLUSION

 

The Officer recommendation seeks a Council decision to authorise the CEO to finalise negotiations with Credaro Holdings Pty Ltd and to execute an Agreement to Sub-lease with Geographe Bay Brewing Company Pty Ltd. It also recommends Council dispose of property in accordance with s3.58 of the Local Government Act 1995, by entering a sub-lease of Lot 561 on Deposited Plan 409945, (Crown Land Title Volume 3167 Folio 934) to facilitate a proposed commercial hospitality enterprise identified in the Busselton foreshore master plan.

 

OPTIONS

 

Council may elect to not proceed with the proposed new sub-lease and/or amend the draft terms and conditions negotiated by Officers.

 


 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

It is anticipated an Option to Head Lease Lot 561 will be executed with the Minister for Lands in mid -March 2017. Should Council support the Officer recommendation, the Agreement to sub-lease will be finalised in late March with the Head Lease and Sub-lease executed once all conditions precedent are finalised (including a liquor licence and building approval).

 

OFFICER RECOMMENDATION

 

That the Council:

 

1)    Resolves to sublease, subject to the Minister for Lands’ consent, a portion of Lot 561 on Deposited Plan 409945 (Crown Land Title Volume 3167 Folio 934) to Geographe Bay Brewing Company Pty Ltd (ABN: 69 169 450 088) on the following terms and conditions:

a)    Term:

50 years (an initial term of 25 years with an option to renew for a further term of 25 years.

b)    Rent:

Year 1                                  $1 (one dollar) + GST

Year 2                                  $41,310 + GST

Year 3                                  $63,204 + GST

Year 4                                  $85,957 + GST

Year 5 (and onwards)       Previous year’s rent adjusted by CPI with market rent reviews to be undertaken on the 6th anniversary of the Sublease Commencement Date and every five years thereafter.

 

2)    Delegates to the Chief Executive Officer the power to negotiate and authorises the Chief Executive Officer to enter into the sublease on the further terms and conditions as outlined in this report.

 


Council                                                                                      79                                                                  22 March 2017

13.2           CSRFF SMALL GRANTS ROUND APPLICATION SUMMER

SUBJECT INDEX:

Leisure Services

STRATEGIC OBJECTIVE:

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

BUSINESS UNIT:

Community Services

ACTIVITY UNIT:

Community Development

REPORTING OFFICER:

Community Development Coordinator - Jeremy O’Neill

AUTHORISING OFFICER:

Director, Community and Commercial Services - Naomi Searle

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Dunsborough Cricket Club CSRFF Small Grants Application

Attachment b    Location of Proposed Cricket Nets Dunsborough Playing Fields  

  

PRÉCIS

 

Each year Local Government Authorities are required to rate and prioritise the Community Sport and Recreation Facilities Fund (CSRFF) submissions received within their municipality.

 

In June 2009 several changes were made to the CSRFF program including the introduction of the small grant round, which has a different timeline to the standard grant round. Applications to the small grant round must be submitted by local government authorities to the Department of Sport and Recreation (DSR) by 31 March 2017. The purpose of this report is to meet the CSRFF criteria by outlining the submission received for a project within the City for this current funding round and request that Council rate the application prior to forwarding to DSR for final consideration.

 

BACKGROUND

 

DSR administers the CSRFF program, with the purpose of providing State Government financial assistance to Local Government Authorities and local community groups (up to one third of the total capital cost), to develop well-planned facilities for sport and recreation.

 

In June 2009 several changes were made to the CSRFF program to improve the level of support the Western Australian Government provides to the sporting community. Of particular note is the introduction of the Small Grant Round, which has a different timeline to standard grant rounds. Small Grant Applications must be submitted to DSR from Local Government Authorities by the end of March and August each year. This requires local governments to assess and prioritise applications prior to submission. Successful Small Grants are required to be acquitted prior to 15 June each year.

 

In order to assist with the evaluation of submissions and to ensure projects are viable and appropriate, DSR has developed “Key Principles of Facility Provision”. Accordingly, each submission is to be assessed against those criteria.

 

Under the provision, Local Government Authorities are required to rate and prioritise local submissions using the following guide;

 

RATE      DESCRIPTION

A             Well planned and needed by the municipality

B             Well planned and needed by the applicant

C             Needed by the municipality, more planning required

D             Needed by the applicant, more planning required

E              Idea has merit, more preliminary work needed

F              Not recommended

Submissions for the current funding round closed on Tuesday, 28 February 2017. Following this date, each Local Government Authority is required to assess and prioritise the applications before forwarding all documentation to the South West Office of the DSR no later than 31 March 2017.

 

During April and May 2017 local applications (along with others received throughout the State) will be evaluated and ranked by relevant State Sporting Associations and the CSRFF Assessment Panel, prior to the outcome being announced by the Minister for Sport and Recreation. Funds for successful applications will become available around August 2017.

 

One (1) application was received for the current small grants round as follows:

 

1.            Dunsborough Cricket Club (Inc.) – New Practice Cricket Wickets (Nets)

 

STATUTORY ENVIRONMENT

 

Nil

 

RELEVANT PLANS AND POLICIES

 

Social Plan 2015-2025. A key goal of this plan is to “create needed, quality, sustainable recreation and leisure facilities and services for our community.”

 

The development of new nets at the Dunsborough Playing Fields is consistent with the Council endorsed Active Open Space Planning Recommendations.

 

FINANCIAL IMPLICATIONS

 

The application from the Dunsborough Cricket Club (DCC) is for the development of new practice cricket wickets (nets) at the Dunsborough Playing Fields (lot 3003, Dunsborough), and has a total project cost of $51,570 (ex GST). Due to the timing of the Summer CSRFF Small Grant round, the DCC is proposing to fund up to 2/3 of the total project cost, as a means to expedite the construction of the nets for the 2017/18 summer cricket season. The DCC may look to seek additional funding for this project (up to 1/3 of the total project cost) from the City of Busselton as part of the 2017/18 Community Bids program.

 

Long-term Financial Plan Implications

 

Nil

 

STRATEGIC COMMUNITY OBJECTIVES

 

This matter aligns with the City of Busselton Strategic Community Plan 2013 and principally with the following strategic goal:

 

Caring and Inclusive Community

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

 

Well Planned, Vibrant and Active Places

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

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

 

RISK ASSESSMENT

 

An assessment of the potential risks of implementing the Officers recommendation was undertaken, and as a result, no risks were rated as ‘medium’ or above were identified.

 

CONSULTATION

 

Consultation has taken place between representatives from the DCC, the Officers of the City and staff from the South West Office of DSR in regards to the funding submission received.

 

Officers from Community Services met onsite several times with the club. Officers from Engineering, Works and Services were notified of the project at the outset (including the location and project parameters) and their input was requested / provided. 

 

OFFICER COMMENT

 

Dunsborough Cricket Club (Inc.) –Development of new practice cricket wickets (nets) at the Dunsborough Playing Field -Total Project Cost $51,570

 

An application for the development of new practice cricket wickets (nets) at the Dunsborough Playing Fields has been submitted by the DCC.

 

The DCC proposes to construct a new three bay net facility due to a growth in playing numbers, especially in the junior club, and safety concerns at certain times of the day when using their current facility.

 

The site selected (see Attachment B) is the best location for a much needed facility in Dunsborough for the following reasons:

·    With active playing space at a premium, it will not impact on the use of the oval by soccer, rugby in winter and cricket in summer

·    It will not impact on the limestone pedestrian path linking the Dunsborough Playing Fields to Dunsborough Central Business District

·    The proposed clearing includes a small cluster of trees that were planted when the oval was reconstructed in 2011, as an effort to increase hydro zoning of non-playing space areas at the reserve, and will not have an environmental impact.

 

The orientation of the current structures subjects bowlers to the setting sun when practicing. Due to the angle, and brightness and glare of the sun directly behind the batsman, player vision is impaired when a ball is either hit by a batsman or returned by a batsman, posing a safety concern danger players.

 

Further, due to the number of junior teams that require training time during the week, there is insufficient capacity with the current two net provision, with teams having to train at Dunsborough Primary school where the state of the nets is not fit for purpose. In collaboration with the City of Busselton and DSR, DCC has identified a new area on the Dunsborough Playing Fields that will allow them to build a net facility that meets the safety requirements and playing standards of the growing club. The current nets can also continue to be utilized, particularly in the early evening (with the assistance of sports lighting), when the sun-related glare issues are not as prevalent.

 

After consultation with all stakeholders involved in cricket in Dunsborough, (coaches, players and parents) there was a general agreement that the current provision of cricket nets in Dunsborough is insufficient and of an inadequate standard to meet the needs of a growing club. The proposal for building new nets was discussed and agreed by both the junior and senior club committees. Other users of the northern oval (soccer club) were informed of the proposal, who were in agreement as there is no impact on the soccer pitches. Liaison with the City of Busselton at an early stage established the most effective location for the new nets, and an environmental impact assessment was carried out to confirm this.

 

This project will provide a much needed facility upgrade to cater for the DCC’s current and future training needs for both junior and senior clubs, as well as provide some potential of an expansion of membership in the future. It is recommended that this project be assessed as a ‘high’ priority and that it is (A) Well planned and needed by the municipality.

 

CONCLUSION

 

The application received for the 2017/18 CSRFF Small Grants summer funding round shows sound reasoning and justification, as such it is recommended that Council adopts the Officers Recommendation to allow the projects to proceed should funding from DSR be forthcoming.

 

OPTIONS

 

The Council could decide not to support the application received for the 2017/18 CSRFF Small Grants summer funding round.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

DSR, South West Office staff will be advised in writing of the Council’s decision prior to the end of March 2017 when the full contents of the application are forwarded to their regional office in Bunbury.

 

OFFICER RECOMMENDATION

 

That the Council as part of the 2017/18 CSRFF Small Grants Program supports in principle the development of new practice cricket wickets (nets) at the Dunsborough Playing Fields by Dunsborough Cricket Club as proposed in their application, rating it as ‘A’ and number one priority for consideration.

 


Council

103

22 March 2017

13.2

Attachment a

Dunsborough Cricket Club CSRFF Small Grants Application

 


 


 


 


 


 


 


 


 


 


 


 

 



 


 


 


 


 


 


 


 


 


 


 




Council

106

22 March 2017

13.2

Attachment b

Location of Proposed Cricket Nets Dunsborough Playing Fields

 

 


Council                                                                                      108                                                                22 March 2017

14.             Finance and Corporate Services Report

Nil

15.             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   Planning Applications Received 16 February - 28 February

Attachment b    Planning Applications Determined 16 February - 28 February

Attachment c    State Administrative Tribunal Appeals as at 28 February 2017

Attachment d   Busselton Primary School - Certificate of Appreciation

Attachment e    SW Junior Windsurf School - Certificate of Appreciation  

  

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

15.11.    Planning and Development Statistics

 

Attachment A is a report detailing all Planning Applications received by the City between 16 February, 2017 and 28 February, 2017.  22 formal applications were received during this period.

 

Attachment B is a report detailing all Planning Applications determined by the City between 16 February, 2017 and 28 February, 2017.  A total of 29 applications (including subdivision referrals) were determined by the City during this period with 28 approved / supported and 1 refused / not supported.

15.12.    State Administrative Tribunal (SAT) Appeals

 

Attachment C is a list showing the current status of State Administrative Tribunal Appeals involving the City of Busselton as at 28 February, 2017.

15.13.    Busselton Primary School – Certificate of Appreciation

 

Correspondence has been received from Busselton Primary School and is available to view at Attachment D.

15.14.    SW Junior Windsurf School – Certificate of Appreciation

 

Correspondence has been received from the SW Junior Windsurf School and is available to view at Attachment E.

 

OFFICER RECOMMENDATION

 

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

·    15.11.              Planning and Development Statistics

·    15.12.              State Administrative Tribunal (SAT) Appeals

·    15.13.              Busselton Primary School – Certificate of Appreciation

·    15.14.              SW Junior Windsurf School – Certificate of Appreciation

 

 


Council

110

22 March 2017

15.1

Attachment a

Planning Applications Received 16 February - 28 February

 


 


Council

112

22 March 2017

15.1

Attachment b

Planning Applications Determined 16 February - 28 February

 


 


Council

115

22 March 2017

15.1

Attachment c

State Administrative Tribunal Appeals as at 28 February 2017

 


 


 


Council

116

22 March 2017

15.1

Attachment d

Busselton Primary School - Certificate of Appreciation

 


Council

117

22 March 2017

15.1

Attachment e

SW Junior Windsurf School - Certificate of Appreciation

 


 


Council                                                                                      119                                                                22 March 2017

16.             Motions of which Previous Notice has been Given

Nil  

17.             Confidential Reports  

Nil

18.             Questions from Members  

19.             Public Question Time

20.             Next Meeting Date

Wednesday, 12 April 2017

21.             Closure