COB-RGB

 

 

 

 

 

Council Agenda

 

 

 

11 December 2019

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 11 December 2019

 

 

 

TO:                  THE MAYOR AND COUNCILLORS

 

 

NOTICE is given that a meeting of the Council will be held in the Council Chambers, Administration Building, Southern Drive, Busselton on Wednesday, 11 December 2019, commencing at 5.30pm.

 

Your attendance is respectfully requested.

 

 

DISCLAIMER

Statements or decisions made at Council meetings or briefings should not be relied on (or acted upon) by an applicant or any other person or entity until subsequent written notification has been given by or received from the City of Busselton. Without derogating from the generality of the above, approval of planning applications and building permits and acceptance of tenders and quotations will only become effective once written notice to that effect has been given to relevant parties. The City of Busselton expressly disclaims any liability for any loss arising from any person or body relying on any statement or decision made during a Council meeting or briefing.

 

 

 

Mike Archer

 

CHIEF EXECUTIVE OFFICER

 

2 December 2019


CITY OF BUSSELTON

Agenda FOR THE Council MEETING TO BE HELD ON 11 December 2019

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

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

2....... Attendance. 5

3....... Prayer. 5

4....... Application for Leave of Absence. 5

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

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

7....... Question Time For Public. 5

8....... Confirmation and Receipt Of Minutes. 5

Previous Council Meetings. 5

8.1          Minutes of the Council Meeting held 27 November 2019. 5

Committee Meetings. 6

8.2          Minutes of the Finance Committee Meeting held 21 November 2019. 6

8.3          Minutes of the Meelup Regional Park Committee Meeting held 25 November 2019. 6

9....... RECEIVING OF Petitions, Presentations AND DEPUTATIONS. 6

10..... QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN (WITHOUT DISCUSSION). 6

11..... Items brought forward for the convenience of those in the public gallery. 6

12..... Reports of Committee. 7

12.1        Finance Committee - 21/11/2019 - APPLICATION FOR RATE EXEMPTION - ACCESS HOUSING AUSTRALIA LTD.. 7

12.2        Finance Committee - 21/11/2019 - APPLICATION FOR RATE EXEMPTION - SOUTH WEST COUNSELLING INC. 49

12.3        Finance Committee - 21/11/2019 - BUDGET AMENDMENT REQUEST / REVIEW - LGIS 2019 Surplus Distribution. 98

12.4        Finance Committee - 21/11/2019 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 OCTOBER 2019. 101

12.5        Finance Committee - 21/11/2019 - BUDGET AMENDMENT REQUEST / REVIEW - FLEET CAPITAL ACQUISITIONS. 127

12.6        Meelup Regional Park Committee - 25/11/2019 - MEELUP REGIONAL PARK MANAGEMENT PLAN.. 136

13..... Planning and Development Services Report. 350

13.1        DRAFT ENERGY STRATEGY. 350

13.2        DRAFT DUNSBOROUGH LAKES STRUCTURE PLAN - LOT 9050 CLUBHOUSE DRIVE, DUNSBOROUGH LAKES - CONSIDERATION FOR FINAL APPROVAL. 443

14..... Engineering and Work Services Report. 461

14.1        RFT 23-19 LOU WESTON COURTS CONSTRUCTION & CIVIL WORKS. 461

14.2        RFT 24-19 LOU WESTON PAVILION CONSTRUCTION.. 467

15..... Community and Commercial Services Report. 473

15.1        BUSSELTON JETTY VILLAGE PROPOSAL. 473

15.2        COMMUNITY BIDS 2019/2020 ROUND 2 ALLOCATIONS. 487

15.3        BUSSELTON MARGARET RIVER AIRPORT BUDGET AMENDMENT REQUEST. 492

16..... Finance and Corporate Services Report. 495

16.1        PROPOSED LEASE DUNSBOROUGH AND DISTRICTS PROGRESS ASSOCIATION INC. 495

17..... Chief Executive Officers Report. 501

17.1        COUNCILLORS' INFORMATION BULLETIN.. 501

18..... Motions of which Previous Notice has been Given.. 504

18.1        PROPOSAL TO INSTALL FOUNTAINS IN THE LOWER VASSE RIVER. 504

19..... urgent business. 615

20..... Confidential Matters. 615

21..... Closure. 615

 


Council                                                                                      6                                                             11 December 2019

1.               Declaration of Opening and Announcement of Visitors

 

2.               Attendance 

Apologies

 

Approved Leave of Absence

 

Nil

 

3.               Prayer

 

4.               Application for Leave of Absence  

 

5.               Disclosure Of Interests

 

6.               Announcements Without Discussion

Announcements by the Presiding Member 

 

7.               Question Time For Public

Response to Previous Questions Taken on Notice 

Public Question Time For Public

 

8.               Confirmation and Receipt Of Minutes 

Previous Council Meetings

8.1             Minutes of the Council Meeting held 27 November 2019

Recommendation

That the Minutes of the Council Meeting held 27 November 2019 be confirmed as a true and correct record.

 

Committee Meetings  

8.2             Minutes of the Finance Committee Meeting held 21 November 2019

Recommendation

That the Minutes of the Finance Committee Meeting held 21 November 2019 be noted.

 

8.3             Minutes of the Meelup Regional Park Committee Meeting held 25 November 2019

Recommendation

That the Minutes of the Meelup Regional Park Committee Meeting held 25 November 2019 be noted.

 

9.               RECEIVING OF Petitions, Presentations AND DEPUTATIONS

Petitions

Presentations

Deputations

 

10.             QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN (WITHOUT DISCUSSION)

 

11.             Items brought forward for the convenience of those in the public gallery


Council                                                                                      8                                                             11 December 2019

12.             Reports of Committee

12.1           Finance Committee - 21/11/2019 - APPLICATION FOR RATE EXEMPTION - ACCESS HOUSING AUSTRALIA LTD

STRATEGIC GOAL

STRATEGIC OBJECTIVE

6. LEADERSHIP Visionary, collaborative, accountable

6.1 Governance systems, process and practices are responsible, ethical and transparent.

SUBJECT INDEX

Exemptions and Appeals (Rates)

BUSINESS UNIT

Rates

REPORTING OFFICER

Rates Coordinator - David Nicholson

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

Executive: substantial direction setting, including adopting strategies, plans and policies (excluding local planning policies), tenders, setting and amending budgets, funding, donations and sponsorships, reviewing committee recommendations

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Access Housing Australia Ltd Rate Exemption Application Documentation  

 

This item was considered by the Finance Committee at its meeting on 21 November 2019, the recommendations from which have been included in this report.

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

That the Council:

1.         Approve the rate exemption applications from Access Housing Australia Ltd under section 6.26(2)(g) of the Local Government Act 1995, “land used exclusively for charitable purposes”, effective 1 July 2019 on properties at:

(a)          1/37 Fairbairn Road Busselton

(b)          7/78 Ford Road Busselton

(c)          3/41 Harris Road Busselton

(d)          7 & 9 & 10/4 Maxted Street West Busselton

(e)          4/116 Peel Terrace Busselton

(f)           1/129 Peel Terrace Busselton

(g)          9/22 Thomas Street Busselton

2.         Agree that this rate exemption is to continue where Access Housing Australia Ltd confirms in writing by 30 April annually that they continue to lease the properties and that they continue to be used for the purposes stated in the applications.

 

EXECUTIVE SUMMARY

Applications have been received from Access Housing Australia Ltd (AHA) for rate exemptions on nine residential properties that they lease from the WA Housing Authority (WAHA). On the basis of the applications and known rate exemption eligibility legal opinions, this report recommends that the request for exemptions be granted.

 

BACKGROUND

In June 2018 AHA applied for a rate exemption on 14 residential properties that they owned and 5 residential properties that they leased from WAHA. At its 30 January 2019 meeting, Council granted a rate exemption on these 19 residential properties. Due to an administrative error, AHA failed to include in the June 2018 application the nine residential properties that this report seeks a rate exemption on.

AHA is a not-for-profit Community Housing Organisation, a registered charity and public benevolent institution. It is one of WA’s largest non-government social housing tenancy / property managers, with more than 1,800 properties across the Perth metropolitan area, Peel and South West regions under management. Its tenants include seniors, people living with a disability or mental health illness, families and singles.

 

At the 30 January Meeting, Council also considered the impacts of applying rate exemptions on a holistic basis. It also raised concerns regarding the practice of WAHA leasing its properties to AHA therefore potentially making the properties exempt from rates. At the meeting Council resolved:

 

That the Council:

 

1.    approve Access Housing Australia Ltd rate exemption applications under section 6.26 (2)(g)            of the Local Government Act 1995, “land used exclusively for charitable purposes”, for              properties at:

a)    66 College Avenue West Busselton;

b)    2/3 Elliot Street Busselton;

c)    12 Melville Court Busselton;

d)    2-6 Whitton Street West Busselton;

e)    85 Dorset Street West Busselton;

f)     2/176 Kent Street Busselton; and

g)    3/176 Kent Street Busselton. 

 

                effective from the 1st July 2018.

 

2.    agree that this rate exemption is to continue whilst Access Housing Australia Ltd continues to lease and/or own these properties and confirms in writing by the 30th April annually of lease continuation and that the properties continue to be used for the purposes stated in the applications.

 

3.    agree to write to the Premier, Minister for Housing, Minister for Local Government and the Western Australian Local Government Association, outlining its concern regarding the more recent approach being undertaken by the State Government to lease their properties to Community Housing Organisations such as Access Housing, as it is having a detrimental impact to the local government’s rate base and ability to provide services to the community.

 

4.    request that the State Government establish a requirement in all new and renewed lease agreements, when state government housing portfolios are being disposed of to Community Housing Organisations, that the Community Housing Organisation be made responsible for the payment of local government rates to the relevant Councils.

 

The Minister responded to the City’s concerns in March 2019, acknowledging the dilemma faced by local government in general, and encouraged the City to voice these concerns as part of the Local Government Act 1995 review process currently underway.

 

As a not-for-profit organisation, AHA reinvests any profits made through its core business into servicing its property portfolio, developing and purchasing additional affordable homes. They also have funding programs supporting tenants to access education, training and employment options. This assists the tenants by increasing their financial resilience and to break welfare dependency. This approach allows the organisation to facilitate pathways into and out of the social housing system for current and prospective tenants, while also providing a high quality, customer focused service.

 


 

Housing is provided by AHA to occupants via three programs. These programs are:

 

Housing Programs

Community Housing (CH)

Subsidised rental housing for Eligible Persons on very low and low to moderate incomes

Community Disability Housing Program (CDHP)

Disability Independent Living Units

Transitional Housing and Support Program managed by the Drug and Alcohol Office

Housing for people with mental health support needs through the Independent Living Program (ILP), Independent Supported Accommodation (ISA) or Mental Health Housing Strategy

Crisis Accommodation Program (CAP)

Short to medium term crisis accommodation for people who are homeless or at risk of homelessness

 

Rate exemptions are being sought by AHA on the following WAHA owned residential properties that they lease and manage. These properties are used by AHA for their CDHP program and are therefore considered eligible for rate exemption. This is in addition to the properties previously provided with a rating exemption.

 

SCHEDULE OF WAHA LEASED PROPERTIES

Number

Street

Suburb

Control

1/37

Fairbairn Road

Busselton

Managed Lease

7/78

Ford Road

Busselton

Managed Lease

3/41

Harris Road

Busselton

Managed Lease

7 & 9 & 10/4

Maxted Street

West Busselton

Managed Lease

4/116

Peel Terrace

Busselton

Managed Lease

1/129

Peel Terrace

Busselton

Managed Lease

9/22

Thomas Street

Busselton

Managed Lease

 

Documentation provided as part of the applications includes:

 

·    Applications for Rate Exemptions Including Property Use Statutory Declarations.

·    Rate Exemption Application Covering Letter

·    Supporting Document - Organisation Certificate of Registration and Constitution, Australian Tax Office Notice of Endorsement for Charity Tax Concessions and Financial Report Year Ending 30 June 2017 and 30 June 2016

 

Due to privacy issues, copies of the lease agreements between AHA and tenants were not able to be provided.

OFFICER COMMENT

In accordance with Section 6.26(2)(g) of the Act, land is not rateable if it is used exclusively for charitable purposes. Rate exemption applications need only be considered in two parts – being firstly is the use itself “charitable” and secondly if the use is considered to be charitable, then is the property being used “exclusively” for such use.

 


 

In considering the first part, that is, ‘are the operations of AHA considered to be a charitable use’, legal opinions have been consistent in defining a charitable purpose as land used for:

 

1.            The relief of poverty;

2.            The advancement of education;

3.            The advancement of religion; and

4.            Other purposes beneficial to the community.

 

The leased properties are being used by AHA for their Community Disability Housing Program (CDHP) and so are considered to meet the “other purposes beneficial to the community” charitable definition.

 

In considering the second part, that is, ‘is the property being exclusively used for a charitable purpose’, this criteria is being met due to the properties, while leased from WAHA, are being used for providing accommodation for people with disabilities, drug and alcohol issues and mental illness.

 

There has been no physical inspection of the properties due to their residential purpose and that the tenant would need to be interviewed to determine if they meet the CDHP program. Also it is known that other Councils have obtained legal opinions concluding that services provided by AHA and other Community Housing Organisations are considered to be a charitable in nature and therefore eligible for rate exemptions.  An in-house survey of other Councils within WA reveal that the majority are granting rate exemption on properties that AHA own or lease.

 

In terms of the current usage of the properties, there are no known planning, health or building compliance issues.

If rate exemptions are approved then the applicant will be instructed to confirm by 30 April annually that the property continues to be used for the purposes stated in the applications. If a change has occurred and the new use is not eligible for rate exemption then the property will become rateable.

Statutory Environment

Section 6.26 of the Local Government Act 1995 (the Act) provides broad definitions for rateable and non-rateable land. Moreover, section 6.26(2)(g) states that land is not rateable if it is “used exclusively for charitable purposes”.

Relevant Plans and Policies

There are no relevant plans or policies to consider in relation to this matter.

Financial Implications

The rate exemption applications were lodged in April 2019 so, if approved, would be applied effective 1 July 2019. This would see a $12,800.63 reduction to the 2019/2020 rating income. There would be similar reductions plus annual increases for future financial periods.

Stakeholder Consultation

No external stakeholder consultation was required or undertaken in relation to this matter.

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place. No risks of a medium or greater level have been identified.

 

Having said that, if Council choses to not approve the applications for rate exemption then staffing and/or legal costs may be incurred if the applicant refers the matter to the State Administrative Tribunal (SAT) for review of the decision.

Options

As an alternative to the proposed recommendation the Council could decline the rate exemption applications on the basis that it considers that the properties leased by AHA are not providing a charitable service to the community or that the properties are not being used exclusive use of the property. Should the applications be declined for either of these reasons, then AHA will have the option to refer the matter to the State Administrative Tribunal for a review of the decision.

However, Council would need to be mindful of any precedent set, as there have already been some properties approved for rate exemption.

 

CONCLUSION

It is considered, based on the applications and associated documentation provided by AHA, legal opinions obtained by other Councils, that the properties listed in the applications are eligible for rate exemption due to their use being exclusive for charitable purposes.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The proposed effective date for rate exemptions if approved would be 1 July 2019 due to the applications being lodged in April 2019, prior to the issuance of the 2019/2020 annual rate notice.

 

 


Council

48

11 December 2019

12.1

Attachment a

Access Housing Australia Ltd Rate Exemption Application Documentation

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Council                                                                                      52                                                          11 December 2019

12.2           Finance Committee - 21/11/2019 - APPLICATION FOR RATE EXEMPTION - SOUTH WEST COUNSELLING INC

STRATEGIC GOAL

STRATEGIC OBJECTIVE

6. LEADERSHIP Visionary, collaborative, accountable

6.1 Governance systems, process and practices are responsible, ethical and transparent.

SUBJECT INDEX

Exemptions & Appeals (Rates)

BUSINESS UNIT

Rates

REPORTING OFFICER

Rates Coordinator - David Nicholson

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

Executive: substantial direction setting, including adopting strategies, plans and policies (excluding local planning policies), tenders, setting and amending budgets, funding, donations and sponsorships, reviewing committee recommendations

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   South West Counselling Inc Rate Exemption Documentation  

 

This item was considered by the Finance Committee at its meeting on 21 November 2019, the recommendations from which have been included in this report.

 

OFFICER RECOMMENDATION

That the Council declines the rate exemption application from South West Counselling Inc. for 122 Adelaide Street Busselton under section 6.26(2)(g) of the Local Government Act 1995, “land used exclusively for charitable purposes”.

 

COMMITTEE RECOMMENDATION

That the Council approves the rate exemption application from South West Counselling Inc. for 122 Adelaide Street Busselton under section 6.26(2)(g) of the Local Government Act 1995, “land used exclusively for charitable purposes”

 

Reasons:           The Committee deemed that the applicant uses the land exclusively for charitable purposes

 

EXECUTIVE SUMMARY

An application has been received from South West Counselling Inc. (SWCI) for a rate exemption on 122 Adelaide Street Busselton. This is a residential property that SWCI own and use to provide low fee or no fee counselling, advocacy and support to people across the South West region. SWCI also provide fee for service employee assistance programs and training. On the basis of the application, and background assessment, this report recommends that the application for exemption be declined.

 

BACKGROUND

SWCI is a not-for-profit organisation that has a charitable collections licence with Consumer Affairs, is a registered charity with the Australian Charities and Not–for-profits Commission and has deductible gift recipient endorsement with the Australian Taxation Office.

 


 

According to SWCI constitution their objects are to:

 

1)    Provide counselling, welfare, benevolent and charitable facilities and services for the relief of suffering, distress, destitution, helplessness, and poverty and for meeting the needs of and providing help for individuals requiring support and assistance in the community generally and without discrimination.

2)    Provide facilities for the support, education and training of staff

3)    Provide other benevolent and charitable facilities and services for the welfare of the community

 

They also do provide Employee Assistance Programs on behalf of local employers on a fee-for- service basis.

 

Areas of Counselling according to SWCI web site are:

 

·      Relationship Issues

·      Depression

·      Anxiety

·      Stress

·      Bereavement

·      Family Separation

·      Trauma

·      Family and Domestic Violence

·      Gambling Help

·      Alcohol and Substance Misuse

·      Sexual Abuse

·      Grief

·      Self Esteem Issues

·      Health Issues

·      Sexuality 

·      Workplace issues

The main income derived by SWCI for the 2017/2018 financial year was $473.9K from the Department of Child Protection, $71.8K from various grants plus donations and fundraising, and $59.6k from fees for services.

 

The property at 122 Adelaide Street Busselton is owned by SWCI and utilised on a full-time basis to provide all their counselling, advocacy and support services.


OFFICER COMMENT

In accordance with section 6.26(2)(g) of the Local Government Act 1995 (the Act), land is not rateable if it is used exclusively for charitable purposes. Rate exemption applications need only be considered in two parts – being firstly is the use itself “charitable” and secondly if the use is considered to be charitable, then is the property being used “exclusively” for such use.

 

In considering the first part, that is, ‘are the operations of SWCI considered to be a charitable use’, legal opinions have been consistent in defining a charitable purpose as land used for:

 

1.             The relief of poverty;

2.             The advancement of education;

3.             The advancement of religion; and

4.             Other purposes beneficial to the community.

 

The use of 122 Adelaide Street Busselton by SWCI is considered to meet the “relief of poverty”, “advancement of education” and “other purposes beneficial to the community” charitable definition.

 

In considering the second part, that is, ‘is the property being exclusively used for a charitable purpose’, it is acknowledged that fee for service is also part of the organisation’s business model. SWCI are the sole occupants of the property from which they provide their services. Therefore the application does not meet this second part.

 

No physical inspection of the property has been undertaken as it is not considered that this would alter eligibility for rate exemption. This is also because the SWCI statutory declaration clearly states the purpose of the property.

 

In terms of the current usage of the property, there are no known planning, health or building compliance issues.

 

Considering that a commercial element is apparent for the services provided by SWCI and the risks associated with similar organisations claiming rate exemptions, this application is not recommended for approval.

 

Statutory Environment

Section 6.26 of the Act provides broad definitions for rateable and non-rateable land. Moreover, Section 6.26 (2)(g) states that land is not rateable if it is “used exclusively for charitable purposes”.

Relevant Plans and Policies

There are no relevant plans or policies to consider in relation to this matter.

Financial Implications

The rate exemption application was lodged in July 2019 so if approved would be applied effective 1 July 2019. This would see a $1,869.34 reduction to the 2019/2020 rating income. There would be similar reductions plus annual increases for future financial periods.

 

In addition, the setting of a precedent for similar organisations is a concern for the City’s future rate base.

Stakeholder Consultation

No external stakeholder consultation was required or undertaken in relation to this matter.

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place. No risks of a medium or greater level have been identified.

Options

As an alternative to the proposed recommendation the Council could approve the rate exemption application on the basis that it considers that the property used by SWCI is providing a charitable service to the community.

 

If a rate exemption is approved then the applicant will be instructed to confirm by 30 April annually that they continue to lease the property and that its use remains as per the application. If a change has occurred and the new use is not eligible for rate exemption then the property will become rateable.

 

CONCLUSION

It is considered, based on the application and associated documentation provided by SWCI, and the fact that a portion of their activity provides fee-for-service arrangements, that the property listed in the application is not eligible for rate exemption.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The applicant would be advised following Council resolution.

 


Council

97

11 December 2019

12.2

Attachment a

South West Counselling Inc Rate Exemption Documentation

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Council                                                                                      100                                                        11 December 2019

12.3           Finance Committee - 21/11/2019 - BUDGET AMENDMENT REQUEST / REVIEW - LGIS 2019 Surplus Distribution

STRATEGIC GOAL

STRATEGIC OBJECTIVE

6. LEADERSHIP Visionary, collaborative, accountable

6.1 Governance systems, process and practices are responsible, ethical and transparent.

SUBJECT INDEX

Budget Planning and Reporting

BUSINESS UNIT

Financial Services

REPORTING OFFICER

Manager Financial Services - Paul Sheridan

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

Executive: substantial direction setting, including adopting strategies, plans and policies (excluding local planning policies), tenders, setting and amending budgets, funding, donations and sponsorships, reviewing committee recommendations

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Nil

 

This item was considered by the Finance Committee at its meeting on 21 November 2019, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

That the Council endorse the requested budget amendment outlined in Tables 1 below resulting in no change to the budgeted cash position:

 

Table 1:

Cost Code

Description

Current Budget

Change

Resulting Proposed Amended Budget

Revenue

 

 

 

 

211-10200-1509-0000

Reimbursements - Insurance

-$50,000

-$50,689

-$100,689

Current Assets

 

 

 

 

9000-7001

Municipal Cash at Bank

$50,000

$50,689

$100,689

9000-7001

Municipal Cash at Bank

$0

-$50,689

-$50,689

9000-7054

Restricted Cash at Bank

$0

$50,689

$50,689

Reserves

 

 

 

 

9000-2500

Transfer from Reserves

$0

$50,689

$50,689

111-9102

Transfer to Legal Reserve

$0

-$50,689

-$50,689

 Net Total 

$0

$0

$0

 

EXECUTIVE SUMMARY

This report seeks recommendation of the Finance Committee to Council for the approval of budget amendments as detailed in this report. Adoption of the officer recommendation will result in no change to the Municipal cash balance.


BACKGROUND

Council adopted its 2019/2020 municipal budget on Wednesday 31 July 2019 with a balanced budget position. Since this time, Council has been advised of certain expense changes that have impacted the original budget. The Finance Committee is now being asked to consider recommending to Council a budget amendment for the following item:

·    Recognition of the additional LGIS 2019/20 insurance reimbursement.

·    The proceeds of a fine received in the 2018/19 financial year into the legal reserve.

OFFICER COMMENT

In the 2018/19 year the City received proceeds from a fine of $76,070 from a supplier in relation to a compliance issue involving unauthorised extraction of sand.  At the time it was not transferred into the legal reserve as intended, but rather, remained in Municipal Funds.

 

During the 2019/20 financial year the City’s insurer, LGIS, finalised their 2018/19 result, which realised a surplus distribution to member Local Governments, of which the City’s share was $100,689.  This is in excess ($50,689) of the budgeted distribution of $50,000.

 

It was determined by management that the additional funds received from LGIS should be utilised to bring into effect the transfer to legal reserve that should have occurred in the 2018/19 financial year. The City’s legal reserve is utilised to engage suitable qualified practitioners to assist with legal matters or procedures that can occur unexpectedly.

 

While $50,689 is not the full amount of what was originally paid to the City for the fine, it allows a transfer to happen without a negative impact on our cash position while keeping to the principles of the original intention of transferring funds from the fine into the legal reserve.

 

Planned Amendment Items

Officers propose that the 2019/2020 adopted budget be amended to reflect the following changes, shown in Table 1.

 

Table 1:

Cost Code

Description

Current Budget

Change

Resulting Proposed Amended Budget

Revenue

 

 

 

 

211-10200-1509-0000

Reimbursements - Insurance

-$50,000

-$50,689

-$100,689

Current Assets

 

 

 

 

9000-7001

Municipal Cash at Bank

$50,000

$50,689

$100,689

9000-7001

Municipal Cash at Bank

$0

-$50,689

-$50,689

9000-7054

Restricted Cash at Bank

$0

$50,689

$50,689

Reserves

 

 

 

 

9000-2500

Transfer from Reserves

$0

$50,689

$50,689

111-9102

Transfer to Legal Reserve

$0

-$50,689

-$50,689

 Net Total 

$0

$0

$0

Statutory Environment

Section 6.8 of the Local Government Act 1995 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

The financial implications of this recommendation are contained within the report.

Stakeholder Consultation

No external stakeholder consultation was required or undertaken in relation to this matter.

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place.

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.

Options

The Council could decide not to go ahead with the proposed budget amendment request.

 

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.

 

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.

 


Council                                                                                      108                                                        11 December 2019

12.4           Finance Committee - 21/11/2019 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 OCTOBER 2019

STRATEGIC GOAL

STRATEGIC OBJECTIVE

6. LEADERSHIP Visionary, collaborative, accountable

6.1 Governance systems, process and practices are responsible, ethical and transparent.

SUBJECT INDEX

Budget Planning and Reporting

BUSINESS UNIT

 

REPORTING OFFICER

Manager Financial Services - Paul Sheridan

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

Executive: substantial direction setting, including adopting strategies, plans and policies (excluding local planning policies), tenders, setting and amending budgets, funding, donations and sponsorships, reviewing committee recommendations

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Investment Report October 2019

Attachment b    Financial Activity Statement Year to Date October 2019  

 

This item was considered by the Finance Committee at its meeting on 21 November 2019, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 31 October 2019, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations.

 

EXECUTIVE SUMMARY

Pursuant to Section 6.4 of the Local Government Act 1995 (the Act) and Regulation 34(4) of the Local Government (Financial Management) Regulations 1996 (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 October 2019.

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 31 July 2019, the Council adopted (C1907/131) the following material variance reporting threshold for the 2019/20 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 2019/20 financial year as follows:

 

·    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; and

·    Reporting of variances only applies for amounts greater than $25,000.”

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 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 October 2019

The Statement of Financial Activity for the year to date as at 31 October 2019 shows an overall Net Current Position of $39.6M as opposed to the amended budget of $25.9M. The following summarises the major variances in accordance with Council’s adopted material variance reporting threshold that collectively make up the above difference:


 

Description

2019/20
Actual YTD

2019/20
Amended
Budget YTD

2019/20
Amended
Budget

2019/20
YTD Bud Variance

2019/20
YTD Bud Variance

 

$

$

$

%

$

Revenue from Ordinary Activities

 

1.     Operating Grants, Subsidies and Contributions

1,722,448

949,758

4,926,958

81.36

772,690

2.     Interest Earnings

831,474

694,405

1,955,000

19.74

137,069

 

 

 

 

 

 

Expenses from Ordinary Activities

 

 

 

 

3.     Materials & Contracts

(4,503,182)

(5,776,747)

(18,298,949)

22.05

1,273,565

4.     Utilities (Gas, Electricity, Water etc)

(778,197)

(911,298)

(2,774,257)

14.61

133,101

5.     Allocations

478,342

721,306

2,161,452

(33.68)

(242,964)

 

 

 

 

 

 

6.    Non-Operating Grants, Subsidies and Contributions

1,713,236

2,231,126

32,050,712

(23.21)

(517,890)

 

 

 

 

 

 

Capital Revenue & (Expenditure)

 

 

 

 

7.     Land & Buildings

(704,153)

(5,596,608)

(18,097,358)

87.42

4,892,455

Plant & Equipment

(460,436)

(1,358,332)

(4,493,000)

66.10

897,896

Furniture & Equipment

(51,552)

(366,352)

(1,113,069)

85.93

314,800

Infrastructure

(3,661,821)

(8,807,818)

(36,920,295)

58.43

5,145,997

8.     Proceeds from Sale of Assets

242,683

370,550

3,476,580

(34.51)

(127,867)

9.     Repayment Capital Lease

(319,526)

(189,824)

(759,300)

(68.33)

(129,702)

10.  Transfer to Restricted Assets

(83,962)

(20,036)

(60,100)

(319.06)

(63,926)

11.  Transfer from Restricted Assets

484,951

0

6,319,121

100

484,951

12.  Transfer from Reserves

1,232,906

1,657,906

34,970,205

(25.63)

(425,000)

 

Revenue from Ordinary Activities

Year to date (YTD) actual income from ordinary activities is $1.454M more than expected when compared to year to date amended budget with the following items meeting the material variance reporting threshold being:

1.    Operating Grants, Subsidies and Contributions are $773K (net) better than amended budget. This variance is mainly due to the following:

·    Grants Commission (10152) -$46K – local roads grant, special grants for bridges.  This variance arose as we did not receive the quarterly grants for the Kaloorup and Boallia roads bridges.  It should be noted that as this is a pass through to Main Roads, the related capital expenditure items have not occurred either, so it is a neutral position on cash basis.  The Director of EWS advises that should work on these particular bridges actually go ahead, Main Roads may hold the grants directly themselves;

·    Insurance Reimbursements (10200) $76K – Insurance recoveries not yet allocated to correct section and contributions credit (1st and 2nd instalments), received earlier than expected;

·    Legal Fees Reimbursements (10500) -$26K – budget item included for a fine that was received in the 18/19 financial year;

·    Environmental Management Administration (10830) $170K – grant received for the Revitalizing Geographe Waterways Phase 2 project earlier than forecast;

·    Protective burning and firebreaks reserve (10931) $166K. This variance relates to receiving 50% grant awarded to the City under the mitigation activity fund (Emergency Services Levy) and will be subject to a Council report requesting that the 2019/20 budget be amended to reflect this additional income.  Details of the cost codes for this amendment are being finalised;

·    Bushfire risk management planning (10942) DFES $115K. This variance relates to the payment of grant in full for the bushfire risk planning coordinator position within the City of Busselton. This represents a timing difference between budget allocations (over 12 months), and actual funds received;

·    Fire Prevention DFES (10940) $49K – this is due to a combination of receiving the quarterly ESL grant a month earlier than forecast ($90K over), and not receiving the prior period grant acquittal adjustment that was forecast in October ($41K under);

·    Reimbursements Old Butter Factory (B1401 & B9610) $193K – timing difference due to difficulties in predicting when LGIS would process the claims;

2.    Interest earnings is $137K better than amended budget.  This variance is mainly due to the following:

·    Late payment interest (NA1203) $29K

·    Instalment plan interest (NA1204) $52K

·    Interest on municipal funds (NA1760) $72K

·    Interest on reserve funds (NA1761) -$41K

·    Interest on restricted funds (NA1762) $25K

 

Expenses from Ordinary Activities

Expenditure from ordinary activities is $1.66M less than expected when compared to amended YTD budget, with the following items meeting the material variance reporting threshold:

 

3.    Materials and Contracts $1.27M

The main contributing items are listed below:

Cost Code

Cost Code Description / GL Activity

Variance
YTD
$

Finance and Corporate Services

 

10000

Members of Council

(33,793)

10250

Information & Communication Technology Services

(113,255)

10500

Legal and Compliance Services

25,554

Community and Commercial Services

 

10380

Busselton Library

36,298

10600

Busselton Jetty Tourist Park

108,166

Planning and Development Services

 

10820

Strategic Planning

80,471

10830

Environmental Management Administration

90,897

10850

Implement Management Plans Other

29,649

Engineering and Works Services

 

Various

Busselton Jetty Maintenance

272,830

12620

Rural-Tree Pruning

(114,942)

12621

Urban-Tree Pruning

(54,063)

Various

Bridge Maintenance

66,839

Various

Building Maintenance

77,631

Various

Other Infrastructure Maintenance

32,973

Various

Waste services

235,625

Various

Road Maintenance

(66,270)

Various

Reserve Maintenance

192,017

 


 

4.    Utilities $133K better than amended YTD budget:

This relates mainly to a total underspend YTD in the 140 electricity accounts of $108K, $14K in water and $10K in telephones.  Anecdotally this relates to timing differences of when the various invoices are received and processed, which, based on previous years, usually resolves itself closer to budget by year end. The accounts are monitored and reviewed with any major anomalies investigated.

 

5.    Allocations

In addition to administration based allocations which clear each month, this category 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). It should be noted that performance in the category has no direct impact on the closing position.  

 

Non-Operating Grants, Subsidies and Contributions

6.    Non-Operating Grants, Subsidies and Contributions are less than budget by $518K with the main items impacting on the above result being the timing of the receipt of funding which is also offset with less than anticipated capital expenditure at this time.

 

Cost Code

Cost Code Description

Variance
YTD

Finance and Corporate Services

 

10239

Contributions - Community Facilities

(250,674)

R0288/R0228

Contributions - Capital Activities - Locke Estate

48,000

Community and Commercial Services

 

C6099

Airport Development - Project Grant

477,978

Engineering and Works Services

 

C1512

Port Geographe Boat Ramp Renewal Works

(55,000)

C3113

Busselton Tennis Club - Infrastructure

80,000

C3168

Busselton Foreshore Jetty Precinct

(102,740)

C3186

Lou Weston Oval - Courts

(65,000)

F0019

College Avenue

72,000

S0035

Strelly Street / Barlee Street Roundabout

39,158

S0051

Causeway Road / Rosemary Drive Roundabout

(266,668)

S0064

Peel Terrace (Stanley Pl/Cammilleri St Intersection Upgrade)

(66,668)

S0069

Peel Terrace (Brown Street Intersection Upgrades)

(33,332)

S0070

Peel & Queen Street Roundabout Service Relocation

33,332

S0071

Ludlow-Hithergreen Road Safety Improvements

230,600

S0072

Kaloorup Road - Reconstruct and Seal Shoulders

100,000

T0019

Wonnerup South Road - Reconstruct and Widening (narrow seal)

(208,180)

T0085

Yoongarillup Road - Reconstruct Intersection at Vasse H/Way

(70,000)

T0086

Yoongarillup Road - Reconstruct & Widen (Western Section)

(492,700)

 

 


 

Capital Expenditure

7.    As at 31 October 2019, there is a variance of 69.8% or $11.2M in total capital expenditure with YTD actual at $4.9M against YTD amended budget of $16.1M.

 

The attachments to this report include detailed listings of all capital expenditure (project) items, however the main areas of variance are summarised as follows:

a.    Buildings on the whole are $4.9M below budget with the main variance attributable to the Airport Terminal Stage 2, with a budget amendment pending Council approval at the time of writing;

b.    Plant and equipment is $897K below budget, however at this stage this is mainly related to budget timing differences.  It should be noted that there are budget amendments pending;

c.     Furniture & Office Equipment is $315K under budget, with major variances attributable to Information & Communication Technology being $220K below budget, and the delays in the Airport fit-out amounting to $100K;

d.    Busselton foreshore is $678K below budget, mainly due to a timing underspend compared to budget for the Busselton Tennis Club Infrastructure;

e.    Administration building carpark $25K below budget;

f.     Lou Western Oval Courts $269K below budget;

g.    Various footpaths construction $131K below budget;

h.    Various car parking construction $68K below budget;

i.      Townscape works $226K below budget;

j.     Boat Ramps Construction $212 over budget;

k.    Depot Construction $28K below budget;

l.      Beach restoration works $250K over budget;

m.   Parks and gardens works $436K below budget;

n.    Beach Front Infrastructure Works $30K below budget;

o.    Sanitation infrastructure works $1,081K below budget;

p.    Airport development works (not included in 1. above) $588K below budget;

q.    Main Roads road construction works $766K below budget;

r.     Roads to Recovery road works $760K below budget;

s.     Black spot works $84K over budget;

t.     Council road initiatives road works $580K below budget.

 

Many of these items of under expenditure e.g. Main Roads construction works, also assists in explaining the above current YTD shortfall in Non-Operating Grants. In the main, many of these projects have yet to be commenced at this time of year and represent a timing difference.

 

Proceeds from Sale of Assets

8.    There is a variance for the proceeds from sale of assets of -$128K, due to delays in the changeover of vehicles.

 

Repayment of Capital Leases

9.    There is a variance for the repayments of capital leases as compared to year to date budget of -$130k. This variance is a timing issue as this is the first year that the City has brought to account leases as a capital repayment in accordance with the requirements of AASB 16. Under AASB 16 there is no longer a distinction between finance and operating leases. Lessees are now required to bring to account a right-to-use asset and lease liability onto their statement of financial position for all leases. Effectively this means the vast majority of operating leases as defined by the current AASB 117 Leases which currently did not previously impact the statement of financial position are now required to be capitalised on the statement of financial position.  A budget amendment that is pending Council approval will rectify this budget anomaly.

 

Transfer to Restricted Assets

10.  There is a variance for transfer to restricted assets of $64K more than amended budget.   The reason for this is as follows:

·    Transfer to deposits and bonds of $38K as opposed to a budget of $0. These funds do not have a budget allocation as they are not able to be reliably measured;

·    Interest earned on government grants of $25K transferred to restricted cash, for which there was no budget allocated as it was expected that the grant would have been utilized by this stage.

 

Transfer from Restricted Assets

11.  There is a variance for transfer from restricted assets of $485K more than amended budget.   The reason for this is as follows:

·    Transfer from Roadwork Bonds of $469K as opposed to a budget of $0.  These funds do not have a budget allocation as they are not able to be reliably measured.

 

Transfer from Reserves

12.  There is a variance for transfer from reserves of $425K less than amended budget.   The reason for this is as follows:

·    Transfer from Jetty Maintenance Reserve of $425K did not occur due to works not being undertaken on cost code C3497 (see 7m above).

 

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 31st October 2019 the value of the City’s invested funds totalled $84.48M, up slightly from $84.47M as at 30th September. The increase is due to interest earnings.

 

During the month of October four term deposits held with three different institutions totalling $13.5M matured. All were renewed for a further 181 days at 1.55% (on average).

 

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) remained steady.

 

The balance of the Airport Development ANZ and WATC cash accounts remained steady, other than a small increase due to interest earnings.

 

The RBA announced a 0.25% decrease to official rates in September. No change was announced in November. Future movements are unknown at this time although further drops are possible in coming months.

 

Chief Executive Officer – Corporate Credit Card

Details of monthly (September to October) transactions made on the Chief Executive Officer’s corporate credit card are provided below to ensure there is appropriate oversight and awareness of credit card transactions made.


 

Date

$ Amount

Payee

Description

7/10/19

1,068.89

Qantas

Flights to attend RCE board meeting Canberra (Grant Henley – cancelled 11/10)

8/10/19

230.00

APVC Ltd / The Sebel

Accom. - Mayoral Prayer Guest Speaker (Lisa Haste)

9/10/19

50.00

Reg Now Busselton Runner

Bsn Half Marathon - Sister City Participants (Tonia Kilian)

9/10/19

50.00

Reg Now Busselton Runner

Bsn Half Marathon - Sister City Participants (Tonia Kilian)

14/10/19

80.91

Reg Now Jetty Swim 2020

1 Mile Jetty Swim - Sister City Participant (Tonia Kilian)

16/10/19

179.89

Hertz Australia Melbourne

Car Hire - LGCOG Conference (Mike Archer)

*Funds debited against CEO Annual Professional Development Allowance as per employment Contract Agreement

+ Allocated against CEO Hospitality Expenses Allowance

Statutory Environment

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

Relevant Plans and Policies

There are no relevant plans or policies to consider in relation to this matter.

Financial Implications

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

Stakeholder Consultation

No external stakeholder consultation was required or undertaken in relation to this matter.

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place. No risks of a medium or greater level have been identified.

Options

The Statements of Financial Activity are presented in accordance with Section 6.4 of the Act and Regulation 34 of the Regulations and are to be received. Council may wish to make additional resolutions as a result of having received these reports.

 

CONCLUSION

As at 31 October 2019, the City’s financial performance is considered satisfactory.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

 


Council

109

11 December 2019

12.4

Attachment a

Investment Report October 2019

 


Council

126

11 December 2019

12.4

Attachment b

Financial Activity Statement Year to Date October 2019

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Council                                                                                      134                                                        11 December 2019

12.5           Finance Committee - 21/11/2019 - BUDGET AMENDMENT REQUEST / REVIEW - FLEET CAPITAL ACQUISITIONS

STRATEGIC GOAL

STRATEGIC OBJECTIVE

6. LEADERSHIP Visionary, collaborative, accountable

6.1 Governance systems, process and practices are responsible, ethical and transparent.

SUBJECT INDEX

Budget Planning and Reporting

BUSINESS UNIT

Financial Services

REPORTING OFFICER

Manager Financial Services - Paul Sheridan

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

Executive: substantial direction setting, including adopting strategies, plans and policies (excluding local planning policies), tenders, setting and amending budgets, funding, donations and sponsorships, reviewing committee recommendations

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   2019/20 Fleet Capital Acquisition Budget - Amended  

 

This item was considered by the Finance Committee at its meeting on 21 November 2019, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

That the Council endorse the requested budget amendment outlined in Table 1 below resulting in a $0 effect on the City’s net current position, recognising that the closing balance in three reserves will be net better off by $1,052,500:

Table 1:

Cost Code

Description

Current Amended Budget

Change

Resulting Proposed Amended Budget

Revenue

 

 

 

 

528-11403-1770-0000

Profit on Asset Disposal

(3,000)

3,000

0

528-11403-1770-0000

Profit on Asset Disposal

(5,000)

5,000

0

Expenses

 

 

 

 

528-11151-3550-0000

Loss on Asset Disposal – Airport Operations

(9,000)

9,000

0

528-11151-3551-0000

Written Down Book Value on Disposal – Airport Operations

10,800

(10,800)

0

528-11404-3550-0000

Loss on Asset Disposal – Plant Purchases

(12,500)

12,500

0

528-11404-3551-0000

Written Down Book Value on Disposal – Plant Purchases

13,900

(13,900)

0

528-11404-3550-0000

Loss on Asset Disposal – Plant Purchases

(12,500)

12,500

0

528-11404-3551-0000

Written Down Book Value on Disposal – Plant Purchases

13,900

(13,900)

0

528-11404-3550-0000

Loss on Asset Disposal – Plant Purchases

(25,500)

25,500

0

528-11404-3551-0000

Written Down Book Value on Disposal – Plant Purchases

34,766

(34,766)

0

Current Assets

 

 

 

 

9000-7054

Cash at Bank – Restricted Funds

(21,000)

21,000

0

9000-7054

Cash at Bank – Restricted Funds

(800,000)

800,000

0

9000-7054

Cash at Bank – Restricted Funds

(12,000)

12,000

0

9000-7054

Cash at Bank – Restricted Funds

(12,000)

12,000

0

9000-7054

Cash at Bank – Restricted Funds

0

(28,000)

(28,000)

9000-7054

Cash at Bank – Restricted Funds

(82,500)

82,500

0

9000-7054

Cash at Bank – Restricted Funds

(82,500)

82,500

0

9000-7054

Cash at Bank – Restricted Funds

(59,500)

59,500

0

9000-7054

Cash at Bank – Restricted Funds

(31,000)

31,000

0

9000-7054

Cash at Bank – Restricted Funds

0

(20,000)

(20,000)

Non-Current Assets

 

 

 

 

528-11151-7723-0000

Expense Offset Plant & Equipment – Airport Operations

30,000

(30,000)

0

528-11402-7723-0000

Expense Offset Plant & Equipment – Plant Purchases

800,000

(800,000)

0

528-11403-7723-0000

Expense Offset Plant & Equipment – Plant Purchases

15,000

(15,000)

0

528-11403-7723-0000

Expense Offset Plant & Equipment – Plant Purchases

17,000

(17,000)

0

528-11403-7723-0000

Expense Offset Plant & Equipment – Plant Purchases

0

28,000

28,000

528-11404-7723-0000

Expense Offset Plant & Equipment – Plant Purchases

95,000

(95,000)

0

528-11404-7723-0000

Expense Offset Plant & Equipment – Plant Purchases

95,000

(95,000)

0

528-11404-7723-0000

Expense Offset Plant & Equipment – Plant Purchases

85,000

(85,000)

0

528-11401-7723-0000

Expense Offset Plant & Equipment – Transport Workshop

31,000

(31,000)

0

528-11401-7723-0000

Expense Offset Plant & Equipment – Transport Workshop

0

20,000

20,000

Reserves

 

 

 

 

100-9103

Transfer From Reserve – Airport Infrastructure Renewal

21,000

(21,000)

0

121-9103

Transfer From Reserve – Waste Management Facilities & Plant

800,000

(800,000)

0

115-9103

Transfer From Reserve – Plant Replacement

12,000

(12,000)

0

115-9103

Transfer From Reserve – Plant Replacement

12,000

(12,000)

0

115-9103

Transfer From Reserve – Plant Replacement

0

28,000

28,000

115-9103

Transfer From Reserve – Plant Replacement

82,500

(82,500)

0

115-9103

Transfer From Reserve – Plant Replacement

82,500

(82,500)

0

115-9103

Transfer From Reserve – Plant Replacement

59,500

(59,500)

0

115-9103

Transfer From Reserve – Plant Replacement

31,000

(31,000)

0

115-9103

Transfer From Reserve – Plant Replacement

0

20,000

20,000

9000-2000

Transfer From Retained Surplus

(21,000)

21,000

0

9000-2000

Transfer From Retained Surplus

(800,000)

800,000

0

9000-2000

Transfer From Retained Surplus

(12,000)

12,000

0

9000-2000

Transfer From Retained Surplus

(12,000)

12,000

0

9000-2000

Transfer From Retained Surplus

0

(28,000)

(28,000)

9000-2000

Transfer From Retained Surplus

(82,500)

82,500

0

9000-2000

Transfer From Retained Surplus

(82,500)

82,500

0

9000-2000

Transfer From Retained Surplus

(59,500)

59,500

0

9000-2000

Transfer From Retained Surplus

(31,000)

31,000

0

9000-2000

Transfer From Retained Surplus

0

(20,000)

(20,000)

 Net Total 

$73,366

-$73,366

$0

 

EXECUTIVE SUMMARY

This report seeks recommendation of the Finance Committee to Council for the approval of budget amendments as detailed in this report. Adoption of the officer recommendation will result in a $0 effect on the City’s net current position, recognising that the closing balance in three reserves will be net better off by $1,052,500.

BACKGROUND

Council adopted its 2019/2020 municipal budget on Wednesday 31 July 2019 with a balanced budget position. Since this time, Council has been advised of certain expense changes that have impacted the original budget. The Finance Committee is now being asked to consider recommending to Council a budget amendment for the following item:

·    2019/20 fleet capital acquisitions.

OFFICER COMMENT

The majority of the discrepancies are due to carryover timing issues that were inadvertently included when the budget was uploaded.  Explanations for each item numbered above is provided below:

1.    Airport Mower - this mower has low hours and will be re-scheduled for changeover at a time to be determined, dependent on requirements for the site given the upgrades to the airport to be undertaken this financial year;

2.    Waste Shredder - this was listed as a carryover in the current budget. A reassessment of waste facility requirements has determined that this should be removed from the budget in the short term;

3.    Sand Spreader - this unit is in good condition and was to have been removed from the budget prior to approval and upload, however was inadvertently retained;

4.    Tandem Trailer for Mini Excavator - this unit can be retained for use with the new mini excavator as the dimensions of the new machine are compatible with the specification of the existing trailer;

5.    Parks Outfront Mower - this mower was scheduled for replacement early in the 2020/21 financial year. Replacement of this rough cut mower can be brought forward to the current year and the existing mower provided to the Jarrahwood Community Association for their use in maintaining the public open spaces and reducing the fire risk to the townsite;

6.    Tri-axle side tipping trailer - this was mistakenly listed as a carryover in the current budget. Delivery of the new unit and sale of the old unit was finalised in the 2018/19 financial year;

7.    Tri-axle side tipping trailer-the purchase and delivery of this trailer was completed in the 2018/19 financial year, the sale of the existing trailer was carried over into the current year due to the timing of the auction;

8.    Crew cab light truck - replacement of this light truck has been deferred to the 2020/21 financial year;

9.    GPS units for operational fleet - these units were delivered in 2018/19, however the attendant installation cost was carried over into the current financial year. With the changed rule relating to capitalisation of assets with a value of greater than $5,000, this installation cost will be covered within the existing fleet operating budget as it will fall below this threshold;

10.  High Band Repeater - the City of Busselton's operational fleet currently use a VHF low band licenced frequency for our City (private) two way radios. Although the frequency is still operational, the manufacturers are no longer making the hardware to suit it. To ensure continuity of communications, we are required to install a replacement repeater to the Dunsborough tower in order to prepare for the phase out of the obsolete equipment. The estimated cost to supply and install this equipment is $20,000. The spreadsheet attached details the current budget and the amendments.

A summarised version of the above suggestions are provided in attachment A.

 

Planned Budget Amendment Item

Officers propose that the 2019/2020 adopted budget be amended to reflect the following revenue, expense, current and non-current asset, and reserve funding changes, shown in Table 1.

 

Table 1:

 

Cost Code

Description

Current Budget

Change

Resulting Proposed Amended Budget

Revenue

 

 

 

 

528-11403-1770-0000

Profit on Asset Disposal

(3,000)

3,000

0

528-11403-1770-0000

Profit on Asset Disposal

(5,000)

5,000

0

Expenses

 

 

 

 

528-11151-3550-0000

Loss on Asset Disposal – Airport Operations

(9,000)

9,000

0

528-11151-3551-0000

Written Down Book Value on Disposal – Airport Operations

10,800

(10,800)

0

528-11404-3550-0000

Loss on Asset Disposal – Plant Purchases

(12,500)

12,500

0

528-11404-3551-0000

Written Down Book Value on Disposal – Plant Purchases

13,900

(13,900)

0

528-11404-3550-0000

Loss on Asset Disposal – Plant Purchases

(12,500)

12,500

0

528-11404-3551-0000

Written Down Book Value on Disposal – Plant Purchases

13,900

(13,900)

0

528-11404-3550-0000

Loss on Asset Disposal – Plant Purchases

(25,500)

25,500

0

528-11404-3551-0000

Written Down Book Value on Disposal – Plant Purchases

34,766

(34,766)

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

9000-7054

Cash at Bank – Restricted Funds

(21,000)

21,000

0

9000-7054

Cash at Bank – Restricted Funds

(800,000)

800,000

0

9000-7054

Cash at Bank – Restricted Funds

(12,000)

12,000

0

9000-7054

Cash at Bank – Restricted Funds

(12,000)

12,000

0

9000-7054

Cash at Bank – Restricted Funds

0

(28,000)

(28,000)

9000-7054

Cash at Bank – Restricted Funds

(82,500)

82,500

0

9000-7054

Cash at Bank – Restricted Funds

(82,500)

82,500

0

9000-7054

Cash at Bank – Restricted Funds

(59,500)

59,500

0

9000-7054

Cash at Bank – Restricted Funds

(31,000)

31,000

0

9000-7054

Cash at Bank – Restricted Funds

0

(20,000)

(20,000)

Non-Current Assets

 

 

 

 

528-11151-7723-0000

Expense Offset Plant & Equipment – Airport Operations

30,000

(30,000)

0

528-11402-7723-0000

Expense Offset Plant & Equipment – Plant Purchases

800,000

(800,000)

0

528-11403-7723-0000

Expense Offset Plant & Equipment – Plant Purchases

15,000

(15,000)

0

528-11403-7723-0000

Expense Offset Plant & Equipment – Plant Purchases

17,000

(17,000)

0

528-11403-7723-0000

Expense Offset Plant & Equipment – Plant Purchases

0

28,000

28,000

528-11404-7723-0000

Expense Offset Plant & Equipment – Plant Purchases

95,000

(95,000)

0

528-11404-7723-0000

Expense Offset Plant & Equipment – Plant Purchases

95,000

(95,000)

0

528-11404-7723-0000

Expense Offset Plant & Equipment – Plant Purchases

85,000

(85,000)

0

528-11401-7723-0000

Expense Offset Plant & Equipment – Transport Workshop

31,000

(31,000)

0

528-11401-7723-0000

Expense Offset Plant & Equipment – Transport Workshop

0

20,000

20,000

Reserves

 

 

 

 

100-9103

Transfer From Reserve – Airport Infrastructure Renewal

21,000

(21,000)

0

121-9103

Transfer From Reserve – Waste Management Facilities & Plant

800,000

(800,000)

0

115-9103

Transfer From Reserve – Plant Replacement

12,000

(12,000)

0

115-9103

Transfer From Reserve – Plant Replacement

12,000

(12,000)

0

115-9103

Transfer From Reserve – Plant Replacement

0

28,000

28,000

115-9103

Transfer From Reserve – Plant Replacement

82,500

(82,500)

0

115-9103

Transfer From Reserve – Plant Replacement

82,500

(82,500)

0

115-9103

Transfer From Reserve – Plant Replacement

59,500

(59,500)

0

115-9103

Transfer From Reserve – Plant Replacement

31,000

(31,000)

0

115-9103

Transfer From Reserve – Plant Replacement

0

20,000

20,000

9000-2000

Transfer From Retained Surplus

(21,000)

21,000

0

9000-2000

Transfer From Retained Surplus

(800,000)

800,000

0

9000-2000

Transfer From Retained Surplus

(12,000)

12,000

0

9000-2000

Transfer From Retained Surplus

(12,000)

12,000

0

9000-2000

Transfer From Retained Surplus

0

(28,000)

(28,000)

9000-2000

Transfer From Retained Surplus

(82,500)

82,500

0

9000-2000

Transfer From Retained Surplus

(82,500)

82,500

0

9000-2000

Transfer From Retained Surplus

(59,500)

59,500

0

9000-2000

Transfer From Retained Surplus

(31,000)

31,000

0

9000-2000

Transfer From Retained Surplus

0

(20,000)

(20,000)

 Net Total 

$73,366

-$73,366

$0

Statutory Environment

Section 6.8 of the Local Government Act 1995 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

The financial implications of this recommendation are contained within the report.

Stakeholder Consultation

No external stakeholder consultation was required or undertaken in relation to this matter.

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place.

City officers have considered the risks associated with the delaying of changeovers and the procurement of new plant items. It is the opinion of the officers that this is a manageable risk.

Options

The Council could decide not to go ahead with the proposed budget amendment request.

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.

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.

 


Council

135

11 December 2019

12.5

Attachment a

2019/20 Fleet Capital Acquisition Budget - Amended

 


Council                                                                                      139                                                        11 December 2019

12.6           Meelup Regional Park Committee - 25/11/2019 - MEELUP REGIONAL PARK MANAGEMENT PLAN

STRATEGIC GOAL

STRATEGIC OBJECTIVE

3. ENVIRONMENT Valued, conserved and enjoyed

3.2 Natural areas and habitats are cared for and enhanced for the enjoyment of current and future generations.

SUBJECT INDEX

Meelup Regional Park MR006

BUSINESS UNIT

Environmental Services

REPORTING OFFICER

Environmental Management Coordinator - Greg Simpson

AUTHORISING OFFICER

Director, Planning and Development Services - Paul Needham

NATURE OF DECISION

Executive: substantial direction setting, including adopting strategies, plans and policies (excluding local planning policies), tenders, setting and amending budgets, funding, donations and sponsorships, reviewing committee recommendations

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Current Plan

Attachment b    Draft Plan  

 

This item was considered by the Meelup Regional Park Management Committee at its meeting on 25 November 2019, the recommendations from which have been included in this report.

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

That the Council adopt the Draft Meelup Regional Park Management Plan at Attachment B for the purposes of community consultation.

EXECUTIVE SUMMARY

This report presents a review of Meelup Regional Park Management Plan and Council is asked to consider and endorse the draft Meelup Regional Park Management Plan 2019, for the purposes of further consultation with the community and key stakeholders, prior to development and consideration of the final document.

 

BACKGROUND

The Meelup Regional Park (‘the Park’) Management Plan (‘the Plan’) was last revised and endorsed (resolution C0901/020) by the Council in 2010, and has provided the strategic framework for management of the Park over the past 9 years. The current Plan is provided as Attachment A (‘Current Plan’).  A detailed review of the Current Plan has become necessary to ensure the City continues to manage the Park in a manner in line with community expectations.

 

The review of the Plan has adopted the style of management plans produced by the Department of Biodiversity Conservation and Attractions (DBCA) for conservation-focused reserves elsewhere in Western Australia, and is intended to provide a clear vision for the future management of the Park, for conservation and environmental enhancement and to allow recreation and other uses of the Park to occur, to the extent that they do not impair the conservation values of the Park.

 

The review process has focused on the key management issues for the Park and outlines 31 management objectives and 112 management actions as a response to these key issues. A revised draft Plan is provided as Attachment B (‘Draft Plan’).

 


In order to complete the review of the Plan, it will be necessary to consult with and receive submissions from the community and other key stake holders as may be identified prior to development of the final document, which then requires the consideration and approval of the Minister of Lands.

OFFICER COMMENT

The Draft Plan incorporates the key themes identified in the Current Plan, but in a new format, together with new information relating to the Park.

 

The Draft Plan also includes numerous minor amendments throughout the document, many of which reflect changes to legislation and management practises since 2010. The main amendments incorporated into the Draft Plan are:

 

-      Section 5 ‘Key Values’ includes additional information to describe the Park’s key values.

 

-      Section 8 ‘Strategic Goals’ has been amended to link the Draft Plan to the City’s Strategic Community Plan 2017, and to identify the key strategies within the draft MRPMP that contribute towards the achievement of Community Objective 3.2, in the City’s Strategic Community Plan 2017.

 

-      Section 14 ‘Cross Boundary Management’ has been included as a new section in the Draft Plan.  There are a number of cross boundary issues that require a proactive response and the development of good neighbour relationships, in order to implement appropriate management responses to issues such as resilience of species and ecosystems, environmental water flows, fire, weed and pest control.

 

-      Section15 ‘Compatible Land Management’ is included as a new section in the Draft Plan and considers the potential of remnant bushland reserves located in the vicinity of the Park to contribute towards to the biodiversity in the Park. These reserves are under the care and control of the City and include 3 reserves along Jingarmup Brook within the Eagle Bay townsite, reserve 11316 at the head waters of Jingarmup Brook and reserve 6229 located at the headwaters of Meelup Brook adjacent to Cape Naturaliste Road.  The extension of the Draft Plan management responses to these isolated reserves would be for the purpose of implementing a coordinated approach to issues such as resilience of species and ecosystems, environmental water flows, fire, weed and pest control.

 

-      Section 15 ‘Compatible Land Management’ also includes a proposed management action relating to an unmade section of road reserve which intersects management units 6 and 7 within the Park. This unmade road reserve has good vegetation cover and is unlikely to be become part of the City’s road network. While it is not intended to formally amalgamate the unmade road reserve into the Park (Reserve 21629), a change of use from ‘road’ to ‘conservation and recreation’ may be possible, for consistency of vesting purpose across the Park.

 

-      Section 16 ‘Ngari Capes Marine Park’ is included as a new section due to the gazettal of the Ngari Marine Park, June 2012. The preparation of the Draft Plan has been cognisant of the management arrangements for the Ngari Capes Marine Park, and the management issues that are likely to require inter-agency liaison and a complementary and consistent management approach such as the onshore location and maintenance of regulatory and interpretive signage.


-      Section 19 ‘Climate’ has been expanded to include potential issues that may be attributed to a changing climate, particularly the current trend of reduced rainfall, stream flow and increased average annual temperature. The Draft Plan proposes several management actions including the implementation of adaptive responses, which focus on improving the resilience of species and ecosystems to help reduce vulnerability to climate change.

 

-      Section 20 ‘Geology, Rocks, Landforms and Soils’ has been updated to include additional information and detailed mapping of the geology of the Park.

Statutory Environment

The Park is Reserve 21629 and is Crown Land over which the City has a management order. The reserve purpose is ‘Conservation and Recreation’. The City has power to lease over the reserve, for a maximum period of 21 years and subject to the approval of the Minister for Lands (or their delegate), provided that any such lease is consistent with the reserve purpose. It is an ‘A-Class’ reserve, which means that any change to the management order requires Parliamentary consent.

 

Under the Land Administration Act (the LA Act) the Minister for Lands may place by way of a management order the care, control and management of a reserve with a management body. A management order for the purpose of ‘conservation and recreation’, has been placed with the City.

Under section 49 of the LA Act the City may submit to the Minister for Lands for his or her approval, a plan for the development management and use of the Park for the purpose of the management order.

Relevant Plans and Policies

Preparation of reserve management plans is supported by the City’s Environment Strategy, under strategic action 1.1 – ‘continue to develop and review management plans for natural areas, including the application of fire management’.

 

Financial Implications

Financial implications associated with this report relate only to the advertising and consultation on the Draft Plan.

Stakeholder Consultation

A working group comprising members of the Meelup Regional Park Management Committee and City staff have been involved in developing the Draft Plan over the past 2 years. This working group has endeavoured to include within the Draft Plan, the necessary strategic and operational management guidance considered appropriate for the long term management of the Park. 

Subject to Council supporting the officer recommendation, it is proposed that consultation occur, including a media release; community information session to be coordinated (and advertised) during the consultation period; and consultation with other key stakeholders as may be identified. The Draft Plan would then need to be re-considered by the Council in light of any submissions received prior to its subsequent determination and forwarding for consideration to the Minister for Lands.

Risk Assessment

No risks of a medium or greater level have been identified.

 


 

Options

The Council may resolve not to support the officer recommendations to endorse the draft MRPMP for the purpose of community and stakeholder consultation or may amend draft MRPMP prior to its endorsement for consultation purposes.

CONCLUSION

Undoubtedly one of the most striking characteristics of the Park is its scenic beauty with views of the ocean, the spectacular coastline and natural landscape. These scenic and physical features are central to all other elements that contribute to the character of the Park.

By reviewing the Plan, the City will renew and reinforce its commitment to protecting its natural environment, as an environmentally responsible and progressive organisation and ensure the City continues to manage the Park in a manner in line with community expectations.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

It is envisaged that implementation of the officer recommendation to commence consultation with the community and stakeholders on the draft MRPMP would commence immediately following Council supporting the officer recommendation, with the finalised review of the draft MRPMP to be completed and a further report presented to the Council by the end of the 2019 calendar year.

 


Council

141

11 December 2019

12.6

Attachment a

Current Plan

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 



 



 


 


 


 


 


 


 




 




 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


Council

276

11 December 2019

12.6

Attachment b

Draft Plan

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



 


 



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



 


 



 

 

 


Council                                                                                      357                                                        11 December 2019

13.             Planning and Development Services Report

13.1           DRAFT ENERGY STRATEGY

STRATEGIC GOAL

STRATEGIC OBJECTIVE

3. ENVIRONMENT Valued, conserved and enjoyed

3.4 Climate change risks and impacts are understood, acknowledged and responded to through appropriate planning and community education.

SUBJECT INDEX

Environmental Projects and Programmes

BUSINESS UNIT

Environmental Services

REPORTING OFFICER

Senior Sustainability/Environment Officer - Mathilde Breton

AUTHORISING OFFICER

Director, Planning and Development Services - Paul Needham

NATURE OF DECISION

Executive: substantial direction setting, including adopting strategies, plans and policies (excluding local planning policies), tenders, setting and amending budgets, funding, donations and sponsorships, reviewing committee recommendations

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Energy Strategy

Attachment b    Energy Strategy Summary Document

Attachment c    Cities for Power Partnership - The Partnership Action Pledge  

                                                              

OFFICER RECOMMENDATION

That the Council:

1.         Endorse the City of Busselton Energy Strategy (Attachment A); and

2.         In accordance with our membership of the Climate Power Partnership (CPP) and as set out in the Energy Strategy, make the following CPP Pledges:

(a)       Install renewable energy (solar PV and battery storage) on City buildings.

(b)       Set targets to increase the level of renewable power for City operations over time.

(c)       Pursue development of a mid-scale solar farm.

(d)       Identify opportunities to turn waste into energy.

(e)       Roll out energy efficient lighting for City-owned public lighting.

 

EXECUTIVE SUMMARY

This report seeks endorsement of an Energy Strategy (‘Strategy’). The Strategy is intended to provide the City with strategic direction on how to optimise energy usage efficiency and increase the uptake of renewable energy in order to reduce the City’s operational carbon emissions and future proof the organisation against rising energy prices. The report also recommends the endorsement of five pledges to meet the City’s commitments under the Cities for Power Partnership program.

 

BACKGROUND

The City has been actively working toward reducing its energy use and carbon emissions for the last decade, through participation in the now defunct Cities for Climate Protection program, which comprised the monitoring and reporting of carbon emissions and the preparation of Energy Action Plans (EAPs). The EAPs guided a range of earlier energy generation and efficiency initiatives, including some rooftop solar rollout, GLC geothermal project and some efficiency initiatives. While good progress was made, not all recommended initiatives were implemented. This reflects the constantly changing nature of energy management and barriers in achieving organisational change.

 

In mid-2017, the Council expressed a desire to strengthen its effort to reduce its energy use and increase its uptake of renewable energy, which led to the requirement to prepare an Energy Master Plan (EMP). The EMP was to determine direction for the organisation towards achieving real savings in all energy sources.

 

In December 2017, Council endorsed the allocation of funding as follows:

 

The $75,000 to be allocated out of the Strategic Projects Reserve is proposed to be allocated as additional expenditure as follows –

1.    $26,500 as additional salaries expenditure in Environmental Management, allowing for the allocation of an existing officer in that team;

2.    $45,000 as additional consultancy budget in Environmental Management, allowing for the contracting of specialist professional services to assist with the project; and

3.    $3,500 to complete the ‘Enquiry’ phase of the Western Power process associated with potential development of a mid-scale (approximately 6.0 MW) solar project on City land, being portion of the former Rendezvous Road (Busselton) Refuse Disposal facility, the further pursuance of which would potentially be explored as part of the Energy Master Plan process.

In parallel with preparing the Strategy, the City provided in principle support for joining the Cities for Power Partnership in September 2018. This program is focused on the leading role of local government in climate action, and provides an avenue for information access, sharing experiences, networking, collaboration and celebrating success. The main commitment of the CPP program is to identify, within six months, five items included in the CPP Pledge that the City of Busselton will strive to achieve. The pledges are required to be endorsed by Council. The Council was briefed on the CPP on 3 October 2018, and it was decided to include the adoption of the CPP pledges as part of the preparation of the Energy Master Plan.

OFFICER COMMENT

The Strategy was developed over the last couple of years, with the main drivers being a desire to address climate change, forecasted to severely impact the south west of Western Australia and the financial incentive of decreasing energy consumption as costs of electricity and fuels continue to increase and payback periods for efficiency measures and behind-the-meter renewables are decreasing.

 

The Strategy was developed under the guidance of the City’s Sustainability and Energy Working Group (SEWG), comprised of Councillors and City staff. The process has created a greater understanding of the organisation’s energy issues and opportunities for efficiency and cost-savings. The strategy aims is to embed energy management within the City’s organisational culture, optimising energy use and uptake of renewable energy.

 

It is proposed to rename the Energy Master Plan to an ‘Energy Strategy’ to reflect the high level and strategic nature of the document. Energy management has become a very complex and dynamic space, with technologies and best practice rapidly changing. One of greatest challenges will be to respond to this constant state of flux and embrace new opportunities as they arise. It is considered a Strategy is more likely to respond to this challenge than a more detailed, less adaptable Master Plan.

 

Draft Vision and Targets

More and more organisations, councils, states, businesses and countries are setting ambitious renewable energy and carbon emission reduction targets to demonstrate their commitment and leadership to tackling climate change. The Strategy incorporates a vision statement and targets which were workshopped and endorsed by the SEWG and are as follows:

 


 

Draft Vision:

Minimised energy costs and greenhouse gas emissions, through using energy as efficiently as possible and optimising our approach to generation and use of renewable energy, and to maximise returns to ratepayers through becoming a net energy generator.

 

Draft Targets:

1.    To generate 100% of the City of Busselton electricity needs from renewable sources by 2030.

 

The global standard for leadership in climate change action is 100% renewable energy. While there is no official definition of what a 100% renewable energy target means, it is usually interpreted as when the amount of renewable energy produced is equal to or more than what is consumed. The City would still be connected to the electricity grid as the intent is not to match current energy consumption with real time renewable energy supply, but using a concept called ‘net use accounting’ to balance yearly energy consumption by an equal amount of renewable energy generation. The proposed target however specify that the renewable energy needs to be generated on site (i.e. within the City of Busselton).

 

As per the proposed Vision, this target will be achieved through reducing energy use, improving energy efficiency and increasing the uptake of renewable energy, in particular solar energy. The proposed project to build a mid-scale solar plant on the Rendezvous Road site which would cater for all and more of the City’s operational electricity needs is key to meeting this target. Should this project not go ahead, the City may need to review the wording of its renewable energy target to allow the purchase of renewable energy produced off site through government accredited GreenPower, LGCs or Power Purchase Agreements (PPAs).

 

2.    To reduce City of Busselton corporate carbon emissions per capita to 50% on 2017/18 levels by 2030.

The City also has the desire to reduce its operational carbon emissions to achieve environmental outcomes and mitigate the impacts of climate change. A carbon emission reduction target also captures any progress made in other energy-related emissions such as transport fuels from fleet and plant and from waste deposited in landfill.

 

A per capita reduction target is recommended to accommodate the City’s ongoing growth, with increasing associated facilities and services, which in turn use increased energy and produce higher emissions. The 2017/18 baseline was chosen to reflect when the new City Administration Centre was completed and to allow comparison with future years.

 

Previous energy inventories have estimated electricity related emissions for all contestable sites to be approximately 33% of all City’s carbon emissions. A switch to 100% renewable electricity with the proposed construction of a mid-scale solar farm (in addition to further energy efficiency upgrades and increased rooftop solar uptake) should bring the City’s electricity related emissions of contestable sites to zero. We can also expect reductions in non-contestable sites (approximately 8% of City’s emissions) through energy efficiency upgrades and increased rooftop solar uptake. Overtime the Western Power owned street lighting portfolio which represents approximately 17.5% of the City’s emissions will also become more energy efficient with the progressive installation of LEDs.

 

Fleet related emissions have been estimated to be approximately 27% of all City’s emissions and we can expect some improvements over the next 10 years with the uptake of Electric Vehicles and alternative fuels for heavy plant. The increasing recycling trend and removing organics from the waste stream will also drive down waste-related emissions which have been estimated to be approximately 14% of City’s emissions (from City’s facilities only).

 

These improvements coupled with any reductions in emissions intensity of electricity production (driven by the Federal Government carbon emissions and renewable energy targets) should allow the City to achieve a 50% per capita emissions reduction by 2030. The proposed City’s target is also in line with the Federal Government current climate change target of 26-28% emissions reduction on 2005 levels by 2030, which represents a 50-52% reduction in emissions per capita between 2005 and 2030.

 

While more and more governments are moving to zero net emissions targets, including the WA Government, the City still has an ongoing reliance on fossil fuels for fleet and plant, limited control on street lighting and significant emissions from legacy waste disposal. The suitability of a zero net emission target will need to be reviewed and may be suitable for the next phase of the Strategy.

 

3.    Develop efficiency targets for fleet and plant by 2025

 

It is still considered too premature to set specific targets for the Fleet and Plant sector. This will need to be reviewed once we have a more thorough understanding of feasible options and as new technologies continue to emerge. A possible fleet reduction target could be a vehicle emissions intensity target (CO2e/km) or the uptake of electric vehicles over time. In the meantime any reductions in fleet energy use will be reflected in the overall carbon emissions reduction target.

 

Scope and Focus Areas

The scope of the Strategy is restricted to the City’s operations and services and divided into the following four streams:

 

- Stationary use (electricity and gas)

- Street lighting

- Waste (restricted to landfill gas emissions and waste-related energy generation)

- Fleet and plant

 

The following 10 focus areas, with associated objectives have been identified in the Strategy:

-      Monitoring and reporting

-      Efficiency upgrades to facilities

-      Leased sites

-      Design/procurement for new facilities

-      Public lighting

-      Rooftop solar

-      Mid-scale solar

-      Waste

-      Mobile energy (fleet and plant)

-      Behavioural and organisational change

Key recommendations

Each Focus Area has associated strategic actions which are recommended to be implemented. There are 52 strategic actions listed in the Strategy. The following are some of the key initiatives recommended to be implemented:

1.    An integrated energy monitoring and reporting system, which allows us to dynamically and proactively manage energy use from the City’s facilities, public lighting and water pumping and renewable energy generation including solar energy across the organisation.

2.    208kW of solar PV Systems, including 100kW at the Geographe Leisure Centre, 40kW at the Naturaliste Community Centre, 40kW at the Busselton Library and 28kW at the Depot and installation of batteries when financially viable.

3.    A mid-scale solar farm at Lot 27 Rendezvous Road, to allow the City to reach its 100% renewables target.

4.    Strategic energy efficiency upgrades at large facilities as recommended by the ‘Energy Opportunities Analysis and Prioritisation’ report (Yeoman 2018).

5.    A Design for New Buildings Policy, which specifies minimum energy efficiency and renewable energy generations for all new City’s facilities.

6.    LED upgrades of high priority City-owned streetlighting, sporting facilities and Public Open Space.

7.    Investigations into multiple resources recovery systems through the South West Regional Waste Group.

8.    Move towards more electrically operated fleet, plant and equipment as technologies mature and the price of energy storage decreases, starting with the purchase of a plug-in hybrid electric vehicle (EV).

9.    Viability assessments of alternative fuel sources to power the City’s fleet, plant and equipment.

10.  A watching brief of new and innovative technologies including microgrids, virtual net metering and peer to peer energy trading.

The full list of recommendations is available on page 7-9 of the Strategy (Attachment A). A summary document has also been prepared to assist with communication (Attachment B).

 

Other work

Implementation of actions likely to be included in the Strategy has been progressing in parallel with development of the document. More specifically the following initiatives were progressed over the last 18 months:

 

1.    Joining of the ‘Azility’ (previously Planet ‘Footprint’) online platform which allows for more detailed and accessible reports on energy use at City facilities;

2.    Rendezvous Road mid-scale solar project investigations;

3.    Sub-metering and data-logging at the GLC; and

4.    Installation of additional rooftop solar PV at the Administration Building.

 

Energy Strategy implementation

Implementation of energy initiatives is a whole of organisation responsibility. While there will often be a leading Directorate/Service Unit responsible for implementing specific actions, collaboration and partnerships across the organisation will be required to implement the Energy Strategy. Leadership from Senior Management will also be necessary to drive implementation of the Strategy. The SEWG was instrumental in developing the Strategy. It is recommended the group continues to regularly review and monitor implementation.

The City Environment Policy and Sustainable Work Practice Operational Practice and Procedure provides the overarching planning framework for implementing the Strategy. A key element for the City to successfully manage its energy portfolio will be to build in relevant responsibilities and associated accountability amongst Senior Management and operational staff and for energy optimisation to become part of the City’s organisational culture.

 

It is essential implementation of the Strategy is built into the City’s existing strategic planning cycle. More detailed yearly action planning will be required to progress with implementation. This will include allocating responsibilities for implementation to relevant staff.

 

The Strategy will be annually updated and fully reviewed every five years. However this is a dynamic document that will need to proactively respond to rapidly changing technologies and what constitutes best practice.

 

Further information on how the implementation of the Strategy is proposed to be funded is detailed in the Financial Implications section of this report. 

 

Energy Reporting

An integrated energy monitoring and reporting process is currently being progressed through the Azility online platform and the sub-metering and data-logging work undertaken at key facilities. While some energy initiatives are proposed to be implemented this financial year, in particular a significant increase in solar energy, it is not guaranteed that the savings achieved will be higher than anticipated growth, including additional services such as street lighting and rubbish collection to cater for population growth but also new services and facilities such as the BEACH project. The Strategy will be implemented over the next five years and higher savings will be achieved over a longer time frame than this financial year.

 

CPP Pledges

The City provided in principle support for joining the Cities for Power Partnership in September 2018. This program is focused on the leading role of local government in climate action, and provides an avenue for information access, sharing experiences, networking, collaboration and celebrating success. The Cities Power partnership program includes an action pledge whereby participating councils select five key actions ranging from renewable energy, efficiency, transport and advocacy within six months of joining. Attachment C provides the complete list.

 

Recommended pledges for the City of Busselton are as follows:

1)    Install renewable energy (solar PV and battery storage) on City buildings.

2)    Set targets to increase the level of renewable power for City operations over time.

3)    Pursue development of a mid-scale solar farm.

4)    Identify opportunities to turn waste into energy

5)    Roll out energy efficient lighting for City-owned public lighting

 

These have emerged from the Strategy and will be progressed as part of its implementation.

Statutory Environment

The officer recommendation supports the general function of a local government under the Local Government Act 1995 to provide for the good government of persons in its district.

 


 

Relevant Plans and Policies

The following Plans and Policies are relevant to the Strategy:

1.         Environment Policy

The City’s Environment Policy states that (5.6) The City will plan, design, operate and conduct operations in a manner that minimises waste and resource consumption.

2.         Environment Strategy 2016-2021

The City’s Environment Strategy calls for An empowered local community and organisation that strive for an environmentally sustainable future, for all, and in perpetuity (Environmental Sustainability Key Area).

3.         Energy Action Plans 2014/2019

The Strategy builds on previous achievements and learnings from the Energy Action Plan.

Financial Implications

As part of the annual planning for implementation of the Strategy, City staff will be required to give consideration to budgeting requirements. Several sections of the existing budget can currently accommodate most of the strategic actions listed in the Strategy. In many instances it will be a matter of incorporating and prioritising energy considerations into current work programs. 

 

In addition, there is currently $100,000 (plus indexation) per annum allocated in an Energy Sustainability Reserve in the City’s 10-year Long Term Financial Plan to implement sustainability projects.

 

Where possible grant funding will be accessed to implement the Strategy. A project is more likely to be grant funded if it seeks to use new and innovative technologies.

 

A Revolving Energy Fund (REF) is when savings from sustainability projects are tracked and used to replenish a fund for the next round of investments. Robust energy monitoring systems are required for REFs to be successful. It is not currently recommended the City establishes a REF until an integrated monitoring system is established and operating well.

 

While energy efficient equipment and assets can be more expensive upfront, they usually have a lower life-cycle costs and can provide other business benefits. Consideration should be given to increasing capital expenditure, either through budgeting or through using alternative financing options (including borrowing and other third party financing arrangements such as leasing, on-bill financing and Energy Performance Contracts) to enable the implementation of projects with lower life cycle costs.

Stakeholder Consultation

Draft Energy Strategy

The Council established a Sustainability and Energy Working Group (SEWG) to guide the development of the Strategy. SEWG membership is currently as follows:

 

·    Cr Barrett-Lennard (previously Cr McCallum);

·    Cr Paine; and

·    Staff from Strategic Planning, Environmental Management, Waste & Fleet, Major Projects & Facilities, Community Services, Financial Services and Legal & Property Services business units.


 

The SEWG undertook an analysis of current energy use across City assets to gain a better understanding of energy issues and opportunities, and the subsequent identification of potential projects so that the City may achieve ongoing savings in energy use, costs and greenhouse gas emissions. It reviewed and endorsed the proposed vision, targets, objectives and strategic actions of the Strategy.

 

Council briefings on the EMP process have occurred on the following dates -

·    3 October 2018;

·    26 June 2019; and

·    20 November 2019

The focus has been on developing a greater understanding of energy issues and opportunities, and a greater capacity for the organisation to achieve ongoing savings in energy use, costs and greenhouse gas emissions, rather than the development of a document per se. Significant effort was put towards bringing operational staff, Senior Management and Council along the journey of developing the Strategy and achieve greater buy-in and commitment. This has resulted in additional consultation with staff and senior management when developing the Strategy.

 

CPP Pledges

The Council was briefed on the CPP program on 3 October 2018. The SEWG at its 6 February 2019 meeting supported the recommended pledges for CPP.

Risk Assessment

No risks of a medium or greater level have been identified.

Options

As an alternative to the proposed recommendation the Council could:

1.    Amend the Strategy

2.    Select different CPP pledges;

3.    Not endorse the Strategy and/or the CPP pledges.

 

If the CPP pledges are not endorsed by Council, the City may be required to withdraw from the program.

CONCLUSION

The process of developing the Strategy has generated a greater understanding of the City’s energy issues and opportunities, and a greater capacity for the organisation to achieve ongoing savings in energy use, costs and greenhouse gas emissions. The strategy provides a starting point for improved energy management, and changes to culture around energy use across the organisation.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Once the Strategy is endorsed, it will be made publicly available and promoted before the end of January 2020 (to avoid the Christmas period). Once the CPP pledges are endorsed by Council, the CPP Program will be advised within 21 days.


Council

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11 December 2019

13.1

Attachment a

Energy Strategy

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



 


 


 


 


 


 


 


 



 


 


 


 


 


Council

438

11 December 2019

13.1

Attachment b

Energy Strategy Summary Document

 


 


Council

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11 December 2019

13.1

Attachment c

Cities for Power Partnership - The Partnership Action Pledge

 


 


 


 


Council                                                                                      449                                                        11 December 2019

13.2           DRAFT DUNSBOROUGH LAKES STRUCTURE PLAN - LOT 9050 CLUBHOUSE DRIVE, DUNSBOROUGH LAKES - CONSIDERATION FOR FINAL APPROVAL

STRATEGIC GOAL

2. PLACE AND SPACES Vibrant, attractive, affordable

STRATEGIC OBJECTIVE

2.1 Planning strategies that foster the development of healthy neighbourhoods that meet our needs as we grow.

SUBJECT INDEX

Structure Plans

BUSINESS UNIT

Strategic Planning

REPORTING OFFICER

Principal Strategic Planner - Louise Koroveshi

AUTHORISING OFFICER

Director, Planning and Development Services - Paul Needham

NATURE OF DECISION

Legislative: to adopt legislative documents e.g. local laws, local planning schemes, local planning policies

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Endorsed Dunsborough Lakes Structure Plan

Attachment b    Location Plan

Attachment c    Proposed modifications relating to Lot 9050 Clubhouse Drive

Attachment d   Schedule of Submissions

Attachment e    Lot 9050 Clubhouse Drive & Lot 5000 Waterville Road

Attachment f    Schedule of Modifications  

 

OFFICER RECOMMENDATION

That the Council:

1.      Pursuant to Schedule 2, Part 4 of the Planning and Development (Local Planning Schemes) Regulations 2015, adopts the draft Dunsborough Lakes Structure Plan for final approval subject to the changes included in the Schedule of Modifications at Attachment F.

2.      Pursuant to Schedule 2, regulation 19 of the Planning and Development (Local Planning Schemes) Regulations 2015, resolves to endorse the Schedule of Submissions at Attachment D prepared in response to the public consultation undertaken in relation to this draft Structure Plan.

3.      Pursuant to Schedule 2, regulation 20 of the Planning and Development (Local Planning Schemes) Regulations 2015 requires that a report on the draft Structure Plan be provided to the Western Australian Planning Commission within the timeframe agreed with the Commission.

4.      Pursuant to Schedule 2, regulations 22 and 23 of the Planning and Development (Local Planning Schemes) Regulations 2015, should the WAPC require modifications be made to the draft Structure Plan, these modifications are to be undertaken accordingly, on behalf of the Council, unless they are considered by officers to be likely to significantly affect the purpose and intent of the draft Structure Plan, in which case the matter shall be formally referred back to the Council for assessment and determination.

 

EXECUTIVE SUMMARY

The Council is requested to consider adopting for final approval proposed modifications to the endorsed Dunsborough Lakes Structure Plan as it relates to Lot 9050 Clubhouse Drive, Dunsborough Lakes. The key modification proposed is changing the land use designation for the western portion of Lot 9050 from ‘Tourism’ to ‘Residential R20/R40’.

 

Advertising of the draft Structure Plan resulted in six external agency and three public submissions. The public submissions included two objections and matters raised focussed on perceived loss of amenity, property devaluation and access arrangements.

 

Officers are recommending that the proposed Dunsborough Lakes Structure Plan be adopted for final approval, in accordance with recommended modifications, and referred to the WA Planning Commission for endorsement.

 

BACKGROUND

The proposal comprises modifications to the endorsed Dunsborough Lakes Structure Plan as it relates to Lot 9050 Clubhouse Drive, Dunsborough Lakes (Attachment A). Lot 9050, located in the northern part of the Dunsborough Lakes Estate, is 4.35ha and forms part of the Dunsborough Lakes Golf Course (Attachment B). Located within the subject land are the clubrooms, pro-shop, tavern, carpark, driving range and the 1st tee/fairway.

 

The subject land is zoned ‘Special Use 24 (Dunsborough Lakes Development Area)’ and is within Special Provision Area 42, pursuant to Local Planning Scheme 21. Land use designations are guided by the endorsed Structure Plan for Dunsborough Lakes and Lot 9050 is identified therein for ‘Tourism’ purposes.

 

The proposed modifications to the Dunsborough Lakes Structure Plan in relation to Lot 9050 are described below –

 

·    Replacing 2.9ha of land allocated to ‘Tourism’ with Residential R20/R40. 

·    Amending the boundary of Local Development Plan 1 (LDP1) to only include the land designated ‘Tourism’ in order to facilitate an integrated planning outcome with adjoining tourism land within Lot 5000 Waterville Road. The amount of land allocated for ‘Tourism’ purposes within the Dunsborough Lakes Structure Plan area resulting from proposed modifications would be reduced from approximately 4.7ha to 1.8ha.

·    Introducing two new conditions to Part One of the Structure Plan report that provide for a residential density plan to be prepared at subdivision stage and matters to be addressed by a local development plan for LDP 1 (maintenance of access arrangements and development to provide a suitable interface with adjoining residential land, the golf course and Clubhouse Drive).

·    Updating the development and POS summary tables on the Structure Plan to reflect land use and area changes.

 

The proposed modifications to Lot 9050 are illustrated at Attachment C. Due to the modifications proposed to the Structure Plan, the 1st tee/fairway of the golf course will require reconfiguration and this is also reflected on the draft Structure Plan.

 

Technical Assessments

 

The Structure Plan proposal is supported by the following technical assessments:

 

1.    Engineering and Servicing Review – Pippin Civil Engineering

2.    Economic Tourism Study – Urbis

3.    Local Water Management Strategy - Calibre

 

The main findings of the technical assessments are summarised below under appropriate subheadings.

 

 

Engineering and Servicing Review

The report provides details regarding hydrology/groundwater, geotechnical/ASS, roads, stormwater management, earthworks and services (i.e. reticulated water, sewer and power). The report concludes that there are no identified constraints to the servicing and use of the land for the uses proposed.

 

Economic Tourism Study

The Economic Tourism Study assessed the potential for the development of short stay accommodation within Lot 9050 Clubhouse Drive. The main findings of the study are summarised below.

 

The South West is a popular tourism destination, however the location of the subject land may not be ideal for the development of short stay accommodation, with contributing factors cited as distance from retail and/or beach amenities and competition from existing tourism accommodation providers within Dunsborough itself (including holiday homes).

 

A review of tourism trends found that golf tourism may be negatively affected by declining levels of golf membership across Western Australia and golf visitors (persons playing golf while on holiday).

 

A current and forecast oversupply of short stay accommodation rooms is identified, with average occupancy rates considered unlikely to increase to a level that would encourage investment in new tourist accommodation. Long term prospects may improve and the proposed reduced site area for tourism purposes could still accommodate a sizable development.

 

Local Water Management Strategy

A Local Water Management Strategy (LWMS) was previously prepared for the whole of the undeveloped portions of Dunsborough Lakes as part of an overall review of the endorsed Dunsborough Lakes Structure Plan undertaken in 2012. The LWMS has been progressively updated to reflect various modifications to the Structure Plan that have occurred since 2012.

 

The treatment and attenuation of minor storm events (1:1yr) is proposed to be achieved with on-site retention within individual lots, bio-retention areas through a combination of rain gardens and drainage swales/basins and infiltration areas within road reserves. A portion of any 1:5yr storm event could also be detained within the 1:1yr infrastructure. Overflow from 1:5yr and 1:100yr events is proposed to be piped to the constructed lake system within the golf course and eventually discharged into Toby Inlet.

 

OFFICER COMMENT

The rationale for the proposal is to facilitate an application to the WA Planning Commission for a super lot subdivision of Lot 9050 Clubhouse Drive, Dunsborough Lakes into two lots. The creation of the additional lot for future residential subdivision and development would provide the Dunsborough Lakes Golf Club with an opportunity to sell the land and thereby secure funds to assist with the future economic sustainability of the club, and upgrade the existing club facilities on the remaining tourist component. The proposal is important for the financial planning of the Club, and would also benefit the community by helping to retain a viable and sustainable golf club and golf course (which, in itself, is somewhat of an entry statement into the Dunsborough townsite).

 

The proposed Residential R20/R40 component would enable additional land within the Dunsborough Lakes Structure Plan area to be developed for residential purposes in close proximity to the Dunsborough Town Centre and community facilities, consistent with the relevant strategic planning framework.  

 


Information provided in support of the proposal identifies a forecast oversupply of tourism accommodation in Dunsborough and this, combined with other factors (competition from holiday homes/Airbnb and financial constraints imposed by lending institutes for tourism investment) would suggest that a reduction in the amount of land allocated for tourism purposes should be supported.

 

Whilst there is a proposed reduction in the amount of land allocated for tourism, there remains the opportunity for tourism-related land uses to be developed within Lot 9050 and in a coordinated manner with the adjoining tourism land within Lot 5000 Waterville Road. Should longer-term prospects improve, the land area allocated for tourism purposes could accommodate a sizable development.

Statutory Environment

The key components of the statutory environment for the proposal are set out in the City of Busselton Local Planning Scheme No. 21 and the Planning and Development (Local Planning Schemes) Regulations 2015. Each is discussed below under appropriate subheadings.

 

City of Busselton Local Planning Scheme No. 21

The proposal is considered to be generally consistent with the objectives and policies of the Residential zone under LPS21 in that it is providing the opportunity for a diversity of housing stock, efficient use of land and is in a location that is well serviced and environmentally suitable.

 

Planning and Development (Local Planning Schemes) Regulations 2015

The Regulations came into operational effect on 19 October 2015 and introduced ‘deemed provisions’ for the preparation, advertising and approval of structure plans. The deemed provisions are adopted into LPS21 and define the process for receiving and assessing proposed structure plans and/or modifications to same. Local governments are to have ‘due regard’ to approved structure plans when making decisions relating to subdivision and development.

Relevant Plans and Policies

The key plans and policies most relevant to the proposal include: State Planning Policy 3 – Urban Growth and Settlement (2006); State Planning Policy 3.7 – Planning in Bushfire Prone Areas (2015); Liveable Neighbourhoods (2009/draft 2015); the City of Busselton Draft Local Planning Strategy (2016); and the Dunsborough Lakes Structure Plan (2019). Each is discussed under appropriate subheadings.

 

State Planning Policy 3 – Urban Growth and Settlement (2006)

The overall intent of SPP3 is to facilitate a sustainable pattern of urban development. A key element in achieving this is the promotion of a sustainable and liveable neighbourhood form which reduces energy, water and travel demand while ensuring safe and convenient access to employment and services, and providing housing choice and affordability. The proposal is not viewed as undermining these principles.

 

State Planning Policy 3.7 – Planning in Bushfire Prone Areas (2015)

SPP3.7 provides the foundation for land use planning to address bushfire risk management in Western Australia. It is used to inform and guide decision-makers, referral agencies and landowners /proponents to help achieve acceptable bushfire protection outcomes. It applies to all higher order strategic planning documents, strategic planning proposals, subdivision and development applications located in bushfire prone areas.

 

The subject land is not within a designated bushfire prone area and SPP3.7 does not apply.

 


Liveable Neighbourhoods (2009/draft 2015)

Liveable Neighbourhoods (LN) is an adopted operational policy of the WAPC to guide structure planning and subdivision of new and large infill urban areas. The relevant provisions of Liveable Neighbourhoods (2015) which is a ‘seriously entertained’ draft policy and, as advised by the Department of Planning, Lands and Heritage, should be referred to in order to provide guidance for the assessment and determination of this proposal.

 

The implementation of applicable elements and the fulfilment of the overall principles of LN would ensure that the development of Dunsborough Lakes occurs in an appropriate manner. Whilst the proposal is strategic in nature (further assessment of finer planning details would occur at Local Development Plan and/or subdivision stage), the land use outcomes proposed are not inconsistent with LN principles.

 

City of Busselton Draft Local Planning Strategy (2016)

The City of Busselton Draft Local Planning Strategy (LPS) sets out the long-term planning direction for the City and provides an overarching, strategic rationale for decisions related to the planning and development of the District. The draft LPS establishes an urban growth area framework that identifies ‘current’ (land that is already zoned and where development is progressing), ‘medium-term’ (not currently zoned or subject to structure planning) and ‘long-term’ (also not currently zoned or subject to structure planning) locations for growth, and for each of the identified medium/long term future growth areas, describes the key issues to be addressed through comprehensive structure planning and rezoning.

 

The subject land is identified as a ‘current urban growth area’ and assessment of the Structure Plan proposal has had due regard to the objectives and recommendations of the draft LPS.

 

Dunsborough Lakes Structure Plan (2019)

The Dunsborough Lakes Structure Plan demonstrates how land will be developed and provides guidance for matters such as: allocation of land uses; residential densities; road networks; public open space; provision of community facilities; and the requirement for Local Development Plans for specific development cells. The proposed modifications relating to Lot 9050 Clubhouse Drive will not materially affect the purpose and intent of the Structure Plan.

Financial Implications

There are no financial implications associated with the Officer Recommendation.

Stakeholder Consultation

The draft Structure Plan was advertised for 28 days ending 30 October 2019 and nine submissions were received (six external agency and three public submissions). A Schedule of Submissions is provided at Attachment D. Two public submissions objected to the draft Structure Plan and whilst the third public submission supported the proposal, matters of concern were raised. The matters raised in the public submissions are summarised below –

 

1.    Loss of amenity (peace, views, expectation that the golf course would remain as the adjacent land use, loss of property value).

2.    Access arrangements and potential impacts if Cabot Close is extended.

3.    Future earthworks and retaining (fill) relative to the adjoining subdivision.

4.    Drainage and the capacity of the existing stormwater management network to manage additional flows generated by future residential development.

 


 

With respect to item 1, it appears that there is an evident misunderstanding that the land adjacent to the Cabot Close properties would remain as part of the golf course and was effectively public open space (POS). This was not the case when the residential subdivision of Cabot Close was developed and subsequently sold, as the current Tourism zoning of the land came into effect in 2011. Furthermore, and importantly, development under the current tourism zoning could be at a higher density and greater impact than what could be possible if the current proposal is ultimately supported.

 

The Dunsborough Lakes golf course is a private recreation facility and not POS. The existing district open space/playing fields (that are in close proximity to Cabot Close) and local parks within Dunsborough Lakes estate that actually constitute POS have been ceded and created as a direct result of residential subdivision.

 

In residential areas, 10% of the gross subdivisible area must ordinarily be provided free of cost and vested in the Crown by the subdivider. In determining the gross subdivisible area, land uses such as government school sites, major regional roads, municipal sites, private recreation facilities and any other non-residential sites, are deducted. The POS contribution within the Dunsborough Lakes estate (including the current residential proposal) is 32.8 hectares or 19.8%. The current proposal does not trigger a requirement for additional POS, however that would not prevent further POS being voluntarily provided as part of future subdivision of the land for residential purposes.

 

With respect to item 2, there are a number of points to consider in relation to the matter of access generally (Attachment E) -

 

i.      Lot 9050 has legal road frontage to both Clubhouse Drive and Cabot Close, but currently has functional vehicle access to Waterville Road through the eastern part of Lot 5000 (via a legal agreement between the Golf Club and the owner of Lot 5000).

ii.     Subdivision of Lot 9050 (to separate proposed Residential and existing Tourism zonings) would retain both legal road frontage and functional vehicle access for the tourism portion, but the residential portion would only have legal road frontage to Cabot Close.

iii.    The WA Planning Commission recently granted conditional subdivision approval for Lot 5000 (WAPC ref: 158368).  The subdivision plan includes a single 15m wide road reserve connecting the tourism portion of Lot 9050 with Waterville Road. The plan does not provide future road connectivity with the proposed residential portion of Lot 9050, but does include a condition requiring that the proposed 15m road reserve provides vehicular access to the Golf Club carpark prior to closure of the current access subject to a legal access agreement.

iv.   There is no certainty that the subdivision of Lot 5000 will occur in accordance with the current approval, nor about when the subdivision approval might be implemented (approvals are valid for four years and may be implemented or renewed or modified, or may simply lapse and require a new application).

v.    It is likely that, should the proposed structure plan modification be supported by the WAPC, as well as a prospective subsequent super lot subdivision application, the residential portion of Lot 9050 will be sold, but again there is no certainty on what any future landowner aspirations might be in terms of residential subdivision design and timing of development.

vi.   Orderly and proper planning would suggest that, despite the inherent uncertainties outlined above, options to potentially facilitate legible access arrangements for Lot 9050 and Lot 5000 should be retained where possible.

 

Local Development Plans (LDP) may be prepared if the local government considers one is required for the purposes of proper and orderly planning (Regulation 47) and must set out details of arrangements to be made for vehicles to access the area covered by an LDP (Regulation 48).

 


 

The endorsed Dunsborough Lakes Structure Plan identifies a number of LDP areas where future detailed guidance is required and ‘LDP 1’ applies to the tourism zoned land. The intent of ‘LDP 1’ is to facilitate and coordinate the orderly and proper planning of future tourism development across the eastern parts of Lots 9050 and 5000.

 

The current proposal includes a new requirement to be included in Part One, section 5 of the Structure Plan report to ensure, amongst other things, that vehicle access to the golf club from Waterville Road is maintained through Lot 5000. Officers are recommending that this requirement is modified to also address vehicle access to the residential portion of Lot 9050 (refer to Attachment F – Schedule of Modifications). 

 

Officers are also recommending including in Part One, section 5 of the Structure Plan report, a new requirement for a LDP over the residential portion of Lot 9050, to read as follows –

 

“27.        Prior to subdivision, a Local Development Plan is required for the residential portion of Lot 9050 and shall be required to address specific design requirements to ensure:

a.    suitable and legible vehicular and pedestrian access arrangements with adjoining residential and tourism zoned land; and

b.    a suitable interface (including consideration of earthworks, fill, retaining and landscaping) relative to adjoining residential and tourism zoned land and the golf course.”

 

With respect to item 3 and 4 raised in the public submissions received, these are normally subdivisional matters, however the above modification would require their consideration prior to subdivision to better inform subdivision design and development outcomes. Regulation 50 of the Planning and Development (Local Planning Schemes) Regulations requires local development plans to be advertised, so there would also be further opportunity for consultation.

 

With respect to item 4 in particular, the Department of Water and Environmental Regulation has advised that stormwater management can be satisfactorily addressed at subsequent planning stages.

Risk Assessment

An assessment of the potential implications of implementing the Officer Recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place. No such risks have been identified.

Options

As an alternative to the proposed recommendation the Council could:

 

1.    To seek further information from the proponent before making a decision.

2.    To decline the adoption of the proposed Structure Plan for reasons to be identified.

 

Officer assessment has not revealed any substantive issue or reasonable grounds that would support any of the above options.

CONCLUSION

Officers are of the view that, generally, the information provided and the proposed Dunsborough Lakes Structure Plan itself are suitable for final approval in accordance with the changes set out in the Schedule of Modifications provided at Attachment F and referral to the WAPC for endorsement.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Implementation of the Officer Recommendation will occur within one month of the date of the decision date.


Council

450

11 December 2019

13.2

Attachment a

Endorsed Dunsborough Lakes Structure Plan

 


Council

451

11 December 2019

13.2

Attachment b

Location Plan

 


Council

452

11 December 2019

13.2

Attachment c

Proposed modifications relating to Lot 9050 Clubhouse Drive

 


Council

458

11 December 2019

13.2

Attachment d

Schedule of Submissions

 


 


 


 


 


 


Council

459

11 December 2019

13.2

Attachment e

Lot 9050 Clubhouse Drive & Lot 5000 Waterville Road

 


Council

460

11 December 2019

13.2

Attachment f

Schedule of Modifications

 

 


Council                                                                                      466                                                        11 December 2019

14.             Engineering and Work Services Report

14.1           RFT 23-19 LOU WESTON COURTS CONSTRUCTION & CIVIL WORKS

STRATEGIC GOAL

2. PLACE AND SPACES Vibrant, attractive, affordable

STRATEGIC OBJECTIVE

2.2 Attractive parks and open spaces that create opportunities for people to come together, socialise and enjoy a range of activities.

SUBJECT INDEX

Tenders

BUSINESS UNIT

Major Projects and Facilities

REPORTING OFFICER

Manager Major Projects and Facilities - Eden Shepherd

AUTHORISING OFFICER

Director, Engineering and Works Services - Oliver Darby

NATURE OF DECISION

Executive: substantial direction setting, including adopting strategies, plans and policies (excluding local planning policies), tenders, setting and amending budgets, funding, donations and sponsorships, reviewing committee recommendations

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   Published Under Separate Cover Confidential RFT23-19 Eval and Reccommendation FINAL 4687397  

 

OFFICER RECOMMENDATION

That the Council:

1.    Pursuant to RFT23-19 Lou Weston Courts Construction & Civil Works, endorse the tender from BCP Contractors Pty Ltd for $657,691.79 (exclusive of GST) as the preferred tenderer.

2.    Delegate power and authority to the Chief Executive Officer to:

a)     Negotiate and agree with the Preferred Tenderer variations in accordance with Regulations 20 and 21A of the Local Government (Functions and General) Regulations 1996 subject to such variations not to exceed the overall project budget;

b)     Negotiate and agree with the Preferred Tenderer the final terms and conditions of the respective contracts (including rates/contract prices); and

3.    Subject to resolutions 2(a) and 2(b), enter into contracts with the Preferred Tenderer for supply of the relevant goods and services.

 

EXECUTIVE SUMMARY

The City’s objectives with this Request For Tender RFT23-19 Lou Weston Courts Construction & Civil Works facility upgrade is to replace the existing courts with twelve (12) new mixed-use outdoor courts.

 

The Scope of Works can be summarised as:

 

·    Demolition of existing courts;

·    Construction of new courts;

·    Supply and installation of courts lighting;

·    Installation of City supplied court posts; and

·    Associated Civil and Electrical works

BACKGROUND

Community and sporting groups have utilised Lou Weston Oval, located at Lot 4539 King Street Busselton for many years. Lou Weston Oval is a three (3) hectare public reserve that is utilised for recreational purposes year round, featuring an active playing field, nine (9) netball courts with limited sports lighting, a club building, a small change room, and a toilet facility.

 

In summer, the active playing fields are utilised by the sport of tee-ball, and in winter by Junior Australian Rules Football, Auskick and Netball. 

 

Basketball has been identified as a future user of the existing netball courts by upgrading and adding 3 additional courts to the existing 9, making six of the 12 courts dual purpose. Little Athletics has been identified as a future user group in summer as there is no Little Athletics club in Busselton. In addition the Busselton Runners Club is interested in making the oval their base and the cycling club is seeking a storage area.

 

In 2013 the City of Busselton Council adopted the Active Open Space Planning Recommendations to guide the future planning of active open space facilities within the district. This followed 18 months of consultation, needs assessments, a review of the City Leisure Services Plan and a demographic analysis of individual population precincts across the City.

 

The facilities were assessed as either Local, District or Regional and the recommendations and designations across the region are detailed within the Active Open Space Planning 2013 document.

 

It was endorsed as part of these recommendations that Lou Weston Oval be designated as a local level facility for active open space sports such as diamond sports (Tee ball) and the club based sport of Netball, and as a future facility for Baseball, and provision be made for local level facilities for junior Australian Rules Football. Since that report and following recent consultation, the identified sports are netball, basketball, junior football and tee ball with the possibility of Little Athletics. The junior football clubs have expressed a need to relocate to Bovell Oval in the future pending the outcome of a strategic recreation strategy which is to commence in September/October 2018.

 

The key facility development strategies for Lou Weston Oval Included:

 

1. That ageing infrastructure at Lou Weston Oval is replaced by considering shared club facilities and rationalisation of ablution facilities including:

 

·    Additional storage;

·    Rationalisation of club rooms, change rooms and toilets at the reserve;

·    Shelter / viewing area for spectators;

·    Installation of sports lighting at the active playing fields and courts.

 

A Needs Assessment has been reviewed for Lou Weston Oval with the preferred outcome being an upgrade to the existing netball courts from 9 courts to 12 courts (to allow for future growth) and to dual purpose six of these courts with basketball.  In addition, replacement of the existing netball pavilion is to be undertaken to include additional storage, male and female change rooms/toilets, change/toilet facilities for disabled and an increased verandah/viewing area.

 

The new facility will be capable of providing training and/or competition facilities for proposed regular users such as the Busselton Tee Ball Association, Country Junior Football Club, Wanderers Junior Football Club, Local Auskick Centre, Busselton Netball Association and Busselton Amateur Basketball Association. It will also provide a facility for Little Athletics.

 

 

OFFICER COMMENT

RFT23-19 Lou Weston Courts Construction & Civil Works was issued as a Public Tender on Saturday 26th October 2019 and closed Tuesday 12th November 2019. The invitation to tender was advertised in the West Australian, on the City’s TenderLink procurement platform. The City received four compliant Tender Responses from the following contractors:

 

·    BCP Contractors Pty Ltd

·    JAK Civil Pty Ltd

·    Leeuwin Civil Pty Ltd

·    West Coast Profilers

 

The City received two non-compliant Tender Responses from the following contractors;

 

•     ERG Electronics Pty Ltd

•     Road Contractors Pty Ltd

 

Assessment Process

In accordance with the City’s procurement practices and procedures tender assessments were carried out by a tender evaluation panel comprising City officers and an independent evaluation panel member with relevant skills and experience. The tender assessment process included:

 

·    Assessing tenders received against relevant compliance criteria. The compliance criteria were not point scored.  Each submission was assessed on a Yes/No basis as to whether each criterion was satisfactorily met. All tenders were deemed compliant.

·    Assessing tenders against the following qualitative criteria:

 

Criteria

Weighting

Relevant Experience

25%

Local benefit

5%

Respondent’s  Capacity and Resources

10%

Demonstrated Understanding

20%

Price

40%

 

A scoring and weighting system was used to assess the tenders against these qualitative criteria.

 

The extent to which a tender demonstrated greater satisfaction of each of the qualitative criteria resulted in a greater score. The tendered prices were then assessed together with the weighted qualitative criteria and the tenders scored and ranked to determine the most advantageous outcome to the City, based on principles of best value for money.  That is, although price was a consideration, the tender containing the lowest price will not necessarily be accepted, nor will the tender ranked the highest on the qualitative criteria.

 

Summary of Assessment Outcomes

The outcome of the evaluation panel’s assessment was as follows:

 

Rank

Company

Summary

1.

BCP Contractors Pty Ltd

Very well structured submission in line with requirements and recommended key submission points. Submission specifically addresses the requirements under the RFT for construction of sporting facility and associated civil works. Opportunities for community engagement throughout the project highlighted, which promotes openness ownership and this will likely be to the benefit of the local community.

2.

Leeuwin Civil Pty Ltd

Information is well structured and basically in line with the requirements and recommended key submission points. However, submission addresses only the basic relevant experience requirements under the RFT by referring to only one sporting facility project. Did only partially address the specific requirements of the RFT criteria.

3.

WCP Civil Pty Ltd

Only partially addresses the specific requirements of the RFT criteria. Provided experience road works, drainage & pathway pavement no listed court base work.

4.

J.A.K Civil Pty Ltd

Poorly structured submission. Not in the recommended format. Not all information points addressed. Submission is generic and barely addresses the requirements under the RFT.

 

 

Statutory Environment

The contract value is greater than $500,000, therefore, in accordance with section 5.43(b) of the Local Government Act 1995 (the Act), read with Delegation 3J, the tender must be accepted by the Council and will require a report to the Council.

 

In terms of section 3.57 of the Act, a local government is required to invite tenders before it enters into a contract of a prescribed kind under which another person is to supply goods and service. Part 4 of the Local Government (Functions and General) Regulations 1996:

 

·    requires that tenders be publicly invited for such contracts where the estimated cost of providing the required goods and/or service exceeds $150,000; and

·    under Regulations 11, 14, 18, 20 and 21A provides the statutory framework for inviting and assessing tenders and awarding contracts pursuant to this process.

With regard to RFT23-19, City officers have complied with abovementioned legislative requirements.

The officer recommendation supports the general function of a local government under the Local Government Act 1995 to provide for the good government of persons in its district.

Relevant Plans and Policies

The City's purchasing policies and its occupational health and safety, asset management and engineering technical standards and specifications were all relevant to RFT23-19, and have been adhered to in the process of requesting and evaluating tenders.

Financial Implications

The project/procurement for the Lois Hannay Pavilion Construction and Lou Weston Courts and Civil Works Construction will be funded as follows:

 

Infrastructure Development Reserve     

$363,400

Community Facilities City District            

$1,000,000

Government Grants CSRFF

$400,000

Busselton Netball Club contribution

$120,000

Total

$1,883,400

 

BCP Contractors Pty Ltd who is recommended for award of the contract has submitted a lump sum Tender price within the City’s approved budget funding.

Stakeholder Consultation

RFT23-19 was advertised in the West Australian newspaper 26th October 2019 and the City of Busselton tenders website (TenderLink) on 25th October 2019. The closing time and date for lodgement of a response was 2.00pm (AWST) on Tuesday 12 November 2019. Officers have undertaken reference checks of the preferred tenderer.

Risk Assessment

An assessment of the potential implications of implementing the Officer's recommendation has been

undertaken using the City's risk assessment framework, with the intention being to identify risks which, following implementation of controls, are identified as medium or greater. There are no such risks identified, with the preferred tenderer assessed as being capable of delivering the services to a suitable service level and in line with the agreed cleaning schedule.

Options

The Council may consider the following alternate options:

 

1)    To award the Tender to an alternative tenderer/s. In the view of the Officers this could result in the Tender being awarded to a Tenderer that is not most advantageous to the City.

2)    To not award the Tender. This would mean going back out to tender, resulting in significant delays to the contract award and potential significant delays to the delivery of the Lou
Weston Courts.

For the reasons provided in this report, the abovementioned options are not recommended.

CONCLUSION

It is recommended that Council endorse the outcomes of the City’s tender evaluation panel’s assessment in relation to tender RFT23-19 Lou Weston Courts Construction & Civil Works which recommends BCP Contractors Pty Ltd as the most advantageous to the City.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The selection of the preferred tenderer can be made immediately after the Council has endorsed the Officer's recommendation. Subject to successful negotiation in accordance with the officer recommendation.

 


Council                                                                                      472                                                        11 December 2019

14.2           RFT 24-19 LOU WESTON PAVILION CONSTRUCTION

STRATEGIC GOAL

1. COMMUNITY: Welcoming, friendly, healthy

STRATEGIC OBJECTIVE

1.4 Community services and programs that support people of all ages and backgrounds.

SUBJECT INDEX

Tenders

BUSINESS UNIT

Major Projects and Facilities

REPORTING OFFICER

Manager Major Projects and Facilities - Eden Shepherd

AUTHORISING OFFICER

Director, Engineering and Works Services - Oliver Darby

NATURE OF DECISION

Executive: substantial direction setting, including adopting strategies, plans and policies (excluding local planning policies), tenders, setting and amending budgets, funding, donations and sponsorships, reviewing committee recommendations

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   Published Under Separate Cover Confidential RFT24-19 Evaluation & Recommendation Report

Attachment b    Published Under Separate Cover Confidential Evaluation Score Sheet & Consensus Sheet  

 

OFFICER RECOMMENDATION

That the Council:

1.    Pursuant to RFT24-19 Lou Weston Pavilion Construction, endorse the tender from Innovest Construction Pty Ltd for $ 809,241.85 (exclusive of GST) as the preferred tenderer.

 

2.    In respect to RFT24-19, delegate power and authority to the Chief Executive Officer
to:

a)         Negotiate and agree with the Preferred Tenderer variations in accordance with Regulations 20 and 21A of the Local Government (Functions and General) Regulations 1996 subject to such variations not to exceed the overall project budget;

b)        Negotiate and agree with the Preferred Tenderer the final terms and conditions of the respective contracts (including rates/contract prices); and

c)         Subject to resolutions 2(a) and 2(b), enter into contracts with the Preferred Tenderer for supply of the relevant goods and services.

 

EXECUTIVE SUMMARY

The City’s objective with this Request for Tender is to engage a suitably experiences Contractor for the following works at Lou Weston Oval, Dorsett Street, West Busselton:

·    Demolition of existing Lois Hannay Pavilion.

·    Construction of the new Lois Hannay Pavilion.

·    Supply of temporary power to the Temporary Netball Office during the construction period.

 

 


BACKGROUND

Community and sporting groups have utilised Lou Weston Oval, located at Lot 4539 King Street Busselton for many years. Lou Weston Oval is a three (3) hectare public reserve that is utilised for recreational purposes year round, featuring an active playing field, nine (9) netball courts with limited sports lighting, a club building, a small change room, and a toilet facility.

 

In summer, the active playing fields are utilised by the sport of tee-ball, and in winter by Junior Australian Rules Football, Auskick and Netball. 

 

In 2013 the City of Busselton Council adopted the Active Open Space Planning Recommendations to guide the future planning of active open space facilities within the district. This followed 18 months of consultation, needs assessments, a review of the City Leisure Services Plan and a demographic analysis of individual population precincts across the City.

 

The facilities were assessed as either Local, District or Regional and the recommendations and designations across the region are detailed within the Active Open Space Planning 2013 document.

 

It was endorsed as part of these recommendations that Lou Weston Oval be designated as a local level facility for active open space sports such as diamond sports (Tee ball) and the club based sport of Netball, and as a future facility for Baseball, and provision be made for local level facilities for junior Australian Rules Football. Since that report and following recent consultation, the identified sports are netball, basketball, junior football and tee ball with the possibility of Little Athletics. The junior football clubs have expressed a need to relocate to Bovell Oval in the future pending the outcome of a strategic recreation strategy which is to commence in September/October 2018.

 

The key facility development strategies for Lou Weston Oval Included:

 

1.  That ageing infrastructure at Lou Weston Oval is replaced by considering shared club facilities and rationalisation of ablution facilities including:

 

·    Additional storage;

·    Rationalisation of club rooms, change rooms and toilets at the reserve;

·    Shelter / viewing area for spectators;

·    Installation of sports lighting at the active playing fields and courts.

 

A Needs Assessment has been reviewed for Lou Weston Oval with the preferred outcome being an upgrade to the existing netball courts from 9 courts to 12 courts (to allow for future growth) and to dual purpose six of these courts with basketball.  In addition, replacement of the existing netball pavilion is to be undertaken to include additional storage, male and female change rooms/toilets, change/toilet facilities for disabled and an increased verandah/viewing area.

 

The new facility will be capable of providing training and/or competition facilities for proposed regular users such as the Busselton Tee Ball Association, Country Junior Football Club, Wanderers Junior Football Club, Local Auskick Centre, Busselton Netball Association and Busselton Amateur Basketball Association. It will also provide a facility for Little Athletics.


 

Floor plan Lou Weston Pavilion

OFFICER COMMENT

RFT24-19 Lou Weston Pavilion Construction was issued as a Public Tender on Saturday 2nd November 2019 and closed Tuesday 26th November 2019. The invitation to tender was advertised in the West Australian, on the City’s TenderLink procurement platform. The City received eight compliant Tender Responses from the following contractors:

 

·    Big Ben Builders Pty Ltd

·    CEM Alliance Pty Ltd

·    Challis Builders

·    Civilcon Constructions PL

·    Devlyn Australia Pty Ltd

·    Hacer Pty Ltd T/A Smith Constructions WA

·    Innovest Construction

·    ProLiving Pty Ltd

 

Assessment Process

In accordance with the City’s procurement practices and procedures tender assessments were carried out by a tender evaluation panel comprising City officers and an independent evaluation panel member with relevant skills and experience. The tender assessment process included:

 

·    Assessing tenders received against relevant compliance criteria. The compliance criteria were not point scored.  Each submission was assessed on a Yes/No basis as to whether each criterion was satisfactorily met. All tenders were deemed compliant.

·    Assessing tenders against the following qualitative criteria:

 


 

Criteria

Weighting

Relevant Experience

25%

Local benefit

5%

Respondent’s  Capacity and Resources

10%

Demonstrated Understanding

20%

Price

40%

 

A scoring and weighting system was used to assess the tenders against these qualitative criteria.

 

The extent to which a tender demonstrated greater satisfaction of each of the qualitative criteria resulted in a greater score. The tendered prices were then assessed together with the weighted qualitative criteria and the tenders scored and ranked to determine the most advantageous outcome to the City, based on principles of best value for money.  That is, although price was a consideration, the tender containing the lowest price will not necessarily be accepted, nor will the tender ranked the highest on the qualitative criteria.

 

Summary of Assessment Outcomes

The outcome of the evaluation panel’s assessment was as follows:

 

Rank

Company

Summary

1.

Innovest Construction

Recent delivery of sports pavilions demonstrated in submission including with a local stakeholder group. Over 50% of subcontractors local, Sponsorship of the local football club among others.  References that projected 98% of project value will be spent within Busselton and the South West region indicating strong local benefit. Extensive resources available. Good knowledge of project requirements and local context.  Experience working in Busselton Foreshore during peak season.

2.

Devlyn Australia Pty Ltd

Recent delivery of sports pavilions demonstrated in submission, sufficient resources available. Comprehensive, logical program and sound methodology.

3.

Hacer Pty Ltd T/A Smith Constructions WA

Delivery of sporting facilities demonstrated in submission, sufficient resources available, detailed program and sound statement of works delivery.

4.

Civilcon Constructions PL

Recent delivery of sports pavilions demonstrated in submission, sufficient resources available, however insufficient detail around demonstrated understanding of project requirements.

5.

Big Ben Builders Pty Ltd

No specific sporting facilities experience. Sound understanding of project requirements, however no program provided.


 

6.

Challis Builders

No experience of building pavilions, mainly smaller projects listed in submission. Program only provided, no further written detail around demonstrated understanding of project requirements.

7.

ProLiving Pty Ltd

Delivery of the YCAB demonstrates the ability to work in a highly public forum.  However this is the only example of a recent commercial project. Insufficient detail provided in submission.

8.

CEM Alliance Pty Ltd

No structural or demolition projects mentioned in submission, insufficient respondent's resources detail provided. Limited information provided to indicate detailed understanding of project requirements

 

Statutory Environment

The contract value is greater than $500,000, therefore, in accordance with section 5.43(b) of the Local Government Act 1995 (the Act), read with Delegation 3J, the tender must be accepted by the Council and will require a report to the Council.

 

In terms of section 3.57 of the Act, a local government is required to invite tenders before it enters into a contract of a prescribed kind under which another person is to supply goods and service. Part 4 of the Local Government (Functions and General) Regulations 1996:

 

·    requires that tenders be publicly invited for such contracts where the estimated cost of providing the required goods and/or service exceeds $150,000; and

·    under Regulations 11, 14, 18, 20 and 21A provides the statutory framework for inviting and assessing tenders and awarding contracts pursuant to this process.

With regard to RFT24-19, City officers have complied with abovementioned legislative requirements.

The officer recommendation supports the general function of a local government under the Local Government Act 1995 to provide for the good government of persons in its district.

Relevant Plans and Policies

The City's purchasing policies and its occupational health and safety, asset management and engineering technical standards and specifications were all relevant to RFT24-19, and have been adhered to in the process of requesting and evaluating tenders.

Financial Implications

The project/procurement for the Lois Hannay Pavilion Construction and Lou Weston Courts and Civil Works Construction will be funded as follows:

 

Infrastructure Development Reserve     

$363,400

Community Facilities City District            

$1,000,000

Government Grants CSRFF

$400,000

Busselton Netball Club contribution

$120,000

Total

$1,883,400

 

Innovest Construction who is recommended for award of the contract has submitted a lump sum Tender price within the City’s approved budget funding.

Stakeholder Consultation

RFT24-19 was advertised in the West Australian newspaper on Saturday 2nd November 2019 and the City of Busselton tenders website (TenderLink) on Saturday 2nd November 2019. The closing time and date for lodgement of a response was 2.00pm (AWST) on Tuesday 26th November 2019.

Risk Assessment

An assessment of the potential implications of implementing the Officer's recommendation has been

undertaken using the City's risk assessment framework, with the intention being to identify risks which, following implementation of controls, are identified as medium or greater. There are no such risks identified, with the preferred tenderer assessed as being capable of delivering the services to a suitable service level and in line with the agreed cleaning schedule.

Options

The Council may consider the following alternate options:

1)    To award the Tender to an alternative tenderer/s. In the view of the Officers this could result in the Tender being awarded to a Tenderer that is not most advantageous to the City.

2)    To not award the Tender. This would mean going back out to tender, resulting in significant delays to the contract award and potential significant delays to the delivery of the Lois Hannay Pavilion.

For the reasons provided in this report, the abovementioned options are not recommended.

CONCLUSION

It is recommended that Council endorse the outcomes of the City’s tender evaluation panel’s assessment in relation to tender RFT24-19 Lou Weston Pavilion Construction which recommends Innovest Construction as the most advantageous to the City.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The selection of the preferred tenderer can be made immediately after the Council has endorsed the Officer's recommendation. Subject to successful negotiation in accordance with the officer recommendation.

  


Council                                                                                      485                                                        11 December 2019

15.             Community and Commercial Services Report

15.1           BUSSELTON JETTY VILLAGE PROPOSAL

STRATEGIC GOAL

4. ECONOMY Diverse, resilient, prosperous

STRATEGIC OBJECTIVE

4.3 Events and unique tourism experiences that attract visitors and investment.

SUBJECT INDEX

Busselton Jetty

BUSINESS UNIT

Community and Commercial Services

REPORTING OFFICER

Director, Community and Commercial Services - Naomi Searle

Property Management Coordinator - Sharon Woodford-Jones

Legal Services Coordinator - Cobus Botha

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

NATURE OF DECISION

Quasi-Judicial: to determine an application/matter that directly affects a person’s right and interests e.g. development applications, applications for other permits/licences, leases and other decisions that may be appealable to the State Admin Tribunal.

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   Proposed Licence Area - Jetty Village

Attachment b    Published Under Separate Cover  Confidential: Project P&L - Jetty Village  

 

OFFICER RECOMMENDATION

That the Council resolves to:

SIMPLE MAJORITY

1.         Support the proposed Busselton Jetty Village project as outlined in this report (“Village Project”);

2.         Endorse the Village Project licence fee payable by Buselton Jetty Inc. (“BJI”) as follows:

    2020/2021 - $15,000

    2021/2022 - $25,000

    2022/2023 - $30,000

    2023/2024 - $35,000

     2024/2025 financial year (and thereafter, on every fifth anniversary of the term) to be   reviewed and adjusted for the next 5 year period, based on BJI’s actual net income from Village operations at the time;

3.         Formalise BJI use of the Busselton Jetty for the Village Project by way of a licence agreement on terms and conditions as outlined in this report;

4.         In order to give effect to resolutions (1) – (3) above, authorise the Chief Executive Officer to:

a.   negotiate and enter into a licence agreement with BJI for delivery and operation of the Village Project subject to the approval of the Minister for Lands and the Department of Transport;

b.  amend the Busselton Jetty licence agreement between the City of Busselton and BJI to reflect the licence fee arrangement as outlined in the report

 

 

5.         Authorise the CEO to request and accept a revision to Management Order L223936 from the Minister for Planning, Lands and Heritage in respect to Reserve 46715 as follows:

a)    delete the words “…other than the Main Jetty Area,…”;

b)    replace the Reserve Purpose with “Recreation, Tourism, Heritage, Education and Marine Research and for purposes ancillary or beneficial to that designated purpose only”; and

c)    such other changes as may be necessary or appropriate to allow current and future use of the Busselton Jetty and Reserve 46715 for the purposes specified in resolution 5(b) above.

ABSOLUTE MAJORITY

 

6.         Contribute $100,000 (exclusive of GST) towards the cost of construction of buildings and structures that form part of the Village Project and endorse the requested budget amendment as outlined below:

 

Cost Code

Description

Current Budget

$

Change

$

Resulting Proposed Amended Budget

$

Reserves

 

 

 

 

110-9103

Transfer from Jetty Maintenance Reserve

(2,982,095)

(75,000)

(3,057,095)

Expenditure

 

 

 

 

500-11160-3640-0000

Donations & Contributions – Busselton Jetty Management Agreement

25,000

75,000

100,000

TOTALS

 

(2,957,095)

0

(2,957,095)

 

EXECUTIVE SUMMARY

In 2016 Busselton Jetty Inc (BJI) commissioned a feasibility study to identify revenue generating opportunities with the objective of ensuring the organisation’s long term sustainability and to maximise revenue raising to preserve and maintain the Busselton Jetty.  Through this study a two-staged development was identified that would value-add to the visitor experience and increase revenue streams; stage one being the Busselton Jetty Village project (the subject of this report), stage two being a new underwater discovery centre (future project).

 

Following the securing of Federal Government funding for the Busselton Jetty Village project, BJI has progressed detailed designs and requested an allocation of $100,000 from the City of Busselton towards the estimated $1.8M project.  Through ongoing briefings to Council, in-principle support was provided for the project resulting in the development of a draft terms and conditions of a proposed licence agreement to enable the project to proceed; as outlined in this report.

 

BACKGROUND

BJI, formerly known as “BJECA” (the Busselton Jetty Environment and Conservation Association Incorporated), is a Busselton based voluntary incorporated association with, among other things, the following objectives:

 

·    Raising funds to protect and preserve the Busselton Jetty and the environment around it; and

·    Being resourceful, financially viable and economically sustainable to ensure it meets its obligation to provide funds for the preservation and maintenance of the Busselton Jetty.

 

BJI has for many years been raising funds and actively worked towards restoration of the Busselton Jetty. In 2008 the City obtained grant funding of $24 million from the South West Development Commission (SWDC) for purposes of refurbishing the Busselton Jetty.  The grant agreement between the City and SWDC required the City, among other things, to:

 

·    Enter into a performance based operator agreement with BJI in respect of “Jetty related activities” for a “renewable 5 year term”; and

·    Establish a “Jetty maintenance account” and contribute to that account a minimum of $650,000 per year from “operating revenues associated with jetty-related activities”.

 

In accordance with the SWDC grant agreement:

 

·    The City established the Jetty Maintenance Reserve Account (established and administered under Section 6.11 of the Local Government Act) for the purposes of maintenance and repair of the Busselton Jetty; and

·    The City and BJI entered on 30 October 2009 into a licence agreement (Busselton Jetty Licence) in terms of which BJI was granted the right to conduct certain commercial activities at/on the Busselton Jetty in consideration for payment of an annual licence fee, and also assumed certain maintenance obligations (Licenced Activities).

 

The Licenced Activities include collecting entrance fees (from persons entering the Busselton Jetty from its land side) and operating the Busselton Jetty train, the underwater observatory (located near the northern end of the Busselton Jetty) (UWO) and the Interpretive Centre (IC) – that is the ticket office/retail outlet at the jetty entrance. The Licenced Activities constitute BJI’s main business and is BJI’s main source of revenue. 

 

In 2016, following a review of the Busselton Jetty Licence, the City and BJI agreed to extend the term of the BJI Jetty Licence for a further 42 years (the initial term now expiring 2038 with BJI having an option to extend the initial term for 3 further terms of 7 years each). As part of this review the Busselton Jetty Licence was also amended to redefine the way the licence fee payable by BJI, is calculated. Further detail about the licence fee is provided in the Financial Implications section of this report.

 

The Busselton Jetty is a highly successful tourist attraction.  The UWO is the main attraction on the Busselton Jetty, with tours for visiting the UWO (most of which include a trip on the Busselton Jetty train) generating the most income. Despite increasing operating hours of the UWO during peak seasons, visitors are turned away from UWO tours due to building’s size constraints.

 

A feasibility study commissioned by BJI in 2016 found that it is imperative to implement new income generating activities at and on the Busselton Jetty in order to ensure its financial sustainability over the long term. Through this feasibility study the Busselton Jetty Village concept evolved (Village Project). The proposed Village Project forms part of a two-stage development proposed by BJI, with the second stage being a proposed Australian Underwater Discovery Centre (AUDC). The AUDC project, currently in its planning stage, proposes a new UWO as a key strategy for increasing revenue from Busselton Jetty operations.

 

This project will comprise construction of a new state of the art underwater observatory with a larger footprint than the existing UWO. BJI has indicated that funding of a significant portion of the AUDC project costs has been from the Federal government and that further progression is currently subject to a State Government funding proposal.  On 26 June 2019 Council expressed conditional in-principle support for BJI’s AUDC proposal (C1906/118).

 

The primary objective of the Village Project is to expand current Busselton Jetty facilities to improve visitor experiences at the end of the Busselton Jetty by providing a “Village” precinct offering a range of facilities that will complement the existing UWO, Busselton Jetty Train and, in time the proposed AUDC.  BJI indicated that, in general, their aim with the Village Project is to:

 

·    Create a world-class facility at the end of the iconic Busselton Jetty, offering a unique destination experience to the local community and people visiting Busselton, the South West region and Western Australia;

·    Increase visitation to the Busselton Jetty;

·    Construct and operate a multi-use facility that is both functional and economically sustainable, with visitor comfort and safety incorporated into design; and

·    Enhance and complement existing BJI operations and pursue alternative revenue-generating opportunities.

 

In August 2019 BJI provided the City with a Busselton Jetty Village Project Management Plan, with detailed information about the Village Project which can be summarised as follows:

 

·    The “Village” will be located at the end of the Busselton Jetty, immediately north of the UWO;

·    The proposal is for construction and use of the following “Village” buildings/structures:

¾  “Food and beverage pod” to be used as a retail food and beverage outlet (approximately 63m2)

¾  Public toilets (approximately 30m2)

¾  “Interpretive Zone” to be used as a multi-purpose space providing multi-sensory and interactive marine scientific activities for school children and visitors (approximately 42m2); and

¾  “Staff/volunteer pod” to be used for administration and storage purposes (approximately

18m2) with an adjacent “service yard” for bin and general storage (approximately 55m2).

·    All of these buildings/structures are to be covered by a single high gable ended roof, intended to match the 'pitch' of the existing UWO roof structures and simultaneously creating a greater volume internally and providing a greater sense of space;

·    By having the “Village” area covered, the proposed development will provide better protection from the extremities of the elements through provision of shelter from the sun, heat, wind and rain; and

·    The building design is intended sit in harmony with the existing Busselton Jetty buildings (UWO and IC), taking cues from the materials, colour palette and form. It is also designed to complement and accommodate the proposed future Australian Underwater Discovery Centre.

 

Officers have updated Councillors about the Village Project since February 2019 through various Council briefing sessions, with Councillors indicating their in-principle support for the Village Project. As part of this, Council was briefed on a request of BJI for the following:

 

·    City to contribute $100,000 towards new ablution facilities

·    In lieu of the current licence fee payable under the Busselton Jetty licence agreement (as outlined in the Financial Implications section of this report), a fixed $10,000 annual payment to be transferred to a new “special purpose fund” that will fund the future Australian Underwater Discovery Centre project.

 

Further to this, BJI has now confirmed that funding for the project has been secured (see the Financial Implications section of this report) and detailed designs have been prepared.  As such, BJI and City officers have negotiated draft terms and conditions of a proposed licence agreement. This report is now presented to Council for consideration and formal endorsement of this project.

 

OFFICER COMMENT

BJI has approached the City with a proposal to develop and operate the Busselton Jetty Village at the northern end of the Busselton Jetty. In support of their proposal BJI has provided the City with a range of documentation detailing the Village Project, including:

·    Business Case - Village Project March 2019

·    Busselton Jetty Village Project Management Plan August 2019

·    Busselton Jetty Village Construction Communication Plan

·    SMC Busselton Jetty 80% Design Report 07-10-2019 Combined

·    Busselton Jetty Village Consultation Information

·    SMC Marine for overall design and construction management of the Village Project;

·    WML Engineering for structural design of all buildings and structures;

·    Engineering Technology Consultants for electrical and telecommunications design and installations; and

·    TJ Peach and Associates for hydraulic and mechanical design work.

               

The information provided by BJI indicates sufficient justification for the Village Project and also indicates that BJI has the capacity and resources to successfully deliver the project.

 

The Busselton Jetty is constructed on Reserve 46715, which is Crown land reserved under section 41 of the Land Administration Act for the purpose of “Recreation, Tourism and Heritage”. Care, control and management of this reserve has been vested in the City on conditions set out in Management Order L223936 (Management Order). Due to the current (restrictive) wording of certain conditions in the Management Order the City has limited power to grant a lease or licence over Busselton Jetty – this issue is further discussed in the Statutory Framework section of this report. An amendment of the Management Order has been sought and recently approved at officer level by the Department of Planning Lands and Heritage (DPLH), the agency responsible for administration of the Land Administration Act.  

 


In providing in-principle approval referred to above, the DPLH advised that any tenure arrangement that will restrict public access to the Busselton Jetty or any part thereof (e.g a lease), will not be approved. The City has always endorsed this principle – the Busselton Jetty is considered to be a community asset and access to the whole of the Busselton Jetty should, subject to certain security and public-safety requirements, at all times be available to the public at large.  It is recommended therefore that BJI’s tensure and use of the Busselton Jetty for the Village Project is formalised by way of a “stand-alone” licence agreement.

 

City officers have negotiated the essential terms of a proposed licence agreement with BJI, which are now presented to Council for consideration and approval:

 

·    Licensed activities

Undertaking and completing construction of the buildings and other structures comprising the “village”, operating a retail food and beverage outlet, undertaking marine interpretive/educational activities within the licenced area, use of the designated building for office and  administration purposes, provision of public facilities such as ablutions, showers, storage lockers and other amenities ancillary to the licenced activities and, with the City’s prior approval, use of the licenced area as a multi- purpose function and events facility.

 

·    Licensed area

The section of the Busselton Jetty (approximately 150 metres) to the north of the UWO, the location and layout (conceptually) is shown on the plan attached to this report.

 

·    Licence non-exclusive

The licence is non-exclusive and will not create in or confer or grant BJI any tenancy, estate or interest in the Busselton Jetty or Reserve 46715, other than a contractual right for BJI to use the designated licenced area for the licenced activities. In addition the licence will be granted subject to any other rights or interests which exist or which may be created in respect of the Busselton Jetty or Reserve 46715. This means that the City will not be precluded from permitting in future any further activities at/on the Busselton Jetty (e,g activities such as berthing for cruise ships, sporting events, filming and activities for educational purposes).

 

·    Approvals required

The licence is granted subject to BJI and the City obtaining all approvals and consent required for the Village Project. These include ministerial consent in accordance with the Land Administration Act, approval from Department of Transport as required under the Jetties Act and development approval in accordance with the City’s local planning scheme.

 

·    Structural integrity

BJI must obtain City approval of the design and structural integrity of the proposed buildings and other structures to be constructed. BJI will also be required to demonstrate that the proposal will not impact on the structural integrity of the Busselton Jetty.

 

·    Term 

BJI’s project Management Plan indicates “a design life of all structural elements of 25 years”. However the term of the current licence agreement is for a 21 years, plus three further 7 year options.  The first option is due in April 2038, it is therefore recommended that the minimum term be aligned to this, with any further term to be approved by the City and the Minister for Lands, subject however to the term not exceeding the term of the existing Busselton Jetty Licence.


·    Licence fee

The proposed licence fee payable by BJI to the City is discussed in the Financial Implications section of this report.

 

·    Public access

BJI must ensure that the licenced activities do not restrict public access to the licenced area or any other section of the Busselton Jetty. However BJI will be allowed to determine in its sole discretion the “Village” trading hours, BJI may reserve the right of admission to all buildings and, as is currently the case with the UWO and Interpretive Centre, may for security and safety purposes lock up and adequately secure all buildings and other structures within the “Village” precinct.

 

·    Construction works and licenced activities will be at BJI cost and risk.

Subject to the City’s contribution towards the Village Project (as outlined in the Financial Implications of this report), BJI will be responsible to undertake all construction works and operate all licenced activities at its cost and risk. This includes ongoing maintenance of all buildings and other structures.

 

·    Construction clauses

As BJI will be constructing buildings and other structures on Crown land, the licence agreement will include a number of terms and conditions detailing BJI’s obligations and liabilities during the construction phase of the Village Project.

 

·    Performance bond

To better secure BJI’s obligations during the construction phase of the project, City officers initially proposed that BJI provide the City with a performance bond. BJI pointed out that the City’s risk in this regard should mostly be covered by the fact that the majority of the buildings/structures will be fabricated off-site and, in addition, that BJI’s builder will be required to provide a bond or retention money to secure its due performance under the construction contract between BJI and the builder. It is considered that these measures sufficiently mitigate the City’s relevant risk and it is therefore recommended that the City waives this requirement.

 

·    Insurances

BJI will be required to effect and maintain at its cost adequate building, public liability and workers compensation insurance.

 

·    General conditions         

The proposed licence agreement will include “general” conditions similar to those contained in the existing Busselton Jetty Licence, e.g BJI’s obligation in relation to keeping of accounts, determination of key performance indicators and BJI’s compliance with those KPIs. No additions or alterations to the Busselton Jetty will be allowed without the City’s prior approval and terms and conditions dealing with default, damage to or destruction of the Village and Busselton Jetty, licence fee abatement in such events, holding over and surrender and reinstatement of the licenced area upon termination of the licence agreement will also be included.

 

It is considered that a licence agreement based on the above terms and conditions is the most effective way of providing BJI with a formal operating framework encompassing the legal and commercial arrangement between the City and BJI in relation to the Village Project.


Statutory Environment

Land Administration Act 1997 (WA) (LAA)

The Busselton Jetty is constructed on Reserve 46715, which is Crown land reserved under section 41 of the LAA for the purpose of “Recreation, Tourism and Heritage”. Pursuant to section 46 of the LAA the Minister for Lands may by order vest care, control and management of a reserve for its designated purpose with a person (including a local government).

 

Care, control and management of Reserve 46715 has been vested in the City on conditions set out in the Management Order. Pursuant to condition 3.1 of the Management Order the City has the power to grant, subject to obtaining the Minster’s prior approval, “a lease, sublease or licence over any part of the Reserve, other than the Main Jetty Area”. This restriction (“other than the Main Jetty Area”) does not align with use of the Busselton Jetty for the licenced activities as approved under the existing Busselton Jetty Licence, and may also prevent the City from granting BJI the proposed licence for the Village Project.

 

This issue has been flagged with Department of Planning, Lands and Heritage and the City’s request to amend the Management Order to provide the City with the power to grant licences over any part of the Busselton Jetty has been approved at officer level.  The approval is accompanied by a direction that the provisions of the proposed licence agreement with BJI must not impede the ability of the public at large to access and enjoy the Busselton Jetty. The amendment to the Management Order will contain conditions to that effect, which City officers consider are reflected in the provisions of the proposed licence agreement.

 

Under the Management Order the City may, subject to the other conditions of the Management Order, grant a lease or licence for a term that is not to exceed in total 49 years and which may comprise an initial term of not more than 25 years, with an option to renew for a further term not exceeding 24 years. It is expected that these conditions will remain the same in the proposed amendment Management Order.


In terms of section 18 of the LAA a management body must obtain prior Ministerial approval for any lease or licence granted by that management body in respect of Crown land. This means that the City must obtain prior Ministerial approval for any lease or licence granted by the City in respect of the Busselton Jetty or Reserve. This statutory requirement will be reflected in the amended management order and the proposed licence with BJI.

 

Jetties Act 1926 (WA) (Jetties Act)

The Busselton Jetty is managed and operated under a jetty licence granted to the City by Department of Transport under the Section 7 of the Jetties Act. In terms of this licence the City:

·    May only use the Busselton Jetty for the use permitted under this licence (which includes operation of the existing UWO);

·    May appoint a person or entity to undertake its management obligations (or some of them) in respect to the Busselton Jetty;

·    Must maintain the Busselton Jetty in accordance with a pre-approved maintenance plan;

·    Must not, and must not permit, any structural changes or additions to the Busselton Jetty without the Department’s prior approval; and

·    When seeking approval for structural changes or additions, must submit detailed plans of and reasons for the proposed changes and a maintenance plan for ongoing maintenance of any new structural addition.

 


The Department of Transport has in-principle approved the Village Project and proposed that the City impose a number of conditions on BJI, aimed at protecting the structural integrity of the Busselton Jetty. These conditions will be dealt with in the proposed licence agreement and the development approval process.

 

Local Government Act 1995 (WA) (LGA)

Section 3.58 of the LGA regulates the disposal of property by a local government (including “the whole or any part of the interest of a local government in property”) whether by sale, lease or other means. In terms of section 3.58 a local government is required to give local public notice when disposing of “property”, unless the “property” is disposed of by way of a public tender or public auction. However under regulation 30 (2)(b) of the Local Government (Functions & General) Regulations 1996 disposition of local government property to charitable or benevolent organisations is excluded from the requirements under section 3.58. Therefore, to the extent that the proposed licence agreement between the City and BJI could be considered “disposal” of local government “property” as contemplated under section 3.58 of the LGA, the exemption under regulation 30 (2)(b) will apply.

 

In terms of section 9.49B of the LGA a person acting under the authority of a local government may make, vary or discharge a contract in the name of or on behalf of the local government in the same manner as if that contract was made, varied or discharged by a natural person. It is recommended that the Council authorises the Chief Executive Officer pursuant to section 9.49B of the LGA to negotiate and enter into a licence agreement with BJI for delivery of the Village Project on the terms and conditions as outlined in this report.

 

Relevant Plans and Policies

The Village Project is consistent with the contents of the Busselton Foreshore Master Plan, where activation of the Busselton foreshore is identified as a key priority.

The City’s Corporate Business Plan identifies key City led or funded priority actions and projects over the ensuing four years.  This project was initially identified as a medium-long term project and as such is not contained within the City’s current Corporate Business Plan.

Financial Implications

Note all amounts mentioned in this report are exclusive of GST.

 

Construction costs

BJI indicated that sufficient funding has been secured to allow them to progress with implementation of the Village Project and provided the following indicative costing information:

 

·    The estimated project costs total $1.8M, including fit out and “interpretation” costs;

·    $1.7M of funding has been secured from Lottery West, State and Federal grant funding, and BJI funds; and

·    BJI have requested the City contribute $100,000 towards the construction of new ablution facilities.

 

Due to the increasing number of visitors to the UWO and more broadly the Jetty itself, the current ablution facilities located at the end of the Jetty have become inadequate.  Regardless of whether the Village Project proceeds, the Jetty would greatly benefit from additional ablution facilities. 

 

 

As a result, it is recommended that the City contributes $100,000 towards the Village Project for this purpose and that this be funded from the Busselton Jetty Reserve. $25,000 has already been included in the 2019/20 budget, therefore a further $75,000 is required to be funded from the Busselton Jetty Reserve.

 

Licence fee

The licence fee payable by BJI pursuant to the existing Busselton Jetty Licence (that is for collecting entrance fees and operating the Busselton Jetty train, the UWO and the Interpretive Centre) is based on a percentage of BJI’s “Gross Revenue” and payable in bi-annual instalments into the Jetty Maintenance Reserve Account. In addition to this licence fee, rent income from commercial sites/operations at the Busselton Foreshore (including the existing Busselton foreshore cafes, the new microbrewery and the proposed hotel development) is paid into the Jetty Maintenance Reserve Account to contribute towards the costs of maintaining the Busselton Jetty. Currently the annual maintenance costs of the Busselton Jetty (as budgeted for in the Busselton Jetty Long Term Maintenance Plan) exceed the City’s income from above-mentioned income streams.

BJI proposed an annual licence fee of $10,000 for the proposed Village licence, subject to yearly CPI review/indexation. In support of this proposal BJI submitted that they intend to extend the operating hours of the UWO and Jetty train to support and add value to the Village Project, which should increase BJI’s revenue and, consequently, increase licence fees payable to the City under the existing Busselton Jetty Licence by an estimated $65,000 per year (and potentially $85,000 per year should they be able to operate a second train).

Financial projections provided by BJI for the Village Project (see confidential attachment) indicate that the following net surpluses are expected (note these numbers have been adjusted to exclude “special items” such as contributions towards a “Special Purpose Fund” that will assist in funding the future Australian Underwater Discovery Centre project):

2020/2021 - $34,926

2021/2022 - $53,691

2022/2023 - $64,928

2023/2024 - $77,169

One of the State Government and the City’s main objectives with allowing commercial/income generating operations at the Busselton foreshore and the Busselton Jetty, is to generate funds for the ongoing maintenance of the Busselton Jetty. As income from these sources is currently insufficient to cover the annual maintenance costs, it is recommended that a licence fee for the Village Project of approximately 50% (rounded down) of BJI’s projected income, would be fair and equitable. Therefore City officers recommend the following licence fee structure:

·    A fixed  licence fee payable annually in arrears (i.e by 30 June of each year)

·    Licence fee for first four years:

2020/2021 - $15,000

2021/2022 - $25,000

2022/2023 - $30,000

2023/2024 - $35,000

·    In the fifth year, that is the 2024/2025 financial year (and thereafter, on every fifth anniversary of the term) the licence fee will be reviewed and adjusted for the next 5 year period, based on BJI’s actual net income from Village operations at the time.

The approach above should strike a balance between the City’s expectation of relieving the burden on its ratepayers as far as jetty maintenance costs are concerned, and BJI’s objectives of generating additional funds for future ventures aimed at maximising use of the Busselton Jetty.

Stakeholder Consultation

To date BJI has taken a number of actions to inform, engage and consult with stakeholders in relation to the Village Project (including the public at large). These actions can be summarised as follows:

 

·    Simon McArthur & Associates - public consultation 2017

In 2017, a detailed feasibility study was completed by Simon McArthur & Associates. The study considered a variety of potential uses for/at the Busselton Jetty and involved surveying more than 3,000 visitors to the Busselton foreshore and engaging a range of stakeholders for their views on what they consider to be optimal tourism products/offerings. More than 200 ideas were identified, with the “Village” concept featuring as one of the most feasible options, along with the Australian Underwater Discovery Centre project.

 

·    BJI Customer surveys 2015/16, 2016/17, 2017/18 & 2018/19

Every year BJI distribute approximately 2,500 visitor surveys, requesting ‘open ended’ feedback. Over the past 4 years the majority of feedback focussed on the need for more ‘end of Jetty activities’ and included suggestions such as:

¾  Longer stop at the end of the Jetty

¾  Café/ restaurant at the end

¾  Cool drinks at the end of the Jetty

¾  Snorkelling at the end of the Jetty

¾  Fish and chips available at the end of the Jetty

¾  Shaded, sheltered seating at the end of the Jetty

¾  More activities at the end of the Jetty

 

·    At BJI’s request the City published an article about the Village Project and provided a link to a survey in the City’s Bay-to Bay publication circulated 31 October 2019. BJI indicated that they have received 327 responses of which more than 85% were in support. The following key comments were received:

 

¾  “The ability for even further interaction with the ocean for all users. Plus I’m sure being so innovative it will encourage even more people to visit this wonderful icon of Busselton & the South West.”

¾  “Everything that has been raised so far. Especially that it will be protected from the weather - keep the tourist dollars coming in all through the year!”

¾  “It will entice visitors, support events, and also be a fun area for locals together.”

¾  “It still has the iconic look whilst being fresh and inclusive. I would be excited to visit and happy to share the experience with our overseas visitors.”

¾  “The design concept is well thought out and I particularly like that visitors will be protected from the weather. I think this will increase the tourist numbers and also the designated swimming area”

¾  “Eateries and improved facilities at the end of the jetty making it more pleasant to stay longer at the end of the jetty”

¾  “The environmental aspects. Understanding and preserving our ocean environments and particularly educating the younger generations is so very important.”

¾  “Enables visitors and locals to have longer experiences not just walk to the end and back.”

¾  “Absolutely nothing bloody eye sore”

¾  “It will not work, 5 months a year it will need to be closed.”

¾  “Nothing, it needs to be redefined as it takes away from the beautiful jetty. I’d urge you to use an architect, not draftsman with experience and not losing site of the foundation of why people visit the setting with minimal impact”

¾  “I think it’s silly to have something that big.... I would personally just upgrade the structure that’s already out there to include food...”

¾  “As we the rate payers get slugged for yet another shire de Barkle the whole infer structural needs to be upgraded and is not well thought out for all the locals and retirees and kids who love to fish the jetty”

¾  “I believe putting more buildings and encouraging more people, holding events, etc at the end of the jetty will increase pollution of the ocean, having a bar, and weddings/events is just ludicrous. Increasing the number of people at the end of the jetty is not a positive step. If someone gets injured have you thought about how the St John Ambulance service are going to rescue them???? Busselton is overloaded with alcohol outlets and we have a burgeoning problem with intoxicated drinkers and domestic violence, not to mention our hospital and ambo staff having to deal with it firsthand.”

¾  “It’s a waste you already have 3 places to eat and a 4th going up.... why do people need another one? The whole idea is to get people out there for fun then come back to the shore for food.... there are way too many places to eat already, we should be helping the people whom are there already.”

 

·    Stakeholder engagement

Heritage Council WA, State and Federal parliamentarians, regional, State and Federal tourism organisations/agencies, Minderoo Foundation and South West Development Commission.

 

·    State Government stakeholder engagement

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place.

The following risk has been identified:

New Jetty Village infrastructure compromises structure integrity of Busselton Jetty

Risk Category

Risk Consequence

Likelihood of Consequence

Risk Level

Public Safety / Health

Catastophic

Rare

High

A structural assessment report was commissioned by the City to a third party engineer who will certify the design to ensure it complies with the structural engineering requirements of the Busselton Jetty.  Should the final design not meet the engineering requirements, the City will not provide final approval of the project.

Options

As an alternative to the proposed Officer Recommendation the Council could:

·    Resolve not to approve the Village Project; or

·    Amend the draft terms and conditions of the proposed licence agreement.

For the reasons outlined in this report these options are not recommended.

CONCLUSION

The City considers the Village Project mutually beneficial to the State of WA, BJI, the City and the public at large. It is considered that the Village Project will facilitate regional tourism and should increase revenue from Busselton Jetty operations (which should contribute towards funding jetty maintenance costs). The Village Project is also expected to encourage higher visitation by the public at large to the Busselton Jetty.

The proposed licence agreement is considered to be the most effective way of providing BJI an operating platform and formalising the legal arrangements and commitments between the City and BJI in relation to the Village Project.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Should Council resolve to adopt the officer recommendation the next steps for delivering the Village Project are as follows (note the timelines are indicative only as some of these actions are outside the City’s control):

 

·    City officers and BJI to finalise negotiations and prepare a draft licence agreement based on the terms and conditions outlined in this report – December 2019

·    Department of Planning, Lands and Heritage to provide the City with an amended Management Order – January 2020

·    The City to submit the draft licence agreement for Ministerial approval under Section 18 of the LAA – January 2020

·    The City and BJI to execute the licence agreement upon receipt of Ministerial approval – January 2020

·    BJI to commence fabrication/ construction – February 2020

·    Indicative construction completion date – October 2020.

 


Council

486

11 December 2019

15.1

Attachment a

Proposed Licence Area - Jetty Village

 


Council                                                                                      491                                                        11 December 2019

15.2           COMMUNITY BIDS 2019/2020 ROUND 2 ALLOCATIONS

STRATEGIC GOAL

STRATEGIC OBJECTIVE

1. COMMUNITY: Welcoming, friendly, healthy

1.4 Community services and programs that support people of all ages and backgrounds.

SUBJECT INDEX

Donations, Contributions and Subsidies

BUSINESS UNIT

Community Services

REPORTING OFFICER

Community Development Officer - Naomi Davey

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

NATURE OF DECISION

Executive: substantial direction setting, including adopting strategies, plans and policies (excluding local planning policies), tenders, setting and amending budgets, funding, donations and sponsorships, reviewing committee recommendations

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Nil

                                                             

OFFICER RECOMMENDATION

That the Council:

1.         Endorses the following funding allocations for round two of the 2019/20 Community Bids funding program as outlined in the table below:

 

 

APPLICANT