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

CITY OF BUSSELTON

MINUTES FOR THE Council MEETING HELD ON 11 December 2019

TABLE OF CONTENTS

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

1....... Declaration of Opening aCKNOWLEDGEMENT OF COUNTRY / ACKNOWLEDGEMENT OF Visitors / DISCLAIMER / NOTICE OF RECORDING OF PROCEEDINGS. 3

2....... Attendance. 3

3....... Prayer. 4

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

5....... Disclosure Of Interests. 4

6....... Announcements Without Discussion.. 4

7....... Question Time For Public. 4

8....... Confirmation and Receipt Of Minutes. 7

Previous Council Meetings. 7

8.1          Minutes of the Council Meeting held 27 November 2019. 7

Committee Meetings. 7

8.2          Minutes of the Finance Committee Meeting held 21 November 2019. 7

8.3          Minutes of the Meelup Regional Park Committee Meeting held 25 November 2019. 7

9....... RECEIVING OF Petitions, Presentations AND DEPUTATIONS. 8

10..... QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN (WITHOUT DISCUSSION). 8

11..... Items brought forward.. 9

ADOPTION BY EXCEPTION RESOLUTION.. 9

12.1        Finance Committee - 21/11/2019 - APPLICATION FOR RATE EXEMPTION - ACCESS HOUSING AUSTRALIA LTD.. 10

12.2        Finance Committee - 21/11/2019 - APPLICATION FOR RATE EXEMPTION - SOUTH WEST COUNSELLING INC. 52

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

12.6        Meelup Regional Park Management Committee - 25/11/2019 - MEELUP REGIONAL PARK MANAGEMENT PLAN.. 127

13.1        DRAFT ENERGY STRATEGY. 342

13.2        DRAFT DUNSBOROUGH LAKES STRUCTURE PLAN - LOT 9050 CLUBHOUSE DRIVE, DUNSBOROUGH LAKES - CONSIDERATION FOR FINAL APPROVAL. 435

13.4        CITY OF BUSSELTON BUSHFIRE MANAGEMENT PLAN.. 453

15.2        COMMUNITY BIDS 2019/2020 ROUND 2 ALLOCATIONS. 506

16.1        PROPOSED LEASE DUNSBOROUGH AND DISTRICTS PROGRESS ASSOCIATION INC. 511

17.1        COUNCILLORS' INFORMATION BULLETIN.. 517

ITEMS TO BE DEALT WITH BY SEPARATE RESOLUTION (WITHOUT DEBATE). 520

12.3        Finance Committee - 21/11/2019 - BUDGET AMENDMENT REQUEST / REVIEW - LGIS 2019 Surplus Distribution. 521

12.5        Finance Committee - 21/11/2019 - BUDGET AMENDMENT REQUEST / REVIEW - FLEET CAPITAL ACQUISITIONS. 524

14.1        RFT 23-19 LOU WESTON COURTS CONSTRUCTION & CIVIL WORKS. 534

14.2        RFT24-19 LOU WESTON PAVILION CONSTRUCTION.. 540

15.1        BUSSELTON JETTY VILLAGE PROPOSAL. 546

ITEMS FOR DEBATE. 560

13.3        AL FRESCO TRADING IN THE BUSSELTON CITY CENTRE - CONSIDERATION OF PROPOSALS AND FORESHADOWING OF CONSIDERATION OF CHANGES TO POLICY. 560

15.3        BUSSELTON MARGARET RIVER AIRPORT BUDGET AMENDMENT REQUEST. 573

18..... Motions of which Previous Notice has been Given.. 576

18.1        PROPOSAL TO INSTALL FOUNTAINS IN THE LOWER VASSE RIVER. 576

19..... urgent business. 687

20..... Confidential Reports. 687

21..... Closure. 687

 


Council                                                                                      4                                                             11 December 2019

MINUTES

 

MINUTES OF A Meeting of the Busselton City Council HELD IN the Council Chambers, Administration Building, Southern Drive, Busselton, ON 11 December 2019 AT 5.30pm.

 

1.               Declaration of Opening aCKNOWLEDGEMENT OF COUNTRY / ACKNOWLEDGEMENT OF Visitors / DISCLAIMER / NOTICE OF RECORDING OF PROCEEDINGS

The Presiding Member opened the meeting at 5.34pm.

2.               Attendance

Presiding Member:

Members:

 

Cr Grant Henley     Mayor

Cr Kelly Hick             Deputy Mayor

Cr Kate Cox

Cr Ross Paine

Cr Jo Barrett-Lennard

Cr Paul Carter

Cr Sue Riccelli

Cr Phill Cronin

Cr Lyndon Miles

 

Officers:

 

Mr Mike Archer, Chief Executive Officer

Mr Oliver Darby, Director, Engineering and Works Services

Mr Paul Needham, Director, Planning and Development Services

Mrs Naomi Searle, Director, Community and Commercial Services

Mr Tony Nottle, Director, Finance and Corporate Services

Ms Sarah Pierson, Manager, Governance and Corporate Services

Ms Melissa Egan, Governance Officer

 

Apologies:

 

Nil

 

Approved Leave of Absence:

 

Nil

 

Media:

 

“Busselton-Dunsborough Times”

“Busselton-Dunsborough Mail”

 

Public:

 

5


 

3.               Prayer

The prayer was delivered by Pastor Andy Pitt of the Down Douth Gospel Church.  

4.               Application for Leave of Absence

Nil

5.               Disclosure Of Interests

A declaration of financial interest was received from:

•          Councillor Kate Cox

 

For Item 13.3 ‘Al Fresco Trading in the Busselton City Centre – Consideration of Proposals and Foreshadowing of Consideration of Changes to Policy’

 

Declarations of proximity and of financial interests were received from:

•          Councillor Grant Henley

 

For Item 14.1 RFT 23-19 ‘Lou Weston Courts Construction and Civil Works’ (Proximity)

For Item 14.2 RFT 24-19 ‘Lou Weston Pavilion Construction’ (Proximity)

For Item 15.1 ‘Busselton Jetty Village Proposal’ (Financial)

 

In accordance with the Local Government (Rules of Conduct) Regulations 2007, these declarations will be read out immediately before these items are discussed.

 

6.               Announcements Without Discussion

Announcements by the Presiding Member

 

The Mayor wished Councillors a Merry Christmas and an enjoyable break with their families. We’ve had a very busy couple of months since the elections and it is important to take some time out and refresh with your families before coming back and getting down to the hard work we have for next year. I’d also like to wish Merry Christmas to all of our staff and all of our community, and especially give thoughts to our volunteers who work over the busy summer season and hope they don’t have to be ripped away from their families, and everyone is very sensible. 

 

The Mayor also announced and wished the Deputy Mayor a happy birthday.

 

7.               Question Time For Public

Response to Previous Questions Taken on Notice

 

Nil

Question Time for Public

 

7.1             Mr Stuart Anderson

 

Question

In relation to the green river we’ve got at the moment (Vasse River). Is the Council aware that fountain aeration works? The United States EPA has verified that aeration does work. Is Council also aware that the trial that is going to be done at the moment, I’ve been advised by a couple of consultants, that it’s not going to work? Is Council aware that consultants have been in there and had a look at the river and made recommendations? I’m paying rates at this Council, we need some action, when is it going to happen to get the river fixed?

 

Response

(Paul Needham, Director Planning and Development)

The advice in the agenda reflects advice we have received from a range of different scientists involved in this space. I know there’s a lot of different opinions about what will and won’t work. I’m certainly aware of some advice that I find quite convincing that fountains in a water body of that size, given the nature of the water quality issues we have, won’t have much effect. I’d also note that the water circulation trial is just a trial and we will be assessing its effectiveness. The approach we are using to try and improve the Lower Vasse River is the same sort of approach being used in terms of the Vasse Estuary channel and Toby Inlet, through a process of science and trial, we’ve arrived at treatments that have a significant effect. We’re not quite there yet with the Lower Vasse River, but I know there’s a lot of very smart people spending quite a lot of time looking at these issues.

 

Question

Is this Council aware the city of Northam use aeration and they got a consultant in to fit aeration for them?

 

Response

(Mayor)

I think I am aware the Shire of Northam have done some work recently on an ornamental lake with some fountains. There are different hydrological circumstances everywhere, some like ours with long, shallow pools with a build-up of sediment. There’s a lot of research going into all of that with the hydrology and they’re trialling some measures to work which may or may not include fountain aeration in the future.

 

Question

This trial, what scientific proof do you have that it’s going to work?

 

Response

(Mayor)

As the title suggests, it’s a trial the scientists believe could have some efficacy and the trial will determine that.

 

Question

What evidence? Where has it worked before? Who are the scientists involved in saying it works?

 

Response

(Mr Needham)

There have been discussions with various different people who have PHDs in these sorts of issues. The area has been curtained off in the river where the trial is going to be implemented. There has been advice sought on what size pump, what degree of circulation, and so on. Part of the rationale for doing the particular trial is related to earlier work done with curtains which did appear to reduce the transmission of the bloom up the river and certainly, in my view, was very successful. The thinking is you could use curtains to prevent the transmission up the river and then create a smaller water body where more intensive treatments can be used to prevent a bloom occurring. It may well be, to achieve the outcome we would all like to see in the Lower Vasse River, that multiple treatments may be implemented. It may be a combination of water circulation, it may involve a fountain, it may involve dredging and other sorts of things. It is a very, very difficult water body and according to a session I was at last week with a number of different Department of Water scientists with PHDs in the room, someone suggested it is the most polluted waterway in Western Australia. It’s certainly very challenging and has been for the last 20 plus years. It hasn’t been just the City trying to tackle that challenge; a lot of different things tried.

 

Question

I pay rates on more than one property in Busselton, if this trial for this pumping circulation doesn’t work, can I get a refund back on my rates?

 

Response

(Mayor)

No.

 

Question

Why not?

 

Response

(Mayor)

Because your rates go towards a lot of different projects, not just the beautification of a waterway which at the end of the day is the responsibility of the Department of Water, isn’t it Mr Needham?

 

Response

(Mr Needham)

That’s part of the problem, it isn’t really anyone’s responsibility. The City, this financial year, has around $230,000 for waterways projects, not all of which is for the Lower Vasse River. Of that, $170,000 is from State Government grants and $65,000 is municipal funds allocated by the Council, which was necessary to secure the State Government grants.

 

Question

I spoke to some consultants today, they told me they offered to put in aeration for free as a trial. Why wasn’t that offer taken up?

 

Response

(Mr Needham)

If they want to contact the City directly and discuss that again, I would be very happy to have that discussion.


 

8.               Confirmation and Receipt Of Minutes

Previous Council Meetings

Question by Member

Cr Paine: In the Minutes of 27 November, as a response to a question from Laura Caddy, you reference an access and inclusion committee, am I correct to interpret that as the Disability and Access Inclusion Committee?

Mayor:     Yes, that was my response.

Cr Paine: Is that still the response you would give today, having had time to reflect, that the Disability Services Act is the appropriate mechanism to deal with the issue raised by Laura Caddy?

Mayor:     On reflection, the Disability  Access and Inclusion Committee has in its terms of reference to be inclusive of all sectors of the community regardless of race, religion, gender, ability, physical or otherwise, and sexual preference, I think it was an appropriate reference. If it’s not, perhaps we need to look at the terms of reference or the suitability of that group and if it’s determined that we need another inclusion committee, that’s a position Council can take.

 

8.1             Minutes of the Council Meeting held 27 November 2019

COUNCIL DECISION

C1912/246              Moved Councillor R Paine, seconded Councillor P Carter

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

CARRIED 9/0

Committee Meetings

8.2             Minutes of the Finance Committee Meeting held 21 November 2019

COUNCIL DECISION

C1912/247              Moved Councillor P Carter, seconded Councillor P Cronin

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

CARRIED 9/0

 

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

COUNCIL DECISION

C1912/248       Moved Councillor J Barrett-Lennard, seconded Deputy Mayor K Hick

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

CARRIED 9/0

 

 

9.               RECEIVING OF Petitions, Presentations AND DEPUTATIONS

Petitions

 

Nil

Presentations

 

Mr Malcom van Rensberg spoke in respect to Item 13.2 ‘Draft Dunsborough Lakes Structure Plan – Lot 9050 Clubhouse Drive, Dunsborough Lakes – Consideration for Final Approval’. Mr van Rensberg was opposed to the recommendation and sought further consideration by the City and / or the Department of Planning, Lands and Heritage in relation to Public Open Space.

Deputations

 

Nil

 

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

Nil

 


 

11.             Items brought forward

Adoption by Exception Resolution

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

 

COUNCIL DECISION

C1912/249              Moved Councillor P Carter, seconded Deputy Mayor K Hick

 

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

               

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

 

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

 

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

 

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

 

13.1        DRAFT ENERGY STRATEGY

 

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

 

13.4        CITY OF BUSSELTON BUSHFIRE MANAGEMENT PLAN

 

15.2        COMMUNITY BIDS 2019/2020 ROUND 2 ALLOCATIONS

 

16.1        PROPOSED LEASE DUNSBOROUGH AND DISTRICTS PROGRESS ASSOCIATION INC.

 

17.1        COUNCILLORS' INFORMATION BULLETIN

CARRIED 9/0

En Bloc

 


Council                                                                                      14                                                          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.

 

COUNCIL DECISION, COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

C1912/250              Moved Councillor P Carter, seconded Deputy Mayor K Hick

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.

CARRIED 9/0

En Bloc

 

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

51

11 December 2019

12.1

Attachment a

Access Housing Australia Ltd Rate Exemption Application Documentation

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Council                                                                                      55                                                          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”.

 

COUNCIL DECISION AND COMMITTEE RECOMMENDATION

C1912/251              Moved Councillor P Carter, seconded Deputy Mayor K Hick

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”.

CARRIED 9/0

En Bloc

 

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

100

11 December 2019

12.2

Attachment a

South West Counselling Inc. Rate Exemption Documentation

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


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

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

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.

 

COUNCIL DECISION, COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

C1912/252              Moved Councillor P Carter, seconded Deputy Mayor K Hick

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.

CARRIED 9/0

En Bloc

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

8/10/19

230.00

APVC Ltd / The Sebel

Accom. - Mayoral Prayer Guest Speaker

9/10/19

50.00

Reg Now Busselton Runner

Bsn Half Marathon - Sister City Participants

9/10/19

50.00

Reg Now Busselton Runner

Bsn Half Marathon - Sister City Participants

14/10/19

80.91

Reg Now Jetty Swim 2020

1 Mile Jetty Swim - Sister City Participant

16/10/19

179.89

Hertz Australia Melbourne

Car Hire - LGCOG Conference

*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                                                                                      130                                                        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 Committee at its meeting on 25 November 2019, the recommendations from which have been included in this report.

 

COUNCIL DECISION, COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

C1912/253              Moved Councillor P Carter, seconded Deputy Mayor K Hick

 

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

CARRIED 9/0

En Bloc

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 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

145

11 December 2019

12.6

Attachment a

Current Plan

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 



 



 


 


 


 


 


 


 




 




 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


Council

267

11 December 2019

12.6

Attachment b

Draft Plan

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



 


 



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



 


 



 


 


Council                                                                                      349                                                        11 December 2019

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  

                                                              

COUNCIL DECISION AND OFFICER RECOMMENDATION

C1912/254              Moved Councillor P Carter, seconded Deputy Mayor K Hick

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.

CARRIED 9/0

En Bloc

 

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

350

11 December 2019

13.1

Attachment a

Energy Strategy

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



 


 


 


 


 


 


 


 



 


 


 


 


 


Council

430

11 December 2019

13.1

Attachment b

Energy Strategy Summary Document

 


 


Council

434

11 December 2019

13.1

Attachment c

Cities for Power Partnership - The Partnership Action Pledge

 


 


 


 

 


Council                                                                                      441                                                        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  

 

COUNCIL DECISION AND OFFICER RECOMMENDATION

C1912/255              Moved Councillor P Carter, seconded Deputy Mayor K Hick

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.

CARRIED 9/0

En Bloc

 


 

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

442

11 December 2019

13.2

Attachment a

Endorsed Dunsborough Lakes Structure Plan

 


Council

443

11 December 2019

13.2

Attachment b

Location Plan

 


Council

444

11 December 2019

13.2

Attachment c

Proposed modifications relating to Lot 9050 Clubhouse Drive

 


Council

450

11 December 2019

13.2

Attachment d

Schedule of Submissions

 


 


 


 


 


 


Council

451

11 December 2019

13.2

Attachment e

Lot 9050 Clubhouse Drive & Lot 5000 Waterville Road

 


Council

452

11 December 2019

13.2

Attachment f

Schedule of Modifications

 


Council                                                                                      457                                                        11 December 2019

13.4           CITY OF BUSSELTON BUSHFIRE MANAGEMENT PLAN

STRATEGIC GOAL

3. ENVIRONMENT Valued, conserved and enjoyed

STRATEGIC OBJECTIVE

3.1 Development is managed sustainably and our environment valued.

SUBJECT INDEX

Fire and Emergency Services

BUSINESS UNIT

Environmental Services

REPORTING OFFICER

Manager Environmental Services - Tanya Gillett

AUTHORISING OFFICER

Director, Planning and Development Services - Paul Needham

NATURE OF DECISION

Choose an item.

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   City of Busselton Bushfire Risk Management Plan 2019-2024  

 

COUNCIL DECISION AND OFFICER RECOMMENDATION

C1912/256              Moved Councillor P Carter, seconded Deputy Mayor K Hick

That the Council:

1.    Endorse the City of Busselton Bushfire Risk Management Plan 2019-2024; and

2.    Supports the development and implementation of a coordinated, comprehensive, multi-agency Treatment Schedule in support of, and to be incorporated into, the Bushfire Risk Management Plan 2019-2024.

CARRIED 9/0

En Bloc

 

EXECUTIVE SUMMARY

The Emergency Management Act 2005 provides the head of power to direct local governments to comply with the requirements of the State emergency management policies. 

 

The State Hazard Plan – Fire (formally Westplan Fire) is an emergency management plan that requires local governments to develop a Bushfire Risk Management Plan. 

 

The City has now completed a Bushfire Risk Management Plan and this is presented for Council’s endorsement.

 

BACKGROUND

The DFES Bushfire Risk Management Branch was created in 2012 to respond to key recommendations from the Perth Hills fire (Keelty 1), Margaret River fire (Keelty 2) & the Waroona fire (Ferguson) inquiries. The Branch coordinates DFES Bushfire Risk Management Officers (BRMO’s) and DFES funded Bushfire Risk Planning Coordinators (BRPC’s) embedded in local governments to facilitate the creation of Bushfire Risk Management Plans.

 

The City joined the program in November 2017 with a BRPC shared with the Shires of Nannup and Augusta-Margaret River.  This shared arrangement, now with the Shires of Augusta-Margaret River and Capel, will continue until 30 June 2021 when the Treatment Schedule required to implement the Bushfire Risk Management Plan (BRMP) will be completed.

 

As per the Office of Bushfire Risk Management (OBRM) BRMP Guidelines, at the end of each financial year the City is required to prepare and submit a report to OBRM detailing progress against the BRMP, including the treatment implementation.

 

In addition, the Emergency Management Act 2005 provides the head of power to direct local governments to comply with the requirements of State emergency management policies where they are given a role within those policies. The State Hazard Plan – Fire requires local governments with a high or extreme bushfire risk to develop an integrated Bushfire Risk Management Plan utilising OBRM guidelines and templates to do so.

 

The City has now completed a Bushfire Risk Management Plan (BRMP) outlining a strategy to reduce bushfire related risk across all land tenures within the district.  The BRMP documents a coordinated and efficient approach towards identifying assets at risk from bushfire and their priority for treatment, which will be documented within a comprehensive Treatment Schedule that is currently being drafted.  “The Treatment Schedule sets out a broad program of coordinated multi-agency treatments to address risks identified in the BRMP” to help reduce the risk of bushfire to an acceptable level.

 

The draft City of Busselton BRMP was endorsed by OBRM on 25 July 2019 confirming that the document meets the standards required in accordance with ISO 31000 and the Guidelines – “Bushfire Risk Management Planning – Guidelines for Preparing a Bushfire Risk Management Plan”.

 

The City of Busselton BRMP 2019-2024 is attached and presented for Council endorsement.

OFFICER COMMENT

The BRMP has been prepared for the City based on a best practice template provided by OBRM.  Local information relating to the bushfire context is added for each local government, considering environment, weather, priorities and demographics. 

 

The identification of assets and calculation of bushfire risk has been conducted utilising the DFES specialist software Bushfire Risk Management System.  This software allows assets to be mapped in a Geographical Information System (GIS) and then completes an individual risk assessment based on the data entered.  Assets can be grouped with adjoining assets of the same category and with the same risk, to simplify the assessment process.  There are four categories of assets available, being Human Settlement, Economic, Environmental and Cultural. 

 

Human Settlement is the most significant asset type, referring to residential assets, with a separate sub category for Special Risk or Critical Infrastructure.  For the City, known tourism and short stay properties have been categorised as Special Risk, whilst the Busselton Regional Hospital is considered Critical Infrastructure. 

 

The Economic category has been utilised to record assets such as commercial, industrial and agricultural properties.  This category also includes tourism and recreational facilities, such as wineries and restaurants.

 

Environmental assets include flora and fauna habitat that are assessed as either Priority, Protected or of Local Importance.  It is recognised that much of the information for flora and fauna assets is not formally recorded and requires some local knowledge.  To this extent these attributes are expected to be recognised and included to a more specific extent (e.g. actual location of orchid species) during the implementation of the Treatment Schedule. Notwithstanding that, assets entered into the program include areas of known Western Ringtail Possum habitat. 

 

The Cultural category has been used to assess a variety of cultural assets broken down into sub categories of Aboriginal, Recognised, Local or Other.  As with environmental assets, Aboriginal assets and sensitivities will be included specifically during the planning of treatments through collaboration and consultation with the traditional owners of the land.  Other assets entered consist of heritage buildings, religious buildings such as churches and local community assets, such as community centres and sporting facilities.

The risk assessment process is slightly different for each category type, with the same Likelihood and Consequence formulae, but varying vulnerability calculators.  All categories take into account the fuel type (grassland, scrub, forest etc.), fuel age and separation distance (distance from the asset to the vegetation), as well as the slope under the vegetation and slope between the vegetation and the asset. 

 

Human Settlement and Cultural vulnerability is assessed merely as Low, Moderate or High.  Low for example, may indicate a higher level of community engagement and preparedness, better construction standards or water hydrants in the area.  For Economic assets the vulnerability is assessed as to the susceptibility of the asset to fire and the level of impact of damage to the asset, in local, regional or state – Critical Infrastructure terms. 

 

For Environmental assets, the assessment for vulnerability takes into consideration the conservation status (priority/threatened or local) and the geographical extent of the asset type (widespread, restricted or highly restricted).

 

A total of 952 groups of assets have been identified and risk assessed during the process.  The BRMP suggests treatments that are then required for all assets assessed as at High, Very High or Extreme Risk.  This equates to 79% of assets, or 750 groupings.  Of these assets, 42% or almost 400 groups have been assessed as at Extreme Risk, requiring urgent treatment action.

 

The BRMP has been reviewed by the Bushfire Risk Management Branch of DFES / Rural Fire Division.  Following review from DFES, the BRMP has also now been approved by OBRM, confirming that it meets their standards.

 

The BRMP now needs to be endorsed by the Council, which is to be followed by finalisation of the Treatment Schedule.  The Treatment Schedule is anticipated to be developed as an extensive 5 – 10 year dynamic treatment plan for all City tenure as well as interacting with other agencies and private land holders to mitigate risk on other tenure.

 

From 2016, following the Waroona Bushfire special inquiry from Euan Ferguson, DFES have had a significant shift in direction towards preparedness/mitigation and prevention aspects, in addition to their traditional focus on response.  There has been increasing support for the Bushfire Risk Management Branch, and BRMP’s being drafted within local government, the creation of the Rural Fire Division and the Bushfire Centre for Excellence.  These changes all acknowledge the significant cost of response operations both financially and environmentally, and the need for greater capacity building within communities by way of preparedness and mitigation strategies. 

 

The City is embracing this direction, ensuring a sustainability approach to mitigation works, with respect shown for the biodiversity values, utilising local knowledge and also incorporating traditional land management practices where appropriate.  As knowledge improves surrounding prescribed burning, the City has embraced contemporary techniques and incorporated stakeholders in the process to achieve the best outcomes possible for the environment and for hazard reduction and reducing the impacts of wild fire.

 

As the City completes the Treatment Schedule required as part of the BRMP and implements the plan over the next 5-10 years, the City can continue to show leadership by implementing contemporary fire management techniques, responsible land management, and encouraging private land owners to also manage their land responsibly (principally, through the City’s ‘bushfire notice’).


 

Statutory Environment

The Emergency Management Act 2005 provides the head of power to direct local governments to comply with the requirements of State emergency management policies where they are given a role within those policies as follows:

 

Section 20 (4) sets out that -

A public authority that is given a role and responsibilities under a State emergency management policy is to comply with the State emergency management policy. 

Relevant Plans and Policies

The State Hazard Plan – Fire, Section 2.2.7 requires the following:

LGs with high or extreme bushfire risk are required to develop an integrated BRMP outlining a strategy to treat or reduce bushfire related risk across all land tenures.

Data and information provided to the planning process must be in a defined form (OBRM BRMP Guidelines and template).

 

As per the OBRM BRMP Guidelines, at the end of each financial year the City is required to prepare and submit a report to OBRM detailing progress against the BRMP.

Financial Implications

DFES currently funds a Bushfire Risk Planning Coordinator (BRPC) for the City.  This position is currently shared with the Shires of Augusta-Margaret River and Capel on a 0.6/0.2/0.2 FTE ratio.  The BRPC is located at the City and supervised by City staff under a contract arrangement with DFES.  No further funding from DFES is anticipated for the BRPC position beyond 30 June 2021. 

 

The plan provides for a cyclical Treatment Schedule over a 5 – 10 year period.  City involvement will now increase during implementation of the BRMP (including stakeholder interaction, considering public and private land tenure and departments) and further resources will be required in this space.

 

Having an endorsed BRMP does allow the City to access the State government mitigation activity funding (MAF) grants available to all Local Governments.  The City of Busselton was successful in receiving a MAF grant for planned treatments of $331,500 for 2019/20, following the BRMP being accepted by OBRM.  The MAF grant is made available to implement treatment strategies on land managed by the local government.  Access to MAF funding is an important support that DFES has introduced to encourage the implementation of the BRMP’s endorsed by local governments. 

While these grants do include funding for contractors, the planning and control of all treatments completed remains the responsibility of the local governments, including coordination of contractors and stakeholder management across all interest groups and bush fire brigades involved in each treatment strategy.  Again this will require additional resources as the City’s Community Emergency Services Manager does not have the capacity to absorb the required workload to ensure that the BRMP is implemented as required.

Stakeholder Consultation

The Communication Strategy is included within the BRMP and includes the following objectives:

 

1.    Key stakeholders understand the purpose of the BRMP and their role in the bushfire risk management planning process.

2.    Stakeholders who are essential to the bushfire risk management planning process, or can supply required information, are identified and engaged in a timely and effective manner.

3.    Relevant stakeholders are involved in decisions regarding risk acceptability and treatment.

4.    Key stakeholders engage in the review of the BRMP as per the schedule in place for the local government area.

5.    The community and other stakeholders engage with the bushfire risk management planning process and as a result are better informed about bushfire risk and understand their responsibilities to address bushfire risk on their own land.

6.    Strengthen the objectives outlined within the Strategic Community Plan and enhancing the ability of the City to be bushfire prepared and ready.

 

Consultation and assistance has been provided through DFES, OBRM and the Bushfire Risk Management Branch of DFES.  External consultation with State Government agencies including environmental and land management expertise from DBCA Parks and Wildlife have been taken into consideration.

 

Further significant internal and external consultation will be undertaken in developing the Treatment Schedule.  This consultation will include liaising on all treatments with local Bushfire Brigades, friends of volunteer groups, local traditional owners of the land, DBCA and DFES experts in environmental and fire management. 

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.

 

While the officer recommendation serves to assist the City to provide treatments and controls for the risks identified within the BRMP, the risk of wildfire will always remain within the District.  The BRMP will identify those areas that remain at high bushfire risk and where planned mitigation works are required. Implementation of the BRMP will not remove the risk but will assist the City to highlight areas where work with landowners is required to decrease the bushfire risk.  Implementation of the BRMP Treatment Schedule will assist to reduce the impact of bushfire on areas that mitigation measures have been implemented. Not adequately resourcing implementation of the BRMP could, however, create significant reputational risk for the City, and should therefore be avoided.

CONCLUSION

The City of Busselton BRMP has now been completed.  It provides a strategy to reduce bushfire related risk across all land tenures within the district.  The BRMP documents a coordinated and efficient approach towards identifying assets at risk from bushfire and their priority for treatment, which will be documented within a comprehensive Treatment Schedule that is currently being drafted. 

 

The City of Busselton BRMP 2019-2024 is attached and presented for Council endorsement.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The development of the BRMP Treatment Schedule is underway as the implementation component of the BRMP.  OBRM preference is for the Treatment Schedule to be completed within six months of the BRMP being endorsed by the Council. 

 


Council

497

11 December 2019

13.4

Attachment a

City of Busselton Bushfire Risk Management Plan 2019-2024

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



 


 


 


 


 


 


 

 


Council                                                                                      510                                                        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

                                                             

COUNCIL DECISION AND OFFICER RECOMMENDATION

C1912/257              Moved Councillor P Carter, seconded Deputy Mayor K Hick

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

PROJECT TITLE

ALLOCATION

SPECIAL CONDITIONS

1

Busselton Hospice

Community Outreach Program

$5,000

One off funding to establish the program

2

Dunsborough Coast and Land Care

Dugulup Brook Restoration

$4,995

 

3

Naturaliste Family Playgroup

Nature Play Rejuvenation

$4,000

 

4

Rotary Club of Busselton Geographe Bay

Busselton City and Heritage augmented reality tour

$5,000

 

5

Undalup Association

Waljin Garden

$3,574

 

6

Yallingup Board Riders Club

PA System

$1,250

The PA system to be made available to other groups

7

Dunsborough Bay Yacht Club

Learn to Sail – Pacer Sails

$8,000

Note: Plus $1000 from Round 1 (19/20) funding to purchase of sails as per recommendation 3 below

8

Dunsborough Football Club

John Edwards Pavilion Change room Upgrades

$10,000

 

9

Busselton Repertory Club

Weld Theatre electrical upgrade

$22,080

 

10

Busselton Netball Association

Netball Goal posts, pads and fence

$8,500

 

 

 

Total

$72,399

 

 

2.         Agrees to the Dunsborough Bay Yacht Club using the remaining $1,000 allocated from round one of the 2019/2020 Community Bids program to purchase sails for the learn to sail program.

CARRIED 9/0

En Bloc

 

EXECUTIVE SUMMARY

Each year the City of Busselton provides financial assistance to community groups and not-for profit organisations through the Community Bids funding program. This assistance is provided for specific activities or projects proposed to be undertaken by that group or organisations within the forthcoming financial year.

 

This report provides a summary of the outcomes from a Councillor workshop on 13 November 2019, and seeks formal endorsement of the Community Bid submissions to be funded in the second round of the 2019/20 financial year.

 

BACKGROUND

In March 2011, the Council resolved (C1103/097) to allocate funding to the Community Bids program as follows:

 

1.    Council allocate a total of 0.5% of estimated rates to be levied to Major Project Assistance Grants to be determined as part of the Community Bids assessment process advertised in the first quarter of each year.

 

2.    Allocate a total of $50,000 to Minor Project Assistance Grants to be determined twice each year, once as part of the Community Bids process, and once again in September each year.

 

3.    Increases the maximum amount of Minor Project Assistance Grants from $3,000 to $5,000 for any one project.

 

 

Applications for the second round of Community Bids funding for the 2019/20 financial year opened in October 2019 and a total of thirteen (13) applications were received, including seven (7) minor bid applications requesting a total of $27,267 in funding and six (6) major bid applications requesting $91,230.

 

Applications were assessed by an officer working group, in accordance with Community Bids guidelines, and recommendations were discussed with Councillors at a workshop held on 13 November 2019. The outcomes of the workshop form the basis of the officer recommendations in this report.


 

OFFICER COMMENT

Applications were assessed using the following criteria:

 

•    Does the project, program or activity meet the Community Bids criteria?

•    Has the applicant outlined why the projects, programs or activities are needed by the community?

•    Is there an expectation or risk to the community if the project, program or activity does not proceed?

•    Did the organisation or group state the level of cash or in kind contribution they will make to the project, program or activity?

•    Has the applicant demonstrated attempts at seeking funding from other sources?

•    Has the applicant been successful in previous community bids applications and what was the funded amount?

•    Does the project align with the City of Busselton's Strategic Community Plan?

 

Officers presented the applications to Councillors at a workshop on 13 November 2019, where the following recommendations were made:

 

 

APPLICANT

PROJECT TITLE

REQUEST

RECOMMENDATION

SPECIAL CONDITIONS

MINOR APPLICATION

1

Busselton Hospice

Community Outreach Program

$5,000

$5,000

On off funding to establish the program

2

Dunsborough Coast and Land Care

Dugulup Brook Restoration

$4,995

$4,995

 

3

Dementia Support Network of WA

Dementia Education Workshops

$3,448

$0

 

4

Naturaliste Family Playgroup

Nature Play Rejuvenation

$4,000

$4,000

 

5

Rotary Club of Busselton Geographe Bay

Busselton City and Heritage augmented reality tour

$5,000

$5,000

 

6

Undalup Association

Waljin Garden

$3,574

$3,574

 

7

Yallingup Board Riders Club

PA System

$1,250

$1,250

The PA system to be made available to other groups

 

 

Total

$27,267

$23,819

 


 

 

APPLICANT

PROJECT TITLE

REQUEST

RECOMMENDATION

SPECIAL CONDITIONS

MAJOR APPLICATION

1

Busselton Chamber of Commerce

Capes Connect Business Hub

$30,000

$0

 

2

Dunsborough Bay Yacht Club

Learn to Sail – Pacer Sails

$9,000

$8,000

Note: Council approve change of purpose of $1000 from Round 1 19/20 funding to purchase of sails.

3

Dunsborough Football Club

John Edwards Pavilion Change room Upgrades

$10,000

$10,000

 

4

Busselton Repertory Club

Weld Theatre electrical upgrade

$22,080

$22,080

 

5

Busselton Netball Association

Netball Goal posts, pads and fence

$8,500

$8,500

 

6

Busselton Senior Citizens Centre

Program equipment

$11,650

$0

 

 

 

Total

$91,230

$48,580

 

*Dunsborough Bay Yacht Club have $1000 remaining from round 1 of the 2019/20 Community Bids and seek Council’s approval to change the purpose of the original allocation to purchase sails for the learn to sail program.

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 Community Bids funding program is an opportunity for community based organisations to seek assistance to implement initiatives that benefit the wider community and is a program contained within the City of Busselton Corporate Business Plan 2018-2022.

Financial Implications

Based on the current funding model, the total funds available for allocation for round two (2) of the 2019/20 Community Bids program is $72,399. The proposed funding allocations for minor and major projects detailed in the officer recommendation totals $72,399.

 

Stakeholder Consultation

The Community Bids funding program was advertised in the Council for the Community page on 25 September 2019, 2 October 2019 and 9 October 2019, and on the City of Busselton website. Recognised community groups and sporting clubs in the City of Busselton were also notified of the Community Bids process via email.

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

Council may wish to consider different levels of funding proposed for all or some of the Community Bids applications.

CONCLUSION

The Community Bids funding program is constantly evolving and aims to meet community needs, with funding available to further priority goals and objectives identified in the City of Busselton Strategic Community Plan 2017.

 

It is recommended that Council adopts the funding allocations as outlined in the officer recommendation.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

All Community Bid applicants will be individually advised in writing of the outcome of the Council decision within 21 days. Successful applications will be required to sign a grant agreement with the City and meet any specific conditions of funding. City officers will continue discussions with applicants regarding other grant funding opportunities.

 


Council                                                                                      515                                                        11 December 2019

16.             Finance and Corporate Services Report

16.1           PROPOSED LEASE DUNSBOROUGH AND DISTRICTS PROGRESS ASSOCIATION INC.

STRATEGIC GOAL

STRATEGIC OBJECTIVE

6. LEADERSHIP Visionary, collaborative, accountable

6.4 Assets are well maintained and responsibly managed.

SUBJECT INDEX

Agreements and Contracts

BUSINESS UNIT

Corporate Services

REPORTING OFFICER

Property Coordinator - Ann Strang

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   Plan Lot 183 and Lot 300 Dunsborough Hall Site  

 

COUNCIL DECISION AND OFFICER RECOMMENDATION

C1912/258              Moved Councillor P Carter, seconded Deputy Mayor K Hick

That the Council:

1.         Authorises the CEO to enter into a lease with the Dunsborough and Districts Progress Association Incorporated for a portion of Lot 183, Reserve 23854, shown outlined in black bold on Attachment A being the Hall and Store rooms, subject to the following;

(a)       The term of the lease to be 5 years commencing 1 January 2020, with a further 5 year option;

(b)       The rent to commence at $225.00 inclusive of GST per annum and increased by $5.00 on each anniversary;

(c)       The lease will be consistent with the City’s standard community and sporting group lease altered to reflect the obligation of the City to maintain the structural integrity of the Dunsborough Hall that forms part of the lease;

(d)       The permitted use will allow the tenant to hire the premises to other community groups and not for profit groups, with the tenants to ensure that their insurance covers such use;

(e)       The inclusion of a licence for non-exclusive use of the shared use areas shown hatched on the Attachment A; and

(f)        All the costs of the preparation of the lease are to be met by the Tenant.

CARRIED 9/0

En Bloc

 

EXECUTIVE SUMMARY

The Dunsborough Hall (Hall) is located on Lot 183, H44 Gifford Road, Dunsborough. The Dunsborough and Districts Progress Association Incorporated (DDPA) have managed the bookings of the Hall for many years without any formal arrangement. The purpose of this report is to seek Council’s endorsement to enter into a lease with the DDPA to formalise their use and management of the Hall. This report also addresses the use of the store rooms, ablutions, car parking, decking and access ways on the land and the adjoining land.  

 

BACKGROUND

The Hall was constructed in the late 1950’s and is located on a portion of Lot 183, Reserve 23854 which is crown land vested with the City for the purpose of ‘Hall Site’.  Lot 183, abuts Lot 300, being Part Reserve 34894 which is crown land vested with the City for the purpose of “Recreation”.   The driveway and car parking for the Hall is located on a portion of Lot 300.

 

The City has the power to lease or licence any part of both Reserves for any term not exceeding 21 years, subject to the consent of the Minister for Lands. 

 

The DDPA became incorporated in 1989. They are a community, volunteer-run organisation that engage the community and provide a voice for the community.  They have also actively managed the bookings of the Hall. The Hall is used by a number of community groups and for a varied number of events each year.  The DDPA retain the income from these bookings.  The income generated from the Hall hire supports funding of local events and projects run by the DDPA.  There is currently no formal arrangement in place for the management of the Hall, thus no clear guidelines as to who is responsible for costs such as maintenance, insurance and outgoings. 

 

Whilst the DDPA have contributed towards cleaning and minor maintenance, the City has been responsible for the majority of building works costs and outgoings.  Based on asset management principles, community use factors and optimisation of Council’s investment a report was presented to Council in late August 2012, recommending that the Council undertake capital works on the Hall and other associated infrastructure.  The Council resolved (C1208/244) to allocate $288,000 from the Building Reserve Fund towards this.  This report also identified further funds being allocated in later years.  The works programme included new ablutions, structural repairs to the roof, connection to deep sewer and modification to disabled access.  

 

In August 2014, a report was presented to Council in relation to the management of eight community halls within the District.  Council resolved (C1408/214) to retain the Vasse Newtown and Yallingup Halls and enter into a lease with the groups managing them at the time. The Hall was not considered as part of this report as it was the subject of the earlier report to Council whereby it was resolved to undertake substantial building works.  At that time the DDPA were not keen to enter into any formal agreements with the City until all works had been completed. 

 

With the works mentioned above now completed, it is recommended that a formal arrangement is put in place for the management of the Hall.  As with the resolution for both the Vasse Newtown and Yallingup Halls that the parties managing the halls be offered a lease, it is recommended that the City enter into a lease with the DDPA for the Hall and storage rooms, as shown outlined in black bold on Attachment A. 

 

OFFICER COMMENT

As mentioned above, the DDPA do not currently have any formal tenure of the Hall, nor are there any clear guidelines in place in relation to the management of the Hall.   The City currently exercises no control over the bookings and use of the Hall.  Whilst there have been no known major incidences reported, this may not always be the case.  By not having any formal agreement in place there is a liability risk for the City if an incident/accident occurred from such use.

 

The City appreciates the time and resources the DDPA commits to managing the bookings of the Hall, thus all funds generated from this have been retained by them. They also have the ability to utilise the Hall for their association activities as the need arises. The groups managing the bookings of the Vasse Newtown and Yallingup Hall were in the same situation and the Council resolved to enter into leases with these groups.  The Vasse and Districts Community Centre entered into a lease in 2014, however, the Yallingup Committee relinquished the management of the Yallingup Hall with the bookings now being managed by the City. 

The DDPA have resisted entering into a lease in the past as they were concerned with the ongoing obligations associated with this.  After several years of negotiations they have now indicated that they will enter into a Lease, subject to the City being responsible for the structural components of the Hall. 

It is proposed that exclusive use is granted to the DDPA over the Hall and the two storage rooms.  It is recommended that the City enter into the standard community and sporting group lease agreement with the DDPA, however, given the age of the Hall and recent resolutions in relation to other District halls, it is recommended that the maintenance obligation in this lease is such that the City is responsible for any structural repairs of the Hall.  The DDPA would be fully responsible for the upkeep of the storage rooms.

It is also proposed that the permitted use of the Hall will be for purposes consistent with the objectives of the DDPA’s constitution. The lease will include provisions that require the DDPA to make the Hall available for short term hire by community and not for profit organisations. The use of the Hall will at all times be subject to any conditions or restrictions imposed by the City or the Minister for Lands to ensure use of the Hall is consistent with the designated Reserve purpose and compliant with the Management Orders.

The Dunsborough Art Society (DAS) exclusively use the building shown as the Adjoining Premises on Attachment A. The DDPA have had a long association with the DAS of sharing the access ways, parking and the ablution facilities, shown hatched on Attachment A.  This has been on an informal arrangement between the two parties.   The DAS lease includes a non-exclusive licence over these shared use areas.  It is proposed that this is included in the DDPA lease.  The licence will be conditional on the DDPA in conjunction with the DAS to clean, maintain and contribute towards the outgoings for these areas. 

The proposed term of the lease is five (5) years plus an option for a further five (5) years.  This is consistent with leases granted to community groups in similar situations and provides flexibility for the DDPA to either continue to manage the Hall or terminate their agreement at the end of first term should the management of the Hall become too onerous.

 

Statutory Environment

When disposing of property whether by sale, lease or other means, a Local Government is bound by the requirement of section 3.58 of the Local Government Act which requires giving local public notice when disposing of property.  There are exemptions to this process under Regulation 30(2)(b)(i) and (ii) of the Local Government (Functions & General) Regulations which states “disposal of land to incorporated bodies with objects of benevolent, cultural, educational or similar nature and the member of which are not enlisted to receive any pecuniary profit from the body’s transactions, are exempt from the advertising and tender requirements of section 3.58 of the Local Government Act”.  The constitution of the Dunsborough and Districts Progress Association Incorporated (DDPA) is such that this exemption applies.

 

The land on which the Hall is located is within Reserve 23854, Lot 183, Deposited Plan 180618, Volume LR3138, Folio 718, being Crown Land vested with the City for the purpose of Hall Site.  The land on which the driveway is located is within Part Reserve 34894, Lot 300, Deposited Plan 53040, Volume LR3139, Folio 596, being Crown Land vested with the City for the purpose of Recreation.  Both parcels of land are vested in the City under Management Orders which currently confer power to lease or licence for periods up to 21 years, subject to the consent of the Minister for Lands.

Under Section 18(2) of the Land Administration Act 1997, approval of the Minister for Lands is required for a lease on a Crown Reserve.  Additionally the lease is to be lodged with Landgate in accordance with the Transfer of Land Act 1893 (TLA).

Relevant Plans and Policies

The recommendation to enter into a lease with the DDPA is generally consistent with the principles of the Leases of City Land and Buildings Policy, adopted by Council on the 27 July 2016.

 

Leases to not for profit, community and sporting groups will generally require the tenant to meet the full cost of maintenance and repair of the buildings and facilities leased as well as the costs of utilities and insurance.  Due to the nature of the management structure and the age of the Hall it is proposed that the City would maintain the structural integrity of the Hall, however the DDPA will be fully responsible for the maintenance of the store rooms.  

 

Financial Implications

The rent applied to community and sporting groups leasing City owned or managed land is currently $225.00 per annum increased by $5.00 on each anniversary (all amounts are inclusive of GST).   It is proposed that this annual rent be charged to the DDPA.

The standard community lease terms include requirements for the tenants to pay outgoings including services and insurance as well as meet the cost of maintenance and repair of the buildings, including structural repairs.  As mentioned previously, it is proposed that the City retain responsibility for the structural integrity of the Hall throughout the term of the lease.

Although there is no agreement in place, the DDPA have undertaken minor repairs and contributed towards electricity and water. With a lease in place the DDPA will be responsible for other outgoings such as sewer rates and building insurance.  The DDPA are aware of the current costs associated with this.

 

Stakeholder Consultation

Over the past eight years, City Officers have attended a number of committee meetings with both the DDPA and DAS to discuss the proposed leases in particular the need to formalise both parties use of the shared use areas and the DDPA’s management of the Hall.

DDPA continued to express their concerns with regards to having to fund the general maintenance and outgoings obligations should they enter into a lease.  Whilst their preference initially was to retain the status quo, they have since agreed to enter into a lease, conditional on the City retaining responsibility for the structural maintenance.  

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:

1.    resolve to enter into a shorter or longer term lease not exceeding 21 years. However given the age of the Hall a longer term is not recommenced as a review of the condition of the Hall would be recommended in 10 years.

2.    resolve to enter into a lease that renders the DDPA responsible for the structural repairs of the Hall.

CONCLUSION

The granting of a lease to the DDPA is in keeping with the leasehold arrangements the City have with the Vasse District and Community Centre over the Vasse Newtown Hall.  The lease will formalise and document the responsibility for management and maintenance of the Hall, store rooms and shared use areas.

 

It is therefore recommended that Council enter into the proposed leases on the terms and conditions detailed in the Officer Recommendation.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

It is anticipated that the Lease will be forwarded to the Minister for Lands for approval following the resolution of Council.  It is anticipated that the Lease will be fully executed by the 1 January 2020.

 


Council

516

11 December 2019

16.1

Attachment a

Plan Lot 183 and Lot 300 Dunsborough Hall Site

 

 


Council                                                                                      518                                                        11 December 2019

17.             Chief Executive Officers Report

17.1           COUNCILLORS' INFORMATION BULLETIN

STRATEGIC GOAL

6. LEADERSHIP Visionary, collaborative, accountable

STRATEGIC OBJECTIVE

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

SUBJECT INDEX

Councillors' Information Bulletin

BUSINESS UNIT

Executive Services

REPORTING OFFICER

Reporting Officers - Various

AUTHORISING OFFICER

Chief Executive Officer - Mike Archer

NATURE OF DECISION

Noting: the item does not require a decision of Council and is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Current SAT Reviews  

 

COUNCIL DECISION AND OFFICER RECOMMENDATION

C1912/259              Moved Councillor P Carter, seconded Deputy Mayor K Hick

 

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

17.1.1       State Administrative Tribunal Reviews 

17.1.2       South West Zone WALGA Meeting 22 November 2019

CARRIED 9/0

En Bloc

 

EXECUTIVE SUMMARY

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

 

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

INFORMATION BULLETIN

17.1.1       State Administrative Tribunal Reviews 

 

Information is provided at attachment A.

17.1.2       South West Zone WALGA Meeting 22 November 2019

 

Key points raised at the South West Zone WALGA meeting held in Manjimup:

·    That Cr. Dean from Nannup was elected as President and Cr. Bennett was elected as Deputy;

·    That a working group will be appointed by the President to produce an options paper to the next Zone meeting for the consideration of the zone secretary replacement;

·    The issue of Financial Ratio’s was raised within the State Council Agenda. An alternate motion was put that states:

 


 

That WALGA advocate for a complete review of Government Financial Management Regulations in consultation with the Auditor General’s office, with consideration of:

·    Bands of local government to reflect the diversity of local government operations across the state.

·    Calculation methods including inclusions and exclusions of grant funding and expenditure

·    Fluctuations from year to year

 

Meeting minutes are accessible via the Councillor hub under the WALGA meetings tab.

 


Council

519

11 December 2019

17.1

Attachment a

Current SAT Reviews

 

 


Council                                                                                      523                                                        11 December 2019

ITEMS TO BE DEALT WITH BY SEPARATE RESOLUTION (WITHOUT DEBATE)

 

At this juncture, the Mayor sought approval and Council agreed that the below reports, which require an absolute majority of Council, including the Committee Recommendations, will be adopted en bloc, i.e. all together:

COUNCIL DECISION

C1912/260              Moved Councillor J Barrett-Lennard, seconded Councillor S Riccelli

That the Committee Recommendations in relation to the Agenda Items 12.3 and 12.5 be carried en bloc:

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

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

CARRIED 9/0

en BLOC

BY ABSOLUTE MAJORITY

 


 

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.

COUNCIL DECISION, COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

C1912/261              Moved Councillor J Barrett-Lennard, seconded Councillor S Riccelli

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

CARRIED 9/0

En Bloc

BY ABSOLUTE MAJORITY

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                                                                                      533                                                        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.

 

COUNCIL DECISION, COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

C1912/262              Moved Councillor J Barrett-Lennard, seconded Councillor S Riccelli

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

CARRIED 9/0

En Bloc

BY ABSOLUTE MAJORITY

 


 

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 t