COB-RGB

 

 

 

 

 

Council Agenda

 

 

 

22 April 2020

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 22 April 2020

 

 

 

TO:                  THE MAYOR AND COUNCILLORS

 

 

NOTICE is given that a meeting of the Council will be held via electronic means on Wednesday, 22 April 2020, commencing at 5.30pm.

 

Your attendance is respectfully requested.

 

 

DISCLAIMER

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

 

 

 

Mike Archer

 

CHIEF EXECUTIVE OFFICER

 

9 April 2020


CITY OF BUSSELTON

Agenda FOR THE Council MEETING TO BE HELD ON 22 April 2020

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

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

2....... Attendance. 5

3....... Prayer. 5

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

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

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

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

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

Previous Council Meetings. 5

8.1          Minutes of the Council Meeting held 25 March 2020. 5

8.2          Minutes of the Special Council Meeting held 1 April 2020. 5

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

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

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

12..... Reports of Committee. 6

13..... Planning and Development Services Report. 7

13.1        PROPOSED SCHEME AMENDMENT 43 TO LOCAL PLANNING SCHEME 21 - PART OF LOT 22 BUSSELL HIGHWAY, YALYALUP - CONSIDERATION FOR ADOPTION FOR PUBLIC CONSULTATION.. 7

13.2        CLIMATE CHANGE POLICY STATEMENT AND DECLARATION.. 42

14..... Engineering and Work Services Report. 69

15..... Community and Commercial Services Report. 70

15.1        BUSSELTON HOCKEY ASSOCIATION INC. SELF-SUPPORTING LOAN AGREEMENT. 70

15.2        ECONOMIC DEVELOPMENT BUSINESS SUPPORT PROGRAM.. 74

16..... Finance and Corporate Services Report. 87

16.1        LIST OF PAYMENTS MADE - FEBRUARY 2020. 87

16.2        FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 29 FEBRUARY 2020. 96

16.3        LOCAL GOVERNMENT HOUSE TRUST - DEED OF VARIATION.. 135

16.4        2019/20 BUDGET REVIEW... 150

16.5        PROPOSED NEW RATES PAYMENT OPTIONS. 156

17..... Chief Executive Officers Report. 159

17.1        COUNCILLORS' INFORMATION BULLETIN.. 159

18..... Motions of which Previous Notice has been Given.. 167

19..... urgent business. 167

20..... Confidential Matters. 168

21..... Closure. 168

 


Council                                                                                      5                                                                        22 April 2020

 

1.               Declaration of Opening and Announcement of Visitors

 

2.               Attendance 

Apologies

 

Approved Leave of Absence

 

Nil

 

3.               Prayer

 

4.               Application for Leave of Absence  

 

5.               Disclosure Of Interests

 

6.               Announcements Without Discussion

Announcements by the Presiding Member 

 

7.               Question Time For Public

Response to Previous Questions Taken on Notice 

Public Question Time For Public

 

8.               Confirmation and Receipt Of Minutes 

Previous Council Meetings

8.1             Minutes of the Council Meeting held 25 March 2020

Recommendation

That the Minutes of the Council Meeting held 25 March 2020 be confirmed as a true and correct record.


8.2             Minutes of the Special Council Meeting held 1 April 2020

Recommendation

That the Minutes of the Special Council Meeting held 1 April 2020 be confirmed as a true and correct record.

 

9.               RECEIVING OF Petitions, Presentations AND DEPUTATIONS

Petitions

Presentations

Deputations

 

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

 

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


12.             Reports of Committee

Nil


Council                                                                                      9                                                                        22 April 2020

13.             Planning and Development Services Report

13.1           PROPOSED SCHEME AMENDMENT 43 TO LOCAL PLANNING SCHEME 21 - PART OF LOT 22 BUSSELL HIGHWAY, YALYALUP - CONSIDERATION FOR ADOPTION FOR PUBLIC CONSULTATION

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

Town Planning Schemes and Amendments

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   Draft Provence Structure Plan

Attachment b    Location Plan

Attachment c    Existing and proposed zoning

Attachment d   Local Planning Strategy

Attachment e    Noise modelling technical report

Attachment f    Forecast N-contours  

 

OFFICER RECOMMENDATION

That the Council:

1.         In pursuance of the Planning and Development (Local Planning Schemes) Regulations 2015, initiates Amendment 43 to Local Planning Scheme 21 for the purposes of:

a)    Rezoning part of Lot 22 Bussell Highway, Yalyalup from ‘Tourism’, ‘Special Use 15 (Road Purposes)’ and ‘Reserve for Recreation’ to ‘Special Use 27 (Yalyalup Development)’.

b)    Rezoning part of Lot 76 Neville Hyder Drive, Yalyalup from ‘Special Use 15 (Road Purposes)’ to ‘Special Use 27 (Yalyalup Development)’.

c)    Deleting Special Provision Area 10.

d)    Amending Schedule 3 – ‘Special Provision Areas’ by including, under the ‘Particulars of Land’ column of ‘Special Provision Area 23’, the following text: “part of Lot 22 Bussell Highway and part of Lot 76 Neville Hyder Drive, Yalyalup” and deleting ‘Special Provision Area 10’.

e)    Amending the boundary of Special Provision Area 23 to include part of Lot 22 Bussell Highway and part of Lot 76 Neville Hyder Drive, Yalyalup.

f)     Amending the Scheme Map accordingly.

 

2.         Pursuant to Regulation 35(2) of the Planning and Development (Local Planning Schemes) Regulations 2015, determine that Amendment 43 is a ‘standard’ amendment in accordance with Regulation 34(b) as it:

a)    is consistent with the Local Planning Strategy 2019.

b)    would have minimal impact on land in the Scheme area that is not the subject of the Amendment.

c)    would not result in any significant environmental, social, economic or governance impacts on land in the Scheme area.

3.         That, as the draft Amendment is in the opinion of the Council consistent with Part V of the Act and Regulations made pursuant to the Act, that upon the preparation of the    necessary documentation, the draft Amendment be referred to the Environmental Protection Authority (EPA) as required by the Act, and on receipt of a response from the EPA indicating that the draft Amendment is to be subject to formal environmental assessment, be advertised for a period of 42 days, in accordance with the Planning and Development (Local Planning Schemes) Regulations 2015. In the event that the EPA determines that the draft Amendment is to be subject to formal environmental assessment, this assessment is to be prepared prior to advertising of the draft Amendment.

 

EXECUTIVE SUMMARY

The Council is requested to consider initiating and adopting proposed Amendment 43 to Local Planning Scheme 21 (LPS21) for public consultation. The Amendment proposes to rezone part of Lot 22 Bussell Highway, Yalyalup from ‘Tourism’, ‘Special Use 15 (Road Purposes)’ and ‘Reserve for Recreation’ to ‘Special Use 27 (Yalyalup Development)’ and include the land within ‘Special Provision Area 23’. The Amendment would facilitate the future subdivision and development of the land for residential purposes as part of the ongoing development of the Provence Estate.

 

It is recommended that Amendment 43 to LPS21 be initiated and adopted for public consultation.

 

BACKGROUND

The Amendment 43 land is subject to the draft Provence Structure Plan (adopted for final approval under delegated authority on 29 April 2019) that is pending endorsement by the WAPC (Attachment A). The subject land was included in the structure planning analysis and design process to ensure a seamless and cohesive design with the balance of the landholdings within Provence. The subject land is identified on the draft Structure Plan as requiring rezoning via a separate Scheme amendment to facilitate residential development.

 

The draft Structure Plan was supported by a suite of technical assessments that addressed the following matters: environment; local water management; bushfire risk management; retail demand; transport and traffic; landscape; noise and servicing. A new Bushfire Management Plan and an updated Environmental Assessment Report have been submitted in support of Amendment 43 and are discussed below.

 

The Proposal

The subject land is approximately 40 hectares in area and is located 5km south east of the Busselton City Centre (Attachment B). The majority of the subject land is cleared and undeveloped.

Amendment 43 proposes to:

i.      Rezone part of Lot 22 Bussell Highway, Yalyalup from ‘Tourism’, ‘Special Use 15 (Road Purposes)’ and ‘Reserve for Recreation’ to ‘Special Use 27 (Yalyalup Development)’.

ii.     Rezone part of Lot 76 Neville Hyder Drive, Yalyalup from ‘Special Use 15 (Road Purposes)’ to ‘Special Use 27 (Yalyalup Development)’.

iii.    Delete Special Provision Area 10.

iv.   Amend Schedule 3 – ‘Special Provision Areas’ by including the subject land in Special Provision Area 23.



Existing and proposed zoning maps are provided at Attachment C.

Bushfire Management Plan

Parts of the subject land are designated ‘bushfire prone’ on the State Map of Bushfire Prone Areas. In response a Bushfire Management Plan (BMP) has been prepared for the proposal by a suitably qualified fire consultant in accordance with the WAPC State Planning Policy 3.7 – Planning in Bushfire Prone Areas 2015/Guidelines for Planning in Bushfire Prone Areas 2017. An assessment of the composition of the vegetation and the slope of the land under that vegetation was conducted for a minimum 150m from the edge of the Amendment area. The assessment determined the effective slope as ‘Upslope/Flat’ with vegetation classified as ‘Class A – Forest’, ‘Class B – Woodland’ and ‘Class G – Grassland’ and a resultant bushfire attack level (BAL) of 29 or lower for the majority of the site.

 

The BAL assessment determined that classified vegetation to the west of the subject land (within the current undeveloped Provence landholdings) would result in a minor encroachment of BAL-40/BAL-FZ along the boundary of some of the future residential cells. The BMP states that the progressive development of the adjacent Provence land and implementation of the BMP for that land would result in a reduced and compliant BAL-29 rating or lower for the subject land.

 

Environmental Assessment Report

The environmental assessment covers the following aspects of the subject land:

 

Flora and vegetation survey

No Threatened or Priority species/communities were recorded within the Structure Plan area. The

condition of remnant vegetation was assessed as ‘Completely Degraded’, ‘Degraded’ and ‘Degraded-Good’. Areas of remnant vegetation, comprising Blackbutt/Flooded Gum/Peppermint woodland, in the northern portion of the subject land, will be retained in public open space. The subject land does not contain habitat suitable for the Western Ringtail Possum.

 

Fauna survey

No evidence (dreys, scats) or sightings of Western Ringtail Possum were recorded. No black cockatoo species were seen or heard during the surveys and no signs of feeding or feathers were recorded. Better quality habitat exists in the Tuart Forest National Park (2 km north-east) and other state forests nearby (10 km south). Since the broader area contains a large amount of potential habitat, the assessment concluded it is unlikely that black cockatoos are reliant on remnant vegetation on the subject land.

OFFICER COMMENT

Amendment 43 would facilitate the future subdivision and development of part of Lot 22 Bussell Highway, Yalyalup as part of the ongoing development of the Provence Estate.

 

A fundamental consideration for the proposal relates to the potential for conflict between the operations of the Busselton Margaret River Airport and residential development. Recent modelling commissioned by the City has updated previous noise assessments to align with changes in forecast usage and aircraft type assumptions set out in the business case for the redevelopment and upgrading of the Airport and as required by the Busselton Margaret River Airport Noise Management Plan

 

This modelling clearly indicates that development outside of the current Airport Special Control Area under LPS21 should not be affected by noise above the thresholds established by the approved Noise Management Plan for the Airport. As such, there is no need for any special controls or similar for future development within Provence, including the eastern extension that would be enabled by Amendment 43, to safeguard future residents from excessive noise intrusion, as well as protect all airport operations.

 

Statutory Environment

The key elements of the statutory environment in relation to Amendment 43 are set out in the Planning and Development Act 2005 and the Planning and Development (Local Planning Schemes) Regulations 2015. Each is discussed under appropriate subheadings.

 

Planning and Development Act 2005

The Planning and Development Act 2005 outlines the relevant considerations when preparing and amending local planning schemes. The relevant provisions of the Act have been taken into account in preparing and processing this Amendment.

 

Planning and Development (Local Planning Schemes) Regulations 2015

The Planning and Development (Local Planning Schemes) Regulations 2015, which came into operational effect on 19 October 2015, identifies three different levels of amendments – basic, standard and complex.  The resolution of the local government is to specify the level of the amendment and provide an explanation justifying this choice.  This Amendment is considered to be a ‘standard’ amendment.

Relevant Plans and Policies

The key policy implications with respect to the proposal are set out in the following documents:

 

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

·    State Planning Policy 3.7 – Planning in Bushfire Prone Areas (2015)/Guidelines for Planning in Bushfire Prone Areas (2017).

·    Local Planning Strategy (2019)

·    Local Tourism Planning Strategy (2011)

·    Draft Provence Structure Plan (2019)

·    Busselton Margaret River Airport Noise Management Plan (2019)

·    Busselton Margaret River Noise Modelling Technical Report (2019)

 

Each is discussed below under appropriate subheadings.

 

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

SPP 3 sets out the principles and considerations which apply to planning for urban growth and settlement in Western Australia. The overall aim of the policy is to facilitate sustainable patterns of urban growth and settlement and effective protection of the environment. The policy cites five objectives to achieve this outcome. The following objectives of the policy are relevant to the consideration of Amendment 43:

·    To promote a sustainable and well planned pattern of settlement across the State, with sufficient and suitable land to provide for a wide variety of housing, employment, recreation facilities and open space.

·    To promote the development of a sustainable and liveable neighbourhood form which reduces energy, water and travel demands whilst ensuring safe and convenient access to employment and services by all modes, provides choice and affordability of housing and creates an identifiable sense of place for each community.


 

State Planning Policy 3.7 Planning in Bushfire Prone Areas (2015)/Guidelines for Planning in Bushfire Prone Areas (2017)

SPP 3.7 directs how strategic planning proposals should address bushfire risk management in Western Australia. It applies to all land which has been designated as being bushfire prone on the State Map of Bushfire Prone Areas. The accompanying Guidelines for Planning in Bushfire Prone Areas provide supporting information to assist in the interpretation of the objectives and policy measures outlined in SPP 3.7, providing advice on how bushfire risk is to be addressed when planning, designing or assessing a planning proposal within a designated bushfire prone area.

 

The four elements of the Guidelines are:

 

·    Element 1: Location – to ensure that the subdivision, development or land use is located in areas with the least possible risk from bushfire, to help minimise risk to people, property and infrastructure.

·    Element 2: Siting and Design of Development – to ensure that the siting of development minimises the level of bushfire impact.

·    Element 3: Vehicle Access – to ensure that residents and the community, as well as emergency services, have safe access and egress from both the subdivision and individual houses/development.

·    Element 4: Water – ensures adequate water is available to defend against a bushfire.

Local Planning Strategy (2019)

The Local Planning Strategy (LPS) sets the long term broad planning direction for the whole of the District of the City of Busselton and provides the strategic rationale for decisions related to the progressive review and amendment of the Scheme. The LPS also sets out four ‘frameworks’ relating to: settlement; urban growth areas; activity centres; and industrial/service commercial growth areas.

 

Of relevance to Amendment 43, the LPS identifies ‘Yalyalup East’ as a ‘medium-term urban growth area’ under the Urban Growth Area Framework (reference number 10 on the LPS map provided at Attachment D). The reasons for this, as set out in Part B of the LPS, are:

 

·    Currently zoned ‘Tourism’ but not required for that purpose as per the recommendation of the City’s Local Tourism Planning Strategy.

·    Forms a logical extension to the ‘Yalyalup (2) current urban growth area’.

 

The LPS identifies issues to be considered in rezoning the subject land as: visual management; airport noise; and the design of the future planned Busselton Outer Bypass. Matters relating to visual management and the Busselton Outer Bypass are addressed by the draft Provence Structure Plan. Airport noise is discussed in subsequent sections below.

 

Local Tourism Planning Strategy (2011)

The Local Tourism Planning Strategy (LTPS) has a specific land use focus to identify locations and sites that are important for tourism industry growth within the City. The strategy also provides guidance for decision-making on tourism proposals, including consideration of change of land use from tourism to an alternative land use.

 

In relation to the subject land, the strategic direction set by the LTPS provides for consideration of rezoning to accommodate residential development including, potentially, park home park development.

 


 

Draft Provence Structure Plan (2019)

The draft Provence Structure Plan demonstrates how the subject land would be developed and provides guidance for matters such as: allocation of land uses; residential densities; road networks; public open space; and provision of community facilities. The Structure Plan identifies the future use of the Amendment area as residential (density coding R25 – R40) and public open space.

 

Busselton Margaret River Airport Noise Management Plan (2019)

The Busselton Margaret River Airport Noise Management Plan (NMP) provides a comprehensive plan for the effective management of noise generated by aircraft using the airport in order to protect the amenity of community members potentially affected by aircraft and aircraft noise.

 

The NMP provides for the implementation of a range of strategies for managing noise generated by users of the airport, with the main objective to provide a balance of airport development and amenity protection for potentially affected residents. These strategies include, amongst other things, operational hours restrictions; regulatory measures for flight training; noise assessment and monitoring; and land use planning.  

 

The NMP utilises a combination of Australian Noise Exposure Forecast (ANEF) contours and Noise-Above contours (N contours) for noise modelling. ANEF contours have inherent limitations for use by regional airports because they represent an average of operations over a year, but not peak time operations and resulting effects. N contours are used as supplementary measurements to the ANEF contours to guide land use planning and provide guidance on the number of aircraft noise events that exceed a given decibel level at certain times per day e.g. 65dB(A) is expressed as N65.

 

The NMP sets out outdoor noise criteria as follows:

 

·    85dB(A);or

·    80dB(A) for >6 events per day; or

·    75dB(A) for >12 events per day.

 

The NMP indicates that the noise modelling is based on ANEF and N65, N70 and N75 contours and would provide the direction for future land use planning, especially relating to noise sensitive land uses such as residential development, as the Airport develops.

 

The NMP states that where any significant proposal is to be considered which may result in a significant increase in traffic or change in the types of aircraft utilising the airport, the noise modelling and resultant contours would require updating.

 

 Busselton Margaret River Airport Noise Modelling Technical Report (2019)

A noise modelling technical assessment has been completed for the Busselton Margaret River Airport by consultants To70 (Attachment E). This modelling updates previous noise assessments to align with changes in forecast usage and aircraft type assumptions set out in the business case for the redevelopment and upgrading of the Airport and as required by the Busselton Margaret River Airport Noise Management Plan.

 

The technical assessment includes the following observations:

 

·    ANEF contours do not impact upon the eastern extension of Provence

·    The size (spatial extent) of ANEF contours has reduced by around 40%

·    The size of the N-contours has also reduced, highlighted by the loss of the 20 event contour and the shortening of the 5 event contour (due to the reduction in forecast helicopter and single piston aircraft movements)

·    N65 and N70 10 event noise contours do not impact on the eastern extension of Provence.

The spatial extent of the forecast N75 10 event contours for 2028/29 and 2038/39 relative to the current Airport Special Control Area and the eastern extension of Provence is provided at Attachment F.

Financial Implications

There are no financial implications associated with the Officer Recommendation.

Stakeholder Consultation

There is no requirement under the Planning and Development Act 2005 to advertise a proposed Scheme amendment prior to it being initiated by the Council. Accordingly, no advertising has occurred to date.

 

If the Council resolves to initiate the proposed Amendment, the related documentation will be referred to the Environmental Protection Authority (EPA) to consider the need for formal review under Part 4 of the Environmental Protection Act 1986. If the EPA determines that formal review is unnecessary, it will be advertised for a period of 42 days in accordance with the Regulations and include referral to relevant state government agencies.  In the event that the EPA determines that the proposal is to be formally reviewed, the City shall cause such review to be undertaken in accordance with s.82 of the Planning and Development Act 2005.

Risk Assessment

An assessment of the potential implications of implementing the Officer Recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place. The implementation of the Officer Recommendation will involve adopting the Amendment for public consultation. In this regard, there are no significant risks identified.

Options

As an alternative to the proposed recommendation the Council could:

1.    Resolve not to adopt the Amendment for public consultation (and provide a reason for such a decision); or

2.    To seek further information before making a decision.

 

CONCLUSION

The information contained within this report confirms that the Amendment as proposed would represent an appropriate outcome consistent with the orderly and proper planning of the City of Busselton and as such, it is recommended that the Amendment be initiated and adopted for public consultation.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The implementation of the Officer Recommendation will involve the provision of the Amendment documentation to the Environmental Protection Authority and this will occur within one month of the resolution.


Council

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22 April 2020

13.1

Attachment a

Draft Provence Structure Plan

 


Council

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22 April 2020

13.1

Attachment b

Location Plan

 


Council

17

22 April 2020

13.1

Attachment c

Existing and proposed zoning

 


Council

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22 April 2020

13.1

Attachment d

Local Planning Strategy

 


Council

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22 April 2020

13.1

Attachment e

Noise modelling technical report

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Council

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22 April 2020

13.1

Attachment f

Forecast N-contours

 


Council                                                                                      49                                                                      22 April 2020

13.2           CLIMATE CHANGE POLICY STATEMENT AND DECLARATION

STRATEGIC GOAL

3. ENVIRONMENT Valued, conserved and enjoyed

STRATEGIC OBJECTIVE

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

SUBJECT INDEX

Energy Management

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   Western Australian Local Government Association Climate Change Declaration

Attachment b    WALGA Climate Change Policy Statement  

 

OFFICER RECOMMENDATION

That the Council:

1.         Signs the Western Australian Local Government Association Climate Change Declaration (Attachment A);

2.         Continues to support the community in reducing the impacts of climate change and their greenhouse gas emissions; and

3.         Request the CEO draft a City of Busselton Council Policy, ‘Climate Change’, which is to be consistent with the Western Australian Local Government Association Policy Statement on Climate Change (Attachment B) and present to Council for endorsement by 30 June 2020.

 

EXECUTIVE SUMMARY

This report seeks Council support to sign the WALGA Climate Change Declaration (Attachment A) as a way to communicate and strengthen the City’s commitment to reducing its greenhouse gas emissions and managing the impact of climate change.

This report also seeks Council support to draft a Council Policy addressing Climate Change which is consistent with the WALGA Policy Statement on Climate Change (Attachment B) and also calls for the continued support of the local community in their efforts in reducing and managing the impacts of climate change.

 

BACKGROUND

On 26 February 2020, the Council received a petition with 126 signatures asking the City to:

1.         Endorse the Western Australian Local Government Association’s (WALGA) Climate Change Policy Statement that states, amongst other things “there is a climate emergency which requires urgent action by all levels of government to avoid an unacceptable burden on future generations”;


2.         Join more than 40 other Local Governments in Western Australia representing more than half of the population in signing the WALGA Climate Change Declaration, and in doing so set an appropriate local government emissions reduction target and work towards its achievement.

It also should set a community target and implement policies aimed at encouraging the community to reach that target. Actions and progress towards meeting these targets should be published annually.

 

The WALGA Climate Change Policy Statement was endorsed by the WALGA State Council on 4 July 2018 following consultation with member local governments. It represents the consolidated view of the LG sector and forms the basis of WALGA’s climate change advocacy.

 

The Climate Change Policy Statement states:

•     Local Government acknowledges:

–    The science is clear: climate change is occurring and greenhouse gas emissions from human activities are the dominant cause.

–    Climate change threatens human societies and the Earth’s ecosystems.

–    Urgent action is required to reduce emissions, and to adapt to the impacts from climate change that are now unavoidable.

–    A failure to adequately address this climate change emergency places an unacceptable burden on future generations.

•     Local Government is committed to addressing climate change.

•     Local Government is calling for:

–    Strong climate change action, leadership and coordination at all levels of government.

–    Effective and adequately funded Commonwealth and State Government climate change policies and programs.

 

The current Policy Statement was updated from the 2009 version to take account of significant developments in scientific understanding of climate change, international and national political developments, and the increasing urgency for effective climate change adaptation and mitigation action.

 

The City, through the WALGA South West Zone, has already supported the climate change policy statement at its meeting on 22 June 2018.

 

Subsequently to developing the first Climate Change Policy Statement, WALGA developed a ‘Climate Change Declaration for Local Governments’, which is consistent with the intent of the Policy Statement. The Declaration was endorsed at the August 2011 meeting of WALGA State Council.

 

The City’s Environment Strategy, endorsed by Council in September 2016, recommends the City “develops a climate change declaration for the City”.

 

To date, 40 local governments have signed the Climate Change Declaration, representing 65% of Western Australia’s population. That includes the following Councils:


 

City of Armadale

Shire of Ashburton

Shire Augusta-Margaret River

Town of Bassendean

City of Bayswater

City of Belmont

Shire of Boddington

Shire of Brookton

Town of Cambridge

City of Canning

Shire of Carnarvon

City of Cockburn

Town of Cottesloe

Shire of Dandaragan

Shire of Denmark

Town of East Fremantle

City of Fremantle

Shire of Goomalling

City of Greater Geraldton

Shire of Irwin

City of Joondalup

City of Mandurah

City of Melville

Shire of Merredin

Town of Mosman Park

Shire of Mundaring

Shire of Murray

City of Nedlands

Shire of Perenjori

City of Perth

Shire of Quairading

City of Rockingham

City of South Perth

City of Stirling

City of Subiaco

City of Swan

Shire of Toodyay

Town of Victoria Park

City of Vincent

 

OFFICER COMMENT

Climate Change Impacts

Listed below is a brief summary of anticipated climate change impacts globally and for the south west of WA for Councillors to review when considering the officer recommendation. It should be noted that City officers are not climate scientists, therefore the information provided below comes from widely accepted and recognised publications and resources, and is information which has formed the basis for policy development at both State and Federal levels, under all recent governments (i.e. it is information which has bi-partisan support across jurisdictions and levels of government).

 

The Intergovernmental Panel on Climate Change’s (IPCC) Fifth Assessment Report (2014), the latest report of the scientific consensus-based, found that:

Warming of the climate system is unequivocal, and since the 1950s, many of the observed changes are unprecedented over decades to millennia. The atmosphere and ocean have warmed, the amounts of snow and ice have diminished, sea level has risen, and the concentrations of greenhouse gases have increased. Most aspects of climate change will persist for many centuries even if emissions of CO2 are stopped.

Surface temperatures will remain approximately constant at elevated levels for many centuries after a complete cessation of net anthropogenic CO2 emissions. Due to the long time scales of heat transfer from the ocean surface to depth, ocean warming will continue for centuries. Depending on the scenario, about 15 to 40% of emitted CO2 will remain in the atmosphere longer than 1,000 years. It is virtually certain that global mean sea level rise will continue beyond 2100, with sea level rise due to thermal expansion to continue for many centuries.

 

Further, the Fifth Assessment Report found:

It is extremely likely [95–100%] that human influence has been the dominant cause of the observed warming since the mid-20th century.

 

More specifically for the south-west of Western Australia, the following impacts are forecast by the CSIRO and the Bureau of Meteorology (www.climatechangeinaustralia.gov.au):

-      An increase in temperatures in all seasons;

-      More hot days and warm spells;

-      Decreasing winter rainfall;

-      Increased intensity of extreme rainfall events;

-      Rising mean sea levels and height of extreme sea-level events; and

-      Harsher fire weather climate.

 

Some of the key findings applicable to the City of Busselton from the Climate Change risks to Australia’s coasts: A first pass national assessment (2009) were:

-      Local government areas (LGA) of Busselton, Mandurah, Rockingham and Bunbury have the highest level of risk of inundation from sea-level rise. Between 7,900 and 8,700 residential buildings may be affected by sea-level rise by 2100, representing approximately 60% of all current residential buildings within the Busselton LGA.

-      The Busselton and Mandurah LGA have the highest number of residential buildings at risk of coastal erosion from sea-level rise.

 

Further to the final point above, the hazard assessment and financial model developed for the City’s draft Coastal Adaptation Strategy identified over 7,000 properties as being potentially at risk from coastal erosion over the next 100-year timeframe, with an estimated current asset value of nearly $5 billion.

 

It is broadly accepted by the scientific community and policy makers that climate change is occurring and greenhouse gas emissions from human activities are the dominant cause. The south west of Western Australian and more specifically the City of Busselton have been found at higher risk from the impacts of climate change.

 

Climate Change Commitments

When considering the officer recommendation, it is also worth examining the broader context of climate change actions and commitments at all levels of governments, and how that applies at the local level.

 

As a signatory to the Paris Agreement (2016) under the United Nations Framework Convention on Climate Change, Australia has committed to taking action on climate change and committed to reducing Australia’s emissions to 26-28% on 2005 levels by 2030.The Paris Agreement expressly recognises the importance of engagement at all levels of government and invites:

Civil society, the private sector, financial institutions, cities and other subnational authorities[…]to scale up their efforts and support actions to reduce emissions and/or to build resilience and decrease vulnerability to the adverse effects of climate change.

 

In August 2019, the State Government committed to working with all sectors of the economy to achieve net zero emissions for our State by 2050. Acceptance of consensus climate change science is also reflected in State planning policies, in particular State Planning Policy 2.6: State Coastal Planning Policy (adopted in current form in 2013, which requires consideration of the potential sea level rise of 0.9 metres over 100 years.

 

Current climate change related work

Over the last decade the City has implemented a significant number of initiatives to reduce its carbon emissions and adapt to the impacts of climate change. For the purpose of this report, only key strategic documents are outlined. Additional information can be provided upon request.

 

Climate change mitigation

The City’s Energy Strategy, endorsed by Council late last year, outlines the City’s approach and commitments to reducing energy use and increasing the uptake of renewable energies. The vision calls to “Minimise 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 return to ratepayers through becoming a net energy generator”.

The following targets were also endorsed by Council:

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

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

3.    Develop efficiency targets for fleet and plant by 2025.

 

The City is also a member of the Cities Power Partnership (CPP), which is a an Australia-wide program which assists and supports all Local Governments to celebrate and accelerate their carbon emissions reduction and clean energy initiatives. As part of the program, it committed to the following 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.

 

Climate change adaptation

The City is a member of the Peron Naturaliste Partnership (PNP), which is a network of local governments committed to monitoring, identifying and managing coastal assets in relation to the impacts of climate change. Significant work has been undertaken in climate change adaptation, mainly through the PNP including:

-      Coastal Adaptation Pathways project;

-      Coastal Community Adaptation Awareness Plan;

-      Coastal erosion modelling;

-      Historical shoreline movement study;

-      Coastal Protection Management Plan; and

-      Coastal Climate Change Legal Risk Mitigation project.

 

A Coastal Adaptation Strategy is currently being developed for the City. The objective of the project is:

To address issues related to coastal erosion and coastal flooding risk, which is reflected in an integrated way in the local planning scheme, as well as the City’s infrastructure and financial planning, and which will protect urban areas from coastal flooding and coastal erosion, or provide for managed retreat from vulnerable areas.

 

Significant work is also underway to secure non-climate vulnerable access to non-potable water in Dunsborough (Sue Coals Aquifer) and Busselton (treated wastewater). The City has also been working with Busselton Water to assess the vulnerability of bores in coastal locations, which may be vulnerable to salinisation caused by sea level rise and the drying of the climate.

 

The City has also recently agreed to participate in sustainability action planning work being undertaken by the Margaret River Wine Industry Association.

 


Objectives of WALGA Climate Change Policy Statement and Declaration

Signing the WALGA Climate Change Declaration and developing a Council Policy: Climate Change would:

·    Continue to demonstrate the City’s acknowledgment of the impacts of climate change and commitment to developing locally appropriate mitigation and adaptation strategies to manage climate change; and

·    Further support WALGA to advocate for the appropriate funding and development of legislative mechanisms to support local government climate change mitigation and adaptation work.

 

As outlined above, the City has been very proactive in the climate change sector, and supporting WALGA’s Declaration and developing a Council Policy reflective of WALGA’s Policy Statement would not commit the City to doing more or differently to what is currently being done. It would merely be another public declaration and acknowledgement of the importance of climate change and the need for action by all levels of government and more broadly.

 

Community Targets

A third component of the petition calls for the setting of community targets and the implementation of initiatives to assist the community in reducing its carbon emissions.

 

In 2010 the City, in line with recommendations from the now defunct Cities for Climate Protection (CCP™) program adopted a community target for reducing emissions. Carbon emissions from the residential, commercial, industrial, transport and waste sectors were estimated, using fairly crude and often broadly estimated data provided by the CCP. While this exercise provided an opportunity to raise awareness in the community and within Council of emissions intensive activities, it was a time consuming exercise, which took resources away from implementing projects.

 

The City is also limited as to how it can influence community emissions. The main areas of influence are a mixture of encouraging/supporting sustainable transport and waste management, organising education/funding programs and providing new infrastructure that supports the reduction of carbon emissions (i.e. EV charging stations or community batteries).

 

Over the last decade, despite the absence of community targets or community emissions inventory, the City has substantially invested in working with the community in these areas. Some recent examples are provided below:

-      Community education

Development of a City of Busselton Building a sustainable house brochure and distribution via the Building Approval process and other communication channels;

Holding of a Living Smart Sustainability course every year since 2017;

Support provided to the Busselton and Dunsborough Community Gardens; and

Provision of community battery storage (PowerBank), in partnership with Western Power.

-      Sustainable transport

Ongoing construction of new shared paths, maintenance of existing paths and installation of end of trip infrastructure such as bike lockers, repair stations and bike parking;

Active transport behaviour change program for students at local primary schools;

Installation of two EV charging stations in Busselton and Dunsborough; and

Public transport community consultation in partnership with the Public Transport Authority.

Feasibility study of a proposed safe active street, where speeds are reduced to allow for safer on road bike riding.

-      Waste management

Trial of a 3 bin system with intent to roll-out to the entire community involving collection and processing of food organics and garden organics from households into compost. This service avoids a significant amount of methane which would otherwise be emitted if left to decompose in landfill; and

School and community presentations and workshops on zero waste and how to reduce ones impact on the environment and consequently reduce greenhouse gas emissions.

 

Promotion of these initiatives occurs on an ongoing basis through the City’s usual communication channels and through the City’s annual report.

 

Work is currently underway to develop free and standardised community emission profiles for all LGs in Australia, through a tool called Snapshot. Staff are monitoring progress of this initiative and if deemed necessary will brief Council on the merit or otherwise of joining this 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 officer recommendation aligns to the following adopted plans or policies:

- Environment Policy (2011), sets out that:

Plan, design, operate and conduct operations in a manner that minimises waste and the demand on natural resources and energy.

 

- City of Busselton Environment Strategy (2016)

Strategic Action 4.6 “Develop a climate change declaration for the City”.

 

- City of Busselton Energy Strategy (2019)

Vision: “Minimise 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”.

Targets:

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

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

·   Develop efficiency targets for fleet and plant by 2025.

 

Financial Implications

There are no financial implications associated with the officer recommendation.

 

Implementation of climate change mitigation and adaptation measures can, however, have financial implications, both positive and negative. For instance, should the Council choose to move to an ongoing and more widespread FOGO bin service, there would be costs associated with doing so.

If the City failed to protect infrastructure from coastal processes affected by sea level rise (i.e. coastal erosion and inundation, salinisation of groundwater), there would be associated costs (and also costs associated with protection, if the Council had chosen to do that).

 

Stakeholder Consultation

No external stakeholder consultation was required or undertaken in relation to this matter. It is worth noting that this report is in response to a petition received by the Council.

 

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.    Amend the wording of the Climate Change Policy Statement (when drafted) and/or Declaration. This is not recommended as the documents were carefully worded to represent the views of the local government sector and indicate the severity and urgency of the issue of climate change for local communities

2.    Endorse community emissions reduction targets. Another report would probably need to be prepared outlining resources required and possible options for targets.

3.    Prepare an annual community score card, presenting key performance indicators representative of the City of Busselton community’s performance in reducing the impacts of climate change. Such score card would be more beneficial at a regional level, in partnership with WALGA. It is highly recommended Council considers existing workload priorities when recommending to endorse community emissions reduction targets and/or prepare a community sustainability score card and the need to allocate sufficient resources towards implementing the recently endorsed Energy Strategy.

 

CONCLUSION

It is recommended the City signs the WALGA Climate Change Declaration as it further supports and enhances the City’s current and existing efforts in reducing its greenhouse gas emissions and managing the impacts of climate change. it is recommended the City focuses its efforts on continuing to support the community by delivering services that will effectively reduce emissions as opposed to setting and reporting on community emissions targets.

 

At this stage, it is recommended that officers draft a Council Policy on Climate Change, that is consistent with the WALGA Policy Statement, and present to Council at a later point in time for endorsement.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The WALGA Climate Change Declaration will be signed and officers will commence work on drafting a Council Policy on Climate Change within 30 days of the Council resolution. The City will continue to support the community in reducing the impacts of climate change on an ongoing basis.


Council

51

22 April 2020

13.2

Attachment a

Western Australian Local Government Association Climate Change Declaration

 


 


Council

66

22 April 2020

13.2

Attachment b

WALGA Climate Change Policy Statement

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 

 


Council                                                                                      67                                                                      22 April 2020

14.             Engineering and Work Services Report

Nil


Council                                                                                      70                                                                      22 April 2020

15.             Community and Commercial Services Report

15.1           BUSSELTON HOCKEY ASSOCIATION INC. SELF-SUPPORTING LOAN AGREEMENT

STRATEGIC GOAL

1. COMMUNITY: Welcoming, friendly, healthy

STRATEGIC OBJECTIVE

1.3 A community with access to a range of cultural and art, social and recreational facilities and experiences.

SUBJECT INDEX

Busselton Hockey Association Inc.

BUSINESS UNIT

Community Development

REPORTING OFFICER

Club Development Officer - Pam Glossop

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

Absolute Majority

ATTACHMENTS

Nil

 

OFFICER RECOMMENDATION

That the Council:

 

1.    Acknowledges Council Resolution C1908/161 approving a self-supporting loan to the Busselton Hockey Association Inc. for the amount of $80,000 for a term of up to 10 years;

 

2.    Resolves that this will be funded by a loan facility from the Western Australian Treasury Corporation as per the 2019/2020 annual budget;

 

3.    Authorises the CEO to enter into a Loan Repayment Agreement with the Busselton Hockey Association Inc. where:

 

a.       the Association acknowledges it is responsible for the reimbursement to the City of Busselton of the full costs associated with the loan,

 

b.    the Loan repayment calculations are on the basis of the prevailing Western Australian Treasury Corporation lending rate including Government Guarantee Fee at the time of actual funding of the loan; and

 

4.    Authorises the CEO to enter into a Deed of Amendment providing that default in respect of the Loan Repayment Agreement could result in termination of the Lease.

 

EXECUTIVE SUMMARY

On 27 August 2019, Council endorsed (C1908/161) a self-supporting loan for the Busselton Hockey Association Inc. for an amount of $80,000 for a term of 10 years, towards the Busselton Hockey Stadium upgrade project.

 

The resolution incorrectly referred to the loan being funded internally by the City of Busselton, however should have referred to the Western Australian Treasury Corporation as the funding agent. The officer recommendation allows the request for funding to be approved while maintaining the intent of the previous Council resolution.

 

BACKGROUND

At the Ordinary Meeting of Council held 27 August 2019, Council resolved (C1908/161) the following:

 

That the Council:

 

1.    Subject to the assessment of the Club’s Financial Statements, approve for the purposes of upgrading the lighting at the Busselton Hockey Stadium a self-supporting loan, to be internally funded, to the Club, for the amount of $80,000 for a term of up to 10 years.

2.    Authorises the CEO to enter into a Loan Repayment Agreement with the Busselton Hockey Stadium Club Inc. where:

a.    The Club acknowledges it is responsible for reimbursement to the City of Busselton of full costs associated with the loan,

b.    The Loan repayment calculations are on the basis of the prevailing Western Australian Treasury Corporation lending rate Including Government Guarantee Fee at the time of actual funding of the loan.

3.    Authorises the CEO to enter into a Deed of Amendment providing that default in respect of the Loan Repayment Agreement could result in termination of the Lease.

CARRIED 8/0

 

On reflection, the wording included ‘to be internally funded’ in part 1 above should have referred to the City raising the loan through the Western Australia Treasury Corporation, not by the City of Busselton. This report therefore resolves to enter into a self-supporting loan agreement with the Busselton Hockey Association Inc. through the Western Australian Treasury Corporation.

OFFICER COMMENT

The officer recommendation does not change the intent of the original report presented to Council at the Ordinary Meeting held 27 August 2019.

Statutory Environment

Section 6.20 of the Local Government Act provides the local government with the power to borrow funds. Council is not required to advertise the borrowing of funds (Section 6.20(4)(a)) if it is included within the Annual Budget. The 2019/20 Annual Budget provided for up to $150,000 available for self-supporting loans for community groups.

Relevant Plans and Policies

‘Council Policy 048 – Loans’ is applicable in offering the Busselton Hockey Association Inc. a self-supporting Loan.

Financial Implications

The Busselton Hockey Association Inc. has successfully applied for a grant through the City’s 2019/20 Community Bids program for $59,000 and also to the Department of Local Government, Sport and Cultural Industries for a grant of $84,950 through the Community Sport, Recreation and Facilities Fund (CSRFF).

 

The project cost breakdown is as follows:

 

CSRFF:                                  $84,950

Community Bids:              $59,000

Self-Supporting Loan:     $80,000

Applicant cash:                  $30,901

Total project cost:            $254,851

 

The City’s adopted 2019/20 budget includes the provision of funding for self-supporting loans to the community to a maximum of $150,000. To date, no funds have been drawn upon.

The loan would be granted on the basis of the prevailing Western Australian Treasury Corporation (WATC) lending rate including Government Guarantee Fee at the time of actual Funding of the loan.

The WATC have advised that the current borrowing rate for 5 years is 1.12% and 10 years is 1.58% (both inclusive of a .07% Government Guarantee Fee), noting that this rate is subject to change up until and including the day the loan is drawn down.  All interest and principal repayments would be formally agreed to prior to release of any funding.

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.

The following risks have been identified:

Financial Risk of Busselton Hockey Association Inc. not being able to repay the loan.

Risk Category

Risk Consequence

Likelihood of Consequence

Risk Level

Financial

Minor

Unlikely

Low

 

The Club has provided its financial statements for 2017/18 and 2018/19 financial years. Whilst the cash contribution will leave little in reserves, Officers are confident the Club can meet its financial obligations.  During the 2019/20 financial year the Club raised approximately $40k through the hosting of the Hockey Masters Tournament, catering for the Masters Tennis Tournament and hosting of a lacrosse tournament.

Options

Council have previously resolved to provide a self supporting loan to Busselton Hockey Association Inc and this recommendation continues support for that decision.

CONCLUSION

Officers recommend that a self-supporting loan agreement should to be entered into with the Busselton Hockey Association Inc. through the Western Australian Treasury Corporation.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Officers will implement the recommendation immediately following Council endorsement.


Council                                                                                      77                                                                      22 April 2020

15.2           ECONOMIC DEVELOPMENT BUSINESS SUPPORT PROGRAM

STRATEGIC GOAL

4. ECONOMY Diverse, resilient, prosperous

STRATEGIC OBJECTIVE

4.2 A community where local business is supported and in turn drives our economy

SUBJECT INDEX

ECONOMIC DEVELOPMENT

BUSINESS UNIT

Commercial Services

REPORTING OFFICER

Manager, Commercial Services - Jennifer May

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

Absolute Majority

ATTACHMENTS

Attachment a   Business Support Program - Guidelines Draft  

 

OFFICER RECOMMENDATION

That the Council:

1.         Endorses the allocation of $160,000 from the adopted 2019/20 economic and business development and marketing and events budgets towards economic and community development initiatives in response to the COVID-19 crisis, including:

(a)       $75,000 to be allocated to a small business support program; and

(b)       $85,000 to be allocated to other economic and/or community development initiatives;

2.         Delegates authority to the Chief Executive Officer to establish criteria and approve applications for the business support program and economic and community development initiatives; and

3.         Endorses a budget amendment which gives effect to Part 1 above resulting in a $0 effect on the City’s net current position.

 

EXECUTIVE SUMMARY

The COVID-19 pandemic has had a significant impact on the international, national and local economies. Already within the City of Busselton, residents, businesses and employers are significantly impacted by the government mandated businesses closures and social distancing measures, as well as the interstate and regional travel restrictions that have been put into place.

 

This report requests Council consider a business support program as a first response to the COVID-19 crisis that will be followed by a broader economic recovery plan that will be developed through the initiation of the Local Recovery Group. The business support program is designed to be a ’quick response’ program that can be initiated immediately at the local level, complementing both State and Federal Government support and stimulus packages.

 

BACKGROUND

The COVID-19 Pandemic has had a significant impact on the global and national economy as social distancing measures including border and travel restrictions have been put into place to stop the spread of the Corona virus. While the complete local economic effects from the pandemic are yet to be fully understood, feedback from industry stakeholders indicates that businesses in events, tourism, hospitality, retail, food and beverage and many more have been significantly impacted.

 

The first wave of restrictions on events and public gatherings (less 500 people) were introduced on 15 March 2020, followed by the closure of places of social gathering, licenced clubs and premises, entertainment venues including cinemas and places of worship a week later. Cafes and restaurants were able to remain open but limited to takeaway only. The closing of interstate and regional borders on 24 March and 31 March respectively have all resulted in large number of job losses, and significant financial hardship on individuals and businesses. The unknown timelines associated with the pandemic and lifting of restrictions and social distancing measures has also resulted in uncertainty around the future and has hit the local and regional economies hard.

 

The State and Federal Governments have responded to the COVID-19 pandemic by releasing a number of stimulus and support packages to assist individuals and businesses. The economic initiatives to date have been aimed at getting cash flow back into businesses to help keep their employees in jobs and provide financial relief through a number of measures such as:

 

·    Income support payments for individuals and households, including JobSeeker payments, early release of superannuation, utility and rental assistance and other family tax benefits;

·    Support for businesses through tax-free cash payments, JobKeeper payments, payroll tax one-off grants, tax payment deferments and investment incentives.

 

Despite this, many businesses within the City of Busselton have, and are continuing to suffer financial hardship, with revenue streams impacted through the travel and social distancing measures put in place.

 

The City of Busselton has responded to the COVID19 pandemic in a number of ways and on the 1 April 2020, a report was endorsed by Council to implement a range of economic and community measures including, but not limited to;

 

·    Not increasing rates for the 2020/21 financial year;

·    Introduction of weekly, fortnightly and monthly payment options for rates payments;

·    Reducing interest and payment charges to rates billing and collection;

·    Relaxing terms and conditions on payment arrangements on a case by case basis;

·    Consideration of revised 2020/21 Community Bids funding package;

·    Consideration of a revised 2020/21 marketing and events sponsorship package;

·    Consideration of the repurposing of the unallocated and unspent funds from the 2019/20 marketing and events budgets generated through the Industrial and Commercial Differential Rate.

 

Further to this the City’s Economic Development Team has been involved in responding to the pandemic through a range of initiatives, including the development of a business support program.

OFFICER COMMENT

Since the initiation of the COVID19 response by the City of Busselton and with the formation of an internal executive COVID-19 group in mid-March, the Economic Development team have been involved in responding to local businesses and the community as well as liaising with industry, government agencies, not-for-profit organisations and other City departments in collating and providing up to date information about financial assistance and resources.

 

A summary of activities can be viewed below:


 

Contact and liaison with industry, government agencies and stakeholders

Industry  Summary Document is being maintained, including updates from:

·    Busselton Chambers of Commerce

·    Dunsborough and Yallingup Chamber of Commerce and Industry

·    Margaret River Wine Industry Association

·    Margaret River Busselton Tourism Association

·    Australia’s South West

·    South West Development Commission

·    Business Advisory South West

·    Regional Development Australia

·    Bunbury Geographe Economic Alliance

·    City of Busselton Economic Development Taskforce members

·    Other WA Local Government Economic Development agencies

·    Economic Development Australia

Regular email alerts to database of business owners, providing information on State and Federal governments, local and regional  resources

·    18 /03 – Important information for small business regarding  COVID-19

·    20/03 -  Practical information regarding COVID-19

·    23/03 -  DYCCI COVID-19 Online Information Session

·    24/03 – COVID-19 Useful links and Information to local businesses

·    26/03 – COVID-19 City of Busselton Economic Development Update

·    31/03 – Email to Economic Development Taskforce Membership

Liaising with City’s Public Relations team on Facebook/ Instagram/ Bay-to-Bay updates

FaceBook 

·    2/04 - How is your business #doingitdifferently

·    9/04 - Easter Support local message to go out tomorrow

·    9/04 - How is the City supporting local business

Bay to Bay newsletter

·    31/03 Supporting Local business during COVID-19, Our SouthWest / Community Directory update ($1000 contribution)

Development of  Business Support Program

·    Development of application form and guidelines for quick response small business grants

·    Identification of business support initiatives

·    Economic Development initiatives budget (economic and business Development / marketing and events budget reviews)

BCCI Proposal

·    ED Team have assessed a proposal received from the BCCI and will liaise further with the BCCI.

Economic Recovery Plan

·    Preparation  of Economic Recovery Plan

City of Busselton Website

·    Update City of Busselton COVID-19 webpage (14/4 -18/4)

 

A further initiative proposed by the City’s Economic Development Team to assist businesses impacted by COVID-19 crisis is a proposed business support program.  This program would involve providing “quick response” grants to small businesses within the City of Busselton to assist them navigate their way through these challenging times. The proposed grants are proposed to focus on business sustainability, as opposed to business growth, and will support projects up to a value of $5,000 per applicant as a one-off grant. The total pool of grant funds available will be up to $75,000.

 

It is proposed that the business support program will fund initiatives such as website design and development, e-commerce platforms for selling and receiving payments, online content development, strategies for increased connection to customers and implementation/expansion for delivery services to customers.   

 

The grants are not intended to fund the following:

·    Staff wages

·    Rent

·    Utilities

·    Consumables

·    Plant and equipment (including IT equipment).

 

To be eligible to receive a small business support grant, applicants must:

·    Have a valid Australian Business Number (ABN) that was registered prior to 16 March 2020

·    Business address located within the City of Busselton

·    Have 10 or less employees

·    Show how they have been impacted as a result of the COVID-19 Pandemic

·    Agree to the terms and conditions of the grant.

 

Applicants must be able to provide the following:

·    The most recent Business Activity Statement (BAS)

·    A full budget for expenditure

·    Quotations from suppliers

·    Any other income sources used to fund the project

·    Insurance certificates

 

Timeframes

Activities commenced after 16 March 2020 when the State of Emergency was declared are eligible to be funded.

 

It is expected that the proposed activity will be completed within six months after funding approval (if successful) and preference will be given to those that can be completed in a shorter time frame.

 

Local Suppliers

Applicants that utilise local suppliers where possible for project delivery will be considered favourably.

 

Assessment Criteria

Applications will be assessed on an ongoing basis and applicants will be notified of the outcome of their application as soon as practicable. Applications will be assessed on the following criteria:

·    The degree that the business has been negatively impacted by the COVID-19 pandemic.

·    The degree that the business is contributing to the local economy.

·    The ability to retain operations and existing staff and/or increase the number of staff as a result of the project.

·    Evidence that development of the online and e-commerce capabilities will benefit the business long term and can continue being utilised post the COVID-19 pandemic.

·    The use of local suppliers (where possible).

 

It is proposed that applications will be assessed by City officers and approved by the Chief Executive Officer in order to expedite the assessment process and enable business immediate access to funding support.

 

In addition to the small business support grants, a pool of grant funding of $79,000 is proposed for other economic and community development initiatives up to the value of $25,000 per application that may include the following;

·    Identify and deliver relevant training and development activities to assist businesses to adapt to changing work practices and models.

·    Marketing of City of Busselton businesses or opportunities.

·    Development of online workshops / seminars to support local business through adapting and innovating business models in response to the rapidly changing environment. These online workshops would ideally be delivered through partnerships with industry stakeholders such as the chambers of commerce, business advisory groups, tourism or government agencies.

·    Community development initiatives to support the temporary delivery of identified community services.

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.

 

Section 6.8 of the Local Government Act 1995 (the Act) relates to expenditure not included in an annual budget. Expenditure can be approved by the Mayor in emergency situations.

 

Section 5.42 of the Act allows Council to delegate some of its powers to the CEO provided they are not duties that are limited within the Act that are deemed “not delegable”.

Relevant Plans and Policies

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

Financial Implications

City Officers have reviewed the adopted 2019/20 Economic and Business Development budget and after offsetting any revenue that will not be received during the 2019/20 financial year and deferring planned expenditure, a total of $62,000 in savings can be made (some contingency has been left in the budget to allow for any late invoices).

 

 

Approved  Budget

Total Actual

Funds Available

Identified funds/savings

Comments

Hire Fees & licence fee revenue

60,000

46,707

13,293

13,293

Reduction in cruise ships marine berthing and DOT boat ramp fee revenue


 

Other General expenses

(900)

0

(900)

 (900)           

 

Consultancy

(75,000.00)

(22,512)

(52,488)

 (40,000)*

Earmarked initiatives include $25k industry sector analysis, $10k Winter warmer place event, $5k ED initiatives

Marketing & Promotions

(34,750)

(15,541)

(19,209)

(19,209)

Cruise ship MRBTA visitor servicing

Advertising

(5,000)

(107)

(4,893)

(4,893)

 

Valuation Expenses

(8,200)

0

(8,200)

 (8,200)

 

Donations & contributions

(160,000)

(119,943)

(40,057)

(10,000)

MRBTA visitor servicing last quarter invoice

Total

$223,850

$111,396

$112,454

$69,909

 

*An expenditure amount of $13k has been planned towards Spendmap subscription which has yet to be finalized, if this subscription does not go ahead then this allocation could also be made available.

 

Further savings have been identified in the City’s marketing and events budget where funds allocated to events that have been cancelled or postponed due to the COVID-19 crisis will not be expended in the 2019/20 financial year. These savings total $50,000 from the events budget and a further $48,000 from the marketing budget.

 

In total, potential savings of up to $160,000 could be redirected towards COVID-19 economic development initiatives.

 

At this time, Officers have not investigated redirecting funds from the 2020/21 budget.

Stakeholder Consultation

The City’s Events team have consulted with all event organisers for events planned to be held in the 2019/20 financial year to identify where allocated event funding would not be used due to event cancellations or postponements. Where event organisers have incurred costs for events that were cancelled immediately prior to the event, the City will honour expenses incurred linked to the City’s funding by those event organisers which are evaluated on a case by case basis.

 

The City’s Economic Development Team have consulted widely with local businesses, industry stakeholders and other Local Government economic development teams across Australia in developing the small business support program.

Risk Assessment

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

The following risks have been identified:

Inappropriate use of City funding allocated through the small business support program.

Risk Category

Risk Consequence

Likelihood of Consequence

Risk Level

Financial

Insignificant

Unlikely

Low

 

Options

As an alternative to the proposed recommendation, the Council could choose to amend the measures proposed by adding or removing initiatives to assist the community throughout the COVID-19 crisis.

CONCLUSION

The City’s Economic Development Team have developed a number of economic development initiatives to assist local small to medium sized businesses in managing and navigating the immediate and ongoing impact of the COVID-19 pandemic. The program is proposed to be available to support businesses to develop their online and e-commerce capabilities to become more resilient and are an initial response measure. Council will be able to consider further measures at a later date and as part of the Economic Recovery Plan once developed.  

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Officers will commence the actions immediately following Councils resolution.

 


Council

83

22 April 2020

15.2

Attachment a

Business Support Program - Guidelines Draft

 


 


 


 


 


 

 


Council                                                                                      85                                                                      22 April 2020

16.             Finance and Corporate Services Report

16.1           LIST OF PAYMENTS MADE - FEBRUARY 2020

STRATEGIC GOAL

STRATEGIC OBJECTIVE

6. LEADERSHIP Visionary, collaborative, accountable

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

SUBJECT INDEX

Financial Operations

BUSINESS UNIT

Financial Services

REPORTING OFFICER

Manager Financial Services - Paul Sheridan

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

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   List of Payments February 2020  

 

OFFICER RECOMMENDATION

That the Council notes payment of voucher numbers M117859 – M117920, EF069711 – EF070202,  DD004033 – DD004049 together totalling $7,246,831.05.

EXECUTIVE SUMMARY

This report provides details of payments made from the City’s bank accounts for the month of February 2020, for noting by the Council and recording in the Council Minutes.

 

BACKGROUND

The Local Government (Financial Management) Regulations 1996 (the Regulations) requires that when the Council has delegated authority to the Chief Executive Officer to make payments from the City’s bank accounts, that a list of payments made is prepared each month for presentation to, and noting by, the Council.

OFFICER COMMENT

In accordance with regular custom, the list of payments made for the month of February 2020 is presented for information. 

Statutory Environment

Section 6.10 of the Local Government Act 1995 and more specifically, Regulation 13 of the Regulations refer to the requirement for a listing of payments made each month to be presented to the Council.

Relevant Plans and Policies

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

Financial Implications

There are no financial implications associated with the officer recommendation.

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

Not applicable.

CONCLUSION

The list of payments made for the month of February 2020 is presented for information.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

 

 

 


Council

90

22 April 2020

16.1

Attachment a

List of Payments February 2020

 


 


 


 


 


 


 


Council                                                                                      100                                                                   22 April 2020

16.2           FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 29 FEBRUARY 2020

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 February 2020

Attachment b    Financial Activity Statement February 2020  

   

OFFICER RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 29 February 2020, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations.

EXECUTIVE SUMMARY

Pursuant to Section 6.4 of the Local Government Act 1995 (the Act) and Regulation 34(4) of the Local Government (Financial Management) Regulations 1996 (the Regulations), a local government is to prepare, on a monthly basis, a statement of financial activity that reports on the City’s financial performance in relation to its adopted / amended budget.

 

This report has been compiled to fulfil the statutory reporting requirements of the Act and associated Regulations, whilst also providing the Council with an overview of the City’s financial performance on a year to date basis for the period ending 29 February 2020.

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 on 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 year to date basis, the following financial reports are attached hereto:

 

Statement of Financial Activity

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

 

Net Current Position

This report provides details of the composition of the net current asset position on a 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 29 February 2020

The Statement of Financial Activity (FAS), for the year to date as at 29 February 2020 shows an overall Net Current Position of $14.2M as opposed to the amended budget of ($3.4M), a positive difference of $17.6M.  The following summarises the major cash variances that appear on the face of the FAS, which in accordance with Council’s adopted material variance reporting threshold, 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

1.80%

1,243,284

1.    Operating Grants, Subsidies and Contributions

3,662,072

2,821,879

4,977,647

29.77%

840,193

2.    Other Revenue

304,547

353,462

551,510

(13.84%)

(48,915)

 

 

 

 

 

Expenses from Ordinary Activities

 

 

5.89%

3,186,192

3.    Materials & Contracts

(10,407,176)

(12,405,990)

(19,058,249)

16.11%

1,998,814

4.    Other Expenditure

(2,043,871)

(2,484,590)

(4,995,811)

17.74%

440,719

5.    Allocations

1,244,049

1,441,425

2,161,452

13.69%

(197,376)

 

 

 

 

 

 

6.    Non-Operating Grants, Subsidies and Contributions

3,788,295

5,600,680

23,764,690

(32.36%)

(1,812,385)

 

 

 

 

 

 

Capital Revenue & (Expenditure)

 

 

37.46%

14,797,529

7.    Land & Buildings

(2,291,272)

(6,294,920)

(8,381,113)

63.60%

4,003,648

Plant & Equipment

(1,643,994)

(3,957,850)

(4,855,350)

58.46%

2,313,856

Furniture & Equipment

(192,138)

(758,704)

(1,113,069)

74.68%

566,566

Infrastructure

(9,468,913)

(21,560,980)

(37,545,346)

56.08%

12,092,067

8.    Proceeds from Sale of Assets

331,063

632,550

3,409,080

(47.66%)

(301,487)

9.    Transfer to Restricted Assets

(459,307)

(40,072)

(60,100)

(1046.2%)

(419,235)

10.  Transfer from Restricted Assets

878,339

0

6,319,121

100.00%

878,339

11.  Transfer from Reserves

1,232,906

6,253,436

34,669,883

(80.28%)

(5,020,530)

 

Revenue from Ordinary Activities

Year to date (YTD) actual income from ordinary activities is $1.2M more than expected when compared to the YTD amended budget, with the following items meeting the material variance reporting thresholds:

 

1.    Operating Grants, Subsidies and Contributions are $840K (net) better than amended budget. This variance is mainly due to the following:

·    Grants Commission - Special Grants Bridges (10152), ($158K) - $124K is still to come in relation to Bussell Hwy Bridge 0241.  The remaining variance relates to budgeting misallocations where the grants were actually supposed to be main roads direct funding;


·    Legal Fees Reimbursements (10500), ($51K) – budget item included for a fine that was received in the 18/19 financial year.  A budget amendment was processed to move a portion of the fine from retained earnings to a legal reserve, however a further budget amendment to remove this revenue item is still being investigated;

·    Human Resources Reimbursements (10521), $51K - $33K due to conference and training reimbursements not budgeted for sufficiently and $19K received in workers comp reimbursements with all receipts budgeted in June;

·    Contributions to Airport Operations (11151), $51K – received December but budgeted in June;

·    Contributions YCAB (B1361), $27K – $4K from City of Kwinana for the youth conference received November, $20K from Rio Tinto received December as part of annual youth trainee sponsorship, and $3K from Lions Club received January.  Budget of $20K in March only;

·    Strategic Planning Operating Grants & Subsidies (10820), ($25K) – This is remaining grant funding for the CAS project which will not be finalise until later in the year.  The remaining activities for the project will be carried over into the next budget;

·    Environmental Management Administration (10830), $192K – 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 Grants DFES (10942), $57K – 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;

·    Preventative Services CLAG (10925), ($29K) – Offset by budgeted expenditure that has not occurred, to the same amount;

·    Pre-Primary Building & Surrounds (B1503), $30K – Grant was budgeted to be received in June 2020, but was received in November 2019;

·    Reimbursements Old Butter Factory (B1401 & B9610), $371K – Timing difference due to difficulties in predicting when LGIS would process the claims.  Advice received in January that claims have been processed;

·    Storm Damage Insurance Renewal (C2527), $37K – insurance claim for damage to King Street steps and ramp received.

 

2.    Other Revenue is ($49K) worse than budget.  The main contributing variances are outlined in the table below:

Cost Code

Cost Code Description / GL Activity

Variance
YTD
$

10970

Parking Control

(36,754)

G0031

Dunsborough Waste Facility

(27,587)

10100

Finance & Corporate Services Support (LSL contribution not received from other LG)

(26,000)

10510

Governance Support Services (LSL contribution received from other LG.  Not related to above)

14,745

G0030

Busselton Transfer Station

31,322

 


Expenses from Ordinary Activities

Expenditure from ordinary activities is $3.2M or 5.9% less than expected when compared to the amended YTD budget.  The following items meet the material variance reporting thresholds:

 

3.    Materials and Contracts better than amended budget YTD by $2M

 

The main contributing items are listed below:

 

Cost Code

Cost Code Description / GL Activity

Variance
YTD
$

Finance and Corporate Services

 

(24,480)

10000

Members of Council

(44,694)

10250

Information & Communication Technology Services

(109,441)

10500

Legal and Compliance Services

47,035

Community and Commercial Services

327,526

10380

Busselton Library

65,811

10600

Busselton Jetty Tourist Park

74,746

10900

Cultural Planning

55,997

Planning and Development Services

522,617

10820

Strategic Planning

150,397

10830

Environmental Management Administration

133,525

10850

Implement Management Plans Other

60,364

10931

Protective Burning & Firebreaks-Reserves

33,535

11170

Meelup Regional Park

76,541

Engineering and Works Services

1,046,773

Various

Busselton Jetty Maintenance

540,333

12620

Rural-Tree Pruning

(55,806)

12621

Urban-Tree Pruning

(70,611)

Various

Bridge Maintenance

127,201

Various

Building Maintenance

53,594

Various

Other Infrastructure Maintenance

300,116

Various

Waste services

246,784

Various

Road Maintenance

(181,093)

Various

Reserve Maintenance

86,256

 

4.    Other Expenditure $441K under the amended YTD budget:

 

The main contributing items are listed below:

 

Cost Code

Cost Code Description / GL Activity

Variance
YTD
$

Finance and Corporate Services

 

180,069

10000

Members of Council

109,453

10151

Rates Administration

41,913

10700

Public Relations

34,443


 

Community and Commercial Services

157,907

10530

Community Services Administration

148,176

12631

Peel Tce Building & Surrounds

(39,943)

Engineering and Works Services

118,158

11160

Busselton Jetty

41,664

B1223

Micro Brewery - Public Ablution

60,000

G0042

BTS External Restoration Works

33,483

 

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 $1.8M 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

(380,380)

10239

Contributions - Community Facilities

(516,455)

10250

Information & Communication Technology Services – Capital Grants (Federal)

144,956

Community and Commercial Services

489,978

C6099

Airport Development – Capital Grant (Federal)

477,978

Planning and Development Services

(786,628)

B1015

Hithergreen District Bushfire Brigade – Donated Assets

(465,200)

B1024

Wilyabrup Bushfire Brigade – Donated Assets

(178,300)

B1029

Busselton Branch SES – Donated Assets

(97,200)

B9109

Hithergreen Building Renovations – Capital Grant (State)

(45,928)

Engineering and Works Services

(1,135,354)

B9407

Busselton Senior Citizens – Contributions

111,300

C1512

Port Geographe Boat Ramp Renewal Works – Capital Grant (State)

(110,000)

C2523

Broadwater Beach Coastal Protection Stage 1 of 4 – Capital Grant (State)

(30,000)

C3020

Donated Assets Parks, Gardens & Reserves

329,133

C3113

Busselton Tennis Club – Infrastructure – Contribution

80,000

C3122

Rails to Trails - Continuation of Implementation Plan – Capital Grant (Lotteries Commission)

(300,000)

C3168

Busselton Foreshore Jetty Precinct – Capital Grant

95,924

C3186

Lou Weston Oval – Courts – Contributions

(235,000)

F0019

College Avenue – MR Capital Grant

144,000

S0035

Strelly Street / Barlee Street Roundabout – MR Capital Grant

33,738

S0051

Causeway Road / Rosemary Drive Roundabout – MR Capital Grant

(333,336)


 

S0064

Peel Terrace (Stanley Pl/Cammilleri St Intersection Upgrade) – MR Capital Grant

(133,336)

S0069

Peel Terrace (Brown Street Intersection Upgrades) – MR Capital Grant

(66,664)

S0070

Peel & Queen Street Roundabout Service Relocation – MR Capital Grant

(133,336)

S0071

Ludlow-Hithergreen Road Safety Improvements – Fed Capital grant

461,200

S0072

Kaloorup Road - Reconstruct and Seal Shoulders – MR Capital Grant

100,000

T0019

Wonnerup South Road - Reconstruct and Widening (narrow seal) – RTR Capital Grant

(416,360)

T0085

Yoongarillup Road - Reconstruct Intersection at Vasse H/Way – RTR Capital Grant

(140,000)

T0086

Yoongarillup Road - Reconstruct & Widen (Western Section) – RTR Capital Grant

(985,400)

V0002

Eastern Link - Busselton Traffic Study – Capital Grant (Federal)

400,000

 

Capital Expenditure

7.    As at 29 February 2020, there is an underspend variance of 37.5% or $14.8M in total capital expenditure with YTD actual at $24.7M against the YTD amended budget of $39.5M.

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

 

Cost Code

Cost Code Description

Variance
YTD

Land

(71,308)

10370

Busselton Cemetery

(71,308)

Buildings

4,074,956

B9516

Busselton Library Upgrade

297,125

B9109

Hithergreen Building Renovations

45,928

B9300/1/2

Aged Housing Capital Improvements (Winderlup, Harris Rd)

94,179

B9407

Busselton Senior Citizens

695,270

B9556

NCC Upgrade

41,665

B9591

Performing Arts Convention Centre

164,649

B9596

GLC Building Improvements

262,119

B9604

Womens Change Facility Bovell

(27,882)

B9606

King Street Toilets

99,849

B9610

Old Butter Factory

(123,732)

B9716 & B9717

Airport Terminals

2,475,636

B9808

Busselton Jetty Tourist Park Upgrade

93,792

Plant & Equipment

2,313,856

10000

Members of Council

40,000

10250

Information & Communication Technology Services

35,000

11156

Airport Development Operations

1,173,897

11402

Plant Purchases (P10)

495,000

11403

Plant Purchases (P11)

115,555

11404

Plant Purchases (P12)

320,000

11407

P&E - P&G Smart Technologies

75,000

11500

Operations Services Administration

35,000

Furniture & Office Equipment

566,566

10250

Information & Communication Technology Services

416,644

10625

Art Geo Administration

(35,000)

11156

Airport Development Operations

149,309

Infrastructure By Class

12,092,067

 

Roads

2,530,195

 

Bridges

248,000

 

Car Parks

844,249

 

Footpaths & Cycleways

511,339

 

Parks, Gardens & Reserves

6,610,333

 

Drainage

99,840

 

Regional Airport & Industrial Park Infrastructure

1,248,110

 

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 completed and represent a timing difference.

 

Proceeds from Sale of Assets

8.    There is a variance for the proceeds from sale of assets of ($301K), due to timing in the changeover of vehicles and plant.

 

Transfer to Restricted Assets

9.    There is a variance in transfers to restricted assets of $419K more than amended budget. The reasons for this are as follows:

·    Transfer to deposits and bonds of $62K 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 $33K 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;

·    Additional bonds of $321K were received in relation to the next stage of the Dunsborough Lakes development.

               

Transfer from Restricted Assets

10.  There is a variance in transfers from restricted assets of $878K more than amended budget.   The main reason for this is as follows:

·    Transfer from Roadwork Bonds of $814K 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

11.  There is a variance for transfer from reserves of $5MK less than amended budget. The reasons for this are as follows:

·    100 – Airport Infrastructure Renewal Reserve ($93K) – Work for installation of bird netting is still being finalized, however we are able to transfer half per the agreement.  This will be done for March accounts;

·    409 – Geographe Leisure Centre Building Reserve ($400K) – Project B9596 for general building improvements.  Approximately $130K worth of work has been spent to date and will be transferred in March;


 

·    110 – Jetty Maintenance Reserve ($850K) – has not occurred due to works not being undertaken on cost code C3497 (part of the Parks, Gardens & Reserves variance shown above), for the following reasons:

i.  The previous expenditure figure was based on the 50 year plan.

ii. The 5 year structural review undertaken in 2019/2020 discovered that the Jetty was in better condition than forecast in the 50 year plan.  Capital works planned for 2020 have been deferred to 2030.

iii.               Requests for Tenders issued for maintenance works per the 5 year plan are to be awarded at the Council meeting on 29 January 2020.

iv.              As a result budget figures have been revised for next the 5 financial years to reflect the 5 year plan.

·    137 – Major Traffic Improvements Reserve ($250K) – Project B0002 for the Eastern Link Project is on-going.  Approximately $1.7M has been spent, of which $400K grant funding has been received.  In March approximately $1M will be transferred;

·    127 – New Infrastructure Development Reserve ($363K) – This reserve is funding 10 projects at the moment, none of which are at a state of completion to activate a transfer;

·    133 – Valuation & Corporate Expenses Reserve ($110K) – the transfer to cover the $97K bill from the Electoral Commission and approximately $4K in internal staff costs has not yet occurred.  This will appear in the March accounts;

·    121 – Waste Management Facility and Plant Reserve ($2.95M) – The works for the Transfer station plus the site rehabilitation jobs that have not progressed, are the biggest cause of this variance.  It is forecast that these jobs will be deferred until next financial year.

 

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 29th February 2020 the value of the City’s invested funds totalled $78.98M, up from $77.48M as at 31st January. The increase is due to funds being transferred to the 11am account on a temporary basis until required for operational purposes.

 

During the month of February four term deposits totalling the amount of $9.5M matured. Two deposits were closed totalling $6.0M, one for operational purposes and the other as the Commonwealth Bank that owns Bankwest will now not allow Bankwest to hold corporate deposits such as ours. Those rolled were renewed for a further 151 days at 1.53% 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) increased by $7.5M with funds being transferred in mainly being from closed term deposits to be held until required in the coming month.

 

The balance of the Airport Development ANZ and WATC cash accounts remained steady.

 

The RBA announced no rate change in February but they did lower rates by 0.25% in March, and further reductions are very probable.

 


Chief Executive Officer – Corporate Credit Card

Details of transactions made on the Chief Executive Officer’s corporate credit card during February 2020 are provided below to ensure there is appropriate oversight and awareness.

 

Date

$ Amount

Payee

Description

04-Feb-20

192.41

Airport Security Parking

Parking - PD funded LGCOG & Study Tour*

05-Feb-20

550.00

Sticky Tickets/Busselton Chamber of Commerce

Business Council of Aust Luncheon (Archer, Hicks, Carter, Barret-Lennard, Cronin)

05-Feb-20

68.68

Airport Security Parking

Parking - PD funded LGCOG & Study Tour*

06-Feb-20

947.51

Hertx Australia

Car Hire for LGCOG - PD funded*

17-Feb-20

50.00

Grape Bar

Meals LGCOG & Melbourne Study Tour*

17-Feb-20

39.00

Salamanca Food Fair

Meals LGCOG & Melbourne Study Tour*

18-Feb-20

148.00

La Spaghetteria

Meals Melbourne Study Tour

18-Feb-20

76.70

Salamanca Wharf Hotel

Accom LGCOG*

18-Feb-20

68.28

BP Hobart Airport

Fuel LGCOG*

19-Feb-20

61.64

GM Cabs Pty Ltd

Taxi Fares

18-Feb-20

21.00

Spotto

Taxi Fares

19-Feb-20

663.00

Travel Insurance Direct

CEO's Travel Insurance - PD funded*

19-Feb-20

77.49

Black Cab

Taxi Fares

19-Feb-20

23.80

Café Excello

Meals Melbourne Study Tour

19-Feb-20

605.00

Company Director Sydney

Membership Renewal - PD funded*

20-Feb-20

144.83

Hotel Windsor

Accom - Study Tour to Melbourne

20-Feb-20

48.00

MYKI Discount Centre

Public Transport Study Tour Melbourne

24-Feb-20

16.50

Sticky Tickets/Busselton Chamber of Commerce

Jetstar Marketing Presentation

25-Feb-20

16.50

Sticky Tickets/Busselton Chamber of Commerce

Jetstar Marketing Presentation

 

3,818.34

 

 

*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 29 February 2020, the City’s financial performance is considered satisfactory.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Council

104

22 April 2020

16.2

Attachment a

Investment Report February 2020

 


Council

109

22 April 2020

16.2

Attachment b

Financial Activity Statement February 2020

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Council                                                                                      135                                                                   22 April 2020

16.3           LOCAL GOVERNMENT HOUSE TRUST - DEED OF VARIATION

STRATEGIC GOAL

6. LEADERSHIP Visionary, collaborative, accountable

STRATEGIC OBJECTIVE

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

SUBJECT INDEX

Deeds

BUSINESS UNIT

Finance and Corporate Services

REPORTING OFFICER

Director Finance and Corporate Services - Tony Nottle

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   Deed of Variation - Local Government House Trust

Attachment b    Excerpt - Clause 12 of Trust Deed 1994  

 

OFFICER RECOMMENDATION

That Council:

1.         consent to the attached Deed of Variation for the Local Government House Trust; and

2.         advise the Board of Management – Local Government House Trust of the Council’s consent to vary the Trust Deed.

 

EXECUTIVE SUMMARY

The CEO of the Western Australian Local Government Association (WALGA) has written to the City’s CEO, seeking the Council’s consent by formal resolution to a variation to the Trust Deed for the Local Government House Trust (The Trust).

 

The City of Busselton is a unit holder and beneficiary to The Trust, holding 7 units as advised in WALGA’s recent Quarterly Report Q4 2019.

 

As a beneficiary, the City is requested to consent to the attached Deed of Variation supported by a resolution of Council and to communicate this consent to WALGA in writing.

 

BACKGROUND

The Trust was created by Deed in 1980 for the purpose of providing accommodation for WALGA and its predecessors.  93% of Councils contributed to create a Trust comprising of 620 units.

 

WALGA are requesting consent for the Trustee to formally execute the attached Deed of Variation supported by a resolution of Council and to communicate this consent in writing.

 

Under the Deed, as amended, WALGA is the Trustee and the unit holders are the beneficiaries. The Trustee holds the property and associated monies “upon Trust” and in proportion to the units provided.  The commencement date of the current Deed is 17 February 1993, with the completion (vesting) date being 79 years from commencement.

 

Key points include:

 

·    Ownership of the building has always been within the Trust which is a separate legal entity to WALGA.

 

·    The Trust is a unit trust where the 132 unit holders are the beneficiaries and WALGA is the trustee.  The Trust owns the building (170 Railway Parade, West Leederville) on behalf of the beneficiaries. A total of 620 units fully paid were issued.

 

·    The current Deed commenced in 1993 and was amended in 2002 to reflect the merger of the metropolitan and country associations into WALGA.

 

·    Upon liquidation, the unit holders are entitled to a pro rata share of the trust’s net assets.  The end distribution per unit will equal the liquidated value of net assets divided by the total number of units.

OFFICER COMMENT

Officers are proposing that Council consent by formal resolution to a variation to the Trust Deed for the Trust.

 

The Trust exists primarily to provide building accommodation for WALGA. Since January 2014, the Trust has provided WALGA with accommodation at 170 Railway Parade West Leederville.

 

The building fulfils an essential requirement to provide suitable accommodation for WALGA and its staff, while representing a long-term investment opportunity through rental income and long term capital growth. 

 

The Trust is exempt from income tax on the basis of being a State/Territory Body (STB) pursuant to Division 1AB of the Income Tax Assessment Act 1936.

 

Trust Deed amendments set out in the Deed of Variation are based on legal advice and are intended to assist the Trust’s income tax exempt status by strengthening the position that the Trust is a STB.

Legal advice identified that the Trustee’s ability to retire and appoint a new Trustee might affect the Trust’s classification as a STB. This view, while based upon highly technical grounds, is a risk nonetheless.

Subsequently the Deed of Variation aims to strengthen the position that the Trust is a STB for tax purposes through the following amendments:

1.            removing the existing Trustee’s power to retire and appoint a new Trustee (Clause 2.1 and            2.2 (22.3) of the Deed of Variation);

2.            enabling the beneficiaries to appoint and remove a Trustee (Clause 2.2 (22.4) of the Deed of
                Variation); and

3.            ensuring that the Board of Management is the ‘governing body’ of the Trust (Clause 2.3 of             the Deed of Variation).


The three proposed amendments when applied to the relevant clauses inserted by the Deed of Variation dated 5 June 2002 will subsequently read as follows (proposed amendments shown in bold text):

 

1. Variation 2.1 amends clause 22.1 to point to additional clause:

 

22.1 Any Trustee of the Trust may retire as Trustee of the Trust. The Subject to clause 22.3, the right to appoint any new or additional trustee or trustees of the Trust is hereby vested in the retiring or continuing trustee. A corporation or incorporated association may be appointed as Trustee of the Trust.

 

2. Variation 2.2 inserts two new clauses:

 

22.3 The retiring or continuing trustee shall only be entitled to appoint any new or additional trustee of the Trust with the consent of not less than 75% of the Beneficiaries.

 

22.4 The Beneficiaries may at any time by Special Resolution:

 

         (a) remove a Trustee from the office as Trustee of the Trust;

                and

(b) appoint such new or additional Trustee.

 

3. Variation 2.3 insert a new clause 13A

 

13A Delegation to the Board of Management

                       

Unless the Beneficiaries otherwise direct (such direction to be given by not less than 75% of the Beneficiaries), the Trustees shall delegate all of the powers authorities and discretions contained in subclauses (a) to (x) of clause 12 to the Board of Management. The Trustees shall, at the direction of the Board of Management, do such things as may be necessary to give effect to the exercise of a power, authority or discretion by the Board of Management.

 

The first two amendments outlined above remove powers granted to the Trustee in the 2002 Deed Variation resulting from the merger to a single Association representing WA Local Governments. These amendments which previously facilitated the transfer of trusteeship to the then new Western Australian Local Government Association are removed, but with the clarification that any appointment must be with the consent of the beneficiaries.

 

The final amendment intends to confirm that power rests with the Board of Management. As the Board of Management comprises Local Governments, this satisfies the requirements of a STB for tax purposes. This amendment reflects the actual operation of the Trustee in implementing the decisions of the Board of Management whilst retaining sufficient operational discretion to place and renew investments and pay suppliers.

 

These amendments provide greater power to beneficiaries through the Board of Management, and as such it is anticipated they will be considered acceptable.

Statutory Environment

The Trust is established under the Trustees Act 1962.

 

Relevant Plans and Policies

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

Financial Implications

There are 620 units issued to Local Governments in WA of which the City of Busselton has been issued with 7 units in the Trust.  The value of the 7 units as at 30 June 2019 is $124,636.87.

Stakeholder Consultation

As this matter has to be addressed by the majority of Local Governments, this request from WALGA was placed on the Agenda to be discussed at the South West Zone of WALGA at its meeting held in Nannup on 28 February 2020. No concerns were raised by participating local governments.

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 choose not to consent to the proposed variation to the Deed of Variation for the Local Government House Trust.

 

This option however is not recommended. It is in the City’s best interest to support the Trust Deed Amendment to provide surety to the STB status of the Trust.

 

CONCLUSION

Due to the fact that the recommendation indicates support to amend the Trust Deed to provide clarity around the STB status of the Trust it is recommended that this be supported.

As a beneficiary, the City of Busselton is a unit holder of value as discussed within the Financial Implications and this essentially, protects the City’s interests.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The Board of Management – Local Government House Trust will be advised of Council’s consent to vary the Trust Deed upon endorsement by Council.


Council

140

22 April 2020

16.3

Attachment a

Deed of Variation - Local Government House Trust

 


 


 


 


 


Council

146

22 April 2020

16.3

Attachment b

Excerpt - Clause 12 of Trust Deed 1994

 


 


 


 


 


 


Council                                                                                      149                                                                   22 April 2020

16.4           2019/20 BUDGET REVIEW

STRATEGIC GOAL

6. LEADERSHIP Visionary, collaborative, accountable

STRATEGIC OBJECTIVE

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   19-20 Budget Review Summary  

 

OFFICER RECOMMENDATION

That the Council, pursuant to Regulation 33A of the Local Government (Financial Management) Regulations, adopts the 2019/20 Annual Budget Review as presented within this report.

 

EXECUTIVE SUMMARY

Between January and March in each financial year, a local government is to carry out a review of its annual budget for that year. The Council is required to consider the review submitted to it and determine (by absolute majority) whether or not to adopt the review, any parts of the review or any recommendations made in the review within 30 days of the review being undertaken.

 

BACKGROUND

The requirement for a local government to carry out an annual budget review is prescribed via Regulation 33A of the Local Government (Financial Management) Regulations.

 

The purpose of an annual budget review is to ensure that a local government conducts a review of its financial performance at an appropriate time in the financial year. This is to identify significant budget variances and recommend remedial action as necessary, prior to the end of the financial year.

This report, based on the City’s financial performance for the financial year to date as at 29 February 2020, has been compiled to fulfil the statutory reporting requirements of the Local Government Act and associated Regulations in respect of the annual budget review process.

OFFICER COMMENT

The budget review process was conducted over the last three weeks of March, via a series of workshop meetings with each of the manager/co-ordinator groups across the entire organisation (14 in total).  During the first half of the process, although there was awareness of the COVID-19 crisis escalating in some parts of the world, the prevailing view of staff at the time had not yet been significantly altered such that their financial forecasting to 30th June was negatively influenced.  In fact, many predictions were still confidently positive in terms of activities and projects that were still predicted to go ahead.

 


 

During the latter part of the process, in the 3rd week and part of the last week of March, the COVID-19 crisis changed dramatically and practically on a daily basis.  As result of the rapidly deteriorating global and local situation, the financial outlook in the remaining workshops changed to one of drastically reduced activity, cancellation or deferment of projects, and closure of outstations such as libraries and recreation centres.

 

As such, compiling a consolidated financial forecast to the end of June from the results of the workshop meetings has been rendered somewhat academic and irrelevant. However, this assessment gives the Council a clearer picture of the City’s current position prior to the COVID-19 crisis.

 

The attached report outlines the variations from the existing amended budget position on a line by line basis, showing a total positive net change to the budgeted net current position of approximately $402K.

Statutory Environment

Regulation 33A.                Review of budget

        (1)      Between 1 January and 31 March in each financial year a local government is to carry out a review of its annual budget for that year.

     (2A)      the review of an annual budget for a financial year must —

                        (a)      Consider the local government’s financial performance in the period beginning on 1 July and ending no earlier than 31 December in that financial year; and

                        (b)      Consider the local government’s financial position as at the date of the review; and

                        (c)      Review the outcomes for the end of that financial year that are forecast in the budget.

        (2)      Within 30 days after a review of the annual budget of a local government is carried out it is to be submitted to the council.

        (3)      A council is to consider a review submitted to it and is to determine* whether or not to adopt the review, any parts of the review or any recommendations made in the review.

        (4)      Within 30 days after a council has made a determination, a copy of the review and determination is to be provided to the Department.

                   *Absolute majority required.

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

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

Options

As an alternative to the proposed recommendation, the Council could not adopt the budget review report. If Council is minded to this option, officers can assist on the drafting of a suitable alternative motion for adoption before the statutory due date of 30 April 2020.

CONCLUSION

As at YTD February, 2020 the City’s overall financial performance was considered satisfactory.  Projections resulting from budget review process during March in consultation with all manager/co-ordinator groups across all parts of the City, indicated a potential positive impact on closing net current position as at 30 June 2020, in the order of approximately $402K.   

 

In the latter parts of the review process and subsequent to it, but before finalisation of this report, the COVID-19 global pandemic crisis escalated sharply and began to have immediate significant negative impacts across all operations of the City. 

 

This has rendered the review and projections somewhat irrelevant. 

 

In the lead up to finalisation of this report, due to the worsening crisis, it has been impossible to make any further realistic projections to 30/6/2020 due to unavailability of key staff to assist with financial predictions. However, what has been presented gives Council an idea of the current position prior to the uncertainty occurring with the COVID-19 crisis.  What can be said with relative confidence is that the City will undoubtedly be in an operational deficit position, with many of the capital projects either being scaled back or deferred.

 

Components of the unspent capital and operating expenditure budgets are currently being assessed for re-listing in the Council’s 2020/21 draft budget.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The officer recommendation will be implemented by 30 April 2020.

 

 


Council

152

22 April 2020

16.4

Attachment a

19-20 Budget Review Summary

 


 


 


Council                                                                                      155                                                                   22 April 2020

16.5           PROPOSED NEW RATES PAYMENT OPTIONS

STRATEGIC GOAL

6. LEADERSHIP Visionary, collaborative, accountable

STRATEGIC OBJECTIVE

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

SUBJECT INDEX

Rates

BUSINESS UNIT

Rates

REPORTING OFFICER

Rates Coordinator - David Nicholson

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

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

Nil

 

OFFICER RECOMMENDATION

That the Council acknowledge and note the City of Busselton will now provide an option of weekly, fortnightly and monthly payment options for ratepayers to assist households and business budgets for the payment of rates.

 

EXECUTIVE SUMMARY

In addition to the existing annual rates full and 4 bi-monthly instalment options, it is proposed to implement new weekly, fortnightly and monthly payment options. This is to assist ratepayers with their finances, reduce the amount of unpaid rates and to meet what is an ever-growing demand by the community.

 

BACKGROUND

Ratepayers have previously only had the ability to pay their rates in full by the due date in any given year, or 4 bi-monthly instalment option. The City has received numerous requests from ratepayers seeking to pay their rates on a weekly, fortnightly or monthly basis so that they could better budget their finances by making payments in line with their salaries and wages.

 

Public utilities such as the Water Corporation and Synergy also provide this option to their customers.

 

There are a number of other Councils, such as the City of Cockburn and the City of Fremantle, who also offer these types of payment options. The City of Cockburn has experienced a 17% take up of these new options since its introduction. As part of assisting the ratepayers of the City of Busselton, it is considered that this option should also be made available to them.

 

Council resolved at its special meeting on 1 April 2020 (C2004/001), to consider a range of measures to assist the community with the effects of the COVID-19 pandemic. One of these measures was to introduce weekly, fortnightly and monthly payment options. Council also resolved to delegate the power to the CEO to develop and implement a COVID-19 Financial Hardship Policy as part of these measures.

 

OFFICER COMMENT

It is intended to offer ratepayers the ability to pay their annual rates via new options of 40 weekly, 20 fortnightly or 10 monthly payments. These payments are to be made via direct debit from a ratepayer’s nominated account.

Allowing payment of annual rates on a weekly, fortnightly or monthly basis will be of substantial financial assistance to a number of ratepayers as they would not need to find large sums of money to meet the full payment when it falls due or the 4 instalment payment amounts.

 

The benefit to the City in introducing these options for the payment of rates is that this will reduce the risk of experiencing a large amount of unpaid rates, which in turn will reduce the number of follow-up reminder and final notices needing to be issued and possible instigation of legal debt recovery proceedings. It is clear from feedback of residents and ratepayers that these types of options will be well received. This is even more significant since the outbreak of COVID-19.

 

Council has already endorsed the introduction of these options at its special meeting held on 1 April 2020. Council endorsed the introduction of these options until 30 June 2020 with no fees and charges to be implemented for ratepayers taking up the option for the 2019/20 financial year.

Statutory Environment

Section 6.45 of the Act provides option for payment of rates or service charges. Moreover, section 6.45(1)(b) allows a rate or service charge to be paid by such other method of payment by instalments as is set forth in the local government annual budget.

Relevant Plans and Policies

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

Financial Implications

Prior to the COVID-19 crisis, modelling was carried out to determine the fees and charges associated with the introduction of the new payment options. The method was to only charge the equivalent of the 4 instalment option that is currently available. It was proposed to raise the following interest and administration fees for these options to ensure that there would not result in any loss of income for Council:

 

PAYMENT OPTION                           INTEREST RATE                  ADMINISTRATION FEE

Weekly                                                 3.51%                                    $0.40 per payment

Fortnightly                                          3.51%                                    $0.78 per payment

Monthly                                               4.44%                                    $3.66 per payment

 

However, since the development of COVID-19 and the adoption of Council’s Financial Hardship Policy, it is proposed that these charges will be introduced without charge for the remainder of the financial year.

 

Council will then be able to consider if any fees and charges would need to be imposed for the 2020/21 financial year when considering its budget.

 

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 such risks have been identified.

Options

As this item is for Council information and previously discussed during its Special Meeting held on 1 April 2020, no other options are necessary.

CONCLUSION

That Council acknowledges that the City will now provide a weekly, fortnightly and monthly payment option for rates payments for the remainder of the 2019/20 financial year.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

It is estimated that these options will be able to be implemented within the month of April.   


Council                                                                                      159                                                                   22 April 2020

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

Director Finance and Corporate Services - Tony Nottle

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 Running SAT Reviews  

 

OFFICER RECOMMENDATION

 

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

·         17.1.1    State Administrative Tribunal Reviews 

·         17.1.2    Current Active Tenders 

·         17.1.3    Donations, Contributions and Subsidies Fund – March 2020 

 

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 

 

A summary of the current State Administrative tribunal reviews is attached (Attachment A).

17.1.2       Current Active Tenders 

 

Note: Information in italics has previously been provided to Council, and is provided for completeness.

 

RFT14/19 DESIGN AND TECHINICAL SERVICES – BUSSELTON ENTERTAINMENT ARTS AND CULTURAL HUB

 

·    Requirement – to provide design and technical services for the Busselton Entertainment Arts and Creative Hub.

·    Following the Expression of Interest (EOI01/19) process for making a preliminary selection among prospective tenderers, the City of Busselton invited tenders from Box Architects, Kerry Hill Architects, Peter Hunt Architects, Willow and With Architecture.

·    The Request for Tender closed on 29 November 2019. 

·    The value of the contract is expected to exceed the CEO’s delegated authority under Delegation DA 1-07 (previous delegation reference LG3J) and will require Council approval.

·    At the Council meeting on 29 January 2020 Council accepted the tender from Kerry Hill Architects Pty Ltd as the most advantageous tenderer (Successful Tenderer), subject to minor variations to be negotiated in accordance with Regulation 20 of the Local Government (Functions and General) Regulations 1996 (FG Regs) (C2001/016).  Council delegated power and authority to the CEO to:

-      negotiate and agree with the Successful Tenderer minor variations in accordance with Regulations 20 of the FG Regs subject to such variations and the final terms not exceeding a lump sum contract price of $1,979,440;        

-      subject to the above, enter into contracts with the Successful Tenderer for supply of the relevant goods and services.

·    Contract negotiations are ongoing and contract documents currently being finalised. It is expected that the contract will be entered into in April 2020.

 

RFT21/19 SUPPLY OF CLEANING CHEMICALS AND PAPER CONSUMABLES

 

·    Requirement – the supply of cleaning chemicals and paper consumables to City of Busselton owned and managed facilities.

·    A Request for Tender was advertised on 26 October 2019 with a closing date of 21 November 2019. 

·    Five submissions were received.

·    The value of the contract is not expected to exceed the CEO’s current delegated authority under Delegation DA 1-07.

·    The evaluation has been completed and it is expected that a final decision will be made by the CEO in April 2020.

 

PQS02/20 SUPPLY AND MAINTENANCE OF PRINTERS AND SCANNERS – REQUEST FOR APPLICATIONS TO JOIN A PANEL OF PRE-QUALIFIED SUPPLIERS

 

·    Requirement – supply and maintenance of printers and scanners.

·    The PQS was advertised on 1 February 2020 with a closing date of 20 February 2020. 

·    Four applications were received.

·    In accordance with delegation DA 1-10 the CEO has authority to establish the panel and to accept applications to join the panel.

·    The Evaluation Panel is currently evaluating applications and it is expected that a panel will be established by the CEO under delegation in April 2020.

 

RFT02/20 BUSSELTON LIBRARY UPGRADE

 

·    Requirement – upgrade of the Busselton Library (the tender sought prices for 2 stages of the project).

·    A Request for Tender was advertised on 29 February 2020 with a closing date of 24 March 2020. 

·    Three submissions were received, all of which exceeded the City’s budget for this project.

·    Under Regulation 18(5) of the Local Government (Functions and General) Regulations 1996 a local government may decline to accept any tender.

·    The power to decline to accept any tender has been delegated to the CEO pursuant to Delegation DA 1-07.

·    The evaluation has been placed on hold, allowing the opportunity for pre-qualified suppliers on the PQS 03/20 SUPPLY OF CONSTRUCTION SERVICES panel to also provide quotations.

 


 

PQS03/20 SUPPLY OF CONSTRUCTION SERVICES - REQUEST FOR APPLICATIONS TO JOIN A PANEL OF PRE-QUALIFIED SUPPLIERS

 

·    Requirement – construction works.

·    The City’s intent is to establish 3 categories or sub-panels for supply of building/construction works with a value of up to $1,250,000. These categories or sub-panels are:

Sub-Panel A

Contract value $1 - $250,000;

Sub-Panel B

Contract Value $251,000 - $750,000;

Sub-Panel C

Contract value $750,001 - $1,250,000;

(Sub-Panels).

·    Only Pre-Qualified Suppliers appointed to a Sub-Panel will be invited to quote for building/construction work within that Sub-Panel range. In other words, if 5 Pre-Qualified Suppliers are accepted onto Sub-Panel A, the City intends to invite quotations for a specific building/construction project within that category (i.e. contract value $1 - $250,000) from only those 5 Pre-Qualified Suppliers.

·    Applicants may apply to be accepted onto any one or more of the Sub-panels.

·    The PQS was advertised on 26 February 2020 with a closing date of 12 March 2020. 

·    Ten submissions were received.

·    In accordance with delegation DA 1-10 the CEO has authority to establish the panel and to accept applications to join the panel.

·    The Evaluation has been completed and a panel of pre-qualified suppliers established by the CEO under delegation.

·         The CEO has disclosed a financial interest in respect to this item and will sub-delegate the approval of the tender to the Director of Finance and Corporate Services.

 

RFT04/20 LIVING STREAMS DESIGNS FOR THE LOWER VASSE RIVER

 

·    Requirement – the preparation of detailed environmental designs for the restoration and re-design of an 800m section of the Lower Vasse River.

·    A Request for Tender was advertised on 28 March 2020 with a closing date of 16 April 2020. 

·    The value of the contract is not expected to exceed the CEO’s current delegated authority under Delegation DA 1-07.

17.1.3       Donations, Contributions and Subsidies Fund – March 2020 

 

The Council allocates an annual budget allowance to the Donations, Contributions and Subsidies (Sponsorship Fund).  This is provided such that eligible groups and individuals can apply for and receive sponsorship to assist them in the pursuit of endeavors that bring direct benefit to the broader community.  Allocation of the funds is delegated to the Chief Executive Officer, in accordance with published guidelines and funding availability.     

 

Three applications were supported in March 2020 totaling $500.00 as outlined in the table below:


 

Recipient

Purpose

Amount

 

Gail Kearney Busselton Hospice Memorial Golf Day

The Gail Kearney Memorial Busselton Hospice Charity Golf Day is a very successful fundraising event for the Busselton Hospice. Organisers are seeking a donation to assist with covering the cost of catering for participants. Despite the golf day being a ticketed event ($500 per team of 4), all funds raised are donated to Busselton Hospice Care & therefore demonstrating benefit to the local community.

Note: due to COVID-19, event has been rescheduled to September 2020.

$250.00

 

Blake Murdoch

Special circumstances : Selected to represent WA in the Under 15's state Hockey team at the national championships to be held in Bathurst

$300.00

 

Blake Murdoch

Event cancelled due to COVID-19 - cheque not issued

-$300.00

 

SW Affiliated Group Agricultural Associations

Seeking funds for the 'Discover WA' display at the Perth Royal Show in October 2020. The display will showcase the South West region.

$250.00

 

March Total

$500.00

 

 

 


Council

162

22 April 2020

17.1

Attachment a

Current Running SAT Reviews

 


 


 


 


Council                                                                                      164                                                                   22 April 2020

18.             Motions of which Previous Notice has been Given

Nil  


19.             urgent business


Council                                                                                      166                                                                   22 April 2020

20.             Confidential Matters

The reports listed below are of a confidential nature, in accordance with section 5/23(2) of the Local Government Act 1995. These reports have been provided to Councillors, the Chief Executive Officer and Directors only.

 

OFFICER RECOMMENDATION

That the meeting is closed to members of the public to discuss the following items which are confidential for the reasons as shown.

20.1           RFQ 01-20 PROVISION OF ELECTRICAL SUPPLY FOR CITY OF BUSSELTON CONTESTABLE SITES

This report contains information of a confidential nature in accordance with Section 5.23(2(c) of the Local Government Act 1995, as it contains information relating to a contract entered into, or which may be entered into, by the local government and which relates to a matter to be discussed at the meeting

 


21.             Closure