COB-RGB

 

 

 

COUNCIL AGENDA

 

Supplementary Items

 

 

 

22 April 2020

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

SUPPLEMENTARY Items FOR THE Council MEETING TO BE HELD ON 22 April 2020

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

14..... Engineering and Work Services Report. 3

14.1        BUDGET AMENDMENT REQUEST/REVIEW - ENGINEERING WORKS & SERVICES FOR APRIL 2020. 3

14.2        BUDGET AMENDMENT REQUEST/REVIEW - CITY CENTRE EASTERN LINK STAGE 1. 8

 


Supplementary Items                                                         4                                                                        22 April 2020

14.             Engineering and Work Services ReportS

14.1           BUDGET AMENDMENT REQUEST/REVIEW - ENGINEERING WORKS & SERVICES FOR APRIL 2020

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

Engineering and Works Services

REPORTING OFFICER

Director, Engineering and Works Services - Oliver Darby

AUTHORISING OFFICER

Director, Engineering and Works Services - Oliver Darby

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   Detail of Amendments  

 

OFFICER RECOMMENDATION

That the Council endorse the requested budget amendments in accordance with section 6.8(1) of the Local Government Act 1995 in relation to the following items as outlined in the report and Attachment A, resulting in a zero impact on the City’s budgeted net current position:

1.    Geographe Leisure Centre (GLC) Extra Improvements

2.    Old Butter Factory Project

3.    Port Geographe Boat Ramp Renewal Works

4.    College Avenue Cycle Path

5.    Carey Street Asphalt Overlay and Kerbing 

 

EXECUTIVE SUMMARY

This report seeks Council approval of budget amendments as detailed in this report. Adoption of the officer recommendation will result in a zero impact on the City’s budgeted net current position.

 

BACKGROUND

In accordance with section 6.8(1) of the Local Government Act 1995 a local government is not to incur expenditure from its municipal fund for an additional purpose except where the expenditure:

 

·    Is incurred in a financial year before the adoption of the annual budget by the local government;

·    Is authorised in advance by Council resolution - absolute majority required; and

·    Is authorised in advance by the Mayor in an emergency.

 

It is also good management practice to revise the adopted budget when it is known that circumstances have changed.  Approval is therefore sought for the budget adjustments detailed in the attachment for the reasons specified.

OFFICER COMMENT

Council adopted its 2019/2020 municipal budget on Wednesday 31 July 2019 with a balanced budget position.  Since then officers have identified budgets that require adjustment. 

There are five items detailed in the attachment and their net effect on the budget position is nil. These adjustments are where new expenses are matched with new grants / contributions, or where expenses are reallocated within business units to meet revised needs.

Budget Adjustment Items

 

1.      Geographe Leisure Centre (GLC) Extra Improvements – Add project scope

 

There is currently $596,400 budgeted for capital works at the GLC for financial year 2019/20. $525,900 of this is from the Geographe Leisure Centre Reserve while the remaining $43,500 represents municipal funds. To date $132,000 of planned works have been completed.

 

The remaining funds in this year’s capital budget for the GLC are for the following items:

 

•             Modification to the Mechanical Services Switch Board (MSSB) to increase power to air handling units to improve the air change rate

•             A secondary heat exchange unit to be installed to further improve ventilation rates (to bring them within Australian Institute of Refrigeration, Air Conditioning and Heating guidelines)

•             Removal of existing Stadium air-conditioning units, including removal of roof sheets

•             New secondary pump to be installed, and install additional pipework, valves and control points.  The design intent is to maintain the pool water temperature at 26-27 degrees

•             Install new temperature sensors and associated pipework and controls to monitor and control the geothermal water temperature both up and down stream of the heat exchanger

The recent closure of the GLC due to the Covid-19 pandemic has presented a unique opportunity to progress certain types of planned future works that would ordinarily impact on users of the facility. 

 

This budget amendment seeks to an additional $330,000 of capital works to the 2019/20 budget comprising the following:

 

1.    $110,000 for the installation of a Fire Indictor Panel and an Emergency Warning Intercommunication System. This project represent works to be brought forward from the 2020/21 draft budget. These works to be funded from the Geographe Leisure Centre Reserve via a top up of funds from the General Building Reserve.

 

2.    $100,000 for the refurbishment of the wet side change rooms. This project represent works rescheduled from 2020/21. These works will also be funded from the Geographe Leisure Centre Reserve via a top up of funds from the General Building Reserve.

 

3.    $100,000 for renewal works specifically associated with the cleaning and repainting of the structural steel, treating corrosion, replacing wall linings and repainting walls. This project represents works to be brought forward via scheduled planning from the 2021/22 financial year. These works will also be funded from the Geographe Leisure Centre Reserve via a top up of funds from the General Building Reserve.

 

4.    $20,000 in additional budget for a new Security System estimated to cost $50,000. $30,000 is already available in this year’s budget against Cost Code B9609 titled; GLC Stadium Expansion. This preliminary budget associated with planning for the GLC Stadium Expansion to be repurposed to be used to install a Security System at the GLC.


2.      Old Butter Factory – Increase project scope

 

There is currently $650,385 of carried forward capital budgeted works associated with the Old Butter Factory for major repairs from the 27th March 2018 fire. These works are funded from the General Building Reserve with reimbursements from an insurance claim, based on progress. To date $605,286 of planned works have been completed.

 

This amendment seeks to add additional budget totalling $150,000 for the following:

 

1.    $100,000 for structural integrity works to the building. These items were identified whilst undertaking the works associated with the fire damage. These works were required to be rectified or the building would have continued to be structurally unsound. Unfortunately these items cannot be claimed through insurance as they are a latent defect associated with the building structure.

 

2.    $50,000 in additional works to make the upper floor BSA (fire) compliant so it can continue to be used as a museum.

 

This extra budget is to be drawn down from the General Building Reserve.

 

3.      Port Geographe Boat Ramp Renewal Works (C1512) – Increase Grant Revenue       

 

There is $470,810 of capital budgeted works associated with replacing the Port Geographe Boat Ramp – Boat Launching Jetties. These works are now complete and City Officers are currently in the process of seeking payment for the $165,000 in Regional Boating Facility Scheme Grant. Due to the additional costs incurred in replacing all three finger jetties with floating pontoons an application was made under the terms of the grant agreement seeking an additional 10% in grant funding over and above the original grant amount. This submission was approved securing an extra $16,500 in grant funding to be applied to this project.    

 

4.      College Avenue Cycle Path (F0019) – Reduce Grant Revenue            

 

There is $360,000 of capital budgeted works associated with the College Avenue Cycle Path Project. These works are now nearing completion with only a small number of invoices outstanding from suppliers. Under this grant the City has already received $144,000 of the $180,000 grant as payments in advance. This project is based on a 50/50 co-contribution basis. The project will come in under budget to the value of $72,000 and as such the last progress claim totalling $36,000 will not be made. These surplus monies have already been redistributed by the Department of Transport.

 

5.      Carey Street - Asphalt Overlay & Kerbing (W0231)

 

There is $175,000 of capital budgeted works associated with the road renewal project Carey Street - Asphalt Overlay & Kerbing. With the popularity of the Busselton Foreshore, continued use of the Barnard Park Ovals and the opening of the new Tennis Centre, the scope of works for this project has changed, specifically to add in off-street car parking and a footpath.

 

To this end, a request is made to postpone the Georgette Street - reconstruction & kerbing project valued at $67,000 and reallocate these Main Roads WA Direct grant funds towards the Carey Street project.  The Georgette Street - reconstruction & kerbing project has subsequently been budgeted for completion in 2020/21.

 

It has been estimated that $236,000 is required to complete these works thus $6,000 of the original Carey Street budget totalling $175,000 can be retained in the Road Asset Renewal Reserve.

Statutory Environment

Section 6.8 of the Local Government Act 1995 refers to expenditure from the municipal fund that is not included in the annual budget. Any adjustments to a budget allocation must be made by an absolute majority decision of the Council.  Additionally, where no budget allocation exists, expenditure is not to be incurred until such time as it is authorised in advance, by an absolute majority decision of the Council.

Relevant Plans and Policies

The proposed budget amendment is supported by the City’s asset management plan, capital works program and long term financial plan.

Financial Implications

The financial implications of this recommendation are contained within the report and the attached spreadsheet detail.

Stakeholder Consultation

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

Risk Assessment

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

Options

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

CONCLUSION

Council’s approval is sought to amend the budget as per the details contained in this report.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

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


Supplementary Items

7

22 April 2020

14.1

Attachment a

Detail of Amendments

 


Supplementary Items                                                         10                                                                      22 April 2020

14.2           BUDGET AMENDMENT REQUEST/REVIEW - CITY CENTRE EASTERN LINK STAGE 1

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

Engineering and Facilities Services

REPORTING OFFICER

Manager, Engineering and Technical Services - Daniell Abrahamse

AUTHORISING OFFICER

Director, Engineering and Works Services - Oliver Darby

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   Budget Amendment Table

Attachment b    Letter from Department of Infrastructure, Transport, Cities and Regional Development – Approval of Additional Bridge Funding  

 

OFFICER RECOMMENDATION

That the Council endorse the requested budget amendment in accordance with section 6.8(1) of the Local Government Act 1995, relating to the City Centre Eastern Link Stage 1 Project, as detailed this report and Attachment A, resulting in a zero impact on the City’s budgeted net current position.

 

EXECUTIVE SUMMARY

This report seeks Council approval of budget amendments as detailed in this report and as detailed in Attachment A, in relation to the City Centre Eastern Link Stage 1 Project. Adoption of the officer recommendation will result in a nil impact on the City’s budgeted net current position.

 

BACKGROUND

In accordance with section 6.8(1) of the Local Government Act 1995 a local government is not to incur expenditure from its municipal fund for an additional purpose except where the expenditure:

 

·    Is incurred in a financial year before the adoption of the annual budget by the local government;

·    Is authorised in advance by Council resolution - absolute majority required; and

·    Is authorised in advance by the Mayor in an emergency.

It is also good management practice to revise the adopted budget when it is known that circumstances have changed.

Approval is therefore sought for the budget adjustments detailed in the report and attachment for the reasons specified in the officer comment.

OFFICER COMMENT

Council adopted its 2019/2020 municipal budget on Wednesday 31 July 2019 with a balanced budget position.  Since then officers have identified budgets that require adjustment. 

 

This budget amendment seeks to, in part, align the City Centre Eastern Link project budget to the recommendations contained in the Council Report dated 25th September 2019 titled “Award of Tender RFT11/19 Road Network Upgrade - City Centre Eastern Link Stage 1 and Stage 2A + 2B”.

 

The budget amendment specifically seeks to:

 

a)    Recognise the three (3) additional sources of funding added to the project budget, to align the overall project budget to the Tender amount, as follows:

 

i.      include an additional $40,900 in funding from City Reserve #223 being the Road Asset Renewal Reserve.

 

ii.     include an additional $250,000 in funding from City Reserve #137 being the Major Traffic Improvements Reserve.

 

iii.    include an additional $500,000 in Federal Government Bridge Renewal Grant funding, as per Attachment B, being letter of award for additional grant funding pursuant to the Causeway Road Bridge Duplication & Variation Instrument.

 

b)    Reallocate 1/3rd ($250,000) of the City’s Regional Road Group (RRG) own source contribution for the 2019/2020 Causeway Road (S0051) and grant allocation of $500,000 towards the City Centre Eastern Link Stage 1 for the 2019/20 financial year. Causeway Road 2019/2020 duplication works are to be relisted in 2020/21 budget as part of stage 2A.  

 

Below is an excerpt from the Council report of 25th September 2019 detailing the extra funding and the proposed source of that funding:

 

“City officers proposes that the variance of -$790,901.14 could be funded as follows:“

 

Description

Budget

Department of Infrastructure, Transport and Regional Development – Bridge Renewal Grant – Additional Funding - Secured

$500,000

Transfer additional funding from the Major Traffic Improvements Reserve

$250,000

Funding from the Roads Asset Reserve

*$40,901.14

TOTAL

$790,901.14

 

Note :-*Round the 40,901.14 down to $40,900.

 

Further to the above, the following amendment will adjust the budget for the City’s record keeping requirements under the Regional Road Group (RRG) funding program:

 

i.      Reduce the budget for Causeway Road / Rosemary Drive Roundabout from $1,406,680 by $750,000 to $656,680. The $656,680 represents Main Roads funding that was carried over from the 2018/19 financial year and can be outlaid on the City Centre Eastern Link Stage 1 works. The 2019/20 allocation will be spent on duplication works only being carried out under Stage 2A + 2B in financial year 2020/21.    

 

ii.     Reassign the $500,000 Main Roads Regional Road Group Causeway Road 2019/20 grant funding to a new Main Roads Cost Code titled Causeway Road Duplication. This will be held and subsequently carried over for the City Eastern Link Stage 2 works to be completed in 2020/21.

 

iii.    Assign the $250,000 1/3rd City funded contribution to the main City Centre Eastern Link project Cost Code V0002 titled; Eastern Link - Busselton Traffic Study. This money to be spent this financial year.

 

After making the above adjustments, the budget position remains unchanged.

Statutory Environment

Section 6.8 of the Local Government Act 1995 refers to expenditure from the municipal fund that is not included in the annual budget. Any adjustments to a budget allocation must be made by an absolute majority decision of the Council.  Additionally, where no budget allocation exists, expenditure is not to be incurred until such time as it is authorised in advance, by an absolute majority decision of the Council.

Relevant Plans and Policies

The proposed budget amendment is supported by the City’s asset management plan, capital works program and long term financial plan. 

Financial Implications

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

Stakeholder Consultation

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

Risk Assessment

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

Options

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

CONCLUSION

Council’s approval is sought to amend the budget as per the details contained in this report.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

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

 


Supplementary Items

11

22 April 2020

14.2

Attachment a

Budget Amendment Table

 


Supplementary Items

12

22 April 2020

14.2

Attachment b

Letter from Department of Infrastructure, Transport, Cities and Regional Development – Approval of Additional Bridge Funding