COB-RGB

 

 

 

 

 

Council Agenda

 

 

 

24 June 2020

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 24 June 2020

 

 

 

TO:                  THE MAYOR AND COUNCILLORS

 

 

NOTICE is given that a meeting of the Council will be held in the the Council Chambers, Administration Building, Southern Drive, Busselton on Wednesday, 24 June 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

 

12 June 2020


CITY OF BUSSELTON

Agenda FOR THE Council MEETING TO BE HELD ON 24 June 2020

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

1....... Declaration of Opening and Announcement of Visitors. 2

2....... Attendance. 2

3....... Prayer. 2

4....... Application for Leave of Absence. 2

5....... Disclosure Of Interests. 2

6....... Announcements Without Discussion.. 2

7....... Question Time For Public. 2

8....... Confirmation and Receipt Of Minutes. 2

Previous Council Meetings. 2

8.1          Minutes of the Council Meeting held 10 June 2020. 2

Committee Meetings. 2

8.2          Minutes of the Finance Committee Meeting held 10 June 2020. 2

9....... RECEIVING OF Petitions, Presentations AND DEPUTATIONS. 2

10..... QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN (WITHOUT DISCUSSION). 2

11..... Items brought forward for the convenience of those in the public gallery. 2

12..... Reports of Committee. 2

12.1        Finance Committee - 10/06/2020 - LIST OF PAYMENTS MADE - APRIL 2020. 2

12.2        Finance Committee - 10/06/2020 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 APRIL 2020. 2

12.3        Finance Committee - 10/06/2020 - APPLICATION FOR RATE EXEMPTION - THE FREE REFORMED CHURCH OF BUSSELTON.. 2

13..... Planning and Development Services Report. 2

13.1        APPLICATION FOR DEVELOPMENT APPROVAL (DA18/0542) - PROPOSED SINGLE HOUSE AND FIVE CHALETS - LOT 40 (61) CAUDALIE WAY, QUINDALUP. 2

14..... Engineering and Work Services Report. 2

15..... Community and Commercial Services Report. 2

16..... Finance and Corporate Services Report. 2

16.1        HOTEL DEVELOPMENT AND LEASING ARRANGEMENTS - HOTEL SITE 2, BUSSELTON FORESHORE. 2

17..... Chief Executive Officers Report. 2

17.1        COUNCILLORS INFORMATION BULLETIN.. 2

18..... Motions of which Previous Notice has been Given.. 2

18.1        MOTION TO REDUCE PROJECTED COST OF THE BEACH.. 2

18.2        MOTION FOR REPURPOSING OF REGIONAL AIRPORT DEVELOPMENT FUNDING.. 2

19..... urgent business. 2

20..... Confidential Matters. 2

21..... Closure. 2

 


Council                                                                                      6                                                                        24 June 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 10 June 2020

Recommendation

That the Minutes of the Council Meeting held 10 June 2020 be confirmed as a true and correct record.

 

Committee Meetings

8.2             Minutes of the Finance Committee Meeting held 10 June 2020

Recommendation

That the Minutes of the Finance Committee Meeting held 10 June 2020 be noted.

  

9.               RECEIVING OF Petitions, Presentations AND DEPUTATIONS

Petitions

Presentations

Deputations

 

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

 

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


Council                                                                                      8                                                                         24 June 2020

12.             Reports of Committee

12.1           Finance Committee - 10/06/2020 - LIST OF PAYMENTS MADE - 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

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 for April 2020  

 

This item was considered by the Finance Committee at its meeting on 10 June 2020, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

 

That the Council notes payment of voucher numbers M117991 – M118049, EF070825 – EF071671, T007509 – T007511, DD004087 – DD004119 together totalling $7,644,763.88

 

EXECUTIVE SUMMARY

This report provides details of payments made from the City’s bank accounts for the month of April 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 April 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 April 2020 is presented for information.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Council

10

24 June 2020

12.1

Attachment a

List of Payments for April 2020

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Council                                                                                      34                                                                      24 June 2020

12.2           Finance Committee - 10/06/2020 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 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

Financial Services

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 April 2020

Attachment b    Statement of Financial Activity April 2020  

 

This item was considered by the Finance Committee at its meeting on 10 June 2020, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 30 April 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 30 April 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 30 April 2020

The Statement of Financial Activity (FAS), for the year to date as at 30 April 2020 shows an overall Net Current Position of $8.4M as opposed to the amended budget of ($14.2M), a positive difference of $22.6M. 

 

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

0.98%

702,075

1.    Operating Grants, Subsidies and Contributions

4,116,107

3,078,887

4,977,647

33.69%

1,037,220

2.    Other Revenue

381,632

431,703

551,510

(11.60%)

(50,071)

 

 

 

 

 

Expenses from Ordinary Activities

 

 

6.70%

4,495,591

3.    Materials & Contracts

(13,301,654)

(15,913,936)

(19,058,249)

16.42%

2,612,282

4.    Other Expenditure

(2,256,506)

(2,876,755)

(4,995,811)

21.56%

620,249

5.    Allocations

1,626,014

1,811,318

2,161,452

10.23%

(185,304)

 

 

 

 

 

 

6.    Non-Operating Grants, Subsidies and Contributions

8,132,479

8,697,821

24,388,690

(6.50%)

(565,342)

 

 

 

 

 

 

Capital Revenue & (Expenditure)

 

 

38.60%

17,834,469

7.    Land & Buildings

(3,870,942)

(7,267,454)

(8,861,113)

46.74%

3,396,512

Plant & Equipment

(3,241,885)

(4,820,850)

(4,885,350)

32.75%

1,578,965

Furniture & Equipment

(376,629)

(939,380)

(1,113,069)

59.91%

562,751

Infrastructure

(13,691,355)

(28,744,185)

(38,328,246)

52.37%

15,052,830

8.    Proceeds from Sale of Assets

3,063,385

703,550

3,409,080

335.42%

2,359,835

9.    Transfer to Restricted Assets

(642,003)

(50,090)

(60,100)

(1181.70%)

(591,913)

10.  Transfer from Restricted Assets

1,675,268

0

6,319,121

100.00%

1,675,268

11.  Transfer from Reserves

8,149,866

12,597,783

35,648,783

(35.31%)

(4,447,917)

 


 

Revenue from Ordinary Activities

Year to date (YTD) actual income from ordinary activities is $702K 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 $1M (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;

·    Insurance Reimbursements (10200), $138K – mainly due to the LGIS scheme member credit refund of $127K;

·    Legal Fees Reimbursements (10500), ($65K) – 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 no amendment to remove this budgeted revenue item in 19/20 will be done;

·    Human Resources Reimbursements (10521), $50K - $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;

·    Strategic Planning Operating Grants & Subsidies (10820), ($31K) – This is remaining grant funding for the CAS project which will not be finalized until later in the year.  The remaining activities for the project will be carried over into the next budget;

·    Environmental Management Administration (10830), $232K – $170K grant received for the Revitalizing Geographe Waterways Phase 2 project earlier than budgeted, plus unbudgeted amounts of $40K for Lower Vasse River Collaborative Project from Regional Estuaries Initiatives, and $20K for Strategic Weed Action for Biodiversity Protection from Department of Primary Industries;

·    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), which was not budgeted.  Details of the cost codes for a budget amendment have not been finalised;

·    Bushfire Risk Management Planning Grants DFES (10942), $28K – 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 Contribution (10925), ($29K) – Offset by budgeted expenditure that has not occurred, to the same amount;

·    Fire Prevention DFES Contribution & Prior Period Adjustments (10940), $21K – timing difference due to prior period adjustments for late receipted contributions;

·    Wonnerup South Rd Bridge Slk 2.3 (A3440), $32K – emergency funding received from Main Roads for repairs undertaken;

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

·    Busselton Jetty Contributions (11160), $35K – bi-annual contribution more than budgeted;

·    Regional Waste Management Administration (11301), ($32K) – Contributing councils have not been invoiced as much as budgeted;

·    Operations Services Works Reimbursements (11501), $25K – Workers compensation reimbursement for wages paid;

·    Reimbursements Old Butter Factory (B1401 & B9610), $371K – Timing difference due to difficulties in predicting when LGIS would process the claims;

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

 

2.    Other Revenue is ($50K) worse than budget.  The main contributing variances are outlined in the table below:

 

Cost Code

Cost Code Description / GL Activity

Variance
YTD
$

10100

Finance & Corporate Services Support - LSL contribution not received from other LG (Offset by officer not taking LSL this FY)

(26,000)

10510

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

14,745

10591

Geographe Leisure Centre (LSL contribution not received from other LG)

(13,599)

10970

Parking Control

(44,644)

G0030

Busselton Transfer Station

53,498

G0031

Dunsborough Waste Facility

(29,873)

 

Expenses from Ordinary Activities

Expenditure from ordinary activities is $4.5M or 6.7% 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 $2.6M

 

The main contributing items are listed below, most of which being heavily influenced by the slow down in activity caused by the COVID-19 shutdowns and restrictions:

 

Cost Code

Cost Code Description / GL Activity

Variance
YTD
$

Finance and Corporate Services

163,118

10000

Members of Council

(24,512)

10500

Legal and Compliance Services

62,661

10616

Winderlup Villas Aged Housing

26,790

Community and Commercial Services

450,062

10380

Busselton Library

70,319

10590

Naturaliste Community Centre

28,411

10591

Geographe Leisure Centre

34,258

10600

Busselton Jetty Tourist Park

117,724

10625

Art Geo Administration

30,635

10630

Property and Business Development

29,607

10900

Cultural Planning

55,631

Planning and Development Services

705,907

10820

Strategic Planning

185,511

10830

Environmental Management Administration

181,959

10850

Implement Management Plans Other

81,822

10931

Protective Burning & Firebreaks-Reserves

50,246

11170

Meelup Regional Park

99,680

Engineering and Works Services

1,252,600

Various

Busselton Jetty Maintenance

461,891

12620

Rural-Tree Pruning

(23,306)

12621

Urban-Tree Pruning

(64,958)

Various

Bridge Maintenance

84,856

Various

Building Maintenance

55,476

Various

Other Infrastructure Maintenance

564,579

Various

Waste services

239,684

Various

Road Maintenance

(221,641)

Various

Reserve Maintenance

156,021

 

4.    Other Expenditure $620K 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

244,179

10000

Members of Council

135,822

10151

Rates Administration

51,017

10700

Public Relations

36,581

Community and Commercial Services

224,377

10530

Community Services Administration

169,945

Engineering and Works Services

128,165

11160

Busselton Jetty

70,830

B1223

Micro Brewery - Public Ablution

60,000

 

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 below budget by $565K with the main items impacting on this being the timing of the receipt of funding. This has been exacerbated by the delays in completing capital projects due to the COVID-19 shutdowns and restrictions.  This is largely offset with less than anticipated capital expenditure at the same time, where works have not been completed in connection with the funding.  The extent to which the works remain incomplete will represent a positive impact on net position, and the remaining funding will be carried forward in reserves to be spent in future periods in order to complete the projects.


 

Cost Code

Cost Code Description

Variance
YTD

Finance and Corporate Services

(383,315)

10239

Contributions (Program 11) - Community Facilities

(641,031)

10239

Contributions (Program 12) – Works

110,897

10250

Information & Communication Technology Services – Capital Grants (Federal)

144,956

Community and Commercial Services

65,858

C6025

Installation of Bird Netting – Capital Grant (Federal)

(92,620)

C6099

Airport Development – Capital Grant (Federal)

151,478

Planning and Development Services

(798,110)

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)

(57,410)

Engineering and Works Services

550,225

B9407

Busselton Senior Citizens – Contributions

111,300

C1512

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

60,500

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

44,554

C3186

Lou Weston Oval – Courts – Contributions

(235,000)

C3210

McBride Park - POS Upgrade – Contributions

(32,538)

C3211

Tulloh St (Geographe Bay Road) - POS Upgrade – Contributions

(90,332)

C3213

Cabarita Road - POS Upgrade – Contributions

(100,000)

C3214

Kingsford Road - POS Upgrade – Contributions

(150,653)

C3215

Monash Way - POS Upgrade – Contributions

(167,174)

F0019

College Avenue – Capital Grant (State)

144,000

S0035

Strelly Street / Barlee Street Roundabout – MR Capital Grant

31,028

S0051

Causeway Road / Rosemary Drive Roundabout – MR Capital Grant

(50,000)

S0064

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

(166,670)

S0069

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

(83,330)

S0070

Peel & Queen Street Roundabout Service Relocation – MR Capital Grant

(216,670)

S0071

Ludlow-Hithergreen Road Safety Improvements – Fed Capital grant

461,200

S0072

Kaloorup Road - Reconstruct and Seal Shoulders – MR Capital Grant

100,000

S0324

Georgette Street - Reconstruction & Kerbs – MR Capital Grant

67,000

T0019

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

104,085

T0086

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

246,350

V0002

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

400,000

Capital Expenditure

7.    As at 30 April 2020, there is an underspend variance of 49.3% or $20.6M in total capital expenditure, with YTD actual at $21.2M against the YTD amended budget of $41.8M. 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

3,467,820

B9516

Busselton Library Upgrade

244,860

B9109

Hithergreen Building Renovations

57,410

B9300/1/2

Aged Housing Capital Improvements (Winderlup, Harris Rd)

139,904

B9407

Busselton Senior Citizens

822,910

B9556

NCC Upgrade

41,665

B9591

Performing Arts Convention Centre

313,145

B9596

GLC Building Improvements

349,769

B9605

Energy Efficiency Initiatives (Various Buildings)

(28,882)

B9606

King Street Toilets

89,842

B9610

Old Butter Factory

(63,754)

B9716 & B9717

Airport Terminals

1,366,114

B9808

Busselton Jetty Tourist Park Upgrade

136,902

Plant & Equipment

1,578,965

10000

Members of Council

40,000

11156

Airport Development Operations

342,129

11402

Plant Purchases (P10)

854,970

11403

Plant Purchases (P11)

150,146

11407

P&E - P&G Smart Technologies

150,000

Furniture & Office Equipment

574,751

10250

Information & Communication Technology Services

360,626

11156

Airport Development Operations

195,974

Infrastructure By Class

15,040,830

 

Roads

2,348,429

 

Bridges

372,000

 

Car Parks

1,323,863

 

Footpaths & Cycleways

377,696

 

Parks, Gardens & Reserves

8,747,688

 

Drainage

114,005

 

Regional Airport & Industrial Park Infrastructure

1,757,150

 

In the main, many of these projects have yet to be completed and represent a timing difference.  Due to the COVID-19 crisis, many projects have also been deferred and will be relisted for completion in next year’s budget.

 

Proceeds from Sale of Assets

8.    There is a variance for the proceeds from sale of assets of $2.6M, due to difficulty in predicting timing for the settlement of the sale of the old library building land, creating a timing difference against budget.

Transfer to Restricted Assets

9.    There is a variance in transfers to restricted assets of $592K more than amended budget. The reasons for this are as follows:

·    Interest earned on government grants of $37K 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 $350K were received in relation to the next stage of the Dunsborough Lakes development;

·    Transfer of $156K representing contribution by developers, including $125K from the sale of the old library land as agreed with the developers;

·    Net transfers to deposits and bonds of $49K 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 Restricted Assets

10.  There is a variance in transfers from restricted assets of $1.7M more than amended budget.   The main reason for this is as follows:

·    Transfer from Roadwork Bonds of $849K as opposed to a budget of $0;

·    Refunds of $27K in deposits for venue hire;

·    Refunds of $12K of Jetty berthing deposits;

·    $34K of other miscellaneous refunds of bonds & deposits;

·    $500K reimbursement to muni of remaining loan funds for the tennis club project;

·    $253K of transfers related to partially completed roadworks projects.

These funds do not have a budget allocation as they dependant of external third parties and are not able to be reliably measured.

 

Transfer from Reserves

11.  There is a variance for transfer from reserves of $4.4M less than amended budget. The reasons for this are as follows:

·    100 – Airport Infrastructure Renewal Reserve ($169K) – Only partial work for installation of bird netting has been done and the car park resealing has not been completed;

·    136 – Airport Marketing & Incentive Reserve ($1.4M) – Being deferred until next financial year;

·    143 – Airport Noise Mitigation Reserve ($870K) – project deferred until 20/21 budget

·    106 – Building Asset Renewal Reserve $220K – early recoup related to partially completed works;

·    407 – Busselton Library Building Reserve $20K – partial recoup for the extension works;

·    408 – Busselton Jetty Tourist Park Reserve ($172K) – upgrade works only partially complete;

·    409 – Geographe Leisure Centre Building Reserve ($270K) – Project B9596 for general building improvements;

·    331 – Joint Venture Aged Housing Reserve $40K – works partially completed earlier than expected;

·    411 – Civic & Administration Building Reserve $38K – works partially completed earlier than expected;


 

·    110 – Jetty Maintenance Reserve ($495K) – only partially recouped, as works only partially 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;  

·    115 – Plant Replacement Reserve ($638K) – timing difference associated with recoupment for purchase of new plant;

·    137 – Major Traffic Improvements Reserve $367K – Project V0002 for the Eastern Link Project is on-going.  Approximately $1.7M has been spent, of which $400K grant funding has been received and $1M transferred to Muni;

·    132 – CBD Enhancement Reserve ($436K) – mainly due to incomplete townscape upgrade works;

·    127 – New Infrastructure Development Reserve ($123K) – This reserve is funding 10 projects at the moment, some of which are still incomplete;

·    133 – Valuation & Corporate Expenses Reserve ($12K) – the transfer to cover the $97K bill from the Electoral Commission happened in March;

·    123 - Port Geographe Waterways Management Reserve (SAR) ($327K) – Annual deed agreement not yet requested to be paid;

·    Due to cash flow requirements partially completed works were recouped from the following reserves:

i.              223 – Road Asset Renewal Reserve $1.4M;

ii.             224 – Footpaths & Cycleways Reserve $317K;

iii.            225 – Parks & Garden Reserve $126K;

iv.           302 – Community Facilities City District $415K;

v.            303 – Community Facilities Busselton $44K;

vi.           309 – Community Facilities Vasse $59K;

vii.          122 - Port Geographe Development Reserve $364K;

viii.         126 - Provence Landscape Maintenance Reserve (SAR) $64K;

ix.           128 - Vasse Newtown Landscape Maintenance Reserve (SAR) $101K;

x.            321 - Busselton Area Drainage and Waterways Improvement Reserve $35K;

xi.           102 - Coastal and Climate Adaptation Reserve $256K;

xii.          145 - Energy Sustainability Reserve $177K;

xiii.         146 - Cemetery Reserve $185K;

·    121 – Waste Management Facility and Plant Reserve ($3.82M) – 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 30 April 2020, the value of the City’s invested funds totalled $76.99M, down from $78.99M as at 31 March. The decrease is due to a partial closure of a term deposit.

 

During the month of April, seven term deposits totalling the amount of $22.0M matured. One deposit was partially closed totalling $2.0M to provide funds for standard operations. Remaining deposits were renewed for a further 117 days at 0.98% on average.

 

The balance of the 11am account (an intermediary account which offers immediate access to the funds compared to the term deposits and a higher rate of return compared to the cheque account) remained steady.

 

The Airport Development accounts remain steady.

 

The official cash rate in April remains steady at 0.25%. This will have a strong impact on the City’s interest earnings for the foreseeable future. Further drops are unlikely at this stage.

 

Chief Executive Officer – Corporate Credit Card

There were no transactions made on the Chief Executive Officer’s corporate credit card during April 2020.

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 such risks 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 30 April 2020, the City’s financial performance, although displaying a positive net current position, is considered at risk of not meeting operational budget expectations by the end of the financial year due to the downturn in operational activity brought on by the COVID-19 global pandemic.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Council

35

24 June 2020

12.2

Attachment a

Investment Report April 2020

 


Council

52

24 June 2020

12.2

Attachment b

Statement of Financial Activity April 2020

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



Council                                                                                      56                                                                      24 June 2020

12.3           Finance Committee - 10/06/2020 - APPLICATION FOR RATE EXEMPTION - THE FREE REFORMED CHURCH OF BUSSELTON

STRATEGIC GOAL

6. LEADERSHIP Visionary, collaborative, accountable

STRATEGIC OBJECTIVE

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

SUBJECT INDEX

Exemptions & Appeals (Rates)

BUSINESS UNIT

Rates

REPORTING OFFICER

Rates Coordinator - David Nicholson

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   Letter Requesting Rates Exemption - Free Reformed Church Busselton

Attachment b    Rate Exemption Application Form

Attachment c    Rate Exemption Application - Statutory Declaration

Attachment d   Constitution - Free Reformed Church

Attachment e    Free Reformed Church Busselton Incorporated Association Extract

Attachment f    2018-2019 Audit Letter

Attachment g   108 Hawker - Site Plan  

 

This item was considered by the Finance Committee at its meeting on 10 June 2020, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

That the Council:

1.         Approve the rate exemption application from The Free Reformed Church of Busselton under section 6.26 (2)(d) of the Local Government Act 1995 on 108 Hawker Approach, Yalyalup effective 1 July 2019; and

2.         Agree that this rate exemption is to continue where The Free Reformed Church of Busselton confirms in writing by the 30 April annually that they continue to own and use the property for the purposes stated in the application.

 

EXECUTIVE SUMMARY

An application has been received from The Free Reformed Church of Busselton for rate exemption for the property at 108 Hawker Approach, Yalyalup, which is used as the residence for their minister. On the basis of the application, this report recommends that the application for exemption be granted effective 1 July 2019 in accordance with Section 6.26(2)(d) of the Local Government Act 1995.

 

BACKGROUND

The Free Reformed Church of Busselton is a religious organisation that previously owned a property at 9 Salmon Close, West Busselton. This property was granted a rate exemption in August 2013 as it was being used as the residence for the minister. In August 2019, this property was sold as they had purchased 108 Hawker Approach, Yalyalup, earlier in May 2019 for a new minister’s residence.

 

In September 2019, the Church contacted the City and was provided with the necessary rate exemption application documentation. The City officially received the exemption application in February 2020.

 

Despite the delay in making the application, the Church is seeking rate exemption effective from 1 July 2019.

OFFICER COMMENT

The Act states that all land is rateable except in certain circumstances. However, Section 6.26(2)(d) of the Act states that:

 

land used or held exclusively by a religious body as a place of public worship or in relation to that worship, a place of residence of a minister of religion, a convent, nunnery or monastery, or occupied exclusively by a religious brotherhood or sisterhood” is not rateable.

 

As the property 108 Hawker Place, Yalyalup, is being used as a residence and office for the Minister of the Church, it is considered to be rate exempt under section 6.26(2)(d) of the Act.

 

No physical inspection of the property has been carried out as a Statutory Declaration on its use has been provided, which is sufficient.

Statutory Environment

Section 6.26(2)(d) of the Act specifically states that land used or held exclusively by a religious body as a place of public worship or in relation to that worship, a place of residence of a minister of religion, a convent, nunnery or monastery, or occupied exclusively by a religious brotherhood or sisterhood is exempt from rates.

Relevant Plans and Policies

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

Financial Implications

If rate exemption is approved effective 1 July 2019, there would be a reduction of $2,173 to the 2019/2020 rating and specified area rate income. There would be similar reductions for future financial periods if the property is continued to be used for the purpose of the Church.

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 of a medium or greater level have been identified.

 

However, if Council choses to not approve the application for rate exemption then staffing and/or legal costs may be incurred if the applicant refers the matter to the State Administrative Tribunal for review of the decision.

Options

As an alternative to the proposed recommendation the Council could decline the rate exemption application on the basis that it considers the property to be rateable under the Act. As stated above, this is not recommended based on the risks associated with declining the application.

CONCLUSION

It is considered, based on the application provided by The Free Reformed Church of Busselton that 108 Hawker Approach, Yalyalup, is eligible for rate exemption due to it being used as a place of residence for the minister of the church.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Given that an initial rate exemption enquiry was made in September 2019, it is considered that rate exemption on 108 Hawker Approach, Yalyalup should be effective from the 1 July 2019. Following Council’s resolution, this will be undertaken by 31 May 2020.


Council

57

24 June 2020

12.3

Attachment a

Letter Requesting Rates Exemption - Free Reformed Church Busselton

 


Council

61

24 June 2020

12.3

Attachment b

Rate Exemption Application Form

 


 

 


 


 


 


Council

62

24 June 2020

12.3

Attachment c

Rate Exemption Application - Statutory Declaration

 


Council

67

24 June 2020

12.3

Attachment d

Constitution - Free Reformed Church

 


 


 


 


 


Council

68

24 June 2020

12.3

Attachment e

Free Reformed Church Busselton Incorporated Association Extract

 


Council

69

24 June 2020

12.3

Attachment f

2018-2019 Audit Letter

 


Council

70

24 June 2020

12.3

Attachment g

108 Hawker - Site Plan

 

 

 


 


Council                                                                                      85                                                                      24 June 2020

13.             Planning and Development Services Report

13.1           APPLICATION FOR DEVELOPMENT APPROVAL (DA18/0542) - PROPOSED SINGLE HOUSE AND FIVE CHALETS - LOT 40 (61) CAUDALIE WAY, QUINDALUP

STRATEGIC GOAL

3. ENVIRONMENT Valued, conserved and enjoyed

STRATEGIC OBJECTIVE

3.1 Development is managed sustainably and our environment valued.

SUBJECT INDEX

Development/Planning Applications

BUSINESS UNIT

Statutory Planning

REPORTING OFFICER

Senior Development Planner – Policy - Stephanie Navarro

AUTHORISING OFFICER

Director, Planning and Development Services - Paul Needham

NATURE OF DECISION

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

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Location Plan

Attachment b    Aerial and site photos

Attachment c    Development Plans

Attachment d   Development Guide Plan

Attachment e    South Biddle Structure Plan

Attachment f    Commonage Consolidated Structure Plan

Attachment g   Assessment of Vegetation within proposed Asset Protection Zones

Attachment h   Department of Biodiversity, Conservation and Attractions submission

Attachment i     Bushfire Management Plan

Attachment j     Peer Review

Attachment k    Officer assessment against bushfire planning framework

Attachment l    Department of Fire and Emergency Services submissions

Attachment m  Summary of submitters and map of submitters  

 

OFFICER RECOMMENDATION

That the Council determines:

A.         That application DA18/0542 submitted for the development of a Single House and five Chalets at Lot 40 (61) Caudalie Way, Quindalup, is considered by the Council to be generally consistent with the City of Busselton Local Planning Scheme No. 21 and the objectives of the zone within which it is located.

 

B.         That Development Approval is granted for the proposal referred to in (A) above subject to the following conditions:

 

General Conditions

 

1.         The development hereby approved shall be substantially commenced within two years of the date of this decision notice, if not substantially commenced within this period, the approval will lapse and be of no further effect.

 

2.         The development hereby approved shall be undertaken in accordance with the Approved Development Plans (enclosed), including any notes placed thereon in red by the City and except as may be modified by the following conditions.

 

Prior to Commencement of Development Conditions:

 

3.         The development hereby approved shall not commence until the following plans or details have been submitted to the City and have been approved in writing:

 

3.1       Notification in the form of a section 70A notification, pursuant to the Transfer of Lands Act 1893 (as amended) is to be placed on the Certificates of Title advising the following:

 

This land is within a bushfire prone area as designated by an Order made by the Fire and Emergency Services Commissioner. The approval of the Single House and Chalets is conditional upon the details contained within the Bushfire Management Plan (BMP) prepared by Ecosystem Solutions (Revision I dated 22 May 2020), and the accompanying Bushfire Emergency Evacuation Plan, including any modifications to this BMP and/or future BMPs that are approved by the City in writing.

 

The Single House and Chalets shall be constructed, and their associated Asset Protection Zones maintained, such that they provide resistance to a radiant heat flux of 40 kW/m2 (BAL-40).

 

No person shall occupy any Chalet for more than a total of three months in any 12 month period.

 

A copy of the Certificate of Title with the section 70A notification registered against it, or Landgate lodgement receipt, is to be provided to the City.

 

3.2       A schedule of the final materials, finishes and colours of the Chalets, Single House and water tanks. The schedule shall include details of the type of materials proposed to be used, including their colour and texture. The External Surfaces of the approved development shall comprise Prescribed Materials as defined in clause 5.4.4 of the City of Busselton Local Planning Scheme No.21.

 

3.3       A Waste Management Plan. The plan shall include specifications of the methods, facilities and management measures to be put in place for the storage, collection and disposal of waste and rubbish generated by the development.

 

3.4       Details setting out how a minimum number of seven car parking bays, one per Chalet and two for the Single House shall be provided on site. The parking areas, driveways and points of ingress and egress [including crossovers] shall be designed, constructed and drained and shall comply with the Acceptable Solutions of Guidelines for Planning in Bushfire Prone Areas (where applicable).

 

3.5       Details of on-site effluent works.

 

3.6       Details of stormwater and surface water drainage works.

 

3.7       Details of the means and method of providing a potable water supply of 135,000 litres or equivalent alternative water supply, as otherwise approved in writing by the City, for the Single House.

 

3.8       Details of the means and method of providing a potable water supply of 80,000 litres or equivalent alternative water supply, as otherwise approved in writing by the City, for each Chalet.

 

3.9       A Landscape Plan which shall include:

 

a.         Screening vegetation between Chalets 1, 2 and 3 and the Caudalie Way road reserve; and

b.        Screening vegetation between Chalets 4 and 5 and the Single House and the southern lot boundary.

 

Landscaping shall incorporate species from the City of Busselton Engineering and Works Services Standards and Specifications Section 9 (e) Landscape Plant Species and shall not compromise the development’s compliance with the Bushfire Management Plan prepared by Ecosystems Solutions (Revision I dated 22 May 2020).

 

4.         The development of any Chalet hereby approved shall not commence until the following contributions have been paid to the City:

 

4.1       A contribution towards road network upgrading in the Rural Remainder precinct of $548.61 per Chalet.

 

4.2       A contribution of towards community facilities in the Rural Remainder precinct of $813.00 per Chalet.

 

Prior to Occupation/Use of the Development Conditions:

 

5.         The development hereby approved shall not be occupied, or used, until all plans, details or works required by Conditions 3 and 4 have been implemented and the following conditions have been complied with:

 

5.1       A revised Bushfire Attack Level (BAL) Certificate has been submitted to and approved by the City.

 

5.2       Information is to be provided to demonstrate that the measures which are required to be met before occupation as contained in the Bushfire Management Plan prepared by Ecosystem Solutions (Revision I dated 22 May 2020) have been implemented, including but not limited to the following:

 

a.         The Emergency Access Way between Broyage Retreat and Kinross Loop being upgraded, at the proponent’s expense, in accordance with the Bushfire Management Plan prepared by Ecosystem Solutions (Revision I dated 22 May 2020) including the details contained within Appendix 4 – Emergency Access Way Upgrade Requirements.

 

Ongoing Conditions:

 

6.         The works undertaken to satisfy Conditions 3, 4 and 5 shall be subsequently maintained for the life of the development and the following conditions shall be complied with:

6.1       The approved Bushfire Management Plan prepared by Ecosystem Solutions (Revision I dated 22 May 2020) shall be implemented and maintained.

 

6.2       Landscaping shall be maintained in accordance with the approved Landscape Plan to the satisfaction of the City. Unless otherwise first agreed in writing, any trees or plants which, within a period of five years from first planting, are removed, die or are assessed by the City as being seriously damaged, shall be replaced within the next available planting season with others of the same species, size and number as originally approved.

 

6.3       The Chalets hereby approved are to be made available for temporary accommodation purposes only and shall not be occupied by any one person or family or group of persons (two persons or more) for a period exceeding 3 months (consecutively or intermittently) within any 12 month period.

 

6.4      An occupant of the Single House must be responsible for the management of the Chalets including the implementation of the Bushfire Emergency Evacuation Plan in the case of a bushfire emergency.

 

EXECUTIVE SUMMARY

The City has received a development application for a Single House and five Chalets at Lot 40 (61) Caudalie Way, Quindalup.

 

Due to the nature of the issues requiring consideration and the level of community interest, the application is being presented to the Council for determination, rather than being determined by City officers acting under delegated authority.

 

Having considered the application, including submissions received in response to the advertising of the proposal, City officers consider that the application is consistent with the City of Busselton Local Planning Scheme No. 21 and relevant planning framework, and therefore it is recommended that the application be approved, subject to appropriate conditions.

 

BACKGROUND

The Council is asked to consider a development application seeking approval for a Single House and five Chalets at Lot 40 (61) Caudalie Way, Quindalup (‘Site’). The application was originally submitted in July 2018. The City was unable to support the application at the time due to its non-compliance with the Acceptable Solutions of the Guidelines for Planning in Bushfire Prone Areas (‘Guidelines’). The application was, however, placed on hold awaiting the expected release of the Western Australian Planning Commission Position Statement: Tourism Land Uses in Bushfire Prone Areas (‘Position Statement’).

 

The Position Statement, which was released in October 2019, enables local governments to consider tourism land uses, including Short-term Accommodation such as Chalets, where they do not comply with the Acceptable Solutions of the Guidelines, subject to certain criteria being met. The applicant has subsequently submitted a Bushfire Management Plan (BMP), including a Bushfire Emergency Evacuation Plan (BEEP) and risk assessment, in support of the proposal that addresses these areas of non-compliance and includes assessment against the Position Statement. 

 


 

 Key information regarding the application is set out below:

 

1.         Landowner/s: Amy Karin Molloy & Shannon Thomas Leslie O'Donohue.

 

2.         Applicant: Tim Koroveshi.

 

3.         Site area: 5.0115 Ha.

 

4.         General description of site: The Site is long and narrow and is orientated in an east-west direction with much of the Site being heavily vegetated. The Site is bound by a reserve (Lot 8002) to the north and east, Caudalie Way to the north-west and south west, and a number of rural residential properties to the south. A location plan, site aerial and site photos are provided at Attachments A and B respectively.

 

5.         Current development/use: The Site is vegetated but currently otherwise vacant with the exception of an existing outbuilding and dam.

 

6.         Brief description of proposed development: Three of the Chalets are proposed to be located in the north-western portion of the Site adjacent Caudalie Way. The remaining two Chalets and Single House are proposed to be located along the southern lot boundary. The Chalets and Single House are proposed to have their own water tank located along side. A copy of the proposed Development Plans is provided at Attachment C.

 

7.         Applicable Zoning and Special Control Area designations: The site is zoned ‘Rural Residential’ and is within a Landscape Value Special Control Area under the Scheme. In addition, Additional Use 62 (A62) under Schedule 2 – Additional Uses of the Scheme is applicable to the Site and is set out below:

 

No.

PARTICULARS OF LAND

LAND USE PERMITTED/SPECIFIED

CONDITIONS

 

A62

Lot 40 Caudalie Way,

Quindalup

 

Chalet

1.    The additional use specified shall be deemed to be a “D” use for the purpose of Part 4 of the Scheme.

2.    Subdivision and development of the land shall be in accordance with a Structure Plan adopted by the local government and endorsed by the Western Australian Planning Commission pursuant to Part 4 of the Deemed Provisions.

3.    Not more than seven (7) ‘single keyed’ two bedroom Chalets, three (3) guest rooms and one (1) manager’s residence comprising a maximum of two bedrooms shall be permitted on the land.

Further information regarding the introduction of these Additional Use rights into the Scheme is provided within the Statutory Environment section of this report below. 

 

8.         Land-use permissibility: A Single House in the ‘Rural Residential’ zone is a permitted (“P”) land use. In accordance with A62, the Chalets are a discretionary land use. In accordance with clause 3.3 – Zoning Table of the Scheme, discretionary land uses are not permitted unless the local government has exercised its discretion by granting development approval.

 

The following attachments are provided:

·        Attachment A – Location Plan;

·        Attachment B – Site aerial and site photos;

·        Attachment C – Development Plans;

·        Attachment D – Development Guide Plan;

·        Attachment E - Biddle Road Structure Plan;

·        Attachment F - Commonage Consolidated Structure Plan;

·        Attachment G - Assessment of Vegetation within proposed Asset Protection Zones;

·        Attachment H – Department of Biodiversity, Conservation and Attractions submissions;

·        Attachment I – Bushfire Management Plan , including Bushfire Emergency Evacuation Plan and risk assessment;

·        Attachment J – Peer review of risk assessment;

·        Attachment K – Officer assessment against bushfire planning framework;

·        Attachment L - Department of Fire and Emergency Services submissions; and

·        Attachment M – Summary of Submissions and Map of Submitters.

 

OFFICER COMMENT

Following an assessment of the application, including consideration of the submissions received during consultation, the key issues outlined below are considered to be relevant to the determination of this application and are explored in the report further below:

·        Amenity;

·        Environment; and

·        Bushfire.

It is considered that all other aspects of the proposal that are not discussed further below satisfy the relevant planning framework. There are some other issues identified in submissions that are not considered significant issues, which are briefly outlined and discussed in the Schedule of Submissions.

 

Amenity

A key concern that was raised in submissions received during advertising of the application was the suitability of the development in this location including concerns that the nature of the development, being for short stay accommodation, could potentially detract from the rural residential character of the area. In addition, concerns were raised regarding the impact of the development on the amenity of the area, including visual and noise impacts. 

 

The proposed development, including the density of the Chalets and proximity of the development to surrounding lots, is consistent with the planning framework for the Site. The Site has been designated for tourism development since the initiation of the Biddle Road Structure Plan in 1998. This is also reflected in the Commonage Consolidated Structure Plan which was subsequently endorsed in 2004. It is noted that if the Site had been developed at the time of subdivision to the same lot sizes as the rural residential lots to the south of the Site, around ten lots could have been accommodated. Dwellings on these lots could, then, have conceivably been approved to be used as holiday homes.

 

In 2007, Amendment 79 to introduce additional land use rights (A62) to the Site was gazetted. A62 allows for the consideration of up to “seven ‘single keyed’ two bedroom Chalets, three guest rooms and one manager’s residence comprising a maximum of two bedrooms” on the Site. Amendment 79 was supported by a Development Guide Plan (DGP) that indicated the seven Chalets were to be located along the southern lot boundary and the guesthouse/manager’s residences to be located in the north-western corner of the Site.

 

The scale of the proposed development now proposed five rather than seven Chalets. The current development proposes three Chalets on the north-western portion of the site where the guesthouse/manager’s residence was originally indicated on the DGP. The remaining two Chalets and Single House are proposed to be located along the southern lot boundary. Note that it is arguable that a separate ‘manager’s residence’ could have been proposed, in addition to the Single House. As such, up to three additional ‘dwellings’ could have been proposed in total. The relocation of the Single House further into the Site is considered desirable as it will improve efficiency in the case of an evacuation in a bushfire emergency and will better enable the manager to implement the BEEP including checking the Chalets as they leave the property.

 

Further discussion regarding Amendment 79, and associated DGP, is provided within the Statutory Environment section of this report below. A copy of the DGP, Biddle Road Structure Plan and Commonage Consolidated Structure Plan are provided at Attachments D, E and F respectively.

 

In summary, it is considered that the relevant planning framework very clearly identifies the Site as one where short stay accommodation of the nature and scale proposed can occur.  In substantial part for that reason, refusing or requiring modification of the proposal because of amenity concerns is not something which could be supported. Notwithstanding that, there are some particular aspects of the proposal that reduce the potential amenity impact and these are outlined below (but, it should be noted that even if some aspects of the development were not as described below, it would not necessarily mean that the potential amenity impact would be such that refusal or modification could be supported).

 

In regards to the visual impact of the proposed development from Caudalie Way, the Chalets are proposed to be two storey in form, with a mezzanine upper level, and a skillion roof design. The Chalets are to be oriented so that the lower wall (at 4.8 metres) would face Caudalie Way. The apex of the skillion, orientated away from Caudalie Way, has a maximum height of 5.6 metres. Because the site slopes down from Caudalie Way, there is a level difference between the road and proposed floor levels of Chalets 1 – 3 of approximately 4 metres. This level difference reduces the visibility of the buildings when viewed from Caudalie Way. With the addition of landscaping, the development would be further softened from the street. Furthermore, the original DGP for the Site indicates the guesthouse/manager’s residence in this location. It is considered that a guesthouse/manager’s residence would have had a greater visual impact as viewed from Caudalie Way than the proposed Chalets, as it would likely have been a larger structure.

 


 

In relation to the visual impact of the development on the adjoining Rural Residential zoned properties to the south, it is noted that the proposed floor levels of the Chalets and Single House are approximately 5 to 7 metres lower than the ground level of the houses on the adjoining properties. The southern lot boundary is considered to be a side boundary and therefore a 15 metre setback is prescribed under the Scheme. Chalets 4 and 5 comply with the required setbacks of the Scheme with a proposed setback of 23 metres. The Single House proposes a 12.5 metre setback, however, this setback is considered to be acceptable as it is a relatively minor discretion in the context and facilitates the retention of vegetation to the north of the Single House. The applicant has submitted cross-sections which indicates these level differences (provided as part of the Development Plans at Attachment C). Taking into consideration the setbacks, level differences, future landscaping as well as the relatively small size of the Chalets, it is considered that the development is appropriate in the context of the site and will not have an unacceptable adverse impact on the amenity of the area.

 

In response to concerns raised in submissions regarding potential noise from patrons of the Chalets, it is noted that noise generated by people talking is not controlled under the Environmental Protection (Noise) Regulations 1997 (‘Noise Regulations’). However, if amplified music is played by patrons of the Chalets or residents of the Single House, it will be required to comply with the Noise Regulations. It is considered that the presence of a manager on site will assist with the supervision and control of guest behaviour.

 

Environment

The proposed development has been designed to reduce the remnant vegetation that would need to be removed to accommodate the development and associated Asset Protection Zones (APZ). The applicant engaged a consultant to undertake an assessment of the vegetation that is intended to be cleared. That report was referred to the Department of Biodiversity, Conservation and Attractions (DBCA) which has advised that it is satisfied with the proposal. City officers agree that the design and location of the development enables the retention of vegetation while achieving compliance with the bushfire requirements.

 

A copy of the Assessment of Vegetation within proposed Asset Protection Zones and comments from DBCA are provided at Attachment G and H respectively.

 

Bushfire

The proposed development has been assessed against the requirements of SPP3.7, the Position Statement and the Guidelines. At the time that the application was originally submitted in 2018, the application did not meet the Acceptable Solutions of the Guidelines, and therefore the application was put on hold awaiting the Position Statement.

 

The Position Statement, which was released in October 2019, provides an alternative pathway to enable the consideration of tourism land uses, including Short-term Accommodation such as Chalets, where they do not comply with an Acceptable Solution of the Guidelines. Note that the Position Statement is a higher order document than the Guidelines.

 

The applicant subsequently submitted a revised BMP, including a BEEP and risk assessment, in accordance with the Position Statement. This final version of the BMP, including the BEEP and risk assessment, were referred to Department of Fire and Emergency Services (DFES) for comment in accordance with the requirements of the Guidelines. As part of the referral response, DFES have advised that they do not support the proposal as it is not in accordance with the Acceptable Solutions of the Guidelines. The City has previously received general advice from DFES that they will not support any proposal that does not meet the Guidelines, even if it is supported by the Position Statement. It is understood from discussions with DFES and DPLH that this is an organisational position of DFES, However, as DFES are not the ‘decision makers’, their advice only requires due regard.

 

City officers are satisfied that the proposal meets the requirements of the Position Statement as demonstrated within the BMP and supporting risk assessment. City officers, therefore, consider that the proposal can be supported by the City in accordance with the Position Statement. All bushfire documentation submitted in support of the proposal has been prepared by Level 3 bushfire planning practitioners. In addition, the risk assessment prepared in support of the development application has been independently peer reviewed by another Level 3 bushfire planning practitioner. City officers consider that the preparation and review of this documentation by suitably qualified professionals demonstrating compliance with the requirements of the Position Statement is sufficient for the application to be supported despite the lack of support from DFES.

 

Further discussion regarding the bushfire planning framework is provided at Attachment K and a copy of the BMP, including BEEP risk assessment are provided at Attachment I. A copy of the submission responses from DFES are provided at Attachment L.

 

Statutory Environment

The key statutory environment is set out in the City of Busselton Local Planning Scheme 21 (Scheme), the Planning and Development (Local Planning Schemes) Regulations 2015 (Regulations), Schedule 2 of which is the ‘deemed provisions’, which also functionally form part of the Scheme.  Key aspects of the Scheme and Regulations relevant to consideration of the application are set out below.

 

Matters to be Considered

Clause 67 of the deemed provisions within the Regulations sets out ‘matters to be considered’ by a local government in considering an application for development approval. The following matters are considered to be relevant to consideration of this application:

(c)       any approved State planning policy;

(d)       any environmental protection policy approved under the Environmental Protection Act 1986 section 31(d);

(g)       any local planning policy for the Scheme area;

(m)     the compatibility of the development with its setting including the relationship of the development to development on adjoining land or on other land in the locality including, but not limited to, the likely effect of the height, bulk, scale, orientation and appearance of the development;

(n)       the amenity of the locality including the following —

             (i)   environmental impacts of the development;

             (ii)   the character of the locality;

             (iii) social impacts of the development;

(o)       the likely effect of the development on the natural environment or water resources and any means that are proposed to protect or to mitigate impacts on the natural environment or the water resource;            

(p)       whether adequate provision has been made for the landscaping of the land to which the application relates and whether any trees or other vegetation on the land should be preserved;

(q)       the suitability of the land for the development taking into account the possible risk of flooding, tidal inundation, subsidence, landslip, bush fire, soil erosion, land degradation or any other risk;

(s)       the adequacy of —

(i)  the proposed means of access to and egress from the site; and

(ii) arrangements for the loading, unloading, manoeuvring and parking of vehicles;

(t)        the amount of traffic likely to be generated by the development, particularly in relation to the capacity of the road system in the locality and the probable effect on traffic flow and safety;

(x)       the impact of the development on the community as a whole notwithstanding the impact of the development on particular individuals;

(y)       any submissions received on the application;…

 

Zoning

The site is zoned ‘Rural Residential’ under the Scheme. The relevant Objectives of the ‘Rural Residential’ zone are as follows:

 

b.         To provide opportunities for a range of limited rural and related ancillary pursuits on rural-residential lots where those activities will be consistent with the amenity of the locality and the conservation and landscape attributes of the land.

 

c.         To set aside areas for the retention of vegetation and landform or other features which distinguish the land.

 

Clause 4.38 - Special Provisions relating to the Rural Residential zone

As the Site is zoned Rural Residential the provisions of clause 4.38 of the Scheme apply. The development is generally consistent with the requirements of clause 4.38 with the exception of some of the setbacks to the southern lot boundary, road reserve and creek line which is discussed further below. 

 

The required setbacks under the Scheme for any development in the Rural Residential zone are 20 metres to any road and/or a front or rear boundary, 15 metres to a side boundary and 30 metres from the centre line of any creek. In this instance the proposed setbacks of the proposed development are as follows:

 

·        Chalet 1 – 13 metres to Caudalie Way and 19 metres from the eastern boundary;

·        Chalet 2 – 31.5 metres to Caudalie Way and 19 metres from the eastern boundary;

·        Chalet 3 – 23.5 metres to Caudalie Way and 19 metres from the creek line;

·        Chalet 4 – 23 metres to southern lot boundary and 14 metres from creek line;

·        Chalet 5 – 23 metres to southern lot boundary and 39 metres from the northern lot boundary;

·        Single House – 12.5 metres to southern lot boundary and 25 from the northern lot boundary.

Further discussion regarding the location of the development, including the visual impact of the development form the Caudalie Way road reserve and southern lot boundaries, is provided in the Officer Comment section of this report above.

 

In relation to the setbacks of development to the creek line, City officers considered that the proposed setbacks to the creek line are acceptable and are consistent with the original DGP. The vegetation on the Site, including riparian vegetation along the creek line, is already relatively degraded and lacks the composition and integrity of different vegetation layers due to stock grazing on the Site prior to the development of the area. The Chalets have been located to ensure that minimal amount of vegetation is required to be cleared and such that no riparian vegetation will need to be removed to accommodate the development or associated APZs.

It is noted that if any clearing of riparian vegetation is required the applicant will be required to obtain a clearing permit from Department of Water, Environment and Regulations, which is a separate process to the development application. In regards to the required separation distance of effluent disposal systems to the creek line, details of effluent disposal systems, including the type and location, are required to be provided to the City prior to the commencement of development. At this time any potential impacts in relation to contaminants from the septics into the watercourse will be assessed with supplementary treatment required if deemed necessary.

 

Clause 5.4 – Landscape Value Area

The site is located within the Landscape Value Special Control Area under the Scheme and therefore is subject to the following provisions of the Scheme:

 

5.4.1 The local government shall not grant development approval for the clearing or development of any land identified within a Landscape Value area on the Scheme map, unless it has considered –

 

(a)       whether the development will be compatible with the maintenance and enhancement, as far as is practicable, of the existing rural and scenic character of the locality;

(b)      whether the development will materially affect any wildlife refuge, significant wetland, coastal environment or any identified site containing Aboriginal archaeological relics; and

 

(c)       disturbance to the natural environment, including -

 

(i)        visual effects of clearing for development;

 

(ii)       maintenance of rural character; and

 

(iii)      habitat disturbance.

 

5.4.2  The local government shall not grant development approval for the carrying out of development on land within the Landscape Value area or on land on or near any ridgelines where, in the opinion of the local government, that development is likely to substantially detract from the visual amenity of the area, having regard to, among other things, the cumulative visual effect of the development related to other development that may be anticipated in the locality and in the area generally.

 

5.4.3  Before granting development approval for the erection of a building on land within the Landscape Value area, the local government shall make an assessment as to whether it should impose conditions relating to –

 

(a)      the siting of the proposed building;

 

(b)      the use of prescribed materials on the external surfaces of the building; and

 

(c)       the number, type and location of existing trees and shrubs which are to be retained and the extent of landscaping to be carried out on the site.

 

5.4.4 In clause 5.4.3 –

 

"external surfaces" means the external walls and cladding (if any), external doors, external door and window frames, columns, roofs, fences and any surface of a building or work visible from the exterior of a building or work; and

 

"prescribed materials" means materials with dark tones or dark colouring and of low reflective quality or materials which are painted or similarly treated with dark toned or dark coloured paint or pigment of low reflective quality.

 

Details of ‘external surfaces’ will be required to be provided prior to the commencement of development if an approval is granted. These ‘external surfaces’ will be required to comply with the ‘prescribed materials’ as outlined in clause 5.4 of the Scheme.

 

Clause 3.7 Additional Uses of the Scheme and A62

Clause 3.7 Additional Uses of the Scheme states as follows:

 

Notwithstanding anything contained in the Zoning Table, the land specified in Schedule 2 may be used for the specific use or uses that are listed in addition to any uses permissible in the zone in which land is situated subject to the conditions set out in Schedule 2 with respect to that land.

 

In 2004, the City initiated a Scheme Amendment (Amendment 79) to then Town Planning Scheme No. 20 and an associated Development Guide Plan (DGP). Amendment 79 proposed to introduce additional land use rights to the Site including nine Chalets, a three-bedroom guesthouse and manager’s residence. Amendment 79 was revised to a maximum of seven Chalets which were shown on the associated DGP along the southern lot boundary of the site with the guesthouse and manager’s residence to be located in the north-western portion of the lot. To support Amendment 79 a number of documents including traffic impact assessment and environmental assessment where submitted by the Applicant. Amendment 79 was gazetted on 16 March 2007.

 

An excerpt of A62 is provided in the report above and a copy of the approved DGP is provided at Attachment D.

Relevant Plans and Policies

The policies affecting this proposal include:

·        State Planning Policy 3.7 : Planning in Bushfire Prone Areas and associated Guidelines (SPP3.7)

·        Leeuwin Naturaliste Sub-regional Strategy (LNSRS) and associated State Planning Policy 6.1: Leeuwin-Naturaliste Ridge (SPP6.1)

·        City of Busselton Local Planning Policy: Rural Tourist Accommodation

 

SPP3.7

SPP3.7 guides how development should address bushfire risk management in Western Australia. It applies to all land that has been designated as ‘bushfire prone’ by the Fire and Emergency Services Commissioner as highlighted on the Map of Bush Fire Prone Areas. The accompanying Guidelines provide supporting information to assist in the interpretation of the objectives and policy measures outlined in SPP3.7, providing advice on how bushfire risk is to be addressed when planning, designing or assessing a planning proposal within a designated bushfire prone area.

 

Under the SPP3.7 and the Guidelines the Chalets are considered to be ‘Vulnerable Land Use’ and as such a BMP and BEEP were required to be submitted as part of the development application. In addition, SPP3.7 requires that development applications for ‘Vulnerable Land Use’ in ‘bushfire prone’ areas be referred to the DFES for comment.

 

Discussion regarding the proposals compliance with these requirements are provided in the Officer Comment section of this report.

LNSRS and SPP6.1

The LNSRS is an overarching planning document that guides the future planning and development of all the land within the local government areas of the Shire of Augusta-Margaret River and the City of Busselton. The Leeuwin-Naturaliste Sub-regional Strategy was released on May 2019 with the following vision for the Leeuwin-Naturaliste sub-region:

 

The Leeuwin-Naturaliste sub-region to continue to develop and be managed in a manner consistent with the character, amenity and value of the natural and built environments, and the efficient use and equitable distribution of resources.

 

The Site is designated as ‘Rural Landscape Significance’ under Figure 3 – Landscape Classes Map and Rural Residential under Figure 5 – Land Use Strategy Plan of SPP6.1. The relevant and applicable policy of this landscape class (PS) and policy of this land use strategy (LUS) are as follows:

 

PS 3.6 In areas of Rural Landscape Significance, as identified in Figure 3, development or change of use should protect the rural character of the land.

 

LUS 1.25 Subdivision and development design that facilitates better use of land already committed for Rural Residential development will be encouraged. Assessment of proposals will address the following criteria—

·        provision for clustered settlement;

·        provision of community-based activities and services;

·        provision for walking, cycling and possible future public transport;

·        opportunities for local enterprise development such as limited small-scale tourism development, including accommodation, attractions and cottage industries; and

·        suitability for small-scale intensive agriculture.

 

It is considered that the proposed development is consistent with and meets the above mentioned policies of SPP6.1.

 

City of Busselton Local Planning Policy - Rural Tourist Accommodation

Local Planning Policy - Rural Tourist Accommodation (LPP) provides assessment criteria for different types of tourist accommodation in rural areas, including Rural, Viticulture and Tourism, Rural Landscape, Conservation and Rural Residential zones, throughout the City. As ‘Chalets’ are a prohibited (“X”) land use in the Rural Residential zones generally the provisions applicable to Chalets within this LPP are not applied within the Rural Residential zone however have been given consideration, where applicable, in the assessment of this development application.

 

It is noted that the density and minimum lot size provisions of this LPP have not been considered and are not applicable on the basis of that the site has additional land use rights for seven Chalets under A62.  The setback requirements are also not considered applicable on the basis that the DGP indicates the Chalets with a similar setback to that which is proposed as part of this application.

 

Under the LPP, a potable water supply of 80,000 litres per annum per Chalet to be provided which has been enforced via a condition of development approval.

 

South Biddle Road Structure Plan

The South Biddle Road Structure Plan was first initiated by the Council on 5 August 1998 (C988/0276 refers). The original structure plan and supporting documentation indicated the Site as a “unique tourist site” and included a café/restaurant, lodge and 16 Chalets on the Site. As part of the report to the Council to initiate the Structure Plan, City officers indicated that while 16 Chalets was considered excessive, little information on the development had been provided and that matters regarding the scale of the development should be addressed in a future scheme amendment to re-zone the property prior to development for these uses.

Modifications to the South Biddle Road Structure Plan were endorsed in 2002. As part of these modifications to the South Biddle Road Structure Plan a notation regarding the Site being suitable for café, restaurant, lodge and Chalets would be subject to a separate future re-zoning was included. In addition, a notation was placed on the Site which states as follows:

 

Tourist Development of proposed Lot 40 will be of a nature that generates no greater vehicular traffic than that commonly associated with rural residential or low intensity tourist development (i.e. A maximum of 50 vehicle movements per day).

 

Commonage Consolidated Structure Plan (CCSP)

The CCSP covers the entire Commonage Rural Residential area and was endorsed in 2004 subsequent to the South Biddle Road Structure Plan. The Site is indicated in the CCSP as a “proposed Tourist Development” with a “tree planting area/revegetation buffer/habitat corridor/non-development area” running along the southern and eastern portion of the site. The CCSP also has a number of development requirements which include setbacks to lot boundaries, setbacks to streams, building materials, building heights and retention of vegetation that apply to all development subject to the CCSP.

 

The provisions of the CCSP are generally consistent with the requirements of the Scheme as discussed further above. 

Financial Implications

There are no financial implications associated with the Officer Recommendation.

 

Stakeholder Consultation

Clause 64 of the deemed provisions sets out circumstances in which an application for development approval must be advertised, and also sets out the means by which applications may be advertised. As the development proposes a permitted (Single House) and a discretionary (Chalets) land uses the development was not required to be advertised, however, the City chose to advertise the application due to the nature of the development.

 

The application was referred via letter to four neighbouring landowners from 9 August 2018 to 30 August 2018. A total of 29 submissions, all objecting to the proposed development, were received from surrounding landowners.

 

The key concerns raised from the submissions are summarised below:

·        Suitability of development and potential detrimental impact on the rural residential character of the area; and

·        Potential impact of the development on the amenity of the area, including visual, noise and anti-social behaviour; and

·        Amount of vegetation required to be removed to accommodate the development; and

·        Additional traffic generated by the development; and

·        Increase to bushfire risk and places additional people at risk in a bushfire event.

The purpose of public consultation is to provide an opportunity for issues associated with a proposed development to be identified by those who potentially may be affected.  A development application should not be approved or refused based on the number of submissions it receives, for or against, rather all applications must be determined on the merits of the particular proposal, including consideration of any relevant planning issues raised through consultation.  

 

A schedule of submissions and a map indicating the location of submitters is provided at Attachment M. The schedule identifies who submissions were received from and summarises the submissions and the map identifies the location of the submitters in relation to the Site.

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 key risks associated with the development are considered to be reputational and potential professional indemnity (financial) risk to the City, principally related to the bushfire planning considerations.  Officers are satisfied that a robust assessment of the proposed development has been undertaken and that should an approval be issued, and a bushfire later affect the lot, impacting either built form or life, the decision would be deemed reasonable limiting any reputational and professional indemnity risk to an acceptable level.

 

Options

As an alternative to the proposed recommendation the Council could:

 

1.         Refuse the proposal, setting out reasons relating to traffic, noise, visual amenity, rural-residential amenity, environmental concerns and bushfire risk; or

 

2.         Refuse the proposal, setting out reasons relating to the bushfire risk; or

 

3.         Apply additional or different conditions.

 

Officers do not support Option 1 as it is considered unlikely a sound argument could be mounted, should there be a review by the State Administrative Tribunal, for refusing the application on the majority of these grounds. 

 

While Option 2 has not been recommended, it is noted that officers seriously considered whether this would be an appropriate recommendation to Council given the complexity of the bushfire considerations for this site and the conflict created in the State bushfire planning framework, being that the co-endorsement of DFES for a BMP & BEEP would generally be required, but DFES have indicated that they will not endorse any development application which uses the Position Statement to justify non-compliance with SPP3.7 or the Guidelines.  On balance however, and given that State Planning Policy should not be applied inflexibly, it was considered more appropriate in this instance to support the proposal and recommend approval. It is perhaps worth reiterating that the proposal has been through a very extensive process to assess bushfire risk issues, including review by City officers with a significant background and experience in the area, as well as the input of two Level 3  ‘BPAD’ assessors (the highest level of accreditation available).

 

CONCLUSION

Subject to the inclusion of relevant conditions, the proposal is considered appropriate to support and it is accordingly recommended for approval.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The applicant and those who made a submission will be advised of the Council decision within two weeks of the Council meeting.

 


Council

86

24 June 2020

13.1

Attachment a

Location Plan

 


Council

89

24 June 2020

13.1

Attachment b

Aerial and site photos

 


 


 


Council

93

24 June 2020

13.1

Attachment c

Development Plans

 


 


 


 



 


 


 


 


 



 


 


Council

103

24 June 2020

13.1

Attachment d

Development Guide Plan

 


Council

104

24 June 2020

13.1

Attachment e

South Biddle Structure Plan

 


Council

105

24 June 2020

13.1

Attachment f

Commonage Consolidated Structure Plan

 


Council

112

24 June 2020

13.1

Attachment g

Assessment of Vegetation within proposed Asset Protection Zones

 


 


 


 


 


 


 




Council

120

24 June 2020

13.1

Attachment h

Department of Biodiversity, Conservation and Attractions submission

 


 


 


 


 


 


Council

133

24 June 2020

13.1

Attachment i

Bushfire Management Plan

 


 


 


 


 


 


 


 


 


 


 


 


 



 



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




 


 


 


 


 


 


 


 



 



 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 




 


 


 


 


Council

211

24 June 2020

13.1

Attachment j

Peer Review

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Council

214

24 June 2020

13.1

Attachment k

Officer assessment against bushfire planning framework

 


 


 



Council

226

24 June 2020

13.1

Attachment l

Department of Fire and Emergency Services submissions

 


 


 


 


 


 


 


 


 


 


 


Council

236

24 June 2020

13.1

Attachment m

Summary of submitters and map of submitters

 


 


 


 


 


 


 


 


 


 

 


Council                                                                                      238                                                                    24 June 2020

14.             Engineering and Work Services Report

Nil


 

15.             Community and Commercial Services Report

Nil


Council                                                                                      249                                                                    24 June 2020

16.             Finance and Corporate Services Report

16.1           HOTEL DEVELOPMENT AND LEASING ARRANGEMENTS - HOTEL SITE 2, BUSSELTON FORESHORE

STRATEGIC GOAL

4. ECONOMY Diverse, resilient, prosperous

STRATEGIC OBJECTIVE

4.1 An innovative and diversified economy that provides a variety of business and employment opportunities as well as consumer choice.

SUBJECT INDEX

Busselton foreshore redevelopment

BUSINESS UNIT

Corporate Services

REPORTING OFFICER

Legal Services Coordinator - Cobus Botha

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   Plan Hotel Site 2

Attachment b    Busselton Foreshore Structure Plan  

 

OFFICER RECOMMENDATION

That the Council:

 

1.    Notes that, in accordance with Section 3.59 of the Local Government Act 1995 (WA):

a.    The City of Busselton prepared a business plan in relation to a proposed sub-lease of a portion of Lot 503 Foreshore Parade, located within Reserve 38558 (Hotel Site 2) on the terms and conditions outlined in this report;

b.    Statewide notice, stating that the City proposes to enter into the Sublease, was given;

c.     A copy of the business plan was made available for public comment and submissions about the Sublease were invited; and

d.    No submissions have been received.

 

2.    Resolves to enter into a lease with the State of WA in relation to Hotel Site 2 (Head Lease) on the following terms and conditions:

a.    Term: Up to 65 years

b.    Rent: $1,000 + GST per year

c.     Permitted purpose: Hotel/Short stay accommodation

d.    Such further terms and conditions as agreed upon pursuant to resolution 4.

 

3.    Resolves to sublease, subject to the Minister for Planning, Lands and Heritage’s consent, Hotel Site 2 to Pacifica Ausglobal Busselton Pty Ltd ACN 637 353 710 (Sublessee) on the following terms and conditions (Sublease):

a.   Term: 35 Years with an option to extend for a further term of 30 years (at the Sublessee’s option)

b.  Rent: Year 1 - $100 + GST

Year 2 - $25,000 + GST

Year 3 - $50,000 + GST

Year 4 - $75,000 + GST

Year 5 - $105,000 + GST

Year 6 and onwards - Previous year’s rent annually reviewed and adjusted in accordance with CPI, with market rent reviews to be undertaken every 5 years

c.   Permitted purpose: Hotel/Short stay accommodation

d.  Such further terms and conditions as agreed upon pursuant to resolution 4.

4.    In respect to resolutions 2 and 3 delegate power and authority to the Chief Executive Officer to:

a.    Negotiate and agree with the State of WA the further terms and conditions of the Head Lease as outlined in this report;

b.    Negotiate and agree with the Sublessee the further terms and conditions of the Sublease as outlined in this report;

c.     Enter into the Head Lease and Sublease on behalf of the City; and

d.    Make from time to time such minor variations to the Head Lease and Sublease as may be necessary or appropriate for successfully delivering the proposed hotel project in accordance with this report.

 

EXECUTIVE SUMMARY

The purpose of this report is to seek formal Council approval to enter into the necessary agreements to facilitate development of a proposed 110-room 4 star Hilton Garden Inn branded hotel on Hotel Site 2 on the Busselton foreshore; and ratify the terms and conditions of a proposed head lease between the City and the State of WA and a sublease between the City and Pacifica Ausglobal Busselton Pty Ltd (Pacifica).

 

BACKGROUND

The Busselton foreshore is ideally located to take advantage of Busselton’s temperate climate and opportunities offered by the iconic Busselton Jetty and the exceptional scenery that overlooks Geographe Bay. Since 2009, Council has initiated public interest in and support for revitalising the Busselton foreshore. 

 

Following an extensive public consultation process, the Busselton Foreshore Master Plan (BFMP) was adopted by Council on 28 March 2012 (C1203/073).

 

The BFMP covers an area of approximately 38 hectares of combined commercial, cultural and public space on the Busselton foreshore, and aims at providing, among other things, a unique water’s edge visitor/tourist experience. The BFMP initially identified five potential sites for hotel/short stay accommodation, but following a commercial analysis (conducted by the City) and due to environmental requirements in relation to providing a “possum corridor” in this area, the number of hotel/short stay accommodation sites were reduced to three.

 

In 2013, following further extensive public consultation and engagement with key government agencies and existing commercial lessees in this area, Council and the Western Australian Planning Commission adopted the then Busselton Foreshore Development Guide Plan. There have been several minor revisions made to that plan subsequently, including re-adopting it as the Busselton Foreshore Structure Plan (Structure Plan) in 2016 (including the change in nomenclature which reflected the Planning and Development (Local Planning Schemes) Regulations 2015 introduced in 2015). The Structure Plan references town planning controls such as land use, building heights and floor areas and incorporates the 3 short stay accommodation sites referenced in the BFMP, one of these being “Hotel Site number 2” as shown stippled black on the plan at Attachment A (Hotel Site 2). 

 

Hotel Site 2

Hotel Site 2 currently forms part of Lot 503, located within Reserve 38558 on the Busselton foreshore.  Reserve 38558 is Crown land vested in the City for recreation and tourism. In line with the current policy of the Department of Planning Lands and Heritage, commercial leasing within Reserve 38558 requires excision of the area to be leased to create a separate lot. In accordance with these requirements, the City engaged a licensed surveyor to prepare a draft deposited plan for the purposes of excising Hotel Site 2 and creating a separate lot (proposed Lot 600, Foreshore Parade). This process will be finalised through Landgate once the formalities mentioned in this report have been addressed.

 

Similar to the tenure arrangements for the adjacent family restaurant/microbrewery development, Hotel Site 2 is intended to be the subject of a head lease granted by the State of WA to the City of Busselton, enabling the City to offer a sublease to the developer for the purposes of its proposed hotel project. Further detail about the proposed head lease is discussed in the Officer Comment section of this report.

 

Agreement to Sublease

Pacifica is implementing a strategy of developing upscale hotels in regional locations across Australia. The locations for development are selected on the basis of their existing economic activity base, potential for growth, distinct tourism potential, idiosyncratic locations and the existing accommodation stock. Pacifica have recently commenced construction of Hilton operated hotels in Karratha and Kalgoorlie (in partnership with the respective local governments).

 

Following an expression of interest process to recruit potential hotel developers and/or operators of short stay accommodation for the Busselton foreshore, Council resolved on 22 November 2017 (C1711/287) to:

 

·    Nominate Pacifica as preferred proponent for the development of Hotel Site 2; and

·    Authorise the CEO to negotiate and enter into a non-binding heads of agreement with Pacifica. 

 

In December 2017, the City and Pacifica entered into a non-binding heads of agreement which, among other things:

 

·    Allowed Pacifica to conduct a detailed due diligence investigation into developing a luxury hotel at Hotel Site 2; and

·    Committed the City and Pacifica to negotiate exclusively and in good faith a mutually acceptable commercial and legal structure for securing tenure and development terms for this project.

 

Pursuant to the heads of agreement Pacifica submitted in November 2018, a concept design was developed for a proposed 110-room 4 star Hilton Garden Inn branded hotel to be developed on Hotel Site 2 (Hotel Project). The Hotel Project was generally acceptable to the City and consequently the City and Pacifica negotiated and agreed to progress the Hotel Project on the following terms and conditions:

 

·    Granting of a long term sublease of Hotel Site 2 to provide Pacifica, providing security of tenure for delivering the Hotel Project;

·    Pacifica agreeing to develop the Hotel Project in accordance with a design and within a timeframe approved by Council; and

·    The proposed sublease and development of the Hotel Project being conditional upon:

 

The City procuring a head lease of Hotel Site 2 from the State of Western Australia;

The City procuring the Minister for Lands’ consent to the proposed sublease;

The City complying with the requirements under Sections 3.58 and 3.59 of the Local Government Act 1995;

Council formally approving the head lease, sublease and Hotel Project; and

Pacifica obtaining development approval for the Hotel Project and a “senior debt facility” to finance the Hotel Project.

 

·    The developers nominated Pacifica Ausglobal Busselton Pty Ltd as the contracting party.

 

The City and Pacifica formalised the abovementioned arrangements by way of a development deed entered into on 6 December 2019 (Agreement to Sublease). The Agreement to Sublease, head lease, proposed sublease and the public consultation process under Section 3.59 are discussed in more detail in the Officer Comment and Statutory Environment sections of this report.

 

City officers and Pacifica representatives have briefed Councillors at various stages about the nature and extent of the Hotel Project and the terms and conditions of the proposed sublease of Hotel Site 2, with Councillors consistently indicating their support for the development concept and the broader course of action. This report records the City’s compliance with the requirements under Section 3.59 of the Local Government Act 1995 (to the extent that it applies to the project) and recommends that Council formally approve the key terms and conditions of the proposed head lease and sublease.

 

OFFICER COMMENT

Since inception of the Busselton Foreshore Masterplan, development of one or more hotels within the Busselton foreshore precinct has been planned for.

 

The Hotel Project concept is for a 4 storey hotel complex comprising:

 

·    110 Luxury hotel rooms (4-star rating)

·    30 bay on-site carpark

·    Amenity and services located at ground level

·    Meeting and board room facilities

·    North facing rooftop function room with a viewing deck

·    Food and beverage facility aligned with the brand offering (and cognisant of the food and beverage offerings within walking distance of the premises)

·    Hotel operating agreement with the Hilton Group for branding and managing the hotel as a Hilton “Garden Inn”

 

The Hotel Project will require Pacifica to invest a significant amount of money in construction and fit out of the hotel building, estimated to be in excess of $20 million.

 

There are currently no 4-star hotels within the Busselton foreshore precinct or the Busselton inner city centre. The Hotel Project is expected to cater for existing broad demand for group, business and leisure accommodation in this location, as well as for additional room nights that can be expected following introduction of interstate and international flights from the upgraded Busselton-Margaret River Airport and completion of the City’s performing arts centre (BEACH project).

 

The provision of the proposed quality accommodation in such a central and desirable location will be a significant asset for tourism in the region. It further validates the potential created by several tens of millions of dollars of public investment in the Busselton foreshore over the last decade. In addition, the proposed development is expected to create a significant number of jobs over both the short and long term, which should have a positive impact on local business and benefit the local community. The Hotel Project is also expected to reduce, over the term of the sub-lease, the City’s liability to contribute municipal funds towards the ongoing maintenance and enhancement of the Busselton foreshore precinct and in the process relieve, to a certain extent, the onus on the City’s ratepayers.

 


 

Land tenure in respect to Hotel Site 2 will be structured as follows:

 

·    A head-lease from the State of Western Australia to the City for a period of 65 years, with the power to sublease; and

·    A sub-lease from the City to Pacifica (Pacifica Ausglobal Busselton Pty Ltd) for a period of up to 65 years for the purpose of developing and operating the Hotel Project. 

 

Head Lease

Subject to Council approval, City Officers are at the point of finalising the head lease for Hotel Site 2 with the Department of Planning Lands & Heritage (acting on behalf of the State of WA). The key terms and conditions of the head lease are:

 

·    Lease area

¾  The total extent if Hotel Site 2 is 3,685m2 comprising of an area of 2,265m2 for the hotel building footprint and 1,420m2 for the hotel carpark.

¾  The lease area is to be excised from Reserve 38558 and a separate title created (proposed Lot 600).

·    Term

¾  Up to 65 years.

·    Permitted use

¾  Hotel/short stay accommodation and associated car parking.

·    Rent

¾  $1,000 per year + GST.

¾  Rent review every 5 years (but will remain a nominal value).

·    Reserve account

¾  Rent income from sublease is to be deposited in the City’s Jetty Maintenance Reserve and applied to the maintenance and repair of the Busselton Jetty and, with the head lessor’s permission, capital improvements of the Busselton Jetty and the maintenance, capital improvement and care of the Busselton foreshore area.

·    Ministerial approval

¾  Dealings with any interest in the head lease or Hotel Site 2 must be approved by the relevant Minister.

·    Indicative commencement date

¾  1 January 2021.

 

Agreement to Sublease and Sublease

The Agreement to Sublease established the legal framework for the City and Pacifica to negotiate and, subject to Council and Ministerial approval, enter into a sublease of Hotel Site 2.

 

In terms of the Agreement to Sublease, Pacifica had to obtain development approval for the Hotel Project and a “senior debt facility” to finance the Hotel Project. Development approval for the Hotel Project was granted by the Southern Joint Development Assessment Panel pursuant to their meeting on 14 April 2020. Pacifica has also indicated that its financial arrangements for the Hotel Project are in place.

 

The Agreement to Sublease requires the City to:

 

·    Secure a head lease of Hotel Site 2 (see discussion under Head Lease above).

·    Obtain Ministerial consent for the sublease (the Department of Planning, Lands and Heritage indicated “in-principle” approval of the sublease. The Minister’s consent will be obtained once the sublease is ready for execution).

·    Comply with the requirements under Sections 3.58 and 3.59 of the Local Government Act 1995 (see the Statutory Environment section of this report).


 

·    Undertake and complete the following works:

 

Provide water, electricity, gas and sewerage connections to Hotel Site 2.

Construct the hotel and adjacent public carpark.

Landscaping of all road verges and footpaths adjacent to Hotel Site 2 and the adjacent public carpark.

 

These works, with an estimated cost of $350,000, must be completed within 3 months after the sublease commencement date.

 

Council’s approval of the sublease is required. The key terms and conditions of the sublease are:

 

·    Lease area

¾  Hotel Site 2.

·    Construction conditions

¾  Pacifica to construct the proposed hotel complex at their cost and risk, in accordance with concept design approved by the City.

¾  There is no obligation on the City to contribute towards the construction costs of the hotel complex, other the City works mentioned above.

·    Term

¾  35 Years with an option to extend for a further term of 30 years (at the sub-lessee’s option).

·    Permitted use

¾  Hotel/short stay accommodation and associated car parking.

·    Rent

¾  $105,000 per year + GST based on:

Market rent value of “ground lease” of the portion of land to be used for the hotel building - $100,000/year + GST; and

$5,000/year + GST for the hotel carpark, calculated with reference to the requirements under the City’s policy in relation to “cash-in-lieu” carpark contribution.

¾  The full rent amount will be phased in as follows:

Year 1 - $100 + GST

Year 2 - $25,000 + GST

Year 3 - $50,000 + GST

Year 4 - $75,000 + GST

Year 5 - $105,000 + GST

Year 6 and onwards - Previous year’s rent annually reviewed and adjusted in accordance with CPI, with market rent reviews to be undertaken every 5 years.

·    Security

¾  The sub-lessee to provide:

Rent bond equal to one year’s rent ($105,000); and

Performance bond of $500,000 for the duration of the construction phase.

¾  Due to the significant upfront investment by the sub-lessee personal (directors’) guarantees are not required.

·    Indicative timeline

¾  Sublease execution: August 2020.

¾  Sublease commencement date: 1 January 2021.

¾  Substantial commencement construction: March 2021.

¾  Practical completion construction: July 2022.

¾  Hotel opening: July/August 2022.

·    Rates and outgoings

¾  Payable by sub-lessee.

·    Insurance

¾  Effected and maintained by sub-lessee.

·    Building maintenance

¾  Undertaken by sub-lessee at sub-lessee’s cost.

·    Contamination and pollution

¾  Sub-lessee responsible for any contamination and pollution caused by its business operations and use of Hotel Site 2.

·    Right of first refusal

¾  The sub-lessee has a right of first refusal to either lease or purchase the Hotel Site 2 should:

¾  The State of WA and the City wishes to lease Hotel Site 2 after expiry of the sublease; or

¾  The City acquire freehold title to Hotel Site 2 during the sublease term and wishes to sell.

·    Restrictions

¾  The City undertakes not to allow for a period of 4 years from the sublease commencement date another hotel development within the Busselton foreshore precinct.

¾ The City commits (for a 10 year period) to notify Pacifica in the event of receiving a proposal from a third party for development of hotel site 1.

 

Abovementioned legal structure (the Agreement to Sublease and proposed head lease and sublease) is the result of years of planning by and negotiations between the City and Pacifica. It is considered a transparent, secure and effective structure for procuring successful delivery of the Hotel Project, striking a balance between the expectations and interests of all stakeholders (State of WA, the City and Pacifica).

Statutory Environment

Land Administration Act 1997

Hotel Site 2 is located within Crown Reserve 38558. The Hotel Project will require compliance with the Land Administration Act 1997 (WA) (LA Act), including a head lease (between the City and the State of WA) and approval of the sublease terms and conditions by the Minister for Lands. The City has on an ongoing basis consulted with the Department of Planning, Lands and Heritage about the project and obtained (at officer level) “in-principle approval” of the proposed head lease and sublease. The formalities under the LA Act will be finalised once the City and Pacifica is ready to enter into the sublease.

 

Local Government Act - disposal of property

Hotel Site 2 is, for purposes of the Local Government Act 1995 (WA) (LG Act), “local government property”.

 

Under Section 3.58 of the Act, a local government can only dispose of property (which includes granting a lease or sublease):

 

·    To the highest bidder at public auction;

·    By way of a public tender process; or

·    By giving local public notice of the proposed disposition and following the public consultation process as prescribed in sub-section 3.58(3) of the Act.

 

However, pursuant to Regulation 30(2a) of the Local Government (Functions and General) Regulations 1996 (WA) (Regulations), a disposition of land is exempt from the requirements under Section 3.58 if the local government complies with Section 3.59 of the Act.

 


 

Granting Pacifica a sublease of Hotel Site 2 could potentially constitute a “major land transaction” as contemplated under Section 3.59 of the Act.  Under section 3.59, read with Regulation 8A(1) of the Regulations, a major land transaction is defined as a land transaction of which the total value of the consideration under the transaction (and anything done by the local government for achieving the purpose of that transaction), is more than the lesser of:

 

·    $10 million; or

·    10% of the operating expenditure incurred by the local government from its municipal fund in the last completed financial year. 

 

The City’s operating expenditure for the 2018/19 financial year was $76.8m, with 10% thereof equating to $7.68m. With regard to the proposed sublease of Hotel Site 2 the estimated value for purposes of Section 3.59 is $7.175m (approximately $6.825m for the rent payable under the sublease at $105,0000/year over 65 years plus approximately $350,000 in respect to the City’s car park construction and landscaping works). However, these projections exclude any increases due to rent reviews.

 

Although the value of the proposed sublease may (potentially) not exceed above-mentioned threshold of $7.68m, given the significant nature of the Hotel project the City considered it prudent to comply with Section 3.59 of the Act. Accordingly:

 

·    The City prepared a business plan which included an overall assessment of the proposed sublease and Hotel Project (“major land transaction”);

·    Gave Statewide and local notice, stating that the City proposes to enter into the proposed “major land transaction”; and

·    Made a copy of the business plan available for public comment and invited submissions about the proposed “major land transaction”.

 

The business plan assessed the proposed “major land transaction” against a number of considerations, including the:

 

·    expected effect on the provision of facilities and services by the City;

·    expected effect on other persons providing facilities and services in the district;

·    expected financial effect on the City;

·    expected effect on matters referred to in the City’s current plan; and

·    ability of the City to manage the undertaking or the performance of a major land transaction.

 

The submission period closed in January 2020 and no submissions were received. In accordance with Section 3.59(5), Council is now required to decide (by absolute majority) whether to proceed with the “major land transaction” as proposed (or in a manner that is not significantly different from what was proposed).

Relevant Plans and Policies

The Officer Recommendation aligns to the following adopted City plans or policies:

 

Busselton Foreshore Statement of Intent

On 8 June 2011 (C1106/180), the former Busselton Shire Council adopted a ‘Statement of Intent’ for the development of the Busselton Foreshore, recognising a balanced approach is required to ensure sustainable outcomes from public and private investment. 

 


 

The statement concluded:

“the foreshore will be developed in a manner that respects Busselton’s identity and heritage whilst providing economic, social, environmental and cultural benefits to the Shire (sic) and the South West region”.

 

This statement was updated and reaffirmed by Council on 25 February 2015 (C1502/037).

 

Busselton Foreshore Master Plan (BFMP)

The most recent amendment to the BFMP was adopted by Council (C1602/031) on 24 February 2016 and identified three sites for hotels/short-stay accommodation.

 

Busselton Foreshore Structure Plan

The Structure Plan includes Hotel Site 2 in the ‘Short Stay Accommodation’ Precinct and sets the following precinct objective:

 

“This precinct will provide for high quality development sites for tourist accommodation and supporting land uses, aiming to provide active frontage to the east-west spine road, landscaped setting and retain wide view corridors between buildings.  The predominant land use in this precinct will be short stay accommodation such as hotels and serviced apartments.  Restaurants, shops and bars will be provided at ground level to address surrounding streets and the public realm”.

 

The Structure Plan also sets out the following more detailed town planning controls relating to land use, building heights and floor areas in respect to Hotel Site 2:

 

Precinct objective:

Short stay accommodation.

Use Classes:

Hotel, Tourist Accommodation, Shop, Tavern; all with ‘D’ permissibility, meaning that the use is permitted when the local government has exercised its discretion by granting development approval.

Storeys:

Four plus loft.

Maximum height:

16m Top of external wall

18m Top of external wall (concealed roof)

20m Top of pitched roof

Maximum building ground floor area:

2,265m2

 

The Southern Joint Development Assessment Panel (SJDAP) considered the Structure Plan and broader planning framework, and granted development approval for Hotel Site 2 on 14 April 2020.

 

Leasing of City Premises

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

 

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

·    Creation of employment;

·    Promotion of tourism;

·    Economic return; and

·    Impacts on social, economic and environmental outcomes.

 

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

Financial Implications

The initial annual rent payable by the City to the State of WA pursuant to the proposed head lease is a nominal amount of $1,000 + GST per year. Although the proposed head lease provides for a rent review every 5 years, it also stipulates that the rent will “remain an agreed nominal rental”.

 

The rent payable by Pacifica to the City under the proposed sublease is $105,000 + GST per year. To allow Pacifica leniency during the construction phase of the Hotel Project and to establish its business, the rent will be staged (as outlined under Officer Comment above). Rent income will be directed towards maintenance costs associated with the Busselton Jetty (and, to the extent that the Minister for Lands agrees to it, towards foreshore maintenance, preservation and improvement. Rent income from the sublease should reduce the City’s reliance on other municipal income for maintaining the Busselton Jetty and Busselton foreshore.

 

The City’s obligations with regard to constructing the hotel and adjacent public carpark and undertaking landscaping works adjacent to Hotel Site 2 is estimated to be $350,000. Provision for this expenditure has been made in the City’s 2019/20 and 2020/21 budgets.

 

Long-term Financial Plan Implications

The proposed annual expenditure on the head lease and revenue from the sub-lease have been factored into the Long Term Financial plan.

Stakeholder Consultation

Since redevelopment of the Busselton foreshore was conceptualised in 2009, the City has undertaken ongoing, extensive public consultation. This included consulting with the public on the Busselton Foreshore Master Plan and various iterations of the Busselton Foreshore Development Guide Plan, and inviting public submissions about the proposed sublease and Hotel Project. The public generally indicated strong support for redevelopment of the Busselton foreshore, including the Hotel Project.

 

The City has also worked closely with and had strong support from the Department Planning, Lands and Heritage since inception of Pacifica’s proposal to develop the Hotel Project.

Risk Assessment

Should Council adopt the Officer Recommendation, it is considered that are no residual risks rated as medium or high, as these risks, to the extent that it is reasonably and practically achievable, have been mitigated through the terms and conditions of the proposed sublease.

 

These mitigating measures include:

 

Risk

Mitigating Measures

Site Conditions

Under the sublease Pacifica assumes all risk in relation to site conditions.

Construction obligations

Under the sublease Pacifica is required to construct the hotel building in accordance with a design pre-approved by the City and within specific timeframes. A number of “construction” clauses in the sublease will regulate matters such as building variations, submitting and complying with a works program, health and safety requirements, working hours and defects liability.


 

Pacifica not completing the building

 

A performance bond of $500,000 is payable to the City upon commencement of the sublease, which will fund demolition site remediation costs should the Hotel Project for whatever reason fail prior to completion of the building.

Rent bond

Pacifica must provide an unconditional bank guarantee equal to one year’s rent to cover any breaches of lease conditions.

Insurance

 

Pacifica will be required to insure all improvements for replacement value and effect and maintain public liability insurance of $20 million in respect of any one claim.

Building maintenance

 

Clauses have been added to the sub-lease requiring internal and external conditions of the building to be well maintained, acknowledging that the hotel building will be strategically located within the Busselton Foreshore Precinct and in the vicinity of the iconic Busselton Jetty.

 

In general, the risk associated with the Hotel Project and proposed head and sublease is considered to be acceptable.

Options

As an alternative to the Officer Recommendation, the Council may elect to not proceed with the proposed head lease and sub-lease or resolve to amend the terms and conditions negotiated by Officers. If any Councillor is minded to any of the above options officers can assist with the drafting of a suitable alternative motion.

CONCLUSION

The Hotel Project and the proposed legal structure for the project should unlock a highly valuable and well-located land asset on the Busselton foreshore (that is Hotel Site 2) and balance complex land administration processes and local economic conditions.  It is also expected that this project will secure, over the long term, sound economic development outcomes for the City and the region.

This Business Plan indicates that:

·    The Hotel Project is not expected to have any adverse impacts on the provision of facilities and services by the City;

·    The benefit of the Hotel Project to the community and the broader region outweighs any expected adverse effect on other persons providing facilities and services in the district;

·    The City is expected to benefit financially from the Project; and

·    The City has sufficient capacity and capability to manage the undertaking and ongoing performance of the Project.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Should Council support the Officer Recommendation, officers should be able to finalise and arrange for execution of the head lease and sublease during August 2020. The head lease and sublease will commence on 1 January 2021, with July/August 2022 as indicative completion date of the hotel building.

 


Council

250

24 June 2020

16.1

Attachment a

Plan Hotel Site 2

 


Council

251

24 June 2020

16.1

Attachment b

Busselton Foreshore Structure Plan

 

 


Council                                                                                      253                                                                    24 June 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

Nil

 

OFFICER RECOMMENDATION

 

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

17.1.1       Current Active Tenders 

 

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       Current Active Tenders 

 

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

 

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.

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

·    To ensure the most advantageous outcome for the City pre-qualified suppliers on the City’s newly established Construction Services Panel were invited to submit quotations for this project (RFQ 22/20).

·    Only three of the five pre-qualified suppliers on Sub Panel B submitted quotations pursuant to RFQ 22/20.

·    In relation to RFT 02/20, a recommendation will be made to the CEO to decline to accept any tender pursuant to Regulation 18(5) of the Local Government (Functions and General) Regulations 1996 and Delegation DA 1-07.

·    At its meeting on 10 June 2020, Council accepted the quotation (RFQ 22/20) from Devlyn Australia Pty Ltd as the most advantageous quotation and delegated power and authority to the CEO to negotiate and agree with the Successful Contractor minor variations to the contract subject to such variations and the final terms not exceeding the overall project budget.

 

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.

·    Eight submissions were received and have been evaluated.

·    A contract was awarded by the CEO under delegation to Alluvium Consulting Australia Pty Ltd in May 2020.

 

RFT05/20 UPGRADE OF MECHANICAL SERVICES TO THE GEOGRAPHE LEISURE CENTRE

 

·    Requirement – to supply and install a modification to the existing mechanical system at the Geographe Leisure Centre.

·    A Request for Tender was advertised on 9 May 2020 with a closing date of 26 May 2020. 

·    The value of the contract is not expected to exceed the CEO’s current delegated authority under Delegation DA 1-07 and it is expected that the evaluation will be completed and a contract will be entered into during June 2020.

·    Two submissions were received and are currently under evaluation.

 

RFT06/20 BUSSELTON FORESHORE EXERCISE EQUIPMENT – DESIGN, FABRICATION AND INSTALLATION

 

·    Requirement – the design, fabrication and installation of six (6) exercise equipment stations at the Busselton Foreshore. 

·    A Request for Tender was advertised on 9 May 2020 with a closing date of 26 May 2020. 

·    The value of the contract is not expected to exceed the CEO’s current delegated authority under Delegation DA 1-07 and it is expected that the evaluation will be completed and a contract will be entered into during June 2020.

·    One submission was received and is currently under evaluation.

  


Council                                                                                      254                                                                    24 June 2020

18.             Motions of which Previous Notice has been Given

18.1           MOTION TO REDUCE PROJECTED COST OF THE BEACH 

Councillor Sue Riccelli has given notice that at the Council meeting on 24 June 2020, she will move the below motion:

 

MOTION

 

That the Council requests the Chief Executive Officer and project staff to reduce the cost of the BEACH to the original forecast budget should additional funding from the State Government not be forthcoming.

 

REASONS

The City’s original business case for the BEACH was $20.7 million. With this original forecast in mind alongside Federal Government funding, the City was still required to borrow approximately $7.5 million creating a possible 0.5% rate increase to ratepayers.

 

The BEACH project has now increased to approximately $30.3 million with a lack of community consultation and awareness. If the requested repurposing of the $9.5 million Regional Airport Development terminal funding from the State Government is not redirected towards the BEACH as proposed, this will require the City to borrow approximately $17 million which will come at a significant cost to ratepayers.

 

The majority of large performing arts centres run at a significant loss. An example being the BREC in Bunbury, which runs at a loss of approximately $1.5 million p/a and has a far greater catchment area than Busselton. Whilst the estimated attendance figures and costings provided indicated this may not be the case, I am concerned these figures are overinflated, particularly given the uncertainty of our current and future economic climate. To offset this with a $17 million loan creates a 20-year debt and significant risk to our budget and ratepayers.

 

OFFICER COMMENT

The Chief Executive Officer will provide a full and considered response to the motion once he has had further time to review the motion in greater detail, noting the final motion was only received within 24 hours of publication of the final agenda.

 


Council                                                                                      256                                                                    24 June 2020

18.2           MOTION FOR REPURPOSING OF REGIONAL AIRPORT DEVELOPMENT FUNDING

                   Councillor Sue Riccelli has given notice that at the Council meeting on 24 June 2020, she will move the below motion:

 

MOTION

That the Council contact the Minister for Regional Development and the Minister for Transport to support the repurposing of the $9.5 million Regional Airport Development terminal funding for economic stimulus projects within the City of Busselton, with primary allocation to the Australian Underwater Discovery Centre and secondary funding to the BEACH project.

 

REASONS

Whilst both the BEACH and Australian Underwater Discovery Centre (AUDC) will create jobs and stimulate the economy, the AUDC deserves primary funding for the following reasons:

 

·    The Busselton Jetty / AUDC was recently awarded Top Tourist Attraction in West Australia (and third best attraction in Australia). The Busselton Jetty is the longest timber-piled tourist jetty in the southern hemisphere. Busselton Jetty attracts over 500,000 visitors annually, making it the second most visited tourist attraction in the State. It was determined that a new underwater observatory would overcome the significant limitations of the existing underwater observatory and meet increasing visitor demand.

·    The AUDC project aligns with the “State Government Strategy for Tourism in WA 2020” (and has already been supported by Minister Paul Papalia) including:

Grow tourism value by increasing desirability of the South West / West Australia as a travel destination, so people visit, stay longer and spend more;

Develop economic infrastructure that stimulates regional visitation and Australian global tourism competitiveness;

Create a product that will extend the tourism season;

Create a unique marine-based experience that will be known worldwide;

Develop a tourism experience that resonates with the State’s key target markets – China, Malaysia, Singapore and the UK;

Leverage opportunities from potential visitor streams from Busselton Airport redevelopment and other tourism markets;

Support new job creation in regional communities in Western Australia; and

Promote natural environment conservation and education through immersive/sensory interpretation and curriculum based programs.

 

Employment opportunities will be generated by both the AUDC and BEACH, however and economic assessment of employment for the City of Busselton is as follows:

 

BEACH:

·    City of Busselton - 17.2 FTE

·    South West – 17.5 FTE

·    Western Australia – 19.2 FTE

AUDC:

·    City of Busselton - 48 FTE

·    South West 46 FTE

·    Western Australia – 24 FTW

Contributions to GRP (operating phase – first full year, direct and indirect) as follows:

·    BEACH City of Busselton $0.7 million

·    AUDC City of Busselton $4.72 million

 

Competition impact (on other private businesses):

BEACH will compete directly with the Geographe Bayview Resort (350 seats), new Hilton Hotel (150 seats), Abbey Beach and Pullman Resorts. AUDC will be unique and renowned as a worldwide attraction. The AUDC is an economic enabling infrastructure bringing new wealth into the economy. The BEACH, from an economic perspective, is a redistribution of wealth (new money does not enter the economy). Interstate and international visitors may utilise the BEACH, but it is not what actually enticed them to the region.

 

OFFICER COMMENT

The Chief Executive Officer will provide a full and considered response to the motion once he has had further time to review the motion in greater detail, noting the final motion was only received within 24 hours of publication of the final agenda.

   


Council                                                                                      257                                                                    24 June 2020

19.             urgent business

 

20.             Confidential Matters

Nil 

 

21.             Closure