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

CITY OF BUSSELTON

MINUTES FOR THE Council MEETING HELD ON 25 November 2020

TABLE OF CONTENTS

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

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

2....... Attendance. 3

3....... Prayer. 4

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

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

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

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

8....... Confirmation and Receipt Of Minutes. 4

Previous Council Meetings. 4

8.1          Minutes of the Council Meeting held 11 November 2020. 4

Committee Meetings. 4

8.2          Minutes of the Finance Committee Meeting held 11 November 2020. 4

8.3          Minutes of the Audit Committee Meeting held 13 November 2020. 5

9....... RECEIVING OF Petitions, Presentations AND DEPUTATIONS. 5

10..... QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN (WITHOUT DISCUSSION). 5

11..... Items brought forward.. 6

ADOPTION BY EXCEPTION RESOLUTION.. 6

12.1        Finance Committee - 11/11/2020 - LIST OF PAYMENTS MADE - SEPTEMBER 2020. 7

12.2        Finance Committee - 11/11/2020 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 SEPTEMBER 2020. 17

12.3        Audit Committee - 13/11/2020 - CITY OF BUSSELTON 2019/2020 ANNUAL FINANCIAL REPORT, AUDITORS' REPORT AND MANAGEMENT LETTER. 53

16.2        ST JOHN AMBULANCE OF WESTERN AUSTRALIA LIMITED LEASE. 142

17.1        COUNCILLORS INFORMATION BULLETIN.. 146

ITEMS TO BE DEALT WITH BY SEPARATE RESOLUTION (WITHOUT DEBATE). 149

16.1        PARKING LOCAL LAW... 149

ITEMS FOR DEBATE. 181

13.1        PROPOSED MODIFIED BUSSELTON FORESHORE STRUCTURE PLAN - CONSIDERATION FOR ADOPTION FOR ADVERTISING.. 181

14..... Engineering and Work Services Report. 265

15..... Community and Commercial Services Report. 266

18..... Motions of which Previous Notice has been Given.. 267

19..... urgent business. 267

20..... Confidential Reports. 267

21..... Closure. 267

 


Council                                                                                      4                                                            25 November 2020

MINUTES

 

MINUTES OF A Meeting of the Busselton City Council HELD IN Council Chambers, Administration Building, Southern Drive, Busselton, ON 25 November 2020 AT 5.30pm.

 

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

The Presiding Member opened the meeting at 5.30pm.

 

2.               Attendance

Presiding Member:

Members:

 

Cr Grant Henley     Mayor

Cr Kelly Hick             Deputy Mayor

Cr Sue Riccelli

Cr Ross Paine

Cr Kate Cox

Cr Paul Carter

Cr Phill Cronin

Cr Jo Barrett-Lennard

Cr Lyndon Miles

 

Officers:

 

Mr Mike Archer, Chief Executive Officer

Mr Oliver Darby, Director, Engineering and Works Services

Mr Paul Needham, Director, Planning and Development Services

Mrs Naomi Searle, Director, Community and Commercial Services

Mr Tony Nottle, Director, Finance and Corporate Services

Mrs Emma Heys, Governance Coordinator

Ms Melissa Egan, Governance Officer

 

Apologies:

 

Nil

 

Approved Leave of Absence:

 

Nil

 

Media:

 

“Busselton-Dunsborough Times”

 

Public:

 

1

 

3.               Prayer

The prayer was delivered by Pastor Lee Sykes of Cornerstone Church.

 

4.               Application for Leave of Absence 

Nil

 

5.               Disclosure Of Interests

Nil

 

6.               Announcements Without Discussion

Announcements by the Presiding Member

 

Nil

 

7.               Question Time For Public

Response to Previous Questions Taken on Notice

 

Nil

Question Time for Public

 

Nil

 

8.               Confirmation and Receipt Of Minutes

Previous Council Meetings

8.1             Minutes of the Council Meeting held 11 November 2020

Council Decision

C2011/134              Moved Deputy Mayor K Hick, seconded Councillor P Cronin

That the Minutes of the Council Meeting held 11 November 2020 be confirmed as a true and correct record.

CARRIED 9/0

 

Committee Meetings

8.2             Minutes of the Finance Committee Meeting held 11 November 2020

Council Decision

C2011/135              Moved Councillor P Carter, seconded Councillor J Barrett-Lennard

That the Minutes of the Finance Committee Meeting held 11 November 2020 be noted.

CARRIED 9/0

 

8.3             Minutes of the Audit Committee Meeting held 13 November 2020

Council Decision

C2011/136              Moved Councillor P Cronin, seconded Councillor P Carter

That the Minutes of the Audit Committee held 13 November 2020 be noted.

CARRIED 9/0

 

9.               RECEIVING OF Petitions, Presentations AND DEPUTATIONS

Petitions

 

Nil

Presentations

 

Nil

Deputations

 

Nil

 

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

Nil

11.             Items brought forward

ADOPTION BY EXCEPTION RESOLUTION

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

 

Council Decision

C2011/137              Moved Councillor J Barrett-Lennard, seconded Councillor S Riccelli

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

12.1        Finance Committee - 11/11/2020 - LIST OF PAYMENTS MADE - SEPTEMBER 2020

12.2        Finance Committee - 11/11/2020 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 SEPTEMBER 2020

12.3        Audit Committee - 13/11/2020 - CITY OF BUSSELTON 2019/2020 ANNUAL FINANCIAL REPORT, AUDITORS' REPORT AND MANAGEMENT LETTER

16.2        ST JOHN AMBULANCE OF WESTERN AUSTRALIA LIMITED LEASE

17.1        COUNCILLORS INFORMATION BULLETIN

CARRIED 9/0

 


Council                                                                                      7                                                            25 November 2020

12.1           Finance Committee - 11/11/2020 - LIST OF PAYMENTS MADE - SEPTEMBER 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 September 2020

 

This item was considered by the Finance Committee at its meeting on 11/11/2020, the recommendations from which have been included in this report.

 

Council Decision and Committee Recommendation and Officer Recommendation

C2011/138              Moved Councillor J Barrett-Lennard, seconded Councillor S Riccelli

That the Council notes payment of voucher numbers M118280 – M118334, EF074004 – EF074590, T7528 – T7530, DD004239 – DD004285 together totalling $32,812,736.17.

CARRIED 9/0

En Bloc

 

EXECUTIVE SUMMARY

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

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Council

9

25 November 2020

12.1

Attachment a

List of Payments September 2020

 









Council                                                                                      17                                                          25 November 2020

12.2           Finance Committee - 11/11/2020 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 SEPTEMBER 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 September 2020

Attachment b    Financial Activity Statement September 2020

 

This item was considered by the Finance Committee at its meeting on 11/11/2020, the recommendations from which have been included in this report.

 

Council Decision and Committee Recommendation and Officer Recommendation

C2011/139              Moved Councillor J Barrett-Lennard, seconded Councillor S Riccelli

That the Council receives the statutory financial activity statement reports for the period ending 30 September 2020, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations.

CARRIED 9/0

En Bloc

 

EXECUTIVE SUMMARY

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

 

This report has been compiled to fulfil the statutory reporting requirements of the Act and associated Regulations, whilst also providing the Council with an overview of the City’s financial performance on a year to date basis for the period ending 30 September 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 27 July 2020, the Council adopted (C2007/071) the following material variance reporting threshold for the 2020/21 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 2020/21 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 only if not to do so would present an incomplete picture of the financial performance for a particular period; 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 September 2020

The Statement of Financial Activity (FAS), for the year to date as at 30 September 2020 shows an overall Net Current Position of $45.1M as opposed to the budget of $38.4M.  This represents a positive variance of $1.5M YTD. 

 

The following table summarises the major YTD 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.  Each numbered item in this lead table is explained further in the report.

 

Description

2020/21
Actual YTD

$

2020/21
Amended
Budget YTD

$

2020/21
Amended
Budget

$

2020/21
YTD Bud Variance

%

2020/21
YTD Bud Variance

$

Change in Variance Current Month

$

Revenue from Ordinary Activities

 

(0.48%)

(302,824)

(37,326)

1.     Interest Earnings

417,396

341,046

1,046,684

22.39%

76,350

27,048

 

 

 

 

 

 

Expenses from Ordinary Activities

 

13.80%

2,841,348

963,828

2.     Materials & Contracts

(2,849,739)

(4,659,812)

(18,710,746)

38.84%

1,810,073

601,112

3.     Utilities

(559,775)

(700,893)

(2,770,956)

20.13%

141,118

52,682

4.     Other Expenditure

(531,300)

(1,124,088)

(5,236,779)

52.73%

592,788

316,404

 

 

 

 

 

 

 

5.    Non-Operating Grants, Subsidies and Contributions

2,360,476

3,112,030

29,904,462

(24.15%)

(751,554)

(789,716)

 

 

 

 

 

 

 

Capital Revenue & (Expenditure)

 

28.61%

3,801,052

509,861

6.     Land & Buildings

(1,363,490)

(1,639,997)

(17,454,059)

16.86%

276,507

(52,205)

Plant & Equipment

(205,528)

(384,086)

(2,510,340)

46.49%

178,558

(25,596)

Furniture & Equipment

(101,303)

(70,755)

(461,088)

(43.17%)

(30,548)

(77,703)

        Infrastructure

(2,967,147)

(7,620,541)

(35,785,600)

61.06%

4,653,394

1,780,938

7.     Proceeds from Sale of Assets

121,925

221,500

581,500

(44.95%)

(99,575)

3,018

8.     Repayment of Capital Lease

(236,974)

(130,474)

(521,900)

(81.63%)

(106,500)

(108,123)

9.     Transfer to Restricted Assets

(1,062,473)

(13,752)

(62,750)

(7625.95%)

(1,048,721)

(949,889)

10.  Transfer from Restricted Assets

45,262

0

2,747,074

100.00%

45,262

24,580

11.  Transfer from Reserves

1,421,153

1,621,005

34,768,797

(12.33%)

(199,852)

(1,625)

 


 

Revenue from Ordinary Activities

Actual income from ordinary activities for August YTD is ($303K), or (0.48%), less than YTD budget.  Although overall revenue is under YTD budget, the following YTD item is the only item that meets the material variance reporting thresholds, which is positive:

 

1.    Interest Earnings YTD of $417K actual is $76K better than YTD budget.  This represents budget timing issues as there was nothing budgeted in the July month.  It is believed that the variance will rectify as the year progresses, with possible further reductions in interest rate returns.

 

Expenses from Ordinary Activities

Expenditure from ordinary activities is $948K or 13.7% less than expected when compared to the budget YTD as at September.  The following individual expense line items on the face of the financial statement have YTD variances that meet the material reporting thresholds:

 

2.    Materials and Contracts

Better than budget by $1.8M or 38.8%. The table below lists the main variance items that meet the reporting thresholds:

Cost Code

Cost Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Change in Variance Current Month

$

Comments

Finance and Corporate Services

430,907

571,326

140,419

46,127

 

10250

Information & Communication Technology Services

272,038

334,247

62,209

67,373

Largely due to a lower than expected spend on consultants, caused by lingering delays in various projects due to COVID.  Also, a planned longer term consulting arrangement with a Tech1 specialist has been facilitated via a fixed term employment contract, rather than via consultancy fees.

10521

Human Resources & Payroll

895

28,339

27,444

3,113

Underspend due to misallocation of WALGA membership invoice, and due to other priorities, Consultants have not been utilised to date this year.

 

 

 

 

 

 

 

 

Community and Commercial Services

241,878

585,720

343,842

93,042

 

10541

Recreation Planning

 -

28,499

28,499

4,167

Timing of expenditure is largely due in Q2 & Q3 due to flora/ fauna assessment scheduling and awaiting the outcomes of external grant applications.  Budget timing will be adjusted accordingly.

10591

Geographe Leisure Centre

69,278

97,435

28,157

5,260

The Geographe Leisure Centre was closed due to COVID and upon reopening was subject to phased restrictions which limited the attendance numbers and therefore expenditure associated with our programs and services throughout July and into August and September. To date we are still limited by Phase 4 restrictions and have limited numbers in some activities affecting a slow return to business as usual and therefore planned expenditure.  Business is now picking up and we are likely to see increased expenditure over the next few months in line with budget.

10600

Busselton Jetty Tourist Park

86,100

145,254

59,155

7,284

The majority of this variance cost is the monthly management contract fee ($41,125) for the caravan park which has resulted due to a timing issue with presentation and payment of the invoice. Other expenses falling within Materials & Contracts are related to maintenance which will occur throughout the year.

 

 

 

 

 

11151

Airport Operations

37,029

150,078

113,049

15,509

The budget YTD monthly allocation for Airport Ops of $150k includes the key allocations of:

·    Security screening allocations of $45k not spent

·    Contractors - $49k for water tank removal & tree clearing not completed/expended

·    Smaller variances in other cost codes (3224) not expended

Planning and Development Services

215,901

537,833

321,932

121,369

 

10830

Environmental Management Administration

38,371

150,105

111,734

103,031

Expenditure variance due to the timing of the awarding of Revitalising Geographe Waterways and Weed Action Plan contracts.

10925

Preventative Services – CLAG

20,504

45,249

24,745

(5,421)

CLAG mosquito treatments have just commenced for the season and will soon be reflected in the accounts accordingly.

10931

Protective Burning & Firebreaks-Reserves

7,545

135,972

128,427

44,097

Q2 mitigation well underway, with all spring burns now complete. Invoices for works completed are starting to be received as of 26/10/2020.

11170

Meelup Regional Park

11,293

39,078

27,785

3,252

Reserve maintenance work and pest/weed control contracts have now commenced according to budget.

 

 

 

 

 

 

 

 

 

 

 

 

Engineering and Works Services

1,960,013

2,962,718

1,002,705

340,408

 

12600

Street & Drain Cleaning

75,291

109,434

34,143

4,493

Expenditure timing - large component of this budget provides for a program of pre-winter drainage maintenance that occurs during summer months.

12620 & 12621

Rural & Urban Tree Pruning

27,796

94,500

66,704

16,280

Expenditure timing and reduced expenditure to potentially offset May 2020 storm damage subject to DRFAWA claims.

Various

Bridges

3,337

45,303

41,966

14,277

Expenditure timing and reduced expenditure to potentially offset May 2020 storm damage subject to DRFAWA claims.

Various

Buildings

244,009

355,269

111,260

1,948

The majority of scheduled maintenance activities to Buildings occur in the second half of the financial year; hence the year to date variance to budget (which is spread evenly).

Various

Other Infrastructure Maintenance

144,486

436,812

292,326

100,313

Expenditure attributable to timing with the budget having been evenly spread across the financial year. Material & Contractor costs associated with these areas will gradually increase as year progresses.

 


 

Various

Waste services

263,645

667,052

403,407

158,316

The larger variances are due to delays processing significantly higher volumes of green waste (and therefor pay), due to more people being at home because of COVID impacts, plus two major storm events.  There were also delays in receiving invoices from various aspects of the recycling contractor.  Additionally, we’ve got a few outstanding invoices that we haven’t paid as we are seeking a discount from the recycling Contractor, Cleanaway. Another contributing factor is that the City suspended the FOGO service due to COVID (i.e. No collection & No Processing costs), for the remainder of the financial year.

Various

Roads Maintenance

577,774

216,702

(361,072)

(41,958)

Costs are largely associated with WANDRRA storm claim from the May 2020 storm events. 3 claims have been submitted to DFES, with 1 further claim required for remaining recovery costs.

Various

Reserve Maintenance

196,839

493,743

296,904

62,384

Costs associated with Public Open Spaces are historically low to the year to date budget in the first few month of any new financial year. These costs will begin to increase as we move towards spring and the busy summer tourism peak period.

 


 

5280

Transport - Fleet Management

400,185

535,779

135,594

29,545

The variance in fleet is due to both delays in supplier invoicing and the reduced maintenance activities due to lower winter utilisation.  Fuel was underspent by $79,398 YTD due to delays in receiving invoices, lower fuel cost, lower plant utilisation due to winter and less light fleet use due to working from home.  Tyre purchase was underspent by $14,286 YTD, replacement parts/ tooling/contractor costs were underspent by $41,844 YTD.  Budget is spread evenly across the year, however spending is generally more cyclical in nature and peaks in the busier spring / summer/ autumn months.

3.    Utilities

Costs are $141K under budget.  At year ended 30 June 2020, the June street lighting account was booked in June, rather than in the following month when received per normal practice.  Accruals are not done on a monthly basis, so this has the effect of causing actuals to appear to be on average $75K behind budget in relation to street lighting (until the following June, when actuals will catch up to budget).  Coupled with this there have been delays in receiving the accounts for parks & reserves from Synergy, due to system issues at their end (along with a number of other electricity accounts).  With no accruals on a monthly basis, this also causes what appears to be an under spend against the budget.  Pending resolution of the system issues at Synergy, this should largely rectify itself in coming months as the billing cycles re-align.


 

4.    Other Expenditure

$593K under the budget. The main contributing items are listed below:

Cost Code

Cost Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Change in Variance Current Month

$

Comments

Finance and Corporate Services

117,360

186,905

69,545

10,833

 

10000

Members of Council

89,110

135,418

46,308

8,307

Councillor fees and allowances are paid one month in arrears, apart from June, where there is effectively a double up to ensure the full year figures are correct per YTD budget.  The budget however is allocated to every month, causing a variance in July, which gradually resolves by June.

Community and Commercial Services

352,430

852,521

500,091

320,346

 

10530

Community & Commercial Services Administration

218,519

172,019

(46,500)

(9,357)

The CinefestOZ sponsorship amount of $80k was paid from this account in error and accounts for part of the YTD variance in addition to the annual budget allocation for events and marketing areas being incorrectly allocated over the duration of the year. The budget monthly allocations will be rectified for subsequent months following finalisation of the funding agreements and payment schedules.

10536

School Chaplaincy Programs

41,400

 -

(41,400)

(41,400)

Historically Youthcare invoices the City in the 2nd half of the year, but this year invoiced earlier than budgeted.

 


 

10567

CinefestOZ

 -

120,000

120,000

 -

YTD variance is due to the CinefestOZ sponsorship amount being incorrectly paid out of 10530 (a request will be made to journal funds from 10530 to this account to correct the error). Further, the sponsorship contract was varied due to change in format as a result of COVID (C2009/110) - $80k paid in 2020/21 with the balance ($38k) carried over to be paid in addition to 2021/22 MYA.

11151

Airport Operations

 -

413,825

413,825

378,553

The budget relates to the Airline Attraction program expenditure for Jetstar RPT flights. This has been COVID affected and subsequent budget timings will be adjusted.

 

5.    Non-Operating Grants, Subsidies & Contributions

The negative variance of $752K is mainly due to the items in the table below. It should be noted that any variance in this area will approximately correlate to an offsetting variance in a capital project tied to this funding source. This can be seen in the section below that outlines the capital expenditure variances.

Revenue Code

Revenue Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Change in Variance Current Month

$

Planning and Development Services

10,592

(17,223)

27,815

27,815

B1025

Yallingup Coastal Bushfire Brigade – Donated Assets

10,592

 -

10,592

10,592

B9109

Hithergreen Building Renovations – State Capital Grant

 -

(17,223)

17,223

17,223

Engineering and Works Services

2,349,884

3,125,253

(775,369)

(2,985,253)

B9407

Busselton Senior Citizens – Developer Cont. Utilised

233,458

162,479

70,979

(162,479)

B9591

Performing Arts Convention Centre – Developer Cont. Utilised

 -

1,000,000

(1,000,000)

(1,000,000)

C0059

Dunsborough Yacht Club Carpark – Developer Cont.

60,000

 -

60,000

 -

C3186

Lou Weston Oval Courts - Developer Cont. Utilised

100,000

 -

100,000

100,000

F1022

Buayanyup Drain Shared Path – State Capital Grant

 -

80,001

(80,001)

(80,001)

S0005

Ludlow Hithergreen Road Second Coat Seal – MR Capital Grant

180,000

112,500

67,500

(112,500)

S0048

Bussell Highway - Developer Cont. Utilised

200,000

125,001

74,999

(125,001)

S0073

Gale Road Rural Reconstruction – Federal Capital Grant

379,616

343,122

36,494

(343,122)

S0075

Local Road and Community Infrastructure Program – Federal Capital Grant

480,935

240,468

240,467

(240,468)

T0020

Capel Tutunup Road – RTR Capital Grant

 -

356,682

(356,682)

(356,682)

 

6.    Capital Expenditure

As at 30 September 2020, there is an underspend variance of 52.27% or $5.1M in total capital expenditure, with YTD actual at $4.6M against the YTD amended budget of $9.7M.  Almost all of this positive underspend variance is offset by the negative variance in Non-operating Grants, Contributions & Subsidies discussed above, plus negative variances in Transfers From Reserves related to funds held aside for these projects.  The attachments to this report include detailed listings of all capital expenditure (project) items, however the main areas of YTD variance are summarised as follows:

Cost Code

Cost Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Change in Variance Current Month

$

Comments

Buildings

1,351,390

1,614,997

263,607

(65,105)

 

B9516

Busselton Library Upgrade

249,722

301,000

51,278

11,460

Project was underspent due to mid-June 2020 contract award which occurred later than expected.  Works have been completed in October.

B9407

Busselton Senior Citizens

590,823

549,925

(40,898)

(169,858)

Works completed in September 2020, however the budget was spread over a longer period.

B9591

Performing Arts Convention Centre

422,764

495,838

73,075

58,278

Regional Growth Fund milestones are under review pending funding extension confirmation.  Design contract program extension pending. 

Budgeted cash flow is under review on this basis.

B9596

GLC Building Improvements

2,564

122,913

120,349

40,771

Carried over works from the prior year.  Works scheduled to be completed in November 2020.

B9606

King Street Toilets

48,382

11,508

(36,874)

(37,187)

Works completed, however budget has been spread over a longer time period.


 

B9607

General Buildings Asset Renewal Allocation (Various Building)

5,033

37,500

32,467

7,590

Delays in commencement of numerous jobs caused by COVID and inclement weather.  Largely on-track per budget in the ensuing months.

Plant & Equipment

205,528

384,086

178,558

(25,596)

 

10810

Statutory Planning

 -

35,000

35,000

 -

Vehicle not yet ordered – awaiting confirmation of government pricing.  Delays in delivery are due to the high demand currently being experienced by dealers due to the government’s stimulus package in concurrence with supply chain restrictions due to COVID.

10920

Environmental Health Services Administration

 -

35,000

35,000

35,000

Vehicle ordered, not yet delivered.  Reasoning per above.

11156

Airport Development Operations

166,365

70,776

(95,589)

(142,773)

$38K Vehicle ordered – due to be delivered late October/early November. Costs to transfer siren/lights etc. still to come.  Delays due to not being able to discuss changeover issues with the Airport team in order to amend configuration if necessary.  The remaining variance relates to baggage handling equipment installation which has not been fully completed due to COVID related travel restrictions.

11402

Plant Purchases (P10)

 -

40,000

40,000

 -

Generators at DWF pond & cell – not yet replaced.  Site and operations under review.

11403

Plant Purchases (P11)

 -

77,500

77,500

72,500

One vehicle ordered, not yet delivered – reasoning similar to above. One vehicle not yet ordered.

11500

Operations Services Administration

 -

40,000

40,000

 -

Vehicle ordered, not yet delivered – reasoning similar to above.


Furniture & Office Equipment

101,303

70,755

(30,548)

(77,703)

 

10250

Information & Communication Technology Services

101,303

47,755

(53,548)

(80,703)

There was a mis-posting of consulting fees of $86K.  This has been corrected in October.  The variance would have been positive $32K, for the following reason: Alternative solution found for the Fully Qualified Domain Name project that resulted in a lower spend up front, the capital assigned will now include a migration to Exchange Online which was always an option within the initial project. Expect the costs to be drawn in Q4 2020.

Infrastructure By Class

2,967,147

7,620,541

4,653,394

1,780,938

In the first quarter of the financial year a majority of Projects are in the planning and design phase and as such minimal actual expenditure is recorded against them. Further to this Capital Projects with Civil works are commonly scheduled to be carried out later; in the drier summer construction season.  The Capital works budgets have been entered based on an even spread method and approach, not on a scheduled timing of works basis.

 

Roads

1,318,999

4,513,255

3,194,256

1,081,040

 

Bridges

34

429,999

429,965

143,333

 

Car Parks

344,556

499,689

155,133

63,697

 

Footpaths & Cycleways

29,470

335,455

305,985

121,124

 

Parks, Gardens & Reserves

1,234,209

1,709,379

475,170

364,207

 

Drainage

 -

35,219

35,219

6,725

 

Regional Airport & Industrial Park Infrastructure

39,879

97,545

57,666

812

 


 

7.    Proceeds From Sale of Assets

YTD proceeds from sale of assets is $103K behind budget due to delays in delivery of acquisitions.  Also, potential income from sales proceeds have been hampered by the pandemic. Aside from a significantly reduced capital replacement program in both light vehicles and heavy plant items, the existing ones that were due to be replaced have been retained in service to maintain operational requirements.

 

8.    Repayment of Capital Lease

Budget was imported quarterly effective July, October, January and April, but actuals processed so far are in July and September and based on that the final two payments are anticipated in December and March, hence budget variance is a timing difference at this time.

 

9.    Transfer to Restricted Assets

There is a YTD variance in transfers to restricted assets of $1.048M more than amended budget. Grant funding received from Federal Government for “Drought Communities Program” of $500k (attributable to CC C3223 Dunsborough Non-Potable Water Network). The funding was received in September whereas budget projected allocation was in June. It was anticipated that the expenditure would be incurred in June, hence the funding timing projections followed.

 

Developer contributions and bonds are inherently hard to predict and budget for.  An annual amount of $50K spread evenly over 12 months was budgeted, however, over $557K has been received YTD September the bulk of which are for road works bonds ($487k). Also contributing to the variance is $49K in caravan park deposits that is not budgeted for.

 

10.  Transfer from Reserves

There is a YTD variance in Transfers from Reserves of $200K less than amended budget.  The following planned expenditures, funded from reserves, had not yet occurred by the end of September:

§  $41K contribution for the tourist bureau, which has been recouped in October;

§  $15K for the purchase of a Mule for the Busselton Jetty;

§  $20K for purchase of furniture and equipment for the GLC;

§  $76K for purchase of four items of plant and equipment;

§  $11.7K relating to a transfer from the Long Service Leave reserve upon retirement of a long serving employee; and

§  $36K relating to the purchase of generators for waste services.

 

Once these purchases have been made, a subsequent recoup will be processed.

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 September 2020, the value of the City’s invested funds totalled $89.29M, up from $74.79M as at 31 August 2020.  The increase is due to the receipt of the first instalments of the annual rating period.

 


 

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) decreased by $11.5M with the funds being converted to Term Deposits during September to increase investment return.

 

The existing 11AM account was closed due a drop in interest rate from 0.2% to 0.05%.  A new 11AM account opened with an interest rate of 0.1%.

 

During the month of September three term deposits totalling the amount of $12.0M matured. Existing deposits were renewed for a further 140 days at 0.76% on average.

The official cash rate in September remains steady at 0.25%. The cash rate is expected to drop with in the near future.  This will have a strong impact on the City’s interest earnings for the foreseeable future.

Chief Executive Officer – Corporate Credit Card

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

 

Date

$ Amount

Payee

Description

3/09/2020

127.50

THE GOOD EGG CAFE BUSSELTON

CITY OF PERTH FINDINGS SEMINAR

11/09/2020

230.53

CROWN METROPOL PERTH BURSWOOD

ACCOMMODATION

18/09/2020

24.50

SANCTUARY GOLF RESORT BUNBURY

CEO MEETING –

SEND OFF MEAL

 

382.53

 

 

Statutory Environment

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

Relevant Plans and Policies

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

Financial Implications

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

Stakeholder Consultation

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

Risk Assessment

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

Options

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

CONCLUSION

Budget timings remain affected by COVID impacts and are gradually being re-aligned. As at 30 September 2020, the City’s net current position stands at $45.1M.  The City’s financial performance is considered satisfactory, and cash reserves remain strong.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

 


Council

34

25 November 2020

12.2

Attachment a

Investment Report September 2020

 


Council

51

25 November 2020

12.2

Attachment b

Financial Activity Statement September 2020

 



















Council                                                                                      53                                                          25 November 2020

12.3           Audit Committee - 13/11/2020 - CITY OF BUSSELTON 2019/2020 ANNUAL FINANCIAL REPORT, AUDITORS' REPORT AND MANAGEMENT LETTER

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

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   OAG Draft Opinion 2019-20

Attachment b    2019-20 Management Letter

Attachment c    Annual Financial Statements 2019-20 - Draft

Attachment d   OAG Opinion 2019-2020 Adopted by Committee

 

This item was considered by the Audit Committee at its meeting on 13/11/2020, the recommendations from which have been included in this report.

 

OFFICER RECOMMENDATION

That the Council:

1.    accepts the 2019/20 Annual Financial Report including Auditors Report and Audit Management Report as per the attached documentation; and

2.    notes that it has met the requirements of section 7.12A(2) of the Local Government Act 1995 with the Audit Committee, on behalf of Council, having met with a representative of the Office of the Auditor General on the 13th November 2020.

 

Council Decision and Committee Recommendation

C2011/140              Moved Councillor J Barrett-Lennard, seconded Councillor S Riccelli

That the Council:

1.         accepts the 2019/20 Annual Financial Report including Auditors Report as amended and as attached at Attachment D and Audit Management Report as per the attached documentation; and

2.         notes that it has met the requirements of section 7.12A(2) of the Local Government Act 1995 with the Audit Committee, on behalf of Council, having met with a representative of the Office of the Auditor General on the 13th November 2020.

CARRIED 9/0

En Bloc

 

Reasons:              The Auditors Report accepted by the Committee had been amended pursuant to discussions with, and the consent of, Ms Meagher, the representative of the Office of the Auditor General.


 

EXECUTIVE SUMMARY

The draft Auditors Report and Management Letter with attachment, in relation to the 2019/20 Annual Financial Statements, were received from the Office of the Auditor General on 9 November 2020, and are provided to Committee Members as attachments to this report, along with the final draft of the 2019/20 Annual Financial Statements.

 

Pursuant to its Instrument of Appointment, it is relevant that the Audit Committee considers the 2019/20 Annual Financial Statements, Auditors Report and Management Letter and where appropriate, makes recommendation/s in respect of these reports.

 

In addition, the local government is required to meet with its auditor at least once every year in accordance with section 7.12A(2) of the Local Government Act 1995 (the Act).

 

BACKGROUND

Pursuant to Section 7.9 of the Act, an Auditor is required to examine the accounts and annual financial report submitted by a local government for audit. The Auditor is also required, by 31 December following the financial year to which the accounts and report relate, to prepare a report thereon and forward a copy of that report to:

(a)       The Mayor or President

(b)      The Chief Executive Officer; and

(c)       The Minister

 

Furthermore, in accordance with Regulation 10(4) of the Local Government (Audit) Regulations 1996 (the Regulations), where it is considered appropriate to do so, the Auditor may prepare a Management Report to accompany the Auditor’s Report, which is also to be forwarded to the persons specified in Section 7.9 of the Act.

 

The Management Report provides an overview of the audit process and outcomes, whilst also identifying any matters that, whilst generally not material in relation to the overall audit of the financial report, are nonetheless considered relevant to the day to day operations of the City.

 

Representatives of the Audit Committee and City officers met with the OAG at an entrance meeting held on 28 May 2020. At this meeting, the OAG outlined the process for the annual audit.

The audit took place from 29 September to 9 October 2020. An exit meeting was held with representatives of the Audit Committee and City administration on 9 October 2020. The OAG has since provided their draft audit report, opinion 9 November 2020, which is attached to this report.

OFFICER COMMENT

The OAG have confirmed that once again the City has been provided with an unqualified audit opinion (clear audit).

 

The Audit Committee should note the following Auditor’s comments:

“Opinion

I have audited the annual financial report of the City of Busselton which comprises the Statement of Financial Position as at 30 June 2020, the Statement of Comprehensive Income by Nature or Type, Statement of Comprehensive Income by Program, Statement of Changes in Equity, Statement of Cash Flows and Rate Setting Statement for the year then ended, and notes comprising a summary of significant accounting policies and other explanatory information, and the Statement by the Chief Executive Officer.


 

In my opinion the annual financial report of the City of Busselton:

(i)        is based on proper accounts and records; and

(ii)       fairly represents, in all material respects, the results of the operations of the City for the year ended 30 June 2020 and its financial position at the end of that period in accordance with the Local Government Act 1995 (the Act) and, to the extent that they are not inconsistent with the Act, Australian Accounting Standards.”

 

and

 

“Emphasis of Matter – Basis of Accounting

I draw attention to Note 1 and 11 to the financial report, which describes the basis for accounting. The financial report has been prepared for the purpose of fulfilling the City’s financial reporting responsibilities under the Act. Regulation 17A of the Local Government (Financial Management) Regulations 1996 (Regulations), requires a local government to measure vested improvements at fair value and the associated vested land at zero cost. This is a departure from AASB 16 Leases which would have required the entity to measure the vested improvements also at zero cost. My opinion is not modified in respect of this matter.

 

I draw attention to Note 1 and 11 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the City’s financial reporting responsibilities under the Act. In respect of the comparatives for the previous year ended 30 June 2019, Regulation 16 of the Local Government (Financial Management) Regulations 1996 (Regulations), did not allow a local government to recognise some categories of land, including land under roads, as assets in the financial report. My opinion is not modified in respect of this matter.

 

The Auditor’s Management Report provides an overview of the approach undertaken in respect of the annual audit process, and the associated outcomes of the audit.”

 

and

 

“Report on Other Legal and Regulatory Requirements

In accordance with the Local Government (Audit) Regulations 1996 I report that:

(i)        In my opinion, the following material matters indicate significant adverse trends in the financial position of the City:

a.        The Current Ratio as reported in Note 33 of the annual financial report is below the Department of Local Government, Sport and Cultural Industries (DLGSCI‘s standard of 1.0 for the last three financial years; and

b.        The Operating Surplus Ratio as reported in Note 33 of the annual financial report is below the DLGSCI’s basic standard of 0.01 for the last three financial years.

(ii)       All required information and explanations were obtained by me.

(iii)      All audit procedures were satisfactorily completed.

(iv)      In my opinion, the Asset Consumption Ratio and the Asset Renewal Funding Ratio included in the annual financial report were supported by verifiable information and reasonable assumptions.”

 

The Management Report also identifies any findings that, whilst not material in relation to the overall audit of the financial report, are considered relevant to the day to day operations of the City.


 

As part of the 2019/20 Financial Audit, the Auditor made one finding, deemed as moderate. Full details and City of Busselton Management comments can be seen in the 2019-20 Management Letter attachment:

“1.  Remote Access

Finding

We found that systems can be accessed remotely without the use of a Virtual Private Network (VPN) connection or multi factor authentication. 

 

The system is currently accessed by the majority of staff remotely via Remote Desktop Protocol (RDP), through a Remote Desktop Gateway with an SSL certificate installed.

 

Whilst this is an acceptable method of accessing the system remotely, it could be further strengthened through the use of multi factor authentication.

 

In addition, whilst the remote access server records remote logins and unsuccessful login attempts, there is no evidence that these are reviewed.”

 

Section 2.2(c) of the Audit Committee Terms of Reference determines that the Audit Committee is responsible and has the duty to formally meet with the auditor in accordance with the Act on behalf of the local government. Ms. Carly Meagher, Director Financial Audit, from the OAG, who is representing the Auditor General is attending the Audit Committee meeting. Ms. Meagher will present the audit report and respond to any queries arising from the 2019/20 Audit.

The presence of Ms. Meagher meets the requirements of 7.12A(2) of the Act.

Statutory Environment

Matters pertaining to the financial audit of a local government authority are detailed within:

§  Local Government Act 1995 - Section 7.9 and Section 7.12A.

§  Local Government (Financial Management) Regulations 1996.

§  Local Government (Audit) Regulations 1996 – Regulation 16

 

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.

 

There is a requirement to include the audited financial statements within the City of Busselton Annual Report, which will be advertised to the public following its consideration by Council.

Risk Assessment

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

Options

The Audit Committee may determine to make specific recommendations in relation to the audit findings and the actions identified by management in addressing these.  Given the nature of the issue that arose and the fact that this will need to be managed operationally by the City’s Information Services team, with actions already proposed or underway, officers do not think specific resolutions are necessary.

CONCLUSION

The City achieved a clear audit for the financial year ending 30 June 2020 with only one (1) finding reported in the Management Report.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

 


Council

61

25 November 2020

12.3

Attachment a

OAG Draft Opinion 2019-20

 





Council

63

25 November 2020

12.3

Attachment b

2019-20 Management Letter

 



Council

81

25 November 2020

12.3

Attachment c

Annual Financial Statements 2019-20 - Draft

 












































































Council

141

25 November 2020

12.3

Attachment d

OAG Opinion 2019-2020 Adopted by Committee

 



 


Council                                                                                      142                                                       25 November 2020

16.2           ST JOHN AMBULANCE OF WESTERN AUSTRALIA LIMITED LEASE

STRATEGIC GOAL

1. COMMUNITY: Welcoming, friendly, healthy

STRATEGIC OBJECTIVE

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

SUBJECT INDEX

Leases

BUSINESS UNIT

Corporate Services

REPORTING OFFICER

Property Management Officer - Julie Oates

Property Management Coordinator - Sharon Woodford-Jones

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

Simple Majority

ATTACHMENTS

Attachment a   Premises Plan  

 

Council Decision and Officer Recommendation

C2011/141              Moved Councillor J Barrett-Lennard, seconded Councillor S Riccelli

The Council resolves to enter into a lease, subject to the consent of the Minister for Lands, with St. John Ambulance Western Australia Ltd. for a portion of Lot 502 on Deposited Plan 65896, Volume LR3025, Folio 688, H29 Marri Drive, Dunsborough, as shown hatched on Attachment A on the following terms:

a)         The term of the lease to be 21 years;

b)        The rent to commence at $230.00 inclusive of GST per annum and increased by $5.00 on each anniversary but exclusive of outgoings;

c)         The lessee will be fully responsible for the maintenance of the buildings and leased area;

d)        All costs associated with the preparation of the lease are to be met by the lessee;

e)        The lease will contain provisions dealing with the shared access easement between lots 501 and 502; and

f)         Other terms to be consistent with the City’s standard community group lease.

CARRIED 9/0

En Bloc

 

EXECUTIVE SUMMARY

St John Ambulance Western Australia Ltd (St Johns) currently occupy a building on Lot 502 Marri Drive, Dunsborough, under the holding over provisions of their recently expired lease. St Johns would like to enter into a new lease of these premises for a period of 21 years. As the provider of an essential service to the district, City officers are supportive of their request. The purpose of this report therefore is to seek Council approval for this lease on the terms and conditions outlined. 

 

BACKGROUND

Reserve 28683 in Dunsborough is bounded by Cape Naturaliste Road, Naturaliste Terrace and Marri Drive, Dunsborough. The reserve is largely undisturbed and is densely vegetated, however there is a small portion of the reserve which is used for community services. The development of the St Johns and Department of Fire and Emergency Services (DFES) stations on a portion of the reserve occurred over 20 years ago. Both stations are located adjacent to each other, separated by a shared access way. 

In 1999, Council resolved (C992/0069) to enter into a 21-year lease with St Johns prior to providing building consent for their new building. In 2014, due to some concerns raised by the community with regard to the protection of the remainder of the reserve, Council resolved (C1412/317) to excise the portion of land utilised by both St Johns and DFES from the reserve for the permitted purpose of “Community and Cultural Centre & Recreation”. In May 2015, Lots 501 and 502 Marri Drive, Dunsborough, were created and a management order was issued to the City with power to lease for a term no longer than 21 years.

OFFICER COMMENT

St Johns perform critical roles in coordinating emergency services in our community. The centralised location of their premises is valuable when responding to services in the Dunsborough district. Entering into a long term arrangement will secure the provision of this service and facilitate future investment in the amenity.

 

The plan attached shows the area occupied by St Johns within the reserve. Included on the title to the land is an easement to protect the shared accessway which services both lots. The lease will contain appropriate provisions associated with the easement such as the need to keep the accessway clear and maintained to a reasonable standard.

 

Some time ago, St Johns changed their name from St John Ambulance Association in Western Australia Inc. to St John Ambulance Western Australia Ltd. Despite the change of name, they remain a registered charity and not-for-profit organisation, providing benevolent services to the community.

 

The policy of Council in recent years has been to grant leases to not-for-profit entities for a period of no more than 10 years. Leases to State Government agencies or organisations that provide essential services have generally been granted a longer term that is reflective of the nature of the service and facilities that these organisations provide. The Lessee in such circumstances will generally take full responsibility under the lease for the construction and ongoing maintenance of the facility and associated outgoings and other costs. Having constructed their own facility and been in this location for some time, City Officers consider that the purpose and activities of St Johns are within the category of Lessees contemplated by this approach and that a term of 21 years is appropriate long term tenure for the preservation of the service.

 

City officers are working with DFES in relation to a new lease over the adjoining lot and the means by which shared tenure of the building with the local bush fire brigade can be achieved. Whilst it would have been preferable to enter into a lease simultaneously with DFES, there is no compelling requirement to do so, whereas St Johns are keen to proceed with their renewal before embarking on improvements to the facility. The DFES lease will therefore be the subject of a future report to Council. 

Statutory Environment

When disposing of property whether by sale, lease or other means, a local government is bound by the requirements of section 3.58 of the Local Government Act 1995. There are exemptions to this process under Regulation 30(2)(b)(i) and (ii) of the Local Government (Functions & General) Regulations which states “disposal of land to incorporated bodies with objects of benevolent, cultural, educational or similar nature and the member of which are not enlisted to receive any pecuniary profit from the body’s transactions, are exempt from the advertising and tender requirements of section 3.58 of the Local Government Act”. The constitution of St. Johns is such that this exemption applies.

Relevant Plans and Policies

·        Management Plan for Marri Reserve (28683), prepared by Green Iguana (Environmental Consultants) adopted August 2004. The proposed lease does not conflict with the Management Plan.

·        The recommendation to enter into a lease with St Johns is consistent with the principles of Council Policy entitled ‘Leasing of City Premises’, adopted 13 May 2020.

Financial Implications

There are no financial implications associated with entering into a lease with St Johns as the City’s standard lease is on a full maintaining and repairing basis which includes the payment of outgoings including services and insurance. 

The rent applied to community and sporting groups leasing City owned or managed land is currently $230.00 per annum increased by $5.00 on each anniversary (all amounts are inclusive of GST). It is proposed that this annual rent be charged to the St Johns. 

Stakeholder Consultation

As St Johns have been operating on this site for a number of years and this recommendation relates to formalisation of their occupation, no wider stakeholder consultation has been considered necessary. St Johns have been provided with a copy of the lease and have confirmed they are in agreement with the provisions of the same.

Risk Assessment

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

Options

As an alternative to the proposed recommendation, the Council could resolve to vary the term of the lease.

CONCLUSION

The presence of St Johns in this locality provides a valuable service to the community. St Johns have been compliant Lessees in relation to their obligations under the existing lease. It is therefore recommended that Council enter into a lease with St Johns on the terms and conditions outlined in this report. 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

It is anticipated that signing of the lease agreement would be on or before 26 February 2021.


Council

145

25 November 2020

16.2

Attachment a

Premises Plan

 

 


Council                                                                                      146                                                       25 November 2020

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

 

Council Decision and Officer Recommendation

C2011/142              Moved Councillor J Barrett-Lennard, seconded Councillor S Riccelli

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

17.1.1    Current Active Tenders

 

17.1.2    Donations, Contributions and Subsidies Fund – October 2020

CARRIED 9/0

En Bloc

 

EXECUTIVE SUMMARY

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

 

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

INFORMATION BULLETIN

17.1.1       Current Active Tenders

 

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

 

RFT03/20 CONSTRUCTION OF BORE(S) – DUNSBOROUGH NON-POTABLE WATER PROJECT

Requirement – to engage an adequately skilled and experienced Contractor to:

a)        construct, test and equip exploration, production and/or monitoring bore(s) on Mewitt Road, Quindalup (defined in the Request for Tender as the Bore Site) as part of the City’s Dunsborough Non-Potable Water Network Project;

b)        comply with DWER requirements in relation to a Hydrogeological Assessment Report for these bores (as specified in the Drilling Licence); and

c)         if required, provide the City with a report on the beneficial use (availability, volume, quality and sustainability) of groundwater available for extraction from this bore(s).

·        A Request for Tender was advertised on 18 July 2020 with a closing date of 20 August 2020.  The closing date was extended to 25 August 2020.

·        Two submissions were received and have been evaluated.

·        The value of the contract exceeded the CEO’s current delegated authority under Delegation DA 1-07.

·        A recommendation was made to Council at the 14 October 2020 Council Meeting to:

o   accept the tender from Delmoss Nominees Pty Ltd T/A Welldrill as being the most advantageous tender to the City subject to minor variations to be negotiated in accordance with regulation 20 of the Local Government (Functions and General) Regulations 1996 (FG Regs); and

o   Delegate power and authority to the CEO to negotiate and agree with the successful tenderer minor variations in accordance with Regulation 20 of the FG Regs, subject to such variations and the final terms not exceeding the overall project budget.

·    The City has subsequently entered into a contract with Delmoss Nominees Pty Ltd T/A Welldrill for supply of these goods/services.

 

EOI02/20 CONSTRUCTION OF BUSSELTON PERFORMING ARTS AND CONVENTION CENTRE

Requirement – the construction of the Busselton Performing Arts and Convention Centre.

 

·        An Expression of Interest was advertised on 11 July 2020 with a closing date of 11 August 2020.

·        Seven submissions were received.

·        The CEO under delegation has shortlisted all seven respondents as acceptable tenderers. 

·        The original timeframe for issuing the Request for Tender to the shortlisted tenderers was December 2020, but has since been revised to the first quarter of 2021.

 

PQS05/20 BUSSELTON CBD PAVING UPGRADE

Requirement – the provision of goods and services relating to the installation of large format paving within the Busselton CBD at various locations, to be completed in stages. 

 

·        A Request for Applications to Join a Panel of Pre-Qualified Suppliers was advertised on 26 August 2020 with a closing date of 10 September 2020. 

·        Two submissions were received.

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

·        The CEO approved a recommendation to establish a panel consisting of two pre-qualified suppliers, namely Paving Solutions (WA) Pty Ltd and Artisan Group (WA) Pty Ltd.

·        The City has since entered into the following contracts:

¾      Stage 1A Works – Paving Solutions (WA) Pty Ltd

¾      Stage 1B Works - Artisan Group (WA) Pty Ltd


 

17.1.2       Donations, Contributions and Subsidies Fund – October 2020

 

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

 

Nine applications were approved in October, totalling $3,300, as outlined in the table below:

 

Recipient

Purpose

Amount

Radiance Network South West

Radiance South West are seeking assistance to fund the 4th Radiance Festival and Big Pram Walk being held during Peri Natal and Infant Health Awareness Week on Sunday 15 November at Signal Park with free family entertainment, parent education & more.
Donation requested to cover the cost of speakers, PA and mic required for the event.

$500.00

Busselton Woodturners

Hosting a woodturners workshop for the WA Woodturning Association. The workshop will be open to the community and attract many visitors to Busselton. Funds requested to cover the cost to hire the Churchill Park Hall.

$600.00

Geographe Primary School

Donation requested as a contribution towards year 6 graduation book awards.

$100.00

Lion's Club of Vasse

Funds requested as a contribution towards sound and lighting expenses associated with organising Carols by Candlelight being held at the Vasse Nature Playground on 19 December.

$600.00

Vasse PS

Donation requested as a contribution towards year 6 graduation book awards

$100.00

Busselton Art Society

62nd Art in the Park is being held in Mitchell Park from 22 to 25 January 2021. Funds requested to assist with advertising related expenses.

$500.00

Otis North

Selected to represent WA & compete in the Australian Online National Junior Championships Oct - Dec 2020. Funds to assist with cost of coaching and videography.

$300.00

Remy North

Selected to represent WA & compete in the Australian Online National Junior Championships Oct - Dec 2020. Funds to assist with cost of coaching and videography.

$300.00

Ashley Spencer

Selected to represent WA & compete in the Australian Online National Junior Championships Oct - Dec 2020. Funds to assist with cost of coaching and videography.

$300.00

 

October total

 $3,300.00

 


Council                                                                                      149                                                       25 November 2020

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

16.1           PARKING LOCAL LAW

STRATEGIC GOAL

6. LEADERSHIP Visionary, collaborative, accountable

STRATEGIC OBJECTIVE

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

SUBJECT INDEX

Local Laws

BUSINESS UNIT

Corporate Services

REPORTING OFFICER

Legal Officer - Briony McGinty

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   Proposed Parking Local Law  

 

Council Decision and Officer Recommendation

C2011/143              Moved Deputy Mayor K Hick, seconded Councillor P Cronin

That the Council:

1.         Resolves to make the City of Busselton Parking Local Law 2020 in accordance with section 3.12(4) of the Local Government Act 1995.

2.         Authorises the Chief Executive Officer to carry out the processes required to make the City of Busselton Parking Local Law 2020 in accordance with section 3.12(5) and section 3.12(6) of the Local Government Act 1995.

CARRIED 9/0

BY ABSOLUTE MAJORITY

 

EXECUTIVE SUMMARY

The Local Government Act 1995 (the Act) requires that local laws be reviewed every eight (8) years. The City’s Shire of Busselton Parking Local Law (Current Local Law) was gazetted in 2011 and is due for review. The City has prepared an updated version which incorporates recent legislative changes impacting on the local law, as well as updating infringement penalties which have not been amended for nearly nine (9) years.

 

Council previously resolved to authorise the preparation and advertising of the proposed City of Busselton Parking Local Law 2020 (Proposed Local Law). The purpose of this report is for Council to consider submissions received in relation to the Proposed Local Law and to consider whether to make the Proposed Local Law pursuant to Section 3.12 of the Act.

 

It is recommended that Council resolve to make the Proposed Local Law.

 

BACKGROUND

Council resolved at its meeting on 12 August 2020:

That the Council:

1)         Commences the law-making process for the City of Busselton Parking Local Law 2020 inclusive of Committee amendments as per Attachment C, the purpose and effect of the local law being as follows:


 

Purpose: To regulate and control the movement and parking of vehicles throughout the district.

Effect: To provide a well-regulated parking environment for all persons in the district.

 

2)         Authorises the CEO to carry out the law-making procedure under section 3.12(3) of the Local Government Act 1995, by:

(a)      Giving Statewide public notice and local public notice of the Parking Local Law inclusive of Committee amendments as per Attachment C; and

(b)      Giving a copy of the Parking Local Law inclusive of Committee amendments as per Attachment C and public notice to the Minister for Local Government.

3)         Directs the CEO, after the close of the public consultation period, to submit a report to the Council on any submissions received on the Parking Local Law to enable the Council to consider the submissions made and to determine whether to make the local law in accordance with section 3.12(4) of the Local Government Act 1995.

 

Pursuant to the abovementioned Council resolution, the Proposed Local Law was advertised for public comment and a copy given to the Minister for Local Government. No public submissions have been received. The response from the Department of Local Government, Sport and Cultural Industries (DLG) is discussed under the Officer Comment section of this report.

OFFICER COMMENT

The advice and comments received from the DLG have resulted in changes being made to the original version of the local law which was presented to Council at its 12 August 2020 meeting. The Proposed Local Law (as amended) is now referred back to Council to consider whether or not to make the Proposed Local Law.

 

The DLG made a number of minor editing suggestions which have been incorporated into the Proposed Local Law and can be seen in the mark-ups.

 

The DLG also suggested one substantive change which relates to clause 2.1 and the ability to determine parking requirements under delegation. Both the City’s Current Local Law and the version of the Proposed Local Law presented to Council on 12 August 2020 were both drafted in such a fashion as to allow the determination of parking requirements by Council, or under delegation. There is currently a delegation in place to the CEO which allows amendments to the Consolidated Parking Scheme to be determined by the CEO, subject to various information and call-in provisions.  

 

The DLG advice is that clause 2.1:

“represents a “determination device” since it allows a mechanism for the City to change how the local law applies to certain streets and areas.

The Joint Standing Committee on Delegated Legislation (JSC) is reluctant to allow the use of determination devices, since they allow the local law to change without using the process in section 3.12 of the Local Government Act 1995.

While the Committee has allowed them in parking local laws, this is subject to the condition that the decision not be delegable. Accordingly, it is suggested that clause 2.1(1) be amended by changing “Council may constitute” to “Council may by resolution constitute”. This will make it clear that the decision must be made by a Council resolution and cannot be made via a delegation to City staff.”

 

Previous public reports by the JSC dating back to 2006 have raised this issue. The DLG also advised that the JSC have recently required undertakings from local governments who have attempted to make clause 2.1 delegable. It appears that the clause under which the City has been operating for the past 9 years may have “slipped through” the review mechanism of the JSC at the time of its gazettal, allowing for such decisions to be delegable.

 

If the ability to make determinations under clause 2.1 is not delegable, City staff will be required to present a report to Council to resolve to amend the Parking Scheme when necessary. Although there will be some increase in administrative burden, this can be accommodated within current processes and resources. City staff already draft memos to the CEO to amend the Parking Scheme and this will now be done in the form of a Council report.

 

There is the option to not make the change as suggested by the DLG. However, their advice clearly suggests that these types of clause are unacceptable to the JSC. Once gazetted and reviewed by the JSC it is highly likely that the JSC will require the City to undertake not to use the power of delegation until such time as the local law is amended to include the words “by resolution”. This would require an amendment local law. The process for amending a local law is the same as for creating a new local law and is resource intensive. Failure to comply with a request from the JSC will likely result in the local law being disallowed.

 

For these reasons, it is recommended that the City make the change as suggested by the DLG.

Statutory Environment

Section 3.5 of the Act provides Council with the head of power for making a parking local law.

 

The procedure for making local laws is set out in section 3.12 of the Act and Regulation 3 of the Local Government (Functions and General) Regulations 1996. Under section 3.12(4) of the Act, Council is to consider any submissions made and may make the local law as proposed or make a local law that is not significantly different from what was originally proposed. A decision to make a local law has to be supported by an absolute majority of Council. 

 

If Council resolves to make the Proposed Local Law then the process required under section 3.12(5) and (6) of the Act needs to be carried out. Section 3.12(5) requires that the local law be published in the Government Gazette and a copy be provided to the Minister for Local Government. Section 3.12(6) requires that after the local law has been published in the Government Gazette, the City must give local public notice stating the title of the local law, summarising the purpose and effect of the local law and advising that the local law is published on the City’s official website, and that copies of the local law may be inspected at or obtained from the City offices.

 

In accordance with section 3.14 of the Act the local law will come into operation on the 14th day after publication in the Government Gazette.

Parliamentary Scrutiny

Section 42 of the Interpretation Act 1984 allows the WA State Parliament to disallow a local law, which is a mechanism to guard against the making of subsidiary legislation that is not authorised or contemplated by the empowering enactment, has an adverse effect on existing rights or ousts or modifies the rules of fairness. Parliament has appointed the Joint Standing Committee on Delegated Legislation (JSC) which is a committee of State politicians from both houses of the Western Australian Parliament, to undertake an overseeing role on its behalf, which includes the power to scrutinise and recommend the disallowance of local laws to the Parliament. After gazettal, a copy of the Parking Local Law will be sent to the JSC who will examine the local law and determine whether or not it complies with the abovementioned criteria.

Relevant Plans and Policies

The City of Busselton Consolidated Parking Scheme determines parking stalls, parking stations and parking areas created under the Current Local Law. Where a sign has been erected to give effect to a determination under the Current Local Law, it will be deemed to have been erected by the local government under the Proposed Local Law and will continue to have effect.

Financial Implications

Costs associated with the advertising and gazettal of the Parking Local Law will come from the legal budget. These costs are unlikely to exceed $2,000.

 

In terms of the increase in modified penalties, the City is unlikely to see any significant increase in income, given the City’s approach to its regulatory functions. Proposed increases are minor and based on a review of the City’s existing amounts and a comparison of other southwest local governments.

 

Making and implementing the Parking Local Law should not have any other financial implications for the City.

Stakeholder Consultation

The Proposed Local Law was advertised publicly for a minimum of six weeks in accordance with the requirements under section 3.12(3)(a) of the Act. No public submissions have been received.

 

In accordance with section 3.12(3)(b) of the Act, a copy of the Proposed Local Law was forwarded for consideration and comment to the Minister for Local Government. The DLG responded on behalf of its Minister and suggested changes to the Proposed Local Law, discussed under Officer Comment above.

Risk Assessment

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

Options

As an alternative to the proposed recommendation, the Council could choose to vary the provisions of the Proposed Local Law in any number of ways. However, for the reasons outlined in this report, the Proposed Local Law is the form of local law recommended.

 

If any changes are made which are of a significant nature the Proposed Local Law would need to be re-advertised.

CONCLUSION

The Current Local Law requires review. The Proposed Local Law has been prepared in line with current needs, expectations and operational requirements. It has been advertised publicly in accordance with the Act. Only changes required to make the local law acceptable to the JSC (and some minor edits) have been recommended following advertising. It is recommended that Council resolve to make the Proposed Local Law.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Should Council resolve to make the Proposed Local Law it will need to be gazetted and will come into operation on the 14th day after publication in the government gazette. The timeframe for completion of the gazettal process is approximately thirty days from the date of the Council resolution.


Council

180

25 November 2020

16.1

Attachment a

Proposed Parking Local Law

 




























 


Council                                                                                      185                                                       25 November 2020

ITEMS FOR DEBATE

13.1           PROPOSED MODIFIED BUSSELTON FORESHORE STRUCTURE PLAN - CONSIDERATION FOR ADOPTION FOR ADVERTISING

STRATEGIC GOAL

2. PLACE AND SPACES Vibrant, attractive, affordable

STRATEGIC OBJECTIVE

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

SUBJECT INDEX

Structure Plans

BUSINESS UNIT

Strategic Planning

REPORTING OFFICER

Principal Strategic Planner - Louise Koroveshi

AUTHORISING OFFICER

Director, Planning and Development Services - Paul Needham

NATURE OF DECISION

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

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Endorsed Busselton Foreshore Structure Plan

Attachment b    Busselton Foreshore Master Plan

Attachment c    Proposed Busselton Foreshore Structure Plan

Attachment d   Car Parking Utilisation and Turnover Survey

Attachment e    Marine Terrace Precinct  

 

OFFICER RECOMMENDATION

That the Council adopts the proposed Busselton Foreshore Structure Plan depicted at Attachment C for public consultation, pursuant to Part 4 of the Deemed Provisions (Schedule 2) of the Planning and Development (Local Planning Schemes) Regulations 2015.

 

Council Decision and AMENDED Recommendation

C2011/144              Moved Councillor L Miles, seconded Councillor R Paine

That the Council adopts the proposed Busselton Foreshore Structure Plan depicted at Attachment C for public consultation, subject to the proposed ‘Marine Terrace’ Precinct being renamed ‘Old Tennis Club’ Precinct, pursuant to Part 4 of the Deemed Provisions (Schedule 2) of the Planning and Development (Local Planning Schemes) Regulations 2015.

CARRIED 9/0

 

Reasons:              A key focus of the proposed Marine Terrace precinct is to allow flexibility to consider land uses that might encourage commercial use and/or re-purposing of the former Tennis Club building and its immediate curtilage over time. Naming the precinct ‘Marine Terrace’ might, misleadingly, suggest a far greater land area than that being proposed.

 

EXECUTIVE SUMMARY

The Council is requested to consider adopting for advertising proposed modifications to the endorsed Busselton Foreshore Structure Plan.

 

The proposed modifications include: presentation of the Structure Plan in a format consistent with the Planning and Development (Local Planning Schemes) Regulations 2015; allowing for consideration of additional land uses in some existing precincts; identifying a new ‘Marine Terrace Precinct’ focused on the former Busselton Tennis Club building; and reviewing car parking requirements. 

 

 

Officers are recommending that the proposed Busselton Foreshore Structure Plan is adopted for community consultation and referral to government agencies for comment. After consultation the proposal would be brought back for further Council consideration and the making of a recommendation to the Western Australian Planning Commission (WAPC).

 

BACKGROUND

The proposal comprises modifications to the endorsed Busselton Foreshore Structure Plan (Attachment A). The Structure Plan area is zoned ‘Special Use 3 Busselton Foreshore’ (SU3) and is within ‘Special Provision Area 44’, pursuant to Local Planning Scheme 21 (LPS21). Land uses within SU3 are guided by the Busselton Foreshore Structure Plan and include recreational, community, commercial, retail and entertainment activities, as well as thoroughfares and parking areas.

 

The Busselton Foreshore Precinct has been extensively redeveloped over the last 10 years including: key infrastructure items (e.g. roads, public car parking and coastal protection structures); community facilities (e.g. Youth and Community Activities Building, Railway House, skate park, playgrounds, sporting fields, tennis club relocation and grassed picnic/BBQ areas); and commercial development (kiosks and microbrewery). Redevelopment works undertaken to date have reflected the community vision established through the formulation of the Busselton Foreshore Master Plan (Attachment B).

 

As an important means of implementing the Busselton Foreshore Master Plan, the Busselton Foreshore Development Guide Plan was adopted by the Council (and subsequently by the WA Planning Commission) in 2012. Amendments were subsequently made and the plan adopted as a Structure Plan in 2016, in accordance with the Planning and Development (Local Planning Schemes) Regulations 2015 (Regulations).

 

The review of the Structure Plan is a response to matters associated with two development applications within the Foreshore Precinct. In March 2020, the City approved the proposed change of use of the former Busselton Tennis Club building from ‘Club Premises’ to ‘Educational Establishment’. The approval reflected existing lease arrangements between the City and the Bunbury Regional College. 

 

In April 2020, the Southern JDAP granted approval to the proposed development of a hotel on Lot 503 Foreshore Parade, Busselton. Of relevance to consideration of proposed modifications to the Structure Plan, the City has determined, in consultation with the hotel proponent, that a dedicated hotel car park comprising 30 parking bays (based on the size of the hotel - 110 rooms) be situated adjacent to an existing, larger public car parking area. A hotel in a regional location does require some dedicated parking for guests, however allowing numerous private car parks for specific development sites within the Foreshore Precinct would not be the best outcome. The City has various potential options in relation to parking should the need arise, including parking management and overflow parking areas. Planning of the Foreshore has generally been undertaken on the basis of an integrated, rather than site-by-site basis, but the Southern JDAP had some difficulty with fully understanding that in the context of the planning framework. Changes are proposed to address that issue, and better support that integrated approach.

 

It is also a timely opportunity to reformat the Structure Plan in accordance with the Regulations and further refine land use permissibilities and development standards to provide flexibility and opportunities to attract further activity, as well as to consolidate vibrancy and connectivity between attractions within and adjacent to the Foreshore Precinct, especially the Cultural Precinct and the Busselton City Centre. 

 


 

The Proposal

The proposed modifications to the Busselton Foreshore Structure Plan are described in greater detail below:

1.         In relation to the Structure Plan Provisions:

a.         Amend Provision No.2 by removing the reference to, and definition of, ‘Exhibition Centre’ as the land use term and definition are set out under Division 2 of ‘Schedule 1 – Interpretations’ of LPS21.

b.        Amend Provision No.5 Car Parking Requirements so that it reads as follows: “Car parking requirements shall be assessed on a case-by-case basis. The City shall manage car parking across the Structure Plan area”.

c.         Remove Provision No’s. 8 and 9 that relate to requirements for an ‘Irrigation and Fertiliser Management Plan’ and a ‘Stormwater and Groundwater Management Plan’ as these documents have been prepared and are being implemented as part of ongoing development.

d.        Remove Provision No.10 as controls relating to liquor licensing can be effectively managed through planning approvals and liquor licensing regulations.

 

2.         In relation to Table 1 – Land Use Permissibility:

a.         In the Queen Street precinct include ‘Tavern’, ‘Small Bar’ and ‘Reception Centre’.

b.        In the Busselton Jetty precinct include ‘Small Bar’ and ‘Reception Centre’.

c.         In the Short Stay Accommodation precinct include ‘Guesthouse’, ‘Small Bar’ and ‘Reception Centre’.

d.        Include a new ‘Marine Terrace Precinct’ focused on the former Busselton Tennis Club building and allow for consideration of the following uses in addition to the current educational use: ‘Restaurant/Café’, ‘Shop’, ‘Tavern’, ‘Small Bar’, ‘Exhibition Centre’, ‘Amusement Parlour’ and ‘Cinema/Theatre’.

 

3.         In relation to Table 2 – Building Height and Floor Area for Development Locations: include development standards for the proposed Marine Terrace Precinct.

 

The proposed modified Busselton Foreshore Structure Plan is provided at Attachment C.

 

Busselton City Centre Parking Utilisation and Turnover Survey

Of relevance to the consideration of proposed changes to the Busselton Foreshore Structure Plan are the findings of the Car Parking Utilisation and Turnover Survey (Attachment D) commissioned by the City to support the preparation of an Activity Centre Plan for the Busselton City Centre (the Dunsborough Town Centre was also included in the study but is not discussed in this report).

 

The purpose of the survey, together with a current and projected future needs analysis of (public and private) car parking, was to assess the performance of the City’s existing car parking management arrangements and also identify specific areas of under and over supply within the Busselton City Centre. The survey area included car parks and parking zones within the Busselton City Centre, as well as those within the Busselton Foreshore Precinct, the Geographe Bay Road car park to the west of the Foreshore Precinct and the Barnard Park carpark on Brown Street.

 

The survey was undertaken on two separate days between the hours of 6.00am – 10.00pm on:

 

·        Wednesday 4 December 2019 – being a normal ‘non-peak’ day; and

·        Tuesday 7 January 2020 – being a seasonal ‘peak’ day.

 


 

Licence Plate Recognition technology was used to collect data on the respective survey days, which included average parking turnover (cars/space), average duration of stay (hours/car) and maximum duration of stay (hours/car) to determine overall utilisation. For the main car parking areas within the Busselton Foreshore Structure Plan area, the survey determined the following peak and non-peak utilisation:

 

·        Carpark 1 (Equinox/foreshore) peak 87%, non-peak 80%

·        Carpark 2 (Queen Street/Foreshore Parade) peak 81%, non–peak 74%

·        Carpark 3 (former tennis club building/Jetty Way west) peak 54%, non-peak 49%

·        Carpark 4 (The Goose/Foreshore Parade north & south) peak 77%, non-peak 78%

 

The survey concluded that the Busselton City Centre and the Busselton Foreshore Precinct do not have a shortage of parking supply. A maximum parking occupancy percentage of 52% (1960 vehicles across 3774 parking supply) was observed during the non-peak survey compared with 56% (2127 vehicles across 3774 parking supply) observed during the peak survey. The highest average amount of time that cars occupied parking bays was less than 1 hour, with the second highest occupancy time being between 1 to 2 hours.

 

The survey also found that there is sufficient existing parking capacity to accommodate projected demand forecast for the next twenty years which supports assumptions in regard to likely Busselton Performing Arts and Cultural Centre (BPACC) parking demand. Furthermore, this indicates little impetus at this stage to construct car parking on the City’s land at Harris Road (i.e. the former ‘Donga City’ site, originally acquired as a strategic land supply to meet future parking needs).

OFFICER COMMENT

Modifications to the Busselton Foreshore Structure Plan relate to making: format and presentation consistent with the Regulations; review of provisions to remove those that are redundant (as requirements have been completed or are dealt with under separate legislation); additional land uses for some existing precincts; a new ‘Marine Terrace Precinct’; and review of current and future car parking requirements.

 

The first two matters are essentially administrative. The proposed changes in regard to additional land uses, a new ‘Marine Terrace Precinct’ and ongoing car parking requirements are discussed below under appropriate subheadings.

 

Land Uses

Additions to land uses currently contemplated by the endorsed Structure Plan for the Queen Street, Busselton Jetty and Short Stay Accommodation precincts essentially reflect existing activities. The Goose and the Equinox restaurants each have a small bar component and there is little doubt that the recently approved Hilton Hotel will also seek to have a licensed premises, especially if it is to operate a restaurant. Restaurants, taverns and hotels can host functions in the same manner as premises defined as ‘Reception Centre’ under LPS21. The microbrewery is defined as a ‘Tavern’ and, like hotels and restaurants, is licenced under the Liquor Control Act 1988. Liquor licences for restaurants, taverns and hotels can be restricted under the Act, as can these for a ‘Small Bar’ (this land use was introduced into LPS21 by Amendment 29 gazetted in June 2019).

 

The endorsed Structure Plan restricts the location of certain land uses such as Restaurant/Café and Tavern and does not include ‘Small Bar’, ‘Guesthouse’ or ‘Reception Centre’. From a planning perspective such land uses reflect attractive development that is currently occurring.  They also provide for future development flexibility for existing restaurants and other land uses that may be developed (there is an undeveloped restaurant/cafe site in the Queen Street Precinct). ‘Guesthouse’ provides an additional option in the Short Stay Accommodation precinct.

 

Land use and liquor licensing definitions under LPS21 and the Liquor Control Act 1988 are closely aligned. From a planning perspective, there is no compelling reason to close off the option for a restaurant to operate as a tavern at some point in the future, the only differences being increased patron capacity (which would be determined through the development application process), and the ability to sell packaged liquor, subject to discretion and lease conditions.

 

Marine Terrace Precinct

The former Busselton Tennis Club building on Lot 488 Marine Terrace (Attachment E) is the closest building within the Busselton Foreshore Precinct to the Cultural Precinct and occupies a prime location given its proximity to the planned BPACC at the northern end of Queen Street. Lot 488 and the club building are currently leased by the City to the Bunbury Regional College for educational purposes. Whilst this is a worthwhile and beneficial use, there is seen to be merit in the identification of a new precinct focused on the former Busselton Tennis Club building that would allow for consideration of other commercial uses, particularly ones that would provide activation and interest for this part of the Foreshore Precinct that is currently underutilised, and help to better integrate the Foreshore and City Centre over time.

 

Land uses proposed for consideration within a new Marine Terrace Precinct include café/restaurant, small bar, shop, tavern, exhibition centre, amusement parlour and cinema/theatre. The precinct could facilitate future pedestrian connectivity between attractions elsewhere within the Foreshore Precinct (as well as those in the Cultural Precinct and the Busselton City Centre) given that the proposed land uses would provide for pedestrian focused activity. Development standards proposed for the new precinct would allow reasonable expansion of the building’s floor area and perhaps a new building in time (Lot 488 is approximately 700m2 in area).

 

Car Parking

It is proposed to amend the Structure Plan to allow assessment and determination of car parking requirements on a case-by-case basis. This reflects the strategic and holistic approach that the City has formulated and implemented since the adoption of the Busselton Foreshore Master Plan and recognises that the City is best placed to determine such matters as it is the land manager for the Foreshore Precinct. 

 

There are over 1,000 public parking bays across the Busselton Foreshore Precinct in addition to those available in the adjoining Cultural Precinct and the Busselton City Centre. In many ways, these are overlapping areas for the purposes of considering parking supply and demand.

 

The City has already spent considerable time developing a strategic approach to parking in both the Foreshore, Cultural and City Centre Precincts (including acquisition of land for future parking supply in the City Centre). The City recently commissioned a holistic examination of this through the Busselton City Centre Parking Utilisation and Turnover Survey, which included the Busselton Foreshore Precinct within the study area. The survey findings indicate that there is sufficient parking capacity in the Precinct for the foreseeable future and that, overall, there is a significant oversupply of parking in the Busselton City Centre.

 

At peak times, the survey found that parking supply in the Busselton Foreshore Precinct can be tight, but for the vast majority of the time it is not. It would be difficult and undesirable to provide infrastructure to meet peak demand as that would significantly impact the amenity and activity that makes the area so attractive from an urban/design landscape perspective (e.g. replacement of recreational grassed areas with bitumen car parks).


 

The fundamental principles of the Busselton Foreshore Master Plan support this view, as set out below:

·        reduce the visual dominance of car parks;

·        limit parking bays in the inner core to enable a greener, more people friendly, environment;

·        integration with the Busselton City Centre is an important element of the Foreshore Precinct to encourage people to walk, cycle or skate between the two using pedestrian and cycling pathways; and

·        the Busselton Foreshore Precinct is an integrated recreational and commercial area allowing for the management of parking supply and demand on a ‘whole of precinct’ basis, rather than site-by-site.

 

During periods of peak demand, overflow parking can also be made available on Signal Park and possibly in future, if the need arises, on parts of Barnard Park and Churchill Park. An additional 176 vehicle public car park has been constructed on the former Busselton Tennis Club grounds. The BPACC planned for the adjoining Cultural Precinct will generate significant parking demand at times, but would generally not overlap with peak times for the Foreshore and City Centre Precincts. 

 

The survey found that most of the parking demand generated in the Foreshore and Busselton City Centre Precincts is during the day. The highest parking occupancy rates on both peak and non-peak days were between 1 – 4 hours and this declined steadily after 2pm. This supports the view in terms of parking demand likely to be generated by attractors such as the BPACC and the new microbrewery. There is likely to be an under-utilisation of available parking in the afternoons and evenings, hence opportunities for separate turnover in shared parking areas.

Statutory Environment

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

 

City of Busselton Local Planning Scheme No. 21

The proposal is considered to be generally consistent with LPS21 which sets out the intent for the subject land under Special Provision Area 44 being to facilitate the planned, progressive renewal and revitalisation of the Busselton Foreshore in accordance with a broad community vision.

 

Planning and Development (Local Planning Schemes) Regulations 2015

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

Relevant Plans and Policies

The key plans and policies most relevant to the proposal include:

·        State Planning Policy 2.6: State Coastal Planning Policy

·        Busselton Foreshore Master Plan

·        Local Tourism Planning Strategy

·        Planning Bulletin 83/2013 – Planning for Tourism

 


 

State Planning Policy 2.6 State Coastal Planning Policy

The Busselton Foreshore Structure Plan and the various land tenure amendments required to implement the Structure Plan to date have been considered by the Department of Planning, Lands and Heritage, including in the context of SPP2.6. The section of the City’s coast adjacent to the structure plan area is subject to coastal protection and contains very significant assets, including the Busselton Jetty. Additional coastal protection measures have been implemented as part of redevelopment within the Busselton Foreshore Structure Plan area, including a buried seawall to a height of approximately 3.4m with a design life of 40 years. Further consideration of coastal protection will be required by the City during the terms of current and future leases for commercial leasehold sites within the Busselton Foreshore Precinct

 

The City is currently developing a Coastal Hazard Risk Management and Adaptation Plan (CHRMAP) for the majority of the City’s coast. Whilst a draft CHRMAP has not yet been presented to the Council, it is clear that a ‘protection’ approach will apply to that part of the coast containing the Busselton Foreshore Precinct, as it is already protected, and contains and/or is on the seaward side of the highest concentration of assets (economic, social and heritage) in the City of Busselton. 

 

Busselton Foreshore Master Plan

The Busselton Foreshore Master Plan (Attachment B) outlines the vision, objectives and design principles for the Busselton Foreshore. The Master Plan identifies development sites for land uses that are focused on community and civic use, hospitality, recreation and tourism. Detailed design considerations are also incorporated in the Master Plan that relate to building character and form, setbacks, orientation and frontages, ancillary development, landscaping and pedestrian links.

 

The design approach of the Master Plan has been to reduce car parking bays in the core of the Foreshore Precinct to enable a greener and more people friendly environment. The proposal reinforces the concept of having parking on the periphery, as well as improving access and legibility throughout. 

 

Local Tourism Planning Strategy

The Busselton Foreshore Structure Plan area and the Busselton Jetty are identified by the Local Tourism Planning Strategy (LTPS) as Strategic Tourism Precinct 2 and is noted as an iconic site of State significance. The modifications proposed for the Busselton Foreshore Structure Plan will not undermine the strategic policy directions for the Busselton Foreshore Precinct which are to: support the development of a resort hotel/landmark building, provide focus for entertainment and recreation; and maintain/improve connectivity and visual linkages to the Busselton City Centre.

 

Planning Bulletin 83/2013 – Planning for Tourism

Planning Bulletin 83/2013 provides guidance on the determination of the strategic value of sites and precincts for tourism, highlighting the importance of strategic planning for tourism. The policy specifically recognises the Busselton foreshore as a potential tourism precinct due to its proximity to tourist attractions and facilities; existing compatible land uses and infrastructure; existing and potential short stay accommodation opportunities; its character and amenity; visitation statistics to the locality; access including transport opportunities; and capacity to accommodate a mix of uses that complement tourism development.

 

Short stay accommodation was identified for the Busselton Foreshore in previous planning proposals and strategies including the Local Tourism Planning Strategy and Local Commercial Planning Strategy. This was in recognition of the project area being accessible, unique, having an excellent setting and meeting a perceived need for short stay accommodation close to the Busselton City Centre and beachfront.

Financial Implications

There are no financial implications associated with the Officer Recommendation.

Stakeholder Consultation

Subject to adoption for public consultation, the proposed Structure Plan will be advertised for 28 days in accordance with Part 4 of the Deemed Provisions (Schedule 2) of the Regulations. The proposal will also be referred to relevant State Government agencies for comment.

Risk Assessment

Officers have undertaken an assessment of the potential implications of carrying out the Officer Recommendation using the City’s risk assessment framework. The assessment identifies ‘downside’ risks only, rather than ‘upside’ risks as well. The implementation of the Officer Recommendation will involve advertising the proposed Structure Plan. In this regard, there are no significant risks identified.

Options

Should the Officer Recommendation not be supported, the following options could be considered:

1.         Seek further information on any particular matter before making a decision.

2.         Include further land uses (e.g. nightclub) and development standards for the proposed ‘Marine Terrace Precinct’.

3.         Determine not to adopt the proposed Structure Plan for advertising.

 

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

CONCLUSION

Officers consider the proposed Busselton Foreshore Structure Plan to be consistent with the relevant planning framework and are recommending that it be adopted for public consultation.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Implementation of the Officer Recommendation will involve public advertising of the Structure Plan for a period of 28 days, commencing within one month of the decision of the Council.


Council

189

25 November 2020

13.1

Attachment a

Endorsed Busselton Foreshore Structure Plan

 


Council

190

25 November 2020

13.1

Attachment b

Busselton Foreshore Master Plan

 


Council

191

25 November 2020

13.1

Attachment c

Proposed Busselton Foreshore Structure Plan

 





Council

238

25 November 2020

13.1

Attachment d

Car Parking Utilisation and Turnover Survey

 






































































Council

264

25 November 2020

13.1

Attachment e

Marine Terrace Precinct

 

 


Council                                                                                      267                                                       25 November 2020

14.             Engineering and Work Services Report

Nil


 

15.             Community and Commercial Services Report

Nil


 

18.             Motions of which Previous Notice has been Given

Nil

 

19.             urgent business

Nil

 

20.             Confidential Reports  

Nil

  

21.             Closure

The Presiding Member closed the meeting at 5.36pm.

 

 

 

THESE MINUTES CONSISTING OF PAGES 1 TO 267 WERE CONFIRMED AS A TRUE AND CORRECT RECORD ON Wednesday, 9 December 2020.

 

DATE:_________________  PRESIDING MEMBER:         _____________________________