CITY OF BUSSELTON

MINUTES FOR THE Council MEETING HELD ON 9 December 2020

TABLE OF CONTENTS

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. 6

Previous Council Meetings. 6

8.1          Minutes of the Council Meeting held 25 November 2020. 6

Committee Meetings. 6

8.2          Minutes of the Airport Advisory Committee Meeting held 16 November 2020. 6

8.3          Minutes of the Meelup Regional Park Committee Meeting held 23 November 2020. 6

8.4          Minutes of the Finance Committee Meeting held 25 November 2020. 7

8.5          Minutes of the Airport Advisory Committee Meeting held 2 December 2020. 7

9....... RECEIVING OF Petitions, Presentations AND DEPUTATIONS. 7

10..... QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN (WITHOUT DISCUSSION). 7

11..... Items brought forward.. 8

ADOPTION BY EXCEPTION RESOLUTION.. 8

12.1        Finance Committee - 25/11/2020 - LIST OF PAYMENTS MADE - OCTOBER 2020. 9

12.2        Finance Committee - 25/11/2020 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 OCTOBER 2020. 19

14.1        THURSTUN LANE DUNSBOROUGH - REQUEST FOR A ONE WAY LANE. 49

17.1        COUNCILLORS' INFORMATION BULLETIN.. 53

ITEMS TO BE DEALT WITH BY SEPARATE RESOLUTION (WITHOUT DEBATE). 62

12.3        Finance Committee - 25/11/2020 - BUDGET AMENDMENT REQUEST / REVIEW - ENGINEERING AND WORKS SERVICES - NOVEMBER 2020. 62

12.4        Finance Committee - 25/11/2020 - APPLICATION FOR RATE EXEMPTION - RELATIONSHIPS AUSTRALIA WA INC. 85

14.3        CEO DELEGATION TO AWARD CONTRACT RFQ 68/20 GALE ROAD RECONSTRUCTION AND WIDEN.. 93

15.1        MARKETING AND EVENTS REFERENCE GROUP OUTCOMES. 97

ITEMS FOR DEBATE. 103

12.5        Airport Advisory Committee - 2/12/2020 - BUSSELTON MARGARET RIVER AIRPORT BUSINESS DEVELOPMENT. 103

14.2        RESPONSE TO PETITION FROM RESIDENTS ALONG DIAMANTE BOULEVARD AND PRINCEVILLE AVENUE, DUNSBOROUGH - IN RELATION TO INSTALLED STREET LIGHT. 118

16.1        ADOPTION OF 2019-2020 ANNUAL REPORT. 125

18..... Motions of which Previous Notice has been Given.. 180

19..... urgent business. 180

20..... Confidential Reports. 180

21..... Closure. 180

 

MINUTES

MINUTES OF A Meeting of the Busselton City Council HELD IN Council Chambers, Administration Building, Southern Drive, Busselton, ON 9 December 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 5.34pm.

 

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

Ms Sarah Pierson, Manager, Governance and Corporate Services

Ms Melissa Egan, Governance Officer

 

 

Apologies:

 

Nil

 

Approved Leave of Absence:

 

Nil

 

Media:

 

0

 

Public:

 

0

3.               Prayer

The prayer was delivered by Pastor Tony Peak of Abundant Life Centre.

 

4.               Application for Leave of Absence 

Nil

 

5.               Disclosure Of Interests

The Mayor noted his declaration of impartiality interest in relation to Item 12.3 ‘Finance Committee - 25/11/2020 - Budget Amendment Request / Review - Engineering and Works Services - November 2020’.

 

The Mayor noted a declaration of a financial (indirect) interest had been received from Cr Sue Riccelli in relation to Item 12.4 ‘Finance Committee - 25/11/2020 - Application for Rate Exemption – Relationships Australia WA Inc.’.

 

The Mayor noted a declaration of a financial (indirect) interest had  been received from Cr Lyndon Miles in relation to Item 15.1 ‘Marketing and Events Reference Group Outcomes’.

 

The Mayor advised that in accordance with the Local Government (Rules of Conduct) Regulations 2007, these declarations would be read out immediately before these items were discussed.

 

6.               Announcements Without Discussion

Announcements by the Presiding Member

 

The Mayor acknowledged this was the last meeting of what had been a tumultuous year, but one that Council has enjoyed, with some great rewards in our community. Council moves toward 2021 with optimism and looks forward to February and the first flight of Jetstar into our airport. The Council wishes our whole community a safe, prosperous and Happy Christmas and New Year.

 

7.               Question Time For Public

Response to Previous Questions Taken on Notice

 

Nil

 

 

Question Time for Public

 

The following question was submitted prior to the meeting and, in accordance with current advertising of public question time, was read out by the Mayor at the meeting. A response has also been provided administratively. A further question submitted was determined by the Mayor to not be a question and a response was not provided.

 

7.1             Ms Anne Ryan

 

Question

Can you provide an explanation of the following payments:

·         22/10/2020 - 118371 - City Of Busselton Various Reimbursements $ 990.00

·         7/10/2020 - 74621 BCP Civil & Plant Excavator & Plant Hire - Various Works $3,960.00; 22/10/2020 - 75012 - BCP Civil & Plant Excavator & Plant Hire - Various Works $ 9,530.07

·         9/10/2020 - 7532 - City Of Busselton Various Reimbursements - $624.50

·         15/10/2020 - 4304 - City Of Busselton Various Reimbursements - $685.00

 

And whether the reporting meets the requirements of the Local Government (Financial Management Regulations 1996, specifically regulation 13 which requires payments made from the municipal fund or trust fund and  a monthly list of payments to show:

·         the payee’s name;

·         the amount of the payment;

·         the date of the payment; and

·         sufficient information to identify the transaction.

 

Response

(Response provided by Officers and read out by the Mayor)

While it is contested that the listing provided in the report on the payments from the Municipal Fund or Trust Fund does not meet the requirements of the Local Government (Financial Management) Regulations 1996, it is acknowledged that the description of “various” could be improved and officers will do so in the future. In relation to the specific queries, officers advise as follows:

·               22/10/2020 - 118371 - City of Busselton Various Reimbursements - $990.00:

This is a payment to the City of Busselton to account for the water sampling and inspections on the GLC pools and spa.

 

·               7/10/2020 - 74621 - BCP Civil & Plant Excavator & Plant Hire - Various Works $3,960.00 - 22/10/2020 - 75012 BCP Civil & Plant Excavator & Plant Hire - Various Works - $9,530.07

These payments are for plant hire and civil works.

 

·               9/10/2020 - 7532 - City of  Busselton Various Reimbursements - $624.50

This is a payment from the City of Busselton Trust Account to the Municipal Account for the commissions from both the BRB Levy and the BCITF Commission.

 

·               15/10/2020 - 4304 - City of Busselton Various Reimbursements - $685.00

This is a refund of an overpayment in BPay by a customer.

 

 

 

8.               Confirmation and Receipt Of Minutes

At this time, the Presiding Member advised that Items 8.1 to 8.5 inclusive would be adopted by en bloc resolution:

 

Council Decision C2012/145         Moved Deputy Mayor K Hick, seconded Councillor J Barrett-Lennard That the Recommendations for the Confirmation and Receipt of Minutes for the following items be carried en bloc: 8.1             Minutes of the Council Meeting held 25 November 2020 8.2             Minutes of the Airport Advisory Committee Meeting held 16 November 2020 8.3             Minutes of the Meelup Regional Park Committee Meeting held 16 November 2020 8.4             Minutes of the Finance Committee Meeting held on 25 November 2020 8.5             Minutes of the Airport Advisory Committee Meeting held 2 December 2020 CARRIED 9/0

Previous Council Meetings

8.1             Minutes of the Council Meeting held 25 November 2020

Council Decision C2012/146         Moved Deputy Mayor K Hick, seconded Councillor J Barrett-Lennard That the Minutes of the Council Meeting held 25 November 2020 be confirmed as a true and correct record. CARRIED 9/0 En Bloc

Committee Meetings

8.2             Minutes of the Airport Advisory Committee Meeting held 16 November 2020

 

Council Decision C2012/147            Moved Deputy Mayor K Hick, seconded Councillor J Barrett-Lennard That the Minutes of the Airport Advisory Committee meeting held 16 November 2020 be noted. CARRIED 9/0 En Bloc

 

8.3             Minutes of the Meelup Regional Park Committee Meeting held 23 November 2020

Council Decision C2012/148           Moved Deputy Mayor K Hick, seconded Councillor J Barrett-Lennard That the Minutes of the Meelup Regional Park Committee meeting held 23 November 2020 be noted. CARRIED 9/0 En Bloc

8.4             Minutes of the Finance Committee Meeting held 25 November 2020

Council Decision C2012/149         Moved Deputy Mayor K Hick, seconded Councillor J Barrett-Lennard That the Minutes of the Finance Committee Meeting held 25 November 2020 be noted. CARRIED 9/0 En Bloc

 

8.5             Minutes of the Airport Advisory Committee Meeting held 2 December 2020

Council Decision C2012/150           Moved Deputy Mayor K Hick, seconded Councillor J Barrett-Lennard That the Minutes of the Airport Advisory Committee Meeting held 2 December 2020 be noted. CARRIED 9/0 En Bloc

 

9.               RECEIVING OF Petitions, Presentations AND DEPUTATIONS

Petitions

 

Nil

 

Presentations

 

Ms Jody Lang presented as a party with an interest in Item 14.2 ‘Response to Petition from Residents Along Diamante Boulevard And Princeville Avenue, Dunsborough - In Relation to Installed Street Light’. Ms Lang was opposed to the recommendation.

 

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 C2012/151    Moved Councillor P Cronin, seconded Deputy Mayor K Hick That the Committee and Officer Recommendations in relation to the following agenda items be carried en bloc: 12.1        Finance Committee - 25/11/2020 - LIST OF PAYMENTS MADE - OCTOBER 2020   12.2        Finance Committee - 25/11/2020 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 OCTOBER 2020   14.1        THURSTUN LANE DUNSBOROUGH - REQUEST FOR A ONE WAY LANE   17.1        COUNCILLORS' INFORMATION BULLETIN CARRIED 9/0 En Bloc

 

12.1           Finance Committee - 25/11/2020 - LIST OF PAYMENTS MADE - OCTOBER 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 October 2020⇩

 

This item was considered by the Finance Committee at its meeting on 25/11/2020, the recommendations from which have been included in this report.

 

Council Decision and Committee Recommendation and Officer Recommendation C2012/152    Moved Councillor P Cronin, seconded Deputy Mayor K Hick   That the Council notes payment of voucher numbers M118335 – M118374, EF074591 – EF075127, T7531 – T7533, DD004286 – DD004319 together totalling $7,343,005.77. CARRIED 9/0 En Bloc

 

EXECUTIVE SUMMARY

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

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

Council		18		9 December 2020
12.1	Attachment a		List of Payments October 2020

 

12.2           Finance Committee - 25/11/2020 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 OCTOBER 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 October 2020⇩ Attachment b    Financial Activity Statement October 2020⇩

 

This item was considered by the Finance Committee at its meeting on 25/11/2020, the recommendations from which have been included in this report.

 

Council Decision and Committee Recommendation and Officer Recommendation C2012/153    Moved Councillor P Cronin, seconded Deputy Mayor K Hick That the Council receives the statutory financial activity statement reports for the period ending 31 October 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 31 October 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 31 October 2020

The Statement of Financial Activity (FAS), for the year to date (YTD) as at 31 October 2020 shows an overall Net Current Position of $39.2M as opposed to the budget of $29.6M.  This represents a positive variance of $9.6M 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses from Ordinary Activities

Expenditure from ordinary activities is $3.4M or 12.4% less than expected when compared to the budget YTD as at October.  The following individual expense line items on the face of the financial statement have YTD variances that meet the material reporting thresholds:

 

1.      Materials and Contracts

Better than budget by $1.7M or 28.4%.  The table below lists the main variance items that meet the reporting thresholds:

 

 

 

 

2.    Utilities

Costs are $114K under budget YTD.  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.  This is demonstrated by a reduction in the YTD variance by $27K in October.

3.    Insurance Expenses

Underspent by $147K compared to the YTD budget of $744K, due to delays in finalising the WorkCare Workers Compensation policy and paying the outstanding premiums totaling $179K.

 

4.    Other Expenditure

$918K under the budget YTD. The main contributing items are listed below:

 

5.    Non-Operating Grants, Subsidies & Contributions

The negative variance of $1M 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.

 

6.    Capital Expenditure

As at 31 October 2020, there is an underspend variance of 54.6% or $7.4M in total capital expenditure, with YTD actual at $6.2M against the YTD amended budget of $13.6M.  A portion of this positive underspend variance is offset by the negative variance in Non-operating Grants, Contributions & Subsidies discussed above, with the remainder offset by the 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:

 

 

 

7.    Proceeds From Sale of Assets

YTD proceeds from sale of assets is $140K 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.    Transfer to Restricted Assets

There is a YTD variance in transfers to restricted assets of $1.9M 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 $1.392m has been received YTD October the bulk of which are for road works bonds ($1.068m).

 

9.    Transfer from Restricted Assets

YTD there has been $59K transferred from restricted assets into Muni.  This was mainly attributable to refunds of road work bonds of $44k, refund of hall deposits $9k and other refunds of $6k.

 

10.  Transfer from Reserves

There is a YTD variance in Transfers from Reserves of $236K less than amended budget.  The following planned expenditures, funded from reserves, had not yet occurred by the end of October:

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

·        $20K for purchase of furniture and equipment for the GLC and $10k for Art Geo’s Art Awards;

·        $143K for purchase of eight items of plant and equipment;

·        $12K 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 31 October 2020, the value of the City’s invested funds remained steady at $89.29M. 

 

The balance of the 11am account (an intermediary account which offers immediate access to the funds compared to the term deposits and a higher rate of return compared to the cheque account) remained unchanged at 6.0M.

 

During the month of October three term deposits totalling the amount of $5.5M matured. Existing deposits were renewed for a further 131 days at 1.61% on average.

The official cash rate remains steady for the month of October at 0.25% but has dropped to 0.10% in November. 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 October 2020 are provided below to ensure there is appropriate oversight and awareness.

 

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 31 October 2020, the City’s net current position stands at $39.2M. The City’s financial performance is considered satisfactory, and cash reserves remain strong.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

Council		30		9 December 2020
12.2	Attachment a		Investment Report October 2020

 

Council		47		9 December 2020
12.2	Attachment b		Financial Activity Statement October 2020

 

14.1           THURSTUN LANE DUNSBOROUGH - REQUEST FOR A ONE WAY LANE

STRATEGIC GOAL	5. TRANSPORT Smart, connective and accessible
STRATEGIC OBJECTIVE	5.2 Road networks that provide for a growing population and the safe movement of all users through the District.
SUBJECT INDEX	Public Consultation
BUSINESS UNIT	Engineering and Facilities Services
REPORTING OFFICER	Design and Survey Coordinator - Justin Smith
AUTHORISING OFFICER	Director, Engineering and Works Services - Oliver Darby
NATURE OF DECISION	Executive: substantial direction setting, including adopting strategies, plans and policies (excluding local planning policies), tenders, setting and amending budgets, funding, donations and sponsorships, reviewing committee recommendations
VOTING REQUIREMENT	Simple Majority
ATTACHMENTS	Attachment a   Thurstun Lane- Dunsborough - Aerial Image⇩ Attachment b    Thurstun Lane - Dunsborough - One Way Traffic Proposal⇩

 

Council Decision and Officer Recommendation C2012/154    Moved Councillor P Cronin, seconded Deputy Mayor K Hick That the Council resolve to retain Thurstun Lane in Dunsborough as a two-way lane. CARRIED 9/0 En Bloc

 

EXECUTIVE SUMMARY

The City received a request in September 2019 from a ratepayer, seeking that Thurstun Lane in Dunsborough be changed from a two-way thoroughfare to a one-way thoroughfare. In considering the request, the City undertook some consultation with immediately affected residents.  

 

This report summarises the feedback received and proposes that no changes be made or proposed to Thurstun Lane.

 

BACKGROUND

Thurstun Lane is located in Dunsborough, in the vicinity of the Dunsborough Country Club. Thurstun Lane is comprised of three sections, totalling 615 meters in length.  The northern and southern sections of Thurstun Lane intersects both Gifford Road and North Street are not part of this review. The area of review is the eastern section of Thurstun Lane, which runs east of North Street in a loop and back to North Street.  This section is 264 metres long with a 3 metre average seal width (see Attachment A).

 

The City received a request via email in September 2019 from a resident concerned about the narrowness of Thurstun Lane, particularly associated with use by people not local to the area.  They noted instances where smaller vehicles have had to pull over to the side of the road to give way to construction style vehicles, with additional traffic being generated by development of a new house along the lane.  The resident also advised that their vehicle had been damaged in the process of moving over to allow vehicles to pass.

 

Due to the nature of the lane’s layout, there is no collected crash data for the lane.  The lane way does however meet all relevant Main Road WA specifications for a two way thoroughfare.  Despite this, in response to the concerns raised, the City determined that it would undertake some consultation with directly affected residents.   

In February 2020, the City produced a concept design showing a suggested one way proposal (see Attachment B) and sent the design to 23 residents for feedback.  The City received feedback from ten residents with the majority, eight, requesting that the lane be left as a two way lane.

 

The City additionally consulted internally with its waste services team who raised concerns with the proposal, indicating it would impact on the direction of the trucks entering the lane and the positioning of the bins.

OFFICER COMMENT

The noted increase in traffic along Thurstun Lane can be attributed to the new development along the lane way.  From the aerial image taken in March 2020 – also refer to Attachment A - there are three sites where construction works are evident.

 

Given this, the fact that the lane meets all relevant specifications, and the outcomes of the consultation, it is recommended that no changes are made to Thurstun Lane; and that its current two-way traffic configuration is maintained.

 

Statutory Environment

Main Roads WA are the relevant governing body and would need to approve any proposed changes from a two way to a one way thoroughfare. The City would need to provide documentation to substantiate a request, and in this case, the outcome of the public consultation would not support the application.

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

A concept plan was sent to 23 immediately affected residents seeking their feedback in relation to the proposal to change. Ten responses were received.  Eight respondents wanted to leave the lane as it is, with two indicating they would like the lane changed to a one way thoroughfare.

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 make an application to MRWA to change Thurstun Lane from a two-way thoroughfare to a one-way thoroughfare. This is not recommended for the reasons outlined in this report.

CONCLUSION

City Officers have consulted with affected residents in relation to the request received.  On the basis of that feedback, and noting that any increase in traffic associated with a new development in the lane is likely to be temporary, it is recommended that no changes be made to Thurstun Lane.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Implementation of the Officer Recommendation can take effect immediately.

Council		51		9 December 2020
14.1	Attachment a		Thurstun Lane- Dunsborough - Aerial Image

 

Council		52		9 December 2020
14.1	Attachment b		Thurstun Lane - Dunsborough - One Way Traffic Proposal

 

17.1           COUNCILLORS' INFORMATION BULLETIN

STRATEGIC GOAL	6. LEADERSHIP Visionary, collaborative, accountable
STRATEGIC OBJECTIVE	6.1 Governance systems, process and practices are responsible, ethical and transparent.
SUBJECT INDEX	Councillors' Information Bulletin
BUSINESS UNIT	Executive Services
REPORTING OFFICER	Reporting Officers - Various
AUTHORISING OFFICER	Director Finance and Corporate Services - Tony Nottle
NATURE OF DECISION	Noting: the item does not require a decision of Council and is simply for information purposes and noting.
VOTING REQUIREMENT	Simple Majority
ATTACHMENTS	Attachment a   Current Running SAT Reviews as at 25 November 2020⇩ Attachment b    20 October 2020 RCA BOARD Minutes⇩ Attachment c    Correspondence from Minister for Environment - WA Recovery Plan⇩

 

Council Decision and Officer Recommendation C2012/155    Moved Councillor P Cronin, seconded Deputy Mayor K Hick That the items from the Councillors Information Bulletin be noted: 17.1.1     State Administrative Tribunal Reviews 17.1.2     Regional Capitals Australia Board Meeting Minutes 17.1.3     Correspondence from Minister for Environment – WA Recovery Plan 17.1.4     Correspondence from Busselton Choral Society CARRIED 9/0 En Bloc

 

EXECUTIVE SUMMARY

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

 

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

 

INFORMATION BULLETIN

17.1.1       State Administrative Tribunal Reviews

 

A summary of the current State Administrative Tribunal reviews is provided at Attachment A.

17.1.2       Regional Capitals Australia Board Meeting Minutes

 

A meeting of the Regional Capitals Australia Board was held on 20 October 2020. The minutes are provided at Attachment B. 

17.1.3       Correspondence from Minister for Environment – WA Recovery Plan 

 

Correspondence has been received from Hon Stephen Dawson MLC Minister for Environment informing the City works planned within the Environment Portfolio as part of the WA Recovery Plan. A copy of the correspondence is provided at Attachment C.

17.1.4       Correspondence from Busselton Choral Society

 

“The Busselton Choral Society wishes to thank you very much for your letter of 1 October 2020 enclosing a donation of $311 to assist with the purchase of a wheeled keyboard cover for our machine. The new cover has improved the image of our keyboard and will help to keep it safer during storage and travel.”

 

This funding was provided from the Donations, Contributions and Subsidies fund.  

Council		55		9 December 2020
17.1	Attachment a		Current Running SAT Reviews as at 25 November 2020

 

Council		59		9 December 2020
17.1	Attachment b		20 October 2020 RCA BOARD Minutes

 

Council		61		9 December 2020
17.1	Attachment c		Correspondence from Minister for Environment - WA Recovery Plan

 

 

 

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

12.3           Finance Committee - 25/11/2020 - BUDGET AMENDMENT REQUEST / REVIEW - ENGINEERING AND WORKS SERVICES - NOVEMBER 2020

STRATEGIC GOAL STRATEGIC OBJECTIVE	6. LEADERSHIP Visionary, collaborative, accountable 6.1 Governance systems, process and practices are responsible, ethical and transparent.
SUBJECT INDEX	Budget Planning and Reporting
BUSINESS UNIT	Financial Services
REPORTING OFFICER	Director, Engineering and Works Services - Oliver Darby
AUTHORISING OFFICER	Director, Engineering and Works Services - Oliver Darby
NATURE OF DECISION	Executive: substantial direction setting, including adopting strategies, plans and policies (excluding local planning policies), tenders, setting and amending budgets, funding, donations and sponsorships, reviewing committee recommendations
VOTING REQUIREMENT	Absolute Majority
ATTACHMENTS	Attachment a   Minister Letter of Approval⇩ Attachment b    Bridge Funding Letter of Approval⇩ Attachment c    Special Bridge Grant - Design Tuart Drive Bridge⇩ Attachment d   Bridge Renewal Program R5 WA funded projects⇩

 

DISCLOSURE OF INTEREST
Date	9 December 2020
Meeting	Ordinary Council
Name/Position	Cr Grant Henley, Mayor
Item No./Subject	12.3 - Finance Committee – 25/11/2020 – Budget Amendment Request / Review – Engineering and Works Services – November 2020
Type of Interest	Impartiality Interest
Nature of Interest	My residential property adjoins the reserve which is part of the property the subject of the works proposed to be undertaken at King Street.

 

This item was considered by the Finance Committee at its meeting on 25 November 2020, the recommendations from which have been included in this report.

 

Council Decision and Committee Recommendation and Officer Recommendation C2012/156    Moved Deputy Mayor K Hick, seconded Councillor P Carter That the Council endorse the requested budget amendments outlined in this report, recognising the additional income received in grant funding, and restricted asset transfers including the associated expenditure as follows:   Reference Description Project Code Additional External Revenue Use of Revenue Received in Prior Years Additional Expenditure Transfer to/from Reserves   Transfer from Restricted Assets Impact on Budget 1 Boallia Road Bridge C0024 1,009,000  - 1,009,000 - -  - 2   Kaloorup Road Bridge C0023 936,000  - 936,000 - -  - 3 Tuart Drive Bridge A0025 2,500,000 - 2,500,000 - -  - 4 King Street Carpark Reconstruction C0060  -  - 46,860 -   46,860  - 5 King Street Landscaping Stage 2 C3237 -  - 15,000  -   15,000  - 6 Queen Street Paving Upgrade S0075 - - 44,547 -   44,547 -   The budget amendment is made in accordance with section 6.8(1) of the Local Government Act 1995 and results in a $0 net impact on the 2020/21 annual budget. CARRIED 9/0 BY ABSOLUTE MAJORITY

 

EXECUTIVE SUMMARY

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

BACKGROUND

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

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

·        is authorised in advance by Council resolution - absolute majority required; or

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

 

Approval is therefore sought for the budget adjustments for the reasons specified.

OFFICER COMMENT

Council adopted its 2020/2021 Municipal budget on Monday 27 July 2020 with a balanced budget position. Since then, officers have identified budgets that require adjustment. It is good management practice to revise the adopted budget when it is known that circumstances have changed. In keeping with this practice, budgets are reviewed on a monthly basis and removes the need for a major budget review in February/March of each calendar year.

 

Amendments to the budget are categorised into the three key types as listed below:

i.          Adjustments impacting the budget balance or net position of the City: relatively uncommon type.

ii.         Adjustments with no impact on the budget balance: most common amendment type.

iii.        Adjustments to transfer budget between capital and operating undertakings: relatively uncommon type.

 

Officers have reviewed the adopted budget for the month of August 2020 and subsequently recommend alterations to the budget as set out below.

 

i.          Adjustments impacting the budget balance.

This section identifies items which either increase or decrease the 2020/2021 budgeted operating position. There are no budget adjustment items requiring Council’s approval of this type.

ii.         Adjustments with no impact on the budget balance.

There are two budget amendment items of this type detailed below. The net effect of these amendments on the budget position is zero.

  

These adjustments are where new expenses are matched with new grants or contributions, or where reserve offsets are transferred between projects. In some instances, it is where requests are made to draw down additional budget from specific reserves for various reasons, or where expenses are reallocated within business units or between projects to meet revised needs.

 

1.    BRIDGE RENEWAL GRANTS                                                   Cost Codes A0023, A0024, A0025        

The City has been awarded grant funding for the renewal of three bridges under the Federal Government’s Bridge Renewal Program Round 5 (see Attachment B). Securing funding for three bridges is unprecedented with only 10 bridges funded across all of Western Australia under round 5.

 

a)         Boallia Road Bridge renewal of old timber structure with concrete culvert style crossing; total project cost $1,009,000. 50% will be Federal Bridge Grant funding while Main Roads WA will contribute the remaining 50%.

 

b)        Kaloorup Road Bridge renewal of old timber bridge structure with concrete culvert style crossing; total projects $936,000. 50% will be Federal Bridge Grant funding while Main Roads WA will contribute the remaining 50%. Further detail regarding these upgrade works are detailed below.

 

c)         Tuart Drive Bridge replacement post fire; total project cost $3,010,989. Funded from two Federal Bridge grants and Main Roads funding. Further detail regarding these upgrade works are detailed below.

 

Comments Regarding Each Project

 

a)         Boallia Road Bridge

The Boallia bridge project currently has $138,000 recorded on budget as both revenue and expense. These funds represent the estimated detailed design costs associated with the projects. Main Roads WA has outlaid these funds with no cost to be borne by the City. Australian Accounting Standards require that these costs be capitalised onto the City’s Balance Sheet at completion of the project, forming part of the overall new asset cost. In effect, these costs will be treated as donated assets as the City has ownership of the bridge. To this end, the $138,000 will be adjusted from the budget while at the same time the $1,009,000 will be added for the construction pursuant to the receipt of the Round 5 Bridge Renewal Program grant.

 

b)        Kaloorup Road Bridge

The same applies to the Kaloorup Road bridge project which also has $138,000 recorded on budget as both revenue and expense. As per above, these funds represent the estimated detailed design costs associated with this project. Main Roads WA has outlaid these funds with no cost to be borne by the City. Australian Accounting Standards require that these costs be capitalised onto the City’s Balance Sheet at completion of the project, forming part of the overall new asset cost. In effect, these costs will be treated as donated assets as the City is the owner of the bridge. To this end, the $138,000 will be adjusted from the budget while at the same time $936,000 will be added for the construction pursuant to the receipt of the Round 5 Bridge Renewal Program grant.

 

 

Further to the above, this project has only been provisioned with $250,000 in Federal grant funding instead of the $468,000 required to enable the project to proceed. Main Roads has available their 50% contribution of $468,000. A letter has subsequently been drafted by the Department of Infrastructure, Transport, Regional Development and Communications Program Administrator to the Minister seeking an allocation of an extra $218,000 from surplus bridge grant funds from prior rounds of the program. A simple administrative error where an incorrect figure was taken is the cause of the incorrect grant amount being allocated. Council will be kept informed of any developments. It is however recommended that the project be adjusted onto the budget at the full value in the knowledge that Main Roads will only proceed if the extra funding is secured.

 

c)         Tuart Drive Bridge

The Tuart Drive Bridge over the Abba River already has $567,000 in funding provisioned within the 2020/21 Budget that was set aside for planned substructure and superstructure repairs, assigned prior to the bridge being destroyed by fire. This is funding under the Federal Government’s Special Bridge Program distributed via the Financial Assistance Grant arrangements to the City by the Western Australian Grants Commission.

 

Council should be aware that this project will be funded by two Federal Government bridge related programs that are separate and distinct to each other with each administered by different Federal Government departments.

 

The Special Bridge Program grant has subsequently been adjusted in dollar value and redirected towards the detailed design and preliminary costs associated with the full replacement of the bridge, post destruction by fire (Attachment C).

 

Funding	Source
$340,659.00	Federal Special (Project) Bridge Funding
$170,330.00	Main Roads WA
$510,989.00

 

In summary, the total bridge project budget of $3,010,989 will comprise:

1.         $510,989 in Special Bridge Grant on a 2/3^rd, 1/3^rd basis with Main Roads contributing the 1/3^rd difference.

2.         $2,500,000 from the Bridge Renewal Program Round 5, based on a 50/50 funding basis with Main Roads WA contributing the other 50% totalling $1,250,000 towards the project.

 

These funds are to be incorporated into one Tuart Drive Bridge replacement project used for both the detailed design and construction.

 

2.    CASH IN LIEU OF PUBLIC OPEN SPACE                                                 Cost Code C0060, C3237, S0075

The City holds a Cash in Lieu of Public Open Space (CIL POS) contribution (reference number 25) valued at $174,365. This contribution is pursuant to a development in Eagle Bay that was collected in 1997. The different in value equates to interest earnings. These funds were tied to works related to public open space that must occur within the vicinity of the development.

 

 

The Western Australian Planning Commission have agreed via formal correspondence (see Attachment A) to the following:

1.         $67,958 to be utilised to construct a universal access footpath in Eagle Bay. This item is already on the 2020/21 budget (Cost Code C1753); funded from this source with an additional $27,500 from the Community Facility Development fund. 

 

2.         That the balance totalling $106,407 plus any interest that may accrue to a value of $107,465 be retrospectively applied to park POS upgrade works that the City had previously carried out at Riedle Park in Eagle Bay between 2010 through to 2014.  

 

The retrospective approval of works that have been carried out and paid for out of prior year municipal funds means that these restricted CIL POS monies are now deemed unrestricted and are transferrable into municipal funds, to be utilised at the discretion of the Council.  

 

Council approval is subsequently sought to recoup these funds and increase the budgets of the following projects:

a)         King Street Carpark Reconstruction                  (C0060)                       +$46,860

b)        King Street Landscaping Stage 2                         (C3237)                       +$15,000

c)         Queen Street Paving Upgrade                            (S0075)                       +$44,547

 

a)        King Street Carpark Reconstruction (C0060)

$140,000 has been budgeted for the King Street Car Park reconstruction. The scope of works has been increased to include the addition of a limestone wall to further protect the area from windblown sand, to provide additional seating and reduce damage caused by winter storms. This wall will complement the sand bag defences already in place.

b)        King Street Landscaping Stage 2 (C3237)

The upgraded King Street POS is now nearing completion. $64,000 had been budgeted for stage 2 landscape works. Forecasting has indicated that there will be a $15,000 shortfall against budget. To this end, an additional budget allocation is being sought. This extra cost can be attributed to small increases in project scope across elements of additional turf, planting and irrigation.

 

c)         Queen Street Paving Upgrade

The Queen Street Paving project stage 1 is budgeted at $961,870, funded by the Federal Government’s Local Road and Community Infrastructure Program. Council approval is sought to assign the balance of remaining funds of $44,547 towards this project. This will increase the budget annual allocation to $1,006,417.

 

iii.       Transfers between capital and operating budget.

This section is intended to identify any items which reallocate funds between the Capital Budget and Operating Budget. These items do not change the overall budget. There are no items detailed in the attachment requiring Council approval in this period.

 

Net Budget Position

After making the above adjustments, the budget position remains unchanged from budget adoption. Adjustments made to the Municipal Cash Budget is nil.

 

Statutory Environment

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

Relevant Plans and Policies

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

Financial Implications

A summary of the financial implications of these recommendations is shown in the table below. 

Reference	Description	Project Code	Additional External Revenue	Utilisation of Revenue Received in Prior Years	Additional Expenditure	Transfer to/from Reserves	Transfer from Restricted Assets	Impact on Budget
1	Boallia Road Bridge	C0024	1,009,000	-	1,009,000	-	-	-
2	Kaloorup Road Bridge	C0023	936,000	-	936,000	-	-	-
3	Tuart Drive Bridge	A0025	2,500,000	-	2,500,000	-	-	-
4	King Street Carpark Reconstruction	C0060	-	-	46,860	-	46,860	-
5	King Street Landscaping Stage 2	C3237	-	-	15,000	-	15,000	-
6	Queen Street Paving Upgrade	S0075	-	-	44,547	-	44,547	-

Stakeholder Consultation

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

Risk Assessment

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

Options

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

CONCLUSION

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

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

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

 

Council		70		9 December 2020
12.3	Attachment a		Minister Letter of Approval

 

Council		71		9 December 2020
12.3	Attachment b		Bridge Funding Letter of Approval

 

Council		72		9 December 2020
12.3	Attachment c		Special Bridge Grant - Design Tuart Drive Bridge

 

Council		84		9 December 2020
12.3	Attachment d		Bridge Renewal Program R5 WA funded projects

 

12.4           Finance Committee - 25/11/2020 - APPLICATION FOR RATE EXEMPTION - RELATIONSHIPS AUSTRALIA WA INC.

STRATEGIC GOAL	6. LEADERSHIP Visionary, collaborative, accountable
STRATEGIC OBJECTIVE	6.1 Governance systems, process and practices are responsible, ethical and transparent.
SUBJECT INDEX	Exemptions & Appeals (Rates)
BUSINESS UNIT	Rates
REPORTING OFFICER	Rates Coordinator - David Nicholson
AUTHORISING OFFICER	Director Finance and Corporate Services - Tony Nottle
NATURE OF DECISION	Executive: substantial direction setting, including adopting strategies, plans and policies (excluding local planning policies), tenders, setting and amending budgets, funding, donations and sponsorships, reviewing committee recommendations
VOTING REQUIREMENT	Absolute Majority
ATTACHMENTS	Attachment a   Letter Requesting Rate Exemption Attachment b    Rate Exemption Application⇩

 

DISCLOSURE OF INTEREST
Date	9 December 2020
Meeting	Ordinary Council
Name/Position	Cr Sue Riccelli, Councillor
Item No./Subject	12.4 Finance Committee – 25/11/2020 – Application for Rate Exemption – Relationships Australia WA Inc.
Type of Interest	Financial (Indirect)
Nature of Interest	The organisation I am employed by provides funding and services to both Relationships Australia WA Inc. and Headspace Busselton.

 

6.22pm:   At this time, Cr Riccelli left the meeting.

 

This item was considered by the Finance Committee at its meeting on 25/11/2020, the recommendations from which have been included in this report.

 

Council Decision and Committee Recommendation and Officer Recommendation C2012/157    Moved Councillor K Cox, seconded Councillor J Barrett-Lennard That the Council: 1.         Approve the rate exemption application from Relationships Australia WA Inc. under section 6.26(2)(g) of the Local Government Act 1995 on 7 Harris Road, Busselton, effective 1 July 2020; and 2.         Agree that this rate exemption is to continue where Relationships Australia WA Inc. confirms in writing by the 30 April annually that they continue to lease and use the property for the purposes stated in the application. CARRIED 8/0 BY ABSOLUTE MAJORITY

 

EXECUTIVE SUMMARY

An application with all required documentation has been received from Relationships Australia WA Inc. seeking a rate exemption on 7 Harris Road, Busselton, which they are leasing and using to deliver their Headspace Busselton services. On the basis of the application, this report recommends that the application for an exemption be granted effective as at 1 July 2020 in accordance with section 6.26(2)(g) of the Local Government Act 1995 (the Act).

BACKGROUND

Relationships Australia WA Inc. (RAWA) is a not-for-profit benevolent institution with Deductible Gift Receipt status. The vast majority of RAWA income is from Commonwealth and State grants so as to provide community services. RAWA lease 71 Kent Street, Busselton, and now 7 Harris Road, Busselton, from which they provide Headspace Busselton services free of charge to the community. At its meeting on 8 May 2019, Council approved (C1905/089) RAWA’s application for a rate exemption on 71 Kent Street, Busselton, due to it being used exclusively for charitable purposes.

 

RAWA is the lead agency for Headspace Busselton. Headspace is an organisation that operates across Australia, providing support, information and services to people aged 12-25.

 

Headspace Busselton offer anyone aged 12-25 free access to social workers, counsellors, mental health workers and psychologists. Headspace also has an extensive website where young people and their carers can read information on a wide range of issues including depression, bullying and relationship issues.

OFFICER COMMENT

Section 6.26 of the Act states that all land is rateable except in certain circumstances. Section 6.26(2)(g) states that “land used exclusively for charitable purposes” is not rateable.

 

RAWA are seeking a rate exemption on 7 Harris Road, Busselton, under section 6.26(2)(g), because of its Headspace Busselton use. They have provided the required application and documentation so as to meet the City’s assessment criteria.

 

It is considered that the application should be approved as the Headspace services provided by RAWA are charitable in nature and therefore the property at 7 Harris Road, Busselton, would be rate exempt under section 6.26(2)(g) of the Act.

 

No physical inspection of the property has been carried out as the documentation provided by RAWA on the property’s use is considered sufficient.

Statutory Environment

Section 6.26(2)(g) of the Act specifically states that land used exclusively for charitable purposes is not rateable.

Relevant Plans and Policies

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

Financial Implications

Approving a rate exemption effective at 1 July 2020 would see a $4,139.84 reduction to the 2020/2021 rating income. There would be similar reductions for future financial periods where the property continues to be leased by RAWA and used for providing Headspace Busselton services.

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.

 

If Council choses to decline the rate exemption application, then staffing and/or legal costs may be incurred should RAWA request the State Administrative Tribunal review the decision.

Options

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

CONCLUSION

It is considered that the property at 7 Harris Road, Busselton, whilst leased by Relationships Australia WA Inc. and used by them to provide Headspace Busselton services to the community would be rate exempt under section 6.26(2)(g) of the Act.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The rate exemption on 7 Harris Road, Busselton, if approved, should be effective from 1 July 2020 as the application was lodged by Relationships Australia WA Inc. after they received the property’s 2020/21 annual rate notice.

Council		88		9 December 2020
12.4	Attachment a		Letter Requesting Rate Exemption

 

Council		92		9 December 2020
12.4	Attachment b		Rate Exemption Application

 

6.23pm:         At this time, Cr Riccelli re-entered the meeting.

 

14.3           CEO DELEGATION TO AWARD CONTRACT RFQ 68/20 GALE ROAD RECONSTRUCTION AND WIDEN

STRATEGIC GOAL	5. TRANSPORT Smart, connective and accessible
STRATEGIC OBJECTIVE	5.2 Road networks that provide for a growing population and the safe movement of all users through the District.
SUBJECT INDEX	Tenders
BUSINESS UNIT	Operation and Works Services
REPORTING OFFICER	Manager, Operation and Works Services - Matthew Twyman
AUTHORISING OFFICER	Director, Engineering and Works Services - Oliver Darby
NATURE OF DECISION	Executive: substantial direction setting, including adopting strategies, plans and policies (excluding local planning policies), tenders, setting and amending budgets, funding, donations and sponsorships, reviewing committee recommendations
VOTING REQUIREMENT	Absolute Majority
ATTACHMENTS	Nil

 

Council Decision and Officer Recommendation C2012/158    Moved Councillor P Cronin, seconded Deputy Mayor K Hick That the Council: 1.         Delegates to the Chief Executive Officer the power and duty to: a.         decide which of the quotations received in response to request for quotation 68/20 Gale Road Reconstruction and Widen  (if any) would be most advantageous to the City of Busselton to accept (Preferred Respondent); and b.         negotiate and agree with the Preferred Respondent minor variations in accordance with Regulation 20 of the Local Government (Functions and General) Regulations 1996 prior to entering in a contract with the Preferred Respondent. 2.         Resolves that the delegation under resolution 1 is at all times subject to the contract price not exceeding the lesser of the overall project budget or $1,500,000. CARRIED 9/0 BY ABSOLUTE MAJORITY

 

EXECUTIVE SUMMARY

The purpose of this report is to delegate authority to the Chief Executive Officer to award the Request for Quotation 68/20 Gale Road Reconstruction and Widen project (RFQ 68/20).

 

The project consists of the upgrade of the existing section of Gale Road between Gibb Road and Jindong-Treeton Road (SLK 4.155 and 8.070), with the works to be completed during the summer period of 2021.

 

BACKGROUND

As part of the City’s upgrade of narrow sealed roads, Gale Road between Gibb Road and Jindong-Treeton Road (SLK 4.155 and 8.070) is to be upgraded during the 2020/21 financial year. The project is listed within the 2020/21 Capital Budget as ‘S0073 Gale Road Rural Reconstruction and Widen SLK 4.155-8.070’.

 

 

The scope of this upgrade project is to widen the road surface from 4m to 6.2m to accommodate commodity haulage vehicles, linking Restricted Access Vehicle (RAV) network sections, so as to provide a safe route both north and south of this area, utilising the shortest routes available. The project will improve safety particularly for passing vehicles and also the east - west link between Bussell Highway and Jindong-Treeton Road.

 

Locality Plan

OFFICER COMMENT

The Chief Executive Officer (CEO) has a delegation to award tenders or request for quotations (where exemptions to publicly invite tenders apply as per Regulation 11(2) of the Local Government (Function and General) Regulations 1996 (the Regulations)), to the value of $500,000 plus GST.

 

The value of RFQ 68/20, which will be issued through the WALGA Preferred Supplier Program, is expected to be in excess of $500,000. Given this, a report would normally be required to be presented to the Council for a formal resolution to award and enter into a contract with a preferred contractor.

 

 

RFQ 68/20 is scheduled to close on 8 January 2021, with a planned award by the 19 January 2021. In order to complete construction during the clement weather of summer, it is important that the preferred contractor is selected and notified as soon as possible after the quotation period has closed. In this instance, due to the associated time lines with the project, and with the next Ordinary Council Meeting not until 27 January 2021, officers are seeking delegated authority to the CEO for the award of RFQ 68/20.  This will expedite the formalisation of a contract and ensure the works are commenced by the end of January 2021.

Statutory Environment

The Regulations and the City's Purchasing Policy 239 (Purchasing Policy) provide the statutory procurement framework for procurement of the relevant goods and services. 

 

Regulations

In terms of Regulation 11(1) of the Regulations, unless an exemption applies, tenders are to be publicly invited before a local government enters into a contract for another person to supply goods or services if the consideration under the contact is, or is expected to be, more, or worth more, than $250,000 (Tender Threshold).

 

Regulation 11(2)(b) stipulates that tenders do not have to be publicly invited if the supply of the goods or services is to be obtained through the WALGA Preferred Supplier Program, even if the consideration under the resulting contract exceeds the Tender Threshold.

 

Therefore, although the contract price for the goods and services is expected to exceed the Tender Threshold, the City would be exempt from the requirement under Regulation 11(1), i.e. to publicly invite tenders for these goods and services.

 

Purchasing Policy

In terms of Section 5.27 of the City’s Purchasing Policy, the City can make purchases from WALGA Preferred Suppliers for amounts over $250,000 in reliance on the exemption to the requirement for a public tender, provided that three quotes must be sought.

 

Relevant delegation

The contract value is expected to be greater than $500,000, therefore, in accordance with section 5.43(b) of the Local Government Act 1995 (the Act), read with Delegation DA 1-07, the contract must be accepted by the Council.

Relevant Plans and Policies

The Officer Recommendation aligns to the following adopted plan or policy:

·        Asset Management Policy

·        Engineering Technical Standards and Specifications

·        Occupational Safety and Health Policy

·        Purchasing Policy

Financial Implications

The 2020/21 endorsed budget includes provision for the Gale Road Reconstruction and Widen project.

Stakeholder Consultation

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

 

Risk Assessment

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

The Officer Recommendation serves to mitigate the currently identified risk of weather impacting construction completion and/or methodology.

 

Weather impacting construction completion and/or methodology
Risk Category	Risk Consequence	Likelihood of Consequence	Risk Level
Operational	Moderate	Unlikely	Medium

Options

As an alternative to the proposed recommendation, the Council may elect to have the award of the contract returned for consideration of the Council rather than delegate authority to the Chief Executive Officer.

CONCLUSION

It is recommended that Council delegate authority to the CEO to award of RFQ 68/20 Gale Road Reconstruction and Widen and to enter into a contract with the preferred contractor. This strategy will allow the preferred contractor to be notified as soon as possible after evaluation and for works to commence.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The award of the contract can be made by Tuesday 19 January 2021, subject to completion of submission evaluation and successful negotiation in accordance with the Officer Recommendation.

15.1           MARKETING AND EVENTS REFERENCE GROUP OUTCOMES

STRATEGIC GOAL	4. ECONOMY Diverse, resilient, prosperous
STRATEGIC OBJECTIVE	4.3 Events and unique tourism experiences that attract visitors and investment.
SUBJECT INDEX	Events Sponsorship
BUSINESS UNIT	Commercial Services
REPORTING OFFICER	Events Coordinator - Peta Tuck
AUTHORISING OFFICER	Director, Community and Commercial Services - Naomi Searle
NATURE OF DECISION	Executive: substantial direction setting, including adopting strategies, plans and policies (excluding local planning policies), tenders, setting and amending budgets, funding, donations and sponsorships, reviewing committee recommendations
VOTING REQUIREMENT	Absolute Majority
ATTACHMENTS	Nil

 

DISCLOSURE OF INTEREST
Date	9 December 2020
Meeting	Ordinary Council
Name/Position	Cr Lyndon Miles, Councillor
Item No./Subject	15.1 Marketing and Events Reference Group Outcomes
Type of Interest	Financial (Indirect)
Nature of Interest	I have met with a potential applicant for the expression of interest for the electronic events billboard, regarding working with them in a general business sense.

 

6.24pm:         At this time, Cr Miles left the meeting.

 

Council Decision and Officer Recommendation C2012/159    Moved Deputy Mayor K Hick, seconded Councillor R Paine That the Council: 1.         Endorses funding allocations towards the following events, to be funded from the adopted 2020/21 events budget as part of the 2020/21 Events Sponsorship Program (round two): Event Amount Dunsborough & Districts Progress Association – community events (Carols, Australia Day, ANZAC Day) $5,000 cash (+ up to $2,000 in-kind) Busselton Open Tennis Tournament $2,000 cash (or up to $2,500 if provided as Shop Local Vouchers) Yallingup Shred Fest $5,000 Dunsborough Art Society – Annual Art Exhibition $1,000 cash (+ up to $1200 in-kind hall hire) Margaret River Wine Association Show $5,000 Building Bridges – Harmony Day @ ArtGeo Cultural Precinct $2,000 cash (+ up to $2,000 in-kind) Raising The Vibe- Blue Tree Concert $5,000 cash (+ up to $1,000 in-kind) Fringe Opener special event $5,000 Totals Up to $36,700   2.         Endorses the allocation of an additional $5,500 towards the 2021 Margaret River Region Open Studios event, to be funded from the adopted 2020/21 events budget. 3.         Endorses the Expression of Interest for an electronic events billboard as outlined in the Officer Comment section of the report, to be funded through the adopted 2020/21 events budget. 4.         Endorses the allocation of up to $5,000 towards the replacement of tourism information bay signage located at Busselton (Bovell), Dunsborough and Vasse, to be funded from the adopted 2020/21 marketing budget. CARRIED 8/0

Council Decision and Officer Recommendation C2012/160    Moved Councillor K Cox, seconded Councillor P Carter That the Council: 5.         Endorses the allocation of $200,000 cash and up to $18,500 in-kind support per year towards the 2021 - 2023 Ironman WA events, to be funded from the 2021/22, 2022/23 and 2023/24 events budgets. CARRIED 8/0 BY ABSOLUTE MAJORITY

 

EXECUTIVE SUMMARY

A meeting of the Marketing and Events Reference Group (MERG) was held on Monday 23 November 2020. This report presents the recommendations from this meeting.

 

BACKGROUND

At the Ordinary Meeting of Council held on 13 April 2011, Council resolved (C1104/114) to endorse the implementation of a differential rating system whereby properties rated industrial and commercial across the City would directly contribute toward the City’s continued support of tourism, marketing and event activities. The City also established a key stakeholders reference group, known as the ‘Marketing and Events Reference Group’ (MERG), to make recommendations to Council with respect to the marketing and events budget allocations.

At its meeting on 22 June 2011, Council resolved (C1106/201) to introduce a 3% Differential Rate on industrial and ccommercial rated properties which has increased over time to 10%. The proceeds from the differential rate are allocated towards funding events and marketing.

The 2020/21 adopted budget for marketing and events totals $1,076,414. This excludes budget allocations for Leavers Week, administration, and events staffing.

A MERG meeting was held on Monday 23 November 2020, with the following key matters presented:

·        update on events held since the last meeting on 24 August 2020 and upcoming major events;

·        Round two of the 2020/21 Event Sponsorship Program and associated funding applications for consideration.

 

 

OFFICER COMMENT

Supporting the development and attraction of new events throughout the year, the City’s Events Sponsorship Program promotes the City of Busselton as an attractive events tourism destination. At the MERG meeting held on 23 November 2020, a range of requests for marketing and events funding were considered as outlined below:

 

Events Sponsorship Program – round two

Eight (8) applications were received through the 2020/21 Events Sponsorship Program – round two totalling $47,600. All applications were evaluated by Officers and presented at the MERG meeting on 23 November with the following recommendations. 

 

Event	Requested	MERG Recommendation
Dunsborough & Districts Progress Association – community events	$5,000 cash + up to $2,000 in-kind (ANZAC Day traffic management)	$5,000 cash (+ up to $2,000 in-kind)
Busselton Open Tennis Tournament	$3,000	$2,000 cash (or up to $2,500 if provided as Shop Local Vouchers)
Yallingup Shred Fest	$7,900	$5,000
Dunsborough Annual Art Exhibition	$1,000 (+ up to $1,200 in kind hall hire)	$1,000 (+ up to $1,200 in-kind)
Margaret River Wine Association Awards – Best Cab Sav award	$5,000	$5,000
Building Bridges – Harmony Day at the ArtGeo Cultural Precinct	$5,000 cash + $2,500 in-kind (traffic management and venue hire)	$2,000 cash + $2,000 (+ up to $2000 in-kind)
Raising the Vibe – Blue Tree Concert	$10,000	$5,000 cash (+ up to $1,000 in-kind)
Fringe Opener event	$5,000	$5,000
Totals	$47,600	$36,700

 

Request for re-consideration of allocated funding – Margaret River Region Open Studios

As part of round one of the 2020/21 Event Sponsorship Program Margaret River Region Open Studios (MRROS) applied for $20,000 funding. Previous endorsed funding allocations include $5,000 in 2015/16, $8,000 in 2016/17, $8,000 in 2017/18, $7,500 in 2018/19 and $7,000 in 2019/20.

 

At the MERG meeting held on 24 August 2020, members recommended the allocation of $7,000, which was endorsed by Council (C2009/110) at its meeting on 9 September 2020. This amount was awarded on the basis that events would not be given increases on previous years’ funding unless they could demonstrate new initiatives in their event requiring additional funding.

 

MRROS organisers have requested the City reconsider the funding amount and award the original request of $20,000. Their rationale is that the event has grown considerably (over 60,000 studio visits in 2020) with an estimated economic impact that has grown annually to over $7m in 2020, and that the event has not had an increase in funding during this time. 40% of the current participating artists are from the City of Busselton.

 

 

Previously, funding for the event has been matched by Shire of Augusta Margaret River, to encourage organisers to seek out equal representation between the two local government areas.  According to MRROS’s sponsorship application, the Shire currently sponsor an amount of $12,500. Therefore, it is recommended that the City matches that level of funding in 2020/21 by increasing the approved funding by $5,500 to a total of $12,500. Should Council endorse this, a new event key performance indicator (KPI) is recommended, requesting the event organiser endeavour to increase City of Busselton artist representation to 50% and for a minimum of 50% of official event functions to be held at venues within the City.

 

Request for Funding – 2021/22 – 2023/24 Events Budget – Ironman WA

Ironman WA have reached the end of their current funding agreement, with the agreement expiring in the 2020/21 financial year. The City has received an application for a further three (3) year agreement (2021 – 2023), with a request of $200,000 cash sponsorship plus $18,500 in-kind support per year.

 

This event remains a very important part of the City’s annual events calendar and this application for a further three years reinforces Ironman WA’s commitment to the event. While participant numbers have fluctuated over the past years, the event still brings an economic impact to the region in the vicinity of $8-$10M per year, while promoting Busselton to a national and international market. It is recommended that the request is supported with $200,000 cash and up to $18,500 in-kind support per year to be funded from the 2021/22 – 2023/24 events budgets.

 

Recommendation to seek expressions of interest – Electronic Events Billboard

Due to the demand on the use of the static billboard located near Bovell Oval, City Officers have been investigating the viability of converting the billboard to be electronic. The billboard is currently only able to display a maximum of two events at one time, one on the large main billboard and one on the smaller strip signage below. Over peak times, events are limited to a maximum of two weeks due to the high demand for advertising space. With the high cost of producing skins for the billboard (approximately $2,500 for the large billboard and $1,500 for the small billboard), this does not prove to be cost effective for many event organisers. Additionally, at the end of use many skins are not re-used, meaning that they end up in landfill.

 

Conversion of the billboard to be electronic has many benefits, including:

·        Ability to promote multiple events through use of a revolving display (according to Main Roads standards).

·        Cost effectiveness for events to utilise the billboard - not paying for printing costs.

·        Environmental savings.

·        Ability for the City to promote tourism attractions and other imagery.

·        Ability for City messaging i.e. important deadlines such as firebreak and burning periods  etc.

·        Conveying emergency information to the public i.e. bushfires.

 

Under the adopted 2020/21 Schedule of Fees and Charges, event organisers are currently charged $128.50 for hire of the large billboard and $123 for the small billboard, for a period of two weeks. It is anticipated that this fee could be increased slightly to cover additional power usage and recover costs.

 

 

Initial investigations indicate that this project will cost in the vicinity of $200,000 to $250,000 to implement. It is recommended that Officers proceed with an Expression of Interest process for development of the electronic billboard, with the potential to utilise unallocated funds in the adopted 2020/21 events budget as a result of the cancellation of the 2020 Ironman WA event.

 

Requests for Funding – 2020/21 Marketing Budget – Tourism Information Signage

In 2015, the City and the Shire of Augusta Margaret River (AMRS) commenced the engagement process for proposed improvements to tourist directional signage on main roads and upgrading of existing roadside visitor information across the two local government areas. Since this time a number of activities have been completed including further consultation with tourism operators and agencies, Main Roads WA (MRWA) and stakeholders.  Additionally, an external audit was completed by GHD in 2018/19.

 

Officers are now proceeding with upgrading the City of Busselton tourism information bay signage at Busselton (Bovell), Dunsborough and Vasse following a review which identified the following key issues:

·        Maps are outdated and no longer accurate;

·        Logos are out of date (reference to Western Australia’s South West, Margaret River Wine Region); and

·        General discolouring and deterioration of images.

City Officers have consulted with Margaret River Busselton Tourism Association (MRBTA) on the content, images and branding for the information bays and have agreed the following principles:

·        Busselton (Bovell) information bay  -  provide a caravan / RV focussed information bay including updated images, access through Busselton town centre, caravan/ RV parking, a Busselton map indicating caravan park locations, City of Busselton branding and logo and MRBTA logo and website;

·        Vasse information bay -  remove the existing signage and replace with a ‘you are here location map’ and City of Busselton branding and logo and MRBTA logo and website;

·        Dunsborough information bay - remove the existing signage and replace with a ‘you are here location map’ and City of Busselton branding and logo and MRBTA logo and website.

 

City Officers have sought quotes for replacement of all signage and are now waiting for new Margaret River Busselton Tourism Association (MRBTA) branding to be published prior to new signage designs being finalised, ordered and installed. Officers recommend the cost for replacing the information bay signage be funded from the marketing budget up to a value of $5,000.

 

Statutory Environment

The Officer Recommendation supports the general function of a local government under the Local Government Act 1995 to provide for the good government of persons in its district.

Relevant Plans and Policies

The Officer Recommendation aligns with the City’s Events Policy which provides event organisers with information on the event application and approval process and event sponsorship guidelines.

 

Financial Implications

The total amount raised through the Commercial and Industrial and Holiday Homes Differential Rates in the City’s adopted 2020/21 budget is $1,293,439. At the 27 July 2020 Council meeting, Council resolved (C2007/070) to allocate $1,076,414 in the 2020/2021 budget specifically for marketing and events.

At its meeting on 9 September 2020, Council endorsed (C2009/110) the following allocations within the adopted 2020/21 events and marketing budget:

·        $786,414 towards event sponsorship;

·        $250,000 towards Marketing and Economic Development initiatives; and

·        $40,000 towards City run events.

 

Funds currently committed from the adopted 2020/21 events budget through multi-year funding agreements and round one of the Event Sponsorship Program totals $415,400 and a further $15,000 is allocated towards attracting CBD activation events. This leaves a balance of $356,014 towards round two of the Events Sponsorship Program and any further event attraction or initiatives.

 

Of the $250,000 adopted 2020/21 marketing budget, $120,000 is allocated to the Airport Marketing Reserve, $50,000 is allocated to the Busselton Performing Arts and Convention Centre (BPACC) and up to $12,000 is allocated to the update of the City’s Events Strategy, leaving a balance of $68,000 to be applied to marketing and economic development initiatives in the 2020/21 financial year.

Stakeholder Consultation

Consultation has been undertaken with MERG members with representatives comprising the Busselton and Dunsborough Yallingup Chambers of Commerce and Industry, MRBTA, Busselton Jetty Inc. and the City of Busselton.

Risk Assessment

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

Options

Council may choose not to support the recommendations made by MERG and resolve not to endorse part or all of the recommendations.

CONCLUSION

MERG has been established to assist officers in making recommendations on the way in which funds raised through the industrial and commercial differential rate for the purposes of events and marketing are allocated.  This report contains the recommendations made at the 23 November 2020 MERG meeting, which if endorsed by Council, will result in the continuation of high quality events being held within the region, supported by successful marketing promotions. All recommendations support Council’s vision of being recognised as the ‘Events Capital WA.’

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Following Council’s decision, the outcomes will be communicated to MERG members and relevant event/marketing bodies for their information and implemented where required.

 

6.25pm:   At this time, Cr Miles re-entered the meeting.

 

ITEMS FOR DEBATE

12.5           Airport Advisory Committee - 2/12/2020 - BUSSELTON MARGARET RIVER AIRPORT BUSINESS DEVELOPMENT

STRATEGIC GOAL	5. TRANSPORT Smart, connective and accessible
STRATEGIC OBJECTIVE	5.1 Public transport services that meet the needs of the community.
SUBJECT INDEX	Busselton Margaret River Airport
BUSINESS UNIT	Commercial Services
REPORTING OFFICER	Manager, Commercial Services - Jennifer May
AUTHORISING OFFICER	Director, Community and Commercial Services - Naomi Searle
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   BMRA Master Plan -  Precinct Plan⇩

 

This item was considered by the Airport Advisory Committee at its meeting on 2/12/2020, the recommendations from which have been included in this report.

 

Officers foreshadowed an amendment to the recommendation prior to the meeting. In accordance with the City’s Standing Orders Local Law 2008, any amendment to a Committee Recommendation is taken to be an Alternative Motion, with the Committee Recommendation to be considered first.

 

COMMITTEE RECOMMENDATION That the Council note the Officer’s report and endorses the commercial opportunities for the Busselton Margaret River Airport as set out in the below table: Product/Service Description Actions Timeline BMRA Route Development ·    Interstate RPT domestic services (Melbourne, Sydney, Brisbane) ·    Intrastate FIFO closed charter operations  ·    Intrastate RPT domestic services (Port Hedland, Karratha, Broome, Newman) ·    International RPT services (Singapore) ·    In partnership with the State Government (TWA), progress new route development opportunities for Sydney, Brisbane and Singapore ·    Continue to promote the BMRA as a FIFO regional base to mining /resource sector (Rio Tinto, BHP, FMG, CME) ·    Negotiations with airlines ·    Federal Govt approvals (Home Affairs, Border Force)  2021       Alternate landing Site ·    Alternate airport for international airlines to Perth Airport in the event of inclement weather and/or closure ·    Business analysis to provide the service including airline pricing structure, aircraft infrastructure and aviation firefighting and rescue services   ·    Quantify the requirements and costings for the City to provide a full alternate landing site facility ·    Prepare an appropriate  pricing structure for charging international airlines for using BMRA Dec 2020 – January 2021 General Aviation 34 lots Code B ·    Various sizes, with capacity to combine land lots ·    Fully serviced lots for lease with Code B apron access. ·    GA focus Prepare a report for Council including the following options: ·    Option 1  -  advertise and market lease opportunities ·    Option 2  -  prepare business case for Council to lease developed hangar lots (City construct hangars) ·    Option 3 -  enter into a partnership with developer/investor to build and lease hangar lots  2021 (Q2) General Aviation 1 x Code C lot ·    Fully serviced ·    Size: 3840m2 each ·    Suit aircraft maintenance / servicing / freight / smaller RPT operations ·    Advertise commercial lease opportunity, including domestic freight, private charter operations or RPT operations (GA aircraft < 30,000kgs) 2021 (Q2)                 ·    10ha undeveloped land   ·                              Commercial & Industrial precinct 4 land lots   ·    Fully serviced land lots for lease ·    Size: 4864m2 each ·    Direct runway access ·    Dedicated airfreight focus for lease by commercial aviation and support businesses Prepare an Expression of Interest, including one or more of the options below, to market / advertise the Commercial / Industrial precinct opportunities: ·    Option 1 -  City advertise and market commercial lease opportunities intrastate and nationally ·    Option 2 – City enter into commercial arrangement on long term lease basis with private developer/investor ·    Option 3 -  Approach Airport North Developer and negotiate commercial arrangement for external management of precinct ·    Option 4 -  Offer land lots for sale, either individually or as a precinct 2021 (Q1 – Q2)   Commercial & Industrial precinct 3 land lots   ·    3 fully serviced land lots for lease ·    Size: 2018m2-3088m2 each ·    Aviation / freight focus Commercial & Industrial precinct ·    ~ 10ha undeveloped (services to lot boundary) land for aviation/ light industrial purposes Advertising ·    Electronic screens in the terminal / arrivals hall ·    Static posters located in the terminal ·    Fences and benches within Carparks ·    Billboard (Neville Hyder Drive)   ·    Electronic screen is available  - advertising to be completed ·    Static poster boards to be installed early 2021 – advertising to be completed ·    Following commencement RPT services, landside advertising opportunities (car parks, benches etc.) to be completed 2020/2021 (Q1) Landside commercial opportunities ·    Airport Café/kiosk ·    Retail / tourism products ·    Car valeting and storage ·    Fuel station ·    Hotel / short stay accommodation  ·    BMRA café /kiosk license in negotiations now ·    Retail  / tourism product once RPT operations commence (small scale), dependent on new terminal ·    Car valeting and storage once RPT operations have commenced ·    Long term opportunities - Fuel stations and hotel sites     2021     2022   + 2025

LAPSED FOR WANT OF A MOVER

 

The Alternative Recommendation foreshadowed by Officers was then put:

 

Council Decision and ALTERNATIVE Recommendation C2012/161    Moved Deputy Mayor K Hick, seconded Councillor P Carter That the Council note the Officer’s report and endorses the investigation of commercial opportunities for the Busselton Margaret River Airport as set out in the below table: Product/Service Description Actions Timeline BMRA Route Development ·    Interstate RPT domestic services (Melbourne, Sydney, Brisbane) ·    Intrastate FIFO closed charter operations  ·    Intrastate RPT domestic services (Port Hedland, Karratha, Broome, Newman) ·    International RPT services (Singapore) ·    In partnership with the State Government (TWA), progress new route development opportunities for Sydney, Brisbane and Singapore ·    Continue to promote the BMRA as a FIFO regional base to mining /resource sector (Rio Tinto, BHP, FMG, CME) ·    Negotiations with airlines ·    Federal Govt approvals (Home Affairs, Border Force)  2021       Alternate landing Site ·    Alternate airport for international airlines to Perth Airport in the event of inclement weather and/or closure ·    Business analysis to provide the service including airline pricing structure, aircraft infrastructure and aviation firefighting and rescue services   ·    Quantify the requirements and costings for the City to provide a full alternate landing site facility ·    Prepare an appropriate  pricing structure for charging international airlines for using BMRA Dec 2020 – January 2021 General Aviation 34 lots Code B ·    Various sizes, with capacity to combine land lots ·    Fully serviced lots for lease with Code B apron access. ·    GA focus Prepare a report for Council including the following options: ·    Option 1  -  advertise and market lease opportunities ·    Option 2  -  prepare business case for Council to lease developed hangar lots (City construct hangars) ·    Option 3 -  enter into a partnership with developer/investor to build and lease hangar lots  2021 (Q2) General Aviation 1 x Code C lot ·    Fully serviced ·    Size: 3840m2 each ·    Suit aircraft maintenance / servicing / freight / smaller RPT operations ·    Advertise commercial lease opportunity, including domestic freight, private charter operations or RPT operations (GA aircraft < 30,000kgs) 2021 (Q2)                 ·    10ha undeveloped land   ·                              Commercial & Industrial precinct 4 land lots   ·    Fully serviced land lots for lease ·    Size: 4864m2 each ·    Direct runway access ·    Dedicated airfreight focus for lease by commercial aviation and support businesses Prepare an Expression of Interest, including one or more of the options below, to market / advertise the Commercial / Industrial precinct opportunities: ·    Option 1 -  City advertise and market commercial lease opportunities intrastate and nationally ·    Option 2 – City enter into commercial arrangement on long term lease basis with private developer/investor ·    Option 3 -  Approach Airport North Developer and negotiate commercial arrangement for external management of precinct ·    Option 4 -  Offer land lots for sale, either individually or as a precinct 2021 (Q1 – Q2)   Commercial & Industrial precinct 3 land lots   ·    3 fully serviced land lots for lease ·    Size: 2018m2-3088m2 each ·    Aviation / freight focus Commercial & Industrial precinct ·    ~ 10ha undeveloped (services to lot boundary) land for aviation/ light industrial purposes Advertising ·    Electronic screens in the terminal / arrivals hall ·    Static posters located in the terminal ·    Fences and benches within Carparks ·    Billboard (Neville Hyder Drive)   ·    Electronic screen is available  - advertising to be completed ·    Static poster boards to be installed early 2021 – advertising to be completed ·    Following commencement RPT services, landside advertising opportunities (car parks, benches etc.) to be completed 2020/2021 (Q1) Landside commercial opportunities ·    Airport Café/kiosk ·    Retail / tourism products ·    Car valeting and storage ·    Fuel station ·    Hotel / short stay accommodation  ·    BMRA café /kiosk license in negotiations now ·    Retail  / tourism product once RPT operations commence (small scale), dependent on new terminal ·    Car valeting and storage once RPT operations have commenced ·    Long term opportunities - Fuel stations and hotel sites     2021     2022   + 2025 CARRIED 9/0

 

Reasons:              Officers considered that the amendment to the recommendation with the additional wording better reflects / clarifies the intent of the Committee when making its recommendation.

                  

EXECUTIVE SUMMARY

This report outlines the business development activities planned for the Busselton Margaret River Airport (BMRA) over the next 12 to 18 months to capitalise on the potential aviation and economic opportunities and benefits the BMRA can provide to the region.

 

BACKGROUND

The City of Busselton completed the Busselton Margaret River Airport (BMRA) redevelopment project in March 2018 with construction of airside and landside infrastructure that enables domestic and international air services to destinations such as Melbourne, Sydney, Singapore, Kuala Lumpur, Denpasar and China.

 

The redevelopment project was funded through Federal, State and the City of Busselton and enabled the construction of significant infrastructure including the following:

·        Code 4E Runway: 2520m x 45m to facilitate aircraft such as Boeing 737, Airbus 320 and Airbus 330

·        A total of 11 aircraft apron parking bays (Code C / E) and connecting taxiways

·        Jet A1 and Avgas fuel facility (Truck & Bowser)

·        Two helipads

·        Public car parking (422 bays)

·        General aviation precinct 34 lots comprising two Code B aprons capable of accommodating up to 34 fully serviced hangars and two fully serviced hangar lots with Code C apron access

·        Airfreight hub – Stage 1 of the Commercial and Industrial Precinct with four serviced lots with direct airside access and three landside serviced lots

 

 

Following successful negotiations with Jetstar in 2018/19, a new Melbourne – Busselton air route was announced in October 2019, with a commencement date of 25 March 2020. To facilitate the new Melbourne service, the City commenced a terminal expansion project to facilitate passenger and baggage check-in, security screening and passenger processing, including the construction of a new Arrivals Hall. The City also applied to the Department of Home Affairs to upgrade its security classification to Category 3 for passenger and checked baggage screening, including the implementation of X-ray screening equipment and a people scanner.  Due to the advent of the COVID-19 pandemic, the Jetstar Melbourne - Busselton services have been deferred, with the expectation that they will commence in 2021 once domestic interstate travel is re-established.  

 

Current, regular or scheduled operations of the BMRA include 16 closed charter fly in fly out services per week operating between Perth, Busselton and north west mine sites such as West Angeles, Boolgeeda and Barimunya, private charter and General Aviation (GA) air traffic, Busselton Aero Club and related activities including flight training, Royal Flying Doctor Service, Surf Lifesaving helicopter operations, Department Fire and Emergency Services firefighting helitac operations and tourism operators such as Tigermoth flights and Busselton Airservices. The BMRA recorded 2,577 aircraft movements and 26,861 passengers through the terminal in 2019/20 and has seen an increasing trend in aircraft movements and passengers for 2020/21 FY to date. However, the COVID-19 pandemic has had significant impacts on the aviation and supporting industries and has made it difficult for Officers to progress commercial opportunities at the BMRA in 2020.  

 

BMRA Business Development

The City of Busselton’s Economic Development Strategy identifies the development of aviation related industries as an emerging industry base and as an opportunity to diversify the region’s economy. The City’s aim is to encourage and attract investment in the Busselton Margaret River Region through the aviation industry as it will provide employment benefits, attract additional investment and trade for local suppliers, and influence decisions of other businesses to relocate or set up in the region.

 

One of the key aims of the BMRA business unit is to develop the BMRA as a hub for air services by encouraging new competitors to operate from the BMRA, including airlines, freight services, charters and fly in fly out operations, and by stimulating new air routes to new destinations.

 

Officers are currently preparing a Commercial Strategy and Marketing Plan which will identify opportunities in more detail, including objectives, target markets and audiences, appropriate timings to go to market, methodology and costings. This plan has identified the following commercial opportunities:

·   

Product/Service	Description	Actions	Timeline
BMRA Route Development	·    Interstate RPT domestic services (Melbourne, Sydney, Brisbane) ·    Intrastate FIFO closed charter operations  ·    Intrastate RPT domestic services (Port Hedland, Karratha, Broome, Newman) ·    International RPT services (Singapore)	·    Develop business case for Sydney and Singapore services with State Government (TWA) ·    Continue to promote the BMRA as a FIFO regional base to mining /resource sector (Rio Tinto, BHP, FMG, CME) ·    Negotiations with airlines ·    Federal Govt approvals (Home Affairs, Border Force)	2021
Alternate landing Site	·    Alternate airport for international airlines to Perth Airport in the event of inclement weather and/or closure ·    Business analysis to provide the service including airline pricing structure, aircraft infrastructure and aviation firefighting and rescue services	·    Quantify the requirements and costings for the City to provide a full alternate landing site facility ·    Prepare an appropriate  pricing structure for charging international airlines for using BMRA	Dec 2020 – January 2021
General Aviation   34 lots Code B	·    Various sizes, with capacity to combine land lots ·    Fully serviced lots for lease with Code B apron access. ·    GA focus	·    Option 1  -  advertise and market lease opportunities ·    Option 2  -  prepare business case for Council to lease developed hangar lots (City construct hangars) ·    Option 3 -  enter into a partnership with developer/investor to build and lease hangar lots	2021 (Q2)
General Aviation 1 x Code C lot	·    Fully serviced ·    Size: 3840m2 each ·    Suit aircraft maintenance / servicing / freight / smaller RPT operations	·    Advertise commercial lease opportunity, including domestic freight, private charter operations or RPT operations (GA aircraft < 30,000kgs)	2021 (Q2)
Commercial & Industrial precinct 4 land lots	·    Fully serviced land lots for lease ·    Size: 4864m2 each ·    Direct runway access ·    Dedicated airfreight focus for lease by commercial aviation and support businesses	·    Option 1 -  City advertise and market commercial lease opportunities intrastate and nationally ·    Option 2 – City enter into commercial arrangement on long term lease basis with private developer/investor ·    Option 3 -  Approach Airport North Developer and negotiate commercial arrangement for external management of precinct ·    Option 4 -  Offer land lots for sale, either individually or as a precinct	2021 (Q1 – Q2)
Commercial & Industrial precinct 3 land lots	·    3 fully serviced land lots for lease ·    Size: 2018m2-3088m2 each ·    General freight focus		2021 (Q1 – Q2)
Advertising	·    Electronic screens in the terminal / arrivals hall ·    Static posters located in the terminal ·    Fences and benches within Carparks ·    Billboard (Neville Hyder Drive)	·    Electronic screen is available  - advertising to be completed ·    Static poster boards to be installed early 2021 – advertising to be completed ·    Following commencement RPT services, landside advertising opportunities (car parks, benches etc.) to be completed	2020/21 (Q1)
Landside commercial opportunities	·    Airport Café/kiosk ·    Retail / tourism products ·    Car valeting and storage ·    Fuel station ·    Hotel / short stay accommodation	·    BMRA café /kiosk license in negotiations now ·    Retail  / tourism product once RPT operations commence (small scale), dependent on new terminal ·    Car valeting and storage once RPT operations have commenced ·    Long term opportunities - Fuel stations and hotel sites	2021       2022   + 2025

OFFICER COMMENT

Officers are proposing that development of the following two activities are prioritised in early 2021:

·        BMRA interstate domestic route development (Sydney services); and 

·        Industrial and commercial precinct

 

BMRA Intestate Domestic Route Development

Whilst it is not quite ‘business as usual’, focus in the first quarter of 2021 will be on establishing the Melbourne – Busselton services. To commence negotiations for a direct Sydney – Busselton service, the City will need to prepare a business case that it can present to airlines and State Government to gain support for the new route. The business case will quantify passenger demand and revenue expectations for negotiations between the City and airlines.

 

Officers have recently discussed informally, a new direct Sydney – Busselton route with airlines and Tourism WA. Given the impacts on the aviation industry and restrictions that have been imposed on domestic and international travel resulting from the COVID19 pandemic, there is the potential for new opportunities to arise. Officers are proactively liaising with stakeholders to source funding to assist with the development of this business case. Officers will continue to liaise on potential funding support and also seek quotes accordingly.

 

Alternate Landing Site

On 1 March 2019, the City received confirmation that Busselton Margaret River Airport was designated as an alternate international airport by the Department of Infrastructure, Regional Development and Cities. Since being designated the City has received enquiries from numerous international airlines interested in nominating BMRA as an international alternate airport. Officers have identified a potential commercial opportunity to share in the financial savings made by international airlines if they were to nominate BMRA as an alternate to Perth Airport. In the event of Perth Airport being unavailable to airlines, aircraft could divert, park and refuel at BMRA and continue onto their destination once available.

 

 

However, to become a viable alternate the City would need to provide emergency response/aircraft firefighting and rescue services. Currently, the City does not meet the legislative criteria of number of passengers such that this service would be provided by AirServices Australia, the Federal government agency responsible for aviation fire and rescue services. Earlier in 2020, Officers worked with an aviation consultant to determine the high level requirements for an ALS and potential cost savings to airlines and will now complete further, detailed analysis to determine capital and operational costs required for emergency response/aircraft firefighting and rescue services.

 

Industrial and Commercial Precinct       

In the past six to nine months, the City has been approached by a number of private investment / fund managers in regards to joint venture (JV) or partnership opportunities for the BMRA. To date, discussions have been high level and relate to the type of investment partnerships that the City legally might be able to enter into. This has highlighted potential opportunities to work with private investment / developer organisations to explore how best the City can progress development of the industrial and commercial precinct with a key goal to create activity and critical mass, such that investment will follow for other areas for the BMRA like the GA precinct. 

 

Land development and specifically industrial/commercial land development is a specialised area that the City does not have deep knowledge or experience in. To ensure that the City maximises the commercial opportunities for the BMRA, Officers are proposing to engage a third party industrial/commercial development consultancy to complete a high level  desktop analysis and prepare an expression of interest to go to market for proposals based on the options presented in the table above.

 

This will require Officers to prepare a request for quotation (RFQ) which can then be forwarded to relevant organisations to provide cost estimates. An RFQ can be distributed in December 2020 with submissions to be submitted back to the City in late January 2021. 

 

General Aviation (GA) Precinct – Code B

Officers advertised an expression of interest for hangar lot leases in the new GA precinct in 2019. While there was some interest shown, no lease agreements were entered into. Feedback from interested parties at the time indicated that capital funding for hangar construction was difficult to secure and there were concerns relating to the term of the leases (21 years) and no buy-back clauses for any hangar infrastructure at the end of the lease term. The last nine months has seen a continued lack of interest due to COVID19. Officers are of the opinion that further advertising for hangar lot leases only, is likely to attract limited interest. Two options for consideration are:

1.         The City advertise for opportunities to lease hangars for various sizes at improved market rent value and on commitment of signing a lease the City proceed to construct the hangar infrastructure. This approach ensures that the City invests only based on demand for hangars.

2.         The City advertise an expression of interest for development opportunities for a third party to lease hangar lots and structures, and to sub-lease the hangars.

 

Officers are recommending that Council is provided (via the Airport Advisory Committee) with a detailed costing proposal for option 1 above, for consideration at the April 2021 Committee meeting.

 

 

General Aviation Precinct – Code C

As part of the Airport redevelopment project, two 50mx50m serviced hangar lease areas with Code 4C apron access were developed. Since this time, the City has utilised one of the hangar lots for the construction of the new Arrivals Hall and hence only one lease area remains available. This lease area has potential for commercial operators for RPT aircraft freight operations, private charter or smaller RPT operations (aircraft less than 30,000kg MTOW) and aircraft servicing or maintenance. However it is difficult to secure investment with no RPT services operating. Hence officers recommend holding off advertising this commercial opportunity nationally until RPT services are operating.

 

Landside Commercial Opportunities

Terminal Advertising

The terminal expansion works completed in March 2020 in preparation for the Jetstar Melbourne -Busselton flights included the installation of an electronic advertising screen and static light boxes in the new Arrivals Hall. Once a new date for the commencement of the Jetstar flights has been confirmed, dependent on the Western Australian interstate border restrictions being relaxed, officers will advertise locally for businesses interested in advertising at the BMRA. Other advertising opportunities such as landside car park and street furniture will be considered once the RPT services are established.

 

Terminal Concessions and Retail

Officers are currently negotiating a licence agreement with a café / kiosk operator for the terminal building that will service both FIFO charter flights and RPT services when they commence. There is potential to have a small retail / tourism product offering based in the terminal / Arrivals Hall however this will be considered once RPT services are operating.

 

Transport Providers

Officers engaged with transport providers such as car hire companies, coach, shuttle and mini-bus operators and private chauffeur and limousine operators prior to March 2020 and will re-engage once a date has been set for the commencement of RPT services.  

 

Statutory Environment

The BMRA operates in accordance with the following:

·        Aviation Transport Security Act 2004

·        Aviation Transport Security Regulations 2005

·        CASA Manual of Standards 139

·        Council’s Transport Security Plan

·        City policies and procedures

Relevant Plans and Policies

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

Financial Implications

The adopted 2019/20 Airport Operations Budget has an allocation of $25,000 for consultancy based activities. To date, a total of $7,000 has been expended leaving a balance of $18,000. While there are other activities that will draw on the consultancy budget, there should be sufficient funds to cover the costs associated with Officer Recommendation 2. There are no other direct financial implications associated with the Officer recommendations in this report.   

Stakeholder Consultation

Officers have consulted with the relevant stakeholders in regards to this report, including Airlines, Tourism WA, Margaret River Busselton Tourism Association, Australia South West, aircraft operators and owners and commercial / investment developers.

Risk Assessment

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

Options

As an alternative to the proposed recommendation the Council could:

1.         Not support business development activities for the BMRA and choose to do nothing.

2.         Propose alternative priorities for BMRA Business Development activities for any or all recommendations.

CONCLUSION

Significant commercial opportunities now exist at the BMRA as a result of the completion of the airside and landside developments. Unfortunately, due to the COVID19 pandemic, commercial investment opportunities have slowed and been difficult for Officers to secure. As the COVID-19 restrictions begin to lift within Australia and the aviation industry begins its recovery as airlines recommence operations, there is now potential for Officers to market and attract various commercial and investment opportunities at the BMRA.   

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Officers will implement the Officer Recommendations as outlined in this report.   

Council		117		9 December 2020
12.5	Attachment a		BMRA Master Plan -  Precinct Plan

 

 

14.2           RESPONSE TO PETITION FROM RESIDENTS ALONG DIAMANTE BOULEVARD AND PRINCEVILLE AVENUE, DUNSBOROUGH - IN RELATION TO INSTALLED STREET LIGHT

STRATEGIC GOAL	2. PLACE AND SPACES Vibrant, attractive, affordable
STRATEGIC OBJECTIVE	2.3 Creative urban design that produces vibrant, mixed-use town centres and public spaces.
SUBJECT INDEX	Infrastructure - Street Lighting
BUSINESS UNIT	Development Control
REPORTING OFFICER	Development Control Coordinator - Ronald Wildschut Manager, Engineering and Technical Services - Daniell Abrahamse
AUTHORISING OFFICER	Director, Engineering and Works Services - Oliver Darby
NATURE OF DECISION	Executive: substantial direction setting, including adopting strategies, plans and policies (excluding local planning policies), tenders, setting and amending budgets, funding, donations and sponsorships, reviewing committee recommendations
VOTING REQUIREMENT	Simple Majority
ATTACHMENTS	Attachment a   Aerial Image of Diamante Boulevard and Princeville Avenue - Street Light Location⇩ Attachment b    Street view of Diamante Boulevard/Commonage Road - Showing the Street Lights⇩

 

Councillor Cronin foreshadowed amendments to the Officer Recommendation prior to the meeting. In accordance with the City’s Standing Orders Local Law 2018, the Amended Recommendation was moved prior to the Officer Recommendation which was:

 

Officer Recommendation That the Council, with respect to the petition regarding lighting intensity on Diamante Boulevard and Princeville Avenue within the Dunsborough Lakes Estate: 1.         acknowledge that the lighting has been designed and installed to the relevant Australian Standard AS1158-2005; and 2.         resolve not to amend or treat the lights.

Council Decision AND AMENDED RECOMMENDATION C2012/162    Moved Councillor P Cronin, seconded Councillor P Carter That the Council, with respect to the petition regarding lighting intensity on Diamante Boulevard and Princeville Avenue within the Dunsborough Lakes Estate: 1.             acknowledge that the lighting has been designed and installed to the relevant Australian Standard AS1158-2005; 2.             resolve not to amend or treat the lights; 3.             requests that the CEO forwards a copy of the petition received from the residents of Diamante Boulevard and surrounds, correspondence from petitioners and a letter from the CEO outlining the concerns of the petitioners to Western Power, asking Western Power to evaluate the current light impact on affected houses, and requests that Western Power responds accordingly; and 4.             advise the petitioners of Council’s decision accordingly. CARRIED 9/0

 

 

Reasons:              Cr Cronin felt that the Council could assist these ratepayers that are affected by forwarding their petition on to the organisation that were responsible for the installation and maintenance of these lights, being Western Power and also request that the CEO write to Wester Power supporting the consideration of their grievance.

 

EXECUTIVE SUMMARY

At its Ordinary Council Meeting held on 25 August 2020, Council received a petition that sought to, as per the petition statement, bring to the attention of the Council an issue of lighting intensity (unnecessary luminosity and double outreach street lights) on Diamante Boulevard and Princeville Avenue within the Dunsborough Lakes Estate, Dunsborough. It is proposed by the petitioners that the lighting is amended “to be more suited to suburban residential street lighting, in keeping with a local 50km/h speed limit, rather than excessive Freeway grade lighting”.

 

Council resolved (C2008/090) that the petition be received and referred to the CEO to prepare a report for the Council.  This report is provided as per the resolution.

BACKGROUND

Diamante Boulevard and Princeville Avenue are located in Dunsborough Lakes, Dunsborough. These two roads are located within stages 18, 19 and 20 of the development. These stages were cleared for title release during 2017 and 2018. All infrastructure, i.e. roads, stormwater, sewer, water, electricity (including street lighting), communication and public open spaces, etc. were completed and have been handed over to the various agencies, including the City of Busselton. The street lights are Western Power assets, under the care and control of Western Power.

 

Attachment A is an aerial image of Diamante Boulevard and Princeville Avenue showing the location of the “affected” properties and the location of the street lights. Attachment B shows the street view image of Diamante Boulevard and Commonage Road and the position of the street lights. 

 

Diamante Boulevard and Princeville Avenue are classified as a ‘Local Distributor’ road.

OFFICER COMMENT

Diamante Boulevard and Princeville Avenue street lighting was designed according to the Australian Standards ‘AS 1158 – 2005 Lighting for roads and public spaces’ (AS1158-2005).

 

The design detail required, as per AS1158–2005, is for the P3 Lighting Category, as follows:

1.         A horizontal illuminance level of 0.3 Lux – achieved.

2.         Ends of medians to be lit to 3.5 Lux – achieved.

3.         Location of lights to correspond to off-sets from intersections and T-junctions – achieved.

 

The P3 Lighting Category is derived from AS1158 -2005 lighting for roads and public spaces – Part 3.1: Pedestrian area (Category P) lighting – Performance and design requirements.

 

The definition of Category P lighting is:

“Lighting that is applicable to roads and other outdoor public spaces on which the visual requirements of pedestrians are dominant, e.g. local roads, outdoor shopping precincts and outdoor car parks.”

 

 

Why was Diamante Boulevard and Princeville Avenue classified as a P3 lighting category in terms of AS1158–2005?

 

i.          Both Diamante Boulevard and Princeville Avenue are classified as Local Distributor Roads, in terms of Main Roads Western Australia road hierarchy classification. A ‘Local Distributor – Urban – (Built Up Area)’ is defined by Main Roads WA as follows:

“Roads that carry traffic within a cell and link District Distributors or Regional Distributors at the boundary, to access roads. The route of Local Distributors should discourage through traffic so that the cell formed by the grid of District Distributors only carries traffic belonging to, or serving the area. These roads should accommodate buses, but discourage trucks.”

 

ii.         Both Diamante Boulevard and Princeville Avenue have footpaths.

 

iii.        Both Diamante Boulevard and Princeville Avenue are carriageways with two lanes, divided a median island that requires lighting in accordance with of AS1158 -2005.

 

iv.        Referring to Table 2.1 of AS1158 -2005 - Lighting Categories for Road Reserves in Local Areas. Both Diamante Boulevard and Princeville Avenue are classified under the General description as  - “Collector roads or non-arterial roads which collect and distribute traffic in an area, as well as serving abutting properties”.- In terms of the Selection Criteria – “Pedestrian/Cycle activity” – has been classified as Medium – “Risk of crime” – has been classified as Low and – “Need to enhance prestige” – was classified as Medium – that gives an overall – “Applicable lighting subcategory” of P3.

 

It must be noted that not all Local Distributor Roads will be classified the same – it will depend on the three selection criteria attributes listed above – “ Pedestrian/cycle activity”, “Risk of Crime” and “Need to enhance prestige”.  These could vary the results from a P1 to a P4.

 

City officers have confirmed with the electrical engineers for the current Dunsborough Lakes Developer that the street lighting has been designed and constructed to the relevant standard.   City officers further requested the electrical engineer to consider the following options and provide cost estimates of each, as outlined below.

 

Option 1 - Provide appropriate glare shields

Installation of glare shields will result in cutting the light off at the property boundaries, with the light to be directed at the roadways only.

 

This will reduce the light impact on the actual home frontages while still maintaining a high level of light output on the roadway, and is an accepted practice by Western Power for the reduction of light spill. 

 

While cheaper than option two below, there are costs associated, estimated at $32,000 for eight double outreach street lights ($4,000 each). The City has in the past facilitated requests from residents for such modifications with Western Power. In all instances, given that the lights have originally met AS1158-2005, the residents have been responsible for the cost of the modifications.  In this instance, based on 26 properties, the cost per property would be $1,300.      

 

 

Option 2 – Replace the existing luminaires with 3000k luminaires which provide a softer light

Replacing the existing luminaires with 3000k luminaires will provide the same lumen output as the current lights, but the “look and feel” is of a warmer light, creating a perception of less light and brightness.  The light fitting is still compliant with AS1158-2005 – P3 Lighting Category.

 

The costs of this option are however significant, estimated at $64,000 to modify the 8 double outreach street lights along Diamante Boulevard and Princeville Avenue.

 

Option 3 – Plant additional trees in strategic locations to shield light spillage

The engineers have advised that the existing street trees in the medians along Diamante Boulevard and Princeville Avenue are still relatively small and that, as they grow, they will block out some of the light. They have recommended that Council consider strategically installing more street trees in front of affected residents. 

 

While environmentally friendly this is a much more long term option in terms of effectiveness. The cost of this option is estimated at $9,100, based on 26 trees, one per property, plus some additional ongoing maintenance costs.

 

Option 4 – Do nothing

It is open to Council to do nothing with the lights having been designed to meet relevant Australian Standards for the type of road. The lights also contribute to the provision of a safe and secure neighbourhood, and reducing the light spill could adversely impact on that.

 

As outlined in the Consultation section of this report, City officers have consulted with the petitioners, and, based on that consultation, are recommending that Council adopt this option, and not make any changes to the lights.

Statutory Environment

The Officer Recommendation supports the general function of a local government under the Local Government Act 1995 to provide for the good government of persons in its district.

Relevant Plans and Policies

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

Financial Implications

The estimated cost of the various options are outlined in the Officer Comment section of this report and summarised below. The officer recommendation, which is to do nothing, will result in no financial implications. There is currently no allocated budget for Options 1, 2 or 3 in the 20/21 Financial Year Budget.

 

Option	Estimated Total Cost
Option 1 – Provide glare shields	$32,000
Option 2 – Replace luminaries with 3000k luminaries	$64,000
Option 3 – Plant additional trees	$9,100
Option 4 – Do nothing	$0

Stakeholder Consultation

City officers met with Jody Lang, acting as the representative of the residents of Diamante Boulevard and Princeville Avenue, and provided a summary of the various options outlined in this report, including that the property owners would be required to contribute to the cost of any modifications.   A follow up email summarised the options discussed.

 

Feedback was received via email from Jody Lang advising that the residents are not willing to contribute towards the cost of any changes to the current lighting.  An excerpt from the response is included below:

“As discussed at the meeting, residents will not be willing to accept the cost for light shields (Option 1). Residents had no input for the existing lighting and pay rates.

We will be agreeable for the council to accept the costs for light shields to make the lighting more residentially friendly and in keeping with the natural environment.”

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, Council could decide to:-

·   Proceed with option 1 - Provide glare shields at the City’s cost, allocating a budget amount of $32,000 in 2021/22.  This is not recommended as in all previous instances residents have been responsible for the cost of requested modifications.

·   Proceed with option 2 - Replace the existing luminaires with 3000k luminaires at the City’s cost, allocating a budget amount of $64,000 in 2021/22. This is not recommended as in all previous instances residents have been responsible for the cost of requested modifications.

·   Proceed with option 1 or 2, subject to the residents agreeing to meet half of the costs, with the balance budgeted for 2021/22. 

·   Proceed with planting additional trees at the City’s cost (option 3).

CONCLUSION

This report considers the concerns of residents of Diamante Boulevard and Princeville Avenue, as presented in the petition received by Council at its ordinary meeting 25 August 2020. Officers have presented a number of options and, after consultation with the residents, recommend that the Council make no changes to the lights.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The implementation of the Officer Recommendation will be actioned immediately.