COB-RGB

 

 

 

 

Council Agenda

 

 

 

23 June 2021

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 23 June 2021

 

 

 

TO:                  THE MAYOR AND COUNCILLORS

 

 

NOTICE is given that a meeting of the Council will be held in the Council Chambers, Administration Building, Southern Drive, Busselton on Wednesday, 23 June 2021, commencing at 5.30pm.

 

Your attendance is respectfully requested.

 

 

DISCLAIMER

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

 

 

 

Mike Archer

 

CHIEF EXECUTIVE OFFICER

 

11 June 2021


CITY OF BUSSELTON

Agenda FOR THE Council MEETING TO BE HELD ON 23 June 2021

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

1....... Declaration of Opening, ACKNOWLEDGEMENT OF COUNTRY and Announcement of Visitors. 5

2....... Attendance. 5

3....... Prayer. 5

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

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

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

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

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

Previous Council Meetings. 5

8.1          Minutes of the Council Meeting held 9 June 2021. 5

Committee Meetings. 6

8.2          Minutes of the Finance Committee Meeting held 9 June 2021. 6

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

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

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

12..... Reports of Committee. 7

12.1        Finance Committee - 9/6/2021 - LIST OF PAYMENTS MADE - APRIL 2021. 7

12.2        Finance Committee - 9/6/2021 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 APRIL 2021. 19

12.3        Finance Committee - 9/6/2021 - BUDGET AMENDMENT REQUEST - ENGINEERING AND WORKS SERVICES. 62

13..... Planning and Development Services Report. 65

13.1        AMENDMENT NO. 48 TO LOCAL PLANNING SCHEME NO. 21 (PORTION OF LOT 1 NO. 99 CAUSEWAY ROAD, BUSSELTON) - CONSIDERATION FOR ADOPTION FOR FINAL APPROVAL. 65

14..... Engineering and Work Services Report. 96

14.1        PROPOSAL TO DEDICATE A PORTION OF PEDESTRIAN ACCESS WAY, LOT 55 ABBEYS FARM ROAD YALLINGUP, AS PUBLIC ROAD.. 96

14.2        RFT 06/21 CONSTRUCTION OF THE BUSSELTON PERFORMING ARTS AND CONVENTION CENTRE (BPACC). 104

14.3        RFT 10/21 DESIGN, SUPPLY OF EQUIPMENT AND UPGRADE OF NINE PUBLIC OPEN SPACE AREAS: APPOINTMENT OF SUCCESSFUL TENDERER. 110

15..... Community and Commercial Services Report. 127

15.1        BUSSELTON FORESHORE - CAROUSEL GROUND LEASE. 127

15.2        DESIGNATED AREA MIGRATION AGREEMENT - SOUTH WEST REGION.. 134

16..... Finance and Corporate Services Report. 140

16.1        CITY OF BUSSELTON COMMUNITY ENGAGEMENT FRAMEWORK. 140

16.2        APPLICATION FOR RATE EXEMPTION - SENSES AUSTRALIA.. 193

17..... Chief Executive Officers Report. 203

17.1        COUNCILLORS' INFORMATION BULLETIN.. 203

18..... Motions of which Previous Notice has been Given.. 212

19..... urgent business. 212

20..... Confidential Matters. 212

21..... Closure. 212

 


Council                                                                                      6                                                                        23 June 2021

1.               Declaration of Opening, ACKNOWLEDGEMENT OF COUNTRY and Announcement of Visitors

 

2.               Attendance 

Apologies

 

Approved Leave of Absence

 

Nil

 

3.               Prayer

 

4.               Application for Leave of Absence

 

5.               Disclosure Of Interests

 

6.               Announcements Without Discussion

Announcements by the Presiding Member

 

7.               Question Time For Public

Response to Previous Questions Taken on Notice

Public Question Time For Public

 

8.               Confirmation and Receipt Of Minutes 

Previous Council Meetings

8.1             Minutes of the Council Meeting held 9 June 2021

Recommendation

That the Minutes of the Council Meeting held 9 June 2021 be confirmed as a true and correct record.

 

Committee Meetings

8.2             Minutes of the Finance Committee Meeting held 9 June 2021

Recommendation

That the Minutes of the Finance Committee Meeting held 9 June 2021 be noted.

 

9.               RECEIVING OF Petitions, Presentations AND DEPUTATIONS

Petitions

Presentations

Deputations

 

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

 

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


Council                                                                                      8                                                                         23 June 2021

12.             Reports of Committee

12.1           Finance Committee - 9/6/2021 - LIST OF PAYMENTS MADE - APRIL 2021

STRATEGIC THEME

LEADERSHIP - A Council that connects with the community and is accountable in its decision making.

STRATEGIC PRIORITY

4.5 Responsibly manage ratepayer funds to provide for community needs now and in the future.

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 is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   List of Payments - April 2021

 

This item was considered by the Finance Committee at its meeting on 9/6/2021, the recommendations from which have been included in this report.

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

That the Council notes payment of voucher numbers M118738 – M118787, EF078630 – EF079165, T7551 – T7558, DD004447 – DD004474, as well as payroll payments, together totalling $7,826,699.05.

 

EXECUTIVE SUMMARY

This report provides details of payments made from the City’s bank accounts for the month of April 2021, 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, a list of payments made is prepared each month for presentation to, and noting by, the Council.

OFFICER COMMENT

In accordance with regular custom, the list of payments made for the month of April 2021 is presented for information. 

Statutory Environment

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

Relevant Plans and Policies

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

Financial Implications

There are no financial implications associated with the officer recommendation.

Stakeholder Consultation

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

Risk Assessment

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

Options

Not applicable.

CONCLUSION

The list of payments made for the month of April 2021 is presented for information.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Council

10

23 June 2021

12.1

Attachment a

List of Payments - April 2021

 











Council                                                                                      42                                                                      23 June 2021

12.2           Finance Committee - 9/6/2021 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 APRIL 2021

STRATEGIC THEME

LEADERSHIP - A Council that connects with the community and is accountable in its decision making.

STRATEGIC PRIORITY

4.5 Responsibly manage ratepayer funds to provide for community needs now and in the future.

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 budgets, strategies, plans and policies (excluding local planning policies); funding, donations and sponsorships; reviewing committee recommendations

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Financial Activity Statement - April 2021

Attachment b    Investment Report - April 2021

 

This item was considered by the Finance Committee at its meeting on 9/6/2021, the recommendations from which have been included in this report.

 

Committee RECOMMENDATION and Officer Recommendation

That the Council receives the statutory financial activity statement reports for the period ending 30 April 2021, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations.

 

EXECUTIVE SUMMARY

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

 

This report has been compiled to fulfil the statutory reporting requirements of the Act and associated Regulations, whilst also providing the Council with an overview of the City’s financial performance on a year to date basis for the period ending 30 April 2021.

 

BACKGROUND

The Regulations detail the form and manner in which financial activity statements are to be presented to the Council on a monthly basis, and are to include the following:

·        Annual budget estimates

·        Budget estimates to the end of the month in which the statement relates

·        Actual amounts of revenue and expenditure to the end of the month in which the statement relates

·        Material variances between budget estimates and actual revenue/expenditure (including an explanation of any material variances)

·        The net current assets at the end of the month to which the statement relates (including an explanation of the composition of the net current position)

 

 

Additionally, and pursuant to Regulation 34(5) of the Regulations, a local government is required to adopt a material variance reporting threshold in each financial year. At its meeting on 27 July 2020, the Council adopted (C2007/071) the following material variance reporting threshold for the 2020/21 financial year:

That pursuant to Regulation 34(5) of the Local Government (Financial Management) Regulations, the Council adopts a material variance reporting threshold with respect to financial activity statement reporting for the 2020/21 financial year as follows:

·        Variances equal to or greater than 10% of the year to date budget amount as detailed in the Income Statement by Nature and Type/Statement of Financial Activity report, however variances due to timing differences and/or seasonal adjustments are to be reported only if not to do so would present an incomplete picture of the financial performance for a particular period; and

·        Reporting of variances only applies for amounts greater than $25,000.

OFFICER COMMENT

In order to fulfil statutory reporting requirements and to provide the Council with a synopsis of the City’s overall financial performance on a year to date basis, the following financial reports are attached hereto:

Statement of Financial Activity

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

Net Current Position

This report provides details of the composition of the net current asset position on a full year basis, and reconciles with the net current position as per the Statement of Financial Activity.

Capital Acquisition Report

This report provides full year budget performance (by line item) in respect of the following capital expenditure activities: 

·        Land and Buildings

·        Plant and Equipment

·        Furniture and Equipment

·        Infrastructure

Reserve Movements Report

This report provides summary details of transfers to and from reserve funds, and associated interest earnings on reserve funds, on a full year basis.

 

Additional reports and/or charts are also provided as required to further supplement the information comprised within the statutory financial reports.

Comments on Financial Activity to 30 April 2021

The Statement of Financial Activity (FAS) for the year to date (YTD) shows an overall Net Current Position of $8.4M as opposed to the amended budget of ($5.1M). This represents a positive variance of $13.5M YTD.  This variance increased by $1.5M from $12M at the end of March.  

 

The following table summarises the major YTD variances that appear on the face of the FAS, which, in accordance with Council’s adopted material variance reporting threshold, collectively make up the above difference.  Each numbered item in this lead table is explained further in the report.

 

Description

2020/21
Actual YTD

$

2020/21
Amended
Budget YTD

$

2020/21
Amended
Budget

$

2020/21
YTD Bud Variance

%

2020/21
YTD Bud Variance

$

Change in Variance Current Month

$

Revenue from Ordinary Activities

 

3.66%

2,637,870

573,602

1.    Operating Grants, Subsidies and Contributions

5,047,728

3,616,107

4,782,445

39.59%

1,431,621

295,366

2.    Other Revenue

494,626

320,827

424,730

54.17%

173,799

65,073

Interest Earnings

820,068

932,220

1,046,684

(12.03%)

(112,152)

(34,391)

Expenses from Ordinary Activities

 

7.04%

4,632,341

485,930

4.    Materials & Contracts

(11,349,062)

(14,653,919)

(18,067,582)

22.55%

3,304,856

232,393

5.    Other Expenditure

(1,908,485)

(3,201,780)

(5,236,779)

40.39%

1,293,295

78,972

6.    Non-Operating Grants, Subsidies and Contributions

5,320,021

11,931,958

34,437,199

(55.41%)

(6,611,937)

(2,211,102)

Capital Revenue & (Expenditure)

 

19.91%

8,488,409

2,542,385

7.    Land & Buildings

(3,256,821)

(7,264,733)

(17,454,059)

55.17%

4,007,912

1,397,235

Plant & Equipment

(1,188,999)

(2,437,620)

(2,510,340)

51.22%

1,248,621

(274,252)

Furniture & Equipment

(266,819)

(451,088)

(461,088)

40.85%

184,269

(9,182)

Infrastructure

(15,162,224)

(28,497,110)

(40,057,700)

46.79%

13,334,886

754,980

8.    Proceeds from Sale of Assets

339,756

581,500

581,500

(41.57%)

(241,744)

54,715

9.    Proceeds from New Loans

0

7,700,000

7,700,000

(100.00%)

(7,700,000)

0

10.  Repayment of Capital Lease

(459,640)

(521,901)

(521,900)

11.93%

62,261

130,513

11.  Advances to Community Groups

0

(200,000)

(200,000)

100.00%

200,000

0

12.  Transfer to Restricted Assets

(5,292,020)

(45,840)

(62,750)

(11444.55%)

(5,246,180)

(131,948)

13.  Transfer from Restricted Assets

2,582,482

1,060,917

2,807,074

143.42%

1,521,565

(573,960)

14.  Transfer from Reserves

6,780,943

5,748,307

34,821,501

17.96%

1,032,636

1,338,543


Revenue from Ordinary Activities

In total, revenue from Ordinary Activities is $2.6M, or 3.7%, ahead of budget YTD.  The material variance items contributing to this include:

 

1.     Operating Grants, Subsidies and Contributions

Ahead of YTD budget by $1.4M, or 39.6%, mainly due to the items listed in the table below:

Revenue Code

Revenue Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Finance and Corporate Services

1,392,700

1,345,814

46,885

3.37%

8,834

10510

Governance Support Services – State Government Operating Grants

 -

17,000

(17,000)

(100.00%)

(1,700)

Each year the City takes on a disability trainee. At the time of setting the budget, it is not known where this person may be placed, so the reimbursement from the State Government is budgeted in this area. The trainee was actually placed at the GLC, with all associated actual wage costs and reimbursements allocated to this area.

10152

Other General Purpose Funding – Financial Assistance Grants

1,068,089

1,046,161

21,928

2.05%

 -

Actual grants received are slightly higher than originally budgeted. The Grants Commission always advises the exact amounts to be received well after budget adoption.

10200

Financial Services – Reimbursements – Insurance

133,047

104,550

28,497

21.42%

2,141

The second instalment of the LGIS Contributions Assistance Package was due to be received in November, but instead a credit note received from LGIS was offset against scheme policies that were due for payment in early December, at their instruction.

10522

Occupational Health & Safety – Reimbursement – Wellness Program

5,280

20,830

(15,550)

(294.51%)

(2,083)

Due to COVID restrictions in the first half of the financial year a number of programs were either not able to proceed or were undersubscribed.  With the relaxing of restrictions and returning confidence, staff participation in the various Wellness activities has increased, however it is unlikely that the full budget will be achieved by year end. 

Community and Commercial Services

313,243

233,004

80,239

25.62%

65,437

10540

Recreation Administration – State Government Operating Grants

31,736

16,670

15,066

47.47%

28,333

There have been delays in receiving grant deeds from the relevant State Government department. The applications that have been approved are expected to derive approximately $30K by the end of May 2021, which is in excess of the total amount budgeted for the year of $20K.

B1361

YCAB (Youth Precinct Foreshore) – State Government Operating Grants

30,138

13,750

16,388

54.38%

9,588

Additional unbudgeted Crime Prevention Grant received from WA Police to run the Choices Program.


 

11151

Airport Operations – Contributions

85,000

50,000

35,000

41.18%

31,000

More contributions toward airport marketing have been received from neighbouring local governments than was originally anticipated.

10530

Events & Cultural Services Administration – Parenting Leave Reimbursements

14,655

 -

14,655

100.00%

 -

Parenting leave reimbursement was not planned at the time of the development of the 20/21 budget.

10630

Economic and Business Development Administration – Parenting Leave Reimbursements

9,059

 -

9,059

100.00%

 -

Parenting leave reimbursement was not planned at the time of the development of the 20/21 budget.

Planning and Development Services

940,760

1,039,484

(98,724)

(10.49%)

(12,678)

10820

Strategic Planning – State Government Grants

 -

37,500

(37,500)

(100.00%)

 -

The variation from Strategic Planning budget (Grant $37,500) is due to the total grant ($75,000) being acquitted in two instalments: a 50% payment was received some time ago on achievement of certain project milestones to that stage in the preparation of the ‘Coastal Adaptation Strategy’ or CHRMAP, ‘Coastal Hazard Risk Management and Adaptation Plan’. The final 50% is due to be paid to the City upon Government endorsement of the final CHRMAP. Preparation of this complicated and comprehensive document has been set back several times over the past 2 years due to project requirements concerning financial modelling and Government Working Group reviews et al. As such, the City has received approval to extend the anticipated completion date for the project (this has occurred several times) until September 2021 (and it may require even longer). At the moment, it is expected to report on the draft CHRMAP to OCM 24 February, then, if approved, put out for public information/comment for 2-3 months. Then will need to be finalised etc. The $37,500 final grant payment will therefore not be paid until FY 21/22.

10830

Environmental Management Administration – State Government Grants

18,780

 -

18,780

100.00%

 -

Grant received in two lots in September and December, however it was budgeted to be received in June.

10925

Preventative Services – CLAG – State Government Grants

32,038

44,370

(12,332)

(38.49%)

 -

The Department of Health contribution to the mosquito program was less than expected.

10940

Fire Prevention DFES – Contributions

21,203

79,900

(58,697)

(276.83%)

(19,984)

The $21K received relates to the last quarter of the 19/20 year. The half yearly reconciliation (for quarters 1 & 2 of the 20/21 year) of the CESM role with DFES remains outstanding and is in progress. 

Engineering and Works Services

2,401,026

997,805

1,403,221

58.44%

234,773

S0076

Kaloorup Road (Stage 1) – Main Roads Operating Grant

 -

267,000

(267,000)

(100.00%)

(267,000)

Works originally budgeted to be completed by April are forecast to be complete in June, however grant acquittal and invoicing cannot be finalised until all billing has been processed and a final reconciliation of works has been completed and signed off.

11160

Busselton Jetty – Contributions

842,772

429,700

413,072

(100.00%)

421,386

The second half yearly contribution was budgeted to be received in June, however it was received in April.


 

11161

Busselton Jetty – Interpretive Centre – Reimbursements

20,258

 -

20,258

100.00%

17,620

There was an incorrect re-allocation of the insurance reimbursement for damage to the UPS at the underwater observatory in April. This will be corrected in May.

11162

Busselton Jetty - Underwater Observatory – Reimbursement of Utilities Charges

10,472

 -

10,472

100.00%

 -

The City recoups both electricity and sewer service charges from Busselton Jetty Inc. Due to an administrative oversight, this item has not been budgeted, however there is a nil impact on the municipal net current position due to this income being put into the Jetty reserve.  This offsets the costs which are also put into the reserve.

11300

Sanitation Waste Services  Administration – Parenting Leave Reimbursements

13,570

 -

13,570

100.00%

2,714

Parenting leave reimbursement was not planned at the time of the development of the 20/21 budget.

11301

Regional Waste Management Administration – Reimbursements

95,919

18,330

77,589

80.89%

46,128

The contributions to the 2020/21 Southwest Regional Waste Group Project were received from 10 participating local governments in November and April, totalling $48K each time.  Only $22K was budgeted for the year, and this was spread over 12 months.

11501

Operations Services Works – Insurance Reimbursements

225,008

51,000

174,008

77.33%

19,295

Workers compensation claims totalling $225K have been received YTD. This is by nature very difficult to predict. $61K was budgeted for the year, spread evenly over 12 months.

B1401 & B9610

Old Butter Factory – Insurance Reimbursements

149,415

 -

149,415

100.00%

 -

Conservation and fire damage works now completed. Insurance claim has now been approved and paid.  Not budgeted as additional works were required for structural and fire compliance that had not been scoped at commencement of the works. Not unusual for conservation projects of this nature. Net impact after insurance claims is estimated at approximately ($30K).

M9999

Road Maintenance Bal Of Budget – Insurance Reimbursements

778,013

 -

778,013

100.00%

 -

Storm damage claims from the storm events in May 2020.

 

2.      Other Revenue

Ahead of YTD budget by $174K, or 54.2%, mainly due to the items listed in the table below:

Revenue Code

Revenue Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Finance and Corporate Services

42,817

29,220

13,597

46.53%

11,982

10200

Financial Services – Sundry Income

9,568

180

9,388

5215.56%

9,423

Due to workload issues and a change in staff in Planning, there was a delay in on-payment of a development application fee to the Department of Planning for a fee received from an applicant in April. This will be rectified in June.

Community and Commercial Services

40,143

5,350

34,793

650.34%

(2,414)

10591

Geographe Leisure Centre – LSL Contributions from other LG’s

18,132

 -

18,132

100.00%

 -

Long Service Leave entitlements accrued can be transferred between local governments. This receipt was budgeted for in June, however it was received earlier than expected.

10625

Art Geo Administration –

Sale of Artworks

7,327

 -

7,327

100.00%

(2,018)

The distribution of the proceeds of artwork sales on behalf of the artists is done in the month following the sales after the monthly reconciliation process.

10630

Economic and Business Development Administration – LSL Contributions from other LG’s

9,738

 -

9,738

100.00%

 -

Long Service Leave entitlements accrued can be transferred between local governments. At the time of budgeting, it was not known that the City would be employing a person for whom a LSL entitlement would be transferred.

Planning and Development Services

184,759

117,290

67,469

57.52%

(6,367)

10925

Preventative Services –

CLAG – Sundry Income

77,336

3,400

73,936

2174.59%

(320)

Due to the much earlier and more significant onset of the Ross River Virus threat, extra chemical applications were required. Permission was received from the Department of Health to draw extra trust funds for these purposes.

10970

Parking Control –

Parking Fines & Costs

30,027

50,000

(19,973)

(39.95%)

(3,119)

Budgeting for this is always done on a simple historical trend basis, and is never a targeted revenue source.  It is down on budget due to the enforcement team being temporarily understaffed.

Engineering and Works Services

226,908

168,967

57,941

34.29%

61,873

11107

Engineering Services Design – LSL Contributions from other LG’s

14,475

 -

14,475

100.00%

 -

Long Service Leave entitlements accrued can be transferred between local governments. At the time of budgeting, it was not known that the City would be employing a person for whom a LSL entitlement would be transferred.

G0030

Busselton Transfer Station – Sale of Scrap Materials

123,884

87,590

36,294

41.44%

32,614

The process received for scrap metal has been significantly higher than originally forecast.  As such, higher than predicted volumes have also been delivered to the recyclers to take advantage of this pricing.

 

3.      Interest Earnings

Interest earnings is $112K, or 12%, behind budget YTD April due to the much lower than forecast interest rates.

 

The current low interest rate environment will reduce the City’s income in both the current budget period and future years.

 

Expenses from Ordinary Activities

Expenditure from ordinary activities is $4.6M, or 7%, less than expected when compared to the budget YTD as at April. The following individual expense line items on the face of the financial statement have YTD variances that meet the material reporting thresholds:

4.      Materials and Contracts

Better than budget by $3.3M, or 22.6%. The table below lists the main items contributing to this variance:

Cost Code

Cost Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Finance and Corporate Services

1,709,349

1,961,470

252,121

12.9%

79,372

10151

Rates Administration

189,907

267,170

77,263

28.9%

2,145

The variance is predominantly due to the under spend in consultancy. This budget was for the Rating Review Project, funded by reserves. The project has been delayed due to resourcing issues in the Rates team, plus communications with the Minister regarding rates reviews that have changed the scope of the project.  Unspent funds will remain carried forward in the reserve to fund the revised project.

10200

Financial Services

38,989

68,179

29,190

42.8%

5,011

Due mainly to a reduction in bank fees that were budgeted at a higher amount, plus none of the consultancy budget has been used YTD. This will potentially be used later in the financial year in relation to adoption of new accounting standards, plus updates to the Long Term Financial Plan model.

10250

Information & Communication Technology Services

1,041,586

1,128,832

87,246

7.7%

76,196

·        Software licences –The City’s licences still are on track to go over budget this year with the addition of some unplanned software; invoices for this will be processed in June.

·                Photocopying – As mentioned in Customer Service below, the printer costs are routing through this account hence the budget overspend.

·                GIS costs – It was planned to use a new image provider at a reduced cost, unfortunately they could not provide what was agreed upon and the City continued to use Landgate. This will be adjusted for next budget.

·                Contractors (including contract staff) – By end of year there will be a $100,000 underspend due to the budgeted contractor being engaged as an employee. This was originally funded from reserve.

10360

Customer Services

19,535

39,360

19,825

50.4%

2,730

·        Photocopying – The Finance team going paperless has had a significant impact on the City’s paper spend, especially for coloured paper. In addition, an arrangement has been made with the Executive Assistants for auditing of the stationery supplies in their departments, so ordering has more closely aligned to needs rather than maintaining large stores.

·        Computer Consumables – Historically, printer cartridges etc. came from this bucket. With the adoption of more printers using a full supply contract this account is not being utilised. The City still orders some cartridges manually but the number is heavily reduced. This will be reviewed during the upcoming budget considerations for 21/22 to get a better idea of actual spend.

10500

Legal & Compliance Services

109,456

51,150

(58,306)

(114.0%)

(15,020)

Greater than expected spend of external legal representation (largely due to increase in prosecutions/compliance action plus a Supreme Court matter). It was acknowledged when the legal budget was set last year that a transfer from the legal reserve may be required. A budget amendment to this effect was endorsed by the Council in May and will be included in the May financial activity statements.

10521

Human Resources & Payroll

30,610

50,130

19,520

38.9%

3,063

The variance is timing related, with consultancy funds related to the organisational staff survey yet to be expended. Procurement is complete with invoicing expected to be processed in May 2021.

10616, 10617 & 10618

Aged Housing

74,170

118,010

43,840

37.1%

4,410

Lower than expected maintenance costs to the end of the reporting period.  Less reactive maintenance for FY to date.

Community and Commercial Services

1,122,524

1,850,001

727,477

39.3%

9,781

10380

Busselton Library

51,163

100,377

49,214

49.0%

3,079

·                Non-capital Furniture & Office Equipment – Offsets an overspend in 7743 due to capitalisation of shelving/furniture purchases. (Purchase Order 49449 raised, $6,063 deposit has been paid, with the remaining funds in process of being rolled over into the 2021/22 budget).

·                Contractors (including contract staff) - $8,000 underspend to offset $8,000 grant income not received (Be Connected Grant).

·                Entity Specific Consumables – The coffee machine has been disposed of, which means that there will be no expenditure, and no offset income.

10381

Dunsborough Library

19,695

31,840

12,145

38.1%

2,055

·                Contractors – Currently chasing up annual carpet cleaning with Facilities who have now assumed responsibility for scheduling annual carpet cleaning).

·                Other Computer costs - $1,800 networking costs no longer required.

·                Photocopying – centralised purchases have not been allocated correctly.

·                Library Resources – expenditure has increased and monies will be spent (annual expenditure patterns were delayed due to RFQ process earlier in the year).

10540

Recreation Administration

10,470

40,970

30,500

74.4%

2,048

The City’s application to the State Government for the 2021 & 2022 Every Club grants was successful. Grant deeds have been received and executed. It is envisaged that $15K of the $30K that has been invoiced will need to be rolled into next FY to fund the new Community and Recreation service trainee and the remaining $15K will be expended on delivering the program through workshops.

10541

Recreation Planning

1,850

135,583

133,733

98.6%

19,167

Timing of expenditure was awaiting the outcomes of external grant applications. During February grant deeds were finalised, however the scope of work will not be finalised with the preferred consultant until June. It is estimated that this will absorb approximately $70K of the underspend variance by EOFY.

10590

Naturaliste Community Centre

46,434

82,222

35,788

43.5%

(1,833)

Variance primarily due to line items below being underspent with explanations:

·                Photocopying – $2.25K this budget allowance has been offset by IT as an expense within their budget.

·                Licence Fees - $4.3K underspend, likely to remain at approximately $3.5K by EOFY.

·                Contractors – $9.3K underspend, pending storage works commencing/completion at NCC in June to expend this area.

·                Holiday Program – $7.3K underspend, likely to result in $5K underspend due to reduced program this year.

·                Leisure Program Activities – $1.4K underspend, this will be expended by EOFY.

Overall anticipate an underspend in this area of approximately $11K by EOFY, but will know more once May EOM figures are finalised.


 

10591

Geographe Leisure Centre

247,642

307,052

59,410

19.3%

201

Variance primarily due to line items below being underspent with explanations:

·                Building Maintenance Services & Contractors – $21K underspend, delay in securing contractors to do works required – will know more once May EOM financials are finalised.

·                Garden Maintenance – $1.1K underspend, invoice timing.

·                Swimming Pool Maintenance/Repairs – $5K underspend likely to remain if no breakdown of equipment in June.

·                Photocopying – $8.5K this budget allowance has been offset by IT as an expense within their budget so will not be expensed.

·                Printing – $2.8K – this will be expended.

·                License Fees – $8.6K underspend, likely to be $4K underspend by EOFY due to cancelled Crossfit licence.

·                Non-Capital Furniture & Office Equipment – $9.6K underspend, pending works likely to expend this by EOFY.

·                Holiday Program – $2.3K underspend, will be expensed for items for July program.

·                Leisure Program Activities – $5.6K underspend, this will be expended by EOFY.

It is anticipated that there will be an overall underspend in these areas by the EOFY.

10600

Busselton Jetty Tourist Park

397,694

484,180

86,486

17.9%

1,456

The variance can be attributed to two outstanding monthly management fee invoices ($41,125 – runs one month in arrears), due to presentation and payment of the invoice. Other expenditure that has not occurred falling within Materials & Contracts are related to non-scheduled maintenance, garden maintenance, purchase of materials, and savings in cleaning materials and disposal of waste fees.

10630

Economic and Business Development Administration

33,472

72,020

38,548

53.5%

(13,470)

The budget is made up of numerous line items that have been spread throughout the year. The actual timing for these things are inherently difficult to predict, as more often than not they depend on interactions with outside third parties for development opportunities and collaborations. For example, the City budgets for advertising and marketing, but need to wait for relevant opportunities to arise throughout the year that may not necessarily align with budget timing.

10980

Other Law, Order & Public Safety

 -

149,792

149,792

100.0%

 -

The payment to Surf Lifesaving WA has been delayed.  The Deed of Service has been finalised and payment is expected in May.

11151

Airport Operations

174,740

267,611

92,871

34.7%

(4,957)

The budget variance YTD includes the key allocations of:

·                security screening of $45K not spent

·                car park design, signage, line marking, repairs and maintenance of approximately $28K

The remainder of the variance relates to commitments for:

·                COVID screens $6,500

·                apron lighting repairs of approximately $3K

·                general grounds maintenance and improvements of approximately $4K

·                technical inspections $5,500

B1361

YCAB (Youth Precinct Foreshore)

33,101

47,390

14,289

30.2%

(3,948)

Operating grants forecast were not available as planned and therefore associated expenditure has not occurred. Alternative funding was sourced to run a program in Dunsborough which commenced in February and March.  Full invoicing for these activities has not as yet been received, and is also not expected to come in as high as what was originally forecast based on the grant funding.

Planning and Development Services

955,057

1,710,042

754,985

44.2%

(9,179)

10810

Statutory Planning

15,576

28,370

12,794

45.1%

2,730

Not possible to predict when consultancy services will be required in advance.  In this case, funds have been committed (heritage and traffic advice) but invoices not received.   

10820

Strategic Planning

156,930

202,020

45,090

22.3%

16,920

Estimated revenues (re-zonings, structure plans) and anticipated consultant contracts (for specialised works seen as likely to be needed for scheduled City projects) are often quite difficult to predict as they are subject to third-party intentions and initiatives, or competing demands and task allocation/prioritisation at the City.

10830

Environmental Management Administration

286,465

468,975

182,510

38.9%

(21,680)

Expenditure variance due to:

·                Timing of Barnard Park East management plans contract, due April 2021, pending completion of upgrade works;

·                Lower Vasse River sediment removal and groundwater investigations were delayed, now due May 2021; and

·                Carbunup reserve contaminated site investigations due May 2021.

10920

Environmental Health Services Administration

1,098

36,883

35,785

97.0%

6,199

There is an error in the timing of the YTD budget.  The full year for contractors is only $5K, however YTD shows $20K, as a budget credit of $15K was processed in June. The YTD variance for this whole area is actually $14,586. The reasons for this $14K underspend include the contractor allocation of $5K to implement audit outcomes being done in house, plus very minimal pre-summer assessments of sound level meters, revealing little to no faults requiring repair, due to 2020 COVID event cancellations.

10922

Preventative Services – Mosquitoes

18,774

35,311

16,537

46.8%

221

Spring and Autumn burning mitigation programs now complete with all expenses currently being reconciled. Mechanical mitigation program of approximately $80,000 commenced on Monday 3 May with invoicing for works completed expected to be received in the month of May. All funds expected to be spent by end of FY.

10925

Preventative Services – CLAG

119,098

57,830

(61,268)

(105.9%)

83

Due to the much earlier and more significant onset of the Ross River Virus threat, extra chemical applications, transport, etc. were required. Permission was received from the Department of Health to draw extra trust funds for these purposes (see positive variance in Other Income section above). Full reconciliation of the CLAG budget will occur by the end of the financial year.

10931

Protective Burning & Firebreaks –Reserves

83,738

453,240

369,502

81.5%

885

Spring and Autumn burning mitigation programs now complete with all expenses currently being reconciled. Mechanical mitigation program of approximately $80,000 commence on Monday 3rd May with invoicing for works completed expected to be received in the month of May. All funds expected to be spent by end of FY.

10942

Bushfire Risk Management Planning – DFES

155

11,580

11,425

98.7%

1,158

To be fully reconciled prior to the EOFY.

11170

Meelup Regional Park

70,496

161,549

91,053

56.4%

(707)

Expenditure variance due to timing of awarding Cultural Heritage Assessment (CHA) contract as part of the Meelup Regional Park Management Plan review. Initial request for services did not attract a suitable service provider, delaying the project. Contract for CHA awarded 20 April 2021.


 

B1010-B1028

Bushfire Brigades – Various

110,050

127,140

17,090

13.4%

(8,185)

Emergency operations dependent. YTD actuals vs budget will vary according to emergency operational requirements, and are inherently difficult to predict.

Engineering and Works Services

7,559,403

9,126,355

1,566,952

17.2%

1,299,670

12600

Street & Drain Cleaning

182,514

364,780

182,266

50.0%

36,478

Year to date expenditure for these services will begin to track back to budget in May and June pursuant to pre-rainy-season drain abduction works that commencing in mid to late April. These works ensure drains are free of debris to mitigate against flooding.  At time of writing this commentary a further $138k in work have already been receipted in May. This leaves $107K in ongoing works to be invoiced in the final month of June with these works ongoing. This budget is anticipated to be fully expended as at 30 June.

12620 & 12621

Rural & Urban Tree Pruning

141,929

315,000

173,071

54.9%

29,059

Expenditure for pruning and the removal of dead trees and debris was being withheld to the value of $247K to help offset storm damage clean-up costs incurred in relation to the May 2020 storm. A total of $403K in Contractor based clean-up costs were incurred post 30 June with these costs coded against the individual roads impacted. In February, it was confirmed that the City had secured storm claim reimbursement revenue, thus this budget is now available to be utilised. Contractor availability will now determine if the backlog of works can be completed by 30 June. It is anticipated that all of the annual budget will be utilised.

Various

Bridge Maintenance

21,819

151,010

129,191

85.6%

12,992

The year to date underspent variance associated with Building Maintenance increased by $86K in April to $136K. Scheduled maintenance activities on various buildings are in progress post the busy Easter holiday period. This is evidenced by the $143K in existing orders that represent either works underway or completed works pending receipt of an invoice from the supplier. This budget is anticipated to be fully expended as at 30 June.  

Various

Building Maintenance

1,047,374

1,184,230

136,856

11.6%

86,413

The year to date underspent variance associated with Building Maintenance increased by $86K in April to $136K. Scheduled maintenance activities on various buildings are in progress post the busy Easter holiday period. This is evidenced by the $143K in existing orders that represent either works underway or completed works pending receipt of an invoice from the supplier. This budget is anticipated to be fully expended as at 30 June.  

Various

Other Infrastructure Maintenance

1,035,408

1,444,249

408,840

28.3%

1,153,328

This category encompasses the consolidation of almost 100 individual Cost Codes representing a unique array of services delivered right across the City. It includes things like: event support; boat ramp maintenance; cemetery maintenance; maintenance at the Libraries and GLC; caravan park maintenance; street lighting installation; the foreshores; the CBD’s; cycleways and footpaths etc. The $408K YTD expenditure variance to budget at the end of April is mostly attributable to timing with the budget having been evenly spread across the financial year. At the time of writing this comment there are currently $406K in committed costs and a further $142K in costs that have been receipted. $40K of the Boat Ramp Maintenance budget will be utilised to notionally offset construction costs associated with Abbey beach groynes; thus this variance will remain as at 30 June.       


 

Various

Waste Services

1,754,944

2,219,340

464,396

20.9%

(46,625)

The YTD under expenditure to budget for Waste Services Consolidated is attributable to many factors including the following:

·                $101K under expended variance to budget associated with Contamination Site Contractor costs. Environmental based costs such as testing and monitoring were not known at the time of budget preparation; investigations are ongoing.

·                $100K under expended variance to budget associated with the Dunsborough Waste Site. The green waste stock pile will now be processed in the 2022 financial year contributing to this variance.

·                $97K under expended variance to budget associated with External Waste Disposal being gate house disposal costs at the Cleanaway Dardanup landfill.  Some of this is timing pending the receipt of the April monthly invoice.

·                $62K favourable variance associated with the postponement of the FOGO trail. These funds will net-off against the Waste Reserve with the year-end transfer of funds calculation.

Various

Roads Maintenance

889,853

364,780

(525,072)

(143.9%)

4,116

The higher than normal costs are largely associated with storm damage clean-up costs stemming from the May 2020 storm events, where there has been $403K in extraordinary Material & Contractor costs incurred against Road Maintenance. In February, the City was notified that it will be in receipt of reimbursements that effectively cover and offset against this overspend. The Road Maintenance budget is being carefully managed exclusive of storm-related costs that have been reimbursed.

Various

Reserve Maintenance

1,221,905

1,541,591

319,687

20.7%

21,649

Materials & Contracts costs associated with Public Open Spaces will increase significantly now through to the end of June.  Significant volumes of works began after the Easter public holidays with invoices now starting to flow through to the City. Included in the YTD variance is a one-off non-cash stock adjustment that when excluded drops the YTD variance by $106K.  Of note, there is $356K in committed costs representing either works underway or completed works pending receipt of an invoice from the supplier. At the time of writing this comment a further $163K in invoices had been receipted through in the early weeks of May.

5280

Transport - Fleet Management

1,247,274

1,514,295

267,021

17.6%

117

Fuel and Oil was underspent by $149,683K YTD accounting for 56% of the Fleet YTD variance. An end of year surplus is anticipated but will be less than was anticipated in the mid-year budget review as the fuel price has been on the rise. Fuel consumption across the City is now at its highest level as many large Civil works projects are now underway. Tyre purchases are underspent by $8,713 YTD and replacement parts/tooling/contractor costs are underspent $108,625 YTD. The budget for these items is spread evenly across the year, however spending is generally more cyclical in nature peaking in the busier spring/summer/autumn months of the year.

 


 

5.    Other Expenditure

$1.3M, or 40.4%, under the budget YTD. The main contributing items are listed below:

Cost Code

Cost Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Executive Services

64,995

92,470

27,475

29.7%

(9,758)

10001

Office of the CEO

64,182

92,470

28,288

30.6%

(9,758)

The underspend relates to donations contributions and subsidies budget ($10K), CapeROC budget ($13K) and the CEO Discretionary Budget ($5K).

Finance and Corporate Services

629,515

814,899

185,384

22.7%

75,843

10000

Members of Council

391,994

456,950

64,956

14.2%

4,676

Timing variances exist in relation to the payment of elected member allowances and reimbursements.  The main contributors being $23K related to timing variances in payment of sitting fees, the elected members training budget underspent by $16K, and no expenditure against the Council holding account with a YTD budget of $11K.  The timing variances for expense reimbursements are difficult to predict when budgeting. 

10151

Rates Administration

30,845

102,630

71,785

69.9%

68,297

Budget variances are due to an Unimproved Revaluation invoice totalling $55,787 yet to be processed plus interim valuation invoices still to be received.

10700

Public Relations

63,384

95,520

32,136

33.6%

3,420

The underspend variance is related to a reduced payment to BASSCA this year given COVID-19 and no school exchanges, the cancelling of the Mayoral Breakfast and a reduced spend associated with functions such as the launch of Jetstar flights.

Community and Commercial Services

931,217

1,958,244

1,027,028

52.4%

10,316

10530

Events & Cultural Services Administration (formerly Community Services Administration)

436,980

614,415

177,435

28.9%

27,861

Funds currently committed from the 2020/21 events budget through multi-year agreements and Rounds 1 and 2 of the Event Sponsorship Program totals $380,562. In addition, $200,000 is allocated towards the development of an electronic events billboard. This leaves a balance of $205,852 in the 2020/21 events budget for any further event attraction or initiatives. This balance includes funds from cancelled events.

Of the $250,000 allocated to the 2020/21 marketing budget, $120,000 has been allocated to the Airport Marketing Reserve, $50,000 to the Busselton Performing Arts and Convention Centre (BPACC), up to $12,000 had been allocated to update the City’s Events Strategy and up to $5,000 for the update of tourism signage, leaving a balance of $63,000 for any further initiatives. It is recommended that the remaining balance after any further allocations be transferred to the Airport Marketing Reserve.

Of the $40,000 allocated to City run events, a total of $11,684 was spent on seven Sun-Sets on the Bay events in Busselton and Dunsborough. This leaves a balance of $28,316. Pending any further initiatives, the remaining balance at the end of financial year will remain in the Marketing and Area Promotion Reserve. 

10532

BPACC Operations

11,668

45,000

33,332

74.1%

5,000

Low cost marketing materials have been developed to date and until construction is secured under the tender no large investments in event attraction are likely to be made.


 

10547

Iron Man

 -

200,000

200,000

100.0%

 -

Ironman has been cancelled for this year and hence the funds will not be expended. Council have resolved (C2012/159 – 9 December 2020) to utilise the remaining budget towards an electronic billboard, however this will not likely be completed until closer to the end of the financial year.

10548

Half Iron Man

27,500

55,000

27,500

50.0%

(27,500)

The event was originally budgeted for March, however it will be held in early May at which time the remaining sponsorship and promotional budget will be spent.

10550

Forrest Rally

 -

12,500

12,500

100.0%

 -

Forrest Rally organisers have advised that the event will not be proceeding from 2020/2021 onwards, therefore these funds will not be expended.

10567

CinefestOZ

80,000

120,000

40,000

33.3%

 -

YTD variance is due to the sponsorship contract being varied due to a change in format as a result of COVID (C2009/110) - $80K paid in 2020/21 with the balance ($38k) carried over to be paid in addition to 2021/22 Market Yield Adjustment.

10625

Art Geo Administration

9,260

22,220

12,960

58.3%

120

Underspend is offset by additional wages due to in house production of marketing, promotional and interpretation work.

10630

Economic and Business Development Administration

3,440

23,692

20,252

85.5%

954

The budget is made up of numerous line items that have been spread throughout the year. The actual timing for these things are inherently difficult to predict, including valuations as more often than not they depend on interactions with outside third parties for development opportunities and collaborations. For example, the City budgets for marketing and promotions, but need to wait for relevant opportunities to arise throughout the year that may not necessarily align with budget timing. It should be noted that a large portion of the total annual budget ($55K) relates to cruise ship visitor servicing ($38K), which due to the effects of COVID-19 will not be spent by the end of the financial year.

10634

Business Support Program

62,522

89,080

26,558

29.8%

7,408

There are a number of grants that are being finalised by applicants. Once these have been completed, then the City will pay out the grant funds. There is also an amount of $19K that has not been allocated from the total annual budget that will be reflected in the variance at year end.

11151

Airport Operations

76

420,689

420,613

100.0%

52

Relates to marketing activities for RPT services which have not commenced due to COVID.

Planning and Development Services

145,323

149,366

4,043

2.7%

1,133

10805

Planning Administration

29,148

50,000

20,852

41.7%

5,000

This variance relates to the façade refurbishment program which is not likely to have any additional projects / work costed to it this financial year as the City has not run the program as per normal because of unusually high workloads caused by the building stimulus.

10931

Protective Burning & Firebreaks-Reserves

1,550

14,650

13,100

89.4%

1,465

Due to the limited seasonal burning opportunities, the budget for catering for the crews has not been spent as expected YTD.

10942

Bushfire Risk Management Planning – DFES

23,466

 -

(23,466)

(100.0%)

 -

This represents repayment of unspent 19/20 BRMP grant funds.


 

Engineering and Works Services

137,436

186,801

49,365

26.4%

1,438

B1223

Micro Brewery - Public Ablution

60,000

120,000

60,000

50.0%

 -

The City’s fund contribution to the construction of these ablutions is due to be paid upon receipt of invoice from the company.  Final inspection of the toilet facilities was expected late March, after which the invoice should be forthcoming. 

G0042

BTS External Restoration Works

52,753

41,670

(11,083)

(26.6%)

2,567

There was an unforeseen cost increase in groundwater monitoring due to a laboratory error by our third party contractor.

The round of testing conducted in November included the sampling of over 50 groundwater bores, many of which reported “anomalous results”.  The contractor concluded that the lab had made errors in mis-labelling samples, which required re-sampling.

Although the lab did not charge us for additional testing due to their error, the City incurred extra costs when it had to re-engage the contractor to re-test several dozen bores in January.

The City’s Legal department is investigating whether compensation from the contractor can be pursued.

 

6.   Non-Operating Grants, Subsidies & Contributions

The negative variance of $4.4M is mainly due to the items in the table below. It should be noted that apart from the first two items in the table (the Locke Estate Contributions variance is due to COVID hardship deferral relief), any negative variance in this area will approximately correlate to an offsetting variance in a capital project tied to these funding sources. This can be seen in the section below that outlines the capital expenditure variances. The positive variances generally relate to budget timing, i.e. the funds are usually brought to account during the end of financial year reconciliation process, so hence are budgeted in June.

Revenue Code

Revenue Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Finance and Corporate Services

46,678

56,000

(9,322)

(16.6%)

 -

R0288

Locke Estate –

Leaseholder Contributions

46,678

56,000

(9,322)

(16.6%)

 -

Community and Commercial Services

23,000

38,851

(15,851)

(40.8%)

23,000

10590

Naturaliste Community Centre – Developer Contributions Utilised

23,000

 -

23,000

100.0%

23,000

C6025

Installation of Bird Netting – State Capital Grant

 -

38,851

(38,851)

(100.0%)

 -

Planning and Development Services

502,478

 -

502,478

100.0%

 -

10980

Other Law, Order & Public Safety – Donated Assets

8,231

 -

8,231

100.0%

 -

B1025

Yallingup Coastal Bushfire Brigade – Donated Assets

10,592

 -

10,592

100.0%

 -

C3223

Dunsborough Non-Potable Water Network –

Federal Capital Grant

483,655

 -

483,655

100.0%

 -


 

Engineering and Works Services

4,747,864

11,837,107

(7,089,243)

(59.9%)

(2,234,102)

A0025

Tuart Drive Bridge 0238 – Federal Capital Grant

 -

170,330

(170,330)

(100.0%)

 -

B9407

Busselton Senior Citizens – Developer Cont. Utilised

595,306

162,479

432,827

266.4%

 -

B9591

Performing Arts Convention Centre – Developer Cont. Utilised

 -

5,175,000

(5,175,000)

(100.0%)

(2,175,000)

B9999

Donated Buildings (Micro-Brewery Public Toilets)

110,000

 -

110,000

100.0%

 -

C0059

Dunsborough Yacht Club Carpark – Developer Cont.

60,000

 -

60,000

100.0%

 -

C1026

Townscape Works Dunsborough – State Capital Grant

10,000

 -

10,000

100.0%

 -

C3116

Dawson Park (McIntyre St POS) – Developer Cont.

 -

77,467

(77,467)

(100.0%)

 -

F1002

Dual Use Path - Dunsborough to Busselton – State Capital Grant

64,000

 -

64,000

100.0%

 -

F1022

Buayanyup Drain Shared Path – State Capital Grant

 -

266,670

(266,670)

(100.0%)

(26,667)

S0005

Ludlow Hithergreen Road - Second Coat Seal –

Main Roads Capital Grant

360,000

375,000

(15,000)

(4.0%)

142,500

S0048

Bussell Highway – Developer Cont. Utilised

200,000

416,670

(216,670)

(52.0%)

(41,667)

S0070

Peel & Queen Street Roundabout Service Relocation –

Developer Cont. Utilised

120,000

800,000

(680,000)

(85.0%)

 -

S0073

Gale Road Rural Reconstruction –

Federal Capital Grant

100,000

 -

100,000

100.0%

100,000

S0074

Causeway Road Duplication –

Developer Cont. Utilised

515,811

1,143,740

(627,929)

(54.9%)

(114,374)

S0075

Local Road and Community Infrastructure Program –

Federal Capital Grant

800,000

300,000

500,000

166.7%

 -

S0076

Kaloorup Road (Stage 1) – Main Roads Direct Grant

688,143

765,951

(77,808)

(10.2%)

 -

T0020

Capel Tutunup Road –

RTR Capital Grant

 -

1,188,940

(1,188,940)

(100.0%)

(118,894)

W0067

Ford Road Reconstruct and Asphalt Overlay – Main Roads Direct Grant

10,875

 -

10,875

100.0%

 -

W0121

Geographe Bay Road Quindalup –

Developer Cont. Utilised

12,000

 -

12,000

100.0%

 -

 


 

7.    Capital Expenditure

As at 30 April 2021, there is an underspend variance of 48.6%, or $18.8M, in total capital expenditure, with YTD actual at $19.9M against the YTD amended budget of $38.6M. 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:

Cost Code

Cost Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Land

 -

75,000

75,000

100.0%

 -

10610

Property Services Administration

 -

75,000

75,000

100.0%

 -

The budget represents funds allocated for costs associated with potential strategic land purchases in the City of Busselton. To date, there have been no expenses incurred, as potential transactions have not progressed beyond informal discussions.

Buildings

3,256,821

7,189,733

3,932,912

54.7%

1,397,235

B9516

Busselton Library Upgrade

591,443

603,000

11,557

1.9%

(3,138)

Library works completed. Balance of funds to be directed to fit-out items.

B9300/1/2

Aged Housing Capital Improvements

54,914

168,000

113,086

67.3%

8,175

Budgeted works were proposed to separate power and drainage servicing Winderlup Court and Winderlup Villas.  Whilst the power requirements are not triggered until the new conditional land title lots are created, the intention was to progress with this anyway. The procurement process has elicited one quotation only which, even if acceptable is unlikely to generate an invoice payable in the current financial year.  As such the budgeted funds will be carried over in reserve to be utilised once appropriate contractual arrangements can be made.

B9407

Busselton Senior Citizens

625,483

738,128

112,645

15.3%

 -

Works were completed in September. The savings against budget are being reviewed for potential use on roof replacement and carpark works. Works have been re-scoped based on preliminary estimates to reduce costs of roof replacement. The tender to perform these works has now been awarded and are expected to be completed by the end of the financial year.

B9558

Churchill Park -  Change Room Refurbishment

 -

21,000

21,000

100.0%

 -

Works are scheduled to be completed before the end of the financial year. Procurement for roof sheeting is currently underway.

B9591

Performing Arts Convention Centre

1,438,979

4,819,325

3,380,346

70.1%

1,448,543

Regional Growth Fund milestones are under review pending funding extension confirmation. Design contract program extension pending. Budgeted cash flow has been reviewed, with works now scheduled for commencement in June 2021.

B9596

GLC Building Improvements

213,831

409,710

195,879

47.8%

(62,694)

Carried over works from the prior year. Works have now been completed with reconciliation of the final progress claims expected to be completed in May.  Payment should follow shortly thereafter and is expected to fully utilise this budget.


 

B9606

King Street Toilets

47,781

38,360

(9,421)

(24.6%)

3,836

Stage 1 works completed. Minor additional works undertaken in this period to improve accessibility to new viewing platform. The proportion of the project carried over from prior years is now completed and is overspent compared to the total budget by $3,035, representing 6%.

B9607

General Buildings Asset Renewal Allocation (Various Buildings)

112,058

125,000

12,942

10.4%

1,040

This budget was assigned for various Capital works as identified as per the City’s Building Asset Management Plan. $11.4K was outlaid in the month of April for painting of the High Street Hall. The categorisation of this expenditure likely represents a maintenance activity and thus should not be capitalised yet is contradictory to this it exceeds the City’s $5k capitalisation threshold. To this end, there is some confusion at present by some staff as to what constitutes Capital as opposed to Operations and Maintenance and this impacts upon budgeting. To this end, these cost may be moved back in against operations prior to 30 June. There is a further $30K in committed costs representing either scheduled works to be completed, being completed or completed yet awaiting an invoices from the supplier.

B9608

Demolition Allocation

(Various Buildings)

2,011

12,500

10,489

83.9%

 -

Funds have been allocated to partial demolition of the Weld Theatre by the end of the financial year, in preparation for its integration with the BPACC.

B9610

Old Butter Factory

131,549

 -

(131,549)

(100.0%)

 -

Conservation and fire damage works now completed. Insurance claim has now been approved, with the final position estimated to be ($30K), with savings being identified in other areas to account for this variance.

B9612

Churchill Park

Renew Sports Lights

181

140,000

139,819

99.9%

(100)

A review of consultants work to date has been undertaken and Council has endorsed a grant application to the state government for this site.  If the application is accepted (response expected in June), budgeted expenditure will be carried forward into the 21/22 budget year.  If not, much of this budget will be spent by the end of this this financial year.

B9711

Busselton Airport – Building

 -

15,000

15,000

100.0%

 -

Small capital works projects to be completed either prior to Jetstar flights commencing or by the end of the financial year.

B9717

Airport Construction - Existing Terminal Upgrade

 -

35,670

35,670

100.0%

3,567

As per above.

B9809

Busselton Jetty Tourist Park Compliance Works

3,600

40,000

36,400

91.0%

 -

Compliance electrical works to be completed by the end of the financial year.

Plant & Equipment

1,188,999

2,437,620

1,248,621

51.2%

(274,252)

10372

Dunsborough Cemetery

 -

20,000

20,000

100.0%

 -

The budget is for maintenance trailers for the cemetery, both for grave shoring equipment and watering equipment, as well as fencing and turf upgrades. The delay in procurement of these items is due to current workloads of relevant staff and other projects taking a higher priority to date.  Suitable specifications have now been developed and quotes are being sought, however the new equipment is not expected to be delivered until August 2021.  As such, these budgeted funds will remain in reserve and be relisted to be drawn in the 21/22 budget.


 

11106

Street Lighting Installations

17,300

 -

(17,300)

(100.0%)

 -

The expenditure represents a storage container for the lighting equipment. The budget for the whole activity has been entered against one operational line incorrectly, rather than being split according to operational maintenance, capital upgrade, and one-off asset purchases such as this.

11156

Airport Development Operations

199,403

235,920

36,517

15.5%

(2,946)

The YTD variance relates to the baggage handling system, the under spend of $37K will be taken up by commitments of $39K for works which have now been completed but will not yet invoiced.

11162

Busselton Jetty - Underwater Observatory

17,523

 -

(17,523)

(100.0%)

 -

In February there was $17.5K in unplanned expenditure for an Uninterrupted Power Supply (UPS) for the Underwater Observatory (UWO) lift.  This will be funded from the Jetty Reserve.

11401

Transport – Workshop

19,227

30,000

10,774

35.9%

(8,817)

The delivery of hardware for upgrades to the repeater at the communications tower are to be delivered in April.  Installation of these will be dependent upon receiving Telstra approvals.

11402

Plant Purchases (P10)

596,461

1,420,000

823,539

58.0%

(275,260)

Underspend variances to budget YTD are due to:

·                The new generators at DWF pond and cell that were ordered in April, with delivery of one unit in June and the second in July. (carryover listed in the 21/22 budget);

·                The waste manager’s new replacement vehicle to be ordered and delivered in May;

·                A waste truck side loader that has been ordered, but delivery/payment is not expected until August (this underspend saving will be a carry-forward purchase from the Plant Reserve in the 21/22 budget);

·                The waste compactor semi-trailer purchase has been deferred indefinitely pending development of the new waste plan.

11403

Plant Purchases (P11)

46,995

200,000

153,005

76.5%

2,500

One ute ordered with delivery delayed until July and one light truck ordered in December, delivery now delayed until July. Both listed as carryovers in the 21/22 budget.

11404

Plant Purchases (P12)

 -

114,000

114,000

100.0%

 -

One light truck ordered with delivery expected in July. Listed as carryover in the 21/22 budget.

11407

P&E - P&G Smart Technologies

 -

83,330

83,330

100.0%

8,333

The annual scope of the project is currently being finalised and delivery will follow in the last quarter of 20/21.

11500

Operations Services Administration

 -

40,000

40,000

100.0%

 -

Vehicle ordered in October, delivered in late April.  Invoice not received from supplier until May.

Furniture & Office Equipment

266,819

451,088

184,269

40.8%

(9,182)

10250

Information & Communication Technology Services

214,921

407,088

192,167

47.2%

(3,119)

Whilst variance is currently high the budgeted amount is planned for expenditure. Some of the delayed projects (COVID impacts include consultancy availability, hardware supply chain and additional unplanned IT work) have been accelerated in the new year including the hardware refresh, phone line migration, single label domain, website builds and online payments. It is expected that the projects will make up time and currently do not plan for any carry overs.


 

Infrastructure By Class

15,162,224

28,497,110

13,334,886

46.8%

754,980

Various

Roads

9,618,788

13,319,732

3,700,944

27.8%

(1,016,685)

Capital projects with civil works are commonly scheduled to be carried out in the drier summer/autumn construction season. The capital works budgets have been entered based on an even spread method and approach, not on a scheduled timing of works basis. Major civil road construction works are now underway in numerous locations across the City. The large rural Gale Road project ($1.437M) has commenced and is now nearing completion, but is estimated to come in under budget by approx. $400K due to competitive contractor pricing; this is contributing to the current $1.016M YTD variance. There will be a material underspent associated with the Peel & Queen Street Roundabout project (S0070) valued at $1.2M. Service relocation works are scheduled to comment after Easter on the Peel Terrace roundabout with stage 2 works at the Albert Street intersection to be completed in the following financial year. Stage 1 Blackspot works out on Kaloorup Road (S0076 $400K) although recently started will not be completed this financial year and thus will represent a partial carry over as at 30 June.

Various

Bridges

 -

2,206,993

2,206,993

100.0%

1,123,996

Although Bridge renewal works will be done on both the Bussell Highway and Yallingup Beach Road bridges this financial year it is unlikely any expenditure will be recorded due to the requirement for formal notification of completion from Main Roads and of invoices from them. Main Roads carry out these works on behalf of the City. Works on the Kaloorup, Boallia Road and Tuart Drive Bridges are now scheduled to commence in the 2022 Financial year. To this end an under expended variance to budget totalling $6.4M is anticipated come 30 June. All 5 bridge projects will represent carry overs. 

Various

Car Parks

1,116,071

1,567,490

451,419

28.8%

(19,963)

Car Park projects are generally progressing well although there is a $451K under expended variance to budget YTD. 62% of the YTD variance is attributable solely to the Car Parking associated with the Barnard East Development with the majority of construction to occur in 2022. There is $163K in committed costs associated with ongoing car park projects.

Various

Footpaths & Cycleways

251,608

1,212,850

961,242

79.3%

92,704

The YTD variance associated with Footpath & Cycleway projects grew by a further $92.7K to the end of April. This is primarily attributable to the Buayanyup Drain Shared Path project that is soon to commence which represents 54%, or $523K, of the YTD variance. There has been many significant unforeseen complexities associated with this project. An extension to the 50% Regional Bike Network grant associated with this project has been secured; the project will carry over into the 2022 financial year.

Contributing a further $224K in combined under expenditure to budget are the Bussell Highway Footpath Sections Project and the Dunsborough Centennial Park Footpath Project where the budget for these have been earmarked and reassigned to cover additional Queen Street Paving works.

Various

Parks, Gardens & Reserves

3,923,929

9,349,371

5,425,442

58.0%

584,736

68% representing $3.685M of the YTD variance in this category is attributable to only the four projects listed below:

·                Dunsborough Lakes Sporting Precinct (Stage 1); Civil works to begin soon but the majority of the budget to be carried over and added to Stage 2.

·                Craig Street Groyne and Sea Wall; works currently under way with progress claims anticipated in May and June.

·                Site Rehabilitation – Busselton; works postponed in lieu of site settling, survey and levelling.

·                Mitchell Park Upgrade; works commenced but the supplier went into Administration with the majority of this Budget to be carried over.

Further to the above, in excess of $1M of the YTD variance is attributable to the numerous Public Open Space upgrade projects using Cash in Lieu of Public Open Space contributions; a report based on the Tender for these projects is to be presented to Council soon.


 

Various

Drainage

30,223

82,294

52,071

63.3%

(15,278)

There are only three small drainage related projects on budget this financial year.  Both the Glenmeer Ramble and Chugg Road Drainage Upgrade projects are scheduled to commence in the last quarter of the financial year.

Various

Regional Airport & Industrial Park Infrastructure

221,605

758,380

536,775

70.8%

5,470

Bird netting has now been completed and invoices approved for payment and the car park works have been completed but not paid at the time of this report. The most significant part of the underspend relates to noise amelioration works which is funded from grant funds held in reserve. This will be partially invoiced by the end of the financial year, but depending on construction timelines, the rest will need to remain on the Airport development budget for future noise amelioration.  Unspent funds will therefore remain in the reserve.

 

8.    Proceeds From Sale of Assets

YTD proceeds from sale of assets is $242K behind budget due to delays in delivery of acquisitions, and the associated transfer to auction of the vehicles being replaced. 

 

Also, aside from a significantly reduced capital replacement program in both light vehicles and heavy plant items, many existing items of plant that were due to be replaced have been retained in service to maintain operational requirements.

 

9.    Proceeds From New Loans

$7.5M of the budgeted proceeds of $7.7M are related to the planned drawdown on the construction loan for the BPACC. This project has been deferred in consultation with the Federal Government.  Construction is now planned to commence in July 2021.  Grant funding will start to be acquitted in the second half of 2021, as will the drawdown on the borrowing facility. 

 

The remaining $200K of the variance is offset by advances to community groups which have not occurred at this point in time.

 

10.  Repayment of Capital Lease

The budget was being finalised during the first COVID lockdown. As such, the timing was not set as accurately as it could have. The timing difference YTD will rectify by the end of June.

 

11.  Advances to Community Groups

No applications have been approved to date.  The $200K positive variance is offset by the non-receipt of the associated loans funds that the City would receive for these on-lending purposes.

 

12.  Transfer to Restricted Assets

There is a YTD variance in transfers to restricted assets of $5.3M more than amended budget. At the time of budgeting it is not possible to predict what grants will be received in what timeframe, nor when they will be spent and hence potentially transferred to restricted assets beforehand. The following grants, totalling $2.4M, have been received and transferred to restricted assets for which there is no budgeted transfer and full acquittal completed:

·                Grant funding received from Federal Government for “Drought Communities Program” of $500K (attributable to CC C3223 Dunsborough Non-Potable Water Network) was received in September and another $200K received in March.  Budget projected allocation was in June as was the anticipated expenditure, hence no necessity to budget for a transfer to restricted assets;

·                $841K of the $1.6M grant for the Dunsborough Lakes Sporting Fields Development was received in March;

·                $855K 3rd instalment of the annual Roads to Recovery Grant allocation that has not been fully acquitted by YTD March.

 

Developer contributions, deposits and bonds are inherently hard to predict and budget for. An annual amount of $63K spread evenly over 12 months was budgeted, however over $2.9M has been received YTD, the bulk of which are for road works bonds ($2.4M).

 

13.  Transfer from Restricted Assets

YTD there has been $2.3M transferred from restricted assets into the Municipal Account. This was mainly attributable to refunds of road work bonds of $1.5M, refund of hall deposits of $26K, Busselton Jetty Tourist Park deposit refunds of $393K, $484K spent from the first $500K tranche of the Dunsborough Non-Potable Water Network grant, and other sundry refunds of $46K.

 

The variance to YTD budget for these items is due to majority of the transfers being forecast to occur in June.

 

14.  Transfer from Reserves

YTD there has been $6.8M transferred from restricted assets into the Municipal Account, compared to a budget of $5.7M. The discrepancy is caused by the earlier than expected completion of many reserve funded capital projects, most notably $882K worth of road works.

Investment Report

As at 30 April 2021, the value of the City’s invested funds totalled $82.2M, being no change from $82.29M as at 31 March 2021. 

 

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 constant at $7.0M.  

 

During the month of April, six term deposits totalling the amount of $19.0M matured. Existing deposits were renewed for a further 121 days at 0.30% on average.

 

The official cash rate remains steady for the month of April at 0.10%.  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 April 2021 are provided below to ensure there is appropriate oversight and awareness.

 

Date

Payee

Description

$ Amount

2/04/21

QANTAS AIRWAYS

2021 PERTH AIRPORT WA TOURISM CONFERENCE 3-5 MAY 2021 IN GERALDTON - CR K. COX

409.98

6/4/21

THE FLOWER PLACE BUSSELTON

SYMPATHY FLOWERS

80.00

12/04/21

SHELTER BREWING BUSSELTON

CARD USED IN ERROR - EXPENSE FULLY REFUNDED

58.00

22/04/21

ZEST FLOWERS DUNSBOROUGH

ANZAC DAY WREATH

100.00

 

 

TOTAL

$647.98

 

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 by Council. Council may wish to make additional resolutions as a result of having received these reports.

CONCLUSION

As at 30 April 2021, the City’s net current position stands at $8.4M. The City’s financial performance is considered satisfactory, and cash reserves remain strong.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.  


Council

59

23 June 2021

12.2

Attachment a

Financial Activity Statement - April 2021

 



















Council

61

23 June 2021

12.2

Attachment b

Investment Report - April 2021

 


Council                                                                                      64                                                                      23 June 2021

12.3           Finance Committee - 9/6/2021 - BUDGET AMENDMENT REQUEST - ENGINEERING AND WORKS SERVICES

STRATEGIC THEME

 

STRATEGIC PRIORITY

LEADERSHIP - A Council that connects with the community and is accountable in its decision making.

4.5 Responsibly manage ratepayer funds to provide for community needs now and in the future.

SUBJECT INDEX

Budget Planning and Reporting

BUSINESS UNIT

Engineering Support

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

Nil

 

This item was considered by the Finance Committee at its meeting on 9/6/2021, the recommendations from which have been included in this report.

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

That the Council endorse the requested budget amendment outlined in this report, recognising the additional income received in grant funding, and the corresponding expenditure budget:

 

Reference

Description

Project Code

Additional External Revenue

Use of Revenue Received in Prior Years

Additional Expenditure / (Reduce Expenditure)

Transfer from Reserves

 

Reserve Impact

Impact on Budget

1

Townscape Works Dunsborough – RAC Grant Hannay Lane

C1026

$50,000

 -

$50,000

-

-

 -

 

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.

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 ($0) 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.

 

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 May 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 is one budget amendment items of this type detailed below. The net effect of this amendment on the net budget position is zero ($0).

  

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.    Townscape Works Dunsborough – RAC Grant                                                             Cost Code C1026

The City has secured an RAC grant totalling $50,000 based on a 50/50 contribution towards the Hannay Lane Revitalisation project.

 

It is recommended that the grant be budgeted and applied against the existing Dunsborough Townscape Project Cost Code C1026. This will correspondingly increase the expenditure budget from $150,000 to $200,000.  The City’s co-contribution of $50,000 has already been assigned.

 

Council’s approval is sought to adjust the budget accordingly. 

 

Net Budget Position

After making the above adjustments, the budget position remains unchanged from budget adoption and the Municipal cash budget position remains the same.

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 this recommendations is shown in the table below. 

Reference

Description

Project Code

Additional External Revenue

Use of Revenue Received in Prior Years

Additional Expenditure / (Reduce Expenditure)

Transfer from Reserves

 

Reserve Impact

Impact on Budget

1

Townscape Works Dunsborough – RAC Grant Hannay Lane

C1026

$50,000

 -

$50,000

-

-

 -

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 endorse the proposed budget amendment requests.

CONCLUSION

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

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

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

 


Council                                                                                      73                                                                      23 June 2021

13.             Planning and Development Services Report

13.1           AMENDMENT NO. 48 TO LOCAL PLANNING SCHEME NO. 21 (PORTION OF LOT 1 NO. 99 CAUSEWAY ROAD, BUSSELTON) - CONSIDERATION FOR ADOPTION FOR FINAL APPROVAL

STRATEGIC THEME

OPPORTUNITY - A vibrant City with diverse opportunities and a prosperous economy.

STRATEGIC PRIORITY

3.2 Facilitate an innovative and diversified economy that supports local enterprise, business investment and employment growth.

SUBJECT INDEX

Local Planning Scheme 21 Amendments

BUSINESS UNIT

Strategic Planning

REPORTING OFFICER

Planning Officer - Joanna Wilkinson

AUTHORISING OFFICER

Director, Planning and Development Services - Paul Needham

NATURE OF DECISION

Legislative: adoption of “legislative documents” such as local laws, local planning schemes and local planning policies

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Location Plan

Attachment b    Aerial Photograph

Attachment c    Development Guide Plan (DGP 135)

Attachment d   Development Approval (DA16/0400.01)

Attachment e    Schedule of Submissions

Attachment f    Schedule of Modifications  

 

OFFICER RECOMMENDATION

That the Council:

1.         In pursuance of the Planning and Development (Local Planning Schemes) Regulations 2015, adopts Amendment 48 to Local Planning Scheme No. 21 for final approval, in accordance with the modification proposed in the Schedule of Modifications shown at Attachment F, for the purposes of:

(a)       Amending Schedule 5 “Special Uses” by amending “Special Use No. 17 – Special Uses” as follows:

No.

Description of Land

Special Use

Conditions

17.

As identified on the Scheme map

The following uses are “D” discretionary:

a.    Service Station

b.    Warehouse/Storage

c.     Shop

d.    Restaurant/Café

e.    Garden Centre

f.     Takeaway Food Outlet

1.    The Shop land use is limited to a maximum gross floor area of 500m².

2.    The Takeaway Food Outlet is limited to a maximum gross floor area of 100m².

3.    The overall site is limited to a maximum gross floor area of 1,700m².

4.    Notwithstanding clause 4.5.1, development which exceeds these areas is expressly prohibited.

 

 

5.    Buildings shall not be located within 20m of the Causeway Road boundary.

6.    New development shall respond to the prominence of the site on Causeway Road, as an entry corridor to Busselton, by addressing the following matters:

a.    Buildings shall be articulated to break up perceived bulk and provide visual interest when viewed from Causeway Road and Bussell Highway;

b.    Building textures and elements shall maintain and enhance the scenic character of Causeway Road;

c.     Building materials shall include a mix of transparent glazing and opaque materials, with no blank facades visible from Causeway Road;

d.    Building services such as bin storage, utilities, storage tanks, firefighting equipment and the like shall be concealed so they are not visible from Causeway Road and Bussell Highway; and

e.    Landscape planting shall provide an attractive interface between buildings and car parking areas when viewed from Causeway Road, without impeding vehicle sight lines.

(b)       Amending Schedule 3 “Special Provision Areas” by deleting “Special Provision No. 15” (“SP15”).

2.         Amending the Scheme Map accordingly.

3.         Advise the Western Australian Planning Commission that Amendment 48 is considered a ‘standard’ amendment pursuant to the Planning and Development (Local Planning Schemes) Regulations 2015 for the following reasons:

(a)       it is an amendment relating to a zone or reserve that is consistent with the objectives identified in the Scheme for that zone or reserve;

(b)       it is an amendment that would have minimal impact on land in the Scheme area that is not the subject of the amendment;

(c)       it is an amendment that does not result in any significant environmental, social, economic or governance impacts on land in the Scheme area.

4.         Pursuant to r. 35A of the Planning and Development (Local Planning Schemes) Regulations 2015 (as amended), advise the Western Australian Planning Commission that Amendment 48 affects the area to which a structure plan approved under Local Planning Scheme No. 21 relates, and when the Amendment 48 takes effect the approval of the structure plan is to be revoked.

5.         Pursuant to r.53 of the Planning and Development (Local Planning Schemes) Regulations 2015, endorses the Schedule of Submissions at Attachment E, which has been prepared in response to the public consultation process undertaken in relation to Amendment 48.

6.         Upon preparation of the necessary documentation, refers the adopted Amendment 48 to the Western Australian Planning Commission for consideration and determination in accordance with the Planning and Development Act 2005.

7.         Pursuant to r.56 of the Planning and Development (Local Planning Schemes) Regulations 2015, should directions be given that modifications to Amendment 48 are required, direct these modifications to be undertaken accordingly, on behalf of the Council, unless they are considered by officers likely to significantly affect the purpose and intent of the Amendment, in which case the matter shall be formally referred back to the Council for assessment and determination.

 

EXECUTIVE SUMMARY

Council is requested to consider adopting proposed Scheme Amendment 48 (the Amendment) to Local Planning Scheme No. 21 (the Scheme) for final approval. The Amendment would facilitate clarification of the land use controls relating to a portion of Lot 1 Causeway Road, by changing Schedule 5 ‘Special Uses’ (SU17) of the Scheme through the introduction of several new ‘Special Use’ land uses. It is also proposed that Schedule 3 ‘Special Provisions’ be altered by deleting SP15.

 

Advertising of the Amendment resulted in six external agency submissions and one public submission. The submissions included no objections, however comments and recommendations were provided in regard to widening of road reserves and public health requirements.

 

Officers are recommending that the Amendment be adopted by the Council for final approval, in accordance with the modification in the Schedule of Modifications provided at Attachment F (which has been proposed following gazettal of amendments to the Planning and Development (Local Planning Schemes) Regulations 2015 (the Regulations)), and forwarded to the Western Australian Planning Commission (WAPC) and Hon. Minister for Planning for final approval.


 

BACKGROUND

Lot 1 Causeway Road is located approximately 2km south of the Busselton City Centre, at the intersection of Causeway Road and Bussell Highway. Lot 1 has a total land area of 1.1433 hectares, and is severed by Koorden Place. The southern portion, which is the subject of this proposal (the subject land) is 9,420m² in area and zoned ‘Special Use – Service Station/Plant Nursery’. The northern portion of Lot 1 is 2,013m² in area, zoned ‘Rural’, and is not subject to any part of this proposal.  A location plan and aerial photograph are provided at Attachments A and B, respectively.

 

The subject land is located on a prominent entry route to the Busselton City Centre, and has a complex and somewhat difficult planning history. The original zoning under Town Planning Scheme No. 20 (TPS 20) was ‘Agriculture’. The zoning was amended to ‘Special Use – Service Station/Plant Nursery’ through Amendment 15 to TPS 20 (gazettal date 29 April 2003). The site is also subject to SP15 which includes provisions relating to structure planning, access, landscaping, and building design. A Structure Plan (DGP 135) for the subject land was endorsed by the WAPC in 2003, and is provided at Attachment C. Amendment 99 (circa 2006) to TPS 20 attempted to change the zoning of the land to accommodate a motor vehicle sales and repairs land use, however that amendment was unsuccessful.

 

The current development approved for the site (DA16/0400), was determined by Council in 2016 (C1610/104) due to the level of community interest and nature of issues raised during advertising. In 2017, DA16/0400 was subject to a modification request to the approved plans (DA16/0400.01). This request was approved and the original decision notice and plans amended. A copy of the modified development approval is provided at Attachment D.

 

Lot 13 Koorden Place, adjacent to the subject land, is zoned Rural. At its meeting of 22 August 2018 (C1808/166), Council approved a development application (DA18/0145) for a ‘Use Not Listed (4WD Test Track and Informal Parking Area) for the site.

 

The land use description approved for DA16/0400.01 is “Service Station (with ancillary wholesale fruit and vegetable, including small scale retail and drive-through coffee outlet)”. In effect, this means that all development other than the ‘Service Station’ that is now located on the subject land must be ancillary or subsidiary to the ‘Service Station’ land use. Condition 6 and Advice Note 5 of DA16/0400.01 are relevant to this proposal:

Ongoing Conditions:

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

6.1  Sale of goods and services to the general public shall only occur in association with the service station, drive-through coffee facility and in the portion of the ‘FRUIT/VEGETABLE WHOLESALE’ building marked ‘INCIDENTAL RETAIL OUTLET’ on the approved plan.

6.2  Should, at any time, the service station cease to operate, then all of the other (ancillary) land-uses shall cease immediately, and none of the other land uses may commence operating until the service station has commenced operating.

6.3   Should the wholesale operations of the ‘FRUIT/VEGETABLE WHOLESALE’ building cease, the retail operations must also cease immediately.


 

Advice to Applicant:

5.    You are advised that, to clarify the land-use controls relating to the site and to allow the ancillary/subsidiary land-uses to operate independent of the predominant land-use in the future, the City envisages amending the town planning scheme in the future. Were that to occur, Conditions 5.1, 5.2 and/or 5.3 may be able to be removed subject to the receipt and assessment of an applicant [sic] to amend the planning approval. As part of the same or a different town planning scheme amendment, the City also envisages presenting for the Council’s consideration proposals for the better management and control of non-agricultural land-uses on Agricultural zoned and other land adjoining the City’s major road network, consistent with the adopted strategic planning direction which is generally opposed to unplanned commercialization of land-use along that major road network.

Condition 6 mandates that all land uses on the site other than the ‘Service Station’ are dependent on the operation of the ‘Service Station’ land use. It restricts how the associated sale of goods and services, and the retail component of the fruit/vegetable wholesale operation, shall occur.

 

The first half of Advice Note 5 relates to Condition 6 and is relevant to this Amendment. The second half of the Advice Note does not relate to Condition 6 or the subject land, and will not be discussed any further in relation to this proposal (but as a matter it is now envisaged this will be addressed in the new town planning scheme, which is in development).

OFFICER COMMENT

The land subject of the Amendment has been developed in accordance with DA16/0400, the subsequent modification of that approval, and generally in accordance with DGP 135.

 

A significant purpose of the Amendment is to act upon Advice Note 5, which was included when development approval was issued in 2016. The Amendment will better define and clarify the land use controls that have been approved and are currently operational, by introducing the new land uses ‘Warehouse/Storage’, ‘Shop’, ‘Restaurant/Café’, and ‘Takeaway Food Outlet’. These land uses are, in effect, already operating at the site. Changes to SU17 would also include conditions that strengthen and clarify the ‘Shop’ and ‘Takeaway Food Outlet’ land use areas, cap the overall maximum gross floor area, and carry over (from SU17 and DGP 135) design controls relating to the prominence of the site.

 

It is also proposed that SP15 would be deleted. SP15 includes a number of provisions relating to structure planning, access, landscaping, and building design. The original provisions of SP15 and DGP 135 were considered during the assessment of DA16/0400, and are now found to be somewhat redundant given that development of the subject land is completed. Notwithstanding, conditions relating to setbacks and building design have been included in the proposed change to SU17.

 

Having considered the submissions received, officers consider that the Amendment is an appropriate outcome consistent with the Regulations, key local and State strategic planning documents, and orderly and proper planning within the City of Busselton.

Statutory Environment

The key statutory documents relevant to this proposal include the Planning and Development Act 2005, the Planning and Development (Local Planning Schemes) Regulations 2015, and the relevant objectives and provisions of the City of Busselton Local Planning Scheme No. 21. Each is discussed below under appropriate subheadings.


 

Planning and Development Act 2005

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

Planning and Development (Local Planning Schemes) Regulations 2015

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

 

Local Planning Scheme No. 21

The subject land is zoned ‘Special Use – Service Station/Plant Nursery’, and is identified in Schedule 5 ‘Special Uses’ as ‘Service Station/Plant Nursery’ (No. 17). The objectives of the ‘Special Use’ zone are as follows:

a.              To facilitate special categories of land uses, which do not sit comfortably within any other zone.

b.         To enable the local government to impose specific conditions associated with the special use.

 

The subject land is also subject to the ‘Special Provision’ Special Control Area (SP15).  The following ‘Special Provisions’ apply:

1.         Development of the land shall generally be in accordance with a Structure Plan adopted by the local government and endorsed by the Western Australian Planning Commission.

2.         Access along Causeway Road is restricted to “left out” only.

3.         Road widening of Causeway Road will be provided at the subdivision stage to the satisfaction of Main Roads WA.

4.         Proposed landscaping areas shown on the Structure Plan will be subject to detailed design and approval by Main Roads WA and the local government prior to implementation at the subdivision and development stage and shall address the following to the local government’s satisfaction –

a)        effective screening of buildings and fences;

b)        planting density and height;

c)         the function of Causeway Road as an entry corridor to Busselton; and

d)        sight distances.

4.         The architectural design and proposed colour schemes associated with any development on the land will be subject to approval by the local government and will need to address the following matters to the local government’s satisfaction

a)        The function of Causeway Road as an entry corridor to Busselton;

b)        Landscape and streetscape impacts;

c)         Setbacks to road frontages; and

d)        Building height.

 

Clause 5.14 Designated Bushfire Prone Areas is also relevant to this proposal as follows:

5.14.1 A Designated Bushfire Prone Area is an area designated as Bush Fire Prone on the Bush Fire Hazard Assessment maps. Dwelling construction within an identified area will be subject to the relevant bushfire prone area building requirements pursuant to the Building Code of Australia, Australian Standard 3959 – 2009 and otherwise as set out pursuant to the Scheme.

 

The proposal is considered to be consistent with the relevant objectives and provisions relating to the zoning of the subject land under the Scheme.

Relevant Plans and Policies

The key policy documents relevant to this proposal are State Planning Policy 3.7: Planning in Bushfire Prone Areas, and the Local Commercial Planning Strategy. Each is discussed below under appropriate subheadings.

 

State Planning Policy 3.7 (SPP 3.7)

The intent of SPP 3.7 is to implement effective, risk-based land use planning and development to preserve life and reduce the impact of bushfire on property and infrastructure.  SPP 3.7 directs how land use should address bushfire risk management, and applies to all land which has been designated as bushfire prone by the Office of Bushfire Risk Management.

 

The subject land has been designated as a Bushfire Prone Area since 2019; this designation was not applied at the time of development approval in 2016, nor at the time of physical development.

 

Planning Bulletin 111/2016 provides a basis for exemptions from the requirements of SPP 3.7 and the deemed provisions (of the Regulations), and states that the deemed provisions should be applied pragmatically by the decision maker.

 

Taking a pragmatic approach, therefore, a Level 3 bushfire consultant was commissioned by the proponent to assess the matter. The professional advice provided was that a retrospective bushfire risk assessment would not provide any increase in safety to employees or visitors and would not change the overall bushfire exposure risk compared to the 2016 status, when development approval was issued. In responding to an invitation to provide a submission on the matter, the Department of Fire and Emergency Services advised that the application of SPP 3.7 may not be required in this instance, however the application of the policy is ultimately a matter for the final decision-maker.

 

Local Commercial Planning Strategy (LCPS)

In order to prevent ad-hoc commercial ribbon development along major roads, the LCPS prevents further commercial development along Causeway Road, other than that accommodated by existing zonings or specifically supported by the Strategy. Recommendation 9 applies:

9)         Further service commercial development along major roads, including Busselton Bypass, Bussell Highway and Causeway Road, other than that accommodated by existing zonings and/or specifically supported by the Strategy is not supported.

Financial Implications

There are no financial implications associated with the Officer Recommendation.


 

Stakeholder Consultation

The Amendment was advertised for a period of 42 days ending 7 May 2021. A total of seven submissions were received (six agency and one public submission). A Schedule of Submissions is provided at Attachment E. There were no objections received, however some agencies provided comments which are summarised as follows:

a)         Road reserve widening in accordance with DGP 135, and as recommended through advice provided for DA16/0400.

b)        Public health requirements.

 

With respect to the first matter, traffic impact and road reserve widening was considered by Council in 2016 when determining the development proposal for the site. In considering its decision, Council was advised that the Main Roads recommendation for road widening was to allow for B-Double trucks heading north to be able to turn right into Koorden Place. Council determined that it was an excessive requirement as that type of service delivery wasn’t expected at the site.

 

With regard to this proposal, the amendment of Schedule 5 – “Special Uses” in the Scheme, Special Use No. 17 would potentially result in the relocation of an internal wall, within the Western Growers fresh produce outlet, to increase the retail component, and decrease the wholesale component. The amendment the Schedule 5 would also restrict the overall gross floor area on the site to 1,700m²; current GFA is 1,575m² (this would allow an additional 125m² on the site). This would be a minor change to the site as a whole that is unlikely to lead to altered service delivery or an increase in traffic demands on the Koorden Road intersection.

 

Main Roads recommended that an additional condition be included to SU17, requiring road reserve widening. This recommendation is not supported for reasons discussed above, and because it may result in an adverse visual impact on Causeway Road through removal of recent landscaping.

 

With respect to item b), the public health matters raised will be considered if and when there is any expansion to existing development at the site.

Risk Assessment

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

Options

As an alternative to the proposed recommendation the Council could:

1.         Resolve to not adopt the Amendment for final approval (and provide a reason for such a decision). It should be noted that under the relevant legislation there is no right of appeal against a Council decision not to adopt an amendment for final approval.

2.         To seek further information before making a decision.

 

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

CONCLUSION

City officers recommend that the Council resolves to recommend to the Western Australian Planning Commission that Amendment 48 be finally approved, in accordance with the Schedule of Modifications (Attachment F).

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The implementation of the officer recommendation will involve the referral of Amendment 48 to the Western Australian Planning Commission for final approval and this will occur within one month of the resolution.  


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Attachment a

Location Plan

 


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Attachment b

Aerial Photograph

 


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Attachment c

Development Guide Plan (DGP 135)

 


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Attachment d

Development Approval (DA16/0400.01)

 















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Attachment e

Schedule of Submissions

 





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Attachment f

Schedule of Modifications

 


Council                                                                                      101                                                                    23 June 2021

14.             Engineering and Work Services Report

14.1           PROPOSAL TO DEDICATE A PORTION OF PEDESTRIAN ACCESS WAY, LOT 55 ABBEYS FARM ROAD YALLINGUP, AS PUBLIC ROAD

STRATEGIC THEME

LIFESTYLE - A place that is relaxed, safe and friendly with services and facilities that support healthy lifestyles and wellbeing.

STRATEGIC PRIORITY

2.10 Provide local road networks that allow for the safe movement of people through the District.

SUBJECT INDEX

Thoroughfares

BUSINESS UNIT

Engineering and Facilities Services

REPORTING OFFICER

Land and Infrastructure Officer - Andrew Scott

AUTHORISING OFFICER

Director, Engineering and Works Services - Oliver Darby

NATURE OF DECISION

Regulatory: To determine an application/matter that directly affects a person’s right and interests e.g. development applications, applications for other permits/licences, and other decisions that may be reviewable by the State Administrative Tribunal

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Subdivision application plan

Attachment b    Survey Diagram 97485  

 

OFFICER RECOMMENDATION

That Council:

1.         Pursuant to the Land Administration Act 1997, supports a proposal to dedicate as public road a portion of a pedestrian access way (PAW) on Lot 55 on Diagram 97485 Abbeys Farm Road, Yallingup, where the PAW adjoins proposed Lots 2 and 3 of Western Australian Planning Commission (WAPC) subdivision application file reference 159651; subject to:

a)         WAPC endorsement of a deposited plan for the subdivision application; and

b)        the proponent (owners of Lots 40 and 41) providing the City with written acknowledgement that:

i)         the proponent is liable for all costs associated with the dedication of the PAW as public road; and

ii)        the Council’s support for the proposal does not constitute approval by the City to construct a crossing (vehicle crossover) pursuant to Local Government (Uniform Local Provisions) Regulations 1996.

 

EXECUTIVE SUMMARY

The owners of Lots 40 and 41 Brash Road, Yallingup, are progressing through the conditions of a subdivision application approved by the Western Australian Planning Commission (WAPC) to subdivide Lots 40 and 41 into three lots (WAPC reference 159651) (see Attachment A). While proposed Lot 1 would retain direct road frontage to Brash Road, proposed Lots 2 and 3 would be separated from Brash Road by proposed Lot 1, and WAPC policy requires that new lots are created with direct road frontage.

 

Abbeys Farm Road lies to the south of proposed Lots 2 and 3, but separating the proposed lots from that road is a 0.1m wide strip of land, pedestrian access way (PAW) Lot 55, which was created to prevent vehicle access from Lots 40 and 41 to Abbeys Farm Road.

 


 

To facilitate the subdivision of Lots 40 and 41, the owners of Lots 40 and 41 (the proponent) propose that a portion of PAW Lot 55 is dedicated as public road (Abbeys Farm Road), where the PAW would adjoin proposed Lots 2 and 3.  This would result in proposed Lots 2 and 3 having direct road frontage with Abbeys Farm Road and satisfying WAPC policy for creation of new lots.

 

Pursuant to the Land Administration Act 1997 and subject to conditions, this report recommends the Council supports the proposal.

 

BACKGROUND

Lots 40, Lot 41 and PAW Lot 55 on Diagram 97485

Lots 40 and 41 on Diagram 97485 (Attachment B) are located at 30 and 32 Brash Road, Yallingup.  Lots 40 and 41 consist of a viticultural operation, residences and a significant portion of bushland with conservation value.  Abutting the southern boundary of Lots 40 and 41 is Lot 55, a 0.1m (100mm) wide strip of land that separates Lots 40 and 41 from Abbeys Farm Road.

 

Lot 55 on Diagram 97485 is designated as a PAW and was created as a condition of planning approval to prevent vehicle access from Lots 40 and 41 to Abbeys Farm Road (WAPC reference 103381, 1997).

 

Subdivision application to subdivide Lots 40 and 41

During 2020, the owners of Lots 40 and 41 applied to the WAPC (Western Australian Planning Commission) with a subdivision application (WAPC reference 159651) to create three lots from Lots 40 and 41 (see Attachment A).  Specifically, the application was for the creation of two conservation lots and one agriculture lot, utilising provisions available under WAPC Development Control Policy 3.4, section 6.5 “Conservation of biodiversity and natural heritage”.  WAPC approved the subdivision application subject to conditions.

 

Referring to the subdivision plan (see Attachment A) for the subdivision, proposed Lot 1 outlines an area that is the existing viticultural operation and includes an existing residence.  Proposed Lot 1 has road frontage with Brash Road along the western boundary.

 

Proposed Lots 2 and 3 encompass the bushland. In addition to the bushland, Proposed Lot 2 has an existing residence and proposed Lot 3 has a building envelope for a future residence. It is a condition of subdivision application approval that a restrictive covenant is placed on the titles of proposed Lots 2 and 3 to restrict uses of the land and to protect the areas identified for conservation.

 

Road frontage and WAPC endorsement for deposited plan of the subdivision

The proposed Lots 2 and 3 would not have direct road frontage, as proposed Lot 1 separates Proposed Lots 2 and 3 from Brash Road, and PAW Lot 55 separates proposed Lots 2 and 3 from Abbeys Farm Road. As the developer progresses towards meeting the conditions of subdivision application approval, the WAPC has advised that they would not be willing to endorse a survey plan for the subdivision until the issue of road frontage is resolved.

 

This position of the WAPC is consistent with WAPC’s “Operation Policy 1.1:  Subdivision of land – general principles” (February 2020).  Paragraph 3.10.1 relates to vehicular access and it states:

New lots will be created only where each lot has, or can be, provided with direct frontage access to a constructed public road, which is connected to the road system of the locality…  This is to ensure the provision of public utility and other services as well as to provide vehicular and pedestrian access to the lot. Subdivision and subsequent development should not compromise the safety and function of existing or proposed regional roads.

 


 

PAWs and their uses

PAWs may be created and vested in the Crown under section 152 of the Planning and Development Act 2005.  Prior to the proclamation of that Act, PAWs were created under section 20A of the Town Planning and Development Act 1928.

 

Typically, PAWs form part of a pedestrian movement network throughout a neighbourhood and should be a minimum of 8 metres wide (WAPC “Liveable Neighbourhoods”, Draft 2015).  However, narrow strips (typically 0.1m) of PAW have been used in the past to separate private property from a public road, thereby preventing vehicle access to that road. It was for this reason that PAW Lot 55 was created during 1999 as a condition of planning approval (WAPC reference 103381).

 

Rather than using 0.1m strips of PAW, other instruments are now used during the planning and development process to prevent vehicle access from new lots to a public road. This includes section 150 of the Planning and Development Act 2005, and use of development exclusion areas, vegetation buffers and noise bunds.

 

Controlling access to rural roads

Generally, controlling access to a road makes the traffic flow smoother and the road safer for the following reasons (WAPC Policy No. DC 5.1 Regional Roads – Vehicular Access, 1998):

Turning traffic (both leaving and entering the road) causes conflict and is thereby a contributory cause of accidents. Research shows that the majority of accidents happen adjacent to junctions and driveways where most turning movements occur. Accident rates are consistently higher on roads where access is permitted than on roads with full or partial access control. Furthermore, the accident rate increases as the number of access points along the road increases.

Junctions and driveways contribute to delays and congestion, as turning vehicles both slow and interrupt the free flow of traffic. Where commercial development abuts the road, these effects are greater because commercial development generates more turning traffic than residential developments.

 

Abbeys Farm Road and the road hierarchy

Abbeys Farm Road connects Caves Road with Wildwood Road. With reference to the Main Roads Western Australia document “Road Hierarchy for Western Australia – Road Types and Criteria”, Abbeys Farm Road is classed as a “local distributor”.  According to the document, rural local distributor roads are designed for “efficient movement of people and goods” and frontage access from adjoining property should be “limited whenever possible”.

 

In contrast, Brash Road is classed as “access road”. These roads provide “access to abutting properties with amenity, safety and aesthetic aspects having priority over the vehicle movement function.”

 

The City’s traffic count information shows Abbeys Farm Road averages 433 vehicles per day, with a peak exceeding 800 vehicles per day.  A significant portion of that traffic is likely to be tourism related given commercial tourism establishments are operating within the area.

 

The use of the 0.1m wide PAW along Abbeys Farm Road to prevent vehicle access from adjoining property is consistent with developments along other rural roads throughout the “Commonage Precinct”, including along Biddle Road, Commonage Road, Hayes Road, Marrinup Drive and Wildwood Road.  These roads are also classed as “local distributors”.  However, the lot sizes of the developments along those roads are considerably smaller than the areas of proposed Lots 2 and 3, at 19.7 hectares and 18.9 hectares respectively.

 

Vehicle crossovers

A vehicle crossover is the point where the driveway from a property crosses over the verge of a public road and connects with the constructed road. The construction of vehicle crossovers are subject to the Local Government (Uniform Local Provisions) Regulations 1996. Pursuant to those regulations, vehicle crossovers (or “crossings”, as referred to in the Regulations) may be constructed by property owners on approval of local government and to local government specification.

 

The conditions of approval for the subdivision of Lots 40 and 41 require that an access easement is created over an existing driveway on proposed Lot 1 to the benefit of proposed Lot 2.  This would provide vehicle access from proposed Lot 2 to Brash Road. Given the access easement and given no driveway is currently proposed from proposed Lot 2 building envelope to Abbeys Farm Road, the owners may not require a vehicle crossover on Abbeys Farm Road.  (According to WAPC policy, direct road frontage is required in addition to the access easement to Brash Road for provision of services such as power and telecommunications).

 

For proposed Lot 3, the bushfire management plan for the subdivision of Lots 40 and 41 proposes a private driveway is constructed (to bushfire management requirements) from the building envelope (on proposed Lot 3) to and over the existing firebreaks along the eastern lot boundary, and then over the firebreak parallel with the southern lot boundary.  The private driveway would enter Abbeys Farm Road at a vehicle crossover located approximately 100m from the eastern boundary of proposed Lot 3.

 

Construction of a vehicle crossover on Abbeys Farm Road from proposed Lots 2 or 3 would be subject to: 

(a)       approval by the City;

(b)       clearing of native vegetation regulations;

(c)       the City’s standards and specifications for vehicle crossovers; and

(d)       applicable Australian Standards and Main Roads WA guidelines.

 

Proposal to dedicate PAW Lot 55 as public road

To resolve the road frontage issue and to progress the subdivision of Lots 40 and 41 Brash Road, the owners of Lots 40 and 41 propose that a portion of PAW Lot 55 is dedicated as public road. With a portion of the PAW dedicated as public road, proposed Lots 2 and 3 would have direct frontage access to Abbeys Farm Road.

 

As PAW Lot 55 is Crown land, the land is subject to the Land Administration Act 1997. That Act has provisions for the dedication of land as public road.

 

This report seeks the Council’s support for the proposal to dedicate portion of PAW Lot 55 as public road, pursuant to the Land Administration Act 1997, allowing the subdivision of Lots 40 and 41 to proceed, subject to conditions.

OFFICER COMMENT

PAW Lot 55 was created during 1999, as a condition of subdivision application approval (WAPC reference 103381) to prevent vehicle access from adjoining Lots 40 and 41 to Abbeys Farm Road. The proposal from the owners of Lots 40 and 41 to dedicate portion of PAW Lot 55 as a public road essentially reverses that earlier condition of planning.

 


 

A review of the City’s records relating to the 1999 subdivision of Sussex Location 919 into Lots 40 and 41 (File 1234SUB) did not reveal why planning conditions required vehicle access to Abbeys Farm Road should be prevented. At the time, planning and development officers may have considered the impacts of the more intensive nature of a viticultural industry on the land, and the potential for commercial and tourism development complementing that industry. Increased viticultural and commercial traffic turning from Abbeys Farm Road into both Lots 40 and 41 may have adversely impacted traffic flow and road safety along Abbeys Farm Road.

 

Other reasons planning and development officers may have considered a need to restrict vehicle access from Abbeys Farm Road to Lots 40 and 41 include the road geometry, drainage, projected growth of traffic volume and protection of roadside vegetation.

 

The current subdivision application to subdivide Lots 40 and 41 (WAPC reference 159651) proposes three new lots. Proposed Lot 1 encompasses the entire viticultural operation on the land and has road frontage access with Brash Road along the western boundary of the proposed lot. The proposal to remove portion of PAW Lot 55 (by dedicated as public road) does not include the portion of the PAW abutting proposed Lot 1, so traffic may continue to only enter and exit proposed Lot 1 from Brash Road.

 

Proposed Lots 2 and 3 encompass the bushland with a building envelope on each.  As a condition of subdivision application approval, the bushland on proposed Lots 2 and 3 are required to be protected by a restrictive covenant. Apart from residential development on the proposed building envelopes of proposed Lots 2 and 3, any further development should be limited to what is permitted by the restrictive covenant and supported by a bushfire management plan.

 

Given the proposed Lots 2 and 3 would primarily be for residential and conservation uses, and given further development on those lots for additional purposes is unlikely, vehicle movements to and from those lots should result in minimal disruption to traffic flow along Abbeys Farm Road. On that basis, officers recommend that the Council supports the proposal to dedicate a portion of PAW Lot 55 Abbeys Farm Road where it adjoins proposed Lots 2 and 3.  However, the Council’s support for the proposal should be conditional.

 

Firstly, the PAW should not be removed (dedicated as public road) if the subdivision does not proceed. The Council’s support for the proposal should be subject to the WAPC’s endorsement of a deposited plan for the subdivision of Lots 40 and 41.

 

Secondly, the City should not be liable for any costs associated with the proposal. This includes surveys, legal costs, or any other costs that might otherwise be incurred by the City or the State of Western Australia. The Council’s support for the proposal should be subject to costs being borne by the proponent (the owners of Lots 40 and 41).

 

Thirdly, the Council’s support for the proposal should not imply that the City approves construction of a vehicle crossover on Abbeys Farm Road for proposed Lots 2 or 3.  Construction of a vehicle crossover is subject to provisions of the Local Government (Uniform Local Provisions) Regulations 1996.

 

Should the Council support the proposal, the City may then prepare a package requesting dedication of portion of PAW Lot 55 as public road and forward that package to the DPLH (the Department of Planning, Lands and Heritage acting for the Minister for Lands).  If DPLH approves the request from the City, DPLH may then arrange a survey plan and submit an order for the PAW Lot 55 to be dedicated as public road.

Statutory Environment

The Land Administration Act 1997 applies to Crown land and has provisions to dedicate land as public road, with the subsidiary legislation Land Administration Regulations 1998.

 

The Local Government (Uniform Local Provisions) Regulations 1996 applies to crossings (or vehicle crossovers) which are the extensions of a driveway from a private property over a road verge to the where the driveway meets the constructed public road.

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. Costs associated with the dedication of portion of PAW Lot 55 as public road should be borne by the proponent.

Stakeholder Consultation

The proposal to close portion of PAW Lot 55 and dedicate the land as public road was advertised in the ‘City Connect’ of the Busselton Dunsborough Times, 7 May 2021.

 

Written notices of the proposal were sent to owners and occupiers of nearby property and to public utilities with services within the area.

 

No objections have been received.

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 or a medium or greater level have been identified.

Options

As an alternative to the proposed recommendation, the Council could support a proposal to dedicate as public road a portion of PAW Lot 55 on Diagram 97485 Abbeys Farm Road, Yallingup, where the PAW adjoins proposed Lot 3 only. This option may result in the rejection of the subdivision application to subdivide Lots 40 and 41 into three lots as approved (with conditions) by the WAPC. This is due to WAPC policy which requires all new lots to have direct road frontage.

CONCLUSION

This report recommends the Council supports the proposal to close portion of PAW Lot 55 on Diagram 97485 Abbeys Farm Road, Yallingup.  The proposal facilitates the subdivision of Lots 40 and 41 Brash Road, as approved (with conditions) by the Western Australian Planning Commission.

 

The planning restrictions to be placed on proposed Lots 2 and 3 should minimise the impacts on traffic flow along Abbeys Farm Road by traffic entering and exiting the proposed lots.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

A package requesting dedication of portion of PAW Lot 55 may be prepared and forwarded to the Department of Planning, Lands and Heritage (acting for the Minister for Lands) within one week of the Council meeting minutes being published.


Council

102

23 June 2021

14.1

Attachment a

Subdivision application plan

 


Council

103

23 June 2021

14.1

Attachment b

Survey Diagram 97485

 


Council                                                                                      109                                                                    23 June 2021

14.2           RFT 06/21 CONSTRUCTION OF THE BUSSELTON PERFORMING ARTS AND CONVENTION CENTRE (BPACC)

STRATEGIC THEME

LIFESTYLE - A place that is relaxed, safe and friendly with services and facilities that support healthy lifestyles and wellbeing.

STRATEGIC PRIORITY

2.4 Establish a performing arts facility for the District.

SUBJECT INDEX

Tenders

BUSINESS UNIT

Major Projects and Facilities

REPORTING OFFICER

Manager Major Projects and Facilities - Eden Shepherd

AUTHORISING OFFICER

Director, Engineering and Works Services - Oliver Darby

NATURE OF DECISION

Contractual: To enter into a contract e.g. a lease or the award of a tender etc.

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Confidential Tender Evaluation Report  

 

OFFICER RECOMMENDATION

That the Council:

1.         Acknowledges receipt of the tender submissions for RFT 06/21 Construction of the Busselton Performing Arts and Convention Centre; and

2.         Declines to accept any tender; and

3.         Reviews design options and associated impacts and, subject to not receiving any further funding, undertakes a community survey to help inform decisions on the future of the project. 

 

EXECUTIVE SUMMARY

The City of Busselton invited tenders under Request for Tender, RFT 06-21 Construction of the Busselton Performing Arts and Convention Centre (RFT 06-21), for a suitably qualified contractor to construct the Busselton Performing Arts and Convention Centre.

 

This report documents the results of the tender evaluation and makes a recommendation to Council to decline to accept any tender on the basis that the tenders received exceed the project budget. It also recommends the Council review design options and associated impacts and then undertake a community survey to help inform decisions about the future of the project.

 

BACKGROUND

The Busselton Performing Arts and Convention Centre (BPACC) is planned as a destination for performing arts, conferences, trade shows and conventions.  It will provide the City of Busselton with an iconic venue of quality, contemporary design and latest technologies. 

 

The need for the venue was initially identified in 2007 and since then feasibility reports, project planning and comprehensive stakeholder engagement has occurred to ensure the viability, support and long term sustainability of the centre. The development of the facility has been identified in cultural plans and through the City of Busselton’s strategic community planning processes over consecutive years as a community priority to provide social and cultural benefits, in addition to being an economic driver.

 

The BPACC will reside between and integrate the ArtGeo Gallery and the Weld Theatre along Queen Street, with both buildings being of cultural significance. This has been a key consideration in the conceptual design of the building aesthetics along with operational integration between new and existing facilities. 

 

The project is jointly funded by the City of Busselton and the Federal Government. The Federal Government funding has been extended through to 30 June 2023 for completion of the project.  The City also continues to lobby and apply for grant / investment opportunities through both the Federal and State Government and private sector. 

 

The project scope for RFT 06/21 incorporates but is not limited to the following:

·        a traditional performing arts auditorium with a minimum of 600 seats;

·        stage with capacity to accommodate a symphonic orchestra;

·        adjoining studio/rehearsal/function and conference facilities with operational flexibility to hold small or large events;

·        multipurpose foyer/function space capable of supporting larger events, conferences, trade shows;

·        administration and technical support space;

·        service kitchens;

·        an A class gallery; and

·        integration of existing Weld Theatre Building and ArtGeo Building with the new building. 

 

At the Council meeting on 10 March 2021, Council resolved that (in part and in relation to BPACC):

 

“it will further consider and decide whether to proceed with the project on the receipt of construction tenders and in conjunction with considering those tenders.”

 

Construction tenders have been received and it is now appropriate for Council to consider those tenders and make further decisions about the BPACC project.

OFFICER COMMENT

RFT 06/21 was issued as a closed request for tenders on Friday 19 March 2021 and closed at 2:00pm on Friday 7 May 2021.

 

The City issued seven sets of tender documents to the registered builders who had pre-qualified via an Expression of Interest process (EOI02/20) for the project.  Three tender submissions were received from the following companies:

·        Broad Group Holdings Pty Ltd

·        Perkins (WA) Pty Ltd

·        Pindan Constructions Pty Ltd

 

In addition to their conforming tender, Perkins (WA) Pty Ltd submitted a non-conforming tender. The non-conforming tender proposed an alternative construction program, specific tender clarifications and proposed contract amendments at a reduced price. The reduced price significantly exceeded the project budget and the evaluation panel elected to reject the non-conforming tender pursuant to Regulation 18(2) of the Local Government (Functions and General) Regulations 1996.

 

On 18 May 2021, at a general meeting of Pindan Constructions Pty Ltd, it was resolved that the company be wound up and that liquidators be appointed. Consequently the tender received from Pindan Constructions Pty Ltd was also excluded from the tender evaluation process.

 


 

Assessment Process

In accordance with the City’s procurement practices and procedures, tender assessments were carried out by a tender evaluation panel comprising City officers with relevant skills and experiences. 

 

The tender assessment process included:

·        Assessment against relevant compliance criteria.  The compliance criteria were not point scored.  Each submission was assessed on a Yes/No basis as to whether each criterion was satisfactorily met. 

·        The assessment of tenders against the following qualitative criteria; weighted according to the table below:

 

Criteria

Weighting

·    Tendered price

50%

·    Key Personnel Skills and Experience

5%

·    Demonstrated Understanding

25%

·    Value Management

20%

 

The net tendered price was scored using the ‘average based scoring method’ recommended by WALGA in the Local Government Purchasing and Tender Guide. 

 

The qualitative criteria were scored depending on the extent to which each tenderer was able to appropriately satisfy each criteria.  The tenders were then scored and ranked to determine the most advantageous outcome to the City, based on principles of representing best value for money. 

 

Summary of Assessment Outcomes

The outcome of the evaluation panel’s assessment was that Broad Group Holdings Pty Ltd was determined to be the highest ranked tenderer. 

 

The confidential report attached (Attachment A) provides further detail in relation to the relative merits of each of the individual tenderers.

 

Price Considerations

The budget for the construction of the BPACC is $24.5 million, with the overall project budget being $28.5 million (excluding GST). All tenders exceeded the budget with the lowest priced tender exceeding the budget by approximately $13 million, excluding consideration of any value management options. The elevated prices received are due largely to the prevailing construction market conditions where, due to high demand, prices for materials and trades have been significantly inflated. Steel, concrete, and timber prices have risen significantly, all of which are a major component of the design. This is a trend across the construction industry, with other local governments also finding themselves in similar positions for recently tendered works.

 

Value management, scope changes and the project budget

Despite the fact that all tenders exceeded the project budget, each tenderer provided detailed value management options that have the potential to generate significant savings. Value management options included substituting materials and proposing alternative methodologies. Unfortunately savings from value management alone are not significant enough to bring the total cost to an acceptable level.  To achieve this, officers consider that design changes would be necessary, in addition to value engineering options.

Officers believe there is value in exploring what changes can be made without significantly compromising on functionality and operational efficiency, noting that some compromises may need to be made. In speaking to those within the construction industry, material prices are not likely to return to previous levels due to increased quality standards, and current logistical and supply factors. 

 

Evaluation Panel Recommendation

Based on the Evaluation Panel’s assessment and consideration of the project budget, it is therefore recommended that Council decline to accept any tender.  Alternatives are proposed in the Options section of this report. 

 

Community Consultation

As per its resolution of the 10 March 2021, Council determined the receipt of construction tenders as a ‘hold point’ at which it would, in conjunction with considering the tenders, consider whether to proceed with the BPACC.

 

While the tenders received have exceeded the project budget, there is, as noted above, opportunity to explore changes to the building design which may provide for a functional facility closer to the City’s budget. 

 

Given this, and noting the level of public interest in the project, it is recommended that Councillors review design options and associated impacts, and then further engage with the community around the continuing priority of a performing arts and convention facility, either in its current form or based on a revised concept informed by the Stakeholder Reference Group and the BPACC Councillor Working Group.

 

If Council did wish to further engage with the community, officers would recommend the appointment of an independent survey company to conduct a random sample survey.  Survey results would be weighted to provide for a statistically valid and representative sample.  An opt-in survey option can also be provided, with opt in data analysed and reported on alongside the random sample data.  The independent survey company would work with the City on the survey design.  Information sessions are also recommended to support the survey and provide for informed comment.

Statutory Environment

The contract value is greater than $500,000.00, thus, in accordance with section 5.43(b) of the Local Government Act 1995 (the Act), read with Delegation DA01-7, the tender is required to go before the Council. 

 

In terms of section 3.57 of the Act, a local government is required to invite tenders before it enters into a contract of a prescribed kind under which another person is to supply goods and services.  Part 4 of the Local Government (Functions and General) Regulations 1996:

·        Requires that tenders be publicly invited for such contracts where the estimated cost of providing the required goods and/or service exceeds $150,000; and

·        under Regulations 11, 14, 18, 20 and 21A provides the statutory framework for inviting and assessing tenders and awarding contracts pursuant to this process. 

 

With regard to the RFT, City officers have complied with abovementioned legislative requirements. 

Relevant Plans and Policies

The City’s purchasing policies, its occupational health and safety and asset management were all relevant to the RFT, and have been adhered to in the process of requesting and evaluating tenders. 

 

The development of a performing arts facility for Busselton has been identified as a priority project in the City of Busselton Strategic Community Plan since 2010 (2013, reviewed 2015; 2017, reviewed 2019 and 2021).

Financial Implications

The project is jointly funded by the City of Busselton and the Commonwealth Government Department of Infrastructure, Transport, Cities and Regional Development.  As stated earlier the project budget is $28.5 million (excluding GST).

 

The proposed community survey will cost between $20,000 and $25,000 and can be funded through a carry-over of funds from within the 2020/2021 Council and CEO operational budgets.

Stakeholder Consultation

Consultation with the relevant community and stakeholder groups have taken place to develop a functional detailed design of the venue.  The community groups consulted have included:

·        Acting Up

·        Australia South West

·        Aboriginal Advisory Group

·        Business Events Perth

·        Busselton Repertory Club

·        Busselton Chamber of Commerce

·        Margaret River Busselton Tourism Association

·        Busselton Town Team

·        High Schools

·        Undalup Association

·        Local choir and dance groups

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with the intention being to identify risks which, following implementation of controls, are identified as medium to greater.  No risks of a medium or greater level have been identified with the officer recommendation. 

 

Options

As an alternative to the proposed recommendation the Council could:

1.         Accept the tender from Broad Group Holdings Pty Ltd. This would require the identification and / or sourcing of additional funding.

2.         Decline to accept any tender and review design options and associated impacts before determining whether to undertake a community survey, noting that the detail of the survey will be dependent on the design review.

3.         Decline to accept any tender, continue to seek funding, and reconsider the project at a later stage or on receipt of further funding.

4.         Decline to accept any tender and not proceed with the project.  This would require the return of $10.35 million in Federal Government funding.

CONCLUSION

It is recommended that Council not accept any tender because the tenders have all exceeded the project budget. It is further recommended that Council reviews design options and, subject to not receiving further funding, undertakes a community survey to help inform decisions on the future of the project.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The officer recommendation can implemented immediately with a community survey taking place in mid-July 2021.


Council                                                                                      114                                                                    23 June 2021

14.3           RFT 10/21 DESIGN, SUPPLY OF EQUIPMENT AND UPGRADE OF NINE PUBLIC OPEN SPACE AREAS: APPOINTMENT OF SUCCESSFUL TENDERER

STRATEGIC THEME

LIFESTYLE - A place that is relaxed, safe and friendly with services and facilities that support healthy lifestyles and wellbeing.

STRATEGIC PRIORITY

2.9 Provide accessible and connective pathways and cycleways.

SUBJECT INDEX

Tenders

BUSINESS UNIT

Operation and Works Services

REPORTING OFFICER

Parks and Gardens Coordinator - Bradley Reynolds

AUTHORISING OFFICER

Director, Engineering and Works Services - Oliver Darby

NATURE OF DECISION

Contractual: To enter into a contract e.g. a lease or the award of a tender etc.

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Concept Designs

Attachment b    Location Plan

Attachment c    Confidential RFT 10/21 Evaluation Report  

 

OFFICER RECOMMENDATION

That the Council:

1.         Pursuant to RFT 10/21 ‘Design, Supply of Equipment and Upgrade of Nine Public Open Space (POS) Areas’, accept the tender from Sanpoint Pty Ltd as trustee for the Fiore Family Trust trading as LD Total for $1,047,910.41 excluding GST as being the most advantageous tender (Successful Tenderer) subject to minor variations to be negotiated in accordance with Regulation 20 of the Local Government (Functions and General) Regulations 1996 (FG Regs) and such variations and final terms not exceeding the overall project budget.

2.         Delegate power and authority to the Chief Executive Officer to enter into a contract with the Successful Tenderer for the supply of the relevant goods and services.

 

EXECUTIVE SUMMARY

The City of Busselton invited tenders under Request for Tender RFT 10/21 Design, Supply of Equipment and Upgrade of Nine Public Open Space Areas, Busselton (RFT 10/21). RFT 10/21 called for respondents to design, supply equipment and construct nine public open space areas within the City of Busselton. Nine detailed scale concept plans were included in RFT 10/21.

 

These included:

·        Monash Way POS

·        Wagon Road POS

·        Limestone Quarry POS

·        Quindalup Old Tennis Court Site

·        Tulloch Street/ Geographe Bay Rd

·        Kingfish/Costello POS

·        Dolphin Road POS

·        Kingsford Rd POS

·        Dawson Park POS


 

This report summarises the submission received, and recommends that Council:

·        endorse the outcome of the evaluation panel’s assessment;

·        delegate power and authority to the CEO to negotiate and agree final terms and conditions with the Successful Tenderer Sanpoint Pty Ltd as trustee for the Fiore Family Trust trading as LD Total; and

·        enter into a contract(s) for the design, supply of equipment and upgrade of nine public open space areas within the City of Busselton.

 

BACKGROUND

The Planning and Development Act 2005 requires public open space contributions to be made to the City of Busselton when developing residential land. These contributions can be in the form of land, cash or a mix of both as determined by the City. These maintain or improve recreation opportunities close to where development occurs, so the modified neighbourhood does not deteriorate as a result. Cash in lieu of public open space contributions have been paid by successive developers and accrued by the City over time to maintain or improve recreation facilities where land contributions are not appropriate. The payment is a proportion of the developable land value at the time and is professionally valued.

 

Section 154 of the Planning and Development Act 2005 (PD Act) sets out how this money is to be used:

a)         Land purchases for parks, recreation grounds or open spaces generally in the locality of where the funds originated;

b)        Repaying loans for the purchase of such land;

c)         Improvement or development of Public Open Spaces (POS);

d)        Reimbursing land owners who have had larger than required land parcels set aside by early owners.

 

The use of the funds must be approved by the Minister for Planning, a process managed by the Department of Planning, Lands and Heritage (DPLH). City officers have obtained Ministerial Approval to use approximately $1,166,600 of funds held in trust to maintain or improve POS at these locations:

·        Monash Way POS

·        Wagon Road POS

·        Limestone Quarry POS

·        Quindalup Old Tennis Court Site

·        Tulloh Street/ Geographe Bay Rd

·        Kingfish/Costello POS

·        Dolphin Road POS

·        Kingsford Rd POS

·        Dawson Park POS

 

RFT 10-21 called for respondents to price the design, supply delivery and installation of nine POS area upgrades in accordance with the attached concept designs (see Attachment A).

 


 

A brief scope for each project is as follows:

·        Monash Way POS: Playground renewal, shade sail installation, pump track installation.

·        Wagon Road POS: Playground renewal, shade sail installation, pathways renewal.

·        Limestone Quarry POS: Playground renewal, shade sail installation, pathways renewal.

·        Quindalup Old Tennis Court Site: Playground upgrade and shade sail installation.

·        Tulloh Street/ Geographe Bay Rd: Gym equipment installation, tree planting, bike racks, drink fountain and pathways.

·        Kingfish/Costello POS: Playground upgrade, seating and landscape.

·        Dolphin Road POS: Play space construction, seating, drainage swale, pathways and landscape.

·        Kingsford Rd POS: Playground renewal, shade sails, limestone pathways, tree planting and upgrade of open space area.

·        Dawson Park POS: Playground renewal, picnic settings, pathways and half-basketball court upgrade.

OFFICER COMMENT

The City received one compliant tender submissions from the following company:

·        Sanpoint Pty Ltd as trustee for the Fiore Family Trust trading as LD Total.

 

Assessment Process:

In accordance with the City’s procurement practices and procedures, an assessment was carried out by an evaluation panel comprising City officers with relevant skills and experience.

The assessment process included:

(a)       Assessing the submission received against relevant compliance criteria. The compliance criteria were not point scored. The submission was assessed on a Yes/No basis as to whether each criterion was satisfactorily met. The tender was deemed compliant; and

(b)       Assessing the submission received against the Qualitative Criteria and each Criteria was given a score in accordance with the rating scale detailed below.

 

Qualitative Criteria

Weighting

Tendered Price

40%

Relevant Experience, Key Personnel Skills and Experience

20%

Local Content

5%

Demonstrated Understanding

35%

 

The qualitative criteria were scored depending on the extent to which the tenderer was able to appropriately satisfy each criteria. The tendered price was then assessed together with the weighted qualitative criteria and scored to determine the an advantageous outcome to the City, based on principles of best value for money being that although price is a consideration, a tender containing the lowest price will not necessarily be accepted by the City and nor will the tender ranked the highest on the qualitative criteria.

 


 

Summary of Assessment Outcomes

The compliant submission received for RFT 10/21 from Sanpoint Pty Ltd as trustee for the Fiore Family Trust trading as LD Total provided a well-documented and detailed submission:

 

·        The submission received was processed through to qualitative criteria assessment on the basis that all terms and conditions and mandatory requirements of RFT 10/21 had been met.  

·        The submission was scored according to the qualitative criterion outlined above.

·        The net price was scored using the ‘Average Based Scoring Method’ recommended by WALGA in the ‘Local Government Purchasing and Tender Guide’.

·        The panel members individually assessed the qualitative criteria for each schedule, then met and applied an average to provide a final ranking. The scores were then added together to indicate the rankings.

 

Based on the combination of price and the qualitative criteria it is recommended that the tender from Sanpoint Pty Ltd as trustee for the Fiore Family Trust trading as LD Total be endorsed as the Successful Tenderer.

Statutory Environment

In accordance with section 3.57 of the Local Government Act 1995 (the Act), a local government is required to invite tenders before it enters into a contract of a prescribed kind under which another person is to supply goods and service. Part 4 of the Local Government (Functions and General) Regulations 1996:

·        requires that tenders be publicly invited for such contracts where the estimated cost of providing the required goods and/or service exceeds $250,000; and

·        under Regulations 11, 14, 18, 20 and 21A, provides the statutory framework for inviting and assessing tenders and awarding contracts pursuant to this process.

 

With regard to RFT 10-21, City officers have complied with abovementioned legislative requirements. As the Contract value is greater than $500,000, and in accordance with section 5.43(b) of the Act and Council delegation DA 1-07, Council endorsement of the Successful Tenderer is required.

 

The Head of Power to collect and spend money for Public Open Space is given by the Planning and Development Act 2005.

 

State Policy (DCP2.3) allows money to be spent on use or development of public open space purposes, for example: seating, earthworks, playgrounds, spectator cover, toilets, landscaping, etc.

 

Money can only be spent within recreation reserve boundaries, not roads or road reserves. The Minister for Planning must approve any spending proposal.

Relevant Plans and Policies

The City's purchasing policies, regional price preference, occupational health and safety, asset management, engineering technical standards and specifications were all relevant to RFT 10-21, and have been adhered to in the process of requesting and evaluating tenders.


 

Financial Implications

After the evaluation panel had satisfied itself that the Successful Tenderer was competent to complete the City’s requirements, City Officers revised the scope of the design together with the Successful Tenderer with the aim of bringing the tendered price within the project budgets.

 

Officers have assessed the submission against the available capital budget and can deliver the projects to community expectations without removing POS inclusions as per the approved concept plans. (see concept plans included as Attachment A).

 

The Design, Supply of Equipment and Upgrade of Nine Public Open Space Areas, Busselton will be funded from its existing 2020/21 budget allocation of $1,166,621.

 

Officers have completed an assessment of maintenance costs through the Donated and Built Assets budgeting process, which has identified a $40,300 additional annual maintenance cost for these identified projects. This includes additional maintenance including bi-annual shade sail removal/installation, comprehensive playground inspection, soft fall cleaning and general repairs. This has been requested as part of the 2021/22 draft budget.

 

The balance of the budget has been used on developing the preliminary designs and investigations of the various sites.

Stakeholder Consultation

The City conducted community consultation with a letter drop detailing the proposed inclusions of the POS Upgrade including a detailed Concept Plan. The letter was distributed to residents and ratepayers within 300m radius of the surrounding POS upgrades, with the option to provide feedback to Council by letter, email or the ‘YourSay’ portal. The City received no community feedback.

Risk Assessment

An assessment of the potential implications of implementing the officer’s recommendation has been undertaken using the City’s risk management framework, with the intention being to identify risks which, following implementation of controls, are identified as medium or greater. There are no such risks identified, with the Preferred Tenderer assessed as being capable of delivering the services to a suitable service level. 

Options

As an alternative to the proposed recommendation, the Council could not award the tender. This would mean re-advertising the tender, resulting in significant delays to both the contract award and the development, construction, renewal and upgrade of the nine parks. For the reasons provided in this report, the abovementioned option is not recommended.

 

CONCLUSION

It is recommended that Council accept the Tender RFT 10-21 Design, Supply of Equipment and Upgrade of Nine Public Open Space Areas, Busselton from Sanpoint Pty Ltd as trustee for the Fiore Family Trust trading as LD Total as the most advantageous to the City, subject to minor variations to be negotiated by the CEO, not exceeding the overall project budget.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Officers anticipate to finalise contract documents and award the contract by 30 June 2021, with all nine sites anticipated to be completed by October 2021, noting at present that the construction of play equipment has a considerable lead time.


Council

125

23 June 2021

14.3

Attachment a

Concept Designs

 












Council

126

23 June 2021

14.3

Attachment b

Location Plan

 


Council                                                                                      129                                                                    23 June 2021

15.             Community and Commercial Services Report

15.1           BUSSELTON FORESHORE - CAROUSEL GROUND LEASE

STRATEGIC THEME

LEADERSHIP - A Council that connects with the community and is accountable in its decision making.

STRATEGIC PRIORITY

4.1 Provide opportunities for the community to engage with Council and contribute to decision making.

SUBJECT INDEX

Economic and Business Development

BUSINESS UNIT

Commercial Services

REPORTING OFFICER

Manager Economic and Business Development Services - Jennifer May

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

NATURE OF DECISION

Contractual: To enter into a contract e.g. a lease or the award of a tender etc.

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Busselton Foreshore Reserve 38558 Carousel Location

Attachment b    Carousel Lease Area Survey  

 

OFFICER RECOMMENDATION

That the Council:

1.         Advertises the proposed disposition of property (by way of Lease) in accordance with Section 3.58 of the Local Government Act 1995 for the term and conditions outlined in this report and if there are no adverse objections authorise the CEO to enter into a lease in accordance with recommendation 2.

2.         Resolves to enter into a lease agreement, subject to the Minister for Lands approval, with Joyland Amusement Pty Ltd for an area of approximately 135 square metres, on a portion of Lot 565 on Reserve 38558, Busselton Foreshore, Busselton as shown on Attachment A, subject to the terms and conditions of the lease including the following:

(a)       term of 5 years with an option for 5 years;

(b)       Rent: Year 1 - $2825 + GST

 Year 2 - $4387.50 + GST

 Year 3 - $5850 + GST

 Year 4 - $5850 + CPI + GST

 Year 5 - Previous years rent + CPI + GST

(c)       other terms and conditions appropriate to the Busselton Foreshore.

 

EXECUTIVE SUMMARY

The purpose of this report is to seek formal Council approval to enter into the necessary lease agreements with Joyland Amusement Pty Ltd for the installation and ongoing operation of a traditional carousel to be located on Lot 565 of Reserve 38558 on Busselton Foreshore. 

 

BACKGROUND

The Busselton foreshore is located along Geographe Bay and at the base of one of Western Australia’s most visited tourism attractions, the Busselton Jetty and Underwater Observatory.  Since 2009, Council has initiated public interest in and support for revitalising the Busselton foreshore and the existing Busselton Foreshore Master Plan (BFMP) was adopted by Council on 24 February 2016.

 

The BFMP covers an area of approximately 38 hectares and combines commercial, cultural and public open space on the Busselton foreshore, and aims at providing, among other things, a unique visitor and tourist experience.

Central to the Foreshore redevelopment is the “Jetty Precinct”, the tourism and activity hub of the Busselton Foreshore. This element of the Foreshore provides an all-important connection integrating the beachfront, Foreshore precincts, the Busselton Cultural Precinct and the Central Business District.

 

Key to activation and revitalisation of the Jetty Precinct are the food and beverage establishments and smaller enterprises such as seasonal kiosks and an amusement carousel, which aligns with the objectives of the Busselton Foreshore Masterplan.

 

In May 2017, an Expression of Interest (EOI) was advertised by the City of Busselton for the supply, installation and ongoing operation of a quality, traditional carousel under a ground lease arrangement, to be located within the tourism and commercial activity hub of the Busselton Foreshore. This report presents the outcomes since the EOI process including negotiations that have continued on during this time.

OFFICER COMMENT

An EOI for the supply, installation and ongoing operation of a quality, traditional carousel to be located on the Busselton Foreshore was advertised in May 2017 for a total of three weeks, both locally and state wide with one submission received from the proponent Joylands Amusements Pty Ltd. Joylands submission detailed their company profile, experience and that they were one of the largest suppliers of mobile amusement devices providing high quality family entertainment in Australia. Officers evaluated their submission and determined that the proponent met the qualifying criteria of the EOI and that the City should proceed with further discussions and negotiations for a ground lease.

 

Discussions with Joylands progressed in 2017 including lease terms and conditions however the proponent required a covering structure, such as a rotunda to be installed to protect the carousel from weather conditions and also allow for security fencing or shutters. The City investigated the installation of a rotunda however the costs of design and construction of a rotunda were not included in the budget at the time and the proponent was unable to contribute towards the total costs. As a result, a lease between the City and Joylands was not entered into, however a commitment by the City was made to consider a future budget allocation through the long term financial plan and to maintain the proponents preferred status resulting from the EOI process.

 

The 2019/20 adopted budget included an allocation to design and construct a rotunda on the Busselton Foreshore and Officers contacted the proponent to establish if they were still interested in progressing negotiations with the City now that a protective structure was going to be constructed. The proponent confirmed their interest and discussions occurred with regards to the dimensions and style of the rotunda to allow the carousel to fit within the structure and a RFQ was issued by the City for the design and construction of the rotunda in 2020/21. The COVID pandemic in early 2020 halted negotiations on a ground lease due to regional and interstate border closures and uncertainty around the tourism industry. Negotiations were re-established in early January 2021 and the agreed lease terms included in this report were finalised. The proponent is now in a position to order a new carousel, which will be manufactured in Europe and hence Officers are seeking endorsement of the proposed lease conditions from Council.

 

The proponent has requested a term of five years plus an option for five years to reflect the value of the investment of the carousel which has been estimated in the region of $200K-$250K including construction and delivery. Officers are also recommending that a tiered rental structure be considered with a 50% discount applied in year 1, a 25% discount in year 2 and the full rental amount charged in year 3.

 

 

 

The discounted rental structure has been negotiated to allow the proponent to market the carousel and take into the account the seasonal nature of Busselton and reduced trading through the winter months. A recent market valuation completed by the City’s Land Asset Management Officer has valued the ground lease at $42 per square metre on an unimproved basis, totalling a rental return of $5,720 per annum plus GST.

 

Negotiations with the proponent have resulted in an agreed ground lease of $43.33 per square metre resulting in a total rent return of $5,850 per annum plus GST. Notwithstanding the proponent does not enter into a lease with the City, the rotunda will be utilised as a shade structure for the public with a place to meet and sit, providing shelter from the summer sun or rain in winter.

 

Statutory Environment

When disposing of property whether by sale, lease or other means, a local government is bound by the requirement of section 3.58 of the Local Government Act 1995 which requires giving local public notice when disposing of property.

 

Local governments are compliant with the LGA if the procedure under section 3.58(3) is followed. This requires the publishing of prior notice to the local public of the proposed disposition which describes the property concerned, gives details of the proposal and invites submissions to be made before a specified date, not less than two weeks after the notice is first given. Any submissions received before the date specified in the notice must be considered.

 

Section 3.58(4) of the LGA requires that the disposition includes either a valuation not more than six months’ old or a declaration by resolution that a valuation older than 6 months is considered a true indication of the value at the time of the disposition.  A valuation of the Studios was obtained on 1 April 2021.

 

The land on which the Studios are located is within Reserve 35361, Lot 453, Deposited Plan 194423, Volume LR3115 Folio 243, being Crown Land for the designated purpose of Community and Cultural. 

 

The carousel site currently forms part of Lot 563, located within Reserve 38558 on the Busselton foreshore.  Reserve 38558 is Crown land vested in the City for recreation and tourism.

Relevant Plans and Policies

The officer recommendation aligns to the following adopted plans:

 

Busselton Foreshore Statement of Intent

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

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

 

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

 


 

Busselton Foreshore Master Plan (BFMP)

The BFMP is a strategic document that provides detailed guidance for the planning and development of the Busselton Foreshore extending between King Street and Ford Road and was prepared in parallel with Amendment No.173 to the City’s previous District Town Planning Scheme No. 20. The amendment rezoned the Site to ‘Special Purposes (Busselton Foreshore)’ to facilitate the redevelopment consistent with the Masterplan. The most recent amendment to the BFMP was adopted by Council (C1602/031) on 24 February 2016.

Financial Implications

The rental income from the carousel ground lease is valued at $5850 plus GST per annum. A discounted rental structure for year 1 through to year 3 has been proposed to allow the carousel operator to market the attraction and allow for seasonal (winter) impacts. As such the rental income being recommended for the first five years is as follows:

·        Year 1 - $2825 + GST

·        Year 2 - $4387.50 + GST

·        Year 3 - $5850 + GST

·        Year 4 - $5850 + CPI + GST

·        Year 5 - Previous years rent + CPI + GST

 

All rental income will be directed towards maintenance costs associated with the Busselton Jetty and, to the extent that the Minister for Lands agrees to it, towards foreshore maintenance, preservation and improvement.

Stakeholder Consultation

The City has worked with and had support from the Department Planning, Lands and Heritage for a ground lease to be entered into between the City and the proponent for a carousel on the Busselton Foreshore.  

Risk Assessment

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

Options

As an alternative to the proposed recommendation, the Council could resolve not to enter into a lease with Joylands Amusements Pty Ltd.

CONCLUSION

One of the key objectives of the Busselton Foreshore Master Planis to provide a unique experience for both tourists and the community. The addition of a traditional carousel located centrally within the Jetty Foreshore precinct will add to the vibrancy and attractiveness of the Foreshore along with the food and beverage offerings, nautical themed playground and Jetty experiences on offer. The proponent, Joylands Amusements Pty Ltd are a reputable, experienced amusement operator with operations throughout Western Australia that see an opportunity to operate a carousel on the Busselton Foreshore. Officers are recommending that subject to final approval from the Department of Planning, Lands and Heritage, that a ground lease is entered into with Joylands Amusements Pty Ltd.


 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Subject to final approval being sought from the Department of Planning, Lands and Heritage and there being no submissions from the section 3.58 advertising, a lease would be entered into as soon as practicable with the expectation that the carousel could be in place for the tourism season in 2022.


Council

132

23 June 2021

15.1

Attachment a

Busselton Foreshore Reserve 38558 Carousel Location

 


Council

133

23 June 2021

15.1

Attachment b

Carousel Lease Area Survey

 


Council                                                                                      137                                                                    23 June 2021

15.2           DESIGNATED AREA MIGRATION AGREEMENT - SOUTH WEST REGION

STRATEGIC THEME

OPPORTUNITY - A vibrant City with diverse opportunities and a prosperous economy.

STRATEGIC PRIORITY

3.2 Facilitate an innovative and diversified economy that supports local enterprise, business investment and employment growth.

SUBJECT INDEX

Economic and Business Development

BUSINESS UNIT

Commercial Services

REPORTING OFFICER

Manager Economic and Business Development Services - Jennifer May

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   South West Region DAMA Proposed Occupations  

 

OFFICER RECOMMENDATION

That the Council:

1.         Support the establishment of a South West region Designated Area Migration Agreement;

2.         Acknowledge the Shire of Dardanup as the Designated Area Representative for the South West region Designated Area Migration Agreement; and

3.         Commit to a $5,000 per annum contribution to the Shire of Dardanup for five years commencing 2021/22 to operate as the Designated Area Representative for the South West region Designated Area Migration Agreement.

 

EXECUTIVE SUMMARY

The onset of the COVID-19 pandemic in early 2020 has resulted in significant skilled and unskilled labour shortages across the South West region due to domestic and international border closures placing considerable pressures on our local businesses and economy. An initiative supported by Federal Member Hon. Nola Marino MP to investigate the establishment of a Designated Area Migration Agreement (DAMA) has now resulted in a business case and application to the Federal Government for a South West regional DAMA. The purpose of this report is to seek support for the South West region DAMA and a financial commitment from the Council of $5,000 for five years commencing from 2021/22.

 

BACKGROUND

A Designated Area Migration Agreement (DAMA) is a formal agreement between the Australian Government and a regional, State or Territory authority. It provides access to more overseas workers than under the standard skilled migration program. A DAMA operates under an agreement-based framework that provides flexibility for regions to respond to the unique conditions of their economic and labour markets.

 

A DAMA is a two-tier framework covering a defined regional area. The first tier is an overarching five-year deed of agreement (head agreement) with the region’s representative. The second tier comprises individual labour agreements with employers under the settings of the head agreement for that region.

 

DAMA labour agreements are between the Australian Government and endorsed employers operating within the relevant region.  A DAMA:

·        is generally in effect for five years; and

·        uses the subclass 482 Temporary Skills Shortage (TSS), subclass 494 Skilled Employer Sponsored Regional (Provisional)*, and subclass 186 Employer Nominated Scheme (ENS) visa programs.

 

Employers must seek and gain endorsement from the Designated Area Representative (DAR) before lodging a labour agreement request.

 

Under the DAMA framework, employers in designated areas experiencing skills and labour shortages can sponsor skilled and semi-skilled overseas workers. Individuals cannot directly access a DAMA. Individuals need to be sponsored by an employer operating in a designated region for an occupation that is specified in the head agreement.

 

A DAMA ensures employers recruit Australian citizens and permanent residents as a first priority. Among other things, employers must demonstrate a genuine attempt to recruit Australians prior to getting access to a DAMA labour agreement.

 

Following the COVID-19 pandemic and subsequent domestic and international border closures and restrictions put in place, many businesses and employers throughout the South West have had significant difficulties in recruiting skilled and unskilled employees resulting in considerable labour shortages that have impacted their ability to run their businesses.

 

Responding to a labour shortage across the South West region, a number of business owners from the private sector, with the support of Federal Member Hon. Nola Marino MP, explored the opportunity of a South West region DAMA by funding a feasibility study by engaging consultants, Perdaman. Whilst the viability of this opportunity was clearly established, the investigation also determined that the private sector was unable to be the DAR as this role had to be undertaken by a regional, State or Territory authority. At this time, the Shire of Dardanup became significantly involved in the investigative process of establishing a South West region DAMA and commenced a process of seeking the support of the other 11 South West region local governments. 

 

On 27 November 2020, at the meeting of the South West Country Zone of the Western Australian Local Government Association (SWALGA), a presentation from Perdaman addressed SWALGA representatives and the following motion was passed including the support of the City of Busselton:

 

That the South West Country Zone of WALGA support the establishment of a DAMA across the South West region and requests individual local government to consider contributing towards a 5 year MOU to support the implementation of the DAMA through a Designated Area Representative body (DAR), which is still to be determined.”

 

Following this meeting it was determined by consensus of the South West region CEO’s that the Shire of Dardanup would be best placed to become the DAR for the DAMA given their already strong leadership and commitment to this opportunity. In accepting this role the Shire of Dardanup is now requesting a financial contribution from all South West region Local Governments to support the employment of an administration resource to manage the obligations of a DAR.


 

OFFICER COMMENT

A draft business case from Perdaman has now been completed. To establish a South West region DAMA, this business case needs to be lodged and approved by the Commonwealth Government. A major part of the role of Perdaman in producing the business case was to undertake a labour assessment of labour shortages and ensure there is no conflict with other existing agreements (such as in the case of agricultural workers). 

 

If approved by the Commonwealth Government, any employer in the South West region may access the DAMA via the DAR after providing sufficient evidence (based on a set criteria) satisfying that they have been unable to attract appropriate Australian citizen and permanent resident candidates to an employment vacancy. The occupations identified most likely to be endorsed for the South West region DAMA can be viewed in Attachment A. Council should also be aware that once a DAMA is in place for the South West region, the listed labour shortage occupations can be amended with approval to capture additional areas of skilled and unskilled labour occupations as required.

 

Taking on the role of DAR is considerable and the Shire of Dardanup should be commended for this initiative. As the funding contribution can only be requested and not mandated from South West region Local Governments, the inherent financial risks associated of taking on the role of the DAR by the Shire of Dardanup are significant if consensus funding support is not achieved. Although it is already understood that several Local Governments have provided a five year funding commitment to the project, if one or more Local Government chooses not to make a funding contribution the DAMA will not exclude access to the program for their local businesses, however this action would place undue financial pressure on the Shire of Dardanup to operate as a DAR.   

 

The request to the City of Busselton is $5,000 and it is further understood that the request to other South West region local governments may be slightly greater for larger organisations and slightly less for smaller organisations to form an average of $5,000 per Local Government and generate $60,000 per annum for the Shire of Dardanup over a five year period.

Statutory Environment

The Commonwealth Migration Act 1958 enables the establishment of a DAMA and the Local Government Act 1995 establishes the mechanism for expenditure of public funds by local governments.

Relevant Plans and Policies

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

Financial Implications

The City of Busselton’s financial contribution would be $5,000 per annum over five years and is considered a strong economic investment in businesses in the City of Busselton district. It is already clear that there are a number of occupations identified in the South West region DAMA where local employers are unable to fill vacancies and providing alternate mechanisms to address labour shortages must be considered beneficial for the local economy. The $5000 contribution would be funded from the Economic and Business Development budget.  

Stakeholder Consultation

The City of Busselton has not specifically undertaken any external stakeholder consultation in relation to this matter however as part of the investigation carried out by Perdaman, consultation was performed with businesses throughout the South West region with a number of workshops and business surveys distributed.

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.         Choose not to support the establishment of a South West region DAMA and not make a financial contribution;

2.         Choose to support the establishment of a South West region DAMA however make a different financial contribution to requested amount of $5000.

CONCLUSION

It is clear that there are significant labour shortages across a number of occupations and businesses that are located within the South West region and in particular the City of Busselton. The establishment of a South West region DAMA will provide further opportunities to local businesses to meet current employment requirements and to expand businesses into the future. While the City of Busselton is not required to contribute towards the financial costs of the DAR and associated tasks with having a regional DAMA, it is expected that City of Busselton businesses will benefit and that the costs of the DAR should not be completely attributed to the Shire of Dardanup and hence Officers are requesting the Council to support a $5000 per annum contribution for the next five years.  

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The business case and application for the South West region DAMA has been submitted to the Federal Government and once approved, the Shire of Dardanup will progress with creating the associated DAR resources and services as soon as practical.   


Council

139

23 June 2021

15.2

Attachment a

South West Region DAMA Proposed Occupations

 


 


Council                                                                                      145                                                                    23 June 2021

16.             Finance and Corporate Services Report

16.1           CITY OF BUSSELTON COMMUNITY ENGAGEMENT FRAMEWORK

STRATEGIC THEME

LEADERSHIP - A Council that connects with the community and is accountable in its decision making.

STRATEGIC PRIORITY

4.3 Make decisions that respect our strategic vision for the District.

SUBJECT INDEX

Community Engagement

BUSINESS UNIT

Governance Services

REPORTING OFFICER

Public Relations Coordinator - Meredith Dixon

Manager Governance and Corporate Services - Sarah Pierson

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

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

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Community Engagement Framework

Attachment b    Stakeholder Identification Table

Attachment c    Hard to Reach Stakeholders

Attachment d   Engagement Tools

Attachment e    Stakeholder Analysis Matrix

Attachment f    Engagement Plan Template  

 

OFFICER RECOMMENDATION

That the Council:

1.         Adopt the City of Busselton Community Engagement Framework as per Attachment A (the Framework) for the purposes of advertising for a period of 21 days, with a report outlining submissions and seeking final adoption of the Framework to be returned to Council;

2.         Acknowledges that the community engagement toolkit (as per Attachment B to F) is operational in nature and will be reviewed and amended over time by the CEO.

 

EXECUTIVE SUMMARY

As part of determining the CEO’s Key Performance Indicators for the 2020/2021 period, the Council and CEO set Key Performance Indicator (KPI) No4 – ‘Develop a draft Stakeholder Engagement Framework to guide the City when assessing the level of planned and proactive engagement required to be undertaken on a matter beyond that set by legislation’.

 

In response, the City of Busselton Community Engagement Framework (the Framework) (Attachment A) has been developed. The Framework provides high-level guidance to Councillors and Officers on the planning and implementation of engagement initiatives at the City of Busselton. This reports presents a summary of the research and consultation undertaken in relation to the Framework’s development and presents the Framework for Council consideration, with the view to it being adopted subject to a period of further public advertising.

 

BACKGROUND

The City of Busselton has significantly increased its engagement focus over the past five to seven years. The introduction of the Integrated Planning and Reporting Framework required Local Governments to increase their engagement efforts for the purposes of Strategic Community Planning.  In addition sustained population growth and a decade of major community asset building has seen the volume and complexity of community engagement initiatives increase significantly.

 

During this time the City has implemented and successfully embedded new engagement strategies. These include the use of social media platforms to broaden the reach of our communication, the introduction of a digital engagement portal called ‘Yoursay Busselton’ which provides an online engagement hub and a variety of e-engagement tools, and a review of corporate websites to improve information quality and accessibility. The City has also made a concerted effort to take engagement into public places and spaces with pop-up initiatives, display installations and ‘open-house’ events, with these proving popular with the community.

 

While engagement activity has increased significantly and facilitated greater community and stakeholder participation in decision making, it has not been underpinned by a consistent organisational understanding about what engagement is, how it is undertaken and in what instances.

At a public meeting convened by the Bay to Bay Action Group Inc. on 15 September 2020, a ‘motion’ was moved by the group to workshop the Community Engagement Policy in conjunction with community groups and interested individuals.  In considering this ‘motion’ Council resolved in October 2020 (C2010/120) to request that the CEO commence the process of developing a Community Engagement Framework, with input from the community including community workshops and to be  presented to Council for adoption by 30 June 2021.

 

This resolution was supported by the establishment of a CEO KPI to ‘Develop a draft Stakeholder Engagement Framework to guide the City when assessing the level of planned and proactive engagement required to be undertaken on a matter beyond that set by legislation.’

 

Public consultation has been undertaken in the form of three public workshops. The outcomes of the workshops along with previous consultation initiatives have informed the development of the Framework presented herewith.

OFFICER COMMENT

The Framework applies the principles of engagement and the Spectrum of Public Participation advocated by the International Association of Public Participation (IAP2).  The spectrum provides five levels of engagement ranging from low to high level

·        Inform

·        Consult

·        Involve

·        Collaborate

·        Empower

 

The Framework provides overarching guidance as to the level or levels of engagement that will be used, depending on the nature of the project or proposal, the impact on stakeholders and the extent to which stakeholders have opportunity to influence the final decision.   

 

The IAP2 principles and spectrum of engagement is widely referenced across the Australian Local Government sector and is also referenced in the Integrated Planning and Reporting Framework and Guidelines produced by the Department of Local Government, Sport and Cultural Industries (DLGSC).

 


 

While the structure and content of the Framework is similar to that of other Western Australian / Australian Local Governments’, it has been shaped by our community’s views on quality engagement as heard through the workshops conducted (see Stakeholder Consultation section of this report) and as noted below:

·        The principles outlined in the section entitled What Engagement Means Here at the City of Busselton and Why We Engage, reflect the community’s views around meaningful engagement and quality engagement and align to the objectives of the City of Busselton Community Engagement Policy.

·        The section of the Framework entitled Who We Engage With has been informed by community discussion around the diversity of groups and individuals interested in and/or impacted by Council decision making and the importance of hearing a diversity of voices.

·        The section of the Framework entitled When we Engage reflects community acknowledgement that the decision to engage, and to what level, will be contextual and therefore undertaken on a case-by-case basis.

·        The section entitled How We Engage, addresses community expectations for transparent engagement which is backed by thorough planning and delivered using appropriate methodology. This section also highlights the importance of providing feedback to engagement participants.

The Framework is underpinned by a community engagement toolkit which will be expanded and refined over time (refer Attachment B to F).  A key component of the toolkit is the Stakeholder Engagement Plan. This template plan guides the engagement planning and implementation process. It will be used by officers at the City of Busselton, with leadership, advice and support from the Public Relations Team.

The template provides prompts which assist in the planning of engagement initiatives including:

·        The purpose of the engagement initiative.

·        Stakeholder identification and impact / influence assessment.

·        Negotiable and non-negotiable aspects of the engagement initiative.

·        Key messages.

·        Tools and techniques.

·        Timeframes.

·        Activity planning.

·        Engagement risks.

·        Reviewing effectiveness.

·        Reporting outcomes.

 

The Framework, along with the engagement toolkit, will need to be reviewed and adjusted over time as our level of organisational maturity in this space develops and community and stakeholder needs change over time.  It is expected that the engagement toolkit will be reviewed and adjusted at an operational level by the CEO as required, with changes to the substantive Framework content brought back to Council.

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 Framework assists Council to meet strategic priority 4.1 of the Strategic Community Plan 2021 – 2031 – ‘Provide opportunities for the community to engage with Council and contribute to decision making’. 

 

The officer recommendation aligns to the City of Busselton Community Engagement Policy, providing guidance to Councillors and City Officers on how to meet the principles and objectives of the policy. 

Financial Implications

There are no financial implications associated with the officer recommendation. It should be noted however, that for Council to continue to strengthen and develop engagement as a key organisational objective, the Framework and the resources that underpin its successful implementation and maturation will need to be reviewed and increased over time.

Stakeholder Consultation

In November 2019 the City surveyed the community on a range of communication and engagement issues. The survey was well supported with over 280 responses.  Community feedback asked that the City:

·        Listen more and consult earlier – especially on major projects

·        Explain (better) why decisions are made

·        Improve advertising of engagement opportunities

·        Facilitate more face-to-face contact

·        Undertake more surveys

 

Some of the barriers to engagement highlighted through the survey included a lack of knowledge about engagement initiatives, a belief that feedback would not really be considered, time constraints due to family and work commitments and general indifference towards issues raised. Areas of particular stakeholder interest included:

·        Long-term planning

·        Events

·        Major projects

·        Waste and recycling

·        Community facilities

·        Environment

 

In June 2020, as part of review and development of the Strategic Community Plan 2021 - 2031 (SCP), the City undertook its biennial Community Satisfaction Survey. The survey looked, in part, at consultation and the relationship between community members and Council. Feedback obtained continued to highlight a community desire for leadership that is visionary, collaborative and accountable.  Improvement opportunities relating to engagement highlighted in the survey are noted below:

·        Provide better explanations around the reasons for decisions and how residents’ views have been taken into account.

·        Councillors need to develop a better understanding of community needs.

·        Consult more with ratepayers about where money should be spent to ensure better value for rates.


 

Further, in May 2021 the City ran three community engagement workshops to inform the development of the Framework. These sessions were independently facilitated by Joel Levin from Aha Consulting. The session in Dunsborough attracted 41 participants, the two sessions in Busselton attracted 37 people collectively. At these sessions participants explored four key questions:

·        What outcomes would make engagement meaningful for the City and the Community?

·        What are the attributes of ‘quality’ engagement?

·        What needs to be considered to assess the level of impact (a project / decision has) on the community?

·        What needs to be considered to assess the level of influence the community has on a project / decision?

 

Key insights into participants’ aspirations for quality engagement included:

·        A desire for authentic and transparent engagement

·        An understanding that engagement is contextual and not a one-size-fits all model

·        Engagement be undertaken early in the project

·        A diversity of voices be encouraged

·        Builds mutual respect

·        Be based on plan speaking language

·        Be adequately resourced

·        Delivers achievable goals and a broad acceptance of the process followed

 

For engagement to be meaningful workshop participants indicated that it should:

·        Improve the City’s relationship with the community

·        Lead to better decision making

·        Have a clearly defined purpose and be timely

·        Build a sense of place

 

Insights from the May 2021 workshops, which supported earlier consultation themes, have informed the structure and content of the Framework, along with technical guidance from Joel Levin who peer reviewed the draft document.

 

Officers have also undertaken extensive research into the composition, presentation and content of other Local Government Community Engagement Frameworks with particular support and input from the City of Canning, the City of Adelaide and the City of Stirling. 

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 or a medium or greater level have been identified.

Options

As an alternative to the proposed recommendation the Council could:

1.         Adopt the Framework without a period of public advertising;

2.         Require further amendments to the Framework.

CONCLUSION

The City of Busselton Community Engagement Framework has been informed by feedback from the community, internal stakeholders (including Council) and sector-wide research. Its presentation to Council seeks to meet CEO Key Performance Indicator No4 (2020/2021): Develop a draft Stakeholder Engagement Framework to guide the City when assessing the level of planned and proactive engagement required to be undertaken on a matter, beyond that set by legislation.

 

The Framework provides high-level guidance to Councillors and Officers on the planning and implementation of engagement initiatives at the City of Busselton. It is intended that the Framework be a public document outlining how the principles and objectives of the Community Engagement Policy will be implemented. The Framework will be reviewed over time to suit the needs of stakeholders and in recognition of organisational development in the fast-changing stakeholder engagement space.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The following timeline for implementation of the City of Busselton Community Engagement Framework, is recommended:

·        23 June 2021 - Council consideration of Draft Engagement Framework for public advertising

·        28 June 2021 to 16 July 2021 - public submiss