Council Agenda

 

 

 

10 November 2021

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 10 November 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, 10 November 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

 

29 October 2021


CITY OF BUSSELTON

Agenda FOR THE Council MEETING TO BE HELD ON 10 November 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. 6

Previous Council Meetings. 6

8.1          Minutes of the Special Council Meeting held 18 October 2021. 6

8.2          Minutes of the Council Meeting held 27 October 2021. 6

Committee Meetings. 6

8.3          Minutes of the Airport Advisory Committee Meeting held 20 October 2021. 6

8.4          Minutes of the Policy and Legislation Committee Meeting held 27 October 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        Airport Advisory Committee - 20/10/2021 - BUSSELTON MARGARET RIVER AIRPORT OPERATIONS UPDATE. 7

12.2        Airport Advisory Committee - 20/10/2021 - BUSSELTON MARGARET RIVER AIRPORT - REVIEW PROCESS FOR THE NOISE MANAGEMENT PLAN.. 13

12.3        Airport Advisory Committee - 20/10/2021 - BUSSELTON MARGARET RIVER AIRPORT - BUSINESS DEVELOPMENT UPDATE. 83

12.4        Policy and Legislation Committee - 27/10/2021 - ESTABLISHMENT OF BEHAVIOUR COMPLAINTS COMMITTEE. 92

13..... Planning and Development Services Report. 114

13.1        WALGA ENERGY SUSTAINABILITY AND RENEWABLES PROJECT. 114

14..... Engineering and Work Services Report. 124

15..... Community and Commercial Services Report. 125

16..... Finance and Corporate Services Report. 126

16.1        APPOINTMENT OF ELECTED MEMBERS TO EXTERNAL BOARDS. 126

17..... Chief Executive Officers Report. 129

17.1        COUNCILLORS' INFORMATION BULLETIN.. 129

18..... Motions of which Previous Notice has been Given.. 136

19..... urgent business. 136

20..... Confidential Matters. 136

21..... Closure. 136

 


Council                                                                                      6                                                            10 November 2021

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

 

2.               Attendance 

Apologies

 

Approved Leave of Absence

 

Cr Phill Cronin is an approved leave of absence.

 

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 Special Council Meeting held 18 October 2021

RECOMMENDATION

That the Minutes of the Special Council Meeting held on 18 October 2021 be confirmed as a true and correct record.

 

8.2             Minutes of the Council Meeting held 27 October 2021

Recommendation

That the Minutes of the Council Meeting held 27 October 2021 be confirmed as a true and correct record.

 

Committee Meetings

8.3             Minutes of the Airport Advisory Committee Meeting held 20 October 2021

RECOMMENDATION

That the Minutes of the Airport Advisory Committee Meeting held 20 October 2021 be noted.

 

8.4             Minutes of the Policy and Legislation Committee Meeting held 27 October 2021

Recommendation

That the Minutes of the Policy and Legislation Committee Meeting held 27 October 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                                                            10 November 2021

12.             Reports of Committee

12.1           Airport Advisory Committee - 20/10/2021 - BUSSELTON MARGARET RIVER AIRPORT OPERATIONS UPDATE

STRATEGIC THEME

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

STRATEGIC PRIORITY

3.4 Develop aviation opportunities at the Busselton Margaret River Airport.

SUBJECT INDEX

Airport Operations

BUSINESS UNIT

Commercial Services

REPORTING OFFICER

Airport Operations Coordinator - David Russell

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

NATURE OF DECISION

Noting: The item is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Nil

 

This item was considered by the Airport Advisory Committee at its meeting on 20/10/2021, the recommendations from which have been included in this report.

 

COMMITTEE RECOMENDATION

That the Council receives and notes the Airport Operations Report and requests that the Chief Executive Officer investigates the potential for recreational helicopter flights to operate from the Busselton Jetty.

Reasons:     Committee recommended that the Chief Executive Officer investigate the potential for recreational  helicopter flights to operate from the Busselton Jetty.

 

OFFICER RECOMENDATION

That the Council receives and notes the Airport Operations Report.

 

EXECUTIVE SUMMARY

This report provides an overview of the operations and activities of the Busselton Margaret River Airport (BMRA) for the reporting period 1 July 2021 - 30 September 2021. This includes an update on passenger numbers, aircraft landings, and actions relating to COVID-19 and general airport operations.

 

BACKGROUND

The July – September quarter 2021 focused on operational aspects such as apron management, passengers flow through the terminal and car parking as a result of increased FIFO services, preparation for the bi-annual emergency exercise held on 16 October 2021 and the upcoming RAAF / BMRA open day.

 

As a result of the COVID-19 pandemic, and Federal and State Government restrictions, the launch of Jetstar’s Melbourne to Busselton RPT services have been deferred with a revised commencement date of mid-February 2022, dependent on COVID-19 travel and interstate border restrictions being lifted.

Aircraft Movements

The total number of FIFO services using BMRA is currently 20 flights (40 movements) per week, up 5 flights (10 movements) from the last quarter. Currently, there are four airlines operating from the BMRA utilising the F70, F100, A320 and Dash 8 aircraft.

The total number of aircraft landings declined in July (125) compared to July 2020 (161) and increased in August (203) compared to August 2020 (171).  September figures are estimated to be 250 landings compared to 203 for the same period last year.

           

Passenger Numbers

The July – September 2021 quarter has seen an increase of passenger numbers of 11,936 compared to the same period last year of 9,001. This can be attributed to an increase in the overall number of fly-in-fly-out (FIFO) passengers.

 

Carpark

There are currently 1,025 car park patrons using the FIFO swipe card system, with an average of 361 vehicles utilising the public car park per day in September 2021, with the highest number of vehicles parked on one day at 378 vehicles recorded on 22 September out of an available 422 bays. With RPT services commencing in early 2022, these car parking numbers show the need to expand public car parking at the BMRA. Officers have commissioned a car park design and costings to be considered by Council. 

 


 

Operations

The focus for the reporting period has been on:

·        The continued operational readiness for Jetstar’s Melbourne to Busselton RPT service for commencement in the new year.

·        Preparation for the RAAF/BMRA open day to be held on 7 November 2021.

·        Bi-annual emergency field exercise held on 16 October 2021.

·        EOI for hangar leases in the general aviation precinct.

·        Noise Management Plan review.

·        Preparation of capital works for the central apron expansion and relocation of the RFDS/St John patient transfer station.

·        Car park operations due to increased passengers.

 

BMRA – Helicopter operations

In September 2021, City officers were approached by Ballina Corporation P/L trading as KAS Helicopters with a proposal to operate helicopter scenic flights from the Airport.

 

KAS Helicopters, founded in 2007, has grown from one helicopter used primarily for helifishing, to today’s multi-base, multi-aircraft operation with their head office and hangar facilities in Derby and a secondary base established in Broome in 2012. They currently operate a fleet of modern, well-maintained piston and turbine aircraft and are approved contractors for organisations including DFES, Telstra, Mt Gibson Iron, RFDS, Kimberley Land Council and many others. They are now seeking approval to expand their operations to Busselton and the South West to cater for the growing tourism market and for domestic helicopter charters.

 

The KAS Helicopters proposal is to operate a Robinson R44 aircraft that can carry up to 3 passengers and pilot at any one time, with the option to operate a Bell Long Ranger carrying 6 passengers and pilot should demand required.

 

Their proposal is requesting approval for the following:

•          Operations for Monday – Sunday, 8am- 6pm.

•          Access to the grassed General Aviation parking area, located in front of the central apron hangers.

•          Operations to commence from 1 December 2021.

 

The proposal includes each flight estimated to be at no less than 20 minutes, and takes into account fly neighbourly obligations, noise abatement procedures, BMRA Conditions of Use and the Noise Management Plan (NMP). The proponents are confident that they can operate in accordance with the conditions set out within these documents.

 

In principle, officers support the concept of increasing tourism opportunities and activities at the BMRA which not only benefits the Airport with revenue raised from landing fees but also has the potential to increase tourism offerings in the region.

 

Currently, BMRA sees a number helicopter operations from emergency services, businesses and private operators that are not based at BMRA, managed successfully through the NMP, Airport Local Law 2012 and Property Local Law 2010. In November 2018, officers completed an EOI for Helicopter operations at the BMRA with the following recommendation being endorsed by the Airport Advisory Committee (AIR1811/050):

That the Airport Advisory Committee:

1.         Notes the outcome of the ‘Busselton Margaret River Airport - Tourist Helicopter Operations Commercial Opportunity’ Expression of Interest process.

 

2.         Notes the ongoing management of the Busselton Margaret River Airport in accordance with the Noise Management Plan, Airport Local Law 2012 and Property Local Law 2010.

 

Acknowledging the previous resolution, City officers are recommending that the CEO determine the terms and conditions and issue a permit approving the KAS Helicopter operations based from BMRA in accordance with the NMP, Airport Local Law 2012 and Property Local Law 2010, where permit conditions could include:

·        Maximum number of flights per day.

·        Start and finish times of flights.

·        Minimum duration of flights.

·        No scenic flights allowed on certain public holidays.

·        Flight paths to be used agreed with the City of Busselton.

·        Monthly reports to be provided to the City of Busselton on all scenic flights conducted including times of operation and duration of flights.

·        Request minimum flight heights over residential areas.

               

City officers will work with KAS Helicopters to progress this application for a permit to operate from BMRA.

 

Domestic Airports Security Costs Support Program (DASCS)

City officers reported at the last Airport Advisory Committee meeting that the City of Busselton was invited to apply and was accepted for the DASCS grant funding program earlier in the year.

 

The DASCS Program will reimburse grantees for eligible costs associated with passenger and baggage security screening operations required under the Regulations, with a maximum grant amount for the BMRA totalling $100,000.

 

The City of Busselton is now ineligible for this funding as the first RPT service has been delayed until after the extended cut-off date of 31 December 2021.

 

Alternate International Airport

As reported at the last Airport Advisory Committee meeting, Aviation Projects has been engaged to further assess the opportunity of BMRA being designated an alternate international airport with selected international airlines.  While feedback from airlines to date has been positive, the current environment as a result of the COVID-19 pandemic is proving difficult to proceed with detailed discussions on the opportunity. Staffing numbers across all airlines have reduced and personnel are often changing roles meaning previous dialogue undertaken is continuously being undertaken with newly appointed personnel.  In addition to this, it is uncertain when international borders will reopen.  Based on this it is recommended that discussions are placed on hold for 6-12 months until the industry has more certainty on its future and more meaningful discussions can be held.


 

Regular Passenger Transport (RPT) services

Officers have been liaising with an aviation consulting firm engaged by the City of Kalgoorlie-Boulder to assess the opportunity for RPT services between Kalgoorlie and Busselton. The City is supporting the assessment through the provision of information and dissemination of passenger surveys.

OFFICER COMMENT

FIFO passenger numbers through the BMRA have continued to increase significantly in comparison to the same period last year, and officers expect passenger numbers to continue to increase as FIFO employment recruiting from the South West continues. The 40 aircraft movements (20 flights) per week equate to 28 movements for RioTinto (Virgin Australia), 4 for FMG (Qantas Group), 4 for BHP (Alliance Airlines) and 4 for Northern Star Resources (Maroomba Airlines).

 

The additional resource sector companies commencing services from BMRA, together with Busselton –Melbourne RPT services once commenced, will see passenger numbers continue to increase this financial year to potentially 60,000-70,000 passengers.

 

Officers continue to liaise regularly with Jetstar executives and operations teams for the commencement of the Busselton-Melbourne flights now expected in February 2022. BMRA is operationally ready to commence RPT services with the exception of the security screening contractor’s team who need to be redeployed and complete final training.

 

Officers are continuing to liaise with the RAAF regarding the RAAF centenary which occurred on 31 March 2021. Officers are planning to host a BMRA Open Day on 7 November 2021 for the community to come and view the upgraded Airport facilities, and have taken the opportunity to invite the RAAF to celebrate their centenary at the same time. Officers will also invite the Busselton Aero Club to participate in the open day by hosting a general aviation ‘fly in’ and ground display of recreation and general aviation aircraft.

 

Statutory Environment

The BMRA operates in accordance with the following:

·        Aviation Transport Security Act 2004

·        Aviation Transport Security Regulations 2005

·        CASA Manual of Standards 139 (Aerodromes)

·        City of Busselton Transport Security Plan

·        Ministerial Statement 1088

·        City policies and procedures

 

Relevant Plans and Policies

The BMRA operates under the Busselton Margaret River Airport Noise Management Plan 2019.

 

Financial Implications

Airport revenue up to the end of September 2021 was $461,351 compared to the amended year to date budget of $552,808. The reason for revenue being less than expected is due to outstanding Virgin Australia Regional Airline’s (VARA) passenger fees estimated at $90,000 for August and September, with landing fees and car park revenue higher than expected due to additional FIFO flights.

Expenses (excluding screening services, depreciation and airline attraction) to September 2021 is $160,771 compared to the amended budget of $210,642. Lower expenses are attributed to delays in consultancy expenses.

Stakeholder Consultation

Consultation has been occurring on a regular basis with Department of Transport, Government agencies, airport stakeholders, Department of Home Affairs, Aviation Marine Security (AMS), Civil Aviation Safety Authority (CASA), Air Services Australia, Virgin Australia Regional Airline, Qantas Group, the Busselton Aero Club, Albany, Esperance, Geraldton Airports and Australian Airports Association, concerning many topics and issues relating to the Airport.

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.

 

Options

As an alternative to the proposed recommendation, Council may choose not to receive and note the Airport Operations Report.

CONCLUSION

Officers will continue to provide a high level of customer service and ensure the airport is compliant, safe and security is maintained throughout.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

 


Council                                                                                      21                                                          10 November 2021

12.2           Airport Advisory Committee - 20/10/2021 - BUSSELTON MARGARET RIVER AIRPORT - REVIEW PROCESS FOR THE NOISE MANAGEMENT PLAN

STRATEGIC THEME

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

STRATEGIC PRIORITY

3.4 Develop aviation opportunities at the Busselton Margaret River Airport.

SUBJECT INDEX

Airport Operations

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

Simple Majority

ATTACHMENTS

Attachment a   BMRA Noise Management Plan 2019

Attachment b    Ministerial Statement 1088

 

This item was considered by the Airport Advisory Committee at its meeting on 20/10/2021, the recommendations from which have been included in this report.

 

COMMITTEE RECOMMENDATION

That the Council notes:

1.         The process to review the Busselton Margaret River Airport Noise Management Plan as required by Ministerial Statement 1088 as outlined in this report incorporating assessment of the following:

(a)       Noise monitoring results;

(b)       Noise amelioration assessments and/or implementation;

(c)       Number of complaints received and actions taken to resolve complaints;

(d)       Published flight paths to minimize impacts; and

(e)       The findings of the review to determine the effectiveness of the Busselton Margaret River Airport Noise Management Plan, and whether amendments to the Plan are required.

2.         Where amendments to the Noise Management Plan are required, a draft Noise Management Plan will be brought back to Council prior to undertaking public consultation and seeking public comment.

 


 

OFFICER RECOMMENDATION

That the Council notes:

1.         The process to review the Busselton Margaret River Airport Noise Management Plan as required by Ministerial Statement 1088 as outlined in this report incorporating assessment of the following:

(a)       Noise monitoring results;

(b)       Noise amelioration assessments and/or implementation;

(c)       Number of complaints received and actions taken to resolve complaints;

(d)       Published flight paths to minimize impacts; and

(e)       The findings of the review to determine the effectiveness of the Busselton Margaret River Airport Noise Management Plan, and whether amendments to the Plan are required.

2.         Where amendments to the Noise Management Plan are required, a draft Noise Management Plan will be brought back to Council prior to undertaking public consultation and seeking public comment.

 

EXECUTIVE SUMMARY

This report provides an overview of the review process for the Busselton Margaret River Airport Noise Management Plan, of which the results are to be submitted to the CEO of the Office for the Environmental Protection Authority by 7 April 2022.

 

BACKGROUND

The concept of a Noise Management Plan (NMP) for the Busselton Margaret River Airport (BMRA) was first initiated in 2009 when environmental consulting firm Strategen was engaged to prepare a draft NMP. This was in response to the first fly in-fly out (FIFO) services commencing at the then Busselton Regional Airport and the need to address the restrictive hours of operations and conditions specified in Ministerial Statement 399 as approved by the Minister for the Environment (October 1995). The key elements of Statement 399 that the then Shire of Busselton was looking to revise and seek approval from the Office of the Environmental Protection Authority (OEPA) and Minister for the Environment were:

 

4.1       The proponent shall ensure that noise emissions from the aerodrome, including emissions from aircraft using the aerodrome, are effectively managed.

 

4.2       To achieve the objectives of condition 4.1, at all times during the operation of the aerodrome, the proponent shall ensure that noise emissions from the aerodrome activities, including emissions from aircraft using the aerodrome, do not cause noise levels at any residential premises in occupation to exceed an average of 55 dB(A)Ldn or a maximum of 65 dB LA slow, unless a specific variation to the maximum noise level is agreed to by the Minister for the Environment on advice of the Department of Environment and Conservation and following consultation with relevant agencies.

 

4.3       Where a variation has been granted by the Minister for the Environment, as referred to in condition 4.2, the variation may only apply for operation between 0700 hours and 2200 hours, and the proponent shall ensure that the maximum noise level does not exceed 80 dB La slow and that the number of flights is limited.

 

A variation, described in condition 4.3, had been granted by the Minister for the Environment to allow two (2) flights per day between the hours of 0700 and 2200 with aircraft noise to be limited to 80 dB(A) to enable the first Skywest Airlines Fokker100 FIFO operations to commence.

The draft NMP was further developed by the Airport Advisory Group (AAG) and in July 2010 was presented to the Council for consideration. Furthermore, at this time the AAG was transitioned to an official committee of the Council, the Airport Advisory Committee (AAC), with four nominated Councillors. In October 2010, the newly formed AAC requested City staff to review and update the draft NMP (developed by the AAG) and present a final draft to the Council for endorsement prior to being submitted to the OEPA for consideration. A final draft version of the NMP was presented to the Council for endorsement on 15 December 2010, followed by submission to the OEPA on 1 February 2011.

 

A lengthy consultation period occurred with the OEPA, including a public consultation period, prior to a final NMP being submitted to the OEPA Board for consideration and referral to the Minister of the Environment; Water for approval. The City of Busselton’s Noise Management Plan (June 2012) was approved as part of Ministerial Statement 901 on 22 June 2012.

 

In accordance with Condition 4 of Statement 901, the City of Busselton had the opportunity to review and submit proposed amendments or updates to the NMP. Following Council endorsement at its meeting on 28 August 2013, City Officers submitted a proposed amended NMP to the OEPA for assessment in September 2013. The OEPA assessment resulted in the proposed amendments being resubmitted by the City of Busselton in March 2014 and following further discussions with the OEPA, the City of Busselton submitted a final revised version of the NMP in December 2014, which came into effect in July 2015.

 

In June 2015, the State Government committed to funding the upgrade of the BRA which required environmental approvals from the Minister of the Environment; Heritage. The environmental approvals required the City to undertake a full review of the NMP (2015) resulting in in the draft NMP (2016) that was then advertised for public comment in March 2016. Following Council consideration of the public submissions received and endorsement of the draft NMP (2016), the City applied to OEPA to amend the proposal description as described in Ministerial Statement 901 and submit the revised draft NMP (2016) that would allow for proposed interstate and international jet air services resulting from the State Government funded Airport Development Project. Following extensive consultation with the OEPA, the City was notified in November 2016 that the level of environmental assessment for the BMRA Development Project (the Airport Expansion Proposal) was to be a Public Environmental Review (PER).

 

The determination for a PER referral process for the operational components of the Development Project provided a further opportunity for the City to review the draft NMP (2016) and incorporate comments and feedback received from the community and airport stakeholders resulting in the draft NMP (2017). The 2017 version included changes to the Standard Hours of Operations, Flight Training Guidelines and Noise Amelioration Criteria which was then advertised for public comment, in addition to extensive noise modelling, flight path analysis and community consultation. Following Council endorsement of the draft NMP (2017) the City submitted a draft Environmental Review Document (ERD) including the draft NMP (2017) and public submissions to the OEPA for review and comment as part of the PER process. Following considerable engagement with the OEPA, the amended NMP was approved on 27 December 2018 (version 1 May 2018) in accordance with Ministerial Statement 1088 by the Minister for Environment; Disability Services.  Subsequent to this a number of minor, non-material amendments were made to the NMP in early 2019, resulting in the current version of the NMP (version 2 January 2019).

 


 

The current version of the NMP (Attachment 1) has been in place for just under three years and has enabled the City to manage the BMRA operations effectively. In accordance with Statement 1088, the Airport team are required to monitor and report to the OEPA any operational non-compliances, which may include aircraft movements outside of the approved operating hours, any unauthorised flight training, and aircraft noise breaches.  As part of this process, the City is required to submit annual compliance reports outlining the effectiveness of the NMP to the OEPA. 

 

In August 2021, the Department of Water and Environmental Regulation undertook a desktop compliance audit of the Airport Expansion Proposal to verify the City of Busselton’s compliance with the implementation conditions of Ministerial Statement 1088. The Compliance Audit Report detailed the compliance status of each implementation condition and determined that the City of Busselton demonstrated an acceptable level of compliance with the implementation conditions of Statement 1088. Two implementation conditions relating to the review of the NMP were not reported on as they are not required to be completed until April 2022, one being the review of the NMP.

 

Statement 1088 not only includes the conditions for managing noise emissions from the BMRA but also the requirements for the review of the NMP. Condition 6 Review of NMP, included in Statement 1088 outlines the following:

 

6-1      Within three months of each three year period, from the date of issue of this Statement, the proponent shall submit a report to the CEO which reviews the effectiveness of the Busselton Margaret River Airport Noise Management Plan 2018 (version 1, May 2018) or any subsequent approved versions, in achieving the objective of condition 5-1.

 

6-2      The report required by condition 6-1 shall include, but not be limited to:

1)        Noise monitoring results;

2)        Noise amelioration assessments and/or implementation;

3)        Number of complaints received and actions taken to resolve complaints;

4)        Published flight paths to minimize impacts; and

5)        The findings of the review to determine the effectiveness of the Busselton Margaret River Airport Noise Management Plan 2018 (version1, May 2018) or any subsequent approved revisions, and whether amendments to the Plan are required.

 

Further, ‘Chapter 9.2 Review Process’ of the NMP details the process which is to be undertaken every three years in conjunction with the AAC (or its equivalent replacement at any future time).  The NMP states that the review will be undertaken in consultation with key stakeholders, including the community, industry, government agencies, and airport users.

 

The results of the review and any proposed changes to the NMP are then be advertised for public comment in the local newspapers following Council's consideration of the recommended changes.  It is noted that proposed amendments to the NMP may require approval under the Environmental Protection Act 1986 or other relevant Acts depending on the extent of the proposed changes.

 

This report outlines the proposed process to undertake the review.

 


 

OFFICER COMMENT

It is proposed the review process of the NMP will take into consideration:

 

·        How the development opportunities for the airport have been pursued;

·        Whether the flight paths and noise abatement zones need updating;

·        Whether the standard hours of operation need to be adjusted;

·        How well noise emissions associated with the airport have been managed, which will include consideration of noise monitoring data, complaints statistics and compliance information; and

·        The review will also include a review of the Fly Neighbourly Agreement and the Flight Training Guidelines.

 

Under Statement 1088, the requirement to report to the CEO of the OEPA on the review of the NMP is to be submitted prior to 7 April 2022. Taking into consideration the criteria outlined in Statement 1088 and the NMP, officers propose the following activities be conducted as part of the review and form the basis for a report to be submitted to the OEPA:

 

1)    Noise monitoring

The City’s Environmental Health department recently completed noise monitoring in August- September 2021 at two locations in the vicinity of the BMRA; one directly to the north and one south of the runway. The noise loggers were positioned to capture aircraft arrivals and departures for both Fokker100 (F100) and A320 aircraft. At the time of the monitoring there were 16 scheduled closed charter flights per week using jet aircraft, of which only two flights per week were using A320 aircraft.  Currently 20 closed charter services are in operation.  As the F100 aircraft has been the most commonly used aircraft for closed charter operations over the past 10 years the City has a good sample of F100 aircraft noise data, however the A320 aircraft has been a relatively recent addition to operations and hence there is limited noise data. The recent noise monitoring only captured three A320 flights in total, hence further noise monitoring will need to be completed for the review Officers are working with the City’s Environmental Health Department and an external consultant to conduct additional noise monitoring ensuring that a good representative sample of A320 aircraft noise data is captured. This will be easier to achieve from late October there will be four A320 scheduled flights operating per week.

 

2)    Noise amelioration assessments and/or implementation

Review any noise assessments and / or amelioration works that the City has undertaken in the past three years. 

 


 

3)    Non-compliances and Complaints

In accordance with the NMP and Statement 1088 the City is required to report any non-compliances within seven days of identifying the non-compliance and the resulting action taken by the City. The City also reports all non-compliances and complaints in an annual compliance report. To date the City has reported the following:

 

Year

# Non-compliances reported

Summary resulting actions

OEPA further action

# complaints

17/18

4

All operators contacted and informed of non-compliance

No

8

18/19

3

All operators contacted and informed of non-compliance

No

8

19/20

2

All operators contacted and informed of non-compliance

No

 

 

3

20/21

4

All operators contacted and informed of non-compliance

No

7

 

4)    Flight Paths and noise abatement zones

New flight paths were designed and implemented for the commencement of RPT services and use of the larger A320 aircraft. As RPT flights are yet to commence, the use of the new flight paths is not mandatory and is at the discretion of pilots. A review with closed charter airlines (VARA) who have been voluntarily utilising the flight paths will be undertaken with a view to determining whether the flight paths need refining. A review of the BMRA noise contours could also be undertaken at this time.

 

It is also proposed that a review of the residential areas surrounding the BMRA will be undertaken to inform whether the noise abatement zones need updating, particularly as there has been growth and release of residential land for development such as Via Vasse and Provence since the implementation of Statement 1088.


 

5)    Hours of Operations

The standard hours of operations (below) will be reviewed in conjunction with points 1-3 above to determine whether there is justification to extend the hours of operations for either all aircraft categories or specific categories.

 

 

6)    The Noise Management Plan document

The NMP document is a lengthy and wordy document that was prepared at a time when history and context for the plan was necessary. The NMP has now been in place since 2012 and officers are of the view that a condensed version, incorporating the key criteria for managing noise emissions at the BMRA could be implemented. The key criteria that would continue to be included could be:

 

·        Hours of operation

·        Flight training

·        Fly neighbourly agreement

·        Noise complaints process

·        Noise amelioration criteria and process

·        NMP review


 

7)    Consultation

The NMP has been updated a number of times since its initial implementation. Each iteration of the NMP has involved significant public and community engagement and input. The NMP review process also requires consultation with the Airport Advisory Committee, the Council and the community should be included in any review.

 

Further discussion is detailed in the stakeholder consultation section of this report, however officers propose that the results from the review, the revised draft NMP and public consultation activities are presented to the AAC for review and input, prior to being considered for public consultation by Council. A public consultation process could include, but not be limited to, inviting submissions through the City’s YourSay Website, advertising in the local media, meeting(s) of the Airport Stakeholder Reference Group, community access sessions for specific residential areas, as well as general community access sessions.

 

Statutory Environment

The BMRA Noise Management Plan (version 2 January 2019) was approved by the then Minister for the Environment; Disability Services after review and consideration by the Environmental Protection Authority. Compliance reporting and review of the NMP is defined under Ministerial Statement 1088; Busselton Margaret River Airport Expansion (Attachment 2).

 

Relevant Plans and Policies

The officer recommendation aligns to the following adopted plan or policy:

·        Ministerial Statement 1088

·        Busselton Margaret River Airport Noise Management Plan (version2 January 2019)

·        Busselton Margaret River Airport Compliance Assessment Plan (Version 2) (CAP) (23 September 2019)

 

Financial Implications

The financial implications associated with completing a review of the NMP include engaging an external consultant to complete the analysis of noise monitoring data. A quote to complete this work has indicated an approximate cost of $12,000 to $15,000, which can be funded from the Airport Operations consultancy budget. Other expenses include staff time, advertising in the local media and preparation of materials and printing for public consultation, all of which can be funded from the Airport Operations budget. It is not known whether the BMRA noise contours will need to be updated and as such there is no budget allocation in the 2021/22 adopted budget for this. However, should this be required a budget amendment report will need to be considered by Council.

 


 

Stakeholder Consultation

The following public consultation activities are proposed as part of the NMP review process.

 

Who

Forum

Description

BMRA airline users

Individual meetings

·    Discuss use of flight paths

·    Hours of operations

·    Flight training

·    Noise abatement zones

·    Fly neighbourly agreement

·    Draft revised NMP

BMRA general aviation users

Individual meetings

·    Hours of operations

·    Flight training

·    Noise abatement zones

·    Fly neighbourly agreement

·    Draft revised NMP

Community comment – Draft revised NMP

Local Media; YourSay; City and BMRA website

 

·    Results of review

·    Draft revised NMP

·    Flight paths

·    Noise contours

Residents in vicinity of the Airport and/or near flight paths including:

·    Reinscourt

·    Yalyalup

·    Kalgup

·    Yoogarillup

 

By invitations for community access meeting

·    Results from review

·    Draft revised NMP

·    Flight paths

·    Noise contours

 

 

Community information sessions (All information sessions open to all community members)

Community information session

·    Results from review

·    Draft revised NMP

·    Flight paths

·    Noise contours

·    Information on how to comment/make a submission

Community (Circulation approx. 14,000 residents)

Bay to Bay newsletter

·    General Information

·    Link to website/ Your Say

 

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 request alternate activities be undertaken as part of the NMP review process.


 

CONCLUSION

The current version of the NMP has been in place for just under three years and has enabled the City to manage the BMRA operations effectively. In accordance with Statement 1088, the City is required to monitor and report to the OEPA any operational non-compliances which may include aircraft movements outside of the approved operating hours, any unauthorised flight training and aircraft noise breaches and submit annual compliance reports outlining the effectiveness of the NMP.  The City has completed its mandatory compliance reporting over the past three years and in accordance with Statement 1088 is required to undertake a full review of the NMP and report its effectiveness to the CEO of the OEPA. Both Statement 1088 and NMP outline the criteria for consideration in completing this review. This report outlines the criteria for consideration and process to be completed, including stakeholder and community consultation and recommends Council notes the review process prior to submitting a report to the OEPA.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Officers have commenced reviewing the NMP (2019) and will commence consultation with airlines and aviation users of the BMRA throughout November and December. Additionally officers have commenced planning for further noise monitoring to be conducted which is expected to also take place during November and December. A report will be presented to the AAC in December 2021 outlining the review process, monitoring results, and a revised draft NMP for consideration. Once endorsed by Council the draft NMP will be used to undertake public consultation and seek public comment.  The City is required to report to the CEO of OEPA on the findings of the review of the NMP by 7 April 2022.

 


Council

64

10 November 2021

12.2

Attachment a

BMRA Noise Management Plan 2019

 





















































Council

82

10 November 2021

12.2

Attachment b

Ministerial Statement 1088

 









Council                                                                                      91                                                          10 November 2021

12.3           Airport Advisory Committee - 20/10/2021 - BUSSELTON MARGARET RIVER AIRPORT - BUSINESS DEVELOPMENT UPDATE

STRATEGIC THEME

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

STRATEGIC PRIORITY

3.4 Develop aviation opportunities at the Busselton Margaret River Airport.

SUBJECT INDEX

Airport Operations

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

Noting: The item is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Nil

 

This item was considered by the Airport Advisory Committee at its meeting on 20/10/2021, the recommendations from which have been included in this report.

 

COMMITTEE RECOMMENDATION

That the Council notes the business development update report and endorses:

1.         The marketing and advertising of the Industrial and Commercial Request For Proposal to a maximum of $12,000, to be funded from the 2021/22 Airport Operations budget.

2.         The submission of an application to the Regional Economic Development Grant Scheme Round Four for $135,000 to be matched by the City for the construction of a general aviation hangar for the purposes of entering into a commercial lease with an aviation maintenance and servicing operator. 

           

OFFICER RECOMMENDATION

That the Council notes the business development update report and endorses:

1.         The marketing and advertising of the Industrial and Commercial Request For Proposal to a maximum of $12,000, to be funded from the 2021/22 Airport Operations budget.

2.         The submission of an application to the Regional Economic Development Grant Scheme Round Four for $135,000 to be matched by the City for the construction of a general aviation hangar for the purposes of entering into a commercial lease with an aviation maintenance and servicing operator. 

 

EXECUTIVE SUMMARY

This report provides an update on the business development activities for the Busselton Margaret River Airport (BMRA) and outlines the proposed activities over the coming months to capitalise on the potential aviation and economic opportunities and benefits the BMRA can provide to the region.

 

BACKGROUND

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

 

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

 

In December 2020, officers presented a report to Council outlining the key business development activities for the BMRA which included the below activities, with the priority focus on BMRA interstate route development (Sydney services) and progression of the industrial and commercial precinct to attract investment:

Product/Service

Description

Actions

Timeline

Revised Timeline

BMRA Route Development

·    Interstate RPT domestic services (Melbourne, Sydney, Brisbane)

·    Intrastate FIFO closed charter operations 

·    Intrastate RPT domestic services (Port Hedland, Karratha, Broome, Newman)

·    International RPT services (Singapore)

·    Develop business case for Sydney and Singapore services with State Government (TWA)

·    Continue to promote the BMRA as a FIFO regional base to mining /resource sector (Rio Tinto, BHP, FMG, CME)

·    Negotiations with airlines

·    Federal Govt approvals (Home Affairs, Border Force) 

2021

2021/2022

Alternate landing Site

·    Alternate airport for international airlines to Perth Airport in the event of inclement weather and/or closure

·    Business analysis to provide the service including airline pricing structure, aircraft infrastructure and aviation firefighting and rescue services  

·    Quantify the requirements and costings for the City to provide a full alternate landing site facility

·    Prepare an appropriate  pricing structure for charging international airlines for using BMRA

Dec 2020 – January 2021

Re-engage April 2022

General Aviation

 

34 lots Code B

·      Various sizes, with capacity to combine land lots

·      Fully serviced lots for lease with Code B apron access.

·      GA focus

·      Option 1  -  advertise and market lease opportunities

·      Option 2  -  prepare business case for Council to lease developed hangar lots (City construct hangars)

·      Option 3 -  enter into a partnership with developer/investor to build and lease hangar lots 

2021 (Q2)

EOI – Completed August 2021

RFQ to Construct 2x GA Hangars – Nov 2021

Lease execution  ~ May 2022

General Aviation

1 x Code C lot

·      Fully serviced

·      Size: 3840m2 each

·      Suit aircraft maintenance / servicing / freight / smaller RPT operations

·      Advertise commercial lease opportunity, including domestic freight, private charter operations or RPT operations (GA aircraft < 30,000kgs)

2021 (Q2)

2022 (Q2)

Commercial & Industrial precinct

4 land lots

 

·      Fully serviced land lots for lease

·      Size: 4864m2 each

·      Direct runway access

·      Dedicated airfreight focus for lease by commercial aviation and support businesses

·      Option 1 -  City advertise and market commercial lease opportunities intrastate and nationally

·      Option 2 – City enter into commercial arrangement on long term lease basis with private developer/investor

·      Option 3 -  Approach Airport North Developer and negotiate commercial arrangement for external management of precinct

·      Option 4 -  Offer land lots for sale, either individually or as a precinct

2021 (Q1 – Q2)

 

Advertise/market RFP: Phase 1 & 2a, November 2021 – January 2022

Commercial & Industrial precinct

 

·      Remaining 15ha undeveloped land – RFP Commercial & Industrial Opportunities

 

·     

Advertising

·      Electronic screens in the terminal / arrivals hall

·      Static posters located in the terminal

·      Fences and benches within carparks

·      Billboard (Neville Hyder Drive)

 

·      Electronic screen is available  - advertising to be completed

·      Static poster boards to be installed early 2021 – advertising to be completed

·      Following commencement RPT services, landside advertising opportunities (car parks, benches etc.) to be completed

2020/21 (Q1)

Ongoing

Landside commercial opportunities

·      Airport Café/kiosk

·      Retail / tourism products

·      Car valeting and storage

·      Fuel station

·      Hotel / short stay accommodation 

·      BMRA café /kiosk license in negotiations now

·      Retail  / tourism product once RPT operations commence (small scale), dependent on new terminal

·      Car valeting and storage once RPT operations have commenced

·      Long term opportunities - Fuel stations and hotel sites

 

2021

 

2022

 

+ 2025

Licence in place

2022 (Q1)

 

2022 (Q2-Q3)

 

+ 2025

 

As detailed in this report, the aviation industry has been significantly affected by the COVID-19 pandemic, making the above activities difficult to achieve in the originally specified timeframe.  As such, timeframes have been revised as outlined in the above table.

This report outlines the progress on the above activities and proposed next steps.

 

OFFICER COMMENT

Officers have been working with airlines and mining companies over the past twelve months to facilitate the changes in operations due to COVID-19 requirements and to increase fly in fly closed charter services. As a result there are 40 closed charter aircraft movements (20 flights) per week operating from the BMRA, made up of 28 operated by Virgin Australia for Rio Tinto, four by Qantas Group for FMG, four by Alliance Airlines for BHP and four by Maroomba Airlines for Northern Star Resources.

Direct Jetstar RPT services between Melbourne and Busselton have been further delayed to mid-February 2022 due to the continued COVID-19 imposed border restrictions. Despite the delay, the BMRA had a total of 3,267 aircraft landings in 2020/21, an increase of 690 landings for the same period in 2019/20 and record number of passengers with 40,469 passengers in 2020/21 compared to 26,496 passengers for 2019/2020.

 


 

BMRA Interstate Domestic Route Development

In early 2021 the City engaged an aviation consultant to complete airline route analysis and prepare business cases for Sydney and Brisbane services to present to airlines. The analysis showed that both Sydney and Brisbane routes were commercially sustainable with Sydney services indicating positive yields from 2021. Officers in conjunction with Tourism WA approached airlines and discussed informally a new Sydney – Busselton route. Given the impacts on the aviation industry resulting from the COVID-19 pandemic, it was agreed by all parties to delay negotiations until domestic travel has been restored and the Busselton-Melbourne services have commenced. Officers will continue to liaise with airlines and stakeholders on potential new domestic routes over the next twelve months.

 

Alternate Landing Site (ALS)

On 1 March 2019, the City received confirmation that BMRA was designated as an alternate international airport by the Department of Infrastructure, Regional Development and Cities. Prior to COVID-19 and restrictions to international travel, the City had received enquiries from numerous international airlines interested in nominating BMRA as an international alternate airport. In discussions with international airlines, officers identified a potential commercial opportunity to share in the financial savings made by international airlines if they were to nominate BMRA as an alternate to Perth Airport. In the event of Perth Airport being unavailable to airlines, aircraft could divert, park and refuel at BMRA and continue onto their destination once available.

 

Aviation Projects has been engaged to further assess the opportunity of BMRA being designated an alternate international airport with selected international airlines.  While feedback from airlines to date has been positive, the current environment as a result of the COVID-19 pandemic is proving difficult to proceed with detailed discussions on the opportunity. Staffing numbers across all airlines have reduced and personnel are often changing roles meaning previous dialogue undertaken is continuously being undertaken with newly appointed personnel.  In addition to this, it is uncertain when international borders will reopen.  Based on this it is recommended that discussions are placed on hold for 6-12 months until the industry has more certainty on its future and more meaningful discussions can be held.

Industrial and Commercial Precinct       

In the past two years, the City has been approached by a number of private investment / fund managers in regards to joint venture (JV) or partnership opportunities for the BMRA. To date, discussions have been high level and relate to the type of investment partnerships that the City can legally enter into. However, this has highlighted potential opportunities to progress the development of the industrial and commercial precinct with a key goal to create investment and economic activity for the BMRA, and more broadly the region. 

 

The BMRA Master Plan (2016-2036) identifies approximately 20 hectares of available land for aviation related industrial and commercial development. However, industrial/commercial land development is a specialised area that the City does not have deep knowledge or experience in. To ensure the City is able to maximise the commercial opportunities for the BMRA, officers engaged a consultant experienced in urban planning, design, property and retail economics to prepare a Request for Proposal (RFP) document to market and advertise BMRA industrial and commercial opportunities. The RFP document has now been completed and officers have prepared a communications plan to detail the marketing and advertising activities to market the commercial opportunities.


 

The table below provides a summary of the activities proposed:

 

 

Action

Medium

Timeline

Costs

Phase 1

City to use existing contacts to advertise/market the RFP 

SWDC; RDA;

Industry & Aviation stakeholders;

VendorPanel; Print media

4 weeks

Minimum $ for print media advertising; Staff time

Phase 2a

City to advertise through industry specific media  – no agents

e.g. Urban Developer

The Industrialist

4 weeks

Website from $2000/month -  $4000/month

EDM from $3000/month - $4500/month

Editorial from $1500 - $4000

 

Phase 2b

Advertise through agents

Commercial, Property, real estate websites 

4 weeks

TBC – dependent on membership / agent costs

Phase3

COB engage an agent to complete, either:

-      Market sourcing exercise

-      Market advertising

Colliers; CBRE; Savills; KnightFrank

Based on scope

$20-$30k market sourcing exercise

$50k+ Public Advertising campaign

Phase 4

Conduct market demand analysis report with recommendations

Consultant

Based on scope

$50k+

 

In the absence of completing a market demand analysis to determine the current market supply and demand for aviation related commercial land, officers propose that phase 1 and 2a be undertaken to gage the level of market interest. The costs associated with phases 1 and 2a are not expected to exceed $12,000. This approach minimises the costs while exploring any potential development and lease opportunities. Depending on the level of interest received from the RFP, further phases could be considered.   

 

General Aviation (GA) Precinct – Code B

On 12 May 2021 Council endorsed (C2105/092), subject to an expression of interest (EoI), the construction of up to three general aviation hangars at the BMRA and the allocation of $210,000 for the construction of the hangars, to be funded from the Airport Infrastructure Renewal Reserve.

 

Officers advertised the EoI for constructed hangar leases in the new GA precinct in August 2021 for three weeks. Only one submission was received and officers have met with the proponent to confirm their level of interest in entering into a lease. Officers have since liaised with a local shed builder and been advised that the costs of the hangars are likely to have increased by approximately 30% since seeking quotes in April this year, and that also delivery times for materials can be up to six months. As a result, officers will issue a Request for Quotation (RFQ) for the supply and construction of two general aviation hangars this calendar year. Officers are proposing the construction of two hangars, with one to be leased following a submission from the EOI and the second available as a short term hire arrangement or for any new lease enquiries.

 

The EoI advertising has however generated a number of enquiries for the leasing of larger hangars and/ or ground leases which officers are progressing. One concern that has been raised with potential lessees building their own hangars is the lease term of up to 20 years, with lessees requesting terms of up to 30 and 40 years. Despite the City owning the airport land in freehold, the City is not able to enter into leases for longer than 20 years without approval from the WA Planning Commission. As such, officers have met with the Department of Planning to investigate the processes and approvals to achieve this. 

 

The City has also been liaising with a helicopter operator wanting to establish a helicopter maintenance and servicing business and once established, helicopter tourism flights. The operator, who would like to proceed this financial year, would consider building their own hangar however requires the lease term to be a minimum of 30 years to ensure a return on investment. Securing such an operator would be considered a great opportunity for the BMRA as this would attract aviation activity, provide job opportunities and economic benefits for the City of Busselton. To facilitate this, officers are proposing that the City submit an application to Regional Economic Development (REDs) Grants scheme round four for up to $135,000 with the City of Busselton contributing a matching contribution of $135,000 to build a hangar of approximately 500sqm. Once built, the hangar would be leased out at a commercial rate. If the City was to be successful with a REDs grant application to build the hangar, officers propose the remaining unspent budgeted funds for the construction GA hangars, estimated to be approximately $50,000, be allocated towards the City’s matching contribution of $135,000 with the remaining $85,000 being funded from the Airport Infrastructure Reserve.  This however will be subject to a separate Council report should the City be successful in obtaining REDs funding and if the City is not successful then the Council will need to consider, along with the benefits and cost implications, if the City should fund the total cost of constructing a hangar.

 

General Aviation Precinct – Code C

As part of the Airport Development Project, two 50mx50m serviced hangar lease areas with Code 4C apron access were developed. Since this time, the City has utilised one of the hangar lots for the construction of the new Arrivals Hall. The remaining lease area has potential to host commercial operators for RPT aircraft freight operations, private charter or smaller RPT operations (aircraft less than 30,000kgs MTOW), and aircraft servicing or maintenance services. However in the current environment it is difficult to secure investment, especially with no RPT services operating. Officers therefore propose to hold off on formally advertising this commercial opportunity nationally until RPT services are operating and, in the meantime, will undertake more passive, low cost marketing activities.

 

Landside Commercial Opportunities

Terminal Advertising

The terminal expansion works completed in March 2020 in preparation for the Jetstar Melbourne -Busselton flights included the installation of an electronic advertising screen and static light boxes in the new Arrivals Hall. Currently the Arrivals Hall is utilised for arriving FIFO passengers.  An EoI was advertised for advertising opportunities with five businesses taking up advertising space on the electronic screen and one business operator advertising on each of the static light boxes. Advertising is booked on a three monthly basis with bookings secured for the next quarter.  Interest and take up is expected to increase once RPT services have commenced.

 

Terminal Concessions and Retail

A licence was issued for the BMRA café/kiosk located in the Terminal building in late 2020 and has been operating for the FIFO closed charter flights on Tuesday, Wednesday and Thursday mornings. Once RPT services commence, the operator will increase their opening hours to cater for the Jetstar flights as well as FIFO.

 


 

Transport Providers

Officers have been liaising with transport providers such as car hire companies, coach, shuttle and mini-bus operators and private chauffeur and limousine operators since March 2020 and will re-engage in early 2022 for the commencement of RPT services.  

 

Statutory Environment

The BMRA operates in accordance with the following:

·        Aviation Transport Security Act 2004

·        Aviation Transport Security Regulations 2005

·        CASA Manual of Standards 139

·        Council’s Transport Security Plan

·        City policies and procedures

 

Relevant Plans and Policies

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

 

Financial Implications

The adopted 2021/22 Airport Operations Budget has an allocation of $50,000 for consultancy based activities. To date, there has been no consultancy expenditure. While there are activities that will draw on the consultancy budget throughout the year, there will be sufficient funds to cover the costs associated with phases 1 and 2a to market and advertise the commercial and industrial RFP opportunities to a maximum value of $12,000.

 

The adopted 2021/22 budget has an allocation of $210,000 towards the construction of GA hangars.  The proposal to construct two hangars as a result of a successful EoI process will be funded from this budget allocation. 

 

The proposal to build a hangar for an aviation maintenance and servicing operator is dependent on the City applying and being successful in a REDs grant. If successful the City would be required to match the grant funding contribution of $135,000 which could be part funded from unspent funds allocated towards the construction of GA hangars and funding from the Airport Infrastructure Reserve. If the City is successful in a REDs grant this would require Council consideration through a budget amendment report.

There are no other direct financial implications associated with the officer recommendations in this report.   

 

Stakeholder Consultation

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

 

Risk Assessment

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

 


 

Options

As an alternative to the proposed recommendation the Council could:

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

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

 

CONCLUSION

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

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

If supported, officers will commence marketing and advertising of the commercial and industrial RFP immediately to maximise the commercial opportunities as the aviation industry begins to reopen and both domestic and international operations commence. The request for quotations for the general aviation hangars will be issued before the end of October and if supported, a REDs application will be submitted by 21 October 2021.


Council                                                                                      96                                                          10 November 2021

12.4           Policy and Legislation Committee - 27/10/2021 - ESTABLISHMENT OF BEHAVIOUR COMPLAINTS COMMITTEE

STRATEGIC THEME

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

STRATEGIC PRIORITY

4.2 Deliver governance systems that facilitate open, ethical and transparent decision making.

SUBJECT INDEX

Code of Conduct

BUSINESS UNIT

Governance Services

REPORTING OFFICER

Governance Coordinator - Emma Heys

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

Absolute Majority

ATTACHMENTS

Attachment a   Proposed Delegation DA 11 - 03 Behaviour Complaints Committee

Attachment b    Proposed Terms of Reference - Behaviour Complaints Committee

Attachment c    Amended Council policy: Management of Complaints of Alleged Breaches of Behaviour

Attachment d   Current Council policy: Management of Complaints of Alleged Breaches of Behaviour

Attachment e    Council Policy: Management of Complaints of Alleged Breaches of Behaviour with Committee amendments  

 

This item was considered by the Policy and Legislation Committee at its meeting on 27/10/2021, the recommendations from which have been included in this report.

 

COMMITTEE RECOMMENDATION

That the Council:

1.         Establish a committee of Council to determine complaints called the Behaviour Complaints Committee.

2.         Delegates power and authority to the Behaviour Complaints Committee to make findings and dismiss complaints in relation to clause 12(1), (4) and (7) and clause 13 of the Local Government (Model Code of Conduct) Regulations 2021, as per Attachment A.

3.         Adopt the Terms of Reference for the Behaviour Complaints Committee as per Attachment B.

4.         Appoints membership to the Behaviour Complaints Committee:

i.          5 Members

ii.         4 Deputy Members

 

5.         Adopts the Council policy: Management of Complaints of Alleged Breaches of Behaviour inclusive of the Committee amendments (Attachment E), being the inclusion of an additional clause to provide the CEO the discretion to refer the Complaints Officer report, in extraordinary circumstances, to a Council Meeting for Council to make a finding in relation to a complaint of alleged breach of behaviour; and amendments to clauses of the Policy that refer to a meeting of the Committee to now include 'and Council'.

 

Reasons:    The Committee recommended the amendments to the Policy to provide the CEO with the discretion to refer a report of a complaint to a Council meeting for a finding to be made; and amendments to relevant clauses to refer to both meetings of the Behaviour Complaints Committee and Council.

 

OFFICER RECOMMENDATION

That the Council:

1.         Establish a committee of Council to determine Complaints called the Behaviour Complaints Committee.

2.         Delegates power and authority to the Behaviour Complaints Committee to make findings and dismiss complaints in relation to Clause 12(1), (4) and (7) and Clause 13 of the Local Government (Model Code of Conduct) Regulations 2021, as per Attachment A.

3.         Adopt the Terms of Reference for the Behaviour Complaints Committee as per Attachment B.

4.         Appoints membership to the Behaviour Complaints Committee:

i.          5 Members

ii.         4 Deputy Members

5.         Adopts the amended Council policy: Management of Complaints of Alleged Breaches of Behaviour (Attachment C) (the Policy) to replace the current policy (Attachment D).

 

EXECUTIVE SUMMARY

This report seeks Council endorsement of the establishment of a Behaviour Complaints Committee (the Committee), under section 5.8 of the Local Government Act 1995, with the Committee to be delegated the power and authority to make findings or dismiss complaints in relation to alleged breaches of Part 3 of the City of Busselton Code of Conduct for Council Members, Committee Members and Candidates.  Presented for Council adoption is the Committee Terms of Reference; under which the Council is asked to appoint membership to the Committee.

 

Council is also requested to adopt the amended Council policy: Management of Complaints of Alleged Breaches of Behaviour, to reflect the proposed changes to the complaints management process.

 

BACKGROUND

The Local Government (Model Code of Conduct) Regulations 2021 (the Regulations) came into effect on 3 February 2021. The Regulations replaced the Local Government (Rules of Conduct) Regulations 2007 (repealed) and prescribed a Model Code of Conduct for local government council members, committee members and candidates (Model Code).

 

At its 28 April 2021 meeting, Council, in accordance with s.5.104 of the Act, adopted the City’s Code of Conduct for Council Members, Committee Members and Candidates (the Code), and the form for making Complaints. Council also appointed the CEO as the Complaints Officer. The CEO has delegated this power to the Director Finance and Corporate Services.

 


 

At its meeting of 9 June 2021 Council adopted Council policy: Management of Complaints of Alleged Breaches of Behaviour. Whilst the policy was informed by several other local government council policies, the Western Australian Local Government Association (WALGA) template Complaints Management Process was released post formulation of our policy. The City’s complaints management process as adopted differs from the WALGA process in that, at the time, the City chose to have complaints managed by a third party investigation and findings by Council.

 

OFFICER COMMENT

Officers have had some time since commencement of the new requirements to reflect and further discuss with other local governments the best way to manage complaints when they arise, particularly in relation to interests that may arise. On reflection, officers believe it is prudent to revisit the City’s position in regards to complaints management.

 

The complaints management process in the current policy requires a complaint to be dealt with by the whole of Council. Putting aside the common law principles of apprehended bias, there is no provision in the Act that excuses a Councillor from the deliberative voting process in a Council meeting, outside of a financial or proximity interest.  There would be no financial implication arising from a finding in relation to a complaint and therefore a Councillor who is the subject of a complaint would arguably be required to remain in the Council meeting during the determination of the complaint, after having declared an impartiality interest Similarly so would a maker of the complaint. This may cause a perception of bias and may negate the principles of natural justice.

 

In order to manage this issue, WALGA’s template policy and their approach is predicated on a committee being delegated the power from Council to deal with each complaint.

 

Officers are proposing that the City adopt this approach also and that the Council establish a committee of Council, the Behaviour Complaints Committee, to make findings and/or dismiss complaints received under Part 3 of the Code. 

 

Officers have developed Terms of Reference (ToR) for the Committee which outline the proposed membership and delegated powers and conditions. The ToR are presented to Council for endorsement (Attachment B). Notably, the membership of the Committee, as outlined in the ToR, require the appointment of 5 Members and 4 Deputy Members, thereby allowing members who are the subject or maker of a complaint, to recuse themselves and for the meeting to continue with the attendance of a Deputy Member/s.

 

The proposed delegated powers to the Committee as detailed in the ToR and proposed Delegation DA 11 – 03 (Attachment A) (the Delegation) are:

               

a.         the authority to make a finding as to whether an alleged breach the subject of a complaint has or has not occurred, based upon evidence from which it may be concluded that it is more likely that the breach occurred than it did not occur and determine reasons for any finding.

 

b.         where a finding is made that a breach has occurred, the power to:

i.          vary the proposed action plan; or

ii.         consider the adoption of the action plan.

 

c.         dismiss a complaint and determine the reasons for the dismissal.

 


 

The proposed delegated powers to the Committee will be subject to the following conditions:

 

a.         the Committee will make decisions in accordance with Council Policy: Management of Complaints of Alleged Breaches of Behaviour and these Terms of Reference.

 

b.         that part of a Committee meeting which deals with a Complaint will be held behind closed doors in accordance with s.5.23(2)(b) of the Act.

 

c.         the Committee is prohibited from exercising its delegated power where a Committee Member in attendance at a Committee meeting is either the complainant or respondent to the complaint under consideration by the Committee.

 

Statutory Environment

Section 5.103 of the Local Government Act 1995 (the Act) [Model code of conduct for council members, committee members and candidates] provides that regulations must prescribe a Model Code of conduct for council members, committee members and candidates and must include:

(a)       general principles to guide behaviour; and

(b)       requirements relating to behaviour; and

(c)       provisions specified to be rules of conduct;

and may include provisions about how to deal with alleged breaches of the behaviour requirements.

 

Section 5.104 of the Act provides that a local government must prepare and adopt by absolute majority a code of conduct to be observed by council members, committee members and candidates, and which incorporates the Model Code.

 

The Local Government (Model Code of Conduct) Regulations 2021 prescribe the Model Code of Conduct for Council Members, Committee Members and Candidates.

 

Relevant Plans and Policies

The officer recommendation aligns to the City’s Code of Conduct for Council Members, Committee Members and Candidates.

 

Financial Implications

There are no specific financial implications associated with the appointment of members to Committees/groups, as the costs associated with attendance at these Committees/groups have been allocated in the current budget.

 

Stakeholder Consultation

Officers consulted with the Western Australian Local Government Association (WALGA) and the documents and processes developed by the City of Rockingham have all formed part of the research undertaken by officers in preparing this report and the associated documents.

Risk Assessment

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

Options

As an alternative to the proposed recommendation, the Council could choose not to establish a Behaviour Complaints Committee under section 5.8 of the Act. However, officers do not recommend this course of action, as leaving the complaints management process in its current form may result in the perception of bias with Council as a whole responsible for determining complaints of alleged breaches of behaviour.

CONCLUSION

Council are asked to endorse the establishment of a committee of Council, Behaviour Complaints Committee, in accordance with section 5.8 of the Act, to make findings and/or dismiss complaints of alleged breaches of Part 3 of the Code; adopt the Terms of Reference and Delegation of Authority as per attachments A and B; appoint membership to the Committee; and adopt the amended Council policy: Management of Complaints of Alleged Breaches of Behaviour.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The Behaviours Complaints Committee, membership of the committee and amended policy will be in effect immediately upon adoption of Council.


Council

98

10 November 2021

12.4

Attachment a

Proposed Delegation DA 11 - 03 Behaviour Complaints Committee

 



Council

100

10 November 2021

12.4

Attachment b

Proposed Terms of Reference - Behaviour Complaints Committee

 



Council

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10 November 2021

12.4

Attachment c

Amended Council policy: Management of Complaints of Alleged Breaches of Behaviour

 






Council

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10 November 2021

12.4

Attachment d

Current Council policy: Management of Complaints of Alleged Breaches of Behaviour

 





Council

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10 November 2021

12.4

Attachment e

Council Policy: Management of Complaints of Alleged Breaches of Behaviour with Committee amendments

 





 


Council                                                                                      123                                                       10 November 2021

13.             Planning and Development Services Report

13.1           WALGA ENERGY SUSTAINABILITY AND RENEWABLES PROJECT

STRATEGIC THEME

ENVIRONMENT - An environment that is valued, conserved and able to be enjoyed by current and future generations.

STRATEGIC PRIORITY

1.6 Promote and facilitate environmentally responsible practices.

SUBJECT INDEX

Energy Management

BUSINESS UNIT

Environmental Services

REPORTING OFFICER

Senior Sustainability/Environment Officer - Mathilde Breton

Contracts and Tendering Officer - Lucinda McLeod

Manager Legal and Property Services - Ben Whitehill

AUTHORISING OFFICER

Director, Planning and Development Services - Paul Needham

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   Published Under Separate Cover  Confidential Energy Framework Offer Document - City of Busselton  

 

OFFICER RECOMMENDATION

That the Council:

1.         Endorses the City’s participation in the Western Australian Local Government Association (WALGA) Energy Sustainability and Renewables Energy project;

2.         Accept WALGA’s offer and authorise the CEO to enter into an Electricity Supply Agreement with Electricity Generation and Retail Corporation trading as Synergy for the period commencing 1 April 2022 and ending 31 March 2025 on the basis of accepting an unbundled price structure and 100% NaturalPower.

 

EXECUTIVE SUMMARY

The City has the opportunity to purchase electricity for its contestable sites as part of an aggregated electricity procurement process undertaken by the Western Australian Local Government Association (WALGA) on behalf of WA local governments.

 

This report recommends that the City joins the WALGA Energy Sustainability and Renewables project and selects the unbundled rate with 100% renewable energy provided by Electricity Generation and Retail Corporation trading as Synergy. The recommendation is likely to assist the City in reducing its energy costs and meeting its renewable energy and emission reduction targets.

 

BACKGROUND

Electricity supplied to metered sites with an annual load greater than 50,000 kWh can be taken to the market as “contestable supply” under the Electricity (Licencing) Regulations 1991. Currently, the City has 16 contestable sites with a combined annual electricity cost of $489,782 in 2020/21. The City currently purchases its contestable electricity under a WALGA preferred supplier arrangement, with the current two year contract with Perth Energy set to expire in April 2022. 

 

The City of Busselton Energy Strategy, endorsed by Council (C1912/254), has committed to reducing the City’s per capita greenhouse gas emissions by 50% and to generate 100% of the City’s electricity needs from renewable sources by 2030. It should be noted that electricity consumption is only one contributor to the City’s greenhouse gas emissions, with other significant contributions arising from landfill gas emissions, use of the City’s plant and fleet, and gas consumption.

 

Recognising the challenges faced by most local governments of increasing energy costs and community desires to reducing their carbon footprint, WALGA developed the Energy Sustainability and Renewables project.

 

Through this project, WALGA intends to procure and implement a State-wide energy procurement structure for the local government sector, which aims to assist in achieving renewable energy policy targets and reduce the cost of renewable electricity, standard electricity, gas, and carbon offsets.

 

WALGA’s Energy Sustainability and Renewables project has the following objectives:

1.         Enhance access to and development of renewable energy for WA Local Governments thereby driving positive climate change outcomes;

2.         Diversify supply options and application of new technology; and

3.         Leverage the best price outcomes for Local Government supply.

 

In general terms the phasing of this project is as follows:

Phase 1:   Contestable energy supply and renewable energy options

Phase 2:   Load shifting, minimising cost (i.e. energy management systems, contestability assessments, understanding emissions, non-contestable supply investigation (including streetlights), preparation for carbon offset integration and preparation for a PPA

Phase 3:   Long Term PPA

Phase 4:   Carbon management, integrated technologies

Phase 5:   Sustainable Fleet Transition and Sustainable Infrastructure Technologies

Phase 6:   Offsetting

Phase 7:   Large-scale Local Government Sustainability projects

 

The first phase of the project focuses on the aggregation of contestable energy and supply of renewable energy options. This is the focus of this report.

 

The City submitted an expression of interest to participate in the project in December 2020 and provided its contestable electricity loads to WALGA in January 2021 to feed into an indicative pricing process. A total of 51 Local Governments expressed interest in participating in the project.

 

In August 2021, WALGA undertook a formal Request for Tender (RFT) for the procurement of contestable energy with renewable options. Through that process, Synergy has been selected as the preferred supplier subject to contracting, satisfaction of minor variations and the minimum thresholds of local government participation reached. Terms of the offer are included as Attachment A (confidential) and discussed under Officer Comment, below.

 

The offer has a strict validity period for acceptance (18 November 2021) and is contingent on a collective minimum scaled volume of 60 gigawatt hours across a three-year term for electricity. WALGA estimates that, if fully adopted, the project will deliver collective savings of $5 million a year and the single largest reduction in carbon footprint for the local government sector.

 


 

OFFICER COMMENT

The City will spend approximately $500,000 and generate 1,653 tonnes of carbon emissions per annum for the supply of electricity to its contestable sites in 2020/21. Additional electricity is consumed by non-contestable sites (approximately $330,000 in 2020/21) provided by Synergy and $893,000 on street-lighting owned by Western Power, which are deemed non-contestable and include combined supply and maintenance costs (i.e. only a portion of the street-lighting cost is attributable to energy consumption). The WALGA Energy Sustainability and Renewables project provides the opportunity to reduce energy costs while assisting the City in reducing its carbon emissions.

 

Identified benefits of an aggregated electricity purchase arrangement include:

1.         Cost savings on the City’s current supply rates;

2.         A reduction in price for renewable energy;

3.         Contractual protection from future price increases;

4.         The ability to remove take or pay risks as the consumption obligation is absorbed by the aggregate load (this is a provision in our existing contract to apply penalties if a minimum electricity consumption is not met. This can be an issue when large energy efficiency or rooftop solar projects are implemented); and

5.         Cost savings (staff salary and consultant costs) compared to running our own contestable electricity procurement process.

 

In a nutshell, the City has the following choices to make:

1.         Whether to participate or not in the WALGA Energy Sustainability and Renewables project;

2.         What type of rate to subscribe to (bundled or unbundled); and

3.         Whether to purchase NaturalPower.

Further information on each of these considerations is provided below.

 

1. Participation in the WALGA Energy Sustainability and Renewables Project

The City can decide to participate or not participate in the WALGA Energy Sustainability and Renewables project.

 

The pricing provided by Synergy as part of the WALGA project provides a reduction in energy costs for the City based on existing rates and 2020/21 energy use. However, there is no guarantee that better pricing could not be obtained if the City was to run a procurement process for contestable electricity supply at the end of its existing electricity contract in April 2022.

 

To mitigate the risks, WALGA provided benchmarking rates from Synergy or Alinta outside of this project and the City obtained pricing from Perth Energy.


 

A summary of the WALGA pricing and benchmark pricing is provided in the table below.

 

Product

Year 1

Year 2

Year 3

Current pricing (Perth Energy)

$489,782

 

 

WALGA Synergy Bundled

$490,308

$490,308

$490,308

WALGA Synergy Unbundled (Low Point)

$457,777

$463,439

$461,663

WALGA Synergy Unbundled (High Point)

$568,773

$574,435

$572,659

WALGA 100% NaturalPower (Additional Cost)

$71,920

$62,330

$53,460

Synergy (Benchmark Pricing)

$495,297

 

 

Alinta (Benchmark Pricing)

$502,282

 

 

Perth Energy (Benchmark Pricing)

$521,767

 

 

 

Note, all estimates are to the nearest dollar and based on 2020/21 electricity use at the City’s contestable sites with total annual consumption of 2,397,321 kWh, may be subject to State mandated changes. Current and benchmark pricing is not available for years 2 and 3.

 

It is also important to note that failure to join Phase 1 of the WALGA project may exclude the City from participating and benefiting from subsequent phases. For example, a future stage may allow the City to convert existing non-contestable sites to contestable and hence benefit from more competitive pricing.

 

Notwithstanding the above, the City may wish to continue purchasing contestable electricity through WALGA Electricity Supply Preferred Supplier Arrangement, which remains valid until June 2022. There will be additional operational costs in managing a Request for Quotation process. The City may also be required to undertake a tender process for purchasing electricity post 2024, as it is unlikely WALGA will continue maintaining the current Electricity Preferred Supplier Panel.

 

It is noted that projecting electricity costs beyond a relatively short period can be difficult, for example new facilities can be built, usage patterns may vary or contestable sites can be added. Weather can also be a significant factor. Having said this, officers consider it unlikely that the City will achieve substantially cheaper rates outside of the WALGA offer.

 

The offer has a strict validity period for acceptance and is contingent on a collective minimum scaled volume across the sector of 60 Gigawatt hours across a three-year term for electricity. The renewable component is also contingent on a minimum volume being achieved in each contract year. Due to market pricing processes and vesting arrangements, no extensions can be sought, and if WALGA is not able to accept this offer due to a lack of collective participation levels then it will lapse. The renewable component is also contingent on a minimum volume being achieved on each contract year.

 


 

Officers are recommending participation in the WALGA Energy Sustainability and Renewables project because it offers:

 

1.         cheaper prices for renewable energy;

2.         contractual protection from future price increases; and

3.         savings (staff salary and consultant costs) compared to running our own contestable electricity procurement process.

 

2. Electricity Rates (bundled or unbundled)

If the City decides to participate in the WALGA Energy Sustainability and Renewables project, the following two electricity rate structures are available:

Option 1: Bundled rates (specific to City of Busselton)

The City’s current electricity contract provides for bundled rates. It is the simplest and safest option, by providing greatest certainty with regards to electricity costs. A fixed rate is provided inclusive of energy costs and other non-commodity prices. The rate is only amended for other minor government mandated cost increases. The table below estimates additional costs compared to existing rates that may be achieved on the bundled rate provided as part of the WALGA project for the duration of the three-year contract (based on 2020/21 electricity use).

 

The difference is negligible with estimated costs at approximately an additional $500 per annum compared to current contract prices.  More detailed analysis, included Synergy rates are included in the Offer Document listed as confidential attachment.  

 

Option 2: Unbundled rates

Unbundled pricing separates the price into energy, network, capacity, and other charges. Using unbundled pricing, energy suppliers can pass through regulated cost components over which they have no control. In this manner, they can offer customers a more competitive rate based on the cost components that they have control over, which are energy costs. Non-commodity costs typically represent 60%-70% of invoice charges.

 

Unbundled rates usually allow consumers that actively manage their energy use to reduce an additional component of their energy bills and realise cost saving. The primary principle is by managing electricity use at key facilities during the peak trading intervals to benefit from lower energy costs.

 

The Peak Trading Intervals are determined by the Australian Energy Market Operator (AEMO) which identifies the 12 trading intervals (half hourly periods) for the preceding capacity year based on the four days that had the highest demand for electricity in the South West Interconnected System (SWIS) between 1 December and 31 March. Peak Trading Intervals are usually on a week day and in the late afternoon when rooftop solar production starts to decline. Synergy provides advanced notice to its unbundled customers as to when Peak Trading Intervals are likely to be enacted, giving them the opportunity to modify their operations and reduce energy use.

 

WALGA has provided a benchmarking range for non-commodity costs to allow Local Governments to estimate total electricity costs. The range spans between 13.692c/kWh at the lower end to 18.322c/kWh at the highest end. The more the City actively manage its electricity use at its key facilities such as the Geographe Leisure Centre and the City’s Administration Building, the more it will reduce its electricity costs. Even small changes can lead to significant savings.


 

On average, it is estimated a 10% reduction in electricity consumption during Peak Trading Intervals will result in a 3% reduction on total energy costs. Some of the measures that could be implemented may include temporarily increasing the temperature of the HVAC at the GLC or Administration Building or powering down some of the non-essential mechanical services like pumps (note that the GLC represents approximately 50% of total energy use at the City’s contestable sites, and would be expected to represent over 50% during most Peak Trading Intervals). WALGA has indicated that it will provide support to its members to identify where and how Local Governments can reduce their median peak load. Having milder summer weather than Perth will also assist the City in reducing its capacity charges.

 

The first stage of the WALGA project is a three-year contract for the supply of energy, combined with the option to purchase renewable energy. One of the objectives of this first stage is to get all Local Governments more familiar with operating on an unbundled rate and the associated additional requirements to manage its electricity use with a view to developing a 10-year Power Purchase Agreement which is likely to deliver greater cost savings and more tangible renewable energy outcomes for participants. By selecting the unbundled rate, the City would build its capacity for the future energy market.

 

WALGA recommends selecting an unbundled rate to achieve greater financial savings and building whole-of-sector capacity for a future 10-year PPA.

 

The table below estimates financial savings that may be achieved on the unbundled rate provided as part of the WALGA project for the duration of the three-year contract (based on 2020/21 electricity use). Estimates have been provided using a low and high benchmarking for non-commodity costs. The advice provided by WALGA is that the City is likely to be at the lower end of the range.

 

 

Year 1

Year 2

Year 3

Unbundled rate savings (low point projections)

$32,005

$26,343

$28,119

Unbundled rate savings (high point projections)

-$78,991

-$84,653

-$82,877

 

Officers are recommending that Council adopt the unbundled rate for the following reasons:

1.         it offers the greatest potential savings if energy use is managed; and

2.         future stages of the WALGA Energy Sustainability and Renewables project (the 10-year Power Purchase Agreement) will require an unbundled price so the City will need to become familiar with this method of electricity pricing.

 

3. Renewable energy

As part of this project, the City also has the option to purchase ‘NaturalPower’ from Synergy, which is a form of green power that specifically sources Large Generation Certificates (LGCs) from WA renewable energy sources connected to the South West Interconnected System – namely the Albany, Collgar and Emu Downs wind farms. The City has the option to purchase renewable energy in increments of 25% up to 100% in year 1, 2 or 3.

 

Based on 2020/21 energy use, purchasing 100% renewable energy is projected to result in the following additional costs:

 

 

Year 1

Year 2

Year 3

Renewable energy cost

$79,920

$62,330

$53,460

 


 

By purchasing 100% renewable energy for its contestable sites, the City (and other participants to this project) will contribute to sending a message to the market to speed up the transition to renewable energy by increasing the demand for locally produced LGCs. While the City’s energy targets have a 2030 year, it will take a number of years for the market to invest in renewable infrastructure. The total costs of ‘NaturalPower’ represents an increase of approximately 12-16% in year 1 falling to 9-12% in year 3. 

 

The purchase of ‘NaturalPower’ at an additional cost of approximately $62,571 (averaged over 3 years), will result in the carbon emissions attributable to the City’s energy use decreasing by 1653 tonnes at an average cost of $38 per tonne. This is higher than $20/tonne of carbon offset but it is preferable to support the production of renewable energy locally rather than fund the planting of trees to capture the emissions produced by burning fossil fuels. It will also mean the City would source approximately 46% of its electricity requirements from renewable energy (with an additional 35% coming from streetlighting and 19% from non-contestable sites).

 

With the potential solar farm project at Lot 27 Rendezvous Road having recently being put on hold, this provides a cost effective and achievable mechanism to work towards the City’s 100% renewable energy target. The key reason that project has been put on hold is because of the current grid network arrangements, and the success of the City’s rollout of rooftop solar, which has reduced the City’s consumption of energy from the grid at the times when the solar farm would be generating energy. A number of opportunities to add further rooftop solar capacity have with high rates of financial return have, however, been identified, and it is envisaged those opportunities will be pursued in the next few years.

 

The renewable energy market is experiencing a steady increase in competition due to an increasing number of companies and organisations setting net-zero emissions. This is likely to result in an increase in prices in the near future as demand for LGCs outstrip supply. By selecting ‘NaturalPower’ now, the City can secure reduced prices as per Synergy’s offer.

 

Officers are recommending that Council adopt the 100% NaturalPower option for contestable sites which is consistent with the objectives of the Council endorsed Energy Strategy (2019) and Climate Change Policy (2020).

 

Statutory Environment

The West Australian Wholesale Energy Market (WEM) is established under the Electricity Industry Act 2004. Electricity supplied to metered sites with an annual load greater than 50,000 kWh can be taken to the market as “contestable supply” under the Electricity (Licencing) Regulations 1991.

 

Large Scale Certificates (LGCs) for the production of accredited renewable energy are generated and traded as per the Renewable Energy (Electricity) Act 2000.

 

The Local Government (Functions and General) Regulations 1996 (LG Regulations) requires a local government to publicly invite tenders where the consideration for the supply of the relevant goods or services is likely to exceed $250,000, unless an exemption under LG Regulation 11(2) applies. In terms of LG Regulation 11(2)(b) tenders do not have to be publicly invited if the supply of the goods or services are to be obtained through the WALGA Preferred Supplier Program.

The consideration for the supply of electricity to the City’s contestable sites over the proposed three year term of the contract will exceed $250,000. However as the procurement has been undertaken in accordance with the WALGA Preferred Supplier Program an exemption under LG Regulation 11(2)(b) applies.


 

The Australian Competition and Consumer Commission (ACCC) has granted an authorisation (ACCC Determination AA1000562 granted 26 August 2021) to WALGA to enable local governments who are current and future members of a proposed joint renewable energy purchasing group to pool their demand and collectively tender for and negotiate an electricity supply arrangement.

 

Relevant Plans and Policies

The officer recommendation aligns to the following adopted plans and policies:

City of Busselton Energy Strategy (2019)

The City’s Energy Strategy, endorsed by Council in December 2019, outlines the City’s approach and commitments to reducing energy use and increasing the uptake of renewable energies.

 

The Energy Strategy contains the targets of generating 100% of the City of Busselton electricity needs from renewable sources by 2030 and reducing corporate carbon emissions per capita to 50% on 2017/18 levels by 2030.

 

Selecting to purchase 100% NaturalPower for contestable sites as part of this project would assist the City in achieving its Energy Strategy targets. Contestable electricity represents 46% of the City’s total electricity supply.

 

Climate Change Policy (2020)

Electricity-related greenhouse gas emissions are a key component of the City’s total greenhouse gas emissions. By electing to purchase 100% NaturalPower for its contestable sites, the City will be contributing to the driving of additional investment in the local production of renewable energy.

 

Financial Implications

The City spent $489,782 last financial year for purchasing electricity at its 16 contestable sites. By entering into the WALGA energy offer (unbundled rates), it is estimated the City will achieve a saving of up to $32,005 in the first year of the contract if at the lower end of non-commodity costs or spend up to an additional $78,991 if at the higher end of non-commodity costs. Customers that are located remotely and use electricity intermittently are more likely to pay higher non-commodity costs. WALGA advised that the City is likely to be at the lower end of the non-commodity price range.

 

The City is required to pay a premium to access renewable energy for its contestable sites. Based on 2020/21 electricity use, it is estimated the City will have to pay an additional $71,920 in year 1, dropping to $62,330 in year 2 and $53,460 in year 3. Savings that may be achieved by going unbundled could offset some of the additional cost of NaturalPower.

 

It is important to note that potential savings and additional costs outlined in this report have been estimated using energy used by the City at its 16 contestable sites during 2020/21. Should the City increase its energy use through additional visitation at its facilities, extensions and/or construction of additional facilities, the cost predictions will vary accordingly. Total costs will also vary based on energy charges as set by the market and if going unbundled, how much the City is able to manage its energy use. The weather can also have significant impact on energy consumption and therefore cost.

 

The increased cost of electricity can be accommodated within the existing 2021/22 budget (noting that there are inherent uncertainties associated with energy costs, and that only approximately two months of 21/22 energy consumption would be under the proposed arrangements) and future costs and/or savings will be taken into consideration during drafting of the budget for the financial years 2022/23, 2023/24 and 2024/25.

 

Stakeholder Consultation

The Sustainability and Energy Working Group provided in principle support for the City to participate in the project at its meeting on 28 June 2021. They did not get the opportunity to review the outcomes of the RFQ process prior to this report being drafted due to the short timeline for implementation. 

 

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

 

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place. The following risks have been identified:

Participating in the WALGA Energy Sustainability and Renewable Project

Risk Category

Risk Consequence

Likelihood of Consequence

Risk Level

Financial

Minor

Unlikely

Low

 

There is low financial risk as per the City’s Risk Management Framework that purchasing contestable electricity through the WALGA project will result in higher costs than if the City had continued to purchase electricity through the existing WALGA Preferred Supplier Arrangement or through a separate tender process. An aggregated procurement process is likely to attract lower energy prices, especially for a trading commodity like electricity. To further mitigate the risks, three benchmarking offers have been sought, two by WALGA and one independently by the City from our current contestable electricity supplier. All three offers provide higher electricity prices than the WALGA project (except the high point projections of the unbundled rate).

 

Selecting the unbundled price structure.

Risk Category

Risk Consequence

Likelihood of Consequence

Risk Level

Financial

Minor

Unlikely

Low

Reputation

Minor

Unlikely

Low

 

There is a low financial risk that the City may pay more for electricity than it is currently paying if energy use at large facilities such as the Geographe Leisure Centre are not managed during the Peak Trading Intervals. Procedures will be developed and put in place for facilities managers to implement.

 

There is also a minor reputational risk if some of the operational changes associated with reducing energy use during the Peak Trading Intervals negatively impact some facility users. Where possible, only equipment with minor impacts will be switched off or turned down. Reasons for the disruptions will be communicated to the broad community.

 


 

Options

As an alternative to the proposed recommendation, the Council could:

1.         The City may decline to participate in the WALGA Energy Sustainability and Renewables Project and continue purchasing contestable electricity through WALGA Preferred Supplier Arrangement. The City may also be required to undertake a tender process for purchasing electricity post 2024 as it is unlikely WALGA will continue maintaining the current Electricity Preferred Supplier Panel. Electricity rates may be higher and the City may miss out on further opportunities provided by future stages of the WALGA project.

2.         The City may decide to purchase electricity under the WALGA project but as bundled rates. The City may still benefit from lower energy prices but not as low as through the unbundled rate structure.

3.         The City may decide to purchase a lower percentage of renewable energy, or not at all. Alternative ways of reaching the Energy Strategy targets will need to be investigated and some of these may be more costly. This may also be seen by the community as not in line with the City’s commitments outlined in the Energy Strategy (2019).

CONCLUSION

In summary, by participating in the WALGA Energy Sustainability and Renewables project, the City chooses to take a more proactive role in energy procurement, which will result in greater efficiencies and financial sustainability. The energy market is changing rapidly and it is important for the City to adapt and take on new opportunities. The officer recommendation of an unbundled rate structure and 100% renewable energy for the City’s contestable sites will assist the City in building capacity and showing leadership in energy management.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The City is required to notify WALGA of its decision whether to participate in the project by 18 November 2021. There is a very short timeframe for LGAs to opt in or out of the project due to the short validity of energy prices. Subject to the minimum volumes of electricity Supply and Renewables Adoption having been met, the City will be required to sign and accept the Energy Supply Agreement with Synergy by 30 November 2021. Contracts under the new Energy Portfolio will commence on 1 April 2022.  


Council                                                                                      125                                                       10 November 2021

14.             Engineering and Work Services Report

Nil


 

15.             Community and Commercial Services Report

Nil


Council                                                                                      127                                                       10 November 2021

16.             Finance and Corporate Services Report

16.1           APPOINTMENT OF ELECTED MEMBERS TO EXTERNAL BOARDS

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

Committees

BUSINESS UNIT

Governance Services

REPORTING OFFICER

Governance Coordinator - Emma Heys

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   Invitation from BJI Management Board  

 

OFFICER RECOMMENDATION

That the Council appoints a member as a delegate to the following external organisations:

1.         Busselton Senior Citizen Centre Board of Management:

Member:

2.         Busselton Jetty Inc Board of Management:

Member:

 

EXECUTIVE SUMMARY

This report is presented to enable Council to appoint elected members’ as delegates to external groups where City representation is required, namely the Busselton Senior Citizens Centre Board of Management and the Busselton Jetty Inc. Board of Management.

 

BACKGROUND

At the Special Council Meeting of Council, 18 October 2021, Councillors were appointed to the City’s formal Council Committees, various working groups, and as delegates to external groups where City representation is required. Appointments to the Busselton Senior Citizens Centre Board of Management or Busselton Jetty Inc. Board of Management were not made at this time as the City was awaiting confirmation as to the appointments and for the Busselton Jetty Inc. Annual General meeting to be held.

 

OFFICER COMMENT

The Council has over the years formed many working groups to assist with progressing various initiatives and is additionally represented on a number of local community committees and working groups. 

 

In accordance with the Busselton Senior Citizen Centre’s constitution, a Councillor is appointed to represent the City on their Board of Management. Discussions have previously been held with the Senior Citizen’s Centre around the necessity and the potential conflicts of having a Councillor sit as a voting member of the Board.  They have however indicated their desire to see the arrangement continue, as per their Constitution.  Any potential conflicts of interest will need to be managed by the appointed member.     

 

Following the Busselton Jetty Inc. Annual General Meeting, the Busselton Jetty Inc Board of Management has invited a Councillor to an ex-officio (non-voting rights) position on the Board (Attachment A).

 

Statutory Environment

These appointments support the general function of a local government under the Local Government Act 1995, to provide for the good government of persons in its district. 

 

Relevant Plans and Policies

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

 

Financial Implications

There are no specific financial implications associated with the appointment of members to Committees/groups as the costs associated with attendance at these Committees/groups have been recognised in the current budget.

 

Stakeholder Consultation

Other than the communications with the Senior Citizen’s Centre and the Busselton Jetty Inc. outlined in the Officer Comment, 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

As an alternative to the proposed recommendation the Council could determine not to appoint any members to the external boards, and have further discussions with the associations.

 

CONCLUSION

Council are asked to appoint members as delegates to the boards of two external organisations, namely the Busselton Senior Citizen Centre and the Busselton Jetty Inc.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The organisations will be informed of Council’s decision within a week of the Council meeting.


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16.1

Attachment a

Invitation from BJI Management Board

 


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17.             Chief Executive Officers Report

17.1           COUNCILLORS' INFORMATION BULLETIN

STRATEGIC THEME

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

STRATEGIC PRIORITY

4.2 Deliver governance systems that facilitate open, ethical and transparent decision making.

SUBJECT INDEX

Councillors' Information Bulletin

BUSINESS UNIT

Executive Services

REPORTING OFFICER

Reporting Officers - Various

AUTHORISING OFFICER

Chief Executive Officer - Mike Archer

NATURE OF DECISION

Noting: The item is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Current State Administrative Tribunal Reviews

Attachment b    Letter from Alannah MacTiernan MLC - Busselton Performing Arts and Convention Centre

Attachment c    Thank You Letter - Building Busselton Town Team  

 

OFFICER RECOMMENDATION

 

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

17.1.1       State Administrative Tribunal Reviews 

17.1.2       Correspondence from Department of Premier and Cabinet – South West Native Title Settlement

17.1.3        Letter from Alannah MacTiernan MLC – Busselton Performing Arts and Convention Centre

17.1.4       Thank You Letter - Building Busselton Town Team

 

EXECUTIVE SUMMARY

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

 

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

 

INFORMATION BULLETIN

17.1.1       State Administrative Tribunal Reviews 

A summary of the current State Administrative Tribunal Reviews at Attachment A.


 

17.1.2       Correspondence from Department of Premier and Cabinet – South West Native Title Settlement

The following correspondence was received from the Department of Premier and Cabinet:

 

Forming the Noongar Corporations

The South West Aboriginal Land and Sea Council (SWALSC) has been busy holding successful ‘pre-incorporation’ meetings with the Noongar people, to establish their Noongar Regional Corporations and the supporting Central Services Corporation (the Noongar Corporations).

 

The meetings, held on Noongar country, ran from Saturday the 24th of July to Saturday the 18th of September with the Noongar people voting to support all resolutions, including:

·        establishing their Regional Corporations;

·        electing their ‘Initial Directors’; and

·        endorsing SWALSC to potentially become the Central Services Corporation.

 

These meetings are the first in a number of steps for the establishment of the Noongar Corporations. The next steps include registration with Office of the Registrar for Indigenous Corporations, and the Australian Taxation Office as well as Member Director postal vote elections and endorsement by the Government of Western Australia and the Noongar Boodja Trustee. 

 

The Noongar Corporations are expected to be operating by mid-2022.

 

Interested Noongar people are encouraged to contact the SWALSC  to get involved with the Noongar corporations and other opportunities linked to the Noongar governance structure.  SWALSC have also recently launched a new membership app for staying up to date about the Settlement.

 

For more information about the Noongar Corporation establishment process, please read the Regional Corporation Transition Program or fill in the Expression of interest to join your Noongar regional corporation (SWALSC site).

 

What are the Noongar corporations?

The Noongar corporations are the most integral part of the Noongar governance structure, they are the only beneficiaries of the Noongar Boodja Trustee, and will be a direct Noongar voice to the WA Government on Aboriginal heritage, land management, economic participation and community development matters.

 

Only once the Noongar corporations are formed can the fulsome benefits and opportunities from the Settlement be realised. The Noongar Regional Corporations will:

·        manage and use the land and waters within the region which they have a traditional connection;

·        develop a strategic plan based on regional priorities;

·        maintain, protect, promote and support their culture, customs, language and traditions

·        engage with government and stakeholders to further Noongar community interests and priorities; and

·        meet the various obligations created through the Settlement.

 

The WA Government looks forward to partnering with the Noongar people, through their corporations, for a stronger future for all West Australians.

17.1.3       Letter from Allannah MacTiernan MLC – Busselton Performing Arts and Convention Centre

A letter from Alannah MacTiernan MLC regarding the Busselton Performing Arts and Convention Centre is at Attachment B.

17.1.4       Thank You Letter - Building Busselton Town Team

A letter from Lisa Skrypichayko, Building Busselton Town Team, thanking the City for its involvement in the Celebrate Mitchell Park event, is at Attachment C.

 

 

 


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17.1

Attachment a

Current State Administrative Tribunal Reviews

 



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17.1

Attachment b

Letter from Alannah MacTiernan MLC - Busselton Performing Arts and Convention Centre

 


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17.1

Attachment c

Thank You Letter - Building Busselton Town Team

 


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18.             Motions of which Previous Notice has been Given

Nil

 

19.             urgent business

 

20.             Confidential Matters

Nil 

 

21.             Closure