Council Agenda

 

 

 

8 December 2021

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 8 December 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, 8 December 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

 

26 November 2021


CITY OF BUSSELTON

Agenda FOR THE Council MEETING TO BE HELD ON 8 December 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 Council Meeting held 24 November 2021. 6

Committee Meetings. 6

8.2          Minutes of the Audit and Risk Committee Meeting held 18 November 2021. 6

8.3          Minutes of the Finance Committee Meeting held 24 November 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        Audit and Risk Committee - 18/11/2021 - CITY OF BUSSELTON 2020/2021 ANNUAL FINANCIAL REPORT, AUDITORS' REPORT AND MANAGEMENT LETTER. 7

12.2        Audit and Risk Committee - 18/11/2021 - 2021 OFFICE OF AUDITOR GENERAL CYBER SECURITY AND GENERAL COMPUTER CONTROLS AUDIT. 89

12.3        Finance Committee - 24/11/2021 - LIST OF PAYMENTS MADE - OCTOBER 2021. 111

12.4        Finance Committee - 24/11/2021 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 OCTOBER 2021. 121

12.5        Finance Committee - 24/11/2021 - SELF SUPPORTING LOAN APPLICATION - GEOGRAPHE BAY YACHT CLUB INC. 153

12.6        Finance Committee - 24/11/2021 - SELF SUPPORTING LOAN APPLICATION - MARGARET RIVER BUSSELTON TOURISM ASSOCIATION.. 158

13..... Planning and Development Services Report. 198

14..... Engineering and Work Services Report. 199

14.1        RFT 19/21 DNSL SPORTS PRECINCT CARPARK & COURTS. 199

14.2        MEELUP REGIONAL PARK COMMITTEE - APPOINTMENT OF COMMUNITY MEMBERS. 205

15..... Community and Commercial Services Report. 212

15.1        EXPRESSION OF INTEREST -  RESERVE 46187 LOT 448 MARINE TERRACE; OLD TENNIS CLUB BUILDING.. 212

15.2        MARKETING AND EVENTS REFERENCE GROUP OUTCOMES. 219

16..... Finance and Corporate Services Report. 227

16.1        ADOPTION OF 2020-2021 ANNUAL REPORT. 227

17..... Chief Executive Officers Report. 355

17.1        COUNCILLORS' INFORMATION BULLETIN.. 355

18..... Motions of which Previous Notice has been Given.. 404

19..... urgent business. 404

20..... Confidential Matters. 404

21..... Closure. 404

 


Council                                                                                      4                                                               8 December 2021

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

 

2.               Attendance 

Apologies

 

Approved Leave of Absence

 

Nil

 

3.               Prayer

 

4.               Application for Leave of Absence

 

5.               Disclosure Of Interests

 

6.               Announcements Without Discussion

Announcements by the Presiding Member

 

7.               Question Time For Public

Response to Previous Questions Taken on Notice

Public Question Time For Public


 

8.               Confirmation and Receipt Of Minutes 

Previous Council Meetings

8.1             Minutes of the Council Meeting held 24 November 2021

Recommendation

That the Minutes of the Council Meeting held 24 November 2021 be confirmed as a true and correct record.

 

Committee Meetings

 

8.2             Minutes of the Audit and Risk Committee Meeting held 18 November 2021

RECOMMENDATION

 

That the Minutes of the Audit and Risk Committee Meeting held 18 November 2021 be noted.

 

 

8.3             Minutes of the Finance Committee Meeting held 24 November 2021

Recommendation

That the Minutes of the Finance Committee Meeting held 24 November 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                                                               8 December 2021

12.             Reports of Committee

12.1           Audit and Risk Committee - 18/11/2021 - CITY OF BUSSELTON 2020/2021 ANNUAL FINANCIAL REPORT, AUDITORS' REPORT AND MANAGEMENT LETTER

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

Financial Operations

BUSINESS UNIT

Financial Services

REPORTING OFFICER

Manager Financial Services - Paul Sheridan

AUTHORISING OFFICER

Acting Director, Finance and Corporate Services - Sarah Pierson

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   Audit Opinion

Attachment b    Financial Statements for the Year Ending 30 June 2021

Attachment c    Management Letter Year Ending 30 June 2021

 

This item was considered by the Audit and Risk Committee at its meeting on 18/11/2021, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council:

1.         Accepts the 2020/21 Annual Financial Report including Auditors Report and Audit Management Report as per the attached documentation;

2.         Notes that it has met the requirements of section 7.12A(2) of the Local Government Act 1995 with the Audit Committee, on behalf of Council, having met with a representative of the Office of the Auditor General on the 18th November 2021; and

3.         Acknowledges the significant improvements of the City’s Financial Health Indicators score and acknowledges the role of staff in responding to the Council concerns about previous Financial Health Indicators performance.

 

Reasons:      To acknowledge the recent improvements of the City’s Financial Health Indicators score and the role of staff in achieving these improvements.

 

OFFICER RECOMMENDATION

That the Council:

1.         Accepts the 2020/21 Annual Financial Report including Auditors Report and Audit Management Report as per the attached documentation; and

2.         Notes that it has met the requirements of section 7.12A(2) of the Local Government Act 1995 with the Audit Committee, on behalf of Council, having met with a representative of the Office of the Auditor General on the 18th November 2021.

 

 

 

 

EXECUTIVE SUMMARY

The signed Independent Auditors Report and Management Letter, in relation to the 2020/21 Annual Financial Statements, were received from the Office of the Auditor General on 15 November 2021, and are provided to Committee Members as attachments to this report, along with the final draft of the 2020/21 Annual Financial Statements. Pursuant to its Instrument of Appointment, it is relevant that the Audit and Risk Committee considers the 2020/21 Annual Financial Statements, Auditors Report and Management Letter and, where appropriate, makes recommendation/s in respect of these reports.

 

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

 

BACKGROUND

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

(a)       The Mayor or President

(b)      The Chief Executive Officer; and

(c)       The Minister

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

 

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

 

Representatives of the Audit and Risk Committee and City officers met with the OAG at an entrance meeting held on the 22 April 2021. At this meeting, the OAG outlined the process for the annual audit (including interim and final).

The final audit took place from the 4 to 15 October 2021.  An exit meeting was held with the Mayor and Deputy Mayor, CEO and relevant officers on the 10 October 2021. The OAG has since provided their signed audit report, including the opinion and management letter, attached to this report.

OFFICER COMMENT

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

 

As part of the 2020/21 Financial Audit, the Auditor made one finding, deemed as moderate.

“1.  Recording of Inventory Stocktake

Finding

When performing our testing over inventory, we noted that the stocktake quantity is not recorded in the stock count sheet by it’s physical count but in invoiced order batch. For example, there was physically 14 light poles but was recorded on the stock sheet as 1 due to all 14 being on the same invoice batch.”

 

Full details and City of Busselton Management comments can be seen in the 2020-21 Management Letter attachment.

 

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

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

 

Statutory Environment

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

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

§  Local Government (Financial Management) Regulations 1996.

§  Local Government (Audit) Regulations 1996 – Regulation 16

 

Relevant Plans and Policies

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

 

Financial Implications

There are no financial implications associated with the officer recommendation.

 

Stakeholder Consultation

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

 

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

 

Risk Assessment

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

 

Options

The Audit and Risk Committee may determine to make specific recommendations in relation to the audit findings and the actions identified by management in addressing these.  Given the operational nature of the one issue that arose and that this is planned to be addressed, officers do not think specific resolutions are necessary.

 

CONCLUSION

The City achieved a clear audit for the financial year ending 30 June 2021 with only one moderate finding reported in the Management Letter.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

 


Council

12

8 December 2021

12.1

Attachment a

Audit Opinion

 




Council

20

8 December 2021

12.1

Attachment b

Financial Statements for the Year Ending 30 June 2021

 











































































Council

88

8 December 2021

12.1

Attachment c

Management Letter Year Ending 30 June 2021

 



Council                                                                                      91                                                             8 December 2021

12.2           Audit and Risk Committee - 18/11/2021 - 2021 OFFICE OF AUDITOR GENERAL CYBER SECURITY AND GENERAL COMPUTER CONTROLS AUDIT

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

Audit Reporting

BUSINESS UNIT

Information Services

REPORTING OFFICER

Manager Information Services - Kris Davis

AUTHORISING OFFICER

Acting Director, Finance and Corporate Services - Sarah Pierson

NATURE OF DECISION

Noting: The item is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Office of Auditor General - Information Services Audit Findings and Response

 

This item was considered by the Audit and Risk Committee at its meeting on 18/11/2021, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council:

1.         Notes the 2021 Office of Auditor General Information System Audit findings for the Information Systems and Cyber Security audits as per the attached documentation; and

 

2.         Receives an update report on the implementation of Office of Auditor General recommendations as part of the 2022 interim audit report.

 

Reasons:      To ensure oversight of the implementation of the recommendations.

 

OFFICER RECOMMENDATION

That the Council notes the 2021 Office of Auditor General Information System Audit findings for the Information Systems and Cyber Security audits as per the attached documentation.

 

EXECUTIVE SUMMARY

The draft audit findings were received from the Office of the Auditor General (OAG) on 27 October 2021, and are provided to the Audit and Risk Committee as attachments to this report.  Pursuant to its Instrument of Appointment, it is relevant that the Audit Committee considers the findings and associated responses, and where appropriate, makes recommendation/s in respect of these reports.

BACKGROUND

The City of Busselton were selected to be involved in the Cyber Security audit by the OAG as part of the larger ‘State of cyber security in Local Government(LG) entities (Local)’ audit to be tabled in the fourth quarter of 2021. This audit took place on premise in June 2021.

The City of Busselton were additionally selected to be involved in the General Computer Controls audit by the OAG as part of the ‘Local Government General Computer Controls’ report for 2021. This audit took place on premise in July 2021.

The audits are designed to identify areas for improvement when assessed against the OAG benchmarks set for Information Systems within local government.

OFFICER COMMENT

The majority of findings presented by the OAG are accepted by management with the audits helping to identify gaps in its security systems and processes. When reviewing the findings and responses it’s worth noting that many of the processes are already in place but not documented, hence a recommendation for the item exists even though we are actively carrying out the task.

 

These audits, whilst resource intensive, are an excellent way of ensuring we are continually improving in our Cyber and Information security controls.  In saying that, some of the recommendations require significant resources to implement them and / or are not considered suitable to our environment when balanced against the costs in terms of staff efficiency and increased budget requirements. It should be noted that larger councils still do not adhere to the benchmarks set out by the OAG, of the 11 councils audited in 2020 none met the benchmarks in all areas.

 

The specific actions resulting from the audits are outlined in the attachment.

 

Statutory Environment

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

 

Relevant Plans and Policies

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

 

Financial Implications

There are no immediate financial implications associated with the officer recommendation but it should be noted that increased ICT costs will be introduced in future years as the need to address Cyber and Information Security grows according to the increasing risk.

 

Stakeholder Consultation

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

 

Risk Assessment

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


 

Options

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

CONCLUSION

The City has agreed with the majority of recommendations provided by the OAG and those not considered currently acceptable will be reassessed in future years. The City is continually evolving to protect the information and service its ICT infrastructure providers, Cyber related threat within our modern computing world is increasing every day and we must remain focused to ensure we do not become a victim.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

A timeline of each recommendation is provided within the attachment.


Council

110

8 December 2021

12.2

Attachment a

Office of Auditor General - Information Services Audit Findings and Response

 




















Council                                                                                      112                                                          8 December 2021

12.3           Finance Committee - 24/11/2021 - LIST OF PAYMENTS MADE - OCTOBER 2021

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

Financial Operations

BUSINESS UNIT

Financial Services

REPORTING OFFICER

Manager Financial Services - Paul Sheridan

AUTHORISING OFFICER

Acting Director, Finance and Corporate Services – Sarah Pierson

NATURE OF DECISION

Noting: The item is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   List of Payments - October 2021

 

This item was considered by the Finance Committee at its meeting on 24/11/2021, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council notes payment of voucher numbers M118971 – M119007, EF082495 – EF083069, T7575 – T7577, DD004629 – DD004657, as well as payroll payments, together totalling $7,738,730.42.

 

OFFICER RECOMMENDATION

That the Council notes payment of voucher numbers M118971 – M119007, EF082495 – EF083069, T7575 – T7577, DD004629 – DD004657, as well as payroll payments, together totalling $7,738,730.42

 

EXECUTIVE SUMMARY

This report provides details of payments made from the City’s bank accounts for the month of October 2021, for noting by the Council and recording in the Council Minutes.

 

BACKGROUND

The Local Government (Financial Management) Regulations 1996 (the Regulations) requires that, when the Council has delegated authority to the Chief Executive Officer to make payments from the City’s bank accounts, a list of payments made is prepared each month for presentation to, and noting by, the Council.

OFFICER COMMENT

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

Statutory Environment

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

Relevant Plans and Policies

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

Financial Implications

There are no financial implications associated with the officer recommendation.

Stakeholder Consultation

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

Risk Assessment

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

Options

Not applicable.

CONCLUSION

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

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Council

120

8 December 2021

12.3

Attachment a

List of Payments - October 2021

 









Council                                                                                      138                                                          8 December 2021

12.4           Finance Committee - 24/11/2021 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 OCTOBER 2021

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

Financial Services

BUSINESS UNIT

Financial Services

REPORTING OFFICER

Manager Financial Services - Paul Sheridan

AUTHORISING OFFICER

Acting Director, Finance and Corporate Services – Sarah Pierson

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   Loan Schedule - October 2021

Attachment b    Financial Activity Statement - October 2021

Attachment c    Investment Report - October 2021

 

This item was considered by the Finance Committee at its meeting on 24/11/2021, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 31 October 2021, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations 1996.

 

OFFICER RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 31 October 2021, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations 1996.

 

EXECUTIVE SUMMARY

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

 

This report has been compiled to fulfil the statutory reporting requirements of the Act and associated Regulations, whilst also providing the Council with an overview of the City’s financial performance on a year to date basis, for the period ending 31 October 2021.

 

BACKGROUND

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

·        Annual budget estimates

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

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

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

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

 

Additionally, and pursuant to Regulation 34(5) of the Regulations, a local government is required to adopt a material variance reporting threshold in each financial year. At its meeting on 26 July 2021, the Council adopted (C2107/140) the following material variance reporting threshold for the 2021/22 financial year:

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

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

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

OFFICER COMMENT

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

Statement of Financial Activity

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

Net Current Position

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

Capital Acquisition Report

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

·        Land and Buildings

·        Plant and Equipment

·        Furniture and Equipment

·        Infrastructure

Reserve Movements Report

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

 

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

Comments on Financial Activity to 31 October 2021

The Statement of Financial Activity (FAS) for the year to date (YTD) shows an overall Net Current Position of $41.2M as opposed to the budget of $29.4M. This represents a positive variance of $11.7M YTD.

 

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

 

Description

2021/22
Actual YTD

$

2021/22
Amended
Budget YTD

$

2021/22
Amended
Budget

$

2021/22
YTD Bud Variance

%

2021/22
YTD Bud Variance

$

Change in Variance Current Month

$

Revenue from Ordinary Activities

 

1.06%

706,459

178,339

1.    Other Revenue

295,153

60,366

414,950

388.94%

234,787

112,547

2.    Interest Earnings

368,214

293,317

609,250

25.53%

74,897

(88,651)

Expenses from Ordinary Activities

 

10.09%

2,873,121

210,300

3.    Materials & Contracts

(4,521,911)

(5,731,355)

(20,245,296)

21.10%

1,209,444

(34,673)

4.    Other Expenditure

(917,720)

(1,932,260)

(9,685,100)

52.51%

1,014,540

99,384

5.    Non-Operating Grants, Subsidies and Contributions

733,230

6,145,480

34,850,687

(88.07%)

(5,412,250)

(10,000)

Capital Revenue & (Expenditure)

 

43.57%

11,127,439

1,339,261

6.    Land & Buildings

(239,630)

(7,157,974)

(22,802,632)

96.65%

6,918,344

1,467,984

Plant & Equipment

(452,278)

(298,000)

(2,890,000)

(51.77%)

(154,278)

160,000

Furniture & Equipment

(84,172)

(295,950)

(828,800)

71.56%

211,778

(1,395)

Infrastructure

(4,059,704)

(11,161,530)

(38,537,750)

63.63%

7,101,826

991,282

7.    Proceeds from Sale of Assets

0

146,450

776,071

(100.00%)

(146,450)

(74,950)

8.    Transfer to Restricted Assets

(4,692,012)

0

(21,740)

(100.00%)

(4,692,012)

(2,022,226)

9.    Transfer from Restricted Assets

1,673,460

0

1,735,682

100.00%

1,673,460

778,988


Revenue from Ordinary Activities

In total, revenue from Ordinary Activities is very close to budget at only 1.06% ahead YTD.  There are however some material variance items, that contribute to this.

                                   

1.      Other Revenue

Ahead of YTD budget by $235K, or 388.9%, mainly due to the items listed in the table below:

Revenue Code

Revenue Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Finance & Corporate Services

36,787

10,770

26,017

241.57%

21,173

10100

Long Service Leave Re-imbursements from other LG’s

25,999

 -

25,999

(100.00%)

25,999

The reimbursement came in a lot earlier than was originally predicted in the budget.  This will rectify by year end.

Planning & Development Services

30,263

44,064

(13,801)

(31.32%)

(11,875)

10940

ESL Commission

 -

11,825

(11,825)

(100.00%)

(11,825)

The commissions from DFES for the administration of the Emergency Services Levy have not yet been received.

Engineering and Works Services

218,530

4,162

214,368

5150.60%

105,402

G0030 & G0031

Busselton & Dunsborough  Transfer Station – Sale of Scrap Materials

215,728

3,734

211,994

5677.41%

105,868

The budget for the receipt of income relating to the sale of scrap materials (metal in particular) has not been aligned effectively with actual receipts. This should rectify somewhat as the year progresses.  It should also be noted that the prices received for scrap metal have been extremely favourable – up to $220/tonne received in July and $255/tonne received in October for major collections in both months, compared to $110-$140/tonne during 2020. When prices are this good, a lot more material is moved to take advantage (causing budget timing variances). When they are lower, materials are stockpiled and only moved when space is required (which gives rise to the historic trend of the budget timing).

 

2.      Interest Earnings

Interest earnings are $75K ahead of budget due to the total annual budget being allocated based on the monthly 4-year trend. The actual levying of annual rates, and when all interest is charged in advance for 21/22, does not match this trend, therefore the City will see a timing difference to budget for the first and second quarters of the 21/22 financial year. This will decrease as the year progresses.

 

Expenses from Ordinary Activities

Expenditure from ordinary activities is $2.9M, or 10.1%, less than expected when compared to the budget YTD as at October. The expense line items on the face of the financial statement that have a YTD variance that meet the material reporting threshold are outlined below.


 

3.     Materials & Contracts

Less than YTD budget by $1.2M.  The main contributors to this variance are listed in the table below:

Cost Code

Cost Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Finance and Corporate Services

451,477

807,158

355,681

44.1%

75,512

10000

Members of Council

12,899

64,028

51,129

79.9%

13,473

Timing variance with payment of WALGA subscriptions delayed.  These variances will persist even when this is paid, as the actual cost will spread and be allocated evenly over the term of the subscription, whereas the budget was set on a historical cash-outlay basis.

10105

Business Systems Improvement Team

 -

10,584

10,584

100.0%

2,646

It is expected that the budget allocation of $31,750 will remain unused until the end of December when there will be expenditure of about $18K on consultants to support the change of the chart of accounts. The remaining $13,750 budget allocation will not expected to be used until March 2022.

10151

Rates Administration

93,861

108,321

14,460

13.3%

15,480

Variation between YTD actual and budget is mainly because of the following reasons:

·        Postage $10.8K under budget due to 2nd instalment notice postage invoice having not been processed plus cost savings by using a new printing service for final and reminder notices

·        Printing $4.4K over budget due to bushfire flyer printing costs incorrectly charged to rates and a redesign of the 2021/22 annual rate notice layout was necessary to improve EasyRates information and apply a QR code.

·        Bank charges $18.4K under budget as the charges have come a lot less than expected.

·        Legal expenses $16.4K over budget due to a substantial increase in debt recovery proceedings. This expenditure is fully recovered from the property owner/s.

·        Consultancy $5K under budget due to the rating review project that this budget is for only just now commencing.

10200

Financial Services

14,304

38,194

23,891

62.6%

13,438

Savings to budget are as a result of bank charges not coming in at the level expected, and some budgeted subscriptions either being cancelled or allocated to more appropriate areas.

10250

Information & Communication Technology Services

246,122

353,033

106,911

30.3%

7,193

Most of this budget relates to software licence renewals and subscriptions paid in advance.  The monthly allocation of the annual budget was set based on an historical 4 year monthly cash payment trend. This will not necessarily align with the new prepaid expenses allocation process that has been adopted to more accurately reflect proper accrual accounting practices.

10500

Legal and Compliance Services

511

41,048

40,537

98.8%

9,110

The variance YTD relates predominantly to the unspent budgeted amount for external legal services.  It is not possible to predict when or to what extent legal services will be required at the time of setting the budget, therefore the annual allocation is spread evenly over the year.

10510

Governance Support Services

7,989

39,019

31,030

79.5%

6,290

The underspend is due to a number of software licenses for programs used in the Governance area not as yet being renewed. When paid, the cost for these will be spread over the term of the license, so timing differences to the budget (set based on historical cash trend), will persist.

10616, 10617, & 10618

Aged Housing

12,790

55,954

43,164

77.1%

12,152

We can never say with certainty when this budget will be drawn on, even in comparison to prior year trends, as works are carried out throughout the year and generally need to coincide with vacancies.  It is likely refurbishment works will be carried out on at least one unit in the next 4-6 weeks.

Community and Commercial Services

424,047

871,639

447,592

51.4%

40,236

10380 & 10381

Busselton & Dunsborough Libraries

32,212

81,037

48,825

60.2%

28,434

The variances YTD mainly arise in relation to the cost of Computer Software Licences used at the libraries being spread over the period they relate to, rather than when the cash is outlaid, which is how the budget was allocated.

10540

Recreation Administration

(2,729)

25,681

28,410

110.6%

(5,993)

The credit relates to year end accrual reversals for which invoices are still yet to be received.

10543

Community Development

36

60,000

59,964

99.9%

5,000

This relates to the Strengthening Communities program funded by Lotterywest. The program is still in development and procurement has not yet taken place. It is anticipated that this program will be launched during November/December with bulk of expenditure now expected from Jan 2022. Timing of disbursement may need to be amended a mid-year budget review.

10591

Geographe Leisure Centre

112,859

100,518

(12,341)

(12.3%)

342

The overspend YTD is due to increased expenditure in cleaning consumables/maintenance, earlier than forecast procurement of non-capital furniture and office equipment, and increased expenses for café consumables, which is offset by additional income.

10600

Busselton Jetty Tourist Park

130,466

188,912

58,446

30.9%

2,497

The YTD variance is mainly due to the monthly payment of the Park Management Contract being one month in arrears.  By end of financial year this expenditure catches up, as June will be accrued, however the budget timing does not reflect this.

10625

Art Geo Administration

25,004

37,527

12,523

33.4%

2,921

The underspend at ArtGeo is offset in wages i.e. where staff have the skills to deliver the service we use them and not contractors as it achieves better outcomes.

10630

Economic and Business Development Administration

16,044

28,980

12,936

44.6%

3,450

The majority of this spend is allocated in Consultancy and with ED team not resourced at this time, consultancy tasks have been deferred to 2022.

11151

Airport Operations

60,404

254,280

193,876

76.2%

18,364

YTD variances are mainly due to:

·    Airport screening services – allocated monthly amounts have been delayed until flights start.

·    Planned consultancy tasks not started.

·    A number of contractor invoices having not been received.

·    Underspends in Contract building cleaning costs & fire safety materials.


 

B1361

YCAB (Youth Precinct Foreshore)

11,542

35,903

24,362

67.9%

968

The variance is due to:

·        Crime prevention grant for a series of workshops delivered to schools. Workshops were due to commence in August but the dates were changed to September and have not yet been invoiced.

·        Delay in processing grant tax invoices for COVID-19 Youth recovery grants for the leadership camp. The camp was held over the weekend of 20 August 2021. Accommodation payment on the corporate credit card has not yet been processed as yet.

·        August and September purchases on credit card have not been processed.

·        Mental Health Week event budget was not utilised as paired with Raising the Vibe concert.

·        Crime prevention grant cost for August/ Sept/ October/ November will now be delivered in Jan 2022.

Planning and Development Services

272,218

193,628

(78,590)

(40.6%)

(48,470)

10805

Planning Administration

3,828

13,912

10,084

72.5%

2,538

Computer software license renewals have not as yet been received so not allocations for these costs have occurred yet.

10820

Strategic Planning

15,883

52,368

36,485

69.7%

2,226

The variance YTD is essentially due to holistic Consultancy budget being allocated across the 12-month period. Strategic Planning is subject to competing demands and project prioritisation (also timing delays etc. due to consultancy periods, peak authority feedback or processes and lack of availability on occasion of specialised consultant assistance). Appointment of consultants or other anticipated strategic expenditures are always difficult to predict on that basis.    

10922

Preventative Services – Mosquitoes

29,131

7,787

(21,344)

(274.1%)

(23,443)

The City’s contribution to the CLAG chemical and communications budget has been transferred after receiving the Department of Health grant for mosquito control.

10925

Preventative Services - CLAG

73,038

29,000

(44,038)

(151.9%)

(18,046)

The CLAG budget is fully reconciled with the Shire of Capel after the mosquito season each year.  This will occur circa February and all changes made accordingly by the EOFY each year.

10931

Protective Burning & Firebreaks-Reserves

87,738

7,182

(80,556)

(1121.6%)

(10,110)

The YTD variance is as a result of an invoice for works completed late in the 20/21 financial year that was not accrued.  Funding from DFES was received in last financial year for these works, so this contributed to part of the end of year budget surplus, but will therefore effectively reduce any 21/22 financial year surplus.


 

10950

Animal Control

9,842

22,517

12,675

56.3%

1,670

The YTD underspend variance relates to the following:

·        Loose Tools Purchase - $1.2K for the Spectur Annual Charges

·        Purchase of Materials:

o   $4.5K due to only 1 pallet of dog bags being purchased as a result of reduced usage over winter period.  Another pallet will be purchased November (forecast 1 pallet per quarter)

o   $1.5K due to purchase of cat cages delayed (ACF modification)

·        Computer Software Licenses & Cloud Services - $750 due to timing delay in prepaid cost allocation

·        Fines Enforcement Costs - $1.3K underspend. Fines enforcement referrals are processed on an ad-hoc basis, and dependent on non-payment of fines.

Various

Bushfire Brigades

21,030

11,406

(9,624)

(84.4%)

615

Bush Fire Brigades are currently preparing for the upcoming fire season. A large amount of PPE has been purchased in readiness for dispersal to BFB as required.

Engineering and Works Services

3,258,839

3,856,955

598,116

15.5%

12,853

10830

Environmental Management Administration

95,917

120,611

24,694

20.5%

(21,144)

Annual budgets for consultancy, contractors and purchase of materials were allocated at the end of each quarter.  Historic expenditure is weighted in a large proportion during the second half of the year and so a review of budget timing will be undertaken. Approximately $30K of invoices for street tree planting, revegetation and weed control were approved in October.  Spring weed control is currently underway.

11170

Meelup Regional Park

10,636

85,330

74,694

87.5%

22,306

The recreation reserve maintenance budget was spread evenly across the year and thus does not reflect seasonally impacted expenditure patterns. To this end, planning is underway for the noxious weed control program and works associated with the Healthy Countries Plan. $95K in works have been committed representing works that are now underway or will commence shortly.   

12600

Street & Drain Cleaning

87,823

137,057

49,234

35.9%

26,180

The budget was entered based on historical expenditure patterns averaged over the previous three financial years. All of $465K annual budget has already been committed based on a scheduled maintenance plan, so the YTD variance is timing only.

12620 & 12621

Rural & Urban Tree Pruning

144,238

368,981

224,743

60.9%

50,602

This year’s rural tree pruning budget of $352K included $153K carried over from the prior year. Works are ordinarily planned to be done by the end of November 2021 however priority has been given to storm damage clean-up activities meaning some of these works will now occur later the financial year. The rural road verges to be pruned are prioritised based on the time since last pruned, inspections, volume and types of traffic and numerous other considerations. This is a timing variance only.

Various

Bridge Maintenance

26,689

124,623

97,934

78.6%

7,782

Bridge Maintenance works are largely scheduled to occur post-Christmas and in the later part of the financial year when water flows are at their lowest; planning of these works are well underway. Bridge maintenance works scheduled in 2020/21 were postponed due to May 2020 storm costs incurred, with $208,000 of the 2021 budget subsequently carried over into the first quarter of this the new financial year. This variance will moderate as this level with the remaining budget realigned to later in the year commensurate with when works are planned to commence.


 

Various

Building Maintenance

435,085

372,442

(62,643)

(16.8%)

(4,815)

The budget was entered based on historical expenditure patterns averaged over the previous three financial years. Traditionally the region is impacted by seasonality, but this year has seen unprecedented volumes of tourists through all months of the year, leading to higher usage levels and maintenance at this point in the year when compared to historical financial data. This variance is considered a timing variance only at this point, and adjustments to budgets in accordance with building maintenance timing will be made should the trend for higher usage through off-peak times continue.

Various

Waste Services

581,420

804,098

222,678

27.7%

(43,596)

$135K of the variance is associated with concrete crushing and a further $73K is associated with green waste processing, both that are planned for later in the financial year. $87K is attributable to External Restoration Works associated with the Rendezvous contaminated sites matter while another $38K of the variance is associated with postponement of the FOGO trial, where no costs are being incurred.

Various

Roads Maintenance

427,971

267,896

(160,075)

(59.8%)

(78,549)

Road Maintenance activities are generally greater in the first five months of the year as the City’s maintenance and construction crews focus on maintenance grading, road shoulders maintenance, road surface repair, drainage maintenance, fixing pot holes etc. There has been an overspend to budget mostly attributable to greater than anticipated works in relation to storm damage clean-up activities contributing to the year to date variance.     

 

4.      Other Expenditure  

$1M, or 52.5%, under the budget YTD. The main contributing items are listed below:

Cost Code

Cost Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Community and Commercial Services

442,970

1,476,263

1,033,293

70.0%

69,046

10532

BPACC Operations

(350)

12,500

12,850

102.8%

 -

BPACC operational activity will not commence until such time as the Tender for construction has been awarded and timeframes for delivery of the project are known.

10543

Community Development

145

63,367

63,222

99.8%

 -

This relates to the first two rounds of Community Assistance Program. Round 1 and 2 approvals were combined due to Council elections. Expected a similar trend in October, with approx. $50,853 by end of November.  Timing is largely dependent on CAP Applications received from community groups.

10558

Events

233,322

355,608

122,286

34.4%

314

There have been 3 funded events (Pedal Prix WA, SW Mudfest, Cape Naturaliste Pro) cancel for a total of $38k. We are also waiting on a number of events to invoice us for event sponsorships. 

Also, as the timing of Events budget expenditure is estimated prior to the actual allocation of sponsorship, it is impossible to know exactly when the expenditure will occur. With the allocation of the remaining events sponsorship budget due to go to Council in December, we will have a clearer picture of how the budget will be expended.

10634

Business Support Program

 -

23,850

23,850

100.0%

 -

Final acquittals of the support program yet to be received.  This budget was carried over from the 20/21 financial year, funded from the MERG Reserve, however it has now been ascertained that only approximately $10,000 will be required.  This will more than likely be the positive variance by the end of the year, offset by a lower transfer from the reserve.


 

11151

Airport Operations

 -

767,204

767,204

100.0%

191,676

Marketing activities continue to be delayed due to the postponement of Jetstar RPT services as a result of COVID restrictions/lockdowns etc. in the Eastern States.

11156

Airport Development Operations

115,139

148,550

33,411

22.5%

(115,139)

At the time of setting the budget the timing for the final carried over payments related to a noise mitigation project were not known. $148K is estimated to be remaining in total, split over three payments in September, November and January. As such, there will be budget timing variances until these payments are completed. 

Planning and Development Services

60,535

45,786

(14,749)

(32.2%)

10,874

10925

Preventative Services – CLAG

24,930

9,980

(14,950)

(149.8%)

(18,317)

The CLAG budget is reconciled with the Shire of Capel on an annual basis, approximately in April, meaning there will always be an overspend shown until this time.

 

5.      Non-Operating Grants, Subsidies & Contributions  

The negative variance of $5.4M is mainly due to the items in the table below. It should be noted that any negative variance in this area will approximately correlate to an offsetting positive underspend variance in a capital project tied to these funding sources. This can be seen in the section below that outlines the capital expenditure variances.  Where this is not the case, the reconciliation of the projects and the required funding to be recognised in revenue is not competed until closer to year end.

Revenue Code

Revenue Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Community and Commercial Services

 -

66,401

(66,401)

(100.0%)

 -

10540

Recreation Administration

 -

25,625

(25,625)

(100.0%)

 -

10590

Naturaliste Community Centre

 -

23,350

(23,350)

(100.0%)

 -

C6010

Airport Fencing Works

 -

17,426

(17,426)

(100.0%)

 -

Engineering and Works Services

728,230

6,074,079

(5,345,849)

(88.0%)

(10,000)

A0014

Bussell Highway Bridge – 0241 – Federal Capital Grant

 -

744,000

(744,000)

(100.0%)

 -

A0022

Yallingup Beach Road Bridge - 3347 – Federal Capital Grant

 -

700,000

(700,000)

(100.0%)

 -

A0200

Donated Bridges

698,230

 -

698,230

100.0%

 -

B9407

Busselton Senior Citizens – Developer Cont. Utilised

 -

111,750

(111,750)

(100.0%)

 -

B9591

Performing Arts Convention Centre – Federal Capital Grant

 -

2,277,000

(2,277,000)

(100.0%)

 -

B9999

Donated Buildings

30,000

 -

30,000

100.0%

30,000

F0112

Causeway Road Shared Path – State Capital Grant

 -

80,000

(80,000)

(100.0%)

(40,000)

S0048

Bussell Highway – Developer Cont. Utilised

 -

200,000

(200,000)

(100.0%)

 -


 

S0076

Kaloorup Road (Stage 1) – Main Roads Direct Grant

 -

224,400

(224,400)

(100.0%)

 -

S0077

Ludlow-Hithergreen Stage 2 Reconstruct & Widen – MR Capital Grant

 -

96,000

(96,000)

(100.0%)

 -

S0078

Sugarloaf Road –

State Capital Grant

 -

321,599

(321,599)

(100.0%)

 -

S0321

Yoongarillup Road - Second Coat Seal –

MR Capital Grant

 -

100,000

(100,000)

(100.0%)

 -

S0331

Barracks Drive Spray Seal – MR Capital Grant

 -

130,980

(130,980)

(100.0%)

 -

S0332

Inlet Drive Spray Seal –

MR Capital Grant

 -

47,000

(47,000)

(100.0%)

 -

S0333

Chapman Crescent Spray Seal – MR Capital Grant

 -

78,000

(78,000)

(100.0%)

 -

S0334

Chapman Hill Road – MR Capital Grant

 -

374,000

(374,000)

(100.0%)

 -

S0335

Kaloorup Road – MR Capital Grant

 -

120,475

(120,475)

(100.0%)

 -

S0336

Wildwood Road – MR Capital Grant

 -

468,875

(468,875)

(100.0%)

 -

 

6.      Capital Expenditure  

As at 31 October 2021, there is an underspend variance of 74.43%, or $14M, in total capital expenditure, with YTD actual at $4.8M against the YTD budget of $18.9M. A large portion of this positive underspend variance is offset by the negative variance in Non-Operating Grants, Contributions & Subsidies discussed above, with the remainder offset by the negative variances in Transfers From Reserves and Restricted Assets related to funds held aside for these projects. The attachments to this report include detailed listings of all capital expenditure (project) items, however the main areas of YTD variance are summarised as follows:

Cost Code

Cost Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Land

2,599

16,668

14,069

84.4%

4,167

10610

Property Services Administration

2,599

16,668

14,069

84.4%

4,167

This is a contingency fund for costs associated with land acquisition or disposal under the LTFP, such as advertising costs in relation to the proposed disposition of freehold land holdings at Ambergate.

Buildings

237,031

7,141,306

6,904,275

96.7%

1,463,817

B9614

Dunsborough Lakes Sporting Precinct-Pavilion /Changeroom Facilities

 -

75,000

75,000

100.0%

 -

There has been nil expenditure to date as the works have not yet commenced. The contract for Pavilion / Changeroom design was to be awarded in September 2021, with construction estimated to commence in April 2022.


 

B9300/1/2

Aged Housing

Capital Improvements

9,721

105,150

95,430

90.8%

5,150

Budgeted works were proposed to separate the power and drainage that service Winderlup Court and Winderlup Villas.  Whilst the power requirements are not triggered until the new conditional land title lots are created, the intention was to progress with this anyway. A purchase order has been raised for the preparation of an application to Western Power for an alternative power separation proposal and the contractor will report back once Western Power have responded.  The decision on which option to pursue cannot be made until this is received.

B9407

Busselton Senior Citizens

40,815

111,750

70,935

63.5%

(40,815)

Roofing upgrade works were planned to be completed July 2021, but were postponed due to unsuitable weather. Works have now commenced but the discovery of asbestos material will cause further delays to the works programme. Completion date estimated November 2021.

B9591

Performing Arts Convention Centre

10,861

6,139,510

6,128,649

99.8%

1,534,712

The project has been re-tendered with tenders closing 6 October 2021. 

B9596

GLC Building Improvements

35,969

71,284

35,315

49.5%

(3,756)

Proposed project for stadium ventilation has been put on hold, pending a review of capital projects.

B9605

Energy Efficiency Initiatives (Various Buildings)

86,013

111,580

25,567

22.9%

(7,851)

Works planned for commencement have encountered delays pending Western Power applications and approvals.

B9611

Smiths Beach

New Public Toilet

 -

250,000

250,000

100.0%

 -

Project commencement was delayed due to changes to the project scope as a result of potential changes to size of the toilet facilities and investigations into the capacity of the existing septic system/upgrade to an ATU system to accommodate these changes. Project planning is now underway, with preliminary design work completed.  Septic system design work is also underway.

Notification has been received by the entity that currently supplies the water that they are no longer able to supply water for City toilets. 

As such an MOU is being reviewed by the property team to establish viability of infrastructure works and costs for water supply. A clearing permit application is also underway, however all other activity on the project has been put on hold until these issues are resolved.

B9612

Churchill Park

Renew Sports Lights

7,160

212,850

205,690

96.6%

 -

Works were planned to take place in July 2021, however due to a budget increase of $73K from CSRFF grant funding, the project was re-scoped. RFQ’s have gone out, with design works expected to commence in November.  Actual works will not commence until after trotting season, sometime in February or March 2022.

B9615

Buildings Asset Management Plan High Use Allocation

33,922

 -

(33,922)

(100.0%)

(26,947)

21/22 expenditure budgeted to occur December – April, however urgent unplanned works have incurred expenditure earlier in the Financial Year. Majority of the cost is attributed to the replacement of the Old Fire Station doors, which were planned to commence January 2022 but brought forward to a change in contractor availability. Variance due to timing of works.

B9711

Busselton Airport – Building

 -

12,200

12,200

100.0%

 -

Small capital works projects that were planned to be completed prior to Jetstar flights commencing. These have been delayed due to the continuing deferment of the commencement of RPT flights.

B9717

Airport Construction - Existing Terminal Upgrade

 -

39,650

39,650

100.0%

 -

Invoicing in relation to the retention monies owing to Pindan for works completed has not yet been received.

Plant & Equipment

452,278

298,000

(154,278)

(51.8%)

160,000

10372

Dunsborough Cemetery

 -

20,000

20,000

100.0%

 -

The budget is for maintenance trailers for the cemetery, both for grave shoring equipment and watering equipment, as well as fencing and turf upgrades. The delay in procurement of these items is due to current workloads of relevant staff and other projects taking a higher priority to date.  Suitable specifications have now been developed and quotes are being sought.

10540

Recreation Administration

 -

40,000

40,000

100.0%

 -

The budget relates to a vehicle for the recently created Manager position. Vehicle has been ordered, delivery due in February.

10610

Property Services Administration

 -

35,000

35,000

100.0%

35,000

Vehicle has been ordered, delivery due in February.

10630

Property and Business Development

 -

40,000

40,000

100.0%

40,000

The budget relates to the replacement vehicle for the Manager Economic and Business Development.  Not yet ordered.

10810

Statutory Planning

 -

35,000

35,000

100.0%

35,000

Vehicle has been ordered, delivery due in February.

11107

Engineering Services Design

 -

70,000

70,000

100.0%

 -

Limited informal quotations were received for new survey equipment, which has delayed commencement of the procurement process.  Formal RFQ documentation will be prepared in October, with procurement planned for November.

11401

Transport – Workshop

 -

10,000

10,000

100.0%

10,000

The budget is for a replacement hydraulic press.  Specification requirements are being reviewed in light of supply chain issues.

11402

Plant Purchases (P10)

420,639

8,000

(412,639)

(5158.0%)

 -

This is a carryover from 2020/21 FY of the second generator for the DWF and a new rubbish truck.  The budget timing for this was later in the year. The $8K budget item relates to a trailer, specification has been developed, to be ordered in December and delivery expected in March.

11403

Plant Purchases (P11)

31,639

 -

(31,639)

(100.0%)

 -

This is a carryover from 2020/21 FY – the Turf Maintenance rough cut ute. The budget for this was included with the current year purchases, timed for later in the financial year.

Furniture & Office Equipment

84,172

295,950

211,778

71.6%

(1,395)

10250

Information & Communication Technology Services

58,185

 -

(58,185)

(100.0%)

(1,395)

Costs were incurred for new Attain software (for Governance), and the Council Chambers A/V upgrade, which were not budgeted for.

The new Promapp software (for business process mapping for the whole organisation) was also purchased earlier than expected.


 

10558

Events

 -

200,000

200,000

100.0%

 -

The budget October YTD represents the carry-over from the 20/21 year for the electronic billboard. The tender has closed with three responses, all of which have come in over the forecast budget. Options on how to proceed are currently being investigated and will be discussed with MERG at the November meeting.

10590

Naturaliste Community Centre

 -

34,950

34,950

100.0%

 -

Budget is for fencing to accommodate vacation care program and purchase of replacement fitness equipment. A purchase order will be raised in October for fencing works and an equipment purchase order will be finalised in November.

10900

Cultural Planning

 -

13,400

13,400

100.0%

 -

The virtual reality component of the Ballaarat Engine 150th display has been delayed waiting for an expected grant opportunity to help subsidise the project.

B1350

Churchill Park-

Other Buildings

 -

26,450

26,450

100.0%

 -

The budget relates to the storage facility project. Discussions are still progressing with the Stakeholders, delaying construction until a later date.

Infrastructure

4,059,704

11,161,530

7,101,826

63.6%

991,282

Various

Roads

823,181

2,889,375

2,066,194

71.5%

(194,808)

The majority of road construction happens during the months October to April. 84% of the YTD variance representing $1.733M is associated with the four projects being Wildwood Road (now underway) and Chapman Hill Road safety shoulder widening projects, the State blackspot project for the Sugarloaf Road upgrade and renewal that is unlikely to be completed this financial year and $599K variance associated with the major Peel / Queen street roundabout renewal works that were carried over from last financial year scheduled now to commence after Christmas.  All these project had their budget spread evenly across the year as works had not yet been scheduled. These projects are valued at $5.188M collectively and represent 41% of Road capital works for the year. Budgeted cash flows are not reflective of scheduled works which is resulting in this significant YTD variances.

Various

Bridges

698,230

1,444,000

745,770

51.6%

 -

Major bridge works are completed by Main Roads and are primarily scheduled to take place between the months of October to May when creek and river flows are at their lowest levels. Financial recognition of works often does not occur until late in the financial year. To date, Main Roads has completed works on the Bussell Highway bridge with works currently underway on the Yallingup Beach Road bridge #3347 and the Tuart Drive Bridge #0238, both of which are scheduled for completion in early 2022. Other major bridge works are currently out for tender by Main Roads with works anticipated to take place between January to May 2022. The City has limited control over Main Roads scheduling and it is often the case that some Bridge projects are rescheduled into the following year based on capacity. This variance is anticipated to continue to increase until invoices for works are provided by Main Roads.     

Various

Car Parks

208,168

983,486

775,318

78.8%

84,331

86% of the YTD variance is attributable to the following projects:

·        Dunsborough Lakes Sporting Precinct (Stage 1) – Car parking under spent to YTD budget by $533K; stage 2 works are not scheduled to commence until the new calendar year thus the budget timing is not reflective of when works will be undertaken.

·        Barnard Park East Foreshore Car Parking $134K; Tender has been awarded with works now underway.

·        Dunsborough Chieftain Crescent Carpark Extension $240K budget - contract awarded with anticipated expenditure of approx. $120K - placed on hold due to ongoing consultation.


 

Various

Footpaths & Cycleways

405,229

662,450

257,221

38.8%

13,718

57% of the YTD variance valued at $146K is associated with the Buayanup Drain Shared path project that has now been completed. Not all the budget will be expended as the value of the project was reduced towards the end of last financial year, however the amount carried over was not adjusted based on the reduced estimate. This variance will remain unless the budget is reduced formally via a budget amendment.

46% of the YTD variance valued at $118K is associated with path works at the Barnard East Development that is now underway and works at the Busselton Foreshore. This variance decreased from the prior period.        

The majority of other footpath and cycleway projects are scheduled for construction between the months of November to March.

Parks, Gardens & Reserves

1,976,642

5,052,168

3,075,526

60.9%

928,817

Various

Busselton Jetty - Capital Expenditure

20,126

272,524

252,398

92.6%

130,106

Major Maintenance works are scheduled to take place on the Jetty between late October through to March, when sea conditions are most conducive. The timing of major works on the Jetty can be quite variable based on the nature of tasks planned to be undertaken, the weather and working around the peak tourist seasons.

Various

Coastal & Boating

43,557

455,000

411,443

90.4%

415,000

Planning and procurement for Coastal related works continue to progress. The majority of works will commence in the new calendar year.

Various

Waste Services

52,722

540,000

487,278

90.2%

45,481

The majority of this variance is associated with budgets that were carried over from the previous year. 51% of the variance representing $250K is associated with Stage 1 Busselton Landfill Post-closure Capping, Rehab & Remediation works that are not as yet planned to go ahead this financial year. $82K of the YTD variance is with respect to works on a Depot Washdown Facility Upgrade that remains in the planning phase.

Various

Townscape & Vasse River

8,690

36,223

27,533

76.0%

(2,605)

No works of any significance associated with projects within this category have yet to commence. The YTD variance is considered minor in comparison to the $1.779M on works that are on budget.

Various

Other P&G Infrastructure

1,851,546

3,748,421

1,896,874

50.6%

340,836

68% of this significant YTD variance to budget valued at a combined $1.288M is associated with the carried over Barnard Park East Foreshore Development and the Dunsborough Lakes Sporting Precinct project including the Non-Potable Water Network.

Various

Regional Airport & Industrial Park Infrastructure

(52,967)

130,051

183,018

140.7%

159,844

This line is in credit doe to an incorrect cost re-allocation amendment that was processed twice in the amount of $115K (will be corrected in November) – YTD actual should in fact be $63K, which is made up of four separate account strings all part of the Airport development project. Some are completed (underspent) and others may not be spent until the end of the FY depending on timing of the works.

 

7.      Proceeds From Sale of Assets  

YTD there have been no proceeds from sale of assets recorded against the YTD budget of $146K. This is due to the continuing delays in delivery of acquisitions, and the associated transfer to auction of the vehicles being replaced. 


 

8.      Transfer to Restricted Assets  

There is a YTD variance in transfers to Restricted Assets of $4.7M as there is no budget for this item.

 

At the time of budgeting it is not possible to predict what grants will be received in what timeframe, nor when they will be spent and hence potentially transferred to Restricted Assets (or unspent portions thereof). The following grants, totaling $3.6M, have been received and transferred to Restricted Assets for which there was no budgeted transfer:

·      $44K for the Causeway Road Shared Path Project from the Department of Transport;

·      $2.25M for various roads projects from Main Roads, State Blackspot Fund, the Regional Roads Program and the Road Safety Innovation Fund;

·      $80K for the Dunsborough youth space project from the Department of Primary Industries and Regional Development;

·      $54K from Lotterywest for the Strengthening & Adapting Organisations program;

·      $526K from DFES for the Mitigation Activity Fund and shared costs of the Emergency Services Manager;

·      $30K from the Federal Government Community Grants Hub for Community Child Care Sustainability programs;

·      $11K from the South West Catchment Council - National Landcare Program for the planting of 4,000 seedlings;

·      $20K from Australia’s South West to fund an aviation research report for the Recovery for Regional Tourism Project Control Group;

·      $100K from the Department of Primary Industries & Regional Development for the expansion of the CCTV network;

·      $20K from Rio Tinto for Youth Development Services;

·      $4.9K from the Busselton Senior Citizens to go towards the expansion project;

·      $137K from the Department of Industry, Science, Energy and Resources for improvements to safety and accessibility at the airport; and

·      $100K from the Southwest Development Corporation do develop a training and marketing campaign to build a pool of skilled hospitality workers in the region.

 

Developer contributions, deposits and bonds are inherently hard to predict and budget for. An annual amount of $22K was budgeted for later in the year, however $1.1M has been received YTD, with $260K for road works bonds and $409K for caravan park deposits.

 

9.      Transfer from Restricted Assets

YTD there has been $1.7M transferred from Restricted Assets into the Municipal Account. This was mainly attributable to $500K of Bushfire Mitigation Activity funds that did not need to be restricted, and $565K of various roadworks grant & bond funding that has been utilised.

 


 

Investment Report

Pursuant to the Council’s Investment Policy, a report is to be provided to the Council on a monthly basis, detailing the investment portfolio in terms of performance and counterparty percentage exposure of total portfolio. The report is also to provide details of investment income earned against budget, whilst confirming compliance of the portfolio with legislative and policy limits.

 

As at 31 October 2021, the value of the City’s invested funds remained at $94.4M, unchanged from $94.4M as at 30 September 2021

 

The balance of the 11am account (an intermediary account which offers immediate access to the funds compared to the term deposits and a higher rate of return compared to the cheque account) remains at $6.5M.

 

During the month of October two term deposits totalling the amount of $4.5M matured. These were renewed for a further 197 days at 0.23% on average.

 

The official cash rate remains steady for the month of October at 0.10%.  This will continue to have an impact on the City’s interest earnings for the foreseeable future.

 

Borrowings Update

During the month there were no new loans entered into or drawn down.  The attached Loan Schedule outlines the status of all existing loans as at October YTD.

 

Chief Executive Officer – Corporate Credit Card

Details of transactions made on the Chief Executive Officer’s corporate credit card during October 2021 are provided below to ensure there is appropriate oversight and awareness.

 

Date

Payee

Description

$ Amount

29/10/21

BUSINESS EXCELLENCE AWARDS 2021

1 TICKET – G. HENLEY

$187.00

 

 

TOTAL

$187.00

 

Donations & Contributions Received

During October, a mobile site office valued at $30K was donated to the City from the developers of the new Origin Markets, upon completion of said development. This is to be used as part of the construction of the upgraded Dunsborough Youth Services space next to the Naturaliste Community Centre in Dunsborough.

 

Statutory Environment

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

Relevant Plans and Policies

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

Financial Implications

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

Stakeholder Consultation

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

Risk Assessment

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

Options

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

CONCLUSION

As at 31 October 2021, the City’s net current position stands at $41.2M. The City’s financial performance is considered satisfactory, and cash reserves remain strong.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.  


Council

139

8 December 2021

12.4

Attachment a

Loan Schedule - October 2021

 


Council

150

8 December 2021

12.4

Attachment b

Financial Activity Statement - October 2021

 













Council

152

8 December 2021

12.4

Attachment c

Investment Report - October 2021

 


Council                                                                                      156                                                          8 December 2021

12.5           Finance Committee - 24/11/2021 - SELF SUPPORTING LOAN APPLICATION - GEOGRAPHE BAY YACHT CLUB INC.

STRATEGIC THEME

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

STRATEGIC PRIORITY

2.3 Provide well planned sport and recreation facilities to support healthy and active lifestyles.

SUBJECT INDEX

Self Supporting Loans

BUSINESS UNIT

Recreation and Community Development

REPORTING OFFICER

Senior Sport and Recreation Project Officer - Brendan McNally

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   Geographe Bay Yacht Club Strategic Plan 2022-26

 

This item was considered by the Finance Committee at its meeting on 24/11/2021, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council:

1.         Approve a self-supporting loan to the Geographe Bay Yacht Club Inc., for the purposes of purchasing a new fleet of Pacer sail training dinghies to complement the Discover Sailing program, through the Western Australian Treasury Corporation for the amount of $50,000 for a term of up to ten (10) years; and

2.         Authorises the CEO to enter into a loan repayment agreement with the Geographe Bay Yacht Club Inc. where:

(a)       The Geographe Bay Yacht Club Inc. acknowledges it is responsible for reimbursement to the City of Busselton of full costs associated with the loan; and

(b)       The loan repayment calculations are on the basis of the prevailing Western Australian Treasury Corporation lending rate including Government Guarantee Fee at the time of actual funding of the loan.

 

OFFICER RECOMMENDATION

That the Council:

1.         Approve a self-supporting loan to the Geographe Bay Yacht Club Inc., for the purposes of purchasing a new fleet of Pacer sail training dinghies to complement the Discover Sailing program, through the Western Australian Treasury Corporation for the amount of $50,000 for a term of up to ten (10) years; and

2.         Authorises the CEO to enter into a loan repayment agreement with the Geographe Bay Yacht Club Inc. where:

(a)       The Geographe Bay Yacht Club Inc. acknowledges it is responsible for reimbursement to the City of Busselton of full costs associated with the loan; and

(b)       The loan repayment calculations are on the basis of the prevailing Western Australian Treasury Corporation lending rate including Government Guarantee Fee at the time of actual funding of the loan.

 

EXECUTIVE SUMMARY

The Geographe Bay Yacht Club Inc. (the Club) has applied to the City of Busselton for a self-supporting loan of $50,000 for a term of 10 years, to purchase a fleet of Pacer sail training dinghies to add to the Club’s Discover Sailing program. The Discover Sailing program is the core national participation program that provides opportunities for people of all backgrounds, ages and abilities to start and continue sailing by developing skills, experience and confidence. Officers have been working closely with the Club, including through the development of a Strategic Plan, and can confirm that this is one of the Club’s key actions under the ‘Our Club Facilities’ key priority area.

 

BACKGROUND

In 2021, through the City’s club development program, the Club was engaged to work with the City to undertake a comprehensive strategic planning process. This was funded through a grant from the Department of Local Government, Sport and Cultural Industries’ Every Club Funding program.

 

As an outcome, the Geographe Bay Yacht Club Inc. Strategic Plan was developed (Attachment A) which identified five (5) key priority areas. In the priority area of ‘Our Club Facilities’ and ‘Support Sailing Pathways’, an action was to upgrade the existing facilities:

Outcome:            Maximise the use of the boating and recreation facilities; and

                                Maintain a suite of sailing training programs

Strategy:              Purchase new training boats to ensure ongoing quality training is provided to the community

Who:                     GBYC Committee

When:                  2021

Priority:                Very High

 

The Club has been using a fleet of six (6) 420 class dinghies, which are all over 30 years old and are too heavy and technical for participants who are learning to sail. These dinghies now require significant time and finances to keep them maintained, safe and sailable. This is severely limiting the sailing participation pathway once sailors graduate from the entry level “tackers” sailing yachts.

 

The Club’s preferred replacement is the Pacer training dinghy. The Pacer is a sturdy, low maintenance dinghy that is light enough for two people to lift, they are ideal for beginners and are suitable for all ages. Many clubs and sailing schools throughout Australia use Pacers as their training yachts. The addition of this fleet assists the Club in achieving one of its Strategic Plan outcomes of establishing a South West Sailing Centre of Excellence at the Club by 2025/26.

 

The Club currently has an active membership of 400 including 90 junior members and plays host to regattas and State level competitions throughout the sailing season.

 

OFFICER COMMENT

The City has assisted the Club in developing a Strategic Plan which attempts to clearly articulate strategies to grow the sport and forms part of the Club’s regular management committee meetings.

 

The Club has advised officers that its Strategic Plan has been endorsed by the committee and will soon be advertised to members. This is an important piece of the strategic planning cycle so members can understand the direction and key focus areas of the club.

 

The purchase of this fleet is considered to be of a high priority given it aligns with Sailing Australia’s participation pathway and ensuring there are less barriers to participate in sailing.

 


 

The project cost breakdown is:

Self-Supporting Loan:                        $50,000 (over 10 years)

Applicant cash:                                     $20,000

Total project:                                        $70,000

 

As part of the self-supporting loan application, the Club has provided a range of supporting documentation including:

·        Audited financial statements for the financial years ended 30 April 2020 and 30 April 2019.

·        Profit and Loss Report for the financial year ended 30 April 2021.

·        Cash Flow Forecast for 1 May 2021 to 30 April 2022.

·        Sail Training ‘Discover Sailing’ Business Case.

·        Geographe Bay Yacht Club Strategic Plan 2022-26.

 

City officers are also working with the club in current remediation works to the boat ramp and to establish a future annual fund contribution from the club for ongoing maintenance.

 

Statutory Environment

The City’s adopted 2020/21 budget has been compiled in accordance with section 6.2 of the Local Government Act 1995 and Part 3 of the Local Government (Financial Management) Regulations 1996.

 

Relevant Plans and Policies

The officer recommendation aligns to Council Policy ‘Loan Facilities’. This Policy is applicable in offering the Club a self-supporting loan.

 

Financial Implications

The City's 2021/2022 adopted budget includes a provision of $200,000 for the funding of self supporting loans to the community.  

 

The loan would be granted on the basis of the prevailing Western Australian Treasury Corporation (WATC) lending rate including Government Guarantee Fee at the time of actual funding of the loan and subject to WATC approval. The WATC have advised that as at 2 November 2021 the current borrowing rate for 10 years is 2.1274%. The Government Guarantee Fee is 0.7%.

 

All interest and principal repayments would be formally agreed to prior to release of any funding. The repayments of a $50,000 loan over 10 years would be approximately $5563 per annum plus the Government Guarantee fee of 0.7% on outstanding principal each year.

 

The Club has another self-supporting loan with the City, with a balance of $63,578 owing at 30/6/21, which is currently budgeted to have P&I repayments of $11,672 made in 21/22.  Review of the financial information provided by the club identifies some recent decline in finances.  The financial documentation supplied did not contain any future budget or cashflow forecast outlining how this would be addressed, noting however that the Club has recently developed its strategic plan and priorities.  When balanced against the non-financial benefits to the community of the proposal, and its capacity to grow the membership base (as proposed in the Club’s strategic plan), the club is deemed to pose a low risk of not be capable of meeting the additional repayment amount of $5,563 per annum ($463 per month).

 

Stakeholder Consultation

City officers have been consulting with the Club and the WATC throughout this process.

 

Risk Assessment

The supporting documents have been reviewed by Community and Recreation and Services Officers and in accordance with the City’s Risk Management Framework the proposal by the Club is considered to be low risk. Based on the information provided the Club should be able to meet the repayment obligations provided the Club maintains its current financial position.

 

Options

As an alternative to the proposed recommendation, the Council could chose to not approve the request from the Club or consider the following options:

1.         Agree to a different loan amount.

2.         Set different terms of the loan.

CONCLUSION

It is recommended that Council support the Club’s request for a self-supporting loan in order to further its strategic priorities as identified in its Strategic Plan.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Action will be taken immediately to implement the recommendations of the Council.


Council

157

8 December 2021

12.5

Attachment a

Geographe Bay Yacht Club Strategic Plan 2022-26

 


Council                                                                                      161                                                          8 December 2021

12.6           Finance Committee - 24/11/2021 - SELF SUPPORTING LOAN APPLICATION - MARGARET RIVER BUSSELTON TOURISM ASSOCIATION

STRATEGIC THEME

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

STRATEGIC PRIORITY

3.1 Work with key partners to facilitate the activation of our town centres, creating vibrant destinations and consumer choice.

SUBJECT INDEX

Margaret River Busselton Tourism Association

BUSINESS UNIT

Community and Commercial Services

REPORTING OFFICER

Director, Community and Commercial Services - Naomi Searle

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   Ancient Lands - Site Plan

Attachment b    Ancient Lands - Journey and Lookout

Attachment c    Ancient Lands - Pre Cave Experiences

Attachment d   Ancient Lands - Post Cave Experiences  

 

This item was considered by the Finance Committee at its meeting on 24/11/2021, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council:

1.         Approve a self-supporting loan to the Margaret River Busselton Tourism Association (MRBTA) for the Ancient Lands Discovery Park project at Ngilgi Cave, through the Western Australian Treasury Corporation for the amount of $1,250,000 for a term of up to ten years; and

2.         Authorises the CEO to enter into a Loan Repayment Agreement with MRBTA where:

(a)       MRBTA acknowledges it is responsible for reimbursement to the City of Busselton of full costs associated with the loan; and

(b)       The loan repayment calculations are on the basis of the prevailing Western Australian Treasury Corporation lending rate including Government Guarantee Fee at the time of actual funding of the loan.

 

OFFICER RECOMMENDATION

That the Council:

1.         Approve a self-supporting loan to the Margaret River Busselton Tourism Association (MRBTA) for the Ancient Lands Discovery Park project at Ngilgi Cave, through the Western Australian Treasury Corporation for the amount of $1,250,000 for a term of up to ten years; and

2.         Authorises the CEO to enter into a Loan Repayment Agreement with MRBTA where:

(a)       MRBTA acknowledges it is responsible for reimbursement to the City of Busselton of full costs associated with the loan; and

(b)       The loan repayment calculations are on the basis of the prevailing Western Australian Treasury Corporation lending rate including Government Guarantee Fee at the time of actual funding of the loan.

 

EXECUTIVE SUMMARY

Margaret River Busselton Tourism Association (MRBTA) has applied to the City of Busselton for a self-supporting loan of $1,250,000, for a term of ten years, for the Ancient Lands Discovery Park project at Ngilgi Cave (the Project).  Officers have been working with the Association, through the provision of support letters to seek external funding, and recommend that Council approve the provision a self-supporting loan to MRBTA.

 

BACKGROUND

In late 2020, MRBTA approached the Council with a proposal to develop the facilities at Ngilgi Cave, to create a more authentic and modern cultural tourism experience (see attached concept plans).  MRBTA advised that both Commonwealth and State Government funds would be sought for the Project, however they would need to fund the balance of the budget.  At the time, Councillors, through a briefing session informally indicated its in-principle support for the Project.

 

The overarching purpose of the Project is to provide a unique natural and cultural experience through the development of above ground visitor facilities, interpretive signage and pathways to mirror and complement the below ground experience at Ngilgi Cave. The Project will provide an authentic and expanded visitor experience, increase site and regional viability through increased marketing opportunities, visitor and community satisfaction, and result in increased visitation, spend, length of stay and employment in the region.  The Project also aims to value-add to the cultural experiences offered in the region through the creation of a unique Aboriginal tourism experience through a new meeting area for Aboriginal tours and products.

 

The primary capital works associated with the Project include:

·        Renovation and extension of existing visitor centre facility.

·        Removal of ageing and/or hazardous out-buildings.

·        Development of large roofed cultural meeting space.

·        Development of well-defined pathways between the visitor centre, carpark, above ground experiences and cave entrance.

·        Installation of interpretive signage and experiences within the facility and along pathways.

·        Development of ancillary infrastructure including seating, carparks, playground and fencing.

 

The Project is being developed in partnership with Koomal Dreaming (local Aboriginal tour operator) and the Undalup Association (Traditional Owners), as well as various other government and community stakeholders.

 

OFFICER COMMENT

This Project is considered strategic in nature as it builds on the more limited cultural tourism experiences the region has to offer.  Located at the top end of the Busselton Margaret River region, Ngilgi Cave is a very popular tourist destination.  The above ground infrastructure at Ngilgi Cave has been built in an ad-hoc fashion, with buildings constructed, added to, and usage changing as demand and visitation grew from the 1970s to the 1990s. 

 

The current infrastructure is now inadequate to service consumer demand or meet modern visitor expectations.  This is evidenced by the current trend of a 7.3% average annual decline in visitation between 2018 and 2021 and consistent poor online reviews for the above ground experience.

 

MRBTA operates a number of tourist attractions and understand the importance of offering quality tourism products.  The key drivers for this Project are broadly summarised as the following:

·        Declining visitor numbers based on degraded visitor experience.

·        Limited capacity for peak periods and special interest groups.

·        A disconnect between the above ground and below ground visitor experience.

·        No or very limited above ground interpretation.

·        No universal access at the site.

·        Limited activity of tourists that do not wish to engage with a below ground experience.

·        Existing pathways are difficult to navigate, lacking interest and not well defined.

·        Underdeveloped carpark and pathways, presenting tripping and slipping hazards.

·        Ageing and unattractive visitor interface facility and infrastructure.

·        Ablutions and other buildings are located directly above the cave and are ageing and present serious hazards.

·        Gap in quality cultural tourism experience offerings.

                                                      

The project cost breakdown is proposed as:

Self-Supporting Loan:                                        $1,250,000 (over 10 years)

Commonwealth Government funding:       $1,350,000

State Government funding:                            $      70,000

Applicant cash:                                                     $      80,000

Applicant In-kind:                                                $      90,000

Total project:                                                        $2,840,000

 

As part of the self-supporting loan application, MRBTA has provided a range of supporting documentation including:

·        Audited financial statements for the financial years ended 30 June 2020 and 2021.

·        Ancient Lands Discovery Park at Ngilgi Business Case dated February 2021.

·        Letters of support.

 

These supporting documents have been reviewed by City Officers and the proposal is overall considered to be sound. 

 

Statutory Environment

The City’s 2020/21 adopted budget has been compiled in accordance with section 6.2 of the Local Government Act 1995 and Part 3 of the Local Government (Financial Management) Regulations 1996.

 

Relevant Plans and Policies

The officer recommendation aligns to Council Policy ‘Loan Facilities’. This Policy is applicable in offering the MRBTA a self-supporting loan.

 


 

Financial Implications

MRBTA has been successful in securing $1,420,000 towards the Project; $1,350,000 through the Commonwealth Government’s Building Better Regions Fund (round 5), and $70,000 through the State Government’s Regional Economic Development Grant.  MRBTA is contributing $80,000 in cash and $90,000 in in-kind support towards the Project, and are seeking a self-supporting loan of $1,250,000 through the City to enable the project to proceed.

 

The City’s 2021/2022 adopted budget includes provision for this self-supporting loan of $1,250,000, to be expended subject to Council’s consideration and approval of this application.

 

The loan would be granted on the basis of the prevailing Western Australian Treasury Corporation (WATC) lending rate (including Government Guarantee Fee) at the time of actual funding of the loan and subject to WATC approval. The WATC have advised that as at 10 November 2021 the current borrowing rate for 10 years is 1.9872% plus an annual Government Guarantee Fee of 0.7%.

 

All interest and principal repayments would be formally agreed to prior to release of any funding. The repayments of a $1,250,000 loan over 10 years would be approximately $139,065 per annum plus the Government Guarantee fee of 0.7% on outstanding principal each year.  Based on the information provided MRBTA should be able to meet the repayment obligations.

 

Stakeholder Consultation

City officers have been consulting with the MRBTA and the WATC throughout this process.

 

Risk Assessment

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

 

Options

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

1.         Choose to not approve the request from MRBTA.

2.         Agree to a different loan amount.

3.         Set different terms of the loan.

 

CONCLUSION

Through the assessment of documents provided during the application process, officers are of the opinion that MRBTA is financially sound, has limited debt levels and sufficient income streams to ensure the repayment schedule is met.  Further, the business case projects additional revenue as a result of this Project, further adding to the Association’s net positive financial position.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Action will be taken immediately to implement the recommendations of the Council.

 

 


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8 December 2021

12.6

Attachment a

Ancient Lands - Site Plan

 









Council

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8 December 2021

12.6

Attachment b

Ancient Lands - Journey and Lookout

 









Council

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8 December 2021

12.6

Attachment c

Ancient Lands - Pre Cave Experiences

 













Council

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12.6

Attachment d

Ancient Lands - Post Cave Experiences

 








 


Council                                                                                      198                                                          8 December 2021

13.             Planning and Development Services Report

Nil


Council                                                                                      203                                                          8 December 2021

14.             Engineering and Work Services Report

14.1           RFT 19/21 DNSL SPORTS PRECINCT CARPARK & COURTS

STRATEGIC THEME

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

STRATEGIC PRIORITY

2.3 Provide well planned sport and recreation facilities to support healthy and active lifestyles.

SUBJECT INDEX

Tenders

BUSINESS UNIT

Major Projects and Facilities

REPORTING OFFICER

Major Projects - Contract Admin & Tech Officer - Natalie Walker

AUTHORISING OFFICER

Director, Engineering and Works Services - Oliver Darby

NATURE OF DECISION

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

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Confidential RFT 19/21 Tender Evaluation Report - DNSL Sports Precinct Carpark and Courts

Attachment b    Dunsborough Lakes Sports Precinct Layout Plan  

 

OFFICER RECOMMENDATION

That the Council:

1.         Endorses the outcome of the evaluation panel’s assessment of RFT 19/21 DNSL Sports Precinct Carpark & Courts, that the tender from PJ & NA Strahan Pty Ltd as trustee for the PJ & NA Strahan Family Trust trading as Busselton Bitumen Services and Civil (tendered price $1,263,317.58 exclusive of GST) be determined the most advantageous tender and the tender submitted by BCP Contractors Pty Ltd the second most advantageous tender.

2.         Delegate power and authority to the Chief Executive Officer to negotiate and final terms and conditions including variations in accordance with Regulation 20 of the Local Government (Functions and General) Regulations 1996.

3.         If, in the discretion of the CEO, agreement with PJ & NA Strahan Pty Ltd as trustee for the PJ & NA Strahan Family Trust trading as Busselton Bitumen Services and Civil cannot be reached pursuant to recommendation 2 above, then delegates power and authority to the CEO to negotiate and agree final terms and conditions including variations in accordance with Regulation 20 of the Local Government (Functions and General) Regulations 1996 with BCP Contractors Pty Ltd.

 

EXECUTIVE SUMMARY

The City of Busselton invited tenders under Request for Tender RFT 19/21 DNSL Sports Precinct Carpark & Courts (RFT 19/21) for a suitably experienced and qualified contractor to construct a carpark and multi-use courts for the Dunsborough Lakes Sports Precinct. 

 

This report summarises the submissions received, and recommends that Council endorse the outcome of the evaluation panel’s assessment and accept the tender from Busselton Bitumen Services and Civil.

 

BACKGROUND

Lot 40 Dunsborough Lakes Drive (formerly Lot 10 Commonage Road) is City-owned land purchased from the Water Corporation; zoned as special use and identified as open space for sport and recreation purposes within the Dunsborough sub-district. 

The Dunsborough Lakes Sports Precinct (the Precinct) is jointly funded by the City, the State Government’s Community Sporting and Recreational Facilities Fund and the Commonwealth Government’s Community Infrastructure. 

The Precinct will be accessible from the future school, located on the corner of Dunsborough Lakes Drive and Diamante Boulevard. The overall design allows for potential future expansion of the Precinct. 

Construction of the sports fields is currently underway and is anticipated to be completed by March 2022. The pavilion design is also currently in progress, with construction of the pavilion to commence in mid-2022. 

A brief scope of works for RFT 19/21 DNSL Sports Precinct Carpark and Courts is outlined as follows:

1)    Carpark / Access

a)         Demolition of existing kerb for carpark access

b)        Construction of drainage

c)         Construction of access and carpark, including  asphalt surfacing, line marking and signage

d)        Installation of electrical services and carpark lighting

e)        Hard landscaping, including concrete footpaths and bollards

f)         Soft landscaping, including rain garden and garden beds

 

2)    Courts

a)         Construction of drainage

b)        Construction of 4 x multi-use courts, including acrylic surfacing and line marking

c)         Installation of electrical services and court lighting  Undertake the required testing as per the Netball Australia National Facilities Policy – March 2016

d)        Supply and installation of netball / basketball posts

 

OFFICER COMMENT

RFT 19/21 was issued as a public tender on Friday 1 October 2021 and closed at 2pm on Tuesday 9 November 2021. The invitation to tender was advertised in ‘The West Australian’, the ‘Busselton Dunsborough Times’ and the City’s Public Notice Boards. 

 

The City received four compliant tender submissions from the following companies:

·        BCP Contractors Pty Ltd

·        Carbone Bros Pty Ltd

·        Industrial Roadpavers (WA) Pty Ltd; and

·        PJ & NA Strahan Pty Ltd T/A Busselton Bitumen Services and Civil.


 

Assessment Process

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

The tender assessment process included:

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

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

Criteria

Weighting

·    Price

50%

·    Relevant Experience

25%

·    Demonstrated Understanding

20%

·    Local Content

5%

 

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

 

Summary of Assessment

The evaluation panel’s assessed Busselton Bitumen Services and Civil as the highest ranked tenderer. 

Busselton Bitumen Services and Civil offered a competitive price and displayed appropriate previous experience in constructing multiple sports courts and civil projects of similar scope.  Furthermore they demonstrated a comprehensive understanding of the project requirements.  Busselton Bitumen Services and Civil demonstrated local community support, identifying work placements for the Busselton ACTIV Foundation and providing financial contributions to local sporting groups.  

 

Evaluation Panel Recommendation

Based on the evaluation panel’s assessment and overall ranking of the tenders, it is recommended as most advantageous to the City to accept the tender from Busselton Bitumen Services and Civil.

Busselton Bitumen Services and Civil demonstrated they have:

·        a good range of relevant experience and ability to deliver the scope of works;

·        a comprehensive understanding of the project requirements and ability to complete the works within the desired timeframe;

·        demonstrated support local charities and sporting groups; and

·        in this instance, also provided the lowest tender price. 

 

Statutory Environment

In accordance with section 3.57 of the Local Government Act 1995, a local government is required to invite tenders before it enters into a contract of a prescribed kind under which another person is to supply goods and services.

 

Part 4 of the Local Government (Functions and General) Regulations 1996:

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

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

The contract value is greater than $500,000. In accordance with section 5.43(b) of the Local Government Act 1995 (the Act), read with Delegation 3J, the tender is therefore required to go before the Council.

 

Relevant Plans and Policies

The Dunsborough Lakes Sports Precinct is identified in the City of Busselton Sports Facilities Analysis and Future Requirements (KA3 Action Plan Priority 1) and the Long Term Financial Plan 2021 - 2031.

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

 

Financial Implications

The estimated total value of the requirements for RFT 19/21 over the full contract term is $1,263,317.58 excluding GST. 

 

RFT 19/21 forms part of the 2021/22 Dunsborough Lakes Sports Precinct Budget, and will be funded from the carpark and courts allocation of $1,450,000 excluding GST.

 

Potential savings from this project may need to be reallocated to the pavilion as preliminary cost estimates of the concept design exceed budget expectations, due to the current market conditions.

 

Stakeholder Consultation

The City has been consulting with the respective sporting groups to develop the design of the Precinct.  The sporting groups consulted include:

·        Dunsborough Cricket Club

·        Dunsborough Towners Football Club (Senior Soccer)

·        Dunsborough Junior Soccer Club

·        Dunsborough Coasters Netball

·        Dunsborough Basketball Club

·        Dunsborough Football Club

 


 

Risk Assessment

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

Options

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

1.         Award the tender to an alternative tenderer. In the view of the officers, this could result in the tender being awarded to a tenderer that is not most advantageous to the City.

2.         Not award the tender. This would mean re-advertising the tender, resulting in significant delays and impacting on the timing of the other sports precinct components.  This may have a reputational risk if the sports fields are not ready for the 2023 sporting season.

The abovementioned options are not recommended. 

CONCLUSION

It is recommended that Council accept the from Busselton Bitumen Services and Civil as the most advantageous to the City, subject to minor variations to be negotiated by the CEO, not exceeding the overall project budget. 

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The selection of the Successful Tenderer can be made immediately after the Council has endorsed the office recommendation, subject to successful negotiation in accordance with the officer recommendation. Should Council adopt the officer recommendation, it is anticipated that the contract for construction will commence in January 2022.   


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8 December 2021

14.1

Attachment b

Dunsborough Lakes Sports Precinct Layout Plan

 


Council                                                                                      208                                                          8 December 2021

14.2           MEELUP REGIONAL PARK COMMITTEE - APPOINTMENT OF COMMUNITY MEMBERS

STRATEGIC THEME

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

STRATEGIC PRIORITY

1.2 Work with the community to manage and enhance natural areas and reserves and their biodiversity.

SUBJECT INDEX

Council and Committee Appointment

BUSINESS UNIT

Environmental Services

REPORTING OFFICER

Meelup / Environmental Management Officer - Kay Lehman

AUTHORISING OFFICER

Director, Engineering and Works Services - Oliver Darby

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 Amended Terms of Reference - Meelup Regional Park Committee  

 

OFFICER RECOMMENDATION

That the Council:

1.         Appoints the following persons as community members of the Meelup Regional Park Committee:

·        Dr. Bob Jarvis

·        Mrs Shirley Fisher

·        Mr Albert Haak

·        Mr Tony Smurthwaite

·        Mrs Kerry Grist

·        Mr Lyndon Miles

·        Ms Kelly Lamp

·        Ms Danae Plowman

·        Ms Kerry Stewart

 

2.         Endorse the amended Terms of Reference (Attachment A) for the Meelup Regional Park Committee to change the maximum number of community members from eight to nine members, noting the high quality of applicants for community membership and the benefits of having a diverse range of skills and experience.

 

EXECUTIVE SUMMARY

The purpose of this report is to seek Council’s endorsement of the appointment of the community members to the Meelup Regional Park Committee (the Committee).

 

BACKGROUND

On 27 August 2019, Council adopted revised governance arrangements for the City’s management of Meelup Regional Park, including revised Terms of Reference (ToR) for the Committee and the appointment process for community members.

 

Membership of the Committee is currently comprised of three Councillors (including one deputy member) and between six and eight community members, with up to three of these members to be representatives of the Friends of Meelup Regional Park Incorporated Association.

 

In accordance with the ToR, membership of the Committee shall, unless determined otherwise, cease on the day of each ordinary Council election. The membership of the committee therefore ceased at the last Council election day, 16 October 2021.

 

At the Special Council Meeting on 18 October 2021, the following Councillors were appointed to the Committee:

·        Councillor Sue Riccelli

·        Councillor Kate Cox

·        Councillor Mikayla Love (deputy member)

 

Council is now required to appoint the community members to the Committee.

 

OFFICER COMMENT

Clause 3.3 of the ToR states that “Council shall appoint between six and eight community members, with up to three of these members to be representatives of the Friends of Meelup Park Incorporated Association”.

 

An expression of interest (EOI) for new member positions on the Committee was advertised in the ‘Busselton Dunsborough Times’ newspaper on 5 November and 12 November 2021 and on the City’s Facebook site. EOIs for continuing involvement and reappointment to the Committee as a member were sought and received from five incumbent members, with two of the previous members deciding not to nominate. 

 

The following previous members of the Committee, including one member of the Friends of Meelup Park, expressed an interest in continuing their involvement on the Committee:

 

§  Dr. Bob Jarvis

§  Mrs Shirley Fisher

§  Mr Albert Haak

§  Mr Tony Smurthwaite

§  Ms Kerry Grist (Chair, Friends of Meelup Inc.)

 

The appointment of these five previous Committee members will ensure continuity of the current work and projects that are being undertaken within Meelup National Park, and therefore officers recommend their reappointment. Additionally, the following four nominees responded to the EOI to apply for community membership of the Committee:

               

§  Mr Lyndon Miles

§  Ms Kelly Lamp

§  Ms Danae Plowman

§  Ms Kerry Stewart

 

The applicants from the EOI were interviewed by the Mayor, the City’s Meelup Environment Officer and Dr Bob Jarvis. All of the applicants were deemed to be suitable for membership of the Committee. Consequently, there were more nominees than member positions available for the Committee under the ToR.


 

Given the suitability of the applicants, and the benefits from having diverse and suitably experienced members, it is proposed that the Council endorses the appointment of all nine applicants for community membership. It is proposed that, if Council is supportive of this, the ToR be amended to increase the maximum number of community members to nine (see Attachment A).

 

Statutory Environment

The Meelup Regional Park Committee is created pursuant to the Local Government Act 1995 (the Act), specifically via a resolution of the Council pursuant to sections 5.8, 5.9(2) (c) and 5.17(1) (c) of the Act.

 

Sections 5.9(2)(c) and 5.9(2)(d) of the Act set out that, inter alia, a committee may comprise “council members (i.e. Councillors), employees and other persons; or Council members and other persons”.

 

Relevant Plans and Policies

Meelup Regional Park is Reserve 21629, and is Crown Land over which the City has a management order. There is a formal management plan for the Park, which has been adopted by both the Council and the Minister for Lands, pursuant to section 49 of the Land Administration Act 1997. Where a management plan has been adopted pursuant to section 49, the management body is required to manage the land in accordance with the plan.

 

On 27 August 2019, Council adopted Council Policy ‘Governance of Meelup Regional Park’ to outline the governance arrangements for Meelup Regional Park, ensuring that the Park is managed in an effective and inclusive manner consistent with the Meelup Regional Park Management Plan.

 

Financial Implications

There are no financial implications associated with the officer recommendation.

 

Stakeholder Consultation

No external stakeholder consultation, outside of the EOI process, 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:

 

1.         Review the nominations and appointments to the Committee.

2.         Appoint only eight members to the Committee in accordance with the current Terms of Reference and not endorse the proposed amended Terms of Reference.

 

CONCLUSION

In order to continue the valuable contribution to the City made by the Meelup Regional Park Committee, it is considered that community members with an interest in a continuing involvement plus the additional four nominees be appointed to allow the work of the Committee to continue.  It is also recommended that the Terms of Reference be amended to increase community membership to nine members.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Any decision of the Council in relation to this matter would be effective immediately.


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8 December 2021

14.2

Attachment a

Proposed Amended Terms of Reference - Meelup Regional Park Committee

 



 


Council                                                                                      217                                                          8 December 2021

15.             Community and Commercial Services Report

15.1           EXPRESSION OF INTEREST -  RESERVE 46187 LOT 448 MARINE TERRACE; OLD TENNIS CLUB BUILDING

STRATEGIC THEME

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

STRATEGIC PRIORITY

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

SUBJECT INDEX

Economic and Business Development

BUSINESS UNIT

Commercial Services

REPORTING OFFICER

Manager Economic and Business Development Services - Jennifer May

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

NATURE OF DECISION

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

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Reserve 46187 Lot 488 Marine Terrace - Old Tennis Club Location

Attachment b    Published Under Separate Cover  Confidential Geographe Bay Brewing Co EOI Submission - Part 1

Attachment c    Published Under Separate Cover  Confidential Geographe Bay Brewing Co EOI Submission - Part 2

Attachment d   Published Under Separate Cover  Confidential Kent Street Bakery EOI Submission  

 

OFFICER RECOMMENDATION

That the Council:

1.         Acknowledges the receipt of two responses to a publicly advertised expression of interest process seeking a commercial operator to lease Reserve 46187 – Lot 448 Marine Terrace to operate a business venture consistent with the permissible building uses.

2.         Nominates Geographe Bay Brewing Co. as the ‘preferred proponent’ for a period of 6 months, as potential future lessee of Reserve 46187 – Lot 448 Marine Terrace, Busselton.

3.         Authorises the CEO to continue negotiations with the Department of Planning, Lands and Heritage to change the purpose of Lot 448 on Reserve 46187 and agree the terms of head lease with the State Government.

4.         Subject to the outcome of recommendation 3 above, authorises the CEO to enter into negotiations for the terms and conditions of a sublease with Geographe Bay Brewing Co, including ground rent, lease term, asset management, potential landscaping proposals and any legal considerations to operate a commercial venture and return to Council with recommendations in relation to the heads of terms.

 

EXECUTIVE SUMMARY

This report provides an update on the expression of interest process to attract a commercial operator for Reserve 46187, Lot 448 Marine Terrace, Busselton (Old Busselton Tennis Club building), to operate a restaurant/café, reception centre, shop, tavern, small bar, exhibition centre, amusement parlour or cinema /theatre subject to approval of the Department of Planning, Lands and Heritage (DPLH).

This report recommends:

·        that Council acknowledge receipt of two EOI submissions and nominates Geographe Bay Brewing Co. as the preferred proponent; and

·        that the CEO is given authority  to continue to negotiate Reserve purpose changes and the grant of a head lease and sublease with DPLH.

 

BACKGROUND

The former Busselton Tennis Club building was constructed in 1999 and remained as the Busselton Tennis Club clubrooms until 2019 when the Tennis Club relocated to its new premises at Barnard Park East. 

 

The land on which the Tennis Club building is located is Crown land Reserve 46187 - Lot 488 Marine Terrace as shown on Attachment A (Premises). Up until recently, the Reserve purpose was “Tennis Club”.  The Premises are in an ideal location between the Busselton Foreshore and the CBD and is also the closest building situated to the Cultural Precinct at the northern end of Queen Street. The Premises are currently the subject of a licence granted by the City to the Bunbury Regional College (BRC) for educational purposes which expires on 31 December 2021.

 

Whilst the use of the Premises by the BRC has been a worthwhile and beneficial use, there is potential to attract a commercial operator to activate the Marine Terrace Precinct and offer a new and exciting business offering to complement the tourism and businesses on the Busselton Foreshore. To facilitate this, Council adopted (C2011/144) a revised Busselton Foreshore Structure Plan in 2020 that proposed a new ‘Marine Terrace Precinct’ focused on the former Busselton Tennis Club building and allowing for the following uses in addition to the current educational use:

 

·        Restaurant/Café;

·        Shop;

·        Tavern;

·        Small Bar;

·        Exhibition Centre;

·        Amusement Parlour; and

·        Cinema/Theatre.

 

The proposed land uses would facilitate future pedestrian connectivity between attractions elsewhere within the Foreshore Precinct as well as those in the Cultural Precinct and the Busselton CBD. The revised Busselton Foreshore Structure Plan was approved by the Western Australian Planning Commission (WAPC) in July 2021 to include the above uses.  It is also anticipated that the rent received through the Premises will be directed to the Busselton Jetty Maintenance Reserve to assist in funding the asset maintenance and replacement requirements.

 

As the licence granted to BRCC expires on 31 December 2021, officers advertised an expression of interest (EOI) for business owners to establish and operate a commercial offering within the Premises. The EOI called for proposals consistent with the permissible building uses subject to agreeing a change of Reserve purpose with the DPLH.

 


 

The EOI called for proposals that would achieve the following City objectives:

·        Provide a diverse, attractive range of community and commercial offerings for residents and tourists to the City of Busselton;

·        Activate the Busselton Foreshore and CBD through a range of trading hours;

·        Attract a suitably qualified tenant that could show previous relevant business experience;

·        Achieve community valued outcomes for use of City of Busselton owned/managed assets; and

·        Supports local enterprise, business investment and employment growth.

Two EOI submissions were received by the closing date from Geographe Bay Brewing Co. and Kent Street Bakery.

 

OFFICER COMMENT

A City evaluation panel, including officers from Economic and Business Development and Property and Leasing areas, reviewed both submissions on the basis of the below criteria:

 

City Objective

Assessment Criteria

Weighting

Provide a diverse, attractive range of community and commercial offerings for residents and tourists to the City of Busselton

-      Is the business offering new and/or unique to the Busselton Foreshore

-      Does the business offering directly compete with other business offerings in the Busselton town centre

-      Does the business offering enhance the Busselton CBD and Foreshore experience for residents and visitors

25%

Attract a suitably qualified tenant that can show previous relevant experience

-      Business model is financially viable

-      Proponent can show access to capital if required for any building improvements

-      Direct business experience in owning / managing similar business ventures

-      Access / ability to adequately staff the business offering

-      Ability/experience to market and attract customers

25%

Activate the Busselton Foreshore and town centre through a range of trading hours

-      Offers trading seven days a week with an extensive range of daily trading hours relevant to the business offering

-      Any seasonal influences on trading hours

-     Timelines for business operations commencing

20%

Achieve community valued outcomes for use of City of Busselton owned and/or managed assets

-      Attracts residents and visitors to the Busselton foreshore

-      Creative / innovative use of the building area

-      Business brand / building presentation and fit out aligns with Busselton Foreshore development guidelines

-      Proposal is compliant with City of Busselton Town Planning Scheme

15%


 

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

-      Does the proposal create new or increase existing employment opportunities

-      Will the business offering attract visitors to Busselton

-     Does the business offering utilise or support other local businesses / industries within the City of Busselton

15%

Total

 

100%

 

The consensus of the evaluation panel was that the EOI received from Geographe Bay Brewing Co. (GBB) was the preferred submission, with their proposal reactivating the Premises with a premium, unique chocolate production and retail offering. Their proposal is to provide “an immersive chocolate experience for guests, showcasing the production process, offering tastings, classes, workshops and events”. The proposal incorporates a refurbishment of the building and includes a café offering locally sourced ice cream and house made café products. GBB’s submission was very comprehensive and detailed, addressing all the EOI criteria (Confidential Attachments B and C).

 

The Kent Street Bakery submission was brief and proposed that the Premises be utilised for their existing business located in the town centre. While the Kent Street Bakery submission acknowledged that additional information could be prepared and submitted, it was considered by the panel that their proposal did not meet all of the EOI criteria, in particular the first objective to provide a new and/or unique business offering to the Busselton foreshore that would not compete with other business offerings in the Busselton town centre and enhance the Busselton CBD and foreshore experience for residents and visitors (Confidential Attachment D).

 

Statutory Environment

Land Administration Act 1997 (“LAA”)

The Premises are located on Class C Crown Reserve 46187 – Lot 488 Marine Terrace (Volume LR3111 Folio 999). The current Reserve purpose is “Recreation and Community”, prior to which it was “Tennis Club”.  The City have management of the Reserve with power to lease for any period not exceeding 21 years subject to the prior approval of the Minister for Lands.

 

Following the departure of the Tennis Club Association from the Premises in 2019, officers have been in discussion with the DPLH concerning its future purpose.  It was always anticipated that this building would be commercially developed to enhance the vibrancy of the Foreshore while generating additional revenue to fund the Busselton Jetty maintenance and replacement requirements.  The City have for some time lobbied State Government for a change to the Reserve purpose that would facilitate greater activation of the area, and increase connectivity between the CBD and the Busselton Foreshore.

 

When approaching the DPLH for approval under section 18 of the LAA for consent to enter into the Licence with BRC, Officers were informed that this would only be granted on condition that the City embark on the process of a change to the Structure Plan to accommodate wider (commercial) use.

 

Officers were of the understanding that once the Structure Plan change had been implemented, DPLH would give consideration to a change to the Reserve purpose that would allow commercial use. Following the advertising and public consultation required in connection with the Structure Plan change, officers notified DPLH of the successful implementation of the change and the nature of the permitted use of the new Tennis Club Precinct.

 


 

DPLH responded by changing the Reserve purpose to “Community and Recreation” with power to lease for up to 21 years subject to approval of the Minister for Lands. 

 

Preliminary discussions with DPLH have indicated that if the City wish to enter into a commercial arrangement at the Premises, this must be on the basis of a head lease between the State and the City with power to sublease to a commercial operator. The head lease would require the City to pay between 20%-50% of the market rent for the Premises on a commercial footing and to pay the revenue generated from any sublease into the Busselton Jetty Maintenance Reserve. 

 

The percentage of market rent payable under the head lease will be determined by the community benefit of the proposed future use by a commercial operator.  DPLH requested that the City submit a business case for their determination.  In summary, the business case proposes payment of a nominal rent to the State under the head lease (whilst the State have indicated that a commercial use would attract a higher rent, officers have nevertheless requested that the proposal be considered on the same basis as the other commercial offerings on the Busselton Foreshore):

·        Sublease rental income to be paid into the Busselton Jetty Maintenance Reserve;

·        A rent free period is allowed while the building undergoes any refurbishment; rent is payable on commencement of opening; and

·        Lease term is 20 years plus 10 years.  

Local Government Act 1995 (“LGA”)

The grant of a sublease to a commercial operator constitutes a disposal requiring advertising in accordance with section 3.58 of the LGA.  Once the terms of the sublease have been negotiated, local public notice of the sublessee, consideration and lease term will be given inviting submissions to be made within a certain period.  Council are required to consider any submissions received within that time frame.  

 

Relevant Plans and Policies

The officer recommendation aligns with the Busselton Foreshore Master Plan and Structure Pan.

 

Busselton Foreshore Master Plan

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

 

The proposed lease and repurposing of the Premises aligns with the recent change to the Structure Plan endorsed by Council and the WAPC earlier this year.

 

Financial Implications

There are no direct financial implications associated with the officer recommendation at this time. However, should approvals be granted from DPLH for the City to enter into a head lease with the State Government and sublease with the proponent, there will be future financial implications. The head lease will incur a rental payment to the State and all sublease revenue from the proponent is to be transferred into the Busselton Jetty Maintenance Reserve. Officers will seek up to date rental market valuations for the Premises prior to finalising any head lease/sublease terms and conditions. 

 

Stakeholder Consultation

Officers consulted with the existing lessee, Bunbury Regional College in regards to the advertising of the EOI and site inspections.

 

Consultation with the DPLH in relation to the change of Reserve purpose and the grant of a head lease and sublease are ongoing as outlined in this report. 

 

The EOI was advertised from 22 September 2021 to 22 October 2021, with two site inspections available on 29 September and 7 October. The EOI was advertised in the ‘Busselton Dunsborough Times’ on 1 October and 8 October 2021, City of Busselton social media posts 23 September, 25 September and 19 October and published on the City of Busselton’s Public Notices webpage from the 21 September through to 22 October 2021.

 

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 select Geographe Bay Brewing Co. as the preferred proponent and select Kent Street Bakery as the preferred proponent.

2.         Not select either Geographe Bay Brewing Co. or Kent Street Bakery and propose officers re-advertise the EOI for commercial and/or community use.

3.         Propose an alternative use for the Old Tennis Club Building.

CONCLUSION

The repurposing of the Premises presents a unique opportunity for commercial and community operators to activate and complement the existing businesses on the Busselton Foreshore. An EOI was advertised locally for four weeks seeking proposals from commercial, business operators to lease the Premises subject to support from the DPLH to change the Reserve purpose and enter into a head lease with the City. Two EOI proposals were received, with City Officers recommending that Geographe Bay Brewing Co be nominated the preferred proponent having submitted a detailed and comprehensive proposal to operate a multifaceted business offering centred on premium chocolate production and retail. Officers will continue to work with the DPLH to secure the necessary change to the Reserve purpose and the terms and conditions of the proposed tenure.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Following Council’s endorsement of the officer recommendation, officers will confirm in writing Geographe Bay Brewing Co’s preferred proponent status and progress sublease negotiations. Officers have already approached DPLH and will continue to finalise approvals and head lease terms and conditions and submit a business case if required. It is hoped that head lease and sublease negotiations could be finalised in early 2022 subject to progression of negotiations with DPLH.     

 


Council

218

8 December 2021

15.1

Attachment a

Reserve 46187 Lot 488 Marine Terrace - Old Tennis Club Location

 

 


Council                                                                                      226                                                          8 December 2021

15.2           MARKETING AND EVENTS REFERENCE GROUP OUTCOMES

STRATEGIC THEME

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

STRATEGIC PRIORITY

3.3 Continue to promote the District as the destination of choice for events and unique tourism experiences.

SUBJECT INDEX

MERG Outcomes

BUSINESS UNIT

Commercial Services

REPORTING OFFICER

Events Coordinator - Peta Tuck

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Nil

 

OFFICER RECOMMENDATION

That the Council:

1.         Endorses funding allocations towards the following events, to be funded from the 2021/22 – 2023/24 Events Budgets:

Event

Funding Allocation

Yalambi Spring Jumping Classic

2021/22 $3,000

2022/23 $3,000

2023/24 $3,000

DDPA Community Civic Events

2021/22 $5,000

2022/23 $5,000

2023/24 $5,000

(+ up to $2,000 in kind per year)

Trans Cape SwimRun

2021/22 $3,500

2022/23 $3,500

2023/24 $3,500

Margaret River Readers & Writers Festival

2021/22 $7,500

Busselton Tennis Club – March Open Tournament

2021/22 $3,500

2022/23 $3,500

2023/24 $3,500

Busselton Tennis Club – Junior Open Tournament

2021/22 $2,000

2022/23 $2,000

2023/24 $2,000

Yallingup Shred Fest

2021/22 $7,000

Busselton Mardi Gras Fair Day

2021/22 $5,000

2022/23 $5,000

2023/24 $5,000

(+ up to $2,500 in kind per year)

Busselton Hockey Association – Pride Cup

2021/22 $2,000

TOTALS

2021/22 $38,500

2022/23 $22,000

2023/24 $22,000

(+ up to $4,500 in kind per year)

 

2.         Endorses funding allocations towards the following events, to be funded from the 2022/23 – 2024/25 Events Budgets:

 

Event

Funding Allocation

CinefestOZ

2022/23 $120,000

2023/24 $120,000

2024/25 $120,000

Cabin Fever Festival

2022/23 $40,000

2023/24 $40,000

2024/25 $40,000

TOTALS

2022/23 $160,000

2023/24 $160,000

2024/25 $160,000

 

EXECUTIVE SUMMARY

A meeting of the Marketing and Events Reference Group (MERG) was held on Wednesday 24 November 2021. This report presents the recommendations from this meeting.

 

BACKGROUND

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

 

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

 

The 2021/22 budget for marketing and events totals $1,196,700. The proposed breakdown of this budget is as follows:

·               $924,900 – Events

·               $231,800 – Marketing and economic development initiatives

·               $40,000 – City led events

This excludes budget allocations for Leavers Week, administration, and events staffing.

 

A MERG meeting was held on Wednesday 24 November 2021, with the following key matters presented:

·        Update on events held since the last meeting on 01 September 2021 and upcoming major events.

·        Consideration of funding applications for the 2021/22 – 2024/25 events and marketing budgets.


 

OFFICER COMMENT

Supporting the development and attraction of new events throughout the year, the City’s Events Sponsorship Programme promotes the City of Busselton as an attractive event tourism destination.  At the MERG meeting held on 24 November 2021, a range of requests for events funding were considered as outlined below:

 

Requests for Funding – 2021/22 Events Budget

Nine (9) applications were received requesting funding, totalling $49,320.

Applicants that have held their event for two or more years and been funded by the City, have demonstrated that they meet requested KPI’s, and have indicated that they intend to continue holding the event in future years, will be offered a multi-year agreement. This allows them to plan effectively for future events and reduces administration for both the event organiser and City staff. They will be still required to meet KPI’s and provide an annual post event report before any further funding is released in future years. 

 

Yalambi Spring Jumping Classic

Yalambi Farm hosts two premier show jumping events per year, in April and November. These events attract competitors from around the state and interstate (when borders are open), with up to 1,000 competitors and spectators attending each event. Most competitors tend to stay on site, with a designated camping area to facilitate this. Due to this reason, it is not recommended to award the full requested funding amount. The proposed use of funding is for live streaming of the event, and prize money. MERG recommendation is to offer a 3 year multi-year agreement for $3,000 per year.

 

Dunsborough & Districts Progress Association (DDPA) civic events

DDPA plan and implement three community ‘civic’ events each year – Australia Day, ANZAC Day and Christmas Carols. Their proposed use of funding is for hire of equipment, advertising, banners and entertainment. They also are requesting the City provide in-kind support for traffic management of the ANZAC Day march.

 

The requested amount is $5k plus up to $2k in-kind support.  MERG recommendation is to offer DDPA a 3 year agreement, consisting of $5k cash plus up to $2k in-kind per year under a multi-year agreement.

 

Trans Cape SwimRun

Trans Cape SwimRun is a team endurance race consisting of approximately 68km of running (mix of off-road, trail and road) and 10km of bay swimming, from Cape Naturaliste to Dunsborough. It has been run successfully in 2020 and 2021 with fields of 148 and 200 respectively, and due to demand have increased registrations to 260 for 12 March 2022. They have been previously sponsored for $3k, and are seeking a small increase in 2021/22. The proposed use of funding is for further development and promotion of the event.

 

MERG recommendation is to offer a 3 year agreement, consisting of $3.5k cash per year under a multi-year agreement.


 

Margaret River Readers & Writers Festival

Margaret River Readers & Writers Festival (MRRWF) has been operating successfully in Margaret River since 2009. They have had limited involvement within the City, over the past few years introducing programs with the schools and more recently libraries. They are applying for funding to bring more high profile public events into Busselton and Dunsborough, namely a series of free and low cost events including author talks, writers workshops, storytelling sessions and panel sessions, to be held at various venues over the weekend of 13-15 May 2022. The proposed use of funding is for event production and author fees. Due to this being a first time event, it is not recommended to award the full requested amount, further funding can be assessed on the results of this first year.

The requested amount is $10,000 and the MERG recommendation is a single year funding of $7,500.

Busselton Tennis Club – Junior & March Open events

The Junior and March Open tennis events have both been held in Busselton for more than 60 years. The Junior event attracts more than 200 players plus their families over the Australia Day weekend, while the March Open has more than 350 players plus spectators over the March long weekend. Each event has previously been sponsored for an amount of $2,000 per year, however the Tennis Club are seeking an increase to the level of funding for the March Open event. The proposed use of funding is for prizes and promotion.

MERG recommendation is to offer a 3-year agreement to each event, consisting of $3,500 cash per year for the March Open even, and $2,000 per year to the Junior Tournament under multi-year agreements.

Yallingup Shred Fest

The inaugural Yallingup Shred Fest was held in April 2021, running as a lead in event to the Margaret River Pro. It is an elite level Junior Surfing event, primarily attracting 12-18 year old surfers from around the State and Interstate (travel restrictions permitting). The proposed use of requested funding is judges fees, water safety jet skis and drone, marketing and promotion, Welcome to Country, speaker hire, insurance and prizes. As this event is still developing, it is not recommended to award the full requested funding amount.

The requested amount is $10,320 and MERG recommendation is a single-year agreement for the amount of $7,000.

Busselton Mardi Gras Fair Day

The Busselton Mardi Gras Parade and Fair Day has been held annually since March 2018, providing a safe space event for at-risk youth, adult and family members of LGBTIQ+ and local community,  providing information and education for local community on LGBTIQ+ presence and issues, and creating a culturally unique tourism event. In 2021, the parade component was not held due to COVID restrictions. The parade will be reinstated as of the 26 March 2022 event, along with the entertainment and stalls. The proposed use of requested funding is for marketing, infrastructure and entertainment. The requested funding is a combination of cash contribution as well as in-kind support towards traffic management, venue hire and billboard hire.

The requested funding amount is $6,500 cash plus up to $2.5k in kind support. MERG recommendation is to offer a 3 year agreement, consisting of $5,000 cash plus up to $2,500 in kind support per year under a multi-year agreement.


 

Busselton Hockey Association – Pride Cup

Run in conjunction with Busselton Mardi Gras weekend, the Busselton Pride Cup is a multi-sport competition for LGBTIQ+ athletes. Requested funding will be utilised for the opening ceremony for all sports to be held on Friday 25 March 2022, as well as hosting the Pride Cup hockey game. The proposed use of funding is for marketing of the event as well as entertainment.

 

The requested funding amount is $2,000 and MERG recommend funding under a single year agreement for the requested amount.

 

In summary, MERG recommends the following, to be funded from the 2021/22 – 2023/24 Events Budgets:

Event Name

Requested

MERG Recommendation

Yalambi Spring Jumping Classic

$5,000

2021/22 $3,000

2022/23 $3,000

2023/24 $3,000

DDPA Community Civic Events

$5000 cash

(+ up to $2k in kind)

2021/22 $5000

2022/23 $5,000

2023/24 $5,000

(+ up to $2k in kind per year)

Trans Cape SwimRun

$3,500

2021/22 $3,500

2022/23 $3,500

2023/24 $3,500

Margaret River Readers & Writers Festival

$10,000

2021/22 $7,500

Busselton Tennis Club – March Open Tournament

$5,000

2021/22 $3,500

2022/23 $3,500

2023/24 $3,500

Busselton Tennis Club – Junior Open Tournament

$2,000

2021/22 $2,000

2022/23 $2,000

2023/24 $2,000

Yallingup Shred Fest

$10,320

2021/22 $7,000

Busselton Mardi Gras Fair Day

$6,500 cash

(+ up to $2.5k in kind)

2021/22 $5,000

2022/23 $5,000

2023/24 $5,000

(+ up to $2.5k in kind per year)

Busselton Hockey Association – Pride Cup

$2,000

2021/22 $2,000

TOTALS

$49,320

(+ up to $4.5k in kind)

2021/22 $38,500

2022/23 $22,000

2023/24 $22,000

(+ up to $4.5k in kind per year)

 


Requests for Funding – 2022/23 – 2024/25 Events Budgets

Two (2) applications for funding from the 2022/23 – 2024/25 Events Budgets have been received, from CinefestOZ and Cabin Fever Festival:

 

CinefestOZ

Since its inception in 2008, CinefestOZ has become of the City’s hallmark events, attracting visitation in the winter months and growing in stature as one of Australia’s premier film festivals. CinefestOZ has reached the end of the previous sponsorship agreement, which was for an amount of $120k in 2019/20, 2020/21 and 2021/22 respectively.  CinefestOZ have applied for a multi-year agreement from 2022/23 – 2024/25 for an amount of $160k per year.  They have cited the reasons for the increase in additional funding as follows:

·        Industry program (providing opportunities to leverage the City of Busselton’s Film Friendly destination status).

·        Extending the free Community Day incorporating IndigifestOZ beyond a pilot and into a regular feature of the event.

·        Expanding national marketing and publicity campaigns and leveraging the direct flights to Busselton Margaret River Airport.

 

MERG members felt that a substantial increase required further information and as such feel that at this stage,  recommendation should be made to fund CinefestOZ for the current amount of $120,000 per year from the 2022/23, 2023/24 and 2024/25 Events Budgets. The decision to award any funding increase will be deferred until the next meeting, when more information can be obtained.

 

Cabin Fever Festival

Cabin Fever is a 10-day destination winter festival, held each July throughout the Margaret River region. 2022 will see the festival continue for its sixth year.  Cabin Fever has previously been sponsored under a multi-year agreement in 2019/20, 2020/21 and 2021/22 for $15,000, $14,000 and $13,000 respectively. They are seeking a substantial increase in their funding, the purpose of which is for infrastructure to create a festival hub at the Busselton foreshore, which will become a focal point for the festival and allow multiple larger capacity events to be held in the space. This will allow the festival to grow further and attract additional tourism through the quietest winter period.

 

MERG recommends an allocation of $40,000 per year to be funded from the 2022/23, 2023/24 and 2024/25 Events Budgets.


 

In summary, MERG recommends the following, to be funded from the 2022/23 – 2024/25 Events Budgets:

Event Name

Requested

MERG Recommendation

CinefestOZ

2022/23 $160,000

2023/24 $160,000

2024/25 $160,000

*2022/23 $120,000

*2023/24 $120,000

*2024/25 $120,000

Cabin Fever Festival

2022/23 $40,000

2023/24 $40,000

2024/25 $40,000

2022/23 $40,000

2023/24 $40,000

2024/25 $40,000

TOTALS

2022/23 $200,000

2023/24 $200,000

2024/25 $200,000

2022/23 $160,000

2023/24 $160,000

2024/25 $160,000

* Further funding to be determined at next meeting.

 

Statutory Environment

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

 

Relevant Plans and Policies

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

 

Financial Implications

At the Council meeting of 26 July 2021 Council resolved (C2107/138) to include an allocation of $1,196,700 in the 2021/22 Marketing and Events Budget, which contains the following allocations:

·        $924,900 towards event sponsorships,

·        $231,800 towards Marketing and Economic Development initiatives, and

·        $40,000 towards City run events.

In addition to the above allocation for event sponsorships, an amount of $55,500 was carried over from the 2020/21 Events Budget due to the approved carry-over of $38,000 from the CinefestOZ 2020 event and the rescheduling of two (2) events into the 2021/22 financial year (Raising the Vibe concert $5,000, Margaret River Region Open Studios $12,500). Therefore the overall 2021/22 Events Budget is $980,400.

 

Funds currently committed from the 2021/22 Events Budget through multi-year agreements and Round 1 of the Event Sponsorship Program totals $761,000. In addition, $110,000 is allocated towards the development of the 2022 Winter Wonderland event. This leaves a balance of $109,400 in the 2021/22 Events Budget for Round 2 of the Event Sponsorship Program and any further event attraction or initiatives. This balance includes funds from cancelled events.

 

In addition to the $231,800 allocated towards Marketing and Economic Development initiatives , an amount of $45,000 was carried over from the 2020/21 Marketing Budget due to two (2) funded projects not having been completed (Tourism Information Bay Signage $5,000, Event Strategy review $40,000). Therefore the overall 2021/22 Marketing Budget is $276,800.

 

Funds currently committed from the 2021/22 Marketing Budget total $158,625 (Airport Marketing Reserve $50,000; Busselton Performing Arts and Convention Centre (BPACC) $50,000; update of the City’s Events Strategy $40,000), update of tourism signage ($5k) and allocations through Round 1 ($13,625), leaving a balance of $118,175 remaining for any further initiatives.

 

There is also a balance of $219,852 remaining in the Marketing and Area Promotions Reserve, as well as $200,000 carried over for the development of the electronic billboard.

 

Stakeholder Consultation

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

 

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place.  The officer recommendation does not introduce any risks identified as being of a high or medium level. No risks of a medium or greater level have been identified.

 

Options

As an alternative to the recommendation, Council may choose not to support the recommendations made by MERG and resolve not to endorse part or all of the recommendations.

 

CONCLUSION

The MERG has been established by Council to make recommendations on the way in which funds raised through the industrial and commercial differential rate for the purposes of events and marketing are allocated. This report contains the recommendations made at the 24 November 2021 MERG meeting, which if endorsed by Council, will result in the continuation of high quality events being held within the region, supported by successful marketing promotions. All recommendations support Council’s vision of being recognised as the ‘Events Capital WA.’

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

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

 

 


Council                                                                                      230                                                          8 December 2021

16.             Finance and Corporate Services Report

16.1           ADOPTION OF 2020-2021 ANNUAL REPORT

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

Annual Report

BUSINESS UNIT

Corporate Services

REPORTING OFFICER

Corporate Planning Officer - Cathy Burton

AUTHORISING OFFICER

Acting Director, Finance and Corporate Services - Sarah Pierson

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   Annual Report 2020-2021  

 

OFFICER RECOMMENDATION

That the Council accepts the 2020-2021 Annual Report as per Attachment A.

 

EXECUTIVE SUMMARY

This report presents the City of Busselton 2020-2021 Annual Report (Annual Report) for Council’s acceptance in accordance with the Local Government Act 1995 (the Act).

 

BACKGROUND

The City produces an annual report of activities at the conclusion of each financial year, in accordance with the requirements of the Local Government Act 1995 and the Local Government (Administration) Regulations 1996.

An annual report sets out information about the City’s progress and achievements in respect of its strategic priorities, and the actions and projects outlined in the Corporate Business Plan.

 

OFFICER COMMENT

The Annual Report 2020-2021 documents the City’s achievements during the 2020-2021 financial year. Aligned to Key Goal Areas of the City’s Strategic Community Plan 2017 (Review 2019), being the plan that was current at the beginning of the 2020-2021 year, the report provides a snapshot of achievements across key actions, projects and core service delivery.  It also outlines prescribed statutory information and includes the full suite of the City’s audited financial statements along with the independent auditor’s report.

 

As required, the Annual Report also outlines changes to the City’s strategic community plan following a major review of the plan during the year, with the City adopting its Strategic Community Plan 2021 – 2031. The forward planning priorities align to the 4 Key Themes of this new strategic community plan.

 

The statutory information included in this year’s Annual Report has been expanded in response to amendments to regulation 19B of Local Government (Administration) Regulations 1996 in November 2020.  The requirements of this regulation is set out in the Statutory Environment section of this report. 

 

The Annual Report records Council membership as current for the 2020-2021 financial year. Council membership following the local government elections held on 16 October 2021 will be recorded in the 2021-2022 Annual Report.

 

Adoption of the Annual Report requires an absolute majority decision of Council. Upon adoption, hard copies will be produced for public distribution and a digital version posted to the City’s website. The content of the adopted Annual Report will be open for discussion at the Annual General Meeting of Electors, which is proposed to be held within the required 56 days after Council adoption.   

 

Statutory Environment

Sections 5.53, 5.54, 5.55, and 5.55A of the Local Government Act 1995 describe the required content of a local government’s annual report and how to prepare, accept, give notice of and publish the report. 

 

In accordance with Section 5.53 the annual report is to contain:

·        A report from the mayor or president; and

·        A report from the CEO; and

·        An overview of the plan for the future of the district made in accordance with section 5.56, including major initiatives that are proposed to commence or to continue in the next financial year; and

·        The financial report for the financial year; and

·        Such information as may be prescribed in relation to the payments made to employees; and

·        The auditor’s report prepared under section 7.9(1) or 7.12AD(1) for the financial year; and

·        A matter on which a report must be made under section 29(2) of the Disability Services Act 1993; and

·        Details of entries made under section 5.121 during the financial year in the register of complaints, including:

·        the number of complaints recorded in the register of complaints; and

·        how the recorded complaints were dealt with; and

·        any other details that the regulations may require; and

·        such other information as may be prescribed.

 

Section 19B(2)  of the Local Government Administration (Regulations) 1996 requires the annual report to  include:

·        The number of employees entitled to an annual salary of $130,000 or more;

·        The number of employees entitled to an annual salary that falls within each band of $10,000 over $130,000;

·        Any remuneration and allowances paid by the local government under Schedule 5.1 clause 9 during the financial year;

·        Any amount ordered under section 5.1 19(6)(b)(iv) to be paid by a person against whom a complaint was made under section 5.107(1), 5.109(1) or 5.114(1) to the local government during the financial year;

·        The remuneration paid or provided to the CEO during the financial year;

·        The number of Council and committee meetings attended by each council member;

·        If available, the gender, linguistic background and country of birth of council members;

·        If available, the number of council members who are aged:

(i)        between 18 and 24 years; and

(ii)       between 25 and 34 years; and

(iii)      between 35 and 44 years; and

(iv)      between 45 and 54 years; and

(v)       between 55 and 64 years; and

(vi)      over the age of 64 years;

·        If available, the number of Council members who identify as Aboriginal or Torres Strait Islander;

·        Details of any modification made to a local government’s strategic community plan during the financial year;

·        Details of any significant modification made to local government’s corporate business plan during the financial year.

 

Section 5.54 of the Act requires the Annual Report to be accepted by an absolute majority of Council before 31 December each year and published on the City’s website within 14 days of acceptance.

 

Section 5.27 of the Act requires an annual general electors meeting be held within 56 days of acceptance of the annual report, upon the provision of 14 days’ notice.

 

Relevant Plans and Policies

The Annual Report provides a report of progress against the City’s Corporate Business Plan for the 2020-2021 year and the City’s Strategic Community Plan.

 

Financial Implications

There are no financial implications associated with the officer recommendation.

 

Stakeholder Consultation

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

 

Risk Assessment

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

 

Options

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

1.         Not accept the Annual Report 2020-2021 noting that Council are required to accept this report no later than 31 December 2021;

2.         Request changes to the Annual Report 2020-2021;

CONCLUSION

The City of Busselton Annual Report 2020–2021 must be accepted by an absolute majority of Council before being publicly released.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Once adopted, the Annual Report 2020-2021 will be posted to the City’s website. Availability of the adopted report will also be promoted via the City’s Facebook and Instagram accounts, and in the City’s ‘Council Connect’ section of the ‘Busselton-Dunsborough Times’ newspaper.

 

The Annual General Meeting of Electors will be held within the required 56 days. A two-week statutory advertising period of the Annual General Meeting of Electors is required.

 


Council

354

8 December 2021

16.1

Attachment a

Annual Report 2020-2021

 




























































































































 


Council                                                                                      356                                                          8 December 2021

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 SAT Reviews

Attachment b    Notes of Meeting of Lower Vasse Management Advisory Group  2 November 2021

Attachment c    Communique from Lower Vasse River Management Advisory Group 2 November 2021

Attachment d   Notes of Meeting of Busselton Jetty Reference Group 23 July 2021

Attachment e    Notes of Meeting of Busselton Jetty Reference Group 10 September 2021

Attachment f    Minutes of Meeting of South West Zone of WALGA 19 November 2021

Attachment g   LEEUWIN NAT City of Busselton Letter

Attachment h   Abbey Planning Investigation Area Aerial

Attachment i     Vasse North Planning Investigation Area

Attachment j     Dunsborough Planning Investigation Area

Attachment k    Vasse South Planning Investigation Area  

 

OFFICER RECOMMENDATION

 

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

17.1.1       State Administrative Tribunal Reviews 

17.1.2       Notes of Meeting of Lower Vasse River Management Advisory Group Meeting 2 November 2021

17.1.3       Notes of Meetings of Busselton Jetty Reference Group 23 July 2021 and 10 September 2021

17.1.4       Minutes of Meeting of South West Country Zone of WALGA held on 19 November 2021

 

17.1.5       Leeuwin-Naturaliste Planning Investigation Areas

 

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 

The current State Administrative Tribunal Reviews is at Attachment A.

17.1.2       Notes of Meeting of Lower Vasse River Management Advisory Group Meeting 2 November 2021

The notes and communique of the meeting of the Lower Vasse River Management Advisory Group are at Attachment B and Attachment C.

17.1.3       Notes of Meetings of Busselton Jetty Reference Group 23 July 2021 and 10 September 2021

The notes of the meetings of the Busselton Jetty Reference Group held on 23 July 2021 and 10 September 2021 are at Attachment D and Attachment E respectively.

17.1.4       Minutes of Meeting of South West Country Zone of WALGA held on 19 November 2021

The minutes of the meeting of the South West Country Zone of WALGA held on 19 November 2021 are at Attachment F.

 

17.1.5       Leeuwin-Naturaliste Planning Investigation Areas

The City has recently received correspondence from the Western Australian Planning Commission (WAPC) regarding the above. A copy of that correspondence is attached.

 

In summary, the WAPC has asked the Department of Planning, Lands & Heritage (DPLH) to prepare a report for the WAPC’s consideration, and which sets out the following potential changes to the Leeuwin-Naturaliste Sub-regional Planning Strategy (LNSPS):

1.         Delete the Abbey Planning Investigation Area and instead identify particular lots in that area as either ‘Urban’ or ‘Open Space Investigation’;

2.         Delete the Vasse North Planning Investigation Area and instead identify particular lots in that area as either ‘Urban’ or ‘Open Space Investigation’;

3.         Delete the Dunsborough Planning Investigation Area and instead identify particular lots in that area as ‘Urban’; and

4.         Delete the Vasse South Planning Investigation Area.

 

Plans are also attached (attachments G to K) identifying the areas described above (note these are plans prepared by the City, on the basis of written descriptions in the WAPC correspondence or, in the case of Vasse South, earlier planning processes).

 

The WAPC decision is essentially consistent with Council resolutions in relation to development of the LNSPS and the City’s Local Planning Strategy (LPS) with respect to Abbey and Dunsborough (both of which Council has consistently supported throughout the processes to develop those documents). The decision is, however, inconsistent with Council resolutions with respect to Vasse North and Vasse South (the Council has not been supportive of the identification of Vasse North as a future urban growth area, and has instead been supportive of the identification of Vasse South as a future urban growth area). City officers will provide the Council with further information regarding these matters when that information becomes available.


Council

358

8 December 2021

17.1

Attachment a

Current SAT Reviews

 



Council

361

8 December 2021

17.1

Attachment b

Notes of Meeting of Lower Vasse Management Advisory Group  2 November 2021

 





Council

366

8 December 2021

17.1

Attachment c

Communique from Lower Vasse River Management Advisory Group 2 November 2021

 





Council

368

8 December 2021

17.1

Attachment d

Notes of Meeting of Busselton Jetty Reference Group 23 July 2021

 



Council

370

8 December 2021

17.1

Attachment e

Notes of Meeting of Busselton Jetty Reference Group 10 September 2021

 



Council

394

8 December 2021

17.1

Attachment f

Minutes of Meeting of South West Zone of WALGA 19 November 2021

 

























Council

399

8 December 2021

17.1

Attachment g

LEEUWIN NAT City of Busselton Letter

 






Council

400

8 December 2021

17.1

Attachment h

Abbey Planning Investigation Area Aerial

 


Council

401

8 December 2021

17.1

Attachment i

Vasse North Planning Investigation Area

 


Council

402

8 December 2021

17.1

Attachment j

Dunsborough Planning Investigation Area

 


Council

403

8 December 2021

17.1

Attachment k

Vasse South Planning Investigation Area

 


Council                                                                                      404                                                          8 December 2021

18.             Motions of which Previous Notice has been Given

Nil

 

19.             urgent business

 

20.             Confidential Matters

Nil 

 

21.             Closure