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

CITY OF BUSSELTON

MINUTES OF THE Council MEETING HELD ON 8 December 2021

TABLE OF CONTENTS

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

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

2....... Attendance. 3

3....... Prayer. 4

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

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

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

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

8....... Confirmation and Receipt Of Minutes. 12

Previous Council Meetings. 12

8.1          Minutes of the Council Meeting held 24 November 2021. 12

Committee Meetings. 12

8.2          Minutes of the Audit and Risk Committee Meeting held 18 November 2021. 12

8.3          Minutes of the Finance Committee Meeting held 24 November 2021. 12

8.4          Minutes of the Airport Advisory Committee Meeting held 1 December 2021. 12

9....... RECEIVING OF Petitions, Presentations AND DEPUTATIONS. 13

10..... QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN (WITHOUT DISCUSSION). 13

11..... Items brought forward.. 14

ADOPTION BY EXCEPTION RESOLUTION.. 14

12.1        Audit and Risk Committee - 18/11/2021 - CITY OF BUSSELTON 2020/2021 ANNUAL FINANCIAL REPORT, AUDITORS' REPORT AND MANAGEMENT LETTER. 15

12.2        Audit and Risk Committee - 18/11/2021 - 2021 OFFICE OF AUDITOR GENERAL CYBER SECURITY AND GENERAL COMPUTER CONTROLS AUDIT. 98

12.3        Finance Committee - 24/11/2021 - LIST OF PAYMENTS MADE - OCTOBER 2021. 120

12.4        Finance Committee - 24/11/2021 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 OCTOBER 2021. 130

12.5        Finance Committee - 24/11/2021 - SELF SUPPORTING LOAN APPLICATION - GEOGRAPHE BAY YACHT CLUB INC. 162

12.6        Finance Committee - 24/11/2021 - SELF SUPPORTING LOAN APPLICATION - MARGARET RIVER BUSSELTON TOURISM ASSOCIATION.. 167

12.7        Airport Advisory Committee - 1/12/2021 - BUSSELTON MARGARET RIVER AIRPORT - NOISE MANAGEMENT PLAN REVIEW... 208

12.8        Airport Advisory Committee - 1/12/2021 - BUSSELTON MARGARET RIVER AIRPORT - AIRPORT UPDATE. 310

14.1        RFT 19/21 DNSL SPORTS PRECINCT CARPARK & COURTS. 316

15.1        EXPRESSION OF INTEREST -  RESERVE 46187 LOT 448 MARINE TERRACE: OLD TENNIS CLUB BUILDING.. 323

17.1        COUNCILLORS' INFORMATION BULLETIN.. 331

ITEMS TO BE DEALT WITH BY SEPARATE RESOLUTION (without debate). 381

14.2        MEELUP REGIONAL PARK COMMITTEE - APPOINTMENT OF COMMUNITY MEMBERS. 381

15.2        MARKETING AND EVENTS REFERENCE GROUP OUTCOMES. 388

16.1        ADOPTION OF 2020-2021 ANNUAL REPORT. 397

18..... Motions of which Previous Notice has been Given.. 525

19..... urgent business. 525

20..... Confidential Reports. 525

21..... Closure. 526

 


Council                                                                                      4                                                               8 December 2021

MINUTES

 

MINUTES OF A Meeting of the Busselton City Council HELD IN THE Council Chambers, Administration Building, Southern Drive, Busselton, ON 8 December 2021 AT 5.30pm.

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

The Presiding Member opened the meeting at 5.30pm.

The Presiding Member noted this meeting is held on the lands of the Wadandi people and acknowledged them as Traditional Owners, paying respect to their Elders, past and present, and Aboriginal Elders of other communities who may be present.

 

2.               Attendance

Presiding Member:

Members:

 

Cr Grant Henley     Mayor

Cr Paul Carter          Deputy Mayor

Cr Sue Riccelli

Cr Ross Paine

Cr Kate Cox

Cr Anne Ryan

Cr Phill Cronin

Cr Jodie Richards

Cr Mikayla Love

 

Officers:

 

Mr Mike Archer, Chief Executive Officer

Mr Oliver Darby, Director, Engineering and Works Services

Mrs Tanya Gillett, Acting Director, Planning and Development Services

Mrs Naomi Searle, Director, Community and Commercial Services

Ms Sarah Pierson, Acting Director, Finance and Corporate Services

Mrs Emma Heys, Governance Coordinator

Ms Melissa Egan, Governance Officer

 

Apologies:

 

Nil

 

Approved Leave of Absence:

 

Nil

 

Media:

 

“Busselton-Dunsborough Times”

 

Public:

 

11

3.               Prayer

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

 

4.               Application for Leave of Absence 

Nil

 

5.               Disclosure Of Interests

Nil

 

6.               Announcements Without Discussion

Announcements by the Presiding Member

 

The Mayor noted with concern that Busselton’s neighbours in the Shire of Augusta Margaret River are under threat from a serious bush fire in the Boranup Forest and twelve City of Busselton volunteer Bush Fire Brigades are responding to that incident. The Mayor noted those in the community who continue to provide emergency services, and offered the City’s thoughts and prayers to them over the holiday season.

 

7.               Question Time For Public

Response to Previous Questions Taken on Notice

 

The following questions were taken on notice by the Council at the 24 November 2021 Ordinary Council meeting:

 

7.1             Mr Gordon Bleechmore

 

Question

How many limestone extraction licences are issued in the City of Busselton?

 

Response

(response provided by Mr Oliver Darby, Director Engineering and Works Services)

There is one limestone extraction licence that is current in the City of Busselton, that being to Beachborough Pty Ltd.

 

7.2             Mr Gordon Bleechmore

 

Question

Has the final amount of Blu Tack been removed from the walls of the Community Resource Centre?


 

Response

(response provided by Ms Sarah Pierson, Acting Director Finance and Corporate Services)

As per Mr Nottle’s previous advice, Blu Tack is sometimes used where there are no alternate options or where alternative methods have been tried and determined not to be preferred. Therefore, there may be Blue Tack in use from time to time.  As previously communicated, we have not noticed any obvious damage caused by its use, where it is used. 

 

7.3             Mr Gordon Bleechmore

 

Question

About 12 months ago, there was plastic placed around the peppermint trees behind the Weld Theatre – what was that for?

 

Response

(response provided by Mr Oliver Darby, Director Engineering and Works Services)

This practice is known as a possum band, used to restrict possum activity to early new growth on trees suffering from salt / wind damage. Once sufficient growth has returned, the possum band will then be removed.

 

7.4             Mr Gordon Bleechmore

 

Question

Mr Forrest, who has a limestone extraction licence at Ludlow, applied to have a caveat on his property lifted to allow a change of financial institutions. It was later discovered that the lawyers acting for the City of Busselton were instructed to go slow. Who from the City would have given that instruction?

 

Response

(response provided by Ms Sarah Pierson, Acting Director Finance and Corporate Services)

No such instruction was given by City officers to the lawyers acting for the City of Busselton.

 

Question Time for Public

 

7.5             Ms Michelle Shackleton

 

Question

Mr Terry Ealing and other residents have made numerous calls to the Mayor, Cr Carter, planning officers and Mr Archer about an extractive licence in Abba River, that they claim is being conducted contrary to the conditions of the development application. Will Council represent these ratepayers?

 

Response

(Mrs Tanya Gillett, Acting Director, Planning and Development Services)

The Compliance department has had regular dealings with Mr Ealing over the years and there is a current investigation underway. There is also an Ombudsman investigation that is ongoing.

 


 

Question

In relation to the bridge on Yallingup Beach Road, when are works expected to be completed?

 

Response

(Mr Oliver Darby, Director, Engineering and Works Services)

It is a Main Roads project. We have been keeping the Yallingup Residents Association updated on the progress of that project. There have been some minor delays but it is due for completion very soon.

 

Following the meeting, further information was provided by Mr Darby by email: Main Roads Western Australia have indicated that the bridge is on schedule for completion on 11 December 2021. Please note that the works commenced on 7 September 2021.

 

Question

At the time of the two fires that were deliberately lit this time last year, a resident left her property early and got caught up in a traffic jam at the intersection of Caves Road and Yallingup Beach Road. What can be done to get traffic management into the area as soon as possible during a similar emergency?

 

Response

(Mayor)

I attended a briefing in Yallingup following the incident. The issue of traffic management and other more suitable access points was raised, and it is the responsibility of Police in those situations to direct traffic.

 

Question

At the last Community Access Session, Cr Paine had a telephone raised and pointed at me. I would like to know if he was making a video or audio recording of me.

 

Response

(Cr Ross Paine)

That did not happen.

 

 

7.6             Mr Don Evill

 

Question

During the meeting on 24 November 2021, Cr Carter spoke on the motion about the Busselton Performing Arts and Convention Centre project that “this facility is a significant component to our offering of the Events Capital of WA and will complement our airport, our foreshore, our Australian Underwater Discovery Centre, our hotel investments, that will contribute to all of these things”. What did Cr Carter mean by “our” hotel investments?

 

Response

(Cr Paul Carter)

I was not referring to the City of Busselton’s investment in a hotel. I was referring to the fact we have those particular assets within the City of Busselton. I am referring to the City of Busselton as a collective place of living and participating.

 

 

 

 

 

Question

So there is no financial, preferential or inducement given to the current hotel development by the Hilton?

 

Response

(Mayor)

The development on the foreshore is part of the foreshore master planning and the development of the foreshore incorporated funding from a State, Federal and local level to deliver infrastructure and services to facilitate development, including hotels, the Shelter development, development on the Jetty and future hotel sites.

 

Question

Is the City of Busselton providing car parking which will be put aside for the use of the Hilton Hotel?

 

Response

(Mayor)

Some of the bays will be for the benefit of the hotel development and some will be publicly accessible.

 

Question

Is the Hilton leasing the car bays or have they been given the car bays?

 

Response

(Mr Mike Archer, Chief Executive Officer)

They have a licence agreement under which they are leasing the car bays from the City for a period of 60 years.

 

Question

Are we able to see what the leasing figures are [for the car park]?

 

Response

(Mayor)

We will take that on notice and provide you the information as long as it is not commercial in confidence. The Hilton Hotel will pay a lease to the benefit of predominately the Jetty Maintenance Reserve and they will also pay a considerable amount in City of Busselton rates.

 

 

7.6             Mr Keith Sims

 

Question

To come under the tender amount of $38 million [for the Busselton Performing Arts and Convention Centre (BPACC)], you removed the ground kitchen to save almost $477,000. If you decide to reinstate the kitchen, where would the money be obtained to complete it?

 

Response

(Mayor)

It would be a future decision of Council to apply for grant funding or find other funding, if it was proved to be necessary in the future.

 


 

Question

The resolution to proceed with the BPACC stated the cost is not to exceed $38 million and was achieved by removing approximately $4 million from the tender, including removal of the kitchen. How can you retrofit the kitchen without passing a new resolution?

 

Response

(Mr Archer)

We are not intending to put it back at this point in time.

 

Response

(Mayor)

The resolution is to enter into a construction contract for the building for no more than $38 million. There will be other costs in the future, for example consumables and replacement of carpet, which may push its whole of life costs over $38 million.

 

Question

The Holiday Home Regulatory Review Framework report will be provided to Council in early 2022. One of the recommendations is for the manager to live no more than 30 minutes away from the accommodation and respond within 12 hours to community complaints. Can you explain the reasoning for the 12 hour timeframe?

 

Response

(Mayor)

It was not a recommendation of officers, but one of many options that were presented to the community during the consultation period of the review of the Holiday Homes Regulatory Framework. When we implemented our local law in 2012, it was required to go through the Joint Standing Committee of Parliament. We initially had a shorter response time included, but the Joint Standing Committee said that it was unreasonable and 24 hours was a reasonable time for a manager to respond to a complaint. We successfully argued for 12 hours, but it was determined by the Joint Standing Committee that it was unreasonable to respond in any quicker time than that.

 

Question

The State Government has just released their rules for holiday homes for public comment. Why isn’t the City waiting for the State Government regulations to be framed prior to changing its local law?

 

Response

(Mayor)

We proceeded with the review of the local law because we could not wait any longer. We were required to review a local law after eight years. We also looked at the planning scheme and local planning policies and how they can be better used to address these issues. We could not wait for the State to put out its legislation, which could still be twelve months to two years away.

               


 

Question

Where have the recordings of the last Community Access Sessions been stored?

 

Response

(Ms Sarah Pierson, Acting Director, Finance and Corporate Services)

The audio recording of the Community Access Session is under the Council section of the website. The City is currently considering its position on whether to continue to record Community Access Sessions.

 

 

7.7             Mrs Jill Walsh

 

                   Question

                   In relation to the holiday accommodation, is the City in a position to give feedback to the State Government from a local government perspective?

 

                   Response

                   (Mayor)

                   I am sure the Council will be making a submission on that. It is very important to the community.

 

 

7.8             Mr Gordon Bleechmore

                  

                   Question

                   At the last meeting, I asked who from the City gave instructions to go slow with Mr John Forrest’s application for the removal of a caveat on his property title. Why did this operation take two weeks longer than normal and settlement only occurred an hour before a critical deadline?

 

                   Response

                   (Mayor)

                   I am unaware of any reason for the delay in the process or what the usual length of process is, only that no instruction was given to the lawyers to hold up the process.

 

                   Question

                   Can you investigate and provide an answer at a later date?

 

                   Response

                   Your question has been responded to.

 

                   Question

                   How many extraction licences issued by the City of Busselton have a caveat placed on the property owner’s title?

 

                   Response

                   (Mayor)           

We will take that on notice.

 

                  

 

 

 

 

Question

                   Who with an extraction licence issued by the City of Busselton has a caveat placed on their property title?

 

                   Response

                   (Mayor)           

We will take that on notice.

 

                   Question

                   In most extraction licences, a pit survey must be conducted within a certain date after the licence has been issued. Do all current extraction licences in the City of Busselton meet this condition?

 

                   Response

                   (Mayor)           

We will take that on notice.

 

Question

Why did the City not accept the pit survey conducted by John Forrest and request that the City of Busselton provide their own survey?

 

Response

(Mr Archer)

We are unable to respond to that question as the matter is under investigation and, as such, details remain confidential.

 

Question

How much did it cost the City to conduct a second survey?

 

Response

(Mayor)

We are unable to respond to that question as the matter is under investigation and, as such, details remain confidential.   

 

                   Question

                   Who decided that the survey conducted by Mr Forrest was not good enough?

 

                   Response

                   (Mayor)

We are unable to respond to that question as the matter is under investigation and, as such,

details remain confidential.

 

Question

Does the City intend to suspend or cancel the licence of Mr Forrest if it is found to be in breach?

 

Response

(Mayor)

I do not want to presuppose an outcome of an investigation currently underway and, as such, we are unable to respond to that question and the details remain confidential.

 

 

 

 

Question

Has the City of Busselton considered, if it cancels Mr Forrest’s licence, that it loses control of the conditions under the licence?

 

Response

(Mayor)

If we were to cancel the licence, which is a planning approval, there would still be a requirement to perform rehabilitation etc.

 

Question

What happens if the State invoked an order to source materials from a pit with a suspended or cancelled licence?

 

Response

(Mayor)

We will take that on notice.

 

Question

When will the plastic be removed from the peppermint trees behind the Weld Theatre?

 

Response

We will take that on notice.

 

 

 

                               


 

8.               Confirmation and Receipt Of Minutes

Previous Council Meetings

8.1             Minutes of the Council Meeting held 24 November 2021

COUNCIL DECISION

C2112/105              Moved Councillor P Carter, seconded Councillor R Paine

 

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

CARRIED 9/0

 

Committee Meetings

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

COUNCIL DECISION

C2112/106              Moved Councillor P Cronin, seconded Councillor P Carter

 

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

CARRIED 9/0

 

 

8.3             Minutes of the Finance Committee Meeting held 24 November 2021

COUNCIL DECISION

C2112/107              Moved Councillor P Carter, seconded Councillor A Ryan

 

That the Minutes of the Finance Committee Meeting held 24 November 2021 be noted.

CARRIED 9/0

 

 

8.4             Minutes of the Airport Advisory Committee Meeting held 1 December 2021

COUNCIL DECISION

C2112/108              Moved Councillor A Ryan, seconded Councillor J Richards

 

That the Minutes of the Airport Advisory Committee Meeting held 1 December 2021 be noted.

CARRIED 9/0

 


 

9.               RECEIVING OF Petitions, Presentations AND DEPUTATIONS

Petitions

 

Nil

Presentations

 

Nil

Deputations

 

Nil

 

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

Nil


 

11.             Items brought forward

ADOPTION BY EXCEPTION RESOLUTION

At this juncture, the Mayor advised the meeting that the following items would be adopted en bloc, i.e. all together:

 

COUNCIL DECISION

C2112/109              Moved Councillor A Ryan, seconded Councillor P Cronin

 

That the Committee Recommendations for items 12.1, 12.2, 12.3, 12.4, 12.5, 12.6, 12.7 and 12.8 and the Officer Recommendations for items 14.1, 15.1 and 17.1 be carried en bloc:

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

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

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

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

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

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

12.7        Airport Advisory Committee - 1/12/2021 - BUSSELTON MARGARET RIVER AIRPORT - NOISE MANAGEMENT PLAN REVIEW

12.8        Airport Advisory Committee - 1/12/2021 - BUSSELTON MARGARET RIVER AIRPORT - AIRPORT UPDATE

14.1        RFT 19/21 DNSL SPORTS PRECINCT CARPARK & COURTS

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

17.1        COUNCILLORS' INFORMATION BULLETIN

CARRIED 9/0

EN BLOC

 


Council                                                                                      18                                                             8 December 2021

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.

The committee recommendation was moved and carried.

COUNCIL DECISION

C2112/110              Moved Councillor A Ryan, seconded Councillor P Cronin

 

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.

CARRIED 9/0

En Bloc

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 its 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

21

8 December 2021

12.1

Attachment a

Audit Opinion

 




Council

38

8 December 2021

12.1

Attachment b

Financial Statements for the Year Ending 30 June 2021

 











































































Council

97

8 December 2021

12.1

Attachment c

Management Letter Year Ending 30 June 2021

 



Council                                                                                      100                                                          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.

The committee recommendation was moved and carried.

COUNCIL DECISION

C2112/111              Moved Councillor A Ryan, seconded Councillor P Cronin

 

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.

CARRIED 9/0

En Bloc

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 and Risk 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 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 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

119

8 December 2021

12.2

Attachment a

Office of Auditor General - Information Services Audit Findings and Response

 




















Council                                                                                      121                                                          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.

The committee recommendation was moved and carried.

COUNCIL DECISION

C2112/112              Moved Councillor A Ryan, seconded Councillor P Cronin

 

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.

CARRIED 9/0

En Bloc

 

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

129

8 December 2021

12.3

Attachment a

List of Payments - October 2021

 








Council                                                                                      147                                                          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.

 

The committee recommendation was moved and carried.

 

COUNCIL DECISION

C2112/113              Moved Councillor A Ryan, seconded Councillor P Cronin

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.

CARRIED 9/0

En Bloc

 

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 $30,000 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

148

8 December 2021

12.4

Attachment a

Loan Schedule - October 2021

 


Council

153

8 December 2021

12.4

Attachment b

Financial Activity Statement - October 2021

 













Council

161

8 December 2021

12.4

Attachment c

Investment Report - October 2021

 


Council                                                                                      165                                                          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.

The committee recommendation was moved and carried.

COUNCIL DECISION

C2112/114              Moved Councillor A Ryan, seconded Councillor P Cronin

 

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.

CARRIED 9/0

En Bloc

 


 

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 $5,563 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

166

8 December 2021

12.5

Attachment a

Geographe Bay Yacht Club Strategic Plan 2022-26

 


Council                                                                                      171                                                          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.

The committee recommendation was moved and carried.

COUNCIL DECISION

C2112/115              Moved Councillor A Ryan, seconded Councillor P Cronin

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.

CARRIED 9/0

En Bloc

 


 

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.

 


Council

179

8 December 2021

12.6

Attachment a

Ancient Lands - Site Plan

 









Council

187

8 December 2021

12.6

Attachment b

Ancient Lands - Journey and Lookout

 









Council

199

8 December 2021

12.6

Attachment c

Ancient Lands - Pre Cave Experiences

 













Council

207

8 December 2021

12.6

Attachment d

Ancient Lands - Post Cave Experiences

 









Council                                                                                      220                                                          8 December 2021

12.7           Airport Advisory Committee - 1/12/2021 - BUSSELTON MARGARET RIVER AIRPORT - NOISE MANAGEMENT PLAN REVIEW

STRATEGIC THEME

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

STRATEGIC PRIORITY

3.4 Develop aviation opportunities at the Busselton Margaret River Airport.

SUBJECT INDEX

Busselton Margaret River Airport

BUSINESS UNIT

Commercial Services

REPORTING OFFICER

Manager Economic and Business Development Services - Jennifer May

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

NATURE OF DECISION

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

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   BMRA Noise Management Plan January 2019 Track Changes

Attachment b    Draft BMRA Noise Management Plan January 2022

 

This item was considered by the Airport Advisory Committee at its meeting on 1/12/2021, the recommendations from which have been included in this report.

The committee recommendation was moved and carried.

COUNCIL DECISION

C2112/116              Moved Councillor A Ryan, seconded Councillor P Cronin

 

That the Council:

1.         Notes the process undertaken to date to review the Busselton Margaret River Airport Noise Management Plan (NMP) as required by Ministerial Statement 1088 including:

(a)       Noise monitoring results;

(b)       Noise amelioration assessments and/or implementation;

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

(d)       Published flight paths to minimize impacts; and

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

2.         Notes the draft NMP (January 2022) and endorses it to be advertised for public comment as outlined in this report, with the following amendments recommended by the Committee:

a)         On page 43 (first paragraph), the addition of the words “City of Busselton” added before the word “website”;

b)        On page 43, the first sentence of the second paragraph be amended to read “The ANECs and N70 contours will be used by the City’s Strategic Planning department in future land use planning and town planning scheme amendments to protect both the community and future amenity for noise sensitive land users.”

 

c)         On page 53 (bullet-points 3 and 4), the addition of the words “City of Busselton” before the word “website”;

d)        On page 57 (fifth bullet-point), the words “Prosecuting serial non-compliant aircraft operators” be changed to “infringe in accordance with City of Busselton local laws serial non-compliant aircraft operators”; and

e)        The addition of a reference to the Airport’s special control zone to note that “the City has and will apply Airport notifications on the land titles”.

3.         Notes that where further amendments to the draft NMP (January 2022) are required as a result of public comment, the draft NMP (January 2022) will be brought back to Council prior to submitting a report to the CEO of the Office of the Environmental Protection Authority.

CARRIED 9/0

En Bloc

Reasons:     The Committee sought some administrative changes to the Noise Management Plan for clarity and the addition of a reference to the Airport notifications that the City holds and will apply to land titles.

 

OFFICER RECOMMENDATION

 

That the Council:

1.         Notes the process undertaken to date to review the Busselton Margaret River Airport Noise Management Plan (NMP) as required by Ministerial Statement 1088 including:

(a)       Noise monitoring results;

(b)       Noise amelioration assessments and/or implementation;

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

(d)       Published flight paths to minimize impacts; and

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

2.         Notes the draft NMP (January 2022) and endorses it to be advertised for public comment as outlined in this report.

3.         Notes that where further amendments to the draft NMP (January 2022) are required as a result of public comment, the draft NMP (January 2022) will be brought back to Council prior to submitting a report to the CEO of the Office of the Environmental Protection Authority.

 

EXECUTIVE SUMMARY

This report provides the recommendations resulting from the review of the Busselton Margaret River Airport Noise Management Plan version 2 (January 2019) and a draft Noise Management Plan (January 2022) to be advertised for public comment and stakeholder consultation prior to a report being submitted to the CEO of the Office for the Environmental Protection Authority by 7 April 2022.


 

BACKGROUND

The concept of a Noise Management Plan (NMP) for the Busselton Margaret River Airport (BMRA) was first initiated in 2009 when environmental consulting firm Strategen was engaged to prepare a draft NMP. This was in response to the first fly in-fly out (FIFO) services commencing at the then Busselton Regional Airport and the need to address the restrictive hours of operations and conditions specified in Ministerial Statement 399, approved by the Minister for the Environment (October 1995).

 

The key elements of Statement 399 that the then Shire of Busselton was looking to revise and seek approval from the Office of the Environmental Protection Authority (OEPA) and Minister for the Environment were:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Following extensive consultation with the OEPA, the City was notified in November 2016 that the level of environmental assessment for the BMRA Development Project (the Airport Expansion Proposal) was to be a Public Environmental Review (PER).

 

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

 

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

 

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

 

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

 

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

1)        Noise monitoring results;

2)        Noise amelioration assessments and/or implementation;

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

4)        Published flight paths to minimize impacts; and

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

 

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

 

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

 

This report outlines the review process completed to date, further actions still to be completed and a revised, draft NMP to be advertised for public comment and distributed to BMRA stakeholders for comment.

 

OFFICER COMMENT

A report presented to the AAC in October 2021 outlined the following to be considered in the review process:

1.         How the development opportunities for the airport have been pursued;

2.         Whether the flight paths and noise abatement zones need updating;

3.         Whether the standard hours of operation need to be adjusted;

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

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

 

A review has now been completed and this report provides an update on the officers’ findings and recommendations.

 

BMRA Development Opportunities

Over the last three years, the City has achieved significant development milestones relating to the BMRA. The BMRA Development Project commenced in 2016 and comprised two main phases - the airside development works and landside works. Both phases have been completed with the exception of the new terminal building.

The airside works, completed in 2018, comprised the following:

·        Runway: extended from 1800m to 2460m; widened from 30m to 45m and strengthened from PCN 20 to 58;

·        Central apron: expanded from 3 x Code 3C to 4 x Code 4C apron bays;

·        Southern Apron: newly constructed 3 x Code 4C bays and 1x Code 4E bay;

·        Taxiways: newly constructed Code 4E strength Alpha and Bravo;  Charlie upgraded to Code 4C;

·        General Aviation precinct: newly constructed taxiway Delta Code B; 2 x aprons and 34 hangar lots ready for hanger construction and lease;

·        Newly constructed RESAs and runway strip upgraded;

·        Newly installed AGL and double sided PAPIs and Central/Southern Apron lighting;

·        Relocated and upgraded AWIS;

·        Drainage and dam enlarged; and

·        Airside Security fencing ad gates in place.

The landside works completed in March 2019 included:

·        Existing terminal expansion;

·        Newly constructed arrivals hall;

·        New 422 bay public car park and car parking system;

·        Upgraded transport operators car park;

·        Internal road networks and entry statement; and

·        Water, power, and communications services extended/ installed to the BMRA site.

 

Operational developments achieved by the City also included the implementation of Tier 2 classified security screening, new flight paths, and new Wildlife Hazard Management Plan and procedures.

 

In addition to the airside and landside works, the City has developed seven serviced lots available for aviation and/or commercial businesses, four with direct airside access in the BMRA Industrial and Commercial Precinct which are now being advertised through a request for proposal process.

 

The City also secured direct Jetstar domestic RPT services to Melbourne in 2019 which were due to commence in March 2020 however have been delayed as a result of the COVID-19 pandemic and border restrictions that have been in place. Jetstar services are expected to commence in February 2022.

 

Closed charter services supporting mining resources operations in the North West have increased significantly from 12 services per week in 2019 to currently 20 FIFO services a week, with the 2020/2021 financial year recording a high of 40,000 passengers passing through the BMRA.

 

The BMRA has also been designated as the Department of Fire, Emergency Services (DFES) firefighting base for both the Helitac (helicopter) and Large Air Tanker (LAT) aircraft to respond to fire and emergency incidents during the WA bushfire season. The City has leased and licenced DFES to setup fire retardant equipment and base aircraft at the BMRA to ensure a rapid response for Perth and the South West region.

 

The 2021/2022 financial year will see further development with the first three general aviation hangars to be constructed in the General Aviation Precinct, with the expectation that additional hangar construction will follow. The City is also undertaking two capital works projects with extending the central apron to allow for drive in drive out operations on bay 11 and relocating the Royal Flying Doctor Service patient transfer station to the Emergency Precinct.

 

Over the past three years, the City has pursued and delivered significant infrastructure and business development upgrades at the BMRA with positive outcomes to date, and more still to be realised in 2022 onwards.  

 


 

Flight Paths and Noise Abatement Zones

New flight paths were designed and implemented for the commencement of RPT services and use by the larger A320 aircraft. The use of the new flight paths are not mandatory for non-RPT aircraft and hence there is no flight data available at this time to assess how effective the new flight paths have been. The commencement of RPT flights will provide flight and noise data such that the flight paths can be assessed. A review of the BMRA noise contours should also be undertaken once this flight path and noise data is available.

 

A desktop review of the noise abatement zones has been undertaken and officers are proposing not to amend the noise abatement zones at this time as the existing zones include recent urban development areas such as Provence and Via Vasse. However, if the public consultation highlights any new areas not included then this can be reassessed prior to reporting to the OEPA.

 

It is therefore proposed they are reviewed within 12 months from commencement of the RPT services due to start in February 2022.

 

Standard Hours of Operation

The standard hours of operations are considered to be appropriate for the current charter schedules and at this time the proposed RPT flight schedules to commence in 2022. The only potential change that could be considered is to extend the operating hours for Open, Closed Charters, RPT / Commercial Operators from 0600-0000 hours to 0500-0000 hours to provide additional flexibility for the FIFO closed charters. This could be considered a substantial, material change by the OEPA and require updated noise contour and assessment reporting to be provided. While officers believe there is benefit in obtaining the additional flexibility it may be more advantageous to wait until the RPT services have commenced and new N-contour and noise assessment reports are prepared at this time.

 

As such, officers propose no amendments are made to the standard hours of operations at this time and that they are reviewed within 12 months from commencement of the RPT services due to start in February 2022.   

 

Noise Monitoring and Emissions

The City’s Environmental Health department recently completed noise monitoring in August- September 2021 at two locations in the vicinity of the BMRA; one directly to the north and one south of the runway. The noise loggers were positioned to capture aircraft arrivals and departures for both Fokker100 (F100) and A320 aircraft. At the time of the monitoring there were 16 scheduled closed charter flights per week using jet aircraft, of which only two flights per week were using A320 aircraft. The noise monitoring performed in August/September only captured one A320 flight (with a reading of 69.1 LASmax arriving from the south) and hence a representative sample of data is not available for the A320 aircraft.

The data collected, did however provide results for the F100 aircraft which indicated that the highest decibel reading was 79.2 LASmax for a F100 aircraft arriving at 0650 hours from the north of the airport. The average decibel reading for arrivals and departures (including from both the north and the south) in the morning was 70 dB and the average for the afternoon and evening was 72 dB. Based on the noise data collected to date, there have been no exceedances of the maximum decibel level of 85dB as defined in the NMP.

An external consultant has been engaged to assist with further noise monitoring which will commence from the beginning of December for four weeks and capture recordings for the A320 and F100 aircraft. Further noise monitoring will be performed once the RPT services commence in February 2022.

Reviewing the number of non-compliances with the standard hours of operation and also the total number of complaints received over the past three years (table below), officers are of the opinion that noise is being effectively managed through the current NMP and conditions. With respect to the number of noise complaints recorded for 2020/2021, seven of the nine complaints were from one resident and the remaining two complaints from two separate individuals (one relating to a military aircraft and the other to a DFES large air tanker involved in the Perth firefighting operations in 2021, both aircraft operations are exempt under the NMP).

 

Year

# Non-compliances reported

Summary resulting actions

OEPA further action

#  noise complaints / year

17/18

4

All operators contacted and informed of non-compliance

No

8

18/19

3

All operators contacted and informed of non-compliance

No

8

19/20

2

All operators contacted and informed of non-compliance

No

 

 

3

20/21

4

All operators contacted and informed of non-compliance

No

9

 

Based on the above information, officers are of the opinion that aircraft noise is being effectively managed at the BMRA through the existing NMP guidelines. Further noise monitoring is required to be able to make an assessment of the overall noise footprint of the BMRA and comparison against the noise contours and modelling that has previously been completed. This assessment can be completed within 12 months from commencement of the RPT services due to start in February 2022 once additional noise monitoring has been conducted.   

 

Fly Neighbourly Agreement and Flight Training Guidelines

The existing Fly Neighbourly Agreement (FNA) has been in place for the last three years and all operators using the BMRA on a regular basis are requested to sign the FNA. To date no complaints have been received nor have any concerns or issues with operators with not adhering to the FNA been raised. As such, officers propose no change to the FNA.

 

Officers have consulted with the Busselton Aero Club on the Flight Training Guidelines, who are the only flight training operator permitted to operate at the BMRA, and based on their feedback are proposing two amendments to the flight training guidelines.

 

1.    The first proposed change is to amend the aircraft type permitted for flight training from ‘single engine aircraft under 1500kgs MTOW only’ to ‘single engine, non-turbine aircraft only’. The justification is that weight is not necessarily the best metric to use with the noise difference between a 1500kg aircraft and a 2000kg aircraft often being marginal with the main differences in noise resulting from factors such as make and model, engine size, airframe design and modifications.

2.    The second proposed change is to increase the number of flight training hours for each instructor per week from 25 to 35 hours per week. The Busselton Aero Cub have requested this change to allow for efficiency in relation to longer lessons such as navigation training.

 

Officers have no objections to the requested changes. The flight training performed by the Busselton Aero Club does not generate any complaints or concerns from the community and is an important part of their activities that they offer to the community and allows the Club to generate revenue in order to be sustainable into the future.

 

Noise Management Plan (NMP)

The current NMP document is a lengthy and wordy document that was prepared at a time when history and context for the plan was necessary. The NMP has now been in place since 2012 and feedback received from operators is that the document is ‘long’ and ‘difficult’ to find the relevant information for their operations. Hence officers are of the view that a condensed version, incorporating the key criteria for managing noise emissions at the BMRA should be implemented. As such, officers have completed a review and propose the key sections relating to understanding noise, airport operational activities, noise complaints, assessment and monitoring, noise amelioration, communication and consultation, and implementation and review are generally unchanged. However it is proposed that other sections that relate to the development objectives of the NMP, principles and statement of intent are removed as these may be better placed in an airport master plan or more strategic document. The NMP should be succinct document that allows airport users and the community to access the relevant operational and noise information easily. The following table highlights were chapters have been removed or amended:

 

NMP January 2019

NMP Proposed Draft

 

Chapter heading

Section heading

Chapter heading

Section heading

Comment

1. Introduction and Background

 

Introduction

 

Included objectives

 

Noise Context

 

Understanding Noise

 

Changed from “Description of noise and perceived nuisance” to “Definition of sound and noise”

 

Structure of Document

 

 

Removed  - Not needed

 

Background

 

 

Removed to appendix – historical background to BRA and development project

2. Principles and Statement of Intent

Objectives for BRA development

 

 

Removed to appendix – historical background to development project

 

A Balanced Approach

 

Who is responsible for noise?

Removed to appendix – replaced with Context to ICAO and organisations responsible for noise management

 

Limitations

 

 

Removed – included in other sections throughout the document

 

Statement of Intent

 

 

Removed  -  BMRA Strategic objectives and more aligned with Master Plan than NMP


 

3. Management of operational Activities

 

Airport Operational Activities

 

 

Flight Training Guidelines

Aircraft Operations Classifications

Flight Training Guidelines

Aircraft Type

Amended from Single engine aircraft under 1500kgs MTOW only to Single engine non-turbine aircraft only

 

Frequency & Type of Use

Flight Training

 

Instructor cumulative hours changed from 25hrs/week/instructor to 35hrs/week/instructor

Added MS criteria for overflying wetlands

 

Flying heights for Training operations

 

 

Removed CASA guidelines on height restrictions over rural and urban areas  - set by CASA

 

Aircraft Noise management

 

 

Removed – included in Who is responsible for Noise?

 

Activities requiring City approval

 

 

Removed – duplication with Standard hours of operation

 

Approval for Charter and RPT Operations

 

 

Removed – duplication of Standard Hours or Operation

 

Approval for Flight Training or Licence Renewal Training

 

 

Removed – duplication of Standard Hours or Operations & Flight Training Guidelines

4. Noise Complaints

 

Noise Complaints

 

Updated to reflect roles and responsibilities for aircraft noise complaints

5. Noise Assessment & Monitoring

 

Noise Assessment & Monitoring

 

 

 

Noise Monitoring

 

Noise Monitoring

Amended to remove duplication of text and table.

 

Noise modelling

 

Noise Measurement

Updated to reflect better/current wording


 

6. Noise Amelioration

 

 

 

 

 

Noise Context

 

 

Removed – covered in other chapters

 

Noise reduction and Amelioration measures

 

Noise reduction and Amelioration measures

Updated to reflect better/current wording

7. Land Use Planning

 

 

 

Chapter removed as this should be covered in the Airport master Plan and Strategic documents

8. Communication & Consultation

 

Communication & Consultation

 

Updated were relevant

9. Implementation & Review

 

Implementation & Review

 

Updated were relevant

 

Compliance Framework

 

Compliance Framework

Updated to remove Land based activities and Activates in Airspace which are covered in other chapters

 

A tracked changes version of the current BMRA NMP version 2 – January 2019 can be viewed in Attachment A.  A clean version of the draft NMP January 2022 can be viewed in Attachment B.

 

Statutory Environment

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

 

Relevant Plans and Policies

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

·        Ministerial Statement 1088

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

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

 

Financial Implications

The financial implications associated with the officer recommendation are staff time, advertising in the local media and preparation of materials and printing for public consultation, all of which can be funded from the Airport Operations budget.

 


 

Stakeholder Consultation

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

 

Who

Forum

Description

BMRA airline users

Individual meetings

·    Discuss use of flight paths

·    Hours of operations

·    Flight training

·    Noise abatement zones

·    Fly neighbourly agreement

·    Draft revised NMP

BMRA general aviation users

Individual meetings

·    Hours of operations

·    Flight training

·    Noise abatement zones

·    Fly neighbourly agreement

·    Draft revised NMP

Community comment – Draft revised NMP

Local Media; YourSay; City and BMRA website

 

·    Results of review

·    Draft revised NMP

·    Flight paths

·    Noise contours

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

·    Reinscourt

·    Yalyalup

·    Kalgup

·    Yoogarillup

 

By invitations for community access meeting

·    Results from review

·    Draft revised NMP

·    Flight paths

·    Noise contours

 

 

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

Community information session

·    Results from review

·    Draft revised NMP

·    Flight paths

·    Noise contours

·    Information on how to comment/make a submission

Community (Circulation approx. 14,000 residents)

Bay to Bay newsletter

·    General Information

·    Link to website/ Your Say

 


 

Risk Assessment

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

Options

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

1.         Choose not to support the proposed amendments and draft NMP January 2022 for public consultation.

2.         Choose to support specific proposed amendments and a revised draft NMP is advertised for public consultation. 

CONCLUSION

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

           

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Officers will commence consultation with airlines, aviation users of the BMRA and advertise the draft NMP (January 2022) for public comment following Council endorsement.  If further amendments are proposed to the draft NMP, a report will be presented to the AAC in February 2022 outlining the additional amendments consideration. The City is required to report to the CEO of OEPA on the findings of the review of the NMP by 7 April 2022.


Council

269

8 December 2021

12.7

Attachment a

BMRA Noise Management Plan January 2019 Track Changes

 




























































Council

303

8 December 2021

12.7

Attachment b

Draft BMRA Noise Management Plan January 2022

 































Council                                                                                      315                                                          8 December 2021

12.8           Airport Advisory Committee - 1/12/2021 - BUSSELTON MARGARET RIVER AIRPORT - AIRPORT UPDATE

STRATEGIC THEME

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

STRATEGIC PRIORITY

3.4 Develop aviation opportunities at the Busselton Margaret River Airport.

SUBJECT INDEX

Airport Operations

BUSINESS UNIT

Commercial Services

REPORTING OFFICER

Airport Operations Coordinator - David Russell

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

NATURE OF DECISION

Noting: The item is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Nil

 

This item was considered by the Airport Advisory Committee at its meeting on 1/12/2021, the recommendations from which have been included in this report.

 

The committee recommendation was moved and carried.

 

COUNCIL DECISION

C2112/117              Moved Councillor A Ryan, seconded Councillor P Cronin

That the Council receives and notes the Airport Operations Report.

CARRIED 9/0

En Bloc

 

OFFICER RECOMMENDATION

That the Council receives and notes the Airport Operations Report.

 

EXECUTIVE SUMMARY

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

 

BACKGROUND

Focus in the October - November period centred on the bi-annual emergency exercise held on the 16 October, the RAAF / BMRA open day held on 7 November and Request for Quotations (RFQs) for the central apron extension and Royal Flying Doctor Service (RFDS) patient transfer station, together with ongoing business development regarding commercial and leasing opportunities.

 

Aircraft Movements

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

 

The total number of aircraft landings declined in October (309) compared to 2020 (342) and increased from 2019 (248).) Landings for compared to November 2020 landings (207) (November landing figures are due from Avdata Pty Ltd on 21 December 2021).

 

 

Passenger Numbers

October passenger numbers has seen an increase (4,090) compared to October 2020 (3019). This can be attributed to the commencement of services by Alliance Airlines and Network Aviation for FIFO passengers employed by BHP and FMG.

 

Carpark

There are currently 1,128 car park patrons using the FIFO swipe card system, an increase of 103 since October 2021.

 

Car parking statistical figures are not available for this report as SKIDATA technicians are investigating a failure in report generation regarding average car park numbers and maximum patronage.

 

Operations

The focus for the reporting period has focused on:

•          Bi-annual emergency field exercise that was held on 16 October 2021

•          RAAF/BMRA open day held on 7 November 2021

•          Noise Management Plan review

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

•          Business development activities

 

BMRA Open Day / RAAF Centenary

The City of Busselton partnered with the RAAF to host the BMRA Open Day and RAAF Centenary to showcase the airport’s upgraded facilities and give residents and visitors the opportunity to get up close with the Air Force Hawk 127 Lead-In-Fighter Jets, Pilatus PC-21 and a range of other private, commercial and emergency services aircraft. The Open Day was held on Sunday November 7 and was an all-day event with gates opening at 9am and closing at 3.30pm. 

 

The Open Day featured two aerial displays with RAAF PC-21 aircraft and static ground displays of Air Force PC-21 and Hawk 127 Lead-In-Fighter aircraft from RAAF Base Pearce. In addition, there was aircraft displays including Cobham Aviation ASMA Search and Rescue Challenger 604, Surf Lifesaving Western Australia rescue/ shark spotting helicopter, Scenic Helicopters joy flights, Virgin Australia (A320) and Alliance Airlines (F100), and an eclectic display of aircraft organised by Busselton Aero Club. The RAAF provided an excellent display in the arrivals terminal with memorabilia, giveaways, flight simulation stands and recruitment sessions. There was an array of food vans, a bouncy castle for the kids and entertainment for the public to enjoy, DFES fire truck and Australian Army vehicle displays and a free bus service to shuttle people from Bovell oval.

 

It was estimated that 5,500 people attended the event over the day with 35 aircraft also flying in over the weekend with no reported incidents or major complaints, and only positive comments via social media.

 

An event this size is not without considerable organisation, and with the added complexity of COVID-19 and social distancing, face mask wearing exemptions were issued and restrictions on some aircraft operations for the event were applied. 

 

On the evening of Saturday 6 November, Busselton Aero Club hosted an informal BBQ for the aviation community where RAAF 79 Hawk Squadron and two FTS where presented with honorary membership of the Busselton Aero Club and in return were presented with a RAAF 100 year commemorative coin. 

 

The City was also presented with a RAAF 100 year commemorative coin highlighting the history Busselton has had with the RAAF over this 100 years.

 

BMRA Emergency Exercise

On the 16 October 2021 BMRA conducted a bi-annual emergency field exercise to practice and review all or part of the Airport Emergency Plan as required under the Civil Aviation Safety Regulations.

Exercise ABORT TAKEOFF was a field exercise involving all emergency services agencies nominated in the Aerodrome Emergency Plan (DFES, St John, WA Police, and Department of Communities) regarding an aviation emergency incident at the BMRA.

The scenario involved an RPT aircraft with 156 passengers and crew which developed a wheel/undercarriage fire after an aborted take-off. A number of passengers were injured while disembarking down the emergency slides.

These emergency exercises are a good opportunity for emergency services to familiarise themselves with the airport facilities and the environment, and practice/develop their emergency response to an incident at the airport.

Request to investigate Jetty Helicopter Operations

At the 24 October 2021 Airport Advisory Committee (AAC) meeting, a request was made for officers to investigate the feasibility of conducting helicopter operations on the Busselton Jetty and subsequently endorsed by Council (AIR2110/066).

 

Officers have liaised with the Major Projects team to determine that the Jetty is 11m wide and the structure may be able to structurally support helicopter operations. However, under CASA CAAP 92-4(0) Guidelines for the development and operation of off-shore helicopter landing sites, the minimum perimeter of a designated helideck for a Robinson R44 and AS350 Squirrel helicopters (commonly used in local tourism) or equivalent is 12m and therefore the Jetty as it stands would not meet the minimum required criteria for use as a helideck.

 

Further to the width requirements for a helideck, further details containing rotational forces, dynamic load due to impact landing, wind loading, punching shear, obstacle protected surfaces, non-slip surfaces/friction testing, fire-fighting requirements and environmental impact would also require investigation. There is also the question of restrictions of public access to the end of the Jetty during opening hours and the conflicts and operating safeguards that might need to be in place to protect the public. A floating pontoon may be an alternative.

 

KAS helicopter permit

 

As reported at the October 2021 AAC meeting, Ballina Corporation P/L trading as KAS helicopters approached the City In September with a proposal to operate helicopter scenic flights from the BMRA.

 

Acknowledging the previous AAC resolution, a permit has now been approved by the CEO including the following conditions:

•          Flight operations permitted Monday – Friday 8.00am to 5.00pm and Saturday - Sunday 9.00am to 5.00pm

•          Minimum flight duration 20 minutes

•          No flights allowed on Good Friday, Christmas day and Anzac day

•          Monthly reports to be provided to the City of Busselton on all flights (times and duration)

•          Flight operations in accordance with the BMRA Noise Management

•         Signed Fly Neighbourly Agreement

•         Signed BMRA Conditions of Use

•         No flight training without training permit

•         Alternate departure direction where possible (wind dependent)

•         Provide an emergency response plan and insurance

•         Use of the grass helicopter parking area located in front of the central hangar

KAS helicopters have agreed to these conditions and are expected to commence operations on 1 December 2021.

 

OFFICER COMMENT

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

 

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

 

The summer maintenance programs have commenced now the ground water table has subsided including mowing and spray programs, and apron/ runway line marking maintenance will be a focus over the summer period.

 

Statutory Environment

The BMRA operates in accordance with the following:

•          Aviation Transport Security Act 2004

•          Aviation Transport Security Regulations 2005

•          CASA Manual of Standards 139 (Aerodromes)

•          City of Busselton Transport Security Plan

•          Ministerial Statement 1088

•          City policies and procedures

Relevant Plans and Policies

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

•          Busselton Margaret River Airport Noise Management Plan 2019.

 


 

Financial Implications

Airport revenue up to the end of October 2021 is $636,546 compared to the amended year to date budget of $727,498. The reason for revenue being less than expected is due to outstanding Virgin Australia Regional Airline’s (VARA) passenger fees estimated at $45,000 for September, and no airport screening fees due to the delay to RPT operations. Landing fees and car park revenue are higher than expected due to additional FIFO flights commencing this financial year.

 

Expenses (excluding screening services, depreciation and airline attraction) to the end of October 2021 are $184,334 compared to the amended October 2021 expense budget of $256,812. Lower expenses are attributed to delays in consultancy expenses.

 

Stakeholder Consultation

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

 

Risk Assessment

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

Options

The Council may choose not to receive and note the Airport Operations Report.

CONCLUSION

The airport summer grounds work maintenance is well under way including mowing and line marking programs.  RFQs for the central apron expansion and RFDS Patient transfer station relocation have been drafted and are due to be advertised in the last week of November. Officers will continue to provide a high level of customer service ensuring the airport is compliant, safe and security is maintained throughout.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Council                                                                                      321                                                          8 December 2021

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  

 

The officer recommendation was moved and carried.

 

COUNCIL DECISION

C2112/118              Moved Councillor A Ryan, seconded Councillor P Cronin

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.

CARRIED 9/0

En Bloc

 


 

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.   


Council

322

8 December 2021

14.1

Attachment b

Dunsborough Lakes Sports Precinct Layout Plan

 


Council                                                                                      329                                                          8 December 2021

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  

 

The officer recommendation was moved and carried.

 

COUNCIL DECISION

C2112/119              Moved Councillor A Ryan, seconded Councillor P Cronin

 

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.

CARRIED 9/0

En Bloc

 


 

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 to the following adopted plan or policy:

·        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

330

8 December 2021

15.1

Attachment a

Reserve 46187 Lot 488 Marine Terrace - Old Tennis Club Location

 

 


Council                                                                                      333                                                          8 December 2021

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  

 

The officer recommendation was moved and carried.

 

COUNCIL DECISION

C2112/120              Moved Councillor A Ryan, seconded Councillor P Cronin

 

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 Meeting 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

CARRIED 9/0

EN BLOC

 


 

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

335

8 December 2021

17.1

Attachment a

Current SAT Reviews

 



Council

338

8 December 2021

17.1

Attachment b

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