Council                                                                                      2                                                                23 February 2022

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 23 February 2022

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. 7

Previous Council Meetings. 7

8.1          Minutes of the Council Meeting held 9 February 2022. 7

8.2          Minutes of the Annual General Meeting held 31 January 2022. 7

Committee Meetings. 7

8.3          Minutes of the Meelup Regional Park Committee held 7 February 2022. 7

8.4          Minutes of the Finance Committee held 9 February 2022. 7

9.        RECEIVING OF Petitions, Presentations AND DEPUTATIONS. 8

10..... QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN (WITHOUT DISCUSSION). 8

11..... Items Brought Forward.. 9

Adoption by Exception Resolution.. 9

12.1        Finance Committee - 9/2/2022 - LIST OF PAYMENTS MADE - DECEMBER 2021. 10

12.2        Finance Committee - 9/2/2022 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 DECEMBER 2021. 20

14.1        PROPOSAL TO EXCISE PORTION OF CROWN RESERVE 26513 FOR AMALGAMATION WITH LOT 1, 142 GIFFORD ROAD, DUNSBOROUGH.. 54

17.1        COUNCILLORS' INFORMATION BULLETIN.. 76

ITEMS TO BE DEALT WITH BY SEPARATE RESOLUTION (WIThOUT DEBATE). 81

16.1        BUDGET AMENDMENT - ADDITIONAL LOAN FACILITY. 81

18..... Motions of which Previous Notice has been Given.. 86

19..... urgent business. 87

19.1        COMMERCIAL LEASE - PORTION OF LOT 73 (38) PEEL TERRACE. 87

20..... Confidential Reports. 92

21..... Closure. 93

 

 

                                                 


MINUTES

 

MINUTES OF A Meeting of the Busselton City Council HELD IN Council Chambers, Administration Building, Southern Drive, Busselton, ON 23 February 2022 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

Mr Paul Needham, Director, Planning and Development Services

Mrs Naomi Searle, Director, Community and Commercial Services

Mr Tony Nottle, Director, Finance and Corporate Services

Mrs Emma Heys, Governance Coordinator
Ms Jo Barrett-Lennard, Governance Officer



Apologies:

 

Nil

 

 

Approved Leave of Absence:

 

Nil




Media:

 

“Busselton-Dunsborough Times”

“Busselton-Dunsborough Mail”

 

Public:

8

 

3.               Prayer

Nil

4.               Application for Leave of Absence 

 

Nil

 

5.               Disclosure Of Interests

 

Nil

 

6.               Announcements Without Discussion

Announcements by the Presiding Member

 

Nil

 

7.               Question Time For Public

 

Prior to the Public Question Time commencing the Mayor advised that the questions taken on notice at the previous meeting had been circulated and would be tabled in the minutes.

Response to Previous Questions Taken on Notice

 

The following questions were taken on notice by the Council at the 9 February 2022 Ordinary Council meeting.

 

7.1             Mr Don Evill

 

Question

Can you confirm that the City has approximately 600 non-compliance complaints that have not been actioned? Is there a time limit they have to be actioned?

 

Response

(Provided by Mr Paul Needham, Director Planning and Development Services)

It is not known where the figure of 600 has come from.


The following, however, is a breakdown of key development compliance workload-

·         There are over 1,600 private swimming pools in the District. Once every four years, pool  fencing must be inspected, meaning an average of 400 pools must be inspected annually.

·         There are currently 27 approved extractive industry sites in the District. Each of those is inspected on a bi-annual basis and, where significant compliance issues are identified, remedial action is required.

·         There are approximately 150 other matters which have not yet been closed out, but only a relatively small proportion of those are requiring active investigation. Staff are currently working actively to close-out matters no longer requiring investigation.

The priority given to compliance matters and the approach taken is guided by the City’s Council adopted Compliance Policy.

 

Question Time for Public

 

7.3             Mr Keith Sims

 

Question

Why did Council vote to proceed with the BPACC, based on a business case containing assumptions, including the creative industries and the income to be generated by it, which is now not part of the project?

 

Response

(Mrs Naomi Searle, Director Community and Corporate Services)

The draft operations budget that was an attachment to the Business Case excluded any revenues for the creative industries hub. When we were advised by the State Government that we were unsuccessful in our funding application, the creative industries hub was excluded from the financial operations model.

 

 

7.4             Mr Gordon Bleechmore

 

Question

Why has the City taken to grading the Wonnerup beach access carpark every week over the last six months, and is there plans to seal the car park to protect it?

 

Response

(Mr Oliver Darby, Director Engineering and Works Services)
We will take that question on notice.

 

Question

There have been cameras placed near the toilets at the Wonnerup beach access car park, however they don’t appear to be positioned to take vision of the car park. What is the purpose of the cameras?

 

Response

(Mr Tony Nottle, Director Finance and Corporate Services)
We will take that question on notice.

 


Question

What is the City doing to stop the honing at the Wonnerup beach access car park that is occurring on almost a nightly basis?

 

Response

(Mayor Grant Henley)
That would be a matter for the Police.  

 

 

7.5             Mr Jeff Forrest

 

Question

Twice in April last year my garden shed was flooded by water coming down from Yungarra Drive. I reported this to Council, but it has not been acted upon. What is the City going to do to rectify the issue?

 

Response

(Mr Oliver Darby, Director Engineering and Works Services)
We will take that question on notice.

 

 

7.6             Mr Gordon Bleechmore

 

Question

At the special electors meeting on Monday 21 February 2022, you advised Councillors not to vote on the motions presented by the electors. Why?

 

Response
(Mayor Grant Henley)

I advised the Councillors that voting at the Electors Meeting may prejudice their sitting in consideration of the motions at a future meeting.

 

      The following information was provided by Officers after the meeting:


Local Government (Administration) Regulations 1996
s17

17. Voting at meeting (Act s. 5.31)
(1) Each elector who is present at a general or special meeting of electors is entitled to one vote on each matter to be decided at the meeting but does not have to vote.

 

Local Government Act 1995 s5.32

(1)    All decisions made at an electors’ meeting are to be considered at the next

ordinary council meeting or, if that is not practicable —
    (a) at the first ordinary council meeting after that meeting

 

 


Question

Some of the geo-fabric groins at Wonnerup Beach have been removed, possibly by vehicles driving over them.  What is the City going to do to rectify this? 

               

Response

(Mr Oliver Darby, Director Engineering and Works Services)

After the bags were initially installed, there was a vehicle that drove over that caused some damage that was repaired. I am not aware of the bags having been moved or removed.

 

8.               Confirmation and Receipt Of Minutes

Previous Council Meetings

8.1          Minutes of the Council Meeting held 9 February 2022

COUNCIL DECISION

C2202/026               Moved Councillor P Carter, seconded Councillor P Cronin

That the Minutes of the Council Meeting held 9 February 2022 be confirmed as a true and correct record.

CARRIED 9/0

 

8.2          Minutes of the Annual General Meeting of Electors held 31 January 2022

COUNCIL DECISION

C2202/027               Moved Councillor P Carter, seconded Councillor P Cronin

 

That the Minutes of the Annual General Meeting of Electors held 31 January 2022 be noted.

CARRIED 9/0

 

Committee Meetings

8.3          Minutes of the Meelup Regional Park Committee Meeting held 7 February 2022

COUNCIL DECISION

C2202/028               Moved Councillor K Cox, seconded Councillor M Love

 

That the Minutes of the Meelup Regional Park Committee held 7 February 2022 be noted.

CARRIED 9/0

 

8.4          Minutes of the Finance Committee Meeting held 9 February 2022

COUNCIL DECISION

C2202/029               Moved Councillor A Ryan, seconded Councillor S Riccelli

 

That the Minutes of the Finance Committee Meeting held 9 February 2022 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, with the exception of the items identified to be withdrawn for discussion, the remaining reports, including the Committee and Officer Recommendations, will be adopted en bloc, i.e. all together.

 

COUNCIL DECISION

C2202/030               Moved Councillor A Ryan, seconded Councillor P Cronin

 

That the Committee Recommendations for Items 12.1 and 12.2 and Officer Recommendations for items 14.1 and 17.1 be carried en bloc:

 

12.1      Finance Committee – 9/2/2022- LIST OF PAYMENTS MADE – DECEMBER 2021

 

12.2       Finance Committee – 9/2/2022 – FINANCIAL ACTIVITY STATEMENTS – YEAR

                TO DATE AS AT 31 DECEMBER 2021

 

14.1       PROPOSAL TO EXCISE PORTION OF CROWN RESERVE 26513 FOR AMALGAMATION WITH Lot 1, 412 GIFFORD ROAD, DUNSBOROUGH

 

17.1        COUNCILLORS INFORMATION BULLETIN

CARRIED 9/0

en bloc

 

 


Council                                                                                      11                                                             23 February 2022

12.             REPORTS OF COMMITTEE

12.1           Finance Committee - 9/2/2022 - LIST OF PAYMENTS MADE - DECEMBER 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 - December 2021

 

This item was considered by the Finance Committee at its meeting on 9/2/2022, the recommendations from which have been included in this report.

The committee recommendation was moved and carried.

COUNCIL DECISION

C2202/031               Moved Councillor A Ryan, seconded Councillor P Cronin

That the Council notes payment of voucher numbers M119051 – M119120, EF083913 – EF084495, T7581 – T7583, DD004694 – DD004726, as well as payroll payments, together totaling $9,864,944.02

CARRIED 9/0

en bloc

 

OFFICER  RECOMMENDATION

That the Council notes payment of voucher numbers M119051 – M119120, EF083913 – EF084495,
T7581 – T7583, DD004694 – DD004726, as well as payroll payments, together totaling $9,864,944.02

EXECUTIVE SUMMARY

This report provides details of payments made from the City’s bank accounts for the month of December 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 December 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 December 2021 is presented for information.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Council

14

23 February 2022

12.1

Attachment a

List of Payments - December 2021

 









Council                                                                                      22                                                             23 February 2022

12.2           Finance Committee - 9/2/2022 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 DECEMBER 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   Investment Report - December 2021

Attachment b    Loan Schedule - December 2021

Attachment c    Financial Activity Statement - December 2021

 

This item was considered by the Finance Committee at its meeting on 9/2/2022, the recommendations from which have been included in this report.

The committee recommendation was moved and carried.

COUNCIL DECISION

C2202/032               Moved Councillor A Ryan, seconded Councillor P Cronin

That the Council receives the statutory financial activity statement reports for the period ending 31 December 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 December 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 December 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 December 2021

The Statement of Financial Activity (FAS) for the year to date (YTD) shows an overall Net Current Position of $25.1M as opposed to the budget of $8.2M. This represents a positive variance of $16.9M 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

 

1.35%

942,012

123,560

1.    Other Revenue

355,662

173,677

414,950

104.78%

181,985

(50,848)

Expenses from Ordinary Activities

 

9.68%

4,256,390

457,990

2.    Materials & Contracts

(7,556,019)

(9,314,319)

(20,245,296)

18.88%

1,758,300

442,163

3.    Utilities

(1,103,808)

(1,262,415)

(2,774,773)

12.56%

158,607

48,912

4.    Other Expenditure

(1,624,424)

(3,279,641)

(9,685,100)

50.47%

1,655,217

252,687

5.    Non-Operating Grants, Subsidies and Contributions

822,048

8,425,155

34,850,687

(90.24%)

(7,603,107)

(2,279,675)

Capital Revenue & (Expenditure)

 

40.50%

16,522,641

2,128,430

6.    Land & Buildings

(558,928)

(10,761,885)

(22,802,632)

94.81%

10,202,957

1,873,523

Plant & Equipment

(577,445)

(1,291,000)

(2,890,000)

55.27%

713,555

879,800

Furniture & Equipment

(147,665)

(549,191)

(828,800)

73.11%

401,526

211,515

Infrastructure

(7,758,393)

(17,917,605)

(38,537,750)

56.70%

10,159,212

582,799

7.    Proceeds from Sale of Assets

0

407,627

776,071

(100.00%)

(407,627)

(212,532)

8.    Proceeds from New Loans

25,000

0

15,450,000

100.00%

25,000

25,000

9.   Total Loan Repayments – Principal

(1,493,816)

(1,751,889)

(3,839,418)

14.73%

258,073

116,749

10.  Advances to Community Groups

(25,000)

0

(5,450,000)

(100.00%)

(25,000)

(25,000)

11.  Transfer to Restricted Assets

(6,974,494)

0

(21,740)

(100.00%)

(6,974,494)

(1,580,263)


 

12.  Transfer from Restricted Assets

2,657,233

0

1,735,682

100.00%

2,657,233

637,191

13.  Transfer from Reserves

1,852,060

2,326,832

39,544,446

(20.40%)

(474,772)

(474,772)

 

Revenue from Ordinary Activities

In total, revenue from Ordinary Activities is very close to budget at only 1.20% ahead YTD.  There is however two material variance items requiring comment.

                                   

1.      Other Revenue

Ahead of YTD budget by $182K, or 104.8%, 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

48,181

15,931

32,250

202.43%

2,795

10100

Long Service Leave Re-imbursements from other LG’s

25,999

 -

25,999

(100.00%)

 -

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

Community and Commercial Services

24,405

2,385

22,020

923.26%

28,715

10625

Art Geo – Sale of Artworks

17,726

 -

17,726

(100.00%)

17,726

This line is cleared out by year end i.e. sales proceeds are on-paid to the artists.  There was a delay in on-paying December’s sales due to Art Geo Administration moving premises, plus staff being on leave.

Engineering and Works Services

223,023

89,437

133,586

149.36%

(81,675)

G0030 & G0031

Busselton & Dunsborough  Transfer Station – Sale of Scrap Materials

219,088

86,701

132,387

152.69%

(80,500)

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 November 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 differences).

 

 


Expenses from Ordinary Activities

Expenditure from ordinary activities is $4.3M, or 9.7%, less than expected when compared to the budget YTD as at December. 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.

 

2.     Materials & Contracts

Less than YTD budget by $1.76M.  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

808,472

1,142,027

333,555

29.2%

(95,386)

10000

Members of Council

93,816

64,042

(29,774)

(46.5%)

(80,867)

Overspend YTD is due mainly to a catch up in the monthly allocation of prepaid memberships and registrations for such things as WA Regional Councils Alliance, that were held back and paid later than expected.  There was also an undetected system issue that prevented the November allocation from being processed until December.

10105

Business Systems Improvement Team

 -

15,876

15,876

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

118,463

148,353

29,890

20.1%

6,419

Variation between YTD actual and budget is mainly due to:

·        Postage $15.8K 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

·        Bank charges $26.2K under budget as the charges have come a lot less than expected.

·        Legal expenses $22.1K over budget due to a substantial increase in debt recovery proceedings. This expenditure is fully recovered from the property owner/s.

·        Consultancy $8.4K under budget due to the rating review project that this budget is for only just now commencing.  There will be under underspend in this area offset by a possible overspend in wages, as an internal resource has been seconded to the project to help defray external consulting costs.

10200

Financial Services

18,874

51,417

32,543

63.3%

5,611

Savings to budget are as a result of bank charges not coming in at the level expected, and some budgeted subscriptions either being cancelled, allocated to more appropriate areas, or spread over the year rather than hitting one month per the way the budget was set (based on historical cashflows, rather than accrual accounting).

10250

Information & Communication Technology Services

420,560

510,502

89,942

17.6%

(72,968)

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 on a monthly basis with the new prepaid expenses allocation process that has been adopted to more accurately reflect proper accrual accounting practices, however it should resolve by year end.

10500

Legal and Compliance Services

16,901

61,572

44,671

72.6%

4,423

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

16,374

58,062

41,688

71.8%

6,725

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

30,709

84,596

53,887

63.7%

9,787

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.

R0305

Creekview Road Reserve 12492 (Lot 501)

 -

14,276

14,276

100.0%

6,546

Due to a controlled burn, certain activities such as targeted flora and fauna surveys have not been able to be conducted.  Alternative animal monitoring and habitat surveys are now planned to be undertaken by the end of the financial year, however there still should be an overall underspend of approximately $7K.

Community and Commercial Services

672,397

1,370,917

698,520

51.0%

230,637

10380 & 10381

Busselton & Dunsborough Libraries

51,942

108,663

56,721

52.2%

8,297

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

(155)

51,659

51,814

100.3%

23,376

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

10543

Community Development

787

60,075

59,288

98.7%

 -

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.

10590

Naturaliste Community Centre

23,182

39,883

16,701

41.9%

11,125

Invoice timing for consumables and program delivery.  Current commitments of 10k offset the majority of variance to date.

10600

Busselton Jetty Tourist Park

220,432

299,005

78,573

26.3%

19,381

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

38,775

53,501

14,726

27.5%

4,584

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

19,294

93,300

74,006

79.3%

61,017

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

10900

Cultural Planning

8,217

22,084

13,867

62.8%

14

Awaiting confirmation of further grant monies before engagement of consultants.

11151

Airport Operations

95,877

393,771

297,894

75.7%

87,222

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)

19,309

43,485

24,176

55.6%

(311)

Variance YTD is due to:

·    $9k allocated for future commitments;

·    $10k of allocated budget for consultants to be used for wages to fund Dunsborough youth Saturday night program;

·    Planned crime prevention grant funding spending has been deferred to January 2022;

·    Planned expenditure for mental health week was cancelled, with the budgeted funds to be  allocated to a future event;

·    No expenditure on furniture as to date - this will be allocate to The Break Dunsborough youth space.

Planning and Development Services

413,073

355,391

(57,682)

(16.2%)

48,681

10805

Planning Administration

5,707

20,970

15,263

72.8%

1,701

Computer software license renewals have either not as yet been received, so no allocations for these costs have occurred, or those that have, have been spread over the term of the licence rather than all in one hit at time of payment.

10820

Strategic Planning

36,719

78,806

42,087

53.4%

6,886

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.    

10925

Preventative Services - CLAG

79,200

59,900

(19,300)

(32.2%)

(5,490)

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

160,389

29,648

(130,741)

(441.0%)

13,416

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.

Various

Bushfire Brigades

34,870

18,996

(15,874)

(83.6%)

(669)

In preparing for the fire season a large amount of PPE has been purchased in readiness for dispersal to BFB as required.  This occurred earlier than historical budget trends. 


 

Engineering and Works Services

5,661,760

6,442,829

781,069

12.1%

257,971

10830

Environmental Management Administration

147,535

219,544

72,009

32.8%

88,499

Due to the restructure in this area there are numerous activities that have not commenced in the timeframe as planned.

11170

Meelup Regional Park

40,135

140,418

100,283

71.4%

17,400

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

147,523

187,504

39,981

21.3%

10,694

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

174,956

450,914

275,958

61.2%

(1,797)

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 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

91,150

125,077

33,927

27.1%

(53,145)

Bridge Maintenance works are largely scheduled to occur post-Christmas and in the later part of the financial year when water levels are at their lowest. Planning for these works is well underway and the downward trend in the YTD variance ($53K reduction in December) is expected to continue in the coming months.

Various

Waste Services

1,064,877

1,342,931

278,054

20.7%

76,452

$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

598,389

445,539

(152,850)

(34.3%)

39,667

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.     

Various

Reserves, Parks & POS Maintenance

894,898

1,059,891

164,993

15.6%

65,032

Underspend on reserves is linked to a number of cost codes including R0310 Eastern Link Landscape areas (project recently completed and maintenance only just commencing), R0315 Vasse Village Centre (which has only recently been handed over to the city from the developer and contractor engaged), Dunsborough Lakes Sporting Precinct (project not yet completed by Major Projects) and a number of new Dunsborough Lakes cost codes (some not yet been handed over to the City).


 

Various

Other Infrastructure Maintenance

1,062,577

1,308,050

245,474

18.8%

166,448

The underspend is mainly attributable to:

·    Consultant/contractors in Engineering, Operations & Waste Services Administration - $103K;

·    Street Lighting Maintenance (including LED’s and rural intersections) - $108K;

·    CBD area maintenance in both Busselton & Dunsborough - $25K;

·    Noxious Weeds & Pest treatments in POS and reserves - $35K

 

3.      Utilities

         Underspent compared to budget YTD December by $159K, or 12.6%, due to:

Natural Account

YTD Budget

YTD Actual

Variance 

Comments

3500 - Electricity

819,612

807,869

11,743

The actual billing cycle is out of sync with how the budget timing was set.  It is unlikely that there will be a significant cost savings by year end against budget.

3505 - Gas - Reticulated

2,449

928

1,521

Immaterial

3506 - Gas - LPG Bottled

8,283

11,571

(3,288)

Main cause is the GLC – There has been an increased LPG demand due to geothermal heating issues.  This variance has since corrected itself and as of January we are back on track, and unlikely to exceed budget by year end.

3507 - Gas - Alinta Boiler Gas (BJTP)

1,894

1,367

527

Immaterial

3510 - Water Consumption

123,003

50,912

72,091

High use of Water usually happens over the summer months.  Plus billing is not every month.   Water Corp bill’s every 60 days and BSN Water bill 3 times a year.  There is also approximately $25K in refunds due to overcharges on our billings from Water Corp.

3511 - Water Meter Rental & Supply Charge

27,502

32,502

(5,000)

Charge for Airport accounts for $3200 of the $5000 variance – generally there are variances across the board.

3512 - Water Rates

0

0

0

N/A

3513 - Sewerage Volume Charges

30,674

11,104

19,570

Budget included $5.9K for the Goose – no charge recorded as it has burnt down and is not operating.

3514 - Sewerage Charge (Rates)

89,394

52,907

36,487

Annual charges are now spread over the period they relate to, rather than hitting the budget all in one go.

3520 - Office Telephones, Faxes & Internet

48,242

45,645

2,597

Recently the City has been migrating to better and cheaper fixed line services.  This is starting to show cost savings.


 

3521 - Public WIFI

19,848

23,599

(3,751)

The budget was requested for YCAB and Foreshore only, however, the libraries, admin building and NCC, who have this facility, were mistakenly omitted from initial budget considerations.

3522 - Mobile Devices Costs

49,730

26,637

23,093

The City moved to cheaper mobile phone and mobile data plans with Telstra in 2021.  This has led to significant cost savings in this area.

3524 - Other Telecommunication & Network Costs

41,784

38,766

3,018

Similar reason to the above commentary in fixed line and mobiles.

1,262,415

1,103,808

158,607

 

4.      Other Expenditure  

$1.7M, or 50.5%, 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

761,718

2,381,337

1,619,619

68.0%

300,565

10532

BPACC Operations

(350)

25,000

25,350

101.4%

12,500

BPACC operational activity will not commence until 2023.

10543

Community Development

54,509

112,950

58,441

51.7%

(44,339)

This relates to the first three rounds of Community Assistance Program. Round 1 and 2 approvals were combined due to Council elections and round 3 closed on 30 November.

From the first 3 rounds $133,873 is committed with actual expenditure to be seen in first quarter of 2022. Timing is largely dependent on CAP Applications received from community groups.

10558

Events

453,210

727,465

274,255

37.7%

77,860

We are waiting on a number of events to invoice us for event sponsorships. 

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.

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

84

1,150,556

1,150,472

100.0%

191,592

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%

 -

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, however we have not received practical completion on the works, and there are still some outstanding works in progress.

 

5.      Non-Operating Grants, Subsidies & Contributions  

The negative variance of $7.6M 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 completed 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

 -

115,376

(115,376)

(100.0%)

(48,975)

10540

Recreation Administration

 -

51,250

(51,250)

(100.0%)

(25,625)

10590

Naturaliste Community Centre

 -

46,700

(46,700)

(100.0%)

(23,350)

C6010

Airport Fencing Works

 -

17,426

(17,426)

(100.0%)

 -

Engineering and Works Services

765,048

8,248,779

(7,483,731)

(90.7%)

(2,174,700)

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

 -

3,415,500

(3,415,500)

(100.0%)

(1,138,500)

B9612

Churchill Park Renew Sports Lights –

State Capital Grant

 -

72,850

(72,850)

(100.0%)

(72,850)

B9999

Donated Buildings

30,000

 -

30,000

100.0%

 -

F0084

Thompson Way - New Path - Contributions

36,818

 -

36,818

100.0%

 -

F0112

Causeway Road Shared Path – State Capital Grant

 -

80,000

(80,000)

(100.0%)

 -

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

 -

748,000

(748,000)

(100.0%)

(374,000)

S0335

Kaloorup Road – MR Capital Grant

 -

240,950

(240,950)

(100.0%)

(120,475)

S0336

Wildwood Road – MR Capital Grant

 -

937,750

(937,750)

(100.0%)

(468,875)

 

6.      Capital Expenditure  

As at 31st December 2021, there is an underspend variance of 70.4%, or $21.5M, in total capital expenditure, with YTD actual at $9M against the YTD budget of $30.5M. 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

25,002

22,403

89.6%

5,239

10610

Property Services Administration

2,599

25,002

22,403

89.6%

5,239

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

556,330

10,736,883

10,180,553

94.8%

1,868,285

B9614

Dunsborough Lakes Sporting Precinct-Pavilion /Changeroom Facilities

10,425

75,000

64,575

86.1%

(10,425)

There has been minimal expenditure to date as works have not yet commenced. The design is currently under review to achieve budget alignment.  A Council briefing scheduled in February to review and discuss.

B9012

Civic and Administration Building Replacement of Cladding

1,004

40,000

38,996

97.5%

19,461

Cladding replacement commencing in January 2022.

B9300/1/2

Aged Housing

Capital Improvements

35,250

143,700

108,450

75.5%

32,990

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.


 

B9591

Performing Arts Convention Centre

21,945

9,210,455

9,188,510

99.8%

1,529,713

The contract has been awarded to Broad Constructions with works commencing in late January/early February.

B9596

GLC Building Improvements

67,999

142,568

74,569

52.3%

56,804

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

B9605

Energy Efficiency Initiatives (Various Buildings)

90,791

137,910

47,119

34.2%

21,552

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

B9610

Old Butter Factory

17,991

4,000

(13,991)

(349.8%)

(15,991)

The YTD overspend is due the retention monies owing to the contractor on final completion, not being fully factored into the carry-over budget requirements for this project.

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

73,562

212,850

139,288

65.4%

 -

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.

B9613

GLC CCTV Installation

29,921

 -

(29,921)

(100.0%)

(29,921)

The budgeted works were completed much earlier than originally anticipated.  There will also be a considerable saving against the overall $50K budget.

B9615

Naturaliste Community Centre AMP

(495)

28,800

29,295

101.7%

14,895

Works are delayed due to market pressures – demand for trades and materials is outstripping supply.

B9616

Buildings Asset Management Plan High Use Allocation

52,336

30,000

(22,336)

(74.5%)

14,571

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 due to a change in contractor availability. Variance due to timing of works.

B9617

Buildings AMP Renewal Allocation - Meelup Ablution

7,386

40,000

32,614

81.5%

34,136

The Meelup project is being recommended for deferral due to a mix of unforeseen design complexities, and to allow time to assess the impact of other water saving initiatives at Meelup.  Once analysed, a direction on the final scope of the project can be made.


 

B9622

Dunsborough Youth Centre Building Construction

15,604

 -

(15,604)

(100.0%)

27,670

$15K has been expended earlier than expected on an additional complimentary mobile building (including transport and installation), to the one that was donated to the City.  The total year budget for the project is $80K, so this amount represents a timing variance.

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.

B9720

BMRA Hangars

 -

210,000

210,000

100.0%

210,000

This is a timing issue - the RFT has just closed and will be evaluated and (if) awarded, works should commence by mid-February.

B9808

Busselton Jetty Tourist Park Upgrade

4,314

25,000

20,686

82.7%

25,000

Timing Issue - capital works upgrades that cannot be done until after Easter (the tourist season).

Plant & Equipment

577,445

1,291,000

713,555

55.3%

879,800

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%

 -

Vehicle has been ordered, delivery due in February.

10630

Economic and Business Development Administration

 -

75,000

75,000

100.0%

 -

The budget relates to the replacement vehicle for the Manager Economic and Business Development, and the Events Co-Ordinator.  Not yet ordered.

10810

Statutory Planning

 -

35,000

35,000

100.0%

 -

Vehicle has been ordered, delivery due in February.

10920

Environmental Health Services Administration

 -

40,000

40,000

100.0%

 -

The budget relates to the replacement vehicle for the Manager Regulatory Services.  Not yet ordered.

11001

Engineering Services Administration

 -

35,000

35,000

100.0%

35,000

Vehicle not yet ordered.

11107

Engineering Services Design

 -

140,000

140,000

100.0%

70,000

Survey equipment and 2 x vehicles ordered, 1 x vehicle delivered in January, survey equipment and 1 x vehicle expected to be delivered in February.

11151

Airport Operations

 -

15,000

15,000

100.0%

15,000

Slasher (tractor mounted) not yet ordered.

11401

Transport – Workshop

 -

10,000

10,000

100.0%

 -

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

11404

Plant Purchases (P12)

 -

185,000

185,000

100.0%

185,000

2 x light trucks not yet ordered.

11500

Operations Services Administration

 -

40,000

40,000

100.0%

40,000

Vehicle ordered, not yet delivered.

Furniture & Office Equipment

147,665

549,191

401,526

73.1%

211,515

10250

Information & Communication Technology Services

87,576

220,891

133,315

60.4%

220,891

Underspend is due to not yet ordering ICT asset replacement items. This is due to be ordered in the coming month though actual invoices may not be received for some time due to global supply chain issues.

10558

Events

 -

200,000

200,000

100.0%

 -

The budget YTD represents the carry-over from the 20/21 year for the electronic billboard. The tender closed with three responses, all of which have come in over the forecast budget. The tender was not awarded and options on how to proceed were discussed with MERG at the November meeting. The tender is to be restructured with options and will be reissued in the new year.

10590

Naturaliste Community Centre

16,326

43,300

26,974

62.3%

850

The budget represents a carry-over from 20/21 for the purchase of replacement fitness equipment.  Procurement of this equipment is now planned for December to February.

10625

Art Geo Administration

 -

10,000

10,000

100.0%

20,000

The previous spend showing in this line was an incorrect allocation of a different award, and has been moved to the appropriate budget.  The budget now showing is an Art Geo Award that has not as yet been paid.

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.

B1000

Administration Building- 2-16 Southern Drive

 -

14,000

14,000

100.0%

14,000

This is a budget timing issue.  Orders have been placed totalling approximately $10.5K, with the remaining $3.5K expected to be spent by EOFY.

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.

B1450

Depot Building-Busselton

17,776

 -

(17,776)

(100.0%)

(17,776)

Expenditure was for 8 sit-to-stand workstations at the depot administration building.  There is no budget in this particular line, however it is offset by considerable savings in other areas, and is funded from the Furniture & Office Equipment Reserve.


 

Infrastructure

7,758,393

17,917,605

10,159,212

56.7%

582,799

Various

Roads

2,763,348

5,288,306

2,524,958

47.7%

293,304

The majority of road construction happens during the months October to April, however in discussions with Council in September/October 2021, it was decided that the current capital works program would be spread over 18 months extending into the 2022/23 financial year.  Some projects that were to be contracted have been put on hold given the heated state of the economy.

·    27% of the YTD variance valued at $739k is associated with the Regional Road Safety Program which is providing sealed road shoulders on Wildwood Road (now complete), Chapman Hill Road (in progress) and Kaloorup Road.

·    30% of the YTD variance valued at $746k is associated with the Peel Terrace/ Queen street roundabout renewal works which are scheduled to commence in late February.

·    18% of the YTD variance valued at $505k is associated with both the Sugarloaf Road upgrade – rescheduled to 2022/23 financial year and major works on the Bussell Highway that are currently in progress.

·    1000m (SLK 1.50 to 2.50) of Boalia Rd reconstruction has been rescheduled to 2022/23 financial year due to delays in environmental permitting.

Various

Bridges

 -

1,444,000

1,444,000

100.0%

 -

Major bridge works are completed by Main Roads, with financial recognition of works often not occurring until late in the financial year.

To date works have been completed on the Bussell Highway bridge #241 and the Yallingup Beach Road bridge #3347.

Tuart Drive bridge #0238 is in progress and is scheduled for completion in March 2022.

Other major bridge works are currently out for tender by Main Roads with works possibly to be undertaken towards the end of summer 2022, subject to contractor and material availability. 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 will continue to increase until invoices for works are provided by Main Roads.

Various

Car Parks

448,262

1,420,860

972,598

68.5%

99,177

82% of the YTD variance valued at $800k is associated with the Dunsborough Lakes Sporting Precinct (Stage 1) – Car parking project. The tender for these works have been awarded with works to commence henceforth.

The following two projects have been put on hold adding to the YTD variance by the amount provided.

·        Dunsborough Chieftain Crescent Carpark Extension $59.6k

·        Forth Street Groyne Carpark $45.9k

Various

Footpaths & Cycleways

506,348

933,638

427,290

45.8%

71,502

29% of the YTD variance valued at $124K is associated with the Buayanup Drain Shared path project that is complete. 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.

47% of the YTD variance valued at $202K is associated with;

·    $89k being the Barnard East Development which is in progress

·    $58k being continuation of the Busselton CBD Footpath Renewal also in progress

·    $55k Carey Street footpath scheduled for construction during February and March.

Parks, Gardens & Reserves

3,946,149

8,552,006

4,605,857

53.9%

20,337

Various

Busselton Jetty - Capital Expenditure

114,465

408,786

294,321

72.0%

52,869

Major Maintenance works are scheduled to take place on the Jetty between late October and 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

80,016

1,136,800

1,056,784

93.0%

58,400

74% of the variance valued at $777k is attributable to both the stage 2 West Busselton & Forth Street seawall works. A report to Council in late January resulted in a decision to only proceed with the West Busselton works at this time.

19% of the variance values at $200k is associated with a Coastal Adaptation project re the Mitigation of Coastal Flooding that is still in its planning phase.

Various

Waste Services

264,329

952,500

688,171

72.2%

193,350

The majority of this variance is associated with budgets that were carried over from the previous year with 43% being the Liquid Waste Pond Renewal, and percentages in the 20s associated with Busselton Landfill Post-Closure Capping , Rehab & Remediation, as well as the Lined Landfill Stage 2. Earthworks on these projects have continued on during the construction period , resulting in expenditure more in-line with the YTD forecast. $82K of the YTD variance is with respect to works on a Depot Washdown Facility Upgrade that remains in the planning phase, as does the $50,000 for Capital site improvements and Regional Waste Hub developments.

Various

Townscape & Vasse River

35,748

315,464

279,716

88.7%

118,805

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

3,451,590

5,738,456

2,286,865

39.9%

(403,086)

There are 45 individual Parks & Gardens capital projects budgeted this financial year ranging in value from between a mere $1.8k to $2.118m.

·    42% of the YTD variance valued at $ 1.447m is associated with the Dunsborough Lakes Sporting Precinct project and the new Non-Potable Water Network.

·    21% of the YTD variance totaling $740k is comprised of a further 12 projects that have a YTD variance in excess of $40k. Most of these projects are underway, have committed costs or are due to commence in the coming months.

Various

Drainage

13,090

70,400

57,310

81.4%

34,960

The YTD variance to budget is largely associated with the Carey Street drainage upgrade project which is scheduled for construction during February and March.

Various

Regional Airport & Industrial Park Infrastructure

81,197

208,396

127,198

61.0%

63,519

YTD actual 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 $408K. This is due to the continuing delays in delivery of acquisitions, and the associated transfer to auction of the vehicles being replaced.  Some vehicles that were planned to be traded/auctioned have also been retained and redeployed instead. 

 

8.     Proceeds from New Loans

         During the month a Community Group loan was drawn for the Dunsborough Bay Yacht Club for $25K.  At the time of setting the budget, an amount of $200K in total was forecast to be available for self-supporting loans for Community Groups, however it is impossible to predict when and to what extent applications will be submitted to the City.  This is 100% offset by the actual outgoing advance of the funds to the community group.

 


9.     Total Loan Repayments - Principal

         Repayments of the principal on loans is $258K under budget YTD, due to the loan for the BPACC not proceeding in timeframe as budgeted.

10.   Advances to Community Groups

         During the month a Community Group loan was drawn for the Dunsborough Bay Yacht Club for $25K.  Per above, although not possible to predict when these loans will be applied for, the negative variance is 100% offset by the positive variance in proceeds from New Loans.

 

11.   Transfer to Restricted Assets  

There is a YTD variance in transfers to Restricted Assets of $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 $6.2, have been received and transferred to Restricted Assets for which there was no budgeted transfer:

·    $50K for the Causeway Road Shared Path Project from the Department of Transport;

·    $3M 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;

·    $60K 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;

·    $25K 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;

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

·    $330K from the Department of Primary Industries & Regional Development’s Community Stewardship Program, for the removal of sediment in the lower Vasse river;

·    $250K from Rio Tinto for the BPACC project;

·    $30K from the Department of Primary Industries & Regional Development’s Small Grants Program 2021 for the upgrade of the women’s change rooms at Bovell Sports Park;

·    $150K from the WA Waste Authority for the “Tip Shop” development;

·    $30.8K from the Department of Local Government, Sport and Cultural Industries for the “Creative Art for Heart” initiative; and

·    $17.4K from the Department of Transport, from the RADS program, for the perimeter fencing at the airport.

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 $1.5M has been received YTD, including $428K for road works bonds and $530K for caravan park deposits.

 

12.   Transfer from Restricted Assets

YTD there has been $2.7M transferred from Restricted Assets into the Municipal Account. This was mainly attributable to $605K of Bushfire Mitigation Activity funds that did not need to be restricted, $200K from Department of Primary Industries & Regional Development used for CCTV expansion and training of hospitality workers, $40K from Department of Education & Training for traineeships and $1.9M of various roadworks grant & bond funding that has been utilised.

 

13.   Transfer from Reserves

The YTD variance of $475K less being transferred from reserve to the municipal account is due to non-completion of certain reserve funded activities.  The main contributor being the Fourth Street Sea Wall project, with those funds to now be directed to a slightly different sea wall project in the same area.

 

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 31st December 2021 the value of the City’s invested funds are $91.9M, down from $94.4M as at 30th November 2021.

 

The decrease is due to a withdrawal of $2.5M from 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) to provide funds for standard operations. 

 

As at 31st December 2021 the 11AM account balance is $4.0M, down from $6.5M as at 30th November 2021 due to the above withdrawal.

 

During the month of December four term deposits totalling the amount of $14M matured. These were renewed for a further 113 days at 0.33% on average.

 

The official cash rate remains steady for the month of December 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 a Community Group loan was drawn for the Dunsborough Bay Yacht Club for $25K.  The attached Loan Schedule outlines the status of all existing loans as at December YTD.

 


Chief Executive Officer – Corporate Credit Card

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

 

Date

Payee

Description

$ Amount

16/12/21

SANCTUARY GOLF RESORT

MEAL -SOUTHWEST CEO MEETING

35.70

21/12/21

ESPLANADE HOTEL, BUSSELTON

SMG CHRISTMAS LUNCH

254.80

 

 

TOTAL

$290.50

 

Donations & Contributions Received

During the month no donations or contributions were received.

 

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 December 2021, the City’s net current position stands at $25.1M. The City’s financial performance is considered satisfactory, and cash reserves remain strong.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.  


Council

40

23 February 2022

12.2

Attachment a

Investment Report - December 2021

 


Council

41

23 February 2022

12.2

Attachment b

Loan Schedule - December 2021

 


Council

46

23 February 2022

12.2

Attachment c

Financial Activity Statement - December 2021

 












 


Council                                                                                      61                                                             23 February 2022

14.1           PROPOSAL TO EXCISE PORTION OF CROWN RESERVE 26513 FOR AMALGAMATION WITH LOT 1, 142 GIFFORD ROAD, DUNSBOROUGH

STRATEGIC THEME

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

STRATEGIC PRIORITY

2.8 Plan for and facilitate the development of neighbourhoods that are functional, green and provide for diverse and affordable housing choices.

SUBJECT INDEX

Land Administration

BUSINESS UNIT

Engineering and Facilities Services

REPORTING OFFICER

Land and Infrastructure Officer - Andrew Scott

AUTHORISING OFFICER

Director, Engineering and Works Services - Oliver Darby

NATURE OF DECISION

Advocacy: to advocate on its own behalf or on behalf of its community to another level of government/body/agency

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Aerial photograph of Lot 1, 142 Gifford Road

Attachment b    Aerial photograph of Lot 171 of R26513

Attachment c    R26513 details report

Attachment d   Feature survey

Attachment e    Photographs

Attachment f    Sketches of Options A and B

Attachment g   Stakeholder consultation

Attachment h   Sketch of proposal  

 

The officer recommendation was moved and carried.

COUNCIL DECISION

C2202/033               Moved Councillor A Ryan, seconded Councillor P Cronin

That the Council endorses excision of an area up to 68 square metres from Lot 171 of Crown Reserve 26513 (R26513) for amalgamation with adjoining Lot 1 on Deposited Plan 56001, 142 Gifford Road, Dunsborough (Lot 1), subject to the owners of Lot 1 committing in a legal document to:

1.         restoring an area of R26513 to the satisfaction of the City;

2.         constructing a fence along the new boundary between Lot 1 and R26513 to the satisfaction of the City; and

3.         paying for all costs associated with the excision.

CARRIED 9/0

EN BLOC

OFFICER RECOMMENDATION

That the Council endorses excision of an area up to 68 square metres from Lot 171 of Crown Reserve 26513 (R26513) for amalgamation with adjoining Lot 1 on Deposited Plan 56001, 142 Gifford Road, Dunsborough (Lot 1), subject to the owners of Lot 1 committing in a legal document to:

1.         restoring an area of R26513 to the satisfaction of the City;

2.         constructing a fence along the new boundary between Lot 1 and R26513 to the satisfaction of the City; and

3.         paying for all costs associated with the excision.

EXECUTIVE SUMMARY

Lot 1, 142 Gifford Road, Dunsborough (Lot 1) is a residential lot that adjoins Lot 171 of Crown Reserve 26513 (R26513), a reserve for the purpose of “Public Recreation”.

A portion of the residence on Lot 1 encroaches over the lot boundary and onto R26513 (refer to Attachments A and D).  To address the issue of the encroachment, the owners of Lot 1 have made a request to the City for a portion of R26513 to be excised from the reserve and amalgamated with Lot 1.

Notices of the proposal inviting submissions were sent to the owners and occupiers of nearby property, and to public service providers.  The proposal was also advertised in the local newspaper and on the City’s website.

This report recommends that an area not exceeding 68m2 is excised from R26513 and amalgamated with Lot 1 (refer to Attachment H), subject to owners committing to several conditions.

 

BACKGROUND

Lot 1, 142 Gifford Road, Dunsborough

Lot 1 on Deposited Plan 56001 is a 1736m2 lot located at 142 Gifford Road, Dunsborough (refer to Attachment A).  Lot 1 was created from the amalgamation of Lots 90 and 91 on Plan 7393.  Survey Plan 7393 was approved during 1961.

 

The current owners of Lot 1 purchased Lot 90 during 1988 and Lot 91 during 1999.  Deposited Plan 56001 was approved on 4 October 2010 for the amalgamation of Lots 90 and 91 into Lot 1.

 

Aerial photography taken May 2001 shows the residence on Lot 1 as constructed today (i.e. part encroaching onto the adjoining reserve) (see Attachment A).  City officers were not able to find records of the building plans for the residence.  Based on the design and materials of the construction, it is likely the residence was constructed during the 1970s.

 

The owners of Lot 1 have advised the City they were not aware that the residence encroached over the lot boundary when they purchased the property.  The owners also advised that they intend to continue living in the residence but would like the security of complete ownership of the land should they decide to sell.  It is for this reason that the owners lodged a request to excise portion of R26513 for amalgamation with Lot 1.

 

On the City of Busselton Local Planning Scheme Zoning No. 21, Lot 1 is zoned Residential, R15.

 

Crown Reserve 26513

Crown Reserve 26513 (R26513) consists of Lots 168 and Lot 171 on Plan 7393, and is a reserve for the purpose of “Public Recreation” (originally gazetted during 1962).  Lot 171 adjoins the residential Lot 1 so is the subject of this report.  The area of Lot 171 is 7261m2 and it extends from near Hannay Lane (west) to Gifford Road (east) (refer to Attachment B).

 

The City of Busselton has care, control and management responsibility of R26513 due to a vesting order granted to the City (refer to Attachment C).

 

Dugalup Brook runs through the length of R26513.  A shared path along the southern side of Dugalup Brook connects Hannay Lane to Gifford Road.  The path runs through a children’s playground area, a popular community supported area that forms part of the Dunsborough town centre.

 


The northern side of the Dugalup Brook (as it passes through Lot 171) is well treed.  A lawn area separates the brook from the residential development to the north, where permeable fencing allows passive surveillance of the reserve from the courtyards of the residences.  Public access along this northern side of the brook through to Gifford Road is presently obstructed by a gate extending from the residence of Lot 1 and a hedge along the verge of Gifford Road.

 

Extent of the encroachment onto R26513

Referring to the feature survey (Attachment D), approximately 21m2 of the Lot 1 residence (to the eave line) encroaches onto R26513.  A Colorbond fence located next to a metal shed near the southern corner of Lot 1 encroaches approximately 13m2 onto R26513.  Additionally, the front yard of Lot 1 extends approximately 74m2 into R26513, as a gate, fence and a hedge along the road verge limits public use of the area.  The combined area of the encroachment of Lot 1 onto R26513 is approximately 107m2.

 

Not shown on the feature survey is what appears to be a half corrugated metal tank lying next to the bank of the Dugalup Brook.  Also of note, is an ivy plant and kikuyu grass which are spreading into bank of the brook and into the trees.

 

Photographs of the area may be seen in Attachment E.

 

Dugalup Brook and foreshore management

In addition to managing R26513 for public recreation purpose, management responsibilities of the reserve include management of the bed and banks of the Dugalup Brook, and management of the foreshore as it extends beyond the top of the bank.  Managing the foreshore helps to stabilise the bank from erosion.

 

A suitable width for a “foreshore reserve” is not easily defined as it depends on many factors including the dynamics of the waterway and the need to access the area with plant and equipment to maintain and repair the bank. As a general guide, where foreshore management reserves are created as a condition of subdivision, foreshore reserves for rivers and lakes should be  30m wide (Western Australian Planning Commission Policy No. DC 2.3 “Public open space in residential areas”, May 2003).  This width is not practicable for the Dugalup Brook foreshore but any proposal to lessen the width of the foreshore should consider the ability to effectively manage the foreshore.

 

The top of the bank tends to veer towards the residence and the closest point is the eastern corner of the residence, where the residence encroaches onto R26513.  At this point the gap between the residence and the top of the bank is narrowest (refer to Attachment D).

 

Dugalup Brook and Aboriginal Heritage

Dugalup Brook is listed on the DPLH Aboriginal Heritage Database under place identifier 21307 as lodged with a resolution pending further information.  Part of the eastern corner of Lot 1 falls within the same listing.

OFFICER COMMENT

NOTE: All measurements (distances, areas, etc.) expressed in this “officer comment” section are subject to survey.

 

It is likely that the residence was constructed over 40 years ago, prior to when the current owners purchased the property.  While the owners may not have been aware at the time of purchase that the residence encroached into the reserve, the issue became apparent when a survey was done for a land amalgamation plan (of Lots 90 and 91 on Plan 7393 to form Lot 1) submitted to the Western Australian Planning Commission during 2007.

 


Two options for proposed area to be excised from R26513

This report presents two options (A and B) for an area of land that might be excised from R26513.  The two options are derived by using the two existing survey points of the Lot 1 boundary with R26513, and adding a third point near the corner of the external wall of the residence.  Adding just one point (a third point) to a proposed survey simplifies the survey and the fence line.

 

The proposed third point is near where the residence encroaches the most onto the reserve.  Coincidentally, this third point is also near where the residence is closest to the top of the bank of the Dugalup Brook as the brook deviates more northerly near Lot 1.

 

Option A is the proposal that was advertised for public submissions.  Option A is where the third point is placed 1.5m from the corner of the external wall (refer to Attachment F) and would result in an area of 77m2 to be excised from the reserve.  1.5m was used for Option A as the Residential Design Codes (State Planning Policy 7.3) require a minimum boundary setback of 1.5m from a wall of a habitable room with a major opening (such as a window or door).

 

Option A places the third point (at 1.50m from the external wall corner) would be just 2.9m from the top of the bank of Dugalup Brook (and 1.9m from the base of a paperbark tree).  This would be the narrowest point of R26513 along the northern side of Dugalup Brook (refer to Attachment F), limiting public use of the reserve and the City’s ability to manage the foreshore.  Should, for example, the community require a path along the northern side of Dugalup Brook, a narrow pedestrian path might be feasible, noting that there should be separation between the path and the top of the bank, and between the path and the lot boundary, but options for a shared path (typically minimum width of 2.5m) may be limited.  As outlined in the Stakeholder Consultation section of this report, loss of public reserve was raised in submissions received.

 

Option B has the third point at 1.05m from the corner of the external wall (refer to Attachment F), resulting in an area of 68m2 to be excised from the reserve.  At 1.05m, the boundary would be 450mm from the line of the eave, which is a standard taken from the Building Code of Australia for the minimum distance (for fire safety) from the lot boundary to the line of the fascia board of the roof.


Option B places the third point at 3.3m from the top of the bank of the Dugalup Brook (and 2.3m from the base of a paperbark tree).

 

The two options are summarised in the following table.

Option

Proposed area to be excised from R26513

Total area amalgamated with Lot 1

Distance of third point to top of bank

Distance of third point to corner of external wall

Distance of third point to base of paperbark tree

A

77m2

1813m2

2.89m

1.50m

1.9m

B

68m2

1804m2

3.32m

1.05m

2.3m

Table 1.  Summary of options for proposed area to be excised from R26513

 

For reference, the distance from the current lot boundary to the top of the bank is 6.46m.  With respect to the encroachment of the residence, the corner of the external wall is 2.13m from the current lot boundary (noting the Residential Design Codes would generally require an extra 1.5m from the lot boundary to the external wall), and the line of the eave is 2.85m from the current lot boundary.

 

Option A provides more useable space between the external wall of the residence on Lot 1 and the proposed lot boundary, but narrows the foreshore width at the third point to just 2.89m, limiting the public uses of the reserve and the ability to manage the foreshore. 

Since the residence was constructed 40 to 50 years ago, there does not seem to have been a demand for recreational use of the land (near the residence) or issues with management of the foreshore.  From that perspective, excising portion of R26513 to resolve the encroachment issue seems reasonable.  However, officers consider that an area of the land should be retained for foreshore management purposes.

 

It is coincidental that the point where the residence encroaches the most into the reserve is also where the top of the bank deviates most towards the residence.  This allows little flexibility for a new lot boundary between the residence and the top of the bank, so that there is reasonable space between the fence line and the residence, and reasonable space for foreshore management.

 

With the proposed lot boundary at 1.05m from the corner of the external wall of the residence the fence would be approximately 450mm from the edge of the eave and there would be a gap of approximately 3.3m from the fence to the top of the bank.  This is considered a reasonable compromise given the circumstances and therefore Option B is the option that is recommended by this report.

 

Surveillance of public open space and fencing

The Western Australian Planning Commission planning documents “Liveable Neighbourhoods, Draft 2015” and “Designing Out Crime, June 2006” recommend surveillance of public open spaces and other measures to reduce crime and antisocial behaviour.

 

The City of Busselton Local Planning Policy document No. 1.1 “Lots adjoining public open space” requires boundary fencing with public open space to be visually permeable for the length of the common boundary, with “a preference for open steel grill construction fencing with or without masonry piers”.

 

A visually permeable boundary fence would allow for passive surveillance from the residence to the reserve area and would make the fence consistent with other residential property that adjoins R26513.  Lighting should be considered along the reserve near Lot 1 to improve public security, particularly where the width of the foreshore (between the lot boundary and the top of the bank) is at its narrowest.

 

Restoration of the reserve and recreational use of the area

While the area of R26513 adjacent to Lot 1 is generally well maintained, there are a few items that should be addressed so that the area is suitable for use as a public recreation reserve and ongoing maintenance by the City.  These include:

·        Removal of the hedge along Gifford Road to allow public access to the reserve and installation of bollards to restrict vehicle access to the reserve from Gifford Road; Removal of any structures and other things that are from Lot 1 and placed on the reserve;

·        Removal of exotic species of plant and grass growing into the bank of the brook;

·        Otherwise bringing the reserve area to a standard that is consistent with the remainder of the reserve along the northern side of Dugalup Brook.

Any work to restore the reserve area should be mindful of the Aboriginal Heritage status of the land and the Department of Planning, Lands and Heritage document “Aboriginal Heritage Due Diligence Guidelines”, Version 3, 30 April 2013.

A bond or legal document to be taken/developed and finalised with the landowners prior to the City making any request to the Minister for Lands in order to ensure the above noted works are completed.


The public may currently access the northern side of Dugalup Brook by walking over the turfed area from Hannay Lane towards Gifford Road.  Opening an access past Lot 1 to Gifford Road would allow walkers to complete a circuit along both sides of the brook from Hannay Lane to Gifford Road, perhaps making the walk more interesting and encouraging more people to make use of R26513 for its intended purpose.

Furthermore, as the residential population grows and as more visitors are attracted to the region, there is likely to be a proportional increase in the demand for passive recreational activities, particularly near the Dunsborough town centre.

 

Other items for consideration

Other items to resolving the issue of the encroachment that have been considered are:

·    A lease over portion of R26513 for the encroachment of the residence onto the reserve -  DPLH advised that it is not supportive of a lease.

·    The Building Code of Australia might allow the proposed lot boundary to be located closer to the residence, maximizing the width of the foreshore (between the proposed lot boundary and the top of the bank of the Dugalup Brook).

·    Altering the building such as the roof line and external wall may further reduce the requirement for Crown land to be excised.


Should the Council or the Minister for Lands decide not to excise portion of R26513 for amalgamation with Lot 1, the owners of Lot 1 might consider demolishing the building; or they might seek legal advice.

 

As it is, the encroachment of the residence onto Crown land may complicate the sale of Lot 1 until the issue is resolved, which is a reason for the request from the property owner.

Statutory Environment

The Land Administration Act 1997 relates to the administration of Crown land including Crown Reserves.

Although the City has management responsibility over R26513, the reserve is Crown land.  As such, a proposal to excise portion of R26513 requires the consent of the City before a request may be made to the Minister for Lands for their consideration pursuant to the Land Administration Act 1997.


Regarding payment for the Crown land (should the proposal proceed), DPLH value the Crown land and the adjoining property owner would need to pay that amount (to State Revenue) before the Crown land may be transferred.  Other costs associated with the proposal such as surveying, statutory charges and other fees may also be payable.


Relevant Plans and Policies

The City of Busselton Local Planning Policy document No. 1.1 “Lots adjoining public open space” is relevant to this matter.

 

Financial Implications

There are no financial implications associated with the officer recommendation.

 


Stakeholder Consultation

The proposal to excise portion of Crown Reserve 26513 was advertised in the 29 October 2021 edition of the Busselton Dunsborough Times.  Approximately 100 letters were sent to owners and occupiers of property within the vicinity of the proposal, and the proposal was placed on the Yoursay page of the City’s website for submissions.  Also notified of the proposal were public utilities, the Department of Planning, Lands and Heritage, and the Department of Water and Environmental Regulation.

Submissions to the proposal are listed in Attachment G.

Five submissions were received to the proposal from residents of the district.  Of the five, three submissions objected to the proposal with the main objection being the Crown Reserve land should remain as public open space and for the conservation of flora and fauna.

One submission did not object to the proposal provided trees are not removed to facilitate access to the reserve through to Gifford Road, and the area north of Dugalup Brook remains accessible for a future shared path noting pressures on the current shared path south of Dugalup Brook.

In one submission, the respondent queried whether the proposal was part of an adverse possession claim over Crown land and about payment for the Crown land should the land be excised and amalgamated with the adjoining lot.  In relation to adverse possession, the reporting officer understands that Crown land is not affected by virtue of section 76 of the Limitation Act 2005.


Payment has been discussed under ‘Statutory Environment’.

Risk Assessment

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

No risks of a medium or greater level have been identified.

Options

As an alternative to the proposed recommendation the Council could:

1.         Increase the area to be excised to no more than 77m2 (i.e. add a third point at 1.5m from the corner of the external wall).  This option is referred to as Option A under the officer comment section and is the proposal that was advertised for public submissions. 

2.         Ask the owners of Lot 1 to consider investigating an alternative proposal (including altering the building) that minimizes the requirement for land to be excised from adjoining Crown Reserve 26513 while ensuring the proposal complies with the Building Code of Australia.  This is likely to be at significant cost and impact to the owners and without any guarantee that the proposal would be supported by the City or the Minister for Lands.

3.         Not support the proposal to excise portion of the reserve.  This will not provide the owners of Lot 1 with any surety over the ownership of their property where it encroaches onto Crown Reserve 26513.


CONCLUSION

This report recommends that the Council supports a proposal to excise up to 68m2 of Crown Reserve 26513 for amalgamation with Lot 1 (refer to Attachment H).

The Council’s support for the proposal should be subject to the owners of Lot 1 committing to restoring an area of the reserve, constructing a fence on the new lot boundary, and paying for all costs associated with proposal.

The recommendation is a pathway towards resolving an issue that has been outstanding possibly since the 1970s.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The proposal to excise portion of Crown Reserve 26513 may be forwarded to the Department of   Planning, Lands and Heritage (for the Minister for Lands) within eight weeks of the Council resolution, but this timeline may depend on the owners of Lot 1 making commitments in accordance with the resolution.

 


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23 February 2022

14.1

Attachment a

Aerial photograph of Lot 1, 142 Gifford Road

 


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23 February 2022

14.1

Attachment b

Aerial photograph of Lot 171 of R26513

 


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23 February 2022

14.1

Attachment c

R26513 details report

 



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23 February 2022

14.1

Attachment d

Feature survey

 


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23 February 2022

14.1

Attachment e

Photographs

 




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23 February 2022

14.1

Attachment f

Sketches of Options A and B

 



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23 February 2022

14.1

Attachment g

Stakeholder consultation

 




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23 February 2022

14.1

Attachment h

Sketch of proposal

 

 


Council                                                                                      77                                                             23 February 2022

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   Letter from Department of Communities - Thank You for Opening GLC as Evacuation Centre

Attachment b    Letter from Dunsborough and Districts Country Club - Master Planning  

 

The officer recommendation was moved and carried.

 

COUNCIL DECISION

C2202/034               Moved Councillor A Ryan, seconded Councillor P Cronin

 

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

 

17.1.1      Minor Donations Program – January 2022

 

17.1.2      Current Active Tenders

 

17.1.3    Letter from Department of Communities – Thank you for Opening GLC as Evacuation  Centre

 

17.1.4      Letter from Dunsborough and Districts Country Club – Master Planning

CARRIED 9/0

EN BLOC

OFFICER RECOMMENDATION

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

17.1.1    Minor Donations Program – January 2022

17.1.2       Current Active Tenders

17.1.3    Letter from Department of Communities – Thank you for Opening GLC as Evacuation  Centre

 

17.1.4      Letter from Dunsborough and Districts Country Club – Master Planning

 

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       Minor Donations Program – January 2022

The Council allocates an annual budget allowance to the Minor Donations Program. This is provided such that eligible groups and individuals can apply for and receive sponsorship to assist them in the pursuit of endeavors that bring direct benefit to the broader community.

 

Allocation of funds is delegated to the Chief Executive Officer, in accordance with the published guidelines and funding availability.

 

One application was approved in January 2022, totaling $600, as outlined below:

 

Recipient

Purpose

Amount

Busselton Pride Alliance Inc.

Busselton Queer Pride Film Festival

The Busselton Pride Alliance will host three films over two days at the Weld Theatre, as an offshoot of the annual Queer Film Festival in Perth, that has been successfully running for six years.

 

$600

 

17.1.2       Current Active Tenders

Note: Information in italics has previously been provided to Council, and is again provided for completeness.

EOI 01/21 SOUTH WEST REGIONAL WASTE MANAGEMENT SERVICES

·        Requirements – a waste management expert to provide solutions to participating local governments in the South West of WA for sustainable, long term management of municipal solid waste. 

·        An expression of interest on behalf of a number of South West regional local governments was advertised on 30 September 2021, closing on 25 November 2021. 

·        12 submissions were received. 

·        An evaluation panel has reviewed the submissions and is finalising a report to the CEOs of the South West Regional local governments.

RFT 24/21 BUSSELTON MARGARET RIVER AIRPORT – GENERAL AVIATION HANGARS

·        Requirements – a suitable Contractor to design and construct four general aviation hangar sheds at the Busselton Margaret River Airport. 

·        A request for tender was advertised on 22 December 2021, closing on 25 January 2022.

·        3 submissions were received. 

·        An evaluation panel is reviewing the submissions.

·        The value of the contract will fall within the CEO’s delegated power for accepting tenders. 

 


17.1.3       Letter from Department of Communities – Thank You for Opening GLC as Evacuation Centre

This letter comes as a thank you from the Department of Communities to the City for its assistance with opening the Geographe Leisure Centre for the recent bushfires.

 

See Attachment A.

 

17.1.4       Letter from Dunsborough and Districts Country Club – Master Planning

This letter informs the City of the Dunsborough and Districts Country Club’s Strategic and Master Planning progress, some of the difficulties the club has faced recently, and requests that the City continue to work with the club in developing their Master Planning project.

 

See Attachment B.

 


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23 February 2022

17.1

Attachment a

Letter from Department of Communities - Thank You for Opening GLC as Evacuation Centre

 


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23 February 2022

17.1

Attachment b

Letter from Dunsborough and Districts Country Club - Master Planning

 

 

 


Council                                                                                      81                                                             23 February 2022

ITEMS TO BE DEALT WITH BY SEPARATE RESOLUTION (WIThOUT DEBATE)

16.1           BUDGET AMENDMENT - ADDITIONAL LOAN FACILITY

STRATEGIC THEME

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

STRATEGIC PRIORITY

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

SUBJECT INDEX

 

BUSINESS UNIT

Finance and Corporate Services

REPORTING OFFICER

Director Finance and Corporate Services - Tony Nottle

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Nil

 

The officer recommendation was moved and carried.

 

COUNCIL DECISION

C2202/035               Moved Councillor P Cronin, seconded Councillor K Cox

That the Council agrees to:

1.         Amend the 2021/21 Annual Budget to borrow a further $10 million over a period of up to 20 years for the purposes of funding the construction of the Busselton Performing Arts and Convention Centre; and

2.         Authorise the CEO to advertise Council’s intent to borrow $10 million in the 2021/22 financial year to fund the Busselton Performing Arts and Convention Centre over a period of up to 20 years in accordance with Section 6.20(2) of the Local Government Act 1995.


CARRIED 8/
1

For: Cr Henley, Cr Carter, Cr Cronin, Cr Paine, Cr Richards, Cr Love, Cr Cox, Cr Riccelli

Against: Cr Ryan

BY ABSOLUTE MAJORITY

OFFICER RECOMMENDATION

That the Council agrees to:

1.         Amend the 2021/21 Annual Budget to borrow a further $10 million over a period of up to 20 years for the purposes of funding the construction of the Busselton Performing Arts and Convention Centre; and

2.         Authorise the CEO to advertise Council’s intent to borrow $10 million in the 2021/22 financial  year to fund the Busselton Performing Arts and Convention Centre over a period of up to 20 years in accordance with Section 6.20(2) of the Local Government Act 1995.


EXECUTIVE SUMMARY

The 2021/22 Annual Budget has allocated an amount of $10 million in borrowings for the Busselton Performing Arts and Convention Centre (BPACC) Project. These loans (two separate $5 million loans) have been taken out with the Western Australian Treasury Corporation (WATC) in January 2022.


Council requires (up to) an additional $16.5 million in loan funds to complete the Busselton Performing Arts and Convention Centre (BPACC). Data surrounding interest rates indicates a rising trend and therefore this report seeks Council’s approval to amend the City’s Annual Budget to draw down the bulk of these additional funds within the 21/22 year and to undertake associated administrative processes.

BACKGROUND

In the 2020/21 financial year, Council had anticipated the commencement of the BPACC Project and allocated in the 2020/21 Annual Budget a $7.5M loan to meet funding requirements. The project was subsequently delayed and as a result, the City did not borrow the funds.

 

Council adopted its 2021/22 Annual Budget (Budget) on the 26 July 2021. Included within the Budget was the capital project for the Busselton Performing Arts and Convention Centre (BPACC) which included loan borrowings to the amount of $10 million. At its meeting on the 24 November 2021, Council awarded tender RFT 22/21 Construction of the BPACC, to Broad Construction with a construction contract value of $38 million. As outlined in the report the City will fund the project with borrowings of up to $26.5 million.

 

In accordance with the Budget, City staff have already undertaken the necessary applications and provided information to the WATC to establish the budgeted $10 million loan facility for the BPACC.

 

As a result the City executed two loan facilities on 24 January 2022 for the BPACC project as follows:

1. Loan 225 - $5 million over 10 years at a fixed interest rate of 2.099%

2. Loan 226 - $5 million over 15 years at a fixed interest rate of 2.3855%

 

During the development of the Budget, the goal was to maximise savings by utilising low interest rates and only taking out the loan when the funds were required. This was to be regularly reviewed while City staff monitored the indicative interest rates from the Western Australian Treasury Corporation (WATC). It appears through this monitoring that interest rates are on the rise and given the City has the ability to lock in interest rates for the life of the loan, it would be prudent to consider borrowing the remaining funds as soon as possible to avoid cost escalation of borrowing costs. 

OFFICER COMMENT

Analysts are predicting up to four interest rate rises in the next 12 months, and Reserve Bank Governor Philip Lowe stated on 2 February 2022 in an interview with the Sydney Morning Herald:

 

“…Interest rates will go up. And the stronger the economy, the better progress on unemployment, the faster and the sooner the increase in interest rates will be.”

 

The benefit that the City has when borrowing from the WATC is that the interest rate is fixed for the life of the loan. It therefore makes sense to lock in future borrowings required for the BPACC Project as soon as possible.

 


As at 15 February 2022, the WATC current indicative rates for 10, 15 and 20 years are as follows:

 

10 years                2.48%

15 years                2.75%

20 years                2.95%

 

The City’s Draft Long Term Financial Plan (LTFP) has factored in an estimated interest rate of 3% for the remaining $16.5 million required to fund the project. There is a risk that interest rates will continue to rise throughout the year, which in turn could see a higher interest rate applied to the remaining borrowings.

 

An upward trend has occurred in the period from November 2021 to February 2022 based on the WATC indicative interest rates as depicted in the graph below.

 

 

In order to reduce the risk of escalating interest rates, Council is requested to consider applying for a further $10 million in loan funding within the 2021/22 financial year, rather than waiting to include this funding in its 2022/23 annual budget as per the original funding plan. Council would be required as per Section 6.20(2) of the Local Government Act 1995 to advertise of its intention to borrow any funds that were not included within its adopted budget.

 

Council is requested to consider borrowing over a period of up to 20 years, to allow for potential long term savings, should a shorter term be manageable.

 

As the City aims to reduce the amount of borrowings required where possible and is still waiting on the outcomes of some grant funding applications, it is proposed that only an additional $10 million be borrowed this financial year. The remaining $6.5 million can be considered during the development of the 2022/23 Annual Budget, subject to grant funding that may reduce the amount. Council could also supplement this with the use of its existing cash Reserves.

 

Statutory Environment

Section 6.20 (1) allows a local government to borrow money or obtain credit to perform its functions.

 

To meet statutory requirements, Council must agree by absolute majority to amend the budget to include additional loan borrowings of $10 million and associated loan repayments and must also advertise Council’s intentions for a period of one month.




Relevant Plans and Policies

Borrowing costs for the BPACC Project are in line with previous and draft Long Term Financial Plan projections.

 

Council’s Loan Facilities Policy section 5.8 states that the Council will not borrow funds if the Debt Service Coverage Ratio (Debt Ratio) is outside the basic standard prescribed by the Department of Local Government, Sport and Cultural Industries (the Department).

 

As at 30 June 2021 the City’s Debt Ratio was 5.824. The estimated projected Debt Ratio with the full $26.5 million predicted loan borrowings as per the draft LTFP for the BPACC Project is 3.02. This estimated result falls well above the Department’s minimum standard of 2.0.

 

Financial Implications

As City staff executed Loans 225 and 226 ($10 million in total) in the second half of the financial year, there is a saving of approximately $270,000 for payments not required in the first half of 2021/22. Therefore no additional costs will be incurred in 2021/22 to service the proposed new loan of $10 million.

 

At an estimated interest rate of 2.95% over 20 years, the loan repayments would cost approximately $165,930 per quarter. The loan would be taken out towards the end of the financial year, therefore the City would only need to service one payment for the 2021/22 financial year. As previously mentioned in the Officer Comment, should a shorter term be deemed manageable, this may save the City over the term of the loan in interest payments.

 

Dependent on the new loan repayment schedule, the payments on this new loan would be met by the existing reserve transfers and allocated for in future budget commitments.

 

Stakeholder Consultation

Council would be required to advertise its intention to borrow for a period of 1 month. Any submissions would be considered 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. The following risks have been identified:

Interest rates will rise causing additional cost to the City over the life of the loan.  

Risk Category

Risk Consequence

Likelihood of Consequence

Risk Level

Financial

Minor

Likely

Medium

 

Interest rates could potentially cost the City approximately an additional $305,000 in interest and fees over the life of the loan, should the interest rate increase by 0.25% off original estimates. To minimise this risk, the City could lock in a loan early to ensure a spike in interest rates does not cause excessive costs to the City.

 


Options

As an alternative to the proposed recommendation the Council could:

1.         Choose to wait until the 2022/23 financial year to include sufficient loan borrowings to complete the BPACC Project. This is not recommended due to the additional cost that is likely to occur as interest rates rise.

2.         Consider borrowing an alternate amount.

CONCLUSION

Council is therefore requested to approve a loan for $10 million over a 20 year period within the 2021/22 financial year to reduce the risk of increasing interest rates and costs to the City. Any payments associated with servicing the loan can be covered in the 2021/22 budget. Should Council agree to the officer recommendation, the advertising of the Council’s intention for a period of 1 month would be required.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Advertising for a period of 1 month would be required prior to Council giving final approval to borrow $10 million. Following final approval City staff would execute the paperwork with the WATC within 3 – 5 working days.


Council                                                                                      86                                                             23 February 2022

18.             Motions of which Previous Notice has been Given

Nil


19.             urgent business

19.1           COMMERCIAL LEASE - PORTION OF LOT 73 (38) PEEL TERRACE

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

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Nil

 

The Presiding Member consented to a member moving a motion in relation to an item ‘Commercial Lease – Portion of Lot 73 (38) Peel Terrace’ on the basis of the item being urgent business as it cannot wait inclusion in the Agenda of the next Council Meeting as the surrender of the lease with CQU must precede the commencement of lease with ECU.

 

COUNCIL DECISION

C2202/036               Moved Councillor A Ryan, seconded Councillor J Richards

 

That the Council consider the item ‘Commercial Lease – Portion of Lot 73 (38) Peel Terrace’ as Urgent Business as it cannot wait inclusion in the Agenda of the next Council Meeting as the surrender of the lease with CQU must precede the commencement of lease with ECU.

CARRIED 9/0

 

The officer recommendation was moved and carried.

 

COUNCIL DECISION

C2202/037               Moved Councillor A Ryan, seconded Councillor P Carter

That the Council:

1.         Nominates Edith Cowan University as the preferred proponent resulting from the Expression of Interest process for a Tertiary Study Hub opportunity at Lot 73 (38) Peel Terrace, Busselton.

2.         Authorises the CEO to negotiate and enter into a lease with Edith Cowan University for Lot 73 (38) Peel Terrace, Busselton to be used as higher education study hub or facility based on the terms as outlined in this report.

CARRIED 9/0

BY ABSOLUTE MAJORITY


OFFICER RECOMMENDATION

That the Council:

1.         Nominates Edith Cowan University as the preferred proponent resulting from the Expression of Interest process for a Tertiary Study Hub opportunity at Lot 73 (38) Peel Terrace, Busselton.

2.         Authorises the CEO to negotiate and enter into a lease with Edith Cowan University for Lot 73 (38) Peel Terrace, Busselton to be used as higher education study hub or facility based on the terms as outlined in this report.

 

EXECUTIVE SUMMARY

An Expression of Interest was advertised for a Tertiary Study Hub Opportunity located at Lot 73 (38) Peel Terrace, Busselton. This report outlines the expression of interest process with two submissions being received and evaluated, and Officers recommending Edith Cowan University as the preferred proponent to enter into negotiations for a lease for Lot 73 (38) Peel Terrace.

 

BACKGROUND

Lot 73 (38) Peel Terrace (on Deposited Plan 49894 being the whole of the land in Certificate of Title Volume 2630 Folio 894) is owned freehold by the City of Busselton and includes a building on the north-eastern portion. The building, located in a highly visible spot on the corner of Peel Terrace and Causeway road has formerly been leased to the Margaret River Busselton Tourism Association (MRBTA) for use as the Busselton Visitor Centre, as well as been used by the City of Busselton as a temporary Customer Information Centre during the construction of the now City administration building. 

 

Following the relocation of the Busselton Visitor Centre and MRBTA administration to the Busselton Foreshore in 2016, Council endorsed the  lease of 38 Peel Terrace to Central Queensland University (CQU) to be utilised as a study hub for five years, from 2017-2022. CQU have in this time provided a range of courses and online learning opportunities to the district.  CQU have recently advised of their withdrawal from Western Australia as of 2022 and expressed an interest to terminate their lease agreement with the City.

 

The South West region is currently serviced by Edith Cowen University (ECU), Bunbury Campus and a local learning hub based at the Good Egg Café in Busselton, Curtain University of Technology in Margaret River and South Regional TAFE in Bunbury, Busselton and Margaret River. The City, through its Economic Development Strategy (2016-26) has identified the need to have increased higher education opportunities to cater for City residents and hence support retaining the Peel Terrace building as a tertiary study or online learning hub.

 

As such, an expression of interest (EoI) was advertised to all Western Australian higher education institutions to operate a learning or study hub at the Peel Terrace site. The EoI invited operators to submit proposals consistent with the permissible building uses of;

·    Study Hubs

·    Study Offices

·    Higher Education classrooms

·    Computer labs


The Peel Terrace building, constructed in February 1998, has a building footprint area of 302m2 and a veranda of 152m2.  It is constructed of limestone external walls, rendered brick internal walls, metal roof and a concrete floor.  It is currently fitted out with a reception area, open plan office area, six enclosed offices, file storage/services room, kitchenette / lunch room, internal unisex toilet and two external unisex toilets as well as a cleaners storage area. The building has been fitted out by CQU to facilitate online and study-based learning. Under the lease agreement CQU can remove and restore the building to its previous layout or alternatively they may negotiate with a new tenant to utilise the existing interior fit-out.  There are currently 21 marked car parking bays, including a disabled bay on the same lot located adjacent to the building, the parking bays are not included in the lease area however  provide non-exclusive use for future students and the public for other uses.

 

The EoI was advertised for three weeks, from 14 January to 2 February 2022 as detailed in the Stakeholder Consultation section of this report. Two submissions were received, one from Edith Cowan University (ECU) and the other Phoenix Academy. An evaluation panel made up of City Officers was formed and assessed the submissions against the EoI criteria. The panel scored and agreed that ECU submitted the most detailed and highest ranked submission. 

OFFICER COMMENT

ECU have been delivering higher education in the South-West Region for approximately 30 years and have been interested in a Busselton Study Hub to improve access to educational services for a number of years. Recently, ECU have made a strategic commitment to higher education in regional areas through the development of a new Strategic and Regional Plan.

 

ECU currently offers courses in Nursing, Education, Social Work, Health Science and Commerce and have more than 300 residents from the City of Busselton area currently enrolled in ECU degrees. Enrolments to ECU from City residents grew by 60% in the 11 years between 2010 and 2021.

A high level summary of ECU’s submission outlines the Busselton Tertiary Study Hub providing the following:

·    24/7 accessible study hub with security;

·    hybrid/ blended learning methods;

·    independent study spaces;

·    advice, information and referral to other ECU services through a one-stop concierge service;

·    workshops, networking and small group classes; and

·    delivery of a new range of tailored courses.

 

ECU wish to begin commencement of the lease in March 2022, which would be subject to an agreement from CQU to vacate the building and terminate their lease prior to September 2022. A lease term with ECU of five years is proposed with the option to extend for a further five years.

 

The leasing of 38 Peel Terrace to ECU provides the opportunity for residents in the City of Busselton region to access higher education facilities. ECU have proven their ability to successfully attract regional students and this opportunity will allow them to grow their courses and opportunities for students.

 

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.

 

Regulation 358 Disposal of Property (lease) for 38 Peel Terrace.

 


 

Under regulation 30 (2) (b) (i) & (ii) of the Local Government (Functions & General) Regulations, disposal of land to incorporated bodies with objects of benevolent, cultural, educational or similar nature and the members of which are not entitled to receive any pecuniary profit from the body’s transactions, are exempt from the advertising and tender requirements of section 3.58 of the Local Government Act.

 

Relevant Plans and Policies

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

 

·    The leasing of 38 Peel Terrace to a relevant higher education facility is in line with the City of Busselton’s Economic Development Strategy 2016-2026.

 

Financial Implications

The current annual rental income paid by CQU for the lease of the building is $34,967.26.

 

A rental market valuation will be undertaken to assess the current market value prior to entering into a new lease with the recommended proponent. Rent reviews will be conducted every three years, with all other years subject to CPI rent reviews. ECU would be required to pay City of Busselton rates, utilities and communications/NBN. The tenant will be responsible for all costs associated with any required internal fit out.

 

Stakeholder Consultation

An expression of interest (EoI) was advertised for a three week period, from 14 January to 4 February 2022. The EoI was published on the City of Busselton’s website and emailed directly to all Western Australian higher education institutions, including Universities, private colleges and TAFE.

 

Risk Assessment

The surrender of the lease and handover to the new proponent does not involve any significant changes from current practices and is therefore considered low risk, with no risks identified as “medium” or greater.

 

The recommended proponent has successfully addressed all the EoI selection criteria and the officers are confident in the credibility and experience of the proponent.

 

Options

As an alternative to the proposed recommendation the Council could:

1.    enter into a lease with ECU for alternative terms and conditions.

2.    not enter into a lease with ECU and seek alternative tenants (commercial or community).

CONCLUSION

The Peel terrace site has been utilised by CQU for almost five years and provided residents with local tertiary education opportunities. CQU have recently advised the City that they will be withdrawing their study hub from Busselton when their lease expires in September 2022. In line with the Economic Development Strategy (2016-2026) and Council’s preference to attract a new higher education institution tenant into this site, Officers conducted an EoI process for a tertiary study hub opportunity for 38 Peel Terrace. Two submissions were received from Edith Cowan University and Phoenix Academy. A panel of Officers evaluated the submissions and are recommending ECU as the preferred proponent to enter into a lease.  Council is requested to endorse the Officer recommendation for the CEO to negotiate terms and conditions for a lease with ECU for Lot 73 (38) Peel Terrace, Busselton.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Subject to council endorsement, Officers will liaise with CQU and progress lease negotiations with ECU without delay.

 


20.             Confidential Reports  

 Nil

 


21.             Closure

 

The Presiding Member closed the meeting at 5:58pm.

 

THESE MINUTES CONSISTING OF PAGES 1 TO 93 WERE CONFIRMED AS A TRUE AND CORRECT RECORD ON Wednesday, 9 March 2022.

 

DATE:_________________  PRESIDING MEMBER:_____________________________