Council Agenda

 

 

 

11 May 2022

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 11 May 2022

 

 

 

TO:                  THE MAYOR AND COUNCILLORS

 

 

NOTICE is given that a meeting of the Council will be held in the Council Chambers, Administration Building, Southern Drive, Busselton on Wednesday, 11 May 2022, commencing at 5.30pm.

 

Your attendance is respectfully requested.

 

 

DISCLAIMER

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

 

 

 

Mike Archer

 

CHIEF EXECUTIVE OFFICER

 

29 April 2022


CITY OF BUSSELTON

Agenda FOR THE Council MEETING TO BE HELD ON 11 May 2022

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

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

2....... Attendance. 5

3....... Prayer. 5

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

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

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

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

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

Previous Council Meetings. 5

8.1          Minutes of the Council Meeting held 27 April 2022. 5

Committee Meetings. 6

8.2          Minutes of the Airport Advisory Committee Meeting held 27 April 2022. 6

8.3          Minutes of the Policy and Legislation Committee Meeting held 27 April 2022. 6

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

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

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

12..... Reports of Committee. 7

12.1        Airport Advisory Committee - 20/4/2022 - BUSSELTON MARGARET RIVER AIRPORT - COMMERCIAL DEVELOPMENT OPPORTUNITIES. 7

12.2        Airport Advisory Committee - 20/4/2022 - BUSSELTON MARGARET RIVER AIRPORT - OPERATIONS UPDATE. 13

12.3        Policy and Legislation Committee - 27/4/2022 - REVIEW OF COUNCIL POLICY: RECORDING AND LIVESTREAMING OF COUNCIL MEETINGS. 19

12.4        Policy and Legislation Committee - 27/4/2022 - WORK HEALTH AND SAFETY POLICY. 30

13..... Planning and Development Services Report. 38

13.1        DRAFT DUNSBOROUGH PRECINCT STRUCTURE PLAN AND ASSOCIATED AMENDMENT 52 TO LOCAL PLANNING SCHEME NO. 21 - CONSIDERATION FOR INITIATION; AND AMENDMENT 50 MINISTERIAL DECISION.. 38

14..... Engineering and Work Services Report. 308

15..... Community and Commercial Services Report. 309

15.1        BUSSELTON JETTY INC. JETTY VILLAGE PROPOSAL. 309

16..... Finance and Corporate Services Report. 332

                   16.1       LEASING ARRANGEMENTS - GOOSE SITE LOT 432 FORESHORE PARADE…….………………..332

17..... Chief Executive Officers Report. 338

17.1        COUNCILLORS' INFORMATION BULLETIN.. 338

18..... Motions of which Previous Notice has been Given.. 342

19..... urgent business. 342

20..... Confidential Matters. 342

21..... Closure. 342

 


Council                                                                                      6                                                                         11 May 2022

 

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

 

2.               Attendance 

Apologies

 

Approved Leave of Absence

 

Nil

 

3.               Prayer

 

4.               Application for Leave of Absence

 

5.               Disclosure Of Interests

 

6.               Announcements Without Discussion

Announcements by the Presiding Member

 

7.               Question Time For Public

Response to Previous Questions Taken on Notice

Public Question Time For Public

 

8.               Confirmation and Receipt Of Minutes 

Previous Council Meetings

8.1             Minutes of the Council Meeting held 27 April 2022

Recommendation

That the Minutes of the Council Meeting held 27 April 2022 be confirmed as a true and correct record.

 

Committee Meetings

8.2             Minutes of the Airport Advisory Committee Meeting held 27 April 2022

Recommendation

That the Unconfirmed Minutes of the Airport Advisory Committee Meeting held 27 April 2022 be noted as recieved.

 

8.2             Minutes of the Policy and Legislation Committee Meeting held 27 April 2022

Recommendation

That the Unconfirmed Minutes of the Policy and Legislation Committee Meeting held 27 April 2022 be noted as recieved.

 

9.               RECEIVING OF Petitions, Presentations AND DEPUTATIONS

Petitions

 

Presentations

 

Deputations

 

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

 

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


Council                                                                                      7                                                                         11 May 2022

12.             Reports of Committee

12.1           Airport Advisory Committee - 20/4/2022 - BUSSELTON MARGARET RIVER AIRPORT - COMMERCIAL DEVELOPMENT OPPORTUNITIES

STRATEGIC THEME

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

STRATEGIC PRIORITY

3.4 Develop aviation opportunities at the Busselton Margaret River Airport.

SUBJECT INDEX

BMRA

BUSINESS UNIT

Community and Commercial Services

REPORTING OFFICER

Director, Community and Commercial Services - Naomi Searle

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Nil

 

This item was considered by the Airport Advisory Committee at its meeting on 27/4/2022, the recommendations from which have been included in this report.

 

COMMITTEE RECOMMENDATION

That the Council:

1.         Supports the engagement of a Business Development resource to pursue commercial opportunities at the Busselton Margaret River Airport, and

2.         Endorses the allocation of $130k in the draft 2022/23 and 2023/24 budgets to engage a Business Development resource acknowledging that these costs will be funded from the net operating surplus of the Busselton Margaret River Airport.

 

OFFICER RECOMMENDATION

That the Council:

1.         Supports the engagement of a Business Development resource to pursue commercial opportunities at the Busselton Margaret River Airport, and

2.         Endorses the allocation of $130k in the draft 2022/23 and 2023/24 budgets to engage a Business Development resource acknowledging that these costs will be funded from the net operating surplus of the Busselton Margaret River Airport.

EXECUTIVE SUMMARY

With the completion of Busselton Margaret River Airport (BMRA) redevelopment project, increased charter and regular public transport (RPT) services, and easing of the COVID-19 pandemic restrictions, the BMRA is facing increasing operational requirements.  Operational safety and effectiveness of the BMRA is priority, however as a result, and given current resourcing levels the ability to pursue commercial development opportunities is limited. 

 

This report recommends Council allocate funding to engage a dedicated resource focused on pursuing commercial development opportunities for a two year period commencing in the 2022/23 financial year.


BACKGROUND

The City of Busselton completed the BMRA redevelopment project in March 2018 with construction of airside and landside infrastructure that enables domestic and international air services to destinations such as Melbourne, Sydney, Singapore, Kuala Lumpur, Denpasar and China. The redevelopment project was funded through the Federal and State Governments in conjunction with the City of Busselton and enabled the construction of significant infrastructure including the following:

·        Code 4E Runway: 2520m x 45m to facilitate aircraft such as Boeing 737, Airbus 320 and Airbus 330;

·        A total of 11 aircraft apron parking bays (Code C / E) and connecting taxiways;

·        Jet A1 and Avgas fuel facility (Truck & Bowser);

·        Two helipads;

·        Public car parking (422 bays);

·        General aviation precinct 34 lots comprising two Code B aprons capable of accommodating up to 34 fully serviced hangars and two fully serviced hangar lots with Code C apron access;

·        Airfreight hub – Stage 1 of the Commercial and Industrial Precinct with four serviced lots with direct airside access and three landside serviced lots.

 

Following successful negotiations with Jetstar, the airline and the City announced a new Melbourne – Busselton RPT service in October 2019, with a commencement date of 25 March 2020. To facilitate the new service, the City expanded the existing terminal and constructed a new separate arrivals hall, in addition to procuring and installing necessary security screening and baggage handling equipment.  Services were postponed on a number of occasions as a result of the COVID-19 pandemic and recently commenced on 6 April 2022.

Since this time the City has been pursuing various commercial opportunities which were noted and endorsed at the City’s of Busselton Airport Advisory Committee (AAC) meeting held 2nd December 2020, and as set out in the below table:

 

Product/Service

Description

Actions

BMRA Route Development

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

·      Intrastate FIFO closed charter operations 

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

·      International RPT services (Singapore)

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

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

·      Negotiations with airlines

·      Federal Govt approvals (Home Affairs, Border Force) 

Alternate landing Site

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

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

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

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

General Aviation

 

34 lots Code B

·      Various sizes, with capacity to combine land lots

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

·      GA focus

·      Option 1  -  advertise and market lease opportunities

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

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

General Aviation

1 x Code C lot

·      Fully serviced

·      Size: 3840m2 each

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

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

Commercial & Industrial precinct

4 land lots

 

·      Fully serviced land lots for lease

·      Size: 4864m2 each

·      Direct runway access

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

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

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

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

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

Commercial & Industrial precinct

3 land lots

 

·      3 fully serviced land lots for lease

·      Size: 2018-3088m2 each

·      General freight focus

 

Advertising

·      Electronic screens in the terminal / arrivals hall

·      Static posters located in the terminal

·      Fences and benches within Carparks

·      Billboard (Neville Hyder Drive)

 

·      Electronic screen is available  - advertising to be completed

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

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

Landside commercial opportunities

·      Airport Café/kiosk

·      Retail / tourism products

·      Car valeting and storage

·      Fuel station

·      Hotel / short stay accommodation 

·      BMRA café /kiosk license in negotiations now

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

·      Car valeting and storage once RPT operations have commenced

·      Long term opportunities - Fuel stations and hotel sites

 

Through the AAC the Council has been kept up to date on the progress of these commercial development opportunities.  While the pandemic has placed considerable constraints on Officers being able to achieve significant outcomes, fly-in-fly-out (FIFO) charter services have increased from 10 flights per week using the Fokker 100 aircraft in January 2020 to 24 flights per week with Fokker 100, A320 and Dash-8 aircraft operating as of the end of March 2022. In addition to the three new Jetstar RPT services, scheduled FIFO services now operate over five days per week.  With increased charter and RPT activities, the airport is now facing considerable operational pressures which in turn is preventing officers being able to dedicate time to advance commercial opportunities.

 

The BMRA’s commercial and industrial opportunities have been highlighted as a priority in the City’s draft Economic Development Strategy (2022-2027) and as such it now requires dedicated resources to progress these into real outcomes such as new airservices route development, air freight opportunities, commercial land opportunities including hangar leases and international alternate operations.

OFFICER COMMENT

The BMRA operates with 3.5 full time equivalent (FTE) staff; 1 FTE Airport Operations Coordinator and 2.5 FTE Airport Reporting Officers.  In addition to this, the City’s Manager Economic and Business Development is the nominated Airport Manager who is required to perform certain regulatory functions as required by the Civil Aviation Safety Authority, Aviation Transport Security Act 2004, and the Aviation Transport Security Regulations 2005. The Manager is also responsible for the management of the Economic and Business Development Activity Unit, Busselton Jetty Tourist Park, and the Busselton Jetty.

 

Operationally BMRA officers schedule maintenance and daily work priorities through outdated and manual paper based systems which are now proving inefficient and time consuming.  Officers are currently undertaking a review of the airport’s operating systems to identify more appropriate and modern systems to guide maintenance and daily activities.  In addition to this, the City is undertaking a number of Request for Quotations/Tenders for the construction of General Aviation hangars, relocation of the Royal Flying Doctor Service, a marquee to extend the secure departure lounge in the arrivals hall, and additional public car parking. 

 

A number of other priority works have also been identified with the introduction of RPT services, including a ground servicing equipment storage facility, improved baggage handling systems, additional boarding counters, and weather protection area on the front of the arrivals terminal. 

 


Competing with the operational priorities are the following strategic and commercial opportunities:

·    Airport Master Plan review

·    Progressing commercial opportunities:

General Aviation (GA) Precinct (GA hangars and aircraft maintenance facilities)

Commercial and Industrial Precinct

Freight services

Airline engagement – RPT, Charter and Alternate International Airport

·    Emergency Services Precinct

·    Asset Management Plan, funded by the Department of Transport.

 

With scheduled charter and RPT services now spanning five days a week, airport staff time is increasingly dedicated to operations rather than pursing commercial and more strategic opportunities.

 

In order to maintain and maximise the airport’s operational performance and achieve the commercial opportunities and priorities outlined in the City’s draft Economic Development Strategy (2022-2027), it is recommended that additional resources be allocated to the Airport.  As the airport operates as a commercial business unit, there will be no financial impact to the municipal budget if this is endorsed, with adequate resourcing within the Airport Reserve. 

 

It is recommended that this funding be allocated for a period of two years commencing in the 2022/23 financial year to enable the recruitment of a Business Development staff member to pursue these opportunities.  It is envisaged the Business Development resource will work closely with airport staff and also the City’s Economic Development team to ensure priorities and activities are aligned and not duplicated.

 

Statutory Environment

The BMRA operates in accordance with the following:

·        Aviation Transport Security Act 2004

·        Aviation Transport Security Regulations 2005

·        CASA Manual of Standards 139

·        Council’s Transport Security Plan

·        City policies and procedures.

 

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

 

Relevant Plans and Policies

The officer recommendation aligns to the following adopted plans:

·        Busselton Margaret River Airport Master Plan 2016

·        Draft City of Busselton Economic Development Strategy (2022-2027).

 


Financial Implications

As at 30th March 2022 the BMRA salaries and wages budget including overtime was approximately $17k underspent; with the end of financial year net operational profit is projected to be in excess of $400k.  Approximately $130k per annum over two years will be required to fund a dedicated Business Development resource. 

 

The Airport operates as a “commercial business unit”, (i.e. the net profit of the airport operations is transferred at the end of the financial year to the Airport Marketing and Incentive Reserve). As the proposed funds required for the economic development resource, there will be no financial impact to the bottom line of the annual budget each year, provided the BMRA continues to produce a net profit.

 

The City’s Long Term Financial Plan (LTFP) indicates an estimated balance of $2.3M within the Airport Marketing and Incentive Reserve by the end of 2021/22.  

 

Stakeholder Consultation

Officers continue to consult with the relevant stakeholders in regards to further developing the airport, including Airlines, Tourism WA, Margaret River Busselton Tourism Association, Australia South West, aircraft operators and owners and commercial / investment developers.

 

Risk Assessment

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

 

Options

As an alternative to the proposed recommendation the Council could choose not to allocate funding towards a dedicated Business Development resource.  This would significantly limit the ability to progress priorities identified to further develop the commercial and economic development opportunities at the airport.

CONCLUSION

Following the airport redevelopment works, the commencement of RPT services, and the easing of COVID-19 restrictions, the BMRA is now facing unprecedented growth.  There are a number of operational and strategic priorities that need to be progressed in order to realise the full potential of the airport.  Existing BMRA staff resources are focused on ensuring operational requirements and compliance with CASA and Home Affairs regulations and as such, commercial development opportunities are not able to be prioritised.  It is therefore recommended that funding be allocated towards a resource to pursue business development opportunities and work alongside the BMRA and Economic Development teams to maximise economic development outcomes for the region.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Recruitment of an officer will be progressed immediately following the endorsement of Council.  It is envisaged the Officer will commence at the beginning of the 2022/23 financial year.

 

 


Council                                                                                      14                                                                      11 May 2022

12.2           Airport Advisory Committee - 20/4/2022 - BUSSELTON MARGARET RIVER AIRPORT - OPERATIONS UPDATE

STRATEGIC THEME

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

STRATEGIC PRIORITY

3.4 Develop aviation opportunities at the Busselton Margaret River Airport.

SUBJECT INDEX

Busselton Margaret River Airport

BUSINESS UNIT

Commercial Services

REPORTING OFFICER

Manager Economic and Business Development Services - Jennifer May

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

NATURE OF DECISION

Noting: This item is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Nil

 

This item was considered by the Airport Advisory Committee at its meeting on 27/4/2022, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council receives and notes the Airport Operations Report.

 

OFFICER RECOMMENDATION

That the Council receives and notes the Airport Operations Report.

EXECUTIVE SUMMARY

This report provides an overview of the operations and activities of the Busselton Margaret River Airport (BMRA) for the reporting period 1 July 2022 through 31 March 2022. This includes an update on passenger numbers, closed charter and general airport operations. While not included in the reporting period, Jetstar RPT operations commenced on 6 April 2022 and an initial update of the first flights is provided.

BACKGROUND

The BMRA has seen positive growth in aircraft landings and passenger numbers with additional closed charter flights operating during the reporting period along with DFES Large Air Tanker and helitac operations, and military aircraft activity.

 

Aircraft Movements

The total number of Fly in Fly out (FIFO) closed charter services operating from the BMRA has increased, with 24 flights (48 movements) per week as at the end of March. Currently there are four airlines operating closed charter services from the BMRA utilising the F70, F100, A320 and Dash 8 aircraft and servicing North West destinations such as Boolgeeda, Barimunya, West Angeles, Newman, Roy Hill and Karratha.

 

The total number of aircraft landings has steadily increased during the period with some monthly variations mainly due to light and general aviation traffic.  The total aircraft landings during the reporting period from July 2021 – February 2022 was 7662 compared to 6020 for the same period 2020/21.

 

 

Passenger Numbers

Overall passenger numbers have increased by 40% (40,205) for the reporting period compared to same period for 2020/21 (28,661), which was a 34% increase from 2019/20 (21,410).  This can be attributed to increases in FIFO passenger numbers across all closed charter airlines including Virgin Australia Regional Airlines, Alliance Airlines and Network Aviation servicing Rio Tinto, BHP and FMG.

 

 

 

 

 


Carpark

Currently 1423 FIFO passengers have been provided swipe cards to access the BMRA car park at a discounted rate. The average daily occupancy for the reporting period was 340 parked patrons per day. The public car park has now reached capacity on 3 occasions and Officers are proposing a temporary car parking solution while an extension to the new public car park is constructed. The proposal is to fence off approximately 9000m2 of the southern general aviation apron for FIFO passenger use and line mark up to 300 car parks, install boom gates and a temporary pay system.  This would leave the public car park for RPT passengers and other visitors to the Airport. A drawing of the proposed area is included below.

 

Temp. FIFO car parking

 

Operations

The focus for the reporting period has been on:

·        Support for the LATS (Large Aerial Tanker Support) operations;

·        Airside and landside mowing program;

·        Apron lighting – this project has been completed however one lighting pole was identified as being unsafe and removed from the central apron. A replacement pole is being ordered; 

·        The City’s Facilities team completed a maintenance and painting program for the Arrivals Hall and Terminal building prior to the arrival of the Jetstar flights;

·        A revised Transport Security Program was submitted to the Department of Home Affairs for approval;

·        Noise monitoring at two locations (Reinscourt and Kalgup) to capture closed charter and RPT operations;

·        A review of the Noise Management Plan including public consultation was conducted from November 2021 through to January 2022 with a report submitted to the CEO of the Environmental Protection Authority in early April

·        Preparation for the commencement of Jetstar RPT services - this required prioritisation of a large number of operational readiness activities including equipment servicing and maintenance, a revised Transport Security Program submission, mobilisation of the security screening team and landside activities such as wayfinding signage, car parking and provision of information for the public.


OFFICER COMMENT

FIFO passenger numbers through the BMRA have continued to increase significantly in comparison to the same period last year and officers expect passenger numbers to continue to increase as FIFO recruitment and employment from the South West continues. 

 

The Jetstar Busselton- Melbourne flights commenced on the 6 April 2022 with a celebratory event to welcome the inaugural flight. Invited guests and VIPs attended the event hosted by the City of Busselton in the Arrivals Hall, with Federal Government Assistant Minister for Regional Development and Territories Nola Marino MP, Deputy Premier Roger Cook MLA, Minister for Regional Development; Agriculture and Food Alannah MacTiernan MLA, Jetstar CEO Gareth Evans and senior executives attending from Tourism WA, Australia’s South West and South West Development Commission, as well as the City’s Mayor, Councillors and CEO.

 

The Jetstar flights are seen as a significant achievement by the City of Busselton that will result in increased tourism, economic benefits and opportunities for the South West. The Jetstar flights are scheduled for three times a week and, as of the 20 April 2022, there had been seven return flights from Melbourne with an average occupancy of 97% for arriving flights and 95% for departing flights.

 

Not unexpectedly, there were some ‘teething’ problems and operational limitations identified which have impacted on Jetstar turn-around times. The following key issues have been identified with officers working hard on solutions;

·        The sterile departure lounge is at capacity for A320 operations;

·        An additional check-in desk / injector belt is required for Jetstar flights;

·        The baggage handling system (baggage conveyor belts) design is susceptible to blockages and  alarms;

·        An additional boarding counter and service desk is required;

·        There are some screening lane deficiencies (additional rollerbeds are required);

·        CBS X-ray screening processes - service request submitted with supplier for software settings review.

 

In addition, improvements are required in relation to the following to improve ground handling operations and customer experience at the BMRA:

·        Airport inspection, maintenance and reporting tablet/onine system;

·        Increased ground handling equipment storage areas;

·        Additional airline offices and training rooms for aircraft and airline accreditation;

·        Staff toilets, showers and changing room facilities;

·        Additional public car parking;

·        Wayfinding and direction signage;

·        Replacement apron lighting pole - the pole removed from Central apron, Bay 9 is restricting night operations.

 

Statutory Environment

The BMRA operates in accordance with the following:

·        Aviation Transport Security Act 2004

·        Aviation Transport Security Regulations 2005

·        CASA part 139 Manual of Standards (Aerodromes)

·        City of Busselton Transport Security Plan

·        Ministerial Statement 1088

·        City policies and procedures

 

Relevant Plans and Policies

The officer recommendation aligns to the following adopted plans:

·        BMRA Master Plan (2016-2036)

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

 

Financial Implications

Revenue

Actual YTD revenue for the reporting period is $1,673,486 compared to the YTD budget of $1,707,710, noting that security screening revenue has not been realised due to the delay in the Jetstar flights. Excluding the security screening revenue, YTD actual budget ($1,673,486) is tracking higher than the YTD budget ($1,427,855) with the key revenue areas contributing towards this being airport landing fees, sundry income and car parking income.

 

Expenditure

Actual YTD expenditure for the reporting period is $1,110,098 (including commitments) compared to the YTD Budget of $1,055,233, not including security screening costs and the airline attraction program which have not been incurred due to the delay in the Jetstar flights.  Higher expenditure for the reporting period can mainly be attributed to higher wages costs, expenditure in landside maintenance, equipment servicing, car parking line marking and directional and information signage in preparation for the Jetstar flights.

 

Other operational expenditure that is likely to impact the end of year operating result is increased cleaning schedules and waste collection. Any overspend (expenditure) can be offset by increased revenue streams. Further the BMRA is self-funded from Airport specific reserves and hence does not impact municipal budget bottom line.

 

Airport Staff are working through costing a number of operational and capital works improvements to be considered for inclusion in the 2022/23 financial year budget which will be the subject of a separate report once all costings have been received and verified.   

 

Stakeholder Consultation

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

 

Risk Assessment

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

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

 

Options

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


CONCLUSION

Officers continue to strive to provide a high level of customer service at the BMRA, while ensuring the airport is compliant, safe and security is maintained throughout.  The commencement of Jetstar RPT services has identified a number of operational actions and infrastructure investment requirements.

 

With the recent focus on preparing for Jetstar RPT services, officers have not as yet sought quotations to prepare a new BMRA Master Plan, and business development initiatives have also been deferred. A separate report on this Airport Advisory Committee agenda seeks Council’s endorsement for a resource to help progress the business development opportunities at the BMRA.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

 

 


Council                                                                                      20                                                                      11 May 2022

12.3           Policy and Legislation Committee - 27/4/2022 - REVIEW OF COUNCIL POLICY: RECORDING AND LIVESTREAMING OF COUNCIL MEETINGS

STRATEGIC THEME

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

STRATEGIC PRIORITY

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

SUBJECT INDEX

Council Policies

BUSINESS UNIT

Governance

REPORTING OFFICER

Governance Officer - Jo Barrett-Lennard

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

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

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Current Policy: Recording and Livestreaming of Council Meetings

Attachment b    Proposed Policy: Recording and Livestreaming of Council Meetings (clean)

Attachment c    Proposed Policy: Recording and Livestreaming of Council Meetings (tracked)

Attachment d   Proposed Policy with Committee Amendments

 

This item was considered by the Policy and Legislation Committee at its meeting on 27/4/2022, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council:

1.    Adopt the amended Council Policy inclusive of the Committee Amendments as at Attachment D.

 

2.    Requests the CEO investigate and implement a copyright disclaimer for the City’s website and YouTube channel.

Reasons:          The Committee requested a three month timeframe in paragraph 5.8, due to trends indicating lower engagement with recordings after this time period. The Committee also requested a copyright disclaimer be placed on recordings to deter the misuse of recordings.

OFFICER RECOMMENDATION

That the Council adopt the amended Council policy: Recording and Livestreaming of Meetings (the Policy) (Attachment B) to replace the current policy (Attachment B).

EXECUTIVE SUMMARY

This report presents an amended Council policy: Recording and Livestreaming of Meetings (the Policy) (Attachment B), revised to amend the timeframe livestream recordings will remain available on the City of Busselton’s YouTube channel (YouTube). Officers recommend it replace the current Council policy (Attachment A).

BACKGROUND

Council policy ‘Audio Recording of Council Meetings’ was adopted on 26 June 2019 (C1906/108), following a request from a member of the public for a copy of a recording of an Ordinary Council Meeting taken under the City’s Standing Orders Local Law 2018 for minute purposes.

 

The policy was subsequently amended and adopted in its current form by Council at its Ordinary Meeting on 11 November 2020 (C2011/127) to allow for the livestream of meetings when personal attendance was limited due to Covid-19 related restrictions.  The livestream of Council Meetings as a regular practice commenced on 23 June 2021.

OFFICER COMMENT

The current policy states that recordings are to be removed as soon practicable after the minutes of that meeting have been confirmed. More recently the recordings have been made available for a longer period of time. The proposed amendment to the Policy is to set a longer timeframe for which these recording will continue to be made available to the public, being six months after the livestream has ended.

 

Originally the livestream recordings were retained to assist in the production of minutes of the meeting. More recently, officers have left the recording visible on YouTube for a longer period of time. This has resulted in a relatively high level of engagement with the Council Meeting recordings on YouTube after the livestream has ended, with the following statistics provided for reference:

 

Date

Total Views

8 September 2021

547 Views

22 September 2021

103 Views

13 October 2021

85 Views

27 October 2021

177 Views

10 November 2021

182 Views

24 November 2021

618 Views

8 December 2021

292 Views

25 January 2022

85 Views

9 February 2022

120 Views

23 February 2022

82 Views

9 March 2022

149 Views

23 March 2022

77 Views

During a livestream, the number of views occurring in real time are between two and 20. This indicates the majority of views are occurring after the livestream has ended.

 

Officers are recommending the continuation of livestreaming and making available the recordings for a period of six months to ensure transparency and access to meetings when in person attendance is not possible.

 

Statutory Environment

The Local Government Act 1995 and the City’s Standing Orders Local Law 2018 provide for and encourage public attendance and transparency at meetings.

 

Relevant Plans and Policies

The officer recommendation aligns with Council policy: ‘Meeting, Information Sessions and Decision Making Processes’.

 

Financial Implications

There are no financial implications associated with the officer recommendation.

 

Stakeholder Consultation

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

 

Risk Assessment

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

 

Options

As an alternative to the proposed recommendation the Council could:

1.         Make additional amendments to the Policy; or

2.         Decline to adopt the Policy and retain the current policy. 

CONCLUSION

A proposed amended Council policy:  ‘Recording and Livestreaming of Council Meetings’ is presented for Councils endorsement.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The Policy will be placed on the City’s website within one week of Council adoption.  


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11 May 2022

12.3

Attachment a

Current Policy: Recording and Livestreaming of Council Meetings

 



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12.3

Attachment b

Proposed Policy: Recording and Livestreaming of Council Meetings (clean)

 



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12.3

Attachment c

Proposed Policy: Recording and Livestreaming of Council Meetings (tracked)

 



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12.3

Attachment d

Proposed Policy with Committee Amendments

 



Council                                                                                      30                                                                      11 May 2022

12.4           Policy and Legislation Committee - 27/4/2022 - WORK HEALTH AND SAFETY POLICY

STRATEGIC THEME

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

STRATEGIC PRIORITY

4.4 Govern a professional organisation that is healthy, capable and engaged.

SUBJECT INDEX

Work Health Safety

BUSINESS UNIT

Corporate Services

REPORTING OFFICER

Manager Governance and Corporate Services - Sarah Pierson

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

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

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Work Health and Safety policy (revised)

Attachment b    Occupational Health and Safety policy (current)

Attachment c    Work Health and Safety policy (tracked)

 

This item was considered by the Policy and Legislation Committee at its meeting on 27/4/2022, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council adopts the Work Health & Safety Policy as per Attachment A to replace the current Occupational Safety and Health Policy (Attachment B).

 

OFFICER RECOMMENDATION

That the Council adopts the Work Health & Safety Policy as per Attachment A to replace the current Occupational Safety and Health Policy (Attachment B).

EXECUTIVE SUMMARY

This report presents a revised Work Health and Safety policy (Attachment A) (the Policy) for Council approval, with the current Occupational Health and Safety policy amended to reflect the new Work Health and Safety Act 2020 (the Act) having come into operation

BACKGROUND

A policy in relation to Occupational Safety and Health was originally adopted in May 2006, with the aim of demonstrating Council’s commitment to ensuring a safe and healthy work environment.  Since then the current policy has been reviewed a number of times, most recently in 2018, where it was moved into the City’s new policy template.

 

The Act was given royal assent on 10 November 2020 and came into effect along with the accompanying regulations on 31 March 2022.  The Act redefines ‘health’ to mean physical and psychological health and sets out obligations of Persons Conducting a Business or Undertaking (PCBUs) as well as obligations of ‘Officers’ of PCBUs – defined broadly as a person who makes, or participates in making, decisions that affect the whole, or substantial part of, the business or undertaking.  Duties of an Officer are outlined in the Act, are positive in nature and cannot be delegated to someone else. 

 

The PCBU and Officers owe these duties to ‘Workers’ - defined as a person carrying out work in any capacity for a PCBU including work as an employee, a contractor or subcontractor and as a volunteer.  PCBU’s can share obligations under the Act based on the capacity of each PCBU to exercise influence and control and the Act sets out a requirement for PCBU’s to consult and cooperate.

OFFICER COMMENT

While the health and safety of staff is the responsibility of the CEO (and other ‘Officers’), Council are responsible for the provision of adequate resources to meet health and safety objectives and targets.  The purpose of the Policy is to demonstrate the Council’s commitment to ensuring a healthy and safe environment for its workers, and outlines the strategic responsibilities of the CEO in this regard.

 

Only minor amendments are proposed to the Policy to reflect the onus on the broader definition of health through the phrase health and safety as opposed to safety and health, along with references to the Act being updated from the Occupational Safety and Health Act 1984.  The Policy title has also been amended to reflect the new Act.

 

Statutory Environment

In accordance with Section 2.7(2)(b) of the Local Government Act 1995 it is the role of the Council to determine the local government’s policies.  The Council does this on the recommendation of a Committee it has established in accordance with Section 5.8 of that Act.

 

Relevant Plans and Policies

The Policy aligns to the City’s Policy Framework.

 

Financial Implications

There are no financial implications associated with the officer recommendation.

 

Stakeholder Consultation

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

 

Risk Assessment

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

 

Options

As an alternative to the proposed recommendation the Council could request further amendments.

CONCLUSION

The Policy updates the current Occupational Safety and Health policy and in doing so maintains the City’s support for a safe and healthy work environment.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The Policy will be effective as of its adoption by Council and placed on the City’s website within one week.


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12.4

Attachment a

Work Health and Safety policy (revised)

 



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12.4

Attachment b

Occupational Health and Safety policy (current)

 



Council

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12.4

Attachment c

Work Health and Safety policy (tracked)

 


 


Council                                                                                      38                                                                      11 May 2022

13.             Planning and Development Services Report

13.1           DRAFT DUNSBOROUGH PRECINCT STRUCTURE PLAN AND ASSOCIATED AMENDMENT 52 TO LOCAL PLANNING SCHEME NO. 21 - CONSIDERATION FOR INITIATION; AND AMENDMENT 50 MINISTERIAL DECISION

STRATEGIC THEME

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

STRATEGIC PRIORITY

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

SUBJECT INDEX

Local Planning Scheme 21 Amendments

BUSINESS UNIT

Strategic Planning

REPORTING OFFICER

Strategic Planner - Joanna Wilkinson

AUTHORISING OFFICER

Director, Planning and Development Services - Paul Needham

NATURE OF DECISION

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

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Aerial Photograph

Attachment b    Draft Dunsborough Precinct Structure Plan

Attachment c    Scheme Amendment Map

Attachment d   Amendment 50 - Minister's Decision  

 

OFFICER RECOMMENDATION

That the Council:

1.         In pursuance of Part 4 of the Deemed Provisions of the Planning and Development (Local Planning Schemes) Regulations 2015 (the Regulations), adopts the draft Dunsborough Precinct Structure Plan (Attachment B) for consultation, to be advertised concurrently with Amendment 52, as set out in the points below.

2.         In pursuance of Part 5 of the Regulations, prepares Amendment 52 to the City of Busselton Local Planning Scheme No. 21 for consultation, for the purposes of:

I.     Amending the Scheme Map (Attachment C) by:

(a)       Amending the residential density code from R-AC3 to R-AC4 over lots bound by Reserve 42545, Naturaliste Terrace, Reserve 42673, and Cape Naturaliste Road, Dunsborough.

(b)      Amending the residential density code from R-AC3 to R-AC0 over the remainder of land zoned ‘Centre’, being:

(i)     Lots bound by Caves Road, Cape Naturaliste Road, Dunn Bay Road and Naturaliste Terrace;

(ii)    Lots bound by Dunn Bay Road, Cape Naturaliste Road, Reserve 42673 and Naturaliste Terrace;

(iii)  Lots bound by Dunn Bay Road, Naturaliste Terrace and Hannay Lane;

(iv)   Lots 1-7 (233) Naturaliste Terrace, and Lots 1-17 (31) and 112 to 104 (13 to 29) Dunn Bay Road; and

(v)    Lots bound by Reserve 26512, Chieftain Crescent, Seymour Boulevard, Reserve 38693 and Dunn Bay Road.

(c)       Amending the residential density code from R80 to R60 over:

(i)     Lots 51 and 87 to 102 Chieftain Crescent;

(ii)    Lots 86 and 162 Chester Way;

(iii)  Lot 141 Lorna Street;

(iv)   Lots 1 & 2 (4), 5 (2), 17, 18 and 41 to 43 Prowse Way;

(v)    Lots 3 and 4 Greenacre Road; and

(vi)   Lot 60 (191) Naturaliste Terrace.

(d)      Amending the ‘Drive Through Facility Control Area’ Special Control Area to include the whole of:

(i)     Lots 1-2 (64) Dunn Bay Road;

(ii)    Lot 1 (61) Dunn Bay Road; and

(iii)  Reserve 42673.

(e)      Amending the zoning of a portion of ‘Road’ reserve at the northern end of Lorna Street, between serifed portions of Reserve 26512, to redesignate as ‘Recreation’ reserve.

(f)       Realigning the zoning of Lot 400 (24) Dunn Bay Road and the portion of ‘Road’ reserve adjacent to the western and south western side of Lot 400 to be consistent with the cadastral boundary, as depicted on the Scheme Amendment Map.

II.    Retitling the “Centre” zone to “District Centre” zone throughout the Scheme, and amending the Scheme Map accordingly.

III.   Amending Table 1 “Zoning Table” in relation to the use classes ‘Single House’, ‘Ancillary Dwelling’, ‘Repurposed Dwelling’, ‘Second-hand Dwelling’, ‘Marina’, ‘Marine Filling Station’, ‘Motor Vehicle, Boat or Caravan Sales’ and ‘Transport Depot’, by replacing the symbol ‘D’ with the symbol ‘X’ in the Centre zone.

IV.  Amending clause 4.3 “Modifications of R-Codes” by changing sub-clause 4.3.2 to read as follows:

“Building height provisions as specified under –

(a)    Table 3 and Deemed-to-Comply provision 5.1.6 C6 of Volume 1 of the R-Codes, and

(b)    Table 2.1, and Acceptable Outcome A2.2.1 of Volume 2 of the R-Codes;

do not apply, except to land coded R-AC3, R-AC4, R-AC0 or R80. In all other areas, maximum building height requirements are required to comply with the provisions of clause 4.8 of the Scheme.”

V.    Amending clause 4.8 “Height of Buildings” by amending sub-clause 4.8.9, removing reference to “Centre” zone.

VI.  Amending clause 4.21 “Development in the Regional Centre and Centre Zones” by removing reference to “Centre” zone, “Dunn Bay Road”, “Naturaliste Terrace” and “Dunsborough”.

VII. Inserting a new clause 4.22 as follows, and renumbering subsequent clauses and clause references throughout the Scheme:

“4.22   Development in the District Centre Zone

Development within the District Centre zone shall address the following provisions:

(a)    In addition to the provisions of Volume 2 of the R-Codes, the following provisions  apply to land coded R-AC0 – 

(i) Table 2 sets out the primary controls; and

(ii) Primary controls shall apply to Building Height Areas as shown on the Scheme Map.

TABLE 2 – R-AC0 PRIMARY CONTROLS

Building Height Area (BHA) /

Primary Controls

3 storey BHA

4 storey BHA

5 storey BHA

Boundary Wall Height (storey)

3

2

2

Setback – min. primary street

Nil

Nil, unless otherwise specified in clause 4.22

Setback – min. secondary street

Nil

Commercial use: Nil; and

Non-commercial use: 2m;

or unless otherwise specified in clause 4.22

Setback – min. side

Nil

Nil, unless otherwise specified in clause 4.22

Setback – min. rear

3m

Nil, unless otherwise specified in clause 4.22

Plot Ratio

1.2

1.3

1.5

(b)    To achieve a consistent building line, increased lot boundary setbacks may be required on Naturaliste Terrace, between the intersections of Cyrillean Way and Dunn Bay Road;

(c)     A 5 metre lot boundary setback shall be provided on the west side of Naturaliste Terrace, between the intersections of Dunn Bay Road and Caves Road. The setback area shall include:

(i) A minimum 2.5 metre wide footpath and pedestrian shelter; and

(ii) A landscaped area adjacent to the boundary;

(d)    Additional primary and secondary street setbacks may be considered where development is providing an associated alfresco space within the setback area;

(e)    Development abutting Caves Road shall respond to the prominence and scenic character of Caves Road by addressing the following matters:

(i) Buildings shall not be located within 6 metres of the Caves Road boundary;

(ii) Building design, finishes and materials shall respond to and enhance the scenic character of Caves Road;

(iii) Building services such as bin storage, utilities, storage tanks and the like shall be adequately concealed so they are not visible from Caves Road; and

(iv) Landscape planting shall provide an attractive interface between development and Caves Road;

(f)     The upper storey external wall face and/or balcony roofs shall be setback from the ground floor external wall face, in accordance with the following:

(i) Three storey development: the third storey setback a minimum of 4m on the interface of Reserves 42673, 35758 and 26513 (Dugalup Brook), Reserve 38693 (Lions Park) and Reserve 26512 (Seymour Park);

(ii) Four and/or five storey development: the third and fourth storey setback a minimum of 4m on all boundaries; and

 

(iii) Five storey development: the fifth storey setback a minimum of 8m on all boundaries;

(g)    No residential uses shall be permitted at ground floor fronting Dunn Bay Road, Naturaliste Terrace or Clark Street;

(h)    Buildings shall be articulated to break up perceived bulk and provide visual interest, particularly with buildings occupying a large/long site frontage;

(i)     Upper levels shall be designed to promote informal surveillance of the street through the use of balconies and/or large windows;

(j)     At the ground floor level, development shall address the street with a primary business entrance and a shop front façade;

(k)    Ground floor commercial uses shall incorporate transparent glazing for a minimum of 70% of all building frontages to adjacent streets;

(l)     Other than sites subject to clause 4.22 (c), a pedestrian shelter through the provision of a verandah, awning or the like, shall be provided with a minimum depth of 2.5 metres over the footpath for the full width of the lot frontage;

(m)   Roller doors or screens of solid material on shop fronts will not be permitted, and security measures should be located and installed internally behind the glazing line;

(n)    On land coded R-AC0, no vehicle access ways or car parking shall be provided between buildings and the street, or be visible from the street, unless required to provide access to car parking or loading areas behind or within buildings;

(o)    On land coded R-AC4, car parking is supported between buildings and the street, subject to:

(i) Being limited to a single row of car parking bays; and

(ii) Inclusion of a 2 metre wide landscaping area adjacent to the street; and

(iii) In such case, the rear setback may be 3 metres;

(p)    All cross-overs shall be rationalised and strategically placed in locations where they will have the least impact on vehicle, pedestrian and cyclist movement;

(q)    Redevelopment sites shall incorporate shared use of car parking and reciprocal access arrangements with adjoining sites;

(r)     For all boundaries abutting Reserves 42673, 35758 and 26513 (Dugalup Brook), Reserve 38693 (Lions Park) and Reserve 26512 (Seymour Park), no parking, loading bays, services or utilities are to be located on the public land interface;

(s)     Undercroft, decked or roof top car parks shall be located above or behind interactive street frontages at ground level, such as shops or other uses that promote activity and, where car parking is visible from a street or public space, high quality architectural detailing shall be incorporated into the façade and other external walls of all floors;

(t)     General plant, such as air-conditioning, television antennas, bins, hot water storage tanks, rain water tanks, satellite dishes and the like are to be adequately concealed and screened from the street or public view;

(u)    Signage and advertising shall not adversely detract from the architectural elements of the building, or visually dominate the building or the streetscape generally.”

VIII. Amending the Scheme Map by inserting an additional information area named “Building Height Area,” as depicted on the Scheme Amendment Map.

IX.   Amending Schedule 2 “Additional Uses” by:

(a)  Amending Additional Use No. A74 by deleting the following properties listed in the ‘Particulars of Land’ column, and amending the Scheme Map accordingly:

Lots 51 and 87 to 102 Chieftain Crescent, Lots 86 and 162 Chester Way, Lots 139 to 141 Lorna Street, Lots 1-9 (20), 81 (18) and 115 to 127 Geographe Bay Road, Lots 1 to 17 (3) Dunn Bay Road, Lots 1 & 2 (4), 5 (2), 17, 18, 41 to 43 Prowse Way, Lots 3 and 4 Greenacre Road and Lot 60 (191) Naturaliste Terrace, Dunsborough.”

(b)  Inserting an Additional Use (No. A84) provision as follows, and amending the Scheme Map accordingly:

A84

Lots 51 and 87 to 102 Chieftain Crescent;

Lots 86 and 162 Chester Way;

Lots 139 to 141 Lorna Street;

Lots 1-9 (20), 81 (18) and 115 to 127 Geographe Bay Road;

Lots 1 to 17 (3) Dunn Bay Road;

Lots 1 & 2 (4), 5 (2), 17, 18, 41 to 43 Prowse Way;

Lots 3 and 4 Greenacre Road; and Lot 60 (191) Naturaliste Terrace, Dunsborough

Consulting Rooms

Guesthouse

Medical Centre

Office

Restaurant/Café

Shop

Tourist Accommodation

1.    The Additional Uses specified shall be deemed to be “D” uses for the purposes of the Scheme.

2.    ‘Shop’ land uses may be permitted at ground floor level only and occupy up to 50% of total development floor space, up to a maximum area of 300m² per lot.

3.    A nil setback to the street shall be considered for a development that includes one or more of the Additional Uses specified and an active frontage.

4.    Active frontages shall comply with the following design requirements:

a.    Minimum 50% transparent glazing;

b.    Roller doors or screens of solid material will not be permitted.

5.    The provisions of Clause 4.25 relating to cash in lieu of car parking shall apply.

3.         Pursuant to Regulation 35 (2) of the Regulations, determine that Amendment 52 is a ‘standard amendment’ in accordance with r.34 of the Regulations as it is:

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

(b)       an amendment that is consistent with a local planning strategy for the scheme that has been endorsed by the Commission.

 

 

 

 

 

4.         Note that, as the draft Amendment is in the opinion of the Council consistent with Part V of the Planning and Development Act 2005 (the Act) and Regulations made pursuant to the Act, upon preparation of necessary documentation, the draft Amendment be referred to the Environmental Protection Authority (EPA) as required by the Act, and on receipt of a response from the EPA indicating that the draft Amendment is not to be subject to formal environmental assessment, be advertised for a period of 42 days, in accordance with the Regulations. In the event that the EPA determines that the draft Amendment is to subject to formal environmental assessment, this assessment is to be prepared prior to advertising of the draft Amendment.

5.         Notes the Ministerial decision and Schedule of Modifications to modify Amendment 50 (Attachment D).

EXECUTIVE SUMMARY

Council is requested to consider initiating for public advertising the draft Dunsborough Precinct Structure Plan (PSP) to guide future zoning, subdivision, and development in the PSP area (refer to Attachment A: Aerial Photograph). The PSP is consistent with relevant ‘Settlement and Community’ and ‘Activity Centres and Economies’ strategies outlined in the City’s Local Planning Strategy (the Strategy), and the ‘Centre’ zone objectives of Local Planning Scheme No. 21 (the Scheme).

 

Council is also requested to consider initiating, for concurrent public advertising, associated Amendment 52 (the Amendment) to the Scheme. The Amendment would enact recommendations of the PSP relating to zoning, land use and development standards for built form (as set out in the Officer Recommendation and Attachment C).

 

It is recommended that the proposal be supported, and that the PSP and Amendment be initiated/adopted for the purposes of community consultation.

 

Council is also asked to consider the Minister for Planning’s recent final decision on Amendment 50 (which relates to part of the PSP area).

BACKGROUND

At its meeting of 14 February 2018, the Council endorsed the preparation of an Activity Centre Plan (now termed a Precinct Structure Plan) and urban design guidelines for the Dunsborough Town Centre (DTC) (C1802/016).

 

This decision followed the gazettal of Scheme Amendment 1 in August 2017, which implemented recommendations stemming from the Local Commercial Planning Strategy (2011), Local Cultural Planning Strategy (2011) and Dunsborough Town Centre Conceptual Plan (2014). Amendment 1 introduced the following changes affecting the DTC:

·        Introduction of R-AC3 coding to encourage and support residential and mixed use development;

·        Introduction of a range of incentives (including increased plot ratio) to encourage and support mixed use development;

·        Extension of the DTC via the rezoning of the Clark Street industrial area; and

·        Introduction of Additional Use areas (A74) fringing the DTC to provide certain low-impact business/commercial opportunities and a legible transition between land uses in the DTC and adjoining residential area.

 

Amendment 29, adopted for final approval by the Council in April 2018 (C1804/076) and gazetted in June 2019, introduced general development requirements into the Scheme for the ‘Regional Centre’ and ‘Centre’ zones.

These requirements were intended to provide a framework to guide development in the Busselton and Dunsborough City/Town Centres, to later be supported through preparation of Activity Centre Plans and urban design guidelines. The provisions were based on Local Planning Policy 3.8 Busselton Town Centre Guidelines and the State’s then draft Apartment Design Policy.

 

A significant change to the State’s planning framework occurred following that time, through introduction of the ‘Design of the Built Environment’ suite of policies:

·        In May of 2019, the former draft Apartment Design Policy was followed and replaced by State Planning Policy 7.3 Residential Design Codes Volume 2 – Apartments (R-Codes Vol. 2). This policy includes comprehensive planning and design standards for mixed use development in areas coded R40 and above, including within activity centres. It is a performance based policy – proposals are assessed against objectives and there is no deemed-to-comply assessment pathway.

·        At the same time the “old” R-Codes, which had previously been State Planning Policy 3.1 (SPP 3.1) and included provisions for multiple dwelling development, became State Planning Policy 7.3 Residential Design Codes Volume 1 (R-Codes Vol. 1), applying only to single houses and grouped dwellings.

·        State Planning Policy 7.2 Precinct Design (SPP 7.2) was introduced in December 2020. SPP 7.2 aims to ensure that precinct planning and design processes deliver good quality built environment outcomes that provide social, economic and environmental benefits. SPP 7.2 is applicable to all of Western Australia, whereas previously there had been policy guidance but no statutory requirements around the preparation of an Activity Centre Plan outside of the Perth and Peel regions.

 

The introduction of these State planning policies resulted in a number of unforeseen consequences:

·        The PSP development process has been delayed considerably due to the teething period that comes with a totally new policy (SPP 7.2), and indeed no local government to date has progressed a PSP to the stage of final approval.

·        The R-Codes Vol. 2 include new and/or changed provisions that did not exist in SPP 3.1, which have impacted the scale of development that can be proposed in the DTC. In particular, under SPP 3.1 the height of a building was assessed under deemed-to-comply and design principle criteria. For an R-AC3 proposal, the deemed-to-comply height for the top of an external wall was 18 metres (4 - 5 storeys). Under the R-Codes Vol. 2 however, the acceptable building height for an R-AC3 proposal is 6 storeys (indicatively 21 metres). As a performance based policy, proposals are to be assessed in the context of ‘element objectives’ (performance principles), even if they meet ‘acceptable outcomes’ (which are not to be considered ‘deemed to comply’).

·        There is no longer the same need to prepare urban design guidelines to support provisions in the Precinct Structure Plan, as building design considerations that were not previously included in SPP 3.1 are now comprehensively covered in the R-Codes Vol. 2.

 

Changes to the Scheme and the introduction of the R-Codes Vol. 2 and SPP 7.2 have shaped the development and direction of the PSP, and a concurrent Amendment to the Scheme is required to implement the majority of land use and built form provisions identified during the development of the PSP. Further detail is provided in the Officer Comment section below.

 


Issues related to Amendment 50

Amendment 50 was adopted by Council in October 2021 (C2110/076). The purpose of Amendment 50 was to down-code 21 residential lots fronting Geographe Bay Road from R80 to R60. At the time, the Council resolved that Amendment 50 be further considered by the Council, should the Minister make different or additional modifications, relative to those approved by the Council.

 

On 19 April 2022 the Western Australian Planning Commission (WAPC) advised that the Minister requires the Amendment to be modified in the manner specified in Attachment D. In summary:

·        Re-coding the majority of lots to R60 is supported; however Lots 115 and 116 Geographe Bay Road and Lots 139 and 140 Lorna Street are to be retained at R80 because amalgamation of the site has been approved by the WAPC, and a mixed use (mainly apartment) development on the site is substantially commenced at an R80 density.

·        Minor changes are to be made to clauses 4.3.2, 4.81 and 4.83 of the Scheme to update R-Code references, and introduce natural ground level as the point from which building height is to be measured.

 

Several of these modifications are different or additional to those supported by the Council. The Act provides that the Minister may direct the local government to modify a Scheme amendment, and the Regulations outline how a decision on a Scheme amendment is to be given effect. There is no opportunity for the Council or the Minister to alter the Minister’s decision, and therefore this report assumes that the Minister’s decision has been implemented. Further detail on the relevant sections of the Act and Regulations are provided in the Statutory Environment section below.

 

It is recommended that the Council note the Minister’s decision. The City would then arrange for the modification of Amendment 50, consistent with the Minister’s decision.

OFFICER COMMENT

The DTC is identified in the Local Planning Strategy (2019) as the principal activity centre in the western portion of the Busselton District. As such it is considered an ‘Activity Centre Precinct’ under the provisions of State Planning Policy 7.2: Precinct Design and draft State Planning Policy 4.2: Activity Centres. The PSP sets out to plan for the strategic growth and development of the DTC, and it aims for a vibrant place of community and visitor activity that is one of the main centres of economic, social and cultural life in the District.

 

The PSP is approximately 31.85 hectares in area and incorporates all roads, reserves and land that is zoned ‘Centre’, as well as some medium density Residential zoned land with Additional Use rights fringing the Town Centre. The PSP area also includes Tourism and Residential zoned lots immediately north of the intersection of Cape Naturaliste Road and Caves Road.

 

The PSP consists of two parts. Part One contains the PSP Map and sets out how the PSP is to be implemented through staging, subdivision and development requirements, local development plans, and additional information requirements. Part Two provides background, explanation, engagement outcomes and technical appendices. Key issues are identified throughout Part Two and recommendations for design considerations/actions occur in Section Six of Part Two, ‘Precinct Design Elements’. Part Two of the PSP informs and guides the implementation measures set out in Part One.

 


Key Issues

In order to identify key issues, the Part Two background analysis considers the physical and community context of the PSP and broader catchment area, and is informed by various technical reports and the outcomes of community engagement over a number of years.

The physical context section provides an understanding of location, landscape and environment, land use, tenure and ownership, built form and movement networks. The community context section provides an understanding of human and social aspects of the area, including demographics, culture and values, employment and economic activity, and existing housing.

 

Key issues identified through the Part Two analysis include:

·        Limited vacant land area to provide for the expected commercial floor space demand, particularly for Shop/Retail and Office/Business land uses. Potentially this could result in retail leakage, loss of employment opportunity, and loss of vibrancy and purpose in the DTC.

·        Limited housing choice and supply, despite the local planning framework promoting this aim. Conversely, changes to the State planning framework have resulted in unintended consequences, i.e. proposals for buildings of height, bulk and scale that were not anticipated when previous changes to the local planning framework occurred, which have exacerbated issues of concern for a portion of the community. The ability to accommodate housing in the DTC should be considered in the context of the ‘Activity Centre’ hierarchy in the District and region, population and visitor growth, land use and economic demand, urban structure and built form, placemaking and activation; and balanced against the priorities and expectations of all stakeholders.

·        Constrained ability for vehicles to travel into, through and around the area due to block size, physical constraints (Dugalup Brook) and no-through roads, contributing to vehicle congestion during peak seasons.

·        Lack of car parking supply to provide for expected demand in the long term, particularly all day car parking on the periphery of the DTC. Lack of alternative car parking options places a greater onus on new development proposals to provide car parking within development sites, possibly resulting in the under-utilisation of land through at grade car parking, or other poor design outcomes.

 

A number of other issues and areas for potential improvement have been identified, such as retention and enhancement of environmental value and amenity in the public realm; recognition of local Aboriginal knowledge, concepts and stories of place; and potential provision of a community and civic space in proximity to the DTC.

 

Implementation

Implementation of the PSP will occur though: the Scheme Amendment; subdivision and development requirements for local development plans and additional information requirements set out in Part One of the PSP; and various streetscape/landscape works by the City set out in Part One and in more detail in Part Two of the PSP.

 

Implementation is also largely dependent on the timing and willingness of individual landowners to develop their sites. In order to guide development for the duration of the PSP (10 years) and beyond that timeframe, the majority of land use and built form provisions are set out in the concurrent Scheme Amendment which is discussed in further detail below.

 

The Amendment aims to implement the recommendations of the PSP by proposing:

·        Revised residential density codings.

·        Revising other zoning arrangements.

·        Renaming the Centre zone to District Centre zone.

·        Changing the permissibility of some land uses.

·        Introduction of customised R-AC0 and District Centre zone development standards (including for height and setbacks).

·        Amendment of Schedule 2 “Additional Uses”.

 

Implementation measures set out in Part One of the PSP are:

·        The staging of key infrastructure and public realm improvements, which would require investment in a number of actions such as:

o   Establishing or enhancing a ‘green network’, including the relocation of power transmission lines from overhead to underground, to allow trees to grow fully.

o   Revegetating fragmented portions of public land; developing a register of significant trees located on public land; and replacement of civil infrastructure to mitigate the environmental impact of surface pollutants, as street upgrades occur.

o   In consultation with the Undalup Association and local elders, installation of an Aboriginal interpretive signage and art trail.

o   Investigation of new civic spaces including a temporary expandable event space around the intersection of Dunn Bay Road and Naturaliste Terrace, and setting aside land in the future for a multi-function community and civic space, near the PSP area.

o   Upgrades to the traffic and pedestrian/cyclist networks, including the extension of Clark Street, installation of roundabouts at either end of Cyrillean Way, improved pedestrian/cyclist connectivity to/from Dunsborough Lakes, and improved pedestrian crossing points along Dunn Bay Road.

o   Identification and/or acquisition of peripheral land for future expected car parking demand. 

·        Subdivision and development requirements primarily relating to the Residential-zoned portion of the PSP area, consistent with relevant Centre zone requirements in the Scheme (where there is a variation from the R-Codes).

·        Local development plan requirements for identified areas where key issues and principles are to be addressed in an integrated manner, across multiple development sites.

 

Key Land Use and Built Form Provisions

The key proposed changes to land use and built form provisions are set out in detail below. These changes are associated with the proposed District Centre zone and/or R-AC4 and R-AC0 density codings. The only areas to be identified are located in the DTC, meaning that these changes would have no impact on any other area of the District.

 

1.      Revised zoning and/or land tenure arrangements

The R-AC3 ‘activity centre’ density coding was introduced through Amendment 1 to the Scheme, coming into effect in 2017. At that time the R-Codes comprised a single volume that addressed requirements for all types of residential development, and ‘activity centre’ density codings were limited to four codings ranging from R-AC0 to R-AC3. In terms of building height, maximums were specified in metres rather than storeys. In summary:

·        R-AC0 did not specify any maximum height, but allowed for controls to be set out in a local structure plan or local development plan;

·        R-AC1 and R-AC2 allowed for maximum heights of 6 – 8 storeys;

·        R-AC3 allowed for a maximum height of 4 - 5 storeys.

 

At that time, R-AC3 was considered the most appropriate ‘activity centre’ density coding because R-AC1 and R-AC2 allowed for excessively high and dense development, and the R-AC0 controls could only be introduced through a local structure plan or local development plan, meaning that these plans would have needed to be prepared prior to the Scheme amendment. Further, structure plans and local development plans have a limited lifespan of 10 years.

 

In 2019 the R-Codes were split into two separate volumes; Volume 1 addresses low and medium density single house and grouped dwelling residential development, and Volume 2 addresses multiple dwelling (apartment building and mixed use) development in activity centres. A number of changes were introduced with Volume 2:

·        R-AC3 allowed for buildings of six storeys, to be assessed through performance principles, and building height (in metres) became ‘indicative’ rather than a maximum ‘deemed to comply’;

·        R-AC4 was introduced, allowing for buildings (subject to assessment through performance principles) of three storeys;

·        R-AC0 continues to have no building height specified, however there is now an option to set controls out in the local planning scheme.

 

The PSP context analysis recognises that six storey buildings may not be consistent with the current character and future needs of Dunsborough, meaning R-AC3 is no longer the appropriate ‘activity centre’ density coding. As a result, it is proposed that the area currently coded as R-AC3 would be re-coded to either R-AC4 or R-AC0:

·        R-AC4 – Land surrounding Clark Street, and three adjoining lots fronting Naturaliste Terrace, all previously zoned ‘Light Industry’ –

o   The area sits outside of the ‘core’ centre of commercial and social activity, and currently comprises a variety of lower intensity land uses.

o   The proposed R-AC4 coding would allow for appropriate development outcomes between the environmental and amenity value provided by Dugalup Brook to the south, and low density (R15) residential development to the north (noting that three storey height controls would apply along Clark Street, consistent with the residential area to the north).

o   In terms of the residential interface, the transition would be augmented by R-AC4 and R15 rear setback requirements and a 6 metre wide reserve between the residential and Clark Street lots, potentially resulting in an 18 metre separation between buildings.

·        R-AC0 – The remainder of the proposed District Centre zone is characterised by a variety of commercial and social activity, with the intensity of activity tending to progressively decrease away from the central roundabout at the intersection of Dunn Bay Road and Naturaliste Terrace –

o   The proposed R-AC0 coding provides an opportunity to introduce primary controls on a block-by-block or site-by-site basis, taking into account lot size, interface, existing landscaping and other localised factors.

o   These controls can include customised controls for building height, setbacks for lower and upper storeys, boundary walls and plot ratio, and can be introduced through the Scheme to ensure they will not fall away after a 10 year period.

 

Proposed District Centre zone and R-ACO development standards are discussed in further detail below (Part 5 of this report).

2.      Revising other zoning/tenure arrangements

The proposals/issues described in this section are included in the PSP but not in the Amendment. If ultimately supported by the Council and WAPC, however, a further scheme amendment may be necessary.

 

A number of small land parcel ‘anomalies’ are identified on the PSP Map for redesignation to ‘Recreation’ reserves. The various reasons for redesignation include:

·        There is a Threatened Ecological Community (TEC) ‘Banksia Dominated Woodlands of the Swan Coastal Plain’ (Priority 3) identified within the area;

·        The land parcel is fragmented and undevelopable;

·        The nominated area would provide a buffer between the road reserve and future development.

 

A portion of Lots 20 and 21 Clark Street have been identified on the PSP Map as a future road connection. The reasons for this proposal are:

·        Currently there is no road connection between the northern part of the PSP area and the arterial road Cape Naturaliste Road, adding a greater volume of traffic congestion to Naturaliste Terrace, Dunn Bay Road and the core of the town centre generally, and reducing the overall permeability and efficiency of movement through the PSP area. Dugalup Brook provides a physical barrier with no alternate connection point available.

·        The potential road connection has been discussed for more than 20 years, and more seriously since the introduction of the Dunsborough Town Centre Conceptual Plan in 2014. The preference would be for a negotiated outcome however, since 2014, a clear path to a negotiated outcome has not emerged.

·        While inclusion in the Amendment could assist in resolving the issue, the City is currently developing a micro-simulation traffic model for the DTC which will inform considerations of the PSP after consultation, and deferring that decision could allow for more engagement with stakeholders.

 

A portion of Lot 9020 Caves Road has been identified on the PSP Map for future redesignation as peripheral car parking. The reasons for this proposal are:

·        The PSP context analysis identified that there will be a short-fall of public car parking bays in the future, however there is limited public land available to provide peripheral, all-day parking.

·        Currently Lot 9020 is partially zoned ‘Residential’ and partially ‘Tourism’. Due to visual/landscape, environmental and traffic considerations, the land is not considered suitable for commercial or mixed-use development.

·        The site is located in close proximity to new development at the western end of Dunn Bay Road, and future use as a car park would provide convenient access to the DTC.

 

3.      Renaming the Centre zone to District Centre zone

This action had been identified for inclusion in the Scheme review, and therefore it is logical to consider it through this Amendment. The only area on the Scheme Map identified as Centre zone is located wholly within the PSP area, and this change would only affect the DTC.

 

The new definition would provide more clarity and reflect the contemporary Scheme zone format and hierarchy supported by the Minister. The name is commensurate with the size of the centre and scale of uses that already exist, and reflects the smaller size of the DTC relative to the Busselton City Centre (zoned Regional Centre) and the various smaller centres (zoned Local Centre).

 


4.      Change of permissibility for some land uses

Prior to Amendment 29 the Busselton and Dunsborough City/Town Centres were both zoned ‘Business’ meaning there was no ability to differentiate, in terms of land use permissibility, given the different scale and character of each centre.

 

Development of the PSP has provided an opportunity to review the permissibility of land uses specifically within the DTC, and tailor the zoning table to ensure that permissible land uses in the District Centre zone will be appropriate and achievable, in the context of the DTC specifically.

 

5.      Introduction of [District] Centre zone and R-AC0 development standards

Volume 2 of the R-Codes allows the opportunity to develop localised and site-specific primary controls for land coded R-AC0, and to set those controls out in the Scheme rather than a PSP.

 

In terms of building height, it is proposed that there would be a mix of three, four and five storey controls allocated to different sites within the R-AC0 area. Key factors contributing to a nuanced, three to five storey approach include:

·        Dunsborough is identified as a ‘Major Town’ in the endorsed City and sub-regional strategic planning framework; and development is encouraged in a manner that will support and enhance existing facilities, services and infrastructure, to enable a continuation as a main centre of economic, social and cultural activity. Key, relevant strategies set out in the City’s Local Planning Strategy are:

“8.2 a) Support and proactively plan for employment growth and economic development to support a growing population within established activity centre… frameworks, and through: ensuring sufficient land is identified at a strategic level; working pro-actively to ensure land is available for development when required; and identifying and pro-actively planning for emerging opportunities for employment growth and economic development.”

and

“8.2 c) Support and pro-actively plan for activity centre development as set out in the established activity centre framework, with activity centres… to be developed as centres of the social and cultural life of their communities and not just as shopping centres…. by:

Opportunities for delivery of medium or high density housing and tourist accommodation within and around all activity centres shall be pro-actively planned for.”

·        The Dunsborough [Town] Centre Commercial Growth Analysis (Pracsys, 2018. Refer Attachment 1 of the draft PSP document) identified that there is a lack of vacant land to provide for the expected demand for commercial floor space over the next 10 years. Additional building height would allow for future demand, for some land uses (especially car parking, office and residential uses) to be met on upper floors, reducing the likelihood of commercial ventures seeking floor space elsewhere and thus taking commercial activity away from the key activity centre. Providing additional commercial floor space would also ensure that the day-to-day needs of the service population can be provided for into the future, with the additional benefit of generating greater local employment opportunities.

 

·        Sites can vary greatly in terms of width and depth:

o   Some smaller sites (such as those bound by Naturaliste Terrace, Hannay Lane and Dunn Bay Road) could not accommodate taller buildings without resulting in built form that appears to be overbearing in terms of bulk and scale. Therefore it is recommended that these sites are restricted to three storeys.

o   Conversely, carefully designed five storey buildings on larger sites could result in relatively low impact. Larger lots at the western end are bounded by Caves Road and the Dunsborough playing fields to the south, while much of the north side is bound by Dugalup Brook. There is very little residential development directly abutting this area of the Centre zone.

o   Upper storey setback requirements, applied to four and five storey development, would alleviate the impact of the bulk and scale of buildings, and can be accommodated on larger and especially deeper lots.

·        Various design factors can assist in alleviating the perception of height, including:

o   Restricting the plot ratio resulting in reduced net lettable area and potentially, a greater amount of alfresco and/or landscaped outdoor areas; 

o   Restricting buildings to lower heights close to roads and other boundaries, and stepping back upper storeys (including balcony roofs);

o   Ensuring that the ground floor has an activated frontage, including commercial land uses and large windows to ‘draw the eye’, and wide footpaths and deep awnings for pedestrian comfort and amenity.

·        Various improvements to the public realm identified through the PSP would contribute to increasing the overall amenity of the town centre and alleviating the perception of building height, including actions such as the establishment or enhancement of green linkages throughout the town centre, and sinking power distribution lines to enable the planting of taller trees.

·        In order to maintain the vibrancy of an activity centre, it is also important to ensure that building height is sufficient to incorporate car parking within a building rather than abutting the street at ground level, which could result in a lower ‘suburban centre’ level of vibrancy.

 

Each of the factors above have been taken into consideration when drafting the R-AC0 and broader District Centre zone site and development requirements, particularly when devising controls for boundary walls, the height of buildings adjacent to boundaries, upper storey setbacks, and overall plot ratio. 3-5 storey building heights, especially with 5th, 4th and in some cases 3rd storeys set back from the street, will retain a fairly low-rise streetscape character, but still provide sufficient density to build vibrancy and support investment.

 

6.      Amendment of Schedule 2 “Additional Uses”

When A74 was introduced for a number of properties on the periphery of the Busselton and Dunsborough City/Town centres, condition 5 was included to provide that urban design guidelines would be prepared to guide development for mixed use proposals.

 

With the introduction of the PSP and Volume 2 of the R-Codes, which applies to mixed use development, this condition is no longer relevant to the A74 properties on the periphery of the Dunsborough town centre. It is proposed that relevant properties are removed from A74 and re-inserted as a new Additional Use provision ‘A84’.

The A84 ‘description of land’ would apply to the same land that has been removed from A74. Condition 3 would be rewritten to clarify the circumstances in which a nil front setback could be considered and a new, subsequent condition would be introduced to provide design guidance for an active frontage. Condition 5 would be deleted as these requirements have otherwise been met through the PSP and Volume 2 of the R-Codes.

 

Conclusion

The PSP and associated Amendment support the DTC as the principal activity centre in the western portion of the District, and have been prepared in accordance with the policy measures set out in State Planning Policy 7.2: Precinct Design and draft State Planning Policy 4.2: Activity Centres.

 

The PSP sets out to plan for the strategic growth and development of the DTC, and it aims for a vibrant place of community and visitor activity that is one of the main centres of economic, social and cultural life in the District.

 

Statutory Environment

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

 

Planning and Development Act 2005 (the Act)

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

 

Part 5, Division 4, section 87 (2) (b) of the Act provides that the Minister may direct the local government to modify a Scheme amendment in a manner the Minister specifies before the amendment is resubmitted for approval.

 

Planning and Development (Local Planning Schemes) Regulations 2015 (the Regulations)

The Regulations came into operational effect on 19 October 2015 and introduced deemed provisions for the preparation, advertising and approval of structure plans (which term includes precinct structure plans). Local governments are to have ‘due regard’ to approved structure plans when making decisions relating to subdivision and development.

 

The Regulations identify three different levels of amendments – basic, standard and complex. The resolution of the local government is to specify the level of the amendment and provide an explanation justifying this choice.  This Amendment is considered to be a ‘standard’ amendment.

 

Part 5, Division 5 of the Regulations outlines how a decision on a Scheme amendment is to be given effect. Regulation 63 (2) provides that, within 42 days of the Minister requiring the local government to modify and amendment, the local government must modify the amendment as required, execute the modified amendment, and submit to the Minister a copy of executed documents.

 

Local Planning Scheme No. 21

LPS 21 sets out the aims for the Scheme area, and controls, regulates and guides orderly and proper land use and development. A local planning scheme is to be read in conjunction with the Planning and Development (Local Planning Schemes) Regulations 2015.

 

Provisions that are applicable to the PSP and Amendment are set out in the table below.

 

PROVISION

APPLICATION

LPS 21 Scheme Map

Zoning in the PSP area.

Clause 3.2 Zone Objectives

Centre zone:

·      To provide a genuine centre of community life, socially, culturally and economically.

·      To provide a basis for future detailed planning in accordance with the structure planning provisions of this Scheme or the Activity Centres State Planning Policy.

·      To ensure that development provides for activation of the street and public spaces, high quality design and a variety of land uses.

·      To provide for medium to high density residential development.

Table 1

Permissibility of land uses within the defined zones.

Part 4 General Development Requirements

4.2 and 4.3 - Residential Design Codes and Special Application of Residential Design Codes (respectively) for application of the R-Codes for R-AC3 coded lots.

4.8 Height of Buildings - for building height within the coastal zone and R-AC3 coded lots.

4.20 Consolidation and Fragmentation of Land in the Regional Centre and Centre Zone - for the consolidation of land for integrated development and redevelopment.

4.21 Development in the Regional Centre and Centre Zones - design guidelines not otherwise addressed in an endorsed ACP/PSP.

4.22 and 4.23 respectively provide for Service Access and Service Courts in the Regional Centre and Centre Zones.

4.24 and 4.25 respectively provide for Parking and Cash-in-Lieu of Parking in the Regional Centre and Centre Zones, whereby if parking cannot be provided at the specified rate then a cash-in-lieu contribution may be required.

Part 5 Special Control Areas

5.12 Development Contribution Areas – provides for a development contribution plan to be required for the pre-determined DCA, and various provisions relating to contributions arising.

5.13 Drive-Through Facility Control Area – not permitted unless discretion has been exercised.

Schedule 2 Additional Uses

A74 (Residential zone) – ‘Guesthouse’, ‘Medical Centre’, ‘Office’, ‘Consulting Rooms’, ‘Restaurant/Café’, ‘Shop’ and ‘Tourist Accommodation’.

A83 (Centre zone) – ‘Service Station’ and ‘Motor Vehicle Wash’.

Schedule 10 Development Contribution Area

Sets out the operational detail for DCA 1 (which is inclusive of the PSP area) including: infrastructure and administrative items to be funded; method for calculating cost contributions (applies to new dwellings); and the period of operation.

 

Relevant Plans and Policies

The key plans and policies most relevant to the proposal include:

1.         Leeuwin-Naturaliste Sub-regional Strategy (2019) (LNSRS)

2.         City of Busselton Local Planning Strategy (2019) (LPS)

3.         Dunsborough Town Centre Conceptual Plan (2014)

4.         State Planning Policy 3.0: Urban Growth and Settlement (2006) (SPP 3.0)

5.         Draft State Planning Policy 4.2: Activity Centres (2020) (SPP 4.2)

6.         State Planning Policy 7.2: Precinct Design (2020) (SPP 7.2)

7.         State Planning Policy 7.3: Residential Design Codes Volume 2 – Apartments (2019) (R-Codes Vol. 2)

 

Each is discussed below under appropriate subheadings.

 

1.    Leeuwin-Naturaliste Sub-regional Strategy (2019) (LNSRS)

The LNSRS is a strategic plan to manage change in the sub-region by guiding growth and development to achieve positive social, economic and environmental objectives.

 

The LNSRS identifies Dunsborough as the only ‘Major Town’ in the sub-region settlement hierarchy, servicing a larger population catchment and offering a greater number of services relative to the lower tier settlements of ‘Town’ and ‘Village’.  The strategy aims to encourage development in larger settlements in a manner that will support and enhance existing facilities, services and infrastructure, and facilitate the planned and timely provision/expansion of same. The PSP seeks to reinforce Dunsborough as a vibrant and attractive activity centre, guiding and facilitating desirable mixed use development in a manner that best utilises infrastructure and services and retains character and amenity, and the environmental values of the public realm.

 

The PSP accords with the LNSRS by serving to complement and inform higher level strategic planning for the Dunsborough townsite and environs as a whole.  The PSP addresses key issues identified in the LNSRS within the TC such as vehicle access, movement networks and car parking.

 

2.    City of Busselton Local Planning Strategy (2019) (LPS)

The LPS sets out the longer-term planning direction for the District, and provides strategic rationale for appropriately applied decisions relating to orderly and proper planning and development.

 

The objectives and strategies highlighted below provide for the preparation of the Dunsborough PSP, and have been considered in the contextual analysis and implementation requirements of the PSP.

 

Theme 1: Settlement and Community

Objective 7.1 a)

The continued growth as the principal settlement in the District of the Busselton-Vasse Urban Area as a regional centre and the Dunsborough Urban Area as a major town through: the redevelopment and consolidation of the existing urban areas...

Strategy 7.2 f)

Support and pro-actively plan for urban consolidation and redevelopment (including through increases in permissible residential density) in existing urban areas, especially in areas close to the… Dunsborough Town Centre…. Support other proposals for redevelopment/ consolidation (including through increases in permissible residential density) in existing urban areas, or for increases in planned development density in urban growth areas, especially those in close proximity to activity centres or high amenity areas, such as in coastal locations, adjacent to open space, or which are close to significant community facilities.

Strategy 7.2 h)

Generally, but especially in urban growth areas, plan for housing choice, diversity, health, wellbeing and ageing in place, with a mix of housing types and lot sizes, with higher densities in proximity to activity centres...

Theme 2: Activity Centres and Economy

Objective 8.1 d)

The continued growth of the Busselton City Centre and Dunsborough Town Centre as the main centres of the economic, social and cultural life of the district.

Strategy 8.2 a)

Support and proactively plan for employment growth and economic development to support a growing population within established activity centre… frameworks, and through: ensuring sufficient land is identified at a strategic level; working pro-actively to ensure land is available for development when required; and identifying and pro-actively planning for emerging opportunities for employment growth and economic development.

Strategy 8.2 c)

Support and pro-actively plan for activity centre development as set out in the established activity centre framework, with activity centres… to be developed as centres of the social and cultural life of their communities and not just as shopping centres. This strategy will be achieved, in part, by:

·    All… significant expansions of existing activity centres shall be accompanied by an ‘Activity Centre Plan’ [now called a Precinct Structure Plan] and ‘Retail Sustainability Assessment’ and be developed along predominantly ‘main street’ lines, with activated public streets and high levels of pedestrian amenity, and with a mix of public spaces (parks and piazzas), shop, office, café/restaurant/bar/entertainment, tourism and community uses.

·    Opportunities for delivery of medium or high density housing and tourist accommodation within and around all activity centres shall be pro-actively planned for.

·    Progress preparation of an Activity Centre Plan for… Dunsborough to provide future planning direction for these activity centres.

Strategy 8.2 d)

Significant office development should be located within or adjacent to the... Dunsborough Town Centre…

 

The LPS supersedes previously endorsed sector-based strategies in the City of Busselton, including the Local Commercial Planning Strategy (2010) and the Local Cultural Planning Strategy (2011).

 

3.    Dunsborough Town Centre Conceptual Plan (2014)

The DTCCP includes planning initiatives to rezone land within the PSP area to promote and accommodate increased density for residential and mixed use purposes, activation and connectivity to the foreshore area. These initiatives were largely implemented through Amendment 1 to LPS 21 (gazetted 4 August 2017).

 

4.    State Planning Policy 3.0: Urban Growth and Settlement (2006) (SPP 3.0)

SPP 3.0 sets out the underlying principles and considerations applying to the orderly and proper planning of urban growth in settlements across Western Australia.

 

The PSP responds to SPP 3.0 by supporting higher density residential development in and around the TC; by consolidating retail, employment, recreational and other activities attracting large numbers of people in the recognised and established activity centre; and by enabling mixed use development providing for a wide range of living, employment and leisure opportunities over time.

 

The preparation of the PSP further responds to SPP 3.0 by actively engaging with the local community and other relevant stakeholders, with the of aim of guiding desirable and optimum urban design and development to create and enhance community identity, sense of place, walkability, liveability and social interaction.

 

5.    Draft State Planning Policy 4.2: Activity Centres (2020) (SPP 4.2)

The intent of SPP 4.2 is to ensure planning and development adequately considers the distribution, function and broad land use considerations for activity centres. SPP 4.2 applies more particularly to the Perth, Peel and Greater Bunbury Region Scheme areas, but its guiding principles may also be appropriately applied outside those areas.

 

The City of Busselton Local Planning Strategy (LPS) identifies a hierarchy of activity centres and the Dunsborough TC aligns with the draft SPP 4.2 category of a ‘District Centre’. The PSP further meets the objectives of SPP 4.2 by addressing matters such as development intensity and land use mix, density and diversity of housing, access and movement networks, and due consideration of environmental, social and economic values.

6.    State Planning Policy 7.2: Precinct Design (2020) (SPP 7.2)

SPP 7.2 provides guidance on the design, planning, assessment and implementation of precinct structure plans, and applies to activity centres and precincts, as identified in SPP 4.2, throughout Western Australia.

 

SPP 7.2 has been drafted in the context of the design principles of SPP 7.0, assisting with the guidance and evaluation of orderly and proper planning and development and how that best contributes to the overall objectives of the design of the built environment.

 

The PSP responds to SPP 7.2 by addressing land use, density and development (including built form), access arrangements, infrastructure, environmental assets and community facilities in order to inform consideration and assessment of future subdivision and development proposals.

 

7.    State Planning Policy 7.3: Residential Design Codes Volume 2 – Apartments (2019) (R-Codes Vol. 2)

The R-Codes Vol. 2 provide comprehensive planning and design standards for the development of apartments (multiple dwellings) in residential areas coded R40 and above, including dwelling components of mixed use development in activity centres.  The R-Codes Vol. 2 guide and assist strategic planning and the preparation of local government controls, design guidelines and the assessments.

 

The local government may vary or augment design elements of The R-Codes Vol. 2, provided these remain consistent with the various design element objectives. One such mechanism is the preparation of an activity centre plan (including a Precinct Structure Plan).

 

Financial Implications

There are no financial implications associated with the officer recommendation.

 

Stakeholder Consultation

If the Council resolves to initiate the Amendment and support the PSP proposal, the relevant Amendment documentation would be referred to the Environmental Protection Authority (EPA) for consideration of the need for formal assessment under Part IV of the Environmental Protection Act 1986.  Should the EPA resolve that the Amendment does not require formal assessment, then the Amendment document and the PSP will be advertised for 42 days in accordance with the Planning and Development (Local Planning Schemes) Regulations 2015.

 

To facilitate consultation, the following actions will be undertaken:

·        Targeted notices to property owners within and abutting the PSP area, and Dunsborough-based stakeholder groups.

·        Notices in the local newspaper and through the Bay to Bay e-newsletter.

·        A notice on the City’s website, including a portal to be created using the City’s Your Say platform for the online lodgment of submissions.

·        Information sessions (including through walking tours) in Dunsborough for landowners, stakeholder groups and the community.

·        Engagement with the recently formed Dunsborough Reference Group.

 

Independent facilitation of some aspects of consultation may be investigated.

 

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.         Seek further information before making a decision.

2.         Modify the Amendment and/or PSP before advertising.

3.         Decline the initiation of the Amendment and/or PSP.

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

CONCLUSION

The PSP and Amendment provide for the development of the DTC in accordance with the objectives of the statutory environment, and State and Local plans and policies. Officers recommend that the Council adopt both proposals for the purposes of public consultation, which will include referral of the Amendment to the EPA, and subsequent referral to relevant state government agencies, landowners, stakeholder groups and community members.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The implementation of the Officer Recommendation would require initial referral of the Amendment to the Environmental Protection Authority, which would occur within one month of the Council decision.


Council

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11 May 2022

13.1

Attachment a

Aerial Photograph

 


Council

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11 May 2022

13.1

Attachment b

Draft Dunsborough Precinct Structure Plan

 






















































































































































































































































Council

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11 May 2022

13.1

Attachment c

Scheme Amendment Map

 


Council

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11 May 2022

13.1

Attachment d

Amendment 50 - Minister's Decision

 



 


Council                                                                                      308                                                                    11 May 2022

14.             Engineering and Work Services Report

Nil


Council                                                                                      319                                                                    11 May 2022

15.             Community and Commercial Services Report

15.1           BUSSELTON JETTY INC. JETTY VILLAGE PROPOSAL

STRATEGIC THEME

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

STRATEGIC PRIORITY

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

SUBJECT INDEX

Busselton Jetty

BUSINESS UNIT

Corporate Services

REPORTING OFFICER

Property Management Coordinator - Sharon Woodford-Jones

Legal Services Coordinator - Cobus Botha

Director, Community and Commercial Services - Naomi Searle

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

Attachment a   Confidential Village Project Business Case (April 2022)

Attachment b    Village Project Concept Plans

Attachment c    Confidential Village Project Financial Projections (2019)

Attachment d   Confidential Village Project Financial Projections (2022)  

 

OFFICER RECOMMENDATION

That the Council resolve to:

1.         Support the proposed Busselton Jetty Village project as outlined in this report (“Village Project”);

2.         Delegate power and authority to the Chief Executive Officer to negotiate and enter into a legal agreement with Busselton Jetty Inc. to formalize the arrangements for the delivery and operation of the Village Project, in accordance with the terms and conditions outlined in this report and subject to the approval of the Minister for Lands and the Department of Transport.

EXECUTIVE SUMMARY

Following the securing of Federal and State Government funding for the development of the Australian Underwater Discovery Centre (AUDC) project, Busselton Jetty Inc. (BJI) completed detailed designs and sought cost estimates for construction of the AUDC.   The project has been rendered unviable at this stage due to cost estimates exceeding the available budget and as such, BJI has re-scoped the project to enable it to be undertaken as a two-staged process; stage one being the construction of the Busselton Jetty Village and services upgrades (“Village Project”) to enable stage two, the AUDC, to be undertaken in the future.  BJI has now requested formal approval to undertake stage one resulting in the City recommending that Council enter into  a licence agreement, the subject of this report.

BACKGROUND

BJI is a Busselton based voluntary incorporated association with, among other things, the following objectives:

·        Raising funds to protect and preserve the Busselton Jetty and the environment around it; and

 

·        Being resourceful, financially viable and economically sustainable to ensure it meets its obligation to provide funds for the preservation and maintenance of the Busselton Jetty.

On 30 October 2009 the City and BJI entered into a licence agreement (Busselton Jetty Licence) in terms of which BJI was granted the right to conduct certain commercial activities at/on the Busselton Jetty in consideration for payment of an annual licence fee, and also assumed certain maintenance obligations (Licenced Activities).

 

The Licenced Activities include collecting entrance fees (from persons entering the Busselton Jetty from its land side) and operating the Busselton Jetty train, the underwater observatory (located near the northern end of the Busselton Jetty) (UWO) and the Interpretive Centre (IC) – that is the ticket office/retail outlet at the jetty entrance. The Licenced Activities constitute BJI’s main business and is BJI’s main source of revenue. 

 

In 2016, following a review of the Busselton Jetty Licence, the City and BJI agreed to extend the term of the BJI Jetty Licence for a further 42 years (the initial term now expiring in 2038 with BJI having an option to extend the initial term for 3 further terms of 7 years each). As part of this review the Busselton Jetty Licence was also amended to redefine the way the licence fee payable by BJI is calculated. Further detail about the licence fee is provided in the financial implications section of this report.

 

In 2016 Busselton Jetty Inc (BJI) commissioned a feasibility study to identify revenue generating opportunities with the objective of ensuring the organisation’s long term sustainability and to maximise revenue raising to preserve and maintain the Busselton Jetty.  Through this study a two-staged development was identified that would value-add to the visitor experience and increase revenue streams; stage one being the Busselton Jetty Village project, and stage two being a new underwater discovery centre – the AUDC. 

 

In 2018 BJI secured Federal Government funding for the Village Project, progressed detailed designs and requested formal approval from the City to undertake the estimated $1.8M project.  At the Ordinary meeting of Council on 11 December 2019, Council formally considered the matter and resolved (C1912/266), amongst other things, to authorise the Chief Executive Officer (CEO) to negotiate and enter into a licence agreement with BJI for the delivery and operation of the project based on certain terms and conditions and subject to obtaining relevant approvals, and a licence fee structure payable by BJI as outlined in the financial implications section of this report.

 

However in 2019 BJI was successful in obtaining $13m in Federal Government funding to progress the AUDC (stage two) project and as such, the Village Project (stage one) was put on the backburner and the licence agreement was not executed.

 

In 2020 BJI contracted engineering firm Subcon to undertake the design and construction of the AUDC, and incorporated the Village Project to enable both stages to be undertaken at the same time should the available budget extend to the entire project.  Aware of rising construction costs, BJI sought State and Local Government assistance towards the project.  In 2021 the State Government announced a contribution of $9.5m. 

 

However in late 2021 BJI completed detailed designs and received cost estimates which were some $25m over the available budget.  Unable to secure the additional budget, BJI re-scoped the project to meet a $26m budget and redeveloped their business case (see attachment A) for the construction of the Village and upgrade of services to enable stage two (AUDC) to be developed in the future.  BJI are now requesting formal approval to undertake the project as per the attached concept plans (see attachment B) comprising the following:

·        An Australian Marine Park interpretation zone featuring marine biology exhibits, new technology to explain why Australia’s oceans are so important to human life, interactive activities for all ages and research facilities for University students, lecturers and scientists;

·        Underwater viewing from a mobile 12 seat glass bottom submarine that will run tours every half hour;

·        Night underwater dining;

·        Three function areas for corporate guests, birthdays, weddings, balls;

·        An exhibition space where organisations can host travelling displays;

·        New artistic underwater habitats/artificial reefs and sculptures (including ship, reef balls, habitat structures) plus potential aquaculture projects to provide fish habitat and attraction;

·        Access platforms and ladders for divers, snorkellers and swimmers to easily access the new underwater habitats, reefs and artwork, a safe roped off area to protect them from boats, and then access to new shower and change room facilities to enhance their experience;

·        Enhanced underwater lighting for night viewing from the Underwater Observatory or night divers, swimmers and snorkellers;

·        Interactive/interpretive experiences with a variety of technologies and techniques, expanding the visitor experience;

·        A new platform at the end of the Jetty with the potential to allow boats to park up and visit the Ocean Café and new facilities;

·        A food and beverage Village to meet customer demand for food and drinks at the end of the Jetty, featuring WA’s best produce, wines and beers;

·        Three new marine themed electric vehicles to transport people from the start of the Jetty to the end, and back again making access for the elderly or people with young children a lot easier; and

·        Upgrades to the end of the Jetty Power, Water, Sewerage, Fire services and Fibre Optics to future proof facilities and ensure the main utilities are ready for the installation of the Australian Underwater Discovery Centre in the future.

OFFICER COMMENT

Information provided by BJI indicates sufficient justification for the Village Project and also indicates that BJI has the capacity and resources to successfully deliver the project.

 

Council previously endorsed (C1912/266) the following terms and conditions to form the basis of a Jetty Village licence agreement with BJI, which BJI has agreed to:

·        Licensed activities

             Undertaking and completing construction of the buildings and other structures comprising the “Village”, operating a retail food and beverage outlet, undertaking marine interpretive/educational activities within the licenced area, use of the designated building for office and  administration purposes, provision of public facilities such as ablutions, showers, storage lockers and other amenities ancillary to the licenced activities and, with the City’s prior approval, use of the licenced area as a multi- purpose function and events facility.

·        Licensed area

             The section of the Busselton Jetty (approximately 150 meters) to the north of the UWO, the location and layout (conceptually) is shown on the plan attached to this report.

 


·        Licence non-exclusive

             The licence is non-exclusive and will not create in or confer or grant BJI any tenancy, estate or interest in the Busselton Jetty or Reserve 46715, other than a contractual right for BJI to use the designated licenced area for the licenced activities. In addition the licence will be granted subject to any other rights or interests which exist or which may be created in respect of the Busselton Jetty or Reserve 46715. This means that the City will not be precluded from permitting in future any further activities at/on the Busselton Jetty (e,g activities such as berthing for cruise ships, sporting events, filming and activities for educational purposes).

 ·       Approvals required

             The licence is granted subject to BJI and the City obtaining all approvals and consent required for the Village Project. These include ministerial consent in accordance with the Land Administration Act, approval from Department of Transport as required under the Jetties Act and development approval in accordance with the City’s local planning scheme.

·        Structural integrity

             BJI must obtain City approval of the design and structural integrity of the proposed buildings and other structures to be constructed. BJI will also be required to demonstrate that the proposal will not impact on the structural integrity of the Busselton Jetty.

·        Term 

             BJI’s project Management Plan indicates “a design life of all structural elements of 25 years”. However the term of the Busselton Jetty Licence is for a 21 years, plus three further 7 year options.  The first option is due in April 2038.  It is therefore recommended that the minimum term be aligned to this, with any further term to be approved by the City and the Minister for Lands, subject however to the term not exceeding the term of the Busselton Jetty Licence.

·        Jetty Village Licence fee

             The proposed licence fee payable by BJI to the City is discussed in the FINANCIAL IMPLICATIONS section of this report.

·        Public access

             BJI must ensure that the licenced activities do not restrict public access to the licenced area or any other section of the Busselton Jetty. However BJI will be allowed to determine in its sole discretion the “Village” trading hours, BJI may reserve the right of admission to all buildings and, as is currently the case with the UWO and Interpretive Centre, may for security and safety purposes lock up and adequately secure all buildings and other structures within the “Village” precinct.

·        Construction works and licenced activities will be at BJI cost and risk

             BJI will be responsible to undertake all construction works and operate all licenced activities at its cost and risk. This includes ongoing maintenance of all buildings and other structures.

·        Construction clauses

             As BJI will be constructing buildings and other structures on Crown land, the licence agreement will include a number of terms and conditions detailing BJI’s obligations and liabilities during the construction phase of the Village Project including up to date work health and safety requirements appropriate for a project such as this.


·        Performance bond

             To better secure BJI’s obligations during the construction phase of the project, City officers initially proposed that BJI provide the City with a performance bond. BJI pointed out that the City’s risk in this regard should mostly be covered by the fact that the majority of the buildings/structures will be fabricated off-site and, in addition, that BJI’s builder will be required to provide a bond or retention money to secure its due performance under the construction contract between BJI and the builder. It is considered that these measures sufficiently mitigate the City’s relevant risk and it is therefore recommended that the City waives this requirement.

·        Insurances

             BJI will be required to effect and maintain at its cost adequate construction, public liability and workers compensation insurance.

·        General conditions

             The proposed licence agreement will include “general” conditions similar to those contained in the existing Busselton Jetty Licence, e.g BJI’s obligation in relation to keeping of accounts, determination of key performance indicators and BJI’s compliance with those KPIs. No additions or alterations to the Busselton Jetty will be allowed without the City’s prior approval and terms and conditions dealing with default, damage to or destruction of the Village and Busselton Jetty, licence fee abatement in such events, holding over and surrender and reinstatement of the licenced area upon termination of the licence agreement will also be included.

 

Further to this, additional terms and conditions are proposed which are consistent with the terms and conditions negotiated as part of the draft AUDC licence agreement:

·        Insurances

             City will insure the Village structure, similar to the UWO and Interpretive Centre the cost of which will be reflected in the calculation of the annual licence fee.

·        Minimum Licence Fee

             Minimum licence fee as set out in the Jetty Licence Agreement to increase commensurate with the agreed Village asset maintenance plan annual annuity and annual building insurance value.

·        OHS

             Given that it is likely the City’s relationship with BJI from a workplace health and safety law perspective will be deemed principal/main contractor the agreement will include appropriate conditions in relation to the same.

·        City Maintenance Plan

             Through the Jetty Licence agreement the City is responsible for the structural maintenance of the Jetty, UWO and IC.  BJI is responsible for the non-structural items.  However there are certain items where the parties have not reached agreement on what is defined structural or non-structural, such as the UWO air conditioning unit, and as such the maintenance responsibility remains in limbo.  To remove this it is proposed that the City’s responsibilities be clearly outlined in a ‘City Maintenance Plan’.  Any items excluded from this would form the maintenance responsibility of BJI.  It is intended that the Village Project reflects this.

 


Legal Structure

It is considered that a licence agreement based on the above terms and conditions is the most effective way of providing BJI with a formal operating framework encompassing the legal and commercial arrangement between the City and BJI in relation to the Village Project.  The legal agreement can be structured in a number of ways including:

·        an amendment/variation to the existing Jetty Licence agreement; or a

·        standalone Jetty Village licence agreement.

 

Due to the nature and extent of negotiations for both the Jetty Village and AUDC projects, it is recommended that the CEO determines the best mechanism to achieve the Jetty Village project.  At this stage it is the preference of Officers to vary the existing licence agreement, however it may be appropriate to review the entire legal structure under which BJI operates the Jetty in the short to medium term.

 

Statutory Environment

Land Administration Act 1997 (WA) (LAA)

The Busselton Jetty is constructed on Reserve 46715, which is Crown land reserved under section 41 of the LAA for the purpose of “Recreation, Tourism. Heritage, Education and Marine Research and purposes ancillary or beneficial to that designated purpose”. Pursuant to section 46 of the LAA the Minister for Lands may by order vest care, control and management of a reserve for its designated purpose with a person (including a local government).

 

Care, control and management of Reserve 46715 has been vested in the City on conditions set out in the Management Order. The City has the power to grant, subject to obtaining the Minster’s prior approval, a lease, sublease or licence over any part of the Reserve for purposes consistent with the designated purpose provided the grant does not substantially interfere with the ability of the general public to access the jetty. 

 

Under the Management Order the City may, subject to the other conditions of the Management Order, grant a lease or licence for a term that is not to exceed in total 49 years and which may comprise an initial term of not more than 25 years, with an option to renew for a further term not exceeding 24 years.

 

Other relevant conditions of the Management Order include a requirement for the licensee to:

·        insure structures or improvements for replacement value

·        take out other relevant insurances appropriate to the intended use

·        maintain the structures and improvements; and

·        have a fund or means to meet the maintenance requirements of the structures and improvements.


In terms of section 18 of the LAA a management body must obtain prior Ministerial approval for any lease or licence granted by that management body in respect of Crown land. This means that the City must obtain prior Ministerial approval for any lease or licence granted by the City in respect of the Busselton Jetty or Reserve 46715. In principle approval for the new Jetty Village proposal has been sought from the Department of Planning Lands and Heritage (DPLH) who have confirmed ‘officer level’ support for the same. The final format of the licence agreement will be scrutinised by the DPLH and Ministerial approval will be required before the licence is finalised. 


Jetties Act 1926 (WA) (Jetties Act)

The Busselton Jetty is managed and operated under a jetty licence granted to the City by the Department of Transport under the Section 7 of the Jetties Act. In terms of this licence the City:

·        May only use the Busselton Jetty for the use permitted under this licence (which includes operation of the existing UWO);

 

·        May appoint a person or entity to undertake its management obligations (or some of them) in respect to the Busselton Jetty;

 

·        Must maintain the Busselton Jetty in accordance with a pre-approved maintenance plan;

 

·        Must not, and must not permit, any structural changes or additions to the Busselton Jetty without the Department’s prior approval; and

 

·        When seeking approval for structural changes or additions, must submit detailed plans of and reasons for the proposed changes and a maintenance plan for ongoing maintenance of any new structural addition.

 

The Department of Transport may impose a number of conditions on BJI, aimed at protecting the structural integrity of the Busselton Jetty. These conditions will be dealt with in the proposed licence agreement.

 

Local Government Act 1995 (WA) (LGA)

Section 3.58 of the LGA regulates the disposal of property by a local government (including “the whole or any part of the interest of a local government in property”) whether by sale, lease or other means. In terms of section 3.58 a local government is required to give local public notice when disposing of “property”, unless the “property” is disposed of by way of a public tender or public auction. However under regulation 30 (2)(b) of the Local Government (Functions & General) Regulations 1996 disposition of local government property to charitable or benevolent organisations is excluded from the requirements under section 3.58.

 

Therefore, to the extent that the proposed licence agreement between the City and BJI could be considered “disposal” of local government “property” as contemplated under section 3.58 of the LGA, the exemption under regulation 30 (2)(b) will apply.

 

Local Planning Scheme No. 21 (the Scheme)

A Development Application (DA) is required for any works undertaken by BJI on the Jetty as no relevant exemptions apply under the Planning and Development (Local Planning Scheme) Regulations 2015 (the Regulations) or the Scheme.  While an approval was issued by the Regional Joint Development Assessment Panel for AUDC (DA21/0348), an amendment is required to include the Marine Discovery Centre within the Village as Stage 1 of the proposal. 

 

The proposed modification to the DA will be considered against the relevant provisions of the Regulations, the Scheme and any relevant policies.  It is also noted that the Jetty is included on the City’s Heritage List and the State Heritage Register which requires referral of any proposed to the Heritage Council for consideration against the Heritage Act 2018.  Should be Village be constructed ahead of the Underwater Discover Centre, this would be considered ‘substantial commencement’ which would allow for Stage 2 of the proposal (the AUDC) to be constructed at a later date without further approvals (subject to there being no changes to the endorsed plans).

 

Relevant Plans and Policies

The officer recommendation aligns to the Busselton Foreshore Master Plan, where activation of the Busselton foreshore is identified as a key priority.

 


Financial Implications

Note, all amounts mentioned in this report are exclusive of GST.

 

Construction costs

BJI has advised sufficient funding has been secured to allow them to progress with implementation of the Village Project and provided the following indicative costing information:

·        The estimated project costs total $26.04m, including fit out;

·        $25.24M of funding has been secured from Lottery West, State and Federal grant funding, and BJI funds; and

·        BJI is applying to Lottery West for a further $800k to meet the required budget.  Should this not be secured, BJI could reduce the overall project budget, noting that a requirement of the Federal Government’s funding agreement is for BJI (or other sources) to contribute 50% in matched funding, being $13m.

 

Licence fee

The licence fee payable by BJI pursuant to the existing Busselton Jetty Licence (that is for collecting entrance fees and operating the Busselton Jetty train, the UWO and the Interpretive Centre) is based on a percentage of BJI’s “Gross Revenue” and payable in bi-annual instalments into the Jetty Maintenance Reserve Account. In addition to this licence fee, rent income from commercial sites/operations at the Busselton Foreshore (including the existing Busselton foreshore cafes, the microbrewery and Hilton hotel development) is paid into the Jetty Maintenance Reserve Account to contribute towards the costs of maintaining the Busselton Jetty. Currently the annual maintenance costs of the Busselton Jetty (as budgeted for in the Busselton Jetty Long Term Maintenance Plan) exceed the City’s income from above-mentioned income streams.

 

In 2019 BJI proposed an annual licence fee of $10,000 for the proposed Jetty Village licence, subject to annual CPI review/indexation. In support of this proposal BJI submitted that they intended to extend the operating hours of the UWO and Jetty train to support and add value to the Village Project, which should increase BJI’s revenue and, consequently, increase licence fees payable to the City under the existing Busselton Jetty Licence by an estimated $65,000 per year (and potentially $85,000 per year should they be able to operate a second train).

 

Financial projections provided by BJI for the Village Project (see attachment C) indicated that the following net surpluses were expected (note these numbers were adjusted to exclude “special items” such as contributions towards a “Special Purpose Fund” which was to assist in funding the future AUDC project):

 

·                2020/2021 - $34,926

·                2021/2022 - $53,691

·                2022/2023 - $64,928

·                2023/2024 - $77,169.

 

One of the State Government and the City’s main objectives with allowing commercial/income generating operations at the Busselton foreshore and the Busselton Jetty is to generate funds for the ongoing maintenance of the Busselton Jetty. As income from these sources is currently insufficient to cover the annual Jetty maintenance costs, it was recommended to Council as part of resolution (C1912/266) that on top of the Jetty Licence fee (percentage of gross revenue), a licence fee for the Village Project of approximately 50% (rounded down) of BJI’s projected net profit, would be fair and equitable.

 

 

 

 

Therefore Council endorsed (C1912/266) the following licence fee structure:

·        A fixed licence fee payable annually in arrears (i.e by 30 June of each year)

·        Licence fee for first four years:

             2020/2021 - $15,000

                 2021/2022 - $25,000

                 2022/2023 - $30,000

                 2023/2024 - $35,000

·        In the fifth year, that is the 2024/2025 financial year (and thereafter, on every fifth anniversary of the term) the licence fee will be reviewed and adjusted for the next 5 year period, based on a average of BJI’s actual net income from Village operations at the time.

 

The approach above aimed to strike a balance between the City’s expectation of relieving the burden on its ratepayers as far as jetty maintenance costs are concerned, and BJI’s objectives of generating additional funds for future ventures aimed at maximising use of the Busselton Jetty.

 

Since the 2019 proposal, BJI has updated their financial projections (see attachment D) which shows the following projected net surpluses:

 

·                2023/2023 - $57,119

·                2023/2024 - $58,833

·                2024/2025 – $61,834

·                2025/2026 – $64,925.

 

The business case (attachment A) assumes the licence fee remains the same as those agreed to in 2019 (that being $15k in year 1), and that ‘worst case’ scenario revenue forecast will result in an extra $284,234 per year in licence fee payments, through the Jetty Licence agreement, from operating extra UWO tours, submarine tours and additional walk tickets, train tickets etc.  Officers are yet to receive BJI’s overall financial projections to confirm this.  Further negotiation through the CEO is therefore required to finalise the licence fee amounts.

 

Both the City and BJI agree that it is important that this project does not impose additional impost on the ratepayer.  Additional costs that the City will need to make provision for, in terms of insurance and structural maintenance, are estimated to be around $188,780 per annum.  However until the City reviews the design and maintenance cost estimates this amount cannot be confirmed. 

 

Regardless, to cover this it is proposed the minimum licence fee payable by BJI, sitting at $826,541.34 in 2022/23, increases to cover these items and to assist in bridging the gap that is currently funded through municipal funds.

 

Stakeholder Consultation

To date BJI has taken a number of actions to inform, engage and consult with stakeholders in relation to the Village Project (including the public at large). These actions can be summarised as follows:

 

·        Simon McArthur & Associates - public consultation 2017

             In 2017, a detailed feasibility study was completed by Simon McArthur & Associates. The study considered a variety of potential uses for/at the Busselton Jetty and involved surveying more than 3,000 visitors to the Busselton foreshore and engaging a range of stakeholders for their views on what they consider to be optimal tourism products/offerings. More than 200 ideas were identified, with the “Village” concept featuring as one of the most feasible options, along with the Australian Underwater Discovery Centre project.

·        BJI Customer surveys 2015/16, 2016/17, 2017/18 and 2018/19

             Every year BJI distribute approximately 2,500 visitor surveys, requesting ‘open ended’ feedback. Over the past 4 years the majority of feedback focussed on the need for more ‘end of Jetty activities’ and included suggestions such as:

o      Longer stop at the end of the Jetty;

o      Café/ restaurant at the end;

o      Cool drinks at the end of the Jetty

o      Snorkelling at the end of the Jetty

o      Fish and chips available at the end of the Jetty

o      Shaded, sheltered seating at the end of the Jetty

o      More activities at the end of the Jetty

 

·        At BJI’s request the City published an article about the Village Project and provided a link to a survey in the City’s Bay-to Bay publication circulated 31 October 2019. BJI indicated that they received 327 responses of which more than 85% were in support.

 

·        Stakeholder engagement

             BJI has also indicated that, in addition to abovementioned public consultation, since 2018 they have consulted with a broad stakeholder/community base. This includes formal meetings with and presentations to BJI’s approximately 700 members, the City of Busselton, Heritage Council WA, State and Federal parliamentarians, regional, State and Federal tourism organisations/agencies, Minderoo Foundation and South West Development Commission.

 

In addition to the above, City staff have engaged with State Government agencies, in particular the Department of Planning Lands and Heritage in relation to the approvals required under the Management Order for Reserve 46715, and the Department of Transport.

 

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:

New Jetty Village infrastructure compromises structural integrity of Busselton Jetty

Risk Category

Risk Consequence

Likelihood of Consequence

Risk Level

Public Safety / Health

Catastophic

Rare

High

 

A structural assessment report will be commissioned by the City to a third party engineer who will certify the design to ensure it complies with the structural engineering requirements of the Busselton Jetty.  Should the final design not meet the engineering requirements, the City will not provide final approval of the project.

 

Options

As an alternative to the proposed Officer Recommendation the Council could:

·        Resolve not to approve the Village Project; or

·        Amend the proposed terms and conditions of the licence agreement.

 

For the reasons outlined in this report these options are not recommended.

 


CONCLUSION

The City considers the Village Project mutually beneficial to the State of WA, BJI, the City and the public at large. It is considered that the Village Project will facilitate regional tourism and should increase revenue from Busselton Jetty operations (which should contribute towards funding jetty maintenance costs). The Village Project is also expected to encourage higher visitation by the public at large to the Busselton Jetty. The proposed licence agreement is considered to be the most effective way of providing BJI an operating platform and formalising the legal arrangements and commitments between the City and BJI in relation to the Village Project.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Should Council resolve to adopt the officer recommendation the next steps for delivering the Village Project are as follows (note the timelines are indicative only as some of these actions are outside the City’s control):

·       City officers and BJI to finalise negotiations and draft a licence agreement based on the terms and conditions outlined in this report – May 2022

·       The City to submit the licence agreement for Ministerial approval under Section 18 of the LAA – May 2022

·       The City and BJI to execute the licence agreement upon receipt of Ministerial approval – May 2022

·       BJI to commence fabrication/ construction – June 2022

·       Indicative construction completion date – May 2023.

 


Council

321

11 May 2022

15.1

Attachment b

Village Project Concept Plans

 













Council                                                                                      333                                                                    11 May 2022

16.             Finance and Corporate Services Report

16.1           LEASING ARRANGEMENTS - GOOSE SITE LOT 432 FORESHORE PARADE

STRATEGIC THEME

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

STRATEGIC PRIORITY

2.5 Facilitate events and cultural experiences that provide social connection.

SUBJECT INDEX

Agreements/Contracts

BUSINESS UNIT

Corporate Services

REPORTING OFFICER

Senior Leasing and Property Officer - Ann Strang

AUTHORISING OFFICER

Manager Legal and Property Services - Ben Whitehill

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

 

OFFICER RECOMMENDATION

That the Council:

1.         Resolves to surrender the special lease (I126938) dated 11 February 1993 between the City of Busselton and the State of WA, subject to a new head lease being granted in accordance with recommendation 2 and the Minister of Lands consent to recommendation 3 and 4.

2.         Resolves to enter into a lease with the State of WA in relation to Lot 432, 15 Foreshore Parade, Busselton on the following terms and conditions:

(a)       Term of 50 years;

(b)       Rent commence at $1,000 plus GST per annum;

(c)       Permitted purpose: Tavern/Restaurant/Café and other incidental uses;

(d)       Such further terms and conditions as agreed upon pursuant to recommendation 5.

3.         Resolves to accept the surrender of the sublease (N202152) dated 3 January 2016 by Q & Z Group Pty Ltd (ACN 607 622 695) as trustee for the Qi & Eng Family Trust surrendering, subject to the Minister for Lands consent and a new Sublease being granted and entered into in accordance with recommendation 4.

4.         Resolves to enter into a sublease subject to the Minister for Lands consent, with Q & Z Group Pty Ltd (ACN 607 622 695) as trustee for the Qi & Eng Family Trust for the whole of Lot 432, 15 Foreshore Parade, Busselton on the following terms and conditions:

(a)       Term up to 49 years and 11 months;

(b)       Rent $50,546.02 exclusive of GST with a rent free period of up to 12 months;

(c)       rent to be reviewed annually on each anniversary in accordance with CPI, with market rent reviews to be undertaken every 5 years;

(d)       Permitted purpose:  Tavern/Restaurant/Café and other incidental uses;

(e)       Such further terms and conditions as agreed upon pursuant to recommendation 5.

5.         In respect to recommendations 2 and 4, delegates power and authority to the Chief Executive Officer to:

(a)       Negotiate and agree with the State of WA the further terms and conditions of the Head Lease as outlined in this report; and

(b)       Negotiate and agree with Q & Z Group Pty Ltd (ACN 607 622 695) as trustee for the Qi & Eng Family Trust the further terms and conditions of the sublease as outlined in this report.

6.         Resolves to advertise the proposed disposition of property in accordance with section 3.58 of the Local Government Act 1995 for the terms and conditions outlined in this report and, if there are no objections, authorise the CEO to enter into a sublease in accordance with recommendation 4.

7.         Endorse to waive $28,969.87 exclusive of GST from existing debt owed by Q & Z Group Pty Ltd (ACN 607 622 695) as trustee for the Qi & Eng Family Trust as rent relief for the period 1 April 2021 to 31 May 2022.

8.         Grants a discount of 50% rent relief to Q & Z Group Pty Ltd (ACN 607 622 695) as trustee for the Qi & Eng Family Trust as rent relief for the period 1 June 2022 to 30 October 2022.

9.         Grants Q & Z Group Pty Ltd (ACN 607 622 695) as trustee for the Qi & Eng Family Trust a rent free period commencing 1 November 2022 and expiring the earlier of (i) 30 October 2023 or (ii) the issue of Certificate of Completion. 

 

EXECUTIVE SUMMARY

Q & Z Group Pty Ltd (ACN 607 622 695), as trustee for the Qi & Eng Family Trust is the sublessee (Sublessee) and business owner of the Goose Beach Bar & Kitchen (the Goose), have submitted a request to the City seeking a longer lease term and rent relief following the loss of their building by fire last year.

 

In light of the investment required to rebuild the Goose and consistent with the City’s previous approach for new commercial developments, officers recommend that their request be supported.

 

To facilitate the request this report recommends that the existing special lease between the State of WA (State) and the City of Busselton (City) be surrendered and a new Head Lease entered into. The sublease between the City and the Sublessee will also need to be surrendered and a new sublease entered into. 

BACKGROUND

Lot 432, 15 Foreshore Parade (Lot 432) is owned by the State.  In 1993, a Special Lease was granted to the City for the described purpose of ‘Oceanarium, Museum and Restaurant’.  The Special Lease expires on 7 January 2043.  The Special Lease requires that revenue generated from the subleasing of Lot 432 be applied to the City’s Jetty Maintenance Reserve Account (Reserve Account).

 

In November 2002 a Development Application was submitted by Flumore Developments Pty Ltd (Flumore) for the construction of a restaurant on Lot 432.  On 9 April 2003, the Council resolved (C0304/171) to support the development subject to a sublease being entered into.  On 22 August 2003, the City entered into a sublease with Flumore.  The sublease was for a term of 39 years and 6 months expiring on 1 January 2043. 

 

In 2015, Flumore sold the business to the Sublessee.   Instead of assigning the sublease the Department of Lands requested that a new sublease be entered into.  The City entered into a sublease for Lot 432 with the Sublessee dated 14 December 2015 (Existing Sublease).  The Existing Sublease expires on 6 January 2043. Since 2016 the Sublessee has undertaken several upgrades to the building.

 

On 12 April 2021 the building was destroyed by a fire and was demolished soon after.  To retain a presence on the Foreshore the Sublessee obtained City approval for a temporary food van near their leased premises. 

 

A Development Application was submitted in July 2021 to rebuild the Goose at an estimated cost of $3m.  The City approved the Development Application in October 2021. After the approval was issued it was identified that additional fire suppression measures may have been required, delaying the development. The issue was ultimately resolved without requiring additional fire suppression measures.  The Sublessee has now sought tenders for the construction of the building and has advised officers that they intend to reopen in April 2023.

 

The Existing Sublease does not include an abatement of rent clause for situations where the building is damaged or destroyed and the City has continued to charge the Sublessee the ground rent for the premises since the fire.  The monthly rent is $4,212.17 ex GST.  All rent owing from the 2020/21 financial year has been paid. This financial year invoices have been raised to the sum of $41,606.38 ex GST. 

OFFICER COMMENT

The Sublessee has submitted a request to the City for an extension to the term of the Existing Sublease and has also requested rent relief from August 2021 until April 2023.  The value of the rent relief request is $83,728.08 exclusive of GST.

 

Extension of Existing Sublease

If Council were to support an extension in term, the Department of Planning, Lands and Heritage (DPLH) have advised that they are unable to extend the term of the Special Lease and that the previous arrangements would need to be surrendered and that a new head lease and sublease be entered into. DPLH have provided indicative support to entering into the new arrangements. 

 

In addition to obtaining the approval of DPLH a mortgage over a lease (N202153) is registered on the Certificate of Title, the mortgagee will need to approve the surrender of the Existing Sublease and the new Sublease being entered into by the Sublessee.

 

Entering into new arrangements would provide greater certainty for the Sublessee and would likely to increase the value of their business.  It would also be beneficial for the City because:

1.         under the terms of the Special Lease the State can apply an annual rent of up to 50% of the rental income received by the City under any sublease.  The new Head Lease does not include this clause alleviating any risk of this occurring;

2.         it will provide an opportunity to amend the permitted use from ‘Oceanarium, Museum and             Restaurant’ to ‘Tavern/Restaurant/Café and other incidental uses’, which is a more accurate             description of the current use; and

3.         it will guarantee tenure over the premises for 50 years from the date it is entered (compared   to the 21 years currently remaining). 

 

A summary of the key terms for the proposed new Head Lease and Sublease are provided below.

 


Head Lease

It is proposed that the City enter into a Head Lease with the State on the following terms and conditions:

·    Lease Area                         the whole of Lot 432

·    Term                                    50 years

·    Rent                                      $1,000.00 exclusive of GST (see note below)

·    Permitted purpose:        Tavern/Restaurant/Café and other incidental uses

·    Other terms and conditions to be consistent with the Head Leases for Lot 561 and Lot 555 Foreshore Parade, Busselton.

 

Note: the nominal rent will remain conditional upon the rent being paid into the Reserve Account for the maintenance of Busselton Jetty. If the Reserve Account is terminated the rent under the Head Lease would be adjusted based on market value. 

 

Sublease

It is proposed that the City enter into a new Sublease with the Sublessee on the following terms and conditions:

·        Sublease Area         the whole of Lot 432

·        Term                           49 years and 11 months

·        Rent                            $50,546.02 exclusive of GST, with up to a 12 month rent free period  

·        Rent Review             Reviewed annually by CPI, with market rent reviews every 5 years. 

·        Permitted Use         Tavern/Restaurant/Café and other incidental uses.

·        Rates & Outgoings Payable by the Sublessee

·        Insurance                  Effected and maintained by the Sublessee

 

It is also proposed that a condition for construction timeframes and a performance bond be applied.  The intent of the performance bond is to cover the cost of any demolition required should the Sublessee default on its obligations.

 

Request for rent relief

The Sublessee has requested rent relief until April 2023 as a result of the hardship suffered from the destruction of the premises. The estimated value of the rent relief sought is $83,728.08 ex GST. Officers understand that the Sublessee had business interruption insurance cover until October 2022, however have been advised that their insurable amount was not sufficient to cover all costs until reopening.

 

To cover the Sublessee during their insurable period, officers recommend that a 50% reduction in rent apply for the period April 2021 to October 2022. This equates to a concession of $39,500.30 exclusive of GST.  From 1 November 2022 it is proposed that a rent free period be granted until the earlier of 30 October 2023 (12 months) or the date of practical of completion, being a maximum relief of $50,546.04 exclusive of GST during that period.  Combined the maximum rent relief equates to $90,046.34 exclusive of GST. 

 

The basis for recommending rent relief is:

1.         it acknowledges the hardship suffered by the Sublessee;

2.         many other leases include an abatement of rent clause which offer periods of rent relief in the event of damage or destruction to the premises; and

3.         it is consistent with the City’s practice for new developments on the foreshore to offer rent free periods during construction.

Statutory Environment

Section 3.58(3) of the Local Government Act 1995 (LGA), states that before agreeing to dispose of property, the local government is required to:

(a)       give local public notice of the proposed disposition by:

    ­   describing the property concerned;

        ­  giving details of the proposed disposition (including names of the parties                                               concerned; the consideration to be received by the local government and the                      market value of the disposition - a market valuation was obtained on 2 February                        2022 indicating that the market value for the rent was $50,546.02 exclusive of GST); 

    ­   inviting submissions to be made to the local government before a date to be specified in the notice, being a date not less than 2 weeks after the notice is first         given

(b)       consider any submissions made to it before the date specified in the notice and, if its decision is made by the council or a committee, the decision and the reasons for it are recorded in the minutes of the meeting at which the decision was made.

 

The Commercial Tenancy (Retail Shops) Agreements Act 1985 (CTA) regulates commercial tenancy agreements relating to certain shops.  The CTA applies to the Sublease.   The CTA regulates some of the provisions which may be contained in the lease including rent reviews, trading hours and operation expenses.

 

Section 6.12 of the LGA states that a local government may waive or grant concessions in relation to any amount of money; or write off any amount of money which is owed to the local government.

 

Relevant Plans and Policies

In the Busselton Foreshore Structure Plan (BFSP) the Goose site is located within the Busselton Jetty Precinct.   In March 2021, the Council adopted (C2103/043) an amendment to the BFSP.  The proposal to change the permitted use in the Sublease to tavern/restaurant is consistent with the BFSP and its current use.

 

Financial Implications

The annual revenue from the Sublease is factored into the Long Term Financial plan (LTFP).  The annual rent is directed from the Reserve Account towards maintenance costs associated with the Busselton Jetty and, to the extent that the Minister for Lands agrees, towards foreshore maintenance, preservation and improvement. 

 

The proposal to waive $28,969.87 from the outstanding debt and reducing the rent by 50% for the remainder of this financial year will reduce the income budgeted for this year.  The proposed 50% reduced rent for the period July 2022 to October 2022 and the rent free period will be reflected in future budgets.  The rent relief proposed will have an impact on the LTFP. It will be in deficit approximately $33,000 this financial year, $44,000 in year 2022/23 and $13,000 in the year 2023/24.

 

If a new Head Lease is entered into the City will be required to pay rent to the State.  This is currently $1,000.00 per annum for the Equinox, Hotel Site and Microbrewery Head Lease.  It is anticipated that this amount will be the same for Lot 432. 

 

All amounts are exclusive of GST.

 


Stakeholder Consultation

The City has sought feedback from the DPLH about whether they would support an extended lease term.  DPLH have advised that they would consider the surrender of the existing Special Lease and entering into a Head Lease and approve a Sublease for a term not exceeding 50 years.

 

Risk Assessment

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

 

Options

As an alternative to the proposed recommendation the Council could:

1.    resolve not to surrender the existing Special Lease and Sublease and continue with the existing agreements;

2.    propose alternative arrangements for rent relief.   

CONCLUSION

For the reasons set out in this report it is recommended that the Special Lease be surrendered conditional upon the Existing Sublease being surrendered and a new Head Lease and Sublease being entered into on the terms outlined in this report.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Subject to final approval being sought from DPLH and there being no submissions in response to the local public notice given under section 3.58 of the LGA, then the necessary documentation to implement the Officer Recommendation will be prepared and executed as soon as practical. 

 

 


Council                                                                                      338                                                                    11 May 2022

17.             Chief Executive Officers Report

17.1           COUNCILLORS' INFORMATION BULLETIN

STRATEGIC THEME

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

STRATEGIC PRIORITY

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

SUBJECT INDEX

Councillors' Information Bulletin

BUSINESS UNIT

Executive Services

REPORTING OFFICER

Reporting Officers - Various

AUTHORISING OFFICER

Chief Executive Officer - Mike Archer

NATURE OF DECISION

Noting: The item is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   State Administrative Tribunal Reviews

Attachment b    Letter from the Office of the Hon Amber-Jade Sanderson MLA Minister for Health to the City  

 

OFFICER RECOMMENDATION

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

17.1.1       State Administrative Tribunal Reviews

17.1.2      Letter from the Office of the Hon Amber-Jade Sanderson, MLA Minister for Health

 

EXECUTIVE SUMMARY

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

 

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

INFORMATION BULLETIN

17.1.1       State Administrative Tribunal Reviews

 

The current State Administrative Tribunal Reviews is at Attachment A.

17.1.2       Letter from the Office of the Hon Amber-Jade Sanderson, MLA Minister for Health

 

This letter is from the Office of the Hon Amber-Jade Sanderson MLA, Minister for Health in reply to the City’s letter dated 11 March 2022 regarding the mandatory vaccination concerns raised at the Special Electors Meeting on 21 February 2022.

 

The letter is included as Attachment B.

 


Council

340

11 May 2022

17.1

Attachment a

State Administrative Tribunal Reviews

 



Council

341

11 May 2022

17.1

Attachment b

Letter from the Office of the Hon Amber-Jade Sanderson MLA Minister for Health to the City

 

 


Council                                                                                      342                                                                    11 May 2022

18.             Motions of which Previous Notice has been Given

Nil

 

19.             urgent business

 

 

20.             Confidential Matters

Nil

 

21.             Closure