Agenda of Council - Wednesday, 25 May 2022

Council 8 25 May 2022

12.1 Finance Committee - 11/5/2022 - LIST OF PAYMENTS MADE - MARCH 2022

STRATEGIC THEME	LEADERSHIP - A Council that connects with the community and is accountable in its decision making.
STRATEGIC PRIORITY	4.2 Deliver governance systems that facilitate open, ethical and transparent decision making.
SUBJECT INDEX	Financial Operations
BUSINESS UNIT	Financial Services
REPORTING OFFICER	Manager Financial Services - Paul Sheridan
AUTHORISING OFFICER	Director Finance and Corporate Services - Tony Nottle
NATURE OF DECISION	Noting: The item is simply for information purposes and noting
VOTING REQUIREMENT	Simple Majority
ATTACHMENTS	Attachment a List of Payments - March 2022 ⇩

This item was considered by the Finance Committee at its meeting on 11/5/2022, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council notes payment of voucher numbers for the month of March 2022 as follows:

CHEQUE PAYMENTS	CHEQUE # 119178 - 119219	135,717.24
ELECTRONIC TRANSFER PAYMENTS	EFT # 85799 - 85836 and 85840 - 86434	9,044,895.36
TRUST ACCOUNT	CHEQUE # 7585 -7588 and EFT # 85837 - 85839	46,082.12
PAYROLL PAYMENTS	01.03.22 - 31.03.22	1,601,949.92
INTERNAL PAYMENT VOUCHERS	DD004793- DD004832	167,966.01
TOTAL PAYMENTS		10,996,610.65

OFFICER RECOMMENDATION

That the Council notes payment of voucher numbers for the month of March 2022 as follows:

CHEQUE PAYMENTS	CHEQUE # 119178 - 119219	135,717.24
ELECTRONIC TRANSFER PAYMENTS	EFT # 85799 - 85836 and 85840 - 86434	9,044,895.36
TRUST ACCOUNT	CHEQUE # 7585 -7588 and EFT # 85837 - 85839	46,082.12
PAYROLL PAYMENTS	01.03.22 - 31.03.22	1,601,949.92
INTERNAL PAYMENT VOUCHERS	DD004793- DD004832	167,966.01
TOTAL PAYMENTS		10,996,610.65

EXECUTIVE SUMMARY

This report provides details of payments made from the City’s bank accounts for the month of March 2022, for noting by the Council and recording in the Council Minutes.

Council 22 25 May 2022

12.2 Finance Committee - 11/5/2022 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 MARCH 2022

STRATEGIC THEME	LEADERSHIP - A Council that connects with the community and is accountable in its decision making.
STRATEGIC PRIORITY	4.2 Deliver governance systems that facilitate open, ethical and transparent decision making.
SUBJECT INDEX	Financial Services
BUSINESS UNIT
REPORTING OFFICER	Manager Financial Services - Paul Sheridan
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 Loan Schedule - March 2022 ⇩ Attachment b Investment Report - March 2022 ⇩ Attachment c Financial Activity Statement - March 2022 ⇩

This item was considered by the Finance Committee at its meeting on 11/5/2022, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 31 March 2022, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations 1996.

OFFICER RECOMMENDATION

EXECUTIVE SUMMARY

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

This report has been compiled to fulfil the statutory reporting requirements of the Act and associated Regulations, whilst also providing the Council with an overview of the City’s financial performance on a year to date basis, for the period ending 31 March 2022.

BACKGROUND

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

· Annual budget estimates

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

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

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

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

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

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

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

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

OFFICER COMMENT

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

Statement of Financial Activity

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

Net Current Position

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

Capital Acquisition Report

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

· Land and Buildings

· Plant and Equipment

· Furniture and Equipment

· Infrastructure

Reserve Movements Report

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

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

Comments on Financial Activity to 31 March 2022

The Statement of Financial Activity (FAS) for the year to date (YTD) shows an overall Net Current Position of $10.5M as opposed to the budget of ($6M). This represents a positive variance of $16.5M YTD.

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

Description	2021/22 Actual YTD $	2021/22 Amended Budget YTD $	2021/22 Amended Budget $	2021/22 YTD Bud Variance %	2021/22 YTD Bud Variance $	Change in Variance Current Month $
Revenue from Ordinary Activities				*1.56%*	*1,157,703*	*225,812*
1. Other Revenue	573,789	244,465	414,950	134.71%	329,324	49,926
2. Interest Earnings	588,789	533,897	609,250	10.28%	54,892	17,997
Expenses from Ordinary Activities				*10.98%*	*7,306,488*	*3,211,218*
3. Other Expenditure	(2,283,600)	(7,561,269)	(9,685,100)	69.80%	5,277,669	3,323,969
4. Non-Operating Grants, Subsidies and Contributions	3,545,044	12,036,912	34,850,687	(70.55%)	(8,491,868)	(684,823)
Capital Revenue & (Expenditure)				*28.08%*	*12,952,884*	*1,921,070*
5. Land & Buildings	(2,527,103)	(16,577,224)	(22,802,632)	84.76%	14,050,121	1,360,178
Plant & Equipment	(848,413)	(2,230,000)	(2,890,000)	61.95%	1,381,587	192,103
Furniture & Equipment	(327,684)	(562,541)	(828,800)	41.75%	234,857	(133,567)
Infrastructure	(14,106,305)	(26,585,758)	(38,537,750)	46.94%	12,479,453	2,370,410
6. Proceeds from Sale of Assets	28,839	674,078	776,071	(95.72%)	(645,239)	(39,800)
7. Proceeds from New Loans	11,325,000	15,450,000	25,450,000	(26.70%)	(4,125,000)	1,250,000
8. Self Supporting Loans - Repayment of Principal	44,938	146,069	267,033	(69.24%)	(101,131)	(101,132)
9. Total Loan Repayments – Principal	(2,285,208)	(2,625,919)	(3,839,418)	12.97%	340,711	107,638
10. Advances to Community Groups	(1,325,000)	(5,450,000)	(5,450,000)	75.69%	4,125,000	(1,250,000)
11. Transfer to Restricted Assets	(21,580,611)	(11,600)	(10,021,740)	(185939.75%)	(21,569,011)	(1,896,506)
12. Transfer from Restricted Assets	6,856,622	0	1,735,682	100.00%	6,856,622	1,658,942

Revenue from Ordinary Activities

In total, revenue from Ordinary Activities is very close to budget at only 1.56% ahead YTD. There are however material variance items contained within this category, on the face of the Financial Activity Statement, that require comment.

1. Other Revenue

Ahead of YTD budget by $329K, or 134.7%, mainly due to the items listed in the table below:

Revenue Code	Revenue Code Description	Actual YTD $	Amended Budget YTD $	Variance YTD $	Variance YTD %	Change in Variance Current Month $
*Finance & Corporate Services*		*53,945*	*47,927*	*6,018*	*12.56%*	*(109)*
10360	Customer Services – Sale of Number Plates	9,818	3,150	6,668	211.69%	(630)
This financial year there has been a spike in people wishing to acquire personalised plates.
*Planning and Development Services*		*121,100*	*94,478*	*26,622*	*28.18%*	*38,710*
10942	Bushfire Risk Management Planning – DFES – Sundry Income	37,861	-	37,861	(100.00%)	37,861
This is the DFES contribution to the shared bushfire risk mitigation coordinator position - as per bushfire risk management planning program grant agreement May 2021.
10950, 10960, 10970	Animal, Litter & Parking Control – Fines & Prosecutions	40,774	58,530	(17,756)	(30.34%)	(5,076)
Result impacted by improved public compliance coupled with a shift in focus away from prosecution toward education.
*Engineering and Works Services*		*396,866*	*98,158*	*298,708*	*304.31%*	*12,252*
11107	Engineering Services Design – LSL Contribution from Other LGA	10,897	-	10,897	(100.00%)	10,897
At the time of Budget development a staff member had not planned to take LSL, which has since changed. We have now received the contribution of the previous employer.
12642	NCC Standpipe – Sale of Water	25,396	9,073	16,323	179.90%	-
Sales are based on meter readings for water taken from the standpipe. Over summer there was considerably more volume taken than was originally budgeted.
G0030 & G0031	Busselton & Dunsborough Transfer Station – Sale of Scrap Materials	358,942	89,085	269,857	302.92%	1,355
Prices received for scrap metal have been favourable affecting the positive result. Due to the more favourable prices, a higher volume of scrap metal was sold from stockpiles.

2. Interest Earnings

Ahead of YTD budget by $54.9K, or 10.28%, due to a slight increase in interest rates being offered on investments over the last few months.

Expenses from Ordinary Activities

Expenditure from ordinary activities is $7.3M, or 10.98%, less than expected when compared to the budget YTD as at March. The expense line items on the face of the financial statement that have a YTD variance that meet the material reporting threshold are outlined below.

3. Other Expenditure

$5.3M, or 69.8%, under the budget YTD. The main contributing items are listed below:

Cost Code	Cost Code Description	Actual YTD $	Amended Budget YTD $	Variance YTD $	Variance YTD %	Change in Variance Current Month $
*Executive Services*		*89,813*	*62,253*	*(27,560)*	*(44.3%)*	*(7,904)*
10001	Office of the CEO	41,995	62,253	20,258	32.5%	(1,395)
The underspend relates to the inter-council initiatives budget line item, which has not been spent to date.
10011	Emergency Contingency Costs (Other)	47,818	-	(47,818)	(100.0%)	(6,509)
There is no budget for this particular area, as it is used purely to capture specific unforeseen emergency related costs. YTD actuals represent the costs associated with the forgone rental opportunities at the YCAB, whilst it is being used as a COVID vaccination clinic i.e. effectively tracking this part of the City’s contribution to the vaccination effort. This a non-cash “book entry”, with an offsetting revenue amount shown in Venue Hire income for the YCAB facility.
*Finance and Corporate Services*		*874,464*	*839,127*	*(35,337)*	*(4.2%)*	*8,758*
10000	Members of Council	479,495	544,310	64,815	11.9%	3,411
Timing related variances with underspends in primarily member allowances and sitting fees ($35k), plus underspends in reimbursements and training expenses due to change of council members.
10151	Rates Administration	31,296	45,819	14,523	31.7%	2,465
The budget is for rating valuations in relation to the interim rating of new properties. It was set as an even monthly spread, as historically these activities are random (e.g. dependant on building completions), and can’t be predicted. As such, there will always be timing variances.
10200	Financial Services	45,029	-	(45,029)	(100.0%)	-
The budget for the 5 yearly valuation of the City’s Land & Buildings was removed, as at the time of developing the budget it was believed that a qualified in-house valuer would be able to conduct this service.
10221, 10227, 10228, 10229 & 10230	Finance & Borrowing Programs 4, 11, 12, 13 & 14	197,054	103,082	(93,972)	(91.2%)	-
The Government Guarantee levy on the City’s loans as collected by the WA Treasury Corp payable for the period 1 January to 30 June 2021 was levied in July 2021. This invoice should have been posted to June via an accrual, however it was not completed and instead included in July’s expenses. Accordingly there will be three payments included in 2021/2022’s reports.
10511	Community Assistance Program (Governance)	-	16,666	16,666	100.0%	-
Funds for the You Choose Program yet to be allocated. The full year budget of $100K will be allocated in May / June.
*Community and Commercial Services*		*1,042,318*	*6,419,239*	*5,376,921*	*83.8%*	*3,344,968*
10532	BPACC Operations	2,860	37,500	34,640	92.4%	12,500
BPACC operational activity will not commence until 2023.
10536	School Chaplaincy	-	41,400	41,400	100.0%	-
This is the annual grant to Youthcare which is paid on invoice. An invoice for the full amount is expected before the end of financial year.
10543	Community Development	97,634	176,318	78,684	44.6%	34,435
This relates to the first three rounds of Community Assistance Program. Round 1 and 2 approvals were combined due to Council elections and round 3 closed on 30 November. From the first 3 rounds $133,873 is committed with actual expenditure to be seen in first quarter of 2022. Round 4 has now closed and applications are being assessed. Timing is largely dependent on CAP Applications received from community groups.
10558	Events	557,155	969,448	412,293	42.5%	25,729
The YTD underspend to budget can be explained as follows: · To date there have been 8 budgeted events cancelled due to COVID, totaling approximately $71K; · There have been 5 events that have occurred for which the City has yet to be invoiced for their contribution, totaling $57.5K; · 6 events have had partial payments, however a total of $91.5K remains due to milestones not yet met; · A further $192K was forecast to have been incurred by YTD March ($110K for Winter Wonderland, and approximately $72K in general unallocated funds).
10630	Economic and Business Development Administration	126,600	140,637	14,037	10.0%	44,917
This is due to a number of underspends including allocations towards cruise ship visitor servicing, advertising and valuation expenses.
10634	Business Support Program	-	23,850	23,850	100.0%	-
Final acquittals of the support program yet to be received. This budget was carried over from the 20/21 financial year, funded from the MERG Reserve, however it has now been ascertained that only approximately $10,000 will be required. This will more than likely be the positive variance by the end of the year, offset by a lower transfer from the reserve.
11151	Airport Operations	1,978	1,729,584	1,727,606	99.9%	195,690
Marketing activities continue to be delayed due to the postponement of Jetstar RPT services as a result of COVID restrictions etc.
11160	Busselton Jetty	-	3,000,000	3,000,000	100.0%	3,000,000
The budget YTD represents the City’s contribution to the AUDC project, which has been deferred. This was to funded from the Jetty Reserve, so it will remain in the reserve at year end.
11156	Airport Development Operations	115,139	148,550	33,411	22.5%	-
At the time of setting the budget the timing for the final carried over payments related to a noise mitigation project were not known. $148K was estimated to be remaining in total, split over three payments, however we have not received practical completion on the works, and there are still some outstanding works in progress.
*Planning and Development Services*		*100,371*	*85,463*	*(14,908)*	*(17.4%)*	*(29,473)*
10805	Planning Administration	-	15,000	15,000	100.0%	-
This budget item relates to the Façade Refurbishment Program which the City normally runs on an annual basis. Due to staff shortages and other priorities this year, it’s not likely that the full year budget of $30K will get spent at all.
10942	Bushfire Risk Management Planning – DFES	27,145	-	(27,145)	(100.0%)	(27,145)
This unbudgeted spend represents the return of unspent grant funds to DFES for the 20/21 BRP program.
*Engineering and Works Services*		*176,634*	*155,187*	*(21,447)*	*(13.8%)*	*7,620*
10830	Environmental Management Administration	16,037	937	(15,100)	(1611.5%)	143
Biodiversity Incentive Rate Rebate costs per allocated and paid in January, however the budget of $17,650 is allocated to June. Variance will rectify at year end.

B1223	Micro Brewery - Public Ablution	-	60,000	60,000	100.0%	-
The full contribution of $120K to the ablutions, in two instalments, was made in the 20/21 financial year, however due to the lateness of the second $60K instalment, it was inadvertently included again in the 21/22 year budget unnecessarily.
G0042	BTS External Restoration Works	118,176	50,000	(68,176)	(136.4%)	8,636
Rendezvous Road Refuse site remedial works.

4. Non-Operating Grants, Subsidies & Contributions

The negative variance of $8.5M is mainly due to the items in the table below. It should be noted that any negative variance in this area will approximately correlate to an offsetting positive underspend variance in a capital project tied to these funding sources. This can be seen in the section below that outlines the capital expenditure variances. Where this is not the case, the reconciliation of the projects and the required funding to be recognised in revenue is not completed until closer to year end.

Revenue Code	Revenue Code Description	Actual YTD $	Amended Budget YTD $	Variance YTD $	Variance YTD %	Change in Variance Current Month $
*Community and Commercial Services*		-	*164,351*	*(164,351)*	*(100.0%)*	*(48,975)*
10540	Recreation Administration	-	76,875	(76,875)	(100.0%)	(25,625)
10590	Naturaliste Community Centre	-	70,050	(70,050)	(100.0%)	(23,350)
C6010	Airport Fencing Works	-	17,426	(17,426)	(100.0%)	-
*Engineering and Works Services*		*3,066,082*	*11,807,561*	*(8,741,479)*	*(74.0%)*	*(635,848)*
A0014	Bussell Highway Bridge – 0241 – Federal Capital Grant	-	744,000	(744,000)	(100.0%)	-
A0022	Yallingup Beach Road Bridge - 3347 – Federal Capital Grant	-	700,000	(700,000)	(100.0%)	-
A0023	Kaloorup Road Bridge – 3381 – Federal Capital Grant	-	234,000	(234,000)	(100.0%)	(234,000)
A0024	Boallia Road Bridge – 4854 – Federal Capital Grant	-	143,750	(143,750)	(100.0%)	(143,750)
A0025	Tuart Drive Bridge 0238 – Developer Cont. Utilised	-	667,583	(667,583)	(100.0%)	(667,583)
B9407	Busselton Senior Citizens – Developer Cont. Utilised	-	111,750	(111,750)	(100.0%)	-
B9591	Performing Arts Convention Centre – Federal Capital Grant	-	4,554,000	(4,554,000)	(100.0%)	-
B9612	Churchill Park Renew Sports Lights – State Capital Grant	-	72,850	(72,850)	(100.0%)	-
C3116	Dawson Park (Mcintyre St Pos) – Developer Cont. Utilised	71,116	-	71,116	100.0%	-
C3211	Tulloh St (Geographe Bay Road) - POS Upgrade – Developer Cont. Utilised	25,043	-	25,043	100.0%	-
C3214	Kingsford Road - POS Upgrade – Developer Cont. Utilised	71,437	-	71,437	100.0%	-
C3215	Monash Way - POS Upgrade – Developer Cont. Utilised	71,939	-	71,939	100.0%	-
C3216	Wagon Road - POS Upgrade – Developer Cont. Utilised	81,341	-	81,341	100.0%	-
C3217	Limestone Quarry - POS Upgrade – Developer Cont. Utilised	119,687	-	119,687	100.0%	-
C3218	Dolphin Road - POS Upgrade – Developer Cont. Utilised	90,634	-	90,634	100.0%	-
C3219	Kingfish/ Costello - POS Upgrade – Developer Cont. Utilised	33,551	-	33,551	100.0%	-
C3220	Quindalup Old Tennis Courts Site - POS Upgrade – Developer Cont. Utilised	34,480	-	34,480	100.0%	-
C3225	Dunsborough Lakes Sporting Precinct (Stage 1) – Developer Cont. Utilised	944,234	-	944,234	100.0%	944,234
C3243	Vasse River - Ongoing Restoration of River Habitat – State Capital Grant	-	90,000	(90,000)	(100.0%)	-
F0084	Thompson Way - New Path - Contributions	36,818	-	36,818	100.0%	-
F0112	Causeway Road Shared Path – State Capital Grant	-	80,000	(80,000)	(100.0%)	-
S0048	Bussell Highway – Developer Cont. Utilised	-	200,000	(200,000)	(100.0%)	-
S0076	Kaloorup Road (Stage 1) – Main Roads Direct Grant	-	224,400	(224,400)	(100.0%)	-
S0077	Ludlow-Hithergreen Stage 2 Reconstruct & Widen – MR Capital Grant	-	96,000	(96,000)	(100.0%)	-
S0078	Sugarloaf Road – State Capital Grant	-	643,198	(643,198)	(100.0%)	(321,599)
S0321	Yoongarillup Road - Second Coat Seal – MR Capital Grant	-	100,000	(100,000)	(100.0%)	-
S0331	Barracks Drive Spray Seal – MR Capital Grant	-	130,980	(130,980)	(100.0%)	-
S0332	Inlet Drive Spray Seal – MR Capital Grant	-	47,000	(47,000)	(100.0%)	-
S0333	Chapman Crescent Spray Seal – MR Capital Grant	-	78,000	(78,000)	(100.0%)	-
S0334	Chapman Hill Road – MR Capital Grant	-	1,122,000	(1,122,000)	(100.0%)	(374,000)
S0335	Kaloorup Road – MR Capital Grant	-	361,425	(361,425)	(100.0%)	(120,475)
S0336	Wildwood Road – MR Capital Grant	750,200	1,406,625	(656,425)	(46.7%)	281,325

5. Capital Expenditure

As at YTD March, there is an underspend variance of 61.2%, or $28.1M, in total capital expenditure, with YTD actual at $17.8M against the YTD budget of $46M. A large portion of this positive underspend variance is offset by the negative variance in Non-Operating Grants, Contributions & Subsidies discussed above, with the remainder offset by the negative variances in Transfers From Reserves and Restricted Assets related to funds held aside for these projects. The attachments to this report include detailed listings of all capital expenditure (project) items, however the main areas of YTD variance are summarised as follows:

Cost Code	Cost Code Description	Actual YTD $	Amended Budget YTD $	Variance YTD $	Variance YTD %	Change in Variance Current Month $
*Land*		*2,599*	*37,503*	*34,904*	*93.1%*	*4,167*
10610	Property Services Administration	2,599	37,503	34,904	93.1%	4,167
This is a contingency fund for costs associated with land acquisition or disposal under the LTFP, such as advertising costs in relation to the proposed disposition of freehold land holdings at Ambergate.
*Buildings*		*2,524,505*	*16,539,721*	*14,015,216*	*84.7%*	*1,356,011*
B9614	Dunsborough Lakes Sporting Precinct-Pavilion /Changeroom Facilities	12,272	687,501	675,229	98.2%	203,267
There has been minimal expenditure to date as works have not yet commenced. The design is currently under review to achieve budget alignment in consultation with user groups.
B9012	Civic and Administration Building Replacement of Cladding	121,889	100,000	(21,889)	(21.9%)	7,482
Cladding replacement commenced in January and was completed toward the end of February. Associated billing from the supplier is expected to be completed by the end of April, totalling approximately $430K, which will be less than the forecast of $500K.
Various	Busselton Performing Arts Convention Centre	1,747,955	13,892,593	12,144,638	87.4%	978,599
The contract for construction was awarded to Broad Constructions in late January. Broad took full site possession at the end of January and have commenced investigative works. Unspent budget at June 30 will be carried over into the following financial year.
B9300/1/2	Aged Housing Capital Improvements	38,148	182,250	144,102	79.1%	35,652
Budgeted works were proposed to separate the power and drainage that service Winderlup Court and Winderlup Villas. Western Power have now confirmed that separation of power is not required. As there are other works required to these units the proposal is a capex spend of circa $28,000 for bathroom upgrades and reflux valves and a possible further $70,000 for replacement carports.

B9596	GLC Building Improvements	87,464	213,852	126,388	59.1%	61,936
Proposed project for stadium ventilation has been put on hold, pending a review of capital projects. Storage upgrade has commenced.
B9605	Energy Efficiency Initiatives (Various Buildings)	116,897	164,240	47,343	28.8%	225
Works planned for commencement have encountered delays pending Western Power applications and approvals. Works programmed to be completed by the end of the financial year.
B9610	Old Butter Factory	17,991	6,000	(11,991)	(199.8%)	-
The YTD overspend is due the retention monies owing to the contractor on final completion of project. These were not factored in at the time of developing the budget.
B9611	Smiths Beach New Public Toilet	-	250,000	250,000	100.0%	-
Notification has been received by the entity that currently supplies the water that they are no longer able to supply water for City toilets. As such an MOU is being reviewed by the property team to establish viability of infrastructure works and costs for water supply. A clearing permit application is also underway, however all other activity on the project has been put on hold until these issues are resolved.
B9612	Churchill Park Renew Sports Lights	75,617	212,850	137,233	64.5%	(2,056)
RFQ for installation of lights was awarded with works commenced in March 2022. Supplier billing will follow completion of the works.
B9615	Naturaliste Community Centre AMP	641	72,000	71,359	99.1%	14,400
Delays due to contractor availability, these works will be re listed into next financial year.
B9616	Buildings Asset Management Plan High Use Allocation	92,319	120,000	27,681	23.1%	18,094
This budget will be fully expended come June 30. The budget is used for various maintenance activities on numerous buildings across the City.
B9617	Buildings AMP Renewal Allocation - Meelup Ablution	7,389	160,000	152,611	95.4%	40,000
During Budget planning these works were anticipated to be spread evenly over 5 months. Due to unforeseen design complexities the works were not able to start on time. These issues have been resolved and this project will be delivered in this financial year.
B9622	Dunsborough Youth Centre Building Construction	15,740	-	(15,740)	(100.0%)	-
The timing for works and initial procurement of a transportable building was not accurately known at the time of setting the original total budget of $80K.
B9717	Airport Construction - Existing Terminal Upgrade	-	46,485	46,485	100.0%	-
Invoicing in relation to the retention monies owing to Pindan (in receivership), for works completed has not yet been received. There is also a budget amount for unforeseen works required to enable RPT services, however this has not as yet been utilised.
B9720	BMRA Hangars	-	210,000	210,000	100.0%	-
This is a timing issue - the RFT process closed in January, however negotiations with tenderers are still ongoing. It is hoped that the tender will be awarded in April.

B9808	Busselton Jetty Tourist Park Upgrade	4,314	25,000	20,686	82.7%	-
Timing Issue - capital works upgrades that cannot be done until after Easter (the tourist season).
*Plant & Equipment*		*848,413*	*2,230,000*	*1,381,587*	*62.0%*	*192,103*
10250	Information & Communication Technology Services	-	40,000	40,000	100.0%	-
Vehicle due to be delivered April.
10372	Dunsborough Cemetery	-	20,000	20,000	100.0%	-
The budget is for maintenance trailers for the cemetery, both for grave shoring equipment and watering equipment. The delay in procurement of these items is due to current material and supply related issues.
10540	Recreation Administration	-	40,000	40,000	100.0%	-
The budget relates to a vehicle for the recently created Manager position. Vehicle has been ordered, delivery due in April.
10610	Property Services Administration	-	35,000	35,000	100.0%	-
Vehicle has been ordered, delivery due in April.
10630	Economic and Business Development Administration	-	75,000	75,000	100.0%	-
The budget relates to the replacement of two vehicles. One vehicle due to be delivered in June. Second vehicle yet to be ordered.
10810	Statutory Planning	-	35,000	35,000	100.0%	-
Vehicle has been ordered, delivery due in April.
10920	Environmental Health Services Administration	-	40,000	40,000	100.0%	-
Vehicle will be ordered when new officer appointed.
10950	Animal Control	-	50,000	50,000	100.0%	-
Ute for rangers to be ordered in April.
11001	Engineering Services Administration	-	35,000	35,000	100.0%	-
Vehicle due in November.
11107	Engineering Services Design	69,015	140,000	70,986	50.7%	-
Survey equipment incorrectly budgeted here, but actual cost has been allocated under Furniture & Office Equipment. 2 x cars delivered. Survey ute to be ordered in April.
11151	Airport Operations	-	15,000	15,000	100.0%	-
Slasher (tractor mounted) not yet ordered.
11202	Building Facilities - Weather Station Installations	10,280	-	(10,280)	(100.0%)	-
The actual weather stations were procured earlier than expected, and will be installed in April.
11401	Depot Workshop	-	10,000	10,000	100.0%	-
The budget is for a replacement hydraulic press. Specification requirements are being reviewed in light of supply chain issues.

11402	Plant Purchases (P10)	420,639	446,000	25,361	5.7%	-
Waste truck P166019 to be sent to auction end of April. Bin cleaning trailer expected to be built November. DWF site ute to be held and not replaced at this time.
11403	Plant Purchases (P11)	130,486	544,000	413,514	76.0%	180,000
An RFQ for 3 x light trucks is in progress. Irrigation ute and Parks maintenance ute not yet ordered, waiting feedback on requirements from P&Gs team.
11404	Plant Purchases (P12)	88,453	515,000	426,547	82.8%	-
Specification development is in progress for 2 x light trucks and RFQ is in progress for a new grader.
11407	P&E - P&G Smart Technologies	-	25,000	25,000	100.0%	25,000
This budget was to be used for investment in smart technologies to manage / address drying climate, however plans have not yet been developed for its use. Funds will remain in reserve if not spent for this purpose by year end.
11500	Operations Services Administration	-	40,000	40,000	100.0%	-
Vehicle ordered, delivery expected in April.
G0013	Domestic Organics Collections (FOGO)	12,897	-	(12,897)	(100.0%)	-
At the time of setting the budget of $75K for investigative works and FOGO trials, it was unknown what sort of activities would be undertaken. As such, the full year budget of $75K has been allocated to an operational contractors line, where in fact we needed to purchase some monitoring equipment to affix to the trucks. There should be an underspend against budget in the contractor line that will offset this spend against a nil budget.
*Furniture & Office Equipment*		*327,684*	*562,541*	*234,857*	*41.7%*	*(133,567)*
10250	Information & Communication Technology Services	163,250	220,891	57,641	26.1%	(65,467)
Underspend is due to not yet ordering ICT asset replacement items. This is due to be ordered in the coming months though actual delivery may not occur for some time due to global supply chain issues.
10558	Events	-	200,000	200,000	100.0%	-
The budget YTD represents the carry-over from the 20/21 year for the electronic billboard. The tender closed with three responses over the forecast budget. The tender was not awarded and it was agreed at the November MERG meeting to restructure the tender with options. A new tender has been issued which closes on 14 April 2022.
10590	Naturaliste Community Centre	16,326	51,650	35,324	68.4%	8,350
The budget represents a carry-over from 20/21 for the purchase of replacement fitness equipment. Order for fitness equipment was placed in February, however delivery is not expected until April/May due to supply issues. Fencing purchase of $8k was moved out to infrastructure, increasing the variance further.
11107	Engineering Services Design	73,211	-	(73,211)	(100.0%)	(73,211)
Survey equipment that was incorrectly budgeted for under Plant & Equipment.
B1350	Churchill Park- Other Buildings	-	26,450	26,450	100.0%	-
The budget relates to the storage facility project. Discussions are still progressing with the Stakeholders, delaying construction until a later date.
B1450	Depot Building-Busselton	17,776	-	(17,776)	(100.0%)	-
Expenditure was for 8 sit-to-stand workstations at the depot administration building. There is no budget in this particular line, however it is offset by considerable savings in other areas.

*Infrastructure*		*14,106,305*	*26,585,758*	*12,479,453*	*46.9%*	*2,370,410*
Various	Roads	5,592,539	8,506,528	2,913,989	34.3%	711,200
Many road construction projects are now well underway. Impacting this increasing variance through to June will be the outcome from discussions with Council in September/October 2021 where it was decided that the current capital works program would be spread over 18 months extending into the 2022/23 financial year. To this end, some projects that were to be budgeted this financial year have been put on hold given the state of the economy, availability of contractors and increased costs. • 46% of the YTD variance valued at $1.351m is associated with the two remaining Regional Road Safety Program projects that are both currently in progress. The $1.465m in committed works will be receipted against invoices prior to June 30. • 15% of the YTD variance valued at $442k is associated with the Peel Terrace/ Queen street roundabout renewal works recently completed in April. This variance will swing into a deficit positon upon receipt of all invoices associated with the project. The project will exceed the budget due to increases in the work scope and unforeseen unfavourable ground conditions identified. City officers have secured a transfer of unspent Regional Road Group grant monies that will be applied against this project together with an additional draw down of funds from the City’s Major traffic Improvement Reserve. A report will go to Council on this matter. There will be a significant under expended variance to budget associated with road projects come June 30.
Various	Bridges	630	2,682,997	2,682,367	100.0%	1,238,367
Major bridge works are completed by Main Roads, with financial recognition of works often not occurring until late in the financial year. To date, works have been completed on the Bussell Highway bridge #241, Yallingup Beach Road bridge #3347 and the Tuart Drive bridge #0238 that should be open to the public soon. The City has limited control over Main Roads scheduling and it is often the case that some Bridge projects are carried over into the following year. The City was recently been notified that bridge works on Layman Road, Kaloorup Road, Boallia Road & Gale Road values at $2.308m will now not commence until the 2022/23 financial year. This variance will continue to increase until invoices for works are provided by Main Roads, which is typically at the end of the financial year.
Various	Car Parks	828,088	1,805,750	977,662	54.1%	(153,887)
52% of the YTD variance valued at $511k is associated with the new car parking for the Dunsborough Lakes Sporting Precinct. Works are well under way with the first progress payment of $281k made in March. The following two projects will not be completed this year and thus will represent under expenditures come June 30: • Dunsborough Chieftain Crescent Carpark Extension $129k YTD, annual budget $240k. • Hotel Site 2 Carpark $230k YTD. There will be a significant under expended variance to budget associated with Car Parks projects come June 30.
Various	Footpaths & Cycleways	625,185	1,458,620	833,435	57.1%	137,180
29% of the year to date variance totalling $241k is associated with the $500k Busselton CBD Footpath Renewal project where the majority of this project has temporarily been put on-hold pending further review and potential re list. 12% of the YTD variance valued at $105K is associated with the Buayanup Drain Shared path project. Not all of this the budget will be expended as the value of the project was reduced towards the end of last financial year, however the amount carried over was not adjusted based on the reduced estimate. 14% of the YTD variance valued at $116K is associated with the Causeway Road Shared Path project. Tender prices for these works have come in higher than anticipated and it is thus unclear if this project will proceed this financial year. There will be a significant under expended variance to budget associated with Footpaths & Cycleway projects come June 30.

Parks, Gardens & Reserves		6,784,883	11,669,123	4,884,240	41.9%	501,173
Various	Busselton Jetty - Capital Expenditure	236,223	545,048	308,825	56.7%	(33,317)
At the time this budget was being prepared the 50 year Jetty plan was being revised and structural assessments were being carried out. To this end, some of the scheduled works were able to be moved forward and as such were not required to be completed this financial year. There will be a variance to budget in the order of $200k come June 30; where these monies will remain in the Jetty Reserve to fund the rescheduled works going forward.
Various	Coastal & Boating	60,148	1,136,800	1,076,652	94.7%	127,522
72% of the variance valued at $775k is attributable to both the stage 2 West Busselton & Forth Street seawall works. A report to Council in late January resulted in a decision to only proceed with the West Busselton works at this time with some of these costs to be offset by the Forth Street Seawall project that has been put on hold. This project has now commenced with committed costs totalling $691k. The expectation is that it will be completed prior by June 30 weather permitting. 18% of the variance values at $200k is associated with a Coastal Adaptation project re the Mitigation of Coastal Flooding. This project is in the design phase with a major portion of the funding anticipated to be outlaid before the end of the FY; subject to the availability of resources and material.
Various	Waste Services	912,321	1,512,500	600,179	39.7%	207,349
Works associated with the Busselton Landfill Post-Closure Capping, Rehab & Remediation budget set at $1m are $657k under budget YTD with the focus this year having shifted to the development of stage two phase 1 of the Dunsborough landfill budgeted at $500k taking priority. There will be a significant under expended variance to budget associated with Waste Services projects come June 30.
Various	Townscape & Vasse River	53,576	1,023,264	969,688	94.8%	243,569
No townscape works of any significance associated with projects in this category have yet to commence, however planning is well advanced. Some of the townscape works in Dunsborough valued at $1.057m will be staged, between the 21/22 and 22/23 financial years. Major Vasse River works valued at $640,000 will commence in April.
Various	Other P&G Infrastructure	5,522,615	7,451,511	1,928,896	25.9%	(43,950)
There are 45 individual Parks & Gardens capital projects budgeted this financial year ranging in value from between a mere $1.8k to $2.118m. • 74% of the YTD variance valued at $ 1.468m is associated with the Dunsborough Lakes Sporting Precinct project and the new Non-Potable Water Network both under construction. • The Barnard Park East Foreshore Landscaping project is reported at $237k over expended to the annual budget. This variance is anticipated to increase to an est. $550k over expenditure to budget, this has been highlighted in Councillor briefings.
Various	Regional Airport & Industrial Park Infrastructure	93,288	286,740	193,452	67.5%	66,254
YTD actual is made up of four separate account strings all part of the Airport development project. Some are completed (underspent) and others may not be spent until the end of the FY depending on timing of the works. A nominal amount was budgeted for unforeseen noise mitigation requirements, resulting from the commencement of RPT services. Some of these works have only just commenced.

Date	Payee	Description	$ Amount
10/03/22	City of Busselton	Geographe Leisure Centre Café – CEO Morning tea with GLC Team	$73.20
29/03/22	Event Brite Ticket - Tonic By The Bay	Budget Breakfast 2022 - 1 April 2022 M. Archer	$32.74
		TOTAL	$105.94

Council 62 25 May 2022

13. Planning and Development Services Report

13.1 SECTION 31 RECONSIDERATION - PROPOSED RECEPTION CENTRE - LOT 21 (NO.64) ESPINOS ROAD, SABINA RIVER

STRATEGIC THEME	ENVIRONMENT - An environment that is valued, conserved and able to be enjoyed by current and future generations.
STRATEGIC PRIORITY	1.1 Ensure protection and enhancement of environmental values is a central consideration in land use planning
SUBJECT INDEX	Development / Planning Applications
BUSINESS UNIT	Development Services
REPORTING OFFICER	Statutory Planning Coordinator - Joanna Wilson
AUTHORISING OFFICER	Director, Planning and Development Services - Paul Needham
NATURE OF DECISION	Regulatory: To determine an application/matter that directly affects a person’s right and interests e.g. development applications, applications for other permits/licences, and other decisions that may be reviewable by the State Administrative Tribunal
VOTING REQUIREMENT	Simple Majority
ATTACHMENTS	Attachment a Location Plan⇩ Attachment b Development Plans⇩ Attachment c Cover Letter and Social Impact Report⇩ Attachment d Waste Management Plan ⇩ Attachment e Risk Management Plan ⇩ Attachment f Traffic Impact Assessment ⇩ Attachment g Noise Impact Assessment ⇩ Attachment h Bushfire Management Plan ⇩ Attachment i Summary of Submissions ⇩ Attachment j Schedule of Referral Responses from Statutory Public Authorities ⇩ Attachment k Bushfire Management Plan Peer Review ⇩

OFFICER RECOMMENDATION

That the Council determines:

A. That the Section 31 Reconsideration for development application DA21/0742 submitted for ‘Reception Centre’ at Lot 21 (64), Espinos Road, Sabina River is considered by the Council to be inconsistent with Local Planning Scheme No. 21 and the objectives of the zone within which it is located.

B. That the Section 31 Reconsideration is refused for the proposal referred to in (A) above subject to the following reasons –

REASONS FOR REFUSAL

1. The proposed development is inconsistent with the City of Busselton Local Planning Scheme No.21, objectives of the Rural zone and the Local Rural Planning Strategy in that the proposal:

(a) would result in the introduction of a significant non-Rural use which would undermine the objectives of the Rural zone which include preserving the operation and development of established rural uses and would be inconsistent with the character and amenity of the area, contrary to objective (d) and (e) of the Rural Zone;

(b) is contrary to the objective that non-agricultural uses will be secondary uses and compatible with the primary established agricultural uses and preserve the ongoing use and development of that land for productive agricultural purposes;

(c) the proposal for 12,000 guests is considered to generate an unreasonable and excessive volume of traffic for the area beyond the anticipated traffic volumes considered acceptable in a rural locality;

(d) in the absence of a traffic management plan, the proposal has not adequately demonstrated that the existing road network is capable of accommodating the proposed number of vehicles;

(e) the noise levels generated by the proposal from music, vehicles, patrons, car parking areas and site infrastructure would result in an unacceptable detrimental impact on the amenity of the neighbouring properties and the wider locality;

(f) in the absence of a dust management plan, the proposal has not adequately demonstrated how the amount of dust generated from the use of the access road and internal access road would not result in an unreasonable impact on the amenity of surrounding properties.

2. The City is not satisfied that the bushfire management issues can be satisfactorily addressed by the proposed development in accordance with the objectives and intent of State Planning Policy 3.7 - Planning in Bushfire Prone Areas and the Guidelines to Planning in Bushfire Prone Areas:

a) the proposal is located in an area of high bushfire risk and the risk assessment has not demonstrated that the risk can be managed, to ensure the protection of people, property and infrastructure;

b) both access roads to the site traverse an Extreme Bushfire Hazard Level in excess of the length requirements specified in the Guidelines;

c) the proposal has not adequately demonstrated the safe and efficient evacuation of patrons whilst simultaneously providing a safe operational environment for emergency services can be achieved, resulting in placing life at an unacceptable level of risk; and

d) inadequate provision of a suitable location for sheltering on site especially for the number of patrons proposed.

EXECUTIVE SUMMARY

The City has received a development application for a Reception Centre to host music events including camping facilities at Lot 21 (No.64) Espinos Road, Sabina River.

The application was advertised (as a complex application) for public comment for a period of 28 days. During the consultation period, the main concerns raised related to traffic, noise from the events and vehicles, amenity impacts on surrounding properties and the impact on the productivity of surrounding farming properties.

The applicant lodged an application for review with the State Administrative Tribunal as the application was not determined within 90 days from receipt of the application (referred to as a ‘deemed refusal’). Pursuant to S.31 of the State Administrative Tribunal Act 2004 the Tribunal has invited the City to reconsider its decision.

Having considered the application, including submissions received in relation to the application, City officers consider that the application is inconsistent with the City of Busselton Local Planning Scheme No. 21 and the broader, relevant planning framework.

It is therefore recommended that the Reconsideration be refused, for the reasons set out in the officer recommendation.

BACKGROUND

The Council is asked to consider an application for a Reception Centre to host music events including camping facilities at Lot 21 (No.64) Espinos Road, Sabina River.

Key information regarding the application is set out below:

1. Landowner: Mayfly Property Group Pty Ltd

2. Applicant: Element Advisory Pty Ltd

3. Site area: 20 Hectares

4. General description of the site: Lot 21 (No.64) Espinos Road is located on the southern side of Espinos Road, close to the junction with Piggott Road and Goulden Road. The site has access to both Espinos Road and Piggott Road. There is currently a Single House and a Rural Workers Dwelling on the Site. The Site was historically farmed and used for grazing of cattle and keeping of horses. The Site is predominantly flat and presently has various trees of species endemic to the area dispersed across the site with rows of trees on the southern and eastern boundaries.

The three lots that abut the site and the lot to the north are all developed with Single Houses and the lot to the east has an olive grove. In the wider context State Forest, horse stud farm and an Extractive Industry site are located to the south along Piggott Road; vineyards and an avocado farm located to the north and a dairy farm uses the majority of surrounding paddocks to the west for grazing.

5. Current development/use: Lot 21 (No. 64) has a Single House and Rural Workers Dwelling. The site was historically used for the grazing of cattle and keeping of horses.

6. Brief description of proposed development: The development application seeks approval for a Reception Centre and includes the following:

· Host music and arts events for an audience of 12,000 patrons, comprising two three-day camping and music events and three single day/overnight events per year. Events would take place only between the months of April to November inclusive.

· Provide camping facilities for up to 6,000 patrons which consists of:

i. 2,000 car camping sites;

ii. 12, six stall shower blocks and 6, sixteen pan toilet blocks with drinking facilities.

iii. The camping area would have an emergency muster point and sufficient space for food vans and first aid tents.

· The music area would comprise of three stages; main, big top and local stage and a further 13 ablution blocks, numerous drinking water facilities and food trucks.

· Noise from sound checks would commence at 10am, events would finish on Fridays at 11pm, Saturdays at 12am and Sundays at 10pm.

· Entry to the site would be from Espinos Road, with a one way traffic system proposed through the site with the exit point onto Piggott Road. In addition to the 2,000 car camping sites there would be an additional 650 day car parking sites and 225m of bus parking to allow for 15 buses at any one time.

· For a three day concert for up to 12,000 patrons, it is proposed that the arrival of campers (2,000 cars) be managed by a ticketing system that specifies arrival times and numbers. 1,000 cars would be scheduled to arrive between 9 AM and 6 PM on the Friday with the remaining 1,000 cars arriving between 8 AM and 12 noon on the Saturday. The remainder of patrons are expected to arrive as follows:

i. 4,000 via event shuttle buses from Margaret River, Dunsborough, Yallingup, Broadwater, and Busselton;

ii. 1,500 via 300 cars parking in day parking, and

iii. 500 via taxi/ drop-off.

7. Applicable Zoning and Special Control Area designations: The site is located within the Rural zone.

8. Land-use permissibility: In the Rural zone Reception Centre is an “A” use which means that the use is not permitted unless the local government has exercised its discretion by granting development approval only after giving special notice in accordance with Clause 64 in Schedule 2 of the Deemed Provisions.

OFFICER COMMENT

During consultation on the application, a number of concerns were raised that are not considered to be relevant planning matters. The exercise of discretion when determining a development application should only take into account relevant considerations as identified within Clause 67 Consideration of application by local government, Schedule 2, Deemed Provisions of the Planning and Development (Local Planning Schemes) Regulations 2015 (the Regulations). The decision-maker has an obligation to exercise their statutory responsibilities appropriately and a decision is required to be based upon sound planning principles.

The matters to be given consideration which are relevant to this development application are outlined in the Statutory Environment section of this report. If an item or issue is not listed it is not deemed to be a valid planning consideration and therefore is not to be given regard in the determination of a development application. For example, while the improvement of the region, including ‘economic development’ is one of the broader aims of the Scheme, economic considerations, including the economic competition as well as demand for a development, are not listed under Clause 67 of the Regulations. Therefore, economic considerations per se should only be considered when setting the planning framework and not when making a determination on an individual development application.

It is considered that the main planning issues relevant for detailed discussion in this report are as follows:

· Zoning and land use permissibility;

· Vehicle access and traffic;

· Bushfire;

· Noise and Amenity; and

· Noise impact on livestock.

Nether the City nor the Department of Primary Industry and Regional Development (DPIRD) have the expertise to comment on the concerns raised. DPIRD recommended seeking advice from Western Dairy in respect of this matter, Western Dairy are a not for profit organisation, funded by dairy farmer levies, Australian Government and DPIRD. Western Dairy have advised that this type of event would not be supported by the dairy industry in light of the stress on the animals and the adverse impacts on milk production, reproduction and adverse behaviour (kicking/stomping).

Officers have not recommended a reason for refusal that specifically relates to the impact on livestock from noise, but are of the opinion that a development of this scale is inappropriate in its setting and would be contrary to a number of the objectives of the Rural zone.

Statutory Environment

The key statutory environment is set out in the City of Busselton Local Planning Scheme 21 (Scheme), the Planning and Development (Local Planning Schemes) Regulations 2015 (Regulations), Schedule 2 of which is the ‘deemed provisions’, which also functionally form part of the Scheme. The key aspects of the Scheme and Regulations relevant to consideration of the application are set out below.

Zoning

The site is zoned ‘Rural’ under the Scheme. The objectives of the Rural zone area as follows:

a. To provide for the maintenance or enhancement of specific local rural character.

b. To protect broad acre agricultural activities such as cropping and grazing and intensive uses such as viticulture and horticulture as primary uses, with other rural activities as secondary uses in circumstances where they demonstrate compatibility with the primary use.

c. To maintain and enhance the environmental qualities of the landscape, vegetation, soils and waterways, to protect sensitive areas especially the natural valley and watercourse systems from damage.

d. To provide for the operation and development of existing, future and potential rural land uses by limiting the introduction of sensitive land uses.

e. To provide for a range of non-rural land uses where they have demonstrated benefit and are compatible with surrounding rural uses.

f. To provide for development and expansion of the viticultural, winemaking and associated tourism activities and other industries related to agricultural activities, in addition to general rural pursuits, in a manner that does not cause adverse environmental impact.

g. To provide for the extraction of basic raw materials, where appropriate.

Land-use and permissibility

The proposed land use is an ‘A’s use in the Zone, and is defined as follows:

"Reception Centre" means premises used for hosted functions on formal or ceremonial occasions.

Clause 67 Consideration of application by local government

Clause 67 of the deemed provisions within the Regulations sets out matters to be given consideration by a local government in considering an application for development approval. The following matters are considered to be relevant to consideration of this application:

(a) the aims and provisions of this Scheme and any other local planning scheme operating within the Scheme area;

(b) the requirements of orderly and proper planning including any proposed local planning scheme or amendment to this Scheme that has been advertised under the Planning and Development (Local Planning Schemes) Regulations 2015 or any other proposed planning instrument that the local government is seriously considering adopting or approving;

(c) any approved State planning policy;

(d) any environmental protection policy approved under the Environmental Protections Act 1986 Section 31 (d);

(e) any policy of the commission;

(f) any policy of the State;

(g) any local planning policy for the Scheme area;

(m) the compatibility of the development with its setting including –

(i) compatibility of the development with the desired future character of its setting; and

(ii) the relationship of the development to development on adjoining land or on other land in the locality including, but not limited to, the likely effect of the height, bulk, scale, orientation and appearance of the development;

(n) the amenity of the locality including the following —

(i) environmental impacts of the development;

(ii) the character of the locality;

(iii) social impacts of the development;

(o) the likely effect of the development on the natural environment or water resources and any means that are proposed to protect or to mitigate impacts on the natural environment or the water resource;

(p) whether adequate provision has been made for the landscaping of the land to which the application relates and whether any trees or other vegetation on the land should be preserved;

(q) the suitability of the land for the development taking into account the possible risk of flooding, tidal inundation, subsidence, landslip, bush fire, soil erosion, land degradation or any other risk;

(r) the suitability of the land for the development taking into account the possible risk to human health or safety;

(s) the adequacy of —

(i) the proposed means of access to and egress from the site; and

(ii) arrangements for the loading, unloading, manoeuvring and parking of vehicles;

(t) the amount of traffic likely to be generated by the development, particularly in relation to the capacity of the road system in the locality and the probable effect on traffic flow and safety;

(u) the availability and adequacy for the development of the following —

(i) public transport services;

(ii) public utility services;

(iii) storage, management and collection of waste;

(iv) access for pedestrians and cyclists (including end of trip storage, toilet and shower facilities);

(v) access by older people and people with disability;

(w) the history of the site where the development is to be located;

(x) the impact of the development on the community as a whole notwithstanding the impact of the development on particular individuals;

(y) any submissions received on the application;

(za) the comments or submissions received from any authority consulted under clause 66;

(zb) any other planning consideration the local government considers appropriate.

Relevant Plans and Policies

Relevant plans and policies must be given due regard in assessing the application, but cannot and do not bind the local government in determining an application for development approval. Plans and policies considered in the assessment of the application are as follows:

State Planning Policy 3.7 – Planning in bushfire Prone Areas

The intent of SPP3.7 is to ‘implement effective, risk-based land use planning and development to preserve life and reduce the impact of bushfire on property and infrastructure.’ SPP 3.7 directs how land use should address bushfire risk management, and applies to all land which has been designated as bushfire prone by the Office of Bushfire Risk Management. The proposal is considered to be contrary to the objectives of the Policy.

State Planning Policy 2.5 – Rural Planning

Seeks to protect and preserve Western Australia’s rural land assets due to the importance of their economic, natural resource, food production, environmental and landscape values. Ensuring broad compatibility between land uses is essential to delivering this outcome. The Policy provides guidance on how rural planning issues should be considered through Strategic planning processes and refers to the Clause 67 of the Planning and Development (Local Planning Schemes) Regulations 2015 for matters to be considered in determining a development application. The proposal is considered to be contrary to the relevant objectives of the Policy. It is considered that the proposal would conflict with the objectives of the strategy.

Local Rural Planning Strategy

Provides guidance on the introduction of uses within the rural zone and seeks to minimise the potential for conflict between agricultural and non-agricultural uses. The site is located within Precinct 1 – Primary Rural and states that grazing uses need to be protected as the precinct has strategic importance as a dairy production area, rural enterprises/tourist accommodation should be low key and sensitively planned and managed to ensure that they do not conflict with dominant rural qualities.

Financial Implications

The application is currently within the State Administrative Tribunal (SAT); if Councillors decided to refuse the application, it is likely the matter would be determined by SAT in Formal Hearings. Costs including external costs for engagement of expert witnesses etc, would be incurred.

Stakeholder Consultation

Consultation on the proposed development was undertaken in the following manner:

· Letters sent directly to surrounding landowners within 3km of the site (extent of the Noise Impact Assessment Area); and

· Two signs erected on the lot; and

· Notification placed in the local paper on 29 October, 5, 12 and 19 November 2021; and

· Development plans and information provided by the applicant were made available for public viewing on the City’s website via ‘Your Say’.

Consultation on the proposal concluded on 25 November 2021 with 130 public submissions received; 76 submissions were in support of the proposal and 54 raised concerns with the development. A schedule of submissions is provided at Attachment I. The key concerns raised in the submissions are provided below:

· Noise;

· Bushfire;

· Impact on livestock and native wildlife;

· Inadequate road network to accommodate the number of patrons;

· Unsuitable location;

The proposed development was referred to the following agencies:

· DWER;

· DPLH (Bushfire Team);

· DPIRD / Western Dairy;

· Department of Health;

· Main Roads WA;

· DFES; and

· DBCA

· WAPOL.

Council 528 25 May 2022

14. Engineering and Work Services Report

14.1 PROPOSAL TO DEDICATE AS PUBLIC ROAD, PORTION OF LOT 4959 OF CROWN RESERVE 42673, CAPE NATURALISTE ROAD, DUNSBOROUGH

STRATEGIC THEME	LIFESTYLE - A place that is relaxed, safe and friendly with services and facilities that support healthy lifestyles and wellbeing
STRATEGIC PRIORITY	2.10 Provide local road networks that allow for the safe movement of people through the District.
SUBJECT INDEX	Crown Land
BUSINESS UNIT	Engineering and Facilities Services
REPORTING OFFICER	Land and Infrastructure Officer - Andrew Scott
AUTHORISING OFFICER	Director, Engineering and Works Services - Oliver Darby
NATURE OF DECISION	Legislative: adoption of “legislative documents” such as local laws, local planning schemes and local planning policies
VOTING REQUIREMENT	Simple Majority
ATTACHMENTS	Attachment a Aerial imagery ⇩ Attachment b Plan 13907 ⇩ Attachment c Plans from development application for Lots 1 and 2 Dunn Bay Road ⇩ Attachment d Dunsborough 1986 ⇩

OFFICER RECOMMENDATION

That the Council supports a request being made to the Minister for Lands to dedicate as road an approximate 200 square metre portion of Lot 4959 of Crown Reserve 42673, where Lot 4959 lies between Cape Naturaliste Road and Lot 1 of Diagram 85620, 61 Dunn Bay Road, Dunsborough.

EXECUTIVE SUMMARY

In Council decision C2105/098, the City approved with conditions, development application DA20/0916 on Lots 1 and 2, 59-61 Dunn Bay Road, Dunsborough, for a mixed use development.

The approved development plans proposes access to car parking bays on Lot 1 from Cape Naturaliste Road. However Lot 4959 of Crown Reserve 42673 lies between Lot 1 and Cape Naturaliste Road, restricting vehicular access from Lot 1 to the road.

To provide legal vehicular access from Lot 1 to Cape Naturaliste Road and to satisfy a condition of development application approval, this report recommends that a portion of Lot 4959 is dedicated as road.

BACKGROUND

Lot 4959 on Plan 13907 is a 1.0m wide strip of land that adjoins the eastern boundary of Cape Naturaliste Road, Dunsborough; extending from Dunn Bay Road for approximately 200m (refer to Attachment A). The land forms part of Crown Reserve 42673, vested with the City for the purpose of “public recreation”.

Plan 13906 (the survey from which Lot 4959 was created) was approved during 1982 (refer to Attachment B). Research of the City’s archived records did not find any documents that explain why Lot 4959 was created, other than for recreational purposes. However the intention at the time of the subdivision was likely to have been to restrict vehicular access from adjoining lots east of Lot 4959 directly to a future road west of Lot 4959 (noting that Cape Naturaliste Road was not constructed at the time). Where narrow strips of land lie adjacent a road, they were generally created to restrict vehicular access to the road (and are often referred to as ‘spite strips’).

During 2021, the City assessed and approved with conditions an application for a new mixed use development on Lot 1, 61 Dunn Bay Road, Dunsborough (DA20/0916, Council decision C2105/098). The development application includes a brewery, tavern, restaurant/cafe, shops and tourist accommodation (refer to Attachment C).

The development plans propose that access to one of two parking areas for the development is from Cape Naturaliste Road. Given this access would be over Lot 4959 of Crown Reserve 42673, a condition of development application approval requires (Condition 4.1)

Arrangements to the satisfaction of the City being entered into to provide for legal access from Cape Naturaliste Road to the development site across the 1.0m wide portion of adjoining recreation reserve (Lot 4959, R42673).

Dedication of portion of Lot 4959 as road would satisfy Condition 4.1 as dedication would provide direct access from Lot 1 to Cape Naturaliste Road. It is for this reason that this report proposes the Council resolves to make a request to the Minister for Lands to dedicate portion of Lot 4549 (where it adjoins Lot 1) to form part of Cape Naturaliste Road, a road under the management responsibility of the City.

Provisions within the Land Administration Act 1997 allows local government to make requests to the Minister for Lands to dedicate land as a road.

OFFICER COMMENT

Should Lot 4959 of Crown Reserve 42673 be dedicated as road as proposed by this report, adjoining Lot 1 would have legal vehicular access to Cape Naturaliste Road, satisfying a condition of development application approval for DA20/0916. However dedicating Lot 4959 as road is contrary to the reason why Lot 4959 was likely created during 1982, which was to restrict vehicular access from Lot 1 (and other lots) to Cape Naturaliste Road.

At the time that Lot 4959 was created during 1982, the Dunsborough town centre was significantly different to what it is today (refer to Attachment D). Four decades later, the planning objectives for the town centre have adapted to the changing town centre.

Today, the Local Planning Scheme No. 21 aims to limit vehicular access to Dunn Bay Road from adjoining lots. Clause 4.21.1(k) of the Scheme states:

No vehicular access to sites shall be taken from Queen Street, Prince Street or Kent Street (between Queen Street and Brown Street), Busselton or Dunn Bay Road or Naturaliste Terrace, Dunsborough, unless no alternative is available, in which case a single crossover width shall be no greater than 5 metres with a cumulative maximum width of 7 metres

Recipient	Purpose	Amount
Busselton Mother’s Day Classic Committee	Assistance to cover the cost of community activities such as face painting to support the Mother’s Day Classic walk/run community fundraising event on 8 May 2022.	$330
Mia Anderson	Assistance with travel related expenses for Mia to represent WA at the U18 Australian National Basketball Championships in Ballarat, Victoria in April 2022.	$500
Zonta Club of Dunsborough	Assistance to cover the cost of the hire of the Naturaliste Community Centre for the Zonta Club of Dunsborough to hold their annual bridge tournament in Dunsborough in June 2022.	$680
April Total		$1,510

Council		17		25 May 2022
12.1	Attachment a		List of Payments - March 2022

Council		35		25 May 2022
12.2	Attachment a		Loan Schedule - March 2022

Council		75		25 May 2022
13.1	Attachment c		Cover Letter and Social Impact Report

Council		532		25 May 2022
14.1	Attachment c		Plans from development application for Lots 1 and 2 Dunn Bay Road

Council		539		25 May 2022
17.1	Attachment a		Letter from Hon. John Carey MLA