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

CITY OF BUSSELTON

MINUTES OF THE Council MEETING HELD ON 22 June 2022

TABLE OF CONTENTS

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

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

2....... Attendance. 3

3....... Prayer. 4

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

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

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

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

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

Previous Council Meetings. 5

8.1          Minutes of the Council Meeting held 8 June 2022. 5

Committee Meetings. 5

8.2          Minutes of the Finance Committee Meeting held 8 June 2022. 5

9....... RECEIVING OF Petitions, Presentations AND DEPUTATIONS. 7

9.1          PETITION - GEOGRAPHE BAY ROAD DUNSBOROUGH.. 7

10..... QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN (WITHOUT DISCUSSION). 11

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

ADOPTION BY EXCEPTION RESOLUTION.. 11

12.1        Finance Committee - 8/6/2022 - LIST OF PAYMENTS MADE - APRIL 2022. 12

12.2        Finance Committee - 8/6/2022 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 APRIL 2022. 22

14.1        RFT 02-22 EXTERNAL CLEANING SERVICES. 55

14.2        REGIONAL ROAD SPEED REDUCTIONS PROJECT PARTNERSHIP - RAC. 59

16.1        VASSE COMMUNITY GARDENS AND VASSE AND DISTRICTS COMMUNITY CENTRE APPLICATIONT TO LEASE. 62

16.2        EXPRESSION OF INTEREST TO LEASE CAMPSITE 7 LOCKE ESTATE. 70

16.3        DEFERRAL OF NEW COUNCIL MEETING SCHEDULE TO COMMENCE AUGUST 2022. 79

17.1        COUNCILLORS' INFORMATION BULLETIN.. 82

items to be dealt with by separate resolution (without debate). 93

12.3        Finance Committee - 8/6/2022 - BUDGET AMENDMENT REQUEST - LOWER VASSE RIVER SEDIMENT REMOVAL PROJECT. 93

14.3        BUDGET AMENDMENT - BUSSELTON FORESHORE EAST REDEVELOPMENT. 96

15.1        BUSSELTON SENIOR CITIZENS CENTRE - FUNDING REQUEST. 99

items for debate. 106

12.4        Finance Committee - 8/6/2022 - BUDGET AMENDMENT - EWS VARIOUS PROJECTS. 106

13..... Planning and Development Services Report. 118

18..... Motions of which Previous Notice has been Given.. 119

19..... urgent business. 119

20..... Confidential Reports. 120

20.1        PROSPECTIVE ACQUISITION BY CITY OF BUSSELTON OF LOT 100 SUES ROAD, YALYALUP FOR COMMUNITY PURPOSES. 121

21..... Closure. 122

 


Council                                                                                      5                                                                         22 June 2022

MINUTES

 

MINUTES OF A Meeting of the Busselton City Council HELD IN the Council Chambers, Administration Building, Southern Drive, Busselton, ON 22 June 2022 AT 5.30pm.

 

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

 

The Presiding Member opened the meeting at 5.30pm.

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

 

2.               Attendance

Presiding Member:

Members:

 

Cr Grant Henley     Mayor

Cr Paul Carter          Deputy Mayor

Cr Sue Riccelli

Cr Ross Paine

Cr Anne Ryan

Cr Jodie Richards

Cr Mikayla Love

 

Officers:

 

Mr Tony Nottle, Acting Chief Executive Officer

Mr Oliver Darby, Director, Engineering and Works Services

Mr Paul Needham, Director, Planning and Development Services

Mrs Naomi Searle, Director, Community and Commercial Services

Mrs Emma Heys, Governance Coordinator

Ms Jo Barrett-Lennard, Governance Officer

 

Apologies:

 

Nil

 

Approved Leave of Absence:

 

Cr Kate Cox

Cr Phill Cronin

 

Media:

 

“Busselton-Dunsborough Times”

 

Public:

 

5

3.               Prayer

 

The prayer was delivered by Pastor Simon Holmes from Busselton Baptist Church.

 

4.               Application for Leave of Absence 

 

Nil

 

5.               Disclosure Of Interests

 

The Mayor noted that a declaration of impartiality interest had been received from Cr Mikayla Love in relation to Agenda Item 12.4, ‘Finance Committee – 8/6/2022 – BUDGET AMENDMENT REQUEST – EWS VARIOUS PROJECTS’. :

 

The Mayor advised that, in accordance with regulation 22(2)(b) of the Local Government (Model Code of Conduct) Regulations 2021, this declaration would be read out immediately before 12.4 was discussed.

 

6.               Announcements Without Discussion

Announcements by the Presiding Member

 

Nil

 

7.               Question Time For Public

 

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

Response to Previous Questions Taken on Notice

 

The following questions were taken on notice by the Council at the 8 June 2022 Ordinary Council meeting:

 

7.1             Mrs Jill Walsh

 

Question

Can the Council please confirm the intent of the change to the Recording and Livestreaming of Meetings Policy, and if, with the addition of a copyright disclaimer on recordings, by sharing the recordings, either in whole or in part, this would constitute a breach of the Policy or copyright?

 

 

Response

(Tony Nottle, Acting Chief Executive Officer)

The intent of the change is to remind users that the video recording is subject to copyright; it was not intended to stop people from being able to share the recording. A person will not infringe copyright by simply sharing the recordings (in whole or in part) using YouTube’s embedded sharing functions.

 

 

                   Question Time for Public

 

7.2             Ms Ingrid Spellman

 

Question

How will the proposed five storey Dugalup Centre respond to the desired future scale and character of the local area, including existing buildings of one and two storeys that are unlikely to change?

 

Response

(Paul Needham – Director Planning and Development Services) 

The desired scale and character is articulated in the planning framework. When the current planning framework was set, and that being what the application is going to be assessed against, the intent at that time was to look at development in this area going to four or five stories.

 

Question
Do the existing character objectives have primacy over the zoning RAC3?

 

Response
(Paul Needham – Director Planning and Development Services)

The  height of the development responds to the desired future scale and character of the street and local area including existing buildings that are unlikely to change. The Council decision of the 25 May 2022 has not advanced to the point where it can be part of the planning framework in a way that is going to influence the outcome.

 

 

7.3             Ms Rebecca Torr

 

Question

Why was the Responsible Authority Report not reviewed by Council before submission to the RJDAP agenda?

 

Response

(Mayor Grant Henley)

Our RARs are written by our planning department, independently and without any interference of the Development Assessment Panel. There are issues of timeliness. Councillors are able to review the RARs, and are able to make submissions as members of the community.

 


8.               Confirmation and Receipt Of Minutes

Previous Council Meetings

8.1             Minutes of the Council Meeting held 8 June 2022

COUNCIL DECISION

C2206/155              Moved Councillor P Carter, seconded Councillor M Love

That the Minutes of the Council Meeting held 8 June 2022 be confirmed as a true and correct record.

CARRIED 7/0

 

Committee Meetings

8.2             Minutes of the Finance Committee Meeting held 8 June 2022

COUNCIL DECISION

C2206/156              Moved Councillor M Love, seconded Councillor S Riccelli

That the Unconfirmed Minutes of the Finance Committee Meeting held 8 June 2022 be noted as received.

CARRIED 7/0

 

 

 


Council                                                                                      8                                                                         22 June 2022

9.               RECEIVING OF Petitions, Presentations AND DEPUTATIONS

9.1             PETITION - GEOGRAPHE BAY 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

Petitions

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

Noting: The item is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Petition Letter

Attachment b    Published Under Separate Cover Petition Signatures  

 

The Officer Recommendation was moved and carried.

 

COUNCIL DECISION

C2206/157              Moved Councillor S Riccelli, seconded Councillor J Richards

That the Council receive the petition from Mr Alan Wilkins in relation to traffic treatments along Geographe Bay Road, Dunsborough.

CARRIED 7/0

 

officer recommendation

That the Council receive the petition from Mr Alan Wilkins in relation to traffic treatments along Geographe Bay Road, Dunsborough.

 

A petition (the Petition) was received by the City on 30 May 2022 from Mr Alan Wilkins (the Petitioner), regarding concerns of the number of vehicles and the speeds in which they are travelling along Geographe Bay Road in Dunsborough.

 

The Petition was lodged by the Petitioner by mail, and was addressed to the Busselton City Council. The request contained within the Petition relates to the installation of traffic treatments; namely low, wide, speed reducing humps along Geographe Bay Road, Dunsborough.

 

The Petition has been signed by 70 people, all of whom are identified by name and address. There are two names within the Petition that do not have local addresses, the other 68 having local addresses within the area to which the Petition pertains.

 

The Petition meets the majority of the clauses of section 6.9 of the City of Busselton Standing Orders Local Law 2018 (the Standing Orders); specifically it meets (b), and (d) through to (g):

(a)       be addressed to the Mayor;

(b)       be made by electors of the district;

(c)       state the request on each page of the petition;

(d)       contain the name, address and signature of each elector making the request;

(e)       contain a summary of the reasons for the request;

(f)        state the name of the person to whom, and an address at which, notice to the petitioners can be given; and

(g)       be respectful and temperate in its language.

 

The Petition does not meet requirements (a) and (c) as it was not addressed to the Mayor and did not state the request on each page of the Petition.

 

The presiding member has the discretion to accept the petition for consideration if it meets a majority of the above requirements.

 

Pursuant to section 6.9(3) of the Standing Orders, the Council has the following options: receive the petition; reject the petition; receive the petition and refer it to the CEO to prepare a report to Council or receive the petition and refer it to the CEO for action.

 

With respect to the subject of the petition, the City periodically undertakes traffic counts to determine the volume of traffic on roads within the district. A traffic count on Geographe Bay Road has been requested to be undertaken when a unit is next available. 

 

Where, through traffic counting, the operating speed is identified to be over the posted limit or if a pattern of non-compliance can be determined, the matter is referred to the WA Police to seek an increased presence for targeted enforcement. Once new data for Geographe Bay Road is collected, it will be reviewed to determine the extent of non-compliance and any other enforceable trends and where appropriate referred to WA Police for assistance.

 

It is considered by officers that the Petition meets a majority of the requirements set out by the Standing Orders and, given the above response and proposed actions to be taken, it is recommended that the petition is received by Council.

 


Council

10

22 June 2022

9.1

Attachment a

Petition Letter

 


 


Council                                                                                      11                                                                      22 June 2022

Presentations

 

Nil

Deputations

 

Nil

 

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

Nil

 

11.             Items brought forward

ADOPTION BY EXCEPTION RESOLUTION

At this juncture the Mayor advised the meeting that, with the exception of the items identified to be withdrawn for discussion, the remaining reports, including the Committee and Officer Recommendations, will be adopted en bloc, i.e. all together.

 

COUNCIL DECISION

C2206/158              Moved Councillor P Carter, seconded Councillor M Love

That the Committee Recommendations for Items 12.1 and 12.2, and the Officer Recommendations for Items 14.1, 14.2, 16.1, 16.2, 16.3 and 17.1 be carried en bloc:

12.1        Finance Committee - 8/6/2022 - LIST OF PAYMENTS MADE - APRIL 2022

12.2        Finance Committee - 8/6/2022 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 APRIL 2022

14.1        RFT 02-22 EXTERNAL CLEANING SERVICES

14.2        REGIONAL ROAD SPEED REDUCTIONS PROJECT PARTNERSHIP - RAC

16.1        VASSE COMMUNITY GARDENS AND VASSE AND DISTRICTS COMMUNITY CENTRE APPLICATIONT TO LEASE

16.2        EXPRESSION OF INTEREST TO LEASE CAMPSITE 7 LOCKE ESTATE

16.3        DEFERRAL OF NEW COUNCIL MEETING SCHEDULE TO COMMENCE AUGUST 2022

17.1        COUNCILLORS' INFORMATION BULLETIN

CARRIED 7/0

En Bloc

 


Council                                                                                      12                                                                      22 June 2022

12.             Reports of Committee

12.1           Finance Committee - 8/6/2022 - LIST OF PAYMENTS MADE - APRIL 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 - April 2022

 

This item was considered by the Finance Committee at its meeting on 8/6/2022, the recommendations from which have been considered by Council.

 

The Committee Recommendation was moved and carried.

 

COUNCIL DECISION

C2206/159              Moved Councillor P Carter, seconded Councillor M Love

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

CHEQUE PAYMENTS

 CHEQUE # 119220 - 119247

                  37,911.19

ELECTRONIC FUNDS TRANSFER PAYMENTS

 EFT # 86435 - 86783 and 86787 - 87066 

            6,673,369.55

TRUST ACCOUNT PAYMENTS

 EFT # 86784 - 86786

                  53,792.34

PAYROLL PAYMENTS

 01.04.22 - 30.04.22

            1,657,295.04

INTERNAL PAYMENT VOUCHERS

 DD # 4833 - 4864, 5194 and 5214

               159,748.56

TOTAL PAYMENTS

 

            8,582,116.68

cARRIED 7/0

En Bloc

 

OFFICER RECOMMENDATION

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

CHEQUE PAYMENTS

 CHEQUE # 119220 - 119247

                  37,911.19

ELECTRONIC FUNDS TRANSFER PAYMENTS

 EFT # 86435 - 86783 and 86787 - 87066 

            6,673,369.55

TRUST ACCOUNT PAYMENTS

 EFT # 86784 - 86786

                  53,792.34

PAYROLL PAYMENTS

 01.04.22 - 30.04.22

            1,657,295.04

INTERNAL PAYMENT VOUCHERS

 DD # 4833 - 4864, 5194 and 5214

               159,748.56

TOTAL PAYMENTS

 

            8,582,116.68

 


EXECUTIVE SUMMARY

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

BACKGROUND

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

OFFICER COMMENT

In accordance with regular custom, the list of payments made for the month of April 2022 is presented for information. 

 

Statutory Environment

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

 

Relevant Plans and Policies

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

 

Financial Implications

There are no financial implications associated with the officer recommendation.

 

Stakeholder Consultation

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

 

Risk Assessment

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

 

Options

Not applicable.

CONCLUSION

The list of payments made for the month of April 2022 is presented for information.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Council

15

22 June 2022

12.1

Attachment a

List of Payments - April 2022

 









Council                                                                                      39                                                                      22 June 2022

12.2           Finance Committee - 8/6/2022 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 APRIL 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

Financial Services

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 - April 2022

Attachment b    Financial Activity Statement - April 2022

Attachment c    Investment Report - April 2022

 

This item was considered by the Finance Committee at its meeting on 8/6/2022, the recommendations from which have been considered by Council.

 

The Committee Recommendation was moved and carried.

 

COUNCIL DECISION

C2206/160              Moved Councillor P Carter, seconded Councillor M Love

That the Council receives the statutory financial activity statement reports for the period ending 30 April 2022, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations 1996.

CARRIED 7/0

En Bloc

 

OFFICER RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 30 April 2022, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations 1996.

EXECUTIVE SUMMARY

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

 

This report has been compiled to fulfil the statutory reporting requirements of the Act and associated Regulations, whilst also providing the Council with an overview of the City’s financial performance on a year to date basis, for the period ending 30 April 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 30 April 2022

The Statement of Financial Activity (FAS) for the year to date (YTD) shows an overall Net Current Position of $5.2M as opposed to the budget of ($13.8M). This represents a positive variance of $19M 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

 

4.89%

3,678,863

2,521,159

1.    Operating Grants, Subsidies and Contributions

5,693,133

3,208,801

4,841,906

77.42%

2,484,332

2,452,729

2.    Other Revenue

554,622

259,606

414,950

113.64%

295,016

(34,308)

3.    Interest Earnings

623,855

561,825

609,250

11.04%

62,030

7,138

Expenses from Ordinary Activities

10.54%

7,702,199

395,711

4.    Other Expenditure

(2,577,928)

(7,914,980)

(9,685,100)

67.43%

5,337,052

59,383

Capital Revenue & (Expenditure)

 

27.55%

14,693,764

1,740,880

5.    Land & Buildings

(3,451,811)

(18,431,270)

(22,802,632)

81.27%

14,979,459

929,338

Plant & Equipment

(884,495)

(2,810,000)

(2,890,000)

68.52%

1,925,505

543,918

Furniture & Equipment

(351,197)

(562,541)

(854,368)

37.57%

211,344

(23,514)

Infrastructure

(16,324,772)

(29,953,087)

(38,537,750)

45.50%

13,628,315

1,148,862

6.    Proceeds from Sale of Assets

28,839

776,071

776,071

(96.28%)

(747,232)

(101,993)

7.    Proceeds from New Loans

21,325,000

25,450,000

25,450,000

(16.21%)

(4,125,000)

0

8.    Self Supporting Loans - Repayment of Principal

55,517

146,069

267,033

(61.99%)

(90,552)

10,580

9.   Total Loan Repayments – Principal

(2,720,229)

(3,050,391)

(3,839,418)

10.82%

330,162

(10,549)

10.  Advances to Community Groups

(1,325,000)

(5,450,000)

(5,450,000)

75.69%

4,125,000

0

11.  Transfer to Restricted Assets

(32,260,662)

(10,011,600)

(10,021,740)

(222.23%)

(22,249,062)

(680,051)

12.  Transfer from Restricted Assets

8,073,017

0

1,735,682

100.00%

8,073,017

1,216,394

13.  Transfer to Reserves

(19,466,479)

(17,651,351)

(23,109,232)

(10.28%)

(1,815,128)

(1,952,648)

 

Revenue from Ordinary Activities

In total, revenue from Ordinary Activities is close to budget, being 4.72% ahead YTD.  There are however material variance items contained within this category, on the face of the Financial Activity Statement, that require comment.

 

1.      Operating Grants, Subsidies & Contributions

Ahead of YTD budget by $2.5M, or 77.4%, 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 and Corporate Services

3,329,852

1,339,927

1,989,925

148.51%

1,846,442

10250

Information & Communication Technology Services – Other Grants & Subsidies

20,363

 -

20,363

(100.00%)

 -

YTD amount recognised represents the subsidies received for the trainee being utilised in the Information Services business unit.  This was not included in budget at the time of development as it was not known whether a trainee would be placed in this financial year.

10152

Other General Purpose Funding - Grants Commission

3,073,628

1,050,040

2,023,588

192.72%

1,867,567

The variance is due to a prepayment of the 22/23 Financial Assistance Grant.  This has been restricted and transferred into the Prepaid Grants Reserve, so will have a nil impact on the net current position for 21/22. It will be unrestricted and transferred back out to be utilised in the 22/23 year.

10151

Rates Administration – Legal Fees Reimbursement

45,961

23,531

22,430

95.32%

1,199

The higher than expected legal fees reimbursement is due to the higher than expected debt recovery proceedings.  All legal costs are recoverable from the properties involved.

10200

Financial Services – Insurance Recoveries

28,197

104,750

(76,553)

(73.08%)

(26,238)

When and how much insurance claims will be is not possible to predict. The full year budget has been allocated over the year based on the monthly trend over the last 4 years.

10227

Finance & Borrowing – Repayment of Interest on Self Supporting Loans

12,579

45,318

(32,739)

(72.24%)

1,910

This is lower than expected due to the SSL not proceeding for the AUDC.  It is offset by lower interest expenses.

B1517

Goose Café – Utilities Reimbursements

 -

10,000

(10,000)

(100.00%)

 -

Nothing received, as there were no costs incurred for which CoB needed to be reimbursed for, due to the café burning down.  The budget was set prior to this occurring, and has nil impact on the NCP due to a corresponding offset in utility costs.


 

Community and Commercial Services

179,194

348,803

(169,609)

(48.63%)

57,268

10542

Club Development – State Government Grants

 -

22,500

(22,500)

(100.00%)

 -

A $30K grant is due from DLGSCI, and activities conducted will be reconciled at year end to determine how much of the grant can be recognised as revenue.

10543

Community Development – State Government Grants

6,397

120,000

(113,603)

(94.67%)

 -

The Lottery West grant of $53K for the Strengthening Communities Program was received in July and is gradually being expended.  A reconciliation will done at year end to determine how much of the grant needs to be recognised as income to offset the expenditure.  A % will require carry over into 22/23 FY as the grant is over 2 years.

10625

Art Geo Administration – State Government Grants

 -

10,721

(10,721)

(100.00%)

 -

Grant funding for the Interpretation Plan for the cultural precinct, completed earlier in the year, are expected in May.

11151

Airport Operations – Contributions

 -

50,000

(50,000)

(100.00%)

 -

This was a RADS grant (Dept of Transport) that has been delayed by DOT. The project will commence in the new FY including receipt of the $50k.

B1361

YCAB (Youth Precinct Foreshore) – Contributions

50,078

38,000

12,078

31.78%

46,327

$40K of the actuals relate to the sponsorship cash from Rio Tinto for the continuation of youth services activities in Busselton and Dunsborough.  There have also been various other grants recognised for completed activities, such as Crime Prevention, SW Youth Fest and leadership Camp, the were not fully catered for at the time of creating the budget in early 2021.

10380

Busselton Library – Parenting Payment Reimbursements

14,749

1,150

13,599

1182.50%

(69)

It was not known at time of setting the budget that these payments would be forthcoming.

Planning and Development Services

916,182

872,775

43,407

4.97%

141,149

10820

Strategic Planning – State Government Grants

 -

18,750

(18,750)

(100.00%)

 -

This grant funding, provided by DPLH, relates to the CHRMAP project which was anticipated to be completed earlier in the financial year but has been held up in response to concerns raised by residents in Siesta Park and Marybrook.  The CHRMAP will be taken to Council in June and, if approved, the final grant payment will be actioned.

10925

Preventative Services – CLAG – Health Dept Grant

45,916

33,250

12,666

38.09%

 -

The CLAG funding received from Dept of Health is more than budgeted due to an anticipated long mosquito breeding season in 2021-22 and very limited larvicide product carried over from the previous season, requiring an increase in the larvicide product funding approved.

10940

Fire Prevention DFES – Contributions

65,746

33,196

32,550

98.05%

65,746

The reconciliation of the Fire Prevention activities conducted in the 1st, 2nd and 3rd quarters resulted in higher than predicted billing and recognition of contributions from DFES.


 

Engineering and Works Services

1,267,904

647,296

620,608

95.88%

407,870

10830

Environmental Management Administration – State Government Grants

 -

11,100

(11,100)

(100.00%)

 -

This money is the Western Ringtail Possum Habitat Revegetation Project. This project has been running for four years and we are now into the final season. The Grant has to be acquitted by the end of September 2022.

The money comes from the national Landcare Program but South West Catchments Council contract us to undertake the works. We invoice SWCC.

The City spends the money first to implement the project then through the annual reporting system sends an invoice to recoup the costs.

11160

Busselton Jetty – Contributions

727,173

438,294

288,879

65.91%

363,586

The full year contributions from BJINC have now been received, earlier than forecast in the budget.  Full year contributions will be $149K less than budget, as the gross margin at the Jetty (upon which the contributions are based), were significantly affected by COVID, and the budget for 21/22 was set on prior years (early 2021), well before the audited financials for BJINC were available (October 2021).

11301

Regional Waste Management Administration

45,659

15,304

30,355

198.34%

(15,304)

Other Councils have contributed more than was originally forecast in the budget.

11404

Plant Purchases (12) – Insurance Recoveries

11,900

 -

11,900

(100.00%)

11,900

Not something that can be predicted or budgeted for.  Has nil impact on the net result as anything received forms part of what is transferred to the Plant Reserve at year end.

11501

Operations Services Works – Workers compensation Reimbursements

251,711

52,020

199,691

383.87%

19,684

Not possible to predict when or how much in workers compensation claims are going to be received.  Budget has been allocated evenly over the year.

C8500

Cycleways Maintenance Busselton – Sundry Reimbursements

12,472

 -

12,472

(100.00%)

 -

This amount represents a reimbursement from Main Roads for costs incurred pruning along the bypass cycleway, for which no budget was included.

                                   

2.      Other Revenue

Ahead of YTD budget by $295K, or 113.6%, 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

54,613

49,419

5,194

10.51%

(824)

10360

Customer Services – Sale of Number Plates

10,636

3,780

6,856

181.38%

188

This financial year there has been an increase in people wishing to acquire personalised plates.

Community & Commercial Services

10,172

4,435

5,737

129.35%

7,761

10380

Busselton Library – Sundry Income

7,500

 -

7,500

(100.00%)

6,000

This income item represents grants received by the Busselton Library from the State Library to assist our senior citizens with understanding and navigating the Health Departments Secure WA app.

Planning & Development Services

86,955

100,808

(13,853)

(13.74%)

(40,475)

10950, 10960, 10970

Animal, Litter & Parking Control – Fines & Prosecutions

42,666

63,199

(20,533)

(32.49%)

(2,777)

Result impacted by improved public compliance coupled with a shift in focus away from prosecution toward education.

Engineering & Works Services

402,882

104,944

297,938

283.90%

(770)

11107

Engineering Services Design – LSL Contribution from Other LGA

10,897

 -

10,897

(100.00%)

 -

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

14,509

10,887

75.03%

(5,436)

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

90,435

268,507

296.91%

(1,350)

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.

 

3.      Interest Earnings

Ahead of YTD budget by $62K, or 11%, due to an increase in interest rates being offered on investments over the last few months.

 

Expenses from Ordinary Activities

Expenditure from ordinary activities is $7.7M, or 10.5%, less than expected when compared to the budget YTD. 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.

 

4.      Other Expenditure  

$5.3M, or 67.4%, 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

95,625

69,170

(26,455)

(38.2%)

1,105

10001

Office of the CEO

41,862

69,170

27,308

39.5%

7,050

The underspend relates to the inter-council initiatives budget line item, which has not been spent to date. 

10011

Emergency Contingency Costs (Other)

53,764

 -

(53,764)

(100.0%)

(5,945)

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

990,760

899,775

(90,985)

(10.1%)

(55,648)

10000

Members of Council

525,267

589,561

64,294

10.9%

(521)

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

32,942

50,910

17,969

35.3%

3,446

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)

57,221

16,666

(40,555)

(243.3%)

(57,221)

YTD represents partial allocation of the funds for the You Choose Program.  The full year budget of $100K will be allocated in May / June.

10700

Public Relations

85,775

97,851

12,076

12.3%

5,131

The variance is largely attributable to catering for civic events being under budget due to less events being run. 

Community and Commercial Services

1,205,321

6,700,852

5,495,531

82.0%

118,610

10532

BPACC Operations

2,860

37,500

34,640

92.4%

 -

BPACC operational activity will not commence until 2023.

10533

Welfare / Senior Citizens

90,081

65,097

(24,984)

(38.4%)

(22,520)

The 4th instalment of the yearly grant funding agreement for the Senior Citizens was paid in April, rather than in June where it was budgeted.

10543

Community Development

70,234

176,318

106,084

60.2%

27,400

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

641,192

1,053,574

412,382

39.1%

90

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

168,113

140,637

(27,476)

(19.5%)

(41,514)

This is due to MRBTA invoicing for visitor servicing which we pay at the beginning of the quarter as opposed to the end of the quarter.


 

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

1,921,260

1,919,282

99.9%

191,676

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%

 -

The budget YTD represents the City’s contribution to the AUDC project, which has been deferred.  This was to be 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

99,668

88,620

(11,048)

(12.5%)

3,860

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%)

 -

This unbudgeted spend represents the return of unspent grant funds to DFES for the 20/21 BRP program.

Various

Bushfire Brigades & SES

14,987

1,673

(13,314)

(795.8%)

 -

Reconciliation and re-imbursement of the brigades was not budgeted to occur until June.

Engineering and Works Services

186,555

156,563

(29,992)

(19.2%)

(8,544)

10830

Environmental Management Administration

16,037

937

(15,100)

(1611.5%)

 -

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

119,383

50,000

(69,383)

(138.8%)

(1,207)

Rendezvous Road Refuse site remedial works.

 

5.      Capital Expenditure  

YTD there is an underspend variance of 59.4%, or $30.7M, in total capital expenditure, with YTD actual at $21M against the YTD budget of $51.7M. 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

41,670

39,071

93.8%

4,167

10610

Property Services Administration

2,599

41,670

39,071

93.8%

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

3,449,212

18,389,600

14,940,388

81.2%

925,171

B9614

Dunsborough Lakes Sporting Precinct-Pavilion /Changeroom Facilities

16,172

891,668

875,496

98.2%

200,267

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

431,771

100,000

(331,771)

(331.8%)

(309,882)

The full year budget of $500K for this project was forecast to be completed by June, however works were completed in February and billing complete in April.  By year end there will be savings to budget of approximately $68K, which will remain in the admin building reserve.

Various

Busselton Performing Arts Convention Centre

2,304,500

15,453,305

13,148,805

85.1%

1,004,166

Construction commenced in February, a lot later than originally forecast.  Unspent budget at June 30 will remain in reserve and restricted assets to be carried over into the following financial year.

B9300/1/2

Aged Housing

Capital Improvements

38,148

182,250

144,102

79.1%

 -

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

89,072

213,852

124,780

58.3%

(1,607)

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)

139,812

164,240

24,428

14.9%

(22,915)

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.

B9608

Demolition Allocation (Various Buildings)

 -

15,000

15,000

100.0%

5,000

Any actual demolition costs are included in the Loss on Disposal calculations of the buildings in question, and will not appear here.

B9610

Old Butter Factory

17,991

6,000

(11,991)

(199.8%)

 -

The YTD overspend is due to 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.

It is likely that this project will need to be re-listed in next financial year’s budget, with the funding remaining in reserve until then as well.

B9612

Churchill Park

Renew Sports Lights

75,767

212,850

137,083

64.4%

(150)

The installation of both the new oval lighting and renewed lighting at the trotting track has commenced. There is a budget amendment pending as the costs will exceed budget. The project is anticipated to be completed by June 30, however lack of consistent contractor availability may cause this project to carry over into the next financial year.

B9613

CCTV Installation

29,921

40,000

10,079

25.2%

10,000

The CCTV installation at the GLC is complete, but we intend to use the remaining funds to upgrade corresponding components in the CCTV infrastructure to improve the overall system and allow for future expansion.

B9615

Naturaliste Community Centre AMP

641

72,000

71,359

99.1%

 -

Delays due to contractor availability, these works will be re listed into next financial year.

B9616

Buildings Asset Management Plan High Use Allocation

121,249

150,000

28,751

19.2%

1,070

Much of the spend in this area is purely maintenance related and will be re-allocated against the operational budget.  The underspend against budget that will result at year end will be offset by the overspend in operations due to the re-allocation of actual maintenance costs.

B9617

Buildings AMP Renewal Allocation - Meelup Ablution

7,389

200,000

192,611

96.3%

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

16,068

 -

(16,068)

(100.0%)

(327)

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 tender will not be awarded this FY due to staff / resource shortages and the budget allocation will need to be rolled over into next FY. This piece of work will be picked up by the Airport Business Development Officer position, funding endorsed by Council at 11 May Council meeting.

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). The Facilities team are expecting to raise purchase orders and confirm works before the end of this financial year.

Plant & Equipment

884,495

2,810,000

1,925,505

68.5%

543,918

10250

Information & Communication Technology Services

 -

40,000

40,000

100.0%

 -

Vehicle now due to be delivered July.  The budget for this will be carried over in the Plant Reserve and re-listed for expenditure in the 22/23 budget year.

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.  The trailers have in fact been ordered, however delivery is not expected until October.  The budget for this will be carried over in the Cemetery Reserve and re-listed for expenditure in the 22/23 budget year.

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 May.

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 now due in July. The budget for this will be carried over in the Plant Reserve and re-listed for expenditure in the 22/23 budget year.

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 May.

11001

Engineering Services Administration

 -

35,000

35,000

100.0%

 -

Vehicle due in November 2022.  The budget for this will be carried over in the Plant Reserve and re-listed for expenditure in the 22/23 budget year.

11107

Engineering Services Design

69,015

185,000

115,986

62.7%

45,000

Survey equipment worth $73K incorrectly budgeted here, but actual cost has been allocated under Furniture & Office Equipment. 2 x cars delivered.  Survey ute to be ordered in May.

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 should be installed by the end of June.

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

896,000

475,361

53.1%

450,000

Waste truck P166019 to be sent to auction mid May.  Bin cleaning trailer not yet ordered. DWF site ute to be held and not replaced at this time.  New waste truck to be delivered in June.


 

11403

Plant Purchases (P11)

130,486

569,000

438,514

77.1%

25,000

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

 -

50,000

50,000

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

 -

75,000

75,000

100.0%

35,000

Vehicle ordered, delivery now expected in July.  The budget for this will be carried over in the Plant Reserve and re-listed for expenditure in the 22/23 budget year.

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 is an underspend against budget in the contractor line that will offset this spend against a nil budget.

Furniture & Office Equipment

351,197

562,541

211,344

37.6%

(23,514)

10250

Information & Communication Technology Services

176,683

220,891

44,208

20.0%

(13,433)

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 initial tender process 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 closed on 14 April 2022, and received 9 submissions.  These are currently being evaluated with a decision expected in May.

10590

Naturaliste Community Centre

16,326

51,650

35,324

68.4%

 -

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.

10591

Geographe Leisure Centre

11,840

 -

(11,840)

(100.0%)

(11,840)

The entire budget allocation was inadvertently attributed to June, resulting in the overspend timing variances.  The 11.8k was expensed for indoor pool blankets, in time for winter, with remaining budget 18k for replacement of fitness equipment.

11107

Engineering Services Design

73,211

 -

(73,211)

(100.0%)

 -

Cost of new survey equipment that was incorrectly budgeted for under Plant & Equipment, instead of Furniture & Office 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 was no budget for in this particular line, however it was believed at the time of procurement that it would be offset by considerable savings in other areas.

Infrastructure

16,324,772

29,953,087

13,628,315

45.5%

1,148,862

Various

Roads

6,752,938

9,521,677

2,768,739

29.1%

(145,251)

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.

·                48% of the YTD variance valued at $1.323m is associated with the two remaining Regional Road Safety Program projects that are both currently in progress. These works will be completed by June 30.  

·                12% of the YTD variance valued at $340k is associated with the Kaloorup Road Blackspot project with works to come in under budget by est. $400k.

·                The Peel & Queen Street Roundabout Service Relocation works were recently completed in April. This variance will swing into an estimated $380k deficit positon upon receipt of all invoices associated with the project. A budget amendment 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

977

3,921,994

3,921,017

100.0%

1,238,650

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 has now been open to the public. Invoiced for two of these projects have been received and will be will be entered in May.

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 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

1,002,238

1,857,380

855,142

46.0%

(122,521)

39% of the YTD variance valued at $336k is associated with the new car parking for the Dunsborough Lakes Sporting Precinct where works are progressing.

The following two projects will not be completed this year and thus will represent under expenditures come June 30:

•             Dunsborough Chieftain Crescent Carpark Extension $160k 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

692,100

1,633,614

941,514

57.6%

108,080

29% of the year to date variance totalling $275k 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.

11% of the YTD variance valued at $104K 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.

16% of the YTD variance valued at $155K 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

7,472,066

12,520,482

5,048,416

40.3%

164,177

Various

Busselton Jetty - Capital Expenditure

368,642

681,310

312,668

45.9%

3,843

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

64,148

1,156,800

1,092,652

94.5%

16,000

70% of the variance valued at $773k 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 Fourth Street Seawall project that has been put on hold.  This project has now commenced with contractor costs to be incurred in May.

18% of the variance valued at $198k 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

973,427

1,737,500

764,073

44.0%

163,894

Budget for the Busselton Landfill Post-Closure Capping, Rehab & Remediation of $1M are $657k under budget YTD, as works associated with have paused while awaiting DWER’s instruction around remediation options associated with property classifications. Focus for the remaining financial year shifted to earthworks for the construction of Dunsborough Landfill Cell 2 budgeted at $500k. It is anticipated, come June 30, there will be a significant under expended variance to budget associated with several Waste Services projects.

Various

Townscape & Vasse River

55,980

1,261,823

1,205,843

95.6%

236,155

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.

The budget of $640K for major Vasse River works, that commenced in April, will be moved into the operational area via a budget amendment in June, as it is not capital related.

Various

Other P&G Infrastructure

6,009,868

7,683,049

1,673,181

21.8%

(255,715)

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

•         67% of the YTD variance valued at $ 1.116m is associated with the Dunsborough Lakes Sporting Precinct project.

•         The Barnard Park East Foreshore Landscaping project is reported at $532k over expended to the annual budget, this has been highlighted in Councillor briefings.

Various

Drainage

311,165

211,200

(99,965)

(47.3%)

(94,273)

The City’s drainage project on Carey street is reported at $95k over budget YTD. The budget for the footpath in the same location is under budget $197k. City Labour costs associated with the footpath may be included in the drainage project; if this is found to be the case the costs will be reallocated.

Various

Regional Airport & Industrial Park Infrastructure

93,288

286,740

193,452

67.5%

 -

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.

 

 

6.      Proceeds From Sale of Assets  

YTD there have been minimal proceeds from sale of assets recorded against the YTD budget of $776K. This is due to the continuing delays in delivery of acquisitions, and the associated transfer to auction of the vehicles being replaced.  Some vehicles that were planned to be traded/auctioned have also been retained and redeployed instead. 

 

7.     Proceeds from New Loans

By YTD April it was forecast that the self-supporting loan to BJINC of $4M for the AUDC project would have been drawn.  This will no longer be proceeding.  A further $125K of self-supporting loans to community groups was also forecasted to have been drawn and on-lent by this stage of the financial year.  The combination of these things accounts for the $4.125M negative variance YTD.

 

        This is offset by a corresponding positive timing variance of $4.125M in Advances to Community Groups.

 

8.     Self Supporting Loans – Repayments of Principal

         This line is $91K under budget due to the AUDC loan not proceeding.

 

9.     Total Loan Repayments - Principal

         Repayments of the principal on loans is $330K under budget YTD, due to the loan for the BPACC not proceeding in the timeframe as budgeted, as well as the deferment of the AUDC project and hence the non-draw down of the associated self-supporting loan to BJINC (offset per #8 above).

 

10.   Advances to Community Groups

         Although it is not possible to predict when these loans will be applied for, the negative variance is 100% offset by the positive variance in Proceeds from New Loans outlined above.  YTD the variance is $4.125M mainly due to the AUDC being put on hold.

 

11.   Transfer to Restricted Assets  

There is a YTD variance in transfers to Restricted Assets of $22.2M because there is usually no budget for this item during the year.  The transfers are usually not possible to predict, and are fully reconciled only at year end.

 

At the time of budgeting it is not possible to predict what grants will be received, and in what timeframe, nor when they will be spent and hence potentially transferred to Restricted Assets (or unspent portions thereof). 

 

YTD, loans of $20M were received for BPACC that were transferred to restricted assets ($10M of which was budgeted for per a budget amendment for an additional $10M borrowing), until utilized, as well as $8.6M in various government grants, plus $1.7M in Roadwork Bonds, and $1.9M in developer contributions, deposits and bonds.

 

12.   Transfer from Restricted Assets

YTD, there has been $8.1M transferred from Restricted Assets into the Municipal Account. The transfers are usually not possible to predict, and are fully reconciled only at year end.

 

This was attributable to $3.4M of grant money for works completed and reconciled, $713K of Roadwork Bonds, $463K of caravan park deposit refunds, utilization of $1.7M of restricted loan money (BPACC), and $1.8M of various other bonds and deposits.

 

13.   Transfer to Reserves

YTD, there has been $1.8M more transferred to reserves than budgeted due to receiving the Financial Assistance Grants for the 2022/23 year in advance.  This was put aside in the Prepaid Grants Reserve to be utilised next financial year.

 

Investment Report

As at 30th April 2022 the value of the City’s invested funds increased to $107M from $97M as at 31st March 2022.

 

As at 30th April 2022 the 11AM account balance is $23M, up from $13M as at 31st March 2022.

 

The increase of $10M in the investment pool is due to:

·        Addition of $10M loan received for the BPACC project deposited into the 11am account (an intermediary account which offers immediate access to the funds compared to the term deposits, and a higher rate of return compared to the cheque account).

 

During the month of April six term deposits totalling the amount of $18M matured. These were renewed for a further 69 days at 0.91% on average.

 

The official cash rate remains steady for the month of April at 0.10%.

 

Borrowings Update

During the month a further two lots of $5M were drawn from the WATC for the BPACC project, per the budget amendment in March that brought these planned borrowings in earlier than originally forecast in the LTFP, due to increasing interest rates.  Also, $435K of principal and $85K of interest was repaid on existing loans.  The attached Loan Schedule outlines the status of all existing loans as at April YTD.

 

Chief Executive Officer – Corporate Credit Card

There were no transactions made on the Chief Executive Officer’s corporate credit card during April 2022.

 

Donations & Contributions Received

During the month no donations or contributions were received.

 

Statutory Environment

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

 

Relevant Plans and Policies

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

 

Financial Implications

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

 

Stakeholder Consultation

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

Risk Assessment

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

 

Options

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

CONCLUSION

As at 30th April 2022, the City’s net current position stands at $5.2M. The City’s financial performance is considered satisfactory, and cash reserves remain strong.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

 


Council

40

22 June 2022

12.2

Attachment a

Loan Schedule - April 2022

 


Council

52

22 June 2022

12.2

Attachment b

Financial Activity Statement - April 2022

 














Council

54

22 June 2022

12.2

Attachment c

Investment Report - April 2022

 


Council                                                                                      58                                                                      22 June 2022

14.1           RFT 02-22 EXTERNAL CLEANING SERVICES

STRATEGIC THEME

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

STRATEGIC PRIORITY

2.12 Provide well maintained community assets through robust asset management practices.

SUBJECT INDEX

Award of Tender RFT 02-22 External cleaning services

BUSINESS UNIT

Facilities Services

REPORTING OFFICER

Facilities Maintenance Coordinator - John Farrier

Manager Major Projects and Facilities - Eden Shepherd

AUTHORISING OFFICER

Director, Engineering and Works Services - Oliver Darby

NATURE OF DECISION

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

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment A – Provided Under Separate Cover - RFT 02/22 Confidential Evaluation Report

 

The Officer Recommendation was moved and carried.

 

COUNCIL DECISION

C2206/161              Moved Councillor P Carter, seconded Councillor M Love

That the Council

1.    Endorses the outcome of the evaluation panel’s assessment of the tenders received in response to RFT 02/22 External Cleaning Services; and

2.    Accepts the tender from

a)    Uniting Global Pty Ltd in respect of SP2 - City owned public toilets as the most advantageous tender; and

b)    Mickaz Nominees Pty Ltd ATF the Flynn Family trust TA as South West Cleaning in respect of SP3 – City owned barbeques as the most advantageous tender.

CARRIED 7/0

En Bloc

 

officer recommendation

That the Council

1.    Endorses the outcome of the evaluation panel’s assessment of the tenders received in response to RFT 02/22 External Cleaning Services; and

2.    Accepts the tender from

a)    Uniting Global Pty Ltd in respect of SP2 - City owned public toilets as the most advantageous tender; and

b)    Mickaz Nominees Pty Ltd ATF the Flynn Family trust TA as South West Cleaning in respect of SP3 – City owned barbeques as the most advantageous tender.

EXECUTIVE SUMMARY

The City issued RFT 02/22 External Cleaning Services (the RFT) for the City’s ongoing external cleaning requirements. This report recommends that Council endorse the outcome of the evaluation panel’s assessment, and accept tenders for the two separable portions of the contract. 

 

BACKGROUND

The City of Busselton's budget includes provision for scheduled cleaning services for all City-owned facilities including the City’s administration building, halls, public toilet blocks and BBQ hotplates. The City invited suitably qualified and experienced contractors to make submissions to enter into a contract for the provision of these services, with the RFT separated into the following separable portions:

1.         SP2 Cleaning of City owned public toilets

2.         SP3 Cleaning of City Owned BBQs and Surrounds

OFFICER COMMENT

The City of Busselton is committed to maintaining high levels of cleanliness at all City owned facilities.

 

On 23 March 2022 tenders were invited via VendorPanel and advertised in the West Australian newspapers.  The RFT outlined the service expectations, specifications and standards associated with providing cleaning services to the City. A requirement was included for the contractor(s) to maintain for 90 days a photographic log of facility conditions pre and post cleaning, which can be made available to the City by request within this period.

 

Tenders closed on 21 April 2022 and the City received a total of four submissions across the two separable portions as follows:

 

 

Tenderer

Location

SP2

SP3

1.

PICKWICK GROUP PTY LTD ATF THE PICKWICK CLEANING SERVICES UNIT TRUST  (Pickwick Group)

Perth, WA

     ü

ü

2.

ANSIB PTY LTD ATF WARD FAMILY TRUST (T&N Cleaning Services)

Busselton, WA

     ü

ü

3.

UNITING GLOBAL PTY LTD (Uniting Global)

 

Busselton, WA

     ü

ü

4.

MICKAZ NOMINEES PTY LTD ATF THE FLYNN FAMILY TRUST TA South West Cleaning (South West Cleaning)

Bunbury, WA

     û

ü

 

Assessment process

In accordance with the City’s procurement practices and procedures, assessments were carried out by an evaluation panel comprising City officers with relevant skills and experience. The assessment process included:

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

·        Assessing submissions received against the Qualitative Criteria weighted as detailed below.


 

 

Criteria

Weighting

(a)

Price

40%

(b)

Relevant Experience

25%

(c)

Local Content

5%

(e)

Tenderer’s Resources

10%

(f)

Demonstrated Understanding

20%

 

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

 

Summary of Assessment Outcomes

The tender evaluation resulted in the following tenderers being considered the most advantageous to the City:

·    Uniting Global PTY LTD (Uniting Global) for SP2 – Cleaning of City owned public toilets; and

·    MICKAZ NOMINEES PTY LTD ATF THE FLYNN FAMILY TRUST TA South West Cleaning (South West Cleaning) for SP3 – Cleaning of City owned BBQs and surrounds.

 

Both submissions were of a high standard, and the price (schedule of rates) tendered was significantly lower than the other submissions, therefore it is recommended that a contract be entered into with each of the above tenderers for each separable portion.

 

Statutory Environment

Section 3.57 of the Local Government Act 1995 requires a local government to invite tenders before it enters into a contract of a prescribed kind under which another person is to supply goods and service. Part 4 of the Local Government (Functions and General) Regulations 1996:

·        requires that tenders be publicly invited for contracts where the estimated cost of providing the required goods and/or service exceeds $250,000; and

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

 

With regard to the RFT, City officers have complied with abovementioned legislative requirements.

 

As the Contract value is greater than $500,000, and in accordance with section 5.43(b) of the Act and Council delegation DA 1-07, Council endorsement of the preferred tenderers is required.

 

Relevant Plans and Policies

The City's Purchasing policy, Regional Price Preference, occupational health and safety and asset management policy were all relevant to the Tender, and have been adhered to in the process of requesting and evaluating tenders. 

 

Financial Implications

If the officer recommendation is accepted, the City will enter into two separate contracts with a total estimated value as per below, based on the schedule of rates received and the anticipated number of cleans:

·        SP2 - Cleaning of City owned public toilets - $2,373,693.53 to Uniting Global PTY LTD for the full contract term of two years with the option of three twelve month extensions and;

·        SP3 – Cleaning of City owned BBQ’s and surrounds - $512,334.21 to MICKAZ NOMINEES PTY LTD ATF THE FLYNN FAMILY TRUST TA South West Cleaning for the full contract term of two years with the option of three twelve month extensions

 

The works are funded through the facilities operational budget, with a forecast budget for 2022-23 of $520,346, based on the current year budget and an inflation factor of 3.5%.  The combined contract price is approximately 7% higher compared to the forecast budget. The increase in tendered rates for both separable portions is primarily due to COVID-19 related issues, tightening of the supply chain and increasing fuel, material and labour costs.  The intention is to review the frequency of cleans to various facilities to bring the quoted prices within budget and to find savings in other area of the facilities budget to accommodate the difference.

 

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.         Determine to award the tender to an alternative tenderer/s. In the view of the Officers this could result in the tender being awarded to a tenderer that is not most advantageous to the City.

2.         To not award the tender. This would mean going back out to tender, resulting in significant delays to the contract award and significant delays to the provision of cleaning services to City owned facilities.

CONCLUSION

The submission from Uniting Global for SP2 (public toilets) and from Southwest Cleaning for SP3 (barbeques) are considered the most advantageous to the City.  It is recommended that these suppliers be awarded the RFT in separable portions for ongoing external cleaning services to the City. 

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

If endorsed by Council, and subject to any minor variations, it is expected the City will enter into a contract with the preferred tenderers by end June 2022. 

 

It is intended that commencement of the contracts for SP2 and SP3 will both begin consecutively on 17 July 2022, immediately upon the cessation of the incumbent contractor on 16 July 2022. 

 


Council                                                                                      62                                                                      22 June 2022

14.2           REGIONAL ROAD SPEED REDUCTIONS PROJECT PARTNERSHIP - RAC

STRATEGIC THEME

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

STRATEGIC PRIORITY

2.2 Work with key partners to facilitate a safe, healthy and capable community.

SUBJECT INDEX

Roads - traffic and transport

BUSINESS UNIT

Design and Survey

REPORTING OFFICER

Transport Sustainability Officer - Carolyn Ryder

AUTHORISING OFFICER

Director, Engineering and Works Services - Oliver Darby

NATURE OF DECISION

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

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Nil

 

The Officer Recommendation was moved and carried.

 

COUNCIL DECISION

C2206/162              Moved Councillor P Carter, seconded Councillor M Love

That the Council:

1.    Support the City partnering with the Royal Automobile Club of WA Inc. (RAC) and the Shire of Augusta Margaret River to undertake a regional review of road speed limits to inform the implementation of trial speed reductions;

2.    Notes the RAC’s offer of $500,000 funding to be held in trust for associated project costs; and

3.    Authorises the CEO to enter into a Heads of Agreement with the RAC for the project.

CARRIED 7/0

En Bloc

 

OFFICER RECOMMENDATION

That the Council:

1.    Support the City partnering with the Royal Automobile Club of WA Inc. (RAC) and the Shire of Augusta Margaret River to undertake a regional review of road speed limits to inform the implementation of trial speed reductions;

2.    Notes the RAC’s offer of $500,000 funding to be held in trust for associated project costs; and

3.    Authorises the CEO to enter into a Heads of Agreement with the RAC for the project.

EXECUTIVE SUMMARY

With the aim of saving lives and reduce serious injuries on our roads, the RAC have approached the City of Busselton and the Shire of Augusta Margaret River with an opportunity to partner together to conduct a holistic and coordinated review of road speeds within the region. The reduction of speed limits, where identified as appropriate, may then be implemented as a trial to determine the benefits or otherwise.

This report seeks support of Council to progress with the establishment of this partnership under a Heads of Agreement, noting that RAC have offered to fund the project, outside of some in kind contribution from the City through officer time.

BACKGROUND

RAC is a member led organisation dedicated to improving road safety for all Western Australians.  RAC’s 2030 Vision is for a safer, sustainable and connected future for all Western Australians. Together with WA state and local governments, RAC seeks practical solutions to reduce road deaths and serious injuries on the road network.

 

RAC Group Executive, Patrick Walker previously addressed the Council on a project to review road speeds throughout the City of Busselton and the Shire of Augusta Margaret River. It is intended that the project will culminate in a proposed trial implementation of reduced speed limits on roads identified through the review. Upon completion of the trial the information and data could (subject to success) be used to implement speed reductions throughout the whole of Western Australia. 

 

This report seeks endorsement from the Council to progress with the establishment of a partnership between RAC, the City of Busselton and the Shire of Augusta Margaret River, to progress the project.

OFFICER COMMENT

As of May 2022, there have been 53 fatalities on WA roads this year, of which 36 were in regional areas. The RAC has stated there is a correlation between vehicle speed and road trauma, and WA speed limits on rural roads are amongst the highest in Australia. It has been suggested through correspondence with the RAC that a 10% reduction in mean speed could result in an approximate 30% reduction in road crashes resulting in fatalities and serious injuries.

 

This project partnership offers the City and the Shire of Augusta Margaret River the opportunity to partner with RAC, with the objective of a holistic review of road speeds throughout the region, and a focus on identifying and implementing appropriate speed limit reductions on selected roads.

 

The review would develop a network blueprint in consultation with all three project partners and relevant key stakeholders such as Main Roads Western Australia (MRWA), who are the governing body for the approval and implementation of statutory signage, speed limits and line marking throughout Western Australia. The community and broader stakeholders would be engaged on the blueprint, prior to implementing any proposed speed limit trial reductions. It is intended that any trial reductions in speed limits would be for three years, to allow time for behaviours to become embedded, and data collected and analysed. This will include crash data and travel speeds, as well as monitoring community sentiment throughout the trial.

 

RAC have indicated they will provide funding for the project, and will assist with aspects of project delivery including community engagement activities to bring the community on the journey, before and throughout the trial period.

 

Statutory Environment

The Road Traffic Code 2000 Part 3 (11) establishes the regulatory environment for driver adherence to established speed limits.

 


The State Government’s Driving Change – Road Safety Strategy 2020-2030 establishes the objective of   the number of people fatally, severely or seriously injured by 50--70% by 2030 and to zero by 2050. The State Strategy prioritises the five safe systems principles below:

1.         Safe road users – supporting positive cultural change

2.         Safe Roads – building safer roads and road systems

3.         Safe vehicles – encouraging and promoting the uptake of safety technology

4.         Safe speeds – supporting and implementing speed reforms

5.         Post-crash response – reducing the impacts of road crashes

 

This project seeks to implement safe system principle 4 – supporting and implementing speed reforms.

 

Once Council endorsement for the project has been obtained, the City will enter into a Heads of Agreement to record the key terms that have been discussed and will subsequently enter into a legal agreement for purposes of implementing and delivering the project.

 

Relevant Plans and Policies

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

 

Financial Implications

The RAC has $500,000 of funding available this financial year to enable this project to be undertaken.  It is proposed this would be paid to the City prior to 30 June 2022 and held in trust, to be utilised for agreed activities. A Heads of Agreement will be prepared and should any of this funding remain unspent, it would be returned to RAC at an appropriate time. The intention is that funding from the RAC will fund the whole project, however an “in-kind” contribution of officer time will be required from several City Officers.

 

Stakeholder Consultation

RAC have commenced initial engagement with senior representatives of the WA Transport Portfolio, and relevant Ministers, on the concept of local government–led safer speed trials. This reciprocal communication channel will continue to further facilitate agency support for implementation.

 

As detailed in the officer comment, broader community engagement and consultation will be required, and the intention will be to invite input from all road users -transport and freight drivers, residents, cyclists, business owners and others.

 

It should be noted that the safety benefit from speed limit reductions on regional roads far outweighs the slight increase in travel time, however road speed reductions may provoke some displeasure with some community members.

 

All speed reduction requests must be submitted to Main Roads WA for approval in the first instance, therefore Main Roads are primary stakeholders.

 

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.

CONCLUSION

Partnering in this project would enable the City to be involved in implementing evidence based solutions to reduce road deaths and serious injuries on the road network.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The Heads of Agreement should be signed and funds accepted before 30 June 2022.

  


Council                                                                                      68                                                                      22 June 2022

16.1           VASSE COMMUNITY GARDENS AND VASSE AND DISTRICTS COMMUNITY CENTRE APPLICATIONT TO LEASE

STRATEGIC THEME

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

STRATEGIC PRIORITY

2.12 Provide well maintained community assets through robust asset management practices.

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

Simple Majority

ATTACHMENTS

Attachment a   Vasse Community Garden Concept Plan 2020

Attachment b    Vasse Community Garden Proposed Leased Premises

Attachment c    Vasse & District Community Centre Proposed Leased Premises  

 

The Officer Recommendation was moved and carried.

 

COUNCIL DECISION

C2206/163              Moved Councillor P Carter, seconded Councillor M Love

That the Council:

1.         Endorse the excision of Lot 505, Deposited Plan 57391 from Crown Reserve 48251 for the creation of a new reserve designated for the purpose of “Recreation Trail, Recreation and Community” with power to lease or licence for any term not exceeding 21 years subject to consent of the Minister for Lands.

2.         Subject to recommendation 1 being implemented, resolves to enter into a lease, subject to the consent of the Minister for Lands, with Vasse Community Garden Inc (ABN 72 744 783 620) for a portion of Lot 505 on Deposited Plan 57391, Volume LR3159 Folio 873, Vasse as shown outlined blue on Attachment B, on the following terms and conditions:

(a)       The term of the lease to be 5 years with a 5 year option;

(b)       The rent to commence at $240.00 inclusive of GST per annum and increased by $5.00 on each anniversary;

(c)       A requirement for the Tenant establish and maintain a contingency fund for the purpose of asset management and capital improvements to the Premises; and

(d)       all costs associated with the preparation of the lease are to be met by the Tenant.

3.         Subject to recommendation 1 being implemented, resolves to enter into a lease, subject to the consent of the Minister for Lands, with Vasse and Districts Community Centre Inc (ABN 13 603 005 663) for a portion of Lot 505 on Deposited Plan 57391, Volume LR3159 Folio 873, Vasse as shown outlined red on Attachment C, on the following terms and conditions:

(a)       The term of the lease to be 5 years with a 5 year option;

(b)       The rent to commence at $240.00 inclusive of GST per annum and increased by $5.00 on each anniversary;

 

(c)       A requirement for the Tenant establish and maintain a contingency fund for the purpose of asset management and capital improvements to the Premises, and

(d)       all costs associated with the preparation of the lease are to be met by the Tenant.

CARRIED 7/0

En Bloc

 

OFFICER RECOMMENDATION

That the Council:

1.         Endorse the excision of Lot 505, Deposited Plan 57391 from Crown Reserve 48251 for the creation of a new reserve designated for the purpose of “Recreation Trail, Recreation and Community” with power to lease or licence for any term not exceeding 21 years subject to consent of the Minister for Lands.

2.         Subject to recommendation 1 being implemented, resolves to enter into a lease, subject to the consent of the Minister for Lands, with Vasse Community Garden Inc (ABN 72 744 783 620) for a portion of Lot 505 on Deposited Plan 57391, Volume LR3159 Folio 873, Vasse as shown outlined blue on Attachment B, on the following terms and conditions:

(a)       The term of the lease to be 5 years with a 5 year option;

(b)       The rent to commence at $240.00 inclusive of GST per annum and increased by $5.00 on each anniversary;

(c)       A requirement for the Tenant establish and maintain a contingency fund for the purpose of asset management and capital improvements to the Premises; and

(d)       all costs associated with the preparation of the lease are to be met by the Tenant.

3.         Subject to recommendation 1 being implemented, resolves to enter into a lease, subject to the consent of the Minister for Lands, with Vasse and Districts Community Centre Inc (ABN 13 603 005 663) for a portion of Lot 505 on Deposited Plan 57391, Volume LR3159 Folio 873, Vasse as shown outlined red on Attachment C, on the following terms and conditions:

(a)       The term of the lease to be 5 years with a 5 year option;

(b)       The rent to commence at $240.00 inclusive of GST per annum and increased by $5.00 on each anniversary;

(c)       A requirement for the Tenant establish and maintain a contingency fund for the purpose of asset management and capital improvements to the Premises, and

(d)       all costs associated with the preparation of the lease are to be met by the Tenant.

EXECUTIVE SUMMARY

Vasse Community Garden Inc. (VCG) wish to establish a community garden in the suburb of Vasse. Lot 505, Deposited Plan 57391 (Lot 505) on part Reserve 48251 has been identified as the preferred site. Lot 505 is between the Buayanyup River Drain and Northerly Street, Vasse.  Additionally, Vasse & Districts Community Centre Inc (VDCC) have submitted a request to construct a shed for storage purposes and a meeting space on Lot 505.

 

To facilitate the VCG and VDCC requests a new management order is necessary.  This report recommends that the Council endorse the excision of Lot 505 for the creation of a new reserve and to enter into leases with VCG and VDCC.


BACKGROUND

Land Tenure

Reserve 48251 (the Reserve) is crown land, set aside for ‘Recreational Trail’ and is vested to the City of Busselton.  The Reserve once formed part of a railway that ran from Busselton to Flinders Bay which closed in 1957.  

 

The Reserve is bisected by the Wadandi Track, formerly known as the Rails to Trails.  The Council adopted policy for the Rails to Trails states that the Rails to Trails be retained as crown land and managed for the primary purpose of ‘recreation trail’. 

 

The Reserve contains a number of lots located between Vasse and Metricup. Lot 505, the subject of this report, is part of the Reserve. Under the management order the City has power to licence not exceeding 10 years, subject to the consent of the Minister for Lands.    

 

In early 2021, City officers sought informal feedback from Department of Planning, Lands and Heritage (DPLH) about proposals to lease sites within the Reserve to local stakeholders.  The objective being to identify locations for VCG and other community facilities. The advice given at the time was that the City should prepare a concept plan of the proposal and provide justification as to why the community groups needed a lease rather than a licence.

 

Vasse Community Garden

In late 2019, the Hanson Group sought expressions of interest from local residents to establish a committee for a community garden in Vasse.   This lead to the formation of VCG.   The Vasse Joint Venture (VJV) have offered financial support to VCG for the construction of the community garden. Part Lot 505 was identified by VCG and the VJV as the preferred location for the community gardens.

 

In September 2021, City Officers briefed Council on the proposal. Council indicated their support of the concept plan on Lot 505 as shown on Attachment A, subject to DPLH agreement.   

 

Bowling green

In approximately 2003, an informal bowling green was established on Lot 505 by local residents.   This was removed during the development of the Vasse Village and subsequently relocated by the developers to its current position in 2016.  The users of the green operate under VDCC. 

 

Due to the land tenure restrictions, there is currently no lease with VDCC.  Instead the City entered into a Memorandum of Understanding with VDCC for maintenance of the greens, fencing and lighting.  VDCC currently store equipment to maintain the greens in a shed on an adjoining land owner’s property. This arrangement is not permanent and VDCC have sought permission from the City to construct a shed on Lot 505 adjacent to the bowling green.                   

OFFICER COMMENT

Lot 505 is centrally located within the Vasse Newtown Estate subdivision. It is proposed that Lot 505  is excised from the Reserve and that a new reserve be created for the purpose of “Recreation Trail, Recreation and Community”, with power to lease or licence for any term not exceeding 21 years subject to the consent of the Minister for Lands. The power to lease will allow the City to provide exclusive possession to prospective tenants.

 

The proposed amendment will maintain the protection of the Wadandi Track whilst supporting the use of Lot 505 by community and sporting groups. 

 

 

Vasse Community Gardens

Officers support a community garden in Vasse and VCG wish to progress the development of the community gardens.  Concept plans have been prepared by Emerge Associates on behalf of the VJV and VCG. The concept includes:

·        the installation of a clubhouse with a universal ablution and storage area totaling approximately 78m2;

·        a communal BBQ and outdoor kitchen area;

·        several raised planters; and

·        a sand pit play area, water tank and wash down area.  

 

The concept also provides for future staged development. The final designs will be subject to development approval. 

 

Officers recommend that Council enter into a lease with VCG for a term of 5 years with a further 5 year option. This is consistent with the term of lease offered to both Dunsborough Community Garden Inc. and Busselton Community Garden Inc in the past.  It is proposed to include the land for stage 1 and stage 2, both on the northern side of the Wadandi Track, as shown outlined blue in Attachment B. It is also recommended that a non-exclusive licence be granted over the carpark area and access way.

 

Bowling Club

It is proposed that the City enter into a lease with VDCC for the existing green and provide additional land to allow the club to construct a shed for storage purpose and a meeting space. The construction of the shed will be subject to planning and building approvals being obtained.  The proposed leased area is approximately 835m² and shown outlined red on Attachment C.

 

Land Tenure / Lease Terms

Subject to the changes being made to the land tenure, it is recommended that Council enter into lease agreements with both the VCG and VDCC for a term of 5 years with a further 5 year option.  The leases to commence within 3 months of the new management order being issued.

 

The annual rent for community and sporting group leases, as at 30 June 2022, is $240.00 inclusive of GST.  The rent is then increased by $5.00 inclusive of GST per annum.

 

Given the town centre location, it is important that the buildings and infrastructure are maintained to a high standard. It is therefore recommended that the leases require the VCG and VDCC to establish and maintain a trust account as a contingency fund for the purpose of making necessary capital improvements to their premises and complying with their maintenance obligations.  It is proposed that an agreed amount be set aside each year, commencing in the third year of the lease. This allows the newly formed VCG time to generate funds to meet this obligation, noting that the infrastructure is unlikely to require any significant works in the first couple of years.

 

The concept plan provided by the VJV also included a provision for a bush food garden which is proposed to be led and managed by the Undalup Association.  This is still in early planning stages, therefore it is proposed that the City enter into an agreement at a later date.

 


Statutory Environment

Pursuant to section 46 of the Land Administration Act 1997 (LAA), the Minister for Lands may, with the consent of the management body vary any condition to which the care, control and management of the reserve is subject.

 

When disposing of property whether by sale, lease or other means, a local government is bound by section 3.58 of the LGA. A disposition of property is exempt from the requirements of s 3.58 of the LGA if it is a disposition of land to a body (incorporated or not) with objects that are of a charitable, benevolent, religious, cultural, educational, recreational, sporting or other like nature and where the members of which are not entitled to receive any pecuniary profit from the body’s transactions (reg 30(2)(b) of the Local Government (Functions & General) Regulations 1996). The exemption applies to VCG and VDCC.

 

Section 18 of the LAA requires the approval of the Minister for Lands for a lease on a Crown Reserve. Additionally, the lease is to be lodged with Landgate in accordance with the Transfer of Land Act 1893.

 

Relevant Plans and Policies

The recommendation to enter into a lease with the VCG and VDCC is consistent with the principles of the Leasing of City Premises policy adopted by Council on 13 May 2020. 

 

Financial Implications

There are no financial implications associated with entering into a lease with the VCG or VDCC.   The leases will include requirements for the tenants to pay outgoings including services and insurance as well as meet the costs of maintenance and repair of the Premises, including structural repairs.

 

Stakeholder Consultation

The City has sought feedback from the DPLH in respect to the tenure of the land.   Consultation has been undertaken with the community and the VJV in respect to the original concept plans for gardens. 

 

A proposed amendment to the Vasse Village Precinct Structure Plan was recently advertised for public comment.  One of the amendments is to include the provision for community garden and community uses in the public spaces on Lot 505. 

 

Risk Assessment

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

 

Options

As an alternative to the proposed recommendation the Council could:

1.         not enter into leases with either or both of the VCG or VDCC;

2.         enter into leases of shorter or longer duration (however not exceeding 21 years).

CONCLUSION

The creation of a new reserve for Lot 505 and entering into leases with the VCG and VDCC as outlined in this report would enable the City to support appropriate community based infrastructure and activities in an area that is undergoing extensive change and population growth.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The City will enter into the leases with VCG and VDCC within three months of the receipt of the new Management Order for Lot 505.

 


Council

69

22 June 2022

16.1

Attachment a

Vasse Community Garden Concept Plan 2020

 


Council

70

22 June 2022

16.1

Attachment b

Vasse Community Garden Proposed Leased Premises

 


Council

71

22 June 2022

16.1

Attachment c

Vasse & District Community Centre Proposed Leased Premises

 


Council                                                                                      79                                                                      22 June 2022

16.2           EXPRESSION OF INTEREST TO LEASE CAMPSITE 7 LOCKE ESTATE

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

Locke Estate

BUSINESS UNIT

Corporate Services

REPORTING OFFICER

Property Management Officer - Julie Oates

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

Simple Majority

ATTACHMENTS

Attachment a   Campsite 7 Plan  

 

The Officer Recommendation was moved and carried.

 

COUNCIL DECISION

C2206/164              Moved Councillor P Carter, seconded Councillor M Love

That the Council:

1.         Enter into a lease with the South-West Aboriginal Medical Service Aboriginal Corporation subject to the consent of the Minister for Lands for the occupation of a portion of Reserve 22674, Lot 5303, Deposited Plan 220583; Volume LR3088, Folio 423, Caves Road, Siesta park as indicated in Attachment A, on the following terms and conditions;

(a)       The term of the lease commencing no later than 1 October 2022 and expiring on 30 November 2032;

(b)       The annual rent to commence at $2,500.00 plus GST with annual rent increase of CPI or 3% whichever is greater;

(c)       For up to the first 6 years of the term of the lease the lessee is required to pay Council $4,000 per annum to be placed in an interest bearing Reserve for future coastal works adjoining the Locke Estate;

(d)       The lease being consistent with the City’s standard Locke Estate Lease Agreement; and

(e)       All costs for the preparation of the lease to be met by the Lessee.

CARRIED 7/0

En Bloc

 

OFFICER RECOMMENDATION

That the Council:

1.         Enter into a lease with the South-West Aboriginal Medical Service Aboriginal Corporation subject to the consent of the Minister for Lands for the occupation of a portion of Reserve 22674, Lot 5303, Deposited Plan 220583; Volume LR3088, Folio 423, Caves Road, Siesta park as indicated in Attachment A, on the following terms and conditions;

(a)       The term of the lease commencing no later than 1 October 2022 and expiring on 30 November 2032;

(b)       The annual rent to commence at $2,500.00 plus GST with annual rent increase of CPI or 3% whichever is greater;

(c)       For up to the first 6 years of the term of the lease the lessee is required to pay Council $4,000 per annum to be placed in an interest bearing Reserve for future coastal works adjoining the Locke Estate;

(d)       The lease being consistent with the City’s standard Locke Estate Lease Agreement; and

(e)       All costs for the preparation of the lease to be met by the Lessee.

 

EXECUTIVE SUMMARY

The City of Busselton invited expressions of interest for Campsite 7 at the Locke Estate. A total of four submissions were received. This report provides the outcome of the evaluation and recommends that the Council enter into a lease with South-West Aboriginal Medical Service Aboriginal Corporation for Campsite 7 at the Locke Estate.

BACKGROUND

Reserve 22674, Lot 5303, Caves Road, Siesta Park, also known as the Locke Estate, is an 'A class' crown reserve vested with the City of Busselton (City) for the designated purpose of ‘Recreational Camp Sites and Group Holiday Accommodation’.

 

The Locke Estate consists of 16 campsites. Fourteen of the campsites are currently leased and operated by various not-for-profit organisations. Campsites 7 and 16 are vacant.

 

In 2020 Nurture Works Foundation Inc. surrendered the lease of Campsite 7 having held the lease since 1 April 2014. Despite holding the lease for six years Nurture Works Foundation Inc. were unable to develop the campsite. As a consequence the campsite is vacant with no existing infrastructure.

 

Expressions of interest for Campsite 7 were advertised on two occasions in 2021 and on each occasion no suitable proponent was found.

 

Applications to lease a Locke Estate site are assessed against a set of detailed selection criteria designed to assess a prospective lessees’ ability to meet the lease purpose and terms relevant to the Locke Estate campsite. The selection criteria were reviewed in 2015 (C1506/155).

 

The three essential compliance criteria for Locke Estate leases are as follows:

 

1.            All future lessees are required to be a ‘not for profit’ incorporated body with either charitable, religious, cultural, recreational, sporting or other benevolent like nature objectives, and their constitution must prohibit members of the  organisations  being  entitled or permitted to receive a pecuniary profit from the organisation.

2.            Any proposal for use of the site by a future lessee must meet one or more of the following purposes:

(i)            Groups participating in organised educational, cultural, religious or recreational activities; and/or

(ii)           Financially disadvantaged persons who are otherwise not able to afford a holiday; and/or

(iii)          Individuals or families requiring respite.

With the exception of the provision of temporary accommodation for people involved with or contracted to manage, improve and/or maintain the site, short stay holiday accommodation must not be made available to the general public.

 

3.            If a development proposal is part of the submission it must be generally capable of being carried out given site constraints and requirement; including coastal setbacks and environment constraints etc.

 

The review also made recommendations on weighted selection criteria to be used in the assessment of submissions. These criteria are:

·        Organisation’s Activities and Purpose (40%)

·        Proposed Development and Use of the Site (30%); and

·        Organisation’s Management and Financial Capability (30%).

 

The essential compliance criteria and weighted selection criteria have been used for the assessment of the current expressions of interest.

OFFICER COMMENT

The Expression of Interest (EOI) for Campsite 7 opened on 12 January 2022 with a closing date of 30 March 2022. It was advertised on the City of Busselton website, City of Busselton Facebook page and in the Busselton Dunsborough Mail. On request by a proponent the closing date was extended to 1 April 2022.

 

A total of 4 submissions were received from the following entities:

1.         Australian Post-Tel Institute (Western Australia) Incorporated (API WA)

2.         Perth Central Christadelphian Ecclesia Inc. (Christadelphians)

3.         South-West Aboriginal Medical Service Aboriginal Corporation (SWAMS)

4.         The Yarning Circle Aboriginal Corporation (Yarning Circle)

 

A summary of each proposal is provided below:

 

Proponent

Summary of Proposal

API WA

API WA are a membership club providing educational and recreational activities, respite and short term accommodation to its members. API WA have proposed to use Campsite 7 for providing accommodation to seniors, people with a disability or people seeking respite. The submission had an underlying tourism focus.

 

API WA have a membership base of 2,600 with an expected 500 members per year using the proposed 10 eco-tents. The submission indicated that API WA would offer programs to bring groups of people together but did not provide significant detail about these programs.

 

The API WA proposal included a basic concept plan of a development consisting of 10 eco tents however it was not site specific and they detailed a process for design development. API WA intends to partner with a Fremantle based eco-structures team that have delivered similar projects on Rottnest Island. The submission does not detail any development costs.

 

Day to day management of the campsite would be by the existing experienced South West Regional Manager supported by an administration and management team. API WA have provided detailed information of demonstrated experience managing accommodation facilities (particularly holiday homes). The submission does not detail how the development will be funded but the organisations financial statements indicate that substantial funds are available.

 


 

Christadelphians

Christadelphians are a Christian group which developed in the nineteenth century and has had a presence in Western Australia since the 1890s. Campsite 7 is proposed to be used by the Christadelphians as a campsite and facility for groups participating in organised educational, cultural, and recreational activities. Christadelphians have also proposed to open the campsite up to the general public for incidental use noting that short stay accommodation to the public would be necessary for the sustainable operation of the site.

 

Programs such as school camps, Sunday school and similar would be run at the campsite. The facility would be open to Christadelphian members as well as non-members such as schools and other educational, cultural and religious groups. The campsite would also be made available as overflow accommodation for other Locke Estate campsites.

 

Stage 1 of the proposed development consists of communal facilities, 80 dormitory beds, 40 tent sites and landscaping. With an estimated cost of $700,000 – $800,000. Christadelphians has funds to deliver stage 1 within 3 years. Stage 2 includes an additional 100 beds costing $800,000 - $900,000. Stage 2 would take place over a three to fifteen year period. The submission indicates a sizeable development is required to cater to their needs and programs. Consequently they are proposing that the development extend into the conservation zone.

 

The campsite is proposed to be operated by the Christadelphian community members and affiliated organisations. The ongoing maintenance and management of the campsite includes potentially engaging a contractor to provide basic services in addition to the work of volunteers and members. Christadelphians have nominated a project management team to progress the development supported by their membership.

 

In addition to addressing the selection criteria Christadelphians requested departures from the standard Locke Estate leasing terms including:

·        Minimum 21 year lease term (compared to the approximately 10 years currently offered);

·        Modifications to the conservation zone to increase the size of the development zone;

·        Permitting public usage of the campsite for temporary accommodation incidental to the primary use;

·        Allowing caravans; and

·        Reduction in rent to $800 per annum with no rent reviews.

 

SWAMS

SWAMS is a Noongar Community Controlled Health Organisation registered in 1997 for the provision of health and community services. SWAMS have proposed to use Campsite 7 as a culturally safe space to deliver social, emotional and physical health programs. SWAMS provided a detailed list of programs they propose to offer from the campsite including youth camps, elders groups, men’s and women’s groups, cultural immersion and health related programs.

 

SWAMS proposed development includes a common area building hub (dining, ablutions etc.), family units, dorm buildings, caretaker’s residence and a fire pit. Development will not occur in either the conservation or coastal zones. The proposed buildings will meet BAL29 and the building materials have been chosen for ease of rehabilitation of the campsite if vacated.

They have indicated an intent to use solar and sustainable energy options and also to undertake revegetation beyond what is required.

 

SWAMS have not specified costings of their proposed development or expected ongoing costs, however they provided detailed information about financial viability and access to funding streams. Whilst the submission indicates they intend to fund the development from external funding sources they have confirmed that if necessary they will be able to fund the development from existing assets. 

 

SWAMS is a large well-resourced organisation with over 140 staff. A team of senior management is proposed to manage the development. SWAMS demonstrated experience in setting up new clinical services across the south west region.

 

Yarning Circle

Yarning Circle is an Aboriginal Corporation established in December 2021 for the purpose of providing information, support and care to Aboriginal people affected by the events of the Stolen Generation.

 

The Yarning Circle proposal included a very basic concept for the development of the site including eco-tents and a conference centre. Limited to no information was provided about the Yarning Circle’s management and financial capabilities.

 

 

Assessment Process

 

In accordance with the EOI documentation and the City’s evaluation procedures, assessments were carried out by an evaluation panel comprising three City officers with relevant skills and experience. The assessment process included:

(a)       Assessing submissions received against relevant compliance criteria. The compliance criteria were not point scored. Each submission was assessed on a Yes/No basis as to whether each criterion was satisfactorily met; and

(b)       Assessing submissions received against the weighted assessment criteria below:

 

Criteria

Weighting

Organisation’s activities and purpose

40%

Proposed development and use of the site

30%

Organisation’s management and financial capability

30%

 

The panel members individually assessed the qualitative criteria, then met and applied an average to provide a final ranking.

 

Summary of Assessment Outcomes

API WA

API WA provided a generally sound proposal. The organisation, its activities and purpose had some alignment with the prescribed use of the Locke Estate however the evaluation panel was concerned about the focus on providing accommodation in the tourism sector. The proposed development appeared sympathetic to the natural environment and achievable but it lacked sufficient detail and was not specific to the site. API WA were otherwise able to demonstrate a good understanding of the development requirements (including bushfire risk) and the obligations under the lease for the site. API WA appear to be well funded and managed. They appear capable of implementing a development on the campsite.

 

Christadelphians

Christadelphians provided a comprehensive and detailed submission. Their objectives and activities are generally well aligned and consistent with the permitted use of Locke Estate leases. They were able to demonstrate a strong understanding of the development requirements and lease. It was evident that the Christadelphians had carried out a very high level of due diligence. They have also demonstrated that they are well funded and capable of implementing a development on the campsite.

 

Overall whilst a detailed and comprehensive submission was provided by Christadelphians the evaluation panel were concerned about the Christadelphians required variations to the standard lease. In particular:

·        Providing a 21 year lease term would mean the expiry date for Campsite 7 would no longer be aligned with the other campsites. All Locke Estate campsite leases currently expire on the 30 November 2032.

·        Encroaching into the conservation zone with proposed development demonstrated limited understanding of the significance of the conservation values attached to the Locke Estate ‘A’ Class Reserve. The encroachment would impact on the natural habitat for the critically endangered Western Ringtail possum. Allowing removal of vegetation in the conservation zone is not consistent with other leases and may set an undesirable precedent.

·        Public usage of the campsite for temporary accommodation incidental to the primary use and allowing caravanning is not consistent with the terms of the lease or the strategic direction set by Council.

 

SWAMS

SWAMS provided a comprehensive submission. The activities and purpose of SWAMS aligned strongly with the permitted use for the campsite and will have a wide community benefit. SWAMS also had strong demonstrated experience running programs and good management indicating that programs could be effectively rolled out at the campsite. The proposed development is considerate to the existing environment and achievable. They demonstrated an understanding of the planning and building requirements including those related to bushfire management. SWAMS are a well-funded organisation with good access to external funding opportunities. Furthermore SWAMS were able to demonstrate that they have excellent management, staff resources and finances to build and facilitate the ongoing maintenance of the proposed development and the campsite. Overall the SWAMS submission was considered to be very strong.

 

Yarning Circle

The Yarning Circle submission lacked detail in a number of significant areas. Whilst the organisational purpose is aligned with the intended use of the Locke Estate, the submission failed to provide any detail of programs to be offered form the campsite. Only basic information was provided about the development and use of the site. The proposed development appeared to be sympathetic to the environment and limited only to the development zone. However insufficient information was provided to allow a detailed assessment. As a newly established corporation they were unable to adequately demonstrate management capability or financial ability.

 


Evaluation panel recommendation

As a result of the evaluation the proposals ranked as follows.

Rank

Proponent

1

SWAMS

2

Christadelphians

3

API WA

4

Yarning Circle

 

SWAMS as the highest ranked proposal were able to demonstrate:

·        Purpose and programs that align with the strategic intent of lease

·        Purpose and programs that align with the City’s Strategic Plan

·        A track record for providing and running programs

·        A development that is considerate of the existing environment

·        An ability to fund development of the campsite either through existing funds or via external funding opportunities

·        Previous operating success, management capability and organisational support

·        A wide community benefit to their proposed use of the campsite

 

This evaluation panel recommends that the Council enter into a lease with SWAMS for Campsite 7 at Locke Estate.

 

Proposed Lease terms and conditions

The proposed lease terms and conditions are to be consistent with the City’s standard Locke Estate Lease Agreement and include the following:

·        a term of approximately 10 years expiring on the 30 November 2032;

·        an annual rent to commence at $2,500.00 plus GST with annual rent increase of CPI or 3% whichever is greater;

·        a requirement to pay an annual coastal protection contribution of $4,000 for the first 6 years or a lesser amount if determined by the City; and

·        that the lessee is to submit a development application within 12 months of the commencement date and complete the works specified in the development approval within 3 years from the commencement date or such longer period as the City, acting reasonably agrees to.

 

Statutory Environment

Section 3.58 of the Local Government Act 1995 (LGA) sets out the process for how a local government can dispose of property.

 

Exemptions exist to the processes outlined in s 3.58 of the LGA. Relevantly reg 30(2)(b) of the Local Government (Functions & General) Regulations 1996 states that if land is disposed to a body (incorporated or not) with the objects that are of a charitable, benevolent, religious, cultural, educational, recreational, sporting or other like nature and where the members of which are not entitled or permitted to receive any pecuniary profit from the body’s transactions it will be excluded from the application of s 3.58 of the LGA.

 

Section 18 of the Land Administration Act 1997 requires the approval of the Minister for Lands for a lease on a crown reserve.

 

Relevant Plans and Policies

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

 

Financial Implications

Rent will commence at $2,500 per annum plus GST with annual rent increases of CPI or 3%, whichever is greater. A contribution of $4,000 per annum from the Lessee for coastal protection works for up to a maximum of 6 years is also required and will be transferred to the Locke Estate Reserve.

 

Stakeholder Consultation

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

 

Risk Assessment

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 offer a lease to the recommended proponent and instead choose another proponent.

2.         Resolve not to offer a lease to any of the proponents.

CONCLUSION

The evaluation panel recommends that the Council enter into a lease with SWAMS for Campsite 7 at Locke Estate on the terms outlined in this report.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

It is anticipated that the signing of the lease agreement would be on or before 1 October 2022. SWAMS would be required to submit a development application within 12 months of the commencement date and commence significant building works within 3 years.


Council

80

22 June 2022

16.2

Attachment a

Campsite 7 Plan

 


Council                                                                                      83                                                                      22 June 2022

16.3           DEFERRAL OF NEW COUNCIL MEETING SCHEDULE TO COMMENCE AUGUST 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

Council Meetings

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

Nil

 

The Officer Recommendation was moved and carried.

 

COUNCIL DECISION

C2206/165              Moved Councillor P Carter, seconded Councillor M Love

That the Council

1.    Agrees to defer until August 2022 commencement of the trial of an alternative meeting scheduled resolved by Council on 27 April 2022 (C2204/084); and

2.    Adopts the following amended dates for the Ordinary Meetings of Council from July to December 2022:

·   27 July

·   17 August

·   21 September

·   19 October

·   16 November

·   21 December.

3.    Adopts an amended date for the July Finance Committee meeting of 20 July (as opposed to the 6 July) and an amended date for the July Policy and Legislation Meeting of 27 July (also as opposed to 6 July).

CARRIED 7/0

En Bloc

 

OFFICER RECOMMENDATION

That the Council

1.    Agrees to defer until August 2022 commencement of the trial of an alternative meeting scheduled resolved by Council on 27 April 2022 (C2204/084); and

2.    Adopts the following amended dates for the Ordinary Meetings of Council from July to December 2022:

·    27 July

·    17 August

·    21 September

·    19 October

·    16 November

·    21 December.

3.    Adopts an amended date for the July Finance Committee meeting of 20 July (as opposed to the 6 July) and an amended date for the July Policy and Legislation Meeting of 27 July (also as opposed to 6 July).

EXECUTIVE SUMMARY

Council resolved on 27 April 2022 (C2204/084) to trial an alternative meeting schedule for the Ordinary Meetings of Council for Council for the period July through to December 2022, along with changes to the scheduling of Agenda Briefings and Community Access Sessions (CAS). 

 

This report seeks Council approval to defer commencement of the trial to August 2022 in order that Council can maintain its previous recess dates of 23 June to 18 July 2022, for which three Councillors, including the Mayor and Deputy Mayor, have arrangements which prevent them from attending for the commencement in July.

BACKGROUND

In an effort to streamline the City’s decision making practices and reduce both the administrative functions associated with meeting processes and the in person demands on Councillors, officers proposed, and Council resolved, to trial moving from two to one Ordinary Meetings of Council per month. 

 

Under the new arrangements, a Community Access Session would be held on the first Wednesday of each month, an agenda brief followed by a public presentations session (for community members with a relevant interest on current agenda items) on the second Wednesday and an agenda brief and Council meeting on the third Wednesday.   The fourth Wednesday of each month will generally be an attendance free week, along with any fifth Wednesday.

 

Finance Committee meetings will be held once a month, on the first Wednesday of each month, with Policy and Legislation Committee meetings held bi-monthly, also on the first Wednesday of each month.

 

In order to facilitate the trial, an adjustment of the Councillors mid-year recess was noted, with Councillors returning from recess 5 July instead of 17 July.  It has however come to the attention of officers that three Councillors will be away in the first half of July, including the Mayor and Deputy Mayor.  As such a deferral of the commencement of the trial is proposed.

OFFICER COMMENT

Deferring the commencement of the new Council schedule will ensure all Councillors can attend the July Council meeting, and that the Mayor and / or Deputy Mayor are available to chair the meeting.  It will also allow Councillors to have a longer recess, as originally scheduled from 23 June to 17 July. 

 

The Policy and Legislation Committee and Finance Committee meetings set for 6 July would change to 20 July for the Finance Committee and 27 July for the Policy and Legislation Committee.  It is proposed that Council adopt these new dates as opposed to the Committees adopting them under delegation. 

 

 

 

 

Statutory Environment

Pursuant to section 5.3 of the Local Government Act (Act), a Council must hold Ordinary Meetings and may hold Special Meetings of Council. Ordinary Meetings of Council must be held no more than three months apart (as per section 5.3(2) of the Act).

 

Regulation 12 of the Local Government (Administration) Regulations 1996 (the Regulations) requires a local government to, at least once per year, give local public notice of the dates on which, and the time and place at which, Ordinary Meetings of Council are to be held for the following 12 months.

 

Relevant Plans and Policies

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

 

Financial Implications

There are no financial implications associated with the officer recommendation.

 

Stakeholder Consultation

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

 

Risk Assessment

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

 

Options

As an alternative to the proposed recommendation the Council could choose to commence the trial in July as previously resolved.  For the reasons outlined in the report this is not recommended.

CONCLUSION

Officers are proposing that Council defer until August the commencement of the alternative meeting schedule adopted at its meeting on 27 April 2022.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

If endorsed by Council, the change will be advertised as per the Regulations.


Council                                                                                      87                                                                      22 June 2022

17.1           COUNCILLORS' INFORMATION BULLETIN

STRATEGIC THEME

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

STRATEGIC PRIORITY

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

SUBJECT INDEX

Councillors' Information Bulletin

BUSINESS UNIT

Executive Services

REPORTING OFFICER

Reporting Officers - Various

AUTHORISING OFFICER

Chief Executive Officer - Mike Archer

NATURE OF DECISION

Noting: The item is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Community Assistance Program - Round Five

Attachment b    Letter from the Office of the Director General  

 

The Officer Recommendation was moved and carried.

 

COUNCIL DECISION

C2206/166              Moved Councillor P Carter, seconded Councillor M Love

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

17.1.1          Minor Donations Program

17.1.2          Community Assistance Program

17.1.3          Current Active Tenders

17.1.4         Letter from the Office of the Director General

CARRIED 7/0

En Bloc

 

OFFICER RECOMMENDATION

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

17.1.1          Minor Donations Program

17.1.2          Community Assistance Program

17.1.3          Current Active Tenders

17.1.4         Letter from the Office of the Director General

 

EXECUTIVE SUMMARY

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

 

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


INFORMATION BULLETIN

17.1.1       Minor Donations Program – May 2022

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

 

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

 

Three applications were approved in May 2022, totaling $2,060, as outlines below:

 

Recipient

Purpose

Amount

Busselton Hospice Care

Assistance to cover the cost of the ‘Coming Together Again’ morning tea for the Hospice Volunteers during Volunteer Week.

 

$500

Busselton Dunsborough Alliance Against Depression

Assistance to cover the cost of hiring the Undalup Room for ‘The Road to Resilience’ community forum, with Adam Przytula, founder of ‘Armed For Life’, a social enterprise to help children, teenagers and adults develop resilience and increase their well-being and mental health.

 

$560

Dunsborough Community Garden

Contribution towards the costs of purchasing new gardening equipment to support the Garden Volunteers and Members.

 

$1,000

May Total

 

$2,060

17.1.2       Community Assistance Program

Attachment A outlines the applications received and funded in Round Five of the Community Assistance Program.

 

17.1.3       Current Active Tenders

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

 

EOI 01/21 SOUTH WEST REGIONAL WASTE MANAGEMENT SERVICES

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

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

·        12 submissions were received. 

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

 


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

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

·        A request for tender was advertised on 22 December 2021 and closed on 25 January 2022.

·        3 submissions were received. 

·        An evaluation panel is reviewing the submissions.

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

 

RFT 02/22 EXTERNAL CLEANING CONTRACT

·        Requirements – regular cleaning services to the City’s ablution blocks and BBQs.

·        A request for tender was advertised on 23 March 2022, closing on 21 April 2022.

·        Four submissions were received.

·        It is intended that a report to Council for a decision on the tender will be presented to Council at its meeting on 22 June 2022. 

 

RFT 04/22 DIGITAL BILLBOARD

·        Requirements – a suitable supplier to design and construct a digital billboard on Bussell Hwy.

·        A request for tender was advertised on 23 March 2022, closing on 27 April 2022.

·        Nine submissions were received and are currently being assessed.

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

 

RFT 05/22 AIRPORT – CARPARK EXPANSION

·        Requirements – a suitable supplier to construct a new carpark at Busselton Margaret River Airport. 

·        A request for tender was advertised on 4 June 2022, closing on 28 June 2022. 

·        The value of the contract is expected to exceed the CEO’s delegated power for accepting tenders.

 

PQS 01/22 TRAFFIC MANAGEMENT SERVICES

·        Requirements – a panel of pre-qualified suppliers to supply the City’s ongoing traffic management services.

·        A request for applications was advertised on 28 May 2022, closing on 16 June 2022.

·        The CEO has delegated power to appoint contractors to panels of pre-qualified suppliers.

 

PQS 02/22 SUPPLY AND DELIVERY OF PRE-MIXED CONCRETE

·        Requirements – a panel of pre-qualified suppliers to supply the City’s ongoing requirements for pre-mixed concrete. 

·        A request for applications was advertised on 11 June 2022, closing on 7 July 2022.

·        The CEO has delegated power to appoint contractors to panels of pre-qualified suppliers.


17.1.4       Letter from the Office of the Director General

This letter is from Emily Roper, Director General to inform the City that the WA Government is encouraging more nominations for the Order of Australia Awards. Included with the letter was a bundle of business cards and brochures promoting the Awards, and these were distributed amongst City staff and to the Libraries.

 

See Attachment B.

 


Council

92

22 June 2022

17.1

Attachment a

Community Assistance Program - Round Five

 






Council

94

22 June 2022

17.1

Attachment b

Letter from the Office of the Director General

 


 

 


Council                                                                                      97                                                                      22 June 2022

items to be dealt with by separate resolution (without debate)

12.3           Finance Committee - 8/6/2022 - BUDGET AMENDMENT REQUEST - LOWER VASSE RIVER SEDIMENT REMOVAL PROJECT 

STRATEGIC THEME

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

STRATEGIC PRIORITY

1.3 Work with key partners to improve the health of the Vasse River and other waterways in the Geographe catchment.

SUBJECT INDEX

Water Quality

BUSINESS UNIT

Environmental Services

REPORTING OFFICER

Senior Sustainability/Environment Officer - Mathilde Breton

AUTHORISING OFFICER

Director, Planning and Development Services - Paul Needham

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 Finance Committee at its meeting on 8/6/2022, the recommendations from which have been considered by Council.

 

The Committee Recommendation was moved and carried.

 

COUNCIL DECISION

C2206/167              Moved Councillor S Riccelli, seconded Councillor J Richards

That the Council endorse the following budget amendment, transferring the budget for Lower Vasse River Sediment Removal from the capital to operating budgets, to better align the budget with relevant accounting standards -

Cost code description

Account string

Current budgeted expenditure

Amended budgeted expenditure

Impact on budgeted net position

Vasse River – ongoing restoration of river habitat

C3243

$640,000

Nil

$640,000

Sustainability - Contractors

400-10801-3280-0000

Nil

$640,000

($640,000)

Overall

NA

$640,000

$640,000

Nil

CARRIED 7/0

by absolute majority

 


OFFICER RECOMMENDATION

That the Council endorse the following budget amendment, transferring the budget for Lower Vasse River Sediment Removal from the capital to operating budgets, to better align the budget with relevant accounting standards –

Cost code description

Account string

Current budgeted expenditure

Amended budgeted expenditure

Impact on budgeted net position

Vasse River – ongoing restoration of river habitat

C3243

$640,000

Nil

$640,000

Sustainability - Contractors

400-10801-3280-0000

Nil

$640,000

($640,000)

Overall

NA

$640,000

$640,000

Nil

 

EXECUTIVE SUMMARY

The Council is asked to support a budget amendment to align with relevant accounting standards, but which has no impact on the budget bottom line.

BACKGROUND

Consistent with the City’s Long Term Financial Plan, funds were allocated in the City’s 2021/22 capital budget towards Lower Vasse River Restoration. A total of $640,000 was allocated, with $290,000 being funded through a transfer from the newly created Waterways Restoration Reserve and the balance of $350,000 funded from a State Government Grant through the Healthy Estuaries Initiative programme.

 

Consistent with feedback received from the Lower Vasse River Management Advisory Group (LVRMAG) and following the obtaining of all environmental approvals, as well as various procurement processes, those funds are being used for the Stage 1 sediment removal project that commenced in April. It is expected that the full budget should be spent by end June, although there may be a need to relist some spend and associated reserve/restricted asset transfers, should portions of the current project not be complete prior to that time.

 

Since adoption of the 2021/22 budget, however, it has been identified that the expenditure should have been budgeted as operating and not capital expenditure. The nature of the works actually being undertaken this financial year, being sediment removal, does not represent capital spend. The ‘land’ that the River occupies is also Unallocated Crown Land (UCL), neither not owned by the City or subject of a management order granted to the City under the Land Administration Act 1997. As such, the expenditure should be identified as operating and not capital, to align with relevant accounting standards – and an amendment to the budget to reflect that is therefore recommended.

 

It should be noted that the purpose of the Waterways Restoration Reserve allows for both operating and capital spend. The Reserve purpose as identified in the 2021/22 budget is; “To provide for any works required to rejuvenate, revive or rectify natural waterways within the Busselton district”. The proposed budget amendment will not affect the City’s overall budget balance, and nor will it have a significant impact on the City’s financial ratios.

 


Whilst further expenditure on sediment removal would also be operating spend, other spend being contemplated, such as the potential development of treatment wetlands, may be classed as capital spend. It is expected that the strategic direction for future investment in waterways restoration will be subject of further consideration by the LVRMAG and the Council later in 2022.

OFFICER COMMENT

It is necessary for the City to ensure that its finances are managed in a manner consistent with relevant accounting standards, including the correct identification of spend as either capital or operating. Whilst, in many senses, including the nature of the work and scale of investment, the sediment removal project is being run and managed in a manner consistent with a capital project, as the Lower Vasse River is not a City asset in an accounting sense, the sediment removal work cannot be identified as capital expenditure.

 

Statutory Environment

The officer recommendation supports the general function of a local government under the Local Government Act 1995 to provide for the good government of persons in its district. As the recommendation provides for an amendment to the budget, an absolute majority resolution of the Council is required.

 

Relevant Plans and Policies

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

 

Financial Implications

There are no financial implications associated with the officer recommendation.

 

Stakeholder Consultation

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

 

Risk Assessment

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

 

Options

As an alternative to the proposed recommendation the Council could not amend the budget, and instead reconcile the City’s books with relevant accounting standards as part of 2021/22 year end processes. It is seen as preferable to amend the budget prior to year end.

CONCLUSION

It is recommended that the Council support the recommended budget amendment.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The recommendation would be implemented immediately following a Council resolution.  


Council                                                                                      101                                                                    22 June 2022

14.3           BUDGET AMENDMENT - BUSSELTON FORESHORE EAST REDEVELOPMENT

STRATEGIC THEME

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

STRATEGIC PRIORITY

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

SUBJECT INDEX

Budget Amendment - EWS Busselton Foreshore East Redevelopment

BUSINESS UNIT

Major Projects and Facilities

REPORTING OFFICER

Manager Major Projects and Facilities - Eden Shepherd

AUTHORISING OFFICER

Director, Engineering and Works Services - Oliver Darby

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Nil

 

The Officer Recommendation was moved and carried.

 

COUNCIL DECISION

C2206/168              Moved Councillor P Carter, seconded Councillor S Riccelli

That the Council agree to endorse the following budget amendment for the Busselton Foreshore East – Redevelopment project, to cover unanticipated remediation costs and new project design:

Account string

Existing budget

Adjustment

Adjusted budget

Reserve

1.    Busselton Foreshore East – Redevelopment

120 C2237

$351,100

$654,000.00

$1,005,100.00

Waste Management Facility and Plant Reserve

CARRIED 7/0

by absolute majority

 

OFFICER RECOMMENDATION

That the Council agree to endorse the following budget amendment for the Busselton Foreshore East – Redevelopment project, to cover unanticipated remediation costs and new project design:

Account string

Existing budget

Adjustment

Adjusted budget

Reserve

1.     Busselton Foreshore East – Redevelopment

120 C2237

$351,100

$654,000.00

$1,005,100.00

Waste Management Facility and Plant Reserve

 

EXECUTIVE SUMMARY

This report seeks Council approval for a budget amendment for the Busselton Foreshore East Redevelopment project, to cover unanticipated remediation costs associated with the discovery of asbestos containing material.


BACKGROUND

Busselton Foreshore East Redevelopment was identified as part of the extended foreshore upgrade works to the East of Busselton. 

 

The purpose of the redevelopment was to enhance the eastern extension with improved landscaping, parking, footpaths, installed turf, picnic facilities and provide increased capacity of the foreshore and amenities for residents and visitors. 

 

BCP Contractors (BCP) were the successful tenderer/contractor for the project with the contract between BCP and City of Busselton entered into on 1 September 2021. 

OFFICER COMMENT

BCP commenced work at Foreshore Barnard East on 6 September 2021.  On
15 September 2021 the contractor notified the City that potentially contaminated material
(asbestos containing material, (ACM)) was discovered during excavation works for in ground services.  Consequently BCP established test pits which revealed construction rubble with visible fragments of ACM material.

 

Local environmental consultants were engaged to assist with onsite sampling and identification of the material. They identified the presence of ACM on site in quantities that required the City to undertake a managed approach to earthworks.

 

The City was required to initiate consultation with Department of Water and Environmental Regulation (DWER) and the Department of Health (DoH) to determine remediation requirements / approach. The site was classified as contaminated restricted use and DWER and the DoH required the development of a remediation plan and to prepare a Construction Environmental Management Plan (CEMP).

 

Works were interrupted for the entire redesign of project – a new design was developed to cap the contaminated material; environmental assessment and definition of potentially contaminated restricted use material profile; and remediation works.

 

Council briefings occurred 8 October 2021 and the 8 December 2021 informing Council of the issues that had been encountered on the project.  Additional costs forecast at the time of the December briefing were $530,000.

 

Additional works to complete the project and remediate the site included:

·        Hazardous material air monitoring

·        Site security and inductions of asbestos qualified personnel

·        Testing and reporting

·        Environmental consultancy fees

·        Placement of orange protective warning layer to demarcate the separation of imported clean fill and existing profile

·        Spread additional imported clean fill material to achieve a capping of 300mm – 500mm across the entire site

·        Trench services (electrical, hydraulic & irrigation) into the clean fill profile

·        Decontamination of machinery and site surrounds

·        Installation of trees rings to protect the Norfolk Pine trees

·        Export of additional contaminated material for appropriate disposal

·        Electrical services adjustment

·        Picnic node adjustment

·        Construction fencing adjustments to facilitate access for Ironman event and Christmas period

·        Additional time spent on final trim to achieve a bund profile that could be maintained by the City’s Parks and Gardens team

·        Removal of grease trap and installation of a holding tank and vacuum pipe

·        Validation reporting and consultation with DWER and Dept. of Health

 

Completion of the revised program occurred on 24 March 2022; original completion was scheduled on 24 December 2021. 

 

Although the original contract and scope was covered by the budget these additional costs were not and have had significant budget implications.  Final Remediation and Redesign Costs are:

 

Sec

Cost

Project

Notes

Budget

Actuals

Balance

 

 

External procurement

 

 

YTD

 

120

C3227

Busselton Foreshore East Landscaping

Landscaping

$351,100.00

$1,005,100.00

-$654,000.00

 

Statutory Environment

Section 6.8 of the Local Government Act 1995 refers to expenditure from the Municipal fund that is not included in the annual budget. In the context of this report, where no budget allocation exists, expenditure is not to be incurred until such time as it is authorised in advance, by an absolute majority decision of the Council.

 

Relevant Plans and Policies

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

 

Financial Implications

Council’s approval is sought to transfer $654,000.00 from the Waste Management Facility and Plant Reserve to cover the additional costs that have been incurred.  The Waste Management Facility and Plant Reserve provides funding for waste management activities that include legacy matters due to contaminated sites within the district.

 

Stakeholder Consultation

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

 

Risk Assessment

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

 

Options

The Council could alternatively choose to fund any of these over expenditures from a different source or simply allow the over spends to be offset by the net end of year position.

CONCLUSION

Council’s approval is sought to amend the budget as per the table contained in the officers recommendation.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

If the officer recommendation is endorsed, the budget amendment will be processed prior to
June 30 2022.

 


Council                                                                                      107                                                                    22 June 2022

15.1           BUSSELTON SENIOR CITIZENS CENTRE - FUNDING REQUEST

STRATEGIC THEME

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

STRATEGIC PRIORITY

2.2 Work with key partners to facilitate a safe, healthy and capable community.

SUBJECT INDEX

Senior Citizens

BUSINESS UNIT

Community Development

REPORTING OFFICER

Community Development Officer - Cassandra Armstrong

AUTHORISING OFFICER

Manager Community and Recreation Services - Dave Goodwin

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   Busselton Senior Citizens Centre Request for funding letter dated 25th February 2022  

 

The Officer Recommendation was moved and carried.

 

COUNCIL DECISION

C2206/169              Moved Councillor A Ryan, seconded Councillor M Love

That the Council:

1.         Authorises the Chief Executive Officer to enter into a multi-year funding agreement for $88,096 (indexed per annum) with the Busselton Senior Citizens Centre Inc. (BSCC) for the purpose of providing seniors services, to be funded from the draft 2022/23 and 2023/24 Welfare / Senior Citizens budgets.

2.         Authorises the Chief Executive Officer to vary the lease entered into with BSCC dated 22nd May 2020, to reduce the BSCC’s contribution to the BSCC Building Maintenance Fund from $40,000 per annum to $20,000 in 2022/23, $30,000 in 2023/24, and returning to $40,000 annually for the remainder of the lease term.

3.         Prior to consideration of any future multi-year funding agreements, requests the Chief Executive Officer to undertake a review of the BSCC’s:

a. financial position  on an annual basis, and

b. outcomes following the completion of the City’s Community Capacity Building Program.

CARRIED 7/0

by absolute majority

officer recommendation

That the Council:

1.         Authorises the Chief Executive Officer to enter into a multi-year funding agreement for $88,096 (indexed per annum) with the Busselton Senior Citizens Centre Inc. (BSCC) for the purpose of providing seniors services, to be funded from the draft 2022/23 and 2023/24 Welfare / Senior Citizens budgets.

2.         Authorises the Chief Executive Officer to vary the lease entered into with BSCC dated 22nd May 2020, to reduce the BSCC’s contribution to the BSCC Building Maintenance Fund from $40,000 per annum to $20,000 in 2022/23, $30,000 in 2023/24, and returning to $40,000 annually for the remainder of the lease term.


3.         Prior to consideration of any future multi-year funding agreements, requests the Chief Executive Officer to undertake a review of the BSCC’s:

a. financial position  on an annual basis, and

b. outcomes following the completion of the City’s Community Capacity Building Program.

EXECUTIVE SUMMARY

The Busselton Senior Citizens Centre (BSCC) are seeking a new multi-year funding agreement of $100,000 per annum for the next three (3) years (indexed per annum), and a reduction in their annual contribution to the BSCC building maintenance fund under their current lease of $40,000 per annum. 

 

This report details the funding request and recommends that Council authorises the Chief Executive Officer to enter into a multi-year funding agreement for two (2) years and reduce the BSCC’s contribution to the building maintenance fund in a staggered manner to assist in alleviating their financial situation. 

 

Further, it is recommended that any future multi-year funding agreements are subject to a review of the BSCC’s financial position and outcomes of the City’s Community Capacity Building Program.  The CCBP is a two (2) year program so it is therefore recommended that any future funding arrangements align with this timeframe to enable a review of the outcomes of the CCBP and the BSCC’s strategic plan, including steps to ensure financial sustainability.

BACKGROUND

Building extension and new lease

In July 2016, the BSCC presented a project proposal to expand their existing leased area so they could extend their building to improve the variety of services offered and to attract a greater membership base.  Council subsequently resolved (C1607/177) to provide in principle support to increasing the area of land leased, subject to planning and design for the whole of Lot 73 Peel Terrace, including the BSCC site, being undertaken.

 

Following receipt of a formal proposal from the BSCC, at the Ordinary Meeting of Council on 13 December 2017, Council resolved (C1712/329) to support a third of the total project cost amounting to $250,000, subject to obtaining a third of the funding from Lotterywest and securing necessary statutory approvals. 

 

The original proposal evolved to accommodate membership growth and improve on service delivery resulting in a revised project cost of $1.2 million ex GST.  City Officers were successful in obtaining further funding to cover the shortfall of $350,000 from Lotterywest, resulting in a combined City / Lotterywest contribution exceeding 50% of total project cost.

 

BSCC’s contribution was $232,178 to this project consisted of amounts which had been put aside from the funding received from the City in previous years.

 

During the formative work for the expansion of the BSCC it was identified that significant maintenance/repairs were required to the building to facilitate the extension (including major roof repair). Additional contributions were then made from the City, including unplanned landscaping, footpath, parking improvements and the roof restoration to an additional value of $133,616.

 

As the area required for expansion exceeded the boundaries of the BSCC’s existing lease area it was necessary to enter into a new lease agreement.  Both the existing and new leases were drafted on the basis of the tenant paying a nominal rent and assuming responsibility for the repair and maintenance of the premises.

It had become apparent during the expansion works that the BSCC had struggled with their obligations in relation to repair and maintenance of the premises. 

 

The BSCC explained that any surplus funds available to them were retained for future expansion and improvements and that as result, maintenance was not made a priority.

 

During negotiations for the new lease it was therefore agreed that, to assist the BSCC in planning for building repair and maintenance, the lease would include provisions requiring the establishment of a Building Maintenance Fund. 

 

The establishment of building maintenance funds in high profile buildings or in situations where the City has made a substantial contribution to the construction or enhancement of a facility is a standard lease condition.   It was agreed that nothing would be required to be paid into the fund until 10 July 2022, two (2) years following the commencement of the lease term.  In line with industry asset management principles the sum required to be paid from 10 July 2022 is an annual amount of $40,000.  The current lease states that increases to the building maintenance fund will be multiplied by the Current CPI and divided by the Previous CPI.

 

Funding agreement

The BSCC has been heavily reliant on the City for ongoing funding to provide senior services.  Following a number of annual funding allocations, Council resolved in 2019 (C1907/123) to enter into a multi-year agreement to provide financial certainty to the BSCC.  This agreement expires at the end of this financial year.  In 2019 the annual contribution to these services was $86,794 (indexed per annum), and currently amounts to $88,096 per annum.

 

A written request for an increase in funding to $100,000 per annum has been received from  the BSCC (see attached letter dated 25/2/22).The request to decrease the maintenance fund contribution from $40,000 per annum was made verbally by the executive of the BSCC during conversations with City Officers.

OFFICER COMMENT

The BSCC has been affected by the COVID-19 pandemic.  Over the last two (2) years the BSCC has seen a reduction in members attending the facility as many seniors are worried for their health and the risks of contracting COVID-19.  This has had a negative impact on the BSCC’s revenue streams.  Fixed costs have also risen causing additional financial implications.

 

City Officers have been working with the BSCC’s management to understand their current financial position. The BSCC report the financial impact of the pandemic is as follows:

·        The centre was closed for a 3 month period during which the BSCC did not receive job-keeper assistance resulting in lost revenue of approximately $41,300 during this period.

·        Reduction of 78 members from 970 to 892 over the last 3 years, an approximate loss of            $4,290 (@ $55 each) in revenue.

·        Reduction of hall hire and loss of instructors resulting in a loss of $486.

·        Reduction in activity fees due to reduced participants attending activities, an approximate loss of $17,291.

·        Reduction of in-house meals in the dining room, loss of $56,755, however an increase in demand for Meals on Wheels, an increase of revenue at $44,768.

·        BUSNET sublet a room, as approved by the City, but were unable to pay their lease for a month in 2022 due to their financial pressures.  This is in conjunction to the loss of rent from the Hairdresser (4x ½ day a week) and Beautician (1x 1/2 day a week), a loss of $2,456.

·        Increase of cleaning costs per annum of $4,000.

 

The BSCC has a ‘Social Investment Account’ with an account balance of $136,000.  The BSCC plan on using funds from this account to purchase two (2) new ovens, which are now urgently required. 

 

The BSCC consider this fund to be a contingency fund to address any unforeseen shortfalls or to protect them from any unforeseen emergency or future COVID-19 shutdown and prefer to maintain a minimum balance of $100,000 in order.

 

The overall operating position of the BSCC over the last five (5) years is as follows:

·        2016/2017                  $14,192.50

·        2017/2018                 -$5,468.74

·        2018/2019                 $38,815.70

·        2019/2020                  -$280,345.06 (This includes a CAPEX contribution towards the                                            extension)

·        2020/2021                 -$12,239.87

 

BSCC have requested an increase in funding of $11,904 per annum, to bring the City’s annual contribution to $100,000 per annum.  This is to assist in covering the increased cleaning costs, an increase in water charges of $500 per annum due to additional toilet facilities and new landscaping reticulation, increase in general grocery costs of $5,000 annually, and an increase in general insurance premiums.

 

Throughout the COVID-19 recovery period and following the reduction of restrictions the BSCC expect that revenue will rise and memberships to increase over the next few years.

 

In addition, the BSCC have verbally requested a reduction in the amount required to be paid into the Building Maintenance Fund under their lease.  This is largely due to the cash flow difficulties being experienced by BSCC. The maintenance report provided by BSCC for 2020 - 2022, shows both annual totals are in excess of $20,000 per annum.

 

City Officers have undertaken a facility condition inspection and reviewed BSCC’s maintenance costs over the past two (2) years (prior to and following the expansion), and their forecast budget for the next few years’ maintenance costs.  The BSCC is currently a ‘6c’ building within the City’s Service Level Hierarchy (SLH).

 

The buildings allocated a 6c are Commercial and Community Leased buildings for which the City has no obligation with respect to the ongoing maintenance and renewal of the building i.e. not required to have a yearly budget allocation for these buildings e.g. Bovell Hockey Clubrooms, Senior Citizens Centre, Fitness Centre. On this basis, the City is currently not allocating any annual funds for the maintenance and renewal of the building through the building renewal budget– this is the sole responsibility of the lessee. This is important to note when considering the appropriate annual amount to be set aside for this purpose.

 

The inspection results are noted as follows:

·        The current estimated replacement value of the Senior Citizens Centre is $3,334,932. Under the parameters of the Building Maintenance Fund, outlined above, the annual amount required for major maintenance and renewal would be between $50,000 (1.5%) and $67,000 (2%).

·        The table below provides an overview of the estimated 10 year maintenance and renewal costs for the Senior Citizens Centre. This is based on the outcomes of the recent asset management inspection, as well as an estimate of likely timing and cost of future works.

 

City Officers are of the opinion that, given the current good condition of the building, a reduced annual allocation to the Building Maintenance Fund will not impact the appearance of the building in the short term (1-2 years). The current identified short-term renewal works such as painting to the external courtyard (est. $10,000), re-finishing timer floor boards to the stage (est. $1,000) and repairing vinyl flooring to the storeroom (est. $1,500) could still be funded under a reduced arrangement over the next two (2) years.  It is therefore recommended that the funding be reduced from $40,000 per annum to $20,000 in 2022/23 and to $30,000 in 2023/24.

 

It is recommended that at the conclusion of the two (2) years, the building be reassessed to update the ongoing maintenance and renewal requirements. The cost of these requirements should be measured against the planned allocations to the Building Maintenance Fund to ensure they are adequate. This is important to ensure the natural degradation of the building and its components are monitored over time.

 

Future planning

There is a risk that the BSSC will continue to feel the impact of COVID-19 through their membership base, resulting in a decline in active memberships, and therefore revenue in the short term.  The full impact of this and the duration is difficult to measure.

 

In recognition of this, the City has made, and continues to make, significant investment in the BSCC to support their services. With recent support through the City’s Community Capacity Building Program the BSCC have already identified the following:

·        The establishment of a working party to identify and cost up a kitchen upgrade for the BSCC.  This includes building, replacement costs, ongoing maintenance costs, and funding opportunities. 

·        A commitment to work with the City to explore future grant opportunities.

·        Identification of the need to undertake an annual internal facilities audit and establish budgets for all future maintenance and upgrades.

 

Statutory Environment

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

 

Relevant Plans and Policies

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

 

City of Busselton Social Plan (2020 - 2030)

Specifically to achieve the goal in the Seniors/Ageing section to provide for “An age friendly community that encourages ‘active ageing’ by supporting good health, active participation and secure living in order to enhance a quality of life as people get older.”

 

Financial Implications

The financial implications associated with the officer’s recommendation of maintaining the current funding for a further two (2) years has been included in the City’s Long Term Financial Plan.

 

Stakeholder Consultation

Officers have been working with BSCC for considerable time and regular consultation has occurred with the BSCC Board and manager in relation to their funding request and ongoing operational and strategic planning.

 

Risk Assessment

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

 

Options

As an alternative to the proposed recommendation the Council could:

1.         Not support funding of the BSCC which will compromise the BSCC’s ability to deliver seniors services.

2.         Support increased funding of an annual contribution of $100,000 in conjunction with the reduced requirement for the Building Maintenance Fund (staggered over 2 years), which could result in an increased reliance on the City for ongoing increased level of funding.

CONCLUSION

The current funding agreement has enabled the BSCC to manage their operations through a very difficult period. Future funding and the inclusion of the BSCC into the CCBP will ensure that the services and the building are maintained appropriately into the future.

 

It is recommended that Council support the BSCC financially for a further two (2) years at the current rate of $88,096 per annum (indexed per annum). It is also recommended that the annual contribution to the BSCC Building Maintenance Fund be reduced to $20,000 in 2022/23, increased to $30,000 in 2023/24 and then reviewed annually for the remaining term of the lease to provide some alleviation to the BSCC’s cash flow.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Officers have the information required to prepare a grant agreement subject to Council consideration of the recommendation. It is anticipated that this agreement would be finalised in time for the 2022/2023 financial year and effective from 1st July 2022.  Lease variations as recommended would be finalised in a reasonable timeframe, no later than 30th September 2022.


Council

108

22 June 2022

15.1

Attachment a

Busselton Senior Citizens Centre Request for funding letter dated 25th February 2022

 

 


Council                                                                                      109                                                                    22 June 2022

items for debate

12.4           Finance Committee - 8/6/2022 - BUDGET AMENDMENT - EWS VARIOUS PROJECTS

STRATEGIC THEME

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

STRATEGIC PRIORITY

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

SUBJECT INDEX

Budget Amendment - EWS Various Projects

BUSINESS UNIT

Engineering and Works Services

REPORTING OFFICER

Director, Engineering and Works Services - Oliver Darby

AUTHORISING OFFICER

Chief Executive Officer - Mike Archer

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   Budget Movements  

This item was considered by the Finance Committee at its meeting on 8/6/2022, the recommendations from which have been considered by Council.

DISCLOSURE OF INTEREST

Date

22 June 2022

Meeting

Ordinary Council

Name/ Position

Cr Mikayla Love

Item No./ Subject

Item No. 12.4 ‘Finance Committee – 8/6/2022 – BUDGET AMENDMENT – EWS VARIOUS PROJECTS

Type of Interest

Impartiality Interest

Nature of Interest

The property in which I live abuts one of the road projects contained within the item.  The works on Ludlow Hithergreen Road are finished, and the amendment to transfer surplus funds to the Peel Terrace job won’t impact on or change any works for Ludlow Hithergreen Road, which is why I will be declaring an impartiality interest, instead of a proximity interest.

 

Prior to the meeting, officers foreshadowed an amended recommendation. The amended recommendation was moved first and carried.

 

COUNCIL DECISION

C2206/170              Moved Councillor P Carter, seconded Councillor S Riccelli

That the Council agree to endorse the following budget amendments;

1.    Offset $181,000 in coastal damage repair works from the major storm event that occurred in July and August by transferring $126,000 in budget from various postponed projects and drawing down an additional $55,000 from Emergency Disaster Recovery Reserve.

2.    Transfer the $100,000 Capital Sand Re-nourishment budget to Operations and recognise $50,000 in sand re-nourishment grant revenue and corresponding expenditure secured from the Department of Transport.

3.    Transfer $100,000 in budget from C3241 being the Outdoor Spaces (Gen capital allocation for courts, flood lights etc) project representing funding from Reserve 302 - Community Facilities - City District monies and transfer an additional $20,000 in budget from Reserve 225 Parks, Gardens and Reserve to B9612 being the Churchill Park Sports Lighting Renewal Project.

4.    Transfer the remaining budget totalling $156,636 from the Ludlow Hithergreen Road project (S0077) to the Peel Terrace Roundabout project (S0070) where $104,424 of this is Regional Road Group grant funds while the remaining $52,212 is funded from the Road Asset Renewal Reserve;

5.    Recognise and receive $94,909 in additional funding form the Regional Road Group to cover additional costs associated with the Peel Terrace Roundabout (S0070); and

6.    Transfer $128,455 from the Major Traffic Improvements Reserve to the Peel Terrace Roundabout project (S0070) to cover additional costs associated with the project;

  7.   Note the budget movements as per Attachment A

CARRIED 7/0

by absolute majority

Reasons:          A review of the table identified a correction was required to adequately depict the movements in relation to the proposed budget amendment, with the revised table as per Attachment A.  

 

 

OFFICER RECOMMENDATION

That the Council agree to endorse the following budget amendments;

1.    Offset $181,000 in coastal damage repair works from the major storm event that occurred in July and August by transferring $126,000 in budget from various postponed projects and drawing down an additional $55,000 from Emergency Disaster Recovery Reserve.

 

2.    Transfer the $100,000 Capital Sand Re-nourishment budget to Operations and recognise $50,000 in sand re-nourishment grant revenue and corresponding expenditure secured from the Department of Transport.

 

3.    Transfer $100,000 in budget from C3241 being the Outdoor Spaces (Gen capital allocation for courts, flood lights etc) project representing funding from Reserve 302 - Community Facilities - City District monies and transfer an additional $20,000 in budget from Reserve 225 Parks, Gardens and Reserve to B9612 being the Churchill Park Sports Lighting Renewal Project.

 

4.    Transfer the remaining budget totalling $156,636 from the Ludlow Hithergreen Road project (S0077) to the Peel Terrace Roundabout project (S0070) where $104,424 of this is Regional Road Group grant funds while the remaining $52,212 is funded from the Road Asset Renewal Reserve; and

 

5.    Transfer $220,000 from the Major Traffic Improvements Reserve to the Peel Terrace Roundabout project (S0070) to cover additional costs associated with the project.

Account string

Existing budget

Adjustment

Adjusted budget

Reserve

1.     Yallingup Costal Damage

541.C7003.3280.0000

Foreshore Protection-Yallingup

$0

$126,000 debit

$126,000

From 225 - Parks, Gardens and Reserves Reserve

541.C7003.3280.0000

Foreshore Protection-Yallingup

$0

$55,000 debit

$181,000

From Emergency Disaster Recovery Reserve

545.C1006.3280.0000

$15,000

-$15,000 credit

$0

Remove From 225 - Parks, Gardens and Reserves Reserve


 

545.C1012.3280.0000

$10,000

-$10,000 credit

$0

Remove From 225 - Parks, Gardens and Reserves Reserve

545.C3007.3280.0000

$25,000

-$25,000 credit

$0

Remove From 225 - Parks, Gardens and Reserves Reserve

545.C3239.3280.0000

$20,000

-$20,000 credit

$0

Remove From 225 - Parks, Gardens and Reserves Reserve

545.C3240.3280.0000

$10,000

-$10,000 credit

$0

Remove From 225 - Parks, Gardens and Reserves Reserve

545.C1752.3280.0000

$40,000

-$40,000 credit

$0

Remove From 225 - Parks, Gardens and Reserves Reserve

545.C3236.3280.0000

$20,750

-$6,000 credit

$14,750

Remove From 225 - Parks, Gardens and Reserves Reserve

Emergency Disaster Recovery Reserve

$135,370

-55,000 credit

$80,370 CB

Emergency Disaster Recovery Reserve

2.     Sand Renourishment

541.C2512.3280.0000

Sand Renouishment Capital

$100,000

-$100,000 credit

$0

102 - Coastal and Climate Adaptation Reserve

541.C7002.3280.2153

Foreshore Protection-Dunsborough

$4,150

$100,000 debit

$104,150

$100k from the Coastal and Climate Adaptation Reserve

541.C7002.3280.0000

Foreshore Protection-Dunsborough

$104,150

$50,000 debit

$154,150

$50k grant corresponding expenditure budget

541.C7002.1239.2153

Operating grant

$0

-$50,000 credit

$50,000

DOT Grant

3.     Churchill Park Sports lighting

545.B9612.3280.0000

Churchill Park Renew Sports Lights

$212,850

$100,000

$312,850

From C3241 Outdoor Spaces (General capital allocation for courts, flood lights etc.) funded from the 302 - Community Facilities - City District

545.C3241.3280.0000

Outdoor Spaces (General capital allocation for courts, flood lights etc.)

$200,000

-$100,000

$100,000

Reduce the budget C3241. The other $100,000 is budgeted grant revenue the City will not receive. 

545.B9612.3280.0000

Churchill Park Renew Sports Lights

$312,850

$20,000

$332,850

From: 225 - Parks, Gardens and Reserves Reserve

4.     Peel Terrace Roundabout

541.S0077.3280.000

Ludlow-Hithergreen Stage 2

$360,000

$-156,424

$205,376

Reduce budget contractors Ludlow job.

541.S0070.3280.0000

Peel & Queen Street Roundabout

$610,500

$156,424

$766,924

Increase budget contractors – Peel job

541.S0077.1210.0000

Ludlow-Hithergreen Stage 2

$220,000

$104,424

$135,576

Reduce RRG grant revenue – Ludlow job

541.S0070.1210.0000

Peel & Queen Street Roundabout

$400,000

$104,424

$504,424

Increase RRG grant revenue – Peel Job

541.S0077.3280.000

Ludlow-Hithergreen Stage 2

$766,924

$220,000

$986,924

Increase budget contractors. Funds from 137 -  Major Traffic Improvements Reserve

 


EXECUTIVE SUMMARY

This report seeks Council approval regarding the four budget amendments as listed below;

1.         Yallingup Coastal Damage

2.         Sand Re-nourishment

3.         Churchill Park Sports lighting

4.         Peel Terrace Roundabout

BACKGROUND

In accordance with section 6.8(1) of the Local Government Act 1995, a local government is not to incur expenditure from its Municipal fund for an additional purpose except where the expenditure:

·        is incurred in a financial year before the adoption of the annual budget by the local government; and

·        is authorised in advance by Council resolution - absolute majority required; or

·        is authorised in advance by the Mayor in an emergency.

 

Approval is therefore sought for the budget adjustments for the following items.

1.         Yallingup Coastal Damage

2.         Sand Re-nourishment

3.         Churchill Park Sports lighting

4.         Peel Terrace Roundabout

OFFICER COMMENT

Yallingup Coastal Damage

A series of storm fronts impacted the City in July and August 2021. Significant damage was sustained to both the beach access way in Yallingup and the beach itself. Due to the extent of the damage the platform lookout, beach showers and parts of the path/stairs needed to be repaired and replaced. “Improvement” works in the form of coastal protection with sand bags and dune stabilisation were also completed to protect the infrastructure from future events. These works incurred unbudgeted contractor costs totalling $181,317.  These costs are recorded against Cost Code C7003 - Foreshore Protection-Yallingup & Smiths Beach.  

 

Since the event various City Officers pursued all avenues regarding a possible insurance claim, however this has been unsuccessful. 

 

A number of capital projects were temporarily postponed pending the outcome regarding the insurance line of enquiry. This amendment will now seek to transfer both; $126,000 in budget allocations associated with other projects put on hold and $55,000 in additional funding from the Emergency Disaster Recovery Reserve to cover the $181,000 in unforeseeable costs incurred. The source of funds is outlined in the Financial Implications section of this report.

 

Sand Re-nourishment

The same storm events as mentioned in item 1 above also did extensive damage to the Dunsborough and Busselton coastline. Significant sand re-nourishment costs to the value of $150,000 have been incurred year to date. The City has an annual $100,000 sand re-nourishment budget classified as capital and the City also secured a $50,000 Sand Re-nourishment Costal Protection Grant from the Department of Transport earlier in the financial year. This amendment will seek to both reassign the $100,000 budget from capital to operating and also bring the $50,000 grant to account.  

 

Based on a combination of Australian Accounting Standards a change in the way the City accounts for sand renourishment needs to be resolved.

 

Through the appropriate accounting standards it has been determined that these costs represent a form of temporary coastal protection in the form of beach maintenance and thus should be recorded as an operational and maintenance costs as opposed to a capital cost.

 

The nature of sand re-nourishment, in the most part, represents the depositing, spreading and shaping of sand on City beaches prone to regular erosion or to form defensive structures to minimise erosion/infrastructure damage. In comparison, building sand-bag groynes represent more permanent and measurable coastal defences that are categorised as assets and thus can be depreciated over their estimated useful lives.

 

In summary, it has been determined that sand re-nourishment represent a form of maintenance to natural assets in the form of beaches that are not recorded on the City’s balance sheet. Based on this, a budget amendment is required to adjust and transfer the City’s capital sand re-nourishment budget to operations where costs have been incurred.

 

Further to the above, the City secured a $50,000 Sand Renourishment Costal Protection Grant from the Department of Transport for this financial year. Given the change in cost categorisation a budget amendment is now required for record keeping purposes. This will subsequently increase the operational sand renourishment budget up to a value of $150,000 representing the amount that has been spent year to date.

 

The Council should be aware that all of the City’s Coastal Protection and sand renourishment budgets have now been fully expended; if there is any costal damage from adverse weather events between now and June 30 there is no budget to accommodate additional costs, unless further funds are utilised from the Emergency Disaster Recovery Reserve.

   

Churchill Park Sports Lighting Project

As part of the City’s asset management plan and Sport and Recreation Strategy, the upgrade of the Churchill Parks sports lighting was identified along with the upgrade and replacement of the trotting track lights to LED lights.

 

The existing budget was set based on price estimates received from suitably qualified suppliers in the 12 months leading up to project implementation. The budget valued at $212,850 (including a Community Sporting and Recreation Facilities Fund (CSRFF) grant of $72,850) was assigned to the project at that point. Due to supplier issues the material costs subsequently increased significantly by up to 40% while electrical contractor costs also increased with only one contractor submitting a Request for Quotation (RFQ) due to high demand for their services. The combined impact of higher costs has resulted in a price escalation on the project in the order of $130,000. The project was split into materials to be purchased directly by the City and the procurement of electrical contract labour for installation

 

The Financial Implications section of this report offers recommendations on where an additional $130,000 can be sourced to accommodate these higher costs.

 

Peel Terrace Roundabout

The original costing for this project was $610,000 and included some minor design works, service relocations and the construction works (outside of contractor’s works).

 


The road construction component of this project was advertised for tender on 21 August 2021, and tenders closed on 8 September 2021. The Council accepted the tender from BCP Contractors Pty Ltd for RFT 04/21 ROAD NETWORK UPGRADE PEEL TERRACE / CAUSEWAY ROAD INTERSECTION UPGRADE STAGE 1 as being the most advantageous tender at its Council meeting held on 12 October 2022.

 

Further to detailed contract negotiations and a further council report on 24 November 2021 BCP Contractors Pty Ltd was awarded the project formally by means of letter of award on 6 January 2022. Note that the contract award price was in excess of the existing budget at this point.

 

The contractor took possession of site on 15 February 22, and the project was completed on 14 April 2022. The original construction period was 7 weeks, the project was completed in approximately 8 weeks.

 

This project came with a host of challenges, in the most part working in one of the oldest sections of road in the City with data on services not being available as part of the Dial Before You Dig nor from the service pickup completed prior to the works commencing. The contractor encountered a myriad of old asbestos cement pipes, which were all removed as part of the project.

 

A further major constraint was the works traversed two of ATCO Gas’s main lines, being a primary and secondary feed for the area. The logistics of working around these lines was problematic as ATCO Gas could not provide us as-built data on these lines. As a result a full time gas spotter was required on site whilst the contractor carried out work. The ATCO mains (along with other services) created a further issue with the pavement design whereby in order to avoid services (the depth at which could not be identified at the design stage) the pavement depth had to be reduced which required the need to install Tensar Geo Grid mesh. The mesh strengthens the pavement at a reduced thickness and although there are savings from the use of less imported material the grid is at an additional cost.  

 

During construction when the drainage system was exposed, officers had to make the determination to replace additional drainage infrastructure whilst the road was open. The original scope did not require a portion of mainline to be replaced, however on inspection the old infrastructure using butt jointed pipes was considered unsuitable and beyond its useable life. The pipe was re configured to into the new drainage layout and upgraded. The redesign and renewal reduced the overall additional total stormwater pipes in system and negated the need for upgrading these pipes at a later stage at a higher cost.

 

No landscaping was included in the original scope of works/budget, only new concrete to the centre of the roundabout. This was seen as unsatisfactory for the entrance into Busselton. A detailed Landscape Design was completed similar to the designs completed on Causeway road for the roundabout. In addition only a small portion of the old median island located north of the works, was included in the project, this was also upgraded from an old “pink” concrete median to a landscaped median. Sections of old kerb were also replaced to ensure the entire extent of the works was completely upgraded.

 

A further increase to the scope was the upgrade of the footpaths from grey concrete to exposed aggregate. This was to ensure when the next Stage of the Road Network Upgrade, i.e. Albert Street and Queen Street intersection is completed, that there is continuation of the theme that links the entire Queen Street and the entry on Causeway Road/Peel Terrace.

 

The last item was for additional costs associated with the relocation and upgrade of a Busselton water Main than ran through the roundabout.

 

Further to the above, with Officers understanding the requirement for additional funding on this project, an opportunity was presented regarding a significant saving on another Regional Road Group RRG project (Ludlow Hithergreen Road project - S0077). To this end, $156,626 has been secured that can be offset against the additional Peel Terrace works.

 

In addition officers requested further funding of $94,909 from the Regional Road Group (RRG) underspends to assist with this shortfall. The RRG and Main Roads Western Australia (MRWA) have supported our request and approved this additional funding.

 

Further details regarding this saving and the additional funding are provided in the Financial Implications section of this report.     

 

No

Description

Amount

Comment

1.

ATCO Gas Main

+$27k

ATCO Gas Spotter, digital Survey data, removal of water main.

2.

“Tensar” Geo grid matting

+$42k

For road stabilisation and protection of high pressure gas main. 

3.

Engineering design and Consultancy costs

+$21K

Also used for design improvements throughout the project/works. 

Extra Drainage; old butt joint storm pipes replaced with modern equivalents

+$69k

It would have made no sense to leave these in place as their failure would mean significant damage to the new road.  

4

Concrete footpaths to exposed aggregate and increased area from 380m2 to 640m2

+$97k

The area of footpath to be replaced was increased and given the high profile entrance to town the plain concrete was changed to exposed aggregate for improved aesthetic.

 

Roundabout Landscaping

+$30k

Landscaping and reticulation to the roundabout annulus.

Reinstatement

+$30k

Increased renewal of old reticulation system, turf, adjusting the surrounding verge levels to the raised road height that was lifted for better drainage.

 

5.

Added Median Island and Kerbing on Sweeps

+$29k

Scope changed, landscape to median along Queen Street.

6.

Busselton Water costs in relation to services at site

+$35k

Busselton Water, additional cost for water main relocation.

 

TOTAL

+$380K

 

 

The difference between the $380,000 and the additional $251,545 in Regional Road Group funds secured is $128,455. It is thus proposed that an amount of $128,455 be approved for draw down from the City’s Major Traffic Management Reserve. This amount includes the already approved  additional $87,826 from the Major Traffic Improvements Reserve (Reserve #137) that was approved as part of the award of RFT 04/21 Peel Terrace/Causeway Road Intersection Upgrade – Stage 1A  project.

 


Statutory Environment

Section 6.8 of the Local Government Act 1995 refers to expenditure from the Municipal fund that is not included in the annual budget. In the context of this report, where no budget allocation exists, expenditure is not to be incurred until such time as it is authorised in advance, by an absolute majority decision of the Council.

 

Relevant Plans and Policies

There are no relevant plans or policies to consider in relation to these Budget amendments.

 

Financial Implications

Yallingup Coastal Damage

The table below lists Capital projects that were temporarily put on hold pending the outcome regarding access to insurance. The recommendation is now for the Council to approve the transfer of Budget from these projects to offset the Yallingup coastal repair costs; these works to be permanently suspended this Financial Year. It is further recommended that the remaining shortfall totalling $55,317 rounded to $55,000 be funded form the Emergency Disaster Recovery Reserve.

 

Projects to be postponed

 

Cost Code

Project Title

Amount

Funding Source

C1006

Townscape Street Furniture Replacement – Dunsborough

$15,000

225 - Parks, Gardens and Reserves Reserve

C1012

Townscape Street Furniture Replacement – Busselton

$10,000

225 - Parks, Gardens and Reserves Reserve

C3007

Park Furniture Replacement - Replace aged & unsafe Equip

$25,000

225 - Parks, Gardens and Reserves Reserve

C3239

Foreshore Busselton - High Street to Carey Street

$20,000

225 - Parks, Gardens and Reserves Reserve

C3240

Foreshore Yallingup Capital

$10,000

225 - Parks, Gardens and Reserves Reserve

C1752

Beach Access Improvements

$40,000

225 - Parks, Gardens and Reserves Reserve

C3236

Dunsborough Foreshore Lighting (remaining budget)

$6,000

225 - Parks, Gardens and Reserves Reserve

 

TOTAL PROJECT BUDGET

$126,000

 

 

Total costs of renewal works

$181,317

 

 

Shortfall  - 55,000 From the Emergency Disaster Recovery Reserve

$55,317

 

 

This amendment will have no impact on the City’s net municipal funds.  

 

Sand Renourishment

This is a basic amendment seeking to transfer the existing $100,000 capital budget into operations while also recording the additional $50,000 in grant revenue and corresponding $50,000 in expenditure. This will have no impact on the City’s net operating position.  

 

Churchill Park Sports lighting

A budget valued at $212,850 was assigned to the project funded from the three sources listed below;

·        Municipal funds totaling $128,200

·        Community Sporting and Recreation Facilities Fund (CSRFF) Grant totaling $72,850 

·        Parks, Gardens and Reserves Reserve $11,800.

City Officers request a budget amendment seeking to transfer;

1.         $100,000 of the Capital project budget C3241 titled - Outdoor Spaces (General capital allocation for courts, flood lights etc.). This budget was assigned in the Long Term Financial Plan as an annual allocation to increase the lighting at existing sporting facilities to increase the availability of the sports grounds, thus is an appropriate fit to be utilised for Churchill Park for the same purpose. The $100,000 is funded via Developer Contributions from the Community Facilities - City District Precinct Reserve.

2.         $20,000 in additional funds to be drawn from the Parks, Gardens and Reserves Reserve.