COB-RGB

 

 

 

 

Council Agenda

 

 

 

22 September 2021

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 22 September 2021

 

 

 

TO:                  THE MAYOR AND COUNCILLORS

 

 

NOTICE is given that a meeting of the Council will be held in the Council Chambers, Administration Building, Southern Drive, Busselton on Wednesday, 22 September 2021, commencing at 5.30pm.

 

Your attendance is respectfully requested.

 

 

DISCLAIMER

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

 

 

 

NAOMI SEARLE

 

A/CHIEF EXECUTIVE OFFICER

 

10 September 2021


CITY OF BUSSELTON

Agenda FOR THE Council MEETING TO BE HELD ON 22 September 2021

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

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

2....... Attendance. 5

3....... Prayer. 5

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

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

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

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

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

Previous Council Meetings. 5

8.1          Minutes of the Council Meeting held 8 September 2021. 5

Committee Meetings. 6

8.2          Minutes of the Finance Committee Meeting held 8 September 2021. 6

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

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

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

12..... Reports of Committee. 7

12.1        Finance Committee - 8/9/2021 - LIST OF PAYMENTS MADE - JULY 2021. 7

12.2        Finance Committee - 8/9/2021 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 JULY 2021. 17

12.3        Finance Committee - 8/9/2021 - BUDGET AMENDMENT REQUEST - AIRPORT DEVELOPMENT PROJECT. 49

12.4        Finance Committee - 8/9/2021 - REVISION TO 2021/22 WASTE FEES AND CHARGES. 54

12.5        Finance Committee - 8/9/2021 - REVIEW OF OVERALL ASSET MANAGEMENT PLAN.. 60

12.6        Finance Committee - 8/9/2021 - CEO KPI - FINANCIAL SUSTAINABILITY PLAN.. 90

13..... Planning and Development Services Report. 146

14..... Engineering and Work Services Report. 147

14.1        RFT 16/21 ROAD SHOULDER WIDENING.. 147

15..... Community and Commercial Services Report. 151

16..... Finance and Corporate Services Report. 152

17..... Chief Executive Officers Report. 153

17.1        COUNCILLORS' INFORMATION BULLETIN.. 153

18..... Motions of which Previous Notice has been Given.. 156

19..... urgent business. 156

20..... Confidential Matters. 157

20.1        DISPOSITION OF PROPERTY LOTS 58 & 59 CHAPMAN HILL ROAD AND LOT 60 QUEEN ELIZABETH AVENUE, AMBERGATE

21..... Closure. 158

 


Council                                                                                      6                                                           22 September 2021

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

 

2.               Attendance 

Apologies

 

Approved Leave of Absence

 

Nil

 

3.               Prayer

 

4.               Application for Leave of Absence

 

5.               Disclosure Of Interests

 

6.               Announcements Without Discussion

Announcements by the Presiding Member

 

7.               Question Time For Public

Response to Previous Questions Taken on Notice

Public Question Time For Public

 

8.               Confirmation and Receipt Of Minutes 

Previous Council Meetings

8.1             Minutes of the Council Meeting held 8 September 2021

Recommendation

That the Minutes of the Council Meeting held 8 September 2021 be confirmed as a true and correct record.

 

Committee Meetings

8.2             Minutes of the Finance Committee Meeting held 8 September 2021

Recommendation

That the Minutes of the Finance Committee Meeting held 8 September 2021 be noted.

 

9.               RECEIVING OF Petitions, Presentations AND DEPUTATIONS

Petitions

Presentations

Deputations

 

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

 

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


Council                                                                                      8                                                           22 September 2021

12.             Reports of Committee

12.1           Finance Committee - 8/9/2021 - LIST OF PAYMENTS MADE - JULY 2021

STRATEGIC THEME

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

STRATEGIC PRIORITY

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

SUBJECT INDEX

Financial Operations

BUSINESS UNIT

Financial Services

REPORTING OFFICER

Manager Financial Services - Paul Sheridan

AUTHORISING OFFICER

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 - July 2021

 

This item was considered by the Finance Committee at its meeting on 8/9/2021, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council notes payment of voucher numbers M118861 – M118881, EF080583 – EF081343, T7566 – T7568, DD004550 – DD004565, as well as payroll payments, together totalling $9,945,242.95.

 

OFFICER RECOMMENDATION

That the Council notes payment of voucher numbers M118861 – M118881, EF080583 – EF081343, T7566 – T7568, DD004550 – DD004565, as well as payroll payments, together totalling $9,945,242.95.

 

EXECUTIVE SUMMARY

This report provides details of payments made from the City’s bank accounts for the month of July 2021, for noting by the Council and recording in the Council Minutes.

 

BACKGROUND

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

OFFICER COMMENT

In accordance with regular custom, the list of payments made for the month of July 2021 is presented for information. 

Statutory Environment

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

Relevant Plans and Policies

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

Financial Implications

There are no financial implications associated with the officer recommendation.

Stakeholder Consultation

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

Risk Assessment

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

Options

Not applicable.

CONCLUSION

The list of payments made for the month of July 2021 is presented for information.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Council

16

22 September 2021

12.1

Attachment a

List of Payments - July 2021

 









Council                                                                                      20                                                         22 September 2021

12.2           Finance Committee - 8/9/2021 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 JULY 2021

STRATEGIC THEME

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

STRATEGIC PRIORITY

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

SUBJECT INDEX

Financial Services

BUSINESS UNIT

Financial Services

REPORTING OFFICER

Manager Financial Services - Paul Sheridan

AUTHORISING OFFICER

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   Investment Report - July 2021

Attachment b    Financial Activity Statement - July 2021

 

This item was considered by the Finance Committee at its meeting on 8/9/2021, the recommendations from which have been included in this report.

 

COMMITTEE RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 31 July 2021, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations 1996.

 

OFFICER RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 31 July 2021, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations 1996.

 

EXECUTIVE SUMMARY

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

 

This report has been compiled to fulfil the statutory reporting requirements of the Act and associated Regulations, whilst also providing the Council with an overview of the City’s financial performance on a year to date basis, for the period ending 31 July 2021.

 

BACKGROUND

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

·        Annual budget estimates

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

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

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

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

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

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

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

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

OFFICER COMMENT

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

Statement of Financial Activity

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

Net Current Position

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

Capital Acquisition Report

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

·        Land and Buildings

·        Plant and Equipment

·        Furniture and Equipment

·        Infrastructure

Reserve Movements Report

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

 

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

Comments on Financial Activity to 31 July 2021

The Statement of Financial Activity (FAS) for the year to date (YTD) shows an overall Net Current Position of $646K as opposed to the budget of ($3.6M). This represents a positive variance of $4.2M YTD.

 

The significant variance to budget in the first month of the financial year is predominantly due to non-completion of, or further delays in the supplier billing, for carried over capital works in the timeframe that was forecast.   

 

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

2020/21
Actual YTD

$

2020/21
Amended
Budget YTD

$

2020/21
Amended
Budget

$

2020/21
YTD Bud Variance

%

2020/21
YTD Bud Variance

$

Change in Variance Current Month

$

Revenue from Ordinary Activities

 

(35.61%)

(555,864)

(555,864)

1.    Rates

(23,489)

31,177

54,933,780

(175.34%)

(54,666)

(54,666)

2.    Operating Grants, Subsidies and Contributions

53,878

463,126

4,730,088

(88.37%)

(409,248)

(409,248)

3.    Fees & Charges

863,345

1,039,224

18,102,218

(16.92%)

(175,879)

(175,879)

4.    Other Revenue

89,108

9,904

414,950

799.72%

79,204

79,204

Expenses from Ordinary Activities

 

9.49%

674,295

674,295

5.    Materials & Contracts

(485,894)

(898,896)

(20,245,296)

45.95%

413,002

413,002

6.    Utilities

(129,169)

(158,486)

(2,774,773)

18.50%

29,317

29,317

7.    Other Expenditure

(323,448)

(632,948)

(9,685,100)

48.90%

309,500

309,500

8.    Non-Operating Grants, Subsidies and Contributions

40,000

2,488,229

34,846,780

(98.39%)

(2,448,229)

(2,448,229)

Capital Revenue & (Expenditure)

 

92.10%

4,700,576

4,700,576

9.    Land & Buildings

(83,803)

(2,032,035)

(22,838,597)

95.88%

1,948,232

1,948,232

Plant & Equipment

(31,639)

(60,000)

(2,870,000)

47.27%

28,361

28,361

Furniture & Equipment

(49,348)

(133,225)

(828,800)

62.96%

83,877

83,877

Infrastructure

(355,967)

(2,309,172)

(38,334,501)

84.58%

1,953,205

1,953,205

10.  Proceeds from Sale of Assets

0

39,000

776,071

(100.00%)

(39,000)

(39,000)

11.  Repayment of Capital Lease

(98,375)

(120,464)

(489,199)

18.34%

22,089

22,089

12.  Transfer to Restricted Assets

(1,736,659)

0

(21,740)

(100.00%)

(1,736,659)

(1,736,659)

13.  Transfer to Reserves

(37,910)

(1,678,383)

(22,109,232)

97.74%

1,640,473

1,640,473

14.  Transfer from Reserves

2,085,804

1,285,805

39,381,069

62.22%

799,999

799,999


Revenue from Ordinary Activities

In total, revenue from Ordinary Activities is $556K, or 35.61%, behind budget YTD. The material variance items contributing to this include:

 

1.      Rates

Rates appear to be $55K behind budget, but this is a result of the rates exemptions on properties partially occupied by charitable organisations being processed into the July month in error.  They should have into the August month to offset against the full rates run. 

 

Without this rates would still have been behind budget by approximately $31K, as there have been no interim rating schedules processed at this time.

 

2.      Operating Grants, Subsidies and Contributions

Behind YTD budget by $409K, or 88.37%, 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

13,135

36,619

(23,484)

(64.13%)

(23,484)

10200

Financial Services – Insurance Recoveries

451

25,516

(25,065)

(98.23%)

(25,065)

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.

Community and Commercial Services

5,027

78,358

(73,331)

(93.58%)

(73,331)

10543

Community Development – State Government Grants

 -

60,000

(60,000)

(100.00%)

(60,000)

The Lottery West grant for the Strengthening Communities Program was budgeted to be received in July, but we are still awaiting payment.

10591

Geographe Leisure Centre – State Government Grants

 -

10,000

(10,000)

(100.00%)

(10,000)

Reimbursement from the State Government for the trainee at the GLC was budgeted for July, however processing of the training documentation has been delayed at the State Government level due to the Apprentice Support Network being inundated with thousands of trainee’s applying for the government incentives.  Payment is now expected in August.

Planning and Development Services

 -

338,069

(338,069)

(100.00%)

(338,069)

10931

Protective Burning & Firebreaks-Reserves - State Government Grants

 -

250,000

(250,000)

(100.00%)

(250,000)

The invoice for the grant will be raised during August.

10942

Bushfire Risk Management Planning – DFES - State Government Grants

 -

88,069

(88,069)

(100.00%)

(88,069)

The invoice for the grant will be raised during August.


 

Engineering and Works Services

35,716

10,080

25,636

254.33%

25,636

11501

Operations Services Works – Workers compensation Reimbursements

26,212

5,202

21,010

403.89%

21,010

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.

 

3.      Fees & Charges

Behind YTD budget by $176K, or 16.92%, 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

$

Community and Commercial Services

431,594

518,538

(86,944)

(16.77%)

(86,944)

10591

Geographe Leisure Centre

204,188

224,607

(20,419)

(9.09%)

(20,419)

The revenue shortfall was due to:

·        $17K less in membership fees, which resulted from the sale commencing later in July.  It is anticipated that August sales will offset the July shortfalls;

·        $2K attributed to lower stadium team fees, as the majority of these were bulk payments made in April.  This will correct itself over time; and

·        $1.8K less from the wet areas as there were credits carried over from last financial year due to COVID closure, impacting on learn to swim revenue.

11151

Airport Operations

107,692

174,690

(66,998)

(38.35%)

(66,998)

The revenue shortfall was due to:

·        Airport screening fees of $32K not received due to the delay to Jetstar RPT services;

·        Anticipated airport landing fees of $35K not received into the City of Busselton account as yet.

Planning and Development Services

210,834

322,894

(112,060)

(34.71%)

(112,060)

10808

Compliance Services – Swimming Pool Inspection Fees

1,077

100,018

(98,941)

(98.92%)

(98,941)

These fees are included in the annual rates notices, which were forecast to have been struck in July.  This didn’t happen until early August, so the budget variance is purely timing related.

10810

Statutory Planning – Town Planning Other Income

47,235

72,398

(25,163)

(34.76%)

(25,163)

Statutory Planning Income fluctuates in accordance with the lodgement of Development Applications. No significant DA’s were lodged during July, however a number are expected later in 2021.

10920

Environmental Health Services Administration – Temporary Accommodations

70,232

55,231

15,001

27.16%

15,001

The budget variance is largely due to caravan park licence renewal fees coming slightly earlier than budgeted.


 

Engineering and Works Services

113,028

89,660

23,368

26.06%

23,368

G0031

Dunsborough Waste Facility – Liquid Waste Tipping Fees

93,389

70,840

22,549

31.83%

22,549

This is largely due to Yelverton Liquid Waste reaching their limit at their Yelverton facility, and having to dispose of liquid waste at Dunsborough Waste Facility instead.

Other depositors (Busselton Liquid Waste, Geographe Liquid Waste, Complete Portables, Sandgroper Contracting, Western Resource Recovery) are also tipping at slightly above their average.

 

4.      Other Revenue

Ahead of YTD budget by $79K, or 799.72%, 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

$

Engineering and Works Services

85,221

517

84,704

16,383%

84,704

G0030 & G0031

Busselton & Dunsborough  Transfer Station – Sale of Scrap Materials

85,153

517

84,636

16,371%

84,636

The budget for the receipt of income relating to the sale of scrap materials (metal in particular), has not been aligned effectively with actual receipts.  This should rectify somewhat as the year progresses.  It should also be noted that the prices received for scrap metal have been extremely favourable – up to $220/tonne, compared to $110-$140/tonne during 2020.

 

Expenses from Ordinary Activities

Expenditure from ordinary activities is $917K, or 12.91%, less than expected when compared to the budget YTD as at July. 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.

 

5.      Materials & Contracts

Less than YTD budget by $413K.  The main contributors to this variance are listed in the table below:

Cost Code

Cost Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Finance and Corporate Services

26,573

132,124

105,551

79.9%

105,551

10250

Information & Communication Technology Services

7,067

67,435

60,368

89.5%

60,368

The variance is largely due to the allocation of the July portion of prepaid software licenses not occurring until August.  Also, the monthly allocation of the annual budget was set based on an historical 4 year monthly cash payment trend. This will not necessarily align with the new prepaid expenses allocation process that has been adopted to more accurately reflect proper accrual accounting practices.


 

10500

Legal and Compliance Services

 -

10,262

10,262

100.0%

10,262

The variance YTD relates predominantly to the unspent budgeted amount for external legal services.  It is not possible to predict when or to what extent legal services will be required at the time of setting the budget, therefore the annual allocation is spread evenly over the year.

10616, 10617, & 10618

Aged Housing

462

13,991

13,529

96.7%

13,529

We can never say with certainty when this will be drawn on as works are carried out throughout the year and generally need to coincide with vacancies.  It is likely refurbishment works will be carried out on at least one unit in the next 4-6 weeks.

Community and Commercial Services

40,297

212,587

172,289

81.0%

172,289

10543

Community Development

 -

40,000

40,000

100.0%

40,000

This relates to the Strengthening Communities program funded by Lotterywest. The program is still in development and procurement has not yet taken place.  It is anticipated that this program will be launched during September.

10600

Busselton Jetty Tourist Park

2,080

46,731

44,651

95.5%

44,651

The monthly payment of the Park Management Contract was delayed until August.

11151

Airport Operations

7,856

55,307

47,451

85.8%

47,451

YTD variances are mainly due to:

•          Airport screening services – there was a $32k payment delayed due to the postponement of Jetstar RPT services;

•          Inspections – The current $5k commitment for Electrical Annual technical Inspection was delayed until September, with a further $5k deferred to June next year;

•          Commission Charges – $3k has been delayed due to 60 days terms on aircraft landing costs.

Planning and Development Services

10,962

50,148

39,186

78.1%

39,186

10820

Strategic Planning

2,142

13,092

10,950

83.6%

10,950

The variance YTD is essentially due to holistic Consultancy budget being allocated across the 12-month period. Strategic Planning is subject to competing demands and project prioritisation (also timing delays etc. due to consultancy periods, peak authority feedback or processes and lack of availability on occasion of specialised consultant assistance). Appointment of consultants or other anticipated strategic expenditures are always difficult to predict on that basis.     

11170

Meelup Regional Park

91

13,220

13,129

99.3%

13,129

The Environmental Services staff have recently relocated from Environmental Services in P&DS to the Parks and Gardens area within EWS.  During this time it has required adjustments in physical location, reporting and accounting requirements.  The observed variance will be reconciled once all of these adjustments have been completed and work prioritised within the new structure.

Engineering and Works Services

408,062

503,697

95,635

19.0%

95,635

12620 & 12621

Rural & Urban Tree Pruning

12,628

38,375

25,747

67.1%

25,747

The majority of rural tree pruning valued at $330,000 representing 94% of the annual budget is scheduled to be completed by the end of November 2021. Rural Road verges to be pruned are prioritised based on the time since last pruning, inspections, volume/ type of traffic and many other considerations. Planning is under way with $77,000 in costs already committed to engage qualified contractors. Priority has been given to storm damage clean-up, meaning works will occur later than scheduled.         


 

Various

Bridge Maintenance

830

52,112

51,282

98.4%

51,282

Bridge Maintenance works are largely scheduled to occur post-Christmas when water flows are at their lowest, planning of these works is underway. Works scheduled in 20/21 were withheld due to May 2020 storms and some of the budget subsequently carried over.

Various

Building Maintenance

91,369

53,948

(37,421)

(69.4%)

(37,421)

The majority of this variance has derived from the receipting and payment of high value cleaning invoices from the 20/21 financial year in July 2021, due to missing the cut off for receipting in the correct financial year.

Various

Waste Services

25,281

80,517

55,236

68.6%

55,236

The postponement of the FOGO trial has reduced costs, and a Cleanaway invoice for the monthly recycling was delayed.

Various

Roads Maintenance

65,394

41,068

(24,326)

(59.2%)

(24,326)

Road Maintenance activities are generally greater in the first five months of the year as the City’s maintenance and construction crews focus on maintenance grading, road shoulders maintenance, road surface repair and drainage maintenance etc. There has been an overspend to budget mostly attributable to greater than anticipated works in relation to storm damage clean-up activities contributing to the year to date variance.      

5280

Transport - Fleet Management

100,157

113,427

13,270

11.7%

13,270

Although fuels and oils are overspent due to an earlier billing cycle from suppliers than expected, the underspend in vehicle registrations (due to delays in payments of the registrations), has more than offset this, leading to an overall positive variance in Materials & Contracts as at YTD July.

Various

Other Infrastructure Maintenance

77,405

91,798

14,393

15.7%

14,393

This category encompasses the consolidation of almost 100 individual Cost Codes representing a unique assortment of services delivered right across the City. It includes things like: event support; boat ramp maintenance; cemetery maintenance; maintenance at the Libraries and GLC; caravan park maintenance; street lighting installation; the foreshores; the CBD’s; cycle-ways and footpaths etc. The $14K YTD expenditure variance to budget is considered minor and is net of many variances both under and over variance.

 

6.      Utilities

This category includes electricity, gas, water, sewerage, office telephones, mobiles and internet costs.  The billing cycle for some of these is bi-monthly or quarterly, and when the actual supplier invoicing is delayed it becomes difficult to align budget timing with actual costs. Utilities are $29K behind the YTD budget, which is reflective of these issues.


 

7.      Other Expenditure  

$310K, or 48.9%, 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

$

Finance and Corporate Services

148,445

64,688

(83,757)

(129.5%)

(83,757)

10221/27/

28/29/30

Finance & Borrowing Program 04/11/12/13/14

100,095

 -

(100,095)

(100.0%)

(100,095)

Notification of the second bi-annual payment of the indicative guarantee for the City’s borrowings through the WA Treasury Corporation, for the 20/21 financial year, was not received by the end of June, so ended up being processed in July.

Community and Commercial Services

159,215

554,523

395,308

71.3%

395,308

10530

Events & Cultural Services Administration (formerly Community Services Administration)

118,000

 -

(118,000)

(100.0%)

(118,000)

The budget for all Events is now contained under 10558.  This CinefestOz payment will be moved in August.

10543

Community Development

 -

62,342

62,342

100.0%

62,342

This relates to the first round of Community Assistance Program applications. The closing date was extended out into August so it is likely that successful applications will be funded in September but only 80% of the total applied for with the remaining 20% upon significant progress and/or acquittal.

10558

Events

 -

207,626

207,626

100.0%

207,626

Expenses relating to events such as CinefestOZ have been costed to an older account structure and will be corrected during August. A number of other expenses have not yet been paid as the event holders have not yet invoiced the City.

10567

CinefestOZ

38,000

 -

(38,000)

(100.0%)

(38,000)

The budget for all Events is now contained under 10558.  This will be moved in August.

10634

Business Support Program

 -

11,925

11,925

100.0%

11,925

Final acquittals of the support program yet to be received.

11151

Airport Operations

 -

191,676

191,676

100.0%

191,676

Marketing activities continue to be delayed due to the postponement of Jetstar RPT services as a result of COVID restrictions/lockdowns etc. in the Eastern States.

11156

Airport Development Operations

 -

74,275

74,275

100.0%

74,275

At the time of setting the budget the timing for the final carried over payments related to a noise mitigation project were not known. $148K is estimated to be remaining in total, split over three payments in September, November and January.  As such, there will be budget timing variances until these payments are completed.

 


 

8.      Non-Operating Grants, Subsidies & Contributions  

The negative variance of $2.45M is mainly due to the items in the table below. It should be noted that any negative variance in this area will approximately correlate to an offsetting positive underspend variance in a capital project tied to these funding sources. This can be seen in the section below that outlines the capital expenditure variances.

Revenue Code

Revenue Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Engineering and Works Services

40,000

2,488,229

(2,448,229)

(98.4%)

(2,448,229)

B9407

Busselton Senior Citizens – Developer Cont. Utilised

 -

111,750

(111,750)

(100.0%)

(111,750)

B9591

Performing Arts Convention Centre – Federal Capital Grant

 -

1,138,500

(1,138,500)

(100.0%)

(1,138,500)

C0053

Car Parking - Rear of Hotel Site 1 – Developer Contributions

40,000

 -

40,000

100.0%

40,000

F0112

Causeway Road Shared Path – State Capital Grant

 -

40,000

(40,000)

(100.0%)

(40,000)

S0048

Bussell Highway – Developer Cont. Utilised

 -

200,000

(200,000)

(100.0%)

(200,000)

S0076

Kaloorup Road (Stage 1) – Main Roads Direct Grant

 -

224,400

(224,400)

(100.0%)

(224,400)

S0077

Ludlow-Hithergreen Stage 2 Reconstruct & Widen – MR Capital Grant

 -

96,000

(96,000)

(100.0%)

(96,000)

S0078

Sugarloaf Road –

State Capital Grant

 -

321,599

(321,599)

(100.0%)

(321,599)

S0321

Yoongarillup Road - Second Coat Seal –

MR Capital Grant

 -

100,000

(100,000)

(100.0%)

(100,000)

S0331

Barracks Drive Spray Seal – MR Capital Grant

 -

130,980

(130,980)

(100.0%)

(130,980)

S0332

Inlet Drive Spray Seal –

MR Capital Grant

 -

47,000

(47,000)

(100.0%)

(47,000)

S0333

Chapman Crescent Spray Seal – MR Capital Grant

 -

78,000

(78,000)

(100.0%)

(78,000)

 


 

9.      Capital Expenditure  

As at 31 July 2021, there is an underspend variance of 88.52%, or $4.01M, in total capital expenditure, with YTD actual at $521K against the YTD budget of $4.53M. 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

$

Buildings

83,477

2,027,868

1,944,391

95.9%

1,944,391

B9614

Dunsborough Lakes Sporting Precinct-Pavilion/Change room Facilities

 -

25,000

25,000

100.0%

25,000

There has been nil expenditure against B9614 to date as the works have not yet commenced. The contract for Pavilion/Change room design is to be awarded in September 2021, with construction estimated to commence in April 2022.

B9300/1/2

Aged Housing

Capital Improvements

 -

50,000

50,000

100.0%

50,000

Budgeted works were proposed to separate power and drainage servicing Winderlup Court and Winderlup Villas.  Whilst the power requirements are not triggered until the new conditional land title lots are created, the intention was to progress with this anyway.  The procurement process elicited one quotation only and one suggestion for an alternative method which could save money. This is being progressed and expenditure will be incurred if the proposal is viable and suitable.

B9407

Busselton Senior Citizens

 -

111,750

111,750

100.0%

111,750

Roofing upgrade works were planned to be completed July 2021, but were postponed due to unsuitable weather. Works have now commenced and estimated completion / full value claim will occur October 2021.

B9591

Performing Arts Convention Centre

4,948

1,535,043

1,530,095

99.7%

1,530,095

Works have been put on hold pending a Council decision whether the project continues and if so in what scope capacity.  Council is awaiting the outcome of further community consultation and possible revised tenders before making this decision.

B9605

Energy Efficiency Initiatives (Various Buildings)

74,400

42,625

(31,775)

(74.5%)

(31,775)

Works that were planned in May/June to replace the existing lighting at the Busselton Library with LED’s were delayed due to the availability of contractors.  These works valued at $74,000 were subsequently completed and paid for in July 2021.    

B9611

Smiths Beach

New Public Toilet

 -

125,000

125,000

100.0%

125,000

Project commencement was delayed due to changes to the project scope as a result of potential changes to size of the toilet facilities (yet to be resolved) and investigations into the capacity of the existing septic system/upgrade to an ATU system to accommodate these changes. We have also encountered long lead times with consultancy and environmental applications / approvals.


 

B9612

Churchill Park

Renew Sports Lights

2,000

106,425

104,425

98.1%

104,425

Works were planned to take place in July 2021, however due to a budget increase of $73K from CSRFF grant funding, the project scope is now being re-scoped.

B9711

Busselton Airport – Building

 -

12,200

12,200

100.0%

12,200

Small capital works projects that were planned to be completed prior to Jetstar flights commencing. These have been delayed due to the continuing deferment of the commencement of RPT flights.

B9717

Airport Construction - Existing Terminal Upgrade

 -

19,825

19,825

100.0%

19,825

Invoicing in relation to the retention monies owing to Pindan for works completed has not been received.

Plant & Equipment

31,639

60,000

28,361

47.3%

28,361

10372

Dunsborough Cemetery

 -

20,000

20,000

100.0%

20,000

The budget is for maintenance trailers for the cemetery, both for grave shoring equipment and watering equipment, as well as fencing and turf upgrades. The delay in procurement of these items is due to current workloads of relevant staff and other projects taking a higher priority to date.  Suitable specifications have now been developed and quotes are being sought.

10540

Recreation Administration

 -

40,000

40,000

100.0%

40,000

The budget relates to a vehicle for the recently created Manager position. Vehicle pricing and availability is still being investigated and delays in the delivery of light vehicles is ongoing.

11403

Plant Purchases (P11)

31,639

 -

(31,639)

(100.0%)

(31,639)

Delivery of vehicles is being hampered by COVID-19 and a boom in sales caused by various Government stimulus measures.

Furniture & Office Equipment

49,348

133,225

83,877

63.0%

83,877

10250

Information & Communication Technology Services

28,200

 -

(28,200)

(100.0%)

(28,200)

The variance as at July YTD is mainly due to a re-allocation of new software licence that was erroneously allocated against operational expenses.  This was not foreseen when the original budget was prepared.

Also, at the time of budget preparation, an initial priority list for IT is collated, but it is not possible to determine at that time when and to what extent these priorities will eventually be undertaken.  This is due to numerous competing and higher priority projects and activities being scheduled over the top of this initial list.  As such there will be many seemingly odd budget timing variances.

10380

Busselton Library

21,148

 -

(21,148)

(100.0%)

(21,148)

The children’s area fit-out was completed and invoiced sooner than when the carry-over budget was planned for in August.

10558

Events

 -

100,000

100,000

100.0%

100,000

The budget July YTD represents half of the carry-over from the 20/21 year for the electronic billboard. The tender has closed with three responses, all of which have come in over the forecast budget.  Options on how to proceed are currently being investigated and will be discussed with MERG.

10590

Naturaliste Community Centre

 -

13,300

13,300

100.0%

13,300

Budget is for fencing to accommodate vacation care program and purchase of replacement fitness equipment.  Works to be finalised and PO’s raised this month, with a plan to expend in August/September.


 

B1350

Churchill Park-

Other Buildings

 -

13,225

13,225

100.0%

13,225

The expense relates to the storage facility project. Discussions are still progressing with the Stakeholders, delaying construction until a later date.

Infrastructure By Class

355,967

2,309,172

1,953,205

84.6%

1,953,205

Various

Roads

64,367

588,834

524,467

89.1%

524,467

92% of the YTD variance is attributable to the following;

•          Peel & Queen Street Roundabout Service Relocation $203,500 under budget YTD; Tender for Civil works is out to Market.

•          Bussell Highway Improvements under spent to budget by $111,775 being carried over budget from prior year; costs incurred in early August contra out this variance. 

•          Sugarloaf Road $100,500 under spent to budget; works are preliminarily scheduled to start in March 2022, thus the budget is not reflective of works scheduling prepared post budget formulation. 

•          Barnard Park East Foreshore Stage 2 Capital Works are under spend to budget by $66,667; Tender has been awarded with works to commence shortly.

Various

Car Parks

23,412

303,276

279,864

92.3%

279,864

82% of the variance is attributable to the following project:

•          Dunsborough Lakes Sporting Precinct (Stage 1) – Car parking under spent to budget by $133,334; stage 2 works not scheduled to commence until the new calendar year.

•          Barnard Park East Foreshore Car Parking $95,137; Tender has been awarded with works to commence shortly.

Various

Footpaths & Cycleways

(15,344)

206,008

221,352

107.4%

221,352

The majority of this variance is associated with the carried forward Buayanyup Drain Shared Path project where completion has been delayed due to wet weather. The variance will increase into the August period or until the project can recommence. Please note that the credit figure showing is due to the reversal of year end accruals of purchase orders.  No invoices were received in July to offset, and they were not re-accrued, as either the remaining part of the PO’s were cancelled, or the dissections were changed.

Various

Parks, Gardens & Reserves

246,036

1,143,519

897,483

78.5%

897,483

85% of the variance is attributable to the following project;

·        Mitchell Park Upgrade - $389,300

·        Dunsborough Lakes Sporting Precinct - $181,000

·        Barnard Park East Foreshore Landscaping - $197,000

Various

Regional Airport & Industrial Park Infrastructure

37,497

67,535

30,038

44.5%

30,038

The variance is primarily due to a delay in the timing on the payment of carpark payment shelters.

 

10.   Proceeds From Sale of Assets  

YTD there have been no proceeds from sale of assets recorded against the YTD budget of $39K.  This is due to the continuing delays in delivery of acquisitions, and the associated transfer to auction of the vehicles being replaced. 

 

11.   Repayment of Capital Leases  

Lease payments are $22K less than budgeted YTD, as one lease budgeted to be paid in July was not invoiced until August.


 

12.   Transfer to Restricted Assets  

There is a YTD variance in transfers to restricted assets of $1.74M as there is no budget for this item.

 

At the time of budgeting it is not possible to predict what grants will be received in what timeframe, nor when they will be spent and hence potentially transferred to restricted assets (or unspent portions thereof). The following grants, totaling $1.53M, have been received and transferred to restricted assets for which there was no budgeted transfer:

·        $44K for the Causeway Rd Shared Path Project from the Department of Transport;

·        $1.4M for various roads projects from Main Roads, State Blackspot Fund and the Regional Roads Program;

·        $80K for the Dunsborough youth space project from the Department of Primary Industries and Regional Development; and

·        $54K from Lotterywest for the Strengthening & Adapting Organisations program.

 

Developer contributions, deposits and bonds are inherently hard to predict and budget for. An annual amount of $22K was budgeted for later in the year, however over $208K has been received YTD, with $109K for road works bonds and $94K for caravan park deposits.

 

13.   Transfer to Reserves

$1.6M less than budget was transferred to reserves as at YTD July.  Although the transfers are still planned to occur in accordance with the annual budgeted amount, the transfers in July were largely postponed due to the time lag between budget adoption, raising of rates, and the eventual actual collection of rates.  Every year this lag creates a cash flow “pinch-point” that is usually addressed by deferring the transfer of cash from muni to the reserves for one month.

 

14.   Transfer from Reserves

YTD there has been $2.1M transferred from reserves into the Municipal Account, compared to a budget of $1.3M. The $800K discrepancy is due to the same reasons outlined above for Transfers to Reserves i.e. some transfers for substantively completed projects were brought forward to reimburse the municipal account.

Investment Report

Pursuant to the Council’s Investment Policy, a report is to be provided to the Council on a monthly basis, detailing the investment portfolio in terms of performance and counterparty percentage exposure of total portfolio. The report is also to provide details of investment income earned against budget, whilst confirming compliance of the portfolio with legislative and policy limits.

 

As at 31 July 2021, the value of the City’s invested funds totalled $71.4M, down from $77.4M as at 30 June 2021. This was mainly due to the need to provide funds for operational activities during July, prior to the receipt of rate income commencing in August.

 

The balance of the 11am account (an intermediary account which offers immediate access to the funds compared to the term deposits and a higher rate of return compared to the cheque account) decreased from $9.5M to $5.5M.    

 

During the month of July, five term deposits totalling the amount of $17.5M matured. One deposit was closed totalling $2.0M to provide funds for standard operations.  Remaining deposits were renewed for a further 178 days at 0.32% on average.

 

The official cash rate remains steady for the month of July at 0.10%.  This will have a strong impact on the City’s interest earnings for the foreseeable future.

 

Chief Executive Officer – Corporate Credit Card

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

 

Date

Payee

Description

$ Amount

9/07/21

Edible Blooms Pty Ltd

Get Well Gift

$91.90

15/07/21

Local Government Professional Australia WA

*2021/22 Membership – M. Archer

$531.00

15/07/21

Local Government Professional Australia WA

*2021/22 Membership – S. Pierson

$531.00

15/07/21

The Bayview Bar Bunbury

SW CEO’s Lunch – Bunbury

$27.00

25/07/21

Virgin Australia

Credit – Duplicate Seat Charge

-$55.00

26/07/21

Shelter Brewing Co.

CEO/Mayor Lunch –

City Of Busselton & City Of Bunbury

$142.00

 

 

TOTAL

$1,267.90

* Funding from CEO’s professional development allowance.

 

Statutory Environment

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

Relevant Plans and Policies

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

Financial Implications

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

Stakeholder Consultation

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

Risk Assessment

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

Options

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

CONCLUSION

As at 31 July 2021, the City’s net current position stands at $647K. The City’s financial performance is considered satisfactory, and cash reserves remain strong.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

 


Council

32

22 September 2021

12.2

Attachment a

Investment Report - July 2021

 


Council

47

22 September 2021

12.2

Attachment b

Financial Activity Statement - July 2021

 

















Council                                                                                      52                                                         22 September 2021

12.3           Finance Committee - 8/9/2021 - BUDGET AMENDMENT REQUEST - AIRPORT DEVELOPMENT PROJECT

STRATEGIC THEME

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

STRATEGIC PRIORITY

3.4 Develop aviation opportunities at the Busselton Margaret River Airport.

SUBJECT INDEX

BMRA

BUSINESS UNIT

Community and Commercial Services

REPORTING OFFICER

Director, Community and Commercial Services - Naomi Searle

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   Budget Amendment

 

This item was considered by the Finance Committee at its meeting on 8/9/2021, the recommendations from which have been included in this report.

 

COMMITTEE RECOMMENDATION

That the Council endorse:

1.         The following requested budget amendment, recognising the income is a result of transfers from Restricted Assets:

Reference Item #

Description

 

 

Project Code

Net Increase in Revenue

Net Additional Expenditure

Net Impact on Operational Budget

Net Impact on Cash

Net Impact on Reserves

1

Decrease to Airport Construction, Stage 2, Landside Civils & Services Infrastructure

 

C6087

-

(61,228)

-

61,228

-

Transfer to Restricted Cash

 

(61,228)

-

-

-

61,228

2

Decrease to Existing terminal upgrade

B9717

-

(35,965)

-

35,965

-

Transfer to Restricted Cash

 

(35,965)

-

-

-

35,965

3

Increase to Airport construction Stage 2, Noise Management Plan

C6091

-

163,377

-

(163,377)

-

Transfer from Airport Noise Mitigation Reserve

 

 

 

 

163,377

 

-

 

-

 

-

 

(163,377)

4

Increase to Airport Development – Project Expenses

 

C6099

-

 

101,100

 

-

(101,100)

-

Transfer from Restricted Cash

 

101,100

-

-

-

(101,100)

 

2.         The net budget amendment, as outlined within this report and in accordance with section 6.8(1) of the Local Government Act 1995, results in a nil impact on the 2021/22 annual operating budget and a nil impact on the budgeted net current position.

 

OFFICER RECOMMENDATION

That the Council endorse:

1.         The following requested budget amendment, recognising the income is a result of transfers from Restricted Assets:

Reference Item #

Description

 

 

Project Code

Net Increase in Revenue

Net Additional Expenditure

Net Impact on Operational Budget

Net Impact on Cash

Net Impact on Reserves

1

Decrease to Airport Construction, Stage 2, Landside Civils & Services Infrastructure

 

C6087

-

(61,228)

-

61,228

-

Transfer to Restricted Cash

 

(61,228)

-

-

-

61,228

2

Decrease to Existing terminal upgrade

B9717

-

(35,965)

-

35,965

-

Transfer to Restricted Cash

 

(35,965)

-

-

-

35,965

3

Increase to Airport construction Stage 2, Noise Management Plan

C6091

-

163,377

-

(163,377)

-

Transfer from Airport Noise Mitigation Reserve

 

 

 

 

163,377

 

-

 

-

 

-

 

(163,377)

4

Increase to Airport Development – Project Expenses

 

C6099

-

 

101,100

 

-

(101,100)

-

Transfer from Restricted Cash

 

101,100

-

-

-

(101,100)

 

2.         The net budget amendment, as outlined within this report and in accordance with section 6.8(1) of the Local Government Act 1995, results in a nil impact on the 2021/22 annual operating budget and a nil impact on the budgeted net current position.

 

EXECUTIVE SUMMARY

This report seeks Council approval of budget amendments as detailed in this report. Adoption of the officer recommendation will result in a net neutral impact on the City’s budgeted net current position.

 

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 detailed in the attachment for the reasons specified.

OFFICER COMMENT

Council adopted its 2021/2022 Municipal budget on Monday 26 July 2021 with a budget surplus position.  Since then, officers have identified budgets that require adjustment.  It is good management practice to revise the adopted budget when it is known that circumstances have changed. In keeping with this practice, budgets are reviewed on a monthly basis.

 

Amendments to the budget are categorised into the three key types as listed below:

1.         Adjustments impacting the budget balance or net position of the City; relatively uncommon type.

2.         Adjustments with no impact on the budget balance; most common amendment type.

3.         Adjustments to transfer budget between capital and operating undertakings; relatively uncommon type.

 

The adjustments that are required for this budget amendment are of the type 2 category above, being an adjustment with no impact on the budget balance. As part of the end of financial year budget reconciliation process, it was identified that the 2021/22 Airport Development Project budget was underestimated and as such requires amendments as outlined in the Financial Implications section of this report.  The amendments will require a budget expense increase which will be offset by an increase in transfers from restricted asset Government Grant and Reserves. 

After making the above adjustments, the net Municipal budget position remains unchanged.

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 multiple plans and policies that support the proposed budget amendments.

Financial Implications

The details of the financial implications of these recommendations is shown in the attachment and a summary below. The City has remaining State Government grant funding as part of the airport development project. Each proposed budget amendment will be fully funded from grant funding already received so will have a net neutral impact on the City’s Municipal budget. The amendment will enable the completion of outstanding project works as described the attachment.

 

Reference Item #

Description

 

 

Project Code

Net Increase in Revenue

Net Additional Expenditure

Net Impact on Operational Budget

Net Impact on Cash

Net Impact on Reserves

1

Decrease to Airport Construction, Stage 2, Landside Civils & Services Infrastructure

 

 

C6087

-

(61,228)

-

61,228

-

Transfer to Restricted Cash

 

(61,228)

-

-

-

61,228

2

Decrease to Existing terminal upgrade

B9717

-

(35,965)

-

35,965

-

Transfer to Restricted Cash

 

(35,965)

-

-

-

35,965

3

Increase to Airport construction Stage 2, Noise Management Plan

 

C6091

-

163,377

-

(163,377)

-

Transfer from Airport Noise Mitigation Reserve

 

 

163,377

-

-

-

(163,377)

4

Increase to Airport Development – Project Expenses

 

C6099

-

101,100

 

-

(101,100)

-

Transfer from Restricted Cash

 

101,100

-

-

-

(101,100)

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 decide not to proceed with the proposed budget amendment request.

CONCLUSION

Council’s approval is sought to amend the budget as per the details contained in this report.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

If the officer recommendation is endorsed, the budget amendment will be processed within a month of being approved.

 


Council

53

22 September 2021

12.3

Attachment a

Budget Amendment

 


Council                                                                                      57                                                         22 September 2021

12.4           Finance Committee - 8/9/2021 - REVISION TO 2021/22 WASTE FEES AND CHARGES

STRATEGIC THEME

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

STRATEGIC PRIORITY

1.5 Implement best practice waste management strategies with a focus on waste avoidance, reduction, reuse and recycling.

SUBJECT INDEX

Fees and Charges

BUSINESS UNIT

Waste and Fleet Services

REPORTING OFFICER

Manager Waste and Fleet Services - Mark Wong

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

Attachment a   Proposed Revised Schedule of Waste Fees & Charges

 

This item was considered by the Finance Committee at its meeting on 8/9/2021, the recommendations from which have been included in this report.

 

COMMITTEE RECOMMENDATION

That the Council endorses the revisions to the Waste Disposal and Sanitation Fees and Charges as detailed in Attachment A – Proposed Draft “Revised Schedule of Waste Disposal and Sanitation Fees and Charges - 2021/22”, effective from and including 24 October 2021, subject to the following:

(a)  An additional charge be added for compactor vehicles between 3 and 10 cubic metres carrying General Waste.

(b)  The correction of the ‘Electronic Waste – per item’ fee from $4.50 (exc. GST) to $4.55 (exc. GST).

 

Reasons:       The committee sought an additional charge for compactor vehicles between 3 and 10 cubic metres carrying General Waste, and the correction of the ‘Electronic Waste – per item’ fee exclusive of GST.

 

OFFICER RECOMMENDATION

That the Council endorses the revisions to the Waste Disposal and Sanitation Fees and Charges as detailed in Attachment A – Proposed Draft “Revised Schedule of Waste Disposal and Sanitation Fees and Charges - 2021/22”, effective from and including 24 October 2021.

 

EXECUTIVE SUMMARY

According to regulation 5(2) of the Local Government (Financial Management) Regulations 1996, a local government is required to review its fees and charges regularly, not less than once in every financial year. This report provides Council with a recommendation to revise the Waste Disposal and Sanitation Fees and Charges – 2021/22, further to a review of the City’s strategic waste direction, existing commercial practices and review of commercial rates.

 

BACKGROUND

Each year, the City sets its fees and charges with the view of implementing charges as of 1 July in any given year. Council previously reviewed its fees and charges schedule in April 2021 in preparation for its 2021/22 financial year. These were subsequently adopted at the Special Meeting of Council held in July when the Annual Budget was also adopted (C2107/140).

 

Since this time, City officers within the Waste and Fleet business unit have reviewed and made recommendations to areas requiring additional amendments. In order for any revisions to the 2021/22 schedule of Waste Disposal and Sanitation Fees and Charges to be effective from the proposed 24 October 2021 date, Council is required to adopt the revised schedule at its Ordinary Council Meeting on 22 September 2021, in order to comply with any statutory public notice periods, including Gazettal(s) if required.

 

In setting fees and charges, the City is to consider accounting for matters such as the true cost to provide a service, current commercial market conditions and future needs of the community, while ensuring as little legacy issues as possible. Officers have reviewed the price of the disposal of commercial waste to be more accurately reflected for the ongoing continued use of the waste facilities and the amount required to be charged. This will be aligned to the Polluter Pay (user pays) concept and recouping the actual cost of operating both Waste Management Facilities through the Gate Fee for commercial disposal.

OFFICER COMMENT

The objective of increasing the Dunsborough Waste Facility (DWF) Gate Fees is to encourage commercial customers to sort and segregate all their waste, with only the residual amounts, after they have exhausted all avenues, going to landfill.

 

An increased price is a mechanism to encourage commercial customers to weigh up the financial implications of using the DWF in Western Cape Drive, or if it was more viable to consider using the other landfill facilities in the region instead.

 

Officers explored the various fee amounts from other Local Government Authorities (LGAs) to better understand what the tipping point is to facilitate that behaviour change. This price increase was seen as a balance between charging to adequately to reflect the true commercial landfill airspace and operation cost and sufficient enough for users to rethink their practices, and use other landfills, or even other appropriate sites to dispose their loads, instead of paying the increased DWF Gate fee.

 

It is proposed that a split pricing mechanism to segregate the mainstream commercial waste companies, from the smaller, more localised companies; hence the difference in charges between a Compacted Load and an uncompacted Merrell Bin load.

 

The following provides an overview of noteworthy instances where an increase has been applied, whilst also discussing, where relevant, newly proposed fees and charges.

Waste Disposal and Sanitation Fees

·     General

A separate charge has been introduced to differentiate the compacted loads with ones that come in Merrell Bins, along with an introduction for vehicles and trailers to be unmarked in order to qualify for the domestic charges. Other inclusions include fees that have been increased above the 2021/22 adopted amount, primarily to ensure consistency between the 2 facilities, as a result of the increase to General Waste charges.

 

·     Unsorted Mixed Commercial and Industrial Waste

A new category has been made to provide clarity, with the wording altered accordingly.

 

·     Other Miscellaneous Charges

A charge for recycling, electronic waste has been introduced as a result of the cease in funding subsidies from external, federal government sources. A separate fee has been introduced to offset the Front End Loader cost when wet hired to load/unload material.

 

·     Commercial Waste – Dunsborough Only

The charges for the disposal of Liquid Waste / Sewerage has been increased in line with the landfill charges. Pricing for Special Burials and Asbestos have been synchronized to reflect the operational requirements to properly dispose of such material.

Statutory Environment

Sections 6.16 to 6.19 of the Local Government Act 1995 (the Act) refer to the imposition, setting the level of, and associated administrative matters pertaining to fees and charges. The requirement to review fees and charges on an annual basis is detailed within Regulation 5 of the Local Government (Financial Management) Regulations 1996.

 

Section 6.16 of the Act states that a local government may impose and recover a fee or charge for any goods or services it provides or proposes to provide, other than a service for which a service charge is imposed.

 

Section 6.17 of the Act further states that in determining the amount of a fee or charge for goods and services, a local government is to take in to consideration the following factors:

a)         The cost to the local government of providing the service or goods;

b)        The importance of the service or goods to the community; and

c)         The price at which the service or goods could be provided by an alternative provider. 

 

Section 6.18 of the Act clarifies that, if the amount of any fee or charge is determined under another written law, then a local government may not charge a fee that is inconsistent with that law.

 

Section 6.19 of the Act requires the giving of local public notice re the introduction of a fee and charge post adoption of the annual budget, with notice required of the intention to do so and the date from which it is proposed the fees or charges will be imposed.

Relevant Plans and Policies

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

Financial Implications

There are financial implications associated with the officer recommendation. In the 12 month period from 1 July 2020 to 30 June 2021, the DWF processed 9,220 tonnes of commercial waste, raising over $550,000 in revenue.

 

Although the $20 - $30 per tonne price increase equates to approximately $184,000 to $276,000 additional revenue mathematically, that amount is not expected in reality. The increased gate fee is a means to actively discourage existing clients from using the DWF, and this would have an adverse impact on the revenue received through the gate.

 

The district has approximately 1,500 properties that are outside of the collection area and do not receive a kerbside collection service. To compensate for this, these properties, along with a further 1,500 or so vacant blocks of land, are entitled to 8 residential Tip Passes instead. Presently, our weighbridge records indicate that the tip pass usage rate is low. However, there is a likelihood the uptake rate will increase if the commercial service providers, pass on the increased fee to the community who engage them.


 

Stakeholder Consultation

As part of the review process, price comparisons with other local government authorities, in addition to a review of prices offered by alternate service providers (pursuant to section 6.17 of the Act) occurred. Furthermore, in-person meetings with key commercial users of the Dunsborough Waste Facility are taking place. 

Risk Assessment

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

Community Dissatisfaction

Risk Category

Risk Consequence

Likelihood of Consequence

Risk Level

Reputation

Moderate

Possible

Medium

Options

As an alternative to the proposed recommendation the Council could recommend further amendments to the Draft Revised Schedule of Waste Disposal and Sanitation Fees and Charges - 2021/22 as it deems appropriate.

CONCLUSION

This revision of the previously adopted fees and charges, have been reviewed in line with the requirements of the Local Government Act 1995 and other relevant legislation as applicable. Consequently, it is recommended that Council endorses the amendments to the 2021/22 Waste Disposal and Sanitation Fees and Charges as proposed.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Following adoption by the Council at its Ordinary Council Meeting on Wednesday 22 September 2021 the Revised Schedule of Waste Disposal and Sanitation Fees and Charges - 2021/22 will become effective from and including 24 October 2021.


Council

59

22 September 2021

12.4

Attachment a

Proposed Revised Schedule of Waste Fees & Charges

 



Council                                                                                      67                                                         22 September 2021

12.5           Finance Committee - 8/9/2021 - REVIEW OF OVERALL ASSET MANAGEMENT PLAN

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

Asset Management

BUSINESS UNIT

Engineering and Facilities Services

REPORTING OFFICER

Asset Coordinator - Daniel Hall

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

Attachment a   Overall AMP 2021

Attachment b    Asset Overview

Attachment c    Proposed Renewal Funding

 

This item was considered by the Finance Committee at its meeting on 8/9/2021, the recommendations from which have been included in this report.

 

COMMITTEE RECOMMENDATION

That the Council:

1.         Adopts the Overall Asset Management Plan 2021 (Attachment A) with the inclusion, for information purposes, of a table with the replacement values of significant or non-managed assets.

2.         Utilises the information within the Overall Asset Management Plan 2021 to inform the preparation of the next Long Term Financial Plan.

3.         Endorses the development of a formal planning process for operations, maintenance and renewal funding for infrastructure assets from growth, to be submitted for Council adoption no later than the end of the 2021/2022 financial year.

 

Reasons:              The committee considered that extra information of significant or non-managed assets, while not part of the Asset Management Plan 2021, would assist in understanding the value of these particular assets.

 

OFFICER RECOMMENDATION

That the Council:

1.         Adopts the Overall Asset Management Plan 2021 (Attachment A).

2.         Utilises the information within the Overall Asset Management Plan 2021 to inform the preparation of the next Long Term Financial Plan.

3.         Endorses the development of a formal planning process for operations, maintenance and renewal funding for infrastructure assets from growth, to be submitted for Council adoption no later than the end of the 2021/2022 financial year.

 

 


 

EXECUTIVE SUMMARY

The purpose of this report is to adopt a revised Overall Asset Management Plan 2021 (AMP) for the City’s infrastructure assets. The AMP will assess the adequacy of planned Long Tern Financial Plan (LTFP) renewal funding for each asset type and recommend funding adjustments where appropriate. This is a network level assessment aimed at updating the renewal management strategy for assets ahead of the upcoming LTFP review for 2022/2023 – 2031/2032.

 

In addition to planning for the next 10 years, there is the need to determine likely factors that will affect future demand on the City’s infrastructure assets. This report provides discussion and recommendations on how best to allocate required additional operations, maintenance, and renewal funding for these assets.

 

BACKGROUND

The issue of assessing the adequacy of infrastructure asset funding has been discussed at a Council level as far back as 2007 when a Price Waterhouse Coopers report into local government financing indicated there was a national infrastructure funding backlog of $14.5 billion.

 

The City’s first overall asset management plan was adopted by the Council in June 2013. The plan was a culmination of a series of workshops held between staff and the Council to discuss any “funding gaps” that existed within each asset category.

 

For example, through an initial workshop in April 2013 and subsequent workshops in May 2013, the Council agreed in principle to include within the draft LTFP a 1 per cent rate increase per year over a period of 6 years (2013/14 – 2018/19) to bring the funding value for roads to 7%. This was to rectify the 50 year funding gap for the renewal of road infrastructure and provide funds to assist with major upgrades and new infrastructure. This additional funding has been instrumental in reducing the amount of intervention roads; as detailed within the plan.

 

The 2013 plan did not outline any funding increases required for other assets, but did note the need to increase renewal expenditure within existing expenditure levels.

 

Subsequent to 2013, the following plans have been developed and adopted by Council:

·        Drainage (2014),

·        Footpaths and Cycle Ways (2014),

·        Carparks (2016) and

·        Signs (2016).

 

Worth noting from these plans is the comment in the 2014 Drainage plan regarding future funding:

“Whilst no recommendations for increased funding are made within this DAMP (Drainage Asset Management Plan), it is perhaps prudent to note that future revisions are likely to recommend an increase in expenditure for Drainage assets.

 

Since 2013, the City has undergone some significant change in both the value of its infrastructure assets and also the type and criticality of the assets to be maintained. During this time also, the population of the City has grown by around 7,000 people, to a current population of around 40,000.

 

The growth of infrastructure has been as a result of continued property development within the City, as well as significant infrastructure construction by the Council. The overall net increase in replacement costs since 2013 is approximately $300M as shown in the table below.


 

Table 1 Increase in Asset Replacement Values

Asset Type

Replacement Value 2013

$

Replacement Value 2020**

$

Buildings

104,000,000

158,037,783

Carparks

10,177,724*

12,940,000

Footpaths and Cycleways

30,000,000

49,180,000

Parks and Gardens

25,000,000

74,390,000

Roads

284,000,000

409,051,484

Stormwater Drainage

69,000,000

103,850,000

Signs

2,300,000*

3,180,000

Street Lights

Not calculated

1,020,000

Coastal Infrastructure

8,000,000

19,513,444

Total

532,477,724

831,162,711

 

 

 

 

 

 

 

*Value Calculated in 2016.

**Final 2021 replacement values currently being finalised. Use of 2020 values in this context does not affect the recommendations contained within this report.

OFFICER COMMENT

Current Status Update

The AMP is an informing document for the LTFP with respect to required renewal expenditure for infrastructure assets. The various renewal management strategies outlined within the AMP are intended to provide guidance to the Council for determining ongoing asset renewal funding. The specific assets contained within the AMP are shown in the table below.

 

Table 2 Asset Types Covered Under This Plan

Asset Type

Buildings

Carparks

Footpaths and Cycleways

Parks and Gardens

Roads

Stormwater Drainage

Signs

Street Lights

Coastal Infrastructure

                                                                                                                                                            

 

 

 

                       

                                                                                                               

 

                                             

 

 

Busselton Jetty, Busselton Jetty Tourist Park and Busselton Margaret River Airport are subject to separate planning processes, noting their major renewal and upgrade requirements. Each of these facilities is renewed and upgraded via specific reserves, with plans reviewed and updated as required.

 

The Council has been proactively increasing infrastructure asset renewal expenditure since 2013 to keep pace with the growing asset base. Attachment B provides a summary ‘status update’ in terms of how asset replacement costs are tracking when measured against planned renewal expenditure. More detail is provided within each of the plans.

 

As Attachment B highlights, carparks and stormwater drainage are two asset types requiring some adjustments to the allocations. Other assets are considered to be adequate based on the assessment, provided a renewal priority is maintained. Planned adjustments to allocated funding are detailed within the financial implications section of this report.

 

Renewal Management Strategy

In addition to assessing renewal funding adequacy, the AMP also provides guidance on the ongoing renewal management strategy for each asset type. This renewal management strategy covers the upcoming LTFP planning period 22/23 – 31/32. The various renewal management strategies are summarised in Table 3 below.

Table 3 Renewal Management Strategies 22/23 – 31/32

Asset Type

Asset Renewal Management Strategy 22/23 – 31/32

Buildings

There is currently $32M worth of high profile buildings less than 10 years old.  All will age at around the same pace and required expenditure on these buildings will increase over time. The City needs to be ready for this with increased levels of Building Condition Reporting to ensure building degradation is accurately captured over time. Continuation of the buildings funding methodology is recommended with ongoing review and update of parameters to ensure correct amounts of funds are being set aside for building renewal for the short-medium term. Ongoing critical review of the existing asset portfolio to determine if any further rationalisation is required.

Carparks

Current planned renewal allocations into reserves should be reviewed for appropriateness and adjusted as required. Ongoing renewal of poor condition car parks is required.

Footpaths and Cycleways

Review of the intent of the Footpaths and Cycleways Funding Policy is required to ensure adequacy and currency, and in particular the split of new and renewal works.  A plan is recommended for the renewal of Bussell Highway footpaths (including undergrounding of power) over the next ten years.

Parks and Gardens

In order to be effective, the ongoing Renewal management strategy for 2022/23 – 2031/32 must be delivered with the following 4 elements in mind:

1.     Ongoing annual allocation of General Renewal funding within the LTFP to ensure that the poorest condition parks assets components can continue to be renewed. This will also ensure that small – mid-sized renewal projects can be undertaken as required.

2.     At least 1 annual renewal of POS or Coastal Node areas to ensure local community areas are receiving annual projects.

3.     Careful consideration of use of available renewal funds for new and major upgrade projects. Use of these funds affects the ability for renewal projects to be carried out in a timely manner.

4.     Funding mechanism to be embedded within the LTFP Planning process that allocates additional funding as required for newly constructed and donated assets.

Roads

Continued efforts to source additional external funding for programs such as commodity routes and Narrow Seal Country Roads.

Monitor and manage the total km of poor condition (8, 9, 10) roads to reduce this amount to less than 5% of the total road network. For current sealed roads (961km): no more than 50km of intervention roads – condition 8, 9 and 10. And for unsealed (258km) no more than 13km. The ultimate aim is to maintain better condition roads with simple, less expensive reseal treatments before they become more expensive rehabilitations and reconstructions.

Stormwater Drainage

It is recommended that the City plan for an increase in annual renewal expenditure to adequately plan for and implement drainage renewals and upgrades to older urban areas. This will encompass poor condition stormwater drainage as well as capacity and functionality. This should be undertaken in a staged manner to incorporate planning, data collection, modelling and renewal and upgrade works. This will be in addition to the ongoing targeted renewal of problem areas.

Signs

Signage assets require an updated condition assessment to verify current condition and functionality. Outcomes of this assessment will determine required renewals and upgrades between 2022/23 – 2031/31.


 

Street Lights

Progressive upgrade of all Street Lighting to LED.

Coastal

Ongoing monitoring and management of Coastal Infrastructure as per Coastal Management Program (2020 – 2030).

 

Assets from Growth - Factors Affecting Future Demand - 32/33 and Beyond

Strategic community planning

In June 2021, the Council adopted its Strategic Community Plan 2021-2031 (SCP). The SCP guides the strategic direction of the Council and helps to inform the Long Term Financial Plan and Corporate Business Planning.  It is an important document that outlines a clear vision for the District and guides the decisions and directions of Council.

The SCP contains strategic priorities for infrastructure that will contribute to the ongoing growth of the asset base and asset maintenance requirements. Any infrastructure that is upgraded or constructed as new between 2021 and 2031 will require maintenance and renewal beyond the current LTFP planning period.

Ongoing residential development

In conjunction with general population growth is the new residential developments located away from the town sites of Busselton, Dunsborough and Yallingup. Future residential developments in areas such as Ambergate, and continued growth in Vasse, Dunsborough Lakes and Provence will create the need for the duplication of services to accommodate new areas of population growth. Evidence of this can be seen in current LTFP planning which includes new sporting facilities planned for both Provence and Dunsborough Lakes over the current planning period.

 

Funding mechanisms for Assets from Growth

It is important that funding mechanisms for maintenance, operations and renewal are embedded within the LTFP and forward planning process to ensure that additional funding and resources can be allocated as required, for both newly constructed and donated assets. This will ensure that funding for growth can be assessed in the context of all activities across the Local Government and prioritised.

 

Workforce growth resulting from asset growth is covered under the City’s workforce planning process; and renewal funding for new building assets is already included in the LTFP planning process through the building funding methodology. The funding mechanisms outlined within the AMP cover future allocations for maintenance costs excluding staffing costs.

 

An effective funding mechanism must be evidence-based, structured in its timing, consistent in its application and open to review and update on a regular basis. These points are explained in more detail below:

 

Structured in its timing: Undertaken as part of annual review of the LTFP to inform future funding requirements. This will ensure that final balancing of the LTFP includes required funding for new assets.

 

Consistent in its application: A standardised funding approach should be developed that assigns agreed amounts of funding according to type and criticality of the asset. This will ensure that, as newly constructed and donated assets are accounted for as City managed assets, they are assigned appropriate ongoing funding. This should be automatic rather than arbitrary in nature.

 


 

Open to review and update on a regular basis: Property development in particular can speed up or slow down over the course of 12 months dependant on prevailing market conditions. This can also include changes to the planned assets to be constructed within a subdivision. Planning for management of these assets should be a live process that can be adjusted to reflect updated information on a regular basis. This is not a ‘set and forget’ process.

 

Evidence-based approach: The key to the effectiveness of this approach is the ability of the Council to make informed decisions about future funding requirements. These decisions need to be based on detailed justification to ensure they are appropriate. This should include type and quantity / amount of new assets to be managed as well as how they are planned to be managed based on importance throughout their lifecycle (i.e. Lifecycle Costing Analysis). This will dictate maintenance frequencies and also timing of minor and major renewals. Staff should ensure that the Council are provided with current and accurate information.

 

Formal Process to be developed

It is recommended that a formal planning process be developed to articulate the mechanics of how maintenance, operations and renewal of assets from growth are to be funded. This should include planned ‘drivers’ for cost of lifecycle activities, including maintenance frequencies, timing of minor and major renewals and desired service standard for each asset type.

 

It is also recommended that once agreed upon, the mechanisms for funding of assets from growth be accounted for within the annual review and update of the LTFP. 

Statutory Environment

The AMP has been prepared with reference to the State Government’s Integrated Planning Framework enforced through section 5.56(1) of the Local Government Act 1995 and which requires the local government to develop a “plan for the future”.  In brief this requires local governments to develop a strategic community plan that links community aspirations with the Council’s long term strategy and for local governments to develop a corporate business plan and linked resourcing strategies including a long term financial plan, asset management plans and a workforce plan.

Relevant Plans and Policies

The Officer Recommendation aligns to the adopted Asset Management Policy. The purpose of this Policy is to outline the principles which guide the City of Busselton in the management of its infrastructure assets, with the objective being to ensure they are well maintained and responsibly managed.

Financial Implications

Within the City’s LTFP, funding is allocated on an annual basis towards renewal of infrastructure assets. This funding was originally informed by the overall asset management plan developed in 2013, as well as subsequent adopted asset plans. The Council has also allocated additional renewal expenditure across asset classes within the LTFP at various points since 2013.

 

The AMP provides a summary of funds planned to be transferred to reserve for the purpose of renewing the various infrastructure assets over the course of the next ten years. Expenditure of these funds is then prioritised by individual asset management plans and allocated through each year’s annual budget.

The AMP highlights two asset types where the planned renewal allocations require some adjustment. As shown in Attachment B, Carpark assets have a high planned allocation relative to replacement value (4.98% p.a.), compared to Drainage which is relatively low (0.45% p.a.).

It is proposed that some of the Carpark funds be moved across to Drainage within the upcoming review of the LTFP. The proposed changes to renewal funding 22/23 – 31/32 for Carparks and Stormwater Drainage are shown in Attachment C. A summary is provided below.

Table 4 Summarised Renewal Funding Changes

Asset Type

Replacement Cost

$

Current Renewal
Funding 21/22 - 30/31

$

Current

% p.a.

Proposed Renewal

Funding

23/23 – 30/31

$

Proposed

% p.a.

Carparks

12,940,000

6,851,789

5.30%

1,774,858

1.49%

Stormwater

Drainage

103,850,000

4,624,172

0.45%

8,765,508

0.88%

 

The proposed changes as summarised above, reduce the percentage per annum of replacement costs from 4.98% down to 1.49% for Carparks and increases Drainage from 0.45% to 0.88%. It is not recommended that Carparks be reduced any further to ensure that annual renewal amounts can cover the cost of larger renewal based projects.

Funding of Assets from Growth

Elements of maintenance and renewal funding for assets from growth is already being provided for within the LTFP; however development of a formal process will provide a set of guidelines to follow.

The development of a formal process does not commit the Council to a set annual funding amount for assets from growth, but it does ensure that there is a structured and consistent funding mechanism in place where informed decisions of future funding can be made.

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 not to adopt the updated AMP at this juncture; however this may hinder the City’s integrated planning compliance and progression of effective asset management.

CONCLUSION

The AMP is one part of the integrated planning process and provide a valuable link between the day to day management of the assets and the long term planning documents relating to these assets.

They are prepared in the context of continuous improvement and as such, are subject to review and update to ensure their currency. They provide detailed information at a point in time and set the framework for ongoing management of infrastructure assets at the City of Busselton.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The implementation of the Overall Asset Management Plan would be effective immediately upon adoption of the officer’s recommendation.


Council

76

22 September 2021

12.5

Attachment a

Overall AMP 2021

 





















Council

88

22 September 2021

12.5

Attachment b

Asset Overview

 


Council

89

22 September 2021

12.5

Attachment c

Proposed Renewal Funding

 


Council                                                                                      96                                                         22 September 2021

12.6           Finance Committee - 8/9/2021 - CEO KPI - FINANCIAL SUSTAINABILITY PLAN

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

Financial Services

BUSINESS UNIT

Finance and Corporate Services

REPORTING OFFICER

Director Finance and Corporate Services - Tony Nottle

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

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

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   City of Busselton FSP Final Draft 1.9.2021

 

This item was considered by the Finance Committee at its meeting on 8/9/2021, the recommendations from which have been included in this report.

 

COMMITTEE RECOMMENDATION

That the Council:

1.         Receive and note the Financial Sustainability Plan update report as part of the Chief Executive Officer’s 2020/21 Key Performance Indicators;

2.         Endorses the recommendations contained within the Financial Sustainability Plan as detailed in Attachment A with the exception of part 3 of recommendation 2; and

3.         Notes the Financial Sustainability Plan in Attachment A as a guide for future planning.

 

Reasons:              The committee considered that the proposed ratios as identified by the WALGA Ratios Reference Group were sufficient and appropriate as a financial reporting measure and therefore the ratios identified in part 3 of recommendation 2 within the Financial Sustainability Plan were not required.

 

OFFICER RECOMMENDATION

That the Council:

1.         Receive and note the Financial Sustainability Plan update report as part of the Chief Executive Officer’s 2020/21 Key Performance Indicators;

2.         Endorses the recommendations contained within the Financial Sustainability Plan as detailed in Attachment A; and

3.         Notes the Financial Sustainability Plan in Attachment A as a guide for future planning.

 


 

EXECUTIVE SUMMARY

As part of determining the CEO’s key performance indicators (KPI) for the 2020/21 period, the Council and CEO agreed to establish a 3 year Financial Sustainability Plan (FSP) that outlined targets and measures which can be reported to the community on a regular basis.

 

This report provides an outline of the proposed FSP and the suggested measures, targets and actions from the specific recommendations made within the Plan. It is recommended that Council endorse those recommendations contained within the FSP to guide future planning, particularly around the City’s Long Term Financial Planning assumptions and modelling and Annual Budget development.

 

BACKGROUND

Over the 2019/20 financial year, concern was raised by members of the public surrounding the financial performance (based on the results of the 2018/19 Annual Report) of the City of Busselton based on the Financial Health Indictor (FHI) score achieved at year end. While the FHI has been acknowledged that it is not necessarily fit for purpose or an overly accurate measure of financial performance for local government, the concern was raised around the declining trend and comparison with other local governments.

 

Subsequently, Council considered this a key focus for the City in the ensuing period and established a KPI for the CEO in 2020 as follows:

 

1.            Financial Sustainability Plan (FSP)

 

a)         Prior to budget considerations, establish a 3 year financial sustainability plan outlining clear measures and agreed targets which can be reported on regularly to the community.  In developing the plan ensure the reviewed LTFP and financial health indicator score is considered.

 

b)         Prepare and present a model which shows the impact of financial decision on the agreed targets and FHI score in 2021/22.

 

The development of the plan was somewhat delayed due to the ongoing uncertainty of the Busselton Performing Arts and Convention Centre. This particular project would have a significant impact on the financial requirements of the City from both an operating, borrowing and capital construction point of view.

 

Additionally, during the 2020/21 financial year, the Office of the Auditor General (OAG) tabled 2 reports to Parliament. These reports provided specific recommendations to Parliament and also discussed the current review by the Department of Local Government Sport and Cultural Industries (DLGSC) into the ratios that are used to calculate the FHI of a local government.

Report

Date

Recommendation / Comment

Audit Results Report – Annual 2018-19 Financial Audits of Local Government Entities

11 March 2020

However, we note that DLGSC is reviewing the ratios. We support the intent to simplify this reporting, as some ratios are more robust than others. For example, the definition of ‘current ratio’ in the regulations excludes restricted assets and liabilities associated with restricted assets. This means that the ratio is directly affected by the amount of funds that management and council decide to transfer to and hold in reserves. This appears to render the ratio more complex than common business practice and may make it more difficult to compare different entities. Also, reporting the operating surplus ratio may be unnecessary as users of the financial report can get similar information about any deficit from the Statement of Comprehensive Income.

Audit Results Report – Annual 2019-20 Financial Audits of Local Government Entities

 

16 June 2021

Recommendation 1 –

The Department of Local Government, Sport and Cultural Industries (DLGSC) should assess whether the current financial ratios in the FM Regulations remain valid criteria for fairly measuring and reporting the performance of each LG entity. This could also include a simplification of LG entity reporting requirements for financial ratios, and review of the requirement under the FM Regulations for the auditor to report on any adverse trends in the ratios as part of the annual financial audit. (page 17)

 

The Western Australian Local Government Association (WALGA) also acknowledged the issues surrounding financial ratios, reporting and the calculation of FHI in the local government sector. Due to the concerns being raised by professionals and members regarding the appropriateness of these indicators as a reasonable benchmark, WALGA established a Local Government Financial Ratios Reference Group to review the existing ratios and previous proposals for change to develop recommendations for more meaningful and relevant ratios for consideration by the DLGSC and the Minister.  This Reference Group included financial professionals within the local government industry as well as representatives from WALGA, DLGSC, OAG and private enterprise. This Reference Group is still in operation and continues to discuss FHI, model financial statements and benchmarks for the recommended adjusted and new ratios within the report. However, their initial report has been presented to the DLGSC and the Minister for consideration.

 

Council was provided a briefing in May 2021 regarding the progress of the FSP and the various processes being undertaken at WALGA and the OAG. This briefing provided a broad outline of measures the City can take to improve its financial sustainability.

 

Finally, the City (then Shire) has previously established its own internal benchmarks following the commissioning of Ron Back and Associates in the 2005/06 financial year. Council, when endorsing its Five Year Financial Plan (5YFP) established two ratios and a benchmark and target.


 

Council resolved at its meeting on 10 May 2006:

 

…6. Endorse a funding ratio (being the percentage of annual rate revenue and untied grant monies required to meet the annual recurrent operational expenditure) target of below 70% by the end of Year 5 of the plan.

7. Endorse a maximum acceptable Debt Service Ratio (being annual debt service costs as a percentage of annual rate revenue and untied grant monies) of 10%.

 

These previous benchmarks and parameters were used to formulate the 5YFP to guide its decision making. These ratios and this decision has also been considered within the FSP.

OFFICER COMMENT

To specifically address the requirements of Councils established KPI for the CEO it’s important to note the changing landscape both surrounding the local government sector and also the City of Busselton in relation to potential projects, reporting requirements and reviews of existing financial ratios.

 

Council was provided a briefing in May 2021, outlining some of these factors as well as a general update on the progress of the plan.

 

The City’s current LTFP (March 2020) has been used as a base to assist in data collection, however due to the uncertainty of the potential BPACC project, further additional modelling has been carried out to consider borrowing and operating costs, now that a more concrete figure of construction value is known.

 

The attached FSP provides 5 key recommendations for Council to consider to improve financial sustainability and reporting to the community over the next 3 years.

 

These recommendations assume that if endorsed, these would provide additional parameters and assumptions in the future development of the City’s LTFP, for each review.

 

FSP Recommendations:

Recommendation

Comment

Recommendation 1:

That the City continue to advocate in conjunction with WALGA and the local government sector to the Minister for Local Government and the DLGSC to implement the recommendations from the Ratio Reference Group Report.

 

 

The City has already met with both the Minister and the Executive Director at the DLGSC to express the support of the City in relation to the WALGA Ratio Reference Group Report. This advocacy will continue, to ensure more fit for purpose data is disseminated to the general public and our community.


 

Recommendation 2:

That the City of Busselton:

1)    Acknowledge the potential changes to financial ratios and continue to report on the existing prescribed financial ratios, with an aim to improve the overall FHI progressively over the next 3 years;

2)    Endorse the proposed prescribed ratios (detailed in appendix A) as developed by the WALGA Ratio Reference Group:

i)     Operating Surplus Ratio (Modified)

ii)    Net Financial Liabilities Ratio (New)

iii)   Debt Service Coverage Ratio (modified)

iv)   Current Ratio (modified); and

 

3)    Continue to set a benchmark for the Debt Service Ratio (being the percentage of annual rate revenue and untied grant monies required to meet the annual recurrent operational expenditure) at a maximum of 10% and a Funding Ratio (being annual debt service costs as a percentage of annual rate revenue and untied grant monies) at a maximum of 70% and a minimum of 60% and to include the results within the Annual Report.

 

 

The initial part of this recommendation is just acknowledgement that the change is likely. However we are still obligated under current legislation to report on the prescribed ratios, which form the calculations for the Annual FHI score.

While modelling at this stage show a slight dip in some ratios in the first 3 years, this improves throughout the life of the LTFP. Clearly this is mainly due to additional borrowing costs and the impact of the BPACC. However, the goal is to still maintain an improving trend ratio.

Part 2 suggests endorsing the proposed ratios by the WALGA Ratio Reference Group. This particular group has not established a benchmark at this time, until the DLGSC considers them in more detail. However, it is suggested that the City also report on these particular ratios in addition to the prescribed ratios in the Annual Financial Report.

Modelling of the specific ratio mentioned in Part 3 of this recommendation indicates that the City will maintain the proposed benchmarks over the ensuing 3 years. As this has been a measure previously used by the City of Busselton, it would be prudent to continue this into the future as a guide. Therefore, these parameters should also form part of the LTFP development and assumptions into the future.

Recommendation 3:

That the City report to the community on an annual basis (in addition to the prescribed ratios) the ratios and benchmarks identified in recommendation 2.

 

 

There are already a number of ways that financial performance is reported to the community, Council and Government agencies as indicated within the FSP. The addition of the new ratios and the internal benchmarks as indicated in recommendation 2 would also be beneficial to include in the Annual Financial Report to ensure visibility to the community.


 

Recommendation 4:

That the ratios and benchmarks outlined in recommendation 2 also be modelled within the City’s LTFP to ensure that these form an element of the parameters and assumptions in the development of the LTFP annual review.

 

 

As mentioned above, the new benchmarks and proposed ratios should form part of the assumptions and guidelines for the development of each annual review of the LTFP. This would ensure that the City’s future direction remains within the limits as set.

Recommendation 5:

That the City in the short term:

1.         Undertake a rating strategy and review;

2.         Investigate and establish a process improvement program to realise efficiencies;

3.         Undertake a service level review program;

4.         Cease the process of transferring surplus funds to the New Infrastructure Development Reserve;

5.         Undertake a Reserves and Investments review; and

6.         Optimise capital and borrowing strategies.

 

 

This final recommendation provides a list of further projects and work to be undertaken that will potentially increase income and reduce expenditure. If this were to occur, financial sustainability would naturally result from this approach.

 

These 6 identified areas should assist in improving the bottom line of the City of Busselton ultimately improving key ratios that are reported to the community and relevant State Agencies.

 

Statutory Environment

Local governments are required as per Section 5.56 of the Local Government Act 1995 to plan for the future of its district. Regulations 19C and 19DA of the Local Government (Administration) Regulations 1996 provide specific guidance to local governments in relation to planning for the future.

 

While a FSP is not a requirement of the Local Government Act 1995, it provides additional information to develop both the LTFP and the Corporate Business Plan in future years.

Relevant Plans and Policies

The officer recommendation aligns to the City of Busselton LTFP 2021/22 – 2030/31. The 2022/23 – 2031/32 LTFP will consider the FSP within its development.

 

Recommendation 5 may require Council to consider impacts in relation to rating strategies and loan borrowing policies in the future.

Financial Implications

The FSP outlines proposed benchmarks and a guideline for the development of forward planning financial documents and decisions. This provides broad direction.

Stakeholder Consultation

Interactions with the WALGA, DLGSC, private consultants, Council and City staff has taken place to formulate the FSP and recommendations.


 

Risk Assessment

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

Modelling within the LTFP is not accurate.

Risk Category

Risk Consequence

Likelihood of Consequence

Risk Level

Financial

Moderate

Likely

Medium

 

The LTFP is regularly reviewed throughout the year to consider impacts of decisions, such as a change in general direction. In addition, the LTFP is fully reviewed annually and assumptions retested, with the view of providing a surplus LTFP over the life of the plan.

The recommendations provided within the FSP have the potential to reduce this risk.

 

Options

As an alternative to the proposed recommendation the Council could:

1.         Reject the recommendations and continue to report on its financial performance under the current standards.

2.         Partially accept recommendations within the report as deemed to be appropriate.

CONCLUSION

As stated above, the current LTFP is a version of a FSP. However this FSP provides additional actions and benchmarks to improve the bottom line at the City of Busselton. The additional reporting provides more information to the general public and assists in the development of major financial decisions into the future.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Should Council accept the officer recommendation, elements of the FSP will be incorporated into LTFP development and decision-making within 2 – 3 weeks. Further action plans will need to be developed and communicated to Council in particular with Recommendation 5. This would be developed over the ensuing 12 months.

 


Council

141

22 September 2021

12.6

Attachment a

City of Busselton FSP Final Draft 1.9.2021

 


















































Council                                                                                      146                                                      22 September 2021

13.             Planning and Development Services Report

Nil


Council                                                                                      150                                                      22 September 2021

14.             Engineering and Work Services Report

14.1           RFT 16/21 ROAD SHOULDER WIDENING

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

Tenders

BUSINESS UNIT

Operation and Works Services

REPORTING OFFICER

Manager, Operation and Works Services - Matthew Twyman

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   Published Under Separate Cover Confidential RFT 16/21 Tender Evaluation Report  

 

OFFICER RECOMMENDATION

That the Council:

1.         Pursuant to RFT 16/21 Road Shoulder Widening, accept the tender from Leeuwin Civil Pty Ltd as being the most advantageous tender.

2.         Delegates power and authority to the Chief Executive Officer to negotiate and agree minor variations in accordance with Regulation 20 of the Local Government (Functions and General) Regulations 1996.

 

EXECUTIVE SUMMARY

The City of Busselton invited tenders under Request for Tender RFT 16/21 Road Shoulder Widening (RFT 16/21) for a suitably experienced and qualified contractor to deliver road shoulder widening projects on Wildwood Road, Chapman Hill Road and Kaloorup Road.

 

This report recommends that Council:

·        endorse the outcome of the evaluation panel’s assessment;

·        delegate power and authority to the CEO to negotiate and agree final terms and conditions with the successful tenderer, Leeuwin Civil Pty Ltd (Leeuwin Civil), subject to Commonwealth funding approval.

 

BACKGROUND

This contract is for the rework, widening and sealing of road shoulders, installation of standard and audible edgelining, and associated works on the following roads:

·        Wildwood Road SLK 0.24 to 17.29;

·        Chapman Hill Road SLK 5.19 to 18.79; and

·        Kaloorup Road SLK 0.82 to 8.72.

 

These projects will improve driver safety through the provision of sealed road shoulders funded under the Commonwealth Regional Road Safety Program and Main Roads WA Blackspot Program. 


 

OFFICER COMMENT

On 31 July 2021, tenders were invited via TenderLink and advertised in ‘The West Australian’ newspaper. Tenders closed on 19 August 2021 and five submissions were received:

1.         Busselton Civil Pty Ltd

2.         Carbone Bros Pty Ltd

3.         Fulton Hogan Industries Pty Ltd

4.         Leeuwin Civil Pty Ltd

5.         Leschenault Excavations Pty Ltd

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:

(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. All tenders were deemed compliant; and

(b)       Assessing submissions received against the Qualitative Criteria weighted as detailed below.

 

Qualitative Criteria

Weighting

Relevant Experience

30%

Local Benefit

5%

Demonstrated Understanding

25%

 

The net price was scored using the ‘Average Based Scoring Method’ recommended by WALGA in the ‘Local Government Purchasing and Tender Guide’.

 

The panel members individually assessed the qualitative criteria for each schedule, then met and applied an average to provide a final ranking. The qualitative and price scores were then added together to indicate the rankings.

 

Summary of Assessment Outcomes

Of the five submissions received for RFT 16/21, Leeuwin Civil ranked second on the Qualitative Criteria and ranked second or third on price following application of Regional Price Preference for all three projects.  This resulted in Leeuwin Civil being ranked first overall for all three projects, providing a well-documented and detailed submission.

 

Leeuwin Civil have relevant experience in delivering large scale civil construction projects and employ personnel with relevant qualifications and significant industry experience. They operate a large fleet of construction plant and equipment and are prepared to expand this to improve production on road shouldering works. They have shown a good understanding of the projects and have provided construction methodologies that can be delivered as per the required timeframes.


 

Statutory Environment

Section 3.57 of the Local Government Act 1995 (the Act) 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 such 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.

 

The officer’s recommendation complies with the above-mentioned legislative requirements. The estimated expenditure is in excess of $500,000 which is above the Chief Executive Officer’s delegated authority.

Relevant Plans and Policies

The City's Purchasing, Regional Price Preference, Occupational Safety and Health, and Asset Management policies, and the City’s Engineering Technical Standards and Specifications, were all relevant to RFT 16/21, and have been adhered to in the process of requesting and evaluating this tender.

Financial Implications

The requirements provided under RFT 16/21 will be funded from the Capital Budget as follows:

Commonwealth Regional Road Safety Program funding

·        S0336 Wildwood Road $1,875,500

·        S0334 Chapman Hill Road $1,496,000

·        S0335 Kaloorup Road $481,900

 

Main Roads WA Blackspot funding

·        S0076 Kaloorup Road $436,000

 

The estimated cost to deliver Wildwood Road, Chapman Hill Road and Kaloorup Road, based on the rates submitted, equates to approximately $3,871,391.  This is within the available allocated budget.

 

The Wildwood Road project funding sits within tranche 2 of the Commonwealth Regional Road Safety Program and has full Federal approval, requiring completion by 31 December 2021.

 

Commonwealth Regional Road Safety Program funding associated with Chapman Hill Road and Kaloorup Road sits within tranche 3 of the program and is conditional upon formal approval by the Federal Government. This approval is expected in December 2021 and will require completion of both projects between 1 January and 30 June 2022.

 

Any contract awarded will be conditional upon the City securing sufficient funding for Chapman Hill Road and Kaloorup Road.

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’s recommendation has been undertaken using the City’s risk management framework, with the intention being to identify risks which, following implementation of controls, are identified as medium or greater. There are no such risks identified, with the preferred tenderer(s) assessed as being capable of delivering the services to a suitable service level.

 

Options

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

1.         Determine not to accept the tender from Leeuwin Civil and accept a tender(s) from one or more of the other Contractors who submitted; or

2.         Decline to accept any tender.

CONCLUSION

The submission from Leeuwin Civil for all three road projects is considered the most advantageous to the City. It is recommended that Leeuwin Civil be awarded the contract to deliver road shoulder widening for Wildwood Road, Chapman Hill Road and Kaloorup Road resulting from RFT 16/21.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

If endorsed by Council, it is expected the City will enter into a contract with Leeuwin Civil by the end of September 2021.

Road shoulder widening will begin with Wildwood Road with completion expected early December.  Chapman Hill Road and Kaloorup Road projects will run consecutively commencing in January 2022, with completion by the end of April 2022.


Council                                                                                      152                                                      22 September 2021

15.             Community and Commercial Services Report

Nil


 

16.             Finance and Corporate Services Report

Nil


Council                                                                                      155                                                      22 September 2021

17.             Chief Executive Officers Report

17.1           COUNCILLORS' INFORMATION BULLETIN

STRATEGIC THEME

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

STRATEGIC PRIORITY

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

SUBJECT INDEX

Councillors' Information Bulletin

BUSINESS UNIT

Executive Services

REPORTING OFFICER

Reporting Officers - Various

AUTHORISING OFFICER

Chief Executive Officer - Mike Archer

NATURE OF DECISION

Noting: The item is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Nil

 

OFFICER RECOMMENDATION

 

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

17.1.1       Donations, Contributions and Subsidies Fund – August 2021 

17.1.2       Current Active Tenders

 

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       Donations, Contributions and Subsidies Fund – August 2021 

The Council allocates an annual budget allowance to the Donations, Contributions and Subsidies Fund. This is provided such that eligible groups and individuals can apply for and receive sponsorship to assist them in the pursuit of endeavours 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. Seven applications were approved in August 2021, totalling $3,423.00, as outlined in the table below:

 

Recipient

Purpose

Amount

Busselton Senior High School

Contribution towards the cost of organising and hosting NAIDOC week celebrations involving students, staff and the wider community.

$1,000.00

Busselton Senior High School

Sponsorship of two awards for Year 12 graduation presentations

$200.00

Zonta Club of Dunsborough

Donation requested to cover the cost of room hire at the NCC - venue for their annual Bridge Competition Fundraiser

$665.00

CWA Dunsborough

Request for the waiver of food registration fees for their new kitchen in the CWA Dunsborough rooms located at the recently completed Dunsborough CapeCare complex.

$458.00

Man Walk Busselton

Man Walk Busselton are coordinating the 'Man with a Pram' event to be held on Father's Day 2021. The free community event aims to bring families together and combat the isolation of parenthood and focus on the mental health of fathers. Donation requested to assist with catering and advertising related expenses for the event.

$700.00

GP Down South

Donation requested to cover the cost of up to 40 passes for participants taking part in the Jetty Walk or Mental Health during Mental Health Week.

$200.00

Cape Naturaliste College

Sponsorship of award for Year 12 presentation night

$200.00

Total

$3,423.00

17.1.2       Current Active Tenders 

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

 

RFT 04/21 ROAD NETWORK UPGRADE – PEEL TERRACE CAUSEWAY ROAD INTERSECTION UPGRADE – STAGE 1A

·        Requirement – Upgrade – Peel Terrace and Causeway Road intersection upgrade (Stage 1A)

·        Invitation for tenders was advertised on 21 August 2021 and will close on 8 September 2021.

·        The value of the contract is expected to exceed the CEO’s delegated power for accepting tenders (DA 1 – 07 Inviting, Rejecting and Accepting Tenders).  

 

RFT 14/21 ELECTRONIC EVENTS BILLBOARD

·        Requirements - the design, fabrication and installation of an electronic events billboard on Bussell Hwy, Busselton.

·        A request for tender was advertised on 19 June and closed on 14 July 2021. 

·        Three submissions were received – all are exceeding the project budget. 

·        City officers are in the process of seeking further direction from Marketing and Events Reference Group in relation to funding for this project. 

·        The value of the contract is within the CEO’s delegated power for accepting tenders (DA 1 – 07 Inviting, Rejecting and Accepting Tenders).

 

RFT 15/21 SURF LIFE SAVING SERVICES

·        Requirements – the provision of professional lifeguarding services at Smiths Beach and Yallingup Beach for the 2021/22 & 2022/23 seasons. 

·        It is intended that an invitation for tenders will be advertised in September 2021.

RFT 16/21 ROAD SHOULDER WIDENING

·        Requirements – rework and widening of road shoulders on Wildwood Road, Chapman Hill Road and Kaloorup Road Busselton. 

·        A request for tender was advertised on 31 July 2021 and closed on 19 August 2021.

·        Five submissions were received. 

·        The value of the contract exceeds the CEO’s delegated power for accepting tenders (DA 1 – 07 Inviting, Rejecting and Accepting Tenders).

·        It is intended that a report to Council for a decision on the tender will be presented to Council at this meeting 22 September 2021. 

 

RFT 17/21 NATURAL AREAS MANAGEMENT

·        Requirements – a suitable contractor to provide management and maintenance works of the City’s natural reserve areas.

·        A request for tender was advertised on 31 July 2021 and closed on 24 August 2021.

·        Four submissions were received. 

·        The value of the contract is within the CEO’s delegated power for accepting tenders (DA 1 – 07 Inviting, Rejecting and Accepting Tenders).

·        It is intended to complete assessment of tenders and enter into a contract with the preferred tenderer in September 2021.

 

RFT 18/21 REPLACEMENT OF ADMINISTRATION BUILDING CLADDING

·        Requirements – a contractor to substantially replace the cladding to the City Administration building as a result of a state wide cladding audit. The existing material used has been deemed non-compliant.

·        A request for tender was advertised on 1 September 2021 and will close on 23 September 2021.

·        If the value of the contract exceeds the CEO’s delegated power for accepting tenders (DA 1 – 07 Inviting, Rejecting and Accepting Tenders) it is intended that a report to Council for a decision on the tender will be presented to Council at its meeting on 27 October 2021. 

 

RFT 19/21 DUNSBOROUGH LAKES SPORTS PRECINCT CARPARK AND COURTS 

·        Requirements – Construction of carpark and multi-use courts for the Dunsborough Lakes Sports Precinct. 

·        A request for tender is intended to be advertised on 18 September 2021. 

·        The value of the contract is expected to exceed the CEO’s delegated power for accepting tenders (DA 1 – 07 Inviting, Rejecting and Accepting Tenders).

·        It is intended that a report to Council for a decision on the tender will be presented to Council at its meeting on 10 November 2021. 

 


Council                                                                                      156                                                      22 September 2021

18.             Motions of which Previous Notice has been Given

Nil

 

19.             urgent business

 


Council                                                                                      158                                                      22 September 2021

20.             Confidential Matters

20.1           DISPOSITION OF PROPERTY LOTS 58 & 59 CHAPMAN HILL ROAD AND LOT 60 QUEEN ELIZABETH AVENUE, AMBERGATE

 

The report listed above is of a confidential nature, in accordance with section 5.23(2) of the Local Government Act 1995. This report has been provided to Councillors, the Chief Executive Officer and Directors only.

 


 

21.             Closure