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Ordinary Supplementary Agenda 20 October 2014
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Ordinary Supplementary Agenda 20 October 2014
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PUBLISHING OF AGENDAS AND MINUTES
The Agendas for Council Meetings and Council Reports for each meeting are available from 5.00 pm one week prior to each Ordinary Meeting, on Council’s website. A hard copy is also made available to each Library Branch and at the Bega Administration Building reception desk.
The Minutes of Committee and Council Meetings are available from 5.00pm on Council's Web Site on the Friday after the Meeting on Councils website and hard copies distributed with the Agenda for the following meeting.
1. Please be aware that the recommendations in the Council Meeting Agenda are recommendations to the Council for consideration. They are not the resolutions (decisions) of Council.
2. Background for reports is provided by staff to the General Manager for his presentation to Council.
3. The Council may adopt these recommendations, amend the recommendations, determine a completely different course of action, or it may decline to pursue any course of action.
4. The decision of the Council becomes the resolution of the Council, and is recorded in the Minutes of that meeting.
5. The Minutes of each Council meeting are published in draft format, and are confirmed, with amendments by Councillors if necessary, at the next available Council Meeting.
If you require any further information or clarification regarding a report to Counci, please contact Council’s Executive Assistant who can provide you with the appropriate contact details
Phone (6499 2104) or email execassist@begavalley.nsw.gov.au.
ETHICAL DECISION MAKING AND CONFLICTS OF INTEREST
A GUIDING CHECKLIST FOR COUNCILLORS, OFFICERS AND COMMUNITY COMMITTEES
Ethical decision making
Is the decision or conduct legal?
Is it consistent with Government policy, Council’s objectives and Code of Conduct?
What will the outcome be for you, your colleagues, the Council, anyone else?
Does it raise a conflict of interest?
Do you stand to gain personally at public expense?
Can the decision be justified in terms of public interest?
Would it withstand public scrutiny?
Conflict of interest
A conflict of interest is a clash between private interest and public duty. There are two types of conflict:
Pecuniary – regulated by the Local Government Act and Department of Local Government
Non-pecuniary – regulated by Codes of Conduct and policy. ICAC, Ombudsman, Department of Local Government (advice only). If declaring a Non-Pecuniary Conflict of Interest, Councillors can choose to either disclose and vote, disclose and not vote or leave the Chamber.
The test for conflict of interest
Is it likely I could be influenced by personal interest in carrying out my public duty?
Would a fair and reasonable person believe I could be so influenced?
Conflict of interest is closely tied to the layperson’s definition of ‘corruption’ – using public office for private gain.
Important to consider public perceptions of whether you have a conflict of interest.
Identifying problems
1st Do I have private interests affected by a matter I am officially involved in?
2nd Is my official role one of influence or perceived influence over the matter?
3rd Do my private interests conflict with my official role?
Whilst seeking advice is generally useful, the ultimate decision rests with the person concerned.
Agency advice
Officers of the following agencies are available during office hours to discuss the obligations placed on Councillors, officers and community committee members by various pieces of legislation, regulation and codes.
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Contact |
Phone |
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Website |
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Bega Valley Shire Council |
(02) 6499 2222 |
council@begavalley.nsw.gov.au |
www.begavalley.nsw.gov.au |
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ICAC |
8281 5999 Toll Free 1800 463 909 |
icac@icac.nsw.gov.au |
www.icac.nsw.gov.au |
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Division of Local Government (DPC) |
(02) 4428 4100 |
dlg@dlg.nsw.gov.au |
www.dlg.nsw.gov.au |
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NSW Ombudsman |
(02) 8286 1000 Toll Free 1800 451 524 |
nswombo@ombo.nsw.gov.au |
TO: The
General Manager
Bega Valley Shire Council
Disclosure of pecuniary interests / non-pecuniary conflict of interests
In accordance with the Council’s Code of Meeting Practice and the requirements of the Local Government Act and regulations or dispensation issued by the Division of Local Government I hereby disclose the following pecuniary interests and/or non-pecuniary conflict of interests at the meeting as indicated below:
Ordinary meeting held on _____ / _____ / 20___
dd mm yy
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Item no & subject |
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Interest (tick one) |
Pecuniary interest Non-pecuniary conflict of interest |
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* Nature of interest |
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If Non-pecuniary (tick one) |
Disclose & vote Disclose & not vote Leave chamber |
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Item no & subject |
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Interest (tick one) |
Pecuniary interest Non-pecuniary conflict of interest |
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* Nature of interest |
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If Non-pecuniary (tick one) |
Disclose & vote Disclose & not vote Leave chamber |
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Signed |
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Print Name |
Councillor |
* Note: Under the provisions of Section 451(1) of the Local Government Act 1993 (pecuniary interests) and Part 6.11 of the Model Code of Conduct prescribed by the Local Government (Discipline) Regulation 2004 (conflict of interests) it is necessary for you to disclose the nature of the interest when making a disclosure of a pecuniary interest or a non-pecuniary conflict of interest at a meeting.
Council 22 October 2014
S Staff Reports – Leading Organisation
In accordance with Council’s Code of Meeting Practice, this section of the agenda will be chaired by Councillor Mawhinney
S.1 Disposal of Council owned Land at North Bega ............................................... 7
Council 22 October 2014
staff reports – leading organisation (governance and strategy)
22 October 2014
In accordance with Council’s Code of Meeting Practice (2011), this section of the agenda will be chaired by Councillor Mawhinney.
S.1 Disposal of Council owned Land at North Bega ......................................... 7
Council 22 October 2014 Item S.1
Bega Cheese have occupied a 1,851m2 parcel of Council owned land at North Bega (Lot 21 DP 854462) under a Deed of Lease agreement since 1994 and are seeking to formally acquire the land from Council.
Group Manager Strategy and Business Services
Background
A Deed of Lease was entered into between Bega Valley Shire Council and the Bega Cooperative Society Limited in June 1994 for the occupation of a section of unformed road reserve located within the existing Bega Cheese Lagoon Street factory precinct at North Bega. The intention was for Bega Cheese to lease the section of road reserve from Council (as Roads Authority) until formal closure of the road could be effected, title issued and a subsequent sale negotiated.
The plan of road closure was registered in 1996 and the road formally closed via gazettal in 1997. It is unclear why a sale of the new lot was not transacted following that process, however Bega Cheese continued to pay a monthly lease fee for the site. In 2007, Bega Cheese made contact with Council requesting to proceed with the acquisition of the site and at that time it was discovered that the land had inadvertently been classified as ‘community’ land and could not be sold. As part of the Comprehensive Local Environmental Plan (CLEP) process, Council moved to re-classify the land to ‘operational’ so that a sale could be progressed.
On adoption of the CLEP in 2013, Council staff requested a current market valuation from Caddey, Searl & Jarman (CSJ). Bega Cheese subsequently obtained their own independent valuation, which provided a value well below that contained in the CSJ report and discussions with Bega Cheese have been ongoing since that time.
Copies of the confidential valuations received have been circulated to Councillors under separate cover.
ISSUES
Legal
Council’s solicitor has been requested to prepare a draft contract of sale which will be ready for issue prior to the Council meeting.
The offer to purchase received from Bega Cheese on 16
October 2014 is on the following terms:
· Consideration totalling $100,000 (excluding GST);
· Property to be unencumbered and free of easements, other than noting the existing benefits to Bega Cheese as to its buildings already on the property;
· Costs associated with the sale are to be paid by BVSC;
· The sale is to be completed as soon as possible.
Policy
Council’s Acquisition and Disposal of Land procedure provides that any land to be disposed of by Council is subject to a formal resolution of the Council – the decision cannot be delegated.
As Bega Cheese own all the surrounding landholdings and Council have during their period of lease approved development by Bega Cheese on the site, it is deemed that a non-competitive process of disposal (direct negotiation) is warranted. As the parcel of land was also the subject of a section of unformed road which had been formally closed, the direct sale to adjoining owners is permissible. On execution of the Deed of Lease back in 1994, the intention was clearly to negotiate an eventual sale to Bega Cheese.
At least one formal market valuation is to be undertaken by a valuer registered to value such property. Differences in valuations of more than 10% require an assessment of the reason why they are different, and more detailed justification of the price.
Asset
The parcel of land (Lot 21 DP 854462) was included in Council’s surplus land register and identified for future sale to adjoining landowners.
Economic
Bega Cheese wish to further develop the site and in order to do that, consolidation of the site leased with their surrounding landholdings is required. Council wish to see further development take place within the Shire and therefore support acquisition of the site by Bega Cheese as it will generate significant economic activity for the region.
Strategic
In rare circumstances, Land may be disposed of to achieve strategic outcomes. In such situations, “best value” may comprise financial, environmental or social elements, with the actual price falling below the “market value” range. There are non-financial elements of the proposed sale to Bega Cheese which justify a sale at an amount less than that contained in the valuation obtained by Council.
Financial
Council’s Acquisition and Disposal of Land procedure provides that the proceeds of the sale of 'operational' land will be used to leverage investment or strategic outcomes in accordance with Council's adopted Financial Strategy. The proceeds of this sale would be placed in the Property Development Reserve.
Consultation
Due to the difference in values contained in the two independent valuations, further advice and clarification was requested from each of the valuers to justify their methodology and assist with sale negotiations.
Although the final offer received from Bega Cheese is below the value range (15% scope) contained in the CSJ report, it is well in excess of the value contained in the valuation report obtained by Bega Cheese. Council staff rejected several initial offers from Bega Cheese, as they were considered to be well below land value. Council staff consider the final offer from Bega Cheese to be a fair value for the site, taking into consideration:-
· The difference in the valuations obtained;
· Buildings belonging to Bega Cheese already existing on the site;
· Limitations on development due to the composition of boundaries;
· The fact that it is surrounded by Bega Cheese on three sides;
· 50% of the land is subject to flooding;
· There being no reticulated sewer available leading to higher development costs;
· The additional economic benefits achieved for the Shire by supporting further development and growth by Bega Cheese.
Conclusion
Council staff support acceptance of the offer received from Bega Cheese to acquire the site for the consideration of $100,000, given the limited relevant sales evidence available within the North Bega area over the past five years. It is also considered that additional economic benefits will be achieved for the Shire by supporting further development and growth by Bega Cheese.
ATTACHMENTS
1. CSJ Valuation Report (Confidential)
2. PP&E Valuation Report (Confidential)
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1. That Council approve the disposal of Lot 21 DP 854462 at North Bega to Bega Cheese Limited for the sum of $100,000 (excluding GST). 2. That Council’s legal fees to finalise this matter be payable by Council. 3. That Council hereby authorise its Official Seal to be affixed to the contract documents under the signature of the Mayor and General Manager. |