Agenda of Extraordinary Council

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, Office 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.

Contact	Phone	Email	Website
Bega Valley Shire Council	(02) 6499 2222	council@begavalley.nsw.gov.au	www.begavalley.nsw.gov.au
ICAC	8281 5999 Toll Free 1800 463 909	icac@icac.nsw.gov.au	www.icac.nsw.gov.au
Office of Local Government	(02) 4428 4100	olg@olg.nsw.gov.au	http://www.olg.nsw.gov.au/
NSW Ombudsman	(02) 8286 1000 Toll Free 1800 451 524	nswombo@ombo.nsw.gov.au	www.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 Office 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

Item no & subject
Interest (tick one)	Pecuniary interest Non-pecuniary conflict of interest
* Nature of interest
If Non-pecuniary (tick one)	Disclose & vote Disclose & not vote Leave chamber

Item no & subject
Interest (tick one)	Pecuniary interest Non-pecuniary conflict of interest
* Nature of interest
If Non-pecuniary (tick one)	Disclose & vote Disclose & not vote Leave chamber

Signed
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.

Extraordinary Council 16 November 2015

Item 3.1

3.1. Fit for the Future

Councils have until 18 November 2015 to consider any final proposals relating to potential merger options for presentation to the State Government

General Manager

Background

At its meeting on 4 November Council noted an update on Bega Valley Shire Councils’ Fit for the Future status. Council were also informed by the Mayor that Bombala Council had approached Bega Valley Shire proposing consideration of a potential merger option.

Bombala Council considered the IPART Report as a late report at the Council meeting on 21 October 2015 and resolved to approach all three neighbouring councils. The resolution was

That Council:

1. consider this information and hold a workshop to discuss the matter at 7.00pm on Wednesday, 28 October 2015; and

2. discuss options with the community; and

3. discuss options with neighbouring Councils; and

4. hold an extra ordinary meeting to decide Council’s negotiating position in relation to this report prior to 18 November 2015.

Subsequently Bombala met with Bega Valley on 26^th and Snowy River and Cooma-Monaro Shire Councils on 27^th and then considered the matter more fully on 28^th October. At that Bombala Council workshop, although it was not a meeting, all councillors (6 were present) were clearly in favour of merging with Bega Valley Shire Council.

Bega Valley Shire Council at the meeting on 4 November 2015 resolved:

1. That Council note the IPART assessment of the Council Improvement Proposal as Fit.

2. That an Extraordinary Meeting be held on 16 November, 2015 at 2.00 pm to make the final decision to any potential merger options or additional comments to be lodged with the Department of Premier and Cabinet by 18 November 2015.

Since the 4 November:

· Council staff have visited Bombala and undertaken an initial assessment of their services, assets, scale and capacity, and finances

· Council’s Group Manager of Strategy and Business Services has met with Bombala’s acting finance manager to more fully review financial statements and position

· Council staff in finance, assets and services commenced an assessment of:

§ Any impacts of a merger should it proceed and an outline of Bombala’s current position

§ An assessment of the two areas, communities, economies, services, financials, major projects, assets and opportunities and challenges

§ An initial assessments of costs and savings from a merger proposal

§ A detailed list of what would be needed to make it happen.

· On Tuesday 10 November 2015 Bombala Council met with IPART to gain a more detailed assessment of their Fit for the Future status. They were advised that they were clearly moving to achieving all financial benchmarks, had capacity but lacked sufficient scale in terms of a growing population.

· On Tuesday 10 November 2015 the delegations from the two Councils met with Minister for Transport and Infrastructure and Bega MP The Hon Andrew Constance, Minister for Regional Development and Monaro MP The Hon John Barilaro and Minister for Local Government The Hon Paul Toole.

· On Tuesday 10 November 2015 Bombala met after this meeting with Ministers Barilaro and Toole to ascertain any option for a stand-alone rural council model and were clearly told that this was not an option. Bega met with Minister Constance in relation to the discussions and discussed issues that needed to be addressed to ensure positive benefits and no negative impacts of any merger proposal should it proceed.

· Extraordinary meetings for both Councils have been planned (Bega Monday 16 November and Bombala Tuesday 17 November) and Councillor representatives from Bombala have been invited to meet with Bega Valley Shire Council prior to the meeting.

· Minister Toole wrote to all Mayors on 11 November 2015(copy attached).

Issues

Legal and Governance

Fit for the Future has been the State Governments response to the Independent Local Government Review Panel (ILGRP) recommendations released in 2013.

In 2015 IPART were appointed to assess Council Improvement Proposals with their assessment provided to Government on 16 October and the recommendations released on 20 October.

Council has until the 18 November to consider the IPART assessment and make any merger proposals. Any proposal must be lodged in a specific online template via an online portal. Council has been advised that final outcomes will be advised to Council in December 2015.

Both Councils are identified as members of the South East Joint Organisation. As previously advised further detail about Joint Organisations is expected this month.

Council has previously been provided with Bega Valley Shire’s IPART assessment as Fit.

Bombala Shire Council lodged a Rural Council proposal. The ILGR Panel option was for a merger with Cooma-Monaro and Snowy Mountains Councils. All three councils were determined as Not Fit. The three Councils had an independent assessment of benefits of merging which were determined as not to be substantial by the three Councils ($22m over 20 years).

Bombala was determined to meet the Financial Criteria and but did not satisfy the Scale and Capacity criteria. Bombala’s proposal included reliance on a special variation application from 2016/17. A copy of the IPART Bombala assessment can be viewed in the IPART Assessment of Council Fit for the Future Proposals document.

Any merger proposal presented by Councils can be accompanied by a Council resolution and can include conditions. This was confirmed by the Ministers at the meeting with the two Councils at Parliament House on Tuesday 10 November 2015.

The State Government has undertaken to provide funding to Councils who nominate to voluntarily merge by 18 November 2015. This funding is provided in two packages to cover merger costs and to contribute to community infrastructure. The funding will not be available to any Councils that do not nominate and who may be recommended for forced amalgamations. The total amount from this source for regional/rural councils is $10 million.

There are a number of steps that the State Government need to undertake after any announcement in December. These are referred to in the Local Government Act 1993 (the Act) as it relates to mergers, boundary adjustments, and staff protections. The Government has yet to release its proposed implementation approach or timelines and the Minister at the meeting at Parliament House indicated that he would welcome Councils to consider and include in any proposal their recommendations for their circumstances. The Minister acknowledged that one approach would not suit all situations.

Appropriate Option for merging Councils

Minister Toole advised both Councils that he would accept a proposal that saw a seamless transition to a new operating body. A draft option which was tabled to the Ministers included:

· Bega Valley Shire Council continuing with elected officials until the 2016 local government elections

· At a date determined by State Government, Bombala Council become a section 355 committee of Bega Valley Shire Council advising on integration and priorities for Bombala until 30 June 2016. Councillors to maintain allowances and activities until this date.

· Bombala staff report through current Bombala General Manager to Bega Valley Shire General Manager until 30 June 2016. Bombala Councillors and staff be involved in the development of the operational plan and operating budget for 2016/17.

· That all existing commitments and reserves held by Bombala Shire Council be appropriately restricted and outlined in the above plans and budget.

· The new operating entity of Bega Valley Shire Council (name to be retained) commence on 1 July 2016.

· The new entity be the entity for the 2016 local government elections without wards or ridings.

· That an appropriate community committee structure be established to allow for consultation and input from Bombala into the future.

Guarantees from Government

Minister for Local Government

A critical criteria for Bega Valley Shire Council on being assessed Fit for the Future is that should any merger proposal proceed that the Council’s current Fit status is not compromised in any way. This is of particular importance to Bega Valley due to a range of benefits that are to become applicable to Fit Councils. These include access to borrowings through a local government State borrowings facility, priority assessment in applications for State funding and grants, and special variation flexibility.

The Hon Andrew Constance

Minister Constance, whilst supportive of the Councils seriously considering a merger, stated that his highest priority was protecting the current status of the Bega Valley Shire Council which has worked very hard over the past five years to be in a very sound position. He was committed to ensuring that any proposal protected the ratepayers and the organisation of the Bega Valley so that current plans, programs, and projects could be achieved and that there was no burden from the proposal.

Minister Constance acknowledged the position of Bombala Council as having worked hard to be in their current position but requested that the two Councils identify all key backlog issues relating to Bombala infrastructure so that funding for these could be seriously considered and no burden was transferred to any new entity.

Minister Constance also requested that the required critical funding for Mt Daragh Road be included to ensure a safe and easy transport corridor between Bombala and Pambula to ensure ease of access for administration and management of the two areas. Minister Constance also highlighted the critical importance of Imlay Road and the necessity of having it declared a State Road under the care and control of the RMS with upgrade works to be carried out to allow inland links to the Eden Port.

The importance of Mt Daragh Road and Imlay Road to the economic and community connectivity of the region was clearly a priority. The link between Bombala and central NSW to the growing Eden Port was seen as a high State priority. Imlay Road is currently not a designated road but plays a key role in linking Eden Port to the timber and farming producers. It was utilised to transport the Boco Rock Wind Farm components from the Port to Bombala.

All three Ministers supported the proposal that any merger recommendation from the Councils should include a list of critical funding requirements that would be crucial to gaining support for the merger prop

Situation Assessment – Financial, Assets, Services, Economy, Communities, Major Projects and organisations

Council staff, with the assistance of Bombala staff, have prepared the attached document which highlights key service, financial, asset information critical for Council assessment of any merger position.

Bombala Council have recently had some external assessment of asset condition. It is the opinion of staff that the asset condition assessments of both Council’s assets should continue as a priority.

Consultation

Bombala Council consulted with Bega Valley during the initial stages of responding to Fit for the Future in 2014. At that time the two Councils responded to the Office of Local Government (OLG) about the preparation of a funded merger assessment. The OLG indicated that the first proposal to be investigated should be that proposed by the ILGRP and so the work was undertaken by Bombala, Snowy River and Cooma-Monaro on a merger proposal and Bega Valley as stand alone.

As part of the Bombala Council’s preparation for developing their case they undertook a postal survey in 2014 receiving 18% response on the topic of merger. 52% of respondents preferred the council standing alone; 28% preferred a merger; in the case of a forced merger 84% preferred the Snowy River/Cooma-Monaro option. The council also held public meetings in March and June 2015.

Following the Council meeting and resolution of 21 October 2015, Bombala Council have continued discussion with the community about the best options for Bombala. Six Councillors present agreed in workshop that the benefits presented by Bega appear the most positive and they moved forward on progressing the model.

Bega Valley held community sessions in Eden, Bega, Bermagui and Merimbula in May 2015 covering a range of topics relating to budgets and in particular the Fit for the Future Council Improvement proposal.

Bombala is also holding a community session on Monday 16 November.

If the two Councils resolve to identify a voluntary merger position then appropriate consultation with staff of the two organisations and the relevant unions would commence. The requirements relating to merger proposals and staffing profiles and definitions of a rural centre as prescribed in the Act would clearly apply and be abided by.

Financial

Bega Valley

Fit for the Future achieving all benchmarks by 2017/18.

Bombala

Bombala achieves all ratios by 2024/25 and has in its current plans a proposed case for a special variation from the 2016/17 year for three years with a cumulative 28.32% increase in General fund. This increase is planned to assist address infrastructure backlogs. There is the possibility, in any merged entity, of considering a special rate for a specific area to be expended on particular projects

Funding available through Fit for the Future Regional

· Merger Implementation Grant of $5 million available for council mergers that are supported by merging partners supported by the Government and submitted to the Department of Premier and Cabinet by 18 November 2015.

· Stronger Communities Fund $5 million available providing new councils a head start on community infrastructure projects like sporting fields, libraries, parks.

Special Schedules items for consideration

1. Full Merger Implementation Grant of $5m with capacity to fund independent asset condition assessments and detailed operational analysis.

2 Full Stronger Communities Fund of $5m and capacity to expend on projects in both Shires at appropriate levels.

3. Commitment from State Government to the upgrade of Mt Darragh Road of $22 million which includes realignment and upgrade of the Six Mile Bridge with the RMS to undertake works at the Princes Highway intersection.

4. Commitment from State Government to formalisation and development of Imlay Road as a State road developed to service and grow the potential of Eden Port

5. State Government commitment to underwrite the Bombala sewer project subject of NSRF Grant total value $3.7m NSRF application, expected State contribution $1.7m

6. Commitment of funding for the following key projects in the Bombala area

7. Provision of Potable water system to Delegate $750,000

· Bombala weir height increase (amount to be inserted)

· Critical Bridge works – low level bridge crossing in Bombala

· Continuation of an annual Fixing Country Roads funding allocation of at least $1.4m

Resources (including staff)

Council staff have been involved in meetings and assessment of Bombala Councils plans and statements. If a merger proposal is resolved and agreed by Government there is an expectation that staff resources will be required to be dedicated to developing the new entity. It is expected this would be covered in existing staff profiles of the two organisations.

Operational Plan

Achieving the Fit for the Future program outcomes is identified as an action in the Operational Plan

Conclusion

The State Government has provided additional opportunity for Councils to consider their positions in relation to merger proposals which must be lodged online by Wednesday 18 November 2015. The Minister for Local Government, local members and others have been involved in considering a potential merger between Bombala and Bega Shire Councils. Fit for the Future funding is only available to those councils that agree to voluntary mergers.

Attachments

1 . Proposal for merger between Bega Valley Shire Council and Bombala Shire Council

2 . Letter to Mayors from Minister for Local Government 11.11.2015

Recommendation

1. That Council note the report provided on the merger option proposed by Bombala Shire Council.

2. That Council endorse the General Manager to complete the Fit for the Future template (insert stand alone OR merger option).

Resolutions relating to a merger option could be as outlined below:

That Bega Valley Shire Council agree to enter into a voluntary merger with Bombala Shire Council subject to the following terms and conditions:

1. That Bombala Shire Council resolve to enter into a voluntary merger with Bega Valley Shire Council on the same terms and conditions at are set out within this motion.

2. That Bega Valley Shire Council (merged with Bombala) retain all the status of a stand-alone, fit for the future Council, and with all the benefits available to a Council of that status.

3. That upon the State Government of NSW consenting to the merger and accepting the terms and conditions of this resolution , Bombala Shire be merged into and form part of the Bega Valley Shire Council and from that time until 30/6/16 :

a) the General Manager of the Bega Valley Shire Council shall assume control and responsibility for the operations of the Bombala Shire and complete the merger with the Bega Valley Shire Council

b) the 7 Councillors of Bombala Shire shall be appointed to a section 355 committee of Bega Valley Shire Council with such continuing remuneration and benefits as they received prior to the merger, and

c) that committee shall until 30/6/16 meet as required and advise the Bega Valley Shire Council on all relevant matters that arise concerning the former Bombala Shire Council pertaining to the administration of that Shire ,and

d) on or before the 30/6/16 the merger of the Bombala Shire with the Bega Valley Shire Council shall be completed and the Bombala section 355 committee of the Bega Valley Shire Council shall from the 1/7/16 continue as a voluntary committee of the Bega Valley Shire Council.

4. That the funds offered by the NSW Government for funding of councils and communities through the Merger Implementation Grant of $5m and Stronger Communities Fund of $5m available for proceeding to a voluntary merger of 2 councils be paid to the Bega Valley Shire Council for equitable distribution across the needs of the two Shires.

5. That the assets and funds of both Councils, as at the date of the merger be retained and committed for the benefit of each Shire separately, and

6. That further funding detailed in the following schedule be committed to and made available to the Bega Valley Shire Council with due diligence by the NSW State Government to ensure the voluntary merger results in a fit and economically viable Council for the benefit of the residents and ratepayers of both Shires as they merge into the Bega Valley Shire Council.

Funding Commitment:

Commitment from State Government to the upgrade of Mt Darragh Road of $22 million which includes realignment and upgrade of the Six Mile Bridge with the RMS upgrading the Princes Highway intersection at a cost of approximately $500,000.

State Government commitment to underwrite the Bombala sewer project subject of NSRF Grant total value $3.7m NSRF application, expected State contribution $1.7m

Commitment of funding for the following key projects in the Bombala area

· Provision of Potable water system to Delegate $750,000

· Bombala weir height increase (amount to be inserted)

· Critical Bridge works (amount to be inserted)

· Continuation of an annual Country Roads funding allocation of at least $1.4m

Critical economic driver commitment:

Commitment from State Government to formalisation and development of Imlay Road as a State road developed to service and grow the potential of Eden Port.

Extraordinary Council	16 November 2015
*Item 3.1 - Attachment 1*	Proposal for merger between Bega Valley Shire Council and Bombala Shire Council

Extraordinary Council	16 November 2015
*Item 3.1 - Attachment 1*	Proposal for merger between Bega Valley Shire Council and Bombala Shire Council

Extraordinary Council	16 November 2015
*Item 3.1 - Attachment 1*	Proposal for merger between Bega Valley Shire Council and Bombala Shire Council

Extraordinary Council	16 November 2015
*Item 3.1 - Attachment 1*	Proposal for merger between Bega Valley Shire Council and Bombala Shire Council

Extraordinary Council	16 November 2015
*Item 3.1 - Attachment 1*	Proposal for merger between Bega Valley Shire Council and Bombala Shire Council

Extraordinary

Meeting Notice and Agenda

To:

Copy:

Publishing Of Agendas And Minutes

Ethical Decision Making and Conflicts of Interest

A guiding checklist for Councillors, officers and community committees

Ethical decision making

Conflict of interest

The test for conflict of interest

Identifying problems

Agency advice

Disclosure of pecuniary interests / non-pecuniary conflict of interests

Agenda

1 Apologies and requests for leave of absence

2 Declarations

3 Staff Reports – Governance and Strategy (Leading Organisation)

Extraordinary Council

16 November 2015

Staff Reports – Governance And Strategy (Leading Organisation)

16 November 2015

Extraordinary Council	16 November 2015
*Item 3.1 - Attachment 2*	Letter to Mayors from Minister for Local Government 11.11.2015