Agenda of Council - 24 February 2016

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.

Council

24 February 2016

Agenda

Statement of Commencement of Live Streaming

Acknowledgement of Traditional Owners of Bega Valley Shire

1 Apologies and requests for leave of absence

2 Confirmation Of Minutes

Recommendation

That the Minutes of the Ordinary Meeting held on 3 February 2016 as circulated, be taken as read and confirmed.

3 Declarations

Pecuniary, Non-Pecuniary and Political Donation Disclosures to be declared and tabled.

4 Deputations (by prior arrangement)

5 Petitions

6 Mayoral Minutes

7 Adjournment to Standing Committees

Recommendation

That the Ordinary meeting of the Council be adjourned for the purpose of dealing with staff reports to Standing Committees.

8 Staff Reports – Planning and Environment (Sustainability)

In accordance with Council’s Code of Meeting Practice, this section of the agenda will be chaired by Cr Taylor.

8.1 Finalisation of Amendment to Local Environmental Plan 2013: Lot 210 DP 1181811 Cabarita Place, Merimbula.......................................................................................................................................... 9

9 Staff Reports – Community, Culture and Leisure (Liveability)

In accordance with Council’s Code of Meeting Practice , this section of the agenda will be chaired by Cr Tapscott.

9.1 International Women's Day 2016 Young Women's Scholarship ........................................... 12

9.2 Evans Park, Kalaru........................................................................................................................... 14

10 Staff Reports –Economic Development and Business Growth (Enterprising)

In accordance with Council’s Code of Meeting Practice, this section of the agenda will be chaired by Cr McBain.

10.1 Hotel Australasia Eden - Option to Purchase............................................................................. 18

10.2 Update on status of proposed Economic Summit..................................................................... 33

10.3 RFT 80/15 Sale of Lot 946 and Lot 949 Main Street Merimbula, NSW................................. 35

11 Staff Reports – Infrastructure Waste and Water (Accessibility)

In accordance with Council’s Code of Meeting Practice, this section of the agenda will be chaired by Cr Fitzpatrick.

11.1 RFT 81/15 - Design & Construction of CWF Leachate Treatment and Irrigation System ... 38

11.2 NSW Container Deposit Scheme.................................................................................................. 42

11.3 Formalisation of road name: Oyster Track, Millingandi........................................................... 46

11.4 Options Assessment and Design Development - Bemboka Water Treatment Plant........... 48

11.5 Bega Valley Local Traffic Committee - 3 February 2016.......................................................... 51

12 Staff Reports – Governance and Strategy (Leading Organisation)

In accordance with Council’s Code of Meeting Practice, this section of the agenda will be chaired by Cr Mawhinney

12.1 RFT 91/15 Provision of a Microwave Communication Network Solution............................. 56

12.2 Update Twyford Hall request for support.................................................................................. 61

12.3 National Stronger Region Fund - Merimbula Airport............................................................. 62 .

13 Staff Reports – Finance (Leading Organisation)

In accordance with Council’s Code of Meeting Practice, this section of the agenda will be chaired by Cr Hughes

13.1 New South Wales Treasury Corporation (TCorp) Approval of Loan Facilities ..................... 66

13.2 Quarterly Budget Review Statement (QBRS) at December 2015........................................ 105

13.3 Certificate of Investments made under Section 625 of the Local Government Act, 1993 108.

14 Adoption of Reports from Standing Committees

Recommendation

That all motions recorded in the Standing Committees, including votes for and against, and acknowledging declarations of interest already made, be adopted in by the Ordinary Council meeting.

15 Delegates Reports

15.1 Report from the Launch of the Capital Express by Singapore Airlines and Canberra Airport Freight Forum 113

16 Rescission/alteration Motions

17 Notices of Motion

18 Urgent Business

19 Questions On Notice

19.1 Social and Affordable Housing Fund......................................................................................... 116

20 Questions for the Next Meeting

21 Items of Interest Relating to Council Business

22 Confidential Business

Statement of Cessation of Live Streaming for the period of the Closed Session.

Statement of Re-Commencement of Live Streaming

23 Adoption of reports from Closed Session

24 Resolutions to declassify reports considered in closed session

Council 24 February 2016

Item 9.2

9.2. Evans Park, Kalaru

This report has been provided as a response to the Council resolution on the Notice of Motion Item 17.2 Evans Park Kalaru – Entrance and Signage, at the Ordinary Meeting of Council on 4 November 2015.

Group Manager Community, Relations and Leisure

Background

At the Council meeting held on 4 November 2015 Council considered the Notice of Motion item 17.2 Evans Park, Kalaru – Entrance and Signage and Resolved:

That a report be provided to Councillors on the ability to add Evans Park, Kalaru to the Asset Management Plan and to identify funding for signage and formalised entrance to Evans Park and the ability to add community facilities to the site.

A meeting between Council staff and representatives of the Evans Park committee had been previously arranged for 6 November 2015. At that meeting items relating to the above Resolution were discussed. Much of the discussion referred back to determining the use of the site based around the main needs of the Kalaru community and gaps in provision of recreation facilities to meet those needs. There was also discussion regarding provision of sports fields, and in particular, what is a reasonable distance / time for people to travel to sports fields noting there are sports grounds in both Tathra and Bega. It was also raised that a sports field requires significant associated infrastructure to function properly as a sporting facility.

Issues

Legal

The property details of Evans Park are Lot 6/DP778154. The zoning is RE1. Development of most types of outdoor recreation facilities are classified as exempt development under the State Environmental Planning Policy (Infrastructure) 2007.

Strategic

The items in Council’s adopted Community Strategic Plan 2030 relevant to provision of recreation facilities are:

Community Ambition A2: Facilities and services: Our facilities and services are strategically planned, designed and maintained to meet the community needs.

Outcome Area A2.3: Safe and well maintained sporting fields, recreation areas and built facilities meet the cultural, recreational, tourism and community service needs of all ages and abilities in our community.

Policy

The Evans Park committee have been encouraged to work through Council’s Community Project Proposal Procedure.

Operational Plan

There is no reference to further works at Evans Park in the 2015/16 Operational Plan.

Items relating to sports fields provisions included in the 2015/16 Operational Plan are:

· Regional Sportsground Master Planning - Bega Recreation Ground and Pambula Sporting Complex;

· Finalisation of Sports Facility Management Plans;

· Barclay Street Sportsground Pavilion Improvements.

Asset

The recreation area at Evans Park became available for use in early 2015. It has been included in the 2016 Parks and Recreation Asset inventory update. The asset management plan and inventory records existing assets. The intent of the asset management plan is toward prioritising renewal of those existing assets. Where adopted strategic plans are in place, these are able to be identified as new and upgrade works.

The projected capital works program, based on Council’s Long Term Financial Plan, included in the adopted Parks and Recreation Asset Management Plan, notes the backlog of asset renewals identified in 2015. As a result of a high number of committed new works and major upgrade projects, the Capital Works Program identifies Council will commence working through this backlog in 2017/18.

Social / Cultural

As the community of Kalaru grows, there is no question it would benefit from improved availability of local recreation facilities. There has been a high level of interest in development of Evans Park for a number of years. Several reports and community submissions have been made to Council with the focus of on the area being developed as a sportsground, which would supplement sportsgrounds in Tathra and Bega.

Consultation

A meeting between Council staff and representatives of the Evans Park committee was held on 6 November 2015. Much of the discussion referred back to determining the use of the site based around the main needs of the local Kalaru community and gaps in the provision of recreation facilities to meet those needs.

In noting the cost to develop and maintain the infrastructure required for a functional sporting facility and the main recreational needs of the local community, the outcome of discussions was the committee would consider the primary uses of the site now being largely general parkland and less formal passive uses. This type of use changes the associated requirements of the site. For example the site will not need to cope with congested traffic movements at peak times as is required with sports grounds.

At the meeting staff also explained and discussed Council’s Community Project Proposal procedure and the reasons for, and benefits of, community groups formalising their ideas, projects and requests and in turn, those proposals received being reported to Councillors for consideration. Community Project Proposal forms and information has been forwarded to the Evans Park committee.

Financial and Resources

There are currently no Council resources allocated to undertake works at Evans Park. The only option at this stage would be to postpone or reschedule asset renewals at other sites. To date $245,000 has been spent at Evans Park with the major cost item being relocation of electricity infrastructure. Ongoing operational funding to mow the area is estimated to be $3,600 per year.

Conclusion

The community at Kalaru, through the Evans Park committee, is considering the best use of the area at Evans Park to meet their recreation needs. This will determine the scale and requirements of associated facilities. Staff encouraged the committee to prioritise their projects and then formally request Council to consider these projects through the Community Project Proposal process. While there is not funding able to be identified at present without deferring other planned works, formalising planned projects at Evans Park better enables access to grant funding and other funding opportunities as they become available.

Attachments

Nil

Recommendation

1. That the response to the Notice of Motion be noted.

2. That Council encourage the Evans Park Committee and community to identify priority projects and submit these for future consideration through the Council’s Community Project Proposal Procedure process.

Council 24 February 2016

Item 10.1

10.1. Hotel Australasia Eden - Option to Purchase

In accordance with a Council Resolution on 12 August 2015, Council agreed to an Option to Purchase the Hotel Australasia, Eden on 7 September 2015. The Option to Purchase is for a six (6) month period that expires on 7 March 2016. Council is required to resolve its position on the execution or expiration of this Option to Purchase Deed prior to March 7, 2016.

Group Manager Strategy and Business Services

Background

At the Council meeting held on August 12, 2015 Council Resolved;

1. That Council pursue the possibility of the acquisition of 142-144 Imlay St Eden (known locally as the Hotel Australasia site), seeking to restore and preserve the heritage value of this site.

2. That Council authorises the General Manager to negotiate an option, at a nominal option fee, for the possible purchase of the site, for a sum not exceeding the value as contained in the valuation report, for a period of no less than 6 months, so as to allow Council time to conduct investigations into the costs of restoration and the ongoing use of the site and for further report back to Council before finalising any action under the option.

3. That during the option period Council carry out due diligence in investigating the cost of restoration of the heritage section of the said building including engagement of an architect and quantity surveyor where necessary so as to clearly establish an overall costing for heritage renovation and further use of the building.

4. That during the option period Council consult with the community, as necessary and at appropriate times, seeking input as to the future of the site and agreed commitment from the community to take responsibility under an appropriate framework to be responsible for the restoration of the heritage part of the building, at no cost to Council, and with Council to take responsibility for the future use of the residue of the land and building.

In line with the above Resolution, on September 7, 2015 Council entered into a six month option for purchase with the owner of the Hotel Australasia site. The option for purchase expires on March 7, 2016 at which time Council will be required to have either actioned the option and moved to acquire the site or to indicate its intention not to acquire the site, at which time the option fee of $10,000 would be forfeit and all other obligations under the option be extinguished.

Council staff subsequently undertook investigatory works toward actioning item 3 of the above Resolution. Council engaged suitably qualified people to report on the following items:

· Updated Heritage evaluation, including detailed restoration action plan.

· Updated site plans, both in the current state and in the restored state. Plans were also provided showing lettable configurations, and potential usable spaces.

· Detailed costings for the design, demolition, and restoration of the above reports.

In conjunction with the community group committee which was later incorporated as Eden’s Australasia, Council staff worked through the community's expectations relating to the site.

On September 9, 2015 Council held a public meeting on the topic of the restoration of the Hotel Australasia. Presentations were given by Eden resident Peter Whiter and Council’s Heritage Advisor, Pip Giovanelli which showed the heritage values behind the current façade and talked about the potential benefits of restoring the building to its former glory. Members of the community had the opportunity to ask questions, which gave Council the ability to directly address concerns raised by members of the community.

Over the course of the past six months, Council staff has continually liaised with Eden’s Australasia group, working with the executive of that organisation including Peter Whiter and Graeme Wykes to gain an understanding of the realities of restoring this site and how this can be balanced against the community’s expectations. Over the course of the six month option, the consultation with Eden’s Australasia included;

· Meeting onsite with Eden Australasia on a number of occasions,

· Sharing of development documents received by Council,

· Council staff attending several of Eden’s Australasia meetings,

· Eden’s Australasia committee presenting to Councillors on two occasions.

Issues

Legal

The “Option to Purchase” Deed was executed on 7 September 2015 and expires on 7 March 2016. The current owner, Great Southern Developments Pty Ltd has prepared a Contract of Sale which has been reviewed by Council's legal representatives. Council has the legal prerogative to either execute or not take up the option to purchase. Should Council choose to allow the option to purchase to expire, Council will forego the option fee of $10,000.

Operational Plan

The three (3) Proposals for Council to consider, a high level assessment of the positives, the acquisition of the Hotel Australasia and its subsequent restoration and activation do not currently feature in Council’s Strategic or Operational Plans developed with the support of the community over the past five years.

Any funds or resources required to execute Council’s intent will need to be redirected from other projects.

Asset

The analysis that Council staff have undertaken with duly qualified experts suggest the project be considered in 5 stages.

1. Acquisition and securing of the site.

2. Demolition, Site Clean-up, and Regulatory Approvals

3. External Restoration

4. Internal Restoration

5. Surplus Land Activation

This report attempts to provide clear outcomes and costs associated with each stage.

1. Acquisition and Securing of the site:

The acquisition of the site is quite clear in that an Option has been negotiated between Bega Valley Shire Council and Great Southern Developments Pty Ltd. The terms of that Deed are confidential due to the Commercial in Confidence nature of the purchase price contained within the Option.

The land is located at 142-144 Imlay St Eden. The land configuration can be seen in the image below. The site is 2,886m²and is zoned B2 (Local Centre). It is currently not heritage listed.

1754317

The securing of the site would include security fencing primarily to stop the vandalism that is currently occurring and to also protect the Council from any potential liability around damage or injury caused by trespassers.

The images below were taken last year, with the damage getting worse through to the present day.

It is not anticipated securing of the site would require much in the way of funding.

2. Demolition, Site Clean-up and Approvals

Through consultation between Council’s Heritage Advisor, Council’s Drafting Consultant, Peter Whiter from Eden’s Australasia and Council staff, a heritage evaluation was undertaken and a restoration plan developed. The details of the restoration will be illustrated further in this report, however the analysis indicated a large section of the current site holds little to no heritage value and therefore should be demolished. Other elements of the site would need to be demolished and cleared in order to make the site safe for public use.

As can be inferred from the images above, the site is not in good condition and requires significant demolition, clearing and cleaning action.

The extract below from the heritage report shows the red outlined area being the core heritage component of the current building.

However, balancing the heritage value with the commercial realities, in that the restored site will have to be operationally viable, the following floorplan is recommended.


GROUND FLOOR	FIRST FLOOR

Ground floor plan prepared as part of this report with rooms named as per surveyed drawing. Numbers indicate proposed structural modifications as below:-

1. Demolish dining area and re-establish as a courtyard or open space.

2. Demolish toilets and open Foyer through to Courtyard and shared toilets on north wall.

3. Demolish the non-brick section of building back to earlier brick wall.

4. Return façade to historic configuration and construct access ramp off Imlay Street.

Upper floor plan with numbers indicating proposed structural modifications

1. Reduce back verandah to original dimensions and demolish toilets from in front of stairwell window.

2. Demolish former flat above kitchen and bottle-shop and reinstate roof to retained areas below. Alternatively ‘mothball’ the flat pending a future decision.

3. Demolish selected internal walls to improve room size and circulation. Reconfigure toilets and ensuites to suite future use.

Council’s advice has also been that due to the state of the site, it would be inadvisable to allow the community or volunteer support to undertake any required work during this demolition stage. The risk to the volunteers of injury or contamination would be too great. As such, this entire stage would need to be conducted by qualified, licensed professionals.

The cost estimate provided to Council to complete this stage is as follows (Excl GST):

	External Building	Ground Floor	First Floor
Design	$35,000	$25,000	$20,000
Demolition	$56,250	$223,250	$146,250
TOTAL	$91,250	$248,250	$166,250
GRAND TOTAL: $505,750

It is acknowledged the estimating process around site demolition and clean-up is very conservative due to the nature of disposal. For example, there could be a significant difference in the cost to demolish this site if asbestos or some other contaminate is identified. This estimate tries to give a value that the owner is not likely to exceed. In reality it may cost less, however in order to assure the community that Council has considered all possibilities this value has been deemed a reasonable estimate. The demolition works would need to be carried out via competitive tender process.

3. External Restoration:

It is apparent that most of the community passion surrounding the Hotel Australasia centres on the external façade of the building. As a result Council moved to isolate the external restoration from the internal restoration to aid the community and Council in understanding what is involved in order to achieve a restored Hotel Australasia.

Once again, through consultation between Council’s Heritage Advisor, Council’s Drafting Consultant, Peter Whiter from Eden’s Australasia and Council staff, a restoration plan has been developed. Council staff believe they have a comprehensive plan of what needs to occur in order for the external façade of Hotel Australasia to be restored to its original condition.

Then….. the below photograph shows the Hotel as it appeared circa 1940s

Wellings, C. E. (Charles Eden), -195- Hotel Australasia, Imlay Street, Eden, ca. 1940 [picture]

The Hotel Australasia as it appeared in 1940 (photo courtesy of National Library of Australia).

Now…the below photograph shows the Hotel now.

The external restoration plan in conjunction with the site demolition plan would largely restore the Australasia to its original 1904 façade. All parties involved understand the need to try and restore the heritage value of the site without compromising the financial value of the site. With that in mind, options were provided for mitigation if the primary options could not be completed. For example,

The main wall behind the verandah was initially a very attractive face brick that was unfortunately cement rendered as part of the 1960s make-over. The render seems firmly attached to the brick substrate as there is no obvious ‘drumminess’ when tapped. It may be possible to remove the render, but more than likely a fair amount of brick would come off at the same time leaving an unsatisfactory surface. It is also likely that the historic brick work has been damaged by construction of the concrete façade, as beams etc are likely to have been ‘keyed’ into the original. It may be worthwhile doing a small test to see how easily the render comes off, although the most likely outcome will be to leave the render in place.

Leaving the wall render in place and painting it is appropriate in terms of the building’s historic character, as the front and sides of the wings were initially rendered and painted and it was not uncommon for buildings of this period and style to be fully rendered. It would be appropriate to paint the former brick wall in a darker tone to reflect the fact that it was once exposed brick.

The intention is to restore the original brick work, however if this proves infeasible then an alternate approach has been identified that can still offer some heritage value to the community.

The following image provides a basic view of the scope of the external restoration with the goal of restoring as close as possible to the image above.

Substantial community interest and support has been offered to Council for this stage of the project. Eden’s Australasia has estimated that through fundraising activities they could contribute approximately $160,000 towards the external restoration of the site. They have also commenced a register for qualified tradespeople to offer time and expertise towards the restoration activities. The Chair of Eden’s Australasia Mr Peter Whiter has also offered his time and expertise to project manage this stage.

It has also been noted there are a number of heritage grant programs available to projects such as this. These programs are extremely competitive and predominantly of a small value. If Council were to proceed with the restoration then it may resolve to pursue some of these opportunities.

As indicated previously, the purpose of this report is to provide Council with a realistic potential liability if it proceeds with this project. In those terms, what would the full cost be if Council was left to develop the site on its own with no external support, appreciating the fact there appears to be real external support being offered? Unfortunately, Council has been involved in many projects in the past where that support has wavered, or not been able to be utilised or scope and costs have exceeded the initial expectations and eventuated in Council, and through them the broader community, becoming liable for all costs associated with the project. It is prudent that Council at least prepare accordingly.

In summary, the costing estimate provided to Council to complete this stage is as follows (excl GST):

	External Building
Structural	$232,500
Fit Out	$25,000
TOTAL	$257,500

4. Internal Restoration:

A secondary concern for the community was to be able to restore and use the original internal structures in any future development of the Hotel Australasia site. With that in mind a detailed restoration plan was developed for the internal area of the Hotel Australasia. As indicated earlier in this report, a larger footprint was retained than that which was necessary under the heritage evaluation report to ensure large enough workable spaces which could be used by commercial tenants in the future.

The image below illustrates the potential lettable spaces that could be activated under this development.

The table below summaries the spaces and their sizes as well as potential rental returns as advised by local real estate agents in Eden.

Area Desc	Size	Value	Note
Blue shading	146sqm	$18,000
Yellow Shading	176sqm	$20,000	Incl Kitchen
Sand Shading (Imlay St)	77sqm	$12,000
Grey Shading	73sqm	$7,000

The upstairs section of the site was excluded from this analysis due to the nature of the structure. The upstairs is made up of a number of smaller rooms. Some of these smaller rooms could be combined to create larger spaces but it was considered unrealistic in the short term. With the installation of suitable access the space could be used for community meeting spaces, etc in the short term.

The restoration plan for the internal restoration of the building is largely made up of detailed work such as repairing and preparing wall surfaces for painting, flooring, cornices, skirtings, architraves, etc. It is a large building with a large volume of internal surfaces.

The costing estimate provided to Council to complete this stage is as follows (Excl GST):

	Ground Floor	First Floor
Structural	$90,000	$91,250
Fit Out	$186,000	$195,000
TOTAL	$276,000	$286,250
GRAND TOTAL: $562,250

The plans and estimates provided in this report simply restore the building to its original condition and make the building safe. Prior to any commercial or community use, the building would have be brought to a modern standard. Where practical, allowances have been made for modern Building Code of Australia (BCA) standards such as door widths, etc. However, no estimates have been undertaken on the additional processes that would be needed including: modern power needs; plumbing; access (elevator); etc. As a result Council staff has not included potential rents as leverage against the capital cost of restoring the building as they will more than likely be required to fund the updating of the building for commercial use.

Eden’s Australasia has offered volunteer and financial support in relation to the internal restoration but have confirmed their priority is the external restoration.

5. Surplus Land Activation:

While not considered as a major driver for the acquisition of the site, the location of the Hotel Australasia offers some community value in terms of community access.

Recently Council acquired land in Chandos Street Eden to allow for better vehicular access to the Chandos Street Carpark as illustrated on the map below.

As indicated to Council at the time of that acquisition, there are no publicly owned access routes from the Chandos Street Carpark through to Imlay Street. The acquisition of the Hotel Australasia would allow public pedestrian access from the Chandos Street Carpark through to Imlay Street.

6575007

The internal floor plan has been designed to allow prospective tenancies to have a presence onto the laneway allowing for frontage, entryways, even possible outdoor seating.

In addition, the heritage aspect of the Hotel Australasia once fully restored utilises only a small portion of the total land parcel. The image below provides an illustration of the available land.

8884880

This surplus land is approximately 1,400sqm and is zoned commercial. Therefor there is some commercial value that could be realised at some point in the future should Council acquire the site. This value has not been assessed at this time.

Social / Cultural

According to Bega Valley Shire Council’s Heritage Advisor, Pip Giovanelli (2013) has previously advised:

The Hotel Australasia is historically significant for having been constructed in 1904-05, at a time when there was optimism in Eden’s bright future. It is associated with notable local identity Sabina Pike and builder John Hines and was used by dignitaries Australia’s Governor-General Lord Northcote and NSW State Governor Sir Harry Rawson. The building in its current form has some aesthetic value for its scale in the main street, however is has much greater significance for its restoration potential and its ability to reinstate a dramatic architectural and historical presence back into Imlay Street. In this capacity it is rare.

The Hotel Australasia is historically significant for having been a major component of Eden’s hospitality industry for over 100 years from 1904 to 2010. It was one of the two main hotels operating over that time. It is also historically significant for having been erected in anticipation of Twofold Bay becoming the federal port. There had been much anticipation and speculation in various parts of the south east of NSW regarding the site of the new National Capital and its port and the name, stature and quality of the Hotel Australasia was a function of this. The hotel played a major role in fostering Eden as a tourist location in the early part of the 20th century when coastal shipping was still strong and road transport increasing in popularity. The hotel reflected a time of considerable optimism in Eden, which faltered in the latter part of the century.

Economic

As advised earlier in this report, there does not appear to be much of a rate of return when factoring in the direct cost of restoration against the revenues that could be generated from the restored property.

However, with the growing tourism focus of Eden and the Bega Valley and with significant investment in the Snug Cove Wharf extension and Safe Harbour programs, having a fully restored building in the main street of Eden showcasing the historic elements of the town would be a very positive experience generator for visitors to the region.

The indirect economic benefits of having something unique are difficult to quantify but can be safely assumed to have a real value to the region.

Strategic

Council has two options to consider;

Option 1: Let the Option expire. Council has previously offered support to private developers to retain and restore the external façade. These incentives could remain on any future development. Council could still offer support towards any interested party who is willing to restore the site as per the community’s findings. The unknown being, can a private developer find a commercially viable proposition that retains the heritage aspect of the site while developing the surplus land into a profitable venue?

Option 2: Acquire the site and commit to the restoration of the site. Council needs to consider the opportunity cost of taking on this project. At the moment Council has two other projects scheduled for Eden that are on the priority list for future works. These are the completion of the Town Centre (Spiire Report) and the connection to the wharf. Reallocating funds to the Hotel Australasia could result in those projects being deferred to later in time to allow for Council to find those additional funds.

Should Council acquire the site, the process around the restoration can take two paths. One would see Council outlay funds as indicated previously, to have the site cleaned and externally restored. This would provide the restored venue for the community and give prospective tenants the opportunity to see the finished product and hopefully convince them to take long term tenure. Alternatively, Council could acquire the site and look for commercial or community tenancies to ensure the viability of the project, maximise the chances of external funding and to ensure the committed support come to fruition prior to commencing any capital works. Both options will require approximately the same value of capital allocation.

Consultation

As indicated earlier in the report, over the course of the past six months, Council staff have met and liaised with Eden’s Australasia group, working with the executive of that organisation including Peter Whiter and Graeme Wykes to gain an understanding of realities of restoration of this site and how those realities can be balanced against the community’s expectations. Council also hosted a community meeting on the project in Eden.

Financial and Resources

Council staff estimates the total capital allocation that should be assigned to this project is $2m. This allocation would fund stages 1-5 as indicated earlier in this report.

Assuming Council wants to make the site safe upon acquisition an initial allocation of $1m should be made in the next available budget. It is expected that by the time the property settles and appropriate approvals are received the $1m allocation would occur in the 2017 financial year. Council will be able to consider this project in the budget process which occurs in April 2016. However, the acquisition prices have been agreed as part of the Option. An allocation of $1m would fund the acquisition, demolition, clean up and external restoration of the site.

As indicated earlier in the report, there is currently no allocation of funding available towards this project. Any consideration towards the acquisition of the site should be accompanied with corresponding funding to ensure the project is funded and can be given all chance of success once restoration has commenced. Any external support whether through grants or community support would allow the capital allocation to be refunded back into Council’s revenues for future allocation to other projects.

If Council resolves to let the Option expire then costs already expended would be treated as operational costs in the 2016 budget. Council has made internal allocations for these funds and they will have little impact on Council's 2016 financial results.

Conclusion

Council resolved to undertake due diligence on the Hotel Australasia site to determine whether Council could responsibly acquire the site with the view to retaining and restoring the heritage value of the site for the community.

It is possible to restore the Hotel Australasia as close as possible to its original condition for approximately $2m. The community group has made their views well known and have offered support and assistance through this process, however if Council chooses to proceed with this project it becomes the sole liability and risk holder and should consider the project on such a basis.

Council needs to consider its position relating to the execution or expiration of the Option to Purchase Deed and provide clear guidance on how it wishes the project to proceed

Attachments

1 . Hotel Australasia Group - Peter Whiter - Commitments

Recommendation

1. That Council resolves its position on the execution or expiration of the Option to Purchase Deed between Bega Valley Shire Council and Great Southern Developments Pty Ltd.

Council 24 February 2016

Item 10.2

10.2. Update on status of proposed Economic Summit

Council has previously provided support to staging an Economic Summit. An update on the dates for the Summit is confirmed.

Group Manager Strategy and Business Services

Background

Council has planned holding and Economic Summit in the 2015/16 year. It will now be held early in the 2016/17 financial year.

The model to be followed is the Tourism Industry Summit staged in collaboration with Sapphire Coast Tourism in late 2014. The Tourism Industry Summit resulted in a number of benefits, achievements and partnerships. It also served as a rallying point for the tourism industry sector of the Bega Valley Shire and neighbouring regions.

Initially it had been expected the Economic Summit would be staged in the October/November period of 2015.

For practical reasons related to the timing of the adoption of the BVSC’s Economic Development Strategy and the commencement of the recently appointed Economic Development Manager, it was then proposed the Economic Summit be held in 2016.

Earlier advice proposed the Summit be held in March and then May this year.

Due to the availability of key guests, particularly Federal Ministers, the dates of the Summit are now confirmed as being Thursday 28 and Friday 29 July 2016.

A number of other economic development conferences have been observed and researched. The various approaches and levels of success other similar events have experienced, inform the proposed style and format for this Summit. It is recommended the Economic Summit be held over two days at the Bega Valley Commemorative Civic Centre.

Day One: would be run in a manner that seeks advice and collaboration from experts in various fields which Council believes require out of the box thinking and clear, long term strategies in order to deliver long term meaningful benefits to the community.

Topics being considered include:

1. Strategic transport infrastructure needs and opportunities e.g.: Twofold Bay/Eden Port, freight routes, and improved air services.

2. Technology and the benefits of attracting and supporting start-up companies/innovators and nurturing a community of such (technology hub).

3. Supply chain challenges and gaps and how they can be addressed to benefit regional producers and connect them with distributors and retailers.

4. Skills training and education opportunities – the relationship to jobs creation, talent retention, economic growth and the direct correlation to meaningful employment.

Day Two: would allow for presentations by industry experts to showcase strategic opportunities and enterprise innovations across the area in sectors such as technology, tourism, primary industries and education.

A dinner would be held on the evening of Day One of the event.

Issues

Logistical considerations including venue, transport, marketing, registrations, accreditation, ancillary activities such as dinner will be planned and regular updates to Council in the period leading up to the summit will occur.

The target attendees will ensure the best available thinkers and influencers are in attendance.

Social / Cultural

The Economic Development Summit is an opportunity to highlight experiences and attractions unique to the Bega Valley to participants from outside the region. It is also an opportunity to present the region as a desired location for business events.

Economic

The Economic Development Summit is an opportunity for communication, collaboration, ideas and agreed actions that will lead to the achievement of objectives adopted in the Economic Development Strategy.

Strategic

Staging an Economic Development Summit is a strategic objective of the Economic Development Strategy.

Consultation

Internal and external (business community) consultation will be part of the program development process. Council staff will consult with the local community and targeted guests to ensure the most effective content and dates are confirmed.

Financial

Funding source		Amount
21520.2100.2100 Economic Development Project Expense	$	34,500

The net costs for this event will be funded from the Economic Development budget with attendance revenues used to offset costs.

Resources (including staff)

Event management for this Summit is intended to be provided by a professional event contractor under the direction of the Economic Development Manager.

Conclusion

The Economic Development Summit aligns with the Economic Development Strategy. The Summit will provide significant and coherent results that will focus and prioritise the tasks, relationships, timeframes and opportunities (and challenges) in order to achieve tangible outcomes for the regional community.

Attachments

Nil

Recommendation

That Council note the current status and timeframes for holding the 2016 Economic Summit.

Council 24 February 2016

Item 11.1

11.1. RFT 81/15 - Design & Construction of CWF Leachate Treatment and Irrigation System

This report details the outcomes of evaluation of Tender 81/15 for design and construction of the Central Waste Facility Leachate Treatment and Irrigation System and recommends that Council decline to accept any Tender.

Group Manager Transport and Utilities

Background

Leachate is any liquid that comes in contact with waste in a landfill. The majority of leachate is generated by infiltration of rainfall into and through waste which has been placed in the landfill. Leachate can contain an array of organic and inorganic contaminants, and leachate quality/composition and the amount generated can vary substantially over the course of a landfill’s life.

In 2009, a Leachate Disposal Options Report was prepared by GHD as part of the Central Waste Facility (CWF) Environmental Impact Statement (EIS). The preferred option for management of leachate was treatment and on-site irrigation. This option was preferred due to reduced environmental risks associated with treatment and a higher potential for regulatory approvals and community acceptance. Design and construction of the leachate treatment and irrigation system was deferred until field data relating to actual leachate quantity and quality could be recorded.

The need for long term sustainable treatment and disposal system was recognised during the EIS stage of the CWF project. The Environment Protection Authority (EPA) licence for the site requires Council to:

“By 30 June 2016, the licensee must provide the EPA with their review and confirmation of the preferred leachate management strategy in accordance with the Bega Valley Shire Council Central Waste Management Facility Environmental Impact Statement (November 2009), Appendix O - "Central Waste Facility: Leachate Disposal Options Report, GHD, October 2009" and submit a report detailing the proposed implementation of this strategy. The Report must:

a) describe the performance of the leachate management system, including the verification of the quantity and characteristics/quality of the leachate at the premises since commencement of waste disposal operations; and

b) recommend a suitable leachate treatment plant designed to cater for leachate generation during a 10% Annual Exceedance Probability (AEP) rainfall year; and

c) include timeframes for the installation and commissioning of the treatment plant and disposal system.

By 30 December 2016 the licensee must have installed and commissioned the approved leachate treatment plant and disposal system”.

In view of the EPA licence conditions and timeframes, Council undertook a two stage tender process to identify potentially suitable treatment processes which could be evaluated technically and financially.

Expression Of Interest (EOI) Process

The Tender (RFT 81/15) follows the call for Expressions of Interest (EOI 48/15) that closed on 5 August 2015. EOI 48/15 attracted six submissions as follows:

Company	Comment	Technology proposed
EnviroPacific Services	Estimate consistent with budget	Engineered wetland
Aquatec Maxcon	Exceeded budget	Lagoon treatment or sequencing batch reactor or reverse osmosis
MD Water	Non-conforming	Reverse osmosis
Precision Civil Infrastructure	Exceeded budget	Reverse osmosis or sequencing batch reactor
SAS Water Solutions	Estimate consistent with budget	Membrane bioreactor plus reverse osmosis
Ixom Operations	Estimate consistent with budget	Reverse osmosis

The EOI process highlighted the various potential treatment processes available. The EOI process identified a maximum of three tenderers to be selected for detailed submissions, the proposals that estimated well in excess of the project budget were passed over.

Tender Process

Detailed tenders (RFT 81/15) were consequently invited from Enviropacific Services, SAS Water Solutions and Ixom Operations. Tender submissions were received from Enviropacific Services and SAS Water Solutions with Ixom declining to tender citing workload and higher priorities.

Company	Technology proposed	Comment
Enviropacific Services	Engineered wetland (recommended) or sequencing batch reactor	Added SBR as an alternative but provided minimal detail
SAS Water Solutions	Reverse osmosis	Removed MBR from process citing low concentrations of organics and ammonia.

The tenders were evaluated in accordance with the evaluation criteria, weighting and scoring criteria as follows.

QUALITY/TECHNICAL ASSESSMENT
Quality - % Weighting of Total Score	50%
Project Appreciation	20%
Level of preliminary conceptual design information supplied	20%
Local benefit	5%
Project Programme	5%
PRICE ASSESSMENT
Lifecycle cost comprising Capital plus annualised Operation and Maintenance costs	50%

Technical Considerations

Council referred to the NSW EPA’s draft 2015 Landfill Guidelines as the basis of its specification. The draft Guidelines suggest a range of options available for treatment, including all of the technologies considered in the tender process. The Guidelines also identify water quality requirements to be met prior to irrigation.

Whilst all the systems put forward during the tender process were supported by performance claims that would satisfy the EPA requirements, there are few leachate treatment and irrigation systems currently licensed by the EPA. It has therefore been problematic to validate system performance with real world data.

Under these circumstances it is difficult for Council to provide evidence-based technical assurances to the EPA. The EPA has therefore requested Council takes a precautionary approach including a review of the proposed approach to leachate management on site.

Council has a substantial amount of leachate storage capacity on site, and a delay to the program in the short to medium term is of no technical consequence. However the delay does provide additional time to further characterize leachate quality and generation rates.

Issues

Legal

Tender has been called in accordance with the Local Government Tendering regulations.

Consultation

The NSW EPA is a significant stakeholder in this project as licensor of the site and Council staff has met several times with the EPA to discuss various alternatives for delivering sustainable leachate disposal. However at this stage the EPA has requested Council not proceed with any treatment proposal pending further consultation and further review of the proposed approach outlined in the EIS.

Financial

The financial considerations of the tender evaluation included both capital cost and ongoing operation and maintenance costs which do tend to increase with technical and engineering complexity. The ability for Council to obtain adequate levels of maintenance and repair services locally is also a significant consideration.

Conclusion

Sustainable long term management of leachate at the CWF is essential to the operation of the landfill site. This is recognised and articulated in the EPA Licence conditions. However, given the uncertainty regarding regulation of any proposed solution, at this stage Council is advised against acceptance of any tender.

Attachments

Nil

Recommendation

In accordance with clause 178 of the Local Government (General) Regulation it is recommended:

1. That Council declines to accept any Tender and advises tenderers of the outcome.

2. That Council cancels the proposal for the contract.

Council 24 February 2016

Item 11.2

11.2. NSW Container Deposit Scheme

Submissions have been called on a proposed Container Deposit Scheme.

Group Manager Transport and Utilities

Background

On 21 February 2015, the Premier, the Hon. Mike Baird MP, announced that if elected, the NSW Government would implement a Container Deposit Scheme (CDS) by 1 July 2017. The primary objective of the CDS is to reduce litter.

CDS’s are based on the principle that the cost of recovery and recycling of the product is funded directly by the consumer at the point of sale. The revenue is then used to set up systems and infrastructure for recovery and recycling, as well as financing an incentive scheme usually in the form of a 10c deposit. Through this incentive, the NSW Government aims to reduce the littering of drink containers, which make up 44% by volume of litter.

CDS’s are currently in operation in South Australia and the Northern Territory. The proposed NSW scheme is in consultation phase and a discussion paper has been released by the Environment Protection Authority (EPA). Local Government NSW is represented on the advisory panel for the proposed CDS and has released a report on the impacts of CDS on kerbside recycling and Councils.

This report outlines some of the effects the CDS may have on Bega Valley Shire Council (BVSC). Local Government NSW has requested that Councils make their own submission direction is sought from Council in relation to the key details of that submission. The deadline for submissions is Friday 26 February 2016.

Issues

CDS is a form of extended producer responsibility, which in principle helps to shift the cost of waste management away from a socialised model, funded through domestic waste management charges, to a consumer pays model, usually funded through a higher purchase price on a product.

The beverage industry has put forward an alternative proposal which is not based on a returnable deposit. Called “thirst for good” it comprises a $15million annual investment in programmes aimed at reducing littering. The Australian Food and Grocery Council position is that a legislated container deposit scheme is too expensive, will impact negatively on kerbside recycling and cost consumers and industry more. A higher price on beverages may mean fewer beverages will be sold and therefore affect the profitability of the industry.

Incentives

CDS incentives may be financial, non-financial or both. Evidence from other jurisdictions suggests financial incentives are the most effective. Setting an incentive in line with other states is desirable (i.e 10c per container).

It is recommended that Council support a scheme based on financial incentives and the returnable deposit is in line with the practices in South Australia and the Northern Territory.

Interaction with Kerbside Recycling

A CDS will cause a degree of diversion away from the kerbside recycling system and the scale of this diversion is difficult to estimate. This will have an effect on the commercial operations of the material recovery facility (MRF). Council does not own or operate a MRF, nor do we have a direct commercial arrangement with any MRF. Council’s waste collection contractor takes ownership of recyclable materials from the point of collection and has a commercial relationship with a MRF, currently Shoalhaven Recycling in Bomaderry.

The proposed CDS will take effect on July 1, 2017, which coincides with the term of the current waste collection contract. Whilst Council has the opportunity to extend the contract for up to two years, consideration would need to be given to any impacts relating to a reduction in kerbside recycling volumes, along with any other proposed service changes when negotiating a contract extension.

The position of Local Government NSW is that CDS represents a significant cost saving for Councils and their communities, due to a reduction in kerbside volumes. This assertion is based on a consultant’s report indicating a reduction in kerbside recycling costs of 19-47%.

A potential reduction in cost exists in bulk transport and acceptance of recyclables at the MRF. However, the assumption that fewer collection trucks would be required as each truck would be able to service more households is unlikely to be realistic in the local context. Whilst it remains to be seen, the overall cost of the kerbside recycling system is unlikely to be significantly affected by a moderate reduction in kerbside volume in the Bega Valley.

In terms of the commercial viability of MRFs due to reduced throughput, studies indicate that provided the operators of MRFs are able to redeem the deposit on remaining containers collected via the kerbside system, the additional revenue completely offsets the revenue lost due to fewer containers in the kerbside system. However, if the entire deposit is passed back to Councils or their collection contractor, the offset no longer exists with a potential negative impact on MRF viability, and/or an increase in MRF acceptance charges.

If the CDS does not apply to containers collected through the kerbside system, then neither the MRF nor the Council or the collection contractor would derive a financial benefit and the financial windfall of unredeemed deposits would remain with the beverage manufacturer.

Irrespective of whether Council or the MRF redeems the financial benefit of containers in the kerbside system, or whether the CDS does not apply to the kerbside system, the cost of the kerbside collection system to Council is unlikely to change significantly.

It is more effective for the MRF to redeem the deposit, offsetting losses due to diversion of materials from the kerbside system. If the commodity value is higher for the MRF, then it may be attractive for the MRF to compete for business via reduced acceptance charges. This may then provide a potential commercial benefit to Councils.

It is therefore recommended that Council supports a scheme where the MRF is able to redeem deposits under the CDS.

Scope of Containers

Because the objective of the CDS is to reduce litter, the types of containers to which the CDS would apply should be those that are represented in the litter stream.

The evidence on the sizes and types of containers used in public places and found in the NSW litter stream shows the scope of containers for a NSW CDS targeting litter should include all containers from 150 millilitres to 1 litre, except for containers of plain milk and glass containers of wine or spirits.

However, the NSW Government may choose to harmonise with the Northern Territory and South Australian CDS’s, which in addition to the above containers include a number of containers over 1L including plain milk, which do not appear commonly in the NSW litter stream. Harmonising the NSW CDS with other jurisdictions has the benefit of reducing consumer confusion and labelling costs for the beverage industry.

It is recommended that Council support a CDS with a scope of containers which is harmonised with the South Australian scheme.

Collection Infrastructure

The type of collection infrastructure required is closely related to the incentive. A larger incentive will likely yield more material and require more significant collection infrastructure than a smaller incentive.

A key consideration for the Bega Valley is accessibility of collection infrastructure. There are two main types of return methods used by existing CDSs: “return to retail”; and, “return to depot”. Return to retail schemes are most commonly used for refillable bottles, where the retail delivery vehicle is back-loaded with empty containers/bottles to be returned to the manufacturer and refilled.

Although refillables are largely phased out, return to retail has significant benefits, as supermarkets are located widely throughout the state, and consumers would be able to return containers without making a separate journey to a depot.

Return to depot is the approach taken in South Australia and the Northern Territory. Although it is potentially less convenient for consumers, it has the benefit of enabling aggregation of larger quantities of materials, which has logistical advantages.

Reverse vending machines which, as the name suggests, return a container deposit in exchange for a container have also been trialled in the Sydney Central Business District (CBD). It is unlikely such technology would be appropriate in unsecure areas of the Shire, with the possible exception of shopping centres. It tends to be beachfronts and waterfront areas in the Bega Valley which are most popular with residents and visitors consuming beverages away from home. It is uncertain whether reverse vending machines would be practical or desirable at these locations as they require power and security, along with significant throughput (10,000 – 80,000 containers per month) in order to make them viable.

Irrespective of the type and location of collection infrastructure that is developed, or who is charged with operating the collection points, it is vital for regional and remote communities that the cost of long distance transportation does not impact on the viability of the scheme locally.

It is therefore recommended that Council supports a CDS that is universally available throughout NSW and effectively equalises the cost of transportation.

Governance

The CDS should be designed in a way that it is flexible enough to enhance efficiency, but at the same time ensuring sufficient controls are in place to ensure the objectives of the scheme are met. The key decision is whether the scheme should be state run or industry run, or a combination.

An industry run scheme has a built-in incentive for cost efficiency, and this is the model which operates in South Australia and the Northern Territory. However inefficiencies have arisen in these jurisdictions where multiple “supercollectors” operate. CDS’s may suffer a range of governance problems ranging from fraud through to cross border transport, which are discussed in detail in the EPA’s discussion paper.

Council’s recent experience with the National Computer and Television Recycling Scheme, which also adopted a model of multiple collectors demonstrate the importance of regulations which do not disadvantage regional communities, and the need for the community to be able to clearly identify what organisation is accountable for delivering the objectives of the scheme.

It is recommended that Council support a scheme that is run by a single organisation directed by representatives from all relevant stakeholder groups including Local Government.

Conclusion

It is proposed that Council lodges a submission in support of a refund based CDS for NSW in line with the following recommendation.

Attachments

Nil

Recommendation

1. That Council supports a CDS based on financial incentives and the returnable deposit is in line with the practices in South Australia and the Northern Territory.

2. That Council supports a scheme where the MRF is able to redeem deposits under the CDS for containers collected in the kerbside system.

3. That Council support a CDS with a scope of containers which is harmonised with the South Australian scheme.

4. That Council supports a CDS that is universally available throughout NSW and effectively equalises the cost of transportation

5. That Council support a scheme that is run by a single organisation directed by representatives from all relevant stakeholder groups including Local Government.

Council 24 February 2016

Item 11.4

11.4. Options Assessment and Design Development - Bemboka Water Treatment Plant

This report details the evaluation of RFT 04/16 - Options Assessment and Design Development: Bemboka Water Treatment Plant and recommends acceptance of a preferred tender.

Group Manager Transport and Utilities

Background

The water supply to the township of Bemboka is sourced from the Bemboka River. The only treatment is disinfection using chlorine prior to the water being supplied to customers. Due to the variable water quality in the Bemboka River this poses significant difficulties in maintaining water quality that complies with the Australian Drinking Water Guidelines (ADWG).

In response to this issue, the provision of a water treatment plant capable of treating up to 400kl/day has been included in the Capital Works program. The plant will ensure the water supplied to Bemboka residents complies with the ADWG.

NSW Public Works has been engaged to manage the concept and documentation phases for the Bemboka Water Treatment Plant to allow construction of this facility in compliance with the NSW Department of Primary Industries (Formally NSW Office of Water) requirements.

It is intended the actual construction of the water treatment plant will proceed under a separate design and construction contract to be commenced towards the end of 2016.

Tenders were advertised on the NSW Government eTendering system and local newspapers from 9 November 2015 and closed on 10 December 2015.

A tender evaluation plan consistent with the NSW Local Government Tendering Regulations and the Conditions of Tendering was prepared and endorsed by the tender evaluation committee prior to the close of tenders.

The weighting ratio of price to non-price criteria was 50:50.

Eight tenders were received by the due date 10 December 2015. The tender evaluation was carried out in accordance with the Tender Evaluation Plan with a preferred tender identified in this process. See details in the attached Confidential Memorandum to Councillors.

The evaluation was carried out on the basis of value for money, with scoring and weighting of price and non-price criteria.

The price criteria are:

· the tendered fee

· hourly rates for variations

· cost of departures

The non-price criteria and their relative weightings are:

• Proposed methodology 10%

• Experience in similar engagements 10%

• Proposed personnel 30%

Total non-price weighting 50%

Issues

Legal

The tendering process complies with the Local Government (General) Regulation 2005 (the Regulation).

Operational Plan

The proposed works are in accordance with Council’s Operational Plan.

Environmental / Sustainability

A review of environmental factors (REF) will be undertaken during the design development process. Substantial tree screening will be incorporated into the design. To help meet sustainability goals, consideration will be given to utilising solar power to run the plant.

Asset

Construction of the plant is being undertaken in accordance with the Water Supply Asset Management Plan.

Social / Cultural

Nil social impacts. Cultural heritage matters will be assessed as part of the REF process.

Consultation

Public consultation during the options development phase of the project is included in the scope of works of the contract. Also include is the production and distribution of at least three separate community newsletters and the establishment of a web page allowing communication and questions from the public. Issues raised on the web page will also be addressed as part of the REF process.

Financial and Resources

The provision of the Bemboka Water Treatment Plant has been included in the Capital upgrade works of the LTFP approved as part of the 2015 Asset Management Plan.

Conclusion

This report recommends award of the contract in accordance with details presented to Councillors in the Confidential Memorandum attached to this report.

Attachments

1. Memo RFT 04/16 (Councillor Only) (Confidential)

Recommendation

1. That Council accept the recommendations as outlined in the Confidential Attachment.

2. That Council accept the tender submission from <insert> in relation to Options Assessment and Design Development: Bemboka Water Treatment Plant as described in RFT 04/16, in the amount of <insert> (inc. GST), subject to variations, provisional sums and prime cost items.

3. That authority is delegated to the General Manager to execute all necessary documentation.

4. That other tenderers be advised of Council’s decision.

Council 24 February 2016

Item 11.5

11.5. Bega Valley Local Traffic Committee - 3 February 2016

This report recommends Council adopt the advice of the Bega Valley Local Traffic Committee from their meeting held 3 February 2016.

Group Manager Transport and Utilities

Background

The Bega Valley Local Traffic Committee held a meeting on 3 February 2016, the Minutes of which have been distributed separately. It is a requirement that Council formally adopt the recommendations prior to action being taken. The recommendations were supported unanimously by the Committee.

Attachments

Nil

Recommendation

That Council adopt the Traffic Committee recommendations as follows:

Merimbula Fun Run – 29 May 2016

1. That, subject to conditions, sections of the following Council roads be temporarily closed from 8am to 12pm on Sunday 29 May 2016 for the Merimbula Fun Run:

a) Full Closure of Ocean Drive, Merimbula from Ford Oval to Fishpen Road intersection;

b) Full Closure of Fishpen Road, Merimbula between Ocean Drive and Market Street intersections;

c) One lane of Market Street, Merimbula between Fishpen Road and Beach Street intersections;

d) Full Closure of Beach Street, Merimbula between Market Street and Main Street intersections;

e) Full Closure of Main Street, Merimbula between Cameron Street and Randolph Street and Henwood and Lake Street intersections, and one lane closed between Randolf and Henwood Street;

f) Full closure of Lake Street, Merimbula between Main Street intersection and the Merimbula Wharf.

2. That the proposed traffic arrangements for the Merimbula Fun Run on Sunday 29 May 2016, be deemed a Class 2 special event and it be conducted under an approved Traffic Control Plan, in accordance with the Roads and Maritime Services (RMS) Traffic Control Manual.

3. That persons involved in the preparation and implementation of the Traffic Control Plan must hold the appropriate RMS accreditation.

4. That persons involved in the preparation and implementation of the Traffic Control Plan must hold the appropriate RMS accreditation.

5. That organisers have approved public liability insurance of at least $20 million indemnifying Council, Police and Roads and Maritime Services by name for the event.

6. That organisers have written Police approval prior to conducting the event.

Convoy for Kids & Families Affected by Cancer- 5 March 2016

1. That persons involved in the preparation and implementation of the Traffic Control Plan must hold the appropriate RMS accreditation.

2. That organisers fully implement an approved Special Event Transport Management Plan.

3. That organisers have approved public liability insurance of at least $20 million indemnifying Council, Police and Roads and Maritime Services by name for the event.

Bus Stop Extension, Auckland Street

1. Council approves the relocation of the Auckland Street bus zone from its current location, to 18.8 metres south.

2. Council approves the relocation of the 2 hour parking zone 18.0 metres to the north.

“No Stopping” sign – Pambula Beach Interchange

1. Council approve the installation of a “No Stopping” zone around the perimeter of the island encompassing the public toilet block at the Pambula Bus interchange, excluding the accessible parking area.

“No Stopping” sign – Lumen Christi

1. Council approve the instillation of a “No Stopping” zone 8:30am – 9:30am and 3:00pm –4:00pm school days, commencing at the southern point of the existing concrete dish drain at the southern end of the existing “Kiss and Drop” zone within Culgoa Crescent to the southern point of the exit driveway of the bus lane, being a length of 52 metres.

Tathra Mountain Bike Enduro – 11 and 12 June 2016

1. That, subject to conditions, the on-road components for the Tathra Mountain Bike Enduro on Saturday 11 June and Sunday 12 June 2016 be approved.

2. That the event be deemed a Class 2 special event and it be conducted under an approved Traffic Control Plan in accordance with the Roads and Maritime Services (RMS) Traffic Control Manual.

3. That the Traffic Control Plan is to reflect the following:

a) All stages held on Tathra Bermagui Road to be transport stages only, including race finish.

b) Use of cycle track is not available for racing purposes, as it is set aside for casual users.

4. That persons involved in the preparation and implementation of the Traffic Control Plan must hold the appropriate RMS accreditation.

5. That organisers fully implement an approved Special Event Transport Management Plan.

6. That organisers have approved public liability insurance of at least $20 million indemnifying Council, Police and Roads and Maritime Services by name for the event.

7. That organisers have written approval prior to conducting the event from the following:

a) Roads and Maritime Services, for the use of classified roads

b) NSW Police, under Section 40 of the Roads (Transport Safety & Traffic Management) Act

c) National Parks and Wildlife Service

d) Forests NSW

8. That the event organisers advertise the change to traffic conditions for the event

9. That local emergency services and transport operators be notified prior to the event

2016 Bemboka Triathlon – 19 March 2016

1. That, subject to conditions, Hoskins Street and Sam Corner Road, Bemboka be temporarily closed between the intersections of Kameruka Street to the junction of Lookout Lane and temporary closure of Kameruka Street from intersection of Hoskins Street to 1st driveway east of the pool from 8:00am to 3:00pm on Saturday 19 March 2016 for the 2016 Bemboka Triathlon.

2. That the proposed traffic arrangements involving the temporary closure of Hoskins Street, Sam Corner Road and Kameruka Street, Friends of Bemboka Pool 2016 Bemboka Triathlon on Saturday 19 March 2016, be deemed a Class 2 special event and it be conducted under an approved Traffic Control Plan, in accordance with the Roads and Maritime Services (RMS) Traffic Control Manual.

3. That persons involved in the preparation and implementation of the Traffic Control Plan must hold the appropriate RMS accreditation.

4. That organisers fully implement an approved Special Event Transport Management Plan.

5. That organisers have approved public liability insurance of at least $20 million indemnifying Council, Police and Roads and Maritime Services by name for the event.

6. That organisers have written Police approval prior to conducting the event.

7. That the event achieves all conditions of Council’s issued Land Use approval.

EAT Merimbula – 13 March 2016

1. That, subject to conditions, Fishpen Road, Merimbula from Burton Avenue to Calendo Court be temporarily closed from 6:00am to 3:00pm on Sunday 13 March 2016 for EAT Merimbula.

2. That the proposed traffic arrangements involving the temporary closure of Fishpen Road, Merimbula for EAT Merimbula on Sunday 13 March 2016, be deemed a Class 2 special event and it be conducted under an approved Traffic Control Plan, in accordance with the Roads and Maritime Services (RMS) Traffic Control Manual.

3. That persons involved in the preparation and implementation of the Traffic Control Plan must hold the appropriate RMS accreditation.

4. That organisers fully implement an approved Special Event Transport Management Plan.

5. That organisers have approved public liability insurance of at least $20 million indemnifying Council, Police and Roads and Maritime Services by name for the event.

6. That organisers have written Police approval prior to conducting the event.

7. That the event achieves all conditions of Council’s issued Land Use approval.

8. That notification of road closure be issued to affected residents.

Line Marking at West Street & Reservoir Street, Eden

1. Council approve the installation of double white lines at the intersection of West Street and Reservoir Streets Eden for the minimum mandatory lengths.

Council 24 February 2016

Item 12.1

12.1. RFT 91/15 Provision of a Microwave Communication Network Solution

This report details the evaluation of RFQ 91/15 for the provision of a Microwave Communication Network solution.

Group Manager Strategy and Business Services

Background

Bega Valley Shire Council currently uses microwave technology to maintain data and voice communications between nine of its office locations. Whilst the solution has proven to be reliable and cost effective, the technology is now some 13 years old and has reached its end of supportable life. Communications outages are becoming more common as microwave equipment faults have increased. These failures are directly impacting operational performance and service delivery.

Quotations were invited from suitably qualified and experienced contractors for the provision and maintenance of a replacement microwave communications solution. Sites specified for integration in the system are listed below and are shown in Figure 1:

· Bega

o Administrative Building, Commemorative Civic Centre, Library, Art Gallery

o Depot Stores, Workshop, Amenities, Water and Sewer Office

o Minyama Parade Building

o Bandara Child Care Centre (costed option)

· Bermagui

o Library

o Depot Building

· Eden

o Library

o Depot Building

o Pre-School (costed option)

o Child Care Centre (costed option)

· Merimbula

o Bega Valley Regional Learning Centre

o Depot

· Tura Beach

o Library

The RFQ specification required the extension of the current microwave system to include coverage of the Tura Beach Library. Council’s three child care centres were also included as costed options, providing Council with the opportunity to determine if the inclusion of these sites provides value for money.

Tender

The Request for Quotation (RFQ) was advertised through the Local Government Vendor Panel from 27 Oct 15 to 5.00pm 25 Nov 15. At the time the RFQ closed, four proposals were received.

An RFQ Evaluation Plan consistent with the NSW Local Government Tendering Regulations and the Conditions of Tendering was prepared and endorsed by the evaluation panel prior to the close of tenders.

Evaluation criteria and weightings were as follows:

CRITERIA	DESCRIPTION	WEIGHTING
Project value	The overall project cost	50%
	The makeup of the cost structure
	The integrity and stability of cost
	Commercial terms and conditions
Project experience	Demonstrated ability to complete the work	30%
	Experience in completing similar projects
	Quality system and QA Experience
	Financial ability to undertake project of this size
Project functionality	Satisfaction and recognition of the project objectives	15%
	Conceptual and operational plans
	Proposed construction arrangements and completion program
Local Community Benefit	Recognition of local outcomes, demonstrating support for local business and community enterprise	5%

The evaluation was carried out in accordance with the RFQ Evaluation Plan with a preferred proposal identified in the process. Evaluation details are contained in the attached Confidential Memorandum to Councillors.

Issues

Strategic

Globally it has been recognised that Information and Communication Technology (ICT), as an ‘enabling service’, is fundamentally changing. Cloud based services and ‘anywhere’, ‘any time’, ‘any device’ mobile computing services are introducing new ways for organisations to conduct business. Improved operational performance through ICT service delivery is dependent on having a strong and dependable communication framework such as the solution being offered by this acquisition.

In accordance with current strategic planning, renewal of Council’s microwave network is a ‘foundation piece’ essential for the revitalisation of Council’s broader ICT capabilities. It will allow Council to continue to provide operationally effective services and will enhance Council’s standing in terms of the delivery of high speed community ICT access (eg: Tura Beach library ‘hub’). Importantly, it will also mitigate against the rise of business continuity failure via reliable, monitored servicing arrangements.

Legal

The RFQ process was required to comply with the Local Government (General) Regulation 2005 (the Regulation).

Asset

Council’s daily operations are dependent on effective voice and data communications at each of its offices. Over recent years Council has experienced a steady increase in the frequency of communications outages as a result of failures in its ageing microwave technology. Subsequent loss of telephony and computing systems services directly impacts Council’s ability to conduct business. It is therefore essential that Council’s communication infrastructure is maintained with appropriate capacity and reliability. Analysis has shown microwave technology offers best value for money when it comes to the delivery of these services across Council’s primary and geographically disparate sites. Investment in the renewal of the current microwave solution should reasonably provide Council with high performing communications for the next decade.

The proposed solutions provide significant improvements in risk mitigation through:

· The broader adoption of Australian Communication and Media Authority (ACMA) licenced microwave links that will reduce the risk of frequency interference and allow greater transmission capacity,

· Contractor managed network monitoring services that will provide 24/7 system health checks and alerts,

· battery based backup power supplies at all relay sites to ensure continued operations during mains power outages,

· the engagement of a Bega Valley business to provide first line system support and fault rectification,

· the holding of dedicated spare parts within the Bega Valley,

· the annual inspection of each microwave site by the Contractor to identify and remediate any potential issues (eg: overgrown vegetation), and

· Contractor supplied fault assessment reports within 48 hours of an incident that include details of corrective and preventive action taken.

Integration of the Tura Beach Library will require the establishment of a microwave relay site. Potential sites have been examined final site selection will be made in conjunction with the successful supplier.

Consultation

The RFQ evaluation panel have consulted with the relevant referees supplied by the preferred supplier. All comments received have been documented and can be supplied upon request.

Financial and Resources

Council’s ICT Reserve is sufficient to cover the proposed capital expenditure for the microwave renewal.

Annual maintenance and support costs are forecast to reduce through improved equipment reliability and the introduction of remote network monitoring services that will expedite fault diagnosis and resolution.

Staff resources will be required to manage project implementation.

Conclusion

This report recommends award of the contract for services to a preferred supplier in accordance with the details presented to Councillors in the Confidential Memorandum attached to this report.

Attachments

1. Confidential Memo To Councillors - Tender RFT 91.15 (Councillor Only) (Confidential)

Recommendation

1. That Council accept the recommendations outlined in the Confidential attachment.

2. That Council accept the quotation from <insert> in relation to RFT 91/15 Provision of a Microwave Communication Network Solution in the amount of <insert> (including GST), subject to variations, provisional sums and prime cost items.

3. That authority is delegated to the General Manager to execute the necessary contract documentation.

4. That all companies submitting proposals be advised of Council’s decision.

Council 24 February 2016

Item 12.3

12.3. National Stronger Region Fund - Merimbula Airport

This report outlines the key items which will be included in the Merimbula Regional Airport application.

General Manager

Background

At its meeting on 3 February 2016 Council Resolved:

That Council resolve to formally submit an application for Round Three of the National Stronger Regions Fund for the Merimbula Regional Airport with final figures and potential funding sources reported to Council at its meeting on 24 February 2016.

Runway extensions to be funded by NSW State Government, planned route deregulation and expansions, and air freight growth will see capacity at the airport grow.

The NSW State Government has announced that deregulation of the Sydney Merimbula route is currently under consideration providing opportunity for the introduction of alternate carriers. Upgrades to the airport include emergency services hydrants and runway extension funded by the NSW Government. This application will cover the extension of the terminal to include baggage handling, passenger security screening and tourism interpretation centre.

The existing passenger terminal is adequate for the current level of activity with the operation of a single Saab 340 capped by the route regulation. Additional capacity is required for two or more Saab 340 aircraft (or similar) operating simultaneously or a single Saab 340 at 100 per cent load factor. The Air Transport Security Regulations (ATSRs) require all passengers and baggage travelling on aircraft greater than 20,000kg Maximum Take-Off Weight (MTOW) operating RPT services to be security screened. While the Saab 340 does not currently fall into this category, it does apply to the Q400 and ATR 72. It is anticipated however, that the security screening requirements will become more stringent and may well in time include aircraft that are currently exempt.

The runway extensions currently being considered for funding by the NSW Government will allow larger aircraft such as the Bombardier Q400 operated by QantasLink and the ATR72 operated by Virgin Australia to take off and land in a wide range of weather conditions with no restrictions on their take-off weights.

A gateway tourism centre, air freight processing area and formalising of the car park on the eastern side of Arthur Kaine Drive will ensure maximum outcomes for the airport.

The major items to be included in the funding application are:

• Terminal upgrade including baggage handling and security screening;

• Tourism interpretation in existing terminal space;

• Air freight infrastructure; and

• Car park formalisation.

Issues

Legal

Any funding application will be considered by the Federal Government and a funding deed prepared for successful projects which binds both the Federal Government and the Council to specific roles in achieving the project on time and on budget.

Operational Plan

The Airport is a major Council transport asset. It has an adopted Master Plan and is clearly identified as a key project for the region and the Shire

Asset

The Merimbula Regional Airport is a major transport, economic and community asset.

Social / Cultural

Merimbula Regional Airport plays a key role in supporting health, emergency service and other crucial community travel.

Financial and Resources

There is a requirement in this program to contribute partner funding to match the NSRF grant in cash on at least a dollar for dollar basis. The application must provide evidence confirming all partner funding at the time of application.

The NSW Government through the Restart NSW Regional Tourism Airport program have committed $990,000 towards water upgrades and are currently considering the runway extension works as stage two of the program. An indication on this funding is expected in March 2016.

The final costings for the items of the project to be presented in the NSRF application are:

· Terminal works including security screening, baggage handling, air freight , tourism interpretation centre $2,000,000

· Car park and pedestrian infrastructure $400,000

Funding source

Amount

NSRF application

Council funding through Long Term Financial Plan

1.2m

Conclusion

Funding closes for Round Three of this key regional community funding program on 15 March 2016. Feedback has been received from the Federal Government in relation to the last funding application and work is being finalised on this round taking into consideration feedback received. The works planned as the focus of this application finalise the key implementation of the Master Plan for the Merimbula Regional Airport and allow it to play a key role as an economic driver for the region.

Attachments

Nil

Recommendation

1. That Council support the submission of a National Stronger Regions Fund application for round three of the program for the Merimbula Regional Airport stages as outlined in the report with matching funding identified in the Long Term Financial Plan.

Council 24 February 2016

Item 13.2

13.2. Quarterly Budget Review Statement (QBRS) at December 2015

Budget review statements are prepared and presented to Council quarterly in accordance with Section 203 of the Local Government (General) Regulations 2005.

Group Manager Strategy and Business Services

Background

Under the Integrated Planning and Reporting (IPR) Guidelines, a Quarterly Budget Review Statement (QBRS) must be presented to Council for each financial quarter.

The QBRS, due to its size has been distributed to Councillors electronically and if requested, in hardcopy. The link below directs the user to the electronic version of the document.

Bega Valley Shire Council December 2015 QBRS

The QBRS is presented in a summary format which reflects the Long Term Financial Plan. Each function of Council is presented individually as a summary page for each theme. The report also shows a range of management information for each function, such as:

· Income Progress graphs: These graphs illustrate how each function is progressing with their revenue estimates. The overall graph illustrates the cumulative progress of the function, while the monthly graph shows progress month by month.

· Reserves table: This table outlines cash reserves linked to that particular function and their movements throughout the financial year.

· Expense Progress Graphs: These graphs illustrate how each function is progressing with their expenditure estimates. The overall graph illustrates the cumulative progress of the function, while the monthly graph shows progress month by month.

· Revotes Table: This table tracks the progress of the revotes from the 2015 financial year.

It is the intent of this report to provide information to the users of the QBRS report in order to illustrate the financial performance of each particular function of Council.

Council staff retain the ability to enquire, transact, and report on the detailed General Ledger, which includes budgets. If there are specific questions relating to detailed transactional information, staff can provide answers to those questions.

Issues

Legal

Clause 203 of the Local Government (General) Regulations 2005 states:

Budget review statements and revision of estimates

1. Not later than two months after the end of each quarter (except the June quarter), the responsible accounting officer of a council must prepare and submit to the council a budget review statement that shows, by reference to the estimate of income and expenditure set out in the statement of the council’s revenue policy included in the operational plan for the relevant year, a revised estimate of the income and expenditure for that year.

2. A budget review statement must include or be accompanied by:

a. A report as to whether or not the responsible accounting officer believes that the statement indicates that the financial position of the council is satisfactory, having regard to the original estimate of income and expenditure, and

b. If that position is unsatisfactory, recommendations for remedial action.

c. A budget review statement must also include any information required by the Code to be included in such a statement.

Financial

The QBRS reports the detailed variances for the December 2015 quarter.

There are no major or significant variances to report to Council. A more detailed analysis is located within the QBRS attachment.

However, in summary there were two variations that were of significant value.

1. The expenditure of funds for the construction of the Water Treatment Plant at Bemboka has been pushed back to the 2017 financial year, resulting in approximately $1.7m being placed back into the Water Reserves.

2. The expenditure of funds for the Sewer Main renewal program has been pushed back to the 2017 financial year, resulting in approximately $2.3m being placed back into the Sewer Reserves.

All other variances are of a minor nature reflecting the receipt of new grants and associated expenditure or the reallocation of expenditure amongst maintenance items.

As at the end of December 2015, Council held $51.5M in cash and investments – the bulk of which remain restricted for use with planned infrastructure or projects preconditioned by loans, grants or development contributions.

As per Council’s Policy, the QBRS reflects the budget in a balanced position and maintains working capital at adopted levels. All net movements are factored through the movement to and from reserves, including anticipated transfers to asset, Employee Leave Entitlements (ELE) and property reserves at year end.

Conclusion

Council’s December 2015 QBRS has been presented to Council. Council financial performance is healthy and within the operating budget set by Council in June 2015.

Attachments

Nil

Recommendation

1. That Council note and endorse the December 2015 Quarterly Budget Review Statement (QBRS).

2. That Council adopt the variances, in this instance being revotes from the 2015 financial year, to its operating budget as outlined in the QBRS.

3. That Council place the QBRS for December 2015 on its website for public information.

Council 24 February 2016

Item 13.3

13.3. Certificate of Investments made under Section 625 of the Local Government Act, 1993

This report details Council’s investments during the month of January 2016.

Group Manager Strategy and Business Services

Background

Under the legislation and regulations mentioned below, the Responsible Accounting Officer must present to Council on a monthly basis the status of the investments held by Council. The Responsible Accounting Officer must detail the investments held, and their compliance with both internal policy and external regulation under the Ministerial Order of Investments.

In accordance with the recommendations made by the Office of Local Government (OLG) Investment Policy Guidelines published in May 2010, the Strategy and Business Services section has made the monthly Investments Report an attachment to the Business Paper. This allows a stand-alone report to be published on Council’s website for the public to view without having to peruse the Council’s Agenda for the relevant meeting.

Issues

Legal

Section 625 of the Local Government Act 1993 (the Act) determines money may only be invested in a type of investment authorised by order of the Minister for Local Government and published in the Local Government Gazette. The most recent Ministerial Order of Investment was published February 17, 2011.

Clause 212 of the Local Government (General) Regulation 2005 determines the Responsible Accounting Officer must provide Council with a written report setting out details of all money Council has invested under section 625 of the Act.

The report must also include a Certificate as to whether or not the investments have been made in accordance with the Act, the Regulations and the Council’s Investment Policy.

Policy

Council has an Investment Policy published under policy number 5.07. This Policy is reviewed every 4 years by Council and annually by Council staff.

Council’s current Policy allows for investment of funds in cash term deposits only with rated Authorised Deposit-Taking Institutions (ADI’s). Council does not hold any investments in sub-prime or managed fund products. At this time, Council holds no long term deposits nor any deposits introduced through an agent.

Financial

The attached report indicates a current investment portfolio of $45,900,000. These funds can be broken into the following Funds:

Table 1: Investments by Fund $’000
Fund	November 2015	December 2015	January 2016
General Fund	$7,808	$16,708	$14,708
Water Fund	$14,842	$14,842	$14,842
Sewer Fund	$16,350	$16,350	$16,350

In addition, there is $2,901,000 in uninvested funds in Council’s operating account.

· Each fund’s allocation can only be utilised on its specific operations. For example, Water Fund cannot use its financial resources on General Fund projects, etc.

· Externally Restricted is defined by purposes that are “restricted” by external legislation or regulations, such as unspent grants or loans tied to a specific project, or development contributions held for expenditure in accord with an adopted s94/s64 contributions plan.

· Internally Restricted is defined by “restrictions” placed upon the use of these funds by Council internally, such as asset replacement, weeds, property, employee entitlements and the like.

· Unrestricted funds are available for day to day operational uses, or emergencies. Those funds are reviewed daily for short term investment, depending on revenue cycles such as rates instalments.

Table 2: Restricted Cash and Investment by Fund $’000
Fund	External Restrictions	Internal Restrictions	Unrestricted	Total
General Fund	$10,902	$8,560	-$1,853	$17,609
Water Fund	$4,224	$10,618		$14,842
Sewer Fund	$2,581	$13,769		$16,350

The restrictions reported in Table 2 relate to 30 June 2015.

Council formally calculates its Restrictions as at 30 June each year. These Restrictions are not reset until the following year Financial Audit. Any movement of funds during the year, is therefore, shown as movement in unrestricted cash.

There have been expenditures between July and year to date that will result in reduced restrictions (for example transfers from reserves to fund capital works), but is not reflected in the above table.

Attachments

1. Certificate of Investment - January 2016

Recommendation

1. That Council receive and note the attached report indicating Council’s Investment position.

2. That Council note the Certificate of the Responsible Accounting Officer.

Council 24 February 2016

Item 15.1

15.1. Report from the Launch of the Capital Express by Singapore Airlines and Canberra Airport Freight Forum

Report from Cr Britten on his attendance at the Canberra Airport Freight Forum and launch of Capital Express

Cr Britten, Mayor

On behalf of Council I attended the Launch of the Canberra Express by Singapore Airlines on Thursday evening of the 11 February 2016. The following day, Friday 12 February 2016, along with Council’s Group Manager Strategy and Business Services and Economic Development Manager I attended the day seminar on Freight Transport at Canberra Airport.

The following is a summary of the information received from the events:-

Singapore Airlines commences International Flights from Canberra in September 2016 with 4 flights per week to both Singapore and Wellington in New Zealand. This equals approximately 2000 seats per week using a Boeing 777 – 200 and as Canberra has no curfew International Flights can go to Singapore at 11.30 pm, allowing for arrival at destinations suitable to Business Hours. The passenger configuration has been altered to accommodate more Business Class seats than is normal to cater for Business Customers including Government Representatives. Prices are in Economy – Singapore return $650 and Wellington return $469. Singapore Airlines have commenced promotion of Canberra as a destination in both the Philippines and Indonesia and no doubt will also receive use from China.

Canberra Airport - To understand recent developments it is necessary to understand the logistical location of Canberra Airport within Australia. Whilst there are 2000 landing strips in Australia, only 30 are jet capable and only 15 are large jet airports. Ten of these including Sydney and Melbourne suffer from constraints including curfew, military operations, bilateral air services, and air space agreements. There are only 5 large airports with no constraints:-Alice Springs in the NT; Cairns, Rockhampton and Towamba in Queensland. The 5^th Airport is Canberra Airport and its geographical location services parts of NSW and Victoria and the ACT all in the South East of Australia with a population of 12.6M and export capability for freight representing 60% of Australia’s Export Capability. For Example, China takes a third of Australia’s Export Capability which is valued at $8.8B to Regional NSW. Canberra Airport International Terminal is presently under construction at a cost of $25M ready for commencement of operations in September 2016

Each International Plane that leaves Canberra Airport for overseas is able to carry 20 tons of freight and in addition Canberra Airport will have 6 dedicated bays for purely airfreight aircraft without passengers and Canberra Airport is A380 ready for future use.

The types of freight that leave Australia and for which Canberra Airport can accommodate includes cherries, blood oranges, Riverina chilled meat, wheat, rice, corn, cotton, nuts and walnuts, animal genetics, flour, aquaculture including oysters, milk, asparagus, pharmaceuticals. Whilst these products leave Australia through Sydney and Melbourne their production proximity to Canberra and the lack of a curfew makes Canberra Airport an obvious choice, especially as Sydney Airport has little room left to expand and will forfeit freight space for passenger services until such time as Badgerys Creek is developed which is some time away. Canberra Airport, due to its proximity, will be able to assist delivery from the grower to the table in Asian Counties within 36 hours

Presentations were made by various Agricultural Producers and also a presentation was made by Cathay Pacific, which is a major player in the Australian Market. Cathay Pacific is Co-Owned with China Air and also had subsidiaries in Asia such as Dragon Air and a share of Air China Freight.

Cathay Pacific in Australia runs 23 freight planes, 123 passenger planes and has 70 more on order.

A comparison of Cathay Pacific services per annum are as follows:-

*Country*	*Passenger*	*Freight*
China	400	18
Africa India & Middle East	98	21
Europe	85	7

At present 100 million Chinese travel overseas each year which in due course will double, and at present Australia receives 1 million of these passengers each year which equates to an economic return to Australia of $6B per annum. Indonesia 15 years ago had approximately 4 Million people in their middle class structure and today they have 40 Million people in middle class.

Due to the close working relationship between Virgin as a domestic carrier and Singapore Airlines Internationally, it will be interesting to see how that relationship develops for the South East of NSW.

A number of networks were established that will be followed up on including:

· Singapore Tourism

· Bega Cheese

· Australia’s Oyster Coast

· Invest Canberra

· Canberra Airport

· ACT Government

Each of the connections above were pre organised ahead of the symposium and meetings/discussions took place that will lead to future and ongoing communication to identify opportunities and benefits.

Attachments

Nil

Criteria	Weighting
Development Time Frame	25%
Development Concept	25%
Economic Benefits	20%
Social Benefits	5%
Cash Price	25%
Total	100%

Funding source		Amount
International Women’s Day Scholarship	$	500.00

Council	24 February 2016
*Item 10.1 - Attachment 1*	Hotel Australasia Group - Peter Whiter - Commitments

Council	24 February 2016
*Item 13.1 - Attachment 1*	Letter of Offer, Instalment Schedule and Loan Agreement - TCorp

Council	24 February 2016
*Item 13.3 - Attachment 1*	Certificate of Investment - January 2016

Ordinary

Meeting Notice and Agenda

To:

Copy:

Live Streaming of Council Meetings

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

Statement of Commencement of Live Streaming

Acknowledgement of Traditional Owners of Bega Valley Shire

1 Apologies and requests for leave of absence

2 Confirmation Of Minutes

3 Declarations

4 Deputations (by prior arrangement)

5 Petitions

6 Mayoral Minutes

7 Adjournment to Standing Committees

Recommendation

8 Staff Reports – Planning and Environment (Sustainability)

9 Staff Reports – Community, Culture and Leisure (Liveability)

10 Staff Reports –Economic Development and Business Growth (Enterprising)

11 Staff Reports – Infrastructure Waste and Water (Accessibility)

12 Staff Reports – Governance and Strategy (Leading Organisation)

13 Staff Reports – Finance (Leading Organisation)

14 Adoption of Reports from Standing Committees

Recommendation

15 Delegates Reports

16 Rescission/alteration Motions

17 Notices of Motion

18 Urgent Business

19 Questions On Notice

20 Questions for the Next Meeting

21 Items of Interest Relating to Council Business

22 Confidential Business

Statement of Cessation of Live Streaming for the period of the Closed Session.

Statement of Re-Commencement of Live Streaming

23 Adoption of reports from Closed Session

24 Resolutions to declassify reports considered in closed session

Council

24 February 2016

Staff Reports –Planning And Environment (Sustainability)

24 February 2016

Staff Reports – Community, Culture and Leisure (Liveability)

24 February 2016

9.1. International Women's Day 2016 Young Women's Scholarship

Background

Strategic

Social / Cultural

Financial and Resources

Conclusion

Attachments

Recommendation

Council

24 February 2016

Staff Reports – Economic Develoment and Business Growth (Enterprising)

24 February 2016

10.1. Hotel Australasia Eden - Option to Purchase

Background

Issues

Legal

Operational Plan

Asset

Attachments

Recommendation

Council

24 February 2016

Staff Reports – Infrastructure Waste And Water(Accessibility)

24 February 2016

Council

24 February 2016

Staff Reports – Governance And Strategy (Leading Organisation)

24 February 2016

Staff Reports – Finance (Leading Organisation)