Agenda of Council - 17 May 2017

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 1993 and Office 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?

Local Government Act 1993 and Model Code of Conduct

For more detailed definitions refer to Sections 442, 448 and 459 or the Local Government Act 1993 and Model Code of Conduct, Part 4 – conflictions of interest.

Agency advice

Whilst seeking advice is generally useful, the ultimate decision rests with the person concerned.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

Disclosure of pecuniary interests / non-pecuniary interests

Under the provisions of Section 451(1) of the Local Government Act 1993 (pecuniary interests) and Part 4 of the Model Code of Conduct prescribed by the Local Government (Discipline) Regulation (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.

The following form should be completed and handed to the General Manager as soon as practible once the interest is identified. Declarations are made at Item 3 of the Agenda: Declarations - Pecuniary, Non-Pecuniary and Political Donation Disclosures, and prior to each Item being discussed:

Council meeting held on __________(day) / ___________(month) /____________(year)

Item no & subject
Pecuniary Interest	In my opinion, my interest is pecuniary and I am therefore required to take the action specified in section 451(2) of the Local Government Act 1993 and or any other action required by the Chief Executive Officer.
Significant Non-pecuniary conflict of interest	– In my opinion, my interest is non-pecuniary but significant. I am unable to remove the source of conflict. I am therefore required to treat the interest as if it were pecuniary and take the action specified in section 451(2) of the Local Government Act 1993.
Non-pecuniary conflict of interest	In my opinion, my interest is non-pecuniary and less than significant. I therefore make this declaration as I am required to do pursuant to clause 4.17 of Council’s Code of Conduct. However, I intend to continue to be involved with the matter.
Nature of interest	Be specific and include information such as : · The names of any person or organization with which you have a relationship · The nature of your relationship with the person or organization · The reason(s) why you consider the situation may (or may be perceived to) give rise to a conflict between your personal interests and your public duty as a Councillor.
If Pecuniary	Leave chamber
If Non-pecuniary (tick one)	Disclose & vote Disclose & not vote Leave chamber
Reason for action proposed	Clause 4.17 of Council’s Code of Conduct provides that if you determine that a non-pecuniary conflict of interest is less than significant and does not require further action, you must provide an explanation of why you consider that conflict does not require further action in the circumstances
Print Name	I disclose the above interest and acknowledge that I will take appropriate action as I have indicated above.
Signed

NB: Please complete a separate form for each Item on the Council Agenda on which you are declaring an interest.

Council 17 May 2017

Item 12.3

12.3. RFT 29/17 Merimbula Central Business District Bypass Monaro Street and Market Street Intersection Reconstruction

This report details the outcome of the evaluation of Tender 29/17 for the Merimbula Central Business District (CBD) Bypass, Market Street and Monaro Street Intersection reconstruction, and recommends award to the preferred tenderer.

Director Transport and Utilities

Background

The Merimbula CBD Bypass Project aims to reduce traffic congestion within the Merimbula CBD and improve through-traffic movement. Detailed traffic studies/modelling in 2009 were undertaken. Council adopted in March 2010 the recommended option to realign and upgrade Park Street to provide a traffic route linking the Market Street and Monaro Street intersection with the Merimbula Drive, Reid Street and Sapphire Coast Drive intersection.

Works have been undertaken in stages, during off peak tourist seasons, as follows:

· Mid 2015: Merimbula Drive Roundabout

· Late 2015: Pipe and fill drainage line and northern carpark construction

· Mid 2016: Palmer Lane / Park Street carpark reconstruction

· Late 2016: Park Street realignment (part)

· Early 2017: Park Street realignment (final)

The Market Street and Monaro Street intersection scope of this Tender, is the final stage of the Merimbula CBD Bypass Project. Works will commence on 19 June 2017, after the June Queen’s Birthday public holiday-weekend and Merimbula Jazz Festival, and will take an estimated 18 weeks (weather dependent) to complete.

The tender was publically advertised on 28 March 2017 in the Sydney Morning Herald, local newspapers, the Council website and Tenderlink (e-tendering). The tender closed on 26 April 2017.

Tender documents were downloaded by 14 companies, five companies attended the tender briefing and two tender submissions were received from:

· Guideline South Coast Pty Ltd

· John Michelin and Son Pty Ltd

The tender submissions were assessed against the following evaluation criteria:

Criteria (Schedule)	Description	Weighting
Non-Price Criteria
B3. Key Contract Staff	Key Personnel qualifications, experience, & commitment to works	10%
B4. Plant & Equipment	Resources to undertake full scope of works	5%
B5a. Sub-Contractors & Major Suppliers	Coverage of full scope of works. Qualifications, experience, quality.	5%
B5b. Local Outcomes	Local personnel, subcontractors, suppliers, other local benefits / outcomes.	5%
B6. Methodology	Sequencing / staging, traffic management plan, approach to issues / risks, demonstrated have thought through the “how” in detail.	10%
B7. Programme	Detail, duration, credibility, consistency with methodology.	10%
B8. WH&S	WH&S Accreditation / documentation	Compliant / Non - Compliant / Marginal
B9. Quality	Quality Accreditation / documentation	Compliant / Non - Compliant / Marginal
B10. Environmental	Environmental Accreditation / documentation	Compliant / Non - Compliant / Marginal
B11. Past Projects & References	Company details, recent & relevant past projects, references	10%
B12. Financials	Required details provided	Compliant / Non - Compliant / Marginal
B13. Current Workload	Sufficient capacity to undertake works	5%
B14. Additional Info	Relevant info only. Padding and irrelevant information not considered.	May influence above criteria scoring.
	Non-Price Criteria sub-total	60%
Price Criteria
A. Lump Sum Price (amount)	Lump sum price offered	30%
B1. Lump Sum Price (Breakdown)	Price breakdown, qualifications, extras, omissions, etc	5%
B2. Rates for Variations	Variation rates, qualifications, extras, omissions, etc	5%
	Price Criteria sub-total	40%

Issues

Legal /Policy

The recommended Merimbula CBD Bypass option was adopted by Council in March 2010.

The tender process complied with the Local Government Act 1993.

Strategic

The Merimbula CBD Bypass is reflected in the Bega Valley Shire Traffic Strategy, the Merimbula Development Control Plan (DCP) and the Merimbula CBD Landscape Masterplan.

Operational / Asset Management Plan

The works are part of the Merimbula CBD Bypass Headline Project.

The assets are a main sealed road (Market Street) and local collector road (Monaro Street and Palmer Lane) under Council’s adopted roads hierarchy.

The power assets belong to Essential Energy and the communications assets belong to Telstra. Relocation or upgrade works on these assets have been certified by the respective asset owners, and will be undertaken by accredited sub-contractors.

Environmental / Sustainability

A Review of Environmental Factors for the overall Bypass Project was undertaken by NGH Environmental, dated September 2015.

The Contractor will be required to undertake the works in accordance with a project specific Environmental Management Plan.

Economic

The reduction of congestion within the Merimbula CBD will increase the accessibility and appeal of the Merimbula CBD to locals, the wider community, visitors and tourists, which will have a positive impact on local businesses, and the wider economy of the Shire.

Community Engagement and/or Communications

The Merimbula CBD Bypass Project has been communicated to the community over several years through:

· Council workshops, meetings and website;

· Public exhibition of the Bega Valley Shire Traffic Strategy, the Merimbula Development Control Plan (DCP) and the Merimbula CBD Landscape Masterplan;

· Presentations to Merimbula Chamber of Commerce and Merimbula Rotary Club;

· Letter drops to adjacent property owners and affected businesses; and

· Media releases to local media.

Ongoing communication with the adjacent property owners, affected businesses and the wider community is of high importance to promote community support for the project and minimise disruption and complaints during construction. This will be undertaken through the following:

· Letter drops to adjacent property owners and affected businesses;

· Communication with the Merimbula Chamber of Commerce;

· Media releases and public notices in local newspapers; and

· Council’s website, social media and Merimbula Place Based Officer.

Financial and resource considerations

The Project Engineer for the Merimbula CBD Bypass Project will manage the contractor undertaking these works.

The funding for this project (excluding GST) in the financial year 2017/2018 Budget is as follows:

Funding source		Amount
Merimbula CBD Bypass Headline Project	$	2,600,000

Risk

The following risks have been identified specific to this project:

· Disruption to local businesses, residents, traffic and pedestrians as a result of the intersection works. This will be mitigated through:

o staging of the works,

o comprehensive traffic and pedestrian management arrangements,

o minimisation of the duration of the works, and

o effective communication initiatives prior to and during the works.

· There are a significant number of underground services within the footprint of the works, some requiring upgrade or relocation. These services have been identified, located and detailed on the design drawings. The contractor is also required to engage a services locating specialist to physically locate all services prior to excavation works.

· Environmental risks associated with the works include noise, dust, and sediment laden stormwater runoff into Merimbula Lake, potentially impacting on the oyster leases. The Contractor will be required to implement environmental controls and undertake the works in accordance with a project specific Environmental Management Plan.

· Inclement weather is a risk that can impact on the works (pavement moisture content), the duration of the works and environmental risk (sediment laden stormwater runoff into Merimbula Lake)

Conclusion

The Merimbula CBD Bypass Project will reduce traffic congestion within the Merimbula CBD and improve through-traffic movement. The Market Street and Monaro Street intersection, the scope of this Tender, is the final stage of the Merimbula CBD Bypass Project.

Attachments

1. Confidential memorandum to Councillors regarding RFT 29/17 Merimbula Central Business District Bypass Monaro Street and Market Street Intersection Reconstruction (Councillor Only) (Confidential)

Recommendation

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

2. That Council accept the tender from <insert> in relation to the contract for the works described in Tender RFT 29/17 Merimbula CBD Bypass Market Street and Monaro Street intersection reconstruction, in the amount of $<insert> (including GST), subject to variations and provisional sums.

3. That authority is delegated to the General Manager, or the Director of Transport and Utilities in the absence of the General Manager, to enter into negotiation with the preferred tenderer to address identified issues, and subsequently to execute all necessary documentation.

4. That the other tenderer be advised of Council’s decision.

Council 17 May 2017

Item 13.1

13.1. Public exhibition of draft Community Strategic Plan, Resourcing Strategy, Delivery Program and Operational Plan, and Disability Inclusion Action Plan

Council is required to exhibit its draft Integrated Planning and Reporting plans including the draft Community Strategic Plan, Resourcing Strategy, Delivery Program and Operational Plan and Budget, and Disability Inclusion Action Plan for a period of 28 days.

General Manager

Background

All Councils in NSW are required to develop long term, medium term and short term plans under the Local Government Act 1993which has transitioned councils to the Integrated Planning and Reporting (IPR) Framework .

In accordance with the IPR Framework, Council has prepared a range of integrated draft Plans to define and help achieve our community’s vision for the future. This includes the following draft documents: Community Strategic Plan 2040 (ten year plus outlook); Resourcing Strategy (including the Financial Policy, Financial Strategy and Long Term Financial Plan, the Asset Management Policy, Asset Management Strategy and Council Asset Plans, and four year Workforce Plan); Delivery Program (four year plan); and Operational Plan (one year plan).

In summary, the draft documents and their components are as follows:

· Community Plan - Draft Bega Valley Shire Community Strategic Plan 2040

· Council’s Draft Bega Valley Shire Resourcing Strategy 2017 – 2027

- Financial Policy and Strategy 2017 – 2027

- 10 Year Long term Financial Plan 2017 – 2027

- Workforce Management Plan 2017 – 2021

- Asset Management Policy and Strategy 2017 – 2027

- Technology Strategy 2017 – 2021

- Asset Management Plan 2017 – 2027 and Asset Plans for each Asset Class

· Council’s Draft Bega Valley Shire Delivery Program 2017 – 2021 and Operational Plan 2017 – 2018

- Budget 2017 – 2018

- Revenue Policy 2017 – 2018

- Fees and Charges 2017 – 2018

- Financial Estimates 2017 – 2021

The draft Plans aim to set Council’s long-term strategic approach to delivery of its services and facilities and ensure these represent the needs of the community. The drafts documents have been developed over the past 12 months and are now proposed to be publicly exhibited with the feedback considered by Council before they are adopted.

Disability Inclusion Action Plan (DIAP)

The NSW Disability Inclusion Act 2014 includes a series of principles which relate to people with disability and recognise the needs of particular groups. Section.12(3) of the NSW Disability Inclusion Act 2014 requires councils to prepare a Disability Inclusion Action plan which must include a series of principles, strategies and actions that will guide Council operations over the next four years. These align with the principles of the Disability Inclusion Act 2014, as well as the NSW Government's Disability Inclusion Plan which specifies four focus areas

1. Developing positive community attitudes and behaviours

2. Creating liveable communities

3. Supporting access to meaningful employment

4. Improving access to mainstream services through better systems and processes

In preparing this plan Council conducted a review of existing documents and utilised a number of approaches as part of our broader consultations for the Community Strategic Planning review. This included;

· Community Surveys

· Focus Groups

· Targeted Consultations

A copy of the will be placed on public exhibition following this meeting providing a further opportunity for comment and feedback.

How these plans were developed in collaboration with our community

To inform the draft CSP 2040 and subsequent draft Resourcing Strategy, Delivery Program and Operational Plans, a Community Engagement Strategy based on social justice principles was adopted by Council. The engagement strategy ensured the draft CSP 2040 was developed in partnership between individuals, community groups, Council, other organisations and levels of government and addresses a broad range of issues relevant to the whole community.

The engagement strategy consisted of three main phases:

Understanding Our Place

This extensive engagement phase took place over several months in 2016 and involved around 2,000 members of our community through the ‘Understanding Our Place’ project. We recorded what the community loves most about living in the Bega Shire, what they value, the challenges they face living here, what they want to change and their vision for the future.

Information gathered through this project was published in the Understanding Our Place Report and was used to develop a series of community ambitions which were reported to Council, publicly exhibited in late 2016 and form the basis of the outcomes and goals of the draft CSP 2040. Following this exhibition, the draft CSP 2040 strategies and progress measures were developed.

Community Survey

A Community Survey to measure the community's perception of the importance of Council services, Council’s performance in the delivery of key services and facilities, and customer service was undertaken in late 2016 and the results reported to Council. The results assist Council to identify priority action areas for the delivery of Council services and facilities in the Bega Valley Shire over the period of the Delivery Program.

Focus Groups

After the development of the draft CSP 2040, development of the draft Resourcing Strategy, Delivery Program and Operational Plan commenced. These draft Plans incorporated the community’s priorities and expected levels of service expressed during the first engagement process as well as information from a range of other community consultation activities.

To test the priorities and direction of the draft CSP 2040 and draft Delivery Program were on track, a series of focus groups were held with interested members of the community and local government agencies and organisations. Following these focus groups, the draft documents were revised and further developed.

Formal public exhibition

This report proposes the final phase of engagement commences. This involves the formal public exhibition of all of the integrated Plans in accordance with the requirements of the Local Government Act 1993. Community feedback from the exhibition will then be considered by Council before the final documents are adopted.

Draft Bega Valley Shire Community Strategic Plan 2040

The draft Bega Valley Shire Community Strategic Plan 2040 (draft CSP 2040) is a long-term visionary Plan. It is the main strategic and aspirational document for our community and its purpose is to help individuals, community groups, Council, other levels of government and organisations build a stronger and better Bega Valley Shire.

The draft CSP 2040 is an overarching strategy to guide Council decision making and all other strategies, plans and policies developed by Council seeking to support the implementation of the draft CSP 2040. This ensures that what Council does within its area of control is always focussed towards the aspirations the community has articulated.

The draft CSP 2040 was developed following extensive community engagement through the Understanding Our Place project and incorporates the goals of NSW 2021, the draft South East and Tablelands Regional Plan and the strategies and actions from Council’s Fit for the Future Improvement Plan.

Throughout the life of the CSP 2040, Council will be listening to our community to ensure it continues to reflect their long-term aspirations. The CSP will be formally reviewed again in four years' time.

Delivering the Council’s Direction and Action

Council has developed a draft Delivery Program 2017-2021 and Operational Plan 2017-2018 which outlines what Council will do to help deliver the services required and manage the community’s assets and deliver where appropriate, actions to progress the community vision as articulated in the CSP 2040. The draft Resourcing Strategy outlines how the actions and activities of the draft Delivery Program and draft Operational Plan will be financed and staffed and the manner in which the community’s assets will be managed along with establishing the Council’s Long Term Financial Plan.

The Long Term Financial Plan, Delivery Program and Operational Plan are reviewed annually to ensure they are applicable in the changing environment that Council operates in and to incorporate community feedback. The Resourcing Strategy is reviewed every four years.

In addition to the draft CSP 2040, the draft Delivery Program, Operational Plan and Resourcing Strategy are also informed by a number of Council and NSW State Government strategies and plans with the 2016 Bega Valley Shire Council Community Survey which independently rates the importance and satisfaction of Council’s service delivery and performance.

Draft Bega Valley Shire Resourcing Strategy 2017 – 2027

The draft Resourcing Strategy outlines how some of the community’s aspirations can be achieved in terms of time, money, assets and people. It links the draft CSP 2040 and the four year Delivery Program and annual Operational Plan by detailing the provision of resources to implement the strategies for which Council is responsible. It aims to ensure Council has the financial capacity and human, technical and plant/fleet resources to deliver services and look after the management of the community’s assets.

The draft Resourcing Strategy is comprised of the Council’s draft Financial Policy, Strategy and Long-term Financial Plan; the draft Workforce Management Plan; the draft Asset Management Policy, Strategy and Asset Cass Plans; a draft Technology Strategy and a draft Plant and Fleet Action Plan.

Financial Management

The draft Financial Policy, Strategy and Long-term Financial Plan provide a long-term financial blueprint for Council and the community that allows for the cost effective delivery of works and services and appropriate maintenance and renewal of our significant asset base.

Council’s draft 10 Year Long Term Financial Plan has an emphasis on long-term financial sustainability. It also outlines how Council intends to ensure it maintains focus on the Fit for the Future ratios and the Council Improvement Proposal developed as part of being deemed Fit by the NSW Government in 2015.

The Long Term Financial Plan is updated annually through the development of the Operational Plan and reviewed every four years in conjunction with the CSP.

The Financial Strategy includes an assessment of the three models Council considered in developing its Long Term Financial Plan. These were:

· “As Is” – continuing with current framework of allocations of funding by service

· “Asset Management” – refocus current expenditure by service to move funding towards the achievement of the Asset Management Plans particularly in transport assets

· “Balanced” – add to the Asset Management model a series of special rate variations for community priority new projects.

Councillors determined the approach to be taken would be to move to the Asset Management model in year one (2017/18) by making reallocations of funding to the priority areas identified by the community through the Community Survey. During the period July to November 2017, Council will review in detail the Council’s Asset Registers and data in each Asset Management Plan looking to consider new models for service provision.

Councillors have indicated they will engage with the community in relation to potential consideration of special rate variations in subsequent years only when this review has been undertaken. Councillors also noted a number of asset reviews such as the Aquatic Facilities Review and the Public Amenities Reviews will inform this process. No consideration of whether any application for a special rate variation will be undertaken until this work is concluded. Councillors have discussed options for how such increase could be applied.

Potential areas for consideration relating to the introduction of special rate variations could include:

· Critical transport and community asset improvements including those aimed to build resilience against storm event damage

· Provision of new or upgraded assets recreation and sporting assets such as swimming pools

Councillors also indicated the potential opportunity presented through the current tourism review to investigate a new funding model for tourism promotions and marketing which may result in a review of the currently approved special rate variation for this purpose.

Workforce Management

Workforce Management Plans address Council’s human resourcing requirements for the four year period of the Delivery Program. The draft Workforce Management Plan aims to provide Council with the best people in the right positions to support its strategic direction and ensure there is capacity to develop innovative approaches to complex issues and deliver appropriate services effectively and efficiently.

Asset Management

The draft Asset Management Policy, Strategy and Plan articulates how Council will plan to manage over $1.45 billion of community assets.

The draft Asset Management Policy sets the broad framework for asset management throughout the Shire to support the CSP and Delivery Program.

The draft Asset Management Strategy has been prepared following a review of the service delivery practices and asset management maturity. It outlines an asset management improvement plan detailing a program of tasks to be completed and resources required to bring Council to a minimum ‘core’ level of asset maturity and competence.

The draft Asset Management Plan identifies asset service standards and outlines long term projections of asset maintenance, rehabilitation and replacement costs for all of the assets under Council’s control. The draft Asset Management Plan is an attachment to the Resourcing Strategy which is being exhibited as a separate document due to its size. Draft Asset Management Plans for each asset class are also on exhibition.

Technology Management

Council has developed its first draft Technology Strategy to identify the priorities for the allocation of resources to deliver the greatest value to the organisation and the community.

Plant and Fleet Management

The draft Plant and Fleet Action Plan explains how Council will be developing a draft Plant and Fleet Management Plan to link to the Resourcing Strategy ensuring the effective delivery of its works and services and to achieve the objectives of Council’s adopted Delivery Program and Operational Plan.

Draft Bega Valley Shire Delivery Program 2017 – 2021 and Operational Plan 2017 – 2018

The draft Delivery Program and draft Operational Plan is presented in one document which also includes financial estimates for the four year period and a detailed budget for the operational activities to be undertaken as well as a statement of Revenue Policy for the applicable financial year.

Delivery Program

The draft Delivery Program outlines which aspects of the draft CSP 2040 are under the direct control and responsibility of Council. It identifies what actions Council is going to do in the medium term to work towards the goals and strategies in the draft CSP 2040 within the resources available in the Resourcing Strategy.

The draft Delivery Program states what actions Council is proposing to do to work towards each of the draft CSP 2040 Outcomes over the next four years. The draft program also presents a description of what each of Council’s Service Areas does and indicates which Service Area is responsible for achieving the actions.

Four year financial estimates

The draft Delivery Program includes financial estimates for the four year period from 2017 – 2021.

Council’s Direction

The current Councillors have also developed a Charter for working together and an Organisation Direction Statement for the four year period which has also been included in the draft Delivery Program.

Operational Plan

The draft Operational Plan provides more detail about exactly what activities Council will take in the next financial year to achieve the four-year Delivery Program.

As outlined above a key activity in the year is the review of all assets and discussion on potential future funding models for discussion with the community.

The routine ongoing activities and Operational Plan 2017 – 2018 activities of each of Council’s Service Areas are presented separately along with the Budget summary for both types of activities for the financial year.

Revenue Policy

The draft Plan contains the statement of Revenue Policy which includes:

· details of estimated income and expenditure

· ordinary and special rates

· proposed fees and charges

· proposed pricing methodology, and

· proposed borrowings for the 2017-18 financial year.

Fees and Charges 2017 – 2018

The Council determines fees and charges for a range of services such as: planning and building; library; children’s services and facility usage. These fees and charges form part of the Revenue Policy. The fees and charges proposed for these services and facilities for the 2017-18 year is detailed in the draft Fees and Charges document, and are aligned to Council’s pricing policy, some of which are set by statute.

Council management committees have been provided the opportunity to submit their draft fees for 2017-18, and these have been included.

Budget Summary

The draft Plan also includes a 2017-18 Budget Summary which provides an overview of the total estimated income and expenditure for each of Council’s General, Waste, Water and Sewer funds as well as a breakdown of expenditure by Council services.

The allowable Local Government Cost Index Increase on rates for 2017/18 is 1.5% which raises approximately $330k (last year it was 1.8%). The other main income source from the Federal Government, known as the Federal Assistant Grant which covers funding to the operations of the Council and to roads has not increased since 2014/15 when indexation was frozen.

In 2016/17 all councils received a double allocation from the Roads to Recovery funding, $270K in Bega Valley Shire’s case, is not available for the 2017/18 year.

Major cost increases have been insurances which have increased in excess of $250k, audit costs have increased by $15k, RFS have increased $188k and employee Award based increases are 2.5%.

Council has applied a small increase to its fees as outlined in the Fees and Charges document. The full outline of the rates and charges is available in the Delivery Program.

Council has received requests from the following groups to consider funding in the 2017/18 budget:

· Sapphire Coast Tourism (SCT) and additional $95,000 to fund digital marketing and regional promotions

· Tathra Chamber of Commerce to provide funding for extended beach lifeguard season

Neither of these requests have been included in the draft budget and require Council consideration. If Council resolve to include these items then a reduction in another General Fund items would need to be identified.

Council also resolved at its meeting on 1 February 2017 following a Notice of Motion:

That Council consider an allocation of funding in the draft 2017/18 budget development to include going to expressions of interest for detailed design building on the current CBD masterplan and to establish detailed working plans, including traffic and parking plans, in consultation with the respective communities for Merimbula and Bermagui CBDs.

That strategic project planning of the detailed designs take into consideration, in consultation with key community stakeholders, budget development, including quantity surveying, so that Council can plan for full costs, and work can be staged when funding becomes available.

Included in the program for the 2017/18 year is an allocation to undertake work on the development of a Commercial Centres Study which will form the first stage of this work and provide the framework for the development of detailed designs. This would then proceed in subsequent years when funding for works has been identified.

General Rates

For General Rates, Council has applied only the allowable rate peg increase (LGCI) of 1.5%. This may manifest with a small variation in relation to various properties due to revaluations by the Valuer General carried out during the year.

The table below (Table 1) sets out the proposed General Rates for 2017-2018.

Table 1

Rates with 1.50% increase (income split base rate 40% / ad valorem 60%)

Category	Ad- valorem Amount ¢ in dollar	Base Rate $	Base Rate %	Number of Assessments	Rate Yield $	Rate Yield %
Residential	0.003877	$480.10	45.11%	17,654	$18,794,725	81.52%
Farmland	0.00396	$480.10	24.14%	981	$1,951,181	8.46%
Business	0.0074289	$480.10	17.80%	857	$2,311,198	10.02%
Mining	0.0074289	$480.10	0.00%	0	$0	0.00%
Total					$23,057,104	100.00%

Stormwater Levy

There is no proposed change to the current Stormwater Levy.

Waste Charges

Sections 496 and 504 the Local Government Act 1993 provide that the domestic waste management services of the Council must be financed by specific annual charges made and levied for that purpose alone. The Act prevents Council from applying ordinary rate income towards meeting the cost of domestic waste management services, nor can it use waste charge income for non-waste related functions.

The term ‘domestic waste management service’ relates to the services that comprise the periodic collection of waste, generated on domestic premises, from individual parcels of rateable land and the services associated with recycling activities provided to these properties.

The functions of domestic waste management services carried out by Council include, but are not limited, to the following:

· Collection of domestic waste

· Disposal and treatment of domestic waste

· Recycling and waste minimisation activities associated with domestic waste collection and disposal.

Domestic Waste	Charge
Domestic Waste Management	$402.50
Domestic Garden Organics	$55.50
Waste Service Availability Charge	$81.50
Additional General Waste Bin (140 Lt)	$209.50
Additional Recycling Bin (240 Lt)	$77.23

Commercial Waste	Charge
Commercial Waste Management	$557.50
Commercial Organics	$55.50
Additional General Waste Bin (240 Lt)	$232.00
Additional Recycling Bin (240 Lt)	$191.60

Water Charges

The access charge is calculated using a volume formula that is dependent upon the square of the size of the meter connection. The access charge is shown on the annual rate notice and it is independent of the level of water consumption during the year.

The base access charge is related to the cost of providing access to a 20 millimetre water connection. Access charges for larger water connections are based on increments of the base charge according to the volumetric factor shown in the table below.

The access charge is designed to cover some of the costs incurred by Council in providing infrastructure such as reservoirs, pump stations and reticulation systems. Because of the fixed nature of the costs incurred by Council in operating the infrastructure, the access charge applies to all properties able to connect to the system regardless of whether or not a connection is in place.

All properties falling within the defined water supply boundaries are subject to compulsory water access charges. For land that is exempt from water access charges, see the section under general rates.

Water usage charges

The water usage charge for 2017-2018 is set at $2.86 per kilolitre.

The water consumption charges are designed to meet the fixed and variable operating costs related to the provision of water supply.

The water charges for the 2017-2018 financial year are set out in the following table.

Particulars	Volume factor	Access charge	Charge per Kl
20mm Water Connection	1	$215.00	$2.86
25mm Water Connection	1.56	$335.40	$2.86
32mm Water Connection	2.56	$550.40	$2.86
40mm Water Connection	4	$860.00	$2.86
50mm Water Connection	6.25	$1,343.75	$2.86
65mm Water Connection	10.56	$2,270.40	$2.86
80mm Water Connection	16	$3,440.00	$2.86
100mm Water Connection	25	$5,375.00	$2.86
150mm Water Connection	56.25	$12,093.76	$2.86
200mm Water Connection	100	$21,500.00	$2.86
Strata Title Units (per unit)	1	$215.00	$2.86
Unconnected properties which are able to connect (i.e. vacant land)	1	$215.00	$2.86

Sewer Charges

Residential charges

The residential sewage charge is based on a series of flat charges for all residential properties connected to Council’s sewage service network as set out below:

· A flat charge for all residential or farmland properties of $1,181 (other than strata and non-strata units);

· A flat charge for all residential strata title units of $1,181

· A flat charge for all residential non-strata title units of $1,181 for each unit;

· A flat charge of $591.50 for all properties that are able to connect to the Council’s sewage service network and remain unconnected.

Non-residential charges

Non-residential sewer charges are calculated using a formula prescribed by the NSW Department of Water Best Practises guidelines.

The formula is:

Access = Base Access Charge x Volume Factor x Discharge Factor Consumption = Consumption Rate x Discharge Factor

New Charges – Council will collect the State Fire and Emergency Services Levy

In 2017/18 there will be an additional charge on the Council’s Rates Notice. This relates to the Fire and Emergency Services Levy recently introduced by the NSW State Government. The objective of this Levy is to support the work of Fire and Rescue NSW, the NSW Rural Fire Service and the NSW State Emergency Service. Council will collect this Levy on behalf of the State Government. Information has been sent to all property owners by the NSW State Government in relation to this Levy. The new charge will be introduced as of 1 July 2017 and will appear for the first time on Rates Notices in August 2017. The intent of the new Levy is to see a reduction in household insurance policy costs. Further information is available at the website: fesl.nsw.gov.au

Summary of Budget items:

In summary, the 2017-18 Operational Plan and Budget includes:

- Revenue of $93.0m

- Operating expenditure of $89.3m which is used to provide services to the community

- Capital expenditure of $38.0m which is used to renew and replace the community’s assets

- The balance funded by a drawdown on reserves and $3.8m utilisation of loan funds

- Applies the Asset Management model as considered in the Financial Strategy for year one of the LTFP and directs funding towards key infrastructure categories within the budget capacity to do so without loss of services.

Issues

Legal /Policy

Under the Local Government Amendment Act, Council is required to develop plans as outlined above and to publicly exhibit documents in the IPR framework for a period of 28 days.

The Disability Inclusion Act 2014 (DIA) demonstrates the ongoing commitment of the NSW Government to building an inclusive community and requires the government to produce a Disability Inclusion Plan. The NSW Disability Inclusion Plan supports the DIA and provides a strategy to implement the Act’s objects and principles across government and the community. Disability Inclusion Action Plans (Action Plans) also mandated by the DIA, play a critical role in promoting the ethos of inclusion and provide the practical measures by which intent is transformed into action by agencies and local government.

The Disability Inclusion Act 2014 defines disability as:

‘The long-term physical, mental, intellectual or sensory impairment which in interaction with various barriers may hinder the full and effective participation in society on an equal basis with others.’

This definition reinforces the importance of viewing disability as the result of interaction between people living with a range of impairments and their physical and social environment. Disability is not just about the impairment. The onus to break down barriers rests with the whole community.

Disability action planning is not a new approach. Since the introduction of the NSW Disability Services Act 1993 (DSA), all NSW government departments and some other government bodies have been required to undertake disability action planning. The DIA replaces the DSA, and strengthens the commitment to inclusion, consultation with people with disability and protection of their rights.

These guidelines apply to all NSW government departments, some other government agencies and statutory bodies which are included in the Disability Inclusion Regulation 2014 and local councils. The term ‘public authority’ is used throughout these guidelines to describe these entities. Of course all other bodies or organisations that are not required to make Action Plans by law, but which choose to do so, can follow these guidelines too.

Under the Disability Inclusion Regulation 2014, public authorities that are required to have Action Plans are required to have them in place by 1 December 2015. Local councils are to have Action Plans in place by 1 July 2017.

Strategic

The Community Strategic Plan 2040 and the linked documents set the strategic framework for the term of the current Council.

Community Engagement and/or Communications

As outlined previously, there has been extensive community engagement in the development of this suite of documents through the Understanding Our Place project, the community survey, and Focus Groups. The Council is now required to publicly exhibit its draft IPR documents. Public exhibition will include documents being available in all library branches, on Council’s website and advertisements in local paper and electronic media.

Conclusion

This year Council is proposing the adoption of an entirely new suite of IPR documentation. The draft Community Strategic Plan 2040 has been developed following an extensive and successful community engagement process which has informed the development of all of the other IPR documents.

Council is also placing on exhibition its first Disability Inclusion Action Plan, a key document and step forward in making the Shire a more inclusive place.

Council will consider all submissions made during the exhibition prior to adoption of the Plans, Policies and Strategies in June 2017 prior to adoption at the Council meeting on 28 June 2017.

Following the adoption of the documents, Council will begin implementing the Plans and Strategies and report regularly on the progress made.

Attachments

Nil

Recommendation

1. That the draft Bega Valley Shire Community Strategic Plan 2040 be placed on public exhibition for 28 days from 18 May until 14 June 2017.

2. That the draft Bega Valley Shire Resourcing Strategy 2017 – 2027 be placed on public exhibition for 28 days from 18 May until 14 June 2017.

3. That the draft Bega Valley Shire Delivery Program 2017 – 2021 and Operational Plan 2017 – 2018 including Council’s Budget and Revenue Policy and all Rates and Annual Charges, be placed on public exhibition for 28 days from 18 May until 14 June 2017.

4. That the draft Disability Inclusion Action Plan (DIAP) 2017-2020 be placed on public exhibition for 28 days from 18 May until 14 June 2017.

5. That the draft Bega Valley Shire Fees and Charges 2017 – 2018 be placed on public exhibition for 28 days from 18 May until 14 June 2017.

6. That all submissions received during the exhibition period be considered by Council prior to adoption of the documents.

Council 17 May 2017

Item 14.1

14.1. Proposed Projects for 2016/17 Public Domain Building Special Rate Variation

Bega Valley Shire Council was successful in obtaining a Special Rate Variation (SRV) in June 2013 for the purpose of funding the renewal and upgrade of its public domain building assets. This report nominates various projects and seeks formal Council approval to fund those projects from the SRV.

Director Strategy and Business Services

Background

The Independent Pricing and Regulatory Tribunal (IPART) approved Council’s application under Section 508A(1) of the Local Government Act 1993 for a Special Rate Variation (SRV) on 12 June 2013 for the purpose of funding its program of asset renewals and upgrades, including public halls and public domain buildings. Dedication of SRV funds toward building upgrade and renewal projects enables Council to increase spending on routine building maintenance which in turn prevents early deterioration of assets.

Council reports each rating year through its Annual Report on the program of expenditure that was funded by the SRV and the outcomes achieved as a result of the special variation.

Council has engaged the services of an external consultant to prepare a Condition Assessment Report on all Council owned and managed building assets. Once the final report is received by the consultant, a list of projects for the 2017/18 financial year will be compiled based on priorities identified in the consultant's findings. There are however several smaller projects which have immediate work health and safety considerations which are being recommended for completion using the remaining balance of the SRV funds for the 2016/17 financial year.
Issues

Legal /Policy

Following an Organisational Review in 2014, the function and operation of Council’s building assets was delegated to the functional asset owner of each facility. The functional asset owners have direct control and responsibility for the day to day operations and maintenance of their assets, however to assist with renewal and upgrade programs and centralised procurement of routine maintenance and services, a Functional Asset Owners Group was established. The main focus of the Group is to oversee the operational governance of the building asset portfolio and collectively determine suitable projects to be funded from the SRV. The Functional Asset Owners Group meets on a monthly basis and operates within a Charter.

Strategic

The projects which have been identified by the Functional Asset Owners Group for funding from the 2016/17 SRV are:-

Eden Childcare Centre – Kitchen Renewal

The commercial kitchen at the Council owned and operated Childcare Centre in Eden requires a modern equivalent renewal due to various compliance issues identified in a recent food premises assessment report. The issues identified solely relate to non-compliance with current standards for a commercial kitchen of this nature. The existing kitchen is from the building's original construction and is over 20 years old. It requires significant modification and a complete renewal would be the most cost effective.

Estimated Project Cost (based on quotes obtained) $50,000

Bandara Childcare Centre – Kitchen Renewal

As with the Eden Childcare Centre above, the Bandara Centre is also a Council owned and operated childcare centre located in Bega. The kitchen is of a similar era and size to that of the Eden Childcare Centre and requires significant investment for modern equivalent renewal due to non-compliance with current standards.

Estimated Project Cost (based on quotes obtained) $50,000

Merimbula Old School Museum – Re-wiring Renewal

Recent electrical works carried out at the museum have identified the electrical installation at the museum requires a complete rewiring to bring it up to current standards. The existing installation is extremely old and poses a risk to the heritage listed asset as well as a safety aspect for customers and volunteers working at the museum.

Estimated Project Cost (based on quotes obtained) $4,500

Murrah Hall – Septic Renewal

The Murrah Hall has an outdated septic system and expired absorption trench to allow for the high volume events that occur on a regular basis at the Hall. The existing tank is in reasonable condition and has recently been pumped out. Using this as part of the new retro fitted waste water treatment system and Fuji clean system will ensure a safe and effective system into the future that does not pose any environmental concerns. Work will also include excavation, plumbing and associated electrical works.

Estimated Project Cost (based on quotes obtained) $13,000

Bermagui Community Centre – Staircase Renewal and Tread Upgrade

The main external staircase leading into the Bermagui Community Centre is in need of repair and upgrade. The span of the timber stairs has proven to be too long and a sag in some treads has created an inconsistent rise in the steps causing a major trip hazard. The stairs need a new metal mid span support to the treads which is to be bolted to the frame and concrete slab. Some other treads need replacing. In addition to this, the timber staircase located to the rear of the building requires a complete renewal as all treads and side supports have suffered timber rot and are failing.

Estimated Project Cost (based on quotes obtained) $8,157

Bega Council Administration Building – Fire Rated Wall Upgrade

Following construction of the Bega Valley Commemorative Civic Centre, the lower section of the wall between the Civic Centre and the Administration Building was not completed and is exposed to the elements. It also does not meet the Building Code of Australia’s fire rating. As Council did not have funds available for the renewal and upgrade of building assets, this project has remained unfinished and poses a risk to building security and staff safety.

Estimated Project Cost (based on quotes obtained) $18,000

Total of all proposed projects $143,657

Operational / Asset Management Plan

Council’s Building Asset Management Plan provides that the organisation will plan capital renewal and replacement projects to meet level of service objectives and minimise community building service risks by:

· Planning and scheduling renewal projects to deliver the defined level of service in the most efficient manner;

· Using innovative and/or cost efficient renewal methods (so that cost of renewal is less than replacement) wherever possible;

· Develop an infrastructure risk register for assets and service risks associated with providing services from infrastructure assets and reporting Very High and High risks and residual risks after treatment to management and Council;

· Maintain a current hierarchy of critical assets and capital renewal treatments and timings required; and

· Review management of capital renewal and replacement activities to ensure Council is obtaining best value for resources used.

The ranking criteria used to determine priority of identified renewal and replacement proposals weighs risk/safety highly.

Financial and resource considerations

The annual amount available from the Special Rate Variation for public domain buildings is $441,000. For the information of Councillors, the available balance is as follows:-

Opening balance from 2015/16 financial year                                              $60,000
SRV Levied 2016/17                                                                                              $441,000
Total                                                                                                                           $501,000

Projects already approved and funded for 2016/17 financial year:

Upgrade/Renewal works at Pambula Public Hall                                        $42,000
Upgrade/Renewal works at Wandella Public Hall                                       $19,000
Upgrade of safety rail at Mechanical Workshop (Bega Depot)             $10,000
Condition Assessment Reporting (Consultant Fees)                                 $90,000
Total SRV Funds Committed                                                                             $161,000

Total SRV Funds Currently Available $340,000

Funding source		Amount
Current balance of Special Rate Variation for Renewal/Upgrade of Public Domain Buildings 2016/17	$	340,000

Risk

If the two Childcare Centre kitchens renewal work cannot be funded from the SRV, alternate arrangements for the preparation of food for the children who use the centre each day will need to be made. This may require outsourcing this function or having the meals prepared off site in a commercial kitchen elsewhere.

Each of the other projects recommended have either safety or environmental risks associated with them and should be attended to without delay.

Options

Council does not currently have funds available for the renewal or upgrade of its building assets. If the projects recommended cannot be funded from the SRV the works will not be able to proceed.

Conclusion

If Council approves the renewal and upgrade projects recommended in this report, a balance of $196,343 will be available for further SRV projects. The results of the recent condition assessment carried out by MBM Consultants of all Council’s building assets will assist the Functional Asset Owners Group to determine priority projects for the 2016/17 SRV balance as well as the SRV for 2017/18. A report will be presented to Council within the first quarter of the 2017/18 financial year recommending suitable upgrade and renewal projects for its public domain buildings.

Attachments

Nil

Recommendation

1. That Council approve the following public domain building upgrade and renewal projects to be funded from the Special Rate Variation for the 2016/17 financial year:

· Eden Childcare Centre - kitchen renewal;

· Bandara Childcare Centre - kitchen renewal;

· Merimbula Old School Museum - electrical rewiring renewal;

· Murrah Hall – septic renewal;

· Bermagui Community Centre – external staircase renewal and tread upgrade;

· Bega Council Administration Building – fire rated wall upgrade.

2. That Council note that after funding the above projects, a balance of $196,343 will be available for further Special Rate Variation projects to be determined by Council in the first quarter of the 2017/18 financial year.

Council	17 May 2017
*Item 10.1 - Attachment 2*	Cemetery Advisory Committee Guidelines 2016-2020

Council	17 May 2017
*Item 11.1 - Attachment 1*	Draft Deed of Variation

Council	17 May 2017
*Item 11.1 - Attachment 2*	Executed Due Diligence Deed of 15 June 2016

Council	17 May 2017
*Item 11.1 - Attachment 3*	Request to extend Due Diligence

Criteria	Weighting
Price	60%
Project Experience	15%
Project Functionality	20%
Local Community Benefit	5%
WH&S	Compliant/Non-Compliant
Total	100%

Funding source		Amount
Revenue from purchase at settlement	$	1,300,000

Funding source		Amount
Special Rate Variation (SRV) Collector Roads	$	426,000

Funding source		Amount
General Fund – Bridge Allocation	$	350,000

Funding source		Amount
General Manager’s grants allocation	$	4,000

Table 1: Investments by Fund $’000
Fund	Feb 2017	Mar 2017	Apr 2017
General Fund	$17,294	$14,375	$11,832
Water Fund	$13,486	$14,198	$14,038
Sewer Fund	$20,120	$26,327	$26,030

Table 2: Restricted Cash and Investment by Fund $’000
Fund	External Restrictions	Internal Restrictions	Total
General Fund	$6,510	$5,322	$11,832
Water Fund	$3,767	$10,271	$14,038
Sewer Fund	$6,628	$19,402	$26,030

Council	17 May 2017
*Item 14.2 - Attachment 1*	Certificate of Investment April 2017

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

Local Government Act 1993 and Model Code of Conduct

Agency advice

Disclosure of pecuniary interests / non-pecuniary 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 Urgent Business

8 Adjournment to Standing Committees

Recommendation

9 Staff Reports – Planning and Environment (Sustainability)

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

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

12 Staff Reports – Infrastructure Waste and Water (Accessibility)

13 Staff Reports – Governance and Strategy (Leading Organisation)

14 Staff Reports – Finance (Leading Organisation)

15 Adoption of Reports from Standing Committees

Recommendation

16 Delegates Reports

17 Rescission/alteration Motions

18 Notices of Motion

19 Questions On Notice

20 Questions for the Next Meeting

21 Confidential Business

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

Statement of Re-Commencement of Live Streaming

22 Adoption of reports from Closed Session

23 Resolutions to declassify reports considered in closed session

Council

17 May 2017

Staff Reports – Community, Culture and Leisure (Liveability)

17 May 2017

10.1. Cemetery Advisory Committee Nominations

Background

Issues

Legal /Policy

Strategic

Operational / Asset Management Plan

Social / Cultural

Community Engagement and/or Communications

Financial and resource considerations

Risk

Conclusion

Attachments

Recommendation

Council

17 May 2017

Staff Reports – Economic Develoment and Business Growth (Enterprising)

17 May 2017

Council

17 May 2017

Staff Reports – Infrastructure Waste And Water(Accessibility)

17 May 2017

Council

17 May 2017

Staff Reports – Governance And Strategy (Leading Organisation)

17 May 2017

Staff Reports – Finance (Leading Organisation)

17 May 2017

Confidential Business

Adjournment Into Closed Session

Recommendation