Agenda of Council - 6 November 2019

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 Bega Valley Shire Council (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 5.11 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 5.11 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 6 November 2019

Item 6.1

6.1. Recycling Campaign - Local Government NSW

Cr McBain, Mayor

Officer’s Recommendation

1. That Council acknowledges the growing imperative to manage waste and recycling within NSW and calls for urgent action from the State Government to help build a circular economy in NSW.

2. That Council recognises initiatives and projects taken within the Bega Valley local government area to help achieve this goal, including those initiatives identified in the 2018-2028 Waste Strategy.

3. That Council endorses Local Government NSW’s sector-wide Save our Recycling campaign, and asks the State Government to reinvest the Waste Levy by:

a. Funding councils to collaboratively develop regional-scale plans for the future of waste and recycling in their regions

b. The delivery of the priority infrastructure and other local government projects needed to deliver regional-scale plans, particularly where a market failure has been identified

c. Support for the purchase of recycled content by all levels of government, to help create new markets

d. Funding and delivery of a state-wide education campaign on the importance of recycling, including the right way to recycle, the purchase of products with recycled content and the importance of waste avoidance.

4. That Council write to the local State Member(s), Minister for Energy and Environment the Hon Matthew Kean MP, Local Government Minister the Hon Shelley Hancock MP, NSW Treasurer the Hon Dominic Perrottet MP, Premier the Hon Gladys Berejiklian MP, Opposition Leader Jodi McKay MP, Shadow Minister for Environment and Heritage Kate Washington MP, and Shadow Minister for Local Government Greg Warren MP to confirm their support for recycling and outline the urgent need to educate, innovate and invest in local waste and recycling services via the Waste Levy.

5. That Council shares and promotes the Save Our Recycling campaign via its digital and social media channels and via its networks.

Background

I am calling on Councillors to support the local government sector’s Save Our Recycling campaign as outlined in the Local Government NSW report At the Crossroads: The State of Waste and Recycling in NSW.

The NSW Government collects revenue from a Waste Levy via licensed waste facilities in NSW to discourage the amount of waste being landfilled and to promote recycling and resource recovery. According to the latest NSW Budget papers, this totalled $772 million in 2018/19.

Revenue from the Waste Levy is expected to increase by about 70 percent from 2012/13 to 2022/23. By the end of this period the Waste Levy revenue is forecast to have increased to more than $800 million a year: $100 for every woman, man and child in NSW. Yet, only a small portion –less than one fifth – of this revenue is invested back into waste and recycling programs.

The NSW Government promised a major education campaign to help support kerbside recycling in 2015. However, this has not been delivered. A Waste Infrastructure Plan and a new Waste Strategy are also overdue.

The Government is also likely to miss key targets in its existing Waste Avoidance and Resource Recovery Strategy 2014-21. Its latest 2017/18 Progress Report shows that in NSW:

· household recycling rates are decreasing

· less waste per person is being diverted from landfill

· the amount of waste being generated is expected to grow by 36 percent by 2036 – well above population growth.

Recent decisions by China and other countries to put in place measures to stop the importation of plastic and paper recycling from countries like Australia are also making it more challenging to find markets for recycled products.

This combination of a lack of funding, planning and action has left our state-wide waste and recycling systems in a poor state.

Local councils in NSW are calling on the NSW Government to reverse this downward slide: to invest the money it collects from the Waste Levy to help fix our state’s ailing waste and recycling, and help build a circular economy in NSW.

Local Government’s Save our Recycling campaign outlines ways the State Government can work with us to properly develop, fund and deliver the waste and recycling systems our communities deserve.

It is a blueprint for the NSW Government to invest the money it collects from the Waste Levy to help fix our ailing recycling services and build a circular economy in NSW.

The campaign focuses on the following key areas for NSW Government action:

Education: Fund a large-scale, state-wide education campaign to support recycling and markets for recycled products in NSW. The NSW Government must fund and work with councils to activate this campaign; community by community.

Innovation: Greater use of more recycled content by all tiers of government to help create scale, and then new markets, jobs and investment will follow.

Investment: Reinvest the Waste Levy in council-led regional waste-and-recycling plans and fund councils to deliver the infrastructure and services our cities and regions need.

In 2018, delegates at the LGNSW 2018 Conference unanimously voted to call on the NSW Government to reinvest the Waste Levy in recycling and waste infrastructure and programs.

The 2019 Conference further supported this approach, outlining specific solutions to the waste and recycling crisis which could be delivered in partnership with local government. These steps are outlined in the wording of this Mayoral Minute, and include:

· Funded regional waste plans for the future of waste and resource recovery developed by councils for their regions.

· Funding for and delivery of the priority infrastructure and other local government projects necessary to deliver these regional-scale plans, particularly where market failure has been identified

· Increased local and state government procurement of recycled goods made with domestic content, e.g. recycled content targets to help drive demand and provide incentives to deliver on these targets.

· funded research, development and delivery of recycling technologies and products generated from recyclables, particularly by local or regional councils.

Attachments

1 ⇩. Local Government NSW "At the Crossroads" brochure

Council 6 November 2019

Item 11.1

11.1. Tura Beach Country Club tenure

Council has received a request from Tura Beach Country Club Limited (TBCC) regarding an extension of tenure for their occupation of Council Managed Crown Reserve (R95834) at Tura Beach.

Director Assets and Operations

Officer’s Recommendation

1. That Council receive and note the report.

2. That subject to determination of the Aboriginal Land Claim and a Native Title assessment, Council, as Crown Land Manager of Reserve (R95834), approve a further twenty year lease to the Tura Beach Country Club Limited, for their continued occupation of the Tura Beach golf course land, for an annual market rental as determined by a registered Valuer.

3. That Tura Beach Country Club Limited be responsible for the payment of all costs associated with the preparation of the lease including the determination of the Aboriginal Land Claim and a Native Title assessment.

4. That Council authorise the General Manager and Mayor to execute all necessary documentation to provide further tenure of twenty years.

Executive Summary

Tura Beach Country Club Limited (TBCC) is seeking a new lease for their continued occupation of the golf course land at Tura Beach. In accordance with clause 70 of the Crown Land Management Regulations 2018 (NSW) (CLM Regulations) renewal of existing leases over pre-Plan of Management (Pre-PoM) Crown Land, for a term not exceeding 21 years, is permissible when there was a pre-existing lease in force immediately before the repeal of the Crown Lands Act 1989 (NSW) (CL Act) providing that the new lease does not authorise any uses for the land that are additional to uses that were permitted under the previous lease.

Background

Council resolved at its Ordinary Meeting of 25 June 2002, to provide Merimbula Imlay Bowling Club Limited with a twenty year lease to occupy the Tura Beach Golf Course land being Council Managed Crown Reserve (R95834). The current lease commenced on 1 July 2002 and is not due to expire until 30 June 2022. A further report was presented to Council’s Ordinary Meeting of 29 November 2011 to assign the lease to TBCC due to a de-amalgamation of Club Sapphire and the Tura Beach Country Club. TBCC have applied to surrender the remaining term of their lease and for Council, as Crown Land Manager, to grant a further twenty years lease to provide them with long term security of tenure.

The Crown Land Management Act 2016 (NSW) (CLM Act) authorises Councils that are appointed to manage dedicated or reserved Crown land, to manage that land as if it were public land under the Local Government Act 1993 (NSW) (LG Act). Generally Council Crown Land Managers will manage land as if it were community land. Under the LG Act, a plan of management must be adopted for all community land. Compliant plans of management must be in place within three years of the CLM Act commencing, to ensure the Crown Land is lawfully used and occupied.

Prior to the adoption of a compliant plan of management over Crown Land, Council is able to renew existing leases for a term not exceeding 21 years, providing there is no change to the use and also grant new leases for a term not exceeding 21 years, if there was a lease in force over the land immediately before the repeal of the CL Act and there are no permitted uses for the land under the new lease that are additional to those permitted under the previous lease.

Options

The primary options available to Council are:

1. Accept the recommendation provided by Council officers to grant additional tenure to TBCC for their occupation of Reserve (R95834) and resolve accordingly.

2. Carry out a public expression of interest process for the use of the Reserve. Noting in light of the limitations of the Crown Reservation as well as the recent Aboriginal Land Claim lodged by the NSW Aboriginal Land Council and Native Title Claim in the Federal Court over all South Coast Crown Reserves, continuing with the current occupancy arrangements is the preferred option at this stage.

3. Maintain vacant possession of the Reserve for Council purposes. Noting this option will require the identification of funds to undertake necessary planning for the use of the Reserve and ongoing maintenance and operational budgets.

4. Give formal notice to the New South Wales Minister for Lands and Forestry of Council’s intention to divest of its management responsibilities under the CLM Act of Council Managed Crown Reserve (R95834).

Community Engagement

Consultation undertaken

Council officers have met with representatives from TBCC who have indicated they would like additional long term tenure over the golf course land.

Consultation Planned

In accordance with the provisions of section 47 of the LG Act if Council proposes to grant a lease, in respect of community land for a period exceeding 5 years, it must:

· Give public notice of the proposal (including on the council’s website), and;

· Exhibit notice of the proposal on the land to which the proposal relates;

· Give notice of the proposal to such persons as appear to it to own or occupy the land adjoining the community land, and;

· Give notice of the proposal to any other person, appearing to the Council to be the owner or occupier of land in the vicinity of the community land, if in the opinion of the Council the land the subject of the proposal is likely to form the primary focus of the person’s enjoyment of community land.

Council consideration of input

To ensure the continued use and occupation of the reserve is appropriate for the lease, Council officers will consider the following prior to issue of a new lease:

· Compliance with the legislation, related policies and guidelines;

· Compatibility with the Reserve purpose of Public Recreation;

· Native Title rights;

· Aboriginal land claims;

· Environmental and drainage issues at the site;

· Market value and providing a proper return to the public for use of the public land.

Financial and resource considerations

The current annual rental payable by TBCC is determined as follows:

2.5% of the sum of the following:

· 66.6% of the members subscription income; and

· 100% of visitors greens fees.

These amounts are to be obtained from the highest annual amount of these two income items from the two previous annual reports of the lessee. A further rental rebate of 40% applies if the TBCC can demonstrate for the previous year that:

· At least 33% weekday playing times and 25% weekend/public holiday playing times have been available to the general public at reasonable playing fees that are not in excess of $30 which amount is subject to review in line with the Consumer Price Index;

· Public playing opportunities are to be displayed prominently to public view on a suitable sign near the TBCC entrance.

The annual lease fee for 2018 was calculated to be $5,302.70.

For any new lease agreement an updated market rental assessment will need to be commissioned by Council to determine an appropriate rental figure for the site to ensure a proper return to the public for use of the Reserve.

Council’s Management of Leases and Licenses Procedure provides that:

· All lessees shall be responsible for the payment of all outgoings on the property; including (but not limited to): Council rates and charges (if applicable); land tax; water; electricity; gas; telephone; and any other operating costs associated with their respective activities.

· The lessee shall be responsible for the payment of all costs associated with the preparation of the lease.

Council officer time has been required to consult with the lessee and Crown Lands regarding the requirement for a new lease agreement. Ongoing management of the lease during the term will also need Council officer resources as required.

Legal /Policy

Council’s ability to lease Council Managed Crown Reserves as community land is authorised by section 3.22 of the CLM Act, which requires the preparation of a community land plan of management, adopted by Council, to authorise the occupancy and use agreement. However, Council Crown Land Managers are exempt from the operation of section 3.22 of the CLM Act during the initial transitional period of three years and prior to the preparation of a plan of management to enable transitional security and the operation, management and use of tenures. This exemption is pursuant to clause 70 of the CLM Regulations and applies to the renewal of existing leases over pre-PoM Crown land for a term not exceeding 21 years if there are no additional permitted uses for the land, there was a lease in force over the land immediately before the repeal of the CL Act and there are no permitted uses for the land under the new lease that are additional to those that were permitted under the previous lease.

As the proposed lease may affect Native Title interests in the Reserve, Council when exercising powers provided by these transitional arrangements, must obtain written advice from a qualified Native Title manager that the lease complies with Native Title legislation.

A lease must not be granted over land that is the subject of an undetermined Aboriginal Land Claim, if the proposed lease could:

· Prevent the land being transferred to an Aboriginal Land Council in the event the claim is granted;

· Impact or change the physical condition of the land. Where the proposed lease will impact or change the physical condition of the land, the grant of the tenure must only be considered if the Council Crown Land manager or proposed lessee has obtained a letter of consent from the claimant Aboriginal Land Council or the claimant Aboriginal Land Council has withdrawn or amended the claim to exclude the proposed tenure area.

To ensure any possible Land Claim issues are resolved before proceeding with the proposed lease, Council officers will liaise with the Bega Local Aboriginal Land Council and NSW Aboriginal Land Council regarding the bulk claim lodged over all Crown Reserves in the Shire.

For these reasons entering into direct negotiations with the current operator was considered the most appropriate option in this instance.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

In accordance with Council’s Management of Leases and Licenses Procedure, a lease may be granted by:

· Private treaty.

The purpose of the lease must be compatible with:

· The purpose/s of the Crown Land reservation/dedication; or

· The land classification under Section 26 of the LG Act;

· The Plan of Management adopted for the site; and

· The permitted use under Council’s Local Environmental Plan.

It must also be established as to whether the lease will benefit or provide a service or facility to Reserve users. These issues must be addressed by the Council Crown Land Manager, where the lease is for the occupation of Crown Land and details provided that clearly demonstrate the proposal is not inconsistent with and does not interfere with the Reserve purposes.

The Reserve is zoned RE1 Public Recreation. The zoning permits the following land uses with consent: “Aquaculture; Boat launching ramps; Boat sheds; Building identification signs; Business identification signs; Caravan parks; Centre-based child care facilities; Community facilities; Environmental facilities; Flood mitigation works; Information and education facilities; Jetties; Kiosks; Markets; Recreation areas; Recreation facilities (indoor); Recreation facilities (major); Recreation facilities (outdoor); Registered clubs; Respite day care centres; Roads; Sewage treatment plants; Water recreation structures”. The golf club falls within the definition of Recreation facilities (outdoor) and is therefore consistent with planning provisions.

Environmental / Sustainability

The Reserve contains significant environmental values in the form of threatened species, threatened species habitat and areas of Endangered Ecological Communities listed under the Biodiversity Conservation Act 2016 (NSW) (BC Act). Council has been working with the TBCC through provision of advice on appropriate environmental management and approvals for vegetation clearing on the Reserve. Council will continue to play a role in the regulation of any vegetation clearing on the Reserve under the State Environmental Planning Policy (Vegetation in Non-Rural Areas) 2017 (NSW) and/or the BC Act. Council intends to clarify the roles and responsibilities regarding the environmental management of the Reserve in the proposed new lease. A component of this formalisation of environmental management would be the development of a vegetation management plan detailing ecological values such as Merimbula Star-hair, Yellow-bellied Glider habitat trees and Endangered Ecological Community locations, providing a risk assessment and identifying appropriate management actions.

It is also noted that recycled water from the Tura Beach Sewer Treatment Plant (STP) is used to irrigate the Reserve at TBCC. Recycled water from the STP is pumped to a 5kL storage tank adjacent to the golf course irrigation pond. The recycled water then gravitates from the 5kL storage tank to the golf course irrigation pond. This pond is situated 300m west of the STP and has a total capacity of approximately 20ML although, due to siltation, it may only store about 12ML. The infrastructure used in the storage and transfer of recycled water is shown below for the information of Councillors.

Currently there is no formal agreement in place for the water and sewer infrastructure within the Reserve and it is proposed that prior to entering into any new lease agreement a formal arrangement be negotiated with TBCC.

TBCC own and are responsible for the operation and maintenance of the recycled water infrastructure downstream of the Transfer Point as detailed in the attached draft Agreement. Council officers recognise and appreciate that TBCC make it possible to utilise an available water resource that would otherwise be wasted and will therefore work to ensure this positive use can continue.

Economic

Council officers have advised that the following maintenance has been undertaken on the drainage system within the Reserve over the term of the current lease:

· Circa 2003/2004 Council rebuilt the drainage line running parallel with the 14th Fairway and along the rear of lots 17 to 23 in DP 1020270. It is thought this work cost Council in the order of $30K.

· Circa 2006 Council engaged a contractor to undertake drainage design for increased capacity upgrade on an existing system discharging into the Golf Clubs storm water dam. The design was then put out to quote for the purpose of construction. The upgrade was constructed some time later and cost Council approximately $25K.

· Council has been previously asked to reconstruct the open drainage channel that runs across the 2nd Fairway. Council officers have pushed back on this request as the terms of the current lease state the internal drainage maintenance is the responsibility of the lessee.

· A significant issue for the Reserve is that it is part of the natural drainage system which receives overland flow along with concentrated flow via storm water and inter-allotment drainage discharge. Any new lease needs to be clear in spelling out the responsibility of each party.

Council is in the process of undertaking drainage maintenance on potentially three separate open drains which course through the Peninsula Estate. There has been significant build-up of sediment from the golf course and surrounding catchments which then has led to dense infestation of vegetation within the drainage lines. The works will amount to the tens of thousands of dollars, dependent on the scope of the work to be undertaken. This drainage systems feeds directly into the golf course overland drainage paths and if not removed will add to the burden of the downstream drainage system within the Reserve held under lease by TBCC. This work is considered to be preventative and should assist with the drainage maintenance downstream.

Council officers have also explored potential grant funding options for the site to assist TBCC. The potential funding opportunities Council officers have identified come from a variety of sources (where Council would not be able to be the applicant). For this reason a suitable Grant Writing Assistance Program (GWAP) is suggested to TBCC. Golf Australia is in partnership with grant writing experts, Red Tape Busters who provide golf clubs and facilities around Australia with access to new GWAP. Suitable funding programs available would potentially include:

· Sport Australia - Community sport infrastructure grant program;

· Office of Responsible Gambling – Infrastructure grant.

Risk

There are no adverse risks in allowing the Reserve to be occupied as long as the use is authorised by way of a formal lease agreement which contains appropriate indemnity and insurance clauses.

Council officers will be required to undertake a Native Title assessment and send notification to NTS Corp regarding a proposed new lease as it may affect Native Title interests in the Reserve. When exercising powers provided by the transitional arrangements under the CLM Act, Council Crown Land Managers must obtain written advice from a qualified Native Title Manager that the proposed lease complies with the Native Title Act 1993 (Cth).

Attachments

1 ⇩. Draft Agreement for the supply of recycled water from Tura Beach STP for use by Tura Beach Country Club

Council 6 November 2019

Item 11.2

11.2. Draft BVSC Public Toilets Strategy

A draft Public Toilet Strategy has been developed with the intention of providing a broad strategy guiding the direction for future management and renewals of public toilets. This report has been developed seeking endorsement for the strategy.

Director Assets and Operations

Officer’s Recommendation

That Council endorse the Draft Bega Valley Shire Council Public Toilets Strategy.

Executive Summary

The provision of safe and accessible public toilets is an important function of local government. Bega Valley Shire Council owns and manages a large portfolio of public toilets. These are located as stand-alone infrastructure within parks and reserves as well as often being integrated with other infrastructure such as parks, libraries, sportsgrounds, community halls and other facilities.

The majority of facilities are aging and, while functional for basic use, often do not meet the current and changing needs and expectations of many users. This poses some challenges for Council. A Draft BVSC Public Toilets Strategy has been developed to give a broad overview of the current situation and provide guidance on measures to manage challenges in provision, inclusions and servicing of facilities. A copy of the Draft BVSC Public Toilets Strategy is attached to this report.

Background

Bega Valley Shire Council services a large, long area including a number of towns and small villages. A small population over a large area along with high visitor numbers over a relatively short, peak holiday period makes balancing provision and service levels within available budgets a challenge.

The Draft Strategy document includes an Aim Statement “To provide well maintained, appropriately located, suitably provisioned and accessible public toilets to residents and visitors to the Bega Valley Shire.”

The document then outlines goals, objectives, and actions that when applied progressively will collectively work toward the aim of the strategy.

These guidelines are intended to assist with meeting the following core objectives:

· Equity of access and suitability for needs

· Safety of users and those maintaining them

· Appearance, sustainability and asset management

· Ease and efficiency of maintenance

· Providing useful and available information to the community

In meeting these core objectives new and renovated buildings are required to comply with legislation such as the National Construction Code of Australia and relevant Australian standards.

Crime Prevention Through Environmental Design (CPTED) principles are an important reference and inclusion in the Draft Strategy. These measures improve visibility and access to facilities and generally increase levels of use and passive surveillance. By doing this, the risks often associated with anti-social behaviour can be reduced.

The Draft Strategy does not set out specific designs or inclusions by facility or site. It provides broad direction and guidance on important elements to be considered and balanced in provision, design, inclusions, servicing and cost. The requirements, limitations and circumstances of each site and project will need to be assessed on their merits as projects for redevelopment of facilities develop.

Community Engagement

Consultation undertaken

Over the past four years there has been community consultation and notification on two key public toilet projects located at Pambula Rivermouth and Bruce Steer Pool in Bermagui. The design of these facilities applied the approaches included in the Draft Strategy. There was engagement with and feedback from the community on both projects. In noting the broader challenges of public amenity provision, the designs for these sites were adopted by Council. Pambula Rivermouth amenities were constructed in 2016 and have proven to be a good example of design and provision based on ‘typical’ use at a site that can get very high visitor numbers during the summer holiday season. There have been no complaints received related to the number of facilities. While there can occasionally be some wait times during busy periods provision is adequate.

Notifications Planned

Once adopted the BVSC Public Toilets Strategy will be placed on BVSC website and used as a reference to provide guidance, as projects develop, on a case by case basis.

Council consideration of input

There was an earlier workshop held with Councillors in March 2018. This provided an overview of challenges and key considerations for development of a strategy. Councillors provided direction to develop a broad strategy for addressing key challenges, noting that specifics for each site will be considered as asset renewals become due.

Financial and resource considerations

Public toilets come at a cost to build and are also service and maintenance intensive structures that represent significant capital investment, and ongoing operating expenses. On average it costs about $13,000 to clean and maintain a typical public toilet building each year. The cost of a new building is largely related to the size of the building and provision of facilities within the facility. Costs can range from $80,000 to over $200,000.

Councils’ annual budget for operations and maintenance of public toilets is approximately $770,000. Capital costs will vary year to year pending the asset renewals schedule and priorities however, based on the number of facilities (51 in parks & reserves) and a 50yr useful life for structure and a 25yr useful life for fit outs, an average of $151,000 pa should be accounted for asset renewals. (Note: sportsgrounds, pools and halls are typically restricted access facilities. Renewals are included in their relevant asset categories).

Like other high service assets, the operations and maintenance costs of a public toilet over its lifecycle is much greater than the capital cost to build the asset. This reflects the importance of the facilities being the right scale to be fit for purpose for their typical use. While over provision will cost more in terms of initial build costs, it will cost much more in additional operations and maintenance costs over the life of the facility.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The following were included in the 2019/20 Operational Plan.

· 1: Active and Healthy Communities

§ 1.2: We are an active, healthy community with access to good quality recreation and sporting facilities, and medical health care

§ 1.2.9: Construct and maintain public toilets - Maintain public toilets to agreed service levels

§ 1.2.10: Plan and manage public toilets- Develop and implement a Public Amenities Management Plan

Asset Management

A small population over a large area along with high visitor numbers over a relatively short, peak holiday period makes balancing provision and service levels of public toilets within available budgets a challenge. These factors have resulted in a high provision of facilities for a relatively low population, and with this comes asset management challenges to service and renew these facilities.

Being aware of these challenges and developing a broad policy to give guidance in balancing provision, facility inclusions, needs and expectations and costs will help greatly in meeting the asset management challenges.

Economic

Provision of well-planned and designed assets can help with provision of what are considered base fundamental service providing facilities which can relate closely to visitor experience.

Options

While provision of public toilets is an important function of local government it does come with challenges. These differ between different Councils. For BVSC the principle challenges relate to a high provision for a relatively low population (in many cases due to the size and nature of the small towns and villages shire) and the aging of many of the facilities.

Options to Council include:

1. Adopting a Strategy to provide broad guidance and direction on meeting the challenges outlined above and current expectations.

2. Do nothing and retain the current situation and case by case asset renewal approach.

Attachments

1 ⇩. 2019.11.06 Attachment November 2019 Draft Toilet Strategy

Council 6 November 2019

Item 11.3

11.3. EOI 61/19 Occupation and management of the Bega Indoor Sports Stadium and Old Bega Race Course

This report details the results of the Expression of Interest (EOI 61/19) process recently carried out for the occupation and management of the Bega Indoor Sports Stadium and Old Bega Race Course.

Director Assets and Operations

Officer’s Recommendation

1. That Council receive and note this report and Confidential Report attached.

2. That Council note the Expression of Interest (EOI 61/19) process carried out for the occupation and management of the Bega Indoor Sports Stadium and Old Bega Race Course.

3. That Council consider the recommendation as detailed in the attached Confidential Report.

4. That Council authorise the General Manager and Mayor to enter into negotiations in order to execute the necessary documentation to provide tenure to the successful applicant.

5. That Council authorise the General Manager and Mayor to enter into negotiations with the second applicant, should the successful applicant decide not to accept Council’s conditions, in relation to lease responsibilities.

Executive Summary

The current licence for the occupation and management of the Bega Indoor Sports Stadium is due to expire on 31 December 2019 and in keeping with our good governance processes, Council officers carried out an open and transparent Expression of Interest (EOI 61/19) seeking suitably qualified commercial entities, incorporated community organisations and interested parties for the future occupation and management of the Bega Indoor Sports Stadium and the Old Bega Race Course site following expiration of the current licence agreement.

This report details the results of the EOI process conducted between 23 August 2019 and 25 September 2019 and seeks Council’s approval to enter into a formal tenure arrangement with the successful applicant.

Background

The Bega Indoor Sports Stadium building is located on Lot 13 Section 33 DP 758076, being Council owned community land categorised as ‘Sportsground’. The building is currently occupied by fLiNG Physical Theatre Incorporated via formal Council Resolution on 23 September 2015 (copy attached). Following Council’s Resolution, a formal licence agreement was entered into with fLiNG Physical Theatre Incorporated on 18 March 2016 for a period of two years. The licence agreement included an option to renew for a further one year period, which expired on 17 March 2019. Due to the planning underway for the Bega Indoor Sports Stadium a further short term extension was offered to the current licensee until 31 December 2019.

The Old Bega Race Course site located on Lot 3200 DP 1036584, being Council owned community land categorised as ‘General Community Use’, and provides a wealth of recreational and cultural experience possibilities for Bega and the surrounding communities. It is a venue that has in the past been host to many community activities and events and the Plan of Management for the site outlines the potential to continue to host community activities and events, as well as provide a suitable space for new community endeavours to be undertaken. The site is currently managed by Council and it was seen as an advantage that the same entity would be interested in occupying and managing both sites. Council advertised that it would consider submissions for the occupation and management of the two sites or each site individually. No submissions were received for the occupation and management of the Old Bega Race Course site.

The EOI 61/19 process was conducted between 23 August 2019 and 25 September 2019. The EOI document was available on Councils’ e-Tendering portal. A total of three (2) EOIs were received and evaluated against the set criteria by a Tender Evaluation Panel consisting of three members. Both of the submissions received were considered conforming and are attached as Confidential Attachments for the information of Councillors.

Options

The options available to Council are:

1. Accept the recommendation provided by Council officers in the attached Report and resolve accordingly.

2. Decline to accept the EOI submissions received and advise submitters of Council’s decision.

3. Maintain vacant possession of the property for Council purposes. Note, this option will require the identification of funds to undertake necessary planning for the use of the building and ongoing maintenance and operational budgets.

4. Other options, as raised and resolved by Councillors.

Community Engagement

Consultation undertaken

Council officers completed an EOI process via public tender between 23 August 2019 and 25 September 2019. The tender was available on the e-Tendering portal and publicly advertised on Council’s website and Facebook page.

Consultation Planned

Council officers will liaise with third party applicants who submitted EOI submissions to advise Council’s decision and formalise occupation and management of the premises prior to the expiry of the current licence agreement.

Financial and resource considerations

Council’s Management of Leases and Licenses Procedure provides that:

· All lessees/licensees shall be responsible for the payment of all outgoings on the property; including (but not limited to): Council rates and charges (if applicable); land tax; water; electricity; gas; telephone; and any other operating costs associated with their respective activities.

Council officer time has been required to conduct the EOI process as well as ongoing management of a licence agreement during its term.

An updated market rental assessment will need to be commissioned by Council to determine a rental figure prior to entering into any new tenure arrangement for the site.

Legal /Policy

A licence is a contractual agreement that grants the licensee a personal right to occupy and use the premises for a particular purpose. It does not grant exclusive possession of the premises, as is the case with a lease, and may permit the premises to be used by other persons.

The purpose of the licence must also be compatible with the classification, plan of management and permitted use under the Local Environmental Plan.

In accordance with Council’s Management of Leases and Licenses Procedure tenure may be granted by:

· Invitations for expressions of interest.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

All of the EOI’s received were evaluated based on the following criteria:

ECONOMIC ACTIVITY – 20%:

Demonstrates how the activity will enhance the enjoyment for reserve and facility users. (6.67%)

Demonstrates how the activity will generate local economic activity and support for local community groups businesses. (6.67%)

Demonstrates how the activity will attract external visitation to the area. (6.67%)

B2. BENEFITS TO THE COMMUNITY – 30%:

Demonstrates what the level of community participation will be. (10%)

Demonstrates what other benefits the community will receive from this activity. (10%)

Develops community facilities and programs which provide space and opportunities for the community to purse recreation, cultural, community and social interest. (10%)

B3. EXPERIENCE & QUALIFICATIONS – 30%:

Demonstrated previous experience in the proposed activity. (15%)

Evidence of appropriate accreditations and/or qualifications supplied. (15%)

B4. SUSTAINABILITY – 20%:

Is the activity self-sustaining? (10%)

If not, how likely is it that the activity will continue without ongoing external support? (10%)

Economic

Two of the proposals received provide a level of economic activity or benefit to Council and the community both of which had similar proposed uses.

Risk

There are no adverse risks in allowing the building to be occupied as long as the use is authorised by way of a formal tenure arrangement which contains appropriate indemnity and insurance clauses.

Social / Cultural

As a regular used community facility, ensuring a balance between use of the facility by the operator and its reasonable availability for use by the community is imperative. Currently the licensee ensures use of the facility by sporting groups and schools for various weekly programs and competitions and this will remain a requirement for any new tenure agreement put in place.

Attachments

1 ⇩. Bega Indoor Sports Stadium Licence Council report dated 23 September 2015

2 . Confidential report in relation to EOI 61/19 occupation and management of Bega Indoor Sports Stadium and Old Bega Race Course (Confidential - As this attachment contains information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business and commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret as per Section 10A(2)(c) and (d) of the Local Government Act 1993.

3 . EOI 61/19 Occupation and management of the Bega Indoor Sports Stadium and Old Bega Race Course submission 1 (Confidential - As this attachment contains information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business and commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret as per Section 10A(2)(c) and (d) of the Local Government Act 1993.

4 . EOI 61/19 Occupation and management of the Bega Indoor Sports Stadium and Old Bega Race Course submission 2 (Confidential - As this attachment contains information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business and commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret as per Section 10A(2)(c) and (d) of the Local Government Act 1993.

Although the above relates more explicitly to the discussion of closed business, it also forms part of the basis of justification as to why information relied upon in informing the public decisions made by Council are kept confidential. To consider this confidential material in open Council would be, on balance, contrary to the public interest (as defined in Section 14 of Government Information Public Access (GIPA) Act 2009) as it would potentially disclose private business information provided by tenderers in a confidential tender process and would also impact Council’s position in relation to its consideration, therefore impacting the tender process. This meets the requirements of Sect 10 D of the Local Government Act 1993 if Council were to close the meeting to discuss the details of individual tenderers.

Council 6 November 2019

Item 11.4

11.4. BVSC Contracted Beach Lifeguard Services

Over the past several years the Tathra Chamber of Commerce has made approaches to Council to contribute to funding for the extension of BVSC Summer Beach Lifeguard services at Tathra. This report provides a summary of background information on provision and funding of summer beach lifeguard services provided by Council at Tathra and across the Shire and recommends Council funded services continue to be based on a risk management approach.

Director Assets and Operations

Officer’s Recommendation

1. That Council continue to apply a risk management approach to utilise available BVSC funding for provision of Summer Beach Lifeguard Services based on external reports and advice from professional service providers.

2. That Council acknowledge the efforts of the Tathra Chamber of Commerce support them in their efforts to externally fund the Tathra February Lifeguard Services.

3. That Council continue to assist in the provision of additional lifeguard services through administration of a variation to the Contract for Provision of Beach Lifeguard Services.

Executive Summary

The professional services provided by Council through specialist contractors complement the volunteer surf lifesaving clubs by providing services on weekdays at surf club sites and seven days at non-surf club locations during the summer school holidays. This paid service is funded through a Special Rate Variation (SRV), whereby the provision is determined by the established levels of service, available funding, and a risk management approach.

For several years Tathra has received a paid lifeguard service that has extended from the January School Holidays through February. Funding for this additional service had been provided through a range of means, most recently being provided by Australian Lifeguard Services (contract lifeguard service provider) at no cost as support to the community following the 2018 bushfires.

With no ongoing funding source available for the extended service Council has been approached by the Tathra Chamber of Commerce to consider options to provide an ongoing extended Beach Lifeguard service to the Tathra community.

Background

Following a meeting between Council representatives and Tathra Chamber of Commerce earlier in the year staff were asked to provide a report to Council that includes the following:

· Statistics from the most recent lifeguard season as well as prior seasons, where information is readily available, that incorporates cost of services, paid services provided, volunteer services provided, number of rescues, number of beach visitations at patrolled sites across the shire

· Recommendations on distribution of services based on feedback from service providers (both volunteer and paid)

· Cost of additional services including continuation of services throughout Tathra in February as well as prioritised recommendations from service providers

· Funding options to facilitate any recommended additional services outside those currently funded.

Beach Lifeguard services within the Bega Valley are delivered through Volunteer Surf Lifesaving Clubs at Bermagui, Tathra and Pambula Beach as part of the NSW Far South Coast Branch and through a Professional Lifeguard Service Provider, Australian Lifeguard Service (ALS). The clubs provide services at their respective locations on weekends and public holidays from the October School Holidays through to the Easter School Holidays/Anzac Day (April), as well as an emergency call out service throughout the year.

The professional services provided by Council through specialist contractors complement the surf lifesaving clubs by providing services on weekdays and seven days at non-surf club locations during the summer school holidays.

For a number of years, the Tathra Chamber of Commerce has made requests for the contracted lifeguard services at Tathra to be extended through February. For several years the contracted summer holidays service has been extended through the month of February. Council has administered and supervised the additional services as a variation to the Council Summer Lifeguard Services Contract. Funding for this additional service has been provided through a range of sources outlined below:

· February 2015 Funding by local businesses through the Tathra Chamber of Commerce

· February 2016 Dividend from Council investment in Southern Phones and funding from local businesses through the Tathra Chamber of Commerce

· February 2017 Funding by local businesses through the Tathra Chamber of Commerce

· February 2018 Funding by local businesses through the Tathra Chamber of Commerce

· February 2019 Australian Lifeguard Services sponsoring at zero cost to community following the 2018 Tathra bushfires.

With no ongoing funding source identified the Tathra Chamber of Commerce has approached Council to consider options to provide an ongoing extended February lifeguard service in Tathra. Options are outlined in the report below.

Issues

Legal /Policy

The Local Government Act 1993 and Local Government (General) Regulations 2005 applies in relation to procurement and management of services and asset by Council. Request for Tender (RFT 55/17 Provision of Beach Lifeguard Services) was developed and advertised to select a suitable service provider to deliver the services. Australian Lifeguard Services (ALS) were the successful tenderer. ALS are the professional arm of Surf Lifesaving NSW.

The Tathra February Lifeguard Service has been managed by Council as an extension of the existing contract and is conducted according to the same contract specification, irrespective of funding source.

Strategic

Beach Lifeguard Services are referred to in the Bega Valley Shire Council Community Strategic Plan (CSP) and adopted delivery programs and operational plans. This includes Community Strategic Plan Goal 7: Our Shire continues to be a vibrant, enjoyable, safe and affordable place to live.

Beach lifeguard services are an important service to the Bega Valley during the summer school holiday period. They provide supervised beach locations for residents and visitors during this period of peak use, during the most popular holiday period when water temperature and summer weather are favourable for beach use. The Table further below shows beach attendance statistics during the contracted periods for the past 5 years. (Volunteer patrol numbers are excluded)

Social / Cultural

With the largest stretch of coastline of any NSW local government area, there is no question of the importance of beaches to residents and visitors of the Shire. In particular this is evident through the visitation of the eight service locations during the summer school holiday period.

This service also supports the three volunteer surf lifesaving clubs who provide lifesaving services at Bermagui (Horseshoe Bay), Pambula Beach and Tathra on weekends and public holidays during the October to April volunteer patrol season.

Risk Management

Beach lifeguard services are fundamentally a risk management program that is in place to give options to locals and visitors to safely enjoy the popular beaches in the Shire, during the busiest time of year (summer school holidays) as opposed higher risk unsupervised locations. Lifeguard services help to minimise and control risks in the beach environment through risk assessment, public education, signage, provision of rescue equipment and emergency response at identified service locations.

In 2014, the NSW Government funded ‘CoastSafe’ to undertake Coastal Public Safety Risk Assessments. This was a state-wide drowning prevention project that developed a coastal public safety risk assessment and treatment plan specific to each NSW LGA. There was a CoastSafe report provided on the Bega Valley Local Government Area. This is an important reference and provides direction on allocation of resources and location of services based on a Shire wide risk management approach. Based on our service provision and treatment options recommendations for increased services for the Bega Valley were:

Recommendations: CoastSafe ‘Coastal Public Safety Risk Assessments – Bega Valley LGA 2014’

· 1.22 Explore means to fund additional guard at Bar Beach-

- Implemented through available SRV funding and RFT 55/17 Contract Specification.

· 1.23 Explore means to fund lifeguard services within Bega Valley to cover all summer school holiday periods-

- Partially implemented based on available SRV funding at Bermagui, Tathra and Pambula, with remaining sites commencing Boxing Day on 26^th December (established service level)

· 1.24 Explore means to fund lifeguard services at non-surf club sites (Saturday, Sunday, and public holidays until end of February and cover Easter Holiday Weekend)

- Cannot be met through existing funding.

· 1.25 Explore means to fund mid-week patrols at Tathra and Pambula from the start of December to end of February.

- Cannot be met through existing funding. As in the case of the Tathra example, the February extension accounts for 27% of the Tathra School Holiday beach attendance on average.

· 1.26/277 Two other options related to Branch and Surf Lifesaving Clubs specifically (not Council)

Council has been advised by ALS that the NSW Government will be funding a similar program again over the next four years, however the roll out of this program and LGA priority areas are yet to be determined.

If Council were to fund an extension of the Summer Beach Lifeguard Program a key focus of should be use of a risk management approach. The tables below present statistics on the number of rescues performed during the contracted services. Bar Beach consistently has the highest number of rescues over the last five seasons. Rescue numbers are varying each season across the service locations.

Beach Attendance Figures – BVSC Beach Lifeguard Services.

ALS Season Statistics
Year	2014/15	2015/16	2016/17	2017/18	2018/19	Mean
Camel Rock	12,843	11,489	8,323	8,855	15,186	11,339
Bermagui	12,690	14,844	14,956	11,657	12,230	13,275
Tathra	23,959	21,431	20,549	30,411	21,489	23,568
Short Point (M)	17,226	19,179	16,111	17,217	11,684	16,283
Bar Beach (M)	15,052	21,173	19,370	25,399	20,896	20,378
Main Beach (M)	39,761	30,266	35,403	33,830	47,659	37,384
Pambula	26,835	26,083	21,181	29,991	19,639	24,746
Eden	9,922	11,047	10,049	11,400	12,265	10,937
Total	158,288	155,512	145,942	168,760	161,048	157,910

Beach Attendance Figures - February Tathra extension.

Tathra Extension Statistics
Year	2014/15	2015/16	2016/17	2017/18	2018/19	Mean
Attendance	7,069	9,123	6,203	5,385	4,006	6,357

BVSC Beach Lifeguard Services – Rescues Performed

ALS Season Statistics- Rescues
Year	2014/15	2015/16	2016/17	2017/18	2018/19	*Mean pa*	*Rescue / Mean Attendance*
Camel Rock	20	20	4	5	3	*10.4*	*1/1090*
Bermagui	0	0	1	1	4	*1.2*	*1/11063*
Tathra	15	26	14	34	58	*29.4*	*1/802*
Short Point (M)	7	30	7	40	15	*19.8*	*1/822*
Bar Beach (M)	42	95	82	112	88	*83.8*	*1/234*
Main Beach (M)	9	18	21	5	0	*10.6*	*1/3572*
Pambula	12	14	6	2	7	*11.4*	*1/2171*
Eden	0	2	2	0	0	*0.8*	*1/13671*
Total	105	205	137	199	175	*By Year 164.2*	*1/962*

Economic

Fundamentally the provision of summer beach lifeguards is a public safety service and a risk management approach and should be the primary basis for provision of services. There is also no doubt the services also support tourism, and provide an economic benefit to tourism operators. This has been a consideration in developing a balance of service location across the Shire.

The extension of the Tathra service through February may provide some economic benefit primarily to tourist operators through providing the only weekday supervised beach location south of Mollymook for residents and visitors to attend through February. However, the proportion of the service use by visitors versus residents in not quantified within the reporting. The economic benefit for Tathra businesses generated by the service extension will vary depending on attendance of visitors / residents. It is also important to consider whether these economic benefits are more localised to Tathra or beneficial to the wider Bega Valley.

Community Engagement and/or Communications

The summer beach lifeguard program is an established service, delivered by ALS on behalf of Council. There is a Special Rate Variation (SRV) allocated to fund the service and provision is aligned with the established levels of service and the funding amount. There is awareness in the broader community of the program. ALS has also established a Facebook page to provide up to date information to the community on beach conditions, beach closures and important water safety information.

Financial and resource considerations

Beach lifeguard services are funded through a SRV. Each year the management and services provided need to meet the available SRV funding. Based on the current SRV funding model, the available funds for the provision of beach lifeguard services over the next three seasons are outlined in the table below.

Funding source		Amount- 2019/20	Amount- 2020/21	Amount- 2021/22
SRV funding amount	$	194,897	200,715	207,710
Additional Funding Identified	$	0	0	0

In 2017 Council engaged ALS through a public tender to provide lifeguard services for a 3-year contract period. In that RFT the services specification and levels of service were extended in line with the CoastSafe report and ALS recommendations. The price submitted was greater than the allocated annual SRV amount for this service provision. This was directly related to the increase in the service specifications.

In consideration of the RFT report and recommendations Council confirmed that the summer lifeguard service is to be met within the financial parameters of the SRV. As such services are aligned to meet the available funding with some extension of services for pre-Christmas holidays now included. This changes each year dependent on number of holiday days before Christmas each year. For the coming 2019/20 season ALS have provided a pricing of $192,496 ex GST. This will provide services commencing at Bermagui, Tathra, Pambula and Eden on Monday 23 December, and Camel Rock, Short Point, Bar Beach and Short Point on 26 December (Boxing Day)

ALS was also requested to provide a quote for the upcoming season for a February Extension (28th January to 28th February) at Tathra (5-day site) and, for comparison, Bar Beach (example 7-day site and highest recue / attendance site). Costs are provided below:

· Tathra Extension- $11,013.64 ex GST (or $2,202.728 ex GST per week)

· Bar Beach Extension - $15,872.00 ex GST. (or $3,174.4 ex GST per week)

Currently, based on the available funding there is not capacity to provide any additional services recommended in the Coastsafe report or by ALS; or additional services such as the February extensions quoted above.

Staff have investigated additional funding through the NSW Water Safety Fund however submissions have been unsuccessful as Local Councils are ineligible to apply. An eligible organisation can apply and partner with Council to deliver. Like all grants, the project would also need to meet the Water Safety Fund grant criteria and priorities for the relevant year applied.

Options

Option 1 Special Rate Variation:

This is the current source of funding for the established holiday service provision and has been in place since 2008/09. The base level established service provision is from the 26^th of December (Boxing Day) through to the end of the school holidays. Where there are available funds, services are extended to the school holiday period before Boxing Day as much as possible. This has been coordinated and delivered over the past four seasons. Any increase to service provision will require additional funding to the existing SRV.

Option 2 General Fund:

There is pressure on Council’s General Fund. Any allocation of resources would result in reduction in service levels elsewhere due to the need to reduce funding as an offset. This decision would need to be analysed in terms of the basis and reason for redirecting funding as well as understanding the relative value and the impact of the reallocation. In the past additional General Fund revenue gained through the Southern Phone dividend has been used to contribute to the additional February lifeguard services at Tathra.

Option 3 Grants

Services would be dependent on availability, eligibility and success of grant applications. Previous submissions under the NSW Water Safety Fund have been unsuccessful as Councils are ineligible to apply. Grants may provide a source of funding for one or two seasons, however they are unlikely to provide a regular and ongoing source of funding.

Option 4 Sponsorship

This option could (and has been) supported by local chambers of commerce, tourism organisations and potential corporate sponsors through coordination and administration of services as a variation to the Council summer beach lifeguard contract. Services would be conditional on availability of sponsorship which may not secure long-term funding for the program. Effectively this is how the extension is currently funded. The current request, from the Tathra Chamber of Commerce, demonstrates the challenge to secure funding in the long term. Considering there is an existing funding stream (SRV) based on service priority (summer school holidays), sponsors may reasonably seek to direct the services they are funding.

Conclusion

There is no question about the importance and value of beach lifeguard services, whether professional or volunteer based. Beach lifeguard services are fundamentally a risk management program that is in place to give options to locals and visitors to safely enjoy the popular beaches in the Shire. With current resources limited to the available SRV funding amount, any changes to the service provision would need to be met through external funding sources or the reallocation of Council resources.

The current Council contracted professional Beach Lifeguard Service is offered during the summer school holiday period where visitor numbers are highest, weather conditions are favourable, and people have more time to visit the beach. This provides a service provision throughout the weekdays in peak season (summer school holidays) for the surf club locations, and also in the communities and at locations that do not have volunteer lifesaving services.

The initiative of the Tathra Chamber of Commerce to look at opportunities to extend the summer beach lifeguard program at Tathra into February should be acknowledged. However, noting the risk management approach to provision of beach lifeguard services and the limited available funding currently allocated for this service (SRV), it is unlikely Council is in a position to fund the Tathra February extension.

If funding for additional Summer Beach Lifeguard services does become available, it is recommended that services be directed by the CoastSafe Coastal Safety Risk Assessments and ALS recommendations unless there is targeted sponsorship funding.

Attachments

Nil

Council 6 November 2019

Item 13.1

13.1. Southern Phone share acquisition offer

Southern Phone has received an offer from AGL Energy Limited to acquire all shares in Southern Phone Company Limited.

General Manager

Officer’s Recommendation

1. That Bega Valley Shire Council formally resolve to approve the sale of the Bega Valley Shire Council Southern Phone shares to AGL and provide authority to the General Manager to sign the required Power of Attorney

2. That Bega Valley Shire Council vote in favour of a special resolution to update the Company’s constitution at the 2 December 2019 Extraordinary General Meeting.

3. That Council establish a Southern Phone Reserve and deposit the return from the share sale into this Reserve to fund Council’s contribution to Festivals, Events and Community Donations annually.

Executive SummaryBega Valley Shire Council was a founding shareholder in the establishment of Southern Phone. The project, led by Eurobodalla Shire Council, grew to be owned by 35 regional Councils and provide services across the country. Southern Phone has received a proposal from AGL Energy (AGL) and entered into a conditional agreement under which AGL is proposing to acquire 100% of the company.

Council’s originally held two shares with a price of $1.00 each and is now determined to hold one share equating to the original two shares. Over the period since the company’s establishment Council has received dividend payments which have been used for community projects and most recently supported Council’s community events, festivals and community donations program. The proposed return to Bega Valley Shire Council is a cash offer of $785,714.

As a shareholder Council must consider and resolve their position on the offer by 29 November, prior the Extraordinary General Meeting of Southern Phone on 2 December 2019.

The investment in the formation of Southern Phone was a prudent step taken by Council in 2001/02 and demonstrates the outcomes that local government, working together, can achieve. The substantial return on this investment ($998,718 in dividends since 2007 and this offer) has clearly demonstrated that the original concept was sound, and of benefit to local government.

Background

Southern Phone Company is one of the largest providers of fixed line, mobile and Internet communications services in regional Australia.

Formed in 2002 after receiving $4.77 million in funding from the Australian Government’s Networking the Nation scheme. The vision of the company was to deliver more affordable telecommunications services to regional communities and to share the success with those communities. Under the Southern Phone Constitution, only Australian Local Government Councils can hold shares in Southern Phone Company Ltd. Dividends are paid to Local Government shareholders and used for the benefit of their local communities.

The Southern Phone Board receives an offer from AGL to acquire 100% of the company. This cash offer of $27.5 million would deliver a return of $787,714 to each of the 35 Council owners of the Company. The Southern Phone brand and products and existing business operations and telecommunications services to the Company’s 100,000 customers will be maintained. The Southern Phone staff team will also be retained.

The Board has made this decision based on independent advice following extensive negotiations following a strategic review in mid-2019 and David Joss, Managing Director has stated publicly “that the offer represents fair value for shareholders and provides a great outcome for the company, its customers and the regional communities we serve”.

The Southern Phone Board has unanimously recommended to Councils that they accept the offer.

The Shareholder Briefing is attached to this report.

Options

1. That Council accept the AGL cash offer for the acquisition of 100% of the shares in Southern Phones.

2. That Council does not accept the AGL share offer.

Community Engagement

Consultation undertaken

The share offer was widely publicised in the local media.

Financial and resource considerations

Bega Valley Shire Council has been a shareholder in Southern Phone since 2002. The dividends provided to Council have been distributed utilising a formula linked to the local take up of Southern Phone as a provider in the LGA.

Council has received significant dividends since 2007 ($998,718) and due to the uncertainty of the quantum annually have used the dividend to fund project work initially and, since 2013/14, to fund and support community initiatives. The past four years have seen the funds support Council’s program to fund community initiated festivals and events and donations.

The share price return on the offer is $785,714. It is also expected that any unexpended funds held by Southern Phone at the conclusion of winding up the company will also be allocated via the existing formula to the shareholder Councils..

If Council resolve to accept the offer it is strongly recommended that the funds returned be placed in a Southern Phone Reserve and be used to annually support an allocation of $100,000 for the next eight years. Council would then annually allocate the funding.

Legal /Policy

Southern Phone Company Limited was registered under the Corporations Act in 2001. Council’s share certificate noting its two $1.00 shares was issued on 9 December 2002.

In order for this offer to progress each shareholder is required to:

· Vote in favour of a special resolution to update the Company’s constitution, including to permit non-council shareholders of the Company;

· Vote at the Extraordinary General Meeting to support the constitutional changes; and

· Resolve, formally, to sell the Bega Valley Shire Council shares to AGL by signing a power of attorney to be received by Southern Phone no later than 5.00pm on 29 November 2019.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The acceptance of the share offer would provide funding for community events and activities which aligns with supporting a number of the Council’s adopted forward plans supporting outcomes for the community. Projects funded under any proposed scheme would be assessed against criteria signed off by and supported by the Council.

Attachments

1 ⇩. Shareholder Briefing

Council 6 November 2019

Item 13.2

13.2. Quarterly Budget Review Statement - 30 September 2019

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

General Manager

Officer’s Recommendation

1. That Council receive and note the September 2019 Quarterly Budget Review.

2. That the budget recommendations detailed within the September quarterly budget review be adopted.

Executive Summary

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 is presented in a summary format which shows Council’s income and expenses by type and by activity. The Capital Budget Review Statement (CBRS) is also prepared by type followed by variance details. It is the intent of this report to provide information to the users of the QBRS report, to illustrate the financial performance of Council as a whole and for each activity of Council.

Council officers 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, officers can provide answers to those questions.

Financial and resource considerations

Council’s budgeted surplus has decreased by $16,029,871. This is due mainly to grants and contributions for Capital projects, totalling $13,816,289 that was originally budgeted for in the 19/20 year having either been received in the 18/19 year or having been phased in the coming years in line with now agreed funding deeds.

Grants and Contributions for operations has also decreased by $5,585,213, the main change is the receipt of the Financial Assistance Grant advanced payment of $3,683,524, these funds upon receipt in 18/19 were recorded as reserves. Additionally, an amount of $1,774,580 was found to be recorded twice in the draft budget and has been corrected.

Council staff have also completed a thorough review of employee costs and overheads and has reduced these by $1,901,884.

Council continues to develop plans to better account for its assets, by ensuring that when works are completed, they are capitalised and depreciated appropriately. Work is underway to mature Council’s Asset Management Systems to provide for more accurate capturing and monitoring of assets, particularly in the areas of Council employee costs being appropriately captured against capital projects. As a result, it is anticipated Council will be in a better position in the future to have more real time information to accurately forecast its maintenance and renewal costs.

Council had cash and investments of $80,459,810 at 30 June 2019, the projected cash figure at the 30 June 2020 is expected to be $59,788,380. Whilst the difference is significant it is important to note that the 30 June 2019 figure is inflated by capital and operational grant funds that were placed in reserves and will be used to fund projects in future budgets.

Legal /Policy

In accordance with Regulation 203(1) of the Local Government (General) Regulation 2005, the Responsible Accounting Officer must prepare and submit to the Council a Budget Review Statement after the end of each quarter.

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.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Council’s 2017–2021 Delivery Program and 2019-2020 Operational Plan provides the Financial Estimates 2017–2021 which includes the Budget for 2019-20.

Council will need to be mindful in reviewing the Long-Term Financial Plan, that it is not likely to have the same level of external grant funding into the future, and that an expansion of the current asset base will put pressure on future budgets through increased maintenance and depreciation costs.

Given the issues highlighted by Council in achieving its Asset Management model, future gains or surpluses need to be placed into appropriate reserves to provide coverage for future liabilities.

Attachments

1 ⇩. Quarterly Budget Review Statement - September 2019

Council	6 November 2019
*Item 6.1 - Attachment 1*	Local Government NSW "At the Crossroads" brochure

Council	6 November 2019
*Item 11.1 - Attachment 1*	Draft Agreement for the supply of recycled water from Tura Beach STP for use by Tura Beach Country Club

Council	6 November 2019
*Item 11.2 - Attachment 1*	2019.11.06 Attachment November 2019 Draft Toilet Strategy

Council	6 November 2019
*Item 11.3 - Attachment 1*	Bega Indoor Sports Stadium Licence Council report dated 23 September 2015

Council	6 November 2019
*Item 13.1 - Attachment 1*	Shareholder Briefing

Council	6 November 2019
*Item 13.2 - Attachment 1*	Quarterly Budget Review Statement - September 2019

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 Public Forum – report by Mayor of deputations heard prior to the meeting

5 Petitions

6 Mayoral Minutes

7 Urgent Business

8 Staff Reports – Planning and Environment

9 Staff Reports – Community, Culture and Leisure

10 Staff Reports –Economic Development and Business Growth

11 Staff Reports – Infrastructure Waste and Water

12 Staff Reports – Governance and Strategy

13 Staff Reports – Finance

14 Councillor Reports

15 Rescission/alteration Motions

16 Notices of Motion

17 Questions with Notice

18 Confidential Business

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

Statement of Re-Commencement of Live Streaming

19 Noting of Resolutions from Closed Session

20 Declassification of reports considered previously in Closed Session

6.1. Recycling Campaign - Local Government NSW

Officer’s Recommendation

Background

Attachments

Council

6 November 2019

Staff Reports – Infrastructure Waste And Water

6 November 2019

11.1. Tura Beach Country Club tenure

Officer’s Recommendation

Attachments

Staff Reports – Finance

6 November 2019