Agenda of Council - 11 December 2019

Council 11 December 2019

Item 8.1

8.1. Exhibition of Draft Commercial Land Strategy

This report seeks a resolution of Council to publicly exhibit the draft Commercial Land Strategy.

Director Community Environment and Planning

Officer’s Recommendation

1. That Council resolve to publicly exhibit the draft Commercial Land Strategy (Attachment 1) for not less than 42 days.

2. That Council officers prepare a further report to Council following conclusion of the exhibition period.

Executive Summary

A draft Commercial Land Strategy has been prepared by Zenith Town Planning, on behalf of Council, in collaboration with business and community stakeholders, and Council staff. The draft Strategy seeks to address the future need for commercial land in Bega Valley Shire and provides a vision and framework for the development of the commercial centres over the next 20 years.

This report recommends that the draft Strategy be publicly exhibited to seek additional community feedback, and a further report be submitted to Council following exhibition summarising feedback and any recommended changes to the draft Strategy. Once adopted, this Strategy will replace the Bega Valley Shire Commercial Centres Strategy adopted in 2006 and inform the Bega Valley Shire Local Strategic Planning Statement 2040.

Background

In August 2019 Council initiated a review of its commercial areas to address the future need for commercial land in Bega Valley Shire and provide a vision and framework for the development of the Shire’s commercial centres over the next 20 years. Zenith Town Planning was engaged to prepare a draft Commercial Land Strategy, on behalf of Council.

The draft Strategy aims to contribute to achieving the community’s vision outlined in the Bega Valley Shire Community Strategic Plan 2040 and the South East and Tablelands Regional Plan 2036.

The draft Strategy examines existing and future population and industry characteristics, opportunities for industry growth, as well as commercial trends such as physical changes in commercial centres, changing technologies, and national and global economic factors, and identifies action that can be taken, by Council, to address these trends.

The draft Strategy establishes a commercial centres hierarchy for Bega Valley Shire to differentiate the role of each centre. It sets the direction for future development within these commercial centres based on their existing natural advantages, and includes recommendations for changes to land use zones, building heights, land use tables, and other planning controls to help support the viability of commercial space and promote economic development opportunities.

Options

During the stakeholder engagement, that informed the development of the draft Strategy, a range of ideas, views, visions, key concerns, and possible solutions were put forward by participants. The draft Strategy contains the consultant’s recommendations following consideration of the ideas raised.

Some of the alternative ideas that were put forward that are not included on the draft Strategy include whether Merimbula and Tura Beach should be considered as one centre or as two separate centres, consolidating existing commercial development along Andy Poole Drive in Tathra, and expanding commercial land in Bermagui through the application of a mixed use zone along Lamont Street from the corner of Bunga Street through to Carnago Street (excluding the wetlands).

Council has the option to change any of the recommendations in the draft Strategy before it is publicly exhibited. However, it is recommended that Council resolve to place the draft Strategy (Attachment 1) on public exhibition. Council will then be able to consider the matters raised, in any submissions received during the exhibition period, as well as the matters raised in the previous paragraph, when the further report is presented to Council.

Community Engagement

Consultation undertaken

Community engagement for the draft Strategy was carried out in accordance with Council’s draft Community Engagement Strategy and Community Engagement and Communications Toolkit. The project was assessed to be Level 3 – Involve on the IAP2 spectrum. Council has worked directly with interested and affected parties to develop a draft Strategy that contains achievable actions in the context of relevant regulations and policy.

The draft Strategy is built on visioning work carried out by Council in the development of Bega Valley Community Strategic Plan 2040 and involved collaboration with staff from across Council, including strategic planning, water and sewer services, strategic assets, and economic development, and the consultants engaged to prepare the draft Residential Land Strategy (see separate report in this business paper).

A goal of the community engagement process was to develop the draft Strategy in partnership with stakeholders to create ownership of the process and encourage creative thinking and solutions. Stakeholders that were involved in the development of the draft Strategy included land owners, business owners, representatives of community groups, interested community members and Councillors.

Meetings were held with the Bega, Cobargo, Merimbula, Bermagui, Pambula and Eden business chambers in September and October 2019. Independently facilitated community workshops were held throughout August in Bega, Merimbula, Bermagui, Tathra, Pambula, Eden and Cobargo to discuss each commercial centre. A second community workshop followed in November to discuss the preliminary draft Strategy. Workshops with Councillors were held in October and November 2019.

Issues raised by stakeholders during the workshops and meetings, along with comments from the consultant who prepared the draft Strategy, form an attachment to the draft Strategy and were also used to inform character statements for the towns.

Consultation Planned

Formal public exhibition of the draft Strategy is proposed for a period of not less than six weeks. All individuals and groups that participated in the development of the draft Strategy will be notified directly and notices will be placed in the local newspaper, Council News and on Council’s social media channel. Hard copies of the draft Strategy will be placed in all Council libraries as well as locations such as village post offices in villages during the exhibition period.

During this period submissions can be lodged via email, letter and comments on the ‘Have your Say’ section of Council’s website.

Council consideration of input

This report recommends that Council place the draft Strategy on public exhibition. Following public exhibition, a further report will be submitted to Council summarising any submissions received during the exhibition period and recommending any amendments to the draft Strategy.

Financial and resource considerations

The project is included in the adopted 2019-2020 Operational Plan and is being funded through a one-off budget allocation from the General Fund.

Funding source		Amount
General Fund	$	43,000

Legal /Policy

Exhibiting the draft Strategy is consistent with Council’s obligations under the Local Government Act 1993 and Environmental Planning and Assessment Act 1979 to seek community input into strategic planning matters.

The draft Strategy has been prepared to provide a policy framework for the planning and development of the Shire’s commercial centres over the next 20 years and will inform the Bega Valley Shire Local Strategic Planning Statement 2040.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The draft Strategy addresses the following goals in the Bega Valley Community Strategic Plan 2040:

• Goal 3: Our economy is prosperous, diverse and supported by innovative and creative businesses.

• Goal 4: We have meaningful employment and learning opportunities for people in all stages in life.

• Goal 8: Our places retain their character and scale, development is well planned, and a range of goods and services are available within our Shire that meet local needs.

The draft Strategy also addresses the Goal 1 of the South East and Tablelands Regional Plan 2036 to create a connected and prosperous economy and the direction to promote business activities in urban centres. It aims to achieve the following actions from the plan:

• Action 12.3: Reinforce the role and function of centres as the primary places for commerce, retail, social activity and regional services

• Action 12.4: Focus future commercial and retail activity in existing commercial centres

The following projects, which contribute to improving our commercial centres, are included in the draft 2020-2021 Operational Plan:

• Develop a new Economic Development Strategy

• Prepare a revised CBD Landscape Masterplan for Bermagui

• Prepare a place making Area Plan for Merimbula

• Conduct Merimbula Traffic Study to inform place-based Area Plan

• Install permanent traffic counters for future Merimbula Traffic Study data gathering

Environmental / Sustainability

There are negligible direct environmental sustainability implications of exhibiting the draft Strategy.

The draft Strategy addresses the resilience outcomes of a more diverse and thriving economy including economic sustainability, sustainable development and sustainable employment opportunities.

Economic

The draft Strategy aims to set the direction for future development within commercial centres and includes recommendations for changes to land use zones, building heights, land use tables and other planning controls to help revitalise commercial space and promote economic growth opportunities.

Exhibiting the draft Strategy provides an opportunity for those with a view on how best to deliver economic prosperity to the town centres of the Bega Valley to contribute to the strategic planning direction for those centres.

Implementation of the Strategy, once adopted, will help our economy become more resilient by encouraging diversity and employment generating opportunities.

Risk

Exhibiting strategic planning documents is core business for Council and does not introduce new organisational risks.

Implementation of this draft Strategy will help address the risk of our existing economic and employment base, which is dependent on a small number of industry sectors by providing opportunities for diversification of commercial activity.

Social / Cultural

One of the foundation principles of the draft Strategy is to adopt a partnership approach to economic growth which provides reliable incomes for the labour force, business opportunities for employers, and revenue to maintain services and infrastructure that supports the needs of the community.

Exhibiting the draft Strategy provides an opportunity for local people to provide feedback on whether they feel the document supports their social and cultural aspirations.

Implementation of the Strategy will help our community become more resilient by encouraging employment generating opportunities and helping create more vibrant and activated commercial centres which facilitate community connections, recreation and cultural activities.

Attachments

1 ⇩. Draft Commercial Land Strategy

Council 11 December 2019

Item 8.2

8.2. 2019.330 Primary and Secondary Dwellings - Lot 9 Section 7 DP 943 - 96-98 Loftus Street, Bemboka

Director Community Environment and Planning

Applicant	K F Armitage
Owner	K F Armitage
Site	Lot 9 Section 7 DP 943 – 96-98 Loftus Street, Bemboka
Zone	RU5 Village
Site area	1466.7m²
Proposed development	Primary and Secondary Dwellings

Precis

The application is reported to Council as it seeks a variation to a development standard under Clause 4.6 of Bega Valley Local Environmental Plan 2013.

The variation requested is a reduction to the 2,000m² minimum lot size required for the erection of a dwelling in an unsewered residential area.

Officer’s Recommendation

That Council:

1. Assume the concurrence of the Secretary of the Department of Planning and Environment in accordance with Circular PS 18-003 and, pursuant to Clause 4.6 of Bega Valley Local Environmental Plan 2013, approve a variation to Clause 4.1A to allow the erection of a dwelling on Lot 9 Section 7 DP 943 – 96-98 Loftus Street, Bemboka.

2. Approve the development application subject to the proposed Conditions of Consent (Attachment 1).

Background

The lot was originally created as a subdivision of part of Portion 4 of a 320-acre property of R L Tooth Esq granted to F Tooth on 30 April 1869 described as Vol: 86 Folio: 246.

With the gazettal of Bega Valley Local Environmental Plan 2013 (BVLEP 2013), the requirements for the erection of a dwelling on an unsewered residential allotment changed to a minimum site area equal to or greater than 2,000m².

The lot is provided with a reticulated water supply but does not have access to the sewerage network.

Description of the proposal

This development application (DA) seeks approval to erect primary and secondary dwellings.

As part of the DA the applicant has requested a variation to Clause 4.1A of BVLEP 2013, which requires a minimum lot size of 2,000m²for the erection of a dwelling on an unsewered allotment in a RU5 Village zone. The subject allotment is 1466.74m², which is 26.6% below the minimum lot size specified in the clause.

The DA includes a detailed Statement of Environmental Effects, and justification for the variation to the development standard including the suitability of the site for a dwelling and capacity for on-site effluent disposal.

Description of the site

The development is proposed to be constructed on an irregular shaped lot with an area of 1466.74m². The land is a long elongated, vacant lot which falls from its property frontage (Loftus Street, part of the Snowy Mountains Highway) to its rear boundary. The land is void of any significant vegetation, with the exception of two mature eucalyptus trees located in the south-east corner of the property frontage.

The area is mostly characterised by a mixture of one and two storey dwellings of various architectural styles and age. In the immediate area there is also a hotel, shop (not currently trading) and local community hall.

Planning assessment

The proposal has been assessed in accordance with the Matters for Consideration under Section 4.15 (formerly Section 79C) of the Environmental Planning and Assessment Act 1979. Staff highlight the key issues associated with the proposal in this report for Council’s consideration.

A copy of the assessing officer’s Section 4.15 assessment is provided in Attachment 2.

Zoning

The land is zoned RU5 Village under BVLEP 2013 with a dwelling permitted with Development Consent.

The objectives of the zone are

· To provide for a range of land uses, services and facilities that are associated with a rural village

· To ensure that development maintains and protects the village character.

The erection of a dwelling on Lot 9 Section 7 DP 943 would be consistent with the residential land uses on adjoining lands and the village character of Bemboka.

BVLEP 2013 Clause 4.6 ‘Exemptions to development standards’

Clause 4.6 provides for relevant development standards, such as minimum lot size requirements in Clause 4.1A, to be varied. When considering the use of Clause 4.6 to vary a development standard the following applies:

“(1) The objectives of this clause are as follows:

(a) to provide an appropriate degree of flexibility in applying certain development standards to particular development,

(b) to achieve better outcomes for and from development by allowing flexibility in particular circumstances.

(2) Development Consent may, subject to this clause, be granted for development even though the development would contravene a development standard imposed by this or any other environmental planning instrument. However, this clause does not apply to a development standard that is expressly excluded from the operation of this clause.

(3) Development Consent must not be granted for development that contravenes a development standard unless the consent authority has considered a written request from the applicant that seeks to justify the contravention of the development standard by demonstrating:

(a) that compliance with the development standard is unreasonable or unnecessary in the circumstances of the case, and

(b) that there are sufficient environmental planning grounds to justify contravening the development standard

(4) Development Consent must not be granted for development that contravenes a development standard unless:

(a) the consent authority is satisfied that:

(i) the applicant’s written request has adequately addressed the matters required to be demonstrated by subclause (3), and

(ii) the proposed development will be in the public interest because it is consistent with the objectives of the particular standard and the objectives for development within the zone in which the development is proposed to be carried out, and

(b) the concurrence of the Secretary has been obtained.”

In accordance with the NSW Planning, Industry and Environment Planning Circular PS 18-003, Council has assumed concurrence of the Secretary, and can determine this variation to the minimum lot size requirement. As the variation sought is greater than 10%, Council officers do not have delegation to determine the DA and the matter must be reported to Council.

A written request seeking to vary the development standard was submitted with the DA and in support of the variation the following information was provided:

• The land is located within the village of Bemboka;

• The lot was created for the purpose of a dwelling house;

• The land is serviced with reticulated water and electricity is available; and

• The DA is supported with an effluent disposal report that demonstrates the site is capable of accommodating two dwellings, in total four-bedrooms, with up to eight residents, with a total output of 800 litres of wastewater per day.

Officer Comments

After reviewing the request for variation, it is considered the Applicant has provided sufficient information to demonstrate, in this instance, that compliance with the development standard would be unreasonable or unnecessary.

The subject land has stood as a separate lot since 1869 and, as such, has contributed to the established residential lot pattern/yield/density within the Bemboka township up until the present time and will continue to do so in perpetuity. Accordingly, it is considered that the application of Clause 4.1(3) in this instance would be unreasonable, as the objective of the development standard is achieved notwithstanding non-compliance with the lot size requirement of the standard.

The Applicant has adequately addressed the matters of Clause 4.6 (3) and has demonstrated the proposal is in the public interest, as it is consistent with the objectives of the RU5 Village Zone, consistent with the purpose for which the allotment was originally created and would be in keeping with the existing village character of Bemboka.

The current application is supported by a detailed on-site sewage management report, which demonstrates that the land has sufficient capacity to support on-site sewage management without compromising environmental integrity and/or Council’s requirements.

Additionally, the report calls for a higher standard of wastewater treatment (aerated waste water treatment and land application area) to that historically required (septic system) in the Bemboka township which, in the main, is characterised by many lots having lot areas less than 2000m².

Accordingly, it is considered that by requiring a higher standard of on-site wastewater treatment to that traditionally required, non-compliance with the development standard is considered acceptable given the circumstances of the case.

It is considered that the proposed development would be in the public’s interest because:

· The scope of the development would not be inconsistent with the stated objectives of the development standard (as discussed above) and the stated objectives of the RU5 Village Zone, which are designed to provide for a range of land use, services and facilities that are associated with a rural village and are of a nature which maintains and protects the village character. In this respect, the application provides for the erection of a dwelling and a small attached secondary dwelling and associated on-site sewage management system on a long-standing separate lot, which over many years (albeit vacant) has contributed to the Village character;

· The acknowledgement that the land will require a higher standard of on-site wastewater treatment is environmentally responsible and may well establish an acceptable future standard for the treatment of wastewater within the township resulting in improved environmental outcomes; and

· The development of a long-standing vacant lot will contribute to diversity in housing stock and affordability within Bemboka and the wider Bega region.

Attachments

1 ⇩. 2019.330 Proposed Conditions of Consent

2 ⇩. 2019.330 4.15 Assessment

Council 11 December 2019

Item 8.3

8.3. Exhibition of Draft Residential Land Strategy

This report seeks a resolution of Council to publicly exhibit the draft Residential Land Strategy.

Director Community Environment and Planning

Officer’s Recommendation

1. That Council resolve to publicly exhibit the draft Residential Land Strategy (Attachments 1 and 2) for not less than 42 days.

2. That Council officers prepare a further report to Council following conclusion of the exhibition period.

Executive Summary

A draft Residential Land Strategy has been prepared by Urbanista Australia, on behalf of Council, with input from industry and community stakeholders. The draft Strategy seeks to address the future need for residential land in Bega Valley Shire and provides a vision and framework for residential development over the next 20 years.

This report recommends that the draft Strategy be publicly exhibited, and for a further report to be submitted to Council at the end of the exhibition period summarising any submissions received and including any recommended changes to the draft Strategy.

Background

In August 2019 Council initiated a review of its residential land to address the future need for housing in Bega Valley Shire and provide a vision and framework for residential development in the Shire over the next 20 years. Urbanista Australia was engaged to prepare a draft Residential Land Strategy on behalf of Council.

The draft Strategy works towards the community’s vision outlined in the Bega Valley Shire Community Strategic Plan 2040 and the South East and Tablelands Regional Plan 2036. Once adopted it will inform the Bega Valley Shire Local Strategic Planning Statement 2040.

The key finding, of the draft Strategy, is that there is an adequate supply of zoned land for housing across the Shire for the next 20 years, but there is a need to increase the diversity of housing in all centres, including affordable housing and housing for seniors living.

The draft Strategy addresses the future need for housing and provides direction about how and where residential growth will occur to support the growing population, ageing community and changes in household structure through recommendations for amendments to Council’s planning instruments and policies.

Options

The draft Strategy contains the consultant’s recommendations following their research, and analysis and consideration of the issues raised in discussions with stakeholders and Council staff. Council has the option to change any of the recommendations in the draft strategy before it is publicly exhibited. It is recommended that Council resolve to place the draft Strategy, in its current form (Attachments 1 and 2), on public exhibition and then assess all feedback to the draft Strategy before deciding if any changes are required before it is adopted.

Community Engagement

Consultation undertaken

Stakeholders, that were involved in the development of the draft Strategy, included land owners, housing advocacy groups, real estate agents, development industry representatives, interested community members and Councillors. A meeting with the affordable housing advocates was held and interviews conducted with land owners, developers and real estate agents throughout the Shire. Staff from across Council, including strategic planning, water and sewer services and strategic assets were also consulted.

Consultation Planned

Formal public exhibition of the draft Strategy is proposed. All individuals and organisations that participated in the development of the draft Strategy as well as the local development professionals group will be notified directly, and notices will be placed in the local newspaper, Council News and Council’s social media channel. Hard copies of the draft Strategy will be placed in all Council libraries as well as locations such as post offices in the Shire villages during the exhibition period.

During exhibition period submissions can be lodged via email, letter and comments on the ‘Have your Say’ section of Council’s website.

Council consideration of input

Financial and resource considerations

The project is included in the adopted 2019-2020 Operational Plan and is being funded through a one-off budget allocation from the General Fund.

Funding source		Amount
General Fund	$	40,000

Legal /Policy

The draft Strategy has been prepared to provide a policy framework for the planning and development of the Shire’s residential land over the next 20 years.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The draft Strategy addresses the following goals in the Bega Valley Community Strategic Plan 2040:

• Goal 7: Our Shire continues to be a vibrant, enjoyable, safe and affordable place to live.

• Goal 8: Our places retain their character and scale, development is well planned, and a range of goods and services are available within our Shire that meet local needs.

The draft Strategy also addresses Goal 4 of the South East and Tablelands Regional Plan 2036 to create environmentally sustainable housing choices and the following directions:

• Direction 24: Deliver greater housing supply and choice

• Direction 25: Focus housing growth in locations that maximise infrastructure and services

• Direction 27: Deliver more opportunities for affordable housing

The following projects, which will contribute to improving our residential areas, are included in the draft 2020-2021 Operational Plan:

• Develop Affordable Housing Strategy

• Prepare policy for nature strip planting

Environmental / Sustainability

There are negligible direct environmental sustainability implications of exhibiting the draft Strategy.

The draft Strategy considers the increased risks associated with climate change that relate to residential development and land use practices and minimises impacts of future residential development on the environment though measures such as limiting growth outside existing zoned areas and increasing density in existing urban areas.

Economic

There are negligible direct economic implications of exhibiting the draft Strategy.

The draft Strategy will help ensure there is enough land for housing within the Shire’s urban areas so that residential development supports continued growth and viability of existing commercial precincts. The provision of diverse and affordable housing options is also important in supporting the local workforce.

Risk

Exhibiting strategic planning documents is core business for Council and does not introduce new organisational risks.

Implementation of this Strategy, once adopted, will address the risk of existing housing stock not meeting the needs of our population and will enable future residential development while maintaining the existing character of towns and villages and rural landscapes.

Social / Cultural

Exhibiting the draft Strategy provides an opportunity for local people to provide feedback on whether they feel the document supports their aspirations for residential housing over the next 20 years.

The draft Strategy will increase the diversity of housing that will help to better meet our communities’ housing needs. Improving housing diversity, particularly smaller dwellings and dwellings suited to older people and people with disabilities, will impact on the affordability of housing and improve opportunities for people to live closer to the goods and services they need.

Attachments

1 ⇩. Draft Residential Land Strategy

2 ⇩. Draft Residential Land Strategy Maps

Council 11 December 2019

Item 11.1

11.1. BVSC Swimming Pools Strategy

This report provides a summary of the reasons for development of a swimming pools strategy, overview of feedback from recent community consultation, the benefits of an adopted strategy and recommends placing a draft Pools Strategy on public exhibition.

Director Assets and Operations

Officer’s Recommendation

1. That Council endorse the draft swimming pools strategy for public exhibition with the exhibition and submission period to close in line with Integrated Planning and Reporting documentation on 24 January 2020.

Executive Summary

Swimming pools are important assets to the community. They are also high cost assets to develop and operate. Council has been working on the development of a BVSC Swimming Pools Strategy since the adoption of the six-pool goal in November 2017.

The future provision of public swimming pools in the Shire will come with challenges relating to compliance, meeting community expectations/needs, and funding. Since the goal was adopted, there has been multiple workshops with Councillors discussing some of the issues and challenges in meeting the six-pool goal.

A Swimming Pools Strategy Discussion Paper was developed, and endorsed by Council for public exhibition. The purpose of the Discussion Paper was to provide information to the community and generate discussion on the future provision, management and funding for public swimming pools in the Shire. Exhibition of the Discussion Paper was part of a broader community engagement process which ran from 5 September 2019 to 20 October 2019.

Confirming future funding to effectively operate and maintain swimming pools is as important, if not more important, than capital funding of renewals and upgrades. This was a key point made in the Swimming Pools Strategy Discussion Paper and also the community information sessions.

The Draft BVSC Swimming Pools Strategy will be tabled at the meeting for consideration with a copy to be provided separately to Councillors. The draft strategy is fundamentally based on delivery of the six-pool goal adopted by Council. It has been adapted from information in the exhibited Swimming Pools Strategy Discussion Paper and considers feedback received through the engagement process, as well as taking into consideration the recent SRV related resolution of Council.

Background

At the Council meeting on 22 November 2017, Council adopted the following goal:

‘To have a fit for purpose six pool aquatic strategy that maximises opportunities for the community and visitors to participate and enjoy facilities that meet legislative and compliance requirements and have pools that are operating at modern standards.’

Councillor workshops were held to present, discuss and consider options to meet the six-pool goal. Staff developed a Draft Swimming Pools Strategy Discussion Paper presenting the option most closely representing current service provision, while also meeting the goal in terms of compliance and meeting modern facility standards. It noted funding would be a critical challenge in meeting the goal.

At the Council meeting on 8 May 2019 Council considered the report ‘Draft BVSC Swimming Pools Strategy’ and resolved:

1. That Council receive and note the report.

2. That the Draft Bega Valley Shire Council Swimming Pools Strategy Discussion Paper be placed on public exhibition for a period of no less than 28 days.

3. That a Community Consultation Program be undertaken as outlined in the report and that Council facilitate 6 meetings at the 6 towns where pools currently exist

4. That it is noted the draft strategy to be exhibited includes financial information that has been updated since preparation of this report.

The Bega Valley Shire Council Swimming Pools Strategy Discussion Paper provided information on the uses and the benefits pools provide to the community, the current situation, and also the challenges and costs in provision and operations of these assets. A community engagement program was undertaken from 5 September 2019 to 20 October 2019.

The engagement also included information and discussion on the potential implementation of a Special Rate Variation (SRV) to meet future funding requirements to implement the operations, maintenance, and asset renewals and improvements to meet the six-pool goal.

A final Draft BVSC Swimming Pools Strategy has been developed, for Council consideration to place on public exhibition in conjunction with IPR documentation which applies Council’s resolution of 20 November 2019

That:

1. Council resolves to notify the Independent Pricing and Regulatory Tribunal (IPART) by 29 November 2019 of its intention to apply for a Special Rate Variation (SRV), under section 508(A) of the Local Government Act 1993, for a three (3) year SRV above the rate peg amount to be retained in the rate base permanently, which will by the third year achieve the annual amount required to deliver the Swimming Pool Strategy and meet the goal established in November 2017 of operating, maintaining and upgrading all six pools.

2. Council place the 2020/2021 Integrated Planning and Reporting documents with respect to proposed SRV on public exhibition for an extended period at its meeting on 11 December and include the final percentages and amounts modelled over the three-year program as required.

3. Council note that due to major renewal requirements for Bega and Cobargo pools within the first 10 years of the SRV, Council will not see any reduction in reliance on the General Fund for pools during the first two years of the SRV.

4. At the point in time where the demand on General Fund for pools is reduced due to the SRV, that any reduction in expenditure from the General Fund for pools is transferred to a reserve restricted for the purpose of funding existing infrastructure asset renewals for critical assets.

5. Council proceed to develop the SRV application as outlined above and commence a second phase of community engagement for consideration by Council; and

6. Council receive two reports at a Council meeting to be held on 5 February 2020 to consider formal lodgement of the SRV application with IPART prior to 10 February and adoption of the 2020/2021 Integrated Planning and Reporting documents.

Community Engagement

Consultation undertaken

A community engagement program was undertaken from 5 September 2019 to 20 October 2019. It included:

· Promotion through media release, social media and BVSC ‘Have Your Say’ webpage

· Media and stakeholder briefings

· Community information sessions in each town where pools are located

· Radio interviews

· Advertisements, articles and reports in local media; and

· Notification posters at pools.

Consultation engagement and feedback

Feedback was received through online surveys, hardcopy surveys, comments and ideas taken at community workshops and written submissions.

· 219 attendees at the community information sessions

· 658 survey responses were received

· IRIS independent survey (primarily related to the proposed SRV)

· 15 written submissions (primarily related to the proposed SRV).

Consultation response

There were 658 responses to the online survey consultation and 15 email submissions. While 658 responses are considered a fair result, it should be noted this response represents approximately 2.4% of the over 18-year-old population of the Bega Shire LGA (26827 profile.id.com.au/Bega-valley/population).

Council consideration of input

A notable outcome of the consultation feedback was conflicting sentiments on:

· Desire for retention and operations of six swimming pools and current operational levels.

· Willingness to fund the costs of provision of swimming pools specifically through an SRV, or for operational changes as a cost saving measure.

In summary there was strong support for retaining six pools, however support to raise revenue and/or for operating changes to save money were less popular.

While funding is important the engagement also requested and gathered information on other important aspects of developing a swimming pools strategy including:

· General demographic information

· Which of the six pools people use and how often

· What people use pools for

· Why pools are important

· Importance of meeting modern standards

· How upgrades to modern standards may impact pool visits.

The feedback demonstrated the importance of providing facilities that meet a range of uses including lap swimming, learn to swim, in pool fitness programs and general recreation and relaxation. The importance of providing multi-purpose facilities was reflected in the exhibited Discussion Paper and is included in the Draft BVSC Swimming Pools Strategy.

It is recommended the draft strategy now be placed on public exhibition to allow for further public submissions.

Financial and resource considerations

Funding and resourcing will be a critical part of effective provision and delivery of the six-pool goal adopted by Council. As the Discussion Paper was being developed funding options and models were discussed and considered at Councillor workshops. The funding challenges were made clear in the Swimming Pools Discussion Paper and were a key theme in the community information sessions. A detailed funding model was included in the Swimming Pools Strategy Discussion Paper that was exhibited.

The engagement feedback does not provide clear direction on the methods for funding the adopted six-pool goal.

At the 20 November 2019 Council meeting Council resolved to apply to IPART for an SRV spread over three years to achieve its goal of funding its six pool strategy. Should IPART not approve the SRV the pools strategy will need to be reviewed.

Legal /Policy

Provision of public swimming pools is highly regulated. Compliance with legislation and regulations is an important element in the adopted six-pool goal.

There is legislation and regulations that come into effect when operating public pools. The increase in compliance requirements is an example of how operations of public pools have changed over time since most of the existing pools were built. These regulations relate to:

· Risk management and workplace health and safety

· Supervision levels and employee training

· Chemical use and storage

· Water quality monitoring and testing.

These regulations are in place to manage risk by legal means. The table below lists relevant legislation, codes and standards related to developing and managing public swimming pools. Some are required to be implemented immediately, others come into effect as assets and facilities are renewed.

Table 1.1: Public Swimming Pools – Legislation and Regulations

Legislation / Standard	Requirement
Local Government Act 1993	Sets out role, purpose, responsibilities and powers of local government including the preparation of a long-term financial plan supported by asset management plans for sustainable service delivery.
Work Health & Safety Act 2011	Sets out requirements for safe work practices. (i.e. chemical handling and working in confined spaces)
Public Health Act 2010	Requirements for the control of public health risks associated with public swimming pools.
Food Act 2003	Requirements for businesses that sell food – relevant to kiosk facilities.
Building Code of Australia (BCA)	Enable the achievement of nationally consistent, minimum necessary standards of relevant safety, health, amenity and sustainability objectives efficiently.
Disability Discrimination Act 1992	AS/NZS 1428-Pts 1-5 (2011) Design for Access and Mobility. To ensure infrastructure provides access for all.
NSW Department of Local Government (NSW DLG) Practice Note 15 – Water Safety	Establishes minimum qualifications for employees working in Aquatic Facilities in NSW. It also provides guidance for the management of risk in aquatic environments.
Child Protection (Working with Children) Act 2012	Requirement for adults engaged in child related work to have a current working with children check clearance.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Community Strategic Plan

Developing a BVSC Swimming Pools Strategy directly relates to the following goals from the Community Strategic Plan 2040:

· Goal 2 -Active and Healthy Communities: We are an active, healthy community with access to good quality recreation and sporting facilities, and medical health care.

· Action - Plan and manage recreation facilities, swimming pools and the Sapphire Aquatic Centre, sporting facilities, boating infrastructure and public toilets.

Delivery Program 2017 – 2021 Projects

· Develop a Swimming Pool Facilities Strategy in partnership with the community

· Deliver capital works programs for Swimming Pool facilities

· Undertake business, feasibility and funding assessments prior to beginning detailed planning for major upgrade projects.

· Goal 12 - Strong, Consultative Leadership: Our Council is financially sustainable, and services and facilities meet community need.

Risk

Swimming pools are a high-risk environment. This is reflected in the level of legislation and regulation relevant to their provision and operation. Some risks are not dissimilar to provision of leisure and recreation assets more broadly, noting the higher levels of consequence due to pool assets being water based, highly regulated, with high operational and capital costs. Managing these risks is a further challenge in the management of public swimming pools. Council has identified major risks such as:

· Potential for an incident leading to injury to people while using Council owned and managed facilities, particularly if assets do not comply with applicable regulations

· Increased exposure to public liability claims

· Assets not being utilised to their full potential and capacity (not getting full value)

· Not being proactive in facility planning service delivery. This can lead to reactive, inconsistent and inefficient management of assets

· Real or perceived inequity in provision of facilities

· Endeavours to retain and renew existing provision levels beyond organisational capability (relates to capital works and ongoing operations / maintenance costs)

· Missed opportunities to ‘add value’ to ensure we have facilities that meet a range of uses and needs

· Not aligning future provision with changing community needs.

Each of the above risks will benefit from specific actions. However, the starting point to manage these risks is developing a sound Swimming Pools Strategy that will direct current and future provision across the Shire. The strategy provides actions to deliver fit for purpose facilities and services within the available resources.

Social / Cultural

Much has changed in the past 60 years since the first local pool was built in Bega. There have been significant social, demographic, regulatory and compliance changes over the past 60 years. These changes apply very much in the Bega Valley Shire and have an influence on the delivery of public swimming pools that meet community needs and deliver value to the broader community. Examples of social and cultural changes include:

· Population and demographics: There have been modest population increases, the population has aged, and population centres have moved. For example, there was nil to very little development at Tura Beach when four of the six current pools were built.

· Social changes: It is now common for both parents to be working, single parent families are common, gender differences in participation have narrowed and how people use their spare time has changed.

· Technology changes: Transport is quicker and easier, information is more easily available, and communication is much quicker.

· Provision: For example, when Eden pool was opened in 1980 it was the third pool across three Shire areas. When Sapphire Aquatic Centre (SAC) was opened in Pambula in 2010 there were 6 pools across the same local government area. The higher service levels at SAC lead to a drop-in patronage at Eden Pool and Candelo Pool.

· Community changes: Interests have changed. New sports and opportunities have developed, living standards and facility expectations have increased.

· Regulations and risk management: Compliance requirements have increased in relation to water quality monitoring, lifeguard training and qualifications and water supervision; all which have an effect on operating costs.

· Increased risk of public liability insurance claims.

Environmental / Sustainability

Water quality and water temperature are a fundamental aspect of the provision of public swimming pools. This is also an area where there has been significant change in both regulations and expectations since the current facilities were built.

· Regulations have resulted in additional operational costs to meet compliance requirements. This includes: testing, reporting; training; and supervision.

· Water temperature expectations result in increasing heating (electricity) and operational costs, and potentially reduced patronage at local pools in favour of electrically heated swimming pools.

There have been advancements in technology which have delivered some improved efficiencies in electricity costs, however these do not fully account for the capital and operational cost of heating systems, particularly in the pools with larger water volume and / or lower user numbers.

Options

The effective implementation of a strategy is dependent on acknowledgement of scope of the works and service levels, and effective resourcing to deliver the objectives within.

The draft strategy that has been developed for consideration has been based on the recent resolution of Council in relation to the SRV.

The principal options for Council are to place the strategy on exhibition or defer consideration of the strategy. It is recommended that Council place the strategy on exhibition.

Conclusion

There are six public swimming pools owned by BVSC, which have been constructed over the past 60 years. These pools are highly valued by the community, and provide a variety of health, lifestyle and community benefits. They are high cost assets to build and operate. With some pools showing their age and becoming due for renewal decisions need to be made on the future management of public swimming pools in the Shire.

Council has adopted a six-pool goal and endorsed a Swimming Pool Strategy Discussion Paper for public exhibition. Public consultation was held from 05 September 2019 to 20 October 2019. There were a variety of methods to provide feedback.

A BVSC Swimming Pools Strategy is needed to consider changing needs, standards, regulations and facility trends. The development of a Strategy provides direction for the provision, planning, operation and funding of swimming pool facilities now and into the future.

Attachments

Nil

Council 11 December 2019

Item 11.2

11.2. Floodplain Focus Group Nomination

Nominations for community representatives were sought during the recent Pambula River, Pambula Lake and Yowaka River Flood Study community consultation and Council’s endorsement of the selected nominee is now required.

Director Assets and Operations

Officer’s Recommendation

That Matthew Barnes be appointed, as a community representative, to the Bega Valley Floodplain Risk Management Focus Group for the term of the current Pambula River, Pambula Lake and Yowaka River Flood Study project.

Executive Summary

Council’s Floodplain Risk Management Focus Group currently has two vacancies for community representatives.

Expressions of interest were called during September 2019 for community representatives during the initial community consultation phase of the current Pambula River, Pambula Lake and Yowaka River Flood Study to improve the project outcomes. Five (5) expressions of interest were received resulting in one (1) nomination requiring Council’s endorsement.

Background

Council, at its meeting of 25 September 2013, resolved to form a Floodplain Risk Management Focus Group to assist with consultation over matters related to floodplain risk management.

The approved Focus Group composition and current status is outlined in Table 1 below:

Table 1: Bega Valley Shire Floodplain Risk Management Focus Group
Agency	Permissible Representatives	Current Representatives
Bega Valley Shire	2 Councillors and 3 Officers	2 Councillors and 3 Officers
Department Planning, Industry and Environment (formerly Office of Environment and Heritage)	2	1
Southern Region Local Land Services	1	Nil
State Emergency Services	1	1
Department of Planning	1	Nil
Department of Community Services	1	Nil
Community representatives	3	1

Council has three (3) active floodplain risk management projects the Focus Group is supporting:

· The Towamba River, Lake Curalo and Twofold Bay Flood Study

· The Merimbula Lake and Back Lake Floodplain Risk Management Study and Plan

· The Pambula River, Pambula Lake and Yowaka River Flood Study

The Focus Group (also commonly referred to as a Floodplain Risk Management Committee) is a requirement of the NSW State Government’s Floodplain Risk Management Process. The Group’s primary focus to provide a forum for the discussion of technical, social, economic and ecological issues; and to distill possible differing viewpoints on these issues into recommendations to Council for subsequent Management Plans. An outline of typical focus group operations can be found in the Department of Planning, Industry and Environment Floodplain Risk Management Committee Handbook July 2019.

Council also resolved to form a technical sub-committee, comprising the following members, to deal with technical issues ahead of Focus Group workshops. The current membership status is outlined in Table 2 below:

Table 2: Bega Valley Shire Floodplain Risk Management Technical Sub Committee
Agency	Permissible Representatives	Current Representatives
Bega Valley Shire Council	5 Officers	3 Officers (others co-opted as needed)
Council’s nominated consultant	One consultant per active project	1
Department Planning, Industry and Environment (formerly Office of Environment and Heritage)	2	1
Southern Local Land Services	1	Nil
State Emergency Services	1	1
Bureau of Meteorology	1	Nil

As individual Floodplain Risk Management Plans are adopted by Council, individual Focus Groups or community representatives are not strictly required (under the NSW Government Floodplain Development Manual, the Management of Flood Liable Land, April 2005 (FDM)) but can be advantageous as Council becomes responsible for the implementation of any Floodplain Risk Management Plan. It is not a strict requirement of the FDM that community representatives reside within the catchment under study although this is advantageous.

Options

Council has two available options:

a. To endorse the relevant nomination;

b. To not endorse the relevant nomination.

Endorsing the relevant nomination would allow Council to achieve improved project outcomes for the current Pambula River, Pambula Lake and Yowaka River Flood Study and other active floodplain risk management projects in accordance with the NSW Government FDM.

Not endorsing the relevant nomination would reduce the likelihood of satisfactory community and project outcomes subject to the risks outlined following.

Community Engagement

Consultation undertaken

A call for expressions of interest for community representatives was conducted during September 2019 via the community questionnaire distributed during the initial community consultation for the Pambula River, Pambula Lake and Yowaka River Flood Study. 318 questionnaires were distributed via mail and 11 responses returned. Of the 12 questions, one question invited respondents to indicate their interest in joining Council’s Floodplain Focus Group.

An electronic project consultation webpage was also created on Council’s website under Have Your Say during the initial consultation period. A further 10 questionnaire responses were received electronically from a total of 51 website hits.

All respondents who indicated an interest in joining the floodplain focus group on the returned questionnaires were contacted in writing further explaining the role of the Focus Group and supplied a copy of the current Department of Planning, Industry and Environment Floodplain Risk Management Committee Handbook July 2019 for further consideration.

Of the 21 responses, four (4) expressions of interest were received resulting in one (1) nomination that now requires Council’s endorsement.

Consultation Planned

Consultation with Council’s Floodplain Risk Management Focus Group and its technical sub-committee are requirements for any active floodplain risk management project in accordance with the 2005 NSW Government FDM.

Typically, the community is also consulted during the initial data gathering and public exhibition phase of any floodplain risk management project.

Council consideration of input

Providing consultation via a Focus Group is the subject of this report in order to meet current NSW Government requirements contained within the FDM.

The input from the Focus Group and technical sub-committee is considered in any final floodplain risk management project outcomes. The endorsement of any final outcomes and recommendations arising from floodplain risk management projects are formally considered by Council when individual project reports are finalised for endorsement.

Financial and resource considerations

The ongoing operation of the Focus Group can cost up to $1,000 per annum dependent on the number of active projects in progress. Costs are typically funded from stormwater operating expenses as they are considered ineligible expenses under the State Government’s Floodplain Risk Management Grant Programme.

Future flood studies, floodplain risk management studies or implementation of Floodplain Risk Management Plans requiring any Focus Group input will also require Council officer and financial resources as they arise or as Grants are secured. Other resources required will be meeting room facilities whenever any Focus Group or technical sub-committees are convened.

Funding source		Amount
Stormwater operating expenses	$	1000

Legal /Policy

In accordance with Section 733 of the Local Government Act 1993, floodplain risk management in urban and rural areas in NSW is governed by the NSW Government’s Flood Prone Land Policy and its Floodplain Development Manual, the Management of Flood Liable Land, April 2005.

The Manual is available online from the Office of Environment and Heritage through the following link:

http://www.environment.nsw.gov.au/floodplains/manual.htm

Locally, the NSW Government Policy is implemented through Council’s adopted Local Environmental Plan 2013, Clause 6.3 ‘Flood Risk Planning’ and Development Control Plan (DCP) 2013, Section 5.8.1 ‘Flood Planning’. Focus Group recommendations are purely advisory in nature as responsibility for planning matters lies with Council. The Focus Group’s principal objective is to assist Council in developing one or more Floodplain Risk Management Plans for the LGA. A review of Council’s existing policies may be required when Flood Studies, Floodplain Risk Management Studies or Floodplain Risk Management Plans are eventually adopted.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The completed floodplain risk management projects the Focus Group are supporting will form key technical documents for the implementation of a future Floodplain Risk Management Plan. The completed projects will allow Council to identify and manage the existing flood risks within the catchments under study. Strategic responses for land-use planning, asset planning, emergency response planning, environmental, social and economic impact management can then be formulated to address existing and future flood risk. The Focus Group plays a key role in developing desirable floodplain risk management outcomes for Council and its community.

The projects being supported by the Focus Group meet the 2019/2020 Operational Plan Outcome 5 ‘Connected Communities’ and Goal 10 ‘Identify and complete floodplain risk management projects.

Environmental / Sustainability

Environmental concerns such as climate change and catchment management practices will be addressed through the diverse composition of the Focus Group that typically include Council Planning and Environment officers, State Agency specialists and community representation.

Economic

Minor economic benefits are realised with the operation of the Focus Group and its technical sub-committee when retail, accommodation and other services are consumed by individual members during the course of its operation.

Risk

The Focus Group and its technical sub-committee will provide input for floodplain risk management and minimisation strategies for Council and community assets as part of the overall Floodplain Risk Management Process in accordance with the FDM.

A lack of community representation on the Focus Group can reduce the likelihood of achieving satisfactory outcomes for community stakeholders or capture of valuable local knowledge. These potentially adverse outcomes can be mitigated in part by broad scale community consultation during the initial data gathering phase and public exhibition phase of any floodplain risk management project.

Social / Cultural

Floodplains are the commercial, social and environmental arteries of the State. Transport and communication infrastructure are often located in floodplains which, generally as the more fertile areas, are a base for a significant proportion of the State’s agricultural business. Regular flooding enhances agricultural productivity by increasing soil moisture, recharging groundwater and depositing fertile silt across the floodplain. However, flooding can also interfere with production, communication, transport, emergency management and agricultural practices. Therefore, development and management of floodplains needs to consider a broad range of issues including balancing the benefits of occupying the floodplain against the costs.

Social/cultural concerns will be addressed through the diverse composition of the Focus Group that includes Council officers, State Agency specialists and community representation.

Attachments

1 ⇩. Council Memo Floodplain Focus Group Nomination

2 ⇩. Matthew Barnes Floodplain Risk Management Focus Group Nomination Form

Council 11 December 2019

Item 11.6

11.6. Initial classification and categorisation of Crown Land appointed to Council as Crown Land Manager

This report provides Council with information to outline the progress to date on the classification and categorisation of Crown land under Council management and the next steps in achieving approved Plans of Management.

Director Assets and Operations

Officer’s Recommendation

1. That Council receive and note the report on progress to date regarding the implementation of the Crown Land Management Act 2016 (NSW).

2. That Council make an application for Ministerial consent to classify, and manage, Crown land currently appointed to Council, as Crown Land Manager, and detailed in the attached form as operational land under the Local Government Act 1993 (NSW).

3. That Council notify the Minister administering the Crown Land Management Act 2016 (NSW) of the initial categorisation assigned to Crown land appointed to Council, as Crown Land Manager, as referred to in section 36 of the Local Government Act 1993 (NSW).

Executive Summary

Council is appointed Crown Land Manager of 92 Crown reserves and a further 48 reserves have devolved to our care and control. The majority of these reserves contain multiple parcels and land uses.

1. Under the Crown Land Management Act 2016 (CLM Act), Council must assign an initial category of community land referred to in section 36 of the Local Government Act 1993 (LG Act) to all Crown land Council is appointed Crown Land Manager of; and

2. Under the LG Act, a Plan of Management (PoM) must be adopted by Council for all community land. The PoM categorises the land and governs its use and management.

Under the transitional arrangements for the legislation both these processes need to be completed by 30 June 2021.

Background

The CLM Act authorises Council to manage Crown land, appointed to Council as Crown Land Manager, as if it were public land under the Local Government Act 1993 (NSW) (LG Act). The CLM Act provides that Crown land, managed by Council as public land, must be managed as if it were community land, unless the Minister, administering the CLM Act, has given written consent to classify the land as operational. If Ministers’ consent to classify land as operational land is obtained, Council will have all the functions under the LG Act in relation to operational land. However, Council cannot sell the land without further Ministerial consent, nor do anything that contravenes:

· Any condition of Council’s appointment instrument as a Crown land manager;

· The Crown Land Management Regulation 2018;

· Any applicable Crown land management rule;

· Any applicable plan of management adopted under Division 3.6 of the CLM Act.

In accordance with Section 3.22 (5) of the CLM Act, Ministerial consent to manage land as operational will only be granted where Council can demonstrate that either the land:

· Does not fall within any of the categories for community land under the LG Act, or

· Could not continue to be used and dealt with as it currently can, if it were required to be used and dealt with as community land.

The flow chart below demonstrates the process by which Crown land can be classified, as either operational or community land, in accordance with the CLM Act.

Council officers have reviewed the 92 Crown reserves in the Shire, currently appointed to Council as Crown Land Manager, and determined which reserves may be considered for classification as operational land. These reserves can be found in the attached operational land classification request form.

For all Crown land appointed to Council, as Crown Land Manager, which could not be considered for classification as operational land, the default position for its classification is community land. Under section 3.23 of the CLM Act, all Crown reserves that are classified as community land require an initial categorisation that relates to the Crown land reserve purpose. In determining the category that applies to the reserve, Council officers were required to refer to the LG Act provisions and to consider how these would preserve and facilitate use of the land for the purpose for which it was originally dedicated or reserved.

The LG Act community land categories are Park, Sportsground, General Community Use, Area of Cultural Significance, and Natural Area. Natural Area includes sub-categories of Bushland, Wetland, Escarpment, Watercourse, and Foreshore.

Council is only able to apply one category to each reserve and it must align directly with the reserve’s gazetted purpose. If a reserve has more than one gazetted reserve purpose an additional category can be applied. The historic reserve purpose does not always neatly reflect the activities that currently occur on a reserve. In these cases, staff have recommended a category that best reflects the use of the reserve.

The flow chart below demonstrates the initial community land categorisation process.

Council officers have considered the following and applied a category to all Crown reserves in the Shire, currently appointed to Council as Crown Land Manager:

· Reserve purpose - ensure the land is used for the purpose for which it was originally set aside by its dedication or reservation.

· Current/existing use of the reserve - categorisation based on existing/current use of the reserve only. The initial categorisation cannot be based on proposed or future use. Any change to the categorisation to support a future use must be altered via a plan of management.

· Characteristics of the land.

The attached initial categorisation form details the categorisation applied to each reserve based on the above methodology. Council must now give written notice of initial categorisation to the Minister for approval. The Minister, or the Department, may require Council to change an assigned categorisation if they consider:

· That the category is not the most closely related to the purposes for which the land is dedicated or reserved; or

· Managing the land under the assigned category is likely to materially harm the use of the land for any of the purposes for which it is dedicated or reserved.

Once Council receive the Department’s acknowledgement of an assigned categorisation, or the Department direction to assign a specific categorisation, Council may proceed to develop and adopt a LG Act PoM for the land.

Options

The options available to Council are:

1. Accept the recommendation and delegate authority to the General Manager to make the necessary applications to progress the classification and categorisation of Crown land under Council management.

2. Not to accept the recommendation, noting that it is a legislative requirement for Council to ensure compliant PoM are in place for all Crown land under Council management by 30 June 2021.

Community Engagement

Consultation Planned

There is no requirement for Council to undertake community engagement as part of the initial classification or categorisation process. However, the LG Act requires community engagement activities to be undertaken in the preparation of a PoM, including public exhibition of the PoM and opportunities for the community to comment.

Specifically, Section 38 of the LG Act sets out that:

(1) A council must give public notice of a draft plan of management.

(2) The period of public exhibition of the draft plan must be not less than 28 days.

(3) The public notice must also specify a period of not less than 42 days after the date on which the draft plan is placed on public exhibition during which submissions may be made to the council.

(4) The council must, in accordance with its notice, publicly exhibit the draft plan together with any other matter which it considers appropriate or necessary to better enable the draft plan and its implications to be understood.

Financial and resource considerations

The NSW Government allocated funding to assist in the implementation of the CLM Act and Council received $68,528 as a contribution toward the cost of preparing compliant PoMs. Council must:

· Use the funding for the purpose of meeting the costs it incurs in developing compliant PoMs under the CLM Act and LG Act.

· Use the funding within the funding period.

The financial implications of this process are yet to be fully understood. However, to date the costs have been absorbed by respective areas that are managing the process, namely Property and Planning. It is expected that the total cost of the process will be well in excess of the allocated funding from the State.

Legal /Policy

Under the Native Title Act 1993 (Cth) (NT Act), any act that occurs on land or waters that affects native title rights and interests must be validated in order to lawfully affect native title rights and interests.

As Crown land managers, Council must obtain native title manager advice under Part 8 of the CLM Act before dealing with Crown land under our management. This is to ensure the activity is lawful under the NT Act. To validate an act over a piece of land, Council must review the subdivisions outlined in Part 1 Division 3 of the NT Act. In particular, Subdivision J can validate an act if it is done in accordance with the purpose for which the land was reserved or dedicated, which is relevant to the process of assigning a category to each Crown reserve to which Council has been appointed as Crown land manager. Land management activities not undertaken in accordance with the NT Act may infringe upon native title rights and Council may lose the legal right to continue those activities.

For example, applying the broad category of ‘general community use’ over a reserve may be applicable when no other category applies, but any acts that occur on that land must remain consistent with the reserve purpose, regardless of what is permitted under the objectives of the LG Act.

Council officers have applied a category that closely matches the original reservation or dedication purpose for this reason.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Risk

Preparation of PoMs for all Council managed Crown land is a legislative requirement. Council Crown land managers must ensure there is a compliant PoM for all Crown land that they manage, as community land, within three years of the commencement of Part 3 of the CLM Act (that is, by 30 June 2021). This is to ensure that Crown land is lawfully used and occupied, which is an essential part of Councils’ role as the manager of Crown land. Council may lose its management rights over key Crown reserves if these legislative requirements are not met within the transitional timeframes.

PoMs are also a critical tool to ensure that any authorisation or restriction on the use of a Crown reserve is consistent with the NT Act as mentioned above. If Council does not ensure compliance with the NT Act over Crown Reserves under its management, there could be serious compensable implications for Council.

The CLM Act specifies that Council Crown land managers must expressly authorise all tenures on Crown reserves managed as community land in a Council adopted LG Act PoM by 30 June 2021. Following this deadline Council will not be able to authorise tenure on Council managed Crown land.

At this point the risks are relatively low. This is due to Council having to seek approval for any classification, categorisation requests, and the adoption of any PoM.

The risk comes from Council using a reserve in a fashion that would cause “material harm” in its use, contrary to the existing reserve purpose which is why Council officers have assigned categories that align with the gazetted reserve purpose.

Attachments

1 ⇩. Annexure A Operational Land Classification Request Form

2 ⇩. Annexure C Written Notice of Assigned Categorisation Form

Council 11 December 2019

Item 12.2

12.1. Draft integrated planning and reporting documents -updated financial strategy, asset plans ,long term financial plan, operational plan, budget, fees and charges -public exhibition.

Council has resolved to notify IPART of its intention to apply for a Special Rate Variation and, as part of this process, it is required to exhibit, and adopt, Councils delivery program, operational plan, budget and various IPR documents prior to submitting the formal application.

General Manager

Officer’s Recommendation

That the draft, Revised Delivery Program 2017-2021 and draft Operational Plan 2020-2021, including Council’s Budget and Revenue Policy, and the amended Financial Strategy and Long-Term Financial Plan (LTFP), a Swimming Pools Asset Management Plan, draft Fees and Charges 2020-2021 be placed on an extended public exhibition period from 13 December 2019 to 24 January 2020 with feedback on the documents and Councils proposed Special Rate Variation (SRV) to be considered at the Council meeting on 5 February 2020.

Executive Summary

In accordance with the Integrated Planning and Reporting (IP&R) Framework, Council has prepared revised strategic planning documents for 2020-2021. Typically, the draft Operational Plan and Budget would not be presented to Council until April or May however given Council’s decision to proceed with a Special Rate Variation (SRV) application, and the importance of Council’s IP&R documents needing to reflect the SRV, Council is being asked to place the draft documents on exhibition earlier in the planning cycle. Council is also seeking amendments to its Financial Strategy and Long Term Financial Plan (LTFP) and has developed a sub-plan of the Recreation Asset Management Plan (RAMP), for swimming pools, and these documents will also be placed on extended exhibition.

Council adopted the Resourcing Strategy, which included its Financial Strategy and LTFP, in 2017. At that time Council considered a range of options and resolved its position, for the adopted plans, with the major focus on asset management and outlining a range of projects and actions to progress over the period 2017 to 2019.

Council has also included in its discussions over this period, and in its LTFP, consideration of a number of special rate variations. Council has now resolved its final position in relation to progressing a SRV application for pools and the Financial Strategy, LTFP, and Swimming Pool Facilities Asset Management Plan sub plan have been updated to reflect the adopted position.

The Revised Delivery Program, draft Operational Plan, Budget, and draft Fees and Charges documents have also been prepared for the 2020/2021 year.

Following this meeting the documents will be made available, publicly, for an extended exhibition period to 24 January 2020 for comment and submissions, and a further community engagement program will be conducted.

Background

Over the period since the adoption of the Council’s IP&R documents in 2017 a number of matters have progressed which require aspects of Council’s adopted plans to be amended. In particular, following the decision by Council to notify IPART of its intent to apply for an SRV to achieve their adopted six-pool goal, the following have been appropriately amended:

· Components of the Resourcing Strategy

o Financial Strategy

o Long Term Financial Plan

o Swimming Pools Asset Management Plan as a sub plan of the RAMP.

· Revised Delivery Program.

· Operational Plan 2020-2021.

Resourcing Strategy – Evolution and Amendments

Council’s Resourcing Strategy, adopted in 2017, outlines the planned way forward for Council in relation to the critical areas of workforce, financial strategy, asset management, technology and plant. Council has considered several reports since the Council elections, in September 2016, outlining the approach to enacting the adopted Long Term Financial Plan (LTFP). The LTFP outlined two potential increases to general rates above rate pegging through applications for special rate variations.

Throughout 2017, Council undertook a full review of its’ financial position particularly in relation to the considerable assets Council owns, operates, and manages. Council adopted its Community Strategic Plan, Resourcing Strategy and Delivery Program with a specific focus, resolved at its meeting on 28 June 2017, to continue to strategically address financial sustainability in all asset classes and moving to ensure that the Council consider potential disposal, rationalisation, efficiencies and improved management and operations of assets into the future.

Council resolved on the Financial Strategy and LTFP utilising an Asset Management approach and adopted aspects of models presented which were framed as the “Asset Management Model”. This included a number of proposed SRVs moving forward. These were described as providing an alternative model for tourism marketing and promotions funding; provision of new, or upgraded, recreation assets such as swimming pools; and critical transport and community asset improvements including those aimed to build resilience against storm damage.

Over the period July to December 2017 a further, more detailed, review of all asset classes was undertaken with direction moving forward to focus on being able to maintain and renew current assets and identify efficiencies, and potential asset rationalisation. Workshops were held on each asset class and a full, detailed report presented to Council on 13 December 2017. During this period Council also considered a report on its swimming pool assets and resolved to continue to operate, maintain, renew and update its six pools.

Over this period Council has also:

· reviewed its services

· restructured the organisation on two occasions to achieve operational savings

· responded to several significant disaster events

· received in excess of $75m additional grant income for assets

· considered reports on land divestments

· divested itself of buildings through sale

· improved its works programs to gain efficiencies and extend works undertaken

· developed a Network Operations Centre to improve planning and delivery of works

· resolved to hand back assets to the State Government; and

· undertaken more detailed discussions relating to pools and public amenities.

Council resolutions impacting the Resourcing Strategy

Since the adoption of the Resourcing Strategy in 2017 Council has adopted the following resolutions which have now been considered in the updated Financial Strategy, LTFP and the Swimming Pool Facilities Asset Management Plan.

22 November 2017

Council resolved:

1. That Council note the report.

2. That Council adopt the following as its goal for Aquatic Facilities:

To have a fit for purpose six pool aquatic strategy that maximises opportunities for the community and visitors to participate and enjoy facilities that meet legislative and compliance requirements and have pools that are operating at modern standards.

3. That Council staff develop a full profile covering capital, operational, management and funding options for discussion with Councillors and the community.

13 December 2017

Council resolved:

1. That Council note the report

2. That the actions outlined by asset class be referred to the asset management, delivery plan and long-term financial plan review for the 2018/19 year.

3. That staff begin reviewing and reporting to Council in relation to specific actions outlined relating to Council lands and buildings.

10 October 2018

At its meeting on 10 October 2018 Council considered a report outlining options to continue implementing its strategic direction in relation to the Delivery Program adopted by Council in 2017 and the Operational Plan for 2018/19. Council clearly stated their intention to consider a number of special rate variation (SRV) models. In particular, various tourism and tourism related organisations had approached Council to consider increasing the amount of funds collected to be allocated to tourism marketing and promotions support.

Following a Councillor workshop staff modelled the impact of various SRV options. The 2018/19 LTFP included additional revenues from SRVs from the 2019-2020 financial year. This modelling was not specifically allocated to expenditure projects at that stage. The recommended option would have raised $2.4m per annum in total and compared to the LTFP would place Council’s ongoing finances in a much stronger position.

Council resolved:

1. That Council authorise staff to continue modelling a special rate variation application based on raising funds to fully implement the six- pool facilities strategy and provide for additional tourism marketing program and other tourism related expenses.

2. That a communications program is developed to present the program and all potential impacts to the community.

3. That Council include the development of a special rate variation application proposal as a key item in the draft 2019/2020 operational plan for formal consideration and resolution by Council prior to submission to IPART in February 2020.

4. That Council, in conjunction with other Councils, lobby the NSW Government to amend the Local Government Act to include provision for the application of a special levy for tourism.

10 April 2019

Council progressed discussions with tourism industry groups, the Office of Local Government (OLG) and other Councils, with a significant tourism focus, in relation to funding options for tourism marketing and promotions. A Special Rate Variation (SRV) or other appropriate mechanism to support increased funding for tourism marketing and promotion were investigated.

The Operational Plan 2019-2020 includes an action and associated budget to progress work to prepare a rate increase option.

Council resolved not to continue with the tourism SRV but:

1. That Council note the Report.

2. That Council officers pursue the option of a sector wide special levy with other local Councils, Destination Southern NSW and local government bodies through legislative change.

8 May 2019

Council considered a report on the Draft BVSC Swimming Pool Strategy and resolved:

1. That Council receive and note the report.

2. That the Draft Bega Valley Shire Council Swimming Pools Strategy Discussion Paper be placed on public exhibition for a period of no less than 28 days.

3. That a Community Consultation Program be undertaken as outlined in the report and that Council facilitate 6 meetings at the 6 towns where pools currently exist.

4. That it is noted the draft strategy to be exhibited includes financial information that has been updated since preparation of this report.

20 November 2019

Council resolved:

To achieve Council’s currently resolved position of having a fit for purpose, six-pool aquatic strategy it is recommended that:

1. Council resolves to notify the Independent Pricing and Regulatory Tribunal (IPART) by 29 November 2019 of its intention to apply for a Special Rate Variation (SRV), under section 508(A) of the Local Government Act 1993, for a three (3) year SRV above the rate peg amount to be retained in the rate base permanently, which will by the third year achieve the annual amount required to deliver the Swimming Pool Strategy and meet the goal established in November 2017 of operating, maintaining and upgrading all six pools.

5. Council proceed to develop the SRV application as outlined above and commence a second phase of community engagement for consideration by Council; and

6. Council receive two reports at a Council meeting to be held on 5 February 2020 to consider formal lodgement of the SRV application with IPART prior to 10 February and adoption of the 2020/2021 Integrated Planning and Reporting documents.

The above resolutions chart the ongoing discussions and engagement around Council’s consideration of its’ financial sustainability and in particular, the commitment to addressing asset management responsibilities, and consideration over three years of progressing any SRV applications. The updated Financial Strategy and LTFP have been amended to capture the Council’s resolved position and will be formally placed on public exhibition after this meeting.

Asset Management Plans

Asset Management Plans are guided by the Asset Management Strategy, which is a core component of the Resourcing Strategy, and considerable work has been undertaken in focussing on continual improvement in Council’s asset management and planning across all asset classes. In relation to recreation assets this has also been an area of evolving sophistication over the past 10 years.

In 2011 Council developed its first Recreation Asset Management Plan (RAMP). This document listed all assets and asset components, levels of service, future demand, lifecycle management, and asset management practices. This first RAMP identified two key areas where further work needed to be done in relation to looking at the assets and considering disposal plans. These two areas were pools and public amenities. Below is the direction provided in the adopted 2011 plan.

This first RAMP informed the second year (2014-2015) of the Special Rate Variation (SRV) successfully applied for in 2013. The RAMP clearly outlines the need to review swimming pool provision in the Shire and look at disposal. The 2013-2016 SRV included an annual increase each year, above the rate peg, for three years. The first year, 2013-2014 was directed at roads; the second year, 2014- 2015, helped fund renewal and upgrade of recreational facilities and replaced an expiring five-year SRV (allocation to address sportsground assets) and was directly linked to the 2011 RAMP; and the final year, 2015- 2016 was allocated to building assets as prioritised in the Building Asset Management Plan.

The 2013 -2016 multiyear application relied on the 2011 RAMP with pools and community amenities (public toilets) requiring further consideration and work. This resulted, in 2015, in Council requesting quotes from companies to undertake a review of pool facilities looking to develop a sustainable model for swimming pools into the future. In early 2016 Council commissioned Otium Sport and Leisure to undertake this work. The project was workshopped with Councillors in May 2016 and following the 2016 elections the new Council also considered the report and resolved the six-pool goal and progressed consideration of an SRV, as outlined above, in 2017.

A draft Swimming Pools Strategy has now been further developed following Council’s resolution of 20 November 2019 and is presented, as a separate report, to this meeting.

In order to clearly articulate the differentiation of pools from the RAMP, which was updated and endorsed in June 2017, a separate but linked Swimming Pools Asset Management Plan has been prepared and will be placed on public exhibition following consideration of the recommendation of this report.

The 2014- 2015 SRV for the renewal and upgrade of recreational facilities directly relates to the current RAMP, noting the caveat on swimming pools and community amenities (public toilets). The proposed 2020 SRV application will apply to the newly created Swimming Pool Asset Management Plan and Strategy and cover operations, maintenance, renewals and upgrades. It should be noted that public amenities are still to be resolved and Council has a current strategy and action plan under consideration.

Delivery Program

This is the fourth year of the adopted four-year 2017-2021 Delivery Program. Councillors and staff have continued to review the plans and in 2018 the Revised Delivery Program was adopted, to reflect two major activities, which resulted in significant changes to our projected plan, those being:

1. The Tathra and District Bushfire and Yankees Gap Bushfire response and recovery.

2. The unprecedented level of funding being delivered, in particular capital projects funded by the State Government through the Regional Growth Funds.

The Revised Delivery Program 2017 – 2021 also reflected organisational structure refinements resulting in a redirection of services along with legislation changes.

The Revised Delivery Program outlines which aspects of the Bega Valley Community Strategic Plan 2040 (CSP 2040) are under the direct control and responsibility of Council. It identifies what actions Council is going to undertake, in the medium term, to work towards the goals and strategies in the CSP 2040 within available resources. The program also outlines which Service Area is responsible for achieving the actions.

Each year Council is required to consider matters that have arisen relating to the Delivery Program. Given the recent community engagement and decision by Council to proceed with an SRV application, the Revised Delivery Program presents a summary of the proposed SRV. It also indicates some highlights across the organisation for the 2020-2021 year and includes visual diagrams of some of the projects and programs being delivered across the Shire. A number of these projects and programs and their funding are still to be finalised and appropriate amendments will be made when this process is completed.

Operational Plan

The draft Operational Plan 2020-2021 and detailed Budget is developed every year to directly address the actions outlined in the Delivery Program and identify the projects or activities that Council will undertake within the financial year towards addressing these actions. The Operational Plan 2020-2021 provides a description of what each of Council’s Service Areas will do and indicates Delivery Program measures and service outputs.

The draft Operational Plan 2020-2021 outlines the individual actions and activities that will be undertaken for the year to achieve the commitments made in the adopted Revised Delivery Program 2017-2021. The drafts are now proposed to be publicly exhibited with the feedback considered by Council before adoption.

Budget Summary

The draft Operational Plan also includes a 2020-2021 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.

Some of the key factors which have informed the budget development include:

· 2.6% rate peg increase in general rates

· Award wage increases of 2.5% across general, water, sewer and waste

· Emergency service levy commitment

· increases in Council’s electricity supply contract

· increase in the conduct of the 2020 election and associated induction and new continuing professional development requirements for Councillors

· additional capital expenditure from external funding

· allocation of Council’s financial commitment to the Eden Port funded by the SRV raised for tourism infrastructure.

Revenue Policy

The draft Revised Delivery Program 2017-2021 and Operational Plan 2020-2021 are presented in one document which also includes a statement of Revenue Policy for the applicable financial year, 2020-2021.

The Revenue Policy includes:

- details of estimated income and expenditure

- rating models

- statement of revenue policy and charges; and

- proposed pricing methodology.

Fees and Charges

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 services and facilities for the 2020-21 year are detailed in the draft Fees and Charges document, and are aligned to Council’s pricing policy, with some fees and charges set by legislation.

A number of the Council facility management committees have provided their input into draft fees for 2020-21.

As noted earlier in this report as Council is presenting these IP&R documents for exhibition earlier in the planning cycle than normal it is expected that further changes may need to be considered. These will be presented to the Council and community for consideration should the need arise.

Rates and Charges

Rate Peg 2020/21

IPART has determined that NSW councils may increase their general income by 2.6% under section 506 of the Local Government Act 1993 for the rating year commencing 1 July 2020. Council’s adopted position is to annually take up the IPART rate peg increase in full. This is annually applied to the draft rates and charges and indicated in the Revenue Policy.

Special Rate Variations

Most councils in NSW increase their general income (mainly rate income) in line with the rate

peg percentage set by IPART each year. The Local Government Act 1993 provides the

opportunity for councils to apply for a ‘special rate variation’, which allows the council to

increase its general income by more than the rate peg amount. Special rate variations (SRV) can be a one-off or multiyear percentage lift in total general rate income above the amount raised by the rate peg increase. Applications to IPART for a SRV include the anticipated value of the rate peg, plus the amount above rate peg that is sought. For example, while Council may seek to lodge a SRV application for the proposed 2.92% above the rate peg for swimming pools in the first year of the 3 year SRV, the application will cite an increase of 5.52%, including the announced rate peg at 2.6%.

IPART assess council applications for SRV’s using criteria set by the NSW Government Office

of Local Government (OLG). The criteria are set out in guidelines provided by OLG.

Guidelines for the preparation of an application for a special variation to general income 2019

https://www.olg.nsw.gov.au/sites/default/files/OLG%20-%20Special%20Variation%20Guidelines%202020-2021_0.pdf

The assessment criteria is as follows:

- the need for, and purpose of, a different revenue path for the councils General Fund

(as requested through the special variation) is clearly articulated and identified in the

Council’s IP&R documents;

- evidence that the community is aware of the need for and extent of a rate rise;

- the impact on affected ratepayers must be reasonable;

- the relevant IP&R documents must be exhibited (where required) approved and

adopted by the Council;

- the IP&R documents or the council’s application must explain the productivity

improvement and cost containment strategies; and

- any other matter that IPART considers relevant.

Engaging with the community

Councils are required to engage with their community in relation to SRV applications and be able to demonstrate that the community is aware of the need for, and extent of, a rate rise. The Delivery Program and Long-Term Financial Plan should clearly set out the extent of the General Fund rate rise under the special rate variation. In particular, councils need to communicate the full cumulative increase of the proposed special variation in percentage terms, and the total increase in dollar terms for the average ratepayer, by rating category.

Councils must be able to show that the information they present to the community is transparent and clearly identifies the impact of any proposed rate increase on ratepayers. The council’s community engagement strategy for the special rate variation must demonstrate an appropriate variety of engagement methods to ensure community awareness and input occur. Councils should also show the impact of not applying for, or not having the SRV approved.

Bega Valley Shire Council s508A special rate variation proposal

As outlined in the resolution from the meeting on 20 November 2019, Council indicated that it would advise IPART of its intention to lodge:

a Special Rate Variation (SRV), under section 508(A) of the Local Government Act 1993, for a three (3) year SRV above the rate peg amount to be retained in the rate base permanently, which will by the third year achieve the annual amount required to deliver the Swimming Pool Strategy and meet the goal established in November 2017 of operating, maintaining and upgrading all six pools.

This advice to IPART was lodged by 29^th November 2019 in line with the resolution.

Impact of the special rate variation on rates

As the resolution indicated Council notified IPART of its intent to apply for a Special Rate Variation, over three years, above the rate peg to be retained in the rate base permanently, which will by the third year achieve the annual amount required to deliver the Swimming Pool Strategy. This amount was outlined in the Swimming Pool Strategy Discussion Paper and during community engagement as $2.028million (in 2019/2020 dollars) and would cover the costs of both operational and capital expenses. As the SRV will be phased in over three years this model assumes increases in line with rate peg to the $2.028m amount across the three years.

Table 1.

The above table provides a summary, based on average land values for each category, of what the impact would be to your rates with just the rate peg added each year and then what the impact would be with the proposed SRV. The average residential impact of the SRV, at the end of three SRV increases, will be $2.02 per week.

The figures in Table 1 are based on average residential, business and farmland rates in the Bega Valley Shire. The approved rate peg for 2020 -2021, of 2.6%, has been included in the 2020-2021 year, while a rate peg of 2.5% per annum is assigned by IPART for subsequent years. In those subsequent years, the rate peg set by IPART may be higher or lower for NSW councils, but will not alter the percentage increases to Council’s rate yield.

These figures do not include water, waste and sewer charges. Council will have available, on its website, an updated Rates Calculator which allows ratepayers to see what their rates would look like if this SRV was applied for and approved, and allows ratepayers to add in their relevant water, waste and sewer charges.

If applied for and approved, the SRV will be retained permanently in the general income and the funds realised would be ‘ringfenced’ and only used for the provision of swimming pools and expenditure against the SRV funding would be reported annually in Council’s Annual Report.

Table 2. Percentage increase in rates per year

Note: The assumed rate peg increase for 2021/22 and 2022/2023 is modelled at 2.5% as advised by IPART (confirmed 2.6% rate peg for 20/21). Figures are rounded to two (2) decimal places.

These tables along with the complete SRV application will be made public on the IPART website once Council decides, in February 2020, if they wish to formally submit the SRV application.

Hardship Policy

One of the key criteria from IPART in assessing a SRV is the impact on affected ratepayers must be reasonable. Council understand an increase in rates is never welcome, however it is clear that without the introduction of the proposed SRV the six-pool goal cannot be met.

Council has a Financial Hardship Assistance Policy and Pensioner Concessions. Further details on these are available on Councils website.

General Fund

As per the resolution, made on 20 November 2019, Council will not see any reduction in reliance on the General Fund for pools during at least the first two years of the SRV, due to major renewal requirements for Bega and Cobargo Pools, which are due to be upgraded in 2023 and 2029, respectively. This is reflected in the Long Term Financial Plan and 2020-2021 Budget. When reliance on the General Fund for expenditure in relation to pools is reduced, due to the SRV income achieving the goal amount in the third year, these funds will be transferred to a reserve for the purpose of funding existing infrastructure asset renewals.

Integrated Planning and Reporting

Essential to a SRV application, as outlined by IPART, is that a SRV application will only be

considered where it is linked to a Council’s forward planning. As outlined earlier in this report consideration of an SRV has been noted in Councils’ 2017-2021 Delivery Program adopted in 2017 and the 2019- 2020 Delivery Program and Operational Plan. Given the importance of Council’s IP&R documents needing to reflect the intent and impact of the SRV, the purpose of this report is to place on public exhibition all of the updated IP&R documents, including relevant Asset Management Plans and the LTFP, outlining the intent and impact of the SRV motion resolved by Council in November 2019. The intention is that these documents would be adopted prior to the SRV submission, should Council decide to submit the SRV application to IPART, in February 2020.

IPART Timeline

Should Council resolve to not apply for a SRV and subsequently do not submit the application due on 10 February 2020, or Council do submit an application and IPART do not approve the application or make partial approval of the application (which is expected by May 2020) Council will need to revisit its IP&R documents and its capacity to meet the six-pool goal.

Existing Special Rate Variations

Bega Valley Shire Council has a number of SRVs which have been approved over the period 2001 to 2013. These SRVs were applied for, and approved, to assist Council deliver a wide range of critical Council assets and services. The areas covered include: emergency services, lifeguard services, the regional gallery, library services, weed services, transport assets including bridges, roads, footpaths, culverts, environmental services, tourism infrastructure and promotions, buildings, and recreation assets.

In particular, there are two existing SRVs which appear to potentially overlap with Council’s current resolution to apply to IPART for an SRV to cover the operation, maintenance, renewal and upgrade of pools.

2008- 2009- Council applied for a Special Rate Variation for a range of assets, with a relatively small portion dedicated for ‘recreational buildings and pools’. The larger allocations of this broad-based SRV were for sealing rural roads, rehabilitating culverts and bridges, and the provision of ocean lifeguards during the summer. The ‘recreation buildings and pools’ portion which raises approximately $90,000 pa in today’s terms, is a combined allocation for these two important community asset groups. It has supplemented the budget allocations for recreation assets (not the pools aspects) from the General Fund over the past 10 years, with a focus on rehabilitation of recreation infrastructure. Some examples of valuable community projects made possible through this SRV allocation are the Pambula River Mouth amenities building upgrade; the new Dickinson Oval clubhouse at Bermagui; and the Cobargo town centre toilets renewal. No allocation from this SRV has been allocated to pools. If the proposed dedicated SRV for pools is applied for an approved, the ‘recreation buildings and pools’ allocation in the earlier broad-based SRV will be directed to the recreation buildings exclusively.

2014 – 2015- Council applied for a multi-year SRV from 2013-2016 in which the second year (2014-2015) was a one-off, permanent increase inclusive of rate pegging to replace an expiring recreation variation (which had been in place for five years), with the options to use this amount for debt servicing or for annual project works in line with the LTFP for recreation asset renewals. This approval directly applied to the 2011 RAMP which, as outlined above, indicated that pools and community amenities (toilets) be further reviewed with a direction to consider disposal. Despite this SRV being Council’s principle source of funding for renewals of recreation assets, it has not been allocated to any of the swimming pools, due to the Asset Management Plan in place at the time indicating a review into their provision (including potential disposal) was required. In the 2018-19 year alone, the $557,000 raised was spent on projects as diverse as playground upgrades, seating, interpretive signage, parkland and path renewals, the new viewing platform at Short Point and boat ramp upgrades (including Beauty Point and the pontoon at Quarantine Bay). Importantly, having this SRV in place has also played a key role in securing grant funding through programs such as the NSW Government’s Stronger Country Communities Fund by demonstrating a commitment to improving our recreation assets.

Land Valuations 2020

Every three years, the NSW Valuer-General issues updated land values to each Council in the State. Bega Valley Shire Council land revaluations have been undertaken in the current financial year with new valuations to take effect in the 2020 financial year. It is understood new valuation notices will be distributed by the NSW State Government to property owners in 2020.

While these new valuations will affect the individual apportionment of rates depending on the relative variation in values (i.e. properties whose valuation falls/increases less/more than that average may bear a lesser/greater portion of rates), the overall rate yield allowable to Council does not alter.

Options

Council can resolve to:

1. Place all the listed documents on public exhibition including the draft Revised Delivery Program and Operational Plan 2020-2021 which outline the context and impacts of the proposed SRV application. This option progresses the resolution of 20 November 2019 for further development of an SRV application to IPART in 2020.

2. Resolve not to place the documents on public exhibition and revise its position in relation to the SRV application. In order to meet the IPART deadline for lodging an application (10 February 2020) the current meeting date (11 December 2019) is the last date whereby Council would achieve the public exhibition timelines required (minimum 28 days). Council can exhibit its draft Operational Plan 2020-2021, Budget and Fees and Charges in 2020 as long as it is adopted prior to the end of the financial year.

Community Engagement

Engagement undertaken

Community engagement on the Swimming Pool Strategy Discussion Paper, including the proposed SRV funding model, was undertaken during September and October 2019. The full outline of this engagement and submissions received was reported, in full, to Council at its meeting on 20 November 2019.

Driven by the need to balance community feedback along with the social, financial and operational considerations of meeting the six-pool goal, Council considered four options in relation to a SRV in the report to Council on 20 November 2019. The community engagement process had focussed on the first option which was a single year 11% increase inclusive of the rate peg. Councillors ultimately resolved to introduce a special rate variation over three years, instead of one.

Engagement Planned

The draft documents, which will be placed on exhibition following this meeting, will form part of a second phase of community engagement on the SRV and related IP&R documents. This phase will include many of the activities undertaken during September and October 2019 along with direct correspondence to all ratepayers in an early January rates notice. This phase will focus on the IP&R documents on extended exhibition that reference the proposed three year SRV as resolved by Council. Feedback from this second phase of community engagement will be included in a report to Council on 5 February 2020.

The key elements of informing and engaging with the community for phase 2 are outlined below:

- Council’s website and Facebook will be utilised to provide a summary of the proposed SRV and as a means to provide feedback.

- Online rates calculator – Council’s website includes a rates calculator where ratepayers can input their property valuation details and calculate the potential impact of the proposed Special Rate Variation.

- Special Variation Brochure – a brochure will be direct mailed with the January rates notice instalment letter to all ratepayers outlining the SRV proposal. For those residents who have paid their rates in full, they will receive the brochure via mail. The brochure will outline the purpose and impact of the proposed SRV and will be available online and in hard copy from Council and library branches.

- Media- Council will provide regular media information about the IPR documents and SRV proposal over the period of public exhibition.

- Listening Posts- Council staff will be available at Listening Post sessions in Bega, Tura and Bermagui on the 14^th, 15^th and 16^th January from 2pm-6pm.

- Council News- A special edition of Council News will be released in January 2020.

- Updated Frequently Asked Question sheets on the proposed SRV and on land revaluations.

- Advertising across print, digital and radio.

- Signage and posters will be installed at each of the pools and other sites within each town to provide information about the proposed SRV.

Council consideration of input

Council has considered this matter progressively since early 2017. A number of resolutions, outlined above, reflect the input and assessment by the Council of the matters before it. Council will consider feedback on the draft IP&R documents and the SRV application at its meeting on 5 February 2020 prior to closure for the lodging of applications with IPART on 10 February 2020.

Financial and resource considerations

There are no financial impacts from placing the documents on public exhibition.

Legal /Policy

Under the Local Government Amendment Act 1993, Council is required to develop plans as outlined above and to publicly exhibit documents in the IP&R framework for a minimum period of 28 days. As this exhibition period will commence on 13 December and take place over a holiday period, the exhibition period has been extended beyond the minimum 28 days and will conclude on 24 January 2020.

Council has notified IPART of its intent to apply for a special variation under Section 508A of the Local Government Act 1993.

Strategic Alignment

Strategic Alignment

The draft documents and the proposed SRV to general rates income, as outlined in the draft documents, progresses Council’s currently resolved position.

This currently resolved position connects to the Community Strategic Plan 2040 through:

Goal 2 -Active and Healthy Communities: We are an active, healthy community with access to

good quality recreation and sporting facilities, and medical health care.

Goal 12 - Strong, Consultative Leadership: Our Council is financially sustainable, and services

and facilities meet community need.

Environmental / Sustainability

The Revised Delivery Program 2017-2021 and draft Operational Plan 2020-2021 outline projects, programs and activities that Council will undertake towards addressing environmental and sustainability issues.

Economic

The Revised Delivery Program 2017-2021 and draft Operational Plan 2020-2021 outline projects, programs and activities that Council will undertake towards aiding economic growth in our region.

Social / Cultural

The Revised Delivery Program 2017-2021 and draft Operational Plan 2020-2021 outline projects, programs and activities that Council will undertake towards building social and cultural capacity in our community.

Attachments

Nil

12.2. OLG Risk Management and Internal Audit Framework for Local Councils in NSW

This report provides an update on legislative changes to Internal Audit and Risk Management for Council’s in NSW and the Office of Local Government’s (OLG) discussion paper on the proposed internal audit and risk management framework for local councils in NSW.

Acting Director, Business and Governance

Officer’s Recommendation

1. That Council note the information contained in the Office of Local Government’s (OLG) draft discussion paper regarding proposed requirements for managing Risk & Internal Audit for Local Councils.

2. That Council endorse the proposed submission to be lodged.

Executive Summary

In 2016, the NSW Government made it a requirement under the Local Government Act 1993 that each council have an Audit, Risk and Improvement Committee (ARIC). This requirement is likely to take effect from March 2021. Councils are also required to proactively manage any risks they face under the new guiding principles of the Act. The discussion paper on the framework for ARICs is currently on exhibition and Councils and others are invited to make submissions.

Bega Valley Shire Council has had an ARIC since 2009. The current committee is very active and will also consider the draft guidelines at their next meeting.

Background

Following legislative amendments in 2016 the NSW Government is consulting on a proposed regulatory framework that will support the operation of Audit Risk and Improvement Committees (ARIC), and the establishment of a risk management framework and internal audit function in each council.

The Office of Local Government has recently released a discussion paper (Circular No 19-20) detailing a new internal audit and risk management framework for local councils in NSW. In accordance with this draft framework there will be nine core requirements that councils will be required to comply with when establishing their ARIC, risk management framework and internal audit function.

The requirements are summarised with notes in the table below:

Core Requirements	Status	Implementation Notes
1. Appoint an independent ARIC	ü	BVSC has appointed an independent ARIC regulated by an updated committee charter.
2. Establish a risk management framework consistent with the current Australian risk management standards	ü	BVSC adopted an updated risk management procedure (Procedure 6.03.1 Enterprise Risk Management) on 19 August 2019 based on ISO 31000:2018. Council continues to improve the risk management framework based on this procedure, for example the creation of a risk management SharePoint page, risk management body of knowledge, risk registers, resources and a draft risk appetite statement is also being developed.
3. Establish an internal audit function mandated by an Internal Audit Charter	ü	The ARIC charter was updated on 7 February 2018 and reflects the changes in the amended LGA.
4. Appoint internal audit personnel and establish reporting lines	ü	BVSC has appointed a Risk & Internal Audit Coordinator to provide administrative support for ARIC. Additionally, Council has established a panel of pre-approved audit firms to provide internal auditing services.
5. Develop an agreed internal audit work program	ü	BVSC has established a rolling three-year Strategic Audit Plan and each year an Operational Audit Plan is drafted – this document provides detailed audit scopes for the identified reviews.
6. Perform and report internal audits	ü	BVSC has consistently undertaken internal audits since 2013 – to date 27 reviews have been completed an average of approximately three audits per year. NOTE: This reporting period four internal audits are scheduled to be undertaken.
7. Undertake ongoing monitoring and reporting	ü	Ongoing monitoring and reporting are undertaken in a limited way based on management assurances. The ARIC maintains an Internal Audit Actions Register and this document is periodically circulated to relevant personnel to update past audit recommendations.
8. Establish a quality assurance and improvement program	û	This requirement is yet to commence dependent on organisational capacity.
9. Councils can establish shared internal audit arrangement	n/a	At this stage BVSC will maintain its own ARIC independent of neighbouring Council’s. It is believed that Council and the Community is best served by having a BVSC focused ARIC however, should circumstances change Council is not opposed to the idea of considering shared services with other adjoining councils.

As indicated in the table above Council is well placed for the proposed changes to the Local Government Act and will be fully compliant with all requirements by the 2026 deadline proposed by the Office of Local Government. A snapshot guide has been attached for Councillor information and a full copy of the draft discussion paper can be found at:

1. https://www.olg.nsw.gov.au/sites/default/files/A%20new%20risk%20management%20and%20internal%20audit%20framework%20for%20local%20councils%20in%20NSW%20-%20discussion%20paper.pdf

Draft Discussion Paper Proposed Submission Elements

Overall the draft discussion paper provides a solid and well thought out framework for Councils in relation to how the ARIC will be coordinated and how Councils should manage risk. There are aspects within the proposed framework that staff consider should be responded to submit as part of the consultation phase. These include:

Councillor Representation on ARIC

In the draft discussion paper Councillors are placed as observers with no voting or membership rights. This requirement is different to BVSC’s current configuration of the ARIC where the current structure (as articulated in the ARIC Charter) allows for up to two Councillors as full members. Staff recommend that Councillors should be full members of the Committee and that this approach is consistent with good governance principles.

Remuneration for ARIC members

The draft discussion paper recommends that Councils remunerate ARIC members using rates based on the NSW Government’s prequalification scheme. The framework does allow for voluntary membership. It is felt that the suggested rates of pay, for example the ARIC Chair for a medium sized Council would be paid $16,213 per annum, would place BVSC at a disadvantage in attracting suitable candidates as we do not have the resources to pay ARIC members at the proposed rates. There is also potential flow on impacts for Council’s other Committees. Staff recommend that this requirement not be mandatory but by resolution of each Council.

Appointment of a Chief Audit Executive

The draft discussion paper proposes that Councils appoint a Chief Audit Executive to oversee council’s internal audit activities. Once again, this requirement is a deviation away from our current structure and also potentially takes the organisational structure decisions away from the General Manager. The discussion paper does concede that for smaller rural council’s it may not be possible to appoint both a Chief Audit Executive and a separate Risk Management Coordinator but any decision to combine these roles must be ratified by the ARIC. Staff recommend that this role in a small to medium Council should be able to be combined with a senior role in line with other key responsibilities.

ARIC Recruitment

The draft discussion paper recommends recruitment of ARIC members using the prequalification scheme operated by NSW Treasury which details “ability to act independently” as a core requirement which this suggested process will provide. This is also different to BVSC’s current model which allows for suitably qualified residents to be a part of the ARIC. Staff recommend that recruitment criteria should remain based on Council guidelines.

Timeline for Comments

All councils, members of the public and risk management and internal audit practitioners are invited to submit their feedback and ideas on the proposed model in writing by 31 December 2019. Council staff intend to provide a submission to the draft discussion paper specifically articulating the concerns identified in the items above. Council’s ARIC will consider the matter, and any submission they wish to make, at their meeting on 17 December 2019.

Financial and resource considerations

As detailed above the suggested Risk and Internal Audit framework may have implications on Council resourcing both financial (in terms of remuneration paid to ARIC members) and organisational structuring considerations.

Legal /Policy

As detailed above these changes relate to amendments made to the NSW Local Government Act 1993.

Attachments

1 ⇩. Proposed Internal Audit & Risk Framework Snapshot Guide

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

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

Council	11 December 2019
*Item 8.1 - Attachment 1*	Draft Commercial Land Strategy

Council	11 December 2019
*Item 8.2 - Attachment 1*	2019.330 Proposed Conditions of Consent

Council	11 December 2019
*Item 8.2 - Attachment 2*	2019.330 4.15 Assessment

Council	11 December 2019
*Item 8.3 - Attachment 1*	Draft Residential Land Strategy

Council	11 December 2019
*Item 8.3 - Attachment 2*	Draft Residential Land Strategy Maps

Funding source		Amount
From existing budget allocation	$	437.35

Council	11 December 2019
*Item 9.2 - Attachment 1*	Proposed Alcohol-free Zone - Biamanga National Park Aboriginal Cultural Area

Council	11 December 2019
*Item 9.3 - Attachment 1*	Physical Disability Council of NSW Request for Support

Council	11 December 2019
*Item 11.2 - Attachment 1*	Council Memo Floodplain Focus Group Nomination

Council	11 December 2019
*Item 11.2 - Attachment 2*	Matthew Barnes Floodplain Risk Management Focus Group Nomination Form

Evaluation Criteria
Criteria	Weighting
Price	60%
Project Delivery and Functionality	18%
Similar Project Experience	15%
Recognition of Local Outcomes	5%
Support of Indigenous Business	2%
Total	100%

Funding source		Amount
NSW Government 2017-18 Active Transport Program: Tathra to Kalaru Bike Track	$	3,000,000

Council	11 December 2019
*Item 11.5 - Attachment 1*	Attachment 1. Temp Loading Zone from Beach to Alice Street

Council	11 December 2019
*Item 11.5 - Attachment 2*	Attachment 2. No Stopping Zone Market St to 30min parking

Council	11 December 2019
*Item 11.5 - Attachment 3*	Attachment 3. No Stopping Zone removal on Park Street

Council	11 December 2019
*Item 11.5 - Attachment 4*	Attachment 4. Merimbula Drive reduction from 2 hours to 1

Council	11 December 2019
*Item 11.5 - Attachment 5*	Attachment 5. Monaro Street 1 hour time restriction

Council	11 December 2019
*Item 11.5 - Attachment 6*	Attachment 6. Monaro Street 2 hour parking

Council	11 December 2019
*Item 11.5 - Attachment 7*	Attachment 7. Candelo school bus zone 3.45 to 4.15pm

Council	11 December 2019
*Item 11.6 - Attachment 1*	Annexure A Operational Land Classification Request Form

Council	11 December 2019
*Item 11.6 - Attachment 2*	Annexure C Written Notice of Assigned Categorisation Form

Level	Garden watering	Use of fixed sprinklers and unattended hoses	Watering of paved areas	Drip irrigation systems	Watering of lawns	Washing of vehicles/boats & topping up of swimming pools
ONE	One hand-held hose per property may be used 6-8 am AND 6-8 pm1	Not permitted	Not permitted	May only be used if fixed to a single tap per property and only in lieu of a hand-held hose	As per garden watering	As per garden watering3
TWO	One hand-held hose per property may be used for a maximum of 60 MINUTES PER DAY under an Odds and Evens System2 between: 6-8 am OR 6-8 pm1	Not permitted	Not permitted	Not permitted	As per garden watering	As per garden watering3
THREE	Bucket watering only between: 6-8 am OR 6-8 pm1	Not permitted	Not permitted	Not permitted	Not permitted	As per garden watering3
FOUR	Not permitted	Not permitted	Not permitted	Not permitted	Not permitted	Not permitted

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

Council

11 December 2019

Staff Reports –Planning And Environment

11 December 2019

8.1. Exhibition of Draft Commercial Land Strategy

Officer’s Recommendation

Attachments

Council

11 December 2019

Staff Reports – Community, Culture and Leisure

11 December 2019

Council

11 December 2019

Staff Reports – Infrastructure Waste And Water

11 December 2019

Council

11 December 2019

Staff Reports – Governance And Strategy

11 December 2019