Agenda of Council - 25 November 2020

Council 25 November 2020

Item 9.1

9.1. Draft Disability Inclusion Action Plan 2021-2025

This report seeks a resolution of Council to publicly exhibit the draft Disability Inclusion Action Plan 2021-2025.

Director Community Environment and Planning

Officer’s Recommendation

1. That Council resolve to publicly exhibit the draft Disability Inclusion Action Plan (Attachment 1) for a period of no less than 60 days to seek broader community feedback.

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

Executive Summary

Bega Valley Shire Council’s inaugural Disability Inclusion Action Plan (DIAP) 2017-2020 is expiring this year. Under the NSW Government’s NSW Disability Inclusion Act 2014 Council is required to establish a new DIAP for 2021-2025. Building on the successes of the DIAP 2017-2020, the new DIAP 2021-2025 includes specific actions and measures that will be integrated into Council’s operational plans and reported on an annual basis. This draft DIAP highlights actions that will build inclusion across a range of core business activities and includes some stretch actions to encourage progress over the next four years. The next step in finalising the DIAP 2021-2025 is to seek broader community input on the draft document.

Background

Under the NSW Disability Inclusion Act 2014 all councils are required to develop an action plan that demonstrates their commitment to improving access to services, facilities and jobs for people with a disability and changing perceptions about people with a disability. In 2017, Council released its first four-year DIAP. This plan has guided action across a range of Council services, which include increased accessibility of playgrounds, improvements to car parks and public amenities, cultural programs developed and delivered by people with a disability, and awareness raising activities for Council staff.

The NSW Office of Local Government has recently extended the requirement for councils to adopt their DIAPs to December 2021, in line with the extension to Council terms. Prior to this announcement, Council staff were well underway in the development of the draft DIAP 2021-2025.

After considerable consultation, the draft DIAP for 2021-2025 (Attachment 1) has been developed for public exhibition. It includes a series of actions linked to the current Delivery Program and some new actions to be incorporated into future Operational Plans.

Actions in the DIAP reflect Bega Valley Shire Council’s commitments to its community and the Access and Inclusion Advisory Committee.

Options

Council may choose to:

1. Place the updated plan on public exhibition, with a view to finalise a new DIAP in early 2021. This is the recommended option as the draft DIAP is well progressed and once a new version is adopted will inform Council’s next round of Integrated Planning and Reporting documents (Community Strategic Plan, Delivery Program and Operational Plans).

2. Extend the DIAP 2017 – 2020 for 12 months and postpone the introduction of a new DIAP until December 2021.

Community and Stakeholder Engagement

Engagement undertaken

In line with Council’s adopted Community Engagement Strategy, a range of stakeholders were consulted in the development of the draft DIAP 2021-2025. This engagement included:

· Presentations to Council’s Access and Inclusion Advisory Committee

· A presentation to the Bega, Eden, Merrimans (BEM) Local Aboriginal Liaison Committee

· Presentations to the Council’s Senior Leadership Group, and the establishment of an internal cross-Council working group

· Discussions with individual BVSC program managers to refine actions and to ensure that they are realistic and achievable.

· Consultation with the National Disability Insurance Scheme (NDIS) Local Area Coordinator (Uniting NSW).

A Councillor workshop was held on 21 October 2020. The draft document has been updated to reflect Councillor feedback.

Engagement planned

The draft DIAP is planned to go to public exhibition for a 60-day period, starting in late November. During that period additional stakeholder consultation is planned with several disability agencies and schools. Feedback from these stakeholders will be reported to Council in February 2021.

Financial and Resource Considerations

The development of the DIAP 2021-2025 was budgeted for in 2020-21 and utilised existing Council staff resources. There is no additional cost to Council associated with the exhibition and adoption of the plan.

Actions identified in the DIAP extend over the life of the plan and will be considered annually as part annual budget process. Considerable work has gone into identifying actions which are realistic and achievable, and which can be met in a cost-effective manner. Many actions are cost neutral and others will rely on funding from external sources. A number are aligned to current asset renewal projects. Where additional funds are required and have not been identified this is explicitly stated in the DIAP.

Costs to implement actions identified in the DIAP are able to be absorbed within existing programs and potential grant funding allocations. Costs to implement specific DIAP actions will be included in annual Operational Plans and Budgets.

Item	$ Excl GST
Expenditure Detail
Development of draft DIAP (staff time only)	Nil
Total Expenditure	Nil
Source of Funds
General Fund and grant funded staffing allocation	Budgeted staff time
Total income available	Budgeted staff time
Total Project Capital Cost	Nil
Total Available Construction Funding	Nil
Project Funding Shortfall	Nil

Legal /Policy

The DIAP is required by all public authorities under the NSW Disability Inclusion Act 2014 and Council also has obligations under the Disability Discrimination Act 1992.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The DIAP is consistent with Council’s Community Strategic Plan:

Goal 1: We ae cooperative, caring and enjoy a culturally rich community life

Goal 2: We are an active, healthy community with access to good quality recreation

and sporting facilities and medical health care

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 of life

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

and aligned with the following actions in Council’s adopted 2020-2021 Operational Plan:

1.1.2.5 Develop a Disability Inclusion Action Plan 2021-2025

Environment and Climate Change

There are no direct environmental sustainability implications of placing the draft DIAP on public exhibition.

The actions within the draft DIAP are consistent with Council’s adopted planning documentation including its Clean Energy Plan and Climate Resilience Strategy.

Economic

There are not direct economic impacts of placing the draft DIAP on public exhibition.

One of the overt goals of the DIAP is to increase economic inclusion in the Bega Valley Shire. This is to encourage activity by local businesses that incorporates people with disability and acknowledges their roles as customers, employees and community members. A centrepiece of the DIAP is the Sapphire Tourism Strategy that will underpin a growth in accessible tourism.

Risk

The draft DIAP acknowledges the expectation from the community that Council will consider the inclusion of people with disability across its business and will advocate on their behalf. This creates a reputational and potential budget risk through the commitments in the DIAP. This risk is mitigated by incorporating the actions into Operational Plans, which are subject to public consultation, in addition to regular review of progress by Council staff.

Social / Cultural

Bega Valley Shire Council has a significant percentage of its population that is ageing and/or has a disability that will directly benefit from improved inclusion and accessibility. The remainder of the population will benefit from a range of direct and indirect benefits by improving accessibility and equality in the Shire.

Attachments

1 ⇩. Draft Disability Inclusion Action Plan 2021-2025

Council 25 November 2020

Item 11.1

11.1. Sportsground Facility Management Plans

This report presents recommendations to endorse several updated sports facility management plans as well as several new sports facility management plans.

Director Assets and Operations

Officer’s Recommendation

1. That Council receive and note the information in the report.

2. That Council endorse the Facility Management Plans for Dickinson Oval, Wolumla Recreation Ground, Berrambool Sports Complex, Pambula Sporting Complex, George Brown Oval, Barclay Street Sports Complex, Bega Sporting Complex, John Gordon Recreation Reserve and Lawrence Park.

Executive Summary

Facility Management Plans (FMPs) for regional and district level sports grounds were previously endorsed for adoption by Council on 20 July 2016. The FMPs have been reviewed and changes made for Dickinson Oval, Wolumla Recreation Ground, Berrambool Sporting Complex, Pambula Sporting Complex, George Brown Oval and Barclay Street Sports Complex. FMPs have been developed for some additional sites where an active site committee and representation on Council’s S355 Sportsgrounds Committee is now in place. These sportsgrounds include Bega Sporting Complex, John Gordon Recreation Reserve and Lawrence Park.

Background

Sportsgrounds include a range of infrastructure including playing surface/s for a variety of sports; lighting; irrigation systems; pavilions; toilets; parking; seating and shelters. These are managed and maintained by a mixture of Council, site committees and user groups.

There are currently 12 sportsground sites managed by Council across the Shire, with volunteer committees in place at many sites working in partnership with Council. It is important to establish management and operational plans to provide fit-for-purpose, safe and accessible sporting facilities, best utilising resources available across the Shire. An FMP provides direction for the operation, maintenance, management, planning and use of sportsgrounds and associated facilities so that the users and community’s needs are best met. It also provides an opportunity for future aspirational goals to be identified.

The management and operation of sportsgrounds incurs expenses such as: electricity; water (irrigation); cleaning and mowing. There are also other regular (i.e. seasonal and annual) maintenance tasks and asset inspections that should be undertaken to ensure the facilities are in a fit for purpose condition. For this to happen it is important there is an operations and planning tool, so all tasks required for the facilities to operate are understood and suitably resourced.

Council commenced a process for the development of FMPs for the sportsgrounds across the Shire in 2015. Sites with active sportsground committees represented on the S355 Committee developed FMPs which were endorsed at the 20 July 2016 Council meeting. These have been reviewed and another four FMPs have been developed and are now prepared for endorsement.

Further consultation is required with the Colombo Park Sportsground Site Committee and site Trustees (Bemboka Lions Club). This relates to the age and application of the Trustee Agreement (1973), relevance to current management needs, requirements and responsibilities and resources and capacity to meet these. The site FMP will look to address and define these items. Attention to developing a site committee of all user groups for the site will be included in consultation.

Wyndham Recreation Ground and Towamba Sportsgrounds do not have active sports clubs regularly using the facilities. Council staff liaise with those communities as required.

Draft Facility Management Plans

A copy of the Draft BVSC Sportsgrounds Facility Management Plans is available at:

https://begavalley.nsw.gov.au/page.asp?f=RES-EVW-10-04-75

Options

Options for the management of Sportsgrounds include:

· Adopt Sports Grounds Facility Management Plans to guide the ongoing operations and management of sports grounds

· Not adopt Sports Grounds Facility Management Plans which will result in highly reactive and less efficient and effective management

Community and Stakeholder Engagement

Consultation with site representatives has been a key aspect in developing and establishing the FMPs for sportsgrounds.

The FMPs identify individual asset types at each site and from there the tasks required and the frequency required to manage those assets. There have been meetings and direct discussions to facilitate the development of plans that reflect the needs of users and the Site Committees. The FMPs identify resources available (including site committee and sports club volunteers) and who is best placed, capable and responsible for undertaking those tasks. It is noted that some tasks relate to specific club and user operations, some relate to assets principally used by particular users and some relate to management of the site and facilities as a whole. The review of the FMPs has been raised and discussed as an agenda item at S355 Sportsgrounds Committee meetings over the past 12 months.

A key element has been acknowledging the strengths and capabilities of the different groups involved at each site. Drafts were developed and distributed to each site committee to enable them the opportunity and time to engage the respective user groups at each site in the process and collectively recommend any alterations they felt necessary.

Identifying responsibility reduces the possibility there will be ‘grey areas’, duplicated effort or misunderstandings. Importantly it also provides an opportunity to account for the value and worth of volunteer input in the running of the facilities with in-kind valuation measured on committee and user group tasks.

Council staff will continue to work with Sportsground Site committees in implementation of the FMP’s.

Further engagement is to be undertaken with Colombo Park trustees (Bemboka Lions Club).

Financial and Resource Considerations

In developing the resourcing component of the FMPs, the operating and maintenance requirements have been identified along with asset renewals and proposed capital upgrades prioritised by the site committees.

The FMPs provide use as a budgeting tool that identifies the cost for each task required at each site and consequently encourages the efficiencies in the management of each sportsground, particularly where items are included in Council’s works programs.

Operational requirements and resource allocations are intended to be adequate to meet the levels of service required to deliver fit-for-purpose, safe, and accessible sporting facilities.

FMP resourcing and service levels will be reviewed with budget cycles to acknowledge changes in available Council and/or volunteer resourcing.

Capital expenditure is principally guided by the Recreation Asset Management Plan renewal program; however, within the FMPs, committees have had the opportunity to identify capital renewal and upgrade projects they would like to prioritise.

Detailed operational resourcing requirements for each site is included in the FMP documents.

Within the FMP’s are tasks with annual costs exceeding $20,000. These are noted below fro reference.

Site	Task	Estimated cost per year	Comments
Bega Sporting Complex	Mowing	$31,720.00	Regional site / multiple ovals
	Water Usage	$37,724.00	Sewer charges being incurred. Reduction expected with separate meters installed 2020 to reduce charges
	Maintenance Oval	$22,160.00	Regional site / multiple ovals
Berrambool Sporting Complex	Mowing	$21,000.00	District site with multiple ovals
Berrambool Sporting Complex	Water Usage	$24,688.00	Allocated Kl as per Council resolution 2013
Pambula Sports Complex	Maintenance Oval	$20,200.00	Regional site / multiple ovals

Costs associated with sporting facilities are included in existing budgets and any increase in service levels would have negative budget impacts whilst any reduction in service levels would likely result in budget reductions.

Legal /Policy

There is legislation and regulations that come into effect in the operation and maintenance of sportsgrounds. The FMP documents help Council manage work health and safety requirements and public liability duty of care.

The Local Government Act 1993 applies in relation to procurement of services and for use of public assets for commercial benefit. This applies particularly in relation to the purchasing of goods and services for the operation and/or maintenance of the sportsgrounds.

The Crown Lands Act applies where assets are located on Council managed Crown Lands as is the case with some the sportsgrounds.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

There are several Council Plans and Policies that relate directly and indirectly to the development of the FMP. They include:

· Community Strategic Plan (CSP)

· Asset Management Plan – Parks and Recreation 2017 (AMP)

· BVSC Procedure – Community Project Proposals.

· BVSC Specification Sports Ovals/Fields 2016

· Sportsgrounds Condition Assessments 2016

The following objectives provide the framework for the establishment and implementation of equitable and operational Sportsground FMPs:

· Encouraging community health and wellbeing through opportunities to participate in sports and recreational activities.

· Providing community facilities that are accessible to all community members.

· Providing sportsgrounds that offer the best possible ‘fit-for-purpose’ facilities.

· Increasing the multi-use potential of sporting and ancillary facilities to see sites are adaptable and well used into the future.

Goal 2 of the Bega Valley Community Strategic Plan 2040 states: We are an active, healthy community with access to good quality recreation and sporting facilities, and medical health care.

Policy

Sportsground committees and their members operate under the guidance of the following Council Policy and procedure documents:

§ Sportsground Committee Guidelines

§ Sportsground S355 Committee Guidelines

§ Sportsground Committee Purchasing Guidelines

§ BVSC Code of Conduct

Asset

The sportsgrounds that are the subject of these FMPs are included in the BVSC Parks and Recreation Asset Management Plan 2017 (AMP). They are situated on a mixture of Council owned land and Council managed Crown Land.

The goal of asset management is to meet a required level of service in the most efficient way through the operation, maintenance and renewal of assets. Council’s Asset Register and Asset Renewal Program are contained in the AMP and identify assets at sportsgrounds including details of the remaining life, renewal time and cost estimates. The asset inventory makes some assumptions and generalisations to enable it to provide a Shire-wide picture of recreation assets.

A key outcome of the AMP is that recreational assets are financially sustainable. This requires Council to monitor and identify assets in need of renewal, understand the cost and implications of upgrades, review the levels of use and value of provision and where need be, rationalise assets.

Sportsground committees, Council officers, sports clubs, contractors and other volunteers all play an important role through their involvement in the care and maintenance of Council sportsgrounds, with the responsible group for each task clearly outlined in the FMPs.

Environment and Climate Change

Sporting facilities are impacted by climatic variability in that they are highly dependent upon water to provide good surface coverage. In prolonged dry periods greater irrigation is required to maintain service levels.

Sporting facilities often require energy consumption through the operation of amenities and lighting. Initiatives continue to be undertaken to reduce energy consumption and emissions at sporting facilities through the installation of more energy efficient lighting and solar power solutions.

As an example, Clean Energy for Eternity and the Site Committee at Lawrence Park Tathra have undertaken a solar energy project on the site. Council has previously committed that energy cost reductions at sites will be reinvested into the site to incentivise site committees to be more energy efficient.

Economic

Sporting facilities not only cater for recreational needs they also attract additional economic activity within the Shire. This is through drawing in visitors from outside the Shire for organised competitions and events. In addition, the sites are often used for other economy stimulating events such as concerts.

Risk

Having FMPs that identify the fundamental aims of provision, service levels and responsibilities in delivering tasks is an important aspect of delivering useable and safe facilities and reducing the likelihood of incidents occurring. Each FMP includes a Facility Risk Management Plan which identifies potential risks, provides a risk rating based on the likelihood and consequences should the risk event occur and outlines a risk treatment action. Relevant safe work method statements are also included for each site where volunteers undertake facility maintenance activities.

Social / Cultural

Many residents within the Shire participate in regular organised sport as a player, administrator, volunteer or spectator and as such sportsgrounds are highly valued by the Bega Valley Shire community. Historically there has been a very high level of volunteer involvement in running many of these sites which has led to high community interest.

An active lifestyle and involvement in sport and recreational activities provides physical and social health benefits. Individual and team sports promote social cohesion, networking, development of friendships and can improve social skills.

Importantly the FMPs clearly account for the value and worth of volunteer inputs in the running of facilities through putting a commercial value on the work undertaken by volunteers at each site, which would otherwise have to be funded by Council and the broader community.

Attachments

Nil

Council 25 November 2020

Item 11.2

11.2. Bega Valley Shire Museums

This report details the use of Council owned and managed buildings by the Shire’s museums as requested by Cr Russell Fitzpatrick at the Council meeting of 11 November 2020.

Director Assets and Operations

Officer’s Recommendation

1. That Council receive and note the report.

2. That Council enter into a formal tenure arrangement with the Bega Valley Historical Society Incorporated for their occupation of the Bega Pioneers’ Museum (being Lot 1 DP 787591) located at 87 Bega Street, Bega, for an annual rental fee as determined by a registered Valuer, noting a rebate may be applied once assessed against Council’s Rental Assessment and Rebate Procedure.

3. That Council approve the termination of the current licence agreement with Bega Valley Genealogy Society Incorporated for their occupation of the Old Pambula Courthouse and Police Station building within Reserve 180066 at Pambula should they formally notify Council they cannot uphold full financial responsibilities for rent and outgoings.

4. That Council note should the Bega Valley Genealogy Society Incorporated give notice to vacate the Old Pambula Courthouse and Police Station building within Reserve 180066 at Pambula a further public Expression of Interest process will be conducted by Council officers and the results will be presented back to Council for consideration.

5. That Council, as Crown Land Manager of the Old Merimbula School site Reserve R84856, resolve to enter into a further five year licence agreement with the Merimbula Imlay Historical Society Incorporated for their continued occupation of the Old School House Building located on Crown Reserve 84856 at Merimbula at the annual rental fee as determined by a registered Valuer, noting a rebate may be applied once assessed against Council’s Rental Assessment and Rebate Procedure.

6. That Council, as Crown Land Manager of the Old Merimbula School site Reserve R84856, resolve to enter into a further five year licence agreement with the Merimbula Scout and Guide Associations for their occupation of the Hall and section of land at the rear of Crown Reserve 84856 at Merimbula at the annual rental fee as determined by a registered Valuer, noting a rebate may be applied once assessed against Council’s Rental Assessment and Rebate Procedure.

7. That Council authorise the General Manager and Mayor to execute the necessary documentation to formalise the above course of action.

Executive Summary

At the Council meeting of 11 November 2020, Cr Russell Fitzpatrick requested Council be provided with a report in relation to the use of Council facilities by museums, including current management arrangements, costs and possible options in relations to financial support for the important voluntary committees operating from these assets.

Background

For some years under a Museum Advisor Program Council has entered into a contractual agreement with a Museum Advisor which Museums and Galleries of NSW have provided fifty percent of the annual fee towards.

Council engages the Museum Advisor as a consultant for ten (10) days per year. The purpose of the Museum Advisors role is to undertake a survey of museums in the Bega Valley Shire Local Government Area (LGA) to identify and prioritise sector needs, keep museums informed on the availability of grants, funding, training and professional development opportunities and provide advice as required, developing or updating disaster plans, succession plan and work with target museums to ensure they all have up-to-date strategic/ forward plans in place to name a few items.

Councils Museum Advisor has commenced work on a survey of museums in the LGA to identify and prioritise sector needs and hopes to have this body of work complete and to Council by early next year. This will be the first comprehensive survey of the local museums sector ever undertaken within the Shire.

The Bega Valley Shire LGA is currently home to ten (10) public, volunteer run, not for profit historic heritage management organisations as follows:

· Ben Boyd History Centre (Private)

· Eden Killer Whale Museum (Council)

· Mary Mackillop Museum Eden (Private)

· Bega Pioneers’ Museum (Council)

· Bega Valley Genealogy Society Pambula (Council)

· Merimbula Old School Museum (Council)

· Pig and Whistle Fleet Club Tathra Wharf Museum (Council)

· Bermagui Historical Society Heritage Museum within Bermagui Community Centre (Council)

· Montreal Goldfields (Council)

· Cobargo District Museum (Private)

Councils Museum Advisor has advised that in addition to this group, there are a number of similar government run and private facilities including Davidson Whaling Station at Kiah and the Bega Cheese Heritage Centre at Bega, as well as the Monaroo Bobberrer Keeping Place at Jigamy. An additional public museum has also recently been established at Wyndham, but details about this organisation are not presently at hand.

A preliminary search within Councils electronic filing system has been undertaken and no any evidence has been found of a Section 355 Committee existing for museums, only metadata notes that indicate that documents were destroyed as part of archiving processes. Records show there was a Museums and Historical Society Committee in the early 2000’s but it is thought that once all the museum committees became incorporated entities, formal tenure arrangements were put in place for their occupation of Council owned and managed buildings across the LGA.

Captured below and attached is information relating to the Shires museums located on Council owned and managed land within the LGA for the information of Councillors.

Eden Killer Whale Museum occupied by the Eden Killer Whale Museum Management Committee Incorporated (EKWM Committee)

Council resolved at its Ordinary Meeting of 21 November 2018, when considering a request from the EKWM Committee to grant a further twenty-year lease as follows:

1. That Council receive and note the report.

2. That subject to determination of the Aboriginal Land Claim and Native Title Claim, Council as Crown Land Manager of Reserve (R62518), approve a further twenty year lease to the Eden Killer Whale Museum Management Committee Incorporated for their continued occupation of the Eden Killer Whale Museum for the annual rental fee of $3,640.00 per annum increased annually by CPI.

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

Following the resolution of Council, the issue of tenure was progressed via registration of a formal lease with EKWM committee which does not expire until 30 June 2039. As noted in the attached reported from the meeting of 21 November 2018 an updated market rental assessment was commissioned by Council in May 2017 which indicated a rental figure in the order of $13K per annum could be achieved if the museum was leased on a commercial basis. The valuation was obtained on a land only basis considering the substantial financial investment in the building by EKWM over past years.

In accordance with Council’s Management of Leases and Licences Procedure the EKWM committee will be requested to complete a rental rebate application every five years and an updated market rental valuation will be commissioned to determine the appropriate rental for the following five-year term.

The native title advice received notes the issue of the lease to EKWM committee over Lot 1 Section 6 DP 758379 and a temporary licence to EKWM committee over Lot 1 DP 48609 are acts which will or may impact native title. However, the proposed lease is a valid future act under Section 24JA of the Native Title Act 1993 (Cth) (NT Act) and the proposed licence is a valid future act under Section 24LA of the NT Act.

The EKWM building is currently listed on Councils insurance schedule for the value of $4,416,000. Council requires the EKWM committee to take out their own contents insurance as the collection is extremely valuable.

Bega Pioneers Museum occupied by Bega Valley Historical Society Incorporated (BVHS)

Council resolved at its Ordinary Meeting of 15 March 2017, when considering a request from the BVHS for the transfer of the Bega Museum asset as follows:

1. That Council approve the transfer of ownership of the Bega Pioneers’ Museum (being Lot 1 DP 787591) located at 87 Bega Street, Bega to the Bega Valley Historical Society Incorporated (the Society) for the nominal sum of $1.00.

2. That prior to any transfer, Council ensure the Society fully understand the current condition of the asset and the financial ramifications of transferring the site to their ownership.

3. That a restriction and/or covenant be registered on the Title prior to transfer in order to protect the value of the asset for provision for a public museum in Bega and prior to any future sale of the asset Council’s formal consent must be obtained.

4. That the General Manager and Mayor be authorised to execute the necessary documentation to affect this course of action.

Following the resolution of Council, officers engaged legal representatives from Council’s legal services panel to prepare the necessary documentation to affect the above resolution. In addition, an asbestos martials audit and risk assessment report was sourced to pass onto the Society to ensure they fully understood the condition of the asset and the financial ramifications of transferring the site to their ownership.

A copy of the full report from the Ordinary Meeting of 15 March 2017 is attached for the information of councillors as it details the history associated with the asset.

On 12 August 2017, formal notification was received from the BVHS advising the committee formally declined the offer to take on ownership of the asset as they were not in a financial position to proceed. No formal tenure arrangements over the site has ever been in place, therefore Council has not received any income from providing the service to date.

The BVHS obtained a Building Assessment Report from Museums and Galleries NSW in May 2015 which highlighted extensive remediation works required to the fabric of the building. Significant expenditure is required to carry out those works to protect the museum’s collection. There is currently no budget allocated to do this level of remediation works on the asset.

Given the BVHS will not be proceeding with the transfer of ownership of the Bega Pioneers’ Museum it is recommended that Council enter into a formal tenure arrangement which contains applicable indemnity and insurance clauses to ensure appropriate management of the land and asset into the future. In accordance with Councils Management of Lease and Licences Procedure a market rental valuation will need to be obtained from a registered Valuer to determine the applicable rental and BVHS will be given the opportunity to submit a rental rebate application for assessment.

The Bega Pioneers Museum is currently listed on Councils insurance schedule for the value of $2,345,000 plus $40,000 of Council contents.

Old Pambula Courthouse occupied by Bega Valley Genealogy Society Incorporated (BVGS)

Council resolved at its Ordinary Meeting of 20 May 2015, when considering a request from the BVGS to enter into a licence agreement for their continued occupation of the Old Pambula Courthouse and Police Station building located on Baddeley Reserve at Pambula as follows:

1. That Council, as Reserve Trust Manager of the Baddeley (R.180066) Reserve resolve to enter into a ten year Licence Agreement with the Bega Valley Genealogy Society Incorporated for their occupation of the Old Pambula Courthouse and Police Station building within Reserve 180066 at Pambula.

2. That authority is granted for the General Manager and/or Mayor to execute the Licence Agreement.

3. That in accordance with the requirements of the Crown Lands Act, Council obtains endorsement of Minister’s consent to the Licence.

Following the Resolution of Council, a 5-year licence agreement was issued which expired on 30 June 2020. The resolution provided Council officers with the provision to issue a further 5-year licence agreement without a further report to Council or public expression of interest process.

The report to Council of 20 May 2015 recommended the Crown Land minimum annual licence fee should apply for the first year of tenure, with an annual increase in line with CPI movements for the remainder of the licence term. It is also proposed a further rental rebate application should be submitted at the end of the third year to determine if the financial capacity of BVGS had altered and whether the minimum annual rental should still apply. BVGS were not asked to complete a new rental rebate application until the end of their 5-year licence term.

The necessary steps were taken to issue further tenure and by doing so arranged Native Title advice and an updated market rental valuation and rental rebate application. The Native Title advice found the proposed act will not affect native title, however regardless, the act impacting Reserve 180066 will comply with the applicable provisions of the NT Act being a valid future act under section 24JA.

The initial valuation provided by Opteon Property Group outlined an achievable annual market rental of $40,800. Through consultation with the Valuer amendments were made to the final valuation report which was presented in three ranges:

• Market Gross Rent Lower: $25,500 per annum could be achieved if leased on a commercial basis;

• Market Gross Rent Middle: $31,875 per annum could be achieved if leased on a commercial basis;

• Market Gross Rent Upper: $38,250 per annum could be achieved if leased on a commercial basis.

Since 2015, BVGS have been paying minimal rent with the current annual rental being $559.63 based on a 99% rental rebate assessment. As part of the renewal process, BVGS completed an updated rental rebate application and their new rental rebate was assessed as 61%. Using the lower range as outlined above, this resulted in a rental increase from $559.63 to $9,945 per annum.

As expected, correspondence was received from BVGS questioning the rental increase and a discussion took place in which it was agreed that BVGS would resubmit a revised rental rebate application to be assessed by the panel. Following the assessment, the revised rebate was determined as 83% and the subsequent rental calculated at $4,335 plus GST per annum. On this basis the BVGS were directed to the Funding Finder on Council’s website for information on additional financial support available and offered a payment arrangement.

It should be noted that the building has not been maintained during the last 5-year term to an acceptable standard which has resulted in roof leaks costing Council approximately $5,000. The building is reaching a stage where further capital investment will be required, and Council officers are in the processes of obtaining a pest inspection and asbestos report for the building to better understand the immediate needs at the site. A conservation management plan should beprepared to assist in managing the building into the future, but this is currently unfunded.

It was noted in the original rental rebate assessment completed by the BVGS that the average age range of volunteers is late 60's to 90's and they do what is physical possible keeping the building clean and tidy but that is about the extent of their capabilities. The BVGS originally completed the rental rebate assessment with a view to place more onus on Council in relation to building maintenance which therefore reduced their rebate eligibility, hence the need to resubmit the application. Whilst this allowed BVGS to score higher in the assessment it does put more maintenance responsibilities on them which is not considered a good result for the asset life of the historical building.

Although a substantial fee increase has resulted, the annual rental fee payable is still heavily subsidised to what this organisation would be paying for space elsewhere in the private rental market.

The Old Pambula Courthouse building is currently listed on Councils insurance schedule for the value of $1,050,535. Council requires the BVGS committee to take out their own contents insurance.

Old Merimbula School building occupied by Merimbula Imlay Historical Society Incorporated (MIHS)

Council resolved at its Ordinary Meeting of 6 April 2016, when considering the future occupancy arrangements at the Old Merimbula Public School site as follows:

1. That Council, as Reserve Trust Manager of the Old Merimbula School site (R84856) Reserve, resolve to enter into a further five year licence agreement with the Merimbula Imlay Historical Society Incorporated for the occupation of the Old School House Building located on Crown Reserve 84856 at Merimbula at the annual rental fee of $510.40 per annum.

2. That Council, as Reserve Trust Manager of the Old Merimbula School site (R84856) Reserve, resolve to enter into a five year licence agreement with the Merimbula Scout & Guide Associations for the continued occupation of the Old School Hall and section of land at the rear of Crown Reserve 84856 at Merimbula at the minimum annual rental fee as set by Crown Lands and currently $510.40 per annum.

3. That authority be given for the Mayor and General Manager to execute both Licence agreements.

4. That in accordance with the requirements of the Crown Lands Act, Council obtain the Minister’s formal consent to enter into both licence agreements.

Following the resolution of Council, progression with a formal licence agreement to MIHS which does not expire until 28 February 2021 was commenced.

The site has been occupied harmoniously by the MIHS and the Scouts and Guides Associations for over 25 years under Crown licence agreements which both comply with the reserve purpose of Public Buildings. Records show the museum building was erected in 1875 as a school.

The owners of Merimbula Professional Centre approached Council in 2016 to assist in facilitating temporary additional car parking on the Old Merimbula School (R84856) Reserve. It was agreed in December 2016 that Council would enter into a temporary licence agreement until such time as more permanent arrangements could be made at an alternate site. Merimbula Professional Centre proceeded with the construction of a permanent carpark on the site and the arrangement has continued since that time via a temporary licence agreement. Crown Lands have not been made aware of this arrangement as the use does not comply with the reserve purpose. A meeting has been held with representatives from Merimbula Professional Centre who have indicated they would like to retain use of the carpark but understand Councils inability to formalise their tenure for this purpose. They have suggested that the additional on-site car parking be retained for use by Museum, Scouts and Guides patrons rather than remediate the site back to its former state.

In anticipation of renewing the tenure arrangements at the site Council officers have obtained Native Title advice which found the proposed acts will affect Native Title, however, the acts impacting Reserve 84856 will comply with the applicable provisions of the NT Act being valid future acts under section 24JA.

As the proposed acts involved the construction or establishment of a public work Council was required to notify and give the opportunity to comment to the South Coast People as native title claimants and to NTSCorp Limited as the representative aboriginal body for NSW under Section 24JB(6) of the NT Act. In this regard notification was given on 29 January 2020 and the notification period expired on 26 February 2020. No comments were received.

Given the two tenures to MIHS and the Scouts and Guides Associations are due to expire on 28 February 2021 and for the reasons outlined in the attached report of 6 April 2016 in relation to direct negotiations, it is considered appropriate to offer both licensees with further tenure by way of five (5) year licence agreements without carrying out a public competition process. Note the car parking area constructed by Merimbula Professional Centre will be incorporated into the Scouts and Guides licence area for their use.

An updated market rental assessment was commissioned by Council in July 2020 which indicated a rental figure in the order of:

· Museum - $11,250K - $12,500K per annum could be achieved if leased on a commercial basis;

· Scouts and Guides site - $9,666 - $11,814 per annum could be achieved if leased on a commercial basis; and

· Carpark site - $515 - $858 per annum could be achieved if leased on a commercial basis.

The valuation was obtained on a land only basis considering the substantial financial investment by MIHS over past years. In addition, the Scouts and Guides have occupied the site since 1987 and financed the construction of the Colourbond hall at the rear of the site. Both licensees will be given the opportunity to submit a rental rebate application for assessment before any new tenure arrangement is issued.

The old Merimbula School building is currently listed on Councils insurance schedule for the value of $1,059,000. Council requires the MIHS committee to take out their own contents insurance.

Upper level of Tathra Wharf building occupied by Pig and Whistle Fleet Club Incorporated

Council resolved at its Ordinary Meeting of 13 June 2018, when considering a request from the Pig and Whistle Fleet Club Inc., to enter into a licence agreement for their continued occupation of the museum on the upper level of the Tathra Wharf building as follows:

1. That Council, as Reserve Trust Manager of the Tathra Wharf Reserve Trust (R180056), approve a further five year Licence Agreement to the Pig and Whistle Fleet Club Inc. for their continued occupation of the Museum on the upper level of the Tathra Wharf building located on Crown Reserve 180056 at Tathra for the annual rental fee of $529.10 per annum increased annually by CPI.

2. That authority be given for the General Manager and Mayor to execute the Licence Agreement.

3. That in accordance with the requirements of the Crown Lands Act 1989 (NSW), Council obtains the Minister’s formal consent to enter into the Licence Agreement.

Following the resolution of Council, a formal licence agreement was progressed with Pig and Whistle Fleet Club Inc. which does not expire until 30 April 2024.

Prior to issuing the new licence agreement a market rental assessment was commissioned by Council in May 2018 which indicated a rental figure of $2K per annum could be achieved if the site were to be leased on a commercial basis. The Pig and Whistle Fleet Club Inc. submitted a rental rebate application and achieved 67% off market rent, Crown Lands were requested to consider further rebating the market rental valuation in line with the Crown Lands minimum annual licence fee and the Pig and Whistle Fleet Club Inc. currently pay $547.80 per annum for their occupation of the site. Note the café below the museum pays full commercial rent which goes towards the financial costs associated with the operation of the building.

Prior to renewing the tenure arrangement at the site Native Title advice was obtained which found the proposed licence to Pig and Whistle Fleet Club Inc. is an act which will or may impact Native Title. However, the proposed licence is a valid future act under Section 24JA of the NT Act.

The Tathra Wharf and Associated Buildings are currently listed on Councils insurance schedule for the value of $5,591,000. Council requires the Pig and Whistle Fleet Club Inc. to take out their own contents insurance.

Office Space within Bermagui Community Centre occupied by Bermagui Historical Society Incorporated (BHS)

Council resolved at its Ordinary Meeting of 22 November 2017, when considering several licence agreement renewals as follows in relation to the Bermagui Historical Society’s occupation of space within the Bermagui Community Centre:

1. Approval of a further three year Licence to Bermagui Historical Society, Four Winds and Bega Valley Meals on Wheels Cooperative, for their continued occupation of space within the Bermagui Community Centre for the new fees proposed, to be introduced over a three year period as detailed in the table below.

*Licensee*	Previous Licence Fee (per annum)	Licence Fee in Year 1 (per annum)	Licence Fee in Year 2 (per annum)	Licence Fee in Year 3 (per annum)
Bermagui Historical Society	$518.00	$869.00	$1,738.00	$2,607.00

Following the resolution of Council, a formal licence agreement was progressed with BHS which does not expire until 28 February 2021. In anticipation of the tenure arrangements within Bermagui Community Centre all coming to an end a formal expression of interest (EOI) process is currently advertised on Vender panel and the results will be presented back to Council for consideration after 9 December 2020 when the EOI closes. This report will provide more detail to Council in relation to the Crown lease arrangement for the building.

The Bermagui Community Centre and Associated Buildings are currently listed on Councils insurance schedule for the value of $5,205,000. Council requires the Bermagui Historical Society to take out their own contents insurance.

Montreal Goldfields occupied by Montreal Goldfields Committee

Council resolved at its Ordinary Meeting of 26 August 2020, when considering formalising governance arrangements at the site as follows:

1. Adopt the Montreal Goldfields Committee Guidelines and Operations Manual (Attachment 1).

2. Note that the attachments to the Montreal Goldfields Committee Guidelines and Operations Manual may be amended by resolution of the Committee, and that amendment to the body of the Guidelines and Operations Manual requires a resolution of Council.

3. Appoint Chris Franks, Judi Hearn, Bob Hearn, Bill Southwood, Geoffrey Gieffre, Malcolm Halliday, Kerri Binstock, Marshall Binstock, Peter Baxter, Barry Virtue and Sheila Brice as Montreal Goldfields Committee members.

4. Nominate Cr Seckold as the Council representative and Cr Dodds as the alternate Council representative on the Montreal Goldfields Committee until September 2021.

A copy of the full report from the Ordinary Meeting of 26 August 2020 is attached for the information of councillors as it details the history associated with the asset.

The Montreal Goldfields is currently listed on Councils insurance schedule for the value of $395,000. Council requires the Montreal Goldfields to take out their own contents insurance.

Old Commercial Banking Company (CBC) building currently vacant

Although the CBC building is not considered as a museum as such it has significant heritage value so has been included in this report for the sack of completeness. The BVHS also previously displayed a keen interest in taking over occupation of the building and sourcing the funding required to carry out the works. Accordingly, Council resolved at its Ordinary Meeting of 27 February 2013 to grant BVHS a five-year licence. Unfortunately, due to lack of support from their membership as well as many unsuccessful Heritage and Community Building Partnership funding applications prevented the licence going ahead.

The CBC building is located on Reserve R180031 and Council is appointed as Crown Land Manager of the Reserve. The building has been a Council Managed Crown Land asset since 1987 and presents many challenges due to its age, heritage listing status and proximity to the school grounds which has seen it remain vacant since 2010. Additionally, the site the building is located on is only 162m2, which encompasses the footprint of the building only and does not provide any off-street parking. These issues, together with the lack of adequate accessibility to the building which complies with today’s standards, have prevented any further occupation of the site.

Substantial works are required to the building to allow further occupation, which include, repairs to the leaking roof, complete rebuild of the internal staircase to allow use of the second storey, upgrades to electrical wiring, upgraded access to comply with the Building Code of Australia and provision of off-street parking.

After many unsuccessful attempts to obtain grant funding to carry out the works required to allow further occupation of the building, Council resolved, at its Ordinary Meeting of 16 December 2015 as follows:

1. That Council formally write to the Minister for Crown Lands seeking in-principle consent under Section 102 of the Crown Lands Act 1989 to a sale of the old CBC building located within the Bega Reserve Trust (180031) in Auckland Street, Bega.

2. That approval of the Minister also be sought to direct the proceeds of any sale to other Reserve Trusts within the Bega area managed by the Bega Valley Shire Council.

3. That Council notify community groups to encourage them to consider the possibility of leasing the facility.

Following the Resolution of Council, a formal letter was sent to the Minister for Primary Industries and Minister for Lands and Water formally requesting consent to sell the building with the proceeds of any sale to be applied towards improvements and/or upgrades to other Council Managed Crown Reserves within the Bega area. On 17 June 2016, Council received consent from the Deputy Director General of Land and Natural Resources to progress a joint sale of the property. Council were liaising with Crown Lands about the proposal to ensure the provisions of the Crown Lands Act 1989 (NSW) were followed.

Unfortunately, due to the implications of the Crown Lands Management Act 2016 (NSW) as well as the Aboriginal Land claim lodged over the Reserve in late 2016 and Native Title claim in early 2018 the advice from Crown Lands is dealings with the property cannot be undertake until the claims have been determined.

Given the unknown timeframe for determination of the claims, Council has applied to the Crown Reserves Improvement Fund Program 2020 to fund a conservation management plan to assist Council with direction on how best to manage the building into the future. This will ensure the building does not continue to fall into disrepair and will assist Council to secure funding to remedy the identified issues.

The CBC building is currently listed on Councils insurance schedule for the value of $2,345,000 plus $40,000 of Council contents.

Options

The options available to Council are:

1. Maintain the status quo. Noting the financial implications on some of the museum committees and the poor state of some of these Council owned and managed assets as a result of current occupation arrangements.

2. Resolve to provide all museum committees with an annual rental in line with the Crown Land minimum licence fee to assist in ensuring their financial sustainability into the future. Noting Councils Management of Leases and Licences Procedure clearly states that for all leases and licences of Council owned and managed assets, Council seeks to recover either all or a proportion of the total costs of operating that facility including depreciation, maintenance, administration and improvements. The lack of income will further prevent Council from maintaining these important building assets into the future for the benefit of the community.

3. Provide a general fund contribution towards the total annual costs of operating museum facilities including depreciation, maintenance, administration and improvements.

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

Community and Stakeholder Engagement

Engagement undertaken

As part of the work undertaken by Councils Museum Advisor towards the development of a survey for museums in the LGA, nine respondent museums answered questions regarding their date of establishment which ranged between 1931 and 2019, with the majority (5) opening since 1993. The remaining museums opened during the 1930s (1) and 1970s (2).

Museum opening days are spread across the week but overall, museums are most commonly open on Thursday, Friday and Saturday. Entry fees range between free to $12.00 for adults; free to $5.00 for children; free to $12.00 for pensioners, free to gold coin donation for school groups, and free to $9.50 for other organised groups.

All museums in the Bega Valley LGA reported having a volunteer workforce, with the average number of members standing at around 38 but ranging from 8 up to 105. Only one museum in the Bega Valley LGA reported having paid staff. The remaining organisations rely on the assistance and support of the Regional Museum Advisor, co-funding by Museums and Galleries NSW and Council for a total of ten days a year.

Councils Museum Advisor confirmed local museums attract a total of more than 57,000 visitors annually.

Engagement planned

Council officers will continue to consult with museum committees and legal representatives as required to action the resolution of Council.

Financial and Resource Considerations

Council paid $3,500 on 30 June 2020 for the Museum Advisor’s annual fee under the contractual agreement in place.

There are significant costs to Council of operating each facility which includes depreciation, maintenance, land rates, outgoings, administration costs and improvements. The clear intention of Councils Rental Assessment and Rebate Procedures is that those community group entitled to a rebate are to maintain the building occupied as if they were the owner of that property with all service connections also the responsibility of the tenant, without any further financial assistance from, or cost to Council. In return, a high level of rental rebate or statutory minimum annual rental fee applies.

As evidenced by the recent building assets condition report data, these community buildings are not being maintained to a satisfactory degree, with many now in fair to poor condition. Council now finds itself in a position where it has aging building assets, with only minimal rental income received to fund works necessary to bring those assets back to a satisfactory level. Council can no longer afford to subsidise tenancies to the same degree.

Council officer time has been required to collate this report and the ongoing management of museum facilities will also need Council officer resources on a regular basis.

Legal /Policy

An Aboriginal Land Claim was lodged by Local Aboriginal Land Councils over all Crown Land in the Bega Valley Shire LGA in December 2016. Consequently, there are additional processes for Council to undertake with the Department of Industry – Lands and Water in relation to any use of Crown Land in Council’s management.

There is also a current a Native Title application (claim) lodged over all Crown Land in the Bega Valley Shire LGA by the South Coast People registered as NC2017/003 by the National Native Title Tribunal on 31 January 2018.

Council Crown Land Managers are now exempt from the operation of section 3.22 of the Crown Land Management Act 2016 (NSW) (CLM Act) during the initial transitional period of three years and prior to the preparation of a Plan of Management (PoM) to enable transitional operation, management and use of tenures. This exemption is pursuant to clause 70 of the CLM Regulations and applies to the renewal of existing licences over pre-PoM Crown land for a term not exceeding 21 years, if there are no additional permitted uses for the land, there was a licence in force over the land immediately before the repeal of the CLM Act and there are no permitted uses for the land under the arrangement that are additional to those that were permitted under the previous licence.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Council manages numerous facilities across the LGA and is expected to either gain a commercial return on those community assets or provide broad community benefit from those assets. To meet these objectives, Council has policies and procedures in place to ensure transparency and consistency in how lease/licence fees are calculated. As part of these procedures, Council periodically obtains market rental valuations as the basis for calculating rental fees. Deductions are then applied based on (for example) the type of organisation occupying the facility and the relative attribution of maintenance costs.

Councils Rental Assessment and Rebate Procedure has been developed to provide Council with an equitable, transparent and accountable management framework for determining rental rebates with clear priorities linked to Council’s strategic directions and the community’s needs. The procedure enables some form of financial contribution from community groups towards the costs associated with maintaining ownership of building assets as well ensuring Council can afford to subsidise all eligible existing and future lessees/licensees utilising Council building assets.

Environment and Climate Change

There is no environment and climate change matters associated with the proposed assignment of lease process.

Economic

Councils Museum Advisor reported that museums in the Bega Valley LGA contributed in excess of $700,000 to the economy of the region during the 2018 – 2019 financial year. Their average annual income was about $102,130. However, this ranged from $5,000 up to $650,000. If the single top earning sum of $650, 000 is removed from the calculations, the average declines significantly to less than $10,500 per year.

Risk

In determining its direction, Council should consider several risks associated with this report including but not limited to:

· Reputational risk and the community's view on how Council is handling the management and funding of museums and building assets in the Shire;

· Financial risk in relation to the ongoing liabilities related to building management whilst in Council ownership; the cost of operating these facilities; and future costs to undertake major works, should the building stay in Council ownership;

· Risk in relation to museum committees occupying Council owned and managed buildings when they may or may not have the capacity and/or capability to maintain the building; and the buildings continue to fall into a state of disrepair;

· Risk in relation to the inability of Council to provide an equitable level of rental rebate to all existing and future community organisations occupying Council owned and managed facilities;

· Risk of assets ageing and nearing the end of useful life.

Social / Cultural

Museum plays an important role in capturing the history of our Shire and the committees are all charged with the collection and preservation of aspects of our moveable cultural heritage for the benefit of current and future generations. Museum collections and exhibits inspire interest in our shared histories and help to educate our community.

The voluntary efforts of the museum committees in maintaining the Shires history and heritage over the years are certainly acknowledged and appreciated not only by Council, but the many locals and tourists who have had the opportunity to visit the museums.

Attachments

1 ⇩. Bega Valley Shire Museum information 2020

2 ⇩. Council report dated 21 November 2018 - Grant of new lease - Eden Killer Whale Museum

3 ⇩. Council report dated 15 March 2017 - Bega Pioneers Museum

4 ⇩. Council report dated 20 May 2015 - Occupation of Old Pambula Courthouse

5 ⇩. Council report dated 6 April 2016 Licence Agreements - Old Merimbula School Site

6 ⇩. Council report dated 13 June 2018 - Licence for the upper level of the Tathra Wharf Museum

7 ⇩. Council report dated 22 November 2017 - Bermagui Community Centre Licence Agreement Renewals

8 ⇩. Council report dated 16 December 2015 - Old CBC Building in Bega

9 ⇩. Council report dated 26 August 2020 - Montreal Goldfields

Council 25 November 2020

Item 11.3

11.3. Community Project Proposals

This report provides a summary of Community Project Proposals received between 30 July 2020 and 25 October 2020 for Council’s information and consideration.

Director Assets and Operations

Officer’s Recommendation

1. That Council note the report and the attached Community Project Proposal summary.

2. That Council note the proposal for the Interpretive Panels at Tathra foreshore has been given in principle support by Council, noting no further funding is available from Council.

3. That the proposal for wharf to wharf walk from Tathra to Merimbula be provided in principle support, subject to grant funding submissions, and consultation and support by all stakeholders / land managers.

4. That the proposal for Candelo John Gordon Recreational Reserve building upgrades, be provided in principle support by Council subject to external grant funding.

5. That the proposal for Berrambool Sporting Complex Australian Rules oval scoreboard upgrade, be provided in principle support to enable grant funding submissions, noting ongoing operational costs and future asset renewal by the applicant.

6. That the proposal for Barclay Street Sporting Complex Australian Rules oval scoreboard upgrade, be provided in principle support to enable grant funding submissions, noting ongoing operational costs and future asset renewal by the applicant.

7. That Council note the proposal for Towamba Playground and surrounding facilities upgrade has been provided in principle support by Council staff and is dependent on external resourcing.

8. That Council note the proposal for Tathra skatepark repairs, has been provided in principle support by Council staff and is dependent on external grant funding.

9. That the proposal for the memorial boulder at Glebe Park Lagoon Reserve be deferred pending development of a Memorials in Public Places Procedure.

10. That the proposal for beach access path at Dolphin Cove Tura Beach, be provided Council support with all costs to be funded by the applicant. The item regarding the naming of the path to be deferred to be considered after Memorials in Public Place Procedure development.

11. That the proposal for Long Point viewing be given in principle support for existing path areas subject to due diligence and Native Title assessments and relevant approvals. All project costs to be funded by the applicant.

12. That the Wonboyn Road Walkway be provided in principle support for the concept to enable further project development in consultation with Council staff with a view to keeping new assets and structures to a minimum to enable external funding applications to be submitted, and required planning approvals.

13. That it is noted that the Cobargo Build Back Better Projects include several major projects across multiple property parcels and that they are prioritised by the applicant in conjunction with relevant BVSC asset owners for submission of separate proposals for each project.

Executive Summary

The community plays an important role in helping Bega Valley Shire Council (BVSC) identify and deliver new and/or improved community facilities. The Community Project Proposal (CPP) process seeks to provide a consistent framework for Council to receive and consider a wide range of projects proposed by the community. These projects can range from minor asset renewals to major new works. Council officers have reviewed the proposals received and a Summary and Assessment Sheet is attached. A hard copy of the proposals and the summary sheet has been distributed to all Councillors. A link to the copy of the proposals and the summary sheet is https://begavalley.nsw.gov.au/page.asp?f=RES-PNI-64-48-20

Background

Council is ultimately responsible for all works on BVSC managed land including compliance; maintenance; upkeep; and safety. Regardless of the project size, all works proposed for BVSC managed land need to be considered in the context of available funding, procurement, risk management, work health and safety, environmental considerations, approvals, compliance, and ongoing maintenance and renewal. It is also important to consider how the proposed projects can link and add value to other planned Council works.

An important part of the CPP Procedure involves reporting proposals to Council; particularly where projects are complex, will result in changed use or amenity and/or will require resourcing and support from Council. Those proposals that are straight forward, not requesting funding from Council and/or are directly related to planned works, are often reviewed and approved by Council officers. This enables groups to proceed with those straightforward proposal works in a timely manner.

The level of information included in the proposal needs to be relevant to the scale and complexity of the project but at a minimum, be sufficient to allow the merits and issues of proposal/s to be understood by Council officers and Councillors. Thorough proposals will clearly show the merit of the project, outline what is being requested and identify potential issues and how they have been addressed. The initial assessment by Council officers seeks to minimise wasted effort (or expense) on proposals that may not obtain approval due to funding, planning or other reasons.

Twelve (12) submissions received between 30 July 2020 and 25 October 2020. They are:

· Interpretive Panels for Tathra Foreshore

· Wharf to Wharf Walk Tathra to Merimbula

· John Gordon Recreational Reserve building upgrades

· Berrambool Australian Rules Football scoreboard upgrade

· Barclay Street Sporting Complex Australian Rules Football scoreboard upgrade

· Towamba Park playground upgrade

· Tathra skatepark repairs

· Wires Memorial Boulder Glebe Park Lagoon Bega

· Beach Access Path and naming of path at Dolphin Cove Drive Tura Beach

· Accessible viewing platform at Long Point Merimbula

· Wonboyn Road Walkway

· Cobargo Build Back Better project

Future proposals will continue to be presented on a quarterly basis for Council consideration.

Proposal Consideration and Assessment

Attached to this report is a summary and assessment of the CPPs received including comments and recommendations. The assessment provides a rating against the following project items:

· Asset Renewal. Is it renewing an existing asset or an upgrade? Is the work linking to a required renewal from asset register?

· Provision/Use/Value. Is the project relevant to current community needs? Will the facilities be well used? Will the community be getting good value? Is the opportunity cost to other projects and groups fair and acceptable?

· Links to other plans and works. Are the works linked to adopted Strategic Plans, Facility Management Plans or asset renewals or planned maintenance programs?

· Project Scale. How large is the project?

· Project Approval Complexity. Will the project require Environmental and Heritage approvals? Cultural Heritage approvals? Crown Land approvals? Council Development Application approval?

· Requested BVSC Funding. Are funds requested from Council? Are related funds allocated in budgets for asset renewals or maintenance? Is there good value in the funding level requested?

· Likely BVSC Involvement. Is labour or material required to assist the project? Are resources such as grant submission assistance required? Is direction required in the approvals processes?

· Ongoing Operations. What will be the cost to Council to maintain the asset?

Options

The challenge in considering CPPs is to give them the consideration they deserve, consider risks and work out where they fit with other planned and programmed works, particularly if the proposal requests a contribution from Council. Council has an option to fund all requests; however, this will come at the expense of other required and planned asset renewal and Capital Works Programs. Project management time is also an important consideration as promoting or adding a project to current workloads will influence the completion of other planned and programmed projects.

Realistically, Council does not have the resources to meet all requests in terms of capital funding, project management or ongoing asset management. There is not a set amount put aside to support Community Project Proposals. An important benefit of the CPP process is that Council can consider these aspects, what is a reasonable provision of assets and provide relevant direction and support which then better enables the community groups to develop their project and look to the most realistic methods for delivery of well utilised assets into the future.

Community and Stakeholder Engagement

In developing the CPP Procedure, consultation was undertaken with - Council's Access and Inclusion Committee, the S355 Sportsground Committee and a workshop involving representatives of service organisations from across the Shire.

The CPP Form includes a section on stakeholder engagement in which the applicant can identify the consultation they have undertaken with other users and neighbours and feedback they have received in the development of their proposal. Some proposals will require further community consultation as the project develops.

The CPP Procedure and Application Form are available on Council’s website with the application form now available as an online form.

Engagement planned

Applicants are notified of the outcome of their proposals and are forwarded a copy of the Council resolution. A Council staff member is identified as a point of contract for the project or other related information.

Financial and Resource Considerations

Council has not budgeted funds to support CPPs; however, some proposals may align with the BVSC maintenance programs, scheduled asset renewals or grant programs. The level of resourcing and contribution sought from Council is an important aspect for consideration.

Council resources are limited and favouring any one project over another is likely to affect or defer the delivery of other planned and programmed works. That is not to say a BVSC contribution is not possible. This is particularly the case where a project links to asset renewals and maintenance programs and the BVSC contribution represents ‘good value’. However, this needs to be subject to funding being available.

Committees, community groups and volunteers often seek funding and grant opportunities to support their project proposal. The first step is gaining Council support for works on Council managed land. This also helps to see the project scope is clear and complete and the resources identified are sufficient to complete the works.

Project costs and amounts requested from BVSC are included in the attached Summary Sheet.

The Cobargo build back better project includes several new assets and as well as significant new plantings that will require maintenance. Given the limited timeframe since receiving the CPP and the limited information included in the submission the whole of life cost of all the components has not been quantified.

Legal /Policy

Council’s Procedure 4.01.3 Community Project Proposals is published on the Council website.

Works on public land can trigger legislative requirements related to environment and heritage, access and Building Code compliance, planning and development approvals and in some instances, approvals from the landowner or manager.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Relevant Delivery Program 2017 – 2021 Goals are:

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

Goal 12: Our Council is financially sustainable, and services and facilities meet community need.

Operational / Asset Management Plan

Council’s annual Operational Plan is developed alongside a Resourcing Strategy which outlines how actions and activities will be financed, assets managed, and services delivered.

Asset management and Capital Works Programs are primarily based on renewal and improving existing assets (e.g. replacing existing aging assets). A large majority of projects proposed by the community relate to new works or significant upgrades of existing assets and as such are not included in Capital Works Programs.

Individually most projects have merit, reflect current community interests and deserve consideration. However, Council needs to be aware that continuing to expand its asset inventory comes at a future cost in terms of both ongoing operations and future asset renewals.

The Project Summary Sheet comments identify if the project is a direct renewal of an existing asset, an upgrade of an existing asset or is developing a new asset.

Environment and Climate Change

As part of community project proposal process applicants are expected to outline any environmental benefits or risks associated with their proposals. It is noted that some of the projects presented in this report are aimed at responding to the impacts of recent bushfires and increasing plantings in parts of the Shire.

Economic

The community project proposals outline to varying degrees the economic benefits associated with the respective proposals. Several of the proposals presented in this report are tourism related and aimed at enhancing the tourism experience within the Shire.

Risk

A key aspect of the CPP Procedure and process is aimed at mitigating risk. Examples of the risks that need consideration in relation to any project are:

· The costs and considerations surrounding BVSC’s ongoing asset management/liability.

· Project oversight and the need to gain relevant approvals and compliance.

· The costs and expectations associated with the ongoing operations, maintenance future renewal of any new asset.

· Possible shortfalls in proposal cost estimates.

· Potential expectations that BVSC will cover any potential project shortfalls.

Social / Cultural

The community project proposal process provides an opportunity for community groups to present ideas and projects for consideration that enhance the social and cultural richness of our Shire. The projects referred to in this report outline the social and cultural benefits of the respective projects to varying degrees.

Attachments

1 ⇩. Community Project Proposal Summary Sheet 25 November 2020

Council 25 November 2020

Item 11.4

11.4. RFT 2021/38 Structural Stormwater Relining and Cleaning, Bega and Surrounds

This report details the outcome of RFT 2021/38, Structural Stormwater Relining and Cleaning, Bega and surrounds.

Director Assets and Operations

Officer’s Recommendation

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

2. That Council accept the tender for RFT 2021/38, Structural Stormwater Relining and Cleaning, Bega and surrounds from [to be inserted] for $[to be inserted].

3. That Council delegate to the General Manager authority to award the tender and execute all necessary documentation.

4. That Council officers advise unsuccessful tenderers of Council’s decision.

Executive Summary

This report presents the outcome of RFT 2021/38 Structural Stormwater Relining and Cleaning, Bega and surrounds, the aim of the project is to extend the useful life of Council’s existing stormwater assets with cure in-situ structural liners solution.

Background

During routine annual stormwater CCTV condition inspections conducted in 2017, several critical pipe defects were detected in a variety of existing stormwater pipes in residential areas of Bega.

Some of the stormwater lines pass under residential properties that preclude more traditional techniques of pipe replacement or renewal using excavation. Relining is desired to maintain not only the function of the channel but also to provide minimal disturbance to the residents nearby.

Due to the sensitive nature of the stormwater lines, traditional excavation and replacement techniques can cause increased inconvenience from extended project duration to the community from cut and cover techniques.

In some instances, this is just simply not possible as in some cases the stormwater lines pass through private property and will result in damage to private structures. Operational issues also arise with maintaining the existing function of a live stormwater line draining a substantial catchment during construction. Accordingly, trenchless techniques were identified for rehabilitation due to their ability for shorter duration and reduced project footprint.

Tender

RFT 2021/38 Structural Stormwater Relining and Cleaning, Bega and surrounds were released for public tender via Vender Panel on 15 September 2020.

The RFT closed on 7 October 2020, and submissions were received via Vender Panel from the following:

- M.Tucker & Sons Pty Ltd

- Interflow Pty Ltd

- Downer PipeTech Pty Ltd

- TCD Services Australia

Tender submissions were evaluated in accordance with the approved tender evaluation plan, and the outcomes and recommendations are detailed in the attached confidential memorandum.

Options

For the renewal of these assets, the following options were assessed;

1. Do Nothing;

2. Traditional method of dig up and replace; and

3. Structural Relining.

Option 1: was not deemed a feasible option as this could result in total assets failure damaging both public and private assets.

Option 2: was not a feasible option as the stormwater lines pass through residential blocks.

Option 3: provides the least disturbance to residents and has been proven to be a cost effective, low impact method of repair on stormwater infrastructure.

Community and Stakeholder Engagement

Engagement undertaken

No community engagement has occurred. Internal stakeholder consultation has taken place to refine the scope and ensure the best value for money regarding the most appropriate repair methods given the engineering constraints associated with asset renewals through residential properties.

Engagement planned

Local stakeholder engagement will occur during the project delivery phase through a variety of traditional and electronic media to those properties impacted by the proposed works.

Financial and Resource Considerations

The table below provides detail of the project budgets and funding sources associated with project:

Item	$ Excl GST
Expenditure Detail
Asset 58097, Complete reline 750mm Ø	Confidential
Asset 58401, Complete reline 900mm Ø	Confidential
Asset 58417, 750mm Ø repairs as noted in scope.	Confidential
Asset 58543, Complete reline 750mm Ø	Confidential
Asset 58546, Complete reline 750mm Ø	Confidential
Asset 66069, Complete reline 525mm Ø	Confidential
Asset 58588, Complete reline 375mm Ø	Confidential
Asset 57983, 57984, Clean, provide CCTV inspection report including condition rating to WSAA Code/IPWEA Practice note 5 v2 2015 Stormwater	Confidential
Total Expenditure	Refer to confidential Memo (sum of all costs)

Source of Funds
General Fund - Transport Capital Delivery Plan	$ 387,500
Stormwater Charges	$ 73,000
Total income available	$460,500

Total Project Capital Cost	Confidential
Total Available Construction Funding	$460,500
Project Funding Shortfall	Confidential (the expected expenditure is within the available project funding)

Legal /Policy

The tender process complied with the Local Government Act 1993.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

This project aligns with the Community Strategic Plan, Outcome 5: Connected Communities:

‘Goal 10: We have a network of good quality roads, footpaths and cycleways connecting communities throughout the Shire and beyond ‘

It is a key deliverable in the Transport Capital Delivery Plan and the stormwater lines in question are key assets in draining multiple residential catchments within Bega.

Their performance and condition is critical to maintain adequate upstream network function and also network function further down-stream draining into Kisses Lagoon.

Trenchless relining techniques can provide Council with a modern equivalent engineering asset at a fraction of the cost of traditional techniques of complete pipe replacement whilst minimising inconvenience to the community.

Environment and Climate Change

By repairing the damaged infrastructure further deterioration of the concrete pipes will be prevented, eliminating debris from the damaged pipes being dislodged during storm events and floating downstream.

If the assets are left to deteriorate, they will impact on both the upstream and downstream environments. Failure in the system could result in an imbalance of water flows, too much in the upstream network would result in environmental damage and private properties being inundated with water in high flow events. Not enough flow into the downstream could result in the natural drainage lines becoming silted up or overgrown with the higher velocities of the water no longer present to naturally clean them.

The structural relining proposed in this recommendation provides a low environmental impact for repair works compared to traditional methods of having to exhume the existing damaged concrete pipes then replace them with new ones.

Economic

Localised minor economic benefits are likely to result as a result of the project and tender being accepted. The preferred tenderer will consume local goods and services during the project delivery.

Risk

If the assets are left without maintenance this could result in a catastrophic failure of the stormwater assets, once this occurs the currently recommended repair method is no longer valid. This would then result in the traditional method of exhuming the failed pipes which also creates large disturbances to the residents as well as increasing the construction disturbance footprint significantly.

Social / Cultural

Although a regular maintenance activity keeping our stormwater system operational is important to the quality of urban and residential communities.

Attachments

1 . Confidential memo RFT 2021-38 Structural Stormwater Relining and Cleaning, Bega and surrounds (Confidential - As this attachment contains commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret as per Section 10A(2)(d) of the Local Government Act 1993.

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

Council 25 November 2020

Item 11.5

11.5. Merimbula Airport - Infrastructure Upgrades Progress Report

This report provides an update to Council on the progress of the key infrastructure upgrade projects at Merimbula Airport

Director Assets and Operations

Officer’s Recommendation

1. That Council receive and note this report on the update and progress of the key infrastructure projects at Merimbula Airport.

2. That Council note and endorse the program and packaging strategy for the delivery of the key infrastructure projects at Merimbula Airport.

3. That Council note the current projected funding shortfall for the Runway Extension Project and actively lobby the State and Federal Government to assist in funding this gap.

4. That Council note the impacts of the Bio-Diversity Offsets on the project and actively lobby the State Government to cover this cost of the project.

5. That Council note the current project risks and mitigation for the delivery of these key infrastructure projects at Merimbula Airport.

6. That Council endorse the previously resolved loans program for the Airport Terminal Upgrade of $2.0m and seek to further increase the loan by $2.8m for the Runway Extension shortfall to $4.8m to be funded by the existing airport infrastructure Special Rate Variation.

7. Council advocate to the Federal Government through the Department of Home Affairs that Merimbula Airport remain a Tier 3 Airport and remain exempt from security screening,

8. That Council seek the Federal Government to omit the requirement of the passenger and screening equipment for the current funding deed.

9. That Council continue to lobby the State and Federal Government to adopt a sustainable model for security screening of Regional Airport that cover both the capital and ongoing operational costs of screening.

Executive Summary

This report provides an update to Council on the progress of the key three infrastructure upgrade projects at Merimbula Airport:

1. Runway Extension

2. General Aviation & Commercial Precinct

3. Existing Runway Overlay

The report provides further detail on the delivery strategy and some of the project issues and constraints which will need to be resolved moving forward which include:

- Impacts of the Bio-Diversity and Fisheries Offsets on the project budget.

- Impacts of Aboriginal Heritage on the project delivery program.

- Programming and packaging strategy for the delivery of the project.

- Current project estimates and available funding including the $2.83m funding shortfall for the runway extension.

- Current project risks and proposed mitigation.

- Drawing down agreed loan for the terminal works and increasing the amount to cover funds expended, the repayments to be covered by the existing airport infrastructure Special Rate Variation.

- Impacts of passenger and baggage screening at Merimbula Airport and that Council continue to lobby the State and Federal Government to adopt a sustainable model for security screening of Regional Airport that cover both the capital and ongoing operational costs of screening

Background

Bega Valley Shire Council have been the recipients of several State and Federal funding grants to deliver key infrastructure upgrades to Merimbula Airport which are detailed below:

- Terminal Upgrade – Federal Government Community Development Grant - $1,201,968 – May 2016 with a $1,200,000 BVSC Co-contribution.

- Runway Extension – NSW State Government Funding – Restart NSW – Regional Tourism Infrastructure Program - $4,391,040 – October 2016.

- General Aviation & Commercial Precinct – NSW State Government – Drought Stimulus Package - $4,000,000 – December 2019.

- Existing Runway Overlay – Federal Government - Regional Airports Program Grants – Round 1 - $4,500,000 – June 2020 with a $63,000 BVSC Co-Contribution.

This report provides an update on the progress of the key projects currently to be completed outlining their current status, budget update and outline any key issues and constraints.

Terminal Upgrade

Scope:

The extension of the Merimbula Airport terminal is being undertaken in order to permit the installation and operation of security screening. The project included the extension of the existing building to accommodate security plant and equipment and airside waiting areas for passengers after screening.

Project Deliverables:

1. Construction of departure terminal of at least 70sqm comprising of:

§ Secure luggage holding area of a lease 50sqm

§ Installation of at least one set of scanning plant and associated luggage handling plant

§ Temporary storage area for outbound luggage after scanning

§ Installation of least one set of scanning equipment for carry-on luggage

§ Installation of at least one set of explosives detection plant for carry-on luggage

§ Installation of seating for at least 50 people

2. Construction of arrival terminal for a least 40sqm comprising of:

§ Passenger lounge for at least 10 people

§ Inbound luggage arrival area

§ Inbound air freight service area; and

§ Tourism interpretation centre

3. Expansion of existing carpark to accommodate at least 70 vehicles

Progress:

The Terminal works also included the following additional life cycle and infrastructure upgrade works in the existing building to ensure its compatibility with the extension, making it fit for purpose for the change in operational arrangements that took effect in 2019, and improve accessibility, safety and legislative compliance, including:

• removal and replacement of existing asbestos flooring and roofing;

§ refurbishment of the administration area and upgrades to Information Technology (IT) infrastructure;

• kitchen refurbishment to meet current standards;

• re-flooring and repainting of the existing building;

• upgrading of landscaping in the terminal areas unaffected by the extension; 30

• extension of the existing carpark; and

• installation of automatic doors to the existing entry.

The Council Report of the 30 January 2019 identified that the Terminal Upgrades would cost $4.4m and the additional $2.0m would be funded by a loan to be repaid by income generated by the Airport SRV.

The terminal building has been designed and all necessary building infrastructure is currently in place to allow for the future installation of the passenger and baggage screening equipment and the impacts of screening is further discussed in this report.

The terminal extension works were completed and the officially opening by the Deputy Prime Minister on the 18^th December 2019.

Council are currently in negotiations with the Federal Government to vary the Funding deed to remove the requirement of the provision of the passenger and baggage screening equipment until this occurs not all Federal funding can be claimed by Council.

It is estimated that the cost of purchasing screening equipment would be approximately $900,000. The current funding deed places an expectation that this be undertaken and all of the financial information in this report has been based on the assumption that screening equipment won’t be installed and that Council will be successful in negotiating that out of the existing funding deed.

Runway Extension

Scope:

Extend the existing runway length so that it is fully compliant for maximum take-off weight for ATR 72 and Q400 Aircraft.

Project Deliverables:

1. Stage 1 – Design and Construction of a 120m long runway “starter extension” at each end of the existing runway pavement (northern and southern ends of the existing runway) and retains the existing point of take-off and landing.

2. Stage 2 – Development Approval of the of an additional 80m extension to both the northern and southern ends of the runway and retains the existing point of take-off and landing. This stage of the project may be as close as 10 or far away as 25-30 years, as it is dependent upon demand.

Progress:

- Starter Extension model was developed in consultation with Civil Aviation Safety Authority (CASA) in consideration of relevant aviation legislation.

- The planning approval pathway for the project is the SEPP (State and Regional Development) 2011 – Schedule 7 – Regionally significant development

- Secretary's Environmental Assessment Requirements (SEARs) for the project was issued in February 2018

- An Environment Impact Statement (EIS) was prepared in accordance with the SEARs for the project.

- Development Application (DA) was submitted along with the Environment Impact Statement (EIS) in October 2019.

- The DA was placed on public exhibition during Summer 2019 (December 2019 – February 2020)

- In response to Referral Agencies request additional consultation and environmental studies were undertaken in 2020 including:

o Development of Water Quality Management Plan

o Development of Acid Sulphate Soils Management Plan (ASSMP)

o Application for Aboriginal Heritage Impact Permit (AHIP)

o Additional Ecology studies to support the Biodiversity Offsets Strategy

o Australian Noise Exposure Forecast (ANEF) Studies and Assessment

o Traffic Impact Studies

o Consultation with Oyster Farmers in Merimbula Lake

o Consultation with various NSW Government Departments including; Heritage NSW, Fisheries, EPA and DPIE.

- Submission Report responding to referral agencies and public comments was lodged in October 2020.

- Further public exhibition of Submission Report is to be undertaken during November and December for a 28-day period.

- Joint Regional Planning Panel (JRRP) are scheduled to consider the matter in January and February 2021.

General Aviation & Commercial Precinct

Scope:

Provision of additional general aviation infrastructure (taxiways, vehicle access, stormwater services) to permit the relocation of general aviation activity away from the secure areas that will be required for ATR72 and Dash8 Q400 aircraft.

Expand the extent of general aviation capability in support of the expansion of tourism, and expand the commercial development of the site in support of the airport’s operation

Project Deliverables:

1. Development of a fully coordinated design for the staged implementation of the General Aviation Precinct

2. Staged provision of General Aviation airside infrastructure to limit of current funding

3. Staged provision of a range of fully serviced leasehold hold sites for the future development of general aviation precinct to limit of current funding

4. Staged provision of landside infrastructure to service the leasehold sites to the limit of current funding

Progress:

- Site surveys and investigations have been completed these include traffic studies, geotechnical investigations, service location identification, aboriginal due diligence survey, contour and feature surveys.

- Civil design has been developed to maximise yield of general aviation leasehold sites in accordance with Masterplan and site constraints in accordance with relevant aviation legislation and the current airport operational requirements.

- Consultation has occurred with the existing General Aviation User Group via a series of workshops in which tenure option, layout and mix of site and the general arrangement of the precinct.

- A market rental valuation assessment for the general aviation precinct for a land only commercial lease sites, proposed individual parking spaces and light aircraft tie down areas has been completed to inform rental rates for the precinct.

- A design guide to support the site presentation, lease management and development approvals is being developed with the assistance of the terminal extension architect and reference to similar guides at other regional airports.

- The Review of Environmental Factors (REF) is well advanced and will support the Development Application.

- As part of the REF, the Aboriginal Due Diligence survey has identified several areas of the General Aviation Precinct footprint which will required the issue of an Aboriginal Heritage Impact Permit (AHIP) prior to works commencing on site.

- The airside components (taxiways, aprons and associated infrastructure) are considered exempt development and are permitted without consent under the Infrastructure SEPP.

- The landside components (roadway, intersections with Arthur Kaine Drive and the commercial lease sites) will be subject to Development Application process which is to be submitted in November 2020.

- The Civil Design package is nearing completion to allow the works to be tendered once the Development Application has been considered and approval granted.

Existing Runway Overlay

Scope:

The existing runway, taxiway and apron pavement is not formally rated for SF340 aircraft and operational use of the runway significant distress has occurred under SF340 operations. This has required a significant number of disruptive repairs to be affected in recent years.

Overlay and strengthening of existing runway, taxiway and aprons to increase the current pavement classification to allow unrestricted SF 340 and unrestricted Q400 operations.

Project Deliverables:

1. Overlay and strengthening of existing runway, taxiway and aprons to:

a. Increase the pavement strength;

b. Protect the existing upper base course;

c. Remediate the wearing surface; and

d. Provide minor shape correction.

Progress:

- Existing pavements investigations, a combination of intrusive and non-destructive geotechnical testing to determine current strength and performance.

o A non-destructive falling weight deflectometer (FWD) survey

o Intrusive geotechnical excavations and laboratory testing of recovered pavement and subgrade samples.

- Specialist runway survey and geometric design of existing runway to determine crossfall and longitudinal alignment conformance for a fully conforming runway against aviation legislation

- A design option review has been completed to compare the technically viable options for runway strengthening which included various option utilising an asphalt overlay and foamed bitumen seal.

- In consideration of the available project budget it has been determined that the Foamed Bitumen is the most appropriate overlay option and various geometric design are being considered in parallel to the operational preference to keep the runway open during the upgrade works.

- During the Aboriginal Due Diligence survey artefacts were found on the existing stockpile sites and will required the issue of an Aboriginal Heritage Impact Permit (AHIP) prior to works commencing on site.

Program and Packaging

A comprehensive review of the delivery methodology including tender packaging and programming has been undertaken across all three projects with Council Staff and specialist Aviation Consultants.

Whilst all three projects have clearly defined project budgets, scopes and objectives the works are proposed to be delivered as one large program. The packaging of the various work items requires a balance between the procurement efficiency associated with managing only one overall contract, with the ability to manage and control the various elements of work, particularly those that are critical to the technical and operational requirements of the airport.

The Program of works can generally be split into the following key components:

- Southern runway extension. Including the construction of a runway strip embankment and a new starter-extension, matching into the existing runway threshold.

- Northern runway extension. Including the construction of new runway pavement, matching into the existing runway threshold.

- Existing pavement strengthening. Granular shape correction and foamed bitumen stabilisation of the existing runway, taxiway and apron pavements.

- GA Apron. Including airside and landside elements, including tie-ins to the existing apron and the runway.

- Ancillary works. Including extension of the airfield lighting system, adjustments to existing airfield lighting, flank regarding and re-linemarking on completion.

As a result, the following principles were the basis for determining the recommended packaging of the various works items:

1. Combining elements of work that are likely to be delivered by the same cohort of construction contractors, to increase the efficiency and provide some economy of scale.

2. Separating elements of work that are likely to be delivered under time-based airport/runway closures, from those that are to be delivered under continuous and non-critical duration displaced thresholds, or otherwise outside of the operational pavement areas.

3. Separating elements of work that have critical technical requirements and/or higher technical risk, so allow more direct control of construction contractors that are focussed on their specialised scope of work.

The environmental and associated approval timeframes, and their impact on the ability to commence the various work items, was also considered. The management of acid sulphate soils and water quality in the area of the southern runway extension into the wetlands is a critical requirement. As are the Aboriginal heritage permits covering the whole of the airport site. Although normal Development Applications are not normally required for airside work, they are required for the southern runway extension (due to the sensitive wetland environment) and for the landside portion of the GA development (because this is not airside).

Balancing the above, three packages of work have been identified to be tendered out to market:

Package 1. Southern end runway extension embankment. This work is dominated by earthworks in fill within the wetland area. It is technically critical, with significant engineering risk, including the potential for differential settlement. It is also environmentally sensitive. To reduce these risks, the work is desired to be delivered as far ahead of the other works as possible and by a contractor focussed on achieving the strict environmental and engineering requirements.

Package 2. General civil work. This includes the granular base, temporary surface seal, lighting infrastructure, drainage and other general services and flank filling for the GA apron and both runway extensions. The work spans both airside and landside areas, with interfaces to both existing runway thresholds, the existing runway and apron, as well as being on top of the proposed southern end embankment.

However, it is all generally expected to be managed with minimal operational impact on the current airfield system and is mainly expected to be delivered under ongoing displaced thresholds or outside of the operational airfield area. To ensure the time-critical airside work is not delayed by challenges associated with any ‘landside’ scope items, an ‘airside’ portion will be defined separately to the general completion requirements and milestones.

Package 3. Existing pavement stabilisation and final sealing. This work will be completed during either daily/nightly or continuous runway closure, both of which have significant impact on the operation of the airport. The two work elements (stabilisation and sealing) are also likely to be performed by the same cohort of construction contractors, which are different from the Package 1/Package 2 contractors. Therefore, this package is proposed to be separated from the others to ensure that the contractor is focussed on minimising the operational impact on the airport and on the high-quality delivery of their specialised scope.

The attached table summarises the scope and target milestones for each Package. The following critical time-based issues are noted:

Security Screening

Historically Merimbula Airport has been exempt from both Passenger and Baggage Screening requirements, however in February 2020, amendments to the Aviation Transport Security Regulations (ATSR) changed the screening thresholds at airports across Australia and moved from one based upon aircraft weight to one based on aircraft seating capacity in combination with average passenger departures.

This change to the ATSR and the commencement of RPT flights by QantasLink in December may trigger the requirement for screening to be implemented at Merimbula Airport. There are several examples of other airports across Australia where exemptions have been granted by the Department of Home Affairs and Council should be advocating for the same exemptions to apply at Merimbula Airport.

Merimbula Airport has the necessary building infrastructure in place as part of the Terminal upgrade works to allow for the rapid installation of passenger and baggage screening should it be required and it is recommended that Council do not seek to purchase the equipment but rather look to a leasing or hire arrangement due to the highly specialised nature of the equipment, changing technologies and costs to maintain and calibrate.

The largest costs in screening of baggage and passengers comes with the operational requirements to adhere to the ATSR which could include an additional workforce of four people per shift to cover the pre COVD-19, 35 flight per week and meet the relevant legislative requirements. These staffing costs coupled with ongoing training and compliance would mean that costs would either need to be absorbed by Council or passed onto the airlines or passengers through increases in fees and charges impacting on the viability of RPT travel in Merimbula. It is estimated that operational costs of screening equipment could be in excess of $600,000 which would equate to approximately $10 per passenger based on historical pre-covid passenger numbers. This estimate of cost is for the labour component of operating screening equipment and does not include any depreciation expense should Council purchase screening equipment or alternatively any equipment lease costs.

The Federal Government has recently sought feedback on the Industry Discussion Paper the Sustainable Security Screening at Regional Airports, it is acknowledged the importance and crucial role security screening play in air travel in Australia but the implications of deploying security screening to regional airports is both unique and difficult.

The factors affecting regional remote airports such as low passenger numbers and flight volumes, the remote location, access to suitably trained staff and the high level of initial capital investment and the changing technology and regulatory requirements for security screening coupled with the ongoing operating costs all impact on the ongoing viability of providing Regular Passenger Transport (RPT) operations of regional airports such as Merimbula.

Therefore, it is recommended that Council should lobby the Federal Government and continue to work with the Department of Home Affairs for Merimbula Airport to remain a Tier 3 Airport and exempt from passenger screening. This should be the case at least until the impacts of COVID-19 have passed and our operations return to pre-COVID-19 levels and a sustainable model for screening is adopted across Australia.

It is recommended that Council be fully supportive of the initiative of the Federal Government in designing a long-term, sustainable way to address regional security screening costs to ensure that Regional Airports both remain affordable for the use of our community and do not become a larger financial burden on Council.

As such if security screening is required to be implemented at Merimbula Airport, Council should seek a direct funding model from either the State of Federal Government to cover the actual cost of security screening for both the initial capital outlay for the required equipment and more importantly for the ongoing operational costs to implement security screening including the ongoing maintenance and direct staffing costs of its implementation.

Options

A range of design and engineering options have been considered in the development of the project scope and project deliverables for each of the three projects in consideration of the available project budgets and environmental and engineering constraints.

The majority of the design decisions have been predicated on the upgrade of Merimbula Airport to allow for unrestricted operation of both the ATR 72 and Q400 Aircraft in relation to the relevant aviation safety legislation and consultation with CASA.

Community and Stakeholder Engagement

Considerable community and stakeholder engagement has taken place in both the initial funding application phase to secure the funding for the projects to proceed and throughout the scoping, design and approval phases for all three projects.

Engagement undertaken

Community and Stakeholder consultation has occurred in the development of the Runway Extension project during the preparation of the EIS for the project where a key requirement is a demonstrated community consultation plan and this will be followed up with a further public exhibition period in November and December 2020.

Dedicated consultation has also occurred with the Merimbula Lake Oyster growers as a key stakeholder in the project to ensure any impacts are mitigated during the delivery phase of the project

A series of workshop have been held with the General Aviation stakeholders of the airport to development the GA design.

Extensive engagement has also occurred at all three levels of Government in developing the project design and EIS submission though various referrals and approvals.

Engagement planned

Further engagement is planned once the Development Application for the GA precinct is submitted along with further community updates via BVSC’s webpage, media releases and local media channels as the project proceed into the delivery phase.

Ongoing consultation will also occur with the various State and Federal Agencies during the construction and delivery phase in accordance with Development Approval Conditions of Consent.

Financial and Resource Considerations

The funding for the three Projects is a combination of State and Federal funding grants and various co-contribution’s by Council in accordance with the various funding deeds.

It is important to note as previously outlined above that the below figures do not account for the cost of screening equipment. The terminal costs include the structure required to support screening equipment, however the additional capital cost of screening equipment is estimated at $900,000

Item	$ Excl GST
Expenditure Detail
Terminal Upgrades	$4.4m
Runway Extension Estimate	$7.22m
General Aviation & Commercial Precinct Estimate	$4.62m
Existing Runway Overlay Estimate	$4.50m
Total Expenditure	$20.74m

Source of Funds
Fed Govt – Community Development Grant	$1.2m
BVSC – Co Contribution (Terminal)	$1.2m
BVSC – Loan (repaid by Airport SRV)	$2.0m (note this loan amount is yet to be drawn down)
NSW Govt - Restart	$4.39m
NSW Govt – Drought Stimulus Package	$4.00m
Fed Govt – Regional Airports Programs	$4.50m
BVSC – Co-Contribution (GA Precinct)	$0.63m
Total income available	$17.92m

Total Project Capital Cost	$20.44m
Total Available Construction Funding	$17.92m
Project Funding Shortfall	$2.82m

Currently the runway extension project is around $2.82m over the current available funding this is a combination of several factors including:

- $1.0m allowance for the bio-diversity and fisheries offsets. (The Biodiversity Conservation Act 2016 (BC Act) commenced on 25 August 2017 after the funding for the runway was announced and was therefore not considered in the initial project estimates)

- $0.6m in additional environmental studies associated with the preparation of the EIS including a range of additional environmental studies not initially allowed for at the time of accepting the funding.

- $1.23m additional costs in engineering post geotechnical investigation and impacts of the presence of acid sulphate soils and an escalation in construction costs from the October 2016 funding announcement

At this stage the $2.82m gap in funding for the Runway Extension is yet to be funded and it is recommended that lobbying at both the state and Federal level is undertaken to source this funding or Council investigate a loan to fund the shortfall as there is no real ability to cut scope or further value engineer on a runway construction project due to the strict legislation surrounding compliance for runways and the associated risk.

Council also has yet to draw down the loan resolved by Council for the Terminal works. This was originally resolved as $2.0m to be drawn down in the 2019/20 year. The loan is to be repaid by the current Special Rate Variation. The terminal works were completed and the building opened in December 2019.

The payments for the works were paid out of the General Fund with the expectation that the loan would be drawn down in June 2020. This did not progress as Council’s long-term financial plan was not adopted at that time.

It is proposed that the additional cost of the runway extension is also to be funded by loan and increased by $2.8m to $4.8m. This loan when drawn down reinstates Council’s cash position drawn down to support the terminal works.

The overall cost for the delivery of the entire General Aviation and Commercial is around $7.6m with the aim to have a staged delivery to match the currently available funding with further stages to be developed as funding permits.

The Existing Runway Overlay engineering solution has been adjusted to suit the currently available funding, the 2013 runway upgrade reinstated symmetrical crossfall to the runway, which was a significant improvement on the pre-2013 shape. This Runway Overlay provides the opportunity to significantly improve the crossfalls and the longitudinal shape.

It is expected that a future resurfacing, most likely by an asphalt overlay will be required nominally around 2032, which would then achieve full compliance of the runway at that time.

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts	$ Excl GST
Capital Investment (Terminal Upgrade)	$4.4m
Capital Investment (Runway Extension)	$7.22m
Capital Investment (General Aviation)	$4.62m
Renewal (Existing Runway Overlay)	$4.50m
Annual maintenance and operational costs	circa $600k (excluding screening)
Depreciation costs	T.B.C
User charges (annual income)	Circa $600k

Due to the nature of airports and need to fully comply with aviation legislation they will always require ongoing maintenance and capital upgrades and increasing the runway will invariably increase both the operational and deprecation cots of the asset.

Merimbula Airport seeks to offset the cost of operating and maintaining the airport through user charges via the published fees and charges on Regular Transport Providers (RPT) through passenger landing fees and airport and parking charges for both recreational and commercial aircraft usage and leases and licences for the use of airport land.

Income received from RPT services is directly proportional to passenger numbers at Merimbula Airport, Council currently receives ‘passenger head tax’ from all passengers landing at Merimbula Airport as listed in our Fees and Changes.

Currently, passenger numbers are down by about 95% due to the impact of COVID-19 on passenger travel and consequently income of the past nine months has been almost negligible.

Council has several fixed costs associated with running the airport to adhere to Aviation Legislation including the Operation and Management Contract for the Airport, these costs are attempted to be offset by the landing fee income from Council published fees and charges.

It is important to note the as with many Regional Airports across the country Merimbula Airport is heavily reliant on both State and Federal grant money to fund and deliver necessary capital upgrades to meet the ever changing aviation legislation and to ensure the assets are maintained and upgrade to meet industry standards for airport infrastructure.

Should security screening be required to be implemented at Merimbula Airport, Council should seek a direct funding model from either the State of Federal Government to cover the actual cost of security screening for both the initial capital outlay for the required equipment and more importantly for the ongoing operational costs to implement security screening including the ongoing maintenance and direct staffing costs of its implementation.

Legal /Policy

Civil Aviation Safety Authority (CASA) is the Statutory Authority that conducts the safety regulation of civil air operations in Australia, including the regulation of certified and registered aerodromes primarily via the Manual of Standards (MoS) Part 139 which is currently in transition period.

The Aviation Transport Security Act 2004 and associated Aviation Transport Security Regulations 2005, establishes a regulatory regime to safeguard against unlawful interference with aviation and is managed by the Department of Home Affairs.

The Airport lands also fall under the State Environmental Planning Policy (Infrastructure) 2007 - Division 1 Air transport facilities.

All property leases at the airport are managed in accordance with Council’s Management of Leases and Licenses Procedure. As the leases are of a commercial nature and do not involve not-for-profit community organisations, there are no rebates provided off market rental.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The Airport is a critical element of Council’s transport strategic direction and its management and the provision of RPT services into the future will be critical to ensure the best outcomes for the community.

Upgrade of infrastructure at Merimbula Airport is consistent with several key strategic directions set by Council as part of the Community Strategic Plan and these upgrade all act to increase RPT travel and stimulate General Aviation activity:

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

Goal 9: We have opportunities to work, learn and socialise through the provision of affordable public transport and telecommunications services.

Goal 10: We have a good network of good quality roads footpaths and cycleways connecting communities throughout the Shire and beyond

The proposal also aligns with actions identified in Council’s adopted Delivery Program 2017- 2021:

Outcome 2: Employment & Learning Opportunities

2.3.2: Support projects and opportunities that stimulate sustainable economic growth and align with the Economic Development Strategy

2.3.3.: Advocate, support and deliver sustainable tourism and visitor experiences to maximise the benefit to the community

Outcome 5: Connected Communities

5.9.1: Investigate future demand for Merimbula Airport

5.9.1.1: To continue to monitor and track airport usage and investigate opportunities to increase regular passenger travel

5.10.1: Manage, construct and maintain Merimbula Airport

5.10.1.1: Provide an airport with regular passenger services to nearby capital cities and general aviation facilities and services

The Merimbula Airport Master Plan is also another the major strategic driver for the Airport. The Airport is a critical element of Council’s transport strategic direction and its management into the future will be critical to ensure the best outcomes for the community.

All three of the projects are in accordance with the current Merimbula Airport Master Plan.

Environment and Climate Change

A comprehensive Environmental Impact Statement and Review of Environmental Factors have been prepared in order to support the approval for these key infrastructure project at Merimbula Airport.

Economic

These key infrastructure projects are all aimed at increasing options for the community in regards to RPT travel and to support and stimulate General Aviation activity at the airport.

The economy of the Bega Valley has been traditionally dominated by primary industry including agriculture, forestry and fishing. While these industries are still significant, several other key sectors have developed including manufacturing, tourism and remote area employment.

There is growing momentum for projects linking air freight from the area. The Airport, as part of the regional/national transport network, provides access to business markets and thereby significant support to the local economy and at the same time airport operations generate a direct economic benefit.

Risk

One of the key risks associated with this report relates to both the upfront and ongoing financial impacts should screening be required at the airport. There is a risk that if screening equipment is required Council will need to fund it on top of the costs identified in this report. Likewise, if it is not required there is a risk that the Federal Funding body may request a portion of the terminal upgrade grant to be returned.

There are several further key risks to the delivery of these projects at Merimbula Airport and they are summarised in the table below:

Project	Risk	Impact	Mitigation
Runway extension	Development Approval delay	Opportunity to spray seal by February 2022 is missed and project is further delayed by ten months to a year and jeopardises external funding	Work closely with the JRRP and DPIE to address any issues to allow them to be addressed in a timely fashion.
Runway extension	Offset costs are too high (e.g due to overlapping offset issue)	Project may not proceed due to budgetary issues	Pursue all avenues to manage offset costs include use of Council land for offsets Source additional funding and/or lobby with State Government to waive these charges.
Runway Extension	Funding Shortfall	Without secured funding the project is unable to proceed to tender	Continue to lobby and work with both the State and Federal Government to secure additional funding shortfall
Runway extension	Damage to water quality/ release of silt into lake	Temporary closure of oyster farming Siltation of lake	Investigation of site conditions during design (implemented) Advance planning of mitigation measures (implemented) Compliance requirements in construction contract Monitoring during construction
Runway Overlay	Wet weather during construction	Delay reopening of runway (if it is closed) Sub optimal result if works cannot be delayed (if runway has to be reopened) – per the 2013 works	Investigate all designs and methodologies to find a method that are is within budget and can be undertaken at night If day works required, allow buffer in extent of planned runway closure period
Runway Overlay	Runway closure during construction	Loss of direct revenue Impact on local economy Reputational damage with airlines	Investigate all designs and methodologies to find a method that are is within budget and can be undertaken at night
All projects	ACHAs/AHIPs process beyond July 2021 causes program extension	Opportunity to spray seal by February 2022 is missed and project is delayed and jeopardises external funding	Stay closely in touch with stakeholders/ progress Address any issues in timely way
Aboriginal heritage items discovered during construction	Non-compliance of reporting requirement Extension of construction program (program and cost ramifications)	Loss of relationship with Aboriginal community Fines Funding deed ramifications Cost	Address in contract conditions Ensure Aboriginal supervision is present as required Bundle projects to allow work in other areas whilst any finds are address in accordance with compliance
General Aviation Precinct	Funding Shortfall	Not all of the GA project is realised at this stage.	Continue to lobby and work with both the State and Federal Government to secure additional funding shortfall

Social / Cultural

Community benefit is arguably the main reason why Council owns and operates an airport. Airport operations are a vital component of an overall integrated transport network, which links the Bega Valley with capital cities.

The Airport provides essential links for professional, legal, specialist and medical services as well as passengers for tourism, employment and business.

Attachments

1 ⇩. Attachment 1 - Merimbula Airport - Infrastructure Upgrade Progress Report - Runway Extension Design

2 ⇩. Attachment 2 - Merimbula Airport - Infrastructure Upgrade Progress Report - General Aviation Precinct

Council 25 November 2020

Item 13.1

13.1. September QBRS and FY21 Operational Plan Amendments

Quarterly Budget Review Statements (QBRS) are prepared and presented to Council in accordance with Section 203 of the Local Government (General) Regulation 2005. Amendments to the FY21 Operational Plan are also proposed for Council’s consideration.

Director Business & Governance

Officer’s Recommendation

1. That Council receive and note the September 2020 Quarterly Budget Review Statement.

2. That the budget recommendations detailed in the September 2020 quarterly budget review statement be adopted.

3. That the proposed amendments to the 2020/2021 Operational Plan be adopted as outlined at Attachment A.

Executive Summary

Under the Integrated Planning and Reporting (IPR) Guidelines, a Quarterly Budget Review Statement (QBRS) must be presented to Council for each financial quarter. Supporting the September quarterly review of the adopted budget for 2020/2021 Council officers have also reviewed the activities outlined in the Operational Plan with recommendations to amend and defer some activities.

Background

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

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

Given the significant impacts of bushfire recovery and COVID-19 Council officers were requested to review the 2020/2021 Operational Plan adopted in mid July 2020 and advise recommended amendments to better reflect the current context or any activities that need to be deferred to the following financial year as a result of requested budget adjustments. Details of the impact of the recommended changes to the 2020/2021 Operational Plan are outlined in Attachment A.

Key considerations:

The 2021 budget was developed in March 2020 when many external factors were unknown including:

· We have experienced and responded to multiple natural disasters including fires and floods.

· The COVID effect in March was expected to be approximately $500k. On review there are additional costs of $480k, resulting in impacts on our budget closer to $1 Million. There is no funding available to cover these expenses.

· Cost Increases.

· Investment in technology to support working from home.

· Waiving of interest on overdue amounts.

· Reduction in revenue.

· Lower than expected investment returns.

· We have also identified areas of cost avoidance, for example a reduction in things such as travel, accommodation and off-site training expenses, meals and function expenses.

During this time, we have continued to demonstrate improvement in our financial reporting and systems with a focus on reducing errors and improving real time information.

In addition, there will be continued implementation of identified improvements in Councils reporting including improved processes in accounting for disaster funding, reserve allocations off-setting general fund expenditure, opportunities to finance contributions for capital and improved distribution of operational expenses, such as insurance, against services will be investigated. These will be explored to provide greater insights into financial performance at the Council activity level.

Options

Councillors have participated in workshops prior to this Council meeting to discuss the progress of the budget and Operational Plan. A detailed review from Council officers has been undertaken in preparing the QBRS and Operational Plan amendments and it is recommended these are adopted to continue to support Council staff to deliver for the community. Alternatively, Council has the option to seek alternative budget adjustments and Operational Plan amendments.

Community and Stakeholder Engagement

Engagement undertaken

Internal engagement with staff has been undertaken to develop the recommendations for both the budget and the Operational Plan activities.

Engagement planned

If the recommendation is adopted, the QBRS will be made available on Councils website on the budget page and an addendum to the adopted Operational Plan for 2020/2021 will be provided to acknowledge the changes made to the Operational Plan since its adoption in July.

Financial and Resource Considerations

Operating ResultCouncil’s budgeted surplus has increased by $2 million from $26 million in the original budget to $30.6 million. The net operating result before Capital items has worsened by $3 Million with the expected deficit result of $9.7 million. Of this, $2.6 million is accounting for depreciation which has been matched to reflect the unaudited 2020 financial results. This situation is not completely unexpected given the timing of preparing the FY2021 budget, the manual nature of our systems and processes and the external operating environment that has had significant unforeseen financial impacts.Within income streams there have been some improvement in rates income of $54,214 as a result of growth in the Bega Valley. There is also an increase in fees and charges ($1,281,869) following the increase in waste user charges for disposal of bushfire waste. This has countered the increased loss of income in airports of $308,500 due to COVID 19 restrictions. The total support to the community through fee waivers for services provided by Council (excluding Development Application (DA) fees) is approximately $894,000.

Operational Grants have increased by $1.6 million dollars. Included in this amount is:

$302,045 Immediate Financial Support for Bushfire Affected residents

$525,060 DFRA and Section 44 claimable costs

$87,200 Recovery Centre costs (at September 200)

$212,662 Additional Childcare Grant Income

$92,000 Bushfire Dilapidation Program

Capital Grants increased by $7.4 million. Included in this amount are:

$260,992 Bega Plumb Motors Grant

$350,000 Drought Community Programs

$500,000 Murrabine Creek Bridge

$6,350,000 Brogo Water Treatment Plant (originally phased through to 2022)

Expenses increased by $5.5 million. Employee costs of $944,978 and materials and contracts of $3,848,795 can be attributed to the operational grant increases. A decrease in other expenses is reimbursement of an overpayment in the FY2019.

Capital

Capital expenditure is estimated to increase by $2.1 million dollars in the September QBRS to $87.4 million. A review of the capital program was conducted, and several projects were identified that would not be completed in the current year. These have been carried over to be completed in the 2022 Operational Plan. Additional projects are related to grant funding

Cash and Investments

Council had cash and investments of $81.2 million at 30 September 2020.The revised projected cash figure at 30 June 2021 is expected to be $57.5 million. Our investments have been impacted by the economic downturn due to COVID-19 pandemic.

In the report to Council on 7 October 2020, we noted that the State and Federal Government debtors at 30 June 2020 stood at $7.5 million of funding owed to Council for grants on projects where work had been carried out and; for disaster works completed under S44. Of this $3.4 million had been received in the current year and included in the cash flow statement

Other impacts include:

· Council has not drawn down the approved loan for the Merimbula Airport Terminal. When this is drawn, the funds raised will be assigned to reimburse the reserves against which the Terminal works have been applied.

· The internally restricted funds released at 30 June 2020 (based on the cash and cash equivalent balance) have been reinstated in 2021 from the payments to be received from State and Federal government debtors and loan funds.

Council has previously indicated a policy position of holding $1.5 million in unrestricted funds. This should be re-established when Council’s position on reserve management is resolved following the baseline review currently being undertaken.Legal /Policy

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

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

Budget Review Statements and revision of estimates

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

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

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

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

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

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

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

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

Other key projects and actions which need to be progressed in the current year to improve Council’s operational deficit and cash positions are being progressed and will be workshopped with Councillors and presented for resolution. These include:

· Review of Council’s loans and borrowing policy and approach

· Review of Council’s internally restricted reserves and prioritising of projects following final resolution of the current baseline review

· A full review of fees and charges and other income sources

· Continued work to hand back RFS and other emergency service assets to Government as resolved by Council

· Continued advocacy related to removing the Emergency Services costs applied to Councils from Councils rates income which are expected to increase due to increased expenditure by the RFS

· Review of options for service delivery and working with community to consider a level of service reduction

· Accelerating the land divestment strategy with commitment to place funds in reserve to allocate to assets

· A continued review of Councils asset portfolio including the BVRLC as per the Mayoral Minute from the last meeting

· Continued implementation of the items being progressed in Council’s Financial Improvement Plan

· Ensuring that no new grants are accepted or applied for that bring a requirement for Council contribution or increased maintenance and operating costs

· An assessment of service levels in areas funded particularly by the General Fund and ensuring a final draft position moving forward to include in the draft 2022 budget.

This work will be the focus of the current year as well as dealing with monitoring the impacts of the COVID and Bushfire/Flood on a range of services and income. For the development of the 2022 budget the move to zero based budgeting will provide a clear focus for service costs. It is clear Council is in a challenging position at this time along with most governments however it is critical that the focus for the future moves to continue the improvements being made in the financial position.

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

A review of all current Special Rate Variations (SRV) is also to be undertaken in early 2021 to consider options for rationalising and streamlining these for the future. This needs to be carefully considered following the pools SRV which was not progressed for this year however the full costs of the six-pool strategy remain and have a financial impact on the 2021 budget.

Environment and Climate Change

There are no direct Environment and Climate Change implications associated with presenting this report.

Economic

Council and its expenditure has a significant economic impact on the Bega Valley. The recommended adjustments to the adopted budget ensure as an organisation we can continue to deliver the services and projects committed to in the 2020/2021 Operational Plan.

Risk

Financial stability is defined in terms of Council's ability to facilitate and enhance economic processes, manage risks, and absorb shocks. Moreover, financial stability is considered a continuum: changeable over time and consistent with multiple combinations of the constituent elements of finance. The QBRS process helps to provide transparency and accountability into the financial management of Council.

Social / Cultural

The attachments to this report detail the recommended adjustments to our budget and Operational Plan, which may have some impacts on social and cultural services. The Officer’s recommendation is to support the continued service provisions and associated budgets as detailed in the organisation’s plans as contained in the attached.

Attachments

1 ⇩. FY21 Q1 Operational Plan Proposed Amendments

2 ⇩. Quarterly Budget Review September 2020

Council 25 November 2020

Item 13.2

13.2. Certificate of Investment.

This report details Council’s Investments at the end of October 2020.

Director Business & Governance

Officer’s Recommendation

1. That Council receive and note the attached reports indicating Council’s investment position as at 31 October 2020.

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

3. That Council revoke the Cash Management and Investment Strategy (6.07.3).

Executive Summary

I, Judy Jordan, as the Responsible Accounting Officer of Bega Valley Shire Council (BVSC), hereby certify the investments listed in the attached reports have been made in accordance with Section 625 of the Local Government Act 1993 (the Act), clause 212 of the Local Government (General) Regulation 2005 and Council’s Investment Policy.

All investments have been appropriately recorded in Council’s financial records and reconciled monthly.

Background

· Under the Legislation and Regulations mentioned below, the Responsible Accounting Officer must present to Council monthly, the status of the investments held by Council. The Responsible Accounting Officer must detail the investments held, and their compliance with both internal Policy and external Regulation under the Ministerial Order of Investments.

· In accordance with the recommendations made by the Office of Local Government (OLG) Investment Policy Guidelines published in June 2010, the monthly Investments Reports are attached to the Business Paper. This allows a stand-alone report to be published on Council’s website for the public to view without having to peruse the Council’s Agenda for the relevant meeting.

Options

Council has an adopted Investment Policy (Policy 6.07) that provides guidelines that are consistent with the Ministerial investment order. The policy also clearly defines restrictions on Credit ratings and percentages of portfolios that per rating, details maximum exposure to any one financial institution.

Council has also adopted a Cash Management and Investment Strategy (6.07.3) that restricts Council to investments provided through TCorp (NSW Treasury Corporation).

Current returns on TCorp Cash fund for October was 0.84% (annualised) and for the short-term income fund of 2.4% (annualised). Whilst these are comparable to the current rates available it has not always been competitive.

Council should ensure that it has the opportunity of maximising its investment returns annually by ‘shopping’ for investments that meet the restrictions in Council’s investment policy, Council would need to revoke the 6.07.3 Cash management and investment strategy to enable this proactive approach to maximising investment returns, which we are recommending in this report.

Community and Stakeholder Engagement

Legislation, regulation and policy requirements facilitate open and transparent financial management. Council reports monthly on the performance of investments through Council business papers, as well, end of year financial statements include the annual result of cash and cash equivalents each year.

Financial and Resource Considerations

The attached report indicates a current investment portfolio of $85,177,245 at 31 October 2020. These funds can be broken into the following Funds:

Table 1: Investments by Fund $’000
Fund	Aug-20	Sep-20	Oct-20
General Fund	20,862	18,551	22,860
Water Fund	20,806	21,359	21,815
Sewer Fund	38,351	40,148	40,502
TOTAL	80,019	80,058	85,177

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

As at 31 October 2020, BVSC’s cash at bank was $4,212,471 and the investment balance was $85,177,245. The investments are broken up as follows:

· TCorpIM Cash Fund - $36,424,271

· TCorpIM Strategic Cash Fund – $48,752,973

With respect to the Fund’s monthly distributions, the custodian calculates the Fund’s earnings at month end and then pays a distribution based on these earnings. Distributions are paid to investors by way of the issue of additional units.

Council has adopted a budget of $1,376,491 for investment returns. The current investment return is $400,782 (29% of expected budget). This return is slightly less than anticipated and should be reviewed monthly to determine if an adjustment to the budget is required.

Legal /Policy

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

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

The report must also include a Certificate as to whether the investments have been made in accordance with the Act, the Regulations and the Council’s Investment Policy.

Council has an Investment Policy published under Policy number 6.07. This Policy is reviewed every 4 years by Council and annually by Council officers.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

6: Strong, Consultative Leadership

6.12: Our Council is financially sustainable and services and facilities meet community need

6.12.5: Improve the provision of corporate financial services

Environment and Climate Change

Council is committed to ensuring investments providers meet Councils requirements regarding Environment, Social and Governance factors.

TCorp has provided BVSC with their Investment Stewardship Policy (refer to Business Paper for Ordinary Meeting of Council held 31 January 2018).

In order to deliver the best long-term risk adjusted returns for clients, TCorp integrates Environmental, Social and Governance (ESG) factors into the investment processes of the appointed investment managers. TCorp will evaluate the ESG policies and practices of its investment managers as part of the manager selection process, as well as during periodic manager reviews.

Council would require any investment portfolio to meet ESG factors that align with Council’s strategies and vision as a responsible community citizen.

Economic

Council’s investment policy objective is to maximise returns by investing with the most favourable rate of return. Performance of that investment is reported monthly, quarterly and annually.

Risk

Council policies have strict guidelines to reduce Councils risk to capital. Other legal instruments, such as the Ministerial Order referenced above, are used to mitigate financial risk.

The attached investment policy is one of the control methods to mitigate the following identified risks:

· Preservation of Capital – the requirement for preventing losses in an investment portfolio’s total value (considering the time value of money).

· Diversification – setting limits to the amounts invested with a particular financial institution or government authority to reduce credit risk.

· Credit risk – the risk that Council has invested in an institution which fails to pay the interest and or repay the principal of an investment.

· Market Risk - the risk that the fair value or future cash flows of an investment will fluctuate due to changes in market prices.

· Liquidity Risk - the risk that Council is unable to redeem the investment at a fair price within a timely period.

· Maturity Risk - the risk relating to the length of term to maturity of the investment. The larger the term, the greater the length of exposure and risk to market volatilities.

· Rollover Risk - the risk that income will not meet expectations or budgeted requirement because interest rates are lower than expected in future.

Social / Cultural

Maximising performance of returns enables the organisation to leverage additional funding received as a result of investments and use these towards community projects, programs and services.

Attachments

1 ⇩. Policy 6.07 Investment Policy

2 ⇩. 6.07.3 Cash Management and Investment Strategy

3 ⇩. Bega Valley Shire Council SCFT October 2020 Statement

4 ⇩. Bega Valley Shire Council CAFT October 2020 Statement

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	25 November 2020
*Item 9.1 - Attachment 1*	Draft Disability Inclusion Action Plan 2021-2025

Council	25 November 2020
*Item 11.2 - Attachment 1*	Bega Valley Shire Museum information 2020

Council	25 November 2020
*Item 11.2 - Attachment 2*	Council report dated 21 November 2018 - Grant of new lease - Eden Killer Whale Museum

Council	25 November 2020
*Item 11.2 - Attachment 3*	Council report dated 15 March 2017 - Bega Pioneers Museum

Council	25 November 2020
*Item 11.2 - Attachment 4*	Council report dated 20 May 2015 - Occupation of Old Pambula Courthouse

Council	25 November 2020
*Item 11.2 - Attachment 5*	Council report dated 6 April 2016 Licence Agreements - Old Merimbula School Site

Council	25 November 2020
*Item 11.2 - Attachment 6*	Council report dated 13 June 2018 - Licence for the upper level of the Tathra Wharf Museum

Council	25 November 2020
*Item 11.2 - Attachment 7*	Council report dated 22 November 2017 - Bermagui Community Centre Licence Agreement Renewals

Council	25 November 2020
*Item 11.2 - Attachment 8*	Council report dated 16 December 2015 - Old CBC Building in Bega

Council	25 November 2020
*Item 11.2 - Attachment 9*	Council report dated 26 August 2020 - Montreal Goldfields

Council	25 November 2020
*Item 11.3 - Attachment 1*	Community Project Proposal Summary Sheet 25 November 2020

Council	25 November 2020
*Item 11.5 - Attachment 1*	Attachment 1 - Merimbula Airport - Infrastructure Upgrade Progress Report - Runway Extension Design

Council	25 November 2020
*Item 11.5 - Attachment 2*	Attachment 2 - Merimbula Airport - Infrastructure Upgrade Progress Report - General Aviation Precinct

Number of Complaints
1	a	The total number of complaints received in the period about councillors and the General Manager (GM) under the code of conduct	2
	b	The total number of complaints finalised in the period about councillors and the GM under the code of conduct	2
Overview of Complaints and Cost
2	a	The number of complaints finalised at the outset by alternative means by the GM or Mayor	1
	b	The number of complaints referred to the Office of Local Government under a special complaints management arrangement	0
	c	The number of code of conduct complaints referred to a conduct reviewer	1
	d	The number of code of conduct complaints finalised at preliminary assessment by conduct reviewer	1
	e	The number of code of conduct complaints referred back to GM or Mayor for resolution after preliminary assessment by conduct reviewer	1
	f	The number of finalised code of conduct complaints investigated by a conduct reviewer	0
	g	The number of finalised code of conduct complaints investigated by a conduct review committee	0
	h	The number of finalised complaints investigated where there was found to be no breach	0
	i	The number of finalised complaints investigated where there was found to be a breach	0
	j	The number of complaints referred by the GM or Mayor to another agency or body such as the ICAC, the NSW Ombudsman, the Office or the Police	0
	k	The number of complaints being investigated that are not yet finalised	0
	l	The total cost of dealing with code of conduct complaints within the period made about councillors and the GM including staff costs	$5,003

Council	25 November 2020
*Item 13.1 - Attachment 1*	FY21 Q1 Operational Plan Proposed Amendments

Council	25 November 2020
*Item 13.1 - Attachment 2*	Quarterly Budget Review September 2020

Council	25 November 2020
*Item 13.2 - Attachment 1*	Policy 6.07 Investment Policy

Council	25 November 2020
*Item 13.2 - Attachment 2*	6.07.3 Cash Management and Investment Strategy

Council	25 November 2020
*Item 13.2 - Attachment 3*	Bega Valley Shire Council SCFT October 2020 Statement

Council	25 November 2020
*Item 13.2 - Attachment 4*	Bega Valley Shire Council CAFT October 2020 Statement

Council	25 November 2020
*Item 16.1 - Attachment 1*	Letter sent to The Hon David Littleproud MP

Council	25 November 2020
*Item 16.1 - Attachment 2*	Letter received in response from The Hon Michael McCormack MP

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 Questions without Notice

19 Confidential Business

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

Statement of Re-Commencement of Live Streaming

20 Noting of Resolutions from Closed Session

21 Declassification of reports considered previously in Closed Session

Council

25 November 2020

Staff Reports – Community, Culture and Leisure

25 November 2020

9.1. Draft Disability Inclusion Action Plan 2021-2025

Officer’s Recommendation

Attachments

Council

25 November 2020

Staff Reports – Infrastructure Waste And Water

25 November 2020

Council

25 November 2020

Staff Reports – Governance And Strategy

25 November 2020

Staff Reports – Finance

25 November 2020

16.1. Cr Tony Allen - Brogo Dam

Notice of Motion

Background

Attachments