Ordinary

Meeting Notice and Agenda

 

An Ordinary Meeting of the Bega Valley Shire Council will be held via Zoom on
Wednesday, 16 December 2020 commencing at 2:00pm to consider and resolve
on the matters set out in the attached Agenda.

 

 

 

To:

Cr Russell Fitzpatrick , Mayor

Cr Liz Seckold, Deputy Mayor

Cr Tony Allen

Cr Robyn Bain

Cr Jo Dodds

Cr Cathy Griff

Cr Kristy McBain

Cr Mitchell Nadin

Copy:

General Manager, Ms Leanne Barnes

Director, Assets and Operations, Mr Anthony McMahon

Director,  Community, Environment and Planning, Dr Alice Howe

Director, Business and Governance, Mrs Iliada Bolton

Manager Communications and Events, Ms Emily Harrison

Project Lead, Recovery, Rebuilding and Resilience, Mr Chris Horsburgh

Minute Secretary, Mrs Bec Jones

 

 

 


Live Streaming of Council Meetings

Council meetings are recorded and live streamed to the Internet for public viewing.  By entering the Chambers during an open session of Council, you consent to your attendance and participation being recorded.

The recording will be archived and made available on Council’s website www.begavalley.nsw.gov.au. All care is taken to maintain your privacy; however as a visitor of the public gallery, your presence may be recorded.

Publishing of Agendas And Minutes

The Agendas for Council Meetings and Council Reports for each meeting will be available to the public on Council’s website as close as possible to 5.00 pm on the Thursday prior to each Ordinary Meeting.  A hard copy is also made available at the Bega Administration Building reception desk and on the day of the meeting, in the Council Chambers.

The Minutes of Council Meetings are available on Council's Website as close as possible to 5.00 pm on the Monday after the Meeting.

1.     Please be aware that the recommendations in the Council Meeting Agenda are recommendations to the Council for consideration.  They are not the resolutions (decisions) of Council.

2.     Background for reports is provided by staff to the General Manager for  presentation to Council.

3.     The Council may adopt these recommendations, amend the recommendations, determine a completely different course of action, or it may decline to pursue any course of action.

4.     The decision of the Council becomes the resolution of the Council, and is recorded in the Minutes of that meeting.

5.     The Minutes of each Council meeting are published in draft format, and are confirmed by Councillors, with amendments  if necessary, at the next available Council Meeting.

If you require any further information or clarification regarding a report to Counci, please contact Council’s Executive Assistant who can provide you with the appropriate contact details

Phone (6499 2104) or email execassist@begavalley.nsw.gov.au.

 


Ethical Decision Making and Conflicts of Interest

A guiding checklist for Councillors, officers and community committees

Ethical decision making

·      Is the decision or conduct legal?

·      Is it consistent with Government policy, Council’s objectives and Code of Conduct?

·      What will the outcome be for you, your colleagues, the Council, anyone else?

·      Does it raise a conflict of interest?

·      Do you stand to gain personally at public expense?

·      Can the decision be justified in terms of public interest?

·      Would it withstand public scrutiny?

Conflict of interest

A conflict of interest is a clash between private interest and public duty. There are two types of conflict:

·         Pecuniary – regulated by the Local Government Act 1993 and Office of Local Government

·         Non-pecuniary – regulated by Codes of Conduct and policy. ICAC, Ombudsman, Office of Local Government (advice only).  If declaring a Non-Pecuniary Conflict of Interest, Councillors can choose to either disclose and vote, disclose and not vote or leave the Chamber.

The test for conflict of interest

·         Is it likely I could be influenced by personal interest in carrying out my public duty?

·         Would a fair and reasonable person believe I could be so influenced?

·         Conflict of interest is closely tied to the layperson’s definition of ‘corruption’ – using public office for private gain.

·         Important to consider public perceptions of whether you have a conflict of interest.

Identifying problems

1st       Do I have private interests affected by a matter I am officially involved in?

2nd     Is my official role one of influence or perceived influence over the matter?

3rd      Do my private interests conflict with my official role?

Local Government Act 1993 and Model Code of Conduct

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

Agency advice     

Whilst seeking advice is generally useful, the ultimate decision rests with the person concerned.Officers of the following agencies are available during office hours to discuss the obligations placed on Councillors, officers and community committee members by various pieces of legislation, regulation and codes.

Contact

Phone

Email

Website

Bega Valley Shire Council

(02) 6499 2222

council@begavalley.nsw.gov.au

www.begavalley.nsw.gov.au

ICAC

8281 5999

Toll Free 1800 463 909

icac@icac.nsw.gov.au

www.icac.nsw.gov.au

Office of Local Government

(02) 4428 4100

olg@olg.nsw.gov.au

http://www.olg.nsw.gov.au/

NSW Ombudsman

(02) 8286 1000

Toll Free 1800 451 524

nswombo@ombo.nsw.gov.au

www.ombo.nsw.gov.au

 

Disclosure of pecuniary interests / non-pecuniary interests

Under the provisions of Section 451(1) of the Local Government Act 1993 (pecuniary interests) and Part 4 of the Model Code of Conduct prescribed by the Local Government (Discipline) Regulation (conflict of interests) it is necessary for you to disclose the nature of the interest when making a disclosure of a pecuniary interest or a non-pecuniary conflict of interest at a meeting. 

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

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

Item no & subject

 

Pecuniary Interest

 

   In my opinion, my interest is pecuniary and I am therefore required to take the action specified in section 451(2) of the Local Government Act 1993 and or any other action required by the Chief Executive Officer.

Significant Non-pecuniary conflict of interest

   – In my opinion, my interest is non-pecuniary but significant. I am unable to remove the source of conflict. I am therefore required to treat the interest as if it were pecuniary and take the action specified in section 451(2) of the Local Government Act 1993.

Non-pecuniary conflict of interest

   In my opinion, my interest is non-pecuniary and less than significant. I therefore make this declaration as I am required to do pursuant to clause 5.11 of Council’s Code of Conduct. However, I intend to continue to be involved with the matter.

Nature of interest

Be specific and include information such as :

·         The names of any person or organization with which you have a relationship

·         The nature of your relationship with the person or organization

·         The reason(s) why you consider the situation may (or may be perceived to) give rise to a conflict between your personal interests and your public duty as a Councillor.

If Pecuniary

  Leave chamber

If Non-pecuniary  (tick one)

 Disclose & vote        Disclose & not vote          Leave chamber

Reason for action proposed

Clause 5.11 of Council’s Code of Conduct provides that if you determine that a non-pecuniary conflict of interest is less than significant and does not require further action, you must provide an explanation of why you  consider that conflict does not require further action in the circumstances

Print Name

 

I disclose the above interest and acknowledge that I will take appropriate action as I have indicated above.

Signed

 

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


Council

16 December 2020

 

Agenda

Statement of Commencement of Live Streaming

Acknowledgement of Traditional Owners of Bega Valley Shire

1       Apologies and requests for leave of absence

 

2       Confirmation Of Minutes

Recommendation

That the Minutes of the Ordinary Meeting held on 25 November 2020 as circulated, be taken as read and confirmed.

3       Declarations

Pecuniary, Non-Pecuniary and Political Donation Disclosures to be declared and tabled.  Declarations also to be declared prior to discussion on each item.

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

 

8.1                Outcome of exhibition of amendment to Bega Valley Development Control Plan 2013 - Aboriginal Heritage.......................................................................................................................................... 9

8.2                Planning proposal to permit dwellings on deemed concessional lots................................. 28

8.3                Inclusion of new Natural Disaters Clause in Bega Valley Local Environmental Plan 2013 52

9       Staff Reports – Community, Culture and Leisure

 

9.1                Bega War Memorial Swimming Pool Concept Plan................................................................. 56

9.2                Eden All-inclusive Playspace - Concept Design......................................................................... 70

9.3                Swimming Pool Fees & Charges- Additional Fee Proposal..................................................... 87

10   Staff Reports –Economic Development and Business Growth

 

Nil Reports

11     Staff Reports – Infrastructure Waste and Water

 

11.1              Cemetery Strategy 2020-2030..................................................................................................... 92

11.2              Bega Valley Local Traffic Committee........................................................................................ 177

11.3              RFT 10031271 - Brogo Water Treatment Plant -Tender Evaluation Report...................... 181

11.4              RFT 2021-43 Bega Sporting Complex Design.......................................................................... 186

11.5              RFT 2021-48 Imlay Street and Albert Terrace, Eden Upgrade – Tender Evaluation Report 192

11.6              Bega District Woodcraft Association........................................................................................ 199

11.7              Dividing Fences Amendment Bill 2020..................................................................................... 205

11.8              Eden Fisherman's Recreation Club occupation of Lot 4 DP 1126141................................. 208

11.9              Land matters associated with Tathra Lawrence Park and Preschool................................. 267

11.10           Proposed divestment of Lots 9 - 12 Sec 1 & 2 DP 1085 at Park Street, Bega.................... 299

11.11           Proposed divestment of Lot 5 DP 843822 and Lot 16 DP 112193 Mecklenberg Street, Bega         311

11.12           Apex Park Cobargo Toilet Costs................................................................................................ 320

12   Staff Reports – Governance and Strategy

 

Nil Reports

13     Staff Reports – Finance

 

13.1              Presentation of Financial Statements and Audit Report for the Year Ended 30 June 2020 324

13.2              RFT 2021-45 - Provision of Financial Services......................................................................... 441

13.3              Completion of Financial Performance Review....................................................................... 444

13.4              Certificate of Investment............................................................................................................ 496

 

14     Councillor Reports

 

15     Rescission/alteration Motions

 

16     Notices of Motion

16.1              Support of Active Transport....................................................................................................... 502

16.2              Proposed Dog Off Leash - North Tura Beach.......................................................................... 504

16.3              Central Waste Facility (CWF) Consultative Committee........................................................ 505

 

17     Questions with Notice

17.1              Cr Bain - Street Furniture Renewal - Bemboka....................................................................... 507

17.2              Cr Nadin - Colombo Park Trustee.............................................................................................. 508

17.3              Cr Dodds - Planting of Street Trees........................................................................................... 509

17.4              Cr Allen - Water Line Repair....................................................................................................... 510

17.5              Cr Bain - Robertson Street, Bemboka...................................................................................... 511

17.6              Cr Fitzpatrick - Increase to Outdoor Eating Capacity............................................................. 515

17.7              Cr Griff - Access to Toilets in Cobargo...................................................................................... 516

 

18     Questions without Notice

 

19     Confidential Business 

 

Representations by members of the public regarding closure of part of meeting

Adjournment Into Closed Session, exclusion of the media and public........................... 517

              

19.1              Trunk Main Water Supply - request for leniency on water charges account

This report is confidential in accordance with section 10A (2) (b) of the Local Government act 1993 as the report contains a discussion in relation to the personal hardship of a resident or ratepayer.

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

16 December 2020

 

 

Staff Reports –Planning And Environment

 

16 December 2020

  

8.1              Outcome of exhibition of amendment to Bega Valley Development Control Plan 2013 - Aboriginal Heritage............................................................................................... 9

8.2              Planning proposal to permit dwellings on deemed concessional lots................ 28

8.3              Inclusion of new Natural Disaters Clause in Bega Valley Local Environmental Plan 2013............................................................................................................................. 52


Council 16 December 2020

Item 8.1

 

8.1.  Outcome of exhibition of amendment to Bega Valley Development Control Plan 2013 - Aboriginal Heritage     

This report seeks a resolution of Council to adopt Chapter 5.1 ‘Aboriginal Heritage’ for inclusion in Bega Valley Development Control Plan 2013, following public exhibition.

 

Director Community Environment and Planning  

Officer’s Recommendation

1.         That Council resolve to adopt the amendment to the Bega Valley Shire Development Control Plan 2013 (Attachment 1).

2.         That the adoption of the amendment to Bega Valley Development Control Plan 2013 be notified in accordance with Environmental Planning and Assessment Regulation 2000.

3.         That those who made submissions be notified of Council’s decision.

 

Executive Summary

Bega Valley Shire Council publicly exhibited an amendment to Chapter 5.1 Aboriginal Heritage of Bega Valley Development Control Plan 2013 (BVDCP 2013) for 60 days from 1 June 2020 to 2 August 2020, with 13 submissions received.  A summary of the issues raised in submissions and stakeholder engagement is included in Attachment 2

After a review of the submissions, several changes to the draft DCP amendment are recommended. As none of the proposed changes substantially change the outcomes or effect of the draft DCP amendment, it is recommended that Council resolve to adopt the proposed DCP amendment. Proposed changes to the exhibited version are shown as tracked changes in Attachment 1. 

The recommended changes to the exhibited draft DCP amendment involve:

·    Expansion of the objectives to reflect a more educational focus,

·    Clarification that a basic due diligence assessment may be undertaken by an applicant, and

·    Replacement of the exclusion provisions with a more clearly stated due diligence process.

Background

Council officers developed draft BVDCP 2013 Chapter 5.1 Aboriginal Heritage which aims to describe and improve existing Council processes for the assessment of Aboriginal cultural heritage in development applications.

Development of the draft Aboriginal Heritage DCP provisions is one of several actions initiated by Council to improve the protection of Aboriginal Heritage in the Bega Valley Shire.

The draft Chapter 5.1 contained detailed guidance on considerations for and levels of assessment of Aboriginal cultural heritage for development applications, including how publicly available sources of information, such as the Aboriginal Cultural Heritage Landscape Map, can be used in the assessments carried out in accordance with the Due Diligence Code of Practice for the Protection of Aboriginal Objects in New South Wales 2010 (Due Diligence Code of Practice).

On 29 April 2020, Council resolved:

        1.    To publicly exhibit an amendment to Chapter 5.1 ‘Aboriginal Heritage’ of Bega Valley Development Control Plan 2013 for not less than 60 days.

2.    That Council staff seek considerable input from community stakeholder groups, industry professionals, chambers of commerce, land and business owners.

3.    That a further report be provided to Council after the close of the public exhibition period.

The purpose of this report to Council is to report on the feedback to the public exhibition of the draft BVDCP 2013 amendment and seek a Council resolution to adopt the amended version of Chapter 5.1.

Options

A range of issues and suggestions were raised in feedback to the public exhibition of the draft BVDCP2013 amendment and Council has several options to progress the amendment to BVDCP 2013:

1.     Adopt the proposed DCP amendment (Attachment 1), as changed following public exhibition. This is the recommended option. The recommended changes would enable several improvements to the objectives and clarification of Council process in the draft amendment.

2.    Adopt the draft amendment to BVDCP 2013 as exhibited.

3.    Make further changes to the draft amendment, as identified by Council, after consideration of this report and the submissions provided in Attachment 2.

Community and Stakeholder Engagement

Engagement undertaken

Community engagement on the draft amendment to BVDCP 2013 was carried out in accordance with Council’s Community Engagement Strategy and Community Engagement and Communications Toolkit.  The project was assessed to be Level 2 - Consult on the IAP2 spectrum.

Formal public exhibition of the draft amendment took place from 1 June 2020 to 2 August 2020. Consultation undertaken during the 60-day public exhibition included:

·    Advertising in local newspapers and Council News

·    Placement of the draft document and Aboriginal Cultural Heritage Landscape Map on the ‘Have your Say’ section of Council’s website

·    Publication of Frequently Asked Questions on the ‘Have your Say’ section of Council’s website

·    Issuing of a media release

·    Distribution of exhibition documents to Local Aboriginal Land Councils (LALCs), development professionals, Chambers of Commerce and Heritage NSW

·    Follow-up phone calls for each person /organisation directly contacted (if they had not yet responded) approximately four weeks after the draft document was exhibited

·    Discussion of the draft document with the Bega, Eden, Merrimans (BEM) Aboriginal Liaison Committee on 25 June 2020 (attended by Bega, Eden and Merrimans LALCs)

Thirteen submissions on the draft DCP amendment were received via email, discussions at stakeholder meetings, telephone conversations and comments on the ‘Have your Say’ section of Council’s website.

Following the formal public exhibition of the draft DCP amendment, Council officers conducted a second round of engagement with people and organisations that made submissions. The purpose of this second round of consultation was to test several suggested changes to the draft DCP amendment based on the feedback received. Four written responses were received to this second round, and verbal feedback was provided by the Bega and Eden LALCs.

Consultation during the second informal 21-day consultation period (from 22 September to 12 October 2020) included:

·    Email with explanatory letter and suggested changes to the wording of the draft DCP amendments

·    Presentation of suggested revised draft DCP amendments and discussion with Bega and Eden LALCs on 7 October 2020 (Merrimans LALC was also invited)

Summary of submissions

Thirteen submissions were received during the formal exhibition period. Four written responses to changes to the wording of the draft DCP amendments were received, which were generally supportive of the changes proposed. The Eden and Bega LALCs also supported the changes. The following is a summary of the three key issues raised, including discussion from Council staff regarding recommendations for amendment to the draft DCP amendment. A summary of feedback is provided in Appendix 2.

1) Objectives and process described in draft DCP amendment

Issue summary:

Several submissions and discussions with stakeholders about the draft DCP amendment highlighted the current lack of understanding about existing legislative obligations and Council processes regarding the assessment of Aboriginal cultural heritage in relation to both development applications and complying development. Several submissions raised the need to clarify certain aspects of the process outlined in the draft DCP amendment, including when a due diligence assessment must be prepared by a suitable qualified person.

Staff comment:  

A key aim of the draft DCP amendment was to inform applicants of their current responsibilities under the Due Diligence Code of Practice. If anybody unintentionally disturbs or destroys Aboriginal heritage, carrying out a detailed level of due diligence gives applicants’ a defence against prosecution. The Due Diligence Code of Practice is a long and complex document, and the draft DCP amendment provides guidance on how to conduct a due diligence assessment to simplify the process for applicants.

Recommendation:

It is recommended that two additional objectives be added to further explain the purpose of the draft DCP amendment:

·    Guide the preparation of Due Diligence assessments

·    Outline considerations for and levels of assessment of Aboriginal cultural heritage for development applications

 

 

2) Implications of ‘excluded land’ provisions

Issue summary:

Several submissions and discussions with stakeholders raised issues about the ‘excluded land’ provisions within the draft DCP amendment. Feedback included: the 'prior disturbance' exclusion provisions should be removed and a due diligence assessment should be required for all activities that will create substantial disturbance to the land; need for a definition of disturbed land; and need to limit disturbed land to greater than 30cm in depth and width.

Staff comment:  

The draft DCP amendment aimed to clarify the circumstances when a higher level of due diligence assessment regarding Aboriginal cultural heritage would be required by Council. The exhibited draft DCP amendment noted that all ‘landowners should still satisfy themselves in relation to their responsibilities under the Due Diligence Code of Practice’, and included the following:

This Section applies to all development in the Bega Valley Shire that will disturb the natural ground surface except any ‘Excluded land’ that is not within 200m of an Aboriginal Heritage Information Management System (AHIMS) site or within an Aboriginal Place listed in BVLEP 2013 or within 50m of the mean high-water mark.

·    75% of the combined/total site area is already disturbed, or

·    works do not exceed existing disturbed footprint, or

·    the site has previously been assessed for Aboriginal heritage (such as subdivision applications post 1997 development consent) unless the land is within 200m of an AHIMS site or 50m of mean high-water.

The submissions and conversations with stakeholders during the consultation process highlighted that the exclusions proposed were too broad and may not ensure adequate due diligence assessment in accordance with the Due Diligence Code of Practice, that the exclusions were difficult to define, that ‘one size fits all’ exclusion approach was too prescriptive to accommodate differences in landholdings, that the approach did not take into consideration the likeliness of the development site to be an Aboriginal Place of Significance or contain Aboriginal objects, that new works over an existing old building footprint could possibly still harm objects or cultural values; or that previous studies may not have addressed the exact location or type of development now proposed.

Through the exhibition it became evident that the ‘excluded land’ approach will not achieve either the desired level of risk mitigation with regard to the responsibilities of applicants under the Due Diligence Code of Practice or a clear Council process for assessment of Aboriginal cultural heritage.

Recommendation:

It is recommended that all references to ‘excluded land’ be removed from the draft DCP amendment; that the draft DCP amendment is changed to clarify that a basic due diligence assessment can be prepared by an applicant rather than a suitably qualified person; and that several minor changes are made to clarify the assessment requirements for development applications. These recommended changes are shown as tracked changes throughout Attachment 1.

 

 

 

 

3) The Aboriginal Cultural Heritage Landscape Map

Issue summary:

Several submissions raised issues relating to the Aboriginal Cultural Heritage Landscape Map which included: that the map was difficult to read, that need to include more land in the Wyndham area on the map, the need for more detail on the map such as sites of cultural significance and all AHIMS sites, and properties with previous surveys or Aboriginal cultural heritage reports should be removed from the map.

Staff comment:  

The Aboriginal Cultural Heritage Landscape Map was developed by Council, in collaboration with representatives of the local Aboriginal community and LALCs to indicate land in the Bega Valley Shire that has a higher probability (or risk) of Aboriginal cultural heritage values.

In addition to confirming whether there is any information on AHIMS, the due diligence assessment process involves identifying if there are any other sources of information of which a person is already aware and/or landscape features that are likely to indicate presence of Aboriginal objects. The Aboriginal Cultural Heritage Landscape Map is a tool to help with these aspects of the due diligence assessment process.

The map is not intended to be conclusive. Land that is mapped as having a low probability of Aboriginal cultural heritage values may be found on investigation to contain a significant object or value and vice versa. While previous Aboriginal archaeological studies may be used as sources of information in due diligence assessments, these studies may not have covered the area or activity of interest, values that are present may not have been recognised at the time and each development involves unique circumstances of excavation.

The map was devised for a number of purposes including improving the information available to help landowners, Council staff and other government agencies meet legislative requirements regarding Aboriginal cultural heritage, increasing local awareness of Aboriginal cultural heritage values, and improving the protection of land with cultural significance to local Aboriginal people. Removing an area from the map on the basis that it was the subject of a previous study will not achieve the desired level of risk mitigation with regard to the responsibilities of applicants under the Due Diligence Code of Practice and would undermine other purposes of the map.

Recommendation:

It is recommended that the Aboriginal Cultural Heritage Landscape Map be made available on Council’s website in a format that enables people to zoom into areas of interest and identify properties; and that the proposed ‘Due Diligence Assessment’ section of the draft DCP amendment be changed to include the following:

A statement indicating if previous Aboriginal Cultural Heritage studies have been undertaken on the subject land. Note: if any previous Aboriginal Cultural Heritage studies demonstrate that adequate due diligence was undertaken at that time, those reports can be taken into consideration. Council staff may be able to assist you in locating any previous reports.

 

Engagement planned

No further community consultation is planned; however, if the proposed DCP amendment is adopted by Council, notification will be undertaken.

Financial and Resource Considerations

There are no costs associated with the recommendation to adopt the proposed amendment to BVDCP 2013, other than staff time to prepare this report to Council and finalise the amendment to BVDCP 2013.

Item

$ Excl GST

Expenditure Detail

 

Total Expenditure

Nil

 

Legal /Policy

In NSW landowners have obligations regarding protection of Aboriginal cultural heritage under the Environmental Planning and Assessment Act 1979, National Parks and Wildlife Act 1974 and Heritage Act 1977.

Exhibition of the draft DCP amendment was consistent with Council’s obligations under the Environmental Planning and Assessment Regulation 2000.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The proposed DCP amendment addresses the following goal and strategy of the Bega Valley Community Strategic Plan 2040:

·    Goal 1: We are co-operative, caring and enjoy a culturally rich community life.

·    Strategy 2: Respect and promote our cultural heritage and support cultural diversity.

The proposed DCP amendment also addresses Goal 3 of the South East and Tablelands Regional Plan 2036: Healthy and connected communities, and Direction 23: Protect the region’s heritage. It aims to achieve the following actions from the plan:

·    Action 23.1 undertake and implement heritage studies, including regional Aboriginal cultural heritage studies, to inform local strategies.

·    Action 23.4 provide resources for heritage advice to inform planning processes.

·    Action 23.5 acknowledge cultural heritage assets where appropriate and consider how these assets can add value to a development.

Environment and Climate Change

Application of the proposed DCP amendment will not increase risk to environment or climate change.

Economic

The development of provisions relating to Aboriginal Heritage in the draft DCP amendment will have a positive economic impact by reducing the risk of project assessment and delivery being delayed through inadequate consideration of Aboriginal cultural heritage values or inadvertent harm to Aboriginal objects.

Risk

The risks for anyone undertaking site disturbance works of not undertaking adequate due diligence assessment include:

·    damage to Aboriginal cultural heritage values

·    prosecution if Aboriginal objects are harmed (even unintentionally)

·    project interruption (time, cost).

The draft DCP amendment aims to minimise risk to Aboriginal cultural heritage values, individuals and Council by providing:

·    details of publicly available source of information so due diligence assessment can be undertaken effectively when planning or undertaking works

·    clarity around levels of heritage assessment required for prospective developers

·    increased public awareness of cultural heritage issues to aid in the protection of Aboriginal cultural heritage objects and places of significance.

Social / Cultural

Increasing awareness of Aboriginal cultural heritage values will have positive social and cultural impact by improving the protection of land with cultural significance to local Aboriginal people, encouraging consultation with the Aboriginal community about proposed development and enhancing respect for cultural values among the general community.

Attachments

1.         Proposed DCP Chapter 5.1 Aboriginal Heritage for adoption (tracked changes)

2.         Summary of feedback on draft DCP amendment Chapter 5.1 Aboriginal Heritage

 


Council

16 December 2020

Item 8.1 - Attachment 1

Proposed DCP Chapter 5.1 Aboriginal Heritage for adoption (tracked changes)

 

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Council

16 December 2020

Item 8.1 - Attachment 2

Summary of feedback on draft DCP amendment Chapter 5.1 Aboriginal Heritage

 

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Council 16 December 2020

Item 8.2

 

8.2.  Planning proposal to permit dwellings on deemed concessional lots     

This report recommends that Bega Valley Shire Local Environmental Plan 2013 is amended to incorporate provisions to permit consideration of dwellings on deemed concessional lots.

Director Community Environment and Planning  

Officer’s Recommendation

That Council:

1.    Authorise Council officers to submit the planning proposal (Attachment 1) and supporting information to the Department of Planning, Industry and Environment requesting a Gateway Determination under Section 3.34 of the Environmental Planning and Assessment Act 1979.

2.    Consider a further report from staff in relation to feedback received during public and             agency exhibition undertaken as part of the Gateway process.

 

Executive Summary

State Environmental Planning Policy (Rural Lands) 2008 (Rural SEPP) amended Bega Valley Shire Local Environmental Plan 2002 (BVLEP 2002) in 2008 by removing the clauses that enabled the subdivision of land to create concessional lots and approval of a dwelling on a deemed concessional lot.

As a result of the changes to BVLEP 2002, there was an unintended consequence that resulted in Council being able to consider the erection of a dwelling on most lots within rural areas. The intention of the Rural SEPP was to stop concessional lot subdivision but not to remove existing or create additional dwelling entitlements.

Bega Valley Local Environmental Plan 2013 (BVLEP 2013) does not currently provide for consideration of dwellings on deemed concessional lots that existed before the Rural SEPP, nor provisions that permit dwellings on the majority of rural lots that existed after the Rural SEPP. This report considers how Council might seek to reinstate the previous provisions to enable consideration of dwellings on deemed concessional lots.

Background

At the meeting of 9 October 2019, Council considered a report on the outcomes of the exhibition of the draft Rural Living Strategic Directions Report (which subsequently became the adopted Rural Residential Strategy in February 2020). The report of 9 October 2019 considered issues raised in submissions to the draft including submissions that dwelling opportunities on certain rural properties had been lost following the gazettal of BVLEP 2013. The staff response in the report stated that this issue was beyond the scope of the project, and that Council staff would prepare a separate report on this matter for consideration at a future Council meeting.

Following further submissions on the matter to the exhibition of the revised draft Rural Residential Strategy, Council resolved on 5 February 2020: “That Council staff prepare a report by the end of this calendar year, to allow Council to consider the issue of deemed concessional lots”. This report has been prepared in response to that resolution.

Existing holdings

An existing holding is all the adjoining/adjacent land in a rural area that was owned by a person/s on 7 January 1966. Each existing holding could have a dwelling, and in addition, prior to the implementation of the Rural SEPP in 2008, Council could consider subdivision for the purposes of dwellings within existing holdings and/or the approval of dwellings under the provisions of BVLEP 2002. These provisions were commonly known as concessional lot subdivisions and deemed concessional lots.

Concessional lot subdivisions

Concessional lot subdivision provisions existed in Bega Valley Shire’s LEPs from 1987 until the Rural SEPP in 2008. These provisions permitted the creation of lots between 2ha and 10ha for dwellings in rural areas. Concessional lot subdivisions were created from intact existing holdings or the largest part of an existing holding. The maximum number of concessional lots that could be created from an existing holding was determined by a formula based on the area of the existing holding.

Deemed concessional lots

Under Bega Valley Local Environmental Plan 1987 (BVLEP 1987) and BVLEP 2002, Council could grant consent to the erection of a dwelling house on an existing lot (including a Crown portion) within rural zones. Such lots were “deemed” to be created under the concessional lot subdivision provisions for existing holdings and were included in the yield calculations for the maximum number of concessional lots that could be created for the purposes of a dwelling from an existing holding.

Importantly, the provisions stated that the effect of approving a lot as a deemed concessional lot must be substantially the same as if the land was subdivided as a concessional lot. The notes accompanying BVLEP 2002 explain this in the following way: “This provides for crown portions to have a dwelling entitlement where a lot of similar size and impact could otherwise be created under [the concessional lot provisions]. With respect to lot area, generally the crown portion is to be commensurate with the 2-10ha requirement under [the concessional lot provisions] although there may be mitigating circumstances that permit a lot of larger area, provided that all other assessment criteria under the plan are satisfied.”

Under BVLEP 2002, the assessment criteria that had to be met for a deemed concessional lot to be eligible for consideration of a dwelling included that the land or development:

·    has a suitable dwelling house site, and

·    will not, because of its use, affect the economic viability of existing farmland, and

·    is not located near operational aspects of a farm, and

·    is located outside areas designated as Class 1 or 2 in the New South Wales Department of Agriculture’s "Agricultural Land Classification Atlas, Far South Coast Region New South Wales" dated August 1986, and

·    will not be part of an inholding within a national park within the meaning of the National Parks and Wildlife Act 1974, and

·    will not have a dwelling located on it within 100m of the boundary of a national park or nature reserve within the meaning of the National Parks and Wildlife Act 1974, and

·    will have legal and practical access to an existing Council-maintained public road, and

·    will not create a need for any additional access onto a State highway or an arterial road, and

·    will have a dwelling site located outside any areas of bushfire hazard identified by the Council, and

·    will be serviced by existing electricity reticulation or short extensions from the existing reticulation network, or will utilise alternative stand-alone electric power systems, and

·    has soils suitable for on-site sewage management disposal, and

·    does not contain or adjoin perennial streams and does not have access by easement for drawing water from perennial streams, and

·    will not adversely affect important features of cultural or natural heritage or disrupt regional ecological systems or processes

State Environmental Planning Policy (Rural Lands) 2008

Concessional lot provisions were removed from BVLEP 2002 by the application of the Rural SEPP on 9 May 2008. This was one of the primary objectives of the Rural SEPP in line with the outcomes of the Central West Rural Lands Inquiry in 2007. Other purposes of the Rural SEPP included: facilitating the orderly and economic use and development of rural lands for rural and related purposes; assisting in the proper management, development and protection of rural lands; and minimising land use conflict.

The implementation of the Rural SEPP removed clauses from all NSW councils’ LEPs relating to concessional lot subdivision, including provision for deemed concessional lots.

These changes inadvertently enabled dwellings to be erected on almost all existing lots in rural areas because there was no longer a requirement for them to qualify as a deemed concessional lot. These provisions remained in place from 9 May 2008 until the commencement of BVLEP 2013 on 2 August 2013.

Options

1) Do nothing

In the 12 years since the implementation of the Rural SEPP in 2008 Council has been made aware of five cases where landowners may have lost dwelling entitlements due to the removal of deemed concessional lot provisions. The imminent removal of concessional lot provisions was very widely known in the Bega Valley Shire (and rural NSW) at the time, and Council received many development applications for concessional lot subdivisions in the period immediately prior to the implementation of the Rural SEPP. Planning instruments (such as LEPs and NSW Government legislation) are continually being amended, which impacts on the development potential of individual sites at various points in time. The implementation of the Rural SEPP is just one example of such an amendment.

2) Prepare a planning proposal to reinstate the deemed concessional provisions as they existed in BVLEP 2002 on 8 May 2008 (the day before gazettal of the Rural SEPP)

This is the recommended option. It is noted that while DPIE has not endorsed this option, it has also not ruled it out.  To mitigate DPIE’s concerns regarding the scale of unplanned rural development that may result from this proposed amendment, as well as achieve Council’s and the NSW Government’s objectives with regard to rural land use planning, it is proposed to include clarification that deemed concessional lots must be between 2ha and 10ha in size.

Both the adopted Bega Valley Shire Rural Residential Strategy 2020 and South East Tablelands Regional Plan 2036 set out criteria for future rural residential development. These criteria are aimed at: ensuring that farmers have the right to farm by minimising land use conflict from non-agricultural land uses; maximising use of existing physical, social and community infrastructure; and avoiding areas affected by natural hazards or high environmental or cultural values. These criteria ensure that future rural residential development supports our towns and villages, is consolidated near existing developments and infrastructure and does not impact on the Shire’s natural advantage.

Reinstating the deemed concessional lot provisions without clarifying the intention of BVLEP 2002 to primarily permit deemed concessional lots on parcels of land between 2ha and 10ha could enable the development of many hundreds of lots on or near viable agricultural landholdings or in remote, sensitive locations, This would undermine the purpose of Council’s Rural Residential Strategy, expose residents and emergency services personnel to increased risk and add to road and other infrastructure capital and maintenance burden for Council.

Council officers are of the opinion that reinstating deemed concessional lot provisions only on lots that are substantially the same size as a concessional lot will reinstate the dwelling entitlements that were inadvertently lost through the implementation of the Rural SEPP without creating an undue burden on Council’s infrastructure or services or significantly undermining the intention of Council’s or the NSW Government’s strategic planning in rural areas. Mitigation of potential risks from natural hazards or to the environment can be managed through the application of relevant current planning legislation in the development assessment process. This includes the Planning for Bushfire Protection Guidelines 2019 and the Biodiversity Conservation Act 2016

It is noted that Council will still retain some flexibility in the application of the criteria for a deemed concessional lot through the application of BVLEP 2013 Clause 4.6, which permits variations to standards contained in the BVLEP 2013.

3) Adopt the new DPIE model clause for erection of dwelling houses on land in certain rural and environmental protection zones.

Since the adoption of BVLEP 2013, DPIE has amended the model clause for considering dwellings in rural areas from: “a lot created under an environmental planning instrument before the plan commenced on which the erection of a dwelling house was permissible immediately before that commencement,” to: “a lot created before the plan commenced on which the erection of a dwelling house was permissible immediately before that commencement.

It is noted that immediately before the commencement of BVLEP 2013, BVLEP 2002 permitted the approval of dwellings on the majority of rural lots within the Shire, including Crown portions and parish lots. As discussed elsewhere in this report, this situation was not a decision made by Council, but an unintended consequence of the implementation of the Rural SEPP.

It is acknowledged that the unintended outcome of the Rural SEPP was contrary to the objectives of both the Rural SEPP itself as well as BVLEP 2002, which both aimed to minimise land use conflict and fragmentation of rural lands. The new model clause is not suitable for the Bega Valley Shire because it would reinstate dwelling entitlements that were inadvertently created by the Rural SEPP, leading to poor planning outcomes.

Under this option, more rural residential lots could be created and occupied close to or within large commercial farms. This could have a range of impacts including further fragmentation of rural land, increased land use conflicts and increased demand for infrastructure and services in remote areas. It would also undermine Council’s and the NSW Government’s strategic planning for the provision of rural residential development to provide opportunities for rural lifestyle in appropriate locations in rural areas as discussed in option 2 above.

4) Amend the Rural Residential Strategy to permit owners to lodge site specific planning proposals

A fourth option could be to amend the Rural Residential Strategy to support lodgement of planning proposals that amend the minimum lot size map for parcels where it has been demonstrated that they would have met the deemed concessional lot provisions of BVLEP 2002 immediately prior to the introduction of the Rural SEPP. Amending the Rural Residential Strategy would require endorsement by DPIE. The preparation of site specific planning proposals is not recommended because it would place considerable cost on owners of land in addition to normal development application costs, and the outcome would be less certain because the planning proposal process includes referrals to NSW Government agencies who require detailed reports and may object to planning proposals proceeding.

Community and Stakeholder Engagement

Engagement undertaken

No community consultation has yet been undertaken by Council for this planning proposal. 

Council officers have consulted with DPIE regarding options to reinstate deemed concessional lot provisions.  During this consultation, DPIE clarified that the intent of the Rural SEPP was to remove the clauses that enabled councils to approve concessional lots, but not to remove existing dwelling entitlements nor create additional dwelling entitlements. DPIE has advised Council that the reintroduction of planning provisions in BVLEP 2013 to reinstate dwelling entitlements that existed immediately prior to the Rural SEPP would not be inconsistent with the intent of the Rural SEPP. However, DPIE has raised several issues relating to this possible course of action.

During the consultation, DPIE requested information to better understand the scale of the issue and planning implications of reinstating deemed concessional lot dwelling entitlements. There are currently 1,663 existing holdings on old titles across the Shire, of which approximately 132 are consistent with the deemed concessional lot definition of being between 2ha and 10ha in size. It is not clear whether there is still capacity for dwellings within all these relevant existing holdings.

This number increases to 1,134 if lots between 2ha and 16ha are eligible for consideration as deemed concessional lots due to “mitigating circumstances”. An exact figure or identification of affected parcels of land cannot readily be determined because of the flexibility of the deemed concessional lot provisions and the amount of research required to asses each holding to determine if it would qualify as a deemed concessional lot.

DPIE noted that, since the Rural SEPP came into effect 12 years ago, there have been several changes to legislation and policy that would affect development consent for a rural dwelling, such as new bushfire, biodiversity and access provisions. DPIE raised concerns that reinstating dwelling entitlements may create false expectations about the development potential of a lot, if development consent cannot be granted due to these constraints or if dwellings were approved on lots and subsequently created significant planning issues. Council officers acknowledge that it may be the case that some of the lots will be significantly constrained and note that many Crown portions are located either within existing farm holdings or in remote, marginal country.  Development consent may not be granted on these lots were planning matters cannot be adequately addressed.

Engagement planned

Community engagement for the planning proposal will be carried out in accordance with Council’s Community Engagement Strategy and Community Engagement and Communications Toolkit.  The project is assessed to be Level 2 - Consult on the IAP2 spectrum.

The Gateway Determination will confirm community consultation requirements. It is likely that the planning proposal will be exhibited as a ‘low’ impact proposal for a period of not less than 14 days in accordance with Section 5.5.2 of A Guide to Preparing Local Environmental Plans.

Council will follow community and agency consultation requirements as per the Gateway Determination and Bega Valley Shire Community Engagement Strategy. It is planned to advertise the planning proposal on Council’s website and in local newspapers.

Following community and agency consultation, a further report will be prepared for Council outlining feedback on the planning proposal and any recommended changes in response to submissions prior to resolving whether to proceed with amending BVLEP 2013.

Financial and Resource Considerations

The preparation of the planning proposal and its public exhibition will be undertaken as part of Council’s regular work program and within the adopted 2020-21 budget.

Item

$ Excl GST

Expenditure Detail

 

Advertising

$500

Total Expenditure

$500

Source of Funds

General Fund

$500

Total income available

$500

Total Project Capital Cost

Nil

Total Available Construction Funding

N/A

Project Funding Shortfall

Nil

 

Legal /Policy

The planning proposal has been prepared in accordance with Section 3.33 of the Environmental Planning and Assessment Act 1979 and the NSW Department of Planning, Industry and Environment’s A Guide to Preparing Planning Proposals (December 2018).

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The planning proposal does not align with any Council strategies but instead seeks to reinstate dwelling entitlements for deemed concessional lots that were inadvertently lost with the application of the Rural SEPP in 2008.

Environment and Climate Change

The planning proposal has regard to environmental considerations and sustainability principles.  The extent of any environmental impacts is expected to be limited due to the relatively small number of lots affected and the application of the assessment criteria for deemed concessional lots.  Site-specific environmental impacts would be considered as part of any development application, should the Minister for Planning and Public Spaces endorse the planning proposal.

Economic

The planning proposal may increase property values of affected land; however, the extent of this impact is expected to be limited to approximately 132 rural lots.

Risk

The planning proposal may increase risk to life from placing dwellings in remote areas as well as increase the risk of land use conflict with existing agricultural operations. However, the extent of any additional risks is expected to be limited due to the relatively small number of lots affected and the application of the assessment criteria for deemed concessional lots at the development application stage.

Social / Cultural

The planning proposal may cause social impacts from placing dwellings in remote areas as well as impact cultural values. However, the planning proposal may also have positive social benefits in reinstating dwelling opportunities for certain rural landholders. The extent of any social or cultural impacts is expected to be limited due to the relatively small number of lots affected and the application of the assessment criteria for deemed concessional lots.

Attachments

1.         Deemed concessional lots planning proposal

 


Council

16 December 2020

Item 8.2 - Attachment 1

Deemed concessional lots planning proposal

 

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Council 16 December 2020

Item 8.3

 

8.3.  Inclusion of new Natural Disaters Clause in Bega Valley Local Environmental Plan 2013     

Council has been invited to provide formal confirmation that it wishes to incorporate the new Natural Disasters Clause into Bega Valley Local Environmental Plan 2013.

Director Community Environment and Planning  

Officer’s Recommendation

That Council provide formal confirmation to the Department of Planning, Industry and Environment that it wishes to incorporate the Natural Disasters Clause into Bega Valley Local Environmental Plan 2013.

 

Executive Summary

The Department of Planning, Industry and Environment (DPIE) developed a Natural Disasters Clause to support the rebuild and repair of dwellings following a natural disaster as an optional provision for inclusion in councils’ Local Environmental Plans. This report recommends that Bega Valley Shire Council provide formal confirmation to DPIE that it wishes to incorporate the Natural Disasters Clause into Bega Valley Local Environmental Plan 2013 (BVLEP 2013).

Background

The Natural Disasters Clause is proposed to be inserted in Local Environmental Plans in response to recent bushfires and floods, which impacted thousands of homes across NSW.  The Natural Disasters Clause clarifies that, despite any other provisions in the relevant Local Environmental Plan, approval to repair or rebuild a dwelling, including a secondary dwelling, can be granted if the original lawful dwelling was destroyed or damaged in a natural disaster. A merit assessment is still required; however, the rebuild or repair cannot be refused based on any development standards in a Local Environmental Plan.

Council staff indicated Council’s intention to opt-in to the Natural Disasters Clause in August 2020 and made representations to DPIE to this effect. Council has subsequently been invited to provide formal confirmation that it wishes to incorporate the Natural Disasters Clause into BVLEP 2013. Following receipt of formal confirmation from Council, DPIE will progress an amending State Environmental Planning Policy (SEPP) that will insert the Clause into BVLEP 2013.

The wording of the Natural Disasters Clause is:

Dwelling house or secondary dwelling affected by natural disaster

(1) The objective of this clause is to enable the repair or replacement of lawfully erected dwelling houses and secondary dwelling that have been damaged or destroyed by a natural disaster.

(2) This clause applies to land in the following zones—

(a) [set out the zones to which the clause is to apply],

(3) Despite any other provision of this Plan, development consent may be granted to development on land to which this clause applies to enable a dwelling house or secondary dwelling that has been damaged or destroyed by a natural disaster to be repaired or replaced if—

(a) the dwelling house or secondary dwelling was lawfully erected, and

(b) the development application seeking the development consent is made to the consent authority no later than 5 years after the day on which the natural disaster caused the damage or destruction.

The zones to which the Natural Disasters Clause would apply in the Bega Valley Shire are RU1, RU2, RU4, RU5, R2, R3, R5, B4, E3 and E4.

Options

Council could opt to not include the new Natural Disasters Clause in BVLEP 2013 as BVLEP 2013 already contains provisions which permit the replacement of lawfully erected dwellings in the RU1, RU2, RU4, R5, E3 and E4 zones (under Clause 4.2A(5)). However, the adoption of the Natural Disasters Clause will extend these provisions to other zones.

The Natural Disasters Clause will streamline development approvals for bushfire rebuilds as it will remove the requirement to provide justification for variations of standards, such as the minimum lot size where there have been planning changes since the dwelling or secondary dwelling were lawfully erected. This will particularly benefit rebuilds in villages like Quaama where existing allotments are typically below the minimum lot size.

Should Council not opt into the new Clause at this stage, a future planning proposal would be required to include the Clause in BVLEP 2013 at a subsequent date, should Council wish to proceed that way.

Community and Stakeholder Engagement

Engagement undertaken

Council staff provided input to the drafting of the Natural Disasters Clause in August 2020.

Engagement planned

Notification to the development professionals group as well as the wider community would occur when the amendment to BVLEP 2013 comes into effect. No further engagement is planned regarding this matter.


 

Financial and Resource Considerations

There is no cost to Council, other than staff time to participate in drafting the Clause, reporting the matter to Council and engaging with local stakeholders.

Legal /Policy

The Natural Disasters Clause will amend the provisions of BVLEP 2013.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The Natural Disasters Clause will assist Council to support natural disaster rebuilds by simplifying and streamlining the development application process for some applicants.

Environment and Climate Change

Any impacts on environment and climate change will be addressed through the standard development assessment process. This amendment to BVLEP 2013 will not create additional development potential and therefore will not create additional impacts on the environment beyond that which existed prior to the destruction of lawful dwellings from a natural disaster.

Economic

Application of the Natural Disasters Clause will have a positive economic benefit to those landowners affected by natural disaster through reducing the costs and complexity of the development assessment process.

Risk

The Natural Disaster Clause only applies to lawfully approved development and will not create any additional risk to people or the environment.

Social / Cultural

Application of the Natural Disasters Clause will have a positive social benefit to those landowners impacted by natural disaster through reducing the costs and complexity of the development assessment process.

Attachments

Nil

  

 


Council

16 December 2020

 

 

Staff Reports – Community, Culture and Leisure

 

16 December 2020

  

9.1              Bega War Memorial Swimming Pool Concept Plan............................................ 56

9.2              Eden All-inclusive Playspace - Concept Design................................................... 70

9.3              Swimming Pool Fees & Charges- Additional Fee Proposal................................. 87


Council 16 December 2020

Item 9.1

 

9.1Bega War Memorial Swimming Pool Concept Plan     

This report is seeking Council endorsement of the Draft Bega War Memorial Swimming Pool Concept Plan to enable further project development and identification of suitable external funding sources and submissions of funding applications for the project.

Director Assets and Operations  

Officer’s Recommendation

1.    The report be received and noted.                                                                                                   

2.   Council endorse the attached Draft Bega War Memorial Pool Concept Plan, as exhibited with the Draft Swimming Pools Strategy 2019.

3.    Council permit Council officers to proceed with Bega War Memorial Pool project planning and submit grant applications to source project funds based on an endorsed concept

 

Executive Summary

Bega War Memorial Pool was officially opened in 1963 by the former Municipality of Bega. Over the last five decades, the facility has been an important part of Bega and the wider Bega Valley Shire. 

Until refurbishment and upgrade of the Sapphire Aquatic Centre, Bega War Memorial Pool was the highest attended facility in the Bega Valley. Of the five outdoor swimming pools in the Bega Valley, the facility still provides the highest swimming pool attendance, learn to swim and school squad program participation.

Based on the adopted 2017 Leisure and Recreation Asset Management Plan, the Bega War Memorial Pool is due for renewal in 2023. Currently the renewal project is unfunded. This report is seeking Council endorsement of the Draft Bega War Memorial Swimming Pool Concept Plan to enable further project development and identification of suitable external funding sources and submissions of funding applications for the project.

Background

At the Council meeting of 11 December 2019 Council considered the report BVSC Swimming Pools Strategy and resolved to exhibit the strategy for public exhibition with minor edits. The project to Upgrade the Bega War Memorial Pool and Draft Concept Plans were included in the exhibited strategy.

After the deferment of the Swimming Pools Strategy and Swimming Pools Special Rate Variation (SRV) discussion, there are no confirmed sources of funding for the planned renewal of this facility. Bega Valley Shire Council will need to rely on sourcing grant funding for this project to proceed.

The adoption of the attached concept plan will demonstrate a firm commitment to this project for the community, as well as assist officers with progressing planning and grant funding applications.

Options

Option 1: Council endorse the current Draft Bega War Memorial Concept Plan, presented in late 2019 at media and key stakeholder briefings, and presented at the six community meetings held across the Shire; and as exhibited through the Draft Swimming Pools Strategy 2019 and attached to this report.

Option 2: Council re-exhibit the current Bega War Memorial Concept Plan for community engagement and feedback. Resourcing to develop and implement a new engagement strategy/plan will be required with a further report to Council on the consultation outcomes.

Option 3: Council to continue to maintain the existing facility until the pools strategy is further developed developed or substantial asset failure. The current facility age and condition will continue contributing to higher operational costs. Council will be exposed to risk of extended closure or expensive reactive maintenance due to asset failure. This may also have a significant impact on community health and water safety education.

Community and Stakeholder Engagement

Aquatic and Leisure Architecture and construction consultants, Facility Design Group (FDG), were engaged to develop a concept plan and opinion of cost for this project. A working group consisting of council staff and current and previous facility operators was created to work with FDG to develop the initial concept. This was developed considering the historical and current limitations of the existing facility, current and future community needs, applying modern facility standards and typical expectations and applying BVSC resourcing considerations. A copy of the Draft Bega War Memorial Swimming Pool Concept Plan included in the 2019 Swimming Pools Strategy Discussion Paper is attached to this report. An animation video demonstrating the draft concept plan is available via this link: https://vimeo.com/486171174/566e5161dc

Engagement undertaken

The need to renew Bega Pool is well known. The Bega War Memorial Pool concept plans were included as part of the Draft Swimming Pools Strategy Discussion Paper. An engagement plan was developed in consultation with the BVSC Communications team to engage with stakeholders and the broader community as part of the Draft Swimming Pools Strategy Discussion. This was presented at media and key stakeholder briefings and presented at the six community meetings held across the Shire. Articles were published and communications distributed by local media outlets such as Bega District News, ABC South East and About Regional, that focused on the Bega War Memorial Concept plans.

Engagement planned

Once adopted, further engagement will be implemented to inform the community regarding the project. This will include further information explaining the concept, what the key features are and why they are included in the project.

As the project planning develops a Project Control Group (PCG) will be formed to assist with representing primary stakeholders and user groups of the facility throughout the project. This will include BVSC staff, current facility operators, BVSC Access and Inclusion Committee, local schools’ representative, local medical providers representative, chamber of commerce/tourism representative. Future funding partners will also be included in the PCG.

Financial and Resource Considerations

With the deferment of the Swimming Pools Strategy and the associated Special Rate Variation , there is no identified source of funding for the renewal and upgrade of the Bega War Memorial Swimming Pool. Due to facility condition and the renewal year approaching, further planning needs to commence, and funding identified for this project to proceed. Based on the current financial environment, grant funding is going to be the needed to achieve this project and outcomes.

Item

$ Excl GST

Expenditure Detail

 

Bega War Memorial Concept Design Planning and Opinion of Cost

$9,860,000*

(Cost 2020 pending annual escalation based on consultant feedback)

 

 

Total Expenditure

$9,860,000

 

 

Source of Funds

 

<approved budget|revenue funded>

$0

Future Project Grant Funding.

$9,840,000

Recreation SRV 2022 – (further project planning / business case development to support funding applications)

$20,000

Total income available

 

 

Total Project Capital Cost

                               $9,860,000

Total Available Construction Funding

Project Funding Shortfall

                               $9,860,000

Financial Option Impacts | Life Cycle Costing

The adopted management model for the new facility will have an overall impact on the life cycle costing. The below operational and income costs are based on maintaining the existing Council/Contractor management model, whereby Council is responsible for contractor management fee and facility maintenance/utilities cost. Changes to this management model, will also have an impact on the lifecycle cost of the facility moving forward. Facility operating models will continue to be reviewed and assessed as required to deliver best use of the site, management of the asset and value for the available resources.

Financial modelling included in the Draft Swimming Pools Strategy took into consideration the ongoing capital, operational and asset renewal costs of the different facility types throughout the asset lifecycle. It was identified that an outdoor extended season facility would be most financially sustainable for Council and delivery the best value and use for the community in the long term based on the ongoing operational and capital costs.

The concept design was also developed to consider allowing for enclosure of the site if that was to be identified as a future development or improvement.

Ongoing Financial Impacts

$ Excl GST

Capital Investment Upgrade, (Opinion of probable Cost attached draft concept plan)

$9,860,000

Annual maintenance and operational costs (2019)

 $178,000

Depreciation costs (2019)

 $181,000

User charges (annual income) (nil based on current contractor operating model)

 $0

This report is seeking Council endorsement of the Draft Bega War Memorial Swimming Pool Concept Plan to enable further project development and submission of external funding applications for the project. If grant funding is sourced for this project it will reduce the current pools asset renewal / modern upgrade funding shortfall.

Legal /Policy

Local Government Act 1993 (NSW) Division 2- Use of Community Land. Section 36I states the core objectives for management of community land categorised as general community use are to promote, encourage and provide for the use of the land, and to provide facilities on the land, to meet the current and future needs of the local community and of the wider public:

(a)  in relation to public recreation and the physical, cultural, social and intellectual welfare or development of individual members of the public, and

(b)  in relation to purposes for which a lease, licence or other estate may be granted in respect of the land (other than the provision of public utilities and works associated with or ancillary to public utilities).

Work Health & Safety Act 2011 (NSW) and Regulation 2017 (NSW) have the main objective to provide for a balanced and nationally consistent framework to secure the health and safety of workers and workplaces

Public Health Act 2010 (NSW) and Regulation 2021 (NSW) aims to promote, protect and improve public health. Part 3 Environmental Health; Division 3 Control of Public Swimming Pools and spas stipulates the requirements for swimming pools to comply with.

Disability Discrimination Act 1992 aims to eliminate, as far as possible, discrimination against persons on the grounds of disability. This project would ensure fair and equitable access to the facilities and services offered.  Disability (Access to Premises — Buildings) Standards 2010 provide further direction on how to achieve this.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

This project aims to support Council to meet the following strategic outcomes.

·    Community Strategic Plan Outcome 1: Active and Healthy Communities and Delivery Program 2017-2022

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

·    1.2.7: Construct and maintain swimming pools

·    1.2.7.1 Continue concept planning process for renewal of Bega Pool as directed by the adopted BVSC Recreation Asset Management Plan

·    Asset Management Plan (AMP)- Leisure and Recreation 2017- Bega Pool has been identified for renewal in 2023. The AMP identified that a swimming pool shell has an estimated asset life of 60 years. It along with other amenities buildings are approaching the end of their useful like.  It has already been identified that the size (33 yrd) of the existing swimming pools does not have capacity to meet current or future facility demands, industry or accessibility standards. Similarly, due the age and condition of facilities, it is not considered feasible to look at refurbishment or upgrade of the existing facility as a viable option, as this will not achieve required project outcomes. 

·    Exhibited Draft Swimming Pools Strategy 2019.

 

Environment and Climate Change

Swimming pools are resource intensive facilities, particularly electricity and water, which is even more prevalent in ageing facilities such as Bega Pool. The multiple pool/combined filtration system layout lends to more opportunity for water leaks. System inefficiency and increased water consumption also increases chemicals required to treat the pool and electricity required to heat and maintain pool water temperature.

A new facility will be able to utilise improvements in technology including higher efficiency plant and equipment, the building orientation and layout can be designed maximise use of solar electricity/water heating systems to offset operation costs,  design rain water harvesting and backwash re-use systems for use where applicable, use of environmentally friendly building materials and constructions systems aimed to reduce environmental footprint and impact, whilst also identifying opportunity for re-use and recycle of existing equipment and materials. Capacity will be allowed for the introduction of future technological development which is currently not possible within the existing facility layout. Improved efficiency, and addressing existing operational limitations, will result in a more effective use of allocated resources.

For the last 57 years, the Bega War Memorial Swimming Pool has provided generations of children and families the opportunity to learn to swim, has provided a safe location to escape the summer heat, for health, recreation and fitness. This project will help to secure this facility now and into the future for both our current community, and for the community over many years to come.

Economic

Redevelopment of the Bega War Memorial Pool will provide a range of economic opportunities for the Bega Valley. Opportunities include:

·    The facility will become a destination for residents and visitors who live throughout the Shire and beyond. It will also link well to the Bega Sporting Complex project in establishing the ‘Bega Regional Sporting Hub’

·    Improved financial viability of facility through improved assets, accessibility and features to increase range of user groups, programs and attendance

·    New aquatic facility plant and equipment will reduce operational costs through efficiency and addressing historical issues associated with ageing infrastructure i.e water leaks, facility design.

·    Incorporating environmentally sustainable design principles will reduce operational costs of the facility through elements such as Solar PV, rainwater harvesting for irrigation,

·    Public swimming pools are specialist construction projects and there will be an economic flow on effect to Council and the local economy. Local trades and suppliers will be able to be utilised, as well as hospitality and accommodation providers where specialist trades are sourced outside of the Bega Valley.

Risk

The current facility does not meet accessibility or modern standards for swimming pool access, change/shower facilities or car parking.

The age and condition of various assets within the facility are no longer fit for purpose and structural asset failure could lead to injury, expensive unplanned maintenance works or extended closure of the facility. If either of these outcomes occur Council would need to manage public liability claims, non-budgeted reactive expenditure or negative community response to facility closure without planning/funding in place to renew facility.

The work health and safety environment is substantially different to when the existing facility was built. Requirements around confined spaces, chemical handling, electrical wiring, manual handling, working at heights have all changed substantially.

Public health legislation requirements for swimming pool water quality and maintenance are also substantially different. This includes separating different bodies of water, in particular high use and high-risk pools such as wading/splash and program/therapy pools from lap pools. There is also requirement for improving efficiency of filtration and chemical dosing systems to reduce risk of disease transmission 

A new facility will minimise exposure of the above risk to Council, employees, contractors and users. Similarly, will ensure that dignified, equitable, cost-effective and reasonably achievable access to buildings, facilities and services is provided for all members of our community.

Social / Cultural

Bega is one of the larger economic, medical, educational, professional and sporting hubs of the Bega Valley Shire, with the capacity to service a large percentage of the Shire based on the centralised location, transport and position on our major road network.

Similarly, Bega’s inland position means the pool is an important asset to the community throughout the summer months for social, recreational and exercise-based activities, but also for the provision of swimming and water safety programs and development of these skills by various groups and members of our community.

In terms of aquatic facility attendance and programs, the Bega War Memorial Pool is the second highest attended facility in the Shire, delivers the highest number of school and squad-based swimming programs and second largest number of swimming lessons. If the facility was to be closed due to failure of a major asset, this would have a large impact on residents, facility users, six local schools and community groups who regularly use the pool.

The benefits of water-based exercise and recreation for people with a disability, mobility difficulties, injuries and rehabilitation are widely published. With an ageing population and the pool’s proximity to the South East Regional Hospital, a new purpose built, accessible facility will be highly beneficial to segments of our population who have limited access to the existing facility or in being able to access the Sapphire Aquatic Centre in Pambula Beach.

The opportunity to provide improved facility access, amenities, car parking, functional space and facility layout, whilst also including additional recreational features such as water features and slides, will increase both the viability and patronage of the facility, as well as the ability to accommodate different user groups and types simultaneously.

Attachments

1.         Bega War Memorial Pool Draft Concept 1.2 - Floor Plan

2.         Bega War Memorial Pool Draft Concept 1.2 - Perspectives

3.         Bega War Memorial Pool Concept Design Feedback V1- January 2019

4.         Bega War Memorial Pool concept design strategy - Facility Design Group

5.         Bega War Memorial Pool Concept Development Meeting Summary 2018

 


Council

16 December 2020

Item 9.1 - Attachment 1

Bega War Memorial Pool Draft Concept 1.2 - Floor Plan

 

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Council

16 December 2020

Item 9.1 - Attachment 2

Bega War Memorial Pool Draft Concept 1.2 - Perspectives

 

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Council

16 December 2020

Item 9.1 - Attachment 3

Bega War Memorial Pool Concept Design Feedback V1- January 2019

 

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Council

16 December 2020

Item 9.1 - Attachment 4

Bega War Memorial Pool concept design strategy - Facility Design Group

 

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Council

16 December 2020

Item 9.1 - Attachment 5

Bega War Memorial Pool Concept Development Meeting Summary 2018

 

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Council 16 December 2020

Item 9.2

 

9.2Eden All-inclusive Playspace - Concept Design     

This report provides an update on the progress of the Eden All-inclusive Playspace project and seeks endorsement from Council on the Final Concept Design.

 

Director Assets and Operations  

Officer’s Recommendation

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

2.    That Council endorse the final concept design for the Eden All-inclusive playspace.

3.    That Council delegate authority to the General Manager to procure items of play equipment specified by the landscape architect.

That Council delegate authority to the General Manager, if required, to endorse amendments to the design to fit within the project budget.That Council note the playground will be in replacement of the nearby Apex Park playgroundThat Council note the plans to downsize the Memorial Park Play equipment located on Calle-Calle Street at its time of renewal to offset the increased costs of the Barclay Street playground

 

Executive Summary

To assist with progressing the delivery of Eden’s All-inclusive playspace, funded by the Federal Government, endorsement is sort  from Council on the final concept design, which has been based on the NSW Government’s Everyone Can Play guidelines.  These same guidelines were used to develop the upgrade to the Lot Stafford all-inclusive playspace in Tathra as well as Bermagui’s all-inclusive playspace.

Extensive consultation has been undertaken with the community to help shape this final concept design.  This report summarises the consultation and how it has contributed to this final concept design.

Background

Council has received confirmation of $400,000 funding from the Federal Government to deliver an All-inclusive playspace in Eden. 

Provision of an all-inclusive regional play space is valuable not only to the local community but also is an important asset to accommodate the needs of many tourists who visit Eden for their holidays, as well as other special events such as the Whale Festival.  Currently, there is no regional all-inclusive playground in Eden.

Following endorsement of the Barclay Street Sportsground Masterplan (August 2020), Council has set to task on consulting with the community to inform the design of this all-inclusive playspace.

A working group {Community Advisory Group (CAG)} was established which included the following stakeholder groups:

·    Access Inclusion Advisory Committee

·    Disability Sector

·    Barclay Street Sportsground

·    Youth/Family sector

·    Aboriginal member

 

The CAG has had the chance to comment on several iterations of the concept design that have preceded this final concept design.  Their input and enthusiasm for this playspace project has been very encouraging. 

Options

1.      Council endorse the attached final concept design enabling play equipment items to be procured and the project to progress to detailed design procurement and construction

2.      Council does not endorse the final concept design; noting that this will impact on the project program and project delivery.

Community and Stakeholder Engagement

Engagement undertaken

A community feedback session was undertaken at the site (Barclay Street Sportsground) on Saturday 19 September 2020 to allow members of the community to have their say about what sort of playspace they would like to see developed at Barclay Street and to express their opinions on the draft concept design.

This session was well received by the community where over 40 residents visited the park between the hours of 10am to 12 pm to talk with Council staff as well as the landscape architects.  Children and adults were given five stickers each to place on the image boards provided.  The result of this exercise is provided in the Attachments to this report.

As various concept designs have been developed, these were forwarded to the CAG as the community’s voice for what they’d like to see in the playspace.  Numerous responses were received  from the CAG which, in turn, has shaped the final concept design. The time and thought that each member of the CAG has provided throughout this phase of consultation has been outstanding. 

Endorsement of this Final Concept Design has been provided from the Community Advisory Group (CAG). This endorsement is attached to this report.

Engagement planned

There will be no further community engagement with respect to the design of the Eden all-inclusive playspace upgrade.  Council endorsement of this concept design will pave the way for the landscape architects to commence detailed design of the playspace based on this final concept, and for procurement of equipment and for the project to progress.

The Community Advisory Group will be kept updated on progress of the detailed design, procurement of play equipment and awarding of a contract to construct this playspace.

Broader community notifications and updates will be issued as the project approaches construction.

 

 

 

 

 

 

 

Financial and Resource Considerations

 

Item

$ Excl GST

Expenditure Budget

 

Detailed Design

$35,000

PM and Contingency Fees

$25,000

Play Equipment Supply

$120,000

Construction of the playspace

$220,000

Total Expenditure

$400,000

 

 

Source of Funds

 

Department of Infrastructure, Transport, Regional Development and Communications.

(Community Development Grants Programme)

$400,000

Total income available

$400,000

 

 

Total Project Capital Cost

Total Available Construction Funding

Project Funding Shortfall

$0

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts

$ Excl GST

Capital Investment - New (refer asset management / replacement discussion below)

$400,000 

Annual Depreciation costs (20 years)

 $20,000

Annual Operations and Maintenance (regional playspace)

$3,600

User charges (annual income)

 Not applicable

Legal /Policy

The area within Barclay Street Sportsground that will ultimately occupy the all-inclusive playspace is a Council managed Crown site (Lot 29, DP 705205) as well as a Council road easement.

The area is zoned RE1 Public Recreation under Council’s Local Environment Plan 2013 (CLEP 2013).

The process for addressing requirements under the Crown Lands Management Act 2016 have been finalised with Council and there are no constraints for the development of the all-inclusive playspace on this parcel of land (Lot 29, DP 705205).

Planning approvals regarding development of recreation facilities are often addressed under Division 12, Parks and other Public Reserves of State Environmental Planning Policy (Infrastructure) (ISEPP 2007). The construction of the all-inclusive playspace is regarded as exempt development under the ISEPP 2007.  There is no proposed change to the use and purpose of the site.  It is envisaged that these will not cause a risk to the delivery of the project.

It is intended to seek formal approval for the closure of the road easement that dissects the Barclay Street Sportsground precinct.  This is the area highlighted in orange in Fig. 1 below. This process is currently underway with Council’s property section. 

 

Fig. 1: Property (Lot and DP) details at Barclay Street Sportsground, Eden

 

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.

1.2.4: Construct recreation facilities, boating infrastructure, public toilets and sporting grounds and facilities.

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

 

 

 

 

 

 

2020/21 Operational Plan

The project to deliver the funded playspace is included in the adopted 2020/21 operational plan;  Project 1.2.4.6 Progress detailed planning and construction of the Eden Inclusive Playspace Project.

The project is included on the ‘Playground Projects’ map within the 2020/21 Operational Plan.

Asset Management

Council has an adopted Recreation Asset Management Plan 2017. This plan puts a focus on renewing existing assets and/or linking capital upgrades and new assets to adopted Strategic Plans. This reflects the ongoing asset management challenges Council has in managing a high asset to low population ratio across a large area. The development of this playspace is included in the Council approved Masterplan for the Barclay Street Sportsground Precinct.  It relates directly to other elements and facilities within that plan. As the masterplan comes together it will be a very good location and align well with the Everyone Can Play Guidelines.

Asset Management Approach – Asset Replacement: Apex Park Play Equipment Eden.

The Barclay Street Eden all-inclusive playspace will be a new asset.  However, in taking an asset management approach, it is intended the new playspace replace the play equipment currently situated at Apex Park, Eden (corner of Mitchell St and Aslings Beach Road, Eden) and that it will be decommissioned when the new all-inclusive playspace is complete. Apex Park is a triangular site surrounded by roads. It is difficult to access due to traffic movements and there is no formalised parking. There is limited other amenities.  The site is not suited for a children’s playground. The Apex Park site is approximately 600m from the location of the new playspace. Is also 400m from the Eden Memorial Park play equipment.

It is also noted that the Memorial Park Play equipment located on Calle-Calle Street is also relatively close, approximately 1km from the Barclay Street site. It is intended that when renewed this asset is simplified to be a small local playground with simple equipment and a small soft-fall footprint.

Environment and Climate Change

There is no risk to the environment or ecological matters as the site is a parkland with extant native vegetation.  A small number of trees have been earmarked for removal by a qualified arborist due to their poor health and risk to occupants of the parkland area or to accommodate new play equipment and related parkland infrastructure. The impacts of the  small number of trees to be removed will be offset by the extensive planting that will ensue following completion of the playspace.

Where practicable, Council will utilise trees and rocks and timber logs from their own stockpile/resources as ‘nature play’ based elements in the delivery of this playspace.

Economic

The development of an all-inclusive playspace in Eden will benefit local businesses as well as the welfare of the local community.

The project links directly to the ‘accessible and inclusive tourism markets’ and will be a welcome addition to Eden’s recreational opportunities.

Risk

The key project risks for Council relates to delivering the project within the project time frame and within budget. 

The funding deed related to this project (in draft) entails a completion date of January, 2022. Subject to the final concept design being approved, the risk of not being able to deliver this project by January, 2022 is considered to be very low.

The appointed landscape architects have developed a cost estimate for this Final Concept Design using costs obtained from playground suppliers to supply play elements for the Lot Stafford All-inclusive playspace, Tathra as well as construction costs for this same project. However, the actual project cost will not be known until the Request for Quote process for construction has run its course.

Consequently, to assist with delivering this project on budget it is recommended that certain project elements, (e.g. slide on tower net structure, park furniture, landscape elements) be added or removed to amend the project scope dependent on final costings if required. If scope changes are required to meet budget key project elements reflecting the highest ranking items from community consultation and those needed to meet the intentions and objectives of the Everyone Can Play Guidelines will be retained.

Social / Cultural

The development of an all-inclusive playspace in Eden will provide significant benefits to the local community.  This development, coupled with the related projects (Skatepark, Upgraded Pavilion) listed on the Council approved Masterplan, will transform the Barclay Street precinct into an area that many locals and tourists will want to visit.

Attachments

1.         Email feedback from CAG representatives

2.         Eden all-inclusive playspace - Concept Design

3.         Eden all-inclusive playspace - Concept Design Section details

4.         Eden all-inclusive playspace - design report

5.         Email from Access and Inclusion Advisory Committee Representative

 


Council

16 December 2020

Item 9.2 - Attachment 1

Email feedback from CAG representatives

 

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Council

16 December 2020

Item 9.2 - Attachment 2

Eden all-inclusive playspace - Concept Design

 


Council

16 December 2020

Item 9.2 - Attachment 3

Eden all-inclusive playspace - Concept Design Section details

 


Council

16 December 2020

Item 9.2 - Attachment 4

Eden all-inclusive playspace - design report

 

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Council

16 December 2020

Item 9.2 - Attachment 5

Email from Access and Inclusion Advisory Committee Representative

 

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Council 16 December 2020

Item 9.3

 

9.3Swimming Pool Fees & Charges- Additional Fee Proposal     

The purpose of this report is to propose a new fee for program participants to cover general pool entry outside of their enrolled program time.

Director Assets and Operations  

Officer’s Recommendation

It is recommended that Council:

1.   Introduce proposed subsidised casual entry fee of $2.00 for program participants outside of their allocated program time at Council pools to apply only to those who want to swim outside their program without a membership.

2.   That Council exhibit the proposed fee changes in accordance with statutory requirements and if no submissions are made the fee be adopted following exhibition.

 

Executive Summary

Aquatic program fees cover the program enrolled in and does not include general entry outside of program times, with recent COVID19 restrictions changes have had to be made to how Sapphire Aquatic Centre (and the outdoor pools) operate. This included the introduction of maximum capacities and other restrictions to comply with the NSW Government directions and legislation.

The changes identified an opportunity to introduce a new fee to cover program participants outside of their allocated program time, without requiring them to pay the adopted casual fee when already paying for a program in the same visit. This fee will achieve consistency with the existing fee structure and will make facilities more affordable for those already enrolled in aquatic programs.

Background

Aquatic Program fees are paid to cover the program enrolled in and does not include general entry outside program times. If customers wish to use the pool facilities outside program times, they are required to have a current membership or pay the relevant casual entry fee ($4.60 or $5.60)

Prior to 2015, there was no structure around aquatic programs and general entry. With a growing program, this was causing overcrowding of the multi-purpose pool during program times and increased risk to participants. It was also increasingly difficult for staff to maintain effective supervision, as well as customers being able to take advantage of their visit and staying for extensive periods of time without paying. Due to reduced available space, this also created an issue of equity regarding access for customers not involved in programs to access the swimming pools.

In January 2015, a policy of not allowing swimming outside of lessons at all was implemented. After much negative feedback and complaint, a concession was made and restriction of 10 minutes either side of lessons for program participants was implemented. Participants were provided a green wristband with their relevant time plus 10 minutes either side. Outside of the above, participants were required to either have a membership or pay casual entry. Lifeguard staff are then required to monitor this as well as their general supervision duties, ensuring only those allowed to be in the pool are.

After the COVID19 shutdown and once the pools were able to reopen and re-commence programs, there was a requirement to implement a booking system and meet restrictions around the maximum capacities within facility areas. As a result, it was decided to remove the above 10 minutes as it was not possible to provide fair access to all participants based on enrolled day/time. There was also a requirement to be able to provide public access for non-program participants to book in and use the pool.

As result, participants no longer receive a green wristband. Staff feedback has been positive as there is no longer a need to manage the green bands at the front desk or on pool deck.

Options

1. Introduce proposed subsidised casual entry fee of $2.00 for program participants outside of their allocated program time. This only applies to those who want to swim outside their program without a membership (user pays). The amount is consistent with the difference between existing casual entry fees for gym/fitness class and full access (this allows program attendance and pool use in same visit)

2. Increase lesson fees to include casual pool entry as standard. This option disadvantages customers who have a current membership or do not want to swim outside their enrolled program time. This will also make program less affordable and could decrease participation.

3. Set up different program fee structures for members and non-members. This will increase the number of swimming pool fees and charges, whilst also establishing a fee structure that treats customers differently based in membership status.

4. Maintain current process allowing 10 minutes either side of lesson. Currently cannot be provided due to COVID19 Restrictions and creates additional work for staff to manage and implement, particularly during peak times. As program fees are established to cover the cost of the program, allowing use

Community and Stakeholder Engagement

Currently, due to COVID19 Restrictions, it is not possible to accommodate swimming outside of lessons unless customers have paid and booked in based on maximum area capacity. The restrictions have also impacted the space available to manage the balance between the delivery of aquatic programs whilst maintaining public access for the community. Emphasis regarding this requires staff to consider and ensure equity for all users and program participants.

Engagement undertaken

With the recommencement of aquatic programs after the COVID19 shutdown, this change was communicated as part of wider COVID19 restrictions and to all program participants, parents and guardians as they re-enrolled. This is also regularly re-iterated at reception when participants attend facilities and enforced by lifeguards at the pool.

Staff and customer feedback have identified where customers are participating in programs, the time spent using the pool for general public use is reduced when compared to a non-program customer. As the participant has already paid a fee for their program participation, there is an assumption that pool entry is included, which is not the case.  Considering the above, implementing a reduced fee for general entry where customers are enrolled in a program would be more equitable and consistent with the existing fee structure for other centre programs.

Staff have also indicated that since the above change was implemented, it has been easier to manage at the front reception, as this reduces crowding and is easier to supervise and manage on pool deck as a lifeguard. As always, there is are some customers who disregard the directions and try to swim for free.

Engagement planned

Upon adoption of the proposed fee the following engagement will occur.

·    A notice will be displayed at Sapphire Aquatic Centre notifying customers of the proposed fee.

·    Customers will be advised at re-enrolment and the front reception when attending facility.

·    Aquatic program enrolment forms, as well terms and conditions will be updated to acknowledge.

·    The update will be included in the Term 1 Aquatic Program Newsletter, Sapphire Aquatic Centre’s website and social media.

In addition to the above, the statutory requirements for advertising new fees and charges will be complied with.

Financial and Resource Considerations

No ongoing capital or expense related resource considerations. Currently approximately 10% of participants pay the additional casual fee to use the pool. Based on existing information, it is believed that the addition of a more affordable fee will see an increase in take up which will generate additional revenue to offset any income reduction due to the reduced fee amount.

Legal /Policy

N/A

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

N/A

Environment and Climate Change

N/A

Economic

N/A

Risk

The initial change in 2015 was introduced to reduce overcrowding and improve safety without an equitable method to effectively manage the situation identified. By ensuring all participants must have paid to enter the pool outside their lesson or have a current membership, it is possible to minimise the risk of overcrowding and subsequent incidents occurring. Similarly, due to our current booking system and COVID 19 restrictions, physical distancing requirements must be implemented.

Social / Cultural

This fee ensures all participants are treated equally irrespective of their membership status and the existing fee structure is applied consistently. A user pays principle is applied where the fee is only applicable to those who do not have a current membership and wish to use the pool outside their enrolled program time.

Attachments

Nil

  

 


Council

16 December 2020

 

 

Staff Reports – Infrastructure Waste And Water

 

16 December 2020

  

11.1            Cemetery Strategy 2020-2030............................................................................ 92

11.2            Bega Valley Local Traffic Committee................................................................. 177

11.3            RFT 10031271 - Brogo Water Treatment Plant -Tender Evaluation Report..... 181

11.4            RFT 2021-43 Bega Sporting Complex Design.................................................... 186

11.5            RFT 2021-48 Imlay Street and Albert Terrace, Eden Upgrade – Tender Evaluation Report........................................................................................................................... 192

11.6            Bega District Woodcraft Association................................................................. 199

11.7            Dividing Fences Amendment Bill 2020.............................................................. 205

11.8            Eden Fisherman's Recreation Club occupation of Lot 4 DP 1126141............... 208

11.9            Land matters associated with Tathra Lawrence Park and Preschool............... 267

11.10          Proposed divestment of Lots 9 - 12 Sec 1 & 2 DP 1085 at Park Street, Bega... 299

11.11          Proposed divestment of Lot 5 DP 843822 and Lot 16 DP 112193 Mecklenberg Street, Bega........................................................................................................................... 311

11.12          Apex Park Cobargo Toilet Costs........................................................................ 320


Council 16 December 2020

Item 11.1

 

11.1. Cemetery Strategy 2020-2030     

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

Director Assets and Operations  

Officer’s Recommendation

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

2.    That Council endorse option four (4) of the financial modelling options provided within the draft Cemetery Strategy to ensure the long-term sustainability of the Shire’s cemeteries.

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

 

Executive Summary

A draft Cemetery Strategy (Strategy) has been prepared by staff, with input from Kategic Strategic Solutions (Kategic), relevant industry stakeholders and community stakeholders.  The draft Strategy seeks to address key challenges and opportunities when determining operational planning and budgets for future years and provides a vision and framework for the delivery of Bega Valley Shire Council’s (Council’s) cemetery network over the next 10 years. 

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

Background

Prior to 2009 Council’s cemeteries were managed by community committees, convened under section 355 of the Local Government Act 1993 (LG Act).  At Council’s Ordinary Meeting of 18 August 2009, a comprehensive review of cemetery management and burial administration activities was tabled.  The centre piece of this review was an independent peer assessment conducted by Pierre du Parte, Bereavement Services Manager for Shoalhaven City Council which considered all aspects of Councils cemetery management, burial administration practices and engaged cemetery committees, funeral directors and Council’s contract grave digger.  The report is titled ‘Peer review report of Bega Valley Shire cemeteries operations’.

 

Council’s cemetery management has developed significantly since the time of that initial review and several of the recommendations do not apply today.  In 2018 Kategic were engaged to assist Council in the development of a Strategy for Council’s cemeteries.  Kategic conducted a thorough review of cemetery operations and consultation to gauge the communities’ feedback and views on Council’s cemeteries.

 

Options

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

Community and Stakeholder Engagement

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

Engagement undertaken

Community engagement for the draft Strategy was carried out via listening posts and surveys from February to March 2019.  Council conducted a multi-faceted communication plan in conjunction with Kategic.

Council contacted community representatives to seek their feedback on our cemetery services.  We asked for feedback on their experience with Council’s cemetery network, our proposed guiding principles, emerging practices in cemeteries and areas Council should consider in preparing this Strategy.

Engagement planned

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

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

Financial and Resource Considerations

Various financial modelling options are presented in the Strategy which project operating income from internments against total expenditure which has been based on previous years and the impact upon the cemetery reserve moving forward.  It is recommended that Council adopt option four (4) which proposes a combination of general fund subsidy for the wages and a modest overall increase in fees.

This spreads the cost of the cemetery operations across the Shire and a user pays model.  It seeks a 100% subsidy of wages of $88k per annum from the general fund and proposes an increase of the cemetery maintenance fee from $420 to $550 or $130 overall increase of the cost of burials by 4%.

Costs associated with the preparation of the Strategy have been funded from the Cemetery Reserve.

Legal /Policy

There is no legislative requirement for the development of a Strategy, however the need to develop a forward-thinking approach to manage the financial obligations, capacity and ongoing maintenance of cemeteries is a sensible approach and one that is supported by Cemeteries and Crematoria NSW (CCNSW), the State Government’s cemeteries body.

In accordance with the CCNSW – Voluntary Code of Practice for Cemetery Maintenance it is best practice to implement a strategic business plan to identify potential trends and costs of cemetery services, including the costs of these into the future and a financial model that provides for the apportionment of costs for current services as well as for perpetual costs over the long term – a long term financial plan.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

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

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

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

Environment and Climate Change

There is no environment and climate change matters associated with the proposed exhibition of the draft Strategy.

Economic

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

Risk

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

Implementation of this Strategy, once adopted, will address the key challenges and opportunities when determining operational planning and budgets for future years.

Social / Cultural

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

Attachments

1.         Final Draft BVSC Cemetery Strategy 2020 - 2030

2.         ATTACHMENT A Cemetery Consultation - Kategic Strategic Solutions

 


Council

16 December 2020

Item 11.1 - Attachment 1

Final Draft BVSC Cemetery Strategy 2020 - 2030

 

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Council

16 December 2020

Item 11.1 - Attachment 2

ATTACHMENT A Cemetery Consultation - Kategic Strategic Solutions

 

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Council 16 December 2020

Item 11.2

 

11.2. Bega Valley Local Traffic Committee     

This report recommends Council adopt the recommendations of the Bega Valley Local Traffic Committee.

Director Assets and Operations  

Officer’s Recommendation

That Council adopt the recommendations of the Bega Valley Local Traffic Committee email dated 7 October 2020 to be tabled at the 16 December 2020 Council meeting.

Tathra Wharf to Waves Weekend – Bike Ride 16 and 17 January 2021

The Local Traffic Committee have been advised via email on 16 October, that the event has now been cancelled due to COVID19.

EAT Merimbula 7 March 2021

We have received an application from Eat Merimbula. EAT Merimbula is a food festival celebrating local produce and local chef talent within the Sapphire Coast.

Recommendation

1.    That, subject to conditions, Fishpen Road, Merimbula between the intersections of Marine Parade and Calendo Court be temporarily closed between 7.00am and 5.00pm on Sunday, 7 March 2021 for Eat Merimbula Food Festival.

2.    That, as per the Local Traffic Committee meeting recommendations of 5 July 2017 which were adopted by Council on 16 August 2017 regarding events in the Fishpen area, the Eat Merimbula event was considered for one-lane closure only, but deemed to be a two-lane closure for safety purposes.

3.    That the event organisers notify affected property owners of changes to road conditions at least one month prior to the event taking place.

4.    That the proposed traffic arrangements involving the temporary closure of Fishpen Road, Merimbula for the Eat Merimbula Festival on Sunday, 7 March 2021 be deemed a Class 2 special event and it be conducted under an approved and current Traffic Control Plan, in accordance with the NSW Transport for NSW  (TfNSW)  Traffic Control Manual.

5.    That persons involved in the preparation and implementation of the Traffic Control Plan must hold the appropriate NSW TfNSW accreditation.

6.    That organisers have approved public liability insurance of at least $20 million indemnifying Council, Police and Transport for NSW (TfNSW) by name for the event.

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

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

9.    That the event achieves all conditions of Council’s issued Approval for Use of Public Land.

10.  That the event operates strictly under the NSW Health Department COVID19 conditions and have a current COVID19 Safety Plan in place as per the following link https://www.nsw.gov.au/covid-19/covid-safe/major-events#complete-a-covid-19-safety-plan . A copy is to be sent to council prior to the event.

(See Attachment 1. EAT Application 2021 in link at end of report)

Far South Coast National Show (Bega) February 2021

An application has been received from the Bega AP&H Society Inc. for the annual Far South Coast (Bega) Show on 19, 20 and 21 February 2021.

The Bega AP & H Society Inc request the following:

·    Use of Bega Park as a car parking area for the duration of the Show

·    Use of the East street land for camping, parking of caravans and horse floats etc

·    General cleanup of the area adjacent to the Showground prior to the show

Recommendation:

1.    That, subject to conditions, the section of roadway adjoining the Bega Showground between East Street and Tathra Road, Bega be temporarily closed from 9am to 5pm on 19, 20 and 21 February 2021 for the Far South Coast National Show.

2.    That, subject to conditions, Park Lane and East Street, Bega, between the intersections of Parker Street and Belmore Street be temporarily changed to one-way traffic flow eastbound / southbound from 9am to 5pm on 19, 20 and 21 February 2021 for the Far South Coast National Show.

3.    That the proposed traffic arrangements for the Far South Coast National Show be deemed a Class 2 special event and it be conducted under an approved Traffic Control Plan, in accordance with Transport for NSW (TfNSW) Traffic Control Manual.

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

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

6.    That organisers have approved public liability insurance of at least $20 million indemnifying Council, Police and Transport for NSW (TfNSW) by name for the event.

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

8.    That the event achieves all conditions of Council’s Use of Public Land approval.

9.   That the event operates strictly under the NSW Health Department COVID19 conditions and have a current COVID19 Safety Plan in place as per the following link https://www.nsw.gov.au/covid-19/covid-safe/major-events#complete-a-covid-19-safety-plan . A copy is to be sent to council prior to the event

(See Attachment 2. Far South Coast Show Application 2021 in link at end of report)

Australia Day Celebrations 26 January 2021

An application has been received from the Bega Valley Shire Council events co-ordinator for the annual Australia Day Celebrations and awards ceremony to be held on Tuesday 26 January 2021.

Recommendation

1.    That, subject to conditions, Zingel Place, Bega between the Sapphire Marketplace roundabout and entrance to the Littleton Gardens car park be temporarily closed between 7:00am and 10.30am on Tuesday 26 January 2021 for the Bega Australia Day celebrations.

2.    That the proposed traffic arrangements involving the temporary closure of Zingel Place, Bega for the Bega Australia Day celebrations on Tuesday, 26 January 2021, be deemed a Class 2 special event and it be conducted under an approved Traffic Control Plan, in accordance with Transport for NSW  (TfNSW) Traffic Control Manual.

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

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

5.    That organisers have approved public liability insurance of at least $20 million for the event.

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

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

8.    That the event operates strictly under the NSW Health Department COVID19 conditions   and have a current COVID19 Safety Plan in place as per the following link https://www.nsw.gov.au/covid-19/covid-safe/major-events#complete-a-covid-19-safety-plan . A copy is to be sent to council prior to the event.

(See Attachment 3. Australia Day 2021 in link at end of report)

Weight Restrictions

Advice has been received from Council’s Structures Engineer requesting weight restrictions on three additional bridges within the Shire, these being Scrubby Creek Bridge, Yowaka River Bridge and Wolumla Creek Tributary Bridge. He has suggested the following signage be approved and installed for each structure - R6-3A BRIDGE LOAD LIMIT XXT GROSS signs are 600x900mm, should be adequate for low speeds at these sites. Suggest 2 on each approach, one either side of road at bridge, mostly local traffic only. I don’t think advance signs are necessary.

·    Scubby Ck, 22.5t

·    Yowaka River, 22.5t

·    Old Soldiers (Wolumla Creek), 15t

Recommendations:

1.      Council approve the installation of a 22.5 tonne weight restriction on the Scrubby Creek Bridge, located on Scrubby Range Road, Buckajo, until such time as bridge strengthening works are completed.

2.      Council approve the installation of a 22.5 tonne weight restriction on the Yowaka River Bridge, located on Nethercote Road, Nethercote, until such time as bridge strengthening works are completed.

3.      Council approve the installation of a 15-tonne weight restriction on the Wolumla Creek Tributary Bridge, located on Old Soldiers Road, Wolumla, until such time as bridge strengthening works are completed.

Discussion and Action:

All agreed that the Advance Warnings Signs should be in place. It was discussed that the BVSC LTC Representative do a site visit and take photos, regarding these signs. These photos and findings are to be forwarded to the TfNSW Representative for assessment.

 

Executive Summary

The Local Traffic Committee is primarily a technical review committee and is not a Committee of Council. Local Traffic Committees operate under delegation from NSW Roads and Maritime Services (RMS) who are responsible for traffic control on all New South Wales roads. Their role is to advise Council on traffic control matters that relate to prescribed traffic control devices or traffic control facilities for which Council has delegated authority.

It is a requirement for Council to formally adopt the recommendations from this Committee prior to action being taken.

Link to attachments 1,2 and 3 https://begavalley.nsw.gov.au/page.asp?f=RES-JIQ-62-55-37

Attachments

Nil

 


Council 16 December 2020

Item 11.3

 

11.3. RFT 10031271 - Brogo Water Treatment Plant -Tender Evaluation Report     

This report details the evaluation outcome of Request for Tender for the proposed Brogo Water Treatment Plant.

Director Assets and Operations  

Officer’s Recommendation

1.    That Council accept the recommendations in the attached confidential memo.

2.    That Council accept the tender for RFT 10031271 Brogo Water Treatment Plant from [to be inserted] for $[to be inserted] as outlined in Confidential Attachment 1.

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 project is the second water treatment plant (of an anticipated four) to be built in the Shire. On completion the WTP will provide treated water to the Bermagui supply system which includes the towns of Quaama and Cobargo. It is funded through the NSW Government’s Safe and Secure Water funding program.

The project will be delivered under a Design and Construct (D&C) model. The first phase, detailed design will commence in Jan 2021 and take six months to complete. Following Council’s acceptance of the Contractors design, construction will commence in June 2021. The construction and subsequent testing and commissioning phases are scheduled to take 18-21 months to complete. The plant is to be fully operational by summer 2022.

This report presents the outcome of RFT 10031271 for the proposed D&C Contract to build the Brogo WTP and associated works. The RFT process has been managed by Public Works Advisory and was advertised via NSW Governments eTendering website.

Background

Council was successful in securing $10.07mill in co-funding for the Brogo WTP through the NSW Government’s Safe and Secure Water Program. This program is aimed at;

·    prioritising projects that address the highest risks and issues for regional NSW water; and

·    ensuring a minimum level of service in smaller towns where the cost of critical infrastructure outweighs the economic benefits provided.

Following the funding announcement in early 2019 the project team has undertaken site investigations, developed the reference design based on the adoption of a Diffused Air Floatation & Filtration (DAFF) process type and obtained relevant planning approvals.

Recently, work has included the refinement of the reference design to incorporate a number of changes (see items outlined below), development of the contract and tender documentation and running a competitive open tender process.

The final scope of work included in the D&C Contractors contract has been heavily influenced by several issues that have developed over the course of the past 12 months. A summary of includes;

·    Identification that the existing concrete balance tank situated on the site, BT1, has prematurely reached the end of its’ service life. The decision has been made to include the renewal of the balance tank into the D&C Contract;

·    Council’s adoption of a clean energy policy in 2019 has shifted the plants operational philosophy to ensure that energy required to run the plant has been generated on site by renewable sources where practical;

·    The black summer fires burnt 90% of the water catchment. The denuded landscape left in the wake of the fires has dramatically changed the water quality in the Brogo River. In response to more frequent ‘dirty water events’, Council has built a temporary WTP. The D&C Contractor is required to ensure Council can continue to operate the temporary WTP until the permanent WTP has been commissioned. The D&C Contractor will then be responsible for decommissioning the temporary plant as it will no longer be required; and

·    The black summer fires also highlighted vulnerabilities in the water supply system. In particular, the reliance of the pump station (at the river intake) and the proposed WTP site being on a single electrical supply. Should the electrical connection be severed in the event of a bushfire or other unplanned event there is only 24-48 hours of storage in the system – even less if there is an active bushfire being fought using water drawn from the network. In response to this risk the decision has been made to install standby diesel generators at both the pump station and the site of the Water Treatment Plant so that both assets can operate when disconnected from the grid. The pump station will also be capable of a significantly higher flowrate.

Public Works Advisory have been engaged to manage the procurement phase using a GC 21 Contract - Design and Construct delivery model. Council were successful in receiving four bids through a competitive tender process. The attached confidential memo outlines the outcome of this process in detail.

Upon award of the D&C Contract the project is scheduled to take 18-24 months to complete. At this stage the plant will be operational for summer 2022.

Options

Two process options were considered during the design process. This included;

·    Membrane (similar to Bemboka); and

·    Diffused Air Floatation & Filtration (DAFF).

Based on the data collected over the course of the past two years it has been determined that the chemistry of the water extracted from the Brogo River was best suited to DAFF. The reference design has been developed based on this preferred option.

Council has the options to accept any of the tenders or reject them all.

Community and Stakeholder Engagement

Engagement undertaken

The site of the proposed WTP is on Upper Brogo Rd, approximately 10km west of Quaama in a sparsely populated area at the interface of farmland and wilderness areas. There are several local landholders/residents in the general vicinity of the project. The project team have engaged with these community members through several communication channels including;

·    Face-to-face meeting on site;

·    Fact sheet letter drop;

·    Updates to Council major project website; and

·    Regular phone calls over the course of the past 12 months.

These residents have been notified of the upcoming works and are aware of the likely impacts of the proposal both during construction and in its future operating environment. The level of engagement with the local landholders/residents is proportioned to the likely impacts of the project.

Engagement planned

Engagement planned for the next phase of the project includes a commitment to the following;

·    Broader community will be kept informed via periodic media releases, bulletins and updates to the major project page on Council’s website.

·    Residents in the Upper Brogo area will be kept informed in more detail through the same established channels as outlined above.

Financial and Resource Considerations

 

Item

$ Excl GST

Expenditure Detail

 

Brogo WTP

~$9,320,000

Brogo Tank 1 replacement

~$750,000

Permanent backup diesel generator & building (WPS)

~$400,000

Solar array (WPS)

~$250,000

Project management, design review and QA (internal cost)

~$350,000

Project management (external cost)

~ $1,000,000

 

 

Total Expenditure

<price to be inserted>

 

 

Source of Funds

 

NSW State Safe & Secure

$10,070,000

W&SS Fund

~$2,000,000

 

 

Total income available

$12,070,000

 

 

Total Project Capital Cost

$12,070,000

Total Available Construction Funding

$12,070,000

Project Funding Shortfall

$0

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts

$ Excl GST

Capital Investment

$12,070,000

Annual maintenance and operational costs

 $500,000 (5% of capital cost)

Depreciation costs

 $201,000

Council is currently reviewing its Integrated Water Cycle Management Strategy and 30 year financial models which will factor in the impacts of the inclusion of the new plant.

Legal /Policy

The tender process has been undertaken in accordance with the Local Government Act 1993.

The development of the reference design has been conducted in accordance with the prescribed Section 60 process. The outcome of this process ensures Council can obtain ministerial approval to supply water under Section 60 of the Local Government Act 1993

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The proposed Brogo WTP aligns with the Community Strategic Plan and goals outline therein, in particular;

·    “Goal 5: Our air and water is pristine and our natural environment and rural landscapes are protected’;

·    “Goal 7: Our Shire continues to be a vibrant, enjoyable, safe and affordable place to live.” And;

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

Environment and Climate Change

The proposal has considered the impacts on future generations by;

·    ensuring the capacity of the plant is sufficient to cope with projected demands at the 30-year horizon; and

·    building in approximately 20% additional space to facilitate adaptation of the plant to meet future requirements;

A Review of Environmental Factors has been undertaken for this project in accordance with the Environmental Planning and Assessment Act 1979. The REF has been reviewed and determined by Council’s Planning Department as determining authority. A copy if the determined REF will be placed on the major projects page of Council’s website.

As outlined in a previous section of the report, the final reference design has been developed to align with Council’s Clean Energy Plan and Climate Resilience Strategy

Economic

The proposal will have an immediate economic benefit during construction. The preferred tenderer has committed to using several local suppliers and subcontractors. This will promote jobs in the area as well as exposing local people to specialist skills, technologies and experience in the water treatment industry.

On completion the plant will produce reliable clean drinking water. This may support future enterprises, such as manufacturing, reliant on a high level of quality of water.

Risk

The main objective of the proposed WTP is to increase the reliability of quality of the water in the Brogo – Bermagui supply network thus reducing health risk to customers in the network.

Social / Cultural

The proposal will have significant positive social impacts through improved water quality and a lower burden of sickness on the community.

Attachments

1.            Confidential attachment to Council Report RFT 10031271 Brogo Water Treatment Plant Evaluation Report (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 16 December 2020

Item 11.4

 

11.4. RFT 2021-43 Bega Sporting Complex Design     

This report details the outcome of evaluation of Tender RFT 2021-43 for the Bega Sporting Complex Design and recommends award to the preferred tenderer.

Director Assets and Operations  

Officer’s Recommendation

1.    That Council accept the recommendations as outlined in the confidential attachment.

2.    That Council accept the tender from <insert> and enter a contract in relation to the works described in Tender RFT 2021-43, in the amount of <insert> (including GST), subject to variations, provisional sums and prime cost items.

3.    That authority is delegated to the General Manager, or in the absence of the General Manager the Director Assets and Operations, to execute all necessary documentation.

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

 

 

Executive Summary

This report details the outcome of evaluation of Tender RFT 2021-43 for the Bega Sporting Complex Design. The scope of this Tender comprises the major professional services design element of the NSW Office of Sport funded Bega Sporting Complex Upgrade.

Background

Following execution of the Funding Agreement by Bega Valley Shire Council and the NSW Office of Sport, a Project Control Group (PCG) was established and initial PCG meetings have taken place. Discussion points during these meetings led to the following recent decisions of Council bearing most relevance to this report:

Report to Council 26 August 2020 – Item 11.6 Bega Sporting Complex Project. This report was prepared to provide an update on the project, clarify steps to date and determine the next steps with the project. Council resolved the following:

1.    That Council note its previous resolutions relating to the Bega Sporting Complex and the 77-79 Auckland Street site.

2.    That Council endorse option two outlined in this report as the basis for further planning and design which is to demolish the existing indoor facility and replace it with a new facility in the same proximity between George Griffin Oval and the Bega Recreation Ground which supports integration of multi-use facilities.

3.    That Council reconfirm its support for the Project Control Group Model and terms of reference to support progress of the project noting there will be opportunity for broader stakeholder input at appropriate times.

The purpose of bringing this report to Council is to detail the outcome of the Tender process recently completed to procure a suitably qualified consultant to progress the design element identified in point 2 of Council’s above resolution.

The Tender process was conducted in accordance with the Local Government Act 1993; Tenders were called on Wednesday 28 October 2020 and closed on Wednesday 18 November 2020, with submissions received from the following companies:

·    AEK Architects Pty LTD T/A Kris Kowalski Architects

·    Allen Jack & Cottier Architects Pty Ltd

·    BKA Architecture Pty Ltd

·    Conybeare Morrison International Pty Ltd

·    Cox Architecture Pty Ltd

·    Facility Design Group Pty Ltd

·    Gil Architects Pty Ltd

·    Michael Davies Architecture Pty Ltd

·    N2SH Pty Ltd

·    SQC Architecture (Richard Small & Phil Quinton Architects Pty Ltd)

·    Stone Three Design

·    Thomson Adsett Pty Ltd

Tenderers were asked to submit the following returnable schedules:

·    Lump sum price breakdown

·    Rates for variations

·    Schedule of key contract staff (incl. sub-consultants)

·    Proposed methodology

·    Recognition of local outcomes

·    Tender program

·    Schedule of quality assurance

·    Schedule of similar services and tenderer’s references

·    Schedule of Tenderer’s current workload

A Tender Evaluation Panel was established, and Tenders were assessed against the following evaluation criteria:

 

Tender Evaluation

Criteria

Weighting

Price

30%

Proposed methodology

20%

Recognition of local outcomes, demonstration of support for local business and community enterprise

5%

Tender program

10%

Quality Assurance qualifications and experience

5%

Experience providing similar services

20%

Demonstrated capacity to undertake services of this nature and scale

10%

 

Options

Following a Tender process options include appointing the preferred Tenderer, declining all Tenders and negotiating with preferred Tenderer/s in terms of price/scope, or declining all Tenders and commencing a new or alternative process. In this instance the recommendation is to accept the preferred Tenderer’s submission and enter a contract in relation to the works described in RFT 2021-43.

Community and Stakeholder Engagement

Engagement undertaken

In 2017 and 2018 consultation and work was undertaken to engage key users and identify future opportunities for the site. Work included the engagement of Cox Architecture to consolidate feedback from an initial online survey and stakeholder workshops into a Master Plan format to be used for broader community engagement and reporting to Council.

This work supported the successful funding application for $8.5M to carry out the Bega Sporting Complex Upgrade.

Engagement planned

With funding secured and Funding Agreement in place, the PCG will be the principle mechanism for further user group and stakeholder consultation. The appointed design consultant from this Tender process will be introduced to the PCG upon contract execution and will present their work to the PCG as it progresses.

Financial and Resource Considerations

The below table summarises the project budget, the figures forming part of the Funding Agreement. The works scoped within this Tender are part of the “Administration Costs: Professional Services – Design Development and Approvals” line item (cells shaded yellow for ease of reference).

 

Item

$ Excl GST

Source of Funds

 

Office of Sport Funding

8,500,000.00

BVSC Project Development / Master Planning

70,000.00

Third Party Funding

0.00

Total income available

8,570,000.00

 

 

Expenditure Detail

 

Project Preliminaries / Site Establishment

142,857.14

Grossed Up Capital Construction

7,000,000.00

Contingencies

784,285.71

Administration Costs: Professional Services.

Design Development and Approvals; Project Management

642,857.15

Total Expenditure

8,570,000.00

Total Project Capital Cost

8,570,000.00

Total Available Construction Funding

8,570,000.00

Legal /Policy

The Tender process was carried out in accordance with the requirements of the Local Government Act 1993.

Legislation and Policy that will apply to the broader project moving forward includes:

·    Environmental Planning and Assessment Act 1979

·    State Environmental Planning Policy (Infrastructure) 2007

·    Bega Valley Local Environment Plan 2013

·    Crown Land Management Act 2016

·    Native Title Act 1993

·    BVSC Generic Plan of Management

·    BVSC Procurement Policy

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Community Strategic Plan

Community Strategic Plan Goals related to this Tender process and the Bega Sporting Complex Upgrade project include:

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

1.2.1: Plan and manage boating infrastructure, sporting grounds and facilities, parks and gardens, natural areas and public amenities.

1.2.4: Construct recreation facilities, boating infrastructure, public toilets and sporting grounds and facilities.

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

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

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

6.12.19: Deliver civil construction and infrastructure works for transport and recreation assets.

2020/21 Operational Plan

Item 1.2.4.1 of the 2020/21 OP is to progress with detailed planning and approvals for the sports infrastructure projects at the Bega and Pambula Sporting Complexes.

Environment and Climate Change

A significant environmental consideration for the Bega Sporting Complex Upgrade is location with respect to flood prone land. This will be considered through the design development process by Council, the appointed design consultant and the PCG. Careful consideration of facility positions and construction materials is anticipated to mitigate potential impact.

There will be further opportunities through the design process to look at energy efficient options in the ongoing operations of the building. 

Options will be considered to best recycle or reuse elements of the existing building when planning demolition.

Economic

As witnessed through National Rugby League (NRL) trial matches and associated entertainment events over the last two years, the Bega Sporting Complex has the ability to host high level competition matches and large-scale concerts. Upgrading the existing facilities at the site will support future events of a similar nature and could potentially draw interest from other sporting and entertainment bodies.

The ability to host regional sporting, community and cultural events will stimulate economic benefits for the Bega Valley Shire through increased visitation.

Risk

Overall project risks were identified and included in project briefs submitted to the NSW Office of Sport; they were also included in the project update reported to Council 8 April 2020.

Specific pre-contract risks applicable to the Tender process are addressed through the returnable schedules submitted with Tenders and then via the evaluation process. Key considerations in this regard for RFT 2021-43 included consultant experience, proposed methodology and program. These three considerations were weighted 20%, 20% and 10% respectively, totalling half of the overall evaluation weighting, and highlighting the Tender Evaluation Panel’s interest in ensuring the successful design consultant is suitably qualified and equipped to address these key considerations.

The two most applicable post-contract risks applicable to the Tender process are time and stakeholder management. Time is addressed within the detailed programs submitted by prospective design consultants; broken down into design phases with hold points at requisite sign-off milestones. Stakeholder management is addressed through the PCG delivery model; the appointed design consultant will work closely with, and report in to, the PCG through all design phases.

Social / Cultural

The Bega Sporting Complex Upgrade is set to enhance the facility’s current status as a regional sporting hub, ideally increasing utilisation by sporting, community and cultural groups from within and outside the Bega Valley Shire. Upon completion the facilities will provide opportunities for high level competition fixtures such as the NRL matches already hosted; bringing social benefits to the community, together with the economic benefits also outlined in this report.

Attachments

1.            Confidential attachment to Council Report RFT 2021-43 Bega Sporting Complex Design (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.

 

 

2.            Confidential Memorandum to Councillors - Tender Attachments (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 16 December 2020

Item 11.5

 

11.5. RFT 2021-48 Imlay Street and Albert Terrace, Eden Upgrade – Tender Evaluation Report     

This report details the evaluation outcome of Request for Tender 2021-48 for the Imlay Street and Albert Terrace Upgrade, Eden.

Director Assets and Operations  

Officer’s Recommendation

1.    That Council accept the recommendations in the confidential attachment 1.

2.    That Council accept the tender for RFT 2021/48 Imlay Street and Albert Terrace Upgrade 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 2021/48 for Stage 2 of the Eden Port to Princes Highway Link project – Imlay Street and Albert Terrace Upgrade.

The works proposed in this stage will upgrade the road, pathways and public spaces from approximately 20m North of Heritage House to the bottom of the hill on Albert Terrace. Key features of this stage include;

·    Improvements to the intersection of Imlay Street and Albert Terrace;

·    Construction of shared path on eastern side of Albert Terrace;

·    Creation of revitalised public space south east side of Albert Terrace and Museum Street intersection; and

·    Renewal/upgrade of existing infrastructure including pavement and kerb.

The preferred tenderer proposed to commence work after the Australia Day long weekend in 2021 and will complete the work by the end of May 2021, subject to weather and/or other unforeseen impacts.

Background

The Princes Highway to Eden Port High Productivity Freight Link project has been broken into five distinct stages. This has been done to ensure that the project to be delivered within funding limits, timelines and with available resources. An overview of the five stages includes;

·    Stage 1 CBD Bypass (Complete); This stage included the strengthening of existing pavement on Mitchell Street, Calle Calle Street and Chandos Street. Works on this stage were completed this year.

·    Stage 2 Imlay Street & Albert Terrace Upgrade (Procurement); The works proposed in this stage is the subject of this report. Construction is due to commence early in 2021;

·    Stage 3 Imlay/Chandos Roundabout & Rehabilitation (Design Only); This stage of work is currently in design phase. It is proposed to develop a ‘shovel ready’ package so that procurement phase can commence when this receives funding;

·    Stage 4 Port Tie-in (Unfunded); The commencement of the ‘tie in’ to the Snug Cove precinct has been put on hold due to substantial development earmarked for this area by State Government agencies. Proceeding with stage at the present is likely to place constraints to how this area may be developed in the future; and

·    Stage 5 Mitchell St Roundabout (TfNSW); In order to facilitate the implementation of a heavy vehicle bypass of the CBD the existing roundabout on Mitchell St must be modified to accommodate larger vehicles. At the Mitchell St Roundabout is part of the Princes Highway this piece of infrastructure comes under the jurisdiction of Transport for NSW and the State Government.

Stage 1 and 2 are jointly funded from 100% State and Federal grant programs; NSW Restart and Building Better Region Fund respectively.

The design and approval process have been completed for Stages 1, 2 and 3 with broad community consultation process has been undertaken during this design phase of the project.

Stage 1 CBD Bypass works have been completed and the works undertaken by the Council Works team and contractors.

The work subject to this report is limited to Stage 2 Imlay Street & Albert Terrace Upgrade and will be delivered under a construct only delivery model utilising a lump sum contract.

 Options

During the preliminary design phase three concept options for the realignment of the Imlay/Albert/Museum intersection were prepared by Council’s design team.  The options were presented to the Councillors and representatives of the community in 2017 for feedback. These options included;

Option 1 Pavement Widening

This option involved the least amount change from the current status quo and is the option that has been identified as the clear favourite by Councillors and community groups. Key design features include;

·    Widening of Albert Terrace to accommodate sweep paths for Semi trailers and 14.5m long buses.

·    Narrowing southbound formation on Imlay St to one traffic lane

·    Demolition of existing rock pitched batter and construction of new retaining wall including installation of new stormwater.

·    Introduction of line marked median.

Option 2 Cocora St Extension

This option comprised the most amount of change from the existing intersection arrangement. This option included relocating the intersection further down the hill and extending Cocora St.

Key design features of the option included;

·    Relocation of existing intersection approximately 30m further south;

·    Extension of Cocora St to join Albert Tc;

·    Demolition of existing bus Stop on Imlay St;

·    Raised concrete splitter island;

·    New footpath to provide access to Imlay St bus Stop for EKWM visitors; and

·    New retain walls, Stormwater and kerb and gutter.

This option received a considerable amount of negative feedback from key stakeholder groups including Eden Killer Whale Museum (EKWM) and Eden Chamber of Commerce.

 

Option 3 New Bus U-Turn Bay

This option comprised of Option 1 with the addition of a new cul-de-sac large enough to enable 12.5m long bus to undertake a U-turn manoeuvre . This option evolved out of the desire to improve the service to the EKWM and court house.

Key design features of this option include;

·    Features outlined in Option 1 above;

·    Construction of cul-de-sac to accommodate a 12.5m bus turning sweep path; and

·    Construction of new footpath, kerb and gutter.

It is likely that this option would require some land acquisition and was deemed to provide little or no additional benefit to the original option, Option 1.

Preferred option

Feedback obtained from the early consultation exercise clearly identified Option 1 as the preferred option. This option represented challenges from a geometry and safety perspective and determined to be the least cost option.

Based on the preferred option the concept design has been further refined through the detailed design development process. The final ‘For Tender’ design has made several modifications to enhance safety, delineation and pedestrian outcomes whilst maintaining the design intent.

Community and Stakeholder Engagement

Engagement undertaken

Council staff have been liaising closely with various stakeholders during the development phase of the project. This has included groups likely to be directly impacted by the project. These groups include;

·    Port Authority of NSW

·    Eden Killer Whale Museum

·    Sapphire Coast Buslines

·    NSW Police

·    Local Traffic Committee

·    Local freight and tucking companies

·    Local businesses.

Additionally, Council staff held a community information session in August 2020 to help boost profile of the project within the public sphere. This information session was well attended and was also broadcasted via Facebook.

Council staff have notified local residents and business owners of upcoming works via letter drop.

Several earlier meetings have been held with a range of Eden community stakeholders on the proposed works.

Engagement planned

During the delivery phase of the project Council in partnership with the successful contractor are committed to keeping the community informed. This will be undertaken using the following tools;

·    Regular project bulletins;

·    Updates to Council’s Major Projects website; and

·    Regular drop-in sessions at the Eden Community Centre to be attended in conjunction with Contractor’s representative.

Financial and Resource Considerations

Item

$ Excl GST

Expenditure Detail

 

Stage 1 CBD Bypass

$851,305

Stage 2 Imlay St & Albert Tc Upgrade

$2,500,000

Total Expenditure

$3,351,305

 

 

Source of Funds

 

Federal Govt (Building Better Regions Fund)

$1,655,405

NSW State Government (Restart Fund)

$1,695,900

Total income available

$3,351,305

 

 

Total Project Capital Cost

$3,351,305

Total Available Construction Funding

$3,351,305

Project Funding Shortfall

$0

Legal /Policy

The tender process has been undertaken in accordance with the Local Government Act 1993.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The upgrade of Imlay St and Albert Tc aligns with several goals of the Delivery Plan & Operations Plan 20/21 including;

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

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

‘Goal 11: We are an informed and engaged community with a transparent, consultative and responsive Council

Environment and Climate Change

A Review of Environmental Factors has been undertaken for this project in accordance with the Environmental Planning and Assessment Act 1979. The REF has been reviewed and determined by Council’s Planning Department as the determining authority. 

Economic

During construction, the project will provide an immediate economic boost to the township of Eden through use of local sub-contractors and suppliers.

On completion the upgrade will improve access to the port for larger vehicles such as semi-trailers and buses and improve pedestrian access to and from the wharf for visiting Cruise Ships.

This investment in Eden connecting the wharf to the CBD and then through to the Princes Highway will provide a longer-term economic benefit for local economy.

Risk

A risk assessment has been undertaken to identify key risks to the project. The top five risks including their corresponding mitigating actions are detailed below;

 

1.    Community complaint/disturbance. There is a substantial risk that the project will be delayed due to community disturbance. Actions that are being implemented to reduce the likelihood of this risk include;

·    Mandating that the contractor does not commence works onsite prior to the 27th Jan 2021 (i.e. after Summer school holidays);

·    Ensuring that the tenderer can demonstrate that they have sufficient resources and capabilities to complete the works in a timely manner;

·    Ensuring the tenderer submits a community management plan outlining how they intend to manage the community’s expectations throughout construction;

·    Engaging a local contractor whose employees are part of the Eden community. These relationships can be leveraged to deescalate any situations as they arise.

·    Ensuring an internal council resource from the community development team is committed to aiding Council’s project manager; and

·    Committing to providing clear and regular project updates to the community via a number of communications channels.

 

2.    Cost overruns; The risk that there is an overrun in the project cost is being managed via;

·    Separating work into discrete and manageable stages allows for greater certainty over project costs and ensures each stage can be delivered with sufficient contingency to address unforeseen costs if and when they arise;

·    Using a construct only contract delivered on a lump sum basis means the design is unlikely to substantially change and the price risk is passed to the contractor; and

·    Drawing down from the contingency to enhance project outcomes once more risky activities such as earthworks and services relocations have been completed.

 

3.    Time overruns there is a risk that construction duration will extend beyond the funding deed milestone date of June 30, 2021. This risk is being managed via;

·    Stipulating that the contractor submits a proposal with completion by 30 May 2021 thus providing 30 day contingency for unforeseen delays; and

·    Keeping up regular communication with funding partners to ensure they are kept informed about how the project is progressing.

 

4.    Poor quality outcomes; There is a risk that the project will be of poor quality which will have ongoing maintenance burden on Council.

·    Engaging a reputable contractor with track record of delivering quality outcomes on projects that are similar in nature and complexity.

·    Engaging a local contractor who will want to take pride in the work that are doing in ‘their backyard’.

·    Commit Council resource to attend site on a regular basis to provide surveillance and QA checks.

 

5.    Project interface risk; With several other public projects as well as private developments proposed in the area there is a risk of delay and increased cost due to the volume of work this has been mitigated via

·    Liaising regularly internally and externally with representatives from other projects.

Social / Cultural

The project will provide a step free alternative for pedestrians and active transport users to provide access from Eden CBD down Imlay street to the Snug Cove.

Council have engaged with a local aboriginal artist to purchase the licence to reproduce a number of contemporary aboriginal artworks and stories. These will be incorporated into some of the visual features in the public space areas of the project.

 

Attachments

1.            Confidential attachment to Council Report RFT 2021-48 Imlay Street and Albert Terrace, Eden Upgrade (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 16 December 2020

Item 11.6

 

11.6. Bega District Woodcraft Association     

Council approval is being sought to offer Bega District Woodcraft Association formal tenure over Reserve R91177 and R180064 being part Lot 279 DP 750190 at Tarraganda.

Director Assets and Operations  

Officer’s Recommendation

1.    That Council receive and note the report.

2.    That following consultation with the NSW Aboriginal Land Council, Council as Crown Land Manager of Reserve R91177 and R180064, approve a twenty-year licence to Bega District Woodcraft Association, for their continued occupation of part lot 279 DP 750190 at Tarraganda.

3.    That Bega District Woodcraft Association pay a minimum annual market rental of $557.70 indexed annually by CPI for their occupation of part lot 279 DP 750190 at Tarraganda.

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

 

Executive Summary

A development consent for erection of a building for use as a workshop for teaching woodcrafts was issued to Bega District Woodcraft Association over part lot 279 DP 750190 at Tarraganda and a tenure arrangement is integral to enable legal occupation of the site to continue.

Background

Lot 279 DP 750190 is made up of two Council managed Crown reserves being R91177 and R180064.  The Council for the Shire of Mumbulla was appointed trustee of R91177 on 22 June 1979.  The Trustee was named Bega Bush Fire Brigade (R91177) Reserve Trust on 19 August 1994.  Bega Valley Shire Council was appointed trustee of R180064 on 4 November 1994.  The Trustee was named Tarraganda Hall (R180064) Reserve Trust on 4 November 1994 with Bega Valley Shire Council appointed to manage the affairs of the Reserve Trust.  Following various legislative changes in the management of Crown land, and changes in the areas and names of local government authorities Bega Valley Shire Council is now Crown land manager of R91177 and R180064 for the purposes of the Crown Land Management Act 2016 (NSW) (CLM Act).

A diagram of Lot 279 DP 750190 appears below for the information of councillors.

For many years the site has been occupied harmoniously by Bega District Woodcraft Association, Council’s Community Hall and Rural Fire Services all within individual buildings as shown above.

Development consent DA 2006.0079 was granted for the erection of a building for use as a workshop for teaching woodcrafts on the reserve to the Bega District Woodcraft Association in 2006.  Following the erection of the workshop shed Council entered into a ten-year licence agreement with Bega District Woodcraft Association in 2007 for their occupation of the reserve which expired on 6 May 2017.  The licence agreement did not have the Minister’s formal consent in accordance with the requirements of the Crown Lands Act 1989 (NSW) and upon expiry Council officers contacted Crown Lands regarding formalising a tenure arrangement.  The advice back from Crown Lands was that Council issue a twelve-month temporary licence agreement to Bega District Woodcraft Association as an interim arrangement until the full extent of the CLM Act came into force in early 2018. 

When the CLM Act came into force on 1 July 2018 there was no authorisation for Council as Crown Land Manager to enter into tenure in excess of 12 months until a plan of management (PoM) had been adopted, therefore occupation continued via twelve-month temporary licence agreements.

Council Crown Land Managers are now exempt from the operation of section 3.22 of the CLM Act during the initial transitional period of three years and prior to the preparation of a PoM to enable transitional operation, management and issue of tenures.  In accordance with clause 70(2)(d) of the Crown Land Management Regulations 2018 (NSW) new licence agreements can be issued to community groups over pre- PoM Crown Land, for a term not exceeding 21 years.

Options

The options available to Council are:

1.    Accept the recommendation provided by Council officers to grant tenure to Bega District Woodcraft Association for their continued occupation of part lot 279 DP 750190 at Tarraganda and resolve accordingly.

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

Community and Stakeholder Engagement

Engagement undertaken

To ensure the continued use and occupation of the reserve is appropriate for the licence, the following items have been considered:

·    Compliance with the legislation, related policies and guidelines;

·    Compatibility with the Reserve purpose of bush fire brigade and community;

·    Native Title rights; and

·    Aboriginal land claims.

It is noted that section 46A(3) of the Local Government Act 1993 (NSW) (LG Act) provides that a lease or licence for a term exceeding five years may be granted only by tender in accordance with Division 1 of Part 3, unless it is granted to a non-profit organisation.  Therefore, in order to maintain transparency and avoid any suggestion of impropriety, Council needed to ensure that entering into direct negotiations with the current licensee was appropriate in this instance.

For the following reasons, a tender process would not be considered beneficial:

1.    Development application 2006.0079 for erection of a workshop shed has been issued and a tenure arrangement is integral to enable legal occupation of the site;

2.    The building has been in place since 2006 and does not impact on the community’s ability to use and enjoy the reserve for other purposes such as RFS and the Tarraganda community hall;

3.    The proposed licence agreement is to be granted to a not-for-profit community group who have a voluntary management committee comprising of local representatives;

4.    The costs involved in carrying out a market testing/pubic competition process are considered uneconomical in this situation as the Bega District Woodcraft Association funded the erection of the shed, so the market rental valuation is on a land only basis;

5.    The workshop shed provides an important social activity for members of the local community by providing a space for men to come together and discuss problems relating to their life such as health, work etc.

6.    The demand for community land within the Tarraganda area is considered low.

7.    The reserve is under a native title claim and an assessment has been progressed for the use by the Bega District Woodcraft Association, community hall and RFS. 

8.    Council officers are required to complete Pecuniary Interest returns annually and no conflict of interest has been disclosed; and

9.    Under the transitional arrangements and prior to the preparation of a PoM clause 70 of the CLM Regulations authorises the issue of new licence agreements to community groups only.

Members of Bega District Wood Craft Association have indicated that they would like maximum tenure of the site.

Engagement planned

Council officers intend to issue four, five-year consecutive licence agreements therefore in accordance with the provisions of section 47 of the Local Government Act 1993 (NSW) (LG Act). If Council proposes to grant a licence, in respect of community land for a period exceeding five years, it must:

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

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

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

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

Financial and Resource Considerations

An updated market rental assessment was commissioned by Council in May 2017 which indicates a starting rental figure in the order of $1,500 plus GST per annum, however as the group are a not-for-profit community organisation and have submitted a rental rebate application in line with Council’s Rental Assessment and Rebate Procedure the rental will be in line with the Crown Land minimum fee which is currently set at $557.70. 

In accordance with Council’s Management of Leases and Licences Procedure, an updated market rental valuation will be commissioned every five (5) years to determine the appropriate rental for the following five (5) year term.

Council officer time has been required to consult with the licensee and Crown Lands regarding the proposed tenure agreement.  Ongoing management of the licence during the term will also need Council officer resources as required.

Legal /Policy

Council’s ability to licence Council Managed Crown Reserves as community land is authorised by section 3.22 of the CLM Act.  Council Crown Land Managers are exempt from the operation of the CLM Act during the initial transitional period of three years and prior to the preparation of a PoM to enable transitional security and the operation, management and issue of tenures.  In accordance with clause 70(2)(d) of the Crown Land Management Regulations 2018 (NSW) new licence agreements can be issued to community groups over pre- PoM Crown Land, for a term not exceeding 21 years. 

Council officers intend to issue four, five-year consecutive licence agreements, therefore a sketch plan to define the licence area from a registered surveyor will be necessary.

Any lease/licence of part of a current parcel of land will constitute a subdivision in terms of the Environmental Planning and Assessment Act 1979 if the term of the lease (including any option of renewal) exceeds a period of five years.  However, multiple leases for the same site, each with a successive term of five years are acceptable and may be lodged together in NSW LRS.  The specified term of each lease/licence must be stated as commencing at a date no earlier than the day after the expiry of the previous lease in the series.  The leases are limited to a series of five as section 120A(3) of the Conveyancing Act 1919 states that a lease/licence is void if it takes effect more than 21 years from the date of the instrument creating it.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The building is owned by the Bega District Woodcraft Association, with the land only licensed from Council.  The building is therefore not included on Council’s Building Asset Management Plan.

Environment and Climate Change

There is no environment and climate change matters associated with the proposed issue of a tenure arrangement.

Economic

As detailed above in the Finance section of this report there is a minimal economic benefit to Council in continuing to issue a tenure arrangement to Bega District Woodcraft Association.

Risk

There are no adverse risks in allowing the reserve to be occupied by Bega District Woodcraft Association if the use is authorised by way of a formal licence agreement which contains appropriate indemnity and insurance clauses.

Council officers have undertaken a native title assessment regarding the proposed new licence as it may affect native title interests in the reserve.  When exercising powers provided by the transitional arrangements under the CLM Act, Council Crown Land Managers must obtain written advice from a qualified Native Title Manager that the proposed licence complies with the Native Title Act 1993 (Cth) (NT Act).

It was found the proposed act will affect native title, however, the act impacting Reserve 91177 and Reserve 180064 will comply with the applicable provisions of the NT Act being valid future acts under section 24JA.

The proposed issue of a licence does not involve the construction or establishment of a public work, therefore Council was not required to notify and give the opportunity to comment to the South Coast People as the native title claimants or to NTSCorp Limited representative aboriginal body for NSW as required under Section 24JB(6) of the NT Act.

Should native title not prove to be extinguished by a prior act, any native title holders may be entitled to compensation for the act, in the event of a determination that native exists in the land, and Council may be liable to indemnify the State in the payment of any compensation.

Social / Cultural

The Bega Valley Woodcraft Association provides an important social activity for members of the local community by providing men the opportunity to come together and discuss issues relating to their life such as health and work.

Attachments

Nil

 


Council 16 December 2020

Item 11.7

 

11.7. Dividing Fences Amendment Bill 2020     

A resolution of Council is being sought to make a submission to the NSW State Government on the Dividing Fences Amendment Bill 2020.

Director Assets and Operations  

Officer’s Recommendation

1.    That Council receive and note the report.

2.    That Council make representation to the member for Bega, the Hon. Andrew Constance, MP and a submission to the NSW State Government and Local Government NSW stating that Council owned, and managed land be made exempt from the Dividing Fences Amendment Bill 2020.

 

Executive Summary

The purpose of this report is to inform Council of the intent of the proposed Dividing Fences Amendment Bill 2020 (the Bill) and to seek endorsement to make representation to the member for Bega, the Hon. Andrew Constance, MP and a submission to the NSW State Government stating that Council owned and managed land should be made exempt from the Bill.

Background

The Bill was introduced by Mr Banasiak (Shooters, Fishers and Farmers Party) and seeks to amend the Dividing Fences Act 1991 (the Act) to ensure that the Crown, Councils, Road Authorities and Water NSW will be liable to pay landowners for dividing fence works.  The Bill has received its second reading speech in the Legislative Council.

Mr Banasiak stated that currently the Government has no legal obligation in respect to building or repairing of boundary fences of public and Crown land that adjoins private property.  He noted recent one-off grants by the Government in respect to damage caused by the summer bushfires and referred to the final report of the NSW Bushfire Inquiry which made recommendations that ‘there is a clear need to develop a shared understanding of what it means to be a good neighbour, regardless of land tenure’.  In addition to damage to boundary fences caused by natural disasters, Mr Banasiak stated that the Bill will create a legislative obligation between the Government and private landowners to maintain boundary fences in instances of damage caused by stock grazing on travelling stock routes.

The Act addresses how the cost of a dividing fence is shared between adjoining landowners, where an owner wants to erect a dividing fence or wants work done on an existing dividing fence.  Section 25 of the Act states that:

“(1)    This Act does not operate to impose any liability, or to confer any rights, with respect to dividing fences on:

(a)     the Crown, or

(b)     a council of a local government area, or any trustee or other person or body, in respect of land vested in (or under the care, control and management of) the council, trustee, person or body for the purposes of a public reserve, public park or such other public purposes as may be prescribed”

The Bill would omit the existing section 25 and replace it with the following section 25:

(1)  This Act binds the Crown in right of New South Wales and, in so far as the legislative power of the Parliament of New South Wales permits, the Crown in all its other capacities.

This proposed amendment would omit the exemption applied to local Councils.  The explanation note of the Bill clearly states that ‘The effect of the proposed amendment is to apply the principal Act to the Crown, councils, roads authorities and Water NSW, so that they will be liable to pay for dividing fencing work.

In the case of Bega Valley Shire Council, we own, manage and control an extremely large amount of land including road reserves.  Should the Bill be passed, the financial impact on Council would be significant.  The total accumulative liability has not been quantified to date.

Options

The options available to Council are:

1.    That Council make representation to the member for Bega, The Hon. Andrew Constance, MP and NSW State Government stating that Council owned, and managed land be made exempt from the Dividing Fences Amendment Bill 2020.

2.    That Council does not make representation regarding the proposed Bill.

Community and Stakeholder Engagement

Engagement undertaken

Council Officers have been advised that the Department of Planning Industry and Environment Crown Lands Division and Local Government NSW have made submissions opposing the Bill.

Engagement planned

There is no requirement for Council to undertake community engagement on the proposed submission to the Bill.

Financial and Resource Considerations

This matter has no direct financial impact upon Council's adopted budget or forward estimates, however if passed the Bill is likely to place a financial burden on Council for fencing of land that is owned or managed by Council.

Legal /Policy

Section 377(1)(s) of the Local Government Act 1993 (NSW) states that the making of an application, or the giving of a notice, to the Governor or Minister is a non-delegable function meaning a resolution of Council is required for such purposes.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

There is no strategic alignment matters associated with the report other than trying minimise negative financial impacts to Council.

Environment and Climate Change

There is no environment and climate change matters associated with the report.

Economic

The economic impacts associated with this report have been addressed under the finance section of this report.

Risk

There is a risk that if passed the Bill will incur a financial burden and liability to Council for fencing of land that is owned and managed by Council.

Social / Cultural

Although it is noted that there are impacts to land owners adjoining Council land through damage caused by natural disasters it is considered more appropriate that Disaster Recovery Funding arrangements be extended to provide support for fencing replacement in those circumstances.

Attachments

Nil

 


Council 16 December 2020

Item 11.8

 

11.8. Eden Fisherman's Recreation Club occupation of Lot 4 DP 1126141     

Council approval is being sought to surrender the existing lease to Eden Fisherman’s Recreation Club Limited and formalise tenure over Lot 4 DP 1126141, 81 Princes Highway, Eden until 1 August 2028 for the purpose of a Golf Course.

Director Assets and Operations  

Officer’s Recommendation

1.    That Council receive and note the report.

2.    That Council approve the surrender of the current lease as attached to the report of 16 December 2020.

3.    That Council approve a further lease to Eden Fisherman’s Recreation Club Limited of Lot 4 DP 1126141, 81 Princes Highway, Eden until 1 August 2028 for the purpose of a golf course for the annual rental of $3,600 plus GST.

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

 

Executive Summary

The current lease agreement to Eden Fisherman’s Recreation Club Limited (EFRC) is no longer acceptable as the description of land has changed as a result of subdivision and subsequent transfer of land parcels.  EFRC occupy Lot 4 DP 1126141 for the purpose of a golf course, therefore a valid tenure arrangement is required for the occupation of community land. 

Background

The EFRC submitted a DA for a 2-lot subdivision in 2001.  Council wrote to EFRC in early 2002 dealing specifically with the potential transfer of Lots 1 and 2 in the proposed subdivision.  On 25 March 2003 Council resolved at its Ordinary Meeting as follows:

1.    That Council endorse the draft Deed relating to the subdivision and disbursement of a proposed four lot subdivision of Lot 133 DP 750192 as indicated in the draft plan of subdivision submitted to Council on 25 March 2003 but subject to the two amendments detailed in the report to Council on that day.

2.    That the Mayor and General Manager be authorised to endorse the Deed and other relevant documents to give the Deed effect.

3.    That Council note that staff will finalise the assessment of the proposed subdivision and, should consent issue, then staff would action the matters required by the Deed of Agreement.  Further that staff now proceed with exhibition proposing an amendment to the Eden Town Development Control Plan limiting any use of proposed Lot 2 to public purposes or retirement accommodation purposes or a mixed use development incorporating tourism and permanent accommodation associated with golf club use.

By Deed of Agreement dated 13 May 2003 the EFRC and Bega Valley Shire Council (BVSC) agreed that the site be subdivided into 4 lots, with Lots 1 and 3 to be transferred to the EFRC.  Lots 2 and 4 remained Council land.  Lot 2 was to be operational land and was leased by BVSC to the EFRC, and Lot 4 is community land, subject to a Plan of Management (PoM) dated 10 February 2004.  The Deed stated that Lot 4 was to be leased to the Club on the same terms and conditions that apply to the existing lease for the unexpired term of that lease.  Council was to prepare a lease for execution by EFRC and lodge the lease for registration once registration of the subdivision had been complete.

The Deed further provided that in relation to the transfer of Lot 1, the EFRC agreed to hold the land to be utilised for the benefit of its members and the community.  The EFRC also agreed it shall not develop or deal with Lot 1 if any such development would result in the golf course being compromised to the extent that the course cannot operate in its current capacity as an 18-hole golf course.  EFRC and BVSC agreed that BVSC could register a restriction as to use, preventing the EFRC from so developing or dealing with Lot 1.  Development Consent for the subdivision was made on 17 February 2004.

When the former Lot 1 in DP134731 was finally subdivided in May 2008, the relevant s88B instrument created certain easements/restrictions as follows:

1.    Easement for car parking of variable width over Lot 4, for the benefit of Lot 3;

2.    Easement for services of variable width over Lot 2 for the benefit of Telstra and Country Energy on Lot 3;

3.    Restriction as to use over Lot 1 in favour of the BVSC such that the lot must not be developed or dealt with if any such dealing or development would result in the golf course being compromised; and

4.    Restriction as to use over Lot 3 in favour of the BVSC such that the Club facilities must not be used in a manner that makes them inaccessible to members of the public.

Following the subdivision, negotiations were then ongoing between the EFRC and BVSC concerning the variation of the pre-existing golf club lease in relation to Lots 2 and 4 (or surrender of the lease in view of the subdivision) and the proposal of the EFRC that it acquire Lot 2 (the request to acquire Lot 2 had been on the table for many years).  As Lot 4 was community land, there was some difficulty in determining the appropriate method for valuation for rent review required for the variation of lease process.

By 2010, the outstanding lease issues had still not been resolved, and the EFRC were still pursuing the transfer of Lot 2.  BVSC had obtained a valuation for Lot 2, intending possible transfer at market value.  EFRC wanted transfer at nominal value and considered the valuation was flawed and obtained its own valuation.

On 3 May 2011 Council resolved at its Ordinary Meeting as follows:

1.    That Council note the content of the report and subsequent legal advice given to Councillors.

2.    That in recognition of documentation provided regarding intent of former Imlay Shire Council to transfer the equivalent of Lot 2 in return of rent payments by Eden Fisherman’s Club, that Council transfer Lot 2 DP 134731, being operational land, to the Eden Fisherman’s Club for the nominal consideration of $1, on condition that at the time of transfer a Covenant be created on the Title in the same Terms as the Covenant created with the transfer of Lot 1 DP 134731 being to limit any development of the land that would compromise the use of the land as part of an eighteen hole golf course. The covenant may only be varied or modified with the consent of Council.

3.    That Council receive a further report on the plan of management and lease options for Lot 4.

Following the resolution on 3 May 2011, a further report was presented to Council’s Ordinary Meeting on 16 August 2011 and Council resolved as follows:

1.    That Council note the content of the report and subsequent legal advice given to Councillors on 3 May 2011.

2.    That in recognition of documentation provided which supports the intent of the former Imlay Shire Council to transfer Lot 2 DP 1126141 to the Eden Fishermen’s Club for the nominal consideration of $1, the land be transferred to the Club on condition that at the time of transfer, a Covenant be created on the Title to limit any development of the land that would compromise the use of the land as part of an eighteen hole golf course.  The Covenant may only be varied or modified with the consent of Council.

3.    That Council hereby authorises its official Seal to be affixed to the Plans/ Lease Documents/ Contract Documents, under the signature of the Mayor and the General Manager

Both the reports and resolutions are silent in relation to the issue of the lease over the remaining lot 4 DP 1126141 which has not been resolved since the subdivision was registered in 2008.

A new development application 2020.89 recently submitted by EFRC has triggered an investigation into a lease registered on the title of Lot 4 DP 1126141 which does not expire until 1 August 2028. 

As the lease does not expire until 1 August 2028 Council direction is being sought to surrender the existing lease term and issue a new lease over Lot 4 DP 1126141 for an appropriate rental as determined by a registered Valuer.

Options

The options available to Council are:

1.    Approve a further lease to EFRC for their continued occupation of Lot 4 DP 1125141 at 81 Princes Highway, Eden for the commencing rental fee of $3,600 plus GST per annum.

2.    Advise EFRC that Council does not wish to continue with a tenure arrangement for their use of Lot 4 DP 1125141 at 81 Princes Highway, Eden.  It should be noted EFRC currently maintain the land.  If Council resolve not to provide further tenure, a budget will need to be identified to maintain the land.

3.    Maintain the status quo noting the existing lease is no longer valid as the land has been subdivided and parts transferred to the EFRC and there is currently no financial benefit to the community for EFRC’s use of community land.

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

Community and Stakeholder Engagement

Engagement undertaken

Council officers have advised representatives from EFRC of the intention to issue a tenure arrangement over the golf course land.

Engagement planned

In accordance with the provisions of section 47 of the Local Government Act 1993 (LG Act) if Council proposes to grant a lease, in respect of community land for a period exceeding 5 years, it must:

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

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

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

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

Financial and Resource Considerations

As detailed in the existing lease agreement rent from 1 August 1983 to 31 December 1983 was $2,000 per annum, with rent thereafter being subject to an annual review on 1 January of each year and increased by CPI.

Records show an annual rental has not been collected for EFRC’s use of the land following subdivision and disposal of part of the land. 

An updated market rental assessment was commissioned by Council in October 2020 for EFRC use of Lot 4 DP 1126141 which indicates a starting rental figure in the order of $3,600 plus GST per annum, to be increased annually by CPI (All Groups –Sydney).  In accordance with Council’s Management of Leases and Licences Procedure, an updated market rental valuation will be commissioned every five (5) years to determine the appropriate rental for the following five (5) year term.

Liaison with external legal representatives will be required to arrange the surrender of lease and new lease documentation.  Ongoing management of the lease agreement during the term will also require Council officer resources.

Legal /Policy

Section 53 of the Real Property Act 1900 (NSW) (RP Act) provides that land leased for more than three (3) years must be in the approved form and Section 42(1)(d) of the RP Act and the Registrar-General’s Guidelines, requires a lease for a term exceeding three (3) years to be registered on title.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Lot 4 is Council owned community land, categorised sportsground and subject to a PoM dated 10 February 2004.  The granting of lease for the use of this community land for golf course purposes is consistent with core objectives for sportsground.

Environment and Climate Change

There is no environment and climate change matters associated with the proposed lease of Lot 4.

Economic

As detailed above in this report Council is not currently receiving any financial benefit on behalf of the community for EFRC occupation of Lot 4.

Risk

There are no adverse risks in allowing Lot 4 DP 1126141 at 81 Princes Highway, Eden to be occupied by the current tenant for a further term as long as the use is authorised by way of a formal lease agreement which contains appropriate indemnity and insurance clauses.

Social / Cultural

As defined by the PoM the community land will continue to be a viable component of the EFRC golf course and it will continue to perform an important landscape for the highway entry to Eden township.

Attachments

1.         Lease Dealing W437949 between Eden Fisherman Recreation Club and Bega Valley Shire Council

2.         Positive covenant lodged over Lot 2 DP 1126141 Dealing AG830284 Eden Fisherman's Recreation Club

3.         Council report dated 3 May 2011 - Eden Fishermen's Recreation Club

4.         Council report dated 16 August 2011 Eden Fishermen's Recreation Club

5.         Opteon Market Rental Valuation over Lot 4 DP 1126141 Eden Fisherman's Recreation Club

 


Council

16 December 2020

Item 11.8 - Attachment 1

Lease Dealing W437949 between Eden Fisherman Recreation Club and Bega Valley Shire Council

 

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Council

16 December 2020

Item 11.8 - Attachment 2

Positive covenant lodged over Lot 2 DP 1126141 Dealing AG830284 Eden Fisherman's Recreation Club

 

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Council

16 December 2020

Item 11.8 - Attachment 3

Council report dated 3 May 2011 - Eden Fishermen's Recreation Club

 

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Council

16 December 2020

Item 11.8 - Attachment 4

Council report dated 16 August 2011 Eden Fishermen's Recreation Club

 

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Council

16 December 2020

Item 11.8 - Attachment 5

Opteon Market Rental Valuation over Lot 4 DP 1126141 Eden Fisherman's Recreation Club

 

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Council 16 December 2020

Item 11.9

 

11.9. Land matters associated with Tathra Lawrence Park and Preschool     

The lease and licence agreement for Tathra Children’s Services Incorporated to occupy Council owned community land, being part Lot 1 DP 1125988 at Tathra for the purpose of a preschool is due for renewal.  Council approval is therefore being sought to enter into a new tenure arrangement.

Director Assets and Operations  

Officer’s Recommendation

1.    That Council receive and note the report.

2.    That Council approve a further five (5) year lease to Tathra Children’s Services Incorporated over part Lot 1 DP 1125988 at Tathra for the purpose of a preschool, 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 Tathra Children’s Services Incorporated be responsible for payment of the costs of Council or its Solicitors in relation to the preparation and registration of the lease.

4.    That the Mayor and/or General Manager be authorised to execute the necessary documentation to formalise the above course of action.

 

Executive Summary

The current lease and licence agreement for Tathra Children’s Services Incorporated to occupy Council owned community land, being part Lot 1 DP 1125988 at Tathra for the purpose of a preschool expires on 31 December 2020.  As a result of the land configuration at the site investigations have revealed the most financially viable option is to issue tenure by way of a five (5) year lease agreement and Council approval to enter a new lease is being sought.

Background

 

The land parcels associated with Lawrence Park and Tathra Preschool are shown on the below diagram for the information of councillors.  It appears Lot 1 DP 1125988 and Lots 184, 185, 186 DP 750236 were known as Reserve 82561 for public recreation purposes vested in Council in fee simple by notice published in the Government Gazette dated 22 October 1976.

 

Council officers were advised by Land and Property Information in February 2010 that Lot 1 DP 1125988 and Lots 184, 185, 186 DP 750236 were to be converted from Old System title to Torrens title.  New certificate of title for the land parcels were issued to Council in September 2011.  Unfortunately, all parcels are limited title and the boundaries have not been investigated by the Registrar General making survey work associated with the land more difficult.

 

Tathra Preschool was officially opened in March 1987 and is administered by TCSI as a non-profit community owned service.  A Deed of lease between Council and TCSI was issued for a term of twenty (20) years on 19 September 1987 over a 4,040m2 portion of Lot 1 DP 1125988.  The Deed of lease was approved by Council at its Ordinary Meeting of 23 June 1987 and a copy of the report is attached for the information of councillors.

 

Following expiry of the Deed of lease in September 2007 Council staff commenced work on a community land Plans of Management (PoM) for the site which was formally adopted by Council at its Ordinary Meeting of 2 December 2008 as follows:

 

1.    That Council formally adopt the draft Plans of Management for the Tathra Pre-School and Merimbula Tennis Courts – Community Lands.

2.    That Council’s Contracts Officer complete lease negotiations with the Tathra Pre-School Inc and Merimbula Tennis Club Committee.

3.    That following completion of the lease negotiations, the draft lease agreements be presented to Council for approval.

 

As a result if the above Resolution a formal lease was issued to TCSI on 1 January 2011 for a period of ten (10) years over the preschool building (premise lease) and a separate licence agreement to formalise the use of the surrounding open space and carparking area which did not require registration on the title and run concurrently with the lease over the term.  Both the lease and licence are due to expire on 31 December 2020 and require renewal. 

 

As the building is owned by TCSI a premise lease is not considered the best option for granting tenure of the land as it confers that Council as lessor is the owner of the building.  The market rental valuation undertaken for the purpose of calculating rent has been on a land only basis even though the lease is for the building.  The licence is for nominal value only and has been run concurrently with the lease over the 10-year term.

 

Prior to issuing a new tenure arrangement Council officers have carried out an investigation into whether a subdivision of land is possible to individually identify Lawrence Park and the Preschool on separate parcels to enable a long-term land only tenure arrangement to be issued to TCSI.  It has been confirmed that a development application (DA) to achieve the two (2) lots would be required with Lot 1 to be fully surveyed and Lot 2 being a compiled residue.  Costs associated with the subdivision and DA have been estimated as follows:

·    Survey work - $5,380;

·    Statement of Environmental Effects and preparation of DA application - $1,500;

·    Biodiversity assessment - $363 (no change in use);

·    DA fees - $720.50;

·    Bushfire report – To be confirmed with an external consultant.

As this proposal will fall within integrated development, a preschool requires an assessment as a Special Fire Protection facility.  Even though there is no change to land use or any proposed upgrades to the preschool facilities, a Bush Fire Report (Report) prepared by an external consultant is required to address requirements of Planning for Bushfire Protection 2019.  This will likely trigger upgrades to the preschool facility and surrounding Asset Protection Zone (APZ) requirements all of which would be addressed in the Report and will require referral to the NSW Rural Fire Service.

 

Given the above findings a subdivision of the land is not considered a financially viable option and upon review of the current NSW Land Registry Services (NSW LRS) rules regarding plans for lease purposes it is thought a compiled plan attached to a lease could be possible if the lease is only for 5 years or less.  If that is the case, the fee to prepare a compiled sketch plan would be $330.  If a plan of survey is required by NSW LRS, then the fee of approximately $5,380 would apply.

 

Options

The options available to Council are:

1.    Approve the 2-lot subdivision of Lot 1 DP 1125988 and Lots 184, 185, 186 DP 750236 as detailed above to enable a land lease to be issued to TCSI for their continued occupation of part Lot 1 DP 1125988 at Tathra.  Noting the costs associated with the subdivision and potential upgrades to the preschool facility and surrounding APZ as a result of the Planning for Bushfire Protection 2019.

2.    Maintain the status quo and issue a lease over the footprint of the building for twenty (20) years as requested by TCSI and a separate licence agreement to formalise the use of the surrounding open space and carparking area.  Noting a premise lease confers that Council as lessor is the owner of the building and the market rental valuation undertaken in the past has been on a land only basis only.  If the market rental valuation was undertaken on the land and building the rental would significantly increase as a result. This would also not be reflect of the historical practical building management/responsibility arrangements of the site

3.    Approve a further five (5) year lease to Tathra Children’s Services Incorporated over part Lot 1 DP 1125988 at Tathra for the purpose of a preschool, 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.

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

Community and Stakeholder Engagement

Engagement undertaken

Staff have consulted with representatives from TCSI who have indicated they wish to continue with their occupation of the site for a maximum term but understand the limitations as a result of the land tenure and possible implications of progressing a subdivision.

Engagement planned

In accordance with the provisions of section 47A of the Local Government Act 1993 (LG Act) if Council proposes to grant a lease, in respect of community land for a period of 5 years or less, it must:

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

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

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

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

Financial and Resource Considerations

As outlined above a market rental assessment was last commissioned by Council in February 2016 on a land only basis which indicated a starting rental figure in the order of $3,000 plus GST per annum, to be increased annually by CPI (All Groups –Sydney).  TCSI currently have a rental rebate of 98% off market rent and currently pay $547.80 for their use and occupation of part Lot 1 DP 1125988 at Tathra.

In accordance with Council’s Management of Leases and Licences Procedure, an updated market rental valuation will need to be commissioned before entering into any new tenure arrangement to determine the appropriate rental for the following five (5) year term.

Liaison with external legal representatives will be required to arrange the new lease documentation.  Ongoing management of the lease agreement during the term will also require Council officer resources.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legal /Policy

Section 53 of the Real Property Act 1900 (NSW) (RP Act) provides that land leased for more than three (3) years must be in the approved form and Section 42(1)(d) of the RP Act and the Registrar-General’s Guidelines, requires a lease for a term exceeding three (3) years to be registered on title.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

TCSI use of part Lot 1 DP 1125988 is consistent with the PoM adopted at Council’s Ordinary Meeting of 2 December 2008.

Environment and Climate Change

The land around the preschool and car park has been cleared and is managed as an APZ.  The centre of the preschool is mown grass and provides for an extensive area for children’s play.  Large native vegetation has been planted around the perimeter of the preschool site providing extensive shade for the children’s play areas.

Economic

As detailed above in this report there is currently minimal financial benefit to Council for the land lease of the premises, but Council does not take any maintenance responsibilities for the asset or preschool grounds.  TCSI take full responsibility for the building and grounds funding multiple improvements over the years in excess of $300,000. Childcare and early childhood education access are considered  extremely beneficial for long term economic outcomes.

Risk

There are no adverse risks in allowing part Lot 1 DP 1125988 to be occupied by TCSI for a further term as long as the use is authorised by way of a formal lease agreement which contains appropriate indemnity and insurance clauses. 

There is risk to Council associated with issuing a premise lease that Council will be held responsible for the preschool building asset which it does not currently have budget for.

Social / Cultural

TCSI is registered as a charity with the Australian Charities and Not-For-Profits Commission and provides a much needed and well utilised service to those in the Tathra and surrounding areas. 

The building and surrounding grounds has been substantially upgraded and maintained by TCSI over many years.

The benefits of participation in quality early childhood education for children, families and the community are widely documented.

The requirement for strict accreditation and licensing to operate such facilities is not widely available and the TCSI has successful provided a high-level service for some 20 plus years.

Attachments

1.         Council report and resolution dated 23 June 1987 - Tathra Preschool

2.         Council report dated 2 December 2008 - Tathra Pre-School & Merimbula Tennis Courts PoM

 


Council

16 December 2020

Item 11.9 - Attachment 1

Council report and resolution dated 23 June 1987 - Tathra Preschool

 

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Council

16 December 2020

Item 11.9 - Attachment 2

Council report dated 2 December 2008 - Tathra Pre-School & Merimbula Tennis Courts PoM

 

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Council 16 December 2020

Item 11.10

 

11.10.       Proposed divestment of Lots 9 - 12 Sec 1 & 2 DP 1085 at Park Street, Bega     

A formal request has been received for the purchase of Lots 9 – 12 Sec 1 & 2 DP 1085 at Park Street, Bega.

Director Assets and Operations  

Officer’s Recommendation

1.    That Council receive and note the report.

2.    That Council approve the divestment of Lots 9 – 12 Sec 1 & 2 DP 1085 at Park Street, Bega to the offeree [insert name], for the amount as offered.

3.    That Council’s legal fees to finalise this matter be payable by Council from the proceeds of sale.

4.    That Council approve the lodgement of a possessory title application for Lot 10 Sec 1 DP 1085 at NSW Land Registry Services.

5.    That Council hereby authorise its official seal to be affixed to the contract documents under the signature of the Mayor and General Manager. 

6.    That the offeree be advised of Council’s decision.

7.    That the proceeds of the sale be retained in the asset renewal reserve to fund asset renewals as outlined in Council’s adopted Asset Management Plans.

 

Executive Summary

A formal offer to purchase Lots 9 – 12 Sec 1 & 2 DP 1085 at Park Street, Bega has been received and Council’s consideration is requested to progress with divestment of the land parcels.  The request is in line with Council’s identified Land Divestment Strategy, with divestment removing this financial liability from Council.

Background

Council resolved, at its Ordinary Meeting of 13 March 2019, when considering its position on the proposed divestment of Lots 9 – 12 Sec 1 & 2 DP 1085 at Park Street, Bega as follows:

1.    That Council receive and note the report and attached Vacant Land Review Sheet including details on individual land parcels this report relates to.

2.    That Council appoint a registered Valuer by competitive quotation process to provide Bega Valley Shire Council with a formal market valuation for Lots 9 – 12 Sec 1 DP 1085 at Park Street, Bega.

3.    That Council appoint a suitably qualified Real Estate Agent by competitive quotation process to represent Bega Valley Shire Council’s interests in divesting of Lots 9 – 12 Sec 1 DP 1085 at Park Street, Bega by public auction, private treaty or expression of interest.

4.    That Council delegate authority to the General Manager to enter into a suitable Agency Agreement with the successful Real Estate Agent upon completion of the competitive quotation process for the marketing, sale negotiation and transactional settlement for the above mentioned land parcels.

5.    That all offers be brought back to Councillors for final Resolution.

and;

1.    That Council receive and note the report and attached Vacant Land Review Sheet including detail on individual land parcels that this report relates to.

2.    That Council appoint a registered Valuer by competitive quotation process to provide Bega Valley Shire Council with a formal market valuation for Lots 9 – 12 Sec 2 DP 1085 at Park Street, Bega.

3.    That Council appoint a suitably qualified Real Estate Agent by competitive quotation process to represent Bega Valley Shire Council’s interests in divesting of Lots 9 – 12 Sec 2 DP 1085 at Park Street, Bega by public auction, private treaty or expression of interest.

4.    That Council delegate authority to the General Manager to enter into a suitable Agency Agreement with the successful Real Estate Agent upon completion of the competitive quotation process for the marketing, sale negotiation and transactional settlement of the above mentioned land parcels.

5.    That all offers be brought back to Councillors for final Resolution.

Following the Resolution of Council, a competitive quotation process to engage IPN Valuers was undertaken and formal market valuations were obtained which are attached to this report.  An internal review of the valuations was carried out by staff in consideration of setting an asking price for sale, and as a result second valuations were obtained from Opteon Property Group Pty Ltd.

Following receipt of the formal market valuations a further competitive request for quotation process to appoint a suitably qualified Real Estate Agent to represent Bega Valley Shire Council’s interests in divesting of several land parcels was undertaken with LJ Hooker Bega being awarded the works and a formal agency agreement being finalised in August 2020.

The land parcels are currently zoned IN2 - Light Industrial and were acquired by Council in 1975.  Unfortunately, at the time of transfer Volume 760 Folio 210 was crossed out, this parcel is now Lot 10 Sec 1 DP 1085 and still appears in a third parties name.  Council holds the certificate of title for the land and has held possession since the acquisition in 1975 so officers are in the process of preparing the necessary documentation for a possessory title application to be lodged at NSW Land Registry Services (NSW LRS) for the title to be issued in Councils name.

LJ Hooker have advised the offeree of the possessory title application which will need to be finalised before the sale proceeds.  A copy of the offer and sale advice is attached for the information of Councillors.

Options

The options available to Council are:

1.    Proceed with disposal of Lots 9 – 12 Sec 1 & 2 DP 1085 at Park Street, Bega for the value as offered and resolve accordingly.

2.    Decline to accept the offer received and advise the offeree of Council’s decision and await further offers.

3.    Decline to accept the offer received and advise the offeree of Council’s decision and an agreed value for the disposal of Lots 9 – 12 Sec 1 & 2 DP 1085 at Park Street, Bega.

4.    Retain ownership of Lots 9 – 12 Sec 1 & 2 DP 1085 at Park Street, Bega.

Community and Stakeholder Engagement

Engagement undertaken

Council resolved at its Ordinary Meeting of 13 March 2019 to approve a request for quotation (RFQ) process to sell Lots 9 – 12 Sec 1 & 2 DP 1085 at Park Street, Bega.  LJ Hooker were appointed to market the property on Council’s behalf and have received a formal offer for the purchase of the land parcels.

Prior to marketing commencing Council’s legal representatives were engaged to prepare the necessary sale contract and once the possessory title application has been finalised exchange of contracts can take place.

Engagement planned

Council officers will continue to consult with the Agent and legal representatives to action the Resolution of Council.

Financial and Resource Considerations

To maximise the economic return to Council the RFQ to engage a qualified Real Estate Agent was carried out with land parcels grouped together as follows:

·    Lots 9 – 12 Sec 1 DP 1085 Park Street, Bega (under offer)

·    Lots 9 – 12 Sec 2 DP 1085 Park Street, Bega (under offer)

·    Lot 5 DP 843822 & Lot 16 DP 112193 31 Mecklenberg Street, Bega

·    Lot 13 DP 1107310 & Lot 18 DP 255593 23 Mecklenberg Street, Bega

·    Lot 66 DP 1171407 Ravenswood Street, Bega

·    Lot 121 DP 847899 Arthur Kaine Drive, Merimbula.

Fees payable to LJ Hooker are $6,750 overall for marketing all properties and 2% commission on each sale. 

All options above will have additional financial and resource implications.  A sale option will include additional officers' time and resources as well as the engagement of legal representatives and legal costs.  Costs involved in the proposed disposal of Lots 9 – 12 Sec 1 & 2 DP 1085 at Park Street, Bega will be offset against the proceeds of sale.

If Council retains Lots 9 – 12 Sec 1 & 2 DP 1085 at Park Street, Bega, Council’s financial liability for the land parcels will be retained.

It is proposed that any proceeds of the sale after fees and other charges be retained in the asset renewal reserve to fund asset renewals as outlined in Council’s adopted Asset Management Plans.

Legal /Policy

Under the Local Government Act 1993 (NSW) (LG Act), there is no restraint on Council’s ability to sell or otherwise dispose of land classified as operational land.  Section 377(1)(h) of the LG Act requires a specific Resolution of Council to dispose of any land.

Regarding the possessory title application, Council’s legal representatives will apply to NSW LRS on Council behalf, which will include a statutory declaration from Council’s General Manager regarding the use of the land.  NSW LRS will then request that Council publish notice of its intention to take possession of the land in a local newspaper and to serve notice on adjoining landholders (sometimes LRS may not require both of these methods).  Anyone with an interest in the land will then have one month to put a caveat on title if they believe they have a right to the land.  If no one comes forward, and the supporting evidence is in order, the application should be approved with Council listed on title as the legal owner.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

A list of potential surplus land was identified in a report to Council’s Ordinary Meeting of 13 December 2017 (13.2 - Asset review- setting the framework for 2018/19 and into the refocus of the Long-Term Financial Plan).  Following the Resolution of Council, officers undertook a review of Council’s vacant operational land portfolio and Lots 9 – 12 Sec 1 & 2 DP 1085 at Park Street, Bega were identified as being suitable for divestment.

Environment and Climate Change

There is no environment and climate change matters associated with the proposed divestment of land.

Economic

In accordance with Council’s adopted Financial Strategy, Council will be required to use the proceeds from the sale of ‘operational’ land to leverage investment or strategic outcomes.  Council may also use funds generated from land disposal to leverage acquisition of other land critical to the orderly development of important urban or environmental areas, and to supplement its revenue sources and minimise the demand for increasing rates above rate-pegging, or a reduction in services.

Risk

In accordance with Council’s Acquisition and Disposal of Land Procedure 2.02.4, disposal of land by Council requires a formal process that ensures probity, due diligence, analysis of risk and other key issues.

Social / Cultural

There are no social / cultural matters associated with the proposed divestment of land.

Attachments

1.         Council report - Land Divestment Options - Lots 9 - 12 Sec 1 DP 1085 Park Street, Bega

2.         Council report - Land Divestment Options - Lots 9 - 12 Sec 2 DP 1085 Park Street, Bega

3.            IPN Valuation report - Lots 9 - 12 Sec 1 DP 1085 Park Street, Bega (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 and would also impact Council’s position in relation to its consideration, therefore impacting the 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 the commercial information.

 

 

4.            IPN Valuation report - Lots 9 - 12 Sec 2 DP 1085 Park Street, Bega (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 and would also impact Council’s position in relation to its consideration, therefore impacting the 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 the commercial information.

 

 

5.            Opteon Valuation report - Lots 9 - 12 Sec 1 DP 1085 Park Street, Bega (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 and would also impact Council’s position in relation to its consideration, therefore impacting the 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 the commercial information.

 

 

6.            Opteon Valuation report - Lots 9 - 12 Sec 2 DP 1085 Park Street, Bega (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 and would also impact Council’s position in relation to its consideration, therefore impacting the 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 the commercial information.

 

 

7.            Offer of purchase lots 9 - 12 Sec 1 & 2 DP 1085 Park Street, Bega (Confidential - As this attachment contains information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business as per Section 10A(2)(c) 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 and would also impact Council’s position in relation to its consideration, therefore impacting the 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 the commercial information.

 

 

 


Council

16 December 2020

Item 11.10 - Attachment 1

Council report - Land Divestment Options - Lots 9 - 12 Sec 1 DP 1085 Park Street, Bega

 

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Council

16 December 2020

Item 11.10 - Attachment 2

Council report - Land Divestment Options - Lots 9 - 12 Sec 2 DP 1085 Park Street, Bega

 

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Council 16 December 2020

Item 11.11

 

11.11.       Proposed divestment of Lot 5 DP 843822 and Lot 16 DP 112193 Mecklenberg Street, Bega     

A formal request has been received for the purchase of Lot 5 DP 843822 and Lot 16 DP 112193 Mecklenberg Street, Bega.

Director Assets and Operations  

Officer’s Recommendation

1.    That Council receive and note the report.

2.    That Council approve the divestment of Lot 5 DP 843822 and Lot 16 DP 112193 Mecklenberg Street, Bega to the offeree [insert name], for the amount as offered.

        OR

        That Council delegate authority to the General Manager to continue to negotiate a sale of Lot 5 DP 843822 and Lot 16 DP 112193 Mecklenberg Street, Bega with the offeree for a minimum value as determined and set by Council.

3.    That the sale be subject to the registration of a formal easement in favour of Bega Valley Shire Council for the sewer main traversing Lot 5 DP 843822 and Lot 16 DP 112193.

4.    That Council’s legal fees to finalise this matter be payable by Council from the proceeds of sale.

5.    That Council hereby authorise its official seal to be affixed to the contract documents under the signature of the Mayor and General Manager. 

6.    That the offeree be advised of Council’s decision.

7.    That the proceeds of the sale be retained in the asset renewal reserve to fund asset renewals as outlined in Council’s adopted Asset Management Plans.

 

Executive Summary

A formal offer to purchase Lot 5 DP 843822 and Lot 16 DP 112193 Mecklenberg Street, Bega has been received and Council’s consideration is requested to progress with divestment of the land parcels.  The request is in line with Council’s identified Land Divestment Strategy, with divestment removing this financial liability from Council.

Background

Council resolved, at its Ordinary Meeting of 13 March 2019, when considering its position on the proposed divestment of Lot 5 DP 843822 and Lot 16 DP 112193 Mecklenberg Street, Bega as follows:

1.    That Council receive and note the report and attached Vacant Land Review Sheet including detail on individual land parcels that this report relates to.

2.    That Council appoint a registered Valuer by competitive quotation process to provide Bega Valley Shire Council with a formal market valuation for Lot 5 DP 843822 and Lot 16 DP 112193 at Mecklenberg Street, Bega.

3.    That Council appoint a suitably qualified Real Estate Agent by competitive quotation process to represent Bega Valley Shire Council’s interests in divesting of Lot 5 DP 843822 & Lot 16 DP 112193 at Mecklenberg Street, Bega by public auction, private treaty or expression of interest.

4.    That Council delegate authority to the General Manager to enter into a suitable Agency Agreement with the successful Real Estate Agent upon completion of the competitive quotation process for the marketing, sale negotiation and transactional settlement of the above mentioned land parcels.

5.    That all offers be brought back to Councillors for final Resolution.

Following the Resolution of Council, a competitive quotation process to engage IPN Valuers was undertaken and a formal market valuation was obtained which is attached to this report. 

Following receipt of the formal market valuation a further competitive request for quotation process to appoint a suitably qualified Real Estate Agent to represent Bega Valley Shire Council’s interests in divesting of several land parcels was undertaken with LJ Hooker Bega being awarded the works and a formal agency agreement being finalised in August 2020.

Both Lot 5 DP 843822 and Lot 16 DP 112193 Mecklenberg Street, Bega are currently zoned R2 - Low Density Residential and as outlined in the detail attached to this report Lot 5 DP 843822 is less than minimum lot size for a dwelling entitlement on its own and both Lot 5 DP 843822 and Lot 16 DP 112193 are constrained by a sewer main that diagonally traverses through the site.  In addition, the land steeply slopes away from Mecklenberg Street and there is a restriction on use of land preventing access from the highway. 

LJ Hooker has formally written to Council with an offer for the purchase of Lot 5 DP 843822 and Lot 16 DP 112193 Mecklenberg Street, Bega.  The attached correspondence from LJ Hooker outlines the offer and the basis for the offer.

Options

The options available to Council are:

1.    Proceed with disposal of Lot 5 DP 843822 and Lot 16 DP 112193 Mecklenberg Street, Bega for the value as offered and resolve accordingly.

2.    Decline to accept the offer received and advise the offeree of Council’s decision and await further offers.

3.    Decline to accept the offer received and advise the offeree of Council’s decision and an agreed value for the disposal of Lot 5 DP 843822 and Lot 16 DP 112193 Mecklenberg Street, Bega.

4.    Retain ownership of Lot 5 DP 843822 and Lot 16 DP 112193 Mecklenberg Street, Bega.

Community and Stakeholder Engagement

Engagement undertaken

Council resolved at its Ordinary Meeting of 13 March 2019 to approve a request for quotation (RFQ) process to sell Lot 5 DP 843822 and Lot 16 DP 112193 Mecklenberg Street, Bega.  LJ Hooker were appointed to market the property on Council’s behalf and have received a formal offer for the purchase of the land parcels.

Prior to marketing commencing Council’s legal representatives were engaged to prepare the necessary sale contract and will be required to formalise the necessary documentation for the creation of an easement for the sewer main prior to exchange of contracts taking place.

Engagement planned

Council officers will continue to consult with the Agent and legal representatives to action the Resolution of Council.

Financial and Resource Considerations

To maximise the economic return to Council the RFQ to engage a qualified Real Estate Agent was carried out with land parcels grouped together as follows:

·    Lots 9 – 12 Sec 1 DP 1085 Park Street, Bega (under offer)

·    Lots 9 – 12 Sec 2 DP 1085 Park Street, Bega (under offer)

·    Lot 5 DP 843822 & Lot 16 DP 112193 31 Mecklenberg Street, Bega (under offer)

·    Lot 13 DP 1107310 & Lot 18 DP 255593 23 Mecklenberg Street, Bega

·    Lot 66 DP 1171407 Ravenswood Street, Bega

·    Lot 121 DP 847899 Arthur Kaine Drive, Merimbula.

Fees payable to LJ Hooker are $6,750 overall for marketing all properties and 2% commission on each sale. 

All options above will have additional financial and resource implications.  A sale option will include additional officers' time and resources as well as the engagement of legal representatives and legal costs.  Costs involved in the proposed disposal of Lot 5 DP 843822 & Lot 16 DP 112193 31 Mecklenberg Street, Bega and the creation of an easement will be offset against the proceeds of sale.

If Council retains Lot 5 DP 843822 & Lot 16 DP 112193 31 Mecklenberg Street, Bega, Council’s financial liability for the land parcels will be retained.

It is proposed that proceeds of the sale after fees and other charges be retained in the asset renewal reserve to fund asset renewals as outlined in Council’s adopted Asset Management Plans.

 

Legal /Policy

Under the Local Government Act 1993 (NSW) (LG Act), there is no restraint on Council’s ability to sell or otherwise dispose of land classified as operational land.  Section 377(1)(h) of the LG Act requires a specific Resolution of Council to dispose of any land.

Council’s Acquisition and Disposal of Land Procedure may be varied to meet the needs of a particular matter, by Resolution of the Council.  The reasons for the proposed disposal of an asset below market value however, must be clearly articulated within the report submitted for consideration by the Council.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

A list of potential surplus land was identified in a report to Council’s Ordinary Meeting of 13 December 2017 (13.2 - Asset review- setting the framework for 2018/19 and into the refocus of the Long-Term Financial Plan).  Following the Resolution of Council, officers undertook a review of Council’s vacant operational land portfolio and Lot 5 DP 843822 & Lot 16 DP 112193 Mecklenberg Street, Bega were identified as being suitable for divestment.

Environment and Climate Change

There is no environment and climate change matters associated with the proposed divestment of land.

Economic

In accordance with Council’s adopted Financial Strategy, Council will be required to use the proceeds from the sale of ‘operational’ land to leverage investment or strategic outcomes.  Council may also use funds generated from land disposal to leverage acquisition of other land critical to the orderly development of important urban or environmental areas, and to supplement its revenue sources and minimise the demand for increasing rates above rate-pegging, or a reduction in services.

Risk

In accordance with Council’s Acquisition and Disposal of Land Procedure 2.02.4, disposal of land by Council requires a formal process that ensures probity, due diligence, analysis of risk and other key issues.

Social / Cultural

There are no social / cultural matters associated with the proposed divestment of land.

Attachments

1.         Council report dated 13 March 2019 - Land Divestment Options - Lot 5 DP 843822 & Lot 16 DP 112193 Mecklenberg Street, Bega

2.         Land Divestments Options Lot 5 DP 843822 & Lot 16 DP 112193 Mecklenberg Street, Bega

3.            IPN Valuation report - Lot 5 DP 843822 and Lot 16 DP 112193 Mecklenberg Street, Bega (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 and would also impact Council’s position in relation to its consideration, therefore impacting the 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 the commercial information.

 

 

4.            Offer to purchase Lot 5 DP 843822 and Lot 16 DP 112193 Mecklenberg Street, Bega (Confidential - As this attachment contains information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business as per Section 10A(2)(c) 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 and would also impact Council’s position in relation to its consideration, therefore impacting the 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 the commercial information.

 

 

 


Council

16 December 2020

Item 11.11 - Attachment 1

Council report dated 13 March 2019 - Land Divestment Options - Lot 5 DP 843822 & Lot 16 DP 112193 Mecklenberg Street, Bega

 

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Council

16 December 2020

Item 11.11 - Attachment 2

Land Divestments Options Lot 5 DP 843822 & Lot 16 DP 112193 Mecklenberg Street, Bega

 

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Council 16 December 2020

Item 11.12

 

11.12.       Apex Park Cobargo Toilet Costs     

This report has been prepared in response to a resolution of Council requesting a report on the costs associated with an additional toilet at Apex Park in Cobargo.

 

Director Assets and Operations  

Officer’s Recommendation

It is recommended that Council: 1.           Note the costs associated with an additional toilet block in Cobargo as outlined in this report

2.    Does not support an additional toilet block at Apex Park in Cobargo

 

Executive Summary

Council recently resolved to receive a report on the costs associated with an additional toilet block at Apex Park in Cobargo. The resolution was made at the same time Council resolved to rebuild the destroyed toilet block in Cobargo in its previous location.

Background

At the 11 November 2020 Council meeting Councillor Allen moved a tow part motion which was resolved by Council as follows:

1.    That Council rebuild the public toilets in Cobargo, destroyed in the Summer fires, at their previous location in the main street.

2.    That staff provide a report to Council on the costs associated with constructing an additional single, accessible toilet at Apex Park in Cobargo.

The background associated with the notice of motion is presented again below to provide context behind why the report was requested:

As a consequence of the tragic fires over the 2019/20 summer period the public toilets in the main street of Cobargo were destroyed. Temporary hire toilets have been in place since which are costly and not to a standard the community would like. Two main sites have been proposed for consideration being on the existing site and the Apex Park site. It is time for Council to provide some certainty and move forward with a site decision. The land the public toilets were on is land that was gifted to the community for the purpose of building public toilets. There has been a petition circulating in the Cobargo community which demonstrates strong support for the toilets being rebuilt on the existing site.

At the 25 November 2020 Council meeting a petition was tabled that reinforced support for Councils resolution to rebuild the destroyed toilets in their former location.

 

Options

There are two key options associated with this report as follows:

1.    Not consider any additional toilet block construction in Cobargo

2.    Consider seeking funding for an additional toilet block in Cobargo

Community and Stakeholder Engagement

There has been limited direct community engagement associated with construction of a new toilet block at Apex Park Cobargo. During consultation on the recent upgrades to Apex Park there was community feedback that a toilet block at the park would be a welcomed addition. Council has also recently received a community project proposal seeking support for a toilet block at Apex Park.

Engagement undertaken

Although there has been no direct engagement undertaken on construction of an additional toilet block in Cobargo it has been raised as a desirable outcome through other community engagement processes.

Engagement planned

There is no further community engagement planned based on the recommendation provided in this report

Financial and Resource Considerations

The purpose of this report is to present to Council the costs associated with a new toilet block at Apex Park in Cobargo.

Based on recently completed public amenities projects the costs associated with constructing an additional single, accessible toilet at Apex Park in Cobargo are estimated to be $80,000.

Annual operations and maintenance are estimated to be $8000 per annum which is based on comparable small local amenities costs.

Assuming a typical useful life of fit out of 25 years and of 50 years for the structure the estimated annual depreciation expense is $3,200.

Combining the annual maintenance cost with the depreciation expense result in a total annual asset cost of $11,200 in addition to the up front $80,000 capital cost.

Legal /Policy

There are no legal or policy implications associated with this report.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Construction of a new toilet block in Cobargo does not align with any strategic directions of Council. Council does have a public toilet strategy that was adopted in June 2020 which provides a focus on maintaining existing facilities and considering improvements at renewal intervals as appropriate.

Environment and Climate Change

There are limited environment and climate change impacts associated with this report noting that if Council did proceed with an additional toilet block at Apex Park it would require energy consumption to pump sewerage. The required energy consumption or potential solutions and associated costs have not been assessed at this stage.

Economic

There are limited economic associated with this report.

Risk

The main risk associated with this report is the financial risk associated with construction of a new asset and the associated whole of life costs.

Social / Cultural

There are social benefits associated with increasing the availability of public amenities across the Shire, however there are also limitations in the communities ability to pay for services, hence it is important to balance availability of services with the cost and affordability of providing services such as public toilets.

Attachments

Nil

  

 


Council

16 December 2020

 

Staff Reports –  Finance

 

16 December 2020

 

13.1            Presentation of Financial Statements and Audit Report for the Year Ended 30 June 2020........................................................................................................................... 324

13.2            RFT 2021-45 - Provision of Financial Services................................................... 441

13.3            Completion of Financial Performance Review.................................................. 444

13.4            Certificate of Investment.................................................................................. 496


Council 16 December 2020

Item 13.1

 

13.1. Presentation of Financial Statements and Audit Report for the Year Ended 30 June 2020     

Council’s Financial Statements and Audit Report for the Year Ended 30 June 2020 are presented for the information of Councillors.

General Manager  

Officer’s Recommendation

That Council receive and note the FY2020 Audited Financial Statements and Report on the Conduct of the Audit and these be published on Council’s website and hard copies made available in Council’s libraries.

 

Executive Summary

Council’s FY2020 Financial Statements and Audit Report is presented for the information of Councillors.

Due to the COVID pandemic, this year an extension was granted to all NSW Local Councils to have their Financial Statements lodged by 30 November 2020 and the Annual Report lodged by 31 December 2020. Council have submitted the Audited Financial Statements to the Office of Local Government by the due date.

This was appreciated not only because of the unusual  circumstances that caused dramatic changes in our working environment, but also the significant body of work that was required for Bega Valley Shire Council to undertake a valuation of the impairment and damages to our assets as a result of the 2020 Black Summer Fires.

 

Background

The financial statements for the year ended 30 June 2020 have been completed and audited by the Audit Office of NSW (Deloitte).

On 21 September it was identified that an assessment of the impairment and damages on assets from the Black Summer 2020 bushfires was required for the Audit. This extended the timeframes documented in the Audit Engagement Plan. Given the lack of internal resources, Council engaged specialist valuers (Shepherds) to complete that assessment. This work took a number of weeks to complete and Council met the agreed timeframe to refer financial statements to the auditor on 9 November. An extraordinary meeting of ARIC was held with the NSW Audit Office and Deloitte representatives who provided a progress update on the Audit.

Council received the Audit Report from the Auditors on 30 November 2020 and lodged the statements to the Office of Local Government on that same day. 

This report provides a summary of the financial results. The Auditors are invited to make a presentation to Council on 16 December 2020 to provide comment on observations and answer questions.

 

Options

This report meets Council’s legislative obligations.

Community and Stakeholder Engagement

Engagement planned

Audited Financial Statements are one of the key points of accountability between Council and our community. By providing these documents to the public, Council demonstrates financial transparency.

Financial results determine Council’s ability to provide goods, services and facilities and to carry out activities appropriate to the current and future needs of the local community and of the wider public.

These Financial Statements will be added to the published 2019-2020 Annual Report and made available to the public on Council’s website and hard copies available at Council’s libraries.

 

Financial and Resource Considerations

The commentary below provides some items of note in the General Purpose Financial Statements (GPFS).

Operating Result

The operating result (after capital) is a surplus of $1.5 million. This result is better than the original budget of $6.9 million deficit. The major contributing factor for the actual versus expected is applying the change in accounting standards and finalisation of previous natural disaster payments.

Cash and Investments

Councils cash and investment balance has been impacted by a series of cash flow challenges. Internal restrictions held for the financial year ending 30 June 2020 were reduced by Council resolution on 7 October 2020.

The cash flow situation is the culmination of a number of factors, some temporary, and some as a result of ongoing General Fund deficits that have occurred over time. The following items are noted for the Statement of Cash Flows:

·    Council is owed $7.5 million in debtors for government grants and subsidies, relating to reimbursements for completed works. This temporary cash flow deficit is being funded from Council’s internal reserves.

·    Councils rates, annual charges and user charges debtors at 30 June 2020 have increased by $3.6 million. Contributing to this is the decision by Council to offer hardship relief for all ratepayers. Debt collection will be monitored and reported to Council over the coming months.

·    Council is still adapting to the additional costs and loss of income relating to its bushfire recovery, COVID and flood recovery works

Operating Results by Fund

The statements include a breakdown of the income statement and financial position for the General, Water and Sewer funds.

For the year ending 30 June 2020, the General Fund shows an operating deficit of $2.5 million dollars.


 

FY2020 Result

General (‘000) $

Water (‘000) $

Sewer (‘000) $

Net Operating Result

19,548

1,493

4,183

Net Operating result before Capital Grants & contributions

(2,549)

758

3,296

Financial Performance Ratios (Consolidated)

FY20 (‘000)

FY19 (‘000)

Benchmark

Operating Performance ratio

2.13%

(9.93%)

>0.00%

Own Source Revenue ratio

58.78%

66.82%

>60%

Unrestricted Cash Ratio

1.13x

0.64x

>1.5x

Debt Service Cover Ratio

5.33x

2.75x

>2.0

Rates outstanding percentage

5.96%

4.61%

<10% Rural

Cash expense cover ratio

12.14 months

12.22 months

>3 months

The key performance measures indicated in the table above shows that as a consolidated entity, Council has achieved a positive operating result.

·    Own source revenue is slightly lower than benchmark, as a result of the high rate of grants that Council has received.

·    The unrestricted ratio is a measure of Councils ability to pay its current liabilities. Since it deals with only unrestricted asset and liabilities, it is a General Fund performance measure. The result of 0.85 has improved since 2019.

·    The debt service ratio is a measure of Council’s ability to service its loans. If Council’s borrowing increases this ratio will decrease.

·    The cash expense cover ratio includes the restricted and unrestricted cash. Whilst the ratio is healthy it should be noted that the restricted cash is only available for the specific purpose it was collected for.

Statement of Performance Measures (Ratio) | General Fund

Benchmark

FY2020

Operating Performance ratio

>0.00%

-2.51

Own source operating revenue ratio

>60.00%

46.03%

Unrestricted current ratio

>1.50x

1.02x

Debt service cover ratio

>2.00x

3.78x

Rates, annual charges, interest and extra charges outstanding percentage

<10.00%

9.24%

Cash expense cover ratio

>3.00 months

12.14 months

 

Statement of Performance Measures (Ratio) | Water Fund

Benchmark

FY2020

Operating Performance ratio

>0.00%

5.64%

Own source operating revenue ratio

>60.00%

93.80%

Unrestricted current ratio

>1.50x

169.32x

Debt service cover ratio

>2.00x

Rates, annual charges, interest and extra charges outstanding percentage

<10.00%

0.00%

Cash expense cover ratio

>3.00 months

 

Statement of Performance Measures (Ratio) | Sewer Fund

Benchmark

FY2020

Operating Performance ratio

>0.00%

17.49%

Own source operating revenue ratio

>60.00%

94.88%

Unrestricted current ratio

>1.50x

85.12x

Debt service cover ratio

>2.00x

7.33x

Rates, annual charges, interest and extra charges outstanding percentage

<10.00%

0.00%

Cash expense cover ratio

>3.00 months

 

The (unaudited) Infrastructure report provides additional KPI’s regarding Council performance in the management of community infrastructure. Below is a summary of the performance against the benchmarks, both consolidated and by Fund. 

Report on Infrastructure Assets (Ratio) | Consolidated

Benchmark

FY2020

Buildings and infrastructure renewals ratio

>=100.00%

107.32%

Infrastructure backlog ratio

<2.00%

2.79%

Asset maintenance ratio

>100.00%

98.10%

Cost to bring assets to agreed service level

NA

1.89%

 

Report on Infrastructure Assets (Ratio) | General Fund

Benchmark

FY2020

Buildings and infrastructure renewals ratio

>=100.00%

143.67%

Infrastructure backlog ratio

<2.00%

4.04%

Asset maintenance ratio

>100.00%

93.76%

Cost to bring assets to agreed service level

NA

3.01%

 


 

 

Report on Infrastructure Assets (Ratio) | Water Fund

Benchmark

FY2020

Buildings and infrastructure renewals ratio

>=100.00%

21.30%

Infrastructure backlog ratio

<2.00%

0.00%

Asset maintenance ratio

>100.00%

107.11%

Cost to bring assets to agreed service level

NA

0.00%

 

Report on Infrastructure Assets (Ratio) | Sewer Fund

Benchmark

FY2020

Buildings and infrastructure renewals ratio

>=100.00%

37.58%

Infrastructure backlog ratio

<2.00%

0.00%

Asset maintenance ratio

>100.00%

102.66%

Cost to bring assets to agreed service level

NA

8.00%

 

Financial Performance and Position

FY2020 Result

(‘000) $

Original Budget

2020 Actual

2019

Total Assets

1,170,686

1,245,318

1,077,047

Total Liabilities

51,345

69,520

55,097

Net Assets

1,119,340

1,175,798

1,021,950

Total Equity

1,119,340

1,175,798

1,021,950

Budget Information

Preparation of this report, the execution of the external audit and the additional support required to have the Financial Statements audited has been undertaken within the Financial Services Administration - General Fund operational budget.

 Legal /Policy

The Office of Local Government advised, in circular 20-15 on 1 May 2020, the following: The time for the preparation and publishing of 2019-20 annual reports has been extended until 31 December 2020. The annual reporting requirements for 2020-21 will continue as usual, with 2020-21 annual reports due to be published by 30 November 2021

Section 413 of the Local Government Act requires a resolution of Council to refer the draft financial statements to audit. This was completed on 7 October 2020. 

Section 413 (2c) requires a resolution of Council that the annual financial statements have been prepared in accordance with:

·    The Local Government Act 1993 (as amended) and the Regulations made there under

·    The Australian Accounting Standard and professional pronouncements,

·    The Local Government Code of Accounting Practice and Financial Reporting.

and that, to the best of their knowledge and belief, the financial statements present fairly the operating result and financial position, and accord with Council’s accounting and other records.

Section 418 of the Act requires that as soon as practicable after Council receives a copy of the auditor’s report, it must fix a date for a meeting to present the audited financial statements to the public, and it must make the financial statements available for public inspection for at least seven days prior to the meeting date.

 

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

CSP - 6: Strong, Consultative Leadership

DP - 6.11: We are an informed and engaged community with a transparent, consultative and responsive Council

OP - 6.12.5: Improve the provision of corporate financial services

Environment and Climate Change

The audited financial results at 30 June 2020 provide information needed to determine Councils financial sustainability by using the results to calculate the financial sustainability ratios. The benchmarks being defined in the “OLG’s performance indicators from the audited financial statement”

Economic

Council is a major contributor to the local and regional economy. Assessment of financial performance is a key input of decision making, with the goal to ensuring a financially responsible and effective organisation. As well, an opportunity to assess actual performance against strategic plans, highlighting any challenges and unexpected events that may impact the final results.

Risk

Presentation of the financial statements to Council does not have any risk impacts in itself. The information in the reports assist with analysis of the performance of Council providing opportunity for organisational risks to be identified and captured in accordance with our Enterprise Risk Management Framework. Included as a control of managing corporate risk is the function of the Audit, Risk and Improvement Committee and the annual external audit process.

Social / Cultural

Reporting of financial performance in a timely manner that meets legislative requirements, builds confidence in the management and leadership of the Council. Benchmarking against similar Councils (Category 4) allows for context in the local government environment.

Financial decisions impact the social and cultural aspects of Council’s operations in the community. The Financial Statements provide an annual summary of the impact of those decisions at a point in time; that being, the end of financial year (30 June 2020) and inform future direction.

 

Attachments

1.         Bega Valley Shire Council Annual Financial Statements - FY2020

 


Council

16 December 2020

Item 13.1 - Attachment 1

Bega Valley Shire Council Annual Financial Statements - FY2020

 

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Council 16 December 2020

Item 13.2

 

13.2. RFT 2021-45 - Provision of Financial Services     

This report details the evaluation outcome of Request for Tender for the proposed Provision of Financial Services.

Director Business & Governance  

Officer’s Recommendation

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

2.    That Council accept the tender for RFT 2021-45 Provision of Financial Services 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

The tender for Financial Services was conducted to ensure that Council has the correct mix of products available to achieve greatest value for ratepayers. The request for tender includes banking and bill paying services for Council.

Background

Council identified in its operational plan the need to improve online payment options for our customers. When scoping this project it was identified that to progress an online payment feature we would need to ensure that we had the correct banking platform to support this initiative.

This tender allows Council to access the market and ensure that our banking services support the need to improve the online payment options and that we are getting this service at the best price available.

Options

Prior to progressing to Tender, Council made an assessment of the services provided by its current provider. The feedback from staff was that overall there was:

·    No engagement or regular updates from the provider in new products,

·    No regular meetings with the provider to discuss issues and improvements,

·    Delays and inadequate response to issues in relation to day to day support for customer requests.

Council’s options are to do nothing or, test the market to ensure we receive the required level of service from a provider that values the banking relationship.

Community and Stakeholder Engagement

 

Engagement undertaken

This project is aligned at the ‘involve’ level of engagement. Council has referred to information received from broad community engagement undertaken previously which identified the need for improvement in online payment options being made available.

Engagement planned

Once services have been confirmed and implemented, Council will use various communication tools to promote online payment options.

 

Financial and Resource Considerations

Council’s approved budget for provision of banking and payment services is $191,000. This budget is based on current use of services. Council has invested in this tender process to ensure that we can improve online payment options for the community. The initial costing report from the tender is positive in delivering a saving to Councils. This saving would then be used to fund any additional banking costs relating to improvement in banking services for the community.

Legal /Policy

Local Government Tendering excludes banking but the decision to run a formal tender is based on advice and experience that the process delivers better results and provides a formal assessment of a very important supplier relationship.

 

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

This tender supports the improvement to online payment options that is identified in Councils Operational Plan

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

6.12.5.3      Implement online payments project

 

Environment and Climate Change

There are no environment or climate change impacts as a result of the banking tender or review of banking services.

Economic

Council has assessed all tenderers on their Corporate Social Responsibility, an important part of this is availability of branches in the Bega Valley.

Risk

Council has identified the Risks associated with the transition to a new provider and have ensured tenders included a proposed implementation plan.

Social / Cultural

Improved banking services will have significant positive social impacts through provision of online payment options for the community.

 

Attachments

1.            Councillor Memo RFT 2021-45 Provision of Financial Services (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 16 December 2020

Item 13.3

 

13.3. Completion of Financial Performance Review       

 

Cr Fitzpatrick  

Officer’s Recommendation

That Council: 1. Receive and note the Finance Performance Review Report from Morrison Low dated December 2020,

2.    Note the scope of the project is summarised in Section 1 and 2 of the report,

3.    Receive and note recommendations 1-11 contained in Section 10 of the report,

4.    Receive a further report to the February Finance briefing session with Councillors recommending a timeframe for actioning the recommendations contained in the report,

5.    Implement recommendation 8 of the report regarding internally restricted reserves and these be consolidated as contained in Table 3 of the report,

6.    Implement recommendation 9 of the report, referring to ‘fifteen (15) dot points contained in Section 8 - Grant Procedure Review in Council’s Grants Management Processes and Procedures document’, and

7.    Support additional resourcing for the finance department to continue implementing the financial improvement plan, including the implementation of any recommendations contained in Section 10 of the report that are to be actioned.

 

Background

Council resolved on 26 August 2020 (resolution number 193/20) to commission a baseline review of financial performance for the years 2016, 2017, 2018 and 2019 as follows:

That Council

1.    Note the current iteration of the Long Term Financial Plan 2021-2030

2.    Update the adopted Operational Plan 2020-2021 to include the revised cash flow projections in the attached Long Term Financial Plan 2021-2030 as per resolution 150/20 Item 2 and;

3.    That Council resolve to commence as soon as possible, a baseline audit for the 2016, 2017, 2018 and 2019 financial years.

4.    That on the completion of the baseline review, those figures are used as the starting point for the Long Term Financial Plan.

5.    That the funding for this be taken from the General Managers legal and investigations fund.

The Mayor, Director Business and Governance and two independent members of the Audit, Risk and Improvement Committee constituted the panel which completed the evaluation of request for quotes and engaged an external consultancy to undertake a baseline review on Council’s financial performance for the period 2016-2019. As Mayor along with the ARIC members I met with the consultants engaged on three occasions throughout the process. The report has been received and is now presented to Council.

The approach of the consultancy was as follows:

“… to undertake a comparative baseline assessment of the performance results for the four years against Council’s LTFP and strategy. This enabled an integrated assessment of the operating results, the related cashflow implications in terms of use of funds for capital expenditure and the allocational transfer to and from reserves, and the changes in the Office of Local Government NSW (OLG) performance indicators over the four years…

A position paper was provided to assess a previous grant administration practices, namely the Natural Disaster Grant, from which we will detail our observations. Further a review of the improved grants management processes and procedures will be undertaken providing observations and suggested enhancements.”

The report contains the following key items that were reviewed:

·    Budget to actuals comparison format and approach

·    Cash and investments (reserves)

·    Ratio comparisons

·    Group 4 council comparison       

·    Observations of income statement movements

·    Grant procedure review

·    Process improvements

On completion of the review, a summary has been prepared with 11 recommendations. These are as follows:

1.    It is recommended that QBRs detail works and/or projects affected by transfers to/from reserves and the individual reserve affected is identified.

2.    It is recommended that a report containing a full list of reserves detailing the opening balance as at 1 July, original budgeted transfer amount, updated budgeted transfer amount, actual transferred amount, and closing balance as at 30 June, is provided to Council on a monthly basis with the Investment and Bank Reconciliation Report.

3.    It is recommended that a full list of projects that have funding sources consisting of reserves, grants, loans or a combination of the same detail budget, funding source, funding source amount used/drawn down to date, expenditure to date, expected expenditure to completion and expected completion date of the project be reported to Council on a quarterly basis.

4.    It is recommended that works be identified for funds held in each reserve. Where excess unrestricted funds are held these be transferred to the employees’ leave entitlement reserve. (This reserve has 21.64% of the liability covered, which may not be adequate.)

5.    It is recommended that the amount of the employees’ leave entitlement reserve is based on a formula calculated by reference to age brackets and total leave accruals with each fund (General, Water, Sewer and Waste) contributing to employees of that fund.

6.    It is recommended that any externally restricted reserve currently held by Council, or intended to be set-up in the future, is subject to external restrictions in their purpose. These reserves are cash backed, with the following criteria applying to externally restricted reserves:

a.    The reserve is subject to legal requirements that govern the use of the funds.

b.    A reserve will be established for any value if there is a legal requirement or a requirement under Australian Accounting Standards.

c.     Transfer of funds are restricted by the individual funding agreements. Council must authorise transfers by Council resolution.

d.    The reserve includes funds that have not been utilised for the purpose for which they were received, and an obligation or requirement to return funds to the contributor exist.

e.    All reserves must be fully cash backed.

7.    It is recommended that any internally restricted reserve currently held by Council, or intended to be set-up in the future, is established by a Council resolution to ensure that sufficient funds are available when required for a specific purpose. These reserves are cash backed with the following criteria applying to internally restricted reserves:

a.    The reserve is not subject to legal requirements that govern the use of the funds.

b.    The establishment of a new reserve must be for a specific internal purpose authorised by a Council resolution and shall not be established for an amount less than $50,000.

c.     Transfer of funds are restricted by the internal purpose of the reserve. All transfers must be authorised by Council resolution.

d.    The reserve has been established for a specific internal purpose, however, if that purpose does not eventuate or Council changes its priorities the funding can be diverted to other purposes, by Council resolution.

e.    All reserves must be fully cash backed.

8.    It is recommended that existing internally restricted reserves be discontinued or amalgamated into those contained in Table 3.

9.    It is recommended that consideration be given to including the fifteen (15) dot points contained in section 8 - Grant Procedure Review in Council’s Grants Management Processes and Procedures document.

10. It is recommended that monthly accruals of financial transactions, within four business days of months end, be implemented for interest on investments, administration overheads, on-costs, depreciation, capitalisation of assets purchased/sold, plant income/expenses and reserve movements.

11. It is recommended that monthly financial reporting be implemented at the income statement level.

As indicated in the resolution, the purpose of the Baseline Review is for the outcomes to be a key input into the next iteration of the Long Term Financial Plan (LTFP), including observations on reserve management, grants management and cash flow reporting.

The Finance Team have had a structured approach to the Financial Improvement Program since March 2020. Whilst the Financial Improvement Plan, linked to the General Manager’s performance targets, was outlined in 2019 and work commenced it was not until the appointment of the new Director Business and Governance that clear focus was dedicated to the project.

Progress has been reported at monthly briefing sessions with Councillors since July. The baseline review notes an improvement in financial reporting since the period covered by the review and it is acknowledged that continued investment to resource the team to implement these recommendations will be required in the medium term.

As Mayor since September this year and as a Councillor since 2009 I am aware of the constantly changing and challenging world local government operates in. Our financial reporting and presentation has changed a number of times since I have been a Councillor and we have not always got it right. The clear direction of Council is to work through this improvement plan and support staff to ensure we get it right. Changes in staff in the finance area over the past four years has been considerable and as a critical area we need to ensure we are adequately resourced to ensure we budget and report appropriately and in particular we improve the management of the integration of our assets and financials.

We can now move to present an improved, updated long term financial plan, resolve an improved position on our reserve management and develop a more sophisticated and integrated cash flow reporting system.

There is still work to do and a clear focus for Council to ensure continual improvement in this area.

 

Attachments

1.         Morrison Low Report - Bega Valley Shire Council - Finance Performance Review Report to Mayor

2.         Appendix 1 - 2016 to 2019 Comparison Data   Click Here for PDF Version

3.         Appendix 1 - Reserve Movements

4.         Appendix 1 - Ratio Comparisons

5.         Appendix 1 - Group 4 Council Comparison

6.         Appendix 1 - Income Statement Comparison Table

7.         Appendix 1 - Compiled Data

 


Council

16 December 2020

Item 13.3 - Attachment 1

Morrison Low Report - Bega Valley Shire Council - Finance Performance Review Report to Mayor

 

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