Agenda of Council - 27 January 2021

Council 27 January 2021

Item 11.1

11.1. RFT 2021 – 61 Plumb Motors Carpark upgrade

This report details the outcome of RFT 2021-61, Plumb Motors Carpark Upgrade.

Director Assets and Operations

Officer’s Recommendation

That Council accept the recommendation outlined in the Confidential attachment.

2. That Council accept the tender for RFT 2021-61, Plumb Motors Carpark 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 2021-61 Plumb Motors Carpark Upgrade, the aim of the project is to construct a carparking facility on the site that was previously Plumb Motors. This project is 100% funded through the Local Roads and Community Infrastructure grant program.

Background

Council resolved at its meeting on 16 December 2015 in Closed Session to purchase the Plumb Motors site in Auckland Street Bega for the purpose of a future public car park site, settlement on 77-79 Auckland Street Bega (Plumb Motors site) took place on 1 April 2016.

Council at its meeting on 22 July 2020 resolved that the Council accept the funding of $1,221,983 under the Local Roads and Community Infrastructure Program and the funding to deliver Tathra Kiosk upgrade, Berrambool Footbridge upgrade and sealing of Plumb Motors car park.

The Funding Deeds for the Local Roads and Community Infrastructure Grant have been finalised with the projects needing to be complete by 30 June 2021 to adhere to the funding deed conditions.

The new carpark will provide 51 car spaces, including four accessible spaces; the majority of which will be serviced by a central footpath linking onto Auckland Street and Bega Recreation Ground.

A revegetation plan for the central path and the western boundary will involve the planting of nine semi-established trees and some native shrub vegetation.

The new carpark can also be used for overflow parking for large sporting events at the sportsground next door.

Tender

RFT 2021-61 Plumb Motors Carpark Upgrade was released for public tender via Vendor Panel on the 16 November 2020. The RFT closed 9 December 2020, the documents were viewed by 84 contractors, 6 representatives attended the mandatory site meeting with submissions received from the following;

· RD Miller Pty Ltd

· John Michelin & Sons Pty Ltd

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

Options

Several options for the carparking arrangement were considered during the design phase and the tendered design provided a balance between provision of maximizing car parking spaces, the provision of accessible space as well as the provision of green space and general aesthetics and pedestrian connectivity into the Bega Recreational Ground from Auckland Street and the Central Business District (CBD).

Community and Stakeholder Engagement

Engagement undertaken

Council staff have consulted with both the Bega Chamber of Commerce and the Accessibility and Inclusion Committee on the plans for the carpark.

The design has also taken into consideration the approved masterplan of the Bega Sports complex and a future pedestrian connection from Auckland Street in the complex.

The overview of the carpark design was released publicly via BVSC electronic and social media channels notifying the public of the upcoming works and generally the comments and feedback were positive in nature.

Engagement planned

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

Financial and Resource Considerations

The table below provides details of the project budget and funding sources associate with the project:

Item	$ Excl GST
Expenditure Detail
Construction of Carparking facility	Confidential
Total Expenditure	Refer to Confidential Memo

Source of Funds
Grant Funded – Local Roads and Community infrastructure	$621,930.00
Total income available	$621,930.00

Total Project Capital Cost	Confidential
Total Available Construction Funding	$621,930.00
Project Funding Shortfall	Confidential (the expected expenditure is within the available project funding)

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts	$ Excl GST
Capital Investment \| New	$621,930
Annual maintenance and operational costs	$586.45
Depreciation costs	$9,933.93/year
User charges (annual income)	Nil

Legal /Policy

The tender process complied with the Local Government Act 1993.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

This project aligns with the Council resolution in regard to the purpose of the acquisition of the site for a public car park.

The Plumb Motors Carpark Upgrade will service the businesses within the CBD of Bega redirecting traffic and parking from the main street.

The design has also taken into consideration the approved masterplan of the Bega Sports complex and a future pedestrian connection from Auckland Street in the complex.

Environment and Climate Change

It has been identified that stormwater currently leaves the site and enters a neighbouring property, in high flow events this stormwater could result in damaging the neighbouring property or infrastructure.

The new carpark design redirects the stormwater away from the boundaries of the property and directs it into a new stormwater pipe system in the centre of the carpark which then ties into an existing stormwater system within the rec grounds.

As part of the project a revegetation plan for the central path and the western boundary will involve the planting of nine semi-established trees and some native shrub vegetation.

Economic

Both the contractors who supplied responses to the RFT are local contractors, by awarding this contract it will stimulate the local economy by a local contractor and sub-contractors benefiting from the grant funding.

Through the working week the new carpark facility aims to provide parking for employees of businesses located within Bega’s CBD.

Risk

If Council does not proceed with the recommendation in the confidential report and progress with construction of the carpark within the grant funding time frame, council currently would not be able to fund the project internally.

Social / Cultural

The new carpark facility at the Plumb Motors site adjoins the Bega recreational grounds with the design taking into consideration pedestrian movements between the facilities. This is so that the carpark can be utilised as overflow parking for when large events are occurring with a gate and path connecting the facilities. This will provide more parking in close proximity to sporting venues over the weekends should it be needed, benefitting local sporting clubs and providing spectator convenience.

Attachments

1 . Confidential attachment to Council Report RFT 2021-61 Plumb Motors Carpark 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 27 January 2021

Item 11.3

11.3. Redistribution of toilet block and playground - Tathra

The purpose of this report is to recommend Council dispose of a toilet block and playground in Tathra to offset construction of a new toilet block in Cobargo and Playground in Kalaru.

Director Assets and Operations

Officer’s Recommendation

It is recommended that:

1. Council dispose of the toilet block and playground and Chaz Izzards Park in Tathra to offset construction of a toilet block in Apex Park Cobargo and Playground at Evans Park in Kalaru

2. Council return Chaz Izzards Park to maintained planted and open grassed space for use by the public

3. Council provide information to the public explaining the need to rationalise assets to offset new assets

Executive Summary

Council recently considered a report that supported construction of a new toilet block at Apex Park Cobargo with the toilet block to replace a toilet block somewhere else in the Shire. Staff were requested to bring a report to Council with a suitable location to offset the new toilet block.

Similarly, Council had previously resolved to provide in principle support to a new playground in Kalaru at Evans Park provided a suitable location to remove a playground elsewhere could be found.

This business paper includes two further separate reports that are inter-related to this report. The first on the Local Roads and Community Infrastructure Program with an identified funding source for the new toilet block in Cobargo and the second relating to a grant the Evans Park site committee have received for a playground at Kalaru.

Background

One of the challenges Council is faced with is balancing providing services and infrastructure with community need and desire. There is a mixture of the quantity and quality of different services provided across the Shire including significant infrastructure particularly in the amenities and recreation and leisure area. This includes playground and public toilet facilities across the Shire.

Recently Council made the decision that there is need for additional public toilet facilities in Cobargo and a playground facility in Kalaru with the relevant resolutions as follows:

At the 16 December 2020 Council meeting Council resolved:

1. That Council note the costs associated with an additional toilet block in Cobargo as outlined in this report.

2. That Council seek funding for the construction of a toilet block at Apex Park in Cobargo

3. That Council staff identify public toilet closures to offset the ongoing costs of the toilet block at Apex Park in Cobargo and provide this information in a further report to Council.

At the 11 November 2020 Council meeting Councillor Allen moved a two 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.

At the 26 August 2020 Council meeting Council resolved:

9. That Council provide in principle support to the Evans Park Sporting Complex Committee to secure funding to develop a Masterplan for the Evans Park site and that staff undertake a review of nearby playgrounds to determine a suitable playground for removal to offset potential future construction of a new playground at Kalaru.

Council has also consistently identified its financial limitations in being able to continually build new infrastructure and assets and fund their ongoing lifecycle costs. This is particularly true for high lifecycle cost assets such as toilet facilities and playgrounds which require relatively high levels of maintenance compared to other asset classes.

In considering where to look for suitable locations to dispose of existing assets to offset new assets elsewhere there were several key factors considered. These factors include where there is already relatively high quality and quantity of facilities provided as well as proximity to other facilities. From a high-level assessment, it is obvious that Tathra has a relatively high (compared to other parts of the Shire) volume of toilet facilities and playgrounds, with several in close proximity to each other.

When considering the spread, remaining useful life and utilisation of facilities within Tathra it was identified that the facilities at Chaz Izzards Park have relatively low utilisation and are nearing the end of their useful life.

Given the recent construction of the Tathra to Kalaru bike path, that will most likely be utilised by residents and visitors of Tathra as well as Kalaru it also makes sense to look to rationalise a playground within Tathra if a playground is to be built in Kalaru.

The diagram below presents the location of Chaz Izzards Park relative to other public playground facilities within Tathra:

Options

There are several options available to Council with some of the key high level ones as follows:

- Endorse the recommendations in this report

- Build the new assets proposed without rationalising any other assets noting the negative financial impacts of this option

- Not build the new assets and not rationalise the assets as recommended

- Consider rationalising other assets within the Shire to offset construction of the proposed new assets

Should Council support the decision to rationalise the toilet block and playground at Chaz Izzards Park there are options as to what occurs in future at the site. It is recommended that the site be returned to publicly useable open/planted space, however a further option to be considered may be a fenced off leash dog area.

Community and Stakeholder Engagement

There has been no community engagement to date on the proposal to rationalise the playground and toilet block as proposed.

Engagement undertaken

There has been previous engagement undertaken with the Evans Park site committee in relation to the proposed new playground and highlighting that Councils support was conditional upon rationalising a playground elsewhere in the Shire.

During the consultation process on the new playground in Cobargo there was desire expressed within the community to incorporate at least a single unisex accessible toilet within the upgraded playground. It had originally been proposed to undertake community consultation on a preferred location for a toilet block to be rebuilt within Cobargo (post the summer 2020 fires), however Council resolved to rebuild the toilet block in its former location and subsequently resolved to support a new additional toilet block in Cobargo at Apex Park.

Engagement planned

It is proposed that should Council support rationalisation of the Chaz Izzards Playground and Toilet Block that the community would be informed of this decision with the justification behind why explained. It would also be explained that there is an opportunity to “tidy up” and do some beautification works should a grant be submitted and successful under the Local Roads and Community Infrastructure Program.

It is anticipated that there will be some negative community response as a result of taking away a toilet block and playground in one location to offset new facilities elsewhere and this would likely be the case irrespective of what assets were being considered or which locations were considered for rationalisation.

Financial and Resource Considerations

As has been discussed above, building any new assets with a relatively high whole of life cost will have negative impacts on Councils overall financial position unless corresponding cost savings are made elsewhere.

As has been identified previously in this report there are two other separate reports that relate to this report, one incorporating the proposed toilet block in Cobargo and the other, the playground in Kalaru.

As identified in the other two reports referred to above it is proposed that the cost of removing the toilet block and playground and tidy up works at Chaz Izzards Park be covered by the Local Roads and Community Infrastructure Program.

It is also proposed that the capital cost of the new toilet block be covered by the Local Roads and Community Infrastructure Program and the playground at Evans Park, Kalaru be capital funded by the grant the Evans Park site committee has been offered.

It is estimated that the whole of life cost of the new playground at Kalaru and Toilet Block at Cobargo would be equivalent to the whole of life cost of the facilities at Chaz Izzards Park.

In a report to the December 2020 Council meeting information on the whole of life cost associated with a toilet block was provided and is copied below:

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.

As outlined in the report on the Evans Park Playground in this business paper the estimated maintenance costs of the playground are $1050 per annum and depreciation of $2000 per annum assuming a 20 year useful life.

Legal /Policy

Chaz Izzards Park is Council Managed Community Land covered by the generic plan of management as community land/park. There is nothing preventing Council from moving forward as recommended.

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.

Council also has a Public Toilet Strategy that refers to the need to provide sustainable and fit for purpose services. This report also aligns with the objectives of Councils Recreation Asset Management Plan.

Environment and Climate Change

There are limited Environment and Climate Change impacts associated with this report, noting it is recommended Chaz Izzards Park be retained as open/planted public space. A result of this report would be limiting increased impact of built infrastructure.

Economic

There are limited economic impacts of this report other than aiming to ensure a balance of facilities across the Shire to provide suitable facilities for tourists.

Risk

There is a risk that there will be significant community backlash associated with removal of a toilet block and playground at Chaz Izzard Park. There is also a financial risk of Council does not rationalise existing assets whilst continuing to build new assets.

Social / Cultural

The intent of this report is to try and balance provision of services and facilities equitably across the Shire.

Attachments

Nil

Council 27 January 2021

Item 11.4

11.4. Evans Park Kalaru Playground - Grant Funding and Masterplan

The Evans Park Committee has been successful with a grant funding application to install play equipment at Evans Park Kalaru. This report provides background on the Community Project Proposal, the development of a masterplan for the site and how it relates to the provision and location of playgrounds in the Tathra – Kalaru area.

Director Assets and Operations

Officer’s Recommendation

That:

1. Council support the development of a new playground at Kalaru and through applying an asset management approach play equipment in Tathra be rationalised.

2. Council endorse the proposed playground site to enable the Evans Park Committee to progress with their project.

3. Council continue to work through other elements to finalise a masterplan for Evans Park Kalaru.

Executive Summary

On 1 June 2020 Council received a Community Project Proposal from the Evans Park Committee: Playground Equipment Evans Park. It is a modest playground project including supply and installation of a 2-bay swing set, a single rocker, soft-fall and access paths. The proposal from the Evans Park Committee requested a letter of in principle support from Council to enable the Committee to submit a grant funding application to the 2020 Community Building Partnership Grants Program (applications closed on 12 June 2020). As the next Community Project Proposal report to Council was scheduled to Council for August 2020, and there is a known lack of provision of play equipment in the developing Kalaru area, staff provided the letter of support requested. The Evans Park Committee have recently been notified their funding application has been successful. The funding amount is $28,705.

Background

Over recent years Council has considered several reports related to Evans Park Kalaru. The 24 February 2016 report 9.2 Evans Park Kalaru provided a background to that point. Council resolved:

That Council encourage the Evans Park Committee and community to identify priority projects and submit these for future consideration through the Council’s Community Project Proposal Procedure process.

A number of project proposals have been submitted and processed since that report including construction of the amenities building (supported and completed) BMX track (supported) and installation of cricket nets. (not supported). The play equipment is the fourth element proposed.

At the Council meeting on 26 August 2020 Council considered the report 11.4. Community Project Proposals which included the Community Project Proposal from the Evans Park Kalaru Committee: Playground Equipment Evans Park. In regard to the Evans Park Project Council resolved:

That Council provide in principle support to the Evans Park Sporting Complex Committee to secure funding to develop a Masterplan for the Evans Park site and that staff undertake a review of nearby playgrounds to determine a suitable playground for removal to offset potential future construction of a new playground at Kalaru.

Kalaru has grown considerably over the past ten years and continues to grow as residential blocks are developed. There are limited local parks and recreation facilities in the area and there is a need for provision of local facilities to service the Kalaru community.

In line with the 26 August 2020 Council resolution, preliminary proposals on a masterplan have been provided by the Evans Park Committee. There is still some review and development of the masterplan to be done with the Evans Park Committee prior to it being reported to Council for consideration. The suggested area proposed for the playground (on the west of the site north of the toilets) is a good site for a playground. It is relatively close to the toilets while also being separated from the road and possible future parking areas nearer the site entrance. There is also space nearby to add some additional items or equipment to support a development of a ‘local’ playground (to a similar scale to recent rural village upgrade projects).

Options

There are several options available to Council including:

• Council defer a decision on the location of a playground (and the playground project) until the site masterplan is completed.

• Council endorse the proposed playground site to enable the Evans Park Committee to progress with their project while continuing to work through other elements to finalise a masterplan for the site; and based on information in this report and separate report to this Council meeting, Council determine to remove Chaz Izzards playground in Tathra and inform the community of the reasons and outcome.

· Council endorse the proposed playground site to enable the Evans Park Committee to progress with their project while continuing to work through other elements to finalise a masterplan for the site; and continue with the review of nearby playgrounds to include feedback from the community to determine a suitable playground for removal to offset the construction of a new playground at Kalaru.

• Council retain the status quo and determine to not support development a new playground at Kalaru.

• Council support the development of a new playground at Kalaru and retain all existing playgrounds which will continue to add to Council’s asset inventory and future maintenance and deprecation costs.

Community and Stakeholder Engagement

Engagement undertaken

There has been communication with the Evans Park committee regarding their Community Building Partnership application and response to their Community Project Proposal. There has NOT been consultation with the community regarding the possible rationalisation of play equipment in Tathra.

Engagement planned

If resolved by Council staff will develop a package of information providing an overview of the asset management challenge faced by Council, how it relates to this project to provide to the community. If directed this will include a request for feedback with the outcome to be reported to Council.

A separate report on the proposal to dispose of the toilet block and playground at Chaz Izzards Park has been included in a separate report in this business paper.

Financial and Resource Considerations

A typical ‘local’ playground project budget has been in the order of $90k – $110k (of which equipment is approx. %30 - 40%) The Evans Park Committee is a modest playground project.

Item	$ Inc GST
Expenditure Detail
Play Equipment Install, paths and Softfall	$28,205
Certification	$500

Total Expenditure	$28,705.

Source of Funds
<approved budget\|revenue funded>	0
Community Building Partnership Sourced by Evans Park Committee	$28,705
<reserve funds\|name of reserve	0
Total income available	$28,705

Total Project Capital Cost	$28,705
Total Available Construction Funding	$28,705
Project Funding Shortfall	0

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts	$ Excl GST
New (	$28,705
Annual maintenance and operational costs	$1050
Depreciation costs (Typical local area play equipment $40k @ 20yr asset life.)	$2000
User charges (annual income)	Nil

Legal /Policy

The site is Council owned Community Land. Property details are: Lot: 6 DP: 778154, 448 Tathra Road KALARU

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

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).

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.

The continuing residential development of the Kalaru area is identified in the Bega Valley Shire Council Residential Land Strategy.

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 inventory to low population ratio across a large area. The continuing residential development of the Kalaru area is identified in the Bega Valley Shire Council Residential Land Strategy.

Asset management is, and will continue to be, an ongoing issue for Council servicing the large area of the Shire. Location and provision of facilities is important and inevitably there needs to be consideration given to changing demographic areas, needs of local communities and balance and equity in access to assets across the shire. The continuing residential development of the Kalaru area is identified in the Bega Valley Shire Council Residential Land Strategy.

Some assets and facilities across the Shire were established some time ago, and there were reasons for those projects at the time. Some of these would behave been developed as single site with little consideration of other similar facilities. As the demographics of the Shire change, so to do community needs in provision of facilities.

Review of Nearby Playgrounds

The community ‘need’ for facilities also relates to renewal and upgrades of other assets nearby and, in turn, what is a reasonable distance between facilities. The previous Council resolution that staff undertake a review of nearby playgrounds to determine a suitable playground for removal to offset potential future construction of a new playground at Kalaru reflects the need to consider provision based on changing demographics and needs. There are provision measures (service levels) that can be developed relating to population, distance and demographics that will assist the Council in making these decisions moving forwards.

The growing community and changing demographics at Kalaru; and high provision of playgrounds in the neighbouring town at Tathra are a practical demonstration of the challenges faced and the need for Council to manage changing needs and asset provision moving forward. There is not a “want” to rationalise a playground; but rather “the need” to see a balanced approach in the best locations for fair provision of facilities across the Shire.

Tathra is approximately 5 km to the east of Kalaru. Tathra – Kalaru and District are identified as a profile area in the Bega Valley Shire Council Residential Land Strategy.

There are six public playgrounds in Tathra servicing the area from Mogareeka to Lawrence Park. There have been two recent projects being the major upgrade at the Lot Stafford Playground and also the renewal at Lions Park Mogareeka (renewal in lieu of the Ray Whyman Reserve Playground flood damaged in 2016). By comparison to other towns and villages Tathra has a high provision of public playgrounds, and reducing the number is not unreasonable. Locations are shown in image 1 below.

Chaz Izzard Park is a small local park off Panorama Drive in Tathra. It is approximately 600m to Taylors Square parkland area which includes the recently upgraded Lot Stafford Inclusive Playspace. Equipment from the recent Lot Stafford Playground was reused at Chaz Izzard Park. There is also a public toilet toward the rear of Chaz Izzards park which services the playground. (Tathra also has a high provision of public toilets.)

Noting the recent upgrades to playgrounds nearby, Chaz Izzards Park Playground can be considered surplus to community needs. It is estimated that it has a remaining useful life of 2 – 4 years. It is recommended that Council inform the community of its intent to dispose of the playground at Chaz Izzards Park to enable development of a new playground at Evans Park Kalaru.

Image 1: Tathra Playground Locations

It is also noted that Bega also has relatively high playground provision (six) with five of those being close (approx. 600m) to another playground nearby. The consideration of these as a collective group and some possible consolidation will be worth consideration as projects for their renewal are developed.

Environment and Climate Change

There is no risk to the environment or ecological matters as the site has been cleared. In time it is likely further planting will occur in the area like that around the completed public amenities.

Economic

Local contractors will be engaged in the works. While some regional playspaces can be beneficial to tourism this report is largely related local play equipment servicing local communities.

Risk

The risks to Council come in the ongoing asset management challenge and keeping up with demographic change. If new assets are developed without consideration of ongoing operations, maintenance and depreciation costs it will become increasingly difficult to maintain service levels with current resources.

There is risk that there will be perceived, and actual, inequity in provision of assets across communities. While it is reasonable to see provision levels related to population and levels of use translate to lower provision in smaller villages, it is also reasonable for provision to be balanced to meet changing demographic needs and on-going asset management sustainability.

It is possible the community will not see the future closure or removal of a play equipment in Tathra favourably, despite there being a high provision in the area and a modern inclusive playspace nearby. There is a risk that community consultation will not deliver a clear outcome that will aid Councillors in decision making.

It is understood that the Evans Park project is a simple swing set and spring rocker and is relatively low cost. However, it is a very good example of the asset management challenge facing Council and the need to consider transfer of an asset location to an area of known greater need; all be it noted that it is a difficult decision and there is a risk that some people will not be pleased with the outcome.

Managing the risks above related to asset management and asset provision are directly reflected in the Delivery Program 2017 – 2021 Goal 12: Our Council is financially sustainable, and services and facilities meet community need.

Social / Cultural

Playgrounds can provide significant benefits to the local communities particularly physical activity for kids and social interaction for carers. It is important to consider reasonable access to these benefits through location and provision.

Attachments

Nil

Council 27 January 2021

Item 11.5

11.5. Local Roads and Community Infrastructure Program and Building Better Regions Funding

This report recommends that Council accept grant funding awarded by the Australian Government through Phase two of the Local Roads and Community Infrastructure Program and provide in-principle support to prepare an application for the Bega War Memorial Pool Renewal and Upgrade for submission to Building Better Regional Fund Round 5 Infrastructure Stream.

Director Assets and Operations

Officer’s Recommendation

That Council:

1. Accept grant funds of $1,720,920 awarded under Phase 2 of the Local Roads and Community Infrastructure Program

2. Allocate Local Roads and Community Infrastructure Program funding to deliver Apex park Cobargo toilet block and demolition works in Tathra, Dickinson Oval Bermagui fencing replacement, Towamba Oval fencing replacement, Pambula cemetery fencing replacement, Wyndham Shared path, Bermagui Apex shared path network, Pambula Beach shared path, Eden shared path, Tanja Hall and school driveway carpark and safety improvements, Aslings Beach carpark upgrade and Colombo Park Bemboka inclusive parkland and accessibility improvements.

3. Provide in-principle support to prepare an application for the Bega War Memorial Pool Renewal and Upgrade for submission to Building Better Regional Fund (BBRF) Round 5 Infrastructure Stream and to seek an exceptional circumstances exemption from our cash contribution to the project.

Executive Summary

The Australian Government has awarded Council $1,720,920 under Phase 2 of the Local Roads and Community Infrastructure Program. It is proposed that these funds be allocated to the following projects:

Construction of toilet block at Apex Park Cobargo and demolition of old playground and toilet block in Tathra including landscaping of site	165,900
Dickinson Oval Bermagui fencing replacement	57,000
Towamba Oval fencing replacement	57,000
Pambula cemetery fencing replacement	31,100
Wyndham Shared path	186,600
Bermagui Apex shared path network	103,700
Pambula Beach shared path	62,200
Eden shared path	259,200
Tanja Hall and school driveway, carpark and safety improvement	207,300
Aslings Beach carpark upgrade	311,000
Colombo park Bemboka inclusive parkland and accessibility improvements	279,920

This report also seeks in-principle support to prepare an application for the Bega War Memorial Pool Renewal & Upgrade for submission to Building Better Regional Fund Round 5 Infrastructure Stream and to seek an exceptional circumstances exemption from our cash contribution to the project.

Background

The Federal Government’s Local Roads and Community Infrastructure Program (LCRIP) is a non-competitive funding allocation designed to support local Councils to deliver priority projects to support local economies to recover from the COVID-19 pandemic. Council received $1,221,983 of funds through Phase 1 of this program in 2020 for the Tathra Kiosk upgrade, Berrambool footbridge upgrade and Plumb Motors car park sealing projects. Phase 2 of the program opened in December 2020 and Council has been allocated $1,720,920 to use on local community infrastructure projects. Council needs to nominate projects in line with the guidelines to the funders for approval before commencing. The construction works for the projects must be completed by the 31 December 2021 with all projects works to be completed by 1 June 2022.

The Building Better Regions Fund (BBRF) is an annual Federal Government competitive funding program. Council has previously been successful in Rounds 2 and 4 of this program. Round 5 of the BBRF program opened on 12 January and closes on the 5 March 2021. The program has two streams: Community Investments and Infrastructure. This round is allocating half of the $200 million funding pool to tourism infrastructure projects. Projects under this fund can seek funding for up to 50% of their project cost where the other 50% must be a cash contribution. Applicants are able to seek an exceptional circumstances exemption from the cash contribution to the project. This program is for investment ready projects and all infrastructure stream applicants must supply a cost benefit analysis for their project to be eligible.

Options

Options available to Council are to:

1. Accept the grant awarded under LRCIP for the projects identified in this report and provide in-principle support to prepare an application for the BBRF Round 5 Infrastructure Stream and to seek an exceptional circumstances exemption from our cash contribution to the project. This is the recommended option.

2. Not accept one or all of the grants covered by this report.

Community and Stakeholder Engagement

Consultation undertaken

The projects included in this report have been identified in Council’s forward work plans or in the 2017 Infrastructure Prospectus and or the Prospectus 2.0 approved short list. Advocacy for funding for these projects has been the subject of reports to Council and discussion with key stakeholders.

Consultation planned

Should Council adopt the recommendations of this report to accept the grant awarded under the LRCIP, further consultation would take place with stakeholders. It should be noted that there is a separate and inter-related report in this business paper that discusses the Tathra toilet block/playground proposed removal and proposed consultation.

Council consideration of input

Council has considered the projects outlined in this report on a number of previous occasions.

Engagement undertaken

Engagement planned

Financial and Resource Considerations

The LRCIP is a non-competitive contribution of $1,720,920 towards local economic stimulus projects. It is proposed to bring forward eleven community projects, with a total value of $1,720,920, into the 2020-21 and 2021-22 capital works program.

The BBRF provides 50% funding for the total cost estimate of $9,150,00. The grant could provide $4,575,000 towards the cost of the Bega Pool project. It is proposed that Council seeks and exceptional circumstances exemption from the 50% cash contribution. In the guidelines eligibility for the exemption includes drought and/or disaster declaration, limited financial capacity of local council, impact of industry decline or other exceptional circumstances with supporting evidence.

Bega Valley Shire Council has been ranked as the most impacted Australian local government area in 2020 in the recently released Australian Disaster Resilience Index developed by the Bushfire and Natural Hazards Cooperative Research Centre and the University of New England.

If Council is unable secure an exceptional circumstances exemption it recommended the shortfall for the project be sought as a matching contribution from the NSW Government in the first instance, with Council to underwrite the shortfall with a commitment to fund the gap through loan funds.

Funding source		Amount
Local Roads and Communities Infrastructure Program Grant	$	1,720,920
Building Better Regions Fund Grant	$	4,575,000
NSW Government Grant or Loan Funds	$	4,575,000

Legal /Policy

The acceptance of grants is a regular activity of Council. Grant agreements are well understood. Conditions in the grant agreements are abided to by project managers and all other staff and contractors involved in delivering the projects. Any major variations are reported to Council.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The grants recommended for acceptance are consistent with Council’s identified priorities, and deliver on the following Goals in the Community Strategic Plan:

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

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

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

Environment and Climate Change

The projects will be delivered in accordance with Council’s procurement and project delivery framework, which seek to maximise environmental benefits. The detailed swimming pool design will include environmentally sensitive and energy efficient considerations.

As noted Bega Valley Shire Council has been ranked as the most impacted Australian local government area in 2020 in the recently released Australian Disaster Resilience Index developed by the Bushfire and Natural Hazards Cooperative Research Centre and the University of New England.

Economic

The projects will deliver local economic stimulus which will contribute to economic recovery from recent bushfires and the COVID-19 pandemic.

Council’s procurement practices, and the requirements of the grants, favour award of contracts to local suppliers, providing they are able to demonstrate value for money.

Risk

The acceptance of grants and subsequent delivery of capital works projects is standard business for Council. Risks are managed in accordance Council’s project management framework and standard operating procedures, which require project risks to be identified, assessed and mitigated.

Social / Cultural

The projects identified for grant funding provide significant social benefit the Bega Valley Shire community.

Attachments

Nil

Council	27 January 2021
*Item 11.6 - Attachment 1*	Council report dated 13 March 2019 - Land Divestment Options - Lot 13 DP 1107310 & Lot 18 DP 255593 on the corner of Mecklenberg Street and Minyama Parade, Bega

11.6. Proposed divestment - Lot 13 DP 1107310 & Lot 18 DP 255593 Corner of Mecklenberg Street and Minyama Parade, Bega

A formal request has been received for the purchase of Lot 13 DP 1107310 & Lot 18 DP 255593 on the corner of Mecklenberg Street and Minyama Parade, Bega.

Director Assets and Operations

Officer’s Recommendation

1. That Council receive and note the report and attached Confidential Memorandum.

2. That Council approve the divestment of Lot 13 DP 1107310 & Lot 18 DP 255593, Corner of Mecklenberg Street and Minyama Parade, Bega to the offeree [insert name], for the amount as offered.

That Council delegate authority to the General Manager to continue to negotiate a sale of Lot 13 DP 1107310 & Lot 18 DP 255593, Corner of Mecklenberg Street and Minyama Parade, 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 easements in favour of Bega Valley Shire Council for the water and sewer mains traversing Lot 18 DP 255593 and dedication of a strip and corner splay of Lot 13 DP 1107310 for road widening.

4. That all 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.

Executive Summary

A formal offer to purchase Lot 13 DP 1107310 & Lot 18 DP 255593, Corner of Mecklenberg Street and Minyama Parade, 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 13 DP 1107310 & Lot 18 DP 255593, Corner of Mecklenberg Street and Minyama Parade, 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 13 DP 1107310 and Lot 18 DP 255593 on the corner of Mecklenberg Street and Minyama Parade, 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 13 DP 1107310 and Lot 18 DP 255593 on the corner of Mecklenberg Street and Minyama Parade, 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 was finalised in August 2020.

LJ Hooker Bega has formally written to Council with an offer for the purchase of Lot 13 DP 1107310 & Lot 18 DP 255593, Corner of Mecklenberg Street and Minyama Parade, Bega. Both parcels are currently zoned R2 - Low Density Residential and as outlined in the detail attached to this report are constrained by water and sewer mains that diagonally traverses through Lot 18 DP 255593. In addition, a strip and corner splay of Lot 13 DP 1107310 is required for road dedication prior to the sale progressing. The offeree is aware of these encumbrances and the offer is subject to a 30-day settlement following registration of the boundary adjustment.

Options

The options available to Council are:

1. Proceed with disposal of Lot 13 DP 1107310 & Lot 18 DP 255593, Corner of Mecklenberg Street and Minyama Parade, 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 13 DP 1107310 & Lot 18 DP 255593, Corner of Mecklenberg Street and Minyama Parade, Bega.

4. Retain ownership of Lot 13 DP 1107310 & Lot 18 DP 255593, Corner of Mecklenberg Street and Minyama Parade, 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 13 DP 1107310 & Lot 18 DP 255593, Corner of Mecklenberg Street and Minyama Parade, Bega. LJ Hooker Bega 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 water and sewer mains as well as the boundary adjustment 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 (under offer)

· 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 13 DP 1107310 & Lot 18 DP 255593, Corner of Mecklenberg Street and Minyama Parade, Bega, the creation of easements and boundary adjustment will be offset against the proceeds of sale.

If Council retains Lot 13 DP 1107310 & Lot 18 DP 255593, Corner of Mecklenberg Street and Minyama Parade, 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 13 DP 1107310 & Lot 18 DP 255593, Corner of Mecklenberg Street and Minyama Parade, 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 13 DP 1107310 & Lot 18 DP 255593 on the corner of Mecklenberg Street and Minyama Parade, Bega

2 ⇩. Land Divestment Options Lot 13 DP 1107310 & Lot 18 DP 255593 Corner of Mecklenberg Street & Minyama Parade Bega

3 . IPN Valuation report - Lot 13 DP 1107310 & Lot 18 DP 255593 Corner of Mecklenberg Street and Minyama Parade, 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). 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 . Confidential Memorandum regarding proposed divestment of Lot 13 DP 1107310 & Lot 18 DP 255593 Corner of Mecklenberg Street and Minyama Parade, 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). 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.

PDF Creator

Council 27 January 2021

Item 11.8

11.8. Proposed divestment - Lot 66 DP 1171407 Ravenswood Street, Bega

A formal request has been received for the purchase of Lot 66 DP 1171407 Ravenswood Street, Bega.

Director Assets and Operations

Officer’s Recommendation

1. That Council receive and note the report and attached Confidential Memorandum.

2. That Council approve the divestment of Lot 66 DP 1171407 Ravenswood Street, Bega to the offeree [insert name], for the amount as offered.

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

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

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

Executive Summary

A formal offer to purchase Lot 66 DP 1171407 Ravenswood Street, Bega has been received and Council’s consideration is requested to progress with divestment of the land parcel. 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 66 DP 1171407 Ravenswood 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 66 DP 1171407 Ravenswood 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 66 DP 1171407 Ravenswood Street, Bega by public auction, private treaty or expression of interest.

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.

LJ Hooker Bega has formally written to Council with an offer for the purchase of Lot 66 DP 1171407 Ravenswood Street, Bega. The parcel is currently zoned RU2 - Rural Landscape and as outlined in the detail attached to this report does not currently have a dwelling opportunity as it is below the 20-hectare minimum lot size.

Options

The options available to Council are:

1. Proceed with disposal of Lot 66 DP 1171407 Ravenswood 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 66 DP 1171407 Ravenswood Street, Bega.

4. Retain ownership of Lot 66 DP 1171407 Ravenswood 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 66 DP 1171407 Ravenswood Street, Bega. LJ Hooker Bega were appointed to market the property on Council’s behalf and have received a formal offer for the purchase of the land parcels.

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 (under offer)

• Lot 66 DP 1171407 Ravenswood Street, Bega (under offer)

• 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 66 DP 1171407 Ravenswood Street, Bega will be offset against the proceeds of sale.

If Council retains Lot 66 DP 1171407 Ravenswood Street, Bega, Council’s financial liability for the land parcel 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.

Item	$ Excl GST
Expenditure Detail
<list project scope deliverables>


Total Expenditure	XXXX (sum of all costs)

Source of Funds
<approved budget\|revenue funded>
<grant income\|name of grant>
<reserve funds\|name of reserve
Total income available	* total income = total project cost

Total Project Capital Cost
Total Available Construction Funding
Project Funding Shortfall	*= total expense – total income*

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts	$ Excl GST
Capital Investment \| Renewal, Upgrade, New
Annual maintenance and operational costs
Depreciation costs
User charges (annual income)

Legal /Policy

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 66 DP 1171407 Ravenswood Street, Bega was 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

Risk

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 66 DP 1171407 Ravenswood Street, Bega

2 ⇩. Land Divestments Options Lot 66 DP 1171407 Ravenswood Street Bega

3. IPN Valuation report - Lot 66 DP 1171407 Ravenswood 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). 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. Confidential Memorandum regarding proposed divestment of Lot 66 DP 1171407 Ravenswood 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). 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 27 January 2021

Item 12.2

12.2. Submission Exposure Draft Bill on Local Government Rating Reform

Council has the option to provide feedback to the Office of Local Government on their response to the Final Report by IPART on its local government rating system review.

General Manager

Officer’s Recommendation

That Council:

1. Receive and note “Towards a fairer rating system” A consultation guide to local government rating reform.

2. Note that an extension of one (1) month past 5 February 2021, has been requested from Office of Local Government for the submission by a number of CRJO member Councils to the deadline for submissions.

3. Provide any additional comments to be included in the proposed submission to Office of Local Government on the Exposure Draft of the Local Government Amendment (Rating) Bill 2020.

4. Note that support for changes in the rating structures will have time and resource implications dependent on the expected introduction of any change. Following direction from Council, separate reports on implementation of changes should be provided at the appropriate time.

Executive Summary

On 22 December 2020, the Office of Local Government released the Exposure Draft Bill on local government rating reform for public consultation (the Bill). The Bill proposes to implement key elements of the Government’s response to the Independent Pricing and Regulatory Tribunal’s (IPART) review of the local government rating system, which was released in June 2020.

Councils, ratepayers and other interested individuals and organisations are invited to provide feedback to help shape the final Bill, which is intended to be introduced into the Parliament in early 2021.

A Consultation Guide, Towards a Fairer Rating System, has been released to explain the proposed changes to help guide submissions. Submissions are expected to be received by close of business 5 February 2021.

Background

The Office of Local Government (OLG) Circular provides key points on the proposed Bill. This includes noting that the Government has committed to a package of reforms to ensure the local government rating system is equitable and responsive to community needs. These reforms will ensure councils have a stable and reliable revenue base, provide greater flexibility for councils and ratepayers, enabling a fairer distribution of the rating burden.

As most of these reforms require changes to the Local Government Act 1993, a Bill – the Local Government Amendment (Rating) Bill 2020 – has been prepared. If passed by the NSW Parliament, this Bill would:

· allow those new councils created in 2016 that have not already harmonised their rating structures to do so gradually over four years

· allow councils to levy special rates for infrastructure jointly funded with other levels of government outside the rate peg without IPART approval,

· create a new rating category for environmental land,

· create more flexibility for councils to create rating subcategories for residential land, business land and farmland, including vacant land,

· amend exemptions that apply to water and sewerage special rates and to land subject to conservation agreements,

· require councils to report the value of exemptions they grant each year,

· narrow scope to postpone rates and let councils choose whether to write them off, and

· allow councils to sell properties for unpaid rates after 3 years rather than 5 years.

After making any changes in response to the submissions received, the Government will introduce the Bill into the Parliament early in 2021.

Further rating reforms that do not rely on the Bill will be implemented by making changes to regulations and releasing new guidance.

In part, this includes aligning rating income growth with population growth to help councils provide for growing communities within the rate pegging system while still protecting residents from sudden, excessive rate rises.

To give effect to this commitment, the Minister has asked IPART to recommend a new rate peg methodology that allows the general income of councils to be varied each year in a way that accounts for population growth.

IPART has been asked to ensure that councils with lower population growth are not disadvantaged, to undertake public consultation and to provide a Final Report within nine months.

The Exposure Draft Bill and Towards a Fairer Rating System Consultation Guide are available on the OLG’s website at www.olg.nsw.gov.au/councils/policy-and-legislation/fairer-rating-system-consultation

The Government’s response to IPART’s review of the local government rating system is available at www.olg.nsw.gov.au/wp-content/uploads/2020/06/IPART-Rating-Review-Government-Response.pdf

IPART’s Final Report on the local government rating system is available at www.ipart.nsw.gov.au/Home/Industries/Local-Government/Reviews/Local-Government-Rating-System/Local-Government-Rating-System

DRAFT COMMENTS FOR SUBMISSION

In consultation with Canberra Regional Joint Organisation Councils and aligned with the Regional Cities NSW Emergency Services Discussion paper the following draft comments are provided to Council for consideration as part of the submission process and draw on the recommendations of the 2016 IPART Review of the Local Government Rating System; the 2020 Productivity Commission (PC) Review of Infrastructure Contributions; and Regional Cities NSW (RCNSW) paper on emergency services funding.

Central to those reports and prompted by the findings of the 2013 Independent Local Government Review Panel (ILGRP), is the ambition to establish alternate means to improve the financial sustainability of councils in NSW.

Where the Government has indicated ‘support’ or ‘support in principle’ in its Response to the IPART Review, Council urges the implementation of those recommendations as soon as possible.

Council acknowledges the Government has already rejected recommendations from the IPART Report to move away from the rate peg or enable transition to a Capital Improved Valuation system (Recommendations 1-7); refining exemptions to rating from ownership to use (Recommendations 14-17, 19-21); and an approach to offsetting costs of pension subsidies (Recommendations 26-28). It is noted NSW remains at variance to other states with regard to a progressive land tax system and full compensation for pension subsidies.

While the position of Government makes the alignment of progressive growth in revenues to growth in population and consequent demand for services and infrastructure difficult, it is noted the Government is open to consider new rating categories, new differential rating structures, and new funding frameworks for infrastructure associated with development.

This submission also proposes a progressive tax system, removing lags, comprising a mix of:

· special rates and infrastructure contributions to mirror rather than mitigate, the impacts of population growth; together with

· notional yield catchups to recover under-charging the rate peg or development contributions;

· supported by a redistribution of the rate burden through broader rate categories;

· a revision of rate exemptions based on land use (including crown corporations); and

· the introduction of special levies to support emergency services, with the removal of related contributions from councils, while the Local Government and Emergency Services Acts are under review

the above will support the ongoing financial sustainability of local government in NSW.

For example, the elimination of the emergency services contribution and associated assets depreciation on Council, together with the full reimbursement of the pension subsidy would yield $1,526,000 (6% of general rate) to Council, without impact on ratepayers

The potential introduction of infrastructure, environmental or energy rate levies, to mitigate demands on infrastructure and services from population growth, or additional conservation to manage public lands; and leverage government grants and development activity, could elevate the general rate yield but would require further detail on administration of the levies if we were to quantify this amount. While these would be additional charges to ratepayers, we expect the levies would be specifically collected to deliver planning, accounting and reporting to community. It would support financial sustainability by acknowledging administrative burdens placed on Councils by other levels of government and other expenses not subject to capped CPI price increases.

Infrastructure Funding

Council supports the recommendation of IPART to introduce a special rate for joint delivery of infrastructure projects, with income generated being on top of the general rate yield capped by the rate peg. Council is also broadly in support of the key recommendations of the Productivity Commission (PC) Report on Infrastructure Contributions, by:

· removing the disincentive for councils to accept development and growth by allowing for the local government rate peg to reflect population growth

· ensuring charges can be properly factored into feasibility studies by requiring

contributions plans be developed prior to rezoning

· introducing a direct land contribution obligation for landowners following rezoning to

provide early and adequate funding for land

· managing costs and complexity of section 7.11 local contributions plans by using

benchmark costs and focusing the role of IPART in reviewing plans

· providing a simpler option for councils by increasing the maximum rate of section 7.12 fixed development consent levies

· addressing insufficient and ad hoc section 7.24 special infrastructure contributions

through implementation of modest and simple broad-based regional charges

· being more transparent in reporting on how much money is collected and where it is spent

Council notes the Government acknowledges the potential relationship between property tax (rates) and development contributions, but suggests it is important to differentiate metro, from regional city, regional and rural development contributions and rating benchmarks, indices and charging arrangements, rather than introduce a ‘one-size-fits-all’ approach.

Council also suggests to Government, in line with the PC Report, pursuing a two-part approach incorporating an infrastructure (ringfenced) special rate levy and infrastructure contributions, noting indexation for those should differ to rate peg (LGCI). In that way, the structure of the rating and contributions systems can be progressive, transparent and incremental, and reported annually. In addition, contributions or special rates should be available as co-contributions by LGAs to leverage government grants or be a catalyst for rejuvenation of town centres and public spaces and facilities with new development.

In particular, Council supports recommendation 3.1 of the PC Report, noting development-contingent capital costs should continue to be funded through infrastructure contributions, with the additional rate revenue used to fund the general costs from population growth. It is understood IPART is advising on a methodology to capture population growth into the rate peg. A review of infrastructure types that can be funded through section 7.11 contributions plans, consistent with the user pays principle, should be undertaken concurrently. This recommendation aligns with Theme 2 of the Government Response to the IPART Review.

Unfortunately, with reference to earlier comments on Growth and Infrastructure Contributions in this submission, many regional and rural councils waive or reduce development contributions to attract development and economic growth, in turn reducing their capacity to provide or meet the council share of new of upgraded infrastructure required of the relevant contributions plan. Some councils may have policies requiring greenfield development funds 100% of new infrastructure and upgrades to connect to existing networks, while infill may be discounted up to 50% to encourage redevelopment and gentrification the Government seeks (refer Growth above). It is suggested the Government consider a mechanism to enable councils to recover waived, discounted or deferred contributions through an infrastructure special rate levy.

Emergency Services Funding

The 2019-20 bushfire season and other recent natural disasters have made clear the urgent need for reform of the architecture, funding and operation of NSW emergency response services. Regional Cities NSW (RCNSW) has prepared a paper, supported by the Canberra Region Joint Organisation (CRJO), proposing an alternate funding model for emergency services (ES) in NSW. It aims to decouple increases in ES contributions from the rate peg as a minimum, but ideally to levy a property-based ES levy across all rateable properties, for disbursement to Government to fund emergency services operations and capital expenditure in NSW. The paper recognises a new approach is needed, considering the reviews and focus on what can be learned from the 2019-20 bushfires (along with consideration of broader state financial reform), now is the right time to undertake that transformation.

The current model of funding for emergency services draws on multiple sources, provides no certainty or transparency and places an inequitable and growing burden on local councils. At present, homeowners pay over 80% of costs through a levy on home insurance, the State Government contributes around 7% and local governments, in their role as land managers, contribute 11.7%, through their general rate.

The costs borne by councils generally exceed 4% of their general rate in regional and rural LGAs. Their expenses comprise:

· Local Government contribution

· Emergency Services asset maintenance repair and renewal

· Emergency Services asset depreciation

· Emergency Services within insurance premiums

RCNSW has lobbied Government, suggesting:

· Emergency services management is a state responsibility and that it should be managed and coordinated centrally

· Emergency services should be delivered by an integrated agency to:

o capture significant efficiency gains and

o increase capacity for more on the ground professional emergency management in the LGAs

· Emergency services should be funded by the State to provide certainty, and transparency

Council supports the proposition of RCNSW and CRJO to transition away from the insurance-based ESL and centralisation of emergency services responsibility with State Government in conjunction with the review of the Local Government Act and Emergency Services Act, and contain the following components:

· The introduction of a Property-based Emergency Services Levy (PBESL) on rate notices for disbursement to state government;

· The discontinuation of the annual ES contribution by local government

· The transfer of the emergency services assets from local government to the NSW government, relieving net expenses for hazard reduction and depreciation expenses for councils.

The phased introduction of PBESL on all rateable properties, delivered by a separate line of rating on council annual rate notices (potentially delivered and recovered through Revenue NSW in the future), to fully fund the cost of emergency services for government, could be considered as an element of ‘budget repair’ post-bushfires and COVID-19. The removal of annual contributions from councils to emergency service funding will also assist their financial sustainability – in many cases the annual contribution exceeds 4% of their general rate yield.

The proposed PBESL is a property tax and may be structured as a base charge and an ad valorem rate. For example, 50% of the emergency services funding may be recovered across all rateable properties by the base charge, differentiated by zones (ie metro, regional, regional city, rural); while the balance is effectively differentiated by the unimproved land values established by the NSW Valuer-General across the residential, business, farmland (and potentially environment) rate categories across LGAs in the State.

Both the NSW Government and all property owners would have clear visibility on the “real” cost of emergency services, rather than it being buried in a myriad of different payments and there would be a single, efficient revenue lever to adjust to meet growth in costs.

It would also separate emergency services costs from council budgets, giving councils greater control and certainty over their finances and enabling them to focus on their core functions.

ServiceNSW or RevenueNSW’s potential future collection of the PBESL through the council rate mechanism will also provide efficiencies, by reducing administrative costs through the elimination of additional collection activities and accounting processes. This approach may form part of land tax and stamp duty reforms contemplated by the NSW Treasurer and also assist NSW Government budget repair.

Environmental Funding

Much of the State has been ravaged by drought, fire and flood, with the onset of natural disaster or the spread of weed being indiscriminate to LGA boundaries. Catchments, habitat, bushland and coastal areas need urgent rehabilitation.

Council supports the recommendation of IPART to introduce a special rate for joint delivery of infrastructure projects, with income generated being on top of the general rate yield capped by the rate peg. Council also supports the extension to a fifth rating category ‘environmental land’ – noting it is limited to land that cannot be developed due to geographic or regulatory restrictions (presumably imposed by NSW or local council regulations, or through voluntary vegetation or biodiversity agreements).

However, it is suggested this concept of joint delivery be extended to enable adjoining councils within a joint organisation to set a regional rate (such as an environmental levy) to fully fund local and regional environmental studies and works, led by and costed through adopted local and regional plans (eg catchment, riparian, weed/biosecurity, coastal, biodiversity, heritage), and supported by volunteer groups (eg Landcare, Coastcare).

In this way a consistent base charge and ad valorem rate can be set by councils by agreement through the joint organisation and be transparently planned and reported to community. The funds raised by the environmental levy would enable local and regional studies and environmental works, and may be used to leverage government grants, match Aboriginal heritage grants or acquire environmental offsets at a regional or local scale. It may also provide a source of funds for councils to contribute towards new demands introduced by the NSW biosecurity and biodiversity legislation.

Rating Categories

The proposed subcategories of ‘commercial’ and ‘industrial’ (within business); ‘vacant’ (within residential, business and mining); subcategorising farmland by geography and dominant use; and a ‘residual’ category (rather than business category as the ‘catch-all’) are supported.

However it is suggested energy installations be also linked to rating reforms – potentially introducing an ‘energy’ rate category similar to the mining rate category, with the proportionate value of the land occupied by the development (eg wind farm, solar array) subject to mixed use rating provisions, or an annual royalty. These installations are developments, usually on farmland (or future environmental land) where the nature and intensity of the use is not captured appropriately, nor a contribution to the rate burden rated appropriately. Proposed to be disclosed as a separate rate on the landowners rate notice, the charge may be recovered from the tenant (energy installation) by the owner and subsequently redistributed by the tenant as an oncost in renewable energy charges.

Presumably, either a split rate category or mixed-use valuation would be applied to environmental and energy category lands.

The concept of environmental category should also be extended to Government and private enterprise such as Forestry and National Parks – in part as the land is managed for biodiversity and catchment management, and this would be a recognition that the lands form a ‘development’ upon which a return is generated, public infrastructure utilised, and no form of tax or royalty realised.

Pension Subsidy

The IPART report recommends a rates deferral system for pensioners but was not supported by Government. However reimbursing local councils the remaining 45% of annual (and growing) pension subsidies brings NSW in line with other States. Council supports the IPART recommendation regarding assistance for pensioners.

Rate Recovery

As a consequence of drought, bushfire and COVID, Council expanded its hardship and financial assistance policies to ease the burden on impacted residents, farmers and business by waiving interest and extending payment arrangements.

While outstanding rates and charges averaging around 4% for the previous two years, it has increased to near 6% at 30 June 2020, now representing $3.2 Million. The annualised cost to recover rates has moved to $320K in that same period. While returns from investments are low in the current economic climate, the cost of recovery and under recovery places pressure on working capital.

The reduction to three years to sell up property for unpaid rates is supported, however the relative discounting of the mandated interest percentage on outstanding rates should be reviewed to minimise councils being used as a ‘surrogate bank’.

While councils are encouraged to utilise Revenue NSW to recover rates, an examination of the relative benefits of levying and recovering rates for all councils by that agency should be considered – particularly in the context of the broader property tax reforms proposed by Government.

Comments related to each of the Government response items is outlined below:

	Recommendation	Government Response	Council Comment
7	The NSW Government fund the cost for a non-metropolitan council to set up a Capital Improved Value database for the purposes of implementing our recommended formula for calculating growth in rates revenue outside the rate peg, where the Unimproved Value method for setting rates is maintained	Given the lack of a clear case in support of introducing CIV, the significant implementation costs involved and the strong stakeholder views, the Government will not implement CIV as a basis for setting ad valorem rates at this time.	Option should be explored if the blended rate category and infrastructure contribution proposal to adequately fund population growth in regional growth aeras does not materialise
8	The Local Government Act 1993 should be amended to allow councils to levy a new type of special rate for new infrastructure jointly funded with other levels of Government. This special rate should be permitted for services or infrastructure that benefit the community, and funds raised under this special rate should not: » form part of a council’s general income permitted under the rate peg, nor » require councils to receive regulatory approval from IPART	The Government will examine how this recommendation can complement current reforms being made to the infrastructure contributions framework	Support
9	The Local Government Act 1993 should be amended to reflect that, where a council does not apply the full percentage increase of the rate peg (or any applicable Special Variation) in a year, within the following 10-year period, the council can set rates in a subsequent year to return it to the original rating trajectory for that subsequent year.	Support	Support
10	The Local Government Act 1993 should allow councils to determine a residential subcategory, and set a residential rate, by: » separate town or village, or residential area	Support in principle	Support
11	The Local Government Act 1993 should outline that: » A ‘residential area’ is an area within a contiguous urban locality that has, on average, different access to, demand for, or costs of providing council services or infrastructure (relative to other areas in that locality	Support in principle	Support
12	Where a council uses different residential rates within a contiguous urban locality, it should be required to: » ensure the highest rate structure is no more than 1.5 times the average rate structure across all residential subcategories (ie, so the maximum difference between the highest and average ad valorem rates and base amounts is 50%), or obtain approval from IPART to exceed this maximum difference, and » publish the different rates (along with the reasons for the different rates) on its website and in the rates notice received by ratepayers	Support in principle	Support
13	At the end of the 4-year rate path freeze, new councils determine whether any pre-merger areas are separate towns or villages, or different residential areas	For further analysis and consideration	NA
14-16	The Local Government Act 1993 should be amended to: » exempt land on the basis of use rather than ownership, and to directly link the exemption to the use of the land, and » ensure land used for residential and commercial purposes is rateable unless explicitly exempted. » include land owned by a private hospital and used for that purpose. The Aged Care Act 1997 (Cth) be proportionally rateable according to the share of places whose maximum Refundable Accommodation Deposit is above the level set by the Minister	ruled out implementing recommendations that would adversely impact vulnerable members of the community	All categorisations and exemptions should be based on land use, and potentially be varied on commerciality
18	The Local Government Act 1993 should be amended to remove the current rating exemption for land that is the subject of a conservation agreement and instead require it to be rated using the Environmental Land category.	Support in part.	Support, suggesting new rate category or split valuation
20-21	Where a portion of land is used for an exempt purpose and the remainder for a non-exempt activity, only the former portion should be exempt, and the remainder should be rateable	ruled out implementing recommendations that would adversely impact vulnerable members of the community	See comments 18
23	A council may apply to IPART for a Special Variation to take account of the changes in exemptions using a streamlined process in the year that our recommended exemption changes come into force.	noted	Support SRV
24	The Local Government Act 1993 should be amended to remove the current exemptions from water and sewerage special charges in section 555 and instead allow councils discretion to exempt these properties from water and sewerage special rates	Support	Support
25	At the start of each rating period, councils calculate the estimated value of rating exemptions within the council area. This information should be published in the council’s annual report or otherwise made available to the public.	Support	Support
26-28	For new and existing eligible pensioners, introduce a rate deferral scheme operated by the NSW Government, with either: » eligible pensioners would be allowed to defer payment of ordinary council rates up to $1,000 per annum and indexed to CPI, or » the current pensioner concession	Noted	Should the existing pension rebate not be subsidised 100% by Government, then the rate deferral scheme should be funded by the NSW Government with interest at the Government’s 10-year borrowing rate, and could become due when property ownership changes.
29	The Local Government Act 1993 should be amended to add a new environmental land category	Support in principle.	Support
30	The Local Government Act 1993 should be amended to allow business land to be subcategorised as ‘industrial’ and or ‘commercial’ in addition to centre of activity.	Support	Support
31	The Local Government Act 1993 should be amended to add an optional vacant land subcategory for residential, business and mining land.	Support	Support
32	The Local Government Act 1993 should be replaced to allow farmland subcategories to be determined based on geographic location.	Support in principle.	Support, including subcategories based on intensity of use (eg horticulture, forestry, aquaculture)
33	The Local Government Act 1993 should be amended to reflect that a council may determine by resolution which rating category will act as the residual category	Support	Support
34	Any difference in the rate charged by a council to a mining category compared to its average business rate should primarily reflect differences in the council’s costs of providing services to the mining properties	Support	Support, particularly in relation to roads and environmental damage
35	Councils have the option to engage the State Debt Recovery Office to recover outstanding council rates and charges	Support	Support, provided unit costs comparable
36	Reducing the period of time before a property can be sold to recover rates from five years to three years.	Support	Support
37	All councils adopt an internal review policy, to assist those who are late in paying rates, before commencing legal proceedings to recover unpaid rates	Support.	Support
39	The Local Government Act 1993 should be amended to allow councils to offer a discount to ratepayers who elect to receive rates notices in electronic formats, eg, via email	Support	Support in principle – all notices should be phased to be issued electronically
40	The Local Government Act 1993 should be amended so that ratepayers are not permitted to postpone rates as a result of land rezoning, and councils are not required to write-off postponed rates after five years.	Support in principle	Support
41	The valuation base date for the Emergency Services Property Levy and council rates be aligned	Noted	Per RCNSW proposal also supported by the CRJO: » a PBESL should be introduced to fund emergency services in NSW; » remove LGA contributions; » transfer RES assets from LGAs to Government, & » remove associated depreciation expense from LGA
42	After the NSW Valuer General has established the database to determine Capital Improved Values for rating purposes, councils be given the choice to directly buy valuation services from private valuers that have been certified by the NSW Valuer General.	Noted	Prefer consistent approach via engagement by V-G across the State

A copy of the proposed responses to the online consultation guide is attached.

Options

Council can:

1. Support the submission and comments as outlined.

2. Not support the submission.

3. Make amendments to aspects of the submission.

Community and Stakeholder Engagement

Due to the extremely short response period with the consultation period being advised to Councils by the Minister for Local Government on 22 December 2020 with closing date for submissions the 5 February 2021 there has been no opportunity for any community feedback or input. Community members have had capacity to provide their own input into the submission period directly to government.

Engagement undertaken

Nil

Engagement planned

Nil

Financial and Resource Considerations

There are no financial considerations in providing the submission. There have been staff resource impacts in relation to preparing the submission and there will be a range of impacts from changed legislation.

Legal /Policy

The submission provides feedback to government on the proposed Local Government Amendment (Rating) Bill 2021.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

6: Strong, Consultative Leadership

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

6.12.3: Oversee Business and Governance services, programs and finances

Environment and Climate Change

The feedback form includes rating proposals that would have an impact on environmental use and management of land.

Economic

The rating review supports progress of local government being financially sustainable through revenue generation of land tax.

Risk

Significant consultation has been undertaken to address financial and strategic risk of local government through rating policy. This feedback form provides comment to the Office of Local Government on the Exposure Draft of the Local Government Amendment (Rating) Bill 2020

Social / Cultural

The Government has committed to a package of reforms to ensure the local government rating system is equitable and responsive to community needs. These reforms will ensure councils have a stable and reliable revenue base, provide greater flexibility for councils and ratepayers, enabling a fairer distribution of the rating burden.

Attachments 1 ⇩. Attachment - Towards a Fairer Rating System - Proposed responses for OLG Feedback Form

Council 27 January 2021

Item 12.3

12.3. Constitutional referendums and Council polls

Council is required to advise the NSW Electoral Commission of any resolution to conduct a constitution referendum or council poll as part of the 2021 ordinary election.

General Manager

Officer’s Recommendation

That Council advise the NSW Electoral Commissioner that it has resolved not to hold any constitutional referendum or poll in conjunction with the September 2021 local government election.

Executive Summary

The ordinary election of Council will be held on Saturday 4 September 2021. Council has resolved to engage the NSW Electoral Commission (NSWEC) to conduct the election. Staff are progressing the planning for the election and further information will be provided in February.

Council is also required to inform the NSW Electoral Commissioner of any resolution to hold a constitutional referendum or poll in conjunction with the September 2021 local government election.

This report confirms that Council has not resolved to hold any constitutional referendum or poll in conjunction with the September 2021 local government election.

Background

Councils are required to inform the NSW Electoral Commissioner (NSWEC) if they have resolved for the NSWEC to administer a constitutional referendum or poll in conjunction with the September 2021 local government elections.

Options

Council has not resolved to hold any constitutional referendum or poll in conjunction with the September 2021 local government election.

Council has the option to maintain this position or could resolve to hold a constitutional referendum or poll and notify the NSW Electoral Commissioner.

Community and Stakeholder Engagement

Councils are responsible for the preparation and publicity of the required explanatory material for any referendum or poll. Councils must ensure this material presents a balanced case both for and against any proposition to be put to a constitutional referendum.

Engagement undertaken

Nil

Engagement planned

The recommendation of this report does not require community engagement. Should Council consider an alternative option, a community engagementp plan would need to be considered.

Financial and Resource Considerations

The budget for the conducting of the 2021 local government election will be in the FY2022 budget. Based on the quote received from NSW Electoral Commission, the costs of the conduct of the election, including GST was expected to be $335,145 (incl. GST). Council shares the costs of a returning officer with Eurobodalla Shire Council, these costs are not included in the quoted amount.

Given the additional requirements for managing an election in a COVID environment, as well as the postponement by 12 months, it is recommended that the original quote amount be increased by 3%, rounded up to $346,000, although additional funding has been announced that indicates councils will only need to meet the costs that would have been incurred in holding the elections in a non-COVID environment.

Following advice from the NSW Electoral Commission, the additional cost attributable to conducting a constitutional referendum would be a 10% increase in the election cost. Based on the above, this equates to approximately $35,000 which would be an additional expense item to be included in the FY2022 budget.

Council staff are involved in a range of activities associated with supporting the conduct of the election. These will be outlined in the report on the conduct of the election which will be presented to Council shortly and are funded through operational budgets of the relevant service area providing the support.

Legal /Policy

Under section 16 of the Local Government Act 1993, a council must obtain the approval of its electors at a constitutional referendum to do each of the following:

· divide a council area into wards or abolish wards

· change the number of councillors

· change the method of electing the mayor

· change the method of election for councillors where the council’s area is divided into wards.

If a council resolves that a constitutional referendum or poll is to be conducted, it must comply with the notification requirements contained in Schedule 10 of the Local Government (General) Regulation 2005. Any changes approved at a referendum will come into effect at the September 2024 local government elections.

Council during this term have considered several Notices of Motion relating to changing the method of electing the mayor. There has been no resolution to hold a referendum to change the current practice of election of Mayor by Councillorsp.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

6: Strong, Consultative Leadership

6.11: We are an informed and engaged community with a transparent, consultative and responsive Council

6.11.5: Support Councillors and ensure open and effective Local Government in our Shire

The conduct of the local government elections is a key activity every four years. Due to COVID impacts the 2020 elections were delayed to 2021. This change has been reflected by updating our plans and operational activities.

Environment and Climate Change

There are no impacts on environment or climate change related to the recommendation of this report.

Economic

It is noted that in the Council election, Bulletin No. 4 that the Government has announced that it will provide additional funding to the NSW Electoral Commission to help cover the cost of conducting the September 2021 local government elections in a COVID-safe way. We trust that this means the costs (or any shortfall experienced by NSW Electoral Commissioner) will not be shifted down to local councils to cover.

Risk

Consideration of referendums or polls and subsequent notification to the NSW Electoral Commissioner regarding the resolution of Council minimises our strategic and operational risks.

Social / Cultural

What can a community expect if the Council was to hold a referendum and why is it important? The following information assists with understanding the impact of a constitutional referendum for voters and the requirements of Local Government to undertake this.

Conducting a constitutional referendum

If a council resolves to conduct a constitutional referendum it must comply with the notification requirements contained in Schedule 10 of the Local Government (General) Regulation 2005.

It is of critical importance that the referendum question or questions are carefully framed to ensure that workable decisions are achieved. All questions put at a referendum should be clear, concise, and capable of being responded to with a ‘yes’ or ‘no’ answer.

If more than one referendum question is being asked on a particular subject, then extra care needs to be taken to ensure that the possible combinations of ‘yes’ and ‘no’ answers do not produce a conflicting decision.

Dividing an area into wards or abolishing wards

After receiving elector approval at a constitutional referendum, and before dividing its area into wards, a council must undertake the consultation required by section 210A of the Local Government Act 1993 (the Act). This includes consulting with the Electoral Commissioner and the Australian Statistician and public exhibition of the proposal. (Compliance with section 210A is not required where approval has been given by electors at a referendum to abolish wards.)

Any changes to wards will come into effect for the electoral term commencing in September 2024.

Changing the number of councillors

Section 224(2) of the Act requires that not less than 12 months before an ordinary election the council must determine the number of its councillors for the following term. If, as a result of doing so, a council has determined to change the number of its councillors, it must also obtain approval for the change at a constitutional referendum. Approval would have the effect of changing the number of councillors for the electoral term commencing in September 2024.

If following the approval of a reduction in councillor numbers, a casual vacancy occurs in the office of a councillor (but not a mayor elected by the councillors), and the reduction has not yet taken effect, the vacancy must not be filled if the number of councillors will remain at or above the number approved at the referendum (section 294B of the Act).

Changing the method of electing the mayor

The Act provides two methods by which a mayor can be elected — by popular vote at an ordinary election or by vote among the councillors. Section 228 of the Act permits a council to change the way the mayor is elected by seeking approval of its electors at a constitutional referendum.

Councils with areas that are divided into wards are reminded that section 280(2) of the Act requires the same number of councillors is to be elected for each ward. A popularly elected mayor is not to be included in this count. In such circumstances, councils should be mindful that changing the method of electing the mayor could result in an increase or decrease in the number of councillors to be elected.

If electors at a constitutional referendum conducted in conjunction with the 2021 ordinary elections approve a change to the way the mayor is elected, that change will come into effect for the electoral term commencing in September 2024.

Changing the method of electing councillors

The councillors for an area that is divided into wards are to be elected in accordance with either method of election prescribed under section 280 or 281 of the Act.

The method of election under section 280 (method 1) is to apply unless a decision made at a constitutional referendum is in force, which requires the method of election to be conducted under section 281 (method 2).

The decision made at a constitutional referendum to alter the method of election to method 2 must also specify the number of councillors to be elected by the ward electorate and the number of councillors to be elected by the area electorate.

If electors at a constitutional referendum conducted in conjunction with the 2021 ordinary elections approve a change to the method for electing councillors, this change will come into effect for the electoral term commencing in September 2024.

Conducting a poll

Councils may also resolve to conduct a poll of electors in conjunction with the local government elections. The outcome of a poll is not binding as is the case with a constitutional referendum. A poll question also needs to be clearly outlined with the question framed to allow for a yes/no response. The case for and against the poll question also needs to be clearly framed.

Council held a poll in conjunction with the 2012 local government election relating to the future of the Pambula Hospital.

Attachments

1 ⇩. NSW Electoral Commission Cost Estimate Local Government Election (2020)

Council 27 January 2021

Item 13.1

13.1. Certificate of Investment

This report details Council’s cash and investments as at the end of December 2020.

Director Business & Governance

Officer’s Recommendation

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

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

Executive Summary

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

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

Background

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

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

· Council at its 25 November 2020 Council meeting resolved

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

As stated in the November report, the strategy did not allow Council to invest beyond TCorp. Following this resolution, staff have been monitoring interest rates and liaising with investment providers to enable Council investments. This process has slowed Council’s ability to invest further and staff will continue to explore options that maximise return on investment. In December 2020, Council was able to place $18 Million in term deposits for periods ranging from 1 to 3 months.

Options

This is a receive and note report and does not require consideration of options for decision.

Community and Stakeholder Engagement

Engagement undertaken

Engagement planned

Financial and Resource Considerations

A list of Councils cash and Investments is detailed below.

Council’s interest income budget is $1,376,491, income earned to date is $505,808 (37%). A review of interest income budget will be included in the December QBRS.

These funds can be broken into the following Funds:

Table 1: Investments by Fund $’000
Fund	Oct-2020	Nov-2020	Dec-2020
General Fund	22,860	27,542	24,809
Water Fund	21,815	22,066	22,314
Sewer Fund	40,502	43,776	40,128
TOTAL	85,177	93,384	87,251

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

Included in the General Fund investments are amounts that are externally restricted for specific purposes, i.e. contributions and unspent grants. In addition, there are amounts that are internally restricted by Council. The following table provides details of all funds by restrictions:

Table 2: Investments by Restriction
Source of Funds	Value December 2020
Total cash and Investments	$87,251,459
External Restrictions as at September QBRS	$64,268,663
Internally Restrictions as at September QBRS	$9,888,081
Unrestricted funds	$13,094,715

Legal /Policy

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

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

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

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

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

6: Strong, Consultative Leadership

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

6.12.5: Improve the provision of corporate financial services

Environment and Climate Change

TCorp has provided BVSC with their Investment Stewardship Policy (attached to the report to Council report on 31 January 2018).

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

Council revoked the Cash Management and Investment Strategy (6.07.3) on 25 November 2020. Our Finance team has commenced investigation of investment options available outside of the current TCorp strategy. Further options will be explored over the coming months.

Economic

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

Risk

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

Social / Cultural

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

Attachments

1 ⇩. Bega Valley Shire Council - CAFT December Statement

2 ⇩. Bega Valley Shire Council - SCFT December Statement

Contact	Phone	Email	Website
Bega Valley Shire Council	(02) 6499 2222	council@begavalley.nsw.gov.au	www.begavalley.nsw.gov.au
ICAC	8281 5999 Toll Free 1800 463 909	icac@icac.nsw.gov.au	www.icac.nsw.gov.au
Office of Local Government	(02) 4428 4100	olg@olg.nsw.gov.au	http://www.olg.nsw.gov.au/
NSW Ombudsman	(02) 8286 1000 Toll Free 1800 451 524	nswombo@ombo.nsw.gov.au	www.ombo.nsw.gov.au

Item no & subject
Pecuniary Interest	In my opinion, my interest is pecuniary and I am therefore required to take the action specified in section 451(2) of the Local Government Act 1993 and or any other action required by the Chief Executive Officer.
Significant Non-pecuniary conflict of interest	– In my opinion, my interest is non-pecuniary but significant. I am unable to remove the source of conflict. I am therefore required to treat the interest as if it were pecuniary and take the action specified in section 451(2) of the Local Government Act 1993.
Non-pecuniary conflict of interest	In my opinion, my interest is non-pecuniary and less than significant. I therefore make this declaration as I am required to do pursuant to clause 5.11 of Council’s Code of Conduct. However, I intend to continue to be involved with the matter.
Nature of interest	Be specific and include information such as : · The names of any person or organization with which you have a relationship · The nature of your relationship with the person or organization · The reason(s) why you consider the situation may (or may be perceived to) give rise to a conflict between your personal interests and your public duty as a Councillor.
If Pecuniary	Leave chamber
If Non-pecuniary (tick one)	Disclose & vote Disclose & not vote Leave chamber
Reason for action proposed	Clause 5.11 of Council’s Code of Conduct provides that if you determine that a non-pecuniary conflict of interest is less than significant and does not require further action, you must provide an explanation of why you consider that conflict does not require further action in the circumstances
Print Name	I disclose the above interest and acknowledge that I will take appropriate action as I have indicated above.
Signed

Account	Description	Actual	Budget	Available
10310.2000.2003	Training & Development Courses	341.64	9,000.00	8,658.36
10310.2000.2202	Travel and Accommodation Costs	168.17	11,000.00	10,831.83
	Totals	509.81	20,000.00	19,490.19

Council	27 January 2021
*Item 11.2 - Attachment 1*	5.1 Tathra urban kerb design Page 13

Council	27 January 2021
*Item 11.6 - Attachment 2*	Land Divestment Options Lot 13 DP 1107310 & Lot 18 DP 255593 Corner of Mecklenberg Street & Minyama Parade Bega

Council	27 January 2021
*Item 11.8 - Attachment 1*	Council report dated 13 March 2019 Land Divestment Options - Lot 66 DP 1171407 Ravenswood Street, Bega

Council	27 January 2021
*Item 11.8 - Attachment 2*	Land Divestments Options Lot 66 DP 1171407 Ravenswood Street Bega

Council	27 January 2021
*Item 11.9 - Attachment 1*	Council report dated 11 November 2020 - Bega saleyards

Council	27 January 2021
*Item 12.2 - Attachment 1*	Attachment - Towards a Fairer Rating System - Proposed responses for OLG Feedback Form

Council	27 January 2021
*Item 12.3 - Attachment 1*	NSW Electoral Commission Cost Estimate Local Government Election (2020)

Council	27 January 2021
*Item 13.1 - Attachment 1*	Bega Valley Shire Council - CAFT December Statement

Council	27 January 2021
*Item 13.1 - Attachment 2*	Bega Valley Shire Council - SCFT December Statement

Ordinary

Meeting Notice and Agenda

To:

Copy:

Live Streaming of Council Meetings

Publishing of Agendas And Minutes

Ethical Decision Making and Conflicts of Interest

A guiding checklist for Councillors, officers and community committees

Ethical decision making

Conflict of interest

The test for conflict of interest

Identifying problems

Local Government Act 1993 and Model Code of Conduct

Agency advice

Disclosure of pecuniary interests / non-pecuniary interests

Agenda

Statement of Commencement of Live Streaming

Acknowledgement of Traditional Owners of Bega Valley Shire

1 Apologies and requests for leave of absence

2 Confirmation Of Minutes

3 Declarations

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

5 Petitions

6 Mayoral Minutes

7 Urgent Business

8 Staff Reports – Planning and Environment

9 Staff Reports – Community, Culture and Leisure

10 Staff Reports –Economic Development and Business Growth

11 Staff Reports – Infrastructure Waste and Water

12 Staff Reports – Governance and Strategy

13 Staff Reports – Finance

14 Councillor Reports

15 Rescission/alteration Motions

16 Notices of Motion

17 Questions with Notice

18 Questions without Notice

19 Confidential Business

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

Statement of Re-Commencement of Live Streaming

20 Noting of Resolutions from Closed Session

21 Declassification of reports considered previously in Closed Session

Council

27 January 2021

Staff Reports – Infrastructure Waste And Water

27 January 2021

11.1. RFT 2021 – 61 Plumb Motors Carpark upgrade

Officer’s Recommendation

Attachments

Council

27 January 2021

Staff Reports – Governance And Strategy

27 January 2021

Staff Reports – Finance

27 January 2021

17.1. Cr Allen - Painting of water tank in Merimbula

Staff Response

Attachments

17.2. Cr Bain - Eden Lime Incident - Contractor Engagement (secondary question)

Staff Response

Attachments