Agenda of Council - 12 May 2021

Council 12 May 2021

Item 11.1

11.1. Community Project Proposals

This report outlines information and options for the management of Community Project Proposals moving forward.

Director Assets and Operations

Officer’s Recommendation

1. That the report be received and noted.

2. The Community Project Proposal procedure be amended to reflect option three in the report being that:

Community project proposals are not reported to Council quarterly but are managed by:

a. Minor projects continue within the current process with initial assessment by Council officers with approval delegated to the relevant Director.

b. Major projects are considered and included within the development and consultation of the annual operational plan.

Executive Summary

The Community Project Proposal (CPP) process seeks to provide a consistent framework for Council to receive and consider a wide range of projects proposed by the community. These projects can range from minor asset renewals to major new works projects. The information in the attached sheet contains data of community project proposals received from 2015 – April 2021. The report includes recommendations/options moving forward regarding the administration, reporting and project management of the CPP’s.

Background

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

The CPP process was developed as it had been identified that a number of projects had been delivered on Council managed land without BVSC knowledge or approval.

Since 2015 when a formal process, procedure and application form was introduced there have been;

· 160 submitted

· 71 completed

· 56 supported but not yet completed &

· 21 CPP’s request further info/planning/underway/deferred

· 12 not supported

Further information can be found in the BVSC Community Project Proposal Summary Table attached.

The community project proposal process is broken into three stages. The first is the administration phase, the second stage is the planning phase and the third is project delivery phase. Both the planning stage and project delivery stage can be completed solely by the applicant, in conjunction with Council or wholly managed by Council.

Projects can vary depending on scale, approvals complexity, community interest and consultation levels. In general terms projects are can be classified into Minor and Major Projects.

Major Projects are those projects that are complex, creating new asset/s, will result in changed use or amenity and/or will require resourcing and support from Council, and/or contain barriers for delivery such as planning requirements, REF, AHIPS, native title assessment and due diligence are considered as major projects. Some examples include Merimbula basketball/netball courts, Merimbula Lake Street Walk, Tathra Headland Walk, Evans Park amenity block (Kalaru) and Lawrence Park building upgrade.

Minor Projects are proposals that are considered straight forward. They are of lower value, are directly related to repairs or renewals of existing assets or are directly related to planned works. These are often reviewed and approved by Council officers. For these types of minor projects, letters of ‘in principle’ support are often provided to applicants with General Manager approval to enable them to progress with grant funding applications. This enables groups to proceed with those straightforward proposal works in a timely manner and are reported to Council in the following quarterly meeting. Some examples include Tathra Skatepark repairs, Bermagui cricket nets upgrade, water bubblers at Pambula & Bega River, memorial seats, swimming pool covers / starting block renewals and scoreboard/goal post upgrades at various sportsgrounds.

Previous Actions:

Due to a very high emerging capital works program identified in the adopted operational plan for 2019/20 Council, at the 28 August 2019 meeting, resolved to defer CPP projects for a year. Council continues to be very successful with grant funding applications which again will see a very high capital works program over the coming years.

There are several benefits to Council of the CPP process being:

· Assist with BVSC asset renewal program.

· Enable community groups to advocate for external funding.

· Direct mechanism to demonstrate community interest for projects.

· Enables Council and Councillor understanding, management, increased control of works on Council managed land.

Options

In noting the benefits of the CPP process and the resource requirements to administer plan and deliver within the CPP process the question becomes how to continue with the positive outcomes without negatively and unreasonably impacting on other projects that have been prioritised by Council.

1. The community project proposal procedure continues in current form. Noting the staffing resource requirements and the effects CPP’s have on delivery of BVSC operational and strategic plan projects.

2. Community project proposals continue to be presented to Council but reduced from quarterly reporting to biannual or annual reporting.

3. Community project proposals are not reported to Council quarterly but are managed by:

c. Minor projects continue within the current process with initial assessment by Council officers with approval delegated to the relevant Director.

d. Major projects are considered and included within the development and consultation of the annual operational plan.

Option 3 is recommended.

Community and Stakeholder Engagement

Engagement undertaken

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

There is often extensive engagement between Council staff and community groups prior to CPP’s being submitted as well as during project delivery.

Engagement planned

The community project proposal procedure will be updated to reflect the outcome of this report. Information and the updated procedure document will be published on Councils website.

Financial and Resource Considerations

With an increase in the complexity of the Community Project Proposals and the management of the projects by BVSC, staff resources have been reduced and this was noted with the deferral of CPP’s for a year (Aug 2019 – Aug 2020) for staff to manage current workload.

With the introduction of regulations, such as native title assessments, the workload of officers has increased in the planning stage of the CPP process. Increased grant opportunities by community groups has resulted in more enquiries and liaison before submission, as well as increased request by community of letters of support, planning requirements information and site data information.

The expectation of community groups of the timeline of completion of projects is that the project will be commenced and completed shortly after the Council resolution has been made. The BVSC project officers have the annual operating plans works and grant project commitments, with the CPP’s then considered, which is reflected in 77 CPP’s yet to be completed.

Staff resources are needed in each stage of the CPP process. As an example, in 2020, 28 minor and major CPP applications were presented to Council. It is estimate they require the following staff resources:

· administration / application stage - 121 staff hours;

· the planning stage - 380 staff hours;

· the project management/delivery by BVSC staff - 662 staff hours;

· Totalling 1163 hours. (166 days; which is equivalent 69% FTE position)

With the volume of applications and scale of projects, the current arrangement is having an impact on delivery of the adopted operational plan projects. It is not sustainable without that impact being acknowledged and accepted and the resource requirements being understood.

Legal /Policy

Council’s Procedure 4.01.3 Community Project Proposals.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Community Strategic Plan goal

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

Service Outputs

Number applications for Community Project Proposals

This report provides and overview of the CPP process, benefits, resource requirements and effects it is having on other operational plan projects.

Environment and Climate Change

As part of the community project proposal process applicants are expected to outline any environmental benefits or risks associated with their proposals including applications in response to natural disasters.

Some projects can trigger the need for environmental and or cultural heritage assessments. This work can require specialist consultancy and be an unexpected requirement for the applicant; however, these assessments are necessary to see that the project will not have any unintended consequences on the surrounding area.

Projects or works that require environmental or cultural approvals are inevitably more complex and will require a high level of staff involvement to guide applicants through the requirements for approvals.

Economic

The community project proposals outline to varying degrees the economic benefits associated with the respective proposals. Some of the CPP’s have been tourism and recreation related and aimed at enhancing the tourism experience within the Shire.

Risk

The CPP process looks to manage risk in terms of ongoing maintenance and renewal, compliance, work health and safety and environmental management in particular.

Social / Cultural

The community project proposal process provides an opportunity for community groups to present ideas and projects that enhance the social and cultural richness of our Shire for Council consideration. This is a key benefit of the CPP process and some of the projects referred to in this report outline the social and cultural benefits that can result.

Attachments

1 ⇩. Community project proposal summary sheet Council report 12 May 2021

Council 12 May 2021

Item 11.2

11.2. RFT 2021-88 Berrambool Pedestrian Bridge Construction

This report details the outcome of evaluation of Tender RFT 2021-88 for Berrambool Pedestrian Bridge Construction and recommends that Council decline to accept the submitted tenders and enter into negotiations with the lowest conforming Tender.

Director Assets and Operations

Officer’s Recommendation

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

2. That authority is delegated to the General Manager to execute all necessary documentation in relation to the request for tender RFT 2021-88.

3. That all tenderers be advised of Council’s decision.

4. That the General Manager is delegated to negotiate with funding bodies to rearrange project funding details for the Local Roads and Community Infrastructure Program and to fund potential shortfalls through reserves with a further report to be brought Council to finalise detailed funding arrangements

Executive Summary

The timber pedestrian bridge over Merimbula creek connecting the Berrambool Sports complex and Main Street, Merimbula shopping precinct is unsafe, irreparable, therefore closed to the public and requires replacement.

Following survey, geotechnical and environmental assessment, Council engaged an experienced engineering consultant to carry out an options evaluation and produce a replacement bridge design during 2020 and invited tenders for construction March 2021.

Federal funding has been secured to cover the costs of the replacement bridge through the Local Roads and Community Infrastructure Program (LRCIP).

Public tenders for construction were invited via VendorPanel in March 2021 and three submissions were received when the tender period closed on 14 April 2021.

Background

In the early 1990s, community groups constructed the timber pedestrian bridge to link the Merimbula business district with the Berrambool Sports complex.

Despite maintenance by Council and repairs to parts of the bridge from time to time, deterioration of timber elements of the bridge has necessitated replacement. The existing structure is a four-span timber bridge which is now closed to the public as the structure is unsafe.

During 2020, the adjacent access road servicing the rear of Woolworths and Aldi supermarkets was completed and a portion of the land was dedicated as public road reserve. As part of this development, work was undertaken to stabilise the existing embankment, a new concrete abutment and concrete stairs and footpath linkages to which the Berrambool pedestrian bridge connects.

There have been community enquiries both formal and informal, including from sports and Lions Clubs, regarding the bridge and expressing support for repairs and/or replacement in recent times.

Funding has been made available through the Federal Government Local Roads and Community Infrastructure Grants which need to be expended in 2021.

Options

There are several options to Council including:

· Proceed with the replacement of the existing bridge with a concrete structure as detailed in the RFT documentation

· Demolish the existing timber bridge and to not proceed with the bridge replacement severing links between Berrambool and the Merimbula shopping precinct

· Look to repair the existing timber structure with like for like material which will provide an ongoing maintenance burden for Council and require funding variations

· Or other options as raised by Councillors

Community and Stakeholder Engagement

Engagement undertaken

Limited public consultation has taken place other than signage notifying the public of the closure of the footbridge due it being unsafe.

There have been community enquiries both formal and informal, including from sports and Lions Clubs, regarding the bridge and expressing support for repairs and/or replacement in recent times.

The project has been discussed with members of the Access Improvement Advisory Committee informing that there are limitations on the level of access achievable due to site constraints.

Engagement planned

A Communication and Engagement Plan will be prepared for the project. Council will coordinate with the Contractor to ensure that the community is kept informed of progress and opportunities to be involved post construction with soft landscaping and related features.

Financial and Resource Considerations

The project is currently funded by the Federal Government Local Roads and Community Infrastructure Grant, which must be expended by December 2021.

The project is currently estimated to be $130,000 over the current funding available. The project is interconnected with the Auckland Street Bega Carpark Project, the Tathra Beach Kiosk Project and the Barclay Street Sporting Precinct project (as a result of a report to the 21 April 2021 Council meeting).

Although the overall estimated cost of the above four projects is in excess of the grant funding available for the projects, there may be an opportunity to reallocate restricted reserve funds to offset the overall funding shortfall for the projects. It is recommended that Council receive a further report detailing the recommended reserve balancing and endorse the projects proceeding noting that the reserves that will be utilised for funding shortfalls will be a combination of the Buildings SV, developer contributions and asset renewal reserve.

Item	$ Excl GST
Expenditure Detail
Total estimated project cost	$500,000
Total Expenditure	$500,000

Source of Funds
NSW Government - Local Roads and Community Infrastructure Grant	$370,000
Total income available	$370,000

Total Project Capital Cost	$500,000
Total Available Construction Funding	$370,000
Project Funding Shortfall	$130,000

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts	$ Excl GST
Capital Investment	0
Annual maintenance and operational costs	$1,000
Depreciation costs	$5,000 p.a.
User charges (annual income)	0

Legal /Policy

The tender process complied with the Local Government Act 1993 and Council procedures.

The pedestrian bridge is located on Council owned property, being Lot 232 DP 1263284, which is classified as road reserve and Council operational land, and the Berrambool Sports complex Lot 7 DP 260899 zoned E2 over the Merimbula Creek reserve. There is no Native Title or Aboriginal Land Claims over Council owned land.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The construction of Berrambool Pedestrian Bridge aligns with the Community Strategic Plan, Outcome 5: Connected Communities:

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

The project is externally funded by the NSW State Government.

Environment and Climate Change

A Review of Environmental Factors (REF) has been prepared to comply with Section 5 of NSW Environmental Planning and Assessment Act 1979.

The Contractor is also required to produce an Environmental Management Plan, which will be monitored by Council and project staff.

Economic

The new pedestrian bridge will benefit the local community, with funding approved and complementing the greater masterplan for the Berrambool Sports Complex.

Risk

The main risk for Council is delivering the project works within budget. Value Engineering (VE), reviewing the technical specification and construction method or reducing some elements from the project will be required to deliver the project within the funding budget.

Social / Cultural

The new pedestrian bridge will maintain and improve amenity for the local community by reinstating the convenient dedicated pedestrian link to the Merimbula shopping precinct from the Berrambool Sports Complex in lieu of the much longer connection via Berrambool Drive.

Attachments

1 . Confidential Attachment to report RFT 2021 88 Berrambool Pedestrian Bridge Construction (Confidential - As this attachment contains information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business as per Section 10A(2)(c) of the Local Government Act 1993.

Although the above relates more explicitly to the discussion of closed business, it also forms part of the basis of justification as to why information relied upon in informing the public decisions made by Council are kept confidential. To consider this confidential material in open Council would be, on balance, contrary to the public interest (as defined in Section 14 of Government Information Public Access (GIPA) Act 2009) as it would potentially disclose private business information provided 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 12 May 2021

Item 11.3

11.3. RFT 2021-51 Murrabrine Bridge Construction

This report details the outcome of evaluation of Tender RFT 2021-51 for Murrabrine Bridge Construction and recommends award to the preferred tender.

Director Assets and Operations

Officer’s Recommendation

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

2. That Council accept the tender from (insert) in relation to contract for the works described in Tender RFT 2021-51 Murrabrine Bridge Construction, in the amount of $(insert) (including GST), subject to variations, provisional sums and prime cost items.

3. That authority be delegated to the General Manager to execute all necessary documentation.

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

Executive Summary

The timber bridge on Wandella Road over Murrabrine Creek at Cobargo is the only road link to the Wandella and Yowrie communities. The bridge is at the end of asset life and requires replacement.

Over a number of years key stakeholders and various community groups have raised the need to replace the Murrabrine Bridge due to safety concerns. This need became critical following the 2019/2020 Black Summer Bushfires when significant damage to the bridge was sustained.

Following survey, geotechnical investigations and environmental assessments, Council engaged an experienced engineering consultant to carry out an options evaluation and produce a replacement bridge design during 2020 and invited Tenders for construction March 2021.

Federal and State funding has been secured to cover the cost of the replacement bridge.

Public Tenders for construction were invited via VendorPanel in March 2021 and four submissions were received when the Tender period closed on 14 April 2021.

Background

The timber bridge on Wandella Road over Murrabrine Creek was constructed as an all timber bridge in 1959 by NSW Department of Main Roads. Since last century, a range of structural and heritage assessments, testing, remedial actions and works have been undertaken by Council to extend longevity and maintain functionality.

The current Murrabrine Bridge is now a four-span composite bridge with partial hardwood timber decking and reinforced concrete abutments to north and south. Deterioration of the timber support structures necessitated replacement with steel piles, piers, headstocks and bracing in 2012/2013 and the northern abutment in concrete in 2017.

Additionally, the decking has been partially replaced, with the two spans nearest the highway converted to plywood decking and the remainder being transverse decking with timber running boards. Little of the existing bridge remains as original.

The bridge is located on a vital service and emergency access route. Wandella Road provides the only practical road link from Cobargo and the Princes Highway to the public school, fire shed, primary producers (timber, dairy and beef) and the Wandella and Yowrie communities. Bega Cheese advises the bridge provides access for the delivery of around seven million litres of milk annually.

Notwithstanding the repair and remediation works, recent testing and inspections confirm that the bridge is now at the end of asset life.

Council applied for financial assistance as far back as 2016 to replace the Murrabrine Bridge. Funding has been obtained from both Federal and State governments to cover the capital cost of the replacement bridge.

Following survey, geotechnical investigations, environmental assessments including Review of Environmental Factors, Council engaged an experienced engineering consultant to carry out an options evaluation and produce a replacement bridge design during 2020 and invited Tenders for construction March 2021.

Following a well-attended tenderer’s mandatory site briefing, four Tenders were received when the submission period closed on 14 April 2021. Evaluation on basis of lump sum cost, tender qualifications and non-price criteria including, in particular ability with community liaison, experience and capability resulted in a clear best option.

The Contract stipulates that, apart from very short periods that are pre-advised and approved, at least one lane for through traffic must be open at all times during the Contract.

Options

Council has considered various options for the replacement of Murrabrine Bridge over several years and has progressively upgraded the bridge culminating with the construction of the concrete northern abutment in 2017.

In order to create a resilient structure to both flood and fire it is felt that a concrete structure would best serve to community over the life of the asset.

Community and Stakeholder Engagement

Engagement undertaken

Council’s Community Development and Engagement team who conducted Bushfire Recovery Sessions with Cobargo and the surrounding communities during May – November 2020 informally raised the need for the Murrabrine Bridge to be replaced in the near future with community support for the bridge replacement being recorded.

Engagement planned

A Communication and Engagement Plan has been prepared for the project. Council will coordinate with the Contractor to ensure that the community is kept informed of traffic and pedestrian adjustments and opportunities to be involved with the post project soft landscaping e.g. tree planting and the related street furniture and features.

Financial and Resource Considerations

Council applied for financial assistance as far back as 2016 to replace the Murrabrine Bridge.

Commonwealth Department of Infrastructure, Transport, Regional Development and Communications (DITRLC) funding was approved 16 December 2019 with agreement signed in October 2020 for $2,300,000.

Additional funding became available on 10 February 2021 via the NSW Government Fixing Country Bridges programme to complete the funding requirements.

Item	$ Excl GST
Expenditure Detail
Total estimated project cost	4,600,000
Total Expenditure	4,600,000

Source of Funds
DITRLC Federal Funding	2,300,000
Fixing Country Bridges NSW Government Funding (up to $5,800,000)	2,300,000

Total income available	4,600,000

Total Project Capital Cost	4,600,000
Total Available Construction Funding	4,600,000
Project Funding Shortfall	0

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts	$ Excl GST
Capital Investment \| Renewal, Upgrade, New	0
Annual maintenance and operational	$3,000 p.a
Depreciation costs	$40,000 p.a.
User charges (annual income)	0

Legal /Policy

The tender process complied with the Local Government Act 1993 and Council procedures.

The new bridge will comply with National Heavy Vehicle Regulator (NHVR) heavy vehicle requirements.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The construction of Murrabrine Bridge aligns with the Community Strategic Plan, Outcome 5: Connected Communities:

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

The project is externally funded by NSW State Government and the Federal Government.

Environment and Climate Change

A Review of Environmental Factors (REF) has been to comply with Section 5 of NSW Environmental Planning and Assessment Act 1979 have been carried out

The Contractor is also required to produce an Environmental Management Plan, which will be monitored by Council and project staff.

Economic

Murrabrine Bridge is located on a vital service and emergency access route. Wandella Road provides the only road link from Cobargo and the Princes Highway for the Wandella and Yowrie timber, dairy and beef primary producers. Bega Cheese advises the bridge provides access for the delivery of around seven million litres of milk annually.

Risk

Given the economic and social impacts of significantly reduced road and load capacity occurring in the short term and the necessity to completely close the existing bridge to enable upgrade, plus the increasing possibility of failure, the risk of not replacing the Murrabrine Bridge is deemed unacceptable.

Social / Cultural

Murrabrine Bridge is the only practical road access route for the Wandella and Yowrie communities to Cobargo and the Princes Highway and for the public school, church, halls and fire shed.

Not only being a vital community asset for Cobargo, the timing of this bridge project will be a strategic boost for local morale and economy post the 2019 Black Summer Bushfires.

Attachments

1. Confidential Attachment to report RFT 2021-51 Murrabrine Bridge Construction (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.

Council 12 May 2021

Item 11.4

11.4. RFT 2021-91 Water and Sewerage Services business maintenance and administration accommodation

Staff recommend award of the construction tender for the proposed Water and Sewerage Services maintenance, operations and administration depot. This facility is an early milestone for the NSW Safe and Secure Water Program funded Bega-Tathra Water Treatment Plant project.

Director Assets and Operations

Officer’s Recommendation

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

2. That Council accept the tender for RFT 2021/91 Water and Sewerage Services business maintenance and administration accommodation from [to be inserted] for $[to be inserted] as outlined in Confidential Attachment 1.

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

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

Executive Summary

The new Water and Sewerage Services business maintenance and administration accommodation is a purpose-built facility developed to consolidate Council’s water and sewerage group to a single site. This will create efficiencies within the team and improve our resilience to natural disasters and events like the recent COVID-19 pandemic.

This project also contributes to the Zingel Place office reconfiguration and Gallery project by freeing up space currently occupied by WaSS office-based staff.

Background

Council’s Water and Sewerage Services group operate out of 5 sites spread from North Bega to Pambula, including considerable portions of both the Zingel Place administration office and the Maher Street depot.

The reconfiguration of the Zingel Place building to accommodate the Gallery upgrade has identified the need to reduce the number of staff working from the Zingel Place building and moving WaSS from the building is a key aspect of creating space. The area freed up by moving the maintenance teams from Maher street will create space for some staff currently working from Zingel Place to relocate to Maher Street.

The need for this facility and its relationship with the Bega WTP project were identified as the Bega WTP project was being scoped and funding applications were being completed. Given the relationship with the WTP, this development has been included in the scope of our funding with DPIE Water through the Safe and Secure Water Program (SSWP).

This facility will include a purpose-built workshop and will allow for greater resilience to emergency situations and more efficient and economical maintenance of large equipment currently sent away for repairs. Due to our regional location between Sydney and Melbourne, this often comes at considerable cost and time penalties. It will also incorporate a new control centre to allow more efficient management of our water infrastructure during events such as the recent fires, where maintaining water supply for firefighting purposes is essential.

GHD were engaged as Council’s Owner’s Engineer for the WTP design and the business maintenance and administration accommodation design and technical specification development. This has ensured that the two developments (located on a common site) are sympathetic to each other and make full use of the shared resources and opportunity – including utilisation of the roof structure of this development to support the energy demands of the WTP with the inclusion of a significant rooftop solar array. Installation of the solar array itself will form part of the WTP scope.

A detailed design and construct approach for this project was chosen to allow for Council to define the needs and non-negotiables of the facility, while providing opportunity for the construction contractor to provide buildability input to help manage both the time and cost constraints of the project. The tender was advertised in March 2021 with the tender evaluation being completed in April 2021. Three conforming tender submissions were received and assessed in accordance with BVSC’s tendering procedures based on price and non-price criteria. Further detail on the Tender evaluation process is provided in the attached confidential memo.

Options

1. Accept the preferred tender price to build the new depot on otherwise land locked and unused land already owned by BVSC and consolidate leases.

2. Stay in Zingel Place and retain other leases as required to support maintenance and operations, noting that this constrains the Gallery redevelopment

3. Continue to explore other lease options.

Note that Options 2 & 3 would result in losing the $2.5m state funding for this component of the project.

Community and Stakeholder Engagement

Engagement undertaken

Face to Face meetings with neighbouring land holders was conducted in 2020 to introduce the idea of developing the site and to introduce the project officer as a point of contact should they have any enquiries. This also established acceptable access to the site.

To improve the flow and effectiveness of site access for both this development and the WTP – an eastern access option has been identified to enable through traffic from the WTP and direct access to the administration and maintenance accommodation. Several options have been considered for this access, including collaboration on alignment selection with the owner of the preferred lot. This has included multiple face to face meetings, discussion of options and strategies to manage impact on their use of land.

Broader community engagement has included the press release of 25/2/2021 “Water and jobs flow in treatment plant development”.

As key funding partners of this project, both the Local State Members office and DPIE have been kept informed of progress of this project milestone.

Engagement planned

Follow up face to face meetings with neighbours will be conducted following award of contract.

Separate engagement will also continue regarding the WTP as the project progresses.

Financial and Resource Considerations

Item	$ Excl GST
Expenditure Detail
Estimated Water and Sewerage Services business maintenance and administration accommodation	$5.9M
Through road for WTP to Boundary Rd	$100k
Total Expenditure	$6M

Source of Funds
Sewer fund	$1.75M
Water Fund	$1.75M
Safe and Secure Water Program	$2.5M
Total income available	$6M

Estimated Total Project Capital Cost	$6M
Total Available Construction Funding	$6M
Project Funding Shortfall	$0

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts	$ Excl GST
Capital Investment \| Renewal, Upgrade, New	$6M
Annual maintenance and operational costs	$50 k
Depreciation costs	$150 k
User charges (annual income)

Legal /Policy

The project site is within the industrial zoned area at South Bega.

The site for the Bega WTP and this facility is currently being rezoned to SP2 ‘Infrastructure’, to better reflect the current and future use of this site.

This development is consistent with State Environmental Planning Policy (Infrastructure) 2007.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The project contributes to the following objectives in the Community Strategic Plan 2040 (CSP):

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

Goal 6: We are leaders in sustainable living and support innovative approaches to resource recovery and the production of renewable energy and food.

Further, the relocation of WaSS staff from Zingel Place and Maher street facilities is an integral part of Council’s strategy for reconfiguring the Zingel Place building to accommodate the Gallery upgrades.

Environment and Climate Change

Roof space on this facility is to be used for the installation of a solar array complimenting available roof space at the WTP, Yellow Pinch Dam Transfer Pump Station and existing reservoirs. The proposed array is sized to meet the demands of the new WTP reducing operational costs and energy required from the electrical grid.Additionally, the use of water sensitive urban design principals has been integral in the design of this facility. A whole of resource cycle perspective is considered in management of storm water on the site and opportunities to limit demand through recovery of rainwater and grey water from the building.

Economic

Consolidation of the WaSS group will reduce our current number of sites from 5 to a single Council owned site. Council have successfully gained $2.5m in funding through the Safe and Secure Water program for this component of the Bega WTP project.

It is a significant project for our region providing valuable employment opportunities during construction. Weighting has been included in the tender evaluation plan for local outcomes.

Council is already a significant employer in the Bega Valley and expansion of our internal maintenance capability, brings more employment opportunities for skilled fitters and electricians.

Risk

a. This facility will position WaSS staff to better manage environmental emergencies such as the Tathra, Bemboka and 2019/2020 Black Summer bushfires by providing a connected working space with better visibility of our whole network allowing us to manage and respond to faults and threats as they occur, ensuring the critical supply of water for firefighting purposes.

b. By providing the necessary space and equipment to fully utilise the skills of our maintenance personnel, we will improve our resilience to regional and national events and ensure continuity of our service. The new workshop will provide the capability to service our larger pumps and equipment which cannot be done through the Maher Street workshop due to the lack of space and makeshift nature of that site. Currently, these pumps are sent to major centres for servicing with considerable time and costs to council. This increased internal capacity and decreased reliance on external parties will manage service interruptions compounded by situations like the 2020 COVID-19 lockdowns.

Social / Cultural

Relocating from the residential area at Maher street to an industrial area will provide social benefits for the local residents. The WaSS Technical Services team are frequently traveling between the current workshop and sites around the shire, resulting in significant traffic movements daily. To be able to lift and service pumps and equipment, crane trucks are important vehicles and account for many of these vehicle movements. The proposed site in an Industrial area is better suited to this type of facility and vehicle movements.

Attachments

1. Confidential Attachment to report RFT 2021-91 Water and Sewerage Services business maintenance and administration accommodation (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.

Council 12 May 2021

Item 11.5

11.5. Merimbula Airport - Community Advisory Group Establishment

This report has been prepared in response to the Notice of Motion raised on 31 March 2021 to receive a report on the establishment of a community advisory group as part of the review and updating of the Merimbula Airport Masterplan.

Director Assets and Operations

Officer’s Recommendation

1. Council note the contents of this report.

2. Council establish a standing community advisory group for Merimbula Airport.

3. Council endorse the attached Terms of Reference for the community advisory group for Merimbula Airport.

4. Council endorse the composition of the community advisory group for Merimbula Airport.

5. Council seek expressions of interest from community representatives for the community advisory group for Merimbula Airport.

6. Council confirm Councillor representation for the community advisory group for Merimbula Airport.

7. Council note the establishment of a standing community advisory group will involve a commitment of staff time and resources in order to provide administrative support.

Executive Summary

Council has recognised that the currently adopted Master Plan for Merimbula Airport needs to be regularly reviewed and updated to reflect the current economic climate and changing aviation legislation. The Aviation Transport Security Act and Civil Aviation Safety Authority Manual of Standards (MoS) Part 139 have recently been updated, which are key pieces of Federal legislation in managing aerodromes in Australia. Council is currently in the process of reviewing and updating the Merimbula Airport Master Plan.

As with any Master Planning process, stakeholder engagement is an important element to ensure that the Master Plan meets the wider community expectations and will inform the future direction of Merimbula Airport.

Council staff are supportive of the establishment of a community advisory group as part of the community and stakeholder engagement, which forms a key part of the review and updating of the Merimbula Airport Master Plan. Consideration could be given to extending this to a standing advisory group, noting this will involve a commitment of staff time and resources in order to provide administrative support.

Equally important in the establishment of any community advisory group is to have a clearly defined set of Terms of References, to manage the potential risk in regard to conflict of interest, confidentially and the group membership composition to ensure a balanced community representation.

A copy of a draft set of Terms of References is attached for Council’s consideration.

Background

Council is the owner and operator of Merimbula Airport; community benefit is arguably the main reason why Council owns and operates an airport. Airport operations are a vital component of the overall integrated transport network; which links the Bega Valley to both Melbourne and Sydney and to the rest of Australia.

Merimbula Airport is currently a Tier 3 Security Controlled Airport and provides Regular Passenger Transport (RPT) services to both Sydney and Melbourne through Regional Express Holdings (REX) with multiple scheduled services seven days a week.

In December 2020, Qantas commenced a Sydney to Merimbula route and committed to an additional year-round service from Melbourne to Merimbula which commenced in March 2021.

Historically, the RPT numbers at Merimbula Airport have been around 60,000 passengers (PAX) per year, with upwards of 35 flights per week prior to the COVID-19 pandemic. The impacts of COVID-19 have been dramatic and passenger numbers dropped by around 95% over the past 18 months.

However, in the first quarter of 2021 we have seen a return to our pre-COVID-19 flight schedules and now have two RPT operators servicing both the Melbourne and Sydney routes. A steady increase in passenger numbers across both REX and Qantas services have been noted.

The Merimbula Airport also provides essential links for professional, legal, specialist and medical services as well as passengers for tourism, employment and business to the small communities that make up the Bega Valley Shire. In addition, the airport provides facilities for General Aviation usage and is the home of several aviation related business.

The Airport also provides an important role in emergency services, which include air ambulance and police and this was highlighted in the Black Summer fires in 2019/2020 where the Airport played an integral role in the aerial firefighting efforts across the region.

Generally, regional aviation in Australia faces a range of long-term challenges which have been exacerbated by COVID-19 and Merimbula Airport is no different. The Airport currently has insufficient revenue to cover operating and maintenance costs, putting further pressure on Council finances.

Currently, Council charges a range of fees and charges including; aircraft landing fees, aircraft parking fees and passenger land fees, as well as having ground leases out for recreation, private and commercial uses.

The income generated from the fees and charges attempts to recover the operational costs of running the Airport however the Airport is still subsided by Council and reliant upon both State and Federal grants to upgrade infrastructure to remain compliant with Federal aviation legislation.

In the 1990s, ownership of many Australian Government-owned airports (Merimbula Airport included) was transferred to Local Governments under the Aerodrome Local Ownership Plan (ALOP). Whilst Council has been the owner of the airport since the 1990s, the facility was leased out to be managed and operated by a third-party; Airport Agencies from the late 1990’s to December 2018.

A fixed term transitional arrangement with Airport Agencies for the Management and Operation of Merimbula Airport commenced on 1 July 2016 and in March 2019 Council assumed the full legislative and compliance role of operating and managing Merimbula Airport when Bega Valley Shire Council became the Aerodrome Certificate holder. Council currently has a contractor in place; Merimbula Airport Operations who fulfills the Airport Manager Role in accordance with Civil Aviation Safety Regulations.

In 2013 Council adopted the Airport Master Plan 2033 to establish a framework for the future planning and sustainable development of Merimbula Airport. The adopted Master Plan identified several key development opportunities, including the runway extension and expansion of the terminal facilities.

In accordance with the adopted Master Plan, Council has been able to attract several funding grants from the State and Federal Government for the delivery of the following capital infrastructure upgrades at the airport:

· March 2016: Merimbula Regional Airport Emergency Fire Support Infrastructure Project - NSW State Government Funding – Restart NSW –Regional Tourism Infrastructure Program - $961,678 – completed November 2017.

· May 2016: Terminal Upgrade – Federal Government Community Development Grant - $1,201,968 with a $1,200,000 Council Co-contribution - completed in December 2019.

· October 2016: Runway Extension – NSW State Government Funding – Restart NSW – Regional Tourism Infrastructure Program - $4,391,040 – currently awaiting Development Approval to commence construction.

· December 2019: General Aviation and Commercial Precinct – NSW State Government – Drought Stimulus Package - $4,000,000 – currently in the detailed design stage.

· June 2020: Existing Runway Overlay – Federal Government - Regional Airports Program Grants - Round 1 - $4,500,000 – with a $63,000 Council Co-Contribution - currently in the detailed design stage.

As detailed above, Council has recognised that the currently adopted Master Plan needs to be regularly reviewed and updated to reflect the current economic climate and changing aviation legislation.

Options

There are several options available to Council:

1. Choose not to establish a community advisory group as part of the review and updating of the Merimbula Airport Master Plan and proceed with other community engagement and stakeholder activities.

2. Establish a community advisory group as part of the review and updating of the Merimbula Airport Master Plan with a finite lifespan (i.e.: until Council adopts the revised Master Plan).

3. Establish a standing community advisory group for Merimbula Airport noting the establishment of a standing committee will involve a commitment of staff time and resources in order to provide administrative support.

4. Other options as raised by Councillors.

Community and Stakeholder Engagement

Engagement undertaken

Considerable community and stakeholder engagement has already taken place in the planning, development and delivery of the capital infrastructure projects at the Airport. All this work will feed into the review and update of the Merimbula Airport Master Plan. There was also a previous meeting between airport lessees and the current elected Council to discuss the future of the airport.

Targeted consultation has been undertaken to date in regard to the review and updating of the Merimbula Airport Master Plan, primarily focused on the runway extension and the general aviation precinct. This has included a series of meetings with Merimbula Airport users including general aviation, existing leaseholders and RPT operators.

Initial engagement has also been undertaken with relevant State and Federal bodies, as part of the Environmental Impact Statement for the runway extension project, which forms a key part of the Master Plan update.

Engagement planned

The formation of a community advisory group would form a key part of any community and stakeholder engagement for the review and updating of the Merimbula Airport Master Plan and would form part of any future engagement activity.

Wider stakeholder consultation is planned with other key stakeholder groups, including local tourism operators, oyster growers in Merimbula Lake, the Bega Valley’s business chambers and the Local Aboriginal Land Councils.

Prior to adoption the Merimbula Airport Master Plan, the document would also be put on public exhibition for wider community feedback and comment.

Financial and Resource Considerations

Item	$ Excl GST
Expenditure Detail
Merimbula Airport Master Plan	$50,000
Total Expenditure	$50,000 (sum of all costs)

Source of Funds
Merimbula Airport Master Plan budget	$50,000
Total income available	$50,000

Total Project Capital Cost	$50,000
Total Available Construction Funding	$50,000
Project Funding Shortfall	0

Establishing a standing community advisory group for Merimbula Airport will involve both a commitment of staff time and resources in order to provide administrative support through:

• preparation and distribution of agenda for meetings;

• administrative arrangements for meetings;

• maintenance of a rolling register of interests for committee members;

• ensures all Advisory Group records are maintained in Council’s record keeping systems;

• ensure information is accessible to all committee members;

• minutes of proceedings taken and distributed in a timely manner;

• ensure relevant information is placed on Council’s website in a timely manner and kept up to date.

Legal /Policy

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

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

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

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

Council Resolution on 4 February 2015 regarding the operation of the airport created the current policy position on the ownership and operation of the Airport.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

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

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

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

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

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

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

Outcome 2: Employment & Learning Opportunities

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

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

Outcome 5: Connected Communities

5.9.1: Investigate future demand for Merimbula Airport

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

5.10.1: Manage, construct and maintain Merimbula Airport

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

The Merimbula Airport Master Plan is the major strategic driver for the Airport.

Environment and Climate Change

The update of the Merimbula Airport Master Plan will address environmental and climate change considerations within the document.

It is important to note the implementation of the capital projects which have triggered an update of the Master Plan have also addressed these issues in the form of Environmental Impact Statement and Review of Environmental Factors part of their separate Development Approval processes.

Economic

The Merimbula Airport Master Plan is a key strategic document in the development of the airport which in turn provides the necessary infrastructure to increase options for the community in regards to RPT travel and to support and stimulate General Aviation activity at the airport.

The economy of the Bega Valley has been traditionally dominated by primary industry including agriculture, forestry and fishing. While these industries are still significant, several other key sectors have can be linked to Merimbula Airport.

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

Risk

A key risk in the establishment of any community advisory group is conflict of interest, confidentially and the group membership composition to ensure a balanced community representation.

A key tool in managing these risks is establishing Terms of Reference for the community advisory group and draft Terms of Reference are attached to this report and form part of the recommendation to Council in the establishment of the community advisory group for the Airport.

Social / Cultural

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

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

The Airport also provides an important role in emergency services which include Air Ambulance and Police and this was highlighted in the Black Summer fires in 2019/2020 where the Airport played an integral role in the aerial firefighting efforts across the region.

Attachments

1 ⇩. Merimbula Airport Community Advisory Group - Terms of Reference

Council 12 May 2021

Item 11.7

11.7. Tura Beach shopping centre carpark

The Tura Beach Shopping Centre Owners Corporation have formally written to Council requesting a contribution to maintenance and repairs to the carpark surfacing within Strata Plan 40176 which adjoins Council’s Tura library development.

Director Assets and Operations

Officer’s Recommendation

1. That Council receive and note the report and attachments.

2. That Council advise the Tura Beach Shopping Centre Owners Corporation that Council cannot support a financial contribution towards the maintenance and upgrade of their privately owned carpark within Strata Plan 40176.

Executive Summary

The Tura Beach Shopping Centre Owners Corporation (TBSCOC) requested Council financially contribute to resurfacing the carpark within their privately owned development on the basis that Tura library patrons use the carpark for access to the library development. Council officers have been requested to present this to Council for consideration as there is no budget for this requested support. Council officers are of the view that the library brings investment to the adjoining shopping centre.

Background

Council purchased the old Tura Tavern located on Lot 158 DP 1140729 which adjoins Strata Plan 40176. Council have developed the site for library purposes and there is ample on-site parking located within the Council owned land parcel and a pedestrian access ramp at the front of the building from the on-site parking, however the rear library access fronts the carpark of Strata Plan 40176 which inevitably is used by library patrons. For this reason, the TBSCOC have approached Council to contribute to maintenance and repairs to the carpark surfacing within Strata Plan 40176.

The carpark is of public benefit to library and adjoining shop patrons and the TBSCOC have identified benefits to their shop keepers and businesses as a library patrons’ shop at the businesses on their visit to the library in many instances.

The TBSCOC have formally written to Council to note the use of the carpark by all users, has over the years resulted in the carpark now needing repairs that are more than just fixing potholes. The TBSCOC are seeking assistance for the cost of the repairs and have requested Council assist with the burden to ensure the longevity of carpark for the benefit of the library development and adjoining Strata Plan 40176 complex.

Options

The options available to Council are:

1. Make a financial contribution to the TBSCOC towards the maintenance and upgrade of their privately owned carpark within Strata Plan 40176.

2. Advise TBSCOC that Council do not support a financial contribution towards the maintenance and upgrade of their privately owned carpark within Strata Plan 40176.

3. Advise TBSCOC that Council wishes to progress the acquisition of an easement for a right of access over Strata Plan 40176 by way of a Section 88B instrument and plan attached to a Transfer Granting Easement.

Community and Stakeholder Engagement

Engagement undertaken

Council officers attended a site visit with representatives from the TBSCOC to discuss their concerns and advised a formal report would be presented to Council for consideration.

Following the meeting the TBSCOC sent Council several quotations for the proposed works which are attached for the information of Councillors. These quotations were reviewed and comments by Council officers in relation to the quotations received can be found under the financial section of this report.

It is confirmed patron access via the rear door is available to the public, it was closed to the public for a period of time due to COVID restrictions so to give councillors a more accurate indication of the number of visitors through the both access doors officers provide the following:

Month/year	Patron numbers – front door	Patron number – rear door
October 2019	2,907	3,074
November 2019	2,724	2,596
December 2019	1,916	1,901
October 2020	3,370	214
November 2020	2,858	191
December 2020	1,969	126
January 2021	3,467	176
February 2021	2,954	205
March 2021	2,774	262

It is noted that signage has been erected in the private carpark directing library patrons to use the lower Council carpark which may have resulted in the reduced number of patrons through the rear door. It is also noted that as a result of COVID the rear door to the library remained closed to the public for an extended period of time which had little impact on library operations.

Engagement planned

Council officers will continue to consult with the TBSCOC regarding the Resolution of Council.

Financial and Resource Considerations

If Council were to progress the acquisition of an easement, Council would be required to bear full responsibility for all costs associated with establishing the easement, including any survey works, plan preparation, registration fees and legal costs (including the landowners reasonable legal costs capped at $1,500). All costs associated with creation of the easement are currently unfunded and if Council resolved to proceed on this basis funding would need to be identified.

A formal valuation would need to be obtained from a registered valuer to determine the compensation payable to the landowners pursuant to the provisions of the Land Acquisition (Just Terms Compensation) Act 1991 (NSW).

Council staff and external legal panel providers will be required to finalise the relevant documentation to complete the acquisition.

If Council resolve to provide the TBSCOC with a financial contribution towards the maintenance and upgrade of the carpark funds would need to be taken away from other source.

The TBSCOC have provided Council with several quotations for the required works which are attached for the information of Councillors. Council officers have reviewed the quotations received and confirm the rates from each supplier seem competitive and the prices for resurfacing the whole complex are assessed as reasonable based on the scope of works provided by the TBSCOC. It should be noted that with the static turning stresses of vehicles related to a carpark, a hot applied 14/7mm double seal is the preferred quoted option but it does still come with aggregate stripping issues and potential bleeding of the bitumen. Council officers also note there is also several kerb defects and a stormwater pit issue that should be repaired prior to these works commencing.

The ideal treatment for this carpark would be by heavy patching of the failures followed by a 30mm asphalt overlay throughout the entire complex. This would provide a stronger and more homogeneous surface with increased longevity but comes at a higher initial cost.

If Council were to resolve to contribute to the proposed works Council officers suggest it be monetary only and not have any further any involvement with procuring or managing the works at the site.

Legal /Policy

It is a requirement under the Local Government Act 1993 (NSW) that Council resolve to acquire land and interests in private property. If Council resolve to acquire an easement over Strata Plan 40176 it would proceed pursuant to the provisions of the Land Acquisition (Just Terms Compensation) Act 1991 (NSW).

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The proposal by TBSCOC is unfunded and would have implications on public car parking works which would have to reduce as a result if Council resolved to contribute to these works.

Environment and Climate Change

There is no environment and climate change matters associated with the proposal from TBSCOC.

Economic

As mentioned above it is the view of staff that the location of the library encourages patrons to also shop at the closely located shops.

Risk

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

· Reputational risk in relation to the community's view on how Council is handling the proposal from TBSCOC;

· Financial risk in relation to the proposal from TBSCOC for Council to make a financial contribution towards private car park works which as a result would reduce public car parking works Council is committed to do.

Social / Cultural

There are no social / cultural matters associated with the proposal from TBSCOC.

Attachments

1. Car parking resurfacing quotations from Tura Beach Shopping Centre Owners Corporation (Confidential - As this attachment contains commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret as per Section 10A(2)(d) of the Local Government Act 1993.

Although the above relates more explicitly to the discussion of closed business, it also forms part of the basis of justification as to why information relied upon in informing the public decisions made by Council are kept confidential. To consider this confidential material in open Council would be, on balance, contrary to the public interest (as defined in Section 14 of Government Information Public Access (GIPA) Act 2009) as it would potentially disclose private business information provided and would also impact Council’s position in relation to its consideration. 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.

Council 12 May 2021

Item 11.8

11.8. Proposed transfer of Bega Pioneers Museum

Council has received a formal request from Bega Valley Historical Society Incorporated for the transfer of the Bega Pioneers’ Museum (being Lot 1 DP 787591) located at 87 Bega Street, Bega.

Director Assets and Operations

Officer’s Recommendation

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

2. That a restriction on the use of land be registered on the title of Lot 1 DP 787591 prior to transfer in order to protect the value of the asset for the provision of a public museum in Bega and prior to any future sale of the asset Council’s formal consent must be obtained.

3. That Council enter into a formal Deed of Agreement with Bega Valley Historical Society Incorporated which outlines the potential lifting of the restriction on the use of land to allow an unencumbered transfer, provided that Bega Valley Historical Society Incorporated pay Council the unimproved land value of the property at the time of any sale.

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

5. That all costs associated with the divestment, including Council’s legal costs be borne by Bega Valley Historical Society Incorporated.

6. That Bega Valley Historical Society Incorporated be advised of Council’s decision.

Executive Summary

As outlined in the attached report from Council’s Ordinary Meeting of 15 March 2017, the Bega Valley Historical Society Incorporated (BVHS) have provided evidence which substantiates their claim the museum building was purchased via a fully repaid loan and is held in Trust by Council on their behalf only. On this basis a Council Resolution is being sought to transfer BVHS the title for Lot 1 DP 787591 as Council does not have any budget allocated for the renewal of this asset.

Prior to any transfer in title, it is suggested a restriction on use of land be registered on the title for Lot 1 DP 787591 to ensure the proceeds of any future sale of the land by BVHS are reinvested for the benefit of the local community.

Background

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

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

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

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

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

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

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

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

BVHS obtained a Building Assessment Report from Museums and Galleries NSW in May 2015 which highlighted extensive remediation works required to the fabric of the building. Significant expenditure is required to carry out those works to protect the museum’s collection. Council’s building asset stock is ageing, and current funding levels are insufficient to continue to provide existing services. In order to resolve funding shortfalls, Council should identify assets surplus to needs for disposal or divestment.

As BVHS were no longer proceeding with the transfer of ownership of the Bega Pioneers’ Museum, Council resolved at its Ordinary Meeting of 25 November 2020 as follows:

That Council enter into a formal tenure arrangement with the Bega Valley Historical Society Incorporated for their occupation of the Bega Pioneers’ Museum (being Lot 1 DP 787591) located at 87 Bega Street, Bega, for an annual rental fee in line with Council’s adopted minimum fee.

In accordance with the resolution, Council officers prepared a formal licence agreement for execution by BVHS. As a result, BVHS engaged legal representative to formally write to Council proposing the property is now transferred to the BVHS for the sum of $1.00 free of any restrictive covenants or conditions. All valuation costs and stamp duty itself are to be borne by the BVHS, with each party paying their own legal fees in relation to the transfer.

As outlined in the attached report from Councils Ordinary Meeting of 15 March 2017, BVHS wrote to Council on 14 September 2015 seeking Council’s consideration to transfer ownership of the asset. The matter was the subject of a Councillor workshop in November 2015, at which time the preference of councillors was for the asset to remain in Council’s ownership to ensure it was retained on behalf of the community. There is no item registered in the second schedule of the title which indicates it is held in Trust only, therefore to protect the future of the community asset Council resolved to transfer ownership of the asset to BVHS with a restriction on the title by Bega Valley Shire Council in order to:

a) protect the ongoing use of the building for the purpose of a public museum;

b) prevent any future sale of the asset without Council’s formal consent.

This approach is still recommended but it is suggested that this be on a land only basis as the asset is ageing and nearing the end of its useful life so any value in the building in years to come will be as a result of the BVHS holding ownership. It is proposed that Council enter into a formal Deed of Agreement with BVHS which outlines the potential lifting of the restriction on use of land in certain future circumstances. The Deed of Agreement should have the effect that should BVHS sell the property, Council will consent and otherwise enable the restriction on use of land to be lifted to allow an unencumbered transfer, provided that BVHS pay Council the unimproved land value of the property at the time of any sale.

Options

The options available to Council are:

1. Maintain the status quo and retain ownership, noting Lot 1 DP 787591 is held in Trust by Council on BVHS’s behalf only and there is no valid tenure arrangement in place.

2. Proceed with the resolution from 25 November 2020 to enter into a formal tenure arrangement with BVHS for their occupation of the Bega Pioneers’ Museum for an annual rental fee in line with Council’s adopted minimum fee.

3. Proceed as recommended by Council officers and resolve to transfer BVHS the title for Lot 1 DP 787591 for the sum of $1.00 and register a restriction on use of land to ensure the proceeds of any future sale of the land by BVHS are reinvested for the benefit of the local community. This option provides that all fees associated with the transfer, including Councils legal fees be borne by BVHS.

4. Proceed as requested by BVHS and transfer the title for Lot 1 DP 787591 for the sum of $1.00 free of any restrictive covenants or conditions. All valuation costs and stamp duty itself are to be borne by the BVHS, with each party paying their own legal fees in relation to the transfer.

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

Community and Stakeholder Engagement

Engagement undertaken

Following the Resolution of Council on 25 November 2020, Council officers wrote to BVHS on 26 February 2021 outlining the Resolution of Council and providing them with a licence agreement for their review and execution. Upon receipt of the advice and licence agreement a representative from BVHS contacted Council for information on timeframes to sign the agreement and rating details for the property.

Council officers also wrote to BVHS on 4 March 2021 seeking comments on any capital work upgrade projects that BVHS identifies as top priorities. A meeting with all museum committees has also been arranged for 20 May 2021.

Upon receipt of the formal advice from legal representative engaged by BVHS Council officers advised a formal report would be presented to Council for consideration.

Engagement planned

Council officers will continue to consult with BVHS and legal representatives as required to action the Resolution of Council.

Financial and Resource Considerations

As Lot 1 DP 787591 is currently in Council’s ownership and managed by BVHS on behalf of the community, it is not currently rateable, aside from water usage and waste management charges. As outlined above as no formal tenure arrangement over the site has ever been in place, Council has not received any income from providing the service to date.

Legal /Policy

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 must be clearly articulated within the report submitted for consideration by the Council. On the basis that evidence available confirms the building was purchased on behalf of BVHS by way of a loan now repaid in full, it is considered the proposed transfer for a nominal sum only is appropriate in this instance.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

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

Environment and Climate Change

There is no environment and climate change matters associated with the proposed divestment of this asset.

Economic

The asset is ageing and nearing the end of its useful life. If Council retains ownership of the facility, it will be required to invest substantially in its renewal and current funding levels are insufficient to continue to provide existing services.

Risk

In accordance with Council’s Acquisition and Disposal of Land Procedure, disposal of land by Council requires a formal process that ensures probity, due diligence, analysis of risk and other key issues.

Social / Cultural

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

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

Attachments

1 ⇩. Council Report dated 15 March 2017 Bega Pioneers Museum

Council 12 May 2021

Item 11.10

11.10. Licence to Bermagui Big Game and Anglers Club

The Bermagui Big Game Anglers Club currently occupies a radio room located on Crown Reserve 83225 at Bermagui. Their occupation of the site has been authorised by way of a five-year licence agreement which is due to expire on 30 June 2021.

Director Assets and Operations

Officer’s Recommendation

1. That Council, as Crown Land Manager of the Zane Grey and Dickenson Park Reserve (R83225), approve a further five-year licence with an option for a further five-years to Bermagui Big Game Anglers Club for their continued occupation of the radio room located on Crown Reserve 83225 at Bermagui for an annual rental fee of $1,623.59 plus CPI and increased annually by CPI.

2. That authority be given for the General Manager and Mayor to execute the licence agreement.

Executive Summary

Council is Crown Land Manager of the Zane Grey and Dickenson Park Reserve (R83225) for public recreational purposes. In order to maintain transparency and avoid any suggestion of impropriety, Council’s decision to enter into direct negotiations with Bermagui Big Game Anglers Club (BBGAC) has been addressed and Council approval is sought to enter into a new licence agreement with the BBGAC.

Background

Council resolved at its Ordinary Meeting of 8 June 2016, when considering the proposed renewal of a licence agreement to BBGAC to occupy a small section (Figure 1) of Council Managed Crown Reserve 83225 as follows:

1. That Council, as Reserve Trust Manager of The Zane Grey and Dickenson Park (R83225) Reserve, resolve to enter into a further 5 year licence agreement with the Bermagui Big Game Anglers Club for the occupation of the radio room located on Crown Reserve 83225 at Bermagui at the annual rental fee of $1,500 per annum.

2. That authority be given to the Mayor and General Manager to execute the licence agreement.

3. That in accordance with the requirements of the Crown Lands Act, Council obtains the Minister’s formal Consent to enter into the licence agreement.

Following the resolution of Council, officers progressed a five-year licence agreement with BBGAC which is due to expire on 30 June 2021.

The purpose of the radio room which is owned by BBGAC is to assist with safety at sea, as well as a fish weighing station and equipment storage facility.

The BBGAC also have a separate Permissive Occupancy agreement directly with Crown Lands for their occupation of the reserve below mean high water mark for a pontoon and walkway.

Figure 1 – BBGAC radio room and fish weigh station located within Reserve 83225.

In accordance with clause 70 of the Crown Land Management Regulations 2018 (NSW) renewal of existing licences over pre-Plan of Management Crown Land, for a term not exceeding 21 years, is permissible when there was a pre-existing licence in force immediately before the repeal of the Crown Lands Act 1989 (NSW) providing that the new licence does not authorise any uses for the land that are additional to uses that were permitted under the previous licence.

Options

The options available to Council are:

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

2. Council officers could carry out a public EOI process for the use of the reserve; however in light of the limitations of the Crown Reservation as well as the recent Aboriginal Land Claim lodged by the NSW Aboriginal Land Council and Native Title Claim in the Federal Court over all South Coast Crown Reserves, continuing with the current occupancy arrangements is the preferred option especially given BBGAC own the asset and it is a land only licence agreement.

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

Community and Stakeholder Engagement

Engagement undertaken

The BBGAC has indicated they are very happy with the current arrangement and wish to continue with their occupation of the site for a further term.

Engagement planned

Council officers will continue to liaise with BBGAC to action any Resolution of Council. Council officers intend to issue a five-year licence agreement with an option for a further five years, therefore in accordance with the provisions of section 47 of the Local Government Act 1993 (NSW) (LG Act) if Council proposes to grant a licence, in respect of community land for a period exceeding five years, it must:

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

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

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

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

Financial and Resource Considerations

The last market rental valuation commissioned by Council was in 2016 which indicated a rental figure in the order of $3,000 per annum. As Category 2 (single interest sporting group) the BBGAC has been entitled to a 50% rebate off market rent under the Crown land financial concessions policy. The annual licence fee payable by BBGAC over the past three years has increased each year by CPI, with an annual licence fee of $1,623.59 now payable.

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

Council officer time will be required to renew the existing licence agreement as well as ongoing management of a licence agreement during its term.

Legal /Policy

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

· Compliance with the legislation, related policies and guidelines;

· Compatibility with the reserve purpose of Public Recreation;

· Native Title rights; and

· Aboriginal land claims.

In addition, Council needs to ensure that entering into direct negotiations with the current operator is appropriate in this instance. For the following reasons, Council considers direct negotiation the appropriate course of action:

· To comply with the reserve purpose any occupation needs to be for public recreational purposes only. As a community sporting group, the BBGAC comply with the reserve purpose;

· BBGAC is locally based, stand alone and not-for-profit, it has a voluntary management committee comprising of local representatives and the term of the proposed licence agreement does not exceed 5 years in duration;

· BBGAC provides an important service for the local community;

· The radio room was built from money raised by the BBGAC;

· A rental assessment was commissioned by Council in May 2016 and provides a current market rental of $3,000 per annum. The cost involved in carrying out a market testing/public competition process is greater than the rental achievable once the rebate is applied;

· Staff are required to complete Pecuniary Interest returns annually and no conflict of interest has been disclosed

· The reserve is now under an Aboriginal Land Claim and only existing, low impact uses will receive authorisation until that claim has been assessed.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

BBGAC have occupied the space within Reserve 83225 for many years. BBGAC are responsible for the on-going maintenance to the radio room and contribute to the upkeep of the reserve.

Environment and Climate Change

There is no environment and climate change matters associated with the proposed occupation of space within Reserve 83225.

Economic

The licence agreement to BBGAC provide an economic benefit to Council and the community as the annual licence fee goes towards maintenance and upkeep of the Zane Grey and Dickenson Park Reserve (R83225).

Risk

The proposed issue of a licence agreement to BBGAC will affect native title, however, the act impacting Reserve 83225 will comply with the applicable provisions of the Native Title Act 1993 (Cth) being valid future acts under section 24JA.

The issue of a licence is not a public work and thus there is no requirement to notify. Should native title not prove to be extinguished by a prior act, any native title holders may be entitled to compensation for the act, in the event of a determination that native title exists in the land, and Council may be liable to indemnify the State in the payment of any compensation.

Social / Cultural

The voluntary efforts of the BBGAC are certainly acknowledged and appreciated not only by Council, but the many locals and tourists who have benefited from the safety at sea service they provide.

Attachments

Nil

Council 12 May 2021

Item 13.1

13.1. Exhibition of 2021-2022 Budget and Integrated Planning and Reporting documents

This report recommends review and adoption of the Long Term Financial Plan 2022-2031 and Cemetery Strategy 2020-2030, and that the Draft Revised Delivery Program 2017-2022 and Operational Plan 2021-2022 along with the Fees and Charges 2021-2022 are considered by Council and placed on public exhibition.

Director Business & Governance

Officer’s Recommendation

1. That the draft revised Delivery Program 2017-2022, the draft Operational Plan 2021-2022, including Council’s Budget and Revenue Policy, and the draft Fees and Charges 2021-2022 be placed on public exhibition for 28 days.

2. Following public exhibition, a further report be provided to Council for consideration of submissions and adoption of the Delivery Program-2017-2022 and Operational Plan 2021-2022 at the Council meeting on 16 June 2021.

3. That Council note Procedure 6.06.6 Statement of Pricing has been revoked and provisions will be reviewed annually within the Revenue Policy.

4. That Council adopt Scenario 2 – Improvement Model contained in the Long Term Financial Plan (LTFP) 2022-2031.

5. That Council adopt the Cemetery Plan 2020 - 2030.

6. That Council endorse option four (4) of the financial modelling options provided within the Cemetery Plan 2020 – 2030 to ensure the long-term sustainability of the Shire’s cemeteries and update the relevant cemetery maintenance fee in the draft Fees and Charges 2021-2022 prior to placing on public exhibition.

7. That Council officers advise those that made submissions during public exhibition of the Cemetery Plan 2020-2030 of Council’s decision.

Executive Summary

Under the NSW Integrated Planning and Reporting (IPR) framework councils are required to prepare a Community Strategic Plan, Resourcing Strategy, Delivery Program and Operational Plan. Council’s Community Strategic Plan – Working towards our Future – was adopted in 2017, along with the 4-year Delivery Program and Resourcing Strategy.

A key element of the Resourcing Strategy is the Long Term Financial Plan (LTFP) which has been reviewed as part of the preparation of the 2021-2022 IPR documents and is recommended for adoption. A comprehensive review of the LTFP model, key data inputs and assumptions have been undertaken since July last year.

It is proposed to place Council’s revised combined draft Delivery Program 2017-22 and Operational Plan 2021-22 on public exhibition for 28 days. The combined document includes financial information that supports the revised draft Delivery Program 2017-22 and Operational Plan 2021-22, including budgets, capital program and revenue policy. The draft 2021-22 Fees and Charges will also be placed on public exhibition.

Following the Council meeting the documents will be made publicly available for a 28-day exhibition period from 12 May 2021 until close of business on Tuesday 8June 2021 for comment and submissions.

This report also seeks adoption of the Cemetery Plan 2020-2030 after public exhibition earlier in 2021. Presenting the Cemetery Plan with the FY2022 budget and LTFP actions the resolution of Council at the meeting held on 21 April 2021.

Background

The Local Government Act 1993 requires all NSW councils to review and adopt key integrated plans within 12 months following local government elections. Under NSW Integrated Planning and Reporting, councils are required to prepare a Community Strategic Plan, Resourcing Strategy, Delivery Program and Operational Plan.

The Community Strategic Plan is the highest-level plan that Council prepares and is a whole of community plan, reviewed and developed in partnership with the community. It identifies and articulates the community’s long-term aspirations, priorities and vision.

The Delivery Program details the activities that the Council will deliver over its four-year term and the strategies it will implement in consultation with the community and contained in the Community Strategic Plan. The Resourcing Strategy details Council’s approach to long term financial planning, workforce planning and asset management. It provides a vital link between the Community Strategic Plan and Delivery Program.

Due to the COVID-19 pandemic, the Local Government elections were postponed for 12 months. In accordance with the Office of Local Government circular 20-15 (1 May 2020) Council’s existing Delivery Plan 2017-21 is to be extended for a further 12 months and include the Operational Plan 2021-22. Each year Council undertakes a forward planning and budgeting process which is compiled into the annual Operational Plan. It details the actions to be undertaken during the next financial year and includes the annual budget and revenue policy.

Resourcing Strategy – Long Term Financial Plan

Council adopted the Resourcing Strategy, which included its LTFP in 2017. At that time Council considered a range of options and resolved its position, for the adopted plans, with the major focus on asset management and outlining a range of projects and actions to progress over the period 2017 to 2021.

Since adoption of the Resourcing Strategy in 2017, Council has reviewed and adopted multiple versions of the LTFP. The most recent version of the LTFP was noted at the 26 August 2020 Council meeting and included the staged introduction of a Special Rate Variation (SRV) from the 2023 financial year. As we continue to review our financial sustainability, Council officers make recommendations to Council to amend the LTFP so that it reflects our strategic decisions. The LTFP is a forecasting tool that includes a number of estimates and assumptions and regular review of the LTFP is a matter of process and part of the normal IPR cycle where all long-term resourcing documents are revisited and updated as needed.

In 2019, Council committed to a Financial Improvement Plan. A key deliverable was the review of the existing LTFP model. External consultants, Morrison Low worked with Council to develop a revised LTFP model that:

· has improved integration between asset and financial forecasts

· helps us to better understand our current financial sustainability, considering and determining options for funding of Council operations and capital works including reserves and grants

· recommends depreciation and attribution methodologies

Morrison Low has also worked with Council and the Audit Risk and Improvement Committee to undertake a baseline review. This analysis helped to establish a revised starting point for the LTFP 2022-2031. The starting point is Scenario 1 - Base Case which was presented to Councillors in February 2021. After a thorough review of our current financial position a further three scenarios were developed. This report recommends Council adopt Scenario 2, the Improvement model. This includes a proposal to plan for an SRV of 5% per year for 5 years commencing in the 2023 financial year.

Scenario	Detail
Scenario 1 - Base Case	The Base Case model was informed by revised asset management and maintaining financial assumptions in our current forecasting methodology. This is the scenario and data that Council will use to measure future decisions and impacts on our financial sustainability.
Scenario 2 - Improvement Model [RECOMMENDED]	The Improvement Model proposes an SRV of 5% per year for 5 years from 2023. This is the recommended model and will support Council to return to a more balanced unrestricted cash position and remain financially sustainable.
Scenario 3 - Sustainability Model	The Sustainability Model proposes an SRV of 10% per year for 5 years from 2023, returning to a more balanced unrestricted cash position within a shorter time period.
Scenario 4 - Pools SVR Model	The Pools SRV Model proposes an SRV RV of 2.9% in Year1, 2.76% in Year 2 and 2.63% in Year 3 from 2023

The LTFP provides the blueprint for the future delivery of works and services with a background of affordability and long-term financial sustainability. Without an SRV, Council is not able to remain financially sustainable. Rising costs exceed our capacity to generate income and meet the needs of our community with service provision and asset maintenance. Increasing our revenue source is required.

In order for Council to achieve the draft 2021-2022 budget and meet our IPR requirements, Council must have an adopted LTFP.

Revised Delivery Program 2017-2022

As a result of the impacts of COVID-19 the Local Government elections planned for 2020 were delayed and are scheduled to be held in September 2021. The Office of Local Government advised that Councils were to extend their existing Delivery Programs for a fifth year to cover the extended terms of their elected Council. Councillors and staff have continued to review the Delivery Program and make necessary adjustments to ensure we deliver our core business and respond as needed to support the recovery and rebuilding from the Black Summer Bushfires and multiple floods along with the COVID-19 pandemic. The Delivery Program 2017-2022 and Operational Plan 2021-2022 are presented as a combined document.

Operational Plan 2021-2022

The Operational Plan 2021-2022 outlines what Council will do next financial year to meet the needs of the community, within the available funding sources. The Operational Plan is divided into the service areas of Council. Each service area has identified the core business and key projects they will deliver, with the budget and staffing levels they have. The Delivery Program 2017-2022 actions are listed in each service area and are connected to the key Operational Plan projects for 2021-2022.

A feature of this year’s Operational Plan is the inclusion of Council’s financial information for 2021-2022 including budget, capital program and revenue policy provided within service summary statements.

Budget summary

Council commenced preparation of the 2021-2022 budget in November 2020. Council officers started with a zero-based budget approach with significant work undertaken across Council in thoroughly reviewing all cost centres income and expenditure. Numerous Councillor workshops have been held from January to April 2021 to prepare the IPR documents for consultation during public exhibition, including the budget.

The goal for the 2021-2022 budget is to present a balanced consolidated position and this has been achieved. This has been incredibly challenging given our limited capacity to increase income and the numerous external cost increases we must absorb. One example of this in the next financial year is that our insurances alone have increased by around $600,000 and our 2% rate peg increase only generates an additional $504,000 of income. With just one item we are already having to look at reducing expenditure in service areas.

The costs for maintaining our growing asset base and meeting community expectations continues to increase as well as construction cost increases outstripping the rate peg.

This has resulted in staff recommending significant reductions across operational expenses in the General Fund services (~$4m), as well as some capital projects (~$9m) in the draft 2021-2022 budget.

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

· prioritising projects that have executed grant funding to reduce pressure on operational cash

· drawing down reserves to fund projects that meet the purposes for which the funds were reserved

· undertaking limited strategic loans for discrete long-lived asset renewal projects

· evaluation of existing projects and those that we will not be able to complete within the current financial year

· factoring in the impact of external market forces resulting in cost escalations since projects were originally scoped and priced

· factoring in increased costs for the Local Government Election beyond the current reserve funds, expected increases in the superannuation guarantee and increases in insurance costs across Council’s portfolio of up to 15%

· factoring in the emergency service levy.

Many of the decisions made by staff in presenting this balanced consolidated budget have been difficult. Staff acknowledge that we cannot continue on the same spending trajectory if we are to remain financially sustainable into the future, whilst maintaining adequate levels of service for the community. There are a range of impacts across Council that this budget will present.

· Our employee costs are our second largest expense and we have reviewed and reduced a range of employee expenses whilst maintaining the current number of positions.

· There will be adjustments in service levels across the business to save on operating costs including a reduction in maintenance and some facility opening hours.

· We have removed or reduced projects/programs from the budget that were identified as ‘budget bids’ which were either new non-mandatory work or considered more discretionary legacy work. Some of these include:

o deferral of a range of ‘non-critical’ asset renewals across roads, pathways, drainage, streetscapes and asset condition assessments

o deferral of planned upgrades to the Civic Centre and Bega Valley Regional Learning Centre

o removal of some scholarships and community grants

o reduction in funding for community events

o deferral of strategic planning work for Bermagui and Merimbula

o reduction in investment and renewal of technology.

Capital Program

The current budget includes a capital program with $85 million of expenditure, $45millon of this being funded by grants. The remainder is funded from loans, reserves (including a large amount for water and sewer works) or General Fund revenue.

Revenue Policy

The draft Operational Plan 2021-2022 includes Council’s Revenue Policy for 2021-2022 which includes:

· an overview of Council’s rating structure including the 2021-2022 rate peg amount of 2% determined by IPART

· details of the income from Council’s existing Special Rate Variations and Environmental Levy

· projected general rates income and stormwater levy income

· details of Council’s borrowings, pensioner rebates and debt recovery

· charges related to waste, water, sewer, liquid trade waste, high-consumption and on‑site sewer management

· Council’s charging philosophy.

Also included in this year’s Revenue Policy is an updated position regarding transfer of rates. Currently we levy all rates and charges on all rateable properties, as at 1 July each year. When the Revenue team receive a registration of a subdivision DP (Deposited Plan) or SP (Strata Plan), staff remove the service levies/charges from the parent property and transfer these levies/charges to each child lot as at the date of registration of the DP/SP. Rates however, remain on the parent property for the remainder of the financial year. Rates are raised on the child lots as at 1 July in the following financial year.

Commencing 1 July 2021, Council will undertake rating on a pro-rata basis when a registration of a subdivision DP (Deposited Plan) or SP (Strata Plan) is received. By raising pro-rata rates and charges, commencing from the next quarter (1 October, 1 January, 1 April or 1 July) after the DP/SP registration date, we are ensuring the appropriate rates and charges are applied to each property.

Fees and Charges

In accordance with Section 608 of the Local Government Act 1993 and other relevant legislation, Council is authorised to charge and recover approved fees and charges for any service it provides. All Council’s fees and charges are reviewed on an annual basis prior to finalisation of Council’s budget and a number of the Council facility management committees have provided their input into draft fees for next financial year. Fees and charges in general (not including statutory fees or fees set by management committees) will be increased generally by Consumer Price Index (CPI). Any fees and charges relief previously provided in connection with COVID will be rescinded.

Council’s approach when determining the amount of fees to be charged for goods and services considers the following factors:

· The cost of providing the service

· The importance of the service to the community

· Prices fixed by the relevant industry body/ies

· Any factors specified in the Local Government regulations

· User pays principle with full or partial cost recovery

· Equity factors

· Financial, customer and resource use objectives

· Impact of taxation (for example, GST)

· Market pricing

· In cases where a fee and/or charge is determined by legislation or other regulatory bodies, Council’s policy is not to determine an amount inconsistent with any fee or charge so determined.

The Fees and Charges includes our Pricing Policy. By including this information in the Revenue Policy, Council has revoked the need for the Statement of Pricing Procedure. This will now be reviewed annually as part of the Revenue Policy development and annual evaluation of Fees and Charges.

Cemetery Strategy

At the 21 April 2021 Council meeting it was resolved:

1. That Council note the public exhibition period to comment on the Cemetery Plan 2020-2030 has now closed.

2.That Council defer the cemetery plan for consideration by Councillors in the 2021-2022 budget.

As part of the development of the 2021-2022 Operational Plan and budget it is proposed that the Cemetery Plan be adopted and that Council endorse Option 4 of the financial modelling options. Option 4 of the financial modelling provided within the Cemetery Plan 2020 – 2030 proposes a combination of general fund subsidy for the wages and a more modest overall increase in fees.

Option 4 spreads the cost of the cemetery operations across the Shire and is a user pays model. It seeks a 100% subsidy of wages of $88k per annum from the General Fund and proposes an increase of the cemetery maintenance fee from $420 to $550. This $130 is a proposed increase of the cost of burials of 4%. It does not include an overall fee increase on cemetery excavation fees. If Council adopts the Cemetery Plan 2020-2030 and endorses option (4 of the financial modelling options it is recommended that staff update the relevant cemetery maintenance fee in the draft Fees and Charges 2021-2022 (Pg21) to $550 (it was $420 in FY21) prior to placing the draft Fees and Charges on public exhibition.

As outlined on page 18 of the Cemetery Plan 2020 – 2030 the below extract from the IPART Interim report dated December 2019 shows Council’s cemetery maintenance fee is considerably lower than other cemeteries in NSW.

The costs of grave excavation and related services are outlined on pages 18 – 20 of the Cemetery Plan 2020 – 2030. As outlined it is difficult to compare excavation prices with nearby Council’s as cemetery fees and charges can be grouped together or described in different terms. As shown in the below extract from the IPART Interim report dated September 2020 currently, consumers have limited access to transparent and consistent information that allows them to scrutinise prices.

Below is an example of cemetery fee comparisons with Bega Valley Shire, Eurobodalla and Snowy Mountains Regional Councils. Cemetery service Council 2020/21 Fees Single depth interment – conventional (includes both excavation and council fees) Bega Valley Shire $2,700 Eurobodalla $2,255 Snowy Monaro $2,000 Perpetual Interment Right Fee (formerly known as Burial Licence) Bega Valley Shire (single/double) $480 Eurobodalla (single/double) $1,750 Snowy Monaro (single village/town) (double village/town) $1,055-$1,365 $1,265-$2,100

Cemetery service	Council	2020/21 Fees
Single depth interment – conventional (includes both excavation and council fees)	Bega Valley Shire	$2,700
	Eurobodalla	$2,255
	Snowy Monaro	$2,000
Perpetual Interment Right Fee (formerly known as Burial Licence)	Bega Valley Shire (single/double)	$480
	Eurobodalla (single/double)	$1,750
	Snowy Monaro (single village/town) (double village/town)	$1,055-$1,365 $1,265-$2,100

While Council’s interment fees are slightly higher compared to our neighbouring Councils, the Perpetual Interment Right (formerly known as Burial Licence or Right of Burial) fee is substantially lower and this is the only component of Council’s fees that are proposed for an increase of 4%. This strategy will support Council’s ability to deliver capital works such as road and drainage works and plan for future expansion and address capacity issues into the future.

Information of Council’s gravedigging and related maintenance services including fees was presented to Council’s Ordinary Meeting on 18 September 2019. For ease of clarification the table below shows the single and double depth grave excavation fees and single and double depth fully shored excavation fees from 2008/09 to 2017/18 which make up the majority of the grave excavation services undertaken in the Shire.

The fees in general increased year on year by CPI adjustment.

Item	2008-09	2009-10	2010-11	2011-12	2012-13	2013-14	2014-15	2015-16	2016-17	2017-18
Single Depth Grave	$798	$828	$993	$1,126	$1,200	$1,250	$1,345	$1,460	$1,530	$1,600
Double Depth Grave	$874	$906	$1,087	$1,233	$1,310	$1,360	$1,445	$1,560	$1,630	$1,700
Single Depth Shored	$1,395	$1,447	$1,736	$1,736	$2,095	$2,165	$965	$975	$1,020	$1,060
Double Depth Shored	$2,250	$2,333	$2,800	$2,800	$3,380	$3,495	$2,250	$2,270	$2,370	$2,400

The following fees and charges are based upon the current contract rates with a CPI increase (with some rounding) added onto the contract rates which are used to cover Council internal costs for the operation, maintenance and management of the cemeteries and assist in maintaining the current levels of cemetery reserves.

Item	2018-19	2019-20	2020-21	2021 – 22 (Proposed)
Single Depth Grave	$1,800	$1,955	$2,010	$2,060
Double Depth Grave	$1,930	$2,100	$2,155	$2,205
Single Depth Shored	$2,890	$2,990	$3,070	$3,140
Double Depth Shored	$4,200	$4,470	$4,585	$4,660

Acknowledgement of funding support from the Federal and State Governments

With respect to the Operational Plan 2021-2022 and budget, Council acknowledges the support of the Federal Government through the Federal Assistance Grant and other programs to support Council operations including the Building Better Regions Fund and bushfire recovery programs. Council also acknowledges State Government support through significant project and program funding relating to a variety of service delivery areas, infrastructure projects and other activities. This is of particular importance in the current bushfire, flood and pandemic recovery process.

Options

Council has a range of options when considering the recommendations included in this report. Delaying the adoption of the LTFP, Cemetery Strategy or exhibition of the IPR documents will have future impacts. Council is legislatively required to have its Operational Plan and budget adopted by 30 June each year.

Community and Stakeholder Engagement

Engagement undertaken

Extensive internal engagement has been undertaken in the development of these IPR documents. Councillors and our Audit Risk and Improvement Committee have also been engaged in the development of these documents from November 2020- April 2021.

The Cemetery Strategy has been through a public exhibition period held earlier in 2021.

Engagement planned

If the revised draft Delivery Program 2017-22 and Operational Plan 2021-22 are endorsed for a 28-day public exhibition period, Council will engage with the community from 12 May 2021 to close of business on Tuesday 8 June 2021 by:

· making the revised draft Delivery Program 2017-22 and Operational Plan 2021-22 available for the community to read on Council’s website. In previous years, we have had hard copies available through our libraries and customer service centres, however due to COVID-19 restrictions, this year we are strongly encouraging people to review the plan via our website. Any specific requests for hard copies can be made through Council’s customer service team

· informing the community about the public exhibition through the media, social media and Council’s newsletters; inviting the community to provide feedback through a Have Your Say page on Council’s website

· notifying and inviting community associations, groups and business chambers to have their say

· submissions will be considered by responsible Council officers and we will acknowledge all submissions received. Further, these will be provided to Council prior to any decisions being made about the Delivery Program 2017-22 and Operational Plan 2021-22.

The goals for engaging the community on the revised draft Delivery Program 2017-22 and Operational Plan 2021-22 are to:

· give the community the opportunity to read the plans and provide their feedback to Council through the 28 day public exhibition

· provide the community with information and opportunities to ask questions and provide feedback and suggestions about the revised draft Delivery Program 2017-22 and Operational Plan 2021-22.

Financial and Resource Considerations

The draft Operational Plan includes a 2021-2022 budget summary which provides an overview of the total estimated income and expenditure for each of Council’s General, Waste, Water, and Sewer Funds as well as a breakdown of expenditure by Council service areas.

The focus in developing the LTFP and annual budgets is to ensure long term financial sustainability while ensuring the continued delivery of a broad range of services and capital works informed by Council’s underlying strategies.

Key considerations for Water and Sewer operations are ensuring a stable pricing path for ratepayers and meeting NSW Office of Water Best Practice requirements. Council’s 30 year Integrated Water Cycle Management Strategy and Strategic Business Plan is currently under review to ensure the existing pricing path and service levels meet our community’s needs.

It is reiterated that the budget is a forecasting tool and what is presented is based on what is known. As changes are identified, approval to amend the adopted budget is sought from Council each quarter through the Quarterly Budget Review Statement reports.

The key projected financial results for each fund and the consolidated position is shown in the table below (table is subject to rounding):

KEY RESULTS FY2022 ($’000)	General Fund	Sewer Fund	Water Fund	Waste Fund	Consolidated Fund
Total Income	108,508	20,633	12,952	12,879	155,002
Total Operating Expenses	73,549	16,032	12,561	10,224	112,365
Net Operating Result (before capital grants and contributions)	(5,162)	3,771	(294)	2,655	969
Net Operating Result (after capital grants and contributions)	34,959	4,631	391	2,655	42,637
Total Capital Program	57,881	9,674	15,404	2,829	85,788

A key financial objective when preparing the budget for next financial year was to achieve a balanced net operating result for all of Council (Consolidated Fund). The General Fund and Water Fund forecast an operating deficit before capital grants and contributions. These are balanced by positive operating results before capital contributions in the Sewer and Waste Funds.

The use of cash and level of unrestricted cash reserves are closely managed to ensure Council remains in a strong position to meet its obligations when they fall due.

Legal /Policy

Section 404 of the Local Government Act 1993 requires Council to have a Delivery Program to implement the strategies established in its Community Strategic Plan, within the resources available as identified under the Resourcing Strategy. Section 405 of the Local Government Act 1993 requires Council to adopt an Operational Plan before the beginning of each financial year which details the activities to be engaged in by the Council during the year as part of the Delivery Program. The Operational Plan must include a statement of the Council’s revenue policy for the year covered by the Plan. The revenue policy must include the statements and particulars required by legislation.

The Office of Local Government’s Integrated Planning and Reporting Manual and Integrated Planning and Reporting Guidelines are comprehensive tools which have been used in the revision of the draft Delivery Program 2017-22 and Operational Plan 2021-22.

Under the Local Government Act 1993, Council is required to develop and publicly exhibit documents in the Integrated Planning and Reporting Framework for a period of 28 days and consider submissions made to the Delivery program and Operational Plan prior to adoption.

The Delivery Program and Operational Plan draws on and implements actions contained in adopted Council policy documents.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The documents once exhibited and adopted, will guide the Council’s operations under the Integrated Planning and Reporting Framework.

Environment and Climate Change

Several of the Operational Plan projects listed support the implementation of Council’s recently adopted Climate Resilience Strategy including upgrading of our street lighting network and installation of solar panels on Council’s facilities.

Economic

As one of the Bega Valley Shire’s largest employers and consumers of a range of services, Council has a significant role to play in the local economy. It is acknowledged that adjustments in Council’s annual operating budgets has flow on effects to the local economy and this is considered as part of the budget development process. The budget for next financial year continues to see investment in resources that support our local economy as an employer and service provider and as a procurer of local works and services.

Risk

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

Social / Cultural

Both the LTFP and the Operational Plan will have future social and cultural implications. The LTFP proposes an SRV to be in place from 2023 which will impact the community as we plan for rates to increase. Balancing affordability with the ongoing asset renewal and service provision that would be funded by this additional revenue requires extensive community engagement as a key part of the application process to IPART before any increase would be implemented.

The Operational Plan and budget for next financial year will impact staff and the community as we seek to move towards being financially sustainable in the long-term. Impacts of the proposed budget will be monitored throughout the year and any adjustments needed is done through the QBR process.

Attachments

1 ⇩. Procedure 6.06.6 statement of pricing

2 ⇩. Attachment - Final BVSC Cemetery Plan 2020 - 2030

3 ⇩. LTFP_2022-2031_FORADOPTION.pdf

Council 12 May 2021

Item 13.2

13.2. Quarterly Budget Review Statement (QBRS) March 2021 - Q3

Quarterly Budget Review Statements (QBRS) are prepared and presented to Council in accordance with Section 203 of the Local Government (General) Regulation 2005. Amendments to the FY2021 Operational Plan are also proposed for Council’s consideration.

Director Business & Governance

Officer’s Recommendation

1. That Council receive and note the March 2021 Quarterly Budget Review Statement.

2. That the budget recommendations detailed in the March 2021 quarterly budget review statement be adopted.

Executive Summary

Under the Integrated Planning and Reporting (IPR) Guidelines, a Quarterly Budget Review Statement (QBRS) must be presented to Council for each financial quarter. This report provides the March (Q3) Quarterly Budget Review Statement for FY2021.

Background

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

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

The FY2021 budget was developed in March 2020 when many external factors were unknown. We referred to some of these in the September QBRS report that was adopted by Council.

We continue to demonstrate improvement in our financial reporting and systems, focusing on reducing errors and improving real time information.

The March QBRS shows a commitment to further improvement towards cost containment and reallocation of resources to the finance function to deliver improved budgeting monitoring and review processes.

Options

A detailed review from Council officers has been undertaken in preparing the QBRS and it is recommended this is adopted to continue to support Council staff to deliver for the community. Alternatively, Council has the option to seek other budget adjustments.

Community and Stakeholder Engagement

Engagement undertaken

Internal engagement with staff has been undertaken to develop the recommendations for the budget.

Engagement planned

If the recommendation is adopted, the QBRS will be made available on Councils website on the budget page.

Financial and Resource Considerations

Operating ResultCouncil’s budgeted surplus has increased by $9.3 million from $29.6 million in the revised December budget to $38.9 million. The net operating result before capital items has improved by $5.4 million with the expected deficit result of $4.3 million.Within income streams there have been an increase in rates and charges of $118,341, an increase in fees and charges $423,922 and other revenue increased by $4,413,556 mostly due to sale of land income.

Due to changes in AASB 1058 and AASB 15, grant income is recognised when Council has met, or partly met, the funding obligation. Prior to the change in accounting standards Council recognised the grant upon receipt and then restricted the amount unspent into a restricted reserve.

Included in both the operational and capital grants detailed below are amounts that have previously been received and, in the completion of 2020 Financial Statements were recategorized as contract liabilities.

Operational Grants have increased by $12.36 million dollars. Included in the total are new grants, previously received grants and new grants transferred to contract liability. Major contributors are DRFA funding for restoration works of $8.3 Million and $3 million in NDIS.

Capital Grants increased by $3.89 million. Included in the total are new grants, previously received grants and new grants transferred to contract liability. Major increases are DRFA capital grants of $2 million, other Commonwealth funding of $1.1 million and Towamba Burragate Road $3.8 Million. Major reductions include planned works that are being rescheduled to FY22 are Airport projects of $4 Million.

Expenses increased by $11.8 million. Employee costs decreased by of $197,735 and reflects staff working on capital projects and vacancies. Materials and contracts increased by $12.2 million. This is due to the increase in NDIS funding and DRFA operational grants. A decrease of $201,361 in other expenses reflect the effort of staff to reduce costs.

The recommended changes have the following impact on the net operating result before grants and contributions provided for capital purposes by fund:

	Revised Budget	Requested Changes	Projected Year End Result
General Fund	19,981,987	9,000,338	28,982,325
Water Fund	2,915,614	383,758	3,299,372
Sewer Fund	4,660,803	(10,253)	4,650,280
Waste Fund	1,993,484	(30,300)	1,963,183

The recommended changes have the following impact on the net operating result after grants and contributions provided for capital purposes by fund:

	Revised Budget	Requested Changes	Projected Year End Result
General Fund	(14,128,339)	5,500,755	(8,627,584)
Water Fund	91,696	(2,436)	89,260
Sewer Fund	2,926,017	(10,253)	2,915,494
Waste Fund	1,986,535	(30,300)	1,956,234

Capital

Capital expenditure is estimated to decrease by $76,472 in the March QBRS to $80.6 million. A review of the capital program was conducted with several projects identified that would not be completed in the current year. These have been carried over with a plan for them to be completed in the 2022 Operational Plan. Additional projects are related to grant funding.

Cash and Investments

Council had cash and investments of $86.9 million at 31 March 2021. The revised projected cash figure at 30 June 2021 is expected to be $63 million. Our investment performance has been impacted by the economic downturn due to COVID-19 pandemic.

Included in the anticipated cash flow for the financial year is loan income of $2 million as per Council resolution 263/20. This loan is to for works previously completed on the airport terminal. This is a reduction of $2.4 Million as the Airport works have been moved to FY22 and the loan funds will be included in the FY22 Budget.

Other impacts include:

· Council has not yet drawn down the approved loan for the Merimbula Airport Terminal. A projection of the loan funds has been included in this QBRS. The funds raised will be assigned to reimburse the reserves against which the Terminal works have been applied.

· The internally restricted funds released at 30 June 2020 (based on the cash and cash equivalent balance) have been reinstated in 2021 from the payments to be received from State and Federal government debtors and loan funds. Council resolution 297/20 on 16 December 2020 resolved to consolidate the reserves as recommended by the independent consultancy. This decision of Council was reflected in the December QBRS report.

Council has previously indicated a policy position of holding $1.5 million in unrestricted funds. This should be re-established as part of Council’s review of the financial strategy when it is undertaken in the IPR process.Legal /Policy

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

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

Budget Review Statements and revision of estimates

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

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

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

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

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

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Council’s 2017–2021 Delivery Program and 2020-2021 Operational Plan provides the Financial Estimates 2017–2021 which includes the Budget for 2020-2021 (FY2021).

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

Other key projects and actions which have been progressing in the current year to improve Council’s operational deficit and cash positions are workshopped with Councillors before presenting our recommendations for resolution. These include:

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

· Council’s management of reserves

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

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

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

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

· Accelerating the land divestment strategy

· A continued review of Councils asset portfolio including the BVRLC

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

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

· An assessment of service levels in areas funded particularly by the General Fund and ensuring a draft position in accordance with our financial strategy that informs the draft FY2022 budget.

This work is the focus of the current year as well as dealing with monitoring the impacts of the COVID and Bushfire/Flood on a range of services and income. For the development of the 2022 budget the move to zero based budgeting provides a clear focus for service costs that result in an impact on service levels. It is clear that Council continues to be in a challenging position however it is critical that our focus for the future moves to continue improvements in the financial position.

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

A review of all current Special Rate Variations (SRV) is being undertaken to consider options for rationalising and streamlining these for the future. This needs to be carefully considered following the pools SRV which was not progressed for this year however the full costs of the six-pool strategy remains and has a negative financial impact on the FY2021 budget included in this report.

Environment and Climate Change

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

Economic

Council and its expenditure has a significant economic impact on the Bega Valley. The recommended adjustments to the adopted budget ensure as an organisation we can continue to deliver the services and projects committed to in the FY2021 Operational Plan.

Risk

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

Social / Cultural

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

Attachments

1 ⇩. March 2021 QBRS

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

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

Council	12 May 2021
*Item 8.1 - Attachment 1*	Proposed Submission - Explanation of Intended Effect: Building Business Back Better

Council	12 May 2021
*Item 11.1 - Attachment 1*	Community project proposal summary sheet Council report 12 May 2021

Council	12 May 2021
*Item 11.5 - Attachment 1*	Merimbula Airport Community Advisory Group - Terms of Reference

Council	12 May 2021
*Item 11.6 - Attachment 1*	Wintersun Festival Merimbula Application

Council	12 May 2021
*Item 11.8 - Attachment 1*	Council Report dated 15 March 2017 Bega Pioneers Museum

Council	12 May 2021
*Item 11.9 - Attachment 1*	Council Report dated 5 August 2020 - Road Closure Central Waste Facility

Council	12 May 2021
*Item 13.1 - Attachment 1*	Procedure 6.06.6 statement of pricing

Council	12 May 2021
*Item 13.1 - Attachment 2*	Attachment - Final BVSC Cemetery Plan 2020 - 2030

Council	12 May 2021
*Item 13.1 - Attachment 3*	LTFP_2022-2031_FORADOPTION.pdf

Council	12 May 2021
*Item 13.2 - Attachment 1*	March 2021 QBRS

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

12 May 2021

Staff Reports –Planning And Environment

12 May 2021

8.1. Submission on proposed policy reforms to Complying Development Codes in Industrial and Business Zones

Officer’s Recommendation

Attachments

Council

12 May 2021

Staff Reports – Infrastructure Waste And Water

12 May 2021

11.6. Bega Valley Local Traffic Committee

Officer’s Recommendation

The Wintersun Festival Merimbula – 12 June 2021

Recommendation

Attachments

Staff Reports – Finance

12 May 2021

16.1. Cr Liz Seckold - Development application fee waiver for Tathra bushfire-affected landowner

Notice of Motion

Background

Attachments

Confidential Business

Adjournment Into Closed Session

Recommendation