Ordinary

          Meeting Notice and Agenda

 

An Ordinary Meeting of the Bega Valley Shire Council will be held at Council Chambers, Biamanga Room, Bega Valley Commemorative Civic Centre, Bega on Wednesday, 19 April 2023 commencing at 2:00pm to consider and resolve on the matters set out in the attached Agenda.

 

 

 

To:

Cr Russell Fitzpatrick, Mayor

Cr Liz Seckold, Deputy Mayor

Cr Tony Allen

Cr Cathy Griff

Cr Mitchell Nadin

Cr Helen O’Neil

Cr David Porter

Cr Joy Robin

Cr Karen Wright

 

Copy:

Chief Executive Officer, Mr Anthony McMahon

Director, Assets and Operations, Mr Ian Macfarlane

Director,  Community, Environment and Planning, Mrs Emily Harrison

Director, Business and Governance, Mrs Iliada Bolton

Manager Communications and Events, Ms Kellie Dodge

Executive Officer (Minute Secretary), Mrs Jackie Grant

 

 

 

 


Live Streaming of Council Meetings

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

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

Publishing of Agendas And Minutes

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

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

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

2.     Background for reports is provided by staff to the Chief Executive Officer for  presentation to Council.

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

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

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

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

Phone (02 6499 2222) or email execassist@begavalley.nsw.gov.au.

 


Ethical Decision Making and Conflicts of Interest

A guiding checklist for Councillors, officers and community committees

Ethical decision making

·      Is the decision or conduct legal?

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

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

·      Does it raise a conflict of interest?

·      Do you stand to gain personally at public expense?

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

·      Would it withstand public scrutiny?

Conflict of interest

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

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

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

The test for conflict of interest

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

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

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

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

Identifying problems

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

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

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

Local Government Act 1993 and Model Code of Conduct

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

Agency advice     

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

Contact

Phone

Email

Website

Bega Valley Shire Council

(02) 6499 2222

council@begavalley.nsw.gov.au

www.begavalley.nsw.gov.au

ICAC

8281 5999

Toll Free 1800 463 909

icac@icac.nsw.gov.au

www.icac.nsw.gov.au

Office of Local Government

(02) 4428 4100

olg@olg.nsw.gov.au

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

NSW Ombudsman

(02) 8286 1000

Toll Free 1800 451 524

nswombo@ombo.nsw.gov.au

www.ombo.nsw.gov.au

 

Disclosure of pecuniary interests / non-pecuniary interests

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

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

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

Item no & subject

 

Pecuniary Interest

 

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

Significant Non-pecuniary conflict of interest

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

Non-pecuniary conflict of interest

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

Nature of interest

Be specific and include information such as :

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

·         The nature of your relationship with the person or organization

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

If Pecuniary

  Leave chamber

If Non-pecuniary  (tick one)

 Disclose & vote        Disclose & not vote          Leave chamber

Reason for action proposed

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

Print Name

 

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

Signed

 

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


Council

19 April 2023

 

Agenda

Statement of Commencement of Live Streaming

Acknowledgement of Traditional Owners of Bega Valley Shire

Statement of Ethical Obligations

1       Apologies and requests for leave of absence

 

2       Confirmation Of Minutes

Recommendation

That the Minutes of the Ordinary Meeting held on 22 March 2023 as circulated, be taken as read and confirmed.

3       Declarations

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

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

 

5       Petitions

 

6       Mayoral Minutes

  

7       Urgent Business

 

8       Staff Reports – Community, Environment and Planning

8.1                Alcohol Free Zones and Alcohol Prohibited Areas..................................................................... 9

 

9       Staff Reports – Assets and Operations

9.1                Exhibition of Draft Merimbula Transport Study....................................................................... 14

9.2                Options for Waste Roadside Collection Expansion Project and Cobargo Transfer Station 198

9.3                Request for Tender (RFT) Merimbula Sewage Treatment Plant (STP) Aeration Tank Upgrade      236

9.4                Bega Valley Local Traffic Committee........................................................................................ 240

 

10     Staff Reports – Business and Governance

10.1              Brogo to Bermagui water trunk main easement................................................................... 250

10.2              Civica Software Licence and Services Agreement Execution............................................... 254

10.3              Enterprise Resource Platform (ERP) Future............................................................................ 259

10.4              Extension of tenure - Discovery Holiday Parks Pambula Beach.......................................... 269

10.5              Road Closure - Section of unconstructed road off Oliver Street, Bemboka...................... 273

10.6              Road transfer Voluntary Planning Agreements...................................................................... 289

10.7              Robyn's Nest Deed of Management and Licence.................................................................. 298

10.8              Audit, Risk and Improvement Committee Quarterly Report March 2023........................ 307

10.9              Tathra Beach Kiosk...................................................................................................................... 312

10.10           Social procurement initiatives................................................................................................... 318

10.11           Exhibition of the Integrated Planning and Reporting documents...................................... 323

10.12           Certificate of Investment March 2023..................................................................................... 559

10.13           Australian Local Government Association (ALGA) 2023 National General Assembly..... 565

 

11     Councillor Reports

 

12     Rescission/Alteration Motions

 

13     Notices of Motion

13.1              Review of parking enforcement................................................................................................ 587

 

14     Questions with Notice

 

15     Questions without Notice

15.1              Cr Porter – Could staff please report what actions have been taken to comply with the relevant recommendations for local government in response to Tathra - Reedy Swamp bushfires?       589

 

16     Confidential Business 

 

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

Adjournment Into Closed Session, exclusion of the media and public........................... 591

              

Statement of Cessation of Live Streaming for the period of the

Closed Session.

Statement of Re-Commencement of Live Streaming

17     Noting of Resolutions from Closed Session

18     Declassification of reports considered previously in Closed Session 


Council

19 April 2023

 

 

Staff Reports – Community, Environment and Planning

 

19 April 2023

 

8.1              Alcohol Free Zones and Alcohol Prohibited Areas................................................ 9


Council 19 April 2023

Item 8.1

 

8.1Alcohol Free Zones and Alcohol Prohibited Areas
     

This report informs Council of the outcome of consultation with the community and stakeholders regarding the intention to streamline all alcohol free zones in the shire by simultaneously cancelling and re-establishing all existing alcohol free zones and re-establishing three expired alcohol free zones.

Director Community Environment and Planning  

Officer’s Recommendation

 That Council:

1.    Resolves to cancel all current alcohol free zones (AFZs), with the exception of the newly established AFZ on the corner of Gipps and Bega streets in Bega, and establish new alcohol free zones in the same locations for a period of 4 years.

2.    Resolves to re-establish expired alcohol free zones on the same schedule as current/new alcohol free zones.

3.    Notes that consultation with the local police, the community and other stakeholders was undertaken as required under the Ministerial Guidelines and Local Government Act.

 

Executive Summary

At the 17 August 2022 Council meeting, Council resolved to support, in principle and subject to community feedback, the cancellation and re-establishment of current and expired alcohol free zones (AFZs) in the shire.No feedback was received during the community consultation process.

Council officers have engaged with local area command who support cancellation (where applicable) and establishment of the following AFZs:

Current:

·    Eden Central Business District

·    Biamanga Aboriginal Cultural Area

Expired:

·    Bega Commercial Centre

·    Lamont St Bermagui 

·    Merimbula Central Business District

This report seeks approval to re-establish these AFZs.

Background

At the 14 December 2022 Council meeting, Council endorsed the establishment an AFZ and Alcohol Prohibited Area (APA) on the corner of Gipps and Bega streets in Bega. This AFZ and APA have now been established and signage was erected in January 2023. Pending Council endorsement of this report, the new AFZs will be established to align with this timing – that is, all AFZs will expire in January 2027. 

The Ministerial Guidelines on Alcohol Free Zones (AFZs) have been prepared under section 646 of the Local Government Act 1993.

AFZs are an early intervention measure to prevent the escalation of irresponsible street drinking to incidents involving serious crime.

The irresponsible consumption of alcohol on roads, footpaths and in public carparks can compromise their safe use by members of the public without interference. Alcohol-free zones promote the use of these roads, footpaths and carparks in safety and without interference from irresponsible street drinkers.

Each individual zoning is to be considered according to its particular circumstances. Reasons for supporting alcohol-free zones must be included and must reflect the fact that irresponsible behaviour arising from the consumption of alcohol is occurring on those roads and footpaths and in those public carparks included in the proposal. This could involve instances of obstruction, littering, the actual commission of, or police intervention to avoid the commission of, more serious offences under the Law Enforcement (Powers and Responsibilities) Act 2002, Summary Offences Act 1988 or the Crimes Act 1900, such as malicious damage.

It is not appropriate to consider an alcohol-free zone for reasons that are unrelated to the irresponsible behaviour of drinkers, for example, the congregation of drinkers where irresponsible behaviour does not occur, general conduciveness to business or tourist activities, or the personal beliefs of particular citizens.

Alcohol free zones can be established for a maximum of 4 years. 

Cancellation and re-establishment of existing and expired AFZs will enable a more efficient review process and ensure signage can be updated or replaced simultaneously. Any requests for new AFZs will be brought into line with the regular review process where possible.

Options

1.    Council can resolve to support the recommendations in this report.

2.    Council could resolve not re-establish AFZs. This will result in the three current AFZs lapsing by the end of 2023 and reduce police powers to appropriately deal with irresponsible behaviour caused by street drinking. This would also mean the only current AFZ in the shire is the Gipps and Bega streets AFZ which will expire in January 2027.

Community and Stakeholder Engagement

Engagement undertaken This item was tabled at the Police Liaison Committee meeting on 7 July 2022. The committee supported the cancellation (where applicable) and establishment of the AFZs listed in this report. The committee supported AFZs as an appropriate mechanism to address irresponsible behaviour caused by street drinking and enable police to appropriately deal with this behaviour and its impacts.

Community engagement was undertaken on the proposal to streamline the shire’s AFZs from 28 September to 28 October 2022. A public notice was published in the three local newspapers in the shire inviting representations or objections within 30 days from the date of publication on 28 September.

The community was invited to provide feedback on the proposal on Council’s Have Your Say webpage or in writing or via email.

There were no submissions received on the proposal.

Engagement planned

Further engagement will be undertaken in 2026 in the lead up to the AFZs expiring in early 2027. This will include consultation with the Police Liaison Committee and the broader community, to consider whether there is a need to re-establish the AFZs at that time. 

Financial and Resource Considerations

The re-establishment of an AFZ would require the replacement of expired signage with new signage at the area, or for stickers to be added on existing signs with the new expiry date. Stickers would cost approximately $50 per sticker. Where required, new signs could be affixed to the existing galvanised poles at a cost of approximately $100 per installation. If a new AFZ was established, signage with a new pole would cost approximately $200 per sign.

Item

$ Excl GST

Expenditure Detail

 

New sign with post

$200

Replacement sign – existing post

$100

Update date stickers on existing signage

$50

Total Expenditure

 

 Variable depending on number

Source of Funds

 

Certification and Compliance

Legal /Policy

The Ministerial Guidelines on Alcohol Free Zones (AFZs) have been prepared under section 646 of the Local Government Act 1993.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

This approach aligns with the Bega Valley Community Strategic Plan 2042:

·    Theme A: Our community – We are a vibrant, respectful, inclusive and connected community that enjoys a culturally rich community life.

·    Strategic Objective: Our shire continues to be a safe and affordable place to live.

·    Strategy A.8: Ensure community safety is planned for and partner with other agencies to address issues related to community safety

Environment and Climate Change

There are no environmental and climate change impacts based on the recommendation of this report.

Economic

There are no significant economic impacts based on the recommendation of this report. However, providing safe and useable public spaces encourages residents and visitors to use our public spaces and business districts, and adds to the overall character and appeal of our shire. 

Risk

AFZs empower the Police to take action if alcohol consumption within the designated areas is leading to antisocial behaviour. It mitigates risk of antisocial behaviour as well reducing the risk of debris, including broken glass, in public places.

Social / Cultural

Community safety and the perception of safety are important factors in activating public places. Re-establishment or establishment of AFZs has the potential to improve public safety and reduce the risk of irresponsible or dangerous behaviour in these areas.

Attachments

Nil

  


Council

19 April 2023

 

 

Staff Reports – Assets and Operations

 

19 April 2023

 

9.1              Exhibition of Draft Merimbula Transport Study.................................................. 14

9.2              Options for Waste Roadside Collection Expansion Project and Cobargo Transfer Station........................................................................................................................... 198

9.3              Request for Tender (RFT) Merimbula Sewage Treatment Plant (STP) Aeration Tank Upgrade........................................................................................................................... 236

9.4              Bega Valley Local Traffic Committee................................................................. 240


Council 19 April 2023

Item 9.1

 

9.1.  Exhibition of Draft Merimbula Transport Study     

This report seeks a resolution of Council to publicly exhibit the draft Merimbula Transport Study.

Director Assets and Operations  

Officer’s Recommendation

1.    That Council resolve to publicly exhibit the draft Merimbula Transport Study (attachments 1 and 2) for not less than 42 days.

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

 

Executive Summary

The draft Merimbula Transport Study has been prepared by Cardno (now Stantec), on behalf of Council, in collaboration with business and community stakeholders and Council staff. The draft study seeks to recognise all modes of transport, including vehicles, pedestrians, and cyclists, their interdependencies and the needs of users now and in the future.

This report recommends the draft study be publicly exhibited to seek additional community feedback and a further report be submitted to Council following exhibition summarising feedback and any recommended changes to the draft study. Once adopted, the study will be used to guide planning and investment in an integrated transport network that supports the vision for Merimbula.

Background

The draft study has been developed as a key planning document for transport infrastructure prioritisation and implementation to assist delivery of a vision for Merimbula. The draft study delivers and is a direct outcome of Action 8.1 of the Bega Valley Shire Local Strategic Planning Statement (LSPS), which identifies the need to develop a study that will inform a place-based plan for the Merimbula area that considers all modes of transport. It is intended to form part of the shire-wide future transport strategy and be key input to a shire-wide Active Transport Strategy and a Place Based Area Plan for Merimbula.

The draft study is focused on the Merimbula Central Business District (CBD) and Fishpen precinct and considers all transport needs of the community and visitors, including vehicles, pedestrians, and cyclists, now and into the future. The transport assessment considers this area in the context of its surroundings, including connections to neighbouring towns and regional hubs.

The draft study seeks to assist in achieving the 2040 vision for Merimbula contained in the LSPS: The coastal atmosphere of Merimbula as a vibrant seaside destination has been enhanced by orienting commercial development towards the lake, prioritising pedestrians and improving public open space.

The draft study was based on the methodology and principles of the Transport for NSW (TfNSW) Movement and Place Framework. The framework recognises that it is important to understand place as well as movement before considering changes to either, because they are intrinsically linked. Balancing movement and place recognises that trade-offs may be required to achieve a best fit for the objectives.

The objective of the Movement and Place Framework is to achieve roads and streets that:

·    contribute to the network of public space within a location, where people can live healthy, productive lives, meet each other, interact and go about their daily activities

·    are enhanced by transport and have the appropriate space allocation to move people and goods safely and efficiently and connect places together.

The draft study is presented in two parts. The Context Report (Attachment 1) outlines the project methodology including the classification of streets, and details the strategic context, relevant elements of place and movement, intersection performance, issues and opportunities as well as presenting the transport modelling and analysis results, and a consultation report.

The Recommendations Report (Attachment 2) clarifies the objectives of the draft study and outlines 55 recommendations relating to public transport, place, the road network, parking and active transport, as well as 5 transformative ideas to:

·    create a fully connected active transport route around Merimbula Lake

·    create a one-way traffic loop in the Merimbula CBD and slow speed environment

·    transform the Beach Street carpark into a place for people

·    extend the Fishpen Road one-way loop and low speed zone to Ocean Drive

·    prepare the infrastructure to develop Merimbula for accessible living and tourism.

Options

Options available to Council are to:

1.    Publicly exhibit the draft study provided in Attachments 1 (Context Report) and 2 (Recommendations Report). This is the recommended option.

2.    Amend the recommendations in the draft study before public exhibition. However, it is recommended that Council resolve to place the draft study (Attachments 1 and 2) on public exhibition. Council will then be able to consider the matters raised in submissions received during the exhibition period when the further report is presented to Council.

3.    Not exhibit the draft study. This is not recommended as Council has committed to develop a Transport Strategy for Merimbula.

Community and Stakeholder Engagement

Engagement undertaken

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

The draft study was informed by stakeholder engagement across a variety of platforms including a community consultation web portal, a Council web portal, and stakeholder and community workshops. Stakeholder groups involved included community members, local transport operators, TfNSW, the Merimbula Chamber of Commerce, Council staff and Councillors. Engagement opportunities were promoted through media releases, web content, social media and signage in Merimbula. A consultation Summary Report is contained in Appendix B to Attachment 1 of this report.

The draft study is built on visioning work carried out by Council in the development of the LSPS and involved collaboration with staff from across Council, including projects, assets and strategic planning.

Several individual elements which fed into the draft study have previously been developed, including the CBD Landscape Master Plan, Merimbula CBD Parking Report, Bega Valley Shire Disability Inclusion Action Plan, Climate Resilience Strategy, Commercial and Residential Land Strategies and Merimbula Lake and Back Lake Floodplain Risk Management Plan. Stakeholders that were involved in the development of these projects included land and business owners, representatives of community groups, interested community members and Councillors. 

Engagement planned

Formal public exhibition of the draft study is proposed for a period of six weeks. Notices will be placed in the Merimbula News Weekly, Council’s Bega Valley Together newsletter, Council’s website and on Council’s social media channels. A media release will also be issued.

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

In addition to the exhibition of the whole study, a short online survey will be hosted on Council’s website. The aim of this survey is to try to engage a wide range of the community, particularly the 18-35 year age group, in the project. The survey will enable Council to collect feedback about how people rank the draft recommendations as well as link people through to the whole document to encourage a further submission. The survey will be promoted through Council News and on Council’s social media channel.

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

Engagement planned

At this stage no further engagement is planned but this is dependent on the feedback from the public exhibition.

Financial and Resource Considerations

Resources to develop the draft study are included in Council’s adopted 2021-2022 and 2022-2023 budget and operational plans.

Expenditure Detail

 $ Excl GST

Development of study (General Fund)

$96,065.00

The draft study includes a range of recommendations that have future resource implications for Council, including direct investment to upgrade Merimbula’s transport assets, alter traffic arrangements, and improve tourism marketing and wayfinding. These activities will require future allocation of resources, which will be considered as part of Council’s annual budget processes. Legal /Policy

Legal and policy options to deliver improved transport outcomes in Merimbula and surrounds have been considered in the draft study. 

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The draft study aligns with the following goals of the Bega Valley Community Strategic Plan 2042:

•     We are a vibrant, respectful, inclusive and connected community that enjoys a culturally rich community life.

•     Our transport networks support our community to work, learn and socialise

•     Our community has access to good quality open space, recreation and sporting facilities that support health and wellbeing.

The draft study directly supports implementation of Council’s adopted Local Strategic Planning Statement in relation to the priorities and future directions for transport, town centres and open space, as well as addressing the desired future character statement for Merimbula.

Environment and Climate Change

There are no material environment and climate change impacts associated with the proposal to exhibit the draft study. 

Should the identified recommendations be implemented, it is anticipated that minor emission reductions would be achieved via redistribution of mode share away from private vehicle movements over time.

Economic

There are no material economic impacts associated with the proposal to exhibit the draft study. The cost of implementing the recommendations will be further explored when projects are scoped and will usually be preceded with a feasibility study. It is expected that the costs to Council would be offset by the economic benefit to the community of adopting the draft study recommendations.

Risk

Exhibiting strategies and studies is a core activity of Council and does not introduce any new risks. The recommendations proposed in the draft study, such as direct investment in development of Merimbula’s transport infrastructure and land use, are also core activities for Council. Measures to mitigate the risks around these proposed activities would be developed at the detailed planning stage for projects yet to be scoped.

Social / Cultural

Improvements identified in the draft study will benefit all transport users. The focus on active transport modes and social and cultural place making are central to the Movement and Place Framework and will be key inputs into the Active Transport Strategy under development.

Attachments

1.         Draft Merimbula Transport Study Context Report

2.         Draft Merimbula Transport Study Recommendations Report

 


Council

19 April 2023

Item 9.1 - Attachment 1

Draft Merimbula Transport Study Context Report

 

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Council

19 April 2023

Item 9.1 - Attachment 2

Draft Merimbula Transport Study Recommendations Report

 

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Council 19 April 2023

Item 9.2

 

9.2Options for Waste Roadside Collection Expansion Project and Cobargo Transfer Station     

This report provides a project update and options for the expansion of rural waste roadside collection services and the future of the Cobargo Waste Transfer Station site.

Director Assets and Operations  

Officer’s Recommendation

1.    Note the outcome of the community meeting undertaken 15 March 2023.

2.    Undertake a trial of a semi-automated waste deposit system for municipal household waste (including co-mingled recycling) at the Cobargo waste transfer station site for up to 2 years. (Option 3)

3.    Report back to Council at the conclusion of the trial to inform options for the consolidation of Council’s waste sites in accordance with the adopted Waste Strategy.

 

Executive Summary

Project staff are seeking Council’s resolution to undertake a trial of a semi-automated waste deposit system to provide a higher level of service to the community in the north of the Shire, while also reducing capital investment and operating costs in the long term.

A Council report on 15 February 2023 presented options for the Rural Roadside Expansion Project and the future of the Cobargo waste transfer station. It was resolved that staff would undertake a community meeting in Cobargo and report back to Council.

Council also resolved to cease the roll-out of rural bin banks as the total cost of constructing exceeds the project budget and does not represent a value for money outcome for the community. The prior report presented two other options to the Council, with those options presented again in this report.

The Options, Community and Stakeholder Engagement and Attachments sections of the report are updated, but otherwise the report is unchanged from 15 February 2023 in order to provide the full background, justification and impact of the project for the public record.

Background

In 2018 Council resolved to adopt the Waste Strategy. Part of this strategy included the closure of Cobargo waste transfer station upon certain conditions being met. This closure was inadvertently brought forward prior to these criteria being met due to the site being destroyed in the bushfires. There was an option to reinstate a landfill at the site to deal with the bushfire debris however this was opposed by the local community in the aftermath of the fires citing issues with contaminated materials and such like. 

The Waste team reported to Council on 26 August 2020 and again on 17 February 2021 with a holistic update of “Waste Facility Consolidation and Modernisation” against the adopted (2018) ten-year waste strategy and its waste diversion models. At these meetings it was presented that an expansion of up to 1100 new rural waste collection services could be rolled out beginning in 2021, and that the project would not have a significant financial impact to Council. The expansion of services had been a pre-condition to permanently closing the Cobargo waste transfer station with a transitional closure plan for Candelo waste transfer station to be developed. The Wallagoot waste transfer station is also scheduled to transition to closure but is not contingent on expansion of services.

Various issues have slowed progress; most notably project and managerial staff turnover in the Waste team and prioritising disaster recovery delivery by Council’s engineering and project management teams. Survey, design review and updated cost estimates were completed for the initial rollout of bin banks in September 2022 and engagement with the waste roadside collection contractor Cleanaway has been ongoing.

It became apparent that the capital investment required to expand the collection network to 1100 new customers across the shire would not deliver on the promise of an insignificant financial impact to Council. Updated estimates show that a standard multi residence bin bank would likely cost more than $7,000 per service (each household’s red and yellow bin), and that expanding the collection network further along many of Council’s unsealed rural roads could not be achieved due to prohibitive safety and construction cost issues. The addition of a FOGO green bin may also be mandated by 2030, increasing the cost per service further. Rural bin banks are also at a high risk of bushfire impact, with a third of the Council’s existing bin banks having been destroyed in the 2019-2020 Black Summer bushfire event and requiring replacement and/or remediation.

Given the risk profile and projected costs, it is estimated that up to $4.6m in upfront capital investment would be required to deliver on only some of the original project objectives. This would still result in a high-risk asset susceptible to destruction in a bushfire and would still leave large numbers of residents without a rural roadside collection service. 

The project team identified that proceeding without reporting back to Council was not in the community interest and began to identify alternative options for the delivery of waste services for rural residents. Historical costs of our transfer stations clearly identify that the majority cost of operation is in staff wages. Operating models that minimise staff attendance at the sites through the adoption of value for money technology options whilst charging fair fees for services are fundamental to the design options considered. These options, and any relevant background are provided below and in the supporting information attached.

Currently Cobargo waste transfer station is closed to the general public. Fire impacted residents with written permission from Council can drop off household general and co-mingled recycling free of charge during two four-hour (2 x 4 hr) windows per week. Cobargo is a legacy landfill site (contaminated land) that requires ongoing management regardless of operational activities conducted at the site. A soft rollout of new roadside collection services was delivered to Link Road, and parts of Wandella Road in November 2022 as no capital works were required to achieve this.

As a legacy landfill site, Cobargo waste transfer station will require ongoing management to monitor for and prevent adverse environmental issues. It is not known what impact the 2019-2020 Black Summer Bushfire had on the condition of the landfill. Some investigation and remediation will be necessary in consultation with the EPA NSW. This has been planned and budgeted separately to this project.

Options

Option 1 At the meeting of 15 February 2023, Council resolved against Option 1 by deciding to cease the rollout of rural bin banks.

Deliver against Council’s existing resolution of 17 February 2021 – “Expanding the rural roadside collection service to rural properties…. keeping Cobargo waste transfer station closed and not removing the temporary skip bins in place at Cobargo until the collection service to all rural properties has occurred.

This option is very high risk and very high cost, requiring significant additional project funding up to a total of $4.6 million and is unlikely to roll out services to all of the customers originally envisaged due to practical access constraints. Failing to reach all customers also undermines the ability to close transfer stations despite the significant increase in investment.

Option 2 – Formalise the current status quo, with no-charge domestic waste drop off at skip bins located at Cobargo waste transfer station, no construction of bin banks and very limited expansion of the roadside collection service.

This option is medium-high risk and low cost but does not deliver against Council’s waste diversion strategy and provides a low level of service to residents in bushfire impacted communities. Further, as the Cobargo and surrounding communities rebuild and recover, fees and charges would be applied inequitably across the shire.

The option would formalise:

·    Providing a rural roadside collection service to eligible residents on Yowrie Road, and potentially Dignams Creek Road pending the outcomes of community engagement (both sealed transitioning to unsealed roads).

·    Planning approvals for rebuild of operations for a condensed domestic waste only drop off service at the former Cobargo waste transfer station site.

·    Site operating hours of two four-hour (2 x 4 hr) windows per week.

·    Permanent access and security fencing replacing the current temporary fencing.

·    Minimal renewal of existing operational buildings including site office, storage, water tanks and other fire-fighting equipment.

·    Candelo waste transfer station would not transition to close.

This option is presented in lieu of rebuilding the site to its prior operating model, as the net operating cost of Cobargo waste transfer station in this option is lower than the operating costs of the site prior to the Black Summer Bushfires.

This is not the recommended option.

Option 3 – Undertake designs and cost estimates for the redevelopment of the Cobargo Waste Transfer Station as a semi-automated site for domestic waste, and the implementation of fees for use.

This option is medium-high risk and medium cost but delivers on Council’s waste diversion strategy. This site would be a pilot site for semi-automated waste drop off sites in rural locations providing a higher level of service to residents and contributing to Council’s diversion strategy targets. If successful it would serve as a model for the development of the Shire’s other high cost, low impact sites such as Candelo and others. There would be no construction of bin banks and very limited expansion of the rural roadside collection service.

Reducing the scope of waste operations at some or all our waste transfer stations in turn lowers capital and operational costs in the long term. This allows Council to deliver on the objectives of its’ strategy and invest in upgrading Bermagui and Eden Waste Transfer Stations agreed at previous Council meetings.

This option would include:

·    Providing a rural roadside collection service to eligible residents on Yowrie Road, and potentially Dignams Creek Road pending the outcomes of community engagement (both sealed transitioning to unsealed roads).

·    Planning approvals for redevelopment of operations at the former Cobargo Waste transfer station site.

·    Design and construct domestic general waste and co-mingled recycling drop off, adopting existing technology options for automated and semi-automated waste deposit systems. Examples are provided in the attachment.

·    Development of policies and procedures (including fees and charges) to incentivise responsible use of the site and waste diversion.

·    Pilot the site and measure benefits over 1-2 years to determine whether the model is successful and can be rolled out to other rural locations in the Shire, including but not limited to Candelo waste transfer station catchments.

This is the recommended option.

Community and Stakeholder Engagement

Engagement undertaken

Project staff and the CEO undertook a community meeting on 15 March 2023 at Cobargo Public School. Councillor Helen O’Neill was in attendance.  Prior to this a media release was published on 3 March 2023 notifying residents of the meeting. Flyers (attachment 1) were mailed to 225 residents that currently do not have a rural roadside waste collection service inviting them to the meeting and providing basic information on the proposal. These residents are those that currently access the temporary household waste drop-off that is located at the Cobargo waste transfer station. The same flyer was provided to residents that attended the Cobargo waste transfer station on 08, 11 and 15 March 2023.

54 residents attended the information session. The CEO and project staff provided further detail and an explanation of the proposed trial including a short slide presentation (attachment 2).  A lot of questions were asked revolving around the trial and technology specifics and the expected cost to residents of the service.  A summary of the key points discussed at the meeting are provided at attachment 3.

All attendees were given the opportunity to provide written feedback and 19 submissions were received (attachment 4). It should be noted that all respondents that provided written feedback were keen to take part in the trial of a semi-automated household waste collection service.

Overall, the information session was a positive event with a number of residents speaking with the presenters and thanking them for their time and the opportunity to discuss this household waste collection initiative.

A follow-up letter has been mailed to those 225 eligible residents with a note of sincere thanks for their time and contributions at the public information session. It included links and instructions on how to view existing reports on the project and how to make a deputation to the Council on this matter.

The project team continue to conduct industry engagement to understand the technology options available for automated waste deposit systems. This has been used to understand cost and feasibility of adoption, however no new information has come to light.

Engagement with collections contractors is ongoing. Contractors are not strictly contractually obliged to accommodate an unlimited expansion of services; however, to date they have indicated they can support the expansion of specific services proposed for Yowrie, Wandella and Dignams Creek.

Engagement planned

The project will require ongoing engagement with the community to manage expectations of service and any deviation from the original project deliverables. If Council resolve to re-scope the project (Option 2 or 3) an updated engagement management plan will be developed based on the resolution. This would include a “Have Your Say” including an update on progress to date, the reasons for the Council’s decision, and information on the new project scope.

Financial and Resource Considerations

Option 1

Item

$ Excl GST

Expenditure Detail

 

Bin Bank Construction

(Variance due to factoring losses through disaster)

$3,104,000-$4,655,000

Total Expenditure

 $3,104,000-$4,655,000

Source of Funds

 

Approved Budget – General Fund

 $1,105,000

Total income available

 

  $1,105,000

Total Project Capital Cost

 $3,104,000-$4,655,000

Total Available Construction Funding

  $1,105,000

Project Funding Shortfall

$1,999,000-$3,550,000

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts

$ Excl GST

Capital Investment | New

 $3,104,000-$4,655,000 

Annual maintenance and operational costs

$554,030

Depreciation costs

  $29,300

User charges (annual income)

 $551,100

Option 2

There are minimal expenditure requirements for Option 2.

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts

$ Excl GST

Capital Investment | Renewal, Upgrade, New

$45,000

Annual maintenance and operational costs

 $107,666

Depreciation costs

 $2,238.88

User charges (annual income)

 $0

 

 

 

 

Option 3

Item

$ Excl GST

Expenditure Detail

 

Engagement and Consultation

$50,000

Planning Costs

$19,000

Site Establishments

$0-15,000

Semi-automated System and Services

$445,000-$610,000

Site Access Controls and Security

$15,000-$30,000

Landscaping and Signage

$0-$10,000

Renewable Power

$0-$50,000

PM Costs

$219,730

Contingency

$79,350-$110,100

Rollout @additional localities

Contingent on trial success

$250,000

Total Expenditure

 

$1,078,080-$1,363,830

Source of Funds

 

Approved Budget – General Fund

$1,105,000

Total income available

 

 $1,105,000

Total Project Capital Cost

$1,060,400-$1,346,150

Total Available Construction Funding

$1,105,000

Project Funding Shortfall

$26,920 to -$258,830

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts

$ Excl GST

Capital Investment | New

$1,346,150

(Upper estimate) 

Annual maintenance and operational costs

 $62,600

Depreciation costs

 $15,000

User charges (annual income)

Options for fees and charges under consideration

$62,600-$250,000

Legal /Policy

Council operates and controls waste management activities within a framework of Commonwealth, State and Local Government policy and legislation. Waste and recycling depots are regulated by the Protection of the Environment Operations Act 1997 and Council has licenses in place with the NSW Environment Protection Authority that regulate activities.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Council’s Community Strategic Plan (CSP) provides Council’s vision, goals and strategies for the next 10 years. It describes how the community’s priorities and aspirations will be delivered, and is supported by the Resourcing Strategy outlining cost, assets, people and time required to deliver the strategy. The CSP clearly reflects the community’s desires, targeting minimisation of waste to landfill and increased reuse, recycling and resource recovery.

The CSP Strategies C.3. “Collaborate with partners and our community to support innovative approaches to waste minimisation and increase reuse and recycling opportunities” and D.2. “Provide infrastructure and services to meet needs of residents in our towns, villages and rural areas” achieve the sustainable development goals 9 Industry Innovation and Infrastructure, 10 Reduce Inequalities, 11 Sustainable Cities and Communities and 12 Responsible Consumption and Production.

Council’s waste strategy is a ten-year guide for delivering improvements in recycling and reducing waste to landfill. The strategy, adopted by Council in 2018, identifies significant opportunities for improving diversion of waste from landfill by encouraging waste avoidance and reduction and by delivering new initiatives to increase recycling and resource recovery. Not only does recycling and resource recovery provide direct and indirect commercial returns, reduction in waste to landfill lowers site operating costs, whilst also adding useful life to landfill assets and reducing net environmental impacts.

The recommended Option 3 continues to achieve the Council’s waste diversion strategy, albeit differently to how it was originally envisaged.

Environment and Climate Change

Recycling is a well-established national practice, with known positive impacts on the environment through the recovery of resources and a reduction in waste to landfill. As the next step to waste management, the Commonwealth Government has established waste diversion targets, to further strengthen a commitment to a waste-less society. Reuse is now highest on the waste agenda, underpinning a circular economy, and building community resilience through local employment opportunities and value-adding to marketable commodities at a local level. As opposed to landfilling, investing in waste reuse and diversion infrastructure at a local level allows Council to minimise reliance on long-haul waste transport, thereby establishing a lighter footprint and supporting Council’s commitments under the adopted Clean Energy Plan 2019-2030.

Council’s adopted Climate Resilience Strategy 2050 recognises that every decision about the future of the Shire, each new policy approach or new project, should build the resilience of the places and individual communities touched by these decisions. Council’s decision to support a circular economy through waste diversion and reuse, helps to achieve those objectives.

The original Council reports sought to consolidate sites. The recommended Option 3 presented in this report pilot’s low cost, low infrastructure, high technology options that can be rolled out at sites cross the shire. The concentrating of waste management activities to fewer sites means a greater level of control and ease of supervision whilst reducing Council’s overall environmental footprint, operating costs and the risk of events through operations.

Opportunities to divert waste from landfill through resource recovery prolongs the life of Council’s existing landfill and any associated expansion to landfill capacity at the CWF.

Economic

The 2018 National Waste Policy references that, on average, every 10,000 tonnes of waste material equates to either 2.8 landfilling jobs, or 9.2 recycling jobs. By focusing on resource recovery, Council can contribute towards creating a local circular economy and help drive employment, with long-term economic, social and environmental benefits. This transition will generate jobs, increase the robustness of the local economy, increase the accessibility of goods, maximise the value of resources and reduce waste and Green House Gas (GHG) emissions.

A circular economy involves adding value to our waste resources by getting as much use out of products and materials as possible and reducing the amount of waste we generate. For example, using recycled materials in manufacturing, repairing household goods before buying new ones or repurposing items that are no longer used.

Risk

Project staff have completed a comprehensive risk assessment in accordance with Council’s Enterprise Risk Management framework. The results of the project risk assessment and updated cost estimate informed this report.

There is a very high risk that proceeding with Option 1 will not deliver the intended benefits (enabling the closure of Council’s low impact, high-cost waste transfer stations) and that the significant cost of delivering bin bank infrastructure is not value for money. There is also a risk that if the infrastructure is delivered, it will need to be expanded to accommodate FOGO by 2030 and is very susceptible to bushfire fire risk.

Option 2 still carries medium-high risks. Whilst the option is low cost, it reinforces community inequality, fails to remediate a fire affected site, and does not deliver on Council’s waste diversion strategy.

Option 3 still carries medium-high risks. It balances risks by adopting a pilot approach to technology adoption and is intended to be scalable and re-deployable. It also provides an opportunity to learn and refine Council’s waste’s transfer station operations based on the results of the pilot. It addresses community inequality by restoring a level of service to a fire affected community. Importantly it continues to delivery on Council’s adopted strategy, albeit differently to how it was originally envisaged. The risks remain that the higher technology option may result in further project delays, and technical complexity.

Social / Cultural

Eden and Bermagui transfer stations may still be transformed and act as community spaces, which support collaboration, education and opportunity. These spaces may be used for men’s sheds, school groups, skills training and sustainability workshops – opportunities to bring communities together.

Transition plans for Candelo and Wallagoot can still be progressed, and other sites – Bemboka and Merimbula can be assessed based on project delivery learnings.

Supporting the circular economy creates opportunity for local community groups to work together towards a shared vision. Local indigenous groups could be supported via partnerships, bringing and sharing skills, whilst working together.

Attachments

1.         A4 Flyer Cobargo Waste Transfer Station

2.         Cobargo Community Meeting 15 March - Presentation

3.         Cobargo Community Meeting 15 March - Summary

4.         Cobargo Community Meeting - Feedback Sheet Responses

 


Council

19 April 2023

Item 9.2 - Attachment 1

A4 Flyer Cobargo Waste Transfer Station

 

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Council

19 April 2023

Item 9.2 - Attachment 2

Cobargo Community Meeting 15 March - Presentation

 

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Council

19 April 2023

Item 9.2 - Attachment 3

Cobargo Community Meeting 15 March - Summary

 

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Council

19 April 2023

Item 9.2 - Attachment 4

Cobargo Community Meeting - Feedback Sheet Responses

 

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Council 19 April 2023

Item 9.3

 

9.3Request for Tender (RFT) Merimbula Sewage Treatment Plant (STP) Aeration Tank Upgrade     

This report details the outcome of the evaluation of tenders received in response to Request for Tender (RFT) 2223-045 Merimbula Sewage Treatment Plant (STP) Aeration Tank Upgrade. 

Director Assets and Operations  

Officer’s Recommendation

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

2.    That Council accepts the tender from <insert> in relation to contract for the works described in tender RFT 2223-045, in the amount of <$insert> (including GST), subject to variations, provisional sums and prime cost items.

3.    That authority be delegated to the Chief Executive Officer to execute all necessary documentation.

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

 

Executive Summary

This report details the outcome of the evaluation for RFT 2223-045 Merimbula STP Aeration Tank Upgrade.   

The procurement process has been carried out in accordance with standard Council procedure. RFT 2223-045 was advertised on 15 February 2023 via Council’s Website and the VendorPanel marketplace. The request was released as an Open Tender. A compulsory site meeting was held at Merimbula STP on 23 February 2023 where 3 distinct companies attended. Tender submissions closed on 15 March 2023 with 2 submissions received from:   

 

·    Dekort Systems Pty Ltd.  

·    Sapphire Coast Engineering Pty Ltd.  

 

The results of the detailed evaluation of each tender submission are consolidated in the confidential memo attachment. The project is funded by the Sewer fund and has been included in the 2022/23 financial year budget.  

Background

Merimbula STP was commissioned in 1985. Merimbula STP services Merimbula, Pambula, and surrounding areas with an equivalent person capacity of 15,500. Merimbula STP treats on average 3.287 ML of raw sewage per day making it the largest treatment plant in the Bega Valley Shire. Raw sewage enters Merimbula STP, is screened through the inlet works then enters two large aeration tanks where the biological wastewater treatment process occurs. 

In 2021 Merimbula STP Tank Two was emptied and successfully upgraded with all joints and cracks resealed and repaired, baffles replaced and a concrete block for a new waste pump constructed. 

Merimbula STP Tank One was last emptied in 2014, with large amounts of sand, grit, and rags being removed. Since this date, Merimbula STP Aeration Tank One has not been emptied, with maintenance on the concrete joints and cracks not able to be undertaken. The existing baffles were installed in 1985 and have reached their end of serviceable life. No provision has previously been made for a concrete block so the waste pump can be secured correctly. 

The identified assets in RFT2223-045 have reached the end of their serviceable life and are showing signs of increased maintenance and repair to remain in efficient operation. Renewing these assets will reduce the risk to public health and the local environment. 

The benefits of upgrades to Merimbula STP Tank One include: 

 

·    the removal of grit, sand, and rags which increases biological volume improving efficiency and capacity for increased flows associated with weather events and holiday periods. The removal of rags also reduces the potential of the waste pump blocking

·    repairs and resealing of all concrete joints prolong tank life and seal any potential leaks to the environment

·    baffle replacement assists in the efficiency of the aeration process, preventing sludge and mixed liquor from building up in one area

·    the concrete block, for mounting the new waste pump, will be a more secure and robust system which will allow the installation of rails for easier servicing and maintenance

·    the installation of a new decanter rubber reduces the risk of existing decanter rubber failure and possible sludge carryover.

 

A tender specification was developed to attract contractors who can undertake works of upgrades to Merimbula Aeration Tank One. The scope of this tender includes the following items: 

·    Removing sludge, sand grit, and rags from Aeration Tank One    

·    Repair concrete joints  

·    Baffle repair and replacements   

·    Concrete footing construction (for mounting the new waste pump) 

·    Required testing and commissioning  

·    Installation of decanter rubber 

 

Two responses were received, and a tender evaluation was completed on 16 March 2023.  

The tender submissions were assessed against the following evaluation criteria:  

 

 

Criteria

Weighting

Lump sum price breakdown

50%

 

 

Criteria

Weighting

Construction arrangements

10%

Construction program

5%

Recognition of local outcomes

5%

Indigenous business development

3%

Experience completing similar projects

10%

Work health and safety, quality and environmental management qualifications

7%

Demonstrated capacity to undertake a project of this scale

10%

 

   

Criteria

Weighting

WH&S

compliant

 

Options

1.    Accept the preferred conforming tender. 

This option represents the best value for money and aligns with desired construction timeframes.  

This is the recommended option

 

2.    Decline all tenderers  

This option presents a risk with delayed renewal works of assets at the end of their serviceable life expectancy.  

Community and Stakeholder Engagement

Engagement undertaken

Consultation was undertaken with all internal stakeholders from the Water and Sewer Services (WaSS) Team.  

Relevant stakeholders from the WaSS Treatment and Network team were present at the mandatory pre-tender site meeting to consult directly with interested tenderers. 

Engagement planned

Bega Valley Shire Council (BVSC) Treatment Team is required to notify the Environmental Protection Agency (EPA) of proposed works.  

Financial and Resource Considerations

This project has funds committed in the 2022/23 financial year budget.

Legal /Policy

The tender process complied with the Local Government Act 1993 and the Local Government (General) Regulation 2005. 

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Delivery Program: C1.1 - Operate a contemporary local water utility that enables sustainable development, supports social wellbeing, and protects the environment. 

C1.1.2 Operate and maintain water supply and sewage network systems to meet health and environmental regulatory requirements and level of service objectives - Network systems compliant. 

Environment and Climate Change

Undertaking the upgrades on Aeration Tank One will increase the quality of the effluent and provide greater control on the Waste Activated Sludge (WAS) which in return will reduce the phosphorus in the effluent.   

While Tank One is offline, the BVSC Technical Services team will refurbish the aerators, increasing the efficiency of dispersing air throughout the tank. This will provide an improved denitrification process which will reduce both the ammonia and nitrogen levels of the effluent.  

The removal of grit, sand, and rags increases biological volume, providing improved efficiency and capacity for increased flows associated with weather events and holiday periods. This will also improve effluent quality and reduce the risk of sludge carryover into the decanter with the removal of rags reducing the potential of the waste pump blocking.

Economic

Undertaking the maintenance work on Aeration Tank One will increase the life of the tank and improve the effluent quality. Every year BVSC pays a pollution fee based on the quality of the tested effluent. By making the changes to the system, fixing the baffles, and removing the existing grit, sand, and rags from the bottom of the tank, it is expected that effluent quality will increase. This will result in lowering our annual return costs.

Risk

There is an operational risk if we experience a major rain event during the 3 months that the work is scheduled. As Tank One will be offline due to the works, there is a small chance that Tank Two may not have the capacity to complete the full treatment process of increased flows.  This risk has been managed by undertaking the works during off-peak periods for tourists where flows are low. Alum will also be used to help the biomass settle quicker in the online Tank Two enabling longer decant times for such an event. 

Social / Cultural

The proposed works will improve the effluent quality for both the outfall and the reuse going to the Merimbula Pambula Golf Club. 

Attachments

1.            CONFIDENTIAL ATTACHMENT Request for Tender (RFT) 2223-045 (Confidential - As this attachment contains commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret as per Section 10A(2)(d) of the Local Government Act 1993.

 

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

 

 

 


Council 19 April 2023

Item 9.4

 

9.4Bega Valley Local Traffic Committee     

This report provides the adopted minutes of the Bega Valley Local Traffic Committee from the meeting held on 7 March 2023.

Director Assets and Operations  

Officer’s Recommendation

That Council receive and note this report and the Bega Valley Local Traffic Committee minutes attached to this report. The minutes contain no recommendation for Council action, however there were a number of actions assigned to Councillor Porter to follow up.

 

Executive Summary

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

It is a requirement for Council to formally adopt the recommendations from this Committee prior to action being taken. No recommendations for Council action were made at the meeting held on 7 March 2023.

Background

No submissions for Council action were received at the meeting held on 7 March 2023.

 

As a member of the Local Traffic Committee, Councillor Porter took the following actions:

·    To take the matter of parking at Merimbula airport to Council for further consideration

·    To discuss at Council which types of events need to submit a Development Application due to safety considerations for parking and pedestrians

Options

That Council receive and note this report

Community and Stakeholder Engagement

Engagement undertaken

There was no community engagement undertaken in relation to this report.

Engagement planned

There is no further engagement planned in relation to this report.

Financial and Resource Considerations

There are no additional financial and resource considerations associated with this report

Legal /Policy

There are no legal/policy to refer to in this report

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

There are no significant strategic, asset management plan or risk issues associated with this report

 

Environment and Climate Change

There are no environmental considerations associated with this report

Economic

There are no additional economic benefits/impacts associated with this report

Risk

There are no additional risks to Council associated with this report

Social / Cultural

There are no additional social/cultural considerations associated with this report.

Attachments

1.         Bega Valley Local Traffic committee minutes 7 March 2023

 


Council

19 April 2023

Item 9.4 - Attachment 1

Bega Valley Local Traffic committee minutes 7 March 2023

 

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Council

19 April 2023

 

 

Staff Reports – Business and Governance

 

19 April 2023

 

10.1            Brogo to Bermagui water trunk main easement.............................................. 250

10.2            Civica Software Licence and Services Agreement Execution............................ 254

10.3            Enterprise Resource Platform (ERP) Future...................................................... 259

10.4            Extension of tenure - Discovery Holiday Parks Pambula Beach....................... 269

10.5            Road Closure - Section of unconstructed road off Oliver Street, Bemboka..... 273

10.6            Road transfer Voluntary Planning Agreements................................................ 289

10.7            Robyn's Nest Deed of Management and Licence............................................. 298

10.8            Audit, Risk and Improvement Committee Quarterly Report March 2023........ 307

10.9            Tathra Beach Kiosk............................................................................................ 312

10.10          Social procurement initiatives........................................................................... 318

10.11          Exhibition of the Integrated Planning and Reporting documents.................... 323

10.12          Certificate of Investment March 2023.............................................................. 559

10.13          Australian Local Government Association (ALGA) 2023 National General Assembly     565


Council 19 April 2023

Item 10.1

 

10.1. Brogo to Bermagui water trunk main easement     

Council approval is being sought to formalise the acquisition of an easement for a water trunk main pipeline over private land at Verona.

Director Business and Governance  

Officer’s Recommendation

1.    That Council enter into a formal Deed of Agreement with the landowners of Lot 16 DP 251607 at 24 Upper Brogo Road, Verona for the acquisition of an easement for a water trunk main pipeline for a value of $7,300 plus GST.

2.    If the acquisition of an easement over Lot 16 DP 251607 cannot be negotiated by agreement with the landowner within a reasonable time, Council acquire an easement by compulsory process under the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) pursuant to sections 186 and 187 of the Local Government Act 1993 (NSW), and do all things supplemental or incidental to, or consequential for, that purpose.

3.    That all costs associated with the creation of the easement including the landowners and Council’s legal costs, survey work, plan preparation and registration fees be borne by Council.

4.    Council affixes the Seal of Council to any documents required to be sealed relating to the acquisition of an easement and that authority be delegated to the Mayor and Chief Executive Officer to execute those documents.

5.    Authority be delegated to the Chief Executive Officer to execute on behalf of Council any documents associated with the acquisition of easements not requiring the affixing of the Seal of Council.

 

Executive Summary

This report details the need to formalise the acquisition of an easement for a water trunk main pipeline over private land at 24 Upper Brogo Road, Verona to protect Council’s interest in the land.

It is a requirement under the Local Government Act 1993 (NSW) (LG Act) that Council resolve to acquire land and interests in private property.

Background

Council received correspondence from legal representatives of the landowners of Lot 16 DP 251607 at 24 Upper Brogo Road, Verona to advise a section of the Brogo- Bermagui water trunk main pipeline is traversing their property. The landowner intends to build on their property and have requested Council to provide a survey plan showing the precise location of the pipeline. Upon investigation by Council officers, it was determined the pipeline had not been surveyed nor had a formal easement been registered over the pipeline through the private land.

The landowners advised they would be prepared to negotiate terms for such an easement at Council's cost, and that they be permitted to connect to the trunk main to provide water for their home.

Council officers replied to the landowners stating council procedures prohibit additional connections to this main and there is also insufficient capacity in this main to support new connections, however council would progress the acquisition of an easement for the pipeline traversing their land.

Following a competitive request for quotation process Council officers engaged Jack Atkinson Surveying to prepare a plan to accompany a Transfer Granting Easement which will be registered at NSW Land Registry Services. A copy of the plan is attached for the information of councillors.

Options

The options available to Council are:

1.    Proceed with the acquisition of an easement over Lot 16 DP 251607 at 24 Upper Brogo Road, Verona as detailed for the purposes of protecting Council’s water infrastructure; OR

2.    Advise the landowners that Council does not agree to progress the acquisition of an easement over its infrastructure.  Noting this option does not protect the future of Council’s water trunk main pipeline in the private land parcels.

Community and Stakeholder Engagement

Engagement undertaken

Consultation with the landowner through their external legal providers, surveyor and valuer has taken place since mid-last year in relation to this matter.

Engagement planned

Council officers will continue to consult with the landowner and legal representatives to action the resolution of council.

Financial and Resource Considerations

Council is responsible for all costs associated with establishing the easement, including survey work, plan preparation, registration fees and legal costs (including the landowners reasonable legal costs capped at $3,500). All costs associated with creation of the easement will be funded from Council’s water fund.

A formal market valuation has been obtained from IPN Valuers to determine the compensation payable to the landowners pursuant to the provisions of the Land Acquisition (Just Terms Compensation) Act 1991 (NSW) (LAJTC Act). The valuation provides a compensation amount of $7,300 plus GST to the owners of Lot 16 DP 251607.

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

Legal /Policy

It is a requirement under the LG Act that Council resolve to acquire land and interests in private property.

The LAJTC Act requires negotiation with landowners for at least 6 months to acquire land and interests in land by agreement. If BVSC cannot reach agreement with the landowner once 6 months has passed it is proposed to proceed with compulsory acquisition of an easement over the Council infrastructure. If agreement cannot be reached, the Governor of NSW can approve a compulsory acquisition. The Valuer General will then determine the amount of compensation payable.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Bega Valley Community Strategic Plan 2040:

·    D.1 Plan for community infrastructure and services that will meet current and future needs.

Delivery Program 2022-25:

·    D1.1 - Plan for asset capital works

·    D1.3 – Develop maintenance programs for infrastructure assets

·    E5.5 - Develop and manage Council’s owned and managed land portfolio.

Environment and Climate Change

There are no environmental or climate change concerns associated with the proposed acquisition of the easement.

Economic

There are no additional economic matters associated with the proposed acquisition of the easement that is not already addressed in this report.

Risk

In accordance with Council’s acquisition and disposal of land procedure, acquisition of land and interests in land by BVSC requires a formal process that ensures probity, due diligence, analysis of risk and other key issues.

Social / Cultural

There are no social / cultural matters associated with the proposed acquisition of the easement that is not already addressed in this report.

Attachments

1.         Easement plan Lot 16 DP 251607

2.            IPN Valuation Report - 24 Upper Brogo Verona (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

19 April 2023

Item 10.1 - Attachment 1

Easement plan Lot 16 DP 251607

 

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Council 19 April 2023

Item 10.2

 

10.2. Civica Software Licence and Services Agreement Execution     

This report is presented to Council for consideration and endorsement of executing a Services Agreement for Council’s current Enterprise Resource Platform (ERP) solution.

Director Business and Governance  

Officer’s Recommendation

That Council endorse the execution of the revised Civica Contract (attachment 1), for a period of 3 years noting:

·    this satisfies the recommendations and risk mitigation actions recommended by Council’s Audit Risk and Improvement Committee (ARIC)

·    the revised contract does not commit Council to any additional expenditure than is already agreed under existing yearly agreements

·    the revised contract does not commit Council to upgrading its existing Enterprise Resource Platform with its current vendor (Civica).

 

Executive Summary

This report seeks endorsement of Council to execute the proposed Civica Authority Contract for the provision of an Enterprise Resource Platform (ERP).

Council officers from the Business and Governance Group have liaised with Civica representatives to update the terms of the contract. The contract was presented to the Chief Executive Officer (CEO) in December 2022.

The contract was also presented to the Audit Risk and Improvement Committee (ARIC) on 14 March 2023, who resolved that the proposed contract represented a reasonable service agreement and supported its execution.

It was agreed the contract would be presented to Council for endorsement. 

Background

This report relates to tenders 06/08 and 02/18 and the resolutions made by Council at the meetings held on 23 December 2008 and 12 October 2018 respectively. On both occasions tenders were received from multiple vendors for the provision of an Enterprise Resource Platform (ERP). Council resolved not to proceed with any tender submissions, but instead enter direct negotiations with the incumbent provider – Civica.

An initial contract was entered into in March 2009, which has continued on an annual term from 2014. The current agreement has organically transformed as additional services were required and has resulted in some challenges managing the contract, vendor, and budgeting for annual renewals which occur sporadically throughout the year.

In 2018, Council completed an approach to market to review and test the services offered across multiple vendors.  Upon completion of the tender process, it was resolved by Council to decline all tenders and remain with Civica noting they still represented the best vendor and solution for our needs.

An external audit in 2021 highlighted risks associated with Contracts without Service Level Agreements. The Audit Risk and Improvement Committee (ARIC) requested that Council review its Enterprise Resource Platform contract and recommended service levels be included in the contract.

In 2022, as requested by ARIC, Council officers from the Business and Governance Group commenced a process to renegotiate the existing agreement with Civica to include Service Level Agreements and clarify the services offered and delivered under the contractual agreement.

On completion of the negotiations the contract was presented to the Chief Executive Officer for execution. It was agreed Council endorsement should be sought prior to signing the revised contract.

Options

The following options have been considered for the revised contract and recommend Council proceeds with Option 2.

 

Option 1 – do not execute the revised contract

 

This represents ineffective use of council resources and does not resolve the risks raised by ARIC leaving the Council with an outdated, largely varied contract with no agreed service levels.

Council officers have considered the risks associated with not revising the terms of the contract and do not believe the risks associated with Civica increasing service charges above the agreed CPI +2% represent a greater threat and consequence than continuing to operate under an outdated contract with no service level agreements in place.

Option 2 - proceed with the revised contract (recommended option)

 

Council officers are confident the revised contract represents a reasonable service offering and the "direct negotiation" method of procurement is proven to be common practice (as confirmed by a review of the GIPA Contract registers for Government agencies procuring type 2 software related services). The execution of this contract will consolidate all Civica provided licensing into one contract, simplifying invoices and contract management activities, providing better oversight of our contracted solutions (such as Authority, Reflect, Content Manager).

Community and Stakeholder Engagement

Community engagement is not required with regard to this report and its recommendations.

Engagement undertaken

The development and execution of this revised contract was encouraged and prompted by Council’s Audit Risk and Improvement Committee following the 2021 External Audit finding that our software contracts were without service level agreements. The finalised contract has been reviewed and endorsed by ARIC.

When preparing this report, representatives from the Business and Governance Group engaged with members of the procurement team, the Chief Executive Officer, as well as IT professionals from other councils. Advice and review of the contract material was also provided by Gartner, an external IT consultant.

Engagement planned

No additional engagement is planned regarding this report and its recommendations.

Financial and Resource Considerations

There are no new financial or resource considerations for the execution of the revised Civica contract. This contract does not increase Council’s software licence costs above what is already in place.

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts

$ Excl GST

Annual maintenance and operational costs to continue under current arrangement

 

$66,000

Legal /Policy

The above-mentioned options and recommended actions are in line with Council’s procurement obligations specified under Section 55 of the Local Government Act 1993.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The Enterprise Resource Platform is at the core of many of Council’s business operations, including client facing services, financial management, staff management, workflow management.

Upgrading or replacing Council’s Enterprise Resource Platform is included as a deliverable within the 2021/22 Information Technology operational plan. Execution of this contract will best place Council to negotiate continued support during a project and mitigate the potential risks of unsupported systems.

CSP Theme
Our Civic Leadership – Local leadership is strong, consultative, and responsive to our community needs.

CSP Strategy E5
Council resources are management in order to meet agreed service delivery standards and deliver value

Delivery Program E5.3
Maintain and improve corporate information, communication and technology services and systems in alignment with the Digital Strategy

Operations Plan E5.3.1

Establish ERP upgrade / replacement project

Environment and Climate Change

There are no environmental or climate change related impacts from executing the Civica contract.

Economic

There are no known new or additional economic constraints or issues related to the execution of the Civica Contract.

Risk

The risks from executing the proposed agreement have been assessed and are considered minimal. The new agreement ensures Council’s contract for the provision of its Enterprise Resource Platform solution represents the services as they stand today. This reduces potential risks associated with contract and vendor management by ensuring the contract represents the services Council receives and can expect, including the implementation of service level agreements. Updating the contract is a task which should have been completed following the 2018 approach to market, and this contract provides the opportunity to do so now.

The other risks associated with the recommendations within this report are outlined below.

Pricing

This contract does not introduce additional charges that are not applicable under Council’s current agreement. This contract specifies that annual charges will incur CPI +2%, which is standard for the type of services offered. Fees and Charges have been consolidated and standardised under this agreement, increasing visibility and ease of management for annual charges, which are currently applied sporadically through the year.

Service definition, inclusions, and term

The services defined under the updated contract are specific to Bega Valley and no other known councils have requested a review of their current contracts. This contract does not commit Council to upgrading its solution, it simply provides a modern-day agreement for existing services reducing operational risks of outdated and non-Service Level Agreement contract. The term of 3 years has been recommended based on value for money as shorter-term contract incur additional expenses.

Procurement due diligence

Council has shown financial responsibility and procurement due diligence by reviewing its existing agreement and working to modernise it in line with ARIC’s recommended actions following the External Audit finding of 2021.

The recommendation to update its current contract with its existing provider is made based on section 55(3)(i) of the Local Government Act 1993, which states requirements for tenders do not apply to the following contracts:

‘… a contract where, because of extenuating circumstances, remoteness or locality or the unavailability of competitive or reliable tenderers, a council decides by resolution (which states the reason for the decision) that a satisfactory result would not be achieved by inviting tenders’.

Section 55(3)(i) is applicable due to the resource commitment required to move from Council’s current solution to an alternative one. A change of provider would incur significant commitments in relation to cost, time, and personnel. 

Social / Cultural

There are no known social / cultural related impacts of executing the Civica contract.

 

Attachments

1.            Confidential attachment - Bega Valley Shire Council - Civica - Software Licence and Services Agreement May 2022 FINAL (Confidential - As this attachment contains commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret as per Section 10A(2)(d) of the Local Government Act 1993.

 

Although the above relates more explicitly to the discussion of closed business, it also forms part of the basis of justification as to why information relied upon in informing the public decisions made by Council are kept confidential. To consider this confidential material in open Council would be, on balance, contrary to the public interest (as defined in Section 14 of Government Information Public Access (GIPA) Act 2009). This meets the requirements of Sect 10 D of the Local Government Act 1993 if Council were to close the meeting to discuss the details.

 

 

2.            Confidential attachent - Bega Valley - Civica LG  Support Service Terms - May 2022 (Customer Hosted) (Confidential - As this attachment contains commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret as per Section 10A(2)(d) of the Local Government Act 1993.

 

Although the above relates more explicitly to the discussion of closed business, it also forms part of the basis of justification as to why information relied upon in informing the public decisions made by Council are kept confidential. To consider this confidential material in open Council would be, on balance, contrary to the public interest (as defined in Section 14 of Government Information Public Access (GIPA) Act 2009). This meets the requirements of Sect 10 D of the Local Government Act 1993 if Council were to close the meeting to discuss the details.

 

3.            Confidential attachment - ARIC Risk Management Report - Enterprise Resource Platform Contract (Confidential - As this attachment contains matters affecting the security of the Council, Councillors, Council staff or Council property as per Section 10A(2)(f) of the Local Government Act 1993.

 

Although the above relates more explicitly to the discussion of closed business, it also forms part of the basis of justification as to why information relied upon in informing the public decisions made by Council are kept confidential. To consider this confidential material in open Council would be, on balance, contrary to the public interest (as defined in Section 14 of Government Information Public Access (GIPA) Act 2009). This meets the requirements of Sect 10 D of the Local Government Act 1993 if Council were to close the meeting to discuss the details.

 

 


Council 19 April 2023

Item 10.3

 

10.3. Enterprise Resource Platform (ERP) Future     

This report outlines the emerging risks with Council’s current Enterprise Resource Platform and requests the endorsement of a mitigation strategy that addresses the identified risks.

Director Business and Governance  

Officer’s Recommendation

1.    That Council note the need to update its Enterprise Resource Platform (ERP).

2.    That Council note the 3 options presented within this report for the update of its Enterprise Resource Platform (ERP)

3.    That Council note the benefits and risks associated with each of the 3 options presented within this report.

4.    That Council endorse the adoption of option 2 within this report.

 

Executive Summary

The Enterprise Resource Platform (ERP) is at the core of Council’s business operations. Operating without support of our core business application caries many risks, covering system and data availability, confidentiality, and integrity.  As reported by staff within the Business and Governance Group, Council’s current ERP is nearing end of life (refer to attachment 1).

It is recommended that Council mitigate this risk as a priority, noting an implementation project will take a minimum 2 years to complete. To facilitate management of the ERP positively Business and Governance has considered three options. This report recommends that Council proceed with Option 2, which is to upgrade to Civica’s cloud-based solution – Altitude, via direct negotiation. This option represents the least time to mitigate our risks of operating with an end-of-life solution and has been confirmed by procurement as compliant with Council’s procurement obligations.

Background

The purpose of bringing this report to council is to:

1.    seek endorsement and agreement on a single option for future Enterprise Resource Platform procurement activities

2.    provide oversight of the risks and impacts associated with each considered option.

The report relates to tenders 06/08 and 02/18 and the resolutions made by Council at the meetings held on 23 December 2008 and 12 October 2018 respectively. On both occasions tenders were received from multiple vendors, however, it was resolved to not proceed with any tender submissions, and instead enter direct negotiations with the incumbent provider – Civica.

This report also relates to Councils adopted Digital Strategy, Long Term Financial Plan and FY24 Budget. And builds upon Report – Civica Software Licence and Services Agreement Execution (19 April 2023).

Enterprise Resource Platform (current)

Following the execution of the revised Civica contract (see Council report - Civica Software Licence and Services Agreement Execution), Council officers from the Business and Governance Group were hopeful the contract would facilitate the upgrading of Council’s current on-premises aging Authority solution.

Upgrading to a new version of Authority was considered the solution with the lowest risk to the organisation as it provided continuity of service whilst allowing Council to review the suitability of a managed software as a service offering. It also provided the opportunity to consider the feasibility of Civica’s product over competitors and either plan an approach to market or engage in direct negotiations with Civica.

In January 2023, Civica advised that Council’s current solution was nearing end of life (see Attachment 1). This meant that Civica would no longer be able to provide support (resolution of bugs and data issues or development of revised / new features), regulatory compliance updates and security patching. The effort required to move from the current solution to the next version (7.1) is comparable - time, funding, and business change impact - to a move to the Cloud offering (Altitude). Furthermore, the upgrade path to Altitude is not significantly reduced if moving from 7.1. This has changed the recommended approach for the future of our Enterprise Resource Platform.

Enterprise Resource Platform future procurement

The combination of an end-of-life solution and the potential need to approach the market has introduced an organisation risk of system failure. It will not be possible to conduct a considered and managed approach to market and then an implementation prior to the end-of-life date.

Previous conversations with competitors and fellow councils who have switched vendors have also indicated that a project to migrate and implement a competitor’s product would be take a period of 2 to 4 years. 

It is recommended that Council secure a supported product as soon as possible following the end-of-life date.

Options

Enterprise Resourcing Platform future procurement

Officers from the Business and Governance Group have considered the 3 options for the procurement of future Enterprise Resource Platform. The options are presented below.  solutions options presented in the next section of this report following options and recommend Council proceeds with Option 2 – upgrade to Authority Altitude via direct negotiation. Should Council wish to seek additional assurance, an independent advisor could be engaged to specify Councils requirements, review potential vendors and products and make a recommendation on the best fit for Council.

Option 1 - upgrade to Authority 7.1 on premise solution via direct negotiation

We do not recommend this option. Civica have advised that Authority 7.1 will have an end-of-life date in the near distant future, proceeding to 7.1 would knowingly commit Council to future projects requiring additional financial commitment and disruption to business operations and staff. This upgrade would also take 18 months to implement and carry a similar cost and effort to an Altitude upgrade presented in option 2.

Option 2 - upgrade to Authority Altitude (cloud platform) via direct negotiation

We recommend this option. This option allows Council to mitigate the risks associated with our end-of-life solution in the quickest and most cost-effective way. It also allows Council to achieve some of our digitisation goals, by leveraging capabilities within the Civica platform for a potentially lower cost than implementing standalone solutions. This approach aligns with Council’s IT investment principles - utilise existing solutions first - and assists in simplifying and standardising the IT ecosystem, which is one of the organisation’s Digital Strategy objectives and measures. This approach is support by the demonstrated common practice (GIPA Contract register) and the end of support nature of our current solution meeting extenuating circumstances (Section 55 of the Local Government Act).

The following benefits would be achieved as a result adopting option 2:

1.    increased system performance, scalability, and monitoring

2.    reduced technical administration (patching and infrastructure maintenance) required by Council staff.

3.    increased security features and protections.

4.    increased compatibility and integration options with other core business systems

5.    increased business efficiencies due to reworked / simplified business workflows and adoption of system processes rather than system customisation

6.    increased digital capabilities and adoption of modern technology, providing the foundation for Digital Transformation

7.    improved data quality and confidence in our data (and decision making)

Failure to proceed with this option will result in extended exposure to the risks associated with end-of-life solutions.

Option 3 - approach the market

We do not recommend this option. As has been demonstrated and confirmed by the Council’s 2008 and 2018 approaches to market, the cost of implementing a new system is far higher than continuing to upgrade an existing solution. The 2008 and 2018 tender processes were extremely detailed and involved considerable staff time, due to stakeholders from across the organisation being required. It is expected that a similar process commencing now would be a minimum 12 month effort and significantly reduce the capacity of key stakeholders during this time.

Based on market research and a review of fellow Councils, it is known that Civica and TechOne are the market leaders in Enterprise Resource Platforms for councils. It is therefore assumed that an approach to market would result in a contract with either of these supplies. Civica have advised the implementation of their Altitude solution is an 18-month long project with approximately 1000 days of effort required by the council client. Taking the potential go live date out to the end of 2025.

TechOne have estimated the process to take 2 - 4 years and cost upwards of 4 million dollars with a potential Go-live date range of 2026 - 2028. Additionally, if Council was to move to an alternate solution, it would need to consider the impact this has on integrated solutions, such as ESRI (our geospatial information system), as the TechOne model is to provide a complete solution potentially reducing the capabilities currently available to Council.

Given the Council’s current financial situation combined with staffing capacity across the business lines and the end to support for our Authority solution, it is favourable to reduce procurement costs, limit the impact of Enterprise Resource Platform changes on staff and resolve the risks of end-of-life solutions as soon as practicable. Exposing the Council to additional procurements costs, increased demands on staff capacity and extended exposure to end of life core business systems solutions is not recommended.

Additionally, Civica Authority is our key business system, or in the context of cyber security our "Crown Jewels". We need to protect Council assets at every opportunity possible. Continuing to operate with end-of-life solutions whilst we fulfil a procurement obligation is risking our "Crown Jewels".

Additional options for probity and assurance

If Council feel there is a need to validate Civica as the preferred supplier, an independent market test could be commissioned. Initial discussions with a proven vendor have estimated this work as three 3-4 months effort at a cost of $30,000 - $40,000. This would still represent a reduced cost option compared with an approach to market and could be coupled with Option 2, to guide our direct negotiations with Civica. It should be noted that this would delay contract negotiations and implementation of the chosen solution for at least a further 3-4 months, making the earliest delivery date the second half of 2025. During this time, Council would operate with an unsupported Enterprise Resource Platform.

Community and Stakeholder Engagement

No external Community engagement was undertaken in developing this report.

Engagement of external vendors, partners and fellow councils was undertaken and outputs from this process were considered in the development of this report.

Engagement undertaken

Vendor / Partner Engagement: Civica

Council officers regularly discuss the future of our Enterprise Resource Platform with Civica. It is through these conversations that Council is made aware of the end-of-life status of its existing solution and the resource needs associated with a move to either 7.1 or Altitude as well as the potential benefits of an upgrade.  

Vendor Engagement: TechOne

Council officers have engaged with TechOne and TechOne partners about the feasibility of a TechOne solution for our business needs. Whilst it has been confirmed as a suitable product for Council’s business requirements, the time, business impact, and investment required to facilitate a move from Civica to TechOne does not represent an immediate return in investment. TechOne has provided details on a potential project cost, time, and effort, as considered by this report.

Advisory Engagement: Procurement (internal Council business line)

Discussions with Council’s Procurement officers have confirmed that it is common practice to re-engage the same vendors term after term.  As per Section 55 of the Local Government Act 1993 and validated by common practice (review of the GIPA Contract Register) in local government for IT services, Council is not obligated to go to market for a renewed Enterprise Resource Platform agreement if we wish to remain with our current vendor. This has been considered by this report.

Advisory Engagement: Other Councils

Engagement with Bundaberg Council has confirmed that the move to Civica Altitude has directly enabled the achievement of their Digital Transformation, IT Strategy, and Corporate Goals.

Engagement with Shellharbour and Queanbeyan councils has confirmed that a project to deliver the TechOne solution will take multiple years and upwards of 4 million dollars. Both councils also noted the effort required to manage the major disruption to business if a move from Authority to TechOne (or another competitor product) was the chosen path. Queanbeyan also noted they decided to remain with TechOne rather than approach the market due to the effort required to facilitate a move being counterproductive to any potential efficiencies gained (in moving to a competitor’s product). These lessons and observations have been considered in preparing this report.

Advisory Engagement: CSS Consultancy

CSS is a consultancy firm with proven experience in market tests and feasibility studies. Initial conversations with them have indicated that a market review and report would take approximately 3-4 months and carry a cost of up to $40,000. This indicative time and cost have been considered in preparing this report.

Engagement planned

Following the adoption of an Option, Council officers will establish the relevant business engagement groups and governance models to inform and guide the delivery of the chosen option.

If option 2 is supported, an Altitude Project team will be established (indicative costs for Project Manager, Business Process Modeller / Analyst, and Data Analyst are provided below), key business line contacts and subject matter experts will be identified, and commitment of time will be sought from the appropriate Managers.

Reporting will follow the Council’s project management framework and Pulse will be used to manage the delivery. 

Financial and Resource Considerations

The financial and resource considerations for option 2 are included in the following section of this report. Option 2 represents the most financially sustainable and responsible use of Council resources. It also allows Council to move forward with its Digital Transformation whilst keeping pace with global technology trends and community service delivery expectations. This option is not only cheaper than an approach to market (option 3) it is also achievable in a much shorter period of time, reducing the Councils exposure to unnecessary risk.

Indicative costs of all considered Options are provided below for context only. It should be noted all costs will need to be further scoped and confirmed during a project start up.

Option #

description

Implementation Costs $

Operational Costs (ongoing) /pa $

Option 1 - upgrade to Authority 7.1 on premise solution via direct negotiation

Procurement probity, project establishment and project implementation / transition to operations for an upgrade to 7.1. This would require the same investment and input as a move to Altitude (see detailed costings below).

800,000 / 2 years

 

 

 

 

367,000

Option 2 - upgrade to Authority Altitude (cloud platform) via direct negotiation

Procurement probity, project establishment and project implementation / transition to operations for a move to Altitude Cloud.

(see detailed costings below).

800,000 / 2 years

 

 

 

 

367,000

Option 3 - approach the market

Indicative costs for an approach to market, assuming an alternate vendor is chosen.

-      Approach market (100,000k – internal resources + possible external consultant to support)

-      Project resources (1M)

-      Software costs and Software Implementation / project costs (3M)

4.1M+ / 3 years

 

 

 

 

 

 

1M

Additional options for probity and assurance

40,000

 -

 

Option 2 - upgrade to Authority Altitude (cloud platform) via direct negotiation (recommended)

The following table outlines the financial and resource considerations for Option 2 - upgrade to Authority Altitude (cloud platform) via direct negotiation.

Item

$ Excl GST

Expenditure Detail 

Business process modelling

78,000

Market test engagement (optional)

40,000

Altitude Implementation

200,000

Project Management expertise

212,000 (spread over two year)

Change Management expertise

95,000

Upgrade to Content Manager (recommended to complete prior to Altitude project)

25,000

Civica Timesheets module

44,000

Civica Contract Management module

10,000

Data Analyst / Migration consultant

106,000

Council staff Subject Matter Experts (time committed to project – requirements definition, business process modelling, training)

TBA

Total Expenditure

766,000

 

 

Source of Funds

 

Proposed FY24 Budget

800,000

Total income available

800,000

 

 

Total Project Capital Cost

0

Total Available Construction Funding

0

Project Funding Shortfall

-

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts

$ Excl GST

Annual maintenance and operational costs

This includes the licencing for Authority (+ all added on modules – Reflect, BIS etc) and Content Manager.  

Software as a Service - $166,000 / annum*

*this represents an increase to our existing base licensing of $66,000 per annum, to cover the costs associated with changing from an on-premises install to a managed software as a service (software, hosting and support) offering – total cost per annum will be $166,000.

Additional costs and impact to business operations related to staff involvement in the project will be outlined in a project plan, which will be established once an option is adopted. All service areas and teams of Council will have some level of involvement. As a general guide, it could be expected that each team will need to provide input into the following activities:

1.    requirements definition (in the form of either workshops or review of specifications)

2.    business process review (in the form of both workshops and review of specifications)

3.    training (in the form of face-to-face sessions and self-paced education)

4.    testing (in the form of face to face and self-paced)

5.    change Management (in the form of requirement discussions and training)

6.    transition to Operations (day 1 readiness / teething)

Legal /Policy

This report relates to Section 55 of the Local Government Act 1993, as well as the NSW Cyber Security Policy - Cyber Security Policy | Digital.NSW

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The Enterprise Resource Platform is at the core of many of Council’s business operations, from client facing services, financial management, staff management, workflow management and in many cases our single source of truth.

Failure to proceed with option 2 will significantly reduce the organisation’s ability to maintain the confidentiality, integrity, and availability of Council’s most valuable or operationally vital systems or information.

The Enterprise Resource Platform underpins many of Council’s Community Strategic Plan (CSP), corporate strategies, Delivery Program (DP), and Operational Plan (OP) goals. The Resource Strategy, adopted by Council in June 2022, including the Digital Strategy, relies on the continuation of a reliable and current Enterprise Resource Platform to achieve the following goals / objectives:

CSP Theme:                                        Our Civic Leadership – Local leadership is strong, consultative, and responsive to our community needs.

CSP Strategy:                                     E4. Council has robust financial management processes to ensure ongoing viability and value for money

Delivery Program:                            E4.1. Improve the provision of corporate financial services.

                                                                E4.2. Ensure Councils revenue streams are maximised.

How the ERP supports this:          Civica Authority manages our financial data and processes (including rates), continued investment and maintenance of this solution is crucial to support Councils financial operations.

                                                                Failure to proceed with Option 2 will prevent Council from responding to regulatory changes in application of rates, charges and council service delivery. This will be a realised risk following the end of life.

 

CSP Theme:                                        Our Civic Leadership – Local leadership is strong, consultative, and responsive to our community needs.

CSP Strategy:                                     E5. Council resources are managed in order to meet agreed service delivery standards and deliver value for money

Delivery Program:                            E5.1. Maintain and Support Councils workforce and implement the Workforce Strategy.

                                                                E5.3 Maintain and improve corporate information, communication and technology services and systems in alignment with the Digital Strategy.

                                                                E5.4 – Ensure good governance and effective practices in relation to procuring goods and services in support of the Procurement Improvement Plan 2021-25.                

Operations Plan:                               E5.3.1 Establish ERP upgrade / replacement project

How the ERP supports this:          Civica Authority is our source of truth for staff data, the outcomes identified in the Workforce Strategy rely on Civica Authority providing quality data, mobile capabilities, and holistic payroll. These outcomes will not be achieved within the timeframes defined (2022 – 2025) if Council do not commit to Option 2.

                                                                Investment in Civica Authority Altitude provides an opportunity to progress the Digital Strategy foundations whilst also funding BAU operations.

                                                                Civica Authority is the source of truth for budgets and service delivery and contract management expenditure. Further investment in Authority will allow the implementation of the Contract Management module within Authority, further enriching our financial data and ability to manage our services.

Environment and Climate Change

An upgrade to Altitude (Option 2) will allow Council to utilise the expanded service offering and features of the digital platform. This includes increased mobile workplace and service delivery capabilities, reducing the need for paper-based forms, assessments, and unnecessary travel to the Council office (for customers) or between offices and field-based sites (for staff access to computer systems). This is expected to reduce not only Council’s use of paper and fuel but also extend to our customers.

Economic

Option 2 presents the best economic decision for Council as it allows Council to mitigate the end-of-life solution risks quickly, move to a cloud offering, provide the foundations for digital transformation, and limit the business change impacts of a new system.

By also reviewing the existing business processes and working to cleanse data as part of the upgrade, Council can be confident the resulting business processes are as efficient and lean as possible and the resulting data is of quality.

Adoption of Option 3, whilst this does remediate any perceived reputational risks associated with not testing the market, also introduces increased costs in the form of a market approach and potential system implementation and delays to the replacement of our end-of-life solution.

Risk

Council is presented with a number of emerging risks related to our Enterprise Resource Platform nearing end of life. The emerging risks are expected to be realised from the first business day following the end of life, and threats will remain active until a replacement solution is implemented.

The emerging risk. Council is unable to maintain the confidentiality, availability and integrity of their Enterprise Resource Platform including the data contained within and the processes implemented by, due to its end-of-life status.

The threats and impacts associated with this risk are discussed below.

Cyber Security – The Enterprise Resource Platform is open to vulnerabilities which cause unlawful access to our systems and data and / or data breach or loss

Impact. According to Cyber Security NSW Policy our Enterprise Resource Platform is our Crown Jewels. It contains critical data required to deliver Council services and represents a strategic asset. Without application support and patching of the Enterprise Resource Platform, Council is at heightened risk of data loss, corruption, or unlawful access, within limited ability to implement controls and protections against such threats. Data breach, corruption or loss may result in reduce Council operations, incorrect decisions, reduced confidence, and the potential for Council to consider payment of a ransom fee.

Reputation – A decision to delay the replacement of our end-of-life solution and expose council to perceived unnecessary operational risks such as data loss, efficiency loss, and non-compliance, for no significant benefit could be perceived as a poor management decision. Inversely, the decision to continue with the same vendor without a test of the market could be perceived as poor financial management and non-compliance with our procurement obligations.

Impact. Should either eventuate the reputation and community confidence in Council’s operations will be reduced.

Compliance – The Enterprise Resource Platform does not allow Council to implement, administer, and maintain legislative compliance of Council services.

Impact. Legislative changes made post the end-of-life date will not be applied to the end-of-life solution. Without continued development and enhancement of the Enterprise Resource Platform, Council is at risk of not being able to administer key legislative instruments currently applied via the Enterprise Resource Platform and its workflows. Non-compliance may result in incorrect decision making or application of legislative instruments leading to charges or findings of negligence or reputational damage. Alternatively, a solution may be provided outside the Enterprise Resource Platform, introducing additional unbudgeted charges and data inconsistences that will need to be rectified once a replacement solution is available.

Business Operations – Failure or degradation of the Enterprise Resource Platform prevents business operations or reduces Council efficiency.

Impact. Once the Enterprise Resource Platform enters end of life the system performance capabilities and functionality cannot be improved or refined. This will likely extend to the resolution of bugs and defects. The inability of Council to seek enhancement or resolution of defects within the current service offering may introduce delays or blockers to business operations requiring additional investment to resolve or lengthy workarounds. The failure or degradation of the Enterprise Resource Platform may reduce Council’s ability to meet existing service targets and lead to reduced community satisfaction and reduced operational efficiencies, meaning business workflows carry a higher cost.

Social / Cultural

The adoption of option 2 will provide the least social and cultural impacts and disruptions to staff. By remaining on the same platform, the impact of the project is far less than considering a move to a completely different platform.

It is also expected there will be social and cultural benefits for the community with Altitude providing the foundations for increased self-service and online customer service delivery. An example could be increased visibility of your own data collected by and used by Council; allowing the community to be engaged with processes which impact them.

Attachments

1.            Confidential attachment - Authority v7.0 End Of Life notice (Confidential - As this attachment contains matters affecting the security of the Council, Councillors, Council staff or Council property as per Section 10A(2)(f) of the Local Government Act 1993.

 

Although the above relates more explicitly to the discussion of closed business, it also forms part of the basis of justification as to why information relied upon in informing the public decisions made by Council are kept confidential. To consider this confidential material in open Council would be, on balance, contrary to the public interest (as defined in Section 14 of Government Information Public Access (GIPA) Act 2009). This meets the requirements of Sect 10 D of the Local Government Act 1993 if Council were to close the meeting to discuss the details.

 

 


Council 19 April 2023

Item 10.4

 

10.4. Extension of tenure - Discovery Holiday Parks Pambula Beach       

Discovery Holiday Parks Pty Ltd currently occupy a section of R89211 at Pambula Beach for caravan park purposes. Council approval is being sought to renew their tenure for a further period of 12 months.

Director Business and Governance  

Officer’s Recommendation

1.      That upon expiry of the existing Discovery Holiday Parks Pty Ltd lease, Council as Crown Land Manager of the Pambula Beach Reserve (R89211), approve a further short-term arrangement for 12 months with the potential for a further 12-month extension if the carpark works have not progressed.

2.      That authority be delegated to the Chief Executive Officer (CEO) to execute the short-term extension of tenure.

 

Executive Summary

Council is Crown Land Manager of the Pambula Beach Reserve (R89211) for public recreation and access purposes. Council officers have received a request from the lessee currently occupying a section of R89211 being Lot 533 DP 1014766 for renewal of their tenure which is due to expire on 31 August 2023. Council approval is being sought to enter into a licence agreement with Discovery Holiday Park Pty Ltd for a period of 12 months with the potential for a further 12-months for their continued occupation of R89211.

Background

Council resolved at its Ordinary Meeting of 16 October 2013, when considering Discovery Holiday Parks occupation of Lot 533 DP 1014766 within Pambula Beach Reserve (R89211) as follows:

1.    That Council approve in principle a further 10-year lease to Discovery Holiday Parks Pty Ltd for the continued occupation of Lot 533 DP 1014766 located within Crown Reserve 89211 at Pambula Beach, at a commencing rental of $7,130 per annum (exclusive of GST)

2.    That the Mayor and Acting General Manager be authorized to execute the necessary documents

3.    That in accordance with the requirements of the Crown Lands Act, Council obtain Minister’s consent to the lease agreement.

Following the resolution of Council, a lease was entered into with Discovery Holiday Parks Pty Ltd for overflow caravan park purposes which is due to expire on 31 August 2023.

Council officers were advised in May 2022 that preliminary concept design work had been prepared to extend carparking into the existing lease section and therefore it was recommended the lease not be renewed upon expiry in August 2023 to enable works to proceed. This was communicated to the lessee in June 2022 but as works have not yet commenced and the lease expiry is approaching, Council has been contacted by the lessee to confirm whether there is an option for renewal.

 

Council officers have liaised with internal staff and have been requested to seek Council approval to renew the lease for a short-term period of 12 months with the potential for an extension for a further 12 months pending how the project progresses and whether funding becomes available.

 

It is also noted that a submission was received from a member of the public requesting the section of leased land to be returned for public access. Council’s response to the individual suggested it was Council’s intention not to renew the lease upon expiry in August 2023 due to the proposed works. If councillors approve the renewal of the licence for a further 12 months, Council officers recommend that additional correspondence be forwarded to the individual to advise of the resolution. A copy of the correspondence received is attached for the information of councillors.

Options

The options available to Councillors are:

1.         Approve the extension of tenure for Discovery Holiday Parks Pty Ltd occupation of Lot 533 DP 1014766 for a period of 12 months with the potential for a further 12-month extension if the project has not progressed

2.         Advise the lessee their tenure will not be renewed upon expiry.

Community and Stakeholder Engagement

Engagement undertaken

Correspondence was forwarded to both Discovery Holiday Parks Pty Ltd and the individual who made a submission to advise the lease would not be renewed upon expiry.

Discovery Holiday Parks Pty Ltd have indicated they would like to renew their tenure if the option is available.

Engagement planned

Council officers will liaise with both the lessee and the individual who made the submission to action any resolution of Council.

Financial and Resource Considerations

A market rental valuation was obtained in 2013 which indicated a rental figure of $7,130 per annum. The annual lease fee payable by Discovery Holiday Parks Pty Ltd has been increased each year by CPI and is currently $9,990.43.

Council officers propose to issue the new licence with a commencing licence fee of $9,990.43 to be reviewed by CPI if a further renewal is offered.

Legal /Policy

To ensure the continued use and occupation of the reserve is appropriate for the licence, the following will need to be considered:

·    compliance with the legislation, related policies and guidelines

·    compatibility with the reserve purpose of public recreation and access

·    Native Title rights and

·    Aboriginal land claims.

In line with Independent Commission Against Corruption (ICAC) Guidelines, to maintain transparency and avoid any suggestion of impropriety, Council officers have considered whether direct negotiation with the current occupant is appropriate in this instance. It is recommended that an expression of interest process not be conducted for the following reasons:

·    the proposed licence is for a period of 12 months and there is no intention to renew for long term tenure due to the proposed carpark extension works

·    Discovery Holiday Parks Pty Ltd have occupied this section of reserve for the last 10 years under a lease and will keep the reserve in good repair moving forward

·    to comply with the reserve purpose, any occupation needs to be for public recreational or access purposes

·    Council property officers are required to complete pecuniary interest returns annually and no conflict of interest has been disclosed

·    the reserve is under a Native Title and Aboriginal Land Claim and only existing, low impact uses will receive authorisation until the claims have been assessed.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Delivery Program: 6.12.12- Develop and manage Council’s owned and managed land portfolio.

Environment and Climate Change

There are no environment and climate change matters associated with the proposed occupation of land within R89211.

Economic

The current agreement with Discovery Holiday Parks Pty Ltd provides an economic benefit to Council and the community as the fee goes towards maintenance and upkeep of the Pambula Beach Reserve (R89211).

Risk

There are no adverse risks in allowing the reserve to be occupied by Discovery Holiday Parks Pty Ltd if their use is authorised by way of a formal licence agreement which contains appropriate indemnity and insurance clauses.

The proposed issue of a licence agreement to Discovery Holiday Parks Pty Ltd will affect native title, however, the act impacting R89211 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

Discovery Holiday Parks Pty Ltd have successfully operated from the site for many years and support the core objectives for the land.

Attachments

1.            Submission regarding lease extension (Confidential - As this attachment contains personnel matters concerning particular individuals as per Section 10A(2)(a) of the Local Government Act 1993.

 

Although the above relates more explicitly to the discussion of closed business, it also forms part of the basis of justification as to why information relied upon in informing the public decisions made by Council are kept confidential. To consider this confidential material in open Council would be, on balance, contrary to the public interest (as defined in Section 14 of Government Information Public Access (GIPA) Act 2009). This meets the requirements of Sect 10 D of the Local Government Act 1993 if Council were to close the meeting to discuss the details.

 

 


Council 19 April 2023

Item 10.5

 

10.5. Road Closure - Section of unconstructed road off Oliver Street, Bemboka     

Council approval is being sought to commence the road closure assessment process under Division 3 of the Roads Act 1993 (NSW) to enable the permanent closure of an unconstructed section of road corridor off Oliver Street, Bemboka adjoining Lot 16 Section 13 DP 758087.

Director Business and Governance  

Officer’s Recommendation

1.    That Council approves, in principle, the closure of the unconstructed Council public road corridor adjoining Lot 16 Section 13 DP 758087 in Bemboka.

2.    That Council commences assessment of the road closure application under Division 3 of the Roads Act 1993 (NSW) and that the proposal be publicly advertised for a period of 28 days.

3.    That if any objections are received, a further report be prepared for Council’s consideration.

4.    That if no objections are received, Council, by notice published in the Government Gazette, formally close the public road reserve concerned.

5.    That the Chief Executive Officer and Mayor be authorised to execute the necessary documentation to affect the road closure.

6.    That all costs associated with the road closure process be borne by the applicant.

 

Executive Summary

Council approval is being sought to commence the road closure assessment process under Division 3 of the Roads Act 1993 (NSW) (Roads Act) to close a section of road reserve at the rear of the applicant’s property being Lot 16 Section 13 DP 758087.

Background

Council has received a formal request to commence the road closure assessment process under Part 4 Division 3 of the Roads Act to close a section of road reserve which adjoins Lot 16 Section 13 DP 758087.

Council officers have considered the permanent closing of the section of road reserve and sale to the adjoining landowner and are supportive of the proposed closure so long as the road is consolidated with the landowners adjoining land parcel.

A road status search was undertaken which prompted further enquiries to Crown Lands who confirmed the road corridor is Council public road. To finalise this process Council now intends to exercise its power pursuant to Part 4 Division 3 of the Roads Act to close the Council public road.

A diagram of the section of road reserve which is the subject of the permanent road closure application is shown below for the information of councillors.

Figure 1 – Diagram of the section of road reserve which is the subject of the permanent road closure application shown in red.

Council has power to close the section of Council public road, pursuant to Part 4 Division 3 of the Roads Act and when a constructed Council public road is closed, it remains vested in Council and Council may facilitate the subsequent sale of the land and receive the proceeds of sale. In this case it is Council officers’ intention to provide the Department with a written declaration of road construction within the road corridor, to facilitate the subsequent sale of the portions of closed road to the applicant. The definition of road construction is broad and may include regular mowing as an example.

Options

The options available to Council are:

1.    Approve the proposal received from the applicant for the closure of a section of Council road reserve which adjoins Lot 16 Section 13 DP 758087 off Oliver Street, Bemboka or,

2.    Advise the applicant that the proposed road closure is not supported by Council.

Community and Stakeholder Engagement

Engagement undertaken

Council officers obtained a road status search from a private investigator that prompted further enquiries to Crown Lands who confirmed the subject road reserve is under Bega Valley Shire Council’s control and management as per Government Gazette notice dated 25 November 1904. A copy of the road status search and correspondence from Crown Lands is attached for the information of councillors.

Engagement planned

Under section 38B of the Roads Act, notification of the proposal to close a Council public road must be published on Council’s website and be given to all owners of land adjoining the road, and all notifiable authorities as prescribed by the Roads Regulation 2018 (NSW).

The notice must identify the road that is proposed to be closed and must state that any person is entitled to make submissions to the Council with respect to the closing of the road and must indicate the way and period (being at least 28 days) that a submission should be made.

Financial and Resource Considerations

The applicant is responsible for all costs associated with the road closure application, subsequent transfer, their own legal costs, and Council’s legal costs capped at $3,500.

In addition to these costs, the applicant has paid Council’s road closure application fee of $2,750 to contribute to staff costs associated with processing the application and will pay Council compensation for the section of road reserve upon receipt of a valuation from a register valuer.

Legal /Policy

From 1 July 2018, all NSW Councils were given power to close a Council public road, pursuant to Part 4 Division 3 of the Roads Act, however the vesting of Council roads on closure remained unchanged by the amendments to the Roads Act.  When a constructed Council public road is closed, it remains vested in Council and Council may facilitate the subsequent sale of the land and receive the proceeds of sale.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The proposed road closure aligns with Council’s road closure and private sale procedure and meets statutory obligations under the Roads Act.

Additionally, as outlined in Council’s Delivery Program 2022-25 and Operational Plan 2022-23 the road closure assessment process is core activity of the property services team.

Environment and Climate Change

There are no environment and climate change impacts associated with the proposed road closure process.

Economic

There are no additional economic impacts associated with the proposed road closure application that have not already been addressed in this report.

Risk

In accordance with Council’s road closure and private sale procedure, any road closure requires a formal process that ensures probity, due diligence, analysis of risk and other key issues.

Social / Cultural

There are no social or cultural matters associated with the proposed road closure.

Attachments

1.         Road Status Search for Lot 16 Section 13 DP 758087

2.         Correspondence with Crown Lands confirming road status

 


Council

19 April 2023

Item 10.5 - Attachment 1

Road Status Search for Lot 16 Section 13 DP 758087

 

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Council

19 April 2023

Item 10.5 - Attachment 2

Correspondence with Crown Lands confirming road status

 

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Council 19 April 2023

Item 10.6

 

10.6. Road transfer Voluntary Planning Agreements     

This report seeks a resolution from council to revoke part of resolution 144/22 following investigation into the appropriate legal mechanism to formalise crown road transfer matters where there is a need for the road to be constructed and maintained by the developer or landowner.

Director Business and Governance    

Officer’s Recommendation

1.    That council receive and note the report.

2.    That point 5 of resolution 144/22 be revoked and replaced to read ‘That the Chief Executive Officer (CEO) be delegated authority to negotiate, finalise and execute a Voluntary Planning Agreement in relation to the road transfer application for the sections of Stanley and Curalo Streets, Eden described in Development Application 2003.95’.

3.    That point 6 of resolution 144/22 be revoked and replaced to read ‘That council delegate authority to the Chief Executive Officer (CEO) to negotiate, finalise and execute Voluntary Planning Agreements for any future crown road transfer matters where there is a need for the road to be constructed and maintained by the developer or landowner.

4.    That council progresses the public advertisement for Voluntary Planning Agreements between Bega Valley Shire Council and developers/landowners for a period of 28 days in accordance with the Environmental Planning & Assessment Act 1979 (NSW).

 

Executive Summary

This report follows a resolution of Council from its Ordinary Meeting of 17 August 2022, outlines the outcome of investigations following the resolution, and proposes a way forward regarding Crown road transfer matters where there is a need for the road to be constructed and maintained by the developer or landowner.

Background

Council resolved at its Ordinary Meeting of 17 August 2022, when considering road transfer applications that involve road construction and maintenance requirements as follows:

1.    That point 2 of resolution 104/21 be revoked.

2.    That Council progresses the road transfer application for the sections of Stanley and Curalo Streets, Eden described in Development Application 2003.95.

3.    That Council enters into a Deed of Agreement with the applicant outlining road construction and maintenance obligations prior to progressing the road transfer application.

4.    That all costs associated with this matter be borne by the applicant.

5.    That the Mayor and Chief Executive Officer be delegated authority to negotiate, finalise and execute the Deed of Agreement and the official seal of Council be affixed to the document.

6.    That Council delegate authority to the Mayor and Chief Executive Officer to negotiate a Deed of Agreement for any future Crown Road transfer matter where there is a need for the road to be upgraded to Council’s construction standard and Council hereby authorise its official seal to be affixed to the documents under the signature of the Chief Executive Officer and Mayor.

A copy of the report of 17 August 2022 is attached for the information of councillors.

Following the resolution, Council officers investigated the appropriate legal mechanism to implement the above course of action taking into consideration future risk and liability to council in relation to these agreements.

Through development consents, developers are required to upgrade portions of road and the mandated upgrade standard is either:

•     To council’s development specification ‘Council Standard’. In these cases, it is assumed that council will take on maintenance responsibility; or

•     To some lesser standard. In these cases, a judgement call is made by the Development Engineer and there is usually a separate condition in the consent noting that the owner/developer is responsible for maintenance of the road in perpetuity.

The reason that a lesser standard is often applied, is that it is seen as unreasonable and cost-prohibitive to ask a developer/landowner of a single dwelling to construct a public road to the council development specification ‘Council Standard’.

Following legal advice, it has been determined the most appropriate mechanism to formalise an agreement for a developer/landowner to upgrade a Crown road prior to council accepting transfer of the road is a Voluntary Planning Agreement (VPA) as it is simpler, bound to the land and gives Council more opportunity for recompense. As such a template VPA has been prepared by Council’s legal representative and is proposed for use for all future Crown road transfer matters where there is construction and maintenance requirements.

A VPA is a written agreement between council as planning authority and a developer/landowner who agrees to make contributions to council as part of a development application. Although it is described as an agreement, a VPA usually takes the form of a deed, because the developer is making contributions but is not usually receiving any consideration in return.

Options

The options available to council are:

1.    Resolve as recommended and delegate authority to the Chief Executive Officer (CEO) to negotiate, finalise and execute VPA’s for crown road transfer matters where there is a need for the road to be constructed and maintained by the developer or landowner.

2.    Not support road transfer applications noting this option will have an adverse impact on development in the shire.

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

Community and Stakeholder Engagement

Engagement undertaken

There are several impacted developers/landowners waiting for council to progress road transfer applications and enter into suitable agreements to formalise their commitment to construct/maintain the road as prescribed in their development consent. Council officers have been informing these customers as advice has been obtained and those applicants are aware a resolution of council is required for the CEO to be able to execute such VPA’s.

Engagement planned

Council officers will continue to consult with developers/landowners regarding existing and future crown road transfer matters where there is a need for a VPA.

Financial and Resource Considerations

There are no fees payable by Council to lodge a road transfer application to Crown Lands. Once Ministerial consent is given to transfer the road, Crown Lands at its own cost, administer the transfer and publish a notice of the parts transferred in the NSW Government Gazette. Once the parts of the road transfer have been gazetted, those parts will become a Council road/ asset.

Council has incurred costs to obtain legal advice and have the template VPA prepared for current and future matters, however a fee has been added to Council’s fees and charges schedule which will allow council to charge developers/landowners and recover initial legal costs outlaid as well as staff time allocated towards these matters.

Legal /Policy

A crown road transfer to Council takes place under section 152I of the Roads Act 1993 (NSW).

Crown Lands have established criteria for determining whether a crown road is suitable for transfer to Council. Crown roads are considered suitable for transfer to Council if they meet one or more of the following criteria:

Criteria

Explanation

A roads authority requests transfer of a crown road, including for the purpose of Section 44 of the Roads Act 1993 (Roads Act).

To initiate the road transfer process, the request by Council must be in writing and be accompanied by diagram showing the extent of the road subject to the transfer.

The crown road provides formed road access to urban/rural areas or provides formed road access within country towns, villages, local communities, and public areas.

These roads generally service public traffic. Council may have traditionally maintained or repaired the road and/or named the road for addressing purposes. Transfer of the road allows for administrative arrangements to formally rest with the appropriate road authority for management as part of their road network.

Road works on a crown road are proposed by someone, other than NSW Department of Industry, who requires development consent under the Environmental Planning & Assessment Act 1979 (EP&A Act).

Transfer allows Council to regulate the standard to which road access should be established and issue a construction certificate as the relevant road authority under the Roads Act.

Development consent has been granted by Council that requires a crown road to service a development that increases traffic on the road.

A key issue influencing the use of affected Crown roads is incremental traffic-increasing developments and council’s role in development consent, planning and public road management. The responsibility for managing these roads rests with council as the relevant road authority.

A crown road requires maintenance to a specified standard as per a condition of development consent.

Transfer places the onus on Council, as the consent authority, to manage the road in accordance with the requirements of the development approval. If standards were not specified by Council as a condition of consent, transfer may still apply on the basis that the crown road already conformed to Council’s access standards to service the development.

A crown road was constructed or is being maintained by Council to facilitate access as part of its local road network, including drainage structures such as bridges or culverts.

Transfer places council in a position to formally manage the road in accordance with pre-existing access and traffic conditions. This includes road standards requirements and administration of compliance against these requirements.

Construction or upgrade of a crown road is required to meet council standards.

Transfer delivers outcomes that are consistent with council’s role in managing public roads for residential and rural needs.

 

A Council objects to the closure of a crown road on the grounds that the road is required for public access.

Transfer preserves the road for current and future access needs.

 

Crown lands will not support Council’s objections to a crown road transfer where the reason for the objection is that the road is not generally used by the public.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Bega Valley Development Control Plan (the “DCP”) 2013 states: Council will not accept the transfer of existing Crown Public Roads from the state unless the road is constructed to Council’s current standards.

A VPA is consistent with the following guiding principles for councils in section 8A of the Local Government Act 1993 (which have replaced the Council Charter):

·    In exercising functions generally:

Councils should carry out functions in a way that provides the best possible value for residents and ratepayers

Councils should plan strategically, using the integrated planning and reporting framework, for the provision of effective and efficient services and regulation to meet the diverse needs of the local community

Councils should manage lands and other assets so that current and future local community needs can be met in an affordable way.

·    In decision making:

Councils should recognise diverse local community needs and interests

Councils should consider the long term and cumulative effects of actions on future generations

Councils should consider the principles of ecologically sustainable development.

A VPA is consistent with these principles in that it requires a monetary contribution by the developer/landowner to mitigate the impacts of private development on the broader community.

Bega Valley Community Strategic Plan 2040:

C.2. Ensure land use planning and resource use supports sustainable growth whilst protecting the quality of the natural environment and our rural landscapes.

D.1 Plan for community infrastructure and services that will meet current and future needs.

Delivery Program 2022-25 Action: D1.1 - Plan for asset capital works.

Environment and Climate Change

There are no environmental or climate change concerns associated with entering into a VPA.

 

Economic

The VPA provides a monetary contribution that offsets any potential future costs that would otherwise need to be drawn from council funds.

Risk

There is significant financial and reputational risk to Council in relation to road transfer matters, however these risks are mitigated by Council entering into VPA’s as they can be enforced in the Land and Environment Court by way of council seeking an order for compliance under section 9.45 of the EPA Act.

Social / Cultural

A VPA provides a mechanism for council to support developers/landowners in situations where a crown road transfer is necessary.

Attachments

1.         Council report dated 17 August 2022 - Road transfer request - DA 2003.95 Stanley Street, Eden

 


Council

19 April 2023

Item 10.6 - Attachment 1

Council report dated 17 August 2022 - Road transfer request - DA 2003.95 Stanley Street, Eden

 

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Council 19 April 2023

Item 10.7

 

10.7. Robyn's Nest Deed of Management and Licence     

Council has received a request to assign the Deed of Management between Council and Sea Eagle Estate Pty Limited relating to the jetty and boat ramp pending a sale of the adjoining land.

Director Business and Governance  

Officer’s Recommendation

1.    That Council approve an application to Crown Lands for a revocation of the existing Crown licence 363658 and transfer to the owner of Lot: 601 DP: 1277714.

2.    That Council request Crown Lands consent to expand the direct Crown licence extent to include the section of Top Lake – Merimbula Reserve (R1003688) which is managed by Bega Valley Shire Council as Crown Land Manager as the asset is built over parcel Lot 7033 DP 1047319 and the Crown waterway.

3.    That should Crown Lands refuse Council’s application for revocation and transfer of the Crown licence 363658 to the owner of Lot: 601 DP: 1277714, Council approves the assignment of the existing Deed of Management to the new owner of Lot: 601 DP: 1277714until the Crown licence 363658 expires on 26 May 2025 pending further legal advice.

4.    That should Crown Lands refuse the application for revocation and transfer of the Crown licence 363658 to the owner of Lot: 601 DP: 1277714, Council seeks legal advice in relation to the retirement of the Deed of Management following expiry of the licence on 26 May 2025 which would include the need for the owner of Lot: 601 DP: 1277714to remove the jetty structure and associated infrastructure from the land.

5.    That all costs associated with this matter be borne by the landowner.

6.    That Council authorise the Chief Executive Officer to execute all necessary documentation to effect the above course of action.

 

Executive Summary

Council has received a request to assign the Deed of Management between Council and Sea Eagle Estate Pty Limited following a sale of the adjoining land. Council approval is being sought to revoke the existing licence with Crown Lands and transfer to the owner of Lot: 601 DP: 1277714.

Background

On the 23 January 2001 Council considered a report regarding a Development Application (DA 1999.2043) for the construction of a jetty 1.5 metres wide on a Crown Road Reserve at Top Lake Merimbula adjacent to land owned by Sea Eagle Estate Pty Ltd. The jetty was intended to be available for use by the public, but also for use by the patrons of Robyn’s Nest.

DA 1999.2043 was approved subject to several conditions as outlined in the attached notice of determination dated 23 January 2001.

On 16 May 2003 a notice published in the NSW Government Gazette dedicated the land that was previously road as public reserve to be managed by Bega Valley Shire Council for the purposes of public recreation and environmental protection. Due to the implications of the Native Title Act 1993 (NT Act) the land below mean high watermark was unable to be transferred to Council management at the same time. As a result, consent to the construction of the jetty was provided by the former Department of Lands on the condition that Council enter into a licence with the Department for this section of Crown Land for its development as a picnic area with public jetty.

A further report was presented to Council’s Ordinary Meeting dated 22 March 2005, which considered the proposed licence received from the Department and draft Deed of Management and resolved as follows:

1.    That Council agree to enter into a Deed of licence, Deed of Management and Agreement to enter into a Deed of Management for a section of Crown Road Reserve at Top Lake Merimbula subject to the conditions contained in the documents tabled at the Council meeting of 22 March 2005.

2.    That authority be given to the Mayor and General Manager to execute the necessary documents.

Following the resolution, Council entered into a direct Crown licence 363658 for the section of waterway which contained majority of the jetty structure. It is noted there is an error in the licence area description provided by the Department, however the diagram attached to the licence provides clear indication of the licenced area.

Concurrently, Council entered into a Deed of Management with Sea Eagle Estate Pty Limited which transferred the obligations under the direct Crown licence 363658 to the proprietors of Sea Eagle Estate Pty Limited. The Deed also outlined the construction and maintenance responsibilities for the jetty and granted access over the Council managed Crown Reserve R1003688.

The current direct Crown licence expires on 26 May 2025 and clause 4 of the Deed of Management requires Council to apply for a renewal upon expiry. A copy of the licence and Deed of Management are attached for the information of Councillors.

Since the Deed has been in effect, Council officers have passed on the annual licence fee to the proprietors of the Sea Eagle Estate Pty Limited for payment each year as Council continues to hold the head licence for the section of waterway which contains the jetty structure. It is noted no additional licence fee has been charged for access over the Council Managed Crown Reserve R1003688 or for Council officer time each year facilitating the administration associated with the Crown licence.

Council has received advice of the sale of land from Sea Eagle Estate Pty Limited to a new owner from Bartier Perry Lawyers who are representing the purchasers and a request for Council’s consideration to the assignment of the current landowner’s rights and obligations under the Deed of Management which has prompted Council officers to investigate the option of terminating the head licence for the jetty with Crown Lands.

When the licence was established, it was validated as a future act under Subdivision K of the NT Act. Subdivision K validates future acts that permit or requires the construction, operation, use, maintenance, or repair of facilities for services to the public and acts under subdivision K can be undertaken by non-government bodies if the facility is for the general public.

A condition of the development consent requires the jetty, pontoon and recreation area be operated as a public facility and be always made available for unrestricted public access. Therefore, Council officers are of the view that Crown Lands should be able to issue the direct Crown licence to the landowner under subdivision K of the NT Act.

Given the jetty was constructed using private funds and it is not a Council asset, Council officers see no need for Council to be a third party to the licence and are of the opinion that the landowner should negotiate a licence for this purpose with Crown Lands directly.

The jetty has been partially constructed within the adjoining Council Managed Crown Reserve R1003688, therefore Council officers intend to seek consent from Crown Lands to expand the licence area to include the section of R1003688 within the direct Crown licence 363658 for both the jetty and access purposes. Councillors should note that as the reserve was only created in 2003 there are possible Native Title compensation implications because of the jetty construction and issue of tenure.

Figure 1 – diagram showing proposed licence area shown in red for the information of Councillors.

Further correspondence from Bartier Perry Lawyers suggested that if Council proceed to terminate the licence, the landowner will be bound to remove the public facilities and reinstate the area to its original condition. Nothing in the licence with Crown Lands requires removal of improvements upon expiry, however clause 5 of the Deed of Management requires the landowner reinstate the area to its original condition upon expiry of the licence.

Council officer recommendation is to seek further legal advice regarding the retirement of the Deed of Management and the potential implications to Council.

Options

The options available to Council are:

        1.    That Council approve an application to Crown Lands for a revocation of the existing direct Crown licence 363658 and transfer to the owner of Lot: 601 DP: 1277714.

        2.    That Council maintain the status quo and approve the assignment of the existing Deed of Management to the new owner of Lot: 601 DP: 1277714and extension of the direct Crown licence following its expiry on 26 May 2025.

        3.    That Council defer the report until further legal advice is obtained regarding the retirement of the Deed of Management.

Community and Stakeholder Engagement

Engagement undertaken

Council officers have requested Crown Lands confirmation of the process for termination or revocation of the existing licence but have not received a response to date. It is understood the options available are:

1.    Council complete a revocation of existing tenure and issue of a new licence form

2.    Council complete a licence termination statutory declaration form

It is noted that there is no guarantee a new licence will be issued to the adjoining landholder. The application will be considered on its merits, considering:

·    Compliance with the Crown Land Management Act 2016 (CLM Act), related policies, guidelines and other related legislation

·    Land capability

·    Current and future use of the land

·    Native Title

·    Aboriginal land claims

·    Development consent (and other consents under the Environmental Planning & Assessment Act 1979)

·    Direct negotiation and public competition

·    The public interest

·    The outcome of engagement (if required) under the Community Engagement Strategy.

Engagement planned

Council officers will continue to liaise with all parties following the resolution of Council to progress this matter.

If Council resolve to maintain the status quo and assign the Deed of Management to the new owner of Lot: 601 DP: 1277714and apply to Crown lands for an extension of the direct Crown licence following its expiry on 26 May 2025 there will be a need to consult with the NSW Aboriginal Land Council and Bega Local Aboriginal Land Council as the land is under claim. Council officers will also be required to undertake a Native Title due diligence assessment.

Financial and Resource Considerations

If Council resolve to make an application to Crown Lands for revocation of existing direct Crown licence and issue of a new licence to the owner of Lot: 601 DP: 1277714a fee of $576 will apply. Council officers are proposing that all fees associated with this matter be borne by the landowner.

If Council wish to seek legal advice in relation to the retirement of the Deed of Management following expiry of the licence Council will be required to pay these costs from the Property and Legal budget.

Legal /Policy

As the proposed tenure impacts Crown Land, it will be necessary to consider any Native Title interests under the NT Act and the status of Aboriginal Land Claims under the Aboriginal Land Rights Act 1983.

As outlined in the report, Council officers view is that Crown Lands should be able to issue the licence directly to the landowner under subdivision K of the NT Act.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Delivery Program: 6.12.12- Develop and manage Council’s owned and managed land portfolio.

Environment and Climate Change

There are no environment and climate change matters associated with the proposed revocation and transfer of licence.

Economic

As mentioned previously in this report there is no economic benefit to Council or the community for involvement in this matter as no additional licence fee has been charged for access over the Council Managed Crown Reserve R1003688 or for Council officer time each year facilitating the administration associated with the Crown licence.

Risk

There is a risk that the landowner will not uphold the responsibilities and obligations under the Deed of Management and this responsibility will fall to Council as the licensee. The proposed revocation and transfer of licence will remove Council from being a party to the transaction and therefore remove any risk of liability for maintenance should the lessee fail to do so.

If Council resolve to maintain the status quo and assign the Deed of Management to the owner of Lot: 601 DP: 1277714 and apply to Crown lands for an extension of the direct Crown licence following its expiry on 26 May 2025 there is a financial risk to Council in relation to Native Title compensation as the reserve was only created in 2003. If the construction of the jetty is determined to have extinguished Native Title, there may be compensation liabilities payable. This outcome will not be known until determination of the Native Title claim by the Federal Court. As Crown Lands have been responsible for addressing Native Title legislation requirements for this matter to date it is Council officers’ recommendation that Council remove itself from this third-party arrangement.

There may be further reputational and financial risks if Council does not manage the retirement of the Deed of Management appropriately and Council officers are recommending legal advice in this regard to mitigate any associated risks.

Social / Cultural

Although the jetty is available for use by the public it is noted that access to the site is only through private land or via the waterway. It is envisaged that this asset mostly benefits the adjoining landowner and there will not be a big social impact on the community if this asset was to be removed.

Attachments

1.         DA1999.2043 notice of determination

2.            Deed of Management between BVSC and Sea Eagle Estate Pty Limited and copy of Crown licence agreement (Confidential - As this attachment contains personnel matters concerning particular individuals as per Section 10A(2)(a) of the Local Government Act 1993.

 

Although the above relates more explicitly to the discussion of closed business, it also forms part of the basis of justification as to why information relied upon in informing the public decisions made by Council are kept confidential. To consider this confidential material in open Council would be, on balance, contrary to the public interest (as defined in Section 14 of Government Information Public Access (GIPA) Act 2009). This meets the requirements of Sect 10 D of the Local Government Act 1993 if Council were to close the meeting to discuss the details.

 

 

 


Council

19 April 2023

Item 10.7 - Attachment 1

DA1999.2043 notice of determination

 

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Council 19 April 2023

Item 10.8

 

10.8. Audit, Risk and Improvement Committee Quarterly Report March 2023     

The purpose of this report is to provide an update on the activities of the Audit, Risk and Improvement Committee (ARIC) and to present the quarterly report for March 2023 to Council.

Director Business and Governance  

Officer’s Recommendation

1.    That Council receive and note the Audit, Risk and Improvement Committee (ARIC) March 2023 quarterly report.

2.    That Council call for Expressions of Interest (EOI) from suitably qualified and experienced members of the community to be appointed as a volunteer, independent, external member of Bega Valley Shire Council’s Audit, Risk and Improvement Committee following the resignation of one of the members.

3.    That Council delegate responsibility to the Chief Executive Officer (CEO) to endorse the appointment of a new independent external member to the Audit, Risk and Improvement Committee following a competitive Expressions of Interest process.

 

Executive Summary

The quarterly report provides an update on the activities of the Audit, Risk and Improvement Committee (ARIC) to support accountability and highlight issues or emerging risks identified by the ARIC that may influence the strategic direction of Council.

Due to the resignation of an existing ARIC member, the committee has requested Council to run an Expressions of Interest (EOI) process to fill the vacant volunteer position.

Background

Ongoing reporting by the ARIC to the governing body is a requirement of the draft Guidelines for Risk Management and Internal Audit Framework for Local Councils in NSW. Specifically, the ARIC must provide an update to the governing body of Council of its activities and opinions after every committee meeting. A copy of the March 2023 ARIC quarterly report is included as an attachment in this business paper for the information of Councillors.

Quarterly reporting to Council is essential for accountability to ensure issues or emerging risks identified by the ARIC that may influence the strategic direction of Council are considered.

An EOI process seeking applications from suitably qualified and experienced members of the community to be appointed as volunteer, independent, external members of Bega Valley Shire Council's ARIC committee will be run by Council officers and the ARIC. 

Whist the ARIC Charter states the ARIC shall consist of a minimum of two and a maximum three independent external members ARIC have identified a need as part of a succession planning endeavour to appoint a fourth member following the resignation of an existing ARIC member.

Options

There are no options provided for this receive and note report.

Community and Stakeholder Engagement

ARIC is an independent advisory committee consisting of community volunteers that help our elected officials meet their responsibilities to oversee Council. In this sense ARIC is a form of consultation with independent members who conduct their service to Council in accordance with the requirements of the Local Government Act 1993 (NSW) (LG Act).

ARIC members collectively have a broad range of skills and experience relevant to its functions. Membership of ARIC is by appointment to the position which is determined by an expression of interest process that is advertised externally as detailed in the ARIC Charter.

Engagement undertaken

ARIC meets at least four times a year, with one of these meetings to include review and endorsement of the annual audited financial reports and external audit opinion as well as review and endorsement of the annual Internal Audit Plan.

Engagement planned

The existing meeting arrangements will continue with the next ARIC meeting scheduled to be held on 6 June 2023.

A panel incorporating the Mayor, ARIC Chair or another delegated representative will evaluate the EOI's as per the Council's Recruitment Procedure and ARIC Charter. Submissions will be shortlisted, and suitable applicants will be invited for an interview. Unsuccessful applicants will be formally notified.

Financial and Resource Considerations

The ARIC budget is modest, and this is achievable through the volunteering efforts of the ARIC committee. Due to financial pressures of Council, ARIC has put a hold on the externally resourced operational audit plan and has been concentrating on other related matters including progression of past audit recommendations, fraud and corruption action plan, and other internal improvement opportunities.

Legal /Policy

ARIC complies with the provisions of Part 4A of the LG Act in all its dealings.

A key component of ARIC’s mandate is to review compliance measures taken by Council. Specifically, ARIC aims to determine if appropriate mechanisms are in place for managing legal and compliance risks as part of risk assessment and management arrangements. This includes ensuring systems for monitoring compliance with relevant laws, regulations and associated government policies are effective.

Ongoing reporting by the ARIC to the governing body is a requirement of the draft Guidelines for Risk Management and Internal Audit Framework for Local Councils in NSW. Specifically, the ARIC must provide an update to the governing body of Council of its activities and opinions after every committee meeting. A copy of the March 2023 ARIC quarterly report is included as an attachment in this business paper for the information of Councillors.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Bega Valley Community Strategic Plan 2040: E.6 Council decision making seeks to optimise environmental, social and economic outcomes for our community, while mitigating financial, legal, environmental, reputational and safety risk

Delivery Program 2022-25: E6.1 - Deliver enterprise risk management and audit control programs

Operational Plan Activity: E6.1.1 Develop the Audit Risk and Improvement Committee annual assurance program and report to council

Environment and Climate Change

ARIC include environmental risks within its scope of monitoring Council undertakings as defined by the LG Act and ARIC Charter.

Economic

In accordance with the Charter, ARIC aims to provide input and feedback on the financial statements and performance audit coverage proposed by the external auditor, and feedback on the external audit services provided. This includes reviewing external plans and reports in respect of planned or completed external audits, and monitoring Council’s implementation of audit recommendations. Additionally, ARIC considers significant issues arising in relevant reports and better practice guides and seeks to ensure procedures are in place to ensure that Council’s financial statements comply with Australian accounting standards.

Oversight by ARIC helps drive a culture of fiscal prudence and risk awareness within Council which in turn has broader economic impacts within the community.

Risk

The LG Act requires all councils to appropriately manage its risks by having a structured risk management framework in place to identify any known and emerging risks they face and implement controls to manage these risks.

ARIC seeks to ensure effective risk management by providing governance oversight on Council’s risk management arrangements.

Social / Cultural

ARIC aims to drive a positive and efficient organisational culture by ensuring Council management has taken steps to embed a culture which is committed to achieving efficient and effective operations with ethical and lawful behaviour. By reviewing Council’s governance framework ARIC can examine how well Council is managed, directed and held accountable for achieving its goals in the best interests of the community.

Attachments

1.         ARIC Quarterly Report March 2023

 


Council

19 April 2023

Item 10.8 - Attachment 1

ARIC Quarterly Report March 2023

 

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Council 19 April 2023

Item 10.9

 

10.9. Tathra Beach Kiosk       

The current lessee of the Tathra Beach Kiosk has gone into liquidation and Council direction is sought regarding re-leasing the property.

Director Business and Governance  

Officer’s Recommendation

1.    That Council receive and note the report.

2.    That a further public Expression of Interest process to re-lease the Tathra Beach Kiosk be progressed and the results of the EOI process be presented back to Council for consideration.

3.    That Council notethe Chief Executive Officer will execute any necessary documentation regarding the termination of the lease to Bronwyn Pividori.

 

Executive Summary

Council has been notified that the lessee of Tathra Beach Kiosk has gone into liquidation which has left the Tathra Beach Kiosk building vacant.

Council approval is being sought to commence a formal Expression of Interest process (EOI) to locate a tenant to occupy the building.

Background

Council resolved at its Ordinary Meeting of 16 September 2020, when considering the results of an open and transparent EOI process seeking suitable tenants to operate the Tathra Beach Kiosk building as follows:

1.    That Council note the Expression of Interest process for the use and occupation of the Tathra Beach Kiosk building has now closed.

2.    That Council accepts the Expression of Interest (EOI) submission from Blend Providore as detailed in the EOI submission.

3.    That subject to a Native Title assessment, Council as Crown Land Manager of Tathra Beach Reserve (R79310) approve a 3x3x3 year lease to Blend Providore for the occupation of the Tathra Beach Kiosk for an annual rental fee as determined by a formal market valuation and increased annually by CPI.

4.    That Council authorise the General Manager and Mayor to enter into negotiations in order to execute the necessary lease documentation to provide tenure to the successful applicant.

5.    That Council authorise the General Manager and Mayor to enter into negotiations with the second highest scoring applicant, should the successful applicant decide not to accept Council’s conditions, in relation to lease responsibilities.

Following the resolution of Council, officers progressed with the registration of a lease with the first successful tenderer, being Bronwyn Pividori, which was not due to expire until 30 September 2024. The lease also provided two options to renew for a further period of three years.

By way of background the Tathra Beach Kiosk was allocated funding under the Local Roads and Community Infrastructure Program in 2020 for upgrade works which achieved practical completion on 6 August 2021, with the tenant being granted access from this date to action their internal fit-out works. All elements were tested for correct operation and the Occupation Certificate was issued on 13 October 2021. It is noted that in addition to the upgrade works completed under the funding and lessee fit out works a contribution of an additional $57,237.80 was paid by the lessee to Council towards the building upgrade works as follows:

Item

Total incl GST

Extra for double glazed windows

6,663.80

Extra concrete works for larger kitchen area

1,120.00

Extra for service work

10,150.00

Extra for larger rangehood

26,374.00

Extra for take away window works

3,200.00

Extra for tongue and groove ceiling to kiosk

5,880.00

Extra for additional rafters to support tongue and groove ceiling

1,197.00

Extra over for further additional service works

1,388.00

Cladding above exhaust hoods

1,265.00

Total paid 27 August 2021

$57,237.80

 

Unfortunately, Council received notification on 20 March 2023 that the lessee of Tathra Beach Kiosk had appointed a liquidator on 14 March 2023. Clause 23.1(e) of the executed lease agreement provides for the termination of lease upon liquidation.

Council has also been given the opportunity by Rapsey Griffiths who were appointed liquidators to make an offer for several items that have remained in the premises. Council was to submit a written offer for any of these assets by close of business on 22 March 2023. All assets listed are chattels which Council would not ordinarily supply as part of a building lease. It is however noted that an incoming tenant maybe interested in purchasing these assets. For this reason, Council officers wrote to the liquidator seeking additional time for Council or a prospective new tenant to consider making an offer for any of the assets. Council received advice on 29 March 2023 that the liquidator is under an obligation to act in a timely manner to take steps to realise the company’s assets, where viable to do so. But have agreed to provide Council until 30 April 2023 to confirm its position and make an offer for the assets. For completeness, the liquidator has also advised that a third party has also expressed interest in the assets at the premises. In the event Council does not proceed to make an offer for the assets, the liquidator reserves their rights to have the company’s assets collected from the premises to be realised for the benefit of unsecured creditors.

Options

The options available to Council are:

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

2.    Decline to accept the recommendation provided by Council officers and resolve to provide tenure to the second highest scoring applicant from EOI 2021-11.

Community and Stakeholder Engagement

Engagement undertaken

Council officers have consulted with Rapsey Griffiths who were appointed liquidators of the lessees’ company and provided the following:

1.            A copy of the lease

2.            Confirmation of current rental terms, including amounts payable and due dates

3.            Advice on rental arrears and outstanding rates and water balances

4.            Confirmation of the amount of the bond held.

 

Prior to the lessee’s occupation of the Tathra Beach Kiosk an EOI process via public tender was carried out between 23 July 2020 and 19 August 2020. The tender was available on Council’s e-Tendering portal and publicly advertised on Council’s website and Facebook page.

Since Council has received advice regarding the lessees’ liquidation the second highest scoring applicant from EOI 2021-11 has formally written to Council expressing their interest in pursuing a lease of the kiosk building. Whilst this option would enable a tenant to take over the building in a shortened timeframe it is a decision for councillors as to whether a further EOI process should be undertaken given the significant time that has passed since the EOI was last publicly advertised.

Engagement planned

To maintain transparency and avoid any suggestion of impropriety, Council officers are intending to run a public EOI process for the occupation of the kiosk building and report the results back to Council for consideration.

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

•     give public notice of the proposal (including on the Council’s website), and

•     exhibit notice of the proposal on the land to which the proposal relates

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

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

Financial and Resource Considerations

 

Credit balances

Rental credit balance as of 29 March 2023

-$20,383.84

Bond lodged with the Rental Bond Board

-$7,232.52

Outstanding debts

Rent up until 14 March 2023

$3,980.71

Rates up until 14 March 2023

$526.54

Water up until 14 March 2023 (special water meter read)

$862.67

Debtor (Liquid Trade Waste Inspection) up until 14 March 2023

$140.00

 

Council officers have confirmed with the liquidator that as the legal lessee is not the company, but rather, the company’s director, Council is entitled to make a claim on the bond for the outstanding debts listed above.

A market rental valuation was obtained from Opteon Property Group on 4 December 2020 which outlined an annual rental achievable of $26,300 plus GST per annum. The valuation was undertaken while the building was undergoing the substantial renovation project and at the date of inspection was an external shell with the entire internal of the structure comprising a timber frame structure and brick footings only. Council officers supplied the Valuer with copies of the plans and the valuation was undertaken on the basis that the property be extensively refurbished both internally and externally and upon completion will comprise of a modern and contemporary coastal style commercial kiosk and restaurant with an open plan dining area with extensive ocean and beach views, open commercial kitchen area with kiosk servery window shutters and bathroom amenities. Given the time that has past, and the addition of many building fixtures supplied by the lessee which have been left for Council an updated market rental valuation will be obtained prior to the premises being re-let.

As the lease is registered on title there will be costs involved in removing the current lease from the title as well as preparation and registration costs for any new lease Council enters into.

Legal /Policy

The Tathra Beach Kiosk lease falls under the provisions of the Retail Leases Act 1994 (NSW). In accordance with clause 23.1(e) of the executed lease agreement, Council may end the lease if the lessee ceases or threatens to cease to carry on business or goes into liquidation, whether voluntary or otherwise.  Clause 23.2 of the lease states that Council may end the Lease by:

(a) notifying the Lessee that it is ending the Lease; or

(b) re-entering the Premises, with force if necessary, and ejecting the Lessee and all other

persons from the Premises and repossessing them; or

(c) doing both.

A lease enables exclusive use over a piece of land or building for a specified term and purpose. A lease is considered the best form of agreement if longer-term security of tenure is an important factor to the user of the land – such as where commercial use is proposed, and major financial outlay is required.

An EOI process meets the following objectives:

•     to undertake an open, fair, and transparent process for the issuing of tenure for the use and occupation of the Tathra Beach Kiosk building located within Council Managed Crown Reserve R79310

•     to manage the use of Tathra Beach Reserve (R79310) in a way which complies with legislative requirements under the Crown Land Management Act 2016 (NSW) (CLM Act) and/or the LG Act

•     to optimise the potential use and financial return from activities conducted on Tathra Beach Reserve (R79310) which is under the direct management of Council.

In accordance with Council’s Management of Leases and Licenses Procedure tenure may be granted by:

•     public auction

•     public tender

•     invitations for expressions of interest

•     private treaty.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Delivery Program: 6.12.12- Develop and manage Council’s owned and managed land portfolio.

Environment and Climate Change

Tathra Beach is subject to coastal processes and hazards which may impact the kiosk building from time to time as has been the case in past years.

Economic

Tathra’s economy is primarily focussed on tourism and not having a key public tourism asset activated, from a visitation perspective detracts from the overall visitation experience, therefore it is imperative that this is addressed in any new lease issued for the kiosk building as Council has received many complaints over the years. In saying that it is a commercial decision for the operator as Council cannot legally enforce commercial entities to open their doors, Council is simply leasing the premises.

Risk

There are no adverse risks in allowing the building to be occupied if the use is authorised by way of a formal lease which contains appropriate indemnity and insurance clauses.

Council officers will be required to undertake a Native Title assessment and send notification to NTS Corp regarding a proposed new lease as it may affect Native Title interests in the reserve.  When exercising powers provided by the transitional arrangements under the CLM Act, Council Crown Land Managers must obtain written advice from a qualified Native Title Manager that the proposed lease complies with the Native Title Act 1993 (Cth).

Social / Cultural

Tathra Beach Kiosk has been well patronised by both locals and visitors to the shire and is an asset to the reserve and its users dating back to the 1950’s. For this reason, ensuring the ongoing operation of the kiosk is considered imperative.

Attachments

1.            Confidential report with results of EOI 2011-11 (Confidential - As this attachment contains commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret as per Section 10A(2)(d) of the Local Government Act 1993.

 

Although the above relates more explicitly to the discussion of closed business, it also forms part of the basis of justification as to why information relied upon in informing the public decisions made by Council are kept confidential. To consider this confidential material in open Council would be, on balance, contrary to the public interest (as defined in Section 14 of Government Information Public Access (GIPA) Act 2009). This meets the requirements of Sect 10 D of the Local Government Act 1993 if Council were to close the meeting to discuss the details.

 

 

 


Council 19 April 2023

Item 10.10

 

10.10.       Social procurement initiatives       

The purpose of this report is to provide an update and response following a recent Bega, Eden, Merrimans Aboriginal Liaison Committee Meeting, and a Question on Notice from Cr Dodd’s at the Council meeting of 19 September 2018.

Director Business and Governance     

Officer’s Recommendation

1.            That Council receive and note the report and actions taken to support local Aboriginal business.

2.            That Council continue to work with the NSW Office of Local Government and Local Government Procurement on initiatives to support Indigenous procurement practices.

3.            That Council commits to continue working with Local Government Procurement on improving the uptake of Local Government Procurement contracts by more local Indigenous business.

 

Executive Summary

This report follows a Question on Notice from Cr Dodd’s at the Council meeting of 19 September 2018 and an action from the recent Bega, Eden, Merriman’s Aboriginal Liaison Committee Meeting (BEM) regarding Council’s procurement policy guidelines. The action was to bring Council’s procurement policy guidelines in line with state and federal government guidelines and add weighting to suppliers who have Aboriginal identified employees.

This report outlines the steps that have been taken by Council officers to date and proposes further initiatives to support Aboriginal procurement practices in the future.

Background

At the BEM Meeting of 15 November 2022 an action was taken for Council officers to follow up on Council’s procurement policy guidelines to bring them in line with state and federal government guidelines and add weighting to suppliers who have Aboriginal identified employees.

In response to a Question on Notice from Cr Dodd’s at the Council meeting of 19 September 2018, Council officers reviewed tender documentation and processes, taking into consideration the state and federal government procurement policies. As a result, a question requesting information on how the tenderer shall, if successful, support the provision of opportunities for Aboriginal business development and/or provision of opportunities for Aboriginal participation was included within the returnable schedules for construction tenders.

Text Box: Council 19 September 2018 – Item 18.2. 
Cr Jo Dodds - Indigenous employment criteria infrastructure tenders        
 Notice of Motion
That Council add a weighting to the assessment of tenders for construction and capital projects in the Shire to require a percentage of Indigenous workforce. 
That until this is in place and forms part of the tender process, that tenderers be encouraged to highlight their commitment to Indigenous employment as part of their tender documentation.
Background
There are many upcoming major and minor civil works/infrastructure projects in the Bega Valley Shire which will attract tenders from local and other businesses. As a Shire with a significant population of Indigenous residents and a Memorandum of Understanding with the three Local Aboriginal Lands Councils (Eden LALC, Bega LALC and Merrimans LALC), it is appropriate that we encourage the provision of training and employment opportunities for Indigenous workers and trainees.
Such provisions, requiring percentages of Indigenous employees, are currently embedded in some State and Federal procurement/tendering processes. Projects such as the development of the Port of Eden and the construction of the South East Regional Hospital have already seen very positive outcomes in Indigenous training and employment.

Council’s procurement framework supports and is committed to ensuring social and sustainable procurement practices such as:

·    Efficient and effective operations

·    Value for money and whole of life considerations

·    Social sustainability and inclusivity

·    Sustainable environmental outcomes

·    Corporate and public risk management

·    Legislative compliance

·    Governance - probity, transparency and ethical behaviour

·    Industrial relations and respect for human rights

·    Continuous improvement and innovation

·    Effective contract management

As such, request for quotation and tender submissions are assessed against the quadruple bottom line principles which balance social, environmental, economic and governance outcomes, as opposed to purely looking at the financial cost. Aboriginal opportunities form part of the social principles. However, it is important to note social outcomes are broader than targeting specific groups or organisations. The social principles that should be considered as a part of quadruple bottom line principles take in local employment (in general), diversity, accessibility, ethics, cultural impacts, and social cohesion. Furthermore, it is important to note that whilst we do have various contracts and prequalification schemes, Bega Valley Shire Council does not have preferred supplier lists. Where possible, Council purchases goods and/or services via contracts which have been established by Local Government Procurement (LGP). LGP is a not-for-profit entity of Local Government NSW and is the peak body that represents NSW councils. Their objective is to share procurement expertise with councils, so that councils have strong procurement frameworks. LGP is also a ‘prescribed entity’ by legislation, meaning that councils are exempt from the requirement to go to tender where contractors are sourced from one of their panels.

At the local government level, it is important that social procurement initiatives support the range of relevant groups within the local community, including Aboriginal organisations, disability organisations and social enterprises. Under the state and federal models there is no obligation to employ or utilise local Aboriginal people, meaning that a contractor could meet the criteria through existing Aboriginal employees brought into the area, or through having components manufactured or supplied via Aboriginal owned suppliers elsewhere.

The NSW Office of Local Government (OLG) is currently undertaking a project to establish comprehensive guidelines for procurement. As a part of this project, Council has recommended to OLG that the guidelines include guidance on social procurement practices, including Aboriginal procurement procedures.

The NSW Aboriginal Procurement Policy (APP) was released by Treasury in January 2021 and applies to the procurement of all goods and services, including construction, by a government agency. The APP is focused on annual targets of 3% of goods and service contracts and 1% of all addressable spend to First Nation businesses. State government agencies are required to report quarterly on their performance against the APP targets. For the purposes of the APP, an Aboriginal business is one that has at least 50% Aboriginal ownership and is recognised through an appropriate organisation, such as Supply Nation, NSW Indigenous Chamber of Commerce, or the Office of the Registrar of Indigenous Corporations.

The Australian Federal Government’s Indigenous Procurement Policy (IPP) was released in December 2020 and works on annual targets for the volume and value of contracts awarded to Indigenous enterprises by the Commonwealth and each portfolio. The mandatory set aside requires Indigenous businesses be given an opportunity to demonstrate value for money before a general approach to market. The mandatory set aside applies to procurement delivered in remote Australia and for all other procurement wholly delivered in Australia valued between $80,000 and $200,000 (GST inclusive). Indigenous employment and business participation targets apply to contracts wholly delivered in Australia valued at $7.5 million or more in 19 industries, known as mandatory minimum Indigenous participation requirements.

LGP is currently undertaking a project which will shape its strategic direction in relation to engagement with Indigenous businesses and associations. This project will involve consultation with councils, and it is hoped that the project will achieve multiple outcomes which support Indigenous engagement.

Through the BEM Committee, Council is also actively working with the Land Councils to increase procurement opportunities for local Aboriginal organisations, including through support with registering for VendorPanel and Council’s Works and Services Panel. Council is also working with the Land Councils to increase employment opportunities for Aboriginal people through traineeships and other opportunities.

Options

At the local government level, it is important that social procurement initiatives support the range of relevant groups within the local community making it difficult to provide further additional options regarding Indigenous engagement.

Council is currently looking at ways to facilitate a comprehensive review of procurement policies and procedures including a benchmarking exercise on the existing procurement framework against the NSW Government Procurement framework.

Additionally, Council will continue to work closely with LGP on developing their Indigenous participation initiatives. Whilst still in the early stages, it is hoped that this will provide councils with tools and resources to attract more Indigenous businesses and encourage other businesses to support the Indigenous workforce and building skills for Indigenous people.

Community and Stakeholder Engagement

Engagement undertaken

Council has been working directly with OLG and LGP on initiatives which will assist Council in supporting Indigenous procurement practices.

Engagement planned

Council will continue to work with OLG and LGP on initiatives which will assist Council in supporting Indigenous procurement practices.

Engagement with the local Aboriginal community to provide input where possible will take place to ensure that initiatives will appropriately relate to local practices and local Indigenous business capacity.

Financial and Resource Considerations

Council’s current system does not have the ability to flag Indigenous owned businesses which creates challenges when marketing requests for quotation and tenders. Council does however advertise requests for contracts over $50,000 including GST to the open market. This means that Indigenous businesses can apply for any project or purchase they have the capacity to deliver.

The support for an Indigenous participation schedule in Council’s tender documentation is aimed at identifying and encouraging all businesses to find innovative opportunities to include Indigenous participation and development into the delivery of projects.

Council takes every opportunity to support Indigenous participation. For example, Council’s office supplies and cleaning consumables come from a special range known as the ‘First Nations range’. The products in this range have strong representation of Indigenous businesses across their supply chain. A percentage of profits from this range are also distributed to various not for profit organisations that support Indigenous people.

Legal /Policy

Councils in NSW are required to comply with the Local Government Act 1993, Local Government (General) Regulation 2021 and Guidelines for Tendering in Local Government which focus on contracts valued at over $250,000 including GST and provide a rigid process for procurement at the higher level.

Whilst the federal and state governments have comprehensive procurement frameworks which include policies relating to Indigenous procurement practices, there are inconsistencies between the two and there is no mandate for Council to comply. This can be challenging at the local government level as individual councils have different policies and procedures.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Bega Valley Community Strategic Plan 2040:

E.4 Council has robust financial management processes to ensure ongoing viability and value for money

A.2 Respect and promote our cultural heritage and diversity and partner with and acknowledge Traditional Owners and First Nations people

Delivery Program 2022-25:

E5.4 - Ensure good governance and effective practices in relation to procuring goods and services in support of the Procurement Improvement Plan 2021-25

A2.1.1 Facilitate the Bega, Eden, Merrimans (BEM) Aboriginal Liaison Committee

Environment and Climate Change

There are no environmental or climate change concerns associated with this report.

Economic

Council’s current procurement framework provides a mechanism for economic benefit to the local Aboriginal community as all requests for contracts over $50,000 including GST are advertised to the open market and a question requesting information on how the tenderer shall, if successful, support the provision of opportunities for Indigenous business development and/or provision of opportunities for Indigenous participation has been included within the returnable schedules for construction tenders. Additionally, Aboriginal organisations can register for Council’s Works and Services Panel, for work under $50,000 in value, if they have the relevant skills and expertise.

Risk

There is reputational risk to Council in relation to balancing social procurement initiatives as Council could receive criticism from a range of service providers including Aboriginal businesses, disability services providers, employment agencies, training providers which is why Council officers recommend working with OLG and LGP on initiatives to support Indigenous procurement practices prior to making any further adjustments to the current procurement framework.

Additionally, from the 1 July 2022, councils across NSW have additional obligations relating to the management of modern slavery risks, in all goods and services that we procure. When councils procure through LGP contracts, they have the benefit of LGP’s extensive resources dedicated to carrying out risk assessments and working with suppliers to manage any potential risks. Strong and effective fraud and corruption control is imperative for all levels of government and therefore Bega Valley Shire Council is obligated to ensure we manage risks in this area. Reducing duplication in purchasing as well as procuring via LGP contracts, assists in ensuring that fraud and corruption risks can be controlled.

Social / Cultural

At the local government level, it is important that social procurement initiatives support the range of relevant groups within the local community which is why requests for quotation and tender submissions are assessed against the quadruple bottom line principles which balance social, environmental, economic and governance outcomes, as opposed to purely looking at the financial cost.

Attachments

Nil

 


Council 19 April 2023

Item 10.11

 

10.11.       Exhibition of the Integrated Planning and Reporting documents     

This report recommends that the draft Delivery Program 2022-25 and Operational Plan 2023-24 and the draft Fees and Charges 2023-24 are considered by Council and placed on public exhibition.

Director Business and Governance  

Officer’s Recommendation

1.    That the draft Delivery Program 2022-25 and Operational Plan 2023-24 including Council’s Budget and Revenue Policy and the draft Fees and Charges 2023-24 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 2022-25 and Operational Plan 2023-24 including Council’s Budget and Revenue Policy and the Fees and Charges 2023-24 at the Council meeting on 14 June 2023.

 

Executive Summary

Under the NSW Integrated Planning and Reporting (IP&R) framework Councils are required to implement a 4-year Delivery Program and an annual Operational Plan and budget, along with annual Fees and Charges. 

Council submitted an application for a Special Rate Variation (SRV) in February 2023 and the outcome of that application will impact the budget for 2023-24 and the Long Term Financial Plan. The Independent Pricing and Regulatory Tribunal (IPART) have advised that a determination on the SRV application will be provided in mid-May 2023.

To ensure that Council can meet its IP&R obligations, the draft Operational Plan 2023-24 is being placed on exhibition now and outlines two versions of a budget with differing revenue projections for next financial year. One assuming the SRV will be approved, one assuming a rate peg increase only. The capital program and operational expenditure is the same for each budget, the difference between the two options, as is modelled in the adopted LTFP, is the point in time when Council’s cash position is not sustainable. Once the SRV determination from IPART is received Council can then adopt at the June Council meeting whichever version of the budget is relevant. The 2023-24 budget once adopted in June will also include the March quarterly budget review adjustments that are currently under review.

It is recommended that these documents are placed on public exhibition for 28 days, from Wednesday 19 April 2023 until close of business on Wednesday 17 May 2023.

 

Background

The Local Government Act 1993 requires all NSW councils to review and adopt key integrated plans under the NSW Integrated Planning and Reporting (IP&R) framework. 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 (noting this term of Council is shorter given the delay with the Local Government Elections) 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, digital investment and asset management. It provides a vital link between the Community Strategic Plan and Delivery Program.

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.

Delivery Program 2022-25 and Operational Plan 2023-24

The Delivery Program for this term of Council and the Operational Plan for 2023-24 are presented as a combined document (Attachment 3). The Delivery Program details Council’s response and commitment to implementing, within available resources, the long term vision contained in the Community Strategic Plan 2042.

The Operational Plan 2023-24 outlines what Council will do next financial year to meet the needs of the community, within the available funding sources. Unique to this year’s Operational Plan is that it outlines two versions of a budget with differing revenue projections for next financial year. One assuming the SRV will be approved, one assuming a rate peg increase only. Once a determination from IPART is provided Council can then adopt at the June Council meeting whichever version of the budget is relevant. The Independent Pricing and Regulatory Tribunal (IPART) have advised that a determination on the SRV application will be provided in mid-May.

The Operational Plan is divided into the service areas of Council. Each service area has identified the core business and key improvement projects they will deliver, with the budget and staffing levels they have. The 2023-24 budget was outlined in the LTFP adopted in February 2023 and since that time amendments have been made to the 2023-24 budget that relate to inclusion of grant income received since that time, increased in assumption of salaries and wages expense as the Local Government Award is under negotiation, digital transformation investment, assumed revenue adjustments with new fees and charges added and changes to Water, Sewer and Waste modelling to reflect future capital projects.

The draft 2023-24 budget being placed on exhibition does not include any adjustments to the end of the March quarter for projects that may need to carry over to the next financial year. The March quarterly budget review adjustments are currently under review and will be included in the final version of the 2023-24 budget that is presented for adoption in June.

This year Council is embedding the South East NSW Resilience Blueprint into our planning to ensure that resilience principles are incorporated and continuously improved upon as part of everything we do. Throughout the Operational Plan a resilience icon has been applied that highlights the work we are doing in delivering upon the Resilience Blueprint.

Revenue Policy

The Operational Plan contains Council’s revenue policy for 2023-24. The revenue policy outlines the proposed rating structure, pensioner rebates, borrowings, debt recovery, transfer of rates and supply charges for water, sewer and waste services. Below is the projected general rates income for both budget options- rate peg increase only and if the SRV is approved.

Waste service charges have increased by 4.1% in line with rate peg and is reflective of the 30-year modelling undertaken as part of the Waste Strategy implementation. Given the volume of current and future capital projects in water and sewer, balanced with a recognition of the escalating construction costs (11.2% to Dec 2022) water and sewer charges have increased by 7.5% based on the February 2023 CPI figures.

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 several Council facility management committees have provided their input into draft fees for next financial year. Fees and charges in general (not including statutory fees, fees set by management committees or those aligned with CPI) have been increased by 5%. The draft Fees and Charges 2023-24 are Attachment 2 to this report.

There have been several new fees and charges added in the Certification and Compliance area for 2023-24 to better reflect the cost for providing the service and for our fees to be commensurate with other Councils. As part of this review process several fees and charges were also removed, generally as a result of consolidating a range of existing fees and charges. The Public Spaces (Unattended Property) Act 2021 has also resulted in some adjustments to fees and charges. See Attachment 1 for summary of the recommended changes and new fees.

Options

Council has a range of options when considering the recommendations included in this report. Delaying the exhibition of the IPR documents will have future impacts. Council is legislatively required to have its suite of IPR documents adopted by 30 June 2023.Community and Stakeholder Engagement

Engagement undertaken

Extensive internal engagement has been undertaken in the development of these IP&R documents. Councillors have been engaged in the development of these documents and the Audit Risk and Improvement Committee will review them at its next meeting.

Engagement planned

Council will engage with the community from 19 April 2023 to close of business on Wednesday 17 May 2023 by:

•     Making the IPR suite of documents available for the community to read on Council’s website, in our public libraries and at the customer service counter in Zingel Place, Bega

•     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.

Financial and Resource Considerations

In February 2023 Council submitted an SRV application to IPART for a permanent special rate variation of 24% in 2023-24 (inclusive of 4.1% rate peg) and 19.6% in 2024-25, (inclusive of assumed 2.5% rate peg). This two-year SRV results in a cumulative increase of 48.3% at the end of 2024-25. The SRV was applied for to meet the rising costs of delivering services and maintaining and renewing our community assets.

The draft Operational Plan includes two versions of a 2023-24 budget- one assuming the SRV is approved, one assuming revenue increases by the rate peg only (4.1%). The income statements in the Operational Plan provide an overview of the total estimated income and expenditure for each of Council’s General, Waste, Water, and Sewer Funds as well as the Consolidated fund.

The focus in developing the 10-year Long Term Financial Plan (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.

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.

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 Guidelines and Handbook are comprehensive tools which have been used in the revision of this suite of IP&R documents.

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 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.

Council has a responsibility to ensure that adequate services are provided to the community, and that financial planning is transparent to provide confidence in Council’s ability to deliver on the community’s priorities.

CSP 2042 Theme: Our civic leadership – Local leadership is strong, consultative and responsive to our community’s needs

CSP 2042 Strategy: E.1 Lead, govern and regulate in an ethical, equitable, transparent and accountable way

Delivery Program 2022-25 Action: E3.1 - Support implementation of Council’s strategies and plans and report on progress

Environment and Climate Change

Councils Long Term Financial Plan models our ongoing financial need to maintain our current levels of service. Council’s ongoing financial sustainability is impacted by numerous factors including the increasing frequency and severity of weather events on Council’s infrastructure. Our assets team continue to consider the implications of maintaining and renewing our existing assets within a changing climate. Council’s decision to proceed with applying for an SRV below was what initially recommended will result in a reduction to the required capital program that will only serve to further exacerbate the impact of a changing climate on Council’s assets.

 

Several of the Delivery Program actions and Operational Plan activities listed support the implementation of Council’s adopted Climate Resilience Strategy, amongst other environmental focussed work.

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 and long-term financial planning have flow on effects to the local economy and this is considered as part of the LTFP and annual 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. Should the SRV be approved this will result in an even greater level of investment in our community.

In August 2022, the Australian Local Government Association compiled a report for submission to the Local Government Productivity Inquiry. The report noted that ‘fiscal constraints for remote councils reverberate through the local economy through foregone output and employment. Additionally, the Australia Institute highlights the stimulatory effect of local government expenditure and employment in regional areas, where the work of local government investment contributes a much greater share of economic activity than in metropolitan areas – this contribution needs to be properly acknowledged as a serious risk if that source of activity then becomes constrained.’(Source: https://alga.com.au/app/uploads/Final-Report-SGS-Research-Aug-2022.pdf)

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 forward focussed IPR and annual budget development process helps to provide transparency and accountability into the financial management and forward planning of Council.

Social / Cultural

Council has insight into what the community wants through our IP&R and community engagement initiatives; and knows that our community places a high priority on maintaining our current levels of service. Council manages approximately $1.7b worth of assets for the community including things like buildings, swimming pools, playgrounds, libraries, bridges, roads, waste facilities and a vast water and sewer network. We are a large shire (by area) and maintaining and renewing these assets is expensive. We also have a relatively small number of ratepayers compared to the size of our shire and vast areas of state and national parks and forests from which we are unable to generate income.

The documents being placed on public exhibition will have future social and cultural implications, particularly if the SRV is approved. Council is aware that an SRV may cause undue hardship for ratepayers who have been financially impacted by the bushfires and pandemic. However increasing investment in Local Government, only serves to improve the communities within which they operate.

The challenge Council faces is balancing affordability with the community’s desire to maintain our current levels of service. Impacts of the proposed budget once adopted will be monitored throughout the year and any adjustments needed is done through the quarterly budget review process.

Attachments

1.         Attachment 1- 2023-24 Fees and Charges- Changes Overview

2.         Attachment 2- Draft Fees and Charges 2023 24 For Exhibition

3.         Attachement 3- 2023-24 Draft Delivery Program Op Plan For Exhibition

 


Council

19 April 2023

Item 10.11 - Attachment 1

Attachment 1- 2023-24 Fees and Charges- Changes Overview

 

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Council

19 April 2023

Item 10.11 - Attachment 2

Attachment 2- Draft Fees and Charges 2023 24 For Exhibition

 

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Council

19 April 2023

Item 10.11 - Attachment 3

Attachement 3- 2023-24 Draft Delivery Program Op Plan For Exhibition

 

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Council 19 April 2023

Item 10.12

 

10.12.       Certificate of Investment March 2023     

This report details Council’s cash and investments at the end of March 2023.

Director Business and Governance  

Officer’s Recommendation

1.    That Council receive and note the report on Council’s investment position as of 31 March 2023.

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

 

Executive Summary

I, Judy Jordan, as the Responsible Accounting Officer of Bega Valley Shire Council, hereby certify the investments listed in the attached reports have been made in accordance with Section 625 of the Local Government Act 1993 (the LG Act), clause 212 of the Local Government (General) Regulation 2021.

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

On 31 March 2023 the total capital value of cash and investments was $120,018,206.38 with 89% of Council’s investment portfolio directed to term deposits and the remainder held in cash deposit accounts. Council has earned year to date interest income of $1,372,445 which is 89% of the projected budget amount.

The value of outstanding government grant debtors as of 31 March 2023 is $6,045,900.99 with $740,715.09 aged 4+ months.

Background

The Local Government Act 1993 and Local Government Regulation 2021 require that the Responsible Accounting Officer must present to council monthly, the status of the investments held by council. The Responsible Accounting Officer must detail the investments held, and their compliance with both internal policy and external regulation under the Ministerial Order of Investments.

Options

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

Community and Stakeholder Engagement

Engagement undertaken

There is no community or stakeholder engagement associated with the recommendation of this report.

Engagement planned

The investment details of council are published in council business papers and are publicly available at Council offices and on Council’s website.

Financial and Resource Considerations

A list of Councils cash and investments held at 31 March 2023 is detailed below:

Issuer

Rating

Type

Purchase

Maturity

Rate (%)

Capital Value ($)

 

Commonwealth Bank

AA-

CASH

-

-

-

2,389,023.66

 

Commonwealth Bank

AA-

CASH

-

-

-

11,000,000.00

 

NSWTC IM SCF

AA-

CASH

-

-

-

129,182.72

 

Commonwealth Bank

AA-

TD

28/04/2022

28/04/2023

2.71

5,000,000.00

 

Westpac

AA-

TD

10/02/2022

11/05/2023

1.00

5,000,000.00

 

Commonwealth Bank

AA-

TD

02/06/2022

08/06/2023

3.23

5,000,000.00

 

NAB

AA-

TD

11/01/2023

13/06/2023

4.24

5,000,000.00

 

NAB

AA-

TD

09/02/2023

10/07/2023

4.30

2,500,000.00

 

Suncorp

A+

TD

31/03/2023

31/07/2023

4.44

3,000,000.00

 

AMP Bank

BBB

TD

03/02/2022

02/08/2023

1.35

5,000,000.00

 

Commonwealth Bank

AA-

TD

11/08/2022

11/09/2023

4.01

2,000,000.00

 

Commonwealth Bank

AA-

TD

19/09/2022

19/09/2023

4.32

2,000,000.00

 

Commonwealth Bank

AA-

TD

26/08/2022

26/10/2023

4.17

2,000,000.00

 

Bank of Queensland

BBB+

TD

31/03/2023

31/10/2023

4.62

3,000,000.00

 

NAB

AA-

TD

24/02/2023

24/11/2023

4.77

3,000,000.00

 

NAB

AA-

TD

09/02/2023

11/12/2023

4.60

5,000,000.00

 

NAB

AA-

TD

10/02/2022

14/12/2023

1.43

5,000,000.00

 

NAB

AA-

TD

17/01/2022

17/01/2024

1.25

2,500,000.00

 

NAB

AA-

TD

28/02/2023

29/01/2024

4.92

2,000,000.00

 

Westpac

AA-

TD

08/02/2022

08/02/2024

1.59

10,000,000.00

 

Westpac

AA-

TD

09/02/2023

11/03/2024

4.75

5,000,000.00

 

P&N Bank

BBB

TD

15/12/2022

15/04/2024

4.60

5,000,000.00

 

Commonwealth Bank

AA-

TD

10/02/2022

16/05/2024

1.65

5,000,000.00

 

NAB

AA-

TD

24/02/2023

24/06/2024

5.00

2,500,000.00

 

NAB

AA-

TD

28/02/2023

29/07/2024

4.98

2,000,000.00

 

Commonwealth Bank

AA-

TD

10/02/2022

15/08/2024

1.75

5,000,000.00

 

Westpac

AA-

TD

30/09/2022

03/10/2024

4.78

2,000,000.00

 

Commonwealth Bank

AA-

TD

15/12/2022

16/12/2024

4.59

5,000,000.00

 

Westpac

AA-

TD

08/02/2022

10/02/2025

2.00

5,000,000.00

 

Australian Military Bank

BBB+

TD

31/03/2023

16/04/2025

4.50

3,000,000.00

 

Total Cash and Investments

$120,018,206.38

 

Interest earned for March 2023

$244,193

Financial year to date interest earned

$1,372,445

Budgeted interest for 2022/2023 financial year – December QBRS

$1,544,250

Percentage of the 2022/2023 budget earned by council

89%

 

The COVID-19 pandemic has adversely impacted financial markets, which in turn, also affected Council’s investment portfolio. After global central banks set official interest rates to emergency levels during the height of the pandemic in 2020, financial markets have transitioned to recovery phase resulting in council seeing an increase in interest rates. Despite the aggressive rate hikes, the term deposit market has already factored in the current rate hike cycle. Interestingly, deposit rates have shifted lower over March 2023 especially the 1-5 year terms following contagion fears within the banking sector and the potential for the RBA to have rate hikes towards the back-end of 2023 or early 2024.

The Cash and Investments held by council has increased significantly during February and March 2023. This is predominantly due to rates instalment income, and a significant amount of funding received through grants.

Council’s investment portfolio is largely directed towards term deposits (89%). The remainder of the portfolio is held in cash deposit accounts with CBA and TCorp (11%).

The investments held by Council remain sufficiently liquid with 71% of investments maturing within the next 12 months.

As at 31 March 2023, Council’s portfolio was yielding 3.25% with a weighted average duration of 268 days. As Council’s existing term deposits mature and new funds become available, we can expect yield on investments to increase.

Council utilises the platform Imperium Markets, to assist in conducting, managing, and reporting on council’s investments. This provides an automated process of sourcing quotes and investing monies which is allowing Council to better address investment risks. Additional to the platform, Imperium Markets are providing investment advice on the surrounding market conditions and how council can maximise returns within the Ministerial order and Council’s investment policy.

Table 1: Investments by Fund $’000

Fund

January 2023

February 2023

March 2023

General Fund

42,766

47,475

48,581

Water Fund

21,521

22,499

25,674

Sewer Fund

45,340

47,383

45,763

TOTAL

109,627

117,357

120,018

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

Included in the General Fund investments are amounts that are externally restricted for specific purposes, i.e. contributions and unspent grants. In addition, there are amounts that are internally restricted by Council.

The following table provides details of all funds and reflects adjustments adopted by Council on 15 February 2023 in the December Quarterly Budget Review Statement (QBRS). It includes the balance of restrictions projected at 30 June 2023.

Source of Funds

Value

Total Cash and Investments at 31 March 2023

$120,018,206

External Restrictions (projected)

$52,636,590

Internal Restrictions (projected)

$13,552,024

Unrestricted Funds

$53,829,592

Budgeted expenditure to 30 June 2023

$58,378,123

Expected unrestricted funds balance at 30 June 2023

($4,548,531)

The value of outstanding government grant debtors on 31 March 2023 is $6,045,900.99 with $740,715.09 aged 4+ months. Council continues to work with our funding partners to reduce these debts.

Legal /Policy

Section 625 of the Local Government Act 1993 determines money may only be invested in a type of investment authorised by Order of the Minister for Local Government and published in the Local Government Gazette. The current Ministerial Order of Investment was published 17 February 2011.

Clause 212 of the Local Government (General) Regulation 2021 determines the Responsible Accounting Officer must provide Council with a written report setting out details of all money Council has invested under Section 625 of the LG Act.

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

Council has an Investment Policy, policy number 6.07. This policy is reviewed every four years by council and annually by council officers.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

This report is provided in accordance with Council’s Community Strategic Plan (CSP), Delivery Program (DP) and Operational Plan (OP).

CSP Theme:                    Our civic leadership – Local leadership is strong, consultative and responsive to our community’s needs

CSP Strategy:                  E.4 Council has robust financial management processes to ensure ongoing viability and value for money

Delivery Program:        E4.2 - Ensure Council’s revenue streams are maximised

Operational Plan:         Finance - core business: Manage Council’s borrowings and investments in accordance with council’s financial strategy

Environment and Climate Change

Council considers the importance of environmental, social and governance factors in investment decision making.

Economic

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

Risk

Council policies have strict guidelines to reduce Council’s risk to capital. The following graphs provide visual representation of Councils compliance to these measures.

Risk management means our investments are made giving regard to key criteria of counterparty, credit quality and maturity compliance.

Since the adoption of the new investment policy in November 2022 there has been a slight ‘overweight’ counterparty position to CBA (around $8M as at 31 March 2023). This is primarily due to the operating cash/at-call account balances (around $13M) held with CBA. This can be rectified by placing surplus funds with other institutions, as well as redeeming upcoming maturing deposits with CBA. Council can expect to see this ‘overweight’ reduce over the coming quarter with a $5M CBA Term Deposit maturing during April 2023 and another $5M CBA Term Deposit maturing in June 2023.

All other individual banks are within the policy limits. The portfolio is diversified, by counterparties and terms of investment.

Other legal instruments, such as the Ministerial Order referenced above, are also being used to mitigate financial risk.

 

Legend:           Compliant                               Non-Compliant

 

 

 

 

 

Social / Cultural

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

Attachments

Nil

 


Council 19 April 2023

Item 10.13

 

10.13.       Australian Local Government Association (ALGA) 2023 National General Assembly     

The Australian Local Government Association (ALGA) 2023 National General Assembly of Local Government (NGA) is being held at the National Convention Centre in Canberra from 13 to 16 June 2023.

Chief Executive Officer  

Officer’s Recommendation

That Council endorse the Mayor and nominated Councillors to attend the ALGA 2023 National General Assembly and note the Chief Executive Officer’s attendance at the National General Assembly.

 

Executive Summary

The 2023 National General Assembly of Local Government is being held at the National Convention Centre in Canberra from 13 to 16 June 2023 with The Mayor, Chief Executive Officer and nominated Councillors invited to attend.

Background

ALGA is the peak national body representing local councils across Australia. The 2023 National General Assembly (NGA) of Local Government will be held in Canberra from 13 to 16 June 2023.

The theme of the Assembly for this year is “Our Communities Our Future” which reflects looking for ideas for new federal programs and policies that would support councils to build stronger communities in the future.

Information on the National General Assembly is available here

Attached to this report is the 2023 National General Assembly Registration Brochure.

Options

There are limited options associated with this report. 

Community and Stakeholder Engagement

There has not been and is not intended to be any community engagement on this item.

Engagement undertaken

There has not been and is not intended to be any community engagement on this item.

Engagement planned

There has not been and is not intended to be any community engagement on this item.

Financial and Resource Considerations

Council’s currently adopted budget makes adequate provision for attendance at the National General Assembly.

Legal /Policy

There are no legal policy implications associated with this report.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

There are no Strategic Alignment implications associated with this report.

Environment and Climate Change

There are no Environment and Climate Change impacts associated with this report.

Economic

There are no Economic implications associated with this report.

Risk

There are no Risks associated with this report.

Social / Cultural

There are no Social/Cultural impacts associated with this report.

Attachments

1.         2023 National General Assembly Registration Brochure

 


Council

19 April 2023

Item 10.13 - Attachment 1

2023 National General Assembly Registration Brochure

 

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Council

19 April 2023

 

 

Notices of Motion

 

19 April 2023

 

13.1            Review of parking enforcement........................................................................ 587


Council 19 April 2023

Item 13.1

 

13.1. Cr David Porter - Review of parking enforcement       

 

Notice of Motion

1.    That Staff provide Councillors with the following Bega Valley Shire data from July 1, 2022:

a)    The overall number of parking infringements issued and broken into category and location/town (e.g., Mobility Zone, Loading Zone, Exceed Time etc.)

b)    The number of fines where a review was requested.

c)    Breakdown of any withdrawn infringements or infringements overturned in court based on categories as referred to in part a above.

d)    Any identifiable trends resulting in infringements being withdrawn or overturned

e)    Any readily available information on the number of complaints received about parking enforcement

2.    That council review council’s policies and procedures relative to parking enforcement in a councillor workshop to ensure all policies are best practice and consistent with relevant laws, Council’s objectives and expectations of the community including transparency and accountability.

Background:

After fielding numerous complaints about unfair or overzealous parking enforcement and as there have been several fines recently overturned in court or withdrawn, there is sufficient evidence to suggest that council needs a review of its parking enforcement guidelines and policies. 

Council must ensure it is operating at the highest level of ethics and integrity while in service to the community.

Cr David Porter

 

Attachments

Nil

    


Council

19 April 2023

 

 

Questions without Notice

 

19 April 2023

 

15.1            Cr Porter – Could staff please report what actions have been taken to comply with the relevant recommendations for local government in response to Tathra - Reedy Swamp bushfires?.......................................................................................................... 589


Council 19 April 2023

Item 15.1

 

15.1. Cr Porter – Could staff please report what actions have been taken to comply with the relevant recommendations for local government in response to Tathra - Reedy Swamp bushfires?       

At the 2023.03.22 ordinary council meeting Cr Porter said last Saturday marked 5 years since the Tathra - Reedy Swamp bushfires.

A subsequent Coroner’s report released 15 months ago made recommendations that numerous changes be made across agencies involved to improve our resilience to such devastating events.

Could staff please report what actions have been taken to comply with the relevant recommendations for local government?

Chief Executive Officer, Anthony McMahon took the question on notice.

Chief Executive Officer  

Staff response

Below are the recommendations from the 2021.12.17 Coroners report into the fire at Reedy Swamp, Tarraganda and Bega/Tathra, noting there aren’t any relating to Local Government.

Recommendations

To Essential Energy

i. That Essential Energy review the contemplated process of reconfiguring the fault curve applicable to reclosers under the “group D4 settings” to give consideration to prioritising reclosers in areas of greatest bush-fire risk.

ii. That Essential Energy conduct a further review of the settings applicable to sensitive earth faults on Total Fire Ban days with a view to determining whether further changes to the fault settings would be appropriate on such days, having regard to the capabilities of reclosers in the network and the implications of such measures for customer health and key public infrastructure.

iii. That Essential give consideration to seeking a revision to the VMCR/VMR such that the nomenclature applied to “grow-in” (Tier 1) hazards and “fall-in” (Tier 2) hazards be changed so as to avoid the implication that fall-in hazards are subsidiary to grow-in hazards.

iv. That Essential consider reviewing the guidance provided in the VMCR/VMR to:

a. clarify that a given dead, dying or structurally unsound tree that is seen from the perspective of the network assets should be designated a Tier 2 defect even where further investigations are necessary to assess the hazard the tree poses to the network; and

b. confirm that a scoper is not themselves required to conduct an assessment of the structural integrity of a tree before reporting it as a Tier 2 defect.

To Essential Energy, Asplundh and Pinnacle

i. That Essential, Asplundh and Pinnacle review the training, guidance material and assessment provided to scopers to:

a. ensure that adequate training in tree risk assessment and visual tree assessment is provided to scopers;

b. ensure that scopers’ capacity to identify dead, dying or structurally unsound trees is adequately assessed; and

c. ensure that adequate guidance is provided in relation to when it is necessary to conduct scoping work on foot, rather than in a car or from a stationary position.

ii. That Essential, Asplundh and Pinnacle ensure that rangefinder binoculars or devices with similar functionality are provided to all scopers.

iii. That Asplundh and Pinnacle review the software used by scopers to ensure that it appropriately prompts scopers to consider Tier 2 defects and enter details regarding them.

To the Commissioners of the NSW Rural Fire Service and Fire Rescue NSW

i. That the NSW Rural Fire Service conduct a review of the training provided to personnel likely to occupy leadership roles within the Incident Management Team at the Bega Fire Control Centre to ensure that appropriate emphasis is placed on “worst case scenario planning”.

ii. That the NSW Rural Fire Service review the staffing arrangements applicable to the Bega Fire Control Centre to ensure that: the Incident Management Team includes:

a. The Incident Management Team includes appropriate dedicated intelligence gathering personnel;

b. Planning and intelligence officers be included in the pre-formed Incident Management Team on high bushfire risk days.

iii. That the NSW Rural Fire Service review the roll-out of the AVL devices and associated software applications to ensure that fireground commanders are able to effectively discern the location of resources while in the field. This review should include a consideration of the implications of failures in mobile phone networks.

iv. That the NSW Rural Fire Service and Fire and Rescue NSW jointly review the arrangements applicable to radio usage in relation to operations involving both NSW Rural Fire Service and Fire and Rescue NSW personnel to ensure that fire ground commanders are able to effectively communicate with, and provide directions to, members of other services.

v. That the NSW Rural Fire Service and Fire and Rescue NSW review inter-agency training arrangements, to ensure that appropriate inter-agency practical exercises are conducted on a regular basis.

vi. In the early stages of an incident or an IMT being formed, liaison officers from all fire-fighting agencies should be requested, and each agency should make reasonable endeavours, given operational demands and personnel.

 

Please follow this link to the FINAL 2021.12.17 Coroners report into the fire at Reedy Swamp Tarraganda and Bega/Tathra.

Attachments

Nil