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ExtraordinaryMeeting Notice and Agenda
An Extraordinary Meeting of the Bega Valley Shire
Council will be held at Council Chambers, Biamanga Room Bega Valley
Commemorative Civic Centre Bega on
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ExtraordinaryMeeting Notice and Agenda
An Extraordinary Meeting of the Bega Valley Shire
Council will be held at Council Chambers, Biamanga Room Bega Valley
Commemorative Civic Centre Bega on
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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.
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.
· 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?
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.
· 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.
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?
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.
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.
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Contact |
Phone |
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Website |
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Bega Valley Shire Council |
(02) 6499 2222 |
council@begavalley.nsw.gov.au |
www.begavalley.nsw.gov.au |
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ICAC |
8281 5999 Toll Free 1800 463 909 |
icac@icac.nsw.gov.au |
www.icac.nsw.gov.au |
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Office of Local Government |
(02) 4428 4100 |
olg@olg.nsw.gov.au |
http://www.olg.nsw.gov.au/ |
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NSW Ombudsman |
(02) 8286 1000 Toll Free 1800 451 524 |
nswombo@ombo.nsw.gov.au |
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)
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Item no & subject |
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Pecuniary Interest
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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. |
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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. |
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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. |
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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. |
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If Pecuniary |
Leave chamber |
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If Non-pecuniary (tick one) |
Disclose & vote Disclose & not vote Leave chamber |
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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 |
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Print Name |
I disclose the above interest and acknowledge that I will take appropriate action as I have indicated above. |
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Signed |
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NB: Please complete a separate form for each Item on the Council Agenda on which you are declaring an interest.
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Extraordinary Council |
7 June 2023 |
Pecuniary, Non-Pecuniary and Political Donation Disclosures to be declared and tabled.
3.1 Proposed divestment of Bega Valley Regional Learning Centre..................................................... 7
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Extraordinary Council |
7 June 2023 |
Staff Reports – Business and Governance
07 June 2023
3.1 Proposed divestment of Bega Valley Regional Learning Centre........................................................ 7
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Extraordinary Council 7 June 2023 |
Item 3.1 |
3.1. Proposed divestment of Bega Valley Regional Learning Centre
A formal request has been received for the purchase of Bega Valley Regional Learning Centre and Council direction is being sought on how to proceed.
Director Business & Governance
1. That Council receive and note the report and attached Confidential Memorandum.
2. That Council delegate authority to the Chief Executive Officer and Mayor to negotiate a sale of Lot 210 DP 1181811 at 14 Cabarita Place, Merimbula, for a minimum value as determined by Council.
3. That all fees to finalise this matter be payable by Council from the proceeds of sale.
4. That the remaining proceeds of sale be placed in an internally restricted property development and reinvestment reserve
5. That Council hereby authorise its official seal to be affixed to the contract documents under the signature of the Chief Executive Officer and Mayor.
Executive Summary
A formal offer to purchase Lot 210 DP 1181811, being Bega Valley Regional Learning Centre in Merimbula has been received and Council consideration is requested to progress with divestment of the property.
Background
Council resolved at its Ordinary Meeting of 15 June 2022, when considering the future ownership and management of the Bega Valley Regional Learning Centre as follows:
1. That Council continue to accept proposals for the purchase of the Bega Valley Regional Learning Centre for a minimum sale price of $5 million
2. That all offers be reported back to Council for consideration
3. That Council increases permanent lease within the Bega Valley Regional Learning Centre and tests the open market by running an Expression of Interest process inviting submissions for permanent leases of vacant suites and the co-workspace
4. That Council retains both the Mumbulla and Bittangabee rooms as bookable meeting rooms
5. That Council approves the extension of tenure for up to five (5) years to existing commercial tenants in the Bega Valley Regional Learning Centre for commercial rental as outlined in the attached Confidential Operating Report.
6. That Council approves tenure for up to five (5) years to PCYC for their proposed occupation of suite 9 for the commercial rental of $21,985.56, declining to grant a rental rebate.
7. That Council authorise the Chief Executive Officer and Mayor to execute all necessary lease documentation.
A notice of motion was later considered at Councils Ordinary Meeting of 21 September 2022 which superseded the above resolution as follows:
1. That Council appoint a suitably qualified real estate agent by competitive quotation process to represent Bega Valley Shire Council’s interests in divesting of Bega Valley Regional Learning Centre by public auction, private treaty or expression of interest.
2. That Council delegate authority to the Chief Executive Officer to enter into a suitable Agency Agreement with the successful real estate agent upon completion of the competitive quotation process for the marketing, sale negotiation and transactional settlement of the above mentioned property.
3. That Council delegate authority to the Chief Executive Officer to make an assessment based on current market conditions in consultation with the appointed real estate agent on the reasonableness of any offer made for the Bega Valley Regional Learning Centre
4. That all reasonable offers be brought back to Councillors for final Resolution.
Following the Resolution of Council, a competitive request for quotation process to appoint a suitably qualified Real Estate Agent to represent Bega Valley Shire Council’s interests in divesting of Bega Valley Regional Learning Centre was undertaken from 7 – 21 November 2022 with Sails Real Estate awarded the works and a formal agency agreement finalised on 16 December 2022.
Sails Real Estate has formally written to Council with an offer for the purchase of Bega Valley Regional Learning Centre which is detailed in the attached Confidential Memorandum to councillors.
Options
The options available to Council are:
1. Proceed with disposal of Lot 210 DP 1181811 at 14 Cabarita Place, Merimbula for the value as offered and resolve accordingly.
2 Decline to accept the offer received and advise the offeree of Council’s decision and an agreed value for the disposal of Lot 210 DP 1181811 at 14 Cabarita Place, Merimbula.
3. Retain ownership of Lot 210 DP 1181811 at 14 Cabarita Place, Merimbula and remove the property from the market, giving Sails Real Estate 30 days’ notice in writing to terminate the Agency Agreement in place.
Community and Stakeholder Engagement
Engagement undertaken
As Sails Real Estate were appointed to market the property on Council’s behalf, ongoing engagement has taken place between Council staff and the Agent who have been dealing with all enquiries.
Prior to marketing commencing Council’s legal representatives were engaged to prepare the necessary sale contract and will be required to formalise the documentation to finalise the sale of property.
Engagement planned
Council officers will continue to consult with the Agent and legal representatives to action the resolution of Council.
Bega Valley Regional Learning Centre tenants and users will be advised of the outcome of this report.
Financial and Resource Considerations
Bega Valley Regional Learning Centre has been listed on the open market for expression of interest.
All options will have additional financial and resource implications. A sale option will include additional officers' time and resources as well as the engagement of legal representatives and legal costs. Costs involved in the proposed disposal of Bega Valley Regional Learning Centre will be offset against the proceeds of sale.
It is recommended that proceeds of sale should the property be sold be internally restricted for reinvestment into property development that supports social and economic outcomes combined with financial return to Council.
Legal /Policy
Under the Local Government Act 1993 (NSW) (LG Act), there is no restraint on Council’s ability to sell or otherwise dispose of land classified as operational land. Section 377(1)(h) of the LG Act requires a specific Resolution of Council to dispose of any land.
In accordance with Council’s Acquisition and Disposal of Land Procedure, all decisions, and actions relating to the disposal of land and buildings must have due regard to the following fundamental principles:
• Best value for money – achieving “best value” may include financial, social and environmental benefits.
• Transparency – processes must be open to scrutiny and provide full information and record the reasons behind the decisions.
• Accountability – demonstrate the best use of public resources and the highest level of performance through appropriate record keeping and audit trails.
• Impartiality – address perceived or actual conflicts of interests.
Impacts on Strategic/Operational/Asset Management Plan/Risk
Strategic Alignment
Delivery Program 2022-25: B2.2 - Provide, manage and promote use of the Bega Valley Regional Learning and Commemorative Civic Centres.
Environment and Climate Change
There is no environment and climate change matters associated with the proposed divestment of the property.
Economic
In accordance with Council’s adopted financial policy, Council will be required to use the proceeds from the sale of ‘operational’ land to leverage investment or strategic outcomes.
Council may also use funds generated from land disposal to leverage acquisition of other land critical to the orderly development of important urban or environmental areas, to supplement its revenue sources and minimise the demand for increasing rates above rate-pegging, or a reduction in services.
Risk
In accordance with Council’s Acquisition and Disposal of Land Procedure, disposal of land by Council requires a formal process that ensures probity, due diligence, analysis of risk and other key issues.
In determining its direction, Council should consider several risks associated with this report including but not limited to:
• Reputational risks:
o Community's view on how Council is handling the management of the BVRLC.
o Disposal of this asset may have logistical issues for tenants and their business operations.
o BVRLC provides Council with short reappropriation for undertakings that the organisation desires e.g. Continuity Management Centre in BVSC Business Continuity Plan, office space for staff, meetings, training.
o Prolonged disposal process has made it challenging to attract and retain tenants due to Council’s inability to provide long term security of tenure.
· Financial risks:
o Ongoing liabilities related to building management whilst in Council ownership, the cost of operating the facility; and future costs to undertake major works, should the building stay in Council ownership.
o If the occupancy rate of the facility is low, there is a financial risk to Council.
Social / Cultural
All current tenants at the Bega Valley Regional Learning Centre were advised of the proposed divestment of the facility and will continue to be informed of any resolution of Council.
There are no social / cultural matters associated with the proposed divestment noting that any potential future development of the site would have these factors as a key consideration in the development assessment process.
Attachments
1. Confidential memorandum to councillors regarding divestment of Bega Valley Regional Learning Centre (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.
2. Opteon Property Group valuation report for Bega Valley Regional Learning Centre (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.
3⇩. Bega Valley Regional Learning Centre Sails Real Estate advertisement
