Agenda of Council - Wednesday, 16 October 2024

Council 16 October 2024

Item 9.1

9.1. Katchencarry Creek Bridge Replacement - Procurement of Bridge Decks and Abutments

This report requests Council endorsement of a single source procurement process for bridge components to support the fully funded Fixing Country Bridges Program and replacement of Katchencarry Bridge.

Director Assets and Operations

Officer’s Recommendation

1. That Council accepts the recommendations contained in the confidential memorandum.

2. That Council approves the single select procurement of bridge decks, wingwalls, abutments & associated components as per quote number 808.004 from InQuik Pty Ltd to the value of $605,400 ex GST.

3. That Authority is delegated to the Chief Executive Officer to execute all necessary documentation.

Executive Summary

This project is funded under the State Government’s Fixing Country Bridges (FCB) program.

The use of prefabricated bridge components shortens the construction duration of upgrades, reduces the need for onsite specialist trades and enables council staff to complete the construction.

Council has successfully used InQuik prefabricated bridge components to upgrade four other bridges in the Bega Valley Shire and this approach will enable Council to meet the FCB grant funding milestone of project completion by February 2025.

Support is sought for an exemption under section 55(3)(i) of the Local Government Act 1993, to purchase prefabricated bridge elements that will be used to replace the existing timber bridge at Katchencarry Creek.

Background

In May 2024, Fairlight consulting engineers finalised the detailed design of the replacement bridge over Katchencarry Creek using the InQuik bridge system. The Fairlight design used of 18.5m long and 8.4m wide bridge decks with 2.8m high abutments.

The Katchencarry Creek Bridge replacement project is a fully funded capital project through the Transport for New South Wales (TfNSW) Fixing Country Bridges (FCB) program.

FCB funding program supports the use of modular components as they are a cost-effective approach to the replacement of timber bridges.

Options

Option 1. That Council support this single select procurement. (Preferred option)

It is recommended that Council endorse the procurement of the bridge components under section 55(3)(i) of the Local Government Act. This will allow Council to deliver the upgrade of Katchencarry Creek bridge in line with its commitments under the funding deed. This recommendation represents a low risk, cost effective, proven method of delivering an upgrade to the existing timber infrastructure.

Option 2. That Council doesn’t accept this method of procurement. (Not preferred option)

Failure to adopt the recommendation could result in Bega Valley Shire Council failing to meet its commitments to the state government as part of the FCB program by not meeting stringent timelines. Council would have to undertake a lengthy procurement process and redesign of the bridge and it is highly unlikely that this could be completed within the stipulated timeframes.

Program

Bega Valley Shire Councils in house ‘Bridge Team’ is scheduled to carry out the upgrade the Katchencarry Creek Bridge. Demolition of the existing timber bridge and installation of the new InQuik bridge is expected to take 10 weeks.

Construction preliminaries for this project are complete including survey, design, Review of Environmental Factors (REF) and geotechnical investigations, however, the REF and Fisheries permit are yet to be approved.

Community and Stakeholder Engagement

Engagement was undertaken with internal and external stakeholders concerning the best solution for the design and delivery methods of the new bridge and through this consultation a modular InQuik system was highlighted as the preferred method due to Council’s experience using the system and is an approved option under the FCB program.

Engagement undertaken

Council officers regularly meet with TfNSW representatives to update them on the progress of this project. TfNSW feedback is that they support the recommended approach.

Council officers have also consulted with internal stakeholders on the delivery method of this project.

Engagement planned

Council officers will continue to meet monthly with TfNSW until the project is fully executed and consultation with relevant internal stakeholders will also be continued through regular meetings and verbal consultation.

Financial and Resource Considerations

This project is a fully funded capital project through the TfNSW, FCB program which commenced in August 2022.

The Project Lead for this project will oversee the procurement of the decks and other pre- construction activities. On commencement of works the BVSC Bridge Team – Team Leader will be responsible for overseeing construction. The total project budget is $1,845,984 and considered adequate to cover material purchase and site installation costs. Construction of a concrete bridge at the site will reduce the whole of life costs of the bridge relative to its predecessor.

Legal /Policy

The preferred supplier is an LGP Approved Contractor under LGP420 and as such can be directly appointed under a standing deed offer. As the calling of tenders by LGP meets all the requirements of the Local Government Act Regulations (and that LGP has achieved Prescription), LGP customers do not need to independently tender for items sourced under this arrangement.

The quotation provided by InQuik and the standing offer deed have the same conditions as those used on the FCB rounds 1 and 2 for InQuik bridges and the FCB MOU.

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.

D.2. Provide infrastructure and services to meet the needs of residents in our towns, villages and rural areas..

D.3 Improve the presentation, maintenance and physical accessibility of existing towns and villages.

Delivery Program 2022 - 2025:

D1.1 – Plan for asset capital works.

D2.3 - Construct (upgrade or renewal) civil assets / infrastructure.

Environment and Climate Change

Replacement of the timber Katchencarry Creek bridge with a concrete bridge will significantly improve the Upper Brogo Road’s resilience to natural disasters as it can safely remain open for longer during flood and bushfire events.

Economic

The InQuik system allows for faster easier onsite installation as specialised machinery and specialised tradespeople are not required. The system can be installed by a Councils Bridge Team with the assistance of cranes to lift the bridge elements into place.

Risk

The InQuik bridge deck system has been successfully utilised on these Bega Valley Shire Council upgrade projects:

· Buckajo Creek

· Meringola Creek

· Johnston Creek

· Wonboyn River bridge

This system is being used to upgrade the timber bridge over Sam Woods Gully, Wandella and the existing single lane bridge at Watergums Creek, Wonboyn.

These projects give Council officers high confidence in the system and Council’s ability to install a high-quality new bridge within the timeframe required by the finding deed.

Social / Cultural

Upgrade of the Katchencarry Creek bridge will provide a higher level of service and community value to the residents of Upper Brogo Road.

Attachments

1 . 2024.10.16 Confidential Memorandum to Council report Katchencarry creek bridge Replacement – Procurement of Bridge Decks and Abutm updated (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.

Council 16 October 2024

Item 9.3

9.3. Request for Tender (RFT) 2324-087 SCADA data analysis and reporting

This report outlines the evaluation of Request for Tender (RFT) 2324-087 for upgrading the Water and Sewer treatment plant Supervisory Control and Data Acquisition (SCADA) systems to GeoSCADA. This upgrade is part of an ongoing initiative to standardise SCADA systems across all of Council’s Water and Sewer network sites.

Director Assets and Operations

Officer’s Recommendation

1. That Council accepts the recommendations outlined in the attached confidential memo.

2. That Council rejects all tenders under clause 178 of the Local Government (General) Regulation 2021 and delegates the Chief Executive Officer to enter negotiations and finalise an outcome with the preferred tenderer, with the intention to award a contract, subject to variations and provisional sums.

3. That authority is delegated to the Chief Executive Officer to execute all necessary documentation and award a contract.

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

Executive Summary

This report evaluates RFT 2324-087 which seeks to upgrade the SCADA system to Council’s Water and Sewer treatment plants. The project scope includes the design and installation of an upgraded GeoSCADA system throughout the treatment plants, and implementation of data analysis and reporting software.

The systems across the Water and Sewer network have already been updated to GeoSCADA. A new contract is necessary to begin upgrades across Council’s treatment plants. This upgrade will align the treatment and network systems which will provide significant ongoing operational and maintenance benefits, as well as improve system reliability.

All tenderer submissions have been assessed according to Council’s procurement criteria, with detailed evaluations provided in the attached confidential memo.

Background

• The sewer treatment plants currently use an outdated SCADA system installed by Tenix Group Pty Ltd in 2007, which has reached the end of its design life. The network operations team have already transitioned to the GeoSCADA system as a part of the previous contracts (RFT30-20, 33-20 and 36-20).

• The contract seeks to upgrade the treatment plants SCADA system to the new GeoSCADA system over a six-month period from contract execution, ensuring consistency across Council’s Water and Sewer assets. The tender also includes a new data logging and reporting system which would operate adjacent to the GeoSCADA system.

• The procurement process allowed 21 days for tender submissions to be received. Two mandatory pre-tender meetings were held to clarify the project intent and answer any questions from tenderers. Tender submissions closed 6 July 2024 with 4 submissions received.

• The tender panel reviewed submissions using Council’s weighting process with 40% price 60% non-price factors including methodology, experience, capacity to deliver, suitable staff and delivery time.

Options

1. Upgrade the Water and Sewer treatment SCADA system and install a new data logging and reporting system (Recommended).

This option aligns the treatment and network systems which will provide streamlined operations, reduce maintenance complexity, and improve system reliability. Additionally, the data logging and reporting software will improve data accuracy and support how Water and Sewer services operate and maintain our systems efficiently. The software will also enable non-operational staff access to GeoSCADA data without interrupting normal operations.

2. Update the Water and Sewer treatment SCADA to the newest version of Citect SCADA and renew the existing failing equipment (Not Recommended).

Although this option addresses equipment at the end of its life, it retains two different SCADA systems between treatment and network operations. This option continues the complications of data transfer between treatment and network operations, which impedes operational efficiency and continues to require staff expertise in two different systems. This solution doesn’t optimise our operations or allow ease of transferring data from treatment to networks. Extra re-engineering time would be required for this to be implemented and would not lead to cost benefits.

3. Do nothing. (Not Recommended)

This option leaves the current SCADA system in place, which is increasingly unreliable due to aging hardware. Continued system failures will lead to costly emergency repairs and inefficient plant operation. Additionally, data access would remain limited with no improvements in reporting or remote access.

Community and Stakeholder Engagement

The table below outlines the main stakeholders:

Stakeholder Group	Internal/External	Level of Engagement
Water and Sewer Services – Assets	Internal	Involve
Water and Sewer Services – Maintenance	Internal	Involve
Water and Sewer Services – Treatment Operations	Internal	Involve
Water and Sewer Services – Network Operations	Internal	Involve
Information, Communication and Technology (ICT)	Internal	Involve
Purchasing, Procurement and Contracts	Internal	Consult

Engagement undertaken

As this is an internally driven project, no external stakeholder engagement was required during project scoping and planning.

During project scoping stakeholder forums were undertaken to identify the reports that will be automated. This process will continue during the design phase to ensure data integrity and confidence in the report data.

Information Communication and Technology have highlighted initial concerns regarding data ownership, integration, and storage security implications. We are ensuring the proposal meets the Corporate IT Systems/Services Procurement Assessment.

Engagement planned

During the design phase, internal stakeholders will be involved in designing the user interface, including SCADA mimics, data entry tables, reports, and dashboard features. Council’s Information Communication and Technology (ICT) team will review the design to ensure risks are identified and adequate measures are put in place for mitigation. Roles and responsibilities will be defined as part of the engagement with ICT.

Financial and Resource Considerations

The funding is captured in the long term financial plan and comes out of the Water and Sewer fund.

Item	$ Excl GST
Expenditure Detail
RFT 2324-087 Contract Cost	Refer to Confidential memo
Allocated funds for internal staffing & management costs	Refer to Confidential memo
Maximum provisional item/s allowed for within the Contract	Refer to Confidential memo
Total Possible Expenditure	Refer to Confidential memo
Source of Funds
Water and Sewer Budget (WO #8703 & #8769)	$900,000
Total income available	$900,000

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts	$ Excl GST
Annual maintenance and operational costs	Refer to Confidential memo
Depreciation costs	Based on 10 year life

Legal /Policy

The tender process complied with Section 55 of the Local Government Act 1993, part 7 of the Local Government (General) Regulation 2021 and Section 171 of the Local Government Regulations.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

CSP A7.1 – Coordinate the planning and implementation of the disaster recovery infrastructure program

CSP A8.1 - Deliver programs and activities to protect our community’s environmental health and safety

CSP B8.1 - Advocate for better Telecommunications services in our area and partner with local providers to understand local challenges

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

CSP C5.1 - Lead climate change mitigation and adaptation through implementation of our Climate Resilience Strategy

DP C1.1.1 - Program delivery of a strategic scenario for water and sewer services

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

DP C1.1.3 - Operate and maintain water supply and sewage treatment plants to meet health and environmental regulatory requirements and level of service objectives

Environment and Climate Change

The integration of the GeoSCADA system across the whole of Council’s Water and Sewer services will enable more efficient energy and water usage monitoring, leading to potential savings through the analysis of the real time data.

Improving remote access to the GeoSCADA system will reduce the need for on-site visits, therefore decreasing travel related emissions.

Economic

The data collection and analysis software will support better operational decision making, reporting and optimisation of treatment plant performance. It will also enable more accurate maintenance scheduling, reducing unplanned outages and extending asset life.

Risk

The current SCADA system hardware installed in 2007 is failing and poses an operational risk. While efforts have been able to maintain operational and data integrity, the system is reaching a point where a reportable incident is likely.

Data storage in the current SCADA system is limited to 3 years, leading to a potential loss of information unless manually transferred. Some data is also recorded manually which leads to potential operator error and incorrect data being logged. This data is critical and is used to assess when renewals and upgrades are required. The recommended option mitigates these risks by ensuring system reliability, remote access, and automatic logging.

Additionally, access to data on the current SCADA is via the operating terminal. This can result in the operator not being able to operate the treatment plant while data is being collected or analysed. The new data collection software will store this in a secure non-operational area, so operations and data analysis are separated.

Social / Cultural

A unified SCADA system will enable better coordination and communication between the network and treatment teams, supporting Council’s “One Council” approach.

Attachments

1. 2024.10.16 Confidential Memo RFT 2324-087 SCADA Data Reporting and Analysis (Confidential - As this attachment contains commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret as per Section 10A(2)(d) of the Local Government Act 1993.

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

Council 16 October 2024

Item 9.4

9.4. Request for Tender (RFT) 2324-091 Sewerage Works Rehabilitation Program 2025-2027

This report details the outcome of the evaluation of Tender RFT 2324-091 Sewerage Works Rehabilitation Program 2025-2027 and recommends award to the preferred tenderer.

Director Assets and Operations

Officer’s Recommendation

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

2. That Council accepts the schedule of rates tender from (xxxx) in relation to contract for the works described in Tender RFT 2324-091 for a period of three years, for the ceiling amount of $3,000,000 (excluding GST), subject to variations.

3. That variations and amendments to the contract be managed under the existing Council financial delegations.

4. That authority be delegated to the CEO to execute all necessary documentation.

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

Executive Summary

Water and Sewerage Services (WaSS) have sought a qualified contractor to undertake necessary sewerage rehabilitation works and smoke testing within the sewerage network over three years.

The contract will be a schedule of rates contract, no commitment to a lump sum amount is required, but any spend will be at the submitted unit rates in accordance with the ceiling amount budget.

Background

Sewerage works and rehabilitation is a reoccurring annual program in the sewer fund that addresses the risks associated with aging sewerage infrastructure. The previous three (3) year engagement for sewerage rehabilitation works has completed. It is recommended that Council enter another three (3) year engagement with a suitable contractor.

The intention of the contract is that the existing pipe network is relined using a propriety system with an anticipated 50 life extension to the asset. The contractor will use existing pipe condition assessment data and create a strategic program of works. The contractor will then undertake that program of works over three years.

This RFT was issued on Local Government Procurement (LGP) panel LGP420 Minor and Major Civil Works including Construction Materials: Drainage and Construction in order to engage a suitably qualified contractor.

Options

If these works are not carried out the number of sewerage chokes and sewage spills from the network will increase due to pipeline degradation.

Option 1. Council staff carry out these works. (Not Preferred Option)

WaSS Network Operations staff currently only undertake reactive rehabilitation works as required. With limited resources, staff are unable to undertake the extensive amount of rehabilitation works required themselves.

Option 2. The preferred contractor is engaged to carry out these works for the contract period. (Preferred Option).

Community and Stakeholder Engagement

As rehabilitation works move to an area, all residences and businesses are notified of the upcoming works and any potential risks.

Contractors engage with the WaSS Assets team and Network Operations team to mitigate construction and operational risks.

Engagement undertaken

Engagement undertaken has been limited to council WaSS staff. Engagement outside of WaSS staff has not been required prior to contract award.

Engagement planned

Inform – Residences and businesses by letter drop and door knocking if attached to rehabilitation areas prior to works.

Consult – Contractor will consult with WaSS Assets and Network Operation teams.

Financial and Resource Considerations

The long term financial plan for the sewer fund has dedicated $1,580,000 FY25 and $1,200,000 for FY26 and FY27 to sewerage works and rehabilitation. $1,000,000 of this budget each year is dedicated to the proactive sewer rehabilitation and smoke testing program.

Item	$ Excl GST
Expenditure Detail
Annual Sewerage Rehabilitation works FY25	$1,000,000
Annual Sewerage Rehabilitation works FY26	$1,000,000
Annual Sewerage Rehabilitation works FY27	$1,000,000
Total Expenditure	XXXX (sum of all costs)
	$3,000,000
Source of Funds
Sewer Fund	$1,000,000


Total income available	* total income = total project cost
	$3,000,000
Total Project Capital Cost	$3,000,000
Total Available Construction Funding	$3,000,000
Project Funding Shortfall	$ 0

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts	$ Excl GST
Capital Investment \| Renewal, Upgrade, New	$3,000,000
Depreciation costs	The actual costs will be depreciated over an expected 50 year life extension as dictated following condition assessment and remedial works.

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

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

DP C1.1.10 Undertake water and sewerage main renewals on damaged, unserviceable pipes.

Environment and Climate Change

Sewerage rehabilitation will be undertaken by no-dig methods where practicable, minimising environmental impact to environment and constructed road pavements.

Sewerage rehabilitation reduces the possibility of sewage contaminating the surrounding soil and water bodies.

Economic

Sewerage rehabilitation in high risk areas will reduce the possibility of sewage contaminating water bodies, reducing the negative economic impact on adjacent business owners.

Risk

Delivery of the rehabilitation program will achieve reduction of sewer network failure risk such as sewer choke and sewer spill that can occur in deteriorated sewer pipes, sewer maintenance shafts and sewer junctions.

Delivery of the sewer smoke testing program will achieve reduction in stormwater infiltration to the sewer network and sewer treatment plants which will reduce the risk of non-compliance sewer treatment at an inundated sewer treatment plant.

Social / Cultural

Delivery of the rehabilitation program will ensure the sewer network functions properly and residents will experience fewer disruptions in the form of sewer backups and unpleasant odour.

Fewer disruptions can result in reduced public complaints leading to increased community satisfaction and pride in our local infrastructure.

Delivery of the rehabilitation program and smoke testing will allow strategic planning of sewerage infrastructure, minimising the impact on community and sensitive sites that may be experienced during sewer network failures.

Attachments

1. 2024.10.16 Confidential Memo_RFT 2324-091 Sewerage Works Rehabilitation Program 2025-2027 (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.

Council 16 October 2024

Item 9.5

9.5. Request for Tender (RFT) 2324-095 Fixing Country Bridges (FCB) Bridge Renewals: Dignams Creek, Murrabrine Creek and Ritchies Lagoon

To seek Council’s endorsement for contractor delivery of three bridge renewal projects, funded by the Fixing Country Bridges (FCB) Program.

Director Assets and Operations

Officer’s Recommendation

1. That Council endorses the conclusion and recommendations in the attached Confidential Memorandum. 2. That Council accepts the preferred tenders in relation to contract for the works described in Tender RFT 2324-095 as follows:

a) Separable Portion 1 (SP1) – Dignams Creek Bridge with <insert tenderer>, in the amount of $<insert amount> (including GST);

b) Separable Portion 2 (SP2) – Murrabrine Creek Bridge with <insert tenderer>, in the amount of $<insert amount> (including GST); and

c) Separable Portion 3 (SP3) – Ritchies Lagoon Bridge with <insert tenderer>, in the amount of $<insert amount> (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 considers tenders received for the renewal of three timber bridges. The renewal projects are fully funded by the NSW Government’s FCB Program. The projects are for the design and construction of Dignams Creek, Murrabrine Creek and Ritchies Lagoon bridges. The Program assists local government by supporting the renewal of aging timber bridges with modern concrete structures.

These three bridge renewal projects are technically the most challenging of Council’s 18 projects funded by the program. Projects have been delivered by both Council’s bridge team and contractors. These are the last projects of the program to be delivered by contractors. The completion of these projects is required by 31 August 2025, in accordance with the agreed Funding Deed.

The tender provided concept designs, geotechnical, environmental and survey information for each of the sites to enable the tenderers to provide their concept designs and program proposals for delivery by 31 August 2025. The tender document invited tenderers to submit for one or more projects, as separable portions, potentially with discounts for more than 1 project awarded.

Background

Council applied for funding in November 2021 to Round 2 of the NSW Government’s FCB Program. This program was a $500m fund to support Local Government bodies in the renewal of aging timber structures with modern equivalents.

These three bridge renewal projects are technically the most challenging of the 18 projects funded by the Program. Council was provided with funding for 12 projects in Round 1 of the Program, announced in February 2021. Funding for a further 3 bridges, as part of Round 2A was announced in July 2022 and a further 3 bridges in December 2022 as part of the final round, 2B. The delivery of these 3 projects is required to be complete by 31 August 2025, in accordance with the agreed Funding Deed.

Council was informed in July 2022 that it was successful in securing finding under Round 2A for Dignams Creek bridge and December 2022 as part of Round 2B, for the renewal of Murrabrine Lane and Ritchies Lagoon bridges.

This report seeks to inform Council of the process undertaken to reach a recommendation for the delivery of these projects. If endorsed, Council will award contracts to the preferred tenderer(s) to undertake the design and construction of the bridges by 31^st August 2025.

The projects are 100% funded by the FCB Program and thus there is no monetary contribution by Council towards the renewal of these three bridges. The Program objective is to support local government in renewing aging timber bridges with modern concrete structures, which provide lower whole of life costs and higher levels of service (allow access for heavy vehicles, improve safety, are resistant to fire & flooding and reduce disruption for maintenance and the community at large).

An online pre-tender briefing was held, and tenderers were advised of the need to comply with the program requirements for renewal to comply with AS 5100 Bridge Design and council’s preference to achieve a structure with the lowest whole of life cost and minimal maintenance requirements.

Tender clarifications were through Vendor Panel forum. Clarifications included that steel girders would be considered, but whole of life cost was of vital importance. It should be noted that while steel girders potentially save cost in construction, they require repainting in the future, resulting in typically higher whole of life costs. No tenders offered weathering steel options.

Council had the option of internal or external delivery for these projects. Council’s bridge team is also fully engaged in delivering 3 other FCB projects by 31 August 2025 hence external contractors is the only viable option.

Options

There are various options that could be considered by Council ranging from declining some or all tenders and returning the funding to the FCB Program with the risk that the bridges will fail and Council has insufficient funds to replace; to the preferred option which is to accept the staff recommendation and award the tenders as detailed in the Confidential Memo (the preferred option).

Community and Stakeholder Engagement

The projects were identified for the FCB Program based on form of construction (timber) and condition (typically poor), to meet the objectives of the program. These renewal proposals are included in Council’s adopted Structures Asset Management Plan (AMP).

Engagement undertaken

No formal external engagement has been undertaken at this time other than with relevant funding bodies.

The projects are essentially renewals of existing assets, with modern materials. The cost is fully funded by the FCB Program. The required Program signage is in place, advising users that renewal is planned and funded as part of the Program.

It was decided to not engage with the community in advance of the project tendering, as there was no basis to reliably inform residents of the timing and duration of any closures.

Engagement planned

Once a contractor is engaged, it is intended that the Project Manager will work with the contractor to inform the community of the timing and duration of proposed road and bridge closures or service restrictions (including power and water) and minimise these wherever possible.

Financial and Resource Considerations

The projects are fully funded by the FCB Program and there are sufficient funds allocated to each of bridges to allow completion and retain a minor contingency for unexpected variations and latent conditions. The recommended tenders are discussed in the Confidential Memo attached.

It should be noted that the renewal of the 3 bridges will replace aging timber structures in poor condition, with modern equivalents. The new concrete structures will have a design life of 100 years. It is anticipated that these structures will achieve this life in full and provide a higher level of service than the existing timber structures at a lower whole of life cost.

Item	$ Excl GST
Expenditure Detail
SP1 Dignams Creek Bridge Renewal	Refer Confidential Memo
SP2 Murrabrine Lane Bridge Renewal	Refer Confidential Memo
SP3 Ritchies Lagoon Bridge Renewal	Refer Confidential Memo
Total Expenditure	$ (sum of all costs)

Source of Funds	$ Excl GST
Fixing Country Bridges Program - Dignams Creek Bridge Renewal	Refer Confidential Memo
Fixing Country Bridges Program - Murrabrine Lane Bridge Renewal	Refer Confidential Memo
Fixing Country Bridges Program - Ritchies Lagoon Bridge Renewal	Refer Confidential Memo
Total income available	$

Total Project Capital Cost	Refer Confidential Memo
Total Available Construction Funding
Project Funding Shortfall	0

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts	$ Excl GST
Capital Investment \| Renewal	As funded by Fixing Country Bridges Program
Annual maintenance and operational costs	c. $300/year for all 3 bridges
Depreciation costs	c.$67,000/year for all 3 bridges
User charges (annual income)	Nil

Legal /Policy

The funding has been offered by the NSW Government as part of the FCB Program. The open, public invitation to tender was issued via Vendor Panel. 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

The proposed bridge renewal projects align with the Structures AMP, Operational Plan (OP) and Long Term Financial Plan (LTFP). The renewal of poor condition timber structures with concrete structures is entirely consistent with Council’s adopted Structures AMP. None of the proposed projects involve heritage listed timber structures (which were not eligible for Program funding).Environment and Climate Change

The renewals, as concrete structures, are considered to offer the best whole of life costs available. The proposed designs offer longer spans than existing timber structures, reducing the number of piers in the waterway and their effect. The proposed bridges have a design life of 100 years, compared with around 25 years for timber bridges. It is anticipated that the new bridges will have a modest reduction in environmental effects, compared to the existing timber bridges.

Economic

The renewal of these bridges with funding from NSW government reduces the cost burden on the community and provides a new asset with higher levels of service, at the lowest whole of life costs, including negligible operational and maintenance costs for the next 50 years. After 50 years, it is likely that maintenance works such as refurbishment of guardrails may need to be undertaken.

Risk

Renewal of bridges is not without risk. However, this work will inevitably need to be undertaken at some point in time.

Financial risk has been addressed by requesting and reviewing financial information for the recommended tenderers. No unacceptable issues were identified.

Reputational risk has been considered. Council applied to the FCB program to support a significant program of renewals. These projects are considered the most challenging of the group to deliver. Failure to successfully deliver the projects would impact Council’s reputation with our funding partner, Transport for NSW, and the community. The successful delivery of the projects is dependent on the timely nature of accepting the proposed recommendations.

Construction risk will be addressed by implementing usual bridge construction measures to reduce site risks to an acceptable level.

There is inherent risk of projects not being completed by the FCB deadline dates. The funders have indicated that there will be no extensions in time granted and Council will work with the nominated contractors to expedite the project works.

Social / Cultural

Renewal of the bridges will have a social impact on the local users during construction work. The impacts will be minimised by undertaking the works as quickly as reasonably practical. However, the positive benefits of completing the projects will secure more reliable and resilient access to the local community.

Attachments

1. 2024.10.16 RFT 2324-095 Confidential Memorandum to Councillors FCB Bridge Renewals, Dignams Creek, Murrabrine Creek and Ritchies Lagoon (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.

Council 16 October 2024

Item 9.6

9.6. Merimbula Airport General Aviation infrastructure

This report relates to the provision of sewer infrastructure to service all new lots within the Merimbula Airport General Aviation precinct as well as proposed headwork charges for sites.

Director Assets & Operations

Officer’s Recommendation

1. That Council receive and note this report.

2. That Council endorses a budget of $250,000 for the provision of sewage infrastructure to service all new lots within the General Aviation Precinct with the amount to be adjusted at the December quarterly budget review.

3. That Council endorses the proposal to levy headworks charges to lessees upon development of the sites within the General Aviation Precinct.

Executive Summary

The purpose of this report is to determine whether Council should install sewer infrastructure required to service the newly created lots within the General Aviation (GA) Precinct.

The report details options available to Council in relation headworks charges that may be applicable to lessees when the lots are developed.

Background

General Aviation Precinct overview

The General Aviation (GA) Precinct was initially identified in the Merimbula Airport Master Plan that was formally adopted in 2014. One of the primary drivers for the development of the site to the north of the terminal was to separate GA traffic from Regular Passenger Transport (RPT) aircraft.

The GA Precinct is a special purpose facility that contains 21 sites. It provides airside access for aerodrome users and is designed to provide the general aviation community with a place for aircraft hangarage as well as cater for air industry supporting businesses. It is intended for mixed private and commercial use with a range of different lot sizes to cater for different aircraft hangarage needs.

The GA Precinct was built as part of a broader package of works that included upgrades to the runway, taxiways and main RPT apron. This work was substantially completed in 2022. Several unforeseen issues have caused delays to the final completion of works of the GA Precinct with the connection of the site to power the only outstanding work yet to be undertaken and this has been subject to Essential Energy industrial action issues.

As part of the capital works outlined above, infrastructure was installed providing the lots with electrical, water and communication connections at the land side boundaries. The pressure sewer line was connected to the Councils sewer network however, the sewer pumps, gravity lines and lot boundary kits were never installed. At the time it was unclear what the intended use of the lots were and if sewer was required. For example, several of the existing hangars used by aircraft owners at the southern end of the Merimbula Airport only use the hangars for aircraft storage and have no requirement for a sewerage connection.

GA Precinct Expression of Interest process

An Expression of Interest (EOI 2223-043) process was completed to understand the needs of the GA market particularly the number of interested parties and their composition of intended use. While the offer of lots was fully subscribed, the interest of prospective tenants in a sewer connection was not gauged in this EOI process.

The outcomes of this EOI were brought to Council in a report on 22 March 2023.

A major finding of the EOI was the wide variety of use cases for the lots that included commercial business operations as well as private aircraft hangarage. Some applicants intended to store their aircraft and create a small office space within the hangar building. Given that Council does not intend to provide an additional public amenity facility at the Merimbula Airport this use would necessitate the lessee to include a toilet and wash basin, as a minimum, in their development. Additionally, for commercial enterprises, to cater for employees, facilities such as kitchens and lunchrooms would be required.

This outcome has driven Council staff to develop a scope and initial cost estimate for the additional infrastructure required to provide sewer connections to each lot within the GA Precinct.

A separate report is included in this business paper with respect to allocation of sites.

Developer section 64 contributions (headworks charges)

The GA Precinct is a unique development within the Shire. This is the only instance where Council is offering new land only leases with 20-year terms. As the lessees will be required to develop the sites, they will place additional demand on Council’s water supply and sewerage infrastructure and therefore would be eligible to pay headworks.

Section 64 of the Local Government Act (1993) allows councils to charge financial contributions or require construction work from developers to help cover the cost of water and sewer systems.

Headworks charges are applicable to both water and sewer and are relatively simple to understand and apply when addressed for standard domestic premises. With industrial or other developments water can be addressed again relatively simply with options to purchase either additional entitlements or pay a High Consumption Charge. Sewer use is determined by calculating a discharge factor based on how much of the water used by a development actually gets into the sewer system and can vary dependent on site usage.

Council staff have assessed the type of development and compared this against an equivalent tenement (ET) (domestic). It has been determined that for the larger lots (10-14) lessees should be charged 0.5 of an ET and for the smaller lots, 0.25 of an ET would be chargeable. For the entire GA Precinct this would equate to a total of 6.5 ET’s each for Water and Sewer. Based on FY 24/25^{^[1]} ET rates this equates to approximately $170,000. A more detailed breakdown is outlined in Table 1.

Table 1 Water and sewer headworks charges

Headworks	No of lots	ET	ET (24/25)	Total
Smaller lots Water	16	0.25	$ 10,981	$ 43,924
Larger lots Water	5	0.5	$ 10,981	$ 27,453
Smaller lots Sewer	16	0.25	$ 15,371	$ 61,484
Larger lots Sewer	5	0.5	$ 15,371	$ 38,428
Total				$ 171,288

Options

In relation to the provision of sewer infrastructure to the lots there are two options available to Council:

1. Not install a connection to existing sewage infrastructure.

Under this option a lessee who wanted to connect to the sewer network would be responsible for installing a gravity line from their boundary connecting to a pod at the sewer rising main. The cost of the supply and installation of the pod and gravity line would be borne by the lessee and they would also be required to pay headworks charges at the time.

Advantages

This option has no upfront cost for Council.

Council would take ownership of these assets and charge a usage fee that funds the operation, maintenance and replacement of this infrastructure at its end of life.

Disadvantages

The lessee who first connects to the main sewer line will fully fund this infrastructure and subsequently subsidize later connections. This could be a significant disincentive for the first connection to the sewer line.

This could introduce complexity into secondary lessee sewer connections.

Works could be completed in an ad-hoc manner by multiple construction contractors possibly leading to varying standards of delivery.

Could encourage illegal connections to the Council sewer line.

Lessees may use airport terminal toilet facilities.

It is inconsistent with how Council manages connections on subdivision development which requires connections up front.

2. Install sewerage infrastructure.

Under this option Council would oversee the installation of the remaining sewer infrastructure required to service all the lots within the GA Precinct. This option would have an upfront cost of up to $250,000 plus GST as well as an ongoing operation, maintenance and replacement costs as per Option 1.

This cost would be borne by Council and work would be undertaken as soon as possible, ideally prior to the commencement of development by the lessees.

This option would facilitate sewer connections as there would be a standard connection point at the corner of the lot boundary.

Advantages

The delivery of the sewer infrastructure will be cost effective, coordinated and have the least disruption to airport operations and use by lessees.

The value of lots to current and future lessees will be enhanced.

May encourage more intensive development and usage of lots.

Disadvantages

This option has an upfront cost for Council.

In relation to Section 64 Developer Contributions, there are broadly two options available:

1. Waive fees for both water and sewer.

In this option lessees would not be required to pay headworks for either water or sewer upon development of the site.

It is envisaged they would pay a yearly connected or un-connected network charge as relevant and in accordance with Council’s revenue policy. Where lots are connected, they will also be charged a quarterly usage charge.

Advantages

Encourages development of lessee properties.

Maximises generation of connection and un-connected network charges.

(Could be offset by higher lessee rental charges).

Disadvantages

Does not recoup Council’s infrastructure installation charges.

Does not contribute to the Water and Sewer funds via headworks charges unless an equivalent charge is levied against General Fund and Council is deemed to be the Developer.

Sets an unwanted precedent for Council owned sites that are leased.

2. Apply headworks charges upon development.

Under this option lessees would pay a headworks charge equal to 0.50 equivalent tenement (ET) for the larger sites and 0.25 ET for the smaller sites. A full water ET is valued at $10,981 and a full sewer ET is $15,371 in FY24/25.

It is envisaged that lessees will be charged on a yearly and quarterly basis.

Advantages

Has a short window for Council to recoup infrastructure installation charges.

Maximises generation of connection to network charges.

Is consistent with a ‘user pays’ approach.

Disadvantages

These costs may discourage lessees from proceeding with their development.

The need for lessees to fund headworks charges was not raised during the EOI process and so may cause disgruntlement in EOI respondents.

Community and Stakeholder Engagement

Engagement undertaken

Over the course of the GA Precinct development there has been extensive consultation with all key project stakeholders including existing landside lessees, EOI applicants, specialist aviation firm L&R Airport Consulting and legal representatives.

Engagement planned

Key stakeholders outlined above will be informed of the outcomes of the report. Engagement with potential lessees of the sites will be regular and ongoing until lots are developed.

Financial and Resource Considerations

It is recommended that a budget allocation be reflected in the December quarterly budget review statements with funds to be sourced from the asset renewal reserve.

Item	$ Excl GST
Expenditure Detail
Installation of sewer infrastructure	250,000


Total Expenditure	250,000

Source of Funds
Asset renewal reserves (recommended)	250,000
<grant income\|name of grant>
<reserve funds\|name of reserve
Total income available	0

Total Project Capital Cost	250,000
Total Available Construction Funding
Project Funding Shortfall (unless funds allocated form asset renewal reserve(	-250,000

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts	$ Excl GST
Capital Investment \| New	Approx. 250,000
Annual maintenance and operational costs (noting this is only for the additional infrastructure and not all infrastructure servicing the lots)	12,500 (5% of capital investment)
User charges: Water and Sewer access and use annual income not discounted is approx. $2,000 per lot.	42,000

Legal /Policy

Contributions for water and sewer infrastructure are levied under Section 64 of the Local Government Act 1993. These contributions are detailed in Council’s Development Servicing Plan (prepared in accordance with the Department of Water and Energy Best-Practice Management of Water Supply and Sewerage Guidelines 2007).

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

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

Bega Valley Community Strategic Plan 2040:

B.5. Collaborate with stakeholders to develop and enhance the economic opportunities provided by the Port of Eden, Merimbula Airport, East-West freight corridor, tourism services and facilities.

D.8. Collaborate with relevant parties to grow the passenger numbers through key transport links at Merimbula Airport and Eden Port.

Delivery Program 2022 - 2025:

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

Environment and Climate Change

The new GA precinct has been designed and constructed with future sea level rise and flood modelling prediction.Economic

Merimbula Airport plays a vital role in the local economy, significantly contributing through tourism, recreational use, and business activities. Ensuring a well-functioning and sustainable airport at Merimbula is crucial for supporting the broader Bega Valley economy

Risk

There are significant financial and non-financial risk associated with this report, both in terms of decisions Council makes and the implementation of resolutions.

Risks associated with not installing sewer infrastructure include:

· Ad-hoc and uncontrolled installation potentially leading to poor quality assets.

· Acrimonious relationships developing between lessees and with Council as the landlord as there would not be an even distribution of costs depending on when the lessees develop. This may ultimately lead to reputational damage to Council.

Key risks associated with installing sewer infrastructure include:

· Lessees of the site opt not to connect to the network meaning Council’s investment in infrastructure is not fully utilised.

· Public perception that Council is not being fiscally responsible with additional previously un-budgeted expenditure required to complete capital works.

· Installation of sewer lead times cause delays in executing lease agreements with potential lessees.

Risks associated with application of headwork charges for lessees upon development include:

· Lessees perceive application of network charges to be unfair leading to reputational damage to Council from the GA community.

· Lessees determine that cost of development is prohibitive and decide to withdraw from EOI process.

Risks associated with not applying headworks charges to lessees include:

· The broader community interpret Council being lenient to a small segment of the community and not following Council’s policy leading to potential reputation damage

Social / Cultural

Merimbula Airport is vital to the Bega Valley from both social and cultural perspectives. It currently supports recreational use, which is expected to grow with the increased occupancy of the new GA precinct, as well as flight training. Additionally, the airport is crucial for our community, providing aeromedical services, disaster response, and facilitating education and health-related travel.

Attachments

Nil

Council 16 October 2024

Item 10.1

10.1. Merimbula Airport tenure arrangements

This report relates to existing and new tenure arrangements at Merimbula Airport and seeks Council approval to grant further tenure arrangements.

Director Business & Governance

Officer’s Recommendation

1. That Council receive and note this report and the Confidential Report attached.

2. That Council provides in principle support to retain the building on the existing lease site LS 11 subject to a new lease agreement being entered into with Sapphire Coast Autos PTY LTD prior to any final lease date with Merimbula Aircraft Maintenance Pty Ltd for their occupation of the site.

3. That Council provides in principle support and delegates to the Chief Executive Officer and Mayor the authority to execute the necessary lease documentation, granting a 20-year land only tenure to Sapphire Coast Autos PTY LTD for the occupation of existing lease site LS 11 at Merimbula Airport for a commencing annual rental of $20.00 per m² plus GST, with an annual CPI increase, for the purposes of operating a car hire business and office space.

4. That Council notes the land-only lease will be granted to Sapphire Coast Autos PTY LTD following independent commercial negotiations with the existing lessee and, the lease will include appropriate conditions related to projected inundation risk and the potential need for Council to take possession of part of lease site LS 11 if necessary to manage traffic flow in the area.

5. That Council delegates to the Chief Executive Officer and Mayor the authority to execute the necessary lease documentation, granting a 20-year land only tenure to Merimbula Aircraft Maintenance Pty Ltd for lease site 10 within the new General Aviation precinct for a commencing annual rental of $20.00 per m² plus GST, with an annual CPI increase, for the purposes of operating an aircraft maintenance business.

6. That Council delegates to the Chief Executive Officer and Mayor the authority to execute the necessary licence documentation, granting a 20-year non-exclusive licence to Merimbula Aircraft Maintenance Pty Ltd for the taxiway between lease sites 10 and 11 for a rate of $5.00 per m² plus GST with an annual CPI increase.

7. That Council adopts the recommendation in the Confidential Memorandum (attachment 4 to this report) regarding the allocation of a land lease site for fuel depot purposes.

8. That Council delegates to the Chief Executive Officer and Mayor the authority to execute the necessary lease documentation, granting 20-year land only tenure arrangements to remaining successful tenderers for a rate of $20.00 per m² for lease sites with the new General Aviation Precinct.

9. That Council delegates to the Chief Executive Officer and Mayor the authority to execute the necessary licence documentation, granting 20-year non-exclusive licence agreements to successful tenderers for apron space in front of lease sites 10, 12–14 within the new General Aviation Precinct for a rate of $5.00 per m² plus GST with an annual CPI increase.

Executive Summary

The purpose of this report is to determine a pathway forward for future landside tenure arrangements both within the new General Aviation (GA) Precinct and for an extension of tenure for existing lease site LS 11 at Merimbula Airport.

The report details negotiations with applicants from the Expression of Interest (EOI 2223-043) and existing Merimbula Airport landside lessees since the Council meeting on 20 March 2024.

Background

Council resolved at its Ordinary Meeting of 20 March 2024, when considering existing and new tenure arrangements at Merimbula Airport as follows:

9.4 Merimbula Airport tenure arrangements

1. That Council note it has not resolved to evict LS 11 Merimbula Aircraft Maintenance from the Merimbula Airport.

2. That Council commits to providing letters of support for aviation related businesses intending to seek grant funding to support relocation or establishment of their businesses within the Merimbula Airport General Aviation Precinct.

3. That Council note there is provision in existing Merimbula Airport landside leases allowing a maximum period of twelve months holding over under the same terms and conditions on a monthly tenancy arrangement which the Chief Executive Officer will enact for the following leases:

a. LS 01 Bakersair

b. LS 02 Sapphire Coast Autos PTY LTD

c. LS 03 Merimbula Air Services

d. LS 06 Aviation ID

e. LS 08 Burke, Done, Newman and Patten

f. LS 11 Merimbula Aircraft Maintenance

g. LS 07 John Moffatt

4. That Council reinforces the previously resolved position to end the following leases on 30 June 2024 with the intent these sites be converted to car parking:

a. LS 04 Executive Charter Flights, including the sub-lease to Squizzy’s Tyre and Auto Centre

b. LS 09 Burke Family Trust

5. That Council delegate to the Chief Executive Officer and Mayor to execute the necessary lease documentation to provide further tenure of 1 year on the same terms and conditions as existing lease arrangements from 1 July 2025 to 30 June 2026 with the following lessees:

a. LS 01 Bakersair

b. LS 02 Sapphire Coast Autos PTY LTD

c. LS 03 Merimbula Air Services

d. LS 06 Aviation ID

e. LS 08 Burke, Done, Newman and Patten

f. LS 11 Merimbula Aircraft Maintenance

6. That council staff inform the shortlisted EOI respondents of council’s suggested site allocation and expected lease payments in line with the confidential memo recommendations on allocations and lease rates excluding consideration of MAM which was dealt with separately and considered as part of item 13.1 in this business paper to gauge interest and get feedback from applicants to ensure the sites are appropriate or if they would prefer alternative sites and report back to council.

7. That council adopt points 1-3 in the confidential attachment only.

13.1 Offer to relocate Merimbula Aircraft Maintenance

That council staff:

1. Confirm with MAM the appropriateness of site 11 at the new GA precinct for their operation

2. Negotiate annual lease conditions with MAM for a replacement maintenance facility in the new GA precinct, which might include a build-to-rent model, with details reported back to council for consideration

3. Allocate funds from the internal property development reserve to finance planning of the project

4. Note MAM will be offered a renewed contract to stay in their existing facility until the replacement one is complete.

Following the Resolution of Council, officers have completed the following actions:

· 4 April 2024 formal letters sent to lessees outlining details of resolutions from 20 March 2024 meeting

· 22 March 2024 letters sent to lessees enacting clause 14 of existing leases to hold over until 30 June 2025

· 4 April 2024 letters sent to lessees and sub lessees noting the requirement for vacant possession and removal of assets on existing lease site LS 04 and LS 09 by 30 June 2024, LS-04 building demolished and LS 09 vacated. The fence around LS 09 has remained in place and Council officers are currently working to develop a plan to make use of both LS 04 and LS 09 now they are back under Council management

· 30 May 2024 lease extensions issued until 30 June 2026 to the following lessees:

o LS-01 Lot 1 DP 1257793 – Correspondence received on 21 June 2024 confirming they do not wish to enter into a new lease agreement. The current agreement will remain in holding over, terminating on 30 June 2025

o LS-02 Lot 2 DP 1257793 – South Coast Autos fully executed and copy returned for lessees records

o LS-03 Lot 3 DP 1257793 – Awaiting return of executed copy of agreement, follow up email sent 9 September 2024

o LS-06 Lot 6 DP 1257793 - Awaiting return of executed copy of agreement, follow up email sent 9 September 2024

o LS-08 Lot 8 DP 1257793 – Patten, McCooey & Bourke fully executed and copy returned for lessees records

o LS-11 Lot 11 DP 1257793 - Awaiting return of executed copy of agreement, follow up email sent 9 September 2024

· 17 and 19 June 2024 letters sent to all EOI applicants providing formal update.

Additionally, regarding actions from agenda item 13.1, Council Officers met with Merimbula Aircraft Maintenance (MAM) on 6 May 2024 to discuss the suitability of lease site 11 in the new GA precinct. On 29 July 2024, MAM confirmed in writing their preference for lease site 11, while also expressing their openness to consider alternative sites.

Furthermore, a formal letter was sent to Sapphire Coast Autos on 14 May 2024 concerning the potential purchase of the hangar on existing lease site LS 11 at Merimbula Airport. On 27 May 2024, Council officers met with Mr Toovey from Sapphire Coast Autos to address follow-up questions. Mr Toovey informed Council in writing on 25 July 2024 that he remains interested in purchasing the building, and MAM is willing to sell it. However, there is uncertainty about the timeline for the sale due to MAM not having a future site to relocate to. Council officers confirmed the intention to report to the October Council meeting, the first available after the caretaker period, to seek direction on site allocations in the new GA precinct.

Both fuel companies that submitted an EOI were directed to target lease site 10. However, they both found it unworkable due to issues with aircraft access and size. Based on their feedback, they were then advised to target either lease site 11 or 12, or to provide options for both. After their first submission, they were also instructed to address specific issues, including compliance with aviation and dangerous goods legislation.

Council Officers consulted with the specialist aviation firm L&R Airport Consulting to assess truck access to lease site 10 and the allocation of a site for a fuel depot in the new GA precinct. The attached Confidential Report, provides further information and a recommendation regarding the allocation of a land lease site for fuel depot purposes.

Additionally, the following summary identifies the risk in not allocating lease site 11 as the position for a fuel depot.

· The constructed area between lease sites 10 and 11 can be referred to as a taxi lane or an apron. As it does not have a centreline marked, it does not meet the criteria for a taxi lane. Areas between lease sites 10 and 11 and 15 - 20 do not a centreline because, under aviation legislation, a centreline must lead to a parking location. The legislation specifically states that hangars are not classified as parking areas.

· As aircraft cannot be parked on this area, they also do not meet the criteria for apron (they do not have the clearances necessary to allow movement to and from hangars in the presence of parked aircraft).

· The above two points are also why the entrances to these areas have 5,700kg limits line marked (to limit the dimensions of the aircraft in the area, given the space available).

· In 2021, when designing the GA Precinct, Council wrote to the Civil Aviation Safety Authority (CASA) and acknowledged that while these areas as designed are not non-compliant with Part 139 of the Manual of Standards that relate to a Part of the Civil Aviation Safety Regulations, they are also not consistent with the intention of the legislation. However, Council presented a rationale to CASA for moving forward with the design and, most importantly, accepted the operational considerations associated with potential conflicts between hangar tenants. This includes safe operation and appropriate leasing and licencing principles, ensuring that aircraft are only parked on the taxi lane long enough to open hangar doors to allow aircraft to enter or exit.

· The operational considerations include ensuring that the use of these areas is not obstructed when multiple hangars are opening onto them (i.e., by parked aircraft). Pilots are required to make their own way to a parking area, and if there is insufficient clearance (i.e., if a tenant parks their aircraft on these areas in a way that prevents access to a neighbouring hangar), then the pilot can conclude that they do not have enough clearance and can claim that access to their hangar is blocked.

· Lease sites 1a to 9 all have grassed areas in front of them included in the leased lot to allow for aircraft parking. Tenants that seek that capability can be accommodated in these lease lots.

· Regarding lease sites 10 and 11, if there were hangars on both lease areas, Council would have to apply the same operational constraints in this area as it does on lease lots 15 - 20. Even if a parking/access arrangement were to be agreed upon between two tenants and reflected in their leases, there is no guarantee that if one leaves before the other, the same arrangement could be put in place with the next lessee.

· If only lease site 10 or 11 has a hangar (such as when the other site is leased as a fuel depot), part of the taxi lane can be licenced to the hangar site lessee to facilitate aircraft parking on the taxiway. Such a non-exclusive licence over the area would require payment of a proportional rate per m², determined in the Opteon valuation at $5.00 per m², like the arrangement proposed in front of lease sites 12-14. It is also important to note that the taxi lane must be clear at times for vehicular access to the airside from the internal road. Any agreement with the lessees must ensure that the taxi lane is cleared of all aircraft on demand by the airport manager and remains clear whenever the lease area is unattended by a pilot capable of moving the aircraft.

For all the above reasons, Council officers recommend allocating lease site 11 to a fuel company, which would mean there will only be one hangar facing the taxiway between lease sites 10 and 11. This allows for the establishment of a non-exclusive licence arrangement with the lessee of lease site 10. Therefore, Council officers have recommended that Merimbula Aircraft Maintenance Pty Ltd be allocated lease site 10 and a non-exclusive licence over part of the taxiway between lease sites 10 and 11.

A blueprint of a building

Description automatically generated

Figure 1: Draft GA Precinct lease plan. Note draft plan to be updated to include proposed licence areas adjoining lease sites 10, 12 – 14 and water, sewer and stormwater infrastructure within the identified lot boundaries.

Options

There are several options available to Council regarding this report, including the treatment of the apron space in front of lease sites 10 and 12-14 within the new GA Precinct. One option is to include this space within the lease parcel and charge a rate of $20.00 per m². Council officers consulted with external aviation legal representatives and confirm that airports typically use a licence arrangement for apron areas, as these areas are often shared by multiple tenants as a consistent approach. A licence arrangement also facilitates Council’s maintenance of the apron. Each party is granted a non-exclusive licence to use the area. However, there is no legal reason why the apron areas in front of each parcel cannot be included as part of the leased land.

Community and Stakeholder Engagement

Engagement undertaken

As outlined under the background section of this report there has been extensive consultation with existing landside lessees, EOI applicants, specialist aviation firm L&R Airport Consulting and legal representatives since the Council resolution on 20 March 2024.

Engagement planned

Engagement will continue with existing landside lessees, EOI applicants, specialist aviation firm L&R Airport Consulting and legal representatives following the outcomes of this report.

Financial and Resource Considerations

As outlined in the attached report from the Council meeting on 20 March 2024, Council commissioned a commercial market rental assessment from Opteon Valuers in September 2022. This assessment forms the basis for the $20.00 per m² rate applied to lease sites and the $5.00 per m² rate applied to licence areas within the new GA Precinct as agreed at the Council meeting on 20 March 2024.

Legal /Policy

A lease enables exclusive use over land for a specified term and purpose and 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 uses are proposed, and major financial outlay is required.

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

The Registrar-General’s Guidelines require lease sites to be defined in a deposited plan if total term is of more than five years. For this reason, Council is required to subdivide the site for lease purposes and a development application has been granted for this purpose and subdivision certificate application has been lodged and is currently under assessment. Once issued the plan of subdivision for lease purposes will be lodged at NSW LRS.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Bega Valley Community Strategic Plan 2040:

B.5. Collaborate with stakeholders to develop and enhance the economic opportunities provided by the Port of Eden, Merimbula Airport, East-West freight corridor, tourism services and facilities.

D.8. Collaborate with relevant parties to grow the passenger numbers through key transport links at Merimbula Airport and Eden Port.

Delivery Program 2022 - 2025:

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

Environment and Climate Change

The new GA precinct has been designed and constructed with future sea level rise and flood modelling predictions in mind, unlike the existing lease sites, which did not account for these factors when originally constructed.

Economic

Risk

There are significant financial and non-financial risks associated with this report, both in terms of the decisions Council makes and the implementation of resolutions. The Independent Commission Against Corruption (ICAC) provides guidance on ‘Direct Negotiations: Guidelines for Managing Risk’. As Council continues to navigate the process of resolving tenure arrangements, it is crucial to comply with relevant legislation and guidance to avoid any impropriety. This includes adhering to approved delegations from Council when undertaking negotiations and interactions with existing and potential tenants.

Council is also responsible both as the aerodrome owner and as the Aerodrome Certificate Holder to ensure the safe operation of the aerodrome and compliance with aviation legislation and must ensure that lease arrangements facilitate meeting this responsibility.

Social / Cultural

Attachments

1 ⇩. Council report dated 22 March 2023 - EOI 2223-043 Merimbula Airport General Aviation Precinct land leases

2 ⇩. Council report dated 20 March 2024 - Airport tenure arrangements

3 . Confidential attachment from 20 March 2024 meeting - Merimbula Airport tenure arrangements (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.

4 . Confidential Memorandum to councillors regarding allocation of land lease site for fuel depot purposes (Confidential - As this attachment contains information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business as per Section 10A(2)(c) of the Local Government Act 1993.

Council 16 October 2024

Item 10.2

10.2. Refer Financial Statements for Audit

Each year the Local Government Act 1993 requires Council to refer the annual financial statements to the auditors.

Director Business & Governance

Officer’s Recommendation

Council resolve:

1. That Council’s General Purpose Financial Report is prepared in accordance with:

a) The Local Government Act 1993 (as amended) and the Regulations made thereunder; and

b) The Australian Accounting Standards and professional pronouncements; and

c) The Local Government Code of Accounting Practice and Financial Reporting; and

d) Presenting fairly the Council’s operating result and financial position for the year; and

e) Council’s accounting and other records.

2. That Council’s Special Purpose Financial Reports are prepared in accordance with:

a) NSW Government Policy Statement “Application of National Competition Policy to Local Government”; and

b) Office of Local Government Guidelines “Pricing and Costing for Council Businesses: A Guide to Competitive Neutrality”; and

c) The Local Government Code of Accounting Practice and Financial Reporting; and

d) The Department of Water and Energy Best Practice Management of Water Supply and Sewerage Guidelines.

e) Presenting fairly the operating result and financial position for each of Council’s declared Business Activities for the year; and

f) Council’s accounting and other records.

3. That the signatories be required to confirm they are not aware of any matter that would render the reports false or misleading in any way and include such information in the statement.

4. That Council authorises the Mayor, Deputy Mayor, Chief Executive Officer and the Responsible Accounting Officer to execute the statement required by Section 413(2)(c) of the Local Government Act 1993.

5. That Council endorses the referral of General Purpose Financial Report and Special Purpose Financial Reports to Council’s Auditor for audit.

Executive Summary

Council is legally required to refer its statements to audit. The purpose of this report is to meet the requirements under the Local Government Act and to meet directions issued by the Office of Local Government (OLG). This is not an approval of the 2024 financial reports, rather it is a process where the financial reports are prepared for, and audited by, independent entities.

Background

In accordance with Section 413 of the Local Government Act 1993 (the Act) Council must “refer to audit” the Financial Reports for the financial year ending 30 June 2024. It outlines that Council must refer its Financial Reports to audit prior to them being audited and advises Council must make a statement in the approved form as to its opinion on the preparation of the General Purpose Financial Report (and by extension the Special Purpose Financial Report).

Financial statements are a source of information that can assist Councillors and the public to understand the financial situation of a Council. This includes an assessment of the end of financial year results with the Office of Local Government benchmarks for various indicators that assess financial sustainability.

The key statements attached to this report include:

· Income Statement

· Statement of Comprehensive Income

· Statement of Financial Position

· Statement of Changes in Equity

· Statement of Cash Flows

During the financial year (FY2024), council made a conscious effort to deliver services in the most effective way and made budget adjustments across many services to improve the cash position of Council. Identifying and implementing process efficiencies has been a key strategy in our financial improvement plan supported by the organisation prioritising delivery of projects and services funded by grants.

Councils FY2024 Operational Plan had an anticipated budget deficit of $1,830,000. During the financial year Council has reviewed and made changes to this budget quarterly. Council’s final result at 30 June 2024 was a surplus of $2,138,000.

Financial year 2024 results reflect a significant level of grant funding that Council received, including the disaster recovery funding agreement (DRFA) and the financial assistance grant prepayment. These impacts are evident by the level of own source revenue ratio of 58.35%, and a result that sees us perform below the OLG benchmark of 60.00%. The importance of this indicator is that Council cannot continue to rely on grant funding to deliver operational and capital projects and therefore from a financial sustainability perspective, council must plan to deliver services and maintain our community assets in a way that does not rely on funding from the NSW and Australian government. With this in mind, a focus has been to develop various scenarios to progress our intent to fund operations from own source revenue in the Long Term Financial Plan (LTFP) adopted by council in June 2024.

Councils cash and cash equivalents increased by $28,124,000 to $139,777,000 including external restrictions (unexpended grants, developer contributions, water and sewer cash & cash equivalents) of $106,264,000. the remaining cash of $33,513,000 is sufficient to cover Councils internal restrictions of $30,383,670.

In accordance with the Code of Accounting Practice, Council is responsible for management of internal allocations via resolution. These internal allocations are at the discretion of council and therefore staff may recommend that Council resolve to release the funds at times of reduced cash and increased debtors. For 30 June 2024 this is not required. The cash and cash equivalent Note C1 to the financial statements has been attached to this report for information.

The Officer’s recommendation provides the necessary authority for the Mayor, Deputy Mayor, Chief Executive Officer and Responsible Accounting Officer to complete the General Purpose and Special Purpose Financial Reports after audit.

Options

Adoption of the recommendation ensures Council complies with end of financial year reporting requirements of the Local Government Act.

Community Engagement

Consultation Planned

A formal presentation of the audited financial statements will be made as an open report to the public session as soon as they are received from the auditor. The external auditors also present findings to the Bega Valley Shire Council Audit, Risk and Improvement Committee.

Council consideration of input

After Council has finalised its audited financial statements, Councillors will be provided with a workshop on the final results in detail. Following completion of the audit there will be a public address from both external auditors Crowe and the NSW Audit Office.

Financial and resource considerations

The financial reports represent a summary of the financial result of Council operations for FY2024. The recommendations in this report do not represent Council's approval of the FY2024 financial reports.

There is an annual operational budget allocation for the preparation of financial reports and independent audit.

Funding source		Amount
General Fund Budget \| Audit Services Financial Reports	$	110,000
Budget adjustment	$	-
Total Budget required	$	110,000

Legal /Policy

In accordance with Section 413 of the Local Government Act 1993, Council must “refer to audit” the Financial Reports for the financial year ending 30 June 2024.

The financial statements are prepared in accordance with the Act, the regulations thereunder, Australian Accounting Standards and professional pronouncements and the Local Government Code of Accounting Practice and Financial Reporting.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

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 Core business: Preparation of compliant financial reports including audited annual accounts.

Environmental / Sustainability

The audited financial results at 30 June 2024 provide information on Councils financial sustainability. The benchmarks are defined in the “OLG’s performance indicators from the audited financial statement”.

Economic

Council is a major contributor to the local and regional economy. Assessment of financial performance is a key input of decision making, with the goal of ensuring a financially responsible and effective organisation.

The financial statements provide an opportunity to assess actual performance against strategic plans and highlight any challenges of unexpected events that may have impacted the final results.

Risk

This report minimises the risk of non-compliance with the Local Government Act 1993.

Despite there being no requirement to report the balances of externally restricted reserves, internally restricted reserves and unrestricted reserves, Council has continued to include this information in our financial reports for accountability and transparency.

Social / Cultural

Reporting financial performance in a timely manner meets legislative requirements and builds confidence in the management and leadership of the Council. Benchmarking against similar Councils (Category 4) allows for context in the local government environment.

Financial decisions impact the social and cultural aspects of Council’s operations in the community. The key financial statements attached provide an annual summary of the impact of those decisions at a point in time; that being, the end of financial year (30 June 2024) and inform future direction and financial strategies that support delivery of community assets and services.

Attachments

1 ⇩. FY2024 Financial Statements - Primary Statements

2 ⇩. FY2024 Financial Statements - Note C1-3 Restricted and allocated cash, cash equivalents and investments

Council 16 October 2024

Item 10.3

10.3. Proposed telecommunication lease - Lawrence Park, Tathra

This report seeks Council approval to enter into commercial negotiations with NSW Telco Authority and its representative, Ventia, regarding a land lease on part Lot 1 DP 1125988 at Lawrence Park, Tathra as part of the Critical Communications Enhancement Program.

Director Business & Governance

Officer’s Recommendation

1. That Council receive and note the report.

2. That subject to the NSW Telco Authority making its own enquiries in relation to development approval for the proposed use of the land, Council approves tenure of five-years to the NSW Telco Authority for a lease of part Lot 1 DP 1125988 at Lawrence Park, Tathra for an annual market rental as determined by a registered Valuer.

3. That the NSW Telco Authority will be responsible for covering all costs incurred by Council or its legal representatives related to the preparation and registration of the lease.

4. That Council authorises the Chief Executive Officer and Mayor to execute all necessary documentation to provide the tenure.

Executive Summary

The NSW Telco Authority (NSWTA) and its representative, Ventia, have requested Council approval to lease part of Lot 1 DP 1125988 at Lawrence Park, Tathra. This lease is for the installation of a 25-metre pole, an equipment shelter, and a fenced compound as part of the NSW-wide Critical Communications Enhancement Program (CCEP).

The NSWTA has proposed a lease term of five years to avoid the need for subdivision for lease purposes. Consequently, any lease agreement will need to include provisions for the removal and remediation of the land following the lease’s expiry.

Background

The NSWTA is seeking Council approval to instal a 25-metre pole, equipment shelter and fenced compound to house the pole and shelter on part Lot 1 DP 1125988 at Lawrence Park, Tathra. The proposal is part of the CCEP to expand and enhance the public safety network to improve critical communications for emergency services organisations and is being delivered by the NSWTA.

NSWTA is the determining authority for this proposal under Part 5 of the Environmental Planning and Assessment Act 1979 (NSW) and works associated with the CCEP will be categorised as development permitted without consent under clause 2.141(1) of the State Environmental Planning Policy (Transport and Infrastructure) 2021 (NSW).

Lot 1 DP 1125988 is Council-owned community land. Consequently, a lease exceeding five years would necessitate a separate development application for subdivision for lease purposes. Therefore, the NSWTA has requested a lease term of only five years.

A parking lot with trees and a person walking

Description automatically generated

Figure 1: Locations within Lot 1 DP 1125988 proposed by NSWTA for the installation of a 25 metre pole, equipment shelter, and fenced compound. After consulting with site users, location 2, the upper car parking area, was determined to be the most suitable, as location 1 is used as a warm-up field.

Options

The options available to Council are:

1. Accept the recommendation provided by Council officers to grant tenure to the NSWTA for occupation of part Lot 1 DP 1125988 at Lawrence Park, Tathra and resolve accordingly.

2. Maintain vacant possession of Lot 1 DP 1125988 at Lawrence Park, Tathra for Council purposes. Noting the powers and immunities under the Telecommunications Act 1997 and the Telecommunications Code of Practice 2018.

Community and Stakeholder Engagement

Engagement undertaken

Council officers have had ongoing engagement with the NSWTA and its representative, Ventia, regarding the proposal. Lawrence Park Sporting group users have also been consulted and Council officers have advised written approval to the proposed co-location is required before progressing further.

Due to the classification of Lot 1 DP 1125988 Council officers have also explored alternative site locations around Tathra on Council owned operational land. These sites were explored further by the NSWTA and it was confirmed that none would be suitable due to reasons listed in the table below:

Candidate

Candidate details

Lot 1 DP1125988

Car park overflow area at Lawrence Park, off Bega Street, TATHRA NSW 2550

Proposed (prime) candidate.

Greenfield site – installation of a 25m pole and equipment shelter within a new fenced compound.

Optional pole colour consultation to mitigate any visual impacts and make the slimline pole fit in with the existing trees. Lease over five years requires subdivision and survey work.

Lot 1 DP502253

RFS site

146 Bega Street, TATHRA NSW 2550

Greenfield site – installation of a 35m pole and equipment shelter within a new fenced compound.

Discounted due to insufficient space, expected impacts to underground services, and the removal of trees up to 30m tall to allow for an Asset Protection Zone. This site would be visually intrusive to surrounding residents.

Lot 285 DP715723

Water Reservoir

Tathra Bermagui Road, MOGAREEKA NSW 2550

Unsuitable as it is located too far north and would not meet emergency services network coverage requirements along the Wild Horse Bay coastline to the south.

Lot 253 DP715722

Water Reservoir

Thompson Drive, TATHRA NSW 2550

Unsuitable as it does not meet emergency services coverage requirements.

It is also discounted due to expected impacts to underground services and limited space restrictions caused by a power easement.

Engagement planned

In accordance with section 47A(2) of the Local Government Act 1993 (NSW), Council officers must complete the following for leases of community land with a term of five years or less:

(a) the proposal must be notified and exhibited in the manner prescribed by section 47, and

(b) the provisions of section 47(3) and (4) apply to the proposal, and

(c) on receipt by the council of a written request from the Minister, the proposal is to be referred to the Minister, who is to determine whether or not the provisions of section 47(5)–(9) are to apply to the proposal.

(3) If the Minister, under subsection (2)(c), determines that the provisions of section 47(5)–(9) are to apply to the proposal—

(a) the council, the Minister and the Director of Planning are to deal with the proposal in accordance with the provisions of section 47(1)–(8), and

(b) section 47(9) has effect with respect to the Minister’s consent.

Financial and Resource Considerations

For all Council-owned properties, a market rental valuation shall be applicable. Council officers will be required to conduct a request for quotation process and engaged a registered valuer to prepare a market rental valuation for the lease which NSWTA will be required to fund.

NSWTA will also be responsible for payment of the costs of Council or its legal representatives in relation to the preparation of the lease. Such costs shall include all work completed in addition to the initial preparation of the document should amendments be required, or further negotiations necessitated.

Council officer time has been required to consult with the NSWTA and its representative, Ventia, as well as the site users regarding the requirement for a lease agreement. Ongoing management of the lease during the term will also need Council officer resources as required.

Legal /Policy

Lot 1 DP 1125988 is Council-owned community land zoned RE1 - Public Recreation under the Bega Valley Local Environmental Plan 2013.

Council officers consulted with a registered surveyor regarding a lease of part Lot 1 DP 1125988 for the proposed Emergency Services Radio Facility for over five years and reviewed the Registrar Generals guidelines, the survey plan requirements for a lease over 5 years require:

1. A Plan of Subdivision creating a new lot over the area required for the facility

2. All usual survey requirements in terms of:

a. Marking boundaries,

b. Connecting to state control (MGA) and

c. Preparing the final plan ready for a subdivision certificate.

The registered surveyor advised fees are dependent on what existing survey marks can be found in the area to help define the current Lot 1 boundaries. However, as an estimate, the surveyor advised around $6,100 excluding GST.

A lease of land with a total term of five years or less can be registered without needing a plan of subdivision under section 23G(d) of the Conveyancing Act 1919 (NSW). However, according to the Registrar General’s requirements, if only part of the land is to be leased and the term exceeds three years, a survey plan must be attached to the lease. The NSWTA will need to engage a registered surveyor to prepare the required plan and cover all costs associated with its preparation and lodgement at NSW Land Registry Services.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Delivery Program 2022 - 2025: E5.5 - Develop and manage Council’s owned and managed land portfolio.

Environment and Climate Change

There is no environment and climate change matters associated with the proposed granting of a lease. As mentioned under the background section of this report the NSWTA will determine this proposal under Part 5 of the Environmental Planning and Assessment Act 1979 (NSW).

Economic

The lease provides economic benefits to both Council and the community. The annual rental income will help fund maintenance and upkeep of community land, particularly Lawrence Park in Tathra. Further economic impacts related to this report are discussed in the finance section.

Risk

Regulatory and statutory compliance is defined as a strategic risk for Council. The issue of rising administrative complexity and cost of continuous change with increasing and competing statutory and regulatory compliance regimes remains an ongoing challenge for Council.

Ensuring occupation of Council-owned community land is authorised by way of a formal tenure arrangement that contains the appropriate indemnity and insurance clauses necessary to reduce risks associated with regulatory and statutory compliance with legislation is a key risk control for Council.

Social / Cultural

The CCEP will expand and enhance the public safety network to improve critical communications for emergency services organisations.

Attachments

Nil

Council 16 October 2024

Item 10.4

10.4. Expression of interest for use of Council owned and managed reserves

Council approval is being sought to commence a formal Expression of Interest (EOI) process for the use of Council owned and managed reserves throughout the shire for the purpose of mobile food vending during the peak summer trading period.

Director Business & Governance

Officer’s Recommendation

1. That Council receive and note the report.

2. That a public Expression of Interest process be progressed via public tender for the use of Council owned and managed land reserves.

3. That the results of the Expression of Interest process be presented back to Council for consideration.

Executive Summary

Council officers have conducted an extensive review of Council owned and managed land for the purpose of identifying prime mobile food vending sites throughout the shire to support Council’s Policy 4.15 Use of Public Land (Local Approvals).

Council approval is being sought to commence a formal Expression of Interest (EOI) process for the use of Council owned and managed reserves throughout the shire for mobile food vending during the peak summer trading period. The EOI process has been determined as the best method for identifying suitably qualified commercial entities while maintaining transparency and avoiding any suggestion of impropriety.

Background

Council resolved at the ordinary meeting of 16 November 2022 to progress several licence agreements for the use of Council reserves for the purpose of mobile food vending following an EOI process. Authority was delegated to the Chief Executive Officer to enter into short term licence agreements with suitably qualified commercial entities or incorporated organisations for up to 12 months until 30 June 2025.

To date, there have not been designated sites for mobile food vending and proposed locations are assessed on a case-by-case basis as applications come in, which is time-consuming for Council officers. Although the intention was to include prime site mapping for mobile food vending in Council’s Policy 4.15 Use of Public Land (Local Approvals), this work had not been complete in time for the policy’s adoption.

To meet the increased demand for mobile food vending and finalise Council’s Policy 4.15 Use of Public Land, officers have conducted an extensive review of Council owned and managed land for the purpose of identifying prime mobile food vending sites throughout the shire which will streamline the licencing process.

Over 100 land parcels of land have been inspected and assessed for their viability as mobile food vending sites with key considerations being accessibility, parking, safety, power connection, water access, surrounding amenities, and proximity to houses and other food businesses. A copy of the table outlining each of the evaluated parcels of land, and their suitability has been attached to this report for the information of councillors.

From the review, the following prime sites have been identified and are shown in green in the attached table:

• Kianinny Bay, Tathra (Lot 255-256 DP 729166)

• Jim Preo Reserve, Mogareeka (Lot 7008 DP 1057483)

• Merimbula Boat Ramp (Lot 2 DP 221261)

• Lions Beach, Pambula (Lot 7019 DP 1122193)

• Lions Park, Bega (Lot 30 DP 36378)

• Quarantine Bay, Eden (Lot 85 DP 750205)

• Cocora Beach, Eden (Lot 7010 DP 1071231)

• Bermagui Point (Lot 7061 DP 1118744)

• Short Point, Merimbula (Lot 488 DP 729229)

• Spencer Park, Merimbula (Lot 49 DP 750227)

• Mitchie’s Jetty, Merimbula (Lot 7315 DP 1165045)

Council officers are seeking formal approval to conduct an EOI process for available prime sites for the purpose of mobile food vending during the peak summer trading period. The attached presentation will be included with the EOI documentation to outline the features and amenities of each site for applicants. It is noted that the Merimbula locations of Short Point, Spencer Park and Mitchie’s Jetty are all currently licenced and will not be included in the EOI until after 30 June 2025. In addition, Bega Local Aboriginal Land Council have an existing licence to operate a mobile coffee cart at Tathra Lions Park which expires on 31 January 2025. As Jim Preo Reserve at Mogareeka has been identified as the prime site due to its flat terrain, easy access, amenities, and lack of traffic or parking impediments, there will not be an option to renew a licence agreement for Tathra Lions Park. This has been communicated to Bega Local Aboriginal Land Council and they are encouraged to apply for an alternate prime site should they wish to continue trading.

In the submissions, applicants will be asked to specify the site/s they would like to be considered for in their submission and successful applicants will be required to enter into a temporary licence agreement with Council to formalise their use of the land.

Applicants will be required to operate in accordance with Council’s Policy 4.15 Use of Public Land (Local Approvals) and a separate Use of Public Land (UPL) approval will be required.

Council officers intend to grant successful EOI applicants a 6-month temporary licence agreement with a proposed licence term of 16 December 2024 – 15 June 2025 to align with the resolution of 16 November 2022. Following the completion of this licence period, a further EOI process will be conducted for the use of Council reserves which will include all identified prime sites.

Options

The main options considered and presented by responsible officers for consideration by Council are as follows:

1. Recommended. Council officers commence an EOI process via public tender. This option will maximise and ensure the use of Council owned and managed reserves by third party commercial operators is appropriately managed.

2. Continue with the current approach of accepting ad hoc applications for the use of Council owned and managed reserves until a new EOI process is conducted after 30 June 2025. However, this option is not recommended due to the resource demands of handling ad hoc applications. Additionally, Council has received enquiries from two separate operators wanting to license the same location, and there is currently no transparent method to resolve this conflict without running an EOI process. Not recommended.

Community and Stakeholder Engagement

Engagement undertaken

Council officers have consulted with internal operational teams seeking advice and endorsement. The teams consulted include:

• Parks and Recreation

• Ranger Services

• Environmental Health

• Waste Services

The list of prime sites provided in this report represents the consensus.

Engagement planned

Council officers will commence the EOI process via public tender (VendorPanel) and advertise the EOI on Council’s website and social media pages.

Officers will liaise with applicants regarding their submissions where needed.

Financial and Resource Considerations

Council Crown land managers are required to ensure all monies received from the use of community land is directed to maintaining and sustaining long-term use and enjoyment of the reserve/s.

The income generated from leasing and licencing is a primary form of funding for a Crown land manager. It allows Council as Crown land manager to cover long-term running costs (at a minimum) and invest over the long term for future generations to use and enjoy the Crown land in the community.

It is proposed that each of the licence agreements be based on the fees adopted in Council’s fees and charges schedule as follows:

• Mobile Food Vending – Prime site connecting to power (annual) - $4,000

• Mobile Food Vending – Prime site connecting to power (6 Months) - $3,000

• Mobile Food Vending – Prime site connecting to power (3 Months) - $2,000

• Mobile Food Vending – Prime Site – unpowered (annual) - $3,500

• Mobile Food Vending – Prime Site - unpowered (6 Months) - $2,650

• Mobile Food Vending – Prime Site - unpowered (3 Months) - $1,750

Additionally, each applicant will be required to pay a UPL application processing fee of $124 to obtain a current UPL approval, unless they already have an existing approval.

Officers are requesting that proof of mobile food van registration is provided as part of the EOI process. If applicants do not have an existing registration, a fee of $250 is applicable which includes one inspection of the mobile food van.

Legal /Policy

In line with Independent Commission Against Corruption (ICAC) Guidelines, to maintain transparency and avoid any suggestion of impropriety, Council officers recommended that an EOI process is conducted.

Under the Crown Land Management Act 2016 (CLM Act), Council Crown land managers (CLMs) can generally administer Crown land under the public land provisions of the Local Government Act 1993 (LG Act) and this includes leases and licences.

For all Crown land that is classified as community land, Council is required to have an adopted plan of management (PoM) in place. Under the LG Act, leases, licences and other estates can only be issued on land that is classified as community land where an expressed authorisation is provided in an adopted PoM.

Prior to the adoption of a PoM for Crown land, Council CLMs can grant leases and licences in certain circumstances, as set out in clause 70 of the Crown Land Management Regulation 2018 (CLM Regulation). Under the CLM regulation, short term licences under section 2.20 of the CLM Act can be granted for up to 12 months without minister’s consent and without the requirement to give public notice of the proposed lease or licence in accordance with section 47 of the LG Act. For any proposed licences on land that is owned by Council and classified as community land, Section 47 of the LG Act will still apply.

Council’s Policy 4.15 Use of Public Land (Local Approvals) authorises short term uses of Council owned and managed Crown Land for many purposes including mobile food vending, however a licence to occupy the site is required. As such, each of the proposed licence agreements will be dealt with under the LG Act and CLM Act and in accordance with Council’s Management of Leases and Licenses Procedure and Council’s Policy 4.15 Use of Public Land (Local Approvals).

Council officers expect to complete the review of Policy 4.15 on the Use of Public Land (Local Approvals), including the addition of mobile food vending sites mapping, ready for public consultation, before presenting the results of the EOI process back to the Council for consideration.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Delivery Program 2022 - 2025: E5.5 - Develop and manage Council’s owned and managed land portfolio.

EOI’s are proposed to be evaluated on the following criteria:

Criteria	Weighting
Economic activity, made up as follows:
Demonstrate how the activity will generate local economic activity and supply for local business.	10%
Demonstrate how the activity will attract external visitation to the area.	10%
Demonstrate how the activity will enhance the enjoyment for reserve users.	10%
Other benefits to the community, made up as follows:
Demonstrate what other benefits the community will receive from the activity.	30%
Experience and qualifications, made up as follows:
Demonstrated previous experience in the proposed activity.	20%
Evidence of appropriate accreditation and/or qualifications supplied.	10%
Sustainability, made up as follows:
Demonstrate how any waste generated by the commercial activity will be managed, collected and removed from the site	10%

Environment and Climate Change

There are no environment and climate change matters associated with the recommendations of this report. Economic

Each EOI submission will provide a level of economic activity or benefit to the community.

Risk

Regulatory and statutory compliance and workforce and public safety are defined as strategic risks for Council. The issue of rising administrative complexity and cost of continuous change with increasing and competing statutory and regulatory compliance regimes remains an ongoing challenge for Council. This risk is mitigated by ensuring the occupation of Council owned and managed reserves by third parties is authorised by way of a formal tenure arrangement that contains the appropriate indemnity and insurance clauses.

The issue of licence agreements may affect native title, however, complies 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

Licencing mobile food vendors on Council-owned and managed land can have significant social and cultural benefits. Providing opportunities for social interaction, bringing people together in public spaces and fostering a sense of community. Additionally, mobile food vendors can support local economies by providing business opportunities for small entrepreneurs and creating jobs.

Attachments

1 ⇩. Mobile Food Vending - Prime Site Identification EOI presentation

2 ⇩. Comprehensive table of all owned and managed land investigated

Council 16 October 2024

Item 10.7

10.7. Gift Register - September 2023 to August 2024

Council’s Code of Conduct requires Council to annually report on activities recorded in the Gift Register.

Director Business & Governance

Officer’s Recommendation

That Council receive and note the gift register activities between 1 September 2023 and 31 August 2024.

Executive Summary

Council’s code of conduct requires councillors and council officers to declare any token gifts or benefits offered during the course of their work and activities for Council. Gifts and benefits must be declared in the register whether they are accepted or declined.

The register is maintained in Council’s pulse system. A copy of declarations made over the period 1 September 2023 to 31 August 2024 is attached.

Background

It is a requirement of the Office of Local Government (OLG) for all Councils to have a gift register and for this register to be available for inspection.

Options

There are no options for this receive and note report.

Community and Stakeholder Engagement

Engagement undertaken

Council’s code of conduct as well as the gifts and benefits procedure provide guidance to staff on how to manage offers of gifts and benefits. Reminders about the management of gifts and benefits are provided information in governance updates from the Chief Executive Officer (CEO).

Engagement planned

There is no engagement required for this receive and note recommendation.

Financial and Resource Considerations

Management of Council’s gifts and benefits register is included in the operational budget for the governance service as a core requirement.

Legal /Policy

An extract of the Council’s code of conduct is provided below.

Part 6 Personal Benefit

6.1 For the purposes of this Part, a gift or a benefit is something offered to or received by a council official or someone personally associated with them for their personal use and enjoyment.

6.2 A reference to a gift or benefit in this Part does not include:

a) a political donation for the purposes of the Electoral Funding Act 2018

b) a gift provided to the council as part of a cultural exchange or sister-city relationship that is not converted for the personal use or enjoyment of any individual council official or someone personally associated with them.

c) attendance by a council official at a work-related event or function for the purposes of performing their official duties, or

d) free or subsidised meals, beverages or refreshments of token value provided to council officials in conjunction with the performance of their official duties such as, but not limited to:

i) the discussion of official business

ii) work-related events such as council-sponsored or community events, training, education sessions or workshops

iii) conferences

iv) council functions or events

v) social functions organised by groups, such as council committees and community organisations.

Gifts and benefits

6.3 You must avoid situations that would give rise to the appearance that a person or body is attempting to secure favourable treatment from you or from the council, through the provision of gifts, benefits or hospitality of any kind to you or someone personally associated with you.

6.4 A gift or benefit is deemed to have been accepted by you for the purposes of this Part, where it is received by you or someone personally associated with you.

How are offers of gifts and benefits to be dealt with?

6.5 You must not:

a) seek or accept a bribe or other improper inducement

b) seek gifts or benefits of any kind

c) accept any gift or benefit that may create a sense of obligation on your part, or may be perceived to be intended or likely to influence you in carrying out your public duty

d) subject to clause 6.7, accept any gift or benefit of more than token value as defined by clause 6.9

e) accept an offer of cash or a cash- like gift as defined by clause 6.13, regardless of the amount

f) participate in competitions for prizes where eligibility is based on the council being in or entering into a customer–supplier relationship with the competition organiser

g) personally benefit from reward points programs when purchasing on behalf of the council.

6.6 Where you receive a gift or benefit of any value other than one referred to in clause 6.2, you must disclose this promptly to your manager or the general manager in writing. The recipient, manager, or general manager must ensure that, at a minimum, the following details are recorded in the council’s gift register:

a) the nature of the gift or benefit

b) the estimated monetary value of the gift or benefit

c) the name of the person who provided the gift or benefit, and

d) the date on which the gift or benefit was received.

6.7 Where you receive a gift or benefit of more than token value that cannot reasonably be refused or returned, the gift or benefit must be surrendered to the council, unless the nature of the gift or benefit makes this impractical.

Gifts and benefits of token value

6.8 You may accept gifts and benefits of token value. Gifts and benefits of token value are one or more gifts or benefits received from a person or organisation over a 12-month period that, when aggregated, do not exceed a value of $50. They include, but are not limited to:

a) invitations to and attendance at local social, cultural or sporting events with a ticket value that does not exceed $50

b) gifts of alcohol that do not exceed a value of $50

c) ties, scarves, coasters, tie pins, diaries, chocolates or flowers or the like

d) prizes or awards that do not exceed $50 in value.

Gifts and benefits of more than token value

6.9 Gifts or benefits that exceed $50 in value are gifts or benefits of more than token value for the purposes of clause 6.5(d) and, subject to clause 6.7, must not be accepted.

6.10 Gifts and benefits of more than token value include, but are not limited to, tickets to major sporting events (such as international matches or matches in national sporting codes) with a ticket value that exceeds $50, corporate hospitality at a corporate facility at major sporting events, free or discounted products or services for personal use provided on terms that are not available to the general public or a broad class of persons, the use of holiday homes, artworks, free or discounted travel.

6.11 Where you have accepted a gift or benefit of token value from a person or organisation, you must not accept a further gift or benefit from the same person or organisation or another person associated with that person or organisation within a single 12-month period where the value of the gift, added to the value of earlier gifts received from the same person or organisation, or a person associated with that person or organisation, during the same 12-month period would exceed $50 in value.

6.12 For the purposes of this Part, the value of a gift or benefit is the monetary value of the gift or benefit inclusive of GST.

“Cash-like gifts”

6.13 For the purposes of clause 6.5(e), “cash- like gifts” include but are not limited to, gift vouchers, credit cards, debit cards with credit on them, prepayments such as phone or internet credit, lottery tickets, memberships or entitlements to discounts that are not available to the general public or a broad class of persons

Improper and undue influence

6.14 You must not use your position to influence other council officials in the performance of their official functions to obtain a private benefit for yourself or for somebody else. A councillor will not be in breach of this clause where they seek to influence other council officials through the proper exercise of their role as prescribed under the LGA.

6.15 You must not take advantage (or seek to take advantage) of your status or position with council, or of functions you perform for council, in order to obtain a private benefit for yourself or for any other person or body.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

CSP THEME Our civic leadership – Local leadership is strong, consultative, and responsive to our community’s needs.

CSP STRATEGY E.8 - Council has a governance framework that promotes and guides accountability and transparency.

Delivery Program E8.1 - Develop and implement good governance systems.

Operational Plan Core Business: review and manage Council’s delegations, benefits and gifts registers.

Environment and Climate Change

There are no direct environment and climate change impacts relating to the recommendation of this report.

Economic

There are no direct economic impacts related to the recommendation of this report.

Risk

Reporting publicly about gifts and benefits declared by councillors and council staff is a tangible way to demonstrate Council’s commitment to good governance. It fulfils the requirement to comply with the code of conduct and reduces risk of councillors or staff using their position to obtain a private benefit for themselves or for any other person or body.

This report assists councillors, staff, and the community, in understanding the process followed to avoid situations that give rise to the appearance that a person, or organisation, is attempting to secure favourable treatment.

Social / Cultural

There are no direct social or cultural impacts related to the recommendations of the report.

Attachments

1 ⇩. Gifts and Benefits Register 01/09/2023 to 31/08/2024

Council 16 October 2024

Item 10.8

10.8. Related Party Returns and Annual Disclosures by Councillors and Designated Persons 2023/2024

This report confirms the lodgement of Related Party and Pecuniary Interest Returns by councillors and designated persons for the period 1 July 2023 to 30 June 2024.

Director Business & Governance

Officer’s Recommendation

That Council note:

1. The report on the lodgement of Related Party Returns and annual disclosures by councillors and designated persons for the period ending 30 June 2024 and

2. The report on the lodgement of annual disclosures by designated positions for the period ending 30 June 2024.

Executive Summary

Related Party Returns and Annual Disclosure by councillors and designated person forms are due to be lodged by 30 September each year (within three months of the end of financial year). Councillors are also required to submit returns within 3 months of being elected.

Background

The disclosures of interest recorded in this report pertain to councillors; key management personnel; their close family members; as well as any entity controlled or jointly controlled by any of them.

Related Party Returns

The following persons were required to submit a related party disclosure form. These forms are provided to Council’s Auditors as part of the annual financial audit process.

Related Party Returns
Name	Position	Comments
Porter, David	Elected Official	Lodged
Allen, Tony (Anthony)	Elected Official	Lodged
Fitzpatrick, Russell	Elected Official	Lodged
Griff, Cathy	Elected Official	Lodged
Nadin, Mitchell	Elected Official	Lodged
O’Neil, Helen	Elected Official	Lodged
Robin, Joy	Elected Official	Lodged
Seckold, Elizabeth (Liz)	Elected Official	Lodged
Wright, Karen	Elected Official	Lodged
McMahon, Anthony	Chief Executive Officer	Lodged
Harrison, Emily	Director	Lodged
Bolton, Iliada	Director	Lodged
MacFarlane, Ian	Director	Lodged

Disclosures by Councillors and Designated Persons Return

The Local Government Act requires Councillors, the Chief Executive Officer, Directors, and people nominated by the Council as “Designated Persons” to complete Annual Disclosures of Interest Returns. This requirement is also outlined in Council’s code of conduct: Part 4.21 – Pecuniary Interest: Disclosure of interests in written returns.

Councillors

Councillors are required to lodge Disclosures by Councillors and Designated Persons forms annually and, in relation to business before Council. These requirements are outlined in Council’s code of conduct and Local Government Act. Each section of the return must be answered. Officers from the Office of Local Government may make inspections from time to time.

Amendments to the Act enable councillor participation in all elements of decision making relating to the exhibition and adoption of the Local Environment Plan (LEP) and Development Control Plan (DCP). The table below shows the lodgement status for the current return period (FY2024) of Councillors, elected in 2021, and senior staff:

Annual Return – Disclosure of Interest
Name	Position	Comments
Griff, Cathy	Elected Official	Lodged
Nadin, Mitchell	Elected Official	Lodged
Seckold, Elizabeth (Liz)	Elected Official	Lodged
Wright, Karen	Elected Official	Lodged
Allen, Tony (Anthony)	Elected Official	Lodged
Fitzpatrick, Russell	Elected Official	Lodged
O’Neill, Helen	Elected Official	Lodged
Porter, David	Elected Official	Lodged
Robin, Joy	Elected Official	Lodged
McMahon, Anthony	Chief Executive Officer	Lodged
Harrison, Emily	Director	Lodged
Bolton, Iliada	Director	Lodged
MacFarlane, Ian	Director	Lodged

Independent Audit, Risk & Improvement Committee (ARIC)

In accordance with the Local Government (General) Regulation 2021, members of Council’s Independent Audit, Risk & Improvement Committee, are required to lodge a Disclosure of Pecuniary Interests. Current members of the Independent Audit, Risk and Improvement Committee have lodged forms.

Annual Return – Disclosure of Interest
Name	Position	Comments
Bunn, Terrence	ARIC Chair	Lodged
Derera, Nick	ARIC Member	Lodged
Pryke, Michael	ARIC Member	Lodged
Saunders, Philip	ARIC Member	Lodged

Other Committee Members

Although the Council has traditionally not “designated” members of its various Community Committees the obligation to declare a conflict of interest under the Act still applies to these members. Committee members are required to observe the pecuniary interest provisions of the Act, declare an interest and not vote on matters in which they have a pecuniary interest. They must also leave the room in which the meeting is being held, after declaring an interest. All council committees are aware of this provision of the legislation.

Designated staff members

The following list represents the staff roles considered as officers required to submit a Pecuniary Interest Return for the current return period:

Annual Return – Disclosure of Interest
Position	Comments
Biosecurity Invasive Species Coordinator	Lodged
Building Certification Coordinator	Lodged
Building Surveyor	Lodged
Bushfire Planning Assessment Officer	Lodged
Compliance Officer	Lodged
Compliance Specialist	Lodged
Development Specialist	Lodged
Development Engineer	Lodged
Environmental Health Coordinator	Lodged
Environmental Health Coordinator (Contractor)	Lodged
Environmental Management Coordinator	Lodged
Manager Assets & Works	Lodged
Manager Certification & Compliance	Lodged
Manager Communications and Engagement	Lodged
Manager Corporate Planning and Improvement	Lodged
Manager Finance	Lodged
Manager Information Technology	Lodged
Manager Infrastructure & Services	Lodged
Manager Parks, Aquatics & Recreation	Lodged
Manager People and Governance	Lodged
Manager Planning and Sustainability	Lodged
Manager Project Services	Lodged
Manager Property and Legal	Lodged
Manager Community Connections	Lodged
Manager Water & Sewer	Lodged
Manager Waste	Lodged
Planning Contractor	Lodged
Planning Services Coordinator	Lodged
Plumbing & Drainage Compliance Officer	Lodged
Procurement & Contracts Coordinator	Lodged
Public Land Use Officer	Lodged
Ranger Services Coordinator	Lodged
Senior Building Surveyor (Casual)	Not Lodged
Senior Development Engineer - Planning	Lodged
Senior Town Planner	Lodged
Strategic Planner	Lodged
Strategic Planning Coordinator	Lodged
Town Planner	Lodged
Town Planner	Lodged
Town Planner	Lodged
Town Planner	Lodged
Town Planner	Lodged
Town Planner	Not Lodged
Graduate Town Planner	Not Lodged
Water and Sewer Development Engineer	Lodged
Waste Strategy Coordinator	Lodged

Options

Returns are required to be tabled at the next Council Meeting after 30 September.

Members of the public are entitled to inspect the returns of councillors, designated persons and delegates. Inspection of the records is free of charge.

Information about Disclosures of Interest can be found on Council’s website Disclosures of interest.

Copies of the returns can be viewed using these links:

· Councillors Disclosure of Interest returns to 30 June 2024

· Designated Persons Disclosure of Interest Returns to 30 June 2024

The register of Disclosure of Interest Returns can be viewed at Council’s administration office, Zingel Place Bega, on request.

Community and Stakeholder Engagement

Engagement undertaken

No community engagement is required for this process. Councillors and designated persons are provided with information regarding the requirements for lodgement of returns by governance staff and the executive office.

The relevant documents are available to the public on Council’s website.

Engagement planned

Internal stakeholders are provided with updated information when returns are due for submission for the 2024/2025 year.

Financial and Resource Considerations

Management of Council’s related party returns, and annual disclosure returns register is included in Council’s adopted budget and forms part of the core services of Council’s governance team.

Legal /Policy

Council must comply with disclosure requirements under its code of conduct and the following legislation and guidelines:

· Local Government Act 1993

· Local Government (General) Regulation 2021

· Australian Accounting Standard AASB124 Related Party Disclosures and the Australian implementation guidance for not-for-profit public sector entities (AASB.124)

· Privacy and Personal Information Protection Act [PPIP] (1998)

· Government Information Public Access Act [GIPA] (2009).

The Local Government Act requires Councillors, the Chief Executive Officer, directors, and people nominated by the Council as “Designated Persons” to complete annual disclosures of interest returns. This is outlined in Council’s code of conduct: Part 4.21 – Pecuniary Interest: Disclosure of interests in written returns.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

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

CSP Strategy E.8 Council has a governance framework that promotes and guides accountability and transparency.

Delivery Program E.8.1 - Develop and implement good governance systems.

Operational Plan Core Business - Support the organisation to meet the requirements of the Local Government Act.

Environment and Climate Change

There are no direct environment and climate change impacts relating to the recommendations of this report.

Economic

There are no direct economic impacts relating to the recommendations of this report.

Risk

Reporting publicly about the related party and annual disclosure returns lodged by councillors and staff demonstrates to the community one of the ways local government manages conflicts of interest in decision making. It provides Council’s commitment to compliance with the code of conduct, effective and impartial decision making and reduces the perception that councillors or staff can use their position to obtain a private benefit for themselves or for any other person or body.

It assists councillors, staff, and the community in understanding the processes followed to avoid situations that give rise to the appearance that a person or body could receive favourable treatment from councillors or council staff.

Social / Cultural

There are no direct social or cultural impacts related to the recommendations of the report.

Attachments

Nil

Council 16 October 2024

Item 10.9

10.9. Certificate of Investment August 2024

This report details Council’s cash and investments at 31 August 2024.

Director Business & Governance

Officer’s Recommendation

1. That Council receive and note the report on Council’s investment position at 31 August 2024.

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.

On 31 August 2024 the total capital value of cash and investments was $148,122,630.00 with 84% of Council’s investment portfolio directed to term deposits and the remainder held in cash deposit accounts. The following is investment information by fund:

Fund	August-2024 (‘000)
General Fund	65,684
Water Fund	27,003
Sewer Fund	55,436
TOTAL	148,123

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

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 August 2024 is detailed below:

Table 1: Cash and Investments listing
Issuer	Rating	Type	Purchase	Maturity	Interest Rate (%)	Capital Value ($)
Commonwealth Bank (Operating cash account)	AA-	CASH	-	-	4.35	12,983,852.44
Commonwealth Bank (At Call cash account)	AA-	CASH	-	-	4.40	10,000,000.00
NSW Treasury Corporation (Strategic Cash Fund)	AA-	CASH	-	-	-	138,777.56
NAB	AA-	TD	28/06/2023	24/09/2024	5.47	2,000,000.00
NAB	AA-	TD	14/12/2023	24/09/2024	5.16	5,000,000.00
Westpac	AA-	TD	30/09/2022	03/10/2024	4.78	2,000,000.00
Suncorp	AA-	TD	31/10/2023	31/10/2024	5.42	3,000,000.00
NAB	AA-	TD	11/12/2023	12/11/2024	5.22	5,000,000.00
Suncorp	AA-	TD	30/11/2023	29/11/2024	5.46	3,000,000.00
Bendigo and Adelaide	A-	TD	31/07/2023	03/12/2024	5.30	2,000,000.00
Commonwealth Bank	AA-	TD	15/12/2022	16/12/2024	4.59	5,000,000.00
NAB	AA-	TD	30/08/2023	14/01/2025	5.10	2,000,000.00
NAB	AA-	TD	28/06/2024	28/01/2025	5.30	2,500,000.00
Westpac	AA-	TD	08/02/2022	10/02/2025	2.00	5,000,000.00
NAB	AA-	TD	11/03/2024	11/03/2025	5.07	5,000,000.00
Suncorp	AA-	TD	30/11/2023	11/03/2025	5.40	2,000,000.00
ING	A	TD	15/04/2024	15/04/2025	5.19	5,000,000.00
Australian Military Bank	BBB+	TD	31/03/2023	16/04/2025	4.50	3,000,000.00
Suncorp	AA-	TD	30/11/2023	13/05/2025	5.40	3,000,000.00
ING	A	TD	28/05/2024	28/05/2025	5.27	3,000,000.00
ING	A	TD	31/05/2024	30/05/2025	5.31	1,000,000.00
BankVic	BBB+	TD	28/06/2023	17/06/2025	5.65	2,000,000.00
NAB	AA-	TD	29/07/2024	29/07/2025	5.30	2,000,000.00
Suncorp	AA-	TD	31/07/2023	31/07/2025	5.18	3,000,000.00
NAB	AA-	TD	31/01/2024	26/08/2025	4.95	3,000,000.00
BankVic	BBB+	TD	05/06/2024	05/09/2025	5.33	1,000,000.00
Westpac	AA-	TD	11/09/2023	11/09/2025	4.99	2,000,000.00
BankVic	BBB+	TD	29/07/2024	25/09/2024	5.30	2,000,000.00
Westpac	AA-	TD	31/10/2023	31/10/2025	5.41	2,000,000.00
Westpac	AA-	TD	29/06/2023	25/11/2025	5.10	2,000,000.00
Suncorp	AA-	TD	28/11/2023	28/11/2025	5.38	3,000,000.00
Westpac	AA-	TD (G)	29/02/2024	16/12/2025	4.88	5,000,000.00
Bank of Queensland	A-	TD	11/01/2024	12/01/2026	4.85	2,000,000.00
Westpac	AA-	TD (G)	08/02/2024	09/02/2026	4.84	5,000,000.00
ING	A	TD	11/03/2024	11/03/2026	4.85	5,000,000.00
Westpac	AA-	TD	28/06/2024	28/04/2026	5.20	2,500,000.00
Bank of Queensland	A-	TD	31/01/2024	26/05/2026	4.80	2,000,000.00
Bank of Queensland	A-	TD	28/05/2024	28/07/2026	5.00	5,000,000.00
ING Bank	A	TD	26/08/2024	18/08/2026	4.62	3,000,000.00
Westpac	AA-	TD	06/09/2023	07/09/2026	4.88	3,000,000.00
Bank of Queensland	A-	TD	25/05/2024	26/11/2026	4.95	5,000,000.00
Hume Bank	BBB+	TD	26/08/2024	08/12/2026	4.55	5,000,000.00
Suncorp	AA-	TD	11/01/2024	11/01/2027	4.88	2,000,000.00
Total Cash and Investments						$148,122,630.00

Table 2: Interest from Cash and Investments
Interest earned for August 2024	$538,925
Financial year to date interest earned	$1,049,956
Revised Budgeted interest for 2024/2025 financial year	$1,957,000
Percentage of the 2024/2025 budget earned by council	54%

Council’s investment portfolio is largely directed towards term deposits (84%). The remainder of the portfolio is held in cash deposit accounts with CBA and TCorp (16%).

The investments held by Council remain sufficiently liquid with 62% of investments maturing within the next 12 months.

Council’s cash and investment portfolio has a weighted average maturity of 312 days.

For the month of August the cash and investments held by Council provided a return of 5.04% p.a. exceeding the RBA cash rate of 4.35%. The return on investments has improved over recent months reflective of the maturity of previously lower yielding term deposits that are being replaced by higher yielding term deposits.

Council continues to utilise 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, Arlo Advisory provide investment advice on the surrounding market conditions and how council can maximise returns within the Ministerial Order and Council’s investment policy.

Table 3: Investments by Fund $’000
Fund	June-2024	July-2024	August-2024
General Fund	56,051	61,826	65,684
Water Fund	29,144	26,342	27,003
Sewer Fund	54,400	51,916	55,436
TOTAL	139,595	140,084	148,123

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 value of outstanding government grant debtors on 31 August 2024 is $1,069,278.49 with $81,079.14 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 (LG Act) determines money may only be invested in a type of investment authorised by Order of the Minister for Local Government and published in the Local Government Gazette. The current Ministerial Order of Investment was published 17 February 2011.

Clause 212 of the Local Government (General) Regulation 2021 (LG Regulations) 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, LG Regulations and Council’s Investment Policy.

Council has an Investment Policy, policy number 6.07 adopted 16 November 2022. The policy is reviewed every four years by Council and annually by Council officers. The policy was reviewed internally on 13 December 2023 and again in August 2024. A draft revised policy is currently on public exhibition. The draft can be viewed here: Investment Policy - Bega Valley Shire Council (nsw.gov.au).

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.

As at 31 August 2024, Council’s investment portfolio included $10 million of green certified investments.

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 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.

At 31 August 2024, all cash and investments held are within the counterparty, credit quality and maturity policy limits.

Other legal instruments, such as the Ministerial Order referenced above, are also being used to mitigate financial risk.

Legend: Compliant Non-Compliant

Counterparty Compliance

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Credit Quality Compliance

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Maturity Compliance

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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 16 October 2024

Item 10.11

10.11. Local Government NSW (LGNSW) Conference 2024 Motions

This report recommendations a range of motions for Council to submit for the Local Government NSW (LGNSW) Annual Conference.

Director Business & Governance

Officer’s Recommendation

It is recommended that Council endorse:

1. The motions adopted at the July 2024 Council meeting as included in this report be re-endorsed noting they have already been submitted into the LGNSW portal with the exclusion of the motion on ‘Skills Shortages – Childcare’.

2. That Council endorse the modified ‘Skills Shortages - Childcare’ motion included in this agenda for submission to the LGNSW portal.

3. The motion related to potential future highway corridors as included in this report be submitted through the LGNSW portal by 20 October 2024.

4. The motion related to amending the social housing target in the LGNSW Policy Platform be submitted through the LGNSW portal by 20 October 2024.

Executive Summary

Council is a member of LGNSW, the peak Local Government body in NSW. The Annual Conference is the pre-eminent policy making event for the local government sector in NSW. It is a key event for local government where Councillors come together to share ideas and debate issues that shape the way the sector functions and is governed.

Each year, member Councils across NSW submit a range of motions to the Annual Conference https://lgnswconference.org.au/. These motions relate to strategic local government issues which affect members state-wide and introduce new or emerging policy issues and actions. They are debated and resolved by Conference delegates, with successful resolutions guiding LGNSW’s advocacy priorities for the year ahead. The current LGNSW Policy Platform - May 2024 is included as an attachment to this report.

At the July 2024 Council meeting 19 motions were endorsed for submission to LGNSW, with a resolution of Council to draft an additional motion to cover potential future highway corridors. Given it is a Local Government election year, LGNSW requested that motions be submitted by 15 August 2024 however there is a subsequent and final submission deadline of 20 October 2024. The newly elected Council now have an opportunity to review the motions adopted in July and provide input prior to finalisation.

Background

Criteria for motion submission

The LGNSW Board has resolved and advised Council that motions will be included in the Business Paper for the Conference only where they:

1. are consistent with the objects of LGNSW (Rule 4 of the Association’s rules).

2. relate to or concern local government as a sector in NSW and/or across Australia,

3. seek to establish or change policy positions of LGNSW and/or improve governance of the Association (noting that the LGNSW Board is responsible for decisions around resourcing any campaigns or operational activities, and any necessary resource allocations will be subject to the LGNSW budgetary process),

4. have a lawful purpose (a motion does not have a lawful purpose if its implementation would require or encourage non-compliance with prevailing laws),

5. are clearly worded and unambiguous in nature, and

6. do not express preference for one or several members over one or several other members.

Motions adopted at Conferences inform LGNSW’s advocacy actions on behalf of the local government sector. LGNSW includes the exact wording of motions when writing to Ministers, departments and agencies post-conference, so it is important that the wording of motions clearly outlines your council’s policy intent or objective.

The format of motions, as much as possible, should call on a specific body (e.g. LGNSW, state government, federal government, a specific department or minister) and have a specific outcome that the motion is aiming to achieve. The wording should be unambiguous.

Motions must also be accompanied by evidence, for example an extract from Council Minutes that Council has resolved to submit the motion to the LGNSW Conference. Councils were encouraged to submit motions by Friday 15 August. The latest date motions can be submitted for inclusion in the conference business paper is Sunday 20 October 2024. This has provided the newly elected Council an opportunity to review the motions resolved by Council and consider any amendments or additional motions they would like to put forward.

Full details on the submission of motions can be found at: Motions | Local Government NSW | Annual Conference (lgnswconference.org.au)

Motion related to potential future highway corridors

At the July 2024 Council meeting a resolution was passed seeking that a draft motion relating to securing of potential future highway corridors be developed. Below is proposed motion.

Indicative category of the motion:	Infrastructure policy
Motion Title	Future Highway Corridor Planning
Motion Wording	That LGNSW 1. Call on the NSW Government to add the Snowy Mountains Highway and Monaro Highway to their strategic Road Network and Corridor Planning program and consider as a priority route within the South East Integrated Transport Plan under development. 2. Accelerate the identified initiatives within the Princes Highway corridor strategy south of Moruya in the Eurobodalla to remove higher productivity vehicle constraints between the south of NSW and markets to the north in Wollongong, Sydney, Newcastle as well as northern markets south into Victoria. 3. Consider the role and appropriate state ownership of Imlay Road in servicing markets west of the Bega Valley Shire and connecting with strategic assets at the Port of Eden and Edrom Road in future highway corridor planning as part of the South East Integrated Transport Plan.
Background note:	Road Network and Corridor Planning is the integrated management of roads in NSW for the benefit of all communities and transport users. Transport for NSW (TfNSW) currently have 10 strategic projects in their Road Network and Corridor Planning program that include the: - Barton Highway - Golden Highway - Newell Highway - New England Highway - Oxley Highway - Tumut to Hume Highway - Princes Highway - Lismore to Bangalow Road - Summerland Way - Waterfall Way A strategy for the Snowy Mountains and Monaro Highways appear current omissions from the list and is a key route allowing south eastern NSW residents and businesses to access services within the ACT and also markets further to the west. Brown Mountain, a key freight constraint on the Snowy Mountains Highway has also suffered recent geotechnical instability which has affected existing freight and vehicular access to the south east of NSW. The NSW Government is responsible for the management of State Highways and their corridors. Section 3 of the Roads Act 1993 confers powers and functions upon Transport for NSW (TfNSW) as a declared road authority to manage classified and unclassified roads. A State Highway is a type of classified road. The Roads Act permits TfNSW and other public authorities powers to carry out road work, regulate activities on public roads and distributes functions between TfNSW and other roads authorities. The Roads Act also provides a mechanism to classify, open and close public roads. Implementation of a future highway corridor may constitute the opening of a future public road.Acquisition of other types of land for potential future highway corridors within NSW that do not meet the conditions within the Roads Act would be subject to relevant Property acquisition frameworks. TfNSW’s power to acquire land is subject to the Land Acquisition (Just Terms Compensation) Act 1991. TfNSW has already undertaken a level of planning for future highway corridors with the publication of the various corridor strategies including the Princes Highway and Newell Highway Corridor Strategies available at https://www.transport.nsw.gov.au/projects/current-projects/princes-highway-corridor-strategy-0 and https://www.transport.nsw.gov.au/projects/current-projects/newell-highway-corridor-strategy The current Princes Highway Corridor Strategy has identified projects to resolve freight and safety constraints associated with the Brogo River bridge within Bega Valley Shire and also the crossing of Wagonga Inlet at Narooma within Eurobodalla Shire. Primarily, the existing corridor planning considers only current TfNSW Highway corridors and has not considered Imlay Road which is owned by a 3rd party, Forestry Corporation of NSW as another viable crossing of the Great Dividing Range escarpment.

Motion related to amending the social housing target in the LGNSW Policy Platform

Council wrote to LGNSW in July 2024 requesting that the social housing target in the LGNSW Policy Platform be amended from 25% to 30%. LGNSW advised that a further resolution of the LGNSW conference would be required to establish a new minimum target.

Indicative category of the motion:	Housing and homelessness
Motion Title	Social housing target amendment
Motion Wording	That LGNSW advocates for the NSW and Australian Governments to address homelessness, the housing affordability crisis and access to public, social and affordable housing in metropolitan, regional and rural areas, including through: - Setting minimum targets of 10 per cent social and affordable housing across NSW and at least 30 per cent on government-owned land.
Background note:	This motion calls for an increase in the targets currently outlined in the LGNSW Policy Platform. Increasing these targets would see the LGNSW policy platform document aligned with the current State Government mandate for 30% social and affordable housing on government owned land. https://www.nsw.gov.au/media-releases/supporting-affordable-housing-construction

Motions adopted by Bega Valley Shire Councillors at July 2024 Council meeting

https://begavalley.infocouncil.biz/Open/2024/07/OC_24072024_AGN_1024_AT_WEB.htm

Indicative category of the motion:	Social and community policy
Motion Title	Regional Arts Development Organisations Funding
Motion Wording	That LGNSW 1. Call on the NSW Government to reinstate the secure funding for 15 Regional Arts Development Organisations (RADOs) 2. Call on the NSW Government to review the Creative Communities funding reform and ensure that funding programs previously used to support Council cultural and community services are not reduced.
Background note:	As part of the NSW Government’s Arts, Culture and Creative Industries Policy (Creative Communities) 2024-2033, the Arts and Cultural Funding Program (ACFP) reform has recently been announced in June 2024. The reform brings an end to the Regional Arts Development Organisations (RADOs) framework. From 2025 each of the 15 RADOs will have to apply for funding on a competitive basis in the same pool as arts organisations from across the state. RADOs play a critical role in developing arts and cultural talent in regional communities, through locally driven arts events and festivals, partnerships with local government, businesses and organisations and individual support for creatives. Across the state, councils invest and support RADOs through various means and do so on the basis that the NSW Government is also investing in these organisations to ensure that they have adequate resources to hire staff and produce programs for the communities that they serve. Without secure state funding it places further pressure on councils and leaves RADOs in a precarious annual hunt for funding to remain viable. It is hardly a stable base from which to support the arts sector. Create NSW did not consult with the RADO network, Local Government NSW or councils on this significant change to how the regional arts sector will be supported moving forward. The intent of the Creative Communities policy was to support artists, creatives and cultural organisations, however this dismantling of the secure funding structures of RADOs across the state only serves to create further volatility for the regional arts sector. The NSW Government has also simplified various arts and culture funding programs from 14 down to 4 and is seeking to implement improvements in application processes, however Council is concerned that with fewer programs and greater competition this will impact funding Council has relied upon to support cultural services like our regional gallery.

Indicative category of the motion:	Social and community policy
Motion Title	Waste tendering regulations amendments
Motion Wording	That LGNSW: Call on the NSW Government to urgently repeal or adjust the waste tendering regulations recently adopted in December 2023 that was intended to protect the employment of private sector waste workers, however limits value for money outcomes in service provision for communities.
Background note:	In December 2023, the Local Government (General) Regulation 2021 was amended by the Local Government (General) Amendment (Tendering) Regulation (No 2) 2023 (Amendments). The Amendments relate to local government waste management tenders, and place new obligations on both Councils and waste management contractors to mandate conditions of employment of incumbent waste employees and increase the oversight of trade unions in NSW’s waste industry. Tender proposal documents issued by Councils for domestic or other waste management services contracts must now include details of the individual employees who currently provide the service, and the terms on which the individuals are employed (i.e. salaries and leave entitlements), unless the council cannot reasonably obtain access to that information. The information must be de-identified to protect the privacy of individuals. If the tender documents include the employee information referred to above then tender submissions must contain an undertaking that the tenderer will offer those employees continued employment: · on at least the same terms as that individual’s current employment; · that recognises the employee’s period of service with the incumbent provider; and · that will pay annual increases in accordance with either the applicable industrial instrument or the Local Government (State) Award. The onus is on the tenderer to comply with these employee protection clauses. Non-compliance can lead to disqualification from the tender process or legal consequences post-award. A Council cannot accept a tender submission until it has consulted with and satisfied the relevant trade union, adding another layer of complexity and risk to the tender process. These amendments could lead to increased operational costs due to higher wage bills and financially impact Councils and ratepayers. They also provide an unfair advantage to incumbent contract holders therefore reducing competitiveness in the tendering process. There is also considerable risk that this approach to worker protection could set a precedent for other services that Councils contract out including civil works, IT support, legal services, undermining the principles of local government procurement more generally.

Indicative category of the motion:	Council governance and accountability
Motion Title	Cyber Security in Local Government
Motion Wording	That LGNSW expand on the current LGNSW advocacy priority on cyber security and call on the NSW Government to: 1) Note the findings of the Audit Office of NSW, March 2024 Cyber security in local government Audit finding report, acknowledging the challenges to Local Government in maintaining a strong cyber security stature. 2) to implement recommendations found in the report including: - maintaining a schedule of regular consultation between Office of Local Government, Cyber Security NSW and the local government sector, to progress maturity in cyber security risk management. This should include process guides, templates and best practice recommendations and a framework to regularly review. - Instruct the Office of Local Government to update procurement guidelines to support managing cyber security risks in procurement processes and ongoing third-party arrangements. This could include the establishment of standard agreements; local government entities may piggyback for access to recommended and vetted cyber security services (eg. Security Operations Centre providers). - Cyber Security NSW maintain and expand the Cyber Security Guidelines and related resources and review the usefulness / adaptability of these products to local government entities. 3) establish a permanent funding stream to assist and supplement investment in Cyber Security skills. This could take the form of: a. Trainee / apprenticeship or other learning opportunities to engage, build and maintain cyber security knowledge in local government. b. Expanded support and resources available from Cyber Security NSW, so that ‘free’ services are more readily available. Specifically around architecture, planning, monitoring and governance. c. Increased grant opportunities for digital solutions. d. Establishing Local Government Agreements, enabling shared licencing agreements at reduced costs and defined service scopes.
Background note:	In 2022 the Office of Local Government – Cyber NSW published the ‘Cyber Security Guidelines – Local Government’ recognising that Cyber Security is relevant within the Local Government environment and context. In 2023-2024, the Audit Office of NSW conducted a Cyber security in local government Audit, finding that whilst Councils are making progress towards improving Cyber Security it is limited. Many Councils are also adopting greater digital solutions, keeping pace with the world of Digital Government and the service offerings presented by our chosen vendors. The shift to digital service delivery requires a transformation not only of the supporting technology capabilities but also of the staff, vendors and service delivery practices employed within Councils. Adopting a cyber security lens to service delivery and governance cannot occur without the appropriate knowledge and education. Strong cyber security enables the effective use of emerging technologies, maintaining the confidence, integrity and availability of the services we provide, as level of Australian Government. Whilst the Australian and NSW Governments recommend the adoption of cyber security practices, many Councils do not have access to the capability, funding and capacity required for cyber security maturity uplift.

Indicative category of the motion:	Infrastructure policy
Motion Title	Certainty and regularity in roads and bridges funding programs
Motion Wording	That LGNSW calls on the NSW Government to provide certainty, flexibility and regularity around future roads and bridge funding programs and supports better connection between these programs.
Background note:	Councils are required to develop asset management and financial planning documents over a minimum 10- year period. Councils also rely heavily on competitive and non-competitive grant funding from both the state and federal governments to deliver the required level of asset maintenance, renewals and upgrades. Council is calling on the state government to commit to longer term roads and bridge funding programs that are visible multiple years in advance and are not impacted by election cycles. This certainty and regularity of funding programs helps Councils to better plan and deliver on its forward capital works programs. Council is also calling on the State Government to provide funding programs that support pre-construction project development activities like design and investigation. At present roads and bridges funding streams are often separate programs. Improved integration where a package of works including both road and bridge assets may be funded under a grant program would provide improved outcomes.

Indicative category of the motion:	Economic policy
Motion Title	Procurements outside the public tender process
Motion Wording	That LGNSW calls on the NSW Government to provide a Procurement Code of Conduct to allow consistency across local government procurement activities, provide a platform for smaller regional councils with limited resourcing, and ensure consistency for suppliers when responding to quotes across multiple local government regions.
Background note:	The Local Government Act 1993 (NSW) specifies instances where a public tender process is not required, and there are provisions for seeking quotes from pre-approved contractors. Beyond these instances, individual councils are responsible for creating and maintaining their own procedures related to procurement. While resources on procurement processes and governance are available, examples may only serve as reference material and might not directly apply to local government procurement activities. When legislation updates are necessary for incorporation into council policies, subject matter experts can provide input and strategies. For instance, recent audit recommendations highlighting the need to incorporate cybersecurity measures into council procurement policies.

Indicative category of the motion:	Social and community policy
Motion Title	Regional Housing Flying Squad
Motion Wording	That LGNSW call on the State Government to reinstate the Regional Housing Flying Squad that ceased on 30 June 2024.
Background note:	The State Government launched the Regional Housing Flying Squad (RHFS) in April 2022. It was a free program for all 96 regional councils that allowed them to outsource the assessment of residential Development Applications to a team of planners in the State Government Planning Delivery Unit. It was practical and much needed support from the State Government that genuinely took pressure off our planners. The program is no longer being funded and concluded on 30 June 2024. This service was assisting councils to deliver an efficient development assessment service when skills shortages continue. Since the inception of the program, the RHFS has completed the assessment of 74 DAs on behalf of Council. The continuation of the RHFS is essential for Council to provide the community with completed assessments within reasonable timeframes and enable much needed development to progress, particularly following the Minister’s Statement of Expectations Order 2024 which came into effect on 1 July 2024, directing councils to continue to reduce their DA assessment timeframes.

Indicative category of the motion:	Planning and building regulation policy
Motion Title	Planning reform fee collection
Motion Wording	That LGNSW advocate to the Department of Planning to adapt the planning portal to allow the State Government to collect the planning reform fee directly from applicants
Background note:	Councils currently collect the planning reform fee on behalf of the State Government in accordance with Section 266 of the Environmental Planning and Assessment Regulation 2021. The fee is collected and then paid back to the State Government. The Planning Portal could be configured so that this fee is paid directly to the state, saving Council administrative resources in collection and payment.

Indicative category of the motion:	Infrastructure policy
Motion Title	The importance of council recreation assets is recognised as a preventative tool directly linked to and supporting the health care sector
Motion Wording	That LGNSW call on the NSW Government to acknowledge the importance of leisure and recreation facilities provided by Councils across the state as a key element supporting the health care sector through enabling healthy lifestyles and reducing impacts, consequence and costs of poor health.
Background note:	Councils across the state manage billions of dollars of leisure and recreation assets including playgrounds, natural reserves, sporting complexes and swimming pools. Councils also rely heavily on grant funding to renew and upgrade those assets when needed. Council is requesting the NSW Government acknowledge the important role these assets play in helping communities to stay active and engaged. These assets provide venues where people can connect, exercise and socialise and engage in healthy lifestyles. Healthy people are more productive and have higher workplace attendance reducing the impact of absenteeism on business and the economy. Recreation assets play a key role in the prevention of poor health outcomes for communities and reducing the impact and burden on the health care sector. The importance of recreation assets as an integral item linking to heath care needs to be acknowledged, and their value in prevention of poor health outcomes reflected in funding available for provision of these assets.

Indicative category of the motion:	Social and community policy
Motion Title	State-wide library shared collection
Motion Wording	That LGNSW call on the State Library to investigate the feasibility of a state-wide library shared collection, as is the model in Victoria.
Background note:	Councils in Victoria have a one card system across the state so that all public libraries are connected and there is a shared collection which offers efficiencies to Councils and a larger range of items for library users.

Indicative category of the motion:	Social and community policy
Motion Title	Cemeteries internment levy
Motion Wording	That LGNSW call on the NSW Government to remove the cemeteries internment levy imposed on councils from 1 July 2024.
Background note:	Without sector consultation or adequate notice the NSW Government imposed a cemeteries levy on Councils. This is an example of blatant cost shifting to councils.

Indicative category of the motion:	Environmental policy
Motion Title	Dams Safety Regulation Levy
Motion Wording	That LGNSW call on the NSW Government and IPART to consider the cost increases in the levy that will be passed onto Councils and consider including this levy as a ‘special adjustment factor’ in the rate peg formula.
Background note:	In 2015, the NSW Parliament passed legislation allowing the NSW Government to establish a levy to fund the costs of regulating the safety of declared dams. IPART has been authorised by the NSW Government to design the levy and has consulted with dam owners including Councils who will be impacted by the levy. This levy could cost Bega Valley Shire Council up to $100,000 which will be passed onto ratepayers with no mechanism to recoup those funds so as to not impact service delivery.

Indicative category of the motion:	Council governance and accountability
Motion Title	Mandatory Councillor induction training
Motion Wording	That LGNSW call on the Office of Local Government to fund mandatory training for elected officials on governance in local government and that: 1. the training be developed and delivered uniformly across the sector by an approved provider. 2. the training include the following components: - Code of Conduct - Financial Management - Asset management - Social media - Planning in local government - IPR framework 3. The OLG Administer a register of attendance in the mandatory training and implement consequences for failure to attend
Background note:	Councillors are elected by their communities to set and deliver upon a strategic direction for their Local Government Area. Councillors bring a diversity of skills and experience and at times this may not include the skills or experience required to manage an asset and service-based business like Councils. Mandatory skills-based training to assist Councillors to ensure they are equipped to undertake their role is imperative. Local Government elections will be held in September 2024. As a result, members of the community will be elected to Council as either a mayor or councillor. There is a need to ensure that all elected officials are onboarded and inducted to their roles as public officials in a professional and productive manner. Clear instruction, training, and development is required for all people elected to public office. A formal, consistently applied, and regulated induction program across the sector would potentially improve the quality of services delivered to our communities.

Indicative category of the motion:	Industrial relations and employment policy
Motion Title	Employee development support
Motion Wording	That LGNSW call on the NSW government to ensure that funding for trainee and apprenticeship programs consider the costs associated with coordinating, supervising and mentoring these employees.
Background note:	The State Government offers various funding programs that provide support for trainees, apprentices and cadet programs. The funding is typically targeted at the education institution or the employee directly. There is inadequate funding provided for the organisation that is required to coordinate, supervise and mentor these employees in the early stages of their career. More resourcing is required within local government to coordinate learning and development plans, mentoring, coaching, and supervision of young people engaged cadetships, traineeships, and apprenticeships.

Indicative category of the motion:	Council governance and accountability
Motion Title	Funding of Pensioner Rebates
Motion Wording	That LGNSW: Call on the NSW government to fully fund pensioner rebates and take the additional financial burden off non pensioner ratepayers.
Background note:	The system of rating in NSW allows for pensioners to receive a rebate from their rates. Although this principle has merit and is generally supported by councils there are consequences that are not supported. Councils have costs of providing services to their communities and if council is essentially ‘retuning revenue’ to some of its ratepayers being pensioners it means they need to generate offsetting revenue from their ratepayers to cover the cost of rebates. If there is demographic change over time resulting in more pensioners in a local government area (LGA) this can further exacerbate the issue. The solution to address inequities within different LGA’s is for the NSW Government to fully fund pensioner rebates.

Indicative category of the motion:	Economic policy
Motion Title	Grant funding for planning and strategy development
Motion Wording	That LGNSW: Advocate to the NSW Government to continue to develop and deliver grant funding programs that support strategic planning and strategy development.
Background note:	Many councils are experiencing unprecedented growth and development. This demand for growth provides an enormous opportunity for regional communities as well as numerous challenges. There are very few grant programs that offer funding for forward planning and strategy related work, with the funding typically available for the delivery of infrastructure. Grants to support councils to undertake planning work will ensure councils are better placed to respond to and deliver quality grant funded infrastructure projects. It is imperative if we are to get the infrastructure we need in the right place for the right type of growth that funding is available for planning related work.

Indicative category of the motion:	Industrial relations and employment policy
Motion Title	Skills shortages
Motion Wording	That LGNSW: 1. Call on the NSW and Federal Governments to provide incentives to address critical sector skills shortages effecting private and public investment, primarily in the fields of planning, engineering and building certification with these incentives to be in the form of scholarships, co-funding cadetships and reduced university course costs. 2. Encourage all NSW to provide cadetship programs to build sector capacity in areas of critical sector skill shortages
Background note:	NSW is currently facing a housing affordability and availability crisis with a number of factors contributing to the situation. There is also an enormous pipeline of public investment that has been targeted at unlocking future economic growth. It is becoming more apparent that there is an imbalance between demand for a number of skilled professions and supply of practitioners in those fields that is creating a real barrier to housing and enabling infrastructure development. Key shortage areas in both the private and public sector are most acute in the engineering (including development engineering), planning (including development assessment) and building certification areas. Competition for the relatively limited supply of these professions compared to demand means that everyone is competing for the same number of limited people, rather than addressing the underlying issue of supply in the fields. Through targeted incentives there is the opportunity to address the issue albeit it recognising the investment is for the longer term benefit.

Indicative category of the motion:	Infrastructure policy
Motion Title	Power provision to government owned infrastructure
Motion Wording	That LGNSW: 1. Advocate to the NSW Government to develop appropriate planning controls and aligned funding mechanisms to ensure that new local, state, and federal government buildings and infrastructure that consume electricity include provision of solar power or an alternative renewable source in their design and construction where feasible. 2. Utilise the Renewable Energy Infrastructure mapping portal to drive investment in renewable energy for government assets
Background note:	Councils are driving local solutions to energy consumption and climate change and are seeking to ensure that local infrastructure provided by all levels of government seek to source their power from renewable sources. The NSW Government has analysed 165,000 government land assets for renewable energy opportunities using the Renewable Energy Infrastructure mapping portal to identify land assets for renewable energy opportunities including, wind, solar and pumped hydro. Councils would like to see that mapping work materialize into investment in renewable energy facilities on government assets.

Indicative category of the motion:	Social and community policy
Motion Title	Skills shortages - Childcare
Motion Wording	That LGNSW: Call on the NSW and Federal Governments to provide incentives to address critical skills shortages in childcare
Background note:

Indicative category of the motion:	Social and community policy
Motion Title	Affordable Housing
Motion Wording	That LGNSW: 1. Call on the State Government to urgently complete the review of the Local Government (Manufactured Home Estates, Caravan Parks, Camping Grounds and Moveable Dwellings) Regulation 2021 to define 'portable device for human habitation’ and the standards required to approve such devices that don’t meet the definition of ‘manufactured housing’ or ‘caravan’ 2. Advocate for new regulations/guidance regarding acceptable standards for crisis housing
Background note:	The Bega Valley, like much of NSW, is in the midst of a housing crisis. Manufacturers are capitalising on the lack of affordable housing, producing and marketing new products as ‘caravans’ or ‘moveable dwellings’, however they do not meet the definitions nor intent of ‘caravan’, ‘moveable dwelling’ or ‘manufactured house’. These products are typically delivered on a trailer but expand to twice or triple the size, are placed on foundations, have a roof fitted, a deck built at the entrance and are connected to water and sewer. Additionally, there is case law that demonstrates that not all products sold as ‘moveable dwellings’ actually meet the definition. Councils need clear guidance from the State Government on whether these products are intended to be excluded or whether the legislation needs to be updated to expressly allow them and provide guidance on the certification requirements. This is particularly important as the units are being purchased to provide cheaper living options or to be used as crisis housing, and installed without any council approval. As well the current review into the Local Government (Manufactured Home Estates, Caravan Parks, Camping Grounds and Moveable Dwellings) Regulation 2021, it is essential that the government considers whether a lower standard is acceptable for temporary, crisis accommodation to help address the housing crisis and increasing homelessness.

Options

Council may resolve to amend or remove the motions adopted by Council in July 2024 as outlined in this report.

Council may resolve to add additional motions.

Community and Stakeholder Engagement

Engagement undertaken

Internal engagement has been undertaken in development of the motions recommended by Council officers. Council continues to advocate on various matters impacting our community and contributions to advocacy forums like the Local Government NSW Annual Conference provide an opportunity to ensure our voice is heard at a state level.

Engagement planned

Council will continue to engage with the community to develop our advocacy priorities. The community can contribute to and support our advocacy efforts with more information available on our website https://begavalley.nsw.gov.au/council/advocacy

Financial and Resource Considerations

There are no direct financial or resource considerations. The draft motions are compiled by staff and presented to Councillors for their consideration.

Legal /Policy

There are no legal or policy implications associated with this report. Should the motions Council has proposed be supported by LGNSW and changes made by the State Government there could be future legal and policy implications.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Councils’ participation at the LGNSW Conference through the submission of motions ensures that legislative, policy and funding matters that impact our community and Council service delivery are raised with LGNSW and the NSW Government.

Environment and Climate Change

There are no environment and climate change implications associated with this report other than those outlined in respective motions.

Economic

There are no economic implications associated with this report other than those outlined within respective motions.

Risk

There are no risks associated with this report other than the potential missed opportunity to influence change across the local government sector.

Social / Cultural

There are no social/cultural issues pertaining to this report other than as outlined within respective motions.

Attachments

1 ⇩. Local Government NSW Policy Platform 2024

[1] Refer Bega Valley Shire Council 2024-25 Fees and Charges

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

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

Council	16 October 2024
*Item 9.2 - Attachment 1*	LTC Pericoe Road - closed section location and photos

Council	16 October 2024
*Item 9.2 - Attachment 2*	LTC Proposed line marking U-turn Imlay Street Eden

Council	16 October 2024
*Item 10.1 - Attachment 1*	Council report dated 22 March 2023 - EOI 2223-043 Merimbula Airport General Aviation Precinct land leases

Ordinary

Meeting Notice and Agenda

To:

Copy:

Live Streaming of Council Meetings

Publishing of Agendas And Minutes

Ethical Decision Making and Conflicts of Interest

A guiding checklist for Councillors, officers and community committees

Ethical decision making

Conflict of interest

The test for conflict of interest

Identifying problems

Local Government Act 1993 and Model Code of Conduct

Agency advice

Disclosure of pecuniary interests / non-pecuniary interests

Agenda

Statement of Commencement of Live Streaming

Acknowledgement of Traditional Owners of Bega Valley Shire

1 Apologies and requests for leave of absence

2 Confirmation Of Minutes

3 Declarations

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

5 Petitions

6 Mayoral Minutes

7 Urgent Business

8 Staff Reports – Community, Environment and Planning

9 Staff Reports – Assets and Operations

10 Staff Reports – Business and Governance

11 Councillor Reports

12 Rescission/Alteration Motions

13 Notices of Motion

14 Questions with Notice

15 Questions without Notice

16 Confidential Business

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	16 October 2024
*Item 10.1 - Attachment 2*	Council report dated 20 March 2024 - Airport tenure arrangements

Council	16 October 2024
*Item 10.2 - Attachment 1*	FY2024 Financial Statements - Primary Statements

Council	16 October 2024
*Item 10.2 - Attachment 2*	FY2024 Financial Statements - Note C1-3 Restricted and allocated cash, cash equivalents and investments

Council	16 October 2024
*Item 10.4 - Attachment 1*	Mobile Food Vending - Prime Site Identification EOI presentation

Council	16 October 2024
*Item 10.4 - Attachment 2*	Comprehensive table of all owned and managed land investigated

Council	16 October 2024
*Item 10.6 - Attachment 1*	State of the Shire Report - August 2024

Council	16 October 2024
*Item 10.7 - Attachment 1*	Gifts and Benefits Register 01/09/2023 to 31/08/2024

Council	16 October 2024
*Item 10.10 - Attachment 1*	Audit Risk and Improvement Committee ARIC Quarterly Report September 2024

Council	16 October 2024
*Item 10.11 - Attachment 1*	Local Government NSW Policy Platform 2024