Agenda of Council - Wednesday, 27 November 2024

Ethical Decision Making and Conflicts of Interest

A guiding checklist for Councillors, officers and community committees

Ethical decision making

· Is the decision or conduct legal?

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

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

· Does it raise a conflict of interest?

· Do you stand to gain personally at public expense?

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

· Would it withstand public scrutiny?

Conflict of interest

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

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

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

The test for conflict of interest

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

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

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

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

Identifying problems

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

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

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

Local Government Act 1993 and Model Code of Conduct

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

Agency advice

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

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

Disclosure of pecuniary interests / non-pecuniary interests

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

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

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

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

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

Council

27 November 2024

Agenda

Statement of Commencement of Live Streaming

Acknowledgement of Traditional Owners of Bega Valley Shire

Statement of Ethical Obligations

1 Apologies and requests for leave of absence

2 Confirmation Of Minutes

Recommendation

That the Minutes of the Ordinary Meeting held on 6 November 2024 as circulated, be taken as read and confirmed.

3 Declarations

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

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

5 Petitions

6 Mayoral Minutes

7 Urgent Business

8 Staff Reports – Community, Environment and Planning

8.1 Demolition and erection of a 2 storey dwelling and swimming pool - Lot:12 DP: 249625 - 9 Weemilah Drive Pambula Beach............................................ 2

8.2 Endorsement of Minor Amendments Planning Proposal................................................................ 2

9 Staff Reports – Assets and Operations

9.1 Request for Tender (RFT) 2425-010 Bemboka Reservoir Renewal................................................ 2

9.2 Waste Grants Program FY 2025-26 to FY 2028-29.. 2

9.3 Request for Tender (RFT) 2324-064 Brogo Tank 2 Replacement......................................................... 2

9.4 Regional Airport Program Round 4 (RAP4) Application............................................................ 2

9.5 Merimbula Airport Taxiway Charlie Culvert Upgrade - RAP3.................................................................... 2

10 Staff Reports – Business and Governance

10.1 Annual Report 2023-24............................................ 2

10.2 Subdivision of Central Waste Facility for lease purposes................................................................ 2

10.3 Adoption of Policy 6.23 - Payment of Expenses and Provision of Facilities to Councillors..................... 2

10.4 Certificate of Investment October 2024.................. 2

10.5 Community Satisfaction Survey 2024...................... 2

10.6 Adoption of Policy 6.07 Investment Policy.............. 2

10.7 EOI 2425-032 Use of Council owned and managed reserves for mobile food vending......................... 2

10.8 Quarterly Budget Review Statement (QBRS) September 2024 Q1.............................................. 2

10.9 Presentation of Financial Statements and Audit Report for the Year Ended 30 June 2024.............. 2

10.10 Draft 2024 - 2028 Community Engagement Strategy............................................................................... 2

10.11 Audit and Risk Improvement Committee and Councillor Representatives on Committees......... 2

10.12 Code of Conduct Statistical Reporting 2023/2024.. 2

10.13 6.16 Draft Policy - Community Engagement............ 2

10.14 Submission to Office of Local Government (OLG) - Councillor Conduct and Meeting Practices - Discussion Paper................................................... 2

11 Councillor Reports

12 Rescission/Alteration Motions

13 Notices of Motion

13.1 Review Pathways..................................................... 2

13.2 Acquisition of land in Eden...................................... 2

13.3 Development assessment audit............................... 2

13.4 Activation of Nullica Lodge site................................ 2

14 Questions with Notice

15 Questions without Notice

15.1 Cr Nadin - NSW Government PFAS water supply testing................................................................... 2

16 Confidential Business

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

Adjournment Into Closed Session, exclusion of the media and public 2

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 27 November 2024

Item 8.1

8.1. 2023.241 Demolition and erection of a 2 storey dwelling and swimming pool - Lot:12 DP: 249625 - 9 Weemilah Drive Pambula Beach

Director Community Environment and Planning

Applicant	Elizabeth Slapp (PLANNED)
Owner	Glen and Michelle Baker
Site	Lot:12 DP: 249625 – 9 Weemilah Drive, Pambula Beach
Zone	R2 Low Density Residential
Site area	682.5m²
Proposed development	Proposed demolition of existing dwelling house and the construction of a new two storey dwelling house, swimming pool and associated works

Precis

The application includes the demolition of the existing dwelling house and the proposed construction of a new two storey dwelling house and ancillary swimming pool, with associated earthworks and retaining structures.

The application is being reported to Council as the new dwelling would exceed the height limit of 7.5 metres as prescribed in Clause 4.3 of the Bega Valley Local Environmental Plan 2013 (BVLEP 2013). The application is accompanied by a Clause 4.6 request for variation under BVLEP 2013 to the height of buildings development standard. As the variation request is greater than 10%, Council assessing staff do not have delegation to determine the application and therefore the application is to be determined by the elected Council.

The application is recommended for approval.

Officer’s Recommendation

1. That Council support the Clause 4.6 variation request to the height of building development standard, specified under Clause 4.3(2) of the Bega Valley Local Environmental Plan 2013.

2. That Council approve development application 2023.241 for the demolition of existing dwelling and construction of a new dwelling, swimming pool and associated works at Lot 12 DP 249625, 9 Weemilah Drive, Pambula Beach, subject to the conditions of consent provided in Attachment 2.

3. Notify those who made a submission of Council’s decision.

Executive Summary

Development Application (DA) 2023.241 is being reported to Council for determination because the application seeks to vary the height of buildings development standard specified by Clause 4.3 of BVLEP 2013.

The development proposal has been assessed under Section 4.15 of the Environmental Planning and Assessment Act 1979 (EP&A Act) – refer Attachment 1. The variation to the height limit is considered moderate given the location of the exceedance to the height limit is confined to a small area of the building and is relative to the topography of the site, with minimal resulting impacts to streetscape character and neighbourhood amenity.

The proposed development is recommended for approval, subject to the draft conditions of consent provided in Attachment 2.

Background and Site description

The development site is located on the north-eastern side of Weemilah Drive, Pambula Beach, and is legally described as Lot 12 of DP 249625, 9 Weemilah Drive, Pambula Beach (see Figure 1).

The site is rectangular in shape with a frontage of 17.5 metres (m) and respective depths of 38.995m and 39.01m along the north-western and south-eastern side boundaries. The site has an area of 682.5m², with a north-east/south-west orientation.

The site is zoned R2 Low Density Residential, pursuant to BVLEP 2013 and currently accommodates a part 1-2 storey dwelling house.

The site is devoid of native vegetation and includes a number of shrubs and plantings within the rear third of the site. The front of the site also contains a number of shrubs.

The site experiences a fall of approximately 10m that slopes away from the western front corner towards the eastern rear corner.

The site is environmentally constrained with regard to bushfire hazard. The site is not burdened by any easements or restrictions and is connected to all services.

A aerial view of a neighborhood

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Figure 1 – Subject site

Proposed Development

The proposal comprises the construction of a new dwelling house and swimming pool and includes the following:

· Demolition of the existing dwelling house, ancillary structures and concrete driveway

· Earthworks

· Construction of a new two-storey dwelling house

· Site landscaping, including the installation of an in-ground, pre-cast swimming pool

· Site services, driveway access arrangements and other works as documented within this application

(See Figures 2-4 below and Attachment 3)

A blueprint of a building

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Figure 2: Proposed Development – Site Plan

A drawing of a building

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Figure 3: Proposed Development – South-West (Front) and North-West (Side) Elevations

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Figure 4: Proposed Development – North-East (Rear) and South-East (Side) Elevations

Planning Assessment

The development application has been assessed in accordance with the matters for consideration under Section 4.15 of the EP&A Act (refer to Attachment 1).

The application was notified for a period of fourteen (14) days. Five (5) submissions by way of objection were received during the exhibition process. The issues raised within the submissions are addressed in detail within Attachment 1 and later within this report.

Planning Assessment

Bega Valley Local Environmental Plan 2013 (BVLEP)

The development has been assessed in accordance with the relevant provisions of the BVLEP.

The land is zoned R2 Low Density Residential under BVLEP 2013. The proposed land use, being for a dwelling house, is permissible with consent within the R2 zone.

A 7.5m height limit currently applies to the site, which is measured from the existing ground level to the highest point of the building. The BVLEP defines building height as follows:

building height (or height of building) means—

(a) in relation to the height of a building in metres—the vertical distance from ground level (existing) to the highest point of the building, or

(b) in relation to the RL of a building—the vertical distance from the Australian Height Datum to the highest point of the building,

including plant and lift overruns, but excluding communication devices, antennae, satellite dishes, masts, flagpoles, chimneys, flues and the like.

Portions of the proposed development’s skillion roof design protrudes above the 7.5m height limit, representing at its maximum a proposed building height of 9.535m. This represents a maximum 27.13% (2.035m) variation to the development standard.

The elements of the building that exceed the 7.5m height limit are depicted in Figures 5-6 below.

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Figure 5: Elements of the proposed development that exceed the 7.5m height plane (highlighted in red hatching)

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Figure 6: Elements of the proposed development that exceed the 7.5m height plane (highlighted in red hatching)

Variations to Development Standards under Clause 4.6

The application has been accompanied by a written request under clause 4.6 of the BVLEP 2013 to seek a variation to the development standard (see Attachment 4).

Council, as the consent authority, may consider variations to development standards with the use of clause 4.6 of the BVLEP, provided the proposal:

a) demonstrates that compliance with the development standard is unreasonable and unnecessary in the circumstances of the case, and

b) demonstrates that there are sufficient environmental planning grounds to justify the contravention of the development standard.

Whether compliance with the standard is unreasonable or unnecessary

As outlined within the matter of Wehbe v Pittwater Council [2007] NSWLEC 827, it was established that in order to demonstrate that compliance with the development standard is unreasonable or unnecessary in the circumstances of the case, an applicant must demonstrate either of the following:

• the objectives of the development standard are achieved notwithstanding non-compliance with the standard; or

• the underlying objective or purpose of the standard is not relevant to the development; or

• the underlying objective or purpose would be defeated or thwarted if compliance was required; or

• the standard has been virtually abandoned or destroyed by the Council’s own actions in granting consents departing from the standard; or

• the zoning of land was unreasonable or inappropriate, such that the standards for that zoning are also unreasonable or unnecessary.

The applicant’s written request seeks to satisfy this requirement by demonstrating that the objectives of the development standard are achieved, notwithstanding the non-compliance. The applicant’s justification can be summarised as follows:

• The proposed dwelling house is compatible with the predominant form and scale of surrounding development on the low (north-eastern) side of Weemilah Drive, notwithstanding the height breach.

• The development will not generate any unacceptable residential amenity impacts with respect to overlooking, solar access and view lines and vistas, notwithstanding the height breach.

Council assessment staff concur with the applicant’s justification and conclude that the objectives of the development standard have been achieved for the following reasons:

• Existing development located on the north-eastern side of Weemilah Drive is characterised by 1-2 storey detached dwelling houses. The proposed dwelling house is two storeys in height and presents as a single storey building within the streetscape due to the slope of the land. Furthermore, the height of the development will be consistent with existing residential development on the north-eastern side of Weemilah Drive. For these reasons the development will be appropriate in the context of the predominant form and scale of surrounding development, consistent with objective (a) of clause 4.3 of the BLEP.

• Consistent with objective (b) of clause 4.3 of the BLEP, the proposed development will protect residential amenity, views, privacy and solar access, notwithstanding the non-compliance. This is demonstrated as follows:

o Living rooms and private open space on adjoining properties will maintain the required 3 hours of direct solar access on June 21 (winter solstice), in accordance with the Bega Valley Development Control Plan 2013 (BVDCP 2013).

o The elements of the proposed dwelling house that exceed the 7.5m height plane will not result in a loss of water views from surrounding properties. Council’s assessment of view sharing has concluded that the proposed development will achieve a reasonable view sharing outcome in accordance with BVDCP 2013 and having regard to the view sharing planning principles established within the NSW Land and Environment Court case of Tenacity Consulting v Warringah Council [2004] NSWLEC 140 (refer to Attachment 2).

o The elements of the building that exceed the 7.5m height plane do not give rise to adverse visual or acoustical privacy impacts.

Given the above, Council assessing staff consider that it has been demonstrated that compliance with the development standard is unreasonable or unnecessary in the circumstances of the case.

Whether there are sufficient environmental planning grounds to justify the contravention of the development standard

In the matter of Initial Action Pty Ltd v Woollahra Municipal Council [2018] NSWLEC 118, Preston CJ provides the following guidance (ref: paragraph 23) to inform the consent authority’s finding that the applicant’s written request has adequately demonstrated that there are sufficient environmental planning grounds to justify contravening the development standard:

‘As to the second matter required by clause 4.6(3)(b), the grounds relied on by the applicant in the written request under cl 4.6 must be “environmental planning grounds” by their nature: see Four2Five Pty Ltd v Ashfield Council [2015] NSWLEC 90 at [26]. The adjectival phrase “environmental planning” is not defined but would refer to grounds that relate to the subject matter, scope and purpose of the EPA Act, including the objects in section 1.3 of the EPA Act.’

Section 1.3 of the Environmental Planning and Assessment Act 1979 (EP&A Act) reads as follows:

(a) to promote the social and economic welfare of the community and a better environment by the proper management, development and conservation of the State’s natural and other resources,

(b) to facilitate ecologically sustainable development by integrating relevant economic, environmental and social considerations in decision-making about environmental planning and assessment,

(d) to promote the delivery and maintenance of affordable housing,

(e) to protect the environment, including the conservation of threatened and other species of native animals and plants, ecological communities and their habitats,

(f) to promote the sustainable management of built and cultural heritage (including Aboriginal cultural heritage),

(g) to promote good design and amenity of the built environment,

(h) to promote the proper construction and maintenance of buildings, including the protection of the health and safety of their occupants,

(i) to promote the sharing of the responsibility for environmental planning and assessment between the different levels of government in the State,

(j) to provide increased opportunity for community participation in environmental planning and assessment.

The applicant has submitted that the following site-specific environmental planning grounds to justify the variation to the height of buildings development standard:

• The proposed height variation is deemed to be minor given the context of the site.

• The proposed height variation will not generate any unacceptable adverse environmental impacts in respect of overlooking, overshadowing or view loss.

• Notwithstanding the proposed height variation, the development proposed remains consistent with the objectives of the height of buildings development standard and the R2 Low Density Residential Zone.

• The breach of building height relates to part of the north and north-eastern extent of the roof profile and façade, and directly relates to the existing ground surface levels and the proposed siting of the replacement dwelling, being closer to the rear boundary than that existing. In this instance, the levels drop substantially towards the northern (rear) boundary and the south-eastern (side) boundary and as such, it is the corresponding roof profile and part of the façade that breach the maximum building height.

• On the basis that the proposed height variation relates directly to the existing ground surface levels, the variation is noted to be variable – ranging between 0.160m up to 2.035m, equating to a variable non-compliance of between 2.13% and 27.13%.

• The siting of the proposed replacement dwelling has been deliberate so as to facilitate a compliant driveway gradient to the new attached garage and to rationalise the extent of earthworks. This outcome is deemed to be superior as it removes the long existing concrete driveway extending along the north-western property boundary and to the rear of the existing dwelling – accessing the ‘rear loaded’ garage from internal to the site. The increased front setback also allows for vehicles to be parked on the driveway in front of the garage, which is important noting that on-street parking is not available along most of Weemilah Drive due to its narrow reserve width of only 4.5m – 5m.

• The proposed height variation is not a deliberate attempt by the proponent to solely maximise views. Rather, the proposed roof profile and design has been used to create a modern, decorative element to the uppermost portion of the dwelling and to maximise daylight and sunlight penetration into the interior proportions of the dwelling. This is based on limiting window exposure to the adjoining neighbours to the northwest and southeast and by angling the roof profile to maximise north and north-eastern exposure.

• The development proposed will be without adverse environmental consequence and/or impact on existing service infrastructure.

Council assessing staff generally concur with the environmental planning grounds advanced by the applicant to justify the non-compliance. In particular, Council staff agree that:

• The height breach is only limited to portions of the roof nodules and the elements of building that exceed the height plane do not result in adverse environmental amenity impacts in terms of overlooking, overshadowing, visual bulk and view loss.

• The height exceedance is partially driven by the slope of the land, which slopes away from the front boundary towards the rear.

• The elements of the dwelling that exceed the height plane allow for the maximisation of sunlight as the highlight windows with a north-eastern aspect are included on the breaching elements of the building.

In this regard, the applicant’s written request has demonstrated that the proposed development is an orderly and economic use and development of the land, and that the structure is of a good design that will reasonably protect and improve the amenity of the surrounding built environment, thereby satisfying sections 1.3 (c) and (g) of the EP&A Act 1979.

Therefore, the applicant's written request has adequately demonstrated that there are sufficient environmental planning grounds to justify contravening the development standard as required by clause 4.6(3)(b).

Bega Valley Local Development Control Plan 2013 (BVDCP 2013)

The development has been assessed in accordance with the relevant sections of the BVDCP 2013. The relevant sections are detailed in Attachment 1. The development is considered to meet the relevant sections of the BVDCP 2013, subject to the recommended conditions contained within Attachment 2.

Options

1. Approve the development application subject to the conditions of consent provided in Attachment 2. This is the recommended option.

2. Defer consideration of the matter and request a separate report identifying any relevant Section 4.15 matters for consideration and draft reasons for refusal.

3. Defer consideration of the matter and seek an alternative design that complies with the provisions of BVLEP 2013 height of building.

Community and Stakeholder Engagement

Engagement undertaken

The development application was notified to adjacent and adjoining owners for 14 days in accordance with Council’s Community Participation Plan (which forms part of Council’s Community Engagement Strategy) from 24 November 2023 to 8 December 2023. The application received 5 submissions during the notification period.

A copy of each submission has been provided to Councillors via the Councillor portal.

The issues raised are detailed in the Assessment Report included as Attachment 1 of this report. The key issues raised in the submissions include:

• View loss from private property

• Building height non-compliance

• Retaining Wall / Battering of the site

• Stormwater management

• Overshadowing of adjoining properties

• Overlooking of adjoining properties

• Removal of boundary fencing

Inspections were undertaken from the premises who submitted submissions to review issues associated with view loss from private property, building height non-compliance, overshadowing and overlooking of adjoining properties.

Upon site inspections and consideration of the applicable matters detailed under BVLEP 2013 and BVDCP 2013, it is assessed that the matters raised within the public submissions are not considered to be of a significance that would warrant refusal of the development application or a further redesign. It is noted that suitable conditions have been recommended where appropriate to resolve various issues, in particular those pertaining to the retaining walls and battering of the site, stormwater management, overlooking and the retention of boundary fencing.

The impacts in relation to the building height non-compliance, view loss from private properties and overshadowing of adjoining properties are assessed as being acceptable.

Stakeholder Engagement

The development has also been referred to Essential Energy for review and comment.

Essential Energy have raised no objections in relation to the development and have provided a number of recommendations, which are included as recommended conditions of consent which are proposed to be included.

Engagement planned

All those persons who made submissions will be notified of the determination of the development application.

Financial and Resource Considerations

Assessing proposals for development is part of the regular business of Council and resourcing to undertake this function is included in Council’s adopted budget.

Legal /Policy

Should Council resolve to refuse the application, the applicant has appeal rights to the Land and Environment Court under the provisions of the Environmental Planning and Assessment Act 1979.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The development will provide for the housing needs of the community within a low-density residential environment.

Environment and Climate Change

This application, if approved, will not have any additional adverse impacts on the environment or climate change with the development meeting the provisions of State Environmental Planning Policy (Sustainable Buildings) 2022. Any vegetation required to be removed would be existing landscaped gardens.

Economic

The impacts of the development on the economy are considered minor. It is considered that utilising the same building footprint, is not the best economic use of the land, as envisaged by the Residential Land Strategy and therefore the proposed development is suitable for the reasons outlined in this report.

Risk

The assessment of development is a core function of Council. There are no material impacts on Council’s operations associated with determination of the proposed development. Refusal of the development application could be subject to an appeal in the Land and Environment Court, which would have cost implications to defend Council’s position.

Social / Cultural

This application, if approved, will improve the existing housing stock within the Bega Valley Shire.

Attachments

1 ⇩. Section 4.15 Assessment Report

2 ⇩. Draft Conditions of Consent

3 ⇩. Proposed Development Plans

4 ⇩. Clause 4.6 Variation to Height Request from Applicant

Council 27 November 2024

Item 8.2

8.2. Endorsement of Minor Amendments Planning Proposal

This report seeks a resolution of Council to support a planning proposal for minor amendments to the Bega Valley Local Environmental Plan 2013.

Director Community Environment and Planning

Officer’s Recommendation

That Council:

1. Support a planning proposal to implement several minor amendments to the Bega Valley Local Environmental Plan 2013.

2. Authorise Council officers to submit the planning proposal (Attachment 1) and supporting information to the Department of Planning, Housing and Infrastructure requesting a Gateway Determination under Section 3.34 of the Environmental Planning and Assessment Act 1979.

3. Authorise Council officers, subject to the conditions of the Gateway Determination (including public exhibition) and providing no substantial changes to the planning proposal are required and no objections are received during exhibition, to progress the planning proposal to finalisation and gazettal without a further report to Council.

Executive Summary

This report seeks Council’s resolution to support a planning proposal to make minor amendments to the Bega Valley Local Environmental Plan 2013 (BVLEP 2013). These proposed amendments have no significant or strategic impact and are considered suitable for inclusion in a ‘minor amendments’ planning proposal.

This Council initiated planning proposal (Attachment 1) results from the need to amend BVLEP 2013 to update references, correct omissions and make several minor administrative amendments regarding:

· property references and zones

· permissible uses and approval pathways

· the heritage schedule

· changes to clauses to protect the environment, amenity and character.

Background

The planning proposal aims to:

1. Amend the property description for a heritage listing at Parrabel St, Bega due to subdivision of land

2. Remove a heritage listing from 8 Bermagui Rd, Cobargo due to demolition

3. Add a heritage listing to 663 Benny Gowings Rd, Murrah at the owner’s request

4. Zone David Whaling Station Historic Site C1 National Parks and Nature Reserves

5. Remove zone RU1 Primary Production from land in Warbler Circuit, Bega following residential subdivision

6. Ensure privately managed facilities on leased Crown lands are correctly zoned RE2 Private Recreation

7. Limit small lot community title subdivisions in the R3 Medium Density Residential zone to encourage housing diversity

8. Apply a minimum lot size for manor houses and terraces in R2 Low Density Residential and RU5 Village zones to protect neighbourhood amenity and character from adverse development impacts

9. Allow subdivision to create first title resulting from Council-owned road closures as exempt development to streamline road closures processes

10. Permit cemeteries in C3 Environmental Management zone to ensure consistent application across other non-urban areas

11. Permit self-storage units in E4 General Industrial zone to rectify an error

12. Permit co-living housing in R2 Low Density Residential zone to encourage housing diversity

13. Require Council approval for agritourism in C2 Environmental Conservation zone to protect water quality in oyster catchments

The rationale and impact of each change is explained in the planning proposal (Attachment 1).

Strategic merit assessment criteria

The planning proposal:

· is not inconsistent with the South East and Tablelands Regional Plan 2036

· is not inconsistent with the Bega Valley Shire Local Strategic Planning Statement

· does not respond to a change in circumstances that has not been recognised by the existing planning framework.

Site-specific merit assessment criteria

The planning proposal does not include provisions that will unreasonably:

· increase the likelihood of additional impacts on the natural environment or other affected land

· increase the likelihood of additional impacts to existing uses, approved uses, and likely future uses of land in the vicinity

· impact services and infrastructure that are or will be available to meet demand.

This planning proposal is the seventh minor amendments (or housekeeping) planning proposal prepared by Council since the gazettal of BVLEP 2013.

Options

This report recommends that Council support the planning proposal to make minor, but important amendments to BVLEP 2013. These changes are important to ensure that BVLEP 2013 meets the requirements of landowners, the wider community and Council’s strategic directions.

Council could choose to not make these changes and the error, omissions, inconsistencies and issues would remain as there is no other avenue to make the proposed changes other than through the planning proposal process.

Community and Stakeholder Engagement

Engagement undertaken

No community consultation has yet been undertaken, however, Council staff have had conversations with property owners regarding the proposed amendments to the heritage schedule and re-introduction of self storage units to the E4 General Industrial zone.

Engagement planned

Community consultation for this planning proposal will be consistent with the requirements of the Bega Valley Shire Community Engagement Strategy, being a minimum exhibition timeframe of 28 days or as specified by the Gateway Determination.

Public exhibition of the planning proposal will include notification on Council’s website.

Should agency or community feedback be received that warrant substantial changes to the planning proposal, a further report will be prepared for Council outlining the submissions received and any changes to the planning proposal recommended in response to those submissions prior to resolving whether to proceed with amending BVLEP 2013.

If no objections to the planning proposal are received and no substantial changes are required to the planning proposal, it is recommended that Council resolve to authorise staff to proceed to finalise the proposed amendments to BVLEP 2013.

Financial and Resource Considerations

The processing of the planning proposal and its public exhibition will be undertaken as part of Council’s regular work program.

Legal /Policy

The planning proposal has been prepared in accordance with Section 3.33 of the Environmental Planning and Assessment Act 1979 and the NSW Department of Planning and Environment’s Local Environmental Plan Making Guideline (August 2024).

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The planning proposal is consistent with the South East and Tablelands Regional Plan 2036, Bega Valley Community Strategic Plan 2024, and the Bega Valley Shire Local Strategic Planning Statement.

Environment and Climate Change

The planning proposal is largely administrative in nature and will not materially increase the risks associated with climate change or result in any significant impacts on the environment. The proposed amendment to the approval pathway for agritourism development in the C2 Environmental Conservation zone will ensure potential impacts on riparian areas and water quality are adequately addressed.

Economic

The planning proposal is largely administrative in nature and will not result in any significant positive or negative economic impacts.

Risk

The planning proposal seeks to address a broad range of risks to Council and the broader community by correcting an error, removing inconsistencies, ensuring that certain desirable land uses are permitted with consent, and reducing the risk of impacts to water quality in oyster catchments from unregulated agritourism development.

Social / Cultural

The planning proposal is largely administrative in nature and will not result in any material positive or negative social or cultural impacts.

Attachments

1 ⇩. Minor Amendments Planning Proposal 2024

Council 27 November 2024

Item 9.1

9.1. Request for Tender (RFT) 2425-010 Bemboka Reservoir Renewal

This report outlines the evaluation of Request for Tender RFT 2425-010 for the replacement of the existing Bemboka water reservoir and recommends negotiation with the preferred tenderer prior to awarding a contract.

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 enter into negotiations 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 in relation to tender RFT 2424-010.That all tenderers be advised of Council’s decision.

Executive Summary

This report evaluates RFT 2425-010 which seeks appropriate tenders for the replacement of the existing bolted-steel water reservoir at Bemboka. The tender seeks a qualified contractor to construct a new reservoir adjacent to the existing structures, with an optional provision for the demolition of the two existing reservoirs.

The reservoir is crucial infrastructure as it stores and supplies water to the township of Bemboka, however it has now reached the end of its serviceable life. The height requirement of the tank poses specific challenges in construction hence tenderers had an open brief to provide suitable compliant solutions.

All tender submissions have been assessed according to Council’s procurement criteria, with detailed evaluations provided in the attached confidential memo. After thorough review, a preferred contractor has been identified for the project.

Background

In 1988, Bemboka Reservoir 2 was constructed to replace Bemboka Reservoir 1. Reservoir 2 is a 430 kilolitre, 15m high tank with an anticipated design life of 25 years. It is currently operational and has been in service for approximately 36 years. The height of the tank is necessary to ensure that the pressure requirements of the town are met. Reservoir 1, a small unroofed concrete tank, is not able to supply water to the town due to lack of hydraulic pressure.

In 2019, Reservoir 2 was found to be leaking and corroding significantly on the outer surface. After the attempts to seal the leak in May 2020 were found to be ineffective, a formal condition assessment was conducted in February 2021. The inspection found significant corrosion inside the tank and it was concluded that the reservoir had reached the end of its serviceable life. A bypass system was installed in 2022 to mitigate the risk of tank failure and enable isolation of the tank.

Council sought tenders for the design and construction of a replacement tank, which is proposed to be built adjacent to the existing Reservoir 2. The location was chosen so that the existing reservoir could remain online during the construction of the new tank, minimising disruption to the water supply of Bemboka. Due to the specific height requirement, the scope allowed submissions for various tank construction types (e.g. steel, concrete, water tower), allowing Council to assess which type would be best for long term reliability and value. Additionally, Council requested provisional pricing for the demolition of both Reservoir 1 and Reservoir 2, as maintaining these decommissioned reservoirs would result in unnecessary costs and safety risks.

Tenders were advertised on the NSW Government eTendering system and local newsletters. Tenders were open from 27 August 2024 and closed on 01 October 2024. There was a non-mandatory site meeting conducted on 11 September 2024.

Five conforming tenders were received by the due date, supplemented by three non-conforming tenders. The tender evaluation was carried out in accordance with the Tender Evaluation Plan using a weighted scoring of 50% price and 50% non-price criteria. A preferred tenderer was identified in this process.

Options

Staff have considered several options which are presented below:

1. Enter contract negotiations with the preferred tenderer to construct a new bolted-steel reservoir (either glass-fused-to-steel (GFS) or fusion-bonded-epoxy (FBE)) and demolish both existing Reservoir 1 and Reservoir 2 (Recommended).

This option ensures a reliable water supply for Bemboka while eliminating the ongoing maintenance costs and negative visual impact of the decommissioned reservoirs. Council intends to enter contract negotiations to explore an FBE tank as a potential option which may result in cost savings when compared to a GFS tank. Demolition poses some challenges due to the proximity of power lines; however, further investigations will be conducted regarding potential power outages. Councillors and the community will be informed of any findings before work begins.

2. Enter a contract to construct a new steel reservoir and retain the two existing reservoirs (Not Recommended).

Even when decommissioned, the existing reservoirs would still require costly maintenance to preserve their structural integrity. Retaining them presents significant safety risks and would create an undesirable visual impact by having three reservoirs on the same site which is visible from the main road. Since these tanks would no longer serve a function, it would be in the Council’s best interest to proactively remove decommissioned assets, promoting a more positive visual outcome.

3. Enter a contract to construct a new concrete reservoir and demolish both existing Reservoir 1 and Reservoir 2 (Not Recommended).

A net present value (NPV) analysis comparing a 100-year concrete tank to a 50-year steel tank shows that, even after replacing the steel tank at 50 years, the concrete option remains approximately $500,000 more expensive in current value. This additional cost for the concrete tank would be manageable within a 50-year budget. However, choosing concrete would still need to be justified by benefits such as alignment with the Council’s existing concrete reservoirs, which would streamline maintenance schedules across assets. Additionally, concrete offers a better surface for potential community artwork, if the township of Bemboka decides to pursue this.

4. Do nothing (Not Recommended).

The current tank was assessed in 2021 as having reached the end of its serviceable life. It poses a high risk of failure, which would severely disrupt Bemboka’s water supply and result in emergency procedures to maintain water supply for an extended period.

Community and Stakeholder Engagement

Stakeholder Group

Internal/External

Level of Engagement

Water and Sewer Services – Assets

Water and Sewer Services – Maintenance

Water and Sewer Services – Network Operations

Water and Sewer Services – Treatment Operations

Internal

Involve

General Public

External

Inform

Engagement undertaken

Council has previously engaged with the community in relation to the proposal to construct a new reservoir. Nearby residents were informed via letter drop that Council was inviting tenders for the construction of a new reservoir. The letter also included information on why this project is necessary and when works are expected to start. There have been no negative responses or feedback received by Council.

Notification of the tender was also included in the BVSC Business newsletter dated 30 August 2024

Engagement planned

Once the tender has been awarded, a second round of communication will be issued via letter drop to all residents informing them of the result of the tender and project information such as type of tank, timeframes, and any potential disruptions expected. This information will also be made available via a project page on Council’s website and media posts, along with updates as the project reaches important milestones. Additionally, residents will be contacted via letter drop prior to any disruptive activities once the specific dates are known.

Financial and Resource Considerations

Item	$ Excl GST
Expenditure Detail
Contract Price	Refer to Confidential memo
Provisional Sum	Refer to Confidential memo
Contingency	Refer to Confidential memo
Total Expenditure	Refer to Confidential memo

Source of Funds
Allocated project budget	$614,000.00
Water and Sewer Services – Water Fund	Refer to Confidential memo
Total income available
Project funding shortfall	Refer to Confidential memo

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts	$ Excl GST
Capital Investment \| Renewal	Refer to Confidential memo
Depreciation costs	The new asset will be depreciated over 50 years

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

Renewing this existing service is related to the following actions and/or activities contained within Council’s Delivery Program 2022-25 and Operational Plan 2024-25 respectively:

DP C.1.1 Operate a contemporary local water utility that enables sustainable development, supports social wellbeing and protects the environment.

OP C.1.1.2 Operate and maintain water supply and sewage network systems to meet health and environmental regulatory requirements and level of service objectives.

Environment and Climate Change

A formal Review of Environmental Factors (REF) has been initiated for the project with measures identified to protect the environmental values of the area during construction. In addition, the proposed new reservoir will:

· Improve water storage efficiency and operations by minimising water loss currently occurring by leaks in the current tank.

· Enhance long term resilience to climate change by providing a reliable water supply during dry spells or bushfires, reducing our vulnerability.

Economic

Selecting a high-quality reservoir manufacturer and the use of durable materials will reduce the frequency and cost of repairs, inspections, and routine maintenance over time, leading to significant long-term savings for Council.

The proposal will have an immediate economic benefit during construction. The preferred tenderer has committed to using several local suppliers and subcontractors. This will promote jobs in the area as well as exposing local people to specialist skills, technologies and experience in the water treatment industry.

Risk

The current tank is failing and poses a high risk to operation. While attempts have been made to repair the tank, it is now necessary to construct a replacement. This project will mitigate the high risk of tank failure which poses significant operational risks.

Social / Cultural

The proposed new reservoir will have positive social impacts through improvement to the security of the Bemboka water supply and visible improvements to our infrastructure.

Cultural heritage matters have been assessed as part of the REF process.

Attachments

1 . Confidential memo RFT-2425-010 Bemboka Reservoir (Confidential - As this attachment contains commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret as per Section 10A(2)(d) of the Local Government Act 1993.

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

Council 27 November 2024

Item 9.2

9.2. Waste Grants Program FY 2025-26 to FY 2028-29

This report is seeking approval of scope and funding for the next term of the Waste Grants Program from Council.

Director Assets and Operations

Officer’s Recommendation

That Council approve the Business Case for the proposed Waste Grants Program for Financial Years 2025-26 to 2028-29.

Executive Summary

Council’s current Waste Grants Program was funded for three years up to Financial Year 2024-25. Further funding approval is required to continue the program.

Grant funding enhances the efforts of community members and volunteers as they work across the Shire to deliver projects, activities and events which benefit the community and which Council alone could otherwise not deliver. By providing waste and resource recovery-based grants, recipients who can demonstrate value for money using measures such as volunteer hours, co-funding or tonnes of waste diverted, assist Council in achieving its overall aims of increased community-led waste diversion and innovative approached to resource recovery.

A detailed business case has been developed to continue Council’s Waste Grants Program into the future. The recommended option is to streamline and restructure the program to improve governance and administration, whilst achieving Council’s waste and resource recovery objectives.

Background

Council’s Waste Grants Program has been providing funding to eligible applicants under five streams:

· Small Waste Grants

· Community Waste Minimisation Grants

· Waste Wise Events Grants

· School Waste Program

· Let’s Get It Sorted Program (directly funding Bournda Environmental Education Centre)

Program costs were budgeted at $118,912 excluding GST in Financial Year 2024-25. This amount included $19,052 towards salary and wages for Council’s Grants Administration Officer. The existing program is deemed to have run its course and usually does not expend all its budget under the program.

The recommended option reduces the funding budgeted to the program overall, whilst maintaining the most valued and impactful elements (as observed by Council staff and supported by community survey data) to limit public pushback on financial expenditure vs reduced services.

Options

The recommended option is to revitalise the Waste Grant Program per the “Scope – Proposed Program Structure” Section. This would see a reduction of approximately $20,000 per annum in overall funding under the program, and refine the scope to three streams:

· Clean-up Grants

· Waste Prevention and Innovation Grants

· School Waste Education Program

A do-nothing option would involve completely defunding and ceasing the program of waste grants.

An alternative option would be to continue the Waste Grants Program under its current structure and funding guidelines.

Community and Stakeholder Engagement

The impact and reach of the Waste Grants Program were assessed using the AIP2 Framework. The whole program can be considered to have moderate community impact, and moderate community scale, in large part due to the reach of the School Waste Education Streams. This involves a responsibility to “Inform – Consult – Involved – Collaborate”.

Assessing only those streams with more significant change, the community impact is assessed as being moderate, with lower community scale. This involves as responsibility to “Inform – Consult”.

The proposal has been socialised internally and externally with most relevant stakeholders.

Engagement undertaken

As the Grant Administration Officer provides support to other areas of Council, notably the Environment Team, and works under the Corporate Planning and Improvement department, they have been consulted in the development of this business case.

The community was broadly engaged through the “Waste Service Review and Customer Satisfaction Survey” with results strongly in favour of ongoing waste education. Whilst waste grants did not record high levels of engagement or satisfaction as a service area, the grants are a means of achieving education and prevention and diversion outcomes, all of which scored strongly in community desire for Council action.

Bournda Environmental Education Centre have been consulted on the proposed changes to the School Waste Education Program. A formal response in support of the School Waste Education Program is attached.

Some local events stakeholders have been consulted with generally positive comments however there are still some reputational risks.

Engagement planned

The most impactful change is in ceasing the Waste Wise Events Grants Stream. There are several notable applicants each year.

· Eat Merimbula Festival

· Yuin Folk Festival

· Cobargo Show

· Bega Show

· Candelo Village Festival

Should the recommended option be approved, Council’s waste team will contact the organisers for each event and explain the change in grant streams, and how they may still apply for funding under the Waste Prevention and Innovation Grants Stream.

Broader community engagement will be undertaken via clear communication on Council’s website and usual communications channels, and through the grant application process. The Grants Administration Officer will provide information to regular grant recipients via direct email prior to the next grant round opening.

Financial and Resource Considerations

Funding is sourced from waste revenue and does not rely on General Funds. A small grant attribution is received from the Canberra Region Joint Organisation (CRJO) waste education funding but is reported and managed separately. The figures provided below are annual costs for year one of the program, which will be adjusted annually per the business case for the program duration.

Item	$ Excl GST
Expenditure Detail
Attribution toward grant administration	$19,052 subject to annual remuneration review
Waste Grants Program	$30,750 subject to annual review
School Waste Education Program	$48,500 subject to annual review
Total Expenditure	$98,302 subject to annual adjustments

Source of Funds
Waste Fund	$98,302
CRJO Waste Education Funding	$4,300
Total income available	$98,302 subject to annual budget adoption
Project Funding Shortfall	$0

Legal /Policy

Council manages its grant programs aligned to the NSW Governments best practice guidelines and templates for grant funding agreements, creating a legally binding framework that makes clear the responsibilities of grantors and grantees.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Providing grant funding for waste and resource recovery activities aligns with the Community Strategic Plan.

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

C.3. Collaborate with partners and our community to support innovative approaches to waste minimisation and increase reuse and recycling opportunities.”

NSW state targets, set in support of the National Waste Policy Action Plan, aim to reduce total waste generated per person by 10% by 2030, have an 80% average recovery rate from all waste streams by 2030 and to halve the amount of organic waste sent to landfill by 2030.

Environment and Climate Change

The funding enhances the efforts of community organisations and volunteers in delivering waste-related projects, activities and events which benefit the whole of the community with a focus on sustainable living, education, minimisation and diversion.

By providing a waste and resource recovery-based grant, recipients who can demonstrate value for money using measures such as X numbers of volunteer hours, $Y of co-funding or Z tonnes of waste diverted, assist Council in achieving its overall aims of increased community-led waste diversion and innovative approaches to resource recovery.

Economic

The recommended grants program provides financial relief for organisations undertaking a cleanup of public reserves or assisting people with complex hoarding behaviours. They may also seed fund innovative approaches to waste management and prevention of waste.

Risk

Several risks have been identified in the Business Case and are described below.

1. Reputation: The provision of grants may be considered a service of Council, and any change or ceasing of grant programs may attract criticism and reputational damage. This proposal seeks to minimise this risk by providing clear continuity in outcomes and funding eligibility from the previous grant framework. Event organisers are most affected by the change; however, events of all kinds are eligible to apply under the Waste Prevention and Innovation stream for activities that meet the purpose of addressing a waste issue by demonstrating prevention, minimisation, diversion, education and/or innovation.

2. Financial: Any financial transaction risks fraud or misuse. This risk is minimised by clear eligibility criteria for applicants and project activities. Evidentiary requirements for expenditure are still necessary to claim funding. Reporting is streamlined so it is appropriate to the amount of funding offered.

3. Safety and inclusion: Council liability is mitigated by adopting the NSW Governments best practice guidelines and templates for grant funding agreements, creating a legally binding framework that makes clear the responsibilities of grantors and grantees.

Social / Cultural

Educational activities, community events and public art that focus on waste themes are eligible for funding under the proposed program.

Attachments

1 ⇩. Community Waste Grants Business Case 2025-2028

2 ⇩. BEEC Feedback to BVSC 2025 Grant Framework Proposal

Council 27 November 2024

Item 9.3

9.3. Request for Tender (RFT) 2324-064 Brogo Tank 2 Replacement

This report outlines the evaluation of Request for Tender (RFT) 2324-064 for the replacement of the existing Brogo Tank 2 water reservoir and recommends award of a contract to the preferred tenderer.

Director Assets and Operations

Officer’s Recommendation

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

2. That Council accept the tender from xxxx in relation to the contract for the works described in in RFT 2324-064, in the amount of $xxx (incl. GST), subject to variations and provisional sums.

3. That authority is delegated to the Chief Executive Officer to execute all necessary documents in relation to tender RFT 2324-064.That all tenderers be advised of Council’s decision.

Executive Summary

This report evaluates RFT 2324-064 which seeks to replace the Brogo Tank 2 (BT2) concrete water reservoir.

Water and Sewerage Services have sought a qualified contractor to demolish the existing reservoir and construct a new concrete reservoir in the same location. BT2 is crucial infrastructure as it supplies water to the Brogo-Bermagui water system and its current structural condition poses challenges and risks. Despite attempts to rehabilitate the tank, it is no longer considered a viable option. Consequently, a replacement tank is considered a more durable option which presents lower long-term risks. A new concrete reservoir will provide the most beneficial and secure outcome for the Brogo-Bermagui water supply system.

All tenderer submissions have been assessed according to Council’s procurement criteria, with detailed evaluations provided in the attached confidential memo. After thorough review, a preferred contractor has been identified for the project.

Background

The Brogo Tank 2 (BT2) is a reinforced concrete reservoir constructed in 1985 and has been in service for approximately 40 years. If built to current standards, concrete reservoirs are designed to last 80-100 years with proper maintenance. BT2 was constructed pre-1988, before durability clauses were first introduced to the Australian Standard for Concrete Structures (AS 3600). These clauses were designed to ensure that concrete structures would have a longer service life by addressing factors such as exposure to environmental conditions, material quality, and construction techniques. Despite this, Council owns other pre-1988 built reservoirs that remain operational and are not scheduled for replacement. While the exact cause of failure for BT2 is difficult to determine, poor construction methods are likely a key contributing factor. Built at a similar time, Brogo Tank 1 (BT1) also prematurely reached the end of its expected service life and was replaced as part of the Brogo Water Treatment Plant project in 2021.

Structural degradation of the tank has been observed by operational staff over several years and was confirmed in two independent specialist reports completed in 2019. A bypass system was installed in 2022 to mitigate the risk of tank failure and enable isolation of the tank. Rehabilitation work was initiated in November 2023 under contract RFQ-2223-103 however only a portion of the contract was able to be completed as further issues were found in the internal joint material.

Subsequently, Council sought updated quotes for removal of existing joints and alternative methods for internal joint repairs. The revised costs were substantial and the proposed rehabilitation works would only extend the tank’s life by an estimated 20 years. The success of the repairs was also dependant on the soundness of the existing materials and accuracy of assumptions regarding the tank’s points of failure.

The high cost of rehabilitation, combined with uncertainty regarding its effectiveness, poses a significant risk. There is a strong possibility that after 20 years, either a new tank would need to be built or further costly repairs would be required. A replacement tank was determined as a more viable long-term solution. Since BT2 is within NSW State Forest, the existing tank must be demolished, and new tank built in the same location.

The current tank is approximately 1.6 megalitres (ML) capacity while the proposed replacement will have a reduced capacity of 1.0ML. A population study determined that the current capacity is significantly oversized and a 1.0ML operating capacity would be more than sufficient for the forecasted growth for the service life of the tank. This reduced size option will result in cost savings while continuing to provide long-term supply to the Brogo-Bermagui system.

Tenders were advertised on the NSW Government eTendering system and local newsletters. Tenders were open from 30 August 2024 and closed on 04 October 2024. There was a non-mandatory site meeting conducted on 11 September 2024.

Six conforming tenders were received by the due date. The tender evaluation was carried out in accordance with the Tender Evaluation Plan using a weighted scoring of 50% price and 50% non-price criteria. A preferred tenderer was identified in this process.

Options

1. Enter a contract with the preferred tenderer to demolish the existing reservoir and construct a new reinforced concrete reservoir in the same location (Recommended).

This option ensures a reliable water supply for the Brogo-Bermagui system while eliminating risk of costly repairs and risk of asbestos contamination.

2. Do repair work only (Not Recommended).

The rehabilitation of the reservoir would be complex, expensive and would not extend the life of the structure sufficiently to be worthwhile.

3. Do nothing (Not Recommended).

The current tank was assessed in 2021 as having reached the end of its serviceable life. It poses a high risk of failure, which would put unnecessary strain on the existing bypass assembly for an extended period.

Community and Stakeholder Engagement

Stakeholder Group

Internal/External

Level of Engagement

Water and Sewer Services – Assets

Water and Sewer Services – Maintenance

Water and Sewer Services – Network Operations

Water and Sewer Services – Treatment Operations

Internal

Involve

General Public

Forestry Corporation of NSW

External

Inform

Consult

Engagement undertaken

Council has consulted the Forestry Corporation of NSW (FCNSW) for the purpose of sourcing a permit for Council, subcontractors, and sub-consultants to access and complete works within Cowarra State Forest. The permit includes the already installed bypass system and the proposed demolition and construction of the new reservoir.

As this is an internally driven project for essential infrastructure, there has not been any engagement with the general public as of yet.

Internal stakeholders from Water and Sewer Services have had ongoing involvement through the repair works and defining the project scope for the new reservoir.

Engagement planned

Council will engage with FCNSW with further details of the nature of works, access plans and machinery that are to be used as well as notice when work is timed to commence on site. Council will continue to promulgate any further information, clarification or approvals that may be required as the works progress.

General public engagement planned for the next phase of the project includes informing the residents and broader community via periodic media releases and updates to a project page on Council’s website.

Ongoing involvement will occur throughout the project duration with the internal Water and Sewer Services teams.

Financial and Resource Considerations

This project was started several years ago as a major repair to BT2 and approximately $100k was expended in the abortive repair due to excessive damage and asbestos content in the tank fabric and joints. A new project budget was set based on best estimates of costs and similar projects for full replacement.

Item		$ Excl GST
Expenditure Detail
Contract Price		Refer to Confidential memo
Provisional Sum		Refer to Confidential memo
Contingency		Refer to Confidential memo
Total Expenditure		Refer to Confidential memo

Source of Funds
Allocated project budget		$1,080,000.00
Water and Sewer Services – Water Fund		Refer to Confidential memo
Total income available
Project funding shortfall		Refer to Confidential memo

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts	$ Excl GST
Capital Investment \| Renewal	Refer to Confidential memo
Depreciation costs	The new asset will be depreciated over 100 years

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

The proposed new reservoir relates to the following actions and/or activities contained within Council’s Delivery Program 2022-25 and Operational Plan 2024-25 respectively:

DP C.1.1 Operate a contemporary local water utility that enables sustainable development, supports social wellbeing and protects the environment.

OP C.1.1.2 Operate and maintain water supply and sewage network systems to meet health and environmental regulatory requirements and level of service objectives.

Environment and Climate Change

A formal Review of Environmental Factors (REF) has been completed for the project outlining measures to protect the environmental values of the area during construction. In addition, the proposed new reservoir will:

· Improve water storage efficiency by minimising water loss currently occurring by leaks in the current tank.

· Enhance long term resilience to climate change by providing a reliable water supply during dry spells or bushfires, reducing our vulnerability.

· Remove the risk of contamination of asbestos to our water supply by safely removing the existing reservoir.

Economic

Constructing a new quality concrete reservoir will reduce the frequency and cost of repairs, inspections, and routine maintenance over time, leading to significant long-term savings for Council.

Risk

The project mitigates the risks of failure, contamination, or water shortages due to aging infrastructure. It will also provide enhanced safety with a structurally sound reservoir.

Social / Cultural

The proposed new reservoir will have positive social impacts through improvement to the security of the Brogo-Bermagui water supply and visible improvements to our infrastructure.

Attachments

1. Confidential memo RFT-2324-064 BT2 Reservoir (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 27 November 2024

Item 9.4

9.4. Regional Airport Program Round 4 (RAP4) Application

This report relates to a Regional Airport Program Round 4 (RAP4) application for the second stage of runway starter extensions for the Merimbula Airport and Council’s options to source funds for biodiversity offsets and a grant co-contribution for this project.

Director Assets and Operations

Officer’s Recommendation

1. That Council notes that on 18 November 2024 Bega Valley Shire Council submitted a Regional Airport Program Round 4 (RAP4) application for $4 million to partially fund the $10 million Merimbula Airport runway starter extensions project, stage two.

2. That Council endorses Council officers to:

· Approach the NSW Government to fully fund the required co-contribution.

· Review Council’s LTFP to identify lower priority projects that can be delayed or withdrawn, and these funds be reassigned to this co-contribution and provide a further report to Council outlining these options

3. Should sufficient grant or redirected funds not be available, that Council endorses

termination of the $10 million Merimbula Airport runway starter extensions project stage two, and withdrawal of the RAP4 application for this project.

Executive Summary

On 18 November 2024 Bega Valley Shire Council submitted a Regional Airport Program Round 4 (RAP4) application for $4 million to partially fund the estimated $10 million Merimbula Airport runway starter extensions project, stage two. Should Council be successful in its application for $4 million, under the RAP4 funding agreement the Australian Government requires that Council source a 1:1 co-contribution for this grant. In addition, Council would also need to fully fund the $2 million in biodiversity offsets as this is not eligible for grant funding in this program giving a total $6 million liability.

The Council endorsed Merimbula Airport Masterplan 2043 includes the two-stage lengthening of the Merimbula Airport runway starter extensions. The first stage delivered 120m starter extensions at both ends of the runway and increased the total available take-off runway length from 1,602m to 1,721m. The second stage of 80m runway extensions at both ends of the Merimbula Airport runway will increase the total available take-off runway length to 1800m and deliver a total of 2000m of sealed runway pavement.

There is always much conjecture of when the RPT fleet will transition and what it will transition to in the future and as indicated by the Masterplan 2043, should the Merimbula Airport runway not be extended, its commercial operation will very likely become increasingly marginal as the use of smaller RPT aircraft is phased out and they are replaced by larger aircraft such as 737 Max 8 or Airbus 320 that require longer runways.

While certainly not needed today while smaller aircraft are operating, these ultimate extensions go some way to safeguarding the future viability of RPT operations at Merimbula Airport and in order to comply with the conditions of its approved Development Application which expires in December 2027, the second stage of runway starter extensions must be completed by December 2030.

Background

On 12 June 2024 Council resolution 9.1 endorsed the Merimbula Airport Masterplan 2043 including the ultimate lengthening of the Merimbula Airport runway starter extensions.

The first 120m extensions were delivered in April 2022 for $5.4 million. The second stage of 80m extensions is estimated to cost in the region of $10 million including biodiversity offsets and is proposed to be partially funded via a yet to be determined RAP4 application to the Australian Government.

The second runway starter extension will provide the 1,800 m long take-off runway needed by large narrow-body (180-200 seat) aircraft such as the Boeing 737 Max 8 and Airbus A320neo, to increase the range of destinations available to RPT operators, increase airline operational flexibility and improve emergency services operations by enabling larger aerial firefighting tanker aircraft to use Merimbula Airport. Of comparable NSW regional airports, only Dubbo and Wagga Wagga have runway lengths less than 1,800 m.

The Development Approval (DA 2019.0359) for these extensions was issued in December 2022 and stipulated that the stage two extensions must be operational within eight years, that is December 2030. Due to the environmentally sensitive location of the Merimbula Airport, this delivery deadline must allow for approval of permits from, for instance, the Department of Primary Industry Fisheries and the agreement & procurement of legislated biodiversity offsets.

If the DA lapses, it is highly probable that approval of a new Environmental Impact Statement (EIS) and obtaining a replacement DA and required permits will be far more difficult and potentially make a future runway starter extensions project untenable.

Should the Merimbula Airport runway not be extended, its commercial operation will become increasingly marginal as the use of smaller RPT aircraft is phased out and they are replaced by larger aircraft that require longer runways.

On 18 November 2024 Council officers submitted a RAP4 application for the $8 million Merimbula Airport runway starter project extensions stage two and if Council is successful, under the RAP4 funding agreement the Australian Government requires a 1:1 co-contribution sourced by Council of $4 million and will not fund the estimated $2 million cost of biodiversity offsets for the project.

Options

A primary contingent issue for Council’s endorsement of the RAP4 application for the $10 million runway extensions to Merimbula Airport is expected to be that, should the application be successfully determined, Council’s arrangements for a $4 million co-contribution to this project grant and $2 million for biodiversity offsets.

In order of preference, these are recommended sources for this co-contribution:

· To seek this project co-contribution from the NSW Government.
After preliminary discussions, Council has obtained letter of support from Transport for New South Wales (TfNSW) for the RAP4 grant.

· Review of the LTFP to identify any potential maintenance and capital savings noting this is unlikely.

· Review of the LTFP to identify lower priority projects that could delayed or withdrawn, and their funds reassigned to this co-contribution.

· Council takes a loan for the outstanding co-contribution that is serviced by:

o Airport revenue including paid parking fees, increased Regular Passenger Transport (RPT) landing fees, General Aviation lease fees and other airport fees.
This is estimated to generate up to $2 million over 10 years, and/or

o An extension of the Merimbula Airport SRV beyond its scheduled 2031 end date.

Council endorses termination of the $10 million Merimbula Airport runway starter extension project, stage two, and withdrawal of the RAP4 application for this project.

The cancelation of the project and withdrawal of the RAP4 application may cause the Bega Valley Shire Council reputational damage with the Australian Government, community groups and Merimbula Airport operators and users. It is also important to note that by not applying at all in the first place, the above consequences would also have likely been realised.

Community and Stakeholder Engagement

Engagement undertaken

During the 11-month community and stakeholder consultation process for the Merimbula Airport Master Plan 2043, Council completed extensive online and in person community and stakeholder engagements on all aspects of the Masterplan including the ultimate extensions of the airport’s starter runways.

Engagement planned

If the RAP4 application for the Merimbula Airport runway starter extension project, stage two, is endorsed by Council and successful, Council officers will develop detailed engagement and communications plans.

Financial and Resource Considerations

The financial implications of this project are outlined below.

Item	$ Excl GST
Expenditure Detail
Design	$200,000
Construction	$6,200,000
Construction contingency	$1,200,000
Monitoring	$200,000
Project Management	$200,000
Biodiversity Offsets	$2,000,000
Total Expenditure	$10,000,000

Source of Funds
RAP4 grant	$4,000,000
NSW Government grant or other sources as outlined in this report	$6,000,000 (unsecured and provisional for this report)

Total income available	$10,000,000

Total Project Capital Cost	$10,000,000
Total Available Construction Funding	$0
Project Funding Shortfall	*$10,000,000*

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts

$ Excl GST

Capital Investment | Renewal, Upgrade, New

While the value and length of the Merimbula Airport runway will be increased, it has been accepted practice for the Australian Government to either completely or majority fund the refurbishment regional airport runways every 8 to 10 years.

Provided that this policy continues, it is anticipated the future renewal cost required will be 50% of the renewal amount of the surface

Annual maintenance and operational costs

The cost of operation and other maintenance such as runway inspections, sweeping & lighting and wildlife control either will not change or be mostly absorbed into current maintenance and operational contracts.

Legal /Policy

The Merimbula Airport runway extensions project supports or is governed by the following legislative frameworks:

· Australian Government’s Aviation White Paper (2024) that guides future growth and innovation in the aviation section to 2050

· Civil Aviation Safety Regulations (1998)

· Environmental Planning and Assessment Act (1979)

· Fisheries Management Act (1994)

· Biodiversity Conservation Act (2016).

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The Merimbula Airport runway extensions project supports achievement of these Community Strategic Plan objectives:

· A.7 Provide and support ongoing emergency response
By enabling the Merimbula Airport to be used by larger aerial tanker firefighting aircraft & in a wider variety of conditions and improvements to access to aero-medical services

· B.5 Collaborate with stakeholders to develop and enhance the economic opportunities provided by… Merimbula Airport
By increasing the size, number and type of aircraft that can use the airport and the number of destinations that can be serviced

· D.8 Collaborate with relevant parties to grow the passenger numbers through key transport links at the Merimbula Airport
By increasing the size, number and type of aircraft that can use the airport and the number of destinations that can be serviced

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

By ensuring the future financial viability of the Merimbula Airport.

Environment and Climate Change

The approved project DA has rigorous conditions that will minimise environmental harm caused by the extension of the Merimbula Airport runway.

Enabling more fuel efficient and higher capacity large narrow-body aircraft to use the Merimbula Airport will help to reduce the greenhouse gases emitted per passenger journey.

The second runway starter extension will provide the 1,800 m long take-off runway needed to enable the use of Merimbula Airport by larger aerial firefighting tanker aircraft.

Economic

Risk

These are the risks associated with the Merimbula Airport runway starter extension project stage two:

· The RAP4 grant is Council’s best opportunity to obtain further Australian Government funds to develop the Merimbula Airport, however, Council has only a short window to apply for these funds.

· To comply with the conditions of its approved Development Application, the second runway starter extension must be operational by December 2030.

· Should the Merimbula Airport runway starter extension stage two project be terminated and the RAP4 application for the Merimbula Airport runway starter extension project stage two be withdrawn, this may cause the Bega Valley Shire Council reputational damage with the Australian Government, community groups and Merimbula Airport operators and users.

· If approved DA lapses, it is highly probable that approval of a new EIS, permits and DA will be far more difficult and potentially make a future runway extension project untenable.

· Should the Merimbula Airport runway not be extended, its commercial operation will become increasingly marginal as the use of smaller RPT aircraft is phased out and they are replaced by larger aircraft that require longer runways.

Social / Cultural

A take-off length of 1,800 m would make operations by large narrow-body (180-200 seat) aircraft such as the Boeing 737 Max 8 and Airbus A320neo possible (although likely to a limited range of destinations). These aircraft types are commonly used by low-cost airlines in Australia, and their low operating costs per seat allow those airlines to offer very low fares, which has been proven in other markets to stimulate demand. Completing the additional runway extensions will therefore support the provision of affordable and accessible air transport services for the local community as well as maximising inbound tourism opportunities in the future.

Attachments

1 ⇩. Merimbula Airport Master Plan 2043

2 . Regional Airports Program Round 4 Grant opportunity guidelines (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.

3 ⇩. Development Approval (DA) Merimbula Airport Runway Extension

4 ⇩. Merimbula Airport Stage Two Runway Starter Extensions- application submitted to Regional Airport Program round 4 (RAP4)

Council 27 November 2024

Item 9.5

9.5. Merimbula Airport Taxiway Charlie Culvert Upgrade - RAP3

This report outlines the outcome of the evaluation for tender RFT 2324 082 Merimbula Airport Taxiway Charlie Culvert Upgrade and recommends award to the preferred tenderer.

Director Assets and Operations

Officer’s Recommendation

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

2. That Council accepts the tender from xxxx in relation to a contract for the works described in Tender RFT 2324-082, for xxx (including GST), subject to variations.

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

4. That funds from the internally restricted Asset Renewal Reserve be used as Councils co-contribution and this be reflected in the next quarterly budget review statements.

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

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

Executive Summary

The 2022 Merimbula Airport Master Drainage Strategy identified the taxiway Charlie culverts as an obstacle to stormwater flows that increases the likelihood and extent of flooding of upstream areas. Upgrades to these culverts will improve stormwater drainage into the neighbouring salt marsh and mangroves south of the taxiway away from airport runway and so reduce this flooding risk.

In 2023, Council received a grant from the Regional Airports Program Round 3 (RAP3) to assist in the improvement of the site’s stormwater flows. The scope of RAP3 included the upgrade of the taxiway Charlie culverts and removal of the aerodrome’s original haul road.

RFT 2324-082 called for tenderers to replace the existing taxiway Charlie culverts and undertake all taxiway pavement works up to but excluding spray seal and line marking which will be undertaken by Council.

Background

In March 2023, Council committed in the RAP3 funding agreement to deliver stormwater flow improvements that:

· offsets Fisheries Management Act 1994 credits required for the construction of the southern runway starter extensions

· continues delivery of the Merimbula Airport Master Drainage Strategy.

The scope of the RAP3 deed does this by:

· removal of the haul road used to build the airport during the 1950s

· upgrade of the culverts under taxiway Charlie.

Prior to completion of the works, both the haul road and the taxiway Charlie culverts dammed water north of their locations and increased the propensity for site flooding and poor drainage.

The haul road was removed in October 2024 in order to retire the $250k biodiversity credits tied to the RAP 1 and 2 funding and, as removal of the haul road allows stormwater to flow more freely, the taxiway Charlie culverts can now be upgraded without worsening localised flooding.

The RFT 2324-082 scope includes removal of the existing culverts and their replacement with higher capacity culverts across a greater width under the taxiway. The final stage comprising reinstatement of spray seal and line marking on taxiway Charlie that will be completed by Council.

The upgraded taxiway Charlie culverts will match the upstream taxiway Bravo culverts’ flow capacity and strength and can be used by the heavier aircraft envisaged in the Merimbula Airport Master Plan in the future.

Options

1. Accept the recommended tender as outlined in the confidential memo and award the contract to upgrade the culverts.
This is the preferred option.

2. Reject this tender recommendation which will not achieve RAP3 deed agreement deadlines and milestones and will result in a withdrawal of the RAP3 funding.
This is not the preferred option.

Community and Stakeholder Engagement

Under the Bega Valley Shire Council’s adopted community engagement strategy, this project is assessed as low impact, low scale & low complexity and this resulted in an ‘Inform’ level of engagement.

Engagement undertaken

The upgrade of the taxiway Charlie culverts is included in the Merimbula Airport Master Plan 2043, which was adopted by Council at its 12 June 2024 meeting.

The master planning process included community consultation during which no objections were received to the upgrade of the taxiway Charlie culverts. The upgrade will also reduce limitations on grassed aircraft parking areas after heaving rain due to saturation and ‘bogginess’. This has been a source of aircraft owner complaints for some time.

Engagement planned

Based on the ‘Inform’ level of engagement, users of the apron connected to taxiway Charlie will be informed of the works in advance of the commencement. The information will comprise the estimated timing and confirmation that they will still have access to the apron and to the fuel depot. In accordance with the Civil Aviation Safety Regulations 1998 (CASR), NOTAMs (Notice to Airmen) will be issued to advise pilots that taxiway Charlie will be closed for the duration of the works.

Financial and Resource Considerations

Upgrade of the taxiway Charlie culverts is part of a project funded by:

· A Regional Airports Program Round 3 (RAP3) grant; and

· Council funds.

In 2023, Council received funding under the RAP3 program. The RAP3 funding deed requires that Council provide 50/50 funding of eligible costs up to a total project cost of $805,000. RAP3 eligible costs comprise all airside construction related costs, but excludes design fees and environmental offsets & related monitoring costs.

The second part of the project funded by the RAP3 grant is the rehabilitation of a 1950s era airport construction haul road to improve water flows and inundation profiles.

In signing the deed Council committed to providing the appropriate matching funds which are articulated below. It is recommended that the Council funds be allocated from the internally restricted Asset Renewals Reserve with the adjustment reflected in the next Quarterly Budget Review Statements. This table identifies the revised eligible and ineligible costs of the two project components that have been refined since the RAP3 grant submission.

Item	$ Excl GST
Expenditure Detail
Taxiway Charlie Culvert Upgrade
Construction works budget (inclusive of sealing and ancillary works)	$413 604
Environmental investigation, protection and surveillance; tendering; construction surveillance; project management and administration	$102 758
Total Taxiway Charlie culvert upgrade – all RAP3 eligible costs		$516 362

Removal of Original Airport Haul Road
Construction works	$120 825
Environmental investigation, protection & surveillance; tendering; construction surveillance; project management and administration	$105 903
Total Removal of original haul road – RAP3 eligible costs	$226 728
Removal of original haul road – RAP3 ineligible costs (biodiversity credits and three years monitoring of rehabilitation)	$39 873
Total Removal of original haul road – RAP3 eligible and ineligible costs		$266 601
Total Expenditure		$782 963
Total Expenditure - RAP 3 eligible costs	$743 090
Total Expenditure - RAP 3 ineligible costs	$39 873
Source of Funds
Regional Airports Program Round 3 (50% of the $743 090 eligible costs)	$371 545
Council Internally restricted funds - Asset Renewal Reserve (ineligible RAP3 costs and 50% of the $743 090 eligible costs)	$411 418
Total Funding Available	$782 963
Total Project Capital Cost (excluding design, biodiversity etc..)	$534 429
Total Available Construction Funding	$782 963
Project Funding Shortfall	0

Financial Option Impacts | Life Cycle Costing

Ongoing Financial Impacts	$ Excl GST
Capital Investment \| Renewal, Upgrade, New	$400 000
Annual maintenance and operational costs	Minimal (TBD)
Depreciation costs	Inclusion of Merimbula Airport infrastructure in Council’s depreciation schedule is underway.
User charges (annual income)	NA

Legal /Policy

Civil Aviation Regulations (CAR), the Civil Aviation Safety Regulations (CASRs), the Civil Aviation Orders (CAO) and the Manual of Standards (MoS) – for pavement width and taxiway line marking.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The requirement for the scope of works is identified in the Merimbula Airport Master Drainage Strategy.

Improvements to the airport infrastructure are in accordance with Council’s Community Strategic Plan 2042. Relevant strategic goals and objectives include:

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

· Strategy 6 - Collaborate with relevant parties to develop and enhance the economic opportunities provided by the development of the Port of Eden, Merimbula Airport, East West freight corridor, and tourism services and facilities.

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

Strategy 22 - Collaborate with relevant parties to grow the passenger numbers through Merimbula Airport.Insert Text here"

Environment and Climate Change

The increased capacity of the culverts will allow the water to disperse across the protected salt marsh and mangrove area downstream and reduce erosion.

The design:

· aligns with the expected ultimate use of the apron in terms of height and strength

· aligns with the existing and planned future (after future runway overlays) heights

· aligns with the existing and planned future (after stormwater remediation and pavement improvement) southern apron heights)

· aligns with the master drainage strategy for the eastern side of the site

· links up with the 2021/2022 runway works without the need for reworking.

The use of concrete provides the longest possible life for the culverts (circa 100 years).

Economic

The increased drainage capacity will reduce flooding upstream of the culvert and on the southern apron area and so reduce damage to the pavements.

As the culvert design is based upon future taxiway and runway capabilities, there will not need to be for a future upgrade in future. There will also be an increase in the taxiway’s capability and increase in the range of aircraft able to use it for apron and runway access.

Risk

Risk	Pre Mitigation			Mitigation	Post Mitigation
Risk	Likelihood	Consequence	Rating	Mitigation	Likelihood	Consequence	Rating
Works compromise aerodrome safety	Likely (4)	Catastrophic (5)	Very High (24)	Method of Working Plan that requires works to be undertaken within safe boundaries included in RFT	Rare (1)	Catastrophic (5)	Medium (15)
Delays to aircraft movements	Likely (4)	Moderate (3)	High (17)	Method of Working Plan that provides for works to cease when conflict with aircraft movements included in RFT	Rare (1)	Moderate (3)	Low (6)
Culvert invert heights are not sufficiently (to within 2mm) correct and reduce the water flows or are too high to align with the runway and future apron heights	Likely (4)	Moderate (3)	High (17)	RFT requires levels to be set via a surveyor and not GPS	Rare (1)	Moderate (3)	Low (6)
Inappropriate treatment of acid sulfate soils	Possible (3)	Moderate (3)	Medium (14)	Application of the acid sulfate soils management plan is included in the RFT	Rare (1)	Moderate (3)	Low (6)
Siltation of area downstream from works	Likely (4)	Moderate (3)	High (17)	Environmental protections included in RFT and environmental surveillance officer to be allocated to the site	Rare (1)	Moderate (3)	Medium (9)

Social / Cultural

The entire site, including operations and this scope of work is the subject of an Aboriginal Heritage Impact Permit. The Review of Environmental Factors includes the provisions of the Unexpected Finds Protocol.

Attachments

1. Confidential Memo RFT 2324 082 Merimbula Airport Taxiway Charlie Culvert Upgrade (Confidential - As this attachment contains commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret as per Section 10A(2)(d) of the Local Government Act 1993.

Council 27 November 2024

Item 10.1

10.1. Annual Report 2023-24

Council’s 2023-24 Annual Report is presented for the information of Councillors. The report is required to be lodged with the Office of Local Government by 30 November 2024.

Director Business & Governance

Officer’s Recommendation

That Council:

1. Receive and note the 2023-24 Annual Report, noting that it covers the previous financial year and previously elected Council.

2. Provide a copy of the 2023-24 Annual Report to the NSW Office of Local Government and NSW Ombudsman by 30 November 2024.

3. Publish the 2023-24 Annual Report on Council’s website by 30 November 2024.

Executive Summary

The 2023-24 Annual Report has been prepared to comply with legislative requirements and guidelines and to celebrate achievements against the 2023-24 Operational Plan.

The 2023-24 Annual Report will be published on Council’s website and hard copies will be made available in Council’s libraries. The Annual Report is required to be provided to the Office of Local Government by 30 November each year.

Background

In accordance with Section 428 of the Local Government Act 1993, each year Council is required to produce an Annual Report that provides details of the organisation’s activities and finances over the period of the previous financial year. The NSW Office of Local Government also provides guidelines for the development of the annual report and requires a copy of the report for its records.

The Annual Report is one of the key points of accountability between Council and our community. Under the Integrated Planning and Reporting framework, the Annual Report focuses on Council’s achievements. This Annual Report is the last against the 2022-25 Delivery Program and includes information prescribed by Clause 217 of the Local Government (General) Regulation 2021 and other statutory information.

Attachment 1 to the Annual Report provides an update against all actions contained in the adopted 2023-24 Operational Plan by Community Strategic Plan theme area for the periods 1 July 2023 to 30 December 2023 (adopted at the February 2024 Council meeting) and, 1 January 2024 to 30 June 2024 (adopted at the August 2024 Council meeting).

Options

There are no options for this report. The Annual Report is prepared to meet legislative requirements and presented for noting by Councillors.

Community and Stakeholder Engagement

Engagement undertaken

The provision of the Annual Report is aligned with the “inform” level of engagement under the IAP2 Framework. The community can access the Annual Report as a record of the progress made in 2023-24 towards achieving the Community Strategic Plan 2040. Significant internal staff engagement is sought throughout the process of compiling the Annual Report.

Engagement planned

The Annual Report is one of the key points of accountability between Council and our community. Through the promotion of this report, Council demonstrates achievements and financial transparency.

The 2023-24 Annual Report will be published on Council’s website and hard copies will be available in Council’s libraries following adoption.

Financial and Resource Considerations

There are no financial impacts to the adopted budget through provision of the Annual Report. The Corporate Planning service and associated staff resource includes completion of this project as a core requirement of meeting our legislative responsibilities.

Legal /Policy

Under the Local Government Act 1993 within five months after the end of the financial year, Council must prepare a report as to Council’s achievements in implementing its Delivery Program and Operational Plan for that year.

The Annual Report must contain information required under the Local Government Act 1993 the Local Government (General) Regulation 2021 and other relevant legislation and guidelines including:

· Disability Inclusion Act 2014

· Environmental Planning and Assessment Act 1979

· Government Information (Public Access) Act 2009

· Government Information (Public Access) Regulation 2018

· Public Interest Disclosures Act 1994

· Public Interest Disclosures Regulation 2011

· Carers Recognition Act 2014

· Fisheries Management Act 1994

· Swimming Pools Act 1992

· Swimming Pools Regulation 2018

· Special Rate Variation Guidelines

· Companion Animals Guidelines

· OLG Expenditure Guidelines

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The delivery of the 2023-24 Annual Report supports the Community Strategic Plan (CSP) 2040 outcomes of strong, consultative leadership by seeking to meet the CSP goal of “ensuring we are an informed and engaged community with a transparent, consultative and responsive Council through the development and implementation of good governance systems”.

The Annual Report outlines Council’s achievements in implementing its Delivery Program 2022-25 and the 2023-24 Operational Plan.

Environment and Climate Change

There are no direct environment and climate change impacts with the provision of the Annual Report. Many of the activities and projects delivered within the 2023-24 financial year have contributed towards achieving the actions outlined in the Climate Resilience Strategy that was adopted in 2020.

Economic

There are no direct economic impacts with the provision of the Annual Report as it provides a summary of the progress made over the last financial year. Council is however a significant contributor to the local economy, employing many residents and utilising the services of a range of local providers.

Risk

Council has a legislative obligation to ensure it is financially and operationally transparent and the provision of the Annual Report to the Councillors and community helps to demonstrate Council is delivering upon the commitments it has made to deliver to community within the available funding sources.

Social / Cultural

There are no direct social or cultural impacts with the provision of the Annual Report.

The Annual Report highlights the achievements of Council during the 2023-24 financial year, the majority of Council’s activities and services have an impact on the social and cultural fabric of the Bega Valley community.

Council is consistently working towards achieving the community vision outlined in the Community Strategic Plan.

Attachments

1 ⇩. 2024.11.27 - Attachment - Annual Report 2023-2024 - Final Draft

Council 27 November 2024

Item 10.2

10.2. Subdivision of Central Waste Facility for lease purposes

The purpose of this report is to seek Council approval for the subdivision of the Central Waste Facility land. This subdivision will facilitate a long-term tenure arrangement with the successful tenderer for the design, construction, operation, and maintenance of an organics processing facility.

Director Business & Governance

Officer’s Recommendation

1. That Council approves the subdivision of Lot 402 DP 1191314 and Lot 1 DP 1271967 for lease purposes, as outlined in Figure 1: Draft Plan of Subdivision of Lot 402 DP 1191314 and Lot 1 DP 1271967, included in the report to Council dated 27 November 2024.

2. That Council approves the creation of an easement for access 15m wide over Council owned land located at Wanatta Lane, Wolumla, as detailed in Figure 1: Draft Plan of Subdivision of Lot 402 DP 1191314 and Lot 1 DP 1271967, included in the report to Council dated 27 November 2024.

3. That Council gives notice of its intention to classify the land located at Wanatta Lane, Wolumla and currently known as Lot 402 DP 1191314 and Lot 1 DP 1271967 as operational land under section 34 of the Local Government Act 1993 (NSW) upon registration of the plan of subdivision.

4. That Council delegates to the Chief Executive Officer and Mayor the authority to execute the necessary lease documentation, granting land only tenure to SOILCO Pty Ltd for a rate of $110 per annum, GST inclusive for the initial ten-year period after the completion of Milestone 2 with two extensions each of five years.

5. That Council delegate authority to the Chief Executive Officer and Mayor to execute the necessary documentation to affect the above course of action.

Executive Summary

Council approval is sought to subdivide the Central Waste Facility land at Wanatta Lane, Wolumla, to enable a long-term lease to SOILCO Pty Ltd, the successful tenderer for the organics processing facility to be entered into. This subdivision will also allow SOILCO Pty Ltd to obtain a separate Environmental Protection Licence.

As part of the tender process conducted by Public Works, a lease was drafted for $110 per annum (GST inclusive) for an initial ten-year period to commence after the completion of Milestone 2, with two five-year extensions.

Background

Council considered the tender award for the design, construction, operation, and maintenance of an organics processing facility at the Central Waste Facility (RFT 10055231) during its Ordinary Meeting on 20 September 2023, and resolved as follows:

1. That Council accepts the recommendation for the preferred contractor as outlined in the confidential attachment.

2. That in principle Council accepts the preferred tender subject to independent verification of financial status in relation to a contract for the services described in Tender RFT 10055231 for the design, construction, operation, and maintenance of an organics processing facility at the Central Waste Facility.

3. That authority is delegated to the Chief Executive Officer to carry out further due diligence on the financial status of the preferred contractor and once satisfied is then delegated to execute all necessary documentation in relation to this contract.

4. Once concluded then details of the preferred Tenderer and the cost subject to variations, provisional sums and prime cost items is published by Council and all tenderers be advised of Council’s decision.

5. That staff update the Waste Services long term financial plan to reflect Council’s decision.

Following negotiations, the tender was awarded to SOILCO Pty Ltd in October 2023. As the facility will be built on Council owned operational land and operated by a third party, a subdivision for lease purposes will be required for the 3.308-hectare land lease site. The operator will hold the Environmental Protection Licence. A subdivision to separate the site from the surrounding Central Waste Facility land is required for the Environmental Protection Licence and to allow a long-term tenure arrangement to be entered into with SOILCO Pty Ltd.

As part of the tender process, undertaken by Public Works, a lease was drafted for $110 per annum fixed, GST inclusive, for the initial ten-year period after the completion of Milestone 2 with two extensions each of 5 years subject to the ongoing satisfactory performance of SOILCO Pty Ltd and the agreement of both parties to each extension.

A map of a city

Description automatically generated with medium confidence

Figure 1: Draft Plan of Subdivision of Lot 402 DP 1191314 and Lot 1 DP 1271967 for lease purposes.

Options

The options available to Council are as follows:

1. Accept the recommendations provided by Council officers above and resolve accordingly.

2. Reject the recommendations provided by Council officers to approve the subdivision of Lot 402 DP 1191314 and Lot 1 DP 1271967, noting as SOILCO Pty Ltd will be occupying the site to operate and maintain the facility for a period of more than three (3) years, a subdivision for lease purposes is required to allow the lease to be registered on title.

Community and Stakeholder Engagement

Engagement undertaken

Community engagement for the proposed organics processing facility has been extensive and commenced in late 2020 with booked community information sessions as part of the Waste Facility Consolidation and Modernisation Project. This involved booked sessions at eight locations over eleven days where members of the community were invited to hear about the future of Waste in the Bega Valley. In total, staff recorded 73 attendees, with a greater level of attendance from residents of Bemboka, Candelo, Cobargo and Merimbula.

The BVSC Councillors have been consulted and informed of the development since August 2020 when a council report relating to the CWF development and when the OPF was first mentioned. The following list all consultation regarding the OPF project with Councillors:

· 26 August 2020 Council Meeting - Requesting resolution for the Waste Facility Consolidation and Modernisation project, deferred until further community consultation took place.

· 17 February 2021 Council Meeting – Update on the Waste Facility Consolidation and Modernisation project and resolution for the development to be moved to the CWF.

· 14 July 2021 Councillor Workshop – Organics processing options analysis.

· 31 August 2022 Councillor Workshop – Outsourcing organics processing.

· 15 February 2023 Council Meeting – Tender award for the Environmental Impact Statements for the Central Waste Facility – organics processing facility and landfill expansion.

· 31 May 2023 Councillor Workshop – Procurement pathway for the organics processing facility.

· 20 September 2023 Council Meeting – To accept the preferred contractor for the organics processing facility and, subject to satisfactory additional checks, execute the contract.

The CWF Community Consultative Committee consists of two or three local residents, a Councillor, the Waste Services Manager, and the CWF Waste Project Manager. The committee meets twice a year. Its purpose is to keep members updated on operational matters and future developments at the CWF, and to share that information with their community. The organics processing facility project has been discussed every six months since October 2021.

A community information session was held at midday on 11 August 2024 at the CWF. There were 31 community members in attendance, including one councillor, most of whom had pre-registered. The session lasted approximately 2.5 hours. The purpose of the engagement was to provide the public with information on the proposed facility, the development approvals process, and the accompanying environmental impact statement, as well as to offer an opportunity to ask questions. At the time of the engagement, most environmental impacts were understood, and reports were in draft format.

On 20 June 2024, Council invited the following regulatory departments to a planning focus meeting to provide their representatives detailed information on the development and an opportunity to raise any issues and visit the site in person:

· NSW Planning Group, Department of Planning, Housing and Infrastructure

· NSW EPA

· Fire and Rescue NSW

· NSW Rural Fire Service

· WaterNSW and

· NSW Environment and Heritage, Department of Climate Change, Energy, the Environment and Water.

The meeting was attended by representatives from the NSW EPA, Fire and Rescue NSW, NSW Rural Fire Service, Council representatives from the Planning, Environmental and Waste departments and SOILCO.

All engagement undertaken and planned is available in a community engagement report which will be included with the environmental impact statement to be submitted as part of the planning process.

Engagement planned

Once the development application has been lodged on the Planning Portal, the environmental impact statement will be on exhibition for 28 days. During this period, Council will seek community involvement in submitting feedback, which will be included in the submissions report. A media release will also be issued to encourage community participation.

Financial and Resource Considerations

For all Council-owned properties, a market rental valuation is generally applicable. However, as part of the tender for the design, construction, operation, and maintenance of the organics processing facility at the Central Waste Facility (RFT 10055231), SOILCO Pty Ltd was required to execute a simple commercial lease agreement for the works under milestone 3. By signing and submitting the lease agreement, SOILCO Pty Ltd agreed to give Council the Power of Attorney to add the actual commencement and end dates once known, as well as the DP number for the area of land to be leased and any other changes agreed with the contractor before milestone 3 commences and the lease is countersigned and registered.

Council officers engaged a registered surveyor to prepare the plan of subdivision for lease purposes at a cost of $9,560 plus GST. Additionally, legal representatives were engaged to prepare the necessary section 88B Instrument to accompany the plan, which cost $800 plus GST and disbursements.

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

Legal /Policy

A lease of land creates a subdivision under section 7A of the Conveyancing Act 1919 when the total of the original term of the lease, together with any options of renewal, is more than five (5) years. When the lease affects part of the lot or lots in a current plan – it is necessary to define the land in the lease and the residue of any lot in a current plan affected by the leased area. The plan must:

· Be a deposited plan of subdivision

· Bear a completed subdivision certificate and

· Be a survey, complying with the normal requirements for plan preparation and lodgement.

Section 53 of the Real Property Act 1900 (NSW) (RP Act) provides that land leased for more than three (3) 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 (3) years to be registered on title.

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

In accordance with Council’s 4.10.3 Management of Leases and Licences Procedure tenure may be granted by:

· Public auction

· Public tender

· Invitations for expressions of interest

· Private treaty.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

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

Operational Plan 2024 – 2025: C3.1.5 - Obtain development consent for a new organics processing facility at CWF.

Environment and Climate Change

As outlined in the background section of this report SOILCO Pty Ltd will be required to hold the Environmental Protection Licence through the NSW Environmental Protection Authority for the organics processing facility on the leased site.

Environmental and climate change impacts associated with this project were a key component of the tender evaluation process and the development approval process will consider all aspects of the environmental impact statement prepared.

Economic

A token rental amount was determined primarily to ensure a formal lease agreement was in place. Although the amount is small, charging a true market rental would result in Council paying it back to SOILCO Pty Ltd in fees through the operation contract, making this approach more logical. Additionally, an economic benefit is that the Council is generating new business on an existing site.

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 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 construction of a new organics processing facility will not affect residents’ access to waste disposal services. There will be no changes to waste collection services (kerbside bins), and transfer station operations will remain unchanged. On the contrary, a new purpose-built facility of the proposed scale will provide Council with greater capacity to expand FOGO collection services to the community.

Attachments

1 ⇩. Council report dated 20 September 2023 - 9.1.Tender award for the design, construction, operation and maintenance of an organics processing facility at the Central Waste Facility (RFT 10055231)

2. 2023.09.20 CONFIDENTIAL ATTACHMENT 1 RFT 10055231 Organics Processing Facility Tender Recommendation (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.

3 . 2023.09.20 CONFIDENTIAL ATTACHMENT 2 RFT 10055231 Organics Processing Facility council memo (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 27 November 2024

Item 10.3

10.3. Adoption of Policy 6.23 - Payment of Expenses and Provision of Facilities to Councillors

Council must adopt an expenses and facilities policy that complies with sections 252 and 253 of the Local Government Act 1993 and the Office of Local Government’s (OLG) Guidelines for the payment of expenses and the provision of facilities for mayors and councillors in NSW.

Director Business & Governance

Officer’s Recommendation

1. That Council adopt Policy 6.23 Payment of expenses and provision of facilities to Councillors attached to this report with no changes made to the draft version endorsed for exhibition at the council meeting on 14 August 2024.

2. That Council notes the submission received on Policy 6.23 Payment of expenses and provision of facilities to Councillors.

3. That adopted policy 6.23 Payment of expenses and provision of facilities to Councillors be published on Council’s website.

Executive Summary

Councils are required to have a policy for payment of expenses and provision of facilities which must comply with sections 252 and 253 of the Local Government Act 1993 and the Office of Local Government’s (OLG) Guidelines for the payment of expenses and the provision of facilities for mayors and councillors in NSW.

These guidelines and the Act require that this policy is placed on exhibition for community consultation and comment prior to adoption by Council.

The operational budget for Councillor fees and expenses in financial year 2024/2025 (FY2025) is $435,297.

Council received 1 submission from a member of the community on policy 6.23 – Payment of expenses and provision of facilities to Councillors during the 42-day public exhibition period.

Background

This policy is required to be reviewed annually to ensure that it aligns with Council’s adopted budget for FY2025. Section 4.2.1. The draft document presented for exhibition includes the monetary limits in accordance with the adopted FY2025 financial year budget.

Council received 1 submission from a member of the community on policy 6.23 – Payment of expenses and provision of facilities to Councillors. A summary of the submission is provided in the table below. A full copy of the submission is attached to this report.

Policy	Submitted by	Proposed amendments	Recommended Action
Policy 6.23 Payment of Expenses and Provision of Facilities to Councillors	Ms Laura Waibel	Payment of expenses and provision of facilities for Councillors Policy 6.23 ALL travel must be at economy class level, regardless of interstate, intrastate or international. To suggest that 'premium economy' travel should be funded during a cost-of-living crisis is offensive and tone-deaf to the ratepayers of BVSC. I question the need for a 50% discount on childcare fees when a federal govt Childcare subsidy already exists. Meeting legal costs for 'code of conduct' complaints for councillors is also tone deaf and completely inappropriate at the expense of the taxpayer. If councillors are properly briefed and trained on appropriate behaviours and conduct whilst performing their civic duty......then this will minimise such complaints. Look at federal/state colleagues and their atrocious behaviour........Barnaby Joyce, Linda Reynolds, all the MPs with sexual assault or child assault allegations to their names. They taxpayer/ratepayer should not be stumping up this cost through your policy. I am surprised that the council has increased expense allowances for 2025 for the mayor and councillors given their media communications indicates that they are constantly trying to save money elsewhere, through reduced library hours, closing rural swimming pools etc. Show true leadership BVSC and make some real change.	No further changes to policy 6.23.

Options

The recommended policy meets the requirements of Sections 252 and 253 of the Local Government Act 1993 and the amounts included are aligned with the adopted FY2025 budget.

Council has options to amend the budget allocations for the payment of expenses and provision of facilities at any time through the financial year.

Community and Stakeholder Engagement

Engagement undertaken

Community engagement was undertaken in developing the FY2025 annual budget, including councillor fees and expenses. The Draft policy 6.23 Payment of expenses and provision of facilities for Councillors has been received and noted by Council, it has been exhibited for a period of 42 days with an opportunity to receive public submissions.

Engagement planned

There is no further engagement planned.

Financial and Resource Considerations

Council has adopted the FY2025 budget which includes an allocation amount for payment of Councillors facilities and expenses as outlined in the table below.

Payment of Councillor fees are determined by the Local Government Remuneration Tribunal Determination with an upper and lower limit based on the size of the Council. A report was presented to Council on 8 May 2024 confirming the fees for Bega Valley Shire Councillors for FY2025. The budget for FY2025 was adopted by Council on 26 June 2024.

The adopted budget relating to Councillor expenses is below. This has informed the policy 6.23 attached to this report and includes additional expenses required for a councillor induction program following local government elections in September 2024.

Expenditure Area	FY2024 Budget $ (exc. GST)
Mayoral Fee	49,200
Elected Members Fees	202,860
Elected Members Allowance	6,780
Superannuation Accumulation	28,987
Training & Development Courses	46,860
Materials Purchased	10,920
Stationery & Office Consumables	990
Travel and Accommodation Costs	16,500
Food & Catering Costs	24,220
Consultants	22,880
Lease and rental expenses	13,200
Plant Hire - Internal Usage	11,900

Legal /Policy

Councils must adopt an expenses and facilities procedure, which must comply with sections 252 and 253 of the Local Government Act 1993 and the Office of Local Government’s (OLG) Guidelines for the payment of expenses and the provision of facilities for mayors and councillors in NSW. This policy is based on the better practice Councillor Expenses and Facilities Policy template issued by OLG. Sections 252 and 253 of the Local Government Act 1993 state:

252 Payment of expenses and provision of facilities

(1) Within the first 12 months of each term of a council, the council must adopt a policy concerning the payment of expenses incurred or to be incurred by, and the provision of facilities to, the mayor, the deputy mayor (if there is one) and the other councillors in relation to discharging the functions of civic office.

(2) The policy may provide for fees payable under this Division to be reduced by an amount representing the private benefit to the mayor or a councillor of a facility provided by the council to the mayor or councillor.

(3) A council must not pay any expenses incurred or to be incurred by, or provide any facilities to, the mayor, the deputy mayor (if there is one) or a councillor otherwise than in accordance with a policy under this section.

(4) A council may from time to time amend a policy under this section.

(5) A policy under this section must comply with the provisions of this Act, the regulations and any relevant guidelines issued under section 23A.

253 Requirements before policy concerning expenses and facilities can be adopted or amended

(1) A council must give public notice of its intention to adopt or amend a policy for the payment of expenses or provision of facilities allowing at least 28 days for the making of public submissions.

(2) Before adopting or amending the policy, the council must consider any submissions made within the time allowed for submissions and make any appropriate changes to the draft policy or amendment.

(3) Despite subsections (1) and (2), a council need not give public notice of a proposed amendment to its policy for the payment of expenses or provision of facilities if the council is of the opinion that the proposed amendment is not substantial.

(4) (Repealed)

(5) A council must comply with this section when proposing to adopt a policy in accordance with section 252(1) even if the council proposes to adopt a policy that is the same as its existing policy.

Further information can be found on the Office of Local Government Website: Councillor expenses and facilities

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Review and adoption of this procedure aligns with the following FY2023 integrated planning and reporting:

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

Delivery Program: E1.1 Conduct day to day management of Council and support Councillors to undertake their role.

Operational Plan E1.1.1 Conduct the review of Council’s policies and procedures.

Environment and Climate Change

There are no environmental or climate change considerations related to this report.

Economic

Adoption of a clearly defined policy on the payment and provision of facilities to Councillors aligns with Council’s adopted budget.

Risk

Council should review this policy on an annual basis and ensure it aligns with the adopted budget. Council’s Annual Report includes information on actual payments to Councillors in relation to payment of fees and provision of facilities.

Adoption of this Policy procedure ensures approval arrangements for all expenses and facilities within the allocated budget and that any payments outside of the provisions require prior approval at a full meeting of the Council.

Social / Cultural

The policy outlining the payments and provisions of expenses to Councillors advises the Councillors, potential councillor candidates and community about the financial and administrative assistance provided to Councillors while undertaking their role as an elected official.

Attachments

1 ⇩. Submission_Policy 6.23_Have your say

2 ⇩. DRAFT Revised Policy 6.23 Payment of expenses and provision of facilities for Councillors v 5

Council 27 November 2024

Item 10.4

10.4. Certificate of Investment October 2024

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

Director Business & Governance

Officer’s Recommendation

1. That Council receive and note the report on Council’s investment position at 31 October 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 October 2024 the total capital value of cash and investments was $141,343,475.65 with 88% 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	October-2024 ($’000)
General Fund	55,229
Water Fund	25,019
Sewer Fund	61,095
TOTAL	141,343

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 October 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	6,203,311.47
Commonwealth Bank (At Call cash account)	AA-	CASH	-	-	4.40	10,000,000.00
NSW Treasury Corporation (Strategic Cash Fund)	AA-	CASH	-	-	-	140,164.18
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	25/09/2024	25/02/2025	5.00	5,000,000.00
Suncorp	AA-	TD	30/11/2023	11/03/2025	5.40	2,000,000.00
NAB	AA-	TD	11/03/2024	11/03/2025	5.07	5,000,000.00
ING Bank	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 Bank	A	TD	28/05/2024	28/05/2025	5.27	3,000,000.00
ING Bank	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 Bank	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
ING Bank	A	TD	25/09/2024	25/05/2026	4.53	5,000,000.00
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
ING Bank	A	TD	25/09/2024	25/03/2027	4.50	2,000,000.00
Total Cash and Investments						$141,343,475.65

Table 2: Interest from Cash and Investments
Interest earned for October 2024	$569,771
Financial year to date interest earned	$2,195,523
Revised Budgeted interest for 2024/2025 financial year (QBRS Q1)^{^[1]}	$3,500,000
Percentage of the 2024/2025 budget earned by council	62%

Council’s investment portfolio is largely directed towards term deposits (88%). The remainder of the portfolio is held in cash deposit accounts with CBA and TCorp (12%).

The investments held by Council remain sufficiently liquid with 60% 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 October, the cash and investments held by Council provided a return of 5.05% 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	August-2024	September-2024	October-2024
General Fund	65,684	62,456	55,229
Water Fund	27,003	26,303	25,019
Sewer Fund	55,436	56,125	61,095
TOTAL	148,123	144,991	141,343

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 October 2024 is $1,005,238.43 with $483,784.87 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 August 2024, a further report has been included in this Business Paper to consider adoption of the changes proposed in August 2024.

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 October 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 October 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

A graph of a bar chart

Description automatically generated with medium confidence

Credit Quality Compliance

A screen shot of a computer

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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 27 November 2024

Item 10.5

10.5. Community Satisfaction Survey 2024

A Community Satisfaction Survey was undertaken in July and August 2024 and this report includes the findings from the survey.

Director Business & Governance

Officer’s Recommendation

That Council:

1. Note the 2024 Community Satisfaction Survey Research Report (Attachment 1)

2. Place Attachment 1 on Council’s website for public access

3. Ensure the survey results form an integral part of the information used for decision-making in establishing the next suite of integrated planning and reporting documents

4. Commit to undertaking a subsequent Community Satisfaction Survey in 2026.

Executive Summary

Council officers commissioned Taverner Research Group to undertake a Community Satisfaction Survey between 15 July – 8 August 2024. The survey tracks Council’s performance in service delivery, identifies priority areas and evaluates Council’s customer service and communication. The Community Satisfaction Survey Research Report (Attachment 1) outlines the survey findings.

The survey results are useful to Council as they highlight areas where we are performing well and identify areas for improvement. Council officers are recommending that the findings in the research report help to guide decision-making in establishing the next suite of integrated planning and reporting documents. The Community Satisfaction Survey is one of many tools that aim to inform future planning and programs of work and supports continuous improvement in service delivery.

Background

Council had last undertaken a Community Satisfaction Survey in 2016. As part of the service review framework developed in 2023, Council officers sought proposals from social research companies to undertake a satisfaction survey in 2024. Taverner Research Group was selected and undertook in-field survey work from 15 July- 8 August 2024.

The Community Satisfaction Survey Research Report provides some comparison with the 2016 survey and other councils across the state in the Taverner database. Working with Taverner enables benchmarking of results as they work with 35 other regional councils, with 4 of the 11 Canberra Region Joint Organisation Councils also working with Taverner.

Two separate sampling approaches were employed in the Community Satisfaction Survey – a random and representative sample of 400 responses were collected by phone and an online panel. Taverner also hosted an opt-in online and hard copy version of the survey which had close to 800 responses. The opt-in survey mirrored the phone survey, however the data between the two sampling approaches is reported separately. Differences in the results of the two samples are provided in the appendix of the Research Report. The hard-copy version of the survey questions is included at Attachment 2 for reference.

Options

This is a receive and note report with limited options.

Councillors may wish to request adjustments to the frequency of the survey or cease it altogether. The design of the survey questions can also be adjusted; however, this may limit the tracking of trends over time.

Community and Stakeholder Engagement

The information detailed in the Community Satisfaction Survey Research Report is one of the tools utilised for Council to receive high level feedback on its performance. Council officers also receive feedback through engagement and consultation with our community daily as we provide services. All the information Council receives as feedback, along with targeted consultation on specific matters that come before Council helps guide how services are delivered and highlights areas of focus for Council to seek improvement.

Providing the Community Satisfaction Survey Research Report to the community on Council’s website ensures transparency in our processes. It helps to build a broader understanding of the collective community feedback and priorities that a representative sample feel Council should focus on.

Engagement undertaken

Council’s Strategic Leadership Group and the previous group of elected Councillors were instrumental in designing the survey, an important part of the design and decision-making process. The survey was balanced to include questions about Council services and our community’s understanding of the work delivered by Council, while keeping the survey to a reasonable length. The median length of the telephone interviews was 16 minutes and 22 seconds. The phone and online panel surveys were undertaken between 15 July to 8 August. The social researchers used a combination of landline and mobile phone calls to survey participants.

As part of the July 2024 rates notice distribution, the below flyer was inserted to provide advance notice of the survey.

A green and white poster with text and a question mark

Description automatically generated A close-up of a survey card

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The opt-in version of the survey was made available online and in hardcopy for all residents to complete. This option allowed those residents who didn’t receive a phone call to participate in the feedback process. 798 responses were collected. The opt-in survey was promoted via:

· Social media posts

o Facebook – 3 posts (15 July, 20 July, and 23 July)

o Instagram – 2 posts (15 July and 20 July)

· Council newsletter – news item on 26 July

· Website

o Media release page – online from 15 July

o Have Your Say Page – online from 15 July to 5 August (26 days)

· Media release – 15 July

· Use of QR codes

o on the Have Your Say webpage

o on the rates insert

o on the digital screens (Council building foyer and libraries)

· Other communications

o CEO’s radio interview

o Rates notice insert

o Website banner

o Digital screens (Council building foyer and libraries)

o Internal staff communications (news items on Staff Portal)

Engagement planned

The recommendation in this report is to place the Community Satisfaction Survey Research Report on Councils website. A dedicated webpage on council’s website has been developed and a summary of the research findings will be promoted through Council’s various communication channels.

It is also recommended that a subsequent Community Satisfaction Survey is undertaken in 2026.

Financial and Resource Considerations

Council officers collaborated with three other Councils in the Canberra Region Joint Organisation, Queanbeyan-Palerang, Goulburn Mulwaree and Yass Valley, to secure a discounted rate for the survey.

Item	$ Excl GST
Expenditure Detail
Community Satisfaction Survey- fieldwork, research report, online survey	$27,100
Total Expenditure	$27,100
Source of Funds
Corporate Planning and Improvement FY2024 allocation	$27,100
Total income available	$27,100

It is proposed that the 2026 survey will be funded from the FY2025 Corporate Planning and Improvement allocation and budgeted in the long term financial plan.Legal /Policy

It is considered there are no direct legal implications.

Undertaking the Community Satisfaction Survey has been done in accordance with Policy 6.16 Community Engagement. The policy outlines that community engagement is the active link between Council and the community to enable community input to inform solutions.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Undertaking a Community Satisfaction Survey supports implementation of our Community Strategic Plan and Delivery Program.

CSP Theme: Civic Leadership- Local leadership is strong, consultative, and responsive to our community’s needs.

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

Delivery Program 2022-25: E1.1 - Conduct day to day management of Council and support Councillors to undertake their role

Environment and Climate Change

It is considered there are no climate or environmental sustainability implications in presenting the survey findings.

Economic

Outcomes of the survey will contribute to decisions for allocation of resources and how the organisation best contributes to the local economy through provision of services and infrastructure.

Risk

Council’s has identified effective civic leadership as a strategic risk. The provision of strong, consultative and responsive leadership is critical for Local Government agencies. Community feedback through formal surveys can assist with managing reputational risks. By undertaking community satisfaction surveys and using the feedback to guide decisions when prioritising resources will build community trust.

Social / Cultural

The Community Satisfaction Survey provides insight into the community feedback of Council services. Council officers thank those community members who gave their time to participate in our 2024 Community Satisfaction Survey. The feedback provided gives Council direction on what matters to our community and where we should be prioritising our efforts.

Attachments

1 ⇩. Attachment 1: Bega Valley Shire Council community satisfaction survey Report Final

2 ⇩. BVSC CSS Hardcopy Survey July 2024

Council 27 November 2024

Item 10.6

10.6. Adoption of Policy 6.07 Investment Policy

This is a follow up report to Council on the review of Policy 6.07 Investment policy in accordance with Section 165 of the Local Government Act 1993 and reported to Council on 14 August 2024.

Director Business & Governance

Officer’s Recommendation

1. That Council adopt Policy 6.07 Investment Policy as attached to this report with no changes made to the version endorsed at the council meeting on 14 August 2024.

2. That Council notes the submission received on Policy 6.07 Investment Policy.

3. That adopted Policy 6.07 Investment be published on Council’s website.

Executive Summary

The Investment policy review increases the total percentage of investments Council can hold with A rated financial institutions from 40% to 70% to recognise the improvements in credit ratings. A maximum exposure to one financial institution in the A category remains at 20%.

The document was endorsed by Council in draft form and exhibited for 42 days with council receiving submissions until 28 October 2024.

One submission was received during the exhibition of Policy 6.07 Investment policy. The submission made does not warrant any changes to the reviewed policy.

Background

Councils’ investment Policy includes credit quality and counterparty limits to reduce Councils risk when investing. In April 2024 the rating agency Standard and Poor’s (S&P) long term credit ratings were changed. The table below reflects these changes.

S&P changes
Institution	Previous Credit Rating	Current Credit Rating
AMP Bank	BBB	BBB+
Bank of Queensland (BoQ)	BBB+	A-
BankVic	BBB	BBB+
Bendigo-Adelaide Bank	BBB+	A-
Credit Union Australia (CUA)	BBB	BBB+
Police and Nurses Bank (P&N)	BBB	BBB+

At the time the S&P revised ratings led to $6m of council investments shifting from BBB category to A.

Options

Council has the following options when reviewing its policies:

1. Adopt the policy document with no changes (Recommended)

2. Amend the policy by resolution to reflect any adjustment of Council’s policy position.

Community and Stakeholder Engagement

Engagement undertaken

Relevant council officers have been engaged internally as subject matter experts for the purpose of reviewing the content of policy presented within this report.

The draft policy 6.07 Investment policy was placed on public exhibition for a period of 42 days and members of the public were given the opportunity to make submissions on the draft policy.

One submission was received during the exhibition as follows:

This submission does not change the officer’s recommendation to adopt the policy placed on public exhibition. It is recommended to adopt the policy attached to this report.

Engagement planned

No further engagement is required prior to adoption of this policy.

Financial and Resource Considerations

Council has adopted the FY2025 budget which includes an allocation amount for interest on investments, this budget is conservative and reviewed quarterly.

Legal /Policy

The review of policy within this report is consistent with the requirements of Section 165 of the Local Government Act 1993, which states:

165 Amendment and revocation of local policy

(1) A council may amend a local policy adopted under this Part by means only of a local policy so adopted.

(2) An amending local policy may deal with the whole or part of the local policy amended.

(3) A council may at any time revoke a local policy adopted under this Part.

(4) A local policy (other than a local policy adopted since the last general election) is automatically revoked at the expiration of 12 months after the declaration of the poll for that election.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Review and adoption of policies align with the following FY2024 integrated planning and reporting activity:

• 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 Governance and Records | core business - Monitor and review Council’s policy framework

Environment and Climate Change

There are no direct environmental or climate change impacts related to the process of adopting policies by Council.

Economic

There are no economic impacts as a result of the policy review process.

Risk

Councils are required to review policies on a regular basis to ensure they are fit for purpose. This review meets the requirements to ensure Council has complied with the relevant clauses of the Local Government Act 1993.

This report includes a copy of the policy that was placed on exhibition and are being recommended for adoption.

The policy register on Council’s website has all Council’s policies available for viewing and download.

Social / Cultural

Regular review of Council’s policies ensures the community is informed about how Council complies and implements legislation and organisational strategies.

Attachments

1 ⇩. Policy 6.07 Investment Policy v5 for Adoption

Council 27 November 2024

Item 10.7

10.7. EOI 2425-032 Use of Council owned and managed reserves for mobile food vending

This report details the results of the Expression of Interest (EOI 2425-032) process recently carried out for the use of Council owned and managed reserves for mobile food vending during the peak summer trading period.

Director Business & Governance

Officer’s Recommendation

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

2. That Council notes the EOI 2425-032 for use of Council owned and managed reserves for mobile food vending closed on 7 November 2024.

3. That Council considers the Council officers’ recommendation as detailed in the attached Confidential Report.

4. That Council authorises the Chief Executive Officer to enter into negotiations in order to execute the necessary documentation to provide tenure to the successful applicants.

5. That Council delegate authority to the Chief Executive Officer to enter into short term licence agreements with other suitably qualified commercial entities or incorporated organisations until 30 June 2025.

Executive Summary

To maintain transparency and avoid any suggestion of impropriety, Council officers completed an Expression of Interest (EOI 2425-032) process for the use of Council owned and managed reserves for mobile food vending during the peak summer trading period.

This report details the results of the EOI process conducted between 17 October 2024 and 7 November 2024, outlines concerns raised by members of the public regarding the encouragement of mobile food vending on Council owned and managed reserves and seeks Council’s approval to enter into licence agreements with the successful applicants.

Background

Council resolved at its Ordinary Meeting of 16 October 2024, to progress a public EOI process via public tender for the use of Council owned and managed reserves for the purposes of mobile food vending during the peak summer trading period.

Council officers conducted the EOI process between 17 October 2024 and 7 November 2024. A total of two submissions were received and evaluated against the set criteria by a tender evaluation panel that included representatives from Council’s Property and Legal team and Council’s Public Land Use Officer.

Both submissions received were for the Merimbula Boat Ramp. The tender evaluation panel used the criteria to recommend an applicant for this site and contacted the second applicant to offer an alternate site. While the second applicant has shown interest in the alternate site, they have not confirmed their intention to proceed before this report was presented to councillors. Council officers will continue to liaise with the applicant to potentially enter into a licence agreement for the alternate site.

Two other late submissions were received, but neither applicant provided responses to the criteria. One submission was for Jim Preo Reserve, Mogareeka. As outlined in the report to Council on 16 October 2024, the Bega Local Aboriginal Land Council (Bega LALC) has an existing licence to operate a mobile coffee cart at Tathra Lions Park, which expires on 31 January 2025. Council resolved to offer Bega LALC the opportunity to apply for a new licence to operate the youth training café until June 2025. Bega LALC has requested an extension of tenure at the Tathra Lions Park site until 5 May 2025. Since Tathra Lions Park is within the 500m exclusion zone outlined under Council’s Policy 4.15 Use of Public Land (Local Approvals), Council officers are not recommending proceeding with a licence agreement for Jim Preo Reserve, Mogareeka at this time.

The other late submission was for Bermagui Point. Although the applicant did not provide responses to the criteria, there were no conflicts with the proposed use. Therefore, Council officers recommend proceeding with a licence agreement up to 30 June 2025.

The information provided by tenderers in their submissions is considered ‘Commercial in Confidence.’ Therefore, Council officers have attached these submissions as a confidential attachment for the councillors’ information.

During the public tender process, some concerns were raised by members of the community about encouraging mobile food vending on Council-owned and managed reserves. These concerns, along with a statement outlining how they have been addressed, are summarised in the attached Confidential Report for the councillors’ information.

Council officers are continuing the review of Council’s Policy 4.15 Use of Public Land (Local Approvals), with the intention to report to the Council meeting on 18 December 2024. The key change will be the new maps detailing pre-approved sites for mobile food vending. There is nothing in the existing policy that prevents Council from proceeding with the EOI without the policy review being finalised.

Under Council’s current Policy 4.15 Use of Public Land (Local Approvals), the EOI process is conducted every three years. The previous EOI process was finalised at Council’s Ordinary Meeting on 16 November 2022, where authority was delegated to the CEO to enter into short-term licence agreements for up to 12 months until 30 June 2025. As outlined in the report to Council on 16 October 2024, Council officers have conducted an extensive review of Council-owned and managed reserve to identify prime mobile food vending sites throughout the shire to meet increased demand and intend to grant successful EOI applicants a temporary licence agreement until 30 June 2025, aligning with the resolution of 16 November 2022.

Prior to the completion of this licence period, a further EOI process will be conducted for the use of Council-owned and managed reserves which will include all identified prime sites.

Additionally, there was no mechanism to handle multiple requests for use of the same site outside the three yearly EOI process, further triggering the need for this ad-hoc EOI.

Options

The options available to Council are:

1. Accept the recommendation provided by Council officers in the attached Confidential Report and resolve accordingly.

2. Reject the recommendation provided by Council officers in the attached Confidential Report and resolve to provide tenure to an alternate tenderer/s.

3. Maintain vacant possession of one or more of the Council owned and managed reserves.

Community and Stakeholder Engagement

Engagement undertaken

Council officers conducted an EOI process via public tender from 17 October 2024 to 7 November 2024. The tender was available on Council’s e-Tendering portal and was publicly advertised on Council’s website and Facebook page on 18 October 2024. The Facebook advertisement had good reach and engagement, reaching 3,314 unique people, with 137 clicking through to the story on our website.

Additionally, there was an ABC South East NSW radio interview on 18 October 2024, and the story was picked up by radio stations 2EC, Power FM, and Mirage News on 23 October 2024.

Council officers maintained a list of enquiries about mobile food vending during the review period and sent email notifications advising when the EOI was open and how to apply. Statistics from VendorPanel indicate that the tender documentation was downloaded by 21 separate groups. Further details are outlined in the confidential attachment.

Following the close of the EOI, Council officers contacted those who had made enquiries during the advertising period but did not submit an application. The evaluation panel agreed to allow late submissions up to Friday, 8 November 2024. One application was received, and although it did not address the criteria, the submission has been included in the confidential attachment.

Council officers also contacted the tenderers who were not proposed to be offered a site to provide them the opportunity to select an alternate site. One of the unsuccessful tenderers declined, while another has shown interest in an alternate site but has not confirmed their intention to proceed before this report was presented to councillors. Council officers will liaise with this applicant with the view to entering into a licence agreement for an alternate site.

Engagement planned

Council officers will liaise with third party applicants who submitted EOI submissions to advise Council’s decision and formalise use/occupation of the Council owned and managed reserves over the coming weeks.

Council officers will continue to liaise with the unsuccessful tenderer who has shown interest in an alternate site with the view to entering into a licence agreement for an alternate site.

Additionally, if Council officers receive enquiries, the above resolution will provide the Chief Executive Officer with the delegation to enter into short-term licence agreements with other suitably qualified commercial entities or incorporated organisations until 30 June 2025.

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 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.

It is noted that Council officers are recommending the Mobile Food Vending – Prime Site - unpowered (3 Months) - $1,750 fee apply for continued use of Tathra Lions Park until 5 May 2025.

Legal /Policy

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).

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 were evaluated on the following criteria:

ECONOMIC ACTIVITY:
Criteria	Evaluation weighting (%)
Demonstrate how the activity will generate local economic activity and support 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:
Demonstrate what other benefits the community will receive from this activity	30%
EXPERIENCE:
Demonstrated previous experience in the proposed activity	20%
Evidence of appropriate accreditations and/or qualifications supplied	10%
SUSTAINABILITY:
Demonstrates how any waste generated by the commercial activity will be managed, collected and removed from the site	10%

Environment and Climate Change

The EOI process included criteria regarding waste management, including asking applicants to demonstrate how any waste generated by the commercial activity will be managed, collected and removed from the site. Responses have been assessed by staff and are detailed in the Confidential Report attached.

The licence agreement will include the following clauses to ensure all rubbish from mobile food vending activities is removed from the site, and that any damage to Council land will be repaired:

· The Licensee shall keep the licensed area, amenities and parking area clean and tidy, and all papers and other rubbish shall be collected and removed. The Licensee shall immediately repair and make good any damage occasioned by the Licensee’s use of the licensed area.

· The Council, as Crown Land Manager, reserves the right to revoke any licensed activities or part thereof for management reasons, including but not limited to environmental protection, public safety and changes in policy or legislation.

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 ⇩. Council report dated 16 October 2024 - Expression of interest for use of Council owned and managed reserves

2. Confidential Report to councillors regarding EOI 2425-032 Use of Council owned and managed reserves for mobile food vending (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.

3. EOI mobile food vans submission 1 (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.

4 . EOI mobile food vans submission 2 (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.

5 . EOI mobile food vans submission 3 (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.

6 . EOI mobile food vans submission 4 (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.

7 . EOI mobile food vans submission 5 (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.

8 . EOI mobile food vans objection 1 (Confidential - As this attachment contains personnel matters concerning particular individuals as per Section 10A(2)(a) of the Local Government Act 1993.

9 . EOI mobile food vans objection 2 (Confidential - As this attachment contains personnel matters concerning particular individuals as per Section 10A(2)(a) of the Local Government Act 1993.

10 . EOI mobile food vans objection 3 (Confidential - As this attachment contains personnel matters concerning particular individuals as per Section 10A(2)(a) of the Local Government Act 1993.

Council 27 November 2024

Item 10.8

10.8. Quarterly Budget Review Statement (QBRS) September 2024 Q1

Quarterly Budget Review Statements (QBRS) are prepared and presented to Council in accordance with Section 203 of the Local Government (General) Regulation 2021.

Director Business & Governance

Officer’s Recommendation

1. That Council receive and note the September 2024 Quarterly Budget Review Statement.

2. That the recommended budget adjustments detailed in the attachment to this report be adopted.

Executive Summary

As part of the Integrated Planning and Reporting (IPR) framework, a Quarterly Budget Review Statement (QBRS) must be presented to Council for each financial quarter. This report provides the FY2025 September (Q1) Quarterly Budget Review Statement.

In summary, the QBRS report for the quarter ending 30 September 2024 provides the following projected results:

· Total Income decreased by $3.5m

Including:

- User fees and charges decreased by $0.2m

- Interest and Investment revenue increased by $1.6m

- Operational grants decreased by $6.2m

- Capital grants increased by $1.3m

· Expenses increased by $8.1m

- Including $7.8m depreciation

· Consolidated net operating result before grants and contributions provided for capital purposes has a projected deficit of $7.7m

· Capital expenditure decreased by $18.7m

- Buildings increased by $1.1m

- Roads, bridges and footpaths increased $10.3m

- Water supply network decreased by $1.9m

- Sewer network decreased by $21.8m

- Open space/recreational assets decreased by $6.1m

- Other infrastructure decreased by $0.3m

· The revised projected cash figure at 30 June 2025 is expected to be $82.4m with external restrictions of $75.8m.

The Responsible Accounting Officer reports that the September quarterly review presented indicates Council's projected financial position at 30 June 2025 will be satisfactory.

Background

The QBRS is presented in a summary format which shows council’s income statement by fund and type.

The Capital Budget Review Statement (CBRS) is also prepared by type and provides variance details. It is the intent of this report to provide information on the financial performance of Council as a whole and, for each activity of Council.

The budgeting process sees Council develop annual budgets in March of each year. As can be expected, many external factors are unknown at that time and therefore it is important that routine budget reviews are undertaken and presented to Council for adoption. As required by the Local Government (General) Regulation 2021, we present recommendations and request budget adjustments through the QBRS process.

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

Operationally, our teams are continuing to demonstrate improvement in our financial reporting and systems, focusing on reducing errors and improving real time information.

Options

A detailed review by council officers has been undertaken to prepare the QBRS. It is recommended this is adopted to continue to support Council staff to deliver for the community.

Council has the option to consider other budget adjustments.

Community and Stakeholder Engagement

Engagement undertaken

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

Engagement planned

The budget adjustments requested in the QBRS are included as an attachment to the business paper and published on Council’s website. Once approved, the adjustments are made in our financial reporting systems. Future reports reflect the adopted changes.

Financial and Resource Considerations

Operating Result

Council’s consolidated budget, net operating result, has declined by $11.6m since the adoption of the carryover and revotes. The revised September budget is projecting a surplus of $42.7m. The consolidated net operating result before grants and contributions provided for capital purposes has decreased by $12.9m, resulting in a projected deficit of $7.7m.Income streams have seen an increase in investment income of $1.6m and decrease in fees and charges of $0.2m.

Operational Grants have decreased by $6.2m. Included in the total amount are new grants, previously received grants and new grants transferred to contract liability. The largest impact was the reduction of Financial Assistance Grant with 85% of our allocation paid in advance (June 2024) of $8.0m.

Capital Grants increased by $1.3m. Included in the total are new grants, previously received grants and new grants transferred to contract liability.

Expenses increased by $8.1m. Employee costs reduced by $0.3m, materials and services increased by $0.6m and depreciation increased by 7.8m. These changes include changes related to grant funded programs and an increase in depreciation based on predicted depreciation following the revaluation of infrastructure plant and equipment assets included in the Annual Financial Statements.

The recommended changes have the following impact on the net operating result by fund:

	Revised Budget (incorporating revotes/carry overs	Requested Changes	Projected Year End Result
General Fund	38,917,569	(5,536,793)	33,380,776
Water Fund	5,137,514	(1,528,303)	3,609,211
Sewer Fund	10,285,014	(4,566,100)	5,718,914

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

	Revised Budget (incorporating revotes/carry overs	Requested Changes	Projected Year End Result
General Fund	(1,712,571)	(11,052,925)	(9,340,354)
Water Fund	(1,304,426)	(1,124,390)	(2,428,816)
Sewer Fund	4,852,764	(770,600)	4,082,164

Capital

Capital expenditure is estimated to decrease by $18.7m in the September QBRS to $122.8m.

Cash and Investments

Council had cash and investments of $145.0m on 30 September 2024. The revised projected cash figure at 30 June 2025 is expected to be $89.2m of which $67.8m is expected to be externally restricted.

Legal /Policy

In accordance with Regulation 203(1) of the Local Government (General) Regulation 2021, the Responsible Accounting Officer must prepare and submit to the Council a Budget Review Statement after the end of each quarter.

Clause 203 of the Local Government (General) Regulations 2021 states:

Budget Review Statements and revision of estimates

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

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

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

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

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

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Council’s 2022–2025 Delivery Program and 2024-2025 Operational Plan provides the Financial Estimates 2022–2025 which includes the Budget for 2024-2025 (FY2025).

Review and adoption of Quarterly Budget Review Statement aligns with the following FY2025 integrated planning and reporting:

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

Delivery Program E.4.1 – Improve the provision of corporate financial services

Operational Plan Finance | core business - Preparation of compliant financial reports

Environment and Climate Change

There are no direct environment and climate change implications associated with presenting this report.

Economic

Council and its expenditure have a significant economic impact on the Bega Valley. The recommended adjustments to the adopted budget ensure as an organisation we can continue to deliver the services and projects committed to in the FY2025 Operational Plan.

Risk

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

The QBRS process helps to provide transparency and accountability into the financial management of Council.

Social / Cultural

The attachments to this report detail the recommended adjustments to our budget, which may have some impacts on social and cultural services.

The officer’s recommendation is to support the continued service provisions and associated budgets as detailed in the organisation’s plans as contained in the attached

Attachments

1 ⇩. Quartlery Budget Review Statements Q1 - September 2024.

Council 27 November 2024

Item 10.9

10.9. Presentation of Financial Statements and Audit Report for the Year Ended 30 June 2024

Council’s Financial Statements and Audit Report for the Year Ended 30 June 2024 is presented for the information of Councillors and the community. They have been placed on public notice for seven (7) days and members of the public are invited to provide comments.

Director Business & Governance

Officer’s Recommendation

That Council receive and note the report on Financial Year 2024 Audited Financial Statements and Report on the Conduct of the Audit.

Executive Summary

Council’s FY2024 Financial Statements and audit report are presented for the information of Councillors and the community.

It is a requirement to present the Auditors report to Council within five weeks of the receipt of the Auditors report. Council received the audit report on 31 October 2024.

Council have received an unqualified audit for Financial Year FY2024 and the reports were lodged with the Office of Local Government within the required timeframes.

Background

The financial statements for the year ended 30 June 2024 were completed and submitted for audit to the Audit Office of NSW (Crowe).

The annual financial statements were presented to Audit, Risk & Improvement Committee (ARIC) on 10 September 2024 at which the NSW Audit Office and Crowe representatives provided a briefing to ARIC on the progress of the Audit.

This report provides a summary of the financial results.

Prior to the council meeting the Auditors will make a presentation to Council and provide comments on the audited financials, observations made during the audit and answer questions. This presentation will be live-streamed for the public from 11.00am on Wednesday 27 November 2024.

Options

This report presents no options as it is an administrative process to meet Council’s legislative obligations.

Community and Stakeholder Engagement

Audited Financial Statements are one of the key points of accountability between Council and our community. By providing these documents to the public, council demonstrates financial transparency.

Reviewing financial results on an annual basis provides an indication of council’s ability to provide goods, services and facilities and to carry out activities appropriate to the current and future needs of the local community and the wider public.

The Financial Statements are attached to the published 2023-2024 Annual Report and made available to the public on Council’s website and hard copies available at Council’s libraries.

Engagement undertaken

Key stakeholders in preparation of the financial statements include the auditors, Office of Local Government and ARIC committee. Extensive internal stakeholder engagement across many functional areas of Council has been required to finalise the statements.

Engagement planned

Council is required under section 418 of the Local Government Act 1993 (NSW) to give public notice of the presentation of the financial reports, this notice was provided on Councils website on 8 November 2024.

In accordance with Section 420 of the Local Government Act 1993 (NSW), any person may make a submission in writing to Council with respect to the Council’s Audited Financial Statements or the Auditor’s Reports within seven (7) days after the date on which the reports are presented to Council.

Financial and Resource Considerations

The commentary below provides some items of note in the General Purpose Financial Statements (GPFS). Any reference to ‘budget’ in the Financial Statements is the annual Operational plan budget adopted in June.

Operating Result

The operating result (before capital) is a surplus of $2.1 million. This result is better than the original budget of $1.8 million deficit. The major contributing factor for the actual versus expected is an increase in interest and investment income. Operating grants also increased by $14.9 million but funded increases in both employee costs and materials and contracts.

Cash and Investments

Council’s cash and investment balance has improved in FY2024 with total cash and cash equivalents of $139.8 million. Council had external restrictions (water, sewer, developer contributions, unexpended grants and loans) of $106.3 million and internal restrictions of $30.4 million the remaining unrestricted cash is $3.1 million.

Operating Results by Fund

The statements include a breakdown of the income statement and financial position for the General, Water and Sewer funds.

FY2024 Result	General (‘000) $	Water (‘000) $	Sewer (‘000) $
Net Operating Result	20,302	5,591	7,043
Net operating result before grants and contributions provided for capital purposes	(2,173)	(1,067)	5,378

Observations

· General Fund – The result is better than original budget of $4.8m deficit; an improvement of $2.6m. The major contributing factor is an increase in interest and investment revenue.

· Water Fund – The result is not as good as the original budgeted $0.4m deficit, with an additional $0.6m deficit. The major contributing factor is an increase in depreciation of $1.4m. This is partially recovered by an increase in operating income of $1.1m.

· Sewer Fund – The result is better than the original budget of $5.4m surplus and sees an improvement of $1.9m. The major contributing factor is an increase in operating income of $1.4m, savings of $1.2m in employee costs and materials and an increase in depreciation costs of $0.6m.

Financial Performance Ratios (Consolidated)

The key performance measures indicated in the table below shows that as a consolidated entity, Council has achieved a positive operating result.

	FY2024 (‘000)	FY2023 (‘000)	Benchmark
Operating Performance ratio	6.88%	6.30%	>0.00%
Own Source Revenue ratio	58.35%	49.93%	>60.00%
Unrestricted Current Ratio	3.76x	2.81x	>1.50x
Debt Service Cover Ratio	7.55x	6.52x	>2.00x
Rates outstanding percentage	4.64%	4.64%	<10% Rural
Cash expense cover ratio	14.74 months	11.94 months	>3 months

Observations

· Own source revenue is lower than the benchmark, a result of the high rate of grants that Council has received.

· The unrestricted current ratio is a measure of Councils ability to pay its current liabilities. Since it deals with only unrestricted asset and liabilities, it is a General Fund performance measure. The result of 3.76 has improved since 2023.

· The debt service ratio is a measure of Council’s ability to service its loans. As Council’s borrowings reduce, this ratio increases.

· The cash expense cover ratio includes the restricted and unrestricted cash. Whilst the ratio is healthy it should be noted that restricted cash is only available for the specific purpose it was collected for.

Financial Performance Ratios (Funds)

Statement of Performance Measures (Ratio) \| General Fund	Benchmark	FY2024
Operating Performance ratio	>0.00%	4.90%
Own source operating revenue ratio	>60.00%	49.63%
Unrestricted current ratio	>1.50x	3.76x
Debt service cover ratio	>2.00x	7.58x
Rates, annual charges, interest and extra charges outstanding percentage	<10.00%	4.88%
Cash expense cover ratio	>3.00 months	8.42 months

Statement of Performance Measures (Ratio) \| Water Fund	Benchmark	FY2024
Operating Performance ratio	>0.00%	(5.23%)
Own source operating revenue ratio	>60.00%	68.87%
Unrestricted current ratio	>1.50x	85.56x
Debt service cover ratio	>2.00x	∞
Rates, annual charges, interest and extra charges outstanding percentage	<10.00%	4.26%
Cash expense cover ratio	>3.00 months	∞

Statement of Performance Measures (Ratio) \| Sewer Fund	Benchmark	FY2024
Operating Performance ratio	>0.00%	23.29%
Own source operating revenue ratio	>60.00%	91.77%
Unrestricted current ratio	>1.50x	23.70x
Debt service cover ratio	>2.00x	5.23x
Rates, annual charges, interest and extra charges outstanding percentage	<10.00%	4.10%
Cash expense cover ratio	>3.00 months	∞

The (unaudited) Infrastructure report provides additional KPI’s regarding Council performance in the management of community infrastructure. Below is a summary of the performance against the benchmarks, both consolidated and by fund.

Report on Infrastructure Assets (Ratio) \| Consolidated	Benchmark	FY2024
Buildings and infrastructure renewals ratio	>=100.00%	103.33%
Infrastructure backlog ratio	<2.00%	2.09%
Asset maintenance ratio	>100.00%	102.98%
Cost to bring assets to agreed service level	NA	1.42%

Report on Infrastructure Assets (Ratio) \| General Fund	Benchmark	FY2024
Buildings and infrastructure renewals ratio	>=100.00%	138.93%
Infrastructure backlog ratio	<2.00%	2.82%
Asset maintenance ratio	>100.00%	103.27%
Cost to bring assets to agreed service level	NA	2.00%

Report on Infrastructure Assets (Ratio) \| Water Fund	Benchmark	FY2024
Buildings and infrastructure renewals ratio	>=100.00%	32.24%
Infrastructure backlog ratio	<2.00%	0.00%
Asset maintenance ratio	>100.00%	113.53%
Cost to bring assets to agreed service level	NA	0.00%

Report on Infrastructure Assets (Ratio) \| Sewer Fund	Benchmark	FY2024
Buildings and infrastructure renewals ratio	>=100.00%	60.73%
Infrastructure backlog ratio	<2.00%	0.00%
Asset maintenance ratio	>100.00%	93.53%
Cost to bring assets to agreed service level	NA	0.00%

Observations

· Renewal ratios for Water and Sewer infrastructure reflect the longer lifespans of these assets, Council is required to maintain a 30 year plan for renewal for these assets.

Financial Performance and Position

FY2024 Result	(‘000) $
	Original Budget	2024 Actual	2023
Total Assets	1,619,050	1,967,216	1,660,725
Total Liabilities	77,138	72,514	80,639
Net Assets	1,541,912	1,894,702	1,580,086
Total Equity	1,541,912	1,894,702	1,580,086

Observations

· Total assets increased by $348m from budget and $306m from previous year. The major contributing factor for this increase is the revaluation of infrastructure plant and equipment.

· Net assets increased by $353m from budget and $315m from previous budget.

· Equity increased by $353m from budget and $315m from previous budget.

Budget Information

Preparation of this report, the execution of the external audit and the additional support required to have the Financial Statements audited has been undertaken within the Financial Services Administration general fund budget.

Legal /Policy

Section 413 of the Local Government Act requires a resolution of Council to refer the draft financial statements to audit. This was completed on 16 October 2024.

Section 413 (2c) requires a resolution of Council that the annual financial statements have been prepared in accordance with:

· The Local Government Act 1993 (as amended) and the Regulations made there under

· The Australian Accounting Standard and professional pronouncements,

· The Local Government Code of Accounting Practice and Financial Reporting.

and that, to the best of their knowledge and belief, the financial statements present fairly the operating result and financial position, and accord with Council’s accounting and other records.

Section 418 of the Act requires that as soon as practicable after Council receives a copy of the auditor’s report, it must fix a date for a meeting to present the audited financial statements to the public, and it must make the financial statements available for public inspection for at least 7 days prior to the meeting date.

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.

Environment and Climate Change

The audited financial results at 30 June 2024 provide information that can be used to assess Councils financial position by using the results to calculate the financial sustainability ratios. 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 to ensuring a financially responsible and effective organisation. As well, an opportunity to assess actual performance against strategic plans, highlighting any challenges and unexpected events that may impact the final results.

Risk

Information in the financial statements and reports assist with analysis of the performance of Council. Following the Audit, Council receives a management letter that describes areas of risk identified and makes recommendations for areas that Council should give attention. In addition, Council Officers review the reports and undertake internal analysis of the results, providing an opportunity for strategic and organisational risks to be identified and captured in accordance with our Enterprise Risk Management Framework. Assessment of the controls in place to manage identified risks is a function of the Audit, Risk and Improvement Committee and the annual external audit process.

Social / Cultural

Reporting of financial performance in a timely manner that meets legislative requirements, 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 Financial Statements 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) that is used to inform future decisions and direction.

Attachments

1 ⇩. Bega Valley Shire Council Annual Financial Statements 2024

Council 27 November 2024

Item 10.10

10.10. Draft 2024 - 2028 Community Engagement Strategy

This report seeks Council support for the public exhibition of the Draft 2024 – 2028 Community Engagement Strategy.

Director Business & Governance

Officer’s Recommendation

1. That Council resolve to publicly exhibit the Draft 2024-28 Community Engagement Strategy (attachment 1) for a period of no less than 28 Days.

2. That a further report be presented to Council if there are any substantial changes to the draft strategy arising from the public exhibition.

3. That if there are no substantial changes arising from the public exhibition, that the draft Community Engagement Strategy be considered adopted and published to Council’s website.

Executive Summary

The Draft 2024-28 Community Engagement Strategy provides a framework for Council to interact with diverse voices across our community.

It replaces the existing Community Engagement Strategy endorsed by Council on 27 November 2019.

The Draft 2024-28 Community Engagement Strategy references a continuum of community engagement based on the International Association of the (IAP2) Public Participation Spectrum - inform, consult, involve, collaborate and empower. Council uses the IAP2 spectrum to guide engagement activity.

The revised and updated Draft 2024-28 Community Engagement Strategy is central to Council’s community engagement framework, which aims to give the community a clear understanding of:

• Council’s commitment to engaging with the community

• How we will seek and respond to community input

• The types of engagement that suit the various activities

• How community input is utilised in decision making

• How community involvement shapes our actions.

It includes Council’s engagement principles for implementing best-practice community engagement aligned with Council's Community Strategic Plan 2042, legislative requirements, and a Community Participation Plan.

The Community Participation Plan (CPP) details the timing and methods of community involvement in statutory planning and development issues, including development applications and planning proposals.

The Community Participation Plan (CPP) is a requirement of the Environmental Planning and Assessment Act 1979. The CPP is embedded within this Strategy and contributes to Council's comprehensive approach to community engagement.

Background

The Integrated Planning and Reporting (IPR) framework provides structure for NSW councils when planning for their communities. Community engagement and ongoing monitoring and evaluation are fundamental to the performance of Council.

The IPR guidelines describe the requirements for Community Engagement Strategies, which must include:

• Adherence to social justice principles of access, equity, participation, and rights

• Recognising stakeholder groups in the community

• Detailing the approaches that Council will use to interact with each of these groups

• Ensuring an ample amount of time to execute engagement effectively.

All councils are required to prepare a Community Engagement Strategy (CES) to support development of all their plans, policies, programs and key activities. This includes those relating to IPR, as well as strategic plans and programs required under other legislation.

Engagement activities should be incorporated into one over-arching strategy that is exhibited and endorsed by Council.

A Community Engagement Strategy must be prepared, adopted and implemented to support councils as they develop plans, policies and programs. As a minimum, the Community Engagement Strategy must identify relevant stakeholder groups within the community and outline the methods that will be used to engage.

The Community Engagement Strategy should be reviewed by the end of each local government election year as part of a broader review of the Community Strategic Plan (CSP). When adopted, the 2024-28 Community Engagement Strategy will replace the existing CES adopted in 2019.

Where a council has community engagement requirements under other legislation or regulations—such as the Environmental Planning & Assessment Act 1979 (EP&A Act)—these should be integrated into the Community Engagement Strategy wherever practical.

While community engagement does not replace the decision-making powers of elected Councillors or the Chief Executive Officer, it does enhance the capacity of councils to make well-informed, sustainable decisions that clearly demonstrate community buy-in and support.

Options

Options available to Council are to:

1. Place the Draft 2024-28 Community Engagement Strategy on public exhibition for a period of no less than 28 days. At the end of the exhibition period, a further report be submitted for Council’s consideration detailing the results of the consultation and any recommended changes to the plan. This is the recommended option.

2. Resolve not to exhibit the Draft 2024-28 Community Engagement Strategy. This option is not recommended due to the existing 2019 Community Engagement Strategy no longer meeting the requirements of the IPR community engagement guidelines.

Community and Stakeholder Engagement

An internal staff survey in February 2024 was conducted to determine which staff used the 2020 Community Engagement Toolkit, how useful they found it and how it could be improved.

Respondents felt some of the content would be better contained in the Community Engagement Strategy and the 2020 toolkit be replaced with a handbook that staff can use in the development of their community engagement plan.

Based on this feedback, an updated 2024 Community Engagement Handbook has been developed. It is our intention to have Council project officers review this handbook and provide feedback on its usefulness.

Engagement undertaken

No external engagement has been undertaken. Option one recommendation above is for Council to exhibit the document publicly.

Engagement planned

During the exhibition period, public feedback will be sought through a short survey on Council’s website, shared through Council’s newsletters, social media and a media release.

Financial and Resource Considerations

The costs associated with individual engagement activities are determined on a project-by- project basis and budgeted across a range of Council areas on an annual basis. The Strategy provides guidance on the scale of engagement activities required for various engagement activities, to support efficient and effective use of resources.

There are no financial impacts to the adopted budget through provision of the Community Engagement Strategy.

The Communication and Engagement service and associated staff resource includes completion of this core requirement of meeting our legislative requirements. In addition, this team provides support to the organisation in consistently undertaking community engagement aligned with legislative requirements and the IAP2 spectrum.

Legal /Policy

The Draft 2024-28 Community Engagement Strategy has been prepared in accordance with the 2021 Integrated Planning and Reporting (IPR) Guidelines for Local Government in NSW and includes a Community Participation Plan, a requirement of the Environmental Planning and Assessment Act 1979.

The Strategy meets all standards of the 2021 IPR community engagement guidelines and includes the following mandatory components:

• Includes social justice principles

• Scoping

• Stakeholders

• Methods

• Strategies

• Implementation

• Review and report.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

The strategy closely aligns with key elements of the following Council plans and strategies:

· Community Strategic Plan 2042 - Strategies A.1, A.2, C.3, D.1, D.4, D.5, E.2, E.3, E.7

· Delivery Program A1.3 – Support Council’s community consultation and engagement activities

· Operational Plan 2023-24 A.1.31 – Review and update the Community Engagement Strategy and Toolkit

Environment and Climate Change

There are no direct environment and climate change impacts with the review and refinement of the Community Engagement Strategy.

Economic

There are no direct economic impacts with the provision of the Community Engagement Strategy, however it does provide a framework for Council to interact with diverse voices across our community and builds knowledge and understanding of the economic environment for various stakeholders.

Council is a significant contributor to the local economy, employing many residents and utilising the services of a range of local providers and effective community engagement supports council’s response through provision of services and infrastructure that support our local economy.

Risk

Effective community engagement supports informed decision making and reduces risks to Council. The Community Engagement Strategy assists Council to mitigate risk across its portfolio by inviting the community to contribute to Council business. It aims to ensure that engagement is meaningful, effective, and appropriate, and builds trust between Council and the community.

Social / Cultural

There are no direct social or specific cultural impacts with the provision of the Community Engagement Strategy. The Strategy outlines Council’s commitment to ensure that all members of our community can actively contribute to civic life.

Our community is diverse, with people from a variety of backgrounds and a range of interests living, working and visiting our region. When planning community engagement, we analyse our stakeholders and seek those who might be interested in, impacted by, or benefit from a decision.

Many Council’s activities and services have an impact on the social and cultural fabric of the Bega Valley community.

Council is consistently working towards achieving the community vision outlined in the Community Strategic Plan.

Attachments

1 ⇩. 2024-28 Community Engagement-Strategy - FINAL DRAFT

Council 27 November 2024

Item 10.11

10.11. Audit and Risk Improvement Committee and Councillor Representatives on Committees

This report is presented to rectify the decision to appoint two councillor delegates to the Audit, Risk, and Improvement Committee (ARIC) to ensure compliance with the Local Government (General) Regulation 2021 (NSW) and clarify arrangements for Councillor representatives on committees.

Director Business & Governance

Officer’s Recommendation

That Council:

1. Note that the appointment of two (2) councillor members to the ARIC on 9 October 2024 is non-compliant with the Local Government (General) Regulation 2021 and,

2. Appoints one (1) councillor delegate and one (1) councillor as alternate delegate to the Audit, Risk, and Improvement Committee (ARIC) as a non-voting member position in accordance with the Office of Local Government guidelines and ARIC Terms of Reference.

3. Resolve that where a Councillor delegate is appointed to a committee, they are the nominated council representative to attend scheduled meetings and in the case they are an apology, make arrangements for the alternate Councillor to attend in their place.

4. Note committee delegates and the alternates will receive meeting agendas and business papers for the committees that they are appointed.

Executive Summary

Amendments have been made to the Local Government (General) Regulation 2021 to require all councils to have a risk management framework and an internal audit function and to prescribe membership requirements for Audit, Risk and Improvement Committees. Councils are required to comply with these requirements from 1 July 2024.

The Office of Local Government (OLG) has issued comprehensive ‘Guidelines for Risk Management and Internal Audit for Local Government in NSW’ to assist councils to implement these requirements.

The Terms of Reference (TOR) for committees with council appointed delegates make provision for membership, attendance and voting rights. The Audit, Risk and Improvement Committee TOR and OLG Guidelines state that only one councillor may be appointed to ARIC as a non-voting member. An alternate is appointed to attend where the nominated delegated is unable to attend the meeting. It is also important that delegates, alternates and staff are clear on arrangements for attendance of Councillor representatives on committees.

Background

When considering the appointment of Council delegates and alternates to internal and external Council committees at its Extraordinary Meeting of 9 October 2024, Council resolved that Councillors O’Neil and Daly be appointed as delegates for the Audit, Risk and Improvement Committee (ARIC).

Clause 216(C) of the Local Government (General) Regulation 2021 (NSW) outlines the composition of ARIC, stating that Councils may appoint one councillor as a non-voting member. Following the abovementioned Council resolution, Officers consulted with the Office of Local Government, who advised Council cannot appoint more than one councillor delegate to ARIC.

The Guidelines for Risk Management and Internal Audit for Local Government in NSW, state the following eligibility requirements for a councillor member:

· An ability to read and understand financial statements and a capacity to understand the ethical requirements of government (including potential conflicts of interest).

· A good understanding of one or more of the following: risk management, performance management, human resources management, internal and external auditing, financial reporting, accounting, management control frameworks, internal financial controls, governance (including planning, reporting and oversight), or business operations.

· A capacity to form independent judgements and willingness to constructively challenge/question management practices and information.

· A professional, ethical approach to the exercise of their duties and the capacity to devote the necessary time and effort to the responsibilities of a councillor member of ARIC.

· Preparedness to undertake any training on the operation of ARIC recommended by the chairperson based on their assessment of the skills, knowledge, and experience of the councillor member.

The OLG guidelines also state that the Mayor cannot be appointed as the councillor member of ARIC.

In addition to arrangements for ARIC it is also important to provide clarity for all stakeholders on Councillor involvement in committees. In the past, staff providing secretariat support have typically invited the nominated delegate to meetings and had not expected alternates to be in attendance at meetings unless the nominated delegate was an apology.

Options

Under Council’s adopted Terms of Reference for ARIC, the committee consists of an independent chair, two independent members with voting rights, and one non-voting councillor.

It is recommended Council resolve to appoint one non-voting councillor and one alternate councillor to ARIC to ensure compliance with the legislation.

Council could consider changing its representation on some committees (for example S355 or Council advisory committees), however for others this is not the case where there is external direction on representation, for example ARIC and the Local Traffic Committee.

Community and Stakeholder Engagement

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

Engagement undertaken

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

Engagement planned

The existing meeting arrangements will continue with the next ARIC meeting scheduled to be held in January 2025.

Financial and Resource Considerations

Membership to ARIC is a volunteer position under Council’s adopted Terms of Reference. Minimal budget is provided for hosting quarterly meetings.

All other administration expenses are covered within the general fund operational salaries and wages budget for staff to provide support to the function and reporting to the committee.

Legal /Policy

On 9 October 2024, Council considered the report to establish committees with delegated authority and advisory committees (Agenda of Extraordinary Council - Wednesday, 9 October 2024). At the meeting, the Terms of Reference for each committee were attached and included membership requirements. Council then appointed delegates and in some cases an alternate representative. At the meeting, 2 councillors were appointed as delegates to ARIC resulting in non-compliance with the legislation and terms of reference. This report seeks to rectify the administrative error and appoint 1 councillor delegate and 1 alternate.

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

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

Ongoing reporting by the ARIC to the governing body is a requirement of the ‘Guidelines for Risk Management and Internal Audit Framework for Local Councils in NSW’. Specifically, the ARIC must provide an update to the governing body of Council of its activities and observations after every committee meeting.

A review of the LG Act, s10 has been undertaken to confirm councillor attendance at various committee meetings. The Act is specific that Council Committees of which all the members are councillors, the Code of Meeting Practice applies. Bega Valley Shire Council does not have any Council Committees and therefore the Terms of Reference adopted by Council on 9 October 2024 for each committee detail the membership and attendance provisions.

This report clarifies that appointed delegates are the nominated representative and the alternate should only attend in the event the appointed council delegate is unavailable. Delegates and alternates will receive agendas and business papers with the appointed delegate attending the meeting.

Committee Terms of Reference may include provisions for the chair to invite guests to attend a meeting where they are a Council Committee. Other arrangements may be prescribed by a regulatory body. For example, Transport for NSW’s “A guide to the delegation to councils for the regulation of traffic Including the operation of Traffic Committees” includes the following with respect to membership:

5.2 Members

The LTC is to be made up of four formal members. The members are as follows:

• one representative of Council

• one representative of the NSW Police

• one representative of the RTA

• the local State Member of Parliament (MP) or their nominee.

The Council’s representative may be any Councillor or Council officer.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

CSP Strategy: E.6 Council decision making seeks to optimise environmental, social and economic outcomes for our community, while mitigating financial, legal, environmental, reputational and safety risk

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

Core Business: Support the function of Council’s Audit, Risk and Improvement Committee (ARIC).

Environment and Climate Change

ARIC provides assurance through monitoring and evaluation of Council’s risk management and audit functions, including assessment that strategic and operational environment risks are managed and climate change impacts considered in governance frameworks.

Economic

The diversity of ARIC member’s skills and experience contribute to the value of advice and probity in financial management and the contribution of Council to the local economy.

Risk

Risk management is a key focus area of the committee terms of reference, and therefore a core set of skills that add value to the operation and advice provided by the committee to councillors and management.

Social / Cultural

Council as a key contributor to social and cultural infrastructure and services to the Bega Valley community. The function and benefit of independent members on the committee provide assurance that Council’s governance frameworks and decision making consider social impacts.

Attachments

1 ⇩. Audit, Risk, Improvement Committee Terms of Reference

2 ⇩. Guidelines for Risk Management and Internal Audit updated November 2023

Council 27 November 2024

Item 10.12

10.12. Code of Conduct Statistical Reporting 2023/2024

Council is required to report Code of Conduct statistics to the Office of Local Government (OLG) each year.

Director Business & Governance

Officer’s Recommendation

That Council receive and note the report to the Office of Local Government (OLG) regarding Code of Conduct statistics for the period 1 September 2023 through until 30 August 2024.

Executive Summary

Council is required to publish annual statistics on Code of Conduct complaints received that concern the Councillors and the Chief Executive Officer (CEO). The information must be reported to the OLG in a designated format for the period between 1 September 2023 through until 30 August 2024 each year. This report provides an overview of the number of code of conduct complaints made during that period.

Council received zero (0) code of conduct complaints during the reporting period.

Background

Part 11 of the Procedures for Administration of the Model Code of Conduct requires Council to provide the following information:

Part 11 Reporting on Complaints Statistics

12.1 The complaints coordinator must arrange for the following statistics to be reported to the council within 3 months of the end of September of each year:

a) the total number of code of conduct complaints made about councillors and the general manager under the code of conduct in the year to September (the reporting period)

b) the number of code of conduct complaints referred to a conduct reviewer during the reporting period

c) the number of code of conduct complaints finalised by a conduct reviewer at the preliminary assessment stage and the outcome of those complaints

d) the number of code of conduct complaints investigated by a conduct reviewer during the reporting period

e) without identifying particular matters, the outcome of investigations completed under these procedures during the reporting period

f) the number of matters reviewed by the Office and, without identifying particular matters, the outcome of the reviews and

g) the total cost of dealing with code of conduct complaints made about councillors and the general manager in the year reporting period, including staff costs.

11.2 The council is to provide the Division with a report containing the statistics referred to in clause 11.1 within 3 months of the end of September of each year.

Options

There are no options provided for this report.

Community and Stakeholder Engagement

Engagement undertaken

No community or stakeholder engagement was undertaken in relation to this report, or the data being presented to the Office of Local Government.

Engagement planned

There is no community or stakeholder engagement planned for this report or the statistics being presented to the Officer of Local Government.

Financial and Resource Considerations

Processing and recording information relating to code of conduct matters is included in Council’s general fund budget for the Governance and Records service.

Legal /Policy

As required by the Procedures for the Administration of the Model Code of Conduct, Bega Valley Shire Council will submit its return on code of conduct statistics to the OLG on 28 November 2024, being the day after the recommendations of this report are adopted by Council.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

This report has the following strategic alignment:

· 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

Environment and Climate Change

There are no environmental and climate change impacts related to the recommendation of this report.

Economic

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

Risk

Reporting publicly on code of conduct complaints provides the community with information about the activities related to the adopted code of conduct. It demonstrates, without identifying individual cases, that when Council receives complaints, they are dealt with appropriately. This administrative reporting process provides a control mechanism for management of reputational risk of Council.

Social / Cultural

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

Attachments

1 ⇩. 2024 Code of Conduct Returns

Council 27 November 2024

Item 10.13

10.13. 6.16 Draft Policy - Community Engagement

This report presents draft policy 6.16 Community Engagement that has been reviewed by relevant council officers in accordance with Section 165 of the Local Government Act 1993.

Director Business & Governance

Officer’s Recommendation

1. That Council places the revised policy 6.16 Community Engagement on public exhibition for a period of at least 28-days.

2. That a further report be presented to Council on any submissions received, or if no submissions are received, the exhibited document be adopted and published on Council’s website.

Executive Summary

This policy has been reviewed and revised to incorporate changes and references resulting from the 2024-28 Draft Community Engagement Strategy, to replace the existing Community Engagement Strategy endorsed by Council on 27 November 2019.

Additionally, the 2024-28 Draft Community Engagement Strategy will be presented at Council meeting on 27 November 2024, for endorsement to also be placed on public exhibition.

The draft policy aligns with purpose and objectives of community engagement for Integrated Planning and Reporting and public participation (IAP2) Frameworks.

Background

On 18 May 2022, 6.16 Community Engagement policy was endorsed by Council to be placed on public exhibition for a period of 28-days. It was subsequently then adopted by Council 17 August 2022.

This draft policy includes updated information and references on its scope and purpose, policy statement, responsibilities and other related policies relating to the 2024-28 Draft Community Engagement Strategy.

Options

That Council place this policy on public exhibition (recommended) and if no submissions are made, accept the proposed changes and adopt the policy.

Community and Stakeholder Engagement

It is a requirement under the Local Government Act 1993, that new or revised policies of Council be placed on public exhibition for a period of at least 28-days.

Engagement undertaken

Relevant Council Officers have been engaged internally as subject matter experts for the purpose of reviewing the content of this policy.

Engagement planned

The draft policy attached to this report if endorsed by Council, will be placed on public exhibition for a period of at least 28-days.

Submissions received will be considered for inclusion in the policy document. If submissions are received during the public exhibition period, a further report will be submitted to Council to adopt the final version of the policy.

When adopted, the policy will be published on Council’s website and the internal staff intranet.

Financial and Resource Considerations

The work undertaken to prepare the draft policy has been completed within Council’s approved general fund budget. Any future work regarding training and awareness about the policy and the 2024-28 Community Engagement Strategy will be completed using approved budget.

Legal /Policy

The review of the policy presented within this report is consistent with the requirements of Section 165 of the Local Government Act 1993, which states:

165 Amendment and revocation of local policy

(1) A council may amend a local policy adopted under this Part by means only of a local policy so adopted.

(2) An amending local policy may deal with the whole or part of the local policy amended.

(3) A council may at any time revoke a local policy adopted under this Part.

(4) A local policy (other than a local policy adopted since the last general election) is automatically revoked at the expiration of 12 months after the declaration of the poll for that election.

The review process ensures Council’s policies will be adopted within 12 months of the 2024 Local Government Election.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

Review and adoption of policies align with the following FY2024-25 integrated planning and reporting activity:

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

· Delivery Program A1.3 - Support Council’s community consultation and engagement activities

· Delivery Program E2.2 - Improve communication about Council activities, decisions and achievements

Environment and Climate Change

There are no environmental or climate change impacts related to the review of this policy.

Economic

There are no economic impacts related to the review of this policy.

Risk

Council engagement activities aid in managing risk by fostering open communication and collaboration with the community. By involving the community in decision making, Council can identify potential issues early, gather diverse perspectives and build trust. This helps mitigates risks and ensures that solutions are well informed, leading to more resilient and cohesive communities.

Social / Cultural

Regular review of council’s policies and availability of those policies and associated procedures on Council’s website ensures the community is informed about how council complies and implements legislation.

Community engagement is a vital component of Council’s decision-making process. It ensures that residents' voices are heard and considered. By actively involving the community, Council can make more informed and inclusive decisions that reflect the community's needs and aspirations. This enhances transparency and accountability and strengthens the connection between Council and the community.

Attachments

1 ⇩. DRAFT Policy 6.16 Community Engagement v 3 adopted - document for review or amendment

Council 27 November 2024

Item 10.14

10.14. Submission to Office of Local Government (OLG) - Councillor Conduct and Meeting Practices - Discussion Paper

This report is seeking Council endorsement of the submission to NSW Office of Local Government (OLG) on the “Councillor conduct and meeting practices discussion paper September 2024”.

Director Business & Governance

Officer’s Recommendation

That Council receive and note the Councillor conduct and meeting practices discussion paper September 2024.That Council endorse the submission tabled at the meeting and the submission be lodged to Office of Local Government.

Executive Summary

The OLG released a discussion paper on a new framework for “Councillor conduct and meeting practices”. This discussion paper has been prepared to seek the views of the community, key stakeholders and the local government sector about the proposed changes with submissions due by 29 November 2024.

It is recommended Bega Valley Shire Council lodges a submission to the discussion paper.

Background

The Councillor conduct and meeting practices discussion paper was issued from the OLG in September 2024. The paper raises various inefficiencies of the existing framework including the need for transparency and the respect in the community for the role that councillors have.

This paper provides an overview of the proposed new approach to both the councillor conduct framework and meeting practices. The proposals are to:

- Make OLG directly responsible for dealing with pecuniary interest and significant non-pecuniary conflicts of interest, with sanctions (suspensions and loss of pay) being determined by an appropriate tribunal or body,

- Refer behavioural based concerns about councillor conduct to a State-wide panel of experienced councillors to judge their peers,

- Reset the code of conduct to be similar to Parliamentary Codes, making it clear the expected patterns of councillor behaviour,

- Ensure the community can observe local democratic processes by banning closed to the public briefing sessions, while at the same time restoring the dignity and prestige of the council chamber.

These changes are only proposed for councillors and there is no change proposed for the code of conduct for Local Government staff. Feedback from stakeholders is that the existing code of conduct of staff remains fit for purpose and is largely effective.

The CEO provided councillors with a copy of the discussion paper on 4 October.

Options

A detailed review of the discussion paper has been undertaken to prepare a response for submission. It is recommended that the submission being tabled is endorsed so that it can be provided to the OLG.

Community and Stakeholder Engagement

Engagement undertaken

Internal engagement with staff has been undertaken to develop the submission for the OLG. Council staff have also considered matters raised by the Canberra Region Joint Organisation (CRJO) in preparing the submission.

The Director Business and Governance also attended a Local Government New South Wales (LGNSW) forum held to discuss the proposed changes on 5 November 2024.

Engagement planned

Council has been invited on several occasions to speak to submissions made to public inquiries. Our submission welcomes an invitation to further discuss our feedback.

Council’s submission is likely to be published as an open access document by the Office of Local Government.

Financial and Resource Considerations

The preparation of this submission has been undertaken as an operational activity funded by business and governance coordination budget.

Legal /Policy

The Office of Local Government will look to finalise necessary draft legislation, regulations and materials for implementation of the revised model over the coming year. Consultation will continue with the local government on the implementation of the revised framework.

Impacts on Strategic/Operational/Asset Management Plan/Risk

Strategic Alignment

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

Delivery Program: E1.1 Conduct day to day management of Council and support Councillors to undertake their role.

Environment and Climate Change

There are no direct environment and climate change impacts associated with providing this submission.

Economic

A code of conduct in local government enhances economic outcomes by promoting accountability, transparency, and ethical decision-making. Establishing clear guidelines fosters public trust and encourages community engagement, which are essential for effective governance.

Additionally, a well-defined code facilitates collaboration that can lead to more effective partnerships that drive economic benefits for the entire community.

Risk

Key risks identified from the review of the discussion paper relate to the volume and resolution of complaints and, transparency and accountability in decision-making. The code of conduct supports councillors to undertake their civic duties and at Bega Valley Shire Council will assist with risk controls for our reputational and financial strategic risks.

Social / Cultural

The review of the local government code of conduct endeavours to support elected officials to represent their communities in an equitable and inclusive way. The revised code will encourage open decision-making, allowing diverse community voices to be heard. It seeks to foster equity and inclusion, ensuring that all residents can actively participate in local governance. Overall, these changes are designed to create a more just and engaged society where everyone has the opportunity to participate in shaping their community.

Attachments

1 ⇩. Councillor Conduct and Meeting Practices Discussion Paper

2 ⇩. Councillor Code of Conduct BVSC Submission to OLG (circulated separately)

[1] Review of the budget for interest on investment are conducted as part of each Quarterly Budget review. This is due to Councils large capital program and the uncertainty in timing of payments required.

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	27 November 2024
*Item 8.1 - Attachment 1*	Section 4.15 Assessment Report

Council	27 November 2024
*Item 8.1 - Attachment 2*	Draft Conditions of Consent

Council	27 November 2024
*Item 8.1 - Attachment 3*	Proposed Development Plans

Council	27 November 2024
*Item 8.1 - Attachment 4*	Clause 4.6 Variation to Height Request from Applicant

Council	27 November 2024
*Item 8.2 - Attachment 1*	Minor Amendments Planning Proposal 2024

Council	27 November 2024
*Item 9.2 - Attachment 1*	Community Waste Grants Business Case 2025-2028

Council	27 November 2024
*Item 9.2 - Attachment 2*	BEEC Feedback to BVSC 2025 Grant Framework Proposal

Council	27 November 2024
*Item 9.4 - Attachment 1*	Merimbula Airport Master Plan 2043

Council	27 November 2024
*Item 9.4 - Attachment 3*	Development Approval (DA) Merimbula Airport Runway Extension

Council	27 November 2024
*Item 9.4 - Attachment 4*	Merimbula Airport Stage Two Runway Starter Extensions- application submitted to Regional Airport Program round 4 (RAP4)

Council	27 November 2024
*Item 10.1 - Attachment 1*	2024.11.27 - Attachment - Annual Report 2023-2024 - Final Draft

Council	27 November 2024
*Item 10.2 - Attachment 1*	Council report dated 20 September 2023 - 9.1.Tender award for the design, construction, operation and maintenance of an organics processing facility at the Central Waste Facility (RFT 10055231)

Council	27 November 2024
*Item 10.3 - Attachment 1*	Submission_Policy 6.23_Have your say

Council	27 November 2024
*Item 10.3 - Attachment 2*	DRAFT Revised Policy 6.23 Payment of expenses and provision of facilities for Councillors v 5

Council	27 November 2024
*Item 10.5 - Attachment 1*	Attachment 1: Bega Valley Shire Council community satisfaction survey Report Final

Council	27 November 2024
*Item 10.5 - Attachment 2*	BVSC CSS Hardcopy Survey July 2024

Council	27 November 2024
*Item 10.6 - Attachment 1*	Policy 6.07 Investment Policy v5 for Adoption

Council	27 November 2024
*Item 10.7 - Attachment 1*	Council report dated 16 October 2024 - Expression of interest for use of Council owned and managed reserves

Council	27 November 2024
*Item 10.8 - Attachment 1*	Quartlery Budget Review Statements Q1 - September 2024.

Council	27 November 2024
*Item 10.9 - Attachment 1*	Bega Valley Shire Council Annual Financial Statements 2024

Council	27 November 2024
*Item 10.10 - Attachment 1*	2024-28 Community Engagement-Strategy - FINAL DRAFT

Council	27 November 2024
*Item 10.11 - Attachment 1*	Audit, Risk, Improvement Committee Terms of Reference

Council	27 November 2024
*Item 10.11 - Attachment 2*	Guidelines for Risk Management and Internal Audit updated November 2023

Council	27 November 2024
*Item 10.12 - Attachment 1*	2024 Code of Conduct Returns

Council	27 November 2024
*Item 10.13 - Attachment 1*	DRAFT Policy 6.16 Community Engagement v 3 adopted - document for review or amendment

Council	27 November 2024
*Item 10.14 - Attachment 1*	Councillor Conduct and Meeting Practices Discussion Paper

Council	27 November 2024
*Item 10.14 - Attachment 2*	Councillor Code of Conduct BVSC Submission to OLG (circulated separately)