Agenda of Council - 12 December 2012

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 and Department of Local Government

Non-pecuniary – regulated by Codes of Conduct and policy. ICAC, Ombudsman, Department 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?

Whilst seeking advice is generally useful, the ultimate decision rests with the person concerned.

Agency advice

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
Division of Local Government (DPC)	(02) 4428 4100	dlg@dlg.nsw.gov.au	www.dlg.nsw.gov.au
NSW Ombudsman	(02) 8286 1000 Toll Free 1800 451 524	nswombo@ombo.nsw.gov.au	www.ombo.nsw.gov.au

TO: The General Manager
Bega Valley Shire Council

Disclosure of pecuniary interests / non-pecuniary conflict of interests

In accordance with the Council’s Code of Meeting Practice and the requirements of the Local Government Act and regulations or dispensation issued by the Division of Local Government I hereby disclose the following pecuniary interests and/or non-pecuniary conflict of interests at the meeting as indicated below:

Ordinary meeting held on _____ / _____ / 20___

dd mm yy

	Item no & subject
	Interest (tick one)	Pecuniary interest Non-pecuniary conflict of interest
	* Nature of interest
	If Non-pecuniary (tick one)	Disclose & vote Disclose & not vote Leave chamber

	Item no & subject
	Interest (tick one)	Pecuniary interest Non-pecuniary conflict of interest
	* Nature of interest
	If Non-pecuniary (tick one)	Disclose & vote Disclose & not vote Leave chamber

Signed
Print Name	Councillor

* Note: Under the provisions of Section 451(1) of the Local Government Act 1993 (pecuniary interests) and Part 6.11 of the Model Code of Conduct prescribed by the Local Government (Discipline) Regulation 2004 (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.

Council 12 December 2012

AGENDA

Presentation by IRIS Research

Simon Pomfret from IRIS Research will present to Council regarding Agenda Item 12.1: 2012 Community Survey.

1 Confirmation Of Minutes

Recommendation

That the Minutes of the Ordinary Meeting held on 21 November 2012 as circulated, be taken as read and confirmed.

2 Apologies and requests for leave of absence

3 Declarations

Pecuniary, Non-Pecuniary and Political Donation Disclosures to be declared and tabled.

4 Deputations (by prior arrangement)

5 Petitions

6 Mayoral Minutes

7 Adjournment to Standing Committees

RECOMMENDATION

That the Ordinary meeting of the Council be adjourned for the purpose of dealing with staff reports to Standing Committees.

8 Staff Reports – Planning and Environment (Sustainability)

In accordance with Council’s Code of Meeting Practice, this section of the agenda will be chaired by Councillor Britten

8.1 Delegation from Department of Fair Trading of Functions under the Plumbing and Drainage Act 2011..................................................... 13

8.2 Bundian Way Aboriginal Place Nominations..................................... 17

9 Staff Reports – Community and Relationships (Liveability)

In accordance with Council’s Code of Meeting Practice , this section of the agenda will be chaired by Councillor Seckold.

9.1 Cultural Setting Report and Social Issues Papers............................. 27

9.2 International Women's Day Event 2013............................................ 31

9.3 Bega Valley Palliative Care Project Proposal.................................... 39

10 Staff Reports – Economic (Enterprising)

In accordance with Council’s Code of Meeting Practice, this section of the agenda will be chaired by Councillor McBain.

10.1 Acquisition of Mobil Site - Market Street Merimbula.......................... 45

10.2 Land acquisition - Candelo.............................................................. 51

11 Staff Reports – Infrastructure Waste and Water (Accessibility)

In accordance with Council’s Code of Meeting Practice, this section of the agenda will be chaired by Councillor Fitzpatrick.

11.1 Tender 41/12 Bituminous Sealing of Various Roads within Bega Valley Shire.............................................................................................. 61

11.2 Tender 39/12 Periodic Supply and Delivery of Gravel....................... 63

11.3 Water Supply and Sewer Section 64 Contributions............................ 65

11.4 Pambula Sporting Complex............................................................. 71

11.5 Resident Permit Parking Schemes................................................... 77

12 Staff Reports – Governance and Strategy (Leading Organisation)

In accordance with Council’s Code of Meeting Practice, this section of the agenda will be chaired by Councillor Mawhinney

12.1 2012 IRIS Community Survey.......................................................... 83

12.2 Special Variation application s508A.................................................. 87

12.3 ICAC report Operation Jarek........................................................... 99

12.4 Certificate of Investments made under Section 625 of the Local Government Act 1993.................................................................. 105 .

13 Adoption of Reports from Standing Committees

RECOMMENDATION

That all motions recorded in the Standing Committees, including votes for and against, be adopted in by the Ordinary Council meeting.

14 Delegates Reports

15 Rescission/alteration Motions

16 Notices of Motion

16.1 Littleton Square Public Toilets....................................................... 111

17 Urgent Business

18 Questions On Notice

18.1 Cr McBain - Question regarding Site Options for a Central Waste Facility in the Bega Valley............................................................. 115

19 Questions for the Next Meeting

20.. Confidential Business

21 Adoption of reports from Closed Session

22 Resolutions to declassify reports considered in closed session

Council 12 December 2012 Item 8.2

8.2. Bundian Way Aboriginal Place Nominations

Council’s support is being sought for the nomination of three areas as Aboriginal Places as part of the Bundian Way project.

Group Manager Planning & Environment

Background

The Bundian Way is an ancient Aboriginal route between the Kosciuszko (Targangal) region and the Fisheries Beach (Bilgalera) area on the south western shores of Twofold Bay. The Bundian Way connects the highest part of the continent and the coast and brought together Aboriginal people from across the region, most notably for ceremonies associated with whaling in springtime at Twofold Bay and moth hunting in the high country during summer.

There are numerous historical accounts of early European Settlers being shown the Bundian Way by the local Aboriginal people, as the most efficient way to get from the Monaro to the Twofold Bay area. In recognition of this rich Aboriginal and European cultural history, the Eden Local Aboriginal Land Council proposes the route be a “shared history pathway”, recognised with heritage protection and used for educational and tourism purposes.

In order to formally protect important parts of the Bundian Way, the Bundian Way Management Committee is seeking to have a number of locations recognised as ‘Aboriginal Places’ under the National Parks and Wildlife Act (1974).

What is an Aboriginal Place?

An Aboriginal Place is a formal way of recognising and legally protecting Aboriginal cultural heritage, under the National Parks & Wildlife Act 1974. The Minister for the Environment may declare any public or private land in New South Wales, deemed to have special significance to Aboriginal culture, as an Aboriginal Place.

An Aboriginal Place must hold values that make it, or made it, of special significance to Aboriginal culture. Importantly, an Aboriginal Place can include areas which hold tangible values (such as law rings, birthing places, meeting grounds, rare or significant collections of Aboriginal objects) and non-tangible values (such as stories, rituals or spiritual values associated with a particular location or land form).

An Aboriginal Place can also be associated with intergenerational teaching, important historical events, formation of important organisations, births of historically or culturally important people and can be traditional or historical camp sites or settlements.

Proposed Locations of Aboriginal Places

Council has been asked to provide support for the nominations of three Aboriginal Places associated with the Bundian Way. (see Attachment 1)

1. Bilgalera Aboriginal Place (red outline) – an area encompassing existing Eden Local Aboriginal Land Council land at Fisheries Beach and a small area of State Forest.

2. Kiah Aboriginal Place (blue outline) – an area covering the lower Towamba River Estuary, Whale Beach, Torarago Point, Brierly Point, Davison Whaling Station, areas of State Forest and National Park, but excluding two private dwellings on the southern side of the Towamba River.

3. Beermunah Aboriginal Place (green outline) – an area covering the foreshore south from Boydtown Creek, along the cliff tops to Torarago Point.

The Eden Local Aboriginal Land Council has endorsed these nominations stating:

“The Eden Aboriginal community strongly supports Aboriginal Place nominations at Bilgalera, Kiah and Beermunah. These places have cultural values of the very highest order and strong meanings for the community…The cultural connections go all the way back to before recorded history.” (see Attachment 2)

ISSUES

Legal

An Aboriginal Place declaration does not change the land tenure or title. The current landholder retains their title to the land and does not provide any access rights for Aboriginal people. Access can only be gained by approval from the landowner and in accordance with a management plan developed for the Aboriginal Place.

As part of the assessment process the NSW Office of Environment and Heritage consults all affected landowners be they public or private. Once declared the Aboriginal Place is protected under the National Parks and Wildlife Act (1974).

Environmental

All three areas proposed for nomination as Aboriginal Places have important environmental values. A declaration of an Aboriginal Place would add further protection to these areas, the majority of which are proposed for Environmental Zoning under the Comprehensive Local Environmental Plan 2012.

Asset

There is only a minor section of Council owned reserve at Boydtown Creek covered by the nominations. All other lands encompassed by the nominations are National Park, State Forest or Crown Land managed by the Crown Lands Division of Local Land Services.

Economic

The Bundian Way has been surveyed and is being developed not only as a significant cultural route, but as a major tourism drawcard for the region. The local Federal member and Eden Local Aboriginal Land Council have been working to develop the route to a point to enable short and long walks from the coast to the summit. The walk is expected to feature in SCT and Cruise Eden tour packages.

Social / Cultural

The Aboriginal Place nominations are of significant importance to members of the Eden community. The areas covered by the nominations provide important cultural links between the local Aboriginal people and their ancestors.

Conclusion

The Bundian Way is a significant cultural heritage feature of national importance. The protection of key sites along the route of the Bundian Way is vital in ensuring that the Bundian Way’s cultural, environmental and tourism values are protected and enhanced.

The declaration and gazettal of the proposed Aboriginal Places will be an important milestone for the Eden Aboriginal Community and provide additional focus and recognition to the Bundian Way.

ATTACHMENTS

1 View. Map - Location of Proposed Aboriginal Places

2 View. Letter - Eden Local Aboriginal Land Council

Recommendation

1. That Council endorses the nominations of Bilgalera, Kiah and Beermunah Aboriginal Places.

2. That Council provides a letter of endorsement to the Bundian Way Management Committee supporting its nominations to the NSW Office of Environment and Heritage of the three Aboriginal Places.

Council 12 December 2012 Item 9.1

9.1. Cultural Setting Report and Social Issues Papers

The Cultural Setting Report and Social Issues Papers have been developed as informing documents for Council and the community. The documents are designed to highlight the current state of cultural activities and social issues within the Shire and will act as informing documents through the Community Strategic Plan review

Group Manager Community & Relationships

Background

The NSW Government has established Integrated Planning and Reporting (IP&R) legislation, requiring all councils to establish a long term strategic, infrastructure and financial framework. Bega Valley Shire Council’s Integrated Planning and Reporting framework was adopted in July 2009.

Through the transition to IP&R, the development of separate Social Plans and Cultural Plans are no longer mandated. Councils are strongly encouraged to incorporate social and cultural issues into the community strategic planning process. Council’s previous Social and Cultural Plans informed the development of the adopted community strategic plan, Bega Valley 2030.

While Council will no longer be developing separate planning documents, the need to highlight social and cultural issues and opportunities through briefing papers is recognised. The Social Issues Papers and the Cultural Setting Report are proposed to be an informing document for Council and for the community, and are expected to be dynamic. Where there is significant change or development in an area the papers can be updated or reviewed.

The Social Issues Papers are designed to give an overview of the social issues facing Volunteers, Aboriginal People, People from Cultural and Linguistically Diverse Backgrounds (CALD), People with a Disability, Older People, Men, Women and Young People in the Bega Valley. The papers are not intended to be an in depth study of each social issue but rather to highlight those issues and provide some context.

The Cultural Setting Report is designed as a document to inform on current cultural activity within the Shire, and identifies future opportunities and challenges of the cultural industry, community groups and Council.

ISSUES

Policy

Since adoption of IP&R, the development and adoption of Social Plans is no longer mandatory. The Cultural Setting Report and the Social Issues Paper have been developed in response to Council and community needs and will serve as informing documents to the Council’s Integrated Planning and Reporting Framework.

Asset

The Cultural Setting Report identifies community halls, museums, the Bega Valley Regional Gallery, public spaces, streetscapes, town identification and the Bega Valley Library as having cultural significance to the community. It draws on the recent study undertaken through South East Arts, auditing the cultural facilities and venues in the Shire.

Social / Cultural

The Social Issues Paper will be informing documents to raise awareness of the issues facing some of the more vulnerable groups in the Shire. This will assist Councillors in making informed decisions about the allocation of resources and the opportunity for Council to advocate on behalf of the community. The Social Issues Papers are also a resource for the broader community and community organisations providing information, statistics and supporting documentation for grant submissions or other funding applications.

The Cultural Setting Report aims to increase awareness and understanding of the significance and potential of the cultural life of our communities and to provide a platform for discussion with community, government and industry partnerships to enable cultural development, planning and support.

Indeed, the cultural aspects of living in the shire may be considered a ‘golden thread’ of the Community Strategic Plan that influences: the design and character of public spaces and buildings, the infrastructure that connects communities, the events that connects people, and the arts that attract custom into the shire.

Economic

The identification of the creative industries and employment growth opportunities in some community service sectors such as health and aged care are acknowledged as critical growth areas for the community.

Strategic

The Social Issues Paper and the Cultural Setting Paper will assist Council in the review of the Community Strategic Plan through providing background information on our community’s needs, capacity and directions.

Consultation

The development of the Social Issues Paper has been through targeted consultation with focus groups made up of community and agency representatives. This process has involved review and editing of final documents by specialists in various topic areas.

The development of the Cultural Setting Report was in consultation with Council’s Cultural Planning Committee and the broader community through the Creative Industries Seminar.

The recent Community Survey also tested the community’s sense of engagement in the areas they live and priority of services, such as those described in the Issues Paper and Cultural Report.

The Social Issues Paper and the Cultural Setting Paper are in draft and will now be placed on the website and circulated for broader community review and as previously noted will be continually updated when additional information from the 2011 census and other sources is available.

Financial

Social Issues Paper

· Design - $1,675 to date

· Photos - $1,000 (consultant engaged for photos)

Cultural Setting Report

· Final design cost at estimate of $650.

Funding source

Amount

Adopted Council budget in community strategic plan review & staff time

650

$

Adopted Council budget community service under the social plan review & staff time

9,675

$

Operational Plan

The development and adoption of the Cultural Setting Report and the Social Issues Papers will complement the Liveability theme area of the 2012/13 Operational Plan.

Conclusion

The Social Issues Papers and Cultural Setting Report have been developed in consultation with the relevant sectors of the community. The documents are dynamic. Where there is significant change or development in an area the papers can be updated or reviewed. The documents will serve to inform Council on social issues and cultural activities within the Shire, and will assist Council in informing the review and development of the Community Strategic Plan.

ATTACHMENTS

Nil

Recommendation

1 That Council note the Social Issues Paper and Cultural Setting Report,

2 That the Social Issues Paper and Cultural Setting Report be published for community comment and consideration in the review of the Community Strategic Plan.

Council 12 December 2012 Item 9.2

9.2. International Women's Day Event 2013

Expressions of Interest have been received to host an International Women’s Day (IWD) Event in 2013.

Group Manager Community & Relationships

Background

International Women’s Day (IWD) is a day to celebrate the gains women have made over the years, to bring attention to the issues that still face women today and to celebrate their significant contribution to our society. International Women Day is held annually on the 8^th March, the 2013 theme is “The Gender Agenda: Gaining Momentum”.

Council works in partnership with local organisations to host IWD celebration events each year. A small grant of $1000 is offered to the successful organisation to assist with the costs of the event, forum or workshop.

An IWD media release was distributed and the grant has been promoted across the Shire via networks and appropriate organisations and groups.

This is the fifth year that Council has called for an expression of interest to run an IWD event. Last year the successful applicant was the Women’s Resource Centre (WRC) which held a successful workshop and event that celebrated the 2012 Theme “Connecting Girls, Inspiring Futures”.

This year we have received two expressions of interest, one from the from The Women’s Resource Centre and one from Meals on Wheels Plus to run the 2013 IWD event. The expressions of interest are attached.

2013 International Women’s Day Proposals

Women’s Resource Centre

The Women’s Resource Centre (WRC) has been successfully operated by Southern Women’s Group for more than 24 years in the Bega Valley and successfully ran IWD celebrations in Bega over a number of years. In 2013 the Women’s Resource Centre are proposing to work with local women’s groups to conduct art workshops culminating in an exhibition at the Spiral Gallery in Bega from 8th– 20th March 2013.

The WRC IWD project will work with “Art on the Line - Letting it all hang out” program and the ‘Sistas Speak Aboriginal Wellbeing’ Program to develop art work for the exhibition. These programs will allow local women to explore this year’s theme -“The Gender Agenda: Gaining Momentum’” and offer an opportunity to showcase their new skills.

The WRC’s will encourage local women to participate in the community inclusive event in various capacities from contributing artists, workshop participants, guest speakers to musicians and entertainers on opening night. They will also produce a commemorative desk calendar incorporating local women’s artworks to mark 25th year of Southern Women’s Group Inc. supporting women in the Bega Valley.

Bega Valley Meals on Wheels Plus

This year is the first year that Bega Valley Meals on Wheels Plus (MOW) has applied for IWD event funding. MOW has been operating as a volunteer organisation since 1970 and as a cooperative since 1993.

Bega Valley Meals on Wheels Plus are proposing the coordination of a project to celebrate the contribution of women to the volunteering sector, including a history of Bega Valley organisations that were established by women volunteers.

The project would involve capturing and compiling a history of some of these organisations in the Bega including archive material, photos and oral histories that would culminate in an exhibition of a history of women’s volunteering in the Bega Valley.

The IWD Women volunteer’s exhibition oral history component post exhibition could form part of the local history section of the Bega Valley Shire Library.

ISSUES

Social / Cultural

Women are a target group in Council’s planning framework which highlights the areas of education, domestic violence and engaging isolated older women as key issues facing women in the Bega Valley. Events promoting the achievements of women are critical to breaking down barriers and highlighting those issues to the broader community.

Strategic

Council’s continued support of the International Women’s Day Event grant is a strategy to address issues reflected in the CSP theme of Liveable Place.

Financial

Funding is provided each year from the NSW Office for Women directly to local government to host International Women’s Day events.

Funding source

Amount

Grant Funding (NSW Office for Women’s Policy)

1000

$

Resources (including staff)

The successful organisation will be responsible for organising the event. The Community Development team will have minimal input in the event organisation.

Conclusion

The IWD event is an effective way for Council to support and promote Women’s achievements across the Shire. The partnership arrangement has worked well over a number of years and allows Council to work in conjunction with a local non-profit organisation to ensure the event is a success. As there are two well respected organisations it is appropriate that Councillors select the recipient organisation.

ATTACHMENTS

1 View. International Women's Day EOI 2013 Women's Resource Centre

2 View. International Women's Day EOI 2013 Bega Valley Meals on Wheels Plus

Recommendation

That (name to be inserted) be awarded the 2013 IWD grant of $1000 to host the (name to be inserted) event/program

Council	12 December 2012
*Item 9.2 - Attachment 1*	*International Women's Day EOI 2013 Women's Resource Centre*

Southern Women’s Group Inc.

14 Peden Street

PO Box 468 Bega NSW 2550

Phone: 02 64921367

Fax: 02 64921129

Email: wrcbega@bigpond.com.au

Web: www.southernwomensgroup.org.au

ABN: 25237570432

16/11/12

Expressions of interest - International Women’s Day 2013

Southern Women’s Group Inc. and the Women’s Resource Centre would like to work in partnership with the Bega Valley Shire Council to provide opportunities for women across the Bega Valley Shire to acknowledge and celebrate International Women’s Day in March 2013.

International Women's Day (IWD) is celebrated across the world each year on March 8. The day provides an opportunity for the community to recognise the achievements of women and their contribution to society. On this day, women can celebrate the progress that has been made but also contemplate those areas of women's lives where true equality has not yet been achieved.

2013 will mark 25 years of service from Southern Women’s Group Inc. to the women of the Bega Valley Shire. To commemorate this important occasion we will produce a desk calendar of women’s art from the Bega Valley. It will also contain the story of the women who initiated the Southern Women’s Group and who fought for the services that exist today including women’s Health nurse at community health, Sexual Assault Service, Women’s Refuge, Medium Term Housing, Women’s Domestic Violence Court Advocacy, the Domestic Violence Committee and Women’s Resource Centre. This was quite an achievement in the 1980’s from a small group of dedicated women and we will reflect and celebrate in 2013 the contribution these women have made to the benefit of all women in this community.

History

- The South Womens Group Inc is a feminist organisation established in 1988 and committed to the empowerment of women and the end of discrimination and exploitation. We provide a range of accessible information and referral, community development, capacity building and advocacy services for women and their children.

- WRC has successfully operated the International Women’s Day celebrations in 2007-2012 with approximately 60-100 women attending each event from around the Shire - Cobargo, Bega, Tathra, Kalaru, Wandella, Quaama, Wallaga Lake, Brogo, Merimbula, Candelo, Eden and Towamba

- WRC has been successfully operated by Southern Women’s Group for more than 24 years in the Bega Valley.

- Southern Women’s Group received the NSW Law and Justice Volunteer Award. The Southern Women’s Group has made a real difference over 20 years to the lives of women and children on the South Coast, especially those who are victims of domestic violence.

- Highly Commended for work with people with mental health issues

2013 International Women’s Day Proposal

WRC would like to present the International Women’s Day event in Bega for women throughout the shire to celebrate the theme ‘The Gender Agenda: Gaining Momentum’. The proposal includes

- Produce a commemorative desk calendar incorporating local women’s artworks to mark 25^th year of Southern Women’s Group Inc. supporting women in the Bega Valley.

- Host an art exhibition to be held at Spiral Gallery 8-20 March 2013

- Offer leading women artists from around the shire an opportunity to participate in the IWD exhibition

- Provide women throughout the Shire with a free canvas to explore the theme and their creativity – artists outside Bega area will be able to pick up/drop off canvases through the BVSC libraries at Bermagui, Eden and Merimbula

- Grant proposal to NSW Regional Arts Country Arts Support Program for an artist in residence project called “Art on the Line – Letting it all hang out”. In keeping with the theme it will create and explore art symbols that define women, femineity and domestic violence. It will raise awareness about women’s issues through the use of feminine symbols.

- Sistas Speak Aboriginal Wellbeing program from Narooma High School including Aboriginal girls from Wallaga Lake will again display their artworks which commenced a small business idea – Sistas Enterprises designing and creating cards

- Art workshops will all be arranged in conjunction with SEWACS Children’s support and tutoring group in Eden

- Host WRC art workshops that draw particpants from around the shire to particpate in the exhibiton to show case their new skills

- Invite a prominent woman to open the exhibition and discuss IWD theme at the event

- Invite women musicians to perform and provide entertainment on the opening night such as Heather Black and Tathra Women’s Choir

- Catering for opening will be provided

- SEWACS will support the event by purchasing the IWD people’s choice award vouchers

- The event and artworks will be promoted and featured on SWG WRC website.

International Women’s Day 2013 - Budget

Printing desk calendar x 50 $700

Catering for opening $150

Spiral Gallery Venue Hire $750

Invites and promotion $150

Administration $100

Art supplies $300 – free canvases and workshops

Art workshop – wages $500

TOTAL $2650

Southern Women’s Group – in kind $1650

Request BVSC support $1000

Council 12 December 2012 Item 9.3

9.3. Bega Valley Palliative Care Project Proposal

An opportunity exists to apply for funding to address the needs of people in the community that are palliative. Palliative care is care provided for a person with an active, progressive and advanced disease, who has little or no prospect of cure, and for whom the primary treatment goal is quality of life.

Group Manager Community & Relationships

Background

Bega Valley Shire Council’s Ageing and Disability team have been delivering case management services to older people, people with disabilities and their carers for the past 15 years. This program targets people with high and complex needs, is highly regarded, is labour intensive and is fully funded externally through the State and Federal Government.

An essential part of the programs’ agenda is to identify unmet need for the target group and to source funding to address that need. Issues for people in the Shire that are palliative represent a significant unmet need in the Bega Valley. As outlined in the NSW Government Plan there is a current proposal to increase access to palliative care over the period 2012-2016. Palliative care provides treatment for those who are dying and supports their families and carers. It neither hastens nor postpones death, but affirms life and approaches dying as a normal process. There is a lack of support services at a local level for people that are palliative to provide such things as social support, respite for carers and other services.

The majority of local palliative patients are end stage renal failure, end stage cardiac failure, end stage pulmonary disease and degenerative diseases such as Motor Neurone and multiple sclerosis. Currently Bega District Hospital deals with approximately 60 oncology hospitalisations each year. The Southern Local Health District is predicted to experience the highest increase in cancer incidence, or cancer related deaths, in NSW because there is a greater likelihood or developing cancer with increasing age (Cancer Institute NSW, 2011). This is in alignment with the high proportion of older people in the Bega Valley.

A local palliative care working group has been formed with representatives of NSW Health, NSW Cancer Council, Bega Valley Cancer Network, Bega Valley Shire Council and the community. The working group has identified the need for a volunteer based service (with a paid coordination position) to offer services to people whose condition has become palliative.

People living in rural areas have less access to palliative care services. Bega Valley Shire Council has been approached to auspice this program locally.

Funding through the NSW Department of Health for Community Based Palliative Care Services is currently available and seeks to expanded community based palliative care services in rural areas including volunteer programs.

It is proposed that the palliative service would be auspiced by Council through the current Ageing and Disability team. The program would work closely with the local NSW Health Palliative Care workers. Council has the internal structures in the areas of ageing and disability, volunteering and governance to manage the additional service.

The service would be structured around a paid position of two days per week to coordinate the activities of the volunteers and include responsibility for the recruitment, training and support for the volunteers that will be working with the palliative people and their families and carers. The volunteers would be primarily used in the last 3-6 months of life by way of in-home respite for families/carers when the client is mostly home or bed bound. At present there are no existing programs that have the capacity to provide this very specific service.

ISSUES

Strategic

Council’s position of addressing the needs of older people, people with disabilities and their carers is reflected in the CSP theme of Liveable Place.

Consultation

Consultation has been conducted through the establishment of the palliative care working group.

Financial

At this stage there is no financial consideration. Council staff will work closely with the working group and Council’s finance section to ensure that there all costs for the program are covered by the grant funding, should the application be successful. It is anticipated that funding of $160 000.00 over four years would be required to resource the program.

Resources (including staff)

There is capacity within the Community Services section, specifically the ageing and disability team, to prepare the funding application, in partnership with the local palliative care working group. If successful a 0.4 EFT position will be recruited, funded by the grant to manage the volunteer program.

Conclusion

The inclusion of a volunteer program to work with people that are palliative is a natural extension of the work that the Ageing and Disability team currently undertakes. It will address an identified gap in service provision in the local area and is well placed to sit with Council. The proposal has the support of local palliative care specialists.

A program such as this continues the service growth anticipated in the community strategic plan, noting these programs and staffing are fully funded by grants and fees.

ATTACHMENTS

Nil

Recommendation

That Council support the lodging of a funding application to the Community Based Palliative Care Program.

Council 12 December 2012 Item 10.1

10.1. Acquisition of Mobil Site - Market Street Merimbula

Advising Council of proposed settlement of 25-27 Market Street Merimbula.

General Manager

Background

On 29 September 2009 Council resolved to bid for the former Mobil fuel site in Market Street Merimbula, subject to certification the property had been remediated to residential standard. The offer of $1.5m plus GST was accepted, with settlement to take place by 30 November 2011. Settlement has since been deferred on 2 occasions while the remediation process continued. The deposit has accumulated interest over that period:

Council has further resolved, previously, as follows:

27 October 2009

That Council endorse the action of the General Manager to make the revised Expression of Interest for 25 – 27 Market Street, Merimbula as detailed in the report to Council dated 27 October, 2009, for $1.5 million (plus GST).

That the matter be deferred for further report, subject to satisfactory resolution of the terms contained in the revised Expression of Interest.

10 November 2009

That Council note the acceptance by Mobil of its offer to purchase 27 Market Street, Merimbula, inclusive of modified clauses in the contract enabling either party to rescind should the remediation works or environmental report not be complete to standard by settlement or by extension.

That the General Manager and Mayor be authorised to execute contract documents.

That following exchange of contracts, the reports on this matter be declassified.

Council has now been advised the remediation has been completed. Council has requested a report, certifying the works have met residential standard, from URS Australia Pty Ltd. Mobil have sought to settle before Christmas on the basis the contract stipulates a 14 day period after receipt of the environment certification. The URS report is expected to be received on 14 December, though an advance draft had been sought.

ISSUES

Legal

Council’s lawyers have advised that:

· under the conditions of Contract for Sale, the opinions expressed by URS Australia Pty Ltd in the report are not subject to review and Council cannot make any objection to or rescind the contract as a result of anything contained in the environmental report,

· the Council's review of the report is only in relation to whether URS’ opinion that the site has been remediated has been determined by reference to the 'Acceptance Criteria',

With that in mind, Council could agree to settlement occurring on 21 December 2012, provided the environmental report is provided on 14 December 2012. However if Council does not agree to settle on 21 December 2012, settlement must occur within 14 days of the provision of the environment report, that is, 28 December 2012 (if the report is provided on 14 December 2012). A settlement of 28 December is preferred to allow staff time to appraise the URS report.

A delayed settlement in the second week of January has been sought of Mobil's lawyers.

Environmental

The site has been the subject of demolition of buildings, removal of tanks and remediation of soils, including monitoring of soils for any potential leaching or contamination on the Mobil site and adjacent lands and waterway. Groundwater testing took place in the last week of November. If the results of those tests don’t raise any issues, then the environment report will likely be provided on 14 December 2012, concluding that the site has been remediated.

Asset

Council had been pushing Mobil for some time to enable access to the site to enable either temporary parking or turfing under licence to occupy in advance of settlement. Mobil has now advised it will allow Council access to the site before the Christmas period to enable it to be turfed by Council.

It is understood Mobil's environmental consultants will provide on-site water sampling test results by 28 November 2012. If these results are satisfactory, Mobil will then push for an accelerated settlement to take place prior to 21 December 2012.

Economic

The adopted Land Investment Strategy signalled the site would be considered as a development for commercial, retail, tourism or community uses, once one-third of the site is subdivided to enable the Merimbula CBD bypass. Recent expressions of interest were sought for this and other sites in Merimbula CBD, with community meetings held on 4 December.

Strategic

The Merimbula CBD bypass (see attached concept plan) has been scheduled for detailed design in 2014 for construction in several stages across 2014/17. Separately a CBD streetscape beautification project is scheduled in 2018/2019 after the Bypass is completed, preceded by a public domain masterplan.

The proposed CBD bypass utilises sections of Palmer and Park Street from Monaro/Market Street lighted intersection, before exiting onto Reid St onto the Merimbula Drive proposed roundabout.

The Draft Comprehensive Local Environmental Plan proposes to zone the site as B2 Local Centre which allows a wide range of retail, business, entertainment and community uses. The exhibited height control for this site was 7.5m, however Council has more recently reviewed all heights in the town centres of Merimbula, Bega and Eden resolving on 24 July 2012 to prepare a planning proposal to seek public comment on 13m (3 storeys) for this precinct.

Consultation

Council has been in discussion with Merimbula Chamber of Commerce regarding aesthetics of the site and opportunity to turf before the peak holiday season. Similarly the community had opportunity for discussions regarding Council’s Merimbula CBD lands potential uses and developments generally. The adjacent property owners will have detailed consultations once more complete designs for the proposed bypass are to hand.

Financial

The Long Term Financial Plan proposed borrowing for the purchase and utilising proceeds from any sale or lease to facilitate development of the remaining two-thirds of the site. The deposit of $150,000 has earned interest since it was paid in 2009. The deposit is invested until 5 January 2013. It will mature with a value of $194,330, with interest shared between Council and Mobil. The term deposit will be withdrawn (due to settlement) prior to maturity.

It is proposed to borrow the full $1.5m through Council’s banker ANZ on an Interest Only variable loan with a 5 year term with nil break costs, until Council has subdivided the site and determined what it intends to do with the remainder of the site. The interest rate for the IO variable is 5.21%. In comparison, an PI variable loan is 5.01%. Annual repayments of $78k may be met from development contributions and the retained deposit. The deposit will be placed in reserve to meet interest repayments and with interest, should cover up to 2 years of the interest only loan.

The cost to turf, water and temporarily fence the site is approximately $10,000.

Conclusion

The acquisition of 25-27 Market Street Merimbula had been resolved by Council on 29 September 2009 , with settlement deferred on several occasions by Mobil. On the basis a satisfactory environmental remediation report being to hand, settlement is proposed on 21 December 2012. The acquisition enables progress towards detailed design for the CBD bypass and negotiations with property owners along that route regarding any impacts on their properties to enable optimal alignment and gradient for the Bypass, and accommodation of alternate customer parking, bus parking and loading areas. The settlement also enables Council to progress towards sale, lease or development of the site once subdivision is complete.

A licence to occupy has been arranged to enable turfing of the site at Council’s cost and risk, noting the area would continue to be fenced until the turf has taken.

ATTACHMENTS

1 View. Merimbula CBD Bypass Map

Recommendation

1. That Council note the report and proceed to settlement of 25-27 Market Street Merimbula, with the Mayor and General Manager authorised to execute documents and apply Council’s seal

2. That a loan of $1.5m over 5 years be raised for the purpose of acquisition of 25-27 Market Street Merimbula, serviced by Merimbula roads and parking development contributions

3. That a licence to occupy be secured from Mobil and the site be turfed in preparation for the holiday season.

4. That the reports on this matter be declassified after settlement.

Council 12 December 2012 Item 11.3

11.3. Water Supply and Sewer Section 64 Contributions

The purpose of this report is to update Councillors on matters relating to Water Supply and Sewerage Section 64 Developer Contributions (s64 contributions) and their applicability to properties in the Bega Valley Shire.

The report also outlines a number of options for levying of s64 contributions prior to the revised Strategic Business Plan (SBP) and Development Servicing Plans (DSP’s) being considered by the community and adopted by Council in 2013.

Group Manager Infrastructure, Waste & Water

Background

In 2006 Council adopted revised Development Servicing Plans (DSP) for WaterSupply and Sewerage. The DSP informed the current s64 contributions and replaced a number of area based interim DSPs used to levy s64 contributions prior to 2006.

The current s64 contributions are levied on the basis of user pays and full cost recovery from all developers. Section 64 contributions are a significant revenue stream and are integral to Council’s Water Supply and Sewerage long term financial plan.

In 2011 Council commenced the review of the Strategic Business Plan (SBP) and Development Servicing Plans (DSPs) until NSW Office of Water advised that the DSP guidelines were under revision by IPART and recommended the Council review be deferred until the new guidelines were published.

At its meeting on 24 July 2012, Council resolved to receive a report on the options and impacts of not charging Section 64 headworks charges to lots that were legally created prior to February 2006, to community infrastructure projects on Council or Crown Land and to village lots under the DSP for water supply and sewerage.

On 9 August 2012 a comprehensive report was presented to Council in response to the matters raised on 24 July 2012, including the financial impacts of not charging s64 fees on those developments. That report advised: the strategic and policy position of the DSP to assume new developments generate load on the existing water and sewer systems, and therefore should make contributions and/or provide new infrastructure to augment those systems. The strategic and policy position of the DSP is to assign all of those costs to developers. The report also detailed the legal basis for the charges and progress of consultancy work being undertaken by NSW Public Works towards the adoption of revised DSP’s by 1 July 2013.

On 31 October 2012 a further report was presented to Council detailing the key impacts of new IPART Guidelines on future DSP’s and an update on their implementation. That report listed the matters to be considered in the DSP review including:

· Application of charges to council/community facility developments

· Differentiation of portion of capital works cost between new development, and existing users

· Comparison of headworks charges to other LWUs (noting Council has recently invested approximately $75 million in expanded modern sewer systems, requiring recovery of part of that capital cost over the next 10/20 years)

· Retrospective application of headworks charges to lots subdivided before adoption of the 2006 DSP

· Differentiated charges between towns, villages and catchments

· Scale of proposed augmentation works, having regard to changing demographics, growth patterns, and consumer behaviour towards sustainability

· Mapping DSP catchments to new LEP urban boundaries

At Council’s meeting on 21 November, Cr Fitzpatrick asked could a further report requested on 24 July 2012 be received by the next Council meeting?

SBP and DSP PROGRESS

Council staff and the consultants from NSW Public Works are working towards completion of SBP and DSP documents. The information required for completion of both documents is now well advanced and Councillors will need to consider the financial and other implications detailed in the documents. With this in mind, three workshops are planned in early 2013.

The first workshop, scheduled for 20 Feb 2013 will provide an overview of regulatory, business planning and s64 processes for water supply and sewerage utilities in NSW.

The second and third workshops scheduled for March 2013 will focus on the DSP documents and associated s64 contributions. The aim of the three workshops is to provide Councillors with the information they need to assess s64 charging options prior to the DSP’s being placed on public exhibition in May 2013.

ISSUES

Legal

The legal basis for levying of s64 contributions was detailed in the report of 9 August 2012. Nothing has changed in this regard and the contributions continue to be charged in accordance with the Water Management Act 2000 and Section 64 of the Local Government Act 1993.

Policy

Council’s current policy position is based on complete cost recovery with no cross subsidy inputs by the wider customer base. Further, as a single charge per ET, no separate (higher) charges apply for example in village areas. The policy position has remained unchanged since 2006. A move away from the current policy position, pending adoption of new DSP’s may financially expose Council.

It is considered the purpose of the 21 November meeting question was to assess whether an interim change of policy may be deployed in advance of the comprehensive DSP review, with a view to stimulating residential development and community projects in the Shire. In this regard legal opinion is being sought over the wording and effect of a moratorium on s64 charges from say 1 January 2013, for some pre 2006 lots and community infrastructure projects.

Asset

S64 contributions are used to fund new water supply and sewer assets utilised by all growth related development.

Economic

There is substantial debate over the impact that s94 and s64 charges have on economic development. A more substantial commentary was provided in the report of 31 October 2012. A copy of this report is appended for completeness.

Councillors are yet to consider the combined and related effect of s64 (water and sewer) and s94/s94A (general) development contributions in the context of the long term financial plan and potential impacts of those contributions on development activity.

Strategic

The Water and Sewer DSP’s and SBP documents currently being drafted detail the capital works proposed for the Shire particularly over the next ten years. The DSP’s will reflect the SBP level of service and capital works goals, with appropriate reference to the adopted asset management plans (AMPs).

Consultation

The Water Supply and Sewer DSP’s were adopted by Council after extensive public consultation. A change to the policy position now may require additional public consultation because of the cross subsidy implications for the broader customer base.

There is a strong argument that this consultation should be incorporated into the public exhibition period leading up to the adoption of the revised DSP documents in 2013. However legal opinion is being sought over the wording and effect of a moratorium on s64 charges for some pre 2006 lots and community projects.

Financial

A substantial financial commentary was provided in the 31 October 2012 report. In broad terms, the funds required to cater for water supply and sewerage scheme operation, maintenance and capital renewals are provided by the existing customer base. The funds required to cater for growth related capital works are derived from s64 contributions from developers. The s64 contribution income accounts for approximately 25% of the total income needed to fund capital works.

Resources (including staff)

Significant staff and consultant time has already been devoted to the revision of SBP and DSP documents. It is expected that over $200k will be expended by the time the DSP’s are adopted by Council in 2013.

Conclusion

The conclusions drawn in the report of 9 August 2012 are still relevant to the discussions over the ongoing policy position of Council. However there are a number of options for Council consideration at this late stage.

The financially prudent option is to retain the current policy position until the matter is fully considered as part of the DSP review.

Alternatively Council could place a moratorium on collection of s64 charges for old lots (to a maximum of 1 ET per lot) and community infrastructure projects until adoption of the new DSP. As mentioned previously, legal opinion is being sought over the wording and effect of such a moratorium. It should be noted however that such a moratorium would not extend to s64 sewer contributions associated with any lots recently serviced as part of the Bega Valley Sewerage Program (on the basis that sewer was never available in the past).

If the moratorium option were allowable and adopted by Council then a relatively small amount of s64 income would be foregone over the next 7 months. A more significant potential problem is that developers who have paid s64 charges since 2006 may feel the need to seek reimbursement based on Council’s perceived change of mind.

ATTACHMENTS

Nil

Recommendation

That the current s64 policy position be retained until the matter is fully considered as part of the formal DSP review process scheduled for adoption in mid-2013.

Council 12 December 2012 Item 11.4

11.4. Pambula Sporting Complex

This report has been prepared to present Council with the concept plan for the future development of the Pambula Sporting Complex, as prepared by the Pambula Sporting Complex Committee.

Group Manager Infrastructure, Waste & Water

Background

Council at its meeting of the 21 November 2012, received a Progress Report on the 2009/2010 Special Variation for Sportsgrounds and adopted the following recommendation:

“1. That following adoption of the Pambula Sports Complex Master plan:

· The matter of the funding proposal of the $150,000 for Pambula Sports Complex, from the special rate variation, be deferred for consideration by the General Sports and Recreation Committee (GSRC).

· That Council apply $100,000 from the Crown Lands contribution to Council for the renewal of Recreation Facilities in the shire, to the Pambula Sports Complex.

2. That Council note and endorse the project list and progress as attached”

In accordance with Part 1 of the above recommendation, Council has received from the Pambula Sporting Complex Committee a plan titled as the master plan for the Complex. The plan as attached to this report represents a concept plan for future development of the site, rather than a more comprehensive master plan.

By way of background, Council will recall previous discussions on the management of Council’s recreational and sporting facilities and that such were managed and operated without documented strategic plans or plans of management and having only limited operational / maintenance plans.

In order to rectify the situation, Council has been working towards preparing a suite of documents that will inform the community, assist / guide operational committees and provide a management tool for Council staff. In the case for sportsgrounds, these documents include the following:

· Generic Plan of Management - completed and adopted by Council in December 2010. The generic Plan of Management establishes core values and objectives as well as identifying management issues and broad based action plans.

· Recreation Asset Management Plan (RAMP) - completed and adopted by Council November 2011. The RAMP documents Council’s recreational assets, condition and lifecycle cost profile and establishes the asset hierarchy and levels of service.

· Facility Development / Management Plan (FMP) - currently being prepared for each of Council’s six major sportsgrounds. It is within this context that the term master plan is being used. It is the key document, as it will be site specific and document current / future demand, levels of service, operation, maintenance, renewal and upgrade funding programs.

The Pambula Sporting Complex concept plan, as submitted, represents only part of what a FMP would contain as it generally only describes future development and upgrading of the facility.

Works proposed include:

	Description	Estimate (exc. GST)
1	Contribution to establishment of squash courts (2 years)	$90,000 p.a.
2	Installation of underground power for future lighting	$15,000
3	Irrigation extension to new grounds	$7,000
4	Car park next to Aquatic Centre (bitumen spray seal)	$24,000
5	Relocate old and construct new storage sheds	$32,000
6	Car park to RHS of AFL ground (bitumen spray seal)	$200,000
7	Access road next to pool car park and boundary (concrete)	$110,000
8	Access road pool car park to new car park (bitumen spray seal)	$72,000
9	Renovations and extensions to existing clubhouse	$450,000
10	New 1,800m² multipurpose building and 200 m² stage	$3,900,000

ISSUES

Legal

The Pambula Sporting Complex is Crown land, managed by the Pambula Sporting Complex Committee on behalf of Council as trustee. As such, the Committee manages the maintenance of the grounds and facilties, and raises and collects usage fees.

Policy

Development of the Pambula Sporting Complex is generally consistent with the Generic Plan of Management and the Recreational Asset Management Plan.

Environmental

The site is partially developed and additional development will have additional environmental damage. Future construction and existing facility improvements will include appropriate sediment and erosion control measures.

Sustainability

The development of the site will lead to increased energy, water and waste usage.

Asset

The Recreational Asset Management Plan (RAMP) identifies the Pambula Sporting Complex as a regional facility. The focus of the RAMP is on financial sustainability of existing assets at the required levels of service. Therefore, given existing funding levels, emphasis is on the renewal of existing assets and complimented by a rationalisation program based on location, usage and population demographic. The extension and upgrade of recreation assets at was anticipated in the RAMP however, it was limited in size and scope and subject to needs and / or demand analysis. This has not been undertaken at this stage.

Social / Cultural

Recreational facilities are key elements in the Bega Valley Shire Community Strategic Plan in the theme areas of Accessibility and Liveability.

Consultation

Both the Generic Plan of Management and Recreation Asset Management Plan have been publicly exhibited. No separate consultation has been undertaken for the proposed concept plan provided by the Management Committee. However, the Committee directly represents users of the facility.

Financial

Funding for asset upgrades at Pambula Sports Complex is provisioned in the LTFP as outlined in the Council report of 21 November 2012, in which $150,000 was proposed to be provided from the Special Rate Variation for sporting and recreational facilities, subject to endorsement by the General Sportsground and Recreation Committee, and $100,000 from the LPMA Crown Lands contribution.

Resources (including staff)

Considerable staff and project management resources are involved in the management and delivery of recreational projects. The matter of appropriate recreation asset planning and operationanal resources will be considered with the Organisation Structure review.

Operational Plan

While individual projects as proposed in the works schedule of the concept plan were not listed, funding levels of $250,000 were provisioned in Council’s 2012/2013 Operational Plan.

Conclusion

The concept plan prepared by the Pambula Sporting Complex Committee represents the future upgrade program, which will form part of the Facility Management Plan (FMP) (aka Master Plan), currently being prepared for the Pambula Sporting Complex.

In the absence of the Facility Management Plan (FMP), it is difficult to provide an overall context for the development proposals envisaged in this concept plan. On one hand, the Complex is a regional facility and therefore a significant part of the Shire’s recreational infrastructure. On the other hand, a clear demand analysis (squash courts) and ongoing financial sustainability of existing undertakings (aquatic centre) and infrastructure renewal backlog (club house and amenities) remain unanswered questions.

The provision of funding for the regional facility may assist securing matching grants.

In the context of the proposal for funding from the sport and recreation levy, the GSRC should be invited to comment on the concept plan and consider the projects from the works schedule likely to be submitted for funding from the levy - notionally up to $150,000 a year for the remaining two years of the levy.

ATTACHMENTS

1 View. Pambula Sporting Complex Master Plan

Recommendation

1. That Council refer the Pambula Sporting Complex concept plan to the General Sportsground and Recreation Committee for comment and consideration for provisional funding of up to $150,000pa for Complex projects over 2013/152. That the matter be reported back to Council.

Council 12 December 2012 Item 12.1

12.1. 2012 IRIS Community Survey

Council has engaged IRIS Research to conduct the third of its triennial community satisfaction surveys. Preceding surveys were conducted in 2006 and 2009.

Group Manager Community & Relationships

Background

IRIS Research Pty Ltd is affiliated with the University of Wollongong and is regarded as a leader in the conduct of local government community surveys. IRIS undertook its first survey of the Bega Valley Shire residents in 2006 and followed this with a second satisfaction and priority survey over March-April 2009. This third survey will allow Councillors, staff and the community to view a longitudinal progression over the three survey periods in relation to the importance and satisfaction results for various Council services and assets.

At the time of preparing this report for the Business Paper the assessment report was not available from IRIS Research. The report will be provided to Councillors on 5 December 2012.

Council staff will be providing an overview of the survey results which will be presented at the Councillor Workshop on 5 December 2012. A formal presentation will be made to Council on, by IRIS representatives on 12 December 2012. The presentation will provide details of the outcomes from the 2012 survey.

The survey was conducted as a telephone-based survey, aiming to secure a response from 800 residents (approximately 150 from each of the following areas: Eden and surrounds, Merimbula and surrounds, Bega and surrounds, Bermagui and surrounds and rural areas) from throughout the Bega Valley Shire Council area.

Respondents had to be permanent residents of the Bega Valley area for 6 months or longer. Respondents also had to be aged 18 years or older to qualify for an interview.

Residents who were not contacted in the random telephone survey were also able to complete the questionnaire via a link on Council’s website to the

The questionnaire design was based on the five theme areas of the Community Strategic Plan. Respondents were asked about their level of satisfaction in relation to:

· A Liveable Place

· An Enterprising Place

· A Sustainable Place

· An Accessible Place

· A Leading Organisation

Respondents were asked to rate each factor using a Likert Scale (1-5), ranging from very dissatisfied to very satisfied.

ISSUES

Social / Cultural

The sampling process implemented by IRIS Research is designed to encompass a cross section of people from different areas within the Bega Valley Shire, in particular the five main areas of Bermagui and surrounds, Bega and surrounds, Merimbula and surrounds, Eden and surrounds and Rural Areas.

Strategic

The outcome of the Community Survey will have an impact on the Community Strategic Plan and it may have a trickle-down effect on numerous other planning documents such as the Long Term Financial Plan, Operational Plan, and Delivery Plan.

Consultation

The random sampling of 800 residents within the Bega Valley Shire provides a significant opportunity to engagement with local residents on their perceived satisfaction level regarding the services provided by the Bega Valley Shire Council.

Although the sampling was done via telephone survey, local residents were advised that they could complete the survey online through Council’s website.

Financial

The quote from IRIS Research to conduct the Satisfaction Survey was $36,930.00. In 2009 the quote was $38,000.00. This is included in the Council’s adopted budget in the community strategic plan review process and is funded from the 2011/12 financial year revote in this area adopted by Council. The survey was originally planned to be held in May 2012 however it was held over until the election of the new Council.

Resources (including staff)

A small team has worked significantly hard on ensuring the Community Satisfaction Survey was designed, implemented and reported on in the given timeframe; in particular the Communications Coordinator, Community Planning Coordinator and the Community & Relationships Group Manager and Administration Coordinator.

Conclusion

The process of designing, implementing and reporting the findings of the survey has been a successful process. The service provided by IRIS Research has been very professional and efficient. All timeframes have been met due to the cooperation between Council staff and the management of IRIS Research.

A final copy of the survey results will be made available in draft form by Wednesday 28 November. The draft report will be presented at the Councillor Workshop on December 5, with an official presentation being made to Council, by IRIS on Wednesday 12 December.

ATTACHMENTS

Nil

Recommendation

1. That Council note the 2012 community survey report and publish the report electronically on the Council’s website.

2. That the results of the 2012 community survey be used in the review of the community strategic plan and associated planning documents.

Council 12 December 2012 Item 12.2

12.2. Special Variation application s508A

Council is required to advise the Independent Pricing and Regulatory Authority (IPART) of its intention to consider lodging an application to vary rate income above the local government cost index by Friday 14 December 2012.

Group Manager Community & Relationships

Background

At its meeting on 31 October 2012 Council resolved:

1. That Council consider the need to review the direction of the current Community Strategic Plan following receipt of the results of the community survey and the consultation in relation to the special variation application.

2. That Council receive a report at its 12 December meeting:

· to consider the Community Survey and Special Rate Variation Poll,

· to formally consider whether to lodge an intention to apply for a Special Rate Variation, noting the final decision to formally lodge an application for a special rate variation will be considered at the February 2013 meeting.

3. That Council undertake a community engagement process to gather information in relation to the proposed special variation applications.

This report provides the next stage outlined in points 2 and 3 of the resolution.

Most councils in NSW increase their general income (mainly rate income) in line with the rate peg percentage set by IPART each year. However, the Local Government Act 1993 provides for councils to apply for a ‘special variation’, enabling the council to increase its general income by more than the rate peg. Councils may apply for a special variation under section 508(2) or 508A to increase their general income in the next year or for a number of years (up to seven consecutive years). Bega Valley Shire Council has successfully applied for enduring s508(2) rate variations for a mix of asset renewals/upgrades, or retention of services (libraries/lifeguards/weeds/tourism). The variations for recreation/community access has a five year term expiring in 2014, while the airport renewal variation has a 20 year term expiring in 2031.

Rate Peg 2013/14

The IPART advised councils on 26 November 2012 that it had determined that NSW councils may increase their general income by 3.4% under section 506 of the Local Government Act 1993 for the rating year commencing 1 July 2013.

Since 2011/12, IPART has set the rate peg under a delegation by the Minister for Local Government. The rate peg decision has been announced earlier than in past years to help councils to undertake their planning and budgeting with greater certainty.

The rate peg determination was calculated using the following approach:

· the increase in the Local Government Cost Index (LGCI) in the year to the September quarter 2012 of 3.7%

· deducted a productivity factor of 0.2%

· deducted 0.1% to remove part of the carbon price advance of 0.4% that was included in the rate peg last year.

The rate peg of 3.4% represents the maximum allowable increase to councils’ general income in 2013/14. A copy of the IPART information paper on the 2013/14 rate peg can be found on the following website:

http://www.ipart.nsw.gov.au/Home/Industries/Local_Govt/Fact_Sheets_Information_Papers

Increase in the LGCI

IPART constructed the LGCI in 2010 following a survey of councils in NSW about their expenditure in 2008/09 and 2009/10. They used the change in the LGCI in the year to September 2012 to inform the rate peg. This is the latest available information at the time the rate peg was set. The change in the LGCI in the year to September 2012 was 3.7%. The major factors determining this increase were employee costs, construction costs and electricity prices.

Productivity Factor

IPART has deducted a productivity factor of 0.2% which is the same level as in previous years. Council is advised that productivity gains were equivalent to 0.3% per annum over the last 15 years in the market sector. IPART has discounted this number to 0.2% in recognition that factors in the market sector may cause productivity growth to be higher than in the local government sector.

Reversal of carbon price advance

IPART has included a carbon price advance of 0.4% in the 2012/13 rate peg as the LGCI in the year to September 2011 did not include the impact of the carbon price on council costs (since it was based on price data up to the September 2011 quarter and the carbon price was introduced from July 2012). This was announced at the time of setting last year’s rate peg, and now IPART have now removed 0.1% of the carbon advance this year to avoid double counting the impact of the carbon price as it will eventually be reflected in the LGCI. IPART will remove 0.3% from the rate peg in 2014/15.

Variation of Domestic Waste Management Service Charges

NSW councils recover their waste management costs by levying charges based on the reasonable costs of providing the services. This will continue to be the case.

IPART has not specified a percentage, in terms of section 507 of the Local Government Act 1993, by which the amounts of annual charges for domestic waste management services may be varied for the rating year commencing 1 July 2013. This has the effect that IPART (as delegate of the Minister) has placed no limitation on variations to the domestic waste management services charge. However, the amount of the charge remains subject to section 504(3) of the Act and councils should review their waste management operations in determining the reasonable cost of providing those services. Council’s current position is that Bega Valley waste charges will increase by an amount equivalent to rate peg increase or 3.4% in 2013/14.

Special Rate Variation

The rate variations are a one-off % lift in total general rate income. If they expire, the value of a rate variation (including effect of rate pegs) is removed from the total rate income. Applications to IPART include the anticipated value of the rate peg, plus the amount above rate peg that is sought. For example, while Council may lodge an application for the proposed 2% above rate peg for collector roads, the application will cite an increase of 5.4%, including the announced rate peg at 3.4%.

IPART assesses council applications for special variations using criteria set by the NSW Government. The criteria are set out in guidelines provided by the Division of Local Government. A copy of the guidelines is available on the Division of Local Government website at

http://www.dlg.nsw.gov.au/dlg/dlghome/documents/Information/Guidelines%20for%20the%20preparation%20of%20an%20application%20for%20a%20special%20variation%20to%20general%20income%20-%20October%202012.pdf

There are two types of special variation applications s508(2) and s508A.

· S508(2) application – a one off increase to general rate income for a specific purpose that may be for a set time or a permanent increase

· S 508A application – a multiyear series of increases (for up to seven years) which may be for a set period or permanent.

For s508(2) applications, councils must show there has been ‘adequate community consultation regarding the special variation’. For 508A applications, councils must show ‘demonstrated community support for the special variation’.

In assessing whether a council’s application satisfies the relevant criterion for community consultation, IPART will consider the following principles:

· that the council clearly communicated the impact of proposed rate increases on ratepayers about the special variation application, not just a small section of the community that attends a community meeting or undertakes a survey.

· that the council clearly communicated what the special variation will be used to fund.

In relation to lodging a (permanent) s508A application, Council must have completed its Community Strategic Plan and all associated plans and reports - in particular outlining the special variation in the relevant Asset Management Plans and the LTFP. Bega Valley Shire has outlined the intent and focus of its proposal within those documents as required.

In discussions with IPART, it is apparent that special variation applications will only be considered where they are linked to a Council’s forward planning.

· June 2012: Council adopted its revised Long Term Financial Plan and Delivery Plan and the 2012/13 Operational Plan in which the special variation application is outlined as proposed in this report to Council.

· November 2012: Council has consulted with its community in two projects (1) a general community survey and (2) a targeted survey to gain input into its deliberations in relation to continuing with a special variation application.

· 12 December 2012: Council consider notification to IPART of its intention to lodge a special variation application in 2013, via resolution at the Council meeting.

· 14 December 2012: if Council resolves to proceed to the next stage, IPART will be notified of Council’s intention to lodge an application if, following receipt of community input, it resolves to do this.

· 6 February 2013: if Council resolves on 12 December to progress the special variation application, Council will consider at its meeting on 6 February 2013 the formal lodgement of the application which will be required to be lodged on 11 March 2013.

Consulting with the community

Councils are required to engage with their community in relation to special variation applications and be able to demonstrate support for a s508A application. Councils may use a range of methods to consult with their community in relation to special variation applications. The manner in which Council does this may include, but is not limited to, mail outs to ratepayers, fact sheets, media releases, public meetings, listening posts, and online discussion forums.

Information must be presented in a way that community members can understand, clearly explaining what the special variation is being sought for. For example, it may be for a program of works, to address infrastructure backlogs, or for service enhancements.

Councils must be able to show that the information they present to the community is transparent and clearly identifies the impact of any proposed rate increase on ratepayers. Information should not be presented so as to minimise the perceived impact of the increase. It must show:

· that the requested special variation includes the rate peg

· that multi-year increases in rates are cumulative

· if the rate increases will remain permanently in the rate base of the council or be removed after a fixed period (as section 508(2) applications may be for a fixed period only)

· if the council has an expiring special variation which it intends to continue or incorporate into general revenue into the future rates and rate increases should be presented on an annual and a weekly basis

· increases in other charges, such as for waste management, where these are likely to exceed CPI increases.

Councils should also show the impact of not applying for, or not having the special variation approved. For example if reductions in particular services are likely, or if certain projects will not go ahead if the special variation does not proceed, this should be made clear to ratepayers. Councils will need to present a realistic scenario to the community. Councils should not present a worst-case scenario or threaten ratepayers with unrealistic cuts in the most popular community services.

Expiring Special Variations

Councils need to explain clearly, where relevant, that a special variation is being used to replace an existing special variation, such as the recreation/community access levy. This is true whether the levy is to apply permanently or for a limited number of years.

Councils should inform their communities:

· that an existing special variation is about to expire or will do so during the period covered by the application for a special variation

· that the year-on-year impact on rates would not be as great or would decrease if the special variation is not approved and only the rate peg was applied

· if applicable, that an expiring special variation is being replaced with a permanent increase to the rate base

· that the special variation includes the value of any expiring special variation and any additional rate increase that is being sought by the council

· the effect of the special variation on rates may differ from the year-or-year change in rates if a special variation would have otherwise expired.

Bega Valley Shire Council s508A special variation proposal

As outlined in Council’s adopted LTFP, AMPs and Bega Valley 2013 (Operational Plan) and reported to Council, the following model is proposed:

1. New 2% one-off permanent increase above the 3.4% rate peg in 2014, for renewal of collector roads (defined below). This variation will raise the general rate yield by an estimated $400,000 in 2014 and then be indexed by LGCI on an ongoing capacity. Total increase 5.4%.

2. Retained 2.4% one-off permanent increase above rate pegging in 2015 to retain the expiring recreation and access approval, with the options to use this amount for debt servicing or for annual project works in line with the LTFP for recreation asset renewals (defined below). This variation will retain the general rate yield at an estimated $507,000 and then be indexed by LGCI on an ongoing capacity.

3. New 2% one-off permanent increase above rate pegging in 2016 for infrastructure renewal for public domain areas and buildings (defined below). This variation will raise the general rate yield by an estimated $440,000 and then be indexed by LGCI on an ongoing capacity.

Full details of the proposed items were included in the last report to Council.

Impact of the special variation on rates

The amount and impact of these two new and one retained special variations is outlined in the table below. This table shows the impact on average rates as calculated using the preferred model by IPART - this is the amount of income derived by general rates from a rate category divided by the number of properties.

Council has traditionally used the land value method, which is more accurate indicating the rate per category based on the average land value per category, together with the upper and lower thresholds (ie 10^th and 90^th percentiles). However it is appropriate to revert to the format IPART requires for its assessment.

Table 1 below shows the impact on average rates with and without a special variation of 2% for 2 years - 2013/14 and 2015/16, and the continuation of an expiring special variation in 2014/15.

The approved rate peg for 2013/14 of 3.4% has been included in the 2013/14 year, while a rate peg of 3% per annum is assumed for all subsequent years.

(note – this table varies slightly from that published in the brochure recently circulated to respondents to the Council survey on the special variation - this is due to the advice last week from IPART including the exact rate peg amount).

	2012/13	2013/14 (1)	2014/15 (2) #	2015/16 (3)	2016/17
Residential rates without SV (rate peg only)	$901.50	$932.15	$937.74	$965.88	$994.85
Residential rates with SV	$901.50	$950.18	$978.69	$1.027.62	$1,058.45
Impact of SV	$0.00	$18.03	$40.94	$61.74	$63.60
Cumulative impact of SV	$0.00	$18.03	$58.97	$120.72	$184.31
	2012/13	2013/14 (1)	2014/15 (2) #	2015/16 (3)	2016/17
Farmland rates without SV (rate peg only)	$1,742.07	$1,801.30	$1,812.11	$1,866.47	$1,922.47
Farmland rates with SV	$1,742.07	$1,836.14	$1,891.23	$1,985.79	$2,045.36
Impact of SV	$0.00	$34.84	$79.12	$119.32	$122.90
Cumulative impact of SV	$0.00	$34.84	$113.96	$233.28	$356.17

Business rates without SV (rate peg only)	$2,331.99	$2,411.28	$2,425.75	$2,498.52	$2,573.47
Business rates with SV	$2,331.99	$2,457.92	$2,531.65	$2,658.24	$2,737.98
Impact of SV	$0.00	$46.64	$105.91	$159.72	$164.51
Cumulative impact of SV	$0.00	$46.64	$152.55	$312.27	$476.78

# Impact of the expiring variation can be seen in 2014/15 as:

· A decrease in rates in the case without the 2.4% special variation

Consultation

A number of options for capturing community feedback have been put in place:

· an online survey – included in the community survey

· rates fact sheets and brochure has been prepared and circulated as part of the deliberative survey to date

· a deliberative random survey has been carried out with participants provided a copy of the rates fact sheets brochure

· online discussion forums will be established if Council resolve to consider to continue to notify IPART of an intention to lodge an application

· online rates calculator has been established

· advertising will be established if Council resolve to to notify IPART of an intention to lodge an application

· discussions at community meetings or with particular community groups.

A copy of the IPART fact sheet for Council’s on community consultation for special variation applications can be found on the IPART website at:

http://www.ipart.nsw.gov.au/Home/Industries/Local_Govt

Deliberative survey

In order to meet the requirements of IPART in relation specifically to special rate variation options, councils can also include a deliberative poll.

Following the Council meeting on 31 October 2012, Council put in place the following actions:

· a deliberative independent survey

· development of a rates fact brochure

· online survey and rates calculator linked through Council’s website

In relation to the deliberative survey, Council has provided an information pack to around 800 individuals recruited by IRIS Research, of which 400 are being surveyed. This sample is of sufficient size taking into account demographics and locality of residents. IPART recommend a sample size of at least 400 to ensure a 95% confidence interval, so that an estimate of the percentage supporting the proposed special variation will be no more than +/- 5%. The information pack communicates the relevant information to survey participants and was mailed to participants ( a copy of the brochure is attached). Only contacts that have read the information were surveyed. If the resident had not read the information when contacted, they were asked if they could read the information and a call back was arranged. The survey took around eight minutes.

The results of the survey will be available in a presentation to Council on the 12 December as the research will not be completed until the Friday prior to the meeting.

Community satisfaction survey

The community satisfaction survey results are presented to this Council meeting in a separate report and provide a measure of the level of community support for different programs of expenditure by allowing respondents to rank services and/or proposed works in order of priority. By capturing the community’s priorities, Council may be able to identify different levels of services and/or proposed works which could be funded with a lower rate increase.

Other community consultation actions

If Council resolve at this meeting notify IPART of an intention to lodge a s508A application, additional consultation and engagement will be undertaken prior to the 6 February 2013 Council meeting.

A full outline of the proposed consultation methods would be considered by Council in January 2013.

Reporting the outcomes of community consultation and engagement

If Council resolves at this meeting to continue to move forward to lodge an application, Council must provide details of the consultation strategy undertaken, including the range of methods used to inform the community on the special variation proposal and to obtain community feedback on this proposal.

The information would clearly identify:

· key stakeholders in the consultation process

· the information that was presented to the community regarding the special variation proposal

· methods of consultation used by the council and why these were selected.

The council must also provide a summary of the outcomes from community consultations, for example:

· the number of attendees at workshops or meetings

· the percentage of respondents indicating support for the proposal

· the overall sentiment of representation

· the results of surveys undertaken.

For s508A special variation applications, Council must be able to demonstrate that there is community support for the special variation. The level of community support for the proposal should be detailed (including by relevant stakeholder group) and any action proposed by the council to address issues of common concern should be explained.

ISSUES

Legal

If Council is to progress a s508A special variation application to rate income there are specific requirements that must be followed. These are established by the Division of Local Government and IPART.

Asset

The core intent of the special variation model is to address the growing maintenance and renewal backlog in the areas of collector roads, recreation assets, public domains and public buildings.

Consultation

The community survey and the deliberative survey form the initial stage of Council’s consultation. If Council resolve to progress to notifying IPART of an intention to lodge an application, further consultation will be undertaken and results reported to Council on 6 February 2013.

Financial

The deliberative survey has been carried out by IRIS Research and funded from the adopted budget related to review of the community strategic plan. Council resolved by way of adoption of the Long Term Financial Plan and Operational Plan 2013 to consider this application and the survey was funded through this process.

Funding source

Amount

Adopted budget

16,500

$

Resources (including staff)

The process of Council considering a special variation application has been factored into the adopted operational plan. Staff in communications, finance and community and relationships are involved in this process.

Operational Plan

This proposal is outlined as an action in the adopted operational plan 2013.

Conclusion

Council must formally resolve to notify IPART of an intention to lodge a 508A special variation application by 14 December 2012. This process allows IPART to plan their staffing requirements to assess all applications, due by 11 March 2013, in a timely manner.

A resolution to notify IPART does not bind Council to formally resolving to make the application in March 2013. Further consultation and drafting of the 2013/14 operational plan and budget will need to be finalised and presented to Council prior to such a resolution.

If Council does not resolve to progress this application at this time, a review and refocussing of the adopted Delivery Plan, (Bega Valley 2016) and Long Term Financial Plan and associated asset management plans will need to be undertaken in early 2013 for consideration by Council, consultation and public exhibition prior to adoption in June 2013.

ATTACHMENTS

Nil

Recommendation

That Council determine whether to notify the Independent Pricing and Regulatory Tribunal in relation to a s508A special variation application for the period of three years from 2013/14.

Council 12 December 2012 Item 12.3

12.3. ICAC report Operation Jarek

The formal report from the ICAC about Operation Jarek has been received

Group Manager Community & Relationships

Background

In April 2011 ICAC requested Council (as one of many NSW councils and public agencies) to investigate and report back matters of alleged corruption pursuant to section 14(2) of the ICAC Act, and to determine whether to commence disciplinary action against employees involved.

The ICAC was conducting an investigation into allegations of corrupt conduct involving public officials who had improperly received gifts and benefits from suppliers to the public authorities with which they were employed. This matter, Operation Jarek, moved to Public Inquiry on 4 October 2011.

Council undertook independent external investigations of the claims and compiled reports for ICAC.

During the course of the original investigation, ICAC compiled information suggesting employees of Bega Valley Shire Council had “improperly accepted gifts and benefits provided by Momar Australia Pty Ltd”. The Information held by the ICAC suggested “gifts and benefits were provided to your employees as a result of an ongoing business relationship between Bega Valley Shire Council and Momar Australia Pty Ltd. In the majority of cases, the Commission believes gifts and benefits were sent directly to the home addresses of your employees.”

The ICAC sent the information pertaining to individual employees, pursuant to Section 12(a) of the Independent Commission Against Corruption Act 1988, for the information of Council to determine whether to commence disciplinary action against the employees involved.

The ICAC also requested that Council respond to a Corruption Prevention Questionnaire. The response to the questionnaire was provided to the ICAC. Following receipt of the report, an ICAC Senior Investigator requested copies of Council’s transcripts of interview. These were provided to the ICAC in hard copy.

The matter was reported to Council on 27 September 2011 outlining the claims in relation to Momar and NCH Australia (Chemsearch), with the report including Council’s actions and response.

On 7 October 2011 Senior Lawyer for the ICAC wrote to the General Manager outlining the opening of the Inquiry where 110 public authorities were referred to in the opening address and noting that Bega Valley Shire Council, whilst one of the 110, was not one of the 15 whose names were mentioned in open hearing and Council was not required to produce oral evidence.

Subsequent advice was also received in 2011 noting that the Commissioner had made a suppression order to allow each of the 95 councils not required to provide oral evidence to investigate those allegations and to take whatever steps necessary in connection with them.

Outline of the Council investigation process

The investigation consisted of two components:

Part 1 A review of Council’s procurement, stores and procedures and response to the Corruption Prevention Questionnaire which included information about: Council’s policies and procedures particularly focussing on gifts and benefits; the code of conduct; Council’s store and procurement processes; and information about audit procedures.

Part 2 An investigation into the matter of allegations of receipt of gifts by the named staff coordinated by the Public Officer and the Group Manager Infrastructure over the period April to May 2011:

1. Seven initially named staff were advised of the matter and interview times established with an appropriately qualified and experienced external investigator.

2. Interviews with named staff were conducted and a final report prepared in May 2011 and appropriate disciplinary action instigated.

3. An additional staff member was identified through the initial interviews and interviewed by the Public Officer and Group Manager.

4. The Council investigation was carried out and follow up action was completed by 31 May 2011.

Determinations from Council’s investigation

The investigation found that employees had breached the Code of Conduct in relation to accepting gifts and benefits. The independent investigator felt that those interviewed were open and disclosed matters not known to the ICAC or Council. They cooperated willingly and appeared remorseful in relation to their actions.

1. Seven staff members were found to have received gift cards and/or minor gifts. The independent investigator was of the view that they should be involved in a review and instruction relating to the Code of Conduct, specifically concerning gifts and benefits. Official first stage disciplinary warning letters were provided to these staff. This will remain on their personal files for two years. COMPLETED

2. One staff member was also counselled in relation to gifts and benefits procedures. COMPLETED

3. All staff were again advised about the gifts and benefits sections of the code of conduct in the staff training sessions held in November 2011. COMPLETED

4. A key agenda item of the 2011 Staff Development Day - all staff session focussed on Council learnings from these matters. Code of conduct training was also held across the organisation. COMPLETED

Operation Jarek – ICAC Investigation Report and Recommendations

In early November 2012, Council formally received the ICAC’s report on the full matter presented to the Presiding Officers on 29 October 2012. The full report ‘Investigation into allegations that staff from a number of local councils and other public authorities accepted secret benefits from suppliers and that staff from two councils facilitated payment of false invoices from suppliers’ has been provided to Council for appropriate action and follow up.

The ICAC Commissioner noted in his letter to all NSW councils that “most councils and public authorities have a code of conduct and a gift register. Many have a policy banning the receipt of gifts and provide training to their staff on this policy. Despite this, the Commission found that a large number of public officials took gifts without declaring them and that agencies did not consider corruption risks in the broader relationship between buyer and supplier, and the opportunity for corruption in their procurement and inventory system.”

A key aspect of the findings of the investigation relates to the interface between “the impartial and ordered world of the bureaucratic administration inside the organisation and the profit-seeking world of the free market on the outside.” The report focuses on the external environment where relational selling (the marketing process that involves having sales staff form well established associations with consumers in order to promote repeat purchases), gifts and the norm of reciprocity (the social expectation that people will respond to each other kindly by returning benefits for benefits). There are considerable lessons in relation to councils managing their engagement with suppliers.

The Commission has made 15 corruption prevention recommendations to all councils in NSW, as they believe it is evident that the conduct uncovered in the Jarek investigation was systemic and all councils should take action to mitigate these risks.

These recommendations are made to all councils and public authorities, they were formally directed to 14 councils which were the focus of the public inquiry. Bega Valley Shire Council was not one of these councils.

These recommendations will be considered, in conjunction with the procurement report prepared by the ICAC ( Corruption risks in NSW Government procurement- The management challenge) by staff for appropriate recommendations on actions for adoption, review and reporting to the Internal Audit Committee and subsequently Council.

The recommendations have also been embedded in the SCG Procurement Roadmap that Council is partner to.

The ICAC recommendations are:

Recommendation 1

That councils communicate to suppliers a clear set of supplier behaviour expectations and the associated consequences for non-compliance.

Recommendation 2

That councils develop a proactive and comprehensive supplier engagement framework.

Recommendation 3

That councils review their codes and policies on gifts and benefits to ensure they effectively communicate expected behaviour in a way that the intended audience can easily grasp.

Recommendation 4

That councils ensure that their policy provides that all staff who hold financial delegations are prohibited from receiving gifts of any kind.

Recommendation 5

That councils ensure that staff training on gifts has a focus on the disciplinary consequences of accepting gifts.

Recommendation 6

That councils assess which of their staff members operate in an environment where relational selling is commonplace, and equip these staff members to recognise and respond to these sales tactics, including the offer of gifts.

Recommendation 7

That councils, if they have not already done so, analyse their procurement processes to identify points of corruption risk ad take steps to improve the design of their procurement processes.

Recommendation 8

That councils, if they have not already done so, consider introducing e-procurement as an efficient method of controlling possible vulnerabilities in their system.

Recommendation 9

That councils, if they have not already done so, review which reports are available to managers of stores and ensure they (councils) can generate a report showing the orders placed by any individual across all cost centres.

Recommendation 10

That councils, if they have not already done so, analyse inventory management systems with a view to improving controls and reducing waste.

Recommendation 11

That councils examine options of control of their pull-based inventory and implement an option that is suitable for their operations.

Recommendation 12

That councils, if they have not already done so, organise their stores so that all items are labelled clearly, stock is securely stored and movement of all goods in and out of the store is recorded on an integrated inventory management system.

Recommendation 13

That councils ensure stocktakes are conducted independently of stores officers and by staff knowledgeable about the principles of stocktaking.

Recommendation 14

That council management assesses the residual risk in its store and, if appropriate for the organisation, conducts random spot checks or cycle counts of select aspects of inventory management.

Recommendation 15

That councils, if they have not already done so, consider the risks highlighted by this report namely:

· Relational selling and gift giving,

· Procurement processes,

· Inventory management, and

· Where they consider the council is at risk, add these topics to their internal audit programs.

ISSUES

Legal

Bega Valley Shire Council was identified as one of 110 councils and public authorities where issues relating to this ICAC investigation were evident. The matter was referred to Council from the ICAC for investigation, with the resulting report provided to Council.

Bega Valley Shire Council was not one of the 14 councils in respect of whom evidence was called at the public inquiry and was not identified in the formal findings of the ICAC investigation.

The recommendations from the inquiry are however clearly important for Council to include in a review of its procurement, stores management and governance processes.

Policy

Council’s policy and procedures in code of conduct, gifts and benefits and procurement are being reviewed following receipt of this report and will be presented to Council for adoption.

Conclusion

The 2011 Council investigation findings and the final Operation Jarek report recommendations will be key inputs in the review of Council’s procurement, stores and code of conduct reviews in the period to June 2013.

ATTACHMENTS

Nil

Recommendation

1. That Council note the Operation Jarek – ICAC investigation report.

2. That Council receive a further presentation and report on updated policy in relation to gifts and benefits and procurement and stores.

3. That the outcomes from the Council investigation and the recommendations of the Operation Jarek investigation be included in the review of procedures and the Council’s code of conduct in 2013.

Criteria	Weighting
Price	50%
Demonstrated Ability to Perform	30%
Quality Assurance	10%
Contractors OHS System	10%

Funding source	September	October	November
General Fund	$35,726,596	$35,867,032	$33,633,178
Water Fund	$8,749,118	$8,749,118	$8,749,118
Sewer Fund	$5,844,348	$5,844,348	$5,844,348

Council	12 December 2012
*Item 8.1 - Attachment 1*	*Instrument of Delegation under Section 21 of the Plumbing & Drainage Act 2011*

Council	12 December 2012
*Item 8.2 - Attachment 1*	*Map - Location of Proposed Aboriginal Places*

Council	12 December 2012
*Item 8.2 - Attachment 2*	*Letter - Eden Local Aboriginal Land Council*

Council	12 December 2012
*Item 9.2 - Attachment 2*	*International Women's Day EOI 2013 Bega Valley Meals on Wheels Plus*

Council	12 December 2012
*Item 10.1 - Attachment 1*	*Merimbula CBD Bypass Map*

Council	12 December 2012
*Item 10.2 - Attachment 1*	*Letter from Department of Lands dated 4 August 2008*

Council	12 December 2012
*Item 10.2 - Attachment 2*	*Letter from Department of Lands dated 16 September 2008*

Council	12 December 2012
*Item 11.4 - Attachment 1*	*Pambula Sporting Complex Master Plan*

Council	12 December 2012
*Item 12.4 - Attachment 1*	*November Certificate of Investment*