Agenda of Ordinary Council - 21 February 2018

MINUTES

Ordinary Council Meeting

13/12/2017

PRESENT

Members:

Councillor Peta Pinson (Mayor)

Councillor Lisa Intemann (Deputy Mayor)

Councillor Rob Turner

Councillor Michael Cusato

Councillor Sharon Griffiths

Councillor Peter Alley

Councillor Justin Levido

Councillor Geoff Hawkins

Other Attendees:

General Manager (Craig Swift-McNair)

Director of Corporate Performance (Rebecca Olsen)

Acting Director of Development and Environment (Dan Croft)

Acting Director of Infrastructure (Andrew Doig)

Director of Strategy and Growth (Jeffery Sharp)

Group Manager Governance and Procurement (Blair Hancock)

Governance Support Officer (Bronwyn Lyon)

Communications Manager (Andy Roberts)

The meeting opened at 5:30pm.

01 ACKNOWLEDGEMENT OF COUNTRY

The Mayor opened the Meeting with an Acknowledgement of Country and welcomed all in attendance in the Chamber.

02 LOCAL GOVERNMENT PRAYER

Pastor Mark Minturn, President of the Minister’s Association delivered the Local Government Prayer.

03 APOLOGIES

RESOLVED: Turner/Cusato

That the apology received from Councillor Dixon be accepted.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

04 CONFIRMATION OF MINUTES

RESOLVED: Levido/Griffiths

That the Minutes of the Ordinary Council Meeting held on 15 November 2017 be confirmed.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

05 DISCLOSURES OF INTEREST

Councillor Levido declared a Non-Pecuniary, Significant Interest in Item 12.09 - South Lindfield Urban Release Area - Advice of Changes and Re-exhibition, the reason being that Councillor Levido is a partner in the Port Macquarie law firm, Donovan Oates Hannaford Lawyers and acts for the owner of a property within the area being the subject of the report.

Councillor Alley declared a Non-Pecuniary, Less Than Significant Interest in Item 09.08 - Request to Attend Climate Leadership Conference - March 2018 - Councillor Peter Alley, the reason being that Councillor Alley is the subject of the report.

06.01 Mayoral Discretionary Fund Allocations

RESOLVED: Pinson

That the Mayoral Discretionary Fund allocations for the period 2 November to 29 November 2017 inclusive be noted.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

07 CONFIDENTIAL CORRESPONDENCE TO ORDINARY COUNCIL MEETING

There are no confidential attachments to reports for the Ordinary Council Meeting.

08 PUBLIC FORUM

The Mayor advised of applications to address Council in the Public Forum from:

1. Mr Paul Vernon-Roberts regarding the Lake Cathie Foreshore Master Plan.

2. Ms Kath Gumbleton regarding a safer crossing on Lake Road for disabled and older people.

3. Mrs Diane Gilbert regarding the Wauchope Pool.

RESOLVED: Turner/Griffiths

That the above requested to speak in the Public Forum be acceded to.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

08.01 Lake Cathie Foreshore Master Plan

Mr Paul Vernon-Roberts was unable to attend the meeting and nominated Ms Sue East to address Council on his behalf in relation to the Lake Cathie Foreshore Master Plan.

Ms Sue East addressed Council.

08.02 Safer Crossing on Lake Road for Disabled and Older People

Ms Kath Gumbleton addressed Council in relation to a safer crossing on Lake Road for disabled and older people and answered questions from Councillors.

08.01 Wauchope Pool

Mrs Diane Gilbert, representing the Wauchope Heated Indoor Pool Association, addressed Council in relation to the Wauchope Pool.

Requests to Speak on an Agenda Item

The Mayor advised of requests to speak on an agenda item, as follows:

Item 10.02 – Mr Michael Parsons in support of the recommendation.

Item 10.02 – Mr Lawrie Mckinna in support of the recommendation.

Item 10.04 – Mr Paul Dilley in support of the recommendation.

Item 10.04 – Mr Teale Bryan in support of the recommendation.

Item 12.04 – Mr Bob Knuckey in opposition of the proposed development.

Item 12.04 – Ms Michelle Love in support of the proposed development.

Item 12.04 – Mr Chris Stone in opposition of the proposed development.

Item 12.12 – Mr Anthony Hilkemeijer in support of the proposed development.

RESOLVED: Griffiths/Turner

That the requests to speak on an agenda item be acceded to.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

Suspension of Standing Orders

RESOLVED: Griffiths/Alley

That Standing Orders be suspended to allow Items 10.02, 10.04, 12.04 and 12.12 to be brought forward and considered next.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

10.02 Thrumster Sports Fields Development

Mr Lawrie Mckinna, representing Newcastle Jets Football Cub, address Council in support of the recommendation.

Mr Michael Parsons, representing Football Mid North Coast, addressed Council in support of the recommendation and answered questions from Councillors.

RESOLVED: Intemann/Pinson

That Council:

1. Provide in-principle support for the development of a high performance football centre as part of the Thrumster Sports Fields facility.

2. Develop detailed designs for the Thrumster Sports Field facility which meets the needs of Football Mid North Coast as well as cricket and community football use.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

10.04 Oxley Oval - Sporting Infrastructure Upgrades

Mr Paul Dilley, representing the Hastings Cricket Association, addressed Council in support of the recommendation.

Mr Teale Bryan, representing the Hastings Viking Rugby Club, addressed Council in support of the recommendation.

RESOLVED: Turner/Hawkins

That Council:

1. Note the information contained in the Oxley Oval – Sporting Infrastructure Upgrades report.

2. Allocate a budget of $300,000 toward provision of new sports amenities and upgrade of the incoming power supply.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

12.04 DA2015 - 913.1 Multi-Dwelling Housing (6 Dwellings) And Strata Title Subdivision - Lot 27 DP 1213714, No 20 Bluewren Close, Port Macquarie

Mr Bob Knuckey addressed Council in opposition of the proposed development and answered questions from Councillors.

Ms Michelle Love, Love Project Management, representing the applicant, addressed Council in support of the proposed development and answered questions from Councillors.

Mr Chris Stone addressed Council in opposition of the proposed development.

MOTION

MOTION: Griffiths/Pinson

That DA2015 – 913.1 for a multi-dwelling housing (6 dwellings) at Lot 241, DP 1227796, No. 20 Bluewren Close, Port Macquarie, be determined by Council.

MOTION WITHDRAWN

MOTION

MOTION: Cusato/Turner

That Council refer to the Development Assessment Panel DA2015 – 913.1 for multi-dwelling housing (6 dwellings) at Lot 241, DP 1227796, No. 20 Bluewren Close, Port Macquarie for determination.

equal: 4/4

For: Alley, Cusato, Hawkins and Turner

Against: Griffiths, Intemann, Levido and Pinson

CASTING VOTE: AGAINST

MOTION LOST

MOTION

MOTION: Cusato/Griffiths

That DA2015 – 913.1 for multi-dwelling housing (6 dwellings) at Lot 241, DP 1227796, No. 20 Bluewren Close, Port Macquarie, be determined by granting consent subject to the recommended conditions.

FORESHADOWED MOTION

MOVED: Alley

That DA2015 – 913.1 for multi-dwelling housing (6 dwellings) at Lot 241, DP 1227796, No. 20 Bluewren Close, Port Macquarie, be determined by refusing consent for the following reasons:

1. Overdevelopment of the site.

2. Poor amenity in front setback area.

3. Non-compliance with side and rear setbacks.

4. Failure to retain significant koala food trees on the site.

5. Out of character with the area in terms of intensity of development on the site.

6. Insufficient technical details to address stormwater and landscaping.

THE MOTION WAS PUT

RESOLVED: Cusato/Griffiths

That DA2015 – 913.1 for multi-dwelling housing (6 dwellings) at Lot 241, DP 1227796, No. 20 Bluewren Close, Port Macquarie, be determined by granting consent subject to the recommended conditions.

carried: 5/3

For: Cusato, Griffiths, Hawkins, Intemann and Turner

Against: Alley, Levido and Pinson

12.12 DA2017 - 437.1 - Demolition Of Existing Dwelling And Construction Of New Dwelling And Swimming Pool Including Clause 4.6 Objection To Clause 4.3 (Height Of Buildings) Of Port Macquarie-Hastings Local Environmental Plan 2011 - Lot 123 DP 31187, No 32 Bourne Street, Port Macquarie

Mr Anthony Hilkemeijer, applicant, addressed Council in support of the proposed development.

RESOLVED: Intemann/Levido

That DA2017 – 437.1 for demolition of existing dwelling and construction of new dwelling and swimming pool including Clause 4.6 objection to Clause 4.3 (height of buildings) at Lot 123 DP 31187, No. 32 Bourne Street, Port Macquarie be determined by granting consent subject to the recommended conditions.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

09.01 2017 A.R. Bluett Award

RESOLVED: Cusato/Griffiths

That Council note with pride that Port Macquarie-Hastings Council has been awarded the 2017 A.R. Bluett Award for Local Government as the most progressive Council in New South Wales.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

09.02 Status of Reports From Council Resolutions

RESOLVED: Intemann/Cusato

That Council note the information in the Status of Reports from Council Resolutions report.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

09.03 Disclosure of Interest Return

RESOLVED: Griffiths/Turner

That Council note the Disclosure of Interest returns for:

1. New member of the Town Centre Master Plan Sub-Committee.

2. Group Manager Environmental Services.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

09.04 Council Policy - Policy Review - Post Exhibition - Naming and Renaming of Roads and Reserves

RESOLVED: Levido/Alley

That Council adopt the:

1. Naming and Renaming of Reserves Policy.

2. Naming and Renaming of Roads Policy.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

09.05 Monthly Financial Review for November 2017

RESOLVED: Hawkins/Griffiths

That Council adopt the adjustments in the “Financial and Economic Implications” section of the Monthly Financial Review Report for November 2017.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

09.06 Investments - November 2017

RESOLVED: Levido/Cusato

That Council note the Investment Report for the month of November 2017.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

09.07 Payment of Water Fund and Sewer Fund Dividend for the Year 2016-2017

RESOLVED: Hawkins/Intemann

That Council:

1. Note the achievement of substantial compliance with each of the six best practice guidelines (NSW Best Practice Management Guidelines for Water Supply and Sewerage, August 2007) of:

(a) Strategic Business Planning

(b) Pricing

(d) Performance Reporting

(e) Integrated Water Cycle Management

2. Authorise the application to the NSW Government for approval to pay a dividend of $896,454 to the General Fund from the surplus in Water Supply operations for the 2016-2017 financial year.

3. Authorise the payment of $99,606 for tax equivalents to the general fund from the Water Supply operations for the 2016-2017 financial year.

4. Authorise the application to the NSW Government for approval to pay a dividend of $836,433 to the General Fund from the surplus in the Sewerage Fund for the 2016-2017 financial year.

5. Authorise the payment of $92,937 for tax equivalents to the general fund from the Sewerage Fund for the 2016-2017 financial year.

6. Determine that if successful in its applications that the dividend will be quarantined for stormwater related works.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

09.08 Request to Attend Climate Leadership Conference - March 2018 - Councillor Peter Alley

Councillor Alley declared a Non-Pecuniary, Less Than Significant Interest in this matter and remained in the room during the Council's consideration.

RESOLVED: Hawkins/Intemann

That Council:

1. Approve the attendance of Councillor Peter Alley at the Climate Leadership Conference to be held in Sydney from 15 to 16 March 2018.

2. Request that within one month of Councillor Alley’s attendance at the Climate Leadership Conference, a report be tabled at an Ordinary Meeting of Council regarding reasons for attending the conference, the outcomes of the conference, the agenda of the conference and any areas of interest specific to Port Macquarie-Hastings Council discussed at the conference.

carried: 6/2

For: Alley, Hawkins, Intemann, Levido, Pinson and Turner

Against: Cusato and Griffiths

09.09 Property Investment Policy - Consideration of Submissions

RESOLVED: Hawkins/Cusato

That Council:

1. Note the submissions to the Draft Property Investment Policy as discussed in this report.

2. Amend the Draft Investment Policy by replacing the 4^th paragraph under Clause 2 of the policy with the following:

“To implement this Policy, Council will establish and manage a Property Investment Portfolio, comprising strategic property assets that meet the above criteria. Through the relevant Director, the Group Manager, Assets & Property Investment will regularly review and report to Council on the performance of the Property Investment Portfolio and make recommendations regarding the portfolio, on a minimum six monthly basis."

3. Adopt the Property Investment Policy as amended in point 2 above.

4. Note that no decision to buy, develop or dispose of a property will be made without a report being tabled at a formal meeting of Council for consideration.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

10.01 Closure of Part of an Unnamed Road at Settlement Point

RESOLVED: Intemann/Alley

That Council:

1. Make application to the Department of Industry – Lands for the closure of an area of 17 metres x 20 metres of the unformed and unnamed Council road that bisects the Settlement Point Reserve.

2. Request the Department of Industry – Lands vest the closed road in Council as “operational” land.

3. Pursuant to Section 377 of the Local Government Act 1993, delegate authority to the General Manager to sign the:

a) Road closing application to be lodged with the Department of Industry – Lands;

b) Survey plan of road closure/first title creation;

c) Land Registry Services Request Form for issue of certificate of title for the closed road.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

Item - 10.02 Thrumster Sports Fields Development - has been moved to another part of the document.

10.03 Wauchope Sports Fields - Project Update

RESOLVED: Intemann/Turner

That Council note the information contained within the Wauchope Sports Fields – Project Update Report.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

Item - 10.04 Oxley Oval - Sporting Infrastructure Upgrades - has been moved to another part of the document.

10.05 Cultural Plan 2016-2019: Progress Report

RESOLVED: Turner/Hawkins

That Council note the:

1. Information in the Port Macquarie-Hastings Council Cultural Plan 2016-2019 progress report.

2. Progress to date of the review of the 2016-2019 Cultural Plan by the Cultural Steering Group.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

10.06 Bicentenary Activities - Options for Involvement & Resources

Councillor Cusato left the meeting, the time being 8:28pm.

Councillor Cusato returned to the meeting, the time being 8:29pm.

RESOLVED: Turner/Hawkins

That Council:

1. Provide in principle support to projects that mark the 2018 John Oxley Bicentenary.

2. Set up a Bicentenary Working Group of the Cultural Steering Group (BWG) to assist with the strategy, the organisation and the implementation of the Bicentenary program.

3. Enable the ad hoc participation of suitably qualified persons (relevant experience and expertise) onto the BWG.

4. Request the BWG provides regular reporting to Council through updates via the Cultural Steering Group.

5. Workshop alternative wording for the draft Bicentenary logo with the BWG.

6. Establish a new line item in both the 2017/18 and 2018/19 Operational Plans – Bicentenary Activities.

7. Re-allocate GL 41433 ‘WW1 and ANZAC Commemoration’ with a current budget of $43,856 to ‘Bicentenary Activities’.

8. Transfer $80,000 from the Cultural reserve to Bicentenary Activities.

9. Approve a dedicated Bicentenary Grants stream from the current Community Grant budget.

10. Note that the John Oxley Memorial previously located at Town Beach is currently being rejuvenated for the John Oxley Bicentenary, and once complete, will be relocated in early 2018 to a new site in the vicinity that has significantly better pedestrian access.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

10.07 Question from Previous Meeting - Community Projects

RESOLVED: Griffiths/Intemann

That Council:

1. Note the information contained in the Community Projects report.

2. Request the General Manager provide a briefing in March 2018 to Councillors on the potential to develop a sporting/community reference group.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

10.08 Recommended Items from the Mayor's Sporting Fund Sub-Committee - November 2017 Meeting

RESOLVED: Pinson/Cusato

That Council, pursuant to the provisions of Section 356 of the Local Government Act 1993, grant financial assistance from the Mayor’s Sporting Fund as follows:

1. Dylan D Domizio be granted the amount of $350.00 to assist with the expenses he would have incurred travelling to and competing at the Australian All Schools Athletics Championships being held in Adelaide from 1 – 10 December 2017.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

11.01 Notice of Motion - Markets in Port Macquarie-Hastings Local Government Area

RESOLVED: Turner/Griffiths

That Council request the General Manager develop and table a policy for the approval of markets in the LGA at the April 2018 Council Meeting. The policy should include:

1. A mechanism (with appropriate criteria) for controlling the locations and scheduling of markets in the Port Macquarie CBD and other potentially sensitive locations where significant concentrations of retailers exist and compete.

2. A distinction between “occasional” markets associated with one-off, or annual, events compared to markets operating regularly more than four times per year.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

12.01 Question From Previous Meeting - Wall Reserve Car Park, North Haven

RESOLVED: Pinson/Griffiths

That Council:

1. Note the information contained within the report regarding the potential to seal the access road and car park of Wall Reserve.

2. Give consideration to Option 3 to funding these works in the development of the 2018/19 Operational Plan and Budget.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

12.02 Question From Previous Meeting - Old Pacific Highway, Dennis Bridge, Wilson River Bridge

RESOLVED: Cusato/Turner

That Council note the information relating to the handover of assets including the Dennis and Wilson River Bridges following the opening of the Pacific Highway upgrade between the Oxley Highway and Kundabung.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

12.03 Question From Previous Meeting - Feral Deer

RESOLVED: Cusato/Intemann

That Council:

1. Note the information contained in the report.

2. Request the General Manager write to the following people outlining the excessive population growth of wild deer in the Port Macquarie-Hastings local government area and requesting that appropriate funding be allocated to the relevant State government departments and Local Land Services North Coast for investigations into the wild deer population and the ongoing culling programs required to gain control over the deer population:

a) The Hon. Niall Blair, MLC, Minister for Primary Industries;

b) The Hon. Paul Toole, MP, Minister for Lands and Forestry;

c) The Hon. Gabrielle Upton, MP, Minister for the Environment;

d) The Hon. Melinda Pavey, MP, Member for Oxley, Minister for Roads, Maritime and Freight;

e) The Hon. Leslie Williams, MP, Member for Port Macquarie, Parliamentary Secretary for Regional & Rural Health.

f) The Hon. Mick Veitch, Shadow Minister for Primary Industries, and Shadow Minister for Lands.

3. Request the General Manager provide a briefing to Councillors in the first quarter of calendar year 2018, outlining the actions required within the current Hastings Wild Deer Management Strategy for reducing wild deer numbers.

4. Request the General Manager write to The Hon. Niall Blair, MLC, Minister for Primary Industries, requesting that Local Land Services North Coast undertake a review of the Hastings Wild Deer Management Strategy during 2018.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

Item - 12.04 DA2015 - 913.1 Multi-Dwelling Housing (6 Dwellings) And Strata Title Subdivision - Lot 27 DP 1213714, No 20 Bluewren Close, Port Macquarie - has been moved to another part of the document.

12.05 Draft Coastal Walk Master Plan - Results of Community Engagement

RESOLVED: Pinson/Cusato

That Council:

1. Note the information contained within the Draft Coastal Walk Master Plan – Results of Community Engagement Report.

2. Adopt the Coastal Walk Master Plan as presented for implementation.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

12.06 Biodiversity Strategy

RESOLVED: Alley/Turner

That Council:

1. Place on public exhibition the draft Biodiversity Strategy commencing from 20 December 2017, for a minimum of 70 days.

2. Note that a further report is planned to be tabled at the April 2018 meeting of Council, detailing the submissions received from the public during the exhibition period.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

12.07 Draft Koala Recovery Strategy and Coastal Koala Plan of Management

RESOLVED: Intemann/Pinson

That Council:

1. Forward the attached draft Coastal Koala Plan of Management to the NSW Department of Planning and Environment for review in accordance with the relevant guidelines.

2. Following endorsement of the draft Coastal Koala Plan of Management by the Department of Planning and Environment, place on public exhibition both the draft Coastal Koala Plan of Management and the draft Koala Recovery Strategy for a minimum period of 42 days.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

12.08 Thrumster Local Orders Policy

RESOLVED: Levido/Turner

That Council:

1. Adopt the Local Orders Policy to Restrict the Keeping of Dogs at Thrumster, as publicly exhibited, in accordance with section 161 of the Local Government Act 1993.

2. Request the General Manager make representations to the Minister for Planning and Environment regarding the need for alternate provisions to the Local Orders Policy to restrict and manage dog ownership in areas of Core Koala Habitat.

3. Review the Thrumster (Area 13) Koala Plan of Management in the context of the proposed Koala Strategy and Comprehensive Koala Plan of Management for Port Macquarie-Hastings, prior to the next review of the Local Orders Policy.

carried: 5/3

For: Alley, Hawkins, Intemann, Levido and Turner

Against: Cusato, Griffiths and Pinson

12.09 South Lindfield Urban Release Area - Advice of Changes and Re-exhibition

Councillor Levido declared a Non-Pecuniary, Significant Interest in this matter and left the room and was out of sight during the Council's consideration, the time being 9:16pm.

RESOLVED: Cusato/Griffiths

That Council note:

1. The re-exhibition of the South Lindfield Urban Release Area from 13 December 2017, for a minimum of 42 days.

2. That a further report is planned to be tabled at the February 2018 meeting of Council, detailing the submissions received from the public during the exhibition period.

carried: 7/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Pinson and Turner

Against: Nil

Councillor Levido returned to the meeting, the time being 09:18pm.

12.10 Wayfinding Signage Strategy

Councillor Alley left the meeting, the time being 09:18pm.

MOTION: Turner/Cusato

That Council note the recent development of a Port Macquarie-Hastings Wayfinding Signage Strategy for implementation.

carried: 7/0

For: Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

12.11 Notice of Motion - Stormwater Strategy

Councillor Alley returned to the meeting, the time being 09:22pm.

RESOLVED: Intemann/Levido

That in view of the potential for water and sewer dividend funds being directed to stormwater projects, Council request the General Manager to develop a strategy for stormwater works for future years, working with the Water, Stormwater, Sewer & Waste Councillor Portfolio, with a report to be tabled at the June 2018 Council meeting detailing the proposed strategy.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

Item - 12.12 DA2017 - 437.1 - Demolition Of Existing Dwelling And Construction Of New Dwelling And Swimming Pool Including Clause 4.6 Objection To Clause 4.3 (Height Of Buildings) Of Port Macquarie-Hastings Local Environmental Plan 2011 - Lot 123 DP 31187, No 32 - has been moved to another part of the document.

13 QUESTIONS FOR NEXT MEETING

13.01 Car Parking - Residential Developments

Question from Councillor Levido:

Could the General Manager arrange a briefing for Councillors early in 2018 dealing with the following issues:

1. Council’s off street car parking requirements for medium and high density residential developments in residential zones within the Port Macquarie-Hastings Local Government Area;

2. Whether the current “Zone R1 – General Residential Zone” pursuant to Port Macquarie-Hastings Local Environmental Plan 2011 is practically suitable to established low density residential areas/precincts within the Port Macquarie-Hastings Local Government Area or whether the “Zone R2 – Low Density Residential Zone” is more suitable and the process involved in changing the zoning accordingly; and

3. Whether any other Council/planning authority in NSW has investigated enforceable requirements as to car parking spaces (whether in a garage or in the open) for residential dwellings and residential complexes being available only for car parking purposes and not for general storage or the standing of generally sedentary items, such as boats/trailers/caravans?

Comments by Councillor (if provided):

Nil.

13.02 Public Art - Port Macquarie Town Square

Question from Councillor Turner:

Could the General Manager please advise Council whether there is any public art planned for the Port Macquarie Town Square?

Comments by Councillor (if provided):

Nil.

CONFIDENTIAL COMMITTEE OF THE WHOLE

RESOLVED: Levido/Griffiths

1. That pursuant to section 10A subsections 2 & 3 and 10B of the Local Government Act 1993 (as amended), the press and public be excluded from the proceedings of the Council in Confidential Committee of the Whole (Closed Session) on the basis that items to be considered are of a confidential nature.

2. That Council move into Confidential Committee of the Whole (Closed Session) to receive and consider the following items:

Item 14.01 T-17-19 Provision of Graphic Design Services

This item is considered confidential under Section 10A(2)(d(i)) of the Local Government Act 1993, as it contains commercial information of a confidential nature that would, if disclosed, prejudice the commercial position of the person who supplied it.

Item 14.02 T-17-51 Beechwood Road Upgrade - Stage 5 and 6

Item 14.03 T-17-54 Construction of Hastings River Drive and Newport Island Road Roundabout

Item 14.04 T-17-59 Supply and Delivery of Tractors

3. That the resolutions made by the Council in Confidential Committee of the Whole (Closed Session) be made public as soon as practicable after the conclusion of the Closed Session and such resolutions be recorded in the Minutes of the Council Meeting.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

Adjourn meeting

The Ordinary Council Meeting adjourned at 9:26pm.

Resume meeting

The Ordinary Council Meeting resumed at 9:28pm.

ADOPTION OF RECOMMENDATIONS FROM THE CONFIDENTIAL COMMITTEE OF THE WHOLE

RESOLVED: Levido/Griffiths

That the undermentioned recommendations from Confidential Committee of the Whole (Closed Session) be adopted:

Item 14.01 T-17-19 Provision of Graphic Design Services

RECOMMENDATION

That Council:

1. Accept the tenders from the following suppliers to be appointed to a panel for the provision of Graphic Design Services for a term of three (3) years commencing 1 January 2018 with two (2) options to extend for a further one (1) year, (such option to be for the benefit of the Council and may be exercised only by the Council in its sole discretion):

a) Beyond the Hedge;

b) BJ & EJ Creighton t/as AreCreative;

c) Evolution Graphic Designs t/as Two Minds Creative;

d) Handsome Creative Pty Ltd t/as Handsome Creative;

e) Juzvolter Graphic Design Studio t/as Division of Barrier Signs Pty Ltd &;

f) Simple Integrated Marketing Pty Ltd t/as Simple Integrated Marketing.

2. Accept the Schedule of Rates for the provision of Graphic Design Services from:

a) Beyond the Hedge;

b) BJ & EJ Creighton t/as AreCreative;

c) Evolution Graphic Designs t/as Two Minds Creative;

d) Handsome Creative Pty Ltd t/as Handsome Creative;

e) Juzvolter Graphic Design Studio t/as Division of Barrier Signs Pty Ltd;

f) Simple Integrated marketing Pty Ltd t/as Simple Integrated Marketing.

3. Affix the seal of Council to the necessary documents.

4. Maintain the confidentiality of the documents and considerations in respect of tender T-17-19.

Item 14.02 T-17-51 Beechwood Road Upgrade - Stage 5 and 6

RECOMMENDATION

That Council:

1. Accept the tender from SMEC Australia Pty Ltd for $323,176 (exclusive of GST) for the design and preconstruction services for the Beechwood Road Upgrade – Stage 5 and 6.

2. Accept the Schedule of Rates from SMEC Australia Pty Ltd for the design and preconstruction services for the Beechwood Road Upgrade – Stage 5 and 6.

3. Affix the seal of Council to the necessary documents.

4. Maintain the confidentiality of the documents and considerations in respect of Tender T-17-51.

Item 14.03 T-17-54 Construction of Hastings River Drive and Newport Island Road Roundabout

RECOMMENDATION

That Council:

1. Accept the tender from Ditchfield Contracting Pty Ltd for $2,072,104.00 (exclusive of GST) for the construction of Hastings River Drive and Newport Island Road Roundabout.

2. Accept the Schedule of Rates from Ditchfield Contracting Pty Ltd for the construction of Hastings River Drive and Newport Island Road Roundabout.

3. Affix the seal of Council to the necessary documents.

4. Maintain the confidentiality of the documents and considerations in respect of Tender T-17-54.

Item 14.04 T-17-59 Supply and Delivery of Tractors

RECOMMENDATION

That Council:

1. Accept the quotation (Part A), through Local Government Procurement, from Chesterfield Australia Pty Ltd, for the purchase of an approximate 100hp (75kw) 4WD tractor with a 4 in 1 Frontend Bucket and accessories $93,664 (excl GST).

2. Accept the quotation (Part B), through Local Government Procurement, from Chesterfield Australia Pty Ltd, for the purchase of three (3) approximate 65hp (48kw) 4WD tractors (Part B) and accessories $170,391 (excl GST).

3. Affix the seal of Council to the necessary documents.

4. Maintain the confidentiality of the documents and considerations in respect of Tender T-17-59.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

The meeting closed at 9:29pm.

………………………………………..

Peta Pinson

Mayor

AGENDA Ordinary Council 21/02/2018

Item: 05

Subject: DISCLOSURES OF INTEREST

RECOMMENDATION

That Disclosures of Interest be presented

DISCLOSURE OF INTEREST DECLARATION

Name of Meeting: ………………………………………………………………………..

Meeting Date: ………………………………………………………………………..

Item Number: ………………………………………………………………………..

Subject: ………………………………………………………………………..

…………………………………………………….……………...…..

I, ..................................................................................... declare the following interest:

Pecuniary:

Take no part in the consideration and voting and be out of sight of the meeting.

Non-Pecuniary - Significant Interest:

Take no part in the consideration and voting and be out of sight of the meeting.

Non-Pecuniary - Less than Significant Interest:

May participate in consideration and voting.

For the reason that: ....................................................................................................

.......................................................................................................................................

Name: …………………………………………………….

Signed: ......................................................................... Date: ..................................

(Further explanation is provided on the next page)

Further Explanation

(Local Government Act and Code of Conduct)

A conflict of interest exists where a reasonable and informed person would perceive that a Council official could be influenced by a private interest when carrying out their public duty. Interests can be of two types: pecuniary or non-pecuniary.

All interests, whether pecuniary or non-pecuniary are required to be fully disclosed and in writing.

Pecuniary Interest

A pecuniary interest is an interest that a Council official has in a matter because of a reasonable likelihood or expectation of appreciable financial gain or loss to the Council official. (section 442)

A Council official will also be taken to have a pecuniary interest in a matter if that Council official’s spouse or de facto partner or a relative of the Council official or a partner or employer of the Council official, or a company or other body of which the Council official, or a nominee, partner or employer of the Council official is a member, has a pecuniary interest in the matter. (section 443)

The Council official must not take part in the consideration or voting on the matter and leave and be out of sight of the meeting. The Council official must not be present at, or in sight of, the meeting of the Council at any time during which the matter is being considered or discussed, or at any time during which the council is voting on any question in relation to the matter. (section 451)

Non-Pecuniary

A non-pecuniary interest is an interest that is private or personal that the Council official has that does not amount to a pecuniary interest as defined in the Act.

Non-pecuniary interests commonly arise out of family, or personal relationships, or involvement in sporting, social or other cultural groups and associations and may include an interest of a financial nature.

The political views of a Councillor do not constitute a private interest.

The management of a non-pecuniary interest will depend on whether or not it is significant.

Non Pecuniary – Significant Interest

As a general rule, a non-pecuniary conflict of interest will be significant where a matter does not raise a pecuniary interest, but it involves:

(a) A relationship between a Council official and another person that is particularly close, for example, parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child of the Council official or of the Council official’s spouse, current or former spouse or partner, de facto or other person living in the same household.

(b) Other relationships that are particularly close, such as friendships and business relationships. Closeness is defined by the nature of the friendship or business relationship, the frequency of contact and the duration of the friendship or relationship.

(c) An affiliation between a Council official an organisation, sporting body, club, corporation or association that is particularly strong.

If a Council official declares a non-pecuniary significant interest it must be managed in one of two ways:

1. Remove the source of the conflict, by relinquishing or divesting the interest that creates the conflict, or reallocating the conflicting duties to another Council official.

2. Have no involvement in the matter, by taking no part in the consideration or voting on the matter and leave and be out of sight of the meeting, as if the provisions in section 451(2) apply.

Non Pecuniary – Less than Significant Interest

If a Council official has declared a non-pecuniary less than significant interest and it does not require further action, they must provide an explanation of why they consider that the conflict does not require further action in the circumstances.

SPECIAL DISCLOSURE OF PECUNIARY INTEREST DECLARATION

[insert full name of councillor]

In the matter of

[insert name of environmental planning instrument]

Which is to be considered at a meeting of the

[insert name of meeting]

Held on

[insert date of meeting]

PECUNIARY INTEREST

Address of land in which councillor or an associated person, company or body has a proprietary interest (the identified land)ⁱ

Relationship of identified land to councillor

[Tick or cross one box.]

 Councillor has interest in the land (e.g. is owner or has other interest arising out of a mortgage, lease trust, option or contract, or otherwise).

 Associated person of councillor has interest in the land.

 Associated company or body of councillor has interest in the land.

MATTER GIVING RISE TO PECUNIARY INTEREST

Nature of land that is subject to a change

in zone/planning control by proposed

LEP (the subject landⁱⁱⁱ

[Tick or cross one box]

 The identified land.

 Land that adjoins or is adjacent to or is in proximity to the identified land.

Current zone/planning control

[Insert name of current planning instrument and identify relevant zone/planning control applying to the subject land]

Proposed change of zone/planning control

[Insert name of proposed LEP and identify proposed change of zone/planning control applying to the subject land]

Effect of proposed change of zone/planning control on councillor

[Tick or cross one box]

 Appreciable financial gain.

 Appreciable financial loss.

Councillor’s Name: …………………………………………

Councillor’s Signature: ………………………………. Date: ………………..

Important Information

This information is being collected for the purpose of making a special disclosure of pecuniary interests under sections 451 (4) and (5) of the Local Government Act 1993. You must not make a special disclosure that you know or ought reasonably to know is false or misleading in a material particular. Complaints made about contraventions of these requirements may be referred by the Director-General to the Local Government Pecuniary Interest and Disciplinary Tribunal.

This form must be completed by you before the commencement of the council or council committee meeting in respect of which the special disclosure is being made. The completed form must be tabled at the meeting. Everyone is entitled to inspect it. The special disclosure must be recorded in the minutes of the meeting.

i. Section 443 (1) of the Local Government Act 1993 provides that you may have a pecuniary interest in a matter because of the pecuniary interest of your spouse or your de facto partner or your relative^iv or because your business partner or employer has a pecuniary interest. You may also have a pecuniary interest in a matter because you, your nominee, your business partner or your employer is a member of a company or other body that has a pecuniary interest in the matter.

ii. Section 442 of the Local Government Act 1993 provides that a pecuniary interest is an interest that a person has in a matter because of a reasonable likelihood or expectation of appreciable financial gain or loss to the person. A person does not have a pecuniary interest in a matter if the interest is so remote or insignificant that it could not reasonably be regarded as likely to influence any decision the person might make in relation to the matter or if the interest is of a kind specified in section 448 of that Act (for example, an interest as an elector or as a ratepayer or person liable to pay a charge).

iii. A pecuniary interest may arise by way of a change of permissible use of land adjoining, adjacent to or in proximity to land in which a councillor or a person, company or body referred to in section 443 (1) (b) or (c) of the Local Government Act 1993 has a proprietary interest..

iv. Relative is defined by the Local Government Act 1993 as meaning your, your spouse’s or your de facto partner’s parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child and the spouse or de facto partner of any of those persons.

AGENDA Ordinary Council

21/02/2018

Item: 09.01

Subject: Joint Organisation of Mid North Coast Councils

Presented by: General Manager, Craig Swift-McNair

Alignment with Delivery Program

1.2.1 Promote Council participation and build linkages in local, state and federal initiatives, forums and opportunities to support Council’s continued planning for the growth of the region.

RECOMMENDATION

In accordance with Part 7 of Chapter 12 of the Local Government Act 1993 (Act), Port Macquarie-Hastings Council (Council) resolves:

1. That the Council inform the Minister for Local Government (Minister) of the Council’s endorsement of the Minister recommending to the Governor the establishment of a Joint Organisation in accordance with this resolution.

2. To approve the inclusion of the Port Macquarie-Hastings Council’s area in the Joint Organisation’s area.

3. That the Joint Organisation be established to cover the Council’s area and any one or more of the following Council areas:

- Kempsey Shire Council;

- Nambucca Shire Council;

- Bellingen Shire Council;

- Coffs Harbour City Council;

- Clarence Valley Council.

4. That, on the expiry of a period of 28 days from the making of this resolution, the General Manager provide the Minister:

a) With a copy of this resolution including the date on which Council made this resolution; and

b) Inform the Minister that this resolution has not been rescinded for the purpose of the Minister issuing a certificate under section 400P of the Act.

Executive Summary

The Local Government Amendment (Regional Joint Organisation) Act 2017 (Act) commenced on 15 December 2017. A copy of the legislation is attached to this report for information. As per information provided by the Office of Local Government (OLG), this legislation allows for Councils to voluntarily join new Joint Organisations (JOs) to strengthen regional coordination and improve the delivery of important infrastructure and services for communities through strategic planning, collaboration, shared leadership and advocacy.

As detailed in a letter from the OLG to the General Manager dated 20 December 2017 (copy attached), Council must now give consideration to joining a JO and as such, a Council resolution to reflect this is a critical part of the process, hence this report to Council.

The OLG has stated that it is important that Council resolutions align for groups of Councils that wish to form a JO and that Councils provide the Minister for Local Government (Minister) with a copy of this resolution by 28 February 2018. This allows time to undertake the required processes in order to have JOs in operation by July 2018. To this end, the OLG has provided a draft resolution for Councils to consider, which is reflected in the recommendation included in this report.

The purpose of this report is to detail information relating to the establishment and operation of a JO for the Mid North Coast Councils.

Discussion

In August 2011, a forum entitled Destination 2036 was held at Dubbo and was attended by the then NSW Minister for Local Government, Mayors and General Managers of most Councils in NSW and other sector stakeholders. Following this forum, the NSW Government established a Ministerial Advisory Group (LGNSW, Unions and Minister’s representatives) and some-time later appointed the Independent Local Government Review Panel (ILGRP).

The ILGRP was tasked with investigating and identifying options for governance models, structural arrangements and boundary changes for local government in NSW. The ILGRP released its final report “Revitalising Local Government” in October 2013 and the NSW Government released its response to that report in September 2014 through a report titled “Fit for the Future”. Each of these reports covered a range of issues pertinent to local government and its future, such as the system of rating; financial assistance grants; meeting infrastructure needs; leadership and governance arrangements amongst others.

One of the recommendations of the ILGRP Report was a proposal to establish new Joint Organisations (JOs) for each of the regions in NSW under proposed new provisions of the Local Government Act 1993. The NSW Government supported this in its response, initially by way of establishing a pilot framework and inviting applications for 5 x pilot JOs across the State through a competitive process. Five pilots were chosen and these pilots were supported in their evolution so as to potentially develop a stronger framework for future JOs, once the system was formalised

Following on from the above, since 2015 as part of the NSW Governments ongoing local government reform process, there have been numerous reports and papers specifically focussing on JOs as follows:

- Joint Organisations: Mid Pilot Report – July 2015;

- Joint Organisations: Emerging Directions Paper – September 2015;

- Joint Organisations: Office of Local Government End Pilot Evaluation Report by KJA Engaging Solutions – March 2016

- Joint Organisations: Towards a New Model for Regional Collaboration Overview – June 2016

- Joint Organisations: Towards a New Model for Regional Collaboration Full Paper – June 2016

- Joint Organisations: Getting the Boundaries Right – September 2016

During the time of consideration of the above reports, Council made two submissions to the NSW Government relating to JOs and concerns around their establishment and operation. Copies of these submissions are attached to this report for information.

As can be seen from the information provided above, JOs have been the subject of much discussion over the past several years and with the commencement of the relevant legislation in December 2017, JOs are now a reality. As defined by the new legislation, following are the principle and ‘other’ activities of a JO:

400R Principal functions of joint organisations

(1) A joint organisation has the following principal functions:

(a) to establish strategic regional priorities for the joint organisation area and to establish strategies and plans for delivering those strategic regional priorities,

(b) to provide regional leadership for the joint organisation area and to be an advocate for strategic regional priorities,

(c) to identify and take up opportunities for inter-governmental co-operation on matters relating to the joint organisation area.

(2) In establishing strategic regional priorities for the joint organisation area, a joint organisation is to consider any relevant strategic priorities or plans of member councils and the State government.

(3) A strategic regional priority, or a plan or strategy for delivering a strategic regional priority, established by a joint organisation does not limit the operation of or otherwise affect any regional plan or strategy given effect to under the Environmental Planning and Assessment Act 1979 (including any regional plan made under Part 3B of that Act).

400S Other functions of joint organisations

(1) A joint organisation may deliver services and provide assistance to or on behalf of councils (including capacity building), as agreed with the councils, and subject to any restrictions imposed by the regulations. Note: Some functions may also be delegated to a joint organisation by a council, see sections 377 and 379.

(2) A joint organisation has any other function conferred on the joint organisation by or under this Act or any other law.

Rather than revisiting all the previous work around JOs and to put some context to this current discussion now that the Act has commenced, copied below are some questions and answers that have been provided to Councils by the OLG that will provide some valuable background to JOs and what, according to the NSW government, JOs are being established to achieve:

1) What is a Joint Organisation?

A JO is a new entity under the Local Government Act comprising member councils in regional NSW to provide a stronger voice for the communities they represent.

A JO will provide a more structured, permanent way for local councils, State agencies and other interested groups to collaborate. Each region will decide its own priorities, working on short and long term projects such as attracting a new industry to the region or improving the health of a river system. By putting their resources together and focusing on the unique challenges and strengths of their whole region, JO members can drive better outcomes for local residents.

Each JO will comprise at least three member councils and align with one of the State’s strategic growth planning regions. One of the member council’s Mayors will be elected chairperson and an Executive Officer may be appointed.

2) How will Joint Organisations benefit councils and communities in regional NSW?

JOs will transform the way that the NSW Government and local councils collaborate, plan, set priorities and deliver important projects on a regional scale. These new partnerships will benefit local communities across regional NSW by working across traditional council boundaries.

3) How do we know Joint Organisations will work?

The JO model has been developed in close consultation with councils and the NSW Government has listened to regional councils to get the model right. This included a pilot program for five groups of councils to test a range of options, which involved the participation of 43 councils and delivered a range of initiatives and projects to those regions.

An independent evaluation of the pilot program found JOs bring benefits to regional communities in delivering on-the-ground projects and attracting more investment to regional communities.

4) How are Joint Organisations different to Regional Organisations of Councils (ROC’s)?

The JO model provides for greater certainty and continuity as well as recognising the unique differences in the many regions of NSW. While some ROC’s have been effective, they have varied functions, membership, and governance structures which often makes collaboration more difficult.

5) Why has the Government decided to make joining Joint Organisations voluntary?

The majority of regional councils support JOs but some asked for more time and flexibility to determine their own membership of a new regional body and the Government has listened to this feedback.

6) Why should councils choose to form a Joint Organisation?

JOs will provide a forum for councils, agencies and others to come together and focus on their regional priorities – the things that matter for that region. JOs will help drive the delivery of important regional projects – the infrastructure and services that local communities need and deserve.

JOs will also provide councils with a more efficient way to deliver shared services for members and the region. Where member councils agree, they can choose to share a common approach to services such as information technology, water management services and community strategic planning.

The NSW Government will provide $3.3 million to support councils to establish JOs.

7) Can councils determine their own regional boundaries?

While the choice to join and composition of a JO is voluntary, the NSW Government will only support the creation of JOs within existing State planning regions and in regional NSW. Councils have told us that effective collaboration will only be realised when State and local government boundaries are aligned.

To aid this process the NSW Government has consulted the sector on boundary criteria which they can take into account when determining the membership of their JO. JO boundaries should:

- align with, or ‘nest’ within one of the State’s planning regions;

- demonstrate a clear community of interest between member councils and regions;

- not adversely impact on other councils or JOs, for example, leaving too few councils to form a JO;

- be based around a strong regional centre or centres;

- be of an appropriate size to partner with State, Commonwealth and other partners.

Consistent with previous Government decisions, JOs will not be considered for metropolitan Sydney and the Central Coast at this time.

8) What funding is available to Joint Organisations?

The Government will provide up to $3.3 million in seed funding to JOs to support their establishment. The Government will identify opportunities for additional investment through JOs in regional economies.

Funding for each JO will be based on the number of councils that choose to form a Joint Organisations, with maximum funding provided to regions where all councils in a region choose to be members of the new regional body.

All Joint Organisations, whether they were pilot regions or not, will be provided with seed funding. Further details on funding arrangements will be provided to councils.

9) Will this funding be enough to help councils establish a JO?

The NSW Government is providing significant funding and support to help those councils that choose to establish a JO. The pilot program demonstrated that groups of councils can achieve substantial benefits for their communities and significant cost savings by working together through a JO.

10) What are the next steps for interested councils?

Following the passage of legislation through Parliament, councils will be invited to nominate to form a JO in their region. Councils are encouraged to open discussions with their neighbours as soon as possible. The Office of Local Government is available to facilitate these discussions and provide support to councils through the nomination process. Specific requirements to form a JO will be provided to councils shortly.

Each Joint Organisation will be created by a proclamation and the NSW Government will then ask the Commonwealth to endorse each Joint Organisation as a non-national system employer to ensure that any staff of a JO, with the exception of the Executive Officer, are employed under the State Local Government Award.

11) What support will be provided to councils and Joint Organisations once established?

The OLG will work with JOs to support their establishment and ensure they have the necessary systems and governance in place for the JOs to deliver results for regional communities.

The OLG and the Department of Premier and Cabinet (DPC) will foster collaboration between JOs and State agencies to identify and act on opportunities to benefit regional communities.

12) Can councils choose not to participate?

Councils can choose not to become a member of a JO. The Government strongly encourages all councils in regional NSW to consider the benefits and opportunities offered by JOs. Councils that are members of JOs will be able to take advantage of investment opportunities that are delivered through the JO.

13) Is there a role for Parliamentary Secretaries in Joint Organisations?

Parliamentary Secretaries will play a key role in championing a new, shared regional collaboration which will bring together Regional Leadership Groups of State agencies and JOs.

14) How has the Government’s approach changed?

The JO model that will be enabled through the legislation is consistent with the consultation and engagement with the sector. The Government has been listening to councils and has decided to implement JOs in a more flexible way.

For clarity, the above questions and answers have been provided to Councils by the OLG and are not necessarily Council’s views on the issues raised, but are provided here as background information only.

It should be stated that whilst the Local Government Amendment (Regional Joint Organisation) Act 2017 commenced on 15 December 2017, the regulations to support this legislation are yet to be finalised, or at the least, Councils have not yet seen the draft regulations. This lack of understanding of what is contained in the regulations does present some risk to all Councils, in as much as the OLG is asking Councils to give consideration to becoming a member of a voluntary JO (as detailed in this report), without knowing the full impact of the JO regulations on the Council. At the time of writing this report, enquiries were being made of the OLG in relation to the final timing of the regulation and their likely impact on Councils.

Council has worked collaboratively for many years with surrounding Councils and has been a member of the Mid North Coast Regional Organisation of Councils (MIDROC) since its establishment. Until recently, MIDROC included the following member Councils:

- Port Macquarie-Hastings Council;

- Kempsey Shire Council;

- Nambucca Shire Council;

- Bellingen Shire Council;

- Coffs Harbour City Council;

- Greater Taree City Council;

- Gloucester Shire Council.

The 2016 merger of Great Lakes Council, Greater Taree City Council and Gloucester Shire Council to become MidCoast Council has seen Greater Taree City Council and Gloucester Shire Council leave MIDROC. Further to this change in membership, in 2017 Clarence Valley Council officially joined MIDROC, making the existing membership of MIDROC as follows:

- Port Macquarie-Hastings Council;

- Kempsey Shire Council;

- Nambucca Shire Council;

- Bellingen Shire Council;

- Coffs Harbour City Council;

- Clarence Valley Council.

MIDROC has worked collaboratively for many years on a range of issues, mostly from an advocacy perspective, with a number of operational sub-groups established throughout that time. As demonstrated by our long term membership of MIDROC, Council is not averse to working regionally with other Councils.

MIDROC collectively represents close to 300,000 residents across the member Councils and is therefore a strong advocacy body for the north coast of NSW. The current MIDROC objectives are to:

- Advocate to and inform all spheres of government of the economic, social, environmental and infrastructure needs of the region.

- Strengthen the role of local government in regional affairs with regard to policy and strategic directions of both State and Federal government.

- Support the implementation of strategies that will build community capacity across the region and increase the effectiveness and efficiency of member councils through sharing ideas and resources.

With a view to the future, at the MIDROC Board meeting held on 6 July 2017, the University of Technology Sydney – Centre for Local Government (UTS) were engaged to draft a report for MIDROC detailing the options for forming a new entity.

The UTS presented their report and findings to the MIDROC Board meeting held on Monday 28 August 2017 and the Board unanimously resolved the following:

1) That MIDROC move to form an Incorporated Association based on MIDROC’s existing constitution and articles of association.

2) That MIDROC note that the formation of an Incorporated Association is carried out with a view to evolving to a Corporation Limited by Guarantee in the future if appropriate.

3) That the regional organisation be known as the Joint Organisation of Mid North Coast Councils (JOMNCC).

4) That the Joint Organisation immediately apply to the NSW Government for funding as provided to other joint organisations in an annual sum of $600,000, as originally proposed to be allocated to the two Joint Organisations for this region.

5) That the purpose and core functions of the Joint Organisation of Mid North Coast Council be;

a) Strategic planning and priority setting;

b) Intergovernmental collaboration;

c) Regional leadership and advocacy;

d) Shared service delivery and capacity building.

The above MIDROC Board resolution was made in light of the fact that at the time of the August MIDROC Board meeting, the NSW government had not been able to commit to when the JO legislation might commence or when JOs themselves might be established. This Board resolution was an attempt to move MIDROC forward in light of the changes taking place across local government.

The UTS were then further engaged by the MIDROC Board to develop a strategic plan that could be used as the basis for a mid-north coast JO. Through various workshops with the UTS and the MIDROC Board, the strategic plan was developed, a copy of which is attached to this report.

The MIDROC (JOMNCC) Strategic Plan has been prepared with reference to each of the member councils Community Strategic Plans, therefore ensuring that the “regional” strategic plan has regard to the various communities that make up the wider region.

As detailed earlier in this report, the JO legislation has now commenced and the government are aiming to have JOs operational by July 2018. In light of this, at the 28 November 2017 MIDROC Board meeting, the Board resolved the following:

1) Review enabling legislation and provide a report to the Board.

2) That following a review of the legislation each member endorses the Joint Organisation by a resolution of council.

3) That JOMNCC submit a request to establish a Joint Organisation by 28 February 2018.

As per the above MIDROC Board resolution, this report to Council addresses the issue of Port Macquarie-Hastings Council giving consideration to being included in a JO.

Through the two submissions Council has previously made around JOs (as attached to this report), Council noted our concerns around the operation of JOs. Two of the key concerns were the fact that there would be one vote per Council regardless of the size of the Council and the fact that at the time the submissions were made (2015 & 2016), being a member of a JO was to be mandatory.

On the issue of mandatory membership of a JO, it should be noted that as detailed earlier in this report, the Act has now determined that membership of a JO is voluntary as opposed to the original position of the NSW government that membership would be mandatory. As detailed in the response to Question 12 above, Councils can choose not to become a member of a JO, however the government is strongly encouraging all Councils in regional NSW to consider the benefits and opportunities offered by JOs. According to the government, Councils that are members of JOs will be able to take advantage of investment opportunities that are delivered through the JO.

As the legislation is written, once a Council becomes a member of a JO, there is an opportunity for a Council to be removed from a JO, however this would require a proclamation by the Governor as detailed in the extract of the Act below:

400ZC Amendment and dissolution of joint organisations

(1) The Governor may, by proclamation, amend or revoke a proclamation in force under this Part for the purpose of amending the constitution of, or of dissolving, a joint organisation.

(2) A proclamation for the purpose of amending the constitution of a joint organisation:

(a) may change the name of the joint organisation, or

(b) may vary the joint organisation area by adding or removing council areas and may specify the name of each council whose area is included in or removed from the joint organisation area.

On the issue of one vote per member Council of a JO, this is now legislated, so regardless of the size of a Council, one vote only is allowed per Council at JO Board meetings. This could mean that into the future a situation arises where a group of smaller Councils (who make up the majority of votes in the proposed JOMNCC), vote together on an issue that is considered not to be in the best interests of the larger member Councils i.e. Port Macquarie-Hastings Council and Coffs Harbour City Council.

Whilst the above does present a potential risk, the reality is that this situation exists today in MIDROC where each voting member only has one vote and to date this has not yet presented us with any challenges that we were not able to work through. Having said the above, there is one key difference between the structure of MIDROC as we know it today and the future JO, with that difference being that MIDROC is not a legislated body, whereas the JO will be. This then leads to the logical conclusion that a resolution of the JO Board will have considerably more power than a resolution of the current MIDROC Board.

Taking the above further, this then leads to the question of whether a resolution of the JO Board takes precedence over a formal resolution from a member Council made under the Act, or vice versa. For instance, there could be a situation arise where a member Council has previously resolved to not support a particular regional initiative of some sort, however the JO Board resolves to support this. Whilst the likelihood of something like this taking place is possibly highly unlikely, it would appear that there is some risk that this could take place.

At the time of writing this report, further advice on the above is being sought from the OLG. What is known at this stage is that when a JO is formed, a formal charter will need to be determined by the JO Board and this charter will need to detail how decisions of a JO Board will be made. The choices around how decisions will be made will likely be either by a simple majority of votes or 100% support will be required. It is clearly too early to understand what the JOMNCC charter will look like, however the issues raised above will need to form part of that conversation based on any future advice received from the OLG.

From a funding perspective, whilst the NSW government has announced funding of $3.3 million to support Councils to establish a JO, at this stage there will be no ongoing funding provided to Councils for the operation of a JO by the NSW government. Each member Council will be required to contribute financially to the operation of the JO and the basis for this will be agreed by each JO Board, noting that all Councils have previously contributed financially to the operation of MIDROC.

The level of funding required to operate the JO will not be fully known until such time as the JO has developed their Regional Strategic Plan and there is agreement on the appointment of an Executive Officer being either on a part time or full time basis and any other contract of employment conditions.

In relation to future funding of the JO, at the 28 November 2017 MIDROC Board meeting, the following was resolved:

1) That Board notes the Ministerial press release associated with Joint Organisations (JOs) and the $3.3 million allocated to support JOs.

2) That further correspondence to the Minister’s office be prepared in the event that pilot JOs are provided with additional financial support.

3) That the Board supports initial funding the Joint Organisation via a base rate of $250,000, that is $41,666 per council for 2018/2019 and a per capita rate to be determined following Strategic Plan priorities and organisational requirements.

For clarity, the above resolution means that for the 2018-2019 financial year, each Council will contribute $41,666 as a minimum with the further per capita rate being determined at some point into the future. Further information around the likely financial contribution can be found below under the Financial and Economic Implications section of this report.

The NSW government has long held the view that Councils need to collaborate. As detailed earlier in this report, Council has worked collaboratively with other MIDROC Councils since the establishment of MIDROC, as well as having worked with a range of Councils outside of MIDROC also.

There is no doubt that the State government is increasingly developing funding programs that target regions rather than just one Council i.e. the NSW government program called Growing Local Economies (GLE) is an example of this. The GLE requires regional economic areas to consider regional priority projects for funding, not necessarily individual Council projects. If Council want to continue to be able to apply for regionally focused funding programs for the benefit of the local community and the regional area, then being a member of a JO will likely be necessary.

As per the recommendation included in this report, as Port Macquarie-Hastings Council is a leading NSW Council, it is important that Council is a member of the JO in order to be able to influence regional priorities. There is a real opportunity for Council to be able to demonstrate regional leadership in being a member of the JO.

Council does of course have the option of not becoming a member of a JO, however as detailed earlier in this report, the government is strongly encouraging all Councils in regional NSW to consider the benefits and opportunities offered by JOs. The government has stated that Councils that are members of JOs will be able to take advantage of investment opportunities that are delivered through the JO and whilst details around what these investment opportunities might look like are not available at this point in time, the government is making it fairly clear that there will be grant funding aimed specifically at JOs.

Apart from the benefits of regional advocacy on a range of issues that will come from being a member of a JO, the Act allows JOs to undertake ‘other’ functions on top of the principle functions detailed above. These other functions could be around resourcing sharing or shared services into the future. Council is not currently involved in any discussions around these functions with other Councils, however with a clear focus on continuous improvement and efficiency, all Councils may find some future benefit in having discussions around such initiatives. If Council chose not to be a member of the JO, then it may be increasingly difficult to be involved in such discussions into the future with surrounding Councils.

In relation to the way forward with JOs, the following information was received by Council from the Acting Chief Executive of the OLG on 11 January 2018:

Recently some councils have sought clarification about the nomination process. I would therefore like to confirm that interested councils need to take the following steps in order to complete the nomination process:

1. Identify your council’s planning region according to the map provided in the information pack

2. Consult with councils within your preferred regional grouping to reach agreement on JO membership, noting that each JO must have a minimum of three member councils

3. Once the proposed membership is agreed, ensure each member council endorses the proposal by a resolution of council

4. By 28 February 2018, submit your nomination to form a JO by email to jointorganisations@olg.nsw.gov.au, marked ‘Nomination for Joint Organisation’. This is to include a copy of the resolution and the date council made that resolution, and

5. Councils should also complete and return a Forming a Joint Organisation – checklist with the nomination.

Unlike a normal council resolution, the legislation provides a fixed 28 day period for councils to rescind such a resolution. As such, councils are also asked to undertake a further step, which may fall after 28 February:

6. After the expiry of a period of 28 days from the making of council’s resolution, the General Manager inform the Minister in writing that council’s resolution has not been rescinded.

With regard to the above points, Council has undertaken the following:

1. Council is part of the North Coast planning region, therefore the proposed JOMNCC nests within that planning region as required by the Act;

2. Consultation with existing MIDROC Councils has been ongoing for some time and as per the previous MIDROC Board resolutions as detailed in this report, there is agreement that the existing members of MIDROC would be the member Councils of the proposed JO;

3. This report deals with the issue of Council giving formal consideration to becoming a member of the proposed JO;

4. Assuming a resolution of Council in line with the recommendation included in this report, the General Manager will action the requirement to inform the OLG by 28 February 2018;

5. The related Forming a Joint Organisation checklist will also be completed as required.

6. The required notification to the Minister will take place as detailed above.

The following MIDROC member Councils have already formally considered the issue of becoming members of a JO, noting that two Councils listed below are meeting the day before this scheduled Council meeting, therefore the result of those Council positions is not yet known at the time of writing this report:

Bellingen Shire Council: On 31 January 2018, voted unanimously in favour of becoming members of a JO.

Nambucca Shire Council: On 18 January 2018, voted 5 to 4 in favour of becoming a member of a JO.

Coffs Harbour City Council: On 8 February 2018, voted 6 to 2 in favour of requesting an extension of time from the OLG for consideration of becoming a member of a JO and to hold a Councillor briefing on this issue.

Clarence Valley Council: Meeting being held Tuesday 20 February 2018.

Kempsey Shire Council: Meeting being held Tuesday 20 February 2018.

Options

Council has the option of resolving in line with the recommendation as included in this report, noting that the recommendation has been provided by the OLG so that all Councils wishing to be members of a JO resolve in the same manner.

Council also has the option of not resolving in line with the recommendation as included in this report, dependent on whether Council wishes to become a member of a JO or not, or requires further information.

Community Engagement & Internal Consultation

There has been no community engagement in relation to this report. There has been internal consultation with the General Manager, Directors and the Group Manager Governance & Procurement as well as engagement with other member Councils of MIDROC through a series of Board meetings as noted throughout this report.

Planning & Policy Implications

It is clear that becoming a member of a JO will result in a Regional Strategic Plan being developed by the JO that each member Council will need to play a part in developing and implementing. This plan will need to take into account the Community Strategic Plans of all member Councils as well as a range of other relevant State plans. As noted earlier in this report, attached to this report is the MIDROC Strategic Plan recently developed by the UTS and the MIDROC Board, with the intention being that this plan will become the Regional Strategic Plan for the newly formed JO.

At this stage there would appear to be no direct policy implications for Council if Council resolves to become a member of a JO.

It is not possible to say at this point in time if there will be any further implications from a planning and policy perspective in relation to the formation of a JO, however the intent would be to report any such impacts to Council prior to them taking place.

Financial & Economic Implications

As previously discussed, the NSW government has announced funding of $3.3 million to support Councils to establish a JO and at this stage it is understood that there will be no ongoing funding provided to Councils for the operation of a JO by the NSW government.

Each member Council will be required to contribute financially to the operation of the JO and the basis for this will be agreed by the JO Board, noting that all Councils have previously contributed financially to the operation of MIDROC.

As detailed earlier in this report, at the 28 November 2017 MIDROC Board meeting, the following was resolved:

1) That Board notes the Ministerial press release associated with Joint Organisations (JOs) and the $3.3 million allocated to support JOs.

2) That further correspondence to the Minister’s office be prepared in the event that pilot JOs are provided with additional financial support.

The above resolution means that for the 2018-2019 financial year, each Council will contribute $41,666 as a minimum with the further per capita rate being determined at some point into the future. Funds have been allocated in Councils draft 2018-2019 Operational Plan to cover this expense.

It should be noted that dependent on the per capita funding model applied to the JO, it is possible that the annual cost to Council for membership of the JO may be upwards of $100,000. As stated above, it is too early to tell what the future funding level to operate the JO will be, but for 2018-2019, on top of the Council contributions, there will be an allocation of funding from the State government for the establishment of the JO, however at the time of writing this report, the exact amount to come to the JOMNCC is unknown.

For information, there have been a couple of different funding models used in the past for how member Councils have funded MIDROC. In general terms, funding has ranged from $10,000 up to $20,000 per annum, with additional costs being borne around specific projects that may have been undertaken.

As detailed by the State government, being a member of a JO may well see regional grant funding being available for the JO to apply for. At this stage there is no specific indication as to what these broader regional funding programs may be, but it is anticipated that they will be based around supporting priority projects as detailed in the JO Regional Strategic Plan. As more information comes to light on such funding, further information will be provided to Councillors.

Further to the above, it is possible that at some point into the future there may be functions of the JO that provide cost savings to member Councils. These cost savings may flow from things like the implementation of shared services; joint procurement or successful joint applications for grant funding etc; however it is too early to know what likely cost savings may ultimately flow from the JO back to member Councils.

Attachments

1 View. Joint Organisation Legislation - Passed by Both Houses

2 View. Letter from the Office of Local Government - Joint Organisation Nomination Reminder

3 View. Joint Organisations - Emerging Directions Submission - October 2015

4 View. Joint Organisations - Background Paper Submission - July 2016

5 View. MIDROC (JOMNCC) Strategic Plan

AGENDA Ordinary Council

21/02/2018

Item: 09.02

Subject: 2017 Local Government NSW Annual Conference

Presented by: General Manager, Craig Swift-McNair

Alignment with Delivery Program

1.2.1 Promote Council participation and build linkages in local, state and federal initiatives, forums and opportunities to support Council’s continued planning for the growth of the region.

RECOMMENDATION

That Council note the information contained in the 2017 Local Government NSW Annual Conference report.

Executive Summary

The 2017 Local Government NSW (LGNSW) Annual Conference was held in Sydney from 4 to 6 December 2017. As per a previous resolution of Council, Mayor Peta Pinson, Councillors Peter Alley and Geoff Hawkins attended the conference, as well as the General Manager.

The purpose of this report is to provide an overview of the annual conference.

Discussion

At the Ordinary Council Meeting held on 20 September 2017, Council resolved the following:

09.05 - 2017 LOCAL GOVERNMENT NSW ANNUAL CONFERENCE

RESOLVED: Levido/Griffiths

That Council:

1. Grant approval for Mayor Peta Pinson, Councillor Geoff Hawkins and Councillor Peter Alley to attend the 2017 Local Government NSW Annual Conference to be held in Sydney from 4 to 6 December 2017.

2. Determine that Mayor Peta Pinson, Councillor Geoff Hawkins and Councillor Peter Alley be Council’s voting delegates for the Elections of Office Bearers and the Board of Local Government NSW at the Conference.

3. Determine that Mayor Peta Pinson, Councillor Geoff Hawkins and Councillor Peter Alley be Council’s voting delegates for voting on motions which determine the policies and priorities for the Local Government NSW and the sector.

CARRIED: 9/0

FOR: Alley, Cusato, Dixon, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

AGAINST: Nil

As per Council’s “Payment of Expenses and Provision of Facilities to Councillors” Policy, a Councillor may nominate or be nominated to attend conferences, seminars, or similar functions. Mayor Pinson and Councillors Geoff Hawkins and Peter Alley indicated their interest in attending the 2017 Local Government NSW Conference.

In line with the above Council resolutions, Mayor Peta Pinson, Councillors Peter Alley, Geoff Hawkins and the General Manager attended the annual LGNSW conference on 4 to 6 December 2017 in Sydney.

The Local Government NSW Annual Conference is the signature event of the year for all NSW Councils and provides a forum in which to debate important issues pertinent to our local communities. It also provides the opportunity to hear from State Government leaders, business representatives, community groups and academics. This year there were approximately 880 delegates in attendance at the conference. A copy of the conference program is attached for your information.

Apart from being a conference with a range of speakers on various issues, the conference is also the policy making conference for LGNSW and as such involves voting on a series of motions. There were two rolls of voters, one for voting in the elections for Office Bearers and the Board of Local Government NSW and a separate roll of voters for voting on motions which determine the policies and priorities for Local Government NSW and the sector. The Mayor and Councillors in attendance at the conference were Council’s voting delegates in both instances.

On Monday 4 December, the General Manager attended a General Managers briefing on ‘Coming Together Post-Amalgamation’ which saw several speakers present case studies on life after amalgamation; whilst the Mayor attended a briefing on ‘Elected Life & Good Governance’.

The formal conference commenced on Tuesday 5 December. The opening address was by the Acting Premier, Deputy Premier of NSW, The Hon. John Barilaro MP, followed by the outgoing President of LGNSW, Councillor Keith Rhoades AFSM.

Following the above addresses, the official State Conference was opened, where voting delegates commenced giving consideration to and voting on approximately 90 motions put forward to the conference by Councils. Voting on these motions ran for the majority of the day. A copy of the voting decisions to come from this part of the conference is attached for information.

During the morning of Tuesday 5 December, the General Manager along with the General Managers from other mid north coast Councils met with the NSW Small Business Commissioner, Robyn Hobbs OAM and representatives from Service NSW to talk about their range of services and the NSW outdoor dining trial as well as other potential future initiatives.

During the afternoon of Tuesday 5 December, the Minister for Local Government, The Hon Gabrielle Upton MP attended the conference and gave a broad ranging speech that included reference to the low cost loan facility available to Councils from NSW Treasury Corp (TCorp). According to the Minister some 18 x regional Councils and 10 x metropolitan Councils have now accessed this facility, however when this facility was originally set up by the NSW government, it was for access only by Councils that were deemed to not be Fit for the Future (FFF). On this basis and as a Council deemed to be ‘Fit’, Port Macquarie-Hastings Council (PMHC) has not accessed this facility. At the time of writing this report, enquiries are being made of TCorp in relation to this facility and the ability for this Council to have access to this low cost loan facility and if access is available to Council, what the process may be for entering into such a facility etc.

On Wednesday 6 December the Mayor attended the Australian Local Government Women’s Association (ALGWA) breakfast, with guest speaker being Rhoda Roberts, Head of First Nation Programming at the Sydney Opera House. Ms Roberts spoke on accessing and creating relationships with your local community.

For the conference sessions on Wednesday 6 December, Ellen Fanning was Master of Ceremonies and the first speech of the day was from The Hon. Peter Primrose MLC, Shadow Minister for Local Government. This was followed by an interesting speech via video link by Dr Jonathan Carr-West, Chief Executive, Local Government Information United Kingdom, largely talking about transforming local government. The premise for the speech was that local government is not exempt from the ‘collapse of trust’ that has afflicted all levels of government and some large institutions in recent years. Dr Carr-West has suggested that Councils need to proactively work towards closing what he referred to as the ‘trust deficit’.

The Secretary of the Department of Planning and Environment, Carolyn McNally, spoke about housing affordability and partnerships with Councils across the State. This was followed by The Minister for Roads, Maritime and Freight, The Hon. Melinda Pavey MP and the Member for Oxley who spoke about the investment in infrastructure across the State.

The above was followed by a presentation by Stuart Reeve, the Managing Director of Micromex Research and Consulting on community perceptions of local government following some work Micromex had done for LGNSW. A copy of this presentation is attached to this report for information.

Then came the presentation of the A. R. Bluett Memorial Award (Bluett Award). As per the report to the December 2017 Council meeting (copy attached), Council was declared the winner of the 2017 Bluett Award.

The Bluett Award is contested each year by Councils in NSW who would like to be recognised as being the most progressive in the State and looks at all aspects of Councils operation. Entry is open to all NSW Councils irrespective of size or resources. There are two categories of the award, being city, metropolitan, major regional rural Councils in one category, with rural Councils in another category. Council was declared the winner in the city, metropolitan, major regional rural category, whilst Bland Shire Council were declared the winners of the rural category.

As stated in the December 2017 Council report, winning the Bluett Award is a remarkable result for Council and is recognition of our commitment to innovation, strategic planning, continuous improvement and engaging with the community to understand and deliver on its aspirations and expectations.

The presentation of the Bluett Awards was followed by an address from the outgoing President of LGNSW, Councillor Keith Rhoades AFSM on the association’s initiatives during 2017. This was followed by the LGNSW Treasurers report.

The afternoon of Wednesday 6 December saw a range of concurrent sessions with Mayor Pinson and Councillor Alley attending a session on Environment and Planning and Councillor Hawkins and the General Manager attending a session on Infrastructure and Economics. This was followed by the closing address of the conference by Walkley Award winning journalist, Annabel Crabb.

On the early evening of Wednesday 6 December, representatives from Kempsey Shire Council and Port Macquarie-Hastings Council met with the Minister for Roads, Maritime and Freight, The Hon. Melinda Pavey MP at her offices following an invitation from the Minister earlier that day. The purpose of this meeting was a general meet and greet with representatives from the Ministers Oxley electorate and some of the Ministers staff.

The conference ended with the formal conference dinner on the evening of Wednesday 6 December.

As mentioned above, during the conference the voting delegates were able to vote in the elections for Office Bearers and the Board of Local Government NSW. On Friday 8 December 2017, the Australian Electoral Commission declared the election of the LGNSW President and Directors as follows:

Directors (Metropolitan/Urban):

Karen McKeown, Mazhar Hadid, Julie Griffiths, Khal Asfour, George Greiss, Lesley Furneaux-Cook and Michael Regan.

Directors (Rural/Regional):

Darriea Turley, Phyllis Miller, Marianne Saliba, Ruth Fagan, Ben Shields, Rod Kendall and Paul Harmon.

The above people join Cr Linda Scott (President), Cr Marjorie Spooner O’Neill (Treasurer), Cr Angelo Tsirekas (Vice President - Metro/Urban), Cr Lindsay Brown (Vice President - Rural/Regional) and Cr Keith Rhoades (Immediate Past President) on the Board of LGNSW.

A trade exhibition also took place for the duration of the conference, with a large range of service providers on show from legal service providers, to heavy equipment suppliers, as well as the Office of Local Government and other government agencies. The conference also allowed time for networking with other Councils across NSW.

Options

This report is for noting only.

Community Engagement & Internal Consultation

There has been no community engagement in relation to this report. Consultation has taken place with the Mayor, Councillor Geoff Hawkins and Councillor Peter Alley in relation to this report.

Planning & Policy Implications

There are no planning and policy implications in relation to this report.

Financial & Economic Implications

The 2017-2018 budget contains an allocation for expenses pertaining to conferences and out-of-pocket expenses for Councillors. The attendance by Councillors at the Conference has been funded from within the existing budget allocation. The total cost of attendance at the conference for the Mayor, Councillors Hawkins and Alley and the General Manager was $11,119.68. This includes conference registrations, accommodation, travel and out-of-pocket expenses as allowed for under the Policy.

Attachments

1 View. Council Report - A.R. Bluett Award - December 2017

2 View. LGNSW 2017 Conference Program

3 View. LGNSW 2017 Record of Decisions

4 View. LGNSW 2017 Presentation by Stuart Reeve - Micromex

AGENDA Ordinary Council

21/02/2018

Item: 09.04

Subject: Status of Reports From Council Resolutions

Presented by: Corporate Performance, Rebecca Olsen

Alignment with Delivery Program

1.3.2 Build trust and improve Council's reputation through transparency, good decision making and living Council’s Values.

RECOMMENDATION

That Council note the information contained in the Status of Reports from Council Resolutions report.

Discussion

Report	Status	Reporting Officer	Original Anticipated Date for Report	Current Anticipated Date for Report
Financial Reserves Review - final report (Item 09.05 - OC 19/04/17)	Currently finalising communications document with UTS.	DCP	Dec 2017	Feb 2018
QFPM – Public Art – Port Macquarie Town Square (Item 13.02 – OC 13/12/17)		DSG		Feb 2018
South Lindfield Urban Release Area – post exhibition (Item 12.09 – OC 13/12/17)		DSG		Feb 2018
Impact of Road Openings and Closures on Private Property (Item 12.03 - OC 18/09/13)	To be included in overall review of roads policies. Information still being sought.	DI	Mar 2015 Jun 2017 Jul 2017 Dec 2017	Mar 2018
Project Management Policy - implementation, operation and effectiveness to date incorporating the views of the Audit, Risk and Improvement Committee (Item 09.03 - OC 15/02/17)	Project Management Framework training is underway in November. Assessments will be completed before and after the training to identify effectiveness. This will be supported by a plan for continuous improvement of project management capability.	DCP	Nov 2017	Mar 2018
Audit, Risk and Improvement Committee – Chairperson Nomination (Item 14.01 – OC 18/10/17)		DCP		Mar 2018
Site Specific LEP Amendments - Status of all proposed site specific LEP amendments following adoption of the revised PMH UGMS and determine priorities in Council’s strategic land use planning program. (Item 12.04 - OC 15/03/17)	Report proposed after exhibition, review and adoption of Urban Growth Management Strategy.	DSG	Jul 2017 Dec 2017	Mar 2018
By-election for Popularly Elected Mayor – Correspondence Responses (Item 09.02 – OC 15/11/17)		GM		Apr 2018
City Managers Conference – post attendance report (Item 09.03 – OC 15/11/17)		GM		Apr 2018
Climate Leadership Conference – post attendance report – Clr Alley (Item 09.08 – OC 13/12/17)		GM		Apr 2018
Biodiversity Strategy – post exhibition (Item 12.06 – OC 13/12/17)		DDE		Apr 2018
Future of Committees following establishment of Cultural Steering Group (Item 15.05 - OC 19/04/17)	Item is to be discussed at a future Cultural Steering Group meeting	DSG	Jun 2017 Jul 2017 Sep 2017 Oct 2017 Feb 2018	Apr 2018
Urban Growth Management Strategy 2017-2018 – post exhibition (Item 12.06 – OC 18/10/17)	Submissions currently still under review	DSG	Feb 2018	May 2018
Water Fluoridation - request for detailed information on studies and programs (Item 10.01 - OC 15/07/15)	Awaiting further information from NSW Health.	DI	Nov 2016 May 2017 Jul 2017 Sept 2017 Nov 2017 Dec 2017 Mar 2018	May 2018
Planning Proposal - Homedale Road Kew - post exhibition (Item 13.07 - OC 14/12/16)	Awaiting further response from proponent prior to public exhibition based on state agency consultation.	DSG	Oct 2017 Dec 2017	May 2018
Draft Structure Plan for the Greater Sancrox Area - consideration/investigations of potential urban capability/serviceability / capacity of lands between Oxley Highway to north, Pacific Highway to west and Houston Mitchell Drive to south and viability of rural residential development in the Greater Sancrox area. (Item 13.07 - OC 18/02/15)	Delayed to align with UGMS report.	DSG	Dec 2016 May 2017 Jun 2017 Dec 2017	May 2018
Alternative Investment Options for higher returns Item 09.10 – OC 15/11/17)		DCP		May 2018
Stormwater Strategy (Item 12.11 – OC 13/12/17)		DI		June 2018
Port Macquarie Town Centre Pedestrian Facility Investigations - post community engagement (Item 13.05 - OC 14/12/16)	Aspects of the engagement are outstanding	DI	Aug 2017 Oct 2017 Feb 2018	Sep 2018
Opportunities for Local Firms to do Business with Council (Item 11.01 – OC 16/08/17)		DCP		Oct 2018
Canal Maintenance (Item 12.04 – OC 18/10/17)		DI		2018/2019 FY
Draft Biodiversity Certification Assessment and Strategy - Port Macquarie Airport and Surrounding Land - viability and implications of the options for securing the required Blackbutt Tallowwood dry grassy open forest and Koala habitat credits, prior to the clearing that creates the demand for those credits. (Item 12.01 - OC 10/08/16)		DDE		TBA
Classification of Land - Lot 5 DP774400 Stingray Creek Bridge Environmental Offset (Item 12.01 - OC 16/11/16)		DCP		TBA
Tuffins Lane Sporting Fields - Terms of Agreement (Item 06.02 - OC 14/12/16)		GM		TBA
Planning Proposal - Lot 2 DP1091253 Beach St, Bonny Hills (Item 12.02 - OC 19/04/17)		DSG		TBA
Planning Proposal - Lot 14 DP240042, Pioneer Street, North Haven. King And Campbell Pty Ltd For Rd & Ml Tate And Tate Developments Pty Ltd - Post Exhibition (Item 13.05 - OC 17/05/17)		DSG		TBA
Tree Management – Proposed Improvements (Item 12.06 – OC 20/09/17)		DDE		TBA
Long Flat Village Sewer Scheme – Acquisition of Land and Easement – Classify as Operational Land (Item 12.03 – OC 18/10/17)		DI		TBA
Planning Proposal PP2016 – 11.1 Mission Terrace Lakewood – post exhibition (Item 12.06 – OC 15/11/17)		DDE		TBA
Planning Proposal Town Square Port Macquarie – post exhibition (Item 12.07 – OC 15/11/17)		DDE		TBA

Cyclic Reports

Report	Reporting Officer	Reporting Cycle
Mayoral Discretionary Fund Allocations	GM	Monthly
Monthly Financial Update	DCP	Monthly
Investments	DCP	Monthly
Recommendations by the Mayor’s Sporting Fund Sub-Committee	SG	Monthly
Development Activity and Assessment System Performance	DDE	Quarterly (May, Aug, Nov, Feb)
Operational Plan – Quarterly Progress Report	DCP	Quarterly (Nov, Feb, April, Aug)
Glasshouse Strategic Plan Update	DCP	Biannual (Feb, Aug)
Delivery Program – Six Monthly Progress Report	DCP	Biannual (Mar, Sep)
Existing Site Specific Planning Proposals – Progress Report	DSG	Biannual (Mar, Sep)
Long Term Energy Strategy – Progress Report	DDE	Biannual (Apr, Oct)
Economic Development Strategy - Progress Report (Item 10.03 - ORD 20/11/2013)	DSG	Biannual (Jun, Dec)
Mayoral and Councillor Fees (Setting of)	GM	Annually (Jun)
MIDROC Strategic Plan 2013-2017 Outcomes (Item 08.03 - ORD 21/08/2013)	GM	Annually (Jul) (re-list to Sep)
Council Policy - Status Report	DCP	Annually (Jul)
Recreation Action Plan – Status Report	DDE	Annually (Jul)
Annual Report of the Activities of the Mayor’s Sporting Fund	DSG	Annually (Sep)
Compliments and Complaints Annual Report	DSG	Annually (Sep)
Council Meeting Dates	GM	Annually (Sep)
Creation of Office - Deputy Mayor	GM	Annually (Sep)
Audit Committee Annual Report	DCP	Annually (Sep)
Annual Report of Disability Discrimination Act Action Plan	DSG	Annually Sep)
Legislative Compliance Register	CP	Annually Sep)
MIDROC Strategic Plan 2013-2017 Outcomes (Item 08.03 - ORD 21/08/2013)	GM	Annually (Sep)
Annual Disclosure of Interest Returns	GM	Annually (Oct)
Council’s Annual Report	DCP	Annually (Nov)
Update Report - Impact of cost shifting for the previous financial year including any additional categories of cost-shifting that have been identified (Item 09.04 - OC 21/10/15)	DCP	Annually (Nov)

Attachments

Nil

AGENDA Ordinary Council

21/02/2018

Item: 09.06

Subject: Financial Sustainability of Council and an Update on the NSW Performance Measurement Framework

Presented by: Corporate Performance, Rebecca Olsen

Alignment with Delivery Program

1.5.1 Manage Council’s financial assets and provide accurate, timely and reliable information.

RECOMMENDATION

That Council:

1. Note the information in the Financial Sustainability of Council and an Update on the NSW Performance Measurement Framework report.

2. Request the General Manager to engage UTS:CLG to update the Financial Sustainability Report with 2016/2017 data.

3. Request the General Manager to develop internally a Communications Plan on the key messages outlined in this report.

Executive Summary

This report provides an update on the proposed NSW Performance Measurement Framework, and findings from a Financial Sustainability review that has been undertaken.

Whilst the Office of Local Government (OLG) have not provided a further update in respect of their proposed Performance Measurement Framework, the Audit Office of NSW in February 2018 have concluded a performance audit on Council service delivery across the NSW sector and have recommended that the OLG progress work on this Framework by mid 2018. In the absence of progress in late 2017, Port Macquarie-Hastings Council engaged the University of Technology Sydney, Centre for Local Government (UTS:CLG) to undertake a review of Council’s Financial sustainability.

Whilst a comprehensive review, the key messages from this review are:-

· Overall financial sustainability of Port Macquarie-Hastings Council is strong and particularly impressive given the operating environment of Council.

· In general, Port Macquarie-Hastings Council has taken important steps in recent years to improve its financial sustainability.

· Focussing on some areas of potential improvement will help Council to continue to strengthen its financial sustainability in the years to come.

· Continued prudent management is the best course of action in ensuring financial sustainability.

UTS:CLG have also conducted a review into Council reserves (cash invested by Council which is allocated for current and future projects). This is the subject of a separate report to Council in this agenda titled Council Financial Reserves Review. In this report, overall, UTS:CLG found Council’s reserve levels to be broadly appropriate and reasonable in light of Council’s circumstances. In particular, in UTS:CLG’s assessment, Council has successfully maintained a prudent buffer to prepare against potential financial risks associated with the predicted high development activity. In sum, and with Council’s expected medium-term level of development activity in mind, it would be broadly necessary for Port Macquarie-Hastings Council to maintain its reserve levels consistent with its current practice.

It should be noted that also in this agenda is a report titled Financial Impact of Cost Shifting from Other Levels of Government. This report highlights that the financial impact of other levels of Government shifting costs onto the ratepayer was almost $11.8 million in the 2016/2017 financial year. This relates only to what costs have actually been captured and measured and it is considered that the actual costs are greater. The Sustainability Review by UTS also reinforces that PMHC must be particularly alert to potential cost-shifting given its impact on financial sustainability.

Discussion

Background and Update on the Status of the proposed NSW Performance Measurement Framework.

At the Ordinary Council Meeting held on 5 October 2016, Council resolved:

09.07 NOTICE OF MOTION - PERFORMANCE MEASUREMENT FRAMEWORK

RESOLVED: Hawkins/Cusato

That Council:

That the General Manager be requested to provide to the February 2017 Council Meeting an update on both the NSW Government's efforts and those of PMHC to build a new local government performance measurement framework. In responding, the General Manager is requested to:

1. Cross reference to the content of the report to Council of 19 February 2014 on the same subject; and

2. In addition to providing recent historical details of progress to date, lay out a broad proposed forward path incorporating high level milestones and indicative timelines.

CARRIED: 9/0

FOR: Besseling, Alley, Cusato, Dixon, Griffiths, Hawkins, Intemann, Levido, and Turner

AGAINST: Nil

A report was provided to the February 2017 Ordinary Meeting of Council addressing the above resolution (a copy of this report is attached for information).

As reported in February 2017, the development of a Performance Management Framework appears to remain on the Office of Local Government’s forward planning schedule, however there has been no further information provided to Council’s.

A Sector-Led Performance Monitoring Pilot Project was developed with a working group being formed to progress the project. The Working Group is comprised of representatives from:

- Selected NSW Councils (including Port Macquarie-Hastings Council);

- LG NSW;

- OLG;

- UTS: CLG.

Details of this project were provided in the report to Council in February 2017. Further progression of this project was subject to further funding being sought and as this has not been forthcoming, the project has stalled.

Audit Office of NSW – Performance Audit into Council reporting on service delivery

On 1 February 2018, a report was released by the NSW Auditor General (attached). This was an inaugural audit in the local government sector by the Audit Office of NSW. The recommendations from the audit are as follows:

The New South Wales Office of Local Government should, by mid-2018:

1. issue additional guidance on good practice in council reporting, with specific information on:

a) reporting on performance against targets

b) reporting on performance against outcomes

c) assessing and reporting on efficiency and cost effectiveness

d) reporting performance over time

e) clearer integration of all reports and plans that are required by the Framework, particularly the role of End of Term Reporting

f) defining reporting terms to encourage consistency.

2. commence work to consolidate the information reported by individual councils to NSW Government agencies as part of their compliance requirements.

3. progress work on the development of a Performance Measurement Framework, and associated performance indicators, that can be used by councils and the NSW Government in sector-wide performance reporting.

4. assist rural councils to develop their reporting capability.

The OLG responded to this report on 24 January 2018 (included as an appendix to the report). As part of their response, the OLG states “OLG is working on the Performance Measurement Framework for councils in NSW, incorporating appropriate performance indicators”.

It is hoped that with the recommendations of the Audit Office of NSW that the OLG will provide more information to Councils in respect of this framework, and that the Sector-Led Performance Monitoring Project may now get some traction and funding.

Financial Sustainability review

With the stall in the Sector-Led Project, and with no further information on the progress of the OLG’s performance reporting framework, UTS:CLG was engaged by Council late in 2017 to conduct a review of its financial sustainability, including an operational efficiency analysis. The review was informed by the expertise of UTS academics who are world leading authorities in this field. In this review, (UTS:CLG) have considered that this review has offered a more detailed and reliable analysis of financial sustainability than that conducted within reports conducted over recent years by various government authorities. This report is attached in its entirety.

As part of the review, PMHC was benchmarked against the following Councils:

DLG 5 Councils	Selected DLG 4 Councils
Coffs Harbour	Albury
Lake Macquarie	Ballina
Maitland	Byron
Newcastle	Dubbo
Port Macquarie-Hastings	Lismore
Shoalhaven	Port Stephens
Tweed Shire	Shellharbour
Wollongong	Tamworth
	Wagga Wagga

For most indicators, five years of data was collected and examined (2011/2012 to 2015/2016) with an additional sixth year (2010/2011) employed in the efficiency analysis. It should be noted that the 2016/2017 financial year is now complete and audited however at the time of this review, much of this data was not yet available across all benchmarked Councils.

As a summary, the review finds that overall financial sustainability of Port Macquarie-Hastings Council is strong and particularly impressive given the operating environment of Council. Notwithstanding this, we note that there are a number of potential areas in which ongoing improvement may benefit financial sustainability going forward…we also note that, amongst the range of measures under examination, Port Macquarie-Hastings Council has tended to perform particularly well in those measures for which we believe are the most appropriate indicators for which Council’s performance should be assessed. For this reason, while we find that Port Macquarie-Hastings Council has underperformed in a range of additional measures, including compared to the peer group, this tends to occur in areas that we feel should be of relatively lower priority – and with generally lesser implication for financial sustainability – for Council.

Achievements noted

The report has made note of the following achievements:-

· Performance in overall operating activity has generally been at a very high and consistent level of relative technical efficiency compared to other NSW water and sewer-serving Councils.

· Significant progress has been made to improve the operating performance ratio compared to recent years and compared to the peer group.

· Substantial efforts have been made in containing increases to non-road operating expenditures per rateable property.

· Significant progress has been made in alleviating the net financial liabilities position in recent years.

· Effective management of cash has been exercised and a high degree of cash liquidity has been demonstrated.

· Staff expenditures per rateable property has been constrained reasonable well in recent years.

Potential Improvements

The report also made note of some potential improvements which would benefit general financial sustainability as follows:-

· Cost-effectiveness of operational activities for road, water and sewer supplies has generally deteriorated since 2011-12.

o For road and water operational expenditures, consultation with Port Macquarie-Hastings Council indicated that expenditures may be subject to an upwards trajectory for the medium term. As a result, strategic planning to identify more cost-effective methods, in concert with evaluation of the quality of service delivery, could be a matter for consideration.

· Budget inaccuracy as at times been excessive, which augments financial decision-making and planning.

o For the most part, significant variations to revenue have been associated with extraneous factors to operational activities, or factors that could not be reasonably accounted for. In part, such revenue variations indirectly have impacted upon expenditure variations as a result. Nonetheless, it will remain appropriate to exercise control over budgets going forward.

· Financial flexibility, while performing generally at around the average level compared to the peer group, will require sustained improvements given the local context, particularly demographic forces

o It would be appropriate, in particular, to strengthen the nexus between the services demanded and those paying for services. This may require steady expansion of the revenue base, including an increase in the proportion of user fees and charges. This could mean that difficult, even unpopular, decisions may become necessary to support financial sustainability and ease the burden on current and future ratepayers.

· Asset management indicators remain an area of underperformance, with only modest improvements being achieved over time, to date, especially compared to substantial improvements generally being made across the peer group over the same period

· It may be appropriate to review current depreciation rates, which appear potentially to be artificially high compared to peers, which may be placing undue downward pressure on other related financial indicators

Recommendations

UTS:CLG have encouraged the consideration of the following measures

· Care should be taken if considering borrowings in view of the fact that its repayment capacity is likely to reduce over time

· Care should also be taken when considering the introduction of new services or service upgrades to ensure that they are fully funded, not just in the present, but also into the future (in cognisance of increased demands and reduced revenue capacity)

· Be particularly alert to potential cost-shifting, especially with respect to pensioner concessions for local services (refer to the separate report in this agenda titled Financial Impact of Cost Shifting from Other Levels of Government which notes the financial impact of cost shifting for the 2016/2017 year as being almost $11.8 million)

· There is a particular need to strengthen the nexus between the services demanded and those paying for the service

· It may be necessary to consider variable pricing for merit goods to better reflect the circumstances of resident-consumers

These considerations will continue to be a focus for management. At the time of preparing this report, a senior leadership meeting had been scheduled to discuss the findings of the review.

Options

Council has the option to not update the review with 2016/2017 data or to update the report following the completion of the 2017/2018 financial year.

Community Engagement & Internal Consultation

The following internal consultation has occurred:-

· General Manager

· Executive Team

· Chief Financial Officer

· Corporate & Financial Planning Manager

· Group Manager Assets & Property Investment

· Group Manager Transport & Stormwater

Planning & Policy Implications

There are no planning and policy implications in relation to this report.

Financial & Economic Implications

There are no financial and economic implications in relation to this report.

Attachments

1 View. Performance Measurement Framework - Report to Council - February 2017

2 View. Audit Office of NSW - Performance Audit

3 View. Financial Sustainability Review

AGENDA Ordinary Council

21/02/2018

Item: 09.07

Subject: Council Financial Reserves Review

Presented by: Corporate Performance, Rebecca Olsen

Alignment with Delivery Program

1.5.1 Manage Council’s financial assets and provide accurate, timely and reliable information.

RECOMMENDATION

That Council:

1. Note the information in the Council Financial Reserves Review Report.

2. Request the General Manager to develop internally a Communications Plan on the key messages outlined in this report.

Executive Summary

The University of Technology Sydney, Centre for Local Government (UTS:CLG) was engaged by Council to conduct an independent analysis of Councils’ financial reserves. This report provides the results of that review.

Whilst comprehensive, the key messages from this review and contextual information are:

· At 30 June 2017, Council held in reserve $242.6 million.

· 72% of the total funds are restricted by State Government legislation for certain purposes (31.4% are tied to contribution plans, and 29.26% for Water and Sewerage activity) and cannot be used for other purposes (such as operations or the maintenance of roads).

· The balance (28%) is set aside for various commitments such as employee leave entitlements, plant replacement, playing fields, airport and transport infrastructure renewal. A full list and explanation of all Council reserves is provided as an attachment to this report.

· Until the funds are required, Council invests these funds which earn Council revenue which does assist the funding of Council services. For the current financial year, Council is forecasted to earn $6.3 million in interest revenue.

· The Port Macquarie-Hastings local government area has experienced an unprecedented level of development activity. Whilst this has increased the level of reserves held through developer contributions, councils experiencing a high level of development activity require relatively high levels of reserves in order to adequately cope with the required levels of infrastructure spending.

· Overall UTS:CLG found Council’s reserve levels to be broadly appropriate and reasonable in light of Council’s circumstances. In particular, it is UTS:CLG’s assessment that Council has successfully maintained a prudent buffer to prepare against potential financial risks associated with the predicted high development activity.

· UTS:CLG found with Council’s expected medium-term level of development activity in mind, it would be broadly necessary for port Macquarie-Hastings Council to maintain its reserve levels consistent with its current practice.

To provide context, Council anticipates spending in the current financial year $110 million in operational expenditure (employee costs, materials and contracts, borrowing costs and in other expenses), and $138 million in capital projects and the repayment of debt which is a combined outlay of $248 million this financial year.

Of Council’s reserves, 31.4% are tied to contribution plans. A new draft Open Space Contributions Plan 2018 has been prepared for open space facilities across the local government area in accordance with the provisions of the Environmental Planning and Assessment Act 1979. The draft plan was identified as an action from the 2016/17 and 2017/18 Operational Plan and the draft Urban Growth Management Strategy. The draft plan will replace the current open space plan and follows on from background work including the Recreation Needs Study 2015 and Recreation Action Plan in 2017. This is the subject of a separate report in this Council agenda titled Open Space Contributions Plan, and the plan identifies clearly what projects are included and the percentage of the Developer Contributions plans that can be used to fund the project. Other contributions plans are also planned to be reviewed in due course.

UTS:CLG have also conducted a review into Council’s financial sustainability. This is the subject of a separate report to Council in this agenda titled Financial Sustainabilty of Council and an Update on the NSW Performance Measurement Framework. This review found in part that the overall sustainability of Port Macquarie-Hastings Council is strong and particularly impressive given the operating environment of Council. UTS:CLG found that in general, Port Macquarie-Hastings Council has taken important steps in recent years to improve its financial sustainability, and have advised continued prudent management is the best course of action in ensuring financial sustainability.

Discussion

At the ordinary Council Meeting held on 19 April 2017, Council resolved:-

09.05 Investments - March 2017

RESOLVED: Levido/Cusato

That Council:

1. Note the Investment Report for the month of March 2017.

2. Request the General Manager undertake an external independent review of Council’s internal and external financial reserves with the following overall objectives:

(a) To review the extent to which Council’s Reserve Balances are appropriate in consideration of the size and breadth of the organisation (including benchmarking to similar sized Councils) and various legislation and Council resolutions that apply.

(b) In consideration of the Externally Restricted reserves provide comment on the following:

i. Whether the S94/S64 Development Contribution Plans are up to-date.

ii. Whether the charges in the Plans are adequate to fund the infrastructure identified.

iii. Whether the Council is maximising its use of development contributions revenue in funding the forward works program.

(c) Determine whether further opportunities exist to use reserve balances as a means of funding (including opportunities for borrowing against these reserves and the impact of such a strategy) for other projects not currently funded in the works program.

3. Request the General Manager provide updates on the progress of the financial reserves review to the Finance, Corporate Services and Information Technology Portfolio and to all Councillors via appropriate briefings, prior to a final report being tabled at a future meeting of Council.

4. Undertake public education that explains why the financial reserves have been established, how they receive income and how they relate to Council’s longer-term plans, including future projects that the reserves are likely to be allocated towards.

carried: 7/0

For: Besseling, Alley, Cusato, Dixon, Griffiths, Intemann and Levido

Against: Nil

This report seeks to address Resolutions 2 to 4 above.

External Independent Review of Council’s internal and external financial reserves

In addressing Resolution 2, the University of Technology Sydney, Centre for Local Government (UTS:CLG) was engaged by Council to conduct an independent analysis of Councils’ financial reserves with the scope of the engagement based on the specific consideration of the points outlined in Resolution 2 above.

UTS:CLG have now provided their final report which is provided as Attachment 1 and provides a comprehensive overview and response to the scope of the engagement.

A brief summary is provided as follows:-

Council Resolution	UTS:CLG Findings
To review the extent to which Council’s Reserve Balances are appropriate in consideration of the size and breadth of the organisation (including benchmarking to similar sized Councils) and various legislation and Council resolutions that apply.	Compared to its peers, and accounting for relevant council characteristics, Port Macquarie-Hastings Council currently holds a reserve balance that is greater than the expected level. Overall, UTS:CLG found Council’s reserve levels to be broadly appropriate and reasonable in light of Council’s circumstances. In Particular, in UTS:CLG’s assessment, Council has successfully maintained a prudent buffer to prepare against potential financial risks associated with the predicted high development activity. In sum, and with Council’s expected medium-term level of development activity in mind, it would be broadly necessary for Port Macquarie-Hastings Council to maintain its reserve levels consistent with its current practice.
In consideration of the Externally Restricted reserves provide comment on the following:
i).Whether the S94/S64 Development Contribution Plans are up to-date.	Contributions Plans are considered to be up to date if there is evidence of maximum reasonable derivation of contributions, rather than necessarily basing this assessment on specific date that Plans are originated from. Compared to its peers, Port Macquarie-Hastings Council appears to be charging relatively high Section 94 contrbutions and Section 94 contributions exceed associated Section 94 expenditures, on average. On the basis of this, we deem Section 94 Contributions Plans to be broadly up to date (even though the Contributions Plan has not been updated as recent as its peers). Compared to its peers, port Macquarie-Hastings Council appears to be charging relatively high Section 64 contributions with respect to associated Section 64 expenditures. On this basis, we deem section 64 Contributions Plans to be broadly up to date (even though the Contributions Plan has not been updated as recent as its peers).
ii. Whether the charges in the Plans are adequate to fund the infrastructure identified.	Compared to its peers, Section 94 yearly contributions are relatively high with respect to Port Macquarie-Hastings Council's infrastructure commitments. Port Macquarie-Hastings Council has, however, projected that its Section 94 commitments are underfunded with respect to its projections of future contributions and expected cost of work outstanding, particularly related to roads and traffic, and open space works. Compared to its peers, Section 64 yearly contributions are relatively low with respect to Port Macquarie-Hastings Council's infrastructure commitments. This may imply that there is scope to raise Section 64 contributions to ensure adequacy going forward.
iii. Whether the Council is maximising its use of development contributions revenue in funding the forward works program.	Compared to its peers, Port Macquarie-Hastings Council would appear to be charging broadly comparable or higher levies than its peers (both Section 94 and Section 64). We have identified some potential minor opportunities for Section 94 levies to be reviewed, which could maximise contributions further.
Determine whether further opportunities exist to use reserve balances as a means of funding (including opportunities for borrowing against these reserves and the impact of such a strategy) for other projects not currently funded in the works program.	The usage of financial reserves varies according to the class of reserve. Restricted reserves may only be employed for their designated purposes and there are limited investment opportunities to accrue income from funds whilst held in reserve. Unrestricted reserves may be employed for general purposes (including investment purposes), or for funding additional unfunded projects. There may be some opportunity to utilise debt in bringing forward infrastructure spending, however sophisticated debt capacity modelling should be conducted before undertaking such a strategy for funding forward works program. Please also refer to the Sustainability Review report which is the subject of another report in this agenda.

Further information in respect of these issues is provided in Attachment 1, being the full report.

Whilst UTS:CLG have found Councils’ contribution plans to be broadly up to date, nonetheless, these plans are scheduled for review. The Open Space Contributions plan is presented as a separate report in this Council agenda.

In terms of undertaking further borrowings, Council has engaged UTS:CLG to also undertake a review into Councils’ financial sustainability. This is the subject of a separate report to Council in this agenda.

In noting the complexity of the Reserves report, UTS:CLG have also provided a summary report – titled Key Findings from Review of Reserves by UTS. This report is intended to summarise the key findings from the review and is provided as Attachment 2. Some extracts from this report are summarised below:

What are financial reserves and why do we need them?

In order to adequately provide infrastructure to support development activity in the community, Council identifies infrastructure priorities and puts money aside in reserve.

This is kept aside (held in reserve) until the money is required for the major infrastructure projects…such new works could include building new roads, community facilities and water and sewer systems. By saving this money in reserve, Council can use these funds as either an alternative, or in addition, to borrowing money to provide these assets.

It is generally preferable to use savings rather than borrow because a reliance on borrowings could result in the burden of excessive interest costs, which can have an adverse impact on Council’s financial sustainability. In addition, when infrastructure is funded through savings rather than borrowing, the money that is held in reserve can earn some interest revenue for Council.

What are current reserves being used for?

Most of the funds which are saved in reserve have external restrictions. This means that Council can only use them for specific purposes and cannot be used by council to fund general operations. Funds which carry external restrictions make up around 72% of all reserve funds of Council.

There are also some funds set aside for other priority infrastructure as deemed by Councils and Councillors. These are known as internally restricted reserves because they have been set aside for a particular purpose that has been determined internally by Council and so the money can be used for this specified purpose. This makes up around 28 per cent of all reserve funds.

What are Councils Current Reserves and what are they for?

An attachment titled Council Reserves at 30 June 2017 provides a full listing of all Council reserves, and their purpose.

It should be noted that whilst reserve balances exist, this may not be enough funding to provide for the expenditure required and in many instances is just an allocation. For example, within Councils External Restrictions for Water and Sewer, the balance in reserve as at 30 June 2017 totals $71 million. As stated by UTS:CLG in Attachment 2, Council is currently planning upgrades to water and sewer infrastructure. This includes an investment of around $120,000,000 to deliver a planned Water Treatment facility. In addition, other upcoming projects under Council’s consideration to take place in the coming years include the following:

Area 13 (Thrumster) Sewerage Treatment Plant $38,000,000

Southern Arm trunk main Pacific Highway to Bonny Hills $13,700,000

Southern Arm Trunk Main Cowarra balance tank to Pacific Hwy $ 5,000,000

Thrumster Reclaimed Reservoir $ 3,985,000

New Inlet trunk Main to Cowarra Dam from King Creek $12,000,000

Trunk Main Bonny Hills to Kew Reservoir $ 6,200,000

Area 15 Reservoir $ 5,350,000

$84,235,000

Together, this expected investment of around $200 million in water and sewer infrastructure upgrades means the current level of funds held in reserve is expected to not only be exhausted but possible require additional accumulation of reserves, in order to avoid requiring substantial borrowing to fund this infrastructure. This means that it is necessary for Section 64 reserves to remain relatively high for the time being, in preparation for this.

Each year, Councils reserve balances are audited as part of Councils year end financial statements, and can be found in Note 6(c). These are available on Councils website.

Options

This is an information report.

Community Engagement & Internal Consultation

Resolution 3 from the 19 April 2017 Council meeting requested the General Manager to provide updates on the progress of the financial reserves review to the Finance, Corporate Services and Information Technology Portfolio and to all Councillors via appropriate briefings, prior to a final report being tabled at a future meeting of Council.

· Internal engagement (and review updates) has occurred with:-

· General Manager

· Executive Group

· Chief Financial Officer

· Portfolio Councillors

· Councillors – having being provided with a draft report, and participation in a briefing conducted by UTS:CLG on 18 September 2017.

· Updates on progress of the Independent Review have also been provided as part of the Investments Report presented to Council on 21/06/17, 19/07/17, 16/08/17, and 20/09/17.

· A Question from Previous Meeting on the Financial Reserves Review was also included in the agenda for the Ordinary Council Meeting on 20/09/2017 as an update.

· Supplementary briefings to Councillors on S94 Contributions Planning occurred on 1 November 2017 and 8 November 2017.

Resolution 4 from the 19 April 2017 Council meeting requested that public education be undertaken that explains why the financial reserves have been established, how they receive income and how they relate to Council’s longer-term plans, including future projects that the reserves are likely to be allocated towards. It is envisaged that the information in this report is provided to satisfy this purpose, with a recommendation that an internal communications plan be developed.

Planning & Policy Implications

There are no planning and policy implications in relation to this report.

Financial & Economic Implications

There are no financial and economic implications in relation to this report.

Attachments

1 View. Port Macquarie-Hastings Reserves Review Report - UTS

2 View. Key Findings Summary Report - UTS

3 View. Council Reserves at 30 June 2017

AGENDA Ordinary Council

21/02/2018

Item: 09.09

Subject: Quarterly Budget Review Statement

Presented by: Corporate Performance, Rebecca Olsen

Alignment with Delivery Program

1.4.2 Manage Council’s financial assets, and provide accurate, timely and reliable financial information for management purposes and provide plain English community reporting.

- yi

RECOMMENDATION

That Council note the Quarterly Budget Review Statement for the December 2017 quarter.

Executive Summary

This report will detail the Quarterly Budget Review Statement (QBRS) for the period to the end of the second quarter of the 2017-2018 financial year (July 2017 to December 2017).

Discussion

The Quarterly Budget Review Statement (QBRS) is a statutory report prepared in accordance with the Local Government (General) Regulations, Sections 202 & 203.

The QBRS presents a summary of Council’s financial position at the end of each quarter. It is a mechanism whereby the Councillors and the community are informed of Council’s progress against the Operational Plan (original budget) and the last revised budget. It also outlines recommended changes and reasons for major variances.

Whilst the Local Government (General) Regulations requires the annual budget to be reviewed on a quarterly basis through this QBRS, Councillors are provided with details of the financial position and associated variances on a monthly exception basis.

Attached is the Quarterly Budget Review Statement for the December 2017 quarter for Council’s information, which includes the following components:

1. Statement by the Responsible Accounting Officer on Council’s financial position at the end of the year based on the information in the QBRS.

2. Budget review of Income and Expenditure in a consolidated format (including performance indicators).

3. Budget review of the Capital budget.

4. Budget review of the cash and investments position.

5. Budget review of contracts and other expenses.

6. TCorp Ratios in line with the Local Government Code of Accounting Practice.

Also attached is a confidential attachment on Consultancy engagements as resolved by Council under Item 09.09 Supply of Services to Council on 21 October 2015. This resolution resolved:

1. To Adopt Option 2 to expand the existing reporting format of the Quarterly Budget Review Statement to include additional categories of consultancy engagements including accounting, audit, legal, planning, architectural, surveying, environmental, IT and HR with individual consultant data to be provided in a confidential attachment.

2. Commence the reporting regime from the next Quarterly Budget Review Statement.

carried: 8/0

For: Besseling, Cusato, Hawkins, Intemann, Levido, Roberts, Sargeant and Turner

Against: Nil

This attachment titled “2017-2018 December Quarterly Budget Review Statement - Consultancy Engagements” provides information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct business. Local Government Act 1993 - Section 10A(2)(c).

The year-to-date (YTD) reporting in the QBRS is against the phased budgets, improving the reporting with comparisons to Council’s yearly and quarterly budgets. Actual expenditure amounts exclude commitments.

INCOME & EXPENSES

The YTD operating result excluding capital items is $49.7m, compared to a YTD budget of $36.3m. A significant amount of this $13.4m (favourable) variance is in timing, including $9.1m across Expenses and is described below.

The YTD operating result including capital items is $62.2m, compared to a YTD budget of $46.1m. Most of this $16.1m (favourable) variance is in timing and includes $2.3m in Grants & Contributions and $9.1m across Expenses, with $1.9m in Rates & User Charges mainly due to population growth. These are further described below.

The following key variances within the Income and Expense statement are noted:

INCOME

YTD Actual $130.9m; YTD Budget $124.0m; Variance $6.9m (favourable)

Income of $130.9m for the YTD to the end of the second quarter is 105.6% of the YTD budget of $124.0m, representing 68.0% of the $192.4m annual income budget.

Key points to note are as follows:

1. Rates & Annual Charges

YTD Actual $89.5m; YTD Budget $87.6m; Variance $1.9m (favourable)

Rates & annual charges of $89.5m are ahead of the expected YTD budget of $87.6m, being 102.2% of the YTD budget, and 98.1% of the $91.2m annual budget. The majority of rates are levied in July, with the exception of annual charges for water which are levied quarterly on the Water Notice.

The total YTD variance of $1.9m (favourable) mainly comprises of:

· $0.8m (favourable) for general fund rates;

· $0.6m (favourable) for annual sewer charges;

· $0.3m (favourable) for domestic waste charges;

· $0.2m (favourable) for annual water charges.

The favourable variances predominately relate to population growth in the area.

2. User Fees & Charges

YTD Actual $15.7m; YTD Budget $14.5m; Variance $1.2m (favourable)

User fees & charges of $15.7m represent 108.1% of the YTD budget of $14.5m, and 47.6% of the $33.0m annual budget. Note that the annual budget of $33.0m includes the late categorisation adjustment for FESL (which was previously shown under operating grants) against the published budget statement of $32.9m.

The total YTD variance of $1.2m (favourable) is primarily made up of:

· $0.6m (favourable) user charges for water consumption attributable to the timing of quarterly water billing notices;

· $0.5m (favourable) waste management tipping fees subject to demand. Note the corresponding increase in Expenses for the EPA Waste levy;

· $0.3m (favourable) fees for Planning, DA’s & Building Certification due to the continued increase in building and subdivision activity in the area; and

· $0.3m (adverse) aerodrome user fees mainly due to the timing of receipt of the fees, monthly in arrears.

3. Interest & Investment Revenue

YTD Actual $4.1m; YTD Budget $2.8m; Variance $1.3m (favourable)

Interest & Investment revenue of $4.1m against the YTD budget of $2.8m is 147.0% of the YTD budget and 61.8% of the annual budget of $6.6m. This comprises the Interest on Investments for the YTD of $4.0m, with an annual budget of $6.3m and Interest on Overdue Rates for the YTD of $0.1m with an annual budget of $0.3m. The favourable result is primarily due to higher cash levels due to project deferrals and high S94/S64 receipts. Further information on Investments can be found in the Investment report.

4. Other Revenues

YTD Actual $2.5m; YTD Budget $2.3m; Variance $0.2m (favourable)

Other revenues of $2.5m are 108.8% of the $2.3m YTD budget, and 50.7% of the $5.0m annual budget.

The total YTD variance of $0.2m (favourable) is primarily made up of income from the sale of Carbon credits.

5. Operating Grants & Contributions

YTD Actual $6.5m; YTD Budget $6.9m; Variance $0.4m (adverse)

YTD Operating grants & contributions are $6.5m compared to the YTD budget of $6.9m. The YTD variance is $0.4m (adverse) or 94.4% of the YTD budget, and the YTD actuals are 34.4% of the annual budget of $18.9m.

The total YTD variance of $0.4m (adverse), all due to timing, mainly comprises of the following:

· $0.1m (adverse) Floodplain Management Plan Implementation;

· $0.1m (adverse) North Brother Catchment Flood Study;

· $0.1m (adverse) Wrights Creek/Hibbard Floodway;

· $0.1m (adverse) Library Subsidy;

· $0.1m (adverse) Pensioner Rates subsidy; and

· $0.1m (favourable) Waste grant for Better Recycling.

6. Capital Grants & Contributions

YTD Actual $12.5m; YTD Budget $9.8m; Variance $2.7m (favourable)

YTD income from capital grants and contributions is $12.5m against the YTD budget of $9.9m, and represents 33.4% of the $37.5m annual budget. The YTD variance of $2.6m (favourable) is further dissected into grants and contributions and is discussed below:

a. YTD Capital grant income is below the YTD budget by $3.5m. The main variances as follows, are due to timing:

· $0.9m (adverse) Flynns Beach Seawall;

· $0.9m (adverse) Bulli Creek Bridge Replacement;

· $0.5m (adverse) Wauchope CBD Pedestrian Design & Construction;

· $0.4m (adverse) Port Macquarie Aerodrome Terminal Building;

· $0.2m (adverse) Batar Creek Bridge;

· $0.2m (adverse) Coastal/Estuary Management Plan;

· $0.2m (adverse) Boundary Street Flood Access;

· $0.1m (adverse) Lake Cathie Accessible Fishing Platform;

· $0.1m (adverse) Shared Path Ocean Drive, Pacific Highway to Glen Haven Drive; and

· $0.4m (favourable) Wauchope Aquatic Pool upgrade, funding received earlier than expected (timing issue).

b. YTD Capital contribution income is above the YTD budget by $6.1m. Capital Contributions comprise two elements, cash and non-cash. The cash element is Section 64 & 94 Developer Contributions. The second element is non-cash contributions, being Developer provided assets.

· YTD Cash income is $11.8m, against the YTD budget of $5.7m. This equates to 65.6% of the annual budget of $18.0m. The variance is due to the continuing increased subdivision and building activity in the area.

· Non-cash contributions primarily represent dedicated assets from Developers and to date none have been received for capitalisation.

EXPENSES

YTD Actual $68.8m; YTD Budget $77.8m; Variance $9.0m (favourable)

1. Employee costs

YTD Actual $21.0m; YTD Budget $23.7m; Variance $2.7m (favourable)

YTD employee costs are $21.0m versus the YTD budget of $23.7m, creating a favourable variance of $2.7m. As at the end of this quarter, this equates to 88.7% of the YTD budget, and 41.8% of the annual budget of $50.2m.

Variances are largely due to unfilled positions and timing differences that are contingent upon when employees take their leave and the duration of that leave.

Other variances include:

· $0.4m (favourable) Workers Compensation. This varies depending on the number of injury claims. The workers’ compensation premium remains below the budget. It is deemed prudent to keep the budget at this level, as injury claims determine the actual premium. PMHC actively works to keep claims as low as possible and this is represented by a low claims history.

2. Borrowing costs

YTD Actual $1.6m; YTD Budget $1.6m; Variance $0.0m

3. Materials & Contracts

YTD Actual $17.4m; YTD Budget $23.2m; Variance $5.8m (favourable)

Expenditure to the end of the second quarter is $17.4m, which is 75.1% of the YTD budget of $23.2m, and 40.4% of the annual budget of $43.0m. The YTD variance of $5.8m (favourable) is mainly due to timing, unless stated otherwise. The main variances are:

· $2.0m (favourable) Street Lighting LED upgrade, this is underway.

· $1.2m (favourable) Waste: across various maintenance projects;

· $0.4m (favourable) Water: across various maintenance projects;

· $0.3m (favourable) Sewer: across various maintenance projects;

· $0.7m (favourable) Natural Resources: across various maintenance projects;

· $0.4m (favourable) Digital Technology: $0.3m (favourable) ICT Infrastructure and $0.1m (favourable) Authority Asset Management System;

· $1.5m (adverse) Transport & Traffic: $1.1m (adverse) Block Grant & $0.4m (adverse) Sealed Roads spending earlier than expected due to a readily available contractor & ideal weather conditions.

4. Other Expenses

YTD Actual $6.2m; YTD Budget $6.8m; Variance $0.6m (favourable)

The amount expended of $6.2m for Other Expenses is 91.3% of the YTD budget of $6.8m, and 47.5% of the annual budget of $13.1m. The YTD variance of $0.6m (favourable) is predominately made up of:

· $0.5m (favourable) Electricity & Street Lighting expenses, noting that the payment for these services is made a month in arrears;

· $0.2m (favourable) Land Valuation Fee, annual invoice not yet received; and

· $0.3m (adverse) Section 880 Waste Levy, increased usage of waste depots, noting the corresponding increase in waste tipping fees as stated above.

5. Net loss from disposal of assets

YTD Actual $0.3m; YTD Budget $0.3m; Variance $0.0m

This section relates to the net profit or loss, which occurs from either the sale of assets, such as plant items or land or, disposal of old assets following capitalisation when an asset is renewed:

Net profit on sale on assets $23k

Sale Proceeds received, yet to be processed

($315k for land and $23k for plant and equipment) $338k

Total $361k

CAPITAL EXPENDITURE (excluding Loans)

YTD Actual $24.4m; YTD Budget $48.0m; Variance $23.6m (favourable)

This section includes a comparison of the actual result against the phased capital expenditure budget. Note that the total carry-over budget from 2016-2017 is $19.0m, of which $16.6m is capital, and the remaining balance of $2.4m is operating expenditure.

To the end of the second quarter and excluding the Loan repayments, $24.4m was expended being 51.0% of the YTD budget of $48.0m, and 19.3% of the annual budget of $126.8m. The YTD ‘under-spend’ is $23.6m. In addition to this expenditure, there are commitments for works in the order of $10.2m.

As a comparison to the YTD expenditure to the end of the second quarter in 2016-2017, a total of $33.1m (excluding loan repayments), was expended being 65.0% of the YTD budget of $50.9m and 31.1% of the annual budget of $106.5m.

The key variances are detailed below. Of these, Council anticipates most to be underway or complete at 30 June 2018.

General Fund - YTD Actuals $20.4m; YTD Budget $34.5m, YTD underspend $14.1m

General Fund has expended $20.4m of the $34.5m YTD budget which equates to 59.2% and is 26.6% of the annual budget of $76.9m. The YTD ‘under-spend’ is $14.1m with main ‘under-spends’ noted below:

· $2.4m Developer Provided Assets – No Developer provided assets have been capitalised at this stage as the relevant information has not been received;

· $1.7m Flynns Beach – Upgrading of Seawall – multi-year project, behind schedule, anticipate awarding the design and construction tender early in 2018;

· $1.2m Wauchope Pool Upgrade – on-track, variance due to timing;

· $1.1m Capital Computer Projects – This is a multi-year project and is currently on target, due for completion late April 2018. Authority v7.0 upgrade complete, Skype for Business is in the testing phase and due for deployment February 2018, Wifi upgrades have commenced with access points being fitted, network switch upgrades are completed;

· $1.0m Bulli Creek Bridge Replacement – This is on target, construction planning complete. Services have been relocated and the construction phase has commenced;

· $0.7m Wauchope CBD Pedestrian Facility – This is a multi-year project with the design complete and construction phase imminent;

· $0.6m Beechwood Road Reconstruction – Riverbreeze Drive to Rosewood – On target. Project scope increased to include Riverbreeze intersection. Construction commenced September 2017, but impacted by difficult ground conditions & some wet weather;

· $0.5m Batar Creek Bridge Replacement – Design & construction tender awarded, design contractor behind schedule. Targeting site establishment early in 2018; and

· $0.5m Stormwater Renewal Program – Project planning is finalised with request for quote documentation advertised in November. Project to be completed within the financial year.

There is one project ahead of the YTD budget being:

· $1.3m High Traffic Resurfacing – a readily available contractor & ideal weather conditions;

Waste - YTD Actuals $0.0m; YTD Budget $0.3m, YTD underspend $0.3m

The YTD ‘under-spend’ of $0.3m mainly relates to:

· $0.1m Cairncross Upgrade & Expansion – Purchase orders have fully committed this project budget.

· $0.1m Kingfisher Waste Depot – This project is being monitored, the project scope will be determined pending confirmation.

Water - YTD Actuals $2.1m; YTD Budget $6.1m, YTD underspend $4.0m

The YTD ‘under-spend’ for Water against the YTD budget totals $4.0m, being 34.4% of the YTD budget, with key ‘under-spends’ noted below:

· $1.7m Thrumster RW Interim Supply – project commenced;

· $0.7m Beechwood Rosewood Reservoir – This project is on target, the design is nearing completion;

· $0.4m Sancrox Reservoir Trunkmain to Area 13 - On target, design and pre-construction underway;

· $0.4m Reclaimed Water – Area 14 Trunk Main Outlet – Staged delivery, tender for stage 1 awarded;

· $0.2m Developer Provided Water Assets - No Developer provided assets have been capitalised at this stage as the relevant information has not been received.

· $0.2m Port dam 33kv Switchgear Upgrade - On target, design and pre-construction underway, tender to be released by the end on January 2018.

Sewer - YTD Actuals $1.9m; YTD Budget $7.1m, YTD underspend $5.2m

The Sewer section has a YTD budget ‘under-spend’ of $5.2m being 26.5% of the YTD budget. The main ‘under-spends’ are:

· $0.4m Small Towns Sewer Scheme Long Flat - behind schedule, review of environmental factors & tender documentation complete;

· $0.4m Area 14 Reclaimed Water Trunk Main Upgrade - on target, staged delivery, tender for construction of first stage awarded;

· $0.4m Port Macquarie Pump Station no.71 & rising Main - on target, design continuing;

· $0.4m Small Towns Sewer Scheme Telegraph Point - behind schedule, review of environmental factors & tender documentation complete;

· $0.4m Small Towns Sewer Scheme Comboyne - behind schedule, review of environmental factors & tender documentation complete;

· $0.5m Developer provided assets – No Developer provided assets have been capitalised at this stage as the relevant information has not been received.

· $1.5m Kew/Kendall Sewer Treatment Plant Area 15 – This is unlikely to commence until next financial year.

TCorp Ratios

Last year the presentation methodology of all ratios was reviewed to ensure that the reported ratio is a projected year end result. This projection is based on approved full year budget wherever possible, or where this is not possible, it is based on an estimated year end position. The methodology is indicated in the table attached.

Operating Performance Ratio

The Operating Performance ratio is often considered the most important ratio for Council to meet. The projected result as at December 2017 includes all approved adjustments to budgets up to and including the December Council meeting.

There has been a deterioration in this ratio since the original approved budget and Council is closely monitoring budgets to include any savings in future monthly budget reviews. The deterioration is primarily due to the inclusion in the budget of $2m for energy efficient street lighting. As these are not council’s assets any expenditure has a negative effect on Council’s operating performance ratio. It should be noted however, that in future years the decrease in electricity costs for this lighting will have a positive effect on this ratio.

This ratio may be impacted by year end accruals.

Rates and Annual Charges Outstanding Ratio

Considerable work has been, and continues to be undertaken to enhance this ratio and the ratio achieved for the 2016-2017 financial year (4.85%) was the best Council has produced since 2006. The current forecast is an estimated 4.61%. It should be noted that with reduced outstanding rates comes reduced income from interest charged on outstanding rates and annual charges which then negatively affects other ratios such as Operating performance and Own source revenue. The benchmark for this ratio is less than 5% which Council now meets.

Building and Infrastructure Renewals Ratio

The building and infrastructure renewals ratio is a difficult ratio for Council to meet as the definition of a renewal is “Works to replace existing assets or facilities with assets or facilities of equivalent capacity or performance capability”. At this early stage the ratio has been left at the ratio calculated for the original budget.

Council often increases the capacity of an asset whilst undergoing a renewal but this portion of the cost is not considered a renewal.

The ratio does not consider the need for Council to spend on new infrastructure, and is also adversely impacted by gifted assets due to the increase in depreciation as a consequence of these assets.

For a Council to increase its renewal spend to improve this ratio performance may have an impact on the funds available for new assets, such as new footpaths etc.

The Office of Local Government has released a “Special Schedule 7 Appendix B - Examples of Renewal and Rehabilitation Costs and Activities” which specifies that costs previously regarded as new assets can be classified as renewals where they relate to the modern engineering equivalent.

Infrastructure Backlog

This ratio has been estimated based on historical percentages applied to budget spend. Significant reseals were undertaken in 2016/17 and are expected to be continued in this financial year and it is anticipated that this expenditure will address a portion of Council’s infrastructure backlog.

Assets Maintenance Ratio

Significant work was done in prior years to calculate the actual amount of “required” maintenance for purposes of calculating this ratio. This figure is currently forecast at 0.93 for this financial year. At this early stage of the year the ratio has been left at the ratio calculated for the original budget.

The Office of Local Government (OLG) definition of required maintenance are those costs identified in the Asset Management Plans (for the reporting period) of routine activities that should be undertaken to sustain the asset in a functional state, ensuring the assets reach the predicted useful life, excluding rehabilitation or renewal. Therefore, if additional road reseals/renewals continue to occur it is expected that the required maintenance may reduce, improving this ratio.

Furthermore the OLG has released a “Special Schedule 7 Appendix A - Examples of Maintenance and Operating Activities” which will assist Council in ensuring the correct types of expenditure are included in this ratio.

Options

Council may adopt the recommendation as proposed or amend as required.

Community Engagement & Internal Consultation

Not applicable.

Planning & Policy Implications

Nil.

Financial & Economic Implications

There are no financial and economic implications in this report. The variances between budget and actual results continue to be monitored.

Attachments

1 View. December 2017 Quarterly Budget Review Statement

2 View. Confidential Consultancy Engagements December 2017 (Confidential)

AGENDA Ordinary Council

21/02/2018

Item: 09.10

Subject: Monthly Financial Review for January 2018

Presented by: Corporate Performance, Rebecca Olsen

Alignment with Delivery Program

1.5.1 Manage Council’s financial assets and provide accurate, timely and reliable information.

RECOMMENDATION

That Council adopt the adjustments in the “Financial and Economic Implications” section of the Monthly Financial Review Report for January 2018.

Executive Summary

This report will detail the monthly budget adjustments to 31 January 2018.

The Council adopted budget position as at 1 July 2017 was a shortfall of $586,858.

The approved budget adjustments since that time have reduced this shortfall position to $64,023. The budget adjustments included in this report will maintain the budget position at a shortfall of $64,023.

Discussion

Each month, Council’s budgets are reviewed by Managers and Directors with any required adjustments reported. The purpose of this report is to provide Council with an up to date view of the current actual financial position in comparison to the original adopted 2017-2018 budget along with the proposed movement of funds to accommodate any changes.

Any overspends greater than $50,000 and 2% of the project budget are reviewed and approved by the Executive Group, being their function to oversee operational activities and approve operational actions.

Monthly Budget Review Summary

Original Budget as at 1 July 2017	Shortfall	($586,858)
Plus adjustments:
July Review	Balanced	$0
August Review	Surplus	$267,217
September Review	Shortfall	($34,492)
October Review	Balanced	$0
November Review	Surplus	$290,110
December Review	-	-
January Review	Balanced	$0
Forecast budget position for 30 June 2018	Shortfall	($64,023)

The following adjustments reflect budget movements as a result of over-expenditure reviews, transfers between accounts, grant funding, transfer from reserves and additional receipts etc. that have no impact on the budget position (for example additional income has an associated expenditure budget):

Description	Notes	Funding Source	Amount
Grant Funds	1	Grant/Reserve/Env Levy	$181,226
Reserve Transfers	2	Reserve	$1,696,902
Transfer between projects	3	S94/Revenue	$52,288
Dividend Payment	4	Revenue	$1,925,430
Council Report	5	Reserve	$123,856
Additional Income	6	Revenue	$18,000
Total			$3,997,702

1. Grant funding.

The total increase in project value for 2017-2018 is $181,226.

Council project	Grant provider	Amount	Funding	Comments	Section
Building Better Regions Fund – Neon Summer	NSW Department of Industry, Innovation & Science	$19,102	Grant	100% Grant	Glasshouse
Building Better Regions Fund – PM Hastings Skills Audit	NSW Department of Industry, Innovation & Science	$50,524	Grant/Reserve	50/50 Grant	Economic Development
Lake Cathie-Illaroo Road Revetment Wall Funding Model	NSW Office of Environment & Heritage	$37,600	Grant/Env Levy	50/50 Grant	Natural Resources
Hastings River Additional Streamflow & Rainfall Gauges	NSW Office of Environment & Heritage	$50,000	Grant/Env Levy	2:1 Grant	Natural Resources
Tabel Street School Zone	Roads and Maritime Services	$24,000	Grant	100% Grant	Transport & Traffic
TOTAL		$181,226

2. Reserve Transfers

There has been adjustments this month that increase the level of some reserves and reduce the level of others.

Project Name	Reserve	T/f from (reduction) T/f To (increase)	Other Funding	Reserve Amount	Comments
Removal of Asbestos – 120 Gordon Street, Port Macquarie	Working Capital	T/f from	$20,000 T/f from another project	($100,000)	As part of a third party development at 120 Gordon St, PM Council agreed to provide site access over an existing Council owned gravel laneway area. Access was agreed on the basis that the DA applicant form and seal this area as a roadway. During initial site excavation works on Council's site, asbestos containing material (ACM) was discovered. Due to the proximity of this site to existing residential and commercial properties, the removal of the ACM from Council's site was identified as the most appropriate response.
Oxley Oval – Sporting Infrastructure Upgrade	Working Capital	T/f From	$20,000 S94	($280,000)	This budget allocation is in line with Item 10.04 to the December 2017 Ordinary Council Meeting.
Sale of Carbon Credits	Waste Management	T/f To		$133,098	Council received income from the sale of carbon Credits. This income is contained within the waste fund.
Waste Section 880 Levy	Waste Management	T/f from		($1,300,000)	This budget has been increased to cover an increased number of local projects commencing/finishing requiring waste facilities such as Stingray Creek Bridge and Pacific Highway upgrade. In addition, a large increase in concrete waste due to complications with the local crushing contractor has also contributed to this increase. Council is required to pay $76.70/tonne for waste entering the site.
Wauchope Transfer Station	Waste	T/f from		($150,000)	The Wauchope Transfer Station is on a constrained site, with the growing volumes of material stockpiles continually encroaching onto traffic lanes. Council has recently purchased neighboring land to enable this expansion and to allow for better stockpile management.
Net Transfer from reserves				($1,696,902)

3. Transfer between projects

Project Name – Funds transferred to

Project Name – Funds Transferred from

Budget

Funding

Comments

PM Airport Environmental Approvals

PM Airport Improvements

$20,000

Airport Reserve

This is to cover the continuation of the environmental approvals project (i.e.Biocertification and EPBC Act referral) that is required for both current operation and securing the long term future of the Airport through planned developments.

Natural Resources Salaries

Sealed Road Maintenance

Parks Maintenance

Development Assessment (additional income)

$20,665

$5,811

$5,812

Revenue

Council has employed an Environmental Assessment Officer that is to be allocated across a number of areas. This adjustment covers the general fund component for the remainder of the year.

Total

$52,228

4. Dividend Payments

At the meeting of Council on the 13 December 2017 it was resolved:

RESOLVED: Hawkins/Intemann

That Council:

1. Note the achievement of substantial compliance with each of the six best practice guidelines (NSW Best Practice Management Guidelines for Water Supply and Sewerage, August 2007) of:

(a) Strategic Business Planning

(b) Pricing

(c) Water Conservation

(d) Performance Reporting

(e) Integrated Water Cycle Management

2. Authorise the application to the NSW Government for approval to pay a dividend of $896,454 to the General Fund from the surplus in Water Supply operations for the 2016-2017 financial year.

3. Authorise the payment of $99,606 for tax equivalents to the general fund from the Water Supply operations for the 2016-2017 financial year.

4. Authorise the application to the NSW Government for approval to pay a dividend of $836,433 to the General Fund from the surplus in the Sewerage Fund for the 2016-2017 financial year.

5. Authorise the payment of $92,937 for tax equivalents to the general fund from the Sewerage Fund for the 2016-2017 financial year.

6. Determine that if successful in its applications that the dividend will be quarantined for stormwater related works.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

Council has now received approval from the Department of Industry to pay a best practice dividend from both the water supply and sewerage funds for 2017/18.

In line with the resolution above these funds have been quarantined for stormwater works and transferred to the stormwater reserve.

5. Council Reports

At the meeting of Council on the 13^th December 2017 is was resolved.

RESOLVED: Turner/Hawkins

That Council:

1. Provide in principle support to projects that mark the 2018 John Oxley Bicentenary.

2. Set up a Bicentenary Working Group of the Cultural Steering Group (BWG) to assist with the strategy, the organisation and the implementation of the Bicentenary program.

3. Enable the ad hoc participation of suitably qualified persons (relevant experience and expertise) onto the BWG.

4. Request the BWG provides regular reporting to Council through updates via the Cultural Steering Group.

5. Workshop alternative wording for the draft Bicentenary logo with the BWG.

6. Establish a new line item in both the 2017/18 and 2018/19 Operational Plans – Bicentenary Activities.

7. Re-allocate GL 41433 ‘WW1 and ANZAC Commemoration’ with a current budget of $43,856 to ‘Bicentenary Activities’.

8. Transfer $80,000 from the Cultural reserve to Bicentenary Activities.

9. Approve a dedicated Bicentenary Grants stream from the current Community Grant budget.

carried: 8/0

For: Alley, Cusato, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

The budget transfers mentioned in this resolution have been included in the adjustments this month.

6. Additional Income

Council has entered into a new contract for bus shelter advertising. The income collected ($18,000) will be used on the maintenance of the bus shelters.

Options

Council may adopt the recommendation as proposed or amend as required.

Planning & Policy Implications

There are no planning and policy implications.

Financial & Economic Implications

Attached to the report for information is each individual budget adjustment by Division and Section. The budget movements within this report maintain the current budget position to a shortfall of $64,203.

Responsible Accounting Officer Statement

The approved original budget result for 2017-2018 was a shortfall of $586,858. The budget adjustments in this report improve the current budget position to a shortfall of $64,023. The shortfall position is considered an un-satisfactory result for the year, and accordingly budgets will be closely monitored during the remainder of the year.

Attachments

1 View. January 2018 budget Review

AGENDA Ordinary Council

21/02/2018

Item: 09.11

Subject: Investments - December 2017

Presented by: Corporate Performance, Rebecca Olsen

Alignment with Delivery Program

1.5.1 Manage Council’s financial assets and provide accurate, timely and reliable information.

RECOMMENDATION

That Council note the Investment Report for the month of December 2017.

Executive Summary

· Total funds invested as at 31 December 2017 equals $263,332,001.

· The actual year-to-date investment income of $4,001,111 represents 63.20% of the total annual investment income budget of $6,330,600.

· In line with Council’s Investment Policy, the total portfolio has performed above benchmark levels.

Discussion

Overview

Councils (including Port Macquarie-Hastings Council) provide a broad range of services and associated infrastructure to their communities.

These services include (but are not limited to) the following:

- Water and Sewer services;

- Waste services;

- Port Macquarie Regional Airport;

- Cemeteries;

- Roads and Bridges;

- Various Recreation and Cultural facilities.

The Port Macquarie-Hastings area is a high growth centre of the North Coast region and is expected to accommodate a significant proportion of regional growth over the next two decades. The population will grow from 79,114 in 2016 to 102,926 in 2036. As a consequence of this growth, Council must not only provide services to the existing community and maintain existing assets, but Council must also plan for future maintenance and capital expenditure on the infrastructure that will be needed to support the community, business and visitors to the area into the future.

Council holds cash reserves as an alternative to (or to supplement) borrowing. As at June 2017, Council held $251 million in cash and reserves. Predominantly, these reserves are all allocated for specific purposes, with 70% of these reserves legally only being able to be used for the purpose for which they were collected (for example for water and sewer). The remaining reserves are also predominantly held for specific purposes (for example, for the development of the Airport, or to fund projects which have already commenced). The balances of these reserves are audited annually and published in Council’s financial statements.

The level of reserves held by Port Macquarie-Hastings Council is not disproportionate to other similar Councils, noting that different Council’s provide different services. Not all Councils provide Water and Sewer services for example which require significant capital investment.

The balances of these reserves are invested until such time as they are required. This report details how Council invests these reserves to ensure the appropriate balance between risk and financial return (through interest).

Current Investments

Council is required to undertake investments in accordance with section 625 of the Local Government Act 1993. This report provides details of Council’s investments, and certifies that all funds that Council has invested as at 31 December 2017, comply with this Act.

All investments have been made in accordance with the Act and Regulations, and Council’s Investment Policy.

As at 31 December 2017, the investments held by Council totalled $263,332,001 and were attributed to the following funds:

Whilst the current level of investments remain high, these largely relate to funds which have legal restrictions (for example water and sewer), or for funds held for specific purposes.

These funds may be spent in the shorter or longer term depending on the required timing of future works. The totals will fluctuate dependent on the status of individual projects.

Investments by Fund – as at 31 December 2017

Portfolio Performance

At the Ordinary Council meeting held on 15 November 2017, Council resolved as follows:

09.10 Investments - October 2017

RESOLVED: Hawkins/Griffiths

That Council:

1. Note the Investment Report for the month of October 2017.

2. Request the General Manger submit a report to a future Council Meeting (before June 2018) after review by the Audit, Risk & Improvement Committee that examines alternative investment options that are likely to give Council a higher return on its investments whilst remaining within approved risk parameters.

3. Request the General Manager to submit a report to the February 2018 meeting of Council that reviews the investment income budget for the 2017/2018 Financial Year.

carried: 9/0

For: Alley, Cusato, Dixon, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

In reference to Resolution #3 above, a revised budget was calculated and estimated at an additional $1,000,000. This adjustment was incorporated in the monthly November Financial review council paper and adopted by Council on 13 December 2017.

The estimated budget will continue to be revised for the remainder of the year and adjusted as necessary.

· Council’s total investment portfolio performance was 1.28% above the benchmark (3.04% against 1.76%). Benchmark being the Bank Bill reference rate as at 29 December 2017 as identified on www.bloombergindices.com.

· The actual year-to-date investment income of $4,001,111 represents 63.20% of the revised total annual investment income budget of $6,330,600.

The year-to-date actual reflects total earning including both cash and accruals.

Investment Portfolio Mix

Council’s current portfolio is made up of cash and term deposits. The total term deposits represent 91.90% of the total investment portfolio. As at 31 December 2017, the total investment portfolio was $263,332,001 which is down from $263,672,218 as at 27 November 2017. This consists of term deposits of $242,000,000 and cash $21,332,001.

Term Deposits - Current month $242,000,000 - Prior month $243,000,000

Council’s Investment Policy identifies the maximum amounts that can be invested in term deposits within the various maturity constraints and the amounts which can be held with various institutions based on their respective credit ratings.

Council’s current term deposit portfolio mix as at 31 December 2017 is as follows:

Term to Maturity

This table as at 31 December 2017 shows the amounts invested by various maturity profiles. These are in accordance with limits established by Council’s Policy.

Table 1:

Overall Portfolio Credit Framework

All institutions that Council invests with are rated by acknowledged credit rating agencies, Standard & Poors and Moody’s and Fitch. Council policy specifies limits that can be invested within each rating band. These limits are to help avoid over exposure in any rating category. The tables below group the amounts held with various institutions based on their respective credit ratings, and compares the total to the maximum limit set for each credit rating category.

As previously advised, Standard & Poors and Moody’s downgraded a number of Australian financial institutions which affected the limits held within both the rating and institutional limit frameworks, as required within Council’s Investment Policy. The Investment Policy has now been altered to accommodate such an event in the future.

Standard & Poors

As previously identified, as a result of the downgrading by Standard and Poors of Bank of Queensland and Bendigo & Adelaide Bank from the A to the BBB category, the BBB category is in excess of the policy’s maximum limits.

Table 2a:

Moody’s

Whilst Moody’s also downgraded a number of institutions, no institution was required to move to a different rating band. Council therefore remains within policy limits.

Table 2b:

Cash - Westpac Business Cash Reserve Account

Current month $21,332,001 - Prior month $20,672,218 (27 Nov 2017)

This is not available unrestricted cash.

This is a maxi account which the Council uses as a cash management tool only. Funds are transferred in and out of this account daily prior to investment, given its higher rate of interest than the general payment account. Levels in this account vary dependent on the time of month and rate payer/creditor cycle.

Summary of Net Investment Movements –27 November 2017 to 31 December 2017

It should be noted that funds currently within the Westpac Business Cash Reserve Account are attracting an interest rate of 2.2% being the current cash rate plus 0.7% (based on the cash rate drop on 3 August 2016), which performs better than the benchmark (1.76% 29 December 2017).

The largest sector of the portfolio is the term deposit allocation of $242,000,000 (last month $243,000,000) or 91.90% of the total.

Investment Portfolio by Maturity Date - as at 31 December 2017

Options

This is an information report.

Community Engagement & Internal Consultation

Council uses the services of an independent financial advisor, on an as needs basis with investments. The investments placed this month were term deposits. At least three quotes were obtained from financial institutions in line with Council’s Investment Policy. The services of an independent financial advisor were not required. Council obtains regular updates regarding market activities positions from various institutions.

Planning & Policy Implications

There are no planning and policy implications.

Financial & Economic Implications

Benchmark and budget levels have been met on a year to date basis. On an annual basis, if benchmark levels are not reached, then this may result in budget cuts in other areas to fund the shortfall.

Council’s total investment portfolio performance for 31 December 2017 is 1.28% above the benchmark (3.04% against 1.76%) and year to-date income is 63.20% of the total annual budget.

It should be noted that investment income is noted as a gross amount. Section 97(5) of the Local Government Act 1993 indicates that any security deposit held with Council must be repaid with interest accrued. These security deposits will only relate to bonds held for security to make good damage done to works.

The overall investment income will be adjusted at financial year end by the total interest refunded on repayment of bonds. As Council constantly receives and refunds bonds, it is difficult to accurately determine the quantum of these refunds. This financial year to date Council has refunded bonds with an associated interest component of $28,876.79 which will be monitored and advised monthly.

Certification

I hereby certify that the investments listed within this report have been made in accordance with Section 625 of the Local Government Act 1993, clause 212 of the Local Government (General) Regulation 2005 and Council’s Investment Policy.

Karen Rowe

Responsible Accounting Officer

Attachments

Nil

AGENDA Ordinary Council

21/02/2018

Item: 09.12

Subject: Investments - January 2018

Presented by: Corporate Performance, Rebecca Olsen

Alignment with Delivery Program

1.5.1 Manage Council’s financial assets and provide accurate, timely and reliable information.

RECOMMENDATION

That Council note the Investment Report for the month of January 2018.

Executive Summary

· Total funds invested as at 31 January 2018 equals $261,077,683.

· The actual year-to-date investment income of $4,671,936 represents 73.80% of the total annual investment income budget of $6,330,600.

· In line with Council’s Investment Policy, the total portfolio has performed above benchmark levels.

Discussion

Overview

Councils (including Port Macquarie-Hastings Council) provide a broad range of services and associated infrastructure to their communities.

These services include (but are not limited to) the following:

- Water and Sewer services;

- Waste services;

- Port Macquarie Regional Airport;

- Cemeteries;

- Roads and Bridges;

- Various Recreation and Cultural facilities.

Current Investments

All investments have been made in accordance with the Act and Regulations, and Council’s Investment Policy.

As at 31 January 2018, the investments held by Council totalled $261,077,683 and were attributed to the following funds:

Whilst the current level of investments remain high, these largely relate to funds which have legal restrictions (for example water and sewer), or for funds held for specific purposes.

These funds may be spent in the shorter or longer term depending on the required timing of future works. The totals will fluctuate dependent on the status of individual projects.

Investments by Fund – as at 31 January 2018

Portfolio Performance

At the Ordinary Council meeting held on 15 November 2017, Council resolved as follows:

09.10 Investments - October 2017

RESOLVED: Hawkins/Griffiths

That Council:

1. Note the Investment Report for the month of October 2017.

3. Request the General Manager to submit a report to the February 2018 meeting of Council that reviews the investment income budget for the 2017/2018 Financial Year.

carried: 9/0

For: Alley, Cusato, Dixon, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

Against: Nil

The estimated budget will continue to be revised for the remainder of the year and adjusted as necessary.

· Council’s total investment portfolio performance was 1.28% above the benchmark (3.02% against 1.74%). Benchmark being the Bank Bill reference rate as at 31 January 2018 as identified on www.bloombergindices.com.

· The actual year-to-date investment income of $4,671,936 represents 73.80% of the revised total annual investment income budget of $6,330,600.

The year-to-date actual reflects total earning including both cash and accruals.

Investment Portfolio Mix

Council’s current portfolio is made up of cash and term deposits. The total term deposits represent 91.54% of the total investment portfolio. As at 31 January 2018, the total investment portfolio was $261,077,683 which is down from $263,332,001 as at 31 December 2017. This consists of term deposits of $239,000,000 and cash $22,077,683.

Term Deposits - Current month $239,000,000 - Prior month $242,000,000

Council’s current term deposit portfolio mix as at 31 January 2018 is as follows:

Term to Maturity

This table as at 31 January 2018 shows the amounts invested by various maturity profiles. These are in accordance with limits established by Council’s Policy.

Table 1:

Overall Portfolio Credit Framework

Standard & Poors

Table 2a:

Moody’s

Whilst Moody’s also downgraded a number of institutions, no institution was required to move to a different rating band. Council therefore remains within policy limits.

Table 2b:

Cash - Westpac Business Cash Reserve Account

Current month $22,077,683 - Prior month $21,332,001

This is not available unrestricted cash.

Summary of Net Investment Movements –1 January 2018 – 31 January 2018

The largest sector of the portfolio is the term deposit allocation of $239,000,000 (last month $242,000,000) or 91.54% of the total.

Investment Portfolio by Maturity Date - as at 31 January 2018

Options

This is an information report.

Community Engagement & Internal Consultation

Planning & Policy Implications

There are no planning and policy implications.

Financial & Economic Implications

Benchmark and budget levels have been met on a year to date basis. On an annual basis, if benchmark levels are not reached, then this may result in budget cuts in other areas to fund the shortfall.

Council’s total investment portfolio performance for 31 January 2018 is 1.28% above the benchmark (3.02% against 1.74%) and year to-date income is 73.80% of the total annual budget.

The overall investment income will be adjusted at financial year end by the total interest refunded on repayment of bonds. As Council constantly receives and refunds bonds, it is difficult to accurately determine the quantum of these refunds. This financial year to date Council has refunded bonds with an associated interest component of $29,761.24 which will be monitored and advised monthly.

Certification

Karen Rowe

Responsible Accounting Officer

Attachments

Nil

AGENDA Ordinary Council

21/02/2018

Item: 09.13

Subject: 2017-2018 Operational Plan - Quarterly Progress Report as at 31 December 2017

Presented by: Corporate Performance, Rebecca Olsen

Alignment with Delivery Program

1.1.4 Provide easy to understand and accessible community reporting.

RECOMMENDATION

That Council note the 2017-2018 Operational Plan - Quarterly Progress Report as at 31 December 2017.

Executive Summary

The 2017-2018 Operational Plan is a sub-plan of the newly adopted 2017-2021 Delivery Program. The Delivery Program is designed as the single point of reference for all key activities to be undertaken during a term of Council. The Operational Plan spells out the detail of the individual actions, projects and activities Council will undertake in the financial year to meet the commitments made in the Delivery Program.

Progress reports to Council and the community provide a central point of information on the progress on delivering the actions set out in the 2017-2018 Operational Plan. This quarterly progress report outlines what Council is delivering against each action, activity or project as well as performance measures in the adopted plan and seeks to provide concise and accurate information in relation to the progress made.

The overview section of the report provides a statistical snapshot of Operational Plan performance measurement data, with analysis of achievements and actions that are behind target detailed in each of the community themes.

The attachment provides the full 2017-2018 Operational Plan Progress Report, which includes a comprehensive listing of each individual action, performance measure, target and commentary on progress.

Meeting the targets and performance measures in the annual Operational Plan contributes to the overall achievement of the objectives outlined in the 2017-2021 four year Delivery Program. The legislated requirement to report against the Delivery Program occurs on a six-monthly basis. That report is next scheduled to be tabled at the Ordinary Meeting of Council in March 2018. This will be the first six monthly report on the adopted 2017-2021 Delivery Program.

Capital works projects are incorporated into the body of the Operational Plan and as such are reported on as individual actions with performance measured against the adopted project plan. A number of projects may have design and construction elements and therefore can span across multiple years, these projects are identified as multi-year projects.

Discussion

(a) Overview

2017-2018 Operational Plan - Quarterly Progress Report as at 31 December 2017

The 2017-2018 Operational Plan contains 252 actions with the total number of performance measures being 320.

As at 31 December 2017, 92% of Operational Plan actions are on target for delivery. Currently, 27 Operational Plan actions are reported as behind, representing 8% of overall actions. The table below provides a summary of the total number of performance measures and the status by Community Theme.

2017-2018 Operational Plan summary of performance measures by theme
Community Theme	Total	On target	Achieved	Behind	Overall delivery
Leadership & Governance	80	70	7	3	96%
Your Community	69	61	4	4	94%
Your Business & Industry	24	22	1	1	96%
Natural & Built Environment	147	115	13	19	87%
Total	320	268	25	27	92%

The table below is comparative data of historical Operational Plan performance and provides information outlining year on year progress against the current 2017-2018 Operational Plan.

Comparative review of Operational Plan Performance Measures
	Total			On target /achieved			Behind			Overall delivery Percentage (%)
	15/16	16/17	17/18	15/16	16/17	17/18	15/16	16/17	17/18	15/16	16/17	17/18
1Q - July - Sept	468	320	318	410	281	301	58	39	17	87%	88%	95%
2Q - Oct - Dec	468	320	320	391	297	293	77	23	27	84%	93%	92%
3Q - Jan - Mar	468	320		381	280		87	40		81%	88%
4Q - Apr - Jun	468	320		384	294		84	26		82%	92%
Total	468	320		384	294		84	26		82%	92%

(b) Detailed Analysis by Community Theme and Service

Included below is a summary of highlights and information of those measures reported as behind according to each Community Theme and service within the Operational Plan.

Community Theme: Leadership and Governance
2017/18	Total	On target	Achieved	Behind
1Q - July – Sept 2017	80	75	2	3
2Q - Oct – Dec 2017	80	70	7	3

SUMMARY OF HIGHLIGHTS BY SERVICE

Digital Technology

· Renewal of Council’s technology infrastructure to provide secure and responsive information communication technology is in progress

Community Place and Customer Interactions

· Over 53,600 calls received through the customer call centre. 78% of calls answered within the set service standard exceeding the target of 75%

· 92% of initial customer interactions were dealt with at the first point of contact

· Over 54,200 counter enquires were processed and over 14,600 e-mails were handled

· Community members were involved in a variety of community engagement activities. Projects included Lake Rd upgrade, the Boom Reserve off-leash dog park, Lake Cathie Foreshore and Kew Main St Master Plans.

· Registered users on the "Have your Say" online portal as at 31 December 2017 was 3,317. An increase from 3,127 users as at 30 June 2017.

Communications

· Over 500 Media releases, statements, alerts and announcements were issued during July – December 2017

· Over 365,100 people visited the corporate website

· Facebook likes increased from 6,475 as to 30 June 2017 to 7,346 as at 31 December 2017 extending Council’s reach using digital channels

· A range of communication tools were used to keep the community up to date with council activities including use of consistent media channels such as social media, newspaper advertising, Weekly Mayoral messages and weekly radio interviews

Governance

· The Ordinary Council Meeting in October was held in Laurieton as part of the Take the Council to the Community Program

· The Engaging and Communicating with the Community Program saw a meeting held in October at Bonny Hills

· The annual GIPA report was submitted in line with required timeframes

· The annual Disclosure of Interests returns where presented to the Ordinary Council Meeting in November 2017

· Review of the payment of expenses and provisions of facilities for Councillors policy was competed

· The annual report for Public Interest Disclosures was submitted as required

· Implementation of the Procurement Strategy action items is progressing

· Ongoing conversation were held with other levels of government included meetings with State and Federal members and participation in Mid North Coast Regional Organisations of Councils (MIDROC)

Financial Services

· Financial statements lodged with the Office of Local Government

· Investment reports tabled in accordance with required timelines

· Financial reports tabled in accordance with required timelines

· Development and preparation of the annual operational budget is underway

Commercial Business Units - Glasshouse, Airport, and Property and Leasing

· 12 performing arts events held and nine visual arts events presented at the Glasshouse for the July to December 2017 period

· The Glasshouse biannual report was presented to the August 2017 Ordinary Council meeting

· 155 commercial leases and 70 community leases are current and operating

Asset Management

· The Property Investment Policy was adopted at the Ordinary Council Meeting held in December 2017

Human Resource Management

· Implementation of Workforce Management Strategy action items is ongoing

· The review of Work, Health and Safety Strategy is currently under underway

· Implementation of staff survey actions from the Employee Engagement Survey ongoing

· Improvements as a result of the Employee Engagement Program will be implemented in the first half of 2018

· Business improvement initiatives from Phase 3 of the Service Review Project in progress

· The 2016-2017 Annual Report was presented to the Ordinary Council Meeting in November in line with required timeframes

· The 2016-2017 Annual Community Report Card was produced

Operational Plan actions reported as behind

Community Theme 1 – Leadership and Governance

Operational Plan Activity 2017 - 18	Lead Responsibility	Success Measures	Target	YTD Actual	Comment on Progress
1.3.3.5 Align corporate Risk Management Framework to ISO 3100 standards	Governance and Procurement	Complete Risk Management Framework alignment in line with project milestones	100%	50%	Behind schedule. More stakeholder engagement has been completed to support implementation.
1.3.4.5 CW 17/18 Works Depot relocation - preconstruction/design (multi-year project)	Assets and Property Investment	Deliver project according to approved project plan (Works Depot relocation)	100%	75%	Behind schedule. Project brief and operational requirements currently under review.
1.5.3.1 Increase operating revenue at the airport, the Glasshouse and the Environmental Laboratory	Commercial Business Units	Increase operating revenue by 3% per annum per business unit	3%	0.2%	Behind target. Revenue up 0.2% on corresponding period in 2016-17.

Community Theme: Your Community
2017/18	Total	On target	Achieved	Behind
1Q - July – Sept 2017	69	68	0	1
2Q - Oct – Dec 2017	69	61	4	4

SUMMARY OF HIGHLIGHTS BY SERVICE

Commercial Business Units – Environmental Laboratory

· Sampling, analysis and reporting of operational and regulatory requests at the Laboratory were completed within the set service standards

· National Association of Testing Authority corporate accreditation maintained

Sports and Recreation

· Lifeguard Services provided at Town, Flynns, Lighthouse, Lake Cathie, Rainbow and North Haven beaches

· The lifeguard education program has reached over 3,600 students with over 54 presentations undertaken

· Implementation of the identified actions from the Recreation Action Plan is ongoing

· Regional Master Planning for recreational facilities has commenced, with the Lake Cathie Foreshore Master Plan on exhibition. Flynns Beach Master Plan community engagement scheduled to commence in February 2018.

· Community engagement underway for the Leash Free Dog facility in Port Macquarie.

· Stage 1 community engagement conducted for PMQ swimming pool. Further community engagement will continue into 2018 to inform the design of the strategic concept plan and site selection

· The Playground equipment replacement program is underway with Laura Place, Laurieton Oval and Long Flat playgrounds planned to start construction in March. Lasiandra and Foreshore Reserve starting April, River Street, Sancrox and Pioneer Park starting May/June

· The Recreational walkway replacement program underway with the pathway at Binbilla Reserve Bonny Hills complete and Flagstaff walkway renewal designs underway

· Town Green improvements complete

· Town Square construction complete

· The Port Macquarie Coastal Walk Master Plan was adopted by Council

· The Hastings Regional Sporting Facility has pre-construction works progressing to schedule

· Works progressing on Mrs Yorks Garden - Woodland Walk

· Lake Cathie Accessible Fishing Platform complete

Compliance

· 231 pool inspections have been undertaken for the July to December period

· 517 risk based audit inspections relating to on-site sewage were undertaken for the July to December period

· 138 inspections relating to development approvals and building, environmental, public health and on-site sewage standards were undertaken for the July to December period

· 23 fire safety inspections were undertaken for the July to December period

Community Place

· The Youth Advisory Committee involved in Youth Week planning

· Implementation of identified actions from the Aboriginal Awareness and Understanding Strategy ongoing

· Round 1 of the Community Grants Program complete with Round 2 to open in February

· Implementation of the Disability Inclusion Action Plan ongoing

· The review of the Cultural Plan is currently underway

· Library membership up from 32,167 (July) to 33,339 (December 2017).

· Graffiti Blasters Program ongoing with additional work conducted in Bonny Hills in December

· A number of key events have been held across the region including Moonlight Movie events in Bonny Hills and Wauchope, the School Holiday Program at local Libraries, Author Talk at the Library and installation of the Pappinbarra Playground project, Waves and Melodies at Town Beach and Rainbow Rhythms at Bonny Hills

· The Volunteer Program has seen work undertaken with key volunteer groups for Beach to Beach, Schools to school and the Lions Club

· Lake Cathie accessible fishing platform complete

Operational Plan actions reported as behind

Community Theme: Your Community

Operational Plan Activity 2017 - 18	Lead Responsibility	Success Measures	Target	YTD Actual	Comment on Progress
2.3.3.07 Innes Peninsula (Brierley Hill) — design and develop new local park	Recreation and Buildings	Deliver project according to approved project plan	100%	0%	Behind schedule. This project will not commence until 2018-2019 due to reprioritisation of works programme items.
2.3.4.03 Wayne Richards Park — Stage 3B detailed design and approvals	Recreation and Buildings (Infrastructure Delivery)	Deliver project according to approved project plan	100%	50%	Behind schedule. This project depends on relocation of existing works depot.
2.3.4.06 CW 17/18 Flynn's Beach — upgrade sea wall (multi-year project)	Recreation and Buildings (Infrastructure Delivery)	Deliver project according to approved project plan	100%	50%	Behind schedule. Project pre planning finalised for Design and Construction tender. Tender for Design and Construction advertised mid Nov 2017. Target tender award early 2018.
2.3.4.07 CW 17/18 Googik Track - construct shared walkway/ cycleway, Stage 2 (multi-year project)	Recreation and Buildings (Infrastructure Delivery)	Deliver project according to approved project plan	100%	50%	Behind schedule. Project pending National Parks Wildlife Services advice re next steps/preferred route.

Community Theme: Your Business and Industry
2017/18	Total	On target	Achieved	Behind
1Q - July – Sept 2017	24	24	0	0
1Q - Oct – Dec 2017	24	22	1	1

SUMMARY OF HIGHLIGHTS BY SERVICE

Economic Development

· Implementation of the Economic Development Strategy is ongoing with a report on implementation presented to Council in November 2017

· The annual business confidence survey was undertaken in August with results indicating that local business conditions are stable and expected to improve further

· Implementation of actions within the Major Events Strategic action plan are underway, with distribution of the Event Sponsorship funding finalised and reported to the October Council Meeting

· Implementation of actions within the Destination Management Plan are underway

· New monthly visits to the destination website increased by 19.59% exceeding the set target of 15%

· Ongoing meetings attended on a monthly basis with Camden Haven, Port Macquarie and Wauchope Chamber of Commerce to support initiatives

· Meetings attended with the Business Hub to support local business networks

· Implementation of actions from the Digital Strategy is ongoing

Port Macquarie Airport

· Port Macquarie Airport Terminal upgrade has progressed to the detailed design phase of the project

· Over 115,500 passengers have been recorded for the Airport with over 408 aircraft movements recorded

Operational Plan actions reported as behind

Community Theme: Your Business and Industry

Operational Plan Activity 2017 - 18

Lead

Responsibility

Success Measures

Target

YTD Actual

Comment on Progress

3.1.2.1

Prepare Local Environmental Plan (LEP) and Development Control Plan (DCP) amendments in relation to a business park near Port Macquarie Airport

Strategic Landuse Planning

Report to Council regarding adoption of LEP and DCP amendments by 31 Dec 2017

100%

60%

Behind schedule. Draft Council report completed pending biodiversity certification for Council Airport lands.

Community Theme: Natural and Built Environment
2017/18	Total	On target	Achieved	Behind
1Q - July – Sept 2017	145	128	4	13
1Q – Oct – Dec 2017	147	115	13	19

SUMMARY OF HIGHLIGHTS BY SERVICE

Water Supply

· Water and sewer trunk mains from North Haven to Laurieton and the Stingray Creek Bridge crossing is complete

· Over 390 new water supply services have been installed to residential and business properties to cater for new development during July to December

· Concept designs for construction of Granite Street Reservoir are being finalised and will be ready for tender in February/March 2018

· The first stage of construction of the reclaimed water trunk main at Area 14 is nearing completion

· Land acquisition and concept designs are currently being finalised for the Thrumster reclaimed water reservoir project

· Designs are nearing completion for Beechwood Rosewood Reservoir

· Maintaining and operating storage dams has been undertaken in accordance with Australian National Committee On Large Dam guidelines

Sewerage

· Designs are underway for the Port Macquarie Sewer Pump Station 71

· The upgrade of the Port Macquarie Reclaimed Water Treatment Plant is ongoing

· The sewerage upgrade at Area 15 for Lakewood/Kew is complete

· New sewer main connections at Stingray Creek Bridge is complete

· Dunbogan Sewerage Treatment Plant sewer rising main extensions have designs underway

· Programmed replacement and maintenance of sewerage assets including, sewer pumps, electrical switchboards, membrane replacement, odour control installations, minor extensions and pipelines are ongoing

· Operating and maintaining sewerage treatment plants in accordance with environmental licences, adopted maintenance programs and safety requirements is on target

Stormwater and Drainage

· Designs are underway for stormwater drainage at Lake and Jindalee Road Port Macquarie

· Designs are underway for stormwater drainage at Gordon and Owen Street Port Macquarie

· Piped drainage – Stage 1 works at Batar Creek Road and Laurel Street Kendall has commenced

· Stormwater detention facility at Black Swan Terrace has initial concept plans received with review undertaken and is pending concept plan amendments

· Stormwater remediation works at Calwalla Crescent has project planning ongoing

· Settlement Shores and Broadwater canal maintenance are ongoing

Roads, Bridges and Transports

· North South Link Road has Stage 3 (final stage) of the project underway

· Footpath construction has been completed at Sherwood Road and Park Street Port Macquarie and Bain Street Wauchope

· Bulli Creek Bridge replacement on Comboyne Road has construction planning finalised with bridgework commenced

· Hartys Creek on Comboyne Road is expected to commence in April 2018

· Preconstruction works for the duplication of Greenmeadows Drive south to Matthew Flinders Drive has designs complete

· Beechwood Road (segments 20,40 and 50) preconstruction upgrades had the design contract awarded at the December Ordinary Council Meeting

· Lake Road upgrade to widen the westbound carriageway between Toorak Court and Oxley Highway has construction commenced

· Hastings River Drive – Newport Island Road roundabout has construction planning ongoing

· Houston Mitchell Drive construction of Stages 2 and 3 complete

· Upgrade to Ocean Drive from Mountain View Road to Fairwinds Avenue is nearing completion

· Pedestrian amenity improvements – Kew to Laurieton along Ocean Drive and Bold Street has preconstruction planning underway

· Structural repairs for Kindee Bridge has Stage 1 complete and Stage 2 planned for early 2018

· Hyndmans Creek Bridge replacement on Comboyne Road is complete

· Albert Street single lane timber bridge replacement has the construction tender awarded with construction planned for early 2018

· O’Neills Bridge - Batar Creek Road replacement has construction design and construction tender awarded

· Shared path between Miala Street and Lake Cathie Medical Centre at Ocean Drive is complete

· Dual carriageway upgrades to Gordon and Horton Street to Lake Road has construction complete. Project was extended to include upgrades to Hay and Hayward Streets

· Pedestrian crossing at Bold Street Laurieton has detailed design underway

· The broad analysis of priorities for sealing of unsealed roads has discussions ongoing for program development

· The annual unsealed road maintenance program, sealed road maintenance program and bridges and culverts maintenance program are all on target and ongoing

· The report on the Area Wide Traffic Study is currently under review

· The 2017-2018 Road reseal and rehabilitation projects have focused on the following locations:

Road rehabilitation

o Glen Haven Dr, Lakewood

o Captain Cook Bicentennial, Laurieton

o Diamond Head Rd, Dunbogan

o Ocean Drive, Lakewood

o King Creek Rd, Wauchope

o Sarahs Cres, Wauchope (final seal to be applied)

o Stoney Creek Rd, Wauchope

o Redbank Rd, Wauchope (final seal to be applied)

o Pembrooke Rd, Pembrooke

o Beechwood Rd, Beechwood

o Blackbutt Rd, Port Macquarie

o Hill St (Lake Rd to Lord St), Port Macquarie

o Rollands Plains Rd, Rollands Plains

o Beechwood Rd (Oxley Hwy), Wauchope

o Houston Mitchell Dr, Lake Innes

o Wauchope Local Streets (Nelson, Parker, Campbell, Waugh, Young, Mackay, Johnstone, Cowdery, Webb)

Reseal Programme

o West Haven/Lakewood, Asphalt Rejuvenation

o Rocks Ferry Area, Wauchope, Bitumen Reseal

o Riverbreeze Area, Wauchope, Asphalt Rejuvenation

o Redbank Rd, Wauchope, Bitumen Reseal

o Stoney Creek Rd, Wauchope, Bitumen Reseal

o Old King Creek, Wauchope (if funds permit)

Strategic Land Use Planning

· The Urban Growth Management Strategy public exhibition period is complete and will be provided to Council for review

· Review of the Port Macquarie-Hastings Local Environmental Plan 2011 is ongoing

· Review of the Port Macquarie-Hastings Development Control Plan 2013 is ongoing

· Draft Koala Plan of Management adopted at the Ordinary Council Meeting in December 2017

Natural Resource Management

· Maintenance programs for bushfire mitigation works on Council land is ongoing in accordance with the Bushfire Risk Management Plan

· Over 540ha of land have been treated for invasive weeds and over 600kms of weed dispersal routes treated as part of the Weed Management Program

· Feral animal control has been undertaken on Council-controlled land at Kingfisher Tip, North Shore, Christmas Bells and North Haven and Port Water catchment supply area

· Ongoing education of residents, industry and community group on Council’s tree management requirements with the Port Macquarie-Hastings 2013 tree management Development Control Plan is ongoing

· Over 900 customer requests relating to tree matters have been handled during July to December 2017, including those relating to public, private and illegal tree works

· Tree maintenance works including pruning or removal of high-risk trees has been undertaken as scheduled. Current status of total work is:
804 trees listed for works
Very High Risk (Priority 1) – 18,
High Risk (Priority 2) – 290,
Moderate/Low Risk (Priority 3-6) – 496

· Delivering Bushfire preparedness and planning programs to the community is ongoing

· The draft Biodiversity Strategy is planned to be placed on public exhibition in January/February 2018 after being adopted to the Ordinary Council Meeting in December 2017

Asset and Property Investment

· Four potential sites have been identified as suitable for future mid-scale solar projects and included in the Long Term Energy Strategy that was adopted at the Ordinary Council Meeting in October 2017

· Feasibility assessment completed for bulk street lighting upgrade to LED. The recommendation to proceed was adopted at the August 2017 Ordinary Council Meeting

Building Maintenance

· Installation of solar energy system at the Laurieton Council Office and Library in Laurieton is progressing

· LED lighting upgrades for the Port Macquarie-Hastings Council office building is ongoing

Development Assessment

· Over 950 Development Applications, s96 Modifications, Construction Certificates and Complying Development Certificates were determined within agreed processing times for the July to December 2017 period

Operational Plan actions behind

Community Theme – Your Natural and Build Environment

Operational Plan Activity 2017 - 18	Lead Responsibility	Success Measures	Target	YTD Actual	Comment on Progress
4.1.1.11 CW 17/18 Koree Island HV incoming electrical upgrade (33KV)	Water and Sewer	Deliver project according to approved project plan	100%	50%	Behind schedule. Designs delayed due to more rigorous design requirements from Essential Energy (earthing and easement plan). Designs to be reviewed and resubmitted for approval.
4.1.3.03 CW 17/18 Small towns sewerage program - provision of centralised sewerage systems for Comboyne (multi-year project)	Water and Sewer	Deliver project according to approved project plan	100%	50%	Behind schedule. Review of environ-mental factors and tender documentation are underway and experiencing delays due to the complexity of environmental considerations.
4.1.3.04 CW 17/18 Small towns sewerage program - provision of centralised sewerage systems for Long Flat (multi-year project)	Water and Sewer	Deliver project according to approved project plan	100%	50%	Behind schedule. Review of environ-mental factors and tender documentation are underway and experiencing delays due to the complexity of environmental considerations.
4.1.3.05 CW 17/18 Small towns sewerage program - provision of centralised sewerage systems for Telegraph Point (multi-year project)	Water and Sewer	Deliver project according to approved project plan	100%	50%	Behind schedule. Review of environ-mental factors and tender document-tation are underway and experiencing delays due to the complexity of environmental considerations.
4.1.3.07 Thrumster (Area 13) Sewerage Treatment Plant - environmental impact and concept study	Water and Sewer	Deliver project according to approved project plan	100%	25%	Behind schedule. Project plan currently under development. Concept design and environmental impact statement review proposed to be undertaken as part of the initial works.
4.1.3.10 Camden Haven upgrade and upsize of mains and pump stations	Water and Sewer	Deliver project according to approved project plan	100%	75%	Behind schedule. Sewer pump station upgrade complete. Mains upgrade ongoing and in accordance with approved budget. Design complete. Revised review of environmental factors to be submitted in January 2018. Construction work to be incorp-orated into rising main extension to Camden Haven Sewer Treatment Plant when these designs complete (due Feb 18).
4.1.5.03 Continue stormwater remediation - flood remediation Blackbutt Creek, Wauchope	Transport and Stormwater Network	Deliver project according to approved project plan	100%	60%	Behind schedule. Project continued from 2014/15 FY. Detailed design completed. Property acquisition matters have significantly delayed works commencement, however acquisition is being finalised at present. Project works to be programmed following finalisation of acquisition.
4.1.7.1 CW 17/18 Kingfisher Waste Depot -Commence construction for expansion (upgrade and expansion) - (multi-year project)	Environ-mental Services, (Infrastruct-ure Delivery)	Deliver project according to approved project plan	100%	50%	Behind schedule. Detailed design commenced, however, construction expected in 2018-2019.
4.2.1.2 Continue to implement Floodplain Risk Management, Coastal and Estuary Management Plans	Environ-mental Services	Deliver project according to approved project plan	100%	0%	Behind target. Awaiting Business Case approval. Briefing scheduled for March/April 2018.
4.2.2.1 Continue to undertake the landfill gas capture trial project at Cairncross Landfill	Environ-mental Services	Deliver project according to approved project plan	100%	50%	Behind schedule. Initial testing at the site shows poor results. Further action required to determine future progress with this project - future meeting (Feb) set up to examine gas bore requirements.
4.2.2.2 Update the flood policy to include revised flood levels for the Hastings River as a result of Climate Change methodology	Environ-mental Services	Flood Policy updated	100%	0%	Behind target. Awaiting councillor briefing on climate change impacts to flood levels. Scheduled for 4 April 2018
4.4.1.09 Hastings River Drive - Aston Street crossing (multi-year project)	Transport and Stormwater Network, (Infrastruct-ure Delivery)	Deliver project according to approved project plan	100%	50%	Behind schedule. Project scope pending confirmation.
4.4.1.21 CW 17/18 Dunbogan Bridge - Reid Street - undertake substructure rehabilitation (multi-year project)	Transport and Stormwater Network, (Infrastruct-ure Delivery)	Deliver project according to approved project plan	100%	0%	Behind schedule. Project has been delayed due to the resignation of the Bridges and Structures Engineer. Engineering Planning Manager Transport and Stormwater Network working with Director to source external resources. Report presented and adopted at the November Ordinary Council Meeting.
4.4.1.23 CW 17/18 Roads Maritime Service Grants (RMS) - Safety Program and Active Transport Program	Transport and Stormwater Network	Deliver project according to approved project plan	100%	80%	Behind target. Roads and Maritime Services projects with funding clarifications have now commenced. Transport for NSW gave final project allocations for the Wauchope Main Street and Beach to Beach projects in December and RMS are aware of the revised time lines. Some of the Beach to beach project will remain on hold until a temporary Project Engineer can be employed.
4.4.1.30 Undertake review of the Parking Strategy	Transport and Stormwater Network	Complete Parking Strategy review	100%	50%	Behind schedule. Project planning on hold pending resource. Recruitment for Temporary Project Engineer underway.
4.5.1.3 Preparation of Local Environmental Plan (LEP) and Development Control Plan (DCP) amendments for the South Lindfield urban release area	Strategic Landuse Planning	Report recommended planning outcomes to Council, post exhibition, by 31 Dec 2017	100%	90%	Behind target. Public exhibition concluded. Issues raised would lead to changes requiring re-exhibition. Re-exhibition commenced, and will enable submission of report to first meeting of Council in 2018.
4.5.2.1 Review the Development Contributions Plans	Strategic Landuse Planning	Report to Council regarding adoption of Open Space Contributions Plan by 31 March 2018	100%	90%	Behind schedule. Project is now delayed by availability of slots in the Councillor Briefing schedule. Draft plan is now scheduled for Councillor Briefing 31 January, with a view to consideration at February Council meeting, followed by public exhibition in March-April 2018 and will not meet the performance indicator target.
4.6.1.6 Inform and educate residents, industry and community groups about Council’s tree management requirements within the Port Macquarie-Hastings 2013 Development Control Plan (DCP)	Recreation and Buildings	Provide advice in accordance with service standards and industry best practice	100%	83%	Behind target. Total CRM's 910 including 729 public tree issues, 150 private tree issues and 31 illegal tree works. Additional information: 266 enquires (158 public and 80 private phone and email enquires). This does not include calls transferred from call centre to staff. In addition, there were 67 internal enquiries.
4.8.1.5 Operate the sewerage network to ensure service delivery meets public health and safety requirements	Water and Sewer	Have nil reportable incidents relating to the operation of the sewerage network	0#	2#	Behind target. There were two reportable incidents during December. One in Dunbogan, as a result of an unexpected premature pipe failure and the other at Bonny Hills as a result of a wet weather event.

Options

Seek further information on performance measures reflected in this report.

Community Engagement & Internal Consultation

The information contained in this report has been subject to consultation with the Executive Team, Senior Leadership Team, Integrated Planning and Reporting Development Officer and Council Staff.

Planning & Policy Implications

This report is consistent and aligned with the Integrated Planning and Reporting Framework provisions contained in the Local Government Act (1993).

Financial & Economic Implications

The Quarterly Budget Review Statements are tabled separately and reflects the financial implications against the Operational Plan.

Do not delete this line

Attachments

1 View. 2017-2018 Operational Plan Quarterly Progress Report as at 31 December 2017

AGENDA Ordinary Council

21/02/2018

Item: 09.14

Subject: Glasshouse Biannual Report and Update on Strategic Plan Recommendations

Presented by: Corporate Performance, Rebecca Olsen

Alignment with Delivery Program

1.5.3 Develop, manage and maintain Council Business Units through effective commercial management.

RECOMMENDATION

That Council note the information provided in the Glasshouse Biannual Report and Update on Strategic Plan Recommendations report.

Executive Summary

This report provides details of the Glasshouse finances for the 2017-18 financial year as at 31 December 2017, including the updated status of Glasshouse loan balances, and provides an update on progress achieved against the Recommendations identified in the Glasshouse Strategic Plan 2014 - 2017.

Discussion

Background

At the Ordinary Council Meeting held on 15 February 2017, Council resolved to replace quarterly Glasshouse reporting to Council with six monthly reporting in February and August each year detailing key performance measures and financial information for the previous financial year period:

09.14 REVIEW OF SELECT COUNCIL COMMITTEES

Mr Malcolm Merrick, representing the Port Macquarie Tacking Point Lions Club Inc., addressed Council in support of the recommendation and answered questions from Councillors.

RESOLVED: Turner/Cusato

1. Establish a new Steering Group called the ‘Cultural Steering Group’.

2. Adopt the Cultural Steering Group Charter as included in this Review of Select Council Committees report.

3. Seek Expressions of Interest (EOI) for members of the Cultural Steering Group, with the results of the EOI to be reported to the 19 April 2017 Ordinary Meeting of Council.

4. Work with members of the following existing Council Committees to transition them into working groups with objectives, actions and reporting lines to the Cultural Steering Group:

a) Port Macquarie-Handa Sister City Sub-committee.

b) Australia Day Sub-committee.

c) Port Macquarie-Hastings Youth Advisory Committee.

5. Work with Heritage, Arts and Cultural Priorities Advisory Group to transition it into the Cultural Steering Group.

6. Replace quarterly Glasshouse reporting to Council with six monthly reporting in February and August each year detailing key performance measures and financial information for the previous financial year period.

CARRIED: 7/2

FOR: Besseling, Alley, Cusato, Dixon, Intemann, Levido and Turner

AGAINST: Griffiths and Hawkins

Accordingly, this report provides details of the Glasshouse finances for the 2017-18 financial year as at 31 December 2017, including the updated status of Glasshouse loan balances, and provides an update on progress achieved against the Recommendations identified in the Glasshouse Strategic Plan 2014 - 2017.

Glasshouse Finances

The December review and attached report present the financial performance of the Glasshouse Venue for the second quarter of the 2017 - 2018 financial year (1 October 2017 to 31 December 2017) and the financial year to date (1 July 2017 to 31 December 2017).

The commentary in this report refers to the operating deficit/shortfall (before interest and depreciation). The attached quarterly Financial Statement also shows the operating deficit/shortfall after interest and depreciation. Over time, loan interest expense will decrease as loans are repaid. Depreciation is subject to revaluations. These expense items may distort the overall result when comparing with the previous financial year period hence why the commentary refers to the operating result before interest and depreciation.

The operating deficit for the financial year to date (before interest and depreciation) is a deficit/shortfall of $1,188,857 against a budget of $1,154,174, hence tracking approximately $35k or 3% over budget. Actual results for the same period in the prior year (1 July 2016 to 31 December 2016) was an operating deficit/shortfall of $1,198,551. Hence the Glasshouse operating position has improved by $9,694 when compared to the same period 12 months ago.

It should be noted that being a venue, income patterns can be subject to market forces, availability (and timing) of product in the market-place and seasonality. Commercial venue hire is 15% up on the same period last year highlighting improved performance in attracting commercial hire to the venue. Operating income overall is up around 11% on the same period last year. Operating costs are tracking around 4% up on the same period last year.

This operating deficit (before interest & depreciation) can also be represented as follows:

Glasshouse Operating Deficit by Activity - Year to Date 31 December 2017:

	Management	Back of House	Front of House	Community	Commercial	Cultural	Total
Operating Income	-	-	-	1,544	786,834	93,873	882,249
Operating Expenditure (Before Council Overheads)	106,774	508,023	270,582	44,041	466,084	438,772	1,834,277
Council Overheads	54,471	18,946	40,261	11,841	28,419	82,890	236,829
Net Operating Surplus (Deficit)	(161,245)	(526,969)	(310,843)	(54,338)	292,331	(427,789)	(1,188,857)

Management, Back of House and Front of House provide internal support functions for Community, Commercial and Cultural activities. Community and Cultural functions also hire space from the Commercial function to derive actual costs of delivering community and cultural functions within the Glasshouse overall function. When the costs of these internal support functions are distributed, the operating surplus (deficit) can be represented as follows:

Glasshouse Operating Deficit by Activity (after internal adjustments) - Year to Date 31 December 2017:

	Management	Back of House	Front of House	Community	Commercial	Cultural	Total
Net Operating Deficit (from the above table)	(161,245)	(526,969)	(310,843)	(54,338)	292,331	(427,789)	(1,188,857)
Internal Overhead Distribution	161,245	526,969	310,843	(388,577)	70,033	(680,513)	-
Net Operating Surplus (Deficit) (after internal adjustments and transfers)	-	-	-	(442,915)	362,364	(1,108,302)	(1,188,857)

Glasshouse Loan Balances

Loan borrowings assisted in the funding of the Glasshouse at the time of construction. Of the total cost, $27,975,954 was sourced through loan borrowings that are repaid through Council general revenue. It should be noted that there was also $10,873,801 sourced through loan borrowings that are paid from the S94 restricted asset for community facilities. Councils often use borrowing as a way to fund additional infrastructure whilst maintaining intergenerational equity outcomes.

The outstanding balance of the borrowings that are repaid through general revenue, as at 31 December 2017, is $14,714,617. This demonstrates that over $13.25 million has already been repaid, with loans expected to be repaid by 2027.

Glasshouse Strategic Plan Recommendations

The Glasshouse Strategic Plan 2014 - 2017 was adopted by Council at the Ordinary Council Meeting held on 16 July 2014 to provide a greater commercial focus in the operation of the venue across four key outcome areas: ensuring good governance; developing successful partnerships; enhancing utilisation and visitation; and promoting viability.

Significant progress has been achieved since July 2014 with regard to the implementation of the strategic direction outlined in the Plan. This progress is summarised in the attached Update on Glasshouse Strategic Plan Recommendations - February 2018 with some specific outcomes discussed below.

It is noted that the recommendations and corresponding actions arising from the Strategic Plan have now been completed and/or are continuing to guide day-to-day operations as part of “business as usual” activities.

Council’s Operational Plan 2017 – 2018 includes an action to review and update the Glasshouse Strategic Plan (OP 1.5.3.2). At the Ordinary Council Meeting held on 16 August 2017, Council resolved as below:

09.15 GLASSHOUSE END OF FINANCIAL YEAR REPORT AND UPDATE ON STRATEGIC PLAN RECOMMENDATIONS

RESOLVED: Turner/Hawkins

That Council:

1. Note the information provided in the Glasshouse End of Financial Year Report and Update on Strategic Plan Recommendations Report.

2. Note that the Glasshouse Strategic Plan will not be current past 2017.

3. Request the Cultural Steering Group provide recommendations to Council for the renewal of the Glasshouse Strategic Plan and associated KPI's as part of its review of Council's Cultural Plan.

CARRIED: 9/0

FOR: Alley, Cusato, Dixon, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner

AGAINST: Nil

Further to Resolution 3 above, Council’s Cultural Steering Group is continuing to review the Cultural Plan. Once the Cultural Plan is available, the Plan will be reviewed to ensure that the ongoing strategic / business direction of the Glasshouse remains consistent with Council’s broader Cultural Plan aspirations.

1.2 Review management and reporting systems to support effective decision-making

The following table includes the following Key Performance Indicator (KPI) data associated with Glasshouse utilisation and occupancy rates (noting that the results are reported to 31 December 2017):

Performance Indicator	2016-17 Actual	2016-17 Actual	2017-18 Actual	2017-18 Target
Key Outcome 3: Enhancing Utilisation and Visitation Implement targeted marketing and sales strategies to enhance utilisation, increase event visitation and maximise commercial outcomes		*Jul-Dec*	*Jul-Dec*
Visitation (Glasshouse)	255,521	131,639	140,825	> 255,000
Visitation (Gallery)	54,617	26,182	24,541	> 55,000
Visitation (website)	135,905	64,427	82,287	> 135,000
Utilisation (%) (theatre)	42%	47%	53%	> 40%
Utilisation (%) (studio)	26%	27%	37%	> 35%
Utilisation (%) (meeting rooms)	47%	45%	54%	> 40%
Average attendance (%) (theatre)	68%	66%	74%	> 70%
Average attendance (%) (studio)	79%	75%	65%	> 70%
Number of tickets processed	66,353	36,644	38,455	> 65,000
Percentage of tickets sold online	27%	27%	35%	> 30%

The July - December KPI results represent very positive figures for the period and show continuing growth in utilisation and visitation compared to the corresponding period in 2016-17, noting that results can fluctuate year to year depending on the timing of particular events and the type and composition of venue hire.

2.1 Identify and develop key partnerships to maximise cultural, community and commercial outcomes

At the end of the 2017 Membership Season (30 November), there were 1,344 Glasshouse Members - this represents a further increase of 69 members over the number of members at 30 November 2016. This level of membership far exceeds the patron participation results achieved by other similar NSW venues.

As at 31 January 2018 there were already 924 Glasshouse Members registered for the 2018 Season.

The 2018 “Forever Glasshouse” Season was officially launched on Thursday 1 February, marking the 10^th Performing Arts Season at the Glasshouse. The theme “Forever Glasshouse” is a reflection on how over time the Glasshouse has become an integral part of our community. The Launch was very successful presenting the 2018 Season to a full house of Glasshouse Members and guests.

Council is continuing to support and develop a number of corporate partnerships / sponsorships consistent with the Glasshouse Marketing and Sales Plan, including the Glasshouse Founding Sponsors, Arts NSW and a number of regional / local media organisations.

In 2018, the Glasshouse team has secured WIN Network as the inaugural Glasshouse Performing Arts Season Principal Sponsor, along with Angove Family Winemakers as Supporting partner and the Conservatorium Mid North Coast as a Presenting Partner (for Opera Australia).

Council is also continuing to provide support for a wide variety of community groups to access and use the Glasshouse facilities. The Conservatorium Mid North Coast Children’s Choir performed as part of this year’s Season Launch.

3.1 Promote operational flexibility in the use of the Glasshouse footprint to optimise cultural, community and commercial outcomes

This work is continuing on an ongoing basis, including school holiday activities such as the Neon Summer program. Neon Summer is a program of creative and cultural workshops and events run to drive engagement and visitation during the traditionally quieter December – January summer holiday period. The program has been run with $19,102 in grant funding support from the Australian Government Building Better Regions Fund, and has been highly successful with high gallery visitation and ticket sales at all Neon Summer events.

4.4 Continue to rationalise operating costs and overheads

Council has also been successful in being awarded $135k in grant funding support from the NSW State Government to upgrade the existing halogen theatre lights to energy efficient LED lighting. This project, to be implemented in 2018, will not only reduce annual operating costs but also enhance the technical quality of production services able to be offered by the Glasshouse to users of the theatre.

Other actions

Further detail is provided in the attached Update on Glasshouse Strategic Plan Recommendations - February 2018.

Options

This is an information report.

Community Engagement & Internal Consultation

The information provided in this report has been reviewed by Council staff.

Planning & Policy Implications

This report is consistent with the key outcomes, recommendations and governance and reporting arrangements identified in the adopted Glasshouse Strategic Plan 2014 - 2017.

Council’s Operational Plan 2017 – 2018 includes an action to review and update the Glasshouse Strategic Plan (OP 1.5.3.2).

Financial & Economic Implications

The Glasshouse Strategic Plan 2014 - 2017 aims to continue the significant progress that has been made in reducing the net cost of the operation of the Glasshouse to the community while continuing to ensure the delivery of high quality cultural, community and commercial activities.

Attachments

1 View. Glasshouse Financial Statement 31 December 2017

2 View. Update on Glasshouse Strategic Plan Recommendations February 2018

AGENDA Ordinary Council

21/02/2018

Item: 09.16

Subject: Digital Technology Project Status

Presented by: Corporate Performance, Rebecca Olsen

Alignment with Delivery Program

1.4.1 Provide efficient technology and inclusive digital systems that are easy to use and easy to access.

RECOMMENDATION

That Council note the information contained in the Digital Technology Project Status report.

Executive Summary

At the Ordinary Council Meeting held 16^th August 2017, Council resolved:

09.18 NOTICE OF MOTION – ICT STRATEGY

RESOLVED: Hawkins/Alley

That Council:

1. Request the General Manager provide a further update to the October 2017 meeting on the ongoing implementation of Council’s ICT Strategy, with a particular emphasis on the expected flow of efficiency benefits to Council’s operations in the remainder of the current term of this Council.

2. Noting that other new significant Council Strategies, such as the EDSG are updated six monthly, request the General Manager provide further updates on progress made and efficiencies gained at regular 6 monthly intervals in February and August of each calendar year until (and including) August 2020.

CARRIED: 9/0

FOR: Alley, Cusato, Dixon, Griffiths, Hawkins, Intemann, Levido, Pinson and Turner.

AGAINST: Nil

In line with Resolution 2 above, this report presents a progress report detailing the overview of the current draft roadmap (in development) for Council’s Digital Technology, over the period of 2018 to 2020, with a view to setting out the strategic direction and provide insights into delivery of operational projects from this roadmap.

This report also provides an update on existing projects based on Councils funded ICT Renewal program, which is nearing completion in April 2018.

Discussion

ICT Renewal

In preparation of the foundations required to deliver new ways of working to Council, our current ICT renewal program has been supported by a $4.3 million capital works investment over the past 18 months. This renewal has been focussed on improving the effectiveness of Councils technology in support of our operations, as well as delivering on our ability to provide resilience and day-to-day support/functional improvements for our organisation.

This renewal program now approaches completion, with current completed projects including:

· The delivery new service desk tools to improve IT support to the organisation

· Upgrades to Councils IT security and network firewalls

· Complete redesign of backup and restoration services for Council systems and data

· Upgrades to all servers, data storage and network devices across Council

· Introduction of disaster recovery solutions in order to meet Councils expectations of business continuity

· Internal support back to Councils core operating platforms, following the cancelation of a prior managed services agreement with Civica

· Delivered all new hardware, windows 10 and Microsoft productivity software upgrades to 420 staff.

· Introduced automated platforms for delivery of software upgrades, antivirus/security patching and future operating systems updates.

· Increased access to the internet for staff and service efficiency

· Commenced migration to the Cloud for commodity IT services

· Upgraded Councils core Financial, Assets and Property application to the latest version

· Commenced replacement of Councils 15 year old telephone system

The above renewal program is currently scheduled to be completed by late April 2018.

Overview – Draft Future Roadmap

While still in development, with further consultation underway to finalise, the digital technology roadmap for 2018-2020 aims to draw together the foundations of ICT infrastructure renewal that the Council has invested in, and has been delivered by the Digital Technology team over the past 18 months, with the future view towards new ways of working and supporting our Councils significant growth.

The draft roadmap focuses on setting the scene for better use of data and business intelligence for the organisation, and the transformational activity underway within the digital technology team and broader Council to review our internal & external customer interactions. Aligned to the emerging ideation and strategic thinking behind Port Macquarie-Hastings future city needs, and with a growing state of maturity in the technology space, the road map will aim to further deliver on the need to build or acquire the necessary technical platforms which support an informed, efficient and effective future city and organisation.

At this current stage, consultation has occurred with all divisions of Council and key stakeholders throughout 2017, and presented in draft to the executive team in December 2017. There is currently still significant consultation underway, to ensure the alignment of projects supports Councils current operational and strategic focus. In addition, work continues around consideration of resourcing required to effectively deliver the draft roadmap, with a view to embedding a new ‘digital’ workforce to maintain momentum and flow of benefits into the organisation following execution.

Following this further input via consultation with the senior leadership team in February, it is expected the draft roadmap will be approved by March, with delivery commencing at the start of the new financial year, FY18/19.

Contribution to the Future State

The draft digital technology roadmap will support Council into the future. In doing this, the draft roadmap looks to deliver technology investment towards:

(a) New ways of working

Objective:

Deliver automation, workflows and systems which integrate applications, releases productivity and enables efficiencies within the organisation.

2018-2019

·Establish a new digital team structure to support the transition and provide a way to sustain a move to new ways of working for the whole of Council.

· Commence scoping of work to implement new systems, such as HRIS, CRM, Office365 and Field Mobility which provide core platforms for future automation, workflow and customer service improvements.

2019-2020

· Implement new ways of working including new systems and functionality inside our core applications which allow us to realise organisational efficiencies and improved customer service.

· Deliver automation across business processes to release productivity and allow staff to add value back to core services.

(b) Digitisation and Insights

Objective:

Utilise information management and data to increase visibility and insight for Council operations, inform decision making and support service delivery.

2018-2019

· Deliver an open data program to enable data access, support digital economic strategies and increase operational transparency.

· Commence digital back scanning of high value records and historical data to improve time to search and access to information.

· Deliver a data warehouse in support of future business intelligence opportunities.

2019-2020

· Implement core digital customer transactions and processes to further improve the customer experience across digital platforms

· Deliver modern reporting and business intelligence platforms to aid in Council operational reporting and decision making.

(c) Support our growth

Objective:

Making better use of technologies and infrastructure so staff can do business more effectively, and deliver improved customer experiences.

2018-2019

· Finalise delivery a modern, high performance network across Council’s business operations.

· Implement improved wireless connectivity

· Deliver an enhanced communications platform, that integrates voice, video, IM and email.

· Migration of websites

· Upgrade uninterruptable power supplies to support resiliency of infrastructure.

2019-2020

· Review systems integration platforms to standardise toolsets and maintain a modern integration architecture

· Build an end user compute strategy and undertake a desktop asset replacement process via cloud based Desktop as a Service.

Community Engagement & Internal Consultation

Engagement with a range of Council business units has been undertaken over the delivery of outcomes to date. These include:

- General Managers Office

- Executive Management Team

- Group Managers

- Airport Staff

- Laboratory Staff

- Glasshouse Staff

- Crematorium Staff

- Operational Staff

- Finance, Corporate Services and Information Technology Portfolio.

Planning & Policy Implications

There are no planning and policy implications in relation to this report.

Financial & Economic Implications

There are no specific financial and economic implications in relation to this report. The current program is being delivered within existing allocated budgets and an allocation has been made within the 2017/2018 budget. An allocation has been made in the draft 2018/2019 budget for continued works and roadmap projects subject to finalisation of the roadmap.

Attachments

Nil

AGENDA Ordinary Council

21/02/2018

Item: 10.03

Subject: Lake Cathie Foreshore Master Plan

Presented by: Strategy and Growth, Jeffery Sharp

Alignment with Delivery Program

2.4.1 Work with the community to identify and address community needs, to inform Council processes, services and projects.

RECOMMENDATION

That Council:

1. Note the information contained within the Draft Lake Cathie Foreshore Master Plan – Results of Community Engagement.

2. Place the draft Lake Cathie Master Plan on public exhibition for 28 days between 1^st March and 29^th March 2018.

Executive Summary

The coastal village of Lake Cathie has a strong connection to the water, both to the Ocean and to Lake Cathie, which are popular community and tourist attractions. The Lake Cathie foreshore is an approximately 1.2km regionally significant foreshore space from Evans Street to Illaroo Drive used by people of all ages from across the LGA and further afield.

The Master Plan has been developed following extensive community consultation including a community-wide postcard campaign, a self-nominated Community Think Tank, a Family Fun Day and a 28 day exhibition period. The draft plan has endorsement and support of the Lake Cathie Progress Association and the Lake Cathie-Bonny Hills Lions Club, both of whom have indicated that they are prepared to co-produce various projects within the Master Plan.

Discussion

Background

The Lake Cathie foreshore is an approximately 1.2km regionally significant foreshore space from Evans Street to Illaroo Drive used by people of all ages from across the LGA and further afield. The local and regional communities are particularly attached to the foreshore space for both active and passive recreation pursuits and over the years the space has received a number of ad-hoc refurbishments.

Given the increased population pressures in the Lake Cathie/Bonny Hills area, the need has been identified to look more holistically at the foreshore space and to strategically plan for its future. As such, Council has prepared the Lake Cathie Foreshore Master Plan following extensive consultation with the local community.

The Lake Cathie/Bonny Hills area will experience significant population growth in the period to 2036 given the natural attraction of the coastal villages, the relatively short commute to Port Macquarie and the scope that exists for residential growth. The area is anticipated to be the second fastest growing urban area in the Port Macquarie-Hastings, with population growing from about 6,300 in 2016 to over 10,000 residents by 2036, an average of more than 160 persons each year.

The biggest driver of this growth is expected to be young families, with over 70% of growth anticipated to come from babies to secondary schoolers, tertiary education and young workforce, and parents and homebuilders.

Planned future development is oriented along the coast between Lake Cathie and Bonny Hills. This growth will generate demand and opportunities for a range of new and/or upgraded services as well as new and improved community and recreation facilities. The aim is to provide these facilities in easily accessible locations and at the level needed by the local community.

Given these current and expected population pressures and demographic changes, the local community and the Lake Cathie Progress Association have entreated Council to develop a strategic vision for the foreshore space that balances community interests and provides for future capacity.

The Lake Cathie Progress Association has proactively advocated for Lake Cathie village for many years. The group has driven the compilation of the Lake Cathie Village Master Plan 2000 and most recently the Lake Cathie Village Master Plan 2010 Revision. Both plans were based on self-initiated community engagement by the Progress Association including an Open Day at the Community Hall in 2000 and questionnaire survey distributed by mail throughout Lake Cathie with 683 responses received in 2010.

The establishment of an all-ages active space or skate facility in Lake Cathie has been under discussion within the community for at least 16 years. There has been at least three concerted attempts to from various groups to progress the proposal. The latest initiative arising in 2016 is a partnership between the Lake Cathie Skate & Recreation Park Project community working group and the Lake Cathie-Bonny Hills Lions Club. These two groups have committed to fundraising for the implementation of a family skate and recreation park and to undertake extensive community engagement around the location and design of such a facility. Their project has endorsement from the Lake Cathie Progress Association.

There has been broad community support for the skate and recreation park proposal both prior to and throughout the consultation process: fifteen local business have provided over $10,000 in sponsorship for the proposal; letters of support have been received from Dr. Sam Nelapati from Lake Cathie Medical Centre, Lake Cathie Football Club, Lake Cathie-Bonny Hills Lions Club, Lake Cathie Progress Association, Dr. Rosemary Stanton, Port Macquarie Headspace, Dr. David Gillespie MP and Leslie Williams MP who spoke in support of the proposal in a Private Members Statement on 22 November 2017. The project also received a Port Macquarie-Hastings Council Community Grant to assist with the development of concept plans from internationally regarded landscape firm ENLOCUS.

It should be noted that the family skate and recreation park proposal has not been without community concern. These concerns were the focus of a number of media articles, Port News November 6 2017 ‘Concerns raised about Lake Cathie’s skate park positioning’; Camden Haven Courier November 8 2017 ‘Concerns raised about Lake Cathie’s skate park positioning’, as well as making representation to Council at Ordinary Meetings in at least March 2017, October 2017 and December 2017. A number of petitions were also circulated around the location of the skate park with the concept of ‘saving the lake’. Correspondence between Council and the proponents related to these concerns is attached.

Community Engagement - Process

Following the engagement undertaken by the Lake Cathie Progress Association, and given the prominence of the site and the scope of opportunities available, the engagement process comprised five steps aimed at maximising the opportunity for public to participate, engage with the proposals and comment on the plans.

Stage	Action	Date
Stage 1	Postcard Campaign	21 Aug – 14 Sept
Stage 2	Community Think Tank Team (Community Forum)	18 Sept – 21 Oct
Stage 3	Master Plan Development and whole community engagement	25 Sept – 2 Nov
Stage 4	Refine the Master Plan based on community feedback	Nov 2017 - Feb 2018
Stage 5	Final Draft – Public Exhibition ( if deemed that it is required)	Feb - Mar 2018

Stage 1: Postcard Campaign – 21 August-14 September 2017

· The initial engagement process was a postcard campaign aimed at collecting information from the local community on what they think would be the uses/activities/infrastructure for the Lake Cathie Foreshore;

· Postcards were mailed out to all residents and property owners in postcode 2446. Australia Post was contracted to distribute these.

· Return was by various means including: post, onsite return boxes located on the foreshore and at the Woolworths car park; drop in to Council offices or libraries;

· This stage also included various media releases, posters, flyers, information in school newsletters, community newsletters, plus static displays at the shopping centre and foreshore parks;

Stage 2: Community Think Tank Team (Community Forum) – 18 September-21 October 2017

· The Community Think Tank team was comprised of 19 self-nominated community members, representative of a broad range of demographics and community groups. All those who nominated were included in the Think Tank.

· The group undertook a comprehensive review of the postcard campaign to familiarise themselves with the community expectations, as well as site analysis. This identified the key ideas and must-haves as well as constraints and opportunities related to the foreshore site;

· They then undertook an ‘enquiry by design’ workshop facilitated by Council’s Group Manager Community Place and Group Manager Recreation and Buildings with assistance from Council’s Community Place team and Senior Landscape Architect.

· The workshop resulted in each table designing their preferred outcomes, taking into account the background and community feedback, onto a large-scale plan of the area;

· While it was originally expected that a number of ‘options’ would be developed out of the Think Tank Workshop, each table independently produced very similar plans with consistent key ideas and must-haves and so a single draft Master Plan was produced;

Stage 3: Master Plan Development and Whole Community Engagement-25 September – 2 November:

· A Family Fun Day was originally scheduled for Saturday November 18, however was postponed by 1 week owing to poor weather;

· Approximately 1200 people attended a Family Fun Day that was held on the Lake Cathie foreshore from 10am-2pm Saturday 25 November;

· Live music, face painting, free sausage sizzle and giant games and activities were on offer to encourage people to come down, as well as a popup tent with the draft Master Plan, background information and Fact Sheets on display, Council staff to answer questions and a ‘dot-ocracy’ to enable people to vote for their preferred options;

· The Family Fun Day provided broad endorsement of the draft Master Plan with the top three priorities identified being: (Item # 10) Reclaimed sandy beach; (Item # 3) Indicative family skate and recreation park; (Item # 1) new fenced playground and swings;

The Lake Cathie Masterplan brings together community preferences that have been gained from all stages of the community engagement. See Attachment 5

Stage 4: Refine the Master Plan based on community feedback – November 2017 to February 2018:

· Continued community feedback was sought through public exhibition of the draft Master Plan for 28 days between 20 November and 18 December 2017;

· Following the feedback from the Community Think Tank and the Family Fun Day, further broad endorsement of the draft Master Plan was received;

Community comment on the Draft Lake Cathie Master Plan was open from 20 November to 18 December 2017. The plans were displayed at the Customer Services Centres, Libraries and on Have Your Say.

A number of signs were placed in prominent locations along the Lake Cathie Foreshore and Woolworth’s car park, as well as posters throughout local Lake Cathie shop windows informing the public about the proposed master plan and seeking their input. They were directed to customer service, email or the web site to lodge a submission.

Local media published a number of stories since the beginning of the engagement process:

Port News, four stories –

· Port News September 12 2017 ‘Progress Association urges residents to get involved in Lake Cathie Foreshore Master Plan’;

· Port News November 6 2017 ‘Family Fun Day planned for launch of draft Lake Cathie Foreshore Master Plan’;

· Port News November 6 2017 ‘Concerns raised about Lake Cathie’s skate park positioning’;

· Port News November 27, 2017 ‘Draft Lake Cathie Foreshore Master Plan presented on November 25;

Camden Haven Courier, four stories –

· Camden Haven Courier October 24 2017 ‘Wait and see for Lake Cathie’s skate and recreation park’;

· Camden Haven Courier November 1 2017 ‘Community invited to Family Fun Day at Lake Cathie Foreshore plan launch’;

· Camden Haven Courier November 8 2017 ‘Concerns raised about Lake Cathie’s skate park positioning’;

· Camden Haven Courier November 28 2017 ‘Draft Lake Cathie Foreshore Master Plan presented on November 25, includes skate and recreation park’;

Stage 5: Final Draft – Public Exhibition - February - March 2018:

· Display final Master Plan for exhibition period, through static displays in Lake Cathie, on the webpage, advertised through local media outlets, customer service centres, libraries and local businesses.

· Adopt the final plan and develop an action plan for implementation including responsibility and liaise with key groups about involvement.

Although Stage 5 was in the original engagement proposal, given the extent of engagement and the participation levels from the local community it may not be necessary if Council determines that additional engagement is not required.

Community Engagement – Outcomes to date

At total of 1082 submissions were received through Stages 1 to 4, including:

Stage	Submissions
1	392
2	19 community representatives
3	295 dot-ocracy participants 1000 visits to the engagement on the day
4	376 submissions inc. 64 submissions and 312 across various petitions

A significant number of the draft Lake Cathie Foreshore Master Plan submissions were received through the Have Your Say website. The web site had links to the proposed draft Master Plan, Lake Opening Strategy as well as background material.

A visitor summary of the Have Your Say engagement tool is shown below. There were 1800 total visits to the Lake Cathie Foreshore Master Plan Have Your Say page and 358 people downloaded and viewed the draft Master Plan. Of the people that visited the Have Your Say site, 287 accessed it through the Port Macquarie-Hastings Council web page, 553 were referred from Facebook, and 182 from the various local newspapers.

The themes that emerged from the formal submissions were similar to those from other forms of engagement. Submissions from this and the previous public engagement and participation are attached for information.

A number of key themes carried through all stages of the engagement process. These related to the need for pathways to accommodate multiple user groups; a desire to maintain active and passive spaces; the location of the family skate and recreation park; upgraded toilet block; and foreshore erosion issues.

INITIATIVE	OUTCOME
LAKE CATHIE FORESHORE MASTER PLAN
1. Pathways need to accommodate multiple users, i.e. people, scooters, bikes, prams.	The draft Master Plan identifies the need to cater to multiple user groups. Pathways have been designed above minimum standard to 2 or 2.5m to cater to this diversity of use.
2. The active areas encroach on the passive space.	The foreshore space has not traditionally had a separation between active and passive activities. The draft Foreshore Master Plan more clearly identifies active spaces to the east focused around the playground and family skate & recreation park, with large open areas for passive activities focused to the west.
3. The proposed family skate & recreation park is in the wrong spot.	The Family Recreation and Skate facility is designed to complement the space by adding activities for all ages within a landscaped setting and with facilities such as bqs and tables, seats + shade, creating a space for all ages. The location of the family recreation & skate park is the result of an assessment of appropriate locations for active space in the Lake Cathie area – the location identified in the draft Master Plan being the only location that met best practice desired criteria, including: · Close proximity to bus stops (within 100m), which will assist the facility to have regional connectivity to schools and communities. · Adjacent to Ocean Drive, the main axis into town and 10mins from Police and Ambulance Services (Port Macquarie). · Adjacent to pedestrian and cycle pathways, connecting the site to the commercial centre of town. · Clearly visible, improving the opportunity for vehicle patrol and passive surveillance. · Within the Foreshore Recreation Precinct, utilising adjacent amenities, parking and services. · Outside of the required acoustic distance to neighbouring homes, ensuring minimal noise pollution.
4. The proposed toilet needs separate male/female cubicles and a change room	The existing toilet block is approaching the end of its design life and will require either upgrading or replacement in the near future. The existing toilet block is also poorly located and poorly connected to the foreshore area. The layout and specific facilities will be considered during detailed design.
5. The foreshore erosion needs to be accounted for and the lake needs to be opened	Foreshore reclamation will follow beach nourishment works which are expected to be undertaken late 2018. Lake Cathie is classified as an ICOLL (Intermittently Closed and Open Lake or Lagoon), meaning it periodically opens and closes via natural processes, with both cases supporting important natural ecosystems. Council’s policy for artificially opening the lake is available on its website.

The submissions can be viewed in full in Attachments 1, 2, 3 and 4.

Options

With respect to the Draft Lake Cathie Master Plan, Council could either reject the plan, proceed to further public exhibition or deem that given the extensive engagement to date, choose to adopt the Plan without further public exhibition.

Community Engagement & Internal Consultation

Internal

PMHC Recreation & Buildings – Group Manager

PMHC Recreation & Buildings – Senor Landscape Architect

PMHC Community & Place – Group Manager

PMHC Community & Place – Team Leader

PMHC Community & Place – Place Facilitator

PMHC Environmental Services – Group Manager

PMHC Environmental Services – Waste & Environmental Services Engineer

External

Lake Cathie Progress Association

Lake Cathie-Bonny Hills Lions Club

Community Consultation - See Attachments

Planning & Policy Implications

The submissions have been considered throughout the master planning process as noted in the discussions section.

The draft Master Plan is consistent with the Lake Cathie Village Master Plan revision 2010 developed by the Lake Cathie Progress Association.

The Lake Cathie Village Master Plan 2010 Revision makes a number of recommendations which broadly focus around Access, the Natural Environment, Urban Development, Cultural and Community Services, Sport and Leisure, Tourism, and Precinct Plans. Many of these recommendations are mirrored throughout the community engagement undertaken as part of the draft Lake Cathie Foreshore Master Plan. Specifically elements such as the life guard tower, streetscape improvements, improved playground and active area facilities, development of a skate park, wayfinding and entry signage; additional bbq, car parking and lighting along foreshore reserve, and increased connectivity across the village.

The draft Master Plan is consistent with Councils Recreation Action Plan 2017-2025. This strategic document is used to guide Councils priorities for recreation capital works, and emerged from the 2014 Recreation Need Study which looked at concentrations of recreational facilities per capita and made recommendations for service provision.

The development of a master plan for Foreshore Reserve is identified as an immediate priority in the Recreation Action Plan and the Lake Cathie Skate Park is identified as a short term priority project (2018/19-2019/20).

Most improvements identified within the draft Master Plan are considered exempt development or development permitted without consent under State Environmental Planning Policy (Infrastructure) 2007.

The proposed beach reclamation at Foreshore Reserve identified in the draft Master Plan is subject to required environmental approvals and provision of a license from Crown Lands.

Financial & Economic Implications

The following funds are available this financial year to support the implementation of the Lake Cathie Foreshore Master Plan:

· $138,000 for the Lake Cathie Foreshore Playground ($88,000 from the capital works program plus $50,000 from PMHC Access Committee for the all-abilities carousel)

· $9,200 from PMHC Access Committee for accessible pathway to the new Fishing Platform and fish cleaning table.

· There are funds identified in the draft Open Space Contributions Plan in the short and medium term for the upgrades to the Reserve and construction of a skate park. These are subject to approval by Council through future operational plan development.

The draft Master Plan has the endorsement and support of the Lake Cathie Progress Association and the Lake Cathie-Bonny Hills Lions Club, both of whom have indicated that they are prepared to deliver/co-produce various projects within the Master Plan, including the new toilet block and the family skate and recreation park.

Attachments

1 View. Attachment 1 - Lake Cathie Foreshore Master Plan - Engagement Summary

2 View. Attachment 2 - Lake Cathie Foreshore Masterplan - Lake Cathie Progress Association for group 104 residents

3 View. Attachment 3 - Lake Cathie-Bonny Hills Lions Club Portfolio 1a

4 View. Attachment 4 - Lake Cathie-Bonny Hills Lions Club Portfolio 1b

5 View. Attachment 5 - Lake Cathie-Bonny Hills Lions Club Portfolio 1c

6 View. Attachment 6 - Lake Cathie-Bonny Hills Lions Club Portfolio 2

7 View. Attachment 7 - Lake Cathie-Bonny Hills Lions Club Portfolio 3

8 View. Attachment 8 - Lake Cathie-Bonny Hills Lions Club Social Media Activity

9 View. Attachment 9 - Lake Cathie Foreshore Masterplan - Sue and Merv East with petition

10 View. Attachment 10 - draft Lake Cathie Foreshore Masterplan

AGENDA Ordinary Council

21/02/2018

Item: 10.04

Subject: Tastings on Hastings

Presented by: Strategy and Growth, Jeffery Sharp

Alignment with Delivery Program

2.5.1 Support cultural activities within the community.

RECOMMENDATION

That Council:

1. Note the information contained in report regarding the Tastings on Hastings 2017 event.

2. Endorse an interim approach, for the 2018 event as broadly detailed in Option 1of the report, with a focus on the Bicentenary.

3. Request the General Manager table a three year strategy for this key community event via a report to Council in October 2018.

Executive Summary

The 15^th Tastings on Hastings was presented by Port Macquarie-Hasting Council over the weekend of 27 – 29 October 2017, with over 14,500 people attending the weekend program of events, showcasing local food, farmers, producers and entertainment. The event is one of the region’s largest local events celebrated by our community whilst also bringing visitors to the region. The event resulted in a direct visitor spend of $349,622 and an estimated total economic impact of $1.1 million.

Discussion

At the Ordinary Council Meeting held on 15 March 2017, Council resolved:

That Council:

1. Note in consideration of submissions received for RFQ-17-03 Tastings on Hastings Event Coordinator the evaluation panel’s recommendation, that all submissions be declined and respondents appropriately notified.

2. Adopt Option 5 (a modified Tastings on Hastings event in the Port Macquarie CBD using in-house Council resources supported by specialist contractors) as the proposed delivery model for the 2017 Tastings on Hastings.

CARRIED: 8/0 FOR: Besseling, Cusato, Griffiths, Hawkins, Intemann, Levido, Sargeant and Turner AGAINST: Nil

This report provides information on the delivery of the 2017 Tastings on Hastings event.

Background

For the past 15 years, Tastings on Hastings has promoted our local farmers and producers and is a much loved fixture on the local calendar.

The focus over the past three years we have seen a shift from being just about our locavore (100 miles), producers and moving more toward a much loved community celebration about igniting all of our senses and is fast becoming one of the largest local events in our region

In 2014, an external Coordinator was contracted to deliver the 2015 and 2016 events, assisting in growing audiences and visitors to the region. In March 2017, due to construction and infrastructure works occurring on the Town Green and Town Square site, Council resolved to deliver a modified event in the CBD, using in-house Council resources supported by specialist contractors. The modified event format proposed the following:

- A new event precinct stretching from Town Green West, the northern tip of Short Street and the western end of Clarence St (including the foreshore and boardwalk);

- A focus on an extended ‘Tastings Ignites’ (Saturday afternoon through to evening) event, in place of a Sunday 'Main Event';

- The use of Council staff skills and capacity for the majority of event management functions (e.g. logistics, layout, approvals);

- Specialist contractor/s to deliver event elements such as sponsorship and exhibitor sales; and

- Garnering support for a small number of independent 'satellite' events, and promoting farm gate and hinterland experiences to complement the 'Tastings Ignites' over the weekend.

Given the site constraints and challenges of working with a changing site, limited access to power and site construction, the new format resulted in a very successful weekend program of events.

Tastings on Hastings 2017 - Post Event Report

Port Macquarie-Hastings Council presented its 15^th Tastings on Hastings event from 27 October - 29 October 2017.

Showcasing the food producers, food vans and stallholders within a 100 mile food radius, the main event was held on the Saturday 28 October with other satellite events held throughout the weekend. The ‘satellite’ events added value to the main event activities and rounded out a full weekend of event options, particularly for out of region visitors.

Event expenditure for Tastings on Hastings 2017 was a net cost to Council of $46,480, which was lower than 2016 levels. This is a great achievement noting that there was significantly reduced sponsorship and site restrictions. This was partially due to an increase in gate takings and a small reduction in infrastructure costs.

A major change to the event program in 2017 saw the main event move from the Sunday 10am – 4pm time slot, to a Saturday from 12pm – 8pm. Building on the success and feedback of the previous year’s Tastings Ignites event, the new format enabled increased opportunities for businesses and vendors to optimise event timing to capture both lunchtime and evening crowd. The timing also enabled holidaying visitors the opportunity to stay both the Friday and Saturday night, allowing additional time for visitor spending across the weekend.

75 stall holders exhibited their goods ranging from locally made clothing, farm fresh produce, freshly produced hot food to local food and wines.

Over 13,000 people walked through the gates and an additional 1500 participated in satellite events. Given the constraints of construction works on the Town Green and smaller scale of the event, numbers were above expected attendance.

The $5 entry fee (for adults only) was again collected to assist in offsetting event costs. This year, there was little to no resistance in paying the entry fee.

During the day, Council presented “The Oyster Barn”, which provided an opportunity for our local oyster producers to sell direct to the public and talk to visitors about their produce.

Celebrity Chef Matt Golinski was again engaged in the lead up to the Tastings on Hastings event to meet with local producers in a larger digital campaign to promote the farmers and producers of our region. Golinski was then a key drawcard at the event and also hosted a breakfast in the lost plot on the Sunday Morning.

There were significant and steady crowds throughout the day and into the evening. A strong entertainment line-up featuring top local musicians in association with established regional bands hit the Main Stage. The on-stage entertainment also incorporated a “Wing eating competition” - a new element to the main stage line-up.

Additional cultural elements featured local singer songwriters on a small busking stage, an Aboriginal dance troupe, creative sculptures and fire twirlers, all of which were embraced by the local community and increased appreciation by visitors which is demonstrated through the visitor survey with an increase in atmosphere and entertainment as best aspects of the event.

Local artist Rhi Rebellion was engaged to work with the community to develop decorative items for the event. Free creative workshops were held on the day, providing the opportunity for children and adults alike to participate in a creative aspect of the festival.

The success of the festival with a strong community aspect can be demonstrated through the growth of local attendees to the event. The changes to the format, the overall feel of the event, and use of the Town Square space, created a unique event that highlights our local region, and positions the Tastings on Hastings as a significant community event.

Satellite Events

Tastings on Hastings presented 14 Satellite events in partnership with local restaurants, farmers, and travel tours. This was a significant increase from previous years, which enabled more of the local farmers and producers to be engaged and part of the Tastings on Hastings event program. The Satellite events provided a direct focus on our local producers, opening up experiences for our community and visitors alike. Of the 14 events, 11 events sold out, with other events being at approximately 90% capacity. A list of the partnering satellite events is below:

· Gastronomy Pub Dinner with Public House management Group Executive Chef Ben Varela – Settlers Inn;

· Foragers Dinner – The Whalebone Wharf;

· Perfect Pairing Tours – Frankies Travel;

· Tastings Platters Little Fish Café;

· Local Beer and Tapas Degustation – The Latin Loafer;

· Celebrate Local – A Seafood Feast – Bills Fishhouse;

· Locally made, Internationally Inspired Dinner – Stunned Mullet;

· Wauchope Farmers Market;

· Paddock to Plate Tour – Frankies Travel;

· Long Lazy Lunch – Drury Lane;

· Hastings Hidden Gems Tour – Frankies Travel;

· The Sustainable Table with Matt Golinski – The Lost Plot;

· Meals in the Fields – Near River Produce; and

· Cassegrain Wines Long Lunch – Cassegrains

Sponsorship

PMHC engaged Dragonfly Marketing to attract and coordinate the sponsorship for the 2017 event. The event had eight event sponsors who supported the 2017 community event. In a tough sponsorship environment, cash sponsorship received was $17,000.00, far below the projected level of $25,000. This is down significantly from previous years, and did not meet the projected budget levels for 2017 impacting on the bottom line. The event attracted approximately $57,000 in-kind value from numerous groups

Exhibitor feedback

After the event Council sort feedback from the exhibitors this included a debrief with vendors as well as post event survey. Of the 75 exhibitors surveyed, 61% were from the Port Macquarie-Hastings Local Government Area (LGA) and the remaining 39% from within the 160km (100 mile) radius.

Outstanding feedback was received in regards to the event organisation and communication between Council staff and vendors, however suggested improvements regarding the Short Street site area were made pertaining to a drop off of in patrons between 6pm – 8pm.

There was also less interest from stallholders to attend the event this year. Whilst the limited capacity provided a challenge, the change of date and time, previous experience, and the cost of fees for holding a stall were also mentioned as concerns.

Overall, exhibitors were extremely happy with the event with over 82% indicating good or outstanding results in regards to the sales of their product on the day, with 86% of vendors surveyed indicating they would return in 2018, an increase of 12% from the previous year’s event.

Event attendee feedback

Surveys were conducted on the day and online for attendees, providing overall positive feedback i.e. Over 85% indicating that their overall experience was either excellent or very good.

Research also indicated the aspects patrons most enjoyed were the food (38.4%) and entertainment (22.6%). Patrons also valued the social aspect and the atmosphere, with 13% identifying this as one of the best aspects of the event.

A summary of the visitor profile (based on the event survey of 475 event visitors) is below. Of those surveyed:

· 95% attended the Main Event;

· 51% of visitors are over 40 years of age;

· Visitors were attracted from 12 regional markets in NSW and interstate;

· 17% of visitors are from outside Greater Port Macquarie;

· 18% indicated that they had come to the Port Macquarie Town Green specifically for the event; and

· 5% of the visitors are overnight visitors with 3% staying on holidays.

Whilst the feedback was excellent overall, there was a reduction in respondents who suggested that the event met their expectations of 73% (88% previous year).

Marketing

A strong digital marketing approach was once again engaged this year to attract and build audiences. Digital media was the most effective form of promotion reaching 69% of the audiences, outperforming traditional media sources.

As in previous years traditional media sources remain popular for visitors to learn about the festival, with 'word of mouth' (36%), 'newspaper' (28%) and Focus magazine (29%) all providing solid response rates. However, digital media solidified its relevance rising from just 8% in 2013 to 69% in 2017 - outperforming traditional media sources. Digital media included Facebook (40%), Instagram (4%) the event ‘website’ (8%) and email (17%). It is also useful to note that social media platforms offer opportunities for visitors to generate content about the event to their friends. At this event 45% of all respondents uploaded content to social media during the event (Facebook and Instagram).

This year, Council produced an official Event Guide showcasing the weekend program of events. 64,000 guides were distributed across various regions, with 15% of attendees indicating that they heard about the event through the guide.

Council was again successful in securing a $20,000 grant for Tastings on Hastings via Destination NSW’s Regional Flagship Funding.

Funds from this grant supported the development of the official Event Guide and also contributed to a Port Macquarie Spring Events campaign. The campaign was developed with two components, one which specifically promoted travel for Tastings on Hastings. This was a successful awareness campaign. With overall 1,910,606 Impressions translating to 8,346 visits to the destination website providing good exposure for the event. More specifically for Tastings on Hastings there were 6,100 visits to the website which translates to an increase of 83.89% in traffic year on year.

Similar to previous years, the approach with media familiarisation over the weekend program of events was targeted to visitors from the day tripping areas (less than 2 hours away).

For the third consecutive year the destination Public Relations Program co-hosted a group media familiarisation with Destination NSW for Tastings on Hastings. A group of six high-profile media representatives visited the region including Gourmet Traveller, Luxury Travel Magazine, Ellas List, AAP Newswire, NewsLocal and Concrete Playground. The famil provided a bespoke experience of the event and destination for each outlet, including the main event, satellite events and destination attractions and accommodation. Representatives from Alliance Airlines, Destination North Coast and Destination NSW also participated in the familiarisation strengthening key partner relationships.

It is expected that up to $1 million in editorial will be generated and additional benefits and opportunities will evolve through the increased awareness, knowledge and confidence within these strategic partnerships. The familiarisation provides an opportunity to highlight the destination as a whole, including showcasing local growth and opportunity beyond our visitor economy.

Volunteering

This year 54 volunteers assisted with event delivery. Members of the Bonny Hills Surf Life Saving Club provided on site First Aid for the event. Community volunteers manned event gates, distributed surveys, cleared tables and assisted patrons.

The Coastal Warriors assisted Council in providing dedicated support to waste and recycling stations for the event, enabling better education on Bio Pack Products, as well as encouraging patrons to use the correct bins when recycling.

Volunteering numbers have seen a decline over the past three years, not only with the Tastings on Hastings event, but numerous other community events. Consideration will need to be given in regards to Volunteering roles and recruitment in the future.

The total volunteer hours utilised for the event was 270, equating to $10,071.54 of value contribution from our local community.

Future of Tastings on Hastings

Tastings on Hastings continues to be a much loved community celebration and each year we have managed to add new exciting and unique elements that draw more people to our wonderful place. Council is committed to working with our communities to create authentic, vibrant and resilient places that are valued by them and admired by (and attract) visitors and Tastings has been a great vehicle in achieving this.

In August 2014 Council a report was presented to Council with a three year strategy for the Tastings event, refer Attachment 2. At that meeting it was resolved:

That Council:

1. Note the overview of the Tastings on Hastings event and positive progress with 2014 event planning.

1. Commit to the Tastings on Hastings event for a further three year period (2015-2017) with the engagement of an Event Co-ordinator on the basis that the event continue at no more than 2014 forecasted costs.

2. Note a further report will be provided to Council in February 2015 as a post

2014 event wrap-up and update on planning for Tastings on Hastings 2015

Including potential opportunities to add new and unique elements.

CARRIED: 8/0

FOR: Besseling, Cusato, Griffiths, Hawkins, Intemann, Levido, Sargeant and Turner

AGAINST: Nil

We have now come to the end of the three year strategy for Tastings on Hastings and it is now time to assess the event and what is means to the community. A review of the aims and objectives of the event needs to be undertaken and a determination made as to what the event should look like into the future from a Council, community and economic perspective. As well as how this meets the changing needs and trends of the local community and visitors alike.

There are three key considerations which are relevant to determining the future of the Tastings on Hastings event:

Event Objectives:

Over the years, the Tastings on Hastings program has supported and nurtured the growth of this local industry to the point now where our region hosts many opportunities for farmers and producers to sell and market their goods throughout the year.

The industry sector is now also supported by other commercially run events such as Slice of Haven, Wauchope Farmers Markets (Council initiated), The Real Food Markets, Oysters in the Vines, Blues and BBQ Festival, The Foreshore Markets, The Twilight Markets, The Artists Markets and regular degustations, demonstrations and tours, which form part of the Port Macquarie-Hastings experience for visitors and locals alike.

From a destination marketing perspective Tastings on Hastings has provided a platform that secures significant media coverage. Destination NSW (DNSW) has seen value in partnering to host a group familiarisation for the past 3 years. The presence of celebrity chefs, hosted fine dining, paddock to plate experiences and new product alongside the main event on Town Green have provided the hook for nit just community attendance but also media attendance.

There has been a significant increase in the number of food festivals across both NSW and Australia and although Port Macquarie-Hastings does have a vibrant food sector, this remains a challenge when determining the future direction of the event.

Community trends, competing markets and events, rising event infrastructure costs and a competitive sponsorship arena for sponsorship acquisition all need to be considered for the future direction of the Tastings on Hastings event particularly for more sophisticated audiences who expect high-quality entertainment and facilities.

Development of Council’s Events Plan:

Council is currently developing an Event Plan for both large strategic events and community events. This strategic approach which will take a whole of Council/whole of community focus will acknowledge the role and associated benefits that events across the organisation deliver for our community.

Over the coming year there is an ideal opportunity to review the role of Tastings on Hastings as part of the development of the Events Plan - to consult with the community and providers about the desire for this event to continue into the future and if so, the way it is delivered and Council’s role in its delivery.

Consideration should also be given to other event opportunities for key events that might be attractive from both a community and destination perspective and which potentially offer something unique. For example – an expansion of ArtWalk.

2018 Bicentenary Celebrations:

A resolution of a December report to Council on the 2018 Bicentenary celebrations, included the opportunity to provide a Bicentenary “flavour” to scheduled community events such as Tastings on Hastings and ArtWalk.

Event Options

To provide a strategic approach for the coming year/s for the event, whether it remains as the much love Tastings on the Hastings or is developed into something new, a robust engagement process will need to be undertaken to assist in determining a future direction. It is not be achievable to undertake engagement, develop the strategy and deliver an event in 2018.

In light of the above a number options for the 2018 event have been considered. The following options have been considered.

1. Delivery of an event similar to the Tastings Ignite (2016), an evening of music, food and cultural experience. The event would be for part of a weekend of activities including satellite events as well as community events. To include a bicentenary focus the event could be themes around the 200 Tastes of Port Macquarie-Hastings both across the LGA and specifically across our significant heritage sites in the CBD. This would be a focus of council Bicentenary program and commemorate the 200 years since Oxley first visited the region. This could activate the entire CBD with tastings and event experiences (similar to Parramatta laneways Event or our own Artwalk) that focuses on our local produces (across food, drink, arts and culture).

2. Deliver the event (as per previous years) with a bicentennial theme.

3. Do not deliver a Tastings on Hastings event for 2018 whilst diverting resources (budgetary and staff) to the development of the Community Events element of Council’s new Events Plan.

Option 1 is considered most suitable, although still a risk as is a different approach and community expectation would need to be managed. It provide a platform for testing new idea and approaches that may assist in developing a new strategy. It would still continue the history of delivery of a Tastings event, and also recognises the Bicentenary year. This would need to consider an additional budget allocation due to the distribution of infrastructure that may be required.

Option 2 is considered a risk in terms of higher cost due to the larger scale of the event, including event infrastructure costs. Costs for infrastructure have increase over the years, our ability to attract sponsorship has also declined. This option would be achievable with additional budget allocation.

Option 3 is considered a higher risk due to not meeting community expectations and therefore a potential negative impact on Council’s reputation.

The delivery of all options would need to be considered and would once again be a combination of in-house by Council staff with specialist input and Events Co-ordinator. The challenge is to balance the development of a community event with in-house resources and competing priorities.

Community Engagement & Internal Consultation

An internal working group was set up to provide guidance over the 2017 event.

Internal Consultation has involved the following key areas:

· Community Place

· Economic Development

· Parks & Recreation Services

· Transport and Roads

· Electrical Services

· Compliance – Food

· Waste Education and Management

· Infrastructure – Town Green & Town Square Projects

External Consultation

· Significant consultation was had with local businesses, exhibitors and sponsors within the Port Macquarie CBD area.

· The Port Macquarie Marine Rescue Group also provided on call services emergency management as required, including watercrafts.

· Emergency Services were provided detailed plans of the event, and considerate consultation with the Local Liquor Accord and Licensing to ensure the event ran smoothly and successfully.

Planning & Policy Implications

This activity is consistent with the following Delivery Program Objectives:

2.5.1 Support cultural activities within the community

3.1.4 Implement the Destination Management Plan

3.1.3 Implement the Major Events Strategy

There are no planning and policy implications in relation to this report

Financial & Economic Implications

Event expenditure for Tastings on Hastings 2017 was lower than 2016 levels. The expenditure was managed and delivered within and under budget. Noting that there was significantly reduced sponsorship, and due to the smaller site restrictions, limited opportunities for stallholders compared to previous years, income levels were not met to projected levels, in particular with cash sponsorship, which resulted in an anticipated net cost to Council of $47,480, compared to a budgeted cost of $51,700.

Staff time for the event itself was captured in the net cost to Council, however and additional cost of Council staff time ($27,500) was provided in-kind in the months leading up to the event.

Please refer to the confidential attachment titled "Tastings On Hastings 2017 - 3 year Budget Comparison" which contains information that relates to information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business (Local Government Act 1993 - Section 10A(2)(c)).

Attachments

1 View. Confidential: Tastings On Hastings 2017 - 3 year Budget Comparison (Confidential)

2 View. OC Report Tastings on Hastings August 2014

AGENDA Ordinary Council

21/02/2018

Item: 12.02

Subject: DA2017 - 455.1 Residential Subdivision (10 lots) Including Clause 4.6 Objection To Clause 4.1 (Minimum Lot Size) Of The Port Macquarie-Hastings Local Environmental Plan 2011 At Lot 65 DP1226839, Shore Break Crescent, Lake Cathie

Report Author: Daniel Croft

Applicant: Hopkins Consultants Pty Ltd

Owner: Seawide Pty Ltd

Estimated Cost: Nil

Parcel no: 66038

Alignment with Delivery Program

4.3.1 Undertake transparent and efficient development assessment in accordance with relevant legislation.

RECOMMENDATION

That DA2017 – 455.1 for a Residential Subdivision (10 Lots) including Clause 4.6 Objection to Clause 4.1 (Minimum Lot Size) of the Port Macquarie-Hastings Local Environmental Plan 2011 at Lot 65, DP 1226839, Shore Break Crescent, Lake Cathie, be determined by granting consent subject to the recommended conditions.

Executive Summary

This report considers a development application for a residential subdivision (10 lots) at the subject site and provides an assessment of the application in accordance with the Environmental Planning and Assessment Act 1979.

Following exhibition of the application, no submissions have been received.

The application was reported to the Development Assessment Panel on 13 December 2017 where the following resolution was made:

That it be recommended to Council that DA2017 – 455.1 for a residential subdivision (10 Lots) including Clause 4.6 Objection to Clause 4.1 (Minimum Lot Size) of the Port Macquarie-Hastings Local Environmental Plan 2011 at Lot 65, DP 1226839, Shore Break Crescent, Lake Cathie, be determined by granting consent subject to the recommended conditions as amended.

Amend condition B7 to state:

B7 (B029) The ‘laneways’ to lots 401, 402 and 403 shall include:

a) Extension of driveways, water supply, telephone and electricity in conduits laid for the full length of the shaft.

b) Lots 401 and 402 shall be served by a minimum 4.5m wide sealed (e.g. concrete) driveway while Lot 403 shall be served by a minimum 4m wide sealed driveway.

c) The laneways shall be held in ownership of the lots they benefit, with reciprocal rights of access and services.

d) Services shall be contained within the laneways and not on adjoining Council land as illustrated on the DA approved plans.

Details shall be provided with the application for Construction Certificate and constructed prior to release of Subdivision Certificate.

It should be noted that the attached conditions reflect the above changes as recommended by the DAP.

The development is required to be reported to an Ordinary Meeting of Council for determination as it involves a variation to the Port Macquarie Hastings Local Environmental Plan 2011 (LEP 2011) minimum lot size standard by more than 10%.

1. BACKGROUND

Subdivision History and Part 3A Approvals

There are existing Part 3A Concept Plan and Stage 1 Project Approvals for residential, commercial, tourist/mixed uses and environmental works applicable to the site. A summary is provided below.

07_0010 Residential, Commercial and Tourist Development (Concept Plan) being an approval for:

- residential uses for about 217 low density dwellings and about 82 medium density dwellings

- a ‘Hill-Top Village’ neighbourhood centre, including tourist and residential uses of about 160 apartments

- environmental works associated with the Littoral Rainforest and Duchess Creek

- provision of perimeter road, pedestrian, cycle paths and opens space and access to Rainbow Beach

- provision of associated infrastructure including stormwater, drainage and utilities

07_0010 Residential, Commercial and Tourist Development (Project Application)

Dealing with:

- environmental works including establishment of regeneration area, erection of temporary fencing and construction of a timber boardwalk.

Part 3A of the Environmental Planning and Assessment Act, 1979 (the Act) was repealed on 26 August 2011. The Part 3A application was undetermined at the time of these changes. Schedule 6A of the Act established the transitional arrangements and subject to clause 2 of this schedule, the project is a ‘transitional Part 3A project’. Accordingly Part 3A of the Act as existed, prior to its repeal, continues to apply to the project.

Under the terms of the concept plan approval, future approval to carry out the project, other than ‘Stage 1 Environmental Works’, are subject to Part 4 of the Act.

Development Application DA2012/381 for a 176 lot subdivision and associated infrastructure was granted consent by the Joint Regional Planning Panel on 21 February 2013, and was subsequently modified on 27 August 2013. This subdivision is currently under construction and the lots are yet to be registered.

The proposal is for an infill subdivision of a development lot identified as Lot 64 on the modified approved plans for DA2012/381 (see below).

Existing sites features and Surrounding development

Lot 64 in the plan above is now recognised as Lot 65 DP 1226839 and has an area of 5739m².

The site is zoned R1 General Residential, R3 Medium Density Residential and E3 Environmental Management in accordance with the Port Macquarie-Hastings Local Environmental Plan 2011, as shown in the following zoning plan:

The existing subdivision pattern and location of existing development within the locality is shown in the following aerial photograph:

2. DESCRIPTION OF DEVELOPMENT

Key aspects of the proposal include the following:

· Subdivision of the land into 10 residential allotments;

· Variation of the minimum lot size development standard for the land in the Port Macquarie-Hastings Local Environmental Plan 2011.

Refer to attachments at the end of this report.

Application Chronology

· 29 May 2017 – Application lodged.

· 13 to 26 June 2017 – Public exhibition via neighbour notification.

· 12 July 2017 – Additional information request.

· 4 October 2017 – Part additional information provided.

· 13 October 2017 – Part additional information provided.

· 14 November 2017 – Request for outstanding additional information.

· 22 November 2017 – Additional information provided.

3. STATUTORY ASSESSMENT

Section 79C(1) Matters for Consideration

In determining the application, Council is required to take into consideration the following matters as are relevant to the development that apply to the land to which the development application relates:

(a) The provisions (where applicable) of:

(i) any Environmental Planning Instrument:

State Environmental Planning Policy No. 26 - Littoral Rainforests

This policy aims to preserve and protect littoral rainforests in their natural state. This policy applies to land within 100m of the marked boundaries identified in a series of maps marked “State Environmental Planning Policy No. 26 - Littoral Rainforest (Amendment No.2)”.

The eastern boundary of the site forms part of the mapped Littoral Rainforest. Consideration to the potential impacts upon the Littoral Rainforest was considered by the Department in their assessment of the Part 3A Concept Plan. The relevant matters for consideration as required by this policy were addressed in Part 5 of the Director-General’s Environmental Assessment Report.

The application is consistent with the Part 3A Concept Plan Approval and further consideration of this policy is not deemed necessary.

State Environmental Planning Policy No. 44 - Koala Habitat Protection

This policy aims to encourage proper conservation and management of natural vegetation areas that provide habitat for koalas. The Lake Cathie-Bonny Hills (Area 14) Koala Plan of Management applies to the site.

There are no trees located on this site and the proposal is consistent with the adopted Lake Cathie-Bonny Hills (Area 14) Koala Plan of Management.

State Environmental Planning Policy No. 71 – Coastal Protection and Clause 5.5 of Port Macquarie-Hastings Local Environmental Plan 2011

The policy applies generally to development in the coastal zone. Clause 2 sets out the aims of the policy which includes the protection, preservation and effective management of coastal areas and natural resources including vegetation, beaches and amenity. Clause 8 sets out the matters for consideration by a consent authority when determining a development application in the coastal zone.

As part of the Part 3A Concept Plan the Department considered these matters and concluded that the project would improve public access to the coastal foreshore, demonstrates due regard to its environmental setting and surroundings, is not detrimental to the scenic amenity of the coastal foreshore, includes measures to protect and regenerate existing coastal habitats and includes measures to protect and conserve items of Aboriginal cultural heritage.

In obtaining the Part 3A Concept Plan Approval for the development, the applicant is not required to obtain a Master Plan (or waiver) from the Department under SEPP 71. The application is consistent with the Part 3A Concept Plan Approval and further consideration of this policy is not deemed necessary.

Having regard for clauses 2, 8 and 12 to 16 of the SEPP and clause 5.5 of LEP 2011, the proposed development will not result in any of the following:

a) any restricted access (or opportunities for access) to the foreshore

b) any adverse amenity impacts along the foreshore and on the scenic qualities of the coast;

c) any adverse impacts on flora and fauna;

d) the development being subject to any adverse coastal processes or hazards;

e) any significant conflict between water and land based users of the area;

f) any adverse impacts on any items of archaeological/heritage;

g) reduction in the quality of the natural water bodies in the locality (due to effluent & stormwater disposal, construction impacts, landuse conflicts);

h) adverse cumulative impacts on the environment;

i) a form of development that is unsustainable in water and energy demands;

j) development relying on flexible zone provisions.

The site is cleared and located within an area zoned for residential purposes.

Port Macquarie-Hastings Local Environmental Plan 2011

The proposal is consistent with the LEP having regard to the following:

· Clause 2.2, the subject site is zoned R1 General Residential, R3 Medium Density Residential and E3 Environmental Management.

The objectives of the R1 general residential are as follows:

o To provide for the housing needs of the community.

o To provide for a variety of housing types and densities.

o To enable other land uses that provide facilities or services to meet the day to day needs of residents.

The objectives of the R3 medium density residential zone are as follows:

o To provide for the housing needs of the community within a medium density residential environment.

o To provide a variety of housing types within a medium density residential environment.

o To enable other land uses that provide facilities or services to meet the day to day needs of residents.

The objectives of the E3 Environmental Management zone are as follows:

o To protect, manage and restore areas with special ecological, scientific, cultural or aesthetic values.

o To provide for a limited range of development that does not have an adverse effect on those values.

In accordance with Clause 2.3(2), the proposal is consistent with the zone objectives having regard to the following:

o The proposal would provide lots capable of a variety of medium density housing types.

o The development would contribute to meeting the housing needs of the community.

· Clause 4.1, the lot sizes within the proposed subdivision range from 450m² to 845m². The lot size map identifies a minimum lot size provision of 450m² and 1000m²applicable to the land. A copy of the minimum lot size map over the site is provided below:

Proposed lot 401 will comply with the minimum 450m² applicable. However none of the other lots will technically comply with the minimum lot size provision of 1,000m². Specifically, the strip alongside the frontage of Shore Break Crescent. Refer to proposed subdivision layout with minimum lot size mapping overlayed below for context. Had it not be for this strip lots 404, 405, 406 and 407 would comply with the 450m² minimum lot size provision.

Lots 402, 403, 408, 409 and 410 do not comply with the minimum 1000m² lot size provision. The proposal constitutes a variation of up to 55% of the development standard.

The objectives of clause 4.1 are as follows:

(a) to ensure that lot sizes are compatible with local environmental values and constraints,

Comment: The site of the proposed infill subdivision is not affected by any significant environmental or other significant constraints. The reduced lot sizes are therefore considered compatible with the site characteristics.

(b) to facilitate efficient use of land resources for residential and other human purposes,

Comment: The lot sizes would facilitate residential densities in the Rainbow Beach area consistent with the densities projected in Development Control Plan 2013.

(c) to minimise the fragmentation of rural land suitable for sustainable primary production,

Comment: Not applicable.

(d) to protect high ecological, scientific, cultural or aesthetic values of land in environment protection zones.

Comment: The E3 zone extends approximately 8m into the property along the eastern boundary. There is no vegetation located on the lot. There is no high ecological, scientific, cultural or aesthetic values identified on the land.

· Clause 4.6, development consent must not be granted for development that contravenes a development standard unless the Council is satisfied that the applicant’s written request has adequately addressed the following matters:

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

(b) that there are sufficient environmental planning grounds to justify contravening the development standard

Additionally, the proposed development must be shown to be in the public interest because it is consistent with the objectives of the particular standard and the objectives for development within the zone in which the development is proposed to be carried out.

As detailed above under clauses 2.3 and 4.1, the proposed development would satisfactorily achieve the objectives of the zone and minimum lot size standards and is considered to be in the public interest.

Compliance with the minimum lot size standard is considered unnecessary in the circumstances of the case as the proposed development would provide suitable housing opportunities and not compromise the overall housing density projected for the area.

There is sufficient justification on environmental planning grounds for the development as follows:

o The same subdivision layout could be achieved with an integrated Torrens title housing development under the provisions of Clause 4.1A of the LEP, which would not require a variation of the minimum lot size provisions.

o The lot size mapping is irregular in relation to the lot, being that the minimum 1000m² lot size provision extends along the frontage of the lot facing Shore Break Crescent.

o Each proposed lot is capable of accommodating a dwelling that complies with the DCP controls.

o The development provides greater flexibility in building design for future purchasers of the land.

o The development would not compromise the desired dwelling yields for the Rainbow Beach urban release area.

o The proposal would not significantly compromise the future redevelopment of the land for higher density residential uses in accordance with the land zoning.

Council has assumed concurrence under the Department of Planning and Environment’s Planning Circular PS 08-003 to determine the application. However, the application is required to be determined at a meeting of full Council in accordance with Planning Circular PS 08-014 due to the variation being greater than 10%.

· Clause 5.5 - Development within the coastal zone - relevant objectives of this clause are addressed by SEPP 71 section (see above).

· Clause 5.9 - No listed trees in Development Control Plan 2013 are proposed to be removed.

· Clause 5.10 – Heritage. The site does not contain or adjoin any known heritage items or sites of significance.

· Clause 6.1 - A copy of the Director General’s Certificate certifying that satisfactory arrangements are in place for the provision of State public infrastructure for the Area 14 Urban Release Area at Lake Cathie / Bonny Hills has been provided to Council and is dated 6 December 2012.

· Clause 6.2, satisfactory arrangements are in place for provision of essential public utility infrastructure including stormwater, water and sewer infrastructure to service the development within an urban release area.

· Clause 6.3 - Development Control Plan 2011 - Rainbow Beach provisions are in place for the urban release area. See comments below under the DCP section for details.

· Clause 7.9 - Part of the subject site is mapped as being subject to acoustic controls. A Traffic Noise Impact Assessment was undertaken by Heggies Pty Ltd, dated 5 July 2010 as part of the Part 3A Concept Plan application and road traffic noise impacts were also considered as part of the residential subdivision approved under DA2012/381 that will create the development lot.

Heggies have advised that the relevant current Australian Standards are an appropriate tool in the assessment of road traffic noise where the SEPP (Infrastructure) 2007 provisions do not apply. The relevant standards are as follows:

o AS 2107:2000 - Acoustics - Recommended design sound levels and reverberation times for building interiors; and

o AS 3671:1989 - Acoustics - Road traffic noise intrusion - Building siting and construction.

Construction categories 1 and 2 contained within AS 3671:1989 can provide an internal noise reduction of between 10dBA to 25dBA respectively. In relation to the predicted noise levels for the residential subdivision approved under DA2012/381, the incorporation of category 2 construction measures as follows was considered to satisfy acceptable internal noise level criteria:

o Category 2 construction measures for dwellings with a direct frontage to Ocean Drive.

It was also proposed as part of DA2012/381 that allotments with direct frontage to Ocean Drive would incorporate lapped and capped boundary fencing 1.8m in height erected upon a 0.4m high earth mound. The proposed treatment would extend approximately 360m along the Ocean Drive frontage and provide for additional noise mitigation.

The conditions of consent for DA2012/381 required a restriction as to user under Section 88B of the Conveyancing Act 1919 to be placed on the titles of the lots with a direct frontage to Ocean Drive.

The noise barrier proposed as part of DA2012/381 only extends to the western side of the development site and some of the lots are exposed to road traffic noise despite the greater separation distance. Modelling in the Heggies report suggests that Category 2 construction measures would be required for all lots in the proposed subdivision. A condition of consent is proposed requiring a restriction as to user under Section 88B of the Conveyancing Act 1919 to be placed on the titles of the lots.

With the above restriction, the proposed development is considered capable of achieving satisfactory internal noise levels.

· Clause 7.13, satisfactory arrangements are in place for provision of essential services including water supply, electricity supply, sewer infrastructure, stormwater drainage and suitable road access to service the development. Provision of electricity will be subject to obtaining satisfactory arrangements certification prior to the issue of a Subdivision Certificate as recommended by a condition of consent.

(ii) Any draft instruments that apply to the site or are on exhibition:

No draft instruments apply to the site.

(iii) any Development Control Plan in force:

Port Macquarie-Hastings Development Control Plan 2013

*DCP 2013: Chapter 3.6 - Subdivision*
DCP Objective	Development Provisions	Proposed	Complies
3.6.3.2	Torrens title lots minimum width of 15m when measured at a distance of 5.5m from front property boundary.	Lots 405, 406, 407 are 14.52m wide. Lot 408 is 14.71m wide. All other lots area greater than 15m wide. The lots are capable of accommodating a dwelling that can comply with the DCP requirements.	No, but acceptable.
	Minimum width of 7m when boundaries are extended to kerb line.	Yes.	Yes
	Minimum depth of 25m.	All lots that are not corner lots comply with this requirement.	Yes
3.6.3.3	Battleaxe lots discouraged in greenfield development.	Battleaxe arrangement proposed for lots 401, 402 and 403.	No, but acceptable.
3.6.3.4	Lots are to be designed to allow the construction of a dwelling, which does not involve more than 1m cut, or fill, measured from natural ground level, outside the dwellings external walls.	Lots not expected to require more than 1m of cut or fill for dwelling construction. Acceptable site levels established under DA2012/381.	Yes
3.6.3.5	Wherever possible orientate streets to maximise the number of east, west and south facing lots and to minimise the number of narrow north facing lots. Residential street blocks should preferably be orientated north-south with dimensions generally limited to 60-80m by 120-150m as illustrated in Figure 3.6-2.	Street layout already established under DA2012/381.	n/a
3.6.3.5	Lot size and shape are to reflect orientation to ensure future dwelling construction has optimal opportunity for passive solar design.	Lot orientation satisfactory.	Yes
3.6.3.6	Kerb and guttering, associated street drainage, pavement construction and foot paving across the street frontages should be constructed as part of the subdivision works where these do not exist (may be varied subject to criteria in this clause).	Relevant works will be required as part of the subdivision. See comments later in this report.	Yes
3.6.3.20	Water supply to meet Council’s design specifications.	See comment later in this report under Water Supply Connection.	Yes
3.6.3.24	Separate sewer junction provided for each lot.	See comment later in this report under Sewer Connection.	Yes
3.6.3.27	Erosion and sediment control plan to be provided.	Condition recommended requiring erosion and sediment control plan to be provided prior to the issue of a Construction Certificate.	Yes
3.6.3.34	All service infrastructure should be underground unless otherwise approved by Council.	Condition recommended requiring satisfactory arrangements certification for electricity and telecommunications infrastructure.	Yes
	All service infrastructure should be installed in a common trench.
	Conduits for the main technology network system should be provided in all streets.
	Conduits are to be installed in accordance with the National Broadband Network Company Limited’s ‘Guidelines for Fibre to the Premises Underground Deployment’.
	Access pits are to be installed at appropriate intervals along all streets.
3.6.3.51	Street trees should be provided along all road frontages generally at a rate of 1 per 20m interval.	Street tree planting for all the adjoining streets shown on approved plans for DA2012/381.	Yes

*DCP 2013: General Provisions*
DCP Objective	Development Provisions	Proposed	Complies
2.7.2.2	Design addresses generic principles of Crime Prevention Through Environmental Design guideline: · Casual surveillance and sightlines · Land use mix and activity generators · Definition of use and ownership · Lighting · Way finding · Predictable routes and entrapment locations	The subdivision layout will provide for additional dwellings with frontage to the existing subdivision roads, which will improve passive surveillance in the area.	Yes
2.3.3.1	Cut and fill 1.0m max. 1m outside the perimeter of the external building walls	Earthworks are currently being carried out at the site in accordance with DA2012/381. No further cut and fill proposed in this application.	Yes
2.3.3.8 onwards	Removal of hollow bearing trees	None proposed to be removed.	Yes
2.6.3.1	Tree removal (3m or higher with 100m diameter trunk and 3m outside dwelling footprint	None proposed to be removed.	Yes
2.4.3	Bushfire risk, Acid sulphate soils, Flooding, Contamination, Airspace protection, Noise and Stormwater	Refer to main body of report.
2.5.3.2	New accesses not permitted from arterial or distributor roads. Existing accesses rationalised or removed where practical	All proposed lots would have access from internal subdivision roads.	Yes
2.5.3.11	Section 94 contributions	Refer to main body of report.

*DCP 2011: Rainbow Beach - Precinct B*
DCP Objective	Development Provisions	Proposed	Complies
OB1	DP1.1 Road layout, open space and commercial and residential generally in accordance with figures.	Yes	Yes
OB2	DP2.1 Development yields achieve those in figure.	The proposed development achieves a lot yield well below the 31-36 dwellings per hectare envisaged for development on the R3 zoned land in the DCP. However, analysis of the overall development within Precinct B by the applicant indicates that over 500 dwellings for the precinct is still expected to be achieved, without increasing the density of this particular site. In the longer term, lots could be consolidated and redeveloped for higher density residential uses.	No, but acceptable
OB2	DP2.2 Higher residential densities are provided in areas close to retail or community activities and public transport nodes.	See comments above.	No, but acceptable
OB5	DP5.1 Cycle ways, share ways and pedestrian facilities in accordance with figure 89.	Relevant facilities to be provided as part of DA2012/381.	Yes
OB6	DP6.1 Development subject to acoustic controls to comply with AS3671.	See comments earlier under clause 7.9 of LEP.	Yes
OB6	DP6.2 Subdivision layout avoids need for acoustic fencing or noise barriers.	No acoustic fencing or noise barriers required for the proposal.	Yes
OB16	DP16.1 All stormwater and groundwater works are to be undertaken in accordance with the recommendations in the Total Water Cycle Management Plan dated July 2012 prepared by King and Campbell.	Capable of complying. See comments under Stormwater later in this report.	Yes
OB20	DP20.1 Development provides; o • an east west main street road as part of the Hilltop Village, o • a public perimeter road, incorporating walking and cycle park for the full frontage of the rainforest, o • a public car park and local park adjoining the beach access path, o • a shared pathway link to the existing formed pathway along Ocean Drive, and o • a road connection to Precinct C.	Relevant facilities provided as part of DA2012/381. Proposal would not affect provision of these items.	Yes

The proposal seeks a variation to provision 3.6.3.2 which requires Torrens title lots be a minimum width of 15m when measured at a distance of 5.5 metres from the front property boundary. Proposed lots 405, 406, 407 are 14.52m wide. Proposed lot 408 is 14.71m wide.

The objectives of this provision are:

- To provide a range of lot sizes to suit variety of dwelling and household types;

- To ensure the lot layout plan reflects the site’s opportunities and constraints.

The variation is considered acceptable for the following reasons:

- The subdivision provides for a mixture of lot sizes and future dwelling types.

- The subdivision layout reflects site opportunities and constraints.

The proposal seeks a variation to provision 3.6.3.3 which suggests that battleaxe allotments are discouraged in Greenfield development. However, Council may consider permitting battleaxe for “infill” development where it is demonstrated that:

- A Torrens Title lot, that is not a battleaxe lot, cannot be achieved; and

- the number of crossovers do not reduce the amenity of the street or on street parking; and

- the impact of noise, dust and headlights on the land owners adjoining the driveway is addressed by the construction of an acoustic fence for the full length of the driveway; and

- addresses privacy between the rear lot and the rear open space of the front lot by the provision of adequate screening, larger lot size and setbacks; and

- extends utilities to the end of the axe handle; and

- there is sufficient space for garbage collection on the frontage.

The proposal can satisfy the above standards.

The objectives of this provision are as follows:

- To ensure subdivision design and road layout responds to the topography of the land and the site constraints.

- To prevent servicing costs (associated with access, utilities and services) from being transferred to the land owner because of poor subdivision design.

- To reduce the impacts of battleaxe allotments in infill areas on adjoining landowners, the streetscape and the final landowner.

- To ensure that development of rear lots of battleaxe allotments does not result in the impacts greater than would be expected from a single dwelling in terms of:

• Traffic generation;

• Noise;

• Privacy;

• Utilities;

• Waste management; and

• Amenity.

The proposal is considered to satisfy the above objectives.

The proposal seeks to vary development provision 5.2.2.1 which attempts to achieve a minimum dwelling site density of 30 dwellings per hectare in the R3 Medium Density Residential Zone. The proposal would result in a density of 10 lots over half a hectare (i.e. 20 lots per hectare).

The relevant objectives are as follows:

· To establish a clear urban structure that maximises the sense of neighbourhood and encourages walking and cycling

· To ensure development in each precinct is delivered in an orderly and efficient manner

· To facilitate the efficient use of land that accommodates the area’s predicted population growth

· To achieve housing choice and residential densities sufficient to support:

- Business and mixed use centres

- Public transport provision

- Infrastructure investment

· To encourage compact urban form and clearly define the new town centre

The proposed subdivision will still result in a mix of low and medium density housing opportunities and is not expected to have a negative impact on the overall desired development yields of Area 15.

Based on the above assessment, the variations proposed to the provisions of the DCP are considered acceptable and the relevant objectives have been satisfied. Cumulatively, the variations do not amount to an adverse impact that would justify refusal of the application.

(iiia) any planning agreement that has been entered into under Section 93f or any draft planning agreement that a developer has offered to enter into under Section 93f:

The landowners entered into Voluntary Planning Agreements for the purposes of Section 93F of the Act in relation to the rezoning of the land. The Seawide Area 14 Stage 1B Planning Agreement between Council and the landowner was executed on 14 September 2011. The landowners agreed to make Development Contributions in accordance with the VPAs in connection with carrying out of development permitted by the LEP.

The VPAs provide for the carrying out of works by the landowners including establishing and maintaining environmental lands, road works, local park embellishment, pedestrian beach access and dedication of land to Council. The agreements also include arrangements for payment of development contributions towards management of environmental lands, administration levy contribution, open space and roads contributions.

iv) any matters prescribed by the Regulations:

New South Wales Coastal Policy:

The proposed development is consistent with the objectives and strategic actions of this policy. See comments earlier under SEPP No. 71 - Coastal Protection.

v) any coastal zone management plan (within the meaning of the Coastal Protection Act 1979), that apply to the land to which the development application relates:

No Coastal Zone Management Plan applies to the subject site.

(b) The likely impacts of that development, including environmental impacts on both the natural and built environments, social and economic impacts in the locality:

The site is located on the southern fringe of the coastal village of Lake Cathie. The coastal village of Bonny Hills is located approximately 1km further south. The site has a frontage onto Ocean Drive along its north western boundary.

Adjoining the site to the north is a stormwater detention basin. Beyond Ocean Drive is residential land with medical centre and electricity substation. Immediately adjoining the site to the south and west is residential land under development. Adjoining the site to the east is Rainbow Beach separated by a corridor of Littoral Rainforest.

The proposal is for an infill subdivision of a development lot previously approved as part of DA2012/381 for a 176 lot subdivision of the land. The development is a logical progression of the earlier approved subdivision. The proposal satisfies relevant planning controls and is not considered to be at odds with the context and setting of the locality.

Roads

The site has road frontage to Shore Break Crescent, a Council-owned and maintained public road with a ‘Local Street’ sealed width of 7m situated within a 15m wide road reserve. The pavement has been designed as part of the parent subdivision (DA 2012/381) to meet ‘Commercial’ standard, to cater for the traffic and servicing needs of a range of possible developments. The road is bordered by kerb and gutter on both sides. A 1.2m wide concrete footpath fronts the development lots, consistent with Council’s policies in providing a path on at least one side of Local Streets.

Traffic and Transport

A Traffic and Access Assessment by Transport & Urban Planning was most recently revised in January 2014 in relation to DA 2012/381 for the parent subdivision. It projected an ultimate development yield for the Seawide land of 70 dwellings in the R1 General Residential zone (one per lot) and 70 dwellings in the R3 Medium Density zone.

The primary concern is that the intersection of Ocean Drive and Seaside Drive, which constitutes the primary access into the Seawide estate, is to be upgraded prior to traffic counts exceeding the capacity of the current intersection. Upgrade of the intersection by Council is provided for in a local Contributions Plan and was expected to become warranted and funded around 2019.

This proposal defines some lot boundaries within the R1 General Residential zone, typically with an average area of 450sqm per lot, which is consistent with the previously assumed density (and thus the traffic generation) of dwellings on the General Residential R1 zone.

The remainder of the site is within the R3 Medium Density Residential zone. The future forms of dwellings in this zone across the precinct are likely to be highly variable, with multiple dwellings per lot. If full development of the R3 zoned land in the Seawide precinct was to occur it appears the previously projected yield of 70 dwellings may be exceeded. However, this proposal does not intensify or restrict the form of future dwellings – potential impacts of traffic intensification will need to be assessed with each future Development Application where buildings are proposed. At that time it may be appropriate to bring forward timing of construction of the intersection.

Roads and Maritime Services (RMS)

The proposal is not of sufficient scale to warrant referral to the RMS under the provisions of the SEPP (Infrastructure) 2007. The proposal does not involve works within the nearby RMS-classified road (Ocean Drive) so referral with any future Roads Act (s138) application is not required.

Site Frontage & Access

All lots directly front Shore Break Crescent with the exception of Lots 401, 402 and 403. 401 and 402 are proposed to share a common laneway. 403 is served by its own laneway. A condition has been recommended to require these access handles to be held in private ownership (i.e. as part of the lots they benefit), to ensure Council is not burdened with the future maintenance of the accesses. A number of other requirements have also been included to ensure adequate provision of services along the laneways, notably including construction of heavy duty driveway crossings to cater for traffic associated with multiple future dwellings. Reciprocal rights of access and easements for services will also be needed with the plan of subdivision.

With reference to the off-street parking standard AS 2890.1, two-way driveways are considered necessary where traffic is likely to exceed 30 trips per hour (or approximately 33 dwellings). None of the driveways is likely to be subject to these volumes of traffic unless for a business such as a childcare centre. As such, two-way flow widths are not required by the proposed consent conditions. Suitability of the lots for such a purpose will need to be assessed under a future DA if proposed and it is noted that the 4.5m and 6m wide proposed laneways are likely to present a constraint given the minimum 6.1m driveway width (clear width between fences) required by AS 2890.1, plus potential need for pedestrian access.

The adjacent drainage lot to the west, north and east of the site (adjoining the boundaries of Lots 401, 403 and 404) exists and is maintained by Council for the public purpose of conveyance and treatment of stormwater. As such, future access to the basin or adjoining maintenance driveway is to be prohibited by a condition of consent.

The Shore Break Crescent reserve including the concrete footpath and street trees (on the opposite side of the road) was constructed under the parent subdivision and no additional embellishments of the street frontage are considered necessary.

Parking and Manoeuvring

Adequate space is provided within each lot to achieve onsite parking and manoeuvring for a range of future housing forms. Due to the type of development, circulation within the rear lots (401, 402, 403) is required to enable vehicles to enter and exit the site in a forward manner and there is considered to be sufficient space to achieve this.

Water Supply Connection

Council records indicate that the development site does not currently have a water service but is capable of being serviced.

Council owned water mains are not to traverse private property. Engineering plans are required to detail the proposed water main extension. In accordance with the Water Supply Policy, hydrants shall be installed to meet the Australian Standard 2419.

Refer to relevant conditions of consent.

Sewer Connection

Council records indicate that the development site is connected to sewer via junction to the existing sewer manhole located in the north western corner of the lot.

Each lot requires an individual connection to sewer. Any existing sewer junctions that will be abandoned shall be capped at the main and manholes must plugged and re-benched if applicable. Details are to be shown on the engineering plans.

Refer to relevant conditions of consent.

Stormwater

The site naturally grades towards the north (rear) and is currently serviced by a connection to the inter-allotment and road stormwater drainage system.

Stormwater from the proposed development is planned to be disposed of via an extension of the inter-allotment drainage through the site. A piped connection (junction) is to be provided to each lot. Overland flow paths are also to be provided for within the site of the proposed drainage easements.

A detailed site stormwater management plan will be required to be submitted for assessment with the S.68 application and prior to the issue of a CC.

In accordance with Council’s AUSPEC requirements, developments are to provide detention facilities to limit peak outflows to pre-development conditions and quality treatment to ensure runoff is adequately cleaned of pollutants (including nitrogen and phosphorus). The downstream public basin has previously been designed to cater for development of this site assuming specific parameters such as the future fraction of impervious (roof and paved) area. The current subdivision proposal does not constitute an intensification for this purpose as the underlying parameter assumptions remain current. Assessment of future building proposals will consider whether the previous assumptions (such as impervious area) are valid or whether additional onsite treatment facilities are required.

Refer to relevant conditions of consent.

Other Utilities

Telecommunication and electricity services are available to the site.

Evidence of satisfactory arrangements with the relevant utility authorities for provision to each proposed lot will be required prior to Subdivision Certificate approval.

Heritage

See comments earlier under clause 5.10 of LEP.

Other land resources

The site is within an established urban context and will not sterilise any significant mineral or agricultural resource.

Water cycle

The proposed development will be unlikely to have any adverse impacts on water resources and the water cycle.

Soils

The proposed development will be unlikely to have any adverse impacts on soils in terms of quality, erosion, stability and/or productivity subject to a standard condition requiring erosion and sediment controls to be in place prior to and during construction.

Air and microclimate

The construction and/or operations of the proposed development will be unlikely to result in any adverse impacts on the existing air quality or result in any pollution. Standard precautionary site management condition recommended.

Flora and fauna

Construction of the proposed development will not require any removal/clearing of any significant vegetation and therefore will be unlikely to have any significant adverse impacts on biodiversity or threatened species of flora and fauna. Section 5A of the Act is considered to be satisfied.

Waste

Satisfactory arrangements are in place for proposed storage and collection of waste and recyclables. No adverse impacts anticipated. Standard precautionary site management condition recommended.

Energy

No adverse impacts anticipated. Lot shapes and orientation are considered satisfactory for the provision of future energy efficient dwellings.

Noise and vibration

See comments earlier under Clause 7.9 of the LEP. Condition also recommended restricting construction to standard construction hours.

Bushfire

The site is not identified as being bushfire prone. However, the applicant submitted the original bushfire report prepared by Australian Bushfire Protection Planners Pty Ltd and dated 23 March 2010 for the parent subdivision. The required Asset Protection Zone identified to the adjoining Littoral Rainforest to the east is nominated on the subdivision plan.

Safety, security and crime prevention

The subdivision layout will provide for additional dwellings with frontage to the existing subdivision roads, which will improve passive surveillance in the area.

Social impacts in the locality

Given the nature of the proposed development and its’ location the proposal is unlikely to result in any adverse social impacts.

Economic impact in the locality

No adverse impacts. A likely positive impact is that the development will maintain employment in the construction industry, which will lead to flow impacts such as expenditure in the area.

Site design and internal design

The proposed development design satisfactorily responds to the site attributes and will fit into the locality. No adverse impacts likely.

Construction

No potential adverse impacts identified to neighbouring properties with the construction of the proposal.

Cumulative impacts

The proposed development is not expected to have any adverse cumulative impacts on the natural or built environment or the social and economic attributes of the locality.

(c) The suitability of the site for the development:

The proposal will fit into the locality and the site attributes are conducive to the proposed development.

Site constraints have been adequately addressed and appropriate conditions of consent recommended.

(d) Any submissions made in accordance with this Act or the Regulations:

No written submissions have been received following public exhibition of the application.

(e) The Public Interest:

The proposed development satisfies relevant planning controls and is unlikely to impact on the wider public interest.

4. DEVELOPMENT CONTRIBUTIONS APPLICABLE

· Development contributions will be required towards augmentation of town water supply and sewerage system head works under Section 64 of the Local Government Act 1993.

· Development contributions will be required under Section 94 of the Environmental Planning and Assessment Act 1979 towards roads, open space, community cultural services, emergency services and administration buildings.

5. CONCLUSION

The application has been assessed in accordance with Section 79C of the Environmental Planning and Assessment Act 1979.

The site is suitable for the proposed development, is not contrary to the public's interest and will not have a significant adverse social, environmental or economic impact. It is recommended that the application be approved, subject to the recommended conditions of consent provided in the attachment section of this report.

Attachments

1 View. DA2017 - 455.1 Revised Subdivision Plan

2 View. DA2017 - 455.1 SOEE

3 View. DA2017 - 455.1 Recommended Conditions as modified

AGENDA Ordinary Council

21/02/2018

Item: 12.06

Subject: Planning Proposal - South Lindfield Urban Release Area - Post Exhibition Review of Submissions

Presented by: Strategy and Growth, Jeffery Sharp

Alignment with Delivery Program

4.5.1 Carry out strategic planning to manage population growth and provide for co-ordinated urban development.

RECOMMENDATION

That Council:

1. Approve the draft South Lindfield Koala Plan of Management Stage 2 (May 2017) subject to the changes referred to in response to the submission from the Office of Environment and Heritage in this report.

2. Submit the revised Koala Plan of Management to the Department of Planning & Environment for the Director, to request that the Minister approve the Koala Plan of Management in accordance with State Environmental Planning Policy No 44 - Koala Habitat Protection.

3. As a result of the consideration of submissions, in relation to the Local Environmental Plan part of the Planning Proposal, proceed with the draft LEP maps:

as included in the second exhibition, including:

(a) Land Zoning Map - Zone R1 General Residential for the land to be zoned Residential

(b) Floor Space Ratio Map - 1:1 Floor Space Ratio for the land to be zoned R1 General Residential

(c) Height of Buildings Map - for the land to zoned R1 General Residential, apply a 11.5 m height limit except for a 20m wide strip on the eastern boundary, where the height limit is to be 8.5 m

and with the omission of the proposed 5m wide E2 Environmental Conservation buffer on No 1 Lindfield Park Road, Port Macquarie.

4. Subject to approval under Item 2 above, take the necessary steps under sections 58 and 59 of the Environmental Planning and Assessment Act 1979 to finalise Local Environmental Plan 2011 (Amendment No 39).

5. Adopt Port Macquarie-Hastings Development Control Plan 2013 (Amendment No 9), to commence upon the date of commencement of LEP 2011 (Amendment No 39).

6. Delegate authority to the General Manager to enter into and execute the six South Lindfield Urban Release Area Planning Agreements under Section 93F of the Environmental Planning and Assessment Act 1979 between Port Macquarie-Hastings Council and:

(a) BaptistCare NSW & ACT

(b) Busways East Pty Ltd, Bhaajayu Pty Ltd, South Pty Ltd and Galbrock Pty Ltd

(c) Lake Innes Residential Pty Ltd

(d) Nigel Bruce Mann, Patricia Marie Mann, Phillip John Mann, Johanna Elizabeth Mann, Philip J Pye, and Brett Christian Pye

(e) Geoffrey Raymond Priest, Rene Carleton Patat as trustees for Scribbly Gums Superannuation Fund, and Scribbly Gums Holdings Pty Ltd

(f) Ross Wayne Ramm and Jennifer Maree Ramm.

4. Thank in writing all those who made a submission for their contribution and provide information on Council’s decision on the matter.

Executive Summary

Over many years Council has been working in conjunction with the landowners to rezone land to the south of Lindfield Park Road, Port Macquarie. The rezoning has been complicated by the need to coordinate multiple landowners and resolve a number of complex issues.

Council has sought to resolve environmental management issues (particularly koala habitat and movement corridors) and infrastructure issues (especially road connections and provision of sewerage services), across the different property ownerships, with the aim of achieving a practical and coordinated outcome in the best interests of the community as a whole.

The proposed rezoning involves:

· mapping amendments to Port Macquarie-Hastings Local Environmental Plan 2011

· site-specific provisions being added to Port Macquarie-Hastings Development Control Plan 2013 (to be identified as Port Macquarie-Hastings Development Control Plan 2013 (Amendment No 9))

· a site-specific Koala Plan of Management [KPoM]

· six Voluntary Planning Agreements.

At its meeting on 15 March 2017, Council resolved to make some amendments to address State Government concerns, and to delete one property, which has unresolved environmental management issues. There has since been further liaison with the State Government, signing of updated Voluntary Planning Agreements by the landowners, and public exhibition.

The main issues raised in the public exhibition are:

· The Office of Environment and Heritage [OEH] requests changes to the draft KPoM, particularly relating to offsite offset planting of koala food trees [KFT]. This also affects Council in relation to KFTs along John Oxley Drive.

· A request to extend a proposed 11.5m height limit across the higher part of the proposed residential zone.

· A request to change a proposed R3 Medium Density Residential zone to R1 General Residential zone, to permit dual occupancies and semi-detached housing.

· A request that Council become involved in the developer's responsibilities of negotiating connections to existing sewer mains.

· A request to permit a dwelling to be sited closer to the Oxley Highway with access off John Oxley Drive rather than Philip Charley Drive.

It is proposed that the following changes be made:

· Amendments to the KPoM, as referred to in response to the submission from the Office of Environment and Heritage in this report

· apply the standard residential LEP controls of R1 General Residential zone, 11.5 m height limit, and 1:1 floor space ratio

· omit a 5m wide buffer to the Oxley Highway on 1 Lindfield Park Road, Port Macquarie - this is being addressed in a separate agenda report 'Planning Proposal Administrative Review - Port Macquarie-Hastings LEP 2011 (Amendment No 29) - Consideration of Submissions'.

It is not proposed that Council negotiate connection to existing sewer mains on behalf of the landowners, nor that Council support the request for an additional dwelling with access to John Oxley Drive, for the reasons described in this report.

The LEP will only be approved once the KPoM is approved by both Council and the Department of Planning & Environment. The proposed DCP provisions and planning agreements will also only take effect once the LEP amendments are finalised.

Discussion

1. Background

This Planning Proposal has a lengthy history, complicated by:

· fragmented ownership

· the need for multiple studies to resolve key issues

· the need to manage Koala habitat in accordance with State legislation, and

· the need to plan for the coordinated provision of infrastructure, particularly roads, sewerage and stormwater management.

The exhibited planning proposal and associated documents make provision for:

· interim and longer term arrangements for sewerage services

· the location of internal road connections and connections to the sub-arterial road of John Oxley Drive

· offsets for koala habitat and movement corridors

· consolidation of vegetation to be conserved for environmental management within the proposed residential area

· appropriate planning for development of four smaller lots west of Philip Charley Drive

· an equitable funding framework for infrastructure and environmental management, using Voluntary Planning Agreements.

This matter was considered in a report to Council at its meeting on 15 March 2017 - refer to Attachment 1. The minutes record:

Councillor Levido declared a Non-Pecuniary, Significant Interest in this matter and left the room and was out of sight during the Council's consideration, the time being 5:46pm.

Ms Michelle Love of Love Project Management, representing a property owner, addressed Council in opposition of the recommendation and answered questions from Councillors.

Mr Anthony Thorne of King and Campbell, representing landowners, addressed Council in support of the recommendation and answered questions from Councillors.

RESOLVED: Intemann/Dixon

That Council:

1. Amend the South Lindfield Urban Release Area Planning Proposal by omitting the Vilro land and resubmit the Planning Proposal to the Department of Planning and Environment for a revised Gateway Determination.

2. Amend the draft Koala Plan of Management for the revised Urban Release Area detailed in the report.

3. Amend the Voluntary Planning Agreements (VPAs) for the South Lindfield Urban Release Area by:

a. Omitting the Vilro land,

b. Providing that the road contributions will be quarantined for the construction costs of the northern 50 metres (measures along the common boundary) of the proposed road between Nos 171 and 175 John Oxley Drive and the intersection at John Oxley Drive,

c. Omitting the requirement for payment of environmental management land contributions.

4. Proceed with exhibition of the South Lindfield Urban Release Area Planning Proposal subject to a revised Gateway Determination and satisfactory resolution of the above matters.

CARRIED: 7/0

FOR: Besseling, Alley, Cusato, Dixon, Hawkins, Intemann and Turner

AGAINST: Nil

2. The site

The urban land release area is outlined on the map below. Excluding NSW Roads and Maritime Services and Council land there are 10 properties in the urban release area.

Note: the exhibited planning proposal also related to a 5m wide strip on the northern side of the Oxley Highway, to which an E3 Environmental Management zone was intended to apply. The proposed rezoning of this strip of land is also addressed in another draft planning proposal - Port Macquarie-Hastings LEP 2011 (Amendment No 29).

To avoid any confusion, it is proposed that Council consider the proposed amendment in Port Macquarie-Hastings LEP 2011 (Amendment No 29) only.

This is addressed in a separate report to this meeting - 'Planning Proposal Administrative Review - Port Macquarie-Hastings LEP 2011 (Amendment No 29) - Consideration of Submissions'.

3. Revisions and first public exhibition

Shortly after the Council consideration in March 2017 a landowner requested some changes to facilitate medium density development upon his land proposed to be rezoned R1 General Residential. It was considered a reasonable proposal, and was extended across the lower parts of all the proposed residential land prior to further processing. This allowed for review at all following stages, including public exhibition and subsequent Council review. The changes affected the land closer to John Oxley Drive, and included:

· Zone R3 Medium Density Residential in lieu of R1 General Residential

· Maximum Floor Space Ratio of 1.5:1 in lieu of 0.65:1

· Maximum building height of 11.5m in lieu of 8.5m.

The southern portion of the proposed residential land is a low ridgeline, and it was considered preferable to allow the vegetation within the proposed area for conservation to be the visually dominant feature along the ridgeline. As discussed below, it is recommended that these changes be modified.

The Dept of Planning & Environment reviewed the revised Planning Proposal (including the post Council meeting changes), and advised that Council could proceed on the existing Gateway Determination as the proposal was substantially the same.

The planning proposal was exhibited from 11 October to 8 November 2017, and 3 submissions were received on behalf of landowners and 4 submissions from government agencies.

4. Review of submissions, further revisions and second public exhibition

Initial assessment of the submissions for this exhibition identified an anomaly - dual occupancies and semi-detached dwellings are prohibited in the R3 Medium Density Residential Zone, and this reduced the range of residential development permitted for land to be zoned R3. The simplest solution would be to revert to the R1 General Residential zone, which would not create problems in terms of likely permissible land uses.

In addition the submissions included requests to extend the 11.5m height limit over all the land proposed to be zoned Residential. Upon review of the vegetation on the ridgeline, it was considered that this is acceptable, given that the proposal includes the conservation and enhancement of trees along part of the southern boundary.

The height limit on the eastern side was proposed at 8.5m for a 20m width, to avoid overshadowing of existing residential development in the Annabella Drive estate.

Further, to avoid overdevelopment of smaller lots, the Floor Space Ratio was adjusted to 1:1.

The changes are illustrated on the following pages.

Advice from the Dept of Planning and Environment indicated that these changes would require re-exhibition. It was decided that a revised proposal would be exhibited for 6 weeks, in accordance with Council policy, as the re-exhibition included the Christmas and New Year period. The revised Planning Proposal was exhibited for 6 weeks from 13 December 2017 to 24 January 2018.

5. Recommended LEP and DCP layout

The full Planning Proposal is 471 pages, with the Appendix containing copies of six Voluntary Planning Agreements comprising 266 pages. Parts of the Planning Proposal are included as Attachments to this report:

Attachment 1 - Planning Proposal Parts 1-9

Attachment 2 - Appendix A - Gateway Determination

Attachment 3 - Appendix B - draft Development Control Plan

Attachment 4 - Appendix D - draft Koala Plan of Management

Attachment 5 - Appendix G - Public Authority comments (as received in 2016).

In summary the proposed new land use zones and Development Control Plan provisions are shown on the map below.

The Planning Proposal also includes further LEP map changes related to:

· Lot Size Map

· Dwelling Opportunity Map - removal of redundant designation for 12 Philip Charley Drive.

· Koala Habitat Map

Options

Council could opt to defer, amend and/or re-exhibit the planning proposal. Council could also undertake further engagement with the affected landowners or other stakeholders.

In the circumstances, given the level of engagement already undertaken to produce a coordinated set of LEP, DCP and KPoM provisions as well as planning agreements with six landowners, it is recommended that Council proceed to finalisation as recommended.

Community Engagement & Internal Consultation

The preparation of the Planning Proposal has involved extensive consultation with the landowners and their consultants.

It has involved numerous internal referrals to specialist Council staff and referrals to relevant State government agencies.

Finally, as summarised above, there have been two periods of community engagement in relation to the planning proposal.

First public exhibition

The first public exhibition of the Planning Proposal was from Wednesday 11 October to Wednesday 8 November 2017 at Council's Port Macquarie office and on HaveYourSay website. The Government agencies who had previously provided comment were notified to allow them to make further comments on the Planning Proposal as modified.

Six submissions were received from 2 development consultancies (on behalf of 5 landowners and 1 potential purchaser) and 4 Government agencies. Two revised submissions were received during the second exhibition, and they are detailed there. Refer Attachments 6 to 9.

The land referred to in the following public submissions is identified below.

Public Submissions

Response

A) Land Dynamics Australia

On behalf of a potential purchaser of

1 Lindfield Park Road (Attachment 7)

(Relates to proposed 5m wide E3 Environmental Management Zone adjoining Oxley Hwy.)

· Land currently devoid of vegetation

· The E3 zone is unnecessary and places an unreasonable extra restriction on any future development

· Objectives of E3 Zone not applicable

· Shouldn't introduce these provisions inconspicuously as part of the South Lindfield Urban Land Release

The exhibited planning proposal for the South Lindfield Urban Release Area included a proposed 5 m wide E3 Environmental Management zone adjoining the northern edge of the Oxley Highway, to match that proposed for the proposed IN2 Light Industrial zone on the southern side of the Oxley Highway.

Subsequently it has been proposed that a 11.5 m building height limit should apply to the existing IN2 area to the north of Oxley Highway as part of Port Macquarie-Hastings LEP 2011 (Amendment No 29).

The landowner has been notified regarding both planning proposals.

To avoid any confusion, it is proposed that Council consider the height of building and proposed E3 zone change for 1 Lindfield Park Road in Port Macquarie-Hastings LEP 2011 (Amendment No 29).

This is addressed in a separate report to this meeting - 'Planning Proposal Administrative Review - Port Macquarie-Hastings LEP 2011 (Amendment No 29) - Consideration of Submissions'.

It is recommended that the proposed E3 zone buffer upon 1 Lindfield Park Road, Port Macquarie, be omitted from this Planning Proposal.

Note that it is intended to maintain the linking E2 zoning across the highway - this aids map legibility.

Discussion on submissions B and C follows under Second exhibition.

Second exhibition

The revised Planning Proposal was exhibited for 6 weeks from 13 December 2017 to 24 January 2018. Two updated submissions were received - refer to Attachments 8 -9 (which include the original submissions).

Public Submissions	Response
B) King & Campbell, for BaptistCare, Mann, Ramm & Busways (Attachment 8)
B1 Proposed R1 General Residential Support this zone.	Noted.
B2 Height of Buildings control Support the proposed 11.5m (& part 8.5m) height limit.	Noted.
B3 Floor Space Ratio control Support the proposed 1:1 ratio.	Noted.
B4 Timing of LEP amendment Seeks advice on timing of completion of the LEP amendment.	As detailed earlier, this is subject to preparation of an amended KPoM and its approval by DP&E.
C) King & Campbell, for H Durant - property adjoining Oxley Hwy (Attachment 9)
C1 Building Envelope Request alternate building location, supported by: · bushfire hazard assessment · some tree removals · some canopy reduction · proposed sites for replanting of koala food trees. This includes relying on access to John Oxley Drive via the adjoining property (in the same ownership).	This relates to draft DCP provisions that nominate the location for a dwelling in the southeast corner of this property. The key reasons for the proposed location of the dwelling are: · It minimises loss of koala food trees · It maximises screening from the Oxley Hwy (77m compared with 44m separation from nearest traffic lane) · It maximises options for onsite effluent disposal with minimal tree loss · It reduces the driveway length from Philip Charley Drive. Refer below for a site plan and photograph showing proximity to highway. The APZ associated with the alternate location in the submission has no vegetation screening from the highway. It is also undesirable to increase the number of dwellings relying on vehicular access onto John Oxley Drive in the location proposed. The amended location for the dwelling envelope and alternate access is therefore not supported.
C2 Comments on Planning Proposal Comments on relevant provisions of the planning proposal. Request amendment of draft DCP provision identifying location for dwelling	Relates to the above - not supported.

Plan relating to Submission C, showing proposed building location compared to proposed location in draft Development Control Plan

Photo relating to Submission C, looking NW across property and showing proximity to Oxley Highway - note truck in background. Submission proposes house placed just to left of two trees, which will be removed.

Government submissions

Government Submissions

Response

Essential Energy

EE1 Update EE requirements

Requests that the Planning Proposal include requirement for access to their electricity corridor.

This will be done.

This is addressed at the development construction stage.

EE2 Further conditions

· Request further consultation if there are any changes.

· Existing encumbrances in favour of Essential Energy should be complied with.

· Activities must be undertaken in accordance with relevant standard.

Agreed.

Office of Environment and Heritage

OEH1 Suggested revisions to KPoM

a) a detailed discussion in Chapter 4 of how the KPoM will operate following commencement of the Biodiversity Conservation Act 2016;

b) a revised Figure 2 to identify the location and extent of "key habitat areas" referred to in the document text;

c) identification of the location and extent of "key habitat areas" in relation to the proposed E2 zones;

d) a revised estimate of koala food trees to be removed by future development facilitated by the proposed rezoning from 34 to 47 to include koala food trees that will be isolated from safe koala usage within the John Oxley Drive road reserve;

e) a quantified estimate of the capacity of the proposed E2 zone to accommodate koala food tree plantings at spacings that will enable full canopy development, whilst retaining all existing native vegetation in the understorey and mid-storey strata;

f) nomination of specific areas outside of the proposed E2 zone that would be suitable for accommodating potential koala food tree offset plantings as part of a fully structured forest in-perpetuity;

g) a description of the proposed planning mechanism by which the proposed koala food tree offset planting areas would be managed for conservation in perpetuity;

h) amendment of Section 5.3.3 to clarify the meaning of the "uncertainty principle";

i) a map to illustrate the full extent of known and potential koala habitat links associated with the planning area; and

j) revision of Section 7.1.2 to describe how the proposed KPoM management measures will enhance the koala habitat links identified in Section 5.3.3.

a. Amend KPoM. Note: the KPoM operates in isolation of the Biodiversity Conservation Act. Any offsets under the Biodiversity Conservation Act will be in addition to those in the KPoM.

b. Amend KPoM. Include koala habitat map.

c. Amend KPoM. Above map to also show proposed E2 zone area.

d. Amend KPoM. (see also comments for f and g below)

e. The OEH has accepted a 1:1 ratio of compensatory planting in this case, provided the compensatory planting is in public ownership, as proposed in the voluntary planning agreements with landowners. The OEH has also suggested that koala food trees in the north of the South Lindfield area should be removed to limit the likelihood of koala movement through future developed areas, which will pose a threat to koalas (e.g. due to road traffic and dogs).
Council has coordinated the provision of an E2 Environmental Conservation zone, which consolidates existing koala habitat in the centre of the South Lindfield area, across multiple landowners. This area provides some opportunity for supplementary koala food trees in compensation for trees that are proposed to be removed in the north of the South Lindfield area and is to be managed in public ownership to guarantee a long term conservation outcome.
The E2 zoned area may not provide sufficient area to replace all Koala Food Trees removed and Council has acknowledged that it is a compromise outcome in terms of offsets. Nevertheless, it does provide a coordinated solution, in a highly fragmented, infill area and it separates development and conservation outcomes. In the circumstances, given the difficulty that Council has experienced over many years in seeking to coordinate an environmental management outcome across multiple landowners, it is recommended that Council request that the Director accept the proposed, publicly owned compensatory habitat as sufficient compensation in this case.

f. Council is not in a position to identify an additional offset area with guaranteed long term management mechanisms to compensate for the loss of approximately 13 KFTs in the John Oxley Drive Road Reserve. These trees should be removed in conjunction with future road widening of John Oxley Drive, however, there is currently no certainty regarding the timing of these roadworks. It is proposed that Council address compensation for the loss of the trees separately, in accordance with Part 5 of the Environmental Planning and Assessment Act and in accordance with DCP 2013 Clause 2.6.3.3 c), which requires replacement trees, where they are removed on public land. To limit the potential for koala movement to these trees in the interim, it is proposed that the KPoM and DCP for South Lindfield will be amended to require that development on South Lindfield properties will need to incorporate fencing to restrict south to north koala movement at subdivision stage.

The location of offset trees would be preferenced to public land within the home range of the local koala population that is being impacted.

g. See f) above.

h. This reference should be to the “Precautionary Principle”.

i. Habitat links are shown in Figure 5 in the KPoM.

j. See i) above.

Subject to Council approval, the proposed changes to the KPoM will be made by Council prior to referral to the DP&E.

OEH2 Offset planting investigations

Undertake further investigation and assessment of the proposed contingency options for koala food tree offset planting sites and revise the KPoM to demonstrate their feasibility.

See comments above.

OEH3 Community Land intentions

Amend the Planning Proposal to detail council's intention to declare and manage the portion of land dedicated to council as "community land containing significant natural features" in accordance with Section 36C of the Local Government Act 1993.

This can be done.

OEH4 Verify no clash between E2 & APZ

Review the planning proposal and supporting documents to ensure that there are no inconsistencies regarding the requirement to locate all proposed bushfire APZs and other bushfire reduction measures outside of the proposed E2 zone.

There is no expected inconsistency.

Rural Fire Service

RFS1 Planning for Bushfire Protection 2006

Development should meet the specifications & requirements of PBP 2006.

This will be addressed at DA stage.

RFS2 Bushfire-prone areas include grasslands

Grasslands are now a hazardous vegetation category.

This will be addressed at DA stage.

RFS3 Use APZ in AS 3959-2009

APZ specifications in AS 3959-2009 supersede those in PBP 2006.

This will be addressed at DA stage.

Roads and Maritime Services

RMS1 Connection to Oxley Highway

Assess impact of any increase in peak hour traffic movements generated by the release area at the Phillip Charlie Drive and John Oxley Drive roundabout in relation to safety and efficiency of connections to the Oxley Highway.

This has been assessed.

RMS2 Increased demand on transport facilities

Including pedestrian, cyclist and public transport.

This is included in Council's considerations.

RMS3 Required transport infrastructure

To be identified in the DCP and Developer Contributions Plan.

This has been addressed in the DCP and VPAs

Planning & Policy Implications

The planning for the South Lindfield area is consistent with the Urban Growth Management Strategy 2011. The process of preparing and exhibiting a Planning Proposal is specified by the Environmental Planning and Assessment Act. The process is also governed by the requirements of the Department of Planning’s Gateway determination, including timeframes for completion.

Financial & Economic Implications

Work on this Planning Proposal has largely sought to have the landowners meet the costs of development. Council has funded some support studies to progress the investigation, along with staff time associated with managing the planning process.

Given the uneven distribution of management costs for the environmental lands, Council has agreed to take earlier responsibility for these costs of $82,738 over the first 17 years of maintenance of the land. Note that Council would be responsible for the maintenance of this land in the long-term in any case.

The proposed roundabout at the intersection of John Oxley Drive, Holland Close and extension of Annabella Drive is partially funded by 'quarantining' the relevant regional road contributions from this release area. However, a funding shortfall may remain for the proposed roundabout - if so funding of this work would need to be prioritised by Council as part a future Operational Plan/budget process.

Attachments

1 View. Council 15/03/2017 Item 13.04 Minutes and Agenda

2 View. Revised Planning Proposal Parts 1-9 (December 2017)

3 View. Planning Proposal App A - Gateway Determination

4 View. Planning Proposal App B - Draft Development Control Plan

5 View. Planning Proposal App D - Draft Koala Plan of Management

6 View. Planning Proposal App G - Govt Comments (mid 2016)

7 View. Submission - A. Land Dynamics Australia

8 View. Submission - B. King & Campbell (4 properties)

9 View. Submission - C. King & Campbell (Durant)

10 View. Submission - Essential Energy

11 View. Submission - Office of Environment & Heritage

12 View. Submission - Rural Fire Service

13 View. Submission - Roads & Maritime Services

AGENDA Ordinary Council

21/02/2018

Item: 12.07

Subject: Planning Proposal - 2017 Administrative Review of Port Macquarie-Hastings LEP 2011

Presented by: Strategy and Growth, Jeffery Sharp

Alignment with Delivery Program

4.5.1 Carry out strategic planning to manage population growth and provide for co-ordinated urban development.

RECOMMENDATION

That Council:

1. Prepare a Planning Proposal pursuant to section 55 of the Environmental Planning and Assessment Act 1979, for the amendment of provisions of Port Macquarie-Hastings Local Environmental Plan 2011, in relation to the 6 Issues as generally described in this report.

2. Forward the Planning Proposal to the NSW Department of Planning and Environment requesting a Gateway Determination pursuant to section 56 of the Environmental Planning and Assessment Act 1979.

3. Request that the Secretary of the Department of Planning & Environment issue a Written Authorisation to Council to Exercise Delegation of the plan making functions under section 59 of the Act in respect of the Planning Proposal.

Executive Summary

Council continually monitors the operation of Port Macquarie-Hastings Local Environmental Plan 2011 [LEP] to identify necessary refinements and adjustments to the LEP text and maps. This report considers a number of proposed administrative refinements to Port Macquarie-Hastings Local Environmental Plan 2011.

The issues are:

1. Land Use Table Zone - Industrial retail outlets - align with permissibilities of Industry and Rural industry

2. Clause 4.1 Minimum subdivision lot size - battle-axe lots provision

3. 14 Misty Vale Way, Hollisdale - minimum lot size

4. Bain Park, Wauchope - correct zone boundary

5. Limeburners Creek Nature Reserve and Council acquisitions, North Shore - update Land Reservation Acquisition Map

6. 24 Yaluma Drive, Port Macquarie – rezoning from E3 Environmental Management to R1 General Residential, and associated changes to other map series.

This report contains more detail on each of the proposed administrative amendments and recommends that Council prepare a Planning Proposal and forward to the Department of Planning and Environment requesting a Gateway Determination.

Discussion

Details of the proposed amendments are provided below.

1. Land Use Table Zone - Industrial retail outlets

An Industrial retail outlet is defined as

… a building or place that:

(a) is used in conjunction with an industry or rural industry, and

(b is situated on the land on which the industry or rural industry is located, and

(c) is used for the display or sale (whether by retail or wholesale) of only those goods that have been manufactured on the land on which the industry or rural industry is located,

but does not include a warehouse or distribution centre.

In LEP clause 5.4, the retail floor area is restricted to the lesser of:

(a) 43% of the gross floor area of the industry or rural industry located on the same land as the retail outlet, or

(b) 400 square metres.

At present, the permissibility of the land uses for relevant zones is:

Relevant Zones	Industry			Rural industry	Industrial retail outlet
Relevant Zones	General	Heavy	Light	Rural industry	Industrial retail outlet
RU1 Primary Production	N	N	N	Y	N
RU2 Rural Landscape	N	N	N	Y	N
RU5 Village	N	N	Y	N	N
B1 Neighbourhood Centre	N	N	N	N	N
B2 Local Centre	N	N	N	N	Y
B3 Commercial Core	N	N	N	N	N
B4 Mixed Use	N	N	Y/N	N	Y
B5 Business Development	N	N	Y	N	Y
B7 Business Park	N	N	Y	N	N
IN1 General Industrial	Y	N	Y	Y	Y
IN2 Light Industrial	N	N	Y	Y	Y
IN3 Heavy Industrial	Y	Y	N	N	N
IN4 Working Waterfront	Y	N	Y	N	N

If an industrial retail outlet is linked with an industry or rural industry, then it is appropriate to align their permissibility in the Land Use Table. It is therefore appropriate to make industrial retail outlets also permissible with consent within Zone Nos RU1, RU2, RU5, B7, IN3 and IN4, which all permit either Industry or Rural Industry with consent.

In each of these zones, the suitability of any proposed Industrial Retail Outlet would be assessed as part of a development application and would only be considered “in conjunction with” an industry or rural industry, consistent with the definition of Industrial Retail Outlet.

Conversely, there seems no reason to make them permissible in Zone B2 Local Centre, which has a retail focus and does not permit either Industry or Rural Industry with consent. It is therefore proposed to prohibit industrial retail outlets within Zone No. B2.

Proposal: That the Land Use Table be amended in relation to industrial retail outlets:

(a) to be permissible with consent in Zones RU1 Primary Production, RU2 Rural Landscape, RU5 Village, B7 Business Park, IN3 Heavy Industry and IN4 Working Waterfront,

(b) to be prohibited in Zone B2 Local Centre.

2. Clause 4.1 Minimum subdivision lot size - battle-axe lots provision

The Standard Instrument clause does not alter the minimum lot size requirement where the lot relies on a 'battle-axe' access. Potentially consent could be sought for a lot which meets the required minimum even though the usable area is far smaller than expected. While it may not be necessary to provide the usual front setback, it is appropriate to ensure the enclosed lot contains adequate site area.

It is proposed to add a requirement found in the LEPs of some other Councils.

Proposal: That clause 4.1 be amended by adding the following:

(4A) If a lot is a battle-axe lot or other lot with an access handle, the area of the access handle is not to be included when calculating the size of the lot for the purposes of this clause.

3. 14 Misty Vale Way, Hollisdale - minimum lot size

The relevant parcel, Lot 10 DP 1006795 (as outlined red on the map below), was previously within a State Forest, but is now privately owned and is zoned RU2 Rural Landscape. The Lot Size Map does not apply a minimum lot size on this parcel. It is 4.9 ha within an area where a 100 ha minimum applies to adjoining land.

Immediately to the east fronting Pappinbarra Road are the Hollisdale Rural Fire Service shed and the Hollisdale Hall.

Proposal: That the Lot Size Map be amended for Lot 1 DP 1006795, 14 Misty Vale Way, Hollisdale, by applying a minimum lot size of 100 ha.

4. Bain Park, Wauchope - Correct zone boundary

There are anomalies with the zoning of the northern portion of Bain Park, as shown on the map below. The red outline and text identifies the proposed changes, involving Zones B2 Local Centre and RE1 Public Recreation. The area labelled RE1 is currently zoned B2, and the footpath area labelled B2 is currently zoned RE1.

The Floor Space Ratio Map requires associated changes being 1:5:1 (code S1) for the proposed Zone B2 and no FSR for the proposed Zone RE1.

Proposal: That the Land Zoning Map and the Floor Space Ratio Map be amended as described for Bain Park, High Street, Wauchope.

5. Limeburners Creek National Park and Council acquisitions, North Shore

Recently the NSW National Parks and Wildlife Service purchased an area identified for acquisition on the LEP 2011 Land Reservation Acquisition Map. This land is to be added to Limeburners Creek Nature Reserve. It is appropriate that the designation for acquisition be removed. In addition, Council has recently acquired 2 lots in the adjoining Queens Grant subdivision - it would be appropriate to also remove the acquisition designation for these lots. The relevant lands are shown on the map below.

This leaves 11 lots in the Queens Grant subdivision designated for future acquisition by Council. (This was considered by Council at its 20 July 2016 meeting.)

Note that the label on the Land Reservation Acquisition Map refers to the reservation purpose and the current land use zone code, while the associated text in clause 5.1 of LEP 2011 identifies the relevant acquiring authority.

Proposal: That the Land Reservation Acquisition Map be amended in the North Shore locality by removing:

(a) from Lots 69 & 70 DP 219719, Lot 27 DP 221558 and Lots 67 & 68 DP 754451 - the feature labelled 'National Park (E1)', and

(b) from 56 & 57 DP 219719 - the feature labelled 'Environment Protection (E2)'.

6. 24 Yaluma Drive, Port Macquarie

This 0.47 ha property (outlined in red) is zoned E3 Environmental Management with a minimum lot size of 0.5 ha, no maximum floor space ratio and a maximum building height limit (as applies to adjacent land) of 8.5 m. This zoning was initially applied to facilitate a ridge-top line of trees, though this privately-owned lot is below the most prominent section of the ridgeline. Retention of these provisions does not achieve the original objectives, and it is proposed that standard residential controls be applied.

Proposal: That for Lot 31 DP 835708 No 24 Yaluma Drive, Port Macquarie, the LEP 2011 Maps be amended as follows:

· Land Zoning Map - Zone R1 General Residential

· Lot Size Map - minimum lot size of 450 sqm

· Floor Space Ratio Map - maximum 0.65:1.

Options

Council could choose to omit or modify the Planning Proposal for any of the issues. Council could also choose not to proceed with the preparation of a Planning Proposal at this time. As each of the matters are considered to be minor administrative amendments to LEP 2011, it is recommended that Council proceed with the preparation of a Planning Proposal to amend LEP 2011 for Issues 1 to 6, as described in this report.

Community Engagement & Internal Consultation

There has been internal consultation with relevant Council staff in the preparation of this report.

The process for amending the LEP is subject to the 'Gateway determination' from the Department of Planning and Environment. The Gateway determination specifies community engagement requirements for the planning proposal. It is therefore proposed to undertake public exhibition, as specified in the Gateway determination and that a further report be presented to Council if any objections are received.

Planning & Policy Implications

These proposed minor amendments will facilitate future development through the fine-tuning of the LEP provisions.

Financial & Economic Implications

The preparation of administrative amendments to LEP 2011 is identified in Council’s current Operational Plan.

The proposed LEP amendments apply to land owned by Council at Bain Park, Wauchope and within the Queens Grant Estate, North Shore.

There are no expected economic impacts or financial impacts for Council in the proposed LEP amendments.

It is anticipated that there will be cost savings to the community in the future due to the removal of potential complications to development or simplification of the planning controls.

Attachments

Nil

AGENDA Ordinary Council

21/02/2018

Item: 12.08

Subject: Planning Proposal Administrative Review - Port Macquarie-Hastings LEP 2011 (Amendment No 29) - Consideration of Submissions

Presented by: Strategy and Growth, Jeffery Sharp

Alignment with Delivery Program

4.5.1 Carry out strategic planning to manage population growth and provide for co-ordinated urban development.

RECOMMENDATION

That Council:

1. Take the necessary steps under sections 58 and 59 of the Environmental Planning and Assessment Act 1979 to finalise Port Macquarie-Hastings Local Environmental Plan 2011 (Amendment No 29) as attached.

2. Thank in writing all those who made a submission for their contribution and provide information on Council’s decision on the matter.

Executive Summary

In February 2017 Council considered a report proposing to commence a planning proposal in relation to 15 minor amendments to Port Macquarie-Hastings Local Environmental Plan 2011. Following consultation with the Department of Planning & Environment and relevant parties, the list was reduced to 13 items when placed on public exhibition in November 2017. The 13 matters are:

1. Clause 4.1A Exceptions to minimum lot sizes for certain residential development - minor change to the wording of the clause

2. Clause 7.6 Coastline hazards - addition of an advisory note regarding Codes SEPP

3. Schedule 1 Additional Permitted Uses - add Emergency services facility at Town Beach

4. Schedule 3 Complying Development - removal of items covered by the Codes SEPP

5. Dictionary - add definition of Australian Height Datum

6. No 1 Cedar Close, Wauchope - rezone to R1 General Residential, and associated changes to other map series

7. Kendall B1 Neighbourhood Centre zone - adjustment to zone boundary

8. Highway Service Centre, Thrumster - remove minimum lot size

9. Lindfield Park Road, Port Macquarie - IN2 Light Industrial: apply a height of building limit and apply a Zone E3 buffer to Oxley Highway

10. Majestic Drive, Port Macquarie - align LEP map boundaries with lot boundaries

11. Windmill Hill reserve, Port Macquarie - rezone from E2 Environmental Conservation to RE1 Public Recreation & E2 Environmental Conservation

12. Crestwood Drive, Port Macquarie - align LEP map boundaries with development lot boundaries

13. St Lucia Place, Bonny Hills - for land adjoining Ocean Drive rezone from RU1 Primary Production to R1 General Residential and associated changes to other map series.

Details of the two matters removed are provided in the following report.

Four (4) submissions were received during public exhibition of the Planning Proposal, with three requesting changes.

It is recommended that the Planning Proposal to amend the Port Macquarie-Hastings LEP 2011 in relation to the above listed 13 items be supported by Council and finalised in accordance with Section 59 of the Environmental Planning and Assessment Act 1979.

Discussion

Background

Council continually monitors the operation of the Port Macquarie-Hastings Local Environmental Plan 2011 to identify necessary refinements and adjustments to the LEP text and maps. A report to Council on 15 February 2017 recommended amendments relating to 15 issues - refer to Attachment 1. The meeting minutes record:

Councillor Levido declared a Non-Pecuniary, Significant Interest in this matter and left the room and was out of sight during the Council's consideration, the time being 8:12pm.

RESOLVED: Intemann/Griffiths

“That Council:

1. Prepare a draft planning proposal as described in this report, pursuant to section 55 of the Environmental Planning and Assessment Act 1979, for the amendment of the provisions of Port Macquarie-Hastings Local Environmental Plan 2011, in relation to the 15 Issues, as generally described in this report.

2. Forward the draft planning proposal to the Department of Planning and Environment for a Gateway Determination, and exhibit the proposal in accordance with that determination, pursuant to sections 56 - 58 of the Act.

3. Request that the Director General of the Department of Planning & Environment issue a Written Authorisation to Council to Exercise Delegation of the plan making functions under section 59 of the Act in respect of the planning proposal.”

CARRIED: 8/0

FOR: Besseling, Alley, Cusato, Dixon, Griffiths, Hawkins, Intemann and Turner

AGAINST: Nil

Councillor Levido returned to the meeting, the time being 8:14pm.

Items removed from the Planning Proposal

a. Public Reserve, Evans St, Lake Cathie - rezone part to RE1 Public Recreation

One of the issues originally included in the draft Planning Proposal related to a 10m wide strip of public reserve adjoining the Lake Cathie Bowling and Recreation Club, and zoned RE2 Private Recreation rather than RE1 Public Recreation. This arose from a proposed expansion of the club from many years ago, which had not taken place. The draft Planning Proposal originally included the proposed rezoning of the 10m wide strip to RE1 Public Recreation.

Following contact from the Club, there was an on-site meeting involving representatives of the Club, Dept of Industry - Lands, and Council. The Club is again exploring possible expansion, and it was agreed to discontinue this proposed amendment to the LEP until the outcome of the proposed expansion is clearly known. As the reserve is Crown land, it was also agreed that initially the Club would liaise with Dept of Industry - Lands over details of impacts on the reserve.

b. Land Use Table Zone RU1 Primary Production - Agriculture subtypes

The Standard Instrument (LEPs) Order 2006 includes a direction that 'Intensive livestock agriculture' and 'Intensive plant agriculture' must be listed as permissible (with or without consent) within the RU1 Primary Production zone. PMH LEP 2011 lists 'agriculture' as permitted with consent, and this encompasses those sub-types.

It was thought that retaining the subtypes in the Land Use Table for Zone RU1 may create confusion for interpretation of the Land Use Table, and hence it was proposed to remove these terms. The Department of Planning & Environment advised that the Parliamentary Counsel’s Office insists that the direction requires that the subtypes must be explicitly listed.

On this basis, this issue was removed from the list of amendments. There is no effect on land use permissibility, only on ease of consistent interpretation of the Land Use Table.

Progression of the Planning Proposal

With the exclusion of the two issues mentioned above, the planning proposal process has included:

· Issue of the Department of Planning & Environment Gateway Determination on 29 September 2017

· Consultation with relevant Government authorities

· Public exhibition for 3 weeks commencing in November 2017 - a copy of the exhibited Planning Proposal is provided as Attachment 2.

There have been objections to 3 issues and support for one other. The submissions are considered below in the Community Engagement & Internal Consultation section.

Options

This Planning Proposal relates to 13 separate issues as outlined in the Executive Summary. Council could omit or amend any of the Issues in the exhibited draft planning proposal.

Following review of the planning proposal consideration of the submissions, it is recommended that the only change be to remove the zoning change part of Issue 9, as it duplicates a change in the South Lindfield Urban Release Planning Proposal, which is also the subject of a report to this Ordinary Council meeting.

Community Engagement & Internal Consultation

The Planning Proposal was publicly exhibited from 29 November to 20 December 2017 at Council's three Offices and on Council's HaveYourSay website. Four (4) private submissions were received, relating to Issues 2, 9, 11 and 12 as outlined in the Executive Summary (refer to Attachments 3 to 6 respectively).

Issue 2 - Clause 7.6 Coastline hazards - add advisory note re Codes SEPP

Description

Clause 1.19 of the Codes SEPP states that some types of Complying Development are generally not permitted on certain land, including land identified in an environmental planning instrument as:

· buffer area – e.g. LEP 2011 clause 7.9 'Subject to acoustic controls'

· ecologically sensitive area – e.g. LEP 2011 clause 7.5 'Koala habitat area'

· affected by a coastal erosion hazard – e.g. LEP 2011 clause 7.6 'Coastal erosion risk'.

In relation to the first two, the relevant LEP clause includes an advisory note to explicitly alert readers to this restriction on complying development. There are some other LEP provisions similarly affected where no note is provided, as these are more common (eg acid sulfate soils).

In this case the coastline hazard has limited coverage (92 properties in Chepana St, Illaroo Rd, Kalang St, Bundella Ave, Kywong St and Middle Rock Rd, Lake Cathie), and the concern is that this may be overlooked. Hence it is considered desirable to add a note to the LEP text to highlight the associated restriction on complying development.

Submission - John Massey

'The subject SEPP is a fact and will be notified on Planning Certificates and will override the LEP. To add an additional note is not needed and will cause unnecessary additional concern having regard to your previous history on coastal risk notifications on the subject land.' (Key comments)

Response

The proposal is an advisory note - it doesn't alter the operation of the LEP. It is considered important that readers of the LEP are made aware that the LEP provision restricts complying development under the Codes SEPP.

It is recommended that the advisory note be added to clause 7.6.

Issue 9 - IN2 Light Industrial Zone, Lindfield Park Road, Port Macquarie

Description Proposed zoning - E3 added

The Thrumster urban release area includes an area zoned IN2 Light Industrial on the north-western corner of Oxley Highway and Lindfield Park Road. Being the approach to Port Macquarie, it is important that any development of the site does not visually detract from the entrance into Port Macquarie. This requires adequate landscape screening on the boundary to the Oxley Highway, which is elevated above the property. As well, maximum building height limits should apply to any development.

Chapter 4.5 Thrumster of DCP 2013 contains an Objective 4.5.14 of 'To minimise the potential visual impact of development on views from the Oxley Highway'.

However, the DCP operates as a guideline only and a minimum 5m wide E3 Environmental Management zone is considered appropriate in this case to provide greater certainty that a landscape buffer will be implemented in conjunction with future industrial development.

This approach is consistent with other visually sensitive locations, including a zone buffer along the eastern boundary of the Sancrox Industrial zone on the frontage to the Pacific Highway.

It was proposed in the exhibited planning proposal to:

· apply a 5 m wide E3 Environmental Management zone buffer immediately adjoining the highway as a minimum for the landscape screen

· apply a maximum building height limit of 11.5 m over the land.

Submission summary - Land Dynamics Australia, regarding the larger southern lot

The E3 Zone is not required and the area is devoid of vegetation. It is unnecessary and unreasonably places extra restriction on any future development of the site, such as preparation of a Vegetation Management Plan or compliance with additional controls or development restrictions on this portion of the land. This results in extra requirements and costs, to achieve the same result as currently envisaged by the in-force DCP.

Response

(It is noted that this is also referred to in the report on the South Lindfield Urban Release Area. That report proposes that it be dealt with here.)

The current zoning of 1 Lindfield Park Road is IN2 Light Industrial, which was introduced by Council as part of the Thrumster Urban Release Area (URA).

The planning for the Thrumster URA also included the introduction of Development Control Plan (DCP) provisions, which includes a requirement for provision of a landscape buffer along the southern boundary of 1 Lindfield Park Road.

Following recent changes to State planning, councils have been advised that DCP provisions are guidelines only.

It is therefore important that Council establish a minimum 5m wide E3 zone buffer along the southern boundary of 1 Lindfield Park Road, to provide increased certainty that a landscape buffer will be provided in conjunction with any future industrial development.

The zone change for 1 Lindfield Park Road is consistent with the proposed zone change on the southern side of the Oxley Highway in the South Lindfield area. It is also consistent with the approach taken in other areas, including along the Pacific Highway frontage of the new Sancrox Industrial area.

The provision of a landscape screen is particularly important in this case because there is very little space and no certainty that any landscape screening can be provided within the Highway road reserve. The Highway is elevated above the adjoining industrial land and carries large volumes of traffic on the major road entry to Port Macquarie.

The E3 Zone Objectives include 'To protect, manage and restore areas with special … aesthetic values'.

The proposed changes to the LEP have not been done “inconspicuously”, as claimed in the submission. Council staff have pro-actively notified the landowner of the proposed changes, including notification of the planning proposal.

Recommendation: that the proposed E3 Environmental Management zone be retained as exhibited, as it flags the need for a landscape screen to the highway.

View of property from Oxley Highway. Foreground vegetation is subject to RMS maintenance.

Issue 11 - Windmill Hill Reserve, Port Macquarie - rezone to RE1 and E2

Description Proposed zoning

The subject land is under Council's management, and is mostly Crown Land. It is currently zoned E3 Environmental Management under LEP 2011, which generally is used for privately owned land upon which some low impact activities can occur.

The public coastal lands are generally zoned E2 Environmental Conservation or RE1 Public Recreation, based on whether those zone descriptors identify the primary use or management of the land. In this case it was considered appropriate to replace the existing E3 Zone with an E2 Zone. However, to reflect the current grassed and mown areas used for passive recreation and sightseeing, it was proposed to apply a RE1 zone for those areas.

Submission summary - Land Dynamics Australia

Land Dynamics Australia has submitted that the full area should be rezoned E2, given that the RE1 Zone permits a 'larger number of opportunities within the RE1 zone, many that are not compatible to the specifics of the Windmill Hill Reserve such as caravan parks, camping grounds and recreation facilities'.

Response

The relevant Zone Objectives in the Land Use Table are:

· RE1 Public Recreation

o To enable land to be used for public open space or recreational purposes.

o To provide a range of recreational settings and activities and compatible land uses.

o To protect and enhance the natural environment for recreational purposes.

· E2 Environmental Conservation

o To protect, manage and restore areas of high ecological, scientific, cultural or aesthetic values.

o To prevent development that could destroy, damage or otherwise have an adverse effect on those values.

o To protect coastal wetlands and littoral rainforests.

o To protect land affected by coastal processes and environmentally sensitive land.

o To prevent development that adversely affects, or would be adversely affected by, coastal processes.

o To enable development of public works and environmental facilities where such development would not have an overall detrimental impact on ecological, scientific, cultural or aesthetic values.

Based on the Zone Objectives, the use of the RE1 zone is considered more for the current grassed and mown areas to permit these areas to be used for public open space or recreational purposes.

The public management of the land and “community” classification of the land under the Local Government Act will help to ensure that incompatible land uses will not take place. It is recommended that the RE1 Public Recreation and E2 Environmental Conservation be applied as exhibited.

Issue 12 - Crestwood Drive, Port Macquarie - re-align LEP map boundaries

Description

As subdivision has proceeded in the south-western section of Crestwood Drive, the final road alignment (including batters) has not aligned with the zone boundary, in some instances most likely due to differing interpretations of old hand-drawn zone mapping. This is compounded by variations between the Land Zoning Map, Lot Size Map, Floor Space Ratio Map and Height of Buildings Map. The red outline shows the outer extent of the affected land, and relates to two consents for subdivision plus a small portion of an adjoining parcel to the west mostly zoned E2 Environmental Conservation.

The outer boundary of the R1 General Residential zone encompasses the perimeter road, adjoining embankment, a drainage reserve and a small park connecting to the Googik Track. The residue land on the southern side zoned RU1 Primary Production is subject to a foreshadowed separate rezoning request. Corresponding amendments are made to the Lot Size Map, Floor Space Ratio Map and Height of Buildings Map as appropriate to land within the red outline.

Submission 1 - King & Campbell, for the northern subdivision parcel

Express support for the proposed LEP amendments.

Response

Noted.

It is recommended that the Land Zoning Map, Lot Size Map, Floor Space Ratio Map and Height of Buildings Map be amended as exhibited.

Consultation with Government authorities

Preparation of the Planning Proposal involved consultation with relevant Government agencies, and their responses are in Appendix D of the exhibited Planning Proposal. At the commencement of the public exhibition they were advised of Councils' responses to their comments and of the exhibition and three responses were received - refer to Attachments 7 to 9. In summary:

1. Department of Industry – Crown Lands & Water

No objection.

2. Office of Environment and Heritage

Appreciate Council's response to their submission.

3. Roads and Maritime Services

No objection.

Planning & Policy Implications

There are no major planning and policy implications in relation to this report.

These proposed minor amendments will

· facilitate future development through the fine-tuning of the LEP provisions

· aid public understanding of the planning controls.

Financial & Economic Implications

The preparation of administrative amendments to LEP 2011 is identified in Council’s current Operational Plan. There are no expected economic impacts or financial impacts for Council in the proposed LEP amendments.

It is anticipated that there will be cost savings to the community in the future due to the removal of potential complications to development or simplification of the planning controls.

Attachments

1 View. Report to Council 15 February 2017

2 View. Planning Proposal as exhibited

3 View. Submission on Issue 2 - John Massey

4 View. Submission on Issue 9 - Land Dynamics Australia

5 View. Submission on Issue 11 - Land Dynamics Australia

6 View. Submission on Issue 12 - King & Campbell

7 View. Submission from Crown Lands and Water

8 View. Submission from Office of Enviroment and Heritage

9 View. Submission from Roads and Maritime Services

AGENDA Ordinary Council

21/02/2018

Item: 12.11

Subject: Open Space Contributions Plan

Presented by: Strategy and Growth, Jeffery Sharp

Alignment with Delivery Program

4.5.2 Plan for infrastructure that supports population growth.

RECOMMENDATION

That Council place the Draft Open Space Contributions Plan 2018 on public exhibition from 1 March 2018 until 11 April 2018.

Executive Summary

A new draft Open Space Contributions Plan 2018 has been prepared for open space facilities across the local government area in accordance with the provisions of the Environmental Planning and Assessment Act 1979. The draft plan was identified as an action from the 2016/17 and 2017/18 Operational Plan and the draft Urban Growth Management Strategy. The draft plan will replace the current open space plan and follows on from background work including the Recreation Needs Study 2015 and Recreation Action Plan in 2017.

Revised open space development contributions rates are proposed under the draft plan and if adopted would apply to development consents determined after the plan is adopted.

Discussion

Council levies development contributions under provisions of the Environmental Planning and Assessment Act 1979 (as amended) (the Act) and the Environmental Planning and Assessment Regulation (the Regulation) for the capital costs of community facilities that will serve new development. The preparation of contributions plans and voluntary planning agreements that provide for the levying of development contributions are also governed by the Act and Regulation. Note: from 1 March the Act will be amended to provide different numbering for the sections of the Act. Section 94 will become Section 7.11.

Council’s current suit of development contributions plans that apply to new residential development include open space, major roads, community facilities and administration levy plans. Water and Sewerage headwords developer charges are also levied under Development Servicing Plans.

Preparation of the draft Open Space Contributions Plan 2018 (draft plan) builds on recent background studies including the Recreation Needs Study 2015 and Recreation Action Plan in 2017. The draft plan will provide an up to date forward works program that reflects current works estimates.

Contribution rates in the draft plan have been calculated by apportioning the costs of works equitably between all those who will benefit from the infrastructure, including any existing population. Where it can be established that the new facility is solely required by new development, apportionment will be 100% i.e. the new facility will be fully funded from development contributions. There are two components to the total Open Space Contributions. A district rate for facilities that serve the broader Local Government Area (LGA) (such as sporting fields) and a local contribution for facilities (such as local parks) that serve specific local catchments.

A comparison of existing and proposed contribution rates per equivalent tenement (ET) (or one “house block” of residential land) are shown in the table below. The rates are calculated as of 1 July 2017 and are subject to CPI increases. Final rates will be adjusted for CPI at the time of adoption of the new contributions plan. The contribution rates have changed slightly from the draft previously provided to Councillors due to minor alterations to the works program.

Comparison of Existing and Proposed Development Contribution Rates

Locality	Draft Local Rate	Draft Regional Rate	Draft Total	Current Local Rate	Current Regional Rate	Current Total Rate	Difference
Lake Cathie/Bonny Hills	$1,822	$4,657	$6,479	$1,766	$4,375	$6,141	$338
Thrumster	$1,749	$4,657	$6,407	$2,184	$4,375	$6,559	-$152
Innes Peninsula	$1,396	$4,657	$6,053	$1,575	$4,375	$5,950	$103
Camden Haven	$1,091	$4,657	$5,749	$1,740	$4,375	$6,115	-$366
Port Macquarie	$757	$4,657	$5,415	$1,374	$4,375	$5,749	-$334
Wauchope	$381	$4,657	$5,038	$420	$4,375	$4,795	$243
Rural	$0	$4,657	$4,657	$0	$4,375	$4,375	$282

Development in the rural area located outside of the draft plan local catchments will not be subject to a local catchment contribution other than for King Creek. Development within the King Creek catchment is subject to an existing and separate contributions plan and local contributions would continue to be calculated under that plan.

The revised open space development contributions rates proposed under the draft plan will apply to development consents determined after the plan is adopted. The contributions rate applicable under the plan that was in place at the time of consent continues to apply for older consents.

Works in the draft plan cover the period from 2007 through to 2031 for district facilities to take into account recoupment for works that have already been completed. The draft also includes a future works program for the next 14 years. Local catchments also start at 2007 and continue to 2026 or until the design population for the growth area is reached. Collection of development contributions and the provision of infrastructure will be dependent on the rate of development. Local catchment facilities identified for the growth area local catchments, for example Thrumster, will be provided as development progresses in those areas.

The works schedule contains a list of open space projects for which development contributions will be sought. The cost estimates have been prepared by Council and take into account preconstruction design and associated studies, land acquisition and construction costs. Where possible the costs associated with Council delivery of similar projects or construction industry quotes for works have been used to prepare the estimates.

The Independent Pricing and Regulatory Tribunal (IPART) developed a set of local infrastructure benchmark costs for development contributions plans in 2014. The benchmark items include components of district and local open space embellishment such as sports field lighting and outdoor sports courts, park furniture, playground soft surface, basic landscaping and shade structures. Council is not required to adopt the IPART benchmark costs and they were used as a guide only in preparing the cost estimates included in the works schedule.

An analysis of the contribution rates for the various catchments including the district catchment is provided below:

District

· Increase mainly due to revised cost of works for major facilities, the reclassification of some local facilities as district facilities and recent population forecast is less than that forecast under the old contributions plan.

· Works include new sports field facilities at Thrumster, Lake Cathie/ Bonny Hills, Camden Haven and the Hastings Regional Sporting Complex.

Camden Haven

· Local contribution decrease due to reclassification of some local facilities as district and rationalisation of proposed works.

· Works include new local park land acquisition and embellishment and playground and reserve upgrades.

Innes Peninsula

· Local contribution decrease mainly due to removal of a local sporting facility from the plan.

· Works include new local park land acquisition and embellishment.

Lake Cathie/Bonny Hills

· Local contribution increase mainly due to cost of new local parks and pedestrian facilities.

· Works include new local park land acquisition and embellishment, beach access and playground and reserve upgrades.

Port Macquarie

· Local contribution decrease mainly due to reclassification of some local facilities as district and rationalisation of proposed works.

· Works mainly include playground and local park upgrades.

Thrumster

· Local contribution decrease mainly due to a higher projected population growth for the catchment.

· Works mainly include new local park land acquisition and embellishment.

Wauchope

· Local contribution decrease mainly due to reclassification of some local facilities as district and the western growth area being excluded because of uncertainty around extent of facilities and population to be served. Current developments within the growth area are covered by planning agreements regarding payment of contributions for open space. It is proposed that a new local contributions plan will be developed for the growth area in conjunction with the rezoning of the growth area.

· Works mainly include playground and reserve upgrades.

Rural

· Rural areas outside of the above catchments will only pay the district rate with the exception of King Creek which has a local contributions plan that includes contributions for road works and local community facility/open space contributions.

Options

Council has the option to proceed with the public exhibition of the draft plan or to retain the existing Open Space Contributions Plan 2006. Maintaining the existing contributions plan would mean that works programs and estimated costs would not be consistent with current planning and may not reflect current costs.

Council also has the option to review and modify the works program in the draft plan.

Community Engagement & Internal Consultation

Public exhibition is proposed for 6 weeks (statutory requirement is minimum 4 weeks). Key stakeholders including local consultants will be notified and a ‘drop in’ information session will be included as part of the community engagement.

In preparing the draft plan the following Council staff have been consulted:

Director Strategy and Growth

Director Development and Environment

Group Manager Strategic Land Use Planning

Group Manager Recreation and Buildings

Planning & Policy Implications

The draft plan will replace the current plan known as Open Space Contributions Plan 2006. The draft plan is the culmination of strategic planning documents including the Recreation Needs Study 2015, Recreation Action Plan 2017and planning for growth areas. The plan includes a detailed works schedule of new facilities and upgrades that are proposed to serve population growth.

The draft plan has a similar format and content to the current plan but there are some differences including:

· The Wauchope Urban Growth Area has been excluded until planning is complete for Yippin Creek. While this area includes some residential areas the detailed planning is not sufficiently advanced to allow preparation of a detailed works program for local facilities.

· The previous local catchment for Sancrox Thrumster has been modified to create a separate local area for the growth area of Thrumster while the Sancrox area has been excluded from the local catchment. As a result development in the Sancrox locality will pay a district contribution only. This situation will be reviewed once any urban growth planning for the area is more advanced. Unlike the Yippin Creek area noted above a detailed structure plan for Sancrox has not been prepared.

Some reserves and sporting facilities are not included in the works program for new or upgraded facilities for various reasons including:

· The facilities for the reserve have recently been upgraded and the works are in the plan as recoupment.

· Future works are considered to be maintenance only as the level of infrastructure is sufficient for the time span of the plan.

· The works will be fully funded by other sources (e.g. the new Boating Facility at Dunbogan), which is fully funded by a grant.

· The works are considered to be of a local nature in the rural area. Growth in local rural areas is too low to warrant inclusion in the draft plan because of the limited apportionment. The works, (including local playground upgrades at Beechwood, Long Flat, Pappinbarra, Pembroke and Telegraph Point) will still be listed in the Recreational and Buildings forward program for inclusion in Council’s Operational Plan.

Financial & Economic Implications

The table below shows the total cost of works to be undertaken under the draft plan together with the development contributions and Council funding components. For works that will also serve the existing population Council will need to fund the existing population component (approximately $35.3M) from general revenue or other sources.

Apportionment shown in the table is calculated as the percentage of the future population benefitting from the new works (and works already provided) compared to the total population (existing plus new) that will benefit from the works. For example the total District population to be served is estimated at 97,000 in 2031. The population as at 2007 (the start date for the plan) was 71,097. Apportionment is then calculated as 97,000 minus 71,097 divided by 97,000 equalling 26.7%.

Table of total costs and funding apportionment

Plan Area	Apportionment	Total Cost of Facilities (Excluding Recoupment)	Total s94 component	Total Council Funding component
District	26.7%	$77,387,420	$47,557,156	$29,830,264
Camden Haven	26.4%	$2,819,200	$1,319,231	$1,499,969
Innes Peninsula	100.0%	$2,683,238	$2,683,238	$0
Lake Cathie/Bonny Hills	45.1%	$4,093,844	$3,691,819	$402,025
Port Macquarie	11.6%	$4,138,800	$1,309,586	$2,829,214
Thrumster	100.0%	$6,921,000	$6,921,000	$0
Wauchope	12.2%	$823,800	$100,471	$723,329
Total		$98,867,302	$63,582,502	$35,284,800

Contribution rates in the draft plan have been calculated as at 1 July 2017. Accordingly final rates will need to be adjusted to reflect CPI increases when the plan is finally adopted by Council.

In addition to the Council funding component it is estimated that there will be a shortfall of contribution income under the draft plan of up to $6M (mainly in the area of district facilities) that will also need to be funded by Council. This is due to a number of development consents that are current but were approved before the introduction of the current plan and therefore not subject to the new development contributions. Also, recent consents will not pay a higher rate where it is proposed under the draft plan. In these instances some of the cost of works that would ordinarily be met by development contributions will need to be funded from other sources such as general rate income. The total funding required under the plan is therefore in the order of $42M.

Council’s Finance section has advised that the average capital expenditure on open space infrastructure over the past 3 years has averaged slightly over $3M. Accordingly, sufficient funding for the works under the plan should be available to Council over the projected 14 years of future district spending under the plan. Depending on the timing of some of the works under the draft plan Council may need to borrow funds if works were undertaken sooner than the timing proposed in the draft plan.

The draft plan includes the following in section 2.14:

‘For the purposes of s93E(2) of the Act, this plan authorises money obtained from levies paid in respect of different developments to be pooled and applied by the Council progressively towards the public facilities listed in the Works Schedule (Appendix 3).

With the adoption of this Plan, Council has determined that it is satisfied that pursuant to the EP & A Regulation that the pooling and progressive application of the money paid for the priorities will not unreasonably prejudice the carrying into effect, within a reasonable time, of the purposes for which the money was originally paid’.

Without the pooling provision Council would need to isolate individual contributions and apply the contribution proportionally to specific works. This would become problematic if development occurred at lower rates than anticipated under the plan. Council would need to either fund the contribution shortfall or potentially defer works until sufficient development had occurred in a specific locality to undertake the works. The pooling of funds allows Council to undertake works on a priority basis determined by the time frame shown in the works program.

Contributions Cap

The State Government has introduced contribution caps that restrict total development contributions in identified growth areas to a maximum of $30,000 and other areas to a maximum of $20,000. Council’s current contributions are generally well below the contribution caps. To exceed the cap, plans need to be reviewed by IPART and works must conform to an essential works list which would limit some of the works currently proposed under Council’s Contributions Plans.

The only area that currently exceeds the contribution cap is the Camden Haven catchment outside of the Area 15 Growth Area and where a bushfire contribution is payable with the cap being exceed by up to $529. As a result, the contributions for community facilities (the most recent plan to apply in the area) are reduced by this amount in order for contributions to stay below the Cap. The draft plan will see a slight drop in open space contributions applying in the Camden Haven which will reduce the amount the cap is exceeded in the short term. Exceeding the Cap is not a major issue at present given the limited future growth in the Camden Haven outside of the Area 15 Growth Area. The issue of the Cap will be reviewed in conjunction with the new Major Roads Contributions Plan due in 2019.

Open Space Contributions in other LGAs

Contributions are calculated based on the facilities proposed to be provided and the estimated population growth. Rates will vary from council to council dependent on:

· Level of service - type & kind of facilities provided

· Land acquisition costs for new facilities

· Apportionment to growth and whether worker population growth is also a factor.

For these reasons it is difficult to compare local council areas and indeed catchment to catchment.

Examples of development contributions for a new residential lots at Coffs Harbour City, Lake Macquarie and Tweed are provided below compared to proposed contributions under the draft plan.

LGA	Locality/Catchment	Total Open space Contributions
PMHC	Port Macquarie	$5,542
PMHC	Lake Cathie/Bonny Hills	$6,419
Coffs Harbour	Moonee – Sapphire Beach	$6,094
Coffs Harbour	Park Beach	$7,002
Tweed	Banora Point	$7,450
Lake Macquarie	Belmont	$15,093
Lake Macquarie	North Lakes	$21,759

Notes for table above:

- Coffs Harbour taken from their contributions by locality as at 27 October 2017.

- Lake Macquarie taken from website CPI update 3 bed/lot effective from 14 November 2017

- Tweed taken from Banora Point and Shirewide/Regional Open Space indexed 1 July 2017.

Attachments

1 View. Attachment - Draft Open Space Development Contributions Plan February 2018

Purchase of Image from Health Link Exhibition	$150.00
Donation of Glasshouse Vouchers to Camden Haven PAH&I Society Twilight Festival Fundraiser	$200.00
Donation of Glasshouse Vouchers to Hastings Business Women’s Network Fundraiser for PMQ-Hastings Domestic & Family Violence Specialist Service	$200.00
Donation of Glasshouse Vouchers to Fundraiser for Grant Cowell	$200.00
Floral Bouquet for the funeral of the late Daphne Johnston OAM	$60.00
Floral Wreath for National Servicemen’s Day Service on 15/02/18	$60.00
	$870.00