Agenda of Ordinary Council - 20 November 2019

MINUTES

Ordinary Council Meeting

16/10/2019

PRESENT

Members:

Councillor Peta Pinson (Mayor)

Councillor Lisa Intemann (Deputy Mayor)

Councillor Rob Turner

Councillor Sharon Griffiths

Councillor Peter Alley

Councillor Justin Levido

Councillor Geoff Hawkins

Councillor Lee Dixon

Other Attendees:

General Manager (Craig Swift-McNair)

Director Corporate Performance (Rebecca Olsen)

Director Development and Environment (Melissa Watkins)

Director Infrastructure (Dan Bylsma)

Director Strategy and Growth (Jeffery Sharp)

Governance Project Officer (Darryl Hancock)

Governance Support Officer (Bronwyn Lyon)

Communications Manager (Andy Roberts)

The meeting opened at 5:30pm.

01 WELCOME TO COUNTRY

The Mayor opened the Meeting and invited Uncle Bill O’Brien OAM of the Bunyah Local Aboriginal Land Council, to deliver the Welcome to Country.

Uncle Bill delivered the Welcome to Country.

02 LOCAL GOVERNMENT PRAYER

Reverend Nathan Killick from the Camden Haven Anglican Church delivered the Local Government Prayer.

03 APOLOGIES

Nil.

04 CONFIRMATION OF MINUTES

RESOLVED: Dixon/Alley

That the Minutes of the Ordinary Council Meeting held on 18 September 2019 be confirmed.

carried: 8/0

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

Against: Nil

05 DISCLOSURES OF INTEREST

Councillor Dixon declared a Pecuniary Interest in Item 13.08 - Classification Of Land Containing Sewer Infrastructure, the reason being that Councillor Dixon has a family link to Tribec Pty who are the developers of Glenview Park and Yippin Creek.

Councillor Levido declared a Non-Pecuniary, Significant Interest in Item 15.04 - Design of Rainbow Beach Sporting Fields and Construction of School to School Shared Pathway, the reason being that Councillor Levido that Councillor Levido is the principle of Levido Law and Property. The Firm acts for one of the tenders, the subject of the report.

06 MAYORAL MINUTES

Nil.

07 CONFIDENTIAL CORRESPONDENCE TO ORDINARY COUNCIL MEETING

The General Manager advised that there are no confidential attachments to reports for the Ordinary Council Meeting.

08 PUBLIC FORUM – MATTERS NOT ON THE AGENDA

The Mayor advised of requests to speak in the Public Forum - Matters Not On The Agenda from:

1. Mr Stuart Bate, Camden Haven Chamber of Commerce, regarding Community Spirit - Importance of Positive Council Engagement.

2. Mr Jason Koenig, Camden Haven Schools to Schools Shared Pathway, regarding Shared Pathways.

3. Mr Peter Matthison, Mid Coast Honey, regarding Why Addressing Climate Change is So Urgent.

4. Mrs Janette Jones regarding Refugee Welcome Zone.

5. Mr Peter Nash regarding Operational Budget for Welfare of Volunteer Fire Fighters.

RESOLVED: Dixon/Griffiths

That the above requests to speak in the Public Forum - Matters Not On The Agenda be acceded to.

carried: 8/0

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

Against: Nil

08.01 Community Spirit - Importance of Positive Council Engagement

Mr Stuart Bate, Camden Haven Chamber of Commerce, addressed Council in regard to Community Spirit - Importance of Positive Council Engagement.

08.02 Shared Pathways

Mr Jason Koenig, Camden Haven Schools to Schools Shared Pathway, addressed Council in regard to Shared Pathways, along with the Principal of St Joseph’s, David Hughes.

08.03 Why Addressing Climate Change is So Urgent

Mr Peter Matthison, Mid Coast Honey, addressed Council in regard to Why Addressing Climate Change is So Urgent and answered questions from Councillors.

08.04 Refugee Welcome Zone

Mrs Janette Jones addressed Council in regard to Refugee Welcome Zone and answered questions from Councillors.

08.05 Operational Budget for Welfare of Volunteer Fire Fighters

Mr Peter Nash addressed Council in regard to Operational Budget for Welfare of Volunteer Fire Fighters and answered questions from Councillors.

09 PUBLIC FORUM – MATTERS ON THE AGENDA

The Mayor advised of requests to speak in the Public Forum - Matters On The Agenda from:

Item 10.04 - Mr Blair Maxwell in support of the recommendation.

Item 10.04 - Ms Penny Small, Beach to Beach Pathway Committee, in support of the recommendation.

Item 10.08 - Ms Kate Aston, Revive Lake Cathie Inc., in support of the recommendation.

Item 11.03 - Mr Roger Barlow, Bonny Hills Progress Association, in support of the recommendation.

Item 13.01 - Ms Rachel Sheppard (in Jake Wadsworth’s absence) in support of the recommendation.

Item 13.09 - Ms Kate Aston, Revive Lake Cathie Inc., in support of the recommendation.

Item 13.09 - Dr Deborah Geronimi in support of the recommendation.

RESOLVED: Griffiths/Dixon

That the above requests to speak in the Public Forum - Matters On The Agenda be acceded to.

carried: 8/0

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

Against: Nil

Suspension of Standing Orders

RESOLVED: Alley/Turner

That Standing Orders be suspended to allow Items 10.08, 10.04, 11.03, 13.01, 3.09 to be brought forward and considered next.

carried: 6/2

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

Against: Griffiths and Pinson

10.08 Borrowing for Projects

Ms Kate Aston, Revive Lake Cathie Inc., addressed Council in support of the recommendation.

Mr Blair Maxwell addressed Council in support of the recommendation.

MOTION

MOVED: Levido/Intemann

That Council:

1. Note the importance of the following projects and prioritise them for planning and design:

a) Upgrade of Boundary Street, Port Macquarie from its intersection with Hastings River Drive to the Port Macquarie Airport entry based on current investigations and planning in an amount of $15,000,000.00 for the complete project.

b) Carry out upgrade works to Bril Bril Road, Rollands Plains based on prior discussions and investigations with the local community in an amount of $6,000,000.00 for the complete project.

c) Carry out further works with respect to the “Schools to Schools” project from Kendall Public School, Kendall to Laurieton Public School, Laurieton, with reference to the existing Strategic Alignment Study and the high priority sections identified in consultation with the School to School local committee.

d) Carry out further works with respect to the “Beach 2 Beach” project from North Haven to Dunbogan, with reference to the proposed Strategic Alignment Study and in consultation with the Beach 2 Beach local committee.

e) Carry out investigations and planning with respect to undertaking tidal improvements to that part of the Lake Innes and Lake Cathie Estuarine System from the Ocean Drive bridge in a westerly direction.

2. Add to the 2019-2020 Operational Plan the components of planning and design for the projects listed above so as to substantially progress each, using internal and/or contracted resources so as to not prevent completion of other existing projects in the 2019-2020 operational plan.

3. Request the General Manager to add the remaining planning and design work for the projects listed above, plus substantial further work on each project, to the draft 2020-2021 Operational Plan.

4. Request the General Manager to fund the nominated planning and design work specified in point 2, above, with loan borrowings raised immediately to the amount of $2,400,000.00.

5. Request the General Manager to consider (in the current 2019-2020 operational plan, the draft 2020-2021 operational plan and in the review of the long term financial plan) the appropriate mitigation factors to offset the cashflow requirements (and operating performance impacts) of repaying the interest and principal associated with the above borrowings.

6. Request the General Manager to consider additional borrowings up to $25,000,000.00 in total to fund the balance of the projects listed 1a) and 1b) above and progressing the projects listed 1c), 1d) and 1e) above (in the draft 2020-2021 operational plan and in the review of the long term financial plan), together with the appropriate mitigation factors to offset the cash flow requirements (and operating performance impacts) of repaying the interest and principal associated with the additional borrowings.

AMENDMENT

MOVED: Pinson/Griffiths

That Item 10.08 be deferred and given consideration by the entire elected body due to the significance of the borrowing of $25,000,000.00 and further discussions on how to consult with our community can be undertaken.

THE AMENDMENT WAS PUT AND WAS LOST

MOVED: Pinson/Griffiths

lost: 2/6

For: Griffiths and Pinson

Against: Alley, Dixon, Hawkins, Intemann, Levido and Turner

AMENDMENT

MOVED: Pinson/Griffiths

That Council:

1. Request the General Manager to investigate the sourcing of $2.4,M to fund the nominated planning and design work for the projects specified below from the unrestricted reserves fund:

b) Carry out upgrade works to Bril Bril Road, Rollands Plains based on prior discussions and investigations with the local community in an amount of $6,000,000.00 for the complete project.

2. Request the General Manager bring a report back to Council at the December 2019 Council Meeting for further consideration.

THE AMENDMENT WAS PUT AND WAS LOST

MOVED: Pinson/Griffiths

That Council:

1. Request the General Manager to investigate the sourcing of $2.4,M to fund the nominated planning and design work for the projects specified below from the unrestricted reserves fund:

b) Carry out upgrade works to Bril Bril Road, Rollands Plains based on prior discussions and investigations with the local community in an amount of $6,000,000.00 for the complete project.

2. Request the General Manager bring a report back to Council at the December 2019 Council Meeting for further consideration.

lost: 3/5

For: Dixon, Griffiths and Pinson

Against: Alley, Hawkins, Intemann, Levido and Turner

THE MOTION WAS PUT

RESOLVED: Levido/Intemann

That Council:

1. Note the importance of the following projects and prioritise them for planning and design:

b) Carry out upgrade works to Bril Bril Road, Rollands Plains based on prior discussions and investigations with the local community in an amount of $6,000,000.00 for the complete project.

3. Request the General Manager to add the remaining planning and design work for the projects listed above, plus substantial further work on each project, to the draft 2020-2021 Operational Plan.

4. Request the General Manager to fund the nominated planning and design work specified in point 2, above, with loan borrowings raised immediately to the amount of $2,400,000.00.

carried: 6/2

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

Against: Griffiths and Pinson

10.04 Notice of Motion - Funding for the Environmental Impact Statement for the Beach to Beach Shared Pathway

Ms Penny Small, Beach to Beach Pathway Committee, addressed Council in support of the recommendation and answered questions from Councillors.

RESOLVED: Pinson/Intemann

That Council:

1. Request the General Manager prioritise the EIS and the detailed design of the Beach to Beach project in preparation to seek external grant funding utilizing expenditure from the loan monies dealt with in Item 10.08 of Council’s Meeting of 16 October 2019.

2. Request the General Manager report to the February 2020 Council Meeting on the progress of the EIS and detailed design of the Beach to Beach project.

carried: 7/1

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

Against: Griffiths

11.03 Bonny Hills Community Plan

Mr Roger Barlow, President, and Kathy Reagan, Vice President, Bonny Hills Progress Association, addressed Council in support of the recommendation and answered questions from Councillors.

RESOLVED: Griffiths/Alley

That Council:

1. Endorse the Bonny Hills Community Plan.

2. Note the information contained within the Developing a Community Plan for Bonny Hills Engagement Report.

3. Note the goals and actions identified for the Bonny Hills community as outlined in the Action Plan, for consideration in future Operational Plans.

carried: 8/0

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

Against: Nil

13.01 Notice of Motion - Sustainability Initiatives and Programs

Ms Rachel Sheppard, in the absence of Jake Wadsworth, addressed Council in support of the recommendation and answered questions from Councillors.

RESOLVED: Intemann/Alley

That Council:

1. Request the General Manager provide a report to the December 2019 meeting of Council providing an overview of significant sustainability initiatives and programs that Council has previously and is currently engaged in, including how each might relate to climate change mitigation and/or adaptation.

2. Consider funding a Sustainability Officer in the 2020-2021 Operational Plan.

carried: 8/0

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

Against: Nil

13.09 Lake Innes/Lake Cathie Estuary System Update Report

Ms Kate Aston, Revive Lake Cathie Inc., addressed Council in support of the recommendation and answered questions from Councillors.

Dr Deborah Geronimi addressed Council in support of the recommendation and answered questions from Councillors.

RESOLVED: Alley/Griffiths

That Council:

1. Note the information provided in the Lake Innes/Lake Cathie Estuary System Update Report.

2. Request the General Manager to seek 50% Coastal Management Program funding to undertake the initial background studies as outlined, for input to the Lake Innes/Lake Cathie Coastal Management Program being $147,500.

carried: 8/0

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

Against: Nil

10.01 Status of Reports From Council Resolutions

The General Manager tabled a motion of no confidence in the Port Macquarie-Hastings Council from a town meeting organised by the Better Orbital Options Association meeting on 8 September 2019.

RESOLVED: Intemann/Dixon

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

carried: 8/0

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

Against: Nil

10.02 Resignation of Councillor Mike Cusato

RESOLVED: Alley/Dixon

That Council request the General Manager write to the Minister for Local Government The Hon. Shelley Hancock MP, seeking application to dispense with a by-election to replace the casual vacancy left following the recent resignation of Councillor Mike Cusato, in line with Section 294 (2) of the NSW Local Government Act 1993.

carried: 8/0

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

Against: Nil

10.03 Mid North Coast Joint Organisation Update

RESOLVED: Intemann/Alley

That Council:

1. Note the information provided in this Mid North Coast Joint Organisation Update report.

2. Congratulate the General Manager for his progressive work towards regional collaboration through the Mid North Coast Joint Organisation.

carried: 8/0

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

Against: Nil

Item - 10.04 Notice of Motion - Funding for the Environmental Impact Statement for the Beach to Beach Shared Pathway - has been moved to another part of the document.

10.05 Mayoral Discretionary Fund Allocations - 5 September to 2 October 2019

RESOLVED: Pinson/Griffiths

That Council note the allocations from the Mayoral Discretionary Fund for the period 5 September to 2 October 2019 inclusive.

carried: 8/0

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

Against: Nil

10.06 Request for Leave of Absence - Councillor Alley

RESOLVED: Hawkins/Pinson

That Council grant leave of absence for Councillor Alley for the period 18 October 2019 to 19 November 2019.

carried: 8/0

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

Against: Nil

10.07 Disclosures Register - Annual Returns 2018-2019

RESOLVED: Hawkins/Alley

That Council:

1. Note the information in the Disclosure Register for 2018-2019.

2. Determine that the following positions become a Designated Person pursuant to the provisions of Clause 4.8 of Council’s Code of Conduct:

a) Senior Project Manager.

b) Project Manager.

carried: 8/0

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

Against: Nil

Item - 10.08 Borrowing for Projects - has been moved to another part of the document.

10.09 Local Government Act Amendments - Prescribed Tendering Threshold

Councillor Dixon left the meeting, the time being 8:33pm.

Councillor Dixon returned to the meeting, the time being 8:35pm.

RESOLVED: Intemann/Hawkins

That Council:

6. Note the amendments to the Local Government Act 1993 prescribed tendering threshold.

7. Adopt the amended Purchasing Policy, to reflect the legislative changes and administrative updates.

8. Reclassify the amended Purchasing Procedure and Tendering Procedure as internal procedures.

9. Note the staged approach for reviewing in detail and amending Council’s procurement policy, and related procedures and practices.

10. Refer this matter to the Audit Risk and Improvement Committee for information pending a more thorough review of the Procurement Policy.

carried: 8/0

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

Against: Nil

10.10 Monthly Budget Review - September 2019

RESOLVED: Hawkins/Griffiths

That Council:

1. Adopt the adjustments in the “September 2019 Adjustments” section of the Monthly Budget Review – September 2019.

2. Amend the 2019-2020 Operational Plan to include all budget adjustments approved in this report.

carried: 8/0

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

Against: Nil

10.11 Investments - September 2019

RESOLVED: Hawkins/Alley

That Council note the Investment Report for the month of September 2019.

carried: 7/1

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

Against: Griffiths

11.01 Response to Lake Cathie Community Concerns

RESOLVED: Intemann/Dixon

That Council note the information contained in this Response to Lake Cathie Community Concerns report.

carried: 8/0

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

Against: Nil

11.02 Recommended Items from the Mayor's Sporting Fund Sub-Committee - September 2019

RESOLVED: Pinson/Alley

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

1. That Madelaine Goodridge receive $350.00 to assist with the expenses she will have incurred travelling to and competing at the NSW Combined High Schools Track and Field Championships at Sydney Olympic Park from 4 - 6 September inclusive.

carried: 8/0

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

Against: Nil

Item - 11.03 Bonny Hills Community Plan - has been moved to another part of the document.

11.04 Recreation Action Plan 2017-2025 Update

RESOLVED: Turner/Griffiths

That Council:

1. Note progress achieved to date in implementing the Recreation Action Plan 2017-2025.

2. Endorse the updated Recreation Action Plan 2019-2025 for implementation.

3. Request the General Manager to publically notify the community of the updated Recreation Action Plan 2019-2025.

carried: 8/0

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

Against: Nil

12.01 Adequacy of Existing Risk Management Controls Associated with Paragliding Activities

RESOLVED: Intemann/Griffiths

That Council note the information contained within the Adequacy of Existing Risk Management Controls Associated with Paragliding report.

carried: 8/0

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

Against: Nil

13.02 Question With Notice - Dunbogan Bridge rehabilitation - Update

RESOLVED: Alley/Dixon

That Council note the Dunbogan Bridge Rehabilitation - Update report.

carried: 8/0

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

Against: Nil

13.03 Question With Notice - Dunbogan Flood Access Upgrade and Beach to Beach Pathway

RESOLVED: Alley/Griffiths

That Council note the Dunbogan Flood Access Upgrade and Beach to Beach Pathway report.

carried: 8/0

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

Against: Nil

13.04 Unsealed Roads Maintenance Practices - Investigation Update

RESOLVED: Griffiths/Turner

That Council:

1. Note the report on the Unsealed Roads Policy and current work practices completed by Australian Road Research Board (ARRB).

2. Give consideration to the recommendations from ARRB in respect to funding and resources for unsealed roads during the development of the 2020-2021 Operational Plan.

3. Note the commitment to undertake community stakeholder meetings in the first half of 2020 to present and discuss the outcomes of the ARRB review, including discussions around service levels.

carried: 8/0

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

Against: Nil

13.05 Parking Strategy Review

RESOLVED: Turner/Hawkins

That Council note the information contained in the Parking Strategy Review report.

carried: 8/0

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

Against: Nil

13.06 Draft Planning Proposal Policy

RESOLVED: Intemann/Griffiths

That Council:

1. Endorse the Draft Planning Proposal Policy for placing on public exhibition for 28 days from 23 October to 20 November 2019.

2. Request the General Manager provide a report to the December 2019 Ordinary Council Meeting outlining community feedback provided during the public exhibition period.

carried: 8/0

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

Against: Nil

13.07 DA2018 - 507.1 3 Lot Subdivision including Clause 4.6 Variation to Clause 4.1 (Minimum Lot Size) of Port Macquarie Hastings Local Environmental Plan 2011 - Lot 41 and Lot 42 DP 75403 and Lot 8 DP 114360, No. 434 and 440 Herons Creek Road, Herons Creek

RESOLVED: Intemann/Alley

That DA 2018 - 507 for 3 Lot Subdivision including a clause 4.6 variation of clause 4.1 (minimum lot size) of the Port Macquarie Hastings Local Environmental Plan 2011 at Lots 41 & 42 DP 754403 and Lot 8 DP 114360, No. 434 & 440 Herons Creek Rd, Herons Creek, be determined by granting consent subject to the recommended conditions included in Attachment 1.

carried: 8/0

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

Against: Nil

13.08 Classification of Land Containing Sewer Infrastructure

Councillor Dixon left the meeting, the time being 8:46pm.

RESOLVED: Griffiths/Hawkins

That Council classify Lot 29 Deposited Plan 1192366 (land situated on Glenview Drive, Yippin Creek) as operational land.

carried: 7/0

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

Against: Nil

Councillor Dixon returned to the meeting, the time being 8:47pm.

Item - 13.09 Lake Innes/Lake Cathie Estuary System Update Report - has been moved to another part of the document.

13.10 Update on Public Tree Management in Urban Areas

RESOLVED: Intemann/Dixon

That Council:

1. Note the information contained within the Update on Public Tree Management in Urban Areas report.

2. Consider an increased resourcing for tree management in the 2020-2021 operational plan.

carried: 8/0

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

Against: Nil

13.11 Koala Recovery Strategy Annual Update Report

RESOLVED: Alley/Turner

That Council note the information presented in the Koala Recovery Strategy Annual Update report.

carried: 8/0

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

Against: Nil

14 ITEMS TO BE DEALT WITH BY EXCEPTION

Nil.

Councillor Turner left the meeting, the time being 8:52pm.

CONFIDENTIAL COMMITTEE OF THE WHOLE

RESOLVED: Griffiths/Hawkins

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 15.01 T-19-38 Supply and Delivery of Electrical Goods

This item is considered confidential under Section 10A(2)(c) of the Local Government Act 1993, as it contains information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business.

Item 15.02 T-19-40 Provision of Building Maintenance 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 15.03 T-19-41 Provision of Plumbing Services

Item 15.04 Design of Rainbow Beach Sporting Fields & Construction of School to School Shared Pathway

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: 7/0

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

Against: Nil

Adjourn meeting

the Ordinary Council Meeting adjourned at 8.54pm.

Resume meeting

The Ordinary Council Meeting resumed at 8:56pm.

ADOPTION OF RECOMMENDATIONS FROM THE CONFIDENTIAL COMMITTEE OF THE WHOLE

RESOLVED: Dixon/Alley

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

carried: 8/0

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

Against: Nil

Item 15.01 T-19-38 Supply and Delivery of Electrical Goods

RESOLVED: Intemann/Dixon

That Council:

1. In accordance with the Local Government (General) Regulations 2005 clause 178(1)(b), decline to accept any of the tenders submitted for
T-19-38 for the Supply and Delivery of Electrical Goods due to the reason that there were an insufficient number of conforming tenders to form a panel arrangement;

2. In accordance with the Local Government (General) Regulations 2005 clauses 178(3)(e) and 178(4), decline to invite fresh tenders and enter into negotiations with the following companies;

· Metal Manufactures Ltd; and

· Rexel Electrical Supplies Pty Ltd;

4. Request the General Manager to present a further report to a future meeting of Council on completion of the negotiation process, for Council’s further consideration of T-19-38 and acceptance of the proposed panel arrangement; and

5. Maintain the confidentiality of the documents and considerations in respect of T-19-38.

carried: 8/0

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

Against: Nil

Item 15.02 T-19-40 Provision of Building Maintenance Services

RESOLVED: Griffiths/Hawkins

That Council:

1. Accept tenders from the following contractors to be appointed to a panel arrangement for the Provision of Building Maintenance Services for a two year period commencing 1 November 2019, with two options to extend for a period of one year each, such option(s) to be for the benefit of the Council and may be exercised only by the Council in its sole discretion:

a) GT Coastal Constructions;

b) Patterson Building Specialist Pty Ltd; and

c) Sala Builders Commercial Maintenance.

2. Accept the Schedule of Rates for the Provision of Building Maintenance Services from:

a) GT Coastal Constructions;

b) Patterson Building Specialist Pty Ltd; and

c) Sala Builders Commercial Maintenance.

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

4. Maintain the confidentiality of the documents and considerations in respect of Tender T-19-40.

carried: 8/0

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

Against: Nil

Item 15.03 T-19-41 Provision of Plumbing Services

RESOLVED: Intemann/Griffiths

That Council:

1. Accept tenders from the following contractors to be appointed to a panel arrangement for the provision of plumbing services for a two year period commencing 1 November 2019, with two options to extend for a period of one year each, such option(s) to be for the benefit of the Council and may be exercised only by the Council in its sole discretion:

a) AJ & KC Cutcliffe; and

b) Tifes Plumbing Pty Ltd

2. Accept the Schedule of Rates for the provision of plumbing services from:

a) AJ & KC Cutcliffe; and;

b) Tifes Plumbing Pty Ltd

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

4. Maintain the confidentiality of the documents and considerations in respect of Tender T-19-41.

carried: 8/0

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

Against: Nil

Item 15.04 Design of Rainbow Beach Sporting Fields & Construction of School to School Shared Pathway

RESOLVED: Intemann/Alley

That Council:

1. Pursuant to Section 55(3)(a) of the Local Government Act 1993, resolve to not invite open tender and endorse the procurement strategy to seek quotes from consultants under Local Government Procurement Professional Services panel LGP1208-3 for the Design of Rainbow Beach Sporting Field.

2. Pursuant to Section 55(3)(c) of the Local Government Act 1993, resolve to not invite tender and endorse the procurement strategy to enter into direct negotiations with Coffs Harbour City Council trading as Coastal Works under our existing Memorandum of Association (MoU) for the Construction of Schools to Schools Shared Pathway and Pedestrian Facilities.

3. Note that a further report will be tabled (for information only) detailing the outcomes of the procurement strategy for each of the projects.

4. Maintain the confidentiality of the considerations as detailed in this report and in respect to Design of Rainbow Beach Sporting Field and Construction of Schools to Schools Shared Pathway and Pedestrian Facilities Projects.

carried: 7/0

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

Against: Nil

The meeting closed at 8:57pm.

………………………………………..

Peta Pinson

Mayor

AGENDA Ordinary Council 20/11/2019

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, the undersigned, hereby 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:

Please submit to the Governance Support Officer at the Council Meeting.

(Refer to next page and the Code of Conduct)

Pecuniary Interest

4.1 A pecuniary interest is an interest that you have in a matter because of a reasonable likelihood or expectation of appreciable financial gain or loss to you or a person referred to in clause 4.3.

4.2 You will 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 you might make in relation to the matter, or if the interest is of a kind specified in clause 4.6.

4.3 For the purposes of this Part, you will have a pecuniary interest in a matter if the pecuniary interest is:

(a) your interest, or

(b) the interest of your spouse or de facto partner, your relative, or your partner or employer, or

4.4 For the purposes of clause 4.3:

(a) Your “relative” is any of the following:

i) your parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child

ii) your spouse’s or de facto partner’s parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child

iii) the spouse or de facto partner of a person referred to in paragraphs (i) and (i)

(b) “de facto partner” has the same meaning as defined in section 21C of the Interpretation Act 1987.

4.5 You will not have a pecuniary interest in relation to a person referred to in subclauses 4.3(b) or (c)

(a) if you are unaware of the relevant pecuniary interest of your spouse, de facto partner, relative, partner, employer or company or other body, or

(b) just because the person is a member of, or is employed by, a council or a statutory body, or is employed by the Crown, or

(c) just because the person is a member of, or a delegate of a council to, a company or other body that has a pecuniary interest in the matter, so long as the person has no beneficial interest in any shares of the company or body.

Non-Pecuniary

5.1 Non-pecuniary interests are private or personal interests a council official has that do not amount to a pecuniary interest as defined in clause 4.1 of this code. These commonly arise out of family or personal relationships, or out of involvement in sporting, social, religious or other cultural groups and associations, and may include an interest of a financial nature.

5.2 A non-pecuniary conflict of interest exists where a reasonable and informed person would perceive that you could be influenced by a private interest when carrying out your official functions in relation to a matter.

5.3 The personal or political views of a council official do not constitute a private interest for the purposes of clause 5.2.

5.4 Non-pecuniary conflicts of interest must be identified and appropriately managed to uphold community confidence in the probity of council decision-making. The onus is on you to identify any non-pecuniary conflict of interest you may have in matters that you deal with, to disclose the interest fully and in writing, and to take appropriate action to manage the conflict in accordance with this code.

5.5 When considering whether or not you have a non-pecuniary conflict of interest in a matter you are dealing with, it is always important to think about how others would view your situation.

Managing non-pecuniary conflicts of interest

5.6 Where you have a non-pecuniary conflict of interest in a matter for the purposes of clause 5.2, you must disclose the relevant private interest you have in relation to the matter fully and in writing as soon as practicable after becoming aware of the non-pecuniary conflict of interest and on each occasion on which the non-pecuniary conflict of interest arises in relation to the matter. In the case of members of council staff other than the general manager, such a disclosure is to be made to the staff member’s manager. In the case of the general manager, such a disclosure is to be made to the mayor.

5.7 If a disclosure is made at a council or committee meeting, both the disclosure and the nature of the interest must be recorded in the minutes on each occasion on which the non-pecuniary conflict of interest arises. This disclosure constitutes disclosure in writing for the purposes of clause 5.6.

5.8 How you manage a non-pecuniary conflict of interest will depend on whether or not it is significant.

5.9 As a general rule, a non-pecuniary conflict of interest will be significant where it does not involve a pecuniary interest for the purposes of clause 4.1, but it involves:

a) a relationship between a council official and another person who is affected by a decision or a matter under consideration that is particularly close, such as a current or former spouse or de facto partner, a relative for the purposes of clause 4.4 or another person from the council official’s extended family that the council official has a close personal relationship with, or another person living in the same household

b) other relationships with persons who are affected by a decision or a matter under consideration 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 the council official and an organisation (such as a sporting body, club, religious, cultural or charitable organisation, corporation or association) that is affected by a decision or a matter under consideration that is particularly strong. The strength of a council official’s affiliation with an organisation is to be determined by the extent to which they actively participate in the management, administration or other activities of the organisation.

d) membership, as the council’s representative, of the board or management committee of an organisation that is affected by a decision or a matter under consideration, in circumstances where the interests of the council and the organisation are potentially in conflict in relation to the particular matter

e) a financial interest (other than an interest of a type referred to in clause 4.6) that is not a pecuniary interest for the purposes of clause 4.1

f) the conferral or loss of a personal benefit other than one conferred or lost as a member of the community or a broader class of people affected by a decision.

5.10 Significant non-pecuniary conflicts of interest must be managed in one of two ways:

a) by not participating in consideration of, or decision making in relation to, the matter in which you have the significant non-pecuniary conflict of interest and the matter being allocated to another person for consideration or determination, or

b) if the significant non-pecuniary conflict of interest arises in relation to a matter under consideration at a council or committee meeting, by managing the conflict of interest as if you had a pecuniary interest in the matter by complying with clauses 4.28 and 4.29.

5.11 If you determine that you have a non-pecuniary conflict of interest in a matter that is not significant and does not require further action, when disclosing the interest you must also explain in writing why you consider that the non-pecuniary conflict of interest is not significant and does not require further action in the circumstances.

5.12 If you are a member of staff of council other than the general manager, the decision on which option should be taken to manage a non-pecuniary conflict of interest must be made in consultation with and at the direction of your manager. In the case of the general manager, the decision on which option should be taken to manage a non-pecuniary conflict of interest must be made in consultation with and at the direction of the mayor.

5.13 Despite clause 5.10(b), a councillor who has a significant non-pecuniary conflict of interest in a matter, may participate in a decision to delegate consideration of the matter in question to another body or person.

5.14 Council committee members are not required to declare and manage a non-pecuniary conflict of interest in accordance with the requirements of this Part where it arises from an interest they have as a person chosen to represent the community, or as a member of a non-profit organisation or other community or special interest group, if they have been appointed to represent the organisation or group on the council committee.

SPECIAL DISCLOSURE OF PECUNIARY INTEREST DECLARATION

This form must be completed using block letters or typed.

If there is insufficient space for all the information you are required to disclose,

you must attach an appendix which is to be properly identified and signed by you.

[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 the affected principal place of residence of the councillor or an associated person, company or body (the identified land)

Relationship of identified land to councillor

[Tick or cross one box.]

 The 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).

 An associated person of the councillor has an interest in the land.

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

MATTER GIVING RISE TO PECUNIARY INTEREST[1]

Nature of land that is subject to a change

in zone/planning control by proposed

LEP (the subject land2

[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 or associated person

[Tick or cross one box]

 Appreciable financial gain.

 Appreciable financial loss.

[If more than one pecuniary interest is to be declared, reprint the above box and fill in for each additional interest]

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

This form is to be retained by the council’s general manager and included in full in the minutes of the meeting

Last Updated: 3 June 2019

Important Information

This information is being collected for the purpose of making a special disclosure of pecuniary interests under clause 4.36(c) of the Model Code of Conduct for Local Councils in NSW (the Model Code of Conduct).

The special disclosure must relate only to a pecuniary interest that a councillor has in the councillor’s principal place of residence, or an interest another person (whose interests are relevant under clause 4.3 of the Model Code of Conduct) has in that person’s principal place of residence.

Clause 4.3 of the Model Code of Conduct states that you will have a pecuniary interest in a matter because of the pecuniary interest of your spouse or your de facto partner or your relative or because your business partner or employer has a pecuniary interest. You will 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.

“Relative” is defined by clause 4.4 of the Model Code of Conduct 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.

You must not make a special disclosure that you know or ought reasonably to know is false or misleading in a material particular. Complaints about breaches of these requirements are to be referred to the Office of Local Government and may result in disciplinary action by the Chief Executive of the Office of Local Government or the NSW Civil and Administrative Tribunal.

This form must be completed by you before the commencement of the council or council committee meeting at 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.

[1] Clause 4.1 of the Model Code of Conduct 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 clause 4.6 of the Model Code of Conduct.

2 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 clause 4.3 of the Model Code of Conduct has a proprietary interest

AGENDA Ordinary Council

20/11/2019

Item: 10.04

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	Date & Item of Resolution	Status	Reporting Officer	Previous Anticipated Date/s for Report	Current Anticipated Date for Report
Port Macquarie Transport Network Community Consultative Committee - Membership	21/08/19 Item 13.09	EOI to recruit members is underway	DSG	Oct-19	Nov-19
Coastal Koala Plan of Management	19/09/18 Item 12.04	Draft CKPoM under review and subject to peer review following legal advice from landowner	DSG	Oct-19	Nov-19
Planning Proposal PP2016 – 11.1 Mission Terrace Lakewood – post exhibition	15/11/17 Item 12.06	Going back out on exhibition to public	DSG	Sep-19	Nov-19
Proposed Orbital Road Investigation Area - impact of removing investigation area	18/09/19 Item 13.03		DI		Nov-19
Community Participation Plan 2019 - post exhibition	18/09/19 Item 10.14		DSG		Nov-19
Town Centre Master Plan Charter Review	20/06/18 Item 09.09	Still being discussed	DSG	Apr-19 May-19 Jun-19 Aug-19 Oct-19 Nov-19	Dec-19
Land Acquisition - 921 Hastings River Drive, Pembrooke - Post Exhibition	12/12/18 Item 12.04	Valuation pending.	DDE	Jun-19 Aug-19 Oct-19	Dec-19
LGP EL0519 Supply of Electricity - Accepted Rates	17/07/19 Item 15.06	Local Government Procurement completing evaluations and pending Council notification.	DCP	Sep-19 Oct-19	Dec-19
Protection of Public Infrastructure Bonds Fee	18/09/19 Item 13.08	Given the research required to prepare benchmarking of similar fees and the limited resources currently available within the Infrastructure Planning section, it is requested that this report be moved to December 2019.	DI	Nov-19	Dec-19
Tuffins Lane Sporting Fields - Terms of Agreement	14/12/16 Item 06.02	Awaiting Catholic Parish advice	GM	Oct-18 Mar-19 Apr-19 Jul-19	Dec-19
Markets Policy and local markets & Hay Street Forecourt Tuesday Real Food Market Compliance Report	21/11/18 Item 11.03 & 20/02/19 Item 11.01		DSG		Dec-19
Council owned lots at North Shore - Progress of Sale	19/09/18 Item 09.24)	Council is currently in the process of obtaining DA's for the individual lots, prior to sale - this will provide assurance to future purchasers that the lots can be built on.	DSG		Dec-19
Proposed Primary Airport Access Road Intersection with Oxley Highway	21/08/19 Item 13.01		DI		Dec-19
Water Security	18/09/19 item 13.06		DI		Dec-19
Draft Planning Proposal Policy - Post Exhibition	16/10/2019		DSG		Dec-19
Sustainability Initiatives and Programs	16/10/2019 Item 13.01		DDE		Dec-19
T-19-38 Supply and Delivery of Electrical Goods	16/10/2019		DI		Dec-19
T-19-09 Supply and Delivery of Ready Mix Concrete - post negotiations	19/06/19 Item 15.04	Still negotiating	DI	Aug-19 Oct-19	Dec-19
T-19-10 Supply and Delivery of Road Construction Materials - post negotiations	19/06/19 Item 15.05	Still negotiating	DI	Aug-19 Oct-19	Dec-19
Canal Maintenance	18/10/17 Item 12.04		DI		2018/2019 FY
Planning Proposal – Lot 2 DP1091253 Beach Street Bonny Hills	19/04/16 Item 12.02	Awaiting advice from proponent	DSG	Sep-19 Nov-19	Feb-20
Planning Proposal Request PP2011 - 9.3: The Ruins Way and South Blackwood, Port Macquarie	19/06/19 Item 13.06	Awaiting advice from proponent	DSG	Aug-19 Sep-19 Nov-19	Feb-20
PP: Bundaleer Aged Care - 67 High Street & 4-8 Johnstone Street, Wauchope - Gateway Determination	15/08/18 Item 12.04	Awaiting response from proponent	DSG	Sep-18 Oct-18 Feb-19 Apr-19 May-19 Jul-19 Sep-19 Nov-19	Feb-20
QFPM - Enforcement of Unlawful Activity Policy - findings of review	18/07/18 Item 09.07	Policy being drafted. Awaiting further advice and discussions with Councillors.	DDE	Dec-19 Feb-19 Mar-19 Apr-19 Jun-19 Jul-19 Aug-19 Oct-19	Feb-20
2020 Ordinary Local Government Election	20/02/19 Item 09.07		DCP		Feb-20
Planning Proposal - Airport Business Park - post exhibition	17/07/19 Item 13.05	Awaiting additional information from the proponent to allow for the gateway determination to be issued.	DDE		Feb-20
Planning Proposal - Airport Business Park - draft DCP approval	17/07/19 Item 13.05	Awaiting additional information from the proponent to allow for the gateway determination to be issued.	DDE		Feb-20
JH Taylor & MJ Taylor vs PMHC - report when finalised	18/09/19 Item 15.03		DCP		Feb-20
Beach to Beach Project - Progress Report	16/10/2019 Item 10.04		DI		Feb-20
Future of Committees following establishment of Cultural Steering Group	19/04/17 Item 15.05	Item is to be discussed at a future Cultural Steering Group meeting, following the adoption of the Cultural Plan	DSG	Jun-17 Jul-17 Sep-17 Oct-17 Feb-18 Apr-18 Jul-18 Sep-18 Feb-19 Apr-19 May-19 Nov-19	Mar-20
Classification as "Operational" Land - 52 John Oxley Drive, Port Macquarie - post exhibition.	20/06/18 Item 14.05		DSG		Mar-20
Port Macquarie Aquatic Facility - Progress of detailed design and Strategic Concept Plan	18/09/19 Item 11.02		DDE		Jun-20
Port Macquarie Aquatic Facility - Outcome discussions with displaced user groups of Macquarie Park	18/09/19 Item 11.02		DDE		Jun-20
Trialling Of Parklets In The Port Macquarie Town Centre	16/05/18 Item 10.02	Council is still working the relevant approvals	DSG		Aug-20
MOU - Norfolk Island Regional Council - income and expenditure administration.	20/03/19 Item 09.02		GM		Feb-21
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.	10/08/16 Item 12.01		DDE		2021 (estimate)
Ocean Drive Duplication - Outcomes of RMD Review	18/09/19 Item 13.09		DI		TBA
Design Rainbow Beach Design of Rainbow Beach Sporting Fields & Construction of School to School Shared Pathway - outcome of procurement strategy for each project	16/10/2019		DI		TBA

Cyclic Reports

Report	Reporting Officer	Reporting Cycle	Month	Altered Report Date
Mayoral Discretionary Fund Allocations	GM	Monthly	Every
Monthly Financial Update	DCP	Monthly	Every (except July)
Investments	DCP	Monthly	Every
Recommendations by the Mayor’s Sporting Fund Sub-Committee	DSG	Monthly	Every	Nil for Nov-19
Development Activity and Assessment System Performance	DDE	Quarterly	May, Aug, Nov, Feb
Operational Plan – Quarterly Progress	DCP	Quarterly	Nov, Feb, May, Aug
Management of Flying-Fox Colony in Kooloonbung Creek Nature Reserve - Quarterly Progress Report (15/08/18 - Item 12.08)	DDE	Quarterly	Dec, Mar, June, Sep
Legal Fees - Update Report (19/09/18 - Item 09.16)	DCP	Quarterly	Feb, May, Aug, Nov
Grant Application Status Report (21/08/19 - Item 11.02)	DSG	Biannual	Feb, Aug
Glasshouse Strategic Plan Update	DCP	Biannual	Feb, Aug
Digital Technology Project Status (16/08/17 - Item 09.18)	DCP	Biannual	Feb, Aug
Delivery Program – Six Monthly Progress	DCP	Biannual	Mar, Sep
Update on Site Specific Planning Proposal Requests	DSG	Biannual	Apr, Oct	Nov-19
Mayoral and Councillor Fees (Setting of)	GM	Annually	May
Long Term Energy Strategy – Progress	DDE	Biannual	May, Nov
Economic Development Strategy - Progress (20/11/2013 - Item 10.03)	DSG	Biannual	May, Nov
Performance of Property Investment Portfolio 6-Monthly (12/12/17 - Item 09.09)	DSG	Biannual	May, Nov
Council Policy - Status	DCP	Annually	Jul
Recreation Action Plan – Status	DDE	Annually	Jul
UGMS - Annual Progress Report on Implementation and Status of Actions (20/06/18 - Item 12.07)	DSG	Annually	Jul	Apr-19
Local Preference Policy Outcomes	DCP	Annually	Aug
Annual Report of the Activities of the Mayor’s Sporting Fund	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	DCP	Annually	Sep
Cultural Plan 2018 - 2021 - Implementation Progress Report (19/09/18 - Item 10.02)	DSG	Annually	Sep
Koala Recovery Strategy Annual Report (19/09/18 - Item 12.05)	DDE	Annually	Sep	Oct-19
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 (21/10/15 - Item 09.04)	DCP	Annually	Nov
Compliments and Complaints Annual Report	DSG	Annually	Dec

Attachments

Nil

AGENDA Ordinary Council

20/11/2019

Item: 10.10

Subject: Financial Impact of Cost Shifting from Other Levels of Government

Presented by: Corporate Performance, Rebecca Olsen

Alignment with Delivery Program

1.3.3 Ensure there is appropriate management of risk to mitigate impact for Council and the community.

RECOMMENDATION

That Council note the information on the financial impact of cost shifting from other levels of Government.

Executive Summary

At the Ordinary Council meeting held on 21 October 2015, Council resolved:

RESOLVED: Hawkins/Sargeant

That Council:

1. Request the General Manager provide a report to the November 2015 Ordinary Meeting of Council on the impact of cost shifting on Council in the 2014-2015 financial year, updating the draft figures provided to Council in May 2015.

2. Request the General Manager provide an updated report to the November 2016 Ordinary Meeting of Council on the impact of cost shifting for the financial year 2015-2016 and annually, including any additional categories of cost-shifting that have been identified.

3. Request that the General Manager give consideration to collecting additional cost shifting information as part of the service review process.

carried: 8/0

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

Against: Nil

This report addresses the annual update as per resolution 2. It provides information with respect to the estimated financial impact of cost shifting on Port Macquarie-Hasting Council for the 2018-2019 financial year.

Discussion

Definition

Cost shifting is defined by Local Government NSW as follows:

“Cost shifting describes a situation where the responsibility for, or merely the costs of, providing a certain service, concession, asset or regulatory function are 'shifted' from a higher level of government on to a lower level of government without providing corresponding funding or the conferral of corresponding and adequate revenue raising capacity.”

Local Government NSW Survey

Local Government NSW coordinates a cost shifting survey of all NSW Councils in order to establish the impact of cost shifting by the Australian and NSW Governments to NSW Local Government. The last survey was 2015-2016. In that survey, the dollar impact of cost shifting for Port Macquarie-Hastings Council was $9.7m which included $1.9m of identified new items including fluoridation of water, maintaining of crown reserves, and cost of maintaining RMS transferred assets.

The most recently published LGNSW Council Survey report, “The Impact of Cost Shifting on Local Government in NSW: A Survey of Councils”, (released October 2018), highlighted that despite the recognition of cost shifting and its adverse impacts on NSW Local Government, cost shifting continues to increase. The key points of the report are as follows:

· Cost shifting in 2015-2016, (approximately $820m), was estimated to have increased significantly from $380m in 2005-2006.

· Cost shifting increased from 7% of total income before capital in 2013-2014 for all councils who responded to 7.5% in 2015-2016. Council’s cost shifting as a proportion of total income before capital increased from 6.1% in 2013-2014 to 8.0% in the most recent 2018-2019 period.

· Not only does cost shifting continue to grow, it is growing at an accelerated rate. Council’s 2018-2019 cost shifting impact represented a 3.3% increase on the previous year.

· Per annum cost shifting has more than doubled in the last decade. This is due largely to State Government policies, in particular the waste levy, with the Federal Government responsible for only 2% of cost shifting borne by councils. Cost-shifting impacts on Council from Federal Government represented 11.3% of total impacts in 2018-2019.

· The most significant areas of cost shifting in 2015-2016 were as follows:

- Waste levy: this was the biggest cost shifting impact on Councils, (44% of Council’s total impact in 2018-2019);

- Emergency Services levy: councils paid $127m in mandatory contributions to fund the State Government emergency service agencies, (7% of Council’s total impact in 2018-2019, including NSW Fire Brigade and RFS);

- State libraries: there was a $130m shortfall in funding required to operate public libraries, (6% of Council’s total impact in 2018-2019);

- Pensioner rebates cost the industry $61m, (11% of Council’s total impact in 2018-2019).

Impacts on Port Macquarie-Hastings Council

This Council report utilises the Local Government NSW cost shifting survey methodology as the basis for compiling figures with the following exceptions:

· The cost survey records a zero for any net positive amounts. This report records these as a reduction in the impact. That is, all things being equal, this report would show a lower figure than the survey.

· Further categories have been identified that are deemed to be cost shifting beyond those collected and reported in the survey.

As detailed in the table below, which shows total cost shifting at both the State and Federal levels, the impact of cost shifting, (being the total of all identified net expenditure items reduced by the total of net positive amounts) is:

- $7.9m in 2014-2015, ($6.3m State, $1.6m Federal)

- $9.2m in 2015-2016, ($7.7m State, $1.5m Federal)

- $10.8m in 2016-2017, ($9.4m State, $1.4m Federal)

- $12.9m in 2017-2018, ($11.3m State, $1.6m Federal)

- $13.4m in 2018-2019, ($11.9m State, $1.5m Federal)

- $14.0m budgeted in 2019-20, ($12.5m State, $1.5m Federal)

The following graph illustrates the above impact:

This is a significant impost on Council.

Cost Shifting Data

The following table identifies costs shifting impacts separated between those arising from State government impacts and those arising from Federal government impacts:

As noted above, the amounts quantified in the total cost shifting impacts are not exhaustive of the cost shifting impact on Council. Other impacts of cost shifting that are currently being absorbed by Council or will be absorbed by Council into the future are described as below. The estimated impact of these items on the total cost shifting amount for 2018-2019 is follows, notwithstanding that not all items are able to be quantified at this time:

	2018/2019 Actuals ($’000)
Total of Cost Shifting Impacts from Table Above	13,384
Cumulative Ongoing Impact of Indexation Freeze on Financial Assistance Grant	870
Non Rateable Properties	2,000
Impacts of Biodiversity Conservation Act	25
TOTAL IMPACT	16,279

Financial Assistance Grant

In addition to cost shifting, another factor noted as having a financial impact to Council is the Federal Government’s decision to pause indexation to the Local Government Financial Assistance Grants (FAG) Program for the three years commencing 1 July 2014. The table below illustrates the FAG allocation during this period and shows that the grant reduced by $269k despite inflationary pressures:

Year	Total Allocation $k
2013/14	$8,844
2014/15	$8,842
2015/16	$8,764
2016/17	$8,575

Although the freeze has now been lifted, the cumulative effect of this it will continue to impact into the future. When comparing the actual FAG allocation between 1 July 2014 and 30 June 2019 to what would have been received had a reasonable indexation been applied, it estimated that Council has incurred a cumulative loss of $3.1m.

Non Rateable Properties

There are a number of properties within the LGA for which Council does not levy rate income due to them being exempt from rates under legislation, for example Crown land, national parks, land used by religious bodies, schools. The amount of rates forgone during 2018-19 for such properties was approximately $2.0m. This estimation does not however take into account that valuations are not available for all these properties and therefore there are some for which an ad valorem rating component has not been included, i.e. this is a conservative estimate and the actual impact is likely to be higher.

Infrastructure works associated with development undertaken by other levels of Government

Other levels of government often construct infrastructure such as hospitals and schools. Whilst there is a significant benefit from this investment, unlike private development, these government developments are exempt from paying development

contributions.

The provision of such developments can often also require that Council provide prioritised associated infrastructure such as footpaths without contributing towards the cost of that infrastructure.

Impacts of the Forestry Corporation

With such large areas of State Forest within our LGA, activities conducted by the Forestry Corporation such as timber logging has a significant impact on the wear and tear of Council assets, specifically our rural roads and timber bridges. This activity impacts significantly on maintenance programs and costs of our rural network. State Forests are exempt from Rates, hence the deterioration of Council assets and the associated increase in maintenance costs is borne by the community.

Impacts of the Biodiversity Conservation Act

Under the Biodiversity Conservation Act, in effect since February 2018, Council was handed responsibility for regulation of native vegetation management on Rural Residential and E-Zoned land. This was previously regulated by the OEH and involves increased environmental planning approvals including review of reports generated as per the Act. These reports include specialized ecological reports which require an accredited ecologist to undertake the review. Training for the increased planning approvals continues to result in additional expenditure with costs of approximately $25k incurred in 2018-19 and a forecast of $3k in 2019-20. Review of the new reports can also add up to 3 hours per applicable DA, which over a year may equate to 1 month of staff time.

Impacts of the Coastal Management Act 2016

The Coastal Management Act 2016 regulates Council to undertake Coastal Management Plans that outline all actions to occur along coastal areas. Works undertaken by Council that are not included in an approved Coastal Zone Management plan require a DA. The Coastal Management SEPP gives effect to the objectives of the Act by specifying how development proposals are to be assessed if they fall within the coastal zone and changes to this legislation were imposed in April 2018. Mapping of proximity zones and littoral and coastal wetlands have moved numerous projects from the REF pathway to a DA pathway which has increased environmental approvals for works undertaken. This change has resulted in increased time, money for environmental assessments and offset expenditure.

Impacts of the Crown Land Management Act

Changes to the Crown Land Management Act came into effect 1 July 2018 with the implementation of a new reserve management structure. Impacts include increased responsibilities for Native Title assessments and Aboriginal Land Council referrals, and the development of new plans of management for Crown reserves managed by Council. The changes in legislation have impacted Council resources across a number of areas.

Potential Additional Future Impacts

Council has identified items which may have a potential future impact. These include:

· The NSW EPA has transferred responsibility for the implementation and enforcement of the Underground Petroleum Storage System (UPSS) Regulation to local government from 1 September 2019. Council staff have completed / will implement a number of actions including the following:

- Proactively identified at least 59 active premises within the LGA in preparation of the changes.

- Develop a register of UPSS sites.

- Attend EPA capacity building workshops for assistance in the transfer of the UPSS regulation.

- Work with environmental health staff from neighbouring councils to develop a uniform approach to the regulation of UPSS systems within the Mid North Coast.

- Develop a risk rating system to identify high-risk premises.

- Undertake a compliance audit program from February 2020 and periodic routine inspections.

- Liaise and provide education material to sites with UPSS to encourage compliance.

- Respond to pollution complaints.

- Receive annual reports on each system to review.

The full cost impact of the above is unknown at this stage, as it is dependent upon the outcomes of some of the above points. It will however result mainly in additional staff costs, and the impacts will be quantified once the full effects are understood.

· Legislative changes in bushfire planning and management are expected to have resourcing impacts across a number of areas. These include fire trail annual inspections on council land, ensuring compliance with requirements for bushfire protection measures, delivery of Crown land plans of management for council managed land incorporating bushfire mitigation works and increased environmental approval requirements to deliver bushfire mitigation works as a result of changes to the Coastal SEPP. Whilst these changes did not result in additional costs during 2018-19, various works are planned for 2019-20, the impacts of which will be quantified once the full effects are understood.

· The State Health Department has previously foreshadowed that they will be passing responsibility for regulating private water supplies to councils at some undetermined time in the future. There are however currently no indications of this occurring in the short term.

· China has enforced restrictions on the importation of recycled materials under its “National Sword” policy which became effective 1 January 2018. This has put considerable pressure on the processing of recycled waste and may lead to further impacts on the waste levy payable by Council.

The full quantum of the above items is yet to be determined.

Financial Impact of Cost Shifting on Council’s Operational Plan and Long Term Financial Plan

Cost shifting impacts Council’s available funds to deliver quality services and infrastructure, and its operating performance.

The impact of cost shifting could otherwise improve Council’s operating position and/or be spent on some of the following:

- Additional services to the Community.

- Increasing current service levels to the Community.

- New infrastructure works.

- Increased maintenance expenditure.

- Increased spend on renewal of assets.

Some of these items would lead to a better overall performance against TCorp ratios and improve Council’s financial sustainability.

Options

This report is for information purposes.

Community Engagement & Internal Consultation

There has been no community engagement.

Planning & Policy Implications

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

Financial & Economic Implications

This report discusses the impact of cost shifting imposed on Council from both the Federal and NSW Governments.

This cost shifting has an effect on Council’s financial position and ability to deliver to the community.

Attachments

Nil

AGENDA Ordinary Council

20/11/2019

Item: 10.13

Subject: Quarterly Budget Review Statement - September 2019

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 Quarterly Budget Review Statement for the September 2019 Quarter.

Executive Summary

This report will detail Council’s progress against the original and revised 2019-20 budget as at the end of the first quarter being 30 September 2019.

Discussion

The Quarterly Budget Review Statement (QBRS) is a statutory report prepared in accordance with sections 202 and 203 of the Local Government (General) Regulation 2005 (‘Regulations’).

The QBRS presents a summary of Council’s financial position at the end of the first, second and third quarter of the financial year. It is a mechanism whereby the Councillors and the community are informed of Council’s progress against its current adopted budget.

Whilst the Regulations require the Council, as a minimum, to prepare quarterly revised estimates of income and expenditure through the QBRS, Port Macquarie- Hastings Council adopts budget variations on a monthly basis.

Attached to this report (Attachment 1) are the mandated components of the QBRS as prescribed in the ‘NSW Local Government Code of Accounting Practice and Financial Reporting’. Those components include:

1. Budget Review Income and Expenditure (Consolidated);

2. Budget Review Capital Budget;

3. Budget Review Cash and Investment;

4. Budget Review Key Performance Indicators;

5. Budget Review Contracts and Other expenses; and

6. Statement by the Responsible Accounting Officer.

Also attached is a confidential attachment (Attachment 2) 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

Confidential Attachment 2 titled “Confidential - September 2019 Quarterly Budget Review - 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).

Budget Progress Commentary

The variances listed below should be read in conjunction with Attachment 1 (September 2019 Quarterly Budget Review Statement).

Income and Expenses – QBRS Page 1

Rates and Annual Charges

YTD Budget

YTD Actual

Budget Variance

% Received

$94.518m

$94.735m

+$0.217m

100.2%

Major budget variances include:

- Annual Charges: +$0.45m

- Rates: -$0.233m

The variance in annual charges is generally driven by an increase in the domestic waste charge. There has been an increase in the volume of assessments processed for the quarter due to the timing of completion of new homes. This variance is partially offset by a decrease in residential general rates for the quarter as compared to budget. The rating department is currently awaiting the provision of land values on newly built premises to allow the completion of the rating process.

User Fees and Charges

YTD Budget

YTD Actual

Budget Variance

% Received

$7.384m

$6.067m

-$1.317m

82.2%

Major budget variances include:

- Water Supply Usage Charges: -$0.413m

- Building & s68 Fees: -$0.197m

- Waste Management Charges: -$0.289m

- Aerodrome -$0.306m

The variance associated with usage charges for water supply is caused by both the timing of receipts and the billing cycles whose frequency at times does not align with the phasing of the budget and also the general decreased water usage due to current water restrictions. Variances in the building fees are due to the level of building activity for the quarter being slightly less than budgeted. Waste management charges are lower than budgeted due to a decrease in community usage resulting in lower tipping fees collected at waste facilities. Aerodrome user fees are lower than budgeted due to the timing of passenger head tax invoices from airlines. These will be processed in October.

Interest and Investment Income

YTD Budget	YTD Actual	Budget Variance	% Received
$2.119m	$2.098m	-$0.021m	99.0%
There are no major or material budget variances.

Other Revenues

YTD Budget

YTD Actual

Budget Variance

% Received

$1.281m

$1.445m

+$0.164m

112.8%

Major budget variances include:

- Sale of Steel: +$0.143m

Steel has been sold from the Cairncross, Port Macquarie and Wauchope waste depots in the quarter. Consideration received is in excess of budget.

Operating Grants & Contributions

YTD Budget

YTD Actual

Budget Variance

% Received

$1.672m

$2.210m

+$0.538m

132.2%

Major budget variances include:

- RTA Block Grant: +$0.402m

RTA Block Grant YTD budget will require re-phasing to align with timing of actual receipts. The phasing of receipts is on a quarterly basis but due to the pre-payment of 50% of this grant the phasing is no longer in line with actual receipts.

Capital Grants & Contributions

YTD Budget

YTD Actual

Budget Variance

% Received

$4.707m

$4.926m

+$0.219m

104.7%

Major budget variances include:

- Section 94 Developer Contributions: +$0.68m

- Section 64 Contributions: -$0.415m

The developer contributions variance is due to a slightly higher level of activity in the development environment.

Employee Costs

YTD Budget	YTD Actual	Budget Variance	% Expended
$13.592m	$12.282m	+$1.310m	90.4%
The favourable variation that has occurred in employee costs, is due to the timing of employees taking leave, vacancies across the organisation and the level of capitalised labour.

Borrowing Costs

YTD Budget	YTD Actual	Budget Variance	% Expended
$0.421m	$0.421m	+$0.0m	100.0%
There are no major or material budget variances.

Materials & Contracts

YTD Budget

YTD Actual

Budget Variance

% Expended

$8.533m

$7.516m

+$1.017m

88.1%

Major budget variances include:

- Natural Resources: $0.112m

- Transport & Traffic: $0.561m

- Waste Management: $0.229m

- Parks & Recreation: $0.170m

The variations that have occurred in the materials and contracts category have occurred over various projects and departments which are at various stages. The timing of invoice payments in relation to on-going services is the cause of other variations.

Depreciation

YTD Budget	YTD Actual	Budget Variance	% Expended
$12.284m	$12.682m	-$0.398m	103.2%
The increased expenditure is impacted by the timing of project completion and capitalisation, disposals and contributed assets capitalised, as compared to what was originally anticipated.

Other Expenses

YTD Budget	YTD Actual	Budget Variance	% Expended
$3.288m	$3.351m	-$0.063m	101.9%
The minor favourable variances in other expenses are timing related.

Asset Disposal

YTD Budget	YTD Actual	Budget Variance	% Expended
$0.0m	-$0.054m	+$0.054m	0%
This minor variance to budget is due to motor vehicles being sold at auction in Q1.

Capital Expenditure – QBRS Page 2

YTD Budget

YTD Actual

Budget Variance

% Expended

$27.880m

$11.230m

-$16.650m

40.3%

The timing of completion of many projects has moved out in this financial year. With a high level of carry-over projects taken up in 2019/20, the projects which were budged to start early in the year are now being forecast to begin later, as carry-over projects are completed as priority. Projects with budgets that are materially different to actuals include:

- Small Village Sewer Scheme: -$4.111m

- The project continues from previous financial years, with construction completion of all three towns due by July 2020. Variance to budget is due to the timing of contractor progress claims.

- Dunbogan Bridge Rehabilitation: -$1.091m

- Works underway on Dunbogan bridge, targeting completion in early 2020. Variance is due to timing.

- Reclaimed Water - Area 14 Trunk Main: -$0.638m

- Construction commenced March 2019. Project is on budget, with works forecast to be complete by December 19, well inside the EPA deadline of June 2020. Variance is timing.

- Airport Terminal Upgrade: -$0.493m

- Terminal Building Upgrade Stage 1 works complete and Stage 2 works on target for completion by the end of November. The variance to budget is due to the timing of contractor progress claims.

- Footpath, Cycleway, Pedestrian Management: -$0.331m

- Remaining works in Hill St scheduled for completion in 2019.

- Lighthouse Rd Upgrade: 0.285m

- Project complete under budget.

- Road Resealing Works: -$0.810m

- Program on track. Variance due to timing of payments.

- Kingfisher Waste Depot Upgrade: -$0.250m

- The project is currently in design phase, with the project awaiting Construction Certificate approval, construction works are due to commence in approximately one month.

- ICT Projects: -$0.420m

- Projects ongoing. Variance due to timing of payments.

- Annual Sewer Allocations: -$0.654m

- Projects ongoing. Variance due to timing

- Annual Water Supply Live Water Main Renewals: -$0.412m

- Projects ongoing. Variance due to timing.

There are a large number of smaller projects from various areas of Council which are also currently underspent when comparing their actual expenditure to year to date budgets:

- Sewer Supply projects: -$1.777m

- Transport & Traffic Projects: -$2.221m

- Drainage Projects: -$0.420m

- Parks & Recreation Projects: -$1.907m

The actual expenditure does not reflect the amount of funds that have been committed to particular projects through the raising of purchase orders. For capital projects, progress against their budgets may not necessarily reflect their progress in relation to physical completion.

Progress details for particular capital projects can be found in the report “2019-2020 Operational Plan Quarterly Progress Report as at 30 September 2019” which is also on the agenda of the Ordinary Council Meeting for November 2019 and contained within the business paper.

Cash and Investments – QBRS Page 3

The return on Councils investment portfolio for the financial year as at 30 September 2019 was 2.90% which was 1.75% above the benchmark of 1.15%.

Key Performance Ratios – QBRS Page 4

The budget variations and carry-overs that have been adopted throughout the financial year (July-August) have not had a detrimental or material impact on a number of the forecasted T-Corp ratios set out in the adopted original budget.

The forecast Operating Performance Ratio has decreased from the original budget due to the increase in operating expenses associated with the carrying over of operational projects from 2018/19 which have been only partially offset with an increase in operating revenues.

The Building and Infrastructure Renewals Ratio has significantly improved also as a result of the adoption of the carry overs which are significant.

The Unrestricted Current Ratio has decreased due a shift in the investment portfolio where Council has invested in longer term investments during the period.

Contracts and Other Expenses – QBRS Page 5-7

There were no unbudgeted contracts entered into during the first quarter of the financial year. There was no expenditure incurred for consultancy or legal expenses that was not budgeted for during this quarter.

Statement by Responsible Accounting Officer

Below is a statement made by Council’s Responsible Accounting Officer made in pursuant to section 203(2) of the Regulations:

Options

Council may adopt the recommendation or amend as required.

Community Engagement & Internal Consultation

Not applicable

Planning & Policy Implications

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

Financial & Economic Implications

As indicated in the QBRS, the projected operating result for Council on a consolidated basis, as at 30 June 2020, is a surplus of $2.001m and this result is satisfactory. However, there continues to be a budget deficit for the 2019/20 financial year which will need to be remedied during the remainder of the year through favourable budget variations.

Attachments

1 View. September 2019 Quarterly Budget Review Statement

2 View. Confidential - September 2019 Quarterly Budget Review - Consultancy Engagements (Confidential)

AGENDA Ordinary Council

20/11/2019

Item: 10.14

Subject: 2017-2021 Delivery Program and 2019-2020 Operational Plan - Quarterly Progress Report as at 30 September 2019

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 2019-2020 Operational Plan Quarterly Progress Report as at 30 September 2019.

Executive Summary

The 2019-2020 Operational Plan is a sub-plan of the 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 details 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 all actions set out in the 2019-2020 Operational Plan. The overview section in this report provides an overall statistical snapshot of 2019-2020 Operational Plan performance by Community Theme. Further detail is provided below in each theme highlighting achievements with actions.

A further attachment to this report provides the full 2019-2020 Operational Plan progress report, which includes a comprehensive listing of each individual action 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 four year Delivery Program 2017-2021.

The legislated requirement to report progress 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 2020. Six monthly progress reports on the Delivery Program are a legislated requirement of the NSW Government’s Integrated Planning and Reporting Framework.

All capital works projects are incorporated into the body of the Operational Plan and as such are reported on as individual actions. A number of projects may have design and construction elements and therefore can span across multiple years.

Attachment A to this report provides details of actions that are experiencing delays in delivery against the 2019-2020 Operational Plan.

Attachment B to this report outlines what Council has delivered against each Operational Plan action, activity or project and seeks to provide concise and accurate commentary on progress and also aligns to Delivery Program objectives and the Community Strategic Plan.

Discussion

(a) Overview - 2019-2020 Operational Plan – Quarterly Progress Report as at 30 September 2019

The Operational Plan sets out the actions and projects that will be undertaken each financial year to deliver the overall objectives in the Delivery Program. Achievement of these objectives contributes to achieving the vision and goals in the Community Strategic Plan.

The 2019-2020 Operational Plan contains 375 performance measures. As at 30 September 2019, 88% are on target for delivery and 12% are reported as behind. The table below provides a summary of the total number of performance measures and the status by Community Theme.

2018-2019 Operational Plan summary of performance measures by theme
Community Theme	Total No.	On Target/ Achieved	Behind	Overall Delivery (%)
Leadership and Governance	88	82	6	93%
Your Community	84	76	8	91%
Your Business and Industry	25	24	1	96%
Natural and Built Environment	178	147	31	83%
Total	375	329	46	88%

The table below is comparative data of historical Operational Plan performance and provides information outlining year on year progress against the adopted 2019-2020 Operational Plan.

(b) Delivery Program 2017-2021 and 2019-2020 Operational Plan - Progress Report as at 30 September 2019

The Delivery Program outlines the Councillors’ commitments to the Port Macquarie-Hastings community during their four-year term of office. Objectives in the Delivery Program represent what the Council aims to deliver and serves as a guide for Council’s Executive and staff when developing the annual Operational Plan.

In a broad context, the Delivery Program enables Council to deliver the community’s aspirations for the future, as described in the Towards 2030 Community Strategic Plan. The Delivery Program objectives appear in each of the four Community Themes outlined below:

· Community Theme 1 – Leadership and Governance

· Community Theme 2 – Your Community Life

· Community Theme 3 – Your Business and Industry

· Community Theme 4 – Your Natural and Built Environment

Each of the themes in the Delivery Program describes what the expected result will be if the overall objectives are achieved and detail what the intended outcome will be.

The information below demonstrates Council’s achievements to date and highlights ‘how we know we are progressing’ against the set objectives outlined in the Delivery Program 2017-2021.

A snapshot of progress on various projects across the region is provided below

Laurieton/Camden Haven/surrounds

· Rainbow Beach Sports Fields has project planning phase commenced

· Riverview Reserve playground upgrade has planning commenced

· Scribbly Bark Reserve playground replacement has planning commenced

· Construction of the Kew Sewerage Treatment Plant has detailed designs and environmental approvals progressing

· Bold Street Pedestrian crossing in Laurieton has revised designs under development as a result of new crossing location

· Comboyne Small Town Sewerage Scheme provision of a centralised sewerage system has construction ongoing as planned

· Stormwater flood mitigation measures at Rodley Street Bonny Hills has construction ongoing and progressing

· Dunbogan Bridge substructure rehabilitation work is underway and progressing

Port Macquarie

· Blair Reserve playground upgrade has planning commenced

· Flynns Beach seawall upgrade and replacement has construction ongoing and progressing

· Red Ochre new park development has planning commenced

· Ruins Way new park development has planning commenced

· Settlement Point Reserve playground replacement has planning and community engagement underway

· Stuart Park - Regional Sporting Precinct upgrades have commenced with the Port Macquarie off leash dog park area and playground complete

· Town Beach Park playground replacement has planning and community engagement underway

· Port Macquarie Pool has had extensive community consultation undertaken to determine the preferred site location, with Macquarie Park confirmed, designs have now commenced and are progressing

· Port Macquarie Airport Terminal upgrade has Stage 2 works progressing

· Port Macquarie Airport - Parallel Taxiway Stage 1 concept design finalised and the tender for environmental impact assessment underway

· Port Macquarie Sewer Treatment Plant inlet replacement work has finalised designs being undertaken

· The Ruins Way reconstruction works has preconstruction planning underway

· Port Macquarie Coastal Walk upgrades has construction commenced on the Charlie Upton stage. Planning works for the Doctors Walk and Kenny walk sections has commenced

Wauchope/Rural/surrounds

· Hastings Regional Sporting Complex has design works progressing

· Reservoir Park playground replacement has planning commenced

· Rocks Ferry Reserve playground upgrade has planning commenced

· Bago Road pavement rehabilitation (Milligans Road to Bluewater Cres) has preconstruction planning underway

· Long Flat and Telegraph Point Small Town Sewerage Scheme provisions of a centralised sewerage system has construction ongoing and progressing

· Pembrooke Road - Stoney Creek Bridge upgrade has project design planning commenced

Summary of highlights are outlined below by Community Theme, Delivery Program Objective and Council Service

COMMUNITY THEME: LEADERSHIP AND GOVERNANCE

Operational Plan summary of performance measures
2019-2020	Total No.	On target	Achieved	Behind	Overall %
1Q - July – Sept 2019	88	75	7	6	93%
2Q - Oct – Dec 2019
3Q - Jan – Mar 2020
4Q - Apr – Jun 2020

What are we trying to achieve

A collaborative community that works together and uses opportunities for community participation in decision making that is defined as ethically, socially and environmentally responsible

What the result will be

· A community that has the opportunity to be involved in decision-making

· Open, easy, meaningful, regular and diverse communication between the community and decision-makers

· Partnerships and collaborative projects that meet the community’s expectations, needs and challenges

· Knowledgeable, skilled and connected community leaders

· Strong corporate management that is transparent

How do we know we are progressing

· Improving levels of community participation at community engagement activities

· Ongoing Council participation in regional Local Government initiatives

· Council financial management that is communicated to the community

Highlights by Council Service and Delivery Program Objective

Council Service: Communications and Community Place

Delivery Program Objective: 1.1.1 Use a variety of tools to engage with the community in a manner that is transparent, effective, relevant and inclusive

· Over 230 Media releases, statements, alerts and announcements were issued

· Total number of visits to Council's website was over 271,100. Website page views was over 412,800. This represents an increase of over 7.61% and 9.08% respectively on the same period last year

· Likes for the corporate Facebook page increased from 9,129 as at 30 June to 9,565 as at 30 September 19. Representing an increase of 4.78%

· 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 and Weekly Mayoral messages

· Registered users on Council’s ‘Have Your Say’ online engagement portal as at 30 September was 4,041 and increase from 3,880 as at 30 June 2019

Council Service: Community Place

Delivery Program Objective: 1.1.2 Support community involvement in decision making through education around Council matters and services

· Community members were involved in a variety of community engagement activities that involved face-to-face engagement via drop-in information sessions, group engagement and pop-up information sessions, Community-Council Action Team Meetings and Community Think Tank Workshops

· Draft Community Plans have been completed for Bonny Hills, Camden Haven, Comboyne/Byarbarra and Kew/Kendall/Herons Creek/Lorne.

· Draft Community Plans under development for Telegraph Point, Lake Cathie, North Shore and Pappinbarra communities.

Delivery Program Objective: 1.1.3 Engage with the community on impacts and changes to services

· Development of a community engagement program is underway with a review of the policy and strategy

· A community satisfaction survey is scheduled to take place in the final quarter of 2019-2020

Council Service: Integrated Planning and Reporting

Delivery Program Objective: 1.1.4 Provide easy to understand and accessible community reporting

· An easy to read Community Report Card, highlighting Council’s achievements in delivering outcomes to the community for the 2018-2019 financial year, is under development

· The 2018-2019 Annual Report is scheduled to be presented to the Ordinary Council Meeting in November 2019 meeting legislative requirements

· The 2020-2021 Operational Plan and budget preparation has commenced and is ongoing

Council Service: Communications

Delivery Program Objective: 1.1.5 Develop an effective and coordinated community focused Communications Strategy

· Council has used a broad range of communications channels to keep the community informed of Council initiatives and projects. Including delivering a quarterly rates newsletter, regular media exposure, utilising community newsletters, radio and television advertising and Facebook

· Marketing and education campaigns are ongoing and have included a variety of communication channels to deliver a range of messages including bus stops, signage, Facebook, digital billboard, radio, television, cinema, shopping centre displays and media releases

· Total number of visits to Council's website was over 271,100. Website page views was over 412,800. This represents an increase of over 7.61% and 9.08% respectively on the same period last year.

Council Service: Governance

Delivery Program Objective: 1.1.6 Continue to promote access by the community to Councillors

· Laurieton and Wauchope Ordinary Council Meetings are scheduled for October 2019 and March 2020 respectively as part of the Take the Council to the Community Program

Council Service: General Manager's Office

Delivery Program Objective: 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

· Regular meetings held with Camden Haven, Port Macquarie and Wauchope Chamber of Commerce and also Northside and Lake Cathie Progress Associations with the Mayor and Senior staff in attendance

· Ongoing meetings and or Networking events attended with Federal, State and Local members to advocate for local community needs

Council Service: General Manager's Office

Delivery Program Objective: 1.3.1 Provide effective leadership and equity

· The Mayor and General Manager attended Mid North Coast Joint Organisation (MNCJO) board meeting September 2019

Council Service: Governance

Delivery Program Objective: 1.3.2 Build trust and improve Council's reputation through transparency, good decision making and living Council’s Values

· The 2018-2019 Legislative Compliance Register was reviewed and presented to the Audit, Risk and Improvement Committee and adopted at the September 2019 Ordinary Council Meeting

· Annual Public Interest Disclosures (PID) and Government Information Public Access (GIPA) reporting was submitted in line with required timeframes

· The annual Disclosure of Interest Returns were adopted at the October 2019 Ordinary Council Meeting

Council Service: Governance

Delivery Program Objective: 1.3.3 Ensure there is appropriate management of risk to mitigate impact for Council and the community

· Review of the Corporate Risk Register has been undertaken on a quarterly basis and presented to the Audit, Risk and Improvement Committee

· The Risk Management Action Plan is being developed

Council Service: Human Resource Management

Delivery Program Objective: 1.3.4 Manage our workforce to deliver community outcomes.

· The Workforce Management Strategy actions are being delivered

· The Work, Health and Safety Strategy actions are being delivered

· The Learning and Development Strategy actions are being delivered

Delivery Program Objective: 1.3.5 Build an engaged workforce

· Planning for the Annual Employee Engagement Days are underway

· Planning for the Annual Employee Engagement Survey has commenced

Council Service: Digital Technology

Delivery Program Objective: 1.4.1 Provide efficient technology and inclusive digital systems that are easy to use and easy to access

· Renewal of Council’s technology infrastructure to provide secure and responsive information communication technology is ongoing

Council Service: Business Improvement Office

Delivery Program Objective: 1.4.2 Deliver agreed services at the agreed service level at best value

· Facilitation of process improvements are ongoing to improve productivity across the organisation

· Facilitation of the service review program has commenced using the improvement process

Council Service: Customer interactions

Delivery Program Objective: 1.4.3 Deliver a customer focused service that provides the community a consistent experience of Council

· Over 19,000 calls were received through the Customer Call Centre. 93% of calls were answered within the service standard exceeding the target of 75%

· Over 24,900 counter enquires were processed, and over 7,800 e-mails were received through Customer Service offices in Laurieton, Port Macquarie and Wauchope

Council Service: Financial Management and Assets and Property Investments

Delivery Program Objective: 1.5.1 Manage Council’s financial assets and provide accurate, timely and reliable information

· The audited financial statements are on target to be lodged by October 2019 in accordance with legislated timeframes

· Investment reports tabled in accordance with required timelines

· Investment returns exceeding the benchmark for the financial year to date

· Financial reports tabled in accordance with required timelines

· The Quarterly Budget Review Statement is scheduled to be presented to Council in November 2019

· The 2019-2020 Operational Plan and budget preparation is underway

Council Service: Strategic Landuse Planning

Delivery Program Objective: 1.5.1 Manage Council’s financial assets and provide accurate, timely and reliable information

· The Partridge Creek residential development is planned to have a report tabled at a future Ordinary Council Meeting

· Emily Ave residential development planning has the Development Application lodged

Council Service: Procurement

Delivery Program Objective: 1.5.2 Use procurement, tendering, purchasing and contract management approaches that are transparent and equitable

· The Procurement Strategy implementation is ongoing

· The Plant Replacement Program is currently in the planning phase

Council Service: Commercial Business Units – Glasshouse, Airport and Crematorium and Cemetery

Delivery Program Objective: 1.5.3 Develop, manage and maintain Council Business Units through effective commercial management

· Operating revenue increased at the Airport by 5% in comparison to the same period last year exceeding the 3% target

· Operating revenue increased at the Environmental Laboratory by 24% in comparison to the same period last year exceeding the 3% target

· Identified actions from the Glasshouse Strategic Plan have been delivered. A review of the Glasshouse Strategic Plan commenced in line with the Cultural Steering Group in conjunction with the recently adopted Cultural Plan

Council Service: Asset Management

Delivery Program Objective: 1.5.3 Develop, manage and maintain Council Business Units through effective commercial management

· The six monthly Property Investment Strategy update report is scheduled to be presented to the November 2019 Ordinary Council Meeting

COMMUNITY THEME – YOUR COMMUNITY

Operational Plan summary of performance measures
2019-2020	Total No.	On target	Achieved	Behind	Overall %
1Q - July – Sept 2019	84	73	3	8	91%
2Q - Oct – Dec 2019
3Q – Jan – Mar 2020
4Q – Apr – Jun 2020

Your Community

What are we trying to achieve

A healthy, inclusive and vibrant community

What the result will be

· Community hubs that provide access to services and social connections

· A safe, caring and connected community

· A healthy and active community that is supported by recreational infrastructure

· A strong community that is able to identify and address social issues

· Community participation in events, programs, festivals and activities

How we know we are progressing

· Community facilities are established that encourage social activities and interactions

· Community safety initiatives are recognised and supported

· Open spaces, recreational and community facilities are provided for a range of social, health and wellbeing activities.

· The community is supported through a range of programs based on social issues

· A range of community activities, programs and events are supported and implemented

We know we are progressing on delivering outcomes to the community against the Delivery Program objectives as achievement highlights can be seen below against specific council services

Highlights by Council Service and Delivery Program Objective

Council Service: Sports and Recreation

Delivery Program Objective: 2.1.1 Support Community Safety initiatives

· Lifeguard patrols commenced in September 2019 at Town, Flynns, Lighthouse, Lake Cathie, Rainbow and North Haven Beaches

· The Surf Education Program to commence in School Term 4

Council Service: Emergency Management

Delivery Program Objective: 2.1.2 Advocate for, support and coordinate emergency services

· Coordination and support provided to emergency services as required

Council Service: Compliance

Delivery Program Objective: 2.1.3 Conduct regulatory and educational activities, which safeguard public and environmental health, and ensures compliance with planning and building standards

Monitoring and taking action to ensure compliance issues are managed has seen a range of inspections undertaken, some of which have included:

· 76 pool inspections

· 56 public health inspections

· 154 on-site sewerage management system inspections

· 18 fire safety inspections

· Over 390 offences recorded by Council Rangers in relation to parking, beach patrols, illegal signage and sale of goods on roads

· Over 400 companion animal incidents were recorded and actioned

Council Service: Commercial Business Units - Environmental Testing

Delivery Program Objective: 2.1.3 Conduct regulatory and educational activities, which safeguard public and environmental health, and ensures compliance with planning and building standards

· Sampling, analysis and reporting of operational and regulatory requests at the Laboratory were completed within the set service standards and budgets

· National Association of Testing Authority corporate accreditation maintained

Council Service: Community Place

Delivery Program Objective: 2.2.1 Support and advocate for all community sectors

· Focus on youth activities including Youth Voice and working with youth on Community Planning

· The first round of community grants has been delivered

· The Draft Community Inclusion Plan is scheduled to be presented to Council in November for public exhibition

Council Service: Community Place

Delivery Program Objective: 2.3.1 Ensure access to community facilities and activities: including access to natural environment

· Delivering actions from the Disability Inclusion Action Plan are ongoing some of which have included:

o The launch of the Short Street accessible amenities including our LGA's first adult change table with an overhead gantry hoist

o Endorsement of a wheelchair viewing platform at the Charlie Uptin Walk a wheelchair accessible picnic table at Kew playground

o Dementia Friendly screening at ArtWalk of an animation created by residents living with memory loss

o Launch of Stuart Park playground and off-leash dog area

o Upgrade of High Street Wauchope, including accessible car parks and footpath improvements

Council Service: Recreation and Buildings and Community Place

Delivery Program Objective: 2.3.2 Provide a range of inclusive sporting and recreational opportunities and facilities to encourage a healthy and active lifestyle

· Implementation of the Recreation Action Plan is ongoing, actions include:

o Hastings Regional Sporting Facility - Stage 1 development has detailed design for the facility progressing;

o Sancrox/Thrumster Sports Fields has the detailed design for the facility commenced;

o Hastings River Recreational Boating Facility has detailed concept plans developed. Land acquisition discussions ongoing with land owners for the project to move to finalisation stage.

o Port Macquarie Coastal walk upgrade has works commenced and ongoing

o Port Macquarie off leash dog park at Stuarts Park is complete

o North Haven to Bonny Hills Coastal Walk has project planning commenced

o Port Macquarie Pool has community engagement undertaken and site selection process complete. Project planning for detailed design underway

o Wayne Richards Park - Stages 3 and 4 has concept plan developed

· Implementation of the Sporting Facility Renewal program is ongoing, actions include:

o Oxley Oval - Sporting Infrastructure upgrade has construction of the clubhouse commenced and ongoing

o Port Macquarie Hastings Hockey Facility - installation of lighting to Field 2 complete.

o Port Macquarie Regional Sports Stadium construction of new training field including lighting is complete.

o Charlie Watt Reserve - Telegraph Point has lighting upgrades commenced

o Andrews Park - Wauchope has construction of lighting system commenced

o Lake Cathie Sports Fields field surface upgrade and installation of irrigation has contractors engaged to deliver scope of works

o Blackbutt Park - Wauchope has project planning commenced for furniture upgrades

o Kendall Sports Ground reserve upgrade has scope of works being confirmed

o Laurieton Sports Complex sports facility upgrade has project planning commenced

· Regional Master Planning for recreational facilities is ongoing:

o Master Planning for Bain Park Wauchope has planning and community engagement commenced

o The review of the Bonny Hills Master Plan has commenced

Delivery Program Objective: 2.3.3 Develop and implement management of operational and maintenance programs for open space, recreational and community facilities

· Maintenance program works for parks, reserves, sporting fields and beaches across the local government area was undertaken some actions include:

o Painting and staining park furniture in Camden Haven, Wauchope and Port Macquarie

o Sports field preparation for weekly fixtures of winter sports

o Preparing sites for events including markets and weddings and other events

o Mowing selected parks and reserves for October school holidays and events

o Garden maintenance in the Port Macquarie CBD area including pruning, watering, weed treatment and mulching

o Garden maintenance (Estate gardens) pruning and weed treatment, e.g. Crestwood, Dahlsford and Lake Cathie.

o Formal inspection of all playgrounds with required maintenance and repairs being undertaken

· All four pools managed in accordance with the pool management and operational guidelines with programmed and reactive maintenance undertaken

· Playground replacement planning has commenced for Blair Reserve, Reservoir Park, Scribbly Bark, Riverview Reserve, Rocks Ferry Reserve, Settlement Point reserve and Town Beach

· The Recreational Walkway Replacement program has planning commenced

· The maintenance program for boat ramps, wharves and jetties is ongoing

· The maintenance program for beaches was undertaken with actions including

o Detailed beach grooming undertaken at all high profile beaches

o Beach accesses maintained and cleaned as required

o Upgrade of beach access at Town Beach

· Rocks Ferry Reserve riverbank revetment extension work is ongoing

· Community engagement finalised for the Kew Community Park. Construction to commence in the second quarter of 2019-2020

Council Service: Building Maintenance

Delivery Program Objective: 2.3.3 Develop and implement management of operational and maintenance programs for open space, recreational and community facilities

· Scheduled and reactive maintenance programs of all Council-owned buildings including office furniture replacement is ongoing

· Building rectification works are ongoing in line with the Council Building Asset Management Plan

Council Service: Recreation and Buildings

Delivery Program Objective: 2.3.4 Plan, investigate, design and construct open spaces, recreational and community facilities

· Port Macquarie Coastal Walk upgrade has construction works on the Charlie Uptin commenced. Planning works for the Doctors and Kenny Walk segments has commenced and is ongoing.

· Flynns Beach upgrade to the sea wall has construction ongoing and is scheduled for completion in November 2019

· Hastings Regional Sporting Complex construction has design works progressing, with construction planning and phasing under development

· Pre-construction for Town Centre Master Plan improvements for the foreshore walkway priority projects are ongoing

· Port Macquarie Pool has had extensive community consultation undertaken to determine the preferred site location, with Macquarie Park confirmed, designs have now commenced and are progressing

· Lake Cathie Foreshore Reserve - Skatepark construction is complete

· New park facilities at Red Ochre and Ruins Way have planning commenced

· Stuart Park - Regional Sporting Precinct works progressing with the Off Leash Dog Park and playground complete

Council Service: Library

Delivery Program Objective: 2.3.5 Plan and deliver innovative Library Services which cater for new technology and growing population

· The annual library events program has delivered a major author talk and live streaming of Sydney Symphony Orchestra

· Library membership increased from 34,206 to 35,172 as at September 2019

· The Library Strategic Plan was adopted by Council

· The new Library webpage launched in August 2019

Council Service: Community Engagement

Delivery Program Objective: 2.3.6 Support a range of inclusive community activities and programs

· A wide range of community activities and events have been held across the local government area some of which have included:

o NAIDOC Week

o Mayors Sporting Fund Bowls Day and

o Artwalk

Delivery Program Objective: 2.4.1 Work with the community to identify and address community needs, to inform Council processes, services and projects

· A range of actions were implemented as part of the Volunteer Program. Support provided to Graffiti Blasters and an increase of 45 new volunteer registrations for the environmental group Coastal Warriors

Council Service: Cultural Development

Delivery Program Objective: 2.5.1 Support cultural activities within the community

· Implementation of actions from the Cultural Plan is ongoing

· A range of performing arts events were presented at the Glasshouse some of which included: Melbourne International Comedy Festival, The Beauty of 8 and a Gala Night at the Ballet

· A range of visual arts events were presented at the Glasshouse some of which include: John Mawurndjul, Wendy Sharpe and Bernard Ollis Obsessed

COMMUNITY THEME: YOUR BUSINESS AND INDUSTRY

Operational Plan summary of performance measures
2019 - 2020	Total No.	On target	Achieved	Behind	Overall %
1Q - July – Sept 2019	25	24	0	1	96%
2Q - Oct – Dec 2019
3Q - Jan – Mar 2020
4Q - Apr – Jun 2020

What are we trying to achieve

The Port Macquarie-Hastings region is a successful place that has vibrant, diversified and resilient regional economy for people to live, learn, work, play and invest

What the result will be

· A strong economy that fosters a culture supportive of business and ensures economic development of the region

· Townships, villages and business precincts that are vibrant commercial, tourism, recreational and/or community hubs

· A region that attracts investment

· Partnerships that maximise economic return and create an efficient and effective business environment

How we know we are progressing

· There is growth and development of new industries and business

· Tourism and major events contribute to increased economic activity

· There are greater opportunities for investment across the region

· Council is recognised for its role in fostering partnerships that contribute to business and industry growth

We know we are progressing on delivering outcomes to the community against the Delivery Program objectives as achievement highlights can be seen below against specific council service

Highlights by Council Service and Delivery Program Objective

Council Service: Economic Development

Delivery Program Objective: 3.1.1 Assist the growth of local business and industry, ensuring this is a central consideration of Council activities

· Implementation of the Economic Development Strategy is ongoing and includes

o Extension of ‘The Hub’ co-working centre trial to 2021 following significant growth of user numbers

o Advocacy via submission to the Commonwealth Select Committee into Jobs for the Future Regional Areas

o Implementation of key opportunities identified in the Port Macquarie-Hastings Skills Audit

· Business confidence survey undertaken in August 2019 with over 400 responses, with results to be released in October 2019

Delivery Program Objective: 3.1.3 Implement Major Events Strategy

· Implementation of actions relating to 'Major Events' is ongoing, with support provided to seven major events for the first quarter. The events resulted in a combined economic impact of over $1.2 million for the community

Delivery Program Objective: 3.1.4 Implement the Destination Management Plan

· Implementation of actions from the Destination Management Plan is ongoing

· Visits to the destination website for the first quarter show an increase of 11.62% year on year. This represents an increase in users from 119,437 for 2018-2019 FY to 133,321 for 2019-2020 FY.

Delivery Program Objective: 3.2.1 Support vibrant commercial, tourism, recreational and or community hubs across the region

· Supporting town and village initiatives that will provide activation and economic return, some actions have included:

o Outdoor dining initiatives in town and villages continuing

o Footpath A-frame sign fee waiver for towns and villages is continuing with a policy review planned for the coming months

Council Service: Airport

Delivery Program Objective: 3.3.1 Develop, manage and maintain Port Macquarie Airport as a key component of the regional transport network and continue to grow the airport’s contribution to the regional economy

· Port Macquarie Airport Terminal upgrade Stage 2 construction commenced and on target for completion by end of November 2019

· Port Macquarie Airport Parallel Taxiway - Stage 1 and General Aviation pavement renewal has concept design finalised. The environmental impact assessment is underway

· Passenger numbers are up 4.2% compared to the same period for the year to date

· Biodiversity certification agreement is progressing with implementation post approval

Council Service: Economic Development

Delivery Program Objective: 3.3.2 Promote investment, education and lifestyle opportunities

· Promoting local growth and opportunities within and outside the region has included undertaking actions such as:

o A new Investment Prospectus to be published in Quarter 4 of 2019

o Release of two videos from the live, work, invest video campaign have been completed with significant reach into key target markets

Delivery Program Objective: 3.4.1 Foster partnerships with higher education institutions through research and development, innovation and local skills development

· Port Macquarie Health and Education Precinct Master Plan endorsed September 2019.

· Engagement undertaken with the local Education and Skills Forum

Delivery Program Objective: 3.4.2 Support local business networks

· The Business Hub is meeting regularly with strong attendance and is actively involved with “The Hub’ business and co-working space

· Engagement with local Chambers of Commerce and other business/industry groups is ongoing

Delivery Program Objective: 3.4.3 Encourage innovation that will support our growth as a regional city including smart community technology

· Support for the detail design of CSU Innovation Hub as part of Stage 2B campus development

· Free Council Wi-Fi installation has been provided at the Port Macquarie Airport Terminal

COMMUNITY THEME: NATURAL AND BUILT ENVIRONMENT

Operational Plan summary of performance measures
2019 - 2020	Total No.	On target	Achieved	Behind	Overall %
1Q - July – Sept 2019	178	141	6	31	83%
2Q - Oct – Dec 2019
3Q - Jan – Mar 2020
4Q - Apr – Jun 2020

What are we trying to achieve

A connected, sustainable, accessible community and environment that is protected now, and into the future.

What the result will be

· Effective management and maintenance of essential water, waste and sewer infrastructure

· A community that is prepared for natural events and climate change

· Sustainable and environmentally sensitive development outcomes that consider the impact to the natural environment

· Accessible transport network for our communities

· Infrastructure provision and maintenance that meets community expectations and needs

· Well planned communities that are linked to encourage and manage growth

· Accessible and protected waterways, foreshores, beaches and bushlands

· An environment that is protected and conserved for future generations

· Renewable energy options that are understood and accessible by the community

How we know we are progressing

· We have water, waste, and sewer systems that are efficient, maintained and environmentally compliant

· Consideration, is given to climate change impacts and potential mitigation

· Programs are implemented to support, the condition of the natural environment

· The road and transport network is well planned and maintained

· The transport network, recreational facilities, and open spaces, reflect community priorities

· Coordinated urban development is, well planned to meet projected population growth

· We successfully preserve local flora and fauna

· Renewable energy options are promoted

We know we are progressing on delivering outcomes to the community against the Delivery Program objectives as achievement highlights can be seen below against specific council services

Highlights by Council Service and Delivery Program Objective

Council Service: Water Supply

Delivery Program Objective: 4.1.1 Plan, investigate, design and construct water supply assets ensuring health, safety, environmental protection and security of supply for the future growth of the region

· Construction of the Sancrox Reservoir to Area 13 Thrumster truck main has the design phase complete with construction to continue into 2020-2021

· Area 14 reclaimed trunkmain outlet construction at Bonny Hills is ongoing

· Construction of the Thrumster reclaimed water supply rising main to the reservoir has designs nearing completion

· Construction of the Beechwood Rosewood Reservoir is complete

Delivery Program Objective: 4.1.2 Develop and implement annual maintenance and preventative works program for water supply assets

· Water asset replacement and renewal program is ongoing

· Annual chemical dosing system upgrades are ongoing

Council Service: Sewerage

Delivery Program Objective: 4.1.3 Plan, investigate, design and construct sewerage assets ensuring health, safety, environmental protection and the future growth of the region

· Construction of the Port Macquarie Sewer rising main (PMSP71) has the detailed design phase complete and construction planning underway

· Provision of centralised sewerage systems for Comboyne, Long Flat and Telegraph Point as part of the small town sewerage program has construction commenced in October 2018 and is ongoing. Telegraph Point is scheduled for completion in March 2020, Comboyne is scheduled for completion in April 2020 and Long Flat is scheduled for completion in July 2020

· Lakewood/Kew (Area 15) sewerage upgrades to cater for future development is progressing. The project is delivered in partnership with NSW public works and design and investigation phase is programmed throughout 2019-2020

· Construction of the Area 14 reclaimed Inlet trunk main (DN250), Bonny Hills has designs nearing completion and will continue throughout 2019-2020

Delivery Program Objective: 4.1.4 Develop and implement annual maintenance and preventative works program for sewerage assets

· Programmed replacement of sewerage assets including sewer pumps and electrical switchboards is ongoing

· Programmed replacement of Sewer Treatment Plant electrical and mechanical assets including instruments is ongoing

· Sewer assets replacement and maintenance program for odour control installations, sewer rehabilitation renewal and realigning works is ongoing

Council Service: Stormwater and Drainage

Delivery Program Objective: 4.1.5 Work towards planning, investigation, design, construction of stormwater assets

· Development of concept designs for stormwater remediation works at Panorama Drive Bonny Hills are complete

· Stormwater remediation works at Calwalla Cres are complete, with works at Dilladerry Cres ongoing and awaiting easement acquisition

Delivery Program Objective: 4.1.6 Develop and implement annual maintenance and renewal programs for stormwater assets

· Major canal maintenance and dredging at Settlement Shore canals has works scheduled to commence November 2019 following community consultation

· The Stormwater Renewal Program is ongoing with actions including:

o Commencing the planning phase for Stormwater Relining works at Fairmont Gardens, Wauchope, Longworth Road Dunbogan, 230 Hastings River Drive and 122 Hibbard Drive Port Macquarie

· Stormwater flooding mitigation measures at Rodley Street Bonny Hills has Construction commenced in May 2019 and targeting completion in second quarter of 2019-2020

· Detailed designs of stormwater remediation measures identified in the Westport Stormwater Management Plan has stormwater catchment analysis and detailed design progressing

Service: Waste Management

Delivery Program Objective: 4.1.7 Develop and implement effective waste management strategies

· Kingfisher Waste Depot expansion works scheduled to commence in second quarter of 2019-2020

· The Waste Education Program for primary and pre-schools is currently underway

· Ensuring effective recycling and recovery of domestic and organic waste through the Material Recovery facility is ongoing

· Kingfisher Waste Transfer Station - Gas Investigation Risk Analysis has final gas investigation study issued to the EPA for comment

· Project planning commenced to deliver “Better Waste and Recycling’ initiatives

· Cairncross Waste Depot facility upgrade and expansion has draft consent conditions issued and is currently under review

Council Service: Natural Resource Management

Delivery Program Objective: 4.2.1 Develop and implement Coastal, Estuary, Floodplain, and Bushfire Management Plans

· Bushfire risk mitigation works on Council land are ongoing in accordance with the Bushfire Risk Management Plan with inspections underway

· 28 Asset Protection Zones inspected during the first quarter in Laurieton, Lake Cathie, Bonny Hills and Port Macquarie

· The Draft North Brother Local Catchment Flood Study was placed on public exhibition in May/June 2019 with a report presented and adopted at the July 2019 Ordinary Council Meeting.

Council Service: Development Assessment

Delivery Program Objective: 4.3.1 Undertake transparent and efficient development assessment in accordance with relevant legislation

· Development Assessment, Building Certification and Subdivision Certification activities were completed efficiently and in accordance with legislation

o Over 200 Development Applications with an average processing time of 42 days

o Over 39 Development Application modifications processes with an average processing time of 49 days

o Over 110 Building Construction Certificates with an average processing time of 5 days, and

o Over 23 Complying Development Certificates with an average processing time of 9 days

· No successful legal appeals were recorded in relation to processing errors for development applications during the first quarter

Council Service: Roads, Bridges and Transports

Delivery Program Objective: 4.4.1 Plan, investigate, design and construct transport assets which address pedestrians, cyclist and vehicular needs to cater for the future growth of the region

· Construction of new footpath being undertaken at Hill Street Port Macquarie

· Construction of improved pedestrian amenity for Wauchope Main Street – Stage 1 is nearing completion

· Substructure rehabilitation works on the Dunbogan Bridge - Reid Street - is progressing on schedule and targeting completion in early 2020

· Kindee Bridge structural repairs and bridge replacement optioneering has initial repairs and detailed investigations complete. Stage 2 works planned to commence in the second quarter of 2019-2020

· Diamond Head Road/The Boulevard Flood Access Stage 1A is expected to have construction commenced in January 2020

· Bold Street Pedestrian Crossing Laurieton currently has revised designs being developed for the new crossing location

· Kew Main Street upgrade is currently on the design phase with community consolation being undertaken on the initial concept design

· The 2020-2021 Road Rehabilitation and Reseal Programme is currently in the planning phase, proposed projects include:

o Planning Phase (Road Resurfacing and Rehabilitation):

o Ocean Drive, Laurieton (Kew Road to Henry Kendall)

o Widderson Street, Port Macquarie (Oxley Hwy to Hastings River Drive)

· The 2020-2021 Road Reseal Programme is currently in the planning phase, proposed projects include:

o Lighthouse Beach Local Roads Port Macquarie;

o Matthew Flinders Drive Port Macquarie

o Long Flat Local Roads, Long Flat, Kindee, Forbes River

o Bago Road, Herons Creek (Milligans Road to Pacific Hwy) and

o Captain Cook Bicentennial Drive, Laurieton

· John Oxley Drive upgrade has detailed design and environmental approvals progressing

· Ocean Drive duplication - Matthew Flinders Drive to Greenmeadows has the business case under review by Transport for NSW and Roads and Maritime Services undertaking a construction feasibility assessment

· Planning for new bus shelters across the region as per the Community Passenger Transport Infrastructure Grant Scheme is currently in the planning phase

· Beach to Beach shared path at Camden Haven has construction of Stage D9 pathway practically complete. Construction of Stage D1 is scheduled to commence in early 2020 as part of the Diamond Head Road project

· Detailed designs for the Gordon/Horton Street intersection upgrade are underway

· Lighthouse Road Tourism Connectivity Project - Lighthouse Road east upgrades - Matthew Flinders Drive to The Lighthouse is complete

· Slipping of Settlement Point Ferry is scheduled for works to be undertaken in October and November 2019

· Preconstruction planning are underway for Bago Road Rehabilitation (Milligans Road to Blue Water Cres) and The Ruins Way

· Project design planning has commenced for Pembroke Road - Stoney Creek Bridge and Scrubby Creek Bridge

· The planning proposal for provisions for “gateway sites” at the intersection of the Pacific and Oxley Hwy was on public exhibition during April and May 2019. A report on the outcomes was presented to the June 2019 Ordinary Council Meeting.

· Construction of pedestrian refuges at Hayward Street and Gordon and Hollingworth Street has project planning complete

· Road safety improvements at Pembrooke Road and Rawdon Island has project planning commenced

Delivery Program Objective: 4.4.3 Develop and implement traffic and road safety programs

· Implementation of the Road Safety Action Plan included delivery of two projects:

o Speed on Country Roads

o Shared Path Education Campaign

· Installation and maintenance of street lights including upgrade investigations, designs and delivery are being undertaken in accordance with the program

Council Service: Strategic Land Use Planning

Delivery Program Objective: 4.5.1 Carry out strategic planning to manage population growth and provide for co-ordinated urban development

· Local Environmental Plan (LEP) and Development Control Plan (DCP) amendments for the proposed Yippin Creek urban release area to the west of Wauchope has Bushfire Hazard Assessment Report completed by consultants. Ecological assessment and stormwater/flooding studies currently underway

· Planning for the Port Macquarie Health and Education Precinct had the Master Plan adopted at the September 2019 Ordinary Council Meeting with further planning and investigations to commence

· The review of the Port Macquarie-Hastings Development Control Plan has project planning commenced for Stage 1 house-keeping review of DCP 2013

Delivery Program Objective: 4.5.2 Plan for infrastructure that supports population growth

· A review of the draft works program for the Major Road Contributions Plan has planning commenced to produce interim plans

Council Service: Environmental Services

Delivery Program Objective: 4.6.1 Develop and implement a range of programs for the environmental management of lands within the local government area

· Implementation of the Weed Management Program has included delivery of outcomes such as:

o Over 180km of roadside weeds have been manage during the quarter

o Over 44ha of land managed for invasive weeds

o Over 200ha of Council assets managed for invasive weeds

· Management of riparian land for aquatic weed invasion is ongoing

· Ongoing education provided to residents, industry and community groups on Council’s tree management requirements within the Port Macquarie-Hastings 2013 tree management Development Control Plan

· Over 353 customer requests relating to tree matters have been handled during the first quarter, relating to public/private matters and illegal tree works

· Preparation of the comprehensive Koala Plan of Management for coastal areas is ongoing with a report expected to Council in December 2019

Council Service: Building Maintenance and Asset Management

Delivery Program Objective: 4.7.1 Promote renewable energy outcomes within Council

· LED lighting upgrades for Council buildings is ongoing

· Wauchope, Laurieton and Kendall Pools were identified as existing Council facilities that were suitable to install solar energy systems. Preliminary works completed, with installation expected in March 2020

· Implementation of the Long Term Energy Strategy actions has the six monthly update report scheduled to be presented to the November 2019 Ordinary Council Meetings

Council Service: Water Supply

Delivery Program Objective: 4.8.1 Ensure all Council operations comply with environmental standards and regulations

· Operating and maintaining water treatment plants in accordance with adopted maintenance programs has been undertaken

· Operating the water supply network to ensure public health and safety has been undertaken

· Operating and maintaining storage dams in accordance within the set guidelines has been undertaken

Council Service: Sewerage

Delivery Program Objective: 4.8.1 Ensure all Council operations comply with environmental standards and regulations

· Operating and maintaining sewerage treatment plants in accordance with environmental licences, adopted maintenance programs and safety requirements was undertaken

· Operating the sewerage network to ensure public health and safety has been undertaken with all defects identified through waste trade inspections undertaken and complaints/requests dealt with in line with service standards

Council Service: Environmental Services

Delivery Program Objective: 4.8.2 Increase community awareness and enable access to the natural environment

· Delivering bushfire preparedness and planning programs to the community has been undertaken with all community enquires responded to within the 7 days service standard

Council Service: Environmental Services

Delivery Program Objective: 4.8.3 Promote Biodiversity Programs

· The Biodiversity Strategy has implementations of actions underway and progressing as planned

Options

It is a statutory requirement under Integrated Planning and Reporting legislation to report on what has been delivered against the Delivery Program on a six monthly basis.

Community Engagement & Internal Consultation

· Planning and Reporting Officer

· Integrated Planning and Reporting Development Officer

· Group Manager Organisational Performance

· The General Manager, Directors, Group Managers and staff reporting against the annual 2019-2020 Operational Plan, provides the basis for the Delivery Program - Six Monthly Progress Report

Planning & Policy Implications

This report is aligned with legislative obligations under the Local Government Act and Regulation and the requirements of the NSW Integrated Planning and Reporting Framework

Financial & Economic Implications

There are no direct financial implications from this report. Quarterly budget review statements (QBRS) align with the reporting period referenced in this report.

Attachments

1 View. Attachment A - 2017-2021 Delivery Program and 2018-2019 Operational Plan Quarterly Exception Report as at 30 September 2019

2 View. Attachment B - 2017-2021 Delivery Program and 2019-2020 Operational Plan Quarterly Progess Report as at 30 September 2019

AGENDA Ordinary Council

20/11/2019

Item: 10.15

Subject: Annual Financial Statements for the Year Ended 30 June 2019

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.

RECOMMENDATION

That Council adopt the annual financial statements for the year ended 30 June 2019, as submitted, together with the auditor’s report.

Executive Summary

The Local Government Act, 1993 requires that Council hold a public meeting for the purpose of considering the annual financial statements, together with the auditor’s report. These are now presented for Council’s consideration.

A suite of financial ratios measures Council’s financial position and allows for comparisons of results between financial years. These are explained in greater detail in the body of the report.

The Operating Performance Ratio is arguably the most important of these ratios. It indicates whether recurrent revenue is covering operating expenses. Council met this ratio for the first time in a decade during the 2014/2015 financial year and has continued to meet and exceed the ratio benchmark of > 0% since that time on a consolidated basis.

Council is continuing to meet benchmark across other key ratios on a consolidated basis. This reflects the Council’s strong cash liquidity and its ability to pay debts as they fall due.

Longer term ratios that relate to Council’s infrastructure reflect the vast infrastructure network that Council maintains. There has been a slight deterioration in 2018-2019 of the Building and Infrastructure Renewals Ratio and the Infrastructure Backlog Ratio, however the Asset Maintenance Ratio has now reached benchmark. It should be noted however, that these ratios are affected by the types and quantum of works programs undertaken during the year.

There has been a lot of work undertaken over the past several years that has contributed to these results including but not limited to improved asset management, procurement strategy implementation, service reviews and improved budget processes.

A continued focus will need to be applied to ensure that Council can maintain the benchmarks that it currently meets, and improve against longer term asset related benchmarks into the future.

Discussion

Background

At a meeting of Council on 21 August 2019 it was resolved:

Council resolutions 1 and 2 have now been implemented.

Section 418 to 420 of the Local Government Act, 1993 provides that Council must give public notice of its intention to consider the annual financial statements and the auditor’s report. This notification has been given by way of advertisements placed in local newspapers including Camden Haven Courier, Hastings Gazette and Port Macquarie News.

Section 420 of the Act allows any person to make a written submission on the content of the annual financial statements or the auditor’s report. At the time of writing this report, no submissions had been received. If any submissions are received, they will be distributed prior to the meeting.

The purpose of this report is to present to Council the 2018-2019 audited annual financial statements, together with the auditor’s report. A copy of the 2018-2019 annual financial statements are attached to this report for information (Attachment 1).

Results for the year

The Income Statement discloses that Council’s activities for the 2018-2019 financial year resulted in a net operating surplus of $71.2m, on a consolidated basis. This is an improvement of $11.9m from the $59.3m surplus in the previous year. The result can be accredited to a number of variations including the following:

1. An increase in capital grants and contributions of $10.9m. This is primarily due to an increase of $6.1m in developer provided assets, offset by a reduction of $2.9m in s7.11 and s64 contributions (developer contributions). In addition, the receipt of capital grants has increased by $7.8m which is primarily due to the airport terminal upgrade ($5.3m) and receipts from the Stronger Country Communities Fund. Grant funding is often one of the main causes of year-on-year variations as it is currently recognised in the income statement when it is received and will often not match the timing of the expenditure of those funds.

2. A reduction in operational grants and contributions of $1.6m due to the timing of the receipts of the Roads to Recovery grant ($1.2m) and a reduction in waste management grants ($186k).

3. An increase in other revenues of $841k which is due to increased Glasshouse fees ($262k), increased fine revenue ($94k), waste management revenues ($181k) and the receipt of energy saving certificates revenue ($168k).

4. An increase in employee benefits and on-costs of $2.8m, due primarily to an award increase of 2.5%, which is outside of Council’s control. In addition, the employee leave entitlements expense increased by $1.7m due to lower discount rates resulting in an increased provision calculation. Workers compensation has also increased by $237k.

5. An increase in borrowing costs of $375k which is due to an increase in the amortisation of the provision for the Cairncross tip remediation.

6. Materials and contracts have reduced by $1.1m from the 2017-2018 financial year. This is made up of various items including $1.5m for the LED street lighting upgrade that was undertaken in 2017-2018.

7. Depreciation has increased by $4.0m in 2018-2019 which is due in part to the large amount of contributed assets council has received from developers in the recent years, in addition to the impact of the 2017-2018 buildings revaluation.

Statement of Financial Position

Council’s Statement of Financial Position is disclosed in accordance with current accounting standards and reporting requirements of the Local Government Act and its Regulations.

Council’s net asset position has increased by $119.0m from the 2017-2018 financial year. This is due to a number of things including:

· An increase in infrastructure, property, plant and equipment assets of $82.2m following indexation of assets and current year purchases. No full revaluations were completed in 2018-2019, however indexations were applied to assets classes including transport, stormwater, other structures, water, sewerage and open space assets.

· An increase in cash and investments of $23.5m due to revenue received that has not yet been expended on capital works. These monies are held in reserve which ensures that they are set aside for specific future projects / purposes as determined by Council or mandated by external legislation.

· A reduction of $11.1m in borrowings due to loan repayments made during the year.

Performance Measurement

Council is required to include the performance measurement ratios in its Annual Financial Statements.

Below are Council’s ratio results for the last four years for the consolidated Council position:

1. Operating Performance - Consolidated

Benchmark

2018-2019

2017-2018

2016-2017

2015-2016

5.12%

4.66%

9.93%

7.44%

Greater than 0%

Commentary:

This ratio measures Council’s achievement in containing operating expenditure within operating revenue. As it focuses on operating performance, capital grants and contributions and gain/loss on disposal of assets are excluded. The items affecting this ratio are discussed in the commentary for the income statement above.

The Operating Performance Ratio has improved slightly over the ratio for 2017-2018 and on a consolidated basis is still well above benchmark. The ratios for each fund are shown below. The general fund ratio is below benchmark. A number of factors have contributed to this such as non-recurrent expenditures or cyclical expenditure items. Although a negative operating result is manageable in the short-term, the importance of ensuring Council’s ongoing financial sustainability is recognized and as such, Council will continue to focus on improving the general fund operating result.

Fund	General	Water	Sewer
Ratio	(4.46%)	30.11%	12.41%

2. Unrestricted Current Ratio

Benchmark

2018-2019

2017-2018

2016-2017

2015-2016

1.74:1

2.05:1

2.02:1

2.27:1

Greater than 1.5

Commentary:

This ratio is designed to represent a Council’s ability to meet short term obligations as they fall due. If below benchmark it may indicate that Council needs to raise additional funds or liquidate assets to have cash available to meet debts as they fall due.

Council’s Unrestricted Current Ratio has reduced from 2017-2018 but is still above the benchmark of 1.5:1. This ratio is strongly affected by the terms of Council’s investments and has reduced due to Council focusing a number of investments in the medium-longer term ranges, which are therefore classified as non-current assets and do not form part of this ratio. It should be noted that as with all performance ratios, this figure represents a snapshot in time, which is not necessarily representative of the full position.

3. Own Source Operating Revenue

Benchmark

2018-2019

2017-2018

2016-2017

2015-2016

65.42%

66.14%

56.19%

63.50%

Greater than 60%

Commentary:

This ratio measures fiscal flexibility which is the degree of reliance on external funding sources such as grants and contributions. A council’s fiscal flexibility improves the higher the level of its own source revenue.

Council’s own source revenue ratio has reduced slightly since 2017-2018 due to the large amount of developer provided assets that were received in 2018-2019. It should be noted that additional grant and contribution funding has a negative effect on this ratio.

4. Debt Service Cover

Benchmark

2018-2019

2017-2018

2016-2017

2015-2016

4.32

3.98

4.59

3.27

Greater than 2

Commentary:

This ratio measures the availability of operating cash to service debt including interest, principal and lease payments. Council’s result has improved from last year due to a higher operating result, making Council well above the benchmark of greater than 2.

5. Rates and Annual Charges Outstanding percentage

Benchmark

2018-2019

2017-2018

2016-2017

2015-2016

5.01%

4.88%

4.85%

5.34%

Less than 10% for rural & regional councils

Commentary:

The purpose of this ratio is to assess the impact of uncollected rates and annual charges on liquidity and the adequacy of debt recovery efforts. The consolidated ratio has deteriorated slightly over the 2017-2018 ratio, however Council is still well within the benchmark for regional councils.

Council’s general fund ratio (including waste management) for 2018-2019 was 4.38%, sewer fund was 3.61% with the water fund recording the highest ratio at 13.41% (outside the benchmark). This is due to the fact that water accounts are generated constantly and may not be due for payment until the new financial year. Consistent with prescribed methodology, these outstanding amounts must be included in the ratio as they are outstanding at year end. Council will therefore compare unfavourably on a consolidated basis to councils with no water authority function.

Recovery action is constantly underway to ensure that Council’s collection rates are as high as possible. Vigilance in this area is also of benefit to the community to assist ratepayers in not accumulating large debts.

6. Cash Expense Cover Ratio

Benchmark

2018-2019

2017-2018

2016-2017

2015-2016

28.42

26.14

25.31

21.49

Greater than 3 months

Commentary:

This liquidity ratio indicates the number of months that Council can continue paying for its immediate expenses without additional cash inflow. The ratio includes all term deposits and with the majority of Council’s investments being in term deposits, this ratio should be well above benchmark at all times. It should be noted however, that even though term deposits are included in this ratio, a minimum of 31 days’ notice has to be given to the banks before these deposits can be redeemed.

7. Building and Infrastructure Renewal Ratio

Benchmark

2018-2019

2017-2018

2016-2017

2015-2016

70.22%

87.64%

34.62%

37.82%

Greater than 100%

Commentary:

This ratio is a longer term indicator of the condition and cost to maintain public infrastructure assets. It is measured by the amount expended on asset renewals for buildings and infrastructure over the depreciation expense of those assets. The definition of renewals used for the ratio is “replacement of existing assets with equivalent capacity or performance as opposed to the acquisition of new assets”. Council often upgrades the capacity of an asset as part of the renewal process. Capacity includes widening a road or bridge, or increasing a load capacity on a bridge. As this capacity work is regarded as an improvement and not renewable these costs are not included within this ratio calculation. Due to the definition of a renewal this ratio may vary significantly up and down over the years. Last year’s ratio was positively impacted by works undertaken on Stingray Creek Bridge.

Council is continuing on its journey of improving its asset management planning processes in line with the state government’s Integrated Planning & Reporting Framework. Asset management plans are designed to provide a strategic framework for assessing and addressing asset management issues (including appropriate renewals and maintenance) in future years. Council needs to continue to make the upgrade of all asset management plans a priority. Like all Councils, the ability to meet acceptable levels under this benchmark will be limited to the available funding.

This result indicates that in order to improve this ratio, additional funding for the renewal of assets would be required over the construction of new assets.

8. Infrastructure Backlog Ratio

Benchmark

2018-2019

2017-2018

2016-2017

2015-2016

6.66%

5.63%

5.34%

6.89%

Less than 2%

Commentary:

This ratio shows the proportion of infrastructure backlog against the total value of Council’s infrastructure. It is calculated by taking the estimated cost to bring the assets to satisfactory standard over the total value of Infrastructure, building and other structures assets.

There has been slight a deterioration in this ratio from 2017-2018. To ensure further improvement to this ratio council needs to align future works programs to the infrastructure backlog data to ensure that priority is given to projects that are included in the infrastructure backlog figures.

9. Asset Maintenance Ratio

Benchmark

2018-2019

2017-2018

2016-2017

2015-2016

1.00

0.91

0.88

0.87

Greater than 100%

Commentary:

This ratio compares the actual versus required annual asset maintenance. A ratio of above 1.0 indicates that the Council is investing enough funds within the year to stop the infrastructure backlog from increasing.

This ratio has improved significantly from last financial year due to the additional maintenance funding allocations made for bridges and stormwater.

Options

Not applicable.

Community Engagement & Internal Consultation

Extensive consultation has taken place with Council’s finance section and with Council’s external auditors. The public have also been notified by way of advertisement.

Planning & Policy Implications

These Annual Financial Statements form Part C of the Council’s Annual Report, legislated under the Integrated Planning and Reporting Framework.

Financial & Economic Implications

As outlined in the body of this report.

Attachments

1 View. 2018- 2019 Financial Statements

AGENDA Ordinary Council

20/11/2019

Item: 11.04

Subject: Local Strategic Planning Statement

Presented by: Strategy and Growth, Jeffery Sharp

Alignment with Delivery Program

1.3.1 Provide effective leadership and equity.

Commenced in

RECOMMENDATION

That Council:

1. Endorse the recommended approach for development of the first Local Strategic Planning Statement for the Port Macquarie-Hastings Local Government Area as detailed in this report.

2. Request the General Manager write to the Minister for Planning and Public Spaces, seeking a 12 month extension to the statutory timeline for making of a Local Strategic Planning Statement by Port Macquarie-Hastings Council.

Executive Summary

As a result of amendments made in March 2018 to the Environmental Planning and Assessment (EP&A) Act 1979, the NSW planning system has shifted its focus to up- front strategic planning. This new structure establishes line of-sight alignment between key planning priorities identified at the State and regional scale with finer-grained planning at the local level.

As part of the new structure, Councils are required to prepare a Local Strategic Planning Statement (LSPS) before 1 July 2020.

The statements will give effect to regional plans and inform local statutory plans and development controls. The LSPS will act as a unifying document, drawing together and summarising planning priorities identified through State, regional and local strategic work.

Council has recently received correspondence from NSW Planning Industry and Environment (DPIE) dated 28 October 2019 (Attachment 1) which again specifies the need for Council submit a completed timeline setting out key milestones by 11 November 2019.

In addition, the Department in association with the NSW Office of Local Government, has offered support and training to North Coast councils to assist in the preparation of this important strategic planning document. However, there is still a lack of clarity around the process and inconsistencies in rolling out information to regional councils.

While Council staff support the need for a LSPS and have participated in recent training sessions offered at Crescent Head and Kempsey, and note that a number of relevant agency sectors have issued requirements, Council is now faced with a limited timeline in which to review and consult with agencies in relation to their recommendations, as well as engage with our community consistent with our 2019-20 In Focus commitments to “put customers at the centre of everything we do”.

This report recommends that Council write to the Minister for Planning and Public Spaces, seeking a 12-month extension of the deadline to deliver the LSPS.

An extension would allow staff to comprehensively engage with the community, to deliver a considered Community Strategic Plan, together with an evidence-based LSPS that is in line with the regional vision, goals and actionable priorities of the North Coast Regional 2036, relevant State Strategies and Sector Agency recommendations. An extension would also provide for improved alignment between the planned review and update of our Community Strategic Plan and the on-going roll out of community plans in 2020.

Discussion

In March 2018, amendments to the Environmental Planning and Assessment Act 1979 (the EP&A Act) introduced a new requirement for local councils to prepare and make an LSPS.

An LSPS must set out:

· the 20-year vision for land use in the local area;

· the shared community values that are to be maintained and enhanced;

· how development and change will be managed into the future; and

· the special values and characteristics which contribute to local identity.

Additionally, the statement will shape how the planning controls in our Local Environmental Plan (LEP) evolve over time to meet the community's aspirations and needs in the context of regional priorities (the LEP being the legal instrument to deliver the LSPS). Importantly, the LSPS will act as a mechanism to introduce change in the LGA and integrate planning across the EP&A Act and the Local Government Act (LG Act).

In the context of the Port Macquarie-Hastings LGA, the LSPS will also:

· provide Council and the community with an opportunity to identify and protect the existing and future character of local communities within the Port Macquarie-Hastings region;

· identify opportunities for housing choice to meet the needs of our diverse community;

· maximise our community’s health, prosperity and wellbeing through the creation of active and vibrant community facilities and places;

· facilitate safe and convenient travel within neighbourhoods through an accessible and integrated movement network;

· promote good urban design;

· recognise the value of and protect our unique natural and cultural assets;

· recognise/acknowledge the value pf our agricultural land to our economy;

· set the strategic priorities for other Council planning documents across all of Council’s functions under the EP&A Act and LG Act.

It is Council’s objective to comprehensively engage with our community, to deliver a considered Community Strategic Plan, together with an evidence-based LSPS that is in line with the regional vision, goals and actionable priorities of the North Coast Regional 2036, relevant State Strategies and Sector Agency recommendations.

Council is about to embark on a comprehensive engagement program to inform the development of the Community Strategic Plan (CSP) - “Think 2050” which will commence in late January through to May 2020. There is a unique and clear opportunity to consolidate the engagement program for the LSPS with that of the CSP. There are benefits to both the community and Council in this approach:

· we do not create confusion within the community by engaging on what are two highly interlinked documents which address similar (but distinct) issues;

· we do not create a situation of engagement fatigue with our community;

· we can be more effective and efficient with our engagement activity (maximising our resources for the least cost across the 2 projects); and

· we ensure that our LSPS is well-informed by the community and is consistent with our Community Strategic Plan.

Most importantly Council demonstrates to our community our commitment to their genuine involvement in the development of a key document that will drive the delivery of their aspirations and agreed priorities over the next two decades.

In taking this approach, it will not be possible for Council to achieve the 1 July 2020 deadline to make an LSPS which achieves our objective (as outlined above) and would stand up to public scrutiny.

In addition to the above, the following factors also make the achievement of 1 July 2020 deadline unachievable.

· Council is still receiving critical State agency recommendations, guidance and advice for regional LSPS preparation, which needs to be incorporated into our community engagement approach and LSPS preparation. We are now faced with a limited timeline in which to review and consult with these agency sectors in relation to their recommendations for preparation of our LSPS;

· Although there has been training and information provided by the Department of Planning, Industry and Environment for commencing this important strategic planning, Council has, until recently, been consistently advised that Port Macquarie-Hastings Urban Growth Management (UGMS) 2036 would substantially satisfy the requirements for an LSPS. We now understand that this approach is not sufficient, and it is clear that there is a considerable body of strategic work to be completed in order to address our regional partnership responsibilities under the North Coast Regional Plan 2036, to inform the priorities for our LSPS;

· Important work not yet commenced but considered critical to the development of the LSPS includes development of a Local Housing Strategy (recently commissioned); Rural Lands Strategy to enhance and protect our agricultural land, grow agribusiness, and sustainably manage our natural resources; Development of a local Heritage Study (programmed to commence in 2020) and development of a Destination Management Plan (due for completion early 2020).

· The endorsement process by the Department also remains unclear and further guidance from DPI& E is being requested.

The proposed milestones and timeframe using this approach are outlined below:

Activity/Milestone	Dates
Community Engagement for CSP and LSPS	Dec 2019 - end May 2020
Develop Draft LSPS	June 2020 - September 2020
Review draft LSPS with new Council body	October 2020
Prepare Council report to recommend LSPS to go on Public Exhibition	November 2020
LSPS on Public Exhibition with draft CSP	November 2020 - March 2021
Review and amend LSPS	April - May 2021
Prepare Council report to recommend LSPS to be endorsed	June 2021
LSPS published on Planning Portal	By 1 July 2021

The above timelines are consistent with the development of the CSP - Think 2050.

Options

The following two options are available for consideration:

1. Council could resolve to develop a LSPS informed by a comprehensive engagement program in conjunction with the CSP engagement and key supporting strategies and plans. Completion date by 30 June 2021.

2. Council could resolve to develop a LSPS which meets the 1 July 2020 deadline.

Option 1 is recommended by staff.

While Council has been requested to provide the Department of Planning Industry and Environment with a completed timeline setting out key milestones to achieve an LSPS by the statutory date, it is recommended that Council request an extension to the statutory timeline outlining the proposed timeline as set out above.

A comparative analysis of these two options is shown below:

	Option 1	Option 2
LSPS well-informed by community using targeted and timely engagement	ü	Limited - reliant on existing engagement and limited targeted engagement
Clear alignment between CSP and LSPS	ü	Potentially limited as LSPS will need to reference existing CSP -Towards 2036
Engagement informing LSPS incorporates North Coast and State planning priorities	ü	Incomplete as not all agencies may be represented in the engagement
LSPS informed by key Council strategies (e.g. Housing Strategy)	ü	X - timeframe does not allow for inclusion of these plans
Approach minimises community confusion and engagement fatigue	ü	X
Synchronised CSP & LSPS reviews consistent with IP&R Framework	ü	X - there will be a need to review the LSPS within 12 months of adoption of the Community Strategic Plan, in June 2021.
Development of LSPS meets legislative deadline	X	ü

It is noted that the State government has provided substantial resources and additional timeframes to metropolitan councils for completion of their Local Strategic Planning Statements and that the LGNSW has been petitioning NSW Planning Industry and Environment on behalf of regional councils for similar extensions. However, the most recent advice from the Department is that failure to deliver council’s first LSPS by the statutory time frame would be breach of the regulation (Attachment 2).

Community Engagement & Internal Consultation

This report has been developed in consultation with the Group Manager, Community Engagement, the Director, Strategy & Growth and the Director, Development & Environment.

Planning & Policy Implications

As with any plan prepared under the provisions of the Environmental Planning & Assessment legislation, once adopted, the LSPS has Statutory recognition.

The statements will become the primary resource to express the desired future for the Local Government Area (LGA) as a whole and for specific areas. The LSPS will identify the need for further local strategic planning effort such as precinct and master planning, local character statements, and infrastructure and local housing strategies.

The LSPS will translate strategic planning work into local priorities and actions that in inform the review and development of future strategic plans at the regional level. This feedback cycle from local to regional planning ensures that the line of-sight between the different levels of spatial planning works both ways. It provides an opportunity for our community to work with Council to shape the future direction and strategic priorities for planning and managing the sustainable use of land across our LGA.

The LSPS must also identify the basis on which Council will monitor and report on the implementation of strategic planning priorities and actions.

Fig 1. Strategic-led Planning Framework

All Local Strategic Planning Statements must be published on the NSW Planning Portal, and consistent with section 11A of the Environment Planning & Assessment (Savings and Transition and Other Provisions) Regulation 2017. All regional councils are required to make their first LSPS before 1 July 2020.

Following adoption of the LSPS, a comprehensive review of Council’s key strategies will be required to ensure any changes in strategic direction, priorities and/or actions are incorporated.

Financial & Economic Implications

In itself there are no financial implications in relation to the development of the LSPS.

This initiative is not included in the current 2019/20 operational plan of Council. Facilitating the Community discussions with the planned engagement on the Community Strategic Plan will have the least significant additional impact on operational activities.

Additionally, once complete, the LSPS will identify a number of actions that will need to be delivered over the short, medium and long term. Each of these actions will be the subject of a separate report to Council detailing specific financial impacts (if any) and effectively form part of the future work program for various areas of Council.

Attachments

1 View. Planning Industry and Environment Letter to Council 28 October 2019

2 View. Planning Minister's Response to Local Government NSW

AGENDA Ordinary Council

20/11/2019

Item: 13.03

Subject: Water Restrictions

Presented by: Infrastructure, Dan Bylsma

Alignment with Delivery Program

4.1.1 Plan, investigate, design and construct water supply assets ensuring health, safety, environmental protection and security of supply for the future growth of the region.

RECOMMENDATION

That Council:

1. Note that the Port Macquarie-Hastings Council LGA is currently recognised as being in “Intense Drought” by the NSW Department of Primary Industry.

2. Note the recent increase in water usage associated with the recent fire activity across the LGA which is likely to continue over the summer period.

3. In response to being in “Intense Drought” and with the likely ongoing fire activity , implement a temporary variation to the current adopted water restriction trigger levels by early implementation of Level 3 water restrictions on 25 November 2019 as follows:

For Residential Use

What days can I water? If your house is an even number you can water on even dates (2nd, 4th, 6th etc.) and if your house in an odd number, you can water on odd dates (1st, 3rd, 5th etc). There is to be no residential outside water use on the 31st of the month.

· Handheld hoses, fitted with a water cut-off trigger or control nozzle can be used for up to 10 minutes before 9am OR after 4pm.

· Watering cans, buckets and tank water can be used at any time.

· Car or boat washing: on a lawn area by bucket only at any time.

· Boat motor flushing: on a lawn area for 5 minutes only at any time.

· Topping up of pools and spas handheld hoses only before 9am OR after 4pm.

· Cleaning windows, walls, roofs and gutters: BANNED.

· Cleaning driveways, paths and hardstand areas: for health and safety reasons only.

· No exemptions for establishing new turf are available from Council.

For Public Areas

· Sporting fields: only recycled water can be used.

· Community gardens: only recycled or tank water can be used.

· Fountains and garden ponds: handheld hose can be used for up to 10 minutes before 9am OR after 4pm.

For Commercial and Industrial Use

· Plant nurseries, bowling greens and market gardens: sprinkler systems can be used for a maximum of 1 hour before 9am.

· There are no restrictions on water required for commercial/industrial production.

· All other businesses can use a handheld hose with cut-off trigger or control nozzle for up to 10 minutes before 9am OR after 4pm.

· Dust suppression is permitted with recycled water only.

4. Request the General Manager to report back to the February 2020 Ordinary Council Meeting with an updated water security situation, including whether there is any improvement in water storage levels, and further recommendations relating to any proposed extension, relaxation or escalation of water restrictions.

Executive Summary

Effective management of our water storages and the mindfulness of our community in conserving water has provided Council with the ability to extend water availability, however, with NSW experiencing one of the most severe droughts on record, it is vital that we do everything possible to assist with the short term security of our water supply.

The Port Macquarie-Hastings Council LGA is currently identified as being in ‘Intense Drought’ by NSW Department of Primary Industries. With limited rainfall on the horizon, Council will reach the trigger point for Level 3 Water Restrictions in late December (45% total combined storage) based on our current demand and predictions.

The forecast for hotter-than-average and drier-than-average conditions for the remainder of 2019 places additional demand on our water supply. These conditions also increase the risk of bushfires that further rely on our water supply.

In considering these factors and coupled with the expected population increase over the holiday season with the influx of visitor, Council is proposing to implement a temporary variation to the current adopted water restriction trigger levels by the early implementation of Level 3 water restrictions in an effort to further reduce overall demand and extend the water availability from our current limited water storages.

Discussion

The Port Macquarie-Hastings Council (PMHC) Water Supply Policy 2015 (further amended 4 December 2018), under sections 2.2.5 - Restrictions during Drought or Emergency Situations, includes that:

PMHC may interrupt, limit or place restrictions on the supply of water including:

· the purposes for which the water can be used, or

· the times when the water can be used, or

· the methods by which the water can be used, or

· the quantities of the water that can be used.

These restrictions may be applied if there is a drought, or if the available stored water, or the available capacity of supply, is so limited as to make extraordinary measures necessary in the general interest of water consumers.

A link to Council’s policies via the Council website is attached for viewing the Water Supply Policy 2015 on-line: https://www.pmhc.nsw.gov.au/About-Us/Publications/Council-Codes-and-Policies-Register

If restrictions are to be applied, PMHC will publish a notice in a newspaper circulating

within PMHC’s area.

Council adopted revised water restriction trigger levels, in line with the 2014 Uniform Regional Water Restrictions at the Ordinary Council meeting of 20 July 2016. The purpose of the Uniform Regional Water Restrictions is to ensure water restrictions adopted by adjoining Councils have the same meaning. In the past, individual Councils have adopted unique water restrictions.

These trigger levels and restrictions for residential outdoor component are as follows:

The General Manager has the delegated authority to exercise a 3% discretion when imposing water restrictions, giving due consideration to the time of year and prevailing weather conditions.

Council have expanded the end user descriptions for Level 3 Very High Water restrictions to provide guidance for our community on specific uses and restrictions as below:

For Residential Use

What days can I water? If your house is an even number you can water on even dates (2nd, 4th, 6^th, etc.) and if your house in an odd number, you can water on odd dates (1st, 3rd, 5^th, etc). There is no residential outside water use on the 31st of the month.

· Handheld hoses, fitted with a water cut-off trigger or control nozzle can be used for up to 10 minutes before 9am OR after 4pm.

· Watering cans, buckets and tank water can be used at any time.

· Car or boat washing: on a lawn area by bucket only at any time.

· Boat motor flushing: on a lawn area for 5 minutes only at any time.

· Topping up of pools and spas handheld hoses only before 9am OR after 4pm.

· Cleaning windows, walls, roofs and gutters: BANNED.

· Cleaning driveways, paths and hardstand areas: for health and safety reasons only.

· No exemptions for establishing new turf are available from Council.

For Public Areas

· Sporting fields: only recycled water can be used.

· Community gardens: only recycled or tank water can be used.

· Fountains and garden ponds: handheld hose can be used for up to 10 minutes before 9am OR after 4pm.

For Commercial and Industrial Use

· Plant nurseries, bowling greens and market gardens: sprinkler systems can be used for a maximum of 1 hour before 9am.

· There are no restrictions on water required for commercial/industrial production.

· All other businesses can use a handheld hose with cut-off trigger or control nozzle for up to 10 minutes before 9am OR after 4pm.

· Dust suppression is permitted with recycled water only.

NSW is experiencing one of the most severe droughts on record with the Port Macquarie-Hastings Council LGA currently identified as being in ‘Intense Drought’ by NSW Department of Primary Industries. There have been extreme low catchment inflows over the past 12 months, which has resulted in limited river extraction opportunities and reliance on our water storages.

Effective management of our water storages and the mindfulness of our community in conserving water has provided Council with the ability to extend water availability, however we are currently 26 days from the Level 3 trigger. Furthermore, should there be no further water extraction opportunities and based on our current demand, we are 90 days away from the 35% trigger point for Level 4 water restrictions, and

141 days away from the 25% trigger point for Emergency Level water restrictions.

The likelihood of drier conditions in eastern NSW has intensified for November and continues into December 2019. While outlooks for drier-than-average conditions may ease into summer, it should be noted that several months of above-average rainfall will be needed to see a recovery from current long-term rainfall deficiencies. Without imminent inflows, the lack of rain will continue to impact water quality and prevent pumping into our storage dams.

The extended dry conditions coupled with ongoing above-average temperatures also increases the risk of bushfires throughout our LGA. This can result in further demands on our water storages, as firefighting efforts often rely on our potable water supply. Additionally, as we approach the holiday season, with increased visitor numbers, history indicates that we can expect an increase of approximately 25% in water usage across the region.

Details of the Level 3 Water Restrictions are included as Attachment 1 of this report. The aim of Level 3 Water Restrictions is to reduce overall demand by 17%.

Options

Council can resolve in line with the recommendation included in this report, or resolve in some other manner.

Community Engagement & Internal Consultation

Council’s Community Engagement Team are working with Water Supply staff to plan the community engagement associated with moving to higher level water restriction ahead of adopted triggers. This will determine all engagement activities and communication platforms including website, media, tourism, correspondence, stakeholder and community messaging for our residential and commercial customers.

Planning & Policy Implications

Should Council support this recommendation for a temporary variation to the adopted water restriction trigger levels, the resolution will result in early implementation of Level 3 Water Restrictions, without imposing a Council licence for nurseries, bowling greens and commercial market gardens, however restricting these businesses using sprinkler systems to a maximum of 1 hour before 9am. A level 3 Water Restrictions Flyer is attached for information (Attachment 1).

Updates on the total combined storage levels will continue to be updated weekly on the PMHC website.

Financial & Economic Implications

Should the council support this recommendation, any reduction is water usage will result in a reduction of water revenue from water consumption usage charges Tier 1 and Tier 2.

All levels of water restrictions are not intended to prevent local businesses reliant on water from continuing business operations (eg. high-pressure water cleaning business, breweries etc). Additionally, for all other business types, water restrictions do apply to all outdoor uses (irrigation, car washing etc) which could have an economic impact on some businesses’ such as car yards washing cars, or aesthetics of frontage gardens as examples.

Attachments

1 View. Level 3 Water Restrictions flyer

AGENDA Ordinary Council

20/11/2019

Item: 13.04

Subject: Proposed Orbital Road Investigation Area

Presented by: Infrastructure, Dan Bylsma

Alignment with Delivery Program

4.4.1 Plan, investigate, design and construct transport assets which address pedestrians, cyclist and vehicular needs to cater for the future growth of the region.

RECOMMENDATION

That Council note the information included in the Proposed Orbital Road Investigation Area report.

Executive Summary

The purpose of this report to provide information on the anticipated impacts of removing the investigation area, which was the subject of detailed community engagement from November 2018 to April 2019, for the east-west link of the proposed Orbital Road from further consideration through a strategic business case process.

While Council does not have in-depth experience in the internal NSW Government’s infrastructure assurance review and subsequent approval process, it has been assessed that the removal of an option prior to undertaking a comprehensive comparative analysis of all identified options would not have a material impact on the strategic business case process.

The main impact removing an option would have, is that it would leave unanswered questions around how the impacts and potential benefits of the option removed compares to the impacts and potential benefits of any other option that may be identified through the strategic business case process. The need to provide an upgraded transport network in urban areas and areas of high environmental value will result in significant impacts, accordingly the removal of an option is likely to shift impacts from one area to another. It is therefore important that any decision to shift impacts is well considered and supported by comprehensive comparative analysis.

The upfront removal of an option may in turn have a material impact on the completeness and validity of the completed strategic business case, which could compromise future applications for funding.

One of the main objectives of undertaking a strategic business case process is to undertake analysis of all feasible solutions (options) to solve an identified problem, with the intent to shortlist the most beneficial and least impactful solutions to take forward for further detailed analysis.

Any option for a new east-west link connecting Ocean Drive to the Oxley Highway would involve crossing the Lake Innes Nature Reserve and the Innes Ruins Historic Site, being lands protected under the National Parks and Wildlife Act 1974. Therefore, only the NSW Government (via a Cabinet proposal) and ultimately the NSW Parliament (via an Act of Parliament) can approve the revocation of land required to support the option. As this approval is a political decision, with supporting information provided by the relevant department, it is unclear whether the removal of one possible option prior to undertaking a comprehensive comparative analysis of all identified options would have a material impact on this decision making process.

It is assessed that there is insufficient information at this stage to definitively remove any option form further consideration.

Discussion

At the 18 September 2019 Ordinary meeting, Council resolved as follows:

13.04 Notice of Motion - Proposed Orbital Road Investigation Area

Mr Philip Lloyd, representing the Alliance and Action Groups, addressed Council in support of the recommendation.

Councillor Dixon left the meeting, the time being 7:40pm.

Councillor Dixon returned to the meeting, the time being 7:43pm.

Mr Tony Thorne, King and Campbell Pty Ltd, representing J Newton Construction and St Agnes Care & Lifestyle, addressed Council in support of the recommendation.

RESOLVED: Cusato/Pinson

That Council:

1. Request the General Manager investigate the impact on the development of the upcoming Strategic Business Case (and possible future solutions for broader transport network improvements), of removing the current investigation area (with impact on residents, a school and retirement village etc) for the east-west Orbital Road from Ocean Drive to Oxley Highway that was the subject of detailed community engagement from November 2018 to April 2019.

2. Request the General Manager table a report to the November 2019 Council Meeting on the impact of removing this investigation area with the intention for Council to investigate alternative routes for the proposed orbital road project. Within this report also include any impacts on applications for funding and impacts on procedures to cross or encroach any nature reserves eg. revocation of such reserves.

carried: 8/0

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

Against: Nil

At the 19 June 2019 Council meeting, Council, in relation to the Proposed Orbital Road, resolved to proceed to undertaking a strategic business case.

The objective of the Strategic Business Case is to define and determine appropriate and viable solutions to improve the Port Macquarie road network.

This will require investigations, analysis and modelling of current and future community needs of the road network as well as identifying constraints. This leads to subsequent development of options addressing the identified needs and constraints, considering both improving the existing network and assessing the possibility of providing new corridors. These options will be compared using Cost to Benefit analysis to identify and articulate the preferred options.

The final product will consist of a well‐considered list of preferred short (0 – 10 years), medium (10 – 20 years) and long term (20+ years) road network improvements solutions documented in a comprehensive Strategic Business Case that can be easily articulated to the community and relevant government departments.

There are significant challenges with planning upgrades and/or new road corridors particularly in urban areas and areas of high environmental value. There are always trade-offs and compromises with very difficult decisions to be made and it is acknowledged that undertaking upgrade works in constrained environments will have significant impacts.

Upgrade and improvement options selection is determined based on a range of considerations and objectives such as:

· maximising traffic benefits by minimising travel times

· maximising improvements to social connectivity

· maximising road safety benefits

· minimising environmental impacts

· minimising private property impacts

· minimising construction cost

· maximising future regional economic development opportunities

The intent of the strategic business case process is to undertake comprehensive comparative analysis to short list options that maximise benefits and minimise impacts.

In terms of any potential new east-west links connecting Ocean Drive to the Oxley Highway, these options would be compared to feasible options to upgrade existing corridors.

As already outlined, any option for a new east-west link connecting Ocean Drive to the Oxley Highway would involve crossing the Lake Innes Nature Reserve and the Innes Ruins Historic Site, being lands protected under the National Parks and Wildlife Act 1974, as shown in Figure 1 below. Therefore, only the NSW Government (via a Cabinet proposal) and ultimately the NSW Parliament (via an Act of Parliament) can approve the revocation of land to support the option. As this approval is a political decision, with supporting information provided by the relevant department, it is unclear whether the removal of one possible option prior to undertaking a comprehensive comparative analysis of all identified options would have a material impact on this decision making process.

The process for revoking land reserved under the National Parks and Wildlife Act 1974 is set out in the NSW Department of Planning, Industry and Environment National Parks and Wildlife Services’ (NPWS) Revocation, Re-categorisation and Road Adjustment Policy. Under the policy, in-principle approval of the Minister is required in order for a proposed revocation to be considered by NPWS, and the final decision as to whether to proceed to table legislation in Parliament is that of the Minister.

Figure 1: Lake Innes Nature Reserve, Innes Ruins Historical Site and Lake Innes

State Conservation Area extent of land protected under the National Parks and

Wildlife Act 1974.

The key requirement under the Policy is that the revocation is essential and the revocation and any compensation land provided results in an overall good public outcome.

Another challenge with providing any new east-west link is that in order to connect onto the Oxley Highway the corridor would have to go through existing properties. Similarly, the upgrade of existing constrained corridors is also likely to have impacts on private property and the environment.

The removal of an option is likely to shift impacts from one area to another. It is important that any decision to shift impacts is well considered and supported by a comprehensive comparative analysis.

The main impact that the removal of an option would have, is it would leave unanswered questions around how the impacts and potential benefits of the removed option compares to impacts and potential benefits of any other option that may be identified through the strategic business case process.

The upfront removal of an option may in turn have a material impact on the completeness and validity of the completed strategic business case, which could compromise future applications for funding.

While Council does not have in-depth experience of the internal NSW Government’s infrastructure assurance review and subsequent approval process, it has been assessed that the removal of an option prior to undertaking a comprehensive comparative analysis of all identified options would not have a material impact on the strategic business case process.

Options

This report is for notation only in relation to providing information in response to the Notice of Motion regarding the Proposed Orbital Road Investigation Area tabled at the 18 September 2019 Ordinary Council meeting.

Community Engagement & Internal Consultation

There has been no external community engagement in relation to this report due to

the fact that this report is an information report only.

Internal consultation has taken place with the following:

• General Manager

• Directors

• Acting Group Manager Infrastructure Planning

• Group Manager Community Engagement

• Group Manager Economic & Cultural Development

External consultation has taken place with the following:

• Transport for NSW – Northern Region

Planning & Policy Implications

There are no planning and/or policy implications in relation to this report, noting it is an information report only.

Financial & Economic Implications

There are no financial and economic implications in relation to this report, noting it is an information report only.

Attachments

Nil

AGENDA Ordinary Council

20/11/2019

Item: 13.06

Subject: Stage 1 Review of Port Macquarie-Hastings Development Control Plan 2013 - Housekeeping amendments

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. Endorse the proposed amendments to Port Macquarie-Hastings Development Control Plan (DCP) 2013 as contained in Attachments 1 - 4 of this report.

2. Publically exhibit the Draft DCP in accordance with clauses 18 and 19 of the Environmental Planning and Assessment Regulation 2000 from 27 November 2019 to 31 January 2020.

3. Delegate authority to the Director Strategy and Growth to correct any formatting, typographical, numbering or cross-reference errors to the Draft Development Control Plan in preparation for public exhibition.

4. Receive a further report following the completion of public exhibition period outlining the community feedback received.

Executive Summary

The purpose of this report is to undertake a stage 1 review of Council’s Development Control Plan (DCP) 2013, which will incorporate Council’s DCP 2011 (Area Based Provisions), so as to create a single draft DCP which applies to the Local Government Area.

The overall aim of the DCP review is to make housekeeping and administrative amendments, which result in minor or incidental changes, making the DCP more user friendly. This update streamlines and modernises the DCP and will assist in a ready transition to the NSW Department of Planning, Industry and Environment’s standard format DCP, which is due to be released in early 2020.

Key house-keeping and administrative changes to the draft DCP include the following:

· The Parts of DCP 2013 have been updated from Parts 1 - 5 to Parts A - D.

· Parts 4, Parts 5 and DCP 2011 have been amalgamated and merged into Part D.

· A table of contents is provided.

· Chapter 1.3 Community Participation is deleted and relevant content transferred to Council’s Draft Community Participation Plan, being put forward at the 20 November 2019 Council meeting for adoption under a separate item.

· Updates to Development Provisions to reflect consistency with other legislative requirements such as State Policies (e.g Exempt and Complying Development Codes), and the Port Macquarie-Hastings LEP 2011.

· All outdated legislative references to the Environmental Planning and Assessment Act 1979 and regulations, and planning-related legislation have been updated.

· Amendment to development provisions for certain matters to address DA issues and bring the DCP in line with current best practice.

· Outdated references to Australian Standards have been updated/removed.

· New subheadings have been created to improve readability of the DCP.

· All Figure and Table numbers will be updated to run through Parts A - D of DCP 2020. Due to the draft nature of the DCP and likely updates as a result of the public exhibition process, any formatting and/or cross referencing updates will occur post-exhibition and prior to finalisation of the DCP.

It is recommended that the track-changed version of draft DCP (at Attachments 1 - 4) be endorsed by Council and placed on public exhibition for an extended timeframe due to the Christmas/ New Year period. The attached draft provides references to relevant Chapters and Development Provisions in DCP 2013 and DCP 2011, deletions are struck through in red text and additions/updates are highlighted in yellow.

Following conclusion of the public exhibition period, the outcome of the exhibition and any submissions received will be reported back to Council, together with any changes to the draft DCP (if required) for final consideration.

Discussion

Background

Council’s Operational Plan for 2019-2020 identifies Action 4.5.1.9, which is to ‘Complete a review of the Port Macquarie-Hastings Development Control Plan’. The review of the DCP is also identified as Action 32 in the Urban Growth Management Strategy 2017-2036.

A Stage 1 review of Council’s DCPs has been commenced to ensure consistency with relevant legislation, make the DCP more user friendly, and to facilitate efficient assessment of development applications.

Department of Planning, Industry and Environment Standard Template DCP

In November 2018, the then NSW Department of Planning and Environment held workshops to start a discussion around preparing a standard template DCP, to be rolled out across NSW municipal areas.

It is understood that the objectives for this standard DCP are to develop a template that will:

· Use standard format, table of contents, and definitions

· Provide best practice model provisions

· Improve consistency and user navigation

· Deliver greater industry confidence

· Allow flexibility to respond to local strategic priorities

A key finding from the above-mentioned workshops was that DCPs are currently lengthy, sometimes include technical documents, are repetitive and there is duplication within them.

Stage 1 DCP Review

Due to the length of time since Council has undertaken a comprehensive review of its DCPs (DCP 2013 and DCP 2011) and the stated intent of the Department to develop standard DCP templates, it is considered that a two-stage process is the best way to prepare for the standard template DCP roll out.

Stage 1 will introduce a table of contents, update the numbering system and provide relevant headings, remove repetition and duplication, update Act references, remove any provisions that are already captured in other documents (e.g. SEPPs and AUS-SPEC), make updates in line with the Australian Design Guide to provide best practice model provisions and make updates in line with adopted/emerging Council policies and/or plans.

This process will ensure Council staff are in a better position to convert the DCP to the standard template when it is finally introduced by the Department.

A comprehensive list and explanation of the proposed key DCP amendments by Chapter can be found at Attachment 5. Further to the key housekeeping amendments outlined in the Executive Summary, the Stage 1 draft DCP review focuses on the following:

1. Streamlining - A key aim of the review is to provide clarity and consistency in content by removing duplication and unnecessary references. There are instances where the provisions in DCP 2013 are covered off in a SEPP, AUS-SPEC or the Building Code of Australia and it is considered unnecessary to double up on these. Further, there are provisions within DCP 2013 that are not achieving their intended effect. These have been deleted to streamline the document and ensure that the DCP is relevant and succinct.

There have also been a number of legislative changes over the years, and in particular to the EP&A Act numbering, references to which have been updated as part of this review.

2. Omissions and anomalies - Minor or administrative amendments to correct obvious omissions, anomalies and obsolete provisions, which have been identified through routine processing of development applications.

3. Reformatting - A standard numbering and naming system will be introduced throughout the draft DCP document to improve structure and identification of parts, sections, subsections and development provisions.

The draft DCP is proposed to contain four (4) Parts A-D as follows:

a) Part A	b) Introduction
c) Part B	d) General Provisions
e) Part C	f) Development Types
g) Part D	h) Locality Specific Provisions (incorporating DCP 2011 Area Based Provisions)

The page numbers will be updated to continue throughout the document rather than restarting at every Chapter, figures and tables will also be numbered continuously throughout. Many of these updates will occur post-exhibition, in the final formatting of the DCP when the DCP is ready to be finalised.

Part D of the attached draft DCP brings together Parts 4 and 5 of DCP 2013 and DCP 2011 (Area Based Provisions). At this stage, these sections have been amalgamated to create one document. Where content is out of date, it has been deleted. Furthermore, maps have been updated and some sentences configured at the front of each section. Any cross referencing to other Parts of the DCP will be undertaken in the final formatting stages of this review.

This is a Stage 1 effort to structure Part D in a similar way to Parts A - C. This part requires significant further work to improve the structure, streamline and update the content. It is considered that this is beyond a Stage 1 review and will form a key component of the Stage 2 review.

4. Amendments to Development Provisions - The updates outlined below are also being made to ensure transparency in the assessment process and/or are to bring the DCP in line with current best practice. A comprehensive list and explanation of the proposed key DCP amendments by Chapter is contained in Attachment 5.

The below updates are in addition to those mentioned in the Executive Summary concerning SEPPs, AUS-SPEC, Australian Standards and the Australian Building Code, which are considered to be procedural to align the DCP with current legislative standards and policy changes that have occurred since the last review of the DCP.

These involve:

· Updates to Development Provisions to reflect consistency with various State Policies including SEPP (Exempt and Complying Development Codes) 2008, which was updated in 2019; SEPP 65 - Design Quality of Residential Apartment Development, which was updated in 2017; and SEPP (Vegetation in Non-Rural Areas) 2017, which commenced in 2017.

· Updates to outdated legislative references to the Environmental Planning and Assessment Act 1979 and regulations, and planning-related legislation.

· Outdated references to Australian Standards/Australian Building Code have been updated/removed.

Chapter 2.5 Transport, Traffic Management, Access and Car Parking (Traffic Generating Development)

a) A car parking requirement for Educational Establishments (schools) has been introduced at Table 2.5-1. This provision previously existed in Council’s historic DCP 18 for a number of years and was not retained in the current DCP. From a Development Assessment perspective, this provision standardises the requirements and provides certainty for car parking by removing the requirement of an additional study.

Refer to at Attachment 2 (Part B) for relevant section of draft DCP.

Chapter 2.6 Tree Management (Tree Management - Private Land)

b) Development Provision 2.6.3.2 (c) - updated to include compensation of two (2) koala habitat trees rather than one, consistent with current requirements. Furthermore, compensation of two koala habitat trees is consistent with the ratio prescribed for Complying Development. It is considered logical to align these requirements.

Refer to at Attachment 2 (Part B) for relevant section of draft DCP.

Chapter 3.2 Low Density Residential Development

c) Chapter 3.2.1 has been updated to include reference to terrace housing and secondary dwellings in a low density residential development.

d) Development provision 3.2.2.13 (c) has been updated to increase the maximum allowable area for a platform at the end of a jetty walkway from 10m² to 16m² to reduce unnecessary triggers for Development Applications. It is submitted that a large number of platforms approved are greater than 10m² and there is no planning justification for the area specified, or any adverse impact on increasing the maximum.

Furthermore, applications for jetties form part of an integrated referral process (meaning approval from Council and Crown land) and require owner’s consent (Crown Land). Consequently, any issues would be identified as part of that approval process.

Refer to at Attachment 3 (Part C) for relevant section of draft DCP.

Chapter 3.3 Residential Flat Development, Tourist and Visitor Accommodation, Mixed Use Development (Building Depth and Deep Soil Zone)

e) Development provisions 3.3.2.11 (a - b) relating to the deep soil zone have been deleted and replaced with objective 3E-1 from the NSW Government’s Apartment Design Guide.

Refer to at Attachment 3 (Part C) for relevant section of draft DCP.

Chapter 3.3 Residential Flat Development, Tourist and Visitor Accommodation, Mixed Use Development, Chapters 3.4 Business and Commercial Development, Chapter 3.5 Industrial Development (Waste Management)

f) All waste provisions in DCP 2013 (previously referenced in Chapters 3.3.2.46, 3.4.3.24, 3.4.3.25, 3.4.3.26 and 3.5.3.10) have been consolidated in the Environmental Management section of draft DCP (refer to at Attachment 2 for relevant section of draft DCP). Reference is also made (in the Environmental Management section) to development complying with Council’s Waste Minimisation and Management Policy.

The draft Waste Minimisation and Management Policy is being reported separately to Council at its meeting on 20 November 2019 to coincide with this report, and subject to Council’s resolution on that matter, will be included in the draft DCP updates for exhibition.

Note: the numbers and tables referred to in a - f above are references to the existing numbering conventions in DCP 2013. These will be updated prior to finalising the draft DCP.

A track changed version of DCP 2013 and DCP 2011 by part is provided at Attachments 1 - 4.

Options

Council’s options are:

1. Resolve to endorse the draft DCP as contained at Attachments 1 -4 of this report and place it on public exhibition.

2. Resolve to undertake further amendments to the draft DCP and then place it on exhibition

3. Resolve not to approve the draft DCP described in this report.

4. Seek further information.

Option 1 is recommended as it would enable the above to be achieved in the required 2019 - 2020 timeframe. It would also ensure that Council staff are in a better position to undertake Stage 2 of the comprehensive review when the Department release the standard template DCP later this year/early next year.

Option 2 may result in a delay in meeting the requirements of the 2019 - 2020 Operational Plan, which requires Council staff to commence a comprehensive review of the Port Macquarie-Hastings DCP.

Option 3 is not recommended as it will make Stage 1 very difficult to achieve in the Operational Plan timeframes and will make Stage 2 a much larger task.

Option 4 is available to Council if there is any further information required before making a decision to endorse the draft DCP.

Community Engagement & Internal Consultation

The draft amendment has been prepared by Strategic Land Use Planning staff in consultation with staff from the following teams:

· Development Assessment

· Development Engineering

· Natural Resources, and

· Recreation and Buildings

The Draft DCP will be placed on exhibition for a minimum of 28 days, from 27 November 2019 - 31 January 2019.

As this timeframe also includes the 20 December - 10 January excluded period under the Environmental Planning and Assessment Act 1979, and given the Christmas/New Year period, it is proposed to exhibit the draft DCP for an extended period.

As part of the exhibition, consultation will be promoted through:

· Information on Council’s online community engagement hub - Have Your Say

· Public exhibition notice in local newspapers

· Hard copies of exhibition material and information on how to comment will be available at Council’s Laurieton, Port Macquarie and Wauchope Customer Service Centres

Following public exhibition, staff will review all submissions made and make recommendations in relation to issues raised. These issues and recommendations will be reported back to Council, together with any changes to the draft DCP (if required) for final consideration.

Planning & Policy Implications

The draft amendments to DCP 2013 will improve the format, remove unnecessary content and make for a more user friendly document.

The draft amendment has been prepared in accordance with Section 3.43 of the Environmental Planning and Assessment Act 1979 and Clause 16 of the Environmental Planning and Assessment Regulations 2000.

Financial & Economic Implications

The Stage 1 review of the DCP has been undertaken within existing staff resources in the Strategy & Growth and Development & Environment divisions.

Attachments

1 View. DRAFT Port Macquarie-Hastings Development Control Plan 2013 - Part A - Introduction (November 2019)

2 View. DRAFT Port Macquarie - Hastings Development Control Plan 2013 - Part B - General Provisions (November 2019)

3 View. DRAFT Port Macquarie-Hastings Development Control Plan 2013 - Part C - Development Types (November 2019)

4 View. DRAFT Port Macquarie-Hastings Development Control Plan 2013 - Part D - Locality Specific Provisions (November 2019)

5 View. Summary of Key Proposed DCP Amendments by Chapter (November 2019)

AGENDA Ordinary Council

20/11/2019

Item: 13.07

Subject: Planning Proposal: Mission Terrace, Lakewood - Consideration of Submissions

Presented by: Strategy and Growth, Jeffery Sharp

Alignment with Delivery Program

4.5.2 Plan for infrastructure that supports population growth.

RECOMMENDATION

That Council:

1. As a result of the consideration of submissions, amend the Planning Proposal to adjust the eastern boundary of the proposed R1 General Residential zone and make corresponding amendments to the Height of Buildings, Lot Size and Floor Space Ratio LEP maps, as described in this report.

2. Subject to approval under Item 1 above, and following certification of building upgrade works to the four buildings on the eastern interface of the proposed R1 General Residential zone, as described in this report, take the necessary steps under section 3.35 and 3.36 of the Environmental Planning and Assessment Act 1979 to finalise Local Environmental Plan (Amendment No 49).

3. Delegate authority to the Director Strategy and Growth to make any minor amendments to the Planning Proposal in finalising the matter.

4. Notify all persons who lodged a submission of Council’s decision.

Executive Summary

This report considers the submissions received in response to the public exhibition of the Mission Terrace Planning Proposal.

The Planning Proposal relates to a proposed rezoning of a Mission Training Facility at Lakewood (Lot 2 DP 771931) from RU1 Primary Production to R1 General Residential. The intent is to permit future permanent residential occupation and development of the existing cleared and developed area of the site.

The proposal also involves a rezoning of the remaining RU1 land on the site to E3 Environmental Management. This area is undeveloped and intact bushland. Application of the E3 zone is intended to provide a greater level of environmental protection to this area and is consistent with the E3 zoning on the remainder of the land.

The Planning Proposal was exhibited for comment for 28 days from 18 September to 16 October 2019. Two submissions were received and are considered in the ‘Discussion’ and ‘Community Engagement and Internal Consultation’ sections of this report.

The Biodiversity Conservation Division (BCD) of NSW Department of Planning, Industry and Environment has requested a biodiversity assessment to justify the suitability of the proposed E3 zone for the residue RU1 land. The BCD has suggested that otherwise, the E2 Environmental Conservation zone be applied to the residue lands outside of the proposed R1 zone, however, on review, this request is not supported by Council staff.

It is recommended that Council proceed to approve the exhibited Planning Proposal, with a minor amendment to extend the eastern boundary of the proposed R1 zone in response to a submission from the Proponent, as discussed in this report.

Discussion

Background

Council Meeting November 2017

On 15 November 2017, Council considered a report on a Planning Proposal request to rezone the Mission Training Facility at Lakewood, on part of Lot 2 DP 771931, from RU1 Primary Production to R1 General Residential. The intent was to allow permanent residential occupation of the existing dwellings (student accommodation) and the construction of the remaining approved dwellings. The request also involved a proposed rezoning of the residue RU1 Primary Production area of the site to E3 Environmental Conservation. Council resolved as follows:

RESOLVED: Griffiths/Pinson

That Council:

1. Prepare a planning proposal pursuant to section 55 of the Environmental Planning and Assessment Act 1979 in relation to part of Lot 2 DP 771931, Mission Terrace, Lakewood for residential and environmental purposes as described in this report.

2. Submit 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 and the issue of 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.

3. Delegate authority to the Director Strategy and Growth to make any amendments to the planning proposal as a result of the section 56 Gateway Determination, prior to public exhibition of the proposal.

4. Note that a further report will be presented to Council following the public exhibition period to demonstrate compliance with the Gateway Determination and to provide details of any submissions received during public exhibition.

CARRIED: 8/0

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

AGAINST: Nil

Gateway determination

On 19 December 2017, the NSW Department of Planning and Environment (now Dept. of Planning, Industry and Environment) issued a Gateway determination to allow the preparation of the Planning Proposal, and amongst other matters, specified requirements for consultation with State Government agencies and the community.

Pre-exhibition consultation with State Government agencies

The Gateway determination required that prior to public exhibition of the Planning Proposal, consultation occur with the following State agencies:

- Office of Environment and Heritage (OEH)

- NSW Rural Fire Service (RFS)

- Purfleet Taree Local Aboriginal Land Council

Written responses were received from OEH and RFS. Section D Q11 of the exhibited Planning Proposal (Attachment 1) includes details of the issues raised by these agencies and Council’s response.

Significant delays occurred during this phase of the Planning Proposal preparation due to the need for the Proponent to commission several revisions to the Bush Fire Assessment report (Aug 2018, Nov 2018 & May 2019) to address issues raised by the RFS over a 16-month period.

In correspondence dated 25 July 2019, the RFS advised support to the Planning Proposal subject to the four dwellings on the eastern boundary of the proposed R1 zone being upgraded in accordance with section 3.4.4.4 of the amended Bush Fire Assessment report (May 2019). The landowner has committed to completing these works by mid-November 2019.

Prior to finalising the LEP amendment to rezone the land, certification of compliance with the upgrade of these dwellings is to be submitted to the satisfaction of Council staff.

Public exhibition

The Planning Proposal was publicly exhibited for 28 days from 18 September to 16 October 2019. A copy of the exhibited proposal is at Attachment 1. Together with the Proponent and adjoining landowners, the RFS, OEH and Purfleet Taree Local Aboriginal Land Council were notified of the exhibition and invited to make submissions.

Two submissions were received as a result of the exhibition. In brief, the Biodiversity Conservation Division (formerly OEH) questioned the appropriateness of applying an E3 Environmental Management zone to the residue RU1 Primary Production area of the site, in addition to the potential for impact on the visual amenity of the adjoining Dooragan National Park. The Proponent seeks an amendment to the exhibited R1 General Residential zone boundary.

Copies of the submissions have been provided to Councillors under separate cover for the information of Councillors. A summary of the submissions and a planning response to the issues raised is provided in the Community Engagement & Internal Consultation section of this report. Key issues are discussed below:

Key Issues

1. Suitability of proposed E3 Environmental Management Zone

During the pre-exhibition consultation phase, the Office of Environment and Heritage (OEH) now the Biodiversity Conservation Division (BCD), raised concerns about the lack of ecological assessment to support the E3 Environmental Management zone being applied to the residue RU1 Primary Production area of the site.

The OEH recommended that Council consider all forested parts of the site outside of the proposed R1 zone as containing high ecological values and that the E2 Environmental Conservation zone be applied to this area of the site.

As discussed in Section D Q11 of the exhibited Planning Proposal, Council staff considered that it was not reasonable to apply the E2 zone as suggested. Therefore, the Planning Proposal was exhibited showing a proposed E3 zone for the RU1 area of the site (refer Figure 1).

In response to the public exhibition, BCD restated their earlier concerns regarding the lack of biodiversity information to justify the E3 zone being applied to the RU1 residue. Whilst not formally objecting to the Planning Proposal progressing, the BCD recommends that Council consider:

- requiring a biodiversity assessment of the current RU1 zoned land to be undertaken and provided for BCD’s review to justify the appropriateness of applying the E3 zone to this area of the site; or

- applying the E2 Environmental Conservation zone to the residue RU1 and E3 zoned lands.

The submission also references LEP Practice Note PN-09-002 advising that it states that prior to applying an environmental protection zone “…the environmental values of the land should be established, preferably on the basis of a strategy or from an environmental study developed from robust data sources and analysis. This is particularly important where land is identified as exhibiting high ecological, scientific, cultural or aesthetic values outside national parks and nature reserves”.

The BCD is of the view that as this was not done, the Council may have insufficient information before it to determine the most appropriate zone for the bushland area of the site.

· Comments from Council’s Strategy & Growth Division

The Proponent’s rezoning request was only ever intended to facilitate the change of use of the existing student accommodation on the site so it can be used as dwelling houses without an association with the educational establishment use. The Planning Proposal also notes some potential may exist for an additional five Torrens title lots in the north of the proposed R1 area, however, this land is contained wholly within the boundary of the existing cleared footprint.

It was Council’s initiative to include the RU1 land in the Planning Proposal which Council proposed to rezone to E3. The intent was to significantly improve the protection of the environmental values for this part of the site, markedly beyond that which is currently provided by the RU1 zone. The landowner agreed to this approach, even though the RU1 land was not part of the rezoning request and there is no development proposed for this highly constrained area of the site.

The existing and proposed zoning of the site is shown in Figure 1 over the page.

Figure 1: Existing and proposed land use zoning

The Department of Planning, Industry and Environment’s Team Report to the Gateway Panel dated 19 December 2017 considered the intent of LEP Practice Note referred to in BCD’s submission and noted that, “The Planning Proposal relates to that part of the lot already developed with the residue being rezoning from RU1 to E3. This rezoning will by default add a considerable level of protection to the biodiversity values that exist within the residue lot and it is considered unnecessary to require the applicant at this stage to undertake rigorous environmental studies to determine whether it is more suitable to an E2 Environmental Conservation Zoning.”

The report goes on to say, “It is however recommended that consultation with OEH take place on a more formal level post Gateway determination to enable further consideration should more detailed information become available.”

As neither Council nor the Gateway determination required the Proponent to undertake more detailed environmental study to support the Planning Proposal and BCD do not appear to have undertaken further detailed investigations, the level of information available has not changed since the Gateway Panel considered the proposal (December 2017). Therefore, it is not reasonable to require application of an E2 zone to the residue of the site.

Whilst acknowledging BCD’s concerns about the proposed E3 zone, there are no proposed ecological impacts associated with the rezoning that would require environmental offsets within the residue, and the change from RU1 to E3 is a significant increase in environmental protection of the values within the residue area of the site. In this instance therefore, Council staff consider that on balance the E3 zone will retain a reasonable level of protection for the site.

2. Potential impact on visual amenity of Dooragan National Park

The BCD recommend that consideration be given to the potential for impacts on the visual amenity from Dooragan National Park, particularly from the main access road, Captain Cook Bicentennial Drive. To assist in understanding the potential for such impacts, the BCD suggest that the Proponent be required to install height poles to demonstrate if there is a visual impact from key viewpoints.

· Comments from Council’s Strategy & Growth Division

The Mission Training Facility (i.e. proposed R1 zone footprint) is neither visible from the access road leading to Dooragan National Park, nor from the viewing platforms located at the top of North Brother Mountain. The site is located too far to the west of Captain Cook Bicentennial Drive to be visible.

Also, Captain Cook Bicentennial Drive passes through heavily timbered forest with canopies of 20 to 30m in height, intervening between the road and the Planning Proposal site. Images taken by Council staff on 25 October 2019 are shown below to illustrate.

3. Land Zone Map amendment

The Proponent seeks an amendment to the exhibited Land Zone Map to ensure that the proposed R1 General Residential zone accurately aligns with an existing approved and cleared Asset Protection Zone (APZ) to permit ongoing management of the APZ within the R1 zone.

· Comments from Council’s Strategy & Growth Division

It was always Council’s intent to apply the proposed E3 zone to the vegetated area of the site currently zoned RU1, however LEP mapping of this nature is a challenge when zone boundaries do not follow cadastre. A 5m shift in the R1 zone boundary to the east will incorporate the existing cleared APZ. Figure 2 shows the extent of this adjustment.

Given the circumstances, it is considered reasonable that the Land Zone Map be amended as shown in Figure 2 and that corresponding amendments be made to the exhibited Height of Buildings, Floor Space Ratio and Minimum Lot Size LEP Maps to align with the adjusted R1 zone boundary. As this minor amendment does not substantially alter the exhibited Planning Proposal, re-exhibition is not proposed.

Figure 2 - Recommended amendment to exhibited R1 General Residential zone boundary

Options

Council’s options are:

1. To approve the Planning Proposal as exhibited and resolve to make the LEP to rezone the land.

2. To approve the Planning Proposal with minor amendments as outlined in this report and resolve to make the LEP to rezone the land.

3. Make further amendments to the Planning Proposal. Note, if any substantive change is made, re-exhibition will be required.

4. Not support the Planning Proposal.

5. Seek further information.

Option 2 is recommended.

Community Engagement & Internal Consultation

The Planning Proposal was placed on public exhibition for 28-days (18 Sep to 16 Oct 2019) in accordance with the requirements of the Gateway determination. Two submissions were received. The key matters identified in the submissions have been considered in the Discussion section of this report. A summary of the submissions and a planning response to the issues raised is provided below.

Submission			Issue
1.	Biodiversity and Conservation Division of NSW Planning, Industry & Environment		a. The key issue raised in the BCD submission relates to the appropriateness of the proposed E3 zone for the forested areas of the site outside of the proposed R1 General Residential zone. 1. b. The submission also notes that the Planning Proposal will allow intensification of residential development below the 30m contour and therefore, this is considered a reasonable basis for more detailed environmental study to be undertaken of the residue lands to determine the appropriateness of the proposed E3 Environmental Management zone. c. It is requested that consideration be given to the potential for impacts on the view cone and/or visual amenity from the adjoining Dooragan National Park, particularly from the main access road, Captain Cook Bicentennial Drive.
	*Response/* *Comment*:	a. This matter is addressed in the Discussion section of this report. The request for more detailed environmental study to justify the proposed E3 Environmental Management zone or otherwise, application of the E2 Environmental Protection zone to the residue portion of the site, is not supported. b. The capacity for increased development potential below the 30m contour is a very modest potential increase (i.e. possibly 5 Torrens title lots) which will be contained within the existing cleared footprint. It is not considered reasonable justification to require the proponent to undertake detailed environmental investigation of the residue lands. 2. c. This matter is addressed in the Discussion section of this report. There will be no visual impact on Dooragan National Park as a result of the Planning Proposal.
2.	Blueprint Planning		The proponent’s submission requests a minor LEP map amendment to extend the eastern boundary of the proposed R1 General Residential zone to incorporate an existing approved and cleared Asset Protection Zone (APZ).
	*Response/* *Comment*:	This matter is addressed in the Discussion section of this report. It is recommended that the proposed R1 zone boundary be adjusted to include the existing cleared APZ.

The BCD and the Proponent have been advised of this matter being reported to the November 2019 meeting of Council for a decision on the Planning Proposal.

Planning & Policy Implications

The preparation of a Planning Proposal for the site was considered and prioritised

along with other site-specific proposals in a report to Council dated 15 March 2017.

The proposal is considered to be consistent with the Port Macquarie-Hastings Urban

Growth Management Strategy 2017-2036 as infill residential representing a minor amendment to the R1 General Residential zone in this location. Also, the proposed E3 Environmental Management rezoning of the residue RU1 area is considered to represent a significant increase in environmental protection of the values for this part of the site.

The Gateway determination authorises Council to exercise delegation of the plan making function under section 3.36 of the Environmental Planning and Assessment

Act 1979 for the Planning Proposal. Further work is required to finalise the proposed amendment to the Port Macquarie-Hastings Local Environmental Plan (LEP) 2011, consistent with the delegation. Strategic land use planning staff will complete these technical requirements to finalise the LEP following a decision by Council.

As part of this work, Council needs to obtain the agreement of the NSW Department of Planning, Industry and Environment’s Secretary to comply with the requirements of Section 9.1 Ministerial Direction No. 4.4 Planning for Bushfire Protection. This will be contingent upon the proponent submitting certification of compliance with section 3.4.4.4 of the amended Bush Fire Assessment report (May 2019), to the satisfaction of Council staff, for the upgrade of the four dwellings on the eastern boundary of the proposed R1 zone.

Financial & Economic Implications

The Proponent, in accordance with Council’s Schedule of Fees and Charges for amendments to the Port Macquarie-Hastings Local Environmental Plan 2011, has funded the cost of preparing the Planning Proposal.

Attachments

1 View. Planning Proposal: Mission Terrace - Public Exhibition Version (September 2019)

AGENDA Ordinary Council

20/11/2019

Item: 13.08

Subject: Floodplain Management

Presented by: Development and Environment, Melissa Watkins

Alignment with Delivery Program

4.2.1 Develop and implement coastal, estuary, floodplain, and bushfire management plans.

RECOMMENDATION

That Council:

1. Reconsider the adoption of Climate Change ‘Scenario 3’ (400mm SLR plus 10% increase in rainfall) as the basis of the Flood Planning Area (FPA) and adopt ‘Scenario 1’ (900mm SLR plus 10% increase in rainfall).

2. Note that the Floodplain Risk Management Study phase of the Wrights Creek and Hibbard Precinct projects will not be undertaken at this time.

3. Note that the next phase of both projects will be subject to a future Operational Plan budget process.

4. Write to people who made a submission on both projects and advise them that the Floodplain Risk Management Study phase will not be undertaken at this time.

Executive Summary

At the 12 December 2018 meeting, Council resolved to adopt climate change ‘Scenario 3’ (400mm SLR plus 10% increase in rainfall) as the basis of the Flood Planning Areas (FPA) in the Hastings River (Item 12.12) and Wrights Creek (Item 12.13) catchments. Climate change ‘Scenario 1’ (900mm SLR plus 10% increase in rainfall) was recommended to be adopted for both items.

This was a change in policy direction and is a departure from Port Macquarie-Hastings Councils (PMHC) approach to floodplain management.

Since the adoption of Scenario 3 for Flood Planning Areas in the Hastings River and Wrights Creek, work has commenced on implementing this new direction. This work has identified that the new policy direction has resulted in a range of issues that need to be considered further. This report outlines the implications of this decision on existing projects and work completed since the decision was made.

Implications of adopting climate change Scenario 3

1. Adopting climate change Scenario 3 for Hastings and Wrights Creek catchments results in inconsistencies with adopted Flood Policy (2018) and other catchments in the LGA specifically the Camden Haven.

2. New flood mapping is required to ensure consistency across the LGA

3. The Flood Policy will require amendment to ensure consistency across the LGA and to clarify how development types other than dwellings will be assessed.

4. Additional funding of approximately $100,000 is required to align flood mapping, the policy and flood projects with the Scenario 3 decision.

Flood projects

The December 2018 decision along with delays from consultants has prevented Council proceeding to the next phase of the Wrights Creek Floodplain Management Plan in a timely manner. These delays have impacted Councils ability to deliver the project within the timeframes agreed to under the grant program (ie. the NSW Floodplain Management Program).

The Hibbard Precinct Flood Study (2019) was adopted on 17 July 2019 (Item 13.06) as recommended (ie. with a 900mm SLR scenario). However, a range of issues have impacted Councils ability to deliver the Hibbard Floodway Investigation project within the timeframes agreed to under the grant program (ie. the NSW Floodplain Management Program).

The OEH grant unit (now part of DPIE) have adopted new strict funding rules that have reduced the flexibility of these types of long duration and variable scope projects.

As a result, the Wrights Creek Floodplain Management Plan project has been terminated and the Hibbard Floodway Investigation project has been suspended for a minimum of 18 months.

As a result of the termination and suspension of these projects, without additional funding Council cannot proceed with the Floodplain Risk Management Study (FRMS) phases for both projects, as resolved by Council on 12 December 2018.

Grants - Floodplain Management Program

Council has not been able to proceed to the next phases of the Wrights Creek and Hibbard precinct Flood Management Studies and is required to return $97,100 in unspent grant funds.

Future grant applications will need to be made to secure future funding to complete these projects.

The grant for the Hastings River Flood Study Update (2018) was successfully completed and the grant was acquitted in March 2018.

This report recommends that due to the increased cost implications and potential conflict with existing flood studies, Council reconsider the adoption of climate change scenario3 and instead adopt climate change scenario 1.

Discussion

Background

Under the NSW Government Flood Prone Land Policy, management of flood prone land is primarily the responsibility of Councils. A Council must complete a four stage floodplain management program in accordance with the NSW Governments Floodplain Development Manual (2005) (see Figure 1). The formulation and implementation of floodplain risk management plans is the main goal of the floodplain management process. The process ensures economic, social and environmental costs of floods are considered and explores the options available to address flood risk.

Figure 1 - Flood management process

Historical Floodplain Management

PMHC have proactively applied freeboard to mitigate risks associated with the inherent inaccuracies of flood modelling, accounting for the potential impacts from larger flood events and for flooding impacts of climate change. This foresight has ensured that many developments completed within the past 30 years have factored climate change into their planning, design and construction.

In 1990, Council amended its Flood Prone Land Policies No. 69 and 70 (ie. the Camden Haven River and Hastings River) and adopted an 800mm freeboard above the 100 year flood level. This allowance was for a ‘Greenhouse Effect’ and included 300mm SLR allowance in accordance with its Greenhouse Policy.

In April 2007, Council adopted the Interim Port Macquarie-Hastings LGA Flood Policy (2007). This policy combined the two existing flood policies of the Camden Haven River and Hastings River catchments. The 2007 Flood Policy applied a climate change allowance of an 800mm freeboard downstream (East) of the Pacific Highway and a 400mm freeboard upstream (West) of the Pacific Highway.

In 2009 the NSW Government adopted a Sea Level Rise Policy Statement to support adaptation to projected sea level rise (SLR) impacts. The Policy Statement includes SLR planning benchmarks for use in assessing the potential impacts of SLR in coastal areas, including flood risk and coastal hazard assessment. These benchmarks projected rise in sea level relative to 1990 mean sea level. The projections (scenarios) were derived from sea level rise projections by the Intergovernmental Panel on Climate Change (IPCC) and the CSIRO.

In 2010, Council adopted a small increase (100mm) to the ‘interim’ climate change allowance resulting in a 900mm freeboard downstream (East) of the Pacific Highway and a 600mm freeboard upstream (West) of the Pacific Highway. This reflected the NSW Governments Sea Level Rise Policy Statement.

The Sea Level Rise Policy Statement was repealed by the NSW Government in 2012, however coastal councils were encouraged to adopt their own sea level rise projections. Regardless of the NSW Government’s approach, the ‘benchmarks’ described in the Sea Level Rise Policy Statement remain the best information available for Council and remains widely used in NSW.

The release of the NSW Sea Level Rise Policy Statement occurred during the development of the Hastings River Floodplain Management Study (2012). It was agreed with OEH to adopt ‘interim’ climate change modelling as a means of not delaying the Management Study and that an action would be included in the final Hastings Floodplain Risk Management Plan recommending Council undertake climate change modelling at a later stage. This action was ultimately adopted in the Hastings Floodplain Risk Management Plan (2014), which was adopted be Council in May 2014.

The Hastings River Flood Study Update (2018) was the result of a priority action in the Hastings River Floodplain Risk Management Plan (2014) to update the 2006 Hastings River Flood Study and to undertake comprehensive climate change modelling. Given the historical direction of PMHC, this flood study update project focused on a 900mm SLR scenario but still modelled other scenarios for completeness and to consider relative impacts.

The Hastings River Flood Study Update (2018) also included flood model refinements including improved terrain information such as new subdivisions and the new Pacific and Oxley Highway features. The flood model software has also been improved since the 2006 version.

The Coast, Estuary and Flood (CE&F) Advisory Sub-Committee endorsed the Hastings River Flood Study Update report and the Wrights Creek Flood Study Update report on 30 March 2017 and 31 July 2018 respectively. The CE&F Sub-Committee recommended to Council that each report be placed on public exhibition.

Community Engagement & Internal Consultation

Hastings River

On 16 May 2018 (Item 12.04), Council resolved to publicly exhibit the draft Hastings River Flood Study Update report and the revised draft Port Macquarie-Hastings Flood Policy (Attachment 1) for 60 days.

As part of the public exhibition Council staff;

· Sent over 380 letters to properties that would be directly affected by the proposed FPA changes

· Presented at a meeting attended by key local development and construction industry representatives

· Held a public ‘drop-in-session’ which was also attended by the flood consultant

· Hosted a ‘Have Your Say’ webpage on the PMHC website

· Published multiple ‘Community Now’ notices in local newspapers

· Published a media release advising impacted residents to contact Council

· The Port News also published a news article about the study.

Five submissions were received during the exhibition period.

Wrights Creek

On 19 September 2018, Council resolved to publicly exhibit the draft Wrights Creek Flood Study Update report for a minimum of 28 days. The report was placed on public exhibition from 1 October to 2 November 2018 (32 days)

As part of the public exhibition process council staff:

· Wrote to property owners within the Wrights creek catchment to advise them of the Draft Flood Study (approx. 480 properties)

· Notified key local development and construction industry representatives via the Construction Industry Connect newsletter

· Held a public ‘drop-in-session’ which was also attended by councils flood consultant

· Hosted a ‘Have Your Say’ webpage on the PMHC website

· Published ‘Community Now’ notices in local newspapers

· Posted the draft Flood Study on Council’s social media account

· The Port News also posted a story on their social media platforms

12 submissions were received during the public exhibition period.

Hibbard Floodway Investigation

At its meeting on 15 May 2019 (Item 12.04), Council resolved to publicly exhibit the draft Hibbard Precinct Flood Study report for a minimum of 28 days. The report was placed on public exhibition from 20 May to 17 June 2019 (29 days)

The following details the consultation undertake for this project.

· Hosted a ‘Have Your Say’ webpage on the PMHC website

· Held a public ‘drop-in-session’ which was also attended by the flood consultant

· Advised key construction and industry stakeholders via the local Construction Industry Association Group (CIAG) newsletter.

During the public consultation period a total of two submissions were received.

All studies were presented to the CE&F Sub-Committee and were recommended for exhibition.

Internal consultation was held with key Council staff and support was provided for the findings of the studies.

Council briefing sessions

At the 12 December 2018 meeting, Council resolved to adopt climate change ‘Scenario 3’ (400mm SLR plus 10% increase in rainfall) for the basis of the Flood Planning Areas (FPA) in the Hastings River (Item 12.12) and Wrights Creek (Item 12.13) catchments.

Briefing sessions with Councillors were held on 14 March 2018, 7 November 2018 and 1 May 2019 to discuss the climate change scenarios.

Planning & Policy Implications

Implications of adopting climate change Scenario 3

The adoption of Scenario 3 (400mm SLR plus 10% increase in rainfall) for flood planning levels (FPL) in the Hastings and Wrights Creek catchments has created uncertainty with how PMHC will manage other areas of the floodplain (e.g. the Camden Haven) which has been utilising results from Scenario 1 since the Flood Policy was adopted in 2015.

Staff have further considered the implications of adopting Scenario 3 and below is an overview of the key issues, implications and actions that are relevant following this Council decision.

Community implications

Each scenario impacts on the land defined as flood prone. PMHC has had a SLR allowance for nearly 30 years with the community and development industry familiar with these requirements. This was reflected during the community consultation phase where very few submissions were received, especially from the development industry who have been using 900mm SLR in all development industry led rezoning’s, planning proposals and subdivisions since around 2005.

Predominantly, the largest changes to the Flood Planning Area (FPA) will be defined by SLR impacts near the ocean entrance at Port Macquarie. Climate change impacts from increased rainfall intensity will have more impact between Wauchope and Bains Bridge (ie. upstream of Rocks Ferry Bridge).

For Wrights Creek the impact of SLR is effectively nil. This is due to steep nature of the catchment. The impacts of all climate change scenarios do not extend beyond the Lake Road bridge - there is no difference to the flood levels in this catchment regardless of which Scenario is chosen. However, for consistency and completeness Scenario 1 was recommended by the consultants and staff.

The adopted Flood Policy (2018) is reflective of a 900mm SLR scenario and included special precinct areas designed to clarify areas where development and flood risk is well understood.

A 900mm SLR allowance was adopted for the Camden Haven River catchment in 2015. This value has been applied to all developments undertaken within the catchment and remains in place (ie. It was not affected by the December 2018 decision). This creates inconsistency across PMHCs two main catchments (ie. Hastings and Camden Haven).

Flood mapping

Until the December 2018 resolution, a 900mm SLR allowance was used in all PMHC flood studies and development industry flood studies commissioned for rezoning and Development Application purposes. Effectively all catchments that have developed a flood study since 2005 have used a 900mm sea level rise allowance.

Flood studies with a 900mm SLR component include:

· Yippin Creek Flood Study (2005 & 2007),

· Area 13 Flood Study (2007) (ie. Thrumster/Sovereign Hills),

· Area 14 Flood Study (2010) (ie. Lake Cathie/Bonny Hills),

· Area 15 Flood Study (2011) (ie. West Haven/Kew),

· Camden Haven and Lakes System Flood Study (2013),

· Beechwood Rural Residential Flood Study (2015).

· Hibbard Precinct Flood Study (2019)

· North Brother Local Catchments Flood Study (2019)

The adoption of 400mm for SLR in the Hastings and Wrights Creek catchments, creates inconsistency across the LGA. The Camden Haven and Lakes System Flood Study (2013) was adopted by Council in November 2013, and included a 900mm SLR scenario. All flood mapping and FPA requirements used since this time have been based on a 900mm scenario.

In addition, PMHC does not have any digital flood planning mapping based on the 400mm SLR scenario that can be used in planning and development related enquiries or Local Environment Plan (LEP) purposes. While the flood modelling exists for Scenario 3 in most catchments, the mapping does not.

PMHC has commenced some flood mapping work to reflect the 400mm SLR scenario, however further work and funding in the order of $100,000 will be required to complete all the necessary catchments in the LGA.

Indemnity

Legal advice was sought to ensure Council remain protected under section 733 of the Local Government Act (1993) following this policy decision. Section 733 of the Local Government Act (1993) indemnifies councils provided planning and development decisions are in accordance with the flood management plan process.

Legal advice has confirmed that Council and its staff are protected and the December 2018 decision is valid.

Flood Policy

The adopted Port Macquarie-Hastings Council Flood Policy (2018) will require an amendment as a result of the adoption of the 400mmm SLR scenario. The adopted Flood Policy is largely based on a 900mmm SLR allowance and does not reflect a 400mm SLR scenario.

The Flood Policy must now clarify the flood levels to be used for development types other than dwellings (eg. roads, bridges, rezoning’s etc.). Currently these development types with long term planning horizons (ie. long design lives), adopt the 900mm SLR scenario.

Flood projects

The adopted Hastings River Flood Study Update (2018) report is primarily based on the 900mm SLR (Scenario 1). As Council has adopted Scenario 3 (400mm SLR), the bulk of the text in the consultant’s report is now redundant. Regardless, this report has been issued as ‘Final’ and the project has been closed out.

The current Wrights Creek Floodplain Management Plan will be affected by the new SLR policy direction, however to a lesser extent. The Wrights Creek Flood Study Update (2018) report and mapping all relate to 900mm SLR (Scenario 1), however flood modelling has been done for Scenario 3. While the flood study report does not reflect the sentiments of the December 2018 Council decision, staff and OEH (now Department of Planning, Industry and Environment - DPIE) representatives believe the project could continue without revising the Flood Study report.

However, due to the delays incurred by the consultant in initially delivering the flood study and the December 2018 decision, Council has not been able to proceed to the next phase of this project in a timely manner. These delays have impacted Councils ability to deliver the project within the timeframes agreed to under the grant program (ie. the NSW Floodplain Management Program). As a result, the Wrights Creek Floodplain Management Plan project has been terminated.

On 12 December 2018, Council also resolved to proceed to the next phase of the project, the Floodplain Risk Management Study (FRMS), however due to the termination of the project, the FRMS cannot proceed at this time. The FRMS phase involves investigating ways to improve the flood problem (ie. via road raising, bridge and culvert upgrades, levees etc.) within the Wrights Creek catchment. Council must accordingly return the unspent grant funds totalling $52,000. A new grant application may be made in the future to complete the final phase of the project.

The Hibbard Floodway Investigation also focuses on a 900mm SLR scenario and as with other reports, does not reflect the sentiments of the December 2018 Council decision.

At its meeting on 15 May 2019 (Item 12.04), Council resolved to publicly exhibit the draft Hibbard Precinct Flood Study report for a minimum of 28 days. The Hibbard Precinct Flood Study (2019) was adopted on 17 July 2019 (Item 13.06) as recommended (ie. with a 900mm SLR scenario). However, if the 400mm SLR scenario remains, additional modelling and mapping will be required.

Nevertheless, a range of issues have impacted Councils ability to deliver the project within the timeframes agreed to under the grant program (ie. the NSW Floodplain Management Program). As a result, the Hibbard Floodway Investigation project has been suspended.

The main issues impacting this project include:

· This grant was initially placed on a ‘reserve list’ in December 2015 and from OEH’s perspective the grant commenced on this date, however the grant was not officially awarded until March 2016.

· The project budget was originally $50,000 based on estimates within the Hastings River Floodplain Risk Management Plan (2014). The accepted tendered price was ultimately $115,000 and while a grant variation/increase was approved by OEH, Council was advised that no further increase to funding would be approved.

· The December 2018 climate change decision delayed the tendering of the project, by diverting resource elsewhere, and when a time variation was subsequently approved by OEH (after awarding the tender), Council was advised that further increases to time would be unlikely.

· In January 2019, Council submitted a variation to extend the time by 14 months to July 2020. This was due to the complexities experienced in the floodway definition. When this variation was approved by OEH, Council was advised that no further extension to the time would be approved.

In addition to the above, the OEH grant unit have adopted new strict funding rules have that reduces the flexibility of these types of long duration and variable scope projects. Council staff have discussed various way to maintain both the Wrights Creek and Hibbard projects, however the OEH grant unit have advised Council that given the current state of project, both grants should be ended.

The Wrights Creek project was terminated following discussions with the consultant. While the Hibbard project was suspended due to the historical knowledge of the consultant, the development pressures in the Hibbard precinct and future procurement cost savings, a suspension of the project is proposed rather that a termination.

As a result of the project being suspended, Council cannot proceed with the FRMS, as resolved by Council on 12 December 2018.

Due to the development pressures in the Hibbard precinct and community expectations in the Wrights Creek catchment, it is proposed to commence the FRMS phase for both projects as soon as possible. It is expected a minimum delay of 18 months is likely. Council is required to return the unspent grant funds totalling $45,100. A new grant application may be made under the next grant funding round (opening in November 2019), however this will depend on the capacity of council considering existing projects and resources.

The North Brother Flood Study also focuses on a 900mm SLR scenario and as with other reports, does not reflect the sentiments of the December 2018 Council decision. However, both PMHC staff and OEH representatives believe the project can continue given it is predominantly a stormwater analysis of local catchment runoff.

A draft report was presented to the CE&F Sub-Committee on 28 March 2019 and the committee made a recommendation to Council that the draft report be placed on public exhibition. At its meeting on 15 May 2019, Council resolved to publicly exhibit the draft North Brother Local Catchments Flood Study report for a minimum of 28 days.

The North Brother Local Catchments Flood Study (2019) was adopted by Council on 17 July 2019 (Item 13.04) as recommended (ie. a 900mm SLR scenario). If the 400mm SLR scenario remains, elements of this study and report will need to be revisited.

Financial & Economic Implications

Finance and Insurance Companies

All finance and insurance companies undertake their own risk assessments based on a range of data sets. For instance, even though PMHC has adopted a 400mm SLR scenario, all flood studies completed to date with a 900mm SLR scenario are publicly available documents and finance and insurance companies will use this data to calculate their lending rates and insurance premiums. It is possible flood insurance premiums may increase if Council sets floor levels lower than what is indicated in flood studies, and was recommended for adoption in the flood studies.

It is important to note the Probable Maximum Flood (PMF) (sometimes described as a 10,000-year flood), sets the extent of the floodplain. This extent is much larger than the climate change scenarios referred to in this report. Thus the PMF completely encompasses all other flood events. The PMF may therefore be used by finance and insurance companies to determine properties at risk (ie. land subject to flooding).

How finance and insurance companies ultimately manage this issue is determined by each individual insurance company. Council’s knowledge on how each insurance company choses to implement the findings of the flood studies is limited, however it is beyond Council’s control.

Grant Funding

Given Council have not been able to proceed to the next phases of the Wrights Creek and Hibbard Precinct Flood Studies; Council must return $97,100 in unspent grant funds.

Future grant applications will need to be made to secure future funding to complete these projects.

Until Council has an adopted FRMP grant funding cannot be received for projects to alleviate flooding within the Wrights Creek and Hibbard precincts (ie. road/bridge upgrades, culvert upgrades, levees and the like). Should Council propose to upgrade infrastructure for flood management reasons (eg. upgrading the Herschell Street creek crossing), Council will need to fully fund these works, rather than receiving 2:1 grant funding.

This funding requirements would be in the order of $197,100 and includes;

1. completing the Wrights Creek and Hibbard Precinct Flood Studies ($97,100), and

2. $100,000 to implement the climate change (Scenario 3) mapping changes.

Options

Council could:

1) Reaffirm its decision of 12 December 2018 (items 12.12 and 12.13), and if so:

a) Generate new flood mapping for a 400mm sea level rise (SLR) plus 10% rainfall increase scenario for all Council commissioned flood studies that apply within the LGA.

b) Revise the Flood Policy to reflect the new 400mm SLR plus 10% rainfall increase policy direction.

c) Allocate $100,000 to undertake the above.

a) Reconsider the adoption of Climate Change ‘Scenario 3’ (400mm SLR plus 10% increase in rainfall) as the basis of the Flood Planning Area (FPA). If this option is chosen, ‘Scenario 1’ (900mm SLR plus 10% increase in rainfall) is recommended to be adopted;

b) Make further applications for $97,100 funding assistance to complete the Wrights Creek and Hibbard Precinct Flood Studies.

This report recommends that option 2 be adopted.

Attachments

Nil

Donation of Glasshouse Vouchers to Endeavour House Fundraiser on weekend of 26/10/19	$200.00
Donation of Glasshouse Voucher to Hastings Primary School Fete on 26/10/19	$50.00
Donation of Glasshouse Vouchers to PMQ Astronomical Society’s fundraiser & film night on 02/11/19	$200.00
2020 Hastings Education Fund Gold Sponsorship	$1,000
Remembrance Day Wreaths for Services in PMQ and Wauchope	$135.00
	$1,585.00

*Expense Type*	*Refund Basis*	*Limit*
Travel – Air	Actual	Nil
Travel – Rail	Actual	Nil
Travel – Taxi	Actual	Nil
Travel – Bus	Actual	Nil
Travel – Parking	Actual	$40.00 per day

Original Budget as at 1 July 2019	Shortfall	($975,198)
Plus adjustments:
July Review	Balanced	$0
August Review	Surplus	$125,477
September Review	Surplus	$14,783
October Review	Balanced	$0
Forecast Budget Position for 30 June 2020	Shortfall	($834,938)

Description	Notes	Funding Source	Amount
Grant Funding	1	Grants	$206,252
Reserve Movements	2	Reserve	$875,000
Council Resolutions	3	Revenue	$35,291
Budget Variance Requests	4	Revenue	$847,639
Total			$1,964,182

Council Project	Grant Provider	Grant Funding	Other Funding*	Comment
Bushfire Control - Hazard Reduction Grant	RFS	$206,252	$0	RFS funding to undertake hazard reduction burning in the LGA
Total Grant Funding		$206,252

Transfer from	Transfer To	Amount	Comments
Waste Reserve	Dunbogan Waste Depot Gas Investigation	$35,000	Transfer from Waste Reserve for the gas investigations at the Dunbogan Waste Depot
Aerodrome Reserve	PM Airport - Second Carpark Exit	$140,000	Funding for second exit lane and barrier
Waste Reserve	Section 88 Waste Levy	$700,000	Increase in budget for payment of waste levy payable under the Protection of the Environment Act 1997 to bring the budget in line with previous expenditure levels
Reserve Movements		$875,000

Project Name	Funding Source	Amount	Comments
Flynns Beach Seawall	Reserve	$100,183	Additional Scope to finalise works
Property Purchase Investigations	Reserve	$40,000	Investigations into speculative land purchases
The Coastal Walk	s7.11 / Reserve	$647,456	Increase in scope and project complexities
Kangaroo Park North Shore	Reserve	$60,000	Costs associated with obtaining DA’s for residential blocks owned by Council
Total Approved Budget Variations		$847,639

General Fund	121,359,773
Waste Fund	18,073,339
Water Fund	105,753,012
Sewer Fund	51,193,395
Sanctuary Springs Fund	38,726
Broadwater	1,477,563
	297,895,808

Lease Type	No. of Leases	Income ex GST
Council as lessee	67	$ 44,000
Airport lease	31	$ 537,000
Commercial lease	35	$ 393,000
Community lease	73	$ 31,000
Outdoor dining and trading	58	$ 112,000
Residential lease	8	$ 100,000
Temporary licences	28	$ 13,000
Total number of leases and rental income	300	$ 1,231,000

Application	Property	Extent of Variation
DA2019 - 367.1	16 Grandview Parade, Port Macquarie	2.9%
DA2019 - 471.1	17 The Boulevarde, Dunbogan	1.5%
DA2019 - 380.1	46 Manuka Parkway, King Creek	4.8%

Applicant	Project	Project cost	Amount Requested	Recommended Grant
P. Davies	External paintwork and preparation to prevent further deterioration of timber	$12,500	$3,000	$3,000
Royal Kew Hotel	Reinstate timber decorative frieze in the hallway on the ground level, restoration of the timber staircase including replacement of broken balusters, fixing of loose elements, staining, removing carpet and stairboards and replacing with new feature stained timber stairs	$10,100	$3,000	$3,000
W. Lang	Exterior repainting of three heritage listed cottages including the original cottage, old post office and external toilet block	$23,760	$3,000	$3,000

Submission - Draft Community Participation Plan			Issue
1.	Blair Maxwell		The Community Participation Plan does not identify how and when Council’s Community-Council Action Teams can participate in Council planning decisions. Requesting that CCATs be given prior notice of relevant developments and that all CCATs should be advised of any plans and policies being placed on exhibition. CCATs are now a vital tool in community participation in the operations of Council and must not be left off the plan.
1.	*Response/* *Comment*:	Noted. The CPP outlines the minimum level of participation across all planning documents. As the role of the CCATs develops, Council will work with the CCATs to identify the most effective way to communicate relevant opportunities for feedback to the CCATs.
2.	Philip Lloyd		Emphasises the importance of Council following and implementing the Participation Plan and involving community in the planning process up-front rather than at the end of the process.
2.	*Response/* *Comment*	Noted.
3.	Michelle Love		In section 3.4.1 of the draft Plan, it is not clear for those making submissions that the consent authority is limited to only consider matters relevant to the development proposal as set out in the relevant planning legislation. It is requested that this information be included in this section.
3.	*Response/* *Comment*	Noted and Plan amended as requested. Amended wording now included “The consent authority is limited to only consider matters relevant to the development proposal as set out in the relevant planning legislation.”

	Financial Year
	2016/17	2017/18	2018/19
	KW
Street Lighting	3,357,082	3,153,638	2,832,149
Airport	274,634	276,864	253,235
General Fund	4,228,493	3,843,915	5,688,104
Sewer Fund	6,179,350	5,733,029	8,001,484
Water Fund	6,068,453	5,963,031	5,821,139