Agenda of Ordinary Council - Thursday, 16 February 2023

UNCONFIRMED MINUTES

Ordinary Council Meeting

08/12/2022

PRESENT

Members:

Mayor Peta Pinson (Mayor)

Councillor Adam Roberts (Deputy Mayor)

Councillor Lauren Edwards

Councillor Sharon Griffiths

Councillor Lisa Intemann

Councillor Nik Lipovac

Councillor Danielle Maltman

Councillor Rachel Sheppard

Councillor Josh Slade

Other Attendees:

Chief Executive Officer (Dr Clare Allen)

Director Business and Performance (Keith Hentschke)

Director Community, Planning and Environment (Melissa Watkins)

Director Community Infrastructure (Robert Fish)

Director Community Utilities (Jeffery Sharp)

Group Manager Governance (Michael Ferguson)

Governance Officer (Tania Ellis)

The meeting opened at 10:00am.

01 ACKNOWLEDGEMENT OF COUNTRY

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

02 REMOTE ATTENDANCE AT MEETING

Nil.

03 LOCAL GOVERNMENT PRAYER

Mr Eden McGregor from the Hope Community Church delivered the Local Government Prayer.

04 APOLOGIES

Nil

05 CONFIRMATION OF MINUTES

Resolved: Sheppard/Lipovac

That the Minutes of the Ordinary Council Meeting held on 17 November 2022 be confirmed.

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

06 DISCLOSURES OF INTEREST

Councillor Lipovac declared a Non-Pecuniary, Less Than Significant interest in Item 10.09 Business Rating Model Independent Review, the reason being that Councillor Lipovac meets with local business owners in the Port Macquarie CBD and the Hastings, Macleay and Nambucca Valleys. Councillor Lipovac intends to remain in the meeting, participate and vote in the matter as this perceived conflict will not influence his decision making in the matter.

Councillor Slade declared a Non-Pecuniary, Less than significant in Item 10.09 Business Rating Model Independent Review. The reason being immediate family owns property and businesses in the Wauchope CBD. Councillor Slade intends to remain in the meeting, participate and vote in the matter as this perceived conflict will not influence his decision making in the matter.

Councillor Maltman declared a Non-Pecuniary, Less than significant interest in Item 13.04 Lake Cathie Natural Resource Management Monthly Update November 2022. The reason being that Councillor Maltman is a non-financial life member and former President of the community organisation Revive Lake Cathie Incorporated. Councillor Maltman intends to remain in the meeting, participate and vote in the matter as this perceived conflict will not influence her decision making in the matter.

07 MAYORAL MINUTE

07.01 Recognition of Service - Mark "Strawny" Strachan OAM

Resolved: Pinson

That Council congratulate and recognise the contribution of 33 years to the local media industry of Mark “Strawny” Strachan OAM and wish him well on his retirement.

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

08 CONFIDENTIAL CORRESPONDENCE TO ORDINARY COUNCIL MEETING

NIL

SUSPENSION OF STANDING ORDERS

RESOLVED: Slade/Sheppard

That Standing Orders be suspended to allow Items, 10.01, 10.02, 10.05, 10.06, 10.07, 10.10, 10.11, 10.12, 11.02, 11.03, 13.08 and 13.09 to be brought forward and considered next.

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

09 ITEMS TO BE DEALT WITH BY EXCEPTION

Resolved: Sheppard/Lipovac

That items 10.01, 10.02, 10.05, 10.06, 10.07, 10.10, 10.11, 10.12, 11.02, 11.03, 13.08 and 13.09 be considered as a block resolution.

That all recommendations listed in the block resolution be adopted by Council.

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

10.01 Mayoral Discretionary Fund Allocations - 3 to 23 November 2022

BLOCK RESOLVED: Sheppard /Lipovac

That Council note that there have been no Mayoral Discretionary Fund allocations for the period 3 to 23 November 2022 inclusive.

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

10.02 Status of Reports From Council Resolutions

BLOCK Resolved: Sheppard/Lipovac

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

10.05 Legislative Compliance 2021-2022

Block Resolved: Sheppard/Lipovac

That Council note the Legislative Compliance 2021 - 2022 report.

10.06 Code of Conduct Complaint Statistics

block Resolved: Sheppard/Lipovac

That Council note the Code of Conduct Complaint Statistics for the period 1 September 2021 to 31 August 2022.

10.07 Policy Review - Community Leasing and Licensing Policy

Block Resolved: Sheppard/Lipovac

That Council:

1. Endorse the draft Community Leasing and Licensing Policy Place for the purpose of public exhibition from 12 December 2022 to 28 February 2023

2. Note that a further report will be brought to the March 2023 Council meeting, detailing the submissions received from the public during the exhibition period.

10.10 Monthly Budget Review - November 2022

block Resolved: Sheppard/Lipovac

That Council:

1. Adopt the adjustments in the “November 2022 Adjustments” section of the Monthly Budget Review – November 2022 report and associated attachment.

2. Amend the 2022-2023 Operational Plan to include all budget adjustments approved in this report.

10.11 Investments - November 2022

block Resolved: Sheppard/Lipovac

That Council note the Investment Report for the month of November 2022.

10.12 Payment of Water Fund and Sewer Fund Dividend for the Year 2021-2022

BLOCK Resolved: Sheppard/Lipovac

That Council:

1. Note that Council has been deemed compliant with the new Regulatory and Assurance Framework for Local Water Utilities

2. Authorise the application to the NSW Government for approval to pay a dividend of $954,315 to the General Fund from the surplus in Water Supply operations for the 2021-2022 financial year.

3. Authorise the payment of $106,035 for tax equivalents to the General Fund from the Water Supply operations for the 2021-2022 financial year.

4. Authorise the application to the NSW Government for approval to pay a dividend of $910,818 to the General Fund from the surplus in the Sewerage Fund for the 2021-2022 financial year.

5. Authorise the payment of $101,202 for tax equivalents to the General Fund from the Sewerage Fund for the 2021-2022 financial year.

6. Note that if successful in its application, a separate report will be brought back to Council outlining the proposed expenditure of the dividend.

11.02 Draft Port Macquarie Hastings Council Interpretation Policy and Guidelines

Block Resolved: Sheppard/Lipovac

That Council:

1. Endorse the draft Port Macquarie Hastings Council Interpretation Policy and Guidelines for the purposes of public exhibition for a period of not less than 28 days

2. Note that a further report will be presented to Council for consideration following the public exhibition period and consideration of any submissions.

11.03 Recreation Action Plan Report on Public Exhibition

block Resolved: Sheppard/Lipovac

That Council:

1. Note the information contained in the report

2. Note that a further report detailing the establishment of a Sporting Infrastructure and Priorities Working Group will be presented to the February 2023 Ordinary Council meeting as resolved by Council in October 2022

13.08 Policy Review - Planning Proposal Policy

block Resolved: Sheppard/Lipovac

That Council:

1. Publicly exhibit the draft Planning Proposal Policy for a period of not less than 28 days.

2. Note that a further report will be tabled at a meeting of Council in April 2023, detailing any submissions received from the public during the exhibition period.

13.09 Policy Review of Conflict of Interest - Council-related Development Aplications. Post Exhibition Report.

BLOck Resolved: Sheppard/Lipovac

That Council;

1. Note that no submissions were received in respect of the draft Policy.

2. Adopt the amendments to the Conflict of Interest Policy - Council-Related Development Applications.

10.03 Notice of Motion - Local Government Remuneration Annual Review 2023

MOVED: Pinson/Roberts

That Council:

1. Request the Chief Executive Officer make a submission to the Local Government Remuneration Tribunal requesting that amendments be made to the criteria regarding the Regional Strategic Area that include:

a) Removal of criteria that the residential population will typically have a residential population above 200,000.

b) Removal of criteria that there be a proximity to Sydney which generates economic opportunities.

2. Request the Chief Executive Officer make a submission to the Local Government Remuneration Tribunal requesting that Port Macquarie-Hastings Council be reclassified as a Regional Strategic Area.

lost: 4/5

For: Maltman, Pinson, Roberts and Slade

Against: Edwards, Griffiths, Intemann, Lipovac and Sheppard

10.04 Upcoming State Election Funding Priorities

RESOLVED: Intemann/Griffiths

That Council:

1. Endorse the priority projects that are recommended and included in the table below for external funding through potential State Government election commitments.

Priority	Electorate	Township	Project	Cost Estimate	Details
1A	Oxley	Wauchope	Hastings Regional Sports Fields	$42 million	Construction of: • Touch football fields. • Cricket fields - with both turf and synthetic pitches. • Multi-purpose sports fields. • Field lighting, irrigation and sports field drainage. • A grandstand facility including change rooms, accessible amenities, canteen and storerooms. • Multiple car park areas for up to 500 vehicles. • Bus access and pick-up/drop-off zones.
Or 1B	Oxley	Wauchope	Hastings Regional Sports Fields Stage 1	$20 million	Construction of: • Cricket fields, including a junior cricket oval. • 1 car park. • Shared footpath.
2	Port Macquarie	Port Macquarie	Lake Road Upgrades	$20 - 25 million	Construction of the following stages: • Duplication of Lake Road from Ocean Drive to Chestnut Road, including: • Intersection capacity and safety improvements. • Path linkage. • Signalisation of Lake Road at Jindalee Road. Concept design completed for duplication project. Adjustment of National Park boundary and development consent due to coastal SEPP incursions required. Signalisation project design undertaken. Works Authorisation Deed required via TfNSW and land acquisitions.
3	Oxley / Port Macquarie	Comboyne	Lorne Road - sealing	$26.7 million	Construction and bitumen sealing of the remaining 13.5km of gravel road. Work currently funded via Council and Federal Government to seal to approximately Koppin Yarratt Road, with detailed design progressing. Concept design under way for the remaining section, with an application for $26.7 million made under the NSW Fixing Country Roads grant (awaiting outcome).
4	Port Macquarie	Thrumster	Thrumster Sporting Complex	$15 million	Construction of: • New premier multi-use sporting field. • Six x 5-a-side synthetic soccer pitches. • Clubhouse, toilets, change rooms, canteen, storerooms • Car parking, access road, footpath. Application for $15 million made via NSW Accelerated Infrastructure Fund (awaiting outcome), with a $5.5 million PMHC co-contribution.
5	Port Macquarie	Port Macquarie	Hasting River Drive Duplication (Hughes to Boundary Street) and Boundary Street Upgrades	$37.5 million	Hastings River Duplication construction of: • Dual carriageway of 540m of duplication of HRD • 1 in 20-year flood immunity to match existing road surface Boundary Street Upgrades construction of: • Duplication of Boundary Street to airport and associated business park • Pavement and drainage improvements • Future proofing 1 in 20-year flood immunity Protect will improve access, connectivity, reduce maintenance costs, increase amenity and connectivity and enhance economic opportunities for business and tourism.
6	Port Macquarie	Lake Cathie	Ocean Drive Corridor Upgrades as per the MR538 and MR600 Corridor Strategy	$18 million for Stage Project 15. $19 million for Project 16.	• Construction of Project 15 - Ocean Drive: Ernest Street to Miala Street: Ocean Drive upgrade between Ernest Street and Miala Street (median divided two-lane cross section with bicycle lanes and various intersection upgrades) • Construction of Project 16 Ocean Drive / Woolworths Access (Lake Cathie): Upgrade to traffic signals Concept designs are complete. Detailed designs and environmental assessments would be required to progress to a point of being construction ready.
7	Oxley	Yippin Creek Wauchope	Beechwood Road Upgrade, including Flood Free Access	$6 million	Construction of Beechwood Road upgrade between Yippin Creek Road and Waugh Street, providing for: • Flood free access to unlock area for housing development. • Replacement of ageing timber bridge • Intersection and alignment improvements Received $5 million via Australian Government Bridge Renewal Program, with PMHC providing a $400k co-contribution. Application made for $6 million under the NSW Government Accelerated Infrastructure Fund (awaiting outcome) to enable project to progress.
8	Port Macquarie	Port Macquarie	Ocean Drive Duplication	$10 million	Construction of: • Duplication of Ocean Drive from 2 to 4 lanes between Matthew Flinders Drive and Greenmeadows Drive. • Five intersection upgrades. • Utility upgrades. • Shared path. • Fauna provisions. Contract for construction awarded with work recently commenced. $111 million total project cost estimate, with a $60 million NSW Government grant, $8.24 million from PMHC water reserve & $5.5 million PMHC reserves committed to date. Additional $15.5 million required to complete construction, with a request for funding made to the NSW Government, awaiting outcome.
9	Port Macquarie	Port Macquarie	Port Macquarie Aquatic Centre	$30 million	Possible elements to include in the final design: • Outdoor 50m pool with 10 lanes. • A heated indoor 25m pool. • Outdoor splash pad, leisure pool and slide. • Café or kiosk, amenities, administration building and plant rooms.
10	Port Macquarie	Lake Cathie / Bonny Hills	Rainbow Beach Sporting Fields Stage 2	$3 million	Construction of amenities, change rooms, toilets and additional courts to compliment the recently completed stage 1.

2. That the list of priority projects be made available to all Port Macquarie and Oxley electorate State election candidates.

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

Item 10.05 Legislative Compliance 2021-2022, has been addressed previously within the meeting.

Item 10.06 Code of Conduct Complaint Statistics, has been addressed previously within the meeting.

Item 10.07 Policy Review - Community Leasing and Licensing Policy, has been addressed previously within the meeting.

10.08 Improvement Plan 2022-2026 - General Fund Operating Performance.

Resolved: Pinson/Griffiths

That Council:

1. Note the update provided in this Improvement Plan 2022-2026 – General Fund Operating Performance report.

2. Request the Chief Executive Officer to provide a briefing in the first quarter of 2023 to step through each initiative in the improvement plan.

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

10.09 Business Rating Model - Independent Review

Councillor Lipovac declared a Non-Pecuniary, Less Than Significant Interest in Item 10.09 Business Rating Model Independent Review, the reason being that Councillor Lipovac meets with local business owners in the Port Macquarie CBD and the Hastings, Macleay and Nambucca Valleys. Councillor Lipovac remained in the meeting, participated and voted in the matter as this perceived conflict will not influence his decision making in the matter.

Councillor Slade declared a Non-Pecuniary, Less than significant in Item 10.09 Business Rating Model Independent Review. The reason being immediate family owns property and businesses in the Wauchope CBD. Councillor Slade remained in the meeting, participated and voted in the matter as this perceived conflict will not influence his decision making in the matter.

MOTION: Roberts/Pinson

That Council:

1. Note the Independent Review Report and the stakeholder and community engagement undertaken on the Business Rating Model.

2. Request the CEO prepare a draft 2023-2024 Operational Plan, Long Term Financial Plan and Revenue Policy with the removal of the Town Centre Master Plan (TCMP) component of the Port Macquarie CBD ordinary business rate, with the reports including alternate financial arrangements to deal with options relating to;

a) Paying out the existing Council loan funding TCMP initiatives

b) Ongoing maintenance of the Port Macquarie CBD

c) Delivery of any outstanding projects funded by the TCMP reserve

lost: 4/5

For: Maltman, Pinson, Roberts and Slade

Against: Edwards, Griffiths, Intemann, Lipovac and Sheppard

THE MOTION ON BEING PUT WAS LOST

RESOLVED: Sheppard/Griffiths

That Council:

1. Note the findings of the independent review and stakeholder and community engagement undertaken in relation to Council’s current business rating model as outlined in this Business Rating Model - Independent Review report.

2. Thank stakeholders and members of the community who provided feedback during the Business Rating Model - Independent Review engagement period.

3. With regard to the Port Macquarie CBD ordinary business rate, endorse a 32% reduction in the Town Centre Master Plan (TCMP) component of the Port Macquarie CBD ordinary business rate through to 2027 and a 45% reduction thereafter, and request the Chief Executive Officer prepare a draft 2023-2024 Operational Plan, Long Term Financial Plan and Revenue Policy in line with the corresponding reduction.

4. Note that the 32% reduction in the TCMP component of the Port Macquarie CBD ordinary business rate as referred to in Recommendation 3 above, will provide significant relief to business rate payers in the Port Macquarie CBD while retaining existing maintenance service standards and funding for existing TCMP related loan repayments through to 2027.

5. Request the Chief Executive Officer develop a communications plan to address the stakeholder concerns identified in the Business Rating Model - Independent Review report with regard to transparency, access to information and governance regarding the Town Centre Master Plan (TCMP) component of the Port Macquarie CBD ordinary business rate.

6. With regard to the potential future options for the Port Macquarie CBD ordinary business rate and ordinary business rates levied in the Wauchope and Laurieton town centres as part of the Defined Urban Centre business rate, request the Chief Executive Officer give further consideration to funding options and associated management structures in conjunction with future development and / or reviews of the Port Macquarie, Wauchope and Laurieton town centre master plans respectively, with such considerations to be developed in consultation with stakeholders and the community.

7. Request the Chief Executive Officer provide a further report to the May 2023 Council Meeting detailing a possible governance structure for the establishment and operation of a Working Group or Sub- Committee that would provide for the following:

(a) Representation/Membership from a cross section of the community and stakeholders and tenure of members

(b) Transparent decision making

(d) Clear communications on purpose, responsibilities and recommendations to Council

(e) Engagement protocols

(f) Clarity of roles and responsibilities in the development, prioritisation and implementation of a Central Business District (CBD) Improvement Plan

carried: 5/4

For: Edwards, Griffiths, Intemann, Lipovac and Sheppard

Against: Maltman, Pinson, Roberts and Slade

Item 10.10 Monthly Budget Review - November 2022, has been addressed previously within the meeting.

Item 10.11 Investments - November 2022, has been addressed previously within the meeting.

Item 10.12 Payment of Water Fund and Sewer Fund Dividend for the Year 2021-2022, has been addressed previously within the meeting.

11.01 Recommended Items from Mayor's Sporting Fund Sub-Committee Meeting November 2022

RESOLVED: Lipovac/Pinson

That Council:

1. Adopt the name “Port Macquarie-Hastings Sporting Fund Sub-Committee” in preference to the “Mayor’s Sporting Fund Sub-Committee”.

2. Endorse the Sub-Committee recommendation that Scott Hodgson receive $250 for representation in State Rugby.

3. Endorse the Sub-Committee recommendation that Flynn Daly receive $750 for representation in Australian All Schools Track and Field Championships in Adelaide in December 2022.

4. Accept the resignations of members Sue Reid and Jo-Anne Border.

5. Note the eight (8) applications received for membership to the Sub-Committee and appoint the following applicants:

· Cathy Walsh

· Clayton Pickworth

· Troy Highlands

· David Barnes

· Claudia Buckby

· Simon Thresher

· Ben Ismay

· Belinda Gaunt

6. Review the Charter at the next Meeting and update it to reflect the amended membership.

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

Item 11.02 Draft Port Macquarie Hastings Council Interpretation Policy & Guidelines, has been addressed previously within the meeting.

Item 11.03 Recreation Action Plan Report on Public Exhibition, has been addressed previously within the meeting.

12.01 Notice of Motion - Alternative Routes in the Health and Education Precinct

RESOLVED: Intemann/Roberts

That Council note the significant congestion of Lake Road and Wrights Road/Oxley Highway, and

1. Prioritise actions to complete negotiations with NSW National Parks and Wildlife Service and NSW Crown Lands regarding land in the vicinity and westward of Lake Road and Ocean Drive.

2. Note the potential opportunity to reduce congestion via alternative routes through the Industrial Area to the Health and Education Precinct.

3. Request the Chief Executive Officer provide a report to the April 2023 Ordinary Council Meeting on the status of progress in the matters raised in points 1 and 2 above.

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

12.02 Notice of Motion - Assets Roads, Bridges and Paths

Resolved: Griffiths/Lipovac

That Council request the Chief Executive Officer provide an overview of transport assets (roads, bridges and paths) within the Port Macquarie-Hastings Local Government Area to support consideration of the 2023-2024 budget by Council as part of the annual Operational Plan development cycle, including for each sub category within transport assets:

1. The value and length of the assets

2. A summary of overall asset condition and breakdown of the infrastructure backlog

3. Renewal expenditure from past and current years as may be readily available

4. Planned renewal expenditure for 2023-2024 and within the Long Term

Financial Plan

5. A summation of what will be achieved via planned expenditure in 2023-2024 and the Long Term Financial Plan

6. Advice on the extent at which backlog will be addressed via that planned expenditure and options that may exist for how Council distributes its infrastructure spend.

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

12.03 Notice of Motion - Council's Long Term Energy Strategy

Resolved: Edwards/Sheppard

That Council:

1. Note Port Macquarie Hastings Council’s Long Term Energy Strategy as adopted in 2017, and points 1 and 2 of the Strategy which state that Council aims to source 100% of its electricity from renewable sources by 2027, and to implement one or more mid-scale solar projects when this technology becomes cost efficient to install and operate in the medium to long term.

2. Request the Chief Executive Officer provide a report to Council, no later than the March 2023 Ordinary Council Meeting, on suitable Council owned land and asset sites that could accommodate renewable energy projects such as a mid-scale solar plant and/or community battery projects.

carried: 5/4

For: Edwards, Griffiths, Intemann, Lipovac and Sheppard

Against: Maltman, Pinson, Roberts and Slade

12.04 Port Macquarie Airport - Pilot Training and Aircraft Noise - Fly Neighbourly Agreement Trial - Six Month Review

Resolved: Intemann/Roberts

That Council:

1. Note the information provided in this Port Macquarie Airport - Pilot Training and Aircraft Noise - Fly Neighbourly Agreement Trial - Six Month Review report;

2. Note that a further report will be presented at the Ordinary Council Meeting to be held in June 2023.

carried: 8/1

For: Edwards, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Griffiths

13.01 Notice of Motion - Friends of Camden Haven Headland Volunteer Group

MOVED: Pinson/Roberts

That Council:

1. Resolve to commence the process for the establishment a Friends of Camden Haven Headland volunteer group to assist in the enhancement of the Council Managed Crown Reserve at the Camden Haven Headland.

2. Request the Chief Executive Officer to provide a report to the February 2023 Ordinary Council meeting outlining the steps involved in establishing this volunteer group.

AMENDMENT: Sheppard/Edwards

That Council:

1. Note the request to commence the process for the establishment of a Friends of Camden Haven Headland volunteer group to assist in the enhancement of the Council Managed Crown Reserve at the Camden Haven Headland.

2. Note that a draft Volunteer Policy is currently under development by Council, and request the Chief Executive Officer to give consideration to the inclusion of a project for the development of a ‘Friends of…’ community volunteer framework, as part of the development of the draft 2023-2024 Operational Plan.

3. In consideration of point 2 above, request the Chief Executive Officer to undertake engagement with existing volunteer groups working on the Camden Haven Headland, nearby residents and the Camden Haven community in considering the “Friends of” volunteer framework.

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

THE AMENDMENT WAS PUT AND CARRIED

Councillor Maltman left the meeting, the time being 12:06pm.

Councillor Maltman returned to the meeting, the time being 12:08pm.

THE AMENDMENT THEN BECAME THE MOTION AND ON BEING PUT WAS CARRIED

RESOLVED: Sheppard/Edwards

That Council:

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

13.02 Notice of Motion - Significant Koala Habitat within Private Native Forestry

MOVED: Edwards/Sheppard

That Council:

1. Note the Port Macquarie Hastings Local Government Area Biodiversity Management Strategy acknowledges that some 15,330 hectares of the private native forestry licences issued were located on Preferred Koala Habitat.

2. Note the NSW Koala Strategy and specifically Pillar 1 which affords over $20 million to work with private landholders with high-quality koala habitat in populations for immediate investment will be supported to permanently conserve their koala habitat. Support will be targeted towards stronghold areas and will occur via two programs administered by the Biodiversity Conservation Trust: Conservation Partners Program, and in-perpetuity conservation agreements with annual payments.

3. Request the Chief Executive Officer to write to all Private Native Forestry licence holders in the Port Macquarie Hastings Local Government Area that Council has received notification of to inform them of the significant koala habitat understood to be within Private Native Forestry approved landscapes and of the opportunity available to apply to make such an agreement where the land holder can receive payment to protect koala habitat as outlined in point 2 above.

THE MOTION WAS WITHDRAWN

Adjourn meeting

Resolved: Pinson/Roberts

The Ordinary Council Meeting adjourned at 12:47pm

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

Resume meeting

The Ordinary Council Meeting resumed at 13:04pm

13.03 Notice of Motion - Southern Breakwall Upgrade Project

MOVED: Intemann/Griffiths

That Council:

1. Supports in principle the proposed Port Macquarie Southern Breakwall Upgrade Project, to be completed in 2023 and fully funded by the NSW Government, the primary purpose being to maintain this critical maritime asset and improve the public amenity of the Breakwall surrounds, noting its many other benefits as a tourist attraction as well as supporting economic activity and community health and wellbeing.

2. Notes the significant community concerns expressed, including the need for the project, loss of items of cultural significance, and perceived risk from the works to the point and surf break, and that Council is awaiting further information and a requested meeting with Transport for NSW.

AMENDMENT: Pinson/Roberts

That Council:

1. Note the resolution of Council at the Ordinary Council Meeting held on 17 November 2022:

RESOLVED: Roberts/Pinson

That Council:

1. Note the information provided in this report.

2. Request the Chief Executive Officer, write to the Hon Premier of New South Wales, Dominic Perrottet, advising of Council’s significant concerns in relation to the Port Macquarie Southern Breakwall project, due to the need for further information and to address significant concerns expressed by the community, and request the NSW Government:

a. undertake a thorough independent review of the community engagement process and the engineering and arborist reports.

b. comprehensively address in writing, the numerous questions raised by the Port Macquarie Hastings community, that have been previously provided to the State Member for Port Macquarie, Leslie Williams.

c. request Transport for NSW to urgently provide to council the high resolution multi-beam hydro survey and point cloud-drone survey which was used to produce cross sectional 3d model of the southern breakwall.

CARRIED: 7/2

FOR: Edwards, Griffiths, Intemann, Maltman, Pinson, Roberts and Slade

AGAINST: Lipovac and Sheppard

2. Note that no further information from Transport for NSW or The Hon Leslie Williams MP has been provided.

3. Note that the current proposal is a project of Transport for NSW and supported by Member for Port Macquarie, The Hon Leslie Williams MP.

4. Note the significant community concerns expressed, including the loss of cultural significance which includes removal of painted memorial rocks, felling of mature trees which include mature Norfolk Pines and perceived risks from the planned work to the point of the Breakwall which could destroy the world renowned surf break.

5. Support a widening of the Breakwall footpath via a reviewed concept design and detailed design following community engagement and consultation.

6. Note the tabled petition of 1350 signatures collected in opposition to the current State Government proposal with an additional 1500 signatures captured in an online petition unable to be tabled due to Council’s petition policy.

7. Request the Chief Executive Officer to place the interview between Damian King and Angus Gordon on Council’s website as a matter of public interest.

8. Request the Chief Executive Officer to provide a copy of the interview between Damian King and Angus Gordon to The Hon. Leslie Williams MP and Transport for NSW.

PROCEDURAL MOTION:

RESOLVED: Edwards/Griffiths

That the amendment be put.

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

THE AMENDMENT ON BEING PUT WAS LOST

lost: 4/5

For: Maltman, Pinson, Roberts and Slade

Against: Edwards, Griffiths, Intemann, Lipovac and Sheppard

THE MOTION WAS PUT AND CARRIED

RESOLVED: Intemann/Griffiths

That Council:

CARRIED: 5/4

FOR: Edwards, Griffiths, Intemann, Lipovac and Sheppard

AGAINST: Maltman, Pinson, Roberts and Slade

13.04 Lake Cathie Natural Resource ManAgement Monthly Update December 2022

Councillor Maltman declared a Non-Pecuniary, Less than significant in Item 13.04 Lake Cathie Natural Resource Management Monthly Update November 2022. The reason being that Councillor Maltman is a non-financial life member and former President of the community organisation Revive Lake Cathie Incorporated. Councillor Maltman remained in the meeting, participated and voted in the matter as this perceived conflict will not influence her decision making in the matter.

Resolved: Roberts/Slade

That Council note the progress of natural resource management projects / initiatives within the Lake Cathie, Lake Innes and Cathie Creek waterways and progression of the Coastal Management Program.

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

13.05 Post Exhibition Report - Planning Proposal PP-2022-981 11 and 33 Mumford Street, Port Macquarie

RESOLVED: Pinson/Roberts

That Council:

1. Note the submissions received during public exhibition of the Planning Proposal PP-2022-981 11 and 33 Mumford Street, Port Macquarie.

2. Note the Gateway Determination (Attachment B) granted by the Department of Planning and Environment on 15 May 2022.

3. Note implementation of the Employment Zones Reform Package in December 2022, and translation of zone B5 Business Development to E3 Productivity Support under the reforms.

4. As a result of the consideration of submissions, and Government agency responses:

a) endorse the Planning Proposal as publicly exhibited (Attachment C) under section 3.35 of the Environmental Planning & Assessment Act 1979 in relation to 11 and 33 Mumford Street, Port Macquarie, and

b) take the necessary steps under Section 3.36 of the Environmental Planning and Assessment Act 1979 to finalise Port Macquarie-Hastings Local Environmental Plan 2011 (Map Amendment) to give effect to the revised Planning Proposal.

5. Delegate authority to the Director Community, Planning and Environment to make inconsequential or minor administrative amendments to the Planning Proposal prior to forwarding it to the Department for finalisation.

6. Notify Council’s decision to all persons who lodged a submission.

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

13.06 Post Exhibition Report - Planning Proposal PP-2021-6399 Blackwood Street, Port Macquarie.

Resolved: Sheppard/Griffiths

That Council:

1. Note the submissions received during public exhibition of the Planning Proposal (PP) - Blackwood Street, Port Macquarie.

2. Note the Gateway Alteration request (Attachment C) submitted to the Department of Planning and Environment on 17 November 2022.

3. Note the updated provisional Koala Plan of Management prepared by the proponent and submitted 22 November 2022 (Attachment B).

4. Note the additional capacity demand (up to 72+ equivalent persons) on the Port Macquarie Waste Water Treatment Plant, which is known and modelled demand consistent with Council’s decision at the Ordinary Council Meeting held on 18 August 2022.

5. Note that under the NSW Government Local Environmental Plan Making Guideline (September 2022), Council must comply with the timeframes set by the NSW Government for completing the Planning Proposal.

6. As a result of the consideration of submissions, and Government agency responses:

a) endorse the updated provisional Koala Plan of Management, and forward the plan to the Minister for Planning and Minister for Homes for approval;

b) endorse the Planning Proposal as publicly exhibited (Attachment D) under section 3.35 of the Environmental Planning & Assessment Act 1979 in relation to Lot 497 DP1258597, Blackwood Street, and

c) take the necessary steps under Section 3.36 of the Environmental Planning and Assessment Act 1979 to finalise Port Macquarie-Hastings Local Environmental Plan 2011 (Map Amendment) to give effect to the revised Planning Proposal, and

d) request the Minister as the LPMA for the Planning Proposal, to make the plan.

7. Delegate authority to the Chief Executive Officer to make inconsequential or minor administrative amendments to the Planning Proposal prior to forwarding it to the Department for finalisation.

8. Notify Council’s decision to all persons who made a submission.

carried: 7/2

For: Edwards, Griffiths, Lipovac, Maltman, Roberts, Sheppard and Slade

Against: Intemann and Pinson

13.07 Policy Review - Climate Change Response Policy - post public exhibition

Resolved: Sheppard/Intemann

That Council:

Note the submissions and feedback relating to the draft Climate Change Response Policy received during public exhibition period.
Adopt the revised draft Climate Change Response Policy to include minor amendment to, 1. Objective, Point 2, to insert the word “towards” before the words “net zero”.
Thank those people who provided feedback during public exhibition period and advise on the outcome of Council’s consideration of this matter.
Incorporate climate adaptation and resilience strategies in the development of the draft Sustainability Strategy (currently under development), with a view to expedite progress to action planning and implementation.
Request the Chief Executive Officer to provide a workshop with Councillors to work through the structure and focus of the draft Sustainability Strategy, in the first quarter 2023.

carried: 5/4

For: Edwards, Griffiths, Intemann, Lipovac and Sheppard

Against: Maltman, Pinson, Roberts and Slade

Item 13.08 Policy Review - Planning Proposal Policy, has been addressed previously within the meeting.

Item 13.09 Policy Review of Conflict of Interest - Council-related Development Applications. Post Exhibition Report., has been addressed previously within the meeting.

Councillor Slade left the meeting, the time being 03:01pm.

Councillor Lipovac left the meeting, the time being 03:01pm.

Councillor Maltman left the meeting, the time being 03:01pm.

Councillor Slade returned to the meeting, the time being 03:02pm.

Councillor Maltman returned to the meeting, the time being 03:03pm.

13.10 Environmental Land Rezoning - Council Owned Lands

RESOLVED: Intemann/Griffiths

That Council:

1. Endorse the draft Planning Proposal (Attachment 1), for environmental lands prepared under section 3.33 of the Environmental Planning and Assessment Act 1979.

2. Forward the draft Planning Proposal to the NSW Department of Planning and Environment for a Gateway Determination under Section 3.34 of the Environmental Planning & Assessment Act 1979, and request that the Gateway Determination authorise Council to be the local plan-making authority.

3. Delegate authority to the Chief Executive Officer to make any minor updates to the Planning Proposal prior to seeking a Gateway Determination, and/or as a result of the issue of Gateway Determination.

4. Receive a report following the public exhibition period on any submissions received.

carried: 8/0

For: Edwards, Griffiths, Intemann, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

13.11 Regional Integrated Transport Strategy

Resolved: Intemann/Griffiths

That Council:

1. Endorse the draft Regional Integrated Transport Strategy 2022-2042 for the purpose of public exhibition.

2. Endorse the draft Engagement Plan, noting that it is intended to place on public exhibition together, the draft Blueprint for Generational Equity, the draft Infrastructure Strategy and the draft Regional Integrated Transport Strategy, if endorsed, in recognition of the strategic importance and inter-relationships between the documents.

3. Place the draft Regional Integrated Transport Strategy on public exhibition for a period of not less than 28 days in accordance with the Engagement Plan.

4. Note that three (3) further reports will be presented to the April 2023 Ordinary Council Meeting following the public exhibition period, detailing the submissions received and any recommended changes to the three (3) draft documents for consideration by Council.

carried: 8/0

For: Edwards, Griffiths, Intemann, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

Councillor Lipovac returned to the meeting, the time being 03:05pm.

Councillor Sheppard left the meeting, the time being 03:06pm.

CONFIDENTIAL SESSION

RESOLVED: Roberts / Sheppard

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 Confidential Session of Council on the basis that items to be considered are of a confidential nature.

2. That Council move into Closed Session to receive and consider the following items:

Item 14.01 Budget and Reporting Application

This item is considered confidential under Section 10A(2)(d(ii)) of the Local Government Act 1993, as it contains commercial information of a confidential nature that would, if disclosed, confer a commercial advantage on a competitor of the Council.

Item 14.02 Electricity Contracts

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 14.03 Purchase of Tuffins Lane Sports Precinct Land, Port Macquarie

Item 14.04 Tender T-22-61 Aviation Security Screening Services, Port Macquarie Airport

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

Item 14.05 Materials Recovery Facility and Recycling Processing Options

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

14.01 Budget and Reporting Application

Resolved: Roberts/Lipovac

That Council:

1. Note that the requirements for the budget and reporting application will be considered as part of the Enterprise Resource Planning system review.

2. In accordance with section 55(3)(i) of the Local Government Act 1993, not invite tenders for council’s budget and reporting application due to extenuating circumstances for the reasons that councils seeks to extend the contract with Jedox Pty Ltd for the budget and reporting application for a further renewal period(s) to align with the Enterprise Resource Planning system review.

3. Maintain the confidentiality of the consideration in respect of the budget and reporting application procurement matter outlined in this report.

carried: 8/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts and Slade

Against: Nil

Councillor Sheppard returned to the meeting, the time being 03:08pm.

14.02 Electricity Contracts

Resolved: Griffiths/Roberts

That Council:

1. In accordance with section 55(3)(i) of the Local Government Act 1993, not invite tenders for the supply of electricity to Council’s sites and facilities due to extenuating circumstances for the reasons that a satisfactory outcome would not be achieved by openly advertising the invitation of tenders.

2. Decide to undertake a selective tendering method, requesting pricing from retailers as detailed in this report.

3. Subject to successful selective tendering process, the Chief Executive Officer shall accept the tender of the successful tenderer, under existing delegation to the Chief Executive Officer and present a further report to a future meeting of Council on completion of the selective tendering process for Council’s information.

4. Maintain the confidentiality of the consideration in respect of the procurement processes for the supply of electricity outlined in this report.

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

14.03 Purchase of Tuffins Lane Sports Precinct Land, Port Macquarie

Resolved: Roberts/Pinson

That Council:

1. In accordance with the Council resolution of 20 October 2022 to purchase the land as described as follows, pay the amount of $1,512,500 (including GST) to the owner of Lots 103, 104, 132 and 203 in Deposited Plan 754434 and Lot 102 in Deposited Plan 1181696, The Trustees of the Roman Catholic Church for the Diocese of Lismore, for the acquisition of Lots 103, 104, 132 and 203 in Deposited Plan 754434 and Lot 102 in Deposited Plan 1181696, associated with the Tuffins Lane Sports Precinct, Port Macquarie.

2. As required, pursuant to Section 34 of the Local Government Act 1993 commence the process to classify Lots 103, 104, 132 and 203 in Deposited Plan 754434 and Lot 102 in Deposited Plan 1181696 as “operational land” by placing on public exhibition the proposed resolution “It is intended to classify Lots 103, 104, 132 and 203 in Deposited Plan 754434 and Lot 102 in Deposited Plan 1181696 (land situated at 10 - 20 Tuffins Lane, Port Macquarie) as operational land” from 9 December 2022 for a minimum period of 28 days and allowing for the Christmas holiday period.

3. Note that a further report will be tabled at the February 2023 Ordinary Council meeting detailing any submissions received during the exhibition period relating to the classification of the land.

4. Adopt a budget adjustment for the land acquisition referred to in Resolution 1 above, in the amount of $1,375,000 (excluding GST).

5. Enter into total borrowings of $1,375,000 (excluding GST) for the land acquisition referred to in Resolution 1 above.

carried: 7/2

For: Edwards, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Griffiths and Intemann

14.04 Tender T-22-61 Aviation Security Screening Services, Port Macquarie Airport

Resolved: Griffiths/Roberts

That Council:

1. In accordance with section 178(1)(b) of the Local Government (General) Regulation 2021, decline to accept any tenders submitted for Request for Tender T-22-61 Aviation Security Screening Services, Port Macquarie Airport.

2. In accordance with section 178(3)(e) of the Local Government (General) Regulation 2021 enter into negotiations with MSS Security Pty Ltd and Sydney Night Patrol and Inquiry Co Pty Ltd with a view to entering into a contract in relation to the subject matter of the contract.

3. In accordance with section 178(4)(a) and (b) of the Local Government (General) Regulation 2021, decline to invite fresh tenders for the reason that the evaluation panel considers that the organisations identified in Recommendation 2 above have the demonstrated capability, capacity and experience to meet the requirements of the contract.

4. Note the Chief Executive Officer, under existing delegation to the General Manager, may accept a tender for T-22-61 Aviation Security Screening Services, Port Macquarie Airport following successful negotiations, and present a further report to a future meeting of Council after contract award for Council’s information.

5. Maintain the confidentiality of the documents and consideration in respect of Tender T-22-61 Aviation Security Screening Services, Port Macquarie Airport.

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

14.05 Materials Recovery Facility and Recycling Processing Options

Resolved: Roberts/Pinson

That Council:

1. Note the continued intention to align future waste management contracts in 2026.

2. Note the difficulty experienced in establishing short term contract terms as resolved in February 2022, for the Processing of Dry Recycling at the Cairncross Materials Recovery Facility.

3. In accordance with Section 55(3)(i) of the Local Government Act, 1993, due to the extenuating circumstances to allow sufficient time to plan for Council's long term recycling infrastructure and alignment, not to call public tenders for the Processing of Dry Recycling at the Cairncross Materials Recovery Facility at this time.

4. Request the Chief Executive Officer to enter into negotiations to vary contract number S.600.119.05.02 for the Processing of Dry Recycling at the Cairncross Materials Recovery Facility with JR Richards Pty Limited for a further period expiring 31 August 2026 in accordance with the terms and conditions specified in the contract.

5. Delegate to the Chief Executive Offer the authority to negotiate and sign the contract deed of variation with JR Richards Pty Limited expiring 31 August 2026 in accordance with the terms and conditions specified in the contract.

6. Note the approach proposed for the establishment a new Materials Recovery Facility with best available technology at the Cairncross Waste Management Facility.

7. Note that a further report will be tabled providing the negotiated rates/fees accepted for the contract variation.

8. Maintain the confidentiality of the documents and consideration in respect of this contract.

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

RESOLVED: Lipovac/Roberts

That the Council Meeting be re-opened to the public

carried: 9/0

For: Edwards, Griffiths, Intemann, Lipovac, Maltman, Pinson, Roberts, Sheppard and Slade

Against: Nil

The meeting closed at 3:26pm.

………………………………………..

Peta Pinson

Mayor

AGENDA Ordinary Council 16/02/2023

Item: 06

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 Chief Executive Officer, such a disclosure is to be made to the staff member’s manager. In the case of the Chief Executive Officer, 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 Chief Executive Officer, 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 Chief Executive Officer, 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 Chief Executive Officer 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

16/02/2023

Item: 10.03

Subject: Status of Reports From Council Resolutions

Presented by: Business and Performance, Keith Hentschke

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

FEBRUARY 2023 REPORTS
Report	Date and Item of Resolution	Status	Reporting Officer	Previous Anticipated Date/s for Report	Current Anticipated Date for Report
Port Macquarie-Hastings Tree Management Policies and Procedures	19/05/2022 Item 12.01		DPCE	Jun-22 Sep-22 Nov-22 Dec -22	Feb-23
Site Specific Planning Proposal Requests. Bi-Annual Report	16/06/2022 Item 14.02		DCPE	Dec-22	Feb-23
Port Macquarie Aquatic Facility Staging options and impacts.	17/11/2022 Item 12.04		DCPE		Feb-23
Ferry Operations Vehicle Movements and Vehicles Left on Bank Monitoring	19/05/2021 Item 12.03	Ferry Operations Mar 2023. The trial period for amended ferry operations was superseded via resolution August 2021 to continue indefinitely. Ferry data is currently being reviewed a further update on ferry operations/associated data planned for early 2023 via briefing as time permits within the Councillor schedule and report.	DCI	Oct-21 Nov-21 Feb-22 Jun-22 Dec-22	Feb-23
FEBRUARY 2023 REPORTS
Report	Date and Item of Resolution	Status	Reporting Officer	Previous Anticipated Date/s for Report	Current Anticipated Date for Report
Port Macquarie Works Depot	16/06/2022 Item 11.16	Project plan is being established, focusing on needs/location, including the consideration of recently purchased land at Koala Street. Stakeholder engagement and requirements are currently being determined.	CEO	Oct-22	Feb-23
COVID-19 Recovery and Stimulus Projects update	18/8/2022 Item 13.01		DCPE		Feb-23
Policy Review: Management of Public Spaces. Outlining success of method dealing with these Issues	16/06/2022 Item 12.03	Policy only published online late November.	GMC	Dec-22	Feb-23
Classification of Tuffins Lane Sports Precinct Land, Port Macquarie	08/12/2022 Item 14.03	A further report following Public Exhibition be provided to Council	DCPE		Feb-23
Recreation Action Plan: Report on Public Exhibition	08/12/2022 Item 11.03	Report be brought back to Council for consideration.	DCPE		Feb-23
Electricity Contracts	08/12/22 Item 14.02	A further report to future Council meeting	DBP		Feb-23

MARCH 2023 REPORTS

Report

Date and Item
of
Resolution

Status

Reporting Officer

Previous Anticipated Date/s for Report

Current Anticipated
Date for
Report

Community Satisfaction Survey	19/05/2022 Item 12.01	Workshop to be held with Councillors	DCPE	Feb-23	Mar-23
Prioritisation of Sporting Infrastructure Projects Outcome following discussions with Federal and State members	16/06/2022 Item 14.02	Discussions to take place with Federal and State members prior to report to Council	DCPE	Oct-22 Nov-22 Feb-23	Mar-23
Recreation Action Plan	20/10/2022 Item 12.07	Recreation working group to be established.	DCPE	Feb-23	Mar-23
Tacking Point Surf Life Saving Club	17/11/2022 Item 12.04	Awaiting information from Crown Land	DCPE	Feb-23	Mar-23
Integrated Transport Plan: Milestone Events	19/05/2021 Item 12.03	Request the Chief Executive Officer provide a report to Council in accordance with milestone events associated with progress on the Integrated Transport Plan.	DCI	Feb-23	Mar-23
Policy Review: Community Leasing and Licensing Policy	16/06/2022 Item 11.16	Councillors requested a further report be brought to the March 2023 meeting	DCPE		Mar-23
Delivery of Camden Haven Surf Life Saving Club	18/8/2022 Item 13.01	Awaiting information from Crown Land	DCPE	Dec-22	Mar-23
Tendering and purchasing process: Council's commitment and support to local business for previous 12 months	17/03/2022 Item 14.07		DBP		Mar-23
Draft Port Macquarie-Hastings Local Housing Strategy: 2021-2041 post exhibition	20/10/2022 Item 12.07	Consultation with industry to take place	DCPE	Oct-21 Mar-22 Jun-22 Nov 22	Mar-23
MARCH 2023 REPORTS
Report	Date and Item of Resolution	Status	Reporting Officer	Previous Anticipated Date/s for Report	Current Anticipated Date for Report
Notice of Motion: Councils Long Term Energy Strategy	16/06/2022 Item 12.03	Report to council on suitable Council owned land which could accommodate renewable energy projects	DCPE		Mar-23
Tender T-22-61 Aviation Security Screening Services	08/12/2022 Item 14.03	Further report to Council after contract has been awarded Negotiations continue	DBP	Feb-23	Mar-23

APRIL 2023 REPORTS

Report

Date and Item
of
Resolution

Status

Reporting Officer

Previous Anticipated Date/s for Report

Current Anticipated
Date for
Report

Payment of Water and Sewer fund dividends for 2021-2022	08/12/2022 Item 10.12	A separate report be brought back to Council if successful in the application outlying the expenditure.	DPB		Apr-23
Policy Review: Planning Proposal Policy	08/12/2022 Item 13.08	A further report will be tabled following public exhibition	DCPE		Apr-23
Draft Policy: Port Macquarie-Hastings Local Council Interpretation Policy and Guidelines	08/12/2022 Item 11.02	A further report be brought to Council following the public exhibition	DCPE		Apr-23
Notice of Motion : Alternative Routes in the Health and Education Precinct	08/12/2022 Item 12.01	A report to Council on the status of progress in the matters of points 1 and 2	DCI		Apr-23
Regional Integrated Transport Strategy	08/12/2022 Item 13.11	a further three (3) further reports to Council meeting following public exhibition.	DCPE		Apr-23
Draft Infrastructure Strategy report: Details of submissions and recommendations	17/11/2022 Item 11.14		DCPE		Apr-23
MAY 2023 REPORTS
Report	Date and Item of Resolution	Status	Reporting Officer	Previous Anticipated Date/s for Report	Current Anticipated Date for Report
Business Rating Model: Independent Review	08/12/2022 Item 10.09	A further report be brought to Council addressing items in point 7	DPB		May-23

JUNE 2023 REPORTS
Report	Date and Item of Resolution	Status	Reporting Officer	Previous Anticipated Date/s for Report	Current Anticipated Date for Report
Implementation of Fly Neighbourly Agreement 12 month Update	19/05/2022 Item 13.01		DBP		Jun-23
Port Macquarie Airport Six Month Report	08/12/2022 Item 12.04	A further report to be presented to Council			Jun-23
Draft s9.11 Airport Business Park Roads Contribution Plan	20/05/2020 Item 13.05	To be considered as part of wider development contribution framework review and proposed development yet to be assessed.	DCPE	Dec-20 Jun-21 Oct-21 Jun-22 Dec-22	Jun-23
Post Exhibition: Classification as "Operational" Land 52 John Oxley Drive, Port Macquarie:	20/06/2018 Item 14.05	To be incorporated in strategic property portfolio review to be undertaken in 2022/2023	DBP	Mar-20 Nov-20 Mar-21 Apr-21 Jun-21 Sep-21 Feb-22 Jun-22	Jun-23
Material Public Benefit Developer Delivered Sewer Works Kendall completion of works	17/03/2022 Item 14.07	Request the CEO to add a new action to the 2021-2022 Operational Plan Kew Kendall SPS#1 Upgrade and Works. Moved to June 23 as works have not yet been completed.	DCU	Feb-23	Jun-23

Future Reports
Report	Date and Item of Resolution	Status	Reporting Officer	Previous Anticipated Date/s for Report	Current Anticipated Date for Report
Kempsey Shire Council, Cairncross Landfill. Details of Waste accepted during 2022-2023	18/8/2022 Item 16.05		DCU		Aug-23
Draft MR538 and MR600 Corridor Strategy Following Public Exhibition	19/05/2022 Item 14.04		DCI		Oct-23
Biodiversity Certification Assessment and Strategy. Port Macquarie Airport and Surrounding Land viability/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		DCPE		2024 (estimate)
Policy Review: Volunteer Policy	21/04/2022 Item 11.09	Resolved by Council in July 2022 Ordinary Council meeting to defer policy pending a workshop being undertaken	DCPE	Jul-2022 Oct-22 Dec 22	TBA
Progress of Sale: Council owned lots at North Shore.	19/09/18 Item 09.24	Subject to strategic property portfolio review to be undertaken in 2022.	DBP	Dec-19 Feb-20 Sep-20 Mar-21 Apr-21 Jun-21 Sep-21 Feb-22 Aug-22	TBA
Sale of Surplus Land: 178 Nancy Bird Walton Drive, Kew	16/02/2022 Item 09.23	Subject to strategic property portfolio review to be undertaken in 2022.	DBP	Dec-22	TBA
Future Reports
Report	Date and Item of Resolution	Status	Reporting Officer	Previous Anticipated Date/s for Report	Current Anticipated Date for Report
Lots 101 and 102 DP 1244390 Pacific Drive, Port Macquarie. Options for operational land	07/03/2022 Item 10.01	Subject to strategic property portfolio review to be undertaken in 2022.	DBP		TBA
T-22-51 Water and Sewer Process Membrane Replacement Program following negotiations	21/07/2022 Item 16.02		DCU		TBA
T-21-27 Supply and Delivery of Water Treatment Chemicals Following Negotiations	21/07/2022 Item 16.03		DCU		TBA
Response to Notice of Motion. Southern Breakwall, Port Macquarie	18/8/2022 Item 14.01		DCPE		TBA
Wastewater Treatment Plant Capacities Finalising Planning Proposals Port Macquarie /Thrumster Sewerage Scheme Catchment	18/8/2022 Item 14.04		DCU/DCPE		TBA
Endorsement of Membership to Mayor's Sporting Fund Sub-Committee	18/8/2022 Item 11.02		DCPE		TBA
Hastings Youth Voice - Future report to be tabled	15/09/2022 Item 12.02		DCPE		TBA
Blueprint for Generational Equity further report to Councillors following consultation with community	17/11/2022 Item 12.03		CEO		TBA
Land Acquisition Kendall Road, Kendall Following Exhibition	17/11/2022 Item 14.05		DCPE		TBA
RFQ-21-57 Design and Construction of Valve Pits	17/11/2022 Item 16.01		DBP		TBA

CYCLIC REPORTS

Report	Reporting Officer	Reporting Cycle	Month	Altered Report Date	Reason for Altered Date
Mayoral Discretionary Fund Allocations	CEO	Monthly	Every
Monthly Financial Update	DBP	Monthly	Every (except July)
Investments	DBP	Monthly	Every
Recommendations by the Port Macquarie-Hastings Sporting Fund Sub-Committee	DCPE	Monthly	Every (except Feb)	March 2023	Due to sequence of meeting
Opening Lake Cathie (13/01/2022 Item 05.01)	DCPE	Monthly	Every
Legal Fees - Update Report (19/09/18 - Item 09.16)	CEO	Quarterly	Feb, May, Aug, Nov
Development Activity and Assessment System Performance	DCPE	Quarterly	Feb, May, Aug, Nov
Community Inclusion Plan Update of Tasks, Measures and Actions	DCPE	Quarterly	Sep, Dec, Mar, Jun
Operational Plan – Quarterly Progress	DBP	Quarterly	May, Nov (other 2 quarters reported with DP 6 monthly progress report)
Grant Application Status Report (21/08/19 - Item 11.02)	DCPE	Biannual	Feb, Aug
Glasshouse Strategic Plan Update	DBP	Biannual	Feb, Aug
Delivery Program – Six Monthly Progress	DBP	Biannual	Feb, Sep
Update on Site Specific Planning Proposal Requests	DCPE	Biannual	Jun, Dec

Report	Reporting Officer	Reporting Cycle	Month	Altered Report Date	Reason for Altered Date
Mayoral and Councillor Fees (Setting of)	CEO	Annually	May
Port Macquarie-Hastings Destination Management Plan 2020-2024 (20/05/2020 - Item 12.01)	DCPE	Annually	Jun
Kooloonbung Creek Flying Fox Camp Management Plan - Annual Update (16/06/2021 - Item 12.03)	DCPE	Annually	Jun
Council Policy - Status	CEO	Annually	Jul
Recreation Action Plan – Status	DCPE	Annually	Jul
UGMS - Annual Progress Report on Implementation and Status of Actions (20/06/18 - Item 12.07)	DCPE	Annually	Jul
Local Preference Policy Outcomes	DBP	Annually	Aug
Cultural Plan 2021 - 2025: Implementation and evaluation of actions undertaken (04/08/2021 - Item 10.01)	DCPE	Annually	Aug
Council Meeting Dates	CEO	Annually	Nov
Audit Committee Annual Report	CEO	Annually	Dec
Legislative Compliance Register	CEO	Annually	Sep
Koala Recovery Strategy Annual Report (19/09/18 - Item 12.05)	DCPE	Annually	Sep
Annual Disclosure of Interest Returns	CEO	Annually	Oct
Professional Development of Councillors (15/09/2021 - Item 09.07)	CEO	Annually	Oct	Dec-22	To be considered in Mar 2023 following consultation with Councillors

Report	Reporting Officer	Reporting Cycle	Month	Altered Report Date	Reason for Altered Date
Council’s Annual Report	DBP	Annually	Nov
Performance of Property Investment Portfolio (20/11/19 - Item 10.17)	DBP	Annually	Nov
Local Strategic Planning Statement (03/11/2021 - Item 12.05)	DCPE	Annually	Nov
Strategic Planning Statement - Implementation of Actions (03/11/2021 - Item 12.05)	DCPE	Annually	Nov
Code of Conduct Complaints Annual Report	CEO	Annually	Dec
General Fund Operating Performance	CEO	Biannual	Dec June

Attachments

Nil

AGENDA Ordinary Council

16/02/2023

Item: 10.04

Subject: 2024 Ordinary Local Government Election

Presented by: Business and Performance, Keith Hentschke

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 resolve that:

1. Pursuant to sections 296(2) and 296(3) of the Local Government Act 1993 (NSW) (“the Act”) an election arrangement be entered into by contract for the Electoral Commissioner to administer all elections of the Council.

2. Pursuant to sections 296(2) and 296(3) of the Act that a council poll arrangement be entered into by contract for the Electoral Commissioner to administer all council polls of the Council where required.

3. Pursuant to sections 296(2) and 296(3) of the Act that a constitutional referendum arrangement be entered into by contract for the Electoral Commissioner to administer all constitutional referenda of the Council where required.

Executive Summary

The next Ordinary Local Government Election is scheduled for the second Saturday in September 2024, being 14 September 2024. Council has a number of options available being:

1. Council conducts the 2024 Ordinary Election.

2. Council can partner with an external service provider (partial outsource). This would require Council to undergo a competitive tendering process and as a result resolve to enter in to a contract with the successful tenderer.

3. Council can partner with an external service provider (100% outsourced). This would require Council to undergo a competitive tendering process and as a result resolve to enter in to a contract with the successful tenderer.

4. Council can engage the NSW Electoral Commission (100% outsourced).

If Council decides to engage the services of the NSW Electoral Commission (NSWEC) to administer this election, Council is required to resolve to that effect prior to 14 March 2023.

Discussion

Background

Section 296 of the LG Act provides that council elections, polls and referenda are to be administered by the Chief Executive Officer of the council concerned. However, councils can engage the NSWEC to administer elections, polls and referenda on their behalf.

With regard to the 2021 Local Government elections, it is noted that of the 128 councils in NSW, 122 councils engaged the NSW Electoral Commissioner to conduct the elections, 4 councils were under administration and did not conduct elections and the remaining 2 councils engaged a commercial election service provider.

If a council decides to engage the services of the NSWEC, the council must pass a resolution, to that effect, at least 18 months prior to the next Ordinary Local Government Election.

Should Council decide to engage the NSWEC to administer the next Ordinary Local Government Election, occurring in September 2024, it must pass a resolution to do so prior to 14 March 2023.

As Council now has the freedom of choice with regards to the conduct of elections, polls and referenda, a number of options are available:

Option 1: Council conducts the 2024 Ordinary Election

Council could conduct the election. The Office of Local Government has released guidelines under section 23A of the LG Act to assist councils to understand their level of responsibility and accountability if they chose to administer their own election.

If Council administers the election, the Chief Executive Officer would be responsible for the following:

· Conducting the election.

· Appointing the Returning Officer and substitute Returning Officer.

· Appointing the polling places.

· Determining the fees payable to the Returning Officer, the substitute Returning Officer and electoral officials.

· Confirming the roll of non-resident owners of rateable land and the roll of occupiers and rate-paying lessees.

· Preparing a list of names of those on the residential roll, who appeared to have not voted at the election, and forwarding this list to the Electoral Commissioner within 14 days (or within a longer period if provided for in the Regulation) of the election.

· Managing the relevant election costs.

· Preparing a report for the Minister for Local Government on the conduct of each election that must disclose, among other things, full and transparent costings for that election.

This option would place significant strain on Council resources, impacting heavily on Council operations.

Option 2: Partner with an external service provider (partial outsource)

Council could partner with an external provider - selectively outsourcing components of the election. This would require Council to undergo a competitive tendering process and as a result resolve to enter in to a contract with the successful tenderer. Information is provided in the attachment.

Under this model, the Chief Executive Officer would hold the responsibilities as are listed under Option 1.

Partial outsourcing is not available utilising the services of the NSWEC.

Option 3: Partner with an external service provider (100% outsource)

Council could partner with an external provider - outsourcing the administration of the entire election. This would require Council to undergo a competitive tendering process and as a result resolve to enter in to a contract with the successful tenderer.

Under this model, the Chief Executive Officer would hold the responsibilities as are listed above, under Option 1.

Option 4: Engage the NSW Electoral Commission (100% outsource)

Council could engage the NSWEC - outsourcing the administration of the entire election.

Under this model, the Electoral Commissioner, not the Chief Executive Officer, would hold the following responsibilities:

· Conducting the election.

· Appointing the Returning Officer and substitute Returning Officer.

· Appointing the polling places.

· Determining the fees payable to the Returning Officer, the substitute Returning Officer and electoral officials.

· Managing the relevant election costs.

· Preparing a report for the Minister for Local Government on the conduct of each election that must disclose, among other things, full and transparent costings for that election.

Regardless of the option chosen, there are certain legislative requirements that the Chief Executive Officer is required to fulfil, these are the confirmation of the roll of non-resident owners of rateable land and the roll of occupiers and rate-paying lessees (Section 299 and 300 of the LG Act).

Pricing

Council engaged the NSW Electoral Commission to conduct the 2021 Local Government Election at a cost $570,822 (ex GST). It is noted that the cost of holding the 2021 Local Government Elections across the state were subsidised by the NSW Government by funding $86 million to ensure that COVID-19 requirements during the election were not funded by councils. No such funding arrangement has been announced for the 2024 elections.

The most recent comparative cost information Council has between engaging the NSW Electoral Commission and a commercial election provider is from 2018 and at that time the commercial election provider was approximately 13% higher in estimated costs than the NSW Electoral Commission.

The NSW Electoral Commission have indicated that they estimate that the cost to conduct the 2024 Local Government election for Port Macquarie-Hastings Council will be a significant increase on the 2021 elections. This increase on the 2021 local government election cost is partly due to:

· Early voting centre rental costs have significantly increased

· Logistics costs are increasing by 10% year-on-year

· The fuel levy for material deliveries and collections has increased by 24%

· The 3-year CPI increase is 13.12%

· Staff costs have risen by 2.83% pa

· Growth in the number of electors is 3.34% over 3 years

· Paper costs have risen (affecting ballot papers and printed rolls)

The estimate has been included in a confidential attachment, as Attachment 1, so as not to prejudice the commercial position of the NSW Electoral Commission should Council resolve to conduct the 2024 local government election without engaging the NSW Electoral Commission with competitive tenders being sought.

This estimate cost does not include the core costs of conducting the election which is funded by the NSW Government. These costs included in the estimate are directly attributed to the Port Macquarie-Hastings Council local government area.

It should also be noted that this is an estimate and some costs may increase at higher rates than are currently being experienced resulting in a higher actual costs at the time of the election. These increased costs would likely affect any commercial election provider as well as the NSWEC.

Factors for Consideration

Factors for Consideration: Engaging the NSWEC

· Election held independently of Council.

· Electoral Commissioner holds responsibility of the election.

· NSW Electoral Commission very experienced and has demonstrated they can resource an election for almost all NSW Councils simultaneously.

· Minimal burden on current Council operations.

· There is no requirement for a public tender process should the NSW Electoral Commission be engaged as section 55(3)(p) of the Local Government Act 1993 provides an exclusion when entering into contracts with the Electoral Commissioner for the Electoral Commissioner to administer the council’s elections, council polls and constitutional referendums.

Factors for Consideration: Engaging an external election service provider

· Chief Executive Officer’s responsibilities include:

o Conducting the election.

o Appointing the Returning Officer and substitute Returning Officer.

o Appointing the polling places.

o Determining the fees payable to the Returning Officer, the substitute Returning Officer and electoral officials.

o Confirming the roll of non-resident owners of rateable land and the roll of occupiers and rate-paying lessees.

o Preparing a list of names of those on the residential roll, who appeared to have not voted at the election, and forwarding this list to the Electoral Commissioner within 14 days (or within a longer period if provided for in the Regulation) of the election.

o Managing the relevant election costs.

o Preparing a report for the Minister for Local Government on the conduct of each election that must disclose, among other things, full and transparent costings for that election.

· Returning Officer:

o Cannot be an employee of Council.

o Cannot vote in the election.

· Access and availability to suitably qualified election officials.

· Increased Council staff responsibilities and burden of risk.

· Perception of ‘independent’ conduct of election.

· Storage of election material (post-election).

Options

1. Council conducts the 2024 Ordinary Election.

2. Council can partner with an external service provider (partial outsource).

3. Council can partner with an external service provider (100% outsourced).

4. Council can engage the NSW Electoral Commission (100% outsourced).

If Council does not resolve to engage the NSW Electoral Commission prior to 14 March 2023, Council’s Chief Executive Officer will be responsible for administering the 2024 Ordinary Local Government Election for Port Macquarie-Hastings Council. Council would then need to determine if it was to engage an external provider to conduct the election or conduct the election in-house with Council resources.

Community Engagement and Internal Consultation

Community Engagement

No community engagement undertaken.

Consultation

· Chief Executive Officer

· Group Manager Governance

Planning and Policy Implications

Section 296 of the LG Act now provides that Council elections, polls and referenda are to be administered by the Chief Executive Officer.

However, under section 296(2) of the LG Act, Council has the option to engage the services of the NSWEC, should it resolve to do so.

Engaging the NSWEC

Should Council wish to engage the NSWEC to conduct the 2024 Ordinary Local Government Election, Council must:

1. Resolve to engage the NSWEC no later than 18 months prior to the next Ordinary Local Government Election, being before 14 March 2023.

2. Enter into an arrangement, by contract, no later than 15 months prior to the next Ordinary Local Government Election, being before 14 June 2023.

Not engaging the NSWEC

If Council does not resolve to engage the NSWEC prior to 14 March 2023, the Chief Executive Officer will be responsible for administering the 2024 Ordinary Local Government Election.

Should Council resolve to administer the 2024 Ordinary Local Government Election itself, such a resolution should specify (on advice from the Office of Local Government):

1. Whether the Chief Executive Officer intends to administer elections personally or to engage an electoral services provider; and

2. If the Chief Executive Officer intends to administer elections personally, whether the Chief Executive Officer has identified any persons to be appointed as the Returning Officer and substitute Returning Officer and, if so, their names; and

3. If the Chief Executive Officer intends to engage an electoral services provider, whether the Chief Executive Officer has identified an electoral services provider and, if so, the name of that provider.

Financial and Economic Implications

Council is financially prudent regarding the cost of the four (4) yearly Ordinary Local Government Election and allocates funds to the election reserves where possible.

Attachments

1 . 2024 Local Government Election - Cost Estimate (Confidential)

AGENDA Ordinary Council

16/02/2023

Item: 10.06

Subject: Quarterly Budget Review Statement - December 2022

Presented by: Business and Performance, Keith Hentschke

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 December 2022 Quarter.

Executive Summary

This report details Council’s progress against the original and revised 2022-2023 budget as at the end of the second quarter being 31 December 2022.

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 2021 (‘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:

09.09 SUPPLY OF SERVICES TO COUNCIL

That Council:

1. Note the information contained within the report.

2. 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.

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

Confidential Attachment 2 titled “Confidential - December 2022 Quarterly Budget Review - Consultancy Engagements” relates to information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting for 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 (December 2022 Quarterly Budget Review Statement).

Income and Expenses – QBRS Page 1

Rates and Annual Charges

YTD Budget

YTD Actual

Budget Variance

% Received

$105.768m

$106.320m

+$0.552m

100.5%

Major budget variances include:

- Rates: + $0.570m

Rates revenue is slightly above YTD budget due to growth. This will continue to be monitored and reviewed for a possible budget adjustment in the third quarter.

User Charges and Fees

YTD Budget

YTD Actual

Budget Variance

% Received

$17.689m

$17.557m

-$0.132m

99.3%

User Charges and Fees is in line with YTD Budget. There are no material budget variances within this quarter.

Interest and Investment Revenue

YTD Budget	YTD Actual	Budget Variance	% Received
$2.939m	$4.297m	+$1.358m	146.2%
Interest and Investment Income is higher than YTD budget, largely due to higher than predicted interest rates, as well as higher than predicted reserve balances available for investment. This will continue to be monitored and reviewed for a possible budget adjustment in the third quarter.

Other Revenues

YTD Budget

YTD Actual

Budget Variance

% Received

$3.156m

$3.795m

+$0.639m

120.2%

Major budget variances include:

- Waste Management: + $0.525m

- Glasshouse: + $0.160m

Waste income is above YTD budget due to the sale of carbon credits and increased steel sales at all four of Council’s Waste Depot sites. It is noted that an option to sell carbon credit units outside of contract arrangements with the Clean Energy Regulator has recently become available which provides Council with an opportunity to potentially obtain a higher price per unit and therefore increased profit. Council has therefore decided to sell their Australian carbon credit units to the secondary market.

Glasshouse Commercial Hire revenue is above YTD budget. This is attributed to the facility operating at increased capacity following on from the COVID-19 impacts.

The above will continue to be monitored and reviewed for a possible budget adjustment in the third quarter.

Operating Grants and Contributions

YTD Budget

YTD Actual

Budget Variance

% Received

$5.375m

$5.600m

+$0.225m

104.2%

Major budget variances include:

- Natural Resources: + $0.555m

- Community Inclusion: - $0.249m

Natural Resources operating grants is above YTD budget. This is due to various new grants being received this quarter. They include Koala Strike, the Koala Habitat Mapping Project and the Black Summer Bushfires funding. Budget adjustments for these grant are included in the January Budget Review (also contained within the agenda of this meeting).

Community Inclusions operating grants are below YTD budget. This is a timing issue only. There was a payment expected for a “Reconnecting Communities” grant in December that is now delayed, noting that confirmation has been received that requirements have been met and funds will be paid.

Capital Grants and Contributions

YTD Budget

YTD Actual

Budget Variance

% Received

$22.656m

$19.526m

-$3.130m

86.2%

Major budget variances include:

- Roads & Bridges: - $7.827m

- Developer Contributions: + $5.491m

Capital Grants for Roads and Bridges are below YTD budget. This is due to the timing of when grant receipts have been phased, the largest being $8.5m for the Ocean Drive Duplication project, which will now be recognised as an end of year adjustment.

Developer contributions are above budget as at the end of first half of the year. This variance is due to the timing of contribution receipts and the level of development activity. They will continue to be monitored and restricted at the end of financial year.

Employee Costs

YTD Budget

YTD Actual

Budget Variance

% Expended

$29.715m

$28.365m

-$1.350m

95.5%

Major budget variances include:

- Salaries & Wages: - $1.341m

The favourable variation in salaries and wages is due to vacant positions and the timing of employees taking leave during this quarter. It is noted that actual FTE numbers at December 2022 reflected 44 positions or 7% lower than the budgeted FTEs of 614.

Borrowing Costs

YTD Budget

YTD Actual

Budget Variance

% Expended

$0.635m

$0.643m

+$0.08m

101.3%

Interest on Loans is in line with YTD Budget.

Materials and Contracts

YTD Budget

YTD Actual

Budget Variance

% Expended

$25.372m

$20.760m

-$4.612m

81.8%

Major budget variances include:

- Water Supply: - $0.652m

- Sewerage Services: - $0.413m

- Waste Contract Management: - $0.516m

- Digital Technology: - $0.479m

- Destination and Cultural Development: - $0.351m

- Parks and Recreation: - $0.340m

- Strategic Planning: - $0.378m

The variances in Water and Sewer are due to the timing of operational maintenance on Council’s assets. Unfavourable weather conditions in the first half of the year have had an impact on when works can be carried out. This will continue to be monitored and adjusted if required.

The variance in Waste Contract Administration is due to the timing of contractor payments.

Digital Technology expenditure is below YTD budget due to the timing of contractor payments.

The variance in Destination and Cultural Development is due to expenditure on Tourism Marketing, with actuals below YTD budget. This will be monitored and adjusted if necessary.

Parks and Recreation is running below budget with levels of maintenance also weather dependent. This will continue to be monitored and adjusted if required.

Strategic Planning is below YTD budget due to several projects running behind schedule.

Other small variances exist in Materials and Contracts throughout areas of Council.

Depreciation

YTD Budget

YTD Actual

Budget Variance

% Expended

$25.377m

$26.104m

+$0.727m

102.9%

The higher than budgeted depreciation is due largely to variances in roads and sewer assets. This is due to the impact of the prior year revaluation and the timing of capitalisation of works. This will continue to be monitored and adjusted if required.

Other Expenses

YTD Budget

YTD Actual

Budget Variance

% Expended

$8.352m

$7.081m

-$1.271m

84.8%

Major budget variances include:

- Insurances: - $0.903m

- Payments to Other Levels of Government: - $0.403m

The variances in both Insurances and Payments to Other Levels of Government (Waste Levy) are due to timing of payments only.

Asset Disposal

YTD Budget

YTD Actual

Budget Variance

% Expended

$0.0m

+$0.0m

0.0%

There is no variance to budget.

Capital Expenditure – QBRS Page 2

YTD Budget

YTD Actual

Budget Variance

% Expended

$40.409m

$34.346m

-$6.063m

85.0%

Projects with major budget variances include:

- Kennedy Drive: - $0.949m

- Works delayed due to weather. Project on track overall.

- Sewer Pump Station Upgrades: - $0.705m

- Works on track, timing of payments only.

- Vince Inmon Sporting Fields: - $0.458m

- Project behind schedule. Main building works are yet to commence.

- Kew Main Street: - $0.367m

- Works have commenced on this project, project behind schedule.

- Westport Park Playspace: - $0.348m

- Project on track. Contractor works to start in January.

- Rainbow Beach Sports Field: - $0.344m

- Project on track. Timing of contract payments only.

It is noted that the actual expenditure does not necessarily 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 “2022- 2023 Operational Plan - Progress Report as at 31 December 2022” which is also on the agenda of the Ordinary Council Meeting for February 2023 and contained within the business paper.

Cash and Investments – QBRS Page 3

The return on Council’s investment portfolio for the financial year as at 31 December 2022 was 1.87% which was 0.46% below the benchmark of 2.33%. This is due to the unexpected aggressive rate hikes undertaken by the RBA. Whilst the ‘underperformance’ may continue in the short term, it is anticipated that this is temporary.

Key Performance Ratios – QBRS Page 4

The budget variations and carry-overs that have been adopted throughout the financial year have not had a material impact on the forecasted T-Corp ratios set out in the adopted original budget. The unrestricted current ratio has moved more in line with previous year actuals due to the impact of grants and associated contract liabilities.

Contracts and Other Expenses – QBRS Page 5-6

There were no unbudgeted contracts entered into during the third 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 31 December 2022, is a deficit of $5.983m. As at 31 December 2022 there was a budget surplus of $27,041 for the 2022-2023 financial year. Despite a surplus budget position, there are a number of factors impacting the operating deficit including:

· In recent years, expenditure has grown at a faster rate than income;

· Natural disasters and the COVID-19 pandemic have impacted material and resource costs, as well as supply chains;

· Strategic increases in maintenance expenditure across core areas such as roads, drainage and parks;

· Impact of cost shifting from other levels of government.

As noted in the development of the Operational Plan and original budget, the impacts of the above have been mitigated in the short term in part by the strategic use of Council’s internal reserves. Although a negative operating result is manageable in the short-term, in light of the above factors and in light of Council’s overall financial position, the importance of ensuring Council’s ongoing financial sustainability is recognised. On this basis, Council will continue to focus on improving the general fund operating result in particular, with the development and implementation of an improvement plan.

Attachments

1 . December 2022 Quarterly Budget Review Statement

2 . Confidential - December 2022 Quarterly Budget Review - Consultancy Engagements (Confidential)

AGENDA Ordinary Council

16/02/2023

Item: 10.09

Subject: Investments - December 2022

Presented by: Business and Performance, Keith Hentschke

Alignment with Delivery Program

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

RECOMMENDATION

That Council note the Investment Report for the month of December 2022.

Executive Summary

· Total funds invested as at 31 December 2022 was $426,999,306.

· Interest for the month of December was $789,423.

· The year-to-date investment income of $4,184,810 represents 81% of the total annual investment income budget of $5,173,100.

· Council’s total investment portfolio performance for the financial year to date was 0.46% below the benchmark (1.87% against 2.33%), benchmark being the Bank Bill reference rate as at 31 December 2022.

The following outlines the significant points identified in the attached Monthly Investment Report (Attachment 1), as provided by Council’s investment advisors:

· Council’s portfolio has met compliance requirements, however is marginally below benchmarks during the month due to the unexpected aggressive rate hikes undertaken by the RBA. Whilst the ‘underperformance’ may continue in the short term, it is anticipated that this is temporary.

· Over the past 12 months, the portfolio has returned 1.70% p.a., outperforming bank bills by 0.45% p.a.

· Domestically, the RBA is growing more confident about easing global growth and lower goods price inflation as supply chain disruptions resolve, however the Board notes the balance of risks on Australian wages growth had shifted to the upside. Importantly and perhaps because of these mixed signals - the Board considered a wider range of options for policy at this meeting, including for the first time since interest rates were first increased in May, a pause in the rate rise cycle.

· Council’s exposure to institutions that fund fossil fuels is approximately 82% of the total portfolio.

· Port Macquarie-Hasting Council remains amongst the best performing Councils in NSW where deposits are concerned, earning on average, $1.89m in additional interest income compared to its peers.

Discussion

Council has engaged Imperium Markets to provide both an investment management platform and investment advisory service. This decision was based on the need to provide more rigour and transparency around investment choices and to provide a sound framework to support the need for increased financial sustainability into the future.

The attached investment report and portfolio (Attachment 2) provides detailed information on the performance of Council’s investment portfolio.

Overview

Councils are often large and diverse organisations which have many regulatory and compliance requirements including how to raise revenue, and how that can be spent. For context, Port Macquarie-Hastings Council is a large regional Council with an annual expenditure of approximately $200 million. Whilst every Council has some similarities, they often have characteristics that may set them apart. Port Macquarie-Hastings Council is a large regional Council with high development activity and is also a water authority. These points are relevant in the context of Council reserves / investments. Following is a summary outline of the main areas that have seen an increase in reserves being collected.

Development Activity

This Council has experienced large development growth in recent years and this cycle of activity has seen larger amounts of developer contributions being received during those years. The purpose of these contributions is to fund infrastructure associated with the growth of an area and consequently are for new infrastructure and are future focussed. The funds cannot be spent on existing infrastructure. There are specific contribution plans which dictate which projects can be funded from these funds and many of the projects are not ready for completion yet (or are not yet needed as growth levels do not yet require the infrastructure). To complicate matters, Council’s cannot spend these funds on projects that are not listed in the relevant contribution plans.

Water and Sewer

Port Macquarie-Hastings Council is a water authority. Not every Council is (as separate Water Authorities exist for example, Sydney Water and Hunter Water). The provision of water and sewer services requires large capital investment, with large projects often occurring cyclically and requiring a combination of reserve funds and borrowing to fund these large infrastructure requirements.

Current Investments

Council is required to undertake investments in accordance with section 625 of the Local Government Act 1993. This report provides details of Council’s investments, and certifies that all funds that Council has invested as at 31 December 2022, comply with this Act. All investments have been made in accordance with the Act and Regulations, and Council’s Investment Policy.

As at 31 December 2022, the investments held by Council totalled $426,999,306 and were attributed to the following funds:

General Fund*	188,968,542
Waste Fund	24,116,921
Water Fund	144,671,635
Sewer Fund	67,508,591
Broadwater	1,669,567
Sanctuary Springs	64,050
	426,999,306

*Includes funds collected from development that must be expended in relation to adopted contribution plans. Also includes funds collected for works on the Port Macquarie Town Centre Master Plan.

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

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

It is noted that there is a variance between the total investments held as per this report, ($426,999,306), and total investments held as per Imperium’s attached monthly report ($427,001,099). This is due to the fact that Council’s accounting policy treatment means that floating rate notes (FRNs) are held at amortised cost, whereas they are included at fair value in Imperium’s report.

In relation to Council’s exposure to financial institutions that fund fossil fuels, the following table provides a summary:

Financial institutions funding fossil fuels	Purchases since 01/07/22 ($)	Purchases since 01/07/22 (%)	Amount invested at 31/12/22 ($)	Amount invested at 31/12/22 (%)
Yes	31,020,000	55%	346,999,306	82%
No	25,000,000	45%	80,000,000	18%
	56,020,000		426,999,306

It is noted that Council has recently performed a review of all financial institutions with which investments are held, in relation to the categorisation of whether they fund fossil fuels, against the information reported via the “marketforces.org.au” website. As a result of this review, ICBC has been re-classified to the “Yes” category.

When investing, Council seeks and receives multiple quotes from a range of financial institutions across the different ratings spectrum. In the instance that a bank is not lending to the fossil fuel industry and they are offering the highest rate, and comply with the various Policy risk limits, Council preferences that bank, in accordance with the Investment Policy.

The weighted average yield from investments in institutions funding fossil fuels is currently lower than investments which do not fund fossil fuels, which is reflective of the investment portfolio performance over a period of time, rather than rates attached to individual investments taken out at a point in time.

During the COVID-19 pandemic, and because of the RBA's monetary policy, we were experiencing an 'abnormal' marketplace where the higher rated ADIs, often those lending to the fossil fuel industry, were offering a higher rate than the lower rated ADIs. Pre-pandemic however, Council locked in higher yields with the BBB rated banks given they were generally offering higher rates than the higher rated banks (i.e. a ‘normal’ market). This is the reason why the "BBB" rated category’s current yield is still higher than the higher rated banks - it is largely driven by the investments placed prior to the pandemic. It does not necessarily mean however that an investment taken out today with a “BBB” rated ADI will have the highest rate.

The following graph shows total investments on a rolling 12-month basis:

The following graph shows the maturity profile of the current investment portfolio, (excluding the cash management account which is at call):

The above profile shows that Council’s investment maturities are well balanced across the next 5-year horizon. The average interest rate of those maturities falling in the current year illustrates the impact of longer term investments made in higher rated products prior to the interest rate decline during the COVID-19 pandemic. This has meant that returns have been somewhat protected against falling rates and the portfolio performed strongly in spite of this. From next year on we can see that the average interest rate of maturities falls. This reflects the declining interest rates of the last two years, noting none-the-less that Council protected the portfolio against even lower interest rates than illustrated here by taking advantage of longer term and higher rated products, thereby still maintaining average returns above industry benchmarks. Moving forward it will be important to take advantage of rising interest rates if re-investing maturing investments, whilst also balancing with a level of risk mitigation against a potential recession environment.

Options

This is an information report.

Community Engagement and Internal Consultation

Council uses the services of an independent financial advisor, on an ongoing basis with investments. Council obtains regular updates regarding market activities positions from various institutions.

Planning and Policy Implications

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

Financial and Economic Implications

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

Council’s total investment portfolio performance for the financial year to date is 0.46% below the benchmark (1.87% against 2.33%) and year to date income is 81% of the total annual budget.

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

The overall investment income will be adjusted at financial year end by the total interest refunded on repayment of bonds. As Council constantly receives and refunds bonds, it is difficult to accurately determine the quantum of these refunds.

Certification

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

Nicole Spencer

Responsible Accounting Officer

Attachments

1. Port Macquarie-Hastings Council Investment Report - December 2022

2 . Port Macquarie-Hastings Council Portfolio Valuation - December 2022

AGENDA Ordinary Council

16/02/2023

Item: 10.10

Subject: Investments - January 2023

Presented by: Business and Performance, Keith Hentschke

Alignment with Delivery Program

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

RECOMMENDATION

That Council note the Investment Report for the month of January 2023.

Executive Summary

· Total funds invested as at 31 January 2023 was $416,065,878

· Interest for the month of January was $786,520.

· The year-to-date investment income of $4,971,331 represents 96% of the total annual investment income budget of $5,173,100.

· Council’s total investment portfolio performance for the financial year to date was 0.56% below the benchmark (1.90% against 2.46%), benchmark being the Bank Bill reference rate as at 31 January 2023.

The following outlines the significant points identified in the attached Monthly Investment Report (Attachment 1), as provided by Council’s investment advisors:

· Over the past 12 months, the portfolio has returned 1.74% p.a., outperforming bank bills by 0.22% p.a.

· For now, the RBA continues to signal that it expects to increase interest rates further over the period ahead, with up to 2-3 hikes already largely priced into the market by Q2-Q3 2023, taking the cash rate up to 3.75%. Thereafter, noting the lags in monetary policy, a pause around the end of Q2-Q3 is likely whilst the RBA monitors the economic data.

· Council’s exposure to institutions that fund fossil fuels is approximately 83% of the total portfolio.

· Port Macquarie-Hasting Council remains amongst the best performing Councils in NSW where deposits are concerned, earning on average, $1.89m in additional interest income compared to its peers.

Discussion

The attached investment report and portfolio (Attachment 2) provides detailed information on the performance of Council’s investment portfolio.

Overview

Development Activity

Water and Sewer

Current Investments

Council is required to undertake investments in accordance with section 625 of the Local Government Act 1993. This report provides details of Council’s investments, and certifies that all funds that Council has invested as at 31 January 2023, comply with this Act. All investments have been made in accordance with the Act and Regulations, and Council’s Investment Policy.

As at 31 January 2023, the investments held by Council totalled $416,065,878 and were attributed to the following funds:

General Fund*	184,129,954
Waste Fund	23,499,401
Water Fund	140,967,280
Sewer Fund	65,780,015
Broadwater	1,626,818
Sanctuary Springs	62,410
	416,065,878

*Includes funds collected from development that must be expended in relation to adopted contribution plans. Also includes funds collected for works on the Port Macquarie Town Centre Master Plan.

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

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

It is noted that there is a variance between the total investments held as per this report, ($416,065,878), and total investments held as per Imperium’s attached monthly report ($416,070,208). This is due to the fact that Council’s accounting policy treatment means that floating rate notes (FRNs) are held at amortised cost, whereas they are included at fair value in Imperium’s report.

In relation to Council’s exposure to financial institutions that fund fossil fuels, the following table provides a summary:

Financial institutions funding fossil fuels	Purchases since 01/07/22 ($)	Purchases since 01/07/22 (%)	Amount invested at 31/01/23 ($)	Amount invested at 31/01/23 (%)
Yes	31,020,000	55%	342,065,878	83%
No	25,000,000	45%	74,000,000	17%
	56,020,000		416,065,878

Staff are currently undertaking a broader review in conjunction with Imperium Markets against the information reported via the “marketforces.org.au” website. Commentary on fossil fuel investments is provided by Imperium Markets in the attached Monthly Investment Report (Attachment 1).

The following graph shows total investments on a rolling 12-month basis:

The value of Council’s investments as at 31 January 2022 was $11m lower than

31 December 2022 due largely to the timing of maturities at month end - these are expected to be reinvested in early February.

The following graph shows the maturity profile of the current investment portfolio, (excluding the cash management account which is at call):

Options

This is an information report.

Community Engagement and Internal Consultation

Council uses the services of an independent financial advisor, on an ongoing basis with investments. Council obtains regular updates regarding market activities positions from various institutions.

Planning and Policy Implications

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

Financial and Economic Implications

Council’s total investment portfolio performance for the financial year to date is 0.56% below the benchmark (1.90% against 2.46%) and year to date income is 96% of the total annual budget.

Certification

Nicole Spencer

Responsible Accounting Officer

Attachments

1. Port Macquarie-Hastings Council Investment Report - January 2023

2. Port Macquarie-Hastings Council Portfolio Valuation - January 2023

AGENDA Ordinary Council

16/02/2023

Item: 10.14

Subject: 2022-2026 Delivery Program and 2022/23 Operational Plan - Six Month Progress Report July to December 2022

Presented by: Business and Performance, Keith Hentschke

Alignment with Delivery Program

1.1.4 Provide easy to understand and accessible community reporting.

RECOMMENDATION

That Council note the 2022-2026 Delivery Program and 2022 - 2023 Operational Plan Six Month Progress Report July to December 2022.

Executive Summary

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

The progress report allows Council and the community to know what action has been undertaken relative to the objectives contained within the 2022-2026 Delivery Program.

Attachment A provides a Delivery Program Summary that serves as a reference document for Councillors and the community to easily identify outcomes and delivery across the local government area. It provides information on actions, activities and projects and outlines achievements against the set Delivery Program objectives.

Discussion

The Delivery Program outlines the Councillors’ commitments to the Port Macquarie-Hastings community during their term of office. Objectives in the Delivery Program represent the outcomes Council aims to achieve and serve as a guide in the development of the annual Operational Plan. The Operational Plan sets out the actions, activities and projects that will be undertaken each financial year to deliver the overall objectives in the Delivery Program and ultimately contribute to achieving the vision and goals outlined in the long term Community Strategic Plan.

In a broad context, the Delivery Program enables Council to deliver the community’s aspirations for the future, as described in the Imagine2050 Community Strategic Plan.

Six monthly reporting allows Council and the community to see the progress made in delivering outcomes to achieve the Delivery Program objectives.

The Delivery Program objectives appear in each of the six Community Themes outlined below:

· Authentic and High Performing

· Connected

· Environmentally Sustainable

· Liveable

· Resilient

· Thriving

The six monthly reporting process focuses on the progress that has been made against actions, activities and projects that have been undertaken by Council as at 31 December 2022. It provides a snapshot of Delivery Program implementation, assessing the first six months of the 2022-2023 Operational Plan.

The 2022-2023 Operational Plan contains a total of 537 actions with 465 actions On Track and an additional 20 actions completed. This equates to an overall delivery of 90% for the reporting period.

The following graph and accompanying table provide a trend analysis of the total number of Operational Plan actions and percentage of actions identified as On Track by quarter over the previous three reporting years.

Status	Quarter 1		Quarter 2		Quarter 3		Quarter 4
2019/20 On Track	375	88%	375	88%	375	86%	375	80%
2020/21 On Track	521	94%	527	96%	527	93%	464	86%
2021/22 On Track	430	89%	439	91%	443	83%	453	85%
2022/23 On Track	537	93%	537	90%

Outcomes against Delivery Program strategies are detailed in Chart 1 below with the accompanying table detailing the total number of Operational Plan actions and their status by theme for the 2022-2023 Operational Plan to 31 December 2022.

Chart 1

Community Theme	Total	On Track	Overall Delivery
Authentic & High Performing	124	119	96%
Connected	83	73	88%
Environmentally Sustainable	62	58	94%
Liveable	199	170	85%
Resilient	44	41	93%
Thriving	25	24	96%
Total	537	485	90%

Details of progress achieved against each Operational Plan action are provided in the following attachments:

Attachment A - Delivery Program Summary

This new report has been designed as a visual summary for councillors and the community to better depict Council’s achievements and progress against the 2022-2026 Delivery Program.

Attachment B - Six Month Progress Report July to December 2022

This report provides full details on all Operational Plan actions with commentary on progress and status for each. It also shows the links to the Community Strategic Plan, Delivery Program Objective and Operational Plan Action that is being delivered.

Attachment C - Six Month Exception Report

This report provides details of all actions that have been identified as Off Track as at 31 December 2022.

There are a number of Actions that have been identified as not progressing in the current Operational Plan as outlined in the Table below:

Service	OP Ref	Action	Period Comments
Airport	AP 04_T 1.3	Undertake asset planning, analysis and reporting activities across the asset management lifecycle for the Port Macquarie Airport in line with the Asset Management Framework and Port Macquarie Airport Master Plan.	Delivery of this Operational Plan Action is pending development of the Asset Management Framework (refer to OP action AM 12_AHP 4.2), which is currently underway. Current Asset Management plans are out of date and therefore cannot practically be updated for 2022/23. Airport maintenance carried out as required in accordance with regulatory requirements and business needs.
Council & Community Facilities	CCF 02_L 3.2	Undertake Asset Planning, analysis and reporting activities for Community & Council Facilities in line with the Asset Management Framework across the asset management lifecycle including: - Data analysis to assist planning - Assessments of asset risk, performance and cost - Reporting on asset performance and any asset backlog	Delivery of this Operational Plan Action is pending development of the Asset Management Framework (refer to OP action AM 12_AHP 4.2), which is currently underway. Current Asset Management plans are out of date and therefore cannot practically be updated for 2022/23. Asset Planning has commenced with an Asset Management steering group established.
Economic Development	ED 12_T 1.3	Port Macquarie Hastings Destination Eco Certification (in conjunction with Ecotourism Australia and local stakeholders)	This Operational Plan action will not be delivered during 2022/23 due to lack of support from National Parks and Wildlife Services for Councils submission.
Glasshouse	GH 03_AHP 4.2	Undertake asset planning, analysis and reporting activities across the asset management lifecycle for the Glasshouse in line with the Asset Management Framework and Glasshouse Asset Management Plan	Delivery of this Operational Plan Action is pending development of the Asset Management Framework (refer to OP action AM 12_AHP 4.2), which is currently underway. Current Asset Management plans are out of date and therefore cannot practically be updated for 2022/23. Glasshouse equipment and asset maintenance/ refurbishment carried out as required to meet business needs.
Project Delivery	CCF 07_L 3.2	Port Macquarie Community Centre - Design and construction	This Operational Plan cannot be delivered due to resourcing availability within the project management team. This project will be reallocated and proposed for 2023/24 financial year. A project brief and scope will be developed.
Project Delivery	TR 48_C 1.1	Timber Bridge Replacement Program - Bridge 178 Mundays Lane	Due to the timeframes involved in following the legislation planning/ environmental approval pathways, the Timber Bridge replacement program cannot be delivered in the Fixing Country Bridges Program delivery timeframes. Project to be removed from the 2022/23 Operational Plan via a monthly budget adjustment.
Project Delivery	TR 49_C 1.1	Timber Bridge Replacement Program - Bridge 179 Mundays Lane	Due to the timeframes involved in following the legislation planning/ environmental approval pathways, the Timber Bridge replacement program cannot be delivered in the Fixing Country Bridges Program delivery timeframes. Project to be removed from the 2022/23 Operational Plan via a monthly budget adjustment.
Project Delivery	TR 50_C 1.1	Timber Bridge Replacement Program - Bridge 181 Mundays Lane	Due to the timeframes involved in following the legislation planning/ environmental approval pathways, the Timber Bridge replacement program cannot be delivered in the Fixing Country Bridges Program delivery timeframes. Project to be removed from the 2022/23 Operational Plan via a monthly budget adjustment.
Project Delivery	TR 52_C 1.1	Timber Bridge Replacement Program - Old School Road Bridge, Herons Creek	Project to be deferred to outer years as no funding currently exists.
Sewerage	S 03_L 2.2	Undertake Asset Planning, analysis and reporting activities for Sewerage Scheme Assets in line with the Sewerage Scheme Asset Management Framework across the asset management lifecycle including: - Data analysis to assist planning - Assessments of asset risk, performance and cost - Reporting on asset performance and any asset backlog	Delivery of this Operational Plan Action is pending development of the Asset Management Framework (refer to OP action AM 12_AHP 4.2), which is currently underway. Current Asset Management plans are out of date and therefore cannot practically be updated for 2022/23. Asset maintenance plans and programs are being developed based on adopted budgets and operational priorities for sewer.
Sewerage	S 37_L 2.2	Camden Haven Sewer Pump Station #9 - Catchment Reline	This Operational Plan action will not be delivered due to supply cost increases. This project will be deferred out of the 2022/23 Operational Plan via the Quarterly Budget Review in the coming months.
Sewerage	S 38_L 2.2	Port Macquarie Sewer Pump Station #29 - Catchment Reline	This Operational Plan action will not be delivered due to supply cost increases. This project will be deferred out of the 2022/23 Operational Plan via the Quarterly Budget Review in the coming months.
Sports & Recreation	SR 05_L 3.1	Undertake asset planning, analysis and reporting activities for Sports & Recreation assets across the asset management lifecycle in line with the Asset Management Framework including: - Data analysis to assist planning - Assessments of asset risk, performance and cost - Reporting on asset performance and any asset backlog	Delivery of this Operational Plan Action is pending development of the Asset Management Framework (refer to OP action AM 12_AHP 4.2), which is currently underway. Current Asset Management plans are out of date and therefore cannot practically be updated for 2022/23.
Sports & Recreation	SR 67_L 3.1	Dunbogan Reserve - Upgrade	Project not progressing at this stage. Council endorsed fund reallocation and will revisit the project in future years.
Stormwater, Drainage & Flooding	SDF 02_L 2.2	Undertake asset planning, analysis and reporting activities for Stormwater assets in line with the Asset Management Framework across the asset management lifecycle including: - Data analysis to assist planning - Assessments of asset risk, performance and cost - Reporting on asset performance and any asset backlog	Delivery of this Operational Plan Action is pending development of the Asset Management Framework (refer to OP action AM 12_AHP 4.2), which is currently underway. Current Asset Management plans are out of date and therefore cannot practically be updated for 2022/23. Works to be partly carried over into 2023/24 based on progress with the Stormwater Strategy and the organisational review of asset management practices and plans.
Transport	TR 03_C 1.1	Undertake asset planning, analysis and reporting activities for Transport assets in line with the Asset Management Framework across the asset management lifecycle including: - Data analysis to assist planning - Assessments of asset risk, performance and cost - Reporting on asset performance and any asset backlog	Delivery of this Operational Plan Action is pending development of the Asset Management Framework (refer to OP action AM 12_AHP 4.2), which is currently underway. Current Asset Management plans are out of date and therefore cannot practically be updated for 2022/23. This project is not scheduled to start until Q3 and is planned to be finalised in Q3 of the 2023/24 Operational Plan year.
Transport	TR 92_C 1.1	Kendall Town Centre Master Plan works - Design	Preliminary scoping and project planning for road design has commenced. Funding has no associated income source meaning the project is unable to progress and is recommended for consideration in future Operational Plan development pending priority.
Waste Management	WM 05_ES 2.2	Undertake asset planning, analysis and reporting activities for Waste assets in line with the Asset Management Framework across the asset management lifecycle including: - Data analysis to assist planning - Assessments of asset risk, performance and cost - Reporting on asset performance and any asset backlog	Delivery of this Operational Plan Action is pending development of the Asset Management Framework (refer to OP action AM 12_AHP 4.2), which is currently underway. Current Asset Management plans are out of date and therefore cannot practically be updated for 2022/23. Asset maintenance plans and programs are being developed based on adopted budgets and operational priorities for waste.
Waste Management	WM 12_ES 2.2	Cairncross Waste Management Facility (WMF) - Waste transfer station extension	This Operational Plan action is dependent on the Waste Strategy and associated Cairncross Master planning being developed to ensure a strategic design for the entire facility. This project will be deferred into outer year's budget.
Water Supply	WS 04_L 2.2	Undertake asset planning, analysis and reporting activities for water network assets in line with the Asset Management Framework across the asset management lifecycle including: - Data analysis to assist planning - Assessments of asset risk, performance and cost - Reporting on asset performance and any asset backlog	Delivery of this Operational Plan Action is pending development of the Asset Management Framework (refer to OP action AM 12_AHP 4.2), which is currently underway. Current Asset Management plans are out of date and therefore cannot practically be updated for 2022/23. Asset maintenance plans and programs are being developed based on adopted budgets and operational priorities for water.
Water Supply	WS 09_L 2.2	Camden Haven Recycled Water Review	This Operational Plan action will not be delivered due to impacts of limited project management resourcing currently assigned to other priority projects, being the Recycled Water commissioning project to meet Environmental Protection Authority requirements. This project will be deferred out of the 2022/23 Operational Plan via the Quarterly Budget Review in the coming months.
Water Supply	WS 29_L 2.2	Kew (Area 15) Reservoir	This Operational Plan action will not be delivered due to the impacts of limited resourcing. This project will be deferred out of the 2022/23 Operational Plan via the Quarterly Budget Review in the coming months.
Water Supply	WS 44_L 2.2	Comboyne Water Treatment Plant - Process upgrade	This Operational Plan action will not be delivered due to other higher operational priorities and impacts of limited resourcing. This project will be deferred out of the 2022/23 Operational Plan via the Quarterly Budget Review in the coming months.
Water Supply	WS 56_L 2.2	Increase capacity at Telegraph Point Clearwater Storage	This Operational Plan action will not be delivered due to impacts of limited project management resourcing. This project will be deferred out of the 2022/23 Operational Plan via the Quarterly Budget Review in the coming months.

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 and Internal Consultation

Internal consultation was undertaken with:

· Chief Executive Officer, Directors, Executive and Group Managers;

· All staff reporting against the 2022/23 Operational Plan;

· Business Performance Analyst (Corporate Reporting);

· Planning and Reporting Development Officer;

· Planning and Reporting Officer.

Planning and Policy Implications

This report complies with the statutory obligations contained within Local Government Act and is in line with the requirements of the NSW Integrated Planning and Reporting Framework.

Financial and Economic Implications

There are no direct financial implications in relation to this report. Quarterly Budget Review Statements align with the reporting period referenced in this report.

Attachments

1. Attachment A: Delivery Program Summary

2. Attachment B: Six Month Progress Report July to December 2022

3 . Attachment C: Six Month Exception Report

AGENDA Ordinary Council

16/02/2023

Item: 11.01

Subject: Ferry Operations

Presented by: Community Infrastructure, Robert Fish

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. Note the information on ferry patronage and ‘left on bank’ data provided within the report, including statistics following the implementation of the extended operating hours from mid-2021 of the Hibbard Ferry, which increased by 1.25 hours per day Monday to Friday (6.00am-6.30am and 2.00pm-2.45pm).

2. Continue to monitor ferry patronage.

3. Note that ferry operations cost the Port Macquarie-Hastings community $824,000 over the 2021/2022 financial year and that key resident concessional fares for ferry services have remained unchanged since 2015/2016.

4. Review fees and charges annually seeking to progressively reduce the operating loss of the ferry operations, commencing from the 2023/2024 financial year via the 2023/2024 fees and charges to be drafted as a part of the Integrated Planning and Reporting suite of documents.

5. Maintain the Hibbard Ferry operating hours that were introduced in 2021 and fund the additional $30,000 ferry operating expense via an increase in fees and charges from 2023/2024.

6. Increase the period of two-person operation of the Settlement Point Ferry to include the hours of 10.00am-3.00pm Monday to Friday to improve navigation safety and enhance operating efficiency.

7. Trial for a period of two months a one-person operation on Settlement Point Ferry between the hours of 7.00am-7.45am and 5.15pm-6.00pm Monday to Friday as these hours are expected to be manageable with a one-person operation.

8. Note that implementation of parts 6 and 7 of the recommendation will result in a two-person operation of the Settlement Point Ferry between the hours of 7.45am-5.15pm Monday to Friday.

9. Receive a report at the conclusion of the trial period for the purposes of determining whether the amended two-person operating hours should be made permanent.

10. Advocate with Transport for NSW with regard to a contribution for ferry operations to reduce the financial burden of the service on the General Fund of Council.

Executive Summary

Hibbard Ferry operating hours were extended on weekdays from mid-2021. This report provides a summary of vehicle movements and ‘left on bank’ (LOB) statistics following implementation of these extended hours for ferry operations and options for the funding of the extended hours. These are provided per the resolutions of Council at the May and August 2021 Ordinary Meetings to report back on these items.

Ferrymen Pty Ltd, current contractor for the ferry operations, have provided a report and proposal seeking Council approval to increase its services to a two-person operation on the Settlement Point Ferry to enhance the safety of the service. This follows a review of their current practices, risk assessment, and recommendations provided by Australian Maritime Safety Authority (AMSA). This report advises on options that Council may consider and the associated financial implications.

Ferry operations are at a significant cost to Council, with the operating loss funded via the General Fund. Operating costs are growing as a result of annual cost escalation and service improvements, however fees and charges have not offset this growth in cost. Of note resident concessional fares have remained unchanged since 2015/2016, whilst standard full fee fares have increased periodically. This report provides information on the ferry service cost and recommendations for the review of fees and charges.

Discussion

Background Information

Multiple reports to Council, a Mayoral Minute and Notice of Motion occurred over the period from December 2020 to August 2021, primarily with regard to the Hibbard Ferry operating hours, ferry utilisation and annual ferry operating costs/loss.

At the 19 May 2021 Ordinary Council Meeting, Council resolved:

That Council:

1. Note the information provided in this report.

2. Note the community feedback received as part of the recent ferry engagement survey.

3. Note the average annual operating deficit of the ferry services over the last four years was $941,400, and that any change in service level should consider an increase in ferry fees to cover this increased expense.

4. Note that a two-person operation on the Settlement Point Ferry may be required to meet Australian Maritime Safety Authority (AMSA) navigation requirements, which can also provide efficiency in loading and travel times. This would increase annual running costs by $66,250 and require an approximate 10% increase in fees to recover this expense.

5. Upon return to service of the Hibbard Ferry, extend the Hibbard Ferry hours of operation to conduct a six-week trial to extend the Hibbard Ferry hours of operation to 6.00am-9.50am and 2.00pm-6.50pm weekdays (Additional 1 hour 15 minutes).

6. Continue to monitor the vehicle movements and vehicles Left on Bank (LOB) and report these back to a future Council meeting.

7. Note that a permanent increase to the Hibbard Ferry hours of operation to 6.00am-9.50am and 2.00pm-6.50pm weekdays would increase annual running costs by $22,640.

8. Monitor the condition and erosion of the road access to the Hibbard Ferry, north side of Hastings River, and consider the need for bank stabilisation and/or road widening.

As per item 5 of this resolution, a six-week trial to extend the Hibbard Ferry hours of operation began on 15 June 2021 and was due to conclude on 7 August 2021.

During the trial period, a Notice of Motion was tabled at the 4 August 2021 Ordinary Council Meeting, and Council resolved:

That Council:

1. Note the intention of the resolution at Item 12.03 of the 19 May 2021 Ordinary Council Meeting, and extend the hours of operation of the Hibbard Ferry to 6.00am-9.50am and 2.00pm-6.50pm weekdays.

2. Fund the extended hours from the Ferry Reserve and reconsider the funding source at the time of the next report on ferry operations.

3. Note that the report to Council on 19 May 2021 indicated that the annualized cost of this option was $22,400.

Since this resolution of Council, the extended hours of operation of the Hibbard Ferry have remained in place. The additional cost burden of the extended hours has a negative impact on Council’s General Fund position by approximately $30,000 per year. It is noted that the indicated cost ($22,400) in the resolutions of Council above are for the additional costs under the ferry operations contract, however there are also additional running costs of the ferry for the extended hours of operation (for example: maintenance, fuel and licensing).

Current Service Hours, Standards and Capacity

Settlement Point Ferry operates 24/7, and has a 21 vehicle (car) capacity.

Hibbard Ferry operates between 6.00am-9.50am and 2.00pm-6.50pm Monday to Friday, 8.00am - 6.50pm weekends and public holidays. During school holidays the Hibbard Ferry hours are extended to 6.00am-6.50pm Monday to Friday. Hibbard Ferry has a 15 vehicle (car) capacity.

Prior to mid-2021 the Hibbard Ferry operated from 6.30am-9.50am and 2.45pm-6.50pm Monday to Friday, 1.25 hours per day less than the current operating hours. Weekends, public holidays and school holiday periods were per the current operating hours.

The current service standard for vehicles travelling bank to bank is under 23 minutes. This is calculated based on an average loading and transit time of 7.5 minutes per trip. For example, if a car arrived at the bank and just missed the ferry, it would take the ferry approximately 7.5 minutes to cross, then 7.5 minutes to return to the original bank, and load the waiting car to convey it across the river in another 7.5 minutes (totaling 22.5 minutes). This service standard is aimed to be met for 95% of the vehicles transported.

Based on the current service standard, it is considered a queuing delay when the ferry has maximized its load capacity, and a vehicle has been ‘left on bank’ (LOB) for more than one ferry return. Therefore, a LOB occurrence arises when the ferry has a full load and more than the ferries capacity remains on bank after loading, with the first car beyond the ferries capacity remaining on bank constituting a queueing delay. While the Settlement Point ferry has a 21 car capacity, often a full load will comprise of caravans, trailers or larger heavy vehicles.

There are a number of factors that can have an impact on the service level including:

· “Peak Hour” in the morning and afternoons

· School day delay for 8am connection with Busways bus service (ferry leaves at specific time for this connection)

· Monthly ticket sales increases cashless transactions

· Traffic incidents

· Ferry slipping

· Mechanical breakdowns

· Flood and other disasters

· Events

· School or public holidays with increased tourist activities

· Local development

· Council operational activities

At times there can be a number of uncontrollable factors that align and can cause queuing delays. These situations are difficult to predict, and are considered normal operational issues that vehicular ferries are subject to. Recorded data has shown these occurrences generally return to normal service standard within 1.5-2 hours.

Ferry Patronage and Vehicles Left on Bank Data and Analysis

Vehicle movement data on weekdays (not holiday periods) for the ferries over the 2021/2022 period is outlined below and in the attachment, and for selected months (February, June, November and December) through 2022 in the attachment. The periods of the data follow from the commencement of the extended operating hours of the Hibbard Ferry, with the data being provided to inform Councillors of the Hibbard Ferry use since those changes came into effect. Also for the awareness of Councillors, the attachment includes a brief summary of ferry usage over the school holiday period from 21 December to 31December 2022.

Of note from analysis of usage data over the 2021/22 period:

· Of the 64,883 Settlement Point Ferry trips, 31 trips (179 vehicles) recorded more than the ferries capacity LOB, or 0.05% of the total trips. All the above instances were between 11.30am-2.30pm, which for days outside of weekends/holidays there is one operator on the ferry only. 75% of the LOB occurrences were during the months of December and January likely resulting from holiday traffic.

· Uncontrollable factors that contribute to delays are generally resolved within 2hrs.

· Settlement Point Ferry carries on average 3 vehicles per load between 6.00am-6.30am Monday to Friday, and Hibbard Ferry carries 4 vehicles (the extended

morning hours). Prior to mid-2021, 7 vehicles on average were using the Settlement Point Ferry over this period, indicating the extended morning Hibbard Ferry operating hours has moved approximately 4 vehicles per trip from the Settlement Point Ferry to use the Hibbard Ferry. Settlement Point Ferry use has accordingly dropped below 15% on average for this period.

· Settlement Point Ferry carries on average 8 vehicles per load between 2.00pm-2.45pm Monday to Friday, and Hibbard Ferry carries 4 vehicles (the extended afternoon hours). Prior to mid-2021, 12 vehicles on average were using the Settlement Point Ferry over this period, indicating the extended afternoon Hibbard Ferry operating hours has moved approximately 4 vehicles per trip from the Settlement Point Ferry to use the Hibbard Ferry. Settlement Point Ferry use has accordingly dropped below 40% on average for this period.

The intention of the suggested six-week trial in the May 2021 Ordinary Council Meeting report on ferry operations, noting Council resolved to permanently increase the hours at the August 2021 Ordinary Council Meeting, was to improve travelling time for commuters, and reduce the potential for vehicles to be LOB. This followed feedback from community consultation at the time that indicated residents wanted an improved level of service with no additional cost. Data and information on ferry usage provided at the time of the May 2021 report did not provide strong evidence to support the increase in hours.

The data above and attached indicates that there continues to be no evidence based on usage to support the extended operating hours at Hibbard Ferry (6.00am-6.30am and 2.00pm-2.45pm). Capacity exists during those times at the Settlement Point Ferry to service the small number of vehicles using Hibbard Ferry, without experiencing extended wait times.

The primary benefit of the extended Hibbard Ferry hours is for residents in the Riverside Drive area who have a more convenient option to get to their destination, in particular if seeking to travel to the Hibbard area or to the west of Port Macquarie.

Accordingly, Council may wish to further review the hours of operation of the Hibbard Ferry in order to reduce ferry operating costs and to better align the service with usage. Options that Council may wish to consider are outlined within the Options section of this report, including the associated financial impact. This section of the report also outlines options for the ongoing funding of the extended operating hours of the Hibbard Ferry, which has to date had a negative impact on the General Fund of approximately $30,000 per year.

Settlement Point Ferry Operating Risk - Two-Person Operation Need

Under the Marine Safety (Domestic Commercial Vessel) National Law Act 2012, Schedule 1 Marine Order 503 (Certificate of Survey-National Law) 2018, Council’s ferries are classified as a class E1 Vessel, which would normally require two full time operators while the ferries are in operation.

For the ferries to operate, Council must comply with the regulations and be granted a ‘Certificate of Survey’, which expires every five years. Within the five years, there are conditions that need to be met for the certificate to be renewed on an annual basis. Council has an exemption under the ‘Certificate of Survey and Operation’ to work with a single operator, which has been the case for over 30 years. A condition of this is that a ‘Safety Management Plan’ must be in place for the safe operation of the vessel by the one operator.

Advice was provided in this regard within the report to the May 2021 Ordinary Meeting of Council. At that time Council noted within the resolution that for the Settlement Point Ferry there may be a need to meet maritime safety law. The resolution further noted the opportunity to improve efficiency in loading and travel times via a two-person operation and that this would increase operating costs.

There have been three reportable incidents investigated with regard to the Settlement Point Ferry operation by NSW Maritime, in 2006, 2011 and 2021. All occurred at a time of single person operation and during a period of high ferry and waterway use. The outcome of the 2021 investigation provided three options to address immediate safety concerns:

1) Provide a second operator, so sighting of the river on the port and starboard sides complies with regulations.

2) Design a way to load large trucks so the 112.5 degree sighting angle on the starboard side by the operator can be maintained.

3) Place CCTV camera and screens to assist in the viewing of river traffic while moving north and south.

Council installed CCTV cameras and screens, which resulted in the withdrawal of the defect notice, however CCTV loses clarity over distance and the sighting of small craft close to the ferry around the boat shed on the Settlement Point side remains an issue. The ferry operator has also sought to load heavy vehicles at the rear end of the ferry where possible to provide for the maximum sighting angle.

In response to the 2021 incident, and request by AMSA, Council’s contractor Ferrymen Pty Ltd reviewed their operational risk assessment. The report recommended:

‘To reduce risks to an acceptable level, we propose Council increases manning levels from one (1) to two (2) during peak periods between 10am–3.00pm Monday to Friday, representing an extra 5hrs per day, or 25hrs per week. This will meet the core compliment outlined in the National Standard for Commercial Vessels for all peak periods.’

The current operating hours for a two-person operation on Settlement Point Ferry are (noting the Hibbard Ferry is a one-person operation at all times when operating, except when the Settlement Point Ferry is out of service):

· 7:00am-10:00am and 3:00pm-6:00pm weekdays.

· 9.00am-5.00pm weekends.

The second operator is employed during peak hours of operation to assist with the increase in vehicular traffic, improving loading and commuting times for passengers, and enhancing ferry navigation safety. The second operator also supports the supervision of school children (approximately 18 - 25 children) who cross at 8am to connect with school buses on Settlement Point Road.

Within the latest tender for the Operational Contract, which commenced July 2020, Council adopted to support an extension of two-person operations to include weekends and the Christmas holiday period.

During two-person operating hours at Settlement Point, the ferry completes a river crossing (including loading and unloading) in approximately 7.5 minutes on average. 2021/2022 data indicates during the period between 10.00am-3.00pm, with only a one-person operation, crossing times increase to approximately 9.8 minutes per trip on average. It should be acknowledged that the introduction of the cashless payment system option has resulted in a minor increase in transit times.

The current manning level of both ferries, other than the five hours between 10.00am -3.00pm weekdays on Settlement Point Ferry, is considered to be sufficient to cover all aspects of the regulations and provide a suitable Safety Management System for the Operational Contract. During the 10.00am-3.00pm period the prevalence of heavy vehicles is higher and waterway use/activity is increased, the two key aspects of the navigational risk. In addition to scanning the river and skippering the vessel, the operator has other duties which include accounting for money, restocking tickets and monitoring ferry patrons.

It is noted that heavy vehicles do not use the Hibbard Ferry as they are unable to be loaded as a result of the ramp angle onto the ferry. The required 112.5 degree sighting angle is therefore able to be maintained by the operator meaning the operating risk is considerably less.

Within the Options section of this report, options are outlined for Council to consider to address the increased risk for the Settlement Point Ferry operation over these hours (10.00am-3.00pm weekdays). This includes a potential brief trial period and outlines the associated costs of extending the two-person operating hours of the Settlement Point Ferry.

The benefits of a two-person operation over increased hours on Settlement Point Ferry include:

· Greater compliance with AMSA National Law (i.e. not reliant on exemption).

· Further address recommendations from reportable incident investigation.

· Acknowledge and support Ferrymen Pty Ltd request.

· Provide additional safety measures for the community and waterway users.

· Improve loading and commuting times.

Options

Within this report there are three aspects of ferry operations that require Council consideration and decision. These are outlined below:

Hibbard Ferry Operating Hours

The additional hours of operation of the Hibbard Ferry (6.00am-6.30am and 2.00pm-2.45pm Monday to Friday) have now been in place for in excess of 18 months. The additional hours increase ferry operating costs by approximately $30,000 per year. Significant community interest exists with regard to ferry operating hours and fares.

Council may consider the following options:

· Maintain the current operating hours, which have been in place since mid-2021.

· Revert to the previous operating hours that were in place prior to mid-2021, which would see a reduction in operating hours of the Hibbard Ferry of 1.25hrs per day Monday to Friday in the early morning and early afternoon and result in an operating cost saving of $30,000.

· Alternative operating hours as determined.

This report provides information on ferry patronage since mid-2021 for Council’s consideration and recommends Council note this information. An amendment to the Hibbard Ferry operating hours is not included within the recommendation, however based on usage data Council may wish to review the operating hours.

Should the Hibbard Ferry operating hours remain unchanged, Council will need to consider the method of funding the additional $30,000 in operating costs that resulted from the extension of hours in 2021. At present the General Fund is funding the revised hours and the overall deficit of the ferry operation. No change or opportunity exists to address this status, with the exception of higher user fares. Given the extended operating hours are to the benefit of ferry users, it is recommended that the additional $30,000 in operating costs be offset by increased fares from the 2023/2024 financial year via the draft Fees and Charges to be included within the Integrated Planning and Reporting suite of documents for 2023/2024.

Settlement Point Two-Person Ferry Operations

Extension of the Settlement Point Ferry two-person operating hours for the 10.00am-3.00pm period is recommended as outlined within the Discussion section of this report. This will address navigational risk and compliance, whilst also enhancing operating efficiency thereby improving the service speed for ferry users.

Alternatively, Council may leave the ferry operator numbers unchanged and continue to monitor hazards and the performance of the ferry operations. Based on the inherent risk that exists this is not recommended.

For the additional 5 hours of operation Monday to Friday recommended, the additional annual cost shall be approximately $80,000, which will grow annually. The additional cost either needs a funding source or to be offset by increased fees and charges, or reduction in operating costs of other aspects of the ferry service.

A potential reduction to the operating costs to partially offset the $80,000 increase would be to revert to single person ferry operations over the hours of 7.00am-7.45am and 5.15pm-6.00pm, saving approximately $24,000. A two-month trial of such an arrangement is recommended in this report.

Supporting this change includes:

· The ferry operations contractor will be able to better manage balancing permanent staff with casual labour and compliance with applicable Award conditions.

· Since 2014/2015, when various ticket options were introduced to reduce individual ticket sales, ticket transactions via the ferry operators has reduced by 50%, thereby resulting in a significant operational improvement. Implementation of two operators prior to 2014/2015 primarily related to expediting the ticket sale process, a need that is now considerably diminished.

· Ferry usage volumes can be managed via a single operator, based on the 2021/2022 average of 6.3 vehicles per southbound trip in the morning for the 7.00am-7.45am period and 6.5 vehicles per northbound trip in the afternoon for the 5.15pm 6.00pm period.

· Ferry usage by heavy vehicles during these hours, which greatly contribute to the navigational risk, is very low. During the morning hours of 7.00am - 7.45am for 2021/2022 only 84 trucks utilised the ferry, meaning one truck crosses every four days on average during this time. An even lower occurrence of heavy vehicles occurs in the 5.15pm-6.00pm period.

· An additional operator is required from 7.45am to assist with the supervision of school children using the ferry to cross at 8am to connect with school buses on Settlement Point Road.

Fees and Charges

Information related to the operating loss of the ferry operations is outlined within the Financial and Economic Implications section of this report, including the impacts of the service level amendment recommendations in this report. Any operating loss of the ferry operations is funded via the General Fund, thereby having a resulting impact on the overall financial position of Council.

Arising from that information, Council has the option to seek to reduce or maintain the existing deficit position over time via review of fees and charges annually, providing a stronger emphasis on a user pays basis for the service. Fees and charges for resident concessional passes for the ferries have remained unchanged since 2015/16. Alternatively, Council may maintain fees and charges at their current level, which will result in the operating loss growing over time as operating costs increase. Such a continued position would have a resulting detrimental impact on other services of Council and is therefore not recommended.

To reduce the operating loss on the ferry service, Council may seek to increase the suite of fares for the ferries. A number of resident concessional fare options exist, including 25 ticket book, weekly, monthly and annual passes, which are significantly discounted from the standard full fare charges and have not changed since 2015/16 as mentioned above. Increasing the resident concessional fares is recommended via the annual review of fees and charges, noting at present each of these fares is a note denomination for simplification of cash handling by the operator. For example, a $5 increase across all resident concessional fares would realise of the order of $40,000-$45,000 of additional income, covering the additional cost of the Hibbard Ferry operating hours.

The standard full fare charges provide the greatest opportunity for additional income generation as they account for the majority of income received. This is outlined within the Financial and Economic Implications section of this report. Increases to these are recommended. For a single trip fare for a car, an increase of $2 (from $6 to $8) would realise approximately $160,000 of additional income. As part of this, a review of large vehicle fees and charges to ensure they better reflect the space utilised on the ferry should also be considered. For example, a semi-trailer charge is currently $18, the equivalent of the charge for three vehicles, however a greater area on the ferry deck is used.

Supporting the review of fees and charges is those currently in place at Burns Point Ferry in the Ballina Shire Council LGA. A comparative summary of key fees and charges for 2022/2023 is provided below for those most commonly used. Ballina Shire offer discounts (50%) only to pensioner and health care card holders for the Burns Point Ferry, whereas in the Port Macquarie-Hastings concessional fares are available to all residents.

Fare Type	BSC	PMHC
Motorcycle - Single	$3	$2 / $0.40*
Car/Utilities - Single	$7	$6 / $0.80*
Trucks (small-medium) - Single	$15.50	$12 / $2.40*
Semi-Trailers - Single	$24.50	$18 / $3.20*
Cars/Utilities - Weekly	$62.50	$40 / $10*
Cars/Utilities - Annual	$387.50	$1000 / $350*

*LGA residents only concessional fare.

This report recommends that Council progressively increase fees and charges annually to reduce the current operating loss of the ferry operation service, the approach for which would be based on the information outlined above. If endorsed the revised fees and charges will be included within the draft Fees and Charges as part of the Integrated Planning and Reporting suite of documents to be reported to Council in coming months.

Further to the above, this report recommends that Council explore opportunities for a funding subsidy via Transport for NSW for the ferry operations given the service is one of the few Council operated ferries in NSW. The intention would be to write to Transport to NSW to commence this conversation.

Community Engagement and Internal Consultation

Community engagement was undertaken in early 2021 following the Ordinary Council Meeting of February 2021. The engagement report was attached to the Ferry Operations report to the May 2021 Ordinary Meeting of Council. The intent of the engagement was to better understand:

· Service level expectations of the ferry services

· Satisfaction levels with ferry services

· Issues impacting ferry users

The engagement identified a moderate level of satisfaction with the ferry operation services, with the improvement opportunities primarily relating to cost and wait times. The most commonly recommended ideas related to waiting time were with regard to additional staffing and extended hours of operation of the Hibbard Ferry.

Internal consultation has occurred with:

· Fleet Services Manager

· Group Manager Infrastructure and Recreation Operations

· Director Community Infrastructure

· Executive

Prior to implementing changes to ferry operation staffing needs, consultation with the contractor would need to occur on how to best provide the additional labour. The contractor is in support of the extended hours of two-person operations based on their assessment of risk.

Planning and Policy Implications

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

Financial and Economic Implications

The annual operating loss for the ferries was approximately $824,000 in 2021/2022, which is funded from General Revenue. Prior reports to Council indicated an annual loss of $941,400, an average of the previous 5 years. The 2021/2022 loss was lower partially as a result of higher patronage over that year driven by domestic tourism in light of the impacts of COVID-19 restrictions and re-building post March 2021 flooding. For context the village areas along Riverside Drive, Shoreline Drive (and intersecting cul-de-sacs), North Shore Drive and Plomer Road generate approximately $520,000 in rate revenue annually to the General Fund.

Some amendments to fees and charges came into effect from mid-2022. Primary changes were to the standard full fare (typically day visitors/trips) and standard fares for heavy vehicles. The single-trip standard full fare (cars/utilities) increased from $5 to $6. Further increases to resident concessional fares were recommended, but not ultimately resolved by Council.

Council has minimal opportunity to reduce operating expenses as this would largely be only achieved via a reduction in service. Therefore, to improve the financial position of the ferry operation, increased revenue is the main opportunity. Options in this regard are outlined within the Options section of this report.

Of the income received at present, approximately 63% is received from standard full fare purchases (based on the 2021/2022 financial year). Resident concessional fares account for the remainder (37%). Resident concessional fares account for 79% of the vehicle ferry trips however, indicating a perceived inequity in the structure of the fees and charges.

Council must also fund the replacement of ferries, as is the case with any asset of Council. The Hibbard Ferry in particular will require replacement in the near future, of which Council will need to fund. The likely cost of this replacement is of the order of $5-6 million. Only $1.7 million is in reserve at present to fund this cost, noting this reserve is also used for the cyclic slipping program of each ferry every 4 years. Without replacement, reliability of the service can be expected to worsen as a result of an ageing asset. Fees and charges should factor in the renewal cost, via the funding of annual depreciation as a minimum, to provide a true reflection of the overall cost to operate the ferry service.

Attachments

1. Ferry Patronage Data Summary

AGENDA Ordinary Council

16/02/2023

Item: 11.02

Subject: Port Macquarie-Hastings Tree Management

Presented by: Community, Planning and Environment, Melissa Watkins

Alignment with Delivery Program

2.3.3 Develop and implement management of operational and maintenance programs for open space, recreational and community facilities.

RECOMMENDATION

That Council:

1. Note the information contained in this report.

2. Adopt a Tree Management Budget increase of $620,000 as described in the report for inclusion in the draft 2023/2024 Operational Plan

3. Confirm a $920,000 per annum budget allocation for Tree Management for inclusion in future budgets as described in the report for inclusion in the draft 2024/2025 Operational Plan and outer years.

Executive Summary

This report is provided in response to a Council Resolution on 19 May 2022 where Council resolved as follows:

That Council:

1. Note a proposed additional budget of $100,000 has been included in the draft 2022-2023 Operational Plan for management of trees.

2. Note the backlog of 842 tree requests with 53% of those jobs rated in the very high to high risk band.

3. Note information on tree approval requirements has been updated on Council’s website.

4. A future report will be presented to Council following the review of the tree function outlining the budget required to fast-track the backlog of work and deliver process improvements identified in the review.

5. Include in report to Council, point 4, consideration of options to reduce risk and provide provisions for residents to prune trees without approval from Council.

This report is to provide further information in response to resolutions 4 and 5 above.

Discussion

At the Ordinary Council Meeting held on 19 May 2022, Council considered a report on Port Macquarie-Hastings tree management policies and procedures.

In April 2021 Council staff submitted a business case seeking an increase in tree management resources to assist with clearing the backlog of tree maintenance on public land. Following consideration of this business case, an additional $100,000 was committed each year, for three financial years, commencing FY 2021/2022 and finishing in 2023/2024.

Last financial year (2021/2022), the additional $100,000 was utilised to engage contractors to complete additional works. This equated to 34 additional Very High and High risk trees (Priority 1 & 2) being actioned.

The cost to engage contractors to undertake works equates to approximately $475 per hour compared to $310 per hour when internal resources are utilised. These hourly costs include provision of one truck chipper combination, one Elevated Work Platform (EWP) and four staff. The annual cost of a Council tree worker is approximately $82,557 (staff salary and on-cost only, plant not included). After analysing the data, it was determined that a better outcome would be achieved if the additional budget was allocated for internal resourcing. Subsequently, Council have now employed an additional tree worker on a two-year contract.

The additional staff member increased efficiencies allowing for the splitting of rostered days off which provides an additional 26 operational days per annum, continuation of productive service during periods of leave where a 3-person team can be operational i.e. 4 weeks’ x 4 staff (previously through periods of leave crew would be reduced to 2-person crew and only focusing on ground works), improvements in WH&S, aerial rescue, rotation of duties, fatigue management and allowing for all plant to be onsite with additional plant operator.

As of February 2023, there were 751 tree maintenance tasks, for trees on public land, listed within Council’s Tree Management system. A single request can include multiple trees therefore this equates to 1563 actual trees requiring some form of works to be undertaken by Council within the LGA. Note: impacts from the storm event on Friday 3 February 2023 added an estimated 150 individual sites that have some form of works identified from single branch failure to complete tree failure.

Some sites have a combination of both failures to multiple trees.

The following table provides a breakdown of the current and projected tree management budget. Current projections show a significant decrease in the recurrent budget from 2024/25 onwards - this will have a significant impact on funding current resources from 2024/25 onwards.

FY 2021/22	Recurrent budget	$945,716
	Additional funding	$100,000
	Total	$1,045,716

FY 2022/23	Recurrent budget	$661,982
	Additional funding	$100,000
	First Year - Additional tree maintenance undertaken (2 years only)	$300,000
	Total	$1,061,982*
*Note increase between FY 21/22 & 22/23 only equates to $16,266
Projected budget
FY 2023/24	Recurrent budget	$661,982**
	Additional funding	$100,000
	Final Year - Additional tree maintenance undertaken (2 years only)	$300,000
	Total	$1,061,982
**estimated budget + CPI increase based on prior years
FY 2024/25	Recurrent budget	$661,982**
	Total	$661,982
**estimated budget + CPI increase based on prior years

Resolution 4

To fast-track clearing the backlog of tree maintenance and removal works across the LGA, significant financial increase is required to the current budget. A number of options have been considered ranging from $1,640,000 which would see the backlog cleared within 12 months to no change in budget which would lead to a reduction in the current service level and an increase in outstanding tasks.

It is recommended the following option be adopted:

Proposed Option for ongoing funding:

· No additional capital budget increase during 2023/2024 financial year and;

· In 2023/2024 increase the recurrent operational budget by $620,000 (giving a total of $920,000 and;

· From 2024/2025 Increase operational budget by a further $300,000 and continue in the ongoing financial year’s budget. This will return the budget to the 2021/22 recurrent budget amount of $920,000

Total Cost = $920,000 each year, ongoing

Outcome: Estimate additional 50% reduction in Priority 1 and 2 tree tasks

This budget increase will allow for an increase in operational positions within Council’s tree management team, along with essential plant and equipment. The increase in resources will result in changes to workflow by increasing operational capacity from currently 1 crew to 2 crews with the following structure:

· (1 x FTE) Team Leader (roving to scope works and assist with task completion)

· (6 x FTE) Tree Maintenance Team Members - 3 members per crew

The above structure will allow internal staff to schedule newly identified Very High and High Risk (Priority 1 & 2) tree works within appropriate timeframes and implement a cyclic, proactive tree maintenance schedule (Note: current resources only allow for a reactive, risk based program schedule).

Additional tree management budget options are contained within Attachment 1.

Resolution 5

In 1992 Council adopted Tree Preservation Orders, being Public Property Policy and Private Land Policy with the objectives:

· To protect vegetation and provide for the assessment of the impact of clearing for the reasons of preserving amenity and the ecology of the area of Hastings.

· To provide supporting information in relation to Council’s Tree Preservation Order in relation to assessment and processing of application for permits under the Order.

In June 2011, both Tree Preservation Orders were rescinded. Equivalent provisions were incorporated into (then) DCP 2011, and subsequently DCP 2013 to form the framework when assessing private tree removal and pruning applications.

DCP 2013 Chapter 2.6.3 (then) stated;

Development Provisions:

a) Clause 5.9 (2) of the Local Environmental Plan applies to trees listed in Table 2.6-1 and any tree on land that is:

· 3 metres or higher in height, or

· has a trunk diameter of 100mm measured at 1.0 metre above ground level; or

· is a mangrove or cycad

Table 2.6-1 referenced Koala Food Trees and categorised them as primary, secondary/supplementary and other browse species.

Certain criteria also allowed for the pruning trees on private lands without approval:

d) Removal of dead branches including palm fronds and the selective removal of branches up to and including a diameter of 50mm may be undertaken without a permit or development consent where the removal:

· Does not alter the canopy of the tree, and

· Does not destroy the aesthetic appearance of the tree canopy; and

· Does not alter the growth structure of the tree, and

· Is carried out in accordance with Australian Standard AS 4373 - Pruning of Amenity Trees

In June 2020 amendments were made to DCP 2013 which included legislative criteria surrounding Tree Management - Private Land to which State Environmental Planning Policy SEPP (Vegetation in Non-Rural Areas) 2017 Applies.

Clause 9 of SEPP (Vegetation in Non-Rural Areas) 2017 (then) required Council to declare vegetation that requires a permit for removal in a DCP. The prescribed vegetation only applies to Land Use Zones regulated by Council.

When the DCP 2013 was updated, a typographical error (bold below) was made that infers only trees listed in Table 1: Koala Food Trees, requires Council approval for removal.

Development Provisions, now states:

a) Prescribed vegetation for the purposes of the SEPP (Vegetation in Non-Rural Areas) 2017 is any tree identified in Table 1 or is a mangrove or cycad and is:

· 3 metres or higher in height, or

· has a trunk diameter of 100mm measured at 1.0 metre above ground level, or

· a hollow bearing tree

As a result of this amendment, Council’s Tree Management - Private Land procedure has been revised to inform customers of current legislative requirements under DCP 2013. No approval is required for tree removals unless it meets the above mentioned criteria, or in an area mapped as Littoral Rainforest or Coastal Wetland under the SEPP (Coastal Management) 2018 and subject to a development application.

These changes should be reflected in the DCP and will be with the next DCP review.

On 1 March 2022, SEPP (Vegetation in Non-Rural Areas) 2017 was repealed by the NSW Government and consolidated into the State Environmental Panning Policy (Biodiversity and Conservation) 2021.

Options

Council may choose to:

1. Adopt the recommendations as proposed;

2. Seek additional information; or

3. Resolve in some other manner.

Community Engagement and Internal Consultation

Internal engagement has taken place with the following stakeholders:

· Group Manager Community

· Recreation and Facilities Manager

· Parks Management Officer

· Senior Arborist

Planning and Policy Implications

At this time there are no planning or policy implications arising from this report.

Financial and Economic Implications

The level of financial impact will depend on the level of budget commitment Council adopts. These options were discussed in the body of the report and in Attachment 1.

This report recommends as follows:

· No additional capital budget increase during 2023/24 financial year and;

· In 2023/2024 increase the recurrent operational budget by $620,000 (giving a total of $920,000 and;

· From 2024/2025 Increase operational budget by a further $300,000 and continue in the ongoing financial year’s budget. This will return the budget to the 2021/2022 recurrent budget amount of $920,000

Total Cost = $920,000 each year, ongoing

Outcome: Estimate additional 50% reduction in Priority 1 and 2 tree tasks

Attachments

1. Tree Management Budget Options

date of meeting:		Thursday 16 February 2023
location:		Council Chambers, 17 Burrawan Street, Port Macquarie
time:		3:00pm

Purchase of 3 x copies of book “Painting Stories” for each of Council’s Libraries	$120.00
Donation to PMQ Salvation Army Christmas/Toy Appeal	$500.00
Donation to Jigsaw Australia / Learning Ventures	$150.00
Total allocation	$770.00

Original Budget as at 1 July 2022	Balanced	$0
Plus adjustments:
July Review	Shortfall	($102,411)
August Review	Balanced	$0
September Review	Surplus	$136,452
October Review	Balanced	$0
November Review	Shortfall	($7,000)
January Review	Balanced	$0
Forecast Budget Position for 30 June 2023	Surplus	$27,041

Performance Indicator	2019-20 Actual	2020-21 Actual	2021-22 Actual	2022-23 Actual
	*Jul-Dec*	*Jul-Dec*	*Jul-Dec*	*Jul-Dec*
Visitation (Glasshouse)	141,849	34,863	31,116	87,712
Visitation (Gallery)	22,124	10,343	6,982	16,036
Visitation (VIC)	56,740	N/A	N/A	N/A
Visitation (website)	98,351	35,172	46,070	114,572
Utilisation (%) (theatre)	51%	12%	13%	49%
Utilisation (%) (studio)	52%	15%	14%	32%
Utilisation (%) (meeting rooms)	38%	21%	14%	54%
Average attendance (%) (theatre)	66%	68%	65%	73%
Average attendance (%) (studio)	58%	91%	57%	82%
Number of tickets processed	42,738	5,763	4,274	35,201
Percentage of tickets sold online	45%	13%	41%	59%

LSPS Theme	Relevant Council Strategy	Notes
Our Environment	Environmental Sustainability Strategy	Strategy name to be confirmed following a Councillor Workshop in Q1 2023
Our Places	Living and Place Strategy	A new strategy which will incorporate Council’s approach to Master Planning (in accordance with the PMHC Blueprint) and the provision of a diversity of housing across the LGA in the right locations. The current Urban Growth Management Strategy and draft Housing Strategy is proposed to be superseded by the Living and Place Strategy subject to Council’s endorsement
Our Connections	Regional Integrated Transport Strategy	Draft Strategy currently on Public Exhibition
Our Economy	Economic Development Strategy	Strategy has been drafted and is currently under further review prior to further consideration by Council
Enabled by Infrastructure	Infrastructure Strategy	Draft Strategy currently on Public Exhibition

Application	Property	Extent of Variation
DA2022 - 244.1	20 Castle Court, Port Macquarie	10.0%
DA2021 - 952.1	135 Bridge Street, Port Macquarie	5.0%
DA2022 - 184.1	8 Short Street, Port Macquarie	5.3%
DA2022 - 601.1	118 Settlement Point Road, Port Macquarie	7.4%
DA2022 - 627.1	140 Diamond Drive, Port Macquarie	6.0%