Agenda of Strategy and Assets Committee

Minutes of the Strategy and Assets Committee

Meeting Date: Tuesday, 12 December 2017

Location: Council Chambers, City Administrative Centre, Bridge Road, Nowra

Time: 5.00pm

The following members were present:

Clr John Wells - Chairperson

Clr Joanna Gash

Clr Amanda Findley

Clr Patricia White

Clr Kaye Gartner

Clr Nina Cheyne

Clr Annette Alldrick

Clr John Levett

Clr Mitchell Pakes

Clr Greg Watson – left 6.38pm

Clr Mark Kitchener

Clr Bob Proudfoot

Mr Russ Pigg - General Manager

Apologies / Leave of Absence

Apologies were received from Clr Guile

Confirmation of the Minutes

RESOLVED (Clr Gash / Clr Cheyne) MIN17.1050

That the Minutes of the Strategy and Assets Committee held on Tuesday 21 November 2017 be confirmed.

CARRIED

Declarations of Interest

Clr Alldrick – “SA17.308 – Proposed Lease – 39 Holloway Road, Nowra – Illawarra Shoalhaven Local Health District” – less than significant non pecuniary interest declaration – will remain in the room and will take part in discussion and vote – “she is an employee of the Illawarra Shoalhaven Local Health District”.

Notices of Motion / Questions on Notice

SA17.302 Notice of Motion - Shoalhaven Heads Surf Lifesaving Club

HPERM Ref: D17/400105

Recommendation (Item to be determined under delegated authority)

That

1. Council undertake urgent work to re-shape and lower the height of the sand dune that has developed between the Shoalhaven Heads Surf Lifesaving Club (S.H.S.L.C) and the patrolled section of the beach

2. The General Manager identify and recommend a funding source for the required works;

3. Council develop a Dune Management Plan for the immediate area surrounding the Surf Club and the car park, such area to preserve clear view lines to enhance public safety, and environmental appreciation by the public from the viewing platforms and picnic facilities at this location.

Clr Gartner raised a Point of Order against Clr Pakes regarding his comments on the attendance of the Mayor and comments made at the Councillor Briefing. The Chair ruled as a Point of Order. Clr Pakes was asked to withdraw his comments and speaking in a way that is disruptive to the meeting.

Clr Pakes declined to withdraw his comments on the briefing.

Clr Findley raised a Point of Order against Clr Pakes regarding his comments which had nothing to do with the motion on the paper. The Chairperson ruled and accepted the Point of Order and asked Clr Pakes to withdraw previous comments which in accordance with his previous request.

Clr Pakes withdrew his comments.

RESOLVED (Clr Wells / Clr Proudfoot) MIN17.1051

That:

1. Council undertake urgent work to investigate re-shaping and lowering of the height of the sand dune that has developed between the Shoalhaven Heads Surf Lifesaving Club (S.H.S.L.C) and the patrolled section of the beach

2. The General Manager identify and recommend a funding source for the required works;

4. The General Manager submit a report to the next Council meeting (December Ordinary) in relation to part 1 above.

CARRIED

SA17.303 Notice of Motion - New Years Eve Celebrations

HPERM Ref: D17/400158

Recommendation

That

1. Council undertake a City-Wide review of its support of New Years Eve Celebrations incorporating fireworks displays and in so doing applies the principles of equity, convenience of access, public safety and community well-being and budget, in determining resourcing levels to each of these events, and

2. Having reviewed its distribution and allocation of funding contributions under its Donations Policy, Council determine, if appropriate, a revised level of support for these events.

3. For the 31 December 2017 event proposed for the Shoalhaven Heads community Council provide support to the extent of $5000.

4. For other communities that either do not have public celebrations or hold celebrations which are privately funded, Council undertake a public consultation early in 2018 to determine the appetite and capability of particular communities to stage such celebrations and if warranted, determine a level of support.

Motion (Clr Wells / Clr Pakes)

That:

2. Having reviewed its distribution and allocation of funding contributions under its Donations Policy, Council determine, if appropriate, a revised level of support for these events.

3. For the 31 December 2017 event proposed for the Shoalhaven Heads community Council provide support to the extent of $5000.

For: Clr Wells, Clr White, Clr Pakes, Clr Watson, Clr Kitchener and Clr Proudfoot

Against: Clr Gash, Clr Gartner, Clr Cheyne, Clr Alldrick, Clr Findley, Clr Levett and Russ Pigg

lost

Foreshadowed Motion (Clr Gartner / Clr Cheyne)

That:

2. Having reviewed its distribution and allocation of funding contributions under its Donations Policy, Council determine, if appropriate, a revised level of support for these events.

3. For other communities that either do not have public celebrations or hold celebrations which are privately funded, Council undertake a public consultation early in 2018 to determine the appetite and capability of particular communities to stage such celebrations and if warranted, determine a level of support.

For: Clr Gartner, Clr Cheyne, Clr Alldrick, Clr Findley and Clr Levett

Against: Clr Wells, Clr Gash, Clr White, Clr Pakes, Clr Watson, Clr Kitchener, Clr Proudfoot and Russ Pigg

FORESHADOWED MOTION lost

SECOND Foreshadowed Motion (Clr Gash / Clr Alldrick)

That:

2. Having reviewed its distribution and allocation of funding contributions under its Donations Policy, Council determine, if appropriate, a revised level of support for these events.

3. For the 31 December 2017 event proposed for the Shoalhaven Heads community Council provide support to the extent of $1,500.

For: Clr Gash, Clr Gartner, Clr Alldrick, Clr Findley, Clr Levett and Russ Pigg

Against: Clr Wells, Clr White, Clr Cheyne, Clr Pakes, Clr Watson, Clr Kitchener and Clr Proudfoot

SECOND FORESHADOWED MOTION lost

Note: Following the consideration of this Item, Councillors Watson, Proudfoot, Kitchener and Pakes submitted a Notice of Rescission. In accordance with Clause 4.8(3) of the Code of Meeting Practice the proposed replacement Motion will be listed as a Notice of Motion on the Business Paper of the Ordinary Meeting of 19 December 2017.

SA17.304 Rescission Motion - SA17.294 Council options for reducing impacts of wood smoke

HPERM Ref: D17/400199

Recommendation (Item to be determined under delegated authority)

That

1. Council rescind the following adopted recommendation (SA17.294 part 2)

2. The NSW EPA be notified to change the Shoalhaven City Council’s listing under Schedule 8 of the Protection of the Environment Operations (clean Air) regulation 2010 from Part 3 - Areas in which all burning (other than burning of vegetation) is prohibited except with approval or in relation to certain domestic waste to:

a. Schedule 8 Part 1 – Areas in which all burning (including burning of vegetation and domestic waste) is prohibited except with approval.

2. A briefing be held to properly inform Councillors of the implication should the change to Schedule 8 Part 1 be imposed.

RESOLVED (Clr Watson / Clr Pakes) MIN17.1052

That:

1. Council rescind the following adopted recommendation (SA17.294 part 2)

a. Schedule 8 Part 1 – Areas in which all burning (including burning of vegetation and domestic waste) is prohibited except with approval.

2. A briefing be held to properly inform Councillors of the implication should the change to Schedule 8 Part 1 be imposed.

CARRIED

Reports

Procedural Motion - Bring Item Forward

RESOLVED (Clr Wells / Clr White) MIN17.1053

That the matter of item SA17.314 – Outcomes of Exhibition and Proposed Finalisation – Draft Local Approvals Policy be brought forward for consideration.

CARRIED

SA17.314 Outcomes of Exhibition and Proposed Finalisation - Draft Local Approvals Policy	HPERM Ref: D17/360794
Note: Clr Watson left the meeting.
Recommendation (Item to be determined under delegated authority) That Council: 1. Adopt the draft Shoalhaven Local Approvals Policy at Attachment 1 with the noted changes. 2. Obtain approval of the Chief Executive of the NSW Office of Local Government for Part 1 of the draft Shoalhaven Local Approvals Policy prior to finalisation. 3. Give public notice of the adoption of the Shoalhaven Local Approvals Policy as per legislative requirements, following finalisation. 4. Rescind the following policies when the Shoalhaven Local Approvals Policy becomes effective: a. POL16/268 – Local Approvals Policy On-site Sewage Management. b. POL16/229 - Caravan Parks in Flood Prone Areas Policy (DCP / LAP). c. POL16/240 - Local Approvals Policy Mobile Food Stalls/Vehicles and Temporary Food Premises. 5. Notify relevant stakeholders and submitters of this resolution and again following finalisation of the Shoalhaven Local Approvals Policy.
RESOLVED (Clr Gartner / Clr White) MIN17.1054 That Council: 1. Adopt the draft Shoalhaven Local Approvals Policy at Attachment 1 with the noted changes. 2. Obtain approval of the Chief Executive of the NSW Office of Local Government for Part 1 of the draft Shoalhaven Local Approvals Policy prior to finalisation. 3. Give public notice of the adoption of the Shoalhaven Local Approvals Policy as per legislative requirements, following finalisation. 4. Rescind the following policies when the Shoalhaven Local Approvals Policy becomes effective: a. POL16/268 – Local Approvals Policy On-site Sewage Management. b. POL16/229 - Caravan Parks in Flood Prone Areas Policy (DCP / LAP). c. POL16/240 - Local Approvals Policy Mobile Food Stalls/Vehicles and Temporary Food Premises. 5. Notify relevant stakeholders and submitters of this resolution and again following finalisation of the Shoalhaven Local Approvals Policy. CARRIED

SA17.305 2018 Australian Local Government Women's Association NSW (ALGWA) State Conference - 15-17 March 2018 - Cootamundra-Gundagai Regional Council

HPERM Ref: D17/300421

Recommendation (Item to be determined under delegated authority)

That Council:

1. Notes the details of the 2018 Australian Local Government Women’s Association NSW (ALGWA) State Conference scheduled for Thursday 15 March – Saturday 17 March 2018 in Gundagai.

2. Authorises available Councillors to attend the conference and such attendance be deemed Council Business.

3. Travel, registration fees, accommodation and all reasonable out-of-pocket expenses be met in accordance with its adopted policy.

4. Request Councillors attending the conference to provide a written report within 30 days of returning from the conference.

RESOLVED (Clr Pakes / Clr Cheyne) MIN17.1055

That Council:

1. Notes the details of the 2018 Australian Local Government Women’s Association NSW (ALGWA) State Conference scheduled for Thursday 15 March – Saturday 17 March 2018 in Gundagai.

2. Authorises available Councillors to attend the conference and such attendance be deemed Council Business.

3. Travel, registration fees, accommodation and all reasonable out-of-pocket expenses be met in accordance with its adopted policy.

4. Request Councillors attending the conference to provide a written report within 30 days of returning from the conference.

CARRIED

SA17.306 Community Facilities - Use and Hire for Commercial Activities - Policy Update	HPERM Ref: D17/402723
Note: Clr Watson returned to the meeting.
Recommendation (Item to be determined under delegated authority) That Council adopt the Community Facilities – Use and Hire for Commercial Activities Policy.
RESOLVED (Clr Gartner / Clr White) MIN17.1056 That Council adopt the Community Facilities – Use and Hire for Commercial Activities Policy. CARRIED

SA17.307 Public Policies for Review - Asset Management - December 2017

HPERM Ref: D17/373959

Recommendation (Item to be determined under delegated authority)

That:

1. The draft Asset Management Policy be adopted

2. The Road Sealing Contributions Policy be adopted

RESOLVED (Clr Gash / Clr White) MIN17.1057

That:

1. The draft Asset Management Policy be adopted

2. The Road Sealing Contributions Policy be adopted

CARRIED

SA17.308 Proposed Lease - 39 Holloway Road, Nowra - Illawarra Shoalhaven Local Health District	HPERM Ref: D17/375143
Clr Alldrick – less than significant non pecuniary interest declaration – will remain in the room and will take part in discussion and vote – “she is an employee of the Illawarra Shoalhaven Local Health District”.
Recommendation That Council: 1. Enter into a lease agreement in accordance with Council’s Occupation of Council Owned and Managed Land Policy (POL16/150) with Illawarra Shoalhaven Local Health District for the use and occupation of 39 Holloway Road, Nowra for a term of five (5) years at a commencing rental of $13,850.00 per annum plus GST; 2. List the subsidies applied of $18,572 plus GST, as assessed using the Rental Assessment Framework with annual CPI increases as a recognised donation in Council’s Annual Report each year for the term of the lease agreement; 3. Authorise the General Manager to finalise the lease terms that may not yet be determined and to sign any documentation necessary to give effect to this resolution.
RECOMMENDATION (Clr Cheyne / Clr Gartner) That Council: 1. Enter into a lease agreement in accordance with Council’s Occupation of Council Owned and Managed Land Policy (POL16/150) with Illawarra Shoalhaven Local Health District for the use and occupation of 39 Holloway Road, Nowra for a term of five (5) years at a commencing rental of $13,850.00 per annum plus GST; 2. List the subsidies applied of $18,572 plus GST, as assessed using the Rental Assessment Framework with annual CPI increases as a recognised donation in Council’s Annual Report each year for the term of the lease agreement; 3. Authorise the General Manager to finalise the lease terms that may not yet be determined and to sign any documentation necessary to give effect to this resolution. CARRIED

SA17.309 Proposed Licence from Crown Lands - Admiralty Cr, Huskisson Jetty

HPERM Ref: D17/386961

Recommendation

That Council:

1. Enter into a licence agreement with the Department of Industry – Lands & Forestry for the Admiralty Cr, Huskisson jetty, for an indefinite term with an initial annual rent of $524.70 (Including GST) with annual CPI increases and a market review period at 3 years;

2. Authorise the General Manager to sign all documentation required to give effect to this resolution and to affix the Common Seal of the Council of Shoalhaven to all documentation required to be sealed.

RECOMMENDATION (Clr Pakes / Clr Proudfoot)

That Council:

CARRIED

SA17.310 Right of Carriage Way - Closed Section of North Street, Berry

HPERM Ref: D17/389070

Recommendation

That Council:

1. Approve the creation of a right of carriage way over proposed Lot 1 being the section of North Street, Berry to be closed in accordance with MIN17.143 to benefit Lot 202 DP1115404;

2. Authorise the General Manager to sign all documentation required to give effect to this resolution and to affix the Common Seal of the Council of the City of Shoalhaven to all documentation required to be sealed.

RECOMMENDATION (Clr Proudfoot / Clr White)

That Council:

1. Approve the creation of a right of carriage way over proposed Lot 1 being the section of North Street, Berry to be closed in accordance with MIN17.143 to benefit Lot 202 DP1115404;

CARRIED

SA17.311 Acquisition of Part Lot 2 DP1170503 - 124 Princes Highway, South Nowra

HPERM Ref: D17/395531

Recommendation

That Council:

1. Acquire part of Lot 2 DP1170503 at South Nowra consisting of 582.4m²for the agreed sum of $52,000 exc GST and pay reasonable costs incurred by the owner as a result of this acquisition in accordance with the Land Acquisition (Just Terms) Compensation Act (1991);

2. Funds to cover the cost of this acquisition be voted from S94 Project 01ROAD2143 ($21,375.88) with the balance of $35,000 voted from the Strategic Property Reserve;

3. The Strategic Property Reserve be reimbursed by future Section 94 contributions from Project 01ROAD2143;

4. Dedicate the acquired land as road pursuant to S10 of the Roads Act 1993;

5. Affix the Common Seal of the Council of the City of Shoalhaven to any documentation requiring the Seal to be affixed, otherwise the General Manager be given delegated authority to sign any documentation necessary to give effect to this resolution.

RECOMMENDATION (Clr Gash / Clr White)

That Council:

2. Funds to cover the cost of this acquisition be voted from S94 Project 01ROAD2143 ($21,375.88) with the balance of $35,000 voted from the Strategic Property Reserve;

3. The Strategic Property Reserve be reimbursed by future Section 94 contributions from Project 01ROAD2143;

4. Dedicate the acquired land as road pursuant to S10 of the Roads Act 1993;

CARRIED

SA17.312 Acquisition 333 Illaroo Road North Nowra

HPERM Ref: D17/397823

Recommendation

That Council in accordance with Section 10A(2) (c) of the Local Government Act 1993, consider a separate confidential report on this matter.

RECOMMENDATION (Clr Proudfoot / Clr Cheyne)

That Council in accordance with Section 10A(2) (c) of the Local Government Act 1993, consider a separate confidential report on this matter.

CARRIED

SA17.313 ISJO Regional Waste Strategy

HPERM Ref: D17/403117

Recommendation (Item to be determined under delegated authority)

That Council

1. Endorse the Regional Waste Strategy 2017 – 2021 report as a high level framework for setting priorities and a long term direction for improved management of wastes and recycling in the region. and

2. Note that many of the actions and initiatives within the strategy are already supported by current staffing arrangements and if there is any additional funding required by the strategy this will be the subject of specific budget consideration by Council.

RESOLVED (Clr Pakes / Clr White) MIN17.1058

That Council:

CARRIED

SA17.314 Outcomes of Exhibition and Proposed Finalisation - Draft Local Approvals Policy

HPERM Ref: D17/360794

Item dealt with earlier/later in the meeting see MIN17.1054.

SA17.315 2016/17 State of the Environment Report

HPERM Ref: D17/393655

Note: Clr Watson left the meeting at 6:38pm.

Note: Clr Gash left the meeting.

Recommendation (Item to be determined under delegated authority)

That the report be received for information.

RESOLVED (Clr Proudfoot / Clr Gartner) MIN17.1059

That the report be received for information.

CARRIED

SA17.316 Tenders - Human Waste Removal Services

HPERM Ref: D17/369959

Recommendation

That the Committee consider a separate confidential report in accordance with Section 10A(2)(d)(i) of the Local Government Act 1993.

RESOLVED (Clr White / Clr Gartner) MIN17.1060

That the Committee consider a separate confidential report in accordance with Section 10A(2)(d)(i) of the Local Government Act 1993.

CARRIED

SA17.317 Acquisition and sale of land at Huskisson

HPERM Ref: D17/371168

Note: Clr Gash returned to the meeting.

Recommendation

That Council resolve to:

1. Acquire part of Lot 100 DP1222232 at Huskisson, shown highlighted yellow on the attached draft survey plan, for an amount of $19,500 plus GST.

2. Sell part of Lot 5 DP544758 at Huskisson, shown highlighted blue on the attached draft survey plan, for an amount of $2,500 plus GST.

3. Reimburse the owner’s reasonable legal costs in accordance with the Land Acquisition (Just Terms Compensation) Act 1991, from Council’s Sewer Fund. Proceeds from the sale of the Council land are to be paid to that fund to partially offset the acquisition costs.

4. Classify the acquired land as Operational land in accordance with Section 31(2) of the Local Government Act.

5. The Common Seal of the Council of the City of Shoalhaven be affixed to any documents required to be sealed.

RECOMMENDATION (Clr Proudfoot / Clr White)

That Council resolve to:

1. Acquire part of Lot 100 DP1222232 at Huskisson, shown highlighted yellow on the attached draft survey plan, for an amount of $19,500 plus GST.

2. Sell part of Lot 5 DP544758 at Huskisson, shown highlighted blue on the attached draft survey plan, for an amount of $2,500 plus GST.

4. Classify the acquired land as Operational land in accordance with Section 31(2) of the Local Government Act.

5. The Common Seal of the Council of the City of Shoalhaven be affixed to any documents required to be sealed.

CARRIED

SA17.318 Payment of Dividend from Shoalhaven Water 2016-17

HPERM Ref: D17/389075

Recommendation

That Council determines that “substantial compliance” of the criteria in the Best Practice Management of Water Supply and Sewerage Guidelines has been achieved and a dividend will be paid from the water fund to the general fund for the 2016/2017 budget year.

RECOMMENDATION (Clr Gartner / Clr Cheyne)

CARRIED

SA17.319 Tenders - Construction of Workshop & Offices for Shoalhaven Water at Deering St Ulladulla

HPERM Ref: D17/389867

Recommendation

That Council consider a separate confidential report in accordance with Section 10A(2)(d)(i) of the Local Government Act 1993.

RESOLVED (Clr White / Clr Gartner) MIN17.1061

That Council consider a separate confidential report in accordance with Section 10A(2)(d)(i) of the Local Government Act 1993.

CARRIED

Confidential Reports

Pursuant to Section 10A(4) the public were invited to make representation to the meeting before any part of the meeting is closed, as to whether that part of the meeting should be closed.

No members of the public made representations.

RESOLVED (Clr White / Clr Proudfoot) MIN17.1062

That the press and public be excluded from the Meeting, pursuant to section 10A(1)(a) of the Local Government Act, 1993, to consider the following items of a confidential nature.

CSA17.17 Acquisition 333 Illaroo Road North Nowra

Information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business.10(A)(2)(c)

There is a public interest consideration against disclosure of information as disclosure of the information could reasonably be expected to reveal commercial-in-confidence provisions of a contract, diminish the competitive commercial value of any information to any person and/or prejudice any person’s legitimate business, commercial, professional or financial interests.

CSA17.18 Tenders – Human Waste Removal Services

Commercial information of a confidential nature that would, if disclosed prejudice the commercial position of the person who supplied it.10(A)(2)(d)(i)

CSA17.19 Tenders - Construction of Workshop & Offices for Shoalhaven Water at Deering St Ulladulla

Commercial information of a confidential nature that would, if disclosed prejudice the commercial position of the person who supplied it.10(A)(2)(d)(i)

CARRIED

The meeting moved into confidential the time being 6.44pm.

The meeting moved into open session, the time being 6.49pm.

Report from confidential session

The following resolutions of the meeting, whilst closed to the public, were made public.

CSA17.18 Tenders – Human Waste Removal Services

HPERM Ref: D17/371473

RESOLVED (Clr Findley / Clr Pakes) MIN17.1063C

That:

1. Council accept the Tender from Staples Bros. (Nowra) Pty Ltd for Human Waste Removal Services at a total estimated annual cost of $1,151,946 (excluding GST) for a period of three (3) years commencing 1 March 2018 and ending 28 February 2021 with an option to extend the Contract for one further term of up to two (2) years.

2. The contract documents and any other associated documents be executed on behalf of the Council in accordance with cl165 of the Local Government Regulation by the General Manager (Director Shoalhaven Water).

CARRIED

CSA17.19 Tenders - Construction of Workshop & Offices for Shoalhaven Water at Deering St Ulladulla

HPERM Ref: D17/376437

RESOLVED (Clr Gash / Clr Gartner) MIN17.1064C

That

1. Council accept the Tender from TERENO Pty Ltd for Construction of Workshop & Offices for Shoalhaven Water at Council’s Southern Depot – Deering St Ulladulla at a total cost of $1,079,892.00 (excluding GST).

CARRIED

There being no further business, the meeting concluded, the time being 6.50pm.

Clr Wells

CHAIRPERSON

Strategy and Assets Committee – Tuesday 23 January 2018

Page 19

SA18.4 Eco-Cities Summit 2017 - Shoalhaven District Liaison Committee - Emergency Response - Natural Disaster Events - Bushfire Risk Education - EMPLAN - Bushfire Fuel Reduction - Climate Adaption Plans

HPERM Ref: D18/9900

Group: General Manager's Group

Section: Executive Strategy

Purpose / Summary

This report provides further information and details in response to the conference report submitted to Council by Clr Kitchener on his attendance at the Eco- Cities Summit. This report also responds to the subsequent resolution from this report that Council:

1. Work with the Shoalhaven District Liaison Committee to identify new partnerships and collaborations for creating improved integrated approaches to emergency response during natural disaster events and to illuminate ways to further improve bushfire risk education in the Shoalhaven Community.

2. Further review its policy statements on the EMPLAN, Bushfire Fuel Reduction, Climate Adaption Plans and any other policy connected to climate change, protecting the environment or emergency management, to identify synergies and create new co-operations to ensure there is no doubling up of responsibilities and the community further develop a wide ranging understanding of bushfire risk in the Shoalhaven.

Recommendation

That Council receive the report of the General Manager regarding Eco-Cities Summit 2017 attended by Clr Kitchener for information

Options

1. Adopt recommendation

2. Proposed an alternative recommendation

Background

Clr Kitchener’s detailed report on the Eco-Cities Summit already highlights a number of strategies that Council is currently undertaking to protect the environment and to prepare for possible climate change events.

Council also works within the existing Emergency Management Framework, to ensure that the City is prepared for the impacts of climate change and bushfire risk. There are a number of existing projects, partnerships and frameworks that are already in place to meet the requirements of the Council resolution. These are detailed below.

Emergency Management Framework

The State Emergency & Rescue Management Act 1989 (SERM Act) provides the legal framework and governance for emergency management in NSW including the EMPLAN which sets out a comprehensive approach to emergency management at State, Region and Local level.

Shoalhaven EMPLAN was endorsed by the Illawarra South Coast Regional Emergency Management Committee in April 2016. EMPLAN is currently being reviewed and updated to reflect minor changes and will be submitted to the Local Emergency Management Committee in February 2018 for endorsement of the minor changes.

The major change to Shoalhaven EMPLAN follows an auditing process and discussions with all identified evacuation centres within the Shoalhaven. Three main evacuation centres have been identified within EMPLAN with other centres identified as venues which could be initially used as assembly areas and if required upgraded to be used as an evacuation centre if the situation calls for.

The EMPLAN further identifies risks within the Shoalhaven and the LEMC undertakes development of Consequence Management Guides which are detailed processes on how partners in emergency management assist the agency responsible for the incident in Control, Command, Coordination, Strategies, Actions and Recovery.

Agencies operating under EMPLAN promote disaster resilience, engaging communities by sharing risk information in the development of plans and thus increasing community capabilities.

Bushfire Management and Collaboration

Council has a bushfire management internet page which links to RFS pages including the Shoalhaven District Bushfire Risk Management Plan, Bush Fire maps for urban release areas and Neighbourhood Safer Places.

Council’s Bushfire Mitigation Program covers 100 sites maintained as part of Council’s Annual Bushfire Mitigation Program. The program includes sites such as active and passive recreational reserves, operational land, road reserves and infrastructure installations.

There are already a number of exiting partnerships and collaboration opportunities that are in place and being worked on to continue to improve Shoalhaven’s readiness for a disaster.

Council is already actively working with the RFS on promotion and educational opportunities for our community and will continue to do this through existing partnerships and connections.

Council has active partnerships and is working on projects with organisations such as the NSW SES, Bureau of Meteorology, Wollongong, Shellharbour and Kiama Councils, Office of Environment & Heritage, RMS, Ambulance NSW, Fire & Rescue, RFS and Local Land Services. For example the development of Flash Flood Warning Systems within the Illawarra South Coast.

Sustainability/Climate Change

Council developed the Sustainability Action Plan in 2011 – 2016 which includes sections on Climate Change, Biodiversity, Waste, Water, Energy, Transport and Sustainable purchasing.

Council has formed the Sustainable Futures Committee and has acknowledged the Cities Power Partnerships with five pledge actions to be undertaken within the next six months.

Council staff have been involved in the Enabling Regional Adaption project to identify adaption pathways that build resilience to climate extremes and minimise impacts on local communities. This project explores the potential impacts of climate change on government service and operations, what vulnerabilities occur, the capacity of different areas to respond and potential measures to improve resilience of the local community.

The University of Wollongong and the Bushfire & Natural Hazards Co-operative Research Centre has developed a research project into recent fire conditions across NSW urging residents to take part. The research focuses on community preparedness and actions taken across summer of 2016/2017 that saw the worst ever fire conditions in NSW with several areas affected by Catastrophic fire dangers and some impacted by significant fires. This research will help the RFS to understand the community’s perception of bush fire risk and how people prepare. It also investigates people’s perception of information and warnings prior to and during fires and to see if there are ways of improving how the public is informed.

Local Emergency Management Committee

The Shoalhaven LEMC and the Jervis Bay Emergency Management Committee liaise and work closely together during times of emergencies to ensure community safety. The Shoalhaven Rural Fire Service have in place a service level agreement with Jervis Bay Territory to provide assistance during fires as recently experienced with the major fire at Booderee, strengthening partnerships.

Emergency Management Health Check

Council recently participated in the Emergency Management Health Check for Local Government which is a tool to help councils track and evaluate their emergency preparedness and to identify areas for improvement in capacity and capability to prevent or respond to major emergencies or disasters.

The Health Check is an annual process which will enable councils to measure their progress over a period of time. The Health Check focuses on 4 groups showing the overall score out of 5 for these areas.

The following is a guide to the results scale:

· 5 = Highly Effective – Demonstrates best practice in capability and the capacity to sustain and continuously improve.

· 4 = Effective – Processes and procedures meet expectations and should continue to be regularly reviewed to maintain assurance of effective capability at all times.

· 3 = Adequate– Isolated gaps I processes and procedures mean a consistent, effective and coordinated approach cannot be assured.

· 2 = Limited – Major gaps in capability exist which may lead to financial or operational loss, safety or compliance breach or community, environmental or reputation impact.

· 1 = Poor – Capability is absent or not effective posing extreme risks. Potential for significant adverse financial, operational, safety, community, environmental or reputational. Impacts.

Council Results Four Focus Groups:

Focus Area	Council Score
Managing Risks	3.92
Planning for emergencies and disasters	3.93
Building Capability to respond effectively	3.67
Providing assurance of capability and capacity	4

Key Areas	Council Score
Risk management	3.67
Collaborating with stakeholders to reduce risk	5
Considering risks and hazards in land use planning	3.5
Emergency planning management and policy	4.6
Emergency management roles and responsibilities	3.5
The role of the Local Emergency Management Committee (LEMC)	4.25
The role of the Local Emergency Management Officer (LEMO)	4
Identifying and preparing vulnerable communities and individuals	4
Informing and engaging the community	3.67
Considering emergency management risks within asset management programs	3.75
Business continuity planning for council and the broader community	3.25
Maintaining Local Emergency Operations Centres	4.5
Resourcing for recovery	3
Emergency management training and exercising to build response capability	3.67
Reviews and reporting to provide assurance and capacity	4

As can be seen from the Local Government Health Check Council has achieved adequate to effective results in all areas (in some cases even achieving highly effective scores). This shows that Council is already well placed to deal with emergency management within our region and highlights areas for continued improvement. This will be tracked over future years to determine trends and identify areas for improvement.

Policy Implications

As can be seen from the outline of specific projects, benchmarking activities, partnerships and programs, Council is well placed to respond to emergencies and bushfire risk. There are always opportunities for improvement and the suggestions contained within the report and subsequent Council resolution will continue to be included in any future policy reviews.

At this time, the existing policy direction and existing planning documentation does not require immediate update.

A number of existing partnerships are already in place and have been considered in line with the existing resourcing available. Future opportunities will be considered in line with the resource requirements, at the time they become available, to determine whether implementation could proceed.

Financial Implications

There are no financial implications for the recommendation presented in this report. If Council adopts an alternative recommendation then financial impacts will need to be considered.

Strategy and Assets Committee – Tuesday 23 January 2018

Page 30

SA18.7 Bay and Basin Community Hub - Draft Master Plan Exhibition Complete - Request for Detailed Design Phase

HPERM Ref: D17/311244

Group: Finance Corporate & Community Services Group

Section: Recreation Community & Culture

Attachments: 1. Draft Bay and Basin Master Plan - Community Hub - January 2017 for Exhibition (under separate cover) ⇨

2. Overview - Exhibition Boards ⇩

3. Submission table with Staff comment ⇩

Purpose / Summary

To present the submissions received during the exhibition of the Draft Bay & Basin Master Plan for Council to adopt the Plan with minor wording changes to the report and to seek Council approval to proceed to detailed design including an indoor learn to swim/therapy pool. The detail design phase needs to show staging to ensure the gym, health and fitness facilities remain operational during construction.

Recommendation (Item to be determined under delegated authority)

That Council:

1. Adopt the Draft Bay & Basin Master Plan, with minor wording changes to the report as outlined in the submission table.

2. During development of detailed design Council incorporate additional Learn to Swim/ Therapy Pool.

3. Continue the licence with the Department of Education for the existing building at Sanctuary Point and staff liaise with the local community and user groups to determine its best use.

Options

1. Adopt the recommendation.

Implications: This will allow finalisation of the plan and be able to progress to detailed design so the project is shovel ready and proceed to development phase and enable consultation to take place with the Sanctuary Point Community in relation to the future use of the existing library building.

2. Adopt the recommendations with amendment(s).

Implications: Council may resolve to remove or add to the recommendations and this may require re-exhibition of the master plan.

Background

In response to population growth in the Bay & Basin area, Council has recognised the potential to further develop the Bay & Basin Leisure Centre and surrounding lands. To recognise this potential, Council engaged consultants Group GSA to develop a Master Plan for the site. The Draft Bay & Basin Community Hub Master Plan was established and presented to Council’s Strategy and Assets Committee meeting on 21 February 2017 (SA17.36). At that meeting under delegated authority, MIN17.102 was adopted:

“1. Endorse public exhibition of the draft Bay & Basin Community Hub Master Plan for a period of 42 days.

2. Advise stakeholders involved in the preparation of the draft Bay & Basin Community Hub Master Plan of its public exhibition.

3. Receive a further report after public exhibition of the draft Bay & Basin Community Hub Master Plan.

4. Establish a Sub-Committee comprising of Clrs and members of the CCB’s and user groups be convened to assist to finalise the Draft Bay & Basin Community Hub Master Plan.”

Subsequently, in line with item one (1) of the resolution, Council placed the Draft Master Plan on public exhibition from 6 March to 30 April 2017. The Get Involved Page, Social Media, Print Media and hard copy flyers were utilised. In addition, there were two (2) drop in sessions held at the Bay and Basin Leisure Centre on Tuesday 4 and Wednesday 5 April 2017, for community to view the plans and speak with Council Staff and the consultants. The drop in sessions at the Bay and Basin Leisure Centre were well attended with positive comments and feedback on the proposal.

Council received eleven (11) submissions (10 from the community and the other being from internal referrals), with a range of comments:

· Mention of a facility of this magnitude in Sanctuary Point,

· Reversible basketball / netball hoops and dual marking courts,

· Outdoor pool for water polo,

· Varied pedestrian access,

· Skateboard park surveillance / vandalism concern,

· Impact on Huskisson Community Centre and a

· Few points about finance commitments and prioritising (roads and Sussex Inlet – modifications potentially more important).

· Changes to report to reflect correct reference to Local Environment Plan

The comments are broad and range from satisfied to dissatisfied, however overall there was support for the Master Plan. The submissions received and staff comments are attached to this report. The submissions that have requested changes, which staff have reviewed and supported, will be addressed in the detailed design stage of the project. The changes requested regarding reference to DCP instead of LEP will be changed in the draft report prior to finalisation.

In relation to parking provision, the new parking area is more than double the existing parking providing for 268 spaces and another 80 spaces available in the temporary overflow parking zone. The parking demand for the facility is to be 294 spaces (refer to table on page 46 of the Master Plan Draft Report attached) The maximum figure of 294 does not account for the fact that different uses will have peak parking demands at differing times during the day.

In line with item four (4) of the resolution, Council wrote to all Councillors and Community Consultative Bodies in Vincentia, Huskisson, Tomerong Wandandian, Hyams Beach and Bay and Basin, the user groups (i.e. rugby, netball, soccer, AFL, Vincentia High School), to request their participation and attendance as part of a subcommittee. Council received notification from two (2) CCBs and one (1) Councillor, unfortunately one (1) of the CCBs was unavailable on the day set to hold the meeting. Council staff facilitated the meeting with one (1) Councillor and one (1) representative from the Vincentia CCB, the submissions received during the exhibition were discussed at the meeting. It was determined to report back to Council supporting the Draft Bay & Basin Master Plan and requesting to move forward to progress to the detailed design stage.

Council held a briefing on 19/09/2017 in line with Council MIN 17.501 stating:

“That this matter be deferred to a future meeting of Strategy and Assets meeting in August and that this matter be the subject of a Councillor Workshop/Briefing”.

After this briefing it was determined that a further workshop be held. This took place on 07/12/2017 and discussion was had regarding the intended colocation of the library with the Bay & Basin Leisure Centre and its central location to the community as a whole. The impact that this would have on the Sanctuary Point community, where the current library is situated, was also discussed. It was decided that staff would research the options for the library building to remain in its current location and be used to provide services to the community. Staff would liaise with local community groups and members of the local population to determine its best use. It should be noted that Council has a licence to use the land, owned the by NSW Department of Education, upon which the current Sanctuary Point Library is located.

Following the briefing and workshop this report is put to Council, the recommendations stand with an additional recommendation to add the 20x15 metre Learn to Swim/Therapy pool to allow for additional learn to swim programs which will free up space in the existing pool areas, and to retain the existing licence over the department of education land and building.

The Draft Bay & Basin Master Plan is now provided to Council for adoption. Staff will then progress the detailed design in line with the Master Plan and recommended changes from the exhibition period. It is important that the detailed design stage progresses in a way that enables the current gym, health and fitness facilities to remain operational during construction stages.

Community Engagement

Public exhibition ran from 6 March – 30 April 2017. Council utilised the Get Involved Page, Social Media, Print Media and hard copy flyers.

In addition, there were two (2) drop in sessions held at the Bay and Basin Leisure Centre for community to view the plans and speak with Council Staff and the consultants.

The website received 944 visits and there were ten (10) written comments.

The sub-committee meeting on 4 May, 2017 agreed on and supported the Draft Master Plan, and that the progression to detailed design stage should be put to Council to approve and commence.

The subcommittee attendees were Clr Greg Watson and a representative from the Vincentia CCB.

Financial Implications

Funding of $700,000 to continue advancement of the detailed design so the project can be shovel ready for grant funding / project delivery is currently allocated in the 2017/18 financial year budget.

Further funding towards to project is allocated in the LTFP in 2019/2019 - $4.15 million and funding of $650,000 for the regional skate park facility in 2018/19.

The inclusion of this funding in the Council LTFP will assist in supporting applications for grant funding as Council has identified funding to contribute to the project, and the ability to fund undertaking detailed design and obtain DA approval.

Strategy and Assets Committee – Tuesday 23 January 2018

Page 54

SA18.10 Compulsory Acquisition of Right of Access for Bushfire Vehicles at Jerberra Estate - Lot 66 DP11629, Invermay Ave, Tomerong

HPERM Ref: D17/346793

Group: Assets & Works Group

Section: Business & Property

Attachments: 1. Plan of Right of Access for Bushfire Vehicles ⇩

Purpose / Summary

Council has resolved to negotiate the acquisition of a right of access for bushfire vehicles over part of Lot 66 DP 11629, known as Lot 66 Invermay Ave, Tomerong (Jerberra Estate).

This report allows Council to consider the compulsory acquisition of the access under the Land Acquisition (Just Terms) Compensation Act 1991 as the negotiation process has failed to reach agreement.

The right of access for bushfire vehicles will be 6 metres wide and variable over Lots 66-69 DP11629. Refer Attachment 1 – Plan of Right of Access for Bushfire Vehicles;

Recommendation

That Council:

1. Resolve to compulsorily acquire a right of access for bushfire vehicles over part of Lot 66 DP11629, known as Lot 66, Invermay Ave, Tomerong (Jerberra Estate).

2. Pay compensation for the acquisition including all ancillary costs, in accordance with the determination of the Valuer General under the terms and conditions of the Land Acquisition (Just Terms) Compensation Act 1991 from job number 85291;

3. Approve the making of the necessary applications to the Minister for Local Government and the Governor; and

4. Approve that the Common Seal of the Council of the City of Shoalhaven be affixed to any documents required to be sealed and that otherwise the General Manager is authorised to sign any documentation necessary to give effect to the resolution.

Options

1. Do Nothing – Decide not to proceed with the acquisition of the access.

Implications: The fire trail will not be completed and adjoining property owners (of Lot 66) will not be able to obtain development consent.

2. Continue to negotiate the purchase of the entire property or part thereof (right of access) noting that any settlement potentially could be above the market valuation.

Implications: The purchase of the entire property is not required, but rather would be a step in the process to obtain the right of access over Lot 66 prior to on-selling the property. It should be noted that there is a high risk Council will not recover its purchase prices and associated costs.

3. Compulsory acquisition of the right of access

Implications: Council will be able to complete the project objective of a right of access for bushfire vehicles across all properties between Lot 66s to 69 inclusive.

Background

Council at its Ordinary meeting held on the 5^th August 2014 (reconvened from 29^th July) resolved to (MIN14.520):

a) approve the acquisition of a fire trail approximately 6 metres wide and variable under the Land Acquisition Act 1991 in favour of the Rural Fire Service, over Lots 66 to 69 DP11629, Invermay Avenue, Jerberra Estate, Tomerong for nil compensation.

b) Agree to pay the effected land owners of Lots 66 to 69 DP 11629 reasonable legal costs and any other reasonable ancillary costs associated with the acquisition from job no. 85286; and

c) Approve that the Common Seal of the Council of the City of Shoalhaven be affixed to any documents required to be sealed, otherwise the General Manager is authorised to sign any documentation necessary to give effect to the resolution.

Set out below in chronological date order is an account of Council’s attempts to obtain a mutually agreeable resolution to acquiring the Right of Access by agreement:

In 2015, the owner of Lot 66 agreed to grant the right of access to Council for fire trail purposes over part of their property without monetary compensation on the basis that the owners of the adjoining Lot 67 would be purchasing Lot 66 affected by the right of access for a sum agreeable to the owners of each lot.

Subsequent to the above, also in 2015, the owner’s (Lot 66) solicitor advised Council there had been a disagreement between the owners of Lot 66 and Lot 67 in relation to the consolidation of their lots Whilst the owner of Lot 66 was willing to sell, the owners of Lot 67 were unwilling to purchase Lot 66.

In early 2016, legal advice revealed Council could not force the owner of Lot 67 to purchase Lot 66, nor could Council force the consolidation of the two lots. As an alternative, Council made an offer to acquire not just the right of access over the land, but the entire Lot 66 offering to pay market value based on an independent valuation.

On 15 September 2016, a letter of offer to purchase was sent to the property owner (Lot 66), as per a valuation obtained from Opteon Property Group.

On 7 October 2016, the owner (Lot 66) phoned Council refusing the offer stating it was not high enough given neighbouring lots have sold for much more.

On 21 February 2017, at the owner’s (Lot 66) request, a meeting was organised to discuss their development options. The owner cancelled this meeting prior to the date stating it would be fruitless as they have previously had discussions with Council’s Project Manager responsible for the implementation of the fire trails.

On 10 March 2017, the owner’s (Lot 66) solicitor phoned requesting reconsideration of the offer as neighbouring properties had been sold in excess of the amount offered. The solicitor was advised the offer was based on a valuation provided by Opteon Property Group reflecting the inability to obtain development consent.

On 14 September 2017, a letter was sent to the property owner (Lot 66) advising approval to a compulsory acquisition of the right of access would be sought and requesting the owner’s acceptance of Council’s wish to proceed on the basis of agreement – response requested by 13 October 2017.

On 3 October 2017, the property owner’s solicitor phoned arguing their case for more money, upwards of more than four times what Council was offering, and advising the property was going to be listed for sale. It is noted the property was not listed for sale as advised nor has it been listed to date.

On 20 October 2017, a written request was received from the owner’s solicitor proposing that Council purchase Lot 66 at its market value as a way of resolving the issue.

On 23 October 2017, an email reply was sent to the owner’s solicitor advising Council had offered to purchase the entire property which was refused by the property owner.

On 7 November 2017, Council sent a letter to the owner’s solicitor advising Council’s offer to purchase the entire Lot was withdrawn and an approval would be sought from Council to commence the compulsory acquisition process in relation to the right of access.

The owners of Lots 67, 68 and 69 have previously agreed to the acquisition, however are unable to move forward with further development of their land until the Right of Access is registered on title of all four properties.

Given the above, it is clear that Council’s efforts to obtain the agreement of all affected property owners have been thwarted by the objections of one property owner (Lot 66) for greater than six months (the stipulated minimum negotiation time frame in the Land Acquisition (Just Terms) Compensation Act) and Council is therefore justified in seeking to progress to compulsory acquisition.

Notwithstanding, it is always Councils first option to acquire interests in land by agreement, by doing so can result in a protracted time frame, which is the case in this instance. The time frame associated with this particular acquisition has been uncharacteristically long, mainly due to the owner’s (Lot 66) unrealistic expectation as to the value of their property.

Community Engagement

The matter is considered to be a local area low impact issue as outlined in Council’s Community Engagement Policy and Handbook. The affected land owners only have been consulted with in relation to the land matters.

Financial Implications

By undertaking the acquisition via the compulsory acquisition process, compensation will be determined in accordance with the Land Acquisition (Just Terms Compensation) Act 1991 by the Valuer General. The costs associated with the fire trail project are sourced from Job Number 85291, Jerberra Estate Fire Trails, which the Project Manager has advised contains sufficient funds to cover this acquisition.

Strategy and Assets Committee – Tuesday 23 January 2018

Page 67

SA18.14 Proposed Lease - Ulladulla Children's Centre - 31 Hollywood Avenue, Ulladulla

HPERM Ref: D17/400043

Group: Assets & Works Group

Section: Business & Property

Purpose / Summary

To afford Council the opportunity to consider an approval to enter into a lease agreement with Ulladulla Children’s Centre Incorporated for the continued use and occupation of 31 Hollywood Avenue, Ulladulla as a not-for-profit community preschool and long day care centre.

Recommendation

That Council:

1. Advertise its intent to enter into a lease agreement with Ulladulla Children’s Centre Incorporated for the property at 31 Hollywood Avenue, Ulladulla;

2. Provided no objections are received within the submission period, enter into a 5 year lease agreement with a 5 year option period with Ulladulla Children’s Centre Incorporated for the use and occupation of Lots 97, 98 and 99 in Deposited Plan 26132 and Lot 1 in Deposited Plan 785819 known as 31 Hollywood Avenue, Ulladulla with incremental increases in rent for the first three years as follows:

a. Year 1 - $2,836 plus GST;

b. Year 2 - $5,672 plus GST; and

c. Year 3 - $8,509 plus GST

and with rental increases to CPI from year 3 to year 5 and continual CPI increases annually from commencement of the option period;

3. Approve the allocation of rent received under the lease agreement into the Property Reserve restricted account;

4. Authorise the General Manager to sign all documentation required to give effect to this resolution and to affix the Common Seal of the Council of the City of Shoalhaven to all documentation required to be sealed.

Options

1. Resolve as recommended

Implications: The Ulladulla Children’s Centre Incorporated will continue to operate providing a valuable community service.

2. Not resolve as recommended and place the property on the open market for lease.

Implications: Ulladulla Children’s Centre Incorporated operates a long day care centre which has already accepted enrolments for the coming year. To terminate the current lease would cause stress to the parents of children attending the preschool. Further, there is no guarantee that a replacement lessee could be found in the short term.

3. Not resolve as recommended and renegotiate lease terms.

Implications: The proposed lease terms are in accordance with Council’s adopted Occupation of Council Owned and Managed Land Policy;

4. Provide further direction to staff and propose an alternative.

Background

Ulladulla Children’s Centre has been operating on a monthly holding over on a $1pa basis since its lease expired on 9 October 1996.

Council has been in lease negotiations with Ulladulla Children’s Centre Incorporated for the past 4 years. The lease negotiations commenced with a “preschool co-operative” group as initial concerns were shared with each community preschool. Negotiations with the co-operative group were finalised in June and now each community preschool is negotiating with Council directly on any remaining outstanding issues relative to each organisation and/or property.

The co-operative group included:

· Berry Community Preschool;

· Milton Ulladulla Community Preschool;

· Ulladulla Children’s Centre;

· Shoalhaven Community Preschool;

· Lyrebird Community Preschool;

· Culburra & District Preschool; and

· Bomaderry Community Preschool;

Negotiations with Ulladulla Children’s Centre Incorporated have now concluded and an agreement has been reached as outlined below:

Lessee	Ulladulla Children’s Centre Incorporated
Lessor	Shoalhaven City Council
Premises	Lots 97, 98 and 99 in Deposited Plan 26132 and Lot 1 in Deposited Plan 785819, also known as 31 Hollywood Avenue, Ulladulla
Term	5 years
Option	5 years
Assessed Market Rent	$62,400 plus GST per annum
Annual Rent Payable	$8,509 plus GST per annum, payable monthly in advance from year 3
Application of Rent Assessment Policy	Rental subsidy = 86.36%
Rent Review	Fixed increases for the first three years and then annually by CPI thereafter
Percentage of Outgoings	100% -outgoings refers to all charges for gas, electricity, telephone and any water rates and usage, garbage or sanitary rates or user charges relating to the Lessee’s use of the Premises.
Permitted Use	The operation of a community based Long Day Care Centre and all activities incidental thereto.
Public Risk Insurance	Twenty million dollars ($20,000,000.00)

Council obtained a market valuation from Opteon Property Group for the property which assessed the current market rent at $62,400 plus GST per annum. This figure represents the rent Council could receive if the property were leased to a commercial child care operator.

Market valuations for child care centres are based on a Government set ratio of indoor and outdoor space with the fees charged by the centre and the success (or otherwise) of the business having no impact on the market rental.

Ulladulla Children’s Centre Inc. completed and returned its proposal documentation to enable Council to apply the rental assessment framework to the Market Valuation. Given the high level of service the day care centre provides, it was determined that a rental subsidy of 86.36% would apply thus requiring the day care to pay $8,509 per annum.

Given the large increase in rent (current rent at $1pa to the $8,509pa as recommended) it was agreed the new rental would be incrementally introduced to reduce rental shock, resulting in the first year being a third of the rental; the second year two thirds of the rental and the third year the full annual rent assessed at $8,509.

Community Engagement

The subject land is classified as Community land under the Local Government Act 1993 and accordingly, advertising in accordance with Section 47 of the Act must take place before the lease agreement can be executed.

Policy Implications

The proposed lease terms are in accordance with Council’s Occupation of Council Owned or Managed Land Policy.

Financial Implications

Entering into the lease agreement, as recommended will increase Council’s revenue and assist Council with maintenance of its assets into the future.

Strategy and Assets Committee – Tuesday 23 January 2018

Page 75

SA18.18 Support Request - Byron Shire Council - Tourism Accommodation Levy (Bed Tax)

HPERM Ref: D17/424962

Group: Planning Environment & Development Group

Section: Strategic Planning

Attachments: 1. Support Request - Tourism Accommodation Levy Trial ⇩

2. Previous Council Report - Revenue Options ⇩

Purpose / Summary

Consider a request received from Byron Shire Council for support for the NSW Government to establish an expression of interest process for Local Government Areas (LGA’s) to act as trial locations for possible tourism accommodation levy (bed tax).

Recommendation (Item to be determined under delegated authority)

That Council provide a letter of support to Byron Shire Council regarding an Expression of Interest process through the NSW Government for a trial for the implementation and management of a Trial Tourism Accommodation Levy (Bed Tax).

Options

1. Provide a letter of support

Implications: There are minimal direct implications for Council at this stage. Byron Shire Council want the NSW Government to consider an expression of interest process for LGA’s to trial a tourism accommodation levy. They have sought letters of support from Councils. Should they be successful then Shoalhaven could subsequently consider expressing an interest in being part of the trial. If not, then at the very least Council could learn from their experience, before reconsidering whether to pursue a similar approach in Shoalhaven

2. Not provide a letter of support

Implications: Again, there are minimal direct implications for Council, other than missing an opportunity to support a Council facing similar tourism issues as Shoalhaven.

Background

Council has received a letter (see Attachment 1) from Simon Richardson the Mayor of Byron Shire Council seeking Council support for the NSW Government to establish an expression of interest process for Local Government Areas (LGA’s) to act as trial locations for possible tourism accommodation levy (bed tax). The letter has been sent to all Councils in NSW.

This report seeks direction on the request given its relevance to Shoalhaven.

Proposal/Request Overview

The letter notes that in some LGA’s considerable strain is placed on the local community (infrastructure etc.) due to growing visitor/tourist numbers. In Byron’s case it is noted that the LGA has 32,000 residents and 15,000 ratepayers, but is visited by an extra 2.1M people a year. As such they believe there is a need to explore revenue raising options to help meet the demands outside normal mechanisms (special rate variations are mentioned).

The letter suggests that tourism accommodation levy (bed tax) has been used around the world as a way of raising revenue from visitors to help fund their infrastructure impacts. It is suggested that this type of levy has minimal negative impact on visitor numbers or their expenditure.

Byron Shire Council’s website contains some additional information on this subject, see:

http://www.byron.nsw.gov.au/faq/what-about-a-bed-tax-or-tourism-tax-why-not-bring-one-in

The letter concludes that Byron Shire Council would welcome the opportunity to trial a tourism levy and is seeking support in this regard.

Previous Consideration

Council previously considered a report (‘Revenue Options Follow Up Report’) on the 18^th July 2017 (see Attachment 2) that looked at the ability to apply a levy or similar on properties that supply accommodation to the tourism industry and are essentially a business. This was essentially aimed at short term holiday rentals.

Council resolved as follows (MIN17.617):

1. Note the information in the report; and

2. Prepare a detailed motion and supporting documentation to the Local Government Conference for an amendment to the Local Government Act 1993, giving Council the authority to deem that business is being carried out on residential property in relation to applying commercial ratings and equity (Similar to those powers councils have to deem properties as rural).

Short Term Holiday Rentals

The NSW Government has published an “Options Paper” seeking to provide a regulatory framework for short-term holiday rentals (STHL).

Council resolved in October 2017 to:

Make a submission to the NSW Government on the Options Paper: Short Term Holiday Letting in NSW consistent with the content of the report and continue to be involved as required in any outcomes that eventuates.

Council continues to be actively involved in this process, advocating for a State-wide approach that is flexible enough to respond to a variety of scenarios brought about by the growth of short-term holiday rental to metropolitan and regional parts of the State.

Councils submission concluded that: “Given the significance of STHL to tourism in Shoalhaven, Council has had an ongoing and active involvement in this issue and still supports our current approach or one that is similar (essentially “light-touch”) where the majority do not need consent or approval, but problematic ones can be regulated”.

At this point the outcome in this regard is unknown, but the NSW Government has indicated that following the release of the Options Paper and the responses to it, the government will decide whether to pursue the regulation of STHL.

It may be difficult to consider a tourism levy or bed tax on dwellings that are used for STHL if there is no system of formal registration or similar for such premises. At present Council’s resolved position is to not step in and fully regulate this type of use.

Bed Tax – Other Examples

Overall, the implementation of a bed tax has been controversial in other areas of Australia. There have been many reports in the Byron Shire media where associations and businesses are against the implementation of a bed tax. Some of the media commentary in this regard is available at the following links:

· http://www.abc.net.au/news/2016-12-15/byron-bay-bed-tax-idea-opposed-by-accommodation-group/8123626

· https://www.dailytelegraph.com.au/news/nsw/byron-bay-proposal-to-hit-tourist-with-bed-tax-in-bid-to-fund-infrastructure/news-story/02f84b55915874d0472a7fdc5815b72c

· https://www.byronnews.com.au/news/bed-tax-idea-just-wont-lay-down/3138371/

The Queensland Government has also been trying to introduce a bed tax for some time with some opposition and conflicting opinions. Some of the media commentary in this regard is available at the following links:

· http://www.ttf.org.au/queenslands-proposed-bed-tax-the-national-aviation-network-and-trans-tasman-tourism/

· https://www.frasercoastchronicle.com.au/news/queensland-tourism-board/2273627/

· https://www.thechronicle.com.au/news/toowoomba-tourism-operators-reject-5-bed-tax-plan/3155860/

Auckland, New Zealand, has recently passed a bed tax, also with mixed responses across the country. Some of the media commentary in this regard is available at the following links:

· http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11867655

· https://www.hotelmanagement.com.au/2017/07/21/aucklands-new-hotel-tax-slammed-new-zealands-tourism-minister/

· https://www.stuff.co.nz/business/94084938/Auckland-bed-tax-battle-highlights-search-for-tourism-funding

Conclusion

Shoalhaven is a very popular tourist destination and STHL plays a significant role in the local tourism economy. The outcome of the NSW Government’s “Options Paper” on a possible regulatory framework for STHL is unknown, but it is hoped that any state-wide approach will be flexible enough to respond to a variety of scenarios brought about by the growth of short-term holiday rental to metropolitan and regional parts of NSW

Given that Council has previously shown some interest in a tourism levy/bed tax, there may be some value in Council supporting Byron Shire Council trialling a Tourist Accommodation Levy and providing a letter in support of this proposed action. If the requested trial proceeds, Council could learn from its outcomes, before reconsidering whether to pursue a similar approach in Shoalhaven. However, it should be considered that there is a lot of public opinion regarding bed tax and there is potential for mixed reactions from business and community.

Community Engagement

No specific community engagement is required at this point as Council is only being asked for a letter of support. Should Council consider implementing a tourism levy in the future detailed community and industry engagement would be required and essential.

Policy Implications

The NSW Governments position on the regulation of STHL is not known at present.

Financial Implications

None at this point. This will require detailed consideration should Council consider implementing a tourism levy in the future

Roads and other infrastructure for Verons Estate	$2,130,000
Reclaimed Effluent Management System (REMS)	$50,000,000
Expansion of memorial gardens at Worrigee cemetery	$200,000
Shoalhaven Indoor Sports Complex	$4,600,000
Chris Creek shared user path bridge	$640,000
Huskisson town centre service lanes	$150,000
	$57,720,000

Premises	Shop 43 Kinghorne Street, Nowra
Commencing Date	1 February 2018 or thereabouts (subject to confirmation and execution of the lease)
Term	Three (3) years
Option Period	Three (3) years
Rent	$26,936.77 per annum plus GST
Rent Free period	8 weeks
Rent Review Mechanism	Rent reviewed to market at the expiry of the initial 3 year term and fixed 3% annual increases at other anniversary dates during the initial and option terms
Outgoings	Rates: 16.75% Garbage: 16.6% Water/sewer usage: 16.75% Water/sewer availability: 16.75% Trade waste if required: 100% Insurance: 16.75% Management: 100%