Agenda of Strategy and Assets Committee

Minutes of the Strategy and Assets Committee

Meeting Date: Tuesday, 20 February 2018

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

Time: 5.03pm

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

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 White / Clr Cheyne) MIN18.85

That the Minutes of the Strategy and Assets Committee held on Tuesday 23 January 2018 be confirmed.

CARRIED

Declarations of Interest

Clr Pakes – SA18.33 – Proposed Temporary Licence – South Coast Branch NSW of Surf Life Saving Australia Inc – 177-179 Illaroo Road, North Nowra – less than significant non pecuniary interest declaration – will remain in the room and will take part in discussion and vote – “He is President of the Nowra-Culburra SLSC”.

Mayoral Minutes

MMS18.1 Mayoral Minute - Power Bill for Safe Shelter

HPERM Ref: D18/53128

Recommendation (Item to be determined under delegated authority)

That Shoalhaven City Council provide financial support to the Nowra Uniting Church to pay for the electricity bill that was incurred during the homeless trial for Safe Shelter Shoalhaven. The amount $1743.00 be transferred from the unallocated donations budget.

RESOLVED (Clr Findley / Clr Proudfoot) MIN18.86

CARRIED

Deputations and Presentations

SA18.29 - Donation Increase Request - City of Shoalhaven Eisteddfod Inc Nowra.

Mr George Windsor (President Shoalhaven Eisteddfod Inc) addressed the meeting to speak against the recommendation.

Procedural Motion - Bring Item Forward

RESOLVED (Clr Wells / Clr White) MIN18.87

That the following matters be brought forward for consideration:

SA18.29 – Donation Increase Request - City of Shoalhaven Eisteddfod Inc Nowra
SA18.25 – Notice of Motion - Culburra Youth Skate Park
SA18.28 - Progress Report - Development Application for Motor Sports Facility

CARRIED

SA18.29 Donation Increase Request - City of Shoalhaven Eisteddfod Inc Nowra

HPERM Ref: D17/394783

Recommendation (Item to be determined under delegated authority)

That Council continue to provide the City of Shoalhaven Eisteddfod Inc. Nowra $6,800 as an annual allocated donation.

RESOLVED (Clr Wells / Clr White) MIN18.88

That:

1. Council defer the Donation Request increase for the City of Shoalhaven Eisteddfod Inc Nowra pending further consultation with Council.

2. Council continue to maintain the CPI increase in the 2018/2019 Budget.

CARRIED

SA18.25 Notice of Motion - Culburra Youth Skate Park

HPERM Ref: D18/48787

Recommendation

That Council:

1. Allocate $75,000 to the Culburra Beach Youth Skate Park Project

2. Allocate the $75,000 from the Council’s Skate Park Budget

3. Acknowledge the work of Mr Alex McNeily and the committee for their work to date

RECOMMENDATION (Clr Pakes / Clr Proudfoot)

That:

1. Council allocate $75,000 to the Culburra Beach Youth Skate Park Project;

2. Council allocate the $75,000 from the Council’s Skate Park Budget;

3. Council acknowledge the work of Mr Alex McNeilly and the committee for their work to date;

4. Council transfer the maintenance and cleaning costs for the Curley’s Bay facility from the existing facility at Orient Point and decommission the Orient Point facility due to the condition and usage of that facility;

5. A report be submitted to Council outlining the priorities for the remaining Skate Park Budget.

CARRIED

SA18.28 Progress Report - Development Application for Motor Sports Facility

HPERM Ref: D18/49821

Recommendation (Item to be determined under delegated authority)

That Council accept the report on progress of preparing a development application for a motor sports facility for information.

RESOLVED (Clr Gash / Clr White) MIN18.89

That:

1. Council accept the report on progress of preparing a development application for a motor sports facility for information;

2. This matter be referred to a Councillor Briefing;

3. Council invite GHD to participate in the Briefing.

For: Clr Wells, Clr Gash, Clr Findley, Clr White, Clr Gartner, Clr Cheyne, Clr Alldrick, Clr Levett, Clr Pakes, Clr Watson, Clr Kitchener, Clr Proudfoot and Russ Pigg

Against: Nil

CARRIED

Notices of Motion / Questions on Notice

SA18.22 Notice of Motion - Native Nursery - Berry

HPERM Ref: D18/38736

Recommendation (Item to be determined under delegated authority)

That Council be requested to send a letter of congratulations to Mrs Lyn Clark of Berry and her volunteers on the outstanding native nursery that they maintain and where they propagate the many varieties of plants.

RESOLVED (Clr Gash / Clr Findley) MIN18.90

CARRIED

SA18.23 Notice of Motion - Establishment Local Library - Sussex Inlet

HPERM Ref: D18/46399

Recommendation (Item to be determined under delegated authority)

That Council staff prepare a report on suitable sites for the establishment of a local library in the township of Sussex Inlet. The report would also address the possibility of re-locating the current Sanctuary Point library, once the district library had been completed in that community.

RESOLVED (Clr Proudfoot / Clr Pakes) MIN18.91

For: Clr Wells, Clr Gash, Clr Findley, Clr White, Clr Gartner, Clr Alldrick, Clr Levett, Clr Pakes, Clr Watson, Clr Kitchener, Clr Proudfoot and Russ Pigg

Against: Clr Cheyne

CARRIED

SA18.24 Notice of Motion - Representation - Construction of a Grade Separated Intersection - Jervis Bay Road - Princes Hwy

HPERM Ref: D18/48263

Recommendation

That Council make vigorous representations to the Minister for Roads and Maritime and Freight the Hon Melinda Pavey, the Parliamentary Secretary for the Illawarra and South Coast Gareth Ward and the Member for South Coast the Hon Shelley Hancock to give high priority to the construction of a grade separated intersection at Jervis Bay Road and the Princes Highway.

RECOMMENDATION (Clr Wells / Clr White)

That Council make vigorous representations to the Minister for Roads and Maritime and Freight The Hon Melinda Pavey, the Parliamentary Secretary for the Illawarra and South Coast Gareth Ward and the Member for South Coast the Hon Shelley Hancock to give high priority to a safer intersection at Jervis Bay Road and the Princes Highway, with a long term view to construct grade separation.

CARRIED

SA18.25 Notice of Motion - Culburra Youth Skate Park

HPERM Ref: D18/48787

Item dealt with earlier in the meeting.

SA18.26 Notice of Motion - Old Erowal Bay - Childrens Playground, BBQ Area and Public Amenities

HPERM Ref: D18/51080

Recommendation (Item to be determined under delegated authority)

That Council, in consultation with the Old Erowal Bay community, develop plans and source funding of up to $100,000, for a children's playground, BBQ area and public amenities at an appropriate site in the village.

RESOLVED (Clr Levett / Clr Pakes) MIN18.92

CARRIED

Procedural Motion - Adjournment of Meeting

RESOLVED (Clr Wells / Clr White) MIN18.93

That the meeting be adjourned for 10 minutes.

CARRIED

The meeting adjourned the time being 7.07pm

The meeting reconvened the time being 7.14pm

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 Mark Kitchener

Clr Bob Proudfoot

Mr Russ Pigg - General Manager

Note: Clr Watson left during the adjournment of the meeting.

Reports

SA18.27 Bi-Annual Delivery Program and Operational Plan Report - 1 July 2017 to 31 December 2017

HPERM Ref: D18/33202

Recommendation (Item to be determined under delegated authority)

That the report of the General Manager (Executive Strategy) regarding progress to 30 June 2017 on the 2017/2021 Delivery Program and 2017/2018 Operational Plan be received for information, endorsed and published on Council’s website.

RESOLVED (Clr Proudfoot / Clr Wells) MIN18.94

CARRIED

SA18.28 Progress Report - Development Application for Motor Sports Facility

HPERM Ref: D18/49821

Item dealt with earlier in the meeting see MIN18.89.

SA18.29 Donation Increase Request - City of Shoalhaven Eisteddfod Inc Nowra

HPERM Ref: D17/394783

Item dealt with earlier in the meeting see MIN18.88.

SA18.30 December 2017 Quarterly Budget Review

HPERM Ref: D18/40621

Recommendation

That Council:

1. Receive the December Quarterly Budget Review for information

2. Adopt the adjustments, including movements to and from Reserves as outlined in the December Quarterly Budget Review Statement.

RECOMMENDATION (Clr Wells / Clr White)

That Council:

1. Receive the December Quarterly Budget Review for information

2. Adopt the adjustments, including movements to and from Reserves as outlined in the December Quarterly Budget Review Statement.

CARRIED

SA18.31 Classification of Land - Lot 1 DP553658 (No.333) Illaroo Road Bangalee

HPERM Ref: D17/430490

Recommendation

That Council resolve to classify the land described as Lot 1 DP553658 (No.333) Illaroo Road Bangalee as Operational Land.

RECOMMENDATION (Clr White / Clr Cheyne)

That Council resolve to classify the land described as Lot 1 DP553658 (No.333) Illaroo Road Bangalee as Operational Land.

CARRIED

SA18.32 Proposed Leases - Illawarra Area Child Care Incorporated - Four Sites- 2*Sanctuary Point - Shoalhaven Heads - Nowra

HPERM Ref: D18/3459

Recommendation

That Council:

1. Enter into a 5 year lease agreement commencing 1 July 2018 with Illawarra Area Child Care Inc. for the continued use and occupation as a preschool of:

a) The Basin Preschool at 34 Paradise Beach Rd, Sanctuary Point with an annual rent of $11,553.07 (plus GST) with annual CPI increases; and

b) Sanctuary Point Children’s Centre at 210 Kerry St, Sanctuary Point with an annual rent of $6,460.80 (plus GST) with annual CPI increases; and

c) Clipper Road Children’s Centre at 42 Clipper Rd, Nowra with an annual rent of $4,172.50 (plus GST) with annual CPI increases; and

2. Advertise its intention to enter into a 5 year lease agreement with Illawarra Area Child Care Inc. and if no objections are received, authorise the lease for the continued use and occupation of Jerry Bailey Children’s Centre at 16 Celia Pl, Shoalhaven Heads for the purpose of a preschool with an annual rent to commence at 01 July 2018 of $8,516.16 (plus GST) with annual CPI increases;

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

4. 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.

RECOMMENDATION (Clr Proudfoot / Clr Alldrick)

That Council:

1. Enter into a 5 year lease agreement commencing 1 July 2018 with Illawarra Area Child Care Inc. for the continued use and occupation as a preschool of:

a. The Basin Preschool at 34 Paradise Beach Rd, Sanctuary Point with an annual rent of $11,553.07 (plus GST) with annual CPI increases; and

b. Sanctuary Point Children’s Centre at 210 Kerry St, Sanctuary Point with an annual rent of $6,460.80 (plus GST) with annual CPI increases; and

c. Clipper Road Children’s Centre at 42 Clipper Rd, Nowra with an annual rent of $4,172.50 (plus GST) with annual CPI increases; and

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

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.

CARRIED

SA18.33 Proposed Temporary Licence- South Coast Branch NSW of Surf Life Saving Australia Inc.- 177-179 Illaroo Rd, North Nowra

HPERM Ref: D18/4819

Clr Pakes - less than significant non pecuniary interest declaration – will remain in the room and will take part in discussion and vote – “He is President of the Nowra-Culburra SLSC”.

Recommendation

That Council:

1. Enter into a 12 month licence agreement with South Coast Branch NSW of Surf Life Saving Australia Incorporated for the use and occupation of Lots 3 & 4 DP234757 and Lot 1 DP814265, 177 – 179 Illaroo Rd, North Nowra for storage purposes with an annual rent of $486 (plus GST); and

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 Gash / Clr White)

That Council:

CARRIED

SA18.34 Proposed sale of Lot 2 DP1217124 Wire Lane Berry to Merveilleux Pty Ltd and consolidation with Lot 14 DP253806

HPERM Ref: D18/7298

Recommendation

That Council:

1. Authorise the sale of Lot 2 DP1217124 Wire Lane, Berry to the owner of the adjoining Lot 14 DP253806, Merveilleux Pty Ltd for $50,000 (plus GST if applicable) provided that each party is to pay its own costs in relation to the sale;

2. Fund all costs associated with the sale from Job Number 88750 and the net proceeds from the sale be placed in the Property Reserve – Roads; to fund future road acquisitions and/or works on public roads; and

3. Authorise the affixing of the Common Seal of the Council of the City of Shoalhaven to any documents requiring to be sealed and that the General Manager be authorised to sign any documents necessary to give effect to this resolution.

RECOMMENDATION (Clr Findley / Clr Levett)

That Council:

CARRIED

SA18.35 Proposed New Charge for Commercial Quantities of Recyclable Materials

HPERM Ref: D18/21924

Recommendation

That Council:

1. Include a charge of $100/tonne in the Draft 2018/19 Fees & Charges for the acceptance of commercial quantities (>1m³) of low value recyclable materials (soft plastics, hard plastics, polystyrene and glass) delivered to Council’s Waste Facilities

2. For the remainder of the 2017/18 financial year, authorise the General Manager to apply a 70% discount to the general waste charge for the acceptance of commercial quantities (>1m³) of low value recyclable materials (soft plastics, hard plastics, polystyrene and glass) delivered to Council’s Waste Facilities

RECOMMENDATION (Clr Findley / Clr Cheyne)

That Council:

CARRIED

SA18.36 Request Refund of Fees Associated with William Campbell College - 16 Gannet Rd, Nowra Hill

HPERM Ref: D18/34772

Recommendation (Item to be determined under delegated authority)

That in accordance with the Committee’s delegated authority from Council, the Committee reimburse the plan checking and construction inspection fees ($808.60) for William Campbell College as identified in the report in accordance with Waiving of Development Application Fees and Other Fees For Charitable Organisations and Community Groups Policy (POL17/10).

RESOLVED (Clr Gash / Clr White) MIN18.95

That in accordance with the Committee’s delegated authority from Council, the Committee reimburse the plan checking and construction inspection fees ($808.60) for William Campbell College as identified in the report from the Unallocated Donations Budget in accordance with Waiving of Development Application Fees and Other Fees For Charitable Organisations and Community Groups Policy (POL17/10).

CARRIED

SA18.37 Easements for Access at Coolangatta - Shoalhaven Heads Water Reservoir

HPERM Ref: D18/26278

Recommendation

That:

1. Council resolve to:

a. Extinguish an existing Easement for Access 6 wide over Lots 1 & 2 DP223278 and Lot 1 DP525517 Bolong Road Coolangatta. The easement is shown by pink colour on copy of DP451468, attached.

b. Accept an alternative Easement for Access 6 wide over Lot 722 DP1076887 Edward Wollstonecraft Lane Coolangatta in favour of Council. The proposed new easement is shown by hatching and blue colour on extract of DP1076887, attached.

2. Council to pay its own costs associated with the transactions from Shoalhaven Water’s Water fund. The transactions are to be at $nil consideration.

3. 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:

1. Council resolve to:

a. Extinguish an existing Easement for Access 6 wide over Lots 1 & 2 DP223278 and Lot 1 DP525517 Bolong Road Coolangatta. The easement is shown by pink colour on copy of DP451468, attached.

2. Council pay its own costs associated with the transactions from Shoalhaven Water’s Water fund. The transactions are to be at $nil consideration.

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

CARRIED

SA18.38 SF10572 - Connection to Town Sewerage System - Lot 8 DP776949 and Lot 6 DP703243 Larmer Avenue Worrowing Heights

HPERM Ref: D18/31255

Recommendation (Item to be determined under delegated authority)

That Council approve the connection of the proposed lots under SF10572, to its sewerage system, by pressure sewer, subject to the applicant complying with all conditions specified on a Shoalhaven Water Development Application Notice.

RESOLVED (Clr Proudfoot / Clr White) MIN18.96

CARRIED

Introduction of Items as Matters of Urgency

RESOLVED (Clr Pakes / Clr White) MIN18.97

That the following addendum reports be introduced as matters of urgency:

1. SA18.39 Tenders - Report - Replacement of Moona Moona Creek Timber Bridge

2. SA18.40 Holiday Haven Financials

3. SA18.41 Better Boating Now - Round Two Grant Funding

4. SA18.42 Tenders - Report Bolong Road Back Forest Shoulder Widening and Overlay

CARRIED

The Chairperson ruled the matters as ones of urgency as they relate to urgent business of Council and allowed their introduction.

Addendum Reports

SA18.39 Tenders - Report - Replacement of Moona Moona Creek Timber Bridge

HPERM Ref: D18/33810

Recommendation (Item to be determined under delegated authority)

That Council note the submissions received for Tender 56497E - Replacement of Moona Moona Creek Timber Bridge on 14 December 2017 and consider the assessment of these tenders as a separate confidential report in accordance with Section 10A(2)(d)(i) of the Local Government Act 1993.

RESOLVED (Clr Pakes / Clr Gartner) MIN18.98

CARRIED

SA18.40 Holiday Haven Financials

HPERM Ref: D18/10507

Recommendation (Item to be determined under delegated authority)

That Council note the report on the capacity of Holiday Haven profits being used for the upgrade of infrastructure on Crown land reserves in the Bendalong/Manyana area, and that the Holiday Haven tourist park at Bendalong made a gross profit of $443,596 in 2016/17 and has a profit forecast in the amount of $438,900 in 2017/18.

RESOLVED (Clr White / Clr Proudfoot) MIN18.99

That:

1. The General Manager prepare a Capital Works priority list identifying the allocation of funds for the upgrade of infrastructure on Crown Land in the Bendalong/Manyana area and that ballpark estimates for such upgrades be prepared so that the priority list can be considered by Council as soon as possible.

2. A report on the expenditure of Holiday Haven profits be provided to the Committee at the completion of Part 1) of this Resolution.

For: Clr Wells, Clr White, Clr Gartner, Clr Cheyne, Clr Alldrick, Clr Levett, Clr Pakes, Clr Kitchener, Clr Proudfoot and Russ Pigg

Against: Clr Gash and Clr Findley

CARRIED

SA18.41 Better Boating Now - Round Two Grant Funding

HPERM Ref: D18/34421

Recommendation (Item to be determined under delegated authority)

That:

1. Council accept the grant offers from NSW Transport (RMS) of $400,000 for upgrading of the Woollamia Regional Boat Launching Ramp.

2. Council authorise the General Manager to negotiate with RMS for the $400,000 grant offer identified for a new facility at Lake Conjola to be spent on alternative boating facilities as nominated by the grant priority list adopted at Council’s meeting of 15th August 2017 (MIN17.696).

3. Council acknowledge the petition of 373 signatures forwarded from the Callala Bay Community Association and advise the Association that upgrading of the Callala Bay Boat launching ramp remains a high priority for future grant funding opportunities.

4. Council continue to seek funding opportunities for full funding of a new boat launching ramp facility at Havilland Street West Lake Conjola.

RESOLVED (Clr Gash / Clr Proudfoot) MIN18.100

That Council:

1. Accept the grant offers from NSW Transport (RMS) of $400,000 for upgrading of the Woollamia Regional Boat Launching Ramp.

2. Authorise the General Manager to negotiate with RMS for the reallocation of the $400,000 grant funding for the following:

a. (Priority 5) Berringer Lake Foreshore Reserve

b. (Priority 7) Greenwell Point Effluent Pump out Facility and Floating Pontoon

3. Acknowledge the petition of 373 signatures forwarded from the Callala Bay Community Association and advise the Association that upgrading of the Callala Bay Boat launching ramp remains a high priority for future grant funding opportunities.

4. Continue to seek funding opportunities for full funding of a new boat launching ramp facility at Havilland Street, West Lake Conjola.

For: Clr Wells, Clr Gash, Clr Findley, Clr White, Clr Gartner, Clr Cheyne, Clr Alldrick, Clr Levett, Clr Pakes, Clr Proudfoot and Russ Pigg

Against: Clr Kitchener

CARRIED

SA18.42 Tenders - Report Bolong Road Back Forest Shoulder Widening and Overlay	HPERM Ref: D18/54383
Note: Clr Pakes left the meeting.
Recommendation (Item to be determined under delegated authority) That Council consider a separate confidential report in accordance with Section 10A(2)(d)(i) of the Local Government Act 1993.
RESOLVED (Clr Proudfoot / Clr White) MIN18.101 That Council consider a separate confidential report in accordance with Section 10A(2)(d)(i) of the Local Government Act 1993. CARRIED

SA18.43 Question on Notice - Harry Sawkins Park Memorial Vandalism

RESOLVED (Clr Gash / Clr Wells) MIN18.102

That Council investigate the vandalism in Harry Sawkins Park to the Harry Sawkins Memorial and provide an update to Councillors.

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 Proudfoot / Clr White) MIN18.103

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.

CSA18.1 Notice of Motion - Purchase of Land - Sanctuary Point

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.

CSA18.3 Tenders – Confidential Report - Replacement of Moona Moona Creek Timber Bridge

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)

CSA18.4 Tenders – Confidential Report - Bolong Road Back Forest Shoulder Widening and Overlay

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)

CSA18.2 Portable Drawdown Device - Commercialisation Potential

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

Note: Clr Pakes returned to the meeting.

The meeting moved into confidential the time being 8.13pm.

The meeting moved into open session, the time being 8.15pm.

Report from confidential session

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

CSA18.1 Notice of Motion - Purchase of Land - Sanctuary Point

HPERM Ref: D18/49477

RESOLVED

That:

2. The recommendation remain confidential in accordance with Section 10A(2)(c) until negotiations are complete.

CSA18.2 Portable Drawdown Device - Commercialisation Potential

HPERM Ref: D18/21524

RESOLVED

That Council approve to proceed to an EOI process to engage with an appropriate industry partner to further develop and commercialise the Pump Station Portable Draw Down Device.

CSA18.3 Tenders – Confidential Report - Replacement of Moona Moona Creek Timber Bridge

HPERM Ref: D18/33415

RESOLVED

That Council:

1. Endorse the Tender Panel’s assessment and resolve to accept the Tender from Bridgeworks Pty Ltd for the amount of $1,365,000 (excluding GST) as per their submission to Tender 56497E - Replacement of Moona Moona Creek Timber Bridge.

2. As the Contract Principal, authorise the General Manager to appoint a Principal’s Representative to execute the appropriate contract documents on Council’s behalf.

CSA18.4 Tenders – Confidential Report - Bolong Road Back Forest Shoulder Widening and Overlay

HPERM Ref: D18/54325

RESOLVED

That Council:

1. Endorse theTender Panel’s assessment and resolve to accept the Tender from Select Civil Pty Ltd for Bolong Road Back Forest shoulder Widening and Overlay Project at a total cost of $1,286,842.60 (excluding GST).

2. As the contract Principal, authorise the General Manager to appoint a Principal’s Representative to execute the appropriate contract documents on behalf of the Council in accordance with cl165 of the Local Government Regulation.

3. Endorse funding the project shortfall of $160,000 from the Roads to Recovery allocation.

There being no further business, the meeting concluded, the time being 8.15pm.

Clr Wells

CHAIRPERSON

Strategy and Assets Committee – Tuesday 20 March 2018

Page 17

SA18.45 Hyams Beach- Workshop Outcomes- Easter Actions and Resource Requirements

HPERM Ref: D18/84701

Group: General Manager's Group

Section: Executive Strategy

Attachments: 1. Easter Action Plan-Hyams Beach ⇩

Purpose / Summary

To provide Council with a summary of the two workshops held with the residents and other stakeholders for Hyams Beach. To outline and seek approval for the proposed actions to be implemented by Council and seek approval for required resources.

Recommendation

That:

1. Council support the implementation of actions for the Hyams Beach as a trial for the Easter period 2018.

2. Council allocate a total of $ 78,800 to implement the trial

3. A report is provided back to Council on the outcome of the trial and a consideration of ongoing resource provision in the Hyams Beach location

4. Council continue discussions with key stakeholders from Hyams Beach and stakeholders from the wider Shoalhaven to develop long term solutions to increasing visitor numbers and infrastructure needs.

5. A working party is formed to assess long term strategic and sustainable infrastructure solutions to current and potential hotspots throughout the region, taking into consideration the Sustainable Tourism Model currently being created

6. Consideration be given to the purchase of variable message board signs (VMS) to assist with future peak summer holiday periods to reduce the costs of hiring. These signs can also be utilised by Council for other festivals, events and emergency situations.

Options

1. Adopt the recommendation as printed

Implications: This will ensure that the agreements reached at the community workshop can be implemented as a trial for the Easter period.

2. Adopt an alternative recommendation

Background

At the Ordinary Meeting of the 30^th January 2018 Council resolved:

RESOLVED (Clr Pakes / Clr Gash) MIN18.13

That Council organise an urgent meeting to discuss the issues that have been identified over the 2016/2017 Christmas holidays in the village of Hyams Beach, and that the

1. Meeting to take place as soon as possible.

2. Meeting to include, General Manager, Councillors, Compliance Staff, Asset Management Staff, Tourism Staff, Hyams Beach Villages Association, Hyams Beach business owners Jerrinja Land Council, Booderee National Park, Rural Fire Services and Crown Lands.

3. General Manager to invite any other relevant staff and agencies he thinks may need to attend.

4. That Council investigate the feasibility of another road out of Hyams Beach – as shown on the attached sketch plan

5. General Manager (Director Assets and Works) investigate the use of the old tip site for use as car parking for a Park and Ride option – as shown on the attached sketch plan

6. Items from Parts 4 & 5 above be given consideration at the above requested meeting.

to undertake several actions in relation to the issues that had been identified as result of peak visitation days over the Christmas period.

To address components of Min 18.13 two workshops were held with key stakeholders of Hyams Beach, Government and surrounding community. These workshops were attended by community representatives, State Government representatives (Police, NPWS, RFS), Business representatives, representatives from HMAS Creswell, Tourism Board members, Councillors and Council staff.

The workshops provided an opportunity for each of the stakeholders to outline the key issues that they believed needed to be addressed to manage the peak tourist season at Hyams Beach. The measures that had been undertaken during the December/ January tourist period and the effectiveness of these were also outlined and discussed.

Participants were provided the opportunity to make presentations, ask questions and contribute to round table discussions. The focus of both workshops was:

· Key issues identification

· Evaluation of Christmas period trial (what had worked and what needed to be improved)

· Actions required for Easter period

· Resource needs

· Possible long-term solutions

Community Contributions

The Hyams Beach Villagers Association made several presentations within the two workshops. The key areas that they would like addressed for Hyams Beach include:

· Stop the excess traffic in the village

· Continue traffic management to improve flow and safety

· Improve infrastructure for visitors and residents

· Strengthen ranger authority

The community also outlined that a number of measures that had been used over the Christmas period had been successful. They also explained where there were areas for improvements and measures that needed to be changed or adjusted.

A focus of both workshops was a need to ensure measures were in place over the forthcoming Easter period. A full review of the traffic management plan and an incorporation of traffic measures as suggested by the community, additional waste services, porta a loo, rangers, communication, tourism stall options and signage were also outlined.

It should be noted that there were some community members who did not agree with some of the approaches to be adopted including the closure of some roads and communication methods which discouraged people from attending Hyams Beach. It was explained that there are several stakeholders that obtain income and business from this location and that the needs of all parties should be considered in any long-term solutions.

All agreed that there is a need to ensure that the experience of visiting the Shoalhaven and Hyams Beach was pleasant for tourists and that tourism remains an important component of the Shoalhaven economy.

Proposed Easter Action Plan

In response to the contributions of the community, an approach for the Easter period was developed, with an Easter Action Plan created. This plan has been supported by those in attendance at the workshop with consensus on the approach to be adopted reached. The Action Plan is provided as Attachment 1.

The key components of the Plan are:

· Traffic management which includes traffic control from the top of Booderee Avenue, one-way traffic options, the use of a temporary roundabout at the top of Booderee Avenue and Naval College Road

· Two VMS signs to be installed at Huskisson turn off and top of Booderree Ave

· Location of a tourism information stall at the top of Booderee Ave

· A traffic study to be conducted over Easter to determine traffic and pedestrian counts

· Additional signage to manage foot traffic

· A shuttle bus service – which will include a number of drop off and pick up points around Vincentia

· Ranger allocation including one dedicated ranger and one dedicated parking officer

· Additional support from NPWS for illegal camping activities

· Closure of little Hyams beach access

· Additional port a loo – two are Seamans Beach and two at Cinnamons beach

· Screening of port a loo to protect surrounding neighbours

· Some temporary treatment to the access to Cinnamons Beach

· Additional bins

· Communication and promotion options

· Option of provision of Booderee Day Passes once Hyams Beach access is closed

This plan has been worked on by a number of Council departments and is currently in progress in preparation for the Easter period. Planning for most of measures outlined in the plan are well advanced.

Although planning for implementation is well advance the provision of budget and resource allocation is pending the outcome of this report to Council. There are a number of additional budget items which cannot be absorbed into existing budgets and which will require a specific allocation from Council. These are outlined within the section below.

Resource Needs and Implications – Easter Trial

The additional allocation of traffic management, ranger patrol, communications and overall management of this peak event requires a number of Council resources and budget allocation that is outside of allocations already provided for this financial year.

A breakdown of the additional budget allocation and resources that will be required to support the Easter Trial are as follows:

Resource	Details	Cost
Rangers	Additional staff time and resources	$7000
Tourism	Additional staff time and resources	$5000
Traffic control including VMS	Traffic management and VMS provision	$20,000
Traffic Study	Provision of traffic counters and traffic measures	$21,000
Waste Management	Provision of additional bins	$2000
Shuttle Service	Two buses 8 hours per day continuous loop. Signage and promotion.	$ 15,000
Booderee Day Passes	TBC confirmed	Est $4000
Communication	Additional staff resources and materials	$3000
Coordinator	A key operational person to run the “event” on the ground (4 hours x 4 days)	$1800
	Total	$ 78,800

These additional requirements have not allocated and will need to be adopted by Council to enable to trail to be put in place.

There will be a total of ten Council staff either rostered on location or on call for each day of the Easter period. There will also be four traffic controllers and 6 traffic counters.

Future Measures – Community Engagement

A full evaluation of the Easter Trial will occur following implementation and a report on the outcome provided to Council. Consideration of the school holiday period and future peak periods will also need to be undertaken.

The workshops held with both Councillors, Council staff and community representatives were part of ongoing community engagement with the key stakeholders invested in determining a long-term solution for the peak period congestions and other issues experienced in the Hyams Beach locality.

There remains the need to continue the conversation about tourism management, sustainability and the impact of tourism during peak periods across the Shoalhaven and for this engagement to include stakeholders at Hyams Beach, but also include stakeholders from all affected locations in the Shoalhaven and our ratepayers. Discussions about investment of resources in this locality and other localities long term in an “event management “style approach will be ongoing.

An initial draft Action Plan of long term possible solutions has been created and will be further developed as part of ongoing community engagement process.

Financial Implications

There are ongoing financial implications of supporting ongoing trials and resource needs for Hyams Beach. Allocation of significant resources into this one location has future implications for the Shoalhaven and Council will need to continue to manage expectations within this discussion. Whether this approach continues to be sustainable needs to be considered in line, with others needs for the City and locations that may also experience an influx of tourists during peak periods.

A full breakdown of the investment in resources and budget to manage this “peak tourist event” for both Christmas and Easter will be provided as part of a future evaluation report to Council.

Risk Implications

There are significant risks in not addressing the issues that remain in Hyams Beach during peak tourist periods including (but not limited to), reputational risk, safety of residents and visitors, management of emergency situations, destruction of environment, reduced amenity of residents and staff management and safety concerns. The risk within this location needs to be managed efficiently and effectively to ensure that a positive outcome is achieve for all stakeholders involved.

Strategy and Assets Committee – Tuesday 20 March 2018

Page 29

SA18.47 South Coast Regional Jobs Initiative Grant - Greenwell Point Boating Facilities

HPERM Ref: D18/85372

Group: General Manager's Group

Section: Economic Development

Purpose / Summary

To accept a Grant under the South Coast Jobs Initiative funding package from the Australian Department of Industry, Innovarion and Science for additional boating facilities at Greenwell Point

Recommendation

That Council:

1. Accept the grant of $744.339 towards the cost of additional boating facilities at Greenwell Point under the South Coast Regional Jobs Initiative.

a. The Contract be signed by the General Manager

2. Vote $750,000 from the Economic Development Reserve towards this project as its contribution.

Options

1. Accept the recommendation as written and accept the grant

2. Propose an alternate recommendation

3. Not accept the grant and advist the Australian Government accordingly

Background

In April 2017 The Australian Government announced a $220 million Regional Jobs and Investment Packages (RJIP) to support the Australian Government’s commitment to stimulate economic growth in Australian regions. The South Coast Region (Shoalhaven, Eurobodalla and Bega Valley) was to receive $20 million.

The program was to drive economic growth and create jobs in the ten pilot regions by investing in projects that will diversify regional economies, stimulate long term growth, deliver sustainable employment and enable applicants to enter new markets and sectors.

Grant funding was to be up to 50 per cent of eligible project costs. Applicants were required to provide the remaining 50 per cent as co-funding towards their project.

The Project

The project consists of the construction of a new floating pontoon system to increase berth capacity at Greenwell Point. Council has commissioned TLB Engineering, a maritime engineering firm to develop two concept designs.

Option 1 as per layout below has 16 berths and an additional pump out berth. Berths range in length from 8m through to 15m in length. Further investigation is required as to whether the orientation would be suitable with regard to local tides and currents.

Option 1 berth layout

Option 2 layout yields 18 berths plus a pump out berth and temporary berth. This layout is better orientated regarding local currents but further work needs to be undertaken.

Option 2 berth layout

The aim of the project is to increase capacity at the Greenwell Point Fisherman’s Wharf – for commercial fisherman, charter boat operators and visitors. Much of the charm of Greenwell Point is its ties with commercial fishing and history as a fishing port and so it is important to cater for fishers, charter boat operators and touring vessels alike.

Part of this project is to develop a final design and then seek community feedback. As the design is not finalised all projected income and benefits have been calculated on a conservative berth yield of 12 berths while costings have been based on the construction of the more expensive option B. Based on a conservative yield of 12 berths the mix of designated berth categories will be as follows:

· Visiting/transient seafarers travelling up/down the east coast of Australia (4 berths)

· Commercial operations (8 berths) – being either fishing charter boats or commercial fishers

It is expected that many of the larger commercial vessels will prefer to use the Crown owned Tee-head Jetty.

This project is expected to create a minimum of 9 FTE’s through the Charter vessel industry. Economic benefits are valued at $4.6M per annum.

Community Engagement

As part of the project there will be a community consultation phase. The larger wharf at Greenwell Point is primarily for the trawlers and fishing vessels. The smaller trawlers and charter fishing vessels have been, in recent years, left out of the equation.

This project will try and address this with a facility more suited to the small to medium vessels.

Policy Implications

The berthing of vessels has been contentious in recent years. The lack of maintenance of the facility has been the subject of works by the NSW Govt, Council and the various wharf committees and boat owners.

Financial Implications

The funding from Council is available from within the Economic Development Reserve.

At a later stage berth leasing arrangements will need to be developed and incorporated into an Expression of Interest from businesses/individuals wishing to occupy a berth from within the facility.

Strategy and Assets Committee – Tuesday 20 March 2018

Page 66

SA18.57 Encroachment onto Public Reserve - 1 Walton Way, Currarong

HPERM Ref: D18/24295

Group: Assets & Works Group

Section: Business & Property

Attachments: 1. Plan - Encroachment onto Dolphin Reserve ⇩

2. Building at 1 Walton Way which encroaches onto Dolphin Reserve ⇩

3. Fencing Encroachment onto Dolphin Reserve ⇩

4. Fencing Encroachment onto Dolphin Reserve ⇩

5. Submission by PDC Lawyers ⇩

Purpose / Summary

To consider a request from the owner of a property adjoining Dolphin Reserve at Currarong that Council support an application to the Land and Environment Court for orders under the Encroachment of Buildings Act 1922 which will have the effect of authorising an encroachment onto public land.

Recommendation

That Council resolves to:

1. Support an application by the owner of Lot 220 DP 16854 at 1 Walton Way Currarong, Robin Nicholas Graham, to the Land and Environment Court of New South Wales for an order under the Encroachment of Buildings Act 1922 that an easement right be created in relation to the encroachment onto Council owned land known as Dolphin Reserve at Currarong comprised in Lot 222 DP 16584 and shown by hatching on Attachment “A” provided that the easement is extinguished upon demolition of the building which forms the encroachment;

2. Take no action in relation to the other encroachments onto Dolphin Reserve in the form of fencing adjacent to the western boundaries of properties at 3 to 9 Walton Way inclusive other than to acknowledge the encroachments and to inform the registered proprietors of those properties that Council requires that fencing be relocated to the surveyed boundaries whenever the properties are redeveloped for any reason; and

3. Grant authority to affix the Common Seal of the Council of the City of Shoalhaven to any document required to be sealed and to delegate to the General Manager the authority required to finalise this matter including, if required, any submission to the Land and Environment Court of New South Wales in relation to an application for orders under the Encroachment of Buildings Act 1922 in (1) above.

Options

1. Proceed in accordance with the recommendation.

Implications. This will deliver a compromise solution to the problem of an encroachment onto public land which does not adversely impact the long term public interest and which provides certainty that the encroachment will be removed when the building is demolished because it is has reached the end of its useful life and/or is to be redeveloped.

2. Adopt a resolution which supports a Land and Environment Court order that the land be sold to the adjoining owner.

Implications. The alienation of this parcel of public land comprising part of Dolphin Reserve at Currarong is not recommended.

3. Resolve that all enroachments onto Dolphin Reserve, Currarong are to be removed immediately.

Implications. The owners of the properties at 1 to 9 Walton Way inclusive will be required to pay for the cost of the removal of fencing and other structures AND to instal new fencing on the correct alignment as confirmed by survey (Council may have to pay half the cost of the new fencing estimated at $4,000).

4. Allow the encroachments to remain.

Implications. Dolphin Reserve is community land categorised under the Local Government Act 1993 as “Park”. The adopted generic plan of management for parks is opposed to alienation of public land and promotes the removal of existing encroachments.

5. Propose an alternative and provide further direction to staff.

Background

Dolphin Reserve at Currarong is comprised in Lot 222 DP 16854 located at the western end of Piscator Avenue fronting Currarong Creek at the point where the creek discharges into the Pacific Ocean. The land is classified “community” land and categorised as a “park” under the Local Government Act having been acquired by Council from Princelands Limited (Halloran) in 1955.

The transaction involving the transfer of a number of lots within the village of Currarong from Princelands to Council was finalised in 1956 when a transfer was executed by both parties and registered as Dealing G449155 by the Registrar General. It is noted that the land was acquired for public recreation purposes even though Princelands transferred the land as an estate in fee simple ie it had not been set aside as public garden and recreation space or as a public reserve in a private subdivision.

There are five (5) residential lots in Walton Way which have boundaries contiguous with the eastern boundary of Dolphin Reserve and survey confirms that all five (5) properties encroach onto the reserve. The property at 1 Walton Way is developed as a residential property with a stand-alone holiday rental which encroaches onto Dolphin Reserve by as much as 2.69 metres whereas the other four (4) properties have enclosed part of Dolphin Reserve without authority. All five properties have encroached onto the reserve by between 3 and 3.29 metres – Attachments “2”, “3” and “4” show fencing which encroaches onto the reserve.

Survey History

The Currarong Estate was developed in the late 1920s early 1930s by Henry Halloran as the “Governing Director” of the company which owned the land at the time (prior to Princelands becoming owner) - the Council of Clyde Shire approved the subdivision in July 1927, survey was carried out in June 1928 and the Council Clerk’s Certificate was issued in July 1929.

Current Request

PDC Lawyers act for Robin Nicholas Graham, the owner of the property at 1 Walton Way Currarong, and have made a submission to Council with the objective of securing Council’s support for an application to the Land and Environment Court for orders which will effectively authorise the occupation of public land. The submission by PDC Lawyers is set out on Attachment “E” and is summarised as follows:

· As a result of an historical error in approximately 1932, the fencing on the boundary of Dolphin Reserve is actually 3 metres inside the boundary of the reserve.

STAFF NOTE: the assertion of an historical error (ie a survey error) implies an error by the original surveyor and this is not endorsed by Council staff. It is acknowledged however, that fencing had been erected on an incorrect alignment and over the years subsequent development did not address the problem of fencing not being on the correct boundary.

· A cottage was built on the property at 1 Walton Way in 1938 and part of that building encroaches onto Dolphin Reserve.

STAFF NOTE: The building which encroaches onto the reserve is a stand alone building which is a holiday letting. It is not clear that this building was constructed at the same time as the main building was erected on the land.

· The client has previously corresponded with Council with a view to ascertaining a means of remedying the encroachment.

STAFF NOTE: Council advised Mr Graham (and Ms Shields) in August 2013 that Council would not be taking action to rectify the encroachment and that the resolution of Council dated 20 August 2013 inviting a planning proposal to reclassify the part of the reserve enclosed with private property remained Council’s current position.

Furthermore, it is noted that the owner of the property has a current development consent to remove the encroachment and it would appear that he is reluctant to act on that consent.

· As a consequence of having been made aware of the Encroachment of Buildings Act 1922, Mr Graham consulted PDC Lawyers who have now taken instructions to the effect that orders of the Land and Environment Court are to be sought to have transferred to Mr Graham the part of Dolphin Reserve occupied by Mr Graham as a result of the encroachment.

Encroachment of Buildings Act 1922

An adjacent owner or an encroaching owner may apply to the Court for relief under this Act in respect of any encroachment.

On application, the Court may make such orders as it may deem just with respect to:

· the payment of compensation to the adjacent owner;

· the conveyance, transfer or lease of the subject land to the encroaching owner, or the grant to the encroaching owner of any estate or interest therein or any easement right or privilege in relation thereto; and

· the removal of the encroachment.

PDC Lawyers propose the making of an application to the Court for orders that the part of the common boundary between Lot 222 DP 16854 and Lot 220 DP 16854 is to be adjusted westwards, to correspond to the existing alignment of the fence on the basis of the following commitments:

· the applicant will prepare any necessary applications and plans to give effect to the boundary adjustment referred to above;

· the applicant will pay the costs and expenses for the preparation of such applications and plans, and for their lodgement with the appropriate authorities; and

· Council is to sign all necessary documents to enable such application and plans referred to above to be lodged with appropriate authorities.

Consultation

The submission by PDC Lawyers has been circulated internally for comment and only the Recreation, Community and Culture Manager and Strategic Planning Manager have raised concerns about agreeing to any proposition by which part of Dolphin Reserve is alienated.

The Strategic Planning Manager’s comments are discerning and serve to inform Council that discussions with the landowner on matters relating to Dolphin Reserve and the encroachment date back to 2006:

“Strategic Planning have been involved in discussions with Council’s Property Unit and the landowners of 1 Walton Way, Currarong as early as the Citywide LEP process which commenced in 2006. More recently, we met with the landowners on 16 June 2016 and subsequently wrote to them on 8 July 2016. The meeting and written advice provided options in terms of proceeding with rectifying the encroachment, these included:

- Claim of adverse or possessory title – it was noted that this would not be an eligible claim as adverse or possessory title can only be applied for over the whole title of land.

- Proceedings with the Land and Environment Court under Section 3 of the Encroachment of Buildings Act 1922 – it was recommended that the landowner obtain their own legal advice with respect to pursuing this option.

- Sale of part of the land (i.e. Dolphin Reserve) containing the encroachment – this was not a possible option due to the classification of the land as ‘Community’, and such sale of the land is prohibited under the Local Government Act 1993. Sale of the land could only be considered if the land was classified ‘Operational’, a Planning Proposal would be required to do so.

- Removal of the encroachment by way of a DA for partial demolition of the structure. It was also noted that an active Development Consent exists of the site that involves the partial demolition of the structure to rectify the encroachment. The landowner advised that this was not a viable option as it would involve partial demolition of the existing dwelling.

A meeting was held on 6 November 2017 with the landowner, his surveyor and legal representative, Mike Harben and myself following receipt of correspondence that the landowner wished to proceed to make an application to the Land and Environment Court under Section 3 of the Encroachment of Buildings Act 1922. The intention of the application was explained to be for the transfer of land. During the meeting it was advised that the landowner or his representatives should prepare a response to Council which included a report from the registered surveyor to explain the history of the site and the encroachment.

I have reviewed the documentation provided by PDC. Information contained within the letter indicates that they wish to make an application for land transfer rather than an easement. Compensation is also raised as an item of consideration.

Despite the occurrence of the error in survey or error in erection of the rear boundary fence on public land, the fact is that the land in which the encroachment exists is public land. A precedent should not be set by this particular situation whereby Council agrees to sell land reserved for community purposes.

In considering the options available, Strategic Planning agree to support an application for an easement for the life of the structure. The easement is considered to be a fair balance between enabling the existing dwelling to remain for the remainder of its life and also preserving the land for its eventual use by the public as it was originally intended for.

However this proceeds, Strategic Planning will need to be advised of the eventual outcome to ensure that any necessary housekeeping amendments are made to the LEP. It may be necessary that we seek our own legal advice in respect to the issue of the zoning and classification of the land to determine what requirements Council will need to fulfil in the instance that the application to the Land and Environment Court is grant by a land transfer.”

Encroachments

It appears likely that the encroachments date back to the time when the land was first surveyed and the boundaries of Lot 222 DP 16854 were not properly identified when the first fencing was erected. It is also likely that a series of events ie construction of housing, took place without the problem of fencing on the incorrect alignment being recognised.

It is important that the owners of the properties which have encroached onto Dolphin Reserve be put on notice that Council is aware of the encroachments and requires that when the properties are redeveloped, the encroachments are to be removed at that time.

Compensation

The PDC Lawyers’ submission discusses the issue of compensation in a way that suggests that it is unlikely that a Court will issue orders as to compensation. This may well be the case but that is a matter for the Court.

In all other property dealings, if Council is to consider the granting of an easement for any purpose, compensation is an issue to take into consideration. It follows then that in this case Council can elect to support an application for a Court order but it should do so on the basis of compensation being payable.

If the Court is to consider the grant of an easement in accordance with the provisions of the Encroachment of Buildings Act 1922, it has to consider all aspects of the case including any submissions made to it and therefore compensation for the loss of public land, even if only temporary, is going to be a very important consideration.

If this matter proceeds to the making of an application to the Land and Environment Court, Council will have an opportunity to make a submission to the Court and that submission will address the issue of compensation.

Method of Disposal

The submission by PDC Lawyers is predicated on seeking orders from the Court with respect to disposal of the land rather than lease or a grant to their client of an estate or interest or easement right or privilege.

The justification put forward relies on the view that nothing changes for Council and that Council has never been cognisant of the encroachment nor has it ever used the land which is the subject of the encroachment.

The argument put forward by the Strategic Planning Manager in support of the retention of public land unless there is compelling reason to do otherwise has merit as does the need to seek to avoid an unwanted precedent.

A compromise position which protects the interests of all parties involved by the creation of an easement would appear to be a sensible outcome and worthy of support in this case.

Community Engagement

Currarong Community Association (Currarong CCB)

This matter was discussed at a meeting of the Currarong CCB on 17 February 2018. The following is an extract from the minutes of that meeting:

“Attended by Council's Mike Harbin and the owners of 1,3 & 5 Walton Way, who all spoke on the issue of the encroachment onto Dolphin Reserve. Several members also spoke and asked questions. The following is a summary of the key points:

a. It was a unanimous view that the land affected by the encroachment should not go back to public land. This was based on the fact that the fence line of 1 to 9 Walton Way has historically always been where it is today and the community does not see that this should change.

b. The meeting does not have a preferred position on what remedy to the encroachment should take place. It was the view that this should be left to the landowners, Council and Courts to decide, in the event legal action takes place.

c. The owners of 1 Walton Way stated that their intention (notwithstanding the ultimate determination on the encroachment), is to keep the historical cottages which they describe as "vitally important in maintaining the quaint character of the village". This is also supported by the community who value the historical context of the cottages.”

Whilst the CCB is of the view that the area encroached upon should not go back to public land, the CCB does concede that the remedy to the encroachment should be left to the landowners, Council and the Courts to determine.

The recommended course of action which supports an application to the Land and Environment Court for orders requiring the creation of an easement right to protect the interest of a private landowner for the life of the encroaching building does not adversely impact the public interest nor is it opposed to the view of the CCB.

Strategy and Assets Committee – Tuesday 20 March 2018

Page 83

SA18.59 Nowra Bridge Project - RMS - Preferred Option Announced

HPERM Ref: D18/56785

Group: Assets & Works Group

Section: Asset Management

Attachments: 1. Nowra Bridge Project Preferred Option RMS ⇩

2. Have Your Say - Nowra Bridge Project - RMS ⇩

3. Nowra Bridge Project – Preferred Option Report - RMS (under separate cover) ⇨

Purpose / Summary

To report on the NSW Roads and Maritime Services (RMS) preferred option for the Nowra Bridge Project.

Recommendation (Item to be determined under delegated authority)

That Council provides the following response to the NSW Roads and Maritime Services (RMS) request for comment on the preferred option for the Nowra Bridge Project;

1. Council is very disappointed that its preferred option of grade separated intersections at each location (Bolong Road to Bridge Road) is not being pursued.

2. Council thanks the RMS for acknowledging that the preferred option report overstated the involvement of Council staff in the shortlisting process that arrived at the RMS preferred option. The Council staff assisted in the devlopment of options for consideration.

3. Council sees that the “at grade” option is being proposed is a short term solution only, and the State Government needs to bring forward the planning and construction of a Nowra-Bomaderry Bypass in the medium term.

4. In addition to the minuted comments (reproduced in the body of this report) Council made at the RMS breifing to Councillors on Thursday 22 February, and given that the RMS is only seeking feedback (during the period from 19 February 2018 to 23 March 2018) on a conceptual layout of its preferred option, Council also makes the following request/comments:

a. There is likely to be significant upstream and downstream impacts following construction of the Nowra bridge project. The bridge project, in conjunction with the Berry to Bomaderry upgrade, will bring forward the need to extend 3 lanes of traffic in each direction continuous through Bomaderry and South Nowra.

b. Similar to the requirement to maintain a free left slip lane into Illaroo Road off the Highway, it is not clear whether the proposal maintains the free left slip lane out of Bridge Road on to the Highway. Previous attempts by the former RTA to control those movements have failed (causing significant impacts to the Highway and Bridge Road). Both of these free flowing movements are essential to maintain and ensure a free flowing network, and must be incorporated into the design of the new bridge.

c. Given that RMS were able to confirm at the briefing that there will be turn restrictions on Bridge Road at the intersection with Scenic Drive, there is a need for RMS to do a thorough assessment of the resulting traffic impacts at the intersection of Bridge Road and Hyams Street (Council believes traffic signals will be required in the short term).

d. The changes at the intersection of Bridge Road and Scenic Drive will present an opportunity to incorporate a pedestrian refuge on Bridge Road (immediately south of Scenic Drive) without impacting two lanes of southbound traffic, and this should be included

e. Council believes traffic signals will also be required at the intersection of Illaroo Road and Fairway Drive (access to Greys Beach and the Nowra Golf Club) where the project is likely to terminate

f. With regards to urban design, Council requests that the RMS urban design consultants work closely with Council (and Council’s urban design consultants) to ensure integration between the Nowra bridge project and the river foreshore masterplan.

g. Pedestrian and cyclist considerations will need to be more thoroughly examined once more detail is released.

h. The use and integration of the old bridge will need to be more thoroughly examined once more detail is released.

5. Given the level of detail provided to the public is still preliminary (concept layouts provided only, with no detailed engineering), there are still many questions to ask with regards to how the proposal will impact on Council’s assets and property, and how it will integrate with Council’s other planning. Accordingly, Council requests that RMS provides more detail, and increase its level of communication with Council so that more ‘detailed’ feedback can be provided in a timely manner, and more certainty can be provided to allow Council to finalise its other plans.

6. RMS confirm that the downstream historic bridge will remain in State ownership and be maintained by the State Government in perpetuity.

Options

1. Adopt the recommendation

2. Make another recommendation, or resolve not to make a submission

Background

On 19 February 2018 the NSW Roads and Maritime Services (RMS) announced their preferred option for the Nowra Bridge project and invited community feedback on the proposal.

In making their announcement, the RMS provided the following statement:

The NSW Government has invested $1.6 million, with the Federal Government committing $10 million, for planning a new bridge on the Princes Highway over the Shoalhaven River at Nowra.

A preferred option has been developed for the project and includes:

· A new northbound four lane bridge

· Reconfiguration of the existing concrete bridge to carry three lanes of southbound traffic

· Intersection upgrades at Illaroo Road, Bolong Road and Bridge Road

· New Pleasant Way T-intersection

· Keeping the old southbound bridge for pedestrians and cyclists.

Key benefits of the preferred option:

· Improving safety, capacity and efficiency across the Shoalhaven River at Nowra

· Improving freight movements and access to the South Coast of NSW

· Better traffic flow now and into the future

· Improving pedestrian connectivity

· Preserving the heritage of the old southbound bridge.

The Preferred option for Nowra Bridge project is currently on display until Friday 23 March 2018.

Briefing of Council

On Thursday 22 February, members of the RMS project team came to Council to brief Councillors and staff on the proposal, and answer questions.

The following is a summary of key points raised/discussed during the briefing (as documented by RMS).

· RMS acknowledges the preferred option report may have overstated Council’s involvement in shortlisting options.

· A number of options, including at grade and grade separated intersections, were considered as part of the options assessment. The preferred option delivers traffic improvements while not sterilising the network for future upgrades.

· The upgrade will provide three lanes in each direction on the Princes Highway between Bolong Road and Moss Street.

· Relocating Pleasant Way south to a new intersection considers future development in the immediate area.

· An underpass for Pleasant Way near its current location would be vulnerable to flooding.

· The additional lanes on Illaroo Road will extend about 200 to 300m. This detail is still in development.

· The right turn lanes from Princes Highway to Bridge Road will increase in length. This detail is still in development.

· RMS agrees to investigate the following design amendments which were raised by Council during the briefing:

o Dedicated left turn lane from Illaroo Road to the Princes Highway

o Acceleration/slip lane on Illaroo Road for traffic entering from Princes Highway northbound.

o Maintaining a left turn from the Princes Highway to Pleasant Way. All other turning movements to be removed. The proposed Lyrebird Drive connection will provide all turning movements via a signalised intersection.

o Increasing right turn storage at Bolong Road to accommodate one B-double.

· RMS is currently working with council on the Nowra Bomaderry integrated traffic plan. This project is independent of the Nowra Bridge project.

· RMS will accept late submissions from Council should they require additional time.

The above list of concerns and design amendments (raised at the briefing) was not exhaustive (these were raised following the limited time staff and Councillors had to consider the proposal prior to the briefing). There were additional matters raised at the meeting that were not documented above, these are noted below.

Current Outstanding Issues

The revised design has not addressed all of Council’s concerns.

Further to the matters document by RMS at the Councillor briefing, the following additional matters also need to be addressed:

· Council only accepts the at grade proposal on the condition that the Government bring forward the planning and construction of the western Bypass of Nowra-Bomaderry.

· There is likely to be significant upstream and downstream impacts following construction of the Nowra bridge project. The bridge project, in conjunction with the Berry to Bomaderry upgrade, will bring forward the need to extend 3 lanes of traffic in each direction continuous through Bomaderry and South Nowra.

· Similar to the requirement to maintain a free left slip lane into Illaroo Road off the Highway, it is not clear whether the proposal maintains the free left slip lane out of Bridge Road on to the Highway. Previous attempts by the former RTA to control those movements have failed (causing significant impacts to the Highway and Bridge Road). Both of these free flowing movements are essential to maintain to ensure a free flowing network, and must be incorporated into the design of the new bridge.

· Given that RMS were able to confirm at the briefing that there will be turn restrictions on Bridge Road at the intersection with Scenic Drive, there is a need for RMS to do a thorough assessment of the resulting traffic impacts at the intersection of Bridge Road and Hyams Street (Council believes traffic signals will be required).

· The changes at the intersection of Bridge Road and Scenic Drive will present an opportunity to incorporate a pedestrian refuge on Bridge Road (immediately south of Scenic Drive) without impacting two lanes of southbound traffic, and this should be included

· Council believes traffic signals will also be required at the intersection of Illaroo Road and Fairway Drive (access to Greys Beach and the Nowra Golf Club) where the project is likely to terminate

· With regards to urban design, Council requests that the RMS urban design consultants work closely with Council (and Council’s urban design consultants) to ensure integration between the Nowra bridge project and the river foreshore masterplan.

· Pedestrian and cyclist considerations will need to be more thoroughly examined once more detail is released.

· The use and integration of the old bridge will need to be more thoroughly examined once more detail is released.

Impact on Existing Projects & Interests

Council have a number of existing strategic planning projects and property interests which relate to the land within proximity to or that could be directly affected by the Nowra Bridge Project.

Council’s Strategic Planning Section are currently undertaking a range of projects that are relevant in this regard, with the most significant being the Nowra Riverfront Precinct master planning project. Below is a summary of the relevant strategic planning projects and the potential impacts or uncertainties resulting from the Nowra Bridge Project.

Nowra Riverfront Precinct

The riverfront precinct covers land to the east and west of the Highway as shown in the figure below. Master planning work has been underway for some time pending the release of information in regard to the bridge project.

Nowra Riverfront precinct area – outlined in red.

In October 2017, the Nowra Riverfront Strategic Direction: Review and Analysis was completed by the project consultants (Studio GL) and reported to Council when it was resolved that:

1. Receive this update on the progress of the Nowra Riverfront Precinct planning work for information; and.

2. Receive a further report once the draft detailed urban design controls have been prepared in accordance with the recommended strategic directions, that considers how to proceed with a potential Planning Proposal for new zones/building heights and supporting planning controls

3. In preparing the draft urban design controls, consider retaining the height controls within the citywide DCP chapter N7 and give further consideration to a more flexible height within the precinct east of the Osborne Street corridor.

Most recently, and just prior to the release of the RMS Preferred Option for the Nowra Bridge Project, the project consultant completed a report on Proposed Planning Controls for the precinct (suggested detailed urban design controls). This work will be reported to the Ordinary Meeting of Council on 27 March 2018.

At the time the final report on Proposed Planning Controls was prepared, the consultant noted the potentially significant impacts because of uncertainties including the Nowra Bridge Project. This detailed report needed to be advanced to provide some clarify around the likely future planning controls for the former Tourist Centre site and its surrounds

It should be noted that since commencing this master planning project, staff have met with RMS to understand potential impacts of the project. Subsequently, Council invited RMS to meet with our consultant to ensure that the design of the new bridge crossing and the southern intersection would ensure that a positive urban design outcome was achieved that responded appropriately to the context. This did not however occur.

The Nowra Bridge Project has the potential to impact the riverfront precinct project in respect to (but not limited to) land for acquisition and construction, access into the important precinct. Specifically:

· Development potential of the area west of the highway including the land in front of the Council Administration Building and the site of the former Riverhaven Motel - It is unclear based on the current material of the likely true extent of the land take;

· Potential disconnection of Scenic Drive from Bridge Road - It is unclear whether the existing intersection of Scenic Drive and Bridge Road will be maintained and if so in what form or arrangement. With the proposed southern intersection moving further south of its existing location, it is assumed that the current formation of the Bridge Road / Scenic Drive intersection cannot exist as it currently does;

· Closing off Pleasant Way and establishing a new intersection south of the existing multi-dwelling housing development at Hawthorn Street – need to understand the exact location of this and the implications associated with it; and

· Maintaining the existing heritage bridge for future public use - suitable connections will need to be made between the existing structure and the riverfront area, and specifically to ensure safe, accessible and convenient movement from one side of the bridges to the other (i.e. east to west of the Highway).

It has been difficult to progress this important masterplan to any level of detail until relevant detail on the new bridge is known. Whilst the information that has now been released is welcomed, it is still general in nature and not really detailed enough to inform the masterplan (e.g. what land take is needed)

Civic Precinct

The information released for public comment is limited in nature and therefore an assessment of the actual or real impact on the Civic Precinct (i.e. Council Administration Building, Shoalhaven Entertainment Centre, Harry Sawkins Park and surrounding car parking areas) cannot be accurately determined at this point.

Nowra CBD Urban Design Masterplan

The Nowra CBD Urban Design Masterplan was endorsed by Council in 2014 and establishes a vision for the broader Nowra CBD area and sets objectives to provide opportunities for the CBD to become an attractive, vibrant and popular destination.

Movement and access were a key aspect of the Masterplan which suggested that facilitating the movement of pedestrians and cyclists were crucial to the long-term sustainability of towns and cities. It also aimed to establish Nowra as a cultural gateway, improve the public domain and encourage opportunities for activity and vibrancy if key areas including the Nowra Riverfront.

In relation to the Nowra Bridge Project, the masterplan generally sought to improve pedestrian links across the highway, potential upgrade of the river promenade, and proposed major gateway to the CBD. Specifically:

· Improve the urban design quality of the Nowra CBD including the Nowra Riverfront as the gateway to the CBD;

· Improve access between the Highway, CBD and Riverfront as well as along the river; and

· Provide safe and convenient access for the Shoalhaven Hospital.

It is important that the Nowra Bridge Project consider the masterplan and its specific urban design goals and objectives that are noted above

Urban Design General

The construction of the new bridge must consider the urban design and visual amenity/impact of the southern side for the Shoalhaven River as the main entry into the Nowra CBD.

The design of the new bridge crossing has been a significant concern by Council which has been raised with RMS numerous times as it has the potential to create a poor aesthetic as the entry point into the CBD. It also has the potential to impact access between the east and west of the Princes Highway as well as pedestrian / cycle access between the CBD and the riverfront precinct.

To ensure that this issue is appropriately considered moving forward it is imperative that RMS representatives meet with relevant Council staff and Council’s urban design consultants to consider appropriate ways to adequately address this and also integration with the ongoing Council planning projects mentioned above.

Community Engagement

The upgrade of the Princes Highway and associated community consultation is the responsibility of the State Government.

Staff have had limited discussions with concerned residents. It is understood most residents are corresponding directly with the RMS.

Policy Implications

N/A

Financial Implications

The conceptual drawings on exhibition do not give enough detail to fully assess the impact on council land and property. It would appear that several key council assets will in all likelyhood be obliterated.

However the details and any likely costs involved are unknown at this time. There will be further reports to Council as the project evolves and more detail is available.

Risk Implications

The financial viability of the commercial areas immediately downstream of the works could be affected if adequate access is not maintained.

The risk of traffic congestion at “traffic-lighted” intersections may reoccur sooner than anticipated compared to grade separated treatments.

Strategy and Assets Committee – Tuesday 20 March 2018

Page 101

SA18.62 Country Public Transport Infrastructure Grants Scheme (CPTIGS) - Revised Proposal Submitted

HPERM Ref: D18/68296

Group: Assets & Works Group

Section: Asset Management

Purpose / Summary

To allow Council to consider the revised proposal for providing new bus shelters using NSW Government Country Passenger Transport Infrastructure Grants Scheme (CPTIGS) 2015/17 and 2017/19 funding, and council funding.

Recommendation (Item to be determined under delegated authority)

That Council:

1. Accepts the grant funding offer under the NSW Government 2015/17 Country Passenger Transport Infrastructure Grants Scheme (CPTIGS) in part, being $50,000 for five new shelters (a reduction from the original 18 shelters approved).

2. Approves the revised strategy submitted to TfNSW on 26 February 2018 (approval from the NSW Government expected July 2018) that will provide a total of 11 new bus shelters and a relocation of one existing shelter, at priority locations over the course of financial years 2018/19 and 2019/20 (with 10 of the locations derived from the original approved list of 18), and to fund these shelters as follows:

a. financial year 2018/19 provide five new shelters and relocate one existing shelter using CPTIGS 2015/17 funds of $50,000 (being the NSW Government’s contribution towards the 5 new shelters) with Council to provide the balance of funding of $70,000 (a total estimated cost of $120,000) as follows;

i. Stewart Place Nowra Central Median Location 1 (from the original approved list)

ii. Stewart Place Nowra Central Median Location 2 (from the original approved list)

iii. Stewart Place Nowra Central Median Location 3 (from the original approved list)

iv. 173-177 Moss Vale Road Kangaroo Valley (from the original approved list)

v. 84 Greenwell Point Road Greenwell Point (from the original approved list)

vi. 84 Tallwood Avenue Mollymook (not on the original approved list, but a high priority for the community)

b. financial year 2019/20 provide six new shelters using CPTIGS 2017/19 funds of $50,000 (being the NSW Government’s contribution towards 5 of the new shelters) with Council to provide the balance of funding of $150,000 (a total estimated cost of $200,000), as follows;

i. Orama Crescent Central Median near Ophir Street Orient Point (from the original approved list)

ii. Leo Drive Western side before Matron Porter Drive Mollymook (from the original approved list)

iii. Leo Drive Eastern side before Matron Porter Drive Mollymook (from the original approved list)

iv. 90A Princes Highway Milton (from the original approved list)

v. 109 Princes Highway Milton (from the original approved list)

vi. 32 Alma Avenue Fishermans Paradise (not on the original approved list, but a high priority for the community)

Options

1. Adopt the recommendation

Implications: Estimated cost to council of $220,000 spread over financial years 2018/19 ($70,000) and 2019/20 ($150,000).

2. Endorse the original 18 bus shelters approved under the NSW Government 2015/17 (CPTIGS) program (not recommended).

Noting that Council resolved on 26 September 2017 to only accept the original offer of $180,000 to provide 18 new shelters “in principle”, pending further investigations of the locations, and development of an affordable delivery strategy.

Implications: It is estimated that delivery of all 18 shelters from the original approved list could cost Council in the order of $600,000 (total cost $780,000), and there is a risk that some of the locations would not meet the Government’s stringent accessibility criteria (meaning some of the grant funding could not be claimed).

3. Not proceed with any of the proposed projects.

Implications: This will mean these important local public transport improvements can’t be delivered, however this action will not commit Council to any expense associated with providing public transport improvements.

Background

In 2017, Council received an offer of funding from the NSW Government to provide 18 new accessible bus shelters across the City under the NSW Country Passenger Transport Infrastructure Grant Scheme (CPTIGS).

The funding offer was limited to $10,000 per shelter and Council would have to meet all other costs associated with construction and installation, which in some cases would have been significant. The funding was also conditional on meeting the Government’s stringent accessibility criteria, which would also not have been met in several locations.

In considering the funding offer, Council resolved on 26 September 2017 only to accept the funding offer “in principle”, electing to further investigate the locations and formulate an affordable strategy in consultation with the community.

The NSW Government subsequently advised Council that in reviewing the list, there would be no guarantee of approval, and the most likely outcome would be for Council to reduce the number of shelters but selecting from the original list.

The Government further advised that submissions for the next round of CPTIGS funding was due 28 February 2018 (extremely limited timeframe) and that Council could consider moving some locations to the next round, as part of a more affordable strategy.

Investigations (including consultation with bus operators) have revealed that not all of the locations approved in principle are priority locations and that not all of these will be affordable given the requirement for Council to cover the majority of costs.

A revised program was established to deliver a reduced number of bus shelters (12 locations in total) over the next two financial years. Under this more affordable strategy, it is proposed that the bus shelters will be partially grant funded under the 2015/17 and 2017/19 CPTIGS funding programs and partially funded by Council.

The locations and planned delivery timeline are listed below.

Financial year 2018/19

· Stewart Place Nowra Central Median Location 1 (from the original approved list)

· Stewart Place Nowra Central Median Location 2 (from the original approved list)

· Stewart Place Nowra Central Median Location 3 (from the original approved list)

· 173-177 Moss Vale Road Kangaroo Valley (from the original approved list)

· 84 Greenwell Point Road Greenwell Point (from the original approved list)

· 84 Tallwood Avenue Mollymook (not on the original approved list, but a high priority for the community)

Financial Year 2019/20

· Orama Crescent Central Median near Ophir Street Orient Point (from the original approved list)

· Leo Drive Western side before Matron Porter Drive Mollymook (from the original approved list)

· Leo Drive Eastern side before Matron Porter Drive Mollymook (from the original approved list)

· 90A Princes Highway Milton (from the original approved list)

· 109 Princes Highway Milton (from the original approved list)

· 32 Alma Avenue Fishermans Paradise (not on the original approved list, but a high priority for the community)

The above locations are confirmed as priority locations from local bus operators, and the following should also be noted:

Tallwood Avenue, Mollymook is a priority location which was not on the original approved list, and would not be eligible for CPTIGS, so is proposed to be fully funded by Council in 2018/19 (relocating the redundant shelter on the southern side of Tallwood Avenue, to the northern side at the existing bus stop east of Jones Avenue).

Fisherman’s Paradise is a priority location which was not on the original approved list, and would not be eligible for CPTIGS, so is proposed to be fully funded by Council in 2019/20.

All other locations were on the original approved list and can be delivered with part CPTIGS, part Council funding.

The shelters on the original approved list that are not proposed to be delivered include:

· Stewart Place, Nowra (a fourth shelter was included on the original approved list, but only three were required following review of the design in consultation with bus companies)

· Nooramunga Avenue, Cambewarra (northern side adjacent Reservoir Lane) not supported by bus companies as a priority location, within 400m of existing bus shelter

· 82 Penguins Head Road, Culburra (not supported by bus companies as a priority location, within 400m of existing bus shelter)

· 77 Wyoming Avenue, Burrill Lake (not supported by bus companies as a priority location)

· Mitchell Parade, Mollymook (western side near cemetery) not supported by bus companies as a priority location

· Mitchell Parade, Mollymook (eastern side near cemetery) not supported by bus companies as a priority location

· 300 Kings Point Road, Ulladulla (eastern side). Will be subject of a future report. Substantial cost required to provide a compliant facility. Insufficient information available prior to deadline for submissions. Investigations will continue and this site can be considered for the next round if feasible.

· 2565 Moss Vale Road, Barrengarry (near Bunkers Hill Road). Will be subject of a future report. Substantial cost required to provide a compliant facility. RMS approval required, and currently not known whether this will be forthcoming. Insufficient information available prior to deadline for submissions. Investigations will continue and this site can be considered for the next round if feasible and if RMS approval can be obtained.

Community Engagement

The original 18 nominated locations were compiled following suggestions made to Council by the local bus operators, without engineering investigations undertaken, nor any broader consultation with the community.

The revised proposal for a total of 12 priority locations has been compiled based on feedback from local bus operators, community consultative bodies and residents. Engineering investigations into the original nominated locations and a wider range of options were completed in refining these and revealed that not all of the originally nominated locations were feasible or practical.

The proposed list of 12 locations has also been advertised on the Get Involved Shoalhaven website and received positive feedback from residents as a result.

Policy Implications

N/A

Financial Implications

NSW CPTIGS projects have a limit of $10,000 funding provided by the NSW State Government for each new shelter, and any costs exceeding the $10,000 limit are at Council’s cost.

The estimated additional cost to council to provide the 11 new bus shelters and one shelter relocation is $220,000. This cost is proposed to be spread over the next two financial years ($70,000 in 2018/19 and $150,000 in 2019/20). A budget bid for these funds has been submitted on 31 January 2018.

The NSW State Government has already endorsed the revised strategy proposed using the CPTIGS 2015/17 funds, however a decision will not be made in relation to the CPTIGS 2017/19 funds until July 2018. Unfortunately the Government’s timeframes did not permit reporting of the revised program to Council prior to it being lodged by their 28 February 2018 deadline.

An invoice for 30% of the CPTIGS 2015/17 funds was submitted to the NSW State Government on 1 March 2018 as requested, following confirmation of the five locations proposed to be funded under this round of the grant.

Risk Implications

N/A

Strategy and Assets Committee – Tuesday 20 March 2018

Page 112

SA18.66 Interest Grace Period - Water Accounts

HPERM Ref: D18/49097

Group: Shoalhaven Water Group

Section: Water Customer & Business Services

Attachments: 1. Debtor Management Policy ⇩

Purpose / Summary

Council and the public were advised as part of the 2017 Integrated Strategic Plan (Operational Plan – Fees & Charges) that the current method of applying the pensioner rebate and facility regarding a grace period for the payment of water accounts may alter due to the implementation of a new water billing system. This report provides background to the interest grace period for the payment of water accounts by eligible pensioners and a proposal to offset this facility with an increase to the pensioner rebate.

Recommendation

That Council

1. Remove the extended grace period for the payment of eligible pensioner water accounts effective 1 July 2018.

2. Rescind Council resolution 1814 adopted 18 December 2007.

3. Increase the Council component of the annual concession for eligible pensioners under the conditions of Section 575 of the Local Government Act by $10.00 for the water availability charge and $10.00 for the sewerage availability charge effective 1 July 2018.

4. Adopt the amended policy 17/1 attached to reflect Part 1 of the Recommendation.

Options

1. Resolve as recommended and adopt the amended policy.

Implications: All eligible pensioner water account customers will obtain benefit of an increase to the concessions for water and sewerage availability charges. Customer confidence in business and billing integrity will be maintained by the use of a standard billing system configuration.

2. Not adopt the recommended changes and continue with the extended grace period for eligible pensioner accounts.

Implications: This option has an extreme risk of transactional error occurring with customer accounts. This is due to manual processing “work arounds” being required and such will necessitate the manipulation of system generated data. The additional workload in processing concession adjustments between billing periods will require additional resourcing to ensure entitlements are accurately applied.

Detail

The current water billing module has a number of exclusive functions that have been developed for Shoalhaven Water from the original version to accommodate specific requirements to meet Council resolutions. These are unique to Shoalhaven, they are not industry standard or contained within any available Local Government billing solution.

Council would be aware that new corporate systems are being implemented during 2018 and a water billing module is part of that process. With the implementation of the new water billing system it was anticipated that some changes would be necessary either in undertaking “work arounds” to enable functionality to be achieved or seeking alternative means to billing processes to meet customer and Council requirements. Some minor changes have already been implemented with little impact, however a change was forecast early regarding the grace period for eligible pensioner accounts.

Background

Water Accounts are levied to customers on a cyclic basis to co-incide with the reading of the water meter. Each customer receives a water account on a 90 day rolling schedule and owing to the size of the city, this necessitates weekly billing processes for 48 weeks of the year. As a consequence, the due date for payment of water accounts varies with each levy, in contrast to the Council rates account which is a city wide levy undertaken at the same time with the same payment due date.

All water accounts have a due date for payment 28 days after each levy is issued. A further grace period is given before interest charges are applied for unpaid accounts. This allows for any delays in postage or payment transactions which might occur beyond Council or the customer’s control.

Eligible pensioner account holders are provided with a further grace period totalling 365 days after the account is issued before interest charges are applied. However, it should be noted that if an account remains unpaid after 365 days, the interest which is calculated and levied is effective from the original due date of each account. This is an important distinction when considering a proposed upfront concession increase. The current pensioner account grace payment provision has no benefit to customers that do not pay an account within that period.

The grace period for eligible pensioner water accounts was commenced in 2007 to co-incide with the transfer of the water and sewer availablity charges from the rate account. For consistency this enabled continuation of the assistance measures as provided for the general rates.

Analysis

It was predicted that a standard system capable of splitting due dates for specific customer groups was unlikely to be obtained in the available commercial market. Consequently analysis commenced to capture the number of customers that take advantage of the grace period, the interest charge implications and income derived from overdue interest charges. Given the grace period is applied to water consumption charges, the dollar figures will differ between periods as individual customer water usage can vary significantly with charging/interest consequences. In addition, the payment of accounts occur at any time during the course of the grace period and therefore the analysis can only been taken as a snap shot in time.

There are currently 11,096 pensioner water accounts holders with 10,363 that pay both water and sewer charges. During the 12 month billing period from February 2017, Table 1 below shows a breakdown of customer utilisation of the grace period from the payment of accounts levied;

Table 1:

	11,096 Pension Accounts – Payment Status
Unpaid as at	3 months	6 months	9 months	12 months	12 months+
Number	1142	603	458	386	326
% Unpaid	10.29%	5.43%	4.13%	3.48%	2.94%
% Paid	89.71%	94.57%	95.87%	96.52%	97.06%

Payment analysis of pensioner accounts as shown in Table 1 indicates that 2.94% of pensioner accounts remain unpaid after the grace period (12 months+) and these customers obtain no benefit from the grace period.

The remainder of pensioner accounts (97.06%) either pay within the normal payment terms or progressively through the grace period.

In considering the effect of any removal of the grace period, the customers that delay payment to a point during the periods as shaded in Table 1, will be impacted from a change to the current facility if an offset increase to the concession is not given. This number represents 277 customers (603 at the 6 month point less the 326 that still remained unpaid after 12 months). It should be noted that there will also be customers within the 0-3 month point and customers that regularly and progressively make part payments that will be affected to some extent.

Option/Summary

Implementing a new billing system has presented Shoalhaven with a good opportunity to review the effectiveness of previously adopted practices. This review of the grace period arrangement has revealed that it only benefits a very small percentage of customers.

The option to remove the grace period and replace it with an increased Council component to all eligible pension concessions is more equitable. It will also provide direct benefit to off- set interest charges from delaying payments under the current grace period. Council would be aware that there has been no increase to the concession payable under the conditions of the Local Government Act for many years and therefore a Council facilitated increase is considered to be a positive outcome to pensioner account holders.

It is not intended to generate additional revenue through the interest income from overdue pension accounts with the removal of the grace period. The proposal is to provide a Council component amount greater than the net interest income as an off-set and to apply that increase only to the fixed availability charges.

As a first step, the amount of the proposed Council component has been calculated from the interest income which would be generated from the outstanding balances of those accounts in Table 1. This also enables a basis for ongoing review. That calculation has been further averaged on a per account basis across all the pensioner water accounts. The calculation is shown below in Table 2 below;

Table 2:

	Pension Accounts Outstanding Balances & Interest Income
	0-3 months	6 months	9 months	12 months	Total
Number of accounts	1142	603	458	386
Total Charges outstanding	$279,803	$164,263	$127,621	$124,974	$696,661
Annual Interest Income					$27,956
Per Account (11,096)					$2.52

The amount calculated from the interest income will clearly not provide tangible assistance to those 277 customers that utilised the grace period. The largest number of which did so in the periods up to the 9 month point. Assuming that a customer does not pay the water and sewer availability charges over this period, the accumulated interest levied for the unpaid charges would equal $18.65.

Taking into account the desire to provide direct assistance to all the eligible pensioner accounts and to off-set the use of a grace period, it is proposed to increase the Council component of the concession by $10.00 for sewer and $10.00 for water availability charges. Limiting the increased concession only to the availability charges will ensure that all connected pensioner accounts receive the full benefit and the same additional amount proportional to their entitlement.

The proposed increase to the pension concession has been assessed using a broad based analysis. Water consumption charges are “user pay” and therefore cases may arise involving high water use and where the grace period would assist. In these circumstances, Councillors would be aware that Shoalhaven Water has available for customers a Payment Assistance Scheme. This scheme has been in place since the implementation of the NSW Government Water Supply & Sewerage Pricing Guidelines in 2004 and it provides direct monetary support to customers in respect of water usage charges. Use of the scheme in lieu of the grace period would be appropriate and available as an alternative.

This assistance is available to all customers as a reponsible means to ensure that the essential water supply services can be maintained for customers that might be experiencing financial hardship. The scheme is largely managed by Community Agencies on behalf of Shoalhaven Water but senior staff can also provide scheme assistance on application. Since the implementation of the scheme, the annual funding has never been fully utilised and it is intended to increase the promotion of this scheme with the proposed change. It is considered that the pension concession and the Payment Assistance Scheme are both means to provide support to customers and therefore any individual impact from the removal of the interest grace period can be offset from these joint measures.

Community Engagement

The 2017 Integrated Strategic Plan contained advice that the method of applying the pension rebate and facility to provide a grace period may alter. Whilst the method of applying the rebate will not change, it is proposed to remove the grace period as indicated in this report. Shoalhaven Water provides an insert to accompany each water account and it is intended to undertake an information campaign over the next two billing quarters to highlight the staged changes consequent to the system implementation. The system changes include customer service response functions and e-billing account management improvements.

Draft Front Page of Account Insert

Policy Implications

The interest grace period was adopted in 2007 and is contained in Council Policy 17/1. It is therefore necessary to rescind the Council resolution 1814 adopted 18 December 2007 and adopt the attached amended Policy.

Financial Implications

The proposed removal of the grace will generate additional interest income from unpaid accounts however but this has been off set by the increased concession. The net additional expenditure is approximately;

Water fund – $107,114

Sewer fund – $76,690

Strategy and Assets Committee – Tuesday 20 March 2018

Page 124

SA18.68 Draft Proposal for 2018-19 Water and Sewer Charges

HPERM Ref: D18/62537

Group: Shoalhaven Water Group

Section: Water Customer & Business Services

Purpose / Summary

The purpose of this report is to provide a draft proposal for water and sewer charges for the 2018/19 financial year for Council’s consideration and direction as to any other options that should be analysed prior to public consultation.

Recommendation

That Council adopt the following proposal for inclusion in the draft 2018/19 budget:

1. Water Availability Charge 20mm – No increase from $82/connection

2. Water Usage Charge – No increase from $1.70/kL

3. Sewer Availability Charge 20mm – Increase of $18.00 per annum from $830 to $848 per annum.

Options

1. Adopt the recommended values.

Implications: This would result in a 1.4% increase to the total Shoalhaven Water account for water and sewer services for a residental household using 200 kL/annum or 1.5% for a household using 150 kL/annum.

2. Request further analysis of other pricing model alternatives and the implications.

Implications: Different pricing paths can be achieved by deferral or re-prioritisation of works (other than those where contracts are already let).

Background

The proposed 2018/19 water and sewerage budgets presented in this report have been derived by analysis of operating and capital drivers, with the aim of minimising increases in water and sewer charges. 10 and 20 year modelling of the funds have been undertaken.

Water Fund

The water fund has no loans outstanding and in 2017 had a net operating result for the financial year of $4.77M (see Note 21 to the Financial Statements). Major infrastructure works are being funded from reserves as previously modelled and reported. After taking into account dividend payment, capital expenditure, transfers and depreciation; the water fund had a negative cash flow from its externally restricted water supply reserve of $937K. (see Note 6c to the Financial Statements), bringing this reserve to $25.007M..

The current Delivery Program and Operational Plan (DPOP) forecasts an increase in the water availability charge of $2 per 20mm connection and a 5c/kL increase in water usage charges for the 2019/20 financial year. Updated modelling with the 2017 results has demonstrated that a zero increase to availability and usage charges can be applied for the 2018/19 financial year, with a sustainable dividend payment. This includes a proposal to increase the annual concession for eligible pensioner accounts by $10 for water availability charges as an additional Council component of the rebate provisions of the Local Government Act. A separate report has been provided in this regard.

Sewer Fund

As has been reported for many years, the sewer fund is heavily influenced by ongoing significant capital requirements and has a number of current and future loan borrowings factored into the 20 year model. The sewer fund pricing path has included “above CPI” increases over a number of previous years to avoid price shock and to fund both significant backlog programs (Lake Tabourie, Conjola Regional Scheme, Currarong and Kangaroo Valley) in addition to the current upgrade works of the Nowra and Bomaderry systems (REMS1B). The sewer fund had a net operating result for the 2017 financial year of $19.1M (see Note 21 to the Financial Statements). After taking into account dividend payment, capital expenditure, depreciation and the REMS1B grant reconciliation, the sewer fund had a net positive cash flow of $7.49M into reserve, bringing the sewer restricted reserve to $34.1M (Note 6c of Financial Statements). The current 2018 budget includes a $50M loan as previously reported to Council. This loan plus reserves will fund the $113M capital program for this year.

The REMS 1B contract will continue to have significant impacts on the sewer program budget for the next 2 years.

The current DPOP forecasted an increase in the residential wastewater availability charge of $25 per 20mm connection for the 2018/19 financial year and by a further $25 per 20mm connection the following year. This forecast has been adjusted following updated modelling with the 2017 results and the increase to the wastewater availability charge per 20mm connection can be limited to $18 in 2018/19 and $20 in 2019/20.

As is the case for the water availability charge, the provision of an additional Council component of $10 for sewer availability for the annual concession on eligible pensioner accounts has been proposed to commence in 2018/19.

Summary

The effect of the above proposal on the Shoalhaven Water bill for a residential connection in respect of water supply and sewerage services is shown on the following table.

Table: Proposed effect on Shoalhaven Water bill (water and sewerage)

		2017/18	2018/19	% Increase	$ Increase
Water Availability Charge		$82	$82	0.0%	$0
Water Usage Charges	Use per annum in kL	$1.70	$1.70	0.0%	Per annum	Per week	Per ¼ bill
	50	$167	$167	0.0%	0.0%	$0	$0
	100	$252	$252	0.0%	0.0%	$0	$0
	150	$337	$337	0.0%	0.0%	$0	$0
	200	$422	$422	0.0%	0.0%	$0	$0
	450	$847	$847	0.0%	0.0%	$0	$0

Add Sewerage		$830	$848	2.1%	$18
	Use per annum in kL				Per annum	Per week	Per ¼ bill
	50	$997	$1015	1.8%	$18.00	$0.35	$4.50
	100	$1082	$1100	1.6%	$18.00	$0.35	$4.50
	150	$1167	$1185	1.5%	$18.00	$0.35	$4.50
	200	$1252	$1270	1.4%	$18.00	$0.35	$4.50
	450	$1677	$1695	1.0%	$18.00	$0.35	$4.50

The average residential water consumption for residential properties in the city is 150kL as shaded above.

It should be noted however that the nationally accepted benchmark for pricing is based on 200kL of residential water use. This provides a “normalised” benchmark for all utilities to compare pricing without correcting for differences in volumes of water supplied. The latest available National Performance Benchmark Urban Water Utilities (2015-16) for the median of an annual bill based on 200kL ($) for water and sewer across the same group as Shoalhaven is $1378 per annum and for all Australian Water Utilities is $1332. This compares to the Shoalhaven proposed median bill of $1270 in 2018-19.

Community Engagement

Any draft proposal adopted by Council will form part of the community engagement process for the DPOP.

Financial Implications

The draft proposal articulated in this report seeks to minimise price increases to customers while providing essential infrastructure in a sustainable manner. A number of variables and uncertainties are contained within the financial models for water and sewer, including the timing of new infrastructure for development, interest rates, climatic factors and major contract programming. The draft pricing proposal is based on information current at this date. This will be further refined as factors change.

Strategy and Assets Committee – Tuesday 20 March 2018

Page 132

SA18.70 Extension of Town Water Supply along Tannery Road, Cambewarra

HPERM Ref: D18/71530

Group: Shoalhaven Water Group

Section: Water Asset Planning & Development

Attachments: 1. Tannery Rd Raw Water Schematic ⇩

Purpose / Summary

Council’s direction is sought to extend the town water supply in Cambewarra to serve three properties that are currently connected to an old raw water supply system that Council does not operate or maintain.

Recommendation

That Council:

a. Approve the extension of the town water supply along Tannery Road to the eastern boundary of 261 Tannery Road, Cambewarra.

b. Approve the funding of the water main extension from the Water Capital Fund.

c. Following completion of the water main extension, discontinue the raw water supply to 245, 246 and 261 Tannery Road, Cambewarra.

d. Take appropriate steps to minimise the risk to Council in respect to the raw water supply on 230B Tannery Road and Lot 85 DP 751273.

Options

1. Adopt the recommendation.

Implications: Staff consider this approach as the means to best mitigate risks Council may carry.

2. Council could choose not to extend the existing town water supply and formalise ownership transfer to the property owners as a private supply.

Implications: This is not supported by staff as it does not fully address the risk to Council. In addition it could involve a lengthy legal and regulatory approvals process.

3. Council could take steps to retain ownership of the infrastructure and continue the raw water supply to the current users.

Implications: This is not supported by staff as it does not fully address the risk to Council. In addition it could involve a lengthy legal and regulatory approvals process.

Background

It has recently come to Council’s attention that four properties are utilising an old raw water supply in Tannery Rd, Cambewarra. This small system was a part of the original Cambewarra water supply that comprised Cambewarra Dam (still owned and maintained by Council), a head weir and pipes (see Attachment 1 for schematic). The four subject properties are:

Lot 1 DP 562430, No. 246 Tannery Rd

Lot 2 DP 562430, No. 230B Tannery Rd

Lot 3 DP 609826, No. 261 Tannery Rd

Lot 4 DP 609826, No. 245 Tannery Rd (also has town water connection)

The head weir is located on Lot 85 DP 751273 (same owner as 230B Tannery Road). This head weir and associated pipes were disused by Council in the late 1970’s and no record can be found as to a formal mechanism utilised to extinguish ownership of the scheme or transfer the scheme to private parties to manage. It should be noted that none of the four properties have paid availability nor usage for the raw water since the time Council disused the system (as advised by property owners). Council’s records of water billing support this though the exact date of cessation of raw water billing is unclear.

In May 2017 Council received correspondence from the owners of 246 Tannery Road seeking Council’s advice on the status of ownership and responsibility of the existing raw water supply as the owner of 230B Tannery Road has threatened to cut the supply to the property when they sell it (which they intend to do in the near future).

The owners of 246 Tannery Road are claiming that they purchased the property with a water supply and they wish to sell it with a water supply.

Some other points of note include:

· Neither the pipeline nor the head weir are covered by easements.

· None of subject infrastructure is included in Council’s asset register, and as such no maintenance or operational monitoring (eg water quality) has been carried out by Council since the late 1970’s.

· Council does not hold a licence to extract water at the head weir.

· The land owners appear to agree that it is a “private system” as they have carried out maintenance and repairs in the past, at their own cost.

· None of the four properties are connected to Council’s sewerage system (and none pay the sewerage availability charge).

· The quantities of raw water used by the properties is unknown and indeed it is unknown what the water is being used for.

Staff have investigated this situation in terms of Councils potential responsibility for the infrastructure and risk of liability given it does not maintain or operate the system (and does not charge for same).

Staff have concluded from the investigation that Council may carry some risk in this situation and it should take measures to mitigate that risk.

Given the four properties in question were connected to a once owned water supply system (albeit a raw water supply) of Council it is considered prudent to extend the potable water supply and offer connection of those properties to that reliable supply. Council may recall a similar scenario at Strongs Road whereby Council funded an extension of its potable water supply to the users of an aged raw water system. It is recommended to take a similar approach here. The following steps are proposed:

· Finalise a design for an extension of the potable water supply. This would include a 350 metre extension of 100mm diameter pipeline along Tannery Road to the eastern boundary of 261 Tannery Road.

· The property owners involved have been consulted and all appear to be supportive of the proposal (they are aware that it is subject to Council resolution). Should the proposal be endorsed by Council then further consultation will be undertaken regarding the extension and removal of the raw water supply to 245, 246 and 261 Tannery Road.

· Council construct the water main extension (funded from Water Capital Fund).

· Advise land owners of the completion of the construction and that they can make application for connection to the potable supply.

Community Engagement

The local stakeholders have been kept informed of the progress of the project through letters and on site consultation. The owners of 245, 246 and 261 Tannery Road have been advised of the disconnection of their properties from the raw water supply.

Further investigation and consultation will be required in relation to the raw water connection on 230B Tannery Road.

Policy Implications

As discussed above the situation was brought to Council’s attention through correspondence in May 2017 and extensive research has been undertaken to ascertain the status of the subject raw water supply and assess any risks Council may realise having managed the system until the late 1970’s. While Council has no policy to reference in this exact scenario it may consider the Strongs Road water supply as a precedent for decision making.

The Strongs Road water supply project was completed in 2015. It included an extension of the town potable water to serve approximately 23 properties along Strongs Road that were previously connected to a Council owned raw water system. This project was funded by Council through its Water Fund.

While there is some conjecture as to the ownership of the raw water system at Tannery Road, Cambewarra, staff feel the risk to Council is such that it would be prudent to reduce that risk by provision of a town water supply to those properties, similar to Strongs Road.

Financial Implications

Shoalhaven Water has prepared an estimate for an extension of its potable water supply to serve 246 and 261. It should be noted that 245 Tannery already has connection to the potable supply. The estimate , based on the preliminary design for a 350m extension of a 100mm diameter pipeline, is $125,000 and would be funded through the 2017/18 Water Capital Fund from savings experienced with the Minor Mains Program. The estimate includes, survey, design, review of environmental factors, construction and project management. The works is anticpated to be undertaken by Shoalhaven Water’s Operations Section.

The connection of new services to the new water main will be paid for in full by the property owners. The cost for a 20mm metered service is $847 (2017/18).

Once the properties are connected they would also be levied the water availability charge of $82.00 for 2017/18.