Agenda of Strategy and Assets Committee

Minutes of the Strategy and Assets Committee

Meeting Date: Tuesday, 21 August 2018

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

Time: 5.00pm

The following members were present:

Clr John Wells - Chairperson

Clr Joanna Gash

Clr Amanda Findley

Clr Patricia White

Clr Kaye Gartner

Clr Nina Cheyne

Clr Annette Alldrick

Clr John Levett

Clr Greg Watson

Clr Mark Kitchener

Clr Bob Proudfoot

Russ Pigg - General Manager

Apologies / Leave of Absence

Apologies were received for Clr Guile and Clr Pakes.

Confirmation of the Minutes

RESOLVED (Clr Alldrick / Clr Gash) MIN18.615

That the Minutes of the Strategy and Assets Committee held on Tuesday 24 July 2018 be confirmed.

CARRIED

Declarations of Interest

Clr White – CSA18.16 Tenders – Holiday Haven Tourist Parks - Management & Operation – Bendalong Point Holiday Park – less than significant pecuniary interest declaration – will leave the room and will not take part in discussion or vote – is a personal friend of one of the tendering applicants.

Clr Wells – CSA18.16 Tenders – Holiday Haven Tourist Parks - Management & Operation – Bendalong Point Holiday Park – less than significant non pecuniary interest declaration – will remain in the room and will take part in discussion or vote – one of the tendering parties is known to him as he oversaw their management of a Tourist Park from 2011 to 2013.

Mayoral Minutes

MMS18.4 Mayoral Minute - Acknowledgements for the Kingiman and Bomaderry Fires

HPERM Ref: D18/286339

Recommendation

That in response to the Bushfires in the Shoalhaven this month and the incredible efforts of many in our community, that Council

1. Acknowledges the ultimate sacrifice given by Allan “Tully” Tull in fighting the Kingiman Fires in Milton, and send the deepest condolences to Tully’s family and to all of those who called him a friend and colleague.

2. Note that a Mayoral Appeal has been opened to collect financial donations for Tully, in response to calls from Jill Blackler and many others within the Milton Ulladulla Community

3. Thanks and acknowledges all the work that has been undertaken by volunteers and paid staff alike across the district during this very trying time.

4. Arrange for a suitable plaque to be raised to commemorate the lives of Fixed Wing Pilot David Black and Helicopter Pilot Allan Tull and with the aid of the community find a location that is fitting for it.

5. Hold a community picnic day of “Commemoration, Celebration and Commiseration” to be held at Milton Showgrounds at a future date and ensure that no fees are charged to community organisations for the event.

RECOMMENDATION (Clr Findley / Clr Watson)

That in response to the Bushfires in the Shoalhaven this month and the incredible efforts of many in our community, that Council

2. Contribute a donation of $2,500 from the unallocated donations budget, and note that a Mayoral Appeal has been opened to collect financial donations for Tully, in response to calls from Jill Blackler and many others within the Milton Ulladulla Community

3. Thanks and acknowledges all the work that has been undertaken by volunteers and paid staff alike across the district during this very trying time.

6. Forward an acknowledgement to Clr Pakes thanking him for his contribution during the emergency in the absence of the Mayor and Deputy Mayor.

CARRIED

Procedural Motion - Bring Item Forward

RESOLVED (Clr Wells / Clr Gash) MIN18.616

That the matter of item SA18.197 City of Shoalhaven Eisteddfod Inc. Nowra Request for Additional Funding be brought forward for consideration.

CARRIED

SA18.197 City of Shoalhaven Eisteddfod Inc. Nowra Request for Additional Funding

HPERM Ref: D18/260411

Recommendation

That Council consider the request from the City of Shoalhaven Eisteddfod Inc. Nowra for an additional donation to contribute to costs arising from the use of the Shoalhaven Entertainment Centre.

RECOMMENDATION (Clr Wells / Clr Gash)

That:

1. Council donate the sum of $10,000 per annum from the Donations budget to the City of Shoalhaven Eisteddfod Inc.

2. The donation be indexed annually in accordance with the Consumer Price Index.

CARRIED

Notices of Motion / Questions on Notice

SA18.190 Notice of Motion - Donation - Berry Small Farm Field Days

HPERM Ref: D18/268440

Recommendation

That Council support Berry Rotary’s Small Farm Field Day event by voting $2000 from the unallocated donations vote.

RECOMMENDATION (Clr Wells / Clr Gash)

That Council support Berry Rotary’s Small Farm Field Day event by voting $2000 from the unallocated donations vote.

CARRIED

SA18.191 Notice of Motion - Traffic/Parking Control Plan - Owen/Sydney/Tomerong Streets Huskisson

HPERM Ref: D18/278044

Recommendation

That further to the Council Resolution of 24 April 2018 (MIN18.290) for the Council to prioritise and take action in regard to "a comprehensive current traffic/parking control plan for the intersection of Owen/Sydney/Tomerong Streets (Picture Theatre Corner)" that funds be now sourced so that a design and costing study can be completed to take the project to the stage of being "shovel ready".

RECOMMENDATION (Clr Findley / Clr Gash)

CARRIED

Report of the Homelessness Taskforce Shoalhaven - 30 July 2018

Items marked with an * were resolved ‘en bloc’.

HT18.10 Everybody's Home Campaign - Support Request

HPERM Ref: D18/205917

Recommendation

That Council offer its support to the Everybody’s Home campaign, and write to Lake Macquarie City Council to affirm this.

RESOLVED* (Clr Findley / Clr Alldrick) MIN18.617

That Council offer its support to the Everybody’s Home campaign, and write to Lake Macquarie City Council to affirm this.

CARRIED

HT18.12 Proposed Memorandum of Understanding - Affordable Housing Opportunities

HPERM Ref: D18/210107

Recommendation

That Council:

1. Proceed to enter into a Memorandum of Understanding with Amoveo and Southern Cross Community Housing to pursue a partnership to investigate and deliver affordable housing and emergency accommodation opportunities in Shoalhaven

2. Receive update reports, through the Homelessness Taskforce Shoalhaven, as needed or required.

RESOLVED* (Clr Findley / Clr Alldrick) MIN18.618

That Council:

2. Receive update reports, through the Homelessness Taskforce Shoalhaven, as needed or required.

CARRIED

Report of the Youth Advisory Committee - 1 August 2018

Items marked with an * were resolved ‘en bloc’.

YA18.17 Youth Advisory Committee Planning Day 2018 - 2019 - Proposed Budget Allocations

HPERM Ref: D18/226673

Recommendation

That the Youth Advisory Committee approve the disbursement of funds to support the following initiatives from the existing 2018/19 Youth Advisory Committee budget:

1. International Youth Day Awards - $3,000

2. South Coast Youth Leaderships Forum Activity - $1,000

3. Ulladulla Youth Centre School Holiday Activities - $1,000

4. Nowra Youth Centre Cooking Program - $1,000

RESOLVED* (Clr White / Clr Gartner) MIN18.619

That Council approve the disbursement of funds to support the following initiatives from the existing 2018/19 Youth Advisory Committee budget:

1. International Youth Day Awards - $3,000

2. South Coast Youth Leaderships Forum Activity - $1,000

3. Ulladulla Youth Centre School Holiday Activities - $1,000

4. Nowra Youth Centre Cooking Program - $1,000

CARRIED

YA18.19 Terms of Reference Review and Update

HPERM Ref: D18/253523

Recommendation

That the Youth Advisory Committee Terms of Reference be amended as follows:

3.3 Membership

a) A maximum of 26 youth members comprising of:

i) 18 students from Year 9 and above from local high schools, be appointed as members. A maximum of 5 students may be elected from each local high school, however only a maximum of 2 students from each school may attend and vote at any meeting;

ii) A maximum of 8 young people aged between 15 and 21 years from the community and/or Youth Services be appointed as members; and

b) One representative for each of the Federal Member for Gilmore and the State Members for South Coast and Kiama; and

c) Councillors of Shoalhaven City Council.

Council and the Youth Advisory Committee welcomes membership of young people from diverse and varied backgrounds. Other interested people may attend as support and observers but are not able to vote on motions. The Youth Advisory Committee may also call on other people to attend the meetings as required.

When a member turns 21 years of age, their position will be declared vacant.

RESOLVED* (Clr White / Clr Gartner) MIN18.620

That the Youth Advisory Committee Terms of Reference be amended as follows:

3.3 Membership

a) A maximum of 26 youth members comprising of:

ii) A maximum of 8 young people aged between 15 and 21 years from the community and/or Youth Services be appointed as members; and

b) One representative for each of the Federal Member for Gilmore and the State Members for South Coast and Kiama; and

c) Councillors of Shoalhaven City Council.

Council and the Youth Advisory Committee welcomes membership of young people from diverse and varied backgrounds. Other interested people may attend as support and observers but are not able to vote on motions. The Youth Advisory Committee may also call on other people to attend the meetings as required.

When a member turns 21 years of age, their position will be declared vacant.

CARRIED

YA18.21 Additional item - Traffic options and pedestrian safety - John Purcell Way and Hillcrest Avenue

Recommendation

That:

1. Council request staff investigate traffic options and pedestrian safety for the intersection of Hillcrest Avenue and John Purcell Way due to the large volume of traffic during school times and at sporting events;

2. A member of Council’s traffic unit attend the next meeting of the Youth Advisory Committee.

RESOLVED* (Clr White / Clr Gartner) MIN18.621

That:

2. A member of Council’s traffic unit attend the next meeting of the Youth Advisory Committee.

CARRIED

Deputations and Presentations

SA18.203 - Boat Harbour Beach, Bendalong – Coastal Hazard Report

Ms Lexie Meyer and Mr Kevin Miller (Red Head Villages Association) spoke against the recommendation.

Reports

Procedural Motion - Bring Item Forward

RESOLVED (Clr Wells / Clr White) MIN18.622

That the matter of item SA18.203 Boat Harbour Beach, Bendalong – Coastal Hazard Report be brought forward for consideration.

CARRIED

SA18.203 Boat Harbour Beach, Bendalong - Coastal Hazard Report

HPERM Ref: D18/237557

Recommendation (Item to be determined under delegated authority)

That Council adopt the Bendalong Coastal Hazard Mapping Report 2017 and Bendalong Beach Erosion Control Technical Advice Report 2018 and their recommendations, for managing beach erosion at Boat Harbour Beach at Bendalong.

RESOLVED (Clr Findley / Clr Cheyne) MIN18.623

That

1. Council defer considerations for managing beach erosion at Boat Harbour Beach at Bendalong until a Councillor Briefing has been held on this topic and the Bendalong Master Plan.

2. The Briefing include the engineers, community representatives and relevant government departments.

CARRIED

SA18.194 Country Mayors Association Meeting - 3 August 2018

HPERM Ref: D18/270085

Recommendation (Item to be determined under delegated authority)

That Council receive the report of the Country Mayors Association held on 3^rd August for information.

RESOLVED (Clr Findley / Clr Cheyne) MIN18.624

That Council receive the report of the Country Mayors Association held on 3^rd August for information.

CARRIED

SA18.195 Shoalhaven Community and Recreation Precinct - Addition of Croquet Courts to Artie Smith Detailed Design

HPERM Ref: D18/229741

Recommendation (Item to be determined under delegated authority)

That Council:

1. Note the investigations undertaken in consultation with the Athletics Club in attempting to identify an alternate site for a new facility.

2. Include provision for croquet facilities as part of the detailed design of the Artie Smith Oval site.

3. Note the engagement of Acclimate to liaise with peak sporting and grants bodies to progress the Artie Smith project.

RESOLVED (Clr Watson / Clr Cheyne) MIN18.625

That Council:

1. Note the investigations undertaken in consultation with the Athletics Club in attempting to identify an alternate site for a new facility.

2. Include provision for croquet facilities as part of the detailed design of the Artie Smith Oval site.

3. Note the engagement of Acclimate to liaise with peak sporting and grants bodies to progress the Artie Smith project.

CARRIED

SA18.196 Waiving & Discounting of Fees for Open Space & Community Facilities 2017/2018

HPERM Ref: D18/237308

Recommendation (Item to be determined under delegated authority)

That Council note that a total of $39,922.15 of fees were waived or discounted during the period of 1 July 2017 to 30 June 2018 for the use of Council’s open space and community facilities.

RESOLVED (Clr Watson / Clr Gartner) MIN18.626

That Council note that a total of $39,922.15 of fees were waived or discounted during the period of 1 July 2017 to 30 June 2018 for the use of Council’s open space and community facilities.

CARRIED

SA18.197 City of Shoalhaven Eisteddfod Inc. Nowra Request for Additional Funding

HPERM Ref: D18/260411

Item dealt with earlier in the meeting.

SA18.198 Women in Local Government Leadership Summit

HPERM Ref: D18/263082

Recommendation (Item to be determined under delegated authority)

That Council

1. Notes the details of the 10^th Women in Local Government Leadership Summit scheduled for 11-14 September 2018 in Sydney.

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

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

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

RESOLVED (Clr Cheyne / Clr Gartner) MIN18.627

That Council

1. Notes the details of the 10^th Women in Local Government Leadership Summit scheduled for 11-14 September 2018 in Sydney.

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

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

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

CARRIED

SA18.199 2018 MAV Sustainable Communities National Summit

HPERM Ref: D18/271248

Recommendation (Item to be determined under delegated authority)

That Council

1. Notes the details of the 2018 MAV Sustainable Communities National Summit scheduled for 18 & 19 September 2018 in Melbourne.

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

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

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

RESOLVED (Clr Cheyne / Clr Findley) MIN18.628

That Council

1. Notes the details of the 2018 MAV Sustainable Communities National Summit scheduled for 18 & 19 September 2018 in Melbourne.

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

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

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

CARRIED

SA18.200 Parkcare Action Plans - Badgee Creek Parkcare Group / Bawley Point Kioloa Community Association Graffiti Parkcare Group

HPERM Ref: D18/250389

Recommendation (Item to be determined under delegated authority)

That Council endorse updated ‘Parkcare’ Plans for Badgee Creek and Bawley Point Kioloa and continue to allocate ongoing annual funding of $400 (CPI adjusted and exc GST) per plan to cover safety PPE, miscellaneous materials, waste disposal and purchase of minor tools.

RESOLVED (Clr Proudfoot / Clr White) MIN18.629

CARRIED

SA18.201 Unit 2 (Nowra Steakhouse), 10 Pleasant Way Nowra - Assignment of Lease

HPERM Ref: D18/270604

Recommendation

That Council:

1. Authorise the execution of the Deed of Consent and Assignment of Lease for Unit 2, 10 Pleasant Way Nowra from Eating Habits Pty Limited to Somporn Daichuenchit; 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 City of Shoalhaven to all documentation required to be sealed.

RECOMMENDATION (Clr Gartner / Clr White)

That Council:

1. Authorise the execution of the Deed of Consent and Assignment of Lease for Unit 2, 10 Pleasant Way Nowra from Eating Habits Pty Limited to Somporn Daichuenchit; and

CARRIED

SA18.202 Tenders - Management & Operation of the Shoalhaven Indoor Sports Centre & Bomaderry Basketball Stadium

HPERM Ref: D18/274508

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) MIN18.630

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

CARRIED

SA18.203 Boat Harbour Beach, Bendalong - Coastal Hazard Report

HPERM Ref: D18/237557

Item dealt with earlier in the meeting see MIN18.623

SA18.204 Proposed Bollards Installation - Foreshore Reserve, The Park Drive, Sanctuary Point - Alleviate Public Risk and Environmental Damage Due to Vehicle Access

HPERM Ref: D18/250225

Recommendation (Item to be determined under delegated authority)

That Council:

1. Endorse the installation of bollards at Lot 566 DP 24760 The Park Drive foreshore reserve, Sanctuary Point as per Attachment 1 to the report; and

2. Fund the works from the existing 2018/19 Foreshore Reserve Policy Operational Budget.

RESOLVED (Clr Proudfoot / Clr Watson) MIN18.631

That Council:

1. Endorse the installation of bollards and/or access gates at the rear of Council reserve for access points as shown on the map on page 87 of the Agenda, attachment 2, excluding Shoalhaven Water land.

2. Fund the works from the existing 2018/19 Foreshore Reserve Policy Operational Budget.

For: Clr Wells, Clr Gash, Clr White, Clr Alldrick, Clr Watson, Clr Kitchener, Clr Proudfoot and Russ Pigg

Against: Clr Gartner, Clr Cheyne and Clr Levett

CARRIED

Note: Clr Findley left the meeting at 6.35pm

Note: Clr Findley was present during the discussion of this item but not present during the vote.

Note: Clr Findley returned to the meeting at 6.37pm

SA18.205 Development Application Fees - Refund Request - GJ Gardner Homes - Variety Freedom House - Patonga Street, Nowra - DA18/1808

HPERM Ref: D18/239219

Recommendation

That Council:

1. Reimburse GJ Gardner Homes $4836.00, being the development application and associated fees in relation to DA18/1808 for construction of a house at Lot 800 DP1240170 Patonga Street, Nowra.

2. Fund the reimbursement from the Unallocated Donations budget.

RECOMMENDATION (Clr White / Clr Watson)

That Council:

1. Reimburse GJ Gardner Homes $4836.00, being the development application and associated fees in relation to DA18/1808 for construction of a house at Lot 800 DP1240170 Patonga Street, Nowra, and that Council be appropriately acknowledged for this contribution to the Variety Freedom House project.

2. Fund the reimbursement from the Unallocated Donations budget.

CARRIED

SA18.206 Danjera Dam Camping Redevelopment

HPERM Ref: D18/267965

Recommendation (Item to be determined under delegated authority)

That Council:

1. Place the attached Future Directions Report on public exhibition for 28 days and send a copy to all stakeholders who have registered their interest in the future of the camping area and seek public comment on the proposed way forward

2. Bring a further report to Council with all responses received through this process.

RESOLVED (Clr Gartner / Clr Watson) MIN18.632

That Council:

1. Place the Future Directions Report on public exhibition for 28 days and send a copy to NSW Police and all stakeholders who have registered their interest in the future of the camping area and seek public comment on the proposed way forward.

2. Bring a further report to Council with all responses received through this process.

CARRIED

SA18.207 Drought Impact on Shoalhaven Water Supplies

HPERM Ref: D18/272328

Recommendation (Item to be determined under delegated authority)

That Council receive the report for information.

RESOLVED (Clr Gartner / Clr Proudfoot) MIN18.633

That Council receive the report for information.

CARRIED

Introduction of Items as Matters of Urgency

RESOLVED (Clr Watson / Clr White) MIN18.634

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

1. MMS18.4 Mayoral Minute - Acknowledgements for the Kingiman and Bomaderry Fires

2. SA18.208 2018 Local Government NSW Annual Conference - Motions

3. SA18.209 Tenders - Holiday Haven Tourist Parks - Management & Operation - Bendalong Point Holiday Park

4. CSA18.16 Tenders – Holiday Haven Tourist Parks - Management & Operation - Bendalong Point Holiday Park

CARRIED

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

Addendum Reports

MMS18.4 Mayoral Minute - Acknowledgements for the Kingiman and Bomaderry Fires

HPERM Ref: D18/286339

Item dealt with earlier in the meeting see MIN18.616

SA18.208 2018 Local Government NSW Annual Conference - Motions

HPERM Ref: D18/269842

Recommendation (Item to be determined under delegated authority)

That Council consider the Motions, as printed in the report and, if accepted, the Motions be submitted to Local Government NSW for inclusion in the Conference Agenda.

RESOLVED (Clr Watson / Clr Gash) MIN18.635

That Council submit the Motions, as printed in the report with the exception of Motion 3, to Local Government NSW for inclusion in the Conference Agenda.

For: Clr Wells, Clr Gash, Clr White, Clr Watson, Clr Kitchener and Russ Pigg

Against: Clr Findley, Clr Gartner, Clr Cheyne, Clr Alldrick, Clr Levett and Clr Proudfoot

CARRIED ON THE CASTING VOTE OF THE CHAIR

SA18.209 Tenders - Holiday Haven Tourist Parks - Management & Operation - Bendalong Point Holiday Park

HPERM Ref: D18/267995

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 Gash / Clr Findley) MIN18.636

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

CARRIED

Confidential Reports

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

No members of the public made representations.

RESOLVED (Clr Gash / Clr Gartner) MIN18.637

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.

CSA18.16 Tenders – Holiday Haven Tourist Parks - Management & Operation - Bendalong Point Holiday Park

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)

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.

CSA18.15 Tender - Management & Operation of the Shoalhaven Indoor Sports Centre & Bomaderry Basketball Stadium

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

CARRIED

The meeting moved into confidential the time being 7.05pm.

The meeting moved into open session, the time being 7.09pm.

Report from confidential session

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

CSA18.16 Tenders – Holiday Haven Tourist Parks - Management & Operation - Bendalong Point Holiday Park

HPERM Ref: D18/268067

Clr White – less than significant pecuniary interest declaration – is a personal friend of one of the tendering applicants – left the room and did not take part in discussion or vote.

Clr Wells – less than significant non pecuniary interest declaration – one of the tendering parties is known to him as he oversaw their management of a Tourist Park from 2011 to 2013 – remained in the room and took part in discussion and voted.

RESOLVED MIN18.638C

That

1. Council endorses the recommendation of the Tender Assessment Team to accept the tender from Joshua & Claire Nicholls for the Management & Operation of Holiday Haven Bendalong.

2. The contract documents and any other associated documents be executed on behalf of the Council in accordance with cl165 of the Local Government Regulation by the General Manager or his delegated nominee.

CARRIED

There being no further business, the meeting concluded, the time being 7.11pm.

Clr Wells

CHAIRPERSON

Strategy and Assets Committee – Tuesday 18 September 2018

Page 1

SA18.216 Floodlighting Charges Review

HPERM Ref: D18/295712

Group: Finance Corporate & Community Services Group

Section: Recreation Community & Culture

Attachments: 1. Payments Recent Past - All Clubs (councillors information folder)

2. Cross Council Comparison - Floodlight Administration ⇩

3. Options 1 - 4 - All clubs (councillors information folder)

4. Powerpoint Presentation (councillors information folder)

Purpose / Summary

To report on the Floodlighting Charges Review following the Councillor Briefing, and to seek determination of Floodlighting Charges and direction as to invoicing procedures.

Recommendation (Item to be determined under delegated authority)

That:

1. The Floodlighting fee for sportsgrounds be amended to $0.47/kwhr for the 2018/19 financial year.

2. The Floodlighting fee is to be Consumer Price Indexed (CPI) annually thereafter, in line with Council’s other Fees & Charges, and adjusted to accommodate any future increases to electricity charges beyond CPI.

3. All fees for sportsground floodlighting for local clubs, be waived and no charges to apply, for the period 1 July 2017 to 30 March 2019. This includes both Council and Management Committee public facilities.

4. Local clubs be reimbursed for any invoices already paid for sportsground floodlighting for the period 1 July 2017 to 30 March 2019. Local clubs at Management Committee facilities to be refunded from the Sportsgrounds operational budget.

5. 2018/19 Floodlight fees for local clubs be charged quarterly from 1 April 2019.

6. Council staff to administer all invoicing, and payments for floodlighting to be made directly from clubs to Management Committees where applicable.

7. Staff to ensure that all electricity accounts are held in the name of Shoalhaven City Council or Management Committee. Local clubs at all public facilities are to be invoiced according to this Resolution.

8. Staff install floodlight controllers on all Council sportsgrounds by 1 April 2019, subject to funding availability.

9. Council allocate the balance of $42,500 to the Floodlight Controllers budget, required to facilitate the installation of illuminators at currently unfunded sportsgrounds, thus enabling all controllers to be in place and operational by 1 April 2019.

10. Amendments to the Floodlighting fee (Fees and Charges Policy) be placed on Public Exhibition for a period of 28 days, in accordance with Section 705 of the Local Government Act. If no adverse comments are received, the amended Policy be deemed adopted.

11. Staff amend the Sportsground Management Policy to reflect this Resolution, and the Policy be placed on Public Exhibition for a period of 28 days. If no adverse comments are received, they amended Policy be deemed adopted.

Options

1. Recommend as written above

Implications:

· Fees and Charges and Sportsground Management Policies will be amended.

· Clubs will be refunded any floodlighting fees already paid for 2017/18.

· Management Committees will be reimbursed for any loss in income resulting from waivers and refunds.

· All clubs will be charged adopted fees from 1 April 2019, as determined by usage data from floodlight controllers.

· Staff will administer invoicing.

· All electricity accounts will be held by Council.

· Staff will actively work towards installation of floodlight controllers by 1 April 2019.

2. Council not accept this Recommendation, and provide alternate direction:

Implications:

a. An alternate Floodlighting fee for sportsgrounds for the 2018/19 financial year be determined.

b. The Floodlighting fee not be:

i. Consumer Price Indexed (CPI) annually thereafter, in line with Council’s other Fees & Charges

ii. Adjusted to accommodate any future increases to electricity charges beyond CPI.

c. All fees for sportsground floodlighting, for local clubs, not be waived for the period 1 July 2017 to 30 March 2019. This includes both Council and Management Committee public facilities.

i. Determine alternate period

ii. Do not resolve to waive any fees

d. Nominate alternate budget to fund refunds to local clubs.

e. If waiver approved, Management Committees not be reimbursed for floodlighting income, or nominate alternate budget.

f. Alter frequency of invoicing for Floodlight fees for local clubs.

g. Alter arrangements for staff to administer invoicing, and payments for floodlighting with respect to Management Committees facilities.

h. Staff not to proceed to install floodlight controllers on all Council sportsgrounds by 1 April 2019, subject to funding availability.

i. Council not allocate to the Floodlight Controllers budget for installation of illuminators at currently unfunded sportsgrounds, to have all controllers in place and operational by 1 April 2019:

i. Determine alternate amount

ii. Do not allocate funding

Background

This Report is in response to Council Minute MIN 18.271:

1. “Withdraw the invoices submitted to Shoalhaven sporting clubs with respect to floodlighting.

2. Review any policies associated with the floodlighting charges.

3. Hold an urgent Councillor briefing in relation to the matter of floodlighting charges.”

As a result, all invoices were immediately withdrawn, staff conducted a full review, and a Councillor Briefing was held 23 August 2018 (presentation slideshow attached).

The Review addressed playing fields: AFL, Rugby League, Soccer, Cricket, Touch Football, Rugby Union and Netball.

Leased Facilities

Council’s Fees and Charges for public facilities do not apply to leased facilities. They have been included in this Review only to note that the lease conditions for these local clubs generally require them to pay for all maintenance and electricity usage for floodlighting.

Tennis Courts

Tennis Courts were not included, as the floodlighting charge is a different fee structure, being included in the ‘night hire’ fee. Once a /kwhr fee has been adopted, tennis court ‘night hire’ fees can be reviewed, and the /kwhr fee applied to calculate the appropriate corresponding increase for night hire. This will align the charge with sportsground floodlighting charges.

New rates for Tennis Courts can be reported in the 2019/20 DPOP Fees & Charges Report.

Process of Review

As part of this review staff have:

· Collated historical data regarding floodlight charging

· Contacted other Councils to investigate their charging schedules

· Investigated a number of floodlight metering devices (controllers), and their capabilities – the outcome of this indicates that the “Illuminator” product has been identified as the most user-friendly, cost-effective and market-tested product.

Review of the History

Council has adopted fee for floodlight usage since 1995. This fee has been indexed annually and the consequent 2017/18 fee was $0.95/kwhr.

The Fees are outlined in Council’s:

· Fees & Charges Policy, and

· Sportsground Management Policy, most recently endorsed by Council 4/04/2017 (replaced but did not alter the direction of the previous Policy, Sportsgrounds – User Group Responsibilities, adopted 7/05/1985).

Both policies include the clause:

3.2 “User groups shall pay full costs associated with the lighting of sportsgrounds for the duration of their allocated use.”

The fee was reviewed in 2002 to include:

· Electricity usage, and

· Maintenance costs of the floodlights and poles.

Advice to Clubs

Clubs have been advised annually on the Seasonal Allocation Form, that:

· Fees will be charged for use of floodlights. All fees are in accordance with Council's advertised Fees and Charges.

· Lighting fee will be charged for hours booked, any amendments must be supported by a detailed log of actual usage.

Inequity

It has been identified that only 45% of clubs at Council managed sportsgrounds (including Management Committee-run facilities) have been paying part or full costs of electricity and maintenance. Different rates and charges have been applied at different facilities, and 55% of clubs have not been paying anything.

Attachment 1 shows the different amounts that clubs have been paying in the recent past.

Invoicing

The administrative error was identified in 2017 and staff undertook to correct this, issuing invoices as per Council’s Policy, using hours of usage as recorded on Seasonal Allocation Forms, log books provided by the clubs, or floodlight controller data (2 facilities).

Attachment 3 shows the amounts that clubs were invoiced, under Option 1. (Wreck Bay Soccer was also invoiced, but as that club is no longer using the grounds, for planning purposes going forwards, they have not been included in the data.)

These invoices have all been withdrawn as per MIN 18.271. Ulladulla Netball has made payment and they have requested that Council hold the funds, pending outcome of the Review. This payment will need to be refunded if Council resolves to waive the 2017/18 fees.

Wastage

It has been identified that there is considerable wastage of electricity:

· If clubs do not pay they don’t realise/consider the costs,

· Clubs leave the floodlights on for long periods,

· Clubs do not conserve amenities & clubhouse power,

· Additional power costs to Council,

· Environmental costs.

Benchmarking

Attachment 2 details feedback from seven (7) nearby Councils. In summary:

· All but Kiama charge floodlighting fees,

· Only SCC charges full cost recovery,

· Only SCC and Kiama do not charge ground hire,

· All have varying billing periods,

· All others, excepting Kiama, recover additional costs from a field hire or club house fee,

· Shoalhaven Council do not currently charge field hire,

· SCC Management Committees charge for clubhouse electricity,

· All but Kiama use similar floodlight controllers.

Actual Costs at Council-managed Facilities:

Details	Cost 2017/18	$ / kwhr
Maintenance of lights	$84,247 *Actual charges paid* for maintenance, like changing light globes and switch board repairs.	$0.845/kwhr (converted total actual $ 84,247 divided by Estimated floodlight usage (Club actual winter bookings after 5:30pm OR from log books provided by some clubs 99,678 kwhr) = $0.845/kwhr
Estimated electricity usage 17/18 attributed to floodlights *multiplied by rate $0.185/kwh = $18,440*.	$18,440 This was considered by staff as conservative because lights are often on before 5:30pm and clubs often use fields without booking in.	$0.185/kwhr *Actual contract rate on bill.* NOTE: This does not include the additional $254 pa per site billing service charge not factored in.
Total	$102,687	$1.03 /kwhr
Additional electricity charges to sportsgrounds *Not factored in to flood light charges* attributed to air con, hot water, etc	$ 51,032 *Actual bill* ($69,472) minus *Estimated flood light usage costs* (18,440) = $51,032	$0.51/kwhr (converted total actual $ 51,032 divided by Estimated flood light usage (Club actual winter bookings after 5:30pm OR from log books provided by some clubs 99,678 kwhr) = 0.51/kwhr
Upgrade costs, such as, improving lights to fields that have inadequate levels or don’t meet AU standards, are not factored into this process

Cost and Equity Factors

The table below shows that under the 2017/18 fee, a club is likely to pay between $10 and $38 per hour per field for use of floodlights. At the most expensive field to train at, and assuming 10 players attend: this would mean each player contributes $8, each 2 hour training session.

Some clubs have identified that the costs are prohibitive. Other clubs have been paying these fees for years, as well as contributing to grounds upgrades.

Other users at public facilities:

· At Council’s halls, meeting rooms and showgrounds, users are required to pay an hourly hire fee that contributes to cost recovery for the maintenance of the infrastructure,

· At leased facilities full costs of electricity and maintenance are borne by the club.

In consideration of these factors, the following 4 Options were identified and considered at the Councillor Briefing and a compromise is proposed:

Option 1:	Current Fee Full cost recovery of electricity supply and maintenance (not including service fees and clubhouse usage)
Option 2:	Full subsidy of maintenance - electricity supply only
Option 3:	Partial cost recovery - electricity supply + 33% of estimated maintenance costs (not including service fees and clubhouse usage)
Option 4:	Full subsidy of electricity supply and maintenance – ie all costs met by Council

Indicative costs to clubs:

FIELD	SPORT	HOURLY COST to clubs – PER FIELD
NB. OPTION 4 = $0		OPTION 1 Electricity + Maintenance $0.95/kwhr (2017/18 CPI indexed)	OPTION 2 Electricity Only $0.24/kwhr (average cost from provider)	OPTION 3 Electricity + 33% Maintenance (estimate) $0.47/kwhr (Annual CPI indexing)
Crookhaven Park	Rugby League	$22.80	$4.44	$10.83
Vincentia Oval	AFL	$37.60	$7.32	$17.86
Lyrebird Park Main field	Rugby League	$10.69	$2.08	$ 5.07
Lyrebird Park Main field	Soccer	$22.80	$4.44	$10.83
Ison Park	Soccer	$22.80	$4.44	$10.83
Francis Ryan Oval	Rugby League	$22.80	$4.44	$10.83
Bomaderry Sporting Complex - Main field	Rugby League	$19.00	$3.70	$ 9.02

Attachment 3 demonstrates the differing annual invoice amounts that would result from the application of these fees to the 2017 usage. (as identified on Seasonal Allocation Forms).

Option 3 is the preferred option

Option 3 was discussed at the Councillor Briefing as a compromise and considered an appropriate way forward. This proposal seeks to strike a balance between the need for a user contribution (equity and financial considerations) and keeping costs down for clubs. The fee is designed to include all direct electricity charges (not including service fees or clubhouse electricity) and 33% of estimated maintenance costs for floodlighting.

Option 3 represents a significant subsidy to the maintenance and operational costs of floodlighting. The costs to Council of implementing the different options follows.

These figures represent costs at SCC managed sites only – not including Management Committee facilities. Costs at Management Committee facilities are not available as Committees have either not identified the costs in their financial statements, or not submitted financial statements. A broad estimate would indicate the costs for the Management Committee sites approximately equal to the SCC sites, effectively doubling the $ amounts below.

2017/18	OPTION 1 As Invoiced	OPTION 2	OPTION 3	OPTION 4
Actual Cost	$102,687	$102,687	$102,687	$102,687
Recovered from Clubs	$94,694	$18,440	$46,849	$0
Net Cost to Council SCC managed facilities only	$7,993	$84,247	$55,838	$102,687

Option 3 is identified as the preferred way forward.

It is anticipated that floodlight charges / fees are likely to reduce as clubs conserve electricity and floodlight controllers provide more accurate data.

Implementation of Option 3

Due to the hardship identified by the clubs in paying the unexpected floodlighting invoices, it is proposed that all local club fees that can be attributed to floodlights usage for the 2017/18 financial year be waived, and no charges be applied until 30 March 2019.

This will ensure that clubs are given time to implement all measures necessary to meet future costs. This will include:

1. Ulladulla Netball 2017 fees be refunded (already paid).

2. Management Committee clubs:

a. fees be refunded to local clubs

b. Management Committees be subsidised for the 2017 ($20,888) and 2018 fees ($ currently unknown).

c. Subsidy payments to be made from the Sportsgrounds operational budget.

Once controllers are implemented, it is recommended that fees be charged quarterly (from 1 April 2019).

It is proposed that the Floodlighting fee is to be Consumer Price Indexed (CPI) annually thereafter, in line with Council’s other Fees & Charges. However, as is a likely that electricity prices will continue to rise above CPI, it is recommended that the Fee also be adjusted to include any such future price increases beyond CPI annual fee increases.

Floodlight Controllers: implementing new systems for better reporting and fairer invoicing

Floodlight controllers have been installed at all benchmarked councils, with the exception of Kiama.

All councils contacted identified that their existing systems and fee structures require review and are currently complex and inadequate. Should Council decide to implement the proposed recommendation we will be proving a model and standard by which floodlighting at sportsgrounds is managed. The councils contacted have indicated their interest in knowing how this progresses and is implemented, as they may use us as a model for their own reviews and potential way forward.

The controllers provide for:

· Accurate usage data - better long-term planning,

· Less club paperwork with log books,

· Remote access turns on and off,

· Safer,

· Less wastage,

· No keys required,

· Senior club members can be responsible from home and juniors can’t leave light on,

· Security of who can access the system,

· Streamline and ensure accuracy of usage data & charges,

· Reduce complexity of administration and reduce staffing requirements,

· Fairer usage charges – no guesswork/estimating.

Floodlight controllers have now been installed at twelve (12) high-use Shoalhaven sportsgrounds. To ensure equity and ease of use, it is recommended that the installation of floodlight controllers continues to be rolled out, to include all sportsgrounds where floodlighting is in place (21 sports grounds). Any new / future provision of sportsgrounds with floodlights should have a controller system installed as standard.

A Stronger Country Communities Fund grant application is currently pending, seeking funds to complete installation at all sportsgrounds, including Management Committee sites in 2018/19.

However, the installation of controllers has prompted a review of electrical boards and infrastructure at the sportsgrounds. Much of this infrastructure has been found to be aged and non-compliant and / or will not support the installation of a controller system.

Initial estimates for installation were inadequate, and a further $62,500 is required to complete installation at all sportsgrounds. Of this, $20,000 can be sourced from the Lighting Upgrades budget and this Report requests a further $42,500 be allocated to enable all sportsgrounds with floodlights to be fitted with controller systems. It is proposed that these funds be identified in the September Quarterly Budget Review.

Council to resume management of all Electricity Accounts:

When controllers are installed at facilities where the electricity account invoice has previously been paid directly by the club, Council will resume paying the account directly, and these clubs will be invoiced as per all other sites.

This measure ensures Council’s responsible custodianship and governance of public infrastructure.

Council to prepare all quarterly invoices for floodlighting

Council staff will prepare quarterly invoices for the local clubs and issue these on behalf of the Management Committees. Payment will be made by the clubs directly to the Management Committees as per current practice. This change in administration will reduce the work load of Management Committee volunteers.

The Management Committees will continue to pay electricity bills and maintain floodlights.

Community Engagement

Sports Board

The Shoalhaven Sports Board supports retaining, simplifying and ensuring greater equity in the application of charges for floodlights as well as the installation of new floodlight controller systems to improve data and charges accuracy. The initial clarification on the current status of accounts and charges of floodlighting came to Council’s attention via the Sports Board at their meeting. The Chair of the Shoalhaven Sports Board attended the briefing on behalf of the Sports Board and indicated support for the Option 3 proposal.

Measures to Improve Communication with Clubs

When 2017 usage was invoiced, clubs were given very short notice given the substantial change to previous invoicing practice. This has been identified as poor business practice and not to be repeated when changes are proposed and implemented.

Further, staff have apologised that a three-week period was nominated as the due date for payment. This is a default setting for Council’s digital invoices, and staff neglected to extend the period, which would be appropriate for such large charges.

Staff have commenced the following improved consultation procedures with sporting clubs:

· Keep clubs involved in the process and explain why we need to charge.

· Regular news-email to all sporting clubs using Council managed facilities, providing information and updates

· Bi-annual sporting groups workshops being held (North and South), to engage clubs in a consultative forum for sporting community development and promote club-Council partnership.

Management Committees

Staff will liaise with Management Committees and local clubs to advise of changes to invoicing procedures.

Financial Implications

In the longer term this presents a sound way forward to manage and operate this aspect of Council business. Feedback from stakeholders indicates a change is required and Option 3 presents a more balanced outcome.

The following items have funding implication for Council:

Funding Request

$42,500 Aged and non-compliant infrastructure at several facilities has meant that initial estimates for installation were inadequate. A further $42,500 is required to complete installations and will need to be identified at the September Quarterly Budget Review.

Waiving Fees - Expenses:

$2,092 Ulladulla Netball 2017 fees be refunded or provided as a credit to the club against future charges (as already paid).

$20,888 2017/18 - Management Committees – all fees already paid by local clubs are to be refunded by Council staff to the clubs from the Sportsgrounds operational budget.

$10,444 (est.) 2018 – 31/03/2019 fees ($ currently unknown)
Loss in income for Management Committees be paid by Council to the Committees from the Sportsgrounds operational budget.

Future Income

Calculated from 2017 reported usage, floodlighting charges revenue is estimated to be:

$45,390 (est) 2018/19 financial year

$90,781 2019/20 financial year

Funds pertaining to the Management Committees (approx. 48.4% of total income), will be paid directly from clubs to the Management Committees for expenditure towards floodlights. The sportsgrounds maintenance subsidy paid by Council to Management Committees further supplements floodlight maintenance expenses.

Future Fee Adjustments

The Floodlighting fee is to be Consumer Price Indexed (CPI) annually, in line with Council’s other Fees & Charges, and further adjusted to accommodate any future increases to electricity charges beyond CPI.

Strategy and Assets Committee – Tuesday 18 September 2018

Page 1

SA18.218 Options for Rate Relief for Drought-Affected Farmers

HPERM Ref: D18/303835

Group: Finance Corporate & Community Services Group

Section: Finance

Attachments: 1. Draft Amended Harship Policy (under separate cover) ⇨

Purpose / Summary

At its Ordinary Meeting on 28 August 2018, Council resolved to receive a report at the September Strategy & Assets Committee Meeting on options available to Council to amend its Hardship Policy to provide further rates relief to affected farmers, as well as consider other support measures.

Recommendation (Item to be determined under delegated authority)

That Council:

1. Note the actions taken to date in promoting the NSW Government’s Drought Assistance.

2. Amend its Hardship Policy to allow all Farmland rated property owners experiencing financial hardship due to the drought to make an application to have their rates deferred to the 2019/20 financial year.

3. Endorse the issue of two Drought Relief Waste Disposal vounchers for each Shoalhaven property with a ‘Farmland’ or ‘Farmland – Dairy Farmers’ rating.

4. Place the financial assistance measures it proposes for drought-affected farmland on public notice, in accordance with Section 356 of the Local Government Act, and receive a further report following the notification period and review any written submissions received.

5. Note that Council staff, as an interim measure, will process any payment plan for the 2018/19 financial year submitted by eligible farmers experiencing financial hardship.

6. Promote the measures outlined in this report that provide practical support to drought affected farmers across the Shoalhaven.

Options

1. Council maintain the status quo and not introduce a rate holiday

Implications: Nil, but contrary to Council resolution

2. Council amend its Hardship Policy to allow all Farmland rated property owners experiencing financial hardship due to the drought to make an application to have their rates deferred to the 2019/20 financial year

Implications: Delays the receipt of $1.9M of rate revenue to 2019/20 (worse case senario), impacting service delivery, at a maximum estimated opportunity cost of $229K. Allows Council flexibility to adjust its response with the benefit of additional information when rates and charges are made for the 2019/20 financial year.

3. Council amend its Hardship Policy to allow property owners experiencing financial hardship in the following Farmland sub-categories to make an application to have their rates deferred for the duration of the drought

a. Dairy Farmers

b. Ordinary Farmland

c. Both Dairy Farmers and Ordinary Farmland

Implications: Depending on the duration of the drought, there is a significant cost to Council. The cost may be mitigated to the extent that financial assistance is limited to Dairy Farmers.

4. Council amend its Hardship Policy to allow property owners experiencing financial hardship in the following Farmland sub-categories to make an application to have their rates deferred for the duration of the drought plus a period of up to twelve months

a. Dairy Farmers

b. Ordinary Farmland

c. Both Dairy Farmers and Ordinary Farmland

5. Implications: Depending on the duration of the drought, there is a significant cost to Council. The cost may be mitigated to the extent that financial assistance is limited to Dairy Farmers.

Background

At its Ordinary Meeting on 28 August 2018, Council resolved (MIN18.642) that it:

1. Wishes to support in practical ways the plight of our farmers and those who make their living off the rich farming and grazing lands throughout the City.

2. Promotes the assistance provided by the NSW Government to those impacted by drought under the recently announced $1 Billion support package.

3. Immediately suspend the accrual of interest from 1 July 2018 on all farmland rating properties with overdue rates and charges.

4. Write to the State Government seeking an exemption to allow a rates holiday

5. Receive a report at the September Strategy & Assets Committee Meeting on options available to Council to amend its Hardship Policy to provide further rates relief to affected farmers.

Action to date

Promotion of NSW Government drought assistance

Council staff have commenced promotion of the drought appeal and support for farmers. This has occurred through the placement of content in Council’s E-newsletter. The following information appeared in Council’s E-news on 5 September:

Are you a farmer that needs support? The government has the following farmers emergency drought relief support programs in place. Find out more about the Emergency Drought Relief Transport Subsidy.

Regional Investment Corporation (RIC) is the Commonwealth’s farm business concessional loans. The RIC can offer two loan products for farm businesses – Farm Investment Loans and Drought Loans. For more information contact the RIC on 1800 875 675 or visit the RIC website.

Drought Assistance Fund Interest free loans of up to $50,000 are available to eligible primary producers to assist in implementing systems and management practices that enhance the sustainability of their enterprise by funding; Transport of livestock, transport of fodder and/or water; Water and Fodder infrastructure, and Banking of genetic material of livestock.

The Australian Government provides a number of assistance measures to support farm families, farm businesses and rural communities to prepare for, manage through and recover from drought and other hardship. Find out more on the Government's Assistance Measures page.

Lifeline - If you are experiencing a personal crisis, help is available. No one needs to face their problems alone. Contact Lifeline on 13 11 14 (24/7).

Ongoing promotion will continue to occur through Council’s E-news, on our website as news articles and in our social media platforms. A pop-up message and slider will be used to promote the drought appeal on our Council web platform. Displays will also be provided at Council buildings through brochures and posters. Promotion through media channels and other methods will also be utilised to ensure the message is conveyed out into the community.

A banner could be placed on Nowra bridge and other displays could be installed around the City, depending on budget availability.

Suspension of interest accrual on Farmland rated properties

Before the 31 August 2018 due date for the payment of rates, only $22,931 was outstanding as arrears from the Farmland Category, comprising 18 Farmland assessments and one Farmland – Dairy Farmers assessment. To enact Council’s resolution, interest has been turned off for the rate categories ‘Farmland’ and ‘Farmland – Dairy Farmers’ for 2018/19 as a proactive application of s567 of the Local Government Act 1993.

Reactivation of the interest accrual function beyond 30 June 2019 will be a metter for consideration in the development of the 2019/20 draft budget and having regard to the duration of and recovery from the drought.

Discussion

Definition of ‘rates holiday’

Under the Local Government Act 1993, all land in an area is rateable, unless it is specifically exempt from rating.

Council staff have interpreted the reference to a ‘rates holiday’ in Part 4 of the resolution from 28 August 2018 as being a deferral of rates. This interpretation accords with the drought assistance actions taken by other councils such as Wollondilly and Wingecarribee Shire Councils.

Should Council intend the ‘rates holiday’ to mean a ‘waiver’ of rates rather than a deferral, then application would need to be made to the NSW Government to allow the requested land to be exempt from rates in accordance with s556 of the Local Government Act 1993 and Regulation 123 of the Local Government (General) Regulation 2005. Subject to this clarification, the requested letter to the State Government will be sent but it should be noted that the chance of success in having the Act and Regulation changed would be greater if it was a coordinated approach by councils via LGNSW.

An alternative to seeking the exemption from rating would be for Council to make a donation to drought-affected farmers. Such a financial assistance measure to a “proposed recipient who acts for private gain” requires public notice of Council’s proposal for at least 28 days, in accordance with Section 356 of the Local Government Act 1993. A further report would need to be provided following the notification period and review of any written submissions received. The cost of this alternative is far greater than the opportunity cost of deferral of rates for 2018/19.

Options to amend POL16/200 Revenue – Hardship Policy to provide rates relief

The Department of Primary Industries’ Combined Drought Indicator (CDI) identifies the Shoalhaven experiencing an ‘Intense Drought’ phase in all but five of its parishes, with the latter identified in a ‘Drought’ phase. The CDI is updated at a parish level on a monthly basis.

A number of Options for rate relief for drought-affected farmers experiencing financial hardship have been identified, two of which are comparable to the approach of other Councils:

· Deferral of rates until the beginning of the 2019/20 financial year (Wingecarribee)

· Deferral of rates for the duration of the drought

· Deferral of rates for the duration of the drought plus a period of up to twelve months (Wollondilly)

To operationalise the meaning of ‘drought duration’, it is proposed that the City be defined as drought-affected while its parishes are identified by the CDI as being in the ‘Drought Affected (weakening)’ phase or worse.

The following data about the Farmland Category updates the rating structure in Council’s Integrated Strategic Plan 2018:

Sub-Category	No of assessments	Total Rate Yield	Average
Ordinary Farmland	725	$1,654,033	$2,281.43
Dairy Farmers	130	$257,304	$1,979.27
Total	855	$1,911,337

This data has been used to model the financial impact of each of the Options presented above. While deferral of rates does not affect the revenue recorded in 2018/19, it does impact the cash available to Council to pursue its program of services. The impact on available cash is referenced further later in this report.

To determine the opportunity cost associated with the delay in receipts, NSW Treasury’s social discount rate of 7% has been used. This discount rate better reflects the fact that any given public investment occurs at the expense of alternative public investments and aligns more closely with the efficiency criterion used in Cost Benefit Analysis.

Given that drought duration and the number of farmers applying for drought relief are unknown, the maximum cumulative impact using total assessments over a range of one to five years from 2018/19 (‘Year 0’) is presented in the following table for each Option, in today’s dollars, compared to the status quo (all other things kept the same):

	*Duration of drought (years)*
Option	1	2	3	4	5
2 Deferral to 2019/20	-$229K	-	-	-	-
3a Deferral for drought Dairy Farmer	-26K	-$87K	-$203K	-$384K	-$636K
3b Deferral for drought Ordinary Farmland	-$170K	-$560K	-$1,307K	-$2,468K	-$4,091K
3c Deferral for drought All Farmland	-$196K	-$647K	-$1,510K	-$2,852K	-$4,727K
4a Deferral for drought + 12months Dairy Farmer	-$62K	-$180K	-$362K	-$616K	-$948K
4b Deferral for drought + 12months Ordinary Farmland	-$401K	-$1,158K	-$2,329K	-$3,962K	-$6,096K
4c Deferral for drought + 12months All Farmland	-$463K	-$1,338K	-$2,691K	-$4,578K	-$7,044K

Note: Option 1 is status quo and not introduce a ‘rates holiday’

These estimates compare to a maximum total cost of $1.9M in 2018/19, should a donation equal to rates be made to all properties categorised as Farmland.

Given the uncertainty associated with the duration of the drought, together with the likely cascading effects on the community of an extended drought, deferral of 2018/19 rates until the beginning of the 2019/20 financial year provides immediate relief and allows assistance measures to be reviewed as part of the making of rates and charges for 2019/20. This approach provides Council with the flexibility to adjust its response with the benefit of additional information.

Should Council adopt Option 2, a revised copy of POL16/200 Revenue – Hardship Policy is attached.

Eligibility Criteria

The eligibility criteria applied by the NSW Government for drought relief vary depending on the element of the Emergency Drought Relief Package. For example, Drought Transport Subsidies require applicants to declare:

a) They are the owner and operator of a farm business in NSW

b) They as a sole trader, partnership, trust or private company and trades agricultural products

c) The business is registered with the Australian Taxation Office as a primary producer, and have an Australian Business Number (ABN)

d) The owners and operators of the business earn more than 50% of their gross income from the primary production enterprise under normal seasonal circumstances

e) The business is being negatively impacted by drought conditions

f) The owners and operators of the business do not have gross off-farm assets exceeding $1,000,000 (excluding funds in a registered superannuation fund)

This contrasts with the eligibility for waivers that apply automatically, namely:

· Local Land Services Rates – applies to ‘rateable land’ under the Local Land Services Act 2013, generally land 10 hectares and above

· Fixed charges for water licences - general security licence holders (and supplementary water access licence holders) in rural and regional NSW across surface and ground water systems

· Farm Innovation Fund interest - existing Farm Innovation Fund customers and all applicants who submitted an application on or before 30 July 2018

The diversity of eligibility criteria make it extremely problematic to tie any relief Council provides to drought-affected farmers to eligibility criteria associated with the NSW Government’s Emergency Drought Relief Package. Therefore, in order to streamline the processing of any financial assistance measures adopted by Council, it is proposed that Council adopt the same approach as Wingecarribee Shire Council and only require a Financial Hardship Application – Farmland, similar to the Application For Hardship Relief form that is part of Council’s existing POL16/200 Revenue – Hardship Policy.

Payment plans for affected farmers

Council already recognises that some ratepayers may experience financial difficulties in meeting their rate commitments on time. A ratepayer may make an arrangement, at any time, to pay off their outstanding accounts by regular payments, subject to the following guidelines:

· All agreements must be in writing and signed.

· The amount and frequency of the payments under the agreement are to be acceptable to Council.

· Agreements should, where possible, seek to have the outstanding rates and annual charges cleared by the end of the current financial year.

· Current rates and charges are to be paid when they fall due in addition to the arrangement plan, where possible.

· All arrangements are in accordance with Council policy and will be reviewed on regular basis.

Should Council adopt Option 2 - Deferral to 2019/20 as recommended, POL16/200 Revenue – Hardship Policy needs to be amended to ensure that payment in the following financial year is allowed.

In addition to the consideration of options available to Council to amend its Hardship Policy, Council also mentioned a number of other options to provide support to drought-affected farmers, namely:

· Reduction in water rates;

· Providing Tipping vouchers;

· Investigate the Load limits and the use of local roads for farmers tractors as soon as possible and

· Other support options

These options are discussed below.

Other Support Options

Reduction in water rates

This option of a water rebate for drought-affected farmers is the subject of separate report to be presented to Strategy & Assets Committee at its meeting of 18 September 2018.

Providing Tipping Vouchers

Asset and Works propose the issue of a Drought Relief Waste Disposal voucher[s] for each Shoalhaven property with a ‘Farmland’ or ‘Farmland – Dairy Farmers’ rating. Like the Household Waste Disposal vouchers that are issued annually with rates notices, each special voucher will be valid for use until 31 July 2019 and allow for disposal of up to 300kg of waste at a Council weighbridge waste depot (Nowra, Ulladulla or Huskisson) or up to 1m3 at the other waste depots (Berry, Kangaroo Valley, Callala, Sussex Inlet, Bendalong, Lake Conjola or Kioloa).

Waste operations staff will allow acceptable non-household farm waste to be disposed with, or instead of, household waste when the special vouchers are used.

The estimated cost of this proposal is $70,000 for the issue of one voucher and $125,000 for the issue of two vouchers.

Load limits and use of local roads by farmers’ tractors

With regard to Tractor and B-Double access to local roads, Council is not the only authority involved in the approval process and sometimes structural issues prevent access to a local road, regardless of the situation.

However, to provide assistance to drought-affected farmers, Council will:

· Make our involvement in any access application process a very high priority and turn our response around as quickly as possible

· Where the road alignment is an issue for B-Doubles delivering fodder, Council can implement traffic control measures, free of charge, to assist the B-Double negotiate tight alignments

· Be available to meet with farmers and discuss their local road access plans and concerns and help them navigate any approval process well in advance of their needs.

Other support options

· Council’s Assets & Works Group also propose the following drought relief measures:

o Waiver of fees for commercial quantity loads (over 2m3) of Council’s pasteurised garden waste product, where and when available, up to 31 July 2019. The mulch/compost-like product may assist farmers in restoration of soils and improve retention of moisture when it does rain.

The product is:

i. developed from the shredding and pasteurisation of relatively clean green waste stockpiles at each waste depot in accordance with ‘The pasteurised garden organics order – 2016’ (NSW EPA);

ii. transported to, and refined by, screening at Huskisson Waste Depot for further maturation/storage;

iii. loaded by waste operations staff (loading fee to be waived for drought affected farm destinations) at Huskisson; and

iv. to be applied to land by consumers in accordance with the conditions and time frames outlined in ‘The pasteurised garden organics exemption – 2016’ (NSW EPA).

o Acceptance of silage wrap, at no charge, at all 10 waste depots (not just West Nowra and Ulladulla) to minimise travel distance for farmers, up to 31 July 2019. For acceptance at no charge, silage wrap materials should be presented sufficiently decontaminated for recycling purposes (i.e., free of silage or other waste).

· A Mayor’s Relief Fund “Drought” appeal has been launched to assist drought-affected farmers in the Shoalhaven.

Community Engagement

It is proposed to publicly notify the Community of any financial assistance measures adopted by Council, in accordance with Section 356 of the Local Government Act 1993.

Following the notification period, and evaluation of submissions, the amended Hardship Policy can be passed by Council. To expedite financial assistance measures, Council staff will process payment plans for the 2018/19 financial year submitted by eligible farmers experiencing financial hardship, in accordance with the existing POL16/200 Revenue – Hardship Policy, but using an amended Application For Hardship Relief form.

Policy Implications

Amendment to POL16/200 Revenue – Hardship Policy required to ensure that payment of rates and charges in the following financial year is allowed.

Financial Implications

The recommended Option 2 - Deferral to 2019/20 does not change revenue for 2018/19 but will increase the debtor balance. However, the Option adversely impacts Council’s cash flow receipts in 2018/19, with flow-on effects for service delivery and the capital works program.

The financial impact on 2018/19 cannot be precisely estimated because the recommended Option 2 depends on the take-up rate among affected farmers. However, the maximum opportunity cost associated with Option 2 is estimated at $229K. The financial impact and the impact on cashflow will be monitored and reported to Council at each Quarterly Budget Review during 2018/19.

In the event of a prolonged period of drought (extending beyond the current financial year), future budgeting will need to consider the actual level of assistance provided to farmers during 2018/19 when determining the level of ongoing assistance to be made available.

Strategy and Assets Committee – Tuesday 18 September 2018

Page 1

SA18.223 New Shoalhaven Bridge - Nowra

HPERM Ref: D18/305160

Group: Assets & Works Group

Section: Business & Property

Attachments: 1. Proposed Acquisitions (councillors information folder)

2. Draft Submission to RMS - Nowra Bridge Project ⇩

Purpose / Summary

To provide Council with an opportunity to consider a report on the NSW Roads and Maritime Services (RMS) proposals for acquisition and/or occupation of Council owned land in connection with the Nowra Bridge project. In addition, Council has an opportunity to provide a response/submission to the RMS environmental assessment and concept design for the Nowra Bridge Project which is on display for five weeks from Monday 27 August until Friday 28 September 2018.

Recommendation (Item to be determined under delegated authority)

The Council authorise the General Manager to:

1. Make a submission to the Roads and Maritime Services on behalf of Council in relation to the RMS proposal to construct an additional bridge crossing of the Shoalhaven River immediately west of the crossing that currently connects Bomaderry to Nowra. The submission is to cover the matters contained within this report and specifically highlight the following:

a. Council is adamant that its preferred option is for grade separated intersections and does not support at grade treatments;

b. 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;

c. With regards to urban design, Council requests that the RMS urban design team agrees to a plan and process that involves Council staff in the urban design to ensure integration between the Nowra Bridge project and the Council’s river foreshore masterplan;

d. Opportunities exist for RMS residual assets that may have the potential to enhance some of Council’s long term projects, and Council requests that the RMS work closely with Council staff to achieve the best value for money from residual assets.

2. Make further submissions as the design process commences, briefing Councillors regularly and reporting back to Council as required.

3. Request RMS agreement to further discuss its requirements for the occupation of Council owned land and to negotiate agreements subject to formal Council approval, for the acquisition of various properties.

Options

1. Adopt the recommendation.

Implications: Council will make a submission to RMS in accordance with the information in this report.

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

Implications: Council will forego an opportunity to inform RMS of its views relative to various aspects of the Nowra Bridge project.

Background

This report has been prepared following a number of briefings by RMS and Council staff and features contributions from Recreation Community and Culture Section (Strategic Planner), Assets Section (Traffic and Transport), Strategic Planning (Local Planning Team), Economic Development Manager and the Business and Property Section.

In February 2018, RMS publicly exhibited the Preferred Option for the Nowra Bridge project. At Council’s Strategy and Assets Meeting on 20 March 2018, the Committee resolved (MIN18.183) to make a submission to RMS in relation to the Preferred Option, specifically:

“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 adamant that its preferred option of grade separated intersections at each location (Bolong Road to Bridge Road) should be 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 development of options for consideration.

3. Council is opposed to the “at grade” option proposed as it 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 briefing 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.

7. Council write to Federal Member for Gilmore and State Members for South Coast and Kiama informing them of Council’s resolution expressing disappointment in relation to the RMS preferred option and thanking them for their support.”

On 23 August 2018, staff from the RMS project team briefed Councillors and Council staff on the upcoming public exhibition of the Review of Environmental Factors (REF) and Concept Design for the Nowra Bridge Project. At the briefing, RMS staff advised of the revisions to the concept design of the Nowra Bridge project since the preferred option exhibition in February and March this year, summarised what was found as part of the technical investigations and identified Council owned land that is subject to land acquisition or temporary lease arrangements. RMS acknowledged that it was difficult for Council to understand some of the proposed land acquisition and leasing proposals in the absence of the design.

On 27 August 2018 RMS placed the REF and Concept Design for the Nowra Bridge Project on exhibition, from Monday 27 August until Friday 28 September 2018 (inclusive). The documents included in the exhibited material include:

· REF

· Traffic and Transport Assessment

· Noise and Vibration Assessment

· Aboriginal Cultural Heritage Assessment

· Non-Aboriginal Statement of Heritage Impact

· Urban Design Report, Landscape Character and Visual Assessment

· Flooding and Hydrology Assessment

· Socio-economic Impact Assessment

· Biodiversity Assessment

· Soil and Water Assessment

· Operational Water Quality Assessment

RMS staff advised Council they are prepared to attend additional briefings if required and will accept late submissions from Council should Council require additional time.

A submission has been prepared on the REF and Concept Design for the Nowra Bridge project and is provided as Attachment 2 to this report.

Revised Concept Design

The exhibited material documents a number of design changes that have been incorporated into the concept design since the preferred option was announced in February 2018. The revised concept design does not address all of the concerns raised previously by Council with RMS. The revised concept design includes but is not limited to the following:

· Removal of the signalised intersection at the new local road connection off Lyrebird Drive to Princes Highway. The intersection remains, however will maintain restricted left-in left-out movements only.

· Restricted left-in-left-out access to Scenic Drive from Bridge Road.

· Provision of a dedicated right turn only lane from Bolong Road onto the Princes Highway.

· Provision of a dedicated left turn only lane and three dedicated right turn lanes from Illaroo Road onto the Princes Highway.

Outstanding Issues

The below summary details the outstanding issues which have not been resolved by the concept plan and that need to be addressed:

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

· There is likely to be significant upstream and downstream impacts following construction of the Nowra Bridge project. Council does not agree that the proposed merging of three lanes to two will not exacerbate traffic congestion, particularly in times of higher seasonal traffic demand. Council reiterates that the Nowra Bridge project, in conjunction with the Berry to Bomaderry upgrade, and continued background traffic growth, will bring forward the need to extend 3 lanes of traffic in each direction continuous through Bomaderry and South Nowra.

· Reiterate that there will be unacceptable traffic impacts on Bridge Road at the intersection with Hyams Street (due to the restrictions proposed at Scenic Drive) and Council believes traffic signals will be required at this intersection. These signals must be provided up front to improve pedestrian and traffic safety given the proposed traffic changes and parking impacts. Despite these concerns and the changed traffic conditions proposed at Scenic Drive, it is considered that Scenic Drive should be closed from Bridge Road permanently with a new local road connection off Hyam Street.

· Council does not accept the parking impacts proposed in the civic precinct (particularly land to the north of the Shoalhaven Entertainment Centre) which provides significant overflow parking relief for the Council building and entertainment centre precincts. A replacement 120-space car park needs to be provided within reasonable walking distance and with safe pedestrian linkages back to the civic precinct. Council suggests this needs to be provided on land between Scenic Drive and Hyam Street, with a road link between Scenic Drive and Hyam Street, and safe and efficient pedestrian access back to the traffic signals required at the intersection of Bridge Road and Hyam Street. There is no other land available within a reasonable walking distance of the Council and Shoalhaven Entertainment Centre precinct.

· Reiterate that the changes at the intersection of Bridge Road and Scenic Drive presents an opportunity to incorporate a pedestrian refuge on Bridge Road (immediately south of Scenic Drive) within the current proposed painted median, without impacting two lanes of southbound traffic. This addition should be included to improve vehicular and pedestrian safety on Bridge Road.

· Reiterate that traffic signals will 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. These signals must be provided up front to improve safety for the proposed intensified use of this intersection (proposed for access to the Greys Beach foreshore for construction).

· Reiterates Council’s willingness to work closely with RMS’ 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 current concept plans do not allow the proposed pedestrian and cyclist links to be examined in detail).

· The exhibited material illustrates a pedestrian and cyclist connection is proposed from the foreshore to Illaroo Road (on the south west corner of the Princes Highway/Illaroo Road intersection). A connection from the foreshore level to Illaroo Road in this location is supported, however it is not clear how this will be achieved given prevalent levels, adjacent cliff line and potential Aboriginal cultural heritage.

· The concept design fails to demonstrate a pedestrian/cyclist connection between the proposed cul-de-sac at Pleasant Way back to the Highway and with the old bridge.

· Reiterate that a pedestrian/cyclist “overpass” must be provided to connect the Pleasant Way precinct to the civic precinct to improve pedestrian accessibility over the proposed wider Highway and minimise the number of times pedestrians/cyclists have to interrupt traffic when crossing the Highway. The current use of the existing crossing is highly utilised and is likely to intensify when the old bridge is transformed into a higher order pedestrian and cyclist link, and the proposed Highway upgrade does not cater for an efficient pedestrian-cyclist link from the old bridge into Nowra which is a significant omission, and does not satisfy Council’s objectives of improving this link and better integrating east-west in the foreshore precinct and northern fringe of Nowra CBD.

· The concept design illustrates a duplication of a pedestrian/cyclist path in the Scenic Drive precinct (at the bend).

· The proposed “free left slip lane” out of Illaroo Road (for movements West to North out of Illaroo Road on to the Highway) will cause safety and efficiency issues, due to the very high demand for weave movements between Illaroo Road and Bolong Road. This is of significant concern and the movement must be signalised in Council’s view (with a “left turn on red after stopping” arrangement, as per existing) to address this concern.

· Council does not accept the changed proposal (now proposed left in/left out arrangements) at the new intersection south of Bridge Road (new connection to Lyrebird Drive). Council considers this will have an unacceptable impact on residents and businesses of Pleasant Way and Wharf Road, and unacceptable impacts on residents of Hawthorn Avenue, Riverview Road, Elia Avenue, Lyrebird Drive, and Ferry Lane, and on residents and the Nowra High School community on Moss Street. The current proposal will result in unacceptable travel times, delays, adverse safety impacts, and adverse impacts on noise and amenity, and conflicts with Council’s objectives of seeking to improve the integration and accessibility for the community to the east of the Highway, not provide a poorer level of access, which will result from the current proposal. The previously proposed traffic signals at the new junction should be reinstated, noting RMS previously documented that the proposed new signals would not adversely impact traffic flows on the Highway, compared to current conditions.

· The concept design shows inadequate lane widths on all slip lanes (given how vulnerable the network is to breakdowns and crashes in the vicinity of the river, additional width should be provided on all slip lanes to accommodate infrequent breakdowns, in accordance with standards).

· Opportunities exist for RMS residual assets that may have the potential to enhance some of Council’s longer-term projects, including barge loading facilities at Greys Beach, and car parking infrastructure to the rear of the Nowra Aquatic Park which may service construction works and provide a longer-term parking solution for the Riverfront Precinct.

Additional Matters

In addition to the above outstanding issues, additional matters have been identified through the review of the exhibited material. An assessment of the impact and a number of recommendations have been made to ensure that the impact to Council owned and managed land and assets are minimised. In summary, a number of Council owned and managed assets are impacted for the duration of the construction works and once complete, which warrants requesting compensation or provision of replacement infrastructure. The following provides a summary of the Council owned and managed assets which will be implicated and the impacts which could transpire as a result of the works:

· Moorhouse Park – the works involve significant impact (loss) to the existing heritage listed Bicentennial Memorial (Floodboat Shelter), access to the foreshore area from the western side of the highway and significant impact (loss) to the existing playground along the foreshore. Part of Moorhouse Park along the foreshore area will be part of a potential ancillary site.

In relation to the Bicentennial Memorial, Council encourages dialogue with RMS for the relocation of the structure as suggested in Appendix F (Non-Aboriginal Statement of Heritage Impact) of the exhibited material. Other locations for the siting of the memorial should be assessed in relation to heritage impact. Consideration of a new site for the Bicentennial Memorial must be undertaken in consultation with Council and must ensure that it remains within the riverfront area to ensure the intrinsic relationship with the Shoalhaven River continues. The relocation of the memorial must be fully funded by RMS.

The concept plan indicates pedestrian access to the foreshore from the western side of the Highway. Access must be accessible and must also consider improving accessibility, comfort and safety of the underpass through to Mavromattes Reserve. This will be particularly important noting Council’s preference to close Scenic Drive from Bridge Road in accordance with the proposed Nowra Riverfront Leisure and Entertainment Precinct masterplan.

The loss of the playground and park area needs to be addressed to ensure that loss to social infrastructure as a result of the bridge project, is managed. RMS must ensure that suitable replacements or monetary compensation is provided to Council to ensure that this infrastructure can be replaced in the fullness of time. Appendix I (Socio-economic Impact Assessment) of the exhibited material indicates that impact will only be incurred during construction on the Council owned section of land, with permanent occupation of the Crown Land portion of Moorhouse Park by the Nowra Bridge. A correction needs to be made in this study as Lot 1 DP 1127316 within Moorhouse Park, is Council owned land and in part will be permanently occupied by the Nowra Bridge.

· Greys Beach including North Nowra Rotary Park - the works involve impact to the use of Greys Beach for parking, passive recreation and access to the boat ramp as a result of the site being utilised for a potential ancillary site and launching area. It is acknowledged that the proposed lease indicates that the boat ramp is not included in the lease area but will be utilised for the storage of plant and material, launching of construction barges and transfer of plant and materials during the construction of the Nowra Bridge. North Nowra Rotary Park is significantly impacted by the acquisition of land required for the northbound landing of the bridge and the widening of Illaroo Road. Considering the significant impact that can be anticipated at the boat ramp and adjacent car park at Greys Beach, the RMS must provide suitable replacement infrastructure to minimise these impacts to users during construction of the Nowra Bridge.

Greys Beach has been recently master planned and some works undertaken on the boat ramps, access ways and car parking. The area is highly utilised, particularly from September through to May by watercraft users. Appendix I of the exhibited material indicates that Greys Beach will be affected by a temporary lease of part of the land, construction of a temporary jetty and associated exclusion zone. The lease / works will have significant impact on users of this area, specifically the reduced navigable water area of the Shoalhaven River will impact non-motorised sporting groups who practice and race in this location. In addition, the Study indicates that during the construction of the Nowra Bridge (i.e. such as during craning new sections of the bridge into place), marine vessels will be restricted and, in these events, community and river users would be notified in advance. This will also impact users of Paringa Park in the same regard. The Study indicates that there would be an overall high impact. RMS must consider potential replacement infrastructure to minimise impact to watercraft users during construction of the Nowra Bridge. In addition, RMS must ensure that Greys Beach is returned to its original or improved condition once construction is complete. Council would encourage dialogue with RMS to ensure that the needs of the user groups are met as part of the finishing of the site after the project is complete.

North Nowra Rotary Park will largely be affected as a result of the works associated with the Nowra Bridge. The existing amenities building, car park and paths will be absorbed as a result of the bridge landing, realignment of the intersection and widening of Illaroo Road. Appendix I of the exhibited material indicates that the remaining area of the park will be returned to public use with relocated parking area and shared park. It should be noted that the amenities building is not being replaced as part of the reopening of the park. Given the reduction in size of the park, Council should request that an amenities building is included in the reopened park to compromise for the loss of open space and associated social impact. If an amenities building within the park is not deemed necessary, Council should liaise with RMS to determine a suitable replacement location.

· Previous Nowra Sailing Club and Wharf – the works will require maritime activity periodically from Nowra Wharf which will have a minor impact. It is unclear how periodic or the timeframe in which the Nowra Wharf could be used for maritime activity such as the launching of construction barges and transfer of plant and material.

Similar to Greys Beach, the wharf and boat ramp may be closed to marine vessels during certain construction activities. There will be some impact in these situations where the restriction of the use of the wharf and boat ramp impacts practice and race use by water sport groups and users. RMS must provide suitable replacement infrastructure to minimise impact to watercraft users during construction of the Nowra Bridge.

· Paringa Park – the works will restrict navigable water areas of the Shoalhaven River which are utilised by non-motorised sporting groups.

Paringa Park has recently been master planned to transform into the non-motorised water sporting hub. The masterplan includes Rowing Club house and boat storage, access ramps and launching area for boats including dragon boats, Sea Scouts clubhouse including storage for water dragons boats, and improved signage, footpaths, parking and seating. The direct impact of the works to Paringa Park are considered minor as it is not associated with any lease or land acquisition, however the reduction of the navigable water area could have significant impacts for user groups of the Shoalhaven River. Indirect impacts will occur as a result of the significant impacts to Greys Beach during the construction of the Nowra Bridge. As per recommendations made for Greys Beach, RMS must consider potential replacement infrastructure to minimise impact to watercraft users during construction of the Nowra Bridge.

· Gateway Park – Council has been preparing a master plan for Gateway Park over a number of years with significant investment made in preparing technical investigations such as flood constraints. The project is currently on hold to ensure that it accurately reflects the Nowra Bridge Project acquisition and construction works.

The landscaping of the closed section of the southbound carriageway of Princes Highway directly adjacent to Gateway Park, must consider the impact to Gateway Park from an access and visual impact perspective. Council would encourage dialogue with RMS in relation to the design of the local road, and the landscaping of the closed section of the Highway.

· Southern Shoalhaven River Foreshore East and West (Scenic Drive and Mavromattes Reserve) – the works will impact the amenity of the foreshore area during construction which may result in reduced use of the public open space. The foreshore area generally will also be impacted at the old Nowra Sailing Club site as detailed above.

During construction of the Nowra Bridge, it is expected that the amenity of the foreshore area will be impacted. There are no suggested management actions to minimise this impact. An opportunity exists to thoughtfully consider integration of the Heritage Bridge with Mavromattes Reserve to ensure the future of the bridge as a public open space is accessible, well utilised, and connects with the foreshore area. It is acknowledged that Section 6.4.1 and 6.7.2 of Appendix I of the exhibited materials addresses this opportunity. This is an important aspect of the proposal to ensure that the impact endured during the construction of the bridge is alleviated by an improved community and social outcome once the project is complete. Council would encourage dialogue with RMS to continue to discuss this opportunity.

· Nowra Aquatic Park – the works will result in reduced accessibility to the Aquatic Park from the Highway and operational impacts (amenity, noise, vibration and acoustic) associated with the ancillary site located on the adjacent Riverhaven Motel site.

An opportunity exists to reduce this impact by establishing a new local road off Hyams Street in accordance with the Nowra Riverfront Leisure and Entertainment Precinct. The concept prepared by RMS retains Scenic Drive in its current location with limited access, left in and left out only. The new local road would provide improved and safe access to the foreshore area to the west of the Highway. As mentioned previously, RMS should consider constructing a car park to the rear of the Aquatic Park for use during construction and consider dedicating the infrastructure to Council once the construction is complete. This car park will need to be in addition to the 120-spaces to be replaced as a result of the impact to the triangle site north of Shoalhaven Entertainment Centre.

· Harry Sawkins Park – the works will impact the park as a result of the realignment and widening of the highway. The acquisition and realignment / widening of the Princes Highway will result in a reduced overall area, removal of the significant native trees which provide visual buffer and improved amenity, and encroachment of the existing skate park on the southern side of Harry Sawkins Park.

Appendix I of the exhibited material does not address any management of impacts on Harry Sawkins Park. Appendix G (Urban Design and Landscape Character and Visual Impact Assessment) identifies that the length of Harry Sawkins Park will be heavily landscaped with native vegetation to compensate for the loss of the existing significant vegetation. Reducing the width of the southern landscaping buffer may need to be considered in order to reduce the impact on the existing skate park. Any installation of native trees should be of a considerable size in order to maintain some level of visual buffer and amenity within Harry Sawkins Park. Council would encourage dialogue with RMS to continue to discuss the detail design of this section of the project. Any potential damage or loss to this infrastructure must be suitable addressed and replaced by RMS in consultation with Council.

Other issues have been identified following a review of the exhibited materials, these are summarised below:

· Appendix I (Socio-economic Impact Assessment) does not relate to Council’s Community Infrastructure Strategic Plan as the relevant guiding document to social infrastructure, it relates to the rescinded Public Open Space Plan. The study will need to be revised to ensure that it addresses Council’s adopted strategy. The report also incorrectly refers to the Bicentennial Memorial as being removed for restoration, this should refer to the flood boat which is also of heritage significance. The Bicentennial Memorial remains in place at the current Moorhouse Park location and will need to be relocated as a result of the works. The error within the report will need to be amended.

Other Comments from Council Staff

Business and Property Manager

In a letter dated 15 August 2018 the Roads and Maritime Services (RMS) advised Council about acquisitions of Council owned land as well as proposals to occupy various parcels of Council owned land during the construction phase of the Nowra Bridge project (the acquisitions and proposed lease/licence areas were explained to Council at a briefing on 30 August 2018 and copies of plans provided by RMS have also been provided in the Information Folder).

1. The letter serves as notice of the commencement of the minimum six month negotiation period required to be given to property owners under S10A of the Land Acquisition (Just Terms Compensation) At 1991.This is the minimum period for negotiation before the compulsory acquisition process can be pursued.

2. RMS have engaged Walsh & Monaghan, Consultant Valuers, to value lands to be acquired.

3. RMS agree that RMS and Council can jointly instruct the valuers where it is unlikely that the valuations will be contentious and/or disputed.

4. RMS agree that Council may elect to instruct Walsh & Monaghan to value specific properties and in those circumstances, RMS will instruct valuers other than Walsh & Monaghan.

5. There is insufficient detail about proposals to occupy Council land ie length of occupation, purpose of occupying the land, plans to provide community access to areas such as Nowra Golf Club, Greys Beach and the river foreshore areas.

6. The proposal to occupy the former Visitor Information Centre building and site generally does not take into account Council’s legal obligations in relation to that property.

7. RMS staff have indicated (verbally) a willingness to consider alternative proposals for occupation of various parcels of land eg other Council owned land west of Bridge Road could be used for car parking and a construction compound as could parts of Gateway Park.

8. The proposed acquisition to allow widening on the western side of the Highway threatens to impinge on the amenity currently enjoyed in the administration building. Council is entitled to seek advice from RMS about proposed noise abatement treatments and a commitment which ensures that there is no loss of amenity during the construction phase and thereafter.

9. The proposal to acquire Moorhouse Park does not offer any narrative about the relocation of the Captain Cook Memorial and Flood Boat.

10. There are numerous Council assets in Crown reserves eg. the toilet block on the northern side of the river and west of the bridge.

It is expected that Council and RMS will conduct extensive negotiations about all proposed property transactions and that further reports will be submitted to Council in due course in regard to the outcome of those negotiations which will always be “subject to Council approval”.

Strategic Planning

Council has 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 is 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 regarding the bridge project.

Figure 1 - Nowra Riverfront precinct area – outlined in red

Figure 2 – Sub-precincts within Nowra Riverfront Leisure and Entertainment Precinct

The overall precinct is broken into six (6) sub-precincts (see Figure 2) which each have their individual opportunities, constraints and proposed planning controls.

Council considered a report on the Nowra Riverfront Leisure and Entertainment Precinct Proposed Planning Controls Report at its meeting on 27 March 2018. Council’s project consultants, Studio GL, also briefed Councillors on 22 March 2018.

Council resolved (MIN18.207) on 27 March 2018 as follows:

“1. Receive the attached Nowra Riverfront Entertainment and Leisure Precinct Proposed Planning Controls Report prepared by Studio GL for information and endorse it being placed on public exhibition for a minimum period of 28 days to enable community comment.

2. During the exhibition period, directly consult with NSW Roads and Maritime Services in relation to the Nowra Bridge Project.

3. Consider a further report following the exhibition of the Nowra Riverfront Entertainment and Leisure Precinct Proposed Planning Controls Report that details any comments received, with a view to proceeding to: prepare a Planning Proposal for submission for initial Gateway determination to revise relevant Local Environmental Plan provisions; and a supporting Area Specific Chapter to be inserted in Shoalhaven Development Control Plan 2014.

4. Receive a further report on the insurance options for the former Nowra Sailing Club site.”

The Nowra Riverfront Entertainment and Leisure Precinct proposed planning controls package was publicly exhibited from 25 April to 25 May 2018 (inclusive) and included the following documents:

· Strategic Direction: Review and Analysis report

· Proposed Planning Controls Report

· Explanatory Statement.

A total of fourteen (14) submissions were received during the submission, including 1 from NSW Roads and Maritime Services (RMS).

Council staff notified RMS of the public exhibition period, and copies of the draft package were provided to help assess the compatibility of the Nowra Bridge project with the package. In response to Council’s notification, RMS provided a submission on 25 June 2018. The contents of which are summarised below:

· It is understood that the reports identify possible changes to Shoalhaven LEP 2014 in terms of zoning, heights and floor space ratios (FSR). It also recommends several design controls that could be incorporated into a future amendment to the DCP.

· The works currently being undertaken by RMS for the Nowra Bridge project has the potential to impact upon the smaller catchments that the Proposed Planning Control (Draft) prepared by Studio GL has identified (i.e. Scenic Drive Precinct, Wharf Road Precinct, Pleasant Way/Graham Lodge Precinct and Bridge Road Precinct).

· RMS is currently preparing the environmental assessment for the Nowra Bridge project. This will contain more details on the preferred option having regard for community feedback, additional design works undertaken, etc. RMS anticipates that this will be placed on public exhibition in late 2018;

· It is important that the location/alignment for the Princes Highway and its intersections with both Pleasant Way and Bridge Road in Nowra Riverfront Entertainment and Leisure Precinct package align with the latest design work RMS is undertaking.

· At this time the exhibited preferred option for the RMS Nowra Bridge project is based on concept designs. RMS believes that further detailed design work is required before certainty on the future Princes Highway road alignment and intersection locations at both Pleasant Way and Bridge Street can be provided. The detailed design that is required includes, but is not limited to, more detailed investigation of constraints such as utilities and geotechnical issues which may impact on the future road alignment and required setbacks to enable future RMS works.

· The indicative future road location and alignment for the Princes Highway as detailed in the Proposed Planning Control report is not the same as the RMS preferred option that has been publicly exhibited by the RMS for the Nowra Bridge project.

· The Proposed Planning Control report has identified the area south of the Bridge Road and Pleasant Way/Graham Lodge Precinct as no change, however the Nowra Bridge project preferred option identifies a new intersection for Pleasant Way and the Princes Highway on the eastern side of the Princes Highway.

Staff Comment

A report to Council’s Development Committee September 2018 Meeting considers the submissions made during the public exhibition.

It is noted that significant changes will be required to the Bridge Road and Scenic Drive sub-precincts because of the RMS concept design and the land acquisition required to construct the new bridge crossing, realignment of Princes Highway and intersection treatments. These sub-precincts will need to be deferred from the next stage of preparing a Planning Proposal (PP) and Development Control Plan (DCP) in the interim and until such time as the detailed design of Nowra Bridge project is available. This will enable a full understanding of the remaining land after acquisition, to undertake site testing of potential developments.

The staff recommendation in this report recommends that the Bridge Road and Scenic Drive sub-precincts include additional text to note that the future development of these sub-precincts will be subject to additional investigation once the detailed design of the Nowra Bridge project is complete. The Planning Proposal and DCP Chapter for this area will be adjusted to reflect the latest Concept Design for the Nowra Bridge Project.

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 its 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 - given the proposed acquisition area, there is significant impact on the possible development of this area west of the bridge alignment;

· 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).

Civic Precinct

The proposed bridge alignment appears to significantly impact the norther portion of the Civic Precinct and Hotel site (i.e. Council Administration Building, Shoalhaven Entertainment Centre, Harry Sawkins Park and surrounding car parking areas). Shoalhaven Development Control Plan (DCP) 2014 – Chapter N7: Nowra Hotel Site and Civic Precinct currently provides controls for this gateway site. The site is considered ideal for development to provide a defined entrance or gateway to Nowra. The DCP Chapter N7 and Shoalhaven Local Environmental Plan (LEP) 2014 provides a maximum height of buildings of 28 metres for the northern portion of this site and 25 metres and 16 metres for the remainder of this site.

The proposed bridge significant impacts on the development potential of this site and the future of this site will be reviewed through the Shoalhaven Riverfront Leisure and Recreation Precinct Study discussed above.

Figure 2 – Shoalhaven DCP 2014 Chapter N7: Nowra Hotel Site and Civic Precinct

Historic Truss Bridge

The Nowra Bridge Project: Statement of Heritage Impact report attached to the REF identifies the need for an Interpretation Strategy be prepared.

Council supports the preparation of this strategy, the conservation of the historic truss bridge and the proposed pedestrian walkway and cycleway on the truss bridge. The strategy and design of this pedestrian cycle link should create a point of tourists and pedestrians generally. This would be an opportunity to provide interpretative information about the historic bridge, other heritage items nearby, the history of Shoalhaven River including flood events, the former Sailing Club and wharf.

Economic Development Manager

However out of the construction assets to be put into place by the construction contractor there may be some residual assets that could enhance some of Council’s longer term projects:

· Greys Beach - any barge loading facility may be suited as a wharf frontage for craft;

· Land between Nowra pool and Hyams St – this area within the masterplan may be suited as carparking for construction workers and form part of the precinct outcome going forward; and

· Gateway Park – with a new road to be constructed through this area, cannot elements of “park” be left as part of the rehab process should this area be used as part of the construction zone.

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.

There is no RMS requirement nor any real time available to seek public comment on Council’s submission however if this was very important to Councillors a suitable resolution would be to add the following as a fourth point to the above recommendation.

“Seek public feedback, in a manner to be determined by the General Manager, on the submission before finalising it and lodging it with the RMS”.

Policy Implications

N/A.

Financial Implications

A considerable amount of Council land and several key council assets will be impacted.

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 Identity of risks to Council has not been formalised at this time. There will be further reports to Council as the project evolves and more detail is available.

Strategy and Assets Committee – Tuesday 18 September 2018

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SA18.224 Crown Land Management Act 2016

HPERM Ref: D18/305448

Group: Assets & Works Group

Section: Business & Property

Purpose / Summary

This report provides the Committee with an opportunity to consider delegating authority to the General Manager to make submissions to the Minister responsible for administration of the Crown Lands Management Act 2016 in relation to (a) the classification of specific Crown reserves as operational land, (b) the categorisation of specific Crown reserves which have been classified as community land, and (c) proposed changes of reserve purpose(s).

Recommendation (Item to be determined under delegated authority)

That the General Manager be authorised to make submissions to the Minister responsible for administration of the Crown Lands Management Act 2016 in relation to (a) the classification of specific Crown reserves as operational land, (b) the categorisation of specific Crown reserves which have been classified as community land, and (c) proposed changes of reserve purpose(s).

Options

1. Adopt the recommendation.

Implications: This will streamline the process of determining the classification and categorisation of Crown reserves as well as the relevant reserve purpose(s) as a result of the legislative reform in the Crown Land Management Act 2016.

2. Not adopt the recommendation.

Implications: The status quo will be maintained which means that every decision regarding the classification and catgeorisation of Crown reserves will have to be made by Council.

Background

The Crown Land Management Act 2016 (the CLM Act) was assented to on 14 November and came into force 1 July 2018.

The CLM Act authorises the management of Crown land by local councils under the provisions of the Local Government Act 1993 even though the legislation retains broad and general powers for the Minister for Lands and Forestry to influence that management.

Key Issues

Whilst there are many elements to the reform, in essence, there are four (4) major issues arising out of the CLM Act:

1. From commencement of the CLM Act, Councils will manage Crown land as public land under the provisions of the Local Government Act 1993. Plans of management have to be prepared for every reserve and the legislation provides a transition period of three (3) years for this to happen.

2. Each parcel of Crown land must be classified under the Local Government Act 1993 and every parcel of land classified as “community” land must be categorised as one or more of the following: natural area, general community use, park, sportsground, area of cultural significance. The natural area category has a subset comprising foreshore, watercourse, bushland, escarpment and wetland.

3. Crown Land Negotiation Programme – aims to provide an opportunity for the strategic assessment of Crown land in local government areas and, through negotiation involving the NSW State Government, Council and local Aboriginal Land Councils, have land transferred to Council or the Land Council. The programme aims to deliver local ownership of Crown land to benefit local communities, a reduction in red tape and regulatory burdens on local government, more efficient and streamlined management of public land, and recognition of the importance of land to Aboriginal people and to support spiritual, cultural, environmental and economic benefits for Aboriginal people.

4. Each Council must employ or engage a Native Title manager to ensure that the Council’s dealings with the relevant land (Crown land irrespective of whether or not it is reserved, dedicated or vested in Council) comply with any applicable provisions of the native title legislation.

The Local Government Act 1993 and Public Land Management

The Local Government Act 1993 provides for the management of public land and the classification of such land as either “community” land or “operational” land.

Classification as community land reflects the importance of the land to the community because of its use and/or its special features. Community land is typically a “public reserve” type asset such as a sportsfield, showground, public park, community hall or natural area.

The majority of Crown reserves are to be managed as if they are community land under the provisions of the Local Government Act 1993 which includes but is not limited to the following specific requirements/prohibitions:

· community land cannot be sold;

· community land cannot be leased, licensed or have the creation of any other estate over the land for greater than 21 years;

· community land can only be leased or licensed subject to restrictions outlined in Part 2 Division 2 of Chapter 6 of the Local Government Act 1993 which deals with the use and management of community land; and

· community land must have a plan of management.

The requirement to adopt a Local Government Act 1993 compliant plan of management will be phased in over three (3) years from the commencement of the CLM Act.

The classification of Crown land as “operational” land requires the consent of the Minister and councils are obliged to seek approval from Crown Lands about the initial categorisation of each Crown reserve and any change of reserve purpose(s).

The process for all of this work is to engage with Crown Lands through a portal on the Crown Lands website. To simplify the process it is proposed that the General Manager be authorised to make submissions to Crown Lands without having to seek a Council resolution for each and every submission.

As soon as this initial work is completed and all approvals are in place, preparation of plans of management under the Local Government Act can be prepared and review of the current generic plans of management can be undertaken.

Crown Reserve Use and Purpose

The use of a Crown reserve is limited by the purpose(s) for which the land is reserved or dedicated and any other permissible use(s) under the CLM Act or other Act. Use of Crown land generally must be consistent with or incidental or ancillary to the reserve purpose(s).

Management of Crown land under the Local Government Act 1993 – Additional Considerations Provided by the Crown Land Management Act 2016

Council Crown Land Managers must conform to legal obligations for the management of Crown reserves provided by the CLM Act despite any other provision of the Local Government Act 1993. These additional considerations are summarised as follows:

· Crown reserves can only be classified “operational” with Ministerial consent;

· A category assigned to community land must closely relate to the reserve purpose (S3.23(3));

· The Minister has to be notified of any proposed categorisation as soon as practical (S3.23(2)) and has to give consent to any plan of management that would alter the categorisation of the land if it would otherwise require an “additional purpose” (S3.23(7)(d));

· The Minister can require alteration of an initial category and cannot give consent to a subsequent alteration if it is considered that the alteration is likely to adversely impact the use of the land for its reserve purpose;

· Council must obtain the consent of the Minister to the sale of Crown land;

· Council must comply with any conditions of any appointment instrument; and

· Council must comply with any Crown land management rule established by the Minister to influence the management of Crown reserves.

Financial Implications

The broader implications for Shoalhaven City Council as a result of this legislative reform are significant.

It has been estimated that the cost of complying with the legisaltion in terms of the preparation of plans of management might cost $1.3M over the three (3) years which commenced 1 July 2018. The State Government has advised Council it will receive $78,444 as an assistance grant to help defray this cost.

Whilst there has been no specific allocation in the current budget for this work, requests for funding in future budgets will be submitted for consideration as part of the budget process. Any requirement for specific funding during this current financial year will be met within operational budgets and if that is not available, consideration will be given to a request for extra budgetary funding ona case by case basis.

Strategy and Assets Committee – Tuesday 18 September 2018

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SA18.226 Proposed Licence to Berry Riding Club Inc

HPERM Ref: D18/260965

Group: Assets & Works Group

Section: Business & Property

Attachments: 1. Site Plan ⇩

2. Subsidy Matrix ⇩

Purpose / Summary

This report provides Council with an opportunity to consider approval of a licence agreement with Berry Riding Club Incorporated over Lot 6 DP1188080 Schofields Lane Berry known as the Shoalhaven Equestrian Centre.

Recommendation

That Council resolves to:

1. Enter into a 5 year licence agreement over Lot 6 DP 1188080 at Schofields Lane Berry with a 5 year option period with Berry Riding Club Incorporated commencing at an annual rent of $10,702.84 + GST with annual CPI increases.

2. Approve the allocation of rent received under the licence agreement into the Property Reserve Restricted Asset Account.

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

Options

1. Resolve as Recommended

Implications: Council will receive an annual rent as determined under the “rental subsidy framework” per the Occupation of Council owned and Managed Land Policy and secure a long term tenant.

2. Not adopt the Recommendation and if the offer by Berry Riding Club is accepted, resolve along the following lines:

Enter into a 5 year Licence Agreement over Lot 6 DP1188080 Schofields Lane Berry with a 5 year option period with Berry Riding Club Incorporated commencing at an annual rent of $3,000.00 + GST with annual CPI increases as offered by Berry Riding Club.

Background

Berry Riding Club (BRC) has occupied approximately 3ha of the Council owned 35ha property between Schofields and Andersons Lanes at Berry (the property has frontage to the highway) pursuant to a licence agreement which commenced 1 December 2015 due to the original Riding Club grounds at North Street Berry being acquired by RMS for works on the Berry bypass.

Council has completed building works on the property in accordance with the Shoalhaven Equestrian Centre Master Plan in the way of:

· Newly constructed carpark;

· 8 x 12m Storage shed with double roller doors;

· 8 x 12m Spectator viewing platform;

· Two equestrian arenas; and

· Boundary landscaping.

Berry Riding Club now wishes to enter into a licence agreement for the whole of the property with a vision to create, in addition to the current utilisation, a cross country course (subject to DA approval).

In accordance with Council’s “Occupation of Council Owned and Managed Land“ policy, a rental valuation was obtained from independent valuers Walsh & Monaghan, who assessed the market rental for the proposed licence at $32,500.00 per annum + GST.

Based on the information received from Berry Riding Club in its proposal document and using Council’s rental subsidy matrix (see Attachment 2), Berry Riding Club qualifies for a rental subsidy of 68.18%, which means that the annual rental can be reduced to $10,702.84 per annum + GST with Council’s approval.

Notwithstanding the above, Berry Riding Club has offered $3,000 per annum + GST for the occupation of the total 35 ha where currently it pays $677.82 per annum + GST for 3ha.

Reference Schedule

Item 1	Licensor:	The Council of the City of Shoalhaven
Item 1	Address:	Bridge Road Nowra
Item 2	Licensee:	Berry Riding Club Incorporated
Item 2	Address:	445 Coolangatta Road, Berry NSW 2535
Item 3	Description of property:	Lot 6 DP 1188080 – 39 Schofields Lane Berry
Item 4	A. Licence period:	5 years
	B. Commencing date:	1 May 2018
	C. Terminating date:	30 April 2023
Item 5	Licence fee:	$10,702.84 per annum plus GST payable in six monthly instalments upon invoice
Item 6		Deliberately left blank
Item 7	Fee review dates:	On each anniversary of the commencing date.
Item 7B	Fee review method	In accordance with CPI
Item 8A	Portion of licensees outgoings:	100%
Item 8B	Licensees outgoings:	(a) rates and other charges imposed by any authority; (b) Water and Sewer Usage charges (c) repair, maintenance and redecoration if required. (d) Garbage Charges (e) the cost of supplying, maintaining, repairing and renovating any services to the Berry Riding Club building, the property or the land and upgrading them to comply with all laws and requirements;
Item 9	Permitted use:	Riding and Equestrian events, associated equipment storage, grazing and Community Events
Item 10	Limit of liability under insurance:	$20 Million
Item 11	Option periods:	5 years
Item 12	Permitted Hours:	As per Development Consent
Item 13	Redecoration Dates:	Not Applicable

Community Engagement

This matter is considered a low Impact issue as detailed in Council’s Community Engagement Policy and Handbook.

In accordance with Section 47 of the Local Government Act, a public notice in relation to the proposed licence was attached to the property entrance gate and advertisements placed in the South Coast Register. Adjoining property owners have also been notified.

One Submission was received which mainly raised concerns relating to the original Development Application but also included the following concerns:

Issue	My family has waited 3 years for Berry Riding Club to remove 2 large felled Eucalyptus trees from our property. If Berry Riding Club has $10,000 to spend on renting land from SCC then they have $10,000 to HONOUR their previous commitment to my family and remove these felled trees from our property.
Council response	This is a private matter for Berry Riding Club to address these concerns with the Resident direct.
Issue	My Internal back fence damaged by fallen conifer from SCC land from recent storm We have cut up the pine on our side, but the fence is still damaged. PLEASE ADVISE WHEN THE DAMAGE WILL BE FULLY REPAIRED & WHO IS PAYING FOR IT.
Council response	Berry Riding Club is currently undertaking repairs to the fence.
Issue	Please also note that there is a conifer in the corner of the SCC/ BRC grounds that is dead and in danger of falling onto my fence and possibly the overhead electricity cables along the Princes Highway. I am at risk of my fence being damaged if it falls and losing my horses onto the Princes Highway. Please advise what action will be taken by SCC or BRC regarding this dead tree.
Council response	Berry Riding Club is currently awaiting an inspection by Council’s Tree Management Officer.
Issue	There is no internal boundary fence between the Council Land that is being leased between my property and Andersons Lane.
Council response	Council has requested survey work and fencing quotes and will contribute 50% of the fencing costs.
Issue	Who is going to pay for damage to our external boundary fence by the previous tenant.
Council response	Council will not be responsible for any alleged damage by a former tenant who vacated the property in September 2016.

A multi-response letter will be sent to the Resident addressing all concerns raised. In the circumstances, the proposal to enter into this agreement with the Berry Riding Club should not be prejudiced on any of the issues raised in this submission.

Strategy and Assets Committee – Tuesday 18 September 2018

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SA18.228 Holiday Haven Tourist Parks - End of Year Report

HPERM Ref: D18/190107

Group: Assets & Works Group

Section: Business & Property

Purpose / Summary

Holiday Haven is to report to Council, biannually, on its financial operations, including the capital and strategic plan. The report is to include any business model changes that have driven any change to the operations.

Recommendation (Item to be determined under delegated authority)

The Holiday Haven Tourist Parks – End of Year Report be received for information with Council noting the following highlights;

1. Tourist park income is up 4.5% on last year and exceeded total budgeted income by 1%

2. Overall expenses were up on the previous year by 6.4% and up on budget by 2.1%.

3. Holiday Haven consolidated park occupancy increased 2.2% on 16/17.

4. Holiday Haven net operating result for FY 17/18 was 2.4% below budget and 1.5% above 16/17 results.

Options

1. The report be received.

Implications: Holiday Haven meets its reporting requirements in relation to Council’s Holiday Haven group.

2. Further information regarding the Annual Financial Statements be requested.

Implications: Staff will prepare a further report to provide any information that is required.

3. That Council Committee defer a determination/decision on the matter pending discussion at a Councillor briefing.

Background

Council requested that Holiday Haven provide a status report on Holiday Haven operations covering how the business is tracking in comparison to its strategic plan, operational plan and capital expense plan. The report to also include commentary on business model changes that have driven any substantial changes to operations.

Key Financial Results

July 2017 – June 2018

Operating Profit and Loss compared to Budget and last year:

Income

Tourist park income is up 4.5% on last year and exceeded total budgeted income by 1%.

a) User charges and fees – 11 parks achieved growth on last year apart from Shoalhaven Heads. There were 23 holiday vans removed from Huskisson White Sands. The loss of income from these vans in FY17/18 was not anticipated and amounted to over $55,000.

b) Other Revenues – this is rental income from Park Managers’ residences which was on par with budget. Additional income has been realised with the disposal of holiday vans at Culburra Beach.

c) Internal revenue is income received from the parks for lease payments for new cabins and an internal administration fee of 6.5% of expenses charged to each park. This was on par with budget.

d) The 4.5% increase in income was achieved through a number of factors including the annual fees and charges set through Council’s budget process and as a result of marketing initiatives which offered incentives aimed at boosting occupancy levels and revenues. The impact of the rate increases in the income increase is difficult to separate out.

Expenditure

Overall expenses were up on the previous year by 6.4% and up on budget by 2.1%.

a) Employee benefits and on costs - additional staff accounted for additional costs that were not budgeted (Admin Assistant and OHS Officer). These positions were identified in the KPMG review of Holiday Haven in 2016.

Materials and contracts – materials were marginally down on budget. There were abnormal expenses incurred with resolving park issues at Huskisson Beach due to park management issues. Furthermore, two water leakages were investigated and resolved which have realised an increase in water expenses by more than 19%. Water leaks from old and failing infrastructure are intrinsically difficult to locate across Holiday Havens which are located in mostly sandy locations.

b) Depreciation, amortisation and impairment – on par with budget and 14.8% up on the previous year.

c) Other expenses – subscriptions, land rates, and other expenses are 18.4% below budget. There have been savings in some operating expenses as tighter controls have been put in place.

d) Internal expenses – these are cabin lease fees and are on par with performance and the previous year.

Occupancy

Holiday Haven consolidated park occupancy increased 2.2% on 16/17.

· Currently Holiday Haven operates 300 cabins across 12 parks

· Cabin occupancy finished at 45.7%, which is up 4.4% on last year. Average available rate, excluding discounts, was $165.39, 3% up on the prior year.

· There are 1409 powered and unpowered sites across 12 parks with an average occupancy of 29.4% and an average yield of $46.47 per occupied site. This represents a 7% growth in rate on the same period for 16/17.

· Holiday van ownerships are down 4% on budget, amounting to $288K as vans have been removed due to the changing nature of the business.

Net Operating Result

Holiday Haven net operating result for FY 17/18 was 2.4% below budget but 1.5% above 16/17 results. Extraordinary expenses due to water leakages in Shoalhaven Heads and Bendalong Point were incurred but not budgeted. Gross Operating Profit for the year was 23.6% compared to a budget of 24.4%.

Capital Expense Plan

Under an agreement with NSW Crown Lands, capital funds of approximately $5million annually is invested back into the Holiday Haven parks. These funds are provided to maintain the reserves and keep infrastructure, accommodation and attractions up to date in order to maintain market share and profit levels. These capital funds come partially from the profits of the parks (approximately $3m) and the rest is borrowed.

With an original budget of $5.11M, total expenditure to June amounted to $5.03M for capital and related expenses.

Major capital projects undertaken during the past twelve (12) months have been:

1. Lake Tabourie Pool	$687K
2. Huskisson Beach Amenities & Camp Kitchen	$409K
3. Huskisson White Sands Drive Through Sites	$408K
4. Shoalhaven Heads Siteworks / Amenity Upgrades	$179K
5. Bendalong Recreation / Road / Siteworks	$162K
6. Huskisson Beach New Cabins/Ensuites	$115K
7. New Cabin at Ulladulla	$106K
8. Lake Conjola Ensuites	$ 90K
9. Bendalong Amenities & Camp Kitchen	$ 84K
10. Cabin Maintenance across all parks	$700K

The remaining capital budget was allocated and spent on siteworks and associated capital costs.

Business Operation Model

Holiday Haven’s operational structure has expanded in line with the recommendations to Council contained in the KPMG Service Revenue of August 2016. The existing structure was altered to add a dedicated Marketing role, a Finance Manager, a Marketing Assistant / Booking System Administrator and a Works & Project Officer. Additionally, a lateral transfer created an Operations Officer role. The new structure has been in place for over six months and has taken the business operation to a new level. The works, finance, reporting and marketing functions have changed significantly, and the group (and Council) will benefit financially in future. Further to this the continuing development of the NewBook reservation management system continues to provide better and more timely reporting and business audit functions.

Market Forecast

Holiday Haven operates 300 cabins and more than 1409 powered and unpowered sites across 12 parks as well as having approximately 1300 holiday vans. Collectively, this generates in excess of $24M in revenue. Cabins achieved an average annual occupancy of 45.7% while sites achieved 29.4% in occupancy. This is an increase of 4.4% and 3.2% respectively on 2016/17 results. Across all parks, consolidated occupancy was 31.8%, up 2.1% on 16/17. Redevelopment of the brand and the website, together with a comprehensive marketing campaign, is expected to achieve an increase in occupancy of an additional 3%, generating a further $1M in revenue in FY18/19.

Community Engagement

N/A as this is basically an “information report”.

Financial Implications

The first 6 months of the financial year 17/18 were soft in terms of occupancy however this was counteracted by an excellent 3^rd quarter. Significant unbudgeted park expenses (water leakages, plumbing and capital works at Huskisson Beach) have absorbed time and labour and consumed funds which were previously allocated to other projects. This has delayed other projects until the following year. Capital expenditure is concentrated such that park assets can be maintained and updated to an appropriate standard, to increase occupancy and achieve growth (market awareness) of the Holiday Haven brand.

Strategy and Assets Committee – Tuesday 18 September 2018

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SA18.229 Proposed Residential Subdivision - Mundamia Urban Release Area - George Evans and Jonsson Roads Mundamia (SSD7169)

DA. No: 3A08/1010-02

HPERM Ref: D18/202447

Group: Planning Environment & Development Group

Section: Development Services

Attachments: 1. Attachment 1 Plan of Subdivision (Rev 17) ⇩

2. Attachment 2 TDG Traffic assessment (under separate cover) ⇨

3. Attachment 3 Letter of Offer June 2018 ⇩

4. Attachment 4 - Summary of Key Dates ⇩

5. Attachment 5 Cost Estimates by APS ⇩

6. Attachment 6 Traffic Calming Devices - Designs by APS (under separate cover) ⇨

Description of Development: Proposed Residential Subdivision

Owner: Jemalong Mundamia Pty Ltd

Applicant: Allen Price & Scarratts

Purpose / Reason for consideration by Council

This report has been prepared to enable Council to consider a request for ‘in principle’ support to enter into a Voluntary Planning Agreement (VPA), as per the draft consent issued by the NSW Department of Planning and Environment.

This VPA will result in the financial contribution by Council to the cost of the construction of traffic calming devices associated with this proposed subdivision. The Department and the applicant for SSD7169 have requested Council show its support to enter a VPA for contributions towards the cost of traffic calming devices, including:

· Roundabout (additional costs) at intersection of road 1 and George Evans Road. Council to pay 58% of the additional costs to provide the roundabout

· Roundabout (additional costs) at road 14 and Jonsson Road. Council to pay 18% of the additional costs to provide the roundabout

· Entry threshold (additional costs) at the intersection of Jonsson Road and Road 16, Council to pay 100% of the additional costs to provide the entry threshold.

Refer to Figure 7 in this report.

Given the extent of financial contribution sought, (Council’s share is calculated to be $135,979.26 based on the proportions determined by the Department and cost information provided by the applicant), this is a matter for Council’s consideration.

The site is within the Mundamia Urban Release Area, as per the adopted Chapter NB1 of Shoalhaven Development Control Plan 2014 (SDCP 2014).

Recommendation (Item to be determined under delegated authority)

That Council:

1. Provide ‘in-principle’ support to enter into a Voluntary Planning Agreement as per the draft consent issued by the NSW Department of Planning and Environment;

2. Upon determination of the application, by the NSW Department of Planning and Environment, process the draft Voluntary Planning Agreement as per legislative requirements (the draft VPA needs to be reported to Council and exhibited); and

3. Supports ‘in principle’ the request for financial contribution to the construction of traffic calming devices associated with this proposed subdivision including allocation of the necessary funds for contribution to the necessary traffic calming devices to that extent Council confirms its share (calculated to be $135,979.26) will be payable upon completion of the works as requested by the applicant.

Options

1. Council may choose to support the request for financial contribution to the construction of traffic calming devices associated with this proposed subdivision, and subsequently agree to entering into a VPA with the developer, Jemalong Mundamia Pty Ltd.

Implications:

The main implication is one of financial commitment, but also precedent. Future requests for financial contributions may be sought where a developer argues a large community benefit exists for some form of infrastructure associated with the proposed development.

The applicant emphasises that the relevant Section 7.11 Development Contribution (formerly Section 94) projects have been set and roundabouts had been excluded from the final project listings.

2. Council may choose not to support the request for financial contribution to the construction of traffic calming devices associated with this proposed subdivision, and not agree to entering into a VPA with the developer.

Implications:

This development application is nearing completion of assessment and the developer does not wish to see further delays.

Location / Subject Land

The land is located to the west of Nowra.

Figure 1 – Location Map

The land is located to the north-west of the University of Wollongong, Shoalhaven campus, within the Mundamia Urban Release Area. approximately 5km to the West of Nowra.

Figure 2 – locality map

The subject land is legally described as Lot 30 DP1198692 Jonsson Road, Mundamia.

Figure 3 – Site with aerial overlay

Background

Proposed Development

The application is for a residential subdivision of land which is being assessed by the Department of Planning and Environment. The application was originally a Major Project (MP08_0141) which transitioned to a State Significant Development (SSD7169). The application was lodged with the Department in 2008. The assessment is nearing completion, draft conditions have been issued.

The proposal includes a 309-lot residential subdivision comprised of 288 residential lots, 12 lots nominated as ‘dual occupancy’ lots, 8 ‘multi-dwelling’ lots, 1 commercial lot, and open space and drainage reserves, in 11 stages - Attachment 1.

Figure 4 - Proposed Subdivision – Drawing Number 25489-11 Revision 17 – dated 19.07.2017

History

Development of the Mundamia Urban Release Area (URA) has been under consideration for several years, in line with Council’s strategic plans for the Nowra / Bomaderry area.

The Mundamia URA was rezoned following on from the Nowra-Bomaderry Structure Plan, identified as Area 5. The purpose of the investigation areas identified in the Nowra Bomaderry Structure Plan was:

1) To review the investigation area to define areas suitable for future urban development.

2) Development of notional plans and appropriate zonings for these areas to work towards sustainable development outcomes and the achievement of the environmental, social and economic aims of the plan, and

3) Development of generic guidelines, objectives and character statements along with key issues to be addressed in any subsequent implementation plan.

Development of the Mundamia URA is necessary to ensure future land releases are available for the increasing Shoalhaven population.

The current application has been under assessment by the Department of Planning and Environment since 2008. Determination of the current application, by the Department is understood to be imminent, pending in principle support and agreement by the applicant and Council to enter into a VPA to facilitate provision of necessary traffic calming devices.

Mundamia Urban Release Area / Shoalhaven Development Control Plan (SDCP) 2014 Chapter NB1

Consistent with the requirements of Part 6 of the Shoalhaven LEP2014, the Shoalhaven DCP 2014 Chapter NB1: Mundamia Urban Release Area sets out the controls for this URA. The Mundamia URA is forecast to be primarily an urban residential development with a mixture of residential opportunities.

Figure 5 - Shoalhaven Development Control Plan Chapter NB 1 -Mundamia Urban Release Area

One of the objectives of SDCP2014 Chapter NB1 is to create a sense of arrival/neighbourhood with attractive street presentation, including emphasis on the attractive entrance/gateway treatment. Figure 3 shows the extent of the Mundamia URA. The envisaged treatment includes roundabouts at some of the key intersections, as shown in the Figure 5 below. Note: indicative location of roundabouts was included in the DCP.

Figure 6 - Shoalhaven Development Control Plan Chapter NB1

Mundamia Urban Release Area – Gateway Streetscape Detail.

Shoalhaven Contributions Plan 2010

A VPA is required because the provision of two (2) additional roundabouts and an additional entry (speed) threshold sits outside the adopted projects in the Shoalhaven Contributions Plan 2010 for this area. The Contributions Plan only provided for the minimum (1 roundabout) at the central intersection of Road 1 / Road 14 where the commercial and community precinct as identified in the DCP2014.

The detailed traffic assessment of the applicant’s (Jemalong) subdivision found that additional speed control facilities were warranted in accordance with guidelines due to the 1.2km of collector road traversing through the middle of the combined developments, and the prevalence of through traffic due to the existing Thomson’s Point Reserve which is popular local walking and climbing location. Attachment 2

The Department has accepted the need for these additional facilities however considers that whilst the DCP provides for multiple developments, both the applicants (and Council’s potential future development), should both contribute towards the provision of the additional infrastructure, in proportion with the traffic they will theoretically generate.

Issues

Voluntary Planning Agreement (VPA)

The Department has advised Council in the draft consent there will be a condition requiring the applicant to enter a VPA with Council for

· The additional costs of building a roundabout at intersection of road 1 and George Evans Road,

· The additional costs of building a roundabout at road 14 and Jonsson Road,

· The additional costs of building an entry threshold treatment at intersection of Jonsson Road and Road 16

Figure 7– location of traffic calming devices subject of VPA (Roundabouts and threshold devices)

The draft condition recommended by the Department is as follows:

“Within 6 months of the date of this consent the Applicant shall enter into a Voluntary Planning Agreement (VPA) for contributions towards the cost of roundabouts at the intersections of Road One with George Evans Road and Road Fourteen and Road 1 and Road 16 (entry threshold only at this location), consistent with the Letter of Offer dated x and accepted by Council on Y. A copy of the VPA must be provided to the Secretary within 4 weeks of execution.

Comment: Traffic management/contribution issues to be discussed further with Council and Applicant. Council has provided the following alternate condition for discussion:

The Applicant shall design and construct a traffic calming device (e.g. entry threshold) in Road One just north of Road Sixteen, in the form of a ‘flat top road hump”. The flat top road hump threshold shall have a 4m length flat top and all other design parameters, as well as signs and lines, are to be designed in accordance with AS1742.13 for a “flat top hump”. The applicant shall also design and construct all three roundabouts at the intersections of Road One with Georges Evans Road, Road Nine and Road Fourteen. The roundabouts shall be designed generally in accordance with AUSTROADS guidelines with select design parameters suitable for the proposed locations, to Council satisfaction. Details must be shown on the Construction Certificate Drawings.

The draft traffic conditions of Consent from Department of Planning are based on information submitted by the applicant and peer reviews undertaken by TDG and Gennaoui Consulting on behalf of the Department, Attachment 2

Each of the intersections were considered by the Department. Those outside of the Shoalhaven Contributions Plan, have been the subject of further detailed scrutiny to ascertain apportionment between SCC and the applicant, and are the subject of the requested VPA.

Traffic issue	DoPE opinion, based on Consultant’s (TDG) peer review opinion	Comment
Roundabout at intersection of road 1 and George Evans Road	42% to proponent, 58% (of additional costs) to Council	Assumes full completion of the Mundamia URA – note: no other applications now
Roundabout at intersection of road 14 and George Evans Road	82% to proponent, 18% (of additional costs) to Council	Traffic associated with Thompson Point Reserve necessitates SCC contribution
Entry threshold treatment at intersection of Jonsson Road and Road 16	100% (of additional costs) to Council	This is based on existing through traffic to Thompson Point Reserve, not traffic generated by this development.

The preparation of a VPA must comply with the provisions of the Environmental Planning and Assessment Act (EPAA), section 7.4 – 7.7 and Regulations 25B – 25H. This includes the preparation of a detailed legal Agreement, exhibition of that Agreement, specific report to Council and the like. Costs are to be borne by the developer.

Based on a preliminary draft consent, issued by the Department, the applicant submitted an initial letter of offer for a Voluntary Planning Agreement on 15 January 2018, and a second letter of offer on 1 June 2018 - Attachment 3. Since then, additional information has been requested, and submitted, on several occasions. Attachment 4 is a summary of key dates pertaining to the VPA preparation and review.

Council’s share is calculated to be $135,979.26 based on the proportions determined by the Department and cost information provided by the applicant - Attachments 5 & 6.

The applicant is urgently seeking Council’s support for the VPA to enable the application to be determined.

Adjoining Lands in the Mundamia URA / Future Development

The extent of lands included in the Mundamia URA are shown in pink, in Figure 10 below. The land subject of this development application is identified in blue and extends over and beyond the Mundamia URA defined area.

Figure 8 – extent of Mundamia URA

There are 5 landholders included in the Mundamia URA

Land	Owner	Development
Lot 1 DP1226624	Council	Major Project Withdrawn No application
Part of Lot 458 DP1063107 & Part of Lot 473 DP1102909	Nowra Local Aboriginal Land Council	No application
Lot 1 DP568613	A & S Santos	Existing dwelling
Lot 2 DP568613	L White	Existing dwelling
Lot 30 DP1198692	Jemalong Mundamia Pty Ltd	Major Project nearing determination

The traffic consultant has assumed a subdivision over the Council land and part of the Nowra LALC land of 109 lots including 105 residential lots, neighbourhood shops and a community facility, as was identified in MP09-0056. This application was withdrawn. There is no guarantee of such a lot yield.

Figure 9 MP09-0056 Council and NLALC land (Source: SET consultants, 2013)

This plan was Withdrawn, there is no current application over this land)

Whilst there have been expressions of interest in Council’s land, and potential for applications over the Nowra Local Aboriginal Land Council (Nowra LALC) land also, there are no firm proposals now.

The Shoalhaven DCP Chapter NB1 is an indicative guide only. Given the need for future applications to comply with bushfire requirements and the recent Biodiversity Conservation Act, any lot yields shown in the DCP can be considered indicative only.

Alternatively, a VPA could be developed whereby the proponent, Jemalong Mundamia Pty Ltd, could recoup money if/when the Council land is developed in the future.

Planning Assessment

The Application is being assessed by the Department of Planning and Environment. The Department has sought and been provided with Council’s input on numerous occasions during the assessment of this application.

The Department has engaged its own consultants, including traffic and environmental, to review the applicant’s information and submissions. The Department’s assessment has concluded that Council must contribute to 3 of the necessary traffic calming devices relevant to this proposal, based on their consultant’s assessments.

Prior to determination the Department require in principle support from Council to the VPA, for financial contribution to the necessary traffic calming devices, where contribution has been assessed as necessary, by the Department.

Policy Implications

At this point in time, the assessment has not been made public. Nil policy issues identified to date.

Consultation and Community Engagement:

Notification of the development application has been undertaken as part of the assessment, by the Department of Planning. Submissions were received form OEH, RFS and SCC.

Key issues raised include but are not limited to:

· Resolution of Biodiversity Offset Strategy type and number of ecosystem credits;

· Incorporation of NSW RFS recommended conditions;

· Developer contributions;

· Landscaping; and

· Hydrology and ground water at the locality.

The assessment has also identified the need for a VPA.

As mentioned previously, the preparation of a VPA must comply with the provisions of the Environmental Planning and Assessment Act (EPAA), section 7.4 – 7.7 and Regulations 25B – 25H. This includes the preparation of a detailed legal Agreement, exhibition of that Agreement, specific report to Council and the like.

Financial Implications:

This is the core issue for Council. The applicant and Department of Planning and Environment are seeking a commitment from Council towards contributing to road infrastructure deemed necessary because of the proposed subdivision.

The costings relate to the difference of constructing a normal road, and the necessary traffic calming device. For example, there are some costs such as road pavement, kerb and gutter that still must be met by the developer, but it is those costs that provide the higher level of treatment i.e. the difference in cost that is proposed to be apportioned. The percentage of apportionment has been determined by the Department.

Costings for the road infrastructure subject of the VPA include:

Infrastructure	Cost (estimates provided by APS at 23 August 2018)	% to be apportioned to SCC	Cost of difference to be allocated to SCC	comment
Roundabout at intersection of road 1 and George Evans Rd	Additional cost of roundabout $134,526	58%	$78,025.08	The % of apportionment has been determined by the Depart.
Roundabout at intersection of Road 14 and Jonsson Rd	Additional cost of roundabout $99,501	18%	$17,910.18	The % of apportionment has been determined by the Depart.
Threshold treatment at intersection of road 16 and Jonsson Rd	Additional cost of roundabout $40,044	100%	$40,044	The % of apportionment has been determined by the Dept.

Sub-total Council’s Contribution (Cost of difference to allocate to Council) $135,979.26.

Legal Implications

The VPA is to comply with the provisions of the Environmental Planning and Assessment Act, and Regulations.

The VPA is to be registered on the land, thereby binding on and enforceable against, the owner of the land, and future owners, as if that owner had entered into the agreement.

Summary and Conclusion

The applicant and NSW Department of Planning and Environment are seeking a commitment from Council towards contributing to road infrastructure costs of traffic calming devices, deemed necessary by the Department, including:

· Roundabout additional costs at intersection of road 1 and George Evans Road, Council to pay 58%.

· Roundabout additional costs at road 14 and Jonsson Road, Council to pay 18%.

· Entry threshold additional costs at intersection of Jonsson Road and Road 16, Council to pay 100%.

Based on proportions determined by the Department and costs provided by the applicant (dated 23 August 2018) sub-total Council’s contribution (cost of difference to allocate to Council is $135,979.26.

This is the “additional cost” to augment the base road design to accommodate the additional roundabouts and entry threshold. The additional cost is proposed to be share in accordance with proportions determined by the Department, based on theoretical traffic generation from both parcels of development identified in the DCP (Council’s and the applicant’s).

Strategy and Assets Committee – Tuesday 18 September 2018

Page 1

SA18.230 Water rebate drought affected Farmers

HPERM Ref: D18/281564

Group: Shoalhaven Water Group

Section: Water Customer & Business Services

Purpose / Summary

At its Ordinary Meeting on 28 August 2018, Council resolved to receive a report on options available to provide relief to affected farmers. This report addresses Part 5 (c) of the resolution, relating to potential water rebates.

It is proposed that a rebate is made available to eligible farmers for the duration of the drought and that it be administered in a similar manner to that provided by Council to farmers previously during the drought in 2008-9. Whilst the level of assistance is likely to be greater on this occasion in light of the drought severity, the application of that assistance will still provide the necessary signals to encourage efficient water use noting that water restrictions are in place across the wider community.

Detailed regional conditions and the impact of the proposed assistance is submitted for consideration.

Recommendation

That Council

1. Provide upon application a water rebate to customers classified for the purposes of water consumption as rural/agricultural to take effect from 1 October 2018 and for the duration of the drought.

2. The rebate be calculated as a 50% reduction of the water usage charge for the difference between the calculated daily average consumption on a billed account and the daily average consumption of the previous corresponding three periods.

3. This proposal be publicly notified in accordance with Section 356 of the Local Government Act, and a further report be provided following the notification period and review of any written submissions received.

Options

1. Council could choose not to pay a rebate or make changes to the proposed rebate

2. Council can request further information on this issue

Implications: Dependent upon request

Background

NSW continues to experience widespread drought conditions with 100% of the State covered by one of the three drought categories (48% drought affected, 37% in drought and 15% intense drought). The drought has persisted in some NSW regions since October 2017, with dry conditions in the Shoalhaven resulting from low rainfall since March 2017.

In 2013 all jurisdictions (excluding QLD) ceased the practice of issuing a “drought declaration”.

Currently in NSW the Department of Primary Industries (DPI) reports on regional conditions and classifies Local Land Service (LLS) regions into the following categories: intense drought, drought, drought affected, recovering or non-drought conditions.

The table below provides further explanation of those categories.

A number of NSW regions including the South East Region (of which the Shoalhaven is a part) are experiencing intense drought. This means the regions farmers are experiencing a more acute rainfall deficit, low levels of soil moisture, poor pasture and crop production.

In comparison to NSW wide conditions, the South East region drought categories are more severe with 14.2% in intense drought (NSW 12.4%), 58.4% in drought (NSW 54.4%) and 27.4% drought affected (NSW 32.6%), based upon the current DPI Seasonal Update.

DPI update the Combined Drought Indicator (CDI) and mapping of drought conditions at a Parish level on a monthly basis. As depicted on the South East region map below, all parishes in the Shoalhaven region are experiencing intense drought conditions. The detailed index information is available on a Parish basis, as shown on the below map for the parish of Nowra.

Localised drought conditions

Dry conditions continue to be reported in the Shoalhaven and the Drought Management Plan (DMP) was activated to facilitate a constant review of water supply and demand considerations, weather projections and the implementation of water restrictions. Further information on the implementation of water restrictions including REMS supply restrictions was provided in a separate report to the Strategy and Assets Committee in August.

Government Assistance Measures

The Australian Government is supporting farmers through measures including loan schemes, farm household allowances, taxation measures, risk management programs and counselling services.

In 2015 the NSW Government launched its $300 million Drought Strategy focusing on preparedness, improved decision making and targeted support for rural communities. In the NSW Budget 2018 the Government boosted drought assistance by $284 million.

On 30 July 2018 (with then 99% of the State in drought) the NSW Government announced further support for farmers with an additional $500 million Emergency Drought Relief Package, increasing the total drought assistance to more than $1 billion. This assistance includes drought transport subsidies, business concessional loans, interest free loans for primary producers and subsidies on the permanent transfer of stock off a farm.

The Department of Primary Industries will implement this range of assistance measures in consultation and collaboration with Department of Industry, Roads & Maritime Services, NSW Health, Service NSW, Water NSW, Local Land Services, the Department of Premier and Cabinet and NSW Treasury. Varying conditions apply to accessing Government assistance, which is accessible through the Drought Hub on the DPI website.

Council Assistance through consumption based water rebates

Council have previously supported rural/agricultural properties through a water rebate in 2008/2009. That rebate was available on application (with no differentiation as to the type of farmland) and where the criteria for an increased demand of water consumption was met. Owners of other commercial or Community Service Obligation properties did not receive assistance even though some were reliant upon rainfall or impacted by the drought effects. Council should be aware that any assistance provided through a rebate for water supply will provide some rural/agricultural properties with an industry advantage over those properties not connected to potable water supply.

In 2018/19 there are 497 commercial properties in the rural/agricultural land use connected to water supply and sub-categorised as farms for purposes of levying water and sewerage charges. There is no distinction between the type of farm as is the case with rating. This compares to the 855 properties in the rating farmland category.

The 497 properties connected to water are charged for usage at a tariff of $1.70 per kilolitre (this rate also applies to residential properties) or $0.85 per kilolitre for raw water. Only 8 properties are supplied with raw water.

Currently the rural/agricultural properties which benefit from access to reclaimed water also generate a reduction on the demand for potable water supplies. The majority of REMS properties use potable or raw water supplies as part of their operations and would receive assistance upon application where the criteria for increased water consumption was met.

Proposed assistance

Previously the water consumption rebate was only applied where water usage had increased by 1.5 times greater than the daily average of the previous corresponding three periods. It is proposed to remove this factor in order to provide tangible relief to more rural/agricultural properties.

The rebate was calculated as a 50% reduction of the difference between the current daily average consumption (as shown on the quarterly Water Account) and the average water consumption for the previous corresponding three periods. This method of applying assistance is proposed to continue as it is most beneficial in accounting for seasonal influences. The calculation also provides appropriate relief measures in the event that extended drought conditions are experienced in the Shoalhaven.

Community Engagement

It is proposed to publicly notify the Community in accordance with the Local Government Act.

Notification of rebate and application process

Following the proposed notification period and evaluation of submissions, it would be Shoalhaven Water’s intention to write to each customer outlining the details of the water rebate and how the assistance could be obtained and applied as a credit against the Water Account. The application process will be done online for simplicity and for probity contain sufficient information to support the rebate.

Financial Considerations

The 2018/19 budgeted position for the Water Fund may not be significantly impacted by the proposed water rebate however it is stressed that predictions of water usage and weather patterns cannot be accurately undertaken. Any required budget adjustments would be undertaken within the quarterly review process.

In the event of a prolonged period of drought (extending beyond the current financial year), future budgeting will consider the actual level of assistance provided to farmers during 2018/19 in determining the level of ongoing assistance available to farmers.

The amount of the rebate provided as a consequence of this initiative would be identified and reported as a “community service obligation and other assistance measures” item within the 2019/20 Delivery Program & Operational Plan.