Agenda of Strategy and Assets Committee

Minutes of the Strategy and Assets Committee

Meeting Date: Tuesday, 22 January 2019

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

Time: 5.01pm

The following members were present:

Clr John Wells - Chairperson

Clr Amanda Findley

Clr Patricia White

Clr Kaye Gartner

Clr Nina Digiglio

Clr Annette Alldrick

Clr John Levett

Clr Mitchell Pakes

Clr Greg Watson

Clr Bob Proudfoot

Stephen Dunshea – Acting General Manager

Apologies / Leave of Absence

Apologies were received from Clr Kitchener, Clr Guile and Clr Gash.

Confirmation of the Minutes

RESOLVED (Clr Pakes / Clr White) MIN19.8

That the Minutes of the Strategy and Assets Committee held on Tuesday 11 December 2018 be confirmed.

CARRIED

Declarations of Interest

Nil

Mayoral Minutes

Nil

Deputations and Presentations

Nil

Notices of Motion / Questions on Notice

SA19.1 Notice of Motion - Sporting Fields Renovation – Use of Recycled Material

HPERM Ref: D19/9661

Recommendation (Item to be determined under delegated authority)

That

1. A report be prepared for Council identifying the opportunities and costs of incorporating suitable recycled organic product into the top-dressing media used by Council in the repair, restoration and renovation of Council’s sports fields playing surfaces.

2. The report make recommendations with regard to amending and/or modifying current top-dressing practices and media, where considered appropriate.

RESOLVED (Clr Wells / Clr Gartner) MIN19.9

That

2. The report make recommendations with regard to amending and/or modifying current top-dressing practices and media, where considered appropriate.

CARRIED

Reports

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

SA19.2 Ratepayer Advance Kerb & Gutter Construction

HPERM Ref: D18/433030

RECOMMENDATION * (Clr Proudfoot / Clr Pakes)

That:

1. Council enter into a Ratepayers Advance Agreement, executed under the Seal of Council, with:

a. R J & M L Speer of 32 Ridgelands Drive, Sanctuary Point NSW 2540 in respect of Kerb and Gutter construction to the value of $7,330.44 (advance) of which $1,798.32 (excluding GST) is the contribution, $5,532.12 is the loan and the amount to be repaid to the Ratepayer in 5 years at 5% interest per annum is $6,915.15.

b. R J & M L Speer of 34 Ridgelands Drive, Sanctuary Point NSW 2540 in respect of Kerb and Gutter construction to the value of $7,330.44 (advance) of which $1,798.32 (excluding GST) is the contribution, $5,532.12 is the loan and the amount to be repaid to the Ratepayer in 5 years at 5% interest per annum is $6,915.15.

c. D L Mood of 43 Basin View Parade, Basin View (same as postal address) in respect of Kerb and Gutter construction to the value of $7,330.44 (advance) of which $1,798.32 (excluding GST) is the contribution, $5,532.12 is the loan and the amount to be repaid to the Ratepayer in 5 years at 5% interest per annum is $6,915.15.

d. C J Hobbs of 45 Basin View Parade, Basin View in respect of Kerb and Gutter construction to the value of $7,330.44 (advance) of which $1,798.32 (excluding GST) is the contribution, $5,532.12 is the loan and the amount to be repaid to the Ratepayer in 5 years at 5% interest per annum is $6,915.15.

e. The Roman Catholic Church of St Michaels Parish, 25 St George Avenue, Vincentia in respect of Kerb and Gutter construction to the value of $6,001.00 (advance) of which $1,921.00 (excluding GST) is the contribution, $4,080.00 is the loan and the amount to be repaid to the Ratepayer in 5 years at 5% interest per annum is $5,100.00.

f. Rennie Marceline D’Souza, 27 St George Avenue, Vincentia NSW 2540 in respect of Kerb and Gutter construction to the value of $6,071.60 (advance) of which $1,943.60 (excluding GST) is the contribution, $4,128.00 is the loan and the amount to be repaid to the Ratepayer in 5 years at 5% interest per annum is $5,160.00.

g. Marcela Evangeline Biguzas & Moses Raudino, 29 St George Avenue, Vincentia NSW 2540 in respect of Kerb and Gutter construction to the value of $7,413.00 (advance) of which $2,373.00 is the contribution, $5,040.00 is the loan and the amount to be repaid to the Ratepayer in 5 years at 5% interest per annum is $6,300.00.

2. The Common Seal of Council of the City of Shoalhaven be affixed to any documentation required to be sealed, otherwise the General Manager be authorised to sign any documentation necessary to give effect to the resolution.

SA19.3 Classification of Land - Lot 1 DP 1245988 - 4 Kardella Ave Nowra

HPERM Ref: D18/424564

RECOMMENDATION * (Clr Proudfoot / Clr Pakes)

That Council resolve to classify the land described as Lot 1 DP1245988 at 4 Kardella Avenue Nowra as Operational Land.

SA19.4 Land Classification Lots 1452 & 1452 DP1231370 Vincentia

HPERM Ref: D18/433112

RECOMMENDATION * (Clr Proudfoot / Clr Pakes)

That Council resolve to classify the land described as Lot 1451 DP1231370 Horizon Crescent Vincentia & Lot 1452 DP1231370 Halloran Street Vincentia DP 1231370 as Community Land with a sub-category of General Community Use.

SA19.5 Acquisition of Water & Sewer Easement at Lot 76 DP 755907 - 66 Wrights Beach Road, Bream Beach

HPERM Ref: D18/433480

RECOMMENDATION * (Clr Proudfoot / Clr Pakes)

That Council resolve:

1. To compulsorily acquire the following easement for Council infrastructure over Crown land Lot 76 DP 755907, subject to resolving Native Title interests, at compensation determined by the Valuer General:

a. An Easement for Water Supply and Sewerage variable width, shown in yellow and marked ‘E’ on the attached plan.

2. To pay compensation and costs associated with the acquisition from Shoalhaven Water’s Sewer and Water Funds. Compensation determined by the Valuer General to be in accordance with the provisions of the Land Acquisition (Just Terms Compensation) Act 1991.

3. That the necessary application be made to the Minister for Local Government and the Governor. The acquisition is to be carried out under the Local Government Act 1993.

4. That the Common Seal of the Council of the City of Shoalhaven be affixed to any documents required to be sealed.

SA19.6 Public Interest Advocacy Centre Study - Water Supply Disconnections

HPERM Ref: D19/2327

RESOLVED * (Clr Proudfoot / Clr Pakes) MIN19.10

That the information in the report on Public Interest Advocacy Centre Study - Water Supply Disconnections be noted.

CARRIED

Note: Clr Proudfoot requested the Traffic Committee or staff urgently investigate the intersection of Booderee Avenue and Naval College Road where there is a temporary roundabout, now relocated adjacent to the road. The white lines along Naval College Road at the intersection have not been erased, which is presenting a risk to drivers having to suddenly brake. The Acting General Manager advised that this would occur.

There being no further business, the meeting concluded, the time being 5.04pm.

Clr Wells

CHAIRPERSON

Strategy and Assets Committee – Tuesday 12 February 2019

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SA19.7 Notice of Motion - Shoalhaven Indoor Sports Centre – Provision of a Solar System

HPERM Ref: D19/9623

Submitted by: Clr John Wells

Purpose / Summary

The following Notice of Motion, of which due notice has been given, is submitted for Council’s consideration.

Recommendation (Item to be determined under delegated authority)

That upon the Shoalhaven Indoor Sports Centre being handed over to Council by the Contractor, Council proceed to call for Expressions of Interest for the installation, operation and future handover of a photovoltaic solar system at the Centre.

Background

At the 11 December 2018 Strategy & Assets Committee meeting a report on the Shoalhaven Indoor Sports Centre – Water Collection and Re-use Scheme made passing reference to a range of Environmentally Sustainable Development initiatives integrated within the design brief. Particular reference was made to the excellent passive design principles which made the asset thermally and energy efficient and comfortable for users.

The report made two references to energy, viz

• “These initiatives remain a goal for the design team:

o Target overall reduction in energy consumption with associated impact upon greenhouse gas emissions.”

• “Potential photovoltaic solar system design assists with the base load energy consumption on site.”

There are a number of owners of assets within the Shoalhaven whose large roof areas have encouraged them to “switch to solar” to relieve themselves of the variabilities of grid supply and pricing and to sell surplus energy into the grid. Some of these arrangements have been self funded, others have proceeded on the basis of a contract with a solar system supplier, installer, operator on the basis of guaranteed supply at an agreed (competitive) price for a specified period of time. There can be options at the end of the contract term – remove the system, hand the system over to the asset owner, or extend; each option will impact the $kwh over the contract term.

It is proposed Council test the market for the supply and operation of a solar electricity system for the Indoor Centre. As a basis for discussion/consideration of the framework for an EOI, I would propose the following:

• The system be installed and operated by a selected provider at no cost to Council

• The system be owned and operated by the provider for a period of (say) ten years

• The system meet all the need for electricity by the Shoalhaven Indoor Sports Centre and potentially a renovated Shoalhaven Basketball Stadium

• Council agrees to purchase all the electricity it needs from the provider at a competitive negotiated price

• Supply generated above and beyond the needs of the Centre shall be capable of sale by the provider at the most advantageous price for it

• In the event of a failure of supply the provider shall compensate Council to the extent of any costs Council has incurred in purchasing grid power

• All repair and maintenance of the solar system shall be the responsibility of the supplier

• The supplier will indemnify Council against any and all liabilities arising from any failure of or damage caused by the solar system

• At the expiry of the (say) 10 year contract term, ownership of the system shall transfer to Council

Councillors will recall that Council has another substantial project proceeding at the adjacent Artie Smith Oval. The upgrading of this asset to regional sports field status requires the installation of floodlighting to 500 lux standard – this would be an opportunity to have solar/battery capability to supplement grid supply. Therefore the EOI documentation might make reference to a potential future need to connect the Centre’s solar system to a battery storage installation.

Finally, as the whole complex will have extensive parking facilities, Council should consider the installation of a number of EV charging stations for visitors to the facilities and the 40,000+ vehicles a day which use the Princes Highway/Cambewarra Road roundabout only half a kilometre away.

I commend the foregoing to my colleagues.

John Wells

Note by the General Manager

The Shoalhaven Indoor Sports Centre design team recognises that environmental sustainability is one of the most important issues facing contemporary society. Accordingly, the team placed an emphasis on integrating best practice environmental design into the project, analysing the impact on our environment and importantly on the well-being of its occupants.

Environmentally sensitive considerations have been integrated into the design development. For instance:

• Natural ventilation systems provide cross flow cooling to the court halls,

• LED lighting products and motion control switching improve energy efficiency,

• Translucent roof panels and glazing introduce natural light into the largest court hall,

• Precast concrete panels and insulation maximises the building thermal efficiency,

• Instantaneous natural gas water heating systems reduces energy wastage,

• Rainwater harvesting and the reuse in amenity flushing supplements town water supply, reducing water consumption,

• Use of sustainable materials for court floors decreases the reliance on natural growth timber species,

• Potential photovoltaic solar system design assists with the base load energy consumption on site.

Therefore, the context of this Notice of Motion is highly relevant and aligned with this design philosophy and measures implemented to date. The project team have undertaken some preliminary investigations regarding the installation and use of Photo Voltaic Solar Systems to supplement the base power requirements for the new centre. Although this Notice of Motion recommends consideration of alternatives means for providing solar energy the overall principles are the same. Therefore, all options for provision of solar energy on this site will be considered. This will entail an evaluation of each of these options to enable Council to select the most beneficial model.

Strategy and Assets Committee – Tuesday 12 February 2019

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SA19.11 Re-establishment of Alcohol Free Zones - Nowra CBD, Ulladulla, Sanctuary Point, Callala Beach, Basin View, St Georges Basin, Sussex Inlet

HPERM Ref: D19/15298

Group: Finance Corporate & Community Services Group

Section: Human Resources, Governance & Customer Service

Attachments: 1. Map - Attachment 1 - Nowra CBD ⇩

2. Map - Attachment 2 - Nowra Foreshore ⇩

3. Map - Attachment 3 - Ulladulla ⇩

4. Map - Attachment 4 - Sanctuary Point ⇩

5. Map - Attachment 5 - Callala Beach ⇩

6. Map - Attachment 6 - Basin View ⇩

7. Map - Attachment 7 - St Georges Basin ⇩

8. Map - Attachment 8 - Sussex Inlet ⇩

Purpose / Summary

To consider a proposal to re-establish those Alcohol Free Zones in the areas of the Shoalhaven which are to expire in 2019 - as detailed in this report.

Recommendation (Item to be determined under delegated authority)

That:

1. Council proceed with the re-establishment process of the Alcohol Free Zones for a period of four (4) years in the areas of Nowra CBD, Nowra Foreshore, Ulladulla Sanctuary Point, Callala Beach, Basin View, St Georges Basin and Sussex Inlet including consultation with licensees in the surrounding areas;

2. Should no objections be received to the re-establishment of these zones, authority be given to staff to proceed with the declaration of the above areas as an Alcohol Free Zone, without further reference to Council.

Options

1. As recommended – proceed with the re-establishment of the Alcohol Free Zones until 2023. As outlined in the report, these areas have been agreed to by the NSW Police as appropriate for the purpose of limiting alcohol consumption and maintaining community safety.

2. That Council not proceed with the re-establishment of the Alcohol Free Zone in the areas specified in the report.

Implications: This may result in the increase of anti-social behaviour and property damage resulting from irresponsible street drinking.

Background

Council currently has alcohol free zones listed below and these zones are all due to expire in the foreseeable future. Council has received support from the NSW Police Service, Shoalhaven Local Area Command, Council’s Recreation, Community & Culture Section, Business and Property Section Manager and Council’s Ranger Services for the zones to be re-established for the allowed four (4) year period, for the purpose of preventing alcohol related crime in the area.

Council has established the Alcohol Free Zones in accordance with Section 644 of the Local Government Act 1993, which prohibits consumption of alcohol on Council-owned footpaths, roads and carparks within the zone specified in this report.

Council has proposed that the following areas be declared Alcohol Free Zones:

Nowra CBD (Refer Map Attachment 1)

Nowra Foreshore (Refer Attachment 2)

Ulladulla (Refer Map Attachment 3)

Sanctuary Point (Refer Map Attachment 4)

Callala Beach (Refer Map Attachment 5)

Basin View (Refer Map Attachment 6)

St Georges Basin (Refer Map Attachment 7)

Sussex Inlet (Refer Map Attachment 8)

In accordance with the requirements for establishment of Alcohol Free Zones, notice has been provided to the NSW Police, who have written in support of the re-establishment of the zones by email received on Friday 1 February 2019 which stated the following:

“I have reviewed all the marked re-established alcohol free zones in the proposal forwarded to my office. I am satisfied that they not only encompass all the necessary areas that are deemed as being more 'high risk' in relation to alcohol related crime, but that they are also all necessary implementations to help both Council and Police manage responsible alcohol consumption in the areas.

As mentioned by licensing Police in comments over previous years, the marked areas are known to Police to attract higher levels of juvenile alcohol consumption, and irresponsible adult consumption. Therefore, having these areas enforced as alcohol free zones gives Police and other Officers further legislated powers to remove alcohol from persons immediately, powers which may not be viable without the areas being 'alcohol-free.' This therefore allows Officers to more effectively control the areas and reduce the irresponsible alcohol consumption, which in turn reduces alcohol related crime and makes the overall community safer.”

Council will undertake the Statutory process for administering the re-establishment process of the Alcohol Free Zones, which includes advertising and writing to local liquor licence outlets. Once this process is commenced, if no adverse comments are received, Council will continue with the re-establishment of these zones.

Community Engagement

Alcohol free zones are created in streets and car parks with the aim to reduce anti-social behaviour and property damage resulting from irresponsible street drinking. Advice from Police is that re-establishing these zones certainly assists them in performing their role.

In accordance with the Guidelines, should Council proceed with the re-establishment, community consultation will be conducted.

Financial Implications

The direct costs associated with the re-establishment of the alcohol free zones detailed in this report include advertising, general administration costs and the erection or placement of a sticker on signs, which can be funded within the current Governance Unit budget.

Strategy and Assets Committee – Tuesday 12 February 2019

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SA19.12 December 2018 - Quarterly Budget Review

HPERM Ref: D19/29638

Group: Finance Corporate & Community Services Group

Section: Finance

Attachments: 1. Quarterly Budget Review Statement December 2018 (under separate cover)

Purpose / Summary

In accordance with Regulation 203(1) of the Local Government (General) Regulation (2005), the responsible accounting officer must prepare and submit to Council a budget review statement after the end of each quarter. This has been carried out for the second quarter of the 2018/19 financial year.

Recommendation

That Council

a. Receive the December Quarterly Budget Review information

b. Adopt the adjustments, as outlined in the December Quarterly Budget Review document

Options

1. Adopt the recommendation

Implications: Nil

2. Not adopt the recommendation and make an alternative resolution

Implications: Staff will need to rework the quarterly budget review in accordance with the alternative resolution.

Background

The budget review involves an analysis of Council’s annual budget for each Group to determine whether any changes in votes are required for the period. This process has been undertaken for the period to 31 December 2018 and any changes are reported in the attached Quarterly Budget Review Statement. This report also analyses the progress of each Group in achieving its financial objectives.

Projects requiring funding

The following Council resolutions and reports have been noted as priority items for consideration/inclusion in future budgets:

As future funding is identified, it will be highlighted and put to Council to place against their next highest priority from the above list.

Council’s Funds

General Fund

The budget adopted by Council produced an operating profit of $13.5M after capital grants, an operating deficit before Capital Grants and Contributions of $2.9M and a reduction in cash and investments of $11M.

The current budget cash deficit of $335K is per the September Quarterly Budget Review report. The December Review has improved that position by $152K to a revised projected cash deficit of $183K, due to the following factors:

· Licencing Fees in Community Health exceeding budget - increase of $77K

· Subdivision Certificate Fees exceeding budget $125K, partly offset by the creation of Para Planner / Customer Service Officer position - $37K to improve the Development Application lodgement process.

As noted at the September Budget Review, whilst 2018/19 is projecting a cash deficit, this can be adjusted against the cash surplus retained at June 2018 of $537K.

In terms of what is driving the operating result, the following are the amendments that are impacting:

Revenue

As at 31 December, General Fund has achieved 63% of the revised budget. This is primarily due to the raising of rates revenue in full. Excluding rates income, General Fund has achieved 45% of the revised budget. The December Quarterly Budget Review Statement recommends an increase of $582K. The major adjustments in the review are:

Category	Amount ($’000)	Reason
Revenue
Rates and Annual Charges	+416	Additional Rates revenue received in Waste, offset to Capital Works and Reserve
User Charges & Fees	+218	Due to additional Licence Fees, Application Fees for Food Premises Inspections, Art Sales and offset for cost neutral positions in Planning’s Building Section
Interest & Investments	+795	General Fund +700K, Waste Fund +140K offset to Reserve, reduction in dividend expected from Southern Phone -45K
Other Revenues	+21	Pontoon hire +9K, Art Prize +3K, Insurance reimbursement +5K, Sale of small assets +4K
Internal Revenues	-150	Removal of old 2-way radio budgets, offset by reduction to expenditure
Grants & Contributions - Operating	+555	Weeds Action +52K, Boneseed +31K, Crime Prevention +75K, Garden Waste +76K, Bin Trim +70K, Love Food Hate Waste +10K, Better Waste +129K, Block Grant +94K, Sports Partnership +17K
Grants & Contributions – Capital	+745	Voyager Park +600K, Wattle Trail Upgrade +87K, Regional Road Repair +60K, Beaumont Station -3K

Operating Expenditure

General Fund is on target with operating expenditure at 49% of the revised budget. The December Quarterly Budget Review Statement recommends an increase of $128K, made up of:

Category	Amount ($’000)	Reason
Operating Expenditure
Employee Benefits & Oncost	-297	Transfer to capital projects -520K, Para Planner part year +37K, grant-associated staffing +84K, transfer from Materials +30K, cost neutral positions in Planning area +67K
Materials & Contracts	+523	Transfer to Employee Costs -30K, transfer from Other +100K, grant-associated expenses +488K, insurable expenditure +31K, Beach Patrol contract extension +15K, Art Sales +23K
Other Expenses	-189	Transfer to Materials -100K, transfer to capital -92K
Internal Expenses	-116	Reduction due to removal of old radio network

Non-Operating Expenditure

Capital expenditure as at 31 December is 24% of the revised budget (excluding commitments). The December Quarterly Budget Review Statement recommends a budget decrease of $1.49M, mostly due to the reforecast of expenditure in Waste Capital area.

Asset Sales

Asset sales are at 46% of the December Adjusted Budget. An increase of $520K has been recommended in this review, relating to sale of three assets.

Water Fund

The budget adopted by Council produced an operating profit of $2.4M, an operating profit before Capital Grants and Contributions of $1.4M and a reduction in cash and investments of $5.2M. The adjustments made in this quarterly review have resulted in the following:

The December Quarterly Budget Review Statement details the recommended budget adjustments with comments on these adjustments and any significant variances. Below is a summary of the adjustments and results to date.

Income

As at 31 December, Water Fund has achieved 47% of the revised budget.

The December Quarterly Budget Review Statement recommends an increase of $651K. This adjustment relates mainly to interest income on investments $590K and the reallocation of resources to capital projects $60K.

Operating Expenditure

Water Fund is on target with operating expenditure at 50% of the revised budget.

A decrease of $13K is recommended for this review. This adjustment relates to the variance between the old 2-way radio budget and the new system.

Non-Operating Expenditure

Capital expenditure as at 31 December is 24% of the revised budget (excluding commitments).

A reduction of $1M is recommended after reviewing the timing of a number of key projects and expected outflow of payments.

Asset Sales

Asset sales is at 79% of the revised budget; there are no adjustments recommended.

Sewer Fund

The budget adopted by Council produced an operating profit of $11M, an operating profit before Capital Grants and Contributions of $9.5M and a reduction in cash and investments of $27.5M. The adjustments made in this quarterly review have resulted in the following:

Income

As at 31 December, Sewer Fund has achieved 51% of the revised budget.

The December Quarterly Budget Review Statement recommends an increase of $337K. This adjustment relates to interest income on investments +$300K and increased chargeable private works +$30K.

Operating Expenditure

Operating Expenditure as at 31 December is 46% of the revised budget. A budget reduction of $16K is recommended for this review. This adjustment relates to the variance between the old 2-way radio budget and the new system.

Non-Operating Expenditure

Capital expenditure as at 31 December is 29% of the revised budget (excluding commitments). A reduction of $2.25M is recommended after reviewing the timing of a number of key projects and expected outflow of payments.

Asset Sales

Asset sales are at 93% of the revised budget. An adjustment of $18K has been recommended. This relates to the proceeds received from the sale of assets.

Council’s Groups

General Manager’s Group

The recommended budget changes, revised budget and result to date for the General Manager’s Group are summarised below; details of the adjustments and variances are included in the December Quarterly Budget Review Statement.

General Manager’s Comments:

The reduction in the forecast revenue primarily relates to a lower than anticipated grant from the University of Wollongong (Mind the Gap Program) which has a corresponding reduction in operational expenditure.

Expenditure movements are due to SRV funds held in the GM’s budget for new key staff positions being disbursed according to appointments being made in other budget areas.

The reduction in estimated capital expenditure is related to the anticipated cash outflows in the Industrial Land activities. These are offset by adjustments to anticipated reserve movements and will be added back to the draft 2019/20 capital works ten (10) year plan.

Finance, Corporate and Community Services

The recommended budget changes, revised budget and result to date for the Finance, Corporate and Community Services Group are summarised below; details of the adjustments and variances are included in the December Quarterly Budget Review Statement.

Group Director’s Comments:

The improved revenue forecast relates to higher than anticipated interest on investments $700K and the recognition of the $600K grant for the improvements to Voyager Park, Huskisson. The additional grant funds are also reflected in the revised capital expenditure forecast.

Proceeds from art sales at the Regional Gallery are also higher than anticipated but are offset by additional staff costs associated with increased hours for part-time staff to improve the visitor experience.

The straight-line expenditure forecasts for capital projects as shown in Attachment 1 need to be considered in the context of the timing of a number of significant projects which have a delayed commencement – such as building improvements at the Nowra Showground, the Bay & Basin Leisure Centre Hub, and a range of grant funded projects that are awaiting the execution of funding agreements from relevant Government Departments. There are also significant contract progress payments to be made before 30 June 2019 relating to the new Shoalhaven Indoor Sports Centre.

It should also be noted from the capital expenditure listing at Attachment 1 that the significant variance between the actual YTD spend and the budget forecast for Corporate Business System & Services relates to the replacement of Council’s core suite of corporate business Information Technology Systems (Project Q). There are a number of budget and costing adjustments yet to be finalised to distribute costs to both the Water and Sewer Funds as well as other internal adjustments to account for the secondment of a number of subject matter experts from operational areas into the Project Q Team.

Also, the resolution of the Council at the meeting held on 23 January 2018 with respect to report SA18.5 was as follows:

That Council

1. Commit an additional $5000 to the blessing of the Fleet Committee for the 2018 Festival

2. That the sponsorship/ donation to the Blessing of the Fleet Festival be considered in the current review of donations and sponsorships

It was unclear at the time that the intention was for the additional $5,000 to be ongoing (i.e., $15,000 per year) until the revised donations policy is adopted. This has been clarified and the adjustment to the unallocated donations budget for 2018/2019 has been included as part of this Budget Review.

Planning, Environment and Development Services

The recommended budget changes, revised budget and result to date for the Planning, Environment and Development Services Group are summarised below; details of the adjustments and variances are included in the December Quarterly Budget Review Statement.

Group Director’s Comments:

Projected income includes successful grants associated with coastal projects, including Shoalhaven Heads foreshore, where funds are received as progress payments.

The Flood levy repair project is 90% complete and claims have been submitted for works to date to the NDRAA in January 2019.

Non-operating expenditure also includes significant coastal works as per above, with works in the process of commissioning.

Small Lot Rural Subdivision

Nebraska Estate: $52,905 remains for progressing rezoning investigations.

Verons Estate: The $150,000 borrowed in 2006 to fund the rezoning investigations has been fully spent. A total of $25,000 has now been transferred from the Strategic Planning Consultants budget. This will need to be recouped from landowners, at a later date. $1,413 has also been transferred from road construction to rezoning investigations. Further transfer(s) may be necessary to complete the project.

Road investigations and construction: The balance of the roadwork design budget for Nebraska Estate for 2018/2019 is $10,646. The balance of the construction budgets for Jerberra, Verons and Nebraska Estates for 2018/2019 are $2.5M, $2.1M and $12,853 respectively.

Assets and Works

The recommended budget changes, revised budget and result to date for the Assets and Works Group are summarised below; details of the adjustments and variances are included in the December Quarterly Budget Review Statement.

Group Director’s Comments:

Revenue – Block Grant +92K, Roads to Recovery Program +60K. Waste – additional rates revenue received +415K and four new grants +426K in total.

Expenditure - +75K for SRV officer (Traffic), transfer to Roads Capital $360K SRV funding, transfer to Project Delivery area $100K Matron Porter fencing, increase in Waste (four grants + $110K for Kerbside Contract expenses).

Capital – transfers from FCCS (Interest) and A&W roads operating and capital to fund Bolong/Coolangatta in Traffic Management area. Waste – review of cash outflows has led to reforecast of capex spend & funds returned to the reserve for expenditure in 19/20.

$20.2M is allocated to ten “Special Projects” which are very complex in nature and most are still in the early development stages. Expenditure on the remaining $53.8M is at 38%.

Stormwater Levy

Spending against the Stormwater Levy is 11% of budget.

Group Director’s Comments:

Works have been completed at Pritchard Avenue, River Road, The Park Drive & Prentice Avenue.

Of the $889,154 remaining budget for the projects listed in the “Preliminary Works” category, approximately $500,000 of Construction Funding is being “held up”. Staff are identifying “shovel ready” alternative priority drainage projects to divert this construction money to.

Special Rate Variations

Spending against the Special Rate Variation from 2013/14 is 42% of budget.

Group Director’s Comments:

Expenditure essentially on track.

Spending against the Special Rate Variation from 2017/18 is 100% of budget and has been fully expended.

Spending against the Special Rate Variation from 2018/19 is 63% of budget.

Group Director’s Comments:

Expenditure, essentially, on track.

Shoalhaven Water

The recommended budget changes, revised budget and result to date for the Shoalhaven Water (General Fund) Group are summarised below; details of the adjustments and variances are included in the December Quarterly Budget Review Statement.

Group Director’s Comments:

The Shoalhaven Water General Group is operating slightly under budget, with revenue at 43% of budget and operational expenditure at 41% of budget. The recommended reductions of ($144K) to revenue and ($12K) to operating expenditure relate to a variance in the internal charges between the old 2-way radio system and the updated system.

Water Fund

The recommended budget changes, revised budget and result to date for the Shoalhaven Water (Water Fund) Group are summarised below; details of the adjustments and variances are included in the December Quarterly Budget Review Statement.

Group Director’s Comments:

The Water Fund is operating on target, with operational expenditure at 50.4% and revenue at 47.4% of budget. The adjustment for revenue relates to the reallocation of resources to capital projects $60K and the increase interest revenue from investments, due to changes in the timing of capital expenditure $590K. The reduction to operating expenditure relates to the internal charges adjustment for the updated 2-way radio system coming on line $13K. The capital program is progressing at 24.1% of budget and requires an adjustment of $1,005K. This reduction is due to a change in the timing of a number of capital projects and expected outflow of payments.

Sewer Fund

The recommended budget changes, revised budget and result to date for the Shoalhaven Water (Sewer Fund) Group are summarised below; details of the adjustments and variances are included in the December Quarterly Budget Review Statement

Group Director’s Comments:

The Sewer Fund is operating on target, with operating expenditure at 46.4% of budget and revenue at 50.8%. The adjustment to revenue relates to income from chargeable private works $30k and additional interest income, due to changes in the timing of capital expenditure. The adjustment to operating expenditure of ($16k) relates to the internal charges adjustment for the updated 2-way radio system coming on line. The capital program is at 28.9% of the budget and requires a reduction of $2,250k. This reduction is due to a change in the timing of a number of capital projects and expected outflow of payments.

Financial Implications

Adjustments made in the December quarter budget review have resulted in a projected cash deficit budget. Council will need to be mindful of the situation and not introduce new works or services unless a funding source is clearly identified.

Strategy and Assets Committee – Tuesday 12 February 2019

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SA19.14 Response - MIN18.198 - Various Issues - Sanctuary Point & St Georges Basin

HPERM Ref: D18/205106

Group: Assets & Works Group

Purpose / Summary

Respond to the 27 March 2018 MIN18.198 regarding various issues in Sanctuary Point and St Georges Basin.

Recommendation (Item to be determined under delegated authority)

That:

1. Council note the staff responses to MIN18.198 various issues at Sanctuary Point & St Georges Basin.

2. The General Manager (Director Assets and Works) include $50,000 in the 2019-20 draft budget to complete all survey and design and costing of options for the following:

a. An Urban Area Entry threshold solution (north of the Cockrow Creek Bridge on Larmer Road) and a roundabout solution at the Park Drive and Larmer Road intersections ($20,000).

b. A roundabout at the corner of Sanctuary Point Road and Larmer Avenue/ Paradise Beach Road, Sanctuary Point ($20,000).

c. A Local Area Traffic Management strategy for the local street network in the vicinity of Tahnee Street Sanctuary Point ($10,000)

3. A further report be provided to Council once options have been designed and costed.

Background

At its meeting on 27 March 2018, Council resolved (MIN18.198):

That following a meeting with several concerned community members, that the ensuing list of requests be given serious consideration for inclusion in future budgets, works programmes and funding applications. Staff would need to provide their professional input and report back to Council with a realistic way forward:

1. Traffic calming measures on Larmer Avenue, Sanctuary Point on the approach to Cockrow Creek bridge where the 70 km/hr becomes 50 km/hr, be installed. Local residents are adamant that motor vehicles, garbage trucks and delivery wagons are travelling across the bridge at speeds in excess of 80 km/hr, with noise levels being intolerable and the risk of accidents high.

2. Urgent road maintenance works be carried out on The Park Drive at, Sanctuary Point at various locations, but in particular from Larmer Avenue to Boronia Avenue and to Boronia Avenue itself.

3. A roundabout be constructed at the corner of Sanctuary Point Road and Larmer Avenue/ Paradise Beach Road, Sanctuary Point.

4. Acknowledge and promote Palm Beach as the iconic beach that it is, and support this acknowledgement with enlightened expenditure on infrastructure.

5. Upgrading of the Basin Walking track through Sanctuary Point, as proposed in 2015.

6. Provision of at least 3 new barbeque shelters where users can also enjoy their meals under cover, similar to the way that it occurs in other locations such as Mollymook, Plantation Point and Sussex Inlet, and who knows how many other locations within the Shoalhaven.

7. Removal of the dangerous, sharp and pointy, introduced grasses around the trees and seating areas throughout Ray Brooks Reserve, Paradise Beach and other St George’s Basin public foreshore reserves.

8. Reconsideration of the dangerous stairs, recently constructed from Ray Brooks Reserve to the 5 star, “By the Beach B and B,” with only a one-sided handrail, with a long drop to the bottom. Modification at the top also needs attention.

9. Removal of the large sand and wrack piles from alongside of the toilet block together with the large piles of mulch.

10. A serious review of the deterioration of the ageing ramp from Greville Avenue to the bottom of Ray Brooks Reserve.

11. The construction of a boardwalk to allow a safe continuation of the Basin Walking track around its original course at the base of the cliff beneath and around Red-head Point, as properly shown on Google Earth. This would make it available for everyone to complete their walk or ride in safety, including the disabled, mothers with prams, mothers with children, children on bikes, older citizens requiring a level platform to walk on, sports enthusiasts, as well as the future influx of tourists.

12. A safety audit regarding the impact of foreshore vegetation on the capacity of parents and carers to adequately supervise young children whilst they swim at beaches such as Palm and Paradise Beaches, Sanctuary Point.

13. The following works at Tahnee Street, Sanctuary Point be given urgent attention:

a. Replacement of damaged kerb near the junction with Nadine Street (already scheduled) be progressed in conjunction with a minor road widening at that point.

b. The provision of speed humps be given a high priority in future works programmes.

c. Concrete trucks, delivery wagons and trade trucks be directed, by signage, to by-pass Tahnee Street and use Kean Street, further South.

Below is a response to each of the items

1. Traffic calming measures on Larmer Avenue, Sanctuary Point on the approach to Cockrow Creek bridge where the 70 km/hr becomes 50 km/hr, be installed.

Response – Assets & Works Group

Traffic surveys were undertaken in response to MIN18.198. The outcome of the traffic survey/analysis (survey undertaken 50m north of Park Dr between Park Drive and the Cockrow Creek bridge, approximately 90m south of the 50/70 speed zone change) identified that approximately 10,000 vehicles per day travel this section of road with 85^th percentile speed (V85) – speeds surveyed at 59.4km/h. The posted speed limit is 50km/h.

Situations like this (85^th percentile speed of round 60km/h in a 50km/h zone) are typical across the city for main collector and distributor roads of this nature. The initial response is to forward this information to the NSW Police with request for regular and effective patrols of the area. Another traffic survey will be conducted in October 2019 and this will assist detailed design considerations.

Traffic calming devices are usually only approved to prevent through traffic or to maintain acceptable conditions on lower order roads or in more built up areas. Larmer Avenue is a designated regional road, and one of the main collector roads linking Sanctuary Point to Jervis Bay. Accordingly, guidelines do not support the installation of traditional traffic calming devices on roads like Larmer Avenue, unless as a roundabout.

Due to the function of Larmer Avenue and the prevailing site constraints, a roundabout (at the Park Drive intersection) could provide effective traffic management and speed control. However, because the Park Road intersections are T-Junctions, and due to the current road constraints, to achieve the required deflection required for a roundabout at a strategic location (on the urban fringe), like in this case, is likely to be expensive, estimated to be in the order of $500,000 (cost subject to review following design).

Grant funding is not currently an option, there being no crash history.

Other lower cost options could be investigated, such as a town entrance gateway treatment; however, experience suggests that this is likely to have only a marginal effect on speed, the cost of such a treatment would need to be minimal and would best be coordinated with pavement or bridge works.

For collector/distributor roads as busy as Larmer Avenue, guidelines only support consideration of roundabouts as speed control devices. There is only one other location that Council has resolved in the past to install a raised speed control threshold device on a collector/distributor road that is as busy as Larmer Avenue, and that is Golf Avenue, Mollymook (that too was in response to community pressure for a speed control device).

Since the device was installed on Golf Avenue Mollymook there has been ongoing noise complaints and Council engaged an independent noise consultant to undertake an assessment of that location (and also several other locations city wide).

The noise assessment found variable results; however, where noise increases were detected they were found to be within acceptable environmental limits.

Higher noise levels were assessed at the Golf Avenue site which were determined to be more attributable to the design of that device. Options may need to be investigated to address that location.

The most realistic way forward would be to prepare a detailed design of an Urban Area Entry threshold solution (north of the Cockrow Creek Bridge on Larmer Road) and a roundabout solution at the Park Drive and Larmer Road intersections, and then prioritise works accordingly.

2. Urgent road maintenance works be carried out on The Park Drive at, Sanctuary Point at various locations, but in particular from Larmer Avenue to Boronia Avenue and to Boronia Avenue itself.

Response – Assets & Works Group

Staff undertake regular inspections and are aware of the condition of these pavements.

The management practice is to prioritise ageing pavements for resealing and carry out regular pothole repairs until a patching program is undertaken and then resealing occurs.

There are occasions when the reseal design is being carried out that it becomes obvious that a reconstruction of the total pavement is more appropriate.

The times between these actions are a function of the funding allocated to the patching, resealing and rehabilitating activities.

Boronia Ave was patched then resealed in October 2018.

The Park Drive was listed in the same resealing program but the reseal design phase identified that it is past resealing and thus the pavement has now been prioritised into the current three year rolling reconstruction program.

Roads awaiting reconstruction and resealing do get more frequent informal inspection attention and thus increased maintenance effort.

3. A roundabout be constructed at the corner of Sanctuary Point Road and Larmer Avenue/ Paradise Beach Road, Sanctuary Point.

Response – Assets & Works Group

No crash history or traffic issues have presented at this site and thus no detailed forward planning has been undertaken, and grant funding from existing programs is not an option.

A local road roundabout similar to that which has recently been constructed 335m further to the west along Paradise Beach Road (at Kingsford Smith Crescent) is estimated to be in the order of $350,000 (i.e. a mountable roundabout). The final cost is subject to detailed design as roundabouts often impact on underground services and the actual impact is difficult to determine from a desktop assessment.

The most realistic way forward would be to prepare a detailed design, and then prioritise works accordingly.

4. Acknowledge and promote Palm Beach as the iconic beach that it is, and support this acknowledgement with enlightened expenditure on infrastructure.

Response – Finance, Corporate & Community Services Group

Palm Beach has been listed on Council’s Website and Google listed. A design and estimate are being sought for a new walkway as part of the Shoalhaven Sustainable Infrastructure Grant application and playground replacement is proposed pending Stronger Country Communities Fund Grant.

5. Upgrading of the Basin Walking track through Sanctuary Point, as proposed in 2015.

Response – Planning, Environment & Development Group

The following maintenance and capital works have been undertaken along the Basin Walking Track since 2015:

· Following damage from 2015 & 2016 repairs made to boardwalk damaged below Irene St, additional drainage installed and maintenance on the track surface total of $22,000

· Additional raised boardwalk installed at the Palm Beach end of the walk $20,000

· 2016/17 2 x Work for the dole programs worked over 12 months on improving the condition of the walking track

· Currently Council has allocated $35,000 annually, in the last 3 years’ budget, for walking track upgrades across the city. This budget is spread across 36 walking tracks. A budget bid has been made in each of the past 5 years requesting an increase to this capital budget. Each bid has been unsuccessful.

Response – Finance, Corporate & Community Services Group

This community request has been added to the Register of Community Requests, for consideration for inclusion in future budgets and funding applications. Consultation will be undertaken with the CCB to assess preferred/needed locations of shelters.

7. Removal of the dangerous, sharp and pointy, introduced grasses around the trees and seating areas throughout Ray Brooks Reserve, Paradise Beach and other St Georges Basin public foreshore reserves.

Response – Assets & Works Group

An assessment of these native grasses has been made and an assessment of the volume makes its cost prohibitive to remove and replace these plants.

Response – Planning, Environment & Development Group

These steps were built to replace the dangerous steps that had been installed by the residents, they have been built to meet Australian Standards. Having regard to comments received, an additional handrail will be programmed for placement on the stair.

9. Removal of the large sand and wrack piles from alongside of the toilet block together with the large piles of mulch.

Response – Planning, Environment & Development Group

The approval from DPI NSW Fisheries allows residents and Council to relocate parts of the seagrass wrack from the beach and permits use by residents as mulch/compost for gardens.

The large sand and wrack piles have been removed and approximately five truckloads of mulch remain.

Applying mulch to areas is a winter activity and this valuable mulch is accessed for mulching works each year. The most appropriate course of action here is to keep the mulch piles tidy and regularly turning over.

10. A serious review of the deterioration of the ageing ramp from Greville Avenue to the bottom of Ray Brooks Reserve.

Response – Finance, Corporate & Community Services Group

The foot bridge/path is currently serviceable, but deteriorated. It is identified for replacement. Design for replacement will be funded from this financial year’s Minor Improvements budget. Quotes will then be sought, and staff will pursue funding opportunities for the project / identify budgets.

The bridge is inspected regularly for risk issues, in conjunction with the adjacent play equipment, and any repairs are carried out as determined necessary, by inspectors.

Response – Planning, Environment & Development Group

The location of this proposed asset is situated in an intertidal zone on a rock platform that is subject to coastal hazards from storm surge and flooding inundation. Placing any public recreational infrastructure in this location would be in direct conflict with Council risk-based policy and procedures under our Coast and Estuary Asset Management Plan. Specific approval would be required from State Government agencies for infrastructure on an intertidal rock platform.

Response – Finance, Corporate & Community Services Group

Parks Crews have been tasked with trimming back vegetation as required.

Council staff under most circumstances would not prune or remove foreshore vegetation for the purposes of child supervision. Exceptions are usually in the form of the removal of dead or otherwise compromised trees after a Visual Tree Inspection (VTA) has been carried out by Council Tree Management Officers.

Foreshore vegetation plays a vital role in preventing shoreline erosion and dune stabilisation. It also provides vital habitat to local fauna. Child supervision remains the responsibility of the parent or guardian.

13. The following works at Tahnee Street, Sanctuary Point be given urgent attention:

a. Replacement of damaged kerb near the junction with Nadine Street (already scheduled) be progressed in conjunction with a minor road widening at that point.

Response – Assets & Works Group

These works were completed in June 2018.

b. The provision of speed humps be given a high priority in future works programmes.

c. Concrete trucks, delivery wagons and trade trucks be directed, by signage, to by-pass Tahnee Street and use Kean Street, further South.

Response – Assets & Works Group

Further to this matter being raised at the 27 March 2018 meeting of Council, a petition containing 14 signatures was discussed that stated the following:

“We, the undersigned, residents of Tahnee Street, Sanctuary Point, are concerned with the recent increase in traffic volume using this street. Tahnee Street has become a thoroughfare for through traffic due to recent road infrastructure changes, connecting with links Avenue, Corella Street and Jean Street. Tahnee Street is not sufficiently wide enough (4m) to allow two-way traffic to pass safely. This has caused traffic to encroach on and damage the nature strip. The location of storm water drain entrances near the corners of Tahnee Street has led to tyre damage. Cars travelling at unsafe speeds have been noted and could result in vehicle collisions.

We, the undersigned, request to installation of speed humps to slow the traffic and to minimise the volume of traffic using Tahnee Street as a thoroughfare.”

The petition was received for information by Council.

Following the above resolutions of Council in relation to Sanctuary Point and specifically Tahnee Street, staff wrote to all owners / residents of Tahnee Street, Nadine Street, Kean Avenue, and Kirkham Way, so that those affected by any changes were duly informed of the resolutions and actions that Council proposed, which included the following advice:

o There is no plan to install speed humps “in the short term”, due to the likely noise complaints associated with trucks and trade vehicles traversing the speed humps during the development of housing in the new estate.

o That speed humps will be thoroughly investigated once the construction of dwellings in the new housing estate approaches full occupancy. A traffic and speed survey will be undertaken to determine the speed profile and assist with broad consultation prior to any final decisions regarding speed humps.

o It is not recommended that there be a “direction” provided to trucks and trade vehicles to use Nadine Street and Kean Avenue, until such time as there has been broader consultation with those owners and residents who will be affected by such a direction. It is anticipated that possible sign posting measures and the process to achieve a regulation of heavy vehicle traffic will be outlined when the matter is reported back to Council

There have been no further complaints received since the letter was provided to residents in May 2018 and following completion of the widening works at the eastern end of Tahnee Street (intersection with Nadine Street) completed in June 2018.

A closure of the western section of Tahnee Street (at Nadine Street) and One way arrangements in Tahnee Street are currently being considered as part of DA DA18/1700 57-61 Tahnee Street Sanctuary Point (proposed child care centre). This will be subject of a separate report to Council to consider the development application. If approved and the proposed traffic control measures are implemented as part of the centre development, it is likely that speed will reduce.

Based on the above the most realistic way forward would be to continue to monitor the area, work through the DA matter and manage via the normal works upgrade channels.

Strategy and Assets Committee – Tuesday 12 February 2019

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SA19.15 Proposed Lease of Part Lot 702 DP 1024852 - West Street Nowra - Nowra Tennis Clubhouse and Courts

HPERM Ref: D19/15632

Group: Assets & Works Group

Section: Business & Property

Attachments: 1. Lease Plan - Part Lot 702 DP 1024852 - West Street Nowra ⇩

Purpose / Summary

To provide Council with an opportunity to consider approval of a new one (1) year lease plus a three (3) year option to Schizophrenia Fellowship NSW Ltd trading as One Door Mental Health over Nowra Tennis Clubhouse and Two (2) Courts at Part Lot 702 DP 1024852, West Street Nowra.

Recommendation

That Council resolve to:

1. Enter into a one (1) year lease agreement over Part Lot 702 DP 1024852, West Street Nowra, with a three (3) year option period with Schizophrenia Fellowship NSW Ltd trading as One Door Mental Health at a commencing rent of $3,904.40 pa plus GST with annual CPI increases, and a court resurface contribution (2 tennis courts) of $3,090.00 pa.

2. Approve the allocation of court resurface contribution (2 courts) of $3,090.00 under the lease agreement into the Restricted Asset Account for this facility.

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 for the premises as determined under the “rental assessment framework” as per the Occupation of Council Owned and Managed Land Policy. In addition, Council will also receive a court resurface contribution for two (2) tennis courts included in this agreement with funds being allocated to the restricted asset account for the two (2) courts.

2. Not adopt the Recommendation

Implications: Schizophrenia Fellowship NSW Ltd trading as One Door Mental Health will need to find alternate premises, and the subject premises will remain vacant until Council undertakes an Expression of Interest for a new tenant.

Background

The subject land is Crown land comprising part of the Nowra Showground under Reserve Number D580011. Council is the appointed Crown Land Manager.

Schizophrenia Fellowship NSW Ltd have occupied the club house and six tennis courts as shown by the blue broken line in the aerial photo below since March 2011. They initially traded as “Helping Hands” but in 2016 changed their trading name to “One Door Mental Health”.

Schizophrenia Fellowship NSW Ltd was established by the Illawarra Area Health Service under the Mental Health Integration Project. The program services the Shoalhaven and surrounding districts as far as Gerringong to the north. Participants vary in age from young adults to seniors. They are a leading mental health service, specialising in supporting people with severe and persistent mental illness.

Schizophrenia Fellowship NSW Ltd (One Door Mental Health) provides an opportunity for people living with mental illness in the Shoalhaven to engage in social and recreational activities. This helps to build confidence and decrease social isolation. Programs delivered include (but are not limited to) group activities for tennis, advocacy for people assessing NDIS funding, address social isolation, peer support, and computer literacy.

One Door Mental Health are currently in the process of transitioning services to the NDIS system and will receive funding until July 2020.

One Door Mental Health have proposed to retain and control the clubhouse and the 2 southern courts (adjoining Worrigee Street) but wish to relinquish the 4 northern courts. The maintenance responsibilities and cost to upkeep all 6 tennis courts has been a large burden on the organisation’s finances. The four (4) northern courts are surplus to their needs and under-utilised. This will result in a new lease over the part of the reserve from Worrigee St to the solid green line as shown in the aerial photo above. The new lease plan is also shown at attachment 1.

The two (2) southern courts will remain available to the public in accordance with the Plan of Management and any booking of the courts will be made through One Door Mental Health.

The four (4) northern courts will be available for public hire and are to be included in the Council online booking system managed through Recreation, Community and Culture.

In accordance with Council’s ‘Occupation of Council Owned or Managed Land’ policy, a rental valuation for the Tennis Clubhouse only was obtained from independent valuers Walsh & Monaghan who assessed the market rental for the Clubhouse at $21,840.00 per annum plus GST.

Based on the information received from One Door Mental Health in its proposal document and using Council’s rental subsidy matrix, One Door Mental Health qualifies for a rental subsidy of 82.73%, which means that the annual rental can be reduced to $3,904.40 per annum plus GST with Council’s consent.

Council will also receive a contribution to the cost of resurfacing the courts of $1,545.00 per court, (2 courts = $3,090.00), to be allocated to the restricted asset account for this facility in accordance with the Asset Management Plan, Courts – Tennis and Netball.

Schizophrenia Fellow NSW Ltd trading as One Door Mental Health have agreed to the following Terms.

Terms Schedule

Lessor:	The Council of the City of Shoalhaven
Address:	Bridge Road Nowra
Lessee:	Schizophrenia Fellowship NSW Ltd trading as One Door Mental Health
Address:	The Old Gladesville Hospital Building 36, Digby Road, Gladesville NSW 2111
Premises:	Part Lot 702 DP 1024852 West Street Nowra
Term:	1 year
Commencing date:	1 September 2018
Terminating date:	31 August 2019
Option period:	3 years
Rent:	$3,904.40 per annum plus GST, and 2 courts x $1545, totalling $3090.00 pa to be attributed to the Restricted Asset Account for this facility (southern 2 courts only).
Fee review method	Annually according to CPI
Portion of outgoings:	100%
Maintenance	As per Maintenance Schedule for this facility.
Permitted use:	Tennis Court hire, community meeting room and ancillary facilities.
Limit of liability under insurance:	$20 Million ($20,000,000.00)
Special Condition	The community will have unhindered access to the 4 tennis courts located to the north of the Clubhouse.

Community Engagement

In accordance with Section 47 of the Local Government Act, a public notice in relation to the proposed lease was attached to the door of the Tennis Clubhouse and an advertisement placed in the South Coast Register. Adjoining property owners were also notified.

No submissions were received.

Policy Implications

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

Financial Implications

Council will receive annual rent for the premises known as West Street Tennis Clubhouse and a contribution to the restricted asset account for future resurfacing of the tennis courts.

Strategy and Assets Committee – Tuesday 12 February 2019

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SA19.17 Shoalhaven Heads - River Road Foreshore Precinct Rehabilitation Project Progress

HPERM Ref: D19/25115

Group: Planning Environment & Development Group

Section: Environmental Services

Attachments: 1. Shoalhaven Heads - River Rd Foreshore Precinct Rehabilitation Landscape Plan ⇩

2. Shoalhaven Heads - River Rd Foreshore Precinct Rehab Project - 50% design ⇩

Purpose / Summary

To provide Council with a progress update on the Shoalhaven Heads – River Road Foreshore Precinct Rehabilitation Project.

Recommendation (Item to be determined under delegated authority)

That Council receive the Shoalhaven Heads - River Road Foreshore Precinct Rehabilitation Project Progress report for information.

Options

1. As recommended.

Implications: Council proceed with project detailed design, approvals and hold the next community consultation meeting seeking input on the final stage of detailed design.

2. Council do not receive the report for information and direct staff to undertake alternative work.

Implications: Directing alternative work may result in the cost to the project and delays to change the existing program for delivery.

3. Council adopt an alternative option.

Implications: Unknown.

Background

Generally, the scope of work is to undertake foreshore restoration works to reconstruct part of the embankment along the northern side of the Shoalhaven River, Shoalhaven Heads. The project design and works are being managed by Council’s Project Delivery team in the Assets & Works Group, and community consultation and grant administration managed by Natural Resources & Floodplain Unit (Planning, Environment & Development Group) in conjunction with Project Delivery. As previously reported to Council, the foreshore suffered significant erosion during the east coast low storms in 2016. The area in question runs parallel to River Road generally between Renown Avenue and Mathews Street (opposite the Heads Hotel).

The University of NSW Water Research Laboratory undertook an assessment of the coastal management options for a one-kilometre length of foreshore generally aligned with Jerry Bailey Road / Hay Avenue intersection at the west to the Holiday Haven Shoalhaven Heads Caravan Park, River Road in the east.

Qualitative prioritisation of management works determined to focus on a 170-metre-long section of the embankment.

Grant funding for the work was approved on 10 April 2018 for $1,213,000 from Infrastructure NSW, and Council received formal notification from NSW Treasury that the project had been executed on 26 September 2018. Council will be contributing $550,000 towards the project from the stormwater levy, coastal infrastructure reserve and coastal maintenance budgets.

The work is proposed to include the civil engineering reconstruction of the embankment, stormwater management, and beach access by the construction of two new beach access steps. In the funding there is no allowance for any road / street improvements, pavements etc., although being specifically related to the civil works, replacement vegetation is funded.

Following a formal select Request for Quotation process, Council engaged the services of coastal engineering specialist Magryn & Associates Pty Ltd to prepare the detailed design, and part of the consultants’ brief was to attend two on-site meetings with members of the Shoalhaven Heads Estuary Taskforce (SHET).

To date the consultant has prepared the 50% detailed design drawings and documents, following community consultation with SHET.

Community Engagement

Council has been collaborating with the Shoalhaven Heads Estuary Taskforce (SHET), who have actively worked with Council throughout the concept design phase of this project.

Consultant Engineer Mr Terry Magryn met with Council staff and community representatives, discussing the proposal with the benefit of former consultants’ reports and Council’s schematic streetscape plan. After the meeting the civil engineering design was progressed and was provided via staff to community members who met in early October 2018. Several correspondences followed which considered a variety of streetscape options and confirmation of the design development drawings provided by the consultant.

SHET consulted widely in the community involving residents, the Heads Hotel and local Fishing Club. While this resulted in a wide variety of comments and opinions, the streetscape design was finalised. This includes the deletion of viewing platforms originally supported yet replaced by enlarging the top landings of the proposed two sets of beach to road access steps being adopted early in the design consultation process.

The following table outlines the community consultation undertaken and the changes made to the projects 50 % design because of the consultation.

Consultation issues raised	Date	Changes to design because of consultation
Separate access for property 57 from rear of property shown on design	19/09/2018	Initial design showed access to the rear of this property; this was removed as it is illegal
Concern with retaining trees on embankment	21/09/2018	As many trees as is possible will be retained – no changes
Property owner of 64 River Rd concerned about losing boat launching ramp from rear of property to the river	28/09/2018	Explained to the owner that it is not possible to provide rock revetment protection and retain private boat ramp – no changes
50% design send to Shoalhaven Heads Community Forum for feedback	3/10/2018	No changes from forum
Local Fishing Club requested the installation of fishing platforms	14/10/2018	Explained that the fishing platform would be at increased risk of being washed away from wave action and the risk posed to the public from anglers casting
On-site meeting with SHET to review 50% design stage	15/10/2018	· One larger viewing platform changed to two smaller viewing platforms · Move eastern beach access steps
Heads Hotel owner raised concern over having the viewing platform opposite the pub – concerned about issues relating to his license and Licensing Act rules	12/11/2018	Removed the reference to viewing platform and reduced them in size. Called them landings between steps.

Program Implications

Currently, due to the extended community consultation, the project is running two months behind schedule. The civil engineering design is scheduled to be completed in January 2019. Staff proposed to call tenders for the defined scope of work in March 2019 targeting contract engagement of a suitably experienced civil contractor within the current financial year, then allowing about nine months for the construction based on the tendered scope of works.

Policy Implications

It is proposed that the tender will be an open public tender in accordance with the Local Government (General) Regulation 2005 (as amended) Clause 167. If the contract value exceeds $1,000,000, or as determined by the General Manager a report will be provided to Council to assess its position, with the intention of entering into a contract for the work.

Financial Implications

As noted previously $1,763,000 is available to proceed with the works. This funding was approved on 26 September 2018 by the NSW Treasury under the Shoalhaven Heads – River Road Foreshore Precinct Foreshore Rehabilitation Project.

No funding has been provided by Council for streetscape improvements. Yet a concept design has been submitted to Council (Attachment 1) which includes kerb and guttering indented with an accessible vehicle space and two regular vehicle spaces, a raised pedestrian crossing directly opposite the Heads Hotel Motel at 51 River Road, and a shared user path for the section of public space between Renown Avenue and Mathews Street.

Risk Implications

As noted in Council’s options to not receive the report for information, and direct staff to undertake alternative work will likely result in a delay to the program and may impact on the cost for delivery.

Work of this nature involving subsurface ground works gives an increased risk for the work to become more costly and prolonged. Furthermore, the type of work with large boulders requiring stabilisation is specialised and may result in an increased risk for supply, transport and placement.

Further delays in the project may result in delays in the grant funding or needing to submit a project variation to Infrastructure NSW.

Strategy and Assets Committee – Tuesday 12 February 2019

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Local Government Amendment (governance & planning) act 2016

Chapter 3, Section 8A Guiding principles for councils

(1) Exercise of functions generally

The following general principles apply to the exercise of functions by councils:

(a) Councils should provide strong and effective representation, leadership, planning and decision-making.

(b) Councils should carry out functions in a way that provides the best possible value for residents and ratepayers.

(c) Councils should plan strategically, using the integrated planning and reporting framework, for the provision of effective and efficient services and regulation to meet the diverse needs of the local community.

(d) Councils should apply the integrated planning and reporting framework in carrying out their functions so as to achieve desired outcomes and continuous improvements.

(e) Councils should work co-operatively with other councils and the State government to achieve desired outcomes for the local community.

(f) Councils should manage lands and other assets so that current and future local community needs can be met in an affordable way.

(g) Councils should work with others to secure appropriate services for local community needs.

(h) Councils should act fairly, ethically and without bias in the interests of the local community.

(i) Councils should be responsible employers and provide a consultative and supportive working environment for staff.

(2) Decision-making

The following principles apply to decision-making by councils (subject to any other applicable law):

(a) Councils should recognise diverse local community needs and interests.

(b) Councils should consider social justice principles.

(d) Councils should consider the principles of ecologically sustainable development.

(e) Council decision-making should be transparent and decision-makers are to be accountable for decisions and omissions.

(3) Community participation

Councils should actively engage with their local communities, through the use of the integrated planning and reporting framework and other measures.

Chapter 3, Section 8B Principles of sound financial management

The following principles of sound financial management apply to councils:

(a) Council spending should be responsible and sustainable, aligning general revenue and expenses.

(b) Councils should invest in responsible and sustainable infrastructure for the benefit of the local community.

(c) Councils should have effective financial and asset management, including sound policies and processes for the following:

(i) performance management and reporting,

(ii) asset maintenance and enhancement,

(iii) funding decisions,

(iv) risk management practices.

(d) Councils should have regard to achieving intergenerational equity, including ensuring the following:

(i) policy decisions are made after considering their financial effects on future generations,

(ii) the current generation funds the cost of its services

Chapter 3, 8C Integrated planning and reporting principles that apply to councils

The following principles for strategic planning apply to the development of the integrated planning and reporting framework by councils:

(a) Councils should identify and prioritise key local community needs and aspirations and consider regional priorities.

(b) Councils should identify strategic goals to meet those needs and aspirations.

(d) Councils should ensure that the strategic goals and activities to work towards them may be achieved within council resources.

(e) Councils should regularly review and evaluate progress towards achieving strategic goals.

(f) Councils should maintain an integrated approach to planning, delivering, monitoring and reporting on strategic goals.

(g) Councils should collaborate with others to maximise achievement of strategic goals.

(h) Councils should manage risks to the local community or area or to the council effectively and proactively.

(i) Councils should make appropriate evidence-based adaptations to meet changing needs and circumstances.