Agenda of Ordinary Meeting

Ordinary Meeting

Meeting Date: Tuesday, 30 April, 2019

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

Time: 5.00pm

Membership (Quorum - 7)

All Councillors

Please note: The proceedings of this meeting (including presentations, deputations and debate) will be webcast and may be recorded and broadcast under the provisions of the Code of Meeting Practice. Your attendance at this meeting is taken as consent to the possibility that your image and/or voice may be recorded and broadcast to the public.

Agenda

1. Acknowledgement of Traditional Custodians

2. Opening Prayer

3. Australian National Anthem

4. Apologies / Leave of Absence

5. Confirmation of Minutes

· Ordinary Meeting - 26 March 2019

6. Declarations of Interest

7. Call Over of the Business Paper

8. Presentation of Petitions

9. Mayoral Minute

10. Deputations and Presentations

11. Notices of Motion / Questions on Notice

Notices of Motion / Questions on Notice

CL19.88....... Rescission Motion - MM19.7 Mayoral Minute - Students Global Strike for Climate Change........................................................................................................... 1

CL19.89....... Rescission Motion - CL19.56 Notice of Motion - West Culburra Concept Plan 2

CL19.90....... Notice of Motion - CL19.56 West Culburra Concept Plan............................. 3

CL19.91....... Rescission Motion - DE19.24 Further Update - Possible Heritage Listing - Former Huskisson Anglican Church........................................................................... 4

CL19.92....... Notice of Motion - DE19.24 Further Update - Possible Heritage Listing - Former Huskisson Anglican Church........................................................................... 5

CL19.93....... Notice of Motion - Huskisson Sea Pool.......................................................... 6

CL19.94....... Notice of Motion - Jet Skis - Jervis Bay......................................................... 7

CL19.95....... Notice of Motion - Aboriginal Tourism............................................................ 8

CL19.96....... Notice of Motion - Roadworks Coordination Plan.......................................... 9

CL19.97....... Notice of Motion - PCYC - Sanctuary Point................................................. 10

CL19.98....... Notice of Motion - Australian Surf Life Saving Awards................................ 11

CL19.99....... Notice of Motion - Sealing of Woodburn Road Morton................................ 12

CL19.100..... Notice of Motion - Development Application - 29 Tindalls Lane, Berry....... 14

12. Committee Reports

CL19.101..... Report of the Development & Environment Committee - 2 April 2019........ 15

DE19.22...... Shoalhaven River Estuary Coastal Management Program - Acceptance of NSW OEH Grant - Coast and Estuary Grant Program

CL19.102..... Report of the Strategy & Assets Committee - 9 April 2019......................... 16

SA19.44...... Acquisition of Electricity Easement for Pad Mount Substation - Lot 366 DP 821493 New Street, Ulladulla

SA19.45...... Draft Policy - Creation of an Asset Protection Zone (APZ) over Council Owned or Managed Land

SA19.49...... Ratepayer Advance Agreement - Kerb & Gutter Construction - 41 Basin View Pde Basin View

CL19.103..... Report of the Shoalhaven Sports Board - 20 March 2019........................... 18

SB19.2........ Shoalhaven Sports Board Membership

SB19.4........ Sports Board Terms of Reference

SB19.9........ Additional Item - Sporting Hall of Fame Guidelines and Policy Review

CL19.104..... Report of the Coastal Estuary & Floodplain Management Liaison Group - 27 March 2019.............................................................................................................. 19

CE19.1........ Liaison Group Structure

CL19.105..... Report of the Shoalhaven Traffic Committee - 9 April 2019........................ 20

TC19.18...... Extension of No Stopping Zone - Enterprise Drive South Nowra (PN 3536)

TC19.19...... Proposed Bridge Closure - Long term closure signage (PN 3538)

TC19.20...... Proposed Line Marking - The Lake Circuit Culburra Beach (PN 3539)

13. Reports

General Manager

CL19.106..... Delivery Program and Operational Plan 2019 - Public Exhibition.............. 33

CL19.107..... Sale of Council Employment Land - Proposed Lot 22 Mussel Way, Woollamia 47

CL19.108..... Sale of Council Employment Land - Proposed Lot 24 Duranbah Drive, Woollamia...................................................................................................................... 49

CL19.109..... Sale of Council Employment Land - Proposed Lot 25 Duranbah Drive, Woollamia...................................................................................................................... 51

CL19.110..... Sale of Council Employment Land - Proposed Lot 27 Duranbah Drive, Woollamia...................................................................................................................... 53

CL19.111..... Sale of Council Employment Land - Proposed Lot 28 Duranbah Drive, Woollamia...................................................................................................................... 55

CL19.112..... Sale of Council Employment Land - Proposed Lot 29 Erina Road, Woollamia 57

Finance Corporate & Community Services

CL19.113..... Review of POL19/11 Revenue Stormwater Management Policy................ 59

CL19.114..... Investment Report - March 2019.................................................................. 65

CL19.115..... Donations Policy........................................................................................... 71

CL19.116..... National Sports Convention - Reimagining Sport...................................... 107

Assets & Works

CL19.117..... Collaboration with Corrective Services NSW Community Corrections Agency - Opportunities for Offenders to contribute to improving assets in the Community 109

CL19.118..... Proposed Purchase of Vacant Land, Nowra.............................................. 122

CL19.119..... Tenders - Shoalhaven Indoor Sports Centre - Trade Package No. 99 - Terrace Construction Sub Contract & Budget Status Update................................. 123

Planning Environment & Development

CL19.120..... Development Application No.18/1844 – 120 Macleans Point Road – Lot 653 DP 27855.......................................................................................................... 125

CL19.121..... Variations to Development Standards - First Quarter Report 2019........... 137

CL19.122..... Quarterly review for compliance matters................................................... 140

CL19.123..... Outcome of Industry Forum - Design Review Panel for Shoalhaven........ 150

Shoalhaven Water

CL19.124..... Draft Proposal for 2019-20 Water and Sewer Charges............................. 161

Councillor Conference Report

CL19.125..... 9th Australian Small Bridges Conference.................................................. 164

14. Confidential Reports

Reports

CCL19.6...... Proposed Purchase of Vacant Land - Nowra

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

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.

CCL19.7...... Tenders - Shoalhaven Indoor Sports Centre - Trade Package No. 99 - Terrace Construction Sub Contract & Budget Status Update

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

Ordinary Meeting – Tuesday 30 April 2019

Page 46

CL19.106 Delivery Program and Operational Plan 2019 - Public Exhibition

HPERM Ref: D19/110755

Group: General Manager's Group

Section: Executive Strategy

Attachments: 1. Draft - Capital Works 2019-2020 (under separate cover) ⇨

Purpose

To provide Council with the Draft Delivery Program and Operational Plan, Draft Fees and Charges and Draft Resourcing Strategy for 2019/20. To seek the endorsement of Council to place these documents on public exhibition, in accordance with legislative requirements.

Recommendation

That Council:

1. Receive and note the revised format for the Draft Delivery Program and Operational Plan (DPOP), Draft Fees and Charges and Draft Resourcing Strategy for 2019/20.

2. Note the inclusion of the detailed three (3) year Capital Works Program included in the DPOP and presented separately as Attachment 1.

3. Place the Draft Delivery Program and Operational Plan, Draft Fees and Charges and Draft Resourcing Strategy on public exhibition, as soon as possible, for a period of 28 days in accordance with legislative requirements.

4. Use a range of engagement techniques, including Council’s Information Nights and other communication methods, to provide information to the community about Council’s Draft Delivery Program and Operational Plan (DPOP), Draft Fees and Charges and Draft Resourcing Strategy for 2019/20 and including the Draft Budget for 2019/20.

5. During the exhibition process, consider the projects and items provided by staff and Councillors, that have not been included within the current budget and identify any possible funding sources for these projects.

6. The Acting General Manager include Councillor and staff feedback and the feedback received from the community for any other projects as part of the report on the exhibition period to Council.

7. The Acting General Manager also provide a report back to Council on options and potential funding strategies to enable progression of the Shoalhaven Heads River Road Foreshore precinct rehabilitation project.

8. Note that additional design elements will be added to the suite of Integrated Planning & Reporting documents presented in this report, prior to exhibition, to enhance readability and understanding for the community.

Options

1. Council resolve to place the Draft Delivery Program and Operational Plan, Draft Fees and Charges and Draft Resourcing Strategy for 2019/20, on public exhibition for 28 days

Implications: This would allow Council to seek public comment about the documents and to allow time for the community to have their say. Any changes received as part of the exhibition process could then be presented back to Council for consideration.

2. Council recommend amendments to be made to the Draft Delivery Program and Operational Plan, Draft Fees and Charges and Draft Resourcing Strategy and resolve to place the amended drafts on exhibition for 28 days

Implications: Any amendments made to the documents now would need to occur within a short timeframe. This is to ensure the documents could be placed on public exhibition, in accordance with legislative requirements. There will be time within the exhibition period to provide comments and changes. There are also several items that will need to be considered as part of the exhibition process and could be added as amendments following exhibition.

3. Council not place the draft documents, as presented, on exhibition

Implications: There is a very limited timeframe in which Council must meet legislative requirements. Council must place the documents on exhibition at some stage to seek public comment prior to submitting to the State Government. Any delay in publishing the document will result in Council not meeting the requirements set for it by the State Government.

Integrated Strategic Planning Framework- Providing Transparency and Accountability

Each year Council is required to prepare updates to the Integrated Planning and Reporting Framework including the Delivery Program, Operational Plan, Resourcing Strategy and Fees and Charges, in accordance with legislative requirements. This is to ensure Council clearly shows how it is planning and delivering for our community and budgeting within appropriate standards.

Council is embarking on an ambitious program for the future, with a clear direction and detailed actions to be delivered this financial year. This Draft Delivery Program, Budget, Resourcing Strategy and Fees and Charges documentation clearly:

· Provides a significant capital works program with over $58.2 million in capital spend, including a focus on delivering improved sporting facilities, roads, playgrounds and other community assets.

· Presents a far more transparent three-year Capital Works Program, with proposed future years projects clearly shown and detailed in the Delivery Program (Section 13 Capital Works). The format and content of this Program is a further step towards the improved transparency of Council projects and programs. This program can be found in the Capital Works section of the document and is also provided separately as Attachment 1.

· Focuses on roads and maintenance of assets and improvements to sporting fields, with additional expenditure of $500,000 on sportsground improvements and $1million on asset maintenance from the dedicated revenue achieved from the Special Rate Variation.

· Meets the requirement for no deficit cash budgeting.

· Details the plan to achieve improvements to the Fit for the Future ratios and performance measures.

· Outlines $2.69 million of special rate variation funds for 2019/20 for roads projects

· Provides $1.6 million drainage and stormwater management projects, $3.1 million for waste management, $3.2 million for local road repair programs and $2.9 million for local road reseal and re-sheet programs

· Details continued rate relief for drought affected farmers

· Provides over $300,000 of donations to our community for a range of activities, events and programs and over $660,000 of subsidy/support to community for tourism events, cultural activities, business awards and heritage programs

· Provides for the net cost of the services for the Shoalhaven Animal Shelter and the new Shoalhaven Indoor Sports Centre operations, continued funding for peak tourist period management, construction of the Tomerong public amenities, park enhancements at Old Erowal Bay and Jacobs Drive resurfacing.

· Provides $940,500 for recreation projects including Regional Skate Park facilities at Vincentia and Council’s Park Enhancement Program.

Council Priorities

The Delivery Program continues to focus on supporting the provision of:

· Resilient, Safe and inclusive communities

· Sustainable, liveable environments

· Prosperous communities and

· Responsible Governance

There also remain ten Goals that Council has set to achieve over the next two years with actions that align with these goals. The document outlines the steps needed to be undertaken to assist in achieving the agreed outcomes for the community. The Goals include:

· Build inclusive safe and connected communities

· Activate communities through arts culture and events

· Support active healthy liveable communities

· Improve and maintain road and transport infrastructure

· Plan and manage appropriate and sustainable development

· Protect and showcase the natural environment

· Maintain and grow a robust economy with vibrant towns and villages

· Provide reliable services that meet daily community needs

· Provide advocacy and transparent leadership through effective government and administration

· Inform and engage with the community about the decisions that affect their lives

Key Activities and Projects

The Delivery Program contains the actions and projects that will be delivered in the 2019/20 financial year and the budget to support their delivery. Some of the key activities and projects that have been identified to deliver on Council’s goals include:

· Progress the development of the new District Library at Sanctuary Point

· Commission the fit out and operation of the new Shoalhaven Indoor Sports Centre

· Complete the stormwater drainage program and Local Road Repair Program identified in the Capital Works Program

· Prepare and maintain a range of strategies and plan for growth of the City including the review of the Shoalhaven Growth Management Strategy

· Continue to deliver the REMS project

· Develop Boongaree District Park

· Renew Nowra Showground

· Complete the Milton Ulladulla Croquet project

· Undertake continued Industrial Land Development

· Delivery of a number of toilet and park facilities including the Tomerong toilets and Erowal Bay Playground

· Undertake the Coastal Management Program

· Deliver a new Community Engagement Strategy including the requirements of the new State Government Community Participation Plan

Response to Community Feedback – Document Enhancements

Annually Council also measures the progress on delivering the programs and actions contained within this framework via the annual Community Survey. In 2018 the survey results indicated that the provision of information about Council’s decision making was a top priority for the community and an area that needed improvement. The need to provide more transparency and accountability in the decision-making process was a common theme throughout the feedback provided to Council.

In response to this feedback, this year the format of the Integrated Strategic Planning documentation has been streamlined. Replacing the chapter based Integrated Strategic Plan is now three individual draft documents including the:

· Draft Delivery Program and Operational Plan: which contains the budget, financials, activities and goals to be delivered by Council in the 2019/20 financial year

· Draft Fees and Charges: which contains all the fees and charges that are charged for our services and facilities

· Draft Resourcing Strategy: which contains the Workforce Strategy, Asset Management Strategy and the Long Term Financial Plan. For the purposes of this iteration, only the Long Term Financial Plan is required to be updated and reconsidered by Council.

This year focus has also been placed on improving the content, layout and design of the documents to ensure that can be more easily understood by the community. Significant improvements to the presentation of the documents for the exhibition period have been undertaken, with the inclusion of enhanced graphic design elements and infographics. This is in line with many other councils and further enhances the readability of the documents. Some additional formatting and editing is still to occur, and this will be finalised prior to any exhibition of the documents.

A detailed engagement strategy has also been prepared, to assist in promoting and informing the community about these documents. Efforts will also be made to clearly inform the community about their ability to provide feedback to Council about the activities and budget contained within the documents.

Budget Details- General Fund

The Operating Result for 2019/20, excluding capital grants, is a deficit of ($3,104K), compared to the estimated deficit of ($2,482K) as reported to IPART. When capital grants are included, the net operating result is a surplus of $15,006K. There is no net impact on the cash flow result for unrestricted general fund, that is, the budget conforms to the requirement for no cash deficit budgeting.

Table 1: General Fund Result

Capital Works Program- General Fund

Capital expenditure of $58.2 million has been allocated in the Draft Budget for 2019/20. The total includes the following significant projects/programs:

· $4.3 million for SRV Road Renewals

· $3.1 million for Waste Management

· $3.2 million for Local Road Repair Programs

· $2.9 million for Local Road Reseal and Re-sheet

In addition, several large projects are funded by expected Government Grants, as shown below:

· Local Road Repair (Roads to Recovery) $1,713,475*

· Fire Stations (unallocated) $624,000

· Footpaths $594,000

· Regional Road Repair Program $343,000

* Calculated as one-fifth of the five-year program

Table 2 below summarises the overall Capital Works Program and the focus of funding allocations:

Table 2: Capital Works Program

Budget Inclusions- Councillor Notices of Motion

There are also a number of items that have been included within the budget as a result of Council Notices of Motion. For the 2019/20 budget these include:

Minute /Report	Group	Title	Requested Amount	Funding Obtained	Comment	Outstanding
MIN 18.92	Finance & Corporate	Old Erowal Bay - Playground, BBQ Area & Amenities	$100,000	$100,000	Included in 19/20 Draft Budget	$0
MIN 18.290	Assets & Works	Huskisson Traffic Control - roundabout intersection Owen/Sydney/Tomerong Streets	$800,000	$25,000 in 18/19	June 2018 QBR - for development design of roundabout	$775,000
MIN 18.303	Assets & Works	Public Toilets - Tomerong	$170,000	$170,000	Included in 19/20 Draft Budget	$0
MIN 18.983	Finance & Corporate	Boongaree - provide initial budget allocation of $200K	$200,000	$219,475	MIN16.791 provided $52K; June 2017 QBR provided $2,475; 2017/18 Budget provided $165K	$0

Funding for the installation of solar panels to Shoalhaven Entertainment Centre is also currently being identified and will be the subject of a report to the May Council meeting.

Special Rate Variation- Revenue and Expenditure

In February 2018, Council submitted a Special Rate Variation application to IPART. On 15 May 2018, IPART approved Council’s application in full; that is:

· Maintaining the 13.2% from the 2017/18 SRV as a permanent increase and an additional 5% in 2018/19 (includes the announced rate peg of 2.3%)

· 5.0% in 2019/20 (including announced rate peg of 2.7%, based on the increase in the Local Government Cost Index for the year to June 2018)

· 5.0% in 2020/21 (including estimated rate peg of 2.5%).

As detailed in the IPART submission, the additional revenue is being used to:

· improve Council’s financial sustainability,

· reduce its infrastructure backlog,

· reduce its operating deficit and

· fund asset renewal and maintenance.

As indicated last year, part of the SRV will be applied to the owners of properties in the Verons Small Lot Estate to repay the loan for infrastructure construction.

A total of $11.271M will be raised in 2019/20 through the SRV approval. This increases to $13.467M in 2020/21.

This additional revenue is being utilised for increased maintenance expenditure in 2019/20 and is allocated as follows:

· $615,000 Roads

· $205,000 Buildings

· $205,000 Parks and Reserves

The following additional amounts (Table 4) will also be spent on asset renewals from the SRV revenue received:

Table 4: SRV Asset Renewals

The baseline budget, excluding the impact of the Special Rate Variation approved by IPART, contains salary savings. However, as part of this approval IPART also acknowledged the need for additional resources in certain areas critical to the operational delivery of priority projects and improvements. As a result, the approval provided by IPART for the SRV also included a component of the additional revenue that could be specifically allocated to providing additional staff within these priority areas.

This allocation allows for the use of $1 million funding allocation for 2018/19 and a further $1 million in 2019/20. In accordance with the requirement of the SRV approval additional Rangers, a Grants Officer, Bushcare Officers, additional engineers – including three Graduate Engineers, a Principal Electrical Engineer and a Floodplain Engineer – and positions supporting community development, natural areas asset management, disability inclusion, environmental sustainability, capital works portfolio analysis and support positions in GIS, web development, recruitment, WHS and records have been funded in this year’s budget directly from the SRV funds.

The remainder of additional revenue will fund ongoing current operations and support the improvement of the financial position of Council, in accordance with the IPART approval. In this regard it is important to note that 100% of the SRV revenue to be raised in 2019/20 is allocated in the draft Budget to works and services consistent with the IPART approval.

Special Rate Variation – 2014/15

There is also a continuation of the Special Rate Variation of 4.6% from 2014/2015. This additional revenue continues to be spent on priority roads projects. The road projects that a proposed to be funded by this SRV for the 2019/20 financial year are as follows:

Table 5: SRV Road Projects

Additional Budget Considerations – Exhibition Period

Whilst some requested projects and programs have been included within the draft budget for 2019/20, there remain a number of additional requests that have been provided through staff budget bids and also through the Councillor briefing process.

A total of 32 operational budget bids and 32 capital budget bids were received from staff to address newly legislated requirements (some of which will need to be funded), asset management planning, business systems transformation and to support expanded or new projects to better support Council to serve the community. These bids await further review by senior management and by Council during the public exhibition period.

The following Council resolutions and reports have also been noted as priority items for consideration/inclusion in future budgets. They are not currently funded through this year’s budget.

Minute / Report	Title	Requested Amount	Funding Obtained	Comment	Outstanding
MIN17.797	Hoarding & Domestic Squalor (emergency cleaning, pollution incidents, etc.)	$50,000			$50,000
MIN18.204	Warden Head Lighthouse Ulladulla co-contribution	$75,000			$75,000
MIN17.739	LP406 - Falls Ck / Woollamia Deferred areas planning proposal	$400,000			$400,000
MIN18.290	Huskisson Traffic Control - roundabout intersection Owen/Sydney/Tomerong Streets	$800,000	$25,000 in 18/19	June 2018 QBR - for development design of roundabout	$775,000
CL18.123	Repay Land Decontamination Reserve (Berry RFS)	$400,000			$400,000
MIN18.695	Berry Heritage Investigation Project	$40,000			$40,000
MIN18.982	Bomaderry Basketball Stadium - Investigation & Consultation re future use	$30,000			$30,000
MIN18.982	SCARP - Amend Master Plan & develop preliminary Quantity survey, cost benefit analysis & business case	$150,000			$150,000

During the budget briefing process Councillors also identified other areas for future focus, should budget be available. These projects and programs include:

· The repair and/or replacement Ulladulla Boardwalk

· A range of small improvement projects in Bawley Point

· Road improvements at Duffy Corner and Mt Scanzi Rd Budgong

· Jetty and boat ramp maintenance at Shoalhaven Heads

· Development of a plan for provision of parking along Explorer Blvd Shoalhaven Heads

· Upgrade of boat ramp at Callala Bay

· Resurface of Jacobs Drive and improvements to footpaths and cycleways Sussex Inlet

· Repairs of Lake Tabourie boardwalk

· Works on the entry road and footpath into Holiday Haven at Lake Tabourie

· Replacement of the tables and chairs on Council reserve area in front of general store at Lake Conjola and include new shade structure

· Bendalong Masterplan

· Sealing of Hay Ave Boat Ramp Car park

Whilst the listed projects have not been included within the current budget, every effort will be made to include these projects as part of any identified savings or through other funding sources that become available in either 2018/19 or 2019/20.

Potential Funding Opportunity

It has already been identified that there is $600,000 in restricted interest budget allocations, that has arisen from funds that were set aside for projects that have since been deleted from the Section 7.11 Contributions Plan. This interest revenue, which is currently recorded in the budget as restricted from use for other purposes, could be used to fund some of the projects identified above. Staff have sought advice to ensure that there is no legal requirement to retain this interest revenue in restricted funds and, therefore, make it available for reallocation. An update will be provided once the advice is received.

Shoalhaven Heads River Road Foreshore Precinct Rehabilitation Project

The foreshore restoration works to reconstruct part of the embankment along the northern side of the Shoalhaven River, Shoalhaven Heads, has been previously reported to Council. The project design and works are being managed by Council’s Project Delivery team and community consultation and grant administration managed by the Natural Resources & Floodplain Unit in conjunction with Project Delivery.

Grant funding for the work was approved on 10 April 2018 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 towards the project from the stormwater levy, coastal infrastructure reserve and coastal maintenance budgets.

To date the Coastal Engineering consultant, appointed through a formal request for quotation process, has prepared the 95% detailed design drawings and documents. In the lead up to this, a number of consultation sessions were held with Shoalhaven Heads Estuary Taskforce (SHET), which resulted in some design changes to address community issues.

With the benefit of the 95% detailed design, a revised cost estimate has now been prepared. This revised estimate indicates that the project exceeding original estimates. Council will need to secure further funding prior to going to tender, as per the Office of Local Government guidelines and the Local Government Act/Regulations. Staff are currently investigating options in this regard and will report back as part of budget considerations.

Salary System Review

Council resolved (MIN18.939) at its 4 December 2018 Extra Ordinary Meeting to authorise the General Manager to negotiate with Unions and the Staff Consultative Committee to establish a new salary system capped to an overall increase at the equivalent of a 4% increase in annual employee costs (excluding annual Award increases) and to provide a further report of the outcome of the negotiations and the funding strategy.

Two salary table options have been presented to staff, unions and the Staff Consultative Committee, being Option 1 as recommended by staff in the Confidential Report to the Senior Staff Contractual Matters Committee Meeting of 13 November 2018 and Option 2 which reflected an adjusted table prepared in response to Councillor feedback at the 4 December 2018 Meeting. The feedback received from the staff information sessions, United Services Union Yard Meetings and feedback received by HR and Consultative Committee members is that the overall staff preference is for Option 2 which provides adjustments across the complete salary table.

The 2019/20 budget shows the impact of this increase from August 2019, as follows:

Waste Services	$190,000
General Fund	$2,376,667
Total General Fund	$2,566,667

Water / Sewer Funds	$590,447

TOTAL	$3,157,114

In order to fund this proposal, and to ensure that a similar balance of cash reserves is maintained for General Fund, i.e., no cash deficit budgeting, the following budget strategies have been adopted:

· In line with the funding sources identified in the earlier Council report, salaries for Economic Development have been charged direct to their operations, resulting in a cost to Industrial Land Reserve for 2019/20 of $297,331

· Water and Sewer Funds will support increases within their existing operating surplus

· Waste Services will support increases within existing budget

· The remainder of the proposed increase has been absorbed through ensuring that there are no increases to budgets for non-salary items (excluding known contracts and maintenance) in 2019/20 and utilisation of increased general revenue and new sub-divisions rates income.

The draft 2019/20 budget demonstrates that the salary system review does not impact on the cash result for the 2019/20 budget. Most importantly to note is that the salary system review is not funded through any SRV dedicated funds.

Council Rating Structure

The proposed rating structure for the calculation of rates is outlined in table 6 below.

Table 6: Rating Structure

Category	Sub -Category	No of Assessment	Land Value	Ad Valorem (c in $)	Base Rate Amt	Base Rate % age	Yield Base Rate	Yield Ad Valorem	Total Rate Yield ($)
Residential	Ordinary	53,893	$14,390,640,977	0.24006	$641	50.00%	$34,545,439	$34,546,173	$69,091,611
	Non-Urban	964	$25,633,950	0.24006	$50	43.92%	$48,200	$61,537	$109,737
Farmland	Ordinary	730	$680,354,730	0.20826	$641	24.83%	$467,930	$1,416,907	$1,884,837
	Dairy Farmers	129	$165,313,000	0.10678	$641	31.90%	$82,689	$176,521	$259,210
Business	Ordinary	160	$1,996,960	0.34945			$0	$6,978	$6,978
	Commercial/Industrial	1,736	$775,621,037	0.33644	$641	29.90%	$1,112,776	$2,609,499	$3,722,275
	Nowra	364	$168,691,000	0.73460	$641	15.85%	$233,324	$1,239,204	$1,472,528
		57,976	$16,208,251,654				$36,490,358	$40,056,819	$76,547,177

Rate Relief for Drought-Affected Farmers

In September 2018, Council gave public notice of proposed financial assistance measures for drought affected farmers. It was proposed that the City be defined as drought-affected while its parishes are identified by the Department of Primary Industries’ Combined Drought Indicator (CDI) as being in the ‘Drought Affected (weakening)’ phase or worse. As at 31 March 2019, 12 parishes were identified as experiencing Intense Drought, 19 parishes as experiencing Drought and 17 parishes as Drought Affected.

Given the continuation of drought conditions in the City, Council proposes to continue its drought assistance measures, except for the Mayor’s Relief Fund “Drought” appeal, for another year.

Loan Program

The draft General Fund Budget for 2019/20 includes loan funding of $3.16M for major capital works projects. Council’s proposed General Fund Loan Program for the next two years is as follows:

Table 7: Loan Program

Council’s projected loan repayments (principal and interest at 4%) for future years – including the above proposed borrowings are:

Table 8: Borrowings

Total loan balances for General Fund are shown Graph 1 below:

General Fund - Strategic Projects Reserve Strategy

It is proposed to transfer the whole of the dividend from Shoalhaven Water to the Strategic Projects Reserve, as is undertaken each year. Transfers to and from the Strategic Projects Reserve and the estimated balances are indicated in Table 9 below:

Table 9- Strategic Projects Reserve

The recurring transfers from the Reserve include the repayment of loans for the construction of Braidwood Road and a transfer to the Coastal Management and Infrastructure Reserve.

It should be further noted that, given the extensive capital works program for Shoalhaven Water’s Sewer Fund, there will be no sewer dividend for three (3) years from 2017/18.

Shoalhaven Water – Water and Sewer Fund

Table 10 below summarises the capital programs for the water and sewer fund and include:

Shoalhaven Water – Water Fund

Table 10- Water fund

Shoalhaven Water – Sewer Fund

Table 11- Sewer fund

Shoalhaven Water Operating Budget

The Operating Results for the Water Fund are budgeted to be:

Table 12- Operating results -Water Fund

The Operating Results for the Sewer Fund are budgeted to be:

Table 13- Operating Results-Sewer Fund

Draft Fees and Charges

A summary of changes to proposed Fees and Charges for 2019/20 was presented to Councillors at the Councillor Briefing held on 28 March 2019 and included:

• A list of proposed new fees and charges, including those that may replace previous fees or charges.

• A list of fees and charges where there has been a decrease or increase above 5%

The Draft Fees and Charges document has been updated to reflect the current adopted fees of Council.

Water and Sewer Charges

A report on proposed water and sewer charges is being presented as a separate report to this Ordinary Meeting. Below is a summary of the charges:

Resourcing Strategy

The Resourcing Strategy contains the Workforce Strategy, Asset Management Plan and the Long Term Financial Plan. This Resource Strategy has previously been provided to the community for comment. Changes have been made to the Long Term Financial Plan to reflect updated financials for the future years. The Long term financial plan demonstrates Council’s commitment to continuing to meet the Fit for the Future benchmarks and shows Council’s continued commitment to supporting a sustainable financial future.

Community Engagement

A comprehensive community engagement strategy has been prepared to ensure that the community can be informed about the contents of the Draft Delivery Program and Operational Plan and Council’s budget.

The engagement strategy includes a range of communication activities including advertising, media opportunities, digital and hard copy promotions and information distribution, contact through CCBs and Business Chambers and through Council’s community engagement portal “Get Involved”.

Council will also hold several drop-in information sessions to enable the community to speak in person about the plans and budget. Like last year these information sessions will also include a range of other Council projects and plans that the community may be interested in understanding and making comment about.

The information sessions will be held as follows:

Date	Location
Thursday 9 May 2019	Nowra – School of Arts
Thursday 16 May 2019	Berry – School of Arts
Tuesday 21 May 2019	Ulladulla – Civic Centre
Wednesday 22 May 2019	Culburra Beach – Banksia Hall

Submissions will be able to be provided to Council in person, online through our community engagement page, via email or in written form.

All CCBs and Business Chambers have been notified of these meetings and the community will be notified through advertising over the next few weeks.

Financial Implications

Council’s (one year) Operational Plan is a critical document that allocates funding towards works and services delivered by Council to its community to achieve the goals and objectives set in the Community Strategic Plan and Delivery Program.

Council’s fees and charges make up a significant proportion of Council’s total revenue. Ensuring that all fees and charges are set at the appropriate level is an important exercise to recover costs and ensure patronage of Council facilities.

The full budget document from the Delivery Program and Operational Plan is provided within the Councillor Information Folder and distributed to Councillors in hard copy. Any changes Council may wish to make to the budget that are not resolved tonight can be considered for inclusion in conjunction with submissions received during the public exhibition period.

Ordinary Meeting – Tuesday 30 April 2019

Page 75

CL19.115 Donations Policy

HPERM Ref: D19/113275

Group: Finance Corporate & Community Services Group

Section: Human Resources, Governance & Customer Service

Attachments: 1. Summary of Submissions - Exhibition of Draft Donations Policy ⇩

2. Revised Draft Donations Policy ⇩

3. Draft Donations Application Form ⇩

4. Full copies of Submissions received - Donations Policy Exhibition (councillors information folder) ⇨

Purpose / Summary

To provide an overview of submissions received during the public exhibition and a revised Draft Donations Policy for adoption.

Recommendation

That Council

1. Note the details of the submissions received during the public exhibition period as outlined in the report.

2. Adopt the Revised Draft Donations Policy and Application Forms provided as attachments to the report.

3. Determine that contributions for the following projects/programs be administered by the Council separately from the Donations Policy given they are ongoing arrangements which have other eligibility requirements, and which are paid to all like organisations in the Shoalhaven.

a. Community Consultative Bodies ($500 each per year)

b. School Citizenship Awards ($100 each per year)

c. Surf Life Saving Clubs providing Patrolling services ($5,000 each per year)

d. Illawarra Academy of Sport ($15,000 per year)

4. Advise all current recipients of the changes to the Donations Policy and timetable for applications for 2019/2020.

Options

1. As recommended

Implications: The new Donations Policy will achieve greater transparency and accessibility to donations by community organisations and groups across the Shoalhaven, in alignment with the Council’s Community Strategic Plan. The policy will be implemented immediately, and applications called for the 2019/2020 to allow determination by Council by the end of the current financial year.

2. The policy is adopted with further amendments

Implications: Not known

3. Not adopt the Policy at this time

Implications: Should the Council not adopt a new policy at this time, direction will be required as to how the donation funding for 2019/2020 will be dealt with under the current Policy (POL12/299).

Background

At the Meeting of the Strategy and Assets Committee held on 12 March 2019, Council considered a report outlining the Draft Policy and resolved (MIN19.13)

“That:

1. The Draft Donations Policy and Procedures (Attachment 1 to the report) be placed on public exhibition for a period of four (4) weeks to obtain community feedback on the proposed Policy

2. All current recipients of donations be advised in writing of the public exhibition and their ability to make comment.

3. A report be provided at the completion of the exhibition period, outlining the submissions received and a Final Draft Policy and Procedures for adoption by the Council.”

As outlined in the previous report to the Strategy and Assets Committee, the amendments to the policy are the result of previous resolutions of the Council and calls for a thorough review of the Policy. They aim to achieve greater transparency and accessibility to funding by community organisations and groups across the Shoalhaven and in alignment with the Council’s Community Strategic Plan.

The Draft Donations Policy was exhibited from 14 March to 12 April 2019. During this time current recipients were advised of the Draft Policy and invited to make submissions.

During the submission period the draft policy was viewed 238 times by 183 different people. Seven (7) submissions were received via the website and a further five (5) were received separately, amounting to 12 submissions in total. Two (2) of the submissions were from Council Staff and all other submissions were from those who have received donations from Council in previous years.

Some applications for funding have been submitted early for 2019/2020 funding as part of, and during the submission process. Where relevant comments about the new policy have been included with applications these have been noted in the submission table. Those applications for funding are being held in abeyance until a Policy decision is made by Council.

Submissions:

A table outlining the submissions and staff comments received during the exhibition period have been provided as Attachment 1 to this report, with the original copies of the submissions provided for Councillors as Attachment 4 (Under Separate Cover).

In summary, the submissions cover the following main points:

· Comments about continued, guaranteed and ongoing funding

Five (5) of the submissions referred to the preference for funding for a number of years or permanently, rather than on an annual basis. Some expressed concern that the Allocated Donations that their organisations have relied upon in past years would no longer be guaranteed under the new policy. It was felt that this uncertainty has the potential to disincentivise volunteers and affect the sustainability of ongoing projects.

An annual applications process proposed in the policy is a distinct difference to current practice. The reason for the proposed amendment to the process is to achieve the most effective use of donation funds arising from being able to compare all eligible applications for projects/services in the Shoalhaven.

Under the present policy the Allocated Donations are not technically “recurring”; as they are voted for annually by the Council during the adoption of the DP/OP and therefore are not guaranteed from year to year.

It is acknowledged that reliability of recurrent funding for some applicants for a number of years would assist with their planning and resourcing, but in doing so the benefit to those organisations has to be weighed against accessibility and equity of funds to other organisations.

Should Council so resolve, donations could be granted for more than one (1) year (depending on the organisation meeting acquittal and other policy requirements prior to subsequent funding being paid). If Council determines to do so and move away from the recommended annual application process, Council will need to specify in the policy:

o To which category/ies of donations the recurring funding would be made available,

o The number of financial years which the recurring funding may be made available should the applicant meet acquittal and other policy requirements. This period of time should not extend into financial years past the current term of the Council.

When contemplating these issues as an ongoing Policy directive, Council needs to not only consider those organisations who have received donations in the past, but also those that haven’t, and what may be the optimal outcome for Shoalhaven residents from the available budget.

One (1) submission from the City of Shoalhaven Eisteddfod commented on the donations program being based on a financial year, as this was reported as creating a delay in funding for those organisations which work on a calendar year. The proposed policy does not alter funding timing for those organisations which have received ‘allocated donations’ in the past. Whilst this issue is acknowledged, there are requirements for the Council to work on a financial year for budgeting purposes and the donations will apply for any project or activity within a financial year. Forward planning will be required by organisations, particularly by those which have events in the beginning of the calendar year.

· Comments about wording of the policy

Some of the submissions sought clarification on specific provisions of the policy, highlighting that some clarifying amendments were required.

The revised Draft Policy, including those highlighted amendments is provided as Attachment 2 to this report

Those amendments (highlighted in yellow in the Policy) are as follows:

o Amendment to point Four (4) under the Funding Limitations (page 2 of Policy) to clarify that Applicants in receipt of Council donations or grants (whether funds or in-kind) in a given financial year are not eligible to apply for further Council donations or grants for the same project or program in that same year.

o Amendment to point Five (5) under the Conditions to clarify that a failure to comply with requirements may limit consideration for funding in subsequent years.

· Comments about the application form – length and complexity.

At the Ordinary meeting of 26 March 2002, Council resolved to “Adopt the draft policy and guidelines and apply it to all requests for financial assistance, including those organisations identified in the Management Plan”, i.e. the now DP/OP (MIN. 282/2002).

Over time the implementation of this requirement has been relaxed, with a consequent loss of transparency and accountability. The present proposal to require written applications of all organisations seeking funds marks a return to Council’s original position and improve the governance around the expenditure of the funds.

In response to submissions from three (3) organisations and comments made by Councillors at the March Strategy and Assets Meeting, the application form has been amended to make applications simpler and clearer.

The amended Draft Application Form is now provided as Attachment 3 to this report. The amendments are indicated in the Draft Form and in summary the amendments are:

o Reformatting the location of questions within the form to a more logical and easier to follow arrangement of questions,

o The provision a checklist at the back of the form,

o Breaking up the form into more distinct parts for the different categories,

o Rewording of a number of questions to ‘plain English’,

o Removal of questions that were identified as not essential,

o The Budget Form has been moved to the back as an example of a Budget to be submitted. This will allow the applicants to submit existing documentation they have on their budgets without having to transpose into the Council form.

It is acknowledged that the form requires more detailed information than that which has been required by Council to secure funding in the past.

The application form needs to strike a balance between simplicity and obtaining enough details to make fair and informed decisions on the allocation of public funds. The information requested is sought to give Council sufficient understanding why the funding is sought from Council and the project/activity being funded and will limit assumptions being made in the assessment of competing applications for funding.

Information sessions will be arranged, and guidance made available to assist donation applicants, and where an application is submitted that is insufficient in detail, the application will be afforded an opportunity to address those issues.

Separation of Ongoing Funding Programs

As outlined in the report to the March Strategy and Assets Committee, the policy is not proposed to apply to those current ‘Allocated’ donations where the Council has traditionally provided funding to all providers of a service function in the Shoalhaven. They include

o School Citizenship Awards ($100 each per year)

o Surf Life Saving organisations providing volunteer patrol services ($5,000 each per year)

o Recognised Community Consultative Bodies ($500 each per year)

o Illawarra Institute of Sport. ($15,000 per year)

This is in recognition of the Council’s commitment to provide ongoing funding for those activities where all of the providers of the activity or service within the Shoalhaven have been given the same level of funding for an activity which clearly aligns with the objectives of Council.

Process and timetables for the 2019/2020 Donation and further years.

Action	When
Adoption of Policy	30 April 2019
Correspondence to all current recipients	W/E 3 May 2019
Applications Open /Advertising commences	3 May 2019
Information/Drop in Sessions for applicants	6-17 May 2019
Applications Close	24 May 2019
Review of Applications – Report to Strategy and Assets Committee for determination	11 June 2019

For 2020/2021 onwards, the Application period will commence in February each year and remain open for an extended period of six weeks. A report will be provided to the Council determining donation recipients prior to the end June each year.

Community Engagement

Once Council has adopted the Policy a range of communication mechanisms will be utilised to inform current recipients and others of the opening of the application process. Guidance and support will be offered to potential applicants to assist in the transition to the new arrangements.

Policy Implications

It is noted that in addition to donations, there are a number of grants and opportunities for funding provided by Council. The draft Donations Policy is framed to re-work the current ‘allocated’ and ‘unallocated’ donations.

It is suggested that resourcing should be provided to present a combined presence or portal facilitating the sharing of information on all grant and funding opportunities made available by the Council and how access to those funds.

Financial Implications

It is envisaged that the budget for donations ($309,880) will remain at the current levels, with the funding being split across the categories within the Policy.

Ordinary Meeting – Tuesday 30 April 2019

Page 111

CL19.117 Collaboration with Corrective Services NSW Community Corrections Agency - Opportunities for Offenders to contribute to improving assets in the Community

HPERM Ref: D19/85819

Group: Assets & Works Group

Section: Works & Services

Attachments: 1. Legal Document - Memorandum of Understanding - Corrective Services NSW Offender Program ⇩

Purpose / Summary

Explore opportunities to work together with Corrective Services NSW in mutually beneficial activities to enhance the City’s assets.

Recommendation

That Council note that at the meeting with Correctional Services on 9 April 2019 the following actions were agreed:

1. Re-establish regular meetings/catch-up with Community Corrections and Council. - Community Corrections to be the principal point of Contact for Corrections in general.

2. Council will assign a single point of contact for Community Corrections to ensure smooth collaborations.

3. Considerations be given to the refreshment of the Current Memorandum of Understanding to include Community Corrections.

4. Through Council’s extensive community network make bi-annual approaches to local groups who may have need/requirement for a labour program and that would be suitable for a community corrections program.

Options

Nil

Background

On 11 July 2011 Council (External Agency) entered into a MoU with Correctional Services NSW for the South Coast Correctional Centre (SCCC) (the Centre) which seeks to “enter into an arrangement by which the External Agency will actively utilise inmates from the Centre in projects that develop community facilities (the “Project”)”.

The current MoU is provided as attachment 1

Essentially the MoU sates that Council will provide a project, access to a site, and consumables.

The SCCC will provide training, equipment, supervision, and signage.

At its Ordinary Meeting on 29 January 2019 Council resolved as follows (MIN19.17):

That a report be provided to Council on additional operational areas in which Council, as a community service work partner, can work with Corrective Services NSW Community Corrections Agency to provide opportunities for offenders to contribute to improving assets in the community, as well as providing effective cost savings to Council.

At the Ordinary Meeting on 26 February 2019 Council resolved as follows (MIN19.71):

That Council through the GM and Mayor instigate a meeting at the earliest opportunity with the following to discuss the way forward in activating programs for those offenders who are eligible to work outside on community programs:

1. Mr Mick Reid (Governor of South Coast Correctional Centre)

2. Mr Darren Hill (Correction Services Operation Manager)

3. Ms Donna Hume (Manager of Offenders Services Programs)

4. Ms Cathy Bland (Community Correction Manager)

5. Clr Gash

6. Clr Watson

7. Director of Assets & Works

8. Economic Development Officer

On Tuesday 9 April this meeting was held. The attendees were;

Clr Amanda Findley (Mayor, Shoalhaven City Council)

Clr Kaye Gartner (Councillor, Shoalhaven City Council)

Stephen Dunshea (Acting General Manager, Shoalhaven City Council)

Mick Reid (Governor of South Coast Correctional Centre)

Darren Hill (Correction Services Operation Manager)

Cathy Bland (Community Correction Manager)

Nerice Low (Community Services Administrative Assistant)

Paul Keech (Director, Assets & Works, Shoalhaven City Council)

Greg Pullen (Economic Development Manager, Shoalhaven City Council)

Discussion took place on the current and ongoing capacity for Council to engage with Corrections for community programs.

Governor Mick Reid advised that the South Coast Correctional Centre is currently at its maximum allowable participation in Custodial Programs and that there is very limited capacity for expansion.

Cathy Bland from Community Corrections gave an update on the current capacity for Community Programs. Community Correction orders are on the increase in a general sense and each area is dependent on the sentencing practice of local Judges.

Locally Community Corrections work closely with the Corrections Centre in respect to current program capacity, and the Community Corrections staff are the one point of contact for Council with respect to potential projects.

Current Corrections demand requires more sites in the greater Shoalhaven including locations at Ulladulla, Milton and Sussex Inlet with other sites required as demands change.

Suggested project sites were discussed, with the extent of works including litter and rubbish collection, landscape and other minor maintenance where the works proposed are in addition to Council’s regular scheduled maintenance programs.

Actions from the meeting are as follows:

1. Re-establish regular meetings/catch-up with Community Corrections and Council. - Community Corrections to be the principal point of Contact for Corrections in general.

2. Council will assign a single point of contact for Community Corrections to ensure smooth collaborations.

3. Considerations be given to the refreshment of the Current Memorandum of Understanding to include Community Corrections.

Meeting closed at 4.15pm

Community Engagement

Nil.

Financial Implications

Nil.

Risk Implications

Minimal.

Ordinary Meeting – Tuesday 30 April 2019

Page 130

CL19.120 Development Application No.18/1844 – 120 Macleans Point Road – Lot 653 DP 27855

DA. No: DA18/1844/4

HPERM Ref: D19/111339

Group: Planning Environment & Development Group

Section: Development Services

Attachments: 1. Recommended Conditions of Consent (under separate cover) ⇨

2. Boarding House Management Plan (under separate cover) ⇨

3. Boarding House Rules ⇩

4. Proposed Strata By-laws ⇩

5. Council Report - 2 April 2019 (under separate cover) ⇨

6. Planning Report (under separate cover) ⇨

Description of Development: Construction of two (2) boarding houses comprising 12 boarding rooms and a manager’s residence and strata title subdivision

Owner: Thunderace Holdings Pty Ltd & Second Owl Pty Ltd

Applicant: PDC Planners

Notification Dates: 8 August 2018 and 23 August 2018

28 August 2018 and 11 September 2018 to Sanctuary Point Community Pride

No. of Submissions: 7 in objection

Nil in support

Purpose / Reason for consideration by Council

On 2 April 2019, the Development and Environment Committee resolved to defer consideration of DA18/1844 subject to the provision of a supplementary report addressing the following matters:

a. restrictions on smoking in the area near the nursery/garden centre

b. stormwater

c. the ongoing management of the boarding house

Furthermore, that the matter be brought to the April Ordinary meeting of Council.

Recommendation

That Development Application No.18/1844 be determined by way of approval subject to the imposition of conditions of consent as contained in Attachment 1.

Options

1. Approve the Development Application (DA) in accordance with the recommendation.

Implications: Approving the DA will enable the provision of affordable housing in an appropriate location. There are third party appeal rights through the NSW Land and Environment Court (L&EC).

2. Refuse the Development Application (DA)

Implications: Council would have to provide reasons for refusal to form part of the determination. The applicant would have the ability to request a review of any refusal by Council and / or pursue an appeal through the NSW Land and Environment Court (L&EC).

3. Alternative recommendation.

Implications: Council will need to specify an alternative recommendation and advise staff accordingly.

Figure 1 - Location Map with Aerial Overlay

Background

Proposed Development

It is proposed to construct two (2) attached boarding houses, one with seven (7) rooms and the other with five (5) rooms and a manager’s residence. It is also proposed to Strata subdivide the development to create two (2) strata lots.

Lot 1 will contain the following:

- Two (2) single rooms and five (5) double rooms, including one accessible room, all of which will be self-contained. Subtotal – seven (7) boarding rooms, accommodating a maximum of twelve (12) persons.

- A communal living area.

Lot 2 will contain:

- Five (5) double rooms and one (1) manager’s residence, all of which are self-contained. Subtotal – five (5) boarding rooms, accommodating a maximum of ten (10) persons, and a manager’s residence.

- A communal living area.

Total – twelve (12) rooms, accommodating 22 persons and a manager’s residence.

The communal areas will contain the shared parking spaces, outdoor recreation areas, letterbox, bin storage, fencing and landscaping. As per the submitted plans 1.8m high fencing is proposed along the common boundaries. The applicant has commented within the statement of environmental effects that:

“The proposed boarding houses are intended to provide suitable accommodation for individuals and couples who are on low incomes. The proposed facilities of the boarding house ensure that all occupants are provided with a high standard of internal and external facilities.”

Council Resolution

On 14 August 2018 the Development & Environment Committee resolved that DA18/1844 be ‘called in’ to Council for determination due to the significant public interest.

The Development & Environment Committee subsequently considered DA18/1844 on 2 April 2019 and resolved that:

1. Council defer consideration of DA18/1844 120 Macleans Point Road, Sanctuary Point – Lot 653 DP 27855, pending the General Manager providing a supplementary report to Council in respect of

a. restrictions on smoking in the area near the nursery/garden centre

b. stormwater

c. the ongoing management of the boarding house

2. The report be brought to the April Ordinary meeting of Council.

Issues

Restrictions on smoking in the area near the nursery/garden centre

The area referred to in the Council resolution is detailed on the submitted plans as a ‘communal open space’ for the benefit of both boarding houses.

In response to the resolution the applicant has submitted the proposed Strata By-laws (see Attachment 4), an amended Boarding House Management Plan (hereafter referred to as the Management Plan – see Attachment 2) and amended Boarding House Rules (hereafter referred to as the Rules – see Attachment 3), outlining in an email to Council dated 5 April 2019 that:

We can regulate smoking on the property with strata bylaws to address Council’s concerns. I don’t think the Council can enforce or require a condition of consent involving smoking on privately owned land as I would suggest that this possibly isn’t within its jurisdiction. So, by us voluntarily including limitations on smoking within our plan of management (which will be a stamped approved document forming part of the consent) and in our strata bylaws, this is as about as good as it can get with respect to addressing that concern. We are happy to ban smoking on site.

The applicant is correct in that a development consent cannot impose planning conditions relating to smoking. The condition would not be for a planning purpose and would not satisfy what is known as the Newbury Test. A consent however can reference a Management Plan and Boarding House Rules.

The following is an excerpt from the proposed Strata By-laws pertaining to the prohibition of smoking within the premises:

9 Smoke penetration

(1) An owner or occupier of a lot, and any invitee of the owner or occupier, must not smoke tobacco or any other substance within a lot.

(2) An owner or occupier of a lot, and any invitee of the owner or occupier, must not smoke tobacco or any other substance on the common property.

It is made clear in the proposed Strata By-laws that smoking will be prohibited both within the proposed boarding houses and the common property areas. Further still, the prohibition of smoking is detailed within the Management Plan and Rules which will form part of the approved documentation. The following conditions have been recommended and can be found in Attachment 1:

45. Strata Scheme - By-laws

Both the approved Boarding House Management Plan and Boarding House Rules are to be incorporated into the by-laws as created under the Strata Schemes Management Act 2015.

51. Management Plan

The approved development must be managed in accordance with the approved Boarding House Management Plan and Boarding House Rules in perpetuity.

Stormwater

The applicant in an email to Council dated 5 April 2019 has provided the following additional commentary regarding stormwater management for the development:

1) At the moment there are no stormwater controls on the lot.

2) The neighbours on our high side have an easement for stormwater drainage through our site.

3) The stormwater plumbing we propose to install will, in my opinion, dramatically improve the situation with respect to discharge of stormwater from the site. In this regard, OSD is proposed both within rainwater re-use tanks and by means of an underground OSD pit in the carpark. Pit and pipe drainage is proposed through the site also.

A Drainage Details plan was submitted with the application prepared by Jordan Mealey & Partners Pty Ltd (Job No.20180092, dated 14/6/2018), see an excerpt at Figure 2. The proposed stormwater drainage system was reviewed by Council’s Development Engineer who raised no concerns with the concept design, which included on-site detention measures in the form of a rainwater tank and underground pit within the carpark.

Conditions of consent were recommended by Council’s Development Engineer requiring greater detail prior to the issue of a Construction Certificate. Those conditions have been included within the recommended conditions of consent found in Attachment 1.

The design is consistent with the requirements of Chapter G2 Sustainable Stormwater Management and Erosion/Sediment Control within the Shoalhaven DCP 2014.

Figure 2 – Excerpt from Drainage Plan

The ongoing management of the boarding house

The applicant has submitted a revised Management Plan and Rules to address the resolution of Council. The Management Plan ‘sets out the various requirements and responsibilities of management and residents’ and is supplemented by the Rules. Both documents will form part of the approved documentation and must be adhered to for the life of the development.

Further to the above, the proposed Strata Title By-laws have been submitted to Council for its information. This includes clarification of the scope of influence of the manager who is to reside within proposed lot 1:

19 Compliance with directions of resident manager

All occupiers of each lot must comply with all directions of the resident manager located within lot 1.

This inclusion within the Strata By-law further clarifies that the onsite manager, whilst residing within the manager’s residence of proposed lot 1, is responsible for the management of both boarding houses. Should one of the allotments exchange hands in future, the scope and responsibilities of the manager remain applicable to both proposed lot 1 and lot 2.

With regard to the Strata Title subdivision of the development and how this relates to the management of the boarding houses, the applicant in an email to Council dated 5 April 2019 outlines the potential benefits of such an arrangement:

The proposed strata subdivision not only serves to address the commercial / ownership aspects of the project but it can also be used as a way of ensuring better management of the facility compared to a property with no strata titling. Not only will we have conditions of development consent to comply with, but occupants will need to abide by strata bylaws.

As for management of the property, we accept and warmly welcome conditions of consent that require a manager to reside on the property within the managers unit. The entire development (regardless of which strata lot it sits upon) needs to comply with the development consent. A bylaw has been proposed that effectively states all occupants of boarding rooms within both strata lots must obey the directions of the onsite manager. So again, two layers of protection there for the Council.

Planning Assessment

The DA has been assessed under s4.15 of the Environmental Planning and Assessment Act 1979 (EP & A Act). The original Council report and planning report can be found at Attachments 5 and 6.

Policy Implications

There are no Policy implications as a result of the development as proposed.

Financial Implications:

There are potential cost implications for Council in the event of a refusal of the application. Such costs would be associated with defending any appeal in the Land and Environment Court, should the applicant utilise appeal rights afforded under provisions of the EP&A Act.

Legal Implications

Pursuant to section 8.2 of the EP&A Act, a decision of the Council may be subject of a review by the applicant in the event of an approval or refusal. In the event that such a review is ultimately pursued (if the recommendation is not adopted) the matter would be put to Council for consideration.

Alternatively, an applicant may also appeal to the Court against the determination pursuant to section 8.7 of the EP&A Act.

Summary and Conclusion

Revised documentation has been submitted to Council addressing the resolution from the Development & Environment Committee on 2 April 2019. In this regard the following is noted:

· Occupants are to adhere to the Boarding House Management Plan and Boarding House Rules for the life of the development.

· The onsite manager is to ensure compliance with the Boarding House Management Plan and Boarding House Rules for both boarding houses for the life of the development.

· Smoking is to be prohibited within the premises as per the proposed Strata By-laws and in accordance with the Boarding House Rules.

· Stormwater is to be appropriately managed in accordance with the stormwater design.

Having regard to the above, approval is recommended subject to the imposition of suitable conditions of consent as attached to this report.

Ordinary Meeting – Tuesday 30 April 2019

Page 143

CL19.122 Quarterly review for compliance matters

HPERM Ref: D19/101651

Group: Planning Environment & Development Group

Section: Building & Compliance Services

Attachments: 1. List of penalties issued 1 January 2019 to 31 March 2019 ⇩

Purpose / Summary

At Council’s Ordinary meeting held on 13 November 2018 it was resolved to receive a detailed quarterly report on compliance activities (MIN18.907).

This report provides information on the period January – March 2019 (third quarter).

Recommendation

That Council receive the quarterly report on compliance matters for information.

Options

1. Council receive the report for information

Implications: Nil

2. Council receives the report and provides additional direction for future reports

Implications: Any changes or additional matters can be added to future reports.

Report

Compliance activities are completed by the following Teams within the Planning, Environment and Development Group:

(a) Compliance Team: Development compliance matters including unauthorised development, development not in accordance with development consent, land and water pollution incidents (including building sites), land use management issues, fire safety and swimming pool safety issues.

(b) Environmental Health: Pollution incidents (noise and water), environmental incidents, food shops and the operation of on-site sewage waste management facilities.

(d) Rangers: Animal control, littering, unauthorised camping, rubbish dumping and other environmental offences.

This report provides Councillors with an update on the penalties issued (number, type and ticket value), penalty reviews dealt with by the panel and any Local or Land and Environment Court matters determined or progressing.

This report relates to January – March 2019 (third quarter).

Penalties issued during the period

A combined total of 1814 penalty notices were issued by the Teams during the period. These penalties have a face value of $523,447. Historically Council stands to receive approximately 70% of this ticketed figure. A total of 209 cautions were also issued during the period. Attachment 1 to this report provides a breakdown of the penalties and cautions issued.

The following is a summary of the penalties issued for each team:

Team	Number Issued	Total Amount	% of total amount	Cautions issued
Compliance	17	$36,160	6.9%	11
Compliance – Fire Safety	1	$1,000	0.2%	0
Compliance – Pools	3	$4,100	0.8%	11
Environmental Health	4	$3,080	0.6%	0
Rangers – Animal issues	85	$33,460	6.4%	26
Rangers – Environmental issues	61	$100,550	19.2%	2
Parking	1641	$344,597	65.8%	159
Sewer Management Facility	1	$500	0.1%	0
Total	1814	$523,447	100%	209

This is historically the largest quarter for penalty notices. The figures also include the penalties issued at Hyams Beach over the January holiday period.

Penalties related to Compliance issues

The following details are provided in relation to the 17 compliance penalty notices issued:

(a) One Penalty Notice issued to the Contractor for extensive construction works undertaken prior to the issue of a Construction Certificate. Development not in accordance with consent – any other case – corporation ($6000) – Bomaderry.

(b) One Penalty Notice issued to the Contractor for development not in accordance with consent – Class 1a or 10 building – corporation ($3000) – Callala Bay. Whilst only 1 penalty notice was issued, the following five offences were identified:

i. Occupation of the subject premises by contractors without an Occupation Certificate;

ii. Work outside of consent hours;

iii. Placement of building materials and site fencing on Council reserve

iv. Waste not being contained on site

v. Sediment control issues

(c) One Penalty Notice issued to 1 owner for the use of mud brick workshop for habitable purposes – 2 owners - Development not accord consent – class 1a or 10 - Individual ($1500) – Huskisson.

(d) One Penalty Notice issued to 1 owner for unauthorised building works in heritage listed building – 2 owners – Development without development consent – class 1a or 10 building – Individual ($1500) Berry.

(e) One Penalty Notice issued to 1 owner for unauthorised demolition of fibro dwelling – 2 owners – Development without development consent – class 1a or 10 building – Individual ($1500) Vincentia.

(f) Four Penalty Notices issued one each to 4 different owners for use of four shipping containers for habitable purposes – 8 owners in total – Development without development consent – class 1a or 10 building – Individual ($1500 each) St Georges Basin.

(g) One Penalty Notice issued to 1 owner for unauthorised swimming pool – communal type lot with 7 owners – Development without development consent – class 1a or 10 building – Individual ($1500) Morton.

(h) One Penalty Notice issued to 1 occupier for unauthorised swimming pool –Development without development consent – class 1a or 10 building – Individual ($1500) Bangalee.

(i) One Penalty Notice issued to 1 occupier for merchandise stands, a merchandise cart and signage placed on Council land – Development without development consent - class 1a or 10 building – Individual ($1500) Huskisson.

(j) One Penalty Notice issued to Contractor for expose article/in/on/over road/let article be exposed at road without approval – Local Government Act ($330) - Callala Bay

(k) One Penalty Notice issued to 1 owner for the cleaning out of a dam on a rural (E2 and E3) property – 2 owners – fail to comply with prevention notice – class 1 officer – Individual ($4000) Kangaroo Valley.

(l) Two Penalty Notices one issued to each owner for fail to comply with the terms of a development control order – individual ($3000) Berry.

(m) One Penalty Notice issued to 1 owner for fail to comply with development control order – 3 owners – ($3000) Basin View.

Penalty infringement panel reviews

During the period, the review panel met on 24/01/2019 and considered one penalty infringement appeal. The following result was recorded:

(a) Development without Development Consent ($6000).

The offence related to the installation of a prefabricated habitable cabin over a registered easement, over a pressure sewer unit (PSU) and within the zone of influence to a sewer rising main. The penalty was issued to the company that installed the prefabricated cabin.

The installer refused to take responsibility for their involvement in the unauthorised works citing that the owner is responsible. The panel did not consider this reasonable and directed that the penalty was to stand.

The owner was not issued any penalty in this matter however, the building did need to be demolished and the Compliance Officer deemed this to be sufficient penalty.

Local or Land and Environment Court matters

(a) Jerberra Estate; this matter relates to unauthorised works at Lot 57 Invermay Avenue, Tomerong. This is contempt of Court proceedings against the owner who has failed to comply with the Courts order to clean up the premises.

The matter was heard on 25/02/2019. The Court has deferred the matter because it was not convinced sufficient steps have been taken to advise the owner. Council Officers have taken additional steps to advise the owner. The matter is scheduled to go back to Court on 27/05/2019. A further update will be provided at the next quarterly report in July.

(b) Water Pollution Matter: this matter relates to an appeal against Council’s notice for non-compliance with the pollution prevention notice. The prevention notice had required the owner to fence his land to prevent cattle entering the SEPP14 Wetlands and Crown Land that adjoin the Shoalhaven River.

This matter was heard in the Nowra Local Court on 13 February 2019. The owner was found guilty of the offence and fined $2000 and ordered to pay $1800 in court costs.

(c) Food premises – Vincentia (Local Court): this matter relates to providing false information to an authorised officer.

The matter was heard in the Nowra Local Court on 15/02/2019 where the defendant pleaded guilty and was fined $3000 and ordered to pay $500 in court costs.

(d) Food Premises – Nowra (Local Court): this matter relates to an appeal against Council’s penalty notice for non-compliance with the Food Standards Code concerning the cleanliness of the premises.

The matter was heard in the Nowra Local Court on 01/03/2019 where the defendant pleaded not guilty. This matter is listed for hearing on 19/09/2019.

Ordinary Meeting – Tuesday 30 April 2019

Page 155

CL19.123 Outcome of Industry Forum - Design Review Panel for Shoalhaven

HPERM Ref: D19/104915

Group: Planning Environment & Development Group

Section: Strategic Planning

Attachments: 1. Report - Outcome - Industry Consultation - Design Review Panel Establishment - Development & Environment Committee 5 March 2019 ⇩

2. Powerpoint Slides - Industry Forum / Information Session - Design Review Panel (under separate cover) ⇨

Purpose / Summary

Report the outcome of the industry forum / information session held on 1 April 2019 regarding the proposed use of a Design Review Panel for certain developments in Shoalhaven.

Recommendation

That Council

1. Note the outcomes of the industry forum / information session held on Monday 1 April 2019.

2. Proceed to trial the use of the Wollongong Design Review Panel for all SEPP 65 developments (residential flat buildings, shop top housing or mixed-use development that is 3 or more storeys and contains at least 4 or more dwellings) and other self-nominated developments for a 12-month period commencing 1 July 2019.

3. Notify development industry representatives of the proposed trial commencing 1 July 2019 for 12 months.

4. Receive a subsequent report towards the end of the 12-month trial period for Council to evaluate the success of the trial and options for a future Regional Design Review Panel.

5. Apply a 50% discount to the existing fee of $3,000 per meeting for the Design Review Panel during the 12-month trial period and allocate a budget for this in the 2019/2020 Council budget.

6. In addition to the Design Review Panel, Council staff investigate the option of a pre-lodgement design advisory service for certain scale developments and possible cost recovery options.

Options

1. Trial the use of the Wollongong Design Review Panel for all SEPP 65 developments and any other proponent-nominated developments for a 12-month period. Also investigate the option of a pre-lodgement design advisory service like the current Heritage Advisory Program.

Implications: This will enable Council to trial the services of an existing Design Review Panel for a 12-month period to determine whether the service is a beneficial process improvement for Council. This would ensure that individual panel members do not reside in or do business with the Council and would save further resources that would be required in alternate options. Use of a Panel would eliminate the need for expensive and reactive design referrals in the Development Application (DA) process, provide greater certainty and efficiency for developers, increase the design expertise among Council staff, and lead to better outcomes for the community. Current DA lodgement and pre-lodgement forms will need to be updated. They would also need to allow proponents of non-SEPP 65 developments to self-nominate for a referral to the Design Review Panel.

2. Not proceed with trialling the Wollongong Design Review Panel on a 12-month basis and commence a formal tender process for a new Design Advisory Service.

Implications: This option is not recommended. A Design Advisory Service would require the creation of a separate ongoing budget and development of processes and procedures for its use which is currently not identified in the Strategic Planning works program. A formal tender process would be required for the design advisory service. Using the Wollongong Design Review Panel would enable Council to learn from the existing processes and procedures for Design Review currently used by Wollongong City Council, rather than trying to establish a new process outside of the formal arrangements under SEPP 65 and the Apartment Design Guide which has a number of risks.

3. Not proceed with either option and leave current processes as is.

Implications: No further action will be taken, and current processes will remain. Council will still be required to carry out expensive and reactive design reviews for relevant DAs on a case by case basis. In the twelve months to March 2018 Council paid for three (3) urban design referrals/reviews for incoming development applications with individual costs from $3,432 to $6,050.

Background

On 11 December 2017, Council considered a report on the proposed establishment of a Design Review Panel for Shoalhaven. Council resolved to support the establishment of a Panel in principle, and to explore the possibility of establishing a joint Design Review Panel for the Illawarra-Shoalhaven region (MIN17.1042).

As part of this resolution, Council wrote to all councils in the region and the Illawarra Shoalhaven Joint Organisation (ISJO) to establish their interest in possibly establishing a regional Design Review Panel. All councils, existing Wollongong Panel members, and the region’s Planning Directors indicated support for a possible Regional Panel. Due to the Wollongong Panel being already well established, the region’s Planning Directors Group agreed in early 2018 to explore the possibility of expanding the existing Wollongong framework and making it available to Shellharbour, Kiama and Shoalhaven Councils. Shellharbour Council already started using the Wollongong Panel for several of their significant DAs, further signalling their support for a regional Panel to be established in the future.

At the August 2018 Development Committee, a report on the use of a Design Review Panel recommended that Council support the expansion of the Wollongong Design Review Panel for use by other councils in the Illawarra-Shoalhaven region, and commence a trial of the Wollongong Panel for relevant DAs. Council resolved to defer the trial to enable industry consultation to be undertaken (MIN18.611).

As part of the local industry consultation, Council wrote to 34 local industry representatives outlining the background to the Design Review Panel and asked them to provide any feedback during the 6 weeks between 29 November 2018 and 11 January 2019. A survey of 5 questions was prepared to guide the consultation and make the opportunity to provide feedback as easy as possible, rather than just asking for ‘submissions’. The survey link was included in the initial official correspondence from Council, and in a separate reminder email, however only 7 responses were received.

On 5 March 2019, the results of the ‘industry consultation’ were reported back to Council. The March 2019 report is provided as Attachment 1. Council resolved to defer the matter pending an industry forum / information session and that a subsequent report be provided no later than the April Ordinary meeting of Council (MIN19.116).

The industry forum / information session was held on Monday 1 April 2019 from 5:00-6:30pm. The forum was attended by six (6) development industry representatives, two (2) Councillors and relevant Council staff.

This report details the outcome of the industry forum to enable Council to decide on whether to proceed with the use of a Panel.

Design Review Panels - Recap

A Design Review Panel may be established under SEPP 65 (Design Quality of Residential Apartment Development). They do not have a decision-making function, but their advice does have legal weight and can be relied upon by the consent authority when determining a DA. They are typically made up of at least 3 independent panel members with expertise in architecture, landscape architecture, or urban design. Generally, panel members must not reside in or do business with the Council. Councillors, Council Officers or Council employees cannot be appointed as panel members.

The purpose of a Design Review Panel is to provide independent, impartial and expert design advice for certain DAs under the SEPP; residential flat buildings, shop top housing or mixed-use development that is 3 or more storeys and contains at least 4 or more dwellings. Council currently receives an average of 4 to 5 DAs that meet this requirement per year.

Panels consider how the design will achieve a quality outcome in terms of the nine (9) Design Quality Principles under SEPP 65: Context and neighbourhood character, built form and scale, density, sustainability, landscape, amenity, safety, housing diversity and social interaction and aesthetics. Panels assist councils in improving the design quality of development, strengthen the approval process and raise design standards across the built environment.

Under current processes, design issues for relevant developments are often only considered through the development process, through case by case referrals to independent consultants, which is expensive and leads to delays. The aim is to resolve these issues early by encouraging pre-DA discussions with a Design Review Panel.

Benefits for applicants

Benefits for Council

Benefits for the community

• Receiving independent, expert advice on the design quality of their project.

• Providing the flexibility needed to pursue improved outcomes.

• Reducing risks and expense by identifying weaknesses within the design at the earliest possible opportunity, when changes are less costly.

• Gaining a level of certainty with a proposal before investing in a detailed DA, reducing time delays and potential costs.

• Potentially raising project ambitions and increasing the confidence of clients and designers to pursue quality design outcomes.

• Gaining expert, independent advice on the design quality of a proposal.

• Offering confidence to decision-makers.

• Increase the design expertise of Council staff through time.

• Gaining assurance that new developments will make a positive contribution to the public realm, adjacent development and the surrounding community.

• Developing confidence in urban infill development which will support the development and viability of neighbourhood centres.

Industry Forum / Information Session

The recent industry forum / information session began with a presentation on the background and purpose of Design Review Panels, how they work in other Local Government Areas, and a range of frequently asked questions and answers. A copy of the presentation is provided in Attachment 2.

Discussion

Following the presentation, several attendees provided feedback on their experience with DAs that have been referred to Design Review Panels, both positive and negative.

Several attendees shared positive experiences with Design Review Panels. It was generally agreed that pre-DA engagement with a Panel provides better outcomes compared to only engaging once the DA is lodged. It was also reported that the Shellharbour trial of the Wollongong Design Review Panel at a pre-DA stage has been a positive experience for developers in Shellharbour.

In terms of fees, it was noted that considering the cost and scale of developments that traditionally go to such panels, the maximum fee of up to $3,000 set by the EPA Regulation was not seen as an issue impacting feasibility, particularly since these fees are already being borne through referrals to urban designers and modifications through the process. The maximum fee is already included in Council’s 2018/19 fees and charges. As an incentive to use the Panel during the trial period, it is recommended that if it proceeds that Council’s fee be discounted by 50% to $1,500 per meeting for the 12-month trial period. Following the feedback after the trial period, Council can reconsider an appropriate fee.

Having regard to the overall costs of the type of development where this is relevant, and the DA fees and reports required, it is noted (and acknowledged by a participant at the forum) that the fee is relatively insignificant having regard to the overall costs.

One attendee detailed a negative experience with a Design Review Panel where a suggested design improvement would have made the development unfeasible. Since the Panel’s recommendations are one of many matters to be considered by the consent authority, those specific comments were not taken on board to not impact the feasibility of the development.

Other suggested options

Two other options were suggested and discussed in place of establishing a Design Review Panel and the preferred approach of a 12-month trial of the established Wollongong Design Review Panel:

1. Follow the Kiama Municipal Council approach and have a smaller ‘panel’ of suitable consultants to draw from for design advice.

Kiama does not have an established Design Review Panel. Their current approach for design review is through the engagement of 1 or 2 local consulting architecture firms who provide design advice on relevant DAs on an ad-hoc basis. This includes both pre-DA advice and DAs that are under assessment.

Dealing with conflicts of interest has been an issue in the past where the consultant architect to Council has also been the proponent of a DA before the Council. If this type of approach is taken, it is imperative that any conflicts of interest are avoided by engaging consultants that do not live in or do business with Shoalhaven City Council.

2. Follow the Heritage Adviser approach and engage a single consultant to provide design advice on relevant DAs

It was suggested that Council engage a single consultant architect/urban designer/landscape architect to provide design advice in place of a panel, in a similar format to Council’s Heritage Advisor. The justification for this was that individual panel members rarely disagree with one another, so a single consultant may be more cost effective. (It may be the case that panel members have already discussed any differences in opinion at the site inspection or prior to the meeting with the applicant.) It is also noted that the Heritage Advisor also attracts limited funding under the Local Heritage Grants Program. Some councils such as Camden Council employ a Heritage and Urban Design Advisor in their Strategic Planning team; however, these roles generally assist with reviewing DAs and not providing detailed pre-lodgement advice.

If this approach is taken, Council would need to seek expressions of interest or go to tender for these consultancy services. Council would need to decide how much the consultant would be paid to advertise the role appropriately. It may also be difficult to attract interest from suitably qualified and experienced consultants to the position given the uncertain number of applications that could be referred over the next 12 months. For those who may express interest, it is also unlikely they would have the required ‘mix’ of expertise that is required for a Design Review Panel (architecture, landscape architecture, and urban design) – it is far more likely that a consultant would be a specialist in only one of these areas which may skew their advice towards one particular field. Any consultant engaged should also not live in or do business with Shoalhaven City Council to avoid any conflict of interest arising.

Preferred approach

Following consideration of the above options, it is still considered that the best approach at this time should Council wish to proceed is to trial the use of the Wollongong Design Review Panel for a 12-month period and provide a report back to Council on at the end of the period.

This is especially important if Council wishes to move towards establishing or supporting a Regional Design Review Panel for the Illawarra-Shoalhaven in the future, as per Council’s December 2017 resolution to “Explore the possibility of establishing a joint Design Review Panel for the Illawarra-Shoalhaven region” (MIN17.1042).

Alternate options and their associated implications are also discussed earlier in this report.

Community Engagement

There is no formal requirement for community consultation on the establishment of a Panel. However, development industry representatives have been consulted, including a feedback survey and a subsequent industry forum/information session.

Policy Implications

Engagement of any consultant will be in accordance with Council’s procurement policies and procedures.

Council resolved to investigate a Design Review Panel during the adoption of new Urban Design Controls for Nowra CBD.

The Design Review Panel will ensure appropriate design outcomes are realised for SEPP 65 and other nominated developments.

Financial Implications

A trial of the Wollongong Design Review Panel is likely to be more cost efficient and better value for the level of experience/qualifications as opposed to establishing a new panel for Shoalhaven given the inconsistency in number of applications that would require review.

The maximum fee payable for DAs to be referred to a Design Review Panel of $3,000 set under the EP&A Regulation 2000 is already included in Council’s 2018/19 fees and charges. At the industry forum, this fee was not seen as prohibitive to development given the size and scale of these applications. The fee would go directly towards payment of panel members for their expert design advice and other related expenses including travel.

Council could resolve to set a lower fee; however, this would require a separate budget to maintain the cost differences.

Ordinary Meeting – Tuesday 30 April 2019

Page 163

CL19.124 Draft Proposal for 2019-20 Water and Sewer Charges

HPERM Ref: D19/8454

Group: Shoalhaven Water Group

Section: Water Customer & Business Services

Purpose / Summary

The purpose of this report is to provide a draft proposal for water and sewer charges for the 2019/20 financial year for Council’s consideration and direction as to any other options that should be analysed prior to public consultation.

Recommendation

That Council adopt the following proposal for inclusion in the draft 2019/20 budget:

· Water Availability Charge 20mm – No increase from $82/connection per annum

· Water Usage Charge – No increase from $1.70/kL

· Sewer Availability Charge 20mm – Increase of $16.00 per annum from $848 to $864 per annum

· Sewer Usage Charge – Increase of $0.10/kL from $1.60 to $1.70/kL

Options

1. Adopt the recommended values.

Implications: This would result in a 1.2% increase to the total Shoalhaven Water account for water and sewer services for a residential household using 200kL/annum or 1.3% for a household using 159 kL/annum.

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

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

Background

The proposed 2019/20 water and sewerage budgets presented in this report have been derived by analysis of operating and capital drivers, with the aim of minimising increases in water and sewer charges. Ten and twenty year modelling of the funds have been undertaken.

The Delivery Program and Operational Plan (DPOP) forecast for 2019/20 water charges was to increase the water availability by $2 per 20mm connection and increase the usage for residential, commercial and CSO categorised properties by 5c per kilolitre. Updated modelling from the 2018 results, taking into account forecast income and likely development activity; a zero increase to these charges can be applied in 2019/20. Such action would result in no increases to those charges since July 2016.

As has been reported for many years, the sewer fund is heavily influenced by ongoing and significant capital works. This includes a number of current and future loan borrowings factored into the 20 year financial model. The sewer fund pricing path has included “above CPI” increases over a number of previous years to avoid price shock whilst funding backlog programs (Conjola Regional Scheme, Lake Tabourie, Kangaroo Valley and Currarong) and the upgrade works to Bomaderry/Nowra systems (REMS1B). The REMS contract work has been of significance to the sewer fund over the last few financial years and is now reaching completion. Planning for the connection of sewerage services to the village area of Woollamia and St Andrews Way Coolangatta are also factored into the capital works program.

Consistent with previous advice, no dividend is intended to be paid from the sewer fund due to the extensive capital expenditure commitments.

The current DPOP forecast an increase to the 2019/20 availability charge of $20 per 20mm connection and increase the wastewater usage for applicable commercial and CSO categorised properties by $0.10 per kilolitre. Following updated modelling, increases are still proposed but less than the earlier forecast (i.e. increase of $16 per annum instead of $20 per annum).

Summary

The effect of the above proposal on the Shoalhaven Water bill for a residential connection in respect of water supply and sewerage services is shown in Table 1 below;

Table 1: Proposed effect on Shoalhaven Water residential bill (water and sewerage)

		2018/19	2019/20	% Increase	$ Increase
Water Availability Charge		$82	$82	0.0%	$0
Water Usage Charges	Use per annum in kL	$1.70	$1.70	0.0%	Per annum	Per week	Per ¼ bill
	50	$167	$167	0.0%	0.0%	$0	$0
	100	$252	$252	0.0%	0.0%	$0	$0
	159	$352	$352	0.0%	0.0%	$0	$0
	200	$422	$422	0.0%	0.0%	$0	$0
	450	$847	$847	0.0%	0.0%	$0	$0

Add Sewerage		$848	$864	1.8%	$16
	Use per annum in kL				Per annum	Per week	Per ¼ bill
	50	$1,015	$1,031	1.5%	$16.00	$0.30	$4.00
	100	$1,100	$1,116	1.4%	$16.00	$0.30	$4.00
	159	$1,200	$1,216	1.3%	$16.00	$0.30	$4.00
	200	$1,270	$1,286	1.2%	$16.00	$0.30	$4.00
	450	$1,695	$1,711	.9%	$16.00	$0.30	$4.00

The average residential water consumption in the city is 159kL as shown in the shaded line above. It should be noted however that the nationally accepted benchmark for pricing is based on 200kL of residential water use. This provides a “normalised” benchmark for all utilities to compare pricing without correcting for differences in volumes of water supplied or tariff structures.

The latest available National Performance Benchmark (2017-18) together with the proposed bill for Shoalhaven and Sydney Water IPART determination for 2019/20 is shown in Table 2 below;

Table 2: Comparison Benchmark of Proposed Pricing

	Shoalhaven 2019/20	*Sydney Water 2019/20	**Australian Median 2016/17
200 kL	$1,286	$1,155	$1,401

* Sydney Water Final IPART determination 2016-20. Note an additional charge up to $35 may apply owing to desalination restart

**Australian Government National performance indicator P7 – Annual Bill based on 200kl Large Water Utilities

Community Engagement

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

Financial Implications

The draft proposal articulated in this report seeks to minimise price increases to customers while providing essential infrastructure in a sustainable manner.

A number of variables and uncertainties are contained within the financial models for water and sewer, including the timing of new infrastructure, interest rates, climatic factors and contract programming.

The draft pricing proposal for the key elements of water and sewer charges is however based on information current at this date. This may be further refined as factors change.

Total Cash and Investments	-$4,804,709
Grant Reserve	1,246,411	Receipt of grant income in advance of expenditure
Waste Disposal	-$508,256	March was not a rates instalment month
Sewer Fund	-$2,032,940	Expenditure on REMS 1B
Unrestricted General Fund	-$4,148,254	March was not a rates instalment month