Ordinary Meeting

 

Meeting Date:     Monday, 27 June, 2022

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

Time:                   5.30pm

 

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.

Shoalhaven City Council live streams it’s Ordinary Council Meetings and Extra Ordinary Meetings.  These can be viewed at the following link

https://www.shoalhaven.nsw.gov.au/Council/Meetings/Stream-a-Council-Meeting.

Statement of Ethical Obligations

The Mayor and Councillors are reminded that they remain bound by the Oath/Affirmation of Office made at the start of the council term to undertake their civic duties in the best interests of the people of Shoalhaven City and to faithfully and impartially carry out the functions, powers, authorities and discretions vested in them under the Local Government Act or any other Act, to the best of their skill and judgement.

The Mayor and Councillors are also reminded of the requirement for disclosure of conflicts of interest in relation to items listed for consideration on the Agenda or which are considered at this meeting in accordance with the Code of Conduct and Code of Meeting Practice.

 

Agenda

 

1.    Acknowledgement of Country

2.    Moment of Silence and Reflection

3.    Australian National Anthem

4.    Apologies / Leave of Absence

5.    Confirmation of Minutes

·      Ordinary Meeting - 6 June 2022

·      Extra Ordinary Meeting - 14 June 2022

·      Extra Ordinary Meeting - 16 June 2022

6.    Declarations of Interest

7.    Presentation of Petitions

8.    Mayoral Minute

Mayoral Minute

MM22.10..... Mayoral Minute - Retirement of Marine Rescue NSW Zone Duty Operations Manager (Illawarra) Bruce Mitchell ESM....................................................................... 1

9.    Deputations and Presentations

10.  Call Over of the Business Paper

11.  A Committee of the Whole (if necessary)

12.  Committee Reports

CL22.260..... Report of the Homelessness Taskforce Shoalhaven - 24 May 2022............ 2

HT22.15...... Additional Item - Social Housing

HT22.13...... Homelessness Interagency Submissions

13.  Reports

City Performance

CL22.261..... Delivery Program and Operational Plan, Budget 2022/23 - Exhibition Outcomes........................................................................................................................ 6

CL22.262..... Community Strategic Plan 2032 - Exhibition Outcomes.............................. 26

CL22.263..... Local Government Remuneration Tribunal - Determination of Councillor and Mayoral Fees 2022/2023............................................................................................ 42

CL22.264..... Code of Meeting Practice for Adoption........................................................ 47

CL22.265..... Code of Conduct and Code of Conduct Procedures................................... 51

CL22.266..... Petitions To Council Policy for Reaffirmation............................................... 54

CL22.267..... Community Donations Policy - For Adoption............................................... 59

CL22.268..... Loan Request - Murramarang Men's Shed Inc............................................ 85

CL22.269..... Ongoing Register of Pecuniary Interest Returns - May 2022...................... 87

CL22.270..... Investment Report - May 2022..................................................................... 89

City Futures

CL22.271..... Public Exhibition Outcomes and Finalisation - 2021 LEP Instrument Housekeeping Planning Proposal (PP062)........................................................................ 102

CL22.272..... Update & Next Steps - Planning Proposal PP045 - Sealark Road, Callala Bay   107

CL22.273..... Update on Proposed Strategic Property Purchase in Bomaderry............. 119

City Services

CL22.274..... Lease Renewal Part Lot J DP 39259 Egans Lane, Nowra to Egans Lane Pty Ltd.................................................................................................................... 120

CL22.275..... Proposed Lease to Currarong Arts and Crafts Society Incorporated - Part 23-25 Walton Way, Currarong.............................................................................. 124

CL22.276..... Proposed Lease Renewals - Buildings 1, 2 and 3, 78 St. Vincent St. Ulladulla    132

CL22.277..... Occupation of Part Lot A DP 343373, 173 Jacobs Drive, Sussex Inlet..... 150

CL22.278..... Transport for NSW Acquisition - Jervis Bay Road Intersection................. 163

CL22.279..... Classification of Land - Lot 319 DP 1265359 Somerset Avenue, South Nowra   167

CL22.280..... Exemption to Tendering - Basin Boardwalk Urgent Repairs..................... 169

CL22.281..... Exemption to Tendering - Property Management and Booking System - Holiday Haven.......................................................................................................... 171

City Development

CL22.282..... DA20/1762 - 127 Princes Highway, Ulladulla - Lot 6, DP 535004 - Mixed Use Development............................................................................................... 172

CL22.283..... RA22/1002 – 44-52 Coomea Street, Bomaderry – Lot 19-23 Sec 25 DP 2886    182

CL22.284..... RD21/1001 - 260 Mount Hay Rd (Priv) Broughton Vale - Lot 2 DP 4498. 189

CL22.285..... Access Agreement – Gas Pipeline – Shoalhaven Starches Bomaderry... 205

City Lifestyles

CL22.286..... Open Space Master Planning - Prioritising the Way Forward................... 206

CL22.287..... Crown Land Plans of Management - Outstanding Showgrounds - Progress to Public Exhibition.................................................................................................... 211

CL22.288..... Acceptance of Grant Funding - Create NSW Project Grant - Plant your Feet exhibition.................................................................................................................... 218

CL22.289..... Disability Inclusion Action Plan 2022/26 - Public Exhibition Outcomes.... 220

Councillor Conference Report

CL22.290..... Oz Water Conference 2022........................................................................ 236

CL22.291..... Waste Conference 2022............................................................................. 246

CL22.292..... Waste Conference 2022............................................................................. 256

14.  Notices of Motion / Questions on Notice

Notices of Motion / Questions on Notice

CL22.293..... Rescission Motion - CL22.252 - DA16/1465 - 173 Kinghorne St and 2 & 4 Albatross Rd - Nowra - Lot 1, 29 & 30 DP 25114...................................................... 267

CL22.294..... Notice of Motion - Living on the Coast Documentaries Sponsorship........ 268

CL22.295..... Notice of Motion - NSW Land Tax on Residential Properties.................... 270

15.  Confidential Reports

Reports

CCL22.20.... Exemption to Tendering - Property Management and Booking System - Holiday Haven

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.

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.

 

 


 

 Ordinary Meeting – Monday 27 June 2022

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MM22.10    Mayoral Minute - Retirement of Marine Rescue NSW Zone Duty Operations Manager (Illawarra) Bruce Mitchell ESM

 

HPERM Ref:       D22/253858

 

Recommendation

That Council:

1.    Write to Bruce Mitchell ESM congratulating him on his retirement and thanking him for 22 year’s service with Marine Rescue NSW.

2.    Together with Marine Rescue NSW, co-host a celebratory retirement lunch held in Bruce’s honour in recognition of his achievements.

 

 

Details

Bruce Mitchell ESM has served Marine Rescue NSW in a variety of roles since 1998, most recently as Duty Zone Operations Manager for the Illawarra, overseeing 160km of coast line from Wollongong to North Kioloa.

Over the past 20 years Bruce’s emergency management experience has seen him coordinate numerous, large, multiagency search and rescue operations, his distinguished contributions seeing him awarded the NSW Maritime Medal in 2009. 

When Marine Rescue NSW (MRNSW) began operations on New Year’s day in 2010 Bruce took on the voluntary role of Illawarra Regional Coordinator, working closely with the management team and volunteers from Port Kembla, Shellharbour, Shoalhaven, Jervis Bay, Sussex Inlet, Ulladulla and Kioloa to assist in the transition to new operating systems.

As Zone Duty Operations Manager Illawarra, Bruce was the point of contact between the volunteers and Headquarters being responsible for the coordination of rescue missions and the deployment of assets and personnel across the region.

In 2011 Bruce was awarded the Emergency Services Medal (ESM) in recognition of his dedication to the MRNSW mission of saving lives on the water and the many search and rescue operations he had been involved in coordinating.

I commend Mr Bruce Mitchell ESM on his dedication to MRNSW, and thank him for his tireless efforts over the past 20 years in providing lifesaving operational expertise and exceptional leadership in times of natural disaster and crisis.

Council, in conjunction with MRNSW, would like to celebrate and congratulate Bruce by co-hosting a retirement lunch to be held on the 30 June at the Shoalhaven Entertainment Centres’ Gallery Function Room. 

 


 

 Ordinary Meeting – Monday 27 June 2022

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CL22.260   Report of the Homelessness Taskforce Shoalhaven - 24 May 2022

 

HPERM Ref:       D22/240005

Attachments:     1.  Homelessness Interagency Submissions - Report to Homelessness Taskforce Shoalhaven Meeting - 24 May 2022  

 

 

HT22.13     Homelessness Interagency Submissions

HPERM Ref: D22/206113

RECOMMENDATION

That:

1.    The Council receive this report from the Shoalhaven Homelessness Interagency for information and consideration (attached).

2.    Council consider the following propositions as strategic priorities for the Homelessness Taskforce Shoalhaven:

a.    Crisis Term:

i.     Council to negotiate the meanwhile-use of vacant properties as crisis accommodation for rough sleepers throughout winter period.

b.    Short-Medium Term:

i.     Disincentives for properties that are used as short-term holiday homes/ Incentives for owners that rent their properties on long-term leases (12 months+).

ii.     Requirements for developers to create percentage of any new developments as affordable and/or social housing units.

iii.    Push for State Government to expand social housing stock in Shoalhaven region.

iv.   Evaluate Local Governance rules to maximise support for housing developments.

c.    Long Term:

i.     Lobby for the increase of statutory income supports (Centrelink) to Centrelink recipients to maintain basic living expenses amid growing rental costs.

3.    The Homelessness Taskforce Shoalhaven receive a report back to a future meeting advising who is responsible for which item.

 

 

 


 

 

HT22.15     Additional Item - Social Housing

RECOMMENDATION

That Council:

1.    Immediately advocate for social housing funding, that is general in nature and not classified, (so that it can be utilised for all classifications of housing) to:

a.    The Hon Anthony Albanese MP, Prime Minister of Australia.

b.    The Minister for Social Services.

c.    The Hon Fiona Phillips, Member for Gilmore.

2.    Consider as part of future strategic discussions, how community cooperative housing can play a part in solving the affordable housing issues in the Shoalhaven.

3.    Write to the Federal Minister for Planning and Homes to request that regional plans across NSW better identify social and affordable housing.

4.    As part of advocating for Federal funding, the correspondence also be forwarded to the equivalent State counterparts.

 

 

 

 


 

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CL22.261   Delivery Program and Operational Plan, Budget 2022/23 - Exhibition Outcomes

 

HPERM Ref:       D22/219215

 

Department:       Corporate Performance & Reporting

Approver:           Stephen Dunshea, Chief Executive Officer 

Attachments:     1.  Draft Delivery Program Operational Plan and Budget 2022-23 - Post Exhibition (under separate cover)

2.  Draft Fees and Charges 2022-23 - Part 1 - Post Exhibition (under separate cover)

3.  Draft Fees and Charges 2022-23 - Part 2 - Post Exhibition (under separate cover)

4.  Capital Works Budget - March 2022 Quarterly Review Carry Forwards

5.  Draft Resourcing Strategy 2022-26 - Post Exhibition (excluding LTFP) (under separate cover)

6   Draft Long-Term Financial Plan 2022-32 (under separate cover) 

7.  Exhibition Draft DPOP 2022-23 - Full Submissions (councillors information folder)   

Reason for Report

The purpose of this report is to seek Council’s adoption of the 2022/23 Delivery Program and Operational Plan, Budget and Fees & Charges and Resourcing Strategy 2022-26.

The report provides a summary and comments related to the outcomes of the public exhibition process undertaken from 11 May to 10 June 2022.

 

Recommendation

That having considered the submissions received as part of the exhibition process for the Draft Delivery Program and Operational Plan 2022/23 including Budget, Capital Works Program and Fees and Charges, and Resourcing Strategy, Council:

1.    Adopt the 2022/23 Delivery Program and Operational Plan and Budget inclusive of the following changes:  

a.    Revision of the capital works listing as outlined in Attachment 4.

b.    Include the following projects in the 2022/23 Capital Works Program identified in Table 1. In order to maintain balanced budget, these projects will be funded by the budget transfers from other capital works to be confirmed at the June 2022 Budget Quarterly Review:

i.     Quay Rd - Pedestrian Shared User Path Design Urban Upgrade/New $50,000 ($900,000 Stage 1 in 2023/24, $900,000 Stage 2 in 2024/25)

ii.     Silkwood Walk – Streetscape Walk Path Lighting Urban Upgrade/New $25,000

iii.    Shoalhaven Heads Viewing Platform $262,000 (includes $137,000 grant funding)

c.    Note that the budget will remain flexible and might be subject to change particularly given the volatility of the energy market and high inflation.

 

 

2.    Adopt the 2022/23 Fees and Charges Part 1 and Part 2 with the following changes:

a.    Inclusion of Sewage Management Charges and changes as per council resolution MIN22.346

b.    Updated increases to companion animal NSW Government fees for 2022/23 (Office of Local Government Circular 22-16)

c.    Updated relevant Development Application fees as set by NSW Act/regulation (Environmental Planning and Assessment Regulations 2021 [NSW] Schedule 4)

d.    Updated Nowra Library meeting room hire (align with fees listed under Community Facilities, category E (small meeting room)

e.    Fees for Outdoor Dining updated to be $0 for the 2022/2023 financial year.

3.    Adopt the Resourcing Strategy 2022-26, including the Workforce Strategy, Asset Management Strategy and Plan, ICT Strategy and Long-Term Financial Plan 2022-32

4.    Resolve to make the following rates and charges in accordance with Section 535 of the Local Government Act 1993 inclusive of a 4.53% rate increase:

a.    Make an Ordinary Rate, consisting of an ad valorem rate of 0.18978c for each dollar of rateable land value in addition to a base amount of six hundred and ninety-seven dollars ($697.00) per rateable assessment, under Section 537 of the Local Government Act 1993, on all rateable land categorised as “Residential”, in accordance with Section 516, for the period 1 July 2022 to 30 June 2023 and, in accordance with Section 543(1), this rate be named “RESIDENTIAL”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of six hundred and ninety-seven dollars ($697.00) per rateable assessment for the “RESIDENTIAL” category will not produce more than 50% of the total amount payable by the levying of the “RESIDENTIAL” rate in accordance with Section 537(b) [base amount percentage is 49.94%].

b.    Make an Ordinary Rate, consisting of an ad valorem rate of 0.38983c for each dollar of rateable land value, in accordance with Section 518 of the Local Government Act 1993: “Land is to be categorised as ‘business’ if it cannot be categorised as farmland, residential or mining”. Excepting all rateable land in the subcategories of Commercial/Industrial and Nowra, an ordinary rate be now made for the period of 1 July 2022 to 30 June 2023 and, in accordance with Section 543(1), this rate be named “BUSINESS”.

c.    Make an Ordinary Rate, consisting of an ad valorem rate of 0.15700c for each dollar of rateable land value in addition to a base amount of six hundred and ninety-seven dollars ($697.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land categorised as “Farmland”, in accordance with Section 515, for the period 1 July 2022 to 30 June 2023 and, in accordance with Section 543(1), this rate be named “FARMLAND”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of six hundred and ninety-seven dollars ($697.00) per rateable assessment for the “FARMLAND” category will not produce more than 50% of the total amount payable by the levying of the “FARMLAND” rate in accordance with Section 537 (b) [base amount percentage is 24.42%].

d.    Make an Ordinary Rate, consisting of an ad valorem rate of 0.18978c for each dollar of rateable land value in addition to a base amount of forty-nine dollars ($49.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land which is zoned so as not to permit any building (i.e.; Small Lot Rural Subdivisions) and categorised as “Residential”, in accordance with Section 516, sub category “NON-URBAN”, in accordance with Section 529(2)(b), for the period 1 July 2022 to 30 June 2023, and in accordance with Section 543(1), this rate be named “RESIDENTIAL NON-URBAN”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of forty-nine dollars ($49.00) per rateable assessment for the “RESIDENTIAL NON-URBAN” category will not produce more than 50% of the total amount payable by the levying of the “RESIDENTIAL NON-URBAN” rate in accordance with Section 537(b) [base amount percentage is 40.30%].

e.    Make an Ordinary Rate, consisting of an ad valorem rate of 0.59010c for each dollar of rateable land value in addition to a base amount of six hundred and ninety-seven dollars ($697.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land determined to be a centre of activity and categorised as “Business”, in accordance with Section 518, sub-category “NOWRA”, in accordance with Section 529(2)(d), for the period 1 July 2022 to 30 June 2023 and, in accordance with Section 543(1), this rate be named “BUSINESS NOWRA”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of six hundred and ninety-seven dollars ($697.00) per rateable assessment for the “BUSINESS NOWRA” subcategory will not produce more than 50% of the total amount payable by the levying of the “BUSINESS NOWRA” rate in accordance with Section 537(b) [base amount percentage is 15.83%].

f.     Make an Ordinary Rate, consisting of an ad valorem rate of 0.27380c for each dollar of rateable land value in addition to a base amount of six hundred and ninety-seven dollars ($697.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land used or zoned for professional/commercial trade or industrial purposes, determined to be a centre of activity and categorised as “Business”, in accordance with Section 518, sub category “COMMERCIAL/INDUSTRIAL”, in accordance with Section 529(2)(d), for the period of 1 July 2022 to 30 June 2023 and, in accordance with Section 543(1), this rate be named “BUSINESS COMMERCIAL/INDUSTRIAL”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of six hundred and ninety-seven dollars ($697.00) per rateable assessment for the “BUSINESS –COMMERCIAL/INDUSTRIAL” category will not produce more than 50% of the total amount payable by the levying of the “BUSINESS – COMMERCIAL/INDUSTRIAL” rate in accordance with Section 537(b) [base amount percentage is 30.57%].

g.    Make an Ordinary Rate, consisting of an ad valorem rate of 0.07990c for each dollar of rateable land value in addition to a base amount of six hundred and ninety-seven dollars ($697.00) per rateable assessment, in accordance with Section 537 of the Local Government Act 1993, on all rateable land categorised as “Farmland”, in accordance with Section 515, sub category “DAIRY FARMERS”, in accordance with Section 529(2)(a), for the period 1 July 2022 to 30 June 2023  and, in accordance with Section 543(1), this rate be named “FARMLAND - DAIRY FARMERS”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of six hundred and ninety-seven dollars ($697.00) per rateable assessment for the “FARMLAND – DAIRY FARMERS” category will not produce more than 50% of the total amount payable by the levying of the “FARMLAND – DAIRY FARMERS” rate in accordance with Section 537(b) [base amount percentage is 33.12%].

h.    Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.62359c for each dollar of rateable land value in addition to a base amount of two thousand six hundred and seventy-four dollars ($2,674.00), for the cost of road upgrades required to enable property owners to develop their allotments in the Verons Estate. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties with building entitlement within the Verons Estate which, in the opinion of Council, derive special benefit and are subject to this rate, in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2022 to 30 June 2023 and, in accordance with Section 543(2), this rate be named “VERONS ROAD UPGRADE SPECIAL RATE – DWELLING POTENTIAL”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of two thousand six hundred and seventy-four dollars ($2,674.00) per rateable assessment for the “VERONS ROAD UPGRADE SPECIAL RATE – DWELLING POTENTIAL” will not produce more than 50% of the total amount payable by the levying of the “VERONS ROAD UPGRADE SPECIAL RATE – DWELLING POTENTIAL” in accordance with Section 537(b) [base amount percentage is 49.98%].

i.      Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.14057c for each dollar of rateable land value in addition to a base amount of two hundred and ninety-seven dollars ($297.00), for the cost of the road upgrades in the Verons Estate. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties without building entitlement within the Verons Estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2022 to 30 June 2023 and, in accordance with Section 543(2), this rate be named “VERONS ROAD UPGRADE SPECIAL RATE – NO DWELLING POTENTIAL”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of two hundred and ninety-seven dollars ($297.00) per rateable assessment for the “VERONS ROAD UPGRADE SPECIAL RATE – NO DWELLING POTENTIAL” will not produce more than 50% of the total amount payable by the levying of the “VERONS ROAD UPGRADE SPECIAL RATE – NO DWELLING POTENTIAL” in accordance with Section 537(b) [base amount percentage is 49.83%].

j.      Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.11677c for each dollar of rateable land value in addition to a base amount of one hundred and twenty-one dollars ($121.00) for the cost associated with the Nebraska road construction project. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties within the Nebraska Estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2022 to 30 June 2023 and, in accordance with Section 543(2), this rate be named “NEBRASKA ROAD CONSTRUCTION SPECIAL RATE”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of one hundred and twenty-one dollars ($121.00) per rateable assessment for the “NEBRASKA ROAD CONSTRUCTION SPECIAL RATE” will not produce more than 50% of the total amount payable by the levying of the “NEBRASKA ROAD CONSTRUCTION SPECIAL RATE” in accordance with Section 537(b) [base amount percentage is 49.80%].

k.    Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.43105c for each dollar of rateable land value in addition to a base amount of one thousand one hundred and thirty-six dollars ($1,136.00) for the cost associated with the Jerberra road infrastructure project.  In accordance with Section 495(1), the special rate is to be levied only on those rateable properties within the Jerberra Estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2022 to 30 June 2023 and, in accordance with Section 543(2), this rate be named “JERBERRA ROAD INFRASTRUCTURE SPECIAL RATE”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of one thousand one hundred and thirty-six dollars ($1,136.00) per rateable assessment for the “JERBERRA ROAD INFRASTRUCTURE SPECIAL RATE” will not produce more than 50% of the total amount payable by the levying of the “JERBERRA ROAD INFRASTRUCTURE SPECIAL RATE” in accordance with Section 53 (b) [base amount percentage is 49.96%].

l.      Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.14536c for each dollar of rateable land value in addition to a base amount of three hundred and eighty-three dollars ($383.00) per rateable assessment for the cost associated with the Jerberra electricity infrastructure project. In accordance with Section 495(1), the special rate is to be levied only on those rateable properties within the Jerberra Estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2022 to 30 June 2023 and, in accordance with Section 543(2), this rate be named “JERBERRA ELECTRICITY INFRASTRUCTURE SPECIAL RATE”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of three hundred and eighty-three dollars ($383.00) per rateable assessment for the “JERBERRA ELECTRICITY INFRASTRUCTURE SPECIAL RATE” will not produce more than 50% of the total amount payable by the levying of the “JERBERRA ELECTRICITY INFRASTRUCTURE SPECIAL RATE” in accordance with Section 537(b) [base amount percentage is 49.96%].

m.   Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.88193c for each dollar of rateable land value in addition to a base amount of two hundred fifty-seven dollars ($257.00) per rateable assessment for the cost associated with the Jerberra Road E2 infrastructure project. In accordance with Section 495(1) the special rate is to be levied only on those rateable properties within the Jerberra Estate which, in the opinion of Council, derive special benefit and are subject to this rate in accordance with Section 495(2) (a) (b) and (c). The special rate be now made for the period 1 July 2022 to 30 June 2023 and, in accordance with Section 543(2), this rate be named “JERBERRA ROAD E2 SPECIAL RATE”.

Further, to comply with Section 500 of the Act, the total amount payable by the levying of the base amount of two hundred fifty-seven dollars ($257.00) per rateable assessment for the “JERBERRA ROAD E2 SPECIAL RATE” will not produce more than 50% of the total amount payable by the levying of the “JERBERRA ROAD E2 SPECIAL RATE” in accordance with Section 537(b) [base amount percentage is 49.85%].

n.    Make a Special Rate, in accordance with Section 538, consisting of an ad valorem rate of 0.03311c for each dollar of rateable land value to meet the costs of business promotions for the Sussex Inlet area and surrounds, in accordance with Section 495(1), which in the opinion of Council is of special benefit to the rateable assessments subject to the rate in accordance with Section 495(2) (a) (b) and (c).  The special rate be now made for the period 1 July 2022 to 30 June 2023 and, in accordance with Section 543(2), this rate be named “SUSSEX AREA SPECIAL RATE”.

 

 

o.    Make an Annual Charge for Water Usage and Water Availability, in accordance with Section 502 and 552(1) (a) and (b), for the period 1 July 2022 to 30 June 2023, comprising a Water Usage Charge of $1.90 per kilolitre for all residential, commercial and Community Service Obligation categorised properties and a Water Availability Charge based on water meter size:

Size of Water Meter Service Connection

Charge 2022/23

20 mm

$84

25 mm

$140

32mm

$226

40mm

$354

50mm

$556

80mm

$1,417

100mm

$2,216

150mm

$4,981

200mm

$8,858

Properties with multiple water meter service connections will be levied an availability charge for each connection. In accordance with Section 552 of the Local Government Act 1993, any vacant land where the service is available will be levied an availability charge.

The charges be named “WATER USAGE CHARGE” and “WATER AVAILABILITY CHARGE”, in accordance with Section 543(3).

p.    Make an Annual Charge for Sewer Usage and Sewer Availability, in accordance with Section 502 and 552(3) (a) and (b), for the period 1 July 2022 to 30 June 2023, comprising a Sewer Usage Charge of $2.00 per kilolitre for all residential, commercial and Community Service Obligation categorised properties and a Sewer Availability Charge based on water meter size:

Size of Water Meter Service Connection

Charge 2022/23

20 mm

$910

25 mm

$1,269

32mm

$1,938

40mm

$2,570

50mm

$3,635

80mm

$7,499

100mm

$10,751

150mm

$18,527

200mm

$28,744

Properties with multiple water meter service connections will be levied a sewer  availability charge for each connection. In accordance with Section 552 of the Local Government Act 1993, any vacant land where the service is available will be levied an availability charge.

The charges be named “SEWER USAGE CHARGE” and “SEWER AVAILABILITY CHARGE”, in accordance with Section 543(3).

q.    Make an Annual Charge for the availability of a Domestic Waste Management Service, pursuant to Sections 496 and 501 of the Local Government Act 1993, for the period 1 July 2022 to 30 June 2023, on all rateable properties categorised as residential for rating purposes and comprising of a building which is deemed to be a dwelling and located within the defined (urban) waste collection area.

The amount for the standard residential domestic waste management service be $441 for one 120 litre mobile garbage bin (MGB) for landfill waste and one 240 litre MGB for recycling. The landfill bin is collected weekly and recycling bin is collected fortnightly. For a higher annual charge of $767, the 120-litre landfill bin may be substituted for a 240-litre landfill bin. For a lower annual charge of $335, the 120-litre landfill bin may be substituted for an 80-litre landfill bin.

In accordance with Section 543(3), the charge be named “DOMESTIC WASTE MANAGEMENT CHARGE”.

r.     Make an Annual Charge for a Rural Domestic Waste Collection Service, pursuant to Sections 496 and 501 of the Local Government Act 1993, for the period 1 July 2022 to 30 June 2023, on rateable properties comprising of a building which is deemed to be a dwelling and located outside of the defined (urban) waste collection area and opt for the rural domestic waste collection service.

The amount for the rural domestic waste collection service be $441 for one 120 litre mobile garbage bin (MGB) for landfill waste and one 240 litre MGB for recycling. The landfill bin is collected weekly, and the recycling is collected fortnightly. For a higher annual charge of $767, the 120-litre landfill bin may be substituted for a 240-litre landfill bin. For a lower annual charge of $335, the 120-litre landfill bin may be substituted for an 80-litre landfill bin.

In accordance with Section 543(3), the charge be named “RURAL DOMESTIC WASTE COLLECTION CHARGE”.

s.     Make an Annual Charge, pursuant to Section 496 of the Local Government Act 1993, for the period 1 July 2022 to 30 June 2023, of $96 per assessment for administration and new works associated with future provision of domestic waste management services. The charge to be applied to any domestic assessments which have any boundary adjacent to a road receiving an urban domestic waste management service and

i.     Does not have a dwelling situated thereon, or

ii.     The closest point of the dwelling is 100 metres or more from the boundary of the road and the ratepayer chooses not to receive a domestic waste management service.

In accordance with Section 543(3), the charge be named “VACANT LAND SERVICE AVAILABILITY CHARGE”.

t.     Make an Annual Charge for Stormwater Management Services, pursuant to Section 496A of the Local Government Act 1993, for the period 1 July 2022 to 30 June 2023, of $25.00 per eligible residential or business rate assessment and $12.50 per strata assessment. In accordance with Section 543(3), the charge be named “STORMWATER MANAGEMENT SERVICE CHARGE”.

u.    Make an Interest Rate of 6.0%, pursuant to Section 566(3) of the Local Government Act 1993, for the period 1 July 2022 to 30 June 2023 (inclusive), which does not exceed the maximum interest rate chargeable on overdue rates and charges, accruing daily on a simple interest basis.

5.    Thank the community for providing their submissions as part of the exhibition process and provide a response to each submission, outlining the outcome and actions undertaken relating to the issues raised.

 

 

Options

1.    To endorse the 2022/23 Delivery Program, Operational Plan and Budget, Resourcing Strategy and the proposed recommendations for the making of ordinary and special rates and annual charges.

Implications: Delivery Program, Operational Plan and Budget, Resourcing Strategy and rates and charges will be adopted as required by legislation.

 

2.    Not endorse the recommendations and resolve to make changes to the 2022/23 Delivery Program, Operational Plan and Budget, Resourcing Strategy or to make rates and annual charges using different values.

Implications: Council would need to provide direction to staff in relation to necessary budget adjustments to accommodate changes to the 2022/23 Delivery Program, Operational Plan and Budget, Resourcing Strategy or the recommended alternate rates and charges.

 

Background

Each year Council is required to outline the activities, programs, services and budget that are proposed for the following financial year. This process is undertaken to ensure that Council is clearly identifying how it will continue to meet the needs and aspirations of the community as specified within the Community Strategic Plan. This forms part of the Integrated Planning and Reporting (IP&R) Framework which is a legislative requirement of the Local Government Act 1993.

A report was provided to Council at the Ordinary Meeting on 9 May 2022 to seek to place the 2022/23 Draft Delivery Program, Budget, Fees and Charges and Resourcing Strategy 2022-26 on exhibition. The suite of documents was endorsed for public exhibition with the following resolution:

That Council:

1.   Endorse the Draft 2022/23 Delivery Program and Operational Plan, Draft Budget, Draft Fees and Charges and Draft Resourcing Strategy for the purpose of placing on public exhibition for a period of 28 days.

2.   Maintain the 2021/22 rating structure, comprising both base and ad valorem amounts noting that the use of a base amount results in bringing the higher and lower values closer together and in effect spreads the burden across the board to all ratepayers – noting also that this is a commonly used rating structure that is considered to provide the fairest and most equitable distribution of the rate levy across the LGA. 

3.   In accordance with Section 566(3) of the Act, endorse the rate of interest payable on overdue rates and charges for the period 1 July 2022 to 30 June 2023 (inclusive) to be 6% per annum which is the Office of Local Government recommended maximum for 2022/23 financial year.

4.   Note that interest charges will continue to be waived for ratepayers that are experiencing financial hardship and they can apply for financial assistance under Council’s Hardship Policy.

5.   Approve the Minister’s allowable limit of a 4.53% increase (1.7% rate peg plus 2.83% SRV catch-up) in 2022/23 to the notional yield as permitted by Section 511 of the Local Government Act 1993.

6.   Receive a report on feedback from the community on the Draft 2022/23 Delivery Program Operational Plan and Budget following the public exhibition period.

 

This report outlines recommended changes and presents the final suite of planning documents to be endorsed.

 

Public Exhibition

In accordance with the resolution of Council, the 2022/23 Draft Delivery Program and Operational Plan (DPOP), Budget, Fees and Charges and Resourcing Strategy were placed on public exhibition from 11 May until 10 June 2022.

The engagement was set at the level of inform and consult within the IAP2 framework. Focus on the engagement process was to inform the community and ask for feedback on the draft documents. Submissions could be made to Council either via the online Get Involved page or via email, letter to Council or over the phone.

Communication & Engagement Activities included:

·        Pop-up market engagement events (4 events, 123 discussions)

·        Email invitations to provide feedback to:

Community Consultative Bodies Executive Committee members

Council Advisory Committee members

State Agencies - Illawarra Shoalhaven Leadership Executive

·        Social Media posts and two campaigns (17,923 total reach)

·        “Get Involved” website including online submissions (1,129 visits)

·        Highlighted projects map on Council’s webpage

·        2 Media releases and mentions by the Mayor on radio

·        Details in Council’s weekly e-news, website news items

·        Promotional flyers, posters at Council facilities

·        Competition to encourage submissions with a chance to win SEC vouchers

The combined engagement statistics report is included as an attachment to the Council report on the draft Community Strategic Plan exhibition outcomes.

 

Summary of Submissions

A total of 25 individual submissions were received during the exhibition period on the DPOP, Budget or Capital Works program. The Community Strategic Plan had an additional 56 submissions, some of which were joint submissions or more relevant to the DPOP. Within these submissions there were several items, requests and suggestions.

Many of the individual submissions also included requests for new projects, items for funding or inclusion of actions in Council’s DPOP. Some submissions contained multiple issues, items or requests. The submissions are included in Table 1 and are accompanied with a staff comment, recommendation or proposed action in response.

Copies of each submission have also been provided in the Councillor Information Folder (Attachment 5) – the Reference number (Ref #) cross references the original submission. All submitters will receive a detailed email response following adoption of the final documents with additional staff comments alongside the summary provided in Table 1.

 

 

 

 

 

 

Table 1 - Submission items and recommended action

 

Ref #

Submission From

Subject/Comment/Issue

Staff comment / Recommended Action Required

D01

Community/Resident

Request to enhance Priority 2.3 with improvements to the targets/indicators. Protect pockets of bushland and state this as a priority. Development must be balanced with preserving natural heritage. 

Council's DPOP has an objective 2.3.03 - 'Protect the natural environment by developing strategies to enhance and maintain biodiversity, urban green cover and ensure coastal protection’

Council has a rigorous environmental assessment process, whereby Development Applications are referred to Biodiversity specialists. This process ensures that all relevant environmental legislation is adhered to in order to achieve a balance between conservation and development.

D02

Community/Resident

Request assistance with development applications for charities and not-for-profits.

The Development Application process is heavily regulated by legislation. Applications are now required to be lodged digitally in the NSW Planning Portal. The ‘system’ can be frustrating for infrequent users. To assist customers Council has dedicated Portal officers to help with the lodgement of DAs. Further, if there are any questions or help is required, Council is happy to make staff available to discuss the process and what information is required for a development application. When a DA is ultimately assigned to an officer, that officer is the point of contact for our customers. Council also has a Development Hub website which contains information for people lodging applications.

D03

Community/Resident

Encourage rate increase to be limited to 2.5% due to cost of living pressures. Council support residents to plant more trees through subsidised for free tree giveaways.

Council promotes the stabilisation of habitat within private owned lands. For example, when approval is provided to private owners for tree removal, compensatory planting is recommended to occur to offset the impacts on habitat and carbon abatement. The private owner is provided a plant species list and a suggested offset ratio. By way of further example, new developments require a review by Council Biodiversity specialists to enact the requirements of the Biodiversity Conservation Act 2016 (NSW). Council is also developing a strong relationship with Greening Australia to plant areas within Council owned lands, as well as natural area rehabilitation works that are undertaken as business as usual.

Rates is the main source of Council revenue and Council will not be able to deliver all projects currently identified in capital works program if the rates increase is limited to 2.5%.

D04

Community/Resident

Fix roads around Bay & Basin area.

Council is not in disagreement about the current state of the roads. As part of its advocacy for additional funds, Council has secured a promise from the incoming government to improve key roads including Forest Road ($8M), Callala Bay Road ($6M), Culburra Road ($14M), intersection works at Coonemia / Currarong / Callala Bay Roads ($2M), intersection works at Greenwell Point / Worrigee Roads, Wool Road ($3M) and St Georges Basin Rd ($2M).

 

This is in addition to the estimated $50M of federal funding Council will be claiming for the rehabilitation of the road network after the devastating March 2022 rainfall event. The Draft DPOP also provides for $34.7 M of Capital upgrades to the road network and an increase of $2.6M on the existing road maintenance budget to bring that up to a total of $38.8M being spent in the 2022/23 financial year.

D05

Community/Resident

Basing rates on ad valorem is unfair. Doesn't appear any revenue raised by tourism and would like a tax on tourism.

Council’s residential rates are made up of two components. The first component is calculated by using the rate in the dollar (ad valorem). The second component is a base amount which is set at the maximum of 50 per cent of the total. All Residential properties are charged the same base amount. Council has the maximum base amount as set under the Local Government Act in order to address this ‘unfairness’. If Council does not use a combined ad valorem, base amount rating structure then the only other permitted rating structure is ad valorem only. As such, our Council minimises the impact of land fair value increase by applying maximum allowable by legislation base component of 50%.

Since Council has invested in Tourism within the region, tourism expenditure and tourism related jobs have only increased. While this is not a direct profit to Council which can be invested into the tourism budget, the benefit considerable benefit to the local economy from Council's investment makes it worthwhile. Further to this, our Visitor Centre makes a profit through advertising and merchandise which offsets Council's investment in Tourism.

Planning NSW has recently brought in new regulations for holiday homes (STRA’s Short Term Rental Accommodation) to provide a code of conduct and ensure compliance with state laws. Holiday Homes owners also pay full rates to council whether the homes are utilised year round or not, providing income to Council.

Tourism infrastructure includes boardwalks, lookouts, general upgrades that not only enhance the tourist experience but also improve the day-to-day liveability of the region for community, a value is not easily measurable. Traditionally people think of tourism businesses simply as accommodation providers and tour operators, when in fact many small businesses including cafes, restaurants, bakeries and pharmacies which the community value are heavily reliant on tourism dollars in order to survive. Many of these businesses are small in nature and additional taxes at a time when fires, floods and covid have already impacted their trade would make an already challenging period even harder. Shoalhaven Tourism's objective is to disperse tourist away from peak periods (and hot spots such as Hyam's Beach) so that small businesses can make income year round, and to promote the development of an industry that is sustainable in the long-term.

D06

Community/Resident

Pensioner discounts have not risen but rates have. Condition of roads to Manyana are in poor state.

See submission detail D04 for roads.

Council has no control over the $250 maximum pensioner concession amount as it is determined by the NSW State Government. Section 575 Reductions for eligible pensioners, is the relevant part of the Local Government Act 1993, that Council is obliged to refer to, specifically Section 575 (3) the total amount by which: (a) all ordinary rates and charges for domestic waste management services levied on any land for the same year are reduced is not to exceed $250. This sets the maximum concession amount that Council is permitted to apply.
Since 1 July 2018, Shoalhaven City Council also provides a $10 voluntary pensioner concession in addition to the mandatory $250.00 maximum concession.

D07

Callala Beach Progress Association

Highlights capital works which should be included in 2022-23 program as per Council resolution.

RECOMMENDATION:
• $50k moved forward to 2022/23 budget – from unfunded - Quay Rd - Pedestrian SUP Design Urban Upgrade/New $50,000.
• $25k moved forward to 2022/23 budget – from 2030-31 - Silkwood Wlk – Streetscape Wlk Path Lighting Urban Upgrade/New $25k
• $900k moved forward to 2023/24 budget – from unfunded - Quay Rd - Pedestrian CH0 SUP Stg1 Urban Upgrade/New $900k
• $900k moved forward to 2024/25 budget – from unfunded - Quay Rd - Pedestrian CH0 SUP Stg2 Urban Upgrade/New $900k

D08

Community/Resident

Suggestion that short term rental properties could pay higher rates or surcharge.

Holiday homes or short term holiday rentals have been a feature of Shoalhaven for a long period of time, and they contribute to the tourism economy of Shoalhaven. Their use is currently regulated by NSW Government legislative framework. At present there is no legal ability to require them to pay higher rates or a surcharge, the funding from which could be put toward infrastructure or affordable housing.

Council  was however successful in having the following motion carried at the 2022 Local Government NSW Special Conference: “That Local Government NSW asks the NSW Government to consider legislative tools to assist councils with the impact of short-term rental platforms on local communities with respect to long-term rental availability”. As such this matter will continue to be pursued with the NSW Government through Local Government NSW to see what changes are possible and will be considered.

D09

Community/Resident

Request to bring forward plans for sewerage capital works in Tomerong.

In April 2021, for the village zoned area of Tomerong, Council resolved the following (MIN21.464):
That Council include $7.3 million for the Tomerong Sewerage Scheme (as a pressure sewer scheme) in the Sewer Capital Works Program, for completion in the 2028/29 financial year based on the following:
1.      Design of the scheme to commence in 2026/27 and construction commence in 2027/28,
2.      Noting that the scheme is not currently funded, review the sewer availability charge as part of the 2022/23 DPOP preparation to ensure the project is accommodated in the Long Term Financial Plan,
3.      The scheme also encompass any zoned land which has not been developed at this stage.
4.      Shoalhaven Water to seek grant funding to assist with the financing of the scheme.

The timeframes outlined in Council’s Resolution are based on Council fully funding the project. The only way for the project to be funded is through revenue raised by sewer charges, and the project is now included in the Long-Term Financial Plan, so it will be funded at the time outlined in the resolution. Should grant funding be received prior the project may be able to be brought forward and Shoalhaven Water have put the project forward for funding under the Town Water Risk Reduction Program.

D10

Community/Resident

Specific improvements to roads in Ulladulla. Council should provide green bins or larger rubbish bins at no extra charge.

See submission detail D04 for roads. Suggestion of removal of additional trees on roadside is noted by staff.

 
The introduction of a green bin to all residents in the Shoalhaven is not currently part of Council’s waste strategy. An overview of common questions and answers related directly to green bins is available at Green Bins FAQ on Council's website. Further information will be provided directly to the resident.

 

Councillors resolved at the 11 April Council meeting to receive a briefing on the costs associated with providing a green bin. This is scheduled for July 2022.

D11

Community/Resident

Request for more dog friendly areas and removal of 'dog prohibited' signs at Narrawallee.

A comprehensive review of Council’s Access Areas for Dogs Policy is now being undertaken. The Policy Review aims to improve the overall Policy operation and deliver a balanced outcome for all users of public space within the Shoalhaven. The Policy Review involves consideration of dog access areas, their categorisation and signage. Appropriate environmental due diligence is required to be applied with any changes to on-leash or off-leash areas for dogs. Suitably qualified professionals are to undertake environmental assessments for existing dog access areas designated by Council under the Access Areas for Dogs Policy review.

D12

Community/Resident

Request for green bins, more 24 hour dog access beaches, road condition improvements, concern for proposed developments in Mollymook.

See greenbin response in submission D10 and dogs policy review in submission D11.
If the submission is relating to DA22/1138 for 56 Ocean Street, Mollymook, this is currently under assessment. There is a significant height variation proposed.  It will be assessed having regard to clause 4.6 of the Shoalhaven Local Environmental Plan 2014 and other prescribed matters. Approval is unknown at this stage, as the assessment is incomplete.

D13

Community/Resident

Suggestion to provide resident parking permits in peak holiday season.

Feedback and suggestion acknowledged.

D14

Community/Resident

Request for Green bins, free kerbside bulky waste collection.

See greenbin response in submission D10. Full response to be provided to resident.

D15

Community/Resident

Request for green bins

See greenbin response in submission D10. Full response to be provided to resident.

D16

Community/Resident

Council carpark suggestion for Berry, footpath request, install heritage streetlighting in Berry.

Suggestions will be included in 2023/24 for further investigation.

D17

Community/Resident

Support for proposed rate increase.

Feedback on proposed rate increase acknowledged.

D18

Community/Resident

Request for increased heating of Ulladulla Leisure Centre pool.

The challenges in relation to the various users of our swimming pools at Ulladulla Leisure Centre in getting the right temperature for all is difficult. Ulladulla pool is actually the warmest indoor pool in the Shoalhaven. Heating is a very expensive exercise which we currently do not have budget for. In a few years' time, budget is allocated to replace the current heating system with heat pumps which, pending budget, may allow some heating of the outdoor pool also to provide more use of this across the year.

D19

Sanctuary Point Community Champions

Multiple queries on the proposed capital works program in Sanctuary Point, including roads, Wool Lane Sporting Complex Masterplan; request funding for small scale place based community projects.

Full staff response will be provided directly as multiple queries in relation to budget allocations and status of existing projects will require further research and collation by staff. Summary response:
In relation to Wool Lane Sporting Complex, a proposed Master Plan Priority List was reported to Council’s Ordinary Meeting in February 2022 (MIN22.135). Revised priority list will be reported at 27 June 2022 meeting.
In regard to funding for place based community projects, Community Wellbeing grants offer up to $2,000 for projects that support and enhance life in the Shoalhaven. For transparency and equity, funding is likely to be dispersed through a grants program.

D20

Nowra CBD Business Chamber

Methodology, application and service levels of Council's Commercial Waste Collection services in Nowra CBD.

Council’s annual domestic waste charge applies to the premises, is levied on the owner of the premises and allows for different quantities of waste generated on the premises in the form of variable bin sizes and numbers.  The charge is not fixed as per a carparking space or a water connection point.  The Chamber’s own investigation has found that many bins in the CBD are overflowing and may be too small.  Note that the owner and occupier of business premises is responsible for ensuring they have an adequate provision for the particular waste types and quantities that they produce.  Businesses, unlike domestic properties, are not required to use the domestic service but have a choice based on their specific waste generation rates, storage areas and other needs. 

 

Any business owner may utilise a private collection service from a commercial provider.  The advantage is that the tenant, and not the property owner as with the domestic service, is able to enter into a contract with the commercial waste collection provider, who is able to enter the property, empty the bins and return them to the property, who is able to service the bins more than once a week or only once a month and who is able to provide a range of different bin sizes.  This flexibility cannot be provided with the domestic waste collection service 

Business owners taking on the option of a commercial collection service will not be liable for any Council waste collection fees.

D21

Community/Resident

Flood and stormwater management in Culburra Beach. Queries provisions for bushfire mitigation and control.

Council completed a Flood Study for Lake Wollumboola in 2015 and this was subsequently adopted by Council. The outcomes from the Flood Study are used by Council to define flood prone land within the Lake Wollumboola catchment and ensure that appropriate development controls are applied to new developments. An updated Flood Study for the Lower Shoalhaven River catchment is currently on public exhibition, with the next stage a review of the Lower Shoalhaven River Floodplain Risk Management Study and Plan. This stage will assess all available structural and non-structural mitigation options that could be implemented to mitigate flood impacts on the community to reduce private and public losses resulting from floods and assist with flood evacuation. The Lower Shoalhaven River Flood Study includes all areas of Culburra Beach other than southern areas which drain to Lake Wollumboola.

Upgrades to Council’s existing stormwater drainage network is managed through Councils stormwater drainage program. Upgrades are typically funded by stormwater levy charges and proposed stormwater drainage projects are summarised in draft Budget 2022/23. In Culburra Beach, upcoming projects include improvements to drainage near Greenbank Grove & West Cres intersections, upgrades to roadside drains along Prince Edward Ave and Penguin Heads Rd, Kerb and Gutters on Allerton Ave and Ocean St.  Stormwater drainage projects undergo prioritisation against many other competing projects throughout the LGA.

D22

Vincentia Ratepayers Residents Association

Multiple queries and suggestions for capital works program in Vincentia.

Full staff response will be provided directly as multiple queries in relation to budget allocations and projects will require further research and investigations. Suggestions for capital projects have been passed onto relevant staff for consideration.

 

D23

Collingwood Beach Preservation Group

Multiple queries and suggestions for capital works program in Vincentia.

As per submission D22.

D24

Diana Lorentz, Jervis Bay Maritime Museum (Ref. by Clr White)

Request to ensure matched funding for upgrade of the wharf at the Maritime Museum to match Crown Lands grant funding.

Confirm that a project budget is included within the draft 2022/23 Capital Renewal Budget titled 'JBMM Jetty Replacement 2022' for an amount of $158,000, of which the $88,000 will be funded in addition to contingency and project management costs and ancillary works.

D25

Shoalhaven Heads Community Forum (Ref. by Clr White)

Capital works funding requests - Jerry Bailey Oval toilet block; Lions Club Viewing Platform.

Budget was allocated to fund viewing platform Includes $137,000 grant and $125,000 Council contribution.

The budget for Jerry Bailey Oval remains unchanged to accommodate delivery of the project.

 

Delivery Program Operational Plan

There are no proposed amendments to Council’s Delivery Program objectives or Operational Plan Actions or reporting measures from the version placed on public exhibition. The DPOP is included as Attachment 1, with the Fees and Charges included as Attachment 2 (Part 1) and Attachment 3 (Part 2). Updates to fees and charges are included in the resolution.

 

Considerations and Proposed Changes to 2022/23 Budget

 

Operational Budget

Income Statement – General Fund was updated to reflect March QR carry-forwards such as $700K operational costs for OneCouncil Implementation project and $150K for Environmental Assessments for the Dog Policy Review.

 

Capital Works Listing

It is important to note that the Draft DPOP was prepared prior to the March Quarterly Budget Review and before severe damage to Council infrastructure caused by recent East Coast Low weather pattern. As such, further changes were made to refine the Capital Works Program as outlined in Attachment 4.

As a result of the March Quarterly Budget Adjustments and submissions, the total Capital Works Program increased from $191M to $247M: General Fund works increased by $36M, Water by $4M and Sewer by $15M (includes $12.5M Moss Vale Road revote). The major increase in General Fund capital works relate to March revotes such as $16.6M for the Far North Collector Road, $2M total of Bushfire Local Economy Recovery Fund (BLERF) projects with the funding received in the third quarter of the 2021/22 financial year, and $1.8M of plant purchases carried forward into the next financial year due to delays in supply chain.

Similar to this financial year, the 2022/23 budget will remain flexible and may subject to change particularly given volatility of the energy market and high inflation.

 

Editorial and Formatting Changes

As part of the exhibition process some minor editorial and formatting changes were identified and these changes have already been made to the DPOP and included in the documents provided with this report.

These changes have not been specifically identified within the body of the report as they do not change the intent of the document or any budget position and are considered minor in nature.

 

Resourcing Strategy   

Within the Asset Management Policy there have been minor amendments related to a better explanation of our asset portfolio (a number of items were added to the list in Section 2) and clarification of some linkages with agreed Service Levels. Council’s Resourcing Strategy 2022-26 is included as Attachment 5.

The Long-Term Financial Plan was updated to reflect an updated capital works program and budget and is included as a separate Attachment 6.

There have been no amendments to the remaining elements of the Resourcing Strategy to the version which was exhibited.

 

Rating Structure

In order for Council to levy rates and charges for the 2022/23 rating year, Council is required to resolve the making of all rates and annual charges, in accordance with the Local Government Act 1993 & Local Government (General) Regulations 2005.

One (1) submission was received in support of the full proposed rate increase during the public exhibition period regarding the proposed 2021/22 Rating Structure. One (1) submission asked to limit the rate increase to 2.5%. No submissions were received in opposition to the proposed rate increase.

Following publication of Council’s draft Revenue Policy, in accordance with Section 532 of the Local Government Act 1993, the rating structure was updated by re-doing the calculations on the basis of Supplementary Notices from the Valuer-General dated 4 June 2022. The revision resulted in small changes and the revised rating structure for 2022/23 for ordinary and special rates is presented below. These changes have already been included in the DPOP documentation that has been provided with this report. 

 

Table 2. Ordinary Rates

Sub-Category

No. of Rateable Properties

Land Value

Ad Valorem

(c in $)

Base Rate Amount ($)

Total Rate Yield ($)

Ordinary Residential Rates

55,475

$20,426,216,745

0.18978

$697.00

$77,431,085

Residential Non-Urban Rates

941

$35,991,200

0.18978

$49.00

$114,413

Ordinary Farmland Rates

635

$871,466,200

0.15700

$697.00

$1,810,797

Farmland Rates - Dairy Farmers

150

$265,325,000

0.07990

$697.00

$316,545

Ordinary Business Rates

151

$2,246,220

0.38983

 

$8,756

Business Nowra Rates

365

$229,190,900

0.59010

$697.00

$1,606,861

Business Commercial / Industrial Rates

1,819

$1,051,539,740

0.27380

$697.00

$4,146,959

 

59,536

$22,881,976,005

 

 

$85,435,415

 

 

Table 3. Special Rates

 

Sub-Category

No. of Rateable Properties

Land Value

Ad Valorem

(c in $)

Base Rate Amount ($)

Total Rate Yield ($)

Verons Road Upgrade Special Rate - Dwelling Potential (commenced 1 July 2017)

22

$9,440,000

0.62359

$2,674.00

$117,695

Verons Road Upgrade Special Rate - No Dwelling Potential (commenced 1 July 2017)

10

$2,127,000

0.14057

$297.00

$5,960

Nebraska Road Construction Special Rate

23

$2,402,400

0.11677

$121.00

$5,588

Jerberra Rd Infrastructure

103

$27,186,100

0.43105

$1,136.00

$234,194

Jerberra Electricity Infrastructure

103

$27,186,100

0.14536

$383.00

$78,967

Jerberra Road - E2

16

$469,000

0.88193

$257.00

$8,248

Sussex Area Special Rates

99

$51,790,315

0.03311

 

$17,148

 Total

376

$120,600,915

 

 

$467,800

 

In accordance with Sections 534 and 535 of the Local Government Act 1993, Council can resolve to make rates and charges for the 2022/23 financial year.

 

Conclusion

The 2022/23 Draft Budget was prepared based on the principles of prudent financial management and fiscal discipline. As demonstrated in the table below, the proposed changes to the 2022/23 Draft Budget have no impact on net unrestricted cash and the final 2022/23 budget will remain balanced.  This indicates that the budgeted general fund operational and capital expenditures do not exceed the general revenue and available internal and external restrictions of the Council and consequently conforms to the requirement of no cash deficit budgeting.

 

2022/23 Budget ($'000)

General Fund

Water Fund

Sewer Fund

Consol.*

Draft 2022/23 Budget

 

 

 

 

Net Operating Results

32,450

3,305

8,765

42,526

Net Surplus/(-Deficit) before Capital

306

-359

6,365

4,318

Other Cash Adjustments

Capital Expenditure

-142,601

-24,367

-25,018

-191,986

New Borrowings

21,080

0

0

21,080

Loan Principal Repayments

-13,425

0

-5,416

-18,908

Proceeds from the disposal of assets

5,659

120

100

5,879

Receipt of Internal Loan Repayment

0

1,119

-1,119

0

Depreciation Adjustment

48,032

10,688

16,416

75,136

Dividend Paid to General Fund

1,994

-458

-1,536

0

Net Cash Outflow

-46,811

-9,593

-7,808

-66,273

Reserve Movements

Net Transfers from Reserves

46,811

9,593

7,808

64,212

General Fund Net Cash Movement

0

0

0

0

Adjustments to 2022/23 Draft Budget Post-Exhibition: 

Net Operating Results

1,671

-165

-1

1,505

Net Surplus/(- Deficit) before Capital

-491

-165

-1

-657

Other Cash Adjustments

Increase in Capital Expenses mainly due to March QR Revotes

-35,959

-4,440

-14,554

-54,953

Net Cash Outflow

-34,288

-4,605

-14,555

-53,448

Reserve Movements

Additional Transfers from Reserves (from March Revotes - Committed Capital Reserve and Operational Budget carry forwards)

34,288

4,605

14,555

55,509

General Fund Net Cash Movement

0

0

0

0

Updated 2022/23 Budget:

Net Operating Results

34,121

3,140

8,764

44,031

Net Surplus/(Deficit) before Capital

-185

-524

6,364

3,661

Other Cash Adjustments

Capital Expenditure

-178,560

-28,807

-39,572

-246,939

New Borrowings

21,080

0

0

21,080

Loan Principal Repayments

-13,425

0

-5,416

-18,908

Proceeds from the disposal of assets

5,659

120

100

5,879

Receipt of Internal Loan Repayment

0

1,119

-1,119

0

Depreciation Adjustment

48,032

10,688

16,416

75,136

Dividend Paid to General Fund

1,994

-458

-1,536

0

Net Cash Outflow

-81,099

-14,198

-22,363

-119,721

Reserve Movements

Net Transfers from Reserves

81,099

14,198

22,363

119,721

General Fund Net Cash Movement

0

0

0

0

*Note: Consolidated results include interfund adjustments not listed in the table.

 

Following the consideration of the submissions received and the identification of the required changes, it is recommended that the Draft Delivery Program and Operational Plan 2022/23, Draft Budget, Fees and Charges and Draft Resourcing Strategy be adopted by Council, with proposed changes, as outlined in the recommendation at the beginning of this report.

 


 

 Ordinary Meeting – Monday 27 June 2022

Page 1

 


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 Ordinary Meeting – Monday 27 June 2022

Page 1

 

 

CL22.262   Community Strategic Plan 2032 - Exhibition Outcomes

 

HPERM Ref:       D22/219668

 

Department:       Corporate Performance & Reporting

Approver:           Kevin Voegt, Director - City Performance 

Attachments:     1.  Draft Community Strategic Plan 2032 - Post Exhibition (under separate cover)

2.  Engagement Report - Exhibition Draft IP&R document 2022-23

3.  Draft CSP 2032 Exhibition - Full Submissions (councillors information folder)   

Reason for Report

The purpose of this report is to seek Council’s endorsement of the Community Strategic Plan - Shoalhaven 2032. The report provides a summary and comments related to the outcomes of the public exhibition process undertaken from 11 May to 10 June 2022.

 

Recommendation

That Council

1.    Receive feedback provided by the community on the Draft Community Strategic Plan for information.

2.    Endorse the Community Strategic Plan - Shoalhaven 2032 with recommended amendments.

3.    Publish a copy of the endorsed Community Strategic Plan on Council’s website and provide advice to the Office of Local Government.

4.    Thank the community for providing their submissions as part of the exhibition process and provide a response to each submission, outlining the outcome and actions undertaken relating to the issues raised.

 

 

Options

1.    To endorse the Community Strategic Plan - Shoalhaven 2032

Implications: The Community Strategic Plan will be endorsed by 30 June 2022 as required by legislation.

 

2.    Not endorse the recommendations and resolve to make changes to the Community Strategic Plan - Shoalhaven 2032

Implications: Council would need to provide direction to staff in relation to any further amendments.

Background

Local Councils in NSW are required to undertake their planning and reporting activities in accordance with the Local Government Act 1993 and the Local Government (General) Regulation 2021. The Act and Regulation provide guidelines for Councils to follow to ensure community involvement is central to the formation of strategic plans that drive Council’s long-term planning and day to day operations.

The Community Strategic Plan (CSP) is the community’s plan for the Shoalhaven. It has a minimum ten-year timeframe and should reflect the community’s aspirations (needs and wants) for the Shoalhaven. Council’s role in the production of the CSP is to facilitate its development and produce the document. The CSP is not just a Council plan but a community plan and responsibility for achieving our long-term objectives rests with the collective commitment of all levels of government, businesses, industry groups, community organisations and individuals.

A report provided to Council at the Ordinary Meeting on 9 May 2022 resulted in the following resolution:

That Council:

1.    Endorse the Draft Community Strategic Plan - Shoalhaven 2032 for the purpose of placing on public exhibition for a period of 28 days to seek further community feedback

2.    Receive the ‘Stage 1 Community Engagement Report for the Community Strategic Plan Review’ for information

3.    Endorse the Community Engagement Plan for Stage 2 of the Community Strategic Plan Review

4.    Thank the community for their participation to date and invite further feedback during the public exhibition period

5.    Receive a report on feedback from the community on the Draft Community Strategic Plan - Shoalhaven 2032 following the public exhibition period.

 

This report includes an overview of the community engagement activities, outlines any recommended changes, and presents the final draft Community Strategic Plan - Shoalhaven 2032 to be endorsed and is included as Attachment 1 for consideration.

 

Public Exhibition

In accordance with the resolution of Council, the Draft Community Strategic Plan was placed on public exhibition from 11 May until 10 June 2022.

The engagement was set at the level of inform and consult within the IAP2 framework. Focus on the engagement process was to inform the community and ask for feedback on the draft documents.  Submissions could be made to Council either via the online Get Involved page or via email, letter to Council or over the phone.

Communication & Engagement Activities included:

·        Pop-up market engagement events (4 events, 123 discussions)

·        Email invitations to provide feedback to:

Community Consultative Bodies Executive Committee members

Council Advisory Committee members

State Agencies - Illawarra Shoalhaven Leadership Executive

·        Social Media posts and two campaigns (17,923 total reach)

·        “Get Involved” website including online submissions (1,129 visits)

·        Highlighted projects map on Council’s webpage

·        2 Media releases and mentions by the Mayor on radio

·        Details in Council’s weekly e-news, website news items

·        Promotional flyers, posters at Council facilities

·        Competition to encourage submissions with a chance to win SEC vouchers

 

The combined engagement statistics for the public exhibition of the full draft suite of Integrated Planning & Reporting documents are included as Attachment 2.

 

Summary of Submissions and Recommended Changes

A total of 56 individual submissions on the CSP were received during the exhibition period. Within these submissions there was a variety of feedback, some which were joint submissions or more relevant to the Draft Delivery Program Operational Plan & Budget 2022/23. The DPOP & Budget had an additional 25 submissions, with all feedback considered across the suite of documents.

The summary of submissions is included in Table 1 and are accompanied with a staff comment, recommendation, or proposed action in response. Recommended changes to the CSP have been made to the document. 

Copies of each submission have also been provided in the Councillor Information Folder – the Reference number (Ref#) cross references the original submission (Attachment 3).

All submitters will receive a detailed email response following adoption of the final documents with additional staff comments alongside the summary provided in Table 1.

 

Table 1 - Submission items and recommended action

 

Ref #

Submission From

Subject/Comment/Issue

Staff comment / Recommended Action Required

S01

Community/Resident

Highlighting importance of issues in lower Shoalhaven River and query on Coastal Management Plan implementation.

The Lower Shoalhaven River Coastal Management Program is fully funded and listed in Council’s DPOP Capital Works Program, line item 153.

S02

Community/Resident

Update Outcome 2.2 as community values include the desire to preserve unique character of small coastal villages

RECOMMENDATION: Add an additional outcome to the CSP Priority 2.2 which reads: "Development contributes to and enhances neighbourhood character."

Council can consider future priority activity to support further work on character through the development of the Strategic Planning Works Program for consideration in July 2022.

S03

Community/Resident

Disapproval of Council's approval of Boongaree Nature Park, Mananga and tourist facility on Bong Bong Rd as the first step in destruction of Berry's village atmosphere.

Full staff response will be provided directly, summary included below:
The town of Berry was the subjected to the construction of a bypass road that threatened potential future growth of the town’s economy. Combined with an identified lack of quality green space / stopping location, Boongaree was proposed to address both issues - reconverting lost visitation and providing a platform for further growth into the future.
Council has worked collaboratively and consulted with the community in relation to Boongaree the recently opened Nature Play Park, to deliver an inclusive and accessible facility that would be enjoyed by locals and visitors for many years to come.

S04

Community/Resident

Complaint on the poor quality of the roads through Milton, Ulladulla & Mollymook, and lack of footpaths in Milton & Mollymook and difficulty of navigating with a pram.

Council is not in disagreement about the current state of the roads. As part of its advocacy for additional funds, Council has secured a promise from the incoming government to improve key roads including Forest Road ($8M), Callala Bay Road ($6M), Culburra Road ($14M), intersection works at Coonemia / Currarong / Callala Bay Roads ($2M), intersection works at Greenwell Point / Worrigee Roads, Wool Road ($3M) and St Georges Basin Rd ($2M).

This is in addition to the estimated $50M of Federal funding Council needed for the rehabilitation of the road network after the devastating March 2022 rainfall event.

The Draft DPOP also provides for $34.7 M of Capital upgrades to the road network and an increase of $2.6M on the existing road maintenance budget to bring that up to a total of $38.8M being spent in the 2022/23 financial year on the Shoalhaven road network.

S05

Community/Resident

Lack of footpaths in residential streets of Ulladulla to accommodate those using wheelchairs etc. Streets that have no kerb and guttering and lack of streetscape appeal.

Council has a Pedestrian Access and Mobility Plan (PAMP) strategy that identifies and prioritises the construction of new paths across the city. In the broader Milton-Ulladulla area alone there is over 118 path projects currently identified, and the plan is currently undergoing a review which could identify more projects in consultation with the community. Request has been noted but it will never be feasible or practical to build paths in every residential street, the strategy prioritises projects on the basis of demand and safety criteria (but Council ultimately determine the locations taking into consideration community feedback). Request for a path that links “all the way around Ulladulla and Mollymook” is already captured in the plan, along several demand corridors.

S06

Community/Resident

Suggested amendments to strengthen the language around climate change and clean energy generation.

RECOMMENDATION: A review of community feedback shows support for the following recommended amendments as suggested:
Under 'We want to see' - Additional point 'Clean energy generation'
Under 'Key Challenges' - Climate change Additional point 'impacts of drought on community, agriculture and industry'
The Key Priority 'Protection of the natural environment...' includes the climate by definition, no recommendation to amend Priority 2.3.
Recommended update to outcomes in 2.3 to address mitigation & adaptation -
• Achievement of greenhouse gas reduction targets for Council and community in order to mitigate climate change
• Collaboration with partners to adapt to a changing climate
Recommended amendment to measurement of GHG to read "Council's Greenhouse gas emissions (tonnes CO2e-) baseline 2020-21, reported annually"

"Number of Sustainable Energy Strategy initiatives implemented" is an annual reporting measure already included in the Operational Plan.

S07

Community/Resident

Suggested performance measure be the number of development applications that are approved by Council after receiving more than 50 (for example) opposing submissions.

* Development applications with significant public interest are usually called in by Councillors and reported (publicly) to Council for determination.
* Development applications with submissions, can be approved or refused, depending on the final assessment. The Council can choose to accept a recommendation or otherwise.
* The bulk of applications are dealt with under delegation and do not attract significant public interest / objection.
* All development applications are viewable on the DA tracking website, inclusive of public submissions.

S08

Community/Resident

Feedback on negative experiences and poor communication from Council.

Feedback on the draft Plan has been acknowledged and feedback on interactions with Council staff has been forwarded to relevant staff. To acknowledge the importance of improving Council's Customer Experience, a new Council objective in the Delivery Program will guide our work in this area - "Provide an excellent customer experience through responsive and inclusive communication channels and processes". This will encompass a whole of Council focus on improving the rate of resolution of customer enquiries at first contact and the quality and timeliness of communications.

S09

Community/Resident

Build inspiring places and spaces along the Nowra riverfront.

Feedback on the draft Plan has been acknowledged and forwarded to relevant staff for consideration in future planning.

S10

Community/Resident

Suggestion to include strategic statement on aged care service for retirees. Feedback on population forecasts and comment there is no provision for fauna/flora protection or policy regarding preservation of wildlife corridors or marine parks.

Full staff response will be provided directly, summary included below:
Council has an approved Sustainable Energy Policy committed to achieve net zero emissions by 2050. Amendments to this policy currently under development is to include climate change and more general sustainability strategies.

There are designated wildlife corridors in the Illawarra-Shoalhaven Regional Plan 2041. It has been acknowledged that the existing mapping is coarse and Council’s LEP Terrestrial Biodiversity Layer is misaligned with this. The NSW Department of Planning and Environment (DPE) are currently undertaking a comprehensive review of this layer and Council will incorporate the new mapping to inform decision making.

Development Applications submitted to Council are critically reviewed by appropriately qualified personnel in accordance with the Biodiversity Conservation Act 2016 (NSW) which is to establish a framework for assessing and offsetting biodiversity impacts from proposed developments. A biodiversity offsets scheme (BoS) delivers a transparent, consistent, and scientifically based approach to biodiversity assessment and offsetting. Nonetheless, avoidance of impacts on biodiversity is adopted as a first principle using the BoS as it is based on the ‘avoid, minimise, offset’ hierarchy to ensure that ‘no net loss’ of biodiversity occurs.

Vegetation clearing that may have occurred in recent years is attributed to previous legislation and pre-existing approvals. In this case, Council can hold proponents to the conditions of consent and try to work with them to achieve best practice.

In relation to Marine Parks, DPI have jurisdiction over these lands, but Council works very closely with them to achieve collaborative outcomes.

S11

Community/Resident

Commends work to revitalise the Nowra CBD and desire for more cultural activities. Highlights that Bomaderry is missing from location map and encourages revitalisation.

Feedback on the draft Priorities have been noted and suggestions for economic revitalisation have been distributed to relevant staff for consideration. Bomaderry has been added to the map as this was an oversight.

S12

Community/Resident

Would like to see reference to plans for addressing loss of trees, habitat and wildlife corridors caused by subdivision development, and a reinstatement of an effective tree preservation policy.

See response S10.

S13

Community/Resident

Concern people are buying in the area but aren't living here.

Feedback on the draft Plan has been acknowledged and forwarded to relevant staff for consideration in future planning.

S14

Community/Resident

More specific guidelines for land-use planning to retain the character of our villages.
Create community green space at 59 Owen St, Huskisson. No multi-storey carpark at 40 Owen St.
Include reference to existing community-led plans.
Include targets for gender parity in Council leadership roles & elected Council.

See recommendation in submission S02 regarding addition of new outcome.

A review of the zoning in this part of Huskisson is not currently being considered by Council.  The current zoning in the subject area is considered appropriate in the context of Huskisson as one of our urban centres (i.e., Huskisson-Vincentia area).  Multi-dwelling housing also provides opportunities for choice and diversity in housing options which is increasingly important in the current climate. 

Next year's Operational Plan has an item to "Define the parameters of the project to create a ‘Heart of Huskisson’ at 59 Owen Street Carpark Development" which will be undertaken by the City Futures directorate.

There was an assessment of the 5 community-led strategic plans from across the Shoalhaven as part of the review and update of the CSP. Acknowledgement of this is included in page 40 of the CSP.

Feedback has been provided to relevant staff for consideration in future planning.

S15

Community/Resident

Footpath/Bike path for Naval Parade, Erowal Bay.

See submission response S25

S16

Community/Resident

Signage to protect local wildlife killed by vehicles.
Less destruction of bushland for development.
Affordable rentals and less temporary tourist rentals. Suggestion to increase rates for holiday homes and discounts for making permanent affordable rentals available.

Council is collaborating closely with Wildlife Rescue South Coast to ensure that data on wildlife injuries and road kills is appropriately utilised to determine if the signage to prevent this from occurring is at the optimum level. Further information regarding work in this area will be sent to resident.

Holiday homes or short-term holiday rentals have been a feature of Shoalhaven for a long period, and they contribute to the tourism economy of Shoalhaven. Their use is currently regulated by NSW Government legislative framework. At present there is no legal ability to require them to pay higher rates or a surcharge, the funding from which could be put toward infrastructure or affordable housing.

Council was however, successful in having the following motion carried at the 2022 Local Government NSW Special Conference: “That Local Government NSW asks the NSW Government to consider legislative tools to assist councils with the impact of short-term rental platforms on local communities with respect to long-term rental availability”. As such this matter will continue to be pursued with the NSW Government through Local Government NSW to see what changes are possible and will be considered.

S17

Community/Resident

Nowra to Shoalhaven Heads bike path; crossing at Bundanon allowing round trip from North to South Nowra.

Full staff response will be provided directly, see S04.

S18

Community/Resident

Stop upgrades to Jellybean Park and Junction Court. Focus on fixing roads; more stores; things for people with disabilities to do; do mowing on time; more play centres; bring Big W to area; clean up the parks.

Feedback on regularity of cleaning and maintenance regimes has been provided to relevant staff for consideration. Council welcomes specific reports on particular issues at locations through the 'Report a Problem' on Council's website. Council continues to focus on advocating and promoting the Shoalhaven to attract increased investment and diverse new businesses and services to the area (Delivery Program Objective 3.1.02).

S19

Community/Resident

Feedback on Council maintenance regimes.
Amend LEP in Huskisson to stop multi-unit development.
Build a better Bay & Basin Council Depot & Office and Tourist Centre.

Feedback on regularity of cleaning and maintenance regimes has been provided to relevant staff for consideration. Council currently supports two Visitor Centres in the region, Nowra, and Ulladulla. There is also a great Visitors Centre in Jervis Bay supported by volunteers and several small businesses in our towns and villages that work with Council to provide information for visitors. Staff also attend events in our mobile visitor’s services van.

A review of the zoning in Huskisson is not currently being considered by Council.  The current zoning in the subject area is considered appropriate in the context of Huskisson as one of our urban centres (i.e., Huskisson-Vincentia area).

Council is determining the future strategy for upgrade of our Council depots. With the construction of the new Sanctuary Point Library and Community Hub, Council will be exploring options for the provision of customer services through the new facility.

S20

Community/Resident

Commercialise the riverfront.

Council is committed to moving forward with proposed urban design and planning control changes that will enable the redevelopment of the Nowra Riverfront Entertainment and Leisure Precinct. There are a number of technical studies underway which will support a future planning proposal to revise and update the planning controls (including zoning and building heights) for the Precinct.

S21

Community/Resident

Importance of building roads, schools, and urban infrastructure. Need more social housing.

Feedback on the draft Plan has been acknowledged and forwarded to relevant staff for consideration in future planning.

S22

Community/Resident

Safe footpaths, roads, play areas and facilities for our youth in North Nowra.

Council is currently confirming the budget and schedule for playground replacements in the 22/23 financial year. Pending the approved budget and scheduling of playground to be replaced, this presents opportunity for upgrade to an existing playground in North Nowra.

The provision of new social infrastructure is guided by Council’s Community Infrastructure Strategic Plan (CISP). The CISP is scheduled for review in 2022, which presents an opportunity for Council to review and consider any need for new facilities in our reserves. Given that this proposal may have further support from the community, this may be a matter that can be investigated upon the upcoming review of the CISP.

S23

Community/Resident

Concern for housing affordability and homelessness.
Essential facilities/services not sufficient during peak holiday times.
Questions need to ban dogs from all beaches for seabird nesting. 

The draft plan recognises the key challenge of housing affordability and Council is working towards the 4-year Objective in the Delivery Program of "Develop plans which will enable a variety of affordable and appropriately serviced housing options". Actions in this area include the continued implementation of the Affordable Housing Strategy and convening of the Homelessness Taskforce.

Tourism is one of the largest industries within the Shoalhaven Region with average expenditure in the region surpasses $1 billion dollars, well above average when compared to other LGAs throughout NSW. The industry supports an estimated 6,000 jobs in the region, ranking as one of the top four employment sectors for the Shoalhaven. Since Council has invested in Tourism within the region, tourism expenditure and tourism related jobs have only increased, giving considerable benefit to the local economy and local employment.

S24

Community/Resident

Concern for facilities closed off in Currarong - Little Windy Beach access, Mermaids Inlet, and access to Hare Bay where metal railings have been placed and large ugly blocks along road.

Council liaises with the Currarong Community Association regarding projects in the Currarong area. With regard to the blocks along Currarong Road and closing of accesses, these have been placed at the request of NSW Crown Lands to control access by 4WD vehicles onto the beach dunes which have been damaging endangered vegetation. The metal railings along Currarong Road are crash barriers. The required locations of these were identified during the design of the road and associated road safety audit.

S25

Community/Resident

Request for bike track in Erowal Bay to improve access for children, cyclists, and elderly scooter riders.

Council's Pedestrian Access and Mobility Plan (PAMP) and Bike Plan strategy will soon be undergoing a review which could identify more projects in consultation with the community. We note your comments, and share your vision of improving the connections to/from Erowal Bay.

The strategy already proposes improvements between Erowal Bay and the broader Bay & Basin cycleway network, and Council has already commenced discussions with National Parks & Wildlife Service with intent to ultimately secure an easement to facilitate a safe and efficient connection directly through the adjacent bushland (the existing track, which is proposed to be upgraded) through to Old Erowal Bay to access the existing regional cycleway. This proposed route will keep pedestrians and cyclists away from the higher speed, higher volume main road corridor. Whilst the road corridor is also likely to be improved over time with wider sealed shoulders, the strategy envisages providing pedestrians and cyclists with a safer and more direct alternative.

S26

Community/Resident

Request for cycle way path from Erowal Bay to join up with Vincentia Bay and Basin cycle pathway.

See response S25.

S27

Community/Resident

Request for footpaths at Greenwell Point Public School (Church/Jervis Streets). School needs designated bus parking area with a shelter.

A footpath is proposed on Jervis St outside the school with a shared user path proposed along Church Street. Following feedback, construction of the Jervis St footpath will be nominated as project for the 2023/24 financial year in Council’s draft 10-year Capital Listing. Design for the Church St path will be proposed for 2024/25 with construction in 2025/26.

In response to your request to construct a bus shelter closer to the school, the one outside 82 Greenwell Point Road was moved to this location in 2019 following a review of requirements in the area. There have not been any significant changes to activities in the area therefore a re-review has not been conducted.

S28

Community/Resident

More accessible, reliable electric public transport for Nowra.

One of the outcomes in CSP Priority 1.1 is improvement to transport services. The related objective in Council's Delivery Program - 1.1.04 - "Advocate for improvements to public transport services and provide support for community led initiatives that improve transport options". This includes actions for Council to engage with community service providers and the State Government to improve public transport and transport connectivity.

S29

Illawarra Shoalhaven Local Health District

Multiple points of feedback and suggestions with a health and wellbeing perspective.

Feedback has been discussed and reviewed by the Community Connections Team who would like to explore opportunities for partnership and collaboration with ISLHD moving forwards. Council's Wellbeing Plan is currently in development and there may also be scope for this work to be captured as part of this.

S30

Community/Resident

Request that CCB guidelines are updated to meet the changing needs of our times and be inclusive of our communities.

The Community Consultative Body Guidelines are due for review in 2022 and will be updated with consideration of community feedback received.

Council has committed to support community wellbeing by fostering active and healthy communities under priority 1.3 in the draft Delivery Program and Operational Plan 2022/23. The Community Connections team will do this by supporting all local networks including Community Consultative Bodies to improve equitable access to information and opportunities as per the Delivery Program Objective 1.3.04.01.

S31

Community/Resident

Suggestions to add additional partners and measurements to Priority 1.
Include affordable rental and social housing ratios in DAs.
Advocate for improved medical/employment/training services.
Add community engagement to build capacity of vulnerable cohorts (not all people have digital access).

Additional suggested implementation partners have been noted and will be utilised in delivering Council's programs.
Council has an approved Sustainable Energy Policy. Under this policy, Council has committed to achieve net zero emissions by 2050, with key interim targets of: Reducing our corporate emissions by 25% by 2025 and 50% by 2030, compared to 2015 levels.
Council's Delivery Program has the 4-year Objective 1.1.01 "Support communities to prepare for, respond to and recover from natural disasters, extreme weather and other emergencies" this includes number of programs delivered by Community Connections team which focus on activities which build community strength and capacity. Advocacy suggestions noted.

S32

Huskisson Woollamia Community Voice

Joint submission on CSP/DPOP.
Multiple items: Outlines differences between 'Huskisson Woollamia Speaks' and 'Bay and Basin Community led Strategic Plan' and CSP/DPOP. Outline items seen to not adequately included as key priorities, outcomes, or measures – in particular around protected environments,
balanced and sustainable development, over development, loss of our natural environment and climate change. Suggested measures and additional actions included in the plans.

Full staff response will be provided directly as multiple issues, queries and suggestions have been raised in the 18-page submission. Suggestions for additional actions and measures have been distributed to relevant staff for investigation and consideration in future revisions and updates of Council's plans. Questions raised will be answered in direct response.
The Strategic Planning Works Program is the tool/way Council prioritises, manages, and tracks the strategic land use related planning projects being undertaken by its Strategic Planning Team. The Program is reviewed and set on an annual basis and is aligned with the Integrated Planning & Reporting Framework, Local Strategic Planning Statement and tasks arising from the NSW Government Land Use Planning Activity.

S33

Community/Resident

Feedback on the strategic relationships embedded in the plan between the various social justice principles. Recommends the Bay and Basin Community Led Strategy Plan which demonstrates how the internal coherence of a Strategy Plan can be explored and implemented.
Would like to see integrated, holistic and value measurement approaches to planning.

Feedback on the draft Plan has been acknowledged and forwarded to relevant staff for consideration in future development of strategic planning documents. Council recognises the importance of community-led strategic plan and the value they can contribute to place-based planning objectives.

S34

Community/Resident

Query on Population forecasts. Outlines issues with key challenges - house affordability, natural environment, and pressure on bushland. Indicator of new businesses employing 1 person misleading and not in interest of Shoalhaven. Need leadership to sell the message that to protect the natural
environment we need to make better use of our existing urban environment.
No real recognition of cycleways. Suggested changes to Economic indicators and feedback on increased community engagement in decisions.

Population figures and forecasts are being confirmed, projected increase for over 60s by 2031 was incorrect and has been amended.

In 2022 Council will update its Community Engagement Policy which will address some of the issues raised in the submission. This policy will underpin all engagement by staff to ensure best practice methods are used in all community consultations. It must be noted that "engaging with the whole community", in particular, hard-to-reach audiences requires budget support and staffing resources which are not always available for each consultation.

Pathways wording has been amended to recognise "footpaths and cycleways". Further objectives on active transport connections are outlined in Council's Delivery Program.

Other suggestions noted by staff for future planning.

S35

Community/Resident

Should be major developments in town at Shoalhaven River - look to Mandurah Council on how they do this.

See response S20. Mandurah Council suggestion to be investigated by staff.

S36

Community/Resident

Requests footpaths in Greenwell Point around school and village; cycle path from Terara to Greenwell Point; complaint on quality of roads.

Council has a Pedestrian Access and Mobility Plan (PAMP). The PAMP provides the strategy, ranking methodology, and mapping to support the expansion of paths, pedestrian crossings, and bicycle infrastructure across the City. This is currently under review and community feedback is expected be invited later this year.

S37

Community/Resident

Positive feedback on document that is showcases the uniqueness of area and challenges community faces.

Feedback on the draft Plan has been acknowledged and noted by relevant staff.

S38

Community/Resident

Feedback that 'relaxed lifestyle' is at risk and concern on adequacy of infrastructure. Change has to be in keeping with locality respecting character and environment. Question whether new subdivisions require more than one access.

See response S02 in regard to character. Response on subdivisions will be provided directly to resident.

S39

Community/Resident

Requests urgent action on climate changes and renewable energy including expanding revolving energy fund and mobilise solar power on surplus Council land, encourage changes to DCP to improve sustainability and energy efficiency of new homes.

Council acknowledges, and is responding to, climate change through its policies and actions.  Council’s Sustainable Energy Policy sets out targets to reduce Council’s corporate greenhouse gas emissions and to increase the uptake of renewable energy across both Council and the Shoalhaven community.  Council is also currently working towards a new overarching Sustainability Policy and Action Plan to further drive our work into mitigating and adapting to climate change.  In 2021, Council updated its Climate Change Risk Assessment to provide a more accurate assessment of the impacts of climate change on our LGA.

Council has been actively working to increase the uptake of renewable energy both for its operations and in support of broader community initiatives.  Council worked with Repower Shoalhaven and Flow Power to enable Shoalhaven’s first utility-scale solar farm at South Nowra, which opened in late 2021.  Council continues to work with the local community and businesses to support additional renewable energy opportunities across the LGA.  For its own assets, Council is close to achieving a total of 1 MW of installed solar PV on its owned buildings, providing behind-the-meter benefits and savings.  There are also some procurement initiatives underway to secure future renewable electricity for Council’s sites and street lighting, which could halve Council’s greenhouse gas emissions before 2025.  Shoalhaven Council will continue to partner with local businesses, the community, and all levels of Government, to further reduce emissions and transition to a cleaner energy supply from renewable sources.

Council has recently amended its Development Control Plan to provide greater consideration of the protection of rooftop solar systems so that they are able to perform at their optimum level of efficiency.  Further, the NSW Government’s BASIX scheme is also in place which encourages sustainable residential development.

S40

Cancer Council NSW

Requests addition to Plan to recognise the value and co-benefits of shade and that there is currently lack of quality shade in public spaces. Commitment to plan and budget for built and natural shade in public spaces.

See response to submission S43.

S41

Advisory Group of the Bay and Basin Community Led Strategic Plan

Requests mention of community-led strategic plans and inclusion of a diagram of how the IP&R framework is applied and a statement of what has changed since 2027 CSP.

RECOMMENDATION: A new table referencing the important input of the Shoalhaven's Community-led strategic plans has been added to page 40 of the CSP alongside state and federal plans. 
Council's report from 9 May 2022 seeking approval for exhibition of the draft CSP 2032 contains a table which references the changes made from the CSP 2027 version.

S42

Community/Resident

Requests kerb & guttering in Culburra, green bins, and road maintenance.

The introduction of a green bin to all residents in the Shoalhaven is not currently part of Council’s waste strategy. An overview of common questions and answers related directly to green bins is available at Green Bins FAQ on Council's website.
It will never be feasible or practical to build footpaths in every residential street, Council's Pedestrian Access, and Mobility Plan (PAMP) and Bike Plan strategy will soon be undergoing a review which could identify more projects in consultation with the community. The strategy prioritises projects on the basis of demand and safety criteria (but Council ultimately determine the locations taking into consideration community feedback).

S43

Cancer Council NSW (Elizabeth King)

Same submission as S40.

At Shoalhaven City Council’s Strategy and Assets Committee meeting on 9 February 2021, a Notice of Motion was reported to Council regarding shade structures within playgrounds. As a result, Council resolved (MIN21.63):
That Council include in its forthcoming and subsequent budget considerations the provision of shade structures over its children’s playgrounds where practicable and appropriate.
As a result of the above resolution, Council now considers and budgets for shade over social infrastructure, where appropriate.

S44

Community/Resident

Request for more road infrastructure and more housing for low income or pensioners.

Council continues to focus on supporting more options for affordable housing through working with partners on implementing the Affordable Housing Strategy and addressing need for crisis housing though supporting the Homelessness Taskforce.

S45

Community/Resident

Safe walking and cycle paths between Erowal Bay, Vincentia, Huskisson and through to Booderee National Park.
Highlights echidna habitat for landscaping to protect.

See submission S25. Request regarding echidna habitat passed onto relevant staff for investigation and action.

S46

Community/Resident

Queries the measures to tackle flooding in Culburra Beach and asks about status of Lake Wollumboola Flood Study. Queries detail of bushfire management and mitigation measures.

This submission will be considered in the DPOP report - submission D21.

S47

Community/Resident

Encourage housing, make DAs easier, attention to roads maintenance.

Feedback on the draft Plan has been acknowledged and noted by relevant staff.

S48

Community/Resident

Concern about the loss of species and the shrinking natural environment. Requests measurement of how many hectares of native bushland has been retained and how many hectares of cleared land has been revegetated. 40-day DA determination measure should be only in relation to existing cleared land.

See submission response S10 in regard to biodiversity assessment. In terms of preventing clearing for subdivision, particularly Greenfields development, it would be extremely difficult to approve any future subdivisions without vegetation being removed unless the land was entirely used for agricultural purposes and suitably zoned.  In the assessment of any development, reports are prepared to ascertain the extent of vegetation removal and if the impacts are significant and irreversibly. Sometimes the impacts can be offset. Council collects information on subdivisions via the assessment process concerning the extent of clearing required. This information is in technical reports. Most Greenfields subdivisions are not resolved in 40 days given the complexity of these types of applications. Additionally, it is not uncommon for applications to be amended during the assessment. Most of the larger historic subdivisions have been approved by the NSW State government - Bayswood, Mundamia, Culburra, Manyana and Narrawallee. The more recent Greenfields developments, such as Moss Vale Rd, have been dealt with by the Council, excepting one, which was been put to the Regional Planning Panel. Reports are available on Council's tracking webpage or State equivalent. 

S49

Cancer Institute NSW

Suggestions for inclusion of importance of built and natural shade into relevant sections of the CSP outcomes.

See submission response S43.

S50

Red Head Villages Association

Support for Mayoral Message.

Requests funding for Bendalong Road upgrades. The SCC Planning instrument for urban densification negatively impacts on Red Head Villages (e.g., DA22/1281).

Commends Section 4 ‘Effective, Responsible & Authentic Leadership’ as a pro-active approach toward open, transparent, accountable, and inclusive Local Government administration and management.

Full staff response will be provided directly as queries will require further investigation by staff. Funding request for Bendalong Road is noted for forward planning. Maintenance works will continue to be undertaken in the interim until funding is identified.   
A DA must be assessed having regard to the strategic planning framework. If a DA is assessed and found to be satisfactory, a positive recommendation will be made. In terms of setting a precedent, each application is assessed on merit having regard to the site attributes and the planning framework in place at the time of assessment. Whether or not other dual occupancies will be built is contingent on a number of factors, including but not limited to land availability, the aspirations of the owner(s) and market conditions. Council cannot control tenancy arrangements whether people choose to owner occupy, rent their home either for the long or short term in the development assessment and determination process.  Air BnB is controlled and managed by the NSW State government’s regulatory framework.

S51

Community/Resident

Queries detail and suggestions for Council's actions to address climate change.

Suggestions on climate change action has been distributed to staff for consideration. Council is currently working towards a new overarching Sustainability Policy and Action Plan to further drive our work into mitigating and adapting to climate change. Shoalhaven Council will continue to partner with local businesses, the community, and all levels of Government, to further reduce emissions and transition to a cleaner energy supply from renewable sources.
As part of its broader sustainable living program Council will offer workshops and programs which support local residents to reduce energy and water use, save money, discover the solar potential for their homes and businesses, and take action on climate change.

S52

Kangaroo Valley Community Consultative Body

Question on Community Survey. Queries the capital works program and specifically road projects for Kangaroo Valley on the forward capital works program.

Full staff response will be provided directly as multiple queries in relation to budget allocations will require further investigations. Council undertakes community survey every 2 years with the next due in October 2022. The baseline figures in the CSP measures are taken from the June 2020 survey results which are reported to Council and the community - last survey can be accessed on Council's website. Council reports progress on delivering annual actions and performance against measures through the Quarterly Performance Report, Budget Review and Capital works report.

S53

Our Future Shoalhaven

Concern on lack of action to preserve the environment and proposed developments. Outlines feedback, suggestions, and queries on the selection of measures with a focus on clarity and consistency. 

RECOMMENDATION: reinstate updated water quality measure Key Priority 2.3: "Percentage of routine water samples that meet the AS/NZ water quality guidelines as captured by Aqua Data."

Full staff response will be provided directly, summary comments below:
Councils are no longer required to prepare a separate State of the Environment Report, instead environmental outcomes are reported through tracking measures indicated in the Community Strategic Plan and through Annual reporting.
Request noted for providing improved access to Council documents through its website.

See S02 recommendation regarding new outcome on character. Question being investigated for community survey in regard to character and development.

The number of threatened species in the Shoalhaven LGA is not a leading indicator. It is considered a lagging indicator as it not data maintained by Council (but rather NSW Department of Planning and Environment) and the number of threatened species may increase in response to negative environmental implications.

S54

Community/Resident

Suggestion for developers to be permitted to build attractive apartment accommodation within the CBDs to offer housing to combat reduced trade from those working from home following the pandemic. Suggests removing the word 'relaxed' from the community vision as it may contribute to 'dumbing down' the character of the Shoalhaven community.

Feedback on the Community Vision has been noted. No recommended changes proposed to the vision.

S55

Community/Resident

Queries on Crime Prevention Plan; ensure that the village character across Shoalhaven is retained and objection to over-development.

While policing is not a function of councils, Council staff work very closely with NSW Police on initiatives to improve Community Safety and the perception of safety in the public domain. Councils Crime Prevention Plan expires in 2023 and will be replaced by a Community Safety Plan which will encompass some Crime Prevention initiatives.
See submission S02 regarding character.

S56

Community/Resident

Query on Council's activities.

Comment has been noted. Council's Delivery Program Operational Plan outlines the programs, projects, and services that Council will deliver to support the key priorities and outcomes outlined in the Community Strategic Plan.

 

Editorial and Formatting Changes

As part of the exhibition process some minor editorial and formatting changes were identified and made to the final draft document. These include the minor updating of the progress measures to make it clearer what we will measure. The final draft Community Strategic Plan - Shoalhaven 2032 is included as Attachment 1.  

 

Monitoring and Evaluation

Some of the detailed submissions referenced the proposed progress measures, queried their relevance, suggested alternatives, or new inclusions. The recommended changes supported for inclusion in this version of the plan are outlined above and included in the updated draft, however all suggestions will be further investigated as part of development of the overall monitoring and evaluation plan. 

 

Conclusion

Following the consideration of the submissions received and the identification of the required changes, it is recommended that the final draft Community Strategic Plan - Shoalhaven 2032 be endorsed by Council.

 


 

 Ordinary Meeting – Monday 27 June 2022

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 Ordinary Meeting – Monday 27 June 2022

Page 1

 

 

CL22.263   Local Government Remuneration Tribunal - Determination of Councillor and Mayoral Fees 2022/2023

 

HPERM Ref:       D22/237879

 

Department:       Business Assurance & Risk

Approver:           Kevin Voegt, Director - City Performance 

Attachments:     1.  Annual Report and Determination - Local Government Remuneration Tribunal 2022 (under separate cover)   

Reason for Report

To note and consider the attached determination from the Local Government Remuneration Tribunal, and to adopt the fees payable to the Mayor and Councillors for the 2022/2023 financial year.

 

Recommendation

That Council:

1.    Note the Local Government Remuneration Tribunal’s Annual Report and Determination dated 20 April 2022.

2.    Adjust the Councillor Fee payable to Councillors from 1 July 2022 to 30 June 2023 to be $25,310 and the Additional Mayoral Fee to be $62,510 being the maximum payable.

3.    Not provide the additional Mayoral fee (in full, or in part), to the Deputy Mayor when the Deputy Mayor is required to act in the position of Mayor during periods of approved leave.

 

 

Options

1.    As Recommended

Implications: This will adjust the Fees for Councillors and Additional Mayoral Fee to the maximum permissible in line with the determination of the remuneration tribunal for the 2022/2023 financial year.

If adopted as recommended this will also rescind part 3 of previously adopted resolution MIN22.70 as detailed within the report.

 

2.    Adjust the Councillor and Mayoral fees to a lesser amount within the minimum and maximum amounts as outlined in the report.

 

Background

The Local Government Remuneration Tribunal has determined an increase of 2% to Mayoral and Councillor fees for the 2022/2023 financial year, with effect from 1 July 2022.

Councillors’ Fees

Section 241 of the Local Government Act 1993 (the Act) requires the Tribunal to determine each year the maximum and minimum amounts of annual fees payable during the following year to Mayors and Councillors. Section 248 and 249 of the Act require Councils to fix and pay an annual fee based on the Tribunal’s determination.

The relevant provisions of the Act are outlined below:

248 Fixing and payment of annual fees for councillors

(1)          A council must pay each councillor an annual fee.

(2)     A council may fix the annual fee and, if it does so, it must fix the annual fee in accordance with the appropriate determination of the Remuneration Tribunal.

(3)          The annual fee so fixed must be the same for each councillor.

(4)     A council that does not fix the annual fee must pay the appropriate minimum fee determined by the Remuneration Tribunal.

 

249 Fixing and payment of annual fees for the mayor

(1)          A council must pay the mayor an annual fee.

(2)     The annual fee must be paid in addition to the fee paid to the mayor as a councillor.

(3)     A council may fix the annual fee and, if it does so, it must fix the annual fee in accordance with the appropriate determination of the Remuneration Tribunal.

(4)     A council that does not fix the annual fee must pay the appropriate minimum fee determined by the Remuneration Tribunal.

(5)     A council may pay the deputy mayor (if there is one) a fee determined by the council for such time as the deputy mayor acts in the office of the mayor. The amount of the fee so paid must be deducted from the mayor's annual fee.”

 

Councils are to fix Councillor and Mayoral fees for financial year based on the Tribunal’s Determination. The level of fees paid will depend on the category which is applied to the Council. If a Council does not fix a fee, the Council must pay the minimum fee determined by the Tribunal.

For the current financial year, the Determination of the Tribunal is that Councils in the Regional Centre Category (Including Shoalhaven) may fix the 2022/2023 annual fee for Councillors between $14,380 (minimum) and $25,310 (maximum). The Mayoral Additional Fee has been set at between $29,920 (minimum) and $62,510 (maximum). The Council may set any figure for the fees within this range.

The Councillor and Mayoral fee adoption is distinct and separate to the payment of expenses and provision of facilities to Councillors. The Mayoral Fee is an amount paid to the Mayor in addition to the Councillor Fee.

 

Payment for the Deputy Mayor

Section 249(5) Local Government Act allows Council to elect to pay the Deputy Mayor a fee when acting in the office of the Mayor. The amount of the fee must be deducted from the Mayor’s annual fee. 

In January 2022 a request was made to all NSW Councils requesting their position on paying the Deputy Mayor fees deducted from the Mayoral fee - 38 responses were received.

·    22 Councils do not pay the Deputy Mayor fees.

·    7 Councils pay 100% of additional Mayoral fee whilst the Deputy Mayor is acting (some with provisions relating to the length of time acting as Mayor).

·    7 Councils pay a percentage of the Mayoral Fee ranging from 10% to 50%.

·    2 Councils pay a specific amount - $1,200 and $3,621 respectively.

The matter of the Deputy Mayoral Fee is one for consideration and determination by the Council. This may also be a matter that the Council could consider at the required time when there is an extended absence of the Mayor.

Council at its Ordinary Meeting, 7 February 2022 resolved to Pay 100% of the additional Mayoral fee to the Deputy Mayor when the Deputy Mayor is required to act in the position of Mayor during periods of approved leave.

RESOLVED (MIN22.70)

That Council:

1.    Determine the Fees payable as follows

a.    The Maximum payable Councillor fee of $24,810 p.a. to be applied pro-rata from 23 December 2021 to 30 June 2022.

b.    The Maximum payable Additional Mayoral Fee of $61,280 p.a. being applied for the period of 23 December 2021 to 30 June 2022.

2.    Pay 100% of the additional Mayoral fee to the Deputy Mayor when the Deputy Mayor is required to act in the position of Mayor during periods of approved leave.

3.    Commence Superannuation contributions to Councillors from 1 July 2022.

 

Following recent discussions with both the Mayor and the Deputy Mayor it is recommended to no longer provide the additional Mayoral fee to the Deputy Mayor when the Deputy Mayor is required to act in the position of Mayor during periods of approved leave. If the recommendation as presented in the report is resolved this will effectively rescind part 2 of the previously resolved minute (MIN22.70).

 

Superannuation for Councillors

On 16 May 2021, legislation was passed in the NSW Parliament to introduce superannuation payments for Councillors in NSW. The Local Government Amendment Act 2021 addresses a longstanding inequity in Local Government by providing Councils with the option to make superannuation payments to Mayors and Councillors in addition to their annual fees from July 2022. This decision was made after a lengthy campaign to acknowledge the contribution of Councillors.

The relevant amendment to the Local Government Act 1993 states:

Section 254B Insert after section 254A—

254B Payment for superannuation contributions for councillors

1)   A Council may make a payment (a superannuation contribution payment) as a contribution to a superannuation account nominated by a Councillor, starting from the financial year commencing 1 July 2022.

2)   The amount of a superannuation contribution payment is the amount the Council would have been required to contribute under the Commonwealth Superannuation Legislation as superannuation if the Councillor were an employee of the Council.

3)   A superannuation contribution payment is payable with, and at the same intervals as, the annual fee is payable to the Councillor.

4)   A Council is not permitted to make a superannuation contribution payment—

a)   unless the Council has previously passed a resolution at an open meeting to make superannuation contribution payments to its Councillors, or

b)   if the Councillor does not nominate a superannuation account for the payment before the end of the month to which the payment relates, or

c)   to the extent the Councillor has agreed in writing to forgo or reduce the payment.

5)   The Remuneration Tribunal may not take superannuation contribution payments into account in determining annual fees or other remuneration payable to a Mayor or other Councillor.

6)   A person is not, for the purposes of any Act, taken to be an employee of a Council and is not disqualified from holding civic office merely because the person is paid a superannuation contribution payment.

7)   A superannuation contribution payment does not constitute salary for the purposes of any Act.

8)   Sections 248A and 254A apply in relation to a superannuation contribution payment in the same way as they apply in relation to an annual fee.

9)   In this section—

-Commonwealth superannuation legislation means the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth.

-Superannuation account means an account for superannuation or retirement benefits from a scheme or fund to which the Commonwealth Superannuation Legislation applies.

 

The wording of the legislation sets out that the Council may elect to either provide a Superannuation Payment at the rate set out in the Superannuation Guarantee (equal to 10.5% of annual fees from July 2022) or not provide a superannuation payment. The superannuation payment is calculated on the Fees paid to Councillors (and for the Mayor the additional Mayoral Fee in addition to the Councillor Fee). Any amounts reimbursed to Councillors in the form of expense payments under the Council Members Payment of Expenses and Provision of Facilities Policy are not related to the superannuation calculation.

Council at its Ordinary Meeting, 7 February 2022 resolved to apply 10.5% Superannuation Payment from 1 July 2022.  (Refer MIN22.70 above)

Councillors have been requested to provide superannuation fund details to Council to enable the commencement of superannuation payments from 1 July 2022.

Community Engagement

Council is not required to undertake community consultation in relation to the adoption of the fee amendment determination process, as it is based on a published report and the process undertaken by the Tribunal.

 

Financial Implications

Current fees paid to Shoalhaven City Councillors and Mayor

CATEGORY

Councillor Annual Fee

Mayor Additional Fee*

Regional Centre

$ 24,810

$61,280

 

Proposed fees to Shoalhaven City Councillors and Mayor 2022/2023 financial year:

2022/2023 Determination - Pursuant to Section 241 of Fees for Councillors and Mayors

CATEGORY

Councillor Annual Fee

Mayor Additional Fee*

Minimum

Maximum

Minimum

Maximum

Regional Centre

$ 14,380

$ 25,310

$ 29,920

$ 62,510

*this fee must be paid in addition to the fee paid to the Mayor as a Councillor/Member (s429 (2)).

The total financial impact of the recommendation is summarised below (not including the relative increase to superannuation arising from fee increases)

Councillor / Mayoral Fees total – All Councillors

Net Increase in Fees

Current (2021/2022)

Proposed (2022/2023)

$383,810

 $ 391,540 (based on maximum Annual Fee paid)

 $7,730 total 

 

 


 

 Ordinary Meeting – Monday 27 June 2022

Page 1

 

 

CL22.264   Code of Meeting Practice for Adoption

 

HPERM Ref:       D22/249588

 

Department:       Business Assurance & Risk

Approver:           Kevin Voegt, Director - City Performance 

Attachments:     1.  Final Code of Meeting Practice for Adoption (under separate cover)   

Reason for Report

To adopt the Draft Code of Meeting Practice that was placed on Public Exhibition and to report on the submissions received.

 

Recommendation

That Council

1.    Adopt the Draft Code of Meeting Practice as provided as attached to the report noting that no submissions were received during the public exhibition period.

2.    Schedule a Public Forum (as required) at 4.00pm prior to the commencement of each Council Ordinary Meeting at 5.30pm.

 

 

Options

1.    As recommended

Implications: Should the Council not adopt a new Code of Meeting Practice incorporating provisions for remote attendance by the 30 June 2022, Councillors will be unable to attend meetings remotely until such time as a Code including those provisions is adopted. Council is required by the OLG to adopt a Model Code of Meeting Practice within 12 months of the election.

2.    Amendments be made to the Code of Meeting Practice prior to adoption.

Implications: In accordance with the provisions of Section 362 of the Local Government Act, further amendments must be publicly advertised if they make substantial change or propose to amend mandatory provisions of the Model Code. Any resolution to amend the Code must also include direction as to advertisement of the proposed changes to the Code.

Background

At the Council Meeting held on 28 March 2022, Council considered a report outlining the Draft Code of Meeting Practice and resolved (MIN22.213)

That

1. In accordance with Section 361 of the Local Government Act, the Draft Code of Meeting Practice be placed on public exhibition to obtain community feedback.

2. A report be provided at the completion of the exhibition period, outlining the submissions received and providing a Final Draft Code of Meeting Practice for adoption by the Council.

3. Council amend its Draft Code of Meeting Practice (attached) Part 4 – Public Forum to be held Monday at 4.00pm prior to the Council Ordinary Meeting.

As outlined in the previous report to the Council, the Draft Code reflects the outcome of a Councillors Workshop on the Code of Meeting Practice which was held on 17 March 2022

As prescribed by the Office of Local Government, Council is required to adopt the Code within 12 months of the election.

In accordance with the requirements and resolution of the Council, the Draft Code of Meeting Practice was placed on public exhibition for 42 days being from 1 April 2022 to 12 May 2022.

Submissions:

There were no submissions received from members of public with respect to the Draft Code of Meeting Practice.

By way of reminder, there are several key changes between the Council’s Current Code and the Model Code of Meeting Practice. They can be summarised as follows:

 

·    The new Model Meeting Code contains new provisions that allow Councils to permit individual councillors to attend meetings by audio-visual link and to hold meetings by audio-visual link in the event of natural disasters or public health emergencies.

The provisions governing attendance at meetings by audio-visual link are non-mandatory. Councils can choose not to adopt them or to adapt them to meet their own needs.

·    Amendments have also been made to the provisions governing the webcasting of meetings and disorder at meetings to reflect amendments to the Regulation since the previous iteration of the Model Meeting Code was prescribed.

·    An amendment has also been made to the Model Meeting Code implementing recommendation 6 in ICAC’s report in relation to its investigation of the former Canterbury City Council (Operation Dasha).

ICAC had recommended that the Model Meeting Code be amended to require that Council business papers include a reminder to Councillors of their oath or affirmation of office, and their conflict of interest disclosure obligations.

·    The repeal date for section 237 of the Regulation which exempts Councils from the requirement under clause 5.2 of the previous iteration of the Model Meeting Code for Councillors to be personally present at meetings in order to participate in them has been extended to 30 June 2022. This is to allow Councils additional time to exhibit and adopt new codes of meeting practice containing provisions allowing attendance by audio-visual link at meetings.

If councils have not adopted a new meeting code that allows Councillors to attend meetings by audio-visual link, they will not be permitted to do so after that date.

·    The Model Code of Meeting Practice outlines a range of Non-Mandatory provisions with respect to Public Forums (or deputations). These provisions are of distinct difference to the current provisions and practice of Council with respect to Deputations. They are based on a firm point outlined in the Model Code that states:

“Note: Public forums should not be held as part of a Council or Committee meeting. Council or Committee Meetings should be reserved for decision-making by the Council or Committee of Council.”,

It is recommended to implement a Public Forum separate to Council’s Ordinary Meeting in line with the firm point outlined in the Model Code (noted above), this would allow for staff and Councillors to reflect on the information provided, and to seek clarification / answers to questions raised prior to the Ordinary meeting.

If the recommendation is supported, Council, upon receipt of a deputation request that is in line with the attached code of meeting practice, will schedule a Public Forum at 4.00pm prior to the Council Ordinary Meeting commencing at 5.30pm.

Further suggested changes post exhibition:

Followed further detailed review and consideration by staff (as outlined in the attached document):

1.       It is proposed to remove the non-mandatory inclusion of a requirement for those approved to speak at a public forum (deputation) to submit written, visual or audio materials prior to the public forum. On reflection this was considered to be an overly restrictive measure given the timeframes involved. The provision in the initial draft was as follows:

“4.9  Approved speakers at the public forum are to register with the council any written, visual or audio material to be presented in support of their address to the council at the public forum, and to identify any equipment needs no later than 9.30am on the day of the public forum. The General Manager or their delegate may refuse to allow such material to be presented.”

2.       References to the General Manager were replaced with Chief Executive Officer for clarity. The term CEO was also added to the definitions.

These two (2) amendments are not considered substantial enough to warrant further public exhibition.

Community Engagement

Submissions from the public were called via Council’s Documents on Exhibition page prescribed period from 1 April 2022 until 12 May 2022, it was advertised in the South Coast Register and the Milton Ulladulla Times on 13 April, 20 April, 4 May and 11 May. It was a News Feed Item on the Council Webpage and was advertised through social media platforms LinkedIn and Facebook.

Policy Implications

Advertisement and adoption of the Code of Meeting Practice is required to be in accordance with the relevant provisions of the Local Government Act provided below:

Section 361 and 362 of the Local Government Act 1993 states:

361   Preparation, public notice and exhibition of draft code

(1)    Before adopting a code of meeting practice, a council must prepare a draft code.

(2)    The council must give public notice of the draft code after it is prepared.

(3)    The period of public exhibition must not be less than 28 days.

(4)    The public notice must also specify a period of not less than 42 days after the date on which the draft code is placed on public exhibition during which submissions may be made to the council.

(5)    The council must publicly exhibit the draft code in accordance with its notice.

362   Adoption of draft code

(1)    After considering all submissions received by it concerning the draft code, the council may decide:

a.   to amend those provisions of its draft mandatory code that are non-mandatory provisions, or

b.   to adopt the draft code as its code of meeting practice.

(2)    If the council decides to amend its draft code, it may publicly exhibit the amended draft in accordance with this Division or, if the council is of the opinion that the amendments are not substantial, it may adopt the amended draft code without public exhibition as its code of meeting practice.

 

If the Council does not adopt a new Code of Meeting Practice within the 12 months, any provisions of the council’s adopted meeting code that are inconsistent with the mandatory provisions of the Model Meeting Code prescribed under the Regulation will automatically cease to have any effect to the extent that they are inconsistent with the mandatory provisions of the Model Meeting Code.

The provisions within the Code of Meeting Practice are related to the Code of Conduct, in particular in relation to conduct at meetings and conflict of interest management.  Council is also required to adopt a Code of Conduct and Procedures within 12 months of election.  It would be beneficial for these policy documents to be adopted within similar timeframes.

 


 

 Ordinary Meeting – Monday 27 June 2022

Page 1

 

 

CL22.265   Code of Conduct and Code of Conduct Procedures

 

HPERM Ref:       D22/203450

 

Department:       Business Assurance & Risk

Approver:           Kevin Voegt, Director - City Performance 

Attachments:     1.  Code of Conduct Policy (under separate cover)

2.  Code of Conduct - Procedures (under separate cover)   

Reason for Report

Council is required to adopt a  Code of Conduct and Code of Conduct Procedures within the first 12 months of the Ordinary Election.  The report outlines Draft Documents for endorsement of the Council.

 

Recommendation

That:

1.    The draft Code of Conduct (Attachment 1) be adopted with amendments as outlined in the report

2.    The Code of Conduct Procedures (Attachment 2), being the procedure last adopted in December 2020 be reconfirmed without amendment. 

 

 

Options

1.    As recommended

Implications: The Code and Procedures will be adopted with the one change made to the Code of Conduct and no amendments made to the Code of Conduct Procedures as outlined in the report. 

 

2.    Council amend the Code of Conduct or the Code of Conduct Procedures before adoption.

Implications: Any amendments must not contain provisions that are inconsistent with the mandatory provisions contained within the Model Code of Conduct or Procedures outlined by the Office of Local Government.

Should the Council wish to pursue amendments to either document, the appropriate course of action would be for the Council to receive a report containing specifically worded provisions which would validly address the intent of proposed amendments.  

 

3.    Council place the Code of Conduct on public exhibition prior to adoption

Implications: There is no requirement for public exhibition of this Code under the Local Government Act, given the content is required to align with the Model Code of Conduct.

 

Background

Section 440 of the Local Government Act, 1993 outlines the requirements for the Council to adopt a Code of Conduct and Procedures for the Code of Conduct within the first 12 months of the commencement of each Council term which are based upon and not inconsistent with the Model Code of Conduct for Councils in NSW and Model Procedures for the Administration of the Model Code of Conduct for Councils in NSW .

 

Code of Conduct

Attachment 1 to this report is a Draft Code of Conduct for adoption by the Council. The only amendment to the Draft Code from the current version which was last amended by the Council in December 2020 is the omission of the previous Clause 3.29.

The subject Clause was as follows:

3.29 When a Councillor is made aware of the inappropriate distribution, by a third party, of their personal emails or written correspondence to the media or social media, then that Councillor has an obligation to seek the withdrawal of the unauthorised communication.

 

It is proposed that Clause 3.29 be omitted from the Code of Conduct as it is considered to be inconsistent with the Model Code. The inconsistency arises as it relates to personal emails and correspondence which may fall outside the scope of the Code of Conduct and does not align with the available sanctions applicable for proven breaches under the Procedures. It is a stand alone clause with very limited possible application and which is not considered to require amendment or replacement.

 

For the benefit of newly elected Councillors, the current Code of Conduct (and therefore the draft provided at Attachment 1 for adoption) includes the following additions and adjustments to the Model Code of Conduct for Councils in NSW:

·    Council Values have been included:

·    The introduction has been amended to reflect the content of the document as the Council’s Code of Conduct, based on the Model Code.

·    The document provides reference notes to other Policies or Procedures of the Council throughout

·    Under Part 3 additional provisions have been added under the heading of ‘Public Comment’ (3.23 to 3.28) to provide additional clarification of requirements around public speaking.

Council may include additional provisions that are more onerous than the Model Code of Conduct. As noted in the Model Code of Conduct “a council’s … adopted code of conduct has no effect to the extent that it is inconsistent with the Model Code of Conduct. However, a council’s adopted code of conduct may prescribe requirements that are more onerous than those prescribed in the Model Code of Conduct.”

 

Code of Conduct Procedures

Attachment 2 to the Report provides the current Code of Conduct Procedures for readoption which reflect the Model Procedures for the Administration of the Model Code of Conduct for Councils in NSW without amendment. https://www.olg.nsw.gov.au/wp-content/uploads/2020/08/Procedures-for-the-Administration-of-the-Model-Code-of-Conduct-2020.pdf

Community Engagement

Community Engagement is not required for adoption of the Code of Conduct or Procedures given the requirements for consistency with Model documents limits amendments that can validly be made. Once a new version is adopted Council’s Website will be updated.

 

Policy Implications

The proposed removal of Clause 3.29 of the Code is not significant and will not impact on other documents. 

The provisions within the Code of Conduct and Procedures are related to the Code of Meeting Practice, Council is also required to adopt a Code of Meeting Practice by 30 June 2022. The Council resolved to place a Draft Code of Meeting practice. It would be beneficial for these policy documents to be adopted within similar timeframes.

 

 


 

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CL22.266   Petitions To Council Policy for Reaffirmation

 

HPERM Ref:       D22/189911

 

Department:       Business Assurance & Risk

Approver:           Kevin Voegt, Director - City Performance 

Attachments:     1.  Petitions to Council Policy   

Reason for Report

All Public Policies are to be submitted to Council within 12 months of the election of a new Council.

 

Recommendation

That Council reaffirm the Petitions to Council Policy with no changes proposed.

 

 

Options

1.    Adopt the recommendation as written

Implications: No changes proposed.

 

2.    Not adopt the recommendation

Implications: Council can request further details, seek further community input, or make other changes.

 

Background

The Petitions to Council Policy is attached to this report for reaffirmation, there are no changes proposed.

The Policy was first adopted by the Council in April 2021 following public consultation. No required changes have been identified since adoption.

The Policy aligns with the following key priorities of the Community Strategic Plan:

4.2     Provide advocacy and transparent leadership through effective government and administration

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

 

Community Engagement

There is no requirement for further public exhibition of this Policy given no changes have been identified. However, Council may choose to do so, should they consider any additional changes of significance.

 

Policy Implications

The Policy is proposed for reaffirmation without amendment, therefore there are no implications or deviation from current approved Policy.

 


 

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CL22.267   Community Donations Policy - For Adoption

 

HPERM Ref:       D22/183753

 

Department:       Business Assurance & Risk

Approver:           Kevin Voegt, Director - City Performance 

Attachments:     1.  POL22/76 Final Draft Community Donations Policy

2.  Final Draft Community Donations Guidelines & Application Form

3.  Final Draft Assessment Panel Guidelines - Community Donations Policy

4.  Submissions - Draft Community Donations Policy and Guidelines and Application Form (councillors information folder)   

Reason for Report

To provide an overview of submissions received during the public exhibition and provide the Final Draft Community Donations Policy, Guidelines and Application Form 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 Final Draft Community Donations Policy, Guidelines and Application Form provided as attachments to the report

3.    Advise all current recipients of the changes to the Donations Policy and timetable for applications for 2022/2023.

 

 

Options

1.    As recommended

Implications: The new Community Donations Policy, Guidelines and Application Form 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 2012/2023 to allow determination by Council for commencement of the new financial year.

2.    The Community Donations Policy, Guidelines and Application Form are adopted with further amendments

Implications: Not known

3.    Not adopt the Policy at this time

Implications: Should the Council not adopt a new Community Donations Policy, Guidelines and Application Form at this time, direction will be required as to how the donation funding for 2022/2023 will be dealt with under the current Policy (POL16/181). 

That may be to (a) continue with the current policy or (b) parts of the current policy.

 

Background

Council at its Ordinary Meeting, Monday 14 March 2022, Council considered a report outlining the Draft Community Donations Policy, Guidelines and Application Form and resolved the following (MIN22.167):

That:

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

4.    The Policy be renamed as the “Community Donations Policy”

5.    Due to taxation requirements, the Policy be limited to apply to only organisations which hold an ABN.

6.    The following parts of the application form be amended as follows:

a.    At question 8 – remove commercial undertaking

b.    The requirement for applicants to include financial statements of income and expenditure and balance sheet in support of applications

c.    Appropriate due diligence questions be asked in relation to expenditure of donation funding.

d.    Application form to request ABN Number of applicants under “details of Organisation/Individual”

e.    “Does this project require council approval? If so complete part 9”. Be inserted above question 9 in the application

7.    It be made explicit in the Policy that organisations will be required to provide financial statements as part of the application process

 

As outlined in the previous report to the Ordinary Meeting, 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 1 April to 29 April 2022. During this time current recipients were advised of the Draft Policy and invited to make submissions.

During the submission period a Get Involved Page was established, the page was visited 30 times and the document was downloaded a total of 3 times.

 

Submissions:

In accordance with the Council resolution, the Draft Policy was placed on public exhibition and all current recipients were advised in writing of the exhibition. The table below outlines the three (3) submissions (provided for Councillors Information within Attachment 4) received during the exhibition period (and staff responses). There was one (1) additional late submission which was also been outlined below and included within the attachment.

 

 

Submission From

Comments within Submission

Staff Comment

RSPCA - Shoalhaven Volunteer Branch

The draft policy “appears to be geared at defined projects or events, thus precluding funding for ongoing activities such as those offered by our Volunteer Branch”

“The level of community veterinary assistance for any given year is dynamic but nonquantifiable upfront.”

“We are hopeful that Council will continue to support our Volunteer Branch.”

The Certification & Compliance team have confirmed that this donation could continue to occur operationally by the Certification & Compliance team and be managed separately to the annual Community Donations Budget.

It is recommended that $2,000 be transferred from the donations budget to the Certification & Compliance team to facilitate this outcome.

Callala Bay Community Association

Concern regarding timeline for applications:

applications for financial assistance and support via donations, sponsorships and subsidies should be made during February or March of any given year.”

Presently Council grants an annual subsidy to CCB's and community associations (such as ours, Callala Bay Community Association (CBCA)) that subsidy, presently $500, occurring late in each year (October/November).

Council also invites expressions of interest in a subsidy to enable those community associations to host an Australia Day event, those expressions of interest being invited generally in October and, provided certain criteria are met, funds are made available soon after. In past years, CBCA and possibly other CCB's, have also conducted Christmas Carols events. Considering that the aforementioned events and their associated subsidies occur very late in any given year, the practicality of arranging those subsidies in February or March is questionable and perhaps warrants reconsideration. An amendment to the policy may be required.

Staff response provided to the Callala Bay Community Association:

“Please note as part of this review, the payments to CCBs of $500 were determined to be dealt with operationally, and not as part of the Community Donation’s application process which was out for exhibition, and therefore these payments will continue to be provided without the need for an application.

In relation to the donations for events, the timing suggested is to allow the appropriate allocation of funds for each financial year. We understand this may mean that application and consideration must be given well in advance of the event.”

Music Shoalhaven

“appreciate the open and fair process for the allocation of funds” and have expressed they “will be making an application for Financial Assistance / Donation under the Cultural category

No concern or amendments to the Policy, Guidelines or Application Form suggested within this submission.

Sussex Inlet RSL Sub Branch

“We would support continuation of recurring subsidised rates in support of our voluntary work helping local veterans and their families, and encouraging social engagement and integration in the broader local community. Recurring support in this way enables us to budget with certainty well in advance of the coming year rather than seeking ad hoc or annual grants”.

Their submission is in favour of reoccurring support without the requirement of an annual application for the subsidised rates category.

 

The revised Draft Policy, including an additional highlighted amendment is provided as Attachment 1 to this report.  The additional amendment (highlighted in yellow in the Policy) is as follows:

·    Under provisions on page 4 of the Policy “Recurring donations for ongoing projects may submit an application every three (3) years, providing that an acquittal of expenditure is provided annually” has been removed, as it is contradictory to the need for a fresh written application and acquittal being lodged with Council for each donation period. This inconsistency was identified by staff during the exhibition period.

 

The revised Draft Community Donations Guidelines & Application Form, including an additional highlighted amendment is provided as Attachment 2 to this report.  The additional amendment (highlighted in yellow) is as follows:

·    On both the guidelines and the application form, the application closing date has been brought forward from May to April to allow for assessment, reporting and determination timeline prior to the beginning of the financial year.

 

The revised Final Draft Assessment Panel Guidelines - Community Donations Policy, including an additional highlighted amendments is provided as Attachment 3 to this report and in the Draft Policy.  The additional amendments (highlighted in yellow) is as follows:

·    The panel will be chaired by the CEO or their delegate (previously stated the Mayor or delegate) as this is consistent with the Draft Policy.

·    The Director City Performance has been noted as the CEO’s delegate, in relation to recommendations for funding of $1,000 or less that may be approved by the CEO or their delegate (Director City Performance), this is also consistent with the Draft Policy.

 

As outlined in the report to the Ordinary Council Meeting, 14 March 2022, the policy is not proposed to apply to the following contributions that will remain operationally managed by the City Lifestyles Directorate:

School Citizenship Awards ($100 each per year)

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

Recognised Community Consultative Bodies ($500 each per year)

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

 

Process and timetables for the 2022/2023 Financial Year.

 

Action

When

Adoption of Policy

23 May 2022

Correspondence to all current recipients

Week ending 3 June 2022

Applications Open / Advertising commences

30 June 2022

Applications Close

12 August 2022

Review of Applications

Late August / Early September 2022

Report to Council for Determination

September 2022

Advise applicants of the outcome

By October 2022

 

For future years, the application period will commence in February each year and remain open until mid-April.  The assessment panel will meet and make recommendation to the Ordinary meeting in May 2022 so that the budget for the financial year can be determined prior to 1 July 2022.

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. 

Financial Implications

It is envisaged that the budget for donations (currently $303,269) will remain at the current levels, with the funding being split across the categories within the Policy, however, this will be subject to annual budgetary considerations by the Council.

 


 

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CL22.268   Loan Request - Murramarang Men's Shed Inc

 

HPERM Ref:       D22/113980

 

Approver:           Kevin Voegt, Director - City Performance  

Reason for Report

To consider a request from the Murramarang Men’s Shed to provide a loan of $25,000 to be used to complete Stage 2 of the construction of the Murramarang Men’s Shed.

 

Recommendation

That Council grant an interest free loan of $25,000 in accordance with the Loans (Advances) to Community Groups Policy (POL17/72) to the Murramarang Men’s Shed Inc. to complete Stage 2 of the Murramarang Men’s Shed construction as detailed in the report.

 

 

Options

1.    That Council provide the requested loan amount in accordance with the Loans (Advances) to Community Groups Policy (POL17/72)

2.    That Council does not provide the loan.

3.    That Council adopt an alternative recommendation

Background

In May 2022, Council received a request from the Murramarang Men’s Shed Inc for financial assistance to complete the construction of Stage 2 of the Murramarang Men’s Shed. In 2016, the Murramarang Men’s Shed completed Stage 1 of 2 stage project to construct a permanent shed for their organisation at 374 Murramarang Road, Bawley Point which is leased from the Council.

Stage 1 being the initial shed comprising of 3 bays (6m x 5m each) was funded by a loan of $20,000 provided by Shoalhaven City Council (see MIN16.677).  The Murramarang Men’s Shed Inc have now repaid the original loan of $20,000.

Stage 2, the shed extension consists of 2 bays (6m x 5m each) which has been quoted at $52,272 with funding being provided as follows:

·    NSW Government Community Building Partnerships Grant             $20,000

·    Murramarang Men’s Shed Savings                                                    $10,000

·    Proposed Shoalhaven City Council Loan                                           $25,000

 

Considering the excellent community work that the members of the Murramarang Men’s Shed provide to the community, such as a significant contribution to the construction of the shared cycle/pedestrian concrete pathway which will eventually link the villages of Kioloa and Bawley Point, a loan of $25,000 is recommended in accordance with Council’s policy.

The Murramarang Men’s Shed have DA consent for construction of Stage 2 and interim occupation for the first stage of the development.  The Murramarang Men’s Shed will require a Construction Certificate, however, this will be undertaken as part of the works following a successful loan from Shoalhaven City Council.

Policy Implications

The Application will be considered under the Loans (Advances) to Community Groups Policy (POL17/72) or as resolved by Council.

 

Financial Implications

The proposed loan will have nil impact on Council's unrestricted cash or Council's key financial indicators.

 

 


 

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CL22.269   Ongoing Register of Pecuniary Interest Returns - May 2022

 

HPERM Ref:       D22/186420

 

Department:       Business Assurance & Risk

Approver:           Kevin Voegt, Director - City Performance  

Reason for Report

To provide the Council with the Register of Pecuniary Interest Returns from newly designated persons lodged with the Chief Executive Officer for the period of 1 May to 31 May 2022 as required under Section 440AAB of the Local Government Act 1993 and Part 4.26 of the Model Code of Conduct.

 

Recommendation

That the report of the Chief Executive Officer regarding the Ongoing Register of Pecuniary Interest Returns lodged for the period of 1 May to 31 May 2022 be received for information.

 

Options

1.    As Recommended.

Implications: The requirements of the new Code of Conduct will be adhered to.

 

2.    The Chief Executive Officer take appropriate action in accordance with Council’s Code of Conduct in respect of any Staff who are in contravention of the Local Government Act 1993.

Implications:  Not known

 

Background

Under Section 440AAB of the Local Government Act 1993 and Part 4.26 of the Model Code of Conduct, newly designated persons are required to complete an Initial Pecuniary Interest Return within 3 months of becoming a designated person.

Section 440AAB (2) of The Local Government Act 1993 states:

Returns required to be lodged with the general manager must be tabled at a meeting of the council, being the first meeting held after the last day specified by the code for lodgement, or if the code does not specify a day, as soon as practicable after the return is lodged.

Part 4.26 of the Model Code of Conduct states:

Returns required to be lodged with the general manager under clause 4.21(c) must be tabled at the next council meeting after the return is lodged.

This report is one of a series of reports of this nature which will be provided throughout the year to align with the legislative requirements.

Those persons who have submitted a return within the period in accordance with their obligation to lodge an initial pecuniary interest return are listed below:

 

Directorate

Name

Designated Position Start Date

Returned

City Development

James Ruprai

14/02/2022

05/05/2022

City Futures

Carey McIntyre

04/04/2022

10/05/2022

Advice provided to Council by the Office of Local Government in September 2015 was that ‘hard copies’ of returns are no longer required to be tabled at the Council meeting. Therefore, the register of returns for this period is listed and tabled. Electronic versions of the documents may be viewed upon request.

 

Risk Implications

A failure of meeting the obligations with respect to the Pecuniary Interest Returns by a designated officer leaves Council at risk of non-compliance with legislative requirements, conflicts of interest and limited transparency. Staff who do not complete a return may be in breach of the Council’s Code of Conduct.

 

 


 

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CL22.270   Investment Report - May 2022

 

HPERM Ref:       D22/236614

 

Department:       Finance

Approver:           Kevin Voegt, Director - City Performance 

Attachments:     1.  Shoalhaven Monthly Report - May 2022 (under separate cover)   

Reason for Report

In accordance with Section 625 of the Local Government Act 1993 and Clause 212 of the Local Government (General) Regulation 2021, a written report is provided to Council setting out the details of all funds it has invested.

 

Recommendation

That Council:

1.    Receive the Record of Investments for the Period to 31 May 2022.

2.    Note that Council’s total Investment Portfolio (excluding the Long-Term Growth Fund) returned 0.85% per annum for the month of May 2022, exceeding the benchmark AusBond Bank Bill Index (0.41% pa) by 44 basis points (0.44%).

3.    Note the performance of the Long-Term Growth Fund as presented in the report.

 

 

Options

1.    The report on the Record of Investments for the period to 31 May 2022 be received for information.

Implications: Nil

2.    Further information regarding the Record of Investments for the period to 31 May 2022 be requested.

Implications: Nil

3.    The report of the Record of Investments for the period to 31 May 2022 to be received for information, with any changes requested for the Record of Investments to be reflected in the report for the period to 30 June 2022.

Implications: Nil

 

Background

Please refer to the attached monthly report provided by Council’s independent Investment Advisor, CPG Research and Advisory Pty Ltd.

 

Portfolio Return

The Overall portfolio returned -0.18% p.a. for the month of May 2022, entirely due to the negative movement of the growth fund.

The investment returns excluding growth fund were a stable 0.85% p.a., exceeding the benchmark AusBond Bank Bill Index (0.41% p.a.) by +44bp p.a.

Strong average earnings in the first three months of 2022 could prompt the Reserve Bank of Australia to increase interest rates higher than expected.

 

Investments (Excluding Long Term Growth Fund)

The following graph shows the performance of Council’s Investment Portfolio (excluding Long-Term Growth Fund) against the benchmark on a rolling twelve (12) month basis. As can be seen, performance has consistently exceeded the benchmark due to the mix of Council’s Investment Portfolio.

 

 

Investment Interest Earned – May 2022

The following table shows the interest earned for the month of May 2022.

Fund

Monthly Budget
$

Actual Earned
$

Difference
$

General

98,436

71,966

(26,470)

Water

64,208

43,726

(20,482)

Sewer

30,519

27,115

(3,404)

Total excluding Long-Term Growth Fund

193,163

142,807

(50,355)

 

The interest earned for the month of May, excluding changes in the fair value of the TCorp Long-Term Growth Fund was $142,807 compared to the monthly budget of $193,163.

 

Investment Interest Earned - Year to Date

The following table demonstrates how the actual amount of interest earned year to date has performed against the total budget.

Fund

Original Total
Annual Budget
$

Actual
YTD
$

%
Achieved

General

1,159,000

839,546

72.44%

Water

756,000

474,269

62.73%

Sewer

359,333

274,595

76.42%

Total excluding Long-Term Growth Fund

2,274,333

1,588,410

69.84%

 

The interest earned to the month of May excluding the change in fair value of TCorp Long-Term Growth Fund was $1,588,410 which is 69.84% of the current full year budget.

The graphs below illustrate the cumulative interest earned for the year for each fund against budget:

 

 

 

 

 

 

 

 

 

 

 

 

Long Term Growth Fund

Council’s investment in Long-Term Growth Fund returned -10.88% (annualised) for the month of May 2022, further offsetting previous significant market gains, bringing the year-to-date return to -4.10% (-10.10% below the benchmark).

It is important to note that the fund is expected to return an average of 6.0% per annum over a seven-year cycle and the positive months will outweigh the negative months over the long term.

Whilst year to date returns of the Long-Term Growth Fund is below the benchmark, the fund continues to exceed its long-term return objective (currently CPI+3.5% p.a. over 10 years = 4.19% benchmark) with the net return of 5.02% p.a. over the past 10 years.

The following graph shows the performance of Council’s Long-Term Growth Fund against the benchmark on a rolling twelve (12) months basis.

 

 

 

 

 

 

 

 

 

Long-Term Growth Fund Fair Value – May 2022

The following table shows movement in the fair value for the month of May 2022.

 

Fund

Monthly Budget
$

Actual Earned
$

Difference
$

Long-Term Growth Fund

16,986

(189,713)

(206,700)

 

The fair value of TCorp Long-Term Growth Fund decreased in May by $189,713. It is important to note that it is expected that this value will fluctuate monthly and the actual return on this fund should be assessed against our budget forecast on an annual basis.

 

Long-Term Growth Fund Fair Value - Year to Date

The following table demonstrates how the fair value movement to date has performed against the total budget.

Fund

Original Total
Annual Budget
$

Actual
YTD
$

%
Achieved

Growth fund

200,000

(768,653)

(384.33%)

 

The fair value of TCorp Long-Term Growth Fund decreased in May by $768,653 which is      -384.33% of the current full year budget.

The graph below illustrates the fair value movement for the year of the Long-Term Growth Fund against budget:

 

 

 

 

Cash and Restricted Assets

 

Record Of Investments

Cash and Investment Balances

$

$

May 2022

April 2022

Cash and Investments Held

Cash at Bank - Transactional Account

15,372,095

10,960,381

Cash on Hand

20,729

21,530

Other Cash and Investments

203,116,062

203,303,356

218,508,886

214,285,267

Fair Value Adjustment

(160,868)

(114,968)

Bank Reconciliation

582,677

(6,962)

421,809

(121,930)

Book Value of Cash and Investments

218,930,695

214,163,337

Less Cash & Investments Held in Relation to Restricted Assets

Employee Leave Entitlements

7,049,913

7,049,913

Critical Asset Compliance

580,836

659,485

Other Internal Reserves

3,972,895

3,692,949

Section 7.11 Matching Funds

311,169

311,169

Industrial Land Development Reserve

4,633,995

4,707,116

Plant Replacement

2,551,800

2,280,972

S7.11 Recoupment

629,694

2,165,664

Commitment To Capital Works

1,662,409

2,238,398

Total Internally Restricted

21,392,711

23,105,666

Loans - General Fund

16,985,681

17,874,024

Self-Insurance Liability

2,975,174

2,820,030

Grant reserve

30,874,348

29,578,151

Section 7.11

20,663,852

20,303,373

Special Rate Variation

5,563,940

5,681,885

Storm Water Levy

500,608

708,080

Trust - Mayors Relief Fund

161,495

161,481

Trust - General Trust

3,904,109

3,810,548

Waste Disposal

3,249,672

2,610,542

Sewer Fund

31,141,790

31,959,070

Sewer Plant Fund

5,119,802

4,972,568

Section 64 Water

20,518,500

20,425,036

Water Fund

26,900,178

28,127,222

Water Communication Towers

4,434,270

4,422,803

Water Plant Fund

6,836,614

6,582,404

Total Externally Restricted

179,830,033

180,037,219

Total Restricted

201,222,743

203,142,885

Unrestricted Cash Balance - General Fund

17,707,952*

11,020,452

* $3.9M Financial Assistance Grant Received in Advance will be restricted in June 2022, included in unrestricted balance for May.

Restricted Asset Movements

The table below lists the major movements in cash reserves increase/(decrease):

Total Cash

4,767,359

May was a rates instalment month as well as receiving Financial Assistance Grant. 

S7.11 Recoupment

(1,535,970)

Delivery of capital projects continues, including temporarily funding grant projects from this reserve in advance until grant claims have been lodged.

Commitment To Capital Works

(575,989)

Capital projects utilise this reserve as works continue: Basin Local Roads ($0.2M), Southern Roads Tree Management ($0.1M), and Development Services Equipment ($0.1M)

Loans - General Fund

(888,343)

Delivery of major capital projects funded by loans such as Culburra Rd ($0.1M), Materials Recovery Facility ($0.1M) and SEC Upgrade & Cladding ($0.4M).

Waste Disposal

639,130

May was  a rates instalment month.

Grant reserve

1,296,197

Received Roads to Recovery Grant Payments

Sewer Fund

(817,281)

Various capital projects

Water Fund

(1,227,044)

Various capital projects

Unrestricted cash

6,687,501

May was a rates instalment month as well as receiving Financial Assistance Grant. 

 

Liquidity Indicators

In accordance with the Liquidity Contingency Plan as endorsed by Council, the following liquidity indicators were included in the Monthly Investment Report which will continue to enhance the transparency of Council’s financial reporting.

All liquidity ratios remain above their respective benchmarks and Council remains in a sound financial position.

Please note the historic trends for some key financial indicators such as Unrestricted Current Ratio, Cash Expense Cover Ratio and Unrestricted Cash were added below as requested by Council at the last meeting.

 

 

 

 

 

Unrestricted Current Ratio

The Unrestricted Current Ratio is an indicator used to assess the adequacy of working capital and its ability to satisfy obligations in the short term for the unrestricted activities of Council. 

Unrestricted Current Ratio = (Current Assets less all external restrictions) / (Current Liabilities less specific purpose liabilities)

 

The ratio remains above the benchmark for all funds.

 

The first graph displays the May 2022 Unrestricted Current Ratio and, the second graph displays the previous rolling 12-months Unrestricted Current Ratio by fund.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrestricted Current Ratio Excluding Internal Reserves

Unrestricted Current Ratio Excluding Internal Reserves is an indicator used to assess the adequacy of working capital and its ability to satisfy obligations in the short term for the unrestricted activities of Council.

Unrestricted Current Ratio Excluding Internal Reserves = (Current Assets less all external and internal restrictions) / (Current Liabilities less specific purpose liabilities)

 

The ratio remains above the benchmark for all funds.

 

 

 

 

Cash Expense Cover Ratio Excluding External Restrictions

Cash Expense Cover Ratio Excluding External Restrictions takes the OLG calculation for the Cash Expense Cover Ratio and removes external restrictions to represent the amount of months Council can continue paying for its immediate expenses without resorting to external restrictions.

The ratio remains above the benchmark of 3 months as at the end of May for all funds.

 

 

 

 

 

Cash Expense Cover Ratio

Cash Expense Cover Ratio indicates the number of months a Council can continue paying for its immediate expenses without additional cash inflow.

Cash expense cover ratio = (Cash equivalents, TDs and FRNs x 12) / (Payments from cash flow of operating and financing activities)

 

The ratio remains above the benchmark of 3 months as at the end of May 2022 for all funds.

 

The first graph displays the May 2022 Cash Expenses Cover Ratio and, the second graph displays the previous rolling 5-months Cash Expenses Cover Ratio by fund.

 

 

 

 

 

 

 

 

Unrestricted Cash

Unrestricted Cash is calculated as a total Cash and Investments, less external and Internal restrictions.

The unrestricted cash balance remains above the benchmark as at the end of May for all funds.

The benchmark is set up at 5% of budgeted cash outflows (excluding investment purchases and expenditures funded by reserves).

 

The first graph displays the May 2022 Unrestricted Cash Ratio and, the second graph displays the previous rolling 12-months Unrestricted Cash Ratio by fund.

 

 

 

 

 

 

 

 

 

 

Statement by Responsible Accounting Officer

I hereby certify that the investments listed in the attached report have been made in accordance with Section 625 of the Local Government Act 1993, Clause 212 of the Local Government (General) Regulations 2021 and Council’s Investments Policy POL19/72.

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Olena Tulubinska                                                                                Date:  16 June 2022

 


 

 Ordinary Meeting – Monday 27 June 2022

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CL22.271   Public Exhibition Outcomes and Finalisation - 2021 LEP Instrument Housekeeping Planning Proposal (PP062)

 

HPERM Ref:       D22/194818

 

Department:       Strategic Planning

Approver:           Carey McIntyre, Director - City Futures  

Reason for Report

·    Report the outcomes of the public exhibition of Planning Proposal (PP) PP062 – 2021 Instrument Housekeeping for consideration.

·    Enable the resultant amendments to Shoalhaven Local Environmental Plan (LEP) 2014 to proceed to finalisation.

Recommendation

That Council:

1.    Adopt Planning Proposal (PP062) as exhibited and forward to the NSW Department of Planning and Environment for finalisation.

2.    Notify the adoption and commencement of the Amendment in accordance with legislative requirements.

3.    Advise key stakeholders, including relevant industry representatives, Community Consultative Bodies (CCB’s) and those who made a submission, of this decision and when the Amendment will be made effective.

4.    Consider the content of Submission No.4 relating to parking for medium density development as part of the foreshadowed Medium Density Review (MIN22.197). 

 

 

Options

1.    Adopt the recommendation.

Implications: This is the preferred option as it will enable the PP and the relevant matters it includes to be finalised and included in the LEP in a timely manner.

The PP is considered to have a minor impact as it enables permissible medium density development to benefit from clearly defined subdivision opportunities in the B4 Mixed Use zone, an outcome currently enjoyed by similar medium density development in residential zones. Subdivision opportunities for dual occupancy development in the R3 Medium Density Development zone will also be clarified in line with Council’s longstanding intent. The PP also proposes a Natural Disaster Clause that is tailored to Shoalhaven to assist in the rebuilding of dwellings destroyed during a natural disaster event, which is considered beneficial following the 2019-2020 Bushfire and recent flood (natural disaster) events, and likely future natural disaster events. 

 

2.    An alternative recommendation.

Implications: Will depend on the extent of any changes and could delay the finalisation of the PP.

 

3.    Not adopt the recommendation.

Implications: This is not the preferred option as the identified housekeeping matters will not be resolved.

 

Background

The Shoalhaven LEP 2014 is continuously updated to ensure that it aligns with strategic documents, is improved/corrected where necessary, relevant matters are resolved, and positive planning outcomes are delivered for the community. As a result, Council has an ongoing process of housekeeping amendments to improve the operation and maintain the accuracy of the LEP.

In this regard PP062 intends to make the following amendments to the LEP:

·    Require a minimum parent lot size and extend greater subdivision opportunities for medium density development in the B4 Mixed Use zone by including multi dwelling housing and residential flat buildings in LEP Clause 4.1A (Minimum lot size for dual occupancies, multi dwelling housing and like).

·    Clarify subdivision opportunities for dual occupancy development in the R3 Medium Density Residential zone, to which LEP Clause 4.1B (Dual occupancy development in zone R3) applies.

·    Introduce a ‘Natural Disaster Clause’ that is more specific (than the State model) to the needs of Shoalhaven, to enable the rebuilding of the broader range of dwellings following a natural disaster. 

 

On 7 September 2021, Council resolved (MIN21.620) to:

1.   Prepare the Instrument Housekeeping Planning Proposal based on the scope outlined in this report and submit to the NSW Department of Planning, Industry and Environment for an initial Gateway determination.

2.   If the Gateway Determination requires formal public exhibition, proceed to public exhibition in accordance with the terms of the determination and legislative requirements and if any submissions are received, these are to be considered in a further report to enable finalisation of the Planning Proposal and subsequent Amendment to the LEP.  If no submissions are received (or if exhibition is not required), proceed to finalise the Planning Proposal as exhibited to enable the subsequent Amendment to the LEP to occur, without any further reports.

3.   Advise Development Industry Representatives and Community Consultative Bodies of the exhibition arrangements and when the Plan is finalised.

 

The PP was submitted to then NSW Department of Planning, Industry and Environment (DPIE) and received a favourable Gateway determination on 30 November 2021. The determination received granted delegated authority to Council for this PP which means that Council can liaise directly with the NSW Government to prepare and finalise the resultant LEP amendment following exhibition.

 

Government Agency Feedback

Prior to the required public exhibition, the PP was referred to the NSW Rural Fire Service (RFS) in accordance with the Gateway determination.   NSW RFS raised no objections to the PP subject to a requirement that the future development of bush fire prone land complies with Planning for Bush Fire Protection.

 

Community Engagement

In accordance with the Gateway determination and Council resolution (MIN21.620) the PP was publicly exhibited for thirty (30) days, from 23 February to 25 March 2022 (inclusive) on Council’s website.

Key stakeholders including Community Consultative Bodies (CCBs) and Industry Representatives were notified in writing.

The exhibition material remains available on Council’s website and includes:

·    Planning Proposal

·    Explanatory Statement

·    Gateway Determination

·    Public Exhibition Notification

 

As a result of the exhibition, four (4) submissions were received. The following table provides a summary of the submissions received and comments from Council staff where relevant.  Copies of the actual submissions can be made available to Councillors on request prior to the meeting if necessary. 

No.

Submitter

Summary of Submission

Staff Comments

1

Allen Price & Scarratts

Supports the PP in its entirety.

Support noted. No change recommended.

2

Culburra Beach Progress Association

Requested an extension and that Council addresses the Association (or representatives from all CCBs) on the proposed changes.

Subsequent correspondence noted that a meeting would not constitute community consultation due to the size of the Progress Association.  Recommended that Council should arrange public community consultation meetings across the LGA and not rely on groups such as the CCBs to be the vehicle for community consultation on this matter of importance.

Feedback noted.  No change recommended.

Extension of time to comment granted until mid-April 2022. 

Staff confirmed availability to meet with the Association to discuss the proposal.  The Progress Association resolved not to progress such a meeting.

It is noted that this PP has been exhibited in the standard fashion and all CCBs were advised of the exhibition arrangements as a courtesy. It is not the intention that the CCBs will be the vehicle for community consultation. 

3

WaterNSW

No objection to the proposal.

Notes changes in Sydney Drinking Water SEPP to the Biodiversity and Conservation SEPP, and also the change in the former Ministerial Direction from Direction 5.2 to Direction 3.3.  Both the Chapter 8 provisions of the new SEPP and the provisions of the new Direction apply to the same area and operate in the same way as before. It may be useful for the final Planning Proposal to note these changes.

No objection noted. No change recommended.

Changes in the SEPPs (NSW Government SEPP consolidation reform) commenced on 1 March 2022, during the exhibition period of this PP.  Changes to the PP for finalisation is not required, however the changes in the SEPPs and Ministerial Directions will be acknowledged in the  Section 3.36 Planning Report that is provided to the NSW Department of Planning and Environment as part of the finalisation process of the PP.

4

Individual

Sees merit in the proposed amendments to clause 4.1A and 4.1B, however suggests that in relation to clause 4.1A, the remaining section of the lot should also have a minimum size dependent upon whether there will be one additional residence or two.

Also raises concerns about overcrowding and resulting in vehicles/boats/caravans parking on the street.  Two off street parking spaces are to be provided per dwelling.

No change recommended.

It is considered that a minimum lot size provision in the LEP for the resulting lots is not required as there are already controls in the DCP that manage density, scale, landscaping, private open space and the like, which ultimately shapes the size of the resulting lots.   This is, however, something that Council may wish to look at in the future if considered of value.

The DCP requires car parking to be provided at a rate comparable to the size of the dwelling, as follows:

·      1 space per one bedroom dwelling.

·      1.5 spaces per two bedroom dwelling.

·      2 spaces per dwelling containing three or more bedrooms.

A change to the existing parking rates in the DCP is considered beyond the scope of this proposed LEP amendment, however it would be appropriate to consider as part of the Medium Density Review that is foreshadowed as part of MIN22.197 (28 March 2022).

 

Conclusion

The submissions received do not raise any issues of substance that need to be reflected in or considered in the final PP. As such, no further changes are recommended to the PP as a result of state agency consultation or the public exhibition.

The PP can now be finalised as exhibited and the resulting LEP amendment can proceed to finalisation.

 

Policy Implications

Proposed Changes related to the B4 and R3 Zones

The proposal seeks to reinforce subdivision opportunities for permissible medium density development in the B4 and R3 zones. The subdivision of certain medium density development in these zones is considered an acceptable and logical outcome. The finalisation of the will enable Council’s longstanding intent to be facilitated through clear provisions. 

 

Natural Disaster Clause

Although most existing dwellings that are lost in a natural disaster circumstance would benefit from ‘existing use’ rights depending on their legal status, the finalisation of the PP will provide additional clarity (and comfort for landowners) that any dwelling can be rebuilt or repaired if the original lawful dwelling was destroyed or damaged in a natural disaster event. 

The rebuild or repair cannot be refused on the basis of any development standards in the LEP, however a merit assessment is still required, including consideration of contemporary bushfire legislation/guidelines, for example. 

 

Financial Implications

There are no immediate financial implications for Council. The finalisation of the LEP amendment will continue to be resourced from the Strategic Planning budget.

 


 

 Ordinary Meeting – Monday 27 June 2022

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CL22.272   Update & Next Steps - Planning Proposal PP045 - Sealark Road, Callala Bay

 

HPERM Ref:       D22/204358

 

Department:       Strategic Planning

Approver:           Carey McIntyre, Director - City Futures 

Attachments:     1.  Development Committee Report 5/3/2019 Sealark Road PP request (under separate cover)

2.  DPE cover letter 17/12/21 PP045

3.  DPE Gateway alteration (termination) PP045

4.  Updated Planning Proposal - Sealark Road, Callala Bay (PP045) (under separate cover)

5.  DPE response to updated PP045   

Reason for Report

·    To update Council on the Planning Proposal for Sealark Road, Callala Bay (PP045), which was terminated by the NSW Department of Planning and Environment (DPE) in December 2021; and

·    To seek direction from Council in relation to seeking a new Gateway from DPE.

 

Recommendation

That Council

1.    Receive the updated Planning Proposal for Sealark Road, Callala Bay (PP045) for information.

2.    Seek a new Gateway determination from the NSW Department of Planning and Environment (DPE) for the updated Planning Proposal (PP045).

3.    Seek feedback from the following Government agencies in respect of the relevant Ministerial directions under Section 9.1 of the Environmental Planning and Assessment Act 1979:

a.    The Floodplain and Estuaries Team in the Environment and Heritage Division of DPE regarding Ministerial Direction 4.1 (Flooding).

b.    The NSW Rural Fire Service regarding Ministerial Direction 4.3 (Planning for Bushfire Protection).

4.    If the outcomes of parts 2 and 3 are all favourable, publicly exhibit the PP.

5.    If any outcomes of parts 2 and 3 are not favourable, receive a further report to determine if the PP should be continued.

6.    Advise relevant stakeholders of this decision.

 

 

Options

1.    Seek a new Gateway determination from DPE.

Implications: Subject to receiving a favourable Gateway determination, this would allow the updated Planning Proposal and the supporting studies (which were absent/deficient when this matter was previously considered by Council) to be publicly exhibited. 

The PP has been updated following completion of the supporting technical studies in late 2021. Subject to receiving a favourable Gateway determination and feedback from DPE’s Floodplain and Estuaries Team and the RFS, this option would enable the community to be engaged before Council makes a final decision on whether to amend the Shoalhaven Local Environmental Plan 2014 (LEP) to rezone the land.

 

2.    Not seek a new Gateway determination

Implications: The previous Gateway determination was terminated by the DPE in December 2021.  Without a new Gateway determination, the Planning Proposal cannot proceed.

 

3.    Take another course of action.

Implications: This depends on the proposed course of action. Advice can be provided should any alternative options be raised.

 

Background

A proponent-initiated Planning Proposal (PP) request was received in January 2019 seeking to rezone Lot 5 DP 1225356 at Sealark Road, Callala Bay, to allow for residential development on the site. The PP request was lodged by PRM Architects on behalf of the landowners, Hare Bay Consortia. A location map is shown in Figure 1 and the subject land is shown in Figure 2

 

Map

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Figure 1 – Site location, PP045 – Sealark Road, Callala Bay

 

The subject land adjoins Jervis Bay National Park to the north, Wowly Creek to the east, Monarch Place and a Council foreshore reserve to the south and Sealark Road to the west. The subject land is currently undeveloped.

 

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Figure 2 – Subject land, PP045 – Sealark Road, Callala Bay

 

The land is currently zoned C3 Environmental Management as shown in Figure 3.

 

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Figure 3 – Current zoning under Shoalhaven LEP 2014

 

The PP request was reported to Council’s Development Committee on 5 March 2019. A copy of the staff report is provided at Attachment 1 (under separate cover). Council resolved to support the PP request, resolving as follows (MIN19.111):

 

That Council:

1.    Support the proponent initiated Planning Proposal request to rezone Lot 5 DP 1225356, Sealark Road, Callala Bay to a mix of residential, recreation and environmental protection zones on the basis that it is considered to be ‘minor’ in nature and significance in accordance with Council’s Planning Proposal (rezoning) Guidelines given the scale of the development that could result.

2.    Submit the Planning Proposal to the NSW Department of Planning & Environment requesting the initial Gateway determination, noting that additional and updated studies will be undertaken post Gateway to support the Planning Proposal

3.    Dependent on the outcome of the Gateway determination receive a further report on the Planning Proposal

4.    Advise the proponents and submitters of this decision.

 

A Gateway determination was issued by the NSW Department of Planning Industry and Environment (DPIE) on 2 May 2019, authorising the PP to proceed, subject to completing a range of technical studies including:

·    Biodiversity Assessment.

·    Flood Study.

·    Integrated Water Quality Management Study – to demonstrate Neutral or Beneficial Impact on water quality.

·    Aboriginal Cultural Heritage Assessment.

·    Traffic Study.

·    Geotechnical Study (including Acid Sulfate Soils).

·    Stage 1 Preliminary Contaminated Site Assessment.

·    Bushfire Hazard Risk Assessment.

 

Comments on supporting study requirements

There were some significant gaps and/or deficiencies in the technical studies included in the proponent’s submitted PP package (e.g., the flora and fauna work was completed in 2005, a flood assessment was not included). At the time however, the NSW Government’s PP process was deliberately designed to allow PPs to proceed through the Gateway step with preliminary/incomplete information.  While this approach had financial and risk management benefits (especially for proponents), it often meant extended ‘post-gateway’ timeframes to allow the required technical studies to be completed and proposals adjusted, if necessary. Consistent with this approach, the Department rarely refused extension requests. 

 

The NSW Government has moved away from this approach over the past two years, culminating in release of DPE’s new LEP Making Guideline in December 2021, which effectively requires technical studies to be completed pre-gateway.

 

The original Gateway for the Sealark Road Planning Proposal was issued on 2 May 2019 and lapsed on 2 May 2021.

 

Links to the supporting studies, date of completion and authorship are provided in Table 1 below.

 

 

 

Table 1 – Supporting studies and hyperlinks for PP045

Title

Author/date/commission by?

Biodiversity Development Assessment Report (BDAR)

Eco Logical Australia, 10/12/2020. Proponent managed

Flood Study

Footprint (NSW) 22/11/2021. Proponent managed.

Integrated Water Cycle Assessment

Footprint (NSW) 22/11/2021. Proponent managed.

Aboriginal Cultural Heritage Assessment (sensitive information redacted for public release)

AMBS Ecology & Heritage, March 2020. Council managed.

Traffic Study

PTC, 4/11/2019. Proponent managed.

Geotechnical Study (including Acid Sulfate Soils)

Terra Insight, August 2019. Proponent managed.

Stage 1 Preliminary Contaminated Site Assessment

Terra Insight, August 2019. Proponent managed.

Bushfire Hazard Risk Assessment

Eco Logical Australia, 27/7/2020. Proponent managed.

 

Apart from the Aboriginal Cultural Heritage Assessment, which was directly managed by Council and completed in March 2020, most of the required studies were commission and managed by the proponent. Due to complications associated with the land’s low elevation and gentle slope, the flood study and water cycle assessment (stormwater management) were significantly delayed – final copies of these reports were not received until November 2021. As noted earlier, the original proponent’s PP did not identify any flooding constraints on the land as no information was available. Flooding is discussed later in this report.

 

Gateway terminated on 17 December 2021

A detailed update on the findings of the supporting studies and other Gateway conditions was provided to DPE in early December 2021 in support of a Gateway extension request. However, on 17 December 2021, DPE declined the extension request and instead, altered the Gateway determination, terminating the PP.  This decision was consistent with DPE’s decision to terminate 5 ‘legacy’ PPs in December 2020 and focus on clearing the backlog of old PPs in the NSW planning system.

 

DPE’s cover letter and Gateway alteration are provided in Attachment 2 and Attachment 3 respectively. DPE’s cover letter stated:

I acknowledge that significant progress has been made on the planning proposal including completion of studies and investigations required to satisfy Gateway conditions. Unfortunately, I cannot agree to Council’s request for an extension of time due to the significant time lapsed to date and further work required to exhibit and finalise the planning proposal.

I have therefore determined as the delegate of the Minister, in accordance with section 3.34(7) of the Environmental Planning and Assessment Act 1979, to alter the Gateway determination dated 2 May 2019 for PP-2021-990 to not proceed. The Alteration of Gateway determination is enclosed.

The Department would be willing to consider a revised planning proposal on the Planning Portal when outstanding matters have been addressed. I can advise that work completed to date on the proposed rezoning of the site, including Gateway studies, will be taken into consideration by the Department should a new Gateway determination be sought.

 

Updated PP referred to DPE for comment

Consistent with Council’s resolution of 5 March 2019, staff updated the PP and submitted it to DPE for comment on 6 April 2022, so that the updated PP and DPE’s comments could be presented to Council for consideration. The updated PP is provided as Attachment 4 (under separate cover).

 

DPE’s response dated 6 May (Attachment 5) states:

I can see that significant work has been undertaken to address outstanding issues with the planning proposal including preparation of several environmental and other studies and addressing relevant Section 9.1 Ministerial Directions and State Environmental Planning Policies. I also understand Council has obtained the agreement of the NSW Environment Minister for the proposed C2 Environmental Conservation land to be dedicated as an addition to the Jervis Bay National Park which is proposed to be facilitated via a voluntary planning agreement.

I can advise that, subject to detailed assessment at gateway determination stage, the Department is prepared to consider issuing a gateway determination for the planning proposal to enable the proposal to be placed on public exhibition.

 

 

Description of the site and surrounds

The vegetation in the eastern portion of the subject land includes a Threatened Ecological Community (TEC): Bangalay Sand Forest. The heath vegetation in the north-western portion of the site was periodically slashed over a 20 year period, up until April 2019. An open drain traverses the site and discharges water from two stormwater outlets under Sealark Road into Wowly Creek (also known as Wowly Gully). Photographs of the site are on pages 9 to 12 of the updated PP provided as Attachment 4 (under separate cover).

 

The subject land is bordered by Jervis Bay National Park to the north and Wowly Creek to the east. Wowly Creek is classed as an Intermittently Closed and Open Lake / Lagoon (ICOLL) and forms part of the Jervis Bay Marine Park. The lower reach of the Creek (adjacent to the inlet) is a popular swimming spot. The Jervis Bay foreshore and the lower reach of the Creek are accessed from Monarch Place. The proponent’s Integrated Water Cycle Assessment indicates that the proposal is capable of achieving a Neutral or Beneficial Effect (NorBE) on the receiving waterway.

 

Development to the south and west of the subject site is residential and is primarily detached housing (single dwellings). Callala Bay shops are located approximately 1 km west of the site (about a 10 - 15 minute walk).

 

The land is bushfire prone and a Bushfire Hazard Assessment has been undertaken to assess the level of bushfire risk that would apply to future development and to propose risk reduction and management methods.

 

The land is low lying, with a maximum elevation of 6.0 m AHD at the north-western corner and slopes gently in a south-easterly direction toward Wowly Creek. The eastern boundary of the land has elevation of approx. 2.0 m AHD. The land is partly flood-affected. A site-specific Flood Study has been prepared to understand flood risks and constraints for development.  The results of the flood modelling are summarised in Figure 4.

 

Diagram

Description automatically generated with low confidenceFigure 4 – Flooding constraints, pre (top) and post-development (bottom)

 

The proponent’s proposed post development scenario involves excavating 860m3 of material from the drainage channels that dissect the proposed residential area, and applying a total fill volume of 10,540m3 over the proposed residential area to an average depth of 700-800mm. It is understood that the proposed excavation and filling is necessary from a water quality and stormwater management perspective, i.e., to provide sufficient fall to the proposed stormwater treatment system. Further detail is provided on page 29 of the updated PP provided as Attachment 4 (under separate cover). 

 

 

Intended outcomes of the Planning Proposal

Approx. 1.7 ha of land adjacent to Sealark Road is proposed to be rezoned from C3 Environmental Management to R1 General Residential. The balance of the subject land is proposed to be rezoned to C2 Environmental Conservation and the minimum lot size is proposed to be reduced to 4ha to ensure that it can be subdivided from the residential land and added to the Jervis Bay National Park (which is to be secured via a Voluntary Planning Agreement). The current and proposed land use zoning is shown in Figure 5.

 

Map

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Figure 5 – Current (left) and proposed (right) land use zoning under Shoalhaven LEP 2014. Note: the subject land boundary includes a small tidal tributary of Wowly Creek (which is not part of Lot 5) to avoid creating a zone anomaly, i.e., to ensure the tributary is also rezoned from C3 to C2.

 

The proposed minimum lot size for the R1 land is intended to be reduced from 40 ha to 500m2. The maximum allowable height of buildings for the residential area is proposed to be reduced from 11m (under clause 4.3(2A) of Shoalhaven LEP 2014) to 8.5m.

 

Conclusion

This report has been prepared consistent with Council’s resolution on 5 March 2019 to support a proponent-initiated Planning Proposal over Lot 5 DP 1225356. Large information gaps in original PP request have been addressed and the proposal has been updated accordingly.

Despite terminating the PP due to lengthy delays experienced by the proponent in completing the required studies, DPE has encouraged Council to seek a new Gateway determination for the updated PP. If Council resolves to seek a new Gateway determination, the proposal will come back to Council for final consideration.

 

Community Engagement

Should a new Gateway determination be issued by DPE that allows the PP to proceed to exhibition, subject to satisfying any conditions, community feedback would be invited on the updated PP and supporting information.  The PP would be exhibited for a minimum of 28 days.

 

Financial Implications

Council has fees and charges in place for progressing proponent-initiated Planning Proposals. These seek to recoup costs incurred by Council in progressing the matter, including the costs associated with staff time.  Any unpaid costs incurred by Council (as prescribed in Council’s adopted Fees and Charges) would need to be invoiced to, and paid by, the Proponent before the PP proceeds to exhibition.

 


 

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 Ordinary Meeting – Monday 27 June 2022

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CL22.273   Update on Proposed Strategic Property Purchase in Bomaderry

 

HPERM Ref:       D22/231619

 

Department:       Strategic Property

Approver:           Carey McIntyre, Director - City Futures  

Reason for Report

The purpose of this report is to provide Council with the outcome of the auction for the potential purchase of the property formally owned by the Bomaderry RSL at 5-11 Bunberra Street, Bomaderry.

 

Recommendation

That Council receive the report providing an update on the potential purchase of 5-11 Bunberra Street, Bomaderry.

 

 

Options

1.    Receive the report

Implications: Council will be informed and updated on the results of the sale process for the property.

 

Background

Council considered a Confidential Report (D22/217686) at an Extraordinary Meeting on 26 May 2022 to negotiate the purchase of 5-11 Bunberra Street, Bomaderry (RSL site) prior to public auction. Council resolved at this meeting (MIN22.361C) to proceed with the strategic property purchase in Bomaderry as Option 1 in the report.

Council submitted an offer to the RSL, however, was advised the Trustees determined they would proceed to auction. The delegations provided to the CEO at the time did not provide for participation in an auction or indeed any negotiations beyond the auction.

Therefore, a further Confidential Report (D22/224793) was submitted to Council at another Extraordinary Meeting on 31 May 2022 to confirm if Council still wished to pursue the purchase and if so, obtain approval for the CEO or nominee to bid at auction on Council’s behalf. Council resolved a bidding cap amount.

The auction was held on 1 June 2022 at 5:30pm in the Bomaderry RSL building. There were three bidders (including Council). The other two were by agencies via phone. Council was unsuccessful in bidding in that its resolved bidding cap was reached and exceeded, with the final bid of $4,000,000 (ex GST) being made by an unknown bidder via phone.

It was subsequently publicly reported that the owner of a chain of Sydney-based childcare centres purchased the property.

 

 


 

 Ordinary Meeting – Monday 27 June 2022

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CL22.274   Lease Renewal Part Lot J DP 39259 Egans Lane, Nowra to Egans Lane Pty Ltd

 

HPERM Ref:       D22/163544

 

Department:       Technical Services

Approver:           Paul Keech, Director - City Services  

Reason for Report

To provide Council with an opportunity to consider granting a three (3) year retail lease with an option for a further two (2) years to Egans Lane Pty Ltd for the lease of that part of Lot J in DP 39259 comprising the building, improvements and curtilage, and located at Egans Lane, Nowra.    

 

Recommendation

That Council:

1.    Enters a three (3) year lease plus a two (2) year option to Egans Lane Pty Ltd for the lease of that part of Lot J in DP 39259 comprising the building, improvements, and curtilage, and located at Egans Lane, Nowra for the purpose of a covered dining area for use as part of a café and restaurant operated by the Lessee on adjoining land at a commencement rent of $6,300 (plus GST) per annum adjusted annually to CPI.      

2.    Approves the Common Seal of the Council of the City of Shoalhaven be affixed to any documents required to be sealed otherwise the Chief Executive Officer be authorised to sign any documentation necessary to give effect to this resolution.

 

 

Options

1.    Adopt the recommendation

Implications: Council enters a lease with Egans Lane Pty Ltd for a three (3) year lease with a two (2) year option and receive $6,300 per annum (plus GST) rental income for the property with annual CPI increases.

 

2.    Not adopt the recommendation

Implications: The building on part Lot J DP 39259 is physically connected to the building on the adjacent lot and owned by Egans Lane Pty Ltd.  Access to the leased area is through the adjoining property.   The viability of leasing this parcel to another party is very low.      

 

Background

In 1997 the then owner of 9 Egans Lane, being the property adjacent to Lot J DP 39259, received Building Approval from Council to construct a covered deck/outdoor dining area over Council owned land (Lot J DP 39259).  A condition of which was to enter into a lease with Council for the affected land.  Council has leased part Lot J DP 39259 since that time to owners of the adjoining property.

Aerial view of a building

Description automatically generated with low confidence

Figure 1: Site location

Calendar

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Figure 2: Aerial view of Lot J with built infrastructure connected to 9 Egans Lane (Lot 1 DP 546949)

 

Egans Lane Pty Ltd purchased 9 Egans Lane, Nowra on 20th August 2021.  A new lease is required to legally formalise access to, and clarify responsibilities and liabilities associated with the built infrastructure on Lot J DP 39259.    

A key condition of the proposed lease is that ‘If at any time during the term of this lease or any renewal or holding over, the Landlord proposes to reconstruct or redevelop the property or the building of which the property forms part and the demolition of the property is required to effect the said reconstruction or redevelopment, the Landlord may terminate this lease by giving not less than twelve months written notice to the Tenant.’.  This ensures that Council can develop/improve the site while providing the lessee with ample notice should circumstances change in the future.  

An alternative to entering a lease may be that Council instructs the removal of infrastructure on Lot J DP 39259.  Legal advice would be required on this matter to determine if Council would be liable for compensation to the new owner and/or liable for costs associated with removal. 

 

A picture containing text, outdoor, building, house

Description automatically generated    

 

Lease schedule

Lessee

Egans Lane Pty Ltd

PO Box 1120, Nowra, NSW, 2541

ACN:  650 203 848

Lessor

Shoalhaven City Council
Administration Building 
42 Bridge Road, Nowra, NSW, 2541
Tel: 02 4429 3111
Email:  Council@shoalhaven.nsw.gov.au

 

Premises

That part of Lot J in DP39259 comprising the building, improvements and curtilage and located at Egans Lane, Nowra, NSW, 2541

 

Site area

Approx 60m2

 

Term

Three (3) years with an option for a further two (2) years

 

Rent

$6,300 plus GST per annum, payable six monthly in advance in equal instalments

Rent Review

Annually to CPI

 

Percentage of Outgoings

0%

Permitted Use

As a covered dining area for use as part of a café and restaurant operated by the Lessee on adjoining land.

 

Public Risk Insurance

Twenty million dollars ($20,000,000.00)

Security Deposit

The amount equivalent to three (3) months’ rent plus GST

Guarantor

Not applicable

Amount of Public Liability Insurance

A minimum of $20 million

 

Community Engagement

Community engagement is not required as the site is classified as Operational Land.

Internal comments were sought.   The Manager of Strategic Planning relayed the need to be able to resume control of the site should the area be redeveloped.  The condition described above satisfies this need. 

 

Policy Implications

Leasing the site helps achieve Delivery Program Operational Plan 2021/22 Goal 3.1.06 – Make our CBD’s and town centres active places.

 

Financial Implications

Should Council resolve to enter into a new lease, Council will receive an annual rental income commencing at $6,300 (excluding GST).  This will be indexed annually with CPI.   Council is not responsible for the upkeep of the built infrastructure so there will be no costs incurred regarding maintenance etc. 

 

Risk Implications

Entering a lease

Risks are minimal should Council resolve to enter into a lease.  Conditions within the lease mitigate risk.

Not entering a lease

As Council does not have a lease with Egans Lane Pty Ltd it is unclear as to which party is currently responsible for public liability and building maintenance relating to the use of part Lot J DP 39259.  The previous lessee was in a holding over period at the time of sale of the adjoining property.   As such, the lease, along with any lessee responsibilities did not transfer on sale. 

Not entering into a lease and demolishing the infrastructure 

Council is not privy to the negotiations regarding the sale of 9 Egans Lane Nowra.  However, it could be assumed that the new owner has an expectation that Council will enter a new lease.  As the buildings on 9 Egans Lane and Council owned Lot J DP 39259 are physically joined it could be expected that apart from the costs associated with demolition, there may be some costs incurred rehabilitating the exterior.   It is not clear to what extent Council would be liable for the costs of demolition and rehabilitation, nor if Council is liable for compensation relating to the decreased building footprint.   It is suggested that Council seek legal advice if considering this option. 

 


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Ordinary Meeting – 27 June 2022

Page 1

 

 

CL22.275   Proposed Lease to Currarong Arts and Crafts Society Incorporated - Part 23-25 Walton Way, Currarong

 

HPERM Ref:       D22/144890

 

Department:       Building Services

Approver:           Paul Keech, Director - City Services  

Reason for Report

To allow Council to consider options for the proposed lease renewal for a period of ten years to Currarong Arts and Crafts Society Incorporated (Currarong Arts) at part 23-25 Walton Way, Currarong from 1 July 2022 at a commencing rental of $510 per annum.   

 

Recommendation

That Council;

1.    Note the property strategy for this site (part Lot 22, DP16854 part 23-25 Walton Way, Currarong) is to retain the existing tenant, finalise a lease and improve the condition of the building by allocating additional funds to the Operational and Capital budgets during the ten-year lease term.

2.    Approve the Lease of part Lot 22, DP16854 part 23-25 Walton Way, Currarong to Currarong Arts and Crafts Society Incorporated for a period of ten years commencing 1 July 2022 at a rental of $510 plus GST per annum with annual CPI increases and authorise the Chief Executive Officer to execute relevant documentation

3.    Note the estimated cost to Council of this arrangement over the next 10 years is $175,827, (today’s dollars), the key components being

a.    Rental income of $5,100 over the lease term. Note $510 per annum

b.    An operational budget of $137,400 over the lease term for non-recoverable costs, reactive and scheduled maintenance repairs will be required in the 22/23 FY and beyond. This equates to an average of $13,740 per annum.

c.    A capital budget of $43,527 for building works comprising of external painting, upgrades to the flooring, kitchen and bathroom required in the 23/24 FY and beyond. This equates to an annual average expense of $4,353 per annum

 

 

Options

1.   As Recommended

Council approves the Recommendation for a Lease renewal for a term of ten years which provides for a minimum rental to be applied and additional maintenance responsibilities to Council.

Implications: Currarong Arts and Crafts Society Inc. will have security of tenure and be able to request for grants to undertake upgrades to the tenancy/building which will assist with reducing Council’s financial exposure.  The total cost to Council represents $175,827 (Table 1) over the lease term.

 

 

2.  100% Cost Recovered Rental Option (Note could be any variant up to 100% cost recovery)

Approve the Lease of part Lot 22, DP16854 part 23-25 Walton Way, Currarong to Currarong Arts and Crafts Society Incorporated for a period of five years commencing 1 July 2022 at a rental of $17,582 plus GST per annum plus annual 3% increases, and authorise the Chief Executive Officer to execute relevant documentation,

Implications: Currarong Arts and Crafts Society Inc have provided a financial statement which reflects that whilst they can afford the minimum rental, they have very limited funds.  They also do not obtain other funding from the government for the operation of the community facility.   Applying a cost recovery rental is not consistent with POL19/40 which advises that a statutory minimum rental is to be charged for this tenant as a result of the above.

 

3.  Opportunities for a new tenant 

Advertising for alternate leasing of the property to the community occurs.

That Council seek tenants (via a public advertising process) to lease part Lot 22, DP16854 part 23-25 Walton Way, Currarong for a period of five years commencing 1 July 2022 at a rental of $1,700 plus GST per annum, and report back to Council on a preferred tenant. The rental of $1,700 per annum was determined by valuers Walsh and Monaghan 1 July 2014 and have recently advised that no increase is relevant.

Implications: There has been no objections to the community advertising which has occurred for the proposed lease renewal to Currarong Arts and therefore this is not recommended.  The building has been occupied and improvements have been made by Currarong Arts and Crafts since occupation in 1983.  A significant number of local objections would therefore be anticipated should this advertising occur.

 

Background

Currarong Arts occupy the ex-Rural Fire Station site owned by Council which is classified as Community Land. 

Currarong Arts have been in occupation of the site since 1983 and are currently on holdover from their lease which commenced 1 July 1995 and expired 30 April 1999.  The new committee now has a focus to increase membership and community engagement and would like to occupy the premises on a long-term basis and ensure security of tenure by entering into a ten-year lease renewal.

Currarong Arts was formed in 1982 with the support of the local community, local members of parliament and Council and was incorporated in 1990.  The main purpose of the group is to provide a creative outlet for the residents of Currarong and surrounding areas and to encourage artistic pursuits but to also create a place for social interaction, support, teaching of arts and for the promotion of the area to visitors. 

They have a retail shop at the front of the premises with a working area, kitchen, storage and amenities to the rear. The shop is a focal point for tourism in the village opening on the weekends and during the week for members. Funds raised by Currarong Arts via the sale of art products from the premises, are donated to local and wider charities and to pay for costs for the operation of the facility. 

 

Property

The site comprises of 1,795 square metres and is an irregular shaped allotment falling slightly to the rear which fronts Currarong Creek. The land to the south is an intermittent watercourse/drainage line and is heavily vegetated. Public access from Walton Way to the creek is provided and the site contains a large amount of vegetation.

It is located within a residential area and zoned RE1 Public Recreation which limits how the site can be used however permits community facilities. This zoning also restricts the value of the premises and rental which can be achieved.

Currarong Arts have been in occupation since 1983 after relocation by Rural Fire occurred. The original building was rebuilt with local volunteer labour and donated materials and a toilet and storeroom was added with a loan from Council which was fully repaid.

The building comprises of an original ex rural fire shed built in approximately 1970 constructed of external corrugated galvanised iron, concrete slab and corrugated iron roof with no onsite parking available.  The lettable area is approximately 85 square metres and includes an open plan retail area, small original kitchen, storeroom and bathroom all of which require updating.

Capital works over the term of the lease include upgrades to the flooring, kitchen and amenities and external painting.  Operational works include repairs to the external façade, windows and doors all of which continue to be the responsibility of Council.   

 

Aerial of the Site

 

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Property Strategy

The property strategy for this site is to retain the existing tenant, finalise a lease, and to improve the condition of the building by allocating additional funds to the Operational and Capital budgets during the ten year lease term. 

 

This is the only Council owned community run facility within Currarong, the site is classified as community land and therefore continued occupation by the community is required.  The best use for the building is the existing tenant as the building size and condition is restrictive and there are limited suitable community groups in this location.  

 

Community and Internal Engagement

In accordance with the Local Government Act 1993 – Section 47, the proposed Licence has been advertised for a period of 28 days and no objections have been received.

 

Council staff are investigating the parking on the street to ensure compliance with current standards and mitigate risk to protect Council as a roads authority.  The site offers no parking and consultation will occur with Currarong Arts and surrounding occupants regarding any proposed safety improvements.    

 

Policy Implications

POL19/40 Occupation of Council owned or Managed Land.

 

Clause 5.8 Cost Recovery provides that Council “is to ensure that agreements do not impose an unreasonable burden on general revenue.   Council is to obtain a reasonable dividend and at a minimum, cost neutrality from the use of its property, i.e. the tenancy is to be at no cost to Council. “ 

Implication - This is not feasible for the majority of community facilities where no federal government funding is provided.  The statutory minimum rental plus the non-recoverable costs incurred by Council result in a negative impact.  The Recommendation provides for additional funds of $175,827 to maintain the facility to a suitable standard. This aims to ensure that the condition of Council properties are at an acceptable standard and the property is properly maintained and building and tenant issues minimised on a long term basis. 

Clause 5.9 and 5.11 Defined Lease Term and Asset Plan notes that “no lease is for a term greater than five years unless under exceptional circumstances..” and that “unless an asset management plan it is prepared indicating cost of structural or minor repairs likely during the term..”   

Implication - The proposed lease term is for a period of ten years given that the tenant has been in occupation for the past forty years and proposes to remain on a long-term basis.  The site is classified as community use and is not proposed to be divested and does not provide an opportunity for many uses in its current configuration.  The tenant is proposing to undertake an upgrade to their fit out on receipt of grant funds.  Operational and capital works have been identified in the Long-Term Financial Plan (Annexure 1) which are required over the term of the lease. 

 

Clause 5.17 Rental and Other Fees and Charges provides that “Only in exceptional circumstances where the community group can demonstrate that it essentially functions as a self-help group (with no funding from State or Federal Government) with the local community, will Council consider a rent equivalent to the minimum statutory rent.” 

Implication – The tenant has demonstrated that they do not receive any state or federal funding and therefore, the Recommendation is consistent with this Policy.

Clause 6 Review provides for “It will be reviewed within one year of the election of every new Council, or earlier if required. “

Implication - We are currently reviewing the Policy and will be providing a number of recommendations for consideration by Council. 

 

Financial Implications

Council will continue to receive a rental equivalent to statutory minimum, for a term of ten years with annual cpi increases.  The Lessee will be required to keep the premises in a clean and tidy condition, including their tenancy fit out and maintain that part of the land surrounding the building.  

The lease which expired in 1999 provides for Currarong Arts to be responsible for the building and tenancy maintenance, however it was evident after a site inspection, tenancy discussions, and a review of financial information, that this community group is not able to fund larger repairs and some maintenance to the site. 

Council will therefore be managing the maintenance of the air conditioning, cleaning of gutters and fire compliance costs as a result of the Lessee’s position.

The Long Term Financial Plan for the premises and the financial implications total $175,827 as a result of the proposed lease include the following (Refer to Table 1 – Long Term Financial Plan Summary). 

a.    Rental income of $5,100 over the lease term. Note $510 per annum

b.    An operational budget of $137,400 over the lease term for non-recoverable costs, reactive and scheduled maintenance repairs will be required in the 22/23 FY and beyond. This equates to an average of $13,740 per annum.

c.    A capital budget of $43,527 for building works comprising of external painting, upgrades to the flooring, kitchen and bathroom required in the 23/24 FY and beyond. This equates to an annual average expense of $4,353 per annum

 

Note that Council will require the amount of $175,827 over the lease term to create a cost neutral position as required in Clause 5.8 Cost Recovery POL/40 Occupation of Council owned or Managed Land.

 

Table 1 - Long Term Financial Plan Summary

Refer to Annexure 1 – Long Term Financial Plan for additional information.

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Risk Implications

No risks identified. Currarong Arts have a strong presence within the local community and propose to continue to remain within the premises on a long-term basis.

The Lessee’s year-end financial statements have been reviewed to determine their financial capacity to pay rental and maintain the premises which largely occurs with the help of volunteers.  Further information can be provided, noting that the Recommendation to Council takes this information into consideration, as their financial details have been excluded for privacy reasons. 

In the event that no additional Opex or capital funding is provided, the building condition will condition to decline. 

 

 

 


ANNEXURE 1 - LONG TERM FINANCIAL PLAN

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 Ordinary Meeting – Monday 27 June 2022

Page 1

 

ANNEXURE 2

Proposed Lease Terms

 

Item 1

 

Premises

Part 23-25 Walton Way, Currarong comprising the building, improvements and curtilage

Part Lot 22, DP16854

Item 2

 

Lessee

 

Currarong Arts and Crafts Incorporated

23-25 Walton Way, Currarong

Contact Diana Perkins, President

Email:  dianaperkins@bigpond.com

Tel: 0409 983844  

Item 3

 

Lessor

Shoalhaven City Council

Administration Building

42 Bridge Road, Nowra, NSW, 2541
Property Officer, Building Services

Tel: 02 4429 3111

Email Council@shoalhaven.nsw.gov.au

Item 4

 

Permitted Use

Community meeting place, arts and crafts and tourism activities

Item 5

 

Term

Ten (10) Years

Item 6

 

Commencement Date

1 July 2022

Item 7

 

Termination Date

30 June 2032  

Item 8

 

Option

Not applicable

Item 9

 

Rent

$510 plus GST per annum, payable annually in advance

Item 10

 

Rent Reviews

Annual cpi increases

Item 11

 

Outgoings

100% of the following outgoings which is related to your occupancy including;

·      Garbage disposal

·      Power, gas and internet

·      Water usage and sewerage costs

Item 12

Lessors Improvements

The Lessor owns all buildings, structures, and equipment on the Premises comprising of the ex RFS Station. 

Item 13

Lessees Improvements

The Lessee owns the fit out within the building installed by the Lessee.    

Item 14

Lessors Maintenance

The Lessor is responsible for structural works and the integrity of the building and site including roof repairs, replacement of fencing, and all costs associated with existing vegetation and clearing of the land. 

 

The Lessor will also undertake cleaning of the gutters, maintenance of any air conditioning units owned by Council and all fire services equipment.

Item 15

Lessees Maintenance

The Lessee is responsible for repairs, maintenance of the Premises including the Lessee’s Improvements, general lawn and garden maintenance of the cleared land only, and ensuring that the Premises are presented and accessible in a condition suitable to the use.

Item 16

Redecoration

Redecoration will include internal repainting of the premises where relevant, three months prior to expiry/vacation and ensuring that all maintenance obligations are undertaken.

Item 17

 

Makegood

Upon Licence expiry or vacation, the Lessee will vacate the Premises and hand back the Premises to the Lessor in a suitable condition taking into consideration redecoration and maintenance responsibilities. 

Item 18

 

Public Risk Insurance

Twenty million dollars ($20,000,000)

Lessor to be noted as interested party on the policy

Item 19

Bank Guarantee/Guarantor

Not applicable

Item 20

 

Documentation and preparation costs

 

External lease preparation costs to be shared by the Lessee/Lessor

Item 21

Interest

Not applicable

Item 22

Percentage of Rental Subsidy

Not applicable

Item 23

Land Classification

Community Land

 

 

 


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Ordinary Meeting – 27 June 2022

Page 1

 

 

CL22.276   Proposed Lease Renewals - Buildings 1, 2 and 3, 78 St. Vincent St. Ulladulla

 

HPERM Ref:       D22/140015

 

Department:       Building Services

Approver:           Paul Keech, Director - City Services  

Reason for Report

To allow Council to consider options for the proposed renewals with all existing community tenants occupying buildings 1, 2 and 3 at 78 St Vincent Street Ulladulla.  The four tenants currently have five leases with differing commencing/expiry dates and all leases have expired and are now on holdover.  All community tenants have existing market rental subsidies in place, the site is owned by Council and classified as operational land.

Recommendation

That Council;

1.   Note the property strategy for this site (Lot 1, DP1005058 part Buildings 1, 2 and 3 at 78 St Vincent Street Ulladulla) is to retain the existing tenants, finalise four lease renewals and align the lease expiry dates to 30 June 2026 and improve the condition of the buildings by allocating additional funds to the Operational and Capital budgets during the five-year lease term.

2.   Approve the lease renewals at Lot 1, DP1005058 part Buildings 1, 2 and 3 at 78 St Vincent Street Ulladulla Buildings for a period of approximately five years expiring 30 June 2026 and authorise the Chief Executive Officer to execute relevant documentation for the following community leases.  All leases provide for fixed increases and subsidised rentals for the following tenants;

a.    Ulladulla and Districts Community Resources Centre

Building 1

Subsidised Rental $6,131.18 per annum

Commencement date 1 July 2021

b.    Mission Australia

Building 2

Subsidised Rental $2,307.53 per annum

Commencement date 1 July 2021

c.    Southern Shoalhaven Zone Meals on Wheels

Suites 1 and 3, Building 3 – occupation 43%

Subsidised Rental $1,810.00 per annum

Commencement date 1 July 2021

d.    Australian Unity Homecare Service Pty Limited

Suite 2, Building 3 – occupation 57%

Subsidised Rental $10,706.50 per annum

Commencement date 1 May 2022

3.   Note the estimated total cost to Council for this arrangement over a five years is $124,997 (today’s dollars), the key components being;  

a.   A total rental subsidy of $105,856 per annum or $519,806 over the lease terms expiring 30 June 2026.

b.   A total operational budget of $39,334 per annum or $190,443 over the lease term for non-recoverable costs and reactive/scheduled maintenance and repairs will be required in the 2022/23 FY and beyond.

c.   A capital budget of $30,413 for building works comprising of a kitchen replacement and external painting which is required in the 23/24 FY and beyond.  This equates to an annual average expense of $6,083 per annum.

 

 

1.    As Recommended

Council approves the Recommendation for the lease renewals expiring 30 June 2026 for the recommended terms which include subsidised rentals. 

Implications: Council will secure existing tenants and align lease expiry dates which will provide further opportunities for a consistent review across the site which is strategic, timely and may provide cost reduction opportunities.   The total cost to Council represents $117,480 over the lease term.

 

2.    Determined Rental Option (Providing a cost neutral position or profit to Council)

1.   Council approve the lease renewals at Lot 1, DP1005058 part Buildings 1, 2 and 3 at 78 St Vincent Street Ulladulla for a period of approximately five years expiring 30 June 2026 and authorise the Chief Executive Officer to execute relevant documentation for the following community leases.  All leases provide for fixed increases and determined rentals with no rental subsidies;

·    Ulladulla and Districts Community Resources Centre

Building 1

Determined Rental $44,950.00 per annum

Commencement date 1 July 2021

 

·    Mission Australia

Building 2

Determined Rental $42,340.00 per annum

Commencement date 1 July 2021

 

·    Southern Shoalhaven Zone Meals on Wheels

Suites 1 and 3, Building 3

Determined Rental $39,522.00 per annum

Commencement date 1 July 2021

 

·    Australian Unity Homecare Service Pty Limited

Suite 2, Building 3

Determined Rental $21,413.00 per annum

Commencement date 1 May 2022

   

Implications: Applying a full determined rental is not consistent with POL19/40 which advises that a subsidised rental is to be applied for these community tenants.  Whilst the community groups are able to fund the recommended rentals, they will not be able to afford the full determined rentals and the cost of operating the facility.

 

3.    Opportunities for new tenants

Investigate opportunity for new lessee’s (via a public advertising process) for the leasing of Buildings 1, 2 and 3 at 78 St Vincent Street Ulladulla and report back to Council on the responses and recommendation which would provide for a lease term of five years. 

Implications: This is not recommended.  The existing community groups have been in operation for a number of years and it is anticipated that significant opposition to this Option will be received by the four tenants and the community. 

 

Property Details

The site comprises of 3,292 square metres and is generally rectangular in shape with a gentle fall to the north. It is within the commercial area of Ulladulla and zoned B3 Commercial Core. It is located on the fringe of the commercial area, and as a result surrounded by diverse development including surrounding professional suites, commercial developments and a High School opposite. 

 

It comprises of three separate buildings constructed in approximately 2005, with a carpark located to the south which contains reserved spaces for these buildings together with community parking. The purpose-built office buildings are single level, constructed of brick veneer, tile and colour bond roof and are fairly consistent in appearance with rear courtyards.

 

Two buildings are solely occupied whilst the third is divided into three suites occupied by two tenants (not located adjacently). This report provides further details regarding each tenancy however a summary is provided below and includes the Valuation Rent from Walsh and Monaghan 24 August 2021 which has been used to determine the proposed subsidised rentals. 

 


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Ordinary Meeting – 27 June 2022

Page 1

 

Table 1 – Lease Summary

 

 

Note - A separate Memorandum of Understanding for the occupation of car parking on the site is currently in place and will need to be reviewed as part of these renewals.

 

 

 

 


 

 Ordinary Meeting – Monday 27 June 2022

Page 1

 

 

SITE LOCATION

 

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Property Strategy

The property strategy for this site is to retain the existing tenants and align the leases which have expired and are on holdover to an expiry date of 30 June 2026. This will ensure that a consistent property strategy for the site occurs with all tenants, and provides efficiencies of scale for future lease renewals costs.

 

The site is owned by Council and classified as operational land and due to the size and location of the land, maybe considered as having future development potential.

 

Community and Internal Engagement

Community engagement is not required as the site is classified as Operational Land. 

 

The Principal Transport Engineer, City Futures has advised that they will be investigating some improvements for disabled access between our site and the adjacent rear site owned by Sheffield Crest. The works proposed would include a concrete ramp between the carpark and the adjacent pathway which has been approved by them.

 

Policy Implications

POL19/40 Occupation of Council owned or Managed Land

Clause 5.8 Cost Recovery provides that “Council is to ensure that agreements do not impose an unreasonable burden on general revenue. Council is to obtain a reasonable dividend and at a minimum, cost neutrality from the use of its property, i.e. the tenancy is to be at no cost to Council.”  

Implication - This is not feasible for the majority of community facilities where they have limited funds for building maintenance. The Recommendation provides for additional funds to maintain the facility to a suitable standard to provide for cost neutrality in accordance with this policy. This initiative will ensure that the condition of Council properties are at an acceptable standard and the property is properly maintained and building and tenant issues minimised on a long term basis. 

Clause 5.9 and 5.11 Defined Lease Term and Asset Plan notes that “no lease is for a term greater than five years unless under exceptional circumstances..”

Implication - The proposed lease term is for a period of five years or less, which is consistent with this policy. 

Clause 5.17 Rental and Other Fees and Charges provides that “All rentals charged in the first instance are to be determined in accordance with market values and Community Groups – rental figure is determined through a rental assessment framework (RAF).” 

Implication – These community tenants have been paying a subsidised market rental since their occupation and is recommended in this report for the lease renewals. The Recommendation is therefore consistent with this Policy.

Clause 6 Review provides for “It will be reviewed within one year of the election of every new Council, or earlier if required.” 

Implication - We are currently reviewing the Policy and will be providing a number of recommendations for consideration by Council. 

 

Financial Implications

Financial details for each lessee are provided separately in Annexure A – Long Term Financial Plans, however a combined table showing the implications for all lease renewals is provided below.

 

Council will continue to receive subsidised market rentals, for a term of approximately five years for each tenant with fixed annual increases of 3.5%. Lease terms and commencement dates may vary slightly due to the dates being inconsistent. The tenants will be required to keep the premises in a clean and tidy condition, including their tenancy fit out and maintain that part of the land surrounding the building.  

 

The leases for each tenant provides for them to be responsible for the building and tenancy maintenance, however it was evident after site inspections that some maintenance is not occurring. This largely consists of the cleaning out of gutters which can cause issues with the buildings over time. It is therefore proposed that Council take on this responsibility to minimise major repairs or capital works in the future. Note that air conditioning units have been installed by the tenants and are therefore not Councils responsibility.

 

The estimated total cost to Council for this arrangement over a five years is $124,997 (today’s dollars), the key components summarised below (Table 2 – Summary Long Term Financial Plan) and detailed further in the Long Term Financial Plan (Annexure A – Long Term Financial Plans);  

·    A total rental subsidy of $105,856 per annum or $519,806 over the lease terms expiring 30 June 2026.

·    A total operational budget of $39,334 per annum or $190,443 over the lease term for non-recoverable costs and reactive/scheduled maintenance and repairs will be required in the 2022/23 FY and beyond.

·    A capital budget of $30,413 for building works comprising of a kitchen replacement and external painting which is required in the 23/24 FY and beyond.  This equates to an annual average expense of $6,083 per annum.

 

 

 

 

Table 2 – Summary Long Term Financial Plan

 

LESSEE DETAILS

 

ULLADULLA AND DISTRICTS COMMUNITY RESOURCES CENTRE

Building 1, 78 St Vincent Street Ulladulla

 

Ulladulla and Districts Community Resources Centre (UDCRC) are currently on holdover from their lease which expired 31 December 2019. They have been in occupation of the site since May 2006 after being located in other buildings within the area from 1983. 

 

UDCRC aims and philosophies include: To research and identify the needs and issues concerning different groups in the area. To develop networks, services and activities, which address the needs of disadvantaged people in the area, to bring local residents together around issues of concern, and endeavour to change to meet the needs of our community.

 

Financial Implications

Council will continue to receive determined rental with the previously agreed rental subsidy applied from their lease commencement date 1 July 2021 to their expiry date 30 June 2026.  The Lessee will be required to keep the premises in a clean and tidy condition and maintain that part of the land surrounding the building.  

 

An inspection occurred as part of the transaction negotiations which identified that the premises are generally in good condition.  The kitchen has been noted as requiring replacement during the lease term together with some minor external painting which is the responsibility of Council. The Lessee has recently painted internally and has added a number of air conditioning units which they are required to maintain. They are also reviewing grant opportunities to enhance the external area to the rear and side of the building. 

 

The estimated cost to Council is $60,147 with a lost income opportunity of $194,094 as a result of the proposed lease and is summarised below and detailed in the Long Term Financial Plan (Annexure A – Long Term Financial Plans)

·    A total rental subsidy of $38,819 per annum or $194,094 over the lease term expiring 30 June 2026.

·    A total operational budget of $13,564 per annum or $60,390 over the lease term for non-recoverable costs and reactive/scheduled maintenance and repairs will be required in the 2022/23 FY and beyond.

·    A capital budget of $30,413 for building works comprising of a kitchen replacement and external painting which is required in the 23/24 FY and beyond.

 

 

Risk Implications

No risks identified. UDCRC have a strong presence within the local community and propose to continue to remain within the premises on a long-term basis.

 

The Lessee’s year-end financial statements have been reviewed to determine their financial capacity to pay rental and maintain the premises. Further information can be provided, noting that the Recommendation to Council takes this information into consideration.

 

 

MISSION AUSTRALIA 

Building 2, 78 St Vincent Street Ulladulla

 

Mission Australia are currently on holdover from their lease which expired 30 June 2020.  They have been in occupation of the site since approximately 2015 after taking over management of the Southern Shoalhaven Youth Services/Ulladulla Youth Centre and have since expanded the support and operations from the facility including Transition to Work, Brighter Futures and Grandparents Raising Grandchildren services.

 

Mission Australia is a major nationwide community service and have significant support and government funding for the running of a number of services to the community. 

 

Main Purpose: To provide support for young people in the Ulladulla region. We work closely with Ulladulla High School, providing skills programs for student groups and providing case management of at risk youth. We also operate a drop in program 3 days a week and school holiday programs. The programs are available for all young people in the community and provide a safe environment for youth to connect with youth workers at the centre.

 

Financial Implications

Council will continue to receive a determined rental with the previously agreed rental subsidy applied from their lease commencement date 1 July 2021 to their expiry date 30 June 2026.   The Lessee will be required to keep the premises in a clean and tidy condition and maintain that part of the land surrounding the building. 

An inspection occurred as part of the transaction negotiations which identified that the premises are generally in good condition with no major works required by Council over the lease term. The fit out is generally outdated and the tenant is looking at minor upgrades only.

The estimated cost to Council is $49,395 with a lost income opportunity of $200,160 as a result of the proposed lease and is summarised below and detailed in the Long Term Financial Plan (Annexure A – Long Term Financial Plans)

·    A total rental subsidy of $40,032 per annum or $200,160 over the lease term expiring 30 June 2026.

·    A total operational budget of $12,187 per annum or $60,935 over the lease term for non-recoverable costs and reactive/scheduled maintenance and repairs will be required in the 2022/23 FY and beyond.

·    A capital budget has not been identified as being required during the lease term.

 

 

Risk Implications

No risks identified. Mission Australia have a strong presence within the local community and nationwide and partner with a number of government agencies and bodies to obtain funding to provide services across the community.  They propose to continue to remain within the premises on a long-term basis. 

The Lessee’s link to the first online Annual Report including financial information for the year ending 30 June 2021 is https://www.missionaustralia.com.au/annual-report-2021This shows Income as $304.7M and Expenditure $291.7M which reflects that 88% of income was invested back into the Community.      

 

SOUTHERN SHOALHAVEN ZONE MEALS ON WHEELS 

Suites 1 and 3, 78 St Vincent Street Ulladulla

 

Southern Shoalhaven Zone Meals on Wheels (MonW) are currently on holdover on two leases which expired 30 June 2018 and 30 June 2021. They have been in occupation of Suite 1 since approximately 2006 and Suite 3 from 2013 which they initially shared with Milton Ulladulla Historical Society until the completion of the Ulladulla Civic Centre.   

 

MonW is a worldwide organisation which originated in Britain during World War II by assisting frail older people who wanted to stay in their own homes, but needed help to do so.  MonW started in Australia in 1952 in Melbourne where meals were delivered by a lady on a tricycle at a cost of 2 shillings per meal. There are now approximately 500 not for profit facilities within Australia independently run.

 

Meals on Wheels Australia Mission Statement:  Building the capacity of a network of self-managed not for profit community organisations that provide (food and other community services) that re-able and support people in their community.

 

Financial Implications

Council will continue to receive a determined market rental with the previously agreed rental subsidy applied from their lease commencement date 1 July 2021 to their expiry date 30 June 2026.  The Lessee will be required to keep the premises in a clean and tidy condition and maintain that part of the land surrounding the building.  

An inspection occurred as part of the transaction negotiations which identified that the premises are generally in good condition with no major works required by Council over the lease term.  The tenancy has a kitchen for meal preparation and the other area is being used for meal seating and food bag storage/collection.

The estimated cost to Council is $21,200 with a lost income opportunity of $81,490 as a result of the proposed lease and is summarised below and detailed in the Long Term Financial Plan (Annexure A – Long Term Financial Plans) noting that they occupy 43% of the building.

·    A total rental subsidy of $16,298 per annum or $81,490 over the lease term expiring 30 June 2026.

·    A total operational budget of $6,055 per annum or $30,275 over the lease term for non-recoverable costs and reactive/scheduled maintenance and repairs will be required in the 2022/23 FY and beyond.

·    A capital budget has not been identified as being required during the lease term.

 

 

Risk Implications

No risks identified. MonW have a strong presence within the local community and nationwide and partner with a number of government agencies and the public to provide services across the community. They propose to continue to remain within the premises on a long-term basis. 

The link to Meals on Wheels Australia’s Annual Report including financial information for the year ending 30 June 2021 is https://mealsonwheels.org.au/wp-content/uploads/2021/10/MOWA-Annual-Report-2021-FINAL-Digital.pdf. This shows Income as $1,372,818 ($1,039,792 government grants) and Expenditure $1,278,024 which reflects that 93% of income was invested back into the Community. Net Assets are $256,309 and Cash $102,480.

 

 

 

AUSTRALIAN UNITY HOMECARE SERVICE PTY LIMITED  

Suite 2, 78 St Vincent Street Ulladulla

 

Australian Unity Homecare Service Pty Limited (AUHS) have a lease which expires 30 April 2022. They have been in occupation of the site since approximately 2017 when they took over the Ulladulla and Nowra sites from FACS.    

 

AUHS was established in 1840, and were Australia’s first member-owned wellbeing company, offering members and customers health, wealth and care services.  Being a member-owned company, also called a mutual, gives  greater flexibility to invest money into the services and solutions that matter most to members, customers and the Australian community.

 

Purpose:  We are here to help people thrive in the areas of health, wealth and living. We enable customers to live independently in their own home by tailoring support in consultation with customer needs, funding program budget and provisions.

 

Financial Implications

Council will continue to receive a determined rental with the previously agreed rental subsidy applied from their lease commencement date 1 May 2022 until the expiry date 30 June 2026.  The Lessee will be required to keep the premises in a clean and tidy condition and maintain that part of the land surrounding the building.  

 

An inspection occurred as part of the transaction negotiations which identified that the premises are generally in good condition with no major works required by Council over the lease term. The tenancy is located in the middle of the building between Meals on Wheels and therefore has less natural light. With COVID, there appeared to be a number of desks which looked permanently vacated at the time of the inspection.

 

The estimated surplus to Council is $13,280 with a lost income opportunity of $44,058 as a result of the proposed lease and is summarised below and detailed in the Long Term Financial Plan (Annexure A – Long Term Financial Plans) noting that they occupy 57% of the building.

·    A total rental subsidy of $10,706 per annum or $44,058 over the lease term commencing 1 May 2022 and expiring 30 June 2026.

·    A total operational budget of $7,508 per annum or $31,333 over the lease term for non-recoverable costs and reactive/scheduled maintenance and repairs will be required in the 2022/23 FY and beyond.

·    A capital budget has not been identified as being required during the lease term.

 

 

Risk Implications

No risks identified.  AUHS have a strong presence within the local community and nationwide propose to continue to remain within the premises on a long-term basis. 

AUHS have provided a link to their Annual Report including financial information for the year ending 30 June 2021:

https://www.australianunity.com.au/-/media/rebrandcorporate/documents/annual-reports/fy21_australian_unity_annual_report.pdf

The Report reflects a profit of $32.9 m for the year end, please review the link for more information if required.  I have also been verbally advised that profits are expected to reduce by 50% within the next year due to the effects of covid.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Annexure A – Long Term Financial Plans

 

ULLADULLA AND DISTRICTS COMMUNITY RESOURCES CENTRE

Building 1, 78 St Vincent Street Ulladulla

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MISSION AUSTRALIA

Building 2, 78 St Vincent Street, Ulladulla

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SOUTHERN SHOALHAVEN ZONE MEALS ON WHEELS

Suites 1 and 3, 78 St Vincent Street, Ulladulla

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUSTRALIAN UNITY HOMECARE SERVICE P/L

Suite 2, 78 St Vincent Street, Ulladulla

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annexure B

Proposed Lease Terms – All Tenants

 

Note - Some anomalies maybe relevant in the existing leases current lease terms which will be adopted

Item 1

 

Premises

Buildings 1, 2 and 3, 78 St Vincent Street Ulladulla

Part Lot 1, DP1005058

Item 2

 

Lessee

 

Ulladulla and Districts Community Resources Centre

Mission Australia

Southern Shoalhaven Zone Meals on Wheels

Australian Unity Homecare Service Pty Limited   

Item 3

 

Lessor

Shoalhaven City Council
Administration Building 
42 Bridge Road, Nowra, NSW, 2541
Property Officer, Building Services

Tel: 02 4429 3111
Email
Council@shoalhaven.nsw.gov.au

Item 4

 

Permitted Use

Commercial offices and operations related to the Lessee’s community use

Item 5

 

Term

Refer to each Lessee’s Asset Table

Item 6

 

Commencement Date

Refer to each Lessee’s Asset Table

Item 7

 

Termination Date

30 June 2026

Item 8

 

Option

Nil

Item 9

 

Rent

Refer to each Lessee’s Asset Table 

Item 10

 

Rent Reviews

Annual 3.5% increases

Item 11

 

Outgoings

100%/47%/53% of the following outgoings which is related to your occupancy including;

·      Garbage disposal

·      Power, gas and internet

·      Water usage and sewerage costs

·      Fire compliance

·      Cleaning of gutters

Item 12

Lessors Improvements

The Lessor owns all buildings, structures, and equipment on the Premises including the kitchen, amenities.

Item 13

Lessees Improvements

The Lessee owns the office fit out within the building installed by the Lessee and may include air conditioning units.    

Item 14

Lessors Maintenance

The Lessor is responsible for structural works and the integrity of the building and site including roof repairs, replacement of fencing and maintenance of owned equipment.

Item 15

Lessees Maintenance

The Lessee is responsible for repairs, maintenance of the Premises including the Lessee’s Improvements, general lawn and garden maintenance, cleaning of gutters and ensuring that the Premises are presented and accessible in a condition suitable to the use.

Item 16

Redecoration

Redecoration will include internal repainting of the premises where relevant, three months prior to expiry/vacation and ensuring that all maintenance obligations are undertaken.

Item 17

 

Makegood

Upon expiry or vacation, the Lessee will vacate the Premises and hand back the Premises to the Lessor in a suitable condition taking into consideration redecoration and maintenance responsibilities. 

Item 18

 

Public Risk Insurance

Twenty million dollars ($20,000,000)

Lessor to be noted as interested party on the policy

Item 19

Bank Guarantee/Guarantor

Not applicable

Item 20

 

Documentation and preparation costs

Lease preparation costs to be funded by the Lessee

 

Item 21

Interest

Not applicable

Item 22

Percentage of Rental Subsidy

Refer to Lessee’s Asset Table

Item 23

Land Classification

Operational Land

Item 24

 

Other

Some leases may contain other terms which maybe relevant for each Lessee and will be adopted as part of this renewal

 

 


 

 Ordinary Meeting – Monday 27 June 2022

Page 1

 

 

CL22.277   Occupation of Part Lot A DP 343373, 173 Jacobs Drive, Sussex Inlet.

 

HPERM Ref:       D22/173374

 

Department:       Building Services

Approver:           Paul Keech, Director - City Services  

Reason for Report

To allow Council to consider options for the following proposed leases for a period of five years at part Lot A DP 343373, 173 Jacobs Drive, Sussex Inlet which will commence 1 August 2022.

1.   Sussex Inlet Cinema Australia P/L (Cinema Area)   

2.   Sussex Inlet Pottery Group Inc. (Rear Tenancy Behind Cinema)

 

 

Recommendation

That Council approve;

1.    The leases for part Lot A DP343373, 173 Jacobs Drive Sussex Inlet for a period of five years commencing 1 August 2022 and authorise the Chief Executive Officer to execute relevant documentation for the following leases;

a.   Sussex Inlet Cinema Australia P/L  (Commercial lease)

Cinema area     

Determined Rental $7,379 per annum

Determined Rent Review commencement of Year 3

Fixed 3.5% increases

b.   Sussex Inlet Pottery Group Inc  (Community lease)

Rear tenancy in the same cinema building      

Subsidised Rental $492 per annum 

Fixed 3% increases

2.    The estimated cost to Council of this arrangement over five years is $159,411 (today’s dollars), the key components being

a.   Rental income of $39,360 over the lease term. Note $7,872 per annum.

b.   A total operational budget of $143,471 over the lease term for non-recoverable costs and reactive/scheduled maintenance and repairs will be required in the 2022/23 FY and beyond. This equates to an average of $28,694 per annum.

c.   A capital budget of $55,300 for building works comprising of a replacement kitchen, external painting and replacement flooring which is required in the 24/25 FY and beyond.  This equates to an annual average expense of $11,060 per annum.

 

 

Options

1.    As Recommended

Council approves the Recommendation for the lease renewals for a term of five years which provides for the stipulated rentals and terms to be applied.

Implications: Council will secure a new and very experienced operator for the Cinema and generate increased community use.  This lease provides for the commercial tenant to maintain the building and does not provide for Council to incur additional costs.

The lease to the existing Sussex Inlet Pottery Group will be renewed at a continued subsidised rental and existing reduced maintenance obligations.

Note that Council will require the amount of $159,411 over the lease term to create a cost neutral position as required in Clause 5.8 Cost Recovery POL/40 Occupation of Council owned or Managed Land.

 

2.    Determined Rental Option

Council approve the leases for part Lot A DP343373, 173 Jacobs Drive Sussex Inlet for a period of five years commencing 1 August 2022 and authorise the Chief Executive Officer to execute relevant documentation for the following leases;

 

·    Sussex Inlet Cinema NSW P/L

Cinema area     

Determined Rental $7,379 per annum 

Determined Rental Review Year 3

 

·    Sussex Inlet Pottery Group Inc 

Rear tenancy in the same cinema building      

Determined Rental $720 per annum

                 Fixed 3% increases

Implications: The Recommendation provides for a determined rental to be applied to Sussex Inlet Cinema based on a valuation from Walsh and Monaghan in 2014 and annual increases applied.  It also includes the requirement for a market review at the commencement of year 3.  Securing the new operator at the current rental is recommended.

 

Sussex Inlet Pottery Group have an existing subsidised rental percentage of 64.55% which has been applied to the determined rental.  This is consistent with 19/40 - 5.17 Rental and other Fees and Charges.

 

3.    Opportunities For New Tenants

Investigate opportunity for new lessee’s (via a public advertising process) for the leasing of both tenancies within the Cinema building at part 173 Jacobs Drive Sussex Inlet and report back to Council on the responses and recommendation which include a lease term of five years. 

 

Implications: This is not recommended.  The Recommendation provides for a new experienced operator to run the Cinema and any advertising will remove the opportunity of the existing tenant to sell their business which is provided under their existing lease.  The Pottery Group have also been in occupation for over twenty years and it is anticipated that significant opposition to this Option will be received.  The financial outcome of this option provides only a minor rental increase from the Recommendation. 

 

Background

It is proposed to enter into leases for the Sussex Inlet Cinema NSW Pty Limited and Sussex Inlet Pottery Group Incorporated (Potters) for a term of five years commencing 1 August 2022.  The property is owned by Council and classified as operational land.

The Sussex Inlet Cinema building is currently leased to Movies @ 2540 Pty Limited, who operate the cinema, and Potters who run a community pottery group in a small tenancy at the rear of the building.  Both tenants are holding over under their current leases which have expired.

The Lions Club lease a small storage building behind the Council amenities building which expires 28 February 2023.  A separate report for the renewal of this lease will provide for a lease renewal consistent with the leases in the Recommendation which expire 31 July 2027.

Strategic Property are currently in the market investigating opportunities for community groups who require accommodation in the area which needs to be noted as part of this report.  These groups include the Library, a neighbourhood centre in the main street and a community health group who have been given notice to vacate from premises leased from NSW Health. 

 

Property

The site comprises of 1,378.46 square metres and is a rectangular shaped allotment with frontage on Jacobs Drive and located on the eastern fringe of the Sussex Inlet CBD.  The site includes the main cinema building, rear public amenities and adjacent kiln room, separate building leased for storage to the Lions Club and a portion of the rear public carpark.

Surrounding developments consist of an adjacent church site to the east and beyond the Kalua Caravan Park, Council park to the west and commercial premises opposite to the south. 

The site is zoned SP2 Infrastructure with objectives of the zone;

·    To provide for infrastructure and related uses

·    To prevent development that is not compatible with or that may detract from the provision of infrastructure

 

The main building is constructed of a fibro clad exterior and a colour bond roof measuring approximately seventy eight feet by thirty four feet.  It was constructed in approximately 1947 to cater for the small local population however the showing of pictures was not approved until 1948.  The building area totals 342 square metres and now provides accommodation for the cinema occupying approximately 295 square metres with frontage to Jacobs Drive, and the Potters located at the rear in the balance of 47.85 square metres.

A Conservation Management Plan exists for the site identifying that it has local heritage significance and notes the cinema building and cinema fit out has high and moderate significance. 

LOCATION

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Description automatically generated

 

Property Strategy

 

The leases for the Cinema, Pottery Group and separate Lions Club have previously had different lease expiry dates which will now be aligned to 31 July 2027.   Negotiations for the lease renewal with the Lions Club will form part of a separate report with a lease term commencing 1 March 2023 and expiry date 31 July 2027.

 

Strategic Property have advised they are investigating the potential purchase of the adjacent site at 175 Jacobs Drive Sussex Inlet.  If this purchase proceeds, this will provide an opportunity for a strategic review for the best use and activation of both sites noting the operational land classification.

 

Community Engagement

This site is classified as operational land and community engagement for the proposed leases is not required.  We have engaged with Strategic Property as part of these renewals.

 

Policy Implications

POL19/40 Occupation of Council owned or Managed Land

Clause 5.8 Cost Recovery provides that Council “is to ensure that agreements do not impose an unreasonable burden on general revenue.   Council is to obtain a reasonable dividend and at a minimum, cost neutrality from the use of its property, i.e. the tenancy is to be at no cost to Council. “ 

Implication – Cost Recovery is A market rental and commercial maintenance obligations are proposed for the Cinema tenancy who occupy approximately 85% of the building.  The balance of the building (15%) is occupied by a community tenant who does not obtain government funding as consistent with Clause 5.17 (below).

Clause 5.9 Defined Lease Term notes that “no lease is for a term greater than five years unless under exceptional circumstances

Implication - The Recommendation for the lease term of five years is consistent with this requirement. 

Clause 5.17 Rental and Other Fees and Charges provides in clause 5.17.1 for “All rents charged in the first instance are to be determined in accordance with market values…

Implication - The Recommendation for the lease term of five years is consistent with this requirement. 

Clause 5.17.2 Rental figure is determined through a rental assessment framework (RAF). Only in exceptional circumstances where the community group can demonstrate that it essentially functions as a self-help group (with no funding from State or Federal Government) with the local community, will Council consider a rent equivalent to the minimum statutory rent.” 

Implication – The tenant has demonstrated that they do not receive any state or federal funding and have previously been provided with a rental subsidy percentage of 64.55% in order to determine the rental. The Recommendation is consistent with this requirement however the charging of a full market rental under Option 2 will not be consistent with this Policy.

Clause 6 Review provides for “It will be reviewed within one year of the election of every new Council, or earlier if required. “

Implication - We are currently reviewing the Policy and will be providing recommendations for consideration by Council. 

 

PROPOSED LEASES

Sussex Inlet Cinema

Movies @ 2540 are currently on holdover from their lease which expired 31 August 2020.  They are also the lessee’s for the Huskisson Cinema which is leased from Council and also subject to a renewal as a part of a separate report. 

They originally advised that they required a lease renewal after the effects of covid were determined, however subsequently approached Council advising that they wished to sell their business due to personal commitments. 

As a result of the lease being on holdover, a new lease will be required with the proposed new operator/lessee.  Clause 10 of the current lease provides for a transfer of the lease subject to approval by the Lessor, which cannot be unreasonably withheld.  Relevant financial details and experience have been received in confirmation that the proposed new lessee has significant experience and financial capacity to pay rental and maintain the premises. 

Three Directors currently run Empire Cinemas in Bowral, which has won several awards, and have over seventy combined years’ experience in the industry.  The financial statements for the years ending 30 June 2021 and 30 June 2020 for their Bowral cinemas have been reviewed showing significant profit and demonstrating that they have financial capacity.  This information has been excluded for privacy reasons.

The new owners have offered a rental consistent with the current lease being $7,379.50 per annum and it is recommended that this is adopted in order to secure the new operator.  A market rental at the beginning of year three is proposed, rather than at the expiry of the lease term 31 May 2027, and will include a ratchet clause restricting the rental to decrease. 

It is noted that the last valuation was undertaken by Walsh and Monaghan in 19 December 1997 which provided for a market rental of $5,200 per annum.   The current rental of $7,379.50 per annum relates to subsequent increases which have been applied over the years. 

 

The lease commencement date is proposed as 1 August 2022 however may change due to the sale of the business but the expiry date will remain as 31 July 2027.

 

Financial Implications

Council will continue to receive rental for a term of five years which will increase annually by 3.5% and be reviewed at the commencement of year 3. They will be required to keep the premises in a clean and tidy condition, maintain all equipment and that part of the land surrounding the building. Council is responsible for the structural integrity, replacement of owned equipment.  

An inspection occurred as part of the transaction negotiations which highlighted that whilst the building is older, it is generally in good condition.  The Lessee is required to maintain the building and equipment as part of the lease conditions.

The estimated total cost to Council is $77,552 as a result of the proposed lease - as summarised below and detailed in the Long Term Financial Plan (Annexure A – Long Term Financial Plans)

a.   No rental subsidy is relevant for this transaction

b.   An operational budget of $19,533 per annum or $99,152 over the lease term for both non recoverable costs and reactive/scheduled maintenance and repairs will be required in the 2022/23 FY and beyond.

c.   A capital budget of $15,300 for building works comprising of external painting and floor replacement which is required in the 24/25 FY and beyond.  This equates to an annual average expense of $3,060 per annum

Note that Council will require the amount of $77,552 over the lease term to create a cost neutral position as required in Clause 5.8 Cost Recovery POL/40 Occupation of Council owned or Managed Land.

 

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Risk Implications

There is some risk that the change in the way movies can now be streamed at home together with covid could have a long-term effect on the cinema business.  The new owners however have significant experience in the industry and are located in a unique heritage building and propose to continue to remain within the premises on a long-term basis. 

Comments regarding the new operators financial position are provided above and note that a bank guarantee for six months will also be obtained as part of the new lease.

 

Sussex Inlet Pottery Group Incorporated (Potters)

The lease to the Potters expired 31 October 2019 and they are currently on holdover.   It is proposed to enter into a lease renewal for a term of five years from 1 August 2022 and have been in occupation of the premises since approximately 2001 for a subsided rental of $492 per annum which is the current rental being paid.   

The Potters previously advised Council that they did not want to renew their lease due to reduced member numbers and the impacts from COVID.  They have now advised that they wish to proceed with a lease if Council prepare and pay for lease documentation, which will be included in the operational budget required by Building Services.

The Potters are a local community group that provide classes and membership to the local community.  They currently have approximately 35 members and run limited classes during the week and weekends. COVID has affected the member numbers and class attendance and their profitability, hence the ability to pay a limited rental.

 

Leased Area

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Description automatically generated

 

Financial Implications

Council will continue to receive a subsidised determined rental for a term of five years of $492 per annum.  The Lessee will be required to keep the premises in a clean and tidy condition and maintain that part of the land surrounding the building.  Council will be responsible for fire compliance, cleaning of their proportion of the guttering.

An inspection occurred as part of the transaction negotiations which highlighted that a number of works are required by Council during the term of the lease including installation of air conditioning and some improvements to the amenities and kitchen which are beyond their lifecycle. 

The estimated total cost to Council is $81,859 as a result of the proposed lease -as summarised below and detailed in the Long Term Financial Plan (Annexure A – Long Term Financial Plans)

a.   A total rental subsidy of $228 per annum or $1,140 over the lease term

b.   An operational budget of $8,864 per annum or $44,319 over the lease term for both non recoverable costs and reactive/scheduled maintenance and repairs will be required in the 2022/23 FY and beyond.

c.   A capital budget of $40,000 for building works comprising of a kitchen replacement which is required in the 24/25 FY.   This equates to an annual average expense of $13,334 per annum

Note that Council will require the amount of $81,859 over the lease term to create a cost neutral position as required in Clause 5.8 Cost Recovery POL/40 Occupation of Council owned or Managed Land.

 

 

Table

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Risk Implications

Minimal. The Potters are a small group who have been in occupation for over twenty years and propose to remain in the premises on a long term basis.  Whilst they have no government financial support they have sufficient funds to remain operational based on a subsidised rental and Council continuing to assist with building maintenance. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annexure A Long Term Financial Plan, Sussex Inlet Cinemas Australia P/L

 

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Long Term Financial Plan, Sussex Inlet Potters Inc

 

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Annexure B - Terms Schedule

 

Sussex Inlet Cinema NSW P/L

 

Item 1

 

 

Premises

Part 173 Jacobs Drive, Sussex Inlet  

Part Lot A DP343373

As detailed in lease plan

Item 2

 

Lessee

 

Sussex Inlet Cinema NSW Pty Limited

ABN TBC

 

Item 3

 

Lessor

Shoalhaven City Council
Administration Building 
42 Bridge Road, Nowra, NSW, 2541
Property Officer, Building Services

Tel: 02 4429 3111
Email
Council@shoalhaven.nsw.gov.au

Item 4

 

Permitted Use

Cinema.

Conservation Management Plan – The building maybe used for general community purposes such as meetings of community groups, education and arts and crafts. 

Item 5

 

Term

5 years (or as amended depending on the commencement date)

Item 6

 

Commencement Date

1 August 2022 (or as subsequently agreed to align with the sale of the business)

Item 7

 

Termination Date

31 July 2027  (To be static)

Item 8

 

Option

Nil

Item 9

 

Rent

$7,379.00 plus GST per annum, payable in advance

Item 10

 

Rent Reviews

Annual 3.5% increases 

Market rent review 1 August 2024 or at the beginning of year 3 of the Term

Item 11

 

Outgoings

Comprising of the following outgoings noting that 85% of the building is occupied; 

•               Local Council Rates and Charges

•               Water, Sewerage and Drainage Charges

•               Building insurance

•               Garbage Removal

•               Fire Services costs

•               Cleaning of guttering

•               Any charges referenced in the current unregistered lease expiring 31 August 2020

 

Item 12

Lessors Improvements

The Lessor owns all buildings, structures, and equipment  comprising of the Premises including the air conditioning units, kitchen and amenities. 

Item 13

Lessees Improvements

The Lessee owns any equipment already in the premises forming the Lessee’s fit out for the operation of the Permitted Use   

Item 14

Lessors Maintenance

The Lessor is responsible for structural works and the integrity of the building including roof repairs and any equipment including air conditioning.  

Item 15

Lessees Maintenance

The Lessee is responsible for repairs, cleaning and maintenance of the Premises including any equipment owned by the Lessor including air conditioning units, and ensuring that the Premises are presented and accessible in a condition suitable to the use.

 

In the event that the Lessor maintains any equipment, costs are to be recovered from the Lessee.

Item 16

Redecoration

Three months prior to vacation

 

Item 17

 

Makegood

Upon Licence expiry or vacation, the Lessee will vacate the Premises and hand back the Premises to the Lessor in a suitable condition which includes the removal of the Lessee’s fit out, furniture and equipment. 

Item 18

 

Public Risk Insurance

Twenty million dollars ($20,000,000)

Lessor to be noted as interested party on the policy

Item 19

Bank Guarantee/Guarantor

A bank guarantee equivalent to six months rental plus personal guarantees

Item 20

 

Documentation and preparation costs

Lease preparation costs incurred by the Lessor are to be paid by the Lessee which includes the lease preparation by an external party.

 

The Lessee notes that the new lease will not be in the same format as the current lease to Movies @ 2540 Pty Limited however may contain similar terms and conditions

Item 21

Interest

Not applicable

Item 22

Land Classification

Operational Land

 

Item 23

 

Other

The lease will reference that the building and site has heritage significance and any repairs, replacements, or new works to the building will need to be reviewed by the Lessor to determine the impact on the site and if heritage approvals are required.  Any costs associated with the Lessees works will be at their cost including the appointment of heritage consultants.

 

Sussex Inlet Potters Inc

 

Item 1

 

 

Premises

Part 173 Jacobs Drive, Sussex Inlet  

Part Lot A DP343373

As detailed in lease plan

Item 2

 

Lessee

 

Sussex Inlet Potters Inc

 

Item 3

 

Lessor

Shoalhaven City Council
Administration Building 
42 Bridge Road, Nowra, NSW, 2541
Property Officer, Building Services

Tel: 02 4429 3111
Email
Council@shoalhaven.nsw.gov.au

Item 4

 

Permitted Use

Community group for the purpose of arts and crafts

Conservation Management Plan – The building maybe used for general community purposes such as meetings of community groups, education and arts and crafts. 

Item 5

 

Term

5 years

Item 6

 

Commencement Date

1 August 2022

Item 7

 

Termination Date

31 July 2027 

Item 8

 

Option

Nil

Item 9

 

Rent

$492.36 plus GST per annum, payable in advance

Item 10

 

Rent Reviews

Annual 3.0% increases 

Item 11

 

Outgoings

Comprising of the following outgoings noting that 15% of the building is occupied; 

•               Local Council Rates and Charges

•               Water, Sewerage and Drainage Charges

•               Building insurance

•               Garbage Removal

 

Item 12

Lessors Improvements

The Lessor owns all buildings, structures, and equipment  comprising of the Premises including the air conditioning units, kitchen and amenities. 

Item 13

Lessees Improvements

The Lessee owns any equipment already in the premises forming the Lessee’s fit out for the operation of the Permitted Use   

Item 14

Lessors Maintenance

The Lessor is responsible for structural works and the integrity of the building including roof repairs and any equipment including air conditioning, fire services, cleaning of gutters.  

Item 15

Lessees Maintenance

The Lessee is responsible for repairs, cleaning and maintenance of the Premises including any equipment owned by the Lessor including air conditioning units, and ensuring that the Premises are presented and accessible in a condition suitable to the use.

 

Item 16

Redecoration

Not applicable

 

Item 17

 

Makegood

Upon Licence expiry or vacation, the Lessee will vacate the Premises and hand back the Premises to the Lessor in a suitable condition which includes the removal of the Lessee’s fit out, furniture and equipment. 

Item 18

 

Public Risk Insurance

Twenty million dollars ($20,000,000)

Lessor to be noted as interested party on the policy

Item 19

Bank Guarantee/Guarantor

Not applicable

Item 20

 

Documentation and preparation costs

Lease preparation costs are to be incurred by the Lessor

 

Item 21

Interest

Not applicable

Item 22

Land Classification

Operational Land

 

Item 23

 

Other

The lease will reference that the building and site has heritage significance and any repairs, replacements, or new works to the building will need to be reviewed by the Lessor to determine the impact on the site and if heritage approvals are required.  Any costs associated with the Lessees works will be at their cost including the appointment of heritage consultants.

 

 


 

 Ordinary Meeting – Monday 27 June 2022

Page 1

 

 

CL22.278   Transport for NSW Acquisition - Jervis Bay Road Intersection

 

HPERM Ref:       D22/69271

 

Department:       Technical Services

Approver:           Paul Keech, Director - City Services 

Attachments:     1.  Area for acquisition by TfNSW   

Reason for Report

This report provides Council with an opportunity to consider an acquisition by agreement with Transport for NSW (TfNSW) for approximately 11,314m2 of land shown as pink highlight on Attachment 1 (D22/67913) located at Jervis Bay Road, Old Princes Highway and Princes Highway, Falls Creek.

The subject Lots are:

·    Lots 35, 36 & 37 DP1088614 – Jervis Bay Road Falls Creek;

·    Lot 38 DP24409 – Jervis Bay Road Falls Creek;

·    Lot 1 DP15507 – Old Princes Highway Falls Creek;

·    Lot 1 DP578303 – Princes Highway Falls Creek.

 

Recommendation

That Council:

1.    Authorise the acquisition by agreement with TfNSW for Lots 35, 36 & 37 DP1088614, Lot 38 DP24409, Lot 1 DP15507 and Lot 1 DP578303 as shown in Attachment 1 (D22/67913) for compensation of $725,000 plus GST if applicable, (seven hundred and twenty-five thousand dollars) in accordance with the Land Acquisition (Just Terms Compensation) Act 1991;

2.    Authorise all proceeds of the acquisition to be allocated to the Property Reserve with $700,000 being allocated the Property Reserve – General and $25,000 being allocated to the Property Reserve – Roads.

3.    Authorise the Chief Executive Officer to sign any documentation required to give effect to this resolution and to affix the Common Seal of the Council of the City of Shoalhaven to all documentation as required.

 

 

Options

1.    Adopt as recommended

Implications: This will allow TfNSW to proceed with the Jervis Bay Road Intersection Upgrade in a timely manner and distribution of funds to be allocated to the Property Reserve for future use in accordance with the Roads Act 1991 and the Local Government Act 1993, 

 

2.    Not adopted as recommended

Implications: Reject the acquisition by agreement forcing TfNSW to pursue compulsory acquisition under the Land Acquisition (Just Terms Compensation) Act 1991 and the valuation of land will be determined by the Valuer General. The acquisition will still occur but there will be a delay in the process.  Notwithstanding this, under Section 175 of the Roads Act 1993, TfNSW may take possession of land for the purpose of carrying out road works. Should compulsory acquisition be actioned by TfNSW, Council is required to submit a formal claim outlining reasons for such claim.

 

Background

NSW Government have committed funding to allow construction of the Jervis Bay Road Intersection as part of the Princes Highway Upgrade Program.   Construction is due to commence in 2023.  TfNSW requires acquisition of the lots (as shown in attachment 1) to facilitate construction.  TfNSW has provided Council with a copy of the Valuation Report which was undertaken by an independent Registered Valuer. 

Council has received a Letter of Offer from TfNSW with the value of compensation as outlined below:  

·    35,36,37 DP1088614 and Lot 38 DP24409 (Compensation offered - $700,000 -10,540m2)

·    Lot 1 DP15507 (Compensation offered - $20,000 – 690m2)

·    Lot 1 DP578303 (Compensation offered - $5,000 – 84m2)

Lots 35, 36, 37 DP1088614 and Lot 38 DP24409 are classified as Community land categorised as Natural Area – Bushland.  TfNSW is seeking Council’s concurrence to all the land being compulsory acquired on agreed terms so that the land transfer can proceed facilitating the timely construction of the Jervis Bay Road Intersection Upgrade.

Lots 1 DP 578303 and Lot 1 DP 15505 Princes Highway are both operational land and are zoned SP2 Infrastructure – Road.

Community Engagement

Community Engagement is being undertaken by TfNSW.  Consultation reports can be found on TfNSW Jervis Bay Road and Princes Highway Intersection project page. 

No engagement is required by Council.

Internal comments were sought and have been received.  Internal comments did not identify any barriers to acquisition, nor any attributes of the land to be acquired that would vary the compensation offered.    

Policy Implications

There are no policy implications.

Financial Implications

TfNSW agreed to use Council’s preferred valuer being Walsh and Monaghan and agreed to a joint valuation. Joint instructions for Valuation were issued by Council and TfNSW.  Compensation was assessed at $725,000 in accordance with the Land Acquisition (Just Terms Compensation) Act 1991.  The Valuation Report has been reviewed and is a fair reflection of compensation.  

All proceeds will be allocated to the Property Reserve with $700,000 being allocated the Property Reserve – General and $25,000 being allocated to the Property Reserve – Roads.

 

 

Lot

DP

Area

Valuation

Classification/categorisation

35

1088614

427m2

See below

Community Land – Natural Area

36

1088614

434m2

See below

Community Land – Natural Area

37

1088614

438m2

See below

Community Land – Natural Area

38

22409

9241m2

See below

Community Land – Natural Area

Subtotal

 

10,540m2

$700,000

 

1

578303

84m2

$5,000

Operational Land

1

15507

690m2

$20,000

Operational Land

Grand Total

 

11,314m2

$725,000

 

 

Risk Implications

There is a reputational risk to Council should Council not agree to the terms contained in the Letter of Offer as this will delay construction of the intersection as TfNSW will move to compulsory acquisition of the lots in accordance with the Land Acquisition (Just Terms Compensation) Act 1991.   

 

 


 

 Ordinary Meeting – Monday 27 June 2022

Page 1

 



 

 Ordinary Meeting – Monday 27 June 2022

Page 1

 

 

CL22.279   Classification of Land - Lot 319 DP 1265359 Somerset Avenue, South Nowra

 

HPERM Ref:       D22/183531

 

Department:       Technical Services

Approver:           Paul Keech, Director - City Services  

Reason for Report

The reason for this report is to provide Council with an opportunity to consider the classification of land being Lot 319 DP 1265359 Somerset Avenue, South Nowra, described as drainage reserve, as ‘Operational Land’ within the meaning of the Local Government Act 1993.

 

Recommendation

That Council classify the land described as Lot 319 DP 1265359 Somerset Avenue, South Nowra, as Operational Land within the meaning of the Local Government Act 1993.

 

 

Options

1.    As recommended.

Implications: The operational classification will provide Council with flexibility in its use and any future dealings.

 

2.    Not resolve as recommended.

Implications: The land will default to Community Land and be subject to the Community Land provisions as outlined in the Local Government Act 1993.

 

Background

As part of approved subdivision SF9822, Lot 319 DP 1265359 was dedicated to Council as Drainage Reserve. Land registration date was 5 April 2022.

 

The described lot is 1.343 Ha in size, and zoned C2 – Environmental Conservation and is highlighted in the Site Plan below. It is vacant land and densely vegetated with Browns Creek traversing the lot from South to North.  Browns Creek also passes through the adjoining lot to the South (Lot 322), which is also Council owned Drainage Reserve and classified as Operational land. It is the presence of Browns Creek, indicating the lowest point in the surrounding catchment, that triggers the designation as Drainage Reserve.

 

 

 

 

 

 

 

 

 

 

 

Site plan

A picture containing crowd

Description automatically generated

 

The classification of Lot 319 as Operational is appropriate to retain the authority of Council to undertake drainage related works within the lot should the need arise in the future. That classification will also maintain consistency with the adjoining Lot 322 for future planning and operational considerations.

 

Community Engagement

In accordance with Section 34 of the LGA 1993, a public notice of Council’s intention to classify the land as Operational was placed the South Coast Register allowing 28 days for written submissions. No submissions have been received.

 

Policy Implications

Section 31(2) of the Local Government Act, 1993 (LGA93) provides that before Council acquires land, or within 3 months after it acquires land, Council may resolve to classify it.

There are two classifications available:

1.   Operational Land – land which Council owns as a business entity and upon which it conducts Council business, and

2.   Community Land – land in Council’s ownership which is held for and on behalf of the Community subject to the Community Land provisions of the LGA 1993.

A resolution of Council, within the time frame prescribed in the LGA 1993, is required to finalise the classification of land as Operational.

 

Financial Implications

Land incorrectly classified (via resolution or by default) that subsequently requires an inability to be dealt with will require a reclassification to Operational Land that involves making an LEP amendment under the EPA Act 1979. This is a time-consuming and costly exercise with no budget having been provided

 

Risk Implications

Not applicable.