Agenda of Ordinary Meeting - Monday, 25 July 2022

Ordinary Meeting – Monday 25 July 2022

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CL22.302 Investment Report - June 2022

HPERM Ref: D22/282426

Department: Finance

Approver: Kevin Voegt, Director - City Performance

Attachments: 1. Shoalhaven Monthly Report - June 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 30 June 2022.

2. Note that Council’s total Investment Portfolio (excluding the Long-Term Growth Fund) returned 1.04% per annum for the month of June 2022, exceeding the benchmark AusBond Bank Bill Index (0.61% pa) by 43 basis points (0.43%).

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 30 June 2022 be received for information.

Implications: Nil

2. Further information regarding the Record of Investments for the period to 30 June 2022 be requested.

Implications: Nil

3. The report of the Record of Investments for the period to 30 June 2022 be received for information, with any changes requested for the Record of Investments to be reflected in the report for the period to 31 July 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 a negative -2.64% p.a. for the month of June 2022, due to the negative movement of the growth fund.

The investment returns excluding growth fund were a stable 1.04% p.a., exceeding the benchmark AusBond Bank Bill Index (0.61% p.a.) by +43bp p.a.

The Reserve Bank is concerned about the rate of inflation and will continue to increase the cash rate in coming months. Market expectations point to a cash rate of 3.0% by the end of this calendar year. Consequently, Council’s Investment return rates are projected to increase further.

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 – June 2022

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

Fund	Monthly Budget $	Actual Earned $	Difference $
General	95,260	91,662	(3,598)
Water	62,137	51,472	(10,665)
Sewer	29,534	31,802	2,268
Total excluding Long-Term Growth Fund	186,931	174,935	(11,996)

The interest earned for the month of June, excluding changes in the fair value of the TCorp Long-Term Growth Fund was $174,935 compared to the monthly budget of $186,931.

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	931,208	80.35%
Water	756,000	525,740	69.54%
Sewer	359,333	306,397	85.27%
Total excluding Long-Term Growth Fund	2,274,333	1,763,345	77.53%

The interest earned to the month of June excluding the change in fair value of TCorp Long-Term Growth Fund was $1,763,345 which is 77.53% of the current full year budget.

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

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Long Term Growth Fund

Council’s investment in Long-Term Growth Fund returned a negative -33.75% (annualised) for the month of June 2022, further offsetting previous significant market gains, bringing the year-to-date return to a negative -6.97% (-12.97% 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.

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Long-Term Growth Fund Fair Value – June 2022

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

Fund	Monthly Budget $	Actual Earned $	Difference $
Long-Term Growth Fund	16,438	(642,273)	(658,712)

The fair value of TCorp Long-Term Growth Fund decreased in June by -$642,273. 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	(1,410,926)	(705.46%)

The fair value of TCorp Long-Term Growth Fund decreased in June by -$1,410,926 which is -705.46% 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:

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Cash and Restricted Assets

Record Of Investments
Cash and Investment Balances
	$	$
	June 2022	May 2022
Cash and Investments Held
Cash at Bank - Transactional Account	3,858,040	15,372,095
Cash on Hand	20,391	20,729
Other Cash and Investments	193,481,909	203,116,062
	197,360,341	218,508,886
Fair Value Adjustment	(258,261)	(160,868)
Bank Reconciliation	500,225	582,677
	241,964	421,809
Book Value of Cash and Investments	197,602,305	218,930,695
Less Cash & Investments Held in Relation to Restricted Assets
Employee Leave Entitlements	7,049,913	7,049,913
Critical Asset Compliance	484,819	580,836
Other Internal Reserves	5,779,115	3,972,895
Section 7.11 Matching Funds	311,169	311,169
Industrial Land Development Reserve	4,368,341	4,633,995
Plant Replacement	1,719,096	2,551,800
S7.11 Recoupment	629,694	629,694
Commitment To Capital Works	1,374,063	1,662,409
Total Internally Restricted	21,716,210	21,392,711

Loans - General Fund	14,574,004	16,985,681
Self-Insurance Liability	3,040,465	2,975,174
Grant reserve	26,818,912	30,874,348
Section 7.11	20,730,960	20,663,852
Special Rate Variation	4,239,744	5,563,940
Storm Water Levy	278,306	500,608
Trust - Mayors Relief Fund	161,539	161,495
Trust - General Trust	4,846,215	3,904,109
Waste Disposal	232,206	3,249,672
Sewer Fund	31,982,077	31,141,790
Sewer Plant Fund	5,190,447	5,119,802
Section 64 Water	20,607,249	20,518,500
Water Fund	26,012,841	26,900,178
Water Communication Towers	4,445,187	4,434,270
Water Plant Fund	6,944,875	6,836,614
Total Externally Restricted	170,105,027	179,830,033

Total Restricted	191,821,237	201,222,743
Unrestricted Cash Balance - General Fund	5,781,069	17,707,952

Restricted Asset Movements

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

Total Cash	(21,328,390)	June was not a rates instalment month. Significant creditor payments were due in June.
Other Internal Reserves	1,806,221	Recognition of Dividends from Shoalwater and other movements.
Plant Replacement	(832,704)	Fleet Plant Purchases
Loans - General Fund	(2,411,677)	Delivery of major capital projects funded by loans including Moss Vale Road South (-1.2M), Coonemia Rd (-0.3M), Boongaree - Stage 2 to 7 (-0.3M) and SEC Upgrade & Cladding (-0.1M).
Grant reserve	(4,055,436)	Grant funded capital projects are underway including Special local Roads Improvements, Huskisson Mangrove Boardwalk (-0.6M), AATP Stage 5 (-0.3M) and Street Lighting (-0.2 M)
Special Rate Variation	(1,324,196)	Various projects
Trust - General Trust	942,105	Bishop Drive Mollymook - Voluntary Planning Agreement (1M)
Waste Disposal	(3,017,466)	June was not a rates instalment month.
Sewer Fund	840,287	Receipts for sewer services.
Water Fund	(887,336)	Various capital projects expenses.
Unrestricted cash	(11,926,884)	June was not a rates instalment month and significant payments were made to suppliers in June.

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

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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 June 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

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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

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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 June for all funds.

Cash Expense Cover Ratio

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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 June 2022 for all funds.

The first graph displays the June 2022 Cash Expenses Cover Ratio and, the second graph displays the previous rolling 6-months Cash Expenses Cover Ratio by fund.

Unrestricted Cash

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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 June 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: 8^th July 2022

Ordinary Meeting – Monday 25 July 2022

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CL22.303 Strategic Planning Works Program - Proposed 2022-2023 Version

HPERM Ref: D22/148523

Department: Strategic Planning

Approver: Carey McIntyre, Director - City Futures

Attachments: 1. Adopted 2021-2022 Strategic Planning Works Program ⇩

2. Proposed 2022-2023 Strategic Planning Works Program ⇩

Reason for Report

The purpose of this report is to present the proposed 2022-2023 Strategic Planning Works Program (SPWP) to Council for consideration and adoption. This report was initially tabled for discussion and early Councillor feedback at Council’s Strategic Planning Working Party on 9 June 2022.

Also, Council staff will continue, alongside ongoing work, to focus on the following existing key priority projects during the remainder of 2022 given their significance:

· Moss Vale Road North Urban Release Area - package of plans to ‘release’ the development of this key new residential area (post-exhibition and finalisation);

· Nowra Riverfront Masterplan Realisation (i.e., Nowra Riverfront Advisory Taskforce); and

· Milton-Ulladulla Structure Plan Review.

The report also presents an opportunity for a new land planning strategy and scheme for the City.

Recommendation

That Council:

1. Adopt Attachment 2 as Council’s Strategic Planning Works Program for 2022-2023.

2. Make future changes or additions to the Strategic Planning Works Program only after considering the current program and project priority as shown within the Strategic Planning Works Program in Attachment 2.

3. Discuss in a separate and dedicated workshop/s, the need for a new land use planning strategy and schemes (Local Environmental Plan, Development Control Plan and Infrastructure Planning) for the City and to consider the ways this could be undertaken and delivered in a timely manner.

Options

1. As recommended.

Implications: This option is favoured as it builds on the 2021-2022 SPWP and continues to guide Council’s strategic planning effort, ensuring we are proactively undertaking forward planning in a managed way in the shorter term while considering the option of establishing a new strategic planning framework for the City.

The SPWP assists in the prioritisation of projects and management of staff work allocation.

The need to consider the establishment of a new contemporary strategic planning framework has been raised in recent community feedback. This could include consideration of a new planning strategy framework (e.g., citywide growth management strategy or similar) which could inform a new or alternate direction for Council’s Local Environmental Plan (LEP), Development Control Plan (DCP) and Infrastructure Planning (i.e., Contributions Plan) mechanisms.

2. Not adopt the 2022-2023 SPWP and react to requests, opportunities etc. as they arise in the future.

Implications: This option would mean that Council reacts to requests, opportunities, requirements etc. for strategic planning work in an ad-hoc or unmanaged manner. This is not desirable as it does not necessarily focus Council’s efforts in areas or on projects that support the broader community or are required by legislation or other drivers.

This option may or may not also consider the establishment of a new contemporary strategic planning framework. Based on recent community feedback, there is merit in exploring the opportunities presented a new contemporary Citywide planning framework via a workshop or other suitable forum.

3. Adopt an alternative recommendation.

Implications: The 2022-2023 SPWP has been prepared taking into consideration current and expected strategic planning tasks and known planning challenges/expectations. Modifications to the SPWP at this stage may, depending on the nature of the modification, delay its adoption or the ability to deliver projects on the SPWP.

As above, this option may or may not also consider the establishment of a new contemporary strategic planning framework. A new contemporary Citywide planning framework could assist in the investigation and progression of a range of emerging planning issues, including a number of varied matters recently raised by the community which are outlined in this report.

Background

Strategic Planning Works Program – Recent History

In 2017, following a number of workshops to help set its format and content, the then Council (MIN17.612) adopted and finalised the new current iteration of the SPWP (2017-2018) to guide Council’s strategic land use planning efforts.

In simple terms the projects that are contained in the SPWP are generally undertaken under the provisions of the NSW Environmental Planning & Assessment Act, 1979 (e.g., Local Environmental Plan, Development Control Plan, Contributions Plan etc.) or are related strategy or policy work that could ultimately lead to a specific project of this nature.

Most recently the 2021-2022 SPWP was adopted by Council in July 2021 (MIN21.455) and is provided as Attachment 1.

As part of the 2018-2019 SPWP adoption, it was resolved that the work program be reported to Council annually mid-year to coincide with each new financial year. This annual report is provided consistent with this resolution, noting that the report was initially tabled at Councils Strategic Planning Working Party on 9 June 2021. Unfortunately, due to time constraints, the SPWP was not discussed at the Working Party, however the draft SPWP was provided to Councillors for their consideration and feedback. No specific feedback or suggested changes were received.

It is important to note that Council continues to receive a range of feedback about the need for new and contemporary strategic land use plans (i.e., growth management strategies) and planning scheme (LEP, DCP etc) for Shoalhaven. This has particularly emerged as a result of community feedback, pandemic experiences and the resultant demographic pressures/growth that is now being experienced. As such, it is now considered timely that Council considers taking a ‘fresh eyes’ look at its land use planning strategy which could also inform a new or alternate direction for Shoalhaven’s planning scheme into the future. It is therefore recommended that Council have a workshop to discuss this and how it could be undertaken. If pursued this would also then flow through into an adjusted or new SPWP. In the interim, direction is also sought on the proposed 2022-2023 SPWP.

2022-2023 Strategic Planning Works Program

In preparing the adjusted 2022-2023 SPWP (Attachment 2) for consideration by Council, the following matters were considered:

· Current Strategic Planning tasks.

· Expected Strategic Planning tasks (e.g., arising from the Local Strategic Planning Statement).

· Community involvement and expectations around land use planning (e.g., Community Strategic Plan/Integrated Strategic Plan exhibition outcomes).

· Community requests for area specific projects to be progressed (discussed further below Table 2).

· Ongoing, known and future land use planning challenges.

· Available Council capacity.

· Matters arising from the ongoing and often immediate reforms to the NSW planning system.

At this point the 2022-2023 SPWP retains the existing program structure, notably the priority areas and overarching strategies outlined in Table 1, (established through the original 2017 Council workshop process).

Table 1: Current retained SPWP priority areas and overarching strategies

Priority	Priority Area	Overarching Strategy
1	Managing Future Growth	· Developing and maintaining a Growth Management Strategy (GMS) to provide continued residential development and infrastructure ‘ahead of the game’.
2	Economic Development, Retailing, Town Centres and Tourism	· Balance commercial development with cultural and recreation opportunities.
3a	Natural Environment / Agriculture	· Maintain an ‘unspoilt’ environment, plan for infrastructure to manage high use areas, maintain sustainable agriculture sector focusing on diversity and quality of output.
3b	Affordable Housing	· Work to increase affordable housing opportunities in Shoalhaven.
4	Population, Ageing and Social Infrastructure	· Facilitate a healthy, active and accessible community. · Identify and respond to demonstrated need and create best practice liveable communities for all ages and stages.
5	Heritage and Events	· Maintain, investigate and bring forward our Aboriginal and European heritage into the future.
6	Legislation and Policy	· Maintain Shoalhaven Local Environmental Plan (LEP), Development Control Plan (DCP) and Contributions Plan (CP). · Monitor and respond to legislative and policy changes/proposals – consistent with Council’s strategic direction.

For each existing priority area, current and future (‘yet to commence’ or ‘on hold’) projects are again identified. The proposed 2022-2023 SPWP contains a total of 79 projects, made up of 42 current projects and 37 projects that are yet to commence or are on hold.

The priority projects in Table 2 (also shown in red in Attachment 2) will be advanced ahead of other projects on the SPWP. A brief update on the identified priority projects is provided for convenience in Table 2.

Table 2: 2022-2023 SPWP priority projects

Priority Project	Brief Update
Moss Vale Road North URA (PP, DCP and CP)	The draft planning and development control documents guiding the future development of this regionally significant new urban release area have been prepared and were recently on public exhibition until 1 July 2022. Council will receive a post-exhibition report on the DCP and PP shortly. The design and costing of the essential infrastructure to support the future new community is also well underway. The NSW Geographical Names Board exhibited the proposed suburb arrangements (name and boundary) for the two Moss Vale Road Release Areas in June 2022. This represents a significant existing body of work that needs to be finalised as a priority.
Milton-Ulladulla Structure Plan Review	A range of detailed analyses that will form the basis of the update of the Structure Plan is complete. Remaining work to further inform the update of the Plan includes an updated record of development activity, revision of population forecasts with the 2021 census, and the testing of development feasibility. The Strategic Planning Working Party are due to examine Preliminary Growth Opportunities at an upcoming meeting, prior to the matter being formally reported to Council.
Planning Proposal PP028 - Callala Bay and Kinghorne Point (Halloran)	Public exhibition of PP028 and the supporting biodiversity certification application occurred between 14 April and 17 June 2022. Council made a resolved submission on a range of bushfire and biodiversity matters. The NSW Department of Planning & environment (DPE) replaced Council as the Planning Proposal Authority in December 2021 due to its ‘regional and state significance’. Meaning they responsible for exhibiting and finalising the PP. The PP proposes to map the site on the urban release area (URA) map which means Part 6: Urban Release Areas of the Shoalhaven LEP 2014 will apply to the development area. This means Council will be required to prepare a site-specific DCP chapter prior to considering any Development Applications (DAs) for the site. Council is the ‘applicant’ for the biodiversity certification application, which will be determined by the NSW Minister for Environment (or their delegate). Even though DPE is managing the current process, Council staff are still required to be heavily involved as needed in the finalisation of the PP and the subsequent outcomes.
DCP Chapter G11 Subdivision Review	Preparation of the important DCP amendment is well underway. Internal Council consultation has been undertaken and following incorporation of changes resulting from Council’s Engineering Design Specification Review. The draft package will be presented to Council shortly seeking a resolution to exhibit.
Nowra Riverfront Advisory Taskforce	The planning for the Riverfront Precinct is progressing under the oversight of the Nowra Riverfront Advisory Taskforce (NRAT) which was established by the NSW Government in late 2020. Council is currently managing a range of technical studies which NRAT has helped secure funding for. These investigations will inform updates to the Precinct masterplan as well as future changes to Shoalhaven LEP, DCP and Contributions Plan to help facilitate redevelopment and revitalisation within the Precinct. Development scenarios will be developed in the coming 6-12 months. Council staff are undertaking the bulk of the work effort in regard to this process, and it is envisaged that Council will be responsible for the resultant planning scheme amendments.
Coastal Hazard Review	The revised Planning Proposal is now with the DPE for finalisation, which is understood at the time of writing this report to be imminent.
Local Strategic Planning Statement Implementation	Council’s Strategic Planning Working Party considered the impact of a range of changes over the past 18 months on the currency of the current Local Strategic Planning Statement (LSPS). A future relevant change relates to the NSW Government’s establishment of the Greater Cities Commission; the full implications of this are not yet known. The Working Party requested a workshop in coming months to consider adjusting the priority of work set in the current LSPS document.
Illawarra-Shoalhaven Regional Plan (ISRP) Implementation	Council staff are members of the Illawarra-Shoalhaven Coordination and Monitoring Committee, and staff continue to collaborate with DPE’s Regional Plan team on its implementation of the current Plan. The NSW Government’s establishment of the Greater Cities Commission will have an impact in this regard, but the full implications are not yet known.
Affordable Housing Strategy Review	An internal Working Group consisting of Council staff from the Community Connections, Property and Strategic Planning Teams is implementing/reviewing the remaining and ongoing actions. This includes the gathering of data to report on the key performance indicators set in the current Strategy. The Strategy recommends a five-year review to ensure its actions remain relevant and it is *intended* that this review be undertaken in 2022/2023.
Respond to Legislative Change	Ongoing and generally reactionary. However, it is noted that this has taken up significant staff time in the 2021-2022 financial year due to the range of detailed and widespread reforms being advanced by the NSW Government and also resulting from the COVID-19 Pandemic. *Intended Future Direction* – given the work for Council created in this regard and the often quick comment timeframes, it is intended that Council staff will mainly focus on key relevant ones as required.

Over recent months there have been a number of direct requests, including detail or suggested planning detail, from the community for Council to support and progress certain new or additional strategic projects relating to specific areas across Shoalhaven. For example:

· Community Lead Plans or requests (e.g., Bay & Basin Community-Led Strategic Plan) – these plans continue to emerge, and they create strategic land use planning expectations.

· New planning controls - there has been a growing community requests for specific planning controls related to ‘character’ (e.g., coastal villages) and also a broader review of existing strategic planning/planning controls (e.g., Jervis Bay region).

· The Halloran Trust has made an offer of funding for improvements to the Culburra Beach Village Centre at a strategic planning level (review to improve the current DCP Chapter for the Centre).

· The Berry Forum has requested or proposed the following and has provided considerable detail in this regard:

- New Development Control Plan (DCP) chapter for the parts of Berry east of the Highway. The forum provided a suggested draft chapter and supporting documents for consideration in this regard.

- An additional Heritage Conservation Area (HCA) between the existing Queen Street HCA and Berry Showground HCA.

- LEP amendment seeking to control tourist and visitor accommodation in the Berry and Kangaroo Valley areas.

Community requests need to be carefully considered, particularly in relation to precedent, integrity and balance within Shoalhaven’s existing planning instruments and policy documents. The Council capacity and practical implications also need to be duly considered.

Commentary on each proposal mentioned above is provided in Table 3 for Council’s consideration.

Table 3: Projects Suggested by Community for SPWP

Proposal	Staff Comment
Community Lead Plans/ requests	There is a growing number of these types of plans. Depending on the nature of the plans they can often create expectations across the Council. A such there is a need to consider how plans of this nature are managed or supported within and by Council. Any land use planning related projects arising from them also need to be considered as part of the SPWP.
New planning controls – Community Requests	There continues to be a growing call for specific planning controls related to specific localities, areas or issues. These often come through CCB’s or other groups and can be specific or general in nature. Again, there is a need to consider these wholistically on their merits and within the context of the SPWP.
Improvements to the Culburra Beach Village Centre (DCP review)	This is a generous offer that will directly benefit the community in the immediate area through a timelier review of the relevant DCP Chapter. It is suggested that these funds be allocated to the review of Chapter N14: Culburra Beach Village Centre in the DCP. As such, the project has been added to Priority 2 in the proposed 2022/2023 Works Program for Council’s consideration. The project is identified as ‘on hold’, subject to the release of the funds to commence the project. It is also noted that as much of the work as possible will need to be outsourced so as not to impact on other Council commitments.
New Development Control Plan (DCP) chapter for parts of Berry east of the Highway (draft version provided).	If formalised, this would be the third DCP chapter for the Berry area. It is also likely to be a catalyst for other towns and villages to also prepare/request their own new DCP chapters or DCP amendments for their respective areas. Further, a number of the matters raised in the proposed DCP could be considered through a review of existing citywide provisions (i.e., a lot of the matters raised are not specifically unique to Berry). DCP preparation is time and resource intensive, particularly given the need to engage as fully as possible with affected owners and others, and Strategic Planning Team does not currently have the capacity to manage and progress this work (or similar future requests from other areas) in light of the other existing projects and priorities currently on the SPWP.
New Heritage Conservation Area (HCA) between the existing Queen Street HCA and Berry Showground HCA	The additional HCA at this stage appears to have some merit based on a high level assessment and could be relatively straightforward. There would be value in investigating the conservation area potential further and as such, the project has been added to Priority 5 in the proposed 2022/2023 Works Program for Council’s consideration. The project has however been added as ‘on hold’ until resourcing and capacity improves.
LEP amendment relating to tourist and visitor accommodation in the Berry and Kangaroo Valley areas	On 7 April 2020, Council considered a report on possible opportunities to amend the LEP relating to tourist and visitor accommodation (T&VA). Council resolved (MIN20.252) that the report be received for information (i.e., no changes to be made to the LEP relating to T&VA). A review of existing DCP Chapter G15 relating to T&VA was endorsed on 5 March 2019 (MIN19.113). This work is ongoing and is detailed in Priority 2 of the SPWP. On 28 March 2022, Council also resolved (MIN22.200) to receive further reports on how the NSW Government’s agritourism optional clauses and emerging land uses could be considered in a Shoalhaven specific way in the LEP. This is also being considered as part of the Chapter G15 review. It is considered that any changes to the LEP in response to the Berry Forum’s request should first be considered/investigated at a citywide scale, so that any planning response to help manage tourism is wholistic in nature. Whilst not currently on the SPWP, this work could be considered in the future as part of the broader Chapter G15 work (i.e., consider in conjunction with the agritourism work), however Strategic Planning Team does not currently have the capacity to manage and progress this work at this stage in light of the other projects and priorities on the SPWP.

Table 4 identifies the projects that have been removed (completions etc.) from or added (Council resolutions etc.) to the SPWP, as well as projects that have been consolidated or reprioritised. Changes have also been made to the descriptions of some of the projects to enhance readability and recognition.

Table 4: Projects added and removed from the 2022-2023 SPWP

1. Managing Future Growth
Added	· PP058 – 2022 Housekeeping Amendment (citywide minor mapping and instrument changes to Shoalhaven LEP 2014). · PP059 – 2023 Housekeeping Amendment (citywide minor mapping and instrument changes to Shoalhaven LEP 2014). · PP061 – Beach Road, Berry. · Shoalhaven DCP 2014 – Medium Density Review Investigations. · Fisherman’s Paradise VPA. · Kent Lane, Huskisson WIKA. · Hillcrest Avenue, South Nowra WIKA. · Old Southern Road, South Nowra WIKA (Stage 2). · St Georges Basin Internal Service Road WIKA. · Bomaderry Stockyards VPA (added to ‘on hold’). · Character investigations – Manyana/Red Head Villages (MIN22.370). Added to ‘current’ - subject to resourcing and clarification.
Removed (and why)	· PP029 – Hitchcocks Lane, Berry (+ DCP amendment). *Completed.* · PP035 - Jervis Bay Road, Falls Creek. *Completed.* · PP054 – Taylors Lane, Cambewarra adjustment (+DCP and CP). *Completed.* · PP060 – Huntingdale Park Estate, Berry. *Completed.* · PP007 - Inyadda Drive, Manyana. *Discontinued by Applicant.* · Old Southern Road, South Nowra WIKA (Stage 1). *Executed.* · Moss Vale Road South URA WIKA (Stage 1). Executed. · Shoalhaven Contributions Plan (CP) 2019: Huntingdale Park Reserve – Amendment to CP project 01OREC0009. *Completed.* · Deed of variation to existing Bishop Drive, Mollymook Voluntary Planning Agreement. *Completed.* · PP045 – Callala Bay – Sealark Road. *Gateway terminated. Council resolved on 27 June 2022 to not seek a new one.*
Current Projects Placed on Hold	· Review of Old Southern Road, South Nowra Contributions Project 01ROAD2038 (+ DCP). *Pending outcome of development application for Twin Nowra Estate.*
On Hold Projects Moved to Current	· LP145.1 - Nebraska Estate, St Georges Basin (+ DCP).

2. Economic Development, Retailing, Town Centres and Tourism
Added	· Nowra Riverfront Advisory Taskforce (Priority). *Consolidated the following priority projects on the SPWP:* - *PP041 – Shoalhaven Riverfront - Mandalay Avenue Sub Precinct (and DCP).* - *PP042 – Shoalhaven Riverfront - Hyam Street, Pleasant Way and Wharf Road Sub Precinct (and DCP).* · PP064 - Bawley Point - Willinga Park Equestrian Centre. · Citywide Economic Review (added to ‘on hold’). · Shoalhaven DCP 2014 – Chapter N5: Bomaderry Town Centre review (added to ‘on hold’). · Shoalhaven DCP 2014 – Chapter N14: Culburra Beach Village Centre review (added to ‘on hold’). If supported, project to be funded by Halloran Trust and commence when funds are made available. · Processing of Covid 19 Contributions Discount Subsidy Applications.
Removed (and why)	· Retail Strategy. Consider via the Citywide Economic Review. · Employment Lands Strategy. *Consider via the Citywide Economic Review.*
Current Projects Placed on Hold (and why)	· Nowra CBD Planning Controls Review (Priority Project). *Resourcing constraints.* · Shoalhaven DCP 2014 - Chapter S8: Ulladulla Town Centre Review. *Will recommence on completion of the MUSP.* · Shoalhaven DCP 2014 - Chapter N18: Huskisson Town Centre (Service Lane Review) (+CP). *Resourcing constraints.* · Nowra CBD Discount Subsidy Policy Review. *Policy recommended for rescission at the 18 July 2022 Council meeting. Direction dependent on outcome of meeting.*
On Hold Projects Moved to Current	· South Nowra Industrial Zoned Area (Flinders Estate Expansion) (DCP and CP). Progressing the detailed planning work under the oversight of an internal Council Project Control Group.
3a. Natural Environment/ Agriculture
Added	· Shoalhaven DCP 2014 - 45 degree rule and APZ clearing review (Council resolutions). · Shoalhaven DCP 2014 – Environmental Related Chapter review - Chapters G4, G5, G8, G9, G10 (added to ‘on hold’).
Removed (and why)	· Shoalhaven DCP 2014 - Solar Roof Panel Amendment. *Completed.* · ‘Heritage Estates’, Worrowing Heights (land/water degradation and land tenure). *Erosion control project completed. Tenure resolution now with NSW NPWS.*
3b. Affordable Housing
Added	· Continued advocacy, including NSW Housing Portfolio renewal and redevelopment.
Removed (and why)	· Implementation and monitoring of the adopted Shoalhaven Affordable Housing Strategy (Priority Project). Review of the Affordable Housing Strategy has commenced. · Affordable Housing Project, Coomea Street, Bomaderry – Implementation. *Development Application for the affordable housing project* *being finalised. Strategic Planning Staff still involved in project oversight.*
On hold projects moved to current	· ‘Interim (5-year review) of Affordable Housing Strategy (includes consideration of student accommodation and dual occupancy provisions)’ is now ‘Affordable Housing Strategy Review’. Remains a priority project.
Change in scope of existing on hold projects	· ‘Reconsider position on short term rental accommodation following release of the Government’s final position’ is now ‘Short term rental accommodation planning options’. Remains a standard priority project.
4. Population, Ageing and Social Infrastructure
Added	· Input into Shoalhaven Community Infrastructure Strategic Plan review (added to ‘on hold’).
Removed (and why)	· Population Policy. *Policy not viable at present considering NSW Government framework and Shoalhaven’s incorporation in ‘Six Cities’.* · Shoalhaven DCP 2014: - Consider accessibility requirements throughout the DCP, or a separate chapter (MIN18.1009). *This is a separation action in the Disability Inclusion Action Plan.* - Include appropriate references to Disability Discrimination Act. *This is a separation action in the Disability Inclusion Action Plan.* · Nowra Medical Precinct Masterplan. *Overtaken by the NSW Government’s Shoalhaven Hospital Masterplan.* · Illawarra Age Friendly Alliance work. *The Alliance is no longer active.* · Labour force review. *There have been significant changes in the market and the underlying research is no longer contemporary.*
Current Projects Placed on Hold (and why)	· Undertake an assessment of the City’s ageing demographic. *Resourcing constraints.*
5. Heritage and Events
Added	· Investigate new Berry Heritage Conservation Area (added to ‘on hold’). · Shoalhaven LGA Aboriginal Cultural Heritage Mapping (landscape) and associated protocol or ‘tool kit’. · Nowra Hill and Surrounds - Former torpedo workshop/bunkers and associated defence history items (added to ‘on hold’). Note: The heritage listing of 50 BTU Road, Nowra Hill is being progressed through PP059, the memorial is being progressed by Council’s Community Connections section and the heritage review of critical infrastructure items cannot progress until grant funding is available.
Removed (and why)	· PP056 - Berry Heritage Investigations. *Completed.* · Managing response to Aboriginal Land Claims. *Process now managed by Council’s Property Unit.*
On Hold Projects Moved to Current	· Review heritage strategy: Consideration of Aboriginal Cultural Heritage. *Being considered via Council’s Policy reaffirmation process.*
6. Legislation and Policy
Added	· Shoalhaven DCP 2014 - Chapter G21 Car Parking and Traffic (parking space dimensions) (added to ‘on hold’, however may be addressed as part of the ‘Shoalhaven DCP 2014 - Medium Density Review’ project, depending on the outcome of the review).
Removed (and why)	· PP040 - 2018 Housekeeping. Completed. · PP044 – 2020-2021 Housekeeping. *Completed.* · Shoalhaven DCP 2014 - Chapter G21 Car Parking and Traffic. *Completed.* · Shoalhaven CP 2019 - Amendment 8 – Old Subdivision Properties. *Completed.* · Shoalhaven CP 2019 - Review of Contributions Project 01ROAD2038 (Old Southern Road upgrade (For 1km south from Quinns Lane)). *Duplication of project in Priority 1.* · Respond to the NSW Government’s update of the Illawarra Shoalhaven Regional Plan. *New Regional Plan now in place.* · Shoalhaven CP 2019 - Amendment 3 (Housekeeping). *Reconsider Project once the outcomes of the NSW Government’s Infrastructure Contributions Reforms are known, and as part of a broader review.*
Current Projects Placed on Hold (and why)	· Shoalhaven DCP 2014: Amendment 10 – Various/Area Specific Chapter Review. *Resourcing constraints.* · Section10.7 (formerly Section 149) Certificated, Policy Note Review. *Resourcing constraints.*

Process for adding/removing projects from the 2022-2023 SPWP

The 2022-2023 SPWP will assist with Council’s decision making regarding new planning related projects. Ideally, the 2022-2023 SPWP will be proactive and not reactionary. It is inevitable, however, that changes will be required through time and this needs to be done in a considered manner.

Prior to changing the 2022-2023 SPWP (e.g., adding a project), consideration should be given to the likely impact on the current program, priorities, Council capacity and available resources. Projects should only be included on the 2022-2023 SPWP (or reprioritised) after consideration by Council and following a formal resolution. Ideally, consideration should be given to how they sit against the overarching strategies identified in the SPWP. The exception would be matters that must be resolved operationally (legislative directions, reactive policy submissions etc.).

Council’s Strategic Planning Working Party also now has a key role in the SPWP process, specifically through the provision of early input into projects within the SPWP, focusing on ‘priority’ projects and other projects that may require ongoing consideration and direction.

It is expected that projects will be removed from the SPWP upon completion or via a resolution of Council.

Monitoring and reporting

The SPWP will continue to be reported back to Council annually in June/July, in line with each new financial year, to enable formal reconsideration and to highlight progress, including what has been achieved or completed in the year. The SPWP will also be monitored for efficiency on an ongoing basis and any required or proposed changes to the structure or projects will be reported as needed.

Community Engagement

The SPWP is essentially an internal tool to manage Council’s strategic planning effort and workflow. No formal community consultation is required as it is an internal management resource.

Based on existing knowledge, plans and community engagement processes (especially the Community Strategic Plan/Integrated Strategic Plan and associated Local Strategic Planning Statement processes) the broader expectations of the community have been considered during preparation of the SPWP.

However, approaches continue to be receive requesting specific additional work in regard to issues or areas, for example character controls for villages or the need for new land use planning strategy.

Policy Implications

Having a clear work program to focus Council’s current and future strategic planning effort is important and working with existing resources ensures that Council has an appropriate strategic framework in place that is forward thinking and responsive in nature.

Following receipt of a range of feedback from the Shoalhaven community about the need for new and contemporary strategic land use plans and planning scheme (LEP, DCP etc) for the City, it is considered timely for Council to consider taking a ‘fresh eyes’ look at its land use planning strategy and scheme. This report recommends that a workshop be scheduled to discuss opportunities in this regard, and how this could be pursued, including the potential of an adjusted or new SPWP in response.

Financial/ Resourcing Implications

Generally, projects that are on the SPWP will be undertaken within existing budgets. However, should a project require specific funding allocation, this will be reported to Council for consideration as the need arises.

Council has limited capacity to deliver projects on the SPWP. It is thus proposed that a number of projects be placed on hold capacity can be increased.

Should Council ultimately commit to the preparation of new and contemporary strategic land use plans and a planning scheme (LEP, DCP etc) for Shoalhaven then this will need to be appropriately resourced.

Ordinary Meeting – Monday 25 July 2022

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CL22.173 Further Report - Post Exhibition and Finalisation – Shoalhaven DCP 2014 Amendment No. 39 – Coastal Amendment

HPERM Ref: D22/97336

Department: Strategic Planning

Approver: Carey McIntyre, Director - City Futures

Attachments: 1. Coastal Amendment to Shoalhaven DCP 2014 - External Consultation Submission Summary ⇩

This item was deferred from the 11 April 2022 Council Meeting.

Reason for Report

The reason for this report is to detail the submissions received on the exhibited draft Coastal Amendment to the following chapters of Shoalhaven Development Control Plan (DCP) 2014:

- Chapter N12: Culburra Beach – The Marina Area

- Chapter G6: Coastal Management Areas

- Chapter V2: Building Line

A further reason is to enable the finalisation of the Coastal Amendment to the DCP.

Recommendation

That Council:

1. Adopt the Coastal Amendment No. 39 to Shoalhaven Development Control Plan 2014 (SDCP2014.39) as exhibited, with a minor typographical change to Acceptable Solutions A1.13 to A1.15 in Chapter G6 - Coastal Management Areas, to change these provisions to dot points as per the original intent.

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

3. Rescind POL20/21: Interim Policy – Chapter N12: Culburra Beach, The Marina Area Building Setbacks, Vegetation Buffers and Building Lines, following the adoption and finalisation of the Coastal Amendment.

4. Advise key stakeholders, including relevant industry representatives and those who made a submission, of this decision and when the Amendment will be made effective.

Options

1. As recommended.

Implications: This is the preferred as it will ensure the amendments to Shoalhaven DCP 2014 proceed to finalisation. This will implement the intention of an earlier Council resolution (MIN19.465) and ensure the Chapters are updated and streamlined, which will assist in the preparation and assessment of development applications.

2. Adopt an alternative recommendation.

Implications: This will depend on the extent of any changes or requested and could delay the implementation of updated and improved DCP provisions.

3. Not adopt the recommendation.

Implications: This is not recommended and could stop the implementation of more appropriate, best practice and better structured provisions in the above-mentioned chapters, that will improve their function and useability.

Background

The content of DCP Chapter N12 was originally transferred from former DCP No.48 – Culburra Beach as part of the 2014 Citywide DCP process. Former DCP No.48 was first adopted in the early 1990s and there have been no amendments to the Chapter since DCP 2014 became effective in 2014.

In 2019, Council resolved (MIN19.465) to endorse the preparation of an amendment to Chapter N12. As part of the preparation, an independent study was undertaken by an environmental consultant to provide contemporary rigor regarding dune vegetation. During the review of Chapter N12, necessary amendments to Chapter G6 and Chapter V2 were additionally identified to improve the overall operations of the Chapters.

Following consideration of the draft Coastal Amendment, Council resolved (MIN21.694) on 5 October 2021 to:

1. Endorse and proceed to exhibit the draft Amendment to the following chapters of Shoalhaven Development Control Plan 2014 as outlined in Attachment 1, for a period of at least 28 days as per legislative requirements:

a. Chapter N12: Culburra Beach – The Marina Area

b. Chapter G6: Coastal Management Areas.

c. Chapter V2: Building Lines.

2. Receive a further report on the draft Amendment following the conclusion of the public exhibition period to consider feedback received and enable finalisation of the Amendment.

3. Extend the review date of POL20/21 ‘DCP Chapter N12: Culburra Beach, The Marina Area – Interim Policy,’ to 2 July 2022, noting it will be rescinded following the adoption and finalisation of the draft Amendment.

4. Notify the following key stakeholders (including CCBs and Development Industry Representatives) of the exhibition arrangements in due course:

a. Development Industry Representatives and CCBs.

b. All affected landowners of Chapter N12: Culburra Beach – The Marina Area.

c. The landowners directly affected by the deletion or substantial amendment to a Chapter V2 Supporting Map.

The draft Coastal Amendment is considered to be predominantly administrative in nature and is intended to ensure the Chapters are updated and streamlined to assist in the preparation and assessment of future development applications. The draft Coastal Amendment is consistent with Council’s housekeeping approach to amend DCP Chapters, ensure Chapters are effective planning tools and operate in an efficient manner. It is not introducing any new overly onerous provisions.

Council resolved on 11 April 2022 (MIN22.242):

That this matter be deferred to a Councillor Briefing for consideration of information and reported back to Council.

The briefing was scheduled for 12 May 2022, but due to time constraints did not occur as planned. The briefing slides were provided to Councillors for their information/consideration and some feedback was received regarding vegetation planting and views. This general issue is discussed below in the commentary on the submissions received.

Public Exhibition

The Amendments package was publicly exhibited for a period of 30 days from 17 November to 17 December 2021 (inclusive) on Council’s website.

All directly affected landowners, as well as Community Consultative Bodies (CCB’s) and relevant development industry representatives were notified directly in writing prior to the commencement of the exhibition.

The exhibition documentation for the amendment included the following:

· Exhibition Notice

· Explanatory Statement

· Draft Chapters and Supporting Maps:

- Chapter N12: Culburra Beach – The Marina Area

- Supporting Maps: Culburra Beach – The Marina Area

- Chapter G6: Coastal Management Areas

- Chapter V2: Building Lines

- Supporting Maps: Building Lines

Prior to the conclusion of the public exhibition period, a number of landowners requested an extension of time to comment. An initial extension was granted to Monday 24 January 2022, which was subsequently further extended until close of business Friday 7 February 2022. As a result of the extended exhibition, twenty-five (25) written submissions were received, including:

· Nine (9) submissions from the community.

· 15 form letters from the community, including:

- 12 x main form letter.

- One (1) variation of the main form letter, and

- Two (2) submissions of an additional form letter.

· One (1) submission from the Callala Foreshore Alliance, enclosing an adaptation of the original Form Letter.

The majority of the submissions received raised and discussed matters that did not relate directly to the draft Coastal Amendment. Attachment 1 provides a detailed summary of the submissions received and Council staff comments. Copies of the actual submissions can be provided to Councillors prior to the meeting if required.

The Deputation received at Council’s 11 April 2022 Ordinary meeting, relating to 103 The Marina, Culburra Beach, was generally supportive of the proposed amendment, with the exception of the proposed relocation of The Marina, Culburra Beach building lines to Chapter V2. The landowner noted that various development on adjacent and surrounding land had been constructed seaward of the prescribed building lines. In this regard, it is noted that landowners are able to submit a request for a variation to the building line as part of any future development application on the land, for Council’s consideration; provided that the request (not exclusively) is consistent with surrounding development, maintains existing amenity and does not detrimentally impact the view from the public domain. This approach is consistent with the existing provisions in Chapter G12: Dwelling Houses and Other Low Density Development of the DCP.

It is noted that whilst no submissions raised concerns regarding associated bushfire risk and impacts on private views as a result of the proposed requirement for the revegetation of the 2019 Dune Vegetation Zone, this was raised as a matter of concern post Councillor briefing by a Councillor. To assist in clarifying the intent of the proposal, the relevant acceptable solution refers readers to Section 5.3.2 of Chapter G6 in determining the species that are to be planted or retained within the 2019 Dune Vegetation Zone. In this regard, the primary (plant first) species recommended for planting or replanting of sand dunes are generally classified as low-lying shrubs and bushes. Landowners have the choice of what species they revegetate with and can choose between low-lying shrubs with a maximum height of approximately 40cm to larger bushes of 1.5m in height. Additionally, Chapter N12 recommends landowners to carefully select plants to meet both the bushfire requirements for Asset Protection Zones and the purpose of the 2019 Dune Vegetation Zone. The preference remains that this land is to be restored to a natural state (as far as practicable) to promote dune stabilisation.

Interim Policy Position

Following the transfer of content from former DCP No.48 to Chapter N12, Council adopted POL20/21: Interim Policy – Chapter N12: Culburra Beach, The Marina Area Building Setbacks, Vegetation Buffers and Building Lines as its interim policy position for the relevant ‘lines.’ In response to the environmental consultant’s independent study, the building lines along The Marina have been transferred to DCP Chapter V2 Building Lines, and the 2019 Dune Vegetation Zone has been included in Chapter N12. These ‘lines’ remain Council’s strategic intent for the subject land and have been rigorously applied throughout the area to date. Following the finalisation and adoption of the Coastal Amendment to the DCP, the Interim Policy can be rescinded.

Conclusion

No content changes to the draft Chapters are recommended as a result of the public exhibition period, at this point in time. The formatting error in the exhibition version of draft Chapter G6 will be rectified in the finalisation version of the chapter.

The draft Chapters can now be finalised, and the resulting Shoalhaven DCP 2014 (DCP2014.39) amendment can proceed to finalisation. The existing POL20/21 can then be rescinded.

Community Engagement

The Draft Coastal Amendment to the DCP was publicly exhibited for 30 days in accordance with legislative requirements. Twenty-five (25) submissions were received, which are summarised at Attachment 1.

It is noted that the Coastal DCP Amendment was exhibited concurrently with Planning Proposal PP026 - Coastal Hazards Review (revised approach). A number of submissions were received that referenced the draft Coastal Amendment to the DCP in the subject line, however, the content of the submission pertained solely to PP026. These submissions were considered in the separate 26 April 2022 report for the planning proposal, and for the purpose of this report, have not been counted.

By way of an update on the planning proposal, Council resolved (MIN22.276) on 26 April 2022 to proceed to finalise the planning proposal and proceed to make the amendment to Shoalhaven LEP 2014. The finalisation of the Plan is now immanent.

Policy Implications

The Draft Coastal Amendment to the DCP seeks to address operational issues, gaps in policy or matters that need clarification that have been identified since the chapters became effective on 22 October 2014. Importantly, the Amendment seeks to crystallise Council’s building lines, and the 2019 Dune Vegetation Zone along The Marina in the Culburra Beach Area.

It is intended that POL20/21 will be rescinded following the adoption and finalisation of the Coastal Amendment to Shoalhaven DCP 2014.

Financial Implications

The finalisation of the Coastal Amendment will continue to be resourced from the Strategic Planning budget.

Ordinary Meeting – Monday 25 July 2022

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CL22.304 Proposed Works in Kind Agreement - Road Infrastructure Construction - Ballina Street and Commercial Road, South Nowra

HPERM Ref: D22/252241

Department: Strategic Planning

Approver: Carey McIntyre, Director - City Futures

Reason for Report

The reason for this report is to obtain in-principle support to commence the process of entering into a Works in Kind Agreement (WIKA) with the owner/developer of the subject land for the construction of road infrastructure required under the Shoalhaven Contributions Plan 2019.

The works are associated with a development consent (DA18/1588) for Commercial Premises and Warehouse or Distribution Centre.

Recommendation

That Council:

1. Provide in-principle support to finalise negotiations and enter into a Works in Kind Agreement (WIKA) with the owner/developer of Lot 162 in DP1211301 for the construction of road infrastructure, as outlined in this report, except where further negotiations result in substantial changes to the proposal, in which case Council will receive a further report prior to proceeding.

2. Delegate authority to Council’s Chief Executive Officer, or his delegate, to prepare and enter into the WIKA following final negotiations.

3. Endorse the allocation of deleted funds from Planning Area 1 to cover any shortfall in available funds that may occur relating to the construction of the road infrastructure, following the procurement of independent costings. If there is not enough in the Planning Area 1 deleted funds budget to cover any shortfall, the remaining shortfall is to be covered by the developer upfront and reimbursed back to the developer as contributions are received over time for 01ROAD3104, to the value of the difference.

4. Review the long-term viability of the 01ROAD3104 and 01ROAD3105 road project in due course, and the matter be reported back to Council as appropriate.

5. Notify the owner/developer of this resolution.

Options

1. As recommended.

Implications: The proposed WIKA will result in a positive public benefit through the construction of part of the road infrastructure earmarked in the Shoalhaven Contributions (CP) Plan 2019. The approved development (DA18/1588) will help stimulate ongoing economic growth and the progression of this agreement will help facilitate this development.

This option will minimise delays to the development by enabling the agreement to be finalised under delegation (including design and costings), subject to no resulting major changes.

2. As recommended, with no allocation of deleted funds to cover the shortfall.

Implications: This option will still enable the agreement to progress, however the cost burden relating to the likely shortfall from the construction of the infrastructure will be borne by the developer and reimbursement will occur only when contributions are received over time. The use of deleted funds to cover the shortfall as far as possible is preferable and is consistent with Council’s general resolution of 2 April 2019 (MIN19.212(4)) relating to the use of deleted funds.

3. Provide in-principle support to conclude the negotiations and report back to Council for endorsement to enter into the agreement prior to proceeding.

Implications: This option will still enable Council staff to finalise negotiations with the developer, including procuring detailed costings (based on detailed designs) prior to reporting back to Council. This approach will likely result in delays to the development which is not a good overall outcome.

Background

Development consent (DA18/1588) was granted for the development of a Commercial Premises and Warehouse or Distribution Centre over Lot 162 DP 1211301 at 12 Ballina St, South Nowra (Figure 1, coloured in yellow) on 24 September 2019.

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Description automatically generated

Figure 1: The subject land - Lot 162 DP 1211301 in yellow

The Shoalhaven CP (Contributions Project 01ROAD3104) identifies the provision of an internal service road to provide improved, efficient and safe public road networks for increasing traffic volumes associated with development demand.

Figure 2 shows the new access road (in red) and the contribution project benefiting area (in blue - properties who contribute to the project) as per the CP.

Diagram, engineering drawing

Description automatically generated

Figure 2: 01ROAD3104 Project

The Proposal

Early negotiations revolved around a potential Planning Agreement (VPA) between Council, the owner of Lot 162 DP 1211301 and the owner of adjacent land to the south (Lot B DP 400054) for construction of Ballina Street and Commercial Road and dedication of land on Lot B. A letter of offer was received from the applicant which reflected this earlier proposal.

As negotiations progressed it became clear that a more appropriate approach would be to explore a WIKA in relation to partial construction of Ballina Street and Commercial Road by the owner/developer of Lot 162 DP 1211301 (the subject of this report) and separately consider other options, such as a possible VPA, with the owner/developer of Lot B DP 400054 for road construction and dedication of land as part of any forthcoming development application.

Accordingly, the owner of Lot 162 DP 1211301 has commenced preparation of a draft WIKA which is currently being reviewed by Council.

The current proposal is for the construction of part of Ballina Street and Commercial Road, South Nowra, including bitumen road base, kerb and guttering, and associated stormwater drainage infrastructure. The proposal is based on discussions to date between the parties and the details depicted in the engineering plans provided by the applicant which are awaiting detailed review by Council engineers. Council staff delegation is requested to continue to negotiate the particulars of the agreement, including the procurement of costings at the appropriate point. The developer seeks to apply for a Construction Certificate as soon as practicable.

The land that would be subject to the proposed road construction has already been dedicated as public road, so no dedication or acquisition of land is required.

Figure 3 shows the proposed Road Layout Plan which is awaiting consideration/approval by Council engineers and therefore may be subject to change.

Figure 3: Proposed Road Layout Plan (Source: Jones Nicholson (JN), December 2020)

Delegation Opportunities

In accordance with Council’s existing Works In Kind Policy, Council may resolve to delegate authority to Council’s Chief Executive Officer, or his delegate, to negotiate, publicly notify, enter into and register the agreement (as relevant).

The proposed agreement has some final negotiation yet to occur (including final approved construction drawings and detailed costings), however the proposal is supported ‘in principle’ and these matters can be resolved and progressed in time. As such, it is recommended that Council extend delegation for the above functions, unless further negotiations result in substantial changes to the proposal, in which case Council will receive a further report prior to finalisation.

Conclusion

Due to the public benefit realised from the ultimate construction of the road infrastructure, it is in Council’s interest to support the proposal as recommended, finalise negotiations and proceed to finalise the WIKA.

Community Engagement

No community engagement is required for a WIKA.

Financial Implications

Options to Address the Funding Shortfall for the Construction of South Nowra - Road Infrastructure

As independent costings have not yet been obtained for this proposal, it is unclear if there will be a shortfall between the developer’s Section 7.11 obligations for CP project 01ROAD3104 ($85,626.25, not indexed) as per Consent for DA18/1588, and the infrastructure construction costs, however this is likely to be the case.

In accordance with Council’s Works In Kind Policy, if the value of the works undertaken (i.e. agreed construction costs) is less than the development contributions required in the consent, the developer will need to pay the difference to Council.

If there is a shortfall, a funding source will need to be identified accordingly.

As there are currently minimal contributions funds available for 01ROAD3104, it is preferable that any remaining shortfall be covered by recently received deleted funds. In this regard, on 2 April 2019, Council resolved (MIN19.212(4)) to:

Endorse the position that all funds from deleted projects are to remain within each relevant planning area and be transferred to a “recoupment fund”, with those funds used as Council's apportionment towards projects and to provide seed funding for community infrastructure projects identified in the revised contributions plan.

This project is an excellent candidate for the use of deleted funds and this option is preferred. If a shortfall remains, this shortfall could be covered by the developer upfront. The agreement could be drafted so that regular claims can be made for any contributions received over time for 01ROAD3104 to the value of the difference (i.e., a reimbursement mechanism).

Alternatively, the entire shortfall (if any) could be covered by the developer upfront. Whilst this is certainly a viable option, it is not preferred as deleted funds have been set aside by Council specifically to seed fund infrastructure delivery in circumstances like this.

Costs associated with the drafting and entering into the WIKA

In accordance with Council’s Works In Kind Policy, the developer will cover Council’s costs (direct and incidental) relating to the negotiation, preparation and entering into the agreement (including associated legal costs) and enforcing the agreement.

Policy Implications

Following the construction of the infrastructure envisaged in the proposed WIKA, changes to the current CP project 01ROAD3104 may be required.

However, on 14 August 2018, Council resolved (MIN18.608) to undertake the following relating to the broader South Nowra Internal Service Lane project:

1. Endorse the proposed draft road alignment and staging of the South Nowra Internal Service Road as identified in the concept drawings and costing (Attachments 3-4 to the report).

2. Commence the review of the Contributions Plan projects that relate to the subject land – 01ROAD3104 and 01ROAD3105.

3. Commence the preparation of development control plan provisions for the subject land addressing:

a. Onsite stormwater detention measures.

b. Building setbacks and landscaping.

c. Reduce vehicle access and egress to the Princes Highway.

d. Any other issues that may be identified during preparation.

4. Prepare a further report seeking a resolution to publicly exhibit the draft development control plan provisions and Contributions Plan amendment.

5. Advise the owners of the subject land, adjacent land owners and relevant community groups of this decision, noting the opportunity for formal consultation later in the process.

The resolved work is currently on hold due to resourcing constraints. At this stage, there is merit in considering the long-term viability of the road and associated drainage contribution projects following recent design investigations undertaken by Council.

Any proposed changes to these CP projects (or the Shoalhaven Development Control Plan 2014) would be reported separately, at the appropriate point in time.

Ordinary Meeting – Monday 25 July 2022

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CL22.305 Proposed Works in Kind Agreement - Construction of Road and Drainage Infrastructure - East Crescent, Culburra Beach

HPERM Ref: D22/265808

Department: Strategic Planning

Approver: Carey McIntyre, Director - City Futures

Reason for Report

The reason for this report is to obtain in-principle support to commence the process of entering into a Works in Kind Agreement (WIKA) with the owner/developers of the subject land for the construction of road and drainage infrastructure required under the Shoalhaven Contributions Plan 2019. The works are associated with an approved medium density residential development.

Recommendation

That Council:

1. Provide in-principle support to finalise negotiations and enter into a Works in Kind Agreement (WIKA) with the owner/developers of Lot 327 DP 11892; 14 East Crescent, Culburra Beach, for the construction of road and drainage infrastructure, as outlined in this report, except where further negotiations result in substantial changes to the proposal, in which case Council will receive a further report prior to proceeding.

2. Delegate authority to Council’s Chief Executive Officer, or his delegate, to prepare and enter into the WIKA following final negotiations.

3. Endorse the allocation of 02ROAD0011 collected funds and deleted funds from Planning Area 2, if needed, to cover any shortfall in available funds that may occur following the procurement of independent costings. If there is not enough in the collected or Planning Area 2 deleted funds budget to cover any shortfall, the remaining shortfall is to be covered by the developer upfront and reimbursed back to the developer as contributions are received over time for 02ROAD0011, to the value of the difference.

4. Notify the owner/developer of this resolution.

Options

1. As recommended.

Implications: The proposed WIKA will result in a positive public benefit through the construction of part of the East Crescent Road and drainage infrastructure earmarked in the Shoalhaven Contributions (CP) Plan 2019. The approved medium density development (DA21/1028) will bring additional housing supply into the area, and the progression of this agreement will help facilitate this development.

This option will allow the agreement to be finalised under delegation, subject to no major changes resulting from the costings.

2. As recommended, with no allocation of funds to cover the shortfall.

Implications: This option will still enable the agreement to progress, however the cost burden relating to the shortfall from the construction of the infrastructure (if any) will be borne by the developer and reimbursement will occur only when contributions are received over time. The use of deleted funds to cover the shortfall as far as possible is preferable, beyond Section 7.11 funds collected to date, and this is also consistent with Council’s general resolution of 2 April 2019 (MIN19.212(4)) relating to the use of deleted funds.

3. Provide ‘in-principle’ support to conclude the negotiations and report back to Council for endorsement to enter into the agreement prior to proceeding.

Implications: This option will still enable Council staff to finalise negotiations with the developer, including procuring detailed costings (based on the already accepted detailed designs) prior to reporting back to Council. This will provide greater up-front certainty for all parties; however, this will likely result in further delays to the delivery of the development which is not a good overall outcome.

4. Adopt an alternative recommendation.

Implications: This may affect the timely delivery of the dwellings and/or the nature and quality of the works provided.

Background and Proposal

Development consent (DA21/1028) was granted for the construction of six multi dwelling housing units and related subdivision at 14 East Crescent, Culburra Beach (Figure 1) on 15 November 2021.

An aerial view of a city

Description automatically generated with medium confidence

Figure 1: The subject land, in yellow

The Shoalhaven Contributions Plan (CP) 2019 (Contributions Project 02ROAD0011) includes the intended upgrade and sealing of parts of East and West Crescents at Culburra Beach. Figure 2 shows the intended new road infrastructure (in red) and the contribution project benefiting area (in blue - those who contribute to the project) as per the CP. Relevant development in the benefiting area for project 02ROAD0011, including 14 East Crescent, is required to pay development (Section 7.11) contributions towards this upgrade work.

The WIKA proposal covered in this report is for the construction of part of East Crescent, adjacent to 14 East Crescent, as well as associated drainage, as shown in Figure 3. The proposal is based on the plans approved by Council for the civil construction works in the road reserve and discussions to date between the parties. The proposed road works are considered reasonable and consistent with the intent of the CP project.

It is noted that the proposal is for the full width construction of East Crescent, despite half width being constructed immediately to the south. Continued half width construction is not a good outcome and is inconsistent with the CP. Council will be required in the future to augment the half width part of the road to the south at a point in time.

Chart

Description automatically generated with medium confidence Diagram

Description automatically generated

Figure 2: 02ROAD0011 Project Figure 3: Proposed Road Design

Delegation Opportunities

The proposed agreement has some final negotiation yet to occur (specifically the costings), however the proposal is supported ‘in principle’ and the final costings can be resolved and progressed in time. As such, it is recommended that Council extend delegation for the above functions, unless the further negotiations result in substantial changes to the proposal, in which case Council will receive a further report prior to finalisation.

Conclusion

Due to the public benefit realised from the ultimate construction of the part of East Crescent, Culburra Beach, which is an identified CP project, it is in Council’s interest to support the proposal as recommended, finalise negotiations and proceed to prepare the WIKA.

Community Engagement

No community engagement is required for a WIKA. It is noted that both the overall CP that contains the infrastructure project and the development application that has triggered this WIKA were subject to community notification/engagement.

It is however recommended that the owner/developer is advised of Council’s decision in this regard.

Financial Implications

Options to Address the Funding Shortfall for the Construction of Part of East Crescent

As independent costings have not yet been finalised for this proposal, it is unclear if there will be a shortfall between the developers Section 7.11 obligations for CP project 02ROAD0011 ($91,661.10) and the infrastructure construction costs, however this may be the case.

If there is a shortfall, a funding source will need to be identified accordingly. Currently approximately $30,000 has been collected for 02ROAD0011 to date and these funds should be used in the first instance. It is preferable that any remaining shortfall be covered by recently received ‘deleted’ funds from the CP process consistent with the resolved position of Council (2 April 2019 MIN19.212(4) to:

This project is an excellent candidate for the use of ‘deleted’ funds and this option is preferred. If a shortfall remains, this shortfall could be covered by the developer upfront. The agreement could be drafted so that regular claims can be made for any contributions received over time for project 02ROAD0011 to the value of the difference (i.e., a reimbursement mechanism).

Costs associated with the drafting and entering into the WIKA

Policy Implications

Following the construction of the infrastructure as envisaged in the proposed WIKA, changes to the current CP project 02ROAD0011 will be required, in due course. Changes should reflect the partial completion status of the project, updated cost estimates, and subsequent changes to the contribution rate as required. Any changes to this project can be undertaken as part of a future amendment to the Shoalhaven CP 2019 and would be reported separately at the appropriate point in time.

Ordinary Meeting – Monday 25 July 2022

Page 0

LOCATION

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. The remaining three leases will all be aligned to 30 June 2026 as they expire with the exception of one lease which has an option expiring 31 August 2029. 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.

Community Engagement

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

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 and a summary provided within each tenants details.

Council will continue to receive subsidised determined 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 is $153,097 and loss of rental income $261,015 as a result of the proposed leases is summarised below (Table 2 – Summary Long Term Financial Plan) and detailed in the Long Term Financial Plan (Annexure A – Long Term Financial Plans)

· A total rental subsidy of $52,208 per annum or $261,015 over the lease term.

· A total operational budget of $36,950 per annum or $177,076 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 $164,850 for building works comprising of replacement flooring and external painting which is required in the 23/24 FY and beyond. This equates to an annual average expense of $32,970.

Table 2 – Summary Long Term Financial Plan

LESSEE DETAILS

AUSTRALIAN UNITY HOMECARE SERVICE PTY LIMITED

Building 1, 35 Holloway Road Nowra

Australian Unity Homecare Service Pty Limited (AUHS) are currently on holdover from their lease which expired 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 receive a determined rental with no rental subsidy which is consistent with the resolution MIN22.436 for a full market rental to be applied at 78 St Vincent Street Ulladulla. This will be effective from their lease commencement date 1 May 2022 until the expiry date 30 June 2026. Australian Unity have been contacted as a result of this resolution to determine their position on the rental level, however we are waiting on a response.

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 some capital items required over lease term which are noted below.

The estimated income to Council is $61,029 and with no lost income opportunity 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).

· No rental subsidy is relevant and with a rental income of $39,187 per annum and $163,279 received over the lease term.

· A total operational budget of $9,375 per annum or $39,200 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 $63,050 for building works comprising of new flooring and external painting which is required in the 23/24 FY and beyond.

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. Advice has also been received verbally that profits are expected to reduce by 50% within the next year due to COVID.

NORTHERN SHOALHAVEN ZONE MEALS ON WHEELS

Suite 1, 37 Holloway Road Nowra (33% occupancy)

Northern Shoalhaven Zone Meals on Wheels (MonW) are currently on holdover on a lease which expired 30 June 2021 and have been in occupation since approximately 2006.

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 rental with the previously agreed rental subsidy applied from their lease commencement date 1 July 2021 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. They share the building with Interchange Australia who occupy the majority of the building noting that it used for administrative purposes only and does not contain a kitchen for meal preparation.

An inspection occurred as part of the transaction negotiations which identified that the premises are generally in good condition with some capital works highlighted below as being required in the lease term.

The estimated cost to Council is $36,090 with a lost income opportunity of $47,535 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 33% of the building.

· A total rental subsidy of $9,507 per annum or $47,535 over the lease term expiring 30 June 2026.

· A total operational budget of $4,973 per annum or $24,865 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 $16,505 for building works comprising of new flooring and external painting which is required in the 23/24 FY.

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 available at 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 of $1,278,024 which reflects that 93% of income was invested back into the Community. Net Assets are $256,309 and Cash $102,480.

MonW have been requested to provide year end financials for this facility however referred us to the website for information. Advice received is that any information will require Board approval to provide and has not previously been supplied to Council for any transactions.

INTERCHANGE SHOALHAVEN INC

Suite 2, 37 Holloway Road Nowra

Interchange Shoalhaven Inc are currently on holdover from their lease which expired 30 June 2021. They have been in occupation of the site since approximately May 2006.

Interchange Shoalhaven is a community based not-for-profit organisation founded in 1988. For more than 30 years they’ve been putting people first by providing flexible and personalised support services in communities across the Shoalhaven. They are registered NDIS service provider, provide support programs, Social Support Clubs, Learning and Development Programs and short-term accommodation/respite.

Financial Implications

An inspection occurred as part of the transaction negotiations which identified that the premises are generally in good condition with some capital works required over the lease term provided below. They share the building with Meals on Wheels and occupy the majority of the building which is accessed by the community and have recently expanded by converting a second meeting room to office accommodation.

The estimated cost to Council is $68,810 with a lost income opportunity of $98,460 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 67% of the building.

· A total rental subsidy of $19,692 per annum or $98,460 over the lease term expiring 30 June 2026.

· A total operational budget of $9,033 per annum or $45,165 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 $32,415 for building works comprising of new flooring and external painting which is required in the 23/24 FY.

Risk Implications

No risks identified. Interchange Shoalhaven 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.

SHOALHAVEN NEIGHBOURHOOD SERVICES INC

Cottage 2, 80 Park Road Nowra

Shoalhaven Neighbourhood Services Inc (SNS) are currently on holdover from their lease which expired 30 June 2021. They have been in occupation of the site since approximately 2015. They have two locations within the Shoalhaven with the other located at 81 Osborne Street Nowra which is also owned by Council. This lease expires 31 May 2022 and the tenant has exercised a five year option with an expiry date 31 May 2027.

SNS was originally founded in 1977 knowns as Shoalhaven and Aid Centre which was run from a Council building at 7 Collins Way Nowra. The organisation changed its name in 1982 to SNS and became incorporated in 1986. A number of existing community groups originated at SNS including Werninck Cottage and Shoalhaven Youth Centre.

Main Purpose: Shoalhaven Neighbourhood Services is committed to providing a range of community, aged and disability care services through collaborating with individuals, families and communities. We currently work in the Community Services sector and provide Aged Care, National Disability Insurance Scheme (NDIS) and Community Services.

Financial Implications

An inspection occurred as part of the transaction negotiations which identified that the premises are generally in good condition with some capital works required over the lease term provided below.

The estimated cost to Council is $109,225 with a lost income opportunity of $115,020 as a result of the proposed lease which is summarised below and detailed in the Long Term Financial Plan (Annexure A – Long Term Financial Plans).

· A total rental subsidy of $23,004 per annum or $115,020 over the lease term expiring 30 June 2026.

· A total operational budget of $13,569 per annum or $67,845 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 $52,880 for building works comprising of new flooring and external painting which is required in the 23/24 FY and beyond.

Risk Implications

No risks identified. SNS 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.

Annexure A – Long Term Financial Plans

AUSTRALIAN UNITY HOMECARE SERVICES PTY LTD

Building 1, 35 Holloway Road Nowra

NORTHERN SHOALHAVEN ZONE MEALS ON WHEELS

Suite 1, 37 Holloway Road Nowra

INTERCHANGE AUSTRALIA INC

Suite 2, 37 Holloway Road Nowra

Shoalhaven Neighbourhood Services Inc

Cottage 2, 80 Park Road Nowra

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	35 Holloway Road, 37 Holloway Road and 80 Park Road, Nowra Part Lot 2, DP708441
Item 2	Lessee	Australian Unity Homecare Service Pty Limited Northern Shoalhaven Zone Meals on Wheels Interchange Australia Inc Shoalhaven Neighbourhood Services 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	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%/33%/67% 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 where possible
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 25 July 2022

Page 0

CL22.312 Trade Works & Services Provision - Panel Contract - Preferred Supplier Panel

HPERM Ref: D22/127916

Department: Building Services

Approver: Paul Keech, Director - City Services

Reason for Report

To inform Council of the tender process for the provision of trade services and to seek approval to appoint suppliers to a Panel of Preferred Suppliers for a period of two years.

Recommendation

That:

1. Council appoints the following suppliers and trades to the zones noted onto the Preferred Supplier Panel commencing immediately upon the execution of the Panel Deeds for a period of two years.

*Supplier Name*		*Zone / Area*
*Supplier Name*	*Trade*	*Shoalhaven Northern*	*Shoalhaven Central*	*Shoalhaven Southern*
Absolute Plumbing	Plumbing	x	x
AJ Grant Group	multiple	x	x	x
Allstate Asbestos & Demolition Pty Ltd	Build / Roofing	x	x	x
Alpine Glass P/L	Glazing	x	x	x
ARA Electrical High Voltage Services Pty Ltd	Electrical	x	x	x
Aus Spark Electrics Pty Ltd	Electrical	x	x	x
AWS Services Vic Pty Ltd	multiple	x
Batmac Constructions Pty Ltd	Building	x	x	x
Blue Chip Building Solutions	multiple			x
Brian Hayward Electrical	Electrical	x	x
City Coast Services Pty Ltd	multiple	x	x	x
Climax Air Conditioning Pty Ltd	Air Conditioning	x	x	x
Country 2 Coast Maintenance	Painting	x	x	x
Diverse Civil Contracting	Concreting	x	x	x
Ecodynamics Landscaping	Landscaping	x	x	x
Edwards, Mark T/a C&M Fencing	Fencing	x	x
Encat Metal & Civil	Fencing	x	x	x
FAW Electrical Pty Ltd	Electrical	x	x
Flavells Plumbing	Plumbing	x
Fowlers Plumbing Services Pty Ltd	Roofing & Plumbing	x	x	x
Fulton Hogan Pty Ltd	multiple	x	x	x
G Quinn Pty Ltd T/a Kiama Electrical Services	Air Conditioning & Electrical	x	x
Guise Family Trust T/a Ben Guise Electrical	Electrical		x	x
Harbourside Landscapes	Landscaping		x	x
Hiflow Industries Pty Ltd	Air Conditioning	x
Hitec Electrical Contracting	Electrical	x	x
Ian & Brigitte Smith	Tiling Wall & Floor	x	x	x
Ian Greenhaigh Construction Pty Ltd Southern Zone for both	Building & Concreting			x
Ian Jorgenson Electrical & Data Pty Ltd T/a IJE&D Pty Ltd	Electrical	x	x	x
Innovate Air and Electrical	Air Conditioning & Electrical	x	x	x
Inter Chillers Pty Ltd	Air Conditioning	x	x	x
Ison Plumbing P/L	Plumbing	x	x
J & S Wearne	Multiple	x	x	x
Jamie Mennie Construction Pty Ltd	Building & Concreting	x	x	x
Jervis Bay Installations	Electrical		x
Jim Freeman Plumbing Pty Ltd	Poly Weld & Plumbing	x	x
John Hills Signs Pty Ltd	Signwriting	x	x	x
Knowles Constructions	Building/Carpentry & Concreting	x	x	x
Laneyrie	Electrical	x	x	x
Lifestyle Plumbers Pty Ltd	Plumbing	x	x	x
Mark Smith Plumbing P/L T/a Accredited Plumbing	Plumbing		x	x
Matt Stewart Building	Building			x
MCM Kitchens and Joinery	Joinery/Cabinet	x	x	x
Northern Fencing Specialists Pty Ltd	Fencing	x	x	x
Nowra Emergency Plumbing	Plumbing	x	x
Opus Contracting	Painting	x	x	x
P & S Building & Construction Pty Ltd	Multiple
Parrish Plumbing Pty Ltd	Roofing & Plumbing	x	x	x
Pascall Group Pty Ltd	Plumbing	x	x	x
PD & JD Taylor T/A Protective Fencing Services	Fencing	x	x	x
Pearce & Percy Constructions Pty Ltd	Joinery / Building	x	x	x
Perspective Carpentry and Constructions Pty Ltd	Electrical / Building / Concreting	x	x	x
Pipeguy Plumbing Services	Plumbing			x
Planet Civil Pty Ltd	Concreting	x	x
Qes Electrical Contracting Pty Ltd	Electrical	x	x	x
R&K Refrigeration & Air Conditioning	Air Conditioning	x	x	x
Relyon Constructions Pty Ltd	Building/Carpentry	x
S&N Watson Plumbing Services Pty Ltd	Roofing & Plumbing	x	x	x
Shoalhaven Under Road Boring Pty Ltd	Under Road/Boring	x	x	x
Simmark	Air Conditioning / Electrical	x	x	x
South Coast Refrigeration & Air Con	Air Conditioning		x
Southern Infrastructure and Hire Pty Ltd	Under Road / Poly Pipe / Concreting	x	x	x
Specialized Fencing Solutions Pty Ltd	Building & Fencing	x	x
Stowe Australia	Electrical	x	x	x
SW & SM Resskelly T/a N&S Construction	Building	x	x	x
Trust Plumbing & Consultancy	Plumbing	x	x	x
Vogue Landscapes	multiply	x	x	x
Wade Henry Electrical	Electrical			x
Walkers Electrical Solutions Pty Ltd	Electrical	x	x	x
Wellco Developments Pty Ltd	Building & Concreting	x	x	x
Whittle Construction	Building		x	x
Wilson Hirst Carpentry Building & Maintenance Pty Ltd	Multiple	x	x	x
Evolve Electrical & Design Pty Ltd	Electrical	x	x	x
South Coast Refrigeration & Air Con.	Air Conditioning		x
New Image Kitchens	Joinery/Cabinet Making	x	x	x
Ian Greenhaigh Construction Pty Ltd	Building - Concreting			x
Dezzine Kitchens	Joinery/Cabinet Making			x
Colour sensations Painting and decorating	Painting	x

2. The contract documents and any other associated documents be executed on behalf of the Council in accordance with cl165 of the Local Government Regulation by the relevant Group Director.

Options

1. Council to accept the recommendation as presented (preferred option).

Implications

Staff can continue to access Trade services in an effective manner via the Trades Panel.

2. Council does not accept the recommendation, giving reasons and propose an alternative resolution.

Implications

Council do not appoint suppliers to the Preferred Supplier Panel for the trades detailed in this report, and that these services are engaged in accordance with adopted procurement policies and procedures.

Background

The existing Trades services panel was established by Council in 2019 for an initial two-year term expiring in December 2021. Options for two x 12month terms were not exercised by Procurement due to staff wishing to attract new service providers to the panel.

A new Tender was released via Tenderlink on 21 December 2021 and closed on 31 January 2022. This tender will create a new Panel of service providers who will be engaged on their submitted rates and on an as required basis. The acceptance of a tender and subsequent appointment to the Panel does not guarantee that a contractor will be engaged during the term of the Panel.

The tender document defined three service zones across the Shoalhaven LGA – north, central and south. The public tender was advertised in local and national newspapers, local radio and on Councils e-tendering portal. Current suppliers to Council were sent notifications via email to inform them of the advertised tender.

The tender process is in line with best practice to ensure compliance with Councils Purchasing Policy, the Local Government Act 1993 and the NSW Tendering Regulations 2009.

The following trades were invited to tender:

· Air-conditioning

· Building

· Concreting

· Electrical

· Fencing

· Glazing

· Joinery/ Cabinet Making

· Landscaping

· Painting

· Plastering

· Poly Pipe Welding

· Plumbing

· Roofing

· Signwriting

· Tiling (wall and floor)

· Under Road Boring services

At close of tenders there were submissions from 77 suppliers across all trades, located both within and outside the Shoalhaven Local Government area. This included one non-conforming Tenderer.

The submissions were evaluated by a Panel comprising key staff from City Services, Shoalhaven Water and City Lifestyles.

The evaluation team reviewed all submissions to confirm suppliers had met the mandatory criteria. One supplier, Total Finish did not submit any of the required forms or trade rates and as a result, was deemed as a non-conforming tender.

Further review of the remaining submissions noted that most of the suppliers did not complete all required forms in full. It was acknowledged that most tenderers are tradespeople with little experience completing tender documentation. The panel agreed to email clarifications to the remaining tenderers to gather the missing information.

All clarification responses were received, and the evaluation team agreed that the suppliers had all met the mandatory criteria. This was a non-ranked panel and all hourly trade rates were competitive.

It was noted that some suppliers had ticked to service all trade categories. The evaluation team agreed to exclude those suppliers from providing trade services in areas that was not related to their core trade. An example of this was building companies who had ticked signwriting services in addition to building related trades.

There was no trade qualified response to ‘Plastering’ so the evaluation team agreed to remove this category from the Trades panel list.

The Panel applied the methodology of the approved tender evaluation plan. Following the evaluation, the Panel recommended to appoint all suppliers who met the evaluation criteria. A list of suppliers to be appointed to each trade on the panel are listed below. In addition to the list below, staff will be provided with the hourly rates and the supplier business address so informed decisions can be made when engaging trades to undertake works.

Air Conditioning

Supplier	Shoalhaven North	Shoalhaven Central	Shoalhaven Southern
Climax Air Conditioning Pty Ltd	X	X	X
G Quinn Pty Ltd T/a Kiama Electrical Services	X	X
Hiflow Industries Pty Ltd	X
Innovate Air and Electrical	X	X	X
Inter Chillers Pty Ltd	X	X	X
R&K Refrigeration & Air Conditioning	X	X	X
Simmark	X	X	X
South Coast Refrigeration & Air Con		X

Building

Supplier	Shoalhaven North	Shoalhaven Central	Shoalhaven Southern
AJ Grant Group	X	X	X
Allstate Asbestos & Demolition Pty Ltd	X	X	X
AWS Services Vic Pty Ltd	X
Batmac Constructions Pty Ltd	X	X	X
Blue Chip Building Solutions			X
Fulton Hogan Pty Ltd	X	X	X
Ian Greenhaigh Construction Pty Ltd			X
J & S Wearne	X	X	X
Jamie Mennie Construction Pty Ltd	X	X	X
Knowles Constructions	X	X	X
Matt Stewart Building			X
P & S Building & Construction Pty Ltd	X	X	X
Pearce & Percy Constructions Pty Ltd	X	X	X
Perspective Carpentry and Constructions Pty Ltd	X	X	X
Relyon Constructions Pty Ltd	X
Specialized Fencing Solutions Pty Ltd	X	X
SW & SM Resskelly T/a N&S Construction	X	X	X
Wellco Developments Pty Ltd	X	X	X
Whittle Construction		X	X
Wilson Hirst Carpentry Building & Maintenance Pty Ltd	X	X	X

Concreting

Supplier	Shoalhaven North	Shoalhaven Central	Shoalhaven Southern
AJ Grant Group	X	X	X
Blue Chip Building Solutions			X
Diverse Civil Contracting	X	X	X
Fulton Hogan Pty Ltd	X	X	X
Ian Greenhaigh Construction Pty Ltd			X
J & S Wearne	X	X	X
Jamie Mennie Construction Pty Ltd	X	X	X
Knowles Constructions	X	X	X
P & S Building & Construction Pty Ltd	X	X	X
Perspective Carpentry and Constructions Pty Ltd	X	X	X
Planet Civil Pty Ltd	X	X
Southern Infrastructure and Hire Pty Ltd	X	X	X
Vogue Landscapes	X	X	X
Wellco Developments Pty Ltd	X	X	X
Wilson Hirst Carpentry Building & Maintenance Pty Ltd	X	X	X

Electrical

Supplier	Shoalhaven North	Shoalhaven Central	Shoalhaven Southern
ARA Electrical High Voltage Services Pty Ltd	X	X	X
Aus Spark Electrics Pty Ltd	X	X	X
Brian Hayward Electrical	X	X
FAW Electrical Pty Ltd	X	X
Evolve Electrical & Design Pty Ltd	X	X	X
G Quinn Pty Ltd T/a Kiama Electrical Services	X	X
Guise Family Trust T/a Ben Guise Electrical		X	X
Hitec Electrical Contracting	X	X
Ian Jorgenson Electrical & Data Pty Ltd T/a IJE&D Pty Ltd	X	X	X
Innovate Air and Electrical	X	X	X
Jervis Bay Installations		X
Laneyrie Electrical Pty Ltd	X	X	X
Qes Electrical Contracting Pty Ltd	X	X	X
Simmark	X	X	X
Stowe Australia	X	X	X
Wade Henry Electrical			X
Walkers Electrical Solutions Pty Ltd	X	X	X

Fencing

Supplier	Shoalhaven North	Shoalhaven Central	Shoalhaven Southern
AJ Grant Group	X	X	X
AWS Services Vic Pty Ltd	X
Edwards, Mark T/a C&M Fencing	X	X
Encat Metal & Civil	X	X	X
J & S Wearne	X	X	X
Northern Fencing Specialists Pty Ltd	X	X	X
P & S Building & Construction Pty Ltd	X	X	X
PD & JD Taylor	X	X	X
Specialized Fencing Solutions Pty Ltd	X	X
Wilson Hirst Carpentry Building & Maintenance Pty Ltd	X	X	X
Vogue Landscapes	X	X	X

Glazing

Supplier	Shoalhaven North	Shoalhaven Central	Shoalhaven Southern
Alpine Glass P/L	X	X	X

Joinery

Supplier	Shoalhaven North	Shoalhaven Central	Shoalhaven Southern
AJ Grant Group	X	X	X
Blue Chip Building Solutions			X
J & S Wearne	X	X	X
MCM Kitchens and Joinery	X	X	X
P & S Building & Construction Pty Ltd	X	X	X
Pearce & Percy Constructions Pty Ltd	X	X	X
Wilson Hirst Carpentry Building & Maintenance Pty Ltd	X	X	X
New Image Kitchens	X	X	X
Dezzine Kitchens			X

Landscaping

Supplier	Shoalhaven North	Shoalhaven Central	Shoalhaven Southern
AJ Grant Group	X	X	X
Ecodynamics Landscaping	X	X	X
Harbourside Landscapes		X	X
Vogue Landscapes	X	X	X
J & S Wearne	X	X	X
Wilson Hirst Carpentry Building & Maintenance Pty Ltd	X	X	X

Painting

Supplier	Shoalhaven North	Shoalhaven Central	Shoalhaven Southern
AJ Grant Group	X	X	X
Blue Chip Building Solutions			X
Colour sensations Painting and decorating	X
Country 2 Coast Maintenance	X	X	X
Fulton Hogan Pty Ltd	X	X	X
Opus Contracting	X	X	X
P & S Building & Construction Pty Ltd	X	X	X
Wilson Hirst Carpentry Building & Maintenance Pty Ltd	X	X	X

Poly Pipe Welding

Supplier	Shoalhaven North	Shoalhaven Central	Shoalhaven Southern
City Coast Services Pty Ltd	X	X	X
Jim Freeman Plumbing Pty Ltd	X	X
Southern Infrastructure and Hire Pty Ltd	X	X	X

Plumbing

Supplier	Shoalhaven North	Shoalhaven Central	Shoalhaven Southern
Absolute Plumbing	X	X
City Coast Services Pty Ltd	X	X	X
Jim Freeman Plumbing Pty Ltd	X	X
Flavells Plumbing	X
Fowlers Plumbing Services Pty Ltd	X	X	X
Fulton Hogan Pty Ltd	X	X	X
Ison Plumbing P/L	X	X
Lifestyle Plumbers Pty Ltd	X	X	X
Mark Smith Plumbing P/L T/a Accredited Plumbing		X	X
Nowra Emergency Plumbing	X	X
Parrish Plumbing Pty Ltd	X	X	X
Pascall Group Pty Ltd	X	X	X
Pipeguy Plumbing Services			X
S&N Watson Plumbing Services Pty Ltd	X	X	X
Trust Plumbing & Consultancy	X	X	X

Roofing

Supplier	Shoalhaven North	Shoalhaven Central	Shoalhaven Southern
AJ Grant Group	X	X	X
Allstate Asbestos & Demolition Pty Ltd	X	X	X
Blue Chip Building Solutions			X
Fowlers Plumbing Services Pty Ltd	X	X	X
J & S Wearne	X	X	X
P & S Building & Construction Pty Ltd	X	X	X
Parrish Plumbing Pty Ltd	X	X	X
S&N Watson Plumbing Services Pty Ltd	X	X	X
Wilson Hirst Carpentry Building & Maintenance Pty Ltd	X	X	X

Signwriting

Supplier	Shoalhaven North	Shoalhaven Central	Shoalhaven Southern
John Hills Signs Pty Ltd	X	X	X

Tiling

Supplier	Shoalhaven North	Shoalhaven Central	Shoalhaven Southern
AJ Grant Group	X	X	X
Blue Chip Building Solutions			X
Ian & Brigitte Smith	X	X	X
P & S Building & Construction Pty Ltd	X	X	X
Wilson Hirst Carpentry Building & Maintenance Pty Ltd	X	X	X

Under Road Boring

Supplier	Shoalhaven North	Shoalhaven Central	Shoalhaven Southern
City Coast Services Pty Ltd	X	X	X
Shoalhaven Under Road Boring Pty Ltd	X	X	X
Southern Infrastructure and Hire Pty Ltd	X	X	X

Community Engagement

The public tender was advertised in local and national newspapers, local radio and on Councils e-tendering portal. Current suppliers to Council were sent notifications via email to inform them of the advertised tender.

Policy Implications

Nil. This Tender has been called to continue Council’s ability to engage trades in a manner that is efficient and adheres to procurement policy.

Financial Implications

Council does not have a software application that will assist staff in managing the Trade Services Panel. The Procurement Unit will load a listing of supplier/panel combinations onto the Digital Workspace to provide staff with the contact information to engage suppliers.

Council’s online contractor management provider BNG Conserve will maintain the accreditation detail for all suppliers on the Panel.

Risk Implications

There will be trades added to the panel that have no, or little experience working with Council. It will be the responsibility of the area within Council that engages trades to ensure that the safety documentation and works are undertaken in line with Council WHS standards and work quality expectations.

Ordinary Meeting – Monday 25 July 2022

Page 0

CL22.314 Development Application - 32 & 36 Yarrawonga Dr Mollymook Beach - Lot 211 DP 1043758 & Lot 304 DP 1234415

DA. No: DA21/2359/4

HPERM Ref: D22/142873

Department: Development Services

Approver: James Ruprai, Director - City Development

Attachments: 1. Planning Report - S4.15 Assessment - 32 Yarrawonga Dr Mollymook Beach (under separate cover) ⇨

2. Planning Report - S4.15 Assessment - 36 Yarrawonga Dr Mollymook Beach (under separate cover) ⇨

3. Draft Development Consent - 32 Yarrawonga Dr Mollymook Beach (under separate cover) ⇨

4. Draft Development Consent - 36 Yarrawonga Dr Mollymook Beach (under separate cover) ⇨

5. Development Plans - 32 Yarrawonga Dr Mollymook Beach (under separate cover) ⇨

6. Development Plans - 36 Yarrawonga Dr Mollymook Beach (under separate cover) ⇨

Description of Development: Construction Two Storey Attached Dual Occupancies at 32 & 36 Yarrawonga Dr Mollymook Beach

Owner: AMJ Capital Pty Ltd – 32 Yarrawonga Dr Mollymook Beach

NM & PV Coelho – 36 Yarrawonga Dr Mollymook Beach

Applicant: Buildcert Planning

Notification Dates: 17 November 2021 to 2 December 2021

No. of Submissions:

DA21/2359 - 32 Yarrawonga Dr, Mollymook Beach: Fifteen(15) submissions (objections).

DA21/2348 - 36 Yarrawonga Dr, Mollymook Beach: Thirteen (13) submissions (objections).

Purpose / Reason for consideration by Council

The applications were called in for determination by the Council due to the public interest on 8 February 2022, by a Notice of Motion (MIN22.54).

Recommendation

That the:

1. Development Application DA21/2359 to construct a two storey attached dual occupancy and Torrens title subdivision at Lot 211 DP 1043758, 32 Yarrawonga Dr, Mollymook Beach be approved subject to the conditions contained in Attachment 3 of this report.

2. Development Application DA21/2348 to construct a two storey attached dual occupancy and Torrens title subdivision at Lot 304 DP 1234415 36 Yarrawonga Dr, Mollymook Beach be approved subject to the conditions contained in Attachment 4 of this report.

Options

1. Approve the development applications (DAs) in accordance with the recommendation of this report.

Implications: This would allow the applicant to pursue construction of the developments.

2. Refuse the development applications (DAs).

Implications: Council would need to determine the grounds on which the application is refused, having regard to sections 4.15 considerations. A refusal enables the applicant to lodge a section 8.2 Review and / or appeal with the Land and Environment Court of NSW (LEC).

3. Alternative recommendation.

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

Location Map

Figure 1 - 36 Yarrawonga Dr Mollymook Beach (blue border) &

32 Yarrawonga Dr Mollymook Beach (yellow border)

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Figure 2 - Vacant Lot at 32 Yarrawonga Dr Mollymook Beach

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Figure 3 - Vacant Lot at 36 Yarrawonga Dr Mollymook Beach

Background

Proposed Development

Both of the DAs seek approval for the construction of a two storey attached dual occupancy with Torrens Title subdivision on each lot:

	32 Yarrawonga Drive	36 Yarrawonga Drive
Proposed Development	Construction of a two-storey attached dual occupancy and Torrens subdivision
Lot Areas	665.8m2	730.1m2
Proposed Height	7.8m (SLEP 2014 Max Height of Building 8.5m)	7.3m (SLEP 2014 Maximum Height of Building 11m)
Street Presentation	Each unit has a mix of finishes including brick veneer, rendered wall sections and vertical BGC Duragroove cladding, with skillion Colourbond roofs. Street presentation is a 2 storey construction with stepped, fenestrated design aligned according to the slope of the land with a double garage and entry door, small 1^st floor verandahs and windows for each unit that are separated by a retaining wall located on the dividing boundary. Two separate driveways	Each unit has a mix of finishes including rendered brick veneer, horizontal w/board cladding with metal Colourbond skillion roofs. Yarrawonga street presentation comprises 2 storey construction with single garage door, recessed GF portico entry and fenestrated front wall articulation. Kooyonga Cl street presentation is a mix of 1 and 2 storey stepped construction with rendered brick veneer and horizontal wall cladding with fenestrated building elements Combined driveway
Proposed Floor Plan for each unit	4 bedrooms, centrally located bathroom and laundry, open kitchen, dining area and living area that allows direct access to the outdoor alfresco area	4 bedrooms, centrally located bathroom and laundry, open plan kitchen, dining area and living area Both units have covered outdoor living areas and level open space areas accessed from the main internal living areas.
Proposed GFA for units	367.73m2	314m2
Proposed Lot Sizes	Lot 1 - 326.9m² Lot 2 - 338.9m²	Lot 1 - 411.4m² Lot 2 - 318.7m²
Floor space ratio (FSR)	0.55:1	0.43:1
Proposed Earthworks	Earthworks with an approximate cut of 1.5m and fill of 750mm. Retaining walls will be used adjacent to the eastern boundary, rear northern and rear western boundary	Earthworks propose a cut of 1.5m and fill <300mm

Table 1 – Proposed development criteria for each application

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Description automatically generated Figure 4 – Site Plans - 32 Yarrawonga Dr, Mollymook Beach

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Figure 5 - 36 Yarrawonga Dr, Mollymook Beach

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Figure 6 - South & East Elevations - 32 Yarrawonga Dr Mollymook Beach

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Figure 7 -North & West Elevations - 32 Yarrawonga Dr Mollymook Beach

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Figure 8 - South & East Elevations - 36 Yarrawonga Dr Mollymook Beach

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Figure 9 - North & West Elevations - 36 Yarrawonga Dr, Mollymook Beach

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Figure 10 – Landscape Plan - 32 Yarrawonga Dr, Mollymook Beach

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Figure 11 – Landscape Plan - 36 Yarrawonga Dr, Mollymook Beach

Subject Land

The development sites comprise Lot 211 DP 1043758 (32 Yarrawonga Dr Mollymook Beach) and Lot 304 DP 1234415 (36 Yarrawonga Dr Mollymook Beach). Refer to Figures 1 and 2.

Site & Context

The development sites are both vacant, located on the northern side of Yarrawonga Drive between Yarra Yarra Close and Kooyonga Close, Mollymook Beach in an area characterised by low density development.

Specifically:

32 Yarrawonga Dr Mollymook Beach

§ Is vacant and rectangular in shape.

§ The lot is in close proximity to the Mollymook Golf Course, which is approximately 50m to the south, and is approximately 1.3km to the west of Mollymook Beach.

§ Is zoned R2 Low Density Residential and is 665.8m² in area.

§ Slopes from north east to south west, with a cross fall of approximately 4 metres.

§ The lot has a drainage easement that runs adjacent to the western side boundary.

36 Yarrawonga Dr Mollymook Beach

§ The lot is surrounded by low density residential development to the east and west and adjoins a large vacant R1 zoned lot to the north that is yet to be developed. The north western section of this lot remains in its natural state. Two detached residences that were approved as a dual occupancy in 2017 under DA17/2342 and subsequently subdivided under approval SF10648 are located opposite the site.

§ The lot is in close proximity to the Mollymook Golf Course, which is approximately 50m to the south, and is approximately 1.3km to the west of Mollymook Beach.

§ Is zoned R1 General Residential and is 730.10m² in area.

§ Slopes from north east to south west, with a cross fall of approximately 5 metres.

§ The lot has a sewage easement that runs adjacent to the western side and front boundaries

Figure 12 – Zoning Map - 32 Yarrawonga DR Mollymook Beach – R2 Low Density Zone (yellow border)

36 Yarrawonga Dr Mollymook Beach – R1 General Residential Zone (blue border)

History

The following provides details on pre-lodgement discussions, post-lodgement actions and general site history for context:

§ No informal enquiries were made with Council, or formal pre lodgement discussions held prior to lodgement.

§ The applications were lodged on 10 November 2021.

§ As a result of detailed assessment of the applications, additional information was requested from the applicant in relation to 32 Yarrawonga Dr on 15 December 2021 for a revised stormwater plan.

§ On 23 December 2021, the applicant submitted a revised stormwater plan for 32 Yarrawonga Dr which was referred back to the Development Engineer for review.

§ The applicant was invited to consider and respond to submissions for both applications on 27 January 2022.

§ Following the above, the applicant considered and provided comments in response. Revised statements of environmental effects were submitted on 2 June 2016 clarifying floor space ratio calculations.

Planning Assessment

The Development Applications have been assessed under s4.15(1) of the Environmental Planning and Assessment Act 1979. Please refer to Attachments 1 and 2.

The proposed applications have been assessed against the relevant planning instruments and have been found to be satisfactory.

Consultation and Community Engagement:

Notification was undertaken for both applications in accordance with Council’s Community Consultation Policy with letters being sent within a 25m buffer of the site. The notification period was 16 November 2021 to 3 December 2021. All submissions received in response to the notification and after the notification, were objections.

32 Yarrawonga Dr Mollymook Beach

Fifteen(15) submissions have been received within the notification period from a total of eleven (11) objectors. One submitter made three (3) submissions and two (2) submitters made two (2) submissions.

36 Yarrawonga Dr Mollymook Beach

Thirteen (13) submissions have been received from a total of nine (9) submitters. One submitter made three (3) submissions and two (2) submitters made two (2) submissions.

A request to extend the timeframe for the consideration of both of the applications was received on 19 December 2021 from the Ulladulla and Districts Community Forum. A further submission was received on 3 February 2022 stating that the Forum had visited both sites believing the proposed two dual occupancies were too bulky for the sites and would detract from the well cared for streetscape, due to most housing being single storey.

A further 13 submissions (objections), 4 from previous submitters, were received since the notification period concluded for both of the applications. The submissions raise similar issues to those received during the notification period.

Key points (for both DAs) are summarised below.

§ Character & Density

§ Driveway & garage door width.

§ Side setbacks.

§ Privacy & overshadowing

§ Car parking

§ Traffic.

§ Amenity impacts

§ Floor Space Ratio

§ Earthworks and retaining walls

§ Holiday letting

The issues raised were generally consistent for both applications with the exception of Floor Space Ratio (FSR) which was raised for 32 Yarrawonga Drive. This is discussed later in this report.

The assessment of the application considered the matters raised in the submissions (as prescribed by s4.15(d) and concluded on balance having regard to all the heads of consideration (section 4.15 Evaluation), that the application should be approved. A detailed analysis can be found in the attached section 4.15 assessment reports.

Summary of Main Issues

Compatibility and Character

Issue

The development is inappropriate and out of character with the streetscape and immediate surrounds because the area is low density residential being mostly single storey owner occupied dwellings.

Comment

Consideration of the compatibility of the proposal and its surroundings can be undertaken having regard to the Land and Environment Court Planning Principle on “compatibility with context” in Project Venture Developments V Pittwater Council [2005] NSWLEC 191. In order to test whether a proposal is compatible with its context, the following two questions can be asked:

i. Are the proposal’s physical impacts on surrounding development acceptable? The physical impacts include constraints on the development potential of surrounding sites.

The proposals physical impacts on surrounding development have been assessed against the relevant provisions in Shoalhaven Development Control Plan 2014 (DCP) and found to be satisfactory. The impacts on surrounding amenity, solar access and streetscape character are acceptable.

ii. Is the proposal’s appearance in harmony with the buildings around it and the character of the street?

It is considered that the proposed two storey modern design is in harmony with the buildings around it consistent with the character of streetscape, which is a mix of one and two storey dwellings which also use similar pitched roofs and mixed building material cladding. Although the street predominantly has single storey dwellings, there are several two storey dwellings in Yarrawonga Drive.

Dual occupancy development is an appropriate and permissible land use in the R2 low density residential zone and the R1 General Residential Zone and were also permissible under the Shoalhaven Local Environmental Plan 1985 (SLEP1985) and reaffirmed by council under Shoalhaven Local Environmental Plan 2014 (SLEP 2014). There are many dual occupancy developments in both of the zones in the Mollymook Beach area.

With respect to the tenancy arrangements, occupation of the dwellings may be by owners or renters. Tenancy status is not a planning consideration having regard to section 4.15 “Evaluation” of a development application.

Privacy

Issue

Privacy and overlooking of neighbouring dwellings.

Comment

There are no privacy or overlooking impacts to adjoining neighbours as the rear living areas and private open space (POS) are on the ground floor and the dwellings are to be set down/excavated into the site. Most conventional dwellings have private open space at the rear and at ground level. The dividing fences will provide privacy to the POS at the rear.

One of the neighbours across the road is concerned about overlooking from the front deck of 32 Yarrawonga Drive into their front yard. Given the distance between dwellings (>24m) and the fact that it is a small upper floor deck off a bedroom/rumpus room facing a public road there will be no privacy impacts. Front yards of suburban houses are also generally viewable from the street.

Overshadowing

Issue

Overshadowing of neighbouring properties living areas, POS and solar panels on the roof.

Comment

The applicant has provided shadow diagrams that indicate that the neighbouring house, 34 Yarrawonga Dr, which has solar panels on the roof will receive a minimum of three hours sunlight on June 21. In addition, given the north / south orientation, the other neighbouring properties will also receive adequate sunlight to north facing windows and POS in accordance with the NSW Land and Environment Court – Planning Principle: Sunlight – Access to Sunlight.

Setbacks

Issues

32 Yarrawonga is not setback from the front the required 7.5m and that both proposed dual occupancies did not have adequate setbacks from the side boundaries for utilities and deep planting.

Comment

The required setbacks in Table 2 of Chapter G13 of the DCP for a lot between 600m2 and 900m2 is for the front setback 6m to the dwelling and 5m to verandahs, patios and awnings. The side setback minimum is 900mm for single storey structures and 1.2m for any two storey component. The setbacks for the developments are:

32 Yarrawonga Drive

· Front setback: Dwelling to frontage: 6.07m

· Articulation to front boundary: 5.41m

· West side boundary: 1.2m (ground floor); 3.3m (first floor)

· East side boundary: 1.04m (ground floor); 3.0m (first floor)

· Rear boundary: 6.55m

36 Yarrawonga Drive

· Front setback to dwelling 8m

· Articulation to front boundary 6.7m

· The side setbacks are 1.015m and 3.455m and 1.65m to the second storey component.

· Rear setback is 4.22m

All setbacks comply with Table 2 and are generally consistent with the neighbouring dwelling at 34 Yarrawonga that has a 6m front setback to the dwelling house.

The side setbacks are all greater than the 900mm, compliant with the DCP, and considered adequate distance for utilities and landscaping.

Floor Space Ratio

Issue

The exceedance of the floor space ratio (FSR) at 32 Yarrawonga Dr.

Comment

Acceptable Solution A2.1 Table 1 of Chapter G13 of councils DCP provides that dual occupancies <1,000m2 site area have a maximum FSR of 0.5:1. The FSR for 32 Yarrawonga Drive is 0.55:1 and is exceeded by 10% which equates to 33m2. The applicant has requested a variation to this requirement and provided justification to support this request.

· The proposed development is of an appropriate scale in respect to established development in the immediate locality.

· There are adequate setbacks from the boundaries and appropriate articulation of the front façade which break up the front wall which materiality lessens the visual effect of bulk form when viewed from the public domain.

· The dwelling is of a contemporary design, assimilating to the emerging character of dwelling development within the locality. The development is considered sympathetic to the desired future character of the area.

Consideration of the compatibility of the proposal and its surroundings in relation to Floor Space Ratio can be undertaken having regard to the Land and Environment Court Planning Principle on assessment of height and bulk in Veloshin v Randwick Council [2007] NSWLEC. The proposals height and bulk is sympathetic to the surrounding area which is a mix of one and two storey development. It is also consistent with the existing and future streetscape and fits in with the residential character of the area. The floorspace does not compromise internal amenity, site amenity or streetscape impact. The proposal contains ample private open space, clothes drying areas, correct parking allocation and on-site storage. The amenity of future residents will not be affected. There are no adverse impacts as a result of the additional floor space on neighbours. The development presents to the street and has architecture which is modern and consistent with the neighbourhood.

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Figure 13 – presentation to the street, 32 Yarrawonga Dr, Mollymook

Driveway & garage door width

Issue

The two driveway access proposed for 32 Yarrawonga Dr and the width of the garage does not comply with the Acceptable solutions in the DCP.

Comment

The acceptable control (A25.2) states that the “The cumulative garage facades addressing the street shall not exceed 9m, or 50% of the length of the frontage, whichever is the lesser.” The intent of the control is to add visual interest, provide for passive surveillance and ensure garages do not dominate the design.

The garage facades measure a total of 12.01m, and the frontage of the lot is 18.5m of which 50% is 9.25m, and the frontage of the building is 17.3m of which 50% is 8.65m.

The applicant has requested Council to vary this control and undertake a merit-based assessment stating that:

· The proposed double garages are offset in excess of 2m and are considered to be maintained within the front façade of each dwelling appropriately.

· Each unit provides substantial front wall articulation to lessen the visual impact of garage wall openings from the public domain.

· The garage element is not considered to be the main point of visual focus when viewed from the street.

Irrespective of the frontage measurement, the garages are recessed, and the design of the front elevation includes a portico and a balcony for each dwelling, which provide visual interest and address the street frontage appropriately. It is considered that the garages do not overwhelm the street frontage and the design meets the performance criteria of the control. Refer to Figure 13 in this report which illustrates the front building façade. It is not atypical to many modern homes or dual occupancies.

The provision of two driveways is considered acceptable. The road network is suitable to accommodate separate driveways in this location. Noting that the proposal includes Torrens subdivision, there is also a practical benefit in separating the driveway as it is not necessary to have reciprocal rights of carriageway.

Carparking & Traffic

Issue

Increased traffic and parking impacting on the safety and amenity of what is now a quiet street and compromising access for emergency services and Council services.

Comment

Both of the dual occupancies have provided 2 car parking spaces for each dwelling in accordance with the requirements of DCP Chapter G21.

The dual occupancy development is not expected to increase traffic to a point that will have any adverse impacts on the road network. The impacts of traffic from permissible uses in the land use zones would have been a consideration at the subdivision stage and the road layout has been designed accordingly. In addition, Yarrawonga Drive is a quiet, ‘dead end’ street to the north and adjoins Kooyong Cl to the west which is also a ‘dead end’ street.

Amenity impacts

Issue

Amenity impacts and overdevelopment on the surrounding low density neighbourhood will be adversely impacted by dual occupancy development and it should not be permitted.

Comment

The R1 General Residential and R2 Low Density zoning of the lots allows for dual occupancy development with Council approval, and it is also permitted as complying development. These zones permit a range of development types. The R1 zone permits denser forms of housing to facilitate the objective of providing a “variety of housing types and densities”.

All residential zones in the Shoalhaven permit dual occupancy development.

Holiday letting

Issue

That the properties will be used for holiday letting which is a tourist use.

Comment

The potential for holiday letting is not a consideration for development approval for a dual occupancy application.

Holiday letting is exempt development in dwellings, including dual occupancy dwellings, under SEPP (Housing) 2021 – Short Term Accommodation which applies to the entire State.

Earthworks & Retaining Walls

Issue

Concerns of excavation and retaining walls on the boundary could de-stabilise existing fencing and impact on the privacy of neighbouring properties.

Comment

Conditions are imposed to ensure the retaining walls are appropriately engineered and contained within the site boundaries, and that an assessment is made of the impact of any excavation that is within the zone of influence of any structures or foundations.

The dwellings are to be excavated into the site. Noting the existing fencing, the ground floor living area windows and alfresco areas which face the rear, will not result in unacceptable privacy impacts. The location of the private spaces (to the rear and at the nominated levels) are considered an acceptable outcome.

Street presentation

Issue

Concern was relayed to Council about the street presentation and if the rooms at ground level were habitable.

Comment

Both of the residences (for each dual occupancy) proposed as part of the dual occupancies are facing the street, include street facing entry and possess proper individual street addresses.

The intention of the DCP (Chapter G12) control is to ensure that dwellings have a sense of address. There is no issue with either dual occupancy properly ‘facing’ the street. See DCP extract below.

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Where there is dual frontage, the dwellings should face each frontage.

Issue

No. 36 is a corner lot and benefits from dual frontage. The DCP states that where this is a corner lot and where practicable, one dwelling should address the primary frontage and the other, the secondary.

Comment

In this instance, the secondary lot faces Kooyonga Close. It is not fully constructed. There is also an easement for batter. Accordingly, the nominated design for No. 36 has taken these ‘constraints’ into account. It is not entirely practicable to face each frontage.

The applicant has provided the following response to the issues raised in the submissions:

· Solar access to north facing windows of 31 Yarrawonga Dr remain predominantly undeterred.

· The design responds to the topography of the land, minimizing excessive earthworks.

· The design provides articulation, a modernized design form, is sympathetic to the desired future character of the area, and the bulk is not considered to be excessive for the locality.

· The FSR and scale is appropriate, the breakup of the front wall lessens the visual effect of the bulk.

· The two driveways on 32 Yarrawonga Dr are appropriate given the slope, sight lines and safety have been considered.

· Both developments are car parking compliant with ample space on site to mitigate the need to park on the roadway.

· Setbacks are compliant and balconies off upper floor bedrooms do not pose privacy impacts and allow for passive surveillance.

· Each dwelling achieves sufficient POS, landscaping, and residential amenity.

· Dual occupancy development is permissible in the low density zone.

· Neighbouring solar panels receive more than 4 hours solar mid-winter.

· Not anticipated that each dwelling is likely to generate a high volume of vehicle usage.

· The established roadway is considered sufficient to cater for increased traffic demand which would have been assessed at the subdivision stage.

· Retaining walls do not infringe on neighbouring properties and will have appropriate drainage and structural reinforcement.

Financial Implications:

The applicant is entitled to appeal a decision of Council. In the event of an appeal being lodged with the NSW Land and Environment Court, Council would be responsible for covering its costs through proceedings.

Legal Implications

A section 8.2 review and / or an appeal with the Land and Environment Court are possible if the application/s are refused.

Summary and Conclusion

The proposed developments have satisfied the provisions of SLEP 2014, and the overall objectives and provisions contained within Shoalhaven Development Control Plan (SDCP) 2014.

These applications have been subjected to a detailed analysis of the issues raised in the submissions which have been addressed in this report.

The applications for the dual occupancy developments are compliant with the relevant planning instruments and are recommended for determination by way of approval subject to conditions outlined in Attachments 3 and 4 of the draft determinations.

Ordinary Meeting – Monday 25 July 2022

Page 0

CL22.315 Development Application - DA22/1281 - 13 The Bastion Manyana - Lot 871 DP 263106

DA. No: DA22/1281/4

HPERM Ref: D22/237832

Department: Development Services

Approver: James Ruprai, Director - City Development

Attachments: 1. Planning Report S4.15 Assessment (under separate cover) ⇨

2. Draft Determination (under separate cover) ⇨

3. Development Plans (under separate cover) ⇨

4. Report - Conjola Regional Sewerage Scheme, 17 June 2008 ⇩

5. Minute - Conjola Regional Sewerage Scheme ⇩

Description of Development: Attached Dual Occupancy

Owner: JFPG011 Pty Ltd

Applicant: Le Mottee Group Pty Ltd

Notification Dates: 18 March 2022 to 4 April 2022

No. of Submissions: 30 in objection and 1 in support

Purpose / Reason for consideration by Council

The application was called in for determination by the Council “due to the public interest and character of the area” by a Notice of Motion dated 26 April 2022 MIN22.309.

On 6 June 2022 the matter was put to Council. At that meeting, Council resolved (MIN22.370):

1. The matter be deferred, to allow;

a. For Councillors to attend a site visit of the proposed Development site and the whole of Manyana, Bendalong, North Bendalong, Berringer Lake and Cunjurong Point; and

b. Council staff to further investigate the capacity of the sewer system in Manyana including how many lots and dual occupancies could be accommodated.

2. Council in conjunction with staff investigate specific character plans or any other environmental plans that may assist defining the character of Manyana and the other Redhead Villages

Recommendation

That Development Application DA22/1281 to construct a two-storey attached dual occupancy at Lot 871 DP 263106, 13 The Bastion, Manyana be approved subject to the conditions contained in Attachment 2 of this report.

Options

1. Approve the development application (DA) in accordance with the recommendation of this report.

Implications: This would allow the applicant to pursue construction of the development.

2. Refuse the application.

Implications: Council would need to determine planning grounds on which the application is refused, having regard to section 4.15 “Evaluation”. A refusal enables the applicant to lodge a section 8.2 Review and / or appeal with the Land and Environment Court.

3. Alternative recommendation.

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

Location Map

Background

Proposed Development

The proposal is for an attached two storey dual occupancy development, each containing 3 bedrooms on the upper level. Each dwelling has a single garage facing the street. A recessed upper-level verandah is provided to the upper level facing the street.

Water and Sewer Provision (response to Council’s resolution of 6 June 2022 item b)

Shoalhaven Water advised that there was a report dated 2008 which included forward projections of infill and growth and new developments. The summary indicated a 660 Equivalent Tenement (ET) capacity with the scheme. One (1) ET equates to a 4 bedroom dwelling. The estimate took into account existing zones, a 10% dual occupancy component and ‘new’ subdivision. The original report and Minute are attached to this report. See Attachments 4 and 5.

A desktop review of the number of dual occupancies in Manyana, has revealed there are two under assessment, one was withdrawn and one approved in 2019 and a ‘secondary dwelling development’ approved in 2018.

DA22/1281 (this application) was referred to Shoalhaven Water. The referral raised no concerns with the development. Shoalhaven Water completed the referral with requirements for the determination and emailed the application with the information required to make a Certificate of Compliance application. To date the applicant has not applied for a Certificate.

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Figure 1: Site Plan

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Figure 2: Front & Rear Perspectives

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Figure 3: North & East Elevations

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Figure 4: South & West Elevations

Subject Land

The development site is Lot 871 DP 263106, 13 The Bastion Manyana.

Site & Context

The site is:

· Located on the south side of The Bastion Manyana.

· It has an area of 665.9m² with an 18m frontage to The Bastion with a depth of 37m,

· Zoned R2 Low Density Residential under the Shoalhaven Local Environmental Plan 2014 (SLEP2014)

· Surrounded by low density development which is a mix of one and two storey dwellings.

· Reasonably flat with a slight slope from the west to east.

· Currently vacant.

· Approximately 860m west of Manyana Beach and 2 km south from the junction of Inyadda Drive and Bendalong Road.

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Figure 5 - Zoning Map – R2 Low Density Residential Land

History

The following provides details on pre-lodgement discussions, post-lodgement actions and general site history for context:

§ No informal enquiries or formal pre lodgement discussions were held prior to lodgement.

§ The application was lodged on 9 March 2022.

§ The application was referred for technical comment on 21 March 2022.

§ No further information was requested from the applicant.

Planning Assessment

The Development Application has been assessed under s4.15 of the Environmental Planning and Assessment Act 1979. (Attachment 1.)

The proposed application has been assessed against the relevant planning instruments and have been found to be satisfactory

Consultation and Community Engagement:

Thirty-one (31) public submissions were received in relation to Council’s notification of the development. Thirty (30) were objections to the development including two (2) submissions from the same objectors and two (2) from Red Head Village Association. One (1) was in support of the development. Notification was made in accordance with Council’s Community Consultation Policy with letters being sent within a twenty-five metre (25m) buffer of the site. The notification was for a two (2) week period.

Key issues raised as a result of the notification are provided below.

Issue

That the proposed development would be used for holiday letting for a large number of people which impacts on the amenity of the neighbourhood

Comment

The potential for holiday letting is not a town planning consideration for a dual occupancy application.

Holiday letting is exempt development in dwellings, including dual occupancy dwellings, under SEPP (Housing) 2021 – Short Term Accommodation which applies to the entire State.

Issue

The proposal is of a bulk and scale that is inconsistent with the surrounding coastal character of the area.

Comment

To assist in controlling bulk and scale, Council has certain controls for development.

Council has adopted a Floor Space Ratio (FSR) for this type of development. A FSR is a control used to define or control the size of a building and intensity of development on a parcel of land. The Council has adopted (in its Development Control Plan (DCP) Chapter G13 - Medium Density and Other Residential Development) 0.5:1 for sites less than 1,000m² in area. The development complies with the FSR control.

An 8.5m height limit (Shoalhaven Local Environmental Plan 2014) applies to the site. The development complies with the height, being 8.1m.

With regard to compatibility with existing development, some guidance can be taken from Land and Environment Court principles. The relevant principle is “compatibility with context” in Project Venture Developments V Pittwater Council [2005] NSWLEC 191. In order to test whether a proposal is compatible with its context, the following two questions can be asked:

i. Are the proposal’s physical impacts on surrounding development acceptable? The physical impacts include constraints on the development potential of surrounding sites.

The physical impacts on surrounding development have been assessed against the relevant provisions in Shoalhaven Development Control Plan 2014 (DCP) and found to be compliant. The impacts on surrounding amenity, solar access and streetscape character are considered acceptable.

ii. Is the proposal’s appearance in harmony with the buildings around it and the character of the street?

Figure 6 – Subject site (Yellow border) Two storey construction (blue dots)

It is considered that the proposed two storey modern design is in harmony with surrounding development and is consistent with the character of the existing streetscape, which is a mix of one and two storey dwellings, which also use similar pitched roofs. Although the street predominantly has single storey dwellings, there are (10) two storey dwellings in The Bastion.

The proposed dual occupancy complies with the DCP building envelope, setbacks and FSR requirements. The design is sympathetic to the eclectic mix of one and two storey dwellings in the street.

Issue

Increasing the density of the area considering the recent bushfires by putting further responsibility on the neighbourhood and evacuation during bushfires, especially if it is used for holiday makers.

Comment

Dual occupancy development is permissible in the R2 zone under SLEP2014.

The lot is mapped as bushfire prone. A bushfire report from a Bpad qualified bushfire consultant was provided with the application and an assessment in accordance with Planning for Bushfire Protection 2019 (PBP2019) made. The assessment is satisfactory. The construction of the building must comply with a “Bushfire Attack Level (BAL) 12.5”.

The application is for an attached dual occupancy. The occupancy of the building whether owner occupier, long term or short-term rental is not a planning consideration.

Issue

Allowing a dual occupancy development will set a precedent for more dual occupancies in the area.

Comment

Dual occupancy development is a legally permissible use under the current planning instrument and under 2(a1) zoning of the former Shoalhaven Local Environmental Plan 1985. The development of more dual occupancies will be contingent on land availability and the aspirations of owners as well as any market considerations.

Issue

Dual occupancy development is not consistent with the objectives of the R2 Low Density Residential zone which has as one of the objectives ‘to provide an environment primarily for detached housing and to ensure that other development is compatible with that environment’.

Comment

Detached and attached dual occupancies are a mandated land use type in the R2 Low Density Residential zone. The objective of the R2 Zone states:

• To provide for the housing needs of the community within a low density residential environment.

• To enable other land uses that provide facilities or services to meet the day to day needs of residents.

• To provide an environment primarily for detached housing and to ensure that other development is compatible with that environment.

The objective says primarily for detached housing and not entirely. The attached dual occupancy is of a compatible bulk and scale to other two storey development in the area and complies with DCP requirements for bulk and scale, FSR, solar access and setbacks.

Issue

The adjoining neighbours have raised concerns regarding solar access and privacy impacts to their properties.

Comment

The applicant has provided shadow diagrams that indicate that the neighbouring properties will receive a minimum 3 hours sunlight between 9am and 3pm on 21 June, which complies with the DCP and the Planning Principle of the Land and Environment Court for sunlight access. The main living areas and private open space are on the ground floor and fencing between properties will provide privacy to neighbours, which is compliant with the DCP. There is a small sitting room which adjoins the front balcony and overlooks the street frontage not any neighbouring dwellings.

Issue

Potential for dual occupancy development to increase the demand on local infrastructure.

Comment

The existing infrastructure is considered adequate for the proposed dual occupancy development which is a permissible use in the zone. Refer to additional comment on Shoalhaven Water ET capacity above.

Issue

Noise from holiday makers using the dwellings.

Comment

Whether the proposed dwellings are used for holiday letting, or the tenancy arrangements of the development generally, is not a planning consideration.

Issue

Inadequate car parking and increased traffic will impact on the surrounding amenity.

Comment

The application provides for two car parking spaces on site for each dwelling which complies with the DCP requirements. The traffic generated from two dwellings will not have a significant impact on the surrounding road network.

Issue

No adaptable unit has been provided.

Comment

In accordance with the DCP, adaptable units are not required in a dual occupancy development. This provision applies where 3 or more dwellings are proposed.

Issue

The proposal will impact on property values.

Comment

The potential for impacts on property values is not a consideration for the development application under section 4.15. Property values are determined by a number of factors such as overall location, quality and age of buildings, proximity to services etc.

Issue

Trees have been cleared from the property.

Comment

The land is zoned R2, it is possible that the trees were removed in accordance with Council’s DCP Chapter 4 exemption policy which allows removal of trees where a tree is closer than its own height from an approved building – these being the neighbouring dwellings to the east and west.

Issue

The ability to subdivide duplexes is effectively abandoning the minimum allotment control for the whole of Manyana.

Comment

The current application before council does not seek any subdivision.

It is however logical to permit development such as a dual occupancy or other housing types and allow for them to be subdivided to create land title for people to buy those homes.

Issue

That the survey ground level heights on the neighbouring dwelling are incorrect. As the RL is 29 and not 30.3 which is misleading.

Comment

The 30.3 reference is the level of the gutter of the dwelling not the ground level.

Financial Implications:

There are potential cost implications for Council in the event of a refusal of the application/s. Such costs would be associated with defending an appeal/s in the Land and Environment Court of NSW.

Legal Implications

A section 8.2 review and / or an appeal with the Land and Environment Court are possible if the application is refused.

Summary and Conclusion

The proposed development has satisfied the provisions of SLEP 2014, and the overall objectives and provisions contained within Shoalhaven Development Control Plan (SDCP) 2014.

This application has been assessed and found to be satisfactory. There are no planning reasons which warrant refusal of this development.

It is noted that all residential zones permit two storey dual occupancy development to be applied for under Complying Development Provisions (CDC) of the act and SEPP (Exempt and Complying Development Code) 2008 of a potentially inferior design.

In addition, all residential zones permit secondary dwellings to be applied for under CDC provisions with a floor area up to 60% of the GFA of the main dwelling or 60m² whichever is the greater under SEPP (Housing) 2021. Neither of the two approval pathways above can be challenged by council or the community.

The application for the attached dual occupancy development is compliant with the relevant planning instruments and controls and is therefore recommended for determination by way of approval subject to conditions outlined in Attachment 2 of the draft determination.

Directorate	Name	Designated Position Start Date	Returned
Shoalhaven Water	Christopher Dougherty	09/05/2022	10/06/2022
City Services	Charmaine Schembri	30/05/2022	10/06/2022

Lessee	Southern Cross Community Housing Ltd
Lessor	Shoalhaven City Council
Premises	Lot 71 DP 734576, 8 Lawrence Avenue Nowra Lot 72 DP 734576, 67 Kinghorne St Nowra
Zoning	Business – B4 – Mixed Use
Permitted Use	Accessing by means of vehicles and foot the rear of Lot 1 DP 940591, 69 Kinghorne Street, Nowra. In exercising its rights of access, the licensee acknowledges that the Land is an operational public car park, and all movements must be in accordance with the planned layout of the car park and take account of the land’s use.
Commencement	15 July 2021
Initial Term	Five (5) years
Option Term	Five (5) year
Rent	$2,900 plus GST if applicable
Annual Increase	3%
Outgoings	N/A
Insurance	Public Risk Insurance - Twenty Million Dollars ($20,000,000.00) Noting Shoalhaven City Council as Interested Party
Special Clause	Council has the right to terminate giving three (3) months’ notice that it requires the Land for the Council’s own purposes or for any public purpose (as evidenced by a resolution of Council).

1.	Riviera Keys (Cater) Island Parkcare Group	Sussex Inlet	Updated
2.	Shoalhaven Heads Lions Parkcare Group	Shoalhaven Heads	Updated
3.	Vigilant/Morris Street Reserve	Ulladulla	Updated

Rank	Tenderer
1	T & M Lynch Pty Ltd T/A Eziway Concrete
2	Baines Transport Pty Ltd T/A Baines Concrete
3	Cleary Bros (Bombo) Pty Ltd
4	Hanson Construction Materials
5	Hy-Tec

DA	Lot	DP	Street Name	Suburb	Post Code	Description	Standard Varied	Extent Of Variation	Decision	Date
DA22/1026	5	8566229	Bugong Rd	Kangaroo Valley	2577	Dwelling (Cl4.2d)	Lot Size	9.65%	Approval – Delegated Authority	4/5/2022
DA22/1014	368	229986	Surfers Ave	Narrawallee	2539	Dwelling Cl4.3)	Height	5.5%	Approval – Delegated Authority	26/5/2022
DA21/2327	10	SEC P 12958	Hunt St	Old Erowal Bay	2540	Dual Occ & Subdivision (Cl4.1a)	Lot Size	0.35%	Approval – Delegated Authority	1/06/2022
DA20/1068	1-5 & 23	21356 & 1082957	Princes Hwy	Ulladulla	2539	Commercial (Cl4.3)	Height	16%	Approval - Council	11/4/2022
DA19/1899	32	1180195	Upper Kangaroo River Rd	Upper Kangaroo River	2577	Dwelling (Clause 4.2d)	Lot Size	4.22%	Approval – Delegated Authority	29/6/2022